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R-81-403 - 8/13/19814 /e- RESOLUTION WHEREAS, the City Council of the City of Round Rock, Texas desires to receive bids for the purchase of its $820,000 General Obligation Bonds, Series 1981 -C; and WHEREAS, First Southwest Company, Dallas, Texas, has been authorized and requested to prepare a Notice of Sale and Bidding Instructions, Offi- cial Bid Form and Official Statement containing financial, economic and other data necessary and desirable to attract bids for said bonds; NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF ROUND ROCK, TEXAS: That the attached Notice of Sale and Bidding Instructions, Official Bid Form and Official Statement relative to $820,000 City of Round Rock, Texas General Obligation Bonds, Series 1981 -C, 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 bonds. PASSED AND APPROVED this the 13th day of August, 1981, by the City Council of the City of Round Rock, Texas, convened in /LplJ, q� session with a lawful quorum present. jj// ATTEST: City Secretary / Mayor CITY OF ROUND ROC/(, TEXAS (WILLIAMSON COUNTY) $820,000 GENERAL 081/GAT /ON BONDS, SERIES 1981 -C SELLING 410ND4Y, AUGUST 31, 1981, AT 7 :00 NI, CDT THE SALE Bonds Offered for Sale at Competitive Bidding ... The City of Round Rock, Texas (the "City "), is offering for sale its $820,000 General Obligation Bonds, Series 1981 -C (the "Bonds "). Address of Bids ... Sealed bids, plainly marked "Bid for Bonds ", should be addressed and delivered to "Mayor and City Council, City of Round Rock, Texas ", prior to 7:00 PM, CDT, on the date of the bid opening. All bids must be submitted on the Official Bid Form, without alteration or interlineation. Place and Time of Bid Opening . The City will open and publicly read the bids for the purchase of the Bonds at the City Hall Chambers, 214 East Main, Round Rock, Texas, at 7:00 PM, CDT, Monday, August 31, 1981. Award of the Bonds ... The City Council will take action to award the Bonds (or reject all bids) promptly after the opening of bids, and adopt an Ordinance authorizing the Bonds (the "Ordi- nance") and approving the Official Statement. THE BONDS Description ... The Bonds will be dated October 1, 1981, and interest coupons will be due on February 1, 1983, and each August 1 and February 1 thereafter until the earlier of maturity or prior redemption. The Bonds and interest coupons attached thereto will be payable at the Farmers State Bank, Round Rock, Texas, or, at the option of the holder, at First City Bank of Dallas, Dallas, Texas. The Bonds will mature serially on August 1 in each year as follows: Principal Year Amount 0,000 1985 25,000 1986 25,000 1987 25,000 1988 25,000 NOTICE OF SALE AND BIDDING INSTRUCTIONS ON $820,000 CITY OF ROUND ROCK, TEXAS (Williamson County) GENERAL OBLIGATION BONDS, SERIES 1981 -C Selling Monday, August 31, 1981, at 7:00 PM, CDT Principal Year Amount 3989 S. 50,000 1990 50,000 1991 50,000 1992 50,000 1993 50,000 1994 50,000 Principal Year Amount 1995 $ 50,000 1996 50,000 1997 75,000 1998 75,000 1999 150,000 The City reserves the right, at its option, to redeem . Bonds maturing August 1, 1997, through August 1, 1999, both inclusive, in whole or any part thereof, on August 1, 1996, or any interest payment date thereafter, at the par value thereof plus accrued interest to the date fixed for redemption. Source of Payment ... The Bonds are direct and voted general obligations payable out of the receipts from an ad valorem tax levied, within the limits prescribed by law, on taxable property located within the City. CONDITIONS OF THE SALE Types of Bids and Interest Rates ... The Bonds will be sold in one block on an All or None" basis, and at a price of not less than their par value plus accrued interest to the date of delivery of the Bonds. Bidders are invited to name the rate(s) of interest to be borne by the Bonds, provided that each rate bid must be in a multiple of 1/8 of 15 or 1/20 of 1% and the effective interest rate must not exceed 15 %. The highest coupon rate bid may not exceed the lowest coupon rate bid by more than 2 1/28 in coupon rate. No limitation is imposed upon bidders as to the number of rates or coupon changes which may be used. All Bonds of one maturity must bear one and the same rate. No bids involving supplemental coupons will be considered. Each bidder shall state in his bid the total interest cost in dollars and the net effective interest rate determined thereby, which shall be considered informative only and not as a part of the bid. Basis for Award . For the purpose of awarding the sale of the Bonds, the interest cost of each bid will be computed by determining, at the rate or rates specified therein, the total dollar cost of all interest on the Bonds from the date thereof to their respective maturities, using the table of Bond Years herein, and deducting therefrom the premium bid, if any. Subject to the City's right to reject any or all bids and to waive any irregularities except time of filing, the Bonds will be awarded to the bidder (the "Purchaser ") whose bid based on the above computation produces the lowest net effective interest cost to the City. Good Faith Be posit ... A Good Faith Deposit, payable to the "City of Round Rock, Texas" in the amount o , 00.00, is required. Such Good Faith Deposit shall be in the form of a Cashier's Check, or its equivalent, which is to be retained uncashed by the City pending the Purchaser's compliance with the terms of his bid and the Notice of Sale and Bidding Instructions. The Good Faith Deposit may accompany the Official Bid Form or it may be submitted separately. If submitted separately, it shall be made available to the City prior to the opening of the bids, and shall be accompanied by instructions from the bank on which drawn which authorize its use as a Good Faith Deposit by the Purchaser who shall be named in such instructions. The Good Faith Deposit of the Purchaser will be applied on the purchase price on the date of delivery of the Bonds. No interest will be allowed on the Good Faith Deposit. In the event the Purchaser should fail or refuse to take up and pay for the Bonds in accordance with his bid, then said check shall be cashed and accepted by the City as full and complete liquidated damages. The checks accompanying bids other than the winning bid will be returned immediately after the bids are opened, and an award of the Bonds has been made. DELIVERY OF THE BONDS AND ACCOMPANYING DOCUMENTS Printed Bonds ... The City will furnish printed Bonds which will be executed by the facsimile signatures of the Mayor and Secretary of the City, and by the manual signature of. the Comp- troller of Public Accounts of the State of Texas. The Bonds will be in coupon form without privilege of registration as to principal or interest. CUSIP Numbers ... It is anticipated that CUSIP identification numbers will be printed on the Bonds, but neither the failure to print such number on 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 Bonds in accordance with the terms of this Notice of Sale and the terms of the Official Bid Form. All expenses in relation to the printing of CUSIP numbers on the Bonds shall be paid by the City; provided, however, that the CUSIP Service Bureau charge for the assignment of the numbers shall be the responsibility of and shall be paid for by the Purchaser. Delivery ... The Bonds will be tendered for delivery to the Purchaser at any bank in Austin, Texas, at the expense of the City. Payment for the Bonds must be made in immediately available funds for unconditional credit to the City, or as otherwise directed by the City. The Purchaser will be given six business days' notice of the time fixed for delivery of the Bonds. It is anticipated that delivery can be made on or about October 13, 1981, and it is understood and agreed that the Purchaser will accept delivery and make payment for the Bonds by 10:00 AM, CDT, on October 13, 1981, or thereafter on the date the Bonds are tendered for delivery, up to and including October 26, 1981. If for any reason the City is unable to make delivery on or before October 26, 1981, then the City shall immediately contact the Purchaser and offer to allow the Purchaser to extend his offer for an additional thirty days. If --6he Purchaser does not e1'ect to extend his offer within six days thereafter, then his Good Faith Deposit will be returned, and both the City and the Purchaser shall be relieved of any further obligation. In no event shall the City be liable for any damages by reason of its failure to 'deliver the Bonds, provided such failure is due to circumstances beyond the City's reasonable control. Conditions to Delivery ... The obligation of the Purchaser to take up and pay for the Bonds is subject to the Purchaser's receipt of (a) the legal opinion of Messrs. McCall, Parkhurst & Horton, Dallas, Texas, Bond Counsel for the City ( "Bond Counsel "), (b) the no- litigation certificate, and (c) the certification as to the Official Statement, all as further described in the Official Statement, Legal Opinions ... The Bonds are offered when, as and if issued, subject to the unqualified legal opinion of the Attorney General of the State of Texas, and Messrs. McCall, Parkhurst & Horton (see Legal Opinions in Official Statement); the opinion of said firm will be printed on - Lhe Bonds. — Certification of Official Statement ... At the time of payment for and delivery of the Bonds, the City will execute and deliver to the Purchaser a certificate in the form set forth in the Official Statement. BOND YEARS Accumulated Year Amount Bond Years Bond Years Year 1984 $ 20,000 56.666 56.666 1984 1985 25,000 95.833 152.499 1985 1986 25,000 120.833 273.332 1986 1987 25,000 145.833 419.165 1987 1988 25,000 170.833 589.998 1988 1989 50,000 391.666 981.664 1989 1990 50,000 441.666 1,423.330 1990 1991 50,000 491.666 1,914.996 1991 1992 50,000 541.666 2,456.662 1992 1993 50,000 591.666 3,048.328 1993 1994 50,000 641.666 3,689.994 1994 1995 50,000 691.666 4,381.660 1995 1996 50,000 741.666 5,123.326 - 1996 1997 75,000 1,187.499 6,310.825 1997 1998 75,000 1,262.499 7,573.324 1998 1999 150,000 2,674.999 10,248.323 1999 Average Maturity 12.498 Years - iv - Change in Tax Exempt Status . At any time before the Bonds are tendered for delivery, the Purchaser may withdraw his bid if the interest received by private holders from bonds of the same type and character shall be declared to be taxable income under present Federal income tax laws, either by ruling of the Internal Revenue Service or by a decision of any Federal court, or shall be declared taxable or be required to be taken into account in computing any Federal income taxes, by the terms of any Federal income tax law enacted subsequent to the date of this Notice of Sale and Bidding Instructions. GENERAL Financial Advisor's Right to Bid First Southwest Company, the City's