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R-82-439 - 3/11/1982ATTEST: WHEREAS, the City Council of the City of Round Rock, Texas desires to receive bids for the purchase of its $300,000 General Obligation Bonds, Series 1982 and its $625,000 Combination Tax and Revenue Certificates of Obligation, Series 1982; 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 bonds and certificates; 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 $300,000 General Obligation Bonds, Series 1982 and $625,000 Combination Tax and Revenue Certificates of Obligation, Series 1982, 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 and certificates. PASSED AND APPROVED this the J / TN the day of March, 1982, by the City Council of the City of Round Rock, Texas, convened in A nJ session with a lawful quorum present. 4 RESOLUTION NOTICE OF SALE AND BIDDING INSTRUCTIONS ON $300,000 CITY OF ROUND ROCK, TEXAS (Williamson County) GENERAL OBLIGATION BONDS, SERIES 1982 Selling Monday, April 5, 1982, at 7:00 PM, CST THE SALE Bonds Offered for Sale at Competitive Bidding ... The City of Round Rock, Texas (the "City "), is offering for sale is $300,000 General Obligation Bonds, Series 1982 (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, CST, 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 Council 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, CST, Monday, April 5, 1982. 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 "Ordinance ") and approving the Official Statement. . THE BONDS Description ... The Bonds will be dated May 1, 1982, and interest coupons will be due on August 1, 1983, and each February 1 and August 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 Principal Year Amount Year Amount 1984 $ 25,000 1988 $ 30,000 1985 25,000 1989 35,000 1986 25,000 1990 40,000 1987 25,000 1991 45,000 1992 50,000 The Bonds are not optional for prior payment. 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 1% 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 1/2% 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 Deposit ... A Good Faith Deposit, payable to the "City of Round Rock, Texas" in the amount of $6,000.00, 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 Comptroller 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 print- ing 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 responsi- bility 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 May 10, 1982, and it is understood and agreed that the Purchaser will accept delivery and make payment for the Bonds by 10:00 AM, CDT, on May 10, 1982, or there- after on the date the Bonds are tendered for delivery, up to and including May 24, 1982. If for any reason the City is unable to make delivery on or before May 24, 1982, then the City shall immediately contact the Purchaser and offer to allow the Purchaser to extend his offer for an additional thirty days. If the Purchaser does not elect 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 the 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. 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 Instruc- tions. 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 necesary. 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 remain- ing $2,530,000 aut prized general obligation bonds at this time. Ratings ... The outstanding General Obligation Bonds of the City are rated "A" 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. Municipal Bond Insurance ... In the event these Bonds are qualified for municipal bond insurance, and the Purchaser desires to purchase such insurance, the cost therefor will be paid by the Purchaser. 25 The Official Statement ... The City will furnish to the Purchaser, without os, amend- copies of the Officiaf Statement (and 25 copies of any addenda, supplement or ment thereto), complete 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 responsibility, 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 Statment, as available over and above the normal mailing, may be obtained at the offices of First Southwest Company, Investment Bankers, 800 Mercantile Dallas 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 llth day of March, 1982, approved the form 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 authoriz- ing 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. LARRY L. TONN Mayor ATTEST: JOANNE LAND City Secretary March 11, 1982 Average Maturity BOND YEARS Accumulated Year Amount Bond Years Bond Years Year 1984 $25,000 56.25 56.25 1984 1985 25,000 81.25 137.50 1985 1986 25,000 106.25 243.75 1986 1987 25,000 131.25 375.00 1987 1988 30,000 187.50 562.50 1988 1989 35,000 253.75 816.25 1989 1990 40,000 330.00 1,146.25 1990 1991 45,000 416.25 1,562.50 1991 1992 50,000 512.50 2,075.00 1992 6.916. Years NOTICE OF SALE AND BIDDING INSTRUCTIONS ON $625,000 CITY OF ROUND ROCK, TEXAS (Williamson County) COMBINATION TAX AND REVENUE CERTIFICATES OF OBLIGATION, SERIES 1982 Selling Monday, April 5, 1982, at 7:00 PM, CST THE SALE Certificates Offered for Sale at Competitive Bidding .. The City of Round Rock, Texas (the "City "), is offering for sale its $625,000 Combination Tax and Revenue Certificates of Obligation, Series 1982 (the "Certificates "). Address of Bids ... Sealed bids, plainly marked "Bid for Certificates ", should be addressed and delivered to "Mayor and City Council, City of Round Rock, Texas ", prior to 7:00 PM, CST, on the date of the bid opening. All bids must be submitted on the Official Bid Form, without alteration or interlinenation. Place and Time of Bid Opening ... The City Council will open and publicly read the bids for the purchase of the Certificates at the City Hall Chambers, 214 East Main, Round Rock, Texas, at 7:00 PM, CST, Monday, April 5, 1982. Award of the Certificates ....The City Council will take action to award the Certificates (or reject all bids) promptly after the opening of bids, and adopt an Ordinance authoriz- ing the Certificates (the "Ordinance ") and approving the Official Statement. THE CERTIFICATES Description ... The Certificates will be dated May 1, 1982, and interest coupons will be due on August 1, 1983, and each February 1 and August 1 thereafter until the earlier of maturity or prior redemption. The Certificates 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 Certificates will mature serially on August 1 in each year as follows: Principal Principal Principal Year Amount Year Amount Year Amount X994 $ 20,000 "DM $ 35,000 1993 $ 55,000 1985 20,000 1990 40,000 1994 60,000 1986 25,000 1991 45,000 1995 70,000 1987 25,000 1992 50,000 1996 70,000 1988 30,000 1997 80,000 The City reserves the right, at its option, to redeem Certificates maturing August 1, T993, through August 1, 1997, both inclusive, in whole or any part thereof, on August 1, T992 or any interest payment date thereafter, at the par value thereof plus accrued interest to the date fixed for redemption.. Source of Payment ... The Certificates are direct 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, and a pledge of surplus revenues of the City's outstanding Water and Sewer System Revenue Bonds. CONDITIONS OF THE SALE Types of Bids and Interest Rates ... The Certificates will be sold in one block on an "A11 or None" basis, and at a price of not less than their par value plus accrued interest to the date of delivery of the Certificates. Bidders are invited to name the rate(s) of interest to be borne by the Certificates, provided that each rate bid must be in a multiple of 1/8 of 11/4 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 