HomeMy WebLinkAbout14823 ORD - 03/07/1979A:vp:2/28/79:1,';:
AN ORDINANCE
APPROVING ALL DOCUMENTS AND FISCAL ARRANGEMENTS
REQUIRED FOR THE PROPOSED SALE OF $13,000,000 OF
WATER SUPPLY REVENUE BONDS ON APRIL 3, 1979, BY THE
NUECES RIVER AUTHORITY, INCLUDING THE RESOLUTION,
OFFICIAL STATEMENT, NOTICE OF SALE AND BID FORM, AS
PROPOSED, SUBSTANTIAL COPIES OF WHICH ARE ATTACHED
HERETO AND MADE A PART HEREOF AS EXHIBIT A; AUTHOR-
IZING THE CITY MANAGER, DIRECTOR OF FINANCE, AND THE
CITY ATTORNEY TO REVIEW EACH OF SAID INSTRUMENTS
•UPON FINAL EXECUTION BY THE NUECES RIVER AUTHORITY;
AND DECLARING AN EMERGENCY.
WHEREAS, under date of May 27, 1976, as authorized by Ordinance
No. 13183, the City of Corpus Christi entered into a contract with Nueces
River Authority concerning construction of Nueces River Reclamation Project,
Texas (Choke Canyon Reservoir Project); and
WHEREAS, under the terms of said agreement the Authority and the
City have joint control of all fiscal arrangements in connection with the sale
of revenue bonds for the project, including interest rates and maturities and
said agreement requires that each resolution authorizing such revenue bonds shall
be approved by the City; and
WHEREAS, the Nueces River Authority proposes to sell $13,000,000
of water supply revenue bonds on April 3, 1979:
NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF
CORPUS CHRISTI, TEXAS:
SECTION 1. That the form of the bond resolution, official state-
ment, notice of sale and bid form, as proposed, substantial copies of which
are attached hereto and made a part hereof as Exhibit A are hereby approved
and that each of said instruments, bond resolution, official statement, notice
of sale, and bid form as executed and finally approved by the Nueces River
Authority, together with interest rate bid and all other aspects of the final
sale, shall be considered approved by the City Council of the City of Corpus
Christi upon formal review by the Director of Finance, City Manager, and
City Attorney for the City of Corpus Christi, Texas, and a determination by
them that the final forms of said instruments comply with the aforesaid
contract and any supplements thereto and applicable State law. A certified
copy of each of said instruments as finally approved by the Nueces River
Authority and reviewed by each of said officials on behalf of the City shall
be attached to this ordinance and made a part hereof. MICROFILMED
-JUL 0 81980
14823
SECTION 2. That the necessity to have the approval of all
documents and fiscal arrangements required for the proposed sale of water
supply revenue bonds by the Nueces River Authority as outlined above and
also authorizing the review of said instruments, all as more fully set out
above creates a public emergency and an imperative public necessity requir-
ing the suspension of the Charter rule that no ordinance or resolution shall
be passed finally on the date of its introduction but that such ordinance or
resolution shall be read at three several meetings of the City Council, and
the Mayor having declared such emergency and necessity to exist, and having
requested the suspension of the Charter rule and that this ordinance be passed
finally on the date of its introduction and take effect and be in full force and
effect from and after passage, IT IS ACCORDINGLY SO ORDAINED, this the
7 day of Febouaxy, 1979.
ATTEST:
Cif
Secretary�/
APPR VED:
,� ' DAY OF FEBRUARY, 1979:
J. BRUCE AYCOCK, CITY ATTORNEY
MAYO
THE CITY OF CORP CHRISTI, TEXAS
,EXHIBIT A
STATE OF TEXAS
NUECES RIVER AUTHORITY
WHEREAS, under authority of Article XVI, Section 59
of the Texas Constitution, the Nueces River Authority was
created as a conservation and reclamation district, a govern-
mental agency, body politic and corporate, by Acts 1935, 44th
Legislature, First Called Session, Chapter 427, as last amended
by Acts 1975,.64th Legislature, Chapter 699 (the latter being
herein. referred to as the "Act"); and
WHEREAS, pursuant to the Act, Nueces River Authority
(herein defined as the "Authority") has and may exercise
authority and power over the storm water and flood water of
the Nueces River Basin in Texas; and the Authority is empowered
to exercise such control and employment of such water in a
manner inter alfa to provide for the conservation of water
essential for domestic and other water uses of the people of the
Nueces River Basin, including all necessary water supplies for
cities, towns, and industrial districts and may use, dis-
tribute and sell the water for any beneficial purpose inside
or outside the Authority; and
WHEREAS, pursuant to the -authority granted in the Act,
the Authority 'has entered into a contract by and among the
United States of America, the City of Corpus Christi, Texas
(herein defined as the "City"), and the Authority, dated June
30, 1976 (herein defined as the "Federal Contract"), providing
for the construction and operation and maintenance of the
Nueces River Reclamation Project, Texas authorized by the
Reclamation Development Act of 1974 approved October 27,
1974 (Public Law 93-493), such project being also known as
the Choke Canyon Reservoir Project (herein defined as the
"Project"); and
WHEREAS, under the terms of the Federal Contract, the
Authority and the City and the United States are obligated to
provide, within the limitations therein contained, monies for
the construction of the Project including acquisition of land
therefor; and
WHEREAS, pursuant to the Federal Contract, the
Authority and the City agree to advance to the United States
part of the monies for such purposes; and
WHEREAS, pursuant to a contractrby•and between the
Authority and the City dated the 27th day of May, 1976
(herein defined as the "Contract"), the Authority and
the City have delineated their respective responsibilities
under the Federal Contract and have established their rights
in the use of water available from the Project, and have
resolved other matters germane to the Project as the same
affects the relationship between the Authority and the City;
and
WHEREAS, pursuant to the Contract the Authority
has agreed to issue revenue bonds to make the advance
payments to the United States which City does not provide
from other sources; and
are
WHEREAS, pursuant
to
to be secured by a pledge
ority by the City pursuant to
are to be made from the
system, as an operating
WHEREAS, it is
the Contract such revenue bonds
of the payments made to the Auth-
the Contract and such payments
revenues of the City's waterworks
expense of such system; and
the d"esire of the Authority to issue
revenue bonds in the aggregate principal amount of $13,000,000
to be so secured, all in accordance with the terms of the
Federal Contract and the Contract; and
WHEREAS, pursuant to the Federal Contract, upon sub-
stantial completion of the Project or as otherwise determined
by the designated representative of the United States, the
care, operation, maintenance and replacement of any or all of
the Project shall be transferred to the Authority and the
City; and
WHEREAS, the Authority and the City have agreed in
the Federal Contract to care for, operate, and maintain the
Project in full compliance with the terms of the Federal Con-
tract without expenseto the United States and in such manner.
that the Project will remain in good and efficient condition;
and
WHEREAS, in accordance with.the terms of the Contract
the City has assumed responsibility for the care, operation
and maintenance of the Project unless such responsibility is
transferred to the Authority by amendment to the Contract, and
that such care, operation and maintenance of the Project shall
be carried out in compliance with the applicable requirements
of the United States and the Texas Water Commission and in com-
pliance with the requirements of the Federal Contract and the
Contract;
NOW, THEREFORE, BE IT RESOLVED BY THE BOARD OF
DIRECTORS OF NUECES RIVER AUTHORITY:
ARTICLE I
DEFINITIONS
Section 1.1. The terms defined in this section
for all purposes of this Resolution, except where the
context by clear implication shall otherwise require, shall
have the respective meanings as follows, to -wit:
"Additional Bonds" - Bonds issued on a parity with'
the Series 1979 Bonds pursuant to the terms of this Resolution.
"Authority" - Nueces River Authority and any other
public body or agency at any time succeeding to the property
rights, powers and obligations thereof.
3
"Board" or "Board of Directors" - the duly appointed
and acting Board of Directors of the Authority.
"Bond" or "Bonds" - One or more of the Series 1979
Bonds and the Additional Bonds, as the case may be, authorized
by the Resolution.
"City" - The City of Corpus Christi, Texas.
"City Manager" - The duly appointed and acting City
Manager of the City.
."Construction Fund" - The..fund'by.that name created
by Section 6.1.
"Consulting Engineers" - The independent engineer
or engineering firm or corporation employed by the Authority
in accordance with Article VII..,
"Contract" - The contract between the Authority and
the City dated the 27th day of May, 1976, as heretofore or
hereafter supplemented or amended.
"Contract Payment Fund" - Nueces River Authority
Contract Payments for Debt Service Fund created by Section
5.2.
"Contract Payments For Debt Service" - The payments
made by the City to the Authority pursuant to the Contract as
are necessary to pay the principal and/or interest on the
Bonds, to make deposits in the Reserve Fund or other Funds as
may be required by the Bond Resolution.
"Costs of the Project" - Payments to be made by
the Authority as advances to the United States pursuant to
the Federal Contract.
"Executive Director" - The duly appointed and acting
Executive Director of the Authority.
"Federal Contract" - The contract by and among the
United States of America, the City and the Authority, dated
June 30, 1976, providing for the construction, operation and
maintenance of the Project and entitled "Contract Among the
United States of America, City of Corpus Christi, Texas; and
the Nueces River Authority, Nueces River Reclamation Project,
Texas".