Financial Advisor, reserves the right to bid on the Bonds. Blue Sky Laws ... By submission of his bid, the Purchaser represents that the sale of the Bonds in states other than Texas will be made only pursuant to exemptions from registration or, where necessary, the Purchaser will register the Bonds in accordance with the securities law of the states in which the Bonds are offered or sold. The City agrees to cooperate with the Purchaser, at the Purchaser's written request and expense, in registering the Bonds or obtaining an exemption from registration in any state where such action is necessary. Not an Offer to Sell ... This Notice of Sale does not alone constitute an offer to sell the Bonds, but is merely notice of the sale of the Bonds. The offer to sell the Bonds is being made by means of the Notice of Sale and Bidding Instructions, the Official Bid Form and the Official Statement. Prospective purchasers are urged to carefully examine the Official Statement to determine the investment quality of the Bonds. Issuance of Additional Bonds ... The City does not have any plans to issue the remaining 12,010,000 authorized generaT obligation bonds at this time. Ratings ... The outstanding General Obligation Bonds of the City are rated "Baa 1" by Moody's Investors Service, Inc. and "BBB +" by Standard & Poor's Corporation. Applications for contract ratings on this issue have been made to both Moody's and Standard & Poor's. The results of their determinations will be provided as soon as possible. The Official Statement .. The City will furnish to the Purchaser, without cost, 25 copies of the Official Statement (and 25 copies of any addenda, supplement or amendment thereto), com- plete except as to interest rates and other terms relating to the reoffering of the Bonds. The Purchaser may arrange at his own expense to have the Official Statement reproduced and printed if he requires more than 25 copies, and may also arrange, at his total expense and responsi- bility, for completion and perfection of the first or cover page of the Official Statement so as to reflect interest rates and other terms and information related to the reoffering of the Bonds. The City assumes no responsibility or obligation for the distribution or delivery of any of these copies to any one other than the Purchaser. Additional Copies of Notice, Bid Form and Statement ... A limited number of additional copies of this Notice of Sale and Bidding Instructions, the Official Bid Form and the Official Statement, as available over and above the normal mailing, may be obtained at the offices of First Southwest Company, Investment Bankers, 900 Mercantile Bank Building, Dallas, Texas 75201, Financial Advisor to the City. The City reserves the right to reject any and all bids and to waive irregularities, except time of filing. The City Council, by resolution adopted this 13th day of August, 1981, approved the farm and content of the Notice of Sale and Bidding Instructions, the Official Bid Form and Official Statement, and has authorized the use thereof in its initial offering of the Bonds. On the date of the sale, the City Council will, in the Ordinance authorizing the issuance of the Bonds, reconfirm its approval of the form and content of the Official Statement, and any addenda, supplement or amendment thereto, and authorize its further use in the reoffering of the Bonds by the Purchaser. ATTEST: JOANNE LAND City Secretary August 13, 1981 LARRY L. TONN Mayor OFFICIAL BID FORM Honorable Mayor and City Council City of Round Rock Round Rock, Texas Members of the Council: Reference is made to your Official Statement and Notice of Sale and Bidding Instructions, dated August 13, 1981, of $820,000 CITY OF ROUND ROCK, TEXAS GENERAL OBLIGATION BONDS, SERIES 1981 -C, both of which constitute a part hereof. For your legally issued Bonds, as described in said Notice of Sale and Bidding Instructions and Official Statement, we will pay you par and accrued interest from date of issue to date of delivery to us, plus a cash premium of $ for Bonds maturing and bearing interest as follows: Interest Interest Interest Maturity Rate Maturity Rate Maturit/ Rate 8 -1 -1984 % 8 -1 -1989 % 8 -1 -1995 % 8 -1 -1985 % 8 -1 -1990 % 8 -1 -1996 % 8 -1 -1986 % 8 -1 -1991 % 8 -1 -1997 % 8 -1 -1987 % 8 -1 -1992 % 8 -1 -1998 % 8 -1 -1988 % 8 -1 -1993 % 8 -1 -1999 % 8 -1 -1994 % Our calculation (which is not a part of this bid) of the interest cost from the above is: Total Interest Cost $ Less Premium NET INTEREST COST $ EFFECTIVE INTEREST RATE % Check of the Bank, , in the amount of $16,400.00, which represents our Good Faith Deposit (is attached hereto) or (has been made available to you prior to the opening of this bid), and is submitted in accordance with the terms as set forth in the Official Statement and Notice of Sale and Bidding Instructions. We agree to accept delivery of and make payment for the Bonds at Bank, Austin, Texas, not later than 10:00 AM, CDT, on October 13, 1981, or thereafter on the date the Bonds are tendered for delivery, pursuant to the terms set forth in the Notice of Sale and Bidding Instructions. Respectfully submitted, ATTEST: City Secretary By ACCEPTANCE CLAUSE The above and foregoing bid is hereby in all things accepted by the City of Round Rock, Texas, this the 31st day of August, 1981. ........ Return of Good Faith Deposit is hereby acknowledged: By Authorized Representative Mayor August 31, 1981 OFFICIAL BID FORM Honorable Mayor and City Council City of Round Rock Round Rock, Texas Members of the Council: Reference is made to your Official Statement and Notice of Sale and Bidding Instructions, dated August 13, 1981, of $820,000 CITY OF ROUND ROCK, TEXAS GENERAL OBLIGATION BONDS, SERIES 1981 -C, both of which constitute a part hereof. For your legally issued Bonds, as described in said Notice of Sale and Bidding Instructions and Official Statement, we will pay you par and accrued interest from date of issue to date of delivery to us, plus a cash premium of $ for Bonds maturing and bearing interest as follows: Interest Interest Interest Maturity Rate Maturity Rate Maturity Rate 8 -1 -1984 % 8 -1 -1989 % 8 -1 -1995 % 8 -1 -1985 % 8 -1 -1990 % 8 -1 -1996 % 8 -1 -1986 % 8 -1 -1991 % 8 -1 -1997 % 8 -1 -1987 % 8 -1 -1992 % 8 -1 -1998 % 8 -1 -1988 % 8 -1 -1993 % 8 -1 -1999 % 8 -1 -1994 % Our calculation (which is not a part of this bid) of the interest cost from the above is: Total Interest Cost Less Premium NET INTEREST COST EFFECTIVE INTEREST RATE Check of the Bank, , in the amount of $16,400.00, which represents our Good Faith Deposit (is attached hereto) or (has been made available to you prior to the opening of this bid), and is submitted in accordance with the terms as set forth in the Official Statement and Notice of Sale and Bidding Instructions. We agree to accept delivery of and make payment for the Bonds at Bank, Austin, Texas, not later than 10:00 AM, CDT, on October 13, 1981, or thereafter on the date the Bonds are tendered for delivery, pursuant to the terms set forth in the Notice of Sale and Bidding Instructions. Respectfully submitted, By ACCEPTANCE CLAUSE The above and foregoing bid is hereby in all things accepted by the City of Round Rock, Texas, this the 31st day of August, 1981. ATTEST: City Secretary ........ Return of Good Faith Deposit is hereby acknowledged: By Authorized Representative Mayor August 31, 1981 jurisdiction to any person to whom it is other person has been authorized to its Official Statement does not constitute an off to sell sands in any rosencontan contained not be relied upon. The the lawful to make such offer in such jurisdiction. No dealer, salesman, or any eve any information or make ven or made,esuchainformation or a rep those tattainmu herein, in connection with the of a f these Bonds, and if g create neither implication that there has been no le made hereunder shall, under any circumstances nd expressions osa pinion herein are subject date hereofe without notice and neither the delivery of this Officio statemeit nor any :hange in the affairs of the city since tO FFICIAL STATEMENT Dated August 13, 1981 INTEREST EXEMPT, IN THE OPINION OF BOND COUNSEL, FROM PRESENT FEDERAL INCOME TAXES UNDER EXISTING STATUTES, REGULATIONS, RULINGS AND COURT DECISIONS 5820,000 CITY OF ROUND ROCK, TEXAS (Williamson County) GENERAL OBLIGATION BONDS, SERIES 1981 -C Denomination: 55,000 Dated: October 1, 1981 able at Principal and se 1 interest Farmers State Bank, Round Rock, Texas, t) pay or, at the option of the holder, at First City Bank of Dallas, Dallas, Texas. First interest coupon due February 1, 1983.V Coupon bearer bands, not registrable. These bonds (the "Bonds ") are the third installment of bonds authorized at an election held payable September 6, 1980, and constitute direct and voted general obligations of the City, P from an ad valorem tax levied, within the limits prescribed by law, on taxable property located within the City. MATURITY Yield Amount Maturit Rate Amount Maturit Rate Yield 3-60-,11-6 8_ X25,00 8_ _ 984 25,000 8-1-1985 50,000 B -L -1993 50,000 8 -1 -199 25,000 8 -1 -1987 50,000 8 -1 -1995 25,000 8-1-198 50,000 8 -1 -1996 25,000 8 -1 -1989 50,000 8-1-1989 75,000 8-1-1997* * 50,000 8 -1 -1991 50,000 8-1-199 1 75,000 150,000 8 -1 -1999* - * The City reserves the right, at its option, to dee Bands aturin 1Au1996,1, 1997, through 997 interest August 1, both inclusive, par vt, i whole any p payment date to thereafter, at the par value a thereof plus accrued interest to the date fixed for redemption. Pa ent Record: The Cit has never defaulted Le.alit Attorne General of the State of (Texas, and xas. Messrs. MnCaon1 rPinte. on & e Bons A ee Leea 11,inions. Antici.ated on or about October 13, 1981. Deliver Official Statement: TABLE OF CONTENTS Page Description of the Bonds 1 Elected Officials 3 Appointed Officials 3 Consultants and Advisors 3 Introductory Statement 4 Valuation and Debt Information 5 Ad Valorem Tax Legislation 6 Non-Funded Debt 7 Funded Debt Limitation 7 Valuation and Funded Debt History 7 Taxable Assessed Valuations by Category 8 Estimated Future Assessed Valuations 8 Estimated Overlapping Funded Debt Payable From Ad Valorem Taxes 9 Tax Rate Limitation 9 Tax Data 9 Municipal Sales Tax 10 Assessed Valuations and Tax Rates of Overlapping Taxing Jurisdictions 10 Top Ten Taxpayers 10 Proceeds 10 Debt Service Requirements 11 Tax Adequacy 12 Interest and Sinking Fund Management Index 12 Authorized General Obligation Bonds 12 Anticipated Issuance of Voted General Obligation Bonds 12 Computation of Self-Supporting Debt 12 Pension Fund 13 Condensed Statement of Operations - Waterworks and Sewer System 13 Coverage and Fund Balances 14 Waterworks System 14 Monthly Water Rates 15 Top Ten Water Customers 15 Sewerage System 16 Monthly Sewer Rates 16 General Information Regarding City and Its Economy 17/18 Ratings 19 Tax Exemption 