HomeMy WebLinkAbout2023-4439 - Ordinance - 06/12/2023ORDINANCE NO. 2023-4439
ORDINANCE AUTHORIZING THE ISSUANCE OF GENERAL OBLIGATION BONDS;
DELEGATING THE AUTHORITY TO CERTAIN CITY OFFICIALS TO EXECUTE CERTAIN
DOCUMENTS RELATING TO THE SALE OF THE BONDS; APPROVING AND AUTHORIZING AN
OFFICIAL STATEMENT AND INSTRUMENTS AND PROCEDURES RELATING TO THE BONDS;
AND ENACTING OTHER PROVISIONS RELATING TO THE SUBJECT
WHEREAS, by virtue of a special bond election held within the City of College Station, Texas
("the Issuer"), this City Council became authorized to issue, sell and deliver the general obligation bonds
of the Issuer, of which there has been previously issued and are authorized to be issued by this Ordinance,
as described in Schedule I attached hereto and incorporated herein;
WHEREAS, this City Council finds and determines that it is necessary and proper to authorize the
issuance, sale and delivery of a portion of such voted bonds;
WHEREAS, the Issuer is an "Issuer" under Section 1371.001(4)(P), Texas Government Code,
having (i) a principal amount of at least $100 million in outstanding long-term indebtedness, in long-term
indebtedness proposed to be issued, or a combination of outstanding or proposed long-term indebtedness
and (ii) some amount of long-term indebtedness outstanding or proposed to be issued that is rated in one of
the four highest rating categories for long-term debt instruments by a nationally recognized rating agency
for municipal securities, without regard to the effect of any credit agreement or other form of credit
enhancement entered into in connection with the obligation;
WHEREAS, the Bonds hereinafter authorized to be issued are to be issued, sold and delivered
pursuant to the general laws of the State of Texas, including Texas Government Code, Chapters 1251, 1331
and 1371, as amended and the City’s Home Rule Charter; and
WHEREAS, it is officially found, determined, and declared that the meeting at which this
Ordinance has been adopted was open to the public and public notice of the time, place and subject matter
of the public business to be considered and acted upon at the meeting, including this Ordinance, was given,
all as required by the applicable provisions of Texas Government Code, Chapter 551;
THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF COLLEGE
STATION, TEXAS:
Section 1. DEFINITIONS; AUTHORIZATION OF BONDS.
(a) Definitions. Terms not otherwise defined herein shall have the following meanings.
(i) The term "Authorized Denomination" shall mean a denomination of $5,000 of
principal amount of a Bond or any integral multiple thereof.
(ii) The term "Business Day" means any day other than a Saturday, Sunday, a
legal holiday, or a day on which banking institutions in the City are, authorized by law or
executive order to close.
(iii) The term "Bonds" shall mean the Bonds authorized to be issued and delivered
by this Ordinance, unless such series designation is changed in the Pricing Certificate to
reflect the actual sale of the Bonds.
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(iv) The term "Financial Obligation" means a: (a) debt obligation; (b) derivative
instrument entered into in connection with, or pledged as security or a source of payment
for, an existing or planned debt obligation; or (c) a guarantee of the foregoing (a) and (b).
The term Financial Obligation does not include any municipal securities as to which a final
official statement has been provided to the MSRB consistent with the Rule.
(v) The term "MSRB" means the Municipal Securities Rulemaking Board.
(vi) The term "Pricing Certificate" means a certificate of the Pricing Officer setting
forth the terms of sale of the Bonds including the method of sale, principal amount,
maturity dates, interest payment dates, dated date, interest rates, yields, redemption
provisions, and other matters related to the sale of the Bonds.
(vii) The term "Pricing Officer" means the Mayor, the City Manager and the
Assistant City Manager/Chief Financial Officer (each the "Pricing Officer") each of whom
is independently authorized to finalize the terms of sale of the Bonds by execution of the
Pricing Certificate.
(viii) The term "Purchaser" means (i) if the Bonds are sold by negotiated sale, the
underwriter or underwriting syndicate selected by the Pricing Officer, or (ii) if the Bonds
are sold by competitive sale by soliciting public bids, the underwriter or underwriting
syndicate awarded the Bonds by the Pricing Officer.
(ix) The term "Rule" means SEC Rule 15c2-12 (17 C.F.R. § 240.15C2-12), as
amended from time to time.
(x) The term "SEC" means the United States Securities and Exchange
Commission.
(b) The City of College Station, Texas (the "Issuer") hereby authorizes to be issued and delivered
the Bonds, in one or more series, as follows: for the following public purposes: (i) constructing, designing,
improving and equipping a new fire station and acquisition of fire trucks and public safety equipment, and
the acquisition of land and interest in land for such projects; (ii) constructing, designing, improving,
extending and expanding transportation and mobility infrastructure consisting of the following: Rock
Prairie Road East corridor from Town Lake Drive to William D Fitch Parkway, including related utility
relocation, drainage, traffic signals and control, lighting, sidewalks, bike lanes and landscaping, the
purchase of any necessary land and right-of-way in connection with these projects; (iii) constructing,
designing, improving and equipping parks and recreational facilities consisting of the following: demolition
and reconstruction of restrooms, concession and storage space for the Bachmann Little League Building
and Senior League/Soccer Building; pickleball and futsal courts at Anderson Park including lighting,
parking and restrooms; demolition and reconstruction of the Central Park Operations Shop facility;
pavilions, lighting, shade areas, irrigation, sidewalks, pathways, playgrounds/recreational areas, historical
markers and signage at Mabel Clare Thomas Park; tennis courts, lighting and fencing at Bee Creek and
Central Parks; restrooms, sidewalks and pathways at Lincoln Center/W.A. Tarrow Park and (iv) paying
costs of issuance of the Bonds (collectively, the “Projects”). The maximum par amount of the Bonds to
be issued for the purposes above may not exceed $6,900,000.
(c) Each Bond issued pursuant to this Ordinance shall be designated: "CITY OF COLLEGE
STATION, TEXAS, GENERAL OBLIGATION BOND, SERIES 2023", and initially there shall be issued,
sold, and delivered hereunder fully registered Bonds for each series, without interest coupons, payable to
the respective registered owners thereof (with the initial bonds being made payable to the initial purchaser
as described in Section 10 hereof), or to the registered assignee or assignees of the bonds or any portion or
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portions thereof (in each case, the "Registered Owner"). The Bonds shall be in the respective denominations
and principal amounts, shall be numbered, shall mature and be payable on the date or dates in each of the
years and in the principal amounts, and shall bear interest to their respective dates of maturity or redemption
prior to maturity at the rates per annum, as set forth in the Pricing Certificate for such series of Bonds.
(d) As authorized by Sections 1371.053, Texas Government Code, each Pricing Officer is hereby
authorized to act individually and severally on behalf of the City in selling and delivering the Bonds,
carrying out the other procedures specified in this Ordinance, including, determining the date of the Bonds,
any additional or different designation or title by which the Bonds shall be known, whether the Bonds shall
be sold and delivered in one or more series and the date and sale and delivery of each such series, the price
at which the Bonds will be sold, the years in which the Bonds will mature, the principal amount to mature
in each of such years, the rate of interest to be borne by each such maturity, the interest payment and record
dates, the price and terms upon and at which the Bonds shall be subject to redemption prior to maturity at
the option of the City, as well as any mandatory sinking fund redemption provisions, and all other matters
relating to the issuance, sale, and delivery of the Bonds and obtaining municipal insurance for all or any
portion of the Bonds and providing for the terms and provisions thereof applicable to the Bonds, all of
which shall be specified in the Pricing Certificate.
(e) No series of Bonds shall be issued pursuant to this Ordinance unless each of the following
parameters are satisfied as specified in the Pricing Certificate:
(i) the aggregate principal amount of the Bonds shall not exceed $6,900,000;
(ii) the true interest cost of the Bonds shall not exceed 5.000% per annum;
(iii) the final maturity of the Bonds shall not exceed February 15, 2043;
(iv) the delegation made hereby shall expire if not exercised by the Pricing Officer on or
prior one year from the date of adoption of this Ordinance; and
(v) on or prior to delivery, the Bonds shall be rated by a nationally recognized rating
agency for municipal securities in one of the four highest categories for long-term obligations.
(f) In establishing the aggregate principal amount of the Bonds, the Pricing Officer shall establish
an amount that, when combined with premium used for purposes other than the payment of costs of
issuance, does not exceed the amount authorized in Subsection (b) hereof, which shall be sufficient in
amount to provide for the purposes for which the Bonds are authorized and to pay costs of issuing the
Bonds. The Bonds shall be sold with and subject to such terms as set forth in the Pricing Certificate.
(g) The Bonds may be sold by public offering (either through a negotiated or competitive offering)
and the Pricing Certificate shall so state, and the Pricing Certificate may conform this Ordinance to such
method of sale, including the provisions hereof that pertain to the undertaking of the Issuer in accordance
with the Rule.
(h) The City Council hereby determines that the delegation of the authority to the Pricing Officer
to approve the final terms of the Bonds as set forth in this Ordinance is, and the decisions made by the
Pricing Officer pursuant to such delegated authority and incorporated into the Pricing Certificate are
required to be, in the Issuer's best interests, and the Pricing Officer is hereby authorized to make and include
in the Pricing Certificate a finding to that effect.
Section 3. CHARACTERISTICS OF THE BONDS.
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(a) The City shall keep or cause to be kept at the corporate trust office in Dallas, Texas (the
"Designated Trust Office") of The Bank of New York Mellon Trust Company, N.A. (the "Paying
Agent/Registrar"), books or records for the registration and transfer of the Bonds (the "Registration
Books"), and the City hereby appoints the Paying Agent/Registrar as its registrar and transfer agent to keep
such books or records and make such transfers and registrations under such reasonable regulations as the
City and the Paying Agent/Registrar may prescribe; and the Paying Agent/Registrar shall make such
transfers and registrations as herein provided. It shall be the duty of the Paying Agent/Registrar to obtain
from the registered owner and record in the Registration Books the address of the registered owner of each
Bond to which payments with respect to the Bonds shall be mailed, as herein provided. The City or its
designee shall have the right to inspect the Registration Books during regular business hours of the Paying
Agent/Registrar at its Designated Trust Office, but otherwise the Paying Agent/Registrar shall keep the
Registration Books confidential and, unless otherwise required by law, shall not permit their inspection by
any other entity. Registration of each Bond may be transferred in the Registration Books only upon
presentation and surrender thereof to the Paying Agent/Registrar at its Designated Trust Office for transfer
of registration and cancellation, together with proper written instruments of assignment, in form and with
guarantee of signatures satisfactory to the Paying Agent/Registrar, evidencing the assignment of such Bond,
or any portion thereof in any Authorized Denomination, to the assignee or assignees thereof, and the right
of such assignee or assignees to have such Bond or any such portion thereof registered in the name of such
assignee or assignees. Upon the assignment and transfer of any Bond or any portion thereof, a new
substitute Bond or Bonds shall be issued in exchange therefor in the manner herein provided.
(b) The entity in whose name any Bond shall be registered in the Registration Books at any time
shall be treated as the absolute owner thereof for all purposes of this Ordinance, whether or not such Bond
shall be overdue, and the City and the Paying Agent/Registrar shall not be affected by any notice to the
contrary; and payment of, or on account of, the principal of, premium, if any, and interest on any such Bond
shall be made only to such registered owner. All such payments shall be valid and effectual to satisfy and
discharge the liability upon such Bond to the extent of the sum or sums so paid.
(c) The City hereby further appoints the Paying Agent/Registrar to act as the paying agent for
paying the principal of and interest on the Bonds, and to act as its agent to exchange or replace Bonds, all
as provided in this Ordinance. The Paying Agent/Registrar shall keep proper records of all payments made
by the City and the Paying Agent/Registrar with respect to the Bonds, and of all exchanges thereof, and all
replacements thereof, as provided in this Ordinance.
(d) Each Bond may be exchanged for fully registered Bonds in the manner set forth herein. Each
Bond issued and delivered pursuant to this Ordinance may, upon surrender thereof at the Designated Trust
Office of the Paying Agent/Registrar, together with a written request therefor duly executed by the
registered owner or the assignee or assignees thereof, or its or their duly authorized attorneys or
representatives, with guarantee of signatures satisfactory to the Paying Agent/Registrar, at the option of the
registered owner or such assignee or assignees, as appropriate, be exchanged for fully registered Bonds,
without interest coupons, in the form prescribed in the FORM OF BOND, in an Authorized Denomination
(subject to the requirement hereinafter stated that each substitute Bond shall have a single stated maturity
date), as requested in writing by such registered owner or such assignee or assignees, in an aggregate
principal amount equal to the principal amount of any Bond or Bonds so surrendered, and payable to the
appropriate registered owner, assignee, or assignees, as the case may be. If any Bond or portion thereof is
assigned and transferred, each Bond issued in exchange therefor shall have the same principal maturity date
and bear interest at the same rate as the Bond for which it is being exchanged. Each substitute Bond shall
bear a letter and/or number to distinguish it from each other Bond. The Paying Agent/Registrar shall
exchange or replace Bonds as provided herein, and each fully registered Bond or Bonds delivered in
exchange for or replacement of any Bond or portion thereof as permitted or required by any provision of
this Ordinance shall constitute one of the Bonds for all purposes of this Ordinance, and may again be
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exchanged or replaced. It is specifically provided, however, that any Bond delivered in exchange for or
replacement of another Bond prior to the first scheduled interest payment date on the Bonds (as stated on
the face thereof) shall be dated the same date as such Bond, but each substitute Bond so delivered on or
after such first scheduled interest payment date shall be dated as of the interest payment date preceding the
date on which such substitute Bond is delivered, unless such substitute Bond is delivered on an interest
payment date, in which case it shall be dated as of such date of delivery; provided, however, that if at the
time of delivery of any substitute Bond the interest on the Bond for which it is being exchanged has not
been paid, then such substitute Bond shall be dated as of the date to which such interest has been paid in
full. On each substitute Bond issued in exchange for or replacement of any Bond or Bonds issued under
this Ordinance there shall be printed thereon a Paying Agent/Registrar's Authentication Certificate, in the
form hereinafter set forth in the FORM OF BOND (the "Authentication Certificate"). An authorized
representative of the Paying Agent/Registrar shall, before the delivery of any such substitute Bond, date
such substitute Bond in the manner set forth above, and manually sign and date the Authentication
Certificate, and no such substitute Bond shall be deemed to be issued or outstanding unless the
Authentication Certificate is so executed. The Paying Agent/Registrar promptly shall cancel all Bonds
surrendered for exchange or replacement. No additional ordinances, orders, or resolutions need be passed
or adopted by the City Council or any other body or person so as to accomplish the foregoing exchange or
replacement of any Bonds or portion thereof, and the Paying Agent/Registrar shall provide for the printing,
execution, and delivery of the substitute Bond in the manner prescribed herein. Pursuant to Chapter 1206,
Texas Government Code, the duty of exchange or replacement of any Bonds as aforesaid is hereby imposed
upon the Paying Agent/Registrar, and, upon the execution of Authentication Certificate, the exchanged or
replaced Bond shall be valid, incontestable, and enforceable in the same manner and with the same effect
as the Bonds which originally were delivered pursuant to this Ordinance, approved by the Attorney General,
and registered by the Comptroller of Public Accounts. Neither the City nor the Paying Agent/Registrar
shall be required to transfer or exchange any Bond so selected for redemption, in whole or in part, within
45 calendar days of the date fixed for redemption; provided, however, such limitation of transfer shall not
be applicable to an exchange by the registered owner of the uncalled principal of a Bond.
(e) All Bonds issued in exchange or replacement of any other Bond or portion thereof, (i) shall be
issued in fully registered form, without interest coupons, with the principal of and interest on such Bonds
to be payable only to the registered owners thereof, (ii) may be transferred and assigned, (iii) may be
exchanged for other Bonds, (iv) shall have the characteristics, (v) shall be signed and sealed, and (vi) the
principal of and interest on the Bonds shall be payable, all as provided, and in the manner required or
indicated, in the FORM OF BOND.
(f) The City shall pay the Paying Agent/Registrar's reasonable and customary fees and charges for
making transfers of Bonds, but the registered owner of any Bond requesting such transfer shall pay any
taxes or other governmental charges required to be paid with respect thereto. The registered owner of any
Bonds requesting any exchange shall pay the Paying Agent/Registrar's reasonable and standard or
customary fees and charges for exchanging any such Bond or portion thereof, together with any taxes or
governmental charges required to be paid with respect thereto, all as a condition precedent to the exercise
of such privilege of exchange, except, however, that in the case of the exchange of an assigned and
transferred Bond or Bonds or any portion or portions thereof in an Authorized Denomination, as provided
in this Ordinance, such fees and charges will be paid by the City. In addition, the City hereby covenants
with the registered owners of the Bonds that it will (i) pay the reasonable and standard or customary fees
and charges of the Paying Agent/Registrar for its services with respect to the payment of the principal of
and interest on Bonds, when due, and (ii) pay the fees and charges of the Paying Agent/Registrar for services
with respect to the transfer or registration of Bonds solely to the extent above provided, and with respect to
the exchange of Bonds solely to the extent above provided.
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(g) The City covenants with the registered owners of the Bonds that at all times while the Bonds
are outstanding the City will provide a competent and legally qualified bank, trust company, financial
institution, or other agency to act as and perform the services of Paying Agent/Registrar for the Bonds under
this Ordinance, and that the Paying Agent/Registrar will be one entity. The City reserves the right to, and
may, at its option, change the Paying Agent/Registrar upon not less than sixty days written notice to the
Paying Agent/Registrar. In the event that the entity at any time acting as Paying Agent/Registrar (or its
successor by merger, acquisition, or other method) should resign or otherwise cease to act as such, the City
covenants that it will promptly appoint a competent and legally qualified national or state banking
institution which shall be a corporation organized and doing business under the laws of the United States
of America or of any state, authorized under such laws to exercise trust powers, subject to supervision or
examination by federal or state authority, and whose qualifications substantially are similar to the previous
Paying Agent/Registrar to act as Paying Agent/Registrar under this Ordinance. Upon any change in the
Paying Agent/Registrar, the previous Paying Agent/Registrar promptly shall transfer and deliver the
Registration Books (or a copy thereof), along with all other pertinent books and records relating to the
Bonds, to the new Paying Agent/Registrar designated and appointed by the City. Upon any change in the
Paying Agent/Registrar, the City promptly will cause a written notice thereof to be sent by the new Paying
Agent/Registrar to each registered owner of the Bonds, by United States mail, first-class postage prepaid,
which notice also shall give the address of the new Paying Agent/Registrar. By accepting the position and
performing as such, each Paying Agent/Registrar shall be deemed to have agreed to the provisions of this
Ordinance, and a certified copy of this Ordinance shall be delivered to each Paying Agent/Registrar.
Section 4. FORM OF BONDS. The form of the Bonds, including the form of the Authentication
Certificate, the form of Assignment and the form of Registration Certificate of the Comptroller of Public
Accounts of the State of Texas to be attached to the Bonds initially issued and delivered pursuant to this
Ordinance, shall be in substantially the form as set forth in Exhibit A to this Ordinance. The Bonds shall
numbered consecutively from R-1 upward, with the Initial Bond being numbered T-1, with such
appropriate variations, omissions, or insertions as are permitted or required by this Ordinance and with the
FORM OF BOND to be modified pursuant to, and completed with information set forth in the Pricing
Certificate. The FORM OF BOND as it appears in Exhibit A shall be completed, amended and modified
by Bond Counsel to incorporate the information set forth in the Pricing Certificate but it is not required for
the FORM OF BOND to reproduced as an exhibit to the Pricing Certificate. The printer of the Bonds is
hereby authorized to print on the Bonds (i) the form of bond counsel's opinion relating to the Bonds, and
(ii) an appropriate statement of insurance furnished by a municipal bond insurance company providing
municipal bond insurance, if any, covering all or any part of the Bonds.
Section 5. REDEMPTION PROVISIONS.
(a) Optional Redemption. The Bonds may be subject to optional redemption prior to maturity on
the dates and at the redemption prices as set forth in the Pricing Certificate. The Pricing Officer is hereby
delegated to make such modifications to the provisions of this section in the Pricing Certificate as are
necessary to complete the sale and delivery of the Bonds.
(b) Notice of Redemption. At least thirty days prior to the date fixed for any redemption of Bonds,
or portions thereof, prior to maturity, the Issuer shall cause written notice of such redemption to be sent by
United States mail, first class, postage prepaid, to each Registered Owner of a Bond to be redeemed, in
whole or in part, at the address of the Registered Owner appearing on the registration books of the Paying
Agent/Registrar at the close of business on the business day next preceding the date of mailing of such
notice. All notices of redemption so mailed shall be conclusively presumed to have been duly given
irrespective of whether received by the Registered Owner.
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(c) Firm Banking and Financial Arrangements. By the date fixed for any prior redemption, due
provision shall be made with the Paying Agent/Registrar for the payment of the required redemption price
for the Bonds or portions thereof that are to be redeemed. If written notice of redemption is mailed and if
due provision for such payment is made, all as provided above, the Bonds or portions thereof that are to be
redeemed shall automatically be treated as redeemed prior to their scheduled maturities, and they shall not
bear interest after the date fixed for redemption, and they shall not be regarded as being outstanding except
for the right of the Registered Owner to receive the redemption price from the Paying Agent/Registrar out
of the funds provided for such payment. If a portion of any Bond shall be redeemed, a substitute Bond
having the same maturity date, bearing interest at the same rate, in an Authorized Denomination, at the
written request of the Registered Owner, and in an aggregate principal amount equal to the unredeemed
portion thereof, will be issued to the Registered Owner upon the surrender thereof for cancellation, at the
expense of the Issuer.
(d) Selection of Bonds for Redemption. If less than all Bonds of the same maturity are to be
redeemed on a redemption date, the Paying Agent/Registrar shall randomly select by lot the Bonds within
such maturity to be redeemed.
(e) Conditional Notice of Redemption. With respect to any optional redemption of the Bonds,
unless certain prerequisites to such redemption required by this Order have been met and moneys sufficient
to pay the principal of and premium, if any, and interest on the Bonds to be redeemed shall have been
received by the Paying Agent/Registrar prior to the giving of such notice of redemption, such notice shall
state that said redemption may, at the option of the Issuer, be conditional upon the satisfaction of such
prerequisites and receipt of such moneys by the Paying Agent/Registrar on or prior to the date fixed for
such redemption, or upon any prerequisite set forth in such notice of redemption. If a conditional notice of
redemption is given and such prerequisites to the redemption and sufficient moneys are not received, such
notice shall be of no force and effect, the Issuer shall not redeem such Bonds and the Paying Agent/Registrar
shall give notice, in the manner in which the notice of redemption was given, to the effect that the Bonds
have not been redeemed.
Section 6. LEVY OF TAX; INTEREST AND SINKING FUND.
(a) A special fund or account, to be designated the "City of College Station Series 2023 Interest
and Sinking Fund" (the "Interest and Sinking Fund") is hereby created and shall be established and
maintained by the City. The Interest and Sinking Fund shall be kept separate and apart from all other funds
and accounts of the City, and shall be used only for paying the interest on and principal of the respective
series of Bonds. All ad valorem taxes levied and collected for and on account of the Bonds shall be
deposited, as collected, to the credit of the respective Interest and Sinking Fund. During each year while
any of the Bonds are outstanding and unpaid, the governing body of the City shall compute and ascertain
the rate and amount of ad valorem tax, based on the latest approved tax rolls of the City, with full allowances
being made for tax delinquencies and the cost of tax collections, which will be sufficient to raise and
produce the money required to pay the interest on the Bonds as such interest comes due, and to provide a
sinking fund to pay the principal (including mandatory sinking fund redemption payments, if any) of the
Bonds as such principal matures or comes due through operation of the mandatory sinking fund redemption,
if any, but never less than 2% of the original amount of the Bonds as a sinking fund each year. The rate
and amount of ad valorem tax is hereby ordered to be levied against all taxable property in the City for each
year while any of the Bonds is outstanding and unpaid, and the ad valorem tax shall be assessed and
collected each such year and deposited to the credit of the Interest and Sinking Fund. Ad valorem taxes
necessary to pay the interest on and principal of the Bonds, as such interest comes due and such principal
matures, are hereby pledged for such payment, within the limit prescribed by law.
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(b) Application of Chapter 1208, Government Code. Chapter 1208, Texas Government Code,
applies to the issuance of the Bonds and the pledge of ad valorem taxes granted by the City under this
section, and such pledge is therefore valid, effective, and perfected. If Texas law is amended at any time
while the Bonds are outstanding and unpaid such that the pledge of the ad valorem taxes granted by the
City is to be subject to the filing requirements of Chapter 9, Texas Business & Commerce Code, then in
order to preserve to the Registered Owners of the Bonds the perfection of the security interest in said pledge,
the City agrees to take such measures as it determines are reasonable and necessary under Texas law to
comply with the applicable provisions of Chapter 9, Texas Business & Commerce Code and enable a filing
to perfect the security interest in said pledge to occur.
(c) In order to pay any debt service coming due on the Bonds prior to receipt of the taxes levied to
pay such debt service, there is hereby appropriated from current funds on hand, which are hereby certified
to be on hand and available for such purpose, an amount sufficient to pay such debt service, and such
amount shall be used for no other purpose.
(d) The City shall do any and all things necessary to accomplish the transfer of monies to the
Interest and Sinking Fund of this issue in ample time to pay such items of principal and interest due on the
Bonds.
(e) The Interest and Sinking Fund created by this Ordinance shall be secured in the manner and to
the fullest extent permitted or required by law for the security of public funds, and such Interest and Sinking
Fund shall be used only for the purposes and in the manner permitted or required by this Ordinance.
Section 7. DAMAGED, MUTILATED, LOST, STOLEN, OR DESTROYED BONDS.
(a) Replacement Bonds. In the event any outstanding Bond is damaged, mutilated, lost, stolen, or
destroyed, the Paying Agent/Registrar shall cause to be printed, executed, and delivered, a new Bond of the
same principal amount, maturity, and interest rate, as the damaged, mutilated, lost, stolen, or destroyed
Bond, in replacement for such Bond in the manner hereinafter provided.
(b) Application for Replacement Bonds. Application for replacement of damaged, mutilated, lost,
stolen, or destroyed Bonds shall be made by the registered owner thereof to the Paying Agent/Registrar. In
every case of loss, theft, or destruction of a Bond, the registered owner applying for a replacement Bond
shall furnish to the City and to the Paying Agent/Registrar such security or indemnity as may be required
by them to save each of them harmless from any loss or damage with respect thereto. Also, in every case
of loss, theft, or destruction of a Bond, the registered owner shall furnish to the City and to the Paying
Agent/Registrar evidence to their satisfaction of the loss, theft, or destruction of such Bond, as the case may
be. In every case of damage or mutilation of a Bond, the registered owner shall surrender to the Paying
Agent/Registrar for cancellation the Bond so damaged or mutilated.
(c) No Default Occurred. Notwithstanding the foregoing provisions of this Section, in the event
any such Bond shall have matured, and no default has occurred which is then continuing in the payment of
the principal of, redemption premium, if any, or interest on the Bond, the City may authorize the payment
of the same (without surrender thereof except in the case of a damaged or mutilated Bond) instead of issuing
a replacement Bond, provided security or indemnity is furnished as above provided in this Section.
(d) Charge for Issuing Replacement Bonds. Prior to the issuance of any replacement Bond, the
Paying Agent/Registrar shall charge the registered owner of such Bond with all legal, printing, and other
expenses in connection therewith. Every replacement Bond issued pursuant to the provisions of this Section
by virtue of the fact that any Bond is lost, stolen, or destroyed shall constitute a contractual obligation of
the City whether or not the lost, stolen, or destroyed Bond shall be found at any time, or be enforceable by
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anyone, and shall be entitled to all the benefits of this Ordinance equally and proportionately with any and
all other Bonds duly issued under this Ordinance.
(e) Authority for Issuing Replacement Bonds. In accordance with Section 1201.067, Texas
Government Code, this Section of this Ordinance shall constitute authority for the issuance of any such
replacement Bond without necessity of further action by the City or any other body or person, and the duty
of the replacement of such Bonds is hereby authorized and imposed upon the Paying Agent/Registrar, and
the Paying Agent/Registrar shall authenticate and deliver such Bonds in the form and manner and with the
effect, as provided in Section 4(d) of this Ordinance for Bonds issued in conversion and exchange of other
Bonds.
Section 8. FEDERAL INCOME TAX MATTERS.
(a) Covenants. The Issuer covenants to take any action necessary to assure, or refrain from any
action which would adversely affect, the treatment of the Bonds as obligations described in section 103 of
the Code, the interest on which is not includable in the "gross income" of the Registered Owner for purposes
of federal income taxation. In furtherance thereof, the Issuer covenants as follows:
(i) to take any action to assure that no more than 10 percent of the proceeds of the Bonds
or the projects financed therewith (less amounts deposited to a reserve fund, if any) are used for
any "private business use," as defined in section 141(b)(6) of the Code or, if more than 10 percent
of the proceeds or the projects financed therewith are so used, such amounts, whether or not
received by the Issuer, with respect to such private business use, do not, under the terms of this
Resolution or any underlying arrangement, directly or indirectly, secure or provide for the payment
of more than 10 percent of the debt service on the Bonds, in contravention of section 141(b)(2) of
the Code;
(ii) to take any action to assure that in the event that the "private business use" described
in subsection (a)(i) hereof exceeds 5 percent of the proceeds of the Bonds or the projects financed
therewith (less amounts deposited into a reserve fund, if any) then the amount in excess of 5 percent
is used for a "private business use" which is "related" and not "disproportionate," within the
meaning of section 141(b)(3) of the Code, to the governmental use;
(iii) to take any action to assure that no amount which is greater than the lesser of
$5,000,000, or 5 percent of the proceeds of the Bonds (less amounts deposited into a reserve fund,
if any) is directly or indirectly used to finance loans to persons, other than state or local
governmental units, in contravention of section 141(c) of the Code;
(iv) to refrain from taking any action which would otherwise result in the Bonds being
treated as "private activity bonds" within the meaning of section 141(b) of the Code;
(v) to refrain from taking any action that would result in the Bonds being "federally
guaranteed" within the meaning of section 149(b) of the Code;
(vi) to refrain from using any portion of the proceeds of the Bonds, directly or indirectly,
to acquire or to replace funds which were used, directly or indirectly, to acquire investment property
(as defined in section 148(b)(2) of the Code) which produces a materially higher yield over the
term of the Bonds, other than investment property acquired with:
(A) proceeds of the Bonds invested for a reasonable temporary period of 3 years
or less or, in the case of a refunding bond, for a period of 90 days or less until such proceeds
are needed for the purpose for which the Bonds are issued,
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(B) amounts invested in a bona fide debt service fund, within the meaning of
section l.148 1(b) of the Treasury Regulations, and
(C) amounts deposited in any reasonably required reserve or replacement fund to
the extent such amounts do not exceed 10 percent of the proceeds of the Bonds;
(vii) to otherwise restrict the use of the proceeds of the Bonds or amounts treated as
proceeds of the Bonds, as may be necessary, so that the Bonds do not otherwise contravene the
requirements of section 148 of the Code (relating to arbitrage); and
(viii) to pay to the United States of America at least once during each five-year period
(beginning on the date of delivery of the Bonds) an amount that is at least equal to 90 percent of
the "Excess Earnings" (within the meaning of section 148(f) of the Code) and to pay to the United
States of America, not later than 60 days after the Bonds have been paid in full, 100 percent of the
amount then required to be paid as a result of Excess Earnings under section 148(f) of the Code.
(b) Rebate Fund. In order to facilitate compliance with subsection (a)(viii), a "Rebate Fund" is
hereby established by the Issuer for the sole benefit of the United States of America, and such fund shall
not be subject to the claim of any other person, including without limitation the Registered Owners. The
Rebate Fund is established for the additional purpose of compliance with section 148 of the Code.
(c) Proceeds. The Issuer understands that the term "proceeds" includes "disposition proceeds" as
defined in the Treasury Regulations and, in the case of refunding bonds, transferred proceeds (if any) and
proceeds of refunded obligations expended prior to the date of issuance of the Bonds. It is the
understanding of the Issuer that the covenants contained herein are intended to assure compliance with the
Code and any regulations or rulings promulgated by the U.S. Department of the Treasury pursuant thereto.
In the event that regulations or rulings are hereafter promulgated which modify or expand provisions of the
Code, as applicable to the Bonds, the Issuer will not be required to comply with any covenant contained
herein to the extent that such failure to comply, in the opinion of nationally recognized bond counsel, will
not adversely affect the exemption from federal income taxation of interest on the Bonds under section 103
of the Code. In the event that regulations or rulings are hereafter promulgated which impose additional
requirements which are applicable to the Bonds, the Issuer agrees to comply with the additional
requirements to the extent necessary, in the opinion of nationally recognized bond counsel, to preserve the
exemption from federal income taxation of interest on the Bonds under section 103 of the Code. In
furtherance of such intention, the Issuer hereby authorizes and directs the City Manager or Assistant City
Manager/Chief Financial Officer to execute any documents, certificates or reports required by the Code and
to make such elections, on behalf of the Issuer, which may be permitted by the Code as are consistent with
the purpose for the issuance of the Bonds.
Section 9. DISPOSITION OF PROJECT. The Issuer covenants that the property financed with
the proceeds of the Bonds will not be sold or otherwise disposed in a transaction resulting in the receipt by
the Issuer of cash or other compensation, unless the Issuer obtains an opinion of nationally-recognized bond
counsel that such sale or other disposition will not adversely affect the tax-exempt status of such Bonds.
For purposes of the foregoing, the portion of the property comprising personal property and disposed in the
ordinary course shall not be treated as a transaction resulting in the receipt of cash or other compensation.
For purposes hereof, the Issuer shall not be obligated to comply with this covenant if it obtains an opinion
that such failure to comply will not adversely affect the excludability for federal income tax purposes from
gross income of the interest.
Section 10. ALLOCATION OF, AND LIMITATION ON, EXPENDITURES FOR THE
PROJECT. The Issuer covenants to account for the expenditure of sale proceeds and investment earnings
to be used for the construction and acquisition of the Project on its books and records by allocating proceeds
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to expenditures within 18 months of the later of the date that (1) the expenditure is made, or (2) the Project
is completed. The foregoing notwithstanding, the Issuer shall not expend sale proceeds or investment
earnings thereon more than 60 days after the earlier of (1) the fifth anniversary of the delivery of the Bonds,
or (2) the date the Bonds are retired, unless the Issuer obtains an opinion of nationally-recognized bond
counsel that such expenditure will not adversely affect the status, for federal income tax purposes, of the
Bonds or the interest thereon. For purposes hereof, the Issuer shall not be obligated to comply with this
covenant if it obtains an opinion that such failure to comply will not adversely affect the excludability for
federal income tax purposes from gross income of the interest.