"Financial Advisor" - M. E. Allison & Co., Inc., /
San Antonio, Texas, or its successor.
"Fiscal Year" - The twelve month period beginning
September 1 of each calendar year.
"Interest and Sinking Fund" - Nueces River Authority
Water Supply Revenue Bonds Interest and Sinking Fund created
by Section 5.2.
"Investment Securities" — Direct obligations of,
or obligations the principal of and the interest on which are
unconditionally guaranteed by, the United States Government,
Federal Intermediate Credit Banks, Federal Land Banks, Federal
National.\Mortgage Association, Federal Home Loan Banks or
Banks for Cooperatives.
"Paying -Agent", "Paying Agents" - As the case may
be, Corpus Christi National Bank, Corpus Christi, Texas,
and/or Mercantile National Bank at Dallas, Dallas, Texas, or
their successors.
"Project" - All features comprising the Nueces
River Reclamation Project, Texas, authorized by the Act of
Congress approved October 27, 1974 (Public Law 93-493), and
constructed or provided under the terms of the Federal Con-
tract; also known as the Choke Canyon Reservoir Project.
"Reserve Fund" - Nueces River Authority Water
Supply Revenue Bonds Reserve Fund created by Section 5.2.
"Resolution" - This resolution, as from time to time
may be amended.
"Series 1979 Bonds" - Nueces River Authority Water
Supply Revenue Bonds, Series 1979 (City of Corpus Christi
Project) authorized by this Resolution.
"Trustee" - Corpus Christi National Bank, Corpus
Christi, Texas, a national banking association organized and
existing under the laws of the United States, with its
principal office in Corpus Christi, Texas, or its successor.
"United States" - The United States of America.
Section 1.2. This Resolution, except where the
context by clear implication shall otherwise require, shall
be construed and applied in a manner that the singular and
plural both include the other, and pronouns include both
singular and plural and include all genders.
ARTICLE TWO
GENERAL TERMS AND PROVISIONS OF THE BONDS
Section 2.1. The principal of and interest on the
Bonds shall be payable to bearer, in lawful money of the United
States of America, without exchange or collection charges to
the bearer, upon presentation and surrender of proper bond or
interest coupon, at Corpus Christi National Bank, Corpus
Christi, Texas, or, at the option of the holder, at the Mer-
cantile National Bank at Dallas, Dallas, Texas. The Bonds
shall be special obligations of the Authority and the principal
thereof, premium, if__any, and theinterestthereon shall be
secured by a first lien on and shall be payable only out of the
revenues herein pledged.
Section 2.2. The Bonds shall be on a parity without
priority as to the security of any Bond over any other Bond by
reason of series, date of issue, date of maturity, date of
delivery or any other characteristic whatsoever.
Section 2.3. In case any person who shall have signed
or signed and sealed any Bond as an officer of the Authority
shall have ceased to be such officer before the Bond so signed or
signed and sealed shall have been actually delivered, such
Bond, nevertheless, may be delivered and issued as though the
person who signed or signed and sealed such Bond had not ceased
to be such officer of the Authority. Any Bonds issuable here-
under may be signed and sealed on behalf of the Authority by
such persons as at the actual date of the execution of such
Bonds shall be proper. officers of the Authority although at the
date of such Bonds any such person shall not have been an offi-
cer of the Authority. The Bonds and the coupons to be attached
to the Bonds shall be executed by the.fadsimile signatures of
the President and the Secretary of the Authority, and the
Authority may adopt or use for that purpose the facsimile sig-
nature of any persons who shall have been such officers not-
withstanding the fact that they may have ceased to be such -
officers at the time when such Bonds are actually authenticated
and delivered. The official seal of said Authority shall be
impressed, or printed, or lithographed on each of the Bonds.
Section 2.4. The form of said Bonds, including
the form of Registration Certificate of the'Comptroiler of
Public Accounts of the State of Texas to be printed and en-
dorsed on each Bond, and the form of the interest coupons to
be attached to said Bonds, shall be, respectively, substantially
as follows:
NO.
(FORM OF BOND)
UNITED STATES OF AMERICA
STATE OF TEXAS
NUECES RIVER AUTHORITY
WATER SUPPLY REVENUE BOND
SERIES
(CITY OF CORPUS CHRISTI PROJECT)
$5,000
Nueces River Authority (herein called the "Authority")
for value received, hereby promises to pay to bearer on the
1st day of April, -the--principal sum of
FIVE THOUSAND DOLLARS
and to pay interest thereon from the date hereof at the rate
of % per annum, evidenced by interest coupons payable
1, , and semiannually thereafter on each 1
and 1, until such principal sum shall be so paid or
duly provided for, upon the presentation and surrender of the
interest coupons hereto appertaining as they severally become
due. Both the principal of and the interest on this bond shall
be payable in lawful money of the United States of America,
without exchange or collection charges, at Corpus Christi
National Bank, Corpus Christi, Texas, or, at the option of the
holder, at the Mercantile National Bank at Dallas, Dallas,
Texas.
This bond is one of a series of bonds of like tenor
and effect, except as to number, interest rate, maturity date
and option of redemption, numbered consecutively from 1 through
, of the denomination of $5,000 each, aggregating
$ , issued by said Authority pursuant to Acts 1975,
64th Legislature, Chapter 699, for the purpose of providing
part of the funds to construct the Nueces River Reclamation
Project, Texas, also known as the Choke Canyon Reservoir Project.
Said bonds have been issued pursuant to a resolution adopted
by the Board of Directors of said Authority, which resolution
is duly of record in the minutes of said Board of Directors.
(CLAUSES AS TO REDEMPTION)
At least thirty days before the date fixed for any
such redemption, the Authority shall cause a written notice
of such redemption to be published at least once in a financial
publication published in the City of New York, New York. By
the date fixed for any such redemption, due provision shall be
made with the places of payment for the payment of the principal
amount of the bonds to be so redeemed, plus accrued interest
thereon to date fixed for redemption. If the written notice
of redemption is published, and if due provision for such
payment is made, all as provided above, the bonds which are
to be so redeemed, thereby automatically shall be redeemed
prior to maturity; they shall not bear interest after the date
fixed for redemption, and shall not be regarded as being out-
standing except for the purpose of receiving the funds so
provided for such payment.
The date of this bond, in conformity with the resolu-
tion above mentioned, is the 1st day of
It is hereby certified, recited and declared that
said Authority is a duly organized and legally existing
conservation and reclamation district under the Constitution
and laws of the State__of Texas; that the issuance of this
bond and the series of which it is a part has been in all things
authorized in accordance with the requirements of law; that
all acts, conditions and things required to exist precedent to
and in the issuing of this bond to render the same lawful and
valid have been properly done, have happened and been performed
in regular and due time, form and manner as required by the
Constitution and laws of the State of Texas; that the interest
on and principal of this bond, and, the series of which it is a
•
part, together with other parity bonds outstanding, are secured
by and payable from a first lien on and pledge of certain pay-
ments to be made by the City of Corpus Christi, Texas to the
Authority pursuant to a contract dated the 27th day of May,
1976, as supplemented and amended.
The Resolution provides for amendment of the Resolu-
tion by the Authority under certain conditions, and under
other conditions with the consent of the holders of at Least
three-fourths in principal amount of the outstanding bonds; -
provided, that without the consent of the holders of all of
the outstanding bonds, no amendment shall:
(a) make any change in the maturity of the out-
standing bonds or additional bonds;
(b) reduce the rate of interest borne by any
of the outstanding bonds or additional bonds;
(c) reduce the amount of the principal payable
on the outstanding bonds or additional bonds;
(d) modify the terms of payment of principal of
or interest on the outstanding bonds or additional bonds
or any of them, or impose any conditions with respect
to -such -payment;
(e) affect the rights of the holders of less than
all of the bonds and additional bonds then outstanding;
or
(f) change the minimum percentage of the principal
amount of bonds necessary for consent to such amendment.
The Authority reserves the right to issue additional
parity bonds under the terms and conditions stated in said
resolution and said bonds may be made payable from the same
source, secured in the same manner and placed on a parity with
this bond.
•
In witness whereof, the Board of Directors of Nueces
River Authority has caused the seal of said Authority to be
duly impressed, or printed, or lithographed hereon and has
caused this bond and the interest coupons attached hereto to
be signed by the imprinted or lithographed facsimile signature
of the President of said Board and countersigned by the
imprinted or lithographed facsimile signature of its Secretary.
President, Board of Directors,
Nueces River Authority
ATTEST:
Secretary, Board of Directors,
Nueces River Authority
(FORM OF COMPTROLLER'S REGISTRATION CERTIFICATE)
OFFICE OF COMPTROLLER
REGISTRATION NO.
STATE OF TEXAS
I hereby certify that there is on file and of record
in my office a certificate of the Attorney General of the State
of Texas, to the effect that this bond has been examined by him
as required by law, and that he finds that it has been issued in
conformity with the Constitution and laws of the State of Texas,
and that it is a valid and binding special obligation of said
Nueces-River-Authority, payable from the revenues pledged to its
payment and said bond has this day been registered by me.