19 Registration and Qualification of Bonds for Sale 19 Legal Investments in Texas 19 Legal Opinions and No-Litigation Certificate 19 Authenticity of Financial Information 20 Financial Advisor 20 Certification of the Official Statement 20 Audited Financial Statements, September 30, 1980, examined by Gibson Johnson & Company, Certified Public Accountants Appendix The cover page hereof, this page, the appendix included herein and any addenda, supplement or amendment hereto, are part of the Official Statement. City Council Larry L. Tonn Mayor Auditors Consulting Engineers Bond Counsel Financial Advisor ELECTED OFFICIALS Elected or Term Appointed Expires Occupation April 191/ April 1984 Texas State Department of Human Mike Robinson April 1978 April 1984 Self- employed, Plant Nursery Mayor Pro -Tem Graham Howell April 1980 April 1983 Savings and Loan Officer Councilmember Pete Correa April 1978 April 1982 Self - employed - Automotive Repairs Councilmember Joe Baker April 1980 April 1982 Civil Engineer Councilmember Trudy L. Lee September April 1983 School Teacher Councilmember 1979 Mike Heiligenstein April 1981 April 1984 Developer Councilmember APPOINTED OFFICIALS Resources Length of Employment Name Position and Length of Time in Position with City Robert L. "Bob" Bennett, Jr. City Manager for 2 1/2 Years 5 Years Joanne Land City Secretary for 5 Years 10 1/2 Years / Sam Huey Director of Finance for 3 1/2 Years 3 1/2 Years V �Z-' l ( k-s E 17, R c , ,2 ml: P w 1 'it_ yr,,e r Stephan L. Sheets City Attorney for 4 Years 4 Years Dusty Thames Tax Assessor - Collector for 6 Months 6 Months CONSULTANTS AND ADVISORS Gibson Johnson & Company Austin, Texas Haynie & Kallman, Inc. Round Rock, Texas McCall, Parkhurst & Horton Dallas, Texas First Southwest Company Dallas, Texas INTRODUCTORY STATEMENT This Official Statement of the City of Round Rock, Texas, a political subdivision located in Williamson County (the "City "), is provided to furnish information in connection with the sale of the City's $820,000 General Obligation Bonds, Series 1981 -C (the "Bonds "). The Official Statement was prepared to present for the purchaser of the Bonds information concerning the Bonds, the revenues (ad valorem taxes) pledged to the Bonds, the description of the revenue base, factors that may affect pledged revenues, and other pertinent data, all as more fully described herein. See "Table of Contents ". Source of Payment ... The Bonds are direct and voted general obligations payable out of the receipts from an ad valorem tax levied, within the limits prescribed by law, on taxable - property located within the City. In each year, the City shall determine the specific amount of, and assess, a tax sufficient to (1) pay current interest on the Bonds, and (2) create and provide a sinking fund of not less than 2% of the principal amount of the Bonds or not less than the principal payable out of such tax, whichever is greater, with full allowance being made for tax delinquencies and the cost of the collections. Purpose ... The proceeds from the sale of the $820,000 General Obligation Bonds, Series 1981 -C will be used to fund the following projects: Street Improvements, Curbs, Gutters and Drainage Fire Station and Equipment Total Project Costs Estimated Costs $ 570,000 250,000 $ 820,000 Future Bond Issues ... After the issuance of the Bonds, the "ity will have $2,010,000 author- ized general obligation bonds to be issued. The City does not have any plans to issue the remaining authorized general obligation bonds. Administration of the City ... The City operates under a Nome Rule Charter which was approved by the electorate on August, 1977. The Charter provides for a Mayor - Council form of government in which all powers of the City and determination of policy is vested. The Mayor - Council shall appoint a City Manager who shall be responsible for the administration of the affairs of the City. VALUATION AND DEBT INFORMATION 1981 Estimated Taxable Assessed Valuation (100% of Market Valuation) 1 ( ) $340,000,000 1980 Taxable Assessed Valuation (100% of Market Valuation) $175,013,695 Less Exemptions at 100% of Market Valuation (2) (3): Over 65 Homestead Exemptions $ 868,641 Disabled and Deceased Veterans 94,000 Agricultural Productivity Exemption 157,508 1,120,149 1980 Net Taxable Assessed Valuation (100% of Market Valuation) $173,893,546 City Funded Debt Payable From Ad Valorem Taxes: General Purpose Bonds (as of 7- 15 -81) Waterworks and Sewer System Bonds (as of 7- 15 -81) $ 4,446,140 Combination Tax and Revenue Certificates 8,957,860 of Obligation (as of 7- 15 -81) The Bonds, Series 1981 -C 290,000 820,000 Total General Obligation Debt $ 14,514,000 Less Self- Supporting Debt: Combination Tax and Revenue Certificates of Obligation $ 290,000 Waterworks and Sewer System General Obligation Bonds 2,409,664 2,699,664 Net Funded Debt Payable From Ad Valorem Taxes (4) $ 11,814,336 Interest and Sinking Fund (as of 7- 15 -81) $ 232,994 Ratio Net Funded Debt Pa om Ad Valorem Tares to 1980 Net Taxable Assesse 5 Va_Tuatuon __ — ____ Ra a un a Debt Payable From Ad Valorem Taxes to 1981 Estimated Taxable Assessed Valuation g.2 1951 Estimated Population - 13,764* 1980 U.S. Census Population - 12,764 Per Capita 1980 Net Taxable Assessed Valuation - $12,633.94 Per Capita Net Funded Debt Payable From Ad Valorem Taxes - $858.35 Area - 9.21 Square Miles * Source: Chamber of Cormnerce.t� \ , �p (1) Increased projected assessed valuation is a result of a full revaluation program performed this past summer. (2) Pursuant to authority permitted by Section 1 -b, Article VIII of the State Constitution, which became effective January 1, 1973, the City, beginning in 1975, has granted an exemption of not less than $3,000 of Assessed Valuation to the residence homestead of property owners over 65 years of age. The Net Taxable Assessed Valuation, as shown above, does not include $868,641 Assessed Valuation of properties exempted under this authority. (3) The Legislature, pursuant to a constitutional amendment and Article 7150h, VATCS, mandated an additional property tax exemption, beginning in 1976, for disabled veterans or the surviving spouse or children of a deceased veteran who died while on active duty in the armed forces. The exemption from taxation applies to either real or personal property with the amount of Assessed Valuation exempted ranging from $1,500 to $3,000, dependent upon the amount of disability or whether the exemption is applicable to a surviving spouse or children. The Net Taxable Assessed Valuation, as shown above, does not include $94,000 Assessed Valuation of properties exempted under this authority. (4) The above statement of indebtedness does not include $4,896,000 Waterworks and Sewer System Revenue Bonds presently outstanding, as these bonds are payable solely from and secured by a pledge of the net revenues of the System. 6.79% // � 0U AD VALOREM TAX LEGISLATION The Texas Legislature passed two bills, which affect the way property is assessed and taxes are collected in the City. H.B. 1060 implements the Texas Constitutional provisions of the "Tax Relief Amendments ", and S.B. 611 created a new "Property Tax Code." H.B. 1060 also provides, with certain exceptions, that intangible personal property is exempt from ad valorem taxes levied by the City. Also exempt are household goods and personal effects. Family -owned automobiles are exempt unless the City takes official action to tax them; the City does not tax this property. S.B. 621, creating a "Property Tax Code ", provided, among other things, for the establishment of county -wide Appraisal Districts and for a State Property Tax Board with authority to adopt - rules establishing minimum standards for administration and operation of Appraisal Districts and county assessor /collector offices. The Board, appointed by the Governor, commenced opera- tion on January 1, 1980. The Appraisal Districts for each county also commenced operation at that time. The Williamson County Appraisal District is governed by a board of five directors appointed by votes of the governing bodies of Williamson County and the cities and school districts in the Appraisal District, with votes allocated as provided by the statute. Under the statute, all taxing entities in the State are required to assess on a basis of 100% of appraised values beginning in 1981, however, the City of Round Rock commenced assessment at 100% of appraised values in 1979. The statute does not require Appraisal Districts to assume their responsibility until 1982. However, beginning in 1981 by agreement with the taxing entities in Williamson County, the Williamson County Appraisal District will be responsible for the appraisal of all values in the County. Parallel with this procedure, a reappraisal of all property in the County is being developed with completion of the reappraisal scheduled for January 1, 1983. The City of Round Rock in 1981 and the Williamson County Appraisal District thereafter are required under the Property Tax Code to assess all property on the basis of 100% of its appraised value and are prohibited from applying any assessment ratios. Values placed upon property within the Appraisal District are subject to review by an Appraisal review Board, consisting of three members appointed by the Board of Directors of the Appraisal District. The Appraisal District is required to review the value of property within the Appraisal District every five years. A taxing unit such as the City may require annual review at its own expense. In addition, a taxing unit is entitled to challenge the determination of appraised value of property within such taxing unit by petition filed with the Appraisal Review Board. S.B. 621 also provides that, beginning in 1982, by each August 1, or as soon as possible thereafter, the City must adopt a tax rate for the current year. If the effective tax rate, excluding tax rates for bonds and other contractual obligations and adjusted for new improve- ments, exceeds the rate for the previous year by more than 5 %, qualified voters of the City may petition for an election to determine whether to limit the tax rate to no more than 5% above that of the previous year. In addition to providing for a new method of appraisal by the Appraisal District rather than by the City, the Property Tax Code also provides that the Appraisal District can be required to collect property taxes within the Appraisal District as well as appraising such property if such collecting function is approved by the qualified voters in the Appraisal District after a petition signed by at least 10% of the number of qualified voters, or 10,000 qualified voters, whichever is less, has been presented to the Appraisal District. r NON- FUNDED DEBT (As of 7- 15 -81) Note Payable Interest Monthly Outstanding To For Rate Pa nt Balance Nationwide Leasing Computer System 12.1% $� $26,988.99 