1/2% in coupon rate. No limitation is imposed upon bidders as to the number of rates or coupon changes which may be used. All Certificates 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 Certificates, 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 Certificates from the date thereof to their respective maturities, using the table of Bond Years herein, and deducting there- from 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 Certificates 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 Deposit ... A Good Faith Deposit, payable to the "City of Round Rock, Texas" in the amount of $12,500.00, 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 Certifi- cates. No interest will be allowed on the Good Faith Deposit. In the event the Pur- chaser should fail or refuse to take up and pay for the Certificates 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 Certificates has been made. DELIVERY OF THE CERTIFICATES AND ACCOMPANYING DOCUMENTS Printed Certificates ... The City will furnish printed Certificates which will be executed by the facsimile signatures of the Mayor and Secretary of the City, and by the manual signature of the Comptroller of Public Accounts of the State of Texas. The Certificates 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 Certificates, but neither the failure to print such number on any Certificates 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 Certificates 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 Certificates 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 Certificates will be tendered for delivery to the Purchaser at any bank in Austin, Texas, at the expense of the City. Payment for the Certificates 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 Certificates. It is anticipated that delivery can be made on or about May 10, 1982, and it is understood and agreed that the Purchaser will accept delivery and make payment for the Certificates by 10:00 AM, CDT, on May 10, 1982, or thereafter on the date the Certificates are tendered for delivery, up to and including May 24, 1982. If for any reason the City is unable to make delivery on or before May 24, 1982, then the City shall immediately contact the Purchaser and offer to allow the Purchaser to extend his offer for an additional thirty days. If the Purchaser does not elect 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 Certificates 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 Certificates 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 litigation certificate, and (c) the certification as to the Official Statement, all as further described in the Official Statement. Legal Opinions ... The Certificates 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 the Certificates. Certification of Official Statement ... At the time of payment for and delivery of the Certificates, the City will execute and deliver to the Purchaser a certificate in the form set forth in the Official Statement. Change in Tax Exempt Status ... At any time before the Certificates are tendered for delivery, the Purchaser may withdraw his bid if the interest received by private holders from Certificates 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 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 Certificates. Blue Sky Laws ... By submission of his bid, the Purchaser represents that the sale of the Certificates in states other than Texas will be made only pursuant to exemptions from registration or, where necessary, the Purchaser will register the Certificates in accordance with the securities law of the states in which the Certificates are offered or sold. The City agrees to cooperate with the Purchaser, at the Purchaser's written request and expense, in registering the Certificates 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 Certificates, but is merely notice of the sale of the Certificates. The offer to sell the Certificates is being made by means of the Notice of Sale and Bidding Instruc- tions, 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 Certificates. Issuance of Additional General Obligation Debt ... The City has no plans for the issuance of additional combination tax and revenue certificates of obligation or general obligations bonds at this time. Ratings ... The outstanding General Obligation Bonds of the City are rated "A" by Moody 's Investors Service, Inc. and "BBB +" by Standard & Poor's Corporation. Applica- tions 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. Municipal Bond Insurance ... In the event these Certificates are qualified for municipal bond insurance, and the Purchaser desires to purchase such insurance, the cost therefor will be paid by the Purchaser. 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), complete except as to interest rates and other terms relating to the reoffer- ing of the Certificates. 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 responsibility, 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 Certificates. 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, 800 Mercantile Dallas Build- ing, 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 llth day of March, 1982, approved the form 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 Certificates. On the date of the sale, the City Council will, in the Ordinance authoriz- ing the issuance of the Certificates, 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 Certificates by the Purchaser. LARRY L. TONN Mayor ATTEST: JOANNE LAND City Secretary March 11, 1982 Average Maturity BONO YEARS Accumulated Year Amount Bond Years Bond Years Year 1984 $ 20,000 45.00 45.00 1984 1985 20,000 65.00 110.00 1985 1986 25,000 106.25 216.25 1986 1987 25,000 131.25 347.50 1987 1988 30,000 187.50 535.00 1988 1989 35,000 253.75 788.75 1989 1990 40,000 330.00 1,118.75 1990 1991 45,000 416.25 1,535.00 1991 1992 50,000 512.50 2,047.50 1992 1993 55,000 618.75 2,666.25 1993 1994 60,000 735.00 3,401.25 1994 1995 70,000 927.50 4,328.75 1995 1996 70,000 997.50 5,326.25 1996 1997 80,000 1,220.00 6,546.25 1997 10.474 Years This Official Statement does not constitute an offer to sell Bonds in any jurisdiction to any person to whom it is 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, such information or representation must not be relied upon. The information and expressions of opinion herein are subject to change without notice and neither the delivery of this Official Statement nor any sale made hereunder shall, under any circumstances, create any implication that there has been no change in the affairs of the City since the date hereof. OFFICIAL STATEMENT Dated March 11, 1982 INTEREST EXEMPT, IN THE OPINION OF BOND COUNSEL, FROM PRESENT FEDERAL INCOME TAXES UNDER EXISTING STATUTES, REGULATIONS, RULINGS AND COURT DECISIONS $300,000 CITY OF ROUND ROCK, TEXAS (Williamson County) GENERAL OBLIGATION BONDS, SERIES 1982 Dated: May 1, 1982 Denomination: $5,000 Principal and semi - annual interest (February 1 and August 1) payable at Farmers State Bank, Round Rock, Texas, or, at the option of the holder, at First City Bank of Dallas, Dallas, Texas. First interest coupon due August 1, 1983. Coupon bearer bonds, not registrable. These bonds (the "Bonds ") are the fourth installment of bonds authorized at an election held September 6, 1980, and constitute direct and voted general obligations of the City, payable from an ad valorem tax levied, within the limits prescribed by law, on taxable property located within the City. MATURITY SCHEDULE Amount Matt Rate