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HomeMy WebLinkAboutRES 900617 - Utility System Revenue BondsRES�?UTION ��) WHEREAS, the Ci to Councllof the Cit, of Georgetown, TexasJcsres to receive lids gni 3 for the purchase ofits t^,^7S;OC;I1tIht,5lstam'.^re��c_ ,,ierarl WHEREAS, First Southwest Coopans, Dallas, l has too as, authorized and requested to prepare a Notice of Sale add Bidd ng Iparu fiona. Off Tial Bid Formant Official Statesront containing financial, economic and other data rlacessary and desirable to attract bids for said certificates; NOW, THEREFORE, BE IT RESOLVED BY THE C11 COUNCIL OF THE CIT'1` OF GEORGETO'&'N, TEXAS: That the sanacheJ �totice oGSala sdu Bidding litstrsctoas,Official Rid Frrmand Oftival,`taiemeiV �latrde to S1130000) City of'Geofge;omn, To asUtrlitySystem Revenue Bornk, Series 1991, are hereby approved, both as to loon and toutert, and said First Soutvm! Companv isauthouaed to Niatribu p said Donee of Sala and Mdma Ilatrrc,i3ns; Official Bid .Form and Official Stalctoedt la P os,,ar ue Mirka toi, sold ourchasers of ha �e tlEiaates f'ASdEvD AND ApF„C', EDdhis dio r 1 J, daymf Documcer,1991, by Iho U} .cun al oftheCityofGeorgetown,Ter a5,con reneu,n essOnWitha4atllquorCm Present. ATILT,: j , City Seeretary RESOLUTION! WHEREAS, the City Council of the City of Georgetown, Texas desires to receive bids for the purchase of its $23300;000 Utility System Revenue Bonds, Series 1991; and WHEREAS, First Southwest Company; Dallas, Texas, has been authorized and requested to prepare a Notice of Sale and Bidding Instructions, Official Bid Form and Official Statement containing financial, economic and other data necessary and desirable to attract bids for said certificates) NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF GEORGETOWN, TEXASr That the attached Notice of Sale and Bidding Instructions, Official Bid Form and Official Statement relative to $21300,000 City of Georgetown, Texas Utility System Revenue Bonds; Series 1991, are hereby approved, both as to form and content, and said First Southwest Company is authorized to distribute said Notice of Sale and Bidding Instructions, Official Bid Form and Official Statement to prospective bidders for, and purchasers of, the certificates, PASSED AND APPROVED this the l Ith day of December, 1991, by the City Council of the Cit} of Georgetown, Texas, convened in session with lawful quorum Present, ATTEST; ,n City Secret r Mayor NOTICE OF SALE AND BIDDING INSTRUCTIONS On $2,300;000 CITY Of GEORGETOWN, TEXAS ONAdamsonCoimi UTILITY SYSTEM REVENUE BONDS, SERIES 1991 Selling January 5, 1991, at 730 PM, CST THE CITY VILL DESIGNATE THE BONDS AS "QUALIFIED TAX�EXEBIPT OBLIGATIONS" FOR FINANCIAL INSTITUTIONS. THE SALE Bork Offered for .Safe at Competitive Bidding The City of: Georgetown, Texas (the "Ciiy) is of'ering for sale its $2,300,080 Utility System Revenue Bonds, Series 1991.(the "Bonds"L. Address of Bids Sealed bids; plainly marked"Bid for Bonds' should headdresseB and delivered to "Mayor and CityCoimdl, City of Georgetown, Texas", and delivered m the: Mayor and City Council at City Hall, 60 Main, Georgetown, Texas prior to 7:3d PM, CST, or the date of the did opening All bids must be Submitted on doOificel Bid Form, without alteration or Place ad time of Bid Opening The bids for the Bands will be publicly opened and read in the City Council Chambers of the City Had at 7130Be, CST, Tuesday,0anuary, S,,1991. Award of the Binds The City Council will take action to award the Bands (or reset all bids) at a meting sche231ed to rani at 7:00 PM; CST, on the date r[ the bit opening aid adopt an ordinance authorizing the Bonds and approving the.Ofticfal Statement the 1IrdlnancE). THE BONDS Description the Bonds will be dared January 1, i991(the "Bond Octal, and interest will be due on February 15, 1992, and debt February 13 and August 15 res earlier of maturity or prionedemplioo; The Bonds will reissued ondy in fully registered form in any imeg at mftple of $3,000 for any we maturity. The Bonds will mature on August 13 in each year as follows: Principal Principal Pruupal Year Amount. Year Amount Year Amount 1993 T 601000 1498 T 130,000 2007 -1751000 1990 80,000 1999 150,000 2003 :2001000 1995 1001000 No 157,000 2004. 275;000 1996 110,000 hBI 150;000 2005 700;000 1997 1201000 2006 3001000 Redemption The City reserves the rigni at its option, to redeem Bonds having stated maturities an and after August 15, 200g, in whole on in part in primpst amounts of:$5,000 or any Integral mu fife a thereof, on. August 15, 2001, or am date thereafter; st the par value thereof plus accrued interest he the date fixed forredemption, Paying Agat,IRegistiar. The initial Paying AgentyftegistrarAnd be the Amentrust Texas, NA., Austin Texas '(sea'Paying Ageia7Registiar in1RHcial Statement). Sources of Payment The Bonds are payable; bath as to principal and Interest, Solely from and secured by a first lien on and pledge o(the Net Revenues otrheSystem after payment f malovenanceand operating expenses; further all regarding the Bonds are Pat forth in the Official Statement, CONDITIONS OF THE SALE: Type of Bids and Interest Rates BausiorAward For the purpose of awarding me sale of the Bonds, the interest cost of each bid will be computed by deternming, a* the rate or rates specified therein the total dollar cost of all interest 0the Bonds from the Bond Dateto their respective maturities using the. table of Bond Years herein, and deducting therefrom Npremium bid many (the:".Net Interest Coat CaIc0letion ). Subject to the City's tight to reject angor all bids and to waive any irregularities except time of 6hng the Bonds will be awarded to the bidder or syndicate acc4ant manager whose name first appears on the Official Bid Form be 'Purchaser"( whose bid, based onthe Net Interest Cost Calculation, produces the lowest net effective interest cost to the City; Good Faith Deposit DELIVERY OF THE BONDS AND ACCOMPANYING DOCUMENTS CUSP Numbers It is anticipated that CUSIP identificatioonumbers will appear on the Bonds, but neither the failure to print or type such number ort: any Bond nor any error with respect thereto shall constitute cause for a failure or refusal by the Purchaser to accept delivery of and pay for the Bords'in accordance with the terms of this Notice of Safe no Bidding Instructions and the terms of the OlficialBid Form. All expenses in relation to the printing or typing of CUSP: numbers an the Bonds small be paid bythe City; provided, however, that the GUST : Service Bureau charge for the assignment of the numbers shall be the responsibility of and shall bepaid far by the Purchaser, Nibs] Delivery of Ina lBOM Vaal Delivery will be accomplished by the issuance of aneor more Initial Bonds (also called "Bonds"), either in typed or printed form, in the aggregate principal amount of $2;ID0,000, payable: in stated installments to the Purchaser, signed by the Mayor and City Secretary, approved by the" Attorney General, and registmed and manually signed by the Comptroller of Public Accounts..Nitlal Delivery will be at the principal office of the Paying Agent/Registrar. Payment for the Bonds must be made in immediately available force lot unconditional credit to the City, a aothemise directed by the City. The Purchaser will be given six business days' notice of the time fixed lot delivery of the Bonds. It is anticipated chat Initial Delivery of the Initial Bonds) can be made m N about February 17,1991; end itis understood and agreed that the Purchaser will accept delivery and make payment for the Bolls. by 10,00 AM, CST, on February 12,1991 or thereafter on the date the Band is tendered for delivery, up to all including. February 26, 1991, If for any reason the City is unable to make delivery an a before February 26, 1991) the City shall immediately wntaor the Postmaster all offer to allow the Purchaser to extend its offer for anadoltlonil Unny days If the Psalmists does hot elect to attend its offer within six days thereafter, then its Good Palth Deposit will be returned, and both the City and beePmchaser shall be rellevedof my further obligation: In no event shell the City be liable for my damages by reason of its failure to deliver j the Bohol provided such fmlume is has to circumstances beyond the City's reasonable control. Delivery of.Deflri Bonds Lpon payment for the Bonds at the time of the Initial Delivery, the Paying Agent/Registrar shall anal the Initial Bond, provided registration instructions have been received by the Paying Aent/Registrar, and shall register and deliver the registered definitive Bonds, in any undegral multiple ol�5,000 for anyone maturity, in accordance with instructions received from the Purchaser midi members of the Purchaser's simulate account. It bill bethe duty of the Purchaser tofuman to the Paying Agent/Registrar, at least he business days prior to the Initial Del veil written instructions designating the names In which the Bands art to be registered, the addresses of the registered owners, the maturities, interest rates and denominations: The Paying Agent/Registrar will not be required to aaept registration insrucnonsafter the fifth business day prior to Initial Del vttv If such written instructions are not received within Ilio specified time period the carcebnon of the Initial Bond(sl and delivery of registered definitive Bonds maybe delayed drift such instructions are received. Corinthians to Mindy The obligation of the Purchaser: to take up and pay for the tends is subjectto the Purchaser's reaipt of (a) the legal opinion of M[Call, Parkhurst a Norton, Dallas, Texari Bond Counsel for the City("Bond Counsel% lo) she no-Liq ion certificate and (c) the cerhEcanon as to the Official Statement, all as father described in the Offidal Statement.. In order to provide the City with information required to stable it to comply with certain conditions of the Internal: Revenue Code of 198E relating to the: exemption of acetest on the Bonds from the gross income of (heir owners the Purchaser will be reputed to complete execute and ddrverto Ce City (on or before the date of dehvery of the Bonds) a certification alto their %ssueprice" substantie:ly in the farm and to the effect attached hereto or accompanying this Nonce of Sale anoEidi f Instructions, yG the event he sioesdid bdder will not reoffer the Bonds for sale, such certificate may 'be modified in manner approved by the City In ins event off the City fail to deliver the Buds asacards of the Imid Purchaser's iobiWy to x0 a substandsl amamt of be Bdeds at aparticull prla print to ill Each hidden by submitting its bid agrees to compete, execute, and deliver such a certificate by the dale of delivery of the Bonds, if its bid is accepted by the City, It will the responsibility of the Purchaser to institute suchsyndicate repomingrequirements to make such invest gation or otherwise to ascertain the facts necessary to enable it to Take such certification with reasonable ceersudii. Any questions Legal Potions The Bonds are offered when asand if isaced supect to the approval of the Attorney General the State of Texas. Delivery of and payment for the Bonds is smoctto be reaipt by the Purchaser of Opinions of Bond Counsel; to the effect that the Bonds are valid and ancing special obligations of the City and Cat the interest on the Bonds will be excludable from gross income for fedeal income tax purposes under existing law, nublen to the matters described under'Ta, Exemption herein including the alternative minimum tax on corporations: Cer66afionof offidal Statement At the time pi payment for and Inhlal Delivery oli me Bonds,. the City will execute thin deliver to the purchaser a calif in the form set forth in the Official Statement; Change a Tax Exempt Status. At any time before the Bonds are tendered for delivery, the Purchase may withdraw its bid if the interest received by private holders on bonds of the same type and character shall be declared to be taxable income under present federal income tax laws either byruling of the Internal Revenue Service or by decision of any Federal court, or shall be declared taxable or be required to betaken "are account in computing any federal !Rome teamby the terms of any froderpl income tax law enacted subsequent to the date of this Notice of Sale and Bidding Instructions. GENERAL Financial Advitir First Southwest Company is employed as Financial Advisor to the City In connection with the issuance df be Ponds: The Financial Advisory tee for services rendered with respect to the sale of the Bonds is contingent upon the issuance and delivery of the Bonds. First Southwest Company may submit a bid for the Bands, either Independently or as amember of asyndiate organized to submit abld for Bonds. First Southwest Company, In its cuadty as financialAdvuay has not notified and does net assume my responsibility far the information; tantrums and represemarons'contained in any of the and dacntnem ration with respect to the ferberal income tax slam of be Bonds. Blie Skylaws By submission of its bid, the Purchasercegesoms that the sale of the Bondsid states other than Texas will be made Wy paramount to exemptions from. registration a, where necessary, the Purchaurwill register the Bads in accordance wlththe securities law at the states in which the Bonds us offered or sold, The City agrees to corporate with the Purchaser, at the goddesses written request and expense; in registering: hire Bonds a obtaining art exemption from .registration many state where such action is ? Maori provided, haweva, that the City shall not be obligated to execute a general a special consent to service of process in any such jurisdiction. •iii Not an Offer to Sell This Notice of Sate and Bidding Instructions does not alone constitute an offer to.eli the Bonds, but is merely noticeof the sale of the Bonds,. The offer to sell the Bonds is being made by means of the Notice of SaleandBidding. Instructions, the :Official Bid Form and the Official Statement. Prospective purchasers are urged to carefully eiamioethe official Statement to determine the investment quality of NBonda, Issusuni Ad9tioned Bonds After the issuance of theseracist the City has no plans to issue additional Uulny System Revenue Bonds doing the next 3months. Ratngs The presently outstanding revenue debt of the City is rated."All by Noody's .Investors Service, Inc, I Moody'saj and' A by Ssndard dPoor's Corporation ('501), Applications for contract ravings on Has issue have been made to both Moody's aid S&P The results of their determinations will be provided as soon as possible: Municipal BailInsurmme In the event the Bonds are qualified toe municipal bond insurance, and the Purfnasu desires to purchase such Ipsurarar, the cost thereof will be paid by the Perique.. Any fees m be paid 'no rating agencies as a result of said insurance will be Paid by the City It will be the responsibility of the Purchaser to disclose the existence of Insurance, its tamable! the effect thereof with respect to the reoffering of the Bonds. The Official Statement and Compliance vitli SEC Rule M,11 The City 'has prepared the accompanying Official Statement and for the limited purple of complying with SEC Rule dct-12deems such Offic a Statement to be final as of its date witfohtM1e meaning of such Rule for the purpose of refiew prior to bidding, ,Representations made and to be made by the City concerning the absence of material misstatements and omissions in the Official Statement are addressed elsewhere in this Notice of Sale and Bidding Instructions and In the Official Statement, The City will furnish to she Purchaser, or Purchasers, acting through a designated Rotor representative, In accordance with instructions received from the Purchasern), within seven iFl business days from the saledate an aggregate of 100 copies of the Official Statenrem including a Jike number of copies of a Supplement reflecting interest rates and other terms relating to Aernmal reoffering of theBonds, The cost of preparation of the Supplement, or of a reported Official Statement, if !he Purchaser(s).shei so e ecu and the cost of any Official Statement in excess of the number speditedshail be prepared and distributed at the cost of the:Purcheserlsl. The Purchasers) shall be respons ble for providing in willing the initial reoffering pricesandother terms if any,to the Financial Aaiser by close of the next busciess day after the awed Except as noted above, the City assumes no renponsibibtyor obligation for the distribution or delivery of any copies of the Official Statement in ronnectionwim the offering or allermEofthe 5#ct secuniges. Add`itionalCopies ofNames, Bid farm and Statement A limited mu¢ber of adtlhooBl copies of this Notice of Sale and Bidding Instrucuoos the Official Bid Forman theOtficiel Stannient, as available over and above the normal ceailwgsmay be obtained at the. offices of First WhwendCadpaoy, Investment Bankers, 500 First CityCthr:,1700 Pacific Avenue, Dallas, Texas 75201, Financial Advisor o the Qty. The City Council has approved the term and content of the Notice of Sale and Bidding Instructions, the Official 0id Form and Official Statehient; and authorized the use thereof in its initial offering of the Bonds, On the date of the seethe City Council will, In the Ordinance authorizing the issuance of the Bonds, confirm its approval of the farm and content of the Official Statemeni� and any addenda; supplement or amendment thereto, and authorize its use in' the reoffering of the Bonds by the Purchaser. W'..H,CONNOR Mayor City of Georgetown Texas CViMA ELIZABETH GRAY City Secretary December 11, 1990 BOND YEARS Average. Maturity --•------------------------"""10;879 Years Accumulated Year Amount Bond Years Bond Years. Year: 1993 $ 60,000 157.733. 