R-90-1471 - 6/14/1990WHEREAS, the City Council of the City of Round Rock, Texas
desires to receive bids for the purchase of its $1,595,000
Certificates of Obligation, Series 1990; and
WHEREAS, First Southwest Company, Dallas, Texas, has been
authorized and requested to prepare the Preliminary Official
Statement containing financial, economic and other data necessary
and desirable to accomplish the sale of said certificates;
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE
CITY OF ROUND ROCK, TEXAS:
That the attached Preliminary Official Statement
relative to $1,595,000 City of Round Rock, Texas, Certificates of
Obligation, Series 1990, is hereby approved, both as to form and
content, and said First Southwest Company is authorized to
distribute the Preliminary Official Statement to prospective
purchasers of, the certificates.
ATTEST:
RESOLVED this 14th day of June, 1990._
NE LAND,
Ci y Secretary
RESOLUTION NO. /
' MIKE ROBINSON, Mayor
City of Round Rock, Texas
wb �
DATE: June 12, 1990
SUBJECT: CITY COUNCIL MEETING, June 14, 1990
ITEM: 25L. Consider a resolution approving the Preliminary
Official Statement and Notice of Sale for the issuance of
the City of Round Rock Certificates of Obligation, Series
1990.
Documents and a discussion by the City's Financial Advisor will be
available at the meeting.
The City of Round Rock Certificates of Obligation, Series 1990 are
intended to be issued for the further purpose of acquiring the City
Hall building and parking garage.
The Preliminary Official Statement gives the potential investor
complete financial information about the debt issue and the City's
financial status.
NEW ISSUE OFFICIAL STATEMENT
Dated Tune 14, 1990
PRELIMINARY DRAFT
DATE; (a - 9 0
In the opinion of Bond Counsel, interest on the Certificates will be excludable from gross income for
federal income tax purposes under existing law, subject to the matters described under "Tax Exemption"
herein, including the alternative minimum tax on corporations.
THE CITY WILL DESIGNATE THE CERTIFICATES AS
"QUALIFIED TAX - EXEMPT OBLIGATIONS"
FOR FINANCIAL INSTITUTIONS
$1,595,000
CITY OF ROUND ROCK, TEXAS
(Williamson County)
CERTIFICATES OF OBLIGATION, SERIES 1990
Dated: July 1, 1990 Due: August 1, as shown below
lntere • on the $1,595,000 City of Round Rock, Texas (th. "City ") Certificates of Obligation, Series 1990
(the "Certificates ") will accrue from the dated date as shown above and will be payable February 1 and
August 1 of each year, commencing February 1, 1991, and will be calculated on the basis of a 360 -day
year of twelve 30 - day months. The definitive Certificates will be issued only as fully registered
certificates in the denomination of $5,000 or any integral multiple thereof.
These Certificates constitute direct obligations of the City, payable from an ad valorem tax levied, within
the limits prescribed by law, on all taxable property located within the City, as provided in the ordinance
authorizing the Certificates (the "Ordinance ") (see "Authority for Issuance ").
The initial Paying Agent /Registrar shall be the Ameritrust Texas, N.A., Austin, Texas (see "Paying
Agent /Registrar ").
Proceeds from the sale of the Certificates will be used for the purpose of acquiring a building to be used
as a City Hall and as the offices for the City's administrative staff, and for paying fees for professional
services incurred in connection with this project including fees for legal, fiscal, financial advisor, tax
appraisal engineering, engineering and architectural services.
MATURITY SCHEDULE
Price Price
or or
Amount Maturity Rate Yield Amount Maturity Rate Yield
37) 8 -1 -1991 75,000 8 -1 -2001
40,000 8 -1 -1992 80,000 8 -1 -2002
45,000 8 -1 -1993 85,000 8 -1 -2003
45,000 8 -1 -1994 95,000 8 -1 -2004
50,000 8 -1 -1995 100,000 8 -1 -2005
55,000 8 -1 -1996 110,000 8 -1 -2006
60,000 8 -1 -1997 115,000 8 -1 -2007
60,000 8 -1 -1998 125,000 8 -1 -2008
65,000 8 -1 -1999 135,000 8 -1 -2009
70,000 8 -1 -2000 145,000 8 -1 -2010
The City reserves the right, at its option, to redeem Certificates having stated maturities on and after
August 1, 2001, in whole or in part in principal amounts of $5,000 or any integral multiple thereof, on
August 1, 2000, or any date thereafter, at the par value thereof plus accrued interest to the date fixed
for redemption (see "Redemption of Certificates ").
The presently outstanding tax supported debt of the City is rated "A" by Moody's Investors Service, Inc.
( "Moody's") and "A-" by Standard & Poor's Corporation ( "S&P"). Requests for ratings for the Certificates
have made to both rating services (see "Ratings ").
The Certificates are offered for delivery when, as and if issued and received by the purchaser(s) and
subject to the approving opinion of the Attorney General of the State of Texas and of McCall, Parkhurst
& Horton, Bond Counsel, .Dallas, Texas. The legal opinion will be printed on the Certificates (see
Appendix C, "Form of Bond Counsel's Opinion").
It is expected that the Certificates will be eligible for delivery through the Depository Trust Company
( "DTC"). It will be the obligation of the purchaser of the Certificates to complete and file the DTC
Eligibility Questionnaire.
Delivery: Anticipated on or about July 19, 1990
This Official Statement does not constitute an offer to sell Certificates 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 Certificates, 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.
TABLE OF CONTENTS
Page No.
Official Statement
Description of the Certificates 1
City Administration
Elected Officials 3
Appointed Officials 3
Consultants and Advisors 3
Selected Data from the Official Statement 4
Certificate Information
Authority for Issuance 6
Security for Certificates 6
Redemption of Certificates 6
Paying Agent /Registrar 6
Transfer, Exchange and Registration 6
Limitation on Transfer of Certificates Called for Redemption 7
Record Date for Interest Payment 7
Use of Certificate Proceeds 7
Sources and Uses of Funds 7
Tax Information
Ad Valorem Tax Law 8
Valuation, Exemptions and Debt Obligations 9
Taxable Assessed Valuations by Category 10
Valuation and Funded Debt History 11
Tax Rate, Levy and Collection History 11
Ten Largest Taxpayers 12
Tax Rate Limitation 12
Assessed Valuations, Tax Rates, Outstanding Debt and Authorized
But Unissued Bonds of Overlapping Taxing Jurisdictions 12
Debt Information
Debt Service Requirements 13
Estimated Direct and Overlapping Funded Debt Payable From Ad Valorem Taxes 14
Interest and Sinking Fund Budget Projection 14
Computation of Self - Supporting Debt 14
Authorized General Obligation Bonds 15
Anticipated Issuance of General Obligation Debt 15
Funded Debt Limitation 15
Other Obligations 15
Pension Fund 15
Financial Information
General Fund Revenues and Expenditure History 16
Municipal Sales Tax History 17
Financial Administration 17
Financial Policies 17
Other Relevant Information
Ratings 18
Tax Exemption 18
Qualified Tax - Exempt Obligations 18
Tax Accounting Treatment of Discount Certificates 19
Litigation 19
Registration and Qualification of Certificates for Sale 19
Legal Investments and Eligibility to Secure Public Funds in Texas 19
Legal Opinions and No-Litigation Certificate 20
Authenticity of Financial Data and Other Information 20
Financial Advisor 20
Certification of the Official Statement 20
Appendices
General Information Regarding The City A
Excerpts From the Annual Financial Report B
Form of Bond Counsel's Opinion C
Bond Years D
The cover page hereof, this page, the appendices included herein and any addenda, supplement or
amendment hereto, are part of the Official Statement.