Section 11. Reserved.
Section 12. CUSTODY, APPROVAL, AND REGISTRATION OF BONDS. The City
Manager or the Assistant City Manager/Chief Financial Officer of the City is hereby authorized to have
control of the Bonds initially issued and delivered hereunder and all necessary records and proceedings
pertaining to the Bonds pending their delivery and their investigation, examination, and approval by the
Attorney General of the State of Texas, and their registration by the Comptroller of Public Accounts of the
State of Texas. Upon registration of the Bonds said Comptroller of Public Accounts (or a deputy designated
in writing to act for said Comptroller) shall manually sign the Comptroller's Registration Certificate
attached to such Bonds, and the seal of said Comptroller shall be impressed, or placed in facsimile, on such
certificate. The Bonds thus registered shall remain in the custody of the Assistant City Manager/Chief
Financial Officer (or the designee thereof) until delivered to the Purchaser (as defined in Section 16 of this
Ordinance).
Section 13. DTC REGISTRATION. The Bonds initially shall be issued and delivered in such
manner that no physical distribution of the Bonds will be made to the public, and The Depository Trust
Company ("DTC"), New York, New York, initially will act as depository for the Bonds. DTC has
represented that it is a limited purpose trust company incorporated under the laws of the State of New York,
a member of the Federal Reserve System, a "clearing corporation" within the meaning of the New York
Uniform Commercial Code, and a "clearing agency" registered under Section 17A of the Securities
Exchange Act of 1934, as amended, and the City accepts, but in no way verifies, such representations. The
Bonds initially authorized by this Ordinance shall be delivered to and registered in the name of CEDE &
CO., the nominee of DTC. It is expected that DTC will hold the Bonds on behalf of the Purchaser and its
participants. So long as each Bond is registered in the name of CEDE & CO., the Paying Agent/Registrar
shall treat and deal with DTC the same in all respects as if it were the actual and beneficial owner thereof.
It is expected that DTC will maintain a book-entry system which will identify ownership of the Bonds in
Authorized Denominations, with transfers of ownership being effected on the records of DTC and its
participants pursuant to rules and regulations established by them, and that the Bonds initially deposited
with DTC shall be immobilized and not be further exchanged for substitute Bonds except as hereinafter
provided. The City is not responsible or liable for any functions of DTC, will not be responsible for paying
any fees or charges with respect to its services, will not be responsible or liable for maintaining, supervising,
or reviewing the records of DTC or its participants, or protecting any interests or rights of the beneficial
owners of the Bonds. It shall be the duty of the DTC Participants, as defined in the Official Statement
herein approved, to make all arrangements with DTC to establish this book-entry system, the beneficial
ownership of the Bonds, and the method of paying the fees and charges of DTC. The City does not
represent, nor does it in any way covenant that the initial book-entry system established with DTC will be
maintained in the future. Notwithstanding the initial establishment of the foregoing book-entry system with
DTC, if for any reason any of the originally delivered Bonds is duly filed with the Paying Agent/Registrar
with proper request for transfer and substitution, as provided for in this Ordinance, substitute Bonds will be
duly delivered as provided in this Ordinance, and there will be no assurance or representation that any book-
entry system will be maintained for such Bonds. In connection with the initial establishment of the
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foregoing book-entry system with DTC, the City heretofore has executed a "Blanket Letter of
Representations" prepared by DTC in order to implement the book-entry system described above.
Section 14. CONTINUING DISCLOSURE OBLIGATION PURSUANT TO RULE 15C2-12
(17 C.F.R. § 240.15C2-12).
(a) Annual Reports.
(i) The City will provide certain updated financial information and operating data to the
MSRB on an annual basis in an electronic format that is prescribed by the MSRB and available via
the Electronic Municipal Market Access System ("EMMA") at www.emma.msrb.org. The
information to be updated includes all quantitative financial information and operating data with
respect to the City of the general type included in the Official Statement under Tables numbered 1
through 6; 8 through 20 and in Appendix B (or as otherwise provided in the Pricing Certificate).
The City will update and provide the information in Tables numbered 1 through 6 and 8 through
20 within six months after the end of each fiscal year ending in and after 2023. The City will
additionally provide audited financial statements when and if available, and in any event, within
12 months after the end of each fiscal year ending in or after 2023. If the audit of such financial
statements is not complete within 12 months after any such fiscal year end, then the City will file
unaudited financial statements within such 12-month period and audited financial statements for
the applicable fiscal year, when and if the audit report on such statements becomes available. Any
such financial statements will be prepared in accordance with the accounting principles described
in Appendix B of the Official Statement or such other accounting principles as the City may be
required to employ from time to time pursuant to State law or regulation.
(ii) The financial information and operating data to be provided may be set forth in full in
one or more documents or may be included by specific reference to any document available to the
public on the MSRB’s Internet Web site or filed with the SEC, as permitted by the Rule. If the
City changes its fiscal year, it will notify the MSRB of the change (and of the date of the new fiscal
year end) prior to the next date by which the City otherwise would be required to provide financial
information and operating data pursuant to this Section. The financial information and operating
data to be provided pursuant to this Section may be set forth in full in one or more documents or
may be included by specific reference to any document that is available to the public on the MSRB's
internet website or filed with the SEC. All documents provided to the MSRB pursuant to this
Section shall be accompanied by identifying information as prescribed by the MSRB.
(b) Event Notices. The City shall notify the MSRB in an electronic format as prescribed by the
MSRB, in a timely manner (but not in excess of ten Business Days after the occurrence of the event) of any
of the following events with respect to the Bonds:
1. Principal and interest payment delinquencies;
2. Non-payment related defaults, if material;
3. Unscheduled draws on debt service reserves reflecting financial difficulties;
4. Unscheduled draws on credit enhancements reflecting financial difficulties;
5. Substitution of credit or liquidity providers, or their failure to perform;
6. Adverse tax opinions or the issuance by the Internal Revenue Service of proposed or
final determinations of taxability, Notices of Proposed Issue (IRS Form 5701–TEB) or other
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material notices or determinations with respect to the tax status of the Bonds, or other material
events affecting the tax status of the Bonds;
7. Modifications to rights of Bondholders, if material;
8. Bond calls, if material, and tender offers;
9. Defeasances;
10. Release, substitution, or sale of property securing repayment of the Bonds, if material;
11. Rating changes;
12. Bankruptcy, insolvency, receivership or similar event of an obligated person (which is
considered to occur when any of the following occur: the appointment of a receiver, fiscal agent,
or similar officer for the City in a proceeding under the United States Bankruptcy Code or in any
other proceeding under state or federal law in which a court or governmental authority has assumed
jurisdiction over substantially all of the assets or business of the City, or if such jurisdiction has
been assumed by leaving the existing governing body and officials or officers in possession but
subject to the supervision and orders of a court or governmental authority, or the entry of an order
confirming a plan of reorganization, arrangement, or liquidation by a court or governmental
authority having supervision or jurisdiction over substantially all of the assets or business of the
City);
13. The consummation of a merger, consolidation, or acquisition involving an obligated
person or the sale of all or substantially all of the assets of the obligated person, other than in the
ordinary course of business, the entry into a definitive agreement to undertake such an action or the
termination of a definitive agreement relating to any such actions, other than pursuant to its terms,
if material;
14. Appointment of a successor or additional trustee or the change of name of a trustee, if
material;
15. Incurrence of a Financial Obligation of the City, if material, or agreement to covenants,
events of default, remedies, priority rights, or other similar terms of a Financial Obligation of the
City, any of which affect Bondholders, if material; and
16. Default, event of acceleration, termination event, modification of terms, or other
similar events under the terms of a Financial Obligation of the City, any of which reflect financial
difficulties.
The City shall notify the MSRB, in a timely manner, of any failure by the City to provide
financial information or operating data in accordance with this Section by the time required by such
subsection.
(c) Limitations, Disclaimers, and Amendments.
(i) The City shall be obligated to observe and perform the covenants specified in this
Section for so long as, but only for so long as, the City remains an "obligated person" with respect
to the Bonds within the meaning of the Rule, except that the City in any event will give notice of
any deposit made in accordance with this Ordinance or applicable law that causes Bonds no longer
to be outstanding.
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(ii) The provisions of this Section are for the sole benefit of the registered owners and
beneficial owners of the Bonds, and nothing in this Section, express or implied, shall give any
benefit or any legal or equitable right, remedy, or claim hereunder to any other person. The City
undertakes to provide only the financial information, operating data, financial statements, and
notices which it has expressly agreed to provide pursuant to this Section and does not hereby
undertake to provide any other information that may be relevant or material to a complete
presentation of the City's financial results, condition, or prospects or hereby undertake to update
any information provided in accordance with this Section or otherwise, except as expressly
provided herein. The City does not make any representation or warranty concerning such
information or its usefulness to a decision to invest in or sell Bonds at any future date.
(iii) UNDER NO CIRCUMSTANCE SHALL THE CITY BE LIABLE TO THE
REGISTERED OWNER OR BENEFICIAL OWNER OF ANY BOND OR ANY OTHER
PERSON, IN CONTRACT OR TORT, FOR DAMAGES RESULTING IN WHOLE OR IN PART
FROM ANY BREACH BY THE CITY, WHETHER NEGLIGENT OR WITHOUT FAULT ON
ITS PART, OF ANY COVENANT SPECIFIED IN THIS SECTION, BUT EVERY RIGHT AND
REMEDY OF ANY SUCH PERSON, IN CONTRACT OR TORT, FOR OR ON ACCOUNT OF
ANY SUCH BREACH SHALL BE LIMITED TO AN ACTION FOR MANDAMUS OR
SPECIFIC PERFORMANCE.
(iv) No default by the City in observing or performing its obligations under this Section
shall comprise a breach of or default under this Ordinance for purposes of any other provision of
this Ordinance. Nothing in this Section is intended or shall act to disclaim, waive, or otherwise
limit the duties of the City under federal and state securities laws.
(v) Should the Rule be amended to obligate the City to make filings with or provide notices
to entities other than the MSRB, the City hereby agrees to undertake such obligation with respect
to the Bonds in accordance with the Rule as amended. The provisions of this Section may be
amended by the City from time to time to adapt to changed circumstances that arise from a change
in legal requirements, a change in law, or a change in the identity, nature, status, or type of
operations of the City, but only if (1) the provisions of this Section, as so amended, would have
permitted an underwriter to purchase or sell Bonds in the primary offering of the Bonds in
compliance with the Rule, taking into account any amendments or interpretations of the Rule since
such offering as well as such changed circumstances and (2) either (a) the registered owners of a
majority in aggregate principal amount (or any greater amount required by any other provision of
this Ordinance that authorizes such an amendment) of the outstanding Bonds consent to such
amendment or (b) a person that is unaffiliated with the City (such as nationally recognized bond
counsel) determined that such amendment will not materially impair the interest of the registered
owners and beneficial owners of the Bonds. If the City so amends the provisions of this Section, it
shall include with any amended financial information or operating data next provided in accordance
with subsection (b) of this Section an explanation, in narrative form, of the reason for the
amendment and of the impact of any change in the type of financial information or operating data
so provided. The City may also amend or repeal the provisions of this continuing disclosure
agreement if the SEC amends or repeals the applicable provision of the Rule or a court of final
jurisdiction enters judgment that such provisions of the Rule are invalid, but only if and to the
extent that the provisions of this sentence would not prevent an underwriter from lawfully
purchasing or selling Bonds in the primary offering of the Bonds.
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Section 15. DEFEASANCE.
(a) Deemed Paid. Any Bond and the interest thereon shall be deemed to be paid, retired and no
longer outstanding (a "Defeased Bond") within the meaning of this Ordinance, except to the extent provided
in subsection (e) of this Section, when payment of the principal of such Bond, plus interest thereon to the
due date (whether such due date be by reason of maturity or otherwise) either (i) shall have been made or
caused to be made in accordance with the terms thereof, or (ii) shall have been provided for on or before
such due date by irrevocably depositing with or making available to the Paying Agent/Registrar in
accordance with an escrow agreement or other instrument (the "Future Escrow Agreement") for such
payment (1) lawful money of the United States of America sufficient to make such payment or (2)
Defeasance Securities that mature as to principal and interest in such amounts and at such times as will
insure the availability, without reinvestment, of sufficient money to provide for such payment, and when
proper arrangements have been made by the City with the Paying Agent/Registrar for the payment of its
services until all Defeased Bonds shall have become due and payable. At such time as a Bond shall be
deemed to be a Defeased Bond hereunder, as aforesaid, such Bond and the interest thereon shall no longer
be secured by, payable from, or entitled to the benefits of, the ad valorem taxes herein levied and pledged
as provided in this Ordinance, and such principal and interest shall be payable solely from such money or
Defeasance Securities.
(b) Investments. Any moneys so deposited with the Paying Agent/Registrar may at the written
direction of the City be invested in Defeasance Securities, maturing in the amounts and times as
hereinbefore set forth, and all income from such Defeasance Securities received by the Paying
Agent/Registrar that is not required for the payment of the Bonds and interest thereon, with respect to which
such money has been so deposited, shall be turned over to the City, or deposited as directed in writing by
the City. Any Future Escrow Agreement pursuant to which the money and/or Defeasance Securities are
held for the payment of Defeased Bonds may contain provisions permitting the investment or reinvestment
of such moneys in Defeasance Securities or the substitution of other Defeasance Securities upon the
satisfaction of the requirements specified in subsection (a)(i) or (ii) above. All income from such
Defeasance Securities received by the Paying Agent/Registrar which is not required for the payment of the
Defeased Securities, with respect to which such money has been so deposited, shall be remitted to the City
or deposited as directed in writing by the City.
(c) Selection of Defeased Bonds. In the event that the City elects to defease less than all of the
principal amount of Bonds of a maturity, the Paying Agent/Registrar shall select, or cause to be selected,
such amount of Bonds by such random method as it deems fair and appropriate.
(d) Defeasance Securities. The term "Defeasance Securities" means (i) direct, noncallable
obligations of the United States of America, including obligations that are unconditionally guaranteed by
the United States of America, (ii) noncallable obligations of an agency or instrumentality of the United
States, including obligations that are unconditionally guaranteed or insured by the agency or instrumentality
and that, on the date the governing body of the City adopts or approves the proceedings authorizing the
issuance of refunding bonds, are rated as to investment quality by a nationally recognized investment rating
firm not less than AAA or its equivalent; (iii) noncallable obligations of a state or an agency or a county,
municipality, or other political subdivision of a state that have been refunded and that, on the date the
governing body of the City adopts or approves the proceedings authorizing the issuance of refunding bonds,
are rated as to investment quality by a nationally recognized investment rating firm not less than AAA or
its equivalent and (iv) any securities and obligations now or hereafter authorized by State law that are
eligible to refund, retire or otherwise discharge obligations such as the Bonds.
(e) The Pricing Officer is authorized to modify the categories of Defeasance Securities that are
eligible to defease the Bonds.
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(f) Continuing Duty of Paying Agent/Registrar. Until all Bonds defeased under this Section of this
Ordinance shall become due and payable, the Paying Agent/Registrar for such Bonds shall perform the
services of Paying Agent/Registrar for such Bonds the same as if they had not been defeased, and the City
shall make proper arrangements to provide and pay for such services.
Section 16. SALE OF BONDS; OFFICIAL STATEMENT.
(a) The Bonds may be sold by public offering (either through a negotiated or competitive offering)
and the terms and provisions of which are to be determined by the Pricing Officer in accordance with
Section 2 hereof, and in which the purchasers of the Bonds are designated. The Bonds may be sold pursuant
to a purchase agreement or notice of sale and bidding instructions (collectively, the "Purchase Agreement")
which the Pricing Officer is hereby authorized to execute and deliver and in which the Purchaser of the
Bonds shall be designated. The Bonds shall initially be registered in the name of the Purchaser thereof as
set forth in the Pricing Certificate.
(b) The City hereby approves the form and content of the draft preliminary official statement
relating to the Certificates in the form attached hereto as Exhibit B and any addenda, supplement or
amendment thereto, and deems final the preliminary official statement and approves the distribution of such
preliminary official statement in the reoffering of the Certificates by the Purchaser, with such changes
therein or additions thereto as the Pricing Officer executing the same may deem advisable or as are required
by the Rule. The Pricing Officer is hereby authorized, in the name and on behalf of the City, to approve,
distribute, and deliver a final preliminary official statement and a final official statement relating to the
Certificates to be used by the Purchaser in the marketing of the Certificates.
(c) The Pricing Officer is authorized, in connection with effecting the sale of the Bonds, to obtain
from a municipal bond insurance company so designated in the Pricing Certificate (the "Insurer") a
municipal bond insurance policy (the "Insurance Policy") in support of the Bonds. To that end, should the
Pricing Officer exercise such authority and commit the City to obtain a municipal bond insurance policy,
for so long as the Insurance Policy is in effect, the requirements of the Insurer relating to the issuance of
the Insurance Policy are incorporated by reference into this Ordinance and made a part hereof for all
purposes, notwithstanding any other provision of this Ordinance to the contrary. The Pricing Officer shall
have the authority to execute any documents to effect the issuance of the Insurance Policy by the Insurer.
(d) The Mayor and Mayor Pro Tem, the City Manager, the Assistant City Manager/Chief Financial
Officer and City Secretary, shall be and they are hereby expressly authorized, empowered and directed from
time to time and at any time to do and perform all such acts and things and to execute, acknowledge and
deliver in the name and under the corporate seal and on behalf of the City a Paying Agent/Registrar
Agreement, in the form presented at the meeting at which this Ordinance is adopted, with the Paying
Agent/Registrar and all other instruments, whether or not herein mentioned, as may be necessary or
desirable in order to carry out the terms and provisions of this Ordinance, the Bonds, the sale of the Bonds,
the Purchase Agreement and the Official Statement. In case any officer whose signature shall appear on
any Bond shall cease to be such officer before the delivery of such Bond, such signature shall nevertheless
be valid and sufficient for all purposes the same as if such officer had remained in office until such delivery.
Section 17. FURTHER PROCEDURES. The Mayor, the City Secretary, the City Manager, and
Assistant City Manager/Chief Financial Officer, shall be and they are hereby expressly authorized,
empowered, and directed from time to time and at any time to do and perform all such acts and things and
to execute, acknowledge, and deliver in the name and under the corporate seal and on behalf of the City all
such instruments, whether or not herein mentioned, as may be necessary or desirable in order to carry out
the terms and provisions of this Ordinance, and the sale and delivery of the Bonds and fixing all details in
connection therewith. The City Council hereby authorizes the payment of the fee of the Office of the
Attorney General of the State of Texas for the examination of the proceedings relating to the issuance of
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the Bonds, in the amount determined in accordance with the provisions of Section 1202.004, Texas
Government Code.
Section 18. CONSTRUCTION FUND; USE OF PROCEEDS.
(a) The City hereby creates and establishes and shall maintain on the books of the City a separate
fund to be entitled the "Series 2023 GO Bonds Construction Fund" (the "Construction Fund") for use by
the City for payment of all lawful costs associated with the acquisition and construction of the projects as
provided in Section 1.
(b) The proceeds from the sale of the Bonds shall be deposited, on the date of closing, in the manner
described in a letter of instructions prepared by the City or on behalf of the City by the City's financial
advisor. The foregoing notwithstanding, any proceeds representing accrued interest on the Bonds shall be
deposited to the credit of the Interest and Sinking Fund.
Section 19. INTEREST EARNINGS. The interest earnings derived from the investment of
proceeds from the sale of the Bonds may be used along with other proceeds for the construction of the
permanent improvements set forth in Section 1 hereof for which the Bonds are issued; provided that after
completion of such permanent improvements, if any of such interest earnings remain on hand, such interest
earnings shall be deposited in the Interest and Sinking Fund. It is further provided, however, that any
interest earnings on proceeds which are required to be rebated to the United States of America pursuant to
this Ordinance hereof in order to prevent the Bonds from being arbitrage bonds shall be so rebated and not
considered as interest earnings for the purposes of this Section.
Section 20. DEFAULT AND REMEDIES.
(a) Events of Default. Each of the following occurrences or events for the purpose of this
Ordinance is hereby declared to be an Event of Default: (i) the failure to make payment of the principal of
or interest on any of the Bonds when the same becomes due and payable or (ii) default in the performance
or observance of any other covenant, agreement or obligation of the City, the failure to perform which
materially, adversely affects the rights of the registered owners of the Bonds, including, but not limited to,
their prospect or ability to be repaid in accordance with this Ordinance, and the continuation thereof for a
period of 60 days after notice of such default is given by any registered owner to the City.
(b) Remedies for Default. Upon the happening of any Event of Default, then and in every case,
any registered owner or an authorized representative thereof, including, but not limited to, a trustee or
trustees therefor, may proceed against the City, or any official, officer or employee of the City in their
official capacity, for the purpose of protecting and enforcing the rights of the registered owners under this
Ordinance, by mandamus or other suit, action or special proceeding in equity or at law, in any court of
competent jurisdiction, for any relief permitted by law, including the specific performance of any covenant
or agreement contained herein, or thereby to enjoin any act or thing that may be unlawful or in violation of
any right of the registered owners hereunder or any combination of such remedies. It is provided that all
such proceedings shall be instituted and maintained for the equal benefit of all registered owners of Bonds
then outstanding.
(c) Remedies Not Exclusive.
(i) No remedy herein conferred or reserved is intended to be exclusive of any other
available remedy or remedies, but each and every such remedy shall be cumulative and shall be in
addition to every other remedy given hereunder or under the Bonds or now or hereafter existing at
law or in equity; provided, however, that notwithstanding any other provision of this Ordinance,
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the right to accelerate the debt evidenced by the Bonds shall not be available as a remedy under
this Ordinance.
(ii) The exercise of any remedy herein conferred or reserved shall not be deemed a waiver
of any other available remedy.
(iii) By accepting the delivery of a Bond authorized under this Ordinance, such registered
owner agrees that the certifications required to effectuate any covenants or representations
contained in this Ordinance do not and shall never constitute or give rise to a personal or pecuniary
liability or charge against the officers, employees or members of the City or the City Council.
(iv) None of the members of the City Council, nor any other official or officer, agent, or
employee of the City, shall be charged personally by the registered owners with any liability, or be
held personally liable to the registered owners under any term or provision of this Ordinance, or
because of any Event of Default or alleged Event of Default under this Ordinance.
Section 21. Reserved.
Section 22. Reserved.
Section 23. MISCELLANEOUS PROVISIONS.
(a) Preamble. The preamble to this Ordinance is incorporated by reference and made a part hereof
for all purposes.
(b) Titles Not Restrictive. The titles assigned to the various sections of this Ordinance are for
convenience only and shall not be considered restrictive of the subject matter of any section or of any part
of this Ordinance.
(c) Rules of Construction. The words "herein", "hereof" and "hereunder" and other words of
similar import refer to this Ordinance as a whole and not to any particular section or other subdivision.
Except where the context otherwise requires, terms defined in this Ordinance to impart the singular number
shall be considered to include the plural number and vice versa. References to any named person means
that party and its successors and assigns. References to any constitutional, statutory or regulatory provision
means such provision as it exists on the date this Ordinance is adopted by the City and any future
amendments thereto or successor provisions thereof. Any reference to "FORM OF BOND" shall refer to
the form of the Bonds set forth in Exhibit A to this Ordinance. Any reference to the payment of principal
in this Ordinance shall be deemed to include the payment of any mandatory sinking fund redemption
payments as may be described herein.
(d) Inconsistent Provisions. All ordinances, orders and resolutions, or parts thereof, which are in
conflict or inconsistent with any provision of this Ordinance are hereby repealed and declared to be
inapplicable, and the provisions of this Ordinance shall be and remain controlling as to the matters
prescribed herein.
(e) Severability. If any word, phrase, clause, paragraph, sentence, part, portion, or provision of
this Ordinance or the application thereof to any person or circumstance shall be held to be invalid, the
remainder of this Ordinance shall nevertheless be valid and the City hereby declares that this Ordinance
would have been enacted without such invalid word, phrase, clause, paragraph, sentence, part, portion, or
provisions.
19
(f) Governing Law. This Ordinance shall be construed and enforced in accordance with the laws
of the State of Texas.
(g) Open Meeting. The City officially finds and determines that the meeting at which this
Ordinance is adopted was open to the public; and that public notice of the time, place, and purpose of such
meeting was given, all as required by Chapter 551, Texas Government Code.
(h) Immediate Effect. In accordance with the provisions of Section 1201.028, Texas Government
Code, this Ordinance shall be effective immediately upon its adoption by the City Council.
PASSED, APPROVED AND EFFECTIVE THIS JUNE 12, 2023.
City Secretary; City of College Station Mayor; City of College Station
(CITY SEAL)
APPROVED:
McCall, Parkhurst & Horton L.L.P., Dallas, Texas
Bond Counsel
[Remainder of page intentionally left blank.]
Schedule I - 1
SCHEDULE I – SCHEDULE OF VOTED BOND AUTHORIZATION
November 8, 2022 Special Bond Election
Purpose
Amount
Authorized
Amount
Previously Issued Unissued Balance
Proposition A: new fire station and acquisition of fire
trucks and public safety equipment, and the acquisition
of land and interest in land for such projects
$18,000,000 $0 $18,000,000
Proposition B: Rock Prairie Road East corridor from
Town Lake Drive to William D Fitch Parkway $16,100,000 $0 $16,100,000
Proposition D: demolition and reconstruction of
restrooms, concession and storage space for the
Bachmann Little League Building and Senior
League/Soccer Building; pickleball and futsal courts at
Anderson Park including lighting, parking and
restrooms; demolition and reconstruction of the Central
Park Operations Shop facility; pavilions, lighting, shade
areas, irrigation, sidewalks, pathways,
playgrounds/recreational areas, historical markers and
signage at Mabel Clare Thomas Park; tennis courts,
lighting and fencing at Bee Creek and Central Parks;
restrooms, sidewalks and pathways at Lincoln
Center/W.A. Tarrow Park
$22,000,000 $0 $22,000,000
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EXHIBIT A
FORM OF BOND
The form of the Bonds, including the form of Paying Agent/Registrar's Authentication Certificate, the form
of Assignment and the form of Registration Certificate of the Comptroller of Public Accounts of the State
of Texas to be attached only to the Bonds initially issued and delivered pursuant to this Ordinance, shall be,
respectively, substantially as follows, with such appropriate variations, omissions, or insertions as are
permitted or required by this Ordinance and with the Bonds to be completed with information set forth in
the Pricing Certificate. The Form of Bond as it appears in this Exhibit A shall be completed, amended and
modified by Bond Counsel to incorporate the information set forth in the Pricing Certificate but it is not
required for the Form of Bond to reproduced as an exhibit to the Pricing Certificate.
NO. [R][T]-1 UNITED STATES OF AMERICA
STATE OF TEXAS
BRAZOS COUNTY
PRINCIPAL
AMOUNT
$__________
CITY OF COLLEGE STATION, TEXAS
GENERAL OBLIGATION BOND, SERIES 2023
MATURITY DATE INTEREST RATE DELIVERY DATE CUSIP NO.
_______________ _______________ [], 2023 _______________
REGISTERED OWNER:
PRINCIPAL AMOUNT:
ON THE MATURITY DATE SPECIFIED ABOVE, THE CITY OF COLLEGE STATION,
TEXAS, in Brazos County (the "City"), being a political subdivision of the State of Texas, hereby promises
to pay to the Registered Owner specified above or to the registered assignee hereof (either being hereinafter
called the "registered owner") the Principal Amount specified above, and to pay interest thereon (calculated
on the basis of a 360-day year of twelve 30-day months), from the Delivery Date specified above, to the
Maturity Date specified above, or the date of its redemption prior to scheduled maturity, at the interest rate
per annum specified above, with said interest payable on [], and semiannually on each August 15 and
February 15 thereafter until maturity or prior redemption; except that if this Bond is required to be
authenticated and the date of its authentication is later than [], such interest is payable semiannually on each
August 15 and February 15 following such date.
THE PRINCIPAL OF AND INTEREST ON this Bond are payable in lawful money of the United
States of America, without exchange or collection charges. At maturity or redemption prior to maturity,
the principal of this Bond shall be paid to the registered owner hereof upon presentation and surrender of
this Bond at the designated corporate trust office in Dallas, Texas (the "Designated Trust Office") of The
Bank of New York Mellon Trust Company, N.A. which is the "Paying Agent/Registrar" for this Bond. The
payment of interest on this Bond shall be made by the Paying Agent/Registrar to the registered owner hereof
on each interest payment date by check, dated as of such interest payment date, drawn by the Paying
Agent/Registrar on, and payable solely from, funds of the City required by the ordinance authorizing the
issuance of this Bond (the "Bond Ordinance") to be on deposit with the Paying Agent/Registrar for such
purpose as hereinafter provided; and such check shall be sent by the Paying Agent/Registrar by United
States mail, first-class postage prepaid, on each such interest payment date, to the registered owner hereof,
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at its address as it appeared on the last business day of the month preceding each such date (the "Record
Date") on the Registration Books kept by the Paying Agent/Registrar, as hereinafter described. Any accrued
interest due at maturity as provided herein shall be paid to the registered owner upon presentation and
surrender of this Bond for payment at the Designated Trust Office of the Paying Agent/Registrar. The City
covenants with the registered owner of this Bond that on or before each principal and interest payment date
for this Bond it will make available to the Paying Agent/Registrar, from the "Interest and Sinking Fund"
created by the Bond Ordinance, the amounts required to provide for the payment, in immediately available
funds, of all principal of and interest on the Bonds, when due.
IN THE EVENT OF NON-PAYMENT of interest on a scheduled payment date, and for thirty days
thereafter, a new record date for such interest payment (a "Special Record Date") will be established by the
Paying Agent/Registrar, if and when funds for the payment of such interest have been received from the
City. Notice of the Special Record Date and of the scheduled payment date of the past due interest ("Special
Payment Date", which shall be 15 days after the Special Record Date) shall be sent at least five business
days prior to the Special Record Date by United States mail, first-class postage prepaid, to the address of
each registered owner of a Bond appearing on the Registration Books kept by the Paying Agent/Registrar
at the close of business on the last business day next preceding the date of mailing of such notice.
IF THE DATE for the payment of the principal of or interest on this Bond shall be a Saturday,
Sunday, a legal holiday, or a day on which banking institutions in the city where the Designated Trust
Office of the Paying Agent/Registrar is located are authorized by law or executive order to close, then the
date for such payment shall be the next succeeding day which is not such a Saturday, Sunday, legal holiday,
or day on which banking institutions are authorized to close; and payment on such date shall have the same
force and effect as if made on the original date payment was due.
\THIS BOND is one of a Series of Bonds dated as of [], 2023, authorized in accordance with the
Constitution and laws of the State of Texas in the principal amount of $[], for the following public purposes:
(i) constructing, designing, improving and equipping a new fire station and acquisition of fire trucks and
public safety equipment, and the acquisition of land and interest in land for such projects; (ii) constructing,
designing, improving, extending and expanding transportation and mobility infrastructure consisting of the
following: Rock Prairie Road East corridor from Town Lake Drive to William D Fitch Parkway, including
related utility relocation, drainage, traffic signals and control, lighting, sidewalks, bike lanes and
landscaping, the purchase of any necessary land and right-of-way in connection with these projects; (iii)
constructing, designing, improving and equipping parks and recreational facilities consisting of the
following: demolition and reconstruction of restrooms, concession and storage space for the Bachmann
Little League Building and Senior League/Soccer Building; pickleball and futsal courts at Anderson Park
including lighting, parking and restrooms; demolition and reconstruction of the Central Park Operations
Shop facility; pavilions, lighting, shade areas, irrigation, sidewalks, pathways, playgrounds/recreational
areas, historical markers and signage at Mabel Clare Thomas Park; tennis courts, lighting and fencing at
Bee Creek and Central Parks; restrooms, sidewalks and pathways at Lincoln Center/W.A. Tarrow Park and
(iv) paying costs of issuance of the Bonds (collectively, the “Projects”).
ON [], or on any date thereafter, the Bonds of this Series maturing on February 15, [] and thereafter
may be redeemed prior to their scheduled maturities, at the option of the City, in whole, or in part, at par
and accrued interest to the date fixed for redemption. The years of maturity of the Bonds called for
redemption at the option of the City prior to their stated maturity shall be selected by the City. The Bonds
or portions thereof redeemed within a maturity shall be selected by lot or other method by the Paying
Agent/Registrar; provided, that during any period in which ownership of the Bonds is determined only by
a book entry at a securities depository for the Bonds, if fewer than all of the Bonds of the same maturity
and bearing the same interest rate are to be redeemed, the particular Bonds of such maturity and bearing
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such interest rate shall be selected in accordance with the arrangements between the City and the securities
depository.
THE BONDS SCHEDULED TO MATURE on February 15, [] (the "Term Bonds") are subject to
scheduled mandatory redemption by the Paying Agent/Registrar by lot, or by any other customary method
that results in a random selection, at a price equal to the principal amount thereof, plus accrued interest to
the redemption date, out of moneys available for such purpose in the interest and sinking fund for the Bonds,
on each February 15 of the years and in the respective principal amounts, set forth in the following schedule:
Term Bonds due February 15, 20
Mandatory Redemption Date: 2/15/20 Principal Amount: $,000
Mandatory Redemption Date: 2/15/20 Principal Amount: $,000
Mandatory Redemption Date: 2/15/20* Principal Amount: $,000
* Stated Maturity
THE PRINCIPAL AMOUNT OF TERM BONDS of a stated maturity required to be redeemed on
any mandatory redemption date pursuant to the operation of the mandatory sinking fund redemption
provisions shall be reduced, at the option of the Issuer, by the principal amount of any Term Bonds of the
same maturity which, at least 50 days prior to a mandatory redemption date (1) shall have been acquired by
the Issuer at a price not exceeding the principal amount of such Term Bonds plus accrued interest to the
date of purchase thereof, and delivered to the Paying Agent/Registrar for cancellation, (2) shall have been
purchased and canceled by the Paying Agent/Registrar at the request of the Issuer at a price not exceeding
the principal amount of such Term Bonds plus accrued interest to the date of purchase, or (3) shall have
been redeemed pursuant to the optional redemption provisions and not theretofore credited against a
mandatory redemption requirement.
AT LEAST THIRTY days prior to the date fixed for any such redemption, a written notice of such
redemption shall be given to the registered owner of each Bond or a portion thereof being called for
redemption by depositing such notice in the United States mail, first-class postage prepaid, addressed to
each such registered owner at his address shown on the Registration Books of the Paying Agent/Registrar.
