HomeMy WebLinkAbout14175 ORD - 02/15/1978•
RESOLUTION
APPROVING THE FORM OF THE OFFICIAL STATEMENT
PERTAINING TO CITY OF CORPUS CHRISTI, TEXAS,
GENERAL IMPROVEMENT BONDS, SERIES 1978, AND
AUTHORIZING, RATIFYING AND APPROVING THE
OFFICIAL STATEMENT AND THE USE THEREOF IN THE
OFFERING AND SALE OF SAID BONDS
WHEREAS, the City of Corpus Christi is authorized
to issue and sell its bonds heretofore approved at elections
held June 26, 1976 and November 8, 1977, all pursuant to the
Constitution and laws of Texas; and
WHEREAS, it is the desire of the City Council that
the Official Statement pertaining to certain of said bonds
designated City of Corpus Christi, Texas, General Improvement
Bonds, Series 1978, and the use of said Official Statement
should be duly authorized, ratified and approved.
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF
CORPUS CHRISTI, TEXAS:
1. That the Official Statement, including the Officia.
Notice of Sale, as set forth herein is hereby approved as to
form and content.
2. That the use of the Official Statement and all
addenda, if any, thereto in the offering and sale of said bonds
is hereby authorized, ratified and approved.
3. That the form of the Official Statement shall be
substantially as follows, to -wit:
THE STATE OF TEXAS
COUNTY OF NUECES
CITY OF CORPUS CHRISTI
On this the 15th day of February, 1978, the City
cil of the City of Corpus Christi, Texas, convened in
lar Meeting, with the following members of said Council
officials of said City present, to -wit:
Gabe Lozano, Sr., Mayor
Bob Gulley, Mayor Pro -Tem
David Diaz
Ruth Gill
Edward L. Sample
Joe Holt
R. Marvin Townsend,
J. Bruce Aycock,
Harold F. Zick,
Bill G. Read,
Councilmen
City Manager
City Attorney
Director of Finance
City Secretary
_1+..1 I g...4nv
lith the following absent:
!onstituting a quorum, at which time the following among other
usiness was traansacted:
presented for the consideration of
he Council a resolution. The resolution was read by the City
ecretary. The Mayor presented to the Council a communication
n writing pertaining to said proposed resolution, as follows:
"Corpus Christi, Texas
THE CITY COUNCIL
us Christi, Texas
tlemen:
The public importance and pressing need for the
ermanent improvements to be constructed by the use of the pro -
eeds of bonds contemplated to be sold pursuant to an offering
ade by an Official Statement to be authorized, ratified and
pproved by a resolution create an emergency and an imperative
ublic necessity requiring the suspension of rules and Charter
rovisions requiring resolutions to be considered and voted upon
t three regular meetings. I, therefore, request that the City
ouncil adopt the proposed resolution authorizing, ratifying and
pproving the use of said Official Statement as an emergency
easure. You will please consider this request in connection
ith the resolution which is to be introduced for adoption by
he City Council on this subject. cf�
MICROFILM
"Yours very truly,
/s/ Gabe Lozano, Sr. JUL U 7 _
Mayor"
Councilman moved that the Charter
provision prohibiting resolutions from being adopted finally
on the date introduced be suspended for the reasons stated
in the written request of the Mayor and stated in the emergency
clause of the resolution. The motion was seconded by Councilman
_,P✓LU �G The motion was carried by a unanimous vote
by the City Council, viz.:
AYES: All present voted Aye.
NAYS: None.
The Mayor requested that the records show that he
voted Aye. This was done.
Councilman moved that the resolutio
be adopted finally. The motion was seconded by Councilman
The motion was carried by the following vote:
AYES: All present voted Aye.
NAYS: None.
The Mayor requested that the records show that he
voted Aye. This was done.
The Mayor announced that the resolution has been
adopted. The resolution is as follows:
$11,000,000 QTY OF CORPUS CHRISTI, TEXAS
GENERAL IMPROVEMENT BONDS
SERIES 1978
Average Maturity 11.909
u
Accumulated
Year
Amount
Bond Years
1979
$900,000
800
1980
800,000
900
1981
850,000
1,950
1982
400,000
9,550
1988
450,000
5,800
1984
500,000
8,800
1985
500,000
12,900
1986
500,000
16,800
1987
500,000
20,800
1988
550,000
26,900
1989
600,000
82,900
1990
600,000
40,100
1991
600,000
47,900
1992
600,000
56,800
1999
650,000
66,050
1994
700,000
77,250
1995
700,000
89,150
1996
700,000
101,750
1997
750,000
116,000
1998
750,000
131,000
Average Maturity 11.909
u
OFFICIAL BID FORM
•
PROPOSAL FOR
$11,000,000 CITY OF CORPUS CHRISTI, TEXAS
GENERAL IMPROVEMENT BONDS
SERIES 1978
The City of Corpus Christi February 15, 1978
Corpus Christi, Texas
Gentlemen:
Subject to the terms of the Official Statement and Official Notice of Sale we offer to pay par plus
accrued interest to date of delivery and a cash premium of $ for $11,000,000 City
of Corpus Christi, Texas. General Improvement Bonds, Series 1978 hearing interest at the following
rates:
For Bonds Maturing Coupon Rate
1979 through %
through %
through %
through %
through %
We agree to accept delivery and make payment for the bonds without cast to us at
Rank, Austin, Texas; or at the
and in accordance with the Official Notice of Sale
agree to pay all expenses.
Cashiers Check No. _ r4aued by
payable unconditionally to the City of Corpus Christi, in the amount of $220,000 (is attached hereto)
(has been made available to you prior to the opening of this bid) as a Good Faith Deposit for disposition
in accordance with the Official Notice of Sale. Upon delivery of the bonds, said check shall be (deducted
from the purchase price) or (returned to us). Strike out inapplicable phrases.
By
Account Manager
By
Authorized Representative
Accepted by the Ciy Council on this day of , 1978
Mayor, City of Corpus Christi, Texas
ATTEST:
City Secretary
Please supply the following information which is not a part of this bid:
Total Interest Cost $
Less Cash Premium $
Net Interest Cost $
Effective Rate of Interest %
Receipt is acknowledged on behalf of bidder of above - described Good Faith Check this day
Of . 1978
By
CITY OF CORPUS CHRISTI, TEXAS
Summary of General Obligation Debt requirement by years including these $11,000,000 calculated
at an estimated 5% interest rate.
Fiscal Year
Ending
July 31
Principal
Interest
Total
1978
$ 5,266,000
$ 9,059,877
$ 8,319,577
1979
5,612,000
3,374,292
9,006,292
1980
5,508,000
3,115,187
8,623,187
1981
5,344,000
2,863,029
8,207,029
1982
5,260,000
2,605,785
7,865,785
1983
5,150,000
2,356,841
7,506,841
1984
5,080,000
2,109,246
7,189,246
1985
4,590,000
1,866,113
6,456,112
1986
4,035,000
1,642,410
5,677,410
1987
5,535,000
1,437,870
4,972,870
1988
3,450,000
1,265,237
4,715,237
1989
3,200,000
1,099,119
4,299,119
1990
3,050,000
937,769
1,987,769
1991
2,800,000
783,038
3,583,038
1992
2,750,000
642,125
3,392,125
1993
2,525,000
508.150
3,033,150
1994
2,175,000
381,325
2,556,325
1995
1,950,000
272,000
2,222,000
1996
1,550,000
175,000
1,725,000
1997
1,400,000
102,500
1,502,500
1998
750,000
37,500
787,500
$75,000,000
$30,627,913
$105,627,913
Source: Unaudited
Cash in bank (Exhibit H -3)
Cash with paying agent (Note A)
Time deposits (Exhibits A -13 and 14)
Other securities (Exhibits A -13 and 14)
Taxes receivable
Leas reserve for uncollected taxes
TOTAL ASSETS
CURRENT LIABILITIES:
Matured bonds not presented for payment
Matured interest coupons not presented
for payment
Total current liabilities
M
m
FUND BALANCE (Exhibit H -2)
TOTAL LIABILITIES AND FUND BALANCE
CITY OF CORPUS CHRISTI. TEXAS
DEBT SERVICE FUND
BALANCE SHEET
$8.044.993 7 356 780 $6,968,844 6 183 703 $5,688,660
LIABILITIES AND FJND BALANCE.
July 31
2
1`' 6
�
2
$ 33,000
ASSETS
132 636
1 9 0
1 3 �7
119, � 7
$ 88,778
$ 98,275
$ 37,892
$ 108,317
$ 53,544
153,215
199,505
205,952
154,386
196,116
7,349,OD0
6,299,000
5,674,000
4,87o,000
4,264,000
454,000
760,000
1,051,000
1,051,000
1,175,000
662,655
690,374
616,896
559,572
811,193
(682.6 )
(690,374)
(616,896)
(559,572)
(811,193)
$8.044.993 7 356 780 $6,968,844 6 183 703 $5,688,660
LIABILITIES AND FJND BALANCE.
$ 89,000
8 60,000
$ 67,000
$ 10,000
$ 33,000
19 5
132 636
1 9 0
1 3 �7
119, � 7
$7,905.3
$7,224,144
$6,832,894
$6,102,38 6
$5,568,663
8 044 3
j7 35_6 780
g.268 844
6 18 703
5 688 660
Note A: Cash with paying agent includes $13,619 for principal and interest maturing 8/1/77.
Exhibit 11 -2
Fund balance, August 1, 1976
Additions:
Property taxes
Interest income
Contributions from operating funds
Payment from Hospital District
Accrued interest m bands sold
Premium on bonds sold
Deductions:
Bonds retired
Bond interest paid
Paying agent'. fees
Fund balance, July 31, 1977
DEBT SERVICE FJND
ANALYSTS OF C.-WIGES IN FUND BALANCE
Y'AR E4."D£D JULY 31, 1977
$ 7,224,144
$6,768,007
949,447
435,866
115,338
24,941
46 8 2 645
15,517, 9
$4,880,000
2,725,893
6,499 7,612,392
$ 7.905,397
•
M
w
CITY OF CORPUS CERtISTI, TEXAS
GENERAL ^UND
SUtR1ARY OF REVENIiCS AND EXFENDTTURFS - ESTTIMTED AND ACTUAL
•
YEAR ENDED JULY
31, 1977
1977
Budgetary
Actual
Over
(Under)
For Year Ended
July 31
Estimate
For Year
Estimate
197,
1975
IgJ4
1973
REVERUFS :
General property taxes
$ 10,213,879
$ 10,309,692 $
94,813
$ 9,785,745
$ 8,185,698
$ 7,746,621
$ 6,965,64B
City sales tax (1 %)
6,542,200
6,852,194
309,994
6,002,747
5,469,968
4,552,413
4,062,785
Liquor drink tax
105,000
245,151
140,151
102,626
77,184
87,609
76,401
B:s inees tries
1,669,300
1,572,494
(96,806)
1,408,058
1,502,341
1,127,974
11019,209
Licenses and permits for street use
-
86,385
94,414
Business licenses
78,080
`15,763
(2,317)
76,265
76,642
67,799
66,937
Non- business licenses and permits
193,500
246,641
53,141
215,991
215,571
199,623
270,851
Municipal Court
926,'r7o
925,524
(1,246)
938,762
790,1190
684,627
657,1155
Interest and rents
142,100
134,616
(7,424)
162,989
165,686
116,843
132,267
General government services
42,700
51,209
8,509
40,641
31,954
37,016
36,446
,
Public safety services
87,000
1o2,665
15,665
81,145
63,427
61,886
62,458
Sanitation services
2,148,000
2,153,295
5,295
2,115,248
2,072,251
1,817,804
1,803,017
'
Health services
99,250
U8,630
19,380
100,329
88,763
76,153
76,946
_
Library services
20,700
20,902
202
17,386
17,327
17,579
17,860
Recreation services
575,500
505,143
(70,357)
600,835
546,003
454,968
459,695
Charges to other governmental agencies
36.7,077
345,423
(21,654)
338,749
263,2+4
209,905
164,474
other revenues
194,622
179,025
(15,(97)
206,157
132,085
156,635
150,480
,
Disaster damages
--
--
--
__
--
--
23,408
Administrative servlce charges
1,199,876
1,187,876
(12,000)
1,063,796
920,637
796,400
717,900
Other interfund aoctributions
1,158,943
1,251,048
92,105
1,6Bo,483
1,257,442
1,085,703
1,211,916
,
other lnterfund Zeeiots
2,939,665
2,991,021
31,356
3,027,887
2,514,468
1,916,748
622,035
Total revenues
$ 28,724,362
$ 29,267,372 $
543,010
$ 27,965,839
$ 24,391,481
$ 21,300,691
$ 18,692,602
EXPENDITURES:
'
General government control
$ 973,368
$ 959,976 $
(13,392)
$ 857,837
$ 722,385
$ 540,708
$ 461,328
Data Processing
--
'-
--
__
--
209,541
Staff agencies
3,003,340
2,907,181
(96,159)
2,741,282
2,408,671
2,248,942
1,597,821
Public safety _ police
6,484,524
6,720,662
236,138
6,o29,211
5,054,930
4,330,963
3,878,451
Public safety - fire
4,592,285
4,387,933
(204,352)
4,011,920
3,577,162
3,323,312
2,968,956
Public safety _ civil defense
23,032
21,926
(1,106)
21,360
23,751
23,907
15,397
Traffic engineering
792,056
800,804
8,748
703,292
665,679
659,110
61o,229
Inspections and operations
3,428,716
3,356,848
(71,868)
3,049,565
2,801,942
2,495,914
2,652,301
Engineering services
707,170
688,125
(19,0115)
541,o43
442,916
359,161
275,715
Streets
3,403,523
3,173,298
(230,225)
3,014,864
2,830,841
2,290,887
2,145,121
Health
1,160,310
1,163,638
3,328
1,107,234
1,105,476
909,689
742,687
nity enrichment _ director
56,603
55,758
(845)
53,610
67,208
MC
Libraries
765,218
71o,43i
(54,787)
677,64o
594,872
500,538
451,E
Parke and recreation
2,679,897
2,721,048
41,151
2,562,484
2,244,381
1,886,551
1,931,382
Museums
429,829
421,767
(8,062)
348,196
326,471
233,955
230,243
Federal grants
199,079
187,205
(11,874)
299,341
170,326
141,383
106,103
Transfers to other funds
657,o16
678,009
20,993
722,015
386,313
297,250
335,692
Refund of prior years- revenue
--
526
3,850
Insurance
945,201
945,201
941,872
606,900
540,500
647,600
'
Utility rate regulanions
47,042
48,041
999
1,065
Special fiscal year projects
5,250
64
(5,186)
1,117
35,391
52,468
20,000
Disaster damages
__
__
3,326
--
277,051
Reserve appropriation
190,248
(190,248)
Total expenditures
$ 30,543,707
$ 29,947,915 $
(595.792)
$ 27,654,948
$ 24,069,467
$ 20,839,088
$ 19,556,658
EXCESS OF REVENUES OVER EXPENDITURES
$ (1,819,345)
$ (680,543) $
1,138,802
280,891
$ 322,014
461,603
$ B64,o56)
16
Fund balance, August 1
Addition.:
Revenues (Exhibit B -3)
Decrease in reserve for encumbrances
Decrease in Working Capital advance to 'Transit Fund
Return of conLribution to Convention Facilities Jond F, -d
Total addition.
Deductions:
Expenditure. (Exhibit 3 -5)
Increase in reserve for snnumbrsnoes
Nueees County Water District ,#2 cares r eeivuble adjustment
Decrease of O.E.P. receivable - H- ricare Celia
Increase in —king capl`..al advance io 7rsnsl'. :tind
Adjustment _ Bayfront Science Park
•
CITY OF CORPUS CHRISTI,
GENERAL ?UND
ANALYSIS OF .' 1D * FVND BALANCE
1977
0ve
Budgetary Actual (Under) ?or Year Ended .July 31
Eet Ln..Le :'or Year Est imt 1976 1975 1974 197
$ 2,280,721 R 2,004,539 $ (276,132) $ 1,118,477 $ 1,079,639 $ 779,374 $ 1,445,600
$ 28,724,362 $ 29,267,372 $ 543,010 $ 27,765,839
23 =,889
36 ?,332
16?,000 16o,000 __
$ 28,,I),,362 29,)127,3(2 $ 703,010 $ 28,571,060
$ 30,543,707 $ 29,947,91t $ (595,792) $ 27,Cx14,948
-- 153,181 153,181 --
$ 30,543,1'!7 S 30, !01.096 $ (442,611) $ 27,684,948
8 1.61.316 $ 1,330,86`, $ 369,489 $ 2,004,589
$ 24,39L,48i $ 21,300,691 $ 18,692,602
86,230 -- 279,685
$ 2L,177,711 $ 21,300,691 $ 18,972,287
$ 24,069,467 $ 20,839,088 $ 19,5,56,658
16o,669
669 25
__ 81,830
369,332 -- --
74
$ 24,438,873 $ 21,000,426 $ 19,639,513
$ 1,118,477 $ 1,079,639 $ 779,374
•
•
CITY OF CORPUS CHRISTI, TEXAS
GENERAL P.