Elected Officials
Length of
City Council Service Term Expires Occupation
Mike Robinson 12 Years May 1993 Self-employed
Mayor
Charles Culpepper 5 Years May 1991 President, Austin Material Handling
Mayor Pro -Tem
Pete Correa 7 Years May 1991 Self- employed
Councilmember
Jimmy Joseph 1 Year May 1992 Self- employed
Councilmember
Tish Oatman 1 Year May 1992 Self -employed
Councilmember
Earl Palmer Newly May 1993 Retired Businessman
Councilmember Elected
Robert Stluka Newly May 1993 President, Automotive Wholesalers of
Councilmember Elected Texas
Appointed Officials
Length of
Name Position Service
Robert L. Bennett, Jr. City Manager 12 Years
Joanne Land Assistant City Manager /City Secretary 20 Years
David Kautz Director of Finance 13 Years
Stephen L. Sheets City Attorney 12 Years
Forrest Child Tax Collector -Round Rock Independent 9 Years
School District
City full -time employees numbered 265 as of June 11, 1990, of which 51 were assigned to the Police
Department.
Consultants and Advisors
Auditors
Bond Counsel
Financial Advisor
CITY ADMINISTRATION
For additional information regarding the City, please contact:
David Kautz George D. fanning
Director of Finance or First Southwest Company
City of Round Rock 98 San Jacinto Boulevard
221 East Main Street Suite 370
Round Rock, Texas 78664 Austin, Texas 78701
(512) 255- 3612 (512) 476-4372
Pena, Swayze & Company
Round Rock, Texas
McCall, Parkhurst & Horton
Dallas, Texas
First Southwest Company
Dallas, Texas
SELECTED DATA FROM THE OFFICIAL STATEMENT
The selected data on this page is subject in all respects to the more complete information and definitions
contained or incorporated in this Official Statement. The offering of the Certificates to potential
investors is made only by means of this entire Official Statement. No person is authorized to detach this
data page from this Official Statement or to otherwise use it without the entire Official Statement.
This data page was prepared to present the purchasers of the Certificates information concerning the
Certificates, the revenues pledged to payment of the Certificates, the description of the revenue base and
other pertinent data, all as more fully described herein.
The Issuer
The Certificates
Qualified Tax - Exempt
Obligations
The City of Round Rock, Texas is a political subdivision located in Williamson
County operating as a home -rule city under the laws of The State of Texas and
a charter approved by the voters in August, 1977. The City operates under the
Council /Manager form of government where the mayor and six
councilmembers are elected for staggered three -year terms. The Council
formulates operating policy for the City while the City Manager is the chief
administrative officer.
The City of Round Rock is located in Williamson County, 8 miles north of
Austin and 85 miles south of Waco on Interstate Highway 35. The City is also
situated on 1.I.5. Highway 79, which runs east and west. Both U.S. Highway 79
and Interstate Highway 35 are main arteries of traffic in the State (see
Appendix A - "General Information Regarding the City ").
The Certificates are being issued in the principal amount of $1,595,000
pursuant to the general laws of the State of Texas, particularly Subchapter C
of Chapter 271, Texas Local Government Code (the Certificate of Obligation
Act of 1971), as amended, and an Ordinance passed by the City Council of the
City (see "Authority for Issuance ").
The City will designate the Certificates as "Qualified Tax - Exempt
Obligations" for financial institutions (see "Qualified Tax - Exempt
Obligations ").
Security for the
Certificates The Certificates constitute direct obligations of the City, payable from a
continuing ad valorem tax levied on all taxable property within the City in an
amount sufficient to provide for payment of principal of and interest on all ad
valorem tax debt, within the limits prescribed by law (see "Security for
Certificates ").
Optional Redemption The City reserves the right, at its option, to redeem Certificates having stated
maturities on and after August 1, 2001, in whole or in part in principal
amounts of $5,000 or any integral multiple thereof, on August 1, 2000, or any
date thereafter, at the par value thereof plus accrued interest to the date
fixed for redemption (see "Redemption of Certificates ").
Tax Exemption In the opinion of Bond Counsel, the interest on the Certificates will be
excludable front gross income for federal income tax purposes under existing
law, subject to the matters described under "Tax Exemption" herein, including
the alternative minimum tax on corporations.
Use of Certificate
Proceeds The Certificate proceeds will be used for the purpose of acquiring a building to
be used as a City Hall and as the offices for the City's administrative staff,
and for paying fees for professional services incurred in connection with this
project including fees for legal, fiscal, financial advisor, tax appraisal
engineering, engineering and architectural services.
Payment Record The City has never defaulted.
Selected Issuerindices
Ratio Funded
Fiscal Taxable Debt to
Year Assessed Funded Debt Taxable Taxable
Ended Estimated Assessed Valuation Outstanding at Assessed Funded Debt
9 -30 Po pulatio n Valuation Per C d o
apita End Year Valuation Per Capita
1980 13 $ 127,212,878 $ 9,423 $ 5,025,000 3.9596 $ 372.22
1981 14,500 173,893,546 11,993 13,689,000 7.8796 944.07
1982 17,900 336,294,863(1) 18,782 14,518,000 4.3296 811.07
1983 18,500 353,857,060 19,127 17,150,000 4.8596 927.03
1984 22,700 388,724,088 17,124 16,904,000 4.3596 744.67
1985 27,304 461,785,785 16,913 24,394,000 5.28% 893.42
1986 29,780 1,045,495,047(1) 35,107 35,852,000 3.43% 1,203.90
1987 30,726 1,170,066,819 38,081 44,020,000 3.7696 1,432.66
1988 31,016 1,208,589,028 38,966 44,693,000 3.6896 1,440.96
1989 32,043 1,164,006,659(1) 36,326 43,251,000 3.7396 1,349.78
1990 33,000 1,052,509,796 31,894 45,210,601 4.3096 1,370.02
(1) Revaluation.
Source: City.
CERTIFICATE INFORMATION
Authority for Issuance
The Certificates are being issued pursuant to the Constitution and general laws of the State of Texas,
particularly Subchapter C of Chapter 271, Texas Local Government Code (the Certificate of Obligation
Act of 1971), as amended and an Ordinance passed by the City Council.
Security for Certificates
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 debt service.
Redemption of Certificates
The City reserves the right, at its option, to redeem Certificates having stated maturities on and after
August 1, 2001, in whole or in part in principal amounts of $5,000 or any integral multiple thereof, on
August 1, 2000, or any date thereafter, at the par value thereof plus accrued interest to the date fixed for
redemption. If less than all of the Certificates are to be redeemed and if less than all of a maturity is to
be redeemed, the Paying Agent /Registrar shall determine by lot the Certificates, or portions thereof,
within such maturity to oe redeemed.
Not Less than 30 days prior to a redemption date for the Certificates, the City shall cause a notice of
redemption to be sent by United States mail, first class, postage prepaid, to each registered owner of a
Certificate to be redeemed, in whole or in part, at the address of the registered owner appearing on the
registration books of the Paying Agent /Registrar at the close of business on the business day next
preceding the date of mailing such notice. Any notice of redemption so mailed shall be conclusively
presumed to have been duly given irrespective of whether received by the certificateholder.
Paying Agent /Registrar
The initial Paying Agent /Registrar is Ameritrust Texas, N.A., Austin, Texas. In the Ordinance the City
retains the right to replace the Paying Agent /Registrar. The City covenants to maintain and provide a
Paying Agent /Registrar at all times while the Certificates are outstanding and any successor Paying
Agent /Registrar shall be a commercial bank or trust company organized under the laws of the State of
Texas or other entity duly qualified and legally authorized to serve as and perform the duties and services
of Paying Agent /Registrar for the Certificates. Upon any change in the Paying Agent /Registrar for the
Certificates, the City agrees to promptly 'cause a written notice thereof to be sent to each registered
owner of the Certificates by United States mail, first class, postage prepaid, which notice shall also give
the address of the new Paying Agent /Registrar.
Principal of the Certificates will be payable to the registered owner at maturity or prior redemption upon
presentation at the principal office of the Paying Agent /Registrar. Interest on the Certificates will be
payable by check, dated as of the interest payment date, and mailed by the Paying Agent /Registrar to
registered owners as shown on the records of the Paying Agent /Registrar on the Record Date (see "Record
Date for Interest Payment" herein), or by such other method, acceptable to the Paying Agent /Registrar,
requested by, and at the risk and expense of, the registered owner. If the date for the payment of the
principal of or interest on the Certificates shall be a Saturday, Sunday, legal holiday, or day on which
banking institutions in the city where the Paying Agent /Registrar is located are authorized by law or
executive order to close, then the date for such payment shall be the next succeeding day which is not
such a Saturday, Sunday, legal holiday, or day on which banking institutions are authorized to close; and
payment on such date shall have the same force and effect as if made on the original date payment was
due.