By the date fixed for any such redemption due provision shall be made by the City with the Paying
Agent/Registrar for the payment of the required redemption price for this Bond or the portion hereof which
is to be so redeemed, plus accrued interest thereon to the date fixed for redemption. If such notice of
redemption is given, and if due provision for such payment is made, all as provided above, this Bond, or
the portion hereof which is to be so redeemed, thereby automatically shall be redeemed prior to its scheduled
maturity, and shall not bear interest after the date fixed for its redemption, and shall not be regarded as
being outstanding except for the right of the registered owner to receive the redemption price plus accrued
interest to the date fixed for redemption from the Paying Agent/Registrar out of the funds provided for such
payment. The Paying Agent/Registrar shall record in the Registration Books all such redemptions of
principal of this Bond or any portion hereof. If a portion of any Bond shall be redeemed a substitute Bond
or Bonds having the same maturity date, bearing interest at the same rate, in Authorized Denominations, at
the written request of the registered owner, and in aggregate principal amount equal to the unredeemed
portion thereof, will be issued to the registered owner upon the surrender thereof for cancellation, at the
expense of the City, all as provided in the Ordinance.
IF AT THE TIME OF MAILING of notice of optional redemption there shall not have either been
deposited with the Paying Agent/Registrar or legally authorized escrow agent immediately available funds
sufficient to redeem all the Bonds called for redemption, such notice must state that it is conditional, and is
subject to the deposit of the redemption moneys with the Paying Agent/Registrar or legally authorized
A-4
escrow agent at or prior to the redemption date, and such notice shall be of no effect unless such moneys
are so deposited on or prior to the redemption date. If such redemption is not effectuated, the Paying
Agent/Registrar shall, within five days thereafter, give notice in the manner in which the notice of
redemption was given that such moneys were not so received and shall rescind the redemption.
ALL BONDS OF THIS SERIES are issuable solely as fully registered Bonds, without interest
coupons, in Authorized Denominations. As provided in the Bond Ordinance, this Bond may, at the request
of the registered owner or the assignee or assignees hereof, be assigned, transferred, and exchanged for a
like aggregate principal amount of fully registered Bonds, without interest coupons, payable to the
appropriate registered owner, assignee, or assignees, as the case may be, having the same maturity date,
and bearing interest at the same rate, in Authorized Denominations as requested in writing by the
appropriate registered owner, assignee, or assignees, as the case may be, upon surrender of this Bond to the
Paying Agent/Registrar at its Designated Trust Office for cancellation, all in accordance with the form and
procedures set forth in the Bond Ordinance. Among other requirements for such assignment and transfer,
this Bond must be presented and surrendered to the Paying Agent/Registrar at its Designated Trust Office,
together with proper instruments of assignment, in form and with guarantee of signatures satisfactory to the
Paying Agent/Registrar, evidencing assignment of this Bond or any portion or portions hereof in an
Authorized Denomination to the assignee or assignees in whose name or names this Bond or any such
portion or portions hereof is or are to be transferred and registered. The form of Assignment printed or
endorsed on this Bond may be executed by the registered owner to evidence the assignment hereof, but
such method is not exclusive, and other instruments of assignment satisfactory to the Paying
Agent/Registrar may be used to evidence the assignment of this Bond or any portion or portions hereof
from time to time by the registered owner. The foregoing notwithstanding, in the case of the exchange of
an assigned and transferred Bond or Bonds or any portion or portions thereof, such fees and charges of the
Paying Agent/Registrar will be paid by the City. The one requesting such exchange shall pay the Paying
Agent/Registrar's reasonable standard or customary fees and charges for exchanging any Bond or portion
thereof. In any circumstance, any taxes or governmental charges required to be paid with respect thereto
shall be paid by the one requesting such assignment, transfer, or exchange as a condition precedent to the
exercise of such privilege. In any circumstance, neither the City nor the Paying Agent/Registrar shall be
required (1) to make any transfer or exchange during a period beginning at the opening of business 30 days
before the day of the first mailing of a notice of redemption of Bonds and ending at the close of business
on the day of such mailing, or (2) to transfer or exchange any Bonds so selected for redemption when such
redemption is scheduled to occur within 45 calendar days.
WHENEVER the beneficial ownership of this Bond is determined by a book entry at a securities
depository for the Bonds, the foregoing requirements of holding, delivering or transferring this Bond shall
be modified to require the appropriate person or entity to meet the requirements of the securities depository
as to registering or transferring the book entry to produce the same effect.
IN THE EVENT any Paying Agent/Registrar for the Bonds is changed by the City, resigns, or
otherwise ceases to act as such, the City has covenanted in the Bond Ordinance that it promptly will appoint
a competent and legally qualified substitute therefor, and promptly will cause written notice thereof to be
mailed to the registered owners of the Bonds.
IT IS HEREBY certified, recited and covenanted that this Bond has been duly and validly
authorized, issued, and delivered; that all acts, conditions, and things required or proper to be performed,
exist, and be done precedent to or in the authorization, issuance, and delivery of this Bond have been
performed, existed, and been done in accordance with law; that this Bond is a direct obligation of said City,
issued on the full faith and credit thereof; and that in accordance with the terms of the Bond Ordinance,
annual ad valorem taxes sufficient to provide for the payment of the interest on and principal of this Bond,
as such interest comes due and such principal matures, have been levied and ordered to be levied against
A-5
all taxable property in said City, and have been pledged for such payment, within the limit prescribed by
law.
BY BECOMING the registered owner of this Bond, the registered owner thereby acknowledges all
of the terms and provisions of the Bond Ordinance, agrees to be bound by such terms and provisions,
acknowledges that the Bond Ordinance is duly recorded and available for inspection in the official minutes
and records of the City, and agrees that the terms and provisions of this Bond and the Bond Ordinance
constitute a contract between each registered owner hereof and the City.
IN WITNESS WHEREOF, this Bond has been signed with the manual or facsimile signature of
the Mayor of the City, attested by the manual or facsimile signature of the City Secretary, and the official
seal of the City has been duly affixed to, or impressed, or placed in facsimile, on this Bond.
City Secretary Mayor
(CITY SEAL)
FORM OF PAYING AGENT/REGISTRAR'S AUTHENTICATION CERTIFICATE
PAYING AGENT/REGISTRAR'S AUTHENTICATION CERTIFICATE
It is hereby certified that this Bond has been issued under the provisions of the proceedings adopted
by the City as described in the text of this Bond; and that this Bond has been issued in exchange for or
replacement of a Bond of an issue which originally was approved by the Attorney General of the State of
Texas and registered by the Comptroller of Public Accounts of the State of Texas.
Dated: . The Bank of New York Mellon Trust Company, N.A.
Dallas, Texas
Paying Agent/Registrar
By:
Authorized Representative
FORM OF COMPTROLLER'S CERTIFICATE
[ATTACHED TO BOND NO. T-1 UPON INITIAL DELIVERY THEREOF]
COMPTROLLER'S CERTIFICATE
OFFICE OF COMPTROLLER §
REGISTER NO.
STATE OF TEXAS §
I hereby certify that there is on file and of record in my office a true and correct copy of the opinion
of the Attorney General of the State of Texas approving this Bond and that this Bond has been registered
this day by me.
WITNESS MY HAND and seal of office at Austin, Texas this .
Comptroller of Public Accounts of the State of Texas
A-6
(SEAL)
FORM OF ASSIGNMENT
ASSIGNMENT
For value received, the undersigned hereby sells, assigns and transfers unto:
Please insert Social Security or Taxpayer Identification Number of Transferee
Please print or type name and address, including zip code of Transferee
the within Bond and all rights thereunder, and hereby irrevocably constitutes and appoints:
, attorney, to register the transfer of the within Bond on
the books kept for registration thereof, with full power of substitution in the premises.
Dated: .
Signature Guaranteed:
NOTICE: Signature(s) must be guaranteed by an
eligible guarantor institution participating in a
securities transfer association recognized signature
guarantee program.
NOTICE: The signature above must correspond
with the name of the registered owner as it appears
upon the front of this Bond in every particular,
without alteration or enlargement or any change
whatsoever.
INSERTIONS FOR THE INITIAL BOND. The initial Bond shall be in the form set forth in
paragraph (a) of this Form of Bond, except that:
i. immediately under the name of the Bond, the headings "INTEREST RATE" and "MATURITY
DATE" shall both be completed with the words "As shown below" and "CUSIP NO. _____" shall
be deleted.
ii the first paragraph shall be deleted and the following will be inserted:
"THE CITY OF COLLEGE STATION, TEXAS, in Brazos County, Texas (the "City"), being a
political subdivision of the State of Texas, hereby promises to pay to the Registered Owner specified above
or to the registered assignee hereof (either being hereinafter called the "registered owner") on the Maturity
Dates, in the Principal Amounts and bearing interest at the per annum Interest Rates set forth in the
following schedule:
Maturity
Date
Principal
Amount
Interest
Rate
[] [] []
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The City promises to pay interest on the unpaid principal amount hereof (calculated on the basis of
a 360-day year of twelve 30-day months) from the Delivery Date above at the respective Interest Rate per
annum specified above. Interest is payable on [] and on each February 15 and August 15 thereafter to the
date of payment of the Principal Amounts specified above, or the date of redemption prior to maturity;
except, that if this Bond is required to be authenticated and the date of its authentication is later than the
first Record Date (hereinafter defined), such principal amount shall bear interest from the interest payment
date next preceding the date of authentication, unless such date of authentication is after any Record Date
but on or before the next following interest payment date, in which case such principal amount shall bear
interest from such next following interest payment date; provided, however, that if on the date of
authentication hereof the interest on the Bond or Bonds, if any, for which this Bond is being exchanged is
due but has not been paid, then this Bond shall bear interest from the date to which such interest has been
paid in full."
iii. The initial Bond shall be numbered "T-1."
B-1
EXHIBIT B
PRELIMINARY OFFICIAL STATEMENT
(See “Continuing Disclosure of
Information” herein)
OFFICIAL STATEMENT
Dated __________, 2023
NEW ISSUE - Book-Entry-Only
In the opinion of McCall, Parkhurst & Horton L.L.P., Bond Counsel, interest on the Bonds will be excludable from gross income for federal income
tax purposes under statutes, regulations, published rulings and court decisions existing on the date thereof, subject to the matters described under
“TAX MATTERS” herein including the alternative minimum tax on certain corporations.
CITY OF COLLEGE STATION, TEXAS
(a Home-Rule City located in Brazos County, Texas)
$6,415,000*
GENERAL OBLIGATION BONDS, SERIES 2023
Dated Date: Date of Delivery Due: February 15, as shown on page 2
Interest Accrual Date: Date of Delivery
PAYMENT TERMS. . . Interest on the $6,415,000* City of College Station, Texas General Obligation Bonds, Series 2023 (the “Bonds”) will accrue
from the date of delivery, and will be payable February 15 and August 15 of each year commencing February 15, 2024 until maturity or prior
redemption and will be calculated on the basis of a 360-day year consisting of twelve 30-day months. The Bonds will be calculated on the basis of
a 360-day year consisting of twelve 30-day months. The definitive Bonds will be initially registered and delivered only to Cede & Co., the nominee
of The Depository Trust Company (“DTC”) pursuant to the Book-Entry-Only System described herein. Beneficial ownership of the Bonds may be
acquired in denominations of $5,000 of principal amount or any integral multiples thereof within a maturity. No physical delivery of the Bonds will
be made to the beneficial owners thereof. Principal of, premium, if any, and interest on the Bonds will be payable by the Paying Agent/Registrar
to Cede & Co., which will make distribution of the amounts so paid to the participating members of DTC for subsequent payment to the beneficial
owners of the Bonds. See “THE OBLIGATIONS – Book-Entry-Only System” herein. The initial Paying Agent/Registrar is The Bank of New York
Mellon Trust Company, N.A., Dallas, Texas (see “THE OBLIGATIONS – Paying Agent/Registrar”).
AUTHORITY FOR ISSUANCE. . . Bonds are issued pursuant to the Constitution and general laws of the State of Texas, including particularly Chapters
1251 and 1331 of the Texas Government Code, as amended, an election held in the City of College Station, Texas (the “City”) on November 8, 2022
and an ordinance to be adopted by the City Council of the City (the “Bond Ordinance”). The Bonds constitute direct obligations of the City, payable
from a continuing ad valorem tax levied on all taxable property within the City within the limits prescribed by law, as provided in the Bond Ordinance
(see “THE OBLIGATIONS - Authority for Issuance”).
PURPOSE. . . Proceeds from the sale of the Bonds will be used for (i) a new fire station and acquisition of fire trucks and public safety equipment;
transportation and mobility infrastructure; parks and recreational facilities, and; (ii) professional services rendered in relation to such projects and the
issuance costs of the Bonds.
CUSIP PREFIX: 194469
MATURITY SCHEDULE & 9 DIGIT CUSIP
See Schedule on page 2
SEPARATE ISSUES . . . The Bonds are being offered by the City concurrently with the issuance of the $27,495,000* City of College Station, Texas,
Certificates of Obligation, Series 2023 (the “Certificates”) under a common Official Statement. The Bonds and the Certificates are separate and
distinct securities offerings being issued and sold independently except for this Official Statement, and such Bonds and Certificates are hereinafter sometimes referred to collectively as the “Obligations.” While the Bonds and Certificates share certain common attributes, each issue is separate
from the other and should be reviewed and analyzed independently, including without limitation the type of obligation being offered, its terms of
payment, the rights of the City to redeem the Obligations of either series, the federal, state or local tax consequences of the purchase, ownership or disposition of the Obligations and other features.
LEGALITY. . . The Bonds are offered for delivery, when issued, and received by the initial purchaser (the “Initial Purchaser”) and subject to the
opinion of the Attorney General of the State of Texas and the opinion of McCall, Parkhurst & Horton L.L.P., Dallas, Texas, Bond Counsel for the
City (see “APPENDIX C – Form of Opinion Of Bond Counsel”). Certain legal matters will be passed upon for the City by McCall, Parkhurst &
Horton, L.L.P., Dallas, Texas, Disclosure Counsel for the City.
DELIVERY. . . It is expected that the Bonds will be available for delivery through the services of DTC on or about July 6, 2023.
BIDS DUE WEDNESDAY, JUNE 21, 2023 AT 10:00 A.M. CDT
* Preliminary, subject to change.
Ratings:
Moody’s: Applied for
S&P: Applied for
See “OTHER INFORMATION –
Ratings” herein
This Preliminary Official Statement and the information contained herein are subject to completion or amendment. These securities may not be sold nor may offers to buy be accepted prior to the time the Official Statement is delivered in final form. Under no circumstances shall this Preliminary Official Statement constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of these securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction.
CUSIP Prefix: 194469(1)
MATURITY SCHEDULE*
$6,415,000*
General Obligation Bonds, Series 2023
Due Interest
Feb. 15 Principal Rate Yield CUSIP
(1)
2024 225,000$
2025 295,000
2026 305,000
2027 320,000
2028 340,000
2029 355,000
2030 375,000
2031 240,000
2032 250,000
2033 265,000
2034 270,000
2035 285,000
2036 300,000
2037 315,000
2038 330,000
2039 350,000
2040 370,000
2041 390,000
2042 405,000
2043 430,000
(1) CUSIP is a registered trademark of the American Bankers Association. CUSIP data herein is provided by CUSIP Global Services,
managed by Standard and Poor’s Financial Services LLC on behalf of the American Bankers Association. This data is not intended to
create a database and does not serve in any way as a substitute for the CUSIP Services. Neither the City nor the Financial Advisor shall
be responsible for the selection or correctness of the CUSIP numbers set forth herein.
OPTIONAL REDEMPTION . . . The City reserves the right, at its option, to redeem Bonds having stated maturities on and after February 15,
2033, in whole or in part in principal amounts of $5,000 or any integral multiple thereof, on February 15, 2032, or any date thereafter, at the
par value thereof plus accrued interest to the date of redemption (see “THE OBLIGATONS – Optional Redemption”).
MANDATORY SINKING FUND REDEMPTION . . . In addition to the foregoing optional redemption provision, if in connection with the pricing
of the Bonds the principal amounts designated in the Maturity Schedule herein are combined to create Term Bonds, each Term Bond shall
be subject to mandatory sinking fund redemption commencing on February 15 of the first year which has been combined to form such Term
Bond and continuing on February 15 in each year thereafter until the stated maturity date of that Term Bond, and the amount required to be
redeemed in any year shall be equal to the principal amount for such year set forth in the serial maturity schedule shown above (see ‘THE
OBLIGATIONS – Mandatory Sinking Fund Redemption”).
* Preliminary, subject to change.
(See “Continuing Disclosure of
Information” herein)
OFFICIAL STATEMENT
Dated __________, 2023
NEW ISSUE - Book-Entry-Only
In the opinion of McCall, Parkhurst & Horton L.L.P., Bond Counsel, interest on the Certificates will be excludable from gross income for federal
income tax purposes under statutes, regulations, published rulings and court decisions existing on the date thereof, subject to the matters described
under “TAX MATTERS” herein including the alternative minimum tax on certain corporations.
CITY OF COLLEGE STATION, TEXAS
(a Home-Rule City located in Brazos County, Texas)
$27,495,000*
CERTIFICATES OF OBLIGATION, SERIES 2023
Dated Date: Date of Delivery Due: February 15, as shown on page 4
Interest Accrual Date: Date of Delivery
PAYMENT TERMS. . . Interest on the $27,495,000* City of College Station, Texas Certificates of Obligation, Series 2023 (the “Certificates”) will
accrue from the date of delivery, and will be payable February 15 and August 15 of each year commencing February 15, 2024 until maturity or prior
redemption and will be calculated on the basis of a 360-day year consisting of twelve 30-day months. The Certificates will be calculated on the basis
of a 360-day year consisting of twelve 30-day months. The definitive Certificates will be initially registered and delivered only to Cede & Co., the
nominee of The Depository Trust Company (“DTC”) pursuant to the Book-Entry-Only System described herein. Beneficial ownership of the
Certificates may be acquired in denominations of $5,000 of principal amount or any integral multiples thereof within a maturity. No physical delivery
of the Certificates will be made to the beneficial owners thereof. Principal of, premium, if any, and interest on the Certificates will be payable by
the Paying Agent/Registrar to Cede & Co., which will make distribution of the amounts so paid to the participating members of DTC for subsequent
payment to the beneficial owners of the Certificates. See “THE OBLIGATIONS - Book-Entry-Only System” herein. The initial Paying
Agent/Registrar is The Bank of New York Mellon Trust Company, N.A., Dallas, Texas (see “THE OBLIGATIONS - Paying Agent/Registrar”).
AUTHORITY FOR ISSUANCE. . . The Certificates are issued pursuant to the Constitution and general laws of the State of Texas (the “State”),
particularly Subchapter C of Chapter 271, Texas Local Government Code, as amended, and constitute direct obligations of the City of College Station,
Texas (the “City”), payable from a combination of (i) the levy and collection of a direct and continuing ad valorem tax, levied within the limits
prescribed by law, on all taxable property within the City, and (ii) subordinate lien on and pledge of $1,000 of the surplus revenues of the City’s
combined water, wastewater and electric utility system, as provided in the Certificate Ordinance (see “THE OBLIGATIONS - Authority for Issuance
of the Obligations” and “THE OBLIGATIONS - Security and Source of Payment”).
PURPOSE. . . Proceeds from the sale of the Certificates will be used for (i) streets and roads; (ii) information technology and communications
equipment; (iii) improvements and extensions to the City’s combined waterworks, sewer and electric systems; and (iv) professional services rendered
in relation to such projects and the issuance costs of the Certificates.
CUSIP PREFIX: 194469
MATURITY SCHEDULE & 9 DIGIT CUSIP
See Schedule on page 4
SEPARATE ISSUES . . . The Certificates are being offered by the City concurrently with the issuance of the $6,415,000* City of College Station, Texas, General Obligation Bonds, Series 2023 (the “Bonds”) under a common Official Statement. The Bonds and the Certificates are separate and
distinct securities offerings being issued and sold independently except for this Official Statement, and such Bonds and Certificates are hereinafter
sometimes referred to collectively as the “Obligations.” While the Bonds and Certificates share certain common attributes, each issue is separate
from the other and should be reviewed and analyzed independently, including without limitation the type of obligation being offered, its terms of
payment, the rights of the City to redeem the Obligations of either series, the federal, state or local tax consequences of the purchase, ownership or
disposition of the Obligations and other features.
LEGALITY. . . The Certificates are offered for delivery, when issued, and received by the initial purchaser (the “Initial Purchaser”) and subject to the
opinion of the Attorney General of the State of Texas and the opinion of McCall, Parkhurst & Horton L.L.P., Dallas, Texas, Bond Counsel for the
City (see “APPENDIX C – Form Of Opinion Of Bond Counsel”). Certain legal matters will be passed upon for the City by McCall, Parkhurst &
Horton, L.L.P., Dallas, Texas, Disclosure Counsel for the City.
DELIVERY. . . It is expected that the Certificates will be available for delivery through the services of DTC on or about July 6, 2023.
BIDS DUE THURSDAY, JUNE 8, 2023 AT 10:30 A.M. CDT
* Preliminary, subject to change.
Ratings:
Moody’s: Applied for
S&P: Applied for
See “OTHER INFORMATION –
Ratings” herein
This Preliminary Official Statement and the information contained herein are subject to completion or amendment. These securities may not be sold nor may offers to buy be accepted prior to the time the Official Statement is delivered in final form. Under no circumstances shall this Preliminary Official Statement constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of these securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction.
CUSIP Prefix: 194469(1)
MATURITY SCHEDULE*
$27,495,000*
Certificates of Obligation, Series 2023
Due Interest
Feb. 15 Principal Rate Yield CUSIP
(1)
2024 665,000$
2025 965,000
2026 1,015,000
2027 1,065,000
2028 1,120,000
2029 1,175,000
2030 1,235,000
2031 1,140,000
2032 1,190,000
2033 1,255,000
2034 1,315,000
2035 1,385,000
2036 1,455,000
2037 1,535,000
2038 1,605,000
2039 1,690,000
2040 1,780,000
2041 1,870,000
2042 1,970,000
2043 2,065,000
(1) CUSIP is a registered trademark of the American Bankers Association. CUSIP data herein is provided by CUSIP Global Services,
managed by Standard and Poor’s Financial Services LLC on behalf of the American Bankers Association. This data is not intended to
create a database and does not serve in any way as a substitute for the CUSIP Services. Neither the City nor the Financial Advisor shall
be responsible for the selection or correctness of the CUSIP numbers set forth herein.
OPTIONAL REDEMPTION . . . The City reserves the right, at its option, to redeem Certificates having stated maturities on and after February
15, 2033, in whole or in part in principal amounts of $5,000 or any integral multiple thereof, on February 15, 2032, or any date thereafter, at
the par value thereof plus accrued interest to the date of redemption (see “THE OBLIGATIONS – Optional Redemption”).
MANDATORY SINKING FUND REDEMPTION . . . In addition to the foregoing optional redemption provision, if in connection with the pricing
of the Certificates the principal amounts designated in the Maturity Schedule herein are combined to create Term Certificates, each Term
Certificate shall be subject to mandatory sinking fund redemption commencing on February 15 of the first year which has been combined to
form such Term Certificate and continuing on February 15 in each year thereafter until the stated maturity date of that Term Certificate, and
the amount required to e redeemed in any year shall be equal to the principal amount for such year set forth in the serial maturity schedule
shown above (see ‘THE OBLIGATIONS – Mandatory Sinking Fund Redemption”).
* Preliminary, subject to change.
For purposes of compliance with Rule 15c2-12 of the United States Securities and Exchange Commission, as amended and in effect on the date
hereof (the “Rule”), this document constitutes a Preliminary Official Statement of the City with respect to the Obligations that has been deemed
“final” by the City as of its date except for the omission of no more than the information permitted by the Rule.
This Official Statement, which includes the cover page and the Appendices hereto, does not constitute an offer to sell or the solicitation of an offer to buy in
any jurisdiction to any person to whom it is unlawful to make such offer, solicitation or sale. No dealer, broker, salesperson or other person has been
authorized to give information or to make any representation other than those contained in this Official Statement, and, if given or made, such other information
or representations must not be relied upon.
The information set forth herein has been obtained from the City and other sources believed to be reliable, but such information is not guaranteed as to
accuracy or completeness and is not to be construed as the promise or guarantee of the Financial Advisor or the Initial Purchasers. This Official Statement
contains, in part, estimates and matters of opinion which are not intended as statements of fact, and no representation is made as to the correctness of such
estimates and opinions, or that they will be realized. CUSIP numbers have been assigned to this issue by CUSIP Global Services, and are included solely for
the convenience of the owners of the Obligations. Neither the City, the Financial Advisor nor the Initial Purchasers shall be responsible for the selection or
correctness of the CUSIP numbers shown on the inside cover page.
The information and expressions of opinion contained herein are subject to change without notice, and neither the delivery of this Official Statement nor any
sale made hereunder will, under any circumstances, create any implication that there has been no change in the affairs of the City or other matters described.
sIn connection with this offering, the Initial Purchasers may over-allot or effect transactions which stabilize the market price of the issue at a level above that
which might otherwise prevail in the open market. Such stabilizing, if commenced, may be discontinued at any time.
The Obligations are exempt from registration with the Securities and Exchange Commission and consequently have not been registered therewith. The
registration, qualification, or exemption of the Obligations in accordance with applicable securities law provisions of the jurisdiction in which these securities
have been registered or exempted should not be regarded as a recommendation thereof.
NEITHER THE CITY, ITS FINANCIAL ADVISOR NOR THE INITIAL PURCHASERS MAKE ANY REPRESENTATION OR WARRANTY WITH RESPECT
TO THE INFORMATION CONTAINED IN THIS OFFICIAL STATEMENT REGARDING THE DEPOSITORY TRUST COMPANY (“DTC”) OR ITS BOOK-
ENTRY-ONLY SYSTEM.
Any information and expressions of opinion herein contained are subject to change without notice, and neither the delivery of this Official Statement nor any
sale made hereunder shall, under any circumstances, create any implication that there has been no change in the affairs of the City or other matters described
herein since the date hereof.
THIS OFFICIAL STATEMENT CONTAINS “FORWARD-LOOKING” STATEMENTS WITHIN THE MEANING OF SECTION 21E OF THE SECURITIES
EXCHANGE ACT OF 1934, AS AMENDED. SUCH STATEMENTS MAY INVOLVE KNOWN AND UNKNOWN RISKS, UNCERTAINTIES AND OTHER
FACTORS WHICH MAY CAUSE THE ACTUAL RESULTS, PERFORMANCE AND ACHIEVEMENTS TO BE DIFFERENT FROM THE FUTURE RESULTS,
PERFORMANCE AND ACHIEVEMENTS EXPRESSED OR IMPLIED BY SUCH FORWARD-LOOKING STATEMENTS. INVESTORS ARE CAUTIONED
THAT THE ACTUAL RESULTS COULD DIFFER MATERIALLY FROM THOSE SET FORTH IN THE FORWARD-LOOKING STATEMENTS. See “OTHER
INFORMATION – FORWARD-LOOKING STATEMENTS DISCLAIMER” herein.
References to web site addresses presented herein are for informational purposes only and may be in the form of a hyperlink solely for the reader’s convenience.
Unless specified otherwise, such web sites and the information or links contained therein are not incorporated into, and are not part of, this final official
statement for purposes of, and as that term is defined in, SEC Rule 15c2-12.
TABLE OF CONTENTS
MATURITY SCHEDULE* ............................................. 2
MATURITY SCHEDULE* ............................................. 4
OFFICIAL STATEMENT SUMMARY ......................... 7
SELECTED FINANCIAL INFORMATION ............................. 8
GENERAL FUND CONSOLIDATED STATEMENT SUMMARY 8
UTILITY SYSTEM CONDENSED STATEMENT OF
OPERATIONS .......................................................... 9
CITY OFFICIALS, STAFF AND CONSULTANTS ..... 9
ELECTED OFFICIALS ...................................................... 9
SELECTED ADMINISTRATIVE STAFF .............................. 10
CONSULTANTS AND ADVISORS ..................................... 10
INTRODUCTION .......................................................... 11
THE OBLIGATIONS .................................................... 11
TAX INFORMATION ................................................... 15
TABLE 1 - VALUATION, EXEMPTIONS AND GENERAL
OBLIGATION DEBT ............................................... 21
TABLE 2 - TAXABLE ASSESSED VALUATIONS BY
CATEGORY ........................................................... 22
TABLE 3 - VALUATION AND GENERAL OBLIGATION
DEBT HISTORY ..................................................... 23
TABLE 4 - TAX RATE, LEVY AND COLLECTION
HISTORY .............................................................. 23
TABLE 5 - TEN LARGEST TAXPAYERS ......................... 23
TABLE 6 - TAX ADEQUACY ........................................ 24
TABLE 7 - ESTIMATED OVERLAPPING DEBT ................ 24
DEBT INFORMATION ................................................. 25
TABLE 8 - PRO-FORMA AD VALOREM TAX DEBT
SERVICE REQUIREMENTS ...................................... 25
TABLE 9 - INTEREST AND SINKING FUND BUDGET
PROJECTION ......................................................... 26
TABLE 10 – SELF-SUPPORTING DEBT .......................... 26
TABLE 11 - AUTHORIZED BUT UNISSUED TAX BONDS . 26
ANTICIPATED ISSUANCE OF GENERAL OBLIGATION
DEBT ................................................................... 26
OTHER OBLIGATIONS ................................................... 27
PENSION FUND ............................................................ 27
OTHER POST-EMPLOYMENT BENEFITS ......................... 30
FINANCIAL INFORMATION ..................................... 34
TABLE 12 - GENERAL FUND REVENUES AND
EXPENDITURE HISTORY ........................................ 34
TABLE 13 - MUNICIPAL SALES TAX HISTORY ............. 35
FINANCIAL POLICIES .................................................... 35
THE COMBINED UTILITY SYSTEM ....................... 36
WATERWORKS SYSTEM ............................................... 36
WASTEWATER SYSTEM ............................................... 37
ELECTRIC SUPPLY SOURCE .......................................... 37
TABLE 14 - HISTORICAL UTILITY USERS ...................... 38
TABLE 15 - TEN LARGEST UTILITY CUSTOMERS .......... 38
TABLE 16 - CONDENSED STATEMENT OF OPERATIONS . 39
TABLE 17 – VALUE OF THE SYSTEM ............................. 39
TABLE 18 – CITY’S EQUITY IN THE SYSTEM ................. 39
TABLE 19 – UTILITY REVENUE BOND AND SYSTEM
SUPPORTED GENERAL OBLIGATION DEBT
SERVICE .............................................................. 39
INVESTMENTS ............................................................. 40
LEGAL INVESTMENTS .................................................. 40
INVESTMENT POLICIES ................................................ 41
ADDITIONAL PROVISIONS ............................................ 42
CITY’S INVESTMENT POLICY ....................................... 42
TABLE 20 - CURRENT INVESTMENTS ............................ 42
TAX MATTERS............................................................. 43
CONTINUING DISCLOSURE OF INFORMATION 45
OTHER INFORMATION ............................................. 46
RATINGS ..................................................................... 46
LITIGATION ................................................................. 46
REGISTRATION AND QUALIFICATION OF OBLIGATIONS
FOR SALE ............................................................. 46
LEGAL INVESTMENTS AND ELIGIBILITY TO SECURE PUBLIC
FUNDS IN TEXAS ................................................... 46
AUTHENTICITY OF FINANCIAL DATA AND OTHER
INFORMATION ...................................................... 47
FINANCIAL ADVISOR ................................................... 47
FORWARD-LOOKING STATEMENTS .............................. 47
INITIAL PURCHASER .................................................... 47
CERTIFICATION OF THE OFFICIAL STATEMENT AND NO-
LITIGATION CERTIFICATE ...................................... 48
MISCELLANEOUS ......................................................... 48
APPENDICES
GENERAL INFORMATION REGARDING THE CITY ........................ A
EXCERPTS FROM THE ANNUAL FINANCIAL REPORT .................. B
FORMS OF OPINIONS OF BOND COUNSEL .................................. C
The cover page hereof, this page, the appendices included herein and
any addenda, supplement or amendment hereto, are part of the
Official Statement.
7
OFFICIAL STATEMENT SUMMARY
This summary is subject in all respects to the more complete information and definitions contained or incorporated in this Official Statement.
The offering of the Obligations to potential investors is made only by means of this entire Official Statement. No person is authorized to
detach this summary from this Official Statement or to otherwise use it without the entire Official Statement.
THE CITY ............................. The City of College Station, Texas (the “City”) is a political subdivision and a home-rule city of the State,
located in Brazos County, Texas. The City covers approximately 51.6 square miles (see “INTRODUCTION -
Description of The City”).
THE OBLIGATIONS .............. The Bonds are issued as 6,415,000* City of College Station, Texas General Obligation Bonds, Series 2023.
The Bonds are issued as serial bonds maturing on February 15 in each of the years 2024–2043, inclusive (see
“THE OBLIGATIONS – General Description”).
The Certificates are issued as $27,495,000* City of College Station, Texas Certificates of Obligation, Series
2022. The Certificates are issued as serial certificates maturing on February 15 in each of the years 2024-2043,
inclusive (see “THE OBLIGATIONS - General Description”).
The Bonds and the Certificates are sometimes referred to collectively herein as the “Obligations”.
PAYMENT OF INTEREST ...... Interest on the Obligations will accrue from the date of delivery, and will be payable February 15 and August
15 of each year commencing February 15, 2024 until maturity or prior redemption and will be calculated on
the basis of a 360-day year consisting of twelve 30-day months (see “THE OBLIGATIONS - General
Description”).
AUTHORITY FOR ISSUANCE . The Bonds are authorized and issued pursuant to the Constitution and general laws of the State, particularly
Chapters 1241 and 1331, Texas Government Code, as amended, an election held within the City on November
8, 2022 and an ordinance to be passed by the City Council of the City (the “Bond Ordinance”) (see “THE
OBLIGATIONS - Authority for Issuance”).
The Certificates are issued pursuant to the Constitution and general laws of the State, particularly Subchapter
C of Chapter 271, Texas Local Government Code, as amended, and an ordinance to be passed by the City
Council of the City (the “Certificate Ordinance”) (see “THE OBLIGATIONS – Authority of Issuance”).
SECURITY FOR THE BONDS .. The Bonds are direct obligations of the City payable from the levy and collection of a direct and continuing ad
valorem tax, within the limits prescribed by law, on all taxable property located within the City, as provided in
the Bond Ordinance (see “THE OBLIGATIONS - Security and Source of Payment”).
SECURITY FOR THE
CERTIFICATES ..................... The Certificates constitute direct obligations of the City, secured by and payable from a combination of (i) the
levy and collection of an annual direct and continuing ad valorem tax, within the limits prescribed by law, on all
taxable property located within the City, and (ii) a subordinate lien on and pledge of $1,000 of the surplus revenues
derived from the City’s combined water, wastewater and electric utility system (see “THE OBLIGATIONS -
Security and Source of Payment”).
Article XI, Section 5, of the Texas Constitution is applicable to the City, and limits its maximum ad valorem tax
rate to $2.50 per $100 Taxable Assessed Valuation for all City purposes. The Home-Rule Charter of the City
adopts the constitutionally authorized maximum tax rate of $2.50 per $100 Taxable Assessed Valuation.