Yield Amount Maturity Rate Yield 25,000 35,000 8 -1 -1989 25,000 8 -1 -1985 40,000 8 -1 -1990 25,000 8 -1 -1986 45,000 8 -1 -1991 25,000 8 -1 -1987 50,000 8 -1 -1992 30,000 8 -1 -1988 The Bonds are not optional for prior payment. Payment Record: The City has never defaulted. Legality: Attorney General of the State of Texas, and Messrs. McCall, Parkhurst & Horton, Attorneys, Dallas, Texas. (Opinion Printed on the Bonds; See Legal Opinions.) Delivery: Anticipated on or about May 10, 1982. This Official Statement does not constitute an offer to sell Certificates in any juris- diction to any person to whom it is 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 Certificates, and if given or made, such information or represenation must not be relied upon. The information and expressions of opinion herein are subject to change without notice and neither the delivery of this Official Statement nor any sale made hereunder shall, under any circumstances, create any implication that there has been no change in the affairs of the City since the date hereof. OFFICIAL STATEMENT Dated March 11, 1982 INTEREST EXEMPT, IN THE OPINION OF BOND COUNSEL, FROM PRESENT FEDERAL INCOME TAXES UNDER EXISTING STATUTES, REGULATIONS, RULINGS AND COURT DECISIONS $625,000 CITY OF ROUND ROCK, TEXAS (Williamson County) COMBINATION TAX AND REVENUE CERTIFICATES OF OBLIGATION, SERIES 1982 Dated: May 1, 1982 Denomination: $5,000 Principal and semi - annual interest (February 1 and August 1) payable at Farmers State Bank, Round Rock, Texas, or, at the option of the holder, at First City Bank -of Dallas, Dallas, Texas. First interest coupon due August 1, 1983. Coupon bearer Certificates, not registrable. These Certificates (the "Certificates ") are direct obligations of the City of Round Rock, Texas, payable out of the receipts from an ad valorem tax levied, within the limits prescribed by law, on taxable property located within the City, and a pledge of surplus revenues of the City's Waterworks and Sewer System, after deduction of reasonable expenses of operation and maintenance and debt service on the City's outstanding Water and Sewer System Revenue Bonds. - MATURITY SCHEDULE Amount Maturity Rate Yield Amount Maturity Rate Yield 20,000 8 -1 -1984 45,00 8 -1 -1991 20,000 8 -1 -1985 50,000 8 -1 -1992 25,000 8 -1 -1986 55,000 8 -1 -1993* 25,000 8 -1 -1987 60,000 8 -1 -1994* 30,000 8 -1 -1988 70,000 8 -1 -1995* 35,000 8 -1 -1989 70,000 8 -1 -1996* 40,000 8 -1- 1990 80,000 8 -1 -1997* * The City reserves the right, at its option, to redeem Certificates maturing August 1, 1993, through August 1, 1997, both inclusive, in whole or any part thereof, on August 1, 1992, or any interest payment date thereafter, at the par value thereof plus accrued interest to the date fixed for redemption. Payment Record: The City has never defaulted. Legality: Attorney General of the State of Texas, and Messrs. McCall, Parkhurst & Horton, Attorneys, Dallas, Texas. (Opinion Printed on the Certificates; See Legal Opinions.) Delivery: Anticipated on or about May 10, 1982. TABLE OF CONTENTS Official Statement: Page Elected Officials 3 Appointed Officials 3 Consultants and Advisors 3 Introductory Statement 4 Valuation and Debt Information 5 Ad Valorem Taxation 6/7 Non- Funded Debt 8 Funded Debt Limitation 8 Valuation and Funded Debt History 8 Taxable Assessed Valuations by Category 9 Estimated Future Assessed Valuations 10 Estimated Overlapping Funded Debt Payable From Ad Valorem Taxes 10 Tax Rate Limitation 10 Tax Data 10 /11 Municipal Sales Tax 11 Assessed Valuations and Tax Rates of Overlapping Taxing Jurisdictions 11 Proceeds of the Bonds 11 Proceeds of the Certificates of Obligation 12 Top Ten Taxpayers 12 Tax Adequacy 12 Interest and Sinking Fund Management Index 12 Debt Service 13 Authorized General Obligation Bonds 14 Anticipated Issuance of Voted General Obligation Bonds 14 Computation of Self- Supporting Debt-- 14 Pension Fund 14 Coverage and Fund Balances 14 Condensed Statement of Operations - Waterworks and Sewer System 15 Waterworks System 15/17 Top Ten Water Customers 17 Sewerage System 17 Old Monthly Sewer Rates 17 New Monthly Sewer Rates 18 General Information Regarding City and Its Economy 19/20 Ratings 21 Tax Exemption 21 Registration and Qualification of Bonds and Certificates for Sale 21 Legal Investments in Texas 21 Legal Opinions and No- Litigation Certificate 21 Authenticity of Financial Information 22 Financial Advisor 22 Certification of the Official Statement 22 Appendix -2- Name Elected or Term City Council Appointed Expires Occupation Larry L. Tonn April 1977 April 1984 exas State Department of Human Mayor Resources 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 Robert L. "Bob" Bennett, Jr. Joanne Land Sam Huey Stephan L. Sheets Jack Harzke Dusty Thames ELECTED OFFICIALS APPOINTED OFFICIALS Position and Length of Time in Position City Manager for 3 Years City Secretary for 51 Years Director of Finance for 4 Years City Attorney for 41/2 Years Director of Public Works for 11 Years Tax Assessor - Collector for 1 Year CONSULTANTS AND ADVISORS Length of Employment with City 51 Years 11 Years 4 Years 41 Years 11 Years 1 Year Auditors Hood, Wolf & Company Round Rock, Texas Consulting Engineers Haynie & Kallman, Inc. Round Rock, Texas Bond Counsel McCall, Parkhurst & Horton Dallas, Texas Financial Advisor First Southwest Company Dallas, Texas -3- 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 $300,000 General Obligation Bonds, Series 1982 (the "Bonds ") and $625,000 Combination Tax and Revenue Certificates of Obligation, Series 1982 (the "Certificates "). The Official Statement was prepared to present for the purchasers information concern- ing the Bonds and Certificates, the revenues (ad valorem taxes and surplus revenues of the utility system) pledged to the Bonds and Certificates, 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 suf- ficient 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. The Certificates are direct obligations, payable out of the receipts from the ad valorem tax levied, within the limits prescribed by law, on taxable property located within the City, and a pledge of surplus revenues of the City's Waterworks and Sewer System, after deduction of reasonable expenses of operation and maintenance and debt service on the City's outstanding Water and Sewer System Revenue Bonds. Purpose ... The proceeds from the sale of the $300,000 General Obligation Bonds, Series 1982 will be used to fund the purchase of a new firetruck. The proceeds from the sale of the $625,000 Combination Tax and Revenue Certificates of Obligation, Series 1982 will be used to fund various capital improvements to the Waterworks and Sewer System (see proceeds). Future Bond Issues ... After the issuance of the Bonds and Certificates, the City will have $2,530,000 authorized general obligation bonds to be issued. The City does not have any plans to issue the remaining authorized general obligation bonds or any other tax supported Certificates of Obligation at this time. Administration of the City ... The City operates under a Home 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 adminis- tration of the affairs of the City. -4- VALUATION AND DEBT INFORMATION 1981 Taxable Assessed Valuation (100% of Market Valuation) Less Exemptions at 100% of Market Valuation (1) (2): Over 65 Homestead Exemptions $2,850,581 Disabled and Deceased Veterans 204,552 Agricultural Productivity Exemption 217,625 1981 Net Taxable Assessed Valuation (100% of Market Valuations) City