Transfer, Exchange and Registration
The Certificates may be transferred and exchanged on the registration books of the Paying
Agent /Registrar only upon presentation and surrender thereof to the Paying Agent /Registrar and such
transfer or exchange shall be without expense or service charge to the registered owner, except for any
tax or other governmental charges required to be paid with respect to such registration, exchange and
transfer. A Certificate may be assigned by the execution of an assignment form on the Certificate or by
other instrument of transfer and assignment acceptable to the Paying Agent /Registrar. A new
Certificate or Certificates will be delivered by the Paying Agent /Registrar, in lieu of the Certificate
being transferred or exchanged, at the principal office of the Paying Agent /Registrar, or sent by United
States mail, first class, postage prepaid, to the new registered owner or his designee. To the extent
possible, new Certificates issued in an exchange or transfer of Certificates will be delivered to the
registered owner or assignee of the registered owner in not more than three business days after the
receipt of the Certificates to be cancelled, and the written instrument of transfer or request for exchange
duly executed by the registered owner or his duly authorized agent, in form satisfactory to the Paying
Agent /Registrar. New Certificates registered and delivered in an exchange or transfer shall be in any
integral multiple of $5,000 for any one maturity and for a like aggregate principal amount as the
Certificate or Certificates surrendered for exchange or transfer.
Limitation on Transfer of Certificates Called for Redemption
Neither the City nor the Paying Agent /Registrar shall be required to transfer or exchange to an assignee
of the owner of the Certificates any Certificate called for redemption, in whole or in part, within 45 days
of the date fixed for redemption; provided, however, such limitation of transfer shall not be applicable to
an exchange by the registered owner of the uncalled balance of a Certificate.
Record Date for Interest Payment
The record date ( "Record Date ") for the interest payable on any interest payment date means the close of
business on the 15th day of the preceding month.
In the event of a non - payment of interest on a scheduled payment date, and for 30 days thereafter, a new
record date for such interest payment (a "Special Record Date ") will be established by the Paying
Agent /Registrar, if and when funds for the payment of such interest have been received from the City.
Notice of the Special Record Date and of the scheduled payment date of the past due interest ( "Special
Payment Date ", which shall be 15 days after the Special Record Date) shall be sent at least five business
days prior to the Special Record Date by United States mail, first class postage prepaid, to the address of
each Holder of a Certificate appearing on the registration books of the Paying Agent /Registrar at the
close of business on the last business day next preceding the date of mailing of such notice.
Use of Certificate Proceeds
The City plans to use proceeds to pay all of the City's contractual obligations for acquiring a building to
be used as a City Hall and as the offices for the City's administrative staff, and for paying fees for
professional services incurred in connection with this project including fees for legal, fiscal, financial
advisor, tax appraisal engineering, engineering and architectural services.
Sources and Uses of Funds
Sources:
Proceeds from Sale of Certificates
Total Sources of Funds
Uses:
Cost of Acquiring City Hall
Estimated Costs of Issuance
Total Uses of Funds
$1,595,000
1.595.000
$1,510,000
85,000
$1,595,000
Ad Valorem Tax Law
TAX INFORMATION
The appraisal of property within the City is the responsibility of the Williamson County Appraisal District.
Excluding agricultural and open -space land, which may be taxed on the basis of productive capacity, the
Appraisal District is required under the Property Tax Code to appraise all property within the Appraisal
District on the basis of 100% of its market value and is prohibited from applying any assessment ratios.
The value placed upon property within the Appraisal District is 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 at least every
three years. The City may require annual review at its own expense, and is entitled to challenge the
determination of appraised value of property within the City by petition filed with the Appraisal Review
Board.
Reference is made to the VTCA, Property Tax Code (the "Tax Code "), for identification of property
subject to taxation; property exempt or which may be exempted from taxation, if claimed; the appraisal
of property for ad valorem taxation purposes; and the procedures and limitations applicable to the levy
and collection of ad valorem taxes.
Article VIII of the State Constitution ( "Article VIIP') and State law provide for certain exemptions from
property taxes, the valuation of agricultural and open -space lands at productivity value, and the
exemption of certain personal property from ad valorem taxation.
Under Section 1 - Article VIII, and State law, the governing body of a political subdivision, at its option,
may grant:
(1) An exemption of not less than $3,000 of the market value of the residence homestead of persons
65 years of age or older and the disabled from all ad valorem taxes thereafter levied by the political
subdivision;
(2) An exemption of up to 20% of the market value of residence homesteads; minimum exemption
$5,000.
State law and Section 2, Article VIII, mandate an additional property tax exemption 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 applies to either real or personal property with the amount of assessed valuation
exempted ranging from $1,500 to a maximum of $3,000.
Article VIII provides that eligible owners of both agricultural land (Section 1 -d) and open -space land
(Section 1 -d -1), including open -space land devoted to farm or ranch purposes or open -space land devoted
to timber production, may elect to have such property appraised for property taxation on the basis of its
productive capacity. The same land may not be qualified under both Section 1 -d and 1 -d -1.
Nonbusiness vehicles, such as automobiles or light trucks, are exempt from ad valorem taxation unless the
governing body of a political subdivision elects to tax this property. Boats owned as nonbusiness property
are exempt from ad valorem taxation.
Article VIII, Section 1 -j of the Texas Constitution authorizing an ad valorem tax exemption for "freeport
property" was approved November 7, 1989. Freeport property is goods detained in Texas for 175 days or
less for the purpose of assembly, storage, manufacturing, processing or fabrication. The amendment
provides that the exemption will be effective for the 1990 -91 fiscal year unless the City takes action to
tax such property prior to January 1, 1990 and that the exemption will be effective for all future tax
years unless the City takes action prior to April 1, 1990 but after January 1, 1990. Decisions to continue
to tax may be reversed in the future; decisions to exempt freeport property are not subject to reversal.
The City has not taken action to tax freeport property in the 1990 -1991 fiscal year and is studying the
issue with respect to subsequent years. The Williamson County Appraisal District estimated the value of
freeport property at $20,400,000 which generates approximately $40,000 in taxes at current rates.
The City grants an exemption to the market value of the residence homestead of persons 65 years of age
or older of $15,000; the disabled are granted an exemption ranging from $1,500 to $3,000.
The City has not granted an additional exemption of 20% of the market value of residence homesteads;
minimum exemption of $5,000.
Ad valorem taxes are not levied by the City against the exempt value of residence homesteads for the
payment of debt.
The City does not tax nonbusiness vehicles; and the Round Rock Independent School District collects taxes
for the City.
Valuation, Exemptions and Debt Obligations
1989 Market Valuation Established by Williamson County
Appraisal District $1,110,603,799
Less Exemptions /Reductions at 10096 Market Value:
Over 65 and Disabled Homestead Exemptions (1) $ 7,271,651
Disabled Veterans Exemptions (2) 283,000
Agricultural Land Use Reductions -0-
Open -Space Land Use Reductions (3) 50,539,352 $ 58,094,003
1989 Taxable Assessed Valuation $1,052,509,796
City Funded Debt Payable From Ad Valorem Taxes:
General Obligation Bonds (as of 5- 31 -90) $23,912,000
Waterworks and Sewer System General Obligation Bonds (4) 13,513,000
Combination Tax and Revenue Certificates of Obligation (4) 5,946,000
Capital Leases 244,601
The Certificates 1,595,000
Funded Debt Payable From Ad Valorem Taxes $ 45,210,601
Less Self - Supporting Debt:
Waterworks and Sewer System General Obligation Debt $13,513,000
Combination Tax and Revenue Certificates of Obligation 5.946.000 19,459,000
General Purpose Funded Debt Payable From Ad Valorem Taxes $ 25,751,601
Interest and Sinking Fund (as of 5- 31 -90) $ 3,162,338
Ratio Funded Debt to Taxable Assessed Valuation 4.3096
Ratio Funded Debt Payable from Ad Valorem Taxes to Taxable Assessed Valuation 2.3296
1990 Estimated Population - 33,000
Per Capita Taxable Assessed Valuation - $31,894
Per Capita Funded Debt - $1,370.02
(1) 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 a property tax exemption to the
residence homestead of property owners over 65 year cif age.