Xerox Copier 8.0% 260.03 7,680.66 Bank of San Antonio Sanitation Truck 7.5% 480.00 10,011.53 Bank of San Antonio Sanitation Truck 7.5% 735.00 10,337.49 First National Bank, Round Rock Sewer Machine 6.97% 297.58 2,421.29 IBM Typewriter 7.75% 22.00 231.00 TOTAL $57,670.96 FUNDED DEBT LIMITATION There is no direct debt limitation in the City Charter or under State Law. The City operates under a Home Rule Charter (Article XI, Section 5, Texas Constitution), approved by voters in August, 1977, that limits the maximum tax rate, for all City purposes, to $2.50 per $100 Assessed Valuation. Administratively, the Attorney General of the State of Texas will permit allocation of $1.50 of the $2.50 maximum tax rate for general obligation service. See "Tax Adequacy ". VALUATION AND FUNDED DEBT HISTORY Ratio Funded Funded Debt Debt to Taxable Outstanding Taxable Fiscal Assessed at End Assessed Period Valuation of Year Valuation 1969 -70 $ 1,793,304 $ -0- -0- 1970-71 3,172,251* 50,000 1.58% 1971 -72 3,351,067 50,000 1.49% 1972 -73 3,866,766 47,000 1.22% 1973 -74 4,702,701 44,000 .94% 1974 -75 8,164,643 ** 494,000 6.05% 1975 -76 13,688,321* 486,000 3.55% 1976 -77 26,499,472* 473,000 1.78% 1977 -78 40,025,430 459,000 1.15% 1978 -79 56,876,557 2,395,000 4.21% 1979 -80 127,212,478* 5,025,000 3.95% 1980 -81 173,893,546 13,689,000 7.87% 1981 -82 340,000,000 ** 14,509,000 4.46% * Increased basis of assessment as follows: 1970 -71 from 20% to 30 %; 1975 -76 from 30% to 40 %; 1976 -77 from 40% to 60 %; 1979 -80 from 60% to 100 %. ** Revaluation program. �\ TAXABLE ASSESSED VALUATIONS BY CATEGORY 1 1980 -- % of 1979 % of 1978 %'of Taxable Taxable Taxable Taxable Taxable Taxable Assessed Assessed Assessed Assessed Assessed Assessed Classification Valuation Valuation Valuation Valuation Valuation Valuation Real Estate: Land $ 31,447,936 18.00% $ 25,212,180 19.60% $11,346,559 19.73% Improvements 111,849,332 63.91% 88,583,241 68.87% 36,807,005 64.01% $143,347,268 81.91% $113,795,421 88.47% $48,153,564 83.74% Personal Property 31,666,427 18.09% 14,826,547 11.53% 9,352,373 16.26% Total Assessed '" Valuation $175,013,695 100.00% $128,621,968 100.00% $57,505,937 100.00% Less: Over -65 Exemptions 868,641 1,312,490 555,880 Veterans Exemptions 94,000 -0- -0- Agricultural Exemptions 157,508 97,000 72,500 Total Net Taxable Assessed Valuation $173,893,546 51.27,212,478 $56,876,557 TAXABLE ASSESSED VALUATIONS BY CATEGORY - CONTINUED 1977 % of 1976 %.of Taxable Taxable Taxable Taxable Assessed Assessed Assessed Assessed Classification Valuation Valuation Valuation Valuation Real Estate: Land $ 8,442,705 20.76% $ 6,437,155 23.84% Improvements 24,202,636 59.53% 15,576 ",688 57.69% $ 32,645,341 80.29% $22,013,843 81.53% Personal Property 8,015,279 19.71% 4,987,349 18.47% Total Assessed Valuation $ 40,660,620 100.00% $27,001,192 100.00% Less: Over -65 Exemptions 579,190 462,220 Veterans Exemptions 56,000' 39;500 Tdtal Net Taxable Assessed Valuation * Source: City Planning Department. 40,025,430 $26,499;472 ESTIMATED FUTURE ASSESSED VALUATIONS* 1981 $340,000,000 1982 385,000,000 1983 450,000,000 1984 $520,000,000 1985 595,000,000 1986 675,000,000 ESTIMATED OVERLAPPING FUNDED DEBT PAYABLE FROM AD VALOREM TAXES (As of 7- 15 -81) Estimated Taxing Jurisdiction Total % Overlapping City of Round Rock Funded Debt Applicable Funded Debt Round Rock Independent School District $43,3,000 128.43% $12,332,934 Williamson County 43,388 28.43% 12,332,934 Brushy Creek Water Control and 0 20.32% 0_ Improvement District No. 1 6.48% Total Overlapping Funded Debt $26,846,934 Ratio Overlapping Funded Debt to 1980 Net Taxable Assessed Valuation Ratio Overlapping Funded Debt to 1981 Estimated Taxable Assessed Valuation 17.90% 7.90% Per Capita Overlapping Funded Debt - $1,950.52 TAX RATE LIMITATION All taxable property within the City is subject to the assessment, levy and collection by the City of a continuing, direct annual ad valorem tax sufficient to provide for the payment of principal of and interest on the bonds within the limits prescribed by law. Article XI, Section 5, of the Texas Constitution is applicable to the City, and by Home Rule Charter its maximum ad valorem tax rate is limited to $2.50 per $100 Assessed Valuation (for all City purposes). TAX DATA (Year Ending 9 -30) Distribution Tax Tax General Interest and % Current % Total Year Rate Fund Sinking Fund Tax Levy Collections Collections 1970 -71 $1.25 $1.2500 $ -0 -* $ 39,653 80.91% 100.94% 1971 -72 1.25 1.2500 -0- 41,888 83.15% 1972 -73 1.25 1.2500 -0- 48,335 82.329 94.10% 1973 -74 1.25 1.2500 -0- 58,784 84.36% 98.95% 1974 -75 1.25 1.2500 -0- 102,058 79.33% 93.97% 1975 -76 1.25 1.2500 -0- 171,104 81.54% 93.22% 1976 -77 0.85 0.8500 -0- 225,246 94.01% 1977-78 0.85 0.8500 -0- 334,775 90.46% 92.408 1978 -79 0.85 0.7700 0.0800 480,013 93.27% 97.73% 1979 -80 0.70 0.5555 0.1445 871,347 94.90% 99.05% 1980 -81 0.77 0.6100 0.1600 1,338,980 93.12 % ** 94.36 % ** * All taxes, prior to the 1978 Tax Year were deposited to the General Fund and transfers were made to the Interest and Sinking Fund, as needed. ** Collections for part year only, through 7- 15 -81. Current collections represent collections to delinquent date only, except for the 1976 and 1977 Tax Year. Low collections for 1977 through 1979 are a result of the many home builders not paying taxes on new homes, until the home is sold. Property within the City is assessed as of January 1 of each year; taxes become due October 1 of the same year, and become delinquent on February 1 of the following year. Split payments are not permitted. Discounts are not allowed. Charges for penalty and interest are made as follows: February - 1/2 %; March - 3 %; April - 4 1/2 %; May - 6 %; June - 7 1/2 %; July - 11 %; August - 11 1/2 %; September - 12 %; October - 12 1/2 %; November - 13 %; December - 13 1/2 %. MUNICIPAL SALES TAX (Effective 4 -1 -b8) The City has adopted the provisions of Article 1066c, Vernon's Texas Civil Statutes, as amended, which grants the City the power to impose and levy a 1% Local Sales and Use Tax within the City, the proceeds being credited to the General Fund. Collections and enforcements are effected through the offices of the Comptroller of Public Accounts, State of Texas, who remits the proceeds of the tax, after deduction of a 2% service fee, to the City monthly. Revenue from this source has been: % Equivalent of Calendar Total Ad Valorem Ad Valorem Year Collected Tax Levy Tax Rate 1971 $ 17,721 42.33% $0.5292 1972 24,744 50.47% .6308 1973 30,249 51.46% .6430 1974 36,859 36.12% .4514 1975 47,912 28.80% .3500 1976 68,580 30.45% .2588 1977 105,635 31.05% .2639 1978 220,115 45.86% .3870 1479 359,758 41.299 .2828 1980 435,689 32.539 .2505 1981 525,000* N.A. .1615 * 12 months projected through 12- 31 -81. ASSESSED VALUATIONS AND TAX RATES OF OVERLAPPING TAXING JURISDICTIONS Taxing Jurisdiction Williamson County Round Rock Independent School District Brushy Creek Water Control and Improvement District No. 1 Name of Taxpayer McNeil Consumer Products Company B -J Hughes, Incorporated Nash - Phillips Copus Farmers State Bank Southwestern Bell Telephone Company Sweet Publishing Company Round Rock, Ltd. Texas Power & Light Company Bennett Barnes Allied Development Company Street Improvements, Curbs, Gutters, and Drainage Fire Station and Equipment Total Project Costs - 10 - 1980 Assessed Valuation $267,397,080 611,654,094 34,178,725 % of Actual 31.25% 100.00% 25.00% 1980 Tax Rate $0.90 1.32 * The District has not levied a tax since the 1972 Tax Year. The Assessed Valuation shown represents the District's 1972 valuation. TOP TEN TAXPAYERS 1980 % of 1980 Net Taxable Net Taxable Assessed Assessed Nature of Property Valuation Valuation Pharmaceutical Manufacturer $ 9,593,022 5.52% Oil Field Tools 8,159,384 4.69% Home Developers 4,012,138 2.31% Bank 3,278,381 1.89% Telephone Utility 3,140,420 1.81% Publishing Company 2,307,294 1.33% Home Developers 1,569,796 .90% Electric Utility 1,399,030 .80% Shopping Center 982,305 .56% Home Developers 889,185 .51% $35,330,955 20.32% PROCEEDS The proceeds from the sale of the $820,000 General Obligation Bonds, Series 1981 -C will be used to fund the following project: Estimated Costs $ 570,000 250,000 $ 820,009 DEBT SERVICE REQUIREMENTS Grand Total Less: Combi- L ess Sewer Grand Total Year ?n6s of Obl i ,L5 General nation Tax _ Ending Outstandin Oeht Fiscal Obligation and Revenue System General Gen r l Debt Principal The Bonds - Series 1981 -C Debt Certificates Obligation P g-30 Prin 8 - g Re u9_ rte__ 49 o 44Y 25,827 851,299 573,763 920,00 Interest Tota Total Principal $ 1 g ,69 176,6 $ 176 1,450,889 1 1 983 320,000 954,248 1,274,24 $ 1984 377,000 904,98 1,316,5 $ 20,000 96,350 116,350 1,425,498 87 521,219 11.83% 4 25 ,261 867,821 532,416 ,142 527,036 1985 412,000 874,4501 1,321,401 25,000 94,000 119,000 1,437,464 34,413 874,142 36 527,0 1986 447,000 874,401 1,321,401 25,000 91,063 116,063 1,437,464 35,882 919,682 532,481 1987 487,000 642,206 1,329.206 25,000 88,125 113,125 1,442,331 32,153 900,178 523,725. 1988 532,000 807,615 1,362,636 25,000 85,188 110,188 1,449,803 510,000 1990 592,000 770,636 1 377 301 50,000 76, 250 132,250 1,494,886, 39,328 942,319 532,481 33.58% ,, 923,077 523,725 1991 647,000 730,301 1,382,696 50,000 76,375 120,500 1,503,676 34,240 896,534 589,605 524,273 499 1992 fi92,000 6,000 83,433 1,405,433 50,000 58,75 58,750 108,750 114,625 1,503,196 1,514,183 34,240 888,684 514, 35,936 877,655 574,415 1993 822,000 527,413 1,414,513 50,000 912,125 595,228 1995 942,000 527,513 1,414,513 50,000 47,000 197,000 1,506,980 30,84 912,125 1995 942,000 467,980 1,409,980 50,000 946,359 587,281 1996 1,017,000 401,840 1,418,840 50,000 41,125 10,250 1,533,640 941,752 566,500 65.908 923,270 575,365 1998 1,142,000 331,390 1,397,197 75,000 35,250 101,438 1,533,640 616,118 575,365 780,300 1998 1,887,000 255,197 1,397,197 75,000 26,438 167,625 1,498,635 332,154 332,54 448,146 97.37% 448,146 1999 887,000 175,324 1,062,324 150,000 17,625 161,625 1,229.7 180,135 2000 672,000 108,300 780,300 527,825 14,715 2001 472,000 22,850 194,850 194,850 14,715 176,477 2 2002 178,000 22,850 194,850 190,375 24,600 2003 13,000 12,375 190,375 24,600 3,450 2004 23,000 1,450 24,600 3,450 3,300 2005 3,000 450 3,450 3,300 3,300 100.00% 2006 3,000 300 3,300 3,150 2007 3,000 150 3,150 $13,689,000 $12,442,715 $26,131,7 $ 820,000 $1,204,180 $2,024,18 $ 28,155,895 $418,598 $16,667,283 $ 11,070,01 Note: Interest on the Bonds has been calculated at the rate of 11.75% for purposes of illustration. TAX ADEQUACY 1981 Estimated Taxable Assessed Valuation $340,000,000 All General Obligation Debt (including Series 1981 -C) 1982 Principal and Interest Requirements $ 1,449,698 $0.449 Tax Rate @ 95% Collection Produces $ 1,450,270 Average Annual Principal and Interest Requirements, 1982 -2007 $ 1,082,919 $0.336 Tax Rate @ 95% Collection Produces $ 1,085,280 General Purpose Debt (including Series 1981-C) 1982 Principal and Interest Requirements $ 537,406 $0.167 Tax Rate @ 95% Collection Produces $ 539,410 Average Annual Principal and Interest Requirements, 1982 -2007 $ 425,770 $0.132 Tax Rate @ 95% Collection Produces $ 426,360 INTEREST AND SINKING FUND MANAGEMENT INDEX General Obligation Debt Service Requirements, Fiscal Year Ending 9 -30 -81 $258,060* Interest and Sinking Fund, All General Obligation Issues, 9 -30 -80 $ -0- 1980 Interest and Sinking Fund Tax Levy @ 95% Collection 264,318 264,318 Estimated Surplus $ 6,258 * Less $21,533 payment on Combination Tax and Junior Lien" Revenue Certificates of Obligation which are self- supporting. AUTHORIZED GENERAL OBLIGATION BONDS Amount Amount Date Amount Heretofore Being Unissued Purpose Authorized Authorized Issued Issued Balance Streets and Right-of-Way 7272778 $ 2,775,000 $ 2,205,000 $ 570,000 $ -0- Park 12 -2 -78 240,000 175,000 -0- 65,000 Fire Station 12 -2 -78 1,265,000 655,000 250,000 360,000 North Fork Project 9 -6 -80 10,000,000 8,415,000 -0- 1,585,000 $14,280,000 $11,430,000 $ 820,000 $2,010,000 ANTICIPATED ISSUANCE OF VOTED GENERAL OBLIGATION BONDS The City does not have any plans to issue the remaining $2,010,000 authorized general obligation bonds at this time. COMPUTATION OF SELF - SUPPORTING DEBT Net Revenue from the Waterworks and Sewer System, Fiscal Year Ended 9 -30 -80 $692,135 Less: Revenue Bond Requirements, 1981 Fiscal Year 466,770 Balance Available for Other Purposes $225,365 Less: Combination Tax and Junior Lien Revenue Certificates of Obligation Requirements, 1981 Fiscal Year 21,533 Balance Available for Other Purposes $203,832 Average Annual Requirements for System General Obligation Tax Bonds, 1982 -2003 $757,604 Percentage of Combination Tax and Junior Lien Revenue Certificates of Obligation, Self- Supporting 100.00% Percentage of System General Obligation Tax Bonds Self - Supporting 26.90% - 12 - PENSION FUND The City has one pension plan covering all of its employees with the Texas Municipal Retirement System. On November 1, 1973, the City passed an ordinance which allowed employees to contri- bute to the System 5.5% of their gross salary. The amount of the actual computed value of vested benefits over the total of the pension fund at 9 -30 -80 for the System is not available. CONDENSED STATEMENT OF OPERATIONS WATERWORKS AND SEWER SYSTEM (Extracted from City's Audited Financial Statements) Period Ended 9 -30 -80 9- 30 -79* 9 -30 -78 9 -30 -77 9 -30 -76 INCOME Water System Water Collections $ 755,700 $514,604 $315,958 $214,364 $173,468 Water Taps 73,263 96,529 71,228 58,234 30,885 Reconnection Charges -0- -0- -0- 75 123 Sale of Material -0- -0- -0- 2,159 15 Utility Fund Reimbursement -0- -0- -0- -0- -0- Brushy Bend Collections -0- -0- -0- 8,636 -0- Miscellaneous 11,402 650 -0- 102 -0- Total Water Income $ 840,365 $611,783 $387,186 $283,570 $204,491 Sewer System Sewer Collections $ 238,027 $135,517 $ 85,812 $ 70,625 $ 48,169 Sewer Taps 84,243 94,789 46,699 38,635 18,223 Utility Fund Reimbursement -0- -0- -0- -0- -0- Miscellaneous 5,526 216 -0- 15 40 Total Sewer Income $ 327,796 $230,522 $132,511 $109,275 $ 66,432 Total System Income 51,168,161 $842,305 $519,697 5392,845 $270,923 EXPENSES Water System Administrative $ 67,777 $ 50,748 $ 38,076 $ 23,697 $ 19,640 Water Department 214,021 174,861 130,032 61,032 49,314 Miscellaneous -0- 5,231 -0- 501 -0- Total Water Expenses $ 281,798 $230,840 5168,108 $ 85,230 $ 68,954 Sewer System Administrative $ 53,801 $ 25,381 $ 20,243 $ 7,545 $ 3,595 Sewer Department 140,427 87,456 69,129 56,192 29,588 Miscellaneous -0- 2,616 -0- -0- -0- Total Sewer Expenses $ 194,228 $115,453 $ 89,372 $ 63,737 $ 33,183 Total System Expenses $ 476,026 5346,293 $257,480 $148,967 $102,137 NET INCOME AVAILABLE FOR DEBT SERVICE $ 692,135 5496,012 $262,217 $243,878 $168,786 Water Customers 3,974 , 3,695 3,005 2,304 1,786 Sewer Customers 3,935 3,552 2,859 2,202 1,691 * Increased water and sewer rates, effective 12- 20 -78. Note: Water collections for fiscal year 9 -30 -78 are inclusive of Brushy Bend collections and represent a modified accrual statement. The City has since gone to a modified accrual method of accounting. The water and sewer collections entry is inclusive of all additional revenues received by that system. The 9 -30 -79 and 9 -30 -80 water collections are inclusive of reconnect charges, sale of material, and Brushy Bend collections. - 13 - COVERAGE AND FUND BALANCES Average Annual Principal and Interest Requirements, 1982 -2009 $ 369,322 Coverage of Average Requirements by 9 -30 -80 Net Income 1.87 Times Waterworks and Sewer System Revenue Bonds Outstanding, 7 -15 -81 $4,896,000 Interest and Sinking Fund, 7 -15 -81 $ 388,940 Reserve Fund, 7 -15 -81 $ 171,236 Note: Requirements for issuance of additional bonds, as set forth in the outstanding Bond Ordinances, state that average annual principal and interest requirements on the outstanding bonds must be covered 1.50 times by net income, based on fiscal year ended 9 -30. WATERWORKS SYSTEM The Round Rock water system is divided into five (5) service levels. Level 1 -A serves customers in the central portion of the City. Intermediate Level 1 -8 was created to meet increasing residential and industrial demands in the northern portion. Level 2 was established to provide for service extension to the West and Southwest. Level 3 was developed to serve industrial facilities to the far North, primarily the Westinghouse plant. Level 4 is located to the Southeast to serve current and future expansion in that direction. Besides providing service to these areas, the City also sells water by contract to Williamson County Municipal Utility District No. 2 and Brushy Bend Park. MUD #2 will serve approximately 750 acres and 800 homes when fully developed. Anticipated water supply requirements for the City are presented in Table I: Table I Water Supply Requirements (1980 -1986) Peak Daily Usage Population (3 Times Average Daily Usage) Year Projection (MGD) (GPM 1581 15,328 6.90 1982 17,935 8.07 5,600 1983 20,981 9.44 6,560 1984 24,547 11.05 7,670 1985 28,720 12.92 8,975 1986 33,602 15.12 10,500 Source: City of Round Rock Planning Department. At this time, water wells pumping from the Edwards Aquifer provide the only source of water for the City. The only required treatment is gas chlorination prior to storage. Current pumping capability of the City's wells is listed in Table No. II: Well Location Lake Creek Lake Creek Lake Creek Lake Creek Tower Drive Westinghouse Westinghouse Brushy Creek Spring Creek Burnette Austin Industries Table II Existing Water Wells Pump Capacity GPM MGO - 14 - 250 0.360 1,250 1.800 1,200 1.728 3,000 0.432 300 0.432 300 0.432 100 0.144 1,400 1.106 1,400 2.016 750 1.080 300 0.432 These wells have a combined safe water pumping capability of 6,050 GPM, or 8.70 MGD. The City has three ground storage tanks with a combined capacity of 1,750,000 gallons plus four standpipes and an elevated tank with combined storage capacity of 2,310,000 gallons. To meet increasing system demands, the City contracted with Brazos River Authority of Texas for a surface water supply of 6.0 MGD, or 18.42 acre feet per day (average use) from recently completed Lake Georgetown. The lake is located on the North Fork of the San Gabriel River 7 miles northwest of Round Rock. Construction has begun on the conveyance and treatment facili- ties. Completion is expected in mid -1982. Included in this project is additional ground storage capacity of 1,000,000 gallons. In conjunction with current improvements, monthly water rates were revised. The previous and current rates are presented below for comparison. OLD MONTHLY WATER RATES (Effective 12- 20 -78) Residential and Commercial First 3,000 gallons $4.00 (Minimum) Over 3,000 gallons $1.00 /M gallons All customers outside the City limits pay 2 times the inside City rate. The City has a multi -year contract with Westinghouse to furnish treated water and sanitary sewer service. The City increased Westinghouse's water rate from $1.08/M gallons to $1.43/M gallons, effective 10- 31 -79. Sewer rates are the same as for an inside city limits commercial user. All bills for water, sewer, and garbage collection are dated and mailed at such time as may be directed by the City Manager, and payment for such bills is due on or before the 15th of each month. Any bill not paid by the 15th of the month is considered past due and a penalty of $2.50 or 5 percent of the total amount due, whichever is more is assessed. If a bill continues to be past due for a period of 30 days, the water is cut off and the meter removed. The City's top ten water customers are as follows: TOP TEN WATER CUSTOMERS Total Gallons Sold Per Year % of Customer (000's) Water Sold Westinghouse 151,450 4.10% Round Rock High School 101,268 2.74% McNeil Consumer Products Company 84,513 2.29% Country Place Apartments 52,046 1.41% Trinity Homes 37,895 1.03% Sam Bass Apartments 35,835 .97% Texas Baptist Childrens Home 29,031 .79% Traveler Inn 19,374 .52% Middle School 13,148 .36% Texas Highway Department (Roadside Park) 12,339 33% 536,899 Note: Total water billed was 369,676,500 gallons, for the 9 month period ended 6- 30 -81. - 15 - NEW MONTHLY WATER RATES (Effective 3- 26 -81) Residential and Commercial First 3,000 gallons $4.00 (Minimum) Next 17,000 gallons $1.00 /M gallons Next 55,000 gallons $1.25/M gallons Over 75,000 gallons $1.50 /M gallons SEWERAGE SYSTEM Construction of additional sewage treatment facilities has recently been completed, giving the City a treatment capability of approximately 3.1 MGD. Current average daily flow is about 1.4 MGD. Effluent quality is within acceptable limits of a 10- 15 Texas Water Quality Board Discharge Permit. Sewage collection mains range in size from 6 to 15 inches in diameter. The system contains eight (8) lift stations. Average system flows are depicted in Table III: Table III Average Daily Sewage Flow 1968 124,000 gallons 1969 177,000 gallons 1970 186,000 gallons 197I 210,000 gallons 1972 220,000 gallons 1973 250,000 gallons 1974 295,000 gallons 1975 410,000 gallons 1976 580,000 gallons 1977 700,000 gallons I978 1,200,000 gallons 1979 1,330,000 gallons 1980 1,400,000 gallons OLD MONTHLY SEWER RATES (Effective 12- 20 -78) Inside City Limits Outside City Limits Residential and Commercial Residential and Commercial First 3,000 gallons $4.00 (Minimum) Over 3,000 gallons 0.20 /M gallons* First 3,000 gallons $8.00 (Minimum) Over 3,000 gallons 0.20/M gallons* * Monthly water consumption shall be based upon the average monthly water consumption for the month of November, December, January, February and March of each year. NEW MONTHLY SEWER RATES (Effective 4 -9 -81) Inside City Limits Outside City Limits Residential and Commercial First 3,000 gallons $5.00 (minimum) Over 3,000 gallons 1.00 /M gallons* - 16 - Residential and Commercial first 