157.333 1993 1994 :80,000 289;778 447:111 1994 1995 :100;000 462,22. 909333 1995 1996 1101000 618,444 11527;777: 1996 1997 120,000 794;667 2322;444 1997 1998 130,000 990,889. .31313.333 1998 1999 150,000 11293,333 41606,666 :1999 2000 150,000. 11443:333 61049;999 12000 2001 1500000 1;593:33) 71643,332. 2001 2002 175;000. 21033:889 91677;221. 2002 2003 .200;000 21524:444 12,201.665 ,2003 2004 275;000 31746.111 15,947.776 :2004. 2005 300;000 :41388:667 20,334,443 2005 BOOB 300,000 41686;667: 25;021.110: 2006 Average. Maturity --•------------------------"""10;879 Years CERTIFICATE OF UNDERWRITER The. undersigned hereby certifies as follows with respect to the sale of S2,300,000 CITY OF GEORGETOWN, TEXAS UTILITY SYSTEM REVENUE BONDS, SERIES 1991 (the "Bands"); I,. The undersigned is the manager of the underwriters and Riling group (the "Underwriter") which has purchased the Bonds from the City of Georgetown, Texas (the "Issuer%. 2. The undersigned has made a bona fide offering of the Bonds to the public. 3. The first price during the initial offering (expressed asa'yield)ofthe Bonds atwhich at least . 10 percent of the principal amount of the bonds was sold to the public is set forth below, principal principal Amount at Years of Amount at Years of dfaturity. Maturit. Yield flaturit Maturit Yield $' 60,000 1991 _ $:1302000 2000 8o,00o 1994 _ 130,000 2001 _ 100 000 My _ 1151000 2002 , 110,000 1996 200;000 2003 _ 120,000 1997 _ 275,000 20W 130,000 1998 _ 300;000 2005 _ 1505000 1999 _ 300,000 2006 _ The Bonds sold by the undersigned have not been offered at one price to the general public and at a discount from such price toInstitutional or other investors, 4, For purposes of this certificate, the term °public" does not include (a) the undersigned, (h) members of the syndicate; if any, managed by the undersigned, or (c) any bondhouses, brokers, dealers, and similar persons or organizations acting in the capacity of underwriters or wholesalers that are related to, or controlled by, orare acting on behalf of or as agents for the undersigned or members of any syndicate in which the undersigned is pamucipatmgin the sale of the Bonds. 5. The offering pricedescribedabove reflects current market prices at the dme Of such sales, 6 If any or all of the obligations constituting the Bonds are 10 be insured then the premium paid for bond insurance is solely for the transfer of credit r.sk for the payment of debt service on the Bonds, The Underwriter has represented that the present value of the premium paid for bond insurance for each obligation constituting the Bonds to which suchpremium is properly allocated and which are insured thereby is less than thepresent value of the interest reasonably expected to he saved as result of the insurance on each obligation constituting the Bonds.. The premium has been paid to a person which is cwt exempt from federal income taxation and which isnot a user or related to the user of any proceeds of the Bonds. In Determining present value for this purpose, the yield Of the Bonds (determined with regard to the payment of the guarantee feel has been used as the discount rate. 7, The undersigned understands that the statements made herein will be relied upon by the Issuer in its effort to comply with the conditions imposed by the internal Revenue Code of 1986 and by Bond Counsel in rendering their opinion that the interest on the Bonds is excludable from the gross income of owners thereof. EXECUTED and DELNEREDthis _ day of .1991, By: Underwriter UIiY[�ISIIidUT1sEP„I Honorable Mayor and lit,. ,mcii January 8, 191 City of Georgetown,, Texas Members of the CityCouptiB Reference it made to your Offcial Statement and Notice of Sale and Bidding Instructlou; dated December 11,1990; of $2306,600 CITY OF GEORGETOWN, TEXAS UTILITY.SY57EM REVENUE BONDS, SERIES 1991, both of which constdufe a part barrel For your legallyiamed Bonds, as described inlaid Notice of Sale and Bidding Instrarhon9and Official Statement, we will pay you par ad accrues Interest from date of issue to date of delivery toys, plus a cash premium of $ for Bonds maturing and bearing interest as follows: Principal Interest &!ncipal Interest 4laturitY Amoml Rate bla;urity Amount Rate 8451993 60,0E-1 % 8.152000 '150, KE 845199V' 80,Mo a% '8454001 6Gi0oo 8-15,1995 sifg �% 8-15-20G2 17) on % P5-1996: 110 000 _% 8-15+2003 SEE ;000 _% 815.1997 1201006 % 8.154004 njNo 8-15-1998 130 005 �% 8.152005 100,00E 8-154999 ISG i G00 —% 8-154006 M0100C % Our ea@Wafion , which is ml apart of Ill bid) of the interest cost from the above In Total Interest Cost Cess Premium NETINTERE51 COST EFFECTIVE INTEREST RATE: % %e are having the Bonds of thefollowing. maturities insured by ata premium of $ , said premium to be paid by the Punchier. Any lets to be had to the rating a geodes as a result said insurance will be paid by the CEty. The Inial kidshall be regsterecuin the name of , We will advise rin Robert Patieuson, Corporate Trust Division, Aineritrust TexasiN.A., P, 0, Boa 149016, Austin, Texas 79714-906 012 480-3132), NPaying AgeadReptuarrour, registration instuctions colonist fire bdsness days prior to the date set for Initial Delivery: A Cashier's Check of the Bank, , ia9he-amount of $4610003 whimirepresents Dm Good path Depos,t Es attached hereto) or (has been madeavaiiabte to you prior to the emerging of this bid) and is submitted In accordance with the' terms as at form in me Official Statement and Notice of Sale and BTddibganstructiou. We agree to accept deluep of and make: payment for the Bonds in immediately available funds in the. Corporate Trust Eirtsioo Areerittut Texas, NA„ Austin Texas not later than 1006 Abil CST; on February t2 1991, for thereafter on the date the Bonds bre tendered for delivery, pursiuetto the terms war forth In the Inoue ofSee and Bidding instructions, The underslgoed agrees to complete, evecom,and tearer to beCity, at least six bdsimas days prloi to delivery of the Bonds, a certificate mlal to the "issue price" of the Bonds in the lorm and to me effect aeempanpng the: Notice of kle and Bidding Instructions with soon changes thence as may be acceptable to the City- WE agree to provide in wall the i l renfiering pries and a* Items, deny, to the Financial Adrisarby the clue of the Mal bmiaess day after Ede issued. Respectfully suDmi ll By Authorized Representative ACCEPTANCE CLAUSE The above ad foregoing bid is hereby in all things accepted by the City of Georgetown, Texas subject to and in accordance with the Notice of Sale and Bil Imstrucuons, this the8thday of Janary, IM, Mayor ATTEST; City of Cali Texas - r,. City Secretary NEW ISSUE OFFICIAL STATEMENT Dated December 11, 1990 In the opinion of Bond Counsel, interest on the Bonds will be excludable from gross income lot federal income tax purposes under existing ,aw, subject to the mattersoescribed under Tax Exemption' herein; including the alternative minimum tae on corporitiopz THE CITY WILL DESIGNATE THE BONDS AS "QL'ALIFIED.TAXEXEh1PT OBLIGA11pNS" FOR FINANCIAL INSTITUTIONS $2;300,000 CITY OF GEORGETOWN, TEXAS (Williamson Coinq) UTILITY SYSTEM REVENUEBONDS; SERIES 1991 Dome: January I; 1991 Due: August 15,asshown below Interest on the $2,300,000 City of Georgetown, Texas (the "City") Utility System Revenue Bonds, Series 1991 (the Bonds") will accrue tram the dated date as shown above and %tube payable February IS and August IS of each year, commencing February 15,1992, and will be calculated on the basis of 36G - day year of twelve 30-daymonrhs. The definitiveBonds will be issued only as fully registered bonds in the denomination of $5,00G or any Integral multiple thereof. The Bonds are issued pursuant to the geraral Paws of the State of Texas, particularly Articles II11, et Secy VATCS, and an ordinance (the "Ordinance") passed by The City Council, and are special obligations of the City payable, both as to principal and interest solely from and secured by a first hen on and pledge of the Net Revenues of theCity s Iaterworksaid Sewer System;The City has not covenanted nor obligated itself to pay the Bonds from monies raised or to be raised from taxation (see "Authority for Issuance'0. The tial Paying ;Agent)Reg.sirar sball be the Ameritrusi Texas, N.A., Austin, Texas (see "Paying. AgamNegistrar"), Proceeds from the sale of the Bonds will be used for the engineering and construction of a wastewater treatment part, modification of an mating treatment plant, additional wastewater lines; The purchase of. additional land and the cost of issuance of the bonds. MATURITY SCHEDULE .Price Price or or Amount hlaturit Rate Yield Amount Matudt Rate Yield 60,000 S -15d993 IS0,000 8.15.2000 80;000 8dS-1990 150,000. Sd5-2001 106;000 8-15.1993 173;000 8.13-2602 Ingo 8-15d996 200,000 8.15.2003 12G;000 8.15.1997 3]5;000 8d5 -2m 130;000 :8.13-1998 300;000 8-15.2005 150,000 8-15-1999 5001000 8d5-2006 The City reserves the: right, at its option, to redeem Bonds taxing stated maturities on and atter August 15, 2002, in whole or to part in principal amounts of $5,000 or any Integral multiple thereof, on August IS, 2001, or any date thereafter, at the par value thereof plus accrued interest to the date fixed for redemption (see'Redemption of Bonds'). The presently outstanding Waterworks and Sewer System Revenuedebt of the City is rated "A" by Moody's Investors Service; Inc.(Moodys") and "A" by Standard A Poor's Cc oration (1&?). Requests for ratings for the Bonds have been made to both rating services (see"Ranogs". The Bonds are. offered for delivery when, as and if issued and received by the pwchamr(s) and subject to the approving opinion of the Attorney General of the State of Texas and of McCall, Parkhurst A Horton; Bond Counsel, Dallas, Texas. The legal opsmonwrB be printed on the Bonds (see Appendix C, 'Form of Bond Counsel's Opinion'). It is expected that the: Bonds will be eligible for delivery through the Depository Trust Company ("DTC') It will be the obligation of the purchaser of the Bonds to complete and file' the DTC Eligibility Questionnaire. Defiverp Anticipated Door about Februaiy 12, 1991 This Official Statement does not . constitute an offer to sell Bonds in any jurisdiction to any person to whom itis unlawful to make such offer in such jurisdiction. No dealer, salesman, or any other person has been authorized to give any information or make any representation, other than those contained herein, in connection with the offering of these Bonds, and if given or made, 'Ib information or representation must not be relied open. The information and expressions of opinion herein are subject to ige without: notice and neither the delivery of this Official Statement nor any sale made hereunder shall, under any cacumstances, create any implication that there has been no change in the affairs of the Citysmce the date hereof. TABLE OF CONTENTS Official Statement Description a1 the Bonds.......................................................... City Administration Ejected Officials...._.......................................................... Appointed Officials:-....................................................:......... Consultants and Advisors ....... ................................................... Selected Data from the Official Statement .................... ......... ......... ..._. Bond Information Authority for Issuance:-- .—•-•• . ... ---. Securityfor Bonds ....... ........................................... ..........— PledgedRevenues.....::.....:.................................................... Rates.............................................................. ......... . Redemption of Bonds........................................................... Additional Bonds .................................... Paying Agwi Registrer.......................................................... Transfer, Exchange and Registration ....... • ••.-----• •_••..-- LimitationonTransferofBo^ds Called for. Redemption.. ••-•_----- RecordDate for interest Payment ------------------------------------- ..........,. Use of Bond Proceeds ..................................... ........_.............. Sources and Uses of Fmds.............. .......................................... . Monthly Electric Rates........................................................... Top Ten Electric Customers -------------------------------- .. --------- Debi Information Debt Service Requirements....................................................... Authorized But Unissued Revenue Bonds .................. ........................ Anticipated Issuance dRevenue Bonds:-------------------------------------..... Selected Provisions of the Bond Ordinance .......................................... Financial Information Waterworks and Sewer System Condensed Statement of Operations:----------,-.---- CoverageandFundhordes •......... ...... ......... City's Equity inSystem ................ ... ......................................... Finandal Administration ......................................................... Financial Policies ............................................................... Other Relevant Nforrearkso Qualification of Bonds for Sale-•---•-•--••-...... •••••......•.... a and EdgibilitytoSecure Public Funds inTexas- ----- •...... -- --- 11 12 12 1211) is is 19 x 20 21 22 22 22' 22 27 23 27 7 The cover page hereof, this page, the. appendices included herein and any addenda, supplement or amendment hereto, are part of the Official Statement, 2. CITY ADMINISTRATION Elected Officials Appointed Officials Length of Length of Name: Position CitVCouncil Service: Term Ea las Ouuoation W'. H. Connor S Years: May 1991, Attorney Mayor Marianne Landers Banks City Attorney 6.Months Elizabeth Cray Mike McMaster 3112Years : Mg01 1 Manages, DataProeessing Mayor Pro -Tem. Deloitte Haskins h Sells Department, TCS Winfred Bonner 1112 Years May 1992 Retired Educator Councilmem6er Dallas, Texas Financial Advisor .....