Witness my hand and seal of office at Austin, Texas
Comptroller of Public Accounts or
the State of Texas
(SEAL)
(FORM OF INTEREST COUPON)
NO. $
ON THE 1ST DAY OF
Nueces River Authority will pay to bearer, out of
the revenues specified in the bond to which this coupon is
attached (unless said bond shall have been previously called
for redemption and provision for the redemption thereof made
in accordance with its terms), at Corpus Christi National Bank,
Corpus Christi, Texas, or at the option of the holder, at
Mercantile National Bank at Dallas, Dallas, Texas, without
exchange or collection charges to the holder hereof, the sum
shown on this interest coupon, in lawful money of the United
States of America, for interest then due on its Nueces River
Authority Water Supply Revenue Bond, Series (City of
Corpus Christi Project), dated 1, " ; numbered
Secretary President ..
Section 2.5. Before the initial delivery of any
series of Bonds, there shall be endorsed on each of said Bonds
a certificate of registration duly executed by or on behalf of
the Comptroller of Public Accounts of the State of Texas.
Section 2.6. All Bonds and coupons shall pass by
delivery merely, and shall be negotiable instruments under the
Uniform Commercial Code.
ARTICLE THREE
AUTHORIZATION AND ISSUANCE OF BONDS
Section 3.1. The Bonds of Nueces River;Authority
to be entitled- "Nueces-River-Authority Water Supply Revenue
Bonds, Series 1979 (City of Corpus Christi Project) (the
"Series 1979 Bonds")" be issued in the aggregate principal
amount of $13,000,000 in accordance with the, provisions
of the Constitution and Statutes of the State of Texas,
including Article 16, Section 59 of the Texas Constitution,
and Acts 1975, 64th Legislature, Chapter 699, for the purpose
of providing part of the funds to construct a reservoir and
related facilities for conserving, transporting and distribu-
ting water.
Section 3.2. The Series 1979 Bonds shall be dated
April 1, 1979, shall be numbered consecutively from 1 through
2600, shall be in the denomination of $5,000 each, and shall
mature and become due and payable serially on April 1 in each
of the years, and amounts as follows:
YEARS AMOUNTS YEARS - AMOUNTS •
1981 $ 100,000 1996 450,000
1982 100,000 1997 450,000
1983 100,000 1998 500,000
1984 150,000 1999 500,000
1985 200,000 2000 550.000'
1986 200,000 2001 600,000
1987 250,000 2002 650,000
1988 250,000 2003 650,000
1989 250,000 2004 700,000
1990 300,000 2005 750,000
1991. 300,000 2006 800,000
1992 - 350,000 2007 850,000
1993 350,000 2008 900,000
1994 400,000 2009 950,000
1995 400,000
Section 3.3. The Series 1979 Bonds scheduled to
mature during the years,. respectively, set forth.below shall
bear interest at the following rates per annum:
maturities 1981 through ,
maturities • through -A
maturities through ,
maturities through $
maturities through
maturities through ,. g
maturities through
maturities through ,
maturities through ,.
maturities through g
maturities through W
maturities through
Said interest shall be evidenced by interest coupons which
shall appertain to said -bonds, and which shall be payable on
October 1, 1979 and semiannually thereafter on April 1 and
October 1 until paid.
Section 3.4. One or more series of Bonds, on a parity
with and in addition to the Series 1979 Bonds, may be authentica-
ted -and
uthentica-ted-and delivered for the purpose of providing additional funds
to complete the payment of the Costs of the Project. After the
13
•
•
original authentication and delivery of the aggregate author-
ized principal amount of Bonds of any such sr,ies no additional
Bonds shall be authenticated and delivered under such series
designation. Bonds of each series issued pursuant to this
Section shall be authorized by a resolution or resolutions of
the Board of Directors, which shall specify:
(1) The authorized principal amount of such series,
the designation thereof, and the directions for delivery of
the Bonds to or upon the order of the purchasers therein
named upon payment of the purchase price therein set
forth;
(2) The purpose for which such series of Bonds
is being issued;
(3) The date of such series and maturity dates of
the Bonds thereof, provided that every maturity date
shall fall on April 1;
(4) The interest rate or rates of such Bonds, and
the interest payment dates therefor, provided that the
interest rate shall be identical for all Bonds of like
maturity and the interest payment dates shall be semi-
annual and shall be identical for all Bonds of a series;
(5) The redemption terms, if any, for such Bonds;
and
(6) Any other matters deemed appropriate or neces-
sary and notinconsistent with the provisions of this
Resolution.
Such Bonds may be authenticated, delivered and paid for from
time to time in installments of less than the aggregate
authorized principal amount of a series as the Authority may
direct.
In case any Bond shall be authenticated and delivered
upon ini-tial-- issue -subsequent to the maturity date of one or
more coupons appurtenant thereto, any such matured coupons
shall be cut off and cancelled prior to authentication and
delivery of the_Bond.
14
Section 3.5. If the Authority shall find it desir-
able to refund part of the outstanding Bonds, such Bonds may,
to the extent permitted by law, be refunded and the refunding
Bonds so issued may continue to enjoy in all respects the
lien and right to security under this Resolution enjoyed by
the Bonds refunded thereby.
ARTICLE FOUR
REDEMPTION OF BONDS
Section 4.1. Any redemption of all or any part of
the Bonds issued under the provisions of this Resolution or in
accordance therewith which are subject to redemption shall be
made in the manner provided in this Article.
Section 4.2. In case of the redemption of less than
all the Bonds outstanding, except as otherwise provided herein
or in the resolution or resolutions authorizing such Bonds,
the particular Bonds to be redeemed shall be selected from all
the outstanding Bonds by lot.
Section 4.3. All Series 1979 Bonds scheduled to mature
on and after April 1, 1990, shall be optional for redemption
prior to their scheduled maturities, in whole, or in part, at the
option of the Authority, on any interest payment date at re-
demption prices (expressed as a percentage of principal amount)
plus accrued interest to the redemption date as follows:
Redemption Date Redemption Price
April 1, 1989 and October 1, 1989 105%
April 1, 1990 and October 1, 1990 104-1/2%
April 1, 1991 and October 1, 1991 104%
April 1, 1992 and October 1, 1992 103-1/2%
April 1, 1993 and October 1, 1993 103%
April 1, 1994 and October 1, 1994 102-1/2%
April 1, 1995 and October 1, 1995 102%
April 1, 1996 and October 1, 1996 101-1/28
April 1, 1997 and October 1, 1997 101%
April 1, 1998 and October 1, 1998 100-1/2%
April 1, 1999 and on any interest
payment date thereafter 100%
15
At least thirty days before the data fixed for any
such redemption, the Authority shall cause a written notice of
such redemption to be published at least once in a financial
publication published in the City of New York, New York. By
the date fixed for any such redemption, due provision shall be
made with the places of payment for the payment of the principal
amount of the bonds to be so redeemed, plus accrued interest
thereon to date fixed for redemption. If the written notice
of redemption is published, and if due provision for such
payment is made, all as provided above, the bonds which are
to be so redeemed, thereby automatically shall be redeemed
prior to maturity; they shall not bear interest after the date
fixed for redemption, and shall not be regarded as being out-
standing except for the purpose of receiving the funds so
provided for such payment.
Section 4.4. Additional Bonds shall be subject to
redemption prior to their stated maturities'as may be pro-
vided in the resolution or resolutions authorizing their
issuance.
ARTICLE FIVE
PLEDGE AND FUNDS
Section -5.1. PLEDGE. The principal of and interest
on the Bonds shall be paid and secured by a first lien on and
pledge of the Contract Payments for Debt Service, and said
lien and pledge -are hereby irrevocably created, and the holders
of the Bonds shall never have the right to demand payment
thereof out of any other funds of the Authority.
Section 5.2. FUNDS. (a) The following special
funds of the Authority are hereby created with the Trustee,
to -wit:
(i) the "Nueces River Authority Contract
Payments for Debt Service Fund" (the
"Contract Payment Fund");
(ii) the "Nueces River Authority Water Supply
Revenue Bonds Interest and Sinking Fund
(the "Interest and Sinking Fund");
(iii) the "Nueces River Authority Water Supply
Revenue Bonds Reserve Fund" (the "Reserve
Fund").
(b) All moneys in said Funds are pledged to the
purposes expressed herein.
(c) All of said Funds created by this Section shall
be kept with the Trustee.
Section 5.3." CONTRACT PAYMENT FUND. All Contract
Payments for Debt Service shall be received by the Trustee and
shall be deposited by the Trustee as received into the Contract.
Payment Fund.
r
Section 5.4. FLOW OF FUNDS. Moneys on deposit in
the Contract Payment Fund shall be transferred by the Trustee
in the following sequence and order of priority and on the
following dates, to -wit:
(a) The Trustee shall transfer to the Interest
and Sinking Fund -
(i) beginning on or before September 25, 1979,
and on or before each March 25 and September 25 there-
after such amounts as will be sufficient, together
with other funds therein, to pay the interest on the
Bonds on the next succeeding interest payment date
thereof; and
(ii) beginning on or before September 25, 1980,
and on or before each March 25 and September 25 there-
after through March 25, 2009, one-half of such amounts
as will be sufficient, together with other funds
therein, to pay the principal of the Bonds maturing on
the next succeeding April 1.