3,000 gallons $10.00 (Minimum) Over 3,000 gallons 1.00 /M gallons* * Monthly sewer use is based upon the average monthly water consumption for the months of November, December, January, February and March of each year. Table IV Waterworks and Sewer System Statistical Data Fiscal Year Ended 6- 30 -81* 9 -30 -80 9 -30 -79 9 -30 -78 9 -30 -77 Thousand Gallons of Water Billed 369,67/ 619,915 ** 648,561 541,021 497,910 Total Water Billings $419,650 $722,636 $456,797 $304,359 $214,364 Number of Water Billings - 38,247 45,322 39.,631 32,363 25,067 Average Monthly Water Bill $ 10.97 $ 15.94 $ 11.53 $ 9.40 $ 8.55 Total Sewer Billings $339,493 $227,689 $145,862 $ 85,812 $ 70,625 Number of Sewer Billings 37,938 45,024 38,909 30,647 23,865 Average Monthly Sewer Bill $ 8.94 $ 5.06 $ 3.75 $ 2.80 $ 2.96 * Nine months ending 6- 30 -81. ** Decrease in water billed due to mandatory water conservation program implemented by the City Council to curb water usage during the summer months. GENERAL INFORMATION REGARDING CITY AND ITS ECONOMY LOCATION The City of Round Rock is located in Williamson County, 15 miles north of Austin and 85 miles south of Waco on Interstate Highway 35. The City is also situated on U. S. Highway 79 which runs east and west. Both U. 5. Highway 79 and Interstate Highway 35 are main arteries of traffic in the State. ECONOMY Due to its enviable location and proximity to Austin, the City of Round Rock is diversified with industry, business, professional, farming and ranching economy. The City is being marked as one of the fastest growing cities in the State and can only prosper from this tremendous economic growth. CITY GOVERNMENT AND COMMUNITY SERVICES The City is a Council- Manager form of government with a Mayor and seven councilmen. A full -time fire department consisting of 31 members and 8 vehicles, a police staff of 12 and 5 vehicles, eight parks and two recently built swimming pools are all available to the community. The Round Rock Leader, a weekly paper, two Austin daily papers and a public library with 11,000 volumes are just a few of the many community services offered to the citizens of Round Rock. FINANCIAL INSTITUTIONS The City has access to two banks and three major savings and loan associations which have at this time total deposits of approximately $63 and $25 million, respectively. Other banking institutions are easily accessible in nearby Austin. UTILITIES The City is served by Southwestern Bell Telephone Company, Texas Power & Light Company and Lone Star Gas Company. Water and sewer facilities are furnished by the City. TRANSPORTATION The City is within easy access to the Austin Municipal Airport and also Tim's Airpark, a private airport located near the City. Two major railroads, two motor freight lines and three bus lines serve the City on routinely scheduled intervals. EDUCATIONAL FACILITIES The City of Round Rock is located entirely within one of the fastest growing school districts in the State, Round Rock Independent School District. The District is comprised of 110 square miles with a current 1980 Assessed Valuation of $611,654,094. The district maintains nine elementary, two middle and two senior high schools. Budget for the current year is $35,256,688 with a scholastic enrollment of 10,200. Assessed Value Total Real Property Year Enrollment (000's T 7 $ 2/,71 1971 2,200 27,922 1972 2,646 34,749 1973 3,400 53,000 1974 4,500 111,000 1975 5,483 125,000 1976 7,000 152,000 1977 7,500 196,400 1978 8,300 276,530 1979 9,100 533,222 1980 10,200 611,654 - 17 - The City is within 90 miles of six of the major universities in the State, including the University of Texas at Austin, just 15 miles away. Southwestern University is located eight miles north in the City of Georgetown. CITY GROWTH STATISTICS Electric Building Sales Tax Bank Year Population Meters Permits Receipts Deposits 1970 2,811 917 $ 1,708 $ 15,404 5 6,076,006 1971 3,060 985 2,147 17,721 8,189,000 1972 3,310 1,110 5,365 24,744 12,168,000 1973 3,560 1,251 9,509 30,249 16,736,000 1974 3,860 1,284 13,244 36,859 20,588,000 1975 5,000 1,693 16,118 47,912 22,838,000 1976 6,176 2,088 42,680 68,580 29,857,000 1977 8,500 4,548 88,447 105,635 35,567,462 1978 11,005 4,928 141,295 220,115 41,989,936 1979 12,500 5,343 104,184 359,758 54,916,774 1980 12,764 5,761 84,832 435,689 78,191,201 1981* 13,764 6,010 70,190 306,191 91,291,002 * As of 6- 30 -81. AREA EMPLOYERS Major employers in the area include the following: Austin White Lime; Eagle Signal Corpora- tion; IBM Corporation; Motorola Corporation; Preferred Stamping Company; Sweet Publishing Company; Texas Crushed Stone; Texas Instruments; Westinghouse Heavy Motor Division; B -J Hughes, Incorporated; McNeil Consumer Products Company; and MKM Corporation. Tellabs, Burroughs and Abbott Laboratories, three major corporations, have acquired plant sites in and around the City and will begin construction in the very near future. RECREATION Lake Travis, together with a number of other major lakes and parks, is in the near vicinity to add recreational dimension to the area. The hunting of deer, quail and mourning doves can also be enjoyed throughout this area. Source: All of the information contained in this General Information Regarding the City and Its Economy has been compiled from material supplied by the Round Rock Chamber of Commerce. - 18 - RATINGS Applications for contract ratings on this issue have been made to Moody's Investors Service, Inc. and Standard & Poor's Corporation. An explanation of the significance of such ratings may be obtained from the company furnishing the rating. The ratings reflect only the respective views of such organizations and the City makes no representation as to the appropriateness of the ratings. There is no assurance that such ratings will continue for any given period of time or that they will not be revised downward or withdrawn entirely by either or both of such rating companies, if in the judgment of either or both companies, circumstances so warrant. Any such downward revision or withdrawal of such ratings, or either of them, may have an adverse effect on the market price of the Bonds. TAX EXEMPTION The delivery of the Bonds is subject to an opinion of Messrs. McCall, Parkhurst & Horton, Bond Counsel to the City ( "Bond Counsel "), to the effect that interest on the Bonds is exempt from all present Federal income taxes under existing statutes, rulings, regulations and court decisions. The laws, regulations, court decisions and administrative regulations and rulings upon which the conclusion stated in Bond Counsel's opinion will be based are subject to change by the Congress, the Treasury Department and later judicial and administrative decisions. REGISTRATION AND QUALIFICATION OF BONDS FOR SALE The sale of the Bonds has not been registered under the Federal Securities Act of 1933, as amended, in reliance upon the exemption provided thereunder by Section 3(a) (2); and the Bonds have not been qualified under the Securities Act of Texas in reliance upon various exemptions contained therein; nor have the Bonds been qualified under the securities acts of any jurisdic- tion. 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 qualification for 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 IN TEXAS The Bonds are legal investments for sinking funds of Texas counties, cities and towns. They are eligible to secure Texas state, county, city and school district funds and constitute legal investments for insurance companies in the State of Texas. No review has been made of the laws of states other than Texas to determine whether the Bonds are legal investments for various institutions in those states. LEGAL OPINIONS AND NO- LITIGATION CERTIFICATE 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 the State of Texas, to the effect that the Bonds are valid and legally binding obligations of the City, and based upon examination of such transcript of proceedings, the unqualified approving legal opinion of Bond Counsel, to like effect and to the effect that the interest on the Bonds is exempt from Federal income taxation under existing statutes, regula- tions, rulings and court decisions. 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 the provision made for their payment or security, or in any manner questioning the validity of said Bonds or the coupons appertain- ing thereto, will also be furnished. Bond Counsel was not requested to participate, and did 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 undertaken independently to verify any of the information contained therein, except that, in its capacity 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 bond ordinance. The legal fees to be paid Bond Counsel for services rendered in connection with the issuance of the Bonds are contingent on the sale and delivery of the Bonds. The legal opinion will be printed on the Bonds. - 19 - AUTHENTICITY OF FINANCIAL 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 is no guarantee that any of the assumptions or estimates contained herein will be realized. All of the summaries of the statutes, documents and resolutions contained in this Official Statement are made subject to all of the provisions of such statutes, documents and resolutions. These summaries do not purport to be complete statements of such provisions and reference is made to such documents for further information. Reference is made to original documents in all respects. FINANCIAL ADVISOR First Southwest Company is employed as Financial Advisor to the City in connection with the issuance of the Bonds. The Financial Advisor's fee 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 Bonds, either independently or as a member of a syndicate organized to submit a bid for the Bonds. CERTIFICATION OF THE OFFICIAL STATEMENT At the time of payment for and delivery of the Bonds, the Purchaser will be furnished a certificate, executed by proper officers, acting in their official capacity, to the effect that to the best of their knowledge and belief: (a) the descriptions and statements of or pertain- ing to the City contained in its Official Statement, and any addenda, supplement or amendment thereto, on the date of such Official Statement, on the date of sale of said Bonds and the acceptance of the best bid therefor, and on the date of the delivery, were and are true and correct in all material respects; (b) insofar as the City and its affairs, including its financial affairs, are concerned, such Official Statement did not and does not contain an untrue statement of a material fact or omit to state a material fact required to be stated therein or necessary to make the statements therein, in the light of the circumstances under which they were made, not misleading; (c) insofar as the descriptions and statements, includ- ing financial data, of or pertaining to entities, other than the City, and their activities