(2) The Legislature, pursuant to a constitutional amendment and Article 7150h, V.A.T.C.S., 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.
(3) Reductions made to the Appraised Value of productive agricultural and open -space lands under the
provisions of Article VIII, Sections 1-d and 1 - - of the State Constitution.
(4) The above statement of indebtedness does not include the following revenue bonds, as these bonds
are solely from the net revenues of the System, as defined in the bond ordinance authorizing the bonds:
$16,270,000 Waterworks and Sewer System Revenue Bonds.
•
Taxable Assessed Valuations by Category
Category
Real, Residential, Single- Family
Real, Residential, Multl- Family
Real, Vacant Lots /Tracts
Real, Acreage (Land Only)
Real, Farm and Ranch Improvements
Real, Commercial
Real, Industrial (1)
Real, Oil, Gas and Other Mineral Reserves
Tangible Personal, Nonbusiness Vehicles
Real and Tangible Personal, Utilities
Tangible Personal, Commercial
Tangible Personal, Industrial (1)
Tangible Personal, Other
Intangible Personal
Real Property, Inventory (2)
Total Appraised Value Before Exemptions
Less: Total Exemptions /Reductions
Taxable Assessed Value
Amount
$ 473,725,197
78,521,351
44,017,162
111,801,235
2,432,597
186,713,325
29,327,077
-0-
Category
Real, Residential, Single - Family
Real, Residential, Multi- Family
Real, Vacant Lots /Tracts
Real, Acreage (Land Only)
Real, Farm and Ranch Improvements
Real, Commercial /Industrial (1)
Real and Tangible Personal, Utilities
Tangible Personal, Commercial /Industrial (1)
Tangible Personal, Other
Total Appraised Value Before Exemptions
Less: Total Exemptions /Reductions
Taxable Assessed Value
Taxable Appraised Value For Fiscal Year Ended September 30,
1989 1988
1987
96 of
% of % of
Total Amount Total Amount Total
42.65% $ 527,657,815 43.0296 $ 543,220,499 42.3996
7.0796 95,810,182 7.8196 110,540,840 8.6396
3.9696 84,567,949 6.90% 119,934,902 9.36%
10.0796 138,478,251 11.2996 170,083,697 13.2796
0.22% 2,844,030 0.2396 681,794 0.0596
16.81% 205,137,443 16.7396 212,391,139 16.5896
2.6496 30,557,378 2.4996
p_ -0-
-0_ -0-
2s,626,517 2.1796 26,431,492 2.0696
66,131,849 5.3996 97,495,009 7.6196
44,184,245 3.6096
557,973 0.0596 566,327 0.0596
-0-
29,000,235 2.6296
67,430,083 6.0796
57,468,420 5.1796
663,077 0.0696
-0-
29,504,040 2.6696
$1,110,603,799 100.0096
58,094,003
$1,052,509,796
Amount
$ 539,178,480
132,431,727
103,504,910
180,460,521
654,499
191,330,402
1,116,371
81,601,319
2,556 632
$1,232,834,6
62,768,042
$1,170,066,819
3,861,221
$1,226,414,853
62,408,196
$1,164,006,657
0.32%
100.00%
Taxable Appraised Value For Fiscal Year Ended September 30,
1986 1985
96 of
Total
43.7396
10.7496
8.40%
14.64%
0.05%
15.52%
0.09%
6.6296
0.2196
100.0096
Amount
$ 472,261,257
103,456,049
99,472,801
185,084,291
1,180,411
161,884,037
3,830,670
87,154,629
2,141,469
$1,11465,614
70,970,567
$1,045,495,047
$1,281,345,699
72,756,671
$1,208,589,028
96 of
Total
42.30%
9.27%
8.9196
16.5796
0.11%
14.50%
0.3496 -
7.81%
0.1996
100.0096
100.00%
(1) Industrial category combined with Commerical category prior to 1988 by the Williamson County Appraisal Board.
(2) Residential inventory properties in the hands of developers or builders; each group of properties in this category is appraised on the
basis of Its value as a whole as a sale to another developer or builder. This category initiated in 1988.
Valuation and Funded Debt History
(1) Revaluation.
Source: City.
Tax Rate, Levy and Collection History
Selected Issuer Indices
Ratio Funded
Fiscal Taxable Debt to
Year Assessed Funded Debt Taxable Taxable
Ended Estimated Assessed Valuation Outstanding at Assessed Funded Debt
9 - Population Valuation Per Capita End of Year Valuation Per Capita
1980 13,500 $ 127,212,878 $ 9,423 $ 5,025,000 3.9596 $ 372.22
1981 14,500 173,893,546 11,993 13,689,000 7.8796 944.07
1982 17,900 336,294,863(1) 18,782 14,518,000 4.3296 811.07
1983 18,500 353,857,060 19,127 17,150,000 4.8596 927.03
1984 22,700 388,724,088 17,124 16,904,000 4.3596 744.67
1985 27,304 461,785,785 16,913 24,394,000 5.2896 893.42
1986 29,780 1,045,495,047(1) 35,107 35,852,000 3.4396 1,203.90
1987 30,726 1,170,066,819 38,081 44,020,000 3.7696 1,432.66
1988 31,016 1,208,589,028 38,966 44,693,000 3.6896 1,440.96
1989 32,043 1,164,006,659(1) 36,326 43,251,000 3.7396 1,349.78
1990 33,000 1,052,509,796 31,894 45,210,601 4.3096 1,370.02
Fiscal
Year Distribution
Ended Tax General Interest and % Current 96 Total
9 - Rate Fund Sinking Fund Tax Levy Collections Collections
1980 0. 0. $0.1445 $ 871,347 94.9096 99.0596
1981 0.7700 0.6100 0.1600 1,338,980 93.1296 96.39%
1982 0.4880 0.2960 0.1920 1,616,213 94.9196 99.8396
1983 0.5706 0.3103 0.2603 2,008,949 96.8496 98.5696
1984 0.5706 0.3048 0.2658 2,229,122 97.1996 99.0096
1985 0.5706 0.3703 0.2003 2,660,975 97.5596 99.6996
1986 0.3985 0.2108 0.1877 4,166,298 92.0696 93.3396
1987 0.4269 0.2245 0.2024 4,995,015 94.9996 98.77%
1988 0.4250 0.1941 0.2309 5,136,516 94.5496 100.1096
1989 0.4200 0.1546 0.2654 4,888,828 96.8896 102.2996
1990 0.4836 0.1874 0.2962 4,961,926 94.00 %(1) 99.0096(1)
(1) Collections for part year only, through 5- 31 -90.
Source: City.
Property within the City is assessed as of January 1 of each year (except for business inventory which
may, at the option of the taxpayer, be assessed as of September 1); 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. Taxpayers 65 years old or older are permitted by State law to pay taxes on
homesteads in four installments with the first due on February 1 of each year and the final installment
due on August 1.
Charges for penalty and interest on the unpaid balance of delinquent taxes are made as follows:
Month Penalty Interest Total
February 6% 196 796
March 796 296 996
April • 896 396 1196
May 996 496 1396
June 1096 596 1596
July 1296 696 1896
After July, penalty remains at 1296, and interest increases at the rate of 196 each month. In addition, if
an account is delinquent in July, a 1596 attorney's collection fee is added to the total tax penalty and
interest charge.
Ten Largest Taxpayers
Name of Taxpayer
McNeil Consumer Products Co.
Tellabs Texas, Inc.
Farmers Insurance Group Holdings
Cypress Semi - conductor
Westinghouse Electric
Texas Utilities Electric
Pittsburg National Bank
Texas American Bank /Fort Worth
Southwestern Bell
Gill Savings
Source: State Property Tax Board Report.