Funded Debt Payable From Ad Valorem Taxes: General Purpose Bonds (as of 3 -1 -82) Waterworks and Sewer System Bonds (as of 3 -1 -82) Combination Tax and Revenue Certificates of Obligation (as of 3 -1 -82) The Bonds, Series 1982 The Certificates of Obligation, Series 1982 Total General Obligation Debt Less Self - Supporting Debt: Combination Tax and Revenue Certificates of Obliga- tion (Includes these Certificates) $910,000 Waterworks and Sewer System General Obligation Bonds 49,268 Net Funded Debt Payable From Ad Valorem Taxes (3) Interest and Sinking Fund (as of 3 -1 -82) Ratio Net Funded Debt Payable From Ad Valorem Taxes to 1981 Net Taxable Assessed Valuation 1982 Estimated Population - 14,900* 1980 U.S. Census Population - 12,764 Per Capita 1981 Net Taxable Assessed Valuation - $22,563.41 Per Capita Net Funded Debt Payable From Ad Valorem Taxes - $915.35 Area - 9.21 Square Miles * Source: Chamber of Commerce. (1) Pursuant to authority permitted tion, which became effective January an exemption of not less than $3,000 property owners over 65 years of age does not include $2,850,581 Assessed -5- $339,467,621 3,272,758 $336,194,863 $ 4,430,140 8,957,860 285,000 300,000 625,000 $ 14,598,000 959,268 $ 13,638,732 $ 394,888 4.06% by Section 1 -b, Article VIII of the State Constitu- 1, 1973, the City, beginning in 1975, has granted of Assessed Valuation to the residence homestead of The Net Taxable Assessed Valuation, as shown above, Valuation of properties exempted under this authority. (2) 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 $204,552 Assessed Valuation of properties exempted under this authority. (3) The above statement of indebtedness does not include $4,818,000 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. AD VALOREM TAXATION The Certificates are payable from ad valorem taxes levied upon all taxable property within the City. The "Property Tax Code" (V.T.C.A., Tax Code), adopted in 1979, is a codification of Texas law as to ad valorem taxation and reference is hereby made thereto for identification of property subject to taxation; property exempt from taxation and other exemptions granted and allowed, if claimed; the appraisal of property for purposes of taxation and the procedures to be followed and limitations applicable to the levy and collection of ad valorem taxes. Among other features, the Property Tax Code provides for: 1 A single Appraisal District in each County of the State to appraise property for purposes of taxation for all taxing units located wholly or partly within the County beginning January 1, 1982. 2. All property to be assessed at 100% of its appraised value and prohibits the assessment of property for taxation on the basis of a percentage of its appraised value. 3. An increase in the effective tax rate of a taxing unit to be limited to not more than 5% except by a referendum vote. In calculating the effective tax rate, taxes for bonds or other contractual obligations are excluded. Recent amendments (Chapter 13, Acts of the 67th Legislature, First Called Session, 1981) to the Property Tax Code (designed to clarify and remedy technical flaws experienced in implementing various provisions thereof) provide for: 1. Postponement of full implementation of an Appraisal District's operations, on a local option basis, until 1983 or 1984. 2. Mandatory county participation in the Appraisal District. 3. Changes the provisions relating to an effective annual tax increase being subject to a referendum election by: a. Raising the amount of the annual tax increase necessary to trigger a referendum election to 8 %; b. Reducing the number of qualified voters necessary to petition for a referendum election to 10 %; c. Extending the period available to collect signatures on a petition for a referencum election to 90 days; d. Eliminating the requirement that a minimum of 25% of the qualified voters must vote in a referendum election to be valid. 4. The State Property Tax Board to conduct an annual ratio study in each Appraisal District to determine the degree of uniformity of appraisals and the weighted average level of appraisals within each major kind of property (effective 1- 1 -84). 5. An increase in penalties for delinquent taxes. The new penalties are: a. 6% - First month 1% - Additional penalty each month through June 12% - All delinquencies on July 1 regardless of delinquency period; b. A taxing unit may add an additional penalty to a maximum of 15% of taxes, penalty and interest due in order to defray costs of tax attorneys. 6. An increase in interest charged on delinquent taxes. The new interest charges are: a. 1% - First month; and b. An additional 1% increase each month thereafter. -6- 7. Property within the Appraisal District to be reappraised at least once every 4 years (effective 1- 1 -84). 8. The establishment and application of uniform discovery and appraisal proce- dures on all types of business inventories without regard to the nature of the property comprising the inventory. 9. An increase for the first time in the appraised value of property above its 1981 assessed value in any year from 1982 through 1985, which may be, at the option of the local taxing unit, limited to 1 1/2 times the percentage of increase in the value of all other property on the unit's tax rolls. 10. Changes in the composition and selection of board members, the allocation of Appraisal District costs, the size of the Appraisal Review Board and the financial accountability of Appraisal District. 11. Local taxing units to challenge the Appraisal Review Board's appraisals and judicial review of challenges, and authorizes local taxing units of an Appraisal District to overturn and veto actions of the Board of Directors of the Appraisal District. 12. Changes in the procedures and requirements pertaining to tax increases by local taxing units. The Property Tax Code as Applied to the City of Round Rock 1. The Williamson County Appraisal District is governed by a Board of 5 directors appointed by the governing bodies of Williamson County and the cities and school districts in the Appraisal District, with votes allocated as provided by statutes. Costs are allocated among the taxing entities pro -rated by tax levy. 2. For 1981, the City of Round Rock assesses property on the basis of of appraised values using City Tax Office appraisals. The Williamson County Appraisal District will assume appraisal responsibility in January, 1983; a reappraisal of all property in the County is being developed with completion scheduled for September, 1982. A constitutional amendment concerning homestead property exemptions was submitted to, and adopted by, the voters of the State of Texas on November 3, 1981. Such amendment provides local governments the option of granting homestead exemptions of up to 40% of market value for the 1982 through 1984 tax years, up to 30% of market value for the 1985 through 1987 tax years, and up to 20% of market value thereafter. Minimum exemp- tion is $5,000. The amendment further provides that taxes may continue to be levied against the value of the homestead exempted where ad valorem taxes have been previously pledged for the payment of debt, if cessation of the levy would impair the obligation of the contract by which the debt was created. The Qity Council of the City of Round Rock has not acted to grant this exemption. -7- Note Payable To Capital City Leasing Capital City Leasing Xerox Bank of San Antonio Bank of San Antonio First National Bank, Round Rock TOTAL * * * Fiscal Period 1969 -70 1970 -71 1971 -72- 1972 -73 1973 -74 1974 -75 1975 -76 1976 -77 1977 -78 1978 -79 1979 -80 1980 -81 1981 -82 NON- FUNDED DEBT (As of 3 -1 -81) Interest Monthly Outstanding For Rate Payment_ Balance Computer System 1 1,709.00 $ 71,772 Sanitation Truck 11.5% 906.00 31,211 Copier 8.0% 260.03 5,971 Sanitation Truck 7.5% 480.00 7,468 Sanitation Truck 7.5% 135.00 5,556 Sewer Machine 6.97% 297.58 631 $122,609 FUNDED DEBT LIMITATION There is no direct debt limitation in the City Charter or under State Law. The City operations 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 Assessed at End Assessed Valuation of Year Valuation $ 1,793,304 $ -0- -0- 3,172,251 50,000 1.58% 3,351,067 50,000 1.49% 3,866,766 47,000 1.22% 4,702,701 44,000 .94% 8,164,643 * 494,000 6.05% 13,688,321 486,000 3.55% 26,499,472* 473,000 1.78% 40,025,430 459,000 1.15% 56,876,557 2,395,000 4.21% 127,212,478* 5,025,000 3.95% 173,893,546 13,689,000 7.87% 336,194,863 ** 14,518,000 4.32% Increased basis of assessment as follows: 1970 -71 from 20% to 30 %; from 30% to 40 %; 1976 -77 from 40% to 60 %; 1979 -80 from 60% to 100 %. Revaluation program. -8- 1975 -76 TAXABLE ASSESSED VALUATIONS BY CATEGORY 1981* % of 1980 % of 1979** % of 1978 % of Taxable Taxable Taxable Taxable Taxable Taxable Taxable Taxable Assessed Assessed Assessed Assessed Assessed Assessed Assessed Assessed Classification Valuation Valuation Valuation Valuation Valuation Valuation Valuation Valuation Real Estate: Land $ 80,174,157 23.62% $ 31,497,936 18.00% $ 25,212,180 19.60% $11,346,559 19.73% Improvements 205,470,523 60.53% 111,849,332 63.91% 88,583,241 68.87% 36,807,005 64.01% $285,644,680 84.15% $143,347,268 81.91% $113,795,421 88.47% $48,153,564 83.74% Personal Property 53,822,941 15.85% 31,666,427 18.09% 14,826,547 11.53% 9,352,373 16.26% Total Assessed Valuation $339,467,621 100.00% $175,013,695 100.00% $128,621,968 100.001 $57,505,937 100.00% Less: Over -65 Exemptions 2,850,581 868,641 1,312,490 556,880 Disabled and Deceased Veterans Exemptions 204,552 •94,000 -0- -0- Agricultural Exemptions 217,625 157,508 97,000 72,500 Total Net Taxable Assessed Valuation $336,194,863 * Revaluation Program. ** Increase in basis of assessment from 60% to 100 %. $173',893,546 $127,212,478 $56,876,557 1982 $385,000,000 1983 450,000,000 1984 520,000,000 * Source: City Planning Department. ESTIMATED FUTURE ASSESSED VALUATIONS* 1985 1986 $595,000,000 675,000,000 ESTIMATED OVERLAPPING FUNDED DEBT PAYABLE FROM AD VALOREM TAXES (As of 3 -1 -82) Estimated Total % Overlapping Taxing Jurisdiction Funded Debt Applicable Funded Debt City of Round Rock $14,598,000 100.00% $14,598,000 Round Rock Indpendent School District 43,137,000 27.39% 11,815,224 Williamson County -0- 20.32% -0- Brushy Creek Water Control and Improvement District No. 1 -0- 6.48% -0- Total Overlapping Funded Debt $26,413,224 Ratio Overlapping Funded Debt to 1981 Net Taxable Assessed Valuation 7.86% Per Capita Overlapping Funded Debt - $1,772.70 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) Tax Tax General Interest and % Current % Total Year- Rate Fund Sinking Fund Tax Levy Collections Collections 97T 0 $1.250 $1.2500 $ -0 -* $ 39,653 80.91% 100.94% 1971 -72 1.250 1.2500 -0- 41,888 83.15% 96.59% 1972 -73 1.250 1.2500 -0- 48,335 82.32% 94.10% 1973 -74 1.250 1.2500 -0- 58,784 84.36% 98.95% 1974 -75 1.250 1.2500 -0- 102,058 79.33% 93.97% 1975 -76 1.250 1.2500 -0- 171,104 81.54% 93.22% 1976 -77 0.850 0.8500 -0- 225,246 94.01% 98.99% 1977 -78 0.850 0.8500 -0- 334,775 90.46% 92.40% 1978 -79 0.850 0.7700 0.0800 480,013 93.27% 97.73% 1979 -80 0.700 0.5555 0.1445 871,347 94.90% 99.05% 1980 -81 0.770 0.6100 0.1600 1,338,980 93.12% 96.39% 1981 -82 0.488 0.0237 0.4643 1,640,630 (In process of collection) * 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. Current collections represent collections to delinquent date only, for years prior to the 1976 -77 tax year. Low collections for 1977 through 1980 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. -10- Penalty and interest charges for late payment increased on January 1, 1982, as follows: New Charges Old Charges Month Month Paid Penalty Interest Total Paid Penalty Interest Total February 6% % 7% February 1% 1 of 1% 11/2% March 7% 2% 9% March 2% 1% 3% April 8% 3% 11% April 3% 11/2% 41% May 9% 4% 13% May 4% 2% 6% June 10% 5% 15% June 5% 21% 72% July 12% 6% 18% July 8% 3% 11% After July, penalty remains at 12 %, interest increase 1% each month. After July, peanity remains at 8 %, ineterest increases z% of 1% each month. MUNICIPAL SALES TAX (Effective 4 -1 -68) 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 enforce - ments 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 36,850 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 1979 359,758 41.29% .2828 1980 435,689 32.53% .2505 1981 512,291 31.22% .1524 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 1981 1981 Assessed % of Tax Valuation Actual Rate $ 296,713,965 100.00 %* 1.20 1,227,357,023 100.00% .90 34,178,725 25.00% ** * The County increased their basis of assessment from 31.25% to 100.00% as required by law, but left all values on their tax roles the same. Valuation stated above is 3T.25% of true market value. ** The District has not levied a tax since the 1972 Tax Year. The Assessed Valuation mown represents the District's 1972 valuation. PROCEEDS OF THE BONDS The proceeds fromthe sale of the $300,000 General Obligation Bonds, Series 1982 will be used to fund the purchase of one fire truck. PROCEEDS OF THE CERTIFICATES OF OBLIGATION The proceeds of the sale of the $625,000 Combination Tax and Revenue Certificate of Obligation, Series 1982 will be used to fund the following Waterworks and Sewer System projects: Brushy Creek Interceptor Lake Creek Interceptor Lake Creek Force Main Manhole Rehabilitation 6" Sewer Line 8" Water Line (Mesa Ridge) Engineer Bid Alternate Fee Non - Construction Costs (Legal and Fiscal) Total Project Costs Name of Taxpayer McNeil Consumer Products Co. B -J Hughes, Incorporated Southwestern Bell Telephone Co. Farmers State Bank Allied Development Co. Texas Power & Light Co. Sweet Publishing Co. Round Rock, Ltd. Bennett Barnes Stokes Cable Vision TOP TEN TAXPAYERS Nature of Property Pharmaceutical Manufacturer Oil Field Tools Telephone Utility Bank Home Developers Electric Utility Publishing Company Home Developers Shopping Center Cable Television TAX ADEQUACY 1981 Net Taxable Assessed Valuation All General Obligation Debt (including these Certificates of Obligation and Bonds, Series 1982) 1982 Principal and Interest Requirements $0.454 Tax Rate @ 95% Collection Produces Average Annual Principal and Interest Requirements, 1982 -2007 $0.339 Tax Rate @ 95% Collection Produces General Purpose Debt (including these Bonds, Series 1982) 1982 Principal and Interest Requirements $0.169 Tax Rate @ 95% Collection Produces Average Annual Principal and Interest Requirements, 1982 -2007 $0.116 Tax Rate @ 95% Collection Produces -12- Estimated Costs $230,000 163,000 115,500 10,000 27,500 27,000 20,000 32,000 $625,000 1981 Net Taxable Assessed Valuation $11,460,170 10,752,540 4,664,360 3,200,000 3,180,668 2,937,420 2,935,400 2,537,813 2,520,487 2,120,480 $4 ,309,338 % of 1981 Net Taxable Assessed Valuation 3.41% 3.20% 1.39% .95% .95% .87% .87% .76% .75% .63% 13.78% $336,194,863 $ 1,449,698 1,450,008 $ 1,081,063 $ 1,082,716 $ 537,406 $ 539,761 $ 368,787 $ 370,487 INTEREST AND SINKING FUND MANAGEMENT INDEX General Obligation Debt Service Requirements, Fiscal Year Ending 9- 30 -82 - $ 1,428,447* Interest and Sinking Fund, All General Obligation Issues, $ 137,119 9 -30 -81 1981 Interest and Sinking Fund Tax Levy @ 95% Collection 1,482,905 1,620,024 Estimated Suprlus * Less $21,251 payment for 1982 on Combination Tax and Junior Lien Revenue Certificates of Obligation which are self- supporting. $ 191,577 DEBT SERVICE REQUIREMENTS Grand Total Less: Combs- Less: Water General , 000 nation Tax and Sewer Grand Total Fiscal Year Obligation and Revenue System General General Pur- % of _ ___ The Bonds ._ 9 Princi al T2 t m E $ $ Ending Outstanding Debt 300 625 000 Debt Certificates Obligation pose Debt P 9 -30 Principal Interest Total r nc pa nteres To to r nc pa nterest * Tota Requirements of Obligation Bonds Requirements Retired $ 91,000 $ 1,358,698 $ 1,449,698 $ E 1.449,698 $ 21,251 $ 891,041 $ 537,406 1983 320,000 954,248 1,274,24.. 