BAI. CE SFIF.ET
CURRENT ASSETS:
Cash in bank
Petty cash funds
Time deposits
Notes, accounts and liens receivable _ net
(Exhibit B-6)
Due from other funds (Exhibit B -7)
Due from other govern -ntal agencies (Exhibit B-8)
Inventories
Total current assets
TAXES AND ASSESSMENTS RECEIVABLE:
Delinquent taxes receivable
Nucces County Water District #2 taxes receivable
Less reserve for uncollected taxes
Total taxes and assessrenta receivable
INV MENTS IN OMEN FUNDS:
Scores land
Maintenance Service Fund
Transit Fund
Insurance Fund
Total investments
JULY 31
977 1976 1975 1973
ASSETS
$ 462,357 $ 960,316 $ 811,619 $
177,770 $ '_20,814
19,380
14,355
14,051
10,933
io,6o8
-_
__
__
_-
25,000
176,921
166,788
139,281
114,905
144,269
1,665,147
1,732,801
1,708,890
1,925,620
1,096,551
43,550
118,647
20,967
266,489
164,784
122,441
134,488
130,861
21,712
25,28
$2,489,796 $3,127,395 $2,925,669 $2,517,479 $1,587,184
$1,026,546 $1,038,153 $ 930,373 $ 843,919 $1,223,4o1
5,137 5,181 5,201 5,470 6,535
$1,031,683 $1,043,334 $ 935,574 $ 849,389 $1,229,936
1,026,546 1,o38,153 930,373 843,919 1,223,401
$ 5,137 $ 5,181 $ 5,201 $ 5,470 $ 6,535
$ 13,118 $ 8,618 $ 8,618 $ 8,618 $ 8,618
26,246 26,246 26,246 26,246 26,246
28,824 28,824 28,824 28,824 28,824
26,000 26,000 26,000 26,000 26,000
$ 94,188 $ 89,688 $ 89,688 $ 89,688 $ 89,688
OTHFP ASSETS:
Prepaid postage and usility deposits $ 450 $ 455 $ 455 $ 455 $ 455
F-perty purchased at tax sales 2,651 16,324 19,574 19,574 16,285
Total other assets ¢ 13,101 $ 16,779 $ 20,029 $ 20,029 $ 16,740
TOTAL ASSETS $2,602,222 $3,239,043 $3,040,587 $2,632,666 $1,700,147
LIABILITIES, RESERVES AND FOND BALANCE
CURRENT LIABILITIES:
Deposits:
Corpus Christi Marina Customers
Coliseum rental contracts
Demolition. contracts
Miscellaneous
Payrolls payable
Accounts payable
Sales t- payable
Due C, ,i unity Renewal Fund
Advan : from Revenue Sharing Fund I
Advance from Revenue Sharing Fund III
Advance from Revenue, Sharing Fund IV
Advance from Revenue Sbaring Ftnd V
Due Convention Facilities Bond Fund
Total current liabilities
$ 480 $ 480 $ 480 $ 480 $ 48o
16,373 16,734 15,677 13,219 11,422
120 20 120 20 120
718 718 718 1,750
$ 17,691 $ 18,052 S 16,995 $ 13,819 $ 13,772
718,750 661,2GO 543,950 435,226 365,174
3,113 16,547 8,012 3,972 1,739
50 83 26 66
-- -- -- 6,803 --
__ 138,060
-- -- -- 250,000
-- -- 4,456 --
-- 369,332 -- --
160,000
$ 739,604 $ 855,882 $ 938,317 $ 852,336 $ 380,751
RESERVES:
Encumbrances $ 531,753 $ 378,572 $ 614,461 $ 700,691 $ 540,022
Working capital advance to Transit Fund __ __ 369,332 -- --
Total reserves $ 531,753 $ 378,572 $ 983,793 700,691 $ 540,022
FUND BALANCE (Exhibit B -2) $1,330,865 $2,004.589 $1,118,477 $1,079,639 $ 779,374
TOTAL LIABILITIES, RESERVES AND FUND BALANCE $2,602,222 $3,239,043 $3,040,587 $2,632,666 $1,700,147
F-3
•
INDEX TO FINANCIAL STATEMENTS
Page
Report of Independent Certified Public Accountants ................... F -2
General Fund:
Balance Sheet ................... ............................... F -3
Analysis of Changes in Fund Balance ............................... F -4
Summary of Revenues and Expenditures - Estimated and Actual ....... F -5
General Obligation Debt Service Fund:
Balance Sheet ................... ............................... F -6
Analysis of Changes in Fund Balances .............................. F -6
General Long Term Debt -
Statement of General Long Term Debt ........................... F -7
Summary of Debt Requirements by Years ............................. F -8
Note — The City of Corpus Christi also administers the following other funds, the
assets, the liabilities, and the operations of which may not be pertinent to the
issue of the Bonds and are not included in the accompanying financial state-
ments but are included in the Director of Finance Annual Financial Report
of the City of Corpus Christi, Texas:
Special Revenue Funds
Capital Project Funds - General
Enterprise Funds
Trust and Agency Funds
General Fixed Assets Group of Accounts
Intragovernmental Funds
Grant Programs
F -1
LI
•
MEMBER, AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS
TEXAS SOG11- OF CERTIMEO PUBLIC ACCOUNTANTS
ARTURO VASQUEZ & COMPANY
CERTIFIED PUBLIC ACCOUNTANTS
EVERHART PLAZA - 4707 EVERHART
5 MAIL CORPUS CHRISTI, TEXAS 78411
Pp O RBOX 8330 --
Tend. TEL. AC S12 - S34 -2636
The Honorable Mayor and Commissioners
City of Corpus Christi
Corpus Christi, Texas
We have examined the financial statements of the certain funds and
account groups of the City of Corpus Christi, Texas for the years
ended July 31, 1977, 1976, 1975 and 1974 listed in the foregoing
index. Our examination was made in accordance with generally
accepted auditing standards and accordingly included such tests
of the accounting records and such other auditing procedures as
we considered necessary in the circumstances. The financial
statements and schedules for the year ended July 31, 1973 were
examined by other auditors and accordingly we express no opinion
thereon.
In our opinion, except for the prior years' financial statements
mentioned above, the aforementioned financial statements and
schedules present fairly the financial position of the various
funds and account groups of the City of Corpus Christi, Texas as
of July 31, 1977, 1976, 1975 and 1974 and the results of their
operations in conformity with generally accepted accounting
principles applied on a basis consistent with that of the pre-
ceding year.
Respectfully,
ARTURO VASQUEZ COMPANY
Certified Public Accountants
November 9, 1977
F -2
LEGAL OPINIONS
The City will furnish a complete transcript of the proceedings had incident to the authorization and
issuance of the Bonds, including the unqualified approving legal opinion of the Attorney General of the
State of Texas, to the effect that the Bonds are valid and legally binding obligations of the City, and based
upon examination of such transcript of proceedings, the unqualified approving legal opinion of Messrs.
McCall, Parkhurst & Horton, bond counsel, to like effect and the effect that the interest on the Bonds, 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, or which would affect the
provision made for their payment or security, or in any manner questioning the validity of said Bonds or
the coupons appertaining thereto, will also be furnished. Messrs. McCall, Parkhurst & Horton were not
requested to participate, and did not take part in the preparation of the Official Statement, and such
firm has not assumed responsibility with respect or undertaken independently to verify any of the informa-
tion contained therein, except that, in its capacity as Bond Counsel, such firm has reviewed the informa-
tion describing the Bonds in such Official Statement to verify that such description conforms to the provi-
sions of the Bond Ordinance. The legal fees to be paid Messrs. McCall, Parkhurst & Horton for services
rendered in connection with the issuance of the Bonds are contingent on the sale and delivery of the
Bonds. The legal opinion of Bond Counsel will be printed on the Bonds.
FINANCIAL CONSULTANTS
M. E. Allison & Co., Inc.. San Antonio, Texas is employed as financial consultants to the City in
connection with the issuance of the Bonds. The financial consultants fee for their services is contingent
on the sale and delivery of the Bonds.
SUCCESSFUL BIDDER
The City understands that the successful bidders intend to offer the Bonds to the public initially at
the prices or yields set forth on the cover or first page of this Official Statement. It is believed that the
Bonds may be offered to certain dealers at prices other than the public offering prices. The initial public
offering prices or yields set forth on the cover or first page may be subsequently changed.
INDEPENDENT AUDITS
The financial statements of the General Fund, General Debt Service Fund, and General Obligation
Debt group of accounts of the City included in this Official Statement have been examined by Arturo
Vasquez & Company, Corpus Christi, Texas, Independent Certified Public Accountants, to the extent
stated in their report appearing herein, and have been so included in reliance upon such report given
upon the authority of that firm as experts in accounting and auditing.
CITY'S ANNUAL FINANCIAL REPORTS
Copies of the Director of Finance annual report of the City for each of the City's last five fiscal
years are available to prospective purchasers at the office of Harold F. Zick, Director of Finance, Corpus
Christi, Texas, and may be examined at any reasonable time.
39
•
Banking
There are thirteen banks and numerous savings and loan associations located in the City. The table
below sets forth the total deposits as of December 31 for the past ten years.
Year Amount Year Amount
1968 $342,645,075 1973 $581,961.957
1969 349,692,957 1974 651,491,728
1970 471,068,207 1975 730,844,355
1971 515,568,008 1976 792,087,137
1972 552,063,027 1977 866,207,576
Transportatitin
The Port of Corpus Christi provides excellent access to the sea lanes of the world. The Corpus Christi
International Airport is served by five airlines and the City plans to purchase additional land for future
expansion. Three rail lines serve the City and provide good transit time throughout the United States
and Mexico. The City is tied into the Interstate highway network providing an open highway access to
the entire nation.
Corpus Christi State UnlvenRy Library Itullding
Educational and Hospitals
There are five separate school districts within the City limits having ten high schools, seventeen
junior high schools and fifty elementary schools.
Higher education is provided by Corpus Christi State University at Corpus Christi; a two year upper
level university which opened in September 1973 on a campus area of 200 acres. The September 1977
enrollment was 2,454. The University projects an enrollment of 5,000 by early 1980's. The Corpus Christi
junior College District operates Del Mar College and offers two year college lower level and vocational
certificate programs. The September 1977 enrollment consisted of 6,964 students for college credit
associate degrees and 1,376 full time students in vocational education.
The U. S. Geological Survey operates a research facility at the Corpus Christi State University campus
conducting geological research on the sea floor of the Gulf of Mexico and the Caribbean Sea.
The University of Texas Marine Science Institute is located in nearby Port Aransas and provides
graduate level work and research opportunities in the broad field of marine sciences.
There are ten hospitals in the City with a total of 1,605 beds and several expansion programs under-
way.
37
is
•
Model of Community -Comer len faculty
Tourist and Convention Business
The Corpus Christi Convention and Tourist Bureau reported 88,720 conventioneers spent $19.4 Mil•
lion in Corpus Christi during 1977. It is estimated tourists spent an additional $16 Million. Corpus Christi
is the only City in America where the downtown business district leads directly onto the Bayfront. The City
has recently constructed a Community Cultural Center which is part of the Bayfront. The design treats
the Park as an extension and terminus of Shoreline Drive, providing a focus toward the Bay. Located in
the uniquely designed Community Cultural Center is a new 77,821 square foot Auditorium with a
seating capacity of 2,500 persons. Also the Harbor Playhouse, a 500 seat theatre is located in the center
along with the Art Museum of South Texas, and Corpus Christi Museum. $6,000,000 of these Bonds
together with $8,000,000 of Bonds sold in May, 1977 is being used to construct a Community- Convention
Facility, including an exhibit hall, meeting rooms, banquet hall, additional auditorium improvements
and further acquisition and development of the site at the Bayfront Center. The Project design features
an exhibit hall with 75,000 net square feet of exhibit space, a 80,000 square foot assembly and banquet
hall to seat 2,000 persons for dinner or 4,000 for general meeting, 19,000 square feet for up to 14
meeting rooms, plus storage, lobby, loading dock, office, ticket area, catering-kitchen, mechanical opera.
tion, halls, restrooms and elevators. Estimated cost of the Project is $14,400,000.
Due to the new Convention Center, major hotels and motels are planning expansion programs or
plans to build in Corpus Christi. Holiday Inn Emerald Beach already has under construction a new five
story tower containing 144 guests rooms and four suits which will make a total of 964 rooms upon com-
pletion. Also, three 25 X 20 conference rooms, new 900 seat Convention Center, new banquet kitchen,
new restaurant to seat 260 and 17,00 square foot Holidome recreation fun center.
People are attracted by a desire to visit the Gulf Coast, good weather and a splendid system of high-
ways and causeways to Mustang Island and Padre Island where they can enjoy bathing and other recrea-
tional advantages offered by the Gulf. Because of the Gulf breezes winters are mild and summers are
comfortably cool with an average mean of 70 degrees. Boating and fishing accommodations are good
and Port Aransas on Mustang Island is famous for deep sea fishing. The National Seashore Recreational
Area on Padre Island has an 88 mile shoreline and excellent facilities are provided by the National Park
Service.
•
Employment
The following table indicates the total civilian employment in the Corpus Christi SMSA for the period
November 1977 as compared to the prior periods of October 1977 and November 1976.
Source: Texas Employment Commission - Manpower Trends, Corpus Christi - December 1977.
Construction.
The tables below indicate the amount of construction activity in Corpus Christi in the period of 1970
1977 and the monthly activity of 1977.
Building Permits
(annually)
No. of Permita
Prior Peri ods
1970
November
Oaober November
1971
1977
1977 1976
Civilian Labor Force
128,200
128,650 128,200
Unemployment
7,750
8,500 8,250
Percent Unemployment
6.0
6.6 6.4
Total Employment
120,450
120,150 119,950
The following table sets forth the average weekly earnings, average
weekly hours and average hourly
earnings in the Corpus Christi SMSA for the period November
1977 as compared to the prior periods of
October 1977 and November 1976.
82,754,296
March
Av. Weekly Parninss
Av. Weekly Houn Av. Hourly Earninsa
Nov. On. Nov.
Nov.
Ott. Nov. Nov, Oa. Nov.
1977 1977 1976
1977
1977 1976 1977 1977 1976
Manufacturing -Total $256.45 $254.37 $240.96
42.6
41.7 42.2 $6.02 $6.10 $5.71
Durable Goods 203.66 203.27 198.92
39.7
41.4 41.1 5.13 4.91 4.84
Non - Durable Goods 282.68 279.64 262.79
44.1
41.8 42.8 6.41 6.69 6.14
Source: Texas Employment Commission - Manpower Trends, Corpus Christi - December 1977.
Construction.
The tables below indicate the amount of construction activity in Corpus Christi in the period of 1970
1977 and the monthly activity of 1977.
Building Permits
(annually)
BUILDING PERMITS
(Monthly - 1977)
No. of Permita
Value
1970
5,641
$29,290,390
1971
8,434
75,102,342
1972
4,573
60,887,030
1973
3,364
53,790,812
1974
2,930
57,753,925
1975
2,950
51,796,975
1976
3,490
56,644,920
1977
4,028
82,754,296
BUILDING PERMITS
(Monthly - 1977)
36
Residential
Commercial
Tom]
No. of Permim
Value
No_ Permim
Value
No. of Permits
Value
January
165
$ 2,226,518
63
$ 3.389,934
228
3 5,616,452
February
228
3,785,419
72
3,633,155
300
7,418,574
March
298
3,646,640
88
2,359.345
386
6,005,985
April
251
3,481,658
70
1,028,080
321
4,509,738
May
227
6,938,489
97
2,651,633
324
9,590,122
June
274
3,930,035
81
3,253,653
355
7,183,688
July
261
4,604,940
103
1,801,397
364
6,406,337
August
346
8,519,508
110
2,185,143
456
10,704,651
September
272
4,046,846
84
1,269,784
356
5,316,630
October
282
5,652,989
100
2,310,574
382
7,963,563
November
225
3,672,323
57
1,767,289
282
5,439,612
December
200
3,385,753
74
3,213,191
274
6,598,944
3,029
$53,891,118
999
$28,863,178
4,028
$82,754,296
36
Robstown Manufacturing Company ... (Haggar Slacks Company) Haggar, one of the largest manufac-
turers of mess dress slacks began operations in Robstown during 1967. Innovative ideas with new fabrics,
colors, styles, and fashions have kept Haggar the leader in dress slacks for men. The plant has been very
successful with current employment of 600.
TRW, Inc. ...During the Fall of 1975, TRW, Inc. established a resistor manufacturing facility in
Corpus Christi. TRW resistors are manufactured for industrial, instrumentation, communication, com-
puter, lighting, and military applications. During 1977 the Corpus Christi facility became the headquart-
ers for TRW's Precision Thin Film Resistor manufacturing operations. Employment has grown to about
three hundred people.
Weatherby International ... During 1974 located a metal fabrication yard in Rincon Industrial Park.
The facility is producing generator stations, compressor stations, and packaged process plants. The com-
pany has over 250 employees.
Private Utilities
Southwestern Bell Telephone Company supplies telephone service to Corpus Christi. As of September,
1977 there were 167,883 telephones operating in Corpus Christi exchange, a net increase of 7,858 for the
year. In November, 1977 the "downtown" central office serving approximately 32,000 customers was
converted to the most modem electronic switching system. The equally large "Terminal" central office
electronic system is now under construction and all other central offices within the City are scheduled
for conversion to electronic switching in the near future.
Central Power and Light, Lon C. Hill Power Plant, and Centex.
Electricity is furnished by Central Power and Light Company (CPL) whose principal offices are
located in Corpus Christi. In addition to Corpus Christi, CPL supplies electric service to a 44,000 square
mile area which reaches into 44 counties of South Texas. Three of CPL's largest power stations are
located in Corpus Christi. CPL is participating with three other utilities in building a two -unit nuclear
plant that is scheduled to be operational in 1980. A coal fired plant is under construction near Victoria.
Texas and is scheduled to be on line in 1979.
35
• _ a
Naval Air Station and Corpus Christi Army Depot ... In the training of pilots and maintenance of air-
craft, the Navy uses more than 2,000 military and more than 1,000 civilian personnel. The Corpus
Christi Army Depot has approximately 9,900 civilian and some military personnel. CCAD is the Army's
facility for complete maintenance, overhaul and repair of Army helicopters.
In evaluating the impact of military installations to the economy of any City one should always
consider the political nature of the issue. The Department of Defense now has under consideration a sub-
stantial reduction of the Navy's activities in Corpus Christi.
Power Monolithics...ln 1974, Power Monolithics, Inc. a division of Veeco Instruments, completed
construction of an electronics plant in Corpus Christi. The building is located on city property at Inter-
national Airport. Production is semi- conductors and integrated circuits. Semi - conductors are single transis-
tors and integrated circuits are items containing many transistors. Projected employment is 950.