--- —...... ...:::......... First Southwest Company Barbara Pearce 3117Years May 191 Registered Nurse Cbuneiimember Joe'Saegert 2Years May 1991 Insurance Agent Councilmem6er Bob Schrawger 6.Months. May 1992 Retired Military Comd1rrbet Fred :Tann 6,Months May 1992 Cabinet Maker Councilmem6er. Lorenzo Valdez, Jr. 1112Years May 091 Telephone Technician: Councilmem6er: Appointed Officials Dallas and Austin; Texas For additional information regarding lhe:City, please contact Glenn Reynolds :Monty Nitiholas Length of Name: Position Service Bob Hart City Manager 2Years Glenn Reynolds Director of Finance 2112Years Jim Briggs Director of Utilities 5Years Marianne Landers Banks City Attorney 6.Months Elizabeth Cray City Secretary 6dlooths Consultants and Advisors Auditors............................................................. Deloitte Haskins h Sells Austin, Texas Bond Counsel ---•----------- ................................... McCall, Parkhurst k Horton Dallas, Texas Financial Advisor .....--- —...... ...:::......... First Southwest Company Dallas and Austin; Texas For additional information regarding lhe:City, please contact Glenn Reynolds :Monty Nitiholas Director of Finance or First: Southwest Company City of Georgetown 370 San Tactile P, O'. Box 409 98 San Jacinto Boulevard. Georgetown, Texas 78627 Austin, Texas 78101-4039 (512)863.5333 (512)4764372 3- SELECTED DATA FROM THE OFFICIAL STATEMENT The selected data on this page is subject in all respects to the more complete information and definitions contained or incorporated in this official Statement The offering of the Bonds. to potential investors is made onlv by meads of this entire Official Statement. No person is authorized to detach this data page. from this Official Statement or to otherwise use it without the entire Official Statement, This data page was prepared to panni the purchasers of the Bonds information concerning the Bonds, the. revenues pledged to payment of the Bonds; the description of the revenue base and other pertinent feta,. all as more fully described herein. The hisser .............. The City of Georgetown, Texas is apolitical subdivision located in Williamson County operating as a home -rule city under the laws of the State of Texas and a charter approved by the voters in 7976 The City operates under the Council/Manager form of government where the mayor and seven munalmembers are elected lot staggered two-year terms, The Council formulates operating policy for the City while the City Manager is the chief: administrative officer,. The City is approximately .14,283 square miles in area :(sea: Appendix A - "General Information Regarding the City"). The limed .....---.---- The Bonds ate being issued in the principal amount of $2,301 pursuant to the general laws of the State of Texas, particularly Articles 1111, at seq,, VATCS, and an Ordinance passed by the City Council of the City (see "Authority for Issuance"), Qualified Tox-Exempt Obliigatims- ..... ..... The City will designate the Bonds as "Qual tied Tax -Exempt Obligations"for financial institutions (Re "Qualified Tax -Exempt Obligations')). Security for the Bonds--- The Bonds constitute special obligations of the: City payable, broth as to .principal and intereal, and seated by afirst lien or, andpledgeof the Net Revenues of the City's Waterworks and Sewer System, The City has not covenanted or. obligated itself to pay the Bonds from mattes raised or to be raised from wore ai had "Security for Border), Opolmnal Redemption---- The City reserves the right, at its option to redeem Bonds having stated maturities on and after August 15, 2082; in whole or in part to principal -mrounts of $5,000 or any integral multiple thereof, on August 15, 2061; or any date thereafter, at the par value thereof plus accrued interest: to the date :fixed for redemption (see "Redemption of Bonds"), Tax Erempothil....... :In the opinion of Bond Counsel, they interest on the Bonds will be excludable from gross income for federal income tax purposes under existing law, subject to the matters described under "Tax Exemp4on herein,.: including: the alternative mitJmum tax on corporations. Use of Bond Proceeds.... The Bond proceeds will be used for the engineering and construction of a .wastewater treatment plant,: additional wastewater lines; additional land, modification of an existing wastewater plant and the cost of issuance of the bonds, Payment Record ........ : The City has never defaulted, 1Selected Issuerindces Fiscal Water Usage .(Thousand Gallons) Net Average Year Estimated Average :Available Annual Debt Coverage' Ended City Day Peak Day Total for Debt Service of 9134 Po ulation LL Usage Service Re uirements Debt 1486 13,436. 3,773 11377,910 ,241,123 -1,271,784 4191 1997 15;933 31937 1,437;090..4;332,232 I,$3;214. 3,42 1988 16;929 3,483 1,271,893 41160,762 1,238,332 1.31 1989" 17e317 31637 11334,880 3,041;687 1;150;264 4,03 1990 17t908 31400 1,241,078 3t781,633 1,424,757. :2167 elntludes 13 months due to change in fiscal. year, BOND INFORMATION Authority for Inuance The, Bonds are assued pursuant to the general laws of the Stale of: Texas, particularly Articles Ii11, at sen,;, VATCS, and an Ordinance approved by the City Council, Security for Bomds The Bonds ate special .obligations of the City :payable, both as to principal and interest, solely from and secured by a first lien onand pledge of the Net Revenues of the System after the payment of maintenance and operating expenses. Muntmorce and operating expenses indfude contractual payments which under Texas laws one their. provisions are established as operating expenses.. The Bonds are not a charge upon any other income or revenues of the City and shall never constitute an indebtedness or pledge of the general credit orlaxingpowers of the City. The Ordinance does not create a lien or mortgage on: the System aid any judgment against the City may not be oriented by levy and execution against any property owned by the City, except Net Revenues. As additional security, there has been established a Reserve Fund which shall be funded inanamount at least ecual to the average: annual debt service requirements of the outstanding. Previously Issued Bonds, and the Bonds and any Additional Bonds issued on a parity with the Santa The Reserve Fund will be funded ever a sixty month period in accordance with the provisions of the Ordinance (see "Selected Provisions of the Bond Ordinance").. Pledged Revenues All of the Net: Revenues of the System with the exception of those in excess of the amounts required to establish and maintain the Revenue, Reserve and Interest and Sinking Funds are irrevocably pledged for Vie payment of the Bonds and interest thereon. The payment of the Bonds and the interest thereon shall constitute a fust lien upon the Net Revenues of the System. Rates The City has covenanted in the Ordnance that it will at all critics charge aid collect for services rendered by the System rates sufficient to pay all operating, maintenance, replacement and improvement expenses; any other costs ieduetible in maiming Net Revenues and to pay interest on and the: principal: of the Bonds, and to establish and maintain the funds provided for in the Ordinance.. The City has further covenanted that, if the System should become legally liable for my other indebtedness, it will Fx and maintain rates and collect charges for ;the services of the Sys;en sufficient todischarge -such indebtedness.. Redemption of Bonds The .City :reserves the right, at its option, to redeem Bonds having statedma€urines on and after August 15, 202, in whole or in pan in principal amounts of S5,000 or any integral multiple thereof; on August 15, 2001, or any date thereafter, at the par value thereof plus: accrued interest to the date fixed for redemption. If less than all of the Bonds are to be redeemed and it less than all of a maturity is to be redeemed, the Paying AgentlRegistrarshall determine by lot the Bonds, or portions thereof, within such maturity to be redeemed, Not less than:H days prior to a redemption date for the Bonds, the City shall cause a notice of 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 AgentlRegistrar at the close of business on the business day :next .preceding the date of mailing such notice. Any notice of redemption so mailed shall be conclusively. presumed to have been duly given irrespective of whether received bythe bondholder, Additlonal Bords The City has na plans forissuingadditional Utility System Revenue Bonds during the next 18 months, Paying AgentlRegistrar The initial Paying AgentlRegistrar isAmefitrust Texas, N.A., Austin, Texas. In the Ordinance the City retains the right to replace the Paying Agent/Registrar, The City covenants to maintain and provide a Paying AgentlRegistrar: at all times: while the Bonds are ovtstandmg and any successor: Paying AgentlReglstrar shall be a commercial bank or trust company organized under the laws of the State of Texas or other entity duly qualified and legally: authorized to serve as and perform the duties and services of Paying AgentfRegistrar for the Bonds, Upon any change in the Paying Agent/Registrar for the Bonds, the City agrees to promptly cause a wri on notice thereof to be sent to each registered owner: of the Bonds by United States mail, first class, postage prepaid, which notice shall also give the address of the Raw PayingAgemRegnaar, Principal of the Bonds will be presentation: at the orincioal at oy, and atmerisk and expense of, the registered owner. If the Gate for the payment of the principal of or interest on the Bonds shall be a Sar Sunday, legal holiday, or day on which banking institutions in the. city where the Paying AgentfRegistrae is located are authorized bylaw or executive order to close, then the date for such payment shall be the next succeeding day w1ach 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. Transfer, Exchange and Registration I e comas may as marrsterreo and exchanged onthe registration books of the Paying AgeoliRegetrar only upon presentation and surrender thereof to the Paying Agent{Registrar and such transfer or exchange shall be without expense or service charge to the registered ownet, except forany tax or other governmental charges required to be paid with respect to such registration, exchange and transfer. A mg Agent/Registrar, in Ina of the Bond being transferred or exchanged; at the: principal office. ,ng AgeatSRegismar, or sent by United States mall, first Nass, postage: prepaid, to the new owner or his designee To the extent possible, new Bonds Issued in an exchange or transfer of be delivered to the registered owner or assignee of the registered owner in not more than three: request for exchange duly executeG by the: registered owner or his duly authorized agent, in form satisfactory to the Paying AgentlRegistrar; New Bonds registered and delivered in an exchange or transfer shall ben any integral multiple of S%toQfor any one maturity and for a like aggregate proandal limitation on Transfer of Bonds Called for Redemption Neither the City not the Paying Agem,Pegistrar shall be required to transfer or exchange to an as ighti of The owner of the Bonds any Bond called for redemption in whole or In part, within 45 days of the date fixed for redemption; provided, however., such limitacon a: transfer "shall not be applicable to an exchange by the registered owner of the uncalled balance of a Bond Record Date for interestPayment The record date ("Record Date) for the interest payableonany 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 ona'scheduled payment date, and for 30 days thereafter, anew record date for such interest payment (a "Special Record .Date) will be established by the Paying AgentfRegmtrar, it and when funds for the payment of such interest have been received from. the City, Notice of the Speual Record Date and of the scheduled payment date of the past due interest Mpecial Payment Date', which shall be IS 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 or each Holder of a Bond appearing on the: registration books of me Paying Agent)Regismaratthe close of business on the last business day next preceding the date of mailing ofsuch notice. The bond proceeds will be used for construction of a mew 2.4 ADD wastewater treatment plant, additional wastewater fines, modification of an existing wastewater treatment plant, the purchase of additional land, and asso6ated issuance costs. Sources and uses of Funds The. construction program will beduoded as follows: Sources: Proceeds from Sale of Bonds: $2,307,000 Investment Eam rgs from Urd Proceeds 85 000 Tota Sources of Funds t 38300o Uses: 'Cost of Land $ 100,o00 Cost of Construction 1928,000 Estimated EogioeeringCosts 506800 Estimated Costs of Issuance: 50 200 Total Uses of Funds. 2 38S 000 .7. THE SYSTEM Waterworks System Nater Supply The City Currently has dual water supply of both surface water and ground water. The surface water is secured from take Georgetown which is a federally financed project Witt water rights derived from the Brazos River Authority, The City has rights to six (6) MCD through its contact with the BRA. The City's water treatment plant is located at the lake and has atreatmemcapacity ofsix (6)MGD. This mince of water currently suppliesapprorimatsly n% of theCity's water usage. In addition the City has aground water supply from twelve (12) wells drawing from the Edwards Aquifer. Currently the City has only three (3) of these wells in production and has the capacity to treat six (6) MGD at its second water treatment plant located in the San Gabriel Park Approximately: 50%of'the current usage of water a supplied through this source. The City has addressed long-term watei supply based on the high Populates projection for the year 2030 of.67,800 by the Texas Valor Development Board. Projections for 2030 are 14 6 MCD with a peak of 3k2 MGD, At that time, Itis planned that an additional six (6) MCD of water will Se secured from take Stlllhouse Hollow, to: bring the total of water available to Georgetown to eighteen (18) MGD, The City has three separate agreements with the Brazos River Authority for water supply. Each of these agreements are summarized below. U1 Under awatersupply agreement dated January 24,1985, the City has agreed to pay for an average minimum of one million gallons per day (1120 acre-feet per year) to be drawn from LakeStillhouse Hollow During the fiscal year added September 36,,99,, the City Paid $32,51 to BRA under the: agreement, which extends for 50 years and maybe extended at the requpstof the City. (2) The City has an agreement dated April 20, 1978 and expiring in April 2078,10 purchase and withdraw u0 to 6million gallon o3 water per day (MGD)from Lake Georgetown Beginning in fiscal year 1990, the City is committed to purchase an aveagedaly minimum 6.MCD. The first 2 MGD is purchased at $ 09 per 1,000 gallons, or $94,900 annually. The increased purchase commitment in 199014 MGD) is to be paid at $.13 per MCD, or$131,400 annually, (3) The City is a party to an agreement dated June 30, D86, with the BRA, City of Round Rock and Jonah Water Supply Corporation BRA into design, construct and operate a pipeline to transport water from lake Stillmuse Hollow to Lake Georgetown. The BRA was appointed manager of the project and is responsible for operations: budgeting and financing The participants and their percentage shares of the project are. as fallowsi City of Round Rock 72.023% :City of Georgetown 22:794 "Jonah Water Supply Corporation 5.183 100:000% Water Storage The City has three overhead storage tanks of 360,000 gallons each in addition, seven ground storage tanks provide storage capiuty for approximately 81500,000 gallons; bringing the total capacity of the storage tacilmies to 10,000,000 gallons.. Water Distribution Currently the Cityhas some 230 miles of water distribution lines throughout its service area,. Water Usage (Gallons) Peak Average: Day Day Total .Fiscal ;Usage Gaage Usage Year i000's) (000'51) (000's) 1980.81 81090 31689 9811334 1981-82 71339 31206 :151170,023 1982-83 751215 31646 1,330;840 1983.84 71650 31784 1,31 1984.83 71870 31820 :11321;236 1985-86 81790 31775 113771910 1986.87 6,320 )2937 1,437;090 1987.88 61312: 3;485 1,271;895 1988.89 71490 31651. 