REDEMPTION ....................... The City reserves the right, at its option, to redeem Obligations having stated maturities on and after February
15, 2033, in whole or in part in principal amounts of $5,000 or any integral multiple thereof, on February 15,
2032, or any date thereafter, at the par value thereof plus accrued interest to the date of redemption (see “THE
OBLIGATIONS – Optional Redemption”).
TAX EXEMPTION .................. In the opinion of Bond Counsel, the interest on the Obligations will be excludable from gross income for federal
income tax purposes under existing law. See “TAX MATTERS” for a discussion of the opinion of Bond Counsel
and Exhibit C.
USE OF PROCEEDS ............... Proceeds from the sale of the Bonds will be used for (i) a new fire station and acquisition of fire trucks and
public safety equipment; transportation and mobility infrastructure; parks and recreational facilities, and (ii)
professional services rendered in relation to such projects and issuance costs of the Bonds.
Proceeds from the sale of the Certificates will be used for (i) streets and roads; (ii) information technology and
communication equipment; (iii) improvements and extensions to the City’s combined waterworks, sewer and
electric systems; and (iv) professional services rendered in relation to such projects and the issuance costs of
the Certificates
* Preliminary, subject to change.
8
RATINGS ............................. The presently outstanding tax supported debt of the City are rated “Aa1” by Moody's Investors Service, Inc.
(“Moody's”) and “AA+” by Standard & Poor's Ratings Services, a Standard & Poor’s Financial Services LLC
business (“S&P”), without regard to credit enhancement (see “OTHER INFORMATION – Ratings”).
Applications have been made to Moody’s and S&P for contract ratings on the Obligations.
BOOK-ENTRY-ONLY
SYSTEM .............................. The definitive Obligations will be initially registered and delivered only to Cede & Co., the nominee of The
Depository Trust Company (“DTC”) pursuant to the Book-Entry-Only System described herein. Beneficial
ownership of the Obligations may be acquired in denominations of $5,000 of principal amount or any integral
multiples thereof. No physical delivery of the Obligations will be made to the beneficial owners thereof.
Principal of and interest on the Obligations will be payable by the Paying Agent/Registrar to Cede & Co.,
which will make distribution of the amounts so paid to the participating members of DTC for subsequent
payment to the beneficial owners of the Obligations (see “THE OBLIGATIONS - Book-Entry-Only System”).
PAYMENT RECORD .............. Other than a late payment on the City’s Certificates of Obligation, Series 2002 that occurred in 2003, the City
has never defaulted in payment of its general obligation tax debt.
SELECTED FINANCIAL INFORMATION
Ratio Tax
Fiscal Per Capita Per Capita Debt to
Year Estimated Taxable Taxable Net Net Taxable
Ended City Assessed Assessed Ad Valorem Ad Valorem Assessed
9/30 Population
(1) Valuation(2)Valuation Tax Debt
(3)Tax Debt Valuation
2019 121,150 9,487,074,377$ 78,308 $ 197,690,000$ 1,632 $ 2.08% 99.22%
2020 122,949 9,979,431,357 81,167 183,525,000 1,493 1.84% 98.78%
2021 124,710 10,079,470,032 80,823 194,901,488 1,563 1.93% 99.27%
2022 124,866 10,483,884,379 83,961 220,478,586 1,766 2.10% 98.87%
2023 126,056 11,964,153,544 94,911 218,520,275
(4)1,734 (4)1.83%(4)90.32%(5)
Collection
Total
Percent
_______________
(1) Source: The City.
(2) As reported by the Brazos Central Appraisal District; subject to change during the ensuing year.
(3) Payable from ad valorem taxes. Does not include self-supporting debt. See “Table 10 – Self-Supporting Debt” for detail on the City’s
self-supported tax debt.
(4) Projected, includes the Obligations. Preliminary, subject to change.
(5) Collections as of March 15, 2023. A portion of the City’s taxpayer base has elected to provide split payments to the City which will be
due in part on June 30.
GENERAL FUND CONSOLIDATED STATEMENT SUMMARY
2022 2021 2020 2019 2018
Beginning Balance 48,320,092 $ 35,742,062 $ 28,360,567 $ 26,790,569 $ 22,514,523 $
Total Revenue 87,126,314 85,609,997 74,456,870 71,180,329 67,484,355
Total Expenditures 81,696,727 87,680,867 85,856,082 87,077,758 82,128,812
Other Financing Sources 22,723,626 16,166,209 18,780,707 17,467,427 16,214,241
Prior Period Adjustment - (1,517,309) - - 2,706,262
Ending Balance 76,473,305 $ 48,320,092 $ 35,742,062 $ 28,360,567 $ 26,790,569 $
For Fiscal Year Ended September 30,
9
UTILITY SYSTEM CONDENSED STATEMENT OF OPERATIONS
2022 2021 2020 2019 2018
Revenues:
Electric 111,860,621 $ 102,794,575 $ 100,369,952 $ 102,443,382 $ 102,511,712 $
Water and Wastewater 43,115,216 37,512,695 37,628,189 34,313,203 33,602,131
Interest 621,501 216,542 1,322,832 2,654,945 1,262,551
Other 4,520,337 4,508,068 4,400,186 3,558,330 2,520,335
Total Revenues 160,117,675 $ 145,031,880 $ 143,721,159 $ 142,969,860 $ 139,896,729 $
Expenses:
Total Expenses 103,835,235 $ 133,786,264 $ (1)80,521,607 $ 81,725,180 $ 77,828,073 $
Net Available for Debt Service 56,282,440 $ 11,245,616 $ 63,199,552 $ 61,244,680 $ 62,068,656 $
Water Average Montly Consumption (MGW) 463,182 381,256 361,040 369,689 383,830
Wastewater Average Daily Treatment (000's gal.) 8,389 9,430 7,500 8,239 7,468
Electric Average Monthly Consumption (KWH) 77,554,460 71,670,181 70,516,104 70,995,416 72,239,944
For Fiscal Year Ended September 30,
(1) The increase in expenses relative to prior years was due predominantly for costs associated with providing electricity during winter
storm Uri in February, 2021.
CITY OFFICIALS, STAFF AND CONSULTANTS
ELECTED OFFICIALS
Term
Name Position Expiration Occupation
John Nichols Mayor 10.5 Years November 2026 Retired Professor
Mark Smith Council Member 1 4 Months November 2026 Retired Public Servant
William Wright Council Member 2 4 Months November 2026 Production Manager
Linda Harvell Council Member 3 6.5 Years November 2024 Business Owner
Elizabeth Cunha Council Member 4 2.5 Years November 2024 Education
Bob Yancy Council Member 5 4 Months November 2026 Retired CEO
Dennis Maloney Council Member 6 13.5 Years November 2024 Business Owner
Length of
Service
________________
Note: After the November 2024 elections for Places 4 and 6, these positions will serve 4 year terms resulting in all council positions then
serving 4 year terms moving forward.
(Remainder of page intentionally left blank)
10
SELECTED ADMINISTRATIVE STAFF
Name Position
Bryan Woods City Manager 4.5
(1)
Jeff Capps Deputy City Manager 30.0
(2)
Jeff Kersten Assistant City Manager, CFO 32.0
(3)
Jennifer Prochazka Assistant City Manager 23.0
(4)
Adam C. Falco City Attorney 16.0
(5)
Tanya D. Smith City Secretary 15.0
(6)
Ty Elliott Internal Auditor 16.0
Mary Ellen Leonard Director of Finance 7.0
Gary Mechler Director of Water Services 5.0
(7)
Timothy Crabb Director of Electric Utility 16.0
(8)
Samuel Rivera Chief Information Officer 4.0
(9)
Stephen Wright Director of Parks and Recreation 2.5
(10)
Michael Ostrowski Director of Planning and Development Services 2.5
(11)
Emily Fisher Director of Public Works 10.0
(12)
Alison Pond Director of Human Resources 14.5
Colin Killian Public Communications Director 13.0
(13)
Length of Service
to the City
(in Years)
________________
(1) New hire as City Manager in December 2018.
(2) Assistant City Manager since June 2014; previously served as Chief of Police.
(3) Assistant City Manager and Chief Financial Officer since January 2014; previously served as Executive Director of Business Services
and Chief Financial Officer.
(4) Assistant City Manager since 2020, previously served as Planning and Development Services Director.
(5) City Attorney since 2022, previously served as Senior City Attorney since 2009.
(6) Appointed City Secretary in July 2017; previously served as Deputy City Secretary since 2008.
(7) New hire Director of Water Services in August 2018.
(8) Director of Electric Utility since December 2012; previously served as Assistant Director of Electric Utility.
(9) New hire as Assistant Director of Information Technology in July 2019. Appointed CIO in December 2021.
(10) New hire as Director of Parks and Recreation in December 2020.
(11) New hire as Director of Planning and Development in December 2020.
(12) Director of Public Works since 2022; previously served as CIP Manager.
(13) Public Communications Director since 2023, previously served as interim director.
CONSULTANTS AND ADVISORS
Auditors ....................................................................................................................................................................... FORVIS LLP
Houston, Texas
Bond Counsel ............................................................................................................................. McCall, Parkhurst & Horton L.L.P.
Dallas, Texas
Financial Advisor ............................................................................................................................................. Hilltop Securities Inc.
Dallas, Texas
For additional information regarding the City, please contact:
Jeff Kersten, CFO
Assistant City Manager
City of College Station
1101 Texas Avenue
College Station, Texas 77840
(979) 764-3555 Phone
or
Marti Shew
Managing Director
Hilltop Securities Inc.
717 N Harwood, Suite 3400
Dallas, Texas 75201
(214) 953-4000
11
PRELIMINARY OFFICIAL STATEMENT
RELATING TO
CITY OF COLLEGE STATION, TEXAS
(a Home-Rule City located in Brazos County, Texas)
$6,415,000*
GENERAL OBLIGATION BONDS, SERIES 2023
$27,495,000*
CERTIFICATES OF OBLIGATION, SERIES 2023
INTRODUCTION
This Official Statement, which includes the cover pages and Appendices hereto, provides certain information regarding the issuance of the
$6,415,000* General Obligation Bonds, Series 2023 (the “Bonds”) and $27,495,000* City of College Station, Texas Certificates of Obligation,
Series 2023 (the “Certificates,” and together with the Bonds, herein collectively referred to as the “Obligations”). Capitalized terms used in this
Official Statement have the same meanings assigned to such terms in the respective ordinances (the “Bond Ordinance” with respect to the
Bonds and the “Certificate Ordinance” with respect to the Certificates), each to be adopted by the City Council of the City on the date of the
sale of the Obligations and which will authorize the issuance of the Bonds and the Certificates, respectively. The Bond Ordinance and the
Certificate Ordinance are herein collectively referred to as the “Ordinances”.
There follows in this Official Statement descriptions of the Obligations and certain information regarding the City and its finances. All
descriptions of documents contained herein are only summaries and are qualified in their entirety by reference to each such document. Copies
of such documents may be obtained from the City's Financial Advisor, Hilltop Securities Inc., Houston, Texas.
DESCRIPTION OF THE CITY . . . The City is a political subdivision and municipal corporation of the State of Texas (the “State”), duly organized
and existing under the laws of the State, including the City's Home Rule Charter. The City was incorporated in October 1938, and first
adopted its Home-Rule Charter in October 1938, which was last amended in November 2021. The City operates under a Council/City
Manager form of government with a City Council comprised of the Mayor and six Council members. Some of the services that the City
provides are: public safety (police and fire protection), highways and streets, electric, water and sanitary sewer utilities, health and social
services, culture-recreation, public improvements, planning and zoning, and general administrative services. The 2020 Census population
was 120,511 and the current estimated population of the City is 126,056. The City covers approximately 51.6 square miles.
THE OBLIGATIONS
GENERAL DESCRIPTION . . . The Obligations will bear interest from the date of delivery to the Initial Purchaser and mature on February 15
in each of the years and in the amounts shown on pages 2 and 4 hereof. Interest on the Obligations will be calculated on the basis of a 360-
day year consisting of twelve 30-day months and will be payable February 15 and August 15 of each year commencing February 15, 2024
until maturity or prior redemption. The definitive Obligations will be issued only in fully registered form in any integral multiple of $5,000
in principal amount for any one maturity and will be initially registered and delivered only to Cede & Co., the nominee of The Depository
Trust Company, New York, New York (“DTC”) pursuant to the Book-Entry-Only System described herein. No physical delivery of the
Obligations will be made to the beneficial owners thereof. Principal of and interest on the Obligations will be payable by the Paying
Agent/Registrar to Cede & Co., which will make distribution of the amounts so paid to the participating members of DTC for subsequent
payment to the beneficial owners of the Obligations (see “Book-Entry-Only System”).
AUTHORITY FOR ISSUANCE OF THE OBLIGATIONS. . . The Bonds are being authorized and issued pursuant to the Constitution and general
laws of the State, particularly Chapters 1251 and 1331, Texas Government Code, as amended, an election held in the City on November 8,
2022 (the “Election”), and the Bond Ordinance. (see “Table 11 - Authorized But Unissued General Obligation Bonds”).
The Certificates are being issued pursuant to the Constitution and general laws of the State of Texas, particularly Subchapter C of Chapter
271, Texas Local Government Code, as amended, and the Certificate Ordinance.
SECURITY AND SOURCE OF PAYMENT . . . The Obligations constitute direct obligations of the City payable from an annual direct and
continuing ad valorem tax levied against all taxable property within the City, within the limits prescribed by law. In addition, the Certificates
are additionally secured by and payable from a subordinate lien on and pledge of $1,000 of the surplus revenues of the City’s combined
water, wastewater and electric utility system.
* Preliminary, subject to change.
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TAX RATE LIMITATION . . . All taxable property within the City is subject to the assessment, levy and collection by the City of a continuing,
direct annual ad valorem tax sufficient to provide for the payment of principal of and interest on all ad valorem tax debt within the limits prescribed
by law. Article XI, Section 5, of the Texas Constitution is applicable to the City, and limits its maximum ad valorem tax rate to $2.50 per $100
Taxable Assessed Valuation for all City purposes. The Home-Rule Charter of the City adopts the constitutionally authorized maximum tax rate
of $2.50 per $100 Taxable Assessed Valuation. Administratively, the Attorney General of the State of Texas will permit allocation of $1.50 of
the $2.50 maximum tax rate for all debt service for obligations payable from annual ad valorem property taxes, as calculated at the time of
issuance.
OPTIONAL REDEMPTION . . . The City reserves the right, at its option, to redeem Obligations having stated maturities on and after February
15, 2033, in whole or in part in principal amounts of $5,000 or any integral multiple thereof, on February 15, 2032, or any date thereafter, at
the par value thereof plus accrued interest to the date of redemption. If less than all of the Obligations are to be redeemed, the City shall
determine the Obligations, or portions thereof, within such maturity to be redeemed. If Obligations (or any portion of the principal sum
thereof) shall have been called for redemption and notice of such redemption shall have been given, such Obligations (or the principal amount
thereof to be redeemed) shall become due and payable on such redemption date and interest thereon shall cease to accrue from and after the
redemption date, provided funds for the payment of the redemption price and accrued interest thereon are held by the Paying Agent/Registrar
on the redemption date.
MANDATORY SINKING FUND REDEMPTION . . . In the event any of the Obligations are structured as “term” Obligations, such term Obligations
will be subject to mandatory sinking fund redemption in accordance with the applicable provisions of the Ordinances, which provisions will
be included in the final Official Statement.
NOTICE OF REDEMPTION . . . Not less than 30 days prior to a redemption date for the Obligations, the City shall cause a notice of redemption
to be sent by United States mail, first class, postage prepaid, to the registered owners of the Obligations to be redeemed, in whole or in part,
at the address of the registered owner appearing on the registration books of the Paying Agent/Registrar. ANY NOTICE SO MAILED
SHALL BE CONCLUSIVELY PRESUMED TO HAVE BEEN DULY GIVEN, WHETHER OR NOT THE REGISTERED OWNER
RECEIVES SUCH NOTICE. NOTICE HAVING BEEN SO GIVEN, THE OBLIGATIONS CALLED FOR REDEMPTION SHALL
BECOME DUE AND PAYABLE ON THE SPECIFIED REDEMPTION DATE, AND NOTWITHSTANDING THAT ANY
OBLIGATION OR PORTION THEREOF HAS NOT BEEN SURRENDERED FOR PAYMENT, INTEREST ON SUCH OBLIGATION
OR PORTION THEREOF SHALL CEASE TO ACCRUE.
With respect to any optional redemption of the Obligations, unless certain prerequisites to such redemption required by the Ordinances have
been met and moneys sufficient to pay the principal of and premium, if any, and interest on the Obligations to be redeemed shall have been
received by the Paying Agent/Registrar prior to the giving of such notice of redemption, such notice shall state that said redemption may, at
the option of the City, be conditional upon the satisfaction of such prerequisites and receipt of such moneys by the Paying Agent/Registrar
on or prior to the date fixed for such redemption, or upon any prerequisite set forth in such notice of redemption. If a conditional notice of
redemption is given and such prerequisites to the redemption and sufficient moneys are not received, such notice shall be of no force and
effect, the City shall not redeem such Obligations and the Paying Agent/Registrar shall give notice, in the manner in which the notice of
redemption was given, to the effect that the Obligations have not been redeemed.
BOOK-ENTRY-ONLY SYSTEM . . . This section describes how ownership of the Obligations is to be transferred and how the principal of and
interest on the Obligations are to be paid to and credited by the DTC while the Obligations are registered in its nominee name. The
information in this section concerning DTC and the Book-Entry-Only System has been provided by DTC for use in disclosure documents
such as this Official Statement. The City, the Financial Advisor and the Underwriters believe the source of such information to be reliable,
but take no responsibility for the accuracy or completeness thereof.
The City, the Financial Advisor and the Initial Purchaser cannot and do not give any assurance that (1) DTC will distribute payments of debt
service on the Obligations, or redemption or other notices, to DTC Participants, (2) DTC Participants or others will distribute debt service
payments paid to DTC or its nominee (as the registered owner of the Obligations), or redemption or other notices, to the Beneficial Owners,
or that they will do so on a timely basis, or (3) DTC will serve and act in the manner described in this Official Statement. The current rules
applicable to DTC are on file with the Securities and Exchange Commission, and the current procedures of DTC to be followed in dealing
with DTC Participants are on file with DTC.
DTC will act as securities depository for the Obligations. The Obligations will be issued as fully-registered securities in the name of Cede
& Co. (DTC’s partnership nominee) or such other name as may be requested by an authorized representative of DTC. One fully-registered
certificate for each maturity will be issued for the Obligations, in the aggregate principal amount of such maturity, and will be deposited with
DTC.
DTC, the world’s largest securities depository, is a limited-purpose trust company organized under the New York Banking Law, a “banking
organization” within the meaning of the New York Banking Law, a member of the Federal Reserve System, a “clearing corporation” within
the meaning of the New York Uniform Commercial Code, and a “clearing agency” registered pursuant to the provisions of Section 17A of
the Securities Exchange Act of 1934. DTC holds and provides asset servicing for over 3.5 million issues of U.S. and non-U.S. equity,
corporate and municipal debt issues, and money market instrument from over 100 countries that DTC’s participants (“Direct Participants”)
deposit with DTC. DTC also facilitates the post-trade settlement among Direct Participants of sales and other securities transactions in
deposited securities through electronic computerized book-entry transfers and pledges between Direct Participants’ accounts. This eliminates
the need for physical movement of securities certificates. Direct Participants include both U.S. and non-U.S. securities brokers and dealers,
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banks, trust companies, clearing corporations, and certain other organizations. DTC is a wholly-owned subsidiary of The Depository Trust
& Clearing Corporation (“DTCC”). DTCC is the holding company for DTC, National Securities Clearing Corporation, and Fixed Income
Clearing Corporation, all of which are registered clearing agencies. DTCC is owned by the users of its regulated subsidiaries. Access to the
DTC system is also available to others such as both U.S. and non-U.S. securities brokers and dealers, banks, trust companies, and clearing
corporations that clear through or maintain a custodial relationship with a Direct Participant, either directly or indirectly (“Indirect
Participants”). Direct Participants and Indirect Participants are referred to collectively herein as “Participants”. DTC is rated AA+ by
Standard and Poor’s. The DTC Rules applicable to its Participants are on file with the Securities and Exchange Commission. More
information about DTC can be found at www.dtcc.com.
Purchases of Obligations under the DTC system must be made by or through Direct Participants, which will receive a credit for such purchases
on DTC's records. The ownership interest of each actual purchaser of each Obligations (“Beneficial Owner”) is in turn to be recorded on the
Participants’ records. Beneficial Owners will not receive written confirmation from DTC of their purchase. Beneficial Owners are, however,
expected to receive written confirmations providing details of the transaction as well as periodic statements of their holdings, from the
Participant through which the Beneficial Owner entered into the transaction. Transfers of ownership interests in the Obligations are to be
accomplished by entries made on the books of Participants acting on behalf of Beneficial Owners. Beneficial Owners will not receive
certificates representing their ownership interests in the Obligations, except in the event that use of the book-entry system described herein
is discontinued.
To facilitate subsequent transfers, all Obligations deposited by Direct Participants with DTC are registered in the name of DTC’s partnership
nominee, Cede & Co., or such other name as may be requested by an authorized representative of DTC. The deposit of Obligations with
DTC and their registration in the name of Cede & Co. or such other DTC nominee do not effect any change in beneficial ownership. DTC
has no knowledge of the actual Beneficial Owners of the Obligations; DTC’s records reflect only the identity of the Direct Participants to
whose accounts such Obligations are credited, which may or may not be the Beneficial Owners. The Participants will remain responsible for
keeping account of their holdings on behalf of their customers.
Conveyance of notices and other communications by DTC to Direct Participants, by Direct Participants to Indirect Participants, and by Direct
Participants and Indirect Participants to Beneficial Owners will be governed by arrangements among them, subject to any statutory or
regulatory requirements as may be in effect from time to time. Beneficial Owners of Obligations may wish to take certain steps to augment
the transmission to them of notices of significant events with respect to the Obligations, such as redemptions, tenders, defaults, and proposed
amendments to the Obligation documents. For example, Beneficial Owners of Obligations may wish to ascertain that the nominee holding
the Obligations for their benefit has agreed to obtain and transmit notices to Beneficial Owners. In the alternative, Beneficial Owners may
wish to provide their names and addresses to the registrar and request that copies of notices be provided directly to them.
Redemption notices shall be sent to DTC. If less than all of the Obligations within a maturity are being redeemed, DTC’s practice is to
determine by lot the amount of the interest of each Direct Participant in such maturity to be redeemed.
Neither DTC nor Cede & Co. (nor any other DTC nominee) will consent or vote with respect to Obligations unless authorized by a Direct
Participant in accordance with DTC’s Procedures. Under its usual procedures, DTC mails an Omnibus Proxy to the City as soon as possible
after the record date. The Omnibus Proxy assigns Cede & Co.’s consenting or voting rights to those Direct Participants to whose accounts
Obligations are credited on the record date (identified in a listing attached to the Omnibus Proxy).
Payments on the Obligations will be made to Cede & Co., or such other nominee as may be requested by an authorized representative of
DTC. DTC’s practice is to credit Direct Participants’ accounts upon DTC’s receipt of funds and corresponding detail information from the
City and the Paying Agent/Registrar, on payable date in accordance with their respective holdings shown on DTC’s records. Payments by
Participants to Beneficial Owners will be governed by standing instructions and customary practices, as is the case with securities held for
the accounts of customers in bearer form or registered in “street name,” and will be the responsibility of such Participant and not of DTC nor
its nominee, the Paying Agent/Registrar, or the City, subject to any statutory or regulatory requirements as may be in effect from time to
time. Payment of redemption proceeds, principal and interest payments to Cede & Co. (or such other nominee as may be requested by an
authorized representative of DTC) is the responsibility of the City and the Paying Agent/Registrar. Disbursement of such payments to Direct
Participants will be the responsibility of DTC, and reimbursement of such payments to the Beneficial Owners will be the responsibility of
Participants.
DTC may discontinue providing its services as depository with respect to the Obligations at any time by giving reasonable notice to the City
and the Paying Agent/Registrar. Under such circumstances, in the event that a successor depository is not obtained, Obligations are required
to be printed and delivered.
The City may decide to discontinue use of the system of book-entry transfers through DTC (or a successor securities depository). In that event,
Obligations will be printed and delivered.
Use of Certain Terms in Other Sections of this Official Statement. In reading this Official Statement it should be understood that while the
Obligations are in the Book-Entry-Only System, references in other sections of this Official Statement to registered owners should be read to
include the person for which the Participant acquires an interest in the Obligations, but (i) all rights of ownership must be exercised through DTC
and the Book-Entry-Only System, and (ii) except as described above, notices that are to be given to registered owners under the Ordinances will
be given only to DTC.
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Information concerning DTC and the Book-Entry System has been obtained from DTC and is not guaranteed as to accuracy or completeness by,
and is not to be construed as a representation by the City or the Initial Purchaser.
PAYING AGENT/REGISTRAR . . . The initial Paying Agent/Registrar is The Bank of New York Mellon Trust Company, N.A., Dallas, Texas. In
the Ordinances, the City retains the right to replace the Paying Agent/Registrar. The City covenants to maintain and provide a Paying
Agent/Registrar at all times until the Obligations are duly paid and any successor Paying Agent/Registrar must be a bank, trust company, financial
institution, or other entity duly qualified and legally authorized to serve as and perform the duties and services of Paying Agent/Registrar for the
Obligations. Upon any change in the Paying Agent/Registrar for the Obligations, the City will promptly cause a written notice thereof to be sent
to each registered owner of the Obligations by United States mail, first class, postage prepaid, which notice will also include the address of the
new Paying Agent/Registrar.
TRANSFER, EXCHANGE AND REGISTRATION . . . In the event the Book-Entry-Only System should be discontinued, the Obligations may be
transferred and exchanged on the registration books of the Paying Agent/Registrar only upon presentation and surrender thereof to the Paying
Agent/Registrar and such transfer or exchange will be without expense or service charge to the registered owner, except for any tax or other
governmental charges required to be paid with respect to such registration, exchange and transfer. Obligations may be assigned by the execution
of an assignment form on the respective Obligations or by other instrument of transfer and assignment acceptable to the Paying Agent/Registrar.
New Obligations will be delivered by the Paying Agent/Registrar, in lieu of the Obligations being transferred or exchanged, at the corporate
trust office of the Paying Agent/Registrar, or sent by United States mail, first class, postage prepaid, to the new registered owner or his designee.
To the extent possible, new Obligations issued in an exchange or transfer of Obligations will be delivered to the registered owner or assignee of
the registered owner in not more than three business days after the receipt of the Obligations to be canceled, and the written instrument of transfer
or request for exchange duly executed by the registered owner or his duly authorized agent, in form satisfactory to the Paying Agent/Registrar.
New Obligations registered and delivered in an exchange or transfer will be in any integral multiple of $5,000 for any one maturity and for a like
aggregate principal amount as the Obligations surrendered for exchange or transfer. See “Book-Entry-Only System” herein for a description of
the system to be utilized initially in regard to ownership and transferability of the Obligations. Neither the City nor the Paying Agent/Registrar
will be required to transfer or exchange any Obligation called for redemption, in whole or in part, within 45 days of the date fixed for redemption;
provided, however, such limitation of transfer will not be applicable to an exchange by the registered owner of the uncalled balance of a
Obligation.
RECORD DATE FOR INTEREST PAYMENT . . . The record date (“Record Date”) for determining the person to whom the interest is payable on the
Obligations on any interest payment date means the close of business on the last business day of the preceding month.
In the event of a non-payment of interest on a scheduled payment date, and for 30 days thereafter, a new record date for such interest payment (a
“Special Record Date”) will be established by the Paying Agent/Registrar, if and when funds for the payment of such interest have been received
from the City. Notice of the Special Record Date and of the scheduled payment date of the past due interest (a “Special Payment Date,” which
will be 15 days after the Special Record Date) will be sent at least five days prior to the Special Record Date by United States mail, first class,
postage prepaid, to the address of each Holder of an Obligation appearing on the registration books of the Paying Agent/Registrar at the close of
business on the day next preceding the date of mailing of such notice.
DEFEASANCE . . . The Ordinances provide for the defeasance of the Obligations when the payment of the principal of and premium, if any, on
the Obligations, plus interest thereon to the due date thereof (whether such due date be by reason of maturity, redemption, or otherwise), is
provided by irrevocably depositing with a paying agency, in trust (1) money sufficient to make such payment or (2) Defeasance Securities,
certified by an independent public accounting firm of national reputation to mature as to principal and interest in such amounts and at such times
to insure the availability, without reinvestment, of sufficient money to make such payment, and all necessary and proper fees, compensation and
expenses of the paying agent for the Obligations. The Ordinances provide that “Defeasance Securities” means (a) direct, noncallable obligations
of the United States of America, including obligations that are unconditionally guaranteed by the United States of America, (b) noncallable
obligations of an agency or instrumentality of the United States of America, including obligations that are unconditionally guaranteed or insured
by the agency or instrumentality and that are rated as to investment quality by a nationally recognized investment rating firm not less than AAA
or its equivalent, (c) noncallable obligations of a state or an agency or a county, municipality, or other political subdivision of a state that have
been refunded and that rated as to investment quality by a nationally recognized investment rating firm not less than AAA or its equivalent and
(d) any securities and obligations now or hereafter authorized by Texas law that are eligible to refund, retire or otherwise discharge obligations
such as the Obligations. The City may modify or restrict the categories of eligible of Defeasance Securities to accommodate requests from the
Initial Purchaser. The City has additionally reserved the right, subject to satisfying the requirement of (1) and (2) above, to substitute other
Defeasance Securities for the Defeasance Securities originally deposited, to reinvestment the uninvested moneys on deposit for such defeasance
and to withdraw for the benefit of the City moneys in excess of the amount required for such defeasance.
There is no assurance that the current law will not be changed in a manner which would permit investments other than those described above to
be made with amounts deposited to defease the Obligations. Because the Ordinances do not contractually limit such investments, registered
owners will be deemed to have consented to defeasance with such other investments, notwithstanding the fact that such investments may not be
of the same investment quality as those currently permitted under State law. There is no assurance that the ratings for U.S. Treasury securities
used for defeasance purposes or that for any other Governmental Security will be maintained at any particular rating category.
REMEDIES OF HOLDERS OF OBLIGATIONS. . . The Ordinances establish specific events of default with respect to the Obligations. If the City
defaults in the payment of the principal of or interest on the Obligations when due or the City defaults in the observance or performance of
any of the covenants, conditions, or obligations of the City, the failure to perform which materially, adversely affects the rights of the owners
of the Obligations including but not limited to, their prospect or ability to be repaid in accordance with the Ordinances, and the continuation
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thereof for a period of 60 days after notice of such default is given by any owner to the City, the Ordinances provide that any registered owner
is entitled to seek a writ of mandamus from a court of proper jurisdiction requiring the City to make such payment or observe and perform
such covenants, obligations, or conditions. The issuance of a writ of mandamus may be sought if there is no other available remedy at law to
compel performance of the Obligations or the Ordinances and the City's obligations are not uncertain or disputed. Chapter 1371, Texas
Government code, which pertains to the issuance of public securities by issuers such as the City, permits the City to waive sovereign immunity
in the proceedings authorizing its bonds, but in connection with the issuance of the Obligations, the City has not waived sovereign immunity,
and therefore, holders may not be able to bring such a suit against the City for breach of the of Ordinances covenants in the absence of City
action. The issuance of a writ of mandamus is controlled by equitable principles, so rests with the discretion of the court, but may not be
arbitrarily refused. There is no acceleration of maturity of the Obligations in the event of default and, consequently, the remedy of mandamus
may have to be relied upon from year to year. The Ordinances do not provide for the appointment of a trustee to represent the interest of the
holders of the Obligations upon any failure of the City to perform in accordance with the terms of the Ordinances, or upon any other condition
and accordingly all legal actions to enforce such remedies would have to undertaken of the initiative of, and be financed by, the registered
owners of the Obligations. On June 30, 2006, the Texas Supreme Court ruled in Tooke v. City of Mexia, 197 S.W.3d 325 (Tex. 2006) that a
waiver of sovereign immunity in a contractual dispute must be provided for by statute in “clear and unambiguous” language. Because it is
unclear whether the Texas legislature has effectively waived the City’s sovereign immunity from a suit for money damages, registered owners
of the Obligations may not be able to bring such a suit against City for breach of the of covenants contained in the Ordinances. Even if a
judgment against the City could be obtained, it could not be enforced by direct levy and execution against the City’s property. Further, the
registered owners cannot themselves foreclose on property within the City or sell property within the City to enforce the tax lien on taxable
property to pay the principal of and interest on the Obligations.
The City is eligible to seek relief from its creditors under Chapter 9 of the U.S. Bankruptcy Code (“Chapter 9”). Although Chapter 9 provides
for the recognition of a security interest represented by a specifically pledged source of revenues, the pledge of ad valorem taxes in support
of a general obligation of a bankrupt entity is not specifically recognized as a security interest under Chapter 9. Chapter 9 also includes an
automatic stay provision that would prohibit, without Bankruptcy Court approval, the prosecution of any other legal action by creditors or
registered owners of the Obligations of an entity which has sought protection under Chapter 9. Therefore, should the City avail itself of
Chapter 9 protection from creditors, the ability to enforce would be subject to the approval of the Bankruptcy Court (which could require that
the action be heard in Bankruptcy Court instead of other federal or state court); and the Bankruptcy Code provides for broad discretionary
powers of a Bankruptcy Court in administering any proceeding brought before it. The opinion of Bond Counsel will note that all opinions
relative to the enforceability of the Obligations are qualified with respect to the customary rights of debtors relative to their creditors,
principles of sovereign immunity and by general principles of equity which permit the exercise of judicial discretion.
SOURCES AND USES OF OBLIGATIONS PROCEEDS . . . Proceeds from the sale of the Obligations, are expected to be expended as follows:
Sources of Funds The Bonds The Certificates
Par Amount -$ -$
Issue Premium
Total Uses of Funds -$ -$
Use of Funds
Deposit to Project Fund -$ -$
Underwriter's Discount
Costs of Issuance
Total Uses of Funds -$ -$
TAX INFORMATION
The following is a summary of certain provisions of State law as it relates to ad valorem taxation and is not intended to be complete.
Prospective investors are encouraged to review Title I of the Texas Tax Code, as amended (the “Property Tax Code”), for identification of
property subject to ad valorem taxation, property exempt or which may be exempted from ad valorem taxation if claimed, the appraisal of
property for ad valorem tax purposes, and the procedures and limitations applicable to the levy and collection of ad valorem taxes.