PPG Industries, Chemical Division...Called Southern Alkali Corporation when it was first built, the
plant, now known as PPG Industries, Chemical Division began operations in 1994 with about 250
employees. This plant has been expanded many times. The number of employees has grown to 675, in-
cluding Technical Center. Principal raw materials are brine, limestone and chrome ores. Principal
products are chlorine, soda ash, caustic soda, caustic pot ash, and chrome chemicals. The last pro-
cessing unit to be constructed was a plant to make chrome chemicals. The plant's Technical Center started
in 1945 with six people and now has approximately 141 scientists, engineers, technicians, and
clerical personnel.
On November 1, 1977 PPG Industries announced it will close 75 per cent of its local plant. The
shutdown is expected to be completed by March 91, 1978. Officials stated that when the cutback is
completed they will employ approximately 270 persons at the plant and Technical Center. The plant will
continue to produce a full line of chrome chemicals and a possible expansion of this facility is under
study. The Technical Center with a staff of 141 will have a slight reduction of personnel but will con-
tinue most of its normal operations. The annual payroll of the complex in 1976 was $10.5 million. This
would be cut back to around $2.5 million. The production phaseout is blamed on poor operating
economics.
Reynolds Metals Company... Reynolds Metals Company completed two large planes near Corpus Christi
in 1952. The Sherwin plant uses bauxite ore, transported in self- unloading, company -owned ships to
produce alumina. A part of the production of alumina goes to the neighboring Reynolds San Patricio
plant where it is used to make metallic aluminum. Four years after these plants were built, a major
expansion increased substantially the plant capacity. A second major expansion was completed in 1966.
1,200 people are employed including approximately 70 in the marine division. The San Patricio reduction
plant has closed temporarily due to current economic conditions-
94
Bay Fabricators ... Bay Fabricators is the outgrowth of a small aluminum fabricating business established
in 1948. The company's activities now include fabrication of steel, aluminum; and copper for industrial
customers, also sub- assemblies for air pollution control systems, production of copper and aluminum bus
assemblies for industrial electrical systems, and fabricated steel products. More than 100 persons are
employed by the company at Cabaniss Field.
Brown & Root, Inc ... In early 1975 Brown & Root announced the location of a marine fabrication yard
on their site at Harbor Island. Site work and bulk heads construction has been completed. The company
fabricates heavy steel structures for the offshore oil industry. There are about 950 employees.
E. L. Caldwell & Sons ... One of Corpus Christi's oldest manufacturing companies, maintains a thirteen -
acre manufacturing plant which sells a wide range of farm products all over the nation and in over 50
foreign countries. New technology to continually develop new products has been the company's key to
success, according to the owners. More than 100 persons are employed at the plant.
Celanese Chemical Company ... The Chemcel plant at Bishop, near Corpus Christi, began operating in
1945. Original production was of five basic chemicals, principally acetic acid and acetone, that were to
be used in other Celanese plants to make cellolose acetate that is used in the making of synthetic fabrics
and plastics. The Chemcel plant is a petrochemical and plastic plant using methane and derivatives of
petroleum as raw materials. In the thirty years since it began operating, there have been many plant ex-
pansions and new products added until the number now exceeds 50. The number of employees has
grown to more than 900. The Celanese Technical Center, located in Corpus Christi, has steadily expand-
ed. The original pilot plant was begun in 1947. Several additions have since been constructed. There
are now about 250 employees at the Technical Center.
Centex Cement Corporation... Centex Cement Corporation uses limestone to produce various types of
cement. Centex has about 195 employees. Company officials have announced plans to relocate the
facilities to another City, but the local plant will be used as a cement distribution center for South Texas.
It will be some two years before the new facilities are completed, and there are plans under study to con-
vert the present facility to the production of lime. Some of the present employees will be kept on to
operate the distribution center, and others may continue if the proposal to convert the plant goes through.
Recent demand for cement has caused Centex to continue producing cement in Corpus Chriti.
CPC International ... The multiplant international company is represented in Corpus Christi by the
Bluebonnet Plant, a modem wet milling plant. Construction of the Corpus Christi plant began in
1947, with production getting underway in 1949. The architecture is unique since most of the process
buildings are without walls. The plant employs approximately 950 people, producing bulk products of
starch and dextrose sugar. Vegetable oil and grain seed are by- products.
E. I. DuPont De Nemours & Company ... In 1971 E. 1. DuPont De Nemours purchased 1,560 acres of
property on Corpus Christi bay, located between the Reynolds Metals plant and the City of Ingleside. The
plant is an integrated facility for the production of fluorcarbons. Fluorcarbon products are used as
aerosol propellants, refrigerants, solvents, food refrigerants, fire extinguishing agents, and flowing agents
for plastic foams. The company is planning to operate a unique and new process which converts a
by- product, hydrogen chloride, to chlorine which will then be used as raw material for the manufacture of
freon. Because of the new process developed by DuPont, the plant is expected to be expanded into one of
the world's major freon facilities. The first phase of the plant began operations in early 1974 and
employs approximately 550 people. DuPont has started construction on a caustic - chlorine plant.
Levi Strauss & Company...Levi Strauss and Company is the world's largest apparel manufacturer. The
Corpus Christi plant manufactures women's pants. They will move into a new 100,000 sq. ft. facility early
in 1978. Employment will increase from the present level of 225 to approximately 700.
33
Saber Refining Company ... In 1975. started production on their 60 acre tract on Up River Road with a
crude capacity of 10,500 bbls per day. Primary products are naphtha, No. 2 Fuel Oil, atmospheric gas
oil, and residium. Presently completing expansion of the refinery which will increase crude capacity to
21,000 bbl /day and provide for production of L.P.G. as an additional product. Employment has been
increased to 37 people.
Sun Petroleum Company ... (subsidiary of
Sun Oil Company) is one of the newest and
most highly automated in the nation. Its
construction was completed in 1953 with
original capacity of 26,000 barrels a day.
Since then, many new production units have
been added. Daily through -put has been
increased gradually until now it is 70,000
barrels a day. In addition to refined petro-
leum products, the plant annually produces
100 million pounds of Paraxylene which is
used in making synthetic fifers. There are
465 employees,
Quintana- Howell Refinery ... The Quin-
tana- Howell Joint Venture refinery, a joint Sun Petroloum Company Refinery
venture of Quintana Refinery Company and
Howell Corporation, was re- opened in the Spring of 1979 after being closed in the Fall of 1970. Shortly
after the refinery resumed operations, the Quintana - Howell Joint Venture began a construction program
which increased the capacity of the refinery to 47,500 barrels, per day. The refinery is currently pro.
cessing about 30,000 barrels of oil per day producing fuel oils which are marketed to utilities and
industrial users in Texas and the Northeast, and naphtha, which is sold to chemical companies. In
1975, the Quintana - Howell joint Venture began construction of a petrochemical plant at the refinery site.
The plant will produce aromatic petrochemicals, primarily benzene, xylene and toluene. When com-
pleted, the facility will have a 7,200 barrel per day processing capacity, including 5,000 barrels per day
of benzene, making it one of the ten largest producers of benzene in the U. S.
Tipperary Corporation...Tipperary Corpo-
ration, based in Midland, Texas is now
building an oil refinery near Ingleside. The
site is 75 acres acquired from National Steel
Company, The new refinery is on stream
with a capacity for 5.000 barrels of crude
throughput daily and will be operated by
about 21 persons.
A 1J�JJJ - The oil and gas industry is a major support
to the economy of Corpus Christi. In addi-
� [ion to the major refineries listed above,
there are about 56 oil field equipment and
specialty companies, 106 oil field specialty
_ companies not in the above categories,
123 oil- operator companies and 75 produc-
Producers Grain - Pon Terminal. ers not included in "Operator- Companies."
There are approximately 75 oil drilling companies, including major marine offshore rig operators with
many specialists not included in above, such as seals, bearings, directional drill control. mud engineers.
fishing tools, libraries, logging, mapping, perforating and surveying.
31
•
Other selected major industries dependent upon the Port of Corpus Christi facilities and those
located throughout the Corpus Christi area are:
ASARCO Incorporated ... Brings concentrated zinc ores in ocean -going ships from mines in various foreign
countries and from western states. Planned originally to produce 9,500 tons of zinc per month, the plant
had three major expansions of production capacity in 1959, 1956 and 1960 and now produces more than
100,000 tons of zinc metal per year and 80,000 tons of sulphuric acid. Smaller quantities are produced
of other metals that are found in the zinc ores. The number of employees has increased with each plant
enlargement and now numbers about 650.
_
ASARCO, Im., Cam Products and Producers Grain
Baker Marine Corporation... Is a family -owned marine offshore rig building firm that in 1974 bought out
IHC Holland Marine Corporation, a Dutch firm located on a site near Ingleside leased from National
Steel Corporation and completed a $25 million offshore drilling jack -up platform rig destined for Brazil.
Baker's second giant drilling structure was delivered to Transworld Drilling Co., a wholly owned sub.
sidiary or Kerr McGee Corporation. A third rig has been completed for Pool Co., a subsidiary of Enserch
Corporation. Current employment is approximately 650. Baker has these three offshore jack -up drilling
rigs now under construction: one mat - supported rig for Marine Drilling Co., of Corpus Chrssti, one mat -
supported rig for Moran Bros., of Wichita Falls, Texas and one spudcan supported rig for Houston
Offshore International. Baker has four production facilities in the Corpus Christi area: a jack manu-
facturing facility at Cuddihy Field; a steel fabrication facility at Rincon Industrial Canal; a machine
shop at Ingleside and its main rig building facility 6 miles southeast of Ingleside. Baker also fabricates
packaged offshore drilling rigs.
32
Application has been made to the Corps of Engineers for a permit to develop a 72 foot deep channel
and docking basin at Harbor Island, one of the divisions of the Port, to accomodate VLCC's of 275,000
DWT capacity. This facility would provide substantial economies in supplying crude oil to industries and
refineries as well as large dry bulk cargo ships and the Federal Energy Commission has been quoted as
considering it a national energy facility. As the nation's energy shortage worsens and crude imports
increase, almost every refinery on the Port of Corpus Christi has been and now is, expanding efforts to
meet these demands. The plants currently have an aggregate daily throughput capacity of 588,500 bar-
rels of crude oil. Construction now underway or soon to start will increase this to 655,000 barrels. Fol-
lowing is a highly condensed description and record of the growth and plans of refineries at the Port of
Corpus Christi.
Coastal States Petrochemical Company... Beginning as an independently owned and small refinery in
1956, it is now the largest refinery in Corpus Christi and the 17th largest in the nation. Terminal Re-
fining Company was sold in 1942 to Sinclair Oil and Refining Company and developed into a capacity of
29,500 barrels of crude per day. Since being purchased by Coastal States Petrochemical Company, addi-
tional producing units have been completed and expanded. The refinery now has a capacity of 185,000
barrels of crude per day and employs 400 personnel. In 1975, the company built eight new tanks and
now has storage capacity for five million barrels. Its products range from gasoline to asphalt and coke.
Production also includes jet fuel, kerosene, diesel fuels and bunker oil for ships, No. 2 and No. 6 oils.
benzene, cumene, and toluene.
Southwestern Refining Company, Inc... Was constructed and began operations in 1986 with the capacity
to process 5,500 barrels of crude oil per day. Gradually that capacity has been increased until now
through -put capacity is 120,000 barrels a day. An expansion program now nearing completion will add
another 55,000 barrels to the plant's capacity. There were 25 or 30 employees at the beginning in
1986. Now there are about 240. In addition to normal petroleum products, others are Aromatics -
Benzine, Toluene and Xylene. Kerr -McGee Corporation acquired Southwestern Refining Company in
February 1974 and announced a $32 million expansion which will allow for the processing of imported
sour crude oils. The new desulfurigation equipment which is designed for desulfuring of naphtha,
kerosene, diesel fuel and gas oils became operational in 1975.
Champlin Petroleum Corporation... Champlin Petroleum Corporation began business in 1936 with 24
employees and a capacity to process 2,000 barrels of crude oil per day. The Great Southern Chemical
Corporation, a petrochemical producer, was purchased and incorporated into the plant. Production
gradually has grown until more than 400 employees are required as 155,000 barrels of crude per day are
converted into automotive products and petrochemicals. Recently its capacity was increased to 155,000
barrels a day under an expansion program costing $250 million. The new expansion provided the
necessary equipment for processing both low and high sulphur crude and to meet current and expected
environmental standards. The project included expansion of the company's terminal facilities on the
Corpus Christi Ship Channel to receive crude from both domestic and foreign sources. This included
building two docks and adding three million barrels of storage capacity to 7.5 million barrels.
Champlin Petroleum Corporation announced in June, 1977 its participation in a joint venture to
build a $600 million, world scale ethylene plant about 10 miles southwest of Champlin's present port
industrial district refinery. Champlin's interest will be 37.5 percent with ICI America and ICI United
States taking 37.5 percent and Soltex Polymer Corporation 25 percent interest. The plant, was started
in 1977 and projected to be finished in 1980, is expected to employ a construction force in excess of
2,000 workers. When finished, it should require about 200 operational employees. The petrochemical
complex will produce 1.2 billion pounds of ethylene a year, plus substantial quantities of propylene, ben-
zene and crude butadiene. The products are basic to the manufacture of plastics, synthetic rubber,
synthetic fibers, antifreeze and detergents. Champlin will operate the new complex, supplying liquid
feedstocks (naphtha and gas -oil) from its Corpus Christi refinery. ICI will be marketing contractor, and
Soltex will he pipeline contractor.
30
Indw y
Corpus Christi industry is diversified. Products include metal, chemicals, farm and ranch equip-
ment, oil field equipment, cement, clothing, food processing, electronic and petrochemicals.
Aerial vlew d Port of Corpus Chrisfl and Harper Bridge.
The Port of Corpus Christi opened the area to world commerce in 1926. It is the terminus of a net-
work of oil and gas pipelines covering Southwest Texas and extending to the Oil country of West Texas.
In 1976, 1,195 ships and 5,515 barges used the Port's facilities. There are a total of 6,816 lineal feet of
wharf frontage consisting of 24 public docks of which 11 are dry cargo, one bulk material two grain
elevators and 11 oil docks. In addition, there are 12 private oil docks and 7 dry cargo docks owned and
operated by major industries. There is also a public compress with an average capacity to handle
2,500 bales of cotton per eight -hour day.
Petroleum, a principal commodity moving through the Port has had dramatic increase in volume in
the last five years. Shipments of crude and refined products in the first six months of 1977 increased
42.5% over the same period in 1976. Other principal commodities handled are grain, chemicals
(liquid and dry), cotton and linters, metals and ores, mud shell and caliche and general cargo. Total
cargo volume in 1977 was 60,669,825 tons as compared to 48,295,799 tons in 1976.
Dredging to deepen the Port channel from 40 to 45 feet, making it the deepest Port on the Gulf of
Mexico started July 12, 1975. Dredging has been delayed for years because the United States Corps of
Engineers, the Port, nearby property owners and environmental groups have been unable to agree on
disposal sites for the contaminated sediments in the inner harbor. While negotiations have dragged on,
shoaling has continued. In December, 1977, this situation resulted in an 18 inch reduction in draft size of
ships. The reduction could adversely affect petrochemical operations which will need more ships at
higher operating costs for the same shipment of crude oil into the Port and refined products out of the
Port. The Port and Corps are working on an interim dredge disposal plan that should have the 18 inch
reduction order removed in the near future.
29
ECONOMIC AND DEMOGRAPHIC CHARACTERIS'T'ICS
population
In 1960 the City of Corpus Christi had a population of 167,690. By 1970 the population had in-
creased approximately 22% to 204,525. The table below shows the City's U. S. Census figure for 1920 -
1970 and the 1977 estimate by City officials:
Population
U. S. Census Figures for 1920 -1970
1920
10,522
1930
27,741
1940
57,301
1950
108,053
1960
167,690
1970
204,525
1977 (estimated)
225,000
According to 1970 Census figures, median age in Corpus Christi is 24.4 years. These figures also
indicate that approximately 42.5% were under 20 years of age, 32.8% between 20 and 44, 18.6% between
45 and 65, and approximately 6.1 % were 65 or older.
Corpus Christi Standard Metropolitan Statistical Area (SMSA) consists of Nueces and San Patricia,
Counties with an estimated population of 298,436 in 1976.
View of the Marina an the Bayhent.
Trade Area and Location
Corpus Chriti s Trade Area consists of Nueces, San Patricio, Aransas, Jim Wells and Kleberg Coun-
ties. All of these counties enjoy a solid and diversified economy contributing material support to Corpus
Christi as a trade center and shipping point. The area is generally flat with rich soils, excellent climate
and a growing season of approximately 300 days. Principal crops are grain sorghums and cotton. Live-
stock includes beef, dairy cattle, hogs and poultry, average agricultural income is about $120 Million
The oil and gas industry has been a major factor in the growth and economy of the trade area. Annual
mineral value is about $725 Million.
The Trade Area's outlet for much of its agricultural and petroleum products and one of the most
important economic factors is the Port of Corpus Christi which has been serving the area for fifty years.
Corpus Christi's location is one of the most strategic in the Southwest with deep water transportation
to the Gulf of Mexico and barge traffic by the Intracoastal Waterway. The nearest competition to the
Port is Brownsville, 160 miles to the South, nearest retail and wholesale competition is San Antonio,
145 miles to the Northwest and nearest heavy industry competition is Houston 210 miles to the Northeast.
28
Future annexations by the City are expected. However, as more fully described below, future
annexations may be affected by the Voting Rights Act of 1965, as amended.
LEGISLATION AND LITIGATION
Federal Bankruptcy Act
In April 1976, certain amendments to the Federal Bankruptcy Act were enacted. These amendments
eliminated the requirement that the consent of a majority of the creditors of an insolvent municipality
be obtained before a petition for bankruptcy was filed and otherwise attenuated the requirements that
must be sated before a municipality seeks assistance in adjusting its debts. Although the amendments
were enacted primarily in response to the financial difficulties of New York City, the passage of the
amendments may increase the likelihood that financially distressed municipalities will seek court
assistance in dealing with the claims of the municipality's creditors. Such action by one or more munici.
palities may have an adverse effect on the municipal bond market generally.