(b) So long as the amount on deposit in the Reserve
Fund equals or exceeds a sum equal to the amount required to
pay the interest on and principal of the. Bonds outstanding
during the Fiscal Year such payments are the greatest, no
transfers into the Reserve Fund shall be required under this
paragraph (b). However, should the amount on deposit in said
Fund ever be less than a sum equal to the amount required to
pay the interest on and principal of the Bonds outstanding
during the Fiscal Year such payments are the greatest, the
Trustee shall replace any deficiency therein in not more
than ten (10) equalinstallments by making transfers in the
•
necessary amounts into said Fund from the Contract Payment
Fund on or before each March 25 and September :25 beginning
•
with the March 25 of the Fiscal Year following the Fiscal Year
in which the deficiency occurred. The Authority shall make
payments to the Trustee for the credit of the Contract Payment
Fund at the times and in the amounts to permit the timely
transfers required by this Section to be made from the Contract
Payment Fund to the Reserve Fund.
Section 5.5. USE OF INTEREST AND SINKING FUND.
Monies on deposit in the Interest and Sinking Fund each year
shall be used solely and exclusively first for the purpose of
paying the interest on and principal of the Bonds as such
interest comes due and the principal thereof matures; or for
the purpose of calling and redeeming Bonds prior to maturity
at the applicable redemption price and/or for the purpose of
purchasing Bonds in the open market for retirement for prices
not greater than the par value plus accrued interest of any
Bonds thus purchased or if redeemable prior to stated matur-
ity, not greater than the redemption price -on the next
succeeding redemption date. No purchases shall be made of
Bonds with monies__in the Interest and Sinking Fund which would
result in not having sufficient monies therein to pay Bonds
at their stated maturities. The Trustee timely shall make
available the funds on deposit therein to the Paying Agents
for such purposes. At such time as .the monies and investments
in the Interest and Sinking Fund and the Reserve Fund shall
equal the aggregate principal amount of the Bonds outstanding
and interest thereon to stated maturity dates of such Bonds,
or, if any of such Bonds shall be redeemable prior to stated
maturity, the interest thereon to such redemption dates and
any applicable premium, no further transfers shall be made to
the Interest and Sinking Fund.
Section 5.6. USE OF RESERVE FUND. For so long as
any of the Bonds shall be outstanding the Reserve Fund shall
be held as a reserve for the payment of principal of and
interest on the Bonds when and if monies on deposit in the
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• Interest and Sinking Fund shall not be sufficient for such •
purpose. If such deficiences occur, the Trustee shall
transfer money on deposit in the Reserve Fund to.the Interest
and Sinking Fund for the uses specified for that Fund. The
monies in the Reserve Fund shall be used to pay the last of
the Bonds outstanding.
Section 5.7. SECURITY AND INVESTMENT OF FUNDS. The
Trustee will secure and keep secured, in the manner required
by law, all cash funds on deposit with it, and will cause the
Paying Agents to secure all funds deposited with them as
other trust funds are secured. So long as the Trustee and the
Paying Agents are national banks; their compliance with Sec-
tion 9.10 of Regulation 9 of the Comptroller of the Currency
of the United States Treasury shall constitute compliance with
this Section. The Trustee shall invest the monies in the -
Interest and Sinking Fund, the Reserve Fund, and the Contract
Payment Fund fully and continuously in Investment Securities
or Certificates of Deposit of State and National Banks which
shall be lawfully insured or secured by Investment Securities,
all in accordance with resolutions from time to time adopted
by the Board, approved by the City and delivered to the
Trustee. Such .investments shall be converted to cash only
at the times monies are needed for payments required by this
Resolution. All interest and income on such investments as
realized shall be deposited into the Contract Payment Fund.
ARTICLE SIX
BOND PROCEEDS AND THE CONSTRUCTION FUND
Section 6.1. CONSTRUCTION FUND. A special fund is
hereby established with the Trustee to be entitled the "Con-
struction Fund".
Section 6.2. BOND PROCEEDS. The proceeds of the
Bonds shall be received by the Trustee, and shall be deposited
or paid out as follows: (1)_ to the credit of the Interest
and Sinking Fund, the interest accrued, if any, on the Bonds
to date of delivery to the purchasers thereof, (2) to the
Reserve Fund, an amount equal to the maximum amount to pay the
interest on and principal of all outstanding Bonds in any
Fiscal Year, (3) to the Authority for payment of the costs of
issuance of the Bonds, and (4) to the Construction Fund,
the balance.
Section 6.3. USE OF MONIES. (a) The Authority
shall apply monies in the Construction Fund to the Costs of
the Project. All payments from the Construction Fund shall be
subject to the provisions and restrictions set forth in this
Article, and the Trustee shall not cause or permit to be paid
from the Construction Fund any sums except in accordance with
such provisions and restrictions.
(b) The Trustee shall invest funds held in the
Construction Fund in Investment Securities unless otherwise
directed by the Board. Such obligations together with the
interest thereon, shall be held in and shall at all times be
a part of the Construction Fund. Any income derived from and -
any profit or loss on any such investment of monies on deposit
in the Construction Fund shall be credited or debited, as the
case may be, to the Construction Fund.
Section 6.4. PAYMENT ON BONDS. Notwithstanding any
other provisions of this Article,• to the extent that other
monies are not available therefor, amounts in the Construction
Fund shall be applied to the payment of principal and interest
on the Bonds when due.
Section 6.5. DISBURSEMENTS FROM CONSTRUCTION FUND.
Before any monies shall be withdrawn or any payments shall be
made from the Construction Fund there shall be filed with
and approved by the Trustee --
(a) A voucher which may contain any number of
items signed by the Executive Director and the City
Manager stating in respect of each item to be paid --
(1) the item number of the payment;
20
(2) the amount or amounts to -be paid; and
(3) the purpose for which the obligation is
to be paid; and
(b) A certificate signed by the Executive Director
and the City Manager and attached to the voucher certi-
fying that the obligations in the stated amounts are
advances due to the United States pursuant to the Federal
Contract and that each item thereof is a proper charge
against the Construction Fund and has not been paid.
If the Trustee shall determine that such -•voucher and certifi-
cate are in the form and contain the information required by
this Section, it shall be authorized to make payment
thereof.
Section 6.6. COMPLETION OF THE PROJECT. When the
Project shall have been completed in accordance with the
plans and specifications, and when all amounts due therefor shall
have been paid, the Executive Director and the City Manager
shall file with the Trustee a certificate so stating, and
thereupon the Trustee shall cause the transfer of all monies
remaining in the Construction Fund, if any, to the Interest
and Sinking Fund.
ARTICLE SEVEN
GENERAL COVENANTS
Section 7.1. (a) The Authority will keep or cause
to be kept proper books of record and account in which full,
true and correct entries will be made of all income, expenses
and transactions of and in relation to the Project and each
and every part thereof in accordance with accounting practices
recommended by the National Committee on Governmental Account-
ing and within ninety (4n) days after the close of each
Fiscal Year the Authority will furnish to the City, the
Municipal Advisory Council of Texas, the Financial Advisor,
and any holder of any Bonds who may so request a signed or
certified copy of a report by a Certified Public Accountant
covering the preceding Fiscal Year.
(b) The holder or holders of any Bonds or any duly
authorized agent or agents of such holders, shall have the
right at all reasonable times to inspect all such records,
accounts and data relating to the Authority and the Project,
and to inspect the Project and all properties comprising same.
Section 7.2. To the end that the Contract Payments
for Debt Service will be made in accordance with the Contract
and the same will be sufficient to pay the Bonds and the interest
thereon as they become due, the Authority will comply with the
terms of the Contract and keep the same in effect, and will
enforce the terms of the Contract. The Authority will not con-
sent to any amendment to the Contract which would extend the
time of the payment of any amounts due thereunder or which would
in any manner. impair or adversely affect the rights of the
holders of the Bonds from time to time.
Section 7.3. To the end that the Project will be
completed, properly maintained and the rights of the Authority
and the holders of the Bonds will be preserved and protected,
the Authority will comply with the terms of the Federal Con-
tract and will enforce the terms of the- Federal Contract.
Section 7.4. The Authority represents that
it is a conservation and reclamation district, and a
governmental agency and body politic and cdrporate, duly
created, organized and existing under the Constitution and laws
of the State of Texas and has proper authority from all other
public bodies and authorities, if any, having jurisdiction
thereof to construct, acquire, operate, maintain, repair, re-
new and replace the Project or any interest therein. The
Authoritywillat all times maintain its corporate existence
and maintain a lawful Board of Directors, and at all times
function and act in the best interest of the Project and the
bondholders. The Authority hereby further covenants that it has
the lawful power to pledge the revenues supporting the Bonds;
that all corporate action on its part to that end has been duly
and validly taken; and that the Bonds issued hereunder shall be
ratably secured under said pledge in such manner that one Bond
shall have no preference over any other Bond of said issue.