2023 LEGISLATIVE SESSION . . . The 88the Texas Legislature convened on January 10, 2023 and will conclude on May 29, 2023. Thereafter,
the Governor of Texas (the “Governor”) may call one or more additional special sessions which may last no more than 30 days and for which
the Governor sets the agenda. During the legislative session, the Legislature will consider a general appropriations act and may consider
legislation affecting ad valorem taxation procedures affecting cities including debt obligations and public securities issued by cities. The
City can make no representations or predictions regarding any actions the Legislature may take during the 88th Texas legislative session
concerning the substance or the effect of any legislation that may be passed in the future or how such legislation could affect the City.
VALUATION OF TAXABLE PROPERTY . . . The Property Tax Code provides for countywide appraisal and equalization of taxable property
values and establishes in each county of the State an appraisal district and an appraisal review board (the “Appraisal Review Board”)
responsible for appraising property for all taxing units within the county. The appraisal of property within the City is the responsibility of the
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Brazos Central Appraisal District (the “Appraisal District”). Except as generally described below, the Appraisal District is required to appraise
all property within the Appraisal District on the basis of 100% of its market value and is prohibited from applying any assessment ratios. In
determining market value of property, the Appraisal District is required to consider the cost method of appraisal, the income method of
appraisal and the market data comparison method of appraisal, and use the method the chief appraiser of the Appraisal District considers
most appropriate. The Property Tax Code requires appraisal districts to reappraise all property in its jurisdiction at least once every three (3)
years. A taxing unit may require annual review at its own expense, and is entitled to challenge the determination of appraised value of property
within the taxing unit by petition filed with the Appraisal Review Board.
State law requires the appraised value of an owner’s principal residence (“homestead” or “homesteads”) to be based solely on the property’s
value as a homestead, regardless of whether residential use is considered to be the highest and best use of the property. State law further
limits the appraised value of a homestead to the lesser of (1) the market value of the property or (2) 110% of the appraised value of the
property for the preceding tax year plus the market value of all new improvements to the property.
State law provides that eligible owners of both agricultural land and open-space land, including open-space land devoted to farm or ranch
purposes or open-space land devoted to timber production, may elect to have such property appraised for property taxation on the basis of its
productive capacity. The same land may not be qualified as both agricultural and open-space land.
The appraisal values set by the Appraisal District are subject to review and change by the Appraisal Review Board. The appraisal rolls, as
approved by the Appraisal Review Board, are used by taxing units, such as the City, in establishing their tax rolls and tax rates (see “Tax
Information – City and Taxpayer Remedies”).
STATE MANDATED HOMESTEAD EXEMPTIONS . . . State law grants, with respect to each city in the State, various exemptions for disabled
veterans and their families, surviving spouses of members of the armed services killed in action, and surviving spouses of first responders
killed or fatally wounded in the line of duty.
LOCAL OPTION HOMESTEAD EXEMPTIONS . . . The governing body of a taxing unit, including a city, county, school district, or special
district, at its option may grant: (1) an exemption of up to 20% of the appraised value of all homesteads (but not less than $5,000) and (2) an
additional exemption of at least $3,000 of the appraised value of the homesteads of persons sixty-five (65) years of age or older and the
disabled. Each taxing unit decides if it will offer the local option homestead exemptions and at what percentage or dollar amount, as
applicable. The exemption described in (2), above, may be created, increased, decreased or repealed at an election called by the governing
body of a taxing unit upon presentment of a petition for such creation, increase, decrease, or repeal of at least 20% of the number of qualified
voters who voted in the preceding election of the taxing unit.
LOCAL OPTION FREEZE FOR THE ELDERLY AND DISABLED . . . The governing body of a county, municipality or junior college district may,
at its option, provide for a freeze on the total amount of ad valorem taxes levied on the homesteads of persons 65 years of age or older or of
disabled persons above the amount of tax imposed in the year such residence qualified for such exemption. Also, upon voter initiative, an
election may be held to determine by majority vote whether to establish such a freeze on ad valorem taxes. Once the freeze is established,
the total amount of taxes imposed on such homesteads cannot be increased except for certain improvements, and such freeze cannot be
repealed or rescinded.
PERSONAL PROPERTY . . . Tangible personal property (furniture, machinery, supplies, inventories, etc.) used in the “production of income”
is taxed based on the property’s market value. Taxable personal property includes income-producing equipment and inventory. Intangibles
such as goodwill, accounts receivable, and proprietary processes are not taxable. Tangible personal property not held or used for production
of income, such as household goods, automobiles or light trucks, and boats, is exempt from ad valorem taxation unless the governing body
of a taxing unit elects to tax such property.
FREEPORT AND GOODS-IN-TRANSIT EXEMPTIONS . . . Certain goods that are acquired in or imported into the State to be forwarded outside
the State, and are detained in the State for 175 days or less for the purpose of assembly, storage, manufacturing, processing or fabrication
(“Freeport Property”) are exempt from ad valorem taxation unless a taxing unit took official action to tax Freeport Property before April 1,
1990 and has not subsequently taken official action to exempt Freeport Property. Decisions to continue taxing Freeport Property may be
reversed in the future; decisions to exempt Freeport Property are not subject to reversal.
Certain goods that are acquired in or imported into the State to be forwarded to another location within or without the State, stored in a
location that is not owned by the owner of the goods and are transported to another location within or without the State within 175 days
(“Goods-in-Transit”), are generally exempt from ad valorem taxation; however, the Property Tax Code permits a taxing unit, on a local option
basis, to tax Goods-in-Transit if the taxing unit takes official action after conducting a public hearing, before January 1 of the first tax year
in which the taxing unit proposes to tax Goods-in-Transit. Goods-in-Transit and Freeport Property do not include oil, natural gas or petroleum
products, and Goods-in-Transit does not include aircraft or special inventories such as manufactured housing inventory, or a dealer’s motor
vehicle, boat, or heavy equipment inventory.
A taxpayer may receive only one of the Goods-in-Transit or Freeport Property exemptions for items of personal property.
OTHER EXEMPT PROPERTY . . . Other major categories of exempt property include property owned by the State or its political subdivisions
if used for public purposes, property exempt by federal law, property used for pollution control, farm products owned by producers, property
of nonprofit corporations used for scientific research or educational activities benefitting a college or university, designated historic sites,
solar and wind-powered energy devices, and certain classes of intangible personal property.
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TAX INCREMENT REINVESTMENT ZONES . . . A city or county, by petition of the landowners or by action of its governing body, may create
one or more tax increment reinvestment zones (“TIRZ”) within its boundaries. At the time of the creation of the TIRZ, a “base value” for the
real property in the TIRZ is established and the difference between any increase in the assessed valuation of taxable real property in the TIRZ
in excess of the base value is known as the “tax increment”. During the existence of the TIRZ, all or a portion of the taxes levied against the
tax increment by a city or county, and all other overlapping taxing units that elected to participate, are restricted to paying only planned
project and financing costs within the TIRZ and are not available for the payment of other obligations of such taxing units.
TAX ABATEMENT AGREEMENTS . . . Taxing units may also enter into tax abatement agreements to encourage economic development. Under
the agreements, a property owner agrees to construct certain improvements on its property. The taxing unit, in turn, agrees not to levy a tax
on all or part of the increased value attributable to the improvements until the expiration of the agreement. The abatement agreement could
last for a period of up to 10 years. See “Tax Information – Tax Abatement Policy” for descriptions of the City’s tax abatement program.
For a discussion of how the various exemptions described above are applied by the City, see “Tax Information – City Application of Property
Tax Code” herein.
TEMPORARY EXEMPTION FOR QUALIFIED PROPERTY DAMAGED BY A DISASTER . . . The Property Tax Code entitles the owner of certain
qualified (i) tangible personal property used for the production of income, (ii) improvements to real property, and (iii) manufactured homes
located in an area declared by the governor to be a disaster area following a disaster and is at least 15 percent damaged by the disaster, as
determined by the chief appraiser, to an exemption from taxation of a portion of the appraised value of the property. The amount of the
exemption ranges from 15 percent to 100 percent based upon the damage assessment rating assigned by the chief appraiser. Except in
situations where the territory is declared a disaster on or after the date the taxing unit adopts a tax rate for the year in which the disaster
declaration is issued, the governing body of the taxing unit is not required to take any action in order for the taxpayer to be eligible for the
exemption. If a taxpayer qualifies for the exemption after the beginning of the tax year, the amount of the exemption is prorated based on the
number of days left in the tax year following the day on which the governor declares the area to be a disaster area. For more information on
the exemption, reference is made to Section 11.35 of the Property Tax Code.
On April 13, 2020, the Attorney General of Texas released his opinion that “a court would likely conclude that the Legislature intended to
limit the temporary tax exemption to apply to property physically harmed as a result of a declared disaster. Thus, purely economic, non-
physical damage to property caused by the COVID-19 disaster is not eligible for the temporary tax exemption provided by section 11.35 of
the Tax Code.” Tex. Att’y Gen. Op. No. KP-0299 (2020).
CITY AND TAXPAYER REMEDIES . . . Under certain circumstances, taxpayers and taxing units, including the City, may appeal the
determinations of the Appraisal District by timely initiating a protest with the Appraisal Review Board. Additionally, taxing units such as the
City may bring suit against the Appraisal District to compel compliance with the Property Tax Code.
Beginning in the 2021 tax year, owners of certain property with a taxable value in excess of the current year “minimum eligibility amount”,
as determined by the State Comptroller, and situated in a county with a population of one million or more, may protest the determinations of
an appraisal district directly to a three-member special panel of the appraisal review board, appointed by the chairman of the appraisal review
board, consisting of highly qualified professionals in the field of property tax appraisal. The minimum eligibility amount is set at $50 million
for the 2021 tax year, and is adjusted annually by the State Comptroller to reflect the inflation rate.
The Property Tax Code sets forth notice and hearing procedures for certain tax rate increases by the City and provides for taxpayer referenda
that could result in the repeal of certain tax increases (see “Tax Information – Public Hearing and Maintenance and Operations Tax Rate
Limitations”). The Property Tax Code also establishes a procedure for providing notice to property owners of reappraisals reflecting increased
property value, appraisals which are higher than renditions, and appraisals of property not previously on an appraisal roll.
LEVY AND COLLECTION OF TAXES . . . The City is responsible for the collection of its taxes, unless it elects to transfer such functions to
another governmental entity. Taxes are due October 1, or when billed, whichever comes later, and become delinquent after January 31 of the
following year. A delinquent tax incurs a penalty of six percent (6%) of the amount of the tax for the first calendar month it is delinquent,
plus one percent (1%) for each additional month or portion of a month the tax remains unpaid prior to July 1 of the year in which it becomes
delinquent. If the tax is not paid by July 1 of the year in which it becomes delinquent, the tax incurs a total penalty of twelve percent (12%)
regardless of the number of months the tax has been delinquent and incurs an additional penalty of up to twenty percent (20%) if imposed by
the City. The delinquent tax also accrues interest at a rate of one percent (1%) for each month or portion of a month it remains unpaid. The
Property Tax Code also makes provision for the split payment of taxes, discounts for early payment and the postponement of the delinquency
date of taxes for certain taxpayers. Furthermore, the City may provide, on a local option basis, for the split payment, partial payment, and
discounts for early payment of taxes under certain circumstances.
PUBLIC HEARING AND MAINTENANCE AND OPERATIONS TAX RATE LIMITATIONS . . . The following terms as used in this section have the
meanings provided below:
“adjusted” means lost values are not included in the calculation of the prior year’s taxes and new values are not included in the
current year’s taxable values.
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“de minimis rate” means the maintenance and operations tax rate that will produce the prior year’s total maintenance and operations
tax levy (adjusted) from the current year’s values (adjusted), plus the rate that produces an additional $500,000 in tax revenue when
applied to the current year’s taxable value, plus the debt service tax rate.
“no-new-revenue tax rate” means the combined maintenance and operations tax rate and debt service tax rate that will produce the
prior year’s total tax levy (adjusted) from the current year’s total taxable values (adjusted).
“special taxing unit” means a city for which the maintenance and operations tax rate proposed for the current tax year is 2.5 cents
or less per $100 of taxable value.
“unused increment rate” means the cumulative difference between a city’s voter-approval tax rate and its actual tax rate for each
of the tax years 2021 through 2022, which may be applied to a city’s tax rate in tax years 2021 through 2023 without impacting the
voter-approval tax rate.
“voter-approval tax rate” means the maintenance and operations tax rate that will produce the prior year’s total maintenance and
operations tax levy (adjusted) from the current year’s values (adjusted) multiplied by 1.035, plus the debt service tax rate, plus the
“unused increment rate.”
The City’s tax rate consists of two components: (1) a rate for funding of maintenance and operations expenditures in the current year (the
“maintenance and operations tax rate”), and (2) a rate for funding debt service in the current year (the “debt service tax rate”). Under State
law, the assessor for the City must submit an appraisal roll showing the total appraised, assessed, and taxable values of all property in the
City to the City Council by August 1 or as soon as practicable thereafter.
A city must annually calculate its “voter-approval tax rate” and “no-new-revenue tax rate” (as such terms are defined above) in accordance
with forms prescribed by the State Comptroller and provide notice of such rates to each owner of taxable property within the city and the
county tax assessor-collector for each county in which all or part of the city is located. A city must adopt a tax rate before the later of
September 30 or the 60th day after receipt of the certified appraisal roll, except that a tax rate that exceeds the voter-approval tax rate must
be adopted not later than the 71st day before the next occurring November uniform election date. If a city fails to timely adopt a tax rate, the
tax rate is statutorily set as the lower of the no-new-revenue tax rate for the current tax year or the tax rate adopted by the city for the preceding
tax year.
As described below, the Property Tax Code provides that if a city adopts a tax rate that exceeds its voter-approval tax rate or, in certain cases,
its “de minimis rate”, an election must be held to determine whether or not to reduce the adopted tax rate to the voter-approval tax rate.
A city may not adopt a tax rate that exceeds the lower of the voter-approval tax rate or the no-new-revenue tax rate until each appraisal district
in which such city participates has delivered notice to each taxpayer of the estimated total amount of property taxes owed and the city has
held a public hearing on the proposed tax increase.
For cities with a population of 30,000 or more as of the most recent federal decennial census, if the adopted tax rate for any tax year exceeds
the voter-approval tax rate, that city must conduct an election on the next occurring November uniform election date to determine whether
or not to reduce the adopted tax rate to the voter-approval tax rate.
For cities with a population less than 30,000 as of the most recent federal decennial census, if the adopted tax rate for any tax year exceeds
the greater of (i) the voter-approval tax rate or (ii) the de minimis rate, the city must conduct an election on the next occurring November
uniform election date to determine whether or not to reduce the adopted tax rate to the voter-approval tax rate. However, for any tax year
during which a city has a population of less than 30,000 as of the most recent federal decennial census and does not qualify as a special taxing
unit, if a city’s adopted tax rate is equal to or less than the de minimis rate but greater than both (a) the no-new-revenue tax rate, multiplied
by 1.08, plus the debt service tax rate or (b) the city’s voter-approval tax rate, then a valid petition signed by at least three percent of the
registered voters in the city would require that an election be held to determine whether or not to reduce the adopted tax rate to the voter-
approval tax rate.
Any city located at least partly within an area declared a disaster area by the Governor of the State or the President of the United States during
the current year may calculate its “voter-approval tax rate” using a 1.08 multiplier, instead of 1.035, until the earlier of (i) the second tax year
in which such city’s total taxable appraised value exceeds the taxable appraised value on January 1 of the year the disaster occurred, or (ii)
the third tax year after the tax year in which the disaster occurred.
State law provides cities and counties in the State the option of assessing a maximum one‐half percent (1/2%) sales and use tax on retail sales
of taxable items for the purpose of reducing its ad valorem taxes, if approved by a majority of the voters in a local option election. If the
additional sales and use tax for ad valorem tax reduction is approved and levied, the no-new-revenue tax rate and voter-approval tax rate
must be reduced by the amount of the estimated sales tax revenues to be generated in the current tax year.
The calculations of the no-new-revenue tax rate and voter-approval tax rate do not limit or impact the City’s ability to set a debt
service tax rate in each year sufficient to pay debt service on all of the City’s tax-supported debt obligations, including the Obligations.
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Reference is made to the Property Tax Code for definitive requirements for the levy and collection of ad valorem taxes and the calculation
of the various defined tax rates.
DEBT TAX RATE LIMITATIONS . . . All taxable property within the City is subject to the assessment, levy and collection by the City of a
continuing, direct annual ad valorem tax sufficient to provide for the payment of principal of and interest on all ad valorem tax supported
debt, within the limits prescribed by law. Article XI, Section 5, of the Texas Constitution is applicable to the City, and limits its maximum
ad valorem tax rate to $2.50 per $100 of Taxable Assessed Valuation. Administratively, the Attorney General of the State of Texas will
permit allocation of $1.50 of the $2.50 maximum tax rate for all debt service on ad valorem tax-supported debt, as calculated at the time of
issuance.
THE CITY’S RIGHTS IN THE EVENT OF TAX DELINQUENCIES . . . Taxes levied by the City are a personal obligation of the owner of the
property. On January 1 of each year, a tax lien attaches to property to secure the payment of all state and local taxes, penalties, and interest
ultimately imposed for the year on the property. The lien exists in favor of each taxing unit, including the City, having power to tax the
property. The City’s tax lien is on a parity with tax liens of such other taxing units. A tax lien on real property takes priority over the claim
of most creditors and other holders of liens on the property encumbered by the tax lien, whether or not the debt or lien existed before the
attachment of the tax lien; however, whether a lien of the United States is on a parity with or takes priority over a tax lien of the City is
determined by applicable federal law. Personal property, under certain circumstances, is subject to seizure and sale for the payment of
delinquent taxes, penalty, and interest.
At any time after taxes on property become delinquent, the City may file suit to foreclose the lien securing payment of the tax, to enforce
personal liability for the tax, or both. In filing a suit to foreclose a tax lien on real property, the City must join other taxing units that have
claims for delinquent taxes against all or part of the same property.
Collection of delinquent taxes may be adversely affected by the amount of taxes owed to other taxing units, adverse market conditions,
taxpayer redemption rights, or bankruptcy proceedings which restrain the collection of a taxpayer’s debt.
Federal bankruptcy law provides that an automatic stay of actions by creditors and other entities, including governmental units, goes into
effect with the filing of any petition in bankruptcy. The automatic stay prevents governmental units from foreclosing on property and prevents
liens for post-petition taxes from attaching to property and obtaining secured creditor status unless, in either case, an order lifting the stay is
obtained from the bankruptcy court. In many cases, post-petition taxes are paid as an administrative expense of the estate in bankruptcy or
by order of the bankruptcy court.
CITY APPLICATION OF PROPERTY TAX CODE . . . The City grants a 5% exemption to the market value of the residence homestead. It also
grants an exemption to the market value of the residence homestead of persons 65 years of age or older of $30,000.
Ad valorem taxes are not levied by the City against the exempt value of residence homesteads for the payment of debt.
The City does not tax nonbusiness personal property.
The City does permit split payments, but discounts are not allowed.
The City does collect the additional one-half percent sales tax for reduction of ad valorem taxes.
The City has adopted a tax abatement policy.
An election was held on May 10, 2008 and the voters of College Station approved the ad valorem tax freeze for residential homesteads for
disabled and age 65 or older persons.
Brazos County collects the taxes for the City.
TAX ABATEMENT POLICY . . . The City has established tax abatement guidelines and criteria for economic development prospects in the City.
In order to be eligible for designation as a Reinvestment Zone and receive tax abatement, the planned improvement:
1. Must be expected to have an increased appraised ad valorem tax value of at least $1,000,000 based upon the Brazos Central
Appraisal District’s assessment of the eligible property.
2. Must be expected to prevent the loss of payroll or retain, increase or create a payroll on a permanent basis in the City.
The following factors among others should be considered in determining whether to grant tax abatement and, if so, the percentage of value
to be abated and the duration of the tax abatement:
1. Value of land and existing improvements, if any;
2. Type and value of proposed improvements;
3. Productive life of proposed improvements;
4. Number of existing jobs to be retained by proposed improvements;
5. Number of type of new jobs to be created by proposed improvements;
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6. Amount of local payroll to be created;
7. Whether persons residing or projected to reside within the City will have the opportunity to fill the new jobs being created;
8. Amount of local taxes to be generated directly;
9. Amount of property tax base valuation which will be increased during term of abatement and after abatement, which shall include
a definitive commitment that such valuation shall not, in any case, be less than $1,000,000;
10. The costs to be incurred by the City to provide facilities or services directly resulting from the new improvements;
11. The amount of ad valorem taxes to be paid to the City during the abatement period considering (a) the existing values, (b) the
percentage of new value abated, (c) the abatement period, and (d) the value after expiration of the abatement period;
12. The population growth of the City that occurs directly as result of new improvements;
13. The types of public improvements, if any, to be made by the applicant seeking abatement;
14. Whether the proposed improvements compete with existing businesses to the detriment of the local economy;
15. The impact on the business opportunities of existing businesses;
16. The attraction of other new businesses to the area;
17. The overall compatibility with the zoning ordinances and comprehensive plan for the area; and/or
18. Whether the project is environmentally compatible with no negative impact on quality of life perceptions.
Neither a Reinvestment Zone nor abatement agreement shall be authorized if it is determined that:
1. There would be substantial adverse affect on the provision of government service or tax base;
2. The applicant has insufficient financial capacity;
3. Planned or potential use of the property would constitute a hazard to public safety, health or morals;
4. Violation of other code or laws;
5. The agreement was signed after the commencement of construction, alteration or installation of improvements related to the project;
or
6. Any other reason deemed appropriate by the City Council
ECONOMIC DEVELOPMENT . . . In the fall of 2013, the College Station City Council adopted an Economic Development Master Plan. This
document represents the City’s first such effort and joins the many other Master Plans, Neighborhood, Corridor, and District Plans created
to aid in successful implementation of the Comprehensive Plan. The Master Plan defines the goals and objectives of the City’s economic
development efforts and lays out strategies and detailed actions to achieve these goals and objectives. This plan was updated in 2020 to reflect
the evolving market and identify strategic initiatives and targeted industries. The plan outlined the following initiatives that the City’s
economic development program area should focus its efforts on: attract and expand destination entertainment and hospitality activities;
support retail and redevelopment opportunities; enhance community health and wellness; support expansion of population and corporate
investment; partner with regional allies to attract and expand high-end investment; and enhance high quality of life.
Furthermore, the Plan also detailed ongoing monitoring, and identified a series of formal economic development policy guidelines that were
also adopted. These guidelines state that in order to ensure the ongoing competitiveness of the community, no State authorized incentive
should immediately be discounted. The Texas Constitution and multiple State statutes identify the role of economic development by both the
State and its municipalities as a public purpose. While recognizing there is no standard strategy, policy, or program for economic
development, the Texas Legislature has created a vast array of tools that local governments have at their disposal. The objective of these
tools is to not only encourage development and diversification of the Texas economy, but to simultaneously enhance the participating
community’s overall quality of life. Incentives to consider may include, but not be limited to: Chapter 380 financing; development fee rebates;
enterprise zone program sponsorship; Freeport exemptions; infrastructure assistance; land transactions; delayed annexation or limited purpose
annexation; special districts; reinvestment zones (tax abatement or tax increment); and fast track development process.
The City and the City of Bryan, Texas have also entered into an “Interlocal Cooperation and Joint Development Agreement” (the “Interlocal
Agreement”) in connection with implementing a joint economic development program known as the Joint Research Valley BioCorridor
Development Project (the “Project”). Under the terms of the Interlocal Agreement, the City will make funds available to the City of Bryan,
and the City of Bryan will make funds available to the City, for certain defined public infrastructure projects that are intended to enhance
development of the Project. The obligations of each city under the Interlocal Agreement shall not constitute a debt for purposes of any
provision of the State Constitution, and are intended to be paid from the general revenues of each city.
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TABLE 1 - VALUATION, EXEMPTIONS AND GENERAL OBLIGATION DEBT
2022/2023 Market Valuation Established by Brazos Central Appraisal District 12,727,149,044 $
(excluding exempt property)
Less Exemptions/Reductions at 100% Market Value:
Productivity Loss 122,712,187 $
Over 65 Homestead Exemptions 116,435,333
Cap Loss 209,830,162
Pollution Control 207,845
Member Armed Service Surviving Spouse 763,706
Solar 356,377
Freeport 34,697,113
Disabled Veteran 79,247,721
Homestead 198,108,667
First Responders Surviving Spouse 636,379 762,995,490
2022/2023 Taxable Assessed Valuation 11,964,153,554 $ (1)
Debt Payable from Ad Valorem Taxes (as of 4/1/2022)
Certificates of Obligation, Series 2013 6,070,000 $
General Obligation Improvement and Refunding Bonds, Series 2013 7,320,000
Certificates of Obligation, Series 2014 19,015,000
General Obligation Improvement and Refunding Bonds, Series 2014 14,430,000
Certificates of Obligation, Series 2016 16,655,000
General Obligation Improvement and Refunding Bonds, Series 2016 23,250,000
General Obligation Improvement and Refunding Bonds, Series 2017 23,390,000
Certificates of Obligation, Series 2017 42,760,000
Certificates of Obligation, Series 2018 28,755,000
Certificates of Obligation, Series 2019 62,070,000
Certificates of Obligation, Series 2020 18,540,000
General Obligation Refunding Bonds, Series 2020 11,910,000
General Obligation Refunding Bonds, Series 2020A 11,245,000
Certificates of Obligation, Series 2021 49,385,000
Certificates of Obligation, Series 2022 65,410,000
The Bonds(2)6,415,000
The Certificates (2)27,495,000 434,115,000
Less: Self Supporting Debt (3)230,111,414 $
Less: Interest and Sinking Fund as of 2/1/2023 26,562,159
Net Debt Payable from Ad Valorem Taxes(4)177,441,427 $
Ratio of Net Debt Payable from Ad Valorem Taxes to Taxable Assessed Valuation(4)1.48%
Per Capita Taxable Assessed Valuation - $94,911
Per Capita Net Funded Debt - $1,408
2023 Estimated Population - 126,056
(1) Certified taxable assessed valuation for tax year 2022 as reported by the Brazos Central Appraisal District. This amount is subject to change
during ensuing year.
(2) Preliminary, subject to change. The debt service on a portion of the Certificates will be internally allocated by the City as being payable
from the surplus revenues from the respective enterprise funds. Although the City expects to pay for this portion of the Certificates with
surplus enterprise funds, the Certificates are secured solely by a pledge of ad valorem taxes and by a pledge of combined utility system
surplus net revenues limited to $1,000. See “THE OBLIGATIONS - Security and Source of Payment.” There is no guarantee that payments
from these enterprise funds will be made. If payments are not made from the enterprise funds, the City will be required to levy ad valorem
taxes in amounts sufficient to make such payments.
(3) In the past, the City has sold certificates of obligation to finance projects for the City’s water and sewer system, and electric system and has
internally allocated portions of this debt as payable from the respective enterprise funds. The self-supporting amounts listed above are
projections of debt that is expected to be retired by the City based on actual historical payments from these funds to pay for debt service the
outstanding certificates of obligation. There is no guarantee that payments from these funds will continue in the future. Includes a portion
of the Certificates. See “DEBT INFORMATION – TABLE 10 – Self Supporting Debt.” Preliminary, subject to change.
(4) Net of Interest and Sinking Fund as of February 1, 2023.
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TABLE 2 - TAXABLE ASSESSED VALUATIONS BY CATEGORY
2023 2022 2021
% of % of % of
Category Amount Total Amount Total Amount Total
Real, Residential, Single-Family 7,275,649,496$ 57.17% 6,149,791,788$ 55.97% 5,811,512,587$ 55.20%
Real, Residential, Multi-Family 2,416,751,377 18.99% 2,205,779,501 20.07% 2,152,451,222 20.44%
Real, Vacant Lots/Tracts 185,802,426 1.46% 192,135,685 1.75% 176,239,728 1.67%
Real, Acreage (Land Only) 124,109,083 0.98% 122,899,435 1.12% 107,408,833 1.02%
Real, Farm and Ranch Improvements 75,424,161 0.59% 74,092,458 0.67% 70,754,199 0.67%
Real, Commercial/Industrial 1,958,551,230 15.39% 1,704,356,374 15.51% 1,675,685,747 15.92%
Real, Oil, Gas & Other Mineral Reserves 8,912,023 0.07% 2,362,709 0.02% 5,628,541 0.05%
Real and Tangible Personal, Utilities 61,792,187 0.49% 50,984,103 0.46% 41,370,586 0.39%
Tangible Personal, Business 558,179,677 4.39% 434,294,250 3.95% 413,595,878 3.93%
Tangible Personal, Other 2,216,385 0.02% 2,278,571 0.02% 2,317,808 0.02%
Real Property Inventory 31,834,604 0.25% 27,019,742 0.25% 43,992,153 0.42%
Special Inventory 27,926,395 0.22% 21,708,275 0.20% 27,647,427 0.26%
Total Appraised Value Before Exemptions 12,727,149,044$ 100.00% 10,987,702,891$ 100.00% 10,528,604,709$ 100.00%
Less: Total Exemptions/Reductions 762,995,490 503,818,512 449,134,677
Taxable Assessed Value 11,964,153,554$ 10,483,884,379$ 10,079,470,032$
2020
% of % of
Category Amount Total Amount Total
Real, Residential, Single-Family 5,654,665,682$ 54.26% 5,420,353,263$ 54.67%
Real, Residential, Multi-Family 2,165,512,093 20.78% 2,014,388,746 20.32%
Real, Vacant Lots/Tracts 170,205,829 1.63% 181,379,036 1.83%
Real, Acreage (Land Only) 111,699,300 1.07% 107,486,185 1.08%
Real, Farm and Ranch Improvements 73,131,172 0.70% 92,572,477 0.93%
Real, Commercial/Industrial 1,722,395,856 16.53% 1,612,617,746 16.27%
Real, Oil, Gas & Other Mineral Reserves 7,641,206 0.07% 12,619,033 0.13%
Real and Tangible Personal, Utilities 41,354,350 0.40% 40,945,210 0.41%
Tangible Personal, Business 415,420,441 3.99% 389,192,346 3.93%
Tangible Personal, Other 2,384,330 0.02% 2,441,400 0.02%
Real Property Inventory 37,101,583 0.36% 23,400,278 0.24%
Special Inventory 19,926,390 0.19% 16,814,030 0.17%
Total Appraised Value Before Exemptions 10,421,438,232$ 100.00% 9,914,209,750$ 100.00%
Less: Total Exemptions/Reductions 442,006,875 427,135,373
Taxable Assessed Value 9,979,431,357$ 9,487,074,377 $
Taxable Appraised Value, Fiscal Year Ending September 30,
Taxable Appraised Value, Fiscal Year Ending September 30,
2019
NOTE: Valuations shown are certified taxable assessed values reported by the Brazos Central Appraisal District to the State Comptroller of
Public Accounts. Certified values are subject to change throughout the year as contested values are resolved and the Appraisal District
updates records.
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TABLE 3 - VALUATION AND GENERAL OBLIGATION DEBT HISTORY
Ratio of Net
Fiscal Taxable G.O. Tax Debt
Year Taxable Assessed to Taxable Net G.O.
Ended Estimated Assessed Valuation Net G.O. Assessed Tax Debt
9/30 Population
(1) Valuation(2)Per Capita Tax Debt
(3)Valuation Per Capita
2019 121,150 9,487,074,377$ 78,308$ 197,690,000$ 2.08% 1,632$
2020 122,949 9,979,431,357 81,167 183,525,000 1.84% 1,493
2021 124,710 10,079,470,032 80,823 194,901,488 1.93% 1,563
2022 124,866 10,483,884,379 83,961 220,478,586 2.10% 1,766
2023 126,056 11,964,153,544 83,961 218,520,275 (4)1.83%(4)1,734 (4)
(1) Source: The City.
(2) As reported by the Brazos Central Appraisal District; subject to change during the ensuing year. Certified taxable assessed valuation for
tax year 2022 as reported by the Brazos Central Appraisal District. This amount is subject to change during ensuing year.
(3) Payable from ad valorem taxes. Does not include self-supporting debt as shown on Table 8 and Table 10.
(4) Projected, includes the Obligations.
TABLE 4 - TAX RATE, LEVY AND COLLECTION HISTORY
Fiscal Year General Interest and % Current % Total
Ended 9/30 Tax Rate Fund Sinking Fund Tax Levy Collections Collections
2019 0.5058$ 0.2855$ 0.2203$ 46,985,167$ 99.22% 99.22%
2020 0.5346 0.3132 0.2214 52,020,670 98.78% 98.78%
2021 0.5346 0.3182 0.2164 52,501,620 99.27% 99.27%
2022 0.5346 0.3182 0.2164 54,446,371 98.87% 98.87%
2023 0.5246 0.3132 0.2114 60,563,307 90.59%(1)90.32%(1)
(1) Collections as of March 15, 2023. A portion of the City's taxpayer base has elected to provide split payments to the City which will be
due in part on June 30, 2023.
TABLE 5 - TEN LARGEST TAXPAYERS
2023 % of Total
Taxable Taxable
Nature Assessed Assessed
Name of Taxpayer of Property Valuation Valuation
Fujifilm Diosynth Biotechnologies Texas LLC Technology 267,892,871$ 2.24%
Sterling-A&M High Rise LLC Apartment Buildings 68,606,486 0.57%
The Standard at College Station LLC Apartment Buildings 65,487,384 0.55%
CPP College Station I LLC Real Estate 59,928,422 0.50%
Northpoint Crossing Residential I Owner LLC Real Estate 58,470,000 0.49%
Northpoint Crossing Residential II Owner LLC Real Estate 57,960,000 0.48%
Israel Weinberg Commercial 53,573,519 0.45%
SW Meadows Point LP Apartment Buildings 51,924,350 0.43%
Culpepper Family LP Real Estate 51,180,666 0.43%
SHP-The Callaway House LP Apartment Buildings 46,956,270 0.39%
781,979,968$ 6.54%
GENERAL OBLIGATION DEBT LIMITATION . . . No general obligation debt limitation is imposed on the City under current State law or the
City's Home Rule Charter (see “THE OBLIGATIONS - Tax Rate Limitation”).
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TABLE 6 - TAX ADEQUACY
Net Maximum Tax Suppported Principal and Interest Requirements (2023)…………………………… 26,064,570 $ (1)
$0.22006 Tax Rate at 99% Collection Produces ………………………………………………………26,065,033 $
Net Average Tax Supported Principal and Interest Requirements (2023-2043)………………………… 14,886,710 $ (1)
$0.12569 Tax Rate at 99% Collection Produces ………………………………………………………14,887,367 $
(1) Includes the Obligations and excludes self-supporting debt. Preliminary, subject to change.