Voting Rights Act of 1963, as amended
On September 25, 1975, the State of Texas became subject to the provisions of the Voting Rights
Act of 1965, as amended by the Voting Rights Act Amendments of 1975, Public Law 9473 (the "Voting
Rights Act "). Among other requirements, the Voting Rights Act purports to prohibit the enforcement
by a, political subdivision, such as the City, of any change in voting practices or procedures different
from those in effect on November 1, 1972, without first obtaining a declaratory judgment in the United
States - District Court of Columbia to the effect that the enforcement of such practices or procedures
will not have the purpose or effect of discriminating against racial or language minority group voters.
In the alternative, the proposed changes in practices or procedures may be submitted to the United
States Department of justice. If no objection thereto is received within sixty days with respect to the
enforcement of such proposed changes in practices or procedures, or if a written determination from the
Department of Justice not to interpose objection to the enforcement of such proposed changes in practices
or procedures is obtained, such changes may thereafter be enforced unless enjoined or restrained by
subsequent action brought by an aggrieved party. Among other matters, any adjustment since
November 1, 1972 in the boundaries of the jurisdiction proposing to hold an election would constitute
a change in voting practices or procedures and is subject to the terms of the Voting Rights Act.
Coastal States Gas Producing Co.
On March 20, 1975 the City of Corpus Christi filed a damage suit against Coastal States Gas
Producing Co. in the stated amount of Six Million Dollars (Cause No. 75 -988E, City of Corpus
Christi, et al vs. Coastal States Gas Producing Co., et al). These damages were for failing to deliver natu-
ral gas at the price contracted for. All deliveries have been made but the price of gas pursuant to the
Texas Railroad Commission's Interim Order in Gas Utilities Docket 500 has been increased monthly
based on the adjusted cost of purchased gas to the Defendants. As of the date of this report, this case is
currently pending without a trial setting due to discussion of out of court settlements. On December
12, 1977, the Texas Railroad Commission entered its Final Order in Gas Utilities Docket 500 ordering
Coastal and its subsidiary Lo -Vacs to refund all amounts paid in excess of the contract to their customers.
The Final Order does not become effective until Motions for Rehearing are acted on or overruled by
operation of law. That time could be extended until March 19, 1978, after which time it would be
subject to being appealed to State District Court. Most of the damages incurred were borne by the
City's gas utility system customers and any recovery from litigation, settlement, or the Texas Railroad
Commission Order will be for the end use customers benefit.
27
•
ANNEXATION PROGRAM
Background
The City has continued to expand its jurisdiction, and thus increase its tax base, by annexing selected
adjacent areas. The total area of the City is approximately 926 square miles of which approximately
105 square miles is land area and 221 square miles water area. As mentioned earlier, the areas covered
by water contain no population and require no normal City services, but do produce considerable
revenues from oil and gas properties located therein and allows the City to enforce ordinances regarding
uses in the areas. The City has had numerous annexations since its beginning. Significant annexations
occurred in 1950 when 96 square miles of water area in Corpus Christi and Nueces Bay were annexed, in
1962 when 45 square miles of land west and south of the City were annexed, in 1966 when 98 square miles
of water area in Corpus Christi Bay were taken in and in 1970 when 66 square miles of water area in
Corpus Christi Bay and Laguna Madre were added. However, four oil companies who owned leases in
the 1970 annexation of bay water areas contended the annexation was not legal. The matter ended up in
court and the matter was settled in favor of the City. In December 1972 an election to re -affirm the
annexation of November 1970 was held and carried. The following table lists the areas annexed by the
City since 1970.
Annexations 1970 -1977 Square Miles ,
Date of Ameaatim Description of Areas land Water
November 1970 State owned submerged areas 5 miles
up the Nueces River
—
0.05
November
1970
State owned submerged areas in
Corpus Christi Bay & Laguna Madre
—
66.15
January
1972
Streets and roads around Saratoga Land Co.
0.12
—
March
1972
Saratoga Land Co. area
0.69
—
May
1972
Central Power & Light Co. property
on Saratoga Blvd.
0.09
—
June
1972
South Clarkwood Rd. - land south of Clarkwood
0.02
--
July
1972
State owned submerged area 7 2/5 miles
up Nueces River
—
0.07
July
1972
Area of Bohemian Colony Lands
0.05
—
December
1972
Re- affirm annexation of November 1970 and
9 additional areas
0.29
4.08
April
1979
Jim Wilburn property and a portion of Saratoga Rd.
0.01
—
August
1979
Cabanis Industry area
0.02
—
August
1979
Calallen area
0.12
—
January
1974
Calallen area
0.09
—
March
1974
Flyway subdivision unit #1
0.06
—
October
1974
Corpus Christi beach area
0.04
—
December
1974
Portions of Saratoga Blvd. & Staples
0.19
—
December
1974
Barney M. Davis Plant Area
9.12
—
November
1975
Flyway subdivision unit #2
0.06
—
January
1977
Annaville area
0.05
—
March
1977
Area of Bohemian Colony Lands
0.26
—
October
1977
Area of Delta Acres Subdivision
0.009
—
October
1977
Area of Ira Hayley, Jr. Land
0.07
—
November
1977
Area of H. B. Sheppard Farm Lots
0.01
—
November
1977
Portion of Suntide (Viola Rd.) 1 -185
0.002
—
November
1977
Portion of McRinzie Ln.
0.005
—
26
COMPARATIVE UTILITY SYSTEMS OPERATING STATEMENT
Fiwsl Ymr Ending
Water System 7 -31 -77 7 -31 -76 7 -31 -75 7 -31 -74 7 -31 -73
Income $8,228,948 $7,687,198 $7,507,540 $6,999,441 $6,114,425
Expenses 4,599,268 4,084,999 9,920,107 9,724,217 9,596,996
Net Revenue Available
For Debt Service $9,695,080 $9,602,199 $9,587,459 $2,615,224 t2,577,489
Wastewater Disposal System
Income $2,297,145 $2,294,102 $2,190,580 $1,846,728 $1,744,411
Expenses 2,906,457 2,049,414 1,746,606 1,476,492 1,921,411
Net Revenue Available
For Debt Service L___12..3 12) $ 190,688 $ 499,974 L_370,236 $ 429,000
Gas System
Income $18,962,567 $15,122,909 $7,875,920 $4,042,987 $9,811,247
Expenses 16,779,874 19,081,089 6,500,821 9,428,769 2,446,595
Net Revenue Available for
Other Lawful Purposes $ 2,182,499 $ 2,041,814 $1,975,098 $ 614,218 $1,964,652
The Gas System Has No
Revenue Bonds Outstanding
Note: Accounting principles customarily employed in the determination of net revenues for coverage of
debt service have been observed and in all instances exclude depreciation. Figures for fiscal years
ending 7- 91 -77, 7- 91.76, 7 -91 -75 and 7.91.74 from audit prepared by Arturo Vasquez, CPA, Cor-
pus Christi; fiscal year ending 7 -91 -79 from audit prepared by Touche, Ross & Co., CPA, Corpus
Christi.
UTILITY CONNECTIONS
(At December 91)
Ymr Water Sewer Gas Electric Telephone
1971 57,127 48,041 56,912 65,071 194,099
1972 58,458 49,195 57,079 66,765 199,160
1979 59,918 50,071 57,429 68,668 144,291
1974 59,926 50,642 57,617 69,666 146,719
1975 60,192 51,968 57,815 70,740 152,120
1976 60,575 52,698 57,669 71,715 160,888
1977 (1) 61,956 59,589 57,951 79,924 167,578
(1) As of November 90, 1977
INTERNATIONAL AIRPORT
Corpus Christi International Airport has 1,790 acres with two fully instrumental main runways of
7,500 feet and 6,080 feet. Enplaning and deplaning passengers totaled 479,128 for the fiscal year ended
July 91, 1977, an increase of 80,621 over the previous fiscal year. There are 90 scheduled airline arrivals
and departures daily. During the fiscal year ended July 91, 1977, the City incurred a net loss of $86,688
on operation of the airport, which was down $99,991 from the loss of the previous fiscal year. Increases in
landing fees and fuel flowage fees in 1977 improved revenues but did not eliminate the deficit in
operations.
TRANSIT SYSTEM
The City Transit System operates 27 buses daily over 17 routes. Passengers carried for the fiscal
year ended July Sl, 1977 totaled 1,619,555. The Transit System's net loss for the fiscal year ended July
91, 1977 was $805,090, an increase of $176,041 over the net loss of the previous fiscal year.
25
time to time to complete the initial local share of the Project. Debt service on the Nueces River Authority
Revenue Bonds will be paid by the City from revenues from the sale of water. Upon completion of the
Project, the City will commence paying the balance of the local share which is scheduled over a 40 year
period with payments based upon water consumption.
The water rates charged by the City for treated water vary in accordance with the amount of water
delivered and meter size. Inside city limits rates are a minimum of $1.90 to $56.70 based on meter line
size from 8/8" to 8" for the first 8,000 gallons. The rate per thousand gallon decreases in six steps for
quantities delivered in excess of the minimum. Outside city limits customers rates are $4.10 to $118.40
and $6.80 to $170.10 (Padre Island customers) depending on the meter line size from 8/8" to 8" for the
first 8,000 gallons. The rate per thousand gallons decreases in six steps for quantities delivered in excess of
the minimum. The City has also contracted to sell treated and raw water to several industrial and
municipal customers. The rates charged to the contract customers vary. On Janury 11, 1978 the City
Council passed on first reading an Ordinance adopting new water rates which will increase the above
rates approximately 80 %. The Ordinance is expected to become finally approved on January 25, 1978.
Operations of the Waterworks System may be found under the caption "Comparative Utility Systems
Operating Statements" and number of customers under the caption "Utility Connections".
WASTEWATER DISPOSAL SYSTEM
The City's Wastewater Disposal System is operated by the Wastewater Division of the Depart-
ment of Public Utilities. The System consists of approximately 909 miles of sanitary sewer mains
and treatment plants. Sanitary sewer service charges are based on water consumption. In August, 1977,
the Wastewater Rate Ordinance was amended to increase Wastewater rates. Inside City limits rates are
based on a minimum of $2.55 for the first 2,000 gallons with a one - family maximum of $6.97. The charge
in addition to the minimum is $•84 for each one thousand gallons of water. Outside City limits rates are
based on a minimum of $5.10 for the first 2,000 gallons with a one- family maximum of $19.94. The
charge in addition to the minimum is $.68 for each one thousand gallons of water.
Operations of the wastewater disposal system may be found under the caption "Comparative Utility
Systems Operating Statements" and number of customers under the caption "Utilities Connections".
GAS SYSTEM
The City has been in the natural gas business since 1922 and at July 81. 1977 had 57,804 connections.
In January, 1974 the City retired the last outstanding Gas Revenue Bonds and the system is un m
encu-
bered. The Corpus Christi Municipal Gas Corporation, a non -profit corporation, was chartered for the
exclusive purpose of promoting the public interest in the City of Corpus Christi by constructing, acquiring,
owning, leasing and operating municipal gas utility facilities on behalf of and for the benefit of the City.
In July 1975, the City issued $2,000,000 Tax Certificates of Obligation with the proceeds used to pay off
the long term indebtedness and current liabilities of the Gas Corporation. The Corporation's assets are
now the property of the City and the system was merged with the City's gas system on August 1, 1975.
The City's gas supply contracts are with LoVaca Gathering Company and expire March 1, 1986. One
contract provides a rate of 19.5 cents per MCF, another contract provides a rate of 24.5 cents per MCF.
However, in September 1979, the Texas Railroad Commission issued an interlocutory order creating an
interim rate and increasing the cost of gas to 24.55 cents per MCF. This cost is adjusted monthly to reflect
the supplier's monthly weighted average cost of gas. In addition, a fixed charge of 5 cents per MCF is
assessed in order to defray maintenance and other overhead costs to be incurred by the supplier. See
"Legislation and Litigation" concerning this contract.
The gas rate charged to residential customers is a minimum of $2.85 for the first MCF reducing in
four steps for quantities delivered in excess of the minimum. General customer rates are the same but
the rates are reduced in 10 steps for quantities delivered in excess of the minimum.
Operations of the Gas System may be found under the caption "Comparative Utility Systems
Operating Statements" and number of customers under the caption "Utility Connections".
24
Accrued Vacation and Sick Leave
Vacation days accrue at the rate of I day per month of service or 1.4 days per month of service after
15 years of service; sick leave days accrue at the rate of 1 day per month of service. Policemen and firemen
accrue 15 vacation days and 15 sick leave days per year of service.
At July 31, 1977 employees accrued vacation days were valued at $1,884,965 and sick leave days were
valued at $4,917,578. These amounts are not an exact liability of the City since not all of the accrued
vacation or sick leave days would be paid to an employee upon termination of employment.
A maximum of 30 accrued vacation days are paid upon termination except that all accrued
vacation days are paid upon retirement with 25 years of service, retirement at age 65 years or upon
disability retirement. A maximum of 90 accrued sick leave days is paid only at retirement after 25 years
of service, retirement at age 65 years or older, disability retirement or death.
Contingent Liabilities
As of July 31, 1977 the City of Corpus Christi, Texas had no material contingent liabilities.
WATERWORKS SYSTEM
The City of Corpus Christi obtains its water from the Nueces River with a water -shed of some
16,000 square miles with an average flow of 612,900 acre feet. A portion of the flood waters is impounded
in Lake Corpus Christi by the Wesley Seale Dam, owned by the Lower Nueces River Water Supply Dis-
trict, which has a capacity of 272,000 acre-feet. The reservoir is maintained at a level of 94 feet above sea
level and has an estimated annual yield of 126,000 acre feet under drought conditions. The current use is
approximately 84,000 acre feet. The water flows some 35 miles of natural river channel of the Nueces
River to two treatment plants at Calallen which have a combined rated capacity of 80,000,000 gallons per
day with a 50% overload factor. The finished water is pumped to customers through five mains which
have a capacity of 130,000,000 gallons per day. Plans call for a treatment plant expansion to be con-
structed in 1979 and 1980.
A water supply contract, dated August 10, 1955, with the Lower Nueces River Water Supply District,
provides that the City has sole right to all water available from the District's reservoir. A minimum
monthly payment of $40,000 for water purchases is agreed upon, and an additional declining scale of
prices ranging from 3.25 cents to 1.50 centers per 1,000 gallons for annual water purchases in excess of
the minimum of fourteen billion gallons. The City also agrees to operate and maintain the District's dam
at its own expense during the term of this contract which is for a period of 30 years. It further agrees to
negotiate an additional contract upon expiration of the 30 -year primary-term should the District remain
obligated on bonds sold to finance construction of the dam. The agreement further provides that, at the
time all bonds of the District have been paid off, whether prior to the expiration of the primary-term or
during the period covered by a contract executed after expiration of the primary-term, the City shall
have the option of taking title to the reservoir properties from the District under such procedure and for
such minimum payment as may be required by law. As of July 31, 1977, the District had outstanding
bonds payable totaling $8,852,000 which mature serially thru 1986.
Also, the City has agreed to pay to the District a total of $180,000 during the 1977 -78 fiscal year
as a payment for the purposes of enabling the District to meet its operating expense and debt service obli-
gations and thus expedite the transfer of title of the reservoir to the City of Corpus Christi. These pay.
ments do not affect the 1955 contract.
To meet the need for a future raw water supply, the City and Nueces River Authority have entered
into a contract for joint sponsorship of Choke Canyon Project, a 700,000 acre foot reservoir to be located
on the Frio River near Three Rivers, Texas, upstream from the existing Wesley Seale Dam. The Project
will be constructed by the U. S. Bureau of Reclamation at a presently estimated cost of $82,000,000 of
which approximately 75% will be the local sponsors' share. To finance initial costs of approximately
$19,000,000 the City has sold to the Texas Water Development Board $15,000,OOC flunior Lien Water
Revenue Bonds. The first installment of $7,895,000 were issued in October 1975, of which the proceeds
were used to advance refund all $7,105,000 outstanding First Lien Water Revenue Bonds. The second
installment of $7,105,000 were issued in January 1977 and the proceeds will be paid to the Bureau of Re-
clamation as part of the cost of the Project. The Nueces River Authority will issue its revenue bonds from
23
EXPENDITURES FOR SELECTED FUNCTIONS
Set forth below is a table showing the expenditures by the City of Corpus Christi for certain selected
functions.
Comparison of General Expenditures
for Selected Functions
Sanitation Health
Fiscal General Public and Waste end Cornmunity Debt
Year Government Safety Streets Removal Environment Libraries Enrichment Service
1972.73 $2,692,635 $7,774.672 $2.145,121 $2.202,432 3 742,687 $451.040 $2933,921 $5,573,343
1973.74 3,180,949 8,649,684 2,290,887 1,986,630 893,447 500,538 2,517,546 6,175,390
1974.75 3,608.412 9.734,341 2,830,841 2,221,714 1,105,476 594,872 3,235,931 6,517,215
1975 -76 4,312.909 11,258.465 3,014,864 2,418.021 1,107,234 677.640 3.590,211 7.422,800
1976 -77 4,630,849 12,433,629 3,175.298 2,654,618 1,163,638 710,431 3,952,061 7.612,392
Community Enrichment includes expenditures for the Director, parka, recreation, marina, bayfront, science park. Corpus Christi
museum, art museum maintenance and Tourist and Convention development.
Source: Annual Financial Report for the year ending July 31, 1977.
Retirement Plans
Liabilities of Retirment Plans
Texas Municipal Retirement System... This State administered retirement system covers all employees
except firemen, temporary employees and employees who were over age 49 at the time of their employ-
ment. At July 31. 1977 2,208 employees were covered by TMRS. The present value of future contributions
for prior service is $14,215,131 which is being amortized for 25 years and is included in the City's contribu-
tion rate.
Firemen's Relief and Retirement Fund... The Firemen's Relief and Retirement Fund is established
and controlled through State legislative enactments and is maintained on an actuarily sound basis in
that contribution rates must be sufficient to pay normal cost and amortize the net actuarial deficiency
over a 30 year period. All changes or modifications of benefits must first be approved by a qualified
actuary. This retirement fund is administered locally by a seven member Board of Trustees.