45,000 45000 95,703 95,703 1.414,951 127,910 851,299 435,742 1984 377.000 932,148 1,309,148 25.000 36.000 61,000 20,000 76.563 96.563 1,466,111 121,824 867,821 477.066 1985 412,000 904.591 1,316,591 25,000 33,000 58,000 20,000 74,113 94,113 1,468,104 128.526 874,142 466,036 1986 447,000 874,401 1,321,401 25,000 30.000 55,000 25,000 71,663 96.663 1,473,064 129,946 460,156 12.23% 1987 487,000 842,206 1.329,206 25,000 27,000 52,000 25,000 68,600 93,600 1,474.806 882,962 125,753 900,178 448,875 1988 532,000 807,615 1,339,615 30,000 24.000 54,000 136,191 30,000 65.538 95,538 1,489,153 131,420 919,682 438,051 1989 592,000 770,636 1,362,636 35,000 20,400 55,400 35,000 61,863 96,863 1,514,899 923,077 455,631 1990 647,000 730,301 1,377,301 40,000 16.200 56,200 40,000 57.575 97,575 1,531,076 135,207 942,319 453,550 1991 697,000 685,646 1,382,696 45,000 11.400 56.400 45,000 52,675 97,675 1,536.771 133,611 877,655 525,505 34.84% 1992 772,000 637,648 1.409,648 50,000 6,000 56,000 896,534 50,000 47.163 97.163 1,562,811 131,403 534,874 7, 1993 822,000 583,433 1,405,433 55,000 41,038 96.038 1,501,471 128,562 888,684 404,205 1994 887,000 527,513. 1,414,513 60.000 34,300 94.300 1,508,813 125,148 912,125 471,540 70,000 26,950 96,950 1,506,930 96,950 911.752 498,228 1995 942,000 467,980 1.409.980 70,000 18,375 88,375 1,507,215 68,375 943,465 475,375 67.655 1996 1,017,000 401,840 1,418,840 80,000 9,800 89,800 1,513,190 89,800 946,359 1,062,324 477,031 1997 1,092,000 331,390 1,423,390 1,397,197 923,270 473,927 1998 1,142,000 255,197 1,397,197 i 446,206 1999 887,000 175,324 1,062,324 780,300 332.154 448,146 2000 672,000 108,300 780,300 527,825 338,033 189,792 97.39% 2002 172,000 22.850 2001 472,000 55,825 527,825 194,850 94,850 14,715 180,135 194.850 13,898 176,477 2003 178,000 12,375 190,375 24,600 24,600 2004 23,000 1,600 24.600 3,450 616,118 450 3,450 2005 3,000 450 3,450 3,300 3,300 99.97% 2006 3,000 300 3,300 3.150 3,150 100.00% 2007 3,000 150 3,150 _ $13,689,000 612,442,115 526,131,715 $300,000 8249.000 8549,000 $625,000 x$801.919 E1 ,426,919 828,107,634 $1,851,897 • 816,667,283 $ 9,588,454 *NOTE: INTEREST HAS BEEN CALCULATED AT A RATE OF 12.00% FOR PURPOSES OF ILLUSTRATION. * *NOTE: INTEREST HAS BEEN CALCULATED AT A RATE OF 12.250 FOR PURPOSES OF ILLUSTRATION. AUTHORIZED GENERAL OBLIGATION BONDS Amount Amount Date Amount Heretofore Being Unissued Purpose Authorized Authorized Issued Issued Balance Streets and Right -of -Way 12 -2 -78 $ 2,775,000 $ 2,205,000 $ 0 $ 570,000 Park 12 -2 -78 240,000 175,000 0 65,000 Fire Station 12 -2 -78 1,265,000 655,000 300,000 310,000 North Fork Project 9 -6 -80 10,000,000 8,415,000 0 1,585,000 $14,280,000 $11,450,000 $300,000 $2,530,000, ANTICIPATED ISSUANCE OF VOTED GENERAL OBLIGATION BONDS The City does not have any plans to issue the remaining $2,530,000 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 -81 Less: Revenue Bond Requirements, 1982 Fiscal Year Balance Available for Other Purposes Less: Average Annual Requirements for Combination Tax and Junior Lien Revenue Certificates of Obligation, 1982 -1997 (includes these Certificates Balance Avalable - for Other Purposes Average Annual Requirements for System General Obligation Tax Bonds, 1982 -2003 Percentage of Combination Tax and Junior Lien Revenue Certificates of Obligation, Self- Supporting Percentage of System General Obligation Tax Bonds Self- Supporting $564,327 444,397 $119,930 115,744 $ 4,186 $757,604 100.00% 0.55% 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 contribute to the System 5.5% of their gross salary. The City contributed $7,250 as its share of the costs for this 1981 fiscal period. The amount of the acutal computed value of vested benefits over the total of the pension fund at 9 -30 -81 for the System is not available. COVERAGE AND FUND BALANCES Average Annual Principal and Interest Requirements, 1982 -2009 $ 369,310 Coverage of Average Requirements by 9 -30 -81 Net Income 1.53 Times Waterworks and Sewer System Revenue Bonds Outstanding, 3 -1 -82 $4,818,000 Interest and Sinking Fund, 3 -1 -82 $ 63,216 Reserve Fund, 3 -1 -82 $ 221,165 Note: Requirements fo'r 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. -14- CONDENSED STATEMENT OF OPERATIONS WATERWORKS AND SEWER SYSTEM (Extracted from City's Audited Financial Statements) Period Ended 9- 30 -81* 9 -30 -80 9- 30 -79** 9 -30 -78 9 -30 -77 INCOME Water System Water Collections $ 700,389 $ 755,700 $514,604 $315,958 $214,364 Water Taps 49,863 73,263 96,529 71,228 58,234 Reconnection Charges -0- -0- -0- -0- 75 Sale of Material -0- -0- -0- -0- 2,159 Brushy Bend Collections -0- -0- -0- -0- 8,636 Miscellaneous 3,105 11,402 650 -0- 102 Total Water Income $ 753,357 $ 840,365 $611,783 $387,186 283,570 Sewer System Sewer Collections $ 370,335 $ 238,027 $135,517 $ 85,812 $ 70,625 Sewer Taps 57,337 84,243 94,789 46,699 38,635 Miscellaneous 2,391 5,526 216 -0- 15 Total Sewer Income $ 430,063 $ 327,796 $230,522 $132,511 $109,275 Total System Income $1,183,420 $1,168,161 $842,305 $519,697 $392,845 EXPENSES Water System Administrative $ 71,253 $ 67,777 $ 50,748 $ 38,076 $ 23,697 Water Department 282,947 214,021 174,861 130,032 61,032 Miscellaneous 12,291 -0- 5,231 -0- 501 Total Water Expenses $ 366,491 $ 281,798 $230,840 $168,108 $ 85,230 Sewer System Administrative $ 69,105 $ 53,801 $ 25,381 $ 20,243 $ 7,545 Sewer Department 166,451 140,427 87,456 69,129 56,192 Miscellaneous 17,046 -0- 2,616 -0- -0- Total Sewer Expenses $ 252,602 $ 194,228 $115,453 $ 89,372 $ 63;737 Total System Expenses $ 619,093 $ 476,026 $346,293 $257,480 $148,967 NET INCOME AVAILABLE FOR -DEBT SERVICE $ 564,327 $ 692,135 $496,012 $262,217 $243,878 Water Customers Sewer Customers 4,589 3,974 3,695 3,005 2,304 4,557 3,935 3,552 2,859 2,202 * Decreased water sales as a result of a very wet summer. Water and Sewer rates were increased 3 -26 -81 and 4 -9 -81 respectively. ** Increased water and sewer rates, effective 12- 20 -78. Note: Water collections for fiscal year 9 -30 -78 are inclusive of Brushy Bend collec- tions and represent a modified accrual statement. The City has since gone to a modi- fied accrual method of accounting. The water and sewer collections entry is inclusive of all additional revenues received by that system. The 9 -30 -79 through 9 -30 -81 water collections are inclusive of reconnect charges, sale of material, and Brushy Bend collections. 