Tax Rate Limitation
Under the Tax Code:
Nature of Property
'Pharmaceutical Manufacturer
Electronic Manufacturer
Commercial
Electronic Manufacturer
Electric Manufacturer
Electric Utility
Commercial
Real Estate
Telephone Utility
Commercial
1989 96 of Total
Taxable Taxable
Assessed Assessed
Valuation Valuation
$17,595,288 1.6796
17,241,682 1.6496
16,999,009 1.6296
14,390,100 1.3796
12,260,040 1.1796
11,678,990 1.1196
9,514,987 0.90%
9,079,175 0.8696
8,357,844 0.7996
7,758,186 0.7396
$124,875,301 11.8696
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 a,,d interest
on all ad valorem tax debt within the limits prescribed by law. Article Xl, Section 5, of the Texas
Constitution is applicable to the City, and limits its maximum ad valorem tax rate to $2.50 per $100
Assessed Valuation for all City purposes. The City operates under a Home Rule Charter which adopts the
constitutional provisions.
By each September 1 or as soon thereafter as practicable, the City Council adopts a tax rate per $100
taxable value for the current year. The tax rate consists of two components: (1) a rate for funding of
maintenance and operation expenditures, and (2) a rate for debt service.
The City must annually calculate and publicize its "effective tax rate" and "rollback tax rate ". The City
Council may not adopt a tax rate that exceeds the lower of the rollback tax rate or 10396 of the effective
tax rate until it has held a public hearing on the proposed increase following notice to the taxpayers and
otherwise complied with the Tax Code. If the adopted tax rate exceeds the rollback tax rate the qualified
voters of the City by petition may require that an election be held to determine whether or not to reduce
the tax rate adopted for the current year to the rollback tax rate.
"Effective tax rate" means the rate that will produce last year's total tax levy (adjusted) from this year's
total taxable values (adjusted). "Adjusted" means lost values are not included in the calculation of last
year's taxes and new values are not included in this year's taxable values.
"Rollback tax rate" means the rate that will produce last year's maintenance and operation tax levy
(adjusted) from this year's values (adjusted) multiplied by 1.08 plus a rate that will produce this year's debt
service from this year's values (unadjusted) divided by the anticipated tax collection rate.
The Tax Code provides that certain cities and counties in the State may submit a proposition to the voters
to authorize an additional one -half cent sales tax on retail sales of taxable items. If the additional tax is
levied, the effective tax rate and the rollback tax rate calculations are required to be offset by the
revenue that will be generated by the sales tax in the current year. The City does collect the additional
one -half cent sales tax.
Reference is made to the Tax Code for definitive requirements for the levy and collection of ad valorem
taxes and the calculation of the various defined tax rates.
Assessed Valuations, Tax Rates, Outstanding Debt and Authorized But Unissued Bonds of Overlapping
Taxing Jtrisdlctions
1989
Taxable
Assessed
Taxing Jurisdiction Valuation
Round Rock Independent School District $ 3,434,695,003
Williamson County 4,598,837,690
Travis County 22,544,160,520
Northeast Round Rock Road District /1 29,837,926
Southeast Williamson County Road
District 11 15,796,006
Georgetown Independent School District 744,779,081
1989
Tax
Rate
1.4133
0.1926
0.3862
2.5000
1.0000
1.3000
Source: Texas Municipal Reports published by the Municipal Advisory Council of Texas.
- 12 -
Outstanding Authorized
Tax Supported But Unissued
Debt As of Debt As of
3 -30 -90 3 -30 -90
$123,766,111 $ -0-
15,675,000 -0-
195,414,011 87,012,000
10,300,000 1,700,000
5,850,000 7,150,000
18,670,000 -0-
DEBT SERVICE REOUIRENENTS
YEAR % OF
ENDING OUTSTANDING BONDS THE CERTIFICATES GRAND TOTAL PRINCIPAL
9/30 PRINCIPAL INTEREST TOTAL PRINCIPAL INTEREST TOTAL RHOOIREIODITS RETIRED
1991 $ 1,917,000 $ 2,927,593 $ 4,844,593 $ 40,000 $ 129,594 $ 169,594 $ 5,014,187
1992 2,252,000 2,757,132 5,009,132 40,000 116,625 156,625 5,165,757
1993 2,382,000 2,559,547 4,941,547 45,000 113,625 158,625 5,100,172
1994 2,597,000 2,359,107 4,956,107 45,000 110,250 155,250 5,111,357
1995 2,792,000 2,145,396 4,937,396 50,000 106,875 156,875 5,094,271 28.30%
1996 2,982,000 1,927,130 4,909,130 55,000 103,125 158,125 5,067,255
1997 3,202,000 1,736,580 4,938,580 60,000 99,000 159,000 5,091,580
1998 3,392,000 1,537,705 4,929,705 60,000 94,500 154,500 5,084,205
1999 3,527,000 1,325,685 4,852,685 65,000 90,000 155,000 5,007,685 -1
2000 2,847,000 1,099,516 3,946,516 70,000 85,125 155,125 4,101,641 66.151 a
2001 2,627,000 910,088 3,537,088 75,000 79,875 154,875 3,691,963 g
2002 2,482,000 732,893 3,214,893 80,000 74,250 154,250 3,369,143 g
2003 2,608,000 565,733 3,173,733 85,000 68,250 153,250 3,326,983
2004 2,663,000 385,888 3,048,888 95,000 61,875 156,875 3,205,763
2005 2,578,000 204,975 2,782,975 100,000 54,750 154,750 2,937,725 97.32%
2006 518,000 27,900 545,900 110,000 47,250 157,250 703,150
2007 3,000 150 3,150 115,000 39,000 154,000 157,150
2008 125,000 30,375 155,375 155,375
2009 135,000 21,000 156,000 156,000
2010 145.000 10.875 155.875 155.875 100.00%
$ 41,369,000 $ 23,203,018 $ 64,572,018 $ 1,595,000 $ 1,536,219 $ 3,131,219 $ 67,703,237
INPERESST ON THE CERTIFICATES HAS BEEN CALCULATED AT THE RATE OF 7.500% FOR PURPOSES OF ILLUSTRATION.
Estimated Direct and Overlapping Funded Debt Payable From Ad Valorem Taxes (As of 3- 30 -90)
Expenditures of the various taxing bodies within the territory of the City are paid out of ad valorem taxes
levied by these taxing bodies on properties within the City. These political taxing bodies are independent
of the City and may incur borrowings to finance their expenditures. The following statement of direct
and estimated overlapping ad valorem tax bonds was developed from information contained in "Texas
Municipal Reports" published by the Municipal Advisory Council of Texas. Except for the amounts
relating to the City, the City has not independently verified the accuracy or completeness of such
information, and no person should rely upon such information as being accurate or complete. Further-
more, certain of the entities listed below may have issued additional bonds since the date stated in the
table, and such entities may have programs requiring the issuance of substantial amounts of additional
bonds the amount of which cannot be determined. The following table reflects the estimated share of
overlapping funded debt of these various taxing bodies.
Taxing Jurisdiction
Round Rock, City of
Round Rock Independent School District
Williamson County
Travis County
Northeast Round Rock Road District 01
Southeast Williamson County Road District 111
Georgetown Independent School District
Total Direct and Overlapping Funded Debt
Ratio of Direct and Overlapping Funded Debt
to Taxable Assessed Valuation
Estimated
Total 96 Overlapping
Funded Debt Applicable Funded Debt
$ 44,966,000 100.0096 $44,966,000
123,766,111 27.7796 34,369,849
15,675,000 17.2996 2,710,207
195,414,011(1) 0.15% 293,121
10,300,000 73.3696 7,556,080
5,850,000 52.7196 3,083,535
18,670,000 0.0796 13,069
Per Capita Overlapping Funded Debt $ 2,818.00
(1) Includes $138,824,014 of Limited Tax Debt and $56,589,997 of Unlimited Tax Debt.