The January 1, 1977 Actuarial Valuation of the Fund by The Wyatt Company, Actuaries and Con-
sultants, Dallas, Texas, reported that the present benefit plan was financially sound. They further re-
ported that if the Firemen increased their contribution by one percent they could then increase their
monthly benefits to 1.8% or $1,037.95 for each year of credited service. This improved benefits plan
would also be financially sound. The firemen voted to increase the benefits plan and also to increase their
contribution by one percent effective March 22, 1977. The January 1, 1977 Actuarial Valuation of the
funds reported an actuarial deficiency of $3,956,189 which is being amortized over a 30 year period.
Corpus Christi Retirement Plan Fund... The Corpus Christi Retirement Plan Fund was established
May 5, 1976 to provide a retirement plan for those full time employees who were over the age of 49 at
the Lime they were employed by the City and because of age were not eligible for membership in the
Texas Municipal Retirement System. There is no liability for prior service contributions to the City under
existing provisions of the Plan.
Payroll Statistics
Texas Firemen's Corpus Chriati Total Paid Number of
Fi—I social Municipal Ret Relief and Retirement by City as Employes Last
Year Salaries Security System Retirement Plan Employer Payday of Year
1972 -73 $18,095,918 $ 788,466 $ 627,133 $200,817 — $19,712,334 2,895
1973 -74 20,331,980 917,410 838,852 261,485 — 22,349,727 2,809
1974 -75 23,570,968 1,127,190 1,006,481 291,209 — 25.995,848 3,145
1975 -76 26,755,844 1,283,095 1,335,604 367,746 $5,770 29,748,059 3,048
1976 -77 28,950,266 1,381,748 1,605,029 407,908 49,298 32,394.249 3,125
Source: Annual Financial Report for the year ended July 31, 1977.
22
Hotel Occupancy Tax
A 2% hotel -motel occupancy tax was first levied in August 1968. Effective September 1, 1972 the tax
was increased from 2% to 9 %. Tax collections amounted to $967,888 in 1976 -77 fiscal year. By contract
with the City, the Corpus Christi area Convention and Tourist Bureau is reimbursed for certain expen-
ditures incured in the promotion of conventions and tourism. Reimbursements financed by the S% tax is
limited to the amount appropriated in the city annual budget.
Federal Revenue Sharing
The Federal Revenue Sharing Program began in December 1972 and as of July 91, 1977, $19,401,509
had been received and with the $456,455 accumulated interest earnings, totaled $19,875,816. Expendi-
tures through July 31, 1977 was $19,690,672.
Salmi and Use Tax
The City imposes a 1% sales and use tax. In 1977, the sales and use tax amounted to $6,852,194 and
accounted for approximately 19.4% of the City's General Fund revenues.
The sales tax applies to receipts from retail sales within the City of most tangible property and
from utility service billings, restaurant meal charges and other specified sources. The use tax is imposed on
the storage, use or consumption in the City of tangible personal property bought (or leased) from a re-
tailer. The sales and use taxes are collected by the retailer from the consumer or purchaser and are
remitted by the retailer to the Comptroller of Public Accounts of the State of Texas. The State then remits
the City's portion of the collected amount to the City monthly.
21
"Article VII, Sec. 8. Delinquent tax suits. (a) All taxes due by property owners, as appear upon
the tax rolls of the city, may be collected by suit from delinquent and foreclosure of the lien thereon
may be had in any court having jurisdiction of the same, and any person who shall have purchased
property encumbered with a lien for taxes or upon which taxes are due shall be deemed as to such taxes
a delinquent taypayer who cannot interpose any defense except such as his vendor might have made but
no personal judgment shall be rendered therefore against any subsequent purchaser. It shall be the
duty of the city attorney to cause suit to be filed and prosecuted to judgment for the collection of all
delinquent taxes exceeding twenty -five dollars ($25.00) within one year after they shall become delin-
quent. The city council may authorize the prosecution of suit against delinquent taxpayers owing less than
twenty-five dollars ($25.00).
(b) Such suits shall be prosecuted in the manner provided by the general laws of Texas relative
thereto and foreclosure and execution had• and redemption made in the manner prescribed and per -
mitred by such laws applicable to municipal corporations."
"Article VII, Sec. 9. Extensions and remissions. in no case shall any officer of the city remit, discount
or compromise any tax legally due to the city, except by the city council on motion duly passed upon ad.
vice in writing of the city attorney, authorizing same. The city council may be general ordinance appli-
cable to all taxpayers extend the time when taxes shall become delinquent and provide for the remission of
penalty and interest upon payment of delinquent taxes. The city council shall make provisions to bid in
property at tax sales for taxes due it when there are no bidders offering more than the delinquent taxes•
penalty, interest and costs. The council shall also require the city attorney to intervene in all suits filed for
taxes upon property within the city in all instances when taxes are due the city thereon."
Principal Ad Valorem, Taxpayers
The following table lists the taxpayers with the twenty largest assessed valuations as of January 1, 1977.
Name of Taxpayer
Central Power & Light Co.
Southwestern Bell Telephone Co.
Exxon Corporation & Pipe Line
Corpus Christi National Bank
H. E. Butt Co.
Corpus Christi Bank & Trust
Atlantic Richfield & Arco Pipe Line
Southwestern Refining Company
Padre Staples Mall
Citizens State Bank
Willard H. Hammonds
Cities Service Oil Company
Celanese Corp.
Wilson Building & Sam E. Wilson Estate
Parkdale Plaza, Dollar Land Co.
Sears Roebuck & Co.
Guaranty Bank Plaza
Sun Oil & Related Companies
International Business Machines
Texas & Arco Ltd,
Source: Annual Financial Report for year ending July 31, 1977.
20
1977 Assessed
Nature of Property
V.1—
Electric Utility
$78,393,567
Telephone Utility
44,875,147
Oil, Gas, Pipelines & Plant
22,185,437
Bank
12,660,931
Grocery Supermarkets
9,960,356
Batik
7, 864,912
Oil, Gas & Pipelines
7,769,850
Oil Storage
6,234,043
Shopping Center
6,003,670
Bank
4,121,729
Commercial Property
3,847,843
Oil, Gas & Pipelines
3,484,090
Research Laboratory
3,240,742
Commercial Property & Office Bldg.
3,029,605
Shopping Center
2,968,297
Department Store
2,848,159
Bank
2,835,508
Oil, Gas & Pipelines
2,322,602
Business Machines & Office Bldg.
2,269,711
Office Building
2,157,018
Source: Annual Financial Report for year ending July 31, 1977.
20
(1) Decrease in percentage of current tax collections for 1971, 1972 and 1973 and total tax collections
for tax years 1971 and 1972 was due to litigation with four oil companies over annexations of Bay
Water Areas. Under court settlement the companies paid $366,708 in taxes plus penalties and interest
for tax years 1971 and 1972 which is reflected in the 1973 total tax collections. Assessed valuations
for 1971 and 1972 were adjusted accordingly.
Ouataodiog
Table II Delinquent
Outstanding Taxes ae
Tax Net Cu-t Current Tax Delinquent Tax Total Tax Delinquent Percent of
Year Tax Levy Collecdons Collmdow Calleed- Taxes Current Levy
1971 (1) $11,187,204 $10,635,867 $289,950 $10,925,817 $1,601,886 14.3%
1972(l) 11,737,075 11.151,364 283.712 11,435,076 2,034,594 17.3%
1973 12,456,242 11,889,454 694,153 (1) 12,583,607 1,403,491 11.3%
1974 13,597,461 12,998,515 429,525 13,428,040 1,547,269 11.4%
1975 16,263,386 15,563,291 500,492 16,063,783 1,728,527 10.6%
1976 16,934,770 16.423,263 522,172 16,945,435 1,709,201 10.1%
1977 18,294,043 In Process of Collection
(1) Decrease in delinquent tax collections for tax years 1971 and 1972 are due to litigation with four oil
companies over annexations of Bay Water Areas. Assessed valuation and tax levies have been reduced
by the amounts agreed on in settlement and dismissal of the annexation suit between City and com-
panies as ordered by the Courts. Under Court settlement the companies paid $366,708 in taxes plus
penalties and interest for tax years 1971 and 1972. The payment is recorded in collection of delin-
quent taxes.
Source: Annual Financial Report for the year ended July 31, 1977.
Ad valorem tax becomes due October 1 and delinquent after January 31. No split payments or
discounts are allowed. Taxes which are delinquent are subject to a penalty starting February at 1 %,
increasing I% per month through June. In July the penalty jumps to 8% which is the maximum for a
penalty. Interest is also charged on the gross amount of the tax only and starts in February at 1h of 1%
per month.
The procedure for collection of delinquent taxes is quoted from the City Charter: "Article VII, Sec. 2.
Lien for taxes. All taxable property shall stand charged with a lien in favor of the city for all taxes levied
against the owner thereof, superior to all mortgages and other liens or encumbrances and all persons
purchasing such property shall take same subject to such lien. The tax collector and city attorney shall
file a proper claim for any unpaid taxes in any probate, bankruptcy or other judicial proceedings
administering the estate of the owner or any subsequent purchaser of property so subject to such lien.
Delinquent taxes may be collected and the lien securing the same may be enforced in any court having
jurisdiction."
19
Ad Valorem Tax Collection
and Delinquencies
The following Table I
sets forth a comparison of the taxable assessed valuation, tax rate levy and
percentage of taxes collected for the past six fiscal years. Table II sets forth a comparison of the tax
levies and also indicates the amount of uncollected delinquent taxes.
Table I
Taxable
Fi-1
Tax Ast sed
Tax Tax % Tax C-allectiom
Y-
Year Year Valuation
Rate Levy %Current %Total
Ending
1971 $ 708,050,743
$1.58 $11,187,204 95.1 (1) 97.7 (1)
7.31.72
1972 742,851,958
1.58 11,737,075 95.0(l) 97.4(l)
7.31 -73
1973 788,369,291
1.58 12,476,242 95.4(l) 101.0
7 -31 -74
1974 860,598,305
1.58 13,597,461 95.6 98.8
7 -31 -75
1975 1,056,063,538
1.54 16,263,386 95.7 98.8
7.31 -76
1976 1,099,659,929
1.54 16,934,770 97.0 100.1
7.31 -77
1977 1,270,419,712
1.44 18,294,043 In Process of Collection
7.31 -78
(1) Decrease in percentage of current tax collections for 1971, 1972 and 1973 and total tax collections
for tax years 1971 and 1972 was due to litigation with four oil companies over annexations of Bay
Water Areas. Under court settlement the companies paid $366,708 in taxes plus penalties and interest
for tax years 1971 and 1972 which is reflected in the 1973 total tax collections. Assessed valuations
for 1971 and 1972 were adjusted accordingly.
Ouataodiog
Table II Delinquent
Outstanding Taxes ae
Tax Net Cu-t Current Tax Delinquent Tax Total Tax Delinquent Percent of
Year Tax Levy Collecdons Collmdow Calleed- Taxes Current Levy
1971 (1) $11,187,204 $10,635,867 $289,950 $10,925,817 $1,601,886 14.3%
1972(l) 11,737,075 11.151,364 283.712 11,435,076 2,034,594 17.3%
1973 12,456,242 11,889,454 694,153 (1) 12,583,607 1,403,491 11.3%
1974 13,597,461 12,998,515 429,525 13,428,040 1,547,269 11.4%
1975 16,263,386 15,563,291 500,492 16,063,783 1,728,527 10.6%
1976 16,934,770 16.423,263 522,172 16,945,435 1,709,201 10.1%
1977 18,294,043 In Process of Collection
(1) Decrease in delinquent tax collections for tax years 1971 and 1972 are due to litigation with four oil
companies over annexations of Bay Water Areas. Assessed valuation and tax levies have been reduced
by the amounts agreed on in settlement and dismissal of the annexation suit between City and com-
panies as ordered by the Courts. Under Court settlement the companies paid $366,708 in taxes plus
penalties and interest for tax years 1971 and 1972. The payment is recorded in collection of delin-
quent taxes.
Source: Annual Financial Report for the year ended July 31, 1977.
Ad valorem tax becomes due October 1 and delinquent after January 31. No split payments or
discounts are allowed. Taxes which are delinquent are subject to a penalty starting February at 1 %,
increasing I% per month through June. In July the penalty jumps to 8% which is the maximum for a
penalty. Interest is also charged on the gross amount of the tax only and starts in February at 1h of 1%
per month.
The procedure for collection of delinquent taxes is quoted from the City Charter: "Article VII, Sec. 2.
Lien for taxes. All taxable property shall stand charged with a lien in favor of the city for all taxes levied
against the owner thereof, superior to all mortgages and other liens or encumbrances and all persons
purchasing such property shall take same subject to such lien. The tax collector and city attorney shall
file a proper claim for any unpaid taxes in any probate, bankruptcy or other judicial proceedings
administering the estate of the owner or any subsequent purchaser of property so subject to such lien.
Delinquent taxes may be collected and the lien securing the same may be enforced in any court having
jurisdiction."
19
(1) Assessed valuation and estimated market value of real property has been adjusted to reflect amounts agreed on in settlement
and dismissal of annexation suit between City and four oil companies over annexation of Bay Water Areas. Under the settle
ment, values were reduced and accordingly amounts were adjusted for 1971 and 1972.
(2) Amounts shown are net taxable assessed values after deductions of residential homestead exemptions granted to persons 65 years
of age and older and disabled veterans. Mobile homes, while classified as personal property may be residential homesteads.
Purauant to provisions of the Texas Constitution the City may exempt an amount from the assessed valuation on the home
steads of persom 65 years of age or older. The following table reflects the amounts the City granted for each tax year and the
amount such exemptions reduced the taxable assessed valuations.
Residential Homestead Exemptions
Disabled Veterans Exemptions
Year Number of Exemptions Value of Exemptions Average Value
1976 1,099 $2,184,241 $1,987.48
1977 1,217 2,348,918 1,990.09
Source: Annual Financial Report for the year ended July 31, 1977.
The ad valorem tax rate is levied each year by the City Council through the adoption of a tax ordi-
nance. If the City Council fails or neglects to pass a tax ordinance for any year, the tax ordinance last
passed shall be considered in force and effect as the tax ordinance for the year which the City Council so
failed to pass a tax ordinance, and the failure to pass such ordinance in any year shall in nowise invalidate
the collection of the tax for that year. The following table indicates the tax rate distribution for the past
five tax years and current tax year.
Tax General Interest &
Year Fund Sinking Fund Total
1972
Value
Number of
Value of
Average
Year
Exempt
Exemptions
Exemptions
Value
1979
$2,000
4,950
$13,952,525
$2,818.69
1974
4,000
5,527
21,016,609
3,802.54
1975
4,000
5,945
22,997,005
3,868.29
1976
4,000
6,926
29,977,173
9,790.26
1977
6,000
6,517
95,455,550
5,440.47
For the tax year
1976 under provisions of
the Texas Constitution, the
City must grant a minimum
exemption of $1,500 and
• maximum exemption of $5.000 of assessed value
of residential homesteads
of disabled veterans who Ole for
the exemption based on
• formula of the percent of disability claimed.
Disabled Veterans Exemptions
Year Number of Exemptions Value of Exemptions Average Value
1976 1,099 $2,184,241 $1,987.48
1977 1,217 2,348,918 1,990.09
Source: Annual Financial Report for the year ended July 31, 1977.
The ad valorem tax rate is levied each year by the City Council through the adoption of a tax ordi-
nance. If the City Council fails or neglects to pass a tax ordinance for any year, the tax ordinance last
passed shall be considered in force and effect as the tax ordinance for the year which the City Council so
failed to pass a tax ordinance, and the failure to pass such ordinance in any year shall in nowise invalidate
the collection of the tax for that year. The following table indicates the tax rate distribution for the past
five tax years and current tax year.
Tax General Interest &
Year Fund Sinking Fund Total
1972
80.95
$0.69
$1.58
1979
0.95
0.69
1.58
1974
0.95
0.69
1.58
1975
0.925
0.615
1.54
1976
0.925
0.615
1.54
1977
0.8619
0.5781
1.44
The maximum tax rate permitted by the Constitution of the State of Texas and the City Chatter is
$2.50 per $100 of assessed valuation. Prior to 1970, the City Charter limited the tax rate for Interest and
Sinking Fund purposes to $1.25 and for general governmental purposes to $1.25. The City's Charter was
amended in 1970 and there is now no limitation within the $2.50 rate for Interest and Sinking Fund
purposes. However, the City Council is restricted by Charter in calling an election for tax supported bonds
unless the interest and principal requirements of existing and the proposed debt can be met from the
estimated proceeds of a tax rate not in excess of $1.25 per $100.00 of assessed valuation.
18
REVENUES
Major Source of Revenues
The City's General Fund revenue sources include property taxes, a sales tax, franchise taxes, Federal
revenue sharing funds, contributions from City -owned utilities, fines and penalties, license and permits,
various service charges, and miscellaneous sources. The following tables reflect selected information of the
City's general governmental revenues.
Comparison of General Revenues by Source
Licensee Charges Utility System Contribution
General
Fiscal
Property Sel® Hotel Business And Municipal For Miscellaneous To General Fund
Revenue
Year
Taxes Tax Tax To— Permits Ctmn Fin® Servie® Revenues Water G.
Sharing
1972.79
$11,495,076 $4,062,785 $199,410 $1,019,209 $492,202 $657,455 $2,620,896 $2,909,509 5490,701 $781,215
$5,031,402
1973.74
12,583.607 4,552,413 227.288 1.127,974 353.807 684,627 2,727.107 2,659.353 267,245 818,458
3,918,471
1974.75
13,428,040 5,469,968 255,708 1.502,341 399,133 790,490 3,204,253 2,606.038 241,639 1.015.803
3,529,532
197576
16,063,789 6.002.747 319,695 1.408,058 398,603 938,762 5,421,545 3,026.339 279,769 1,400,714
3. 595,755
1976 -77
16,945,435 6,852,194 367,888 1.572,494 427,553 925,524 3,429,071 3,372,722 387,445 863,603
3.808.628
Ad Valorem Tax
The ad valorem property tax constitutes the City's largest single source of revenue. Subject to certain
exemptions, the property tax is imposed on real and personal property situated in the City.