contained in such Official Statement are concerned, such statements and data have been obtained from sources which the City believes to be reliable and that the City has no reason to believe that they are untrue in any material respect; and (d) there has been no material adverse change in the financial condition of the City since the date of the last audited financial statements of the City. The City will furnish the Purchaser, as a part of the transcript of proceedings, a certified copy of a resolution of the City as of the date of the sale of the Bonds which will approve the form and content of this Official Statement, and any addenda, supplement or amendment thereto, and authorize its further use in the reoffering of the Bonds by the Purchaser. LARRY L. TONN Mayor ATTEST: JOANNE LAND City Secretary -20- APPENDIX The information contained in this Appendix has been reproduced from the City of Round Rock, Texas Annual Audit Report for the Fiscal Year Ended September 30, 1980. The information pre- sented represents only a part of the Annual Audit Report and does not purport to be a complete statement of the City's financial condition. Reference is made to the complete Annual Audit Report for further information. FRANK A GIBSON C.P.A MORRIS D JOHNSON. CPA BENTON E. RYON. C.P.A. RICHARD R. SINGHAUS. C PA M HOWARD FASKE. CPA. LARRY W. LAY. C P.A. CHARLES R. LOEFFLER C P A FRANK L. MELVIN. C PA JAMES M NEELY. JR EDWARD L. RANDLE Honorable Mayor and Members of the City Council City of Round Rock Round Rock, Texas GIBSON JOHNSON & GO. CERTIFIED PUBLIC ACCOUNTANTS 4200 NORTH LAMAR PO. BOX 4486 AUSTIN. TEXAS 78765 1512) 454 -5793 We have examined the financial statements of the various funds and account groups of the City of Round Rock for the year ended September 30, 1980 as listed in the accompanying table of contents. Our examination was made in accordance with generally accepted auditing standards and accordingly included such tests of the accounting records and such other auditing procedures as we considered necessary in the circumstances. The scope of our examination did not include examination of fixed assets, utility plant in service, retained earnings or fund balances prior to September 30, 1977, as explained in Note 1, and we express no opinion on their fairness. In our opinion, except as explained in the preceding paragraph, the financial statements listed in the accompanying table of contents present fairly the financial position of the City of Round Rock at September 30, 1980, and the results of its operations and changes in its financial position for the year then ended in conformity with generally accepted accounting principles. The supplemental information listed in the accompanying table of contents is not necessary for a fair presentation of the financial statements of the City. However, this information has been subjected to the audit procedures applied in the examination of the basic financial statements. In our opinion, except as explained in the second paragraph, the accompanying supplemental information is fairly stated in all material respects in relation to the financial statements taken as a whole. Austin, Texas December 16, 1980 CITY OF ROUND ROCK COMBINED BALANCE SHEET - ALL FUNDS SEPTEMBER 30, 1980 Trust & Agency Enterprise General Government - Fund Fund Special Debt Capital General General Fireman's General Revenue Service Projects Fixed Long -term Pension Utility Fund Fund Fund Fund Assets Debt Fund Fund ASSETS AND OTHER DEBITS Cash $ 96,082 $ 7,086 $ $ 29,373 $ $ $373 $ 72,255 Certificates of deposit 119,590 186,000 50,000 Savings accounts 11,999 13,947 62,486 Accounts receivable (net) 56,193 28,492 46,423 91,003 Due from other funds 63,090 5,160 10,724 10,279 Prepaid expenses 7,516 Accrued interest receivable 2,276 328 8,071 Supplies inventory 5,987 Restricted assets Cash and savings 95,763 Investments 1,693,240 Land 946,600 253,800 Buildings 471,321 268,726 Improvements other than buildings 7,547,794 3,393,678 Machinery and equipment 635,000 293,990 Construction in process 2,288,033 672,583 Accumulated depreciation - (565,151) Amount to be provided for retirement of debt - - 3,119,442 Total assets and other debits $344,747 $52,737 $ -0- $. 286,795 $11 ,888,748 $3,119,442 $373 $6,406,710 LIABILITIES Accounts payable and accrued expenses $ 84,061 $ 3,079 $ $ 93,115 $ $ $ $ 309,086 Due to other funds 10,115 5,242 16,048 57,848 Bonds payable 3,025,000 5,239,000 Notes payable 94,442 5,257 Customer deposits 68,714 Reserve for expenditures 171,365 Total liabilities 94,176 8,321 280,528 3,119,442 5,679,905 RESERVES AND FUND BALANCE /RETAINED EARNINGS Reserve for revenue bond retirement 157,482 Investment in general fixed assets 11,888,748 Fund balance 250,571 44,416 6,267 - 373 Retained earnings (deficit) - 569,323 Total liabilities, reserves, fund balance /retained earnings $344,747 $52,737 $ -0- $ 286,795 $11,888,748 $3,119,442 $373 $6,406,710 The accompanying notes are an integral part of these financial statements. CITY OF ROUND ROCK SCHEDULE OF INVESTMENTS SEPTEMBER 30, 1980 Interest Rate Certificates of Deposit ( %) Amount General Fund CD 1/816 First National Bank, Round Rock 9.1 $ 102,275 CD #853 First National Bank, Round Rock 8.0 12,930 115,205 I I Utility Fund CD # 858 First National Bank, Round Rock CD # 10441 First National Bank, Round Rock CD // 10553 First National Bank, Round Rock CD /1 852 First National Bank, Round Rock CD # 842 First National Bank, Round Rock CD // 860 First National Bank, Round Rock CD # 850 First National Bank, Round Rock CD # 10563 First National Bank, Round Rock Capital Projects Fund CD /1 851 First National Bank, Round Rock CD // 859 First National Bank, Round Rock The accompanying notes are an integral part of these financial statements. -3- 8.0 50,000 10.5 19,818 11.12 50,000 8.0 41,000 9.1 450,000 8.6 742,000 8.6 340,422 11.07 50.00.0 1,743,240 8.0 40,000 8.6 146.000 186,000 Total investments $2,044,445 CITY OF ROUND ROCK STATEMENT OF CASH RECEIPTS AND DISBURSEMENTS - ALL FUNDS FOR THE YEAR ENDED SEPTEMBER 30, 1980 Fund Balance Balance 9 -30 -79 Receipts Disbursements 9 -30 -80 General $ 81,607 $4,923,956 $4,909,481 $ 96,082 Special revenue 190 155,065 148,169 7,086 Debt service 273 293,471 293,744 -0- Capital projects 13,059 5,808,612 5,792,298 29,373 Utility 133,340 9,037,771 9,020,250 150,861 Fireman's Pension Fund 354 19 373 Total - all funds $228,823 $20,218,894 $20,163,942 $283,775 The accompanying notes are an integral part of these financial statements. -8- CITY OF ROUND ROCK COMBINED STATEMENT OF REVENUE AND EXPENDITURES ALL FUNDS FOR THE YEAR ENDED SEPTEMBER 30, 1980 Fund Balance Revenues Expenditures Fund Balance September 30, and other and other September 30, 1979 Additions Deductions 1980 General Fund $197,674 $2,286,015 $2,233,118 $250,571 Special Revenue Fund 14,047 117,832 87,463 44,416 Debt Service Fund 273 238,348 238,621 -0- Capital Projects Fund -0-- 1,611,211 1,604,944 6,267 Fireman's Pension Fund 354 19 -0- 373 Utility Fund 415,465 1,259,118. 1,105,260 569,323 Total all funds $627,813 $5,512,543 $5,269,406 $870,950 The accompanying notes are an integral part of these financial statements. - 9 - CITY OF ROUND ROCK GENERAL FUND BALANCE SHEET SEPTEMBER 30, 1980 ASSETS Cash $ 96,082 Investments in certificates of deposits and savings 119,590 Accounts receivable (net of $4,850 estimated uncollectible) 56,193 Accrued interest receivable 2,2 Due from other funds Utility fund 57,848 Special revenue fund 5,242 Prepaid expenses 7,516 Total assets $344,747 LIABILITIES AND FUND BALANCE Accounts payable $ 44,430 Accrued salaries and wages 39,631 Due to other fund 10,115 Total liabilities 94,176 Fund balance 250,571 Total liabilities and fund balance $344,747 The accompanying notes are an integral part of these financial statements. - 10 - Actual Budget Revenue Taxes $1,309,413 $1,297,275 Licenses and permits 88,463 92,900 Charges for services 272,074 255,712 Fines 84,651 68,800 Grants and contributions 127,874 126,142 Other income 101,720 53,450 Total revenue 1,984,195 1,894,279 Expenditures General government Public safety Public health Public works Culture and recreation CITY OF ROUND ROCK GENERAL FUND STATEMENT OF REVENUE AND EXPENDITURES AND CHANGES IN FUND BALANCE FOR THE YEAR ENDED SEPTEMBER 30, 1980 Total expenditures Interfund transfers Transfers from Utility Fund Transfers to Debt Service Fund Transfers from other funds Net transfers from other funds Excess of revenue over expenditures and fund transfers Fund balance September 30, 1979 Adjustment to fund balance (Note 3) Fund balance September 30, 1980 The accompanying notes are an integral part of these financial statements. 613,067 497,308 227,357 403,797 196,847 1,938,376 1,864,601 233,400 (225,206) 23.113 552,266 485,729 212,051 423,207 191,348 233,400 (224,890) 31,307 8,510 77,126 38,188 197,674 197,674 (24,229) 250,571 $ 235,862 Taxes General. property taxes Penalty and interest City sales tax Motel tax Total. taxes Fines and forfeitures Grants and contributions Gross receipts - utilities State grants CITY OF ROUND ROCK GENERAL FUND SCHEDULE OF REVENUES - BUDGET AND ACTUAL FOR THE YEAR ENDED SEPTEMBER 30, 1980 The accompanying notes are an integral part of these financial statements. - 12 - Actual Budget $ 863,951 7,199 434,464 3,799. 1,309,413 $ 887,850 6,225 400,000 3,200 1,297,275 Licenses and permits Building permits 84,832 85,000 Other 3,631 7,900 Total licenses and permits 88,463 92,900 Charges for services Trash collection 243,451 230,000 Rural fire fees 2,062 2,062 Swimming pool receipts 13,481 10,000 Recreation programs 11,633 12,000 Filing fees 1,076 1,300 Other 371 350 272,074 255,712 84,651 68,800 115,652 115,342 12 222 10,800 127,874 126,142 Other income Interest income 23,923 17,000 Insurance proceeds 11,378 Rental income 7,960 8,500 Reimbursements 8,978 8,200 Contributions 7,277 Miscellaneous 42,204 19,750 101,720 53,450 Total revenue $1,984,195 $1,894,279 Public Health Health and sanitation General Government Mayor and city council $ 6,342 $ 5,930 City Manager 35,726 35,258 City secretary 37,005 35,773 Judicial 56,150 47,995 Planning and community development 75,425 77,902 Custodian 1,345 -0- Inspection 44,158 43,380 Finance 60,832 58,425 City Hall 32,852 21,602 City Shop 68,090 68,875 Miscellaneous control Tax collection expense 46,075 46,000 Insurance 60,044 37,300 Contingency 28,378 20,000 Other expenses 60,645 53,826 Total general government 613,067 552,266 Public Safety Public safety control Fire department Fire marshall CITY OF ROUND ROCK GENERAL FUND SCHEDULE OF EXPENDITURES - BUDGET AND ACTUAL FOR THE YEAR ENDED SEPTEMBER 30, 1980 Total public safety Public works Public works control 84,846 80,480 Streets 318,951 342,727 Total public works 403,797 423,207 Culture and recreation Library 34,604 34,628 Park maintenance 118,978 107,225 Parks recreation 43,265 49,495 Total culture and recreation 196,847 191,348 Total expenditures $1,938,376 $1,864,601 The accompanying notes are an integral part of these financial statements. - 13 - Actual Budget 321,817 308,086 155,351 159,557 20,140 18,086 497,308 485,729 227,357 212,051 CITY OF ROUND ROCK STATEMENT OF CHANGES IN GENERAL FIXED ASSETS - BY FUNCTIONS AND ACTIVITIES FOR THE YEAR ENDED SEPTEMBER 30, 1980 Function and Activity General General Fixed Assets Fixed Assets 10 -1 -79 Additions Deductions 9 -30 -80 General Government: Administration $ 18,639 $ $ $ 18,639 Finance 98,809 98,809 Planning and zoning 4,570. 