Interest and Sinking Fund Budget Projection
Estimated General Purpose Debt Service Requirements,
Fiscal Year Ending 1990 $4,931,023
Interest and Sinking Fund, 9L30-89 $1,294,933
1990 Interest and Sinking Fund Tax Levy @ 94% Collection 2,930,482
Budgeted Transfers (Water 4 Sewer System Debt) 2,060,259
Estimated Investment Income 150,000 6, 435,674
Estimated Balance, 9 - 30 - 90 $1,504,651
- 14 -
$92,991,861
8.896
Computation of Self - Supporting Debt
Net Revenue from Water $ Sewer System, Fiscal Year Ended 1989 $5,358,410
Less: Average Annual Requirements for Revenue Bonds 1,631,784
Balance Available for Other Purposes $3,726,784
System General Obligation Bond Requirements, 1990 Fiscal Year 2,060,259
Balance
$1,666,367
Percentage of System General Obligation Bonds Self- Supporting 100.00%
Authorized General Obligation Bonds
Amount
Date Amount Heretofore Unissued
Purpose Authorized Authorized Issued Balance
North Fork Project 9 -06 -80 X10,000,000. 5 8,415,000 $1,585,000
Street and Drainage Improvements 6 -25 -85 9,913,000 9,913,000 -0-
Park Land Acquisition 6 -25 -85 4,000,000 4,000,000 -0-
Park Improvements 6 -25 -85 225,000 225,000 -0-
Fire Station Improvements 6 -25 -85 1,155,000 1,155,000 -0-
Police State Improvements 6 -25 -85 127,000 127,000 -0-
Library Improvements 6 -25 -85 460,000 460,000 -0-
$25,880,000 $24,295,000 1TTEYTOT
Anticipated Issuance of General Obligation Debt
The City is investigating seeking voter approval for additional authority to meet a capital plan which may
call for the issuance of as much as $8.0 million by the end of 1991 fiscal year.
Funded Debt Limitation
No direct funded debt limitation is imposed on the City under current State law or the City's Home Rule
Charter. Article XI, Section 5, of the Texas Constitution is applicable to the City, and limits its
maximum ad valorem tax rate to $2.50 per $100 assessed valuation for all City purposes. The City
operates under a Home Rule Charter which adopts the constitutional provisions.
Other Obligations
The City has no unfunded debt outstanding as of May 31, 1990.
Pension Fund
The City provides pension benefits for all of its full -time employees through a nontraditional, joint
contributory, defined contribution plan in the state -wide Texas Municipal Retirement System (TMRS), one
of over 500 administered by TMRS, an agent multiple- employer public employee retirement system. It is
the opinion of the TMRS management that the plans in TMRS are substantially defined contribution plans,
but they have elected to provide additional voluntary disclosure to help foster a better understanding of
some of the nontraditional characteristics of the plan. The program is fully discribed in Note 8 of
Appendix 8 - "Excepts from the City of Round Rock, Texas Financial Report ".
- 15 -
General Fund Revenues and Expenditure History
Revenues
ax $5,018,453 $5,066,201 $4,810,478 $4,310,730 $4,669,569
Licences and Permits 95,105 115,198 239,756 446,839 448,758
Charges for Services 342,167 370,999 329,967 119,511 117,260
Fines and Forfeitures 459,258 350,044 287,863 271,037 161,998
Miscellaneous 361,258 323,871 476,356 476,617 634,862
Total Revenues $6,276,241 $6,226,313 $6,144,420 $5,624,734 $6,032,447
Expenditures
General Government $2,132,000 $2,163,370 $1,884,237 $1,757,654 $1,369,118
Public Safety 2,504,600 2,256,009 2,129,956 1,923,575 1,445,661
Public Works 1,318,300 1,240,441 1,234,839 1,406,864 1,143,732
Parks and Recreation 970,400 950,413 880,969 890,729 684,114
Total Expenditures $6,925,300 $6,610,233 $6,130,001 $5,978,822 $4,642,625
Excess (Deficiency)
of Revenues Over
Expenditures $ (649,059) $ (383,920) $ 14,419 $ (354,088) $1,389,822
Budgeted Transfersln $ 746,905 $ 557,748 $ 641,532 $ 542,000 $ 908,392
Budgeted Transfers Out -0- (4,860) (101,064) -0- (1,812,617)
Total Transfers $ 746,905 $ 552,888 $ 540,468 $ 542,000 $ (904,225)
Netlncrease(Decrease) $ 97,846 $ 168,968 $ 554,887 $ 187,912 $ 485,597
Other Miscellaneous Adjustments -0- (85,317) -0- -0- -0-
Beginning Fund Balance 2,841,895 2,758,244 2,203,357 2,015,445 1,529,848
Ending Fund Balance $2,939,741 $2,841,895 $2,758,244 $2,203,357 $2,015,445
Source: City of Round Rock Finance Department.
FINANCIAL INFORMATION
For Fiscal Year Ended September 30,
1989 1988 1987 1986 1985
-16-
Municipal Sales Tax History
The City has adopted the Municipal Sales and Use Tax Act, VATCS, Tax Code, Chapter 321, which
grants the City the power to impose and levy a 1% Local Sales and Use Tax within the City; the proceeds
are credited to the General Fund and are not pledged to the payment of the Certificates. 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, for the years shown, has been:
Fiscal
Year 96 of Equivalent of
Ended Total Ad Valorem Ad Valorem Per
9 -30 Collected Tax Levy Tax Rate Ca ita
1980 444,733 35.7696 $0.2358 $32.94
1981 532,104 32.92% 0.1583 36.70
1982 728,628 36.1996 0.2065 40.71
1983 991,345 44.4696 0.2550 53.59
1984 1,425,938 54.9996 0.3066 62.38
1985 1,681,940 40.5296 0.1609 61.60
1986 1,707,426 40.9896 0.1683 57.33
1987 1,555,403 51.1496 0.1329 50.62
1988 2,096,000 41.6296 0.1729 67.58
1989 2,495,177 51.0496 0.2144 75.61
•Based on estimated population for all years.
Financial Administration
The financial administration of the City is vested in the Department of Finance. The Department of
Finance operates under the Director of Finance, who is appointed by the City Manager. Required
activities of the Department of Finance are control, custody and disbursement of City funds, assessment
and collection of taxes and issuance of licenses. Other activities of the department include data
processing, utility billing and collections, internal service fund operation, annual budget preparation and
interim and annual financial reports.
Financial Policies
Basis of Accounting ... The City's accounting records of the governmental fund revenues and
expenditures are recognized on the modified accrual basis. Revenues are recognized in the accounting
period in which they are available and measurable. Expenditures are recognized in the accounting period
in which the fund liability is incurred, if measurable, except for unmatured interest on general long -term
debt. The City received GFOA certification of its 1987, 1988 and 1989 financial report.
The accrual basis of accounting is utilized by proprietary funds. Under the accrual basis of accounting,
revenues are recognized in the accounting period in which they are earned and become measurable.
Expenses are recorded in the accounting period incurred, if measurable.
General Fund Balance... The City policy is to maintain surplus and unencumbered fund equal to four
months of expenditures in the General Fund. This allows the City to avoid interim borrowing pending tax
receipts.
Use of Bond Proceeds, Grants, etc.... The City's policy is to use bond proceeds, grants, revenue sharing
or other non- recurring revenues for capital expenditures only. Such revenues are never to be used to fund
City operations.
Budgetary Procedures ... The City Charter establishes the fiscal year as the twelve -month period
beginning October 1. The departments submit to the City Manager a budget of estimated expenditures for
the ensuing fiscal year by the first of June. The City Manager subsequently submits a budget of estimated
expenditures and revenues to the City Council by August 1. The City Council shall hold a public hearing
on the budget after giving at least 7 days notice of the hearing in the official newspaper of the City. The
Council shall then make any changes in the budget as it deems advisable and shall adopt a budget prior to
October 1.
During the fiscal year, budgetary control is maintained by the review of departmental appropriation
balances with purchase orders prior to their release to vendors.
Departmental appropriations that have not been expended lapse at the end of the fiscal year. Therefore,
funds that were budgeted and not used by the departments during the fiscal year are not available for
their use unless appropriated in the ensuing fiscal year's budget.
Fund Investments ... The City investment policy parallels state law which governs investment of public
funds. The City generally restricts investments to direct obligations of the United States Government and
to insured or collateralized bank certificates of deposits.