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 Westing- house 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. -15- 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 Dail Usage) Year Projection (MGD) GPM 1982 17,935 8.07 1983 20,981 9.44 1984 24,547 11.05 1985 28,720 12.92 1986 33,602 15.12 1987 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 -16- 5,600 6,560 7,670 8,975 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: Table II Existing Water Wells Pump Capacity Well Location GPM MGD Lake Creek 250 0 Lake Creek 1,250 1.800 Lake Creek 1,200 1.728 Lake Creek 3,000 0.432 Tower Drive 300 0.432 Westinghouse 300 0.432 Westinghouse 100 0.144 Brushy Creek 1,400 1.106 Spring Creek 1,400 2.016 Burnette 750 1.080 Austin Industries 300 0.432 These wells have a combined safe water pumping capability of 10,250 GPM, or 9.96 MGD. Thi 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 con- veyance and treatment facilities. Completion is expected by June 1982. I= ncliuded in this project is additional ground storage capacity of 1,000,000 gallons. Dm conjunction with current improvements, monthly water rates were revised. The previous and: current rates are presented below for comparison. 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 ATT 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 First 3,000 gallons Over 3,000 gallons Customer Westinghouse Round Rock High School McNeil Consumer Products Company Country Place Apartments B. J. Hughes Texas Baptist Childrens Home Chisholm Trail Apartments Chateau Square Apartments Quick Stop Coin Laundries Round Rock Middle School 1968 1969 1970 1971 1972 1973 1974 124,000 gallons 177,000 gallons 186,000 gallons 210,000 gallons 220,000 gallons 250,000 gallons 295,000 gallons Residential and Commercial -17- Total Gallons Sold Per Year (000's) 24,983 15,465 12,944 6,232 5,704 4,217 3,901 3,205 2,879 983 80,513 % of Water Sold .68% .42% .35% .17% .14% .11% .10% .09% .08% .03% 2.18% Note: Total water billed was 369,676,500 gallons, for the 9 month period ended 6- 30 -81. 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 ppm Texas Water Quality Board Discharge Permit. Sewage collection mains range in size from 6 to 15 inches in diameter. The system con- tains eight (8) lift stations. Average system flows are depicted in Table III: Table III Average Daly Sewage Flow 1975 410,000 gallons 1976 580,000 gallons 1977 700,000 gallons 1978 1,200,000 gallons 1979 1,330,000 gallons 1980 1,400,000 gallons 1981 1,196,506 gallons OLD MONTHLY SEWER RATES (Effective 12- 20 -78) Inside City Limits Outside City Limits $4.00 (Minimum) First $0.20 /M gallons* Over Residential and Commercial 3,000 gallons $8.00 (Minimum) 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* Fiscal Year Ended Thousand Gallons of Water Billed Total Water Billings Number of Water Billings Average Monthly Water Bill Total Sewer Billings Number of Sewer Billings Average Monthly Sewer Bill Table IV Waterworks and Sewer System Statistical Data -18- 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. 9 -30 -81 9 -30 -80 9 -30 -79 9 -30 -78 9 -30 -77 598,133 7577* 648,561 771.767 4 7,910 $678,972 $722,636 $456,797 $304,359 $214,364 51,724 45,322 39,631 32,363 25,067 $ 13.12 $ 15.94 $ 11.53 $ 9.40 $ 8.55 $491,979 $227,689 $145,862 $ 85,812 $ 70,625 51,312 45,024 38,909 30,647 23,865 $ 9.58 $ 5.06 $ 3.75 $ 2.80 $ 2.96 * 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.S. 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. While most of Williamson County was suffering the dismal effects of economic depression in 1981, the economy remained brisk and healthy in the Round Rock and Central Texas area. Round Rock became the first Williamson County City to collect over half a million dollars in city sales tax in a single year, and also widened its lead as the county's largest trade center. A wide variety of stores opened their doors in Round Rock in 1981, including the Factory Outlet Mali at IH 35 and FM 1325, which offers a variety of merchandise at markdowns ranging from 25 to 70 per cent. This is the first "discount mall" in Texas. Also opening in 1981 was Round Rock West Center which offered shoppers a large Safeway Store and a variety of other retail stores. Wal -Mart has announced plans to build a large discount department store on IH -35. There were three relatively new industries added to the manufacturing community, including BJ- Hughes, Tellabs and Weed Instruments. BJ- Hughes, manufactures oil field equipment and its plant is located on North IH -35, employing approximately 400 people. The total plant size is 169,000 square feet and there are plans for expansions. Tellabs, a telecommunications equipment plant opened in May 1981, employing 135 per- sons. The plant currently has 21,000 square feet and there are plans for three more expansions in the near future which would bring the plant size to 105,000 square feet. Weed Instruments, a manufacturer of temperature- sensing instruments for a variety of industrial uses, opened its new plant in December of 1981. It currently occupies 18,500 square feet at its plant and employs 77. There are future expansions planned. City Government and Community Services ... The City is a Council - Manager form of government with a Mayor and six councilmen. A full -time fire department consisting of 31 members and 8 vehicles, a police staff of 23 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. Planned for 1983 is the Round Rock Community Hospital to be located on a 100 -acre site near Brushy Creek between Round Rock and the U. S. 183 area. Other hospital services are easily accessible in nearby Austin. Financial Institutions ... The City has access to three banks and three major savings and loan associations which have at this time total deposits of approximately $67 and $ 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 1981 Assessed Valuation of $1,227,357,023. The district maintains eleven elementary, three middle and two senior high schools. School administrators are hoping to start construction on a fourth middle school sometime this year, pending selection of a site. Budget for the current year is more than $38,000,000 with a scholastic enrollment of 12,000. Average Daily Attendance (ADA) in the school district has grown by almost 9,000 since 1971 when ADA stood at 1,751. In the 1981 -82 school year ADA passed the 10,000 mark _19- and is continuing a steady growth pattern. Assessed Value Real Property Year Enrollment (000's) 1970 1,817 $ 27,717 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 7,000 154,407 1977 7,500 202,544 1978 8,300 274,482 1979 9,100 582,049* 1980 10,200 611,654 1981 12,000 1,227,357 *Begin 100% Basis of assessment. 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 $ 6,076,000 1971 3,060 985 2,147 16,788 8,189,000 1972 3,310 1,110 5,365 23,248 12,168,000 1973 3,560 1,251 9,509 27,916 16,736,000 1974 3,860 1,284 13,244 35,438 20,588,000 1975 5,000 1,693 16,118 47,911 22,838,000 1976 6,176 2,088 42,680 68,580 29,857,000 1977 8,181 4,548 88,447 105,635 35,568,000 1978 10,500 4,928 141,295 220,114 41,450,000 1979 11,100 5,343 104,184 359,757 52,863,000 1980 13,500 5,761 84,832 444,733 54,916,000 1981 14,900* 8,400 ** 70,190 1,446,211 65,412,000** 1982 17,900* * City Planning Department Projections ** As of August 1981 Area Employers ... Westinghouse Electric Corporation's Heavy Industry Motor Division is one of the oldest of the new industries in Round Rock and is the City's largest manu- facturer, and now employs over 700 area residents in production, engineering, marketing and management. They are located on a 250 acre site on IH 35 just north of the city limits and are housed in a 350,000 plus square foot facility. Other major employers in the area include the following: Austin White Lime; Eagle Signal Corporation; IBM Corporation; Motorola Corporation; Preferred Stamping Company; Sweet Publishing Company; Texas Crushed Stone; Texas Instruments; B -J Hughes, Incorporated; McNeil Consumer Products Company; Kenrod Steel; Tellabs, Inc.; Weed Instrument Co.; Feather - lite Block; and MKM Corporation. Burroughs and Abbott Laboratories, two major corporations have acquired plant sites in and around the City and will begin con- struction in the very near future. Recreation ... Lake Travis, together with a number of other major lakes and parks, is in the near ficinity to add recreational dimension to the area. The hunting of deer, quail and mourning doves can also be enjoyed throughout this area. Each year, the weekend after the Fourth of July, Round Rock holds Frontier Days, an 18 year tradition which attracts many people. The streets are lined with entertainment, arts and crafts, food booths, and many events are scheduled all over town. Also, starting in 1980 the Chamber of Commerce sponsored a Merchants Fair with over 60 booths, giving information about Round Rock businesses and services. The event has become an annual affair and draws crowds of several thousand. 