Section 7.5. The Authority covenants that in
no event while any of the Bonds or interest thereon remains
outstanding and unpaid, shall the Authority sell, mortgage,
lease or otherwise dispose of its interest in the Project, or
any substantial part thereof, nor shall the Authority -further
encumber the Contract Payments for Debt Service in any manner
except in accordance with this Resolution, or unless such encum-
brance shall be made junior and subordinate in all respects to
the lien and pledge herein created for the benefit of the
Bonds and the interest thereon.
Section 7.6. (a) The Authority will, or will cause
the City at all times to keep insured with a responsible insur-
ance company or companies, such of the plants, structures,
buildings, stations, machinery and equipment of the Project
against risk of accidents or casualties against which insurance
is usually carried by similar governmental entities operating
like.properties,,to maintain insurance against public-
liabil-ity and property damage in a reasonable amount, provided such
insurance can-be=procured at reasonable cost, and to maintain
workmen's compensation insurance with a responsible insurance
company or companies or a State -approved workmen's compensation
plan or program. However, at any time while any contractor en-
gaged in the construction shall be fully responsible therefor,
the Authority shall not be required tocarry or cause to be
carried -any -of the foregoing insurance.
(b) In the event of any loss or damage and proceeds
from such insurance policies are available the Authority will
apply or cause to be applied proceeds of insurance policies
covering such loss or damage solely for that purpose. The
Authority will use its best efforts to have the work of recon-
struction or repair begun promptly after such loss or damage
shall occur and have same continued and properly completed as
expeditiously as possible. If engineering assistance is not
available from the United States, the Authority will procure
or cause to be procured the advice and recommendation in
writing of Consulting Engineers concerning such reconstruction
before it is undertaken.
(c) Any amounts remaining after the completion of
and payment for any such reconstruction or. repair shall be
deposited to the credit of the Contract Payment Fund.
Section 7.7. The Authority recognizes that the
Federal Contract provides that a representative of the United
States with a representative of the Authority and the City
may, from time to time, review the maintenance of the Project
being operated by the Authority and the City to determine the
condition of the Project and adequacy of the maintenance program.
A report of the review including recommendations, if any, will
be prepared by the United States and copies:will be furnished
to the Authority and the City. If deemed necessary by the
United States or the Authority and the City, special inspec-
tions of the Project and the books and records being main-
tained will be made by the United States to ascertain,
in the event of any operation and maintenance deficiency
remedial measures required for correction to assist the
21
Authority and City in solving specific problems'. Any such
inspection or audit shall, except in the case of emergency,
be made in written notice to the Authority and the City, and
the-actual cost thereof shall be paid by the Authority and
the City to the United States. Should this arrangement for.
reviews and inspections be terminated for any reason, while
any of the Bonds is outstanding, the Authority will employ
or cause to be employed, a Consulting Engineer to give all
necessary or desirable advice and recommendations to the
end that the Project shall be operated and maintained in the
most efficient and satisfactory manner. Further, the Auth-
ority shall cause the Consulting Engineer to make in writing
a review and report on the physical condition of the Project
works once every three years, including their recommendations
as to (1) the proper maintenance, repair and operation of the
Project, `including their findings as to whether or not pro-
perties have been maintained in good repair and sound operating
condition; and (2) the improvements, renewals and replacements
which should be made. A copy of such report and review shall
be filed with City and the Authority.
Section 7.8. No provision contained in this
Resolution shall in any way affect the statutory right of the
Authority to issue bonds except bonds on a parity with the
Bonds which shall be issued in accordance with this Resolution.
ARTICLE EIGHT
TRUSTEE
Section 8.01. By the execution of the Acceptance
Clause at the end hereof, the Trustee does hereby accept the
trust hereby imposed and agrees to comply with the terms thereof.
Section 8.02. The Trustee shall not be liable for any
act done or--step-taken or omitted by it, including losses in-
curred in buying and selling investments, or any mistake of fact
or law or for anything which it may do or refrain from doing, ex-
cept for its negligence and/or its willful misconduct in the
25
•1111
performance of any obligation imposed upon it hereunder. The
Trustee shall not be responsible in any manner whatsoever for
the recitals or statements contained in the Bonds or any pro-
ceedings taken in connection therewith or statements of the
Authority contained in this Resolution.
Section 8.03. The Trustee shall have no responsibility
to any persons in connection herewith except those specifically
provided herein and shall not be responsible for anything done
or omitted to be done by it except for its own negligence and/
or willful misconduct. The Authority covenants that it will
not commence any action against the --Trustee, in equity or
otherwise as a result of any action taken or thing done by the "
Trustee pursuant to this Resolution or pursuant to any written
demand or authorization for which provision is herein made.
Section 8.04. The Trustee, except as heretofore indi-
cated, is not a party to any other agreement or undertaking be-
tween the Authority and the Trustee nor is it bound by nor need
it give consideration to the terms or provisions of any agree-
ment or undertaking between the Authority and other persons,
and the Trustee assents to and is to give consideration only
to the terms and provisions of this Resolution. Unless it is
specifically provided, Trustee has no duty to determine or
inquire into the happening or occurrence of any event or con-
tingency or the performance or failure of performance of the
Authority with respect to arrangements or contracts with others,
the Trustee's sole duty hereunder being to deposit monies and
to dispose of and deliver the same in accordance with instruc-
tions herein.
Section 8.05. if, however, the Trustee be called upon
by the terms of this Resolution to determine the occurrence of
any event or contingency, Trustee shall be obligated, in making
such determination, -only toexercisereasonable care and dili-
gence, and in event of error in making such determination Trustee
26
shall be liable only for its own willful misconduct and/or
its negligence in the light of all the circumstances, taking
into consideration the time and facilities available to Trustee
in the ordinary conduct of its business. In determining the
occurrence of any such event or contingency Trustee may request
from the Authority or any other person such reasonable addi-
tional evidence as Trustee in its discretion may deem necessary
to determine any fact relating to the occurrence of such event
or contingency, and in this connection may inquire and consult,
among others, with the Authority at any time and Trustee
shall not be liable for any damages resulting from it5'delay
in acting hereunder pending its examination of the additional
evidence requested by it.
Section 8.06. The Trustee is authorized by the Auth-
ority to rely upon the representations, both actual and implied,
of the Authority and all other persons connected with this
Resolution and the deposited property as to authority to execute
this Resolution, notifications, receipts or instructions here-
under, and relationships among persons, including persons auth-
orized to receive delivery hereunder, and Trustee shall not be
liable to any person in any manner for such reliance.
Section 8.07. The Trustee may act upon any written
notice, request, waiver, consent, certificate, receipt, author-
ization, power of attorney, or other instrument or document
which Trustee in good faith believes to be genuine and to be
what it purports to be.
Section 8.08. The Trustee or any company of which
it is a subsidiary or in which it may be interested, or any
officer, stockholder or director of the Trustee or of any such
company, in its or his individual or fiduciary capacity, may
acquire,.. hold-or dispose of Bonds or coupons, or may engage
in or be interested in- any financial or other transaction with
the City or the Authority or any corporation in which the City
or the Authority may be interested, and the Trustee may act as
27
depositary, trustee or agent for the City or the• Authority or
for any committee or body of holders of Bonds, whether or not
secured hereby, all with the same rights as though the Trustee
were not Trustee hereunder.
Section 8.09. Nothing in this Resolution shall re-
quire the Trustee to expend or risk its own funds or incur
financial liability in the performance or exercise of any of
its rights, powers or duties if it does not have reasonable
grounds to believe that the funds will be,repaid or that it
will be adequately indemnified as to risk and liability.
Section 8.10. (a) The Trustee and any successor
hereafter appointed may at any time resign from the trust hereby
created by giving 90 days' written notice to the Authority and
such resignation shall take effect at the end of such 90 days
or upon the earlier appointment of a successor Trustee by the
bondholders or by the Authority. Such notice may be served
personally or sent by registered mail.
(b) The Trustee at any time acting hereunder may
be removed at any time by an instrument or concurrent instru-
ments in writing delivered to the Trustee and to the Authority
and the City or instruments or concurrent instruments in
writing delivered by the Authority and the City to the Trustee
and signed by the holders of a majority in amount of the Bonds.
(c) In case the Trustee hereunder shall resign or
be removed, or be dissolved, or shall be in,course of dissolu-
tion or liquidation or otherwise become incapable of acting
hereunder, or in case the Trustee shall be taken under control
of any public officer or officers or of a receiver appointed by
a court, a successor may be appointed by the holders of a
majority in principal amount of the Bonds hereby secured and
then outstanding, by an instrument or concurrent instruments
in writing signed by such holders, or by their attorneys in
fact, duly authorized; provided, nevertheless, that in case of
such vacancy the Authority by an instrument executed by resol-
ution of the Board, and signed by its President, and attested
2R
by its Secretary under its corporate seal, may appoint a tem-
porary Trustee to fill such vacancy until a successor shall be
appointed by the bondholders in the manner above provided; and
any such temporary Trustee so appointed by the Authority shall
immediately and without further act be superseded by the Trus-
tee so appointed by such bondholders. Every such temporary
Trustee so appointed by the Authority shall be a trust company
or bank or bank and trust company located in a Federal Reserve
..r
City in the State of Texas, in good standing, having a cumula-
tive capital, surplus and undivided profits and reserves of not
less than twenty-five million dollars ($25,000,000), if there
be such an institution willing, qualified and able to accept
the trust upon reasonable or customary terms.