- 17 -
OTHER RELEVANT INFORMATION
Ratings
The presently outstanding tax supported debt of the City is rated "A" by Moody's Investors Service, Inc.
,( "Moody's ") and "A-" by Standard & Poor's Corporation ( "S &P "). Applications for contract ratings on this
issue have been made to Moody's and S&P. 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 or both of them, may have an adverse effect on the market price of the Certificates.
Tax Exemption
In the opinion of McCall, Parkhurst & Horton, Dallas, Texas, Bond Counsel, under existing statutes,
regulations, published rulings and court decisions, interest on the Certificates is excludable from the gross
income of the owners of the Certificates for federal income tax purposes. In expressing their opinion that
interest on the Certificates is excludable from the gross income of the owners of the Certificates, Bond
Counsel will rely on the City's no- arbitrage certificate, and will assume compliance by the City with
certain covenants of the City with respect to the use and investment of the proceeds of the Certificates.
Failure by the City to comply with these covenants may cause the interest on the Certificates to become
includabie in gross income retroactively to the date of issuance of the Certificates.
A portion of the interest on the Certificates will be includable as an adjustment for book income or
adjusted earnings and profits to calculate alternative minimum taxable income for purposes of
determining the alternative minimum tax imposed on corporations by section 55 of the Internal Revenue
Code of 1986 (the "Code "), and for purposes of the environmental tax imposed on corporations by section
59A of the Code. In addition, certain foreign corporations doing business in the United States may be
subject to the new 'branch profits tax" on their effectively- connected earnings and profits including tax -
exempt interest such as interest on the Certificates. Furthermore, in the case of an S corporation,
interest on the Certificates is treated as "passive investment income" which is subject to the tax imposed
by section 1375 of the Code.
The Code includes as an individual and corporate alternative minimum tax preference item, the interest
on certain "private activity bonds" issued after August 7, 1986. In the opinion of Bond Counsel, the
interest on the Certificates is not an alternative minimum tax preference item under section 57(a)(5) of
the Code.
Except as stated above with respect to the exclusion of the interest on the Certificates from gross
income, Bond Counsel expresses no opinion as to any other federal income tax consequences of acquiring,
carrying, owning or disposing of the Certificates.
The law upon which Bond Counsel has based their opinion is subject to change by the Congress and the
Department of the Treasury and to subsequent judicial and administrative interpretation. There can be no
assurance that such law or the interpretation thereof will not be changed in a manner which would
adversely effect the tax treatment of ownership of the Certificates.
Prospective purchasers of the Certificates should be aware that the ownership of tax- exempt obligations
may result in collateral federal income tax consequences to financial institutions, property and casualty
insurance companies, individual recipients of Social Security or Railroad Retirement benefits and
taxpayers who may be deemed to have incurred or continued indebtedness to purchase or carry tax -
exempt obligations. Prospective purchasers falling within any of these categories should consult their own
tax advisors as to the applicability of these consequences.
Qualified Tax -Exempt Obligations
Section 265 of the Code provides, in general, that interest expense incurred to acquire or carry tax -
exempt obligations is not deductible from the gross income of the holder. For certain holders that are
"financial institutions" within the meaning of such section, complete disallowance of such expense would
apply to taxable years beginning after December 31, 1986, with respect to tax-exempt obligations
acquired after August 7, 1986. Section 265(b) of the Code provides an exception to this rule for interest
expense incurred by financial institutions to carry tax -exempt obligations (other than private activity
bonds) which are designated by an issuer as "qualified tax -exempt obligations." The City may only
designate an issue as an issue of "qualified tax-exempt obligations" where not more than $10 million of
tax -exempt obligations are issued by the City during the calendar year in which the issue so designated is
issued.
The City expects to designate the Certificates as "qualified tax -exempt obligations." Furthermore, the
City will represent that it has or will take such action as is necessary for the Certificates to constitute
- 18 -
"qualified tax - exempt obligations." Accordingly, it is anticipated that financial institutions that purchase
the Certificates will not be subject to the 100 percent disallowance of interest expense under section 265
of the Code. However, such purchasers would be subject to the 20 percent interest disallowance rule
applicable under prior law.
Tax Accounting Treatment of Original Issue Discount
The initial public offering price to be paid for one or more maturities of the Certificates (the "Original
Issue Discount Certificates ") may be less than the principal amount thereof. In such event, the difference
between (1) the amount payable at the maturity of each Original Issue Discount Certificate, and (ii) the
initial offering price to the public of such Original Issue Discount Certificate constitutes original issue
discount with respect to such Original Issue Discount Certificate in the hands of any owner who has
purchased such Original Issue Discount Certificate in the initial public offering of the Certificates. Under
existing law, such initial owner is entitled to exclude from gross income (as defined in Section 61 of the
Code) an amount of income with respect to such Original Issue Discount Certificate equal to that portion
of the amount of such original issue discount allocable to the period that such Original Issue Discount
Certificate continues to be owned by such owner. See 'Tax Exemption" herein for a discussion of certain
collateral federal tax consequences.
In the event of the redemption, sale or other taxable disposition of such Original Issue Discount
Certificate prior to stated maturity, however, the amount realized by such owner in excess of the basis of
such Original Issue Discount Certificate in the hands of such owner (adjusted upward by the portion of the
original issue discount allocable to the period for which such Original Issue Discount Certificate was held
by such initial owner) is includable in gross income.
Under existing law, the original issue discount on each Original Issue Discount Certificate is accrued daily
to the stated maturity thereof (in amounts calculated as described below for each six -month period ending
on the date before the semiannual anniversary dates of the date of the Certificates and ratably within
each such six -month period) and the accrued amount is added to an initial owner's basis for such Original
Issue Discount Certificate for purposes of determining the amount of gain or loss recognized by such
owner upon the redemption, sale or other disposition thereof. The amount to be added to basis for each
accrual period is equal to (a) the sum of the issue price and the amount of original issue discount accrued
in prior periods multiplied by the yield to stated maturity (determined on the basis of compounding at the
close of each accrual period and properly adjusted for the length of the accrual period) less (b) the
amounts payable as current interest during such accrual period on such Certificate.
The federal income tax consequences of the purchase, ownership, redemption, sale or other disposition of
Original Issue Discount Certificates which are not purchased in the initial offering at the initial offering
price may be determined according to rules which differ from those described above. All owners of
Original Issue Discount Certificates should consult their own tax advisors with respect to the
determination for federal, state and local income tax purposes of interest accrued upon redemption, sale
or other disposition of such Original Issue Discount Certificates and with respect to the federal, state,
local and foreign tax consequences of the purchase, ownership, redemption, sale or other disposition of
such Original Issue Discount Certificates.
Litigation
It is the opinion of the City Attorney and City Staff that there is no pending litigation against the City
that would have a material adverse financial impact upon the City or its operations.
Registration and Qualification of Certificates for Sale
The sale of the 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 Certificates have not been
qualified under the Securities Act of Texas in reliance upon various exemptions contained therein; nor
have the Certificates been qualified under the securities acts of any jurisdiction. The City assumes no
responsibility for qualification of the Certificates under the securities laws of any jurisdiction in which
the Certificates may be sold, assigned, pledged, hypothecated or otherwise transferred. This disclaimer
of responsibility for qualification for sale or other disposition of the 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 and Eligibility to Secure Public Funds in Texas
Section 9 of the Bond Procedures Act provides that the Certificates "shall constitute negotiable
instruments, and are investment securities governed by Chapter 8, Texas Uniform Commercial Code,
notwithstanding any provisions of law or court decision to the contrary, and are legal and authorized
investments for banks, savings banks, trust companies, building and loan associations, savings and loan
associations, insurance companies, fiduciaries, and trustees, and for the sinking fund of cities, towns,
villages, school districts, and other political subdivisions or public agencies of the State of Texas ". Such
Act further provides that the Certificates are eligible to secure deposits of any public funds of the state,
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its agencies and political subdivisions, and are legal security for those deposits to the extent of their
market value. No review by the City has been made of the laws in other states to determine whether the
Certificates are legal investments for various institutions in those states.