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. 9n_ RATINGS Applications for contract ratings on these issues 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 repre- sentation 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 and Certificates. TAX EXEMPTION The delivery of the Bonds and Certificates 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 and Certificates is exempt from all present Federal income taxes under existing statutes, rulings, regulations and court decisions. The laws, regula- tions, 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 AND CERTIFICATES FOR SALE The sale of the Bonds and Certificates 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 and Certificates have not been qualified under the Securities Act of Texas in reliance upon various exemptions contained therein; nor have the Bonds and Certificates been qualified under the securities acts of any jurisdiction. The City assumes no responsibility for qualification of the Bonds.and Certificates under the securities laws of any jurisdiction in which the Bonds and Certificates may be sold, assigned, pledged, hypothecated or otherwise transferred. . This disclaimer of responsibility for qualification for sale or other disposition of the Bonds and Certificates 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 and Certificates are legal investments for sinking funds of Texas counties, cities and towns. They are eligible to secure TexaS state, county,'pity 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 and Certificates 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 authoriza- tion and issuance of the Bonds and Certificates, including the unqualified approving legal opinion of the Attorney General of the State of Texas, to the effect that the Bonds and Certificates 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 and Certificates is exempt from Federal income taxation under existing statutes, regulations, 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 and Certificates, or which would affect the provision made for their payment or security, or in any manner ques- tioning the validity of said Bonds and Certificates or the coupons appertaining 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 and Certificates 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 and Certificates are contingent on the sale and delivery of the Bonds and Certificates. The legal opinion will be printed on the Bonds and Certificates. -21- 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 and Certificates. The Financial Advisor's fee for services rendered with respect to the sale of the Bonds and Certificates is contingent upon the issuance and delivery of the Bonds and Certificates. First Southwest Company may sub- mit a bid for the Bonds and Certificates, either independently or as a member of a syndicate organized to submit a bid for the Bonds and Certificates. CERTIFICATION OF THE OFFICIAL STATEMENT At the time of payment for and delivery of the Bonds and Certificates, 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 pertaining 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 Certificates 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 as the descriptions and statements, including financial data, of or pertaining to entities, other than the City, and their activities contained in such Official State- ment 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 and Certificates 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 and Certificates by the Purchaser. ATTEST: JOANNE LAND City Secretary -22- LARRY L. TONN Mayor APPENDIX The information contained in this Appendix has been reproduced from the City of Round Rock, Texis Annual Audit Report for the Fiscal Year Ended September 30, 1981. 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 finan- cial condition. Reference is made to the complete Annual Audit Report for further information. Honorable Mayor and City Council City of Round Rock Round Rock, Texas OFFICIAL BID FORM April 5, 1982 Members of the Council: Reference is made to your Official Statement and Notice of Sale and Bidding Instructions, dated March 11, 1982, of $300,000 CITY OF ROUND ROCK, TEXAS GENERAL OBLIGATION BONDS, SERIES 1982, both of which constitute a part hereof. For your legally issued Bonds, as described in said ",:;lice of Sale and Bidding Instruc- tions 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 1 8 -1 -1987 % 8 -1 -1990 1 8 -1 -1985 % 8 -1 -1988 % 8 -1 -1991 % 8 -1 -1986 % 8 -1 -1989 % 8 -1 -1992 % 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 $6,000.00, 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 May 10, 1982, 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, City Secretary By Authorized Representative ACCEPTANCE CLAUSE The above and foregoing bid is hereby in all things accepted by the City of Round Rock, Texas, this the 5th day of April, 1982. ATTEST: Mayor Return of Good Faith Deposit is hereby acknowledged: By Honorable Mayor and City Council City of Round Rock Round Rock, Texas OFFICIAL BID FORM Members of the Council: Reference is made to your Official Statement and Notice of Sale and Bidding Instructions, dated March 11, 1982, of $625,000 CITY OF ROUND ROCK, TEXAS COMBINATION TAX AND REVENUE CERTIFICATES OF OBLIGATION, SERIES 1982, both of which constitute a part hereof. For your legally issued Certificates, 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 Certificates maturing and bearing interest as follows: Interest Interest Interest Maturity Rate Maturity Rate Maturity Rate 8 -1 -1984 % 8 -1 -1989 % 8 -1 -1993 % 8 -1 -1985 % 8 -1 -1990 % 8 -1 -1994 % 8 -1 -1986 % 8-1-1991 % 8 -1 -1995 % 8 -1 -1987 % 8 -1 -1992 % 8 -1 -1996 % 8 -1 -1988 % 8 -1 -1997 % 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 $12,500.00, 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 Certificates at Bank, Austin, Texas, not later than 10:00 AM, CDT, on May 10, 1982, or thereafter on the date the Certificates are tendered for delivery, pursuant to the terms set forth in the Notice of Sale and Bidding Instructions. Respectfully submitted, City Secretary By Authorized Representative April 5, 1982 ACCEPTANCE CLAUSE The above and foregoing bid is hereby in all things accepted by the City of Round Rock, Texas, this the 5th day of April, 1982. ATTEST: Mayor * * * * * * * Return of Good Faith Deposit is hereby acknowledged: By