151334;880 1989.90 lim 3100 •8- .11241,078 Ten largest Water Customers (Gallons) (12 Months Ending Ih31-90) Water Rate Study The City employed the firm of Black and Veatch; Inc.to perform a water rate study 1n 1988, Since that study, the City staff has performed annual reviews of the rates tomeet the financial needs Of the system. Monthly Water Rates (Effective 12.1490) Inside Outside Cit Limits Cit Limits Minimum (First 2,000.Gallons) $18,5c 26,00. Balance par .I,000Callooevier Mhmmum The Project With the proceeds of the Bonds, the City plans so engineer and construct a new wastewater treatment plant with a 2.4 MCD capacity; io perform some Minor modifications to its existing 2,5 MCD treatment plant; to construct new wastewater howl to purchase adequate land for th¢ new treatment3acdiiy; and to Par The cost of issuance of the binds Wastewater System The City's wastewater system currently Wies some 980,, of the current Georgetown populations,. The existingtreatment faulfiy with a capacity of 25 MGD aid the proposed treatment facility will provide the City with an approximate S,MGD treatment capability. The system also includes some 183 miles of wastewater lines and sixteen (16) lift sntiona Average Ulyflow (Wastewater Treatment) fiscal Gallons Nstab Average: Consumed of Total Customer (000s) Yater. Usage Southwesiernuniversity 9,336,400 .3,95% HEB 31896,100 2:43%'. Williamson County Sail 21049;006: 1128% Georgetown High School: 1;838,800 fab% .King Saver 11737,280 1108% .Safeway 1,723,480. 1108%: Georgetown Hospital 1;663;900 1:04% Wal -mart Stores, loci 1,490,700 i93% A'esleyan Home 11486,400 .93% Wastewater Plant .114001000 .97%. Water Rate Study The City employed the firm of Black and Veatch; Inc.to perform a water rate study 1n 1988, Since that study, the City staff has performed annual reviews of the rates tomeet the financial needs Of the system. Monthly Water Rates (Effective 12.1490) Inside Outside Cit Limits Cit Limits Minimum (First 2,000.Gallons) $18,5c 26,00. Balance par .I,000Callooevier Mhmmum The Project With the proceeds of the Bonds, the City plans so engineer and construct a new wastewater treatment plant with a 2.4 MCD capacity; io perform some Minor modifications to its existing 2,5 MCD treatment plant; to construct new wastewater howl to purchase adequate land for th¢ new treatment3acdiiy; and to Par The cost of issuance of the binds Wastewater System The City's wastewater system currently Wies some 980,, of the current Georgetown populations,. The existingtreatment faulfiy with a capacity of 25 MGD aid the proposed treatment facility will provide the City with an approximate S,MGD treatment capability. The system also includes some 183 miles of wastewater lines and sixteen (16) lift sntiona Average Ulyflow (Wastewater Treatment) fiscal Average Nstab Average: Year Dailyflow (MGD) Year Daily :Flow (MGD) 1981 11028 1986 1:824 1982 1.190. 1987 1;876 1983 1,406 7988 IXI 1984 .1,425 089. 11336 1983 1,601. 1990 1:703 Man1Ny Sewer Rates (Effective 17.1490) Residential Nonresidential first 3,000 Cations mo 10,00 Balance per 11000: Gallons 1.33 1,80 Maximum 13.73 No Maximum Largest Wastewater Customers (12 Months EnGing Ip -30-90) Top Ten Electric Customers (12.Months Encing10-31A0) %of Customer TOIal Usage San Gabriel Apartments 843,000 90% - Georgetown Park Apartments M1 000 ;66%. Williamson County Justice Center 40,000 143% WlliantCounty Courthouse b18,000 .43% Georgetown High School 408,000 0%. SouthwesternUmveysity :391,000 At%. Housing Authority 390,000 .42% Georgetown Athletic Spa 381,000 .41% Williamson County Jail 362;000 .39% Electric System. 1;665;900 The City owns and, operatesits electric cistribution system, purchasing Its wholesale power from the Lower Colorado River Authority under a longterm contract extending through the year 2016, Under the City's hiMing; from LCRAs the cost of power during the last fiscal year averaged over $581,000 per month. Monthly Electric. Rates (Effective 10.30-90) 193% Residential Rate I;400;0oo Customer Charge: $6,00 per month, includes 30 KWH Energy Charge: $0,0320 per HWH for all additional KWH Commercial Customer Charge: $10.00 per month Energy Charge: $0A4600pet KWHfor all KWH Church, Rate Customer Charge: $6.00 per month, includes 30KW'H Energy. Charger $0,0350 per KP'H foradditienal K6'H School Rate Customer Charge: $6.00 per, month, inclumvi M KWH Energy Charge; SUM per KKR'H lot all additional$WH Large Cont (Demand Customersl Customer Charge; $13.00 per customer per month :Demand Charger $5;50 per kw Energy Charge; $0.018C per KWH for all KWH All Customer Fuel Charge: $0,0161 per KIHfor 9KWH. Purchased Power: Cost Adjustment; $0.01433 per KWHtor allKF'H Sales Tax Residential: 1% of electric charges Commerc aL. 7.25% of told electric charges Top Ten Electric Customers (12.Months Encing10-31A0) .10- Consumption %of {ustomeC "(0004) Totall)saRe Southwe$emUniversity 9,i3bp00 5195% U.S.. 318961100 :2;43% Williamson County Jail 210491oluo 1:18% Georgetown High School. 11858r80o .1116% King Saver 11232)280 1108% Safeway 11113,480 1108% Georgetown Hospitml 1;665;900 IM WaGMartStores, Inc, 1,490,200 193% Wesleyan Home 10486;400 193% Wastewater Plant I;400;0oo .87% .10- DEBT INFORMATION i x x xr n m u8 S� xw N N PO ya fPftlbP APPP fqP Na. Y" yR� p �yP PWrNPnnfNY mNN B. NW�HL H N W 0 N OY bY N O 01 01 Y{. N. OM n!p.ViO N YEN Jf N.MVMN P nn.innH .in nnwnnw N N u. p p W zooaO: NNNONNNO o a WNO WNgq N�pp NM'l1 YI pn ryry yNy �yN�b PMVb NWO n�D NN WVf b NNNNNNN NNNNNNMM f N 0000°0:000noonNN:a.. W NO'O NN NN NanNN m N PNWNYb:M1h,.�p Ni!fONN �O nniO N.ilie MN nO PNbB Nnn �tinHNnr!n... W a000B000000coo o nB.o oa Baeo Bo o' 0 o NOOHNFlNO NnahO O n n nnn nnry NDN M: M ry ♦N tlggV Nb P�PpPPO�V VtlOB P fNM1 bN PNeIHGNrfinP b.M �d.WOFl O.M-I NM 00 N<M♦ IMMMMM1NNN NN NNH.OW n nrVnnnnHHnnH n.. tlNV MNMNNnrPI V q V00 P FlNN PbWria NH'n P`➢T tl PMPYP'S yN NNOOPM!b. P WW n'n b+L YiN PMFlN N OOBBOOO Ba068000 D N a aqm Npa yB�Oe uryfO ayN�N Yf N VVf NNNbnhWPPPOM M a X Q� pry�pn, m yQ���py�p Mm NMV 08 41 PPP„„PP 000090000 MM nnHNNNNNNN Authorized But Unissued Revenue Bonds- None Anticipated hum of Revenue Bonds The City does not anticipate the issuance of additional Utility System RevenueBonds during the next 18 months Selected Provisions of the Bond Ordnance The City of Georgetown will adopt an ordinance (the 'Ordinance") authorizing the Bonds, which will be in substantially the same form as the ordinance authorizing the outstanding bonds, selected provisions of which are shown below: Section 8. Definitions, That as used in this Ordinance the following terms shall have themeanings set forth below, unless the text hereof specifically indicates otherwise: (a) "Ck" or "Issuer shall mean the City of Georgetown. (b) 'City Council" or°Courcl" means the governing body of the City of Georgetown. (c) BOndi shall mean the $2,708,00.7 of revenue bonds authorized by tie Ordinance, (d) "Outstanding Bonds" or "Outstanding Revenue Bonds" shall mean the "City of Georgetown Utility System Revenue Bonds, Series 191411, dated October 15, 1974, "City of Georgetown Utility: System Revenue Bonds, Series 19841, dated July 15, 1984, and "City of Georgetown Utility System Revenue Bonds, Series 198f, datedLly 15, 19S5. (e) 'Parity Bonds' shall mean collectively the Bonds and the Outstanding Bonds. (f) "Additional Bonds"shall mean the additional parity revenue bonds permitted to be issued under the proviaonsof the ordinance authorising the Party Bonds. (g) Utility System" shall mean the System created and established for and on behalf of the issuer under the provisite of the ordinances autharizmg the Outstanding Bonds. (h). ' Net Revenues' and "Pledged Revenues" shall mean the revenues derived from the operation of the Utility System as such revenues are defined and pledged in Section _of this Ordinance. (i) 'Utility System Revenue Fund, "Utility System Revenue Bonds Interest and Sinking :Fund','Utility System Revenue Bonds Reserve Fund', and 'Utility System Contingency Fund" shall mean the special funds which the City Council has heretofore created and ordered to be established and maintained for the. payment of the expenses of operating and maintaining the Utility System and costs of certain repairs or replacements to said System and for the payment of principal of and interest on the bonds outstanding. against the Utility System, as hereinafter more specifically stated. section 9. Utility System. That the Utility: System (hereinafter sometimes called the"System'9, as created and established by the City Council, is comprised of the entire waterworks system, the entire sewer system, and the entire electric light system now owned and by the City of Georgetown,. Texas, together with all improvements, extensions, and additions thereto which may be made while any Parity Bonds or Additional Bonds remain outstanding against the System. Such Utility System: shall be. Operated an the basis Of a fiscal year commenting on October I of each year and ending on September 30 of the following year, Section 10. Pledci of Revenues (a) The Bonds herein authorized and the Outstandidg Revenue Bonds shall be equally and ratably secured by and payable from an irrevocable first lien on and pledge: of the income and revenues serviced and to be derived from the operation of the System, after deduction therefrom of theamount necessary to pay alloperating,maintenance, replacement and betterment charges of the System, as is required by ArCcle If131of the Revised Crvil Statutes of Texas, 1925, as amended, end by other applicable statutes of: the State of Texas,: and the following sections of this Ordinance are cumulative of and Supplemental to the pertinent provisions of the ordinances authorising the Outstanding Revenue bonds. (b) The Bonds are being issued as additional parity revenue bonds defined as 'Additional Bonds' in the ordinance passed by the Issuer on March 9, OR, autlwrizing the issuance, sale and delivery of the Issuer's Utility System Revenue bonds, Series 1964; and defined as "Additional Bonds' in the ordinance passed by the Issuer on October 31,:1974, authorizing: the Issuance, sale and delivery of the Issuer's Utility System Revenue Bonds, Series 1974. Section 11. Maintenance of: Rates, The Issuer hereby covenants and agrees that it will, at all times, while any of the Panty Bonds or,any Addtlmnal Bonds, or anyinterest thereon, are outstanding: and unpaid, charge and collect for services rendered by mid Utility System rates sufficient to pay all maintenance, depreaahon, replacement, betormentt and interest charges and to provide am Interest and Sinking Fund sufficient to pay the interest and pttneipai of such bonds as such interest and ormcioal mature and aov lot the benefit of any and all "subsequent holders of the Parity Bonds; any pert thereof, and in addition to all other provisions and covenants in the. Rd in this. Ordinance, it is expressly cover arced that the Issuer shall fix and to all other customers which will provide revenues sufficient at all times, (a) to pay all operating, maintenance no replacementcharges of the Utility System, as is required by Article 1113 of the Civil Statutes, as amended; and by other applicable statutes of the State of Texas; (b) to establish and maintain the Interest and Sinking Fund and theReserve fund for the Parity Bonds and for any Additional Bonds; (c) to pay, in addition, all outstanding indebtedness against the Utility System other than the Parity Bonds, orany Additional Bonds, as and when the same become due; and (d) to provide for the payments into the "Contingency Fund" as requited under the provisions of the ordinances authorizing the issuance of the Parity Bonds. Sectionit Uhhty 3y stem Revenue Fund. There shall be deposited in the. Utility System Revenue fund (already established) as collected all revenues derived from the operation of the Utility System, which fund shall be maintained separate and apart from all other funds of the Issuer. Such Utility System Revenue Fund shall be maintained so long as any Parity Bonds,: or any Additional Bonds;: remain outstanding, in the Issuer's official depository; and shall be administered as follows: (a) Operationand Maintenance Expenses: The money inthe Utility System Revenue Fund shall beused first for the payment of the reasonable and proper expenses of operating and maintaining the Utility System, including salaries; labor, materials, interest, repairs and extensmns necessary to render efficient service The words "repairs' and "extensionsaas used in ins paragraph shall be construed to refer Only to. such repairs and extensions; as in the judgment of the govemingbody of the Issuer, ate necessary to keep the System in operation and render adequate service to the Issuer and the inhabitants thereof, or such as might be necessary to remedy some physical accident or condition which would otherwise impair the. security Of the parity Bonds or any Additional Bonds; M Bond Fund.