4,570 General government 110,266 277,977 388,743 Total general government 232 284 277,977 510,261 Public Safety Fire protection 123,691 7,351 131,042 Police protection 183,115 2,907 186,022 Inspection 13,230 5,184 18,414 City shop 7, &65 3,206 11,071 Total public saftey 327,901 18,648 346,549 Streets 6,756,583 117,066 6,873,649 Public health 129,195 48,928 178,123 Parks and recreation 1,279,553 365,514 1,645,067 Library 24,176 22,890 47,066 Construction in progress 895,399 1,433,579 40,945 2,288,033 Total general fixed assets $9,645,09.1 $2,284,602 $40,945 $11,888,748 The accompanying notes are an integral part of these financial statements. -19- CITY OF ROUND ROCK STATEMENT OF CHANGES IN GENERAL FIXED ASSETS - BY SOURCES FOR THE YEAR ENDED SEPTEMBER 30, 1980 Improvements Other Than Construction Total Land Buildings Buildings Equipment in Progress General fixed assets - September 30, 1979 $ 9,645,091 $829,500 $234,167 $7,144,587 $541,438 $ 895,399 Add: Federal grants 60,196 20,741 29,508 9,947 Capital Projects Fund 1,745,037 54,100 216,413 40,945 1,433,579 Expenditures by General Fund revei:ues 167,369 83,754 83,615 Donations 312,000 63,000 249,000 Total additions 2,284,602 117,100 237,154 403,207 93,562 1,433,579 Deduct: (40,945) Completed construction projects (40,945) General fixed assets - September 30, 1980 $11,888,748 $946,600 $471,321 $7,547,794 $635,000 $2,288,033 The accompanying notes are an integral part of these financial statements. - 20 - General obligation bonds payable Certificates of obligation payable Notes payable CITY OF ROUND ROCK STATEMENT OF GENERAL LONG -TERM DEBT SEPTEMBER 30, 1980 AMOUNT AVAILABLE AND TO BE PROVIDED FOR THE PAYMENT OF GENERAL LONG -TERM DEBT General obligation bonds and certificates of obligation Amount available in Debt Service Fund $ -0- Amount to be provided 3,025,000 Notes payable Amount,, to be provided 94,442 Total available and to be provided $3,119,442 GENERAL LONG -TERM DEBT PAYABLE Total general long -term debt payable $3,119,44.2. The accompanying notes are an integral part of these financial statements. - 21 - $2,661,000 364,000 94,442 Current assets Cash Certificates of deposits Time deposits Accounts receivable Accrued interest receivable Supplies Due from other funds ASSETS Restricted assets Revenue bond debt service - cash Revenue bond reserve Cash Investment in certificates of deposit Revenue bond construction Cash Investment in certificate of deposit Savings Customer deposits - cash Total restricted assets Utility plant in service Land Buildings Improvements other than buildings Machinery and equipment Less allowance for depreciation Construction in progress Total utility plant in service Total assets CITY OF ROUND ROCK UTILITY FUND BALANCE SHEET SEPTEMBER 30, 1980 $ 72,255 50,000 62,486 91,003 8,071 5,987 10,279 300,081 32,671 4,993 119,818 40,162 1,573,422 17,157 780 1,789,003 253,800 268,726 3,393,678 293,990 4,210,194 (565,151) 3,645,043 672,583 4,317,626 $6,406,710 The accompanying notes are an integral part of these financial statements. - 24 - LIABILITIES, RESERVES, AND RETAINED EARNINGS Current liabilities - payable from current assets Accounts payable Accrued expenses Due to General Fund Total current liabilities - unrestricted Current liabilities - payable from restricted assets Current maturities of bonds payable Current maturities of notes payable Accrued interest payable Accounts payable Due to General Fund Total current liabilities - restricted Other liabilities (net of current maturities) Revenue bonds payable Customer deposits Total other liabilities Total liabilities Reserve for revenue bond retirement Retained earnings Total liabilities, reserves and retained earnings 31,459 4,587 50,652 86,698 53,000 5,257 58,870 214,170 7,196 338,493 5,186,000 68,714 5,254,714 5,679,905 157,482 569,323 $6,406,7 Add: non- operating income Interest income Operating revenue Water sales Sewer service charges Tap fees Other income Total operating revenue Less: operating expenses before depreciation Administration Personnel services Contracted services Materials and supplies Other expenses Plant operations Personnel ser vices Contracted services Materials and supplies Other expenses Less: non- operating expenses Interest expense Transfers to General Fund CITY OF ROUND ROCK UTILITY FUND STATEMENT OF REVENUE AND EXPENSES FOR THE YEAR ENDED SEPTEMBER 30, 1980 Total operating deductions before depreciation Net operating income before depreciation Less: depreciation Net operating income Total non - operating expense The accompanying notes are an integral part of these financial statements. - 25 - Actual Budget $ 755,700 $ 649,162 238,027 220,000 157,506 155,883 16,928 1,500 1,168,161 1,026,545 59,022 31,860 12,636 17,158 120,676 164,412 115,761 67,962 7,215 59,236 26,215 10,850 12,590 108,891 159,976 82,500 74,281 12,135 355,350 328,892 476,026 437,783 692,135 588,762 116,743 575,392 588,762 90,957 2,000 226,371 225,982 233,400 233,400 459,771 459,382 Net income to retained earnings $ 206,578 $ 131,380 CITY OF ROUND ROCK UTILITY FUND STATEMENT OF SOURCES AND APPLICATIONS OF CASH FOR THE YEAR ENDED SEPTEMBER 30, 1980 Cash funds were provided by: Net operating income before depreciation $ 692,135 Non operating income 90,957 Proceedes from bond issues 1,925,000 Customer utility deposits 23,229 Increase in accounts payable and accrued expenses 200,594 Total cash funds provided 2,931,915 Cash funds were applied to: Non operating expenditures 459,771 Additions to utility plant in service 952,169 Principal reductions of bonds payable 47,000 Principal reductions of notes payable 7,028 Increase in investments 1,395,384 Increase in receivables 49,959 Net advances to other funds 3,083 Total cash funds applied 2,914,394 Increase in cash funds 17,521 Cash balance September 30, 1979 133,340 Cash balance September 30, 1980 $ 150,861 The accompanying notes are an integral part of these financial statements. - 26 - CITY OF ROUND ROCK UTILITY FUND SCHEDULE OF FIXED ASSETS AND DEPRECIATION FOR THE YEAR ENDED SEPTEMBER 30, 1980 Assets Allowance for Depreciation Balances- Balances- Balances- Balances- Net Beginning End of Beginning Depreciation End of Asset of Year Additions Deductions Year of Year Taken Year Value Land $ 253,800 $ $ $ 253,800 $ $ $ $ 253,800 Buildings: Water system 260,680 260,680 31,544 6,517 38,061 222,619 Sewer system 5,156 2,890 8,046 708 177 885 7,161 Total - Buildings 265,836 2,890 268,726 32,252 6,694 38,946 229,780 Improvements other than buildings: Water wells 481,119 481,119 59,068 27,215 86,283 394,836 Water tanks and sewer lift stations 1,063,002 151,113 1,214,115 147,107 35,959 183,066 1,031,049 Sewer treatment plant 712,831 712,831 52,392 17,821 70,213 642,618 Utility lines 772,855 212,758 985,613 126,490 18,610 145,100 840,513 Total - Improvements other than buildings 3,029,807 363,871 3,393,678 385,057 99,605 484,662 2,909,016 Machinery and equipment: Automobiles and trucks 24,045 24,045 14,679 4,275 18,954 5,091 Working equipment 60,692 209,253 269,945 16,420 6,169 22,589 247,356 Total - Machinery and equipment 84,737 209,253 293,990 31,099 10,444 41,543 252,447 Construction in progress 296,428 893,414 517,259 672,583 672,583 Totals $3,930,608 51,469,428 $517,259 $4,882,777 $448,408 $116,743 $565,151 $4,317,626 The accompanying notes are an integral part of these financial statements. - 27 - CITY OF ROUND ROCK NOTES TO FINANCIAL STATEMENTS SEPTEMBER 30, 1980 NOTE 1 - SIGNIFICANT ACCOUNTING POLICIES Basis of accounting - Prior to October 1, 1977, the records of the City were maintained on the cash receipts and disbursements basis of accounting. At October 1, 1977, the City adopted the double -entry system of accounting as required by its home rule charter. The entry to record fixed assets in the general fixed asset group of accounts and utility plant in service in the utility fund was based on an estimate of fair market value of these assets at date of acquisition and does not necessarily reflect the total actual cost of assets on hand at October 1, 1977. Similarly, the fund balances of the various funds does not necessarily reflect the cumulative activity of these funds from the beginning of their operations. Transfers between funds - transfers of cash between funds are counted as receipts by the receiving fund and disbursements by the paying fund in the year the transfer of cash is made. Revenues - revenues are recorded when cash is received except for revenues that are measurable and available as a resource that can be used to finance governmental operations during the year. Expenditures - expenditures are recorded on the accrual basis except that interest on long -term debt of the general government is treated as an expense when due. NOTE 2 - PROPERTY AND EQUIPMENT The City established a general fixed assets group of accounts, wherein all fixed asset expenditures of the General Fund and Capital Projects Fund are recorded at cost. Depreciation is not provided for assets recorded in the General Fixed Assets Group of Accounts. The original cost of such assets is removed from the accounts when the assets are sold, retired or abandoned. The Utility Fund records fixed asset purchases and completed construction projects at cost. Construction in progress in the Utility Fund is recorded in the Utility Fund. Depreciation is charged to current operations on a straight -line method using the following estimated useful lives: Estimated Useful Lives: (in years) Buildings 40 Improvements other than buildings 10 to 40 Machinery and equipment 5 to 10 No assets were retired or otherwise disposed of during the year ended September 30, 1980. - 28 - CITY OF ROUND ROCK NOTES TO FINANCIAL STATEMENTS SEPTEMBER 30, 1980 (Continued) NOTE 3 - ADJUSTMENT TO GENERAL FUND BALANCE As stated in Note 1 the City recognizes its expenditures on the accrual basis of accounting. The fund balance of the General Fund has been adjusted to reflect accrued salaries and wages for the previous reporting period which were omitted. NOTE 4 - 1980A GENERAL OBLIGATION BONDS The City sold $2,000,000 of general obligations bonds in September of 1980. The proceeds of this sale were not received until October, 1980. These bonds therefore have not been reflected as a liability in these financial statements. - 29 - 744 //.