TABLE 7 - ESTIMATED OVERLAPPING DEBT
Expenditures of the various taxing entities within the territory of the City are paid out of ad valorem taxes levied by such entities on properties
within the City. Such entities are independent of the City and may incur borrowings to finance their expenditures. This statement of direct
and estimated overlapping ad valorem tax debt (“Tax Debt”) was developed by the City from information obtained from the Brazos Central
Appraisal District. Except for the amounts relating to the City, the City has not independently verified the accuracy or completeness of such
information, and no person should rely upon such information as being accurate or complete. Furthermore, certain of the entities listed may
have issued additional debt since the date hereof, and such entities may have programs requiring the issuance of substantial amounts of
additional debt, the amount of which cannot be determined. The following table reflects the estimated share of overlapping Tax Debt of the
City.
City's
2022/23 Total Net Estimated Overlapping
Taxable 2022 Tax Debt as % Tax Debt as
Assessed Value Tax Rate of 4/1/2023 Applicable of 4/1/2023
City of College Station 11,964,153,554 $ (1)0.5246 177,441,427 $ (2)100.00% 177,441,427 $
Rock Prairie Management District #2 73,294,914 0.5000 4,935,000 100.00% 4,935,000
Brazos County 25,202,607,443 0.4294 67,255,000 48.13% 32,369,832
Bryan ISD 11,683,215,026 1.1396 248,675,000 3.51% 8,728,493
College Station ISD 12,975,306,902 1.1781 343,110,000 87.85% 301,422,135
Total Direct and Overlapping Funded Tax Debt 524,896,886 $
Ratio of Direct and Overlapping Funded Tax Debt to Taxable Assessed Valuation 4.387%
Per Capita Overlapping Funded Tax Debt 4,164 $
Source: Municipal Advisory Council of Texas.
(1) Certified taxable assessed valuation for tax year 2022 as reported by the Brazos Central Appraisal. This amount is subject to change
during ensuing year.
(2) Projected, includes the Obligations and excludes self-supporting debt.
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25 DEBT INFORMATION TABLE 8 - PRO-FORMA AD VALOREM TAX DEBT SERVICE REQUIREMENTS* Total NetYearLess: Tax Supported % ofEndSelf-Supporting Debt Service Principal9/30 Principal Interest Total Principal Interest Total Principal Interest Total Debt Service(3)Requirements Retired2023 31,865,000$ 16,994,940$ 48,859,940$ -$ -$ -$ -$ -$ -$ 22,795,369$ 26,064,570$ 2024 30,670,000 15,491,874 46,161,874 225,000 374,820 599,820 665,000 1,613,981 2,278,981 23,941,810 25,098,865 2025 30,160,000 14,038,606 44,198,606 295,000 302,125 597,125 965,000 1,317,375 2,282,375 23,420,845 23,657,261 2026 30,350,000 12,575,411 42,925,411 305,000 287,125 592,125 1,015,000 1,267,875 2,282,875 22,798,658 23,001,753 2027 27,790,000 11,248,459 39,038,459 320,000 271,500 591,500 1,065,000 1,215,875 2,280,875 20,787,983 21,122,852 33.41%2028 26,645,000 10,102,544 36,747,544 340,000 255,000 595,000 1,120,000 1,161,250 2,281,250 19,495,667 20,128,127 2029 24,930,000 9,042,185 33,972,185 355,000 237,625 592,625 1,175,000 1,103,875 2,278,875 18,412,316 18,431,369 2030 23,680,000 8,037,719 31,717,719 375,000 219,375 594,375 1,235,000 1,043,625 2,278,625 16,712,577 17,878,142 2031 23,140,000 7,057,530 30,197,530 240,000 204,000 444,000 1,140,000 984,250 2,124,250 16,506,213 16,259,567 2032 23,550,000 6,108,438 29,658,438 250,000 191,750 441,750 1,190,000 926,000 2,116,000 15,976,345 16,239,842 61.17%2033 23,285,000 5,179,530 28,464,530 265,000 178,875 443,875 1,255,000 864,875 2,119,875 14,923,849 16,104,431 2034 22,845,000 4,291,439 27,136,439 270,000 165,500 435,500 1,315,000 800,625 2,115,625 14,177,945 15,509,619 2035 20,510,000 3,539,315 24,049,315 285,000 151,625 436,625 1,385,000 733,125 2,118,125 12,344,956 14,259,109 2036 21,190,000 2,871,715 24,061,715 300,000 137,000 437,000 1,455,000 662,125 2,117,125 12,353,706 14,262,134 2037 19,880,000 2,205,498 22,085,498 315,000 121,625 436,625 1,535,000 587,375 2,122,375 11,934,618 12,709,880 86.09%2038 15,530,000 1,616,959 17,146,959 330,000 105,500 435,500 1,605,000 508,875 2,113,875 11,045,296 8,651,038 2039 13,585,000 1,126,775 14,711,775 350,000 88,500 438,500 1,690,000 426,500 2,116,500 9,680,113 7,586,663 2040 9,175,000 735,363 9,910,363 370,000 70,500 440,500 1,780,000 339,750 2,119,750 7,195,069 5,275,544 2041 8,205,000 413,038 8,618,038 390,000 51,500 441,500 1,870,000 248,500 2,118,500 5,924,400 5,253,638 2042 5,085,000 127,125 5,212,125 405,000 31,625 436,625 1,970,000 152,500 2,122,500 3,726,125 4,045,125 99.46%2043 - - - 430,000 10,750 440,750 2,065,000 51,625 2,116,625 1,476,000 1,081,375 100.00%432,070,000$ 132,804,459$ 564,874,459$ 6,415,000$ 3,456,320$ 9,871,320$ 27,495,000$ 16,009,981$ 43,504,981$ 305,629,858$ 312,620,902$ The Certificates(2)Outstanding Debt Service The Bonds(1) (1) Average life of the Bonds – 10.776 years. Interest calculated at an average rate for purposes of illustration. Preliminary, subject to change. (2) Average life of the Certificates – 11.646 years. Interest calculated at an average rate for purposes of illustration. Preliminary, subject to change. (3) In the past, the City has sold certificates of obligation to finance projects for the City’s water and sewer system, and electric system and has internally allocated portions of this debt as payable from the respective enterprise funds. The self-supporting amounts listed above are projections of debt that is expected to be retired by the City based on actual historical payments from these funds to pay for debt service the outstanding certificates of obligation. There is no guarantee that payments from these funds will continue in the future. Includes a portion of the Certificates. See “Table 10 – Self Supporting Debt” and the accompanying footnotes. Preliminary, subject to change.
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TABLE 9 - INTEREST AND SINKING FUND BUDGET PROJECTION
Total Net Tax Supported Debt Service Requirements, Fiscal Year Ending September 30, 2023(1)26,064,570$
Interest and Sinking Fund, September 30, 2022 7,538,407$
Budgeted Interest and Sinking Fund Tax Levy 22,033,833
Budgeted Investment Earnings 50,000
Budgeted Transfers 468,073 30,090,313
Estimated Balance, September 30, 2023 4,025,743$
(1) Excludes self-supporting debt. Includes the Obligations. Preliminary, subject to change.
TABLE 10 – SELF-SUPPORTING DEBT(1)
Year Total
End Electric Wastewater Water Self-Supporting
9/30 Fund Fund Fund Landfill Debt Service
2023 7,902,134$ 7,711,082$ 6,860,604$ 321,550$ 22,795,369$
2024 8,314,988 7,835,407 7,462,366 329,050 23,941,810
2025 8,014,255 7,578,680 7,497,234 330,675 23,420,845
2026 7,754,559 7,570,884 7,141,664 331,550 22,798,658
2027 6,545,204 7,354,776 6,556,327 331,675 20,787,983
2028 6,391,869 6,989,843 5,789,555 324,400 19,495,667
2029 5,933,143 6,830,269 5,319,029 329,875 18,412,316
2030 5,068,875 6,836,505 4,807,197 - 16,712,577
2031 4,894,706 6,825,385 4,786,122 - 16,506,213
2032 4,571,596 6,829,323 4,575,426 - 15,976,345
2033 4,073,474 6,459,263 4,391,113 - 14,923,849
2034 3,476,674 6,306,134 4,395,138 - 14,177,945
2035 2,875,221 5,523,774 3,945,961 - 12,344,956
2036 2,873,954 5,529,638 3,950,115 - 12,353,706
2037 2,878,886 5,529,734 3,525,997 - 11,934,618
2038 2,869,441 5,198,803 2,977,052 - 11,045,296
2039 2,438,703 4,509,372 2,732,038 - 9,680,113
2040 2,437,297 2,877,016 1,880,756 - 7,195,069
2041 2,441,619 1,781,944 1,700,838 - 5,924,400
2042 1,477,375 1,078,125 1,170,625 - 3,726,125
2043 763,625 143,500 568,875 - 1,476,000
93,997,598 $ 117,299,455 $ 92,034,030 $ 2,298,775 $ 305,629,858 $
(1) The debt service described in this table is general obligation debt for which repayment is provided from revenues from other sources.
It is the City’s current policy to provide these payments from such sources. There is no assurance that the use of these sources to make
these payments will continue in the future. If payments are not made from such sources in the future, the difference will be paid for
with ad valorem taxes. Includes a portion of the Obligations. Preliminary, subject to change.
TABLE 11 - AUTHORIZED BUT UNISSUED TAX BONDS
Date of Amount Issued
Authorization Purpose Authorized To Date The Bonds Unissued
11/4/2003 Municipal Complex Improvements 7,610,000$ 3,955,000$ -$ 3,655,000$
11/4/2003 Park Improvements 12,790,000 12,145,000 - 645,000
11/8/2022 Public Safety, Transportation, Park 56,100,000 - 6,900,000 56,100,000
76,500,000$ 16,100,000$ 6,900,000$ 53,500,000$
ANTICIPATED ISSUANCE OF GENERAL OBLIGATION DEBT
The City has no firm plans for the issuance of additional general obligation debt payable from ad valorem taxes within the next twelve months.
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OTHER OBLIGATIONS
The City has obtained office space, machinery and equipment through long-term operating leases. The terms and conditions for these leases
varies. The leases are fixed, periodic payments over the lease terms of the individual contracts, which ranges from 1-12 years. At September
30, 2022, the City leases consisted of the following:
Year Ended
September 30, Principal Interest Total
2022 167,757 $ 4,122 $ 171,879 $
2023 99,727 2,547 102,274
2024 22,752 1,574 24,326
2025 23,270 1,057 24,327
2026 23,799 529 24,328
2027-2031 10,552 62 10,614
347,857 $ 9,891 $ 357,748 $
PENSION FUND
Plan Description
The City accounts for pension cost under GASB Statement No. 68, Accounting and Financial Reporting for Pensions. The City of College
Station participates as one of over 900 plans in the multi-employer, nontraditional, joint contributory, hybrid defined benefit pension plan
administered by the Texas Municipal Retirement System (TMRS). TMRS is an agency created by the State of Texas and administered in
accordance with the TMRS Act, Subtitle G, Title 8, Texas Government Code (the TMRS Act) as an agent multiple-employer retirement
system for municipal employees in the State of Texas. The TMRS Act places the general administration and management of the System with
a six-member Board of Trustees. Although the Governor, with the advice and consent of the Senate, appoints the Board, TMRS is not fiscally
dependent on the State of Texas. TMRS’s defined benefit pension plan is a tax-qualified plan under Section 401 (a) of the Internal Revenue
Code. TMRS issues a publicly available comprehensive annual financial report that can be obtained at www.tmrs.com. All eligible employees
of the city are required to participate in TMRS.
TMRS provides retirement, disability, and death benefits. Benefit provisions are adopted by the governing body of the City, within the options
available in the state statutes governing TMRS.
At retirement, the benefit is calculated as if the sum of the employee’s contributions, with interest, and the city-financed monetary credits,
with interest, were used to purchase an annuity. Members may choose to receive their retirement benefit in one of seven actuarially equivalent
payment options. Members may also choose to receive a portion of their benefit as a Partial Lump Sum Distribution in an amount equal to
12, 24, or 36 monthly payments, which cannot exceed 75% of the member’s deposits and interest.
Plan provisions for the City were as follows:
Employees covered by benefit terms at the December 31, 2021 valuation and measurement date are as follows:
Inactive employees or beneficiaries currently receiving benefits 555
Inactive employees entitled to but not yet receiving benefits 663
Active employees 915
Total 2,133
Employee deposit rate 7.00%
Matching ratio (City to Employee) 2 to 1
Years required for vesting 5
Service retirement eligibility 20 years at any age;
5 years at age 60 and above
Updated service credit 75% repeating transfers
Annuity increase (to retirees) 50% of CPI repeating
28
Contributions
The contribution rates for employees in TMRS are either 5%, 6%, or 7% of employee gross earnings, and the city matching percentages are
either 100%, 150%, or 200%, both as adopted by the governing body of the city. Under the state law governing TMRS, the contribution rate for
each city is determined annually by the actuary, using the Entry Age Normal (EAN) actuarial cost method. The actuarially determined rate is the
estimated amount necessary to finance the cost of benefits earned by employees during the year, with an additional amount to finance any
unfunded accrued liability.
Employees for the City were required to contribute 7% of their annual gross earnings during the fiscal year. The contribution rates for the City
were 13.30% and 13.14% in calendar years 2022 and 2021, respectively. The City’s contributions to TMRS for fiscal year 2022 were $10,371,851
which exceeded the required contributions of $8,956,004.
Net Pension Liability
The City’s Net Pension Liability (NPL) was measured as of December 31, 2021, and the Total Pension Liability (TPL) used to calculate the Net
Pension Liability was determined by an actuarial valuation as of that date.
Actuarial Assumptions
The Total Pension Liability in the December 31, 2021 actuarial valuation was determined using the following actuarial assumptions:
Inflation 2.5% per year
Overall paytoll growth 2.75%
Investment rate of return 6.75%, net of pension plan investment
expense including inflation
Salary increases were based on service-related tables. Mortality rates for active members, retirees, and beneficiaries were based on fully
generational basis with scale UMP. PUB(10) Mortality Table with the Public Safety table used for males and the General Employee table used
for females. The rates are projected on a fully generational basis with scale UMP.
Actuarial assumptions used in the December 31, 2021 valuation were based on the results of actuarial experience studies of TMRS over the four
year period from December 31, 2014 to December 31, 2018. Assumptions are reviewed annually.
The long-term expected rate of return on pension plan investments is 6.75%. The pension plan’s policy with regard to the allocation of invested
assets is established and may be amended by the TMRS Board of Trustees. Plan assets are managed on a total return basis with an emphasis on
both capital appreciation as well as the production of income, in order to satisfy the short-term and long-term funding needs of TMRS. The long-
term expected rate of return on pension plan investments was determined using a building-block method in which best estimate ranges of expected
future real rates of return (expected returns, net of pension plan investment expense and inflation) are developed for each major asset class. These
ranges are combined to produce the long-term expected rate of return by weighting the expected future real rates of return by the target asset
allocation percentage and by adding expected inflation. The target allocation and best estimates of arithmetic real rates of return for each major
asset class are summarized in the following table:
Long Term
Expected
Target Real Rate
Asset Class Allocation of Return
Global Equity 35.00% 7.55%
Core Fixed Income 6.00% 2.00%
Non-Core Fixed Income 20.00% 5.68%
Real Return 12.00% 7.22%
Real Estate 12.00% 6.85%
Hedge Funds 5.00% 5.35%
Private Equity 10.00% 10.00%
Total 100.00%
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29
Discount Rate
The discount rate used to measure the Total Pension Liability was 6.75%. The projection of cash flows used to determine the discount rate
assumed that employee contributions will remain at the current 7.0% and employer contributions will be made at the rates specified in statute.
Based on that assumption, the pension plan’s Fiduciary Net Position was projected to be available to make all projected future benefit payments
of current plan members. Therefore, the long-term expected rate of return on pension plan investments was applied to all periods of projected
benefit payments to determine the Total Pension Liability.
Increase (Decrease)
Total Plan Net
Pension Fiduciary Pension
Liability Net Position Liability
(a) (b) (a) - (b)
Balance at 12/31/2020 333,159,432$ 306,679,489$ 26,479,943$
Changes for the year:
Service Cost 9,623,885 - 9,623,885
Interest (on the Total Pension Liability) 22,333,149 - 22,333,149
Differences between expected
and actual experience 304,722 - 304,722
Changes of assumptions - - -
Contributions - employer - 9,759,755 (9,759,755)
Contributions - employee - 4,326,731 (4,326,731)
Net investment income (loss) - 39,981,519 (39,981,519)
Benefit payments, including refunds of -
employee contributions; (14,219,819) (14,219,819) -
Administrative expenses - (184,986) 184,986
Other changes - 1,266 (1,266)
Net changes 18,041,937 39,664,466 (21,622,529)
Ending Balance at 12/31/2021 351,201,369$ 346,343,955$ 4,857,414$
Sensitivity of the Net Pension Liability to Changes in the Discount Rate
The following presents the net pension liability of the City, as well as what the City’s net pension liability (asset) would be if it were calculated
using a discount rate that is 1-percentage-point lower or 1-percentage- point higher than the current rate:
1% Decrease 1% Increase
in Discount Discount in Discount
Rate (5.75%) Rate (6.75%) Rate (7.75%)
City's net pension liability 56,643,717$ 4,857,415$ (37,361,055)$
Pension Plan Fiduciary Net Position
Detailed information about the pension plan’s Fiduciary Net Position is available in a separately-issued TMRS financial report. That report may
be obtained on the Internet at www.tmrs.com.
Pension Expense
For the year ended September 30, 2022, the City recognized pension expense of $412,985.
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30
Deferred Outflows of Resources and Deferred Inflows of Resources Related to Pension
At September 30, 2022, the City reported deferred outflows and inflows of resources related to pensions from the following sources:
Deferred Deferred
Outflows of Inflows of
Resources Resources
Differences between expected and actual economic experience 237,897$ 675,974$
Changes in assumptions 325,018 -
Difference between projected and actual earnings - 20,521,473
Contributions subsequent to the measurement date 7,973,129 -
Total 8,536,044$ 21,197,447$
$7,973,129 reported as deferred outflows of resources related to pensions resulting from contributions subsequent to the measurement date, will
be recognized as a reduction of the net pension liability for the measurement year ending December 31, 2022 and recognized in the City’s
financial statements as of September 30, 2023.
Other amounts reported as deferred outflows and inflows of resources related to pensions will be recognized in pension expense in the following
years indicated below:
Net deferred
Fiscal outflows
Year Ended (inflows) of
Sept. 30: resources
2022 (3,722,182)$
2023 (8,686,493)
2024 (4,407,149)
2025 (3,818,708)
(20,634,532)$
OTHER POST-EMPLOYMENT BENEFITS
Plan Description
Plan administration: As required by state laws, in addition to the pension benefits described above, the City makes available certain
postretirement benefits to employees who meet TMRS retirement qualifications, retire from City employment, and enroll in the plan before
the effective date of their retirement. The City’s OPEB Plan is a single employer defined benefit plan, defined by City policy. The OPEB
Plan does not issue a separate report that includes financial statements and required supplementary information for the OPEB Plan.
Plan membership. At September 30, 2022 membership consisted of the following:
Medical
and/or Life
Dental Insurance
Benefits Benefits
Retirees and Retiree Spouses 55 173
Active Employees 893 893
948 1,066
Benefits provided: The City’s defined benefit Other Post-Employment Benefits (OPEB) Plan offers medical, dental, vision, drug, and life
insurance benefits to retired employees and their eligible dependents. The OPEB Plan is a single employer defined benefit OPEB plan
administered by the City. The benefit levels offered to retired employees and eligible dependents are the same as those afforded to active
employees as the City’s group health insurance plan covers both active and retired members. All medical, dental, vision and drug care benefits
are provided through the City’s self-insured health plan. As long as monthly premium payments are made, the healthcare plan provides
coverage until age 65 for retired employees and eligible dependents enrolled in the City’s OPEB Plan. The life insurance offered though the
OPEB Plan provides a $10,000, fully insured death benefit coverage upon retirement, which ceases upon attainment of age 65. The Life
insurance benefit for eligible retirees is paid entirely by the City.
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Contributions: Benefit provisions, as well as retiree premium contributions, are established by City management. The City determines the
employer and participant contribution rates annually, based on recommendations of City staff and the City’s benefit consultant. For the year
ended September 30, 2022, the City’s average contribution rate was 2.0% of covered-employee payroll. The City’s contributions to the plan
for fiscal year 2022 was $1,344,892 which meets the actuarially determined contribution of $267,766.
Investments
Investment policy: The goal of the Plan’s investment program is to generate adequate long-term returns that, when combined with
contributions, will result in sufficient assets to pay the present and future obligations of the Plan. The Plan has a Balanced Risk Tolerance
with a Strategic Asset Allocation of the following:
Concentrations: Assets of the OPEB plan are held in Trust by PARS which is fully discussed in Note 21 in the City’s financial statements.
Rate of return: For the year ended December 31, 2021, the annual money-weighted rate of return on investments, net of investment expense,
was 11.60%. The money-weighted rate of return expresses investment performance, net of investment expense, adjusted for the changing
amounts actually invested.
Receivables
The OPEB plan has no receivables from long-term contracts with the City for contributions at September 30, 2022.
Allocated Insurance Contracts
The OPEB plan has no allocated insurance contracts excluded from OPEB plan assets at September 30, 2022.
Reserves
The OPEB plan has no reserves recorded at September 30, 2022.
Net OPEB Liability
The components of the net OPEB liability of the City at September 30, 2022 based on the December 31, 2021 measurement and actuarial
valuation date, were as follows:
Total OPEB liability - ending 6,318,674 $
Plan fiduciary net position - ending (6,521,781)
Net OPEB liability - ending (203,107)$
Plan fiduciary net position as a percentage
of total OPEB liability 103.21%
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Target Allocation
Asset Class Allocation Range
Cash 5.0% 0-20%
Fixed Income 35.0% 30%-50%
Equity 60.0% 50%-70%
Total 100.0%
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Changes in the Net OPEB Liability (Asset)
For the year ended September 30, 2022, the City recognized change of $2,233,198 in its net OPEB liability (asset). Components of the
change in net OPEB liability (asset) are as follows:
Increase (Decrease)
Total OPEB Plan Fiduciary Net OPEB
Liability Net Position Liability
Balances as of Decmeber 31, 2020 6,626,605 $ 4,596,514$ 2,030,091 $
Changes for the year:
Service cost 214,329 - 214,329
Interest 445,496 - 445,496
Differences between expected and -
actual experience 183,681 - 183,681
Changes of assumptions of other inputs (198,051) - (198,051)
Contributions-employer - 2,273,809 (2,273,809)
Net investment income - 604,844 (604,844)
Benefit payments (953,386) (953,386) -
Net changes (307,931) 1,925,267 (2,233,198)
Balances as of December 31, 2021 6,318,674 $ 6,521,781 $ (203,107)$
Actuarial assumptions. The total OPEB liability for the year ended September 30, 2022 as measured as of December 31, 2021 was determined
by an actuarial valuation as of that date using the following actuarial assumptions, applied to all periods included in the measurement, unless
otherwise specified:
Inflation 3.0%
Salary increases 4% to 12%
Discount rate 7.00%
Healthcare cost trend rates 8.00% in FY23 decreasing 0.50% per year to an ultimate rate of
4.75% for FY30 and later years
Mortality rates were based on the Pub-2010 Public Safety Employee mortality table form males and Pub-2010 General Employee mortality
table for females and Ultimate MP Projection scale projected generationally from the year 2021. The actuarial assumptions used in the
December 31, 2021 valuation were based on the results of an actuarial experience study for the period December 31, 2014 to December 31,
2018. Retirees and Retiree Spouses, the 2019 Municipal Retirees of Texas mortality tables with Ultimate MP Projection Scale projected
generationally from the year 2019. Disabled Retirees, the 2019 Muni9cipal Retirees of Texas mortality tables with a 3-year set forward for
females and a 4-year set forward for males, minimum mortality rates at all ages of 3% for females and 3.5% for males, d ultimate MP
projection Scale projected generationally from the year 2019.
The long-term expected rate of return on OPEB plan investments was determined using a building-block method in which best-estimate
ranges of expected future real rates of return (expected returns, net of investment expense and inflation) are developed for each major asset
class. These ranges are combined to produce the long-term expected rate of return by weighting the expected future real rates of return by
the target asset allocation percentage and by adding expected inflation. Best estimates of arithmetic real rates of return for each major asset
class included in the target asset allocation are summarized in the following table:
Expected
Real
Target Rate of Weighted
Asset Class Allocation Return Average
Cash 5.00% 0.75% 0.04%
Fixed Income 35.00% 3.56% 1.25%
Equity 60.00% 5.75% 3.45%
Total 100.00% N/A 4.74%
Discount rate. The discount rate used to measure the total OPEB liability was 7.0 percent. The discount rate used to determine the total OPEB
Liability as of the beginning of the measurement year prior to the establishment of the OPEB trust was 3.78%. The weighted average of the
Expected Real Rate of Return is added to the Expected Long-Term Inflation assumption and reduced by expected investment expenses
(4.74% + 3.00% - 0.75% = 6.99%). This result is then rounded to the nearest 25 basis points to obtain the Expected Long-Term Rate of
Return of 7.00%.
33
The projected cash flows into the plan are equal to projected benefit payments out of the plan plus prefunding contributions that have been
approved by the City Council. The projection of cash flows used to determine the discount rate assumed that City contributions will be made
at rates equal to the actuarially determined contribution rates.
The assumed rate of general inflation has been updated since the valuation used for the September 30, 2021 liability to reflect the actuary’s
best expectation of future plan experience. The long-term expected rate of return for the plan is 7.0 percent. The plan operates on a pay as
you go basis and accumulates assets in trust in addition to the pay as you go amount.
Based on the discount rate assumptions, the OPEB plan’s fiduciary net position was projected to be available to make all projected future
benefit payments of current plan members. Therefore, the long- term expected rate of return on OPEB plan investments was applied to all
periods of projected benefit payments to determine the total OPEB liability.
Sensitivity of the net OPEB liability (asset) to changes in the discount rate. The following presents the net OPEB liability (asset) of the City,
as well as what the City’s net OPEB liability (asset) would be if it were calculated using a discount rate that is 1-percentage point lower
(6.00%) or 1-percentage-point higher (8.00%) than the current discount rate:
1% Current 1%
Decrease Discount Rate Increase
(6.00%) (7.00%) (8.00%)
Net OPEB liability 290,988 $ (203,107)$ (650,475)$
Sensitivity of the net OPEB liability (asset) to changes in the healthcare cost trend rates. The following presents the net OPEB liability (asset)
of the City, as well as what the City’s net OPEB liability (asset) would be if it were calculated using healthcare cost trend rates that are 1-
percentage-point lower (7.00% decreasing to 3.75%) or 1-percentage-point higher (9.00% decreasing to 5.75%) than the current healthcare
cost rend rates:
Current Healthcare
1% Decrease Cost Trend Rates 1% Increase
(7.00% decreasing (8.00% decreasing (9.00% decreasing
to 3.75%) to 4.75%) to 5.75%)
Net OPEB liability (743,812)$ (203,107)$ 427,865 $
OPEB Expense and Deferred Outflows of Resources and Deferred Inflows of Resources Related to OPEB
For the fiscal year ended September 30, 2022, the City recognized OPEB expense/(income) of ($415,817). At September 30, 2022, the City
reported changes to deferred outflows of resources and deferred inflows of resources related to OPEB from the following sources as follows:
Deferred Deferred
Outflows of Inflows of
Resources Resources
Differences between expected and actual economic experience 428,643$ 546,850$
Changes of assumptions 940,452 2,247,636
Difference between projected and actual earning on OPEB plan investments - 434,090
Contributions subsequent to the measurement date 1,168,437 -
Total 2,537,532$ 3,228,576$
$1,168,437 reported as deferred outflows of resources related to OPEB resulting from contributions subsequent to the measurement date, will
be recognized as a reduction of the net OPEB liability )or an increase of the net OPEB asset) for the measurement year ending December 31,
2022 and recognized in the City’s financial statements as of September 30, 2023. Amounts reported as deferred outflows of resources and
deferred inflows of resources related to OPEB will be recognized in OPEB expense as follows:
Fiscal Deferred
Year Ended inflows of
Sept. 30: resources
2023 (730,382)$
2024 (788,270)
2025 (337,348)
2026 (139,675)
2027 138,210
Thereafter (2,016)
(1,859,481)$
34
OPEB Trust
On September 11, 2017, the City Council approved a resolution adopting the Public Agencies Retirement Services (PARS) Post-Retirement
Health Care Plan Trust and on September 25, 2017, the City Council passed resolution 2017-0564 appropriating the funds. Effective
September 27, 2017, the City entered into a section 115 Irrevocable Exclusive Benefit agent multiple-employer trust to fund its Other
Postemployment Benefits Obligation. Trust and Investment Management Services are provided by Public Agency Retirement Services
(PARS) and is administered by the City. The investment manager that executes investment transactions is Highmark Capital Management,
Inc. and the custodian of the trust’s funds is US Bank.
With the establishment of the trust, the City can pre-fund (make annual payments in advance of the obligation) and allocate funds for the
express purpose of funding future OPEB costs. The investment returns can be used to reduce the actuarial contributions and can result in
lower long-term costs of the plan. As of September 30, 2022 the trust’s balance was $6,521,780.
FINANCIAL INFORMATION
TABLE 12 - GENERAL FUND REVENUES AND EXPENDITURE HISTORY
2022 2021 2020 2019 2018
Revenues:
Taxes 73,904,402$ 68,484,636$ 62,576,440$ 59,745,768$ 56,329,528$
Licenses & Permits 2,862,819 2,617,660 1,978,515 1,633,241 1,772,959
Intergovernmental 1,202,336 6,138,879 1,117,729 585,506 910,169
Charges for Services 5,067,985 4,850,627 3,654,911 3,753,297 3,940,837
Fines, Forfeits and Penalties 2,414,408 2,421,960 2,955,723 3,544,994 3,211,536
Investment Income 507,575 78,929 264,215 757,250 449,880
Rents & Royalties 627,582 579,416 100,409 184,543 219,538
Contributions 1,532 9,992 251 17,905 7,361
Other 537,675 427,898 1,808,677 957,825 642,547
Total Revenues 87,126,314$ 85,609,997$ 74,456,870$ 71,180,329$ 67,484,355$
Expenditures:
General Government 7,885,143$ 9,784,872$ 7,629,456$ 8,481,683$ 6,165,016$
Fiscal Services 5,007,950 4,535,506 4,424,965 3,993,584 3,954,488
Police Department* 10,627,727 * 23,841,799 23,798,584 24,299,928 22,631,648
Fire Department 22,850,999 20,238,097 19,957,114 19,888,536 19,624,919
Planning & Development Services 4,573,374 3,906,537 4,112,986 4,180,089 3,740,969
Parks and Recreation 9,419,475 7,775,598 7,569,136 9,350,892 9,129,079
Information Technology 6,530,030 5,634,704 5,463,764 4,591,351 4,488,885
Public Works 8,396,348 7,257,706 8,512,549 9,348,645 9,575,300
Library Services 1,302,332 1,205,559 1,207,017 1,186,313 1,118,522
Contributions 1,652,220 1,568,126 1,623,437 1,467,695 1,380,580
Other - - - - -
Capital Improvement Projects 3,451,129 1,932,363 1,557,074 289,042 319,406
Total Expenditures 81,696,727$ 87,680,867$ 85,856,082$ 87,077,758$ 82,128,812$
Other Financing Sources (Uses):
Sale of General Fixed Assets 2,471,525$ -$ -$ -$ -$
Operating Transfers In 29,433,354 23,628,416 22,015,275 19,427,607 19,245,943
Operating Transfers Out (9,181,253) (7,462,207) (3,234,568) (1,960,180) (3,031,702)
Total Other Financing Sources (Uses) 22,723,626$ 16,166,209$ 18,780,707$ 17,467,427$ 16,214,241$
Net Change in Fund Balance 28,153,213$ 14,095,339$ 7,381,495$ 1,569,998$ 1,569,784$
Fund Balance, Beginning of Year 48,320,092 35,742,062 28,360,567 26,790,569 22,514,523
Prior Period Adjustment - (1,517,309) - - 2,706,262
Fund Balance, End of Year 76,473,305$ 48,320,092$ 35,742,062$ 28,360,567$ 26,790,569$
Fiscal Year Ended September 30,
* Note: FYE 2022 Reduction due to ARPA Funding for government services.
35
TABLE 13 - MUNICIPAL SALES TAX HISTORY
The City has adopted the Municipal Sales and Use Tax Act, Texas, Tax Code, Chapter 321, which grants the City the power to impose and levy
a 1% Local Sales and Use Tax within the City; the proceeds are credited to the General Fund and are not pledged to the payment of the Obligations.
Collections and enforcements are effected through the offices of the Comptroller of Public Accounts, State of Texas, who remits the proceeds of
the tax, after deduction of a 2% service fee, to the City monthly. In May 1990, the voters of the City approved the imposition of an additional
sales and use tax of one-half of one percent (½ of 1%) for property tax reduction. The total sales tax rate for the City is 1.5%.
Fiscal
Year % of Equivalent of
Ended Total Ad Valorem Ad Valorem Per
9/30 Collected
(1)Tax Levy Tax Rate Capita
(2)
2019 29,955,649$ 63.76% 0.32$ 247$
2020 29,478,931 56.67% 0.30 240
2021 34,003,428 64.77% 0.35 273
2022 38,235,078 70.23% 0.38 306
2023 17,669,353 (3)29.18% 0.15 140
(1) Provided by the City.
(2) Based on population estimates provided by the City.
(3) Collections as of February 28, 2023.
The sales tax breakdown for the City is as follows:
FINANCIAL POLICIES
Basis of Accounting . . .The accounts of the City are organized and operated on the basis of funds and account groups. A fund is an
independent fiscal and accounting entity with a self-balancing set of accounts. Fund accounting segregates funds according to their intended
purpose and is used to aid management in demonstrating compliance with finance-related legal and contractual provisions. The minimum
number of funds is maintained consistent with legal and managerial requirements. Account groups are a reporting device to account for
certain assets and liabilities of the governmental funds not recorded directly in those funds. Government funds are used to account for the
City’s general government activities. Governmental fund types use the flow of current financial resources measurement focus and the
modified accrual basis of accounting.
General Fund . . . The General Fund is the City’s primary operating fund. It is used to account for all activities typically considered
governmental functions of the City. These include Public Safety, Public Works, Parks and Recreation, Economic and Planning and
Development Services, the support functions for these areas, and the administrative functions for the City.
The General Fund for the 2022-2023 fiscal year is influenced by current policies and any approved policy changes. The policies include
inter-fund equity; maintaining a balance between revenues and expenditures; and maintaining the level of service currently provided as the
City experiences residential and commercial growth.
The City’s financial policies are for a General Fund balance of 18% of budgeted appropriations at year end. To the extent that the General
Fund balance exceeds this amount, this surplus is to be expended in future years for one time expenditures such as capital items and short
term projects.