- The amounts to be Did into thelltility Svvttm PpmTo Annd<toxerP0 eMdCi"tiho p1md Bontls, or any Additional Bonds are outstanding, shall be an amount equal to 100 per of the amount: required to meet the interest and principal payments falling due on or before the nest maturity date of. theParity Bonds or any Additional Bonds then outstanding On or before the 10th day ofeach month,. atter payments have been made as required by subsection (a) of this Section 12, the Issue shall w3hdraw from the Utility System Revenue Fund and deposit in the Bond Fund an amount not less than the total of 1)12th of the next maturing installment of principal of the parity Bonds then outstanding, and of any Additional Bonds then Outstanding, and 116th of the nextsemiamwal installment of interest on the Parity Bands then outstanding and on any Additional Bonds then outstanding, :The montes In the Bond Fund shall be used solely for the purpose of paying the interest on the principal of the Parity Bonds,:and any Additional Bonds,. until all such hands have been retired, In the event the income and revenues of the Utility System are insufficient in any month to permit the required deposits into the Bond Fund in full accord with the provisions hereof, then the amount of any deficiency shall be added to the amount otherwise required to be: deposited in aid Bond Fwd in the next month, until all deficiencies are rectified That toncurremly with the delivery of the Bonds to the purchasers thereof, all sums Of money received from the purchasers as acaoed interest paid on the Bonds shall be placed in the Bond Fund. (rU Reserve Fund:. The Issuer currently has on deposit: in the Reserve Fund $1;321;613, and has and additional regmred reserves of S in the manntr set out In this Ordinance, requiring monthly payments to the reserve fund of 7 � over the next 60 months, The Issuer covenants and agrees that in the event Additional Bon& are issued as hereinafter provided, the entrance authorizing such Additional Bonds shall Provide for to payment into the Reserve fund of such additional sums as shall be necessary to permit an accumulation in the Reserve Fund within five years and me month from the date of the Additional Bonds, as an additional reserve, of an amount of money at least equal to one year's average annual prmupal and interest requirements on the Additional Bonds then outstanding, The Reserve Fund shall be used to pay principal of or interest on the Parity Bonds and such Additional Bonds falling due at any free for the payment of which there isnot money available in the Bond Fiord. No payments need be made into the Reserve Fond after there shall have beer accumulated and shall must in 13- said Fund the amount of money herein stipulated as required reserves; but if at any time it becomes necessary to use temporarily any part of such Reserve Fund for 'the payment of principal "or interest on the Parity Bonds, or it is otherwise depleted, payments into the Reserve Fund in the amount of $m—. monthly shall be initiated until such time as such Fund contains the amount sof money then required to he on deposit thsreum Thelssuer's official depository is hereby authorized to invest the money in the Reserve Fund in direct obligations of or obligations unconditionally guaranteed by the United States Government, having maturities not in excess of five (5) years from the date of the making of such investments, as the City Council may direct,. Said obligations shall be deposited in escrow with said depository under an escrow agreement, and if at any time uninvested funds shall be insufficient to permit payment of principal and interest maturities of the Parity Bonds or any Additional Bonds then outstanding as heretofore directed, said depository shall sell on the open market such amount of the securities anis required to pay said Parity Bonds or Additional Bonds and the Interest thereon when due, and shall give due. notice thereof to the Issuer. Admoney resulting from the maturity ofthe principal and interest of the termites in which the Reserve Fund is invested may be reinvested and accumulated in said Reserve Fund and considered a part thereof and used for and only .for the purposes hereinabove:provided with respect to said Fund. The Reserve Fund for the Series M Bonds and Series 1W Bonds may be commingled with Reserve Fund established for series of bonds hereafter issued which are similarly secured and payable from the same source without impairment of the obligation of the contract; She Issuer further covenants that when Additional Bonds are smid, the aggregate amount to be accumulated and maintained in the Reserve Fund shall be not less than the average annual principal and interest requirements of all bonds similarly secured, and any additional amount required to be accumulated in the Reserve Fund shall be accumulated therein in not less than live years and one month from the date of Additional Bonds Money in the Reserve Fund may be invested in direct obligations of or obligations unconditionally: guaranteed by the United States Government having maturities Actin excess of live years from the date of the making of such investment,. Based on an annual :review of the experience as to the cost of repairs and of the Issuer's consulting engineer, the City Council has determined that the Utility System Fund (hereinafter teferreJ to as the "Contingency Fundn),heretofore created and of established and maintained in the amount of $15,000 is sufficient for the time being.. The Fund shall be used topay :(1) the cost of any repairs or replacements to the Utility System ne the occurring of an emergency and (t) interest on andlorPrincipal of;the Parity Bonds or Bonds, when other: funds of the Issuer are insufficient for such purpose. The Issuer covenants and agrees that in the event Adeoional Bonds are issued, the ordinance authorizing. such Additional Bonds shall provide for such appropriate additional or larger amounts to be accumulated in the Contingency Fund as deemed advisable by the City Council, based on annual review Of the experience as to the cost of repairs and ieplacemems to the Unity System necessitated by the Occurring of emergencies and the recommendation of a consulting engineer, Na payments need be made into the Contingency Fund after there shall have been accumulated in said Fund the am Our, money then required to on deposit therein, except that whenever any money is paid out of said Fund; payments into the Fund shall be resumed and continued until such lime as the Fund has been restored to the required sum, The Issuer's official depository is hereby authorized to invest the money in the Contingency Ford indirect Obligations of Of obligations unconditioma0y guaranteed by the United States Government,. having maturities not In excess of live (S) years from the date of the malting of such oveslment,.as the City Council may direct, Any obligations inwhich money is so invested shall be kept in;escrow in said depository and shall be promptly sold and the proceeds of the sale applied to the making of payment required to be made from the Contingency Fund; whenever such payments are required to be made order to foregoing provisions of No Ordinance. Revenue Fund after into the atter all deficiencies shall have been made up and all replacements made, shall be either wed of accumulated for the making of improvements; extensions and additions to the Utility System, or may, in the discretion of the Issuer be wed for any other city purpose now or hereafter permitted by law, including the use thereof In refiring in advance of maturity any Additional Bonds then outstanding, In accordance wild provisions made for their prior redemption, or may be used to purchase the Parity Bonds and Additional Bonds an the open market at not exceeding the market value thereof. All bonds 0 paid, redeemed or purchased shall be cancelled and shall not be reissued; Nothing herein shall be construed, however, as impairing the right of the Issuer to: pay in accordance with the provisions thereof any junior lien bonds hereafter legally issued by it, Section U, Securit for Funds. All monies which are to be paid into thedepository under the provisions. of the ordinances authorizing the Parity Bonk shall be secured in accordance with the laws of the State of Texas applicable thereto, and the Issuer covenants especially that such money shall be continuously secured by a valid pledge of direct obligations of; or obligations unconditmmally guaranteed hy; the United States Government, having a par value; or market value when less than par, exclusive of accrued interest, at all times at leastequal to the total amount of money on deposit the several funds in the depository. Section 14 Additional Bonds. in addition to the right to issue bonds of inferior lien as authorized by the lawsof this StatertheIssuer reserves the right to issue further and additional bonds from time to time Payable from the net income and revenues of the Utility System; and, when issued in compliance with law and the terms and conditions hereinafter appearing, such Additional Bonds shall be equally secured by a first lien on and pledge of the Pledged Revenues; and the Additional Bonds, when issued; shall bepayable from the Utility System Revenue Bonds Interest and Sinking Ford and shall be in all respects of equal dignity and on a Parity with the Parity Bonds,PROVIDED, that in each instance; {a) the Additional Bonds are authorized and issued in conformity' with the Constitution and applicable statutes of the State of Texas; (b) the Bond Fund, the Reserve Fund and lite Contingency: Fund contain the amount of money then required to be on deposit therein and the Issuer is in compliance with all other covenants and undertakings in connection with all bonds then outstanding and payable from the Net Revenues of the utility System; (c) the Net Revenues of the Utility System for either the I scal year or twelve-month period next preceding the date of the Passage of an ordinance authorizing the issuance of the Additional Bonds are certified by a certified public accountant to have been at least,equal to one and one -heli times the average annual Principal and interest requirements on all bonds .then outstanding against the Utility System and the bonds then to he issued; (d) a competent independent engineer certifies in writing that in his opinion the raverage annual net earnings throughout. the life of the bonds them outstanding against the Utility System and the bonds then to. he issued shall be at least equal to one Md one-half times the average annual principal and interest requirements on all bonds then outstanding against the Utility System and the bonds then to be issued; (e) the ordinance authorizing the issuance of the Addrmnal Bonds shall provide U) for an identical flow of funds as prescribed by Section I I of the Ordinances authorizing the Parity Bands, (ii) that all revenues deposited in the special funds and accounts created andestablished by such ordiinances shall be commingled; and ilii) for appropriate additional or larger payments to he made into said special funds and accounts and for appropriate additional or larger amounts -to be accumulated in said special funds and accounts for oil bonds then outstanding against the Utility System and the proposed Additional Bonds, in full accord with the provisions of the ordinance,. Section l3.: h4ainteoance and Operat on: Tne Issuer Hereby tgvenants and. agrees to :maintain the lacihnes at the Utility System in goad condition and operate ihesame m an eHici&ntmanner and at a reasonable cast. So long as any Par ty Bonds are outrtanG;ng ihelssuer covenamsantl agrees to maintain. insurance for the henetitot the holder or holders of such 6dntlsot the kinds and intheamounts which usually are earned by :private companies operahog similar prdperiies, and that duringsuch time all polities et msurad<e shall tie mvnimn¢d im farce and kept current azm premium payments,. All monies received from losses under such msuramce polities other than pubRcliabihty po6ues; are hereby pledged as secunty for such fronds until and unless the proceeds are paidout in making goat lne loss or damage in respect of which scohpropeeds are recened, either by repla4ng the property destroyed or repairing the. property damaged, and adequate provision for making good such loss or damage made within ninety (40) days after the date of loss. The payment of premiums for all Insurance policies required under the Provisions hereof shall bec and idered as maintenance and operation expenses, covenants and agrees that so long as any Parity I unpaid, it will keep and maintain a proper and. apart from all other records and accounis;:in which complete and correct entries shall bemade of all. transactions relating to said System as provided in Article 11130 Revised Civil Statutes of Texas, 1925,. as ,_..�., ._1 It . .1 k * I ,i wiu cause an aualt m such bands and accounts to be mark by an independent firm of certified accountants, showing the receipts and disshmsements for account of the :Utility System for the year, and eachsucb audit, in addition to whatever other matters may bethought proper by the (a) a all statement of the income and expenditures for account of the Utility System for such fiscal year; (b) a balance sheet as of the end of such fiscal year (c) the accountant's comments regarding, the manner in which the Issuer has carried out the requirements of this Ordinance and his recommendations for any changes or improvements in the operation, records and accounts of the Utility System, (d) alist of the insurance policies in force at the end of the fiscal year on the Utility system properties, setting out as to each policy the amount thereof, the risk covered, the name of the insurer, and the policy's expiration date (e) a list of the securities which have been on deposit as security for 'the money in the Bond Fund,the Reserve fund, and the Contingency Fund throughout the fiscal year;a list of the securities, if enc; in which the Reserve Fund and the Contingency Fund have been Invested, and a statement of the manner in which money in the Utility System Revenue Fund has been secured in such fiscal year; (f) the number of metered and unmetered customers connected with the various departments of the Utility System, showing totals as of the end of the year; Expenses incurred in making: the audits above required are to be paid as maintenance and operation expenses, The Issuer further; agrees to promptly furnish a copy of each such sell to First Southwest Company; Dallas, Texas;and to any holder of any of the Bonds who shall request same in writing, and that the holder of any of the Bonds shall have the right to d scuis with the accountant making the audit the contents of the audit and to ask. for such additional information as he may reasonably request. Section 17, Sale, Lease or Other Encumbrance of Slstem;:The Issuer hereby covenami, hired and obligates itself not to sell, lease or in any manner dispose of the Utility System, or any part thereof; including any and all extensions and additions that may be made thereto, until all bonds shall have been paid in full as to poth principal and interest (provided that this covenant shall not be construed to prevent the disposal by the Issuer of property which in Its judgment has become inexpedient to use in connecdon with the Utility System when other property of equal vale has been substituted therefor), Section 18, No Competing System. That so let as it legally may, the Issuer covenants and agrees for the protection and security of the Bonds and the holders thereof, from time to time; that it %III not grant,a franchise lot the operation of any competingwaterworks, sewer rill electric light system in the Issuer, until all Bonds issued hereunder shall have been retired. Section 15. Remedies in Event of Default. In addhion to all the rights and remedies provided by the laws of the State of Texas, the Issuer covenants and agrees particularly that in the event the Issuer (a1 defaults in the payment of the principal of or interest on any Bonds when due, (b) fails to make the payments required by Section I I of the ordinances authorizing the Parity Bonds to be made into the Bond Fund, Reserve Fund and Contingency Fund, or (c) defaults in the observance or performance of other of the: covenants, conditions or obligations set forth in this Ordinance; the following remedies shall be available: (i) the holder or holders of any of the Bonds issued hereunder shall be entitled to awrit of mandamus. issued by a court of Paper jurisdiction compelling and requiring the Cloy Council and other officers of the issuer to observe and perform any covenant, obligation or condition prescribed in this Ordinance;. W no May or omission to exercise any right or power occurring upon any default shall impair any such righter power or shall be construed tobeawaiver of any such default or acquiescence therein; and every such right and power may be exercised from time to time and as often as may be deemed expedient: The .specific remedies herein provided shall be cumulative of all other existing remedies and the specification of such teme tresshall not be deemed to be exclusive, hater will duly and Punctually keep, observe and on its part to be kept, observed and performed, n all duties with reference: to the Utility System to the Issuer and to all other customers, adjusting such rates and charges from time to time in such manner as will be fully sufficient to meet off the requirements of the ordinances authorizing the Parity Bonds, and the proper segregation and application of the revenues of such System; (b) the Issuer is duly authorized order the laws of the State of Texas to issue the Bonds and to pledge' the revenues pledged hereunder, and all necessary action on the part of the Issuer and its City Council for the issuance of the Bonds have been duty and effectively taken, and that the Bonds in the hands of the holders thereof are and will be valid and enforceable obligations of the Issuer In accordance with their terms; (c) that the Bonds authorized hereunder: shall be special obligations of the Issuer and the holder thereof shall never have the right to demand payment out of funds raised or to be raised by taxation; (d) that other than for the payment Of the Bonds and the outstanding Series 19A Bonds, Series ON Bonds and Series 1995 Bonds, the rents, revenues and income of the Utility System have not been pledged in any manner to the payment of any debts or obligations of the Issuer not of said System; (e) that the Utility System of the Issuer is free and dear of all tncumhraxes; Section 21Nuance to Constitute Contract. That the prvdsions'of this Ordinance shall constitute a contract between the Issuer and the holder or holders from time to time of the Bonds, and after the issuance of any :said Bonds, no change, variation or alteration of any kind of the provision of this Ordinance may be made, unless as herein otherwise provided, until all of the Bonds shell have been paid as toboth principaland interest. Section 22. Special Obligations. That the Bonds authorized by this Ordnanre are and shall be special obligations of the Issuer,and the holder or holders thereef shall never have the right to: demand payment Of said obligations out of any funds raised or to be raised by taxation. FINANCIAIINFORMATION Utility System EXPENSE _ Fiscal Year Ended September 30 1990 1989(2) 1988 1987 1986 REVENUE(I) $ 4951802 Sewer System 315,986 231,901 232;922 Waterworks System $ 2,835,264 j 31067,361 $ 21711,767 $ 2s336,692 $2;629;§33 Sewer System 7803461: 7423730 4171836 427;790 449,999 Electric System 10,0881312 10,0353919 813832511 7;822,387 9;003;408 Miscellaneous 478,149 421,776. 