Section 8.11. The Authority will pay or cause to
be paid to the Trustee its reasonable fees for its services as
Trustee and for services of both Paying Agents. Amounts due
the Paying Agents shall be allocated and forwarded to the
Paying Agents by the Trustee,
Section 8.12. Any notice, authorization, request or
demand required or permitted to be given hereunder shall be in
writing and shall be deemed to have been duly given when mailed
by registered or certified mail, postage prepaid addressed as
follows:
Executive Director
Nueces River Authority
P. 0. Box 349
Uvalde, Texas 78801
City Manager
City of Corpus Christi
P. 0. Box 9277
Corpus Christi, Texas 78408
29
Corpus Christi National Bank
P. O. Box 301
Corpus Christi, Texas 78403
The United States Post Office registered or certified mail
receipt showing delivery of the aforesaid shall be conclusive
evidence of the date and fact of delivery.
Either party may change the address to which
notices are to be delivered by giving to the other party not
less than ten (10) days prior notice thereof.
Section 8.13. Upon the taking of all the actions as
described herein by Trustee the Trustee shall have no further
obligations or responsibilities to any of the parties hereto or
to any other person or persons in connection with this Resolu-
tion.
ARTICLE NINE
DEFEASANCE
Section 9.1. Any Bond shall be deemed to be paid
and no longer outstanding when payment of the principal of,
redemption premium, if any, on such Bond, plus interest thereon
to the due date thereof (whether such due date be by reason of
maturity, upon redemption, or otherwise), either (a) shall have
been made or caused to be made in accordance with the terms
thereof, or (b) shall have been provided by irrevocably deposit-
ing with a Paying Agent, in trust and irrevocably set aside
exclusively for such payment (1) money sufficient to make such
payment or (2) Federal Securities, as defined hereinafter in
this Article, certified by an independent public accounting
firm of national reputation to mature as to principal and in-
terest in such amount and at such times as will insure the
availability without reinvestment, of sufficient money to make
such payment, and all necessary and proper fees, compensation„
and expenses of the Paying Agents for the Bonds pertaining to
30
the Bond with respect to which such deposit is made shall have
been paid or the payment thereof provided for. At such time as
a Bond shall be deemed to be paid hereunder, as aforesaid, it
shall no longer be secured by or entitled to the benefits of
this Resolution, except for the purposes of any such payment
from such money or Federal Securities.
Section 9.2. The deposit under clause (b) of Section
9.1 shall be deemed a payment of a Bond as aforesaid when proper
notice of redemption of such Bond shall have•been given, in
accordance with this Resolution. Any money so•deposited with a
Paying Agent as provided in this Article may at the direction
of the Authority also be invested in Federal Securities, matur-
ing in the amounts and times as hereinbefore set forth, and all
income from all Federal Securities in the hands of a Paying
Agent pursuant to this Article which is not required for the
payment of the Bond, the redemption premium, if any, and inter-
est thereon, with respect to which such money has been so
deposited, shall be turned over to the Authority.
Section 9.3. For the purpose of this Article, the
term "Federal Securities" shall mean direct obligations of the
United States of America, including obligations the principal
of and interest on which are unconditionally guaranteed by the
United States of America, and which are noncallable and which
at the time of investment are legal investments under the laws
of the State of Texas for the money proposed,to be invested
therein.
Section 9.4. Notwithstanding any provision of any
other Article of this Resolution which may be contrary to the
provisions of this Article, all money or Federal Securities
set aside and held in trust pursuant to the provisions of this
Article -for -the -payment of Bonds, the redemption premium, if
any, and interest thereon, shall be applied to and used solely
31
for the payment of the particular Bonds, the redemption premium,
if any, and interest thereon, with respect to which such money
or Federal Securities have been so set aside in trust.
Section 9.5. Notwithstanding anything elsewhere in
this Resolution contained, if money or Federal Securities have
been deposited or set aside with a Paving Agent pursuant to
this Article for the payment of Bonds and such Bonds shall not.
have in fact been actually paid in full, no amendment to the
provisions of this Article shall be made without the consent
of the owner of each Bond affected thereby.
ARTICLE TEN
MISCELLANEOUS
Section 10.1. Without any prior action by or notice
to the holders of the Bonds, Authority may, from time to time,
and at any time, amend this Resolution:
-,(1) to add to the covenants and undertakings of
the Authority contained in this Resolution such addi-
tional covenants and undertakings as may be authorized
or permitted by law; or
(2) to cure any ambiguity, defective or incon-
sistent provisions of this Resolution and to accomplish
any other purposes not inconsistent with the provisions
of this Resolution and which shall not impair. the
security afforded hereby.
Section 10.2. (a) The holders of Bonds aggre-
gating in principal amount of three-fourths of the aggregate
principal amount of Bonds and Additional Bonds at the time
outstanding (not including in any case any such bonds which
may then be held or owned by or for the account of the Auth-
ority) shall have the right from time to time to approve an
amendment__ of_ this -Resolution which may be deemed necessary or
desirable by the Authority, provided, however, that without
32
the consent of the holders of all of the outstanding Bonds,
nothing herein contained shall permit or be construed to.
permit the amendment of the terms and conditions contained in
this Resolution or in the Bonds so as to:
(1) Make any change in the maturity of the
outstanding Bonds or Additional Bonds;
(2) Reduce the rate of interest borne by any
of the outstanding Bonds or Additional Bonds;
(3) Reduce the amount of the principal payable
on the outstanding Bonds or Additional Bonds;
(4) Modify the terms of payment of principal of
or interest on the outstanding Bonds or Additional
Bonds or any of them, or impose any conditions with
respect to such payment;
(5) Affect the rights of the holders of less than
all of the Bonds or Additional Bonds then outstanding;
(6) Change the minimum percentage of the principal
amount of Bonds necessary for consent to such amendment.
(b) If at any time the Authority shall desire to
amend the Resolution under this Section, the Authority shall
cause notice of the proposed amendment to be published in a
financial newspaper or journal published in the State of
Texas, once during each calendar week for at least four suc-
cessive calendar weeks. Such notice shall briefly set forth
the nature of the proposed amendment and shall state that a
copy thereof is on file at the places of payment for inspection
by all holders of Bonds and Additional Bonds. Such publica-
tion is not required, however, if notice in writing is given
to each holder of Bonds and Additional Bonds.
(c) Whenever at any time not less than thirty days
and within one year from the date of the first publication of
said notice or other service of written notice the Authority
shall receive an instrument or instruments executed by the
33
holders of at least three-fourths in aggregate principal amount
of Bonds and Additional Bonds then outstanding, which instru-
ment or instruments shall refer to the proposed amendment
described in said notice and which specifically consent to
and approve such amendment in substantially the form of the
copy thereof on file with the places of payment, the Author-
ity may adopt the amendatory resolution in substantially the
same form.
(d) Upon the adoption of any autendatory resolution
pursuant to the provisions hereof, the Resolution shall be
deemed to be amended in accordance with such amendatory resol-
ution, and the respective rights, duties and obligations under
the Resolution of the Authority and all the holders of
outstanding Bonds and Additional Bonds shall thereafter be
determined, exercised and enforced hereunder, subject in all
respects to such amendments.
(e) Any consent given by the holder of a Bond
pursuant to the provisions of this Section shall be irrevocable
for a period of six months from the date of the first publica-
tion of the notice provided for in this Section, and shall be
conclusive and binding upon all future holders of the same
Bond during such period. Such consent may be revoked at any
time after six months from the date of the first publication
of such notice by the holder who gave such consent, or by a
successor in title, by filing notice thereof:with the places
of payment and the Authority, but such revocation shall not be
effective if the holders of three-fourths aggregate principal
amount of the Bonds and Additional Bonds outstanding prior to
the attempted revocation, consented to and approved the
amendment.
(f) For the purpose of this Section, the fact of
the holding of Bonds by any bondholder and the amount and
numbers of such Bonds, and the date of his holding same may
34
be proved by the affidavit of the person claiming to be such
holder, or by a certificate executed by any trust company,
bank, banker, or any other depositary, wherever situated, show-
ing that at the date therein mentioned such person had on
deposit with such trust company, bank, banker or other depos-
itary, the Bonds described in such certificate. The Authority
may conclusively assume that such ownership continues until
written notice to the contrary is served upon the Authority.
Section 10.3. tdo recourse under or upon any obliga-
tion, covenant or agreement contained in this Resolution, or
in any Bond or coupon hereby secured, or under any judgment
obtained against the Authority, or by the enforcement of any
assessment or by any legal or equitable proceeding by virtue
of any constitution or statute or otherwise, or under any
circumstances, under or independent of this Resolution, shall
be had against any director or officer, as such, past, present
or future, of the Authority, nor either directly or through
the Authority, or through a receiver or trustee in bankruptcy,
or otherwise, for the payment for or to the Authority or any
receiver thereof, or for or to the holder of any Bond-or cou-
pon issued hereunder or otherwise, of any sum that may be due
and unpaid by the Authority upon any such Bond or coupon.