Debt Service Fund . . .The Debt Service Fund accounts for the servicing of general long-term debt not being financed by proprietary or
nonexpendable trust funds. It is the City’s policy to maintain at least 8 1/3% of annual appropriated expenditures for debt service and any
associated fees as the Debt Service Fund balance at fiscal yearend. The City is in compliance with that policy.
Budgetary Procedures . . .Prior to September 1, the City Manager submits to the City Council a proposed operating budget for the fiscal year
commencing the following October 1. The operating budget includes proposed expenditures and the means of financing them. All budget
requests are compiled by the Finance Department and presented with comparative and supporting data to the Mayor and City Council for
review. Public hearings are properly advertised and conducted at City Hall for taxpayer comments. Prior to September 27, the budget is
legally enacted through passage of an ordinance. The City Council must approve all transfers of budgeted amounts between departments
within any fund and any revision that alters the total expenditure of any fund. An amount is also budgeted each year for contingencies which
may arise.
Brazos County Sales & Use Tax 1/2 %
Property Tax Reduction 1/2 %
City Sales & Use Tax 1 %
State Sales & Use Tax 6 1/4 %
Total 8 1/4 %
36
THE COMBINED UTILITY SYSTEM
WATERWORKS SYSTEM
Since December 1981, the City has had the capability to produce and deliver 100% of its water. The system has been expanded to include
ten wells, with a firm capacity of 34 million gallons per day. The water is delivered to the distribution system by 19 miles of large diameter
parallel pipelines and two pumping stations.
Two of the wells mentioned above are shallow wells, less than 1,500 feet deep, drilled into the Carrizo and Sparta aquifers. The remaining
eight are deep wells, approximately 3,000 feet, drilled in the Simsboro Sand formation of the Carrizo-Wilcox aquifer. This is a very prolific
aquifer of high quality water that has the capacity to provide an adequate water supply for the City and surrounding communities through the
year 2060, and well beyond, if managed properly.
The Simsboro Sand, and all local aquifers, are regulated by the Brazos Valley Groundwater Conservation District, and permitting
requirements have been implemented for all new water wells. College Station has recently completed the construction of another Simsboro
well, Well #9 that will meet the City’s demands for water for many years into the future. Well #10 remains in the planning stages, and would
be constructed in future years, depending upon the rate of growth of water demands. College Station is also investigating other water supply
strategies for the future.
The City has completed a Water Reclamation project, which pumps effluent from the wastewater treatment plant to Veteran’s Park for
irrigation of playing fields, reducing the demand on the potable water system by approximately 350,000 gallons per day during the watering
season.
The City also has stand by generators at strategic locations sufficient to provide adequate potable water for health and safety during an
extended area-wide electrical power outage.
Water rates are established by ordinance, passed and approved by the City Council. The following rates became effective October 1, 2019.
The Residential rates are inclined block rates to encourage water conservation.
Type of Customer
Usage Charge (per 1,000 gallons)
Service Charge
Meter
Size
Residential, Commercial and Industrial 12.40 per mo. 3/4”
15.60 per mo. 1”
23.20 per mo. 1 1/2”
36.65 per mo. 2”
115.60 per mo. 3”
171.75 per mo. 4”
209.10 per mo. 6”
209.10 per mo. 8”
Residential $2.75 for usage from 0-10,000 gallons
$3.60 for usage from 11,000-15,000 gallons
$4.40 for usage from 16,000-20,000 gallons
$5.20 for usage from 21,000-25,000 gallons
$6.05 for usage from 26,000 gallons and more
Commercial $3.05 per 1,000 gallons
Commercial Irrigation Usage Charge
Commercial Irrigation Multifamily 3+ units
MUD #1 Residential and Commercial
$3.25 per 1,000 gallons
Rates as above with an added 50% surcharge
(Remainder of page intentionally left blank)
37
WASTEWATER SYSTEM
The City’s wastewater is treated by three City-owned wastewater treatment plants, Carter Creek Treatment Plant, Lick Creek Treatment Plant,
and Carter Lake Treatment Plant located within the City limits. The three plants have a combined treatment capacity of 11.5 mgd. An expansion
of the Lick Creek Treatment plant is currently underway and will increase the city’s combined treatment capacity to 14.5 mgd.
Sewer rates were established by ordinance, passed and approved by the City Council, and became effective on October 1, 2018
Residential (metered water) .......................................................... $21.29 including 4,000 gallons of metered water
Usage Charge ................................................................................ $4.26 per 1,000 gallons of additional metered water
$46.87 maximum per month
Residential (without meter to each unit)....................................... $27.09 per unit per month
Commercial and Industrial ........................................................... $18.27 per month
Usage Charge ................................................................................ $5.07 per 1,000 gallons of metered water usage
There are 3,363 customers (units) who receive their water from other water providers, but sewer is provided by the City of College Station.
Those customers pay an initial usage charge of $46.87 per month. After six months of documented water usage, rates can be adjusted
downward on a tiered scale.
ELECTRIC SUPPLY SOURCE
The City has multiple Power Purchase Agreements (PPAs) in order to meet its load requirements. The PPAs are currently with AEP Energy
Partners (AEPEP) and Garland Power and Light (GP&L). With AEPEP, the City has a fixed block, around the clock (ATC) PPA that expires
in 2027. The City also has a PPA with AEPEP for wind power that expires in 2028. The City has a load following PPA with GP&L that
expires in 2027. While the PPAs with AEPEP are considered base load power, the load following PPA with GP&L covers the load above the
base power provided by AEPEP's PPAs. GP&L is also the City’s Qualified Scheduling Entity (QSE). GP&L's QSE schedules and settles all
the contract resources owned by the City.
Other wholesale/power supply costs include Congestion costs, Ancillary Services and Transmission Cost of Service (TCOS). Since the City
owns transmission assets, it not only pays but also receives TCOS payments based on TCOS rates approved by the Public Utility Commission
of Texas.
The City owns 20 miles of 138kV transmission lines, eight substations, and 510 miles of distribution lines. ERCOT serves as the RTO/ISO
for the area.
The current electric rates were established by ordinance passed and approved by the City Council and became effective on January 26, 2023.
The electric rates are subject to a transmission delivery adjustment (TDA) charge which requires that the net energy charge per kilowatt hour
must be increased or decreased by an amount per kilowatt hour equal to additional transmission charges above those accounted for in the
wholesale rate. The TDA is currently set at $0.0166 per kilowatt hour of energy consumed.
In January 2009, College Station Utilities began offering residential electric customers renewable wind energy. In February 2010, the
renewable wind energy program was expanded to include commercial customers. Wind energy is generated from the South Trent Mesa Wind
Project located west of Abilene, Texas.
Single Family Residential.......................... Service Charge.............................................. $7.00 per month
plus:
kWh......................... ……………………… $0.1187 per kWh
Tax................................................................ 1.50%
Transmission Delivery Adjustment (TDA). $0.0166 per kWh
Master Metered Multiple Dwelling Units. Service Charge.............................................. $100.00 per month per master meter
plus:
kWh........................................................... $0.1187 per kWh
Tax................................................................ 1.50%
TDA.............................................................. $0.0166 per kWh
Small Commercial (1-10 KW demand).. Service Charge.............................................. $9.00 per month
plus:
First 1,000 kWh............................................. $0.1379 per kWh
Over 1,000 kWh............................................ $0.1032 per kWh
Tax................................................................ 8.25%
TDA.............................................................. $0.0166 per kWh
38
Medium Commercial (15-300 KW)......... Service Charge.............................................. $25.00 per month
plus:
Demand Charge (Per KW)............................ $11.44 per KW
Energy Charge All kWh................................ $0.0703 per KW
Minimum Monthly Charge............................ $199.10
Tax................................................................ 8.25%
TDA.............................................................. $0.0166 per kWh
Large Commercial (300 – 1,500 KW)...... Service Charge.............................................. $75.00 per month
plus:
Demand Charge (Per KW)............................ $11.44 per KW
Energy Charge All kWh................................ $0.0674 per KW
Minimum Monthly Charge............................ $3,514.50
Tax................................................................ 8.25%
TDA.............................................................. $0.0166 per kWh
Industrial (1,500 KW and over)................ Service Charge.............................................. $250.00 per month
plus:
Demand Charge (Per KW)............................ $10.84
Energy Charge (first 500,000 kWh).............. $0.0651 per KW
Minimum Monthly $16,538.34
Tax................................................................ 8.25%
TDA.............................................................. $0.0166 per kWh
WIND WATT RATES
Wind rates were established by Ordinance #2012-3397 on February 23, 2012, passed and approved by the City Council, and became effective
on March 1, 2012.
Participation Level: Residential & Commercial adder:
10%........................... $0.0005 per kWh
50%................................................................... $0.0027 per kWh
100%................................................................. $0.0055 per kWh
TABLE 14 - HISTORICAL UTILITY USERS (UNITS SERVED)
2022 2021 2020 2019 2018
Water Avg. Monthly Consumption (MGW) 463,182 381,256 361,040 369,689 383,830
Wastewater Avg. Daily Treatment (000's gal.) 8,389 9,430 7,500 8,239 7,468
Electric Avg. Monthly Consumption (KWH) 77,554,460 71,670,181 70,516,104 70,995,416 72,239,944
Fiscal Year Ended September 30,
TABLE 15 - TEN LARGEST UTILITY CUSTOMERS
Total Percent
FY 2022 KWH of KWH
Utility Customer Type of Business Consumption Consumed
Scott & White Clinc/Hospital/Pharmacy 19,143,080 2.05%
City of College Station Municipality 15,527,486 1.67%
Biotechnologies Texas LLC Medical 14,169,560 1.52%
HEB Grocery Retail 12,709,360 1.36%
CSISD Schools 11,323,960 1.21%
CHI St Joseph Health Hospital 7,856,920 0.84%
Dealer Computer Services Inc Retail 4,225,600 0.45%
Adam Development Bank/Office Space 4,131,300 0.44%
Cambridge 1 Holdings Apartment Complex 4,114,500 0.44%
Sterling A&M High Rise LLC Apartment Complex 4,077,920 0.44%
97,279,686 10.42%
39
TABLE 16 - CONDENSED STATEMENT OF OPERATIONS
2022 2021 2020 2019 2018
Revenues:
Electric 111,860,621 $ 102,794,575 $ 100,369,952 $ 102,443,382 $ 102,511,712 $
Water and Wastewater 43,115,216 37,512,695 37,628,189 34,313,203 33,602,131
Interest 621,501 216,542 1,322,832 2,654,945 1,262,551
Other 4,520,337 4,508,068 4,400,186 3,558,330 2,520,335
Total Revenues 160,117,675 $ 145,031,880 $ 143,721,159 $ 142,969,860 $ 139,896,729 $
Expenses:
Total Expenses 103,835,235 $ 133,786,264 $ (1)80,521,607 $ 81,725,180 $ 77,828,073 $
Net Available for Debt Service 56,282,440 $ 11,245,616 $ 63,199,552 $ 61,244,680 $ 62,068,656 $
Water Average Montly Consumption (MGW) 463,182 381,256 361,040 369,689 383,830
Wastewater Average Daily Treatment (000's gal.) 8,389 9,430 7,500 8,239 7,468
Electric Average Monthly Consumption (KWH) 77,554,460 71,670,181 70,516,104 70,995,416 72,239,944
For Fiscal Year Ended September 30,
(1) The increase in expenses relative to prior years was due predominantly for the costs associated with providing electricity during winter
storm Uri in February, 2021.
TABLE 17 – VALUE OF THE SYSTEM
2022 2021 2020 2019 2018
Utility Systems 705,850,379$ 685,380,672$ 656,481,245$ 617,910,408$ 579,717,873$
Construction in Progress 86,404,259 74,758,797 60,688,724 45,129,947 46,447,061
792,254,638$ 760,139,469$ 717,169,969$ 663,040,355$ 626,164,934$
Less: Accumulated Depreciation 317,298,514 301,465,663 282,503,564 263,680,722 246,243,993
Net System Value 474,956,124$ 458,673,806$ 434,666,405$ 399,359,633$ 379,920,941$
Fiscal Year Ended September 30,
TABLE 18 – CITY’S EQUITY IN THE SYSTEM
Resources 2022 2021 2020 2019 2018
Net System Value 474,956,124$ 458,673,806$ 434,666,405$ 399,359,633$ 379,920,941$
Current Assets 113,368,992 92,857,877 137,070,915 116,643,763 102,382,543
Restricted Assets 37,429,167 33,795,202 17,826,724 36,743,001 11,296,693
Deferred Charges 2,913,573 3,111,022 3,460,814 6,485,373 3,506,226
Total 628,667,856$ 588,437,907$ 593,024,858$ 559,231,770$ 497,106,403$
Obligations
Current Liabilities 15,509,615$ 14,547,777$ 16,876,003$ 14,711,183$ 12,467,547$
Current Liabilities Payable from
Restricted Assets 22,408,786 20,860,751 19,656,598 18,432,091 15,872,611
General Obligation Debt 38,822,501 46,376,401 44,570,802 45,850,605 52,738,157
Certificates of Obligation 175,444,978 152,211,425 133,490,618 126,583,979 91,642,717
Other Debt(1)6,369,843 8,558,478 8,633,818 10,773,356 8,016,706
Total Liabilities 258,555,723$ 242,554,832$ 223,227,839$ 216,351,214$ 180,737,738$
City's Equity in System 370,112,133$ 345,883,075$ 369,797,019$ 342,880,556$ 316,368,665$
Percentage of Equity in System 58.87% 58.78% 62.36% 61.31% 63.64%
Fiscal Year Ended September 30,
(1) Includes OPEB Net Pension Obligations.
TABLE 19 – UTILITY REVENUE BOND AND SYSTEM SUPPORTED GENERAL OBLIGATION DEBT SERVICE
40
Original Outstanding
Principal Principal
Amount as of 9/30/2022
2013 (2)10,230,000 6,560,000
2013 (1)(3)20,760,000 1,740,000
2014 (2)34,005,000 16,460,000
2014 (1)(3)35,865,000 4,465,000
2016 (2)25,720,000 5,315,000
2016 (1)(3)40,890,000 11,910,000
2017 (2)57,725,000 10,140,000
2017 (1)(3)29,800,000 8,270,000
2018 (2)37,380,000 16,635,000
2019 (2)74,510,000 33,975,000
2020 (2)21,055,000 17,920,000
2020 (1)15,355,000 4,900,000
2020A (1)16,930,000 11,091,414
2021 (2)55,395,000 31,850,000
2022 (2)69,500,000 19,350,000
545,120,000 $ 200,581,414 $
Series
(1) Represents refunding bonds.
(2) Certificates of Obligation supported in whole or in part by Utility System revenues.
(3) General Obligation Bonds supported in part by the Utility System revenues.
INVESTMENTS
The City invests its investable funds in investments authorized by Texas law in accordance with investment policies approved by the City
Council. Both state law and the City’s investment policies are subject to change.
LEGAL INVESTMENTS
Authorized investments are summarized as follows: (1) obligations, including letters of credit, of the United States or its agencies and
instrumentalities, including the Federal Home Loan Banks; (2) direct obligations of the State or its agencies and instrumentalities; (3)
collateralized mortgage obligations directly issued by a federal agency or instrumentality of the United States, the underlying security for
which is guaranteed by an agency or instrumentality of the United States; (4) other obligations, the principal and interest of which are
unconditionally guaranteed or insured by, or backed by the full faith and credit of, the State or the United States or their respective agencies
and instrumentalities, including obligations that are fully guaranteed or insured by the Federal Deposit Insurance Corporation or by the
explicit full faith and credit of the United States; (5) obligations of states, agencies, counties, cities, and other political subdivisions of any
state rated as to investment quality by a nationally recognized investment rating firm not less than “A” or its equivalent; (6) bonds issued,
assumed or guaranteed by the State of Israel; (7) interest-bearing banking deposits that are guaranteed or insured by the Federal Deposit
Insurance Corporation or its successor, or the National Credit Union Share Insurance Fund or its successor; (8) interest-bearing banking
deposits other than those described by clause (7) if (A) the funds invested in the banking deposits are invested through: (i) a broker with a
main office or branch office in this State that the City selects from a list the City Council or a designated investment committee of the City
adopts as required by Section 2256.025, Texas Government Code; or (ii) a depository institution with a main office or branch office in the
State that the City selects; (B) the broker or depository institution selected as described by (A) above arranges for the deposit of the funds in
the banking deposits in one or more federally insured depository institutions, regardless of where located, for the City’s account; (C) the full
amount of the principal and accrued interest of the banking deposits is insured by the United States or an instrumentality of the United States;
and (D) the City appoints as the City’s custodian of the banking deposits issued for the City’s account: (i) the depository institution selected
as described by (A) above; (ii) an entity described by Section 2257.041(d), Texas Government Code; or (iii) a clearing broker dealer registered
with the SEC and operating under SEC Rule 15c3-3; (9) (i) certificates of deposit or share certificates meeting the requirements of Chapter
2256, Texas Government Code (the “Public Funds Investment Act”), that are issued by an institution that has its main office or a branch
office in the State and are guaranteed or insured by the Federal Deposit Insurance Corporation or the National Credit Union Share Insurance
Fund, or their respective successors, and are secured as to principal by obligations described in clauses (1) through (8) or in any other manner
and provided for by law for City deposits, or (ii) certificates of deposits where (a) the funds are invested by the City through (A) a broker
that has its main office or a branch office in the State and is selected from a list adopted by the City as required by law, or (B) a depository
institution that has its main office or branch office in the State that is selected by the City, (b) the broker or the depository institution selected
by the City arranges for the deposit of the funds in certificates of deposit in one or more federally insured depository institutions, wherever
located, for the account of the City, (c) the full amount of the principal and accrued interest of each of the certificates of deposit is insured by
the United States or an instrumentality of the United States, and (d) the City appoints the depository institution selected under (a) above, a
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custodian as described by Section 2257.041(d), Texas Government Code, or a clearing brokerdealer registered with the SEC and operating
pursuant to SEC Rule 15c3-3 (17 C.F.R. Section 240.15c3-3) as custodian for the City with respect to the certificates of deposit; (10) fully
collateralized repurchase agreements as defined in the Public Funds Investment Act, that have a defined termination date, are secured by a
combination of cash and obligations described in clauses (1) or (13) in this paragraph , require the securities being purchased by the City or
cash held by the City to be pledged to the City, held in the City’s name, and deposited at the time the investment is made with the City or
with a third party selected and approved by the City, and are placed through a primary government securities dealer, as defined by the Federal
Reserve, or a financial institution doing business in the State; (11) securities lending programs if (i) the securities loaned under the program
are 100% collateralized, a loan made under the program allows for termination at any time and a loan made under the program is either
secured by (a) obligations that are described in clauses (1) through (8) above, (b) irrevocable letters of credit issued by a state or national
bank that is continuously rated by a nationally recognized investment rating firm at not less than “A” or its equivalent or (c) cash invested in
obligations described in clauses (1) through (8) above, clauses (13) through (15) below, or an authorized investment pool; (ii) securities held
as collateral under a loan are pledged to the City, held in the City’s name and deposited at the time the investment is made with the City or a
third party designated by the City; (iii) a loan made under the program is placed through either a primary government securities dealer or a
financial institution doing business in the State; and (iv) the agreement to lend securities has a term of one year or less; (12) certain bankers’
acceptances with stated maturity of 270 days or less, if the short-term obligations of the accepting bank or its parent are rated not less than
“A-1” or “P-1” or the equivalent by at least one nationally recognized credit rating agency; (13) commercial paper with a stated maturity of
365 days or less that is rated not less than “A-1” or “P-1” or the equivalent by either (a) two nationally recognized credit rating agencies or
(b) one nationally recognized credit rating agency if the paper is fully secured by an irrevocable letter of credit issued by a United States or
state bank; (14) no-load money market mutual funds registered with and regulated by the SEC that provide the City with a prospectus and
other information required by the Securities Exchange Act of 1934 or the Investment Company Act of 1940 and that comply with federal
SEC Rule 2a-7 (17 C.F.R. Section 270.2a- 7), promulgated under the Investment Company Act of 1940 (15 U.S.C. Section 80a-1 et seq.);
and (15) no-load mutual funds registered with the SEC that have an average weighted maturity of less than two years, and have either (a) a
duration of one year or more and invest exclusively in obligations described in under this heading, or (b) a duration of less than one year and
the investment portfolio is limited to investment grade securities, excluding asset-backed securities. In addition, bond proceeds may be
invested in guaranteed investment contracts that have a defined termination date and are secured by obligations, including letters of credit,
of the United States or its agencies and instrumentalities, other than the prohibited obligations described below, in an amount at least equal
to the amount of bond proceeds invested under such contract.
A political subdivision such as the City may enter into securities lending programs if (i) the securities loaned under the program are 100%
collateralized, a loan made under the program allows for termination at any time and a loan made under the program is either secured by (a)
obligations that are described in clauses (1) through (8) above, other than the prohibited obligations described below, (b) irrevocable letters
of credit issued by a state or national bank that is continuously rated by a nationally recognized investment rating firm at not less than A or
its equivalent or (c) cash invested in obligations described in clauses (1) through (8) above, clauses (13) through (15) above, or an authorized
investment pool; (ii) securities held as collateral under a loan are pledged to the City, held in the City’s name and deposited at the time the
investment is made with the City or a third party designated by the City; (iii) a loan made under the program is placed through either a primary
government securities dealer or a financial institution doing business in the State; and (iv) the agreement to lend securities has a term of one
year or less.
The City may invest in such obligations directly or through government investment pools that invest solely in such obligations provided that
the pools are rated no lower than AAA or AAAm or an equivalent by at least one nationally recognized rating service, if the City Council
authorizes such investment in the particular pool by order, ordinance, or resolution and the investment pool complies with the requirements
of Section 2256.016, Texas Government Code. The City may also contract with an investment management firm registered (x) under the
Investment Advisers Act of 1940 (15 U.S.C. Section 80b-1 et seq.), or (y) with the State Securities Board to provide for the investment and
management of its public funds or other funds under its control for a term up to two years, but the City retains ultimate responsibility as
fiduciary of its assets. In order to renew or extend such a contract, the City must do so by ordinance, order or resolution.
The City is specifically prohibited from investing in: (1) obligations whose payment represents the coupon payments on the outstanding
principal balance of the underlying mortgage-backed security collateral and pays no principal; (2) obligations whose payment represents the
principal stream of cash flow from the underlying mortgage-backed security and bears no interest; (3) collateralized mortgage obligations
that have a stated final maturity of greater than 10 years; and (4) collateralized mortgage obligations the interest rate of which is determined
by an index that adjusts opposite to the changes in a market index.
INVESTMENT POLICIES
Under Texas law, the City is required to invest its funds under written investment policies that primarily emphasize safety of principal and
liquidity; that address investment diversification, yield, maturity, and the quality and capability of investment management; and that includes a
list of authorized investments for City funds, maximum allowable stated maturity of any individual investment and the maximum average dollar-
weighted maturity allowed for pooled fund groups, methods to monitor the market price of investments acquired with public funds, a requirement
for settlement of all transactions, except investment pool funds and mutual funds, on a delivery versus payment basis, and procedures to monitor
rating changes in investments acquired with public funds and the liquidation of such investments consistent with the PFIA. All City funds must
be invested consistent with a formally adopted “Investment Strategy Statement” that specifically addresses each funds’ investment. Each
Investment Strategy Statement will describe its objectives concerning (1) suitability of investment type, (2) preservation and safety of principal,
(3) liquidity, (4) marketability of each investment, (5) diversification of the portfolio, and (6) yield.
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Under Texas law, City investments must be made “with judgment and care, under prevailing circumstances, that a person of prudence,
discretion, and intelligence would exercise in the management of the person’s own affairs, not for speculation, but for investment, considering
the probable safety of capital and the probable income to be derived.” At least quarterly the investment officers of the City will submit an
investment report detailing (1) the investment position of the City, (2) that all investment officers jointly prepared and signed the report, (3)
the beginning market value and ending market value for each pooled fund group, (4) the book value and market value of each separately
listed asset at the end of the reporting period, (5) the maturity date of each separately invested asset, (6) the account or fund or pooled fund
group for which each individual investment was acquired, and (7) the compliance of the investment portfolio as it relates to: (a) adopted
investment strategy statements and (b) state law. No person may invest City funds without express written authority from the City Council.
ADDITIONAL PROVISIONS
Under Texas law the City is additionally required to: (1) annually review its adopted policies and strategies; (2) require any investment officers’
with personal business relationships or relatives with firms seeking to sell securities to the entity to disclose the relationship and file a
statement with the Texas Ethics Commission and the City Council; (3) require the registered principal of firms seeking to sell securities to
the City to: (a) receive and review the City’s investment policy, (b) acknowledge that reasonable controls and procedures have been
implemented to preclude imprudent investment activities, and (c) deliver a written statement attesting to these requirements; (4) perform an
annual audit of the management controls on investments and adherence to the City’s investment policy; (5) provide specific investment
training for the Finance Director, Treasurer, Assistant City Manager and investment officers; (6) restrict reverse repurchase agreements to
not more than 90 days and restrict the investment of reverse repurchase agreement funds to no greater than the term of the reverse repurchase
agreement; (7) restrict the investment in non-money market mutual funds of any portion of bond proceeds, reserves and funds held for debt
service and to no more than 15% of the entity’s monthly average fund balance, excluding bond proceeds and reserves and other funds held
for debt service; (8) require local government investment pools to conform to the new disclosure, rating, net asset value, yield calculation,
and advisory board requirements and (9) at least annually review, revise, and adopt a list of qualified brokers that are authorized to engage
in investment transactions with the City.
Under Texas law, the City may contract with an investment management firm registered under the Investment Advisers Act of 1940 (15
U.S.C. Section 80b-1 et seq.) or with the State Securities Board to provide for the investment and management of its public funds or other
funds under its control for a term up to two years, but the City retains ultimate responsibility as fiduciary of its assets. In order to renew or
extend such a contract, the City must do so by order, ordinance or resolution. The City has not contracted with, and has no present intention
of contracting with, any such investment management firm or the State Securities Board to provide such services.
CITY’S INVESTMENT POLICY
The Assistant City Manager or his designee will promptly cause all City funds to be deposited with the bank depository and invested in
accordance with the provisions of the current Bank Depository Agreement or in any negotiable instrument that the City Council has authorized
under the provisions of the PFIA, as amended, and in accordance with the City Council approved Investment Policies.
At the end of each fiscal year, a report on investment performance will be provided to the City Council. In conjunction with the quarterly
financial report, the Assistant City Manager or his designee will prepare and provide a written recapitulation of the City’s investment portfolio
to the Council, detailing each City investment instrument with its rate of return and maturity date.
The City's adopted investment policy permits the City to invest its funds and funds under its control in all of the enumerated investments
authorized by the PFIA.
TABLE 20 - CURRENT INVESTMENTS
As of February 28, 2023, the City’s investable funds were invested in the following categories:
Book Market
Investment Type Value Value
Cash 5,000,000 $ 5,000,000 $
Local Government Investment Pool 27,757,451 27,757,451
Money Market Mutual Fund 335,584,828 335,584,828
Invesments - Agencies 50,000,000 48,986,450
418,342,279$ 417,328,729$
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TAX MATTERS
OPINION . . . On the date of initial delivery of the Obligations, McCall, Parkhurst & Horton L.L.P., Dallas, Texas, Bond Counsel, will render
its opinion that, in accordance with statutes, regulations, published rulings and court decisions existing on the date thereof (“Existing Law”),
(1) interest on the Obligations for federal income tax purposes will be excludable from the “gross income” of the holders thereof and (2) the
Obligations will not be treated as “specified private activity bonds” the interest on which would be included as an alternative minimum tax
preference item under section 57(a)(5) of the Internal Revenue Code of 1986 (the “Code”). Except as stated above, Bond Counsel will
express no opinion as to any other federal, state or local tax consequences of the purchase, ownership or disposition of the Obligations. See
APPENDIX C - Forms of Opinions of Bond Counsel.
In rendering its opinion, Bond Counsel will rely upon (a) certain information and representations of the City, including information and
representations contained in the City's federal tax certificate, and (b) covenants of the City contained in the Ordinances authorizing the
Obligations relating to certain matters, including arbitrage and the use of the proceeds of the Obligations and the property financed or
refinanced therewith. Failure of the City to comply with these representations or covenants could cause the interest on the Obligations, as
the case may be, to become includable in gross income retroactively to their date of issuance.
The Code and the regulations promulgated thereunder contain a number of requirements that must be satisfied subsequent to the issuance of the
Obligations in order for interest on the Obligations to be, and to remain, excludable from gross income for federal income tax purposes. Failure
to comply with such requirements may cause interest on the Obligations to be included in gross income retroactively to the date of issuance of
the Obligations. The opinions of Bond Counsel are rendered in reliance upon the compliance by the City with such requirements, and Bond
Counsel has not been retained to monitor compliance with these requirements subsequent to the issuance of the Obligations.
Bond Counsel's opinions are not a guarantee of a result, but represent its legal judgment based upon its review of Existing Law and reliance
on the aforementioned information, representations and covenants. Existing Law is subject to change by the Congress and to subsequent
judicial and administrative interpretation by the courts and the Department of the Treasury. There can be no assurance that Existing Law or
the interpretation thereof will not be changed in a manner which would adversely affect the tax treatment of the purchase, ownership or
disposition of the Obligations.
A ruling was not sought from the Internal Revenue Service by the Issuer with respect to the Obligations or the property financed or refinanced
with proceeds of the Obligations. No assurances can be given as to whether the Internal Revenue Service will commence an audit of the
Obligations, or as to whether the Internal Revenue Service would agree with the opinion of Bond Counsel. If an Internal Revenue Service audit
is commenced, under current procedures the Internal Revenue Service is likely to treat the Issuer as the taxpayer and the Obligations holders
may have no right to participate in such procedure. No additional interest will be paid upon any determination of taxability.
FEDERAL INCOME TAX ACCOUNTING TREATMENT OF ORIGINAL ISSUE DISCOUNT . . . The initial public offering price to be paid for one or
more maturities of the Obligations may be less than the principal amount thereof or one or more periods for the payment of interest on the
Obligations may not be equal to the accrual period or be in excess of one year (the “Original Issue Discount Obligations”). In such event,
the difference between (i) the “stated redemption price at maturity” of each Original Issue Discount Obligation, and (ii) the initial offering
price to the public of such Original Issue Discount Obligation would constitute original issue discount. The “stated redemption price at
maturity” means the sum of all payments to be made on the Obligations less the amount of all periodic interest payments. Periodic interest
payments are payments which are made during equal accrual periods (or during any unequal period if it is the initial or final period) and
which are made during accrual periods which do not exceed one year.
Under Existing Law, any owner who has purchased such Original Issue Discount Obligation in the initial public offering is entitled to exclude
from gross income (as defined in section 61 of the Code) an amount of income with respect to such Original Issue Discount Obligation equal
to that portion of the amount of such original issue discount allocable to the accrual period. For a discussion of certain collateral federal tax
consequences, see discussion set forth below.
In the event of the redemption, sale or other taxable disposition of such Original Issue Discount Obligation prior to stated maturity, however,
the amount realized by such owner in excess of the basis of such Original Issue Discount Obligation in the hands of such owner (adjusted
upward by the portion of the original issue discount allocable to the period for which such Original Issue Discount Obligation was held by
such initial owner) is includable in gross income.
Under Existing Law, the original issue discount on each Original Issue Discount Obligation is accrued daily to the stated maturity thereof (in
amounts calculated as described below for each accrual period within each accrual period) and the accrued amount is added to an initial
owner's basis for such Original Issue Discount Obligation for purposes of determining the amount of gain or loss recognized by such owner
upon the redemption, sale or other disposition thereof. The amount to be added to basis for each accrual period is equal to (a) the sum of the
issue price and the amount of original issue discount accrued in prior periods multiplied by the yield to stated maturity (determined on the
basis of compounding at the close of each accrual period and properly adjusted for the length of the accrual period) less (b) the amounts
payable as current interest during such accrual period on such Original Issue Discount Obligation.
The federal income tax consequences of the purchase, ownership, redemption, sale or other disposition of Original Issue Discount Obligations
which are not purchased in the initial offering at the initial offering price may be determined according to rules which differ from those
described above. All owners of Original Issue Discount Obligations should consult their own tax advisors with respect to the determination
for federal, state and local income tax purposes of the treatment of interest accrued upon redemption, sale or other disposition of such Original
Issue Discount Obligations and with respect to the federal, state, local and foreign tax consequences of the purchase, ownership, redemption,
sale or other disposition of such Original Issue Discount Obligations.
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COLLATERAL FEDERAL INCOME TAX CONSEQUENCES . . . The following discussion is a summary of certain collateral federal income tax
consequences resulting from the purchase, ownership or disposition of the Obligations. This discussion is based on Existing Law, which is
subject to change or modification, retroactively.
The following discussion is applicable to investors, other than those who are subject to special provisions of the Code, such as financial
institutions, property and casualty insurance companies, life insurance companies, individual recipients of Social Security or Railroad
Retirement benefits, individuals allowed an earned income credit, certain S corporations with accumulated earnings and profits and excess
passive investment income, foreign corporations subject to the branch profits tax, taxpayers qualifying for the health insurance premium
credit and taxpayers who may be deemed to have incurred or continued indebtedness to purchase tax-exempt obligations.
THE DISCUSSION CONTAINED HEREIN MAY NOT BE EXHAUSTIVE. INVESTORS, INCLUDING THOSE WHO ARE SUBJECT
TO SPECIAL PROVISIONS OF THE CODE, SHOULD CONSULT THEIR OWN TAX ADVISORS AS TO THE TAX TREATMENT
WHICH MAY BE ANTICIPATED TO RESULT FROM THE PURCHASE, OWNERSHIP AND DISPOSITION OF TAX-EXEMPT
OBLIGATIONS BEFORE DETERMINING WHETHER TO PURCHASE THE OBLIGATIONS.
Interest on the Obligations may be includable in certain corporation’s “adjusted financial statement income” determined under section 56A
of the Code to calculate the alternative minimum tax imposed by section 55 of the Code.
Under section 6012 of the Code, holders of tax-exempt obligations, such as the Obligations, may be required to disclose interest received or
accrued during each taxable year on their returns of federal income taxation.
Section 1276 of the Code provides for ordinary income tax treatment of gain recognized upon the disposition of a tax-exempt obligation,
such as the Obligations, if such obligation was acquired at a “market discount” and if the fixed maturity of such obligation is equal to, or
exceeds, one year from the date of issue. Such treatment applies to “market discount bonds” to the extent such gain does not exceed the
accrued market discount of such bonds; although for this purpose, a de minimis amount of market discount is ignored. A “market discount
bond” is one which is acquired by the holder at a purchase price which is less than the stated redemption price at maturity or, in the case of a
bond issued at an original issue discount, the “revised issue price” (i.e., the issue price plus accrued original issue discount). The “accrued
market discount” is the amount which bears the same ratio to the market discount as the number of days during which the holder holds the
obligation bears to the number of days between the acquisition date and the final maturity date.