Property Valuation Procedure
The City Tax Assessor and Collector is responsible for appraising all taxable property within the City
as of January 1 of each year. Owners of taxable property may render their property for taxation to the
City Tax Assessor and Collector between January 1 and April 30 of each year.
Assessment rolls prepared by the City Tax Assessor and Collector are reviewed by the Board of
Equalization which has the ultimate responsibility of equalizing the value of all comparable property in
the City. A hearing is granted by the Board to any property owner who rendered his property to the City
Tax Assessor and Collector and had the assessed valuation of his property increased by the Assessor.
Decisions of the Board of Equalization shall be final but may be appealed through civil action by the
property owner.
Assessed Valuations and Tax Rate
For taxation purposes, property is presently assessed at 60% of the theoretical full market value.
In 1974 the City had a re- evaluation program which affected approximately one -fourth of the City.
During 1975 a court order required the City to complete the re- evaluation program for the entire City
resulting in a substantial increase in assessed valuation. All properties are evaluated each year.
The following table sets forth a comparison of the total net taxable property as of January 1 of
each year.
REAL PROPERTY PERSONAL PROPERTY TOTAL
Net Net Net
Taxable Taxable Taxable p—,
A--d Estimated Arse ed Estimated Assessed age of Estmated
Year Value Market Value Value Market Value Value Increase Market Value
1971(1) $ 586.829,480 $ 978,049.153 $121.221,263 $202,035.438 $ 708,050343 15.3% $1,180.034,571
1972(1) 612.447,809 1, 020,746,338 130,404,155 217,340,258 742.851,958 4.9% 1,238.086,596
1973(2) 650,727,247 1,084.545.411 137,642,044 229. 403,406 788,369,291 6.1% 1,913,948.817
1974(2) 712,371.614 1,187,286,023 148,226,691 247,044,485 860.598.905 9.2% 1,434,990,508
1975(2) 900,360,474 1.500,600,790 155.709,064 259.505.106 1,056.069,538 22.7% 1,760.105,896
1976(2) 928,420,179 1,547,966,965 171,239,750 285,399,583 1,099.659,929 4.1% 1,892,766,548
1977(2) 1,078,744,699 1,797,907,832 191,675.013 319.458,555 1,270,419,712 15.5% 2,117,366,187
See footnotes m following page
17
5
Genera]
AID Ambulance
Marina
Parking
Data Processing
Airport
Airport
Facilities
Transit
Tourist and
Convention
Water(1)
Gas
Wastewater
Services
Insuranm
Revenue Sharing
Debt Service
General
Obligation
Junior Lien
Wastewater
Revenue
Revolving Funds
Maintenanm
Services
Stores Fund
Total
Less Balances
Shown Twim
Net Begtunrng
Balance
BUDGET SUMMARY
1977 -78
Beginning
$81,961,870
Operating
Capital
846.971
Unappropriated
Revennes
Total
Expenditures
Improvement
Reserve
Closing
Balance
Excluding
Inter-
Available
and
and Principal
App-
Balance
(8 -1 -77)
Inter -Fund
Fund
Resources
Tranafers
Retirement
priation
(741 -78)
8 1.154,719
426,077,659
8 6.768.999
$ 94,000,757
$39,066,099
$ 155.120
8 81.598
S 700,000
452,576
290,776
663,352
663.952
3,519
231,570
235,083
218,284
16,799
57,303
110.700
168,003
89,589
76,716
1,704
53.676
2,400
924,388
980,464
964.549
15,915
38.958
1,038,450
1,077,388
950,484
108,904
18,000
90,800
84.599
115,339
85,399
30,000
100,449
1.107.451
702.427
1,910,327
1.792,552
7,775
110,000
141,732
394,000
535,732
471,677
64.055
650,489
8,922,550
139,750
9,706,789
7,926,985
871,964
208,440
700,000
1,722,177
18,874,444
90,900
20,687,521
18,654,902
537,548
45,671
1,450,000
224.741
3.534.846
12,100
9,771,687
3,206.804
300,172
124.711
140,000
251,039
76,300
1,973,119
2,300,452
2,158.749
15,420
126,289
170,789
3.877,277
4,048.066
3,909.000
139,066
7,816,607
8,727,590
449,598
16,993.795
3,226,477
5.266,000
8,501,318
426.167
41,200
1,468,242
1,935,609
575,061
800,000
560,548
965,971
24,500
131,457
521,908
28.770
190,000
363,138
62,413
22.188
2,440,998
2,525,599
2,499,860
16,498
75,241
605,605
11,540
1,516,600
2,133,745
1.540.603
415
592.727
$13,877,142
$73,591,740
$16,842,734
$104,311,616
$81,961,870
$8,135.520
5846,971
113,967,255
(2)
(2)
$ 762.524
S 762.524
$15.114,618
Revenue Excluding Inter-Fund $75.591,740 Operating Expenditures
Decrease in Fund Balances 509,887 Construction and Principal Retirement
Total Appropriation $74,101,627 Reserve Appropriation
Less Inter -fund Revenues
Total Appropriation
(1) Does not include Choke Canyon Construction Fund whose cash balance and interest earnings have been appropriated by the City Council for the
purpose of constructing a new water supply facility.
(2) $589,411 investment in Stores Fund. 584,289 in Maintenance Services, $60.000 in Insurance Fund, and $28,824 in the Transit Fund.
•
$12,604,731
$81,961,870
8,195,520
846.971
(16,842.734)
$74,101,627
•
Budgetary Procedures
The State laws and the City Charter require the preparation and filing of an annual budget. The
City Manager prepares and submits to the City Council for approval the Annual Budget of the estimated
income and expenses for the coming year for all departments not later than the second regular meeting
in June of every year. The Council must comply with State laws as to notice and hearings on the budget
and at the conclusion of the hearings must meet and remain in session until the budget for the ensuing
fiscal year has been adopted. If no budget has been adopted before the first regular meeting of the
Council in August of each year, then the budget for the preceding fiscal year shall be deemed the budget
for that fiscal year.
Significant Accounting Policies
The City maintains its accounting records in accordance with the principles and policies set forth
by the National Committee on Governmental Accounting, as well as generally accepted accounting
principles as promulgated by the American Institute of Certified Public Accountants.
The accounting records are organized on the fund accounting concept. Each fund constitutes a
separate entity, and has its own set of self- balancing accounts. Accordingly, amounts receivable from, or
payable to, other funds are shown in the accounts of each fund and separately presented in the financial
statements until liquidated by payment or authorized interfund transfer.
The accounting records reflect compliance with legal provisions of the City Charter, ordinances and
other controlling laws and operating and capital budgets. Budgets are used to gauge financial operations
and legally restrict the level of expenditures.
The accrual basis of accounting is used for Enterprise, Intragovernmental Service, and Capital
Projects Funds. All other funds are accounted for under the modified accrual basis: i.e., expenditures
are recorded on the accrual basis and revenues are recorded as received in cash.
Fixed assets owned by the City, except those recorded in the intragovernmental service funds.
utility and other enterprise funds, are accounted for in the General Fixed Assets groups of accounts at
accumulated historical costs without addition for any value of assets acquired other than by purchase or
construction. Fixed assets acquired by the City through contributions from land developers who are
required by the City to construct streets and utility lines and to contribute park lands within the subdivi.
sion being developed and from annexations of surrounding areas are not recorded in the accounting
records.
Fixed assets recorded in the intragovernmental service funds, utility, and other enterprise funds are
recorded at cost and depreciated over the estimated useful lives of the assets.
General obligations bonds and other forms of long -term debt supported by ad valorem taxes are
accounted for in a self - balancing group of accounts entitled the General Long -Term Debt Group of
Accounts. Revenue Bonds are accounted for in the respective enterprise fund, as they will be paid from
those revenues.
Lease- purchase contracts for major data processing equipment are contingent upon funds being
appropriated in future fiscal periods for the lease payments. The City can stop payments at any time and
surrender the property with no further liability on either side. Also, title to the property remains with the
lessor until the final payment. As such, the City does not own the property and the property is not
included as an asset, nor are the future installments included as liabilities.
Inventories are recorded at the lower of cost or market with reductions made for permanent decreases
in value due to obsolescence, damage, deterioration, etc. Inventory issues are expensed on the first-in,
First -out and average cost bases. The nature of the inventory determines which cost method is used.
15
Certain Governmental Services Provided by the City
Public Safety ... The City provides police protection, fire protection, building inspection, street lighting
and traffic signals and civil defense. Law enforcement and civil defense is provided through the Police
department which maintains over 129 vehicles. The City's Fire department operates 12 fire stations
throughout the City and the A.I.D. Emergency Ambulance Service. The ambulance service is operated
jointly by the City and Nueces County Hospital District. The City is responsible for the purchase, opera-
tion, maintenance, equipping, housing and staffing of the ambulances and the communications sysem.
The Nueces County Hospital District is responsible for paramedical training of personnel who operate the
ambulances and the accounting for and the collection of all ambulance service fees. The City and the
District divide any operating loss on a fifty -fifty basis.
Public Services ... The City operates a waterworks, wastewater disposal, and gas systems. The City also
provides garbage collection and disposal and maintenance of streets and storm drainage areas. Additional
information concerning the City's water, wastewater disposal, and gas systems appear below under the
captions "Waterworks System ", "Wastewater Disposal System", "Gas System ".
Community Enrichment ..The City's main library and two branches are equipped with over 807,918
volumes. The City owns and maintains approximately 167 parks containing over 1,076 acres. The City
also owns extensive recreational facilities including 81 playgrounds, a marina with 451 yacht basin slips,
a municipal beach and fishing piers, two public golf courses (one municipally operated and one con-
structed and operated under a 80 year lease expiring April 2, 1995), eight swimming pools, 81 tennis
courts, several baseball and softball diamonds and other recreational centers. In addition the City owns an
auditorium, a coliseum and exposition hall, Little Theatre, the Corpus Christi Museum and the Art
Museum. A Community- Convention faciltiy is presently under construction.
Airport and Transit System...The City owns the Corpus Christi International Airport situated on 1,790
acres. The revenues derived from the operation are not generally pledged to the payment of any bonded
indebtedness. However, the City leases certain buildings and space occupied by the Federal Aviation
Administration whose rental payments are pledged to the payment of $750,000 Tax and Revenue
Certificates of Obligation issued heretofore by the City to expand the Airport Control Tower. Additional
information concerning these certificates of obligation appear above under the caption "General
Obligation Debt." The City's transit system provides passenger bus service between various areas within
the City and out -of -town charter service originating in the City.
Health... The City maintains preventive health services through health facilities within the Community.
Although the City has outstanding five issues of general obligation bonds issued in part for hospital
building purposes, the public hospitals located within the City are now owned and operated by the Nueces
County Hospital District. When the Hospital District was created in 1967 and took over operation of the
Hospital Facilities the District assumed that portion of the debt service on the bonds previously issued
by the City for hospital buildings and pays these amounts to the City annually. Additional information
concerning the amount of annual debt payments by the Hospital District appears above under the caption
"Debt Service Requirements General Obligation Bonds."
The City does not have the responsibility of maintaining hospitals, a school system, or a higher
education system and does not expend any funds in providing welfare.
CERTAIN ASPECTS OF THE CITY'S FINANCIAL PROCEDURES
Audit and Financial Reporting
The City Charter requires an annual audit to be made of the books of account, records and transac-
tions of the City by a Certified Public Accountant. The fiscal year of the City begins the first day of Aug-
ust of each year and ends with the thirty-first day of July of each year. The Municipal Finance Officers
Association of the United States awarded the City its Certificate of Conformance for its annual financial
report for 1957. In addition, the City has been awarded the Supplemental Certificate of Conformance
for the 1970 and 1975 annual financial reports. The city has been advised its 1976 Annual Financial
report continues to meet the reporting standards and the 1977 Annual Financial report has been submit-
ted for review.
14
CITY OF CORPUS CHRISTI
Population and Location:
The City's population as reported by the 1970 Census was 204,525, making Corpus Christi the state's
seventh largest city. According to City officials, the estimated 1977 population was 225,000.
The geographic location of the City on the Gulf of Mexico and the International Coastal Waterway
gives it one of the most strategic locations in the Southwest and has been important to its economic
development. From its early days, Corpus Christi has been a focal point for the marketing, processing,
packaging and distribution of agricultural commodities in a twelve- county trade area. Port of Corpus
Christi opened the city to world commerce in 1926.
Additional general information concerning the City's population and economy will be found under
the caption "Economic and Demographic Characteristics ".
Area and Topography
The area of the City has increased through annexations as the City's population and industry grew.
The City has had several annexations, which have been orderly, and now contains approximately 926
square miles which is broken down to approximately 105 square miles of land and 221 square miles of
water. While the areas covered by water contain no population and do not require normal city services,
it does produce considerable revenues from oil and gas properties located therein.
The topography of Corpus Christi is generally flat with rich soils broken by numerous bays. The
elevation ranges from sea level to thirty five feet.
Form of Government and Administration
The City was incorporated in 1852. It operated as a general law city until 1926 when a Home Rule
Charter with a commission form of government was adopted. The Charter was amended in 1945 and the
present Council - Manager form of government was adopted.
The City Council consists of the Mayor and six Councilmen. These seven Officials are listed on the
cover page of this document and are elected at large for two -year terms. The present terms of all elected
Officials expires in April 1979.
The City Manager is appointed by the City Council and is the chief administrative and executive
officer. The Director of Finance is appointed by the City Manager and is charged with the administration
of fiscal affairs.
The Board of Equalization is appointed by the City Council and supervises the assessing of taxable
property and fixing the assessed valuation. Valuation engineers are available to the Board. The City
Council fixes the annual tax rate based on a budget prepared under the direction of the City Manager.
The Assessor and Collector of Taxes is appointed by the City Manager and operates under the
supervision of the Director of Finance.
The Director of Public Utilities is appointed by the City Manager and is charged with the adminis-
tration and coordination of the City's water, sewer and gas systems.
The names of these appointed officials appear on the cover page of this document.
The City has approximately 9,125 employees. The composition of the City employees as of July 1976
and July 1977 was as follows:
July 1976
July 1977
Police Department ............................
997
985
Fire Department ..............................
904
919
All other Departments .........................
2,947
2,421
9,048
9,125
13
•
C
Summary Dear Statement
The following table shows the amount of bonded indebtedness and estimated overlapping debt of
the City as of July 31, 1977, as adjusted to give effect to the issuance of the Bonds.
Pro Forma Bonded Indebtedness
General Obligation Debt:
General Obligation Bonds ........ ............................(1)
$61,465,000
Tax Certificates of Obligation . ...............................
1,600,000
Tax and Revenue Certificates of Obligation .....................
785,000
Assumed Waterworks System Bonds ...........................
150,000
THE BONDS .................. ............................(2)
11,000,000
$ 75,000,000
Revenue Debt:
Junior Lien Waterworks System Revenue Bonds .................
13,605,000
Sewer System Revenue Bonds .. ...............................
980,000
$ 14,585,000
Total Direct Bonded Indebtedness ................ ...............................
$ 89,585,000
Estimated Overlapping Debt ..................... ...............................
$ 29,556,747
Total Direct and Estimated Overlapping Bonded Indebtedness .......................
$119,141,747
(1) Does not include $717,110 bonds assumed by the Nueces County Hospital District.
(2) Such amount was not outstanding on July 31, 1977 but is included for the purpose of giving effect
to the issuance of the Bonds.
Ratings
Moody's Investors Service, Inc. and Standard and Poor's Corporation have given the Bonds the ratings
of and respectively. An explanation of the
significance of such ratings may be obtained from the agency furnishing the rating. The ratings reflect
only the respective views of such organizations and the City makes no representation as to the appropriate-
ness 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 agencies, if in the judgment
of either or both agencies, 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.
12
Interest and Sinking Fund Management
$1,375,061
$158,569
1979
A 10 year
record of the City's policy of maintaining substantial
reserves for the next year's debt service
requirement on the City's general obligation bonds is set out below:
155,369
1981
1,388,906
Principal
Tax
1,385,137
Percent of
Year
And Interest
Collections &
I & SF Bal. at
New Year's
Ended
Requirements
Other Income
End of Year
Requirement
7 -31 -1968
$ 4,110,711
$3,900,791
$3,277,835
79.7%
7 -31 -1969
4,351,311
4,727,055
3,886,920
89.3%
7.31 -1970
5,014,579
4,662,483
4,130,742
82.4%
7 -31 -1971
5,192,664
5,734,398
14,850,561
93.4%
7.31 -1972
5,526,523
5,649,912
5,298,012
95.9%
7 -31 -1973
6,173,491
5,843,994
5,568,663
90.2%
7 -31 -1974
6,514,973
6,709,113
6,102,386
93.7%
7 -31 -1975
7,413,843
7,247,723
6,832,894
92.2%
7.31 -1976
7,605,893
7,814,050
7,224,144
95.0%
7 -31 -1977
8,319,377
8,293,645
7,905,397
95.0%
Revenue Bond Obligations
The table below shows the principal amount of the City's revenue bonds outstanding on July 31,
1977.
Title of Bond Outstanding
Junior Lien Waterworks System Revenue Bonds $13,605,000
Sewer System Revenue Bonds $ 980,000
The waterworks and wastewater disposal system are operated as separate utility systems, and the debt
requirements are met from pledges of the revenue of each separate system.
Debt Service Requirements
Revenue Bonds
Fiscal Year
Ending 7 -31 Water Sewer.
1978
$1,375,061
$158,569
1979
1,381,476
154,506
1980
1,391,163
155,369
1981
1,388,906
156,075
1982
1,385,137
156,625
1983
1,379,856
152,100
1984
1,383,063
157.419
1985
1,384,326
1986
1,378,645
1987
1.381,236
1988
1,381,667
1989
1,379,938
1990
1,376,049
M
•
•
Debt Service Requirements General Obligation Boards
The following table sets forth the principal and interest requirements on the City's general obligation
bonds including the effect of the issuance of the Bonds for the fiscal years ending July 31. The column,
Total All Issues, includes a portion of principal and interest due to the City by the Nueces County
Hospital District. These amounts are shown separately. In July 1967, the Hospital District was created and
on January 1, 1968 took over the operation of the hospital facilities and assumed the payment of debt
service on bonds previously issued by the City and by Nueces County for hospital building purposes. The
Hospital District levies and collects ad valorem taxes and pays to the City the amounts required to pay
debt service on the bonds issued by the city for hospital purposes.