Any and all personal liability of every nature, whether at
common law or in equity, or by statute or by constitution or
otherwise, of any such director or officer,.individually or
in his official capacity, to respond by reason of an act or
omission on his part or otherwise, or for any sum that may
remain due and unpaid upon the Bonds and coupons hereby
secured or any of them, is hereby expressly waived and re-
leased by the purchasers and holders of the Bonds as a con-
dition of--and-consideration for the issuance and sale of such
Bonds and coupons.
35
Section 10.4. The President of the Board shall
be authorized to take and have charge of all necessary records
pending investigation by the Attorney General, and shall take
and have charge and control of the Bonds herein authorized
pending their approval by the Attorney General and registra-
tion by the Comptroller of Public Accounts. Upon registration
of said Bonds, the Comptroller of Public Accounts (or a deputy
designated in writing to act for the Comptroller) shall
manually sign the Comptroller's certificate or registration
prescribed herein to be printed on the back of each Bond,
and the seal of said Comptroller shall be affixed to each of
said Bonds.
Section 10.5. The Bonds when properly executed
by the Authority officials shall be held by the President of
the Board for delivery to the proper purchaser thereof and
the President and Secretary are authorized and directed to do
any and all things necessary or convenient to carry out the
terms of said purchase.
Section 10.6. The Bonds herein authorized are
hereby sold to
, at a price of par plus accrued interest
to the date of delivery, plus a premium of $
Section 10.7. .The Authority covenants to and
with the purchasers of the Bonds that it will make no use of
the proceeds of -the Bonds at any time throughout the term of
this issue of Bonds which, if such use had been reasonably
expected on the date of delivery of the Bonds to and payment
for the Bonds by the purchasers, would have caused the Bonds
to be arbitrage bonds within the meaning of Section 103(c) of
the Internal Revenue Code of 1954, as amended, or any regula-
tions or rulings pertaining thereto; and by this covenant the -
Authority is obligated to comply with the requirements of the
aforesaid Section 103(c) and all applicable and pertinent
Department of the Treasury regulations relating to arbitrage
35
bonds. The Authority further covenants that the proceeds of
the Bonds will not otherwise be used directly or indirectly
so as to cause all or any part of the Bonds to be or become
arbitrage bonds within the meaning of the aforesaid Section
103(c), or any regulations or rulings pertaining thereto.
Section 10.8. All resolutions, orders or other
actions of the Board heretofore adopted, passed or taken
inconsistent with this Resolution are hereby rescinded.
37
ACCEPTANCE CLAUSE
Corpus Christi National Bank, Corpus Christi, Texas,
does hereby accept the duties imposed by this Recoj.ution
authorizing the issuance and sale of Nueces River Authority
Water Supply Revenue Bonds, Series 1979 (City of Corpus Christi
Project), this the day of , 1979.
CORPUS CHRISTI NATIONAL BANK
CORPUS CHRISTI, TEXAS
BY
ATTEST:
Cashier
38
Authorized Officer
INVESTMENT SINKERS
9
February 23, 1979
::::::?6111 979 !
at9743. <12610•224:., Arms
m w •
City Manage: Mr.
Mr. Con Mims
Marvin Townsend]
Mr. Elbert Hooper
Mr. Hobby McCall
Cv
(42 wCODEOE
5 5!
x4-55451
RE: $13,000, 000 Nueces River Authority (Texas) Water Supply Revenue
Bonds, Series 1979 (City of Corpus Christi Project)
Selling - Tuesday, April 3, 1979
Gentlemen:
Enclosed is what I hope is the final draft of the Official Notice of Sale,
Official Bid Form and Official Statement. Attached to these instru-
ments is copy of audited financial statements of the City of Corpus
Christi's Water System Fund.
All of this is being turned over to the printer today and you will nate
that the date for receiving bids for the bonds is now-Imes:tar April f%
1979 at 10:30 A.M. in the City Council Chambers of City of Corpus
Christi.
Marvin Townsend and Harold Zick both will see Moody's Investors
Service and Standard & Poor's Corporation in New York on Monday,
March 19th.
Yours truly,
_,.
PRESIDENT
MEA:md
Encs.
INVESTMENT BANKERS
dl�cra6 JJaar.6-0-
�% zees
February 23, 1979
Mr. Benjamin Phillips
Assistant Vice President
Moody's Investors Service, Inc.
99 Church Street
New York, New York 10007
TCLEPHONE
-A COPE 5,2
r 224-5548 ID
RE: $13, 000, 000 Nueces River Authority (Texas) Water Supply Revenue
Bonds, Series 1979 (City of Corpus Christi Project)
Selling - Tuesday, April 3, 1979
Dear Ben:
Attached is Application and Agreement for Moody's Municipal Bond
Rating on this issue. Your statement for services should be sent to
Nueces River Authority to the attention of Mr. Con Mims, Executive
Director.
Enclosed are two copies of preliminary draft of Official Notice of Sale,
Official Bid Form and Official Statement. All of this is being handed
to the printer today. We doubt any changes will be made but if we
should find an error of any importance, we will contact you.
As you know, these bonds are being issued to pay part of the advance
payment costs of Choke Canyon Project providing a water supply for
the City of Corpus Christi. Either Harold Zick, Director of Finance,
or Marvin Townsend, City Manager, will contact you to see if they
can arrange a meeting for Monday morning, March 19th.
Also enclosed are audited financial statements pertaining to the City
of Corpus Christi's Water System Fund.
If you have any questions, please call me.
Cordially yours,
1
PRESIDENT
MEA: and
Encs.
e/‘etsf./),3.
INVESTMENT BANNERS
e -4e, C PY2d6e/ 4iY.R 7lb 7d'205
February 23, 1979
Mr. Hyman Grossman
Standard & Poor's Corporation
345 Hudson Street
New York, New York 10014
TELEpsonis
AR e81
222 4.. 5548
RE: $13,000,000 Nueces River Authority (Texas) Water Supply Revenue
Bonds, Series 1979 (City of Corpus Christi Project)
Selling - Tuesday, April 3, 1979
Dear Hy:
Attached in duplicate is Application for Municipal Debt Rating from
Nueces River Authority. Your statement for services should be mail-
ed to the River Authority, attention Mr. Con Mims, Executive Director.
Enclosed is preliminary draft of Official Notice of Sale, Official Bid
Form and Official Statement. All of this is being turned over to the
printer today and Marvin Townsend and Harold Zick probably will be
able to bring the finished product with them when they visit with you
on Monday afternoon, March 19th at 2:00 P. M.
Also enclosed is copy of audited financial statements of the City of
Corpus Christi's Water System Fund.
If you have any questions, please phone me.
Cordially yours,
PRESIDENT
MEA: and
Encs.
-FICAN INSTI-0UTE OF'CERTIFIEO PUBLIC ACCOUNTANTS
r. SOCIETY OF CERTIFIED PU BI_IC ACCOUNTANTt
ARTURO VASQUEZ & COMPANY
CERTIFIED PUBLIC ACCOUNTANTS
P. O. BOX 9339
CORPUS CHRISTI. TEXAS 78408
TEL. AC 512-R94-2636
To the Honorable Mayor and Commissioners
City of Corpus Christi, Texas
Corpus Christi, Texas
We have examined the accompanying financial statements and schedules,
pages 2 through 17 of the Water System Fund of the City of Corpus
Christi, Texas, for the years ended July 31, 1974, 1975, 1976, 1977,
and 1978. 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 con-
sidered necessary in the circumstances.
In our opinion, the financial statements and schedules referred to
above present fairly the financial position of the Water System Fund
of the City of Corpus Christi, Texas, as of July 31, 1974, 1975, 1976,
1977, and 1978, and the results of operations and the changes in.
financial position for the years then ended, in conformity with gen-
erally accepted accounting principles, applied on a consistent basis.
Respectfully,
i
ARTURO VASQUEZ ,6j/COMPANY
Certified Public Accountants
December 13, 1978
410 1. A-1
CITY OF CORPUS CHRISTI, TEAS
WATER SYSTEM
BALANCE SHEET'
CURRENT ASSETS:
Cash in bank- Operating Fund
Fatty cash
Accounts receivable - consumers
Less allowance for doubtful accounts
Net accounts receivable - consumers
Accounts receivable - other
Delinquent texas receivable
Less reserve for uncollected taxes
Due from Council of Governments
Due from Texas Highway Department
Due frau Lower Nueces River Nater Supply Distr
Dae from Nueces County
Due from Federal/State Grant Fund
Due from Stores FUnd
Due from Meter Deposit Fund
Inventory of water meters end chemicals
Total current assets
INVESTSTTS AND DEPOSITS:
Investment in Stores Fund
Investment in Maintenance Service Fund
Investment in Insurance Fund
Irmnntaent in Data Processing Fund
Pnstage deposit
Total investments and deposits
ASSETS OF RESTRICTED FUNDS (Exbiblt 1-2)
FIXED ASSETS:
Lead
Utility plant and equipment
Less accumulated depreciation
Total fixed assets
TOTAL ASSETS
anp
JULY 31,
ASSETS
$ 1,187,470 $
275
1,056,675
(42 267)
$
jet
115,551 $
275
551,E
(22,044)
1,014,400 $ 529,046 $
7,214 12,926
1,481 1,718
(1,481) (1,718)
779 804
107 --
23,553
90,000 90,000
45,397 41,439
95,598 122,41?