STATE, LOCAL AND FOREIGN TAXES . . . Investors should consult their own tax advisors concerning the tax implications of the purchase,
ownership or disposition of the Obligations under applicable state or local laws. Foreign investors should also consult their own tax advisors
regarding the tax consequences unique to investors who are not United States persons.
INFORMATION REPORTING AND BACKUP WITHHOLDING . . . Subject to certain exceptions, information reports describing interest income,
including original issue discount, with respect to the Obligations will be sent to each registered holder and to the IRS. Payments of interest
and principal may be subject to backup withholding under section 3406 of the Code if a recipient of the payments fails to furnish to the payor
such owner’s social security number or other taxpayer identification number (“TIN”), furnishes an incorrect TIN, or otherwise fails to
establish an exemption from the backup withholding tax. Any amounts so withheld would be allowed as a credit against the recipient’s federal
income tax. Special rules apply to partnerships, estates and trusts, and in certain circumstances, and in respect of Non-U.S. Holders,
certifications as to foreign status and other matters may be required to be provided by partners and beneficiaries thereof.
FUTURE AND PROPOSED LEGISLATION . . . Tax legislation, administrative actions taken by tax authorities, or court decisions, whether at the
federal or state level, may adversely affect the tax-exempt status of interest on the Obligations under federal or state law, and could affect the
market price or marketability of the Obligations. Any of the foregoing could limit the value of certain deductions and exclusions, including
the exclusion for tax-exempt interest. The likelihood of any of the foregoing becoming effective cannot be predicted. Prospective purchasers
of the Obligations should consult their own tax advisors regarding the foregoing matters.
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CONTINUING DISCLOSURE OF INFORMATION
In the Ordinances, the City has made the following agreement for the benefit of the holders and beneficial owners of Obligations. The City
is required to observe the agreement for so long as it remains obligated to advance funds to pay the Obligations. Under the agreement, the
City will be obligated to provide certain updated financial information and operating data annually, and timely notice of specified events, to
the Municipal Securities Rulemaking Board (the “MSRB”). This information will be publicly available at no cost on the Electronic Municipal
Market Access of the MSRB, with the web address www.emma.msrb.org (“EMMA”). The agreement specifies that all documents provided
to the MSRB shall be accompanied by identifying information as prescribed by the MSRB.
ANNUAL REPORTS . . . The City will provide certain updated financial information and operating data to the MSRB on an annual basis in an
electronic format that is prescribed by the MSRB and available via the Electronic Municipal Market Access System ("EMMA") at
www.emma.msrb.org. The information to be updated includes all quantitative financial information and operating data with respect to the
City of the general type included in this Official Statement under Tables numbered 1 through 6; 8 through 20 and in Appendix B. The City
will update and provide the information in Tables 1 through 6 and 8 through 20 within six months after the end of each fiscal year ending in
and after 2023. The City will additionally provide audited financial statements when and if available, and in any event, within 12 months
after the end of each fiscal year ending in or after 2023. If the audit of such financial statements is not complete within 12 months after any
such fiscal year end, then the City will file unaudited financial statements within such 12 month period and audited financial statements for
the applicable fiscal year, when and if the audit report on such statements becomes available. Any such financial statements will be prepared
in accordance with the accounting principles described in Appendix B or such other accounting principles as the City may be required to
employ from time to time pursuant to State law or regulation.
The financial information and operating data to be provided may be set forth in full in one or more documents or may be included by specific
reference to any document available to the public on the MSRB’s Internet Web site identified below or filed with the United States Securities
and Exchange Commission (the "SEC"), as permitted by SEC Rule 15c2-12 (the "Rule").
The City’s current fiscal year end is September 30. Accordingly, the City must provide updated information included in Tables 1 through 6
and 8 through 20 by the last day of March in each year, and audited financial statements for the preceding fiscal year (or unaudited financial
statements if the audited financial statements are not yet available) as described above. If the City changes its fiscal year, it will file notice of
the change (and of the date of the new fiscal year end) with the MSRB prior to the next date by which the City otherwise would be required
to provide financial information and operating data as set forth above.
EVENT NOTICES . . . The City will also provide timely notices of certain events to the MSRB. The City will provide notice of any of the
following events with respect to the Obligations to the MSRB in a timely manner (but not in excess of ten business days after the occurrence
of the event): (1) principal and interest payment delinquencies; (2) non-payment related defaults, if material; (3) unscheduled draws on debt
service reserves reflecting financial difficulties; (4) unscheduled draws on credit enhancements reflecting financial difficulties; (5)
substitution of credit or liquidity providers, or their failure to perform; (6) adverse tax opinions, the issuance by the Internal Revenue Service
of proposed or final determinations of taxability, Notices of Proposed Issue (IRS Form 5701-TEB), or other material notices or determinations
with respect to the tax status of the Obligations, or other material events affecting the tax status of the Obligations; (7) modifications to rights
of holders of the Obligations, if material; (8) Obligation calls, if material, and tender offers; (9) defeasances; (10) release, substitution, or sale
of property securing repayment of the Obligations, if material; (11) rating changes; (12) bankruptcy, insolvency, receivership, or similar
event of the City, which shall occur as described below; (13) the consummation of a merger, consolidation, or acquisition involving the City
or the sale of all or substantially all of its assets, other than in the ordinary course of business, the entry into of a definitive agreement to
undertake such an action or the termination of a definitive agreement relating to any such actions, other than pursuant to its terms, if material;
(14) appointment of a successor or additional trustee or the change of name of a trustee, if material; and (15) Incurrence of a financial
obligation of the City, if material, or agreement to covenants, events of default, remedies, priority rights, or other similar terms of a financial
obligation of the City, any of which affect security holders, if material; and (16) Default, event of acceleration, termination event,
modification of terms, or other similar events under the terms of a financial obligation of the City, any of which reflect financial difficulties.
In addition, the City will provide timely notice of any failure by the City to provide annual financial information in accordance with their
agreement described above under “Annual Reports.” Neither the Obligations nor the Ordinances provides for debt service reserves, liquidity
enhancement, or credit enhancement. In addition, the City will provide timely notice of any failure by the City to provide annual financial
information in accordance with their agreement described above under “Annual Reports.”
For the events listed in clause (15) and (16) above, the term “financial obligation” means a: (A) debt obligation; (B) derivative instrument
entered into in connection with, or pledged as security or a source of payment for, an existing or planned debt obligation; or (c) a guarantee
of either (A) or (B). The term “financial obligation” shall not include municipal securities as to which a final official statement has been
provided to the MSRB consistent with the Rule.
For these purposes, any event described in clause (12) is considered to occur when any of the following occur: the appointment of a receiver,
fiscal agent, or similar officer for the City in a proceeding under the United States Bankruptcy Code or in any other proceeding under state
or federal law in which a court or governmental authority has assumed jurisdiction over substantially all of the assets or business of the City,
or if such jurisdiction has been assumed by leaving the existing governing body and officials or officers in possession but subject to the
supervision and orders of a court or governmental authority, or the entry of an order confirming a plan of reorganization, arrangement, or
liquidation by a court or governmental authority having supervision or jurisdiction over substantially all of the assets or business of the City.
The City will provide each notice described in the previous paragraph to the MSRB through EMMA, in accordance with the Rule.
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LIMITATIONS AND AMENDMENTS . . . The City has agreed to update information and to provide notices of specified events only as described
above. The City has not agreed to provide other information that may be relevant or material to a complete presentation of its financial results
of operations, condition, or prospects or agreed to update any information that is provided, except as described above. The City makes no
representation or warranty concerning such information or concerning its usefulness to a decision to invest in or sell Obligations at any future
date. The City disclaims any contractual or tort liability for damages resulting in whole or in part from any breach of its continuing disclosure
agreement or from any statement made pursuant to its agreement, although holders of Obligations may seek a writ of mandamus to compel
the City to comply with its agreement.
The City may amend its continuing disclosure agreement from time to time to adapt to changed circumstances that arise from a change in
legal requirements, a change in law, or a change in the identity, nature, status, or type of operations of the City, if (i) the agreement, as
amended, would have permitted an underwriter to purchase or sell Obligations in the offering described herein in compliance with the Rule,
taking into account any amendments or interpretations of the Rule to the date of such amendment, as well as such changed circumstances,
and (ii) either (a) the holders of a majority in aggregate principal amount of the outstanding Obligations consent to the amendment or (b) any
person unaffiliated with the City (such as nationally recognized bond counsel) determines that the amendment will not materially impair the
interests of the holders and beneficial owners of the Obligations. If the City so amends the agreement, it has agreed to include with the next
financial information and operating data provided in accordance with its agreement described above under “Annual Reports” an explanation,
in narrative form, of the reasons for the amendment and of the impact of any change in the type of financial information and operating data
so provided.
COMPLIANCE WITH PRIOR UNDERTAKINGS . . . During the last five years, the City has not failed to comply in any material respect with any
material provisions of the continuing disclosure agreements made by the City in accordance with Rule 15c2-12.
OTHER INFORMATION
RATINGS
The presently outstanding tax supported debt of the City are rated “Aa1” by Moody's and “AA+” by S&P, without regard to credit
enhancement. Applications have been made to Moody’s and S&P for contract ratings on the Obligations. The ratings reflect only the
respective views of such organizations and the City makes no representation as to the appropriateness of the ratings. There is no assurance
that such ratings will continue for any given period of time or that they will not be revised downward or withdrawn entirely by either or both
of such rating companies, if in the judgment of either or both companies, circumstances so warrant. Any such downward revision or
withdrawal of such ratings, or either of them, may have an adverse effect on the market price of the Obligations.
LITIGATION
The City is a party to legal proceedings, many of which occur in the normal course of operations. It is not possible at the present time to
estimate ultimate outcome or liability, if any, of the city with respect to the various proceedings. The City’s management believes that the
ultimate outcome of the various lawsuits will not have a material adverse effect on the City’s financial position.
REGISTRATION AND QUALIFICATION OF OBLIGATIONS FOR SALE
The sale of the Obligations has not been registered under the federal Securities Act of 1933, as amended, in reliance upon the exemption
provided thereunder by Section 3(a)(2); and the Obligations have not been qualified under the Securities Act of Texas in reliance upon various
exemptions contained therein; nor have the Obligations been qualified under the securities acts of any jurisdiction. The City assumes no
responsibility for qualification of the Obligations under the securities laws of any jurisdiction in which the Obligations may be sold, assigned,
pledged, hypothecated or otherwise transferred. This disclaimer of responsibility for qualification for sale or other disposition of the
Obligations must not be construed as an interpretation of any kind with regard to the availability of any exemption from securities registration
provisions.
LEGAL INVESTMENTS AND ELIGIBILITY TO SECURE PUBLIC FUNDS IN TEXAS
Section 1201.041 of the Public Security Procedures Act (Chapter 1201, Texas Government Code) provides that the Obligations are negotiable
instruments, investment securities governed by Chapter 8, Texas Business and Commerce Code, and are legal and authorized investments
for insurance companies, fiduciaries, and trustees, and for the sinking funds of municipalities or other political subdivisions or public agencies
of the State of Texas. With respect to investment in the Obligations by municipalities or other political subdivisions or public agencies of
the State of Texas, the PFIA requires that the Obligations be assigned a rating of at least “A” or its equivalent as to investment quality by a
national rating agency. See “OTHER INFORMATION - Ratings” herein. In addition, various provisions of the Texas Finance Code provide
that, subject to a prudent investor standard, the Obligations are legal investments for state banks, savings banks, trust companies with at
capital of one million dollars or more, and savings and loan associations. The Obligations are eligible to secure deposits of any public funds
of the State, its agencies, and its political subdivisions, and are legal security for those deposits to the extent of their market value. The City
has made no investigation of other laws, rules, regulations or investment criteria which might apply to such institutions or entities or which
might limit the suitability of the Obligations for any of the foregoing purposes or limit the authority of such institutions or entities to purchase
or invest in the Obligations for such purposes. No review by the City has been made of the laws in other states to determine whether the
Obligations are legal investments for various institutions in those states.
47
LEGAL MATTERS
The City will furnish to the Initial Purchaser a complete transcript of proceedings had incident to the authorization and issuance of the
Obligations, including the unqualified approving legal opinion of the Attorney General of Texas approving the Initial Obligations and to the
effect that the Obligations are valid and legally binding obligations of the City, and based upon examination of such transcript of proceedings,
the approving legal opinions of Bond Counsel. The customary closing papers, including a certificate to the effect that no litigation of any
nature has been filed or is then pending to restrain the issuance and delivery of the Obligations or which would affect the provision made for
their payment or security, or in any manner questioning the validity of the Obligations will also be furnished. In its capacity as Bond Counsel,
such firm has reviewed the information describing the Obligations in the Notices of Sale and Bidding Instructions, the Official Bid Forms
and this Official Statement to verify that such information conforms to the provisions of the Ordinances. In connection with the transactions
described in the Official Statement, Bond Counsel represents only the City. The City expects to pay the legal fees of Bond Counsel for
services rendered in connection with the issuance of the Obligations from proceeds of the Obligations. The legal opinion will accompany the
Obligations deposited with DTC or will be printed on the Obligations in the event of the discontinuance of the Book-Entry-Only System.
The various legal opinions to be delivered concurrently with the delivery of the Obligations express the professional judgment of the attorneys
rendering the opinions as to the legal issues explicitly addressed therein. In rendering a legal opinion the attorney does not become an insurer
or guarantor of the expression of professional judgment, of the transaction opined upon, or of the future performance of the parties to the
transaction. Nor does the rendering of an opinion guarantee the outcome of any legal dispute that may arise from the transaction.
AUTHENTICITY OF FINANCIAL DATA AND OTHER INFORMATION
The financial data and other information contained herein have been obtained from City records, audited financial statements and other
sources which are believed to be reliable. There is no guarantee that any of the assumptions or estimates contained herein will be realized.
All of the summaries of the statutes, documents and resolutions contained in this Official Statement are made subject to all of the provisions
of such statutes, documents and resolutions. These summaries do not purport to be complete statements of such provisions and reference is
made to such documents for further information. Reference is made to original documents in all respects.
FINANCIAL ADVISOR
Hilltop Securities Inc. is employed as Financial Advisor to the City in connection with the issuance of the Obligations. The Financial
Advisor's fee for services rendered with respect to the sale of the Obligations is contingent upon the issuance and delivery of the Obligations.
Hilltop Securities Inc., in its capacity as Financial Advisor, has relied on the opinions of Bond Counsel and has not verified and does not
assume any responsibility for the information, covenants and representations contained in any of the legal documents with respect to the
federal income tax status of the Obligations, or the possible impact of any present, pending or future actions taken by any legislative or
judicial bodies.
The Financial Advisor has reviewed the information in this Official Statement in accordance with, and as part of, its responsibilities to the
City and, as applicable, to investors under the federal securities laws as applied to the facts and circumstances of this transaction, but the
Financial Advisor does not guarantee the accuracy or completeness of such information.
FORWARD-LOOKING STATEMENTS
The statements contained in this Official Statement, and in any other information provided by the City, that are not purely historical, are
forward-looking statements, including statements regarding the City's expectations, hopes, intentions, or strategies regarding the future.
Readers should not place undue reliance on forward-looking statements. All forward-looking statements included in this Official Statement
are based on information available to the City on the date hereof, and the City assumes no obligation to update any such forward-looking
statements. The City's actual results could differ materially from those discussed in such forward-looking statements.
The forward-looking statements included herein are necessarily based on various assumptions and estimates and are inherently subject to
various risks and uncertainties, including risks and uncertainties relating to the possible invalidity of the underlying assumptions and estimates
and possible changes or developments in social, economic, business, industry, market, legal, and regulatory circumstances and conditions
and actions taken or omitted to be taken by third parties, including customers, suppliers, business partners and competitors, and legislative,
judicial, and other governmental authorities and officials. Assumptions related to the foregoing involve judgments with respect to, among
other things, future economic, competitive, and market conditions and future business decisions, all of which are difficult or impossible to
predict accurately and many of which are beyond the control of the City. Any of such assumptions could be inaccurate and, therefore, there
can be no assurance that the forward-looking statements included in this Official Statement will prove to be accurate.
INITIAL PURCHASER
After requesting competitive bids for the Bonds, the City accepted the bid of ____________________ (the “Initial Purchaser of the Bonds”)
to purchase the Bonds at the interest rates shown on page 2 of this Official Statement at a price of __________________. The Initial Purchaser
of the Bonds can give no assurance that any trading market will be developed for the Bonds after their sale by the City to the Initial Purchaser
of the Bonds. The initial yields shown on page 2 of this Official Statement will be established by and are the sole responsibility of the Initial
Purchaser of the Bonds and may subsequently be changed at the sole discretion of the Initial Purchaser of the Bonds. The City has no control
over the determination of the initial yields and has no control over the prices at which the Bonds are sold in the secondary market.
48
After requesting competitive bids for the Certificates, the City accepted the bid of ____________________ (the “Initial Purchaser of the
Certificates” and, together with the Initial Purchaser of the Bonds, the “Initial Purchaser”) to purchase the Certificates at the interest rates
shown on page 4 of this Official Statement at a price of __________________. The Initial Purchaser of the Certificates can give no assurance
that any trading market will be developed for the Certificates after their sale by the City to the Initial Purchaser of the Certificates. The initial
yields shown on page 4 of this Official Statement will be established by and are the sole responsibility of the Initial Purchaser of the
Certificates and may subsequently be changed at the sole discretion of the Initial Purchaser of the Certificates. The City has no control over
the determination of the initial yields and has no control over the prices at which the Certificates are sold in the secondary market.
CERTIFICATION OF THE OFFICIAL STATEMENT AND NO-LITIGATION CERTIFICATE
At the time of payment for and delivery of the Obligations, the Initial Purchaser will be furnished a certificate, executed by a proper City
official, acting in such person’s official capacity, to the effect that to the best of such person’s knowledge and belief: (a) the descriptions and
statements of or pertaining to the City contained in its Official Statement and any addenda, supplement or amendment thereto, for its
Obligations on the date of such Official Statement, on the date of purchase of said Obligations, and on the date of delivery, were and are true
and correct in all material respects; (b) insofar as the City and its affairs, including its financial affairs, are concerned, such Official Statement
did not and does not contain an untrue statement of a material fact or omit to state a material fact required to be stated therein or necessary to
make the statements therein, in the light of the circumstances under which they were made, not misleading; (c) insofar as the descriptions
and statements, including financial data, of, or pertaining to, entities other than the City and their activities contained in such Official
Statement are concerned, such statements and data have been obtained from sources which the City believes to be reliable and that the City
has no reason to believe that they are untrue in any material respect; (d) there has been no material adverse change in the financial condition
of the City since September 30, 2022, the date of the last audited financial statements of the City and (e) no litigation of any nature has been
filed or is pending, as of the date of delivery of the Obligations, of which the City has notice to restrain or enjoin the issuance, execution or
delivery of the Obligations, in any manner questioning the authority or proceedings for the issuance, execution, or delivery of the Obligations;
or which would affect the provisions made for their payment or security, or in any manner question the validity of the Obligations.
MISCELLANEOUS
The financial data and other information contained herein have been obtained from the City's records, audited financial statements and other
sources which are believed to be reliable. There is no guarantee that any of the assumptions or estimates contained herein will be realized. All
of the summaries of the statutes, documents and resolutions contained in this Official Statement are made subject to all of the provisions of such
statutes, documents and resolutions. These summaries do not purport to be complete statements of such provisions and reference is made to such
documents for further information. Reference is made to original documents in all respects.
The Ordinances will also approve the form and content of this Official Statement, and any addenda, supplement or amendment hereto, and
authorize its further use in the reoffering of the Obligations by the Initial Purchaser.
Mayor
City of College Station, Texas
ATTEST:
City Secretary
City of College Station, Texas
APPENDIX A
GENERAL INFORMATION REGARDING THE CITY
A - 1
THE CITY
The City, located in Brazos County, is situated in the middle of a triangle bounded by Dallas/Fort Worth, Houston, and San
Antonio/Austin. Approximately 80% of the Texas population is located within a 200 mile radius of the City. In addition to being a
residential community for faculty, students and other personnel of Texas A&M University, the City also serves as a regional
manufacturing, retail and health care hub.
The City was incorporated in 1938 and has a Council-City Manager form of government with City employees totaling 1,044.75
currently.
The City adopted and enforces comprehensive zoning and building restrictions aimed at assuring orderly growth and development.
The City’s ordinances require all subdividers, at their own expense and without provision for refund, to install streets and water and
wastewater lines in any planned subdivision. These facilities are constructed under the City’s specifications and inspection and when
completed are deeded to the City free and clear. All areas within the City are now adequately served with water, wastewater and
electric service.
Proximity to three of the nation’s largest cities, college-town cultural amenities, relatively low cost of living, varied housing options,
warm climate and low crime rate have resulted in significant population growth over the last decade.
CITY OWNED FACILITIES
The City maintains approximately 598 linear miles of streets within city limits, 99% of which are hard surface. The City has a
complete water distribution, wastewater collection and treatment system with 872 miles of wastewater and water lines. The City
owns the electrical distribution system with approximately 539 miles of distribution lines and 20 miles of 138kv transmission lines.
The City has a fully equipped police department with 226 budgeted personnel positions. The department has 71 police patrol vehicles.
The fire department consists of 174 budgeted personnel positions. There are six stations and a total of 8 engines, 7 ambulances, 2
command vehicles, 1 rescue truck, 2 ladder trucks, 1 tanker truck, and 1 grass fire truck.
EDUCATIONAL FACILITIES
The College Station Independent School District (the “School District”) is a fully accredited system offering 19 educational campuses
for pre-kindergarten through high school. The School District has a student enrollment in excess of 13,500 and employs close to
2,000 people. On November 3, 2021 the voters passed a 3 of 4 bond proposition for the School District that includes campus
renovations and equipment/infrastructure updating.
College Station is home to Texas A&M University which provides higher education, offering both four year college programs and
graduate degree programs to approximately 74,000 enrolled students.
HEALTH CARE
CHI St. Joseph Health College Station Hospital, is a 200,000 square foot community healthcare provider located on 25 acres within
the city limits of College Station. The hospital is a 167-bed facility and is a licensed Level III Trauma unit. CHI St. Joseph Health
College Station is the only hospital in the Brazos Valley Region to receive national certification in joint replacement from the Joint
Commission. They are also an accredited Chest Pain Center, a certified Primary Stroke Center and the region’s first accredited Sleep
Center. The over 650 healthcare professionals work every day at a place of healing, caring and connection for patients and families
in the community
Baylor Scott & White Medical Center – College Station is a 403,000 square foot, five story, 143-bed hospital located on a 98 acre
campus near the intersection of Texas Highway 6 and Rock Prairie Road within the City of College Station. Baylor Scott & White
Medical Center – College Station is a nationally accredited Chest pain Center as well as a Level III Trauma Center. Scott & White
Clinic – Rock Prairie, a four-story medical office building, is also located on the campus adjacent to the hospital. Baylor Scott and
White Medical Center - College Station houses an emergency department, cardiac services including cath labs, neonatal intensive
care unit, comprehensive cancer services, operating rooms, maternity services suites, endoscopic procedure suites, intra operative
robotics and other specialty services, all supported by a pharmacy, comprehensive state-of-the-art imaging technology and other
diagnostic capabilities.
Other area health care providers include: St. Joseph Regional Health Care Center, Baylor Scott and White Clinic, and The Physicians
Centre.
A - 2
MEDICAL DISTRICT
The College Station Medical District Master Plan establishes guiding principles for the development of approximately 1,700 acres in
south College Station to accommodate medical facilities, walkable village centers, commercial space, and a variety of residential unit
types, all in close proximity to parks, open space, and trails. To ensure the long-term success of the District, the City has created a Tax
Increment Reinvestment Zones to help fund the necessary infrastructure. The City activated a Municipal Management District along the
relatively undeveloped east side of State Highway 6 to be used as a tool for development of these areas as well.
TRANSPORTATION
U.S. Highway 190/State Highway 21 links the City to Interstate 45 which is located approximately 35 miles to the east. State Highway
21 via U.S. Highway 290 also links the City to Austin, located approximately 110 miles to the west. State Highway 6 links the City to
Waco (100 miles) and Interstate 35 to the north and Houston (90 miles) to the south. Also, State Highway 30 links the City to Huntsville
(45 miles) and Interstate 45 to the east.
Airlines Commercial, corporate and private airport facilities are provided by Easterwood Airport, which is located
on the City’s west side and is owned and operated by Texas A&M University. American Eagle Airlines
provides daily flights to and from Dallas-Fort Worth Airport out of Easterwood. This airport recently
completed a $15 million renovation to the terminal.
Coulter Field is located north of the City of Bryan and provides a 4,000 foot lighted runway. Coulter Field
offers all types of services for the private aircraft.
Bus Lines Two bus lines serve the City with daily service connecting the City with Houston and Dallas.
Railroads Rail freight service is provided by the Union Pacific Railroad. Union Pacific Railroad operates a main freight
line from Houston through Bryan-College Station to Dallas-Fort Worth and beyond.
RECREATION
The College Station parks system encompasses 1,895 acres of parks and facilities spread throughout the city. This includes 4 dog parks,
1 skate park, 86 playgrounds, 4 recreation centers, 12 ponds, 2 pools, 2 splash pads, 60 miles of walking trails, 2 municipal cemeteries
and the Ringer Library.
POPULATION
1970 1980 1990 2000 2010 2020
City of College Station 17,676 37,272 52,456 67,890 93,857 120,511
Brazos County 57,978 93,588 121,862 152,415 194,851 233,849
Official U.S. Census(1)
(1) U.S. Census Bureau, American Community Survey
ECONOMIC BACKGROUND
Texas A&M University and System
Texas A&M opened its doors in 1876 as the state’s first public institution of higher learning. Located in College Station, Texas (about
90 miles northwest of Houston and within a two to three-hour drive from Austin and Dallas), Texas A&M’s main campus is home to
approximately 74,000 students, with more than 528,000 former students worldwide. As one of only 62 members of the prestigious
Association of American Universities (AAU), an association of leading public and private research universities in the United States and
Canada, Texas A&M boasts some of the top programs in academic research and scholarship. Texas A&M and the Texas A&M
University System employ more than 27,000 full and part-time personnel.
Texas A&M is one of only 17 institutions in the nation to hold the triple designation as a land-grant, sea-grant, and space-grant university.
In May 2016, the Chancellor of The Texas A&M University System unveiled plans to invest $150 million to create a new research and
development campus to help companies move ideas from the laboratory to the marketplace while also offering a new path toward a
college degree. The Texas A&M University System RELLIS Campus is more than a research and educational facility. It is an ecosystem
of transformative innovation like few others in the world. Through partnerships with Texas A&M University System, Blinn College,
workforce training organizations and the private sector, RELLIS is the first integrated education, research and testing institution in the
state of Texas. The educational programs at RELLIS focus on collaboration beyond institutional affiliation, and the campus will serve
as a model for the future of higher education by cultivating powerful opportunities for students. This multi-industry and education model
provides unique opportunities for both global enterprises and companies located in the Bryan-College Station area. By assembling a
diverse spectrum of engineering and technology tenants into one location, the campus fosters collaboration between enterprises that
A - 3
seek to shape the future through transformation, innovation, and education. Current initiatives underway at RELLIS are the Army Future
Command’s Bush Combat Development Complex, work with 5G technology, autonomous vehicle driving, and transportation material
testing and labs are just a few to mention.
George Bush Presidential Library and Museum
The City is the site of the George Bush Presidential Library and Museum, located on the campus of Texas A&M University. Texas
A&M provides programs and facilities such as research and instructional programs related to the library and museum, a conference
center, communications center, educational museum/library center, and family-oriented facilities such as a park surrounding the
presidential library and museum. In 2021 fundraising started for the expansion of the library. The new expansion will house the 4141
locomotive engine that carried President Bush to his final resting place and the Marine One helicopter President Bush used. The new
addition will be open to the public in June of 2024. The Presidential Library and Museum is also part of the George Bush Presidential
Library Center which is home to the prestigious Bush School of Government and Public Service.
Century Square
The City continues to experience growth. The growth has resulted in continued retail development, especially in the Tower Point and
Caprock developments in the southern part of the City with new restaurants and other businesses opening and others under construction
to serve the ever growing residential populations in that area of the City. However, that growth has expanded to the north side of College
Station where mixed-used facilities and additional hotels near the Texas A&M campus are under construction.
One such development is Century Square. This 60-acre development creates a dynamic community center where people congregate
from across the region to experience a walkable, urban destination. The project features premier retail and restaurant establishments,
entertainment venues, 60,000 SF of Class-A office, two full-service hotels: The George and Cavalry Court, luxury apartment homes:
100 Park, and an activated central gathering space.
Athletics
Athletics is an integral part of College Station. Texas A&M University, along with the City, hosts a multitude of athletic events. Texas
A&M University is the home of Kyle Field, Reed Arena, Olsen Field at Bluebell Park, Aggie Softball Complex, George P. Mitchell
Tennis Center and Gilliam Indoor Track Stadium. Several of Texas A&M teams have won both conference and national titles over the
past five years with every university varsity level team competing in post-season play for the 2015-2016 season. This has positioned
the University to host regional payoffs as well as national championship games. Texas A&M’s move to the Southeastern Conference
(SEC) in 2012 has proved positive for the City. For the Texas A&M’s football team ranked eighth in the nation in average attendance
for the 2022 season with average attendance of 97,213 for home games, according to figures released by the NCAA.
The City’s premiere sport complexes, as well as the ease to get around, makes College Station attractive to a number of high profile
organizations. Over the past several years, Texas Amateur Athletic Federation has chosen College Station to host state tournaments and
events. In addition, the City facilitates four major softball tournaments, multiple soccer tournaments, two 7 on 7 football tournaments
and baseball tournaments throughout the year.
MAJOR AREA EMPLOYERS
Number of
Firm Name Product Employees
Texas A&M University and System Education/Research 27,000+
Bryan ISD Education 2000+
College Station ISD Education 2000+
Texas A&M Health Science Center Education 2000+
Reynolds & Reynolds Computer Hardware and Software 1800+
Blinn College - Bryan Campus Education 1000+
Sanderson Farms, Inc. Poultry Processing 1000+
CHI St. Joseph's Regional Hospital Health Service 1000+
Wal-Mart/Sam's Retail 1000+
HEB Grocery Retail 1000+
City of College Station Government 1000+
Brazos County Government 500-999
City of Bryan Government 500-999
Ply Gem Windows Manufacturing 500-999
Baylor Scott & White Health Service 500-999
Fujifilm Diosynth Biotechnologies Biotechnology 500-999
Source: Brazos Valley Economic Development Corp.
A - 4
The City of College Station has a diverse, growing employment base comprised of a broad range of industry sectors including education,
hospitality, professional services, healthcare, and biotechnology. For 2022, the U-Haul Growth Index ranked College Station the #1
growth market in Texas and the Milken Institute ranked College Station the 4th best performing small city in Texas.
College Station is home to Texas A&M University, one of the country's largest public universities and is also the headquarters for the
Texas A&M University System, a statewide network comprised of 11 universities and eight state agencies. Texas A&M University
boasts more than $1 billion in annual R&D expenditures and offers opportunities for local businesses to utilize the University’s talent
pipeline, subject matter experts, research centers, institutes and agencies.
In addition to the impact of the Texas A&M University System, the city also is home to emerging life science and information technology
sectors with major employers including FUJIFILM Diosynth Biotechnologies, Matica Biotechnology, Lynntech, Reynolds and
Reynolds, and StataCorp. Additionally, the area serves as a medical hub for the region anchored by Baylor Scott & White Medical
Center and St. Joseph Health College Station Hospital.
The City has multiple dedicated business parks to support the ongoing recruitment of primary industry employers including Midtown
Business Park (252 acres), Business Center at College Station (200 acres), Texas A&M Research Park (350 acres), and BioCorridor
(160 acres).
LABOR STATISTICS
College Station
Labor Total
Force Employment Unemployment Rate
2019 61,075 59,375 1,700 2.8%
2020 60,226 57,240 2,986 5.0%
2021 63,908 61,446 2,462 3.9%
2022 66,405 64,339 2,066 3.1%
2023 (1)68,430 65,879 2,551 3.7%
Year
Brazos County
Labor Total
Force Employment Unemployment Rate
2019 117,735 114,547 3,188 2.7%
2020 117,019 110,773 6,246 5.3%
2021 123,982 118,912 5,070 4.1%
2022 128,477 124,512 3,965 3.1%
2023 (1)132,218 127,492 4,726 3.6%
Year
Source: Texas Workforce Commission.
(1) Average as of February 2023.
BUILDING PERMITS
College Station has grown rapidly over the past 30 years as evidenced by an increase in population from 37,272 in 1980 to 93,857 in
2010. As of 2023, the estimated population of College Station was 126,056. The following table sets forth the number and value of
construction permits issued by the City over the past several years.
Residential Construction Commercial Construction Other Construction* Total
Calendar Number Number Number Number
Year of Permits Value of Permits Value of Permits Value of Permits Value
2018 1,953 177,627,344 $ 461 103,143,722 $ -$ -$ 2,414 280,771,066 $
2019 553 100,803,824 102 80,992,499 1,911 98,242,242 2,566 280,038,565
2020 610 110,135,433 82 81,220,448 656 35,731,929 1,348 227,087,810
2021 778 218,422,222 89 186,326,238 2,224 66,261,099 3,091 471,009,559
2022 604 161,031,495 69 162,805,810 1,268 178,011,234 1,941 501,848,539
Source: The City.
* Starting in 2019 all new pools, remodels/renovations, new roofs, demolitions, slab only and other improvements are reported under
“Other Construction”. These permits were previously reported under Residential and Commercial.
A - 5
COUNTY CHARACTERISTICS
Brazos County was created in 1841 from Robertson and Washington Counties. The economy is diversified primarily by agribusiness,
computer manufacturing, research and development, and education. The Texas Almanac designates cattle, hogs, sorghums, corn, cotton,
wheat, oats and pecans as the principal sources of agricultural income.
The County had a 2020 census population of 233,849, an increase of 20% since 2010. Minerals produced in the County include sand
and gravel, lignite, gas and oil.
[Remainder of Page Intentionally Left Blank]
APPENDIX B
EXCERPTS FROM THE
CITY OF COLLEGE STATION, TEXAS
ANNUAL FINANCIAL REPORT
For the Year Ended September 30, 2022
The information contained in this Appendix consists of excerpts from the City of College
Station, Texas Annual Financial Report for the Year Ended September 30, 2022, and is not
intended to be a complete statement of the City's financial condition. Reference is made to
the complete Report for further information.
APPENDIX C
FORM OF OPINION OF BOND COUNSEL