Fiscal Year
Outstanding
THE BONDS
Total
Hosp.
Ending
Prin. & Int.
$11,000,000 Series 1978
All
Dist.
July 31
Requirements
Principal
Interest
Total
Issues
Portion
1979
$ 8,156,292
$800,000
$550,000
$850,000
$9,006,292
3161,357
1980
7,788,187
300,000
535,000
835,000
8,623,187
158,842
1981
7,337,029
350,000
520,000
870,000
8,207,029
147,302
1982
6.963,285
400,000
502,500
902,500
7,865,785
114,160
1983
6.574,341
450,000
482,500
932,500
7,506,841
56.208
1984
6,229,246
500,000
460,000
960,000
7,189,246
26,912
1985
5,521,113
500,000
435,000
935,000
6,456,113
1986
4,767,410
500,000
410,000
910,000
5,677,410
1987
4,087,870
500,000
385,000
885,000
4,972,870
1988
3,805,237
550,000
360,000
910,000
4,715,237
1989
3,366,619
600,000
332.500
932,500
4,299,119
1990
3,085,269
600,000
302,500
902,500
3,987,769
1991
2,710,538
600,000
272,500
872,500
3,583,038
1992
2,549,625
600.000
242,500
842,500
3,392,125
1993
2,170,650
650,000
212,500
862,500
3,033,150
1994
1,676,325
700,000
180,000
880,000
2,556,325
1995
1,377,000
700,000
145,000
845,000
2,222,000
1996
915,000
700.000
110,000
810,000
1,725,000
1997
677,500
750,000
75,000
825,000
1,502.500
1998
750,000
37,500
787,500
787,500
For purpose of illustration interest on the Bonds calculated at 5 %.
See page F -9
for summary of debt
requirements
setting out total
principal and
interest requirements
for
each year.
10
Debt Ratias
The following table shows a comparison of the ratios of net general obligation debt, the estimated net
overlapping debt and the combined net debts to the assessed value of taxable property and estimated
population in the City for the past five fiscal years and after giving effect to the issuance of The Bonds.
For the purpose of this table net direct debt consists of the City's general obligation bonds less the amounts
considered self- supporting debt and applicable interest and sinking funds. The population estimates are
by the City's Department of Planning and Urban Development.
Debt Margin
The following schedule is an approximate computation of the City's legal debt capability at July 31,
1977 after giving effect to the issuance of the Bonds:
1977 Total Taxable Assessed Valuation (60% of Actual) ............................ $1,270,419,712
Debt Limit - General Obligation Bonds (1) ......... ............................... 163,098,865
Total General Obligation Bonds Outstanding (Including The Bonds) ...... $75,000,000
Less: Interest & Sinking Fund ....... ............................... 7.905,397
Debt Applicable to Debt Limit ................... ............................. .. $ 67,094,603
Additional Legal Debt Capability ................. ............................... $ 96,004,262
(1) Assumption: A tax rate of $1.25 at 90% collection would produce debt service tax revenue of
$14,222,221 which would service $163,098,865 bonds assuming a 6% interest rate and maturing
serially over 20 years.
9
Adjusted to
Reflect
Fiscal Year Ended 7 -31
The Ronde
1977
1976 1975
1974
1973
Asse—d Valuation
(60% of actual)
$1.270,419.712
$1,099,659,929
$1.056,063,538 $860,598905
$788.369.291
$742,851,958
Population
225,000
225,000
222,500 220,000
215,000
211,000
Net Direct Debt
$ 64,058.310
$ 53,058.310
$ 46,714.514 $ 44,591998
$ 43.315.855
$ 41.088,855
Ratio to Assessed
Value
5.04%
4.82%
4.42% 5.18%
5.49%
5.53%
Per Capita
$285
$236
$210 $203
$201
$195
Net Overlapping
Debt
$ 29,556,747
3 29.452,197
S 52,916,025 $ 35,881,665
$ 38,027,841
$ 35,516,245
Ratio to Assessed
Value
2.33%
2.68%
3.12% 4.17%
4.82%
4.51%
Per Capita
$131
$131
$148 $163
$177
$159
Net Direct and
Overlapping Debt
$ 93.615.057
8 82,510,507
S 79,630.539 $ 80,473,064
$ 81943,696
$ 74,604.443
Ratio to Assessed
Value
7.37%
7.50%
7.54% 9.35%
1091%
10.04%
Per Capita
$416
$367
$358 $366
$378
$354
Sourm: Fiscal year figures from Annual Financial Report for the Year ended July 31, 1977.
Debt Margin
The following schedule is an approximate computation of the City's legal debt capability at July 31,
1977 after giving effect to the issuance of the Bonds:
1977 Total Taxable Assessed Valuation (60% of Actual) ............................ $1,270,419,712
Debt Limit - General Obligation Bonds (1) ......... ............................... 163,098,865
Total General Obligation Bonds Outstanding (Including The Bonds) ...... $75,000,000
Less: Interest & Sinking Fund ....... ............................... 7.905,397
Debt Applicable to Debt Limit ................... ............................. .. $ 67,094,603
Additional Legal Debt Capability ................. ............................... $ 96,004,262
(1) Assumption: A tax rate of $1.25 at 90% collection would produce debt service tax revenue of
$14,222,221 which would service $163,098,865 bonds assuming a 6% interest rate and maturing
serially over 20 years.
9
Estimated Overlapping Net Debt
Expenditures of the various taxing bodies, such as school and special districts, 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 table reflects the estimated share of overlapping net debt of these various taxing bodies.
(2) Adjusted to include $750,000 Issue sold August 22, 1977.
Source: Annual Financial Report for year ended July 31, 1977.
Percent
Overlapping
Taxing Body Net Debt
As of
Overlapping
Net Debt
Calallen I.S.D. $ 2.353,402
7 -31 -77
74.65
$ 1,756.815
Corpus Christi LS.D. 19,244,235
7 -31 -77
85.96
16,542,344
Corpus Christi Jr. College Dist. 889,528
7 -31 -77
85.96
764,638
Flour Bluff LS.D. -0-
7 -31 -77
90.99
-0-
Lower Nueces River
Water Supply Dist.(]) 7,682,661
7 -31.77
88.10
-0-
Nueces County 12,570,229
7 -31 -77
51.26
6,443.499
Nueces County Hospital Dist, 717,110
7 -31.77
51.26
367,591
Nueces County Navigation Dist. -0-
7 -31.77
51.49
-0-
Nueces County Road Dist. No. 4 -0-
7 -31 -77
14.92
-0-
Nueces County WC & ID No. 4 (2) 2,504,741
7 -31 -77
13.94
349,161
Port Aransas I.S.D 2,083,083
7 -31.77
1.39
28,955
Tuloso- Midway I.S.D. 3,200,514
7 -31 -77
37.09
1,185,150
West Oso I.S.D. 3,722,056
7 -31 -77
56.92
2,118,594
Total Overlapping Net Debt .............. ...............................
$29,556,747
(1) The City and Lower Nueces River Water Supply District have entered into a contract
under which
the District will not levy ad valorem taxes and the
City agreed to make supplement
payments to the
District based on operating cost and sinking fund requirements.
Therefore, although the District has
tax bonds outstanding, the District's net debt is considered to be
self - supporting. See under caption,
"Waterworks System" for additional information.
(2) Adjusted to include $750,000 Issue sold August 22, 1977.
Source: Annual Financial Report for year ended July 31, 1977.
The maximum tax rate permitted by the Constitution of the State of Texas and the City Charter is
$2.50 per $100 of assessed valuation. Prior to 1970 the City Charter limited the tax rate for Interest
and Sinking Fund purposes to $1.25 and for general governmental purposes to $1.25. The City's Charter
was amended in 1970, and there is now no limitation within the $2.50 rate for Interest and Sinking
Fund purposes. However, the City Council is restricted by Charter in calling an election for tax supported
bonds unless the interest and principal requirements of existing and the proposed debt can be met from
the estimated proceeds of a tax rate not in excess of $1.25 per $100.00 of assessed valuation.
General Obligation Debt
The direct bonded debt of the City which is payable out of the ad valorem tax receipts consists of the
City's general obligation bonds, assumed bonds of water districts, tax certificates of obligation, and combi-
nation tax and revenue certificates of obligation.
The table below shows the amount of direct tax supported debt of the City which was outstand-
ing on July 51, 1977 and the amounts deducted as self- supporting debt and applicable interest and sink-
ing funds relating to such debt. It is adjusted to reflect issuance of the Bonds.
General Improvement Bonds ....................... ............................... $ 61,465,000
Tax Certificates of Obligation ...................... ............................... 1,600,000
Tax & Revenue Certificates of Obligation ............ ............................... 785,000
Assumed Water District Bonds ...................... ............................... 150,000
Total Indebtedness Payable From Taxes ..... ............................... $ 64,000,000
Less: Applicable Interest & Sinking Funds .............................. $7,689,580(1)
Self- Supporting Debt:
Hospital Bonds .............................. $ 717,110(2)
Certificates of Obligation ..................... 2,885,000(5)
Assumed Water Bonds ....................... 150,000(4)
$5,252,110 $ 10,941,690
Net Indebtedness Payable From Taxes
(As of July 31, 1977) ............. ............................... $ 55,058,510
THE BONDS .................................... ............................... $ 11,000.000
Net Indebtedness Payable From Taxes ........... ............................... $64,058,510
(1) The total Interest and Sinking Fund is $7,905,597. After deducting $215,817 of the fund which
applies to self - supporting tax debt, the applicable Interest and Sinking Fund is $7,689.580.
(2) The Nueces County Hospital District has assumed $717,110 of general obligation bonds previously
issued by the City for hospital purposes.
(5) All certificates of obligation are considered to be self- supporting. Debt service on the $1,600,000 Tax
Certificates of Obligation for the purchase of a natural gas system are paid from gas system revenues.
Debt service on $700,000 Combination Tax and Revenue Certificates of Obligation for the Airport
are paid from gross revenues of a lease contract with the Federal Aviation Agency and $85,000 for the
Marina to be paid from gross revenues of the Marina.
(4) Net revenues of the water system adequately covets all revenue debt service as well as debt service on
the $150,000 assumed water district bonds.
(1) Voted and to be issued as Certificates of Obligation
ANTICIPATED ISSUANCE OF ADDITIONAL GENERAL IMPROVEMENT BONDS
The $32,925,000 of Bonds authorized on November 8, 1977 are expected to generate $29,490,000
in Federal -State assistance and the total construction program of $62,415,000 is projected over the
next three years. The issuance and sale of the remaining authorized but unissued Bonds is anticipated
over this period, but the City will not offer for sale any General Improvement Bonds within ninety days
of this sale.
DEBT
P¢ywn¢nt Record
The City of Corpus Christi has not defaulted in the payment of the principal of, or interest on,
its debt obligations within the last twenty five years nor has the City issued any refunding securities for
the purpose of preventing a default in principal of, or interest on, its debt obligations within this period.
Authority for Issuonce of Debt; Limitations
The City is authorized to issue ad valorem tax supported general obligation bonds to finance capital
improvements. A majority vote of the qualified voters is ordinarily required to authorize the issuance
of ad valorem tax supported bonds.
The City is also empowered to issue tax certificates of obligation for the purpose of paying any
contractual obligation incurred in the construction of public work or the purchase of land, materials
and other supplies or services for the City's needs. Such certificates of obligation may be refunded by
tax supported general obligation bonds. In addition the City may issue certificates of obligation with
a pledge of both tax and revenues derived from the operation of the facility to be acquired provided
the City otherwise has the right to pledge the revenues involved. The issuance of certificates of
obligation does not require voter approval except under certain circumstances. The City has outstanding
one issue of tax certificates of obligation and two issues of combination tax and revenue certificates
of obligation.
The City is also authorized to issue revenue bonds for certain purposes. The authorized purposes
include the financing of the water system, the wastewater disposal system, gas system, transportation
system, civic center, airport and parks. The revenue bond indebtedness is not considered in determining
the legal debt margin on ad valorem tax supported general obligation bonds.
AUTHORIZED BUT UNISSUED GENERAL IMPROVEMENT BONDS
The
following table indicates the amount of authorized but unissued tax supported debt after
We of the Bonds:
Amount
Date
Amount
Previously
The
Unissued
Voted
Pur
Authorized
Issued
Bonds
Bonds
6 -26 -76
Convention Facilities
$14,400,000
$8,000,000
$ 6,000,000
$ 400,000
11.8 -77
Sanitary Sewers
11,710,000
-0-
2,550,000
9,180,000
11.8.77
Airport
825,000
-0-
500,000
525,000
11.8 -77
Transit
100,000
-0-
-0-
100,000
11 -8 -77
Parks and Recreation
4,510,000
-0-
550,000
5,760,000
11.8.77
Public Buildings -
1,690,000
-0-
300,000
1,590,000
11.8 -77
Public Safety Buildings
915,000
-0-
150,000
765,000
11.8 -77(1)
Public Safety Equipment
950,000
-0-
-0-
950,000
11.8 -77
Storm Sewer
3,000,000
-0-
285,000
2,715,000
11.8 -77
Streets
9,425,000
-0-
885,000
8,540,000
$47,325,000
$8,000,000
$11,000,000
$28,325,000
(1) Voted and to be issued as Certificates of Obligation
ANTICIPATED ISSUANCE OF ADDITIONAL GENERAL IMPROVEMENT BONDS
The $32,925,000 of Bonds authorized on November 8, 1977 are expected to generate $29,490,000
in Federal -State assistance and the total construction program of $62,415,000 is projected over the
next three years. The issuance and sale of the remaining authorized but unissued Bonds is anticipated
over this period, but the City will not offer for sale any General Improvement Bonds within ninety days
of this sale.
DEBT
P¢ywn¢nt Record
The City of Corpus Christi has not defaulted in the payment of the principal of, or interest on,
its debt obligations within the last twenty five years nor has the City issued any refunding securities for
the purpose of preventing a default in principal of, or interest on, its debt obligations within this period.
Authority for Issuonce of Debt; Limitations
The City is authorized to issue ad valorem tax supported general obligation bonds to finance capital
improvements. A majority vote of the qualified voters is ordinarily required to authorize the issuance
of ad valorem tax supported bonds.
The City is also empowered to issue tax certificates of obligation for the purpose of paying any
contractual obligation incurred in the construction of public work or the purchase of land, materials
and other supplies or services for the City's needs. Such certificates of obligation may be refunded by
tax supported general obligation bonds. In addition the City may issue certificates of obligation with
a pledge of both tax and revenues derived from the operation of the facility to be acquired provided
the City otherwise has the right to pledge the revenues involved. The issuance of certificates of
obligation does not require voter approval except under certain circumstances. The City has outstanding
one issue of tax certificates of obligation and two issues of combination tax and revenue certificates
of obligation.
The City is also authorized to issue revenue bonds for certain purposes. The authorized purposes
include the financing of the water system, the wastewater disposal system, gas system, transportation
system, civic center, airport and parks. The revenue bond indebtedness is not considered in determining
the legal debt margin on ad valorem tax supported general obligation bonds.
Bondkolders' Remedies:
The Ordinance does not specifically provide any remedies that would be available to a Bondholder
if the City defaults in the payment of the principal or interest on the Bonds or for the appointment
of a Trustee to protect and enforce the interests of the Bondholders upon the occurrence of such
a default. If a holder of a Bond does not receive payment of principal or interest when due, the holder
could seek to obtain a writ of mandamus from a court of competent jurisdiction requiring the City
to observe the covenants contained in the Ordinance or could presumably recover a judgment against
the City. The enforcement of a claim for the payment of a Bond would also be subject to the applicable
provisions of the Federal bankruptcy laws.
Legal Investments In Texas
The Bonds are legal investments for all banks, trust companies, building and loan associations,
savings and loan associations, insurance companies, fiduciaries, trustees, and guardians, and for all
interest and sinking funds and other public funds of the State of Texas and all agencies, subdivisions,
and instrumentalities of the State of Texas, including all counties, cities, towns, villages, school
districts, and all other kinds of public agencies. The Bonds are also eligible security for all deposits
of public funds of the State of Texas and all agencies, subdivisions, and instrumentalities of it, including
all counties, cities, towns, and other kinds of districts, public agencies, and bodies politic, to the
extent of the market value of the Bonds, when accompanied by any unmatured interest coupons
appurtenant thereto, No review has been made of the laws of states other than Texas to determine
whether the Bonds are legal investments for various institutions in those states,
USE OF BOND PROCEEDS
The proceeds from the sale of the Bonds will be used for the following purposes:
$ 6,000,000
Community - Convention Facility
2,580,000
Sanitary Sewers
900,000
Airport
550,000
Parks and Recreation
900,000
Public Buildings
150,000
Public Safety Facilities
285,000
Storm Sewer
885,000
Street Improvements
$11,000,000 Total
In the issuance of the Bonds, special consideration has been given to the estimated useful life of the
construction, improvements and extensions being made as related to the maturity schedule of the Bonds
being issued for those purposes.
•
$11,000,000
CITY OF CORPUS CHRISTI, TEXAS
GENERAL IMPROVEMENT BONDS, Series 1978
INTRODUCTION
This Official Statement of the City of Corpus Christi, Texas (the "City" or "Corpus Christi ") is
provided to furnish information in connection with the sale of the City's General Improvement Bonds,
Series 1978 (the "Bonds "), in the aggregate principal amount of $11,000,000.