376,276 329,270 489,321 Interest Earnings 1033 ID IS 213 384 1044 V02 13372 188 79i,99p 1212 681 332332 1,054,634. 1111 970 113113' 2,182,873 13736 834 EXPENSE Waterworks System. $ 515,591. $ 5261708 $ 433,613 $ 334,527 $ 4951802 Sewer System 315,986 231,901 232;922 423;248 374143 Electric System, 395,810 374,920 325183 363,243 414;839 Utilily Customer Service 286;496 273,173 229,093 234920 212,262 General Administration 430,996 324,439. 654;918 746,261 749,621 Maintenance M Engineering 376,96 2961569 3851870 178,197 j96j331 Utility Contracts. 9 112 380 8 242 791 6 236 169 5,339,065 S 055;991 II 433 943 10 290 301 ffi2 ],63a,4fi1 7'309,709 NET AVAILABLE FOR DEBT SERVICE 3 781 63F S 0UI 6874 160762 4 3� 32522 LL47,1125 Water Customers 61157: 61075 51933 5;966 6,098 Sewer Customers 41517 41437 41464 41427 41300 Electric Customers 7,230 71In 61979 61927 61915 I Capital Recovery Fees and Developers Contribution excluded from revenues, (2) Due to change in fiscal year, this covers a 13 month period of hme; Coverage ad Fund Nam Average Annual Principal and Interest Requirements, 19912006 .............. —•----.- $114241753. Coverage of Average:Requiremenls b11989.90 Net Income ......................... 2.65 times Maximum Principal and Interest Requirements, 1992 .. ..-. -•----$1,618,189 Coverageof Afanmum Rchdrerrentsby 198990Net Income =----......... '2.34Times Utility System Revenue Bonds to be Outstanding after Issuance: o7 These $2,300,000 Bonds at 104-90 Interest and Sinking Fund, 12.1.90 ------- -------- Reserve Fund, 12.190 ConBngency Fund,12.1.90..... -............ - .. -is- $121675,000 $ 348,137 S 13321;673 $ 13;oo0 Citys Equity in System "Includes:1982 Series Certificates of Obligation paid by Utility Fwd. 19. Fiscal Year Ended September 30 Utility System 1990 33;863,938 1989 .33;471,308 1988 30,865,863' 1987 217973 1986 17,449,483 Less Reserve for Depreciation. Net Value of the System 6 805 0% 27,058,840 6 5% 630 26934,658 3 622723 23;2y3,138 4 x46655 23,3u8;87). 3 493 962 13,9SS,i21. Plus Construction Fund Net Plant 2 973 356 30,034,39630,493,341 3 558 689 3 941 628 29,18V,766 6 377 022 t9,12S,89927,iSS,34k 13 399 821 Plus Net Working Capital Total 1687 80 31,722,196 7 039 176 37,S32,St3 3 960 336 Wt 5 438 633 7S,18V,3S2.33,694;961 6 139 619 Revenue Bond Debt* $10;7431000$111290,000 $I1,f83;000 $121240,-000 $12,646;000. Leis interest and Sinking Fund and Reserve Fund Net Revenue Debt: 1 418 313 9,266687 1 230 410 " 10,039,390 1 168 232 : 10,616;768 994 983 11,245,0197967,459 678 641 City's Equity in System $28,435;309 $27,472,933 $24,328334 $23,9141537 $21,727,602 Percentage City's Equity in System' 75;43%' 7&20% :69,62% 68,5% 64748% "Includes:1982 Series Certificates of Obligation paid by Utility Fwd. 19. Financial Administration The financial administration of the City is vested in the Department of finance, The Department of Finance operates under the Director of Finance, who is appointed by the City Manager. Required activities of the Department of Finance: are control, custody and disbursement of City funds, data processing, utility billing and collections, City wide purchasing, annual budget preparation and interim and annual fmanmal reports, Financial Policies Basis of Accounting ..rThe -City's accounting records of the governmental fund revenues and expenditures are recognized on the modified accrual basis. Revenues are recognized in the accounting period in which they are available and measurable. Expenditures are recognized in the accounting period in which the fund liability is incurred, if treasurable, except for unmatured interest on general longterm debt. The accrual basis ofaccowung is utilized by: proprietary funds; Under theaccrual basis of accounting; revenues are recognized in the accounting period in which they are earned and become Measurable. Expenses are recorded in the accounting period incurred, if measurable. General Fund Balance .. The City policy is to maintain surplus and unencumbered fund at a minimum of $500,000. This allows the City to avoid interim borrowing pending tax receipts and provides flexibility should actual revenues fall short of budgetestimates. Use of Bond Proceeds, Grants, etc.. The City's policy is to use bond proceeds, grants, revenue: sharing or other non-recurring revenues for capital expenditures only. Such revenues are never to be used to fund City operations. Budgetary Procedures..; The City Charter estabbshes the fiscal, year as. the awelve-month period beginning October 1. The departments submit to the City Manager a budget of estimated expenditures for the ensuing fiscal year by the first of June. The City Manager subsequently submits a budget of estimated expenditures and revenues to the City Council by August 31. The City Council shall hold apublic hearing . OR the budget after giving at least 7 days notice of the hearing in the official newspaper of the City, The: Council shall then make any changes in the budget as it deems advisable and shall adopt budget not later than the 271h day of the last month of the fed year. During the fiscal year, budgetary control is maintained by the review of departmental appropriation balances with purchase orders prior to their release to vendors. Departmental appropriations that have not been encumbered lapse at the end of the fiscal year, Therefore, funds that were budgeted and not used bl the departments during the fiscal year are not available for their me unless appropriated in the ensuing liscal year's budget,: Fund Investments , ., The City investment policy parallels state law which governs investment of public funds; The City restricts investments to direct obligations of the United States Government, to insured or collateralized bank certificates of deposits, to the Local Government:Inmstment Investment: Pool, and other legal investments that are specifically approved by the City Council, - 20. Ratings OTHER RELEVANT INFORMATION City is rated "A" byMoodys Investors Service, Inc tion ("UP'"h Applications for contract ratings on this explanation of the significance of such ratings may be The ratings reflect only the respective views of such either of them; may have an adverse effect on the market price of the Bonds: Tax Exemption In the Opinion of McCall, Parkhurst G Horton, Dallas,,. Texas, Bond Counsel, under existing statutes,. regulations, published rulings and court decisions, interest on the Bonds is excludable from the: gross income of the owners of the Bonds for federal income tax purposes, m expressing their opinion that Interest on the Bonds is excludable from the gross income of the owners of the Bonds, Bond Counsel will rely on the City's no -arbitrage certificate, and Will assume compliance by the city with certain covenants of the City with respect to the use and investment of the proceeds of the Bonds, Failure by the City to comply with these Covenants may Cause the interest on the Bonds to become includable in gross Income retroactively to the date of issuance of theBoa& Bonds will he includable as an adjustment for book income or adjusted alternative: minimum taxable income for purposes of determining the on corporations by section 55 of the Internal Revenue Code of 1986 (the. m ronmentaltax imposed on corporations by section 59A of the Code: rations doing business in the United States may be subject to the new tchvely-connected earnings and profits including tax-exempt interest mthermore, in the case of an S corporation, interest on the Bonds is )ine" which is subject to the tax imposed by section 1375 of the Code, The Code includes as an individual and corporate alternative minimum toy preference item, the interest on certain "private activity bonds' issued after. August 7, 1986, In the opinion of Bond Counsel, the interest on the Bonds is not an alternative minimum tax. preference item under section'57(a)(5) of the Code. Except as stated above with respect to the exclusion of the interest on the Bonds from gross income, Bond Counsel expresses no Opinion as to any other federal income tax consequences of acquiring, carrying, owning or: disposing of the Bonds:. The law upon which Bond Counsel has based their opinim is subject to change by the; Congress end the Department of the Treasury and to subsequent judicial and administrative interpretation. There can beno assurance that such law or the interpretation thereof will not be changed in a: manner which would adversely effect the tax treatment of ownership of the Bonds; Prospective purchasers of the Bonds should beaware that the ownership of tax-exempt obligations may result in collateral federal income taxeomeguences to financial institutions, property and casualty insurance companies, Individual recipients of Social Security.. or Railroad Retirementbenefits and taxpayers who may be deemed to have incurred or continued indebtedness to purchase or carry tar - exempt obligations, .prospective purchasers faldngwittun any of these categories should consult their own tax advisers as to the applicability of these consequences: QualifiedTax-ExemptObligations Section 265 of the fadeprovides, in general, that Interest expense incurred to acquire or carry tax• exempt obligations is not deductible from the gross income of the holder, For certain holders that are "financial Institution? within the meaning of such section, complete Coaflowaoce of such expense would apply to taxable years beginning after. December 31, 1986, with respect to tax-exempt obligations acquired after August 7, 1586. Section 265(b) of the. Code provides an exception to this rule for interest issuer as tax-exempt obligations issued. The City expects todesiguetethe Bonds as"quxgfiedtax-exempt Obligations" Furthermore, the City will represent that it has or wig take well action as is necessary for the Bonds to constitute "qualified tax• exempt obligations". Accordingly, it is anticipated that financial institutions that purchase the Bonds will not be subject to the 100 percent disallowance of interest expense under section 265 of the .Code, 21 However, such: purchasers would is subject to the 20 percent interest disallowance rule applicable under prior law, Tax Accounting Treatment of Orig nal Issue Discount The initial public offering. price to be paid for one or more maturities of the Bonds (the 'Original Issue Discount Bonds") may be less than the principal amount thereof, In such event, the difference between (i) the amount payable at the maturity of each Original Issue Discount Bond, and (ii) the initial offering price to the public of such Original Issue Discount Bond constitutes original issue discount with: respect to such Original Issue Discount Bond in the hands of any owner who has purchased such Origlnal issue In the event of the redemption, sale or other taxable disposition of such. original Issue Discount Bond prior to stated maturity, however, the amount realized by such owner in excess of the basis of such Original Issue Discount Bond 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 Bond was held by such initial owner) is includable in gross income; Under existing law, the original issue discount on each Original Issue Discount Bond is accrue daily to stated maturity thereof lin amounts calculated as described below for each six-month period ending on the date before the semiannual anniversary dates of the date of the Bonds and ratably within each such six month period) and the accrued amount is added to an initial owner's basis for such Original Issue Discount Bond 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 prim periods multiplied by the yield to stated maturity (determined on the basis of compounding atthe dose of each accrual period and properly adjusted for the length of the accrual: period) less (b) the amounts payable as current interest duffing such accrual period on such Bond The federal income tax consequences of the purchase, ownership, redemption, safe or other. disposition of Original Issue Discount Bonds 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 Bands should comfit their awn taxsdnsors with respect to the determination for federal, state and local income tax purposes of interest accrued upon redemption, sale or other disposition of such Original Issue Discount Bonds 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 Bonds. Litigation It is the opinion of the City Attorney and City Staff that there is no pending litigation against the City that Would haven material adverse financial impact upon the City or its operations. Registration and Qualification of Bob for Sale The sale of the Bonds has not been registered under the Federal Securities Act of 1913, as amended, in reliance upon me exemption provided thereunder by Section 3(a) (2); and the Bands have not been qualified under the Securities Act of Texas in reliance upon various exemptions contained therein; nor have the Bonds been quablied under the securities acts of any jurisdiction, The City assumes no responsibility for qualification of the Bonds under the securities laws of any jurisdiction in which the Bonds may be sold, assigned, pledged, hypothecated or otherwise transferred, This disclaimer of responsibility for qualifi• cationfor sale or other disposition of the Bonds shall not be construed as an interpretation of any kind with regard to the availability of any exemption from securities registration provisions. Legal Investments andBBgibiily to Seuoe Ful Funds in Texas Section 9 of the Bond procedures Act provides that the Bonds "shall constitute negotiable instruments, and are investment securities governed by Chapter 8, Texas Uniform Commercial Code, notwithstanding any provisions of law or coast decision to the: contrary, and are legal and authorized investments for banks,. savings banks, trust companies, building and loan assodsoorts, savings and loan associations; Insurance companies, fiduciaries, and trustees, and for the sitting fund of cities,towns, villages, school the state, its agendas and political Subdivision, and are legal security for those 22• determine whether the Bonds described herein are eligible to secret