Legal Opinions and No Certificate
The City will furnish a complete transcript of proceedings had incident to the authorization and issuance
of the Certificates, including the unqualified approving legal opinion of the Attorney General of Texas
approving the Initial Certificate and to the effect that the Certificates are valid and legally binding
obligations of the City, and based upon examination of such transcript of proceedings, the approving legal
opinion of Bond Counsel, to like effect and to the effect that the interest on the Certificates will be
excludable from gross income for federal income tax purposes under Section I03(a) of the Code, subject to
the matters described under "Tax Exemption" herein, including the alternative minimum tax on
corporations. The customary closing papers, including a certificate to the effect that no litigation of any
nature has been filed or is then pending to restrain the issuance and delivery of the Certificates, or which
would affect the provision made for their payment or security, or in any manner questioning the validity
of said Certificates 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 Certificates in the Official Statement to
verify that such description conforms to the provisions of the Ordinance. The legal fee to be paid Bond
Counsel for services rendered in connection with the issuance of the Certificates is contingent on the sale
and delivery of the Certificates. The legal opinion will be printed on the Certificates.
Authenticity of Financial Data and Other Information
The financial data and other information contained herein have been obtained from the City's records,
audited financial statements and other sources which are believed to be reliable. There 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 Certificates. The Financial Advisor's fee for services rendered with respect to the sale of the
Certificates is contingent upon the issuance and delivery of the Certificates. First Southwest Company
may submit a bid for the Certificates, either independently'or as a member of a syndicate organized to
submit a bid for the Certificates. First Southwest Company, in its capacity as Financial Advisor, has not
verified and does not assume any responsibility for the information, covenants and representations
contained in any of the documentation with respect to the federal income tax status of the Certificates.
Certification of the Official Statement
At the time of payment for and delivery of the 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 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 the descriptions and statements, including financial data, of or pertaining to
entities, other than the City, and their activities contained in such Official Statement are concerned, such
statements and data have been obtained from sources which the City believes to be reliable and 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 Ordinance authorizing the issuance of the Certificates will also 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 Certificates by the Purchaser.
ATTEST:
JOANNE LAND
City Secretary - 20 -
MIKE ROBINSON
Mayor
City of Round Rock, Texas
APPENDIX A
GENERAL INFORMATION REGARDING THE CITY
• LUBBOCK
FORT WORTH • • DALLAS
X
AUSTIN *
•
SAN ANTONIO
HOUSTON •
ROUND ROCK
The City
Location
The City of Round Rock is located in Williamson County, 8 miles north of Austin and 85 miles south of
Waco on Interstate Highway 35. The City is also situation on US.,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 has been marked as one of the fastest
growing cities in the State and has prospered from its tremendous economic growth.
Round Rock became the first Williamson County city to collect over 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 Mall at Interstate Highway 35 and
Farm -to- Market Road 1325. 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 build a large discount department store on Interstate Highway 35. A new shopping center located on
Highway 620 was recently completed.
Major Industry
Industries located within the corporate limits and in the City's immediate surrounding area produce
pharmaceuticals, office products, computer systems and communication equipment. Various other
industries and major employers such as the school district are located in the Round Rock area. The
following is a partial list of major employers and the number of people they employ.
Company Description Employees
Farmers Insurance Insurance 636
Tellabs Telephone Components 435
Wayne Dresser Pump Controls 310
Sysco Food Food Distributor 227
Texas Nuclear Electronic Measurements 190
Cypress Semiconductor Semiconductors 170
Carroll Touch Touch Control Monitor Screens 130
McNeil Consumer Products Tylenol Products 150
Westinghouse Industrial Motors 120
Dupont Instruments Temperature Sensors 110
AMP Packaging Systems Computer Backplanes 105
Preferred Stamping High Tech Sheet Metal Manufacturing 80
Infolab Laboratory Supplies 22
Labor Market Profile
Austin
April 1990 March 1990 April 1989 April 1988
Total Civilian Labor Force 430,100 428,900 431,300 427,400
Total Unemployment 18,900 17,500 24,000 24,000
Percent Unemployed 4.496 4.196 5.696 5.696
Total Employment 411,200 411,400 407,300 403,400
State of Texas
(In Thousands)
April 1990 March 1990 April 1989 April 1988
Total Civilian Labor Force 8,386.2 8,346.5 8,359.9 8,204.2
Total Unemployment 499.2 472.5 581.2 574.9
Percent Unemployed 6.096 5.7% 7.096 7.096
Total Employment 7,887.0 7,874.0 7,778.7 7,629.3
Source: Texas Employment Commission.
City Government and Community Services
The City is a Council Manager form of government with a Mayor and six councilmembers. A fire
department consisting of 31 full -time and 33 volunteer part -time members and 14 fire fighting vehicles, a
police staff of 51 and 32 vehicles, and 976 acres of parks, which include eleven tennis courts, 22 baseball
A -1
fields, 5 soccer fields, 2 swimming pools and other facilities are available to the community. A public
golf course is under construction. The Round Rock Leader, a weekly newpaper, an Austin daily
newspaper, and a public library with 48,000 volumes are just a few of the many community services
offered to the citizens of Round Rock.
Completed in late 1983 is the Round Rock Community, Hospital, located on a 100 acre site near Brushy
Creek between Round Rock and the U.S. Highway 183 area. This hospital has 120 doctors which are
allowed privileges. The Creekside Minor Emergency Center, located in Round Rock, has 5 doctors on call
24 hours a day. Other hospital services are easily accessible in nearby Austin and Georgetown.
Financial Institutions
The City has access to four banks and two major savings and loan associations.
Utilities
The City is served by Southwestern Bell Telephone Company, Texas Utilities Electric 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 the Executive Airpark, a private
airport located near the City. Two major railroads, two motor freight lines and a bus line serve the City
on routinely scheduled intervals.
Education Facilities
The City of Round Rock is located entirely within one of the fastest growing school districts in the State,
the Round Rock Independent School District. The District is comprised of 110 square miles with a current
1989 Net Taxable Assessed Valuation of $3,434,695,003. 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.
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. Each year, the weekend after the Fourth of July, Round Rock holds Frontier Days, a
20 year tradition which attracts many people. The streets are lined with entertainment, arts, crafts, food
booths; and many events are scheduled all over town. The event has become an annual affair and draws
crowds of several thousand. Also, starting in 1980 the Chamber of Commerce sponsored a Merchants Fair
with over 60 booths, giving information about Round Rock businesses and services.
Source: Round Rock Chamber of Commerce.
A -2
APPENDIX B
EXCERPTS FROM THE
CITY OF ROUND ROCK, TEXAS
ANNUAL FINANCIAL REPORT
For the Year Ended September 30, 1989
The information contained in this Appendix consists of excerpts from the City of
Round Rock Annual Financial Report for the Year Ended September 30, 1989, and
is not intended to be a complete statement of the City's financial condition.
Reference is made to the complete Report for further information.
APPENDIX C
FORM OF BOND COUNSEL'S OPINION
APPENDIX D
BOND YEARS
BOND YEARS
Accuaulated
!00r Amount Bond Years Bond Years 10.1
1991 $ 40,000 43.333 43.333 1991
1992 40,000 83.333 126.666 1992
1993 45,000 138.750 265.416 1993
1994 45,000 183.750 449.166 1994
1995 50,000 254.167 703.333 1995
1996 50,000 334.583 1,037.916 1996
1997 60,000 425.000 1,462.916 1997
1998 60,000 485.000 1,947.916 1998
1999 65,000 590.417 2,538.333 1999
2000 70,000 705.833 3,244.166 2000
2001 75,000 831.250 4,075.416 2001
2002 80,000 966.667 5,042.083 2002
2003 85,000 1,112.083 6,154.166 2003
2004 95,000 1,337.917 7,492.083 2004
2005 100,000 1,508.333 9,000.416 2005
2006 110,000 1,769.167 10,769.583 2006
2007 115,000 1,964.583 12,734.166 2007
2008 125,000 2,260.417 14,994.583 2008
2009 135,000 2,576.250 17,570.833 2009
2010 145,000 2,912.083 20,482.916 2010
Average Maturity -- --- - - - - -- 12.842 Years