THE BONDS
Purpose and Authorization
The Bonds are to be issued pursuant to an Ordinance (the "Ordinance ") adopted by the City Council
of Corpus Christi. $6,000,000 of the Bonds constitute the second installment of a total authorization of
$14,400,000 of general improvement bonds of the City authorized by an election held within the City on
June 26, 1976 for the purpose of constructing a Communky-Convention Facility. $5,000,000 of the
Bonds constitute the first installment of a total authorization of $52,925,000 of general 'improvement
bonds authorized at an election held November 8, 1977. The November election contained nine various
improvement propositions, Sanitary Sewers, Airport, Transit, Park and Recreation, Public Buildings,
Public Safety Buildings, Public Safety Equipment, Storm Sewers and Streets. See captions, "Use of Bond
Proceeds" and "Authorized But Unissued General Improvement Bonds" for more complete details.
Form of Bonds
The Bonds will be issued in the form of coupon bonds in the denomination of $5,000. The Bonds
and coupons appertaining thereto will not contain any provision for registration, either as to principal
only or as to principal and interest.
Interest, Maturities and Places of Payment
The Bonds are to be dated February 15, 1978, and will bear interest from that date at the rates
specified on the cover or first page of this Official Statement. Interest on the Bonds will be payable on
August 15, 1978, and thereafter semiannually on February 15 and August 15 of each year. The bonds
will mature in amounts and on dates (February 15 of each year) set forth on the cover or first page of this
Official Statement.
The principal of, and interest on, the Bonds will be payable at Corpus Christi National Bank, Corpus
Christi, Texas, or, at the option of the holder, at Chase Manhattan Bank, New York, New York,
or Harris Trust and Savings Bank, Chicago, Illinois.
Security for the Bonds
In the Ordinance, the City levies, and covenants that it will collect, an ad valorem tax, within
the limits prescribed by law, against all taxable property of the City sufficient to meet the debt service
requirements on the Bonds.
The Constitution of the State of Texas and the Charter of the City provides that the ad valorem
taxes levied by the City for general purposes and for the purpose of paying the principal and interest
on the City's indebtedness shall not exceed $2.50 for each one hundred dollars of assessed valuation
of taxable property. There is no limitation within the $2.50 rate for interest and sinking fund purposes.
However, the City Council is restricted by the Charter in calling an election for tax supported Bonds
unless the interest and principal requirements of existing and the proposed debt can be met from the
estimated proceeds of a tax rate not in excess of $1.25 per one hundred dollars of assessed valuation of
taxable property.
OFFICIAL STATEMENT SUMMARY
The following material is qualifted in its entirety by the detailed information and financial statements appearing
in this Official Statem-ent.
The Offering
The Issuer ...................... The City of Corpus Christi, Texas.
Issue and Date ................... $11,000,000 General Improvement Bonds, Series 1978. The Bonds are
dated February 15, 1978.
Use of Proceeds .................. The construction of convention facilities and various general improvement
projects.
Amounts and Maturities .......... The Bonds will mature on February 15 in amounts of $500,000 in 1979 and
1980, $850,000 in 1981, $400,000 in 1982, $450,000 in 1988, $500,000 in
1984 through 1987, $550,000 in 1988, $600,000 in 1989 through 1992,
$650,000 in 1999, $700,000 in 1994 through 1996, $750,000 in 1997 and
1998.
Interest Payment Dates ........... Each February 15 and August 15 beginning August 15, 1978.
Optional Provisions ............... In inverse numerical order on February 15, 1988 and /or any interest payment
date thereafter at par and accrued interest to the date fixed for redemption
plus a premium of 2y2%, such premium to be reduced t/4 of 1% on
February 15 of each year thereafter.
Security for Payment ............. Principal and interest on the Bonds will be payable out of receipts from an
ad valorem tax levied on all taxable property within the City, within the
limits prescribed by law.
SELECTED FINANCIAL AND TAX DATA
January 1, 1977 Estimated Market Value of All Taxable Property ..............................
$2,117,566,187
January 1, 1977 Total Taxable Assessed Valuation (60% of Actual ) .............................
1,270,419,712
Total General Obligation Debt (Including the Bonds) ......... ...............................
75,000,000
Less: Self Supporting Debt ..................... ............................... $5.252,110
Applicable Interest & Sinking Fund ......... ............................... 7,689,580
10,941,690
NETDEBT ............................................. ...............................
$ 64.058.310
Ratio Net Debt to Estimated Market Value .................. ...............................
3.03%
Ratio Net Debt to Taxable Assessed Valuation ............... ...............................
5.04%
Net Debt Per Capita (1977 Estimate- 225, 000) ............... .............................
..
$284.70
Average Current Tax Collections Past Five Years ............. ...............................
95.7%
Average Total Tax Collections Past Five Yeats ............... ...............................
99.2%
Debt figures as of July 31, 1977 and adjusted to include these $11,000,000 Bonds
•
•
This Official Statement does not constitute an offer to sell, or solicitation of an offer to buy, any
of the Bonds to any person in any jurisdiction in which such offer or solicitation is unlawful.
The information contained herein has been obtained from sources believed to be reliable, but no
guarantee is made as to the accuracy or completeness of such information. Information concerning
initial offering prices or yields has been furnished by the initial purchasers of the Bonds. No person
is authorized to give any information or to make any representations with respect to this offering
not contained in this Official Statement and, if given or made, such information or representations
must not be relied upon as having been authorized by the City. The delivery of this Official
Statement at any time does not imply that the information herein is correct as of any time subsequent
to its date.
TABLE OF CONTENTS
Page
Official Statement Summary ............................ ...............................
3
Introduct ion.......................................... ...............................
4
TheBonds ........................................... ...............................
4
Use of Bond Proceeds .................................. ...............................
5
Authorized But Unissued General Obligation Bonds ........ ...............................
6
Anticipated Issuance of Additional General Obligation Bonds ...............................
6
Debt................................................ ...............................
6
Payment Record .................................. ...............................
6
Authority for Issuance of Debt; Limitations ............ ...............................
6
General Obligation Debt ........................... ...............................
7
Estimated Overlapping Net Debt .................... ...............................
8
DebtRatios ...................................... ...............................
9
DebtMargin ...................................... ...............................
9
Debt Service Requirements General Obligation Bonds ... ...............................
10
Interest and Sinking Fund Management ............... ...............................
11
Revenue Bond Obligations .......................... ...............................
11
Debt Service Requirements Revenue Bonds ............ ...............................
11
Summary Debt Statement ........................... ...............................
12
Ratings.......................................... ...............................
12
City of Corpus Christi .................................. ...............................
13
Certain Aspects of the City's Financial Procedures .......... ...............................
14
BudgetSummary 1977.1978 ............................ ...............................
16
Revenues............................................. ...............................
17
Expenditures for Selected Funct ions ...................... ...............................
22
Waterworks System .................................... ...............................
23
Wastewater Disposal Syst em ............................. ...............................
24
GasSystem ........................................... ...............................
24
Comparative Utility Systems Operating Statement .......... ...............................
25
UtilityConnect ions .................................... ...............................
25
International Airport .................................. ...............................
25
TransitSystem ........................................ ...............................
25
Annexation Program ................................... ...............................
26
Legislation and Litigation .............................. ...............................
27
Economic and Demographic Characteristics ............... ...............................
28
LegalOpinions ..................................... ...............................
39
Financial Consultant s .................................. ...............................
39
Successful Bidder ...................................... ...............................
39
Independent Audit s .................................... ...............................
39
City's Annual Financial Reports ......................... ...............................
39
FinancialStatements ..................................................................
F -1.8
Summary Debt Service Requirements General Obligation Bonds ..............................
F•9
OFFICIAL STATEMENT DATED JANUARY 18, 1978
Interest Fsempt, in the Opinion of Bond Counsel, from Present Federal Income
Taxes Under Fiisting Statutes, Regulations, Ruhngs and Court Decisions.
NEW ISSUE Ratings: Moody's:
Standard & Poors:
$11,000,000
CITY OF CORPUS CHRISTI, TEXAS
GENERAL IMPROVEMENT BONDS, Series 1978
Dated: February 15, 1978
Denomination: $5,000
Principal and semi - annual interest (February 15 and August 15) payable at Corpus Christi National
Bank, Corpus Christi, Texas or at the option of the holder, at Chase Manhattan Bank, New York, New
York, or Harris Trust & Savings Bank, Chicago, Illinois.
The Bonds constitute direct and voted general obligations of the City of Corpus Christi, Texas and
are payable from ad valorem taxes levied against all taxable property located therein, within the limits
prescribed by law.
MATURITY SCHEDULE
(February 15)
Amount Rate Maturity Yield Amount Rate Maturity Yield
$800,000 1979 $600,000 1989
800,000 1980 600,000 1990
850,000 1981 600,000 1991
400,000 1982 600,000 1992
450,000 1985 650,000 1998
500,000 1984 700,000 1994
500,000 1985 700,000 1995
500,000 1986 700,000 1996
500,000 1987 750,000 1997
550,000 1988 750,000 1998
Optional Provision: Bonds maturing on and after February 15, 1989 shall become optional for
redemption in their inverse numerical order on February 15, 1988 and /or any interest payment date
thereafter at par and accrued interest to the date fixed for redemption plus a premium of 2y2 %, such
premium to be reduced K of 1 %v on February 15 of each year thereafter.
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 March 17, 1978
Ratings - Rating applications have been made to Moody's Investors Service and Standard & Poor's
Corporation. The outcome of their determinations will be provided as soon as possible. The outstanding
General Improvement Ronda of the City are rated "An" by Moody's and "AA" by Standard & Foot's.
�J
Place and Time of Sale ... The City Council of the City of Corpus Christi, Texas, will receive sealed bids at
the City Council Chambers, City Hall, 802 Shoreline Drive, until 11 A.M. on Wednesday, February 15,
1978, for the bonds more completely described in the "Official Statement" which is a part hereof.
Address of Bids ... All bids should be plainly marked "Bid for Bonds" and addressed to the Mayor and
City Council, City of Corpus Christi, Texas. All bids must be submitted on the Official Bid Form, without
interlineation or alteration. Two copies of the bid form are enclosed.
Interest Rate ... Bids must be for all or none of the bonds. Bidders shall specify the interest rate or rates
the bonds are to bear. Not more than five (5) different rates of interest nor more than four (4) rate
changes will be acceptable and such rates shall be in multiples of 1/8 and /or 1 /20th of 1% with no
greater difference than 2% between the lowest and highest rates named. Only one rate shall be used for
bonds maturing in any one year and only one coupon will be attached to each bond for each installment
of interest thereon. Bids providing for supplemental coupons will not be considered. No bid of less than
par and accrued interest will be considered.
Basis for Award ... The net interest cost of each bid will be computed by determining, at the coupon rate
or rates specified, the total dollar value of all interest on the bonds from their date to the respective
maturity dates and deducting therefrom the premium bid, if any. The bonds will be awarded to the
bidder whose bid, on the above computation, produces the lowest interest cost to the issuer. In the event
of an error in computing the interest cost, the coupon rates specified on the Official Bid Form will be
considered as the correct bid.
The City Council of the City of Corpus Christi, Texas, reserves the right to reject any or all bids,
and to waive any irregularities, except time of filing.
Good Faith Deposit ... A Good Faith Deposit shall be required in the amount of $220,000 and shall be in
the form of a Cashier's Check payable to the City of Corpus Christi. The Good Faith Deposit shall be
retained uncashed by the City and applied on the purchase price of the bonds, or returned to the
successful bidder upon payment for the bonds, whichever he desires. If the successful bidder shall fail or
neglect to complete the purchase of the bonds in accordance with the terms of his bid, the Good Faith
Deposit will be cashed and the proceeds retained by the City as complete and full liquidated damages. No
interest will be allowed on the Good Faith Deposit, The above mentioned Cashier's Check 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 by the bank
on which drawn and which authorized its use as a Good Faith Deposit by the successful bidder who shall
be named in such instructions. Checks of unsuccessful bidders will be returned upon award of bonds.
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, Dallas, Texas
(see Legal Opinions in Official Statement); the opinion of said firm will be printed on the bonds.
Printed Bonds ... The City will furnish bonds of $5.000 denomination printed on standard lithographed
forms. It is anticipated that CUSIP identification numbers will be printed on the bonds, but neither the
failure to print such numbers on any bonds, nor any error with respect thereof, shall constitute cause for
a failure or refusal by the purchaser thereto to accept delivery of and pay for the bonds in accordance with
the terms of the purchase contract. All expenses in relation to the printing of CUSIP numbers on the bonds
shall be paid by the issuer; however, the CUSIP Service Bureau charge for the assignment of said numbers
shall be the responsibility of and shall be paid by the purchaser.
No-Litigation Certificate... The City will execute and deliver to the Purchaser a certificate that no
litigation of any nature has been filed or is then pending to restrain or enjoin the issuance and delivery of
the Bonds or the coupons appertaining thereto, or which would affect the provisions made for their
payment or security, or in any manner questioning the validity of the Bonds or coupons.
Delivery... The bonds will be delivered without cost to the purchaser at any bank in Austin, Texas or the
successful purchaser may elect to accept delivery at any bank located in a Federal Reserve City and at the
expense of the purchaser. It is anticipated that delivery can be made on or about March 17, 1978. City's
Financial Consultants will give the purchaser at least five business days advance notice of the date on
which anticipated delivery can be made. Purchaser agrees to make payment for the bonds in immediately
available funds. If for any reason the City is unable to make delivery on or before April 15, 1978, then
the successful bidder may accept delivery thereafter at his option for an additional thirty days. Any such
request shall be in writing and sent by registered mail to the City Manager.
Official Statement... Upon award of the bonds, the initial purchaser may arrange for the amendment and
completion of the cover or first page in accordance with the terms of the sale and subsequently may use
the Official Statement in presentation of the bonds to prospective purchasers. Information with respect to
interest rates and other matters relating to the re- offering for sale of the bonds are the responsibility of the
successful bidder and such information is not provided herein.
Certification as to Official Statement... At the time of payment for and delivery of the bonds, the City
will furnish the successful bidder a certificate, signed by the City Manager, and Director of Finance, acting
in their official capacity, to the effect that the "Official Statement' has been authorized and approved by
the City Council, and to the best of their knowledge and belief, and after reasonable investigation:
(a) neither the "Official Statement' nor any amendment or supplement thereto contains any untrue
statement of a material fact necessary to make the statements therein, in light of the circumstances in
which they were made, not misleading; (b) since the date of the "Official Statement' no event has
occurred which should have been set forth in an amendment or supplement to the "Official Statement"
which has not been set forth in such amendment or supplement: (c) nor has there been any material
adverse change in the operation or financial affairs of the City since the date of such "Official Statement ".
The Official Statement, Official Notice of Sale and Official Bid Form will be approved as to form and
content and the use thereof in the offering of the bonds will be authorized, ratified and approved by the
City Council on the date of sale, and the purchaser will be furnished, at the time of payment for and
delivery of the bonds, a certified copy of such approval, duly executed by the proper officers.
Additional Copies of Statement, Notice and Bid Form... Additional copies of the Official Statement and
Official Bid Form, as available over and above the normal mailing, may be obtained at the office of
M. E. Allison & Co., Inc. Investment Bankers, National Bank of Commerce Building, San Antonio, Texas
78205, Financial Consultants to the City. The City will furnish to the successful purchaser fifty copies
of the Official Statement. If the purchaser requires more than fifty copies. he will have to arrange at
his own expense to have the Official Statement reproduced.
Attest:
Bill G. Read.
City Secretary
January 18, 1978
R. MARVIN TOWNSEND
City Manager
• t •
This Official Notice of Sale does not alone constitute an offer to sell but is merely notice of sale
of the bonds described herein. The offer to sell such bonds is being made by means of this Official
Notice of Sale, the Official Bid Form and the Official Statement.
OFFICIAL NOTICE OF SALE
ed�it�.a�•�u.�. � � '±T.. �,{� ice.
J
+ ay
$11,000,000
CITY OF CORPUS CHRISTI
TEXAS
GENERAL IMPROVEMENT BONDS, Series 1978
Receiving Bids
Wednesday, February 15, 1978 until 11:00 A.M.
CST
•
ADOPTED AND APPROVED this the i;Mdn of February,
1978.
Mayor
City o Corp isti
ATTEST:
Cit Secretary
City of Corpus Christi
The foregoing resolution was approved prior to
adoption as to form and correctness this the � day of
February, 1978.
ty Attorney
City of Corpus
isti
TO THE MEMBERS OF THE CITY COUNCIL
Corpus Christi, Texas
Corpus Christi, Texas
o?� ay of . 19Z
For the reasons set forth in the emergency clause of the foregoing ordinance,
a public emergency and imperative necessity exist for the suspension of the
Charter rule or requirement that no ordinance or resolution shall be passed
finally on the date it is introduced, and that such ordinance or resolution
shall be read at three meetings of the City Council; I, therefore. request
that you suspend said Charter rule or requirement and pass this ordinance
finally on the date it is introduced, or at the present meeting of the City
Council.
Respectfully,
MA R
THE CITY 0 CORPUS TEXAS
The Charter Rule was suspended by the following vote:
Gabe Lozano, Sr. AIL
Bob Gulley ei
David Diaz
Ruth Gill
Joe Holt
Edward L. Samplee/
The above ordinance was passed by the following vote:
Gabe Lozano, Sr.
Bob Gulley
David Diaz lei
Ruth Gill Cum/
Joe Holt V 2i
Edward L. Sample
141A5
STATE OF TEXAS )X
CORPUS CHRISTI NATIONAL BANK:
COUNTY OF NUECES V
I, Gabe Lozano, Sr., do hereby swear that the signature
below is my usual signature.
GABE: L07A S
BEFORE ME, the undersigned authority, on this day personally
appeared Gabe Lozano, Sr., and who after being duly sworn by me
deposes and states that the foregoing facts are true and correct.
SWORN TO AND SUBSCRIBED before me, this Z?,b(d ay
1978.
N
NOTARY PUBL in and for
Nueces County, Texas
BEFORE ME, the undersigned authority, on this day personally
appeared Gabe Lozano, Sr., and who after being duly sworn by me
deposes and states that the foregoing facts are true and correct.
SWORN TO AND SUBSCRIBED before me, this7day of A, -,
1978.
BI L READ, City Secretary
City of Corpus Christi, Texas