public deposits, reference should be made tocwrentratings shown herein under Ratings fsee"Ratfngi Legal Opinions and NaLifigation Cethficate The City will furnish a complete transcript of proceedings had incident to the authorization and issuance of the Bonds,including the unqualified approving legal opinion of the Attorney General of Texas approving the Initial Bond and to the effect that the Bonds are valid and legally bindingapeaal obligations of the City, and based upon examination of such transcript of proceedings; the approving legal. opinion of Bond Counsel, to like effect and to the effect that the interest on the Bonds will be excludable from gross income for federal income tax purposes under Section IBB(a) of the Code, subject to the matters described under "Tax Exemption" herein, including they alternative minimum tax on corporations, The customary closing papers, including a certificate to the effect that no litigation of any nature has been filed or is then pending to restrain the issuance and delivery of the Bonds, or which would affect As provision made lurnished. Bond Counsel was not requested to participate, and cid not take part, in the preparation of the Notice of Sale and Bidding Instructions, the Official Bid Form and the Official Statement, and such firm has not assumed any responsibility with respect: thereto or undertakenindependently to verify any of the information contained therein, except that, amts rapacity as Bond Counsel, such firm has reviewed the: information describing the Bonds in the Official Statement to verify that such description conforms to the provisions of the Ordinance. The legal tee to be paid Bond Counsel for services rendered in connection with the issuance of the Bonds is contingent on the sale and delivery of the Bonds The: legal opinion will be printed on the Bonds: Authenticity of Financial Data and Other Information The financial data and other information contained herein have been obtained from the City's records, audited financial statements and other sources which are believed to be reliable. There isno 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 purportto be complete statements of such provisions and reference is made to such documents. for further information. Reference is made to original documents in all respects. Financial Advisor First Southwest Company is employed as financial Advisor to the City in connection with the issuance of the Bonds. The Finandal Advisors fee forzervsces rendered with respect to the sale: of the Bonds is contingent upon the issuance and delivery of the Bonds First Southwest Company may submit a bid for the Bonds either independently or as a member of a syndicate' organized to submit a bid lor the bonds. First Southwest Company, in its capacity: as Financial Advisor, has not vini ied and does not assume any responsibility for the information, covenants and representations'contained in any of thelbond documentation with respect to the federal income tax status of the Bonds, Certification of the Official Statement At the time of payment for and delivery of the Bonds, the:Purchassr Will befurnlshed a executed by proper officers, acting in their official capacity, to the affect that to the b knowledge and belief: (a) the descriptions and statempnta of nrnprttn nv fn the mev inn and its an untrue Sraaement of a material tact nr 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 miguadinp! (r) in0gr At ihp dpa.;mane nna est,Memt 41....;,1 a.&,_r........:.:.... statements and data have been obtained from sources which the City believes to be reliableand the City has no reason to believe that they are untrue in any material respect; and (d) there has been no material adverse change rn.the financial condition of the City since the date of the last audited financial The Ordinance -authorising: the issuance of the Bonds will also approve the form and content of this Official Statem int, and any addenda, supplement or amendment thereto, and authorise its further use in the reoffering of the Bo rdsby the Purchaser, W. H. CONNOR Mayor ATTEST: City of Georgetown, Texas. ELIZABETH GRAY City Secretary APPENDIX A GENERAL INFORMATION REGARDING THE CITY This City Location The City of Georgetown, with a 1980 census population of 9,468 and a currentestimated population of approximately 17,000 is located 28 miles north of Austin, Texas on Interstate Highway 35.: Georgetown is the county seat of Williamson County which borders: Travis County on the south and Bell County on the north, Economy Founded in 1948, Georgetown was originally an agricultural trade center for the county and the surrounding area In recent years the City has become more industrialized and commercially oriented wish some 290businesses being rated byDun and Bradstreet. Along with the commercial growth, Georgetown hassuccessfully promoted tourism in .the area which has become a significant economic benefit to the community. Industries in the immediate area include a large crushed stone operation, several electronic. manufacturers and agricultural related businesses, There are three .banks in Georgetown with combined deposits of on Major Employers in the Area Approximate Name of cbmpznvllndhstry ProductlService Number of Emoloyees Georgetown Independent School District Education 620 Williamson County County Government 380 Southwestern University .Education 308 Tesco Computer Components 300 Georgetown Hospital Hospital Famhty 250 City of Georgetown City Government 223 Airborne, Inc. Courier Service 170 Advanced Custom Molders Plastics 160 Wesleyan Nursing Homes Nursing Home Facility 133 Texas Crushed Stone. Limestone 130 Source: Georgetown Chamber of Commerce Labor: Market Profile The most recent civilian labor force estimates for the metropolitan statistical area of Georgetown and for the State of Texas are as followsn Georgetown State of Texas ;(September 1990) (Se temp ber..1990) Tose Civilian Labor Force. 7,678 8,490,700 Persons Employed 71333 7,965;100 :Persons Unemployed 345 525,600. Percent Unemployed 4:3% 6.2% Source,: Texas Employment Commission; Educational FaciEfies Georgetown Independent: School District serves the City and the surrounding area, having: a current enrollment of 4,986 students The District operates 5 elementary schools, one junior high school and one senior high school. IThere are also two private schools and one parochial school in the area; Southwestern University is located in the City and is the oldest institution of higher learning in Texas, being established in 1843, Present facilities of the University include some 33 buildings located on approximately 500 acres, approximately 10 blocks from Georgetowns central business district, The 1990-9I enrollment of Southwestern University is 1;239, Transportation Interstate Highway 33 ad State Highway 29intersect in Georgetown. Rall transportation includes the MKT Railroad and the Georgetown Railroad, The City also. operates an airport with: a paved and lighted runway of 4,100 feet, currently being considered for expansion. Recreation and Taaism The City operates an eighty acre park along the banks of the San Gabriel River inside the City limits, The park and the adjoining property contains playground and. picnic facilities, a community, center,: a high A.1 school football stadium, a highschool baseball field and numerous softball and little league baseball facilities The City also provides nine smaller neighborhood parks. There are three golf courses in Georgetown, two being country club operations and one being a nine hole courseoperated for the public by Southwestern University. Lake Georgetown, on the North San Gabriel River some three miles from the City offers State park facilities along with fishing andboating. Located on the southern borders of Georgetown is Inner Space Cavern, a popular tourist attraction for the area. These facilities, along with a historical distant and many special events, have boosted Georgetowois tourism traffic considerably over she last few years. Medical Services Georgetown Hospital,:a 66 bed full service medical facility and 30 active admitting physicians, provides obstetrical, surgical, diagnostic and emergency services to the local area The hospital is currently undergoing expansion: Williamson County Williamson County is located in Central Texas just north of the Austin metropolitan area and covers an area of 1,104 square miles, In 1989 the county contained i,lgI manufacturing and service. industries and produced goods and services valued at 989.6 million dollars, The total effettive buying power in 1989 was 1.3 billion dollars with a media of§26,)46 per household The county contains severalmedium size cities such se Round flock; Georgetown, Taylor and Cedar Park. The following tax and debt information with respect to the City of Georgetown, Texas has been included in the Appendix solely to provide a general description of the community served by the: Waterworks and Sewer System, The Bonds are special obligations of the Citypayable solely from the Pledged Revenues of the System and do not cormtibite an indebtedness to which she fall faith and credit or massmig power of the City will be pledged. Ad Valorem Tax Law within Board, consisting of: three: members appointed by the Board of Directors at the Appraisal District. The Appraisal District is required to review the value of property within the Appraisal District atdeast every three years. The City may require annual. review at its own expense, and is entitled to challenge :the determination of appraised value of property within the City by petition fired with the Appraisal Review Board. Reference is made to the VTCA, Property Tax Code, for identification of Property subject to taxation; property exempt or which may be exempted from taxation, if claimed, the appraisal of property for ad valorem taxation purposes, and the procedures and limitations applicable to the levy and collection of ad valorem taxes.. Article VIII of the State Constitution ("Article VIII°) and State law provide for certain exemptions from property taxes, the valuation of agricultural :and open -space lands at productivity value, and the exemption of certain personal property from ad valorem taxation. Under Section I -b, Article VIII, and State law, the governing body of a political subdivision, at itsoption, may grant: (1) An exemption of not less than $3,000 of the market value of me residence homestead of persons 65 years of age or older and the disabled from all ad valorem :taxes thereafter levied by the pohticel. subdivision; 12) An exemption of: up to 20% of the market value of residence homesteads;, minimum exemption $5,000. In the rise of residence homestead exemptions granted under Section Iib, Article VO, ad valorem taxes may continue to be levied against the value of homesteads exempted where ad valorem taxes have: previously been pledged for the payment of debt if cessation of the levy would impairthe obligation of the contract by which the: debt was created. A•2 State law and Section 2, Article VIII; mandate an additional property tax exemption fordeahled veterans or the surviving spouse or children of a deceased veteran who died while on active: duty in the armed forces, the exemption applies to either real of arsenal property, with the amount of assessed valuation exempted ranging from $1,500 to a maximum of�3,00C. Article VIII provides that eligible owners of both agricultural land (Section i -d) and open -space land (Section I-d-1),:including open -space land devoted to farm or ranch purposes or open -space land devoted to timber production,miay elect to have such property appraised for property taxation on the basis of its productive capacity; The same land may not be qualified under both Section 1=4 and W.I. Nonbusiness veMice$, such as actomomles or light trucks, are exempt from ad valorem taxation unless the governing bay of a political subdivision elects to tax this property. Boats owned as nonbusiness property are exempt from ad valorem taxation, Article YIN, Section 1-j of the Texas Constitution authorizing an ad valorem tax exemption for 'freepom property, was approved November 7, 1989, Freeport property is goods detained in Texas dor 115 days or less for the purpose of assembly, storage, manufacturing, processing or fabrication. The amendment provides that the exemption will be Effective for the 199091 fiscal year unless the City takes action to lax such property prior to January 1, 1990 And that the exemption will be effective lot all tutomtax years unless the City takes action prior to April I, 1990 but after January 1,199C. Decision to continue to tax may be reversed in the future; decisions to exempt freeportproperty are not subject to reversal, The City (has) Bias not) taken action to tax Freeport property in the MM991 fiscal year and is studying the issue with respect to subsequent years, The Williamson County Appresal District estimated me value of troopers property at $ which generates approximately$ in taxes at current rates. .. The City, grants an exemption to the market value of the residence homestead of persons 65 years of age or older of $12,000; she disabled are framed an exemption of $3,000; and ad valorem taxes are not hovied by the City against the exempt value of residence homesteads for the payment of debt. The City does not tax nonbusiness vehicles; and Georgetown Independent School District collects taxes for the City of Georgetown. A•3 Valuation, Exemptions and Debt Obligations 1990 Market Valuation Established by Williamson County Appraisal District Less EzemptionsiRedu;tions at 100% Market Value: Residence Homestead Exemptions. Disabled Veterans Exemptions Open2SpaceLand Use Reductions 1990 Taxable Assessed Valuation City Funded Debt Payable From Ad valorem Taxes Ili: General Obligation Bonds (as of 1630.90) Funded Debt Payable From Ad Valorem Taxes: Less Self Debt: Utility System General Obligation Debt. General Purpose Funded Debt Payable From Ad Valorem Taxes Interest and Sinking Fund (as of 12.1-9G) Ratio Funded Debt to Taxable Assessed Valuation ---------- 903 $22,461,258 269;500 9.1829. 31,983 387. $3831993316 4 045000 g 4,oas;000 LEE 1990 Estimated Population •17,908 Per Capita Taxable Assessed Valuation - $21,442,0 Per Capita funded Debt - $225:88 $ .370,000 $ 3;wj0o0 $: 142,449 1.05% TIT The above statement of ndertedness does not include the following revenue bonds, as these bonds are payable solely from the net revenues of the System as defined in the bond ordinance authorizing the. bonds: $10,375,000Utility System Revenue Bonds;$2;300,000 Utility System Revenue Bonds 'offeted for sale by this Official Statement A-4 Taxable Assessed Valwliay by Category N mNMnN*Nwo rNPPNNYNNPNN NP Y. WaN4 NDN Ow ONw L mP N4id NNn NaNn Pn �nNw1.NNen P4» EaM"M*Neom� o PO NNN K� NNmW N j4aao�onwMOPhm nw a- N^aN n0�0%43PaSP Nm jPnPPNm NPP MOPw PM1 ' anW PO Y�pPPN-CPN WP Ea nnwmmmam mw�P PP �Naam %m"NNN N:�N .m ryN.. w.N � nm v c r C 0 9 d n q L 6 ��w*P0 N0 Na00 An M1a.om M1w 090 FNv�nm0o5N n�000 n 0 W 0 w N nNdNm.i Pm n Yry NKnN OK��omaam Pm �, unM1 Not iO SOaiN 30 �oj }Nanm mno�d w WO CP En�aw °n Pdd e� "0 u.0 a NNr1•n I%.+iia Om N Y Y CM OA 6!' wL 0'� nPPN imNw w'la kn PM1+O ON OPDOW 3: ��C�YO INPN NiO nm � nmaP90w n Pn e now mo.d a N. f arca Pnn.N n ma �+wP-+Na P.Ptl Y46n N,n n Na. A -S N Valuation and Funded Debt History (1) In process of: collection. Property within the City is accessed as of. January I of each year (except for business inventory which may, at the option of thetarpayer, be assessed as of September:)); taxes become due October I of the same year, and become' delinquent on February Iof the following yew. Split payments are not permitted. Taxpayers 65 years old or older are permitted by Stale law to pay taxes on homesteads in IOU installments with the first due on February I of each year and the final installment. due on August 1. Charges for penalty and interest on the unpaid balance of delinquent taxes are made asfollowx Month LEL interest. Total Ratio Funded 6% Fiscal ]% Taxable Funded Debt Debt to 9% Year 8% Taxable Assessed Outstanding Taxable Funded Ended Estimated Assessed Valuation at End Assessed Debt 930 1982 Po u. p lotion Valuation Per Ca its 7 85,043,953 7,963 of Year T 735,000. Valuation Per Ca ria 68.71 10,697 0.96% 1983 11;438 148,787,833(1) 12;985 11705;000 1115% 148.80 1984 14376 1731791910(2) 14;204 31404;000 1.94% 175.05 1985 13,311 179,4661113 13y282 91733,000 1;08% 276;44. 1986 13;456 358,8681311 26;670 31081,000 1.0 377;60 1987 131933 406,8961149 :25,505 4870,000 130% 305.27 1988 16;929 4411614;49 26;086 4;6201900 1.03% 272;90 1989 17;317 451,623,139 23,782 4,35010Cd 066% 2(8133 1990 17,908 392,047,803 21,892 4443;000 .1103% 225.88 1991 17;950 383,9951316 21,392 3,690,000 096% 203.57 1 Revaluation of properties, (2) City granted $9,060 homestead exemption to over 65 property owners. Tax Rate, Levy and Collection History Fiscal Year Distribution Ended Tax General Interest and %Current %Total 1982 1992 R7 0,30 F Sm4in Fund 0.43000 0,9600 Tax 425e02 423,-023 Collections 95.80% Collections 101,82% 1983 0,28 0.24000 0.04000 4481456 88.56% 100:21% 1984 0,40 033000 007000 620;022 86.91%: 101.67% 1985 0,43 038000 0115000 7681971 92,23% 94.40% 1986 0,28 0;19000 0.09000 :1;004;832 95.39% 96,72%'. 1987 0,34 0,21000 0,13000 1,388,107 92194% 96,47% 1988 0.37 0,25000 0.000 1,6!7;943 92,7% 96;46% 1989 0.37 0;27000 01;0000 1,6546619 9330% IN169% 1990 0.37 a.27000 0130000 11435;909 90%, 99.31% 1991 039. 0;23704 D.13296 114971582 (1) In process of: collection. Property within the City is accessed as of. January I of each year (except for business inventory which may, at the option of thetarpayer, be assessed as of September:)); taxes become due October I of the same year, and become' delinquent on February Iof the following yew. Split payments are not permitted. Taxpayers 65 years old or older are permitted by Stale law to pay taxes on homesteads in IOU installments with the first due on February I of each year and the final installment. due on August 1. Charges for penalty and interest on the unpaid balance of delinquent taxes are made asfollowx Month LEL interest. Total :February 6% 1% ]% March 7% 2% 9% April 8% 3% 11% May 9% 4% 13% June. 10% 3% 15% July 12% 6% 18% AfterJuly, penalty remains at 12%, and interest increases at the rate of 1% each month. In addition, if an account is deGnquem in July, a 15% attorney's collection fee is added to the total .tax penalty and interest charge, A•6 Ten Largest Taxpayers 19 %of Total Taxable Taxable Assessed Assessed. Name of Taxpayer Nature of Property Valuation Valuation General Telephone Company Utility ..9,315,802 2,43% FDIC Development Property 61198,310 2,29% H. E. Butt Grocery Retail Property 3;6161086 .1,46% Wal-Mart Stores, inc, Retail Property 5,3171992 1,79% SummeyBuilding $ystems Industrial Property 3,224,369 9184% Republic Square. Joint Venture Commercial Shopping Center 2JA7 400 0172% Citizens State Bank Commercial Bank 211461108 0.71% Certified Federal Savings Commercial Bank 2,6901263 0.70% Bluebonnet Savings Bank FSB Commercial Bank 2160917% 1.68% Georgetown Park Apartments Residential 2 340 071 0,61% 45,43);321 11.83% Tax Rate Limitation All taxable property within the City is subject to the assessment,levy and collection by 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 bylaw. Article %I, Section 5,of the Texas Constitution is applicable to the City, and limits its maximum ad valorem tax rate to $2.50 per $100 Assessed Valuation for all City purposes The Home Rule Charter of the City limits its tax rate to $2.30 per $I00 Assessed Valuation for all City purposes,. By each September for as soon thereafter as practicable, the City Council adopts tax tate per $100 taxable value focthe current year. The tax rare consists of two camponents: (1) a rate for funding of maintenance and operation expenditures, and (2) a rate for debt service; Under the Tax Codei The City must annually :Calm,lauHepoliclieit, effective: tax rate' and rollback tax rate". The City Council may not adopt a tax rate that exceeds the lower of the rollback fax rate or 103% of the effective tax rate until it has held apublic hearing on the proposed increase following notice to the taxpayers and otherwise complied with the Tax Code of the adopted tax rate exceeds the rollback tax rate the qualified voters of the City by petition may require that an election be held to determine whether or not to reduce the tax rate adopted for the current year to the rollback tax rate, "Effective tax rate" means the rate that will produce last year's total fax levy (adjusted) from this year's total taxable values (adjusted) 'Adlusted"means lost values are not included in be calculation of last year's taxes and new values are not included in this year's taxable values: "Rollback tax rate" means the rare that will produce last year's maintenance and operation tax levy (adjusted) from this yast'svalues (adjusted) multiplied by 1.08plus a rate that Vll produce this year's debt. service from this yea"' values hu adlusied) divided by the anticipated tax collection rate.. The Tax Code provides that certain cities and counLes in the State may submit aproposition to the voters to authorize an additional one-half cent sales taxon retail sales of taxable items. If the additional taxis levied, the effective fax rate and the rollback tax rate calculations are required tube offset by the revenue that will be generated by the sales tax in the current. year, The City does not, collect, the additional one-half cent sales tax. Reference is made to the Tax Code for definitive. requirements for the Ivy and collection of ad valorem taxes and the calculation of the various defined tax rates. A•7 Assessed Valuations, Tax Rates; Outstanding Debt and Authorized But Unissued Bonds of Overlapping TaxingJurisdiectioos 1996 Outstanding Authorized: Taxable 1990 Tax Supported But Unissued Assessed Tax Debi As Debt As Taxing Jurisdiction Valuation Rate Georgetown; City of Georgetown independent School District Williamson County Source: "Texas Municipal Reports"published by the Municipal Advisory Council of Texas. Estimated Direct and Overlapping Forded Debt payable From Ad Valorem Taxes (As of 11930.901 Expenditures of the various taxing bodies within the territory of the :City are paid out of ad valorem taxes levied by there taxing bodies on properties within the City, These politica, taxing bodies are independent of the City and may incur borrowings to lfnance their expenditures, The following statement of direct and estimated overlapping ad valorem tax bonds was developed from information contained in "Texas Municipal Reports^. published by the Moricipsl Advisory Council of Texas. Except for the amounts relating to the City, .the City has not independently verified the accuracy or: completeness of such information, and no preen should rely upon such information as being accurate or complete,.. Further. more, certain of the entities listed below may have issued additional bonds since the date stated in the table, and such entities may have programsrequinng the issuance of substantial amounts of additional bonds the amount of which cannot bedetermioed. The following table reflects the estimated share of overlapping funded debt of hese various taxing bodies, Per CapitsOverlapping Funded Debi --------- .... ...... ...............___..»..... $858.62 hiterestand SinldngFmd Budget Projection Estimated General Purpose Debt Service Reda ements,. Fiscal Year Ending 9.30.90 ........................... S729,604: Interest no Sinking Fund, 9-30-90 - $101,080 1991 Interest and Sinking Fund Tax Levy @90%Collection ..... •....... Si59;5o4 Budgeted Transfers (Utility .... .• ....:.:....._. 210,150': Estimated Investmentlncome- 71600 Delinquent Tax Collections --.-• ........................................ 3o,00a 808334. Estimated Balance, 930.91 - .... ........... ............ ........... ..__...... ... .$.78,730 7Focpayment of the 1982 Series Certificates of Obligation issued for utility improvements. A-8 Estimated Total % Overlapping Taxing Jurisdiction Funded A hcable Funded Debt Georgetown, City of 3,952,767 IOLpOW 3;932,767 Williamson County 16;0361157 8.90% 1,127;218 Georgetown Independent SchodlDistrict 18,175,000 55.00% 9�996j2$0 Total Direct and Overlapping Funded Debt $151376,235 Ratio of Direct and Overlapping Funded Debt to Taxable Assessed Valuation--- ................................................ sH%' Per CapitsOverlapping Funded Debi --------- .... ...... ...............___..»..... $858.62 hiterestand SinldngFmd Budget Projection Estimated General Purpose Debt Service Reda ements,. Fiscal Year Ending 9.30.90 ........................... S729,604: Interest no Sinking Fund, 9-30-90 - $101,080 1991 Interest and Sinking Fund Tax Levy @90%Collection ..... •....... Si59;5o4 Budgeted Transfers (Utility .... .• ....:.:....._. 210,150': Estimated Investmentlncome- 71600 Delinquent Tax Collections --.-• ........................................ 3o,00a 808334. Estimated Balance, 930.91 - .... ........... ............ ........... ..__...... ... .$.78,730 7Focpayment of the 1982 Series Certificates of Obligation issued for utility improvements. A-8 Computation of Self-Suppor li Debt Net Revenue from the Utility System, Fiscal Year Ended 1990 ... -----•-.............. $3,781,365 Less: Revenue Bond Requirements, 091 Fiscal Year ................ ....::.:. 346,y�4 Balance Available for Other Purposes ...... ......... ..............._....._...... $704;661 System General Obligation Bond Requirements, 091 Fiscal Year..:........... 31➢;150 Balance... .......... :....... .................... ......,...... $212241SII Percentage of System General Obligation Bonds Self-Supporting....... ......... 100% Authorized But Unissued General Obligation Bonds -:None Anticipated Issti>one of General Obligation Bonds The City currently has no plans for issuing General Obligation Bonds during the next IS months. Funded Debt Gmitation ,No direct funded debt limitation is imposed on the City under current State la%or the City's Home Rule. Charter. Article A Section S, of the Texas .Constitution is: applicable to the:Cdy, and limit .its maximum ad valoort carioca to $2.30 per'$100 assessed valuaaionfor all Citypurposes. The Home Rule Charter of the City limits Its tax rate to $2,50 per $100 Assessed Yaharcon for all Citypurposes. Other. Obligations The City has no unfunded debt outstanding as of , (or) Describe any that is outstanding. Penedos Fund The City provides pension benefits to eligible employees through a defined coniributionplan In the state-wide Texas Municipal Retirement System ("TMBS"). The Plan provisions are adopted by the governing body of the City within the options available in the State statutes governing TMRSand within the actuarial constraints also contained in the statutes; Options offered under TMRS which have been adopted by the City include current and updated service credits, ten year vesting, and supplemental disability and death benelits All permanent, lull -time City employees who were less than 5f years of age when employed are covered by TMRS. By City ordinance, the required contribution rale for covered employees is currently 3%. Participants can retire at age 60 with 10 years of service, at age 30 with 25 years of service or at any age with 28 years of service; The pension benefit: obligation is shown below, This pension benefit obligation was calculated as part of the annual actuarial valuation as of December 31, 198F The information below relates to the city's employees. Pension Benefit obligation Annuitants currently receiving benefits $ 273;645 Terminated employees not yet receiving benefits 325,360 Current employees, Accumulated employee contributions including allocated invested earnings 857,64; Bmployer-hram ed vested 358.801 Employer financed ransomed V 092 Total pension benefit obligation 1,389,445 Net assets available for: benefits, at book: value pl, 31.;9y0 Unfunded pension benefit obligation47] 525 The City's total payroll for the year ended September 30, 190 was $3,493,191 and the City$ contributions Wert based on a payroll of $3p4101086. Both the City and the covered employees made the required contributions, amounting to $1131036 (4,70% of covered payroll for the months m calendar year 1989 and 5,19%for the months in calendar year 1990) for the City and $170,506:17%) for the employees. The Cityadopted changes in the Plan since the previous actuarial valuation which had the effect of increasing the City's contribution rate for 1990 by: .01%of payroll A•9 General Fund Revenues and Expenditure Blistery Excess (deiitieocy) of Revenues Over Expenditures $:(952,119). For Fiscal Year Ended. September 30 $(1110373301 Budgeted Traneterstn 090 1989' 1988 1987 1986 Revenues (71 785) (44 500) —" (45 346) TO (237 435) Taxes $2,423,868'$2,348,711 889,0.0 $2,379,916 $1,936,634.$I;675,394 874,014 Licersesand Permits 40;053 73,715 40,869 19;273. 209,038 - Charges for Services :135,151 166;589 100,910 42,257 71;350 Fines and Forfeitures '.110,443 1281619 118,942 14,843 1231301 Total RevenusandlMeiesY Total Revenues 156,983 2 866 SGOSGO 148;919 3 tl6�_,6 98,628 289,953... 128 384 Ending Fund Balance 1 136 266 SS3 173'9165 2 488 9L62 2 2�O16fi1 Ex entlitures General Government $ 783,112:.$ Wr819 $ 371,035 $. 475,816': $ 6991032. Public Safety 211081653 1,943,683 1,5631585 1,479,850 11002;582. Community3eivice 798;869 917,032 8171717 78x,807 809;117 Planning Total Ex odltures Total Expenditures 1♦ 1217&3. 38619 222,)72 '. 7 541 3C63C6 314,272 3 172 609' 421,427 7 111900 499,686 3 311 017 Excess (deiitieocy) of Revenues Over Expenditures $:(952,119). $:(474;153) $ (3935344{ $ 628,938: $(1110373301 Budgeted Traneterstn $ 933;993 $ 9331510 $ 7751102. $626,491 $Ix131i449 Budgeted Transfers (Out) Total Transfers (71 785) (44 500) (177 393) (45 346) TO (237 435) 864,208' 889,0.0 597;7C9 874,014 Not Increase (Decrease) $ (87,9111 $ 414.237 $ 204,365 $ (47,993) $`(229;336) Other tdiscel2aneous Adjustmentx (149)383) beginning Fund Balance12,24;1)7 8_999_2G 6GSs3S3 . 6,53,548.:1021267 Ending Fund Balance 1 136 266 1224177 L 809 92E LELSSS L653448 *13 month perioddue to change in fiscal year. A-10 Mcipal Sales Tax History The: City: has adapted the,Munimpal Sales and Use Sax Act, VATCS, Tax Code,Chapter 311, 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 Central fund and are not pledged to the payment of the Bonds. Collectionsand enforcements are effected through the offices of the Comptroller: of Public Accounts;: State of Texas, who remits the proceeds of the tax, alter deduction of a 2% service fee, to the City monthly, Revenue from this source, for the years shown, has heen: Fiscal 4I %of Equivalent of Ended Total Ad Valorem Ad Valorem Per 9,30 Collected Tax Levy Tax Rate CWa* 1981 448,222 105,46% $1,0079 4V,98 1982 470,927 110;86% 0,5538 44111. D83 301;220 11137% 013369 4334 1984 733,604 118132% 0;4113 59,28 1985 9181665 119AN 0.5119 :67,99 1986 847,980 110.Y% 0;2363 63.02 1987 728,495 52.48%. 0,1790 95;61 1988 762,167 47.11%. 0.1726 45A2 1989 804;945 48;63% 0.1782 45.95 1940 922;231 64:23% 0.2352 31.50 '-Based on estimated population for all years,: A - II APPENDIX 8 EXCERPTS FROM THE CITY OF OEORCETOWNiTEXAS ANNUAL FINANCIAL REPORT For the Year Ended September 3011990 The information contained in this Appendix consists of excerpts from the City of Georgetown Annual Financial Report lot the Year Ended September fo,1990, 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 FORK OF 500 COUNSEL'S OPINION