1211
5,548 $ 118,480 $ 46,456
275 75 75
516,786 445,586 324,463
(20 671) (17,823) (9,734)
496,115 $ 427,763 $ 314,729
16,188 6,317 5,849
1,858
(1,858)
. 247
250 330
55,758
90,E
114,098
90,000
41,096
150,400
1,046
55,758
90,000
36,961
71,269
$ 2,464,741 $ 912,460 $ 799,872 $
325,000
34,626 $ 34,� ,000 $
7,000 7,000
632 632
2,300 2.3
325,E $
34,626
7,000
632.
2,300
8 369,558 $ 369,558 14 369,558
852,505 $ 622,143
325,000 $ 325,000
34,626 34,626
7,000 7,000
632 632
2,300 2.300
$ 369,558 S 369,558
$ 18,502,882 $ 19,244,362 $ 12,561,031 $ 4,922,725 $ 4,132,658
$ 495,364 $ 496,614 $ . 496,114 $
46,016,908(1)44,680,968 43,148,470
(15.318,278) (14,534,508) (13,759,125)
$ 31,193,994 $ 30,643,074 $ 29,885,459
495,614 $ 495,614
41,540,670 40,317,701
(12,927,040) (12,238,010).
$ 29,109.244 $ 28,575,305
$ 52,531,175 $ 51,169,454 $ 43,615,920 $ 35,254,032 5 33,699,664
LIABILITIES. RESERVES AND RETAINED EARNINGS
CURR.TTT LIABILITIES:
Employee deposits
Accounts payable
Payrolls payable
Due to Ges Fund
Due to Wastewater Services Fund
Due to General Fund
Due to Maintenance Service Thad
Due to Lower Nueces River Water District
Advance Prom Revenue Sharing Funds
Total current liabilities
LONG -TEEM BONDED DEBT (Exhibit A-12):
Bonds payable within one year
Bonds payable afterone year
Total long-term bonded debt
-RESER ES:
Restricted Funds (Exhibit 5-2):
Encumbrances
Total reserves
The notes to the financial statements
$ 1,345
422 $
105,849
27,178
1,128
809
307 $
87,278
26,095
835
409,150
327 14,E $ 252 $
5,940
82,629 73,693
9,164
500,000 228
-- 100,000
148
53,783
200,000
461,000 ,
$ 136,731 $ 524.078 $ 607,027 $ 580,115 $ 714,931
$ 840,000 $ 800,000 $ 500,000 $ 681,000 $ 659,E
11,965,000 12,805,000 6,500,000 6,424,000 7,105,000
$ 12,805,000 $ 13,605,000 $ 7,000,000 $ 7,105,010 14 7,764,000
$ 18,502,882 $ 19,244,362 $ 12,111,031 $ 4,922,725 $ 4,132,658
169,699 140,465 364,375 539,121 53,530
$ 18,672,581 $ 19,384,827 $ 12,475,406 1 3,462,846 5 4,186,188
are an integral part of this statement.
Sit K-1 (Continued)
CONLRIBUTICNS (Exhibit K-4)
Federal Contributions - Construction
BTALSED EARNINGS (Exhibit K-3):
Appropriated $ 17,612,485 $ 16,824,438 $ 22,885,459 $ 22,03+,244 $ 20,811,305
Available for appropriation 2,527,869 617,476 198,028 102,827 223,240
CITY OF CORPUS CHRISTI, TEXAS
WATER SYSTEM
BALANCE SHEET
(CONTINUED)
Page 3
41111
JULY 1,
222.2 R
(1)$ 776,509 $ 213,635 $
(1)
Total retained earnings,
$ 20,140,354 $ 171441.914 $ 23,083,487 $ 22,107,071 $ 21,034,545
TOTAL LIABILITIES, RESERVES AND
RETAINED EARNILCS $ 52,531,175 $ 51,169,454 $ 43,165,920 $ 35,2,4,032 $ 33,699,664
Due to an error in the Water System's Section of the 1976-77 Annual Financial Report,
contributions from the Federal Government in support of the Construction Activity sere
inadvertently reported as a reimbursement instead of a contribution. The 1977-78 Annual
Financial Report corrects this error and also presents the effect of this correction
through restatement of prior years' comparative statements.
Exhibit K-2
WATER SYSTEM
ASSETS AND RESERVES OF RESTRICTED FUNDS
JULY 31, 1978
ASST'S: - -
CRO!O: CANYON RESERVOIR CONSTRUCTION FUND - - $ 744
Cash in bank -
Time deposits _ - 4,100,000
U.S. Government Securities 791,000
Construction in process 6,354,385 11,246,129
PADRE ISLAND WATER SYSTEM ESCROW FUND - - $ 490
Cash in bank - -
Time deposits 598
Installment contract receivable - Padre Island Investment Corporation 570,528 1,169,018
FIRST NCRIGAGE WATERWORKS REVENGE BONES ESCROW FUND - -
Cash with trustee $ 5,498,3 9 5,499,343
L.S. Treasury notes -
JUNIOR LIEN WATERWORKS REVENUE BONDS - INTEREST AND REDEMPTION FUND
Cash in bank $ 888,3392
92 588,392
Time deposits - -
TOTAL ASSETS $ 18,502,882
R 225222, $ 11,246,129
Reserve for construction of Choke Canyon Reservoir 1,246,129
Reserve for unearned contract installamnts & future construction _
Reserve for advance refunding - 5,499,343
Reserve for bonds interest end redemption: 172,498
Bonds and interest payable within one year 172,898
Bonds and interest payable after one year -
. 18,502,882
TOTAL RESERVES _ The notes to the financial statements are an integral part of this statement.
Page �+
Wit K-3
RETAINED EARNI!S, AUGUST 1
CITX OF L0RFUS CHRISTI, TEXAS
WATER SYSTEM '
ANALYSIS OF CHANGES IN RETAINED EARNINGS
ADDITIONS:
Set income for the year (Exhibit iC-5)
Transfer of equity from Clarkwood Water System
Contributions of fixed assets - General Fund
Release of excess reserves for First Nnrtgage Water Revenue Bonds
Increase in investment - Daga Processing Fund
Transfer from Choke Canyon construction Fund for Debt Service Released Surplus due to. required Debt Service Reserve levels
Decrease in reserve for encumbrances
1977-78 1976-77
$ 17,441,914 $ 23,083,487
$ 3,154,008 $ 2,410,836
643,400
223,910
Total additions $ 3,797,E $ 2,634,746
DEDUCTIONS:
Transfer to General Obligation Bond Interest & Redemption Fend
Increase in reserve for encumbrances
Increase (decrease) in reserves of restricted funds:
For bonds and interest payable
For calling bonds
For Junior Lien Water Revenue Bonds
For Construction of Choke Canyon Reservoir
Payment for debt service - Lower Nueces River Water Supply District
INTEREST EARNED ON RESTRICTED INVESTMENTS AND TRANSotuetaD TO:
First Mortgage Water Revenue Bonds
Reserve for bonds and interest payable
Junior Lien Water Revenue Bonds Reserve
For bonds and interest payable
Reserve for construction of Choke Canyon Reservoir
Cost of selling Jr. Lien Water Revenue Bonds
Increase in reserve for payment of First Mortgage Water Revenue Bonds'
Contribution of fixed assets to General Fund
Prior Years Depreciation - Federal Capital Contribution
Decrease of state participation in Kelly Ditch Utility Relocation Project
Decrease in net assets due to increase in Long Term Debt
Total deductions
RETA125D EARIEIGS, JULY 31,
DISTRIBYTION OF RETAINED EARNINGS:
Appropriated:
Fixed assets - net (excluding_ Federal Contribution)
Lang -term bonded debt
Total appropriated
Available for appropriation:
Current assets
Investments and deposits
Current liabilities
Reserve for encumbrances
Total available for appropriation
TOTAL DISTRIBUTION OF RETAINED EARNINGS
The notes to the financial statements are an integral part of this statement.
20,919 $ 15,E
29,234 --
156,223 302,256
710,664. . 7,776,742
180,000 180,000
• 1,928
j 1.098,968
$ 20,140,354
1,517
$ 8,276,319
$ 17,441,914
$ 30,417,485 $ 30,429,438
(12,805,000) (13,605,000)
$ 17,612,485 $ 16,824,438
$ 2,464,740 $ 912,E
369,558 369,558
(136,730) (524078)
(169,699) (140,465)
$ 2,527,869 $ 617,476
$ 20,140,354 $ 17.441,914
•
1975-76 1974-75 1973-74
$ 22,107,071 S 21,034,545 $ 19,888,735
$ 2,338,610 $ 2,266,412
55,275 --
3,091
36,760 --
118,593 --
174,747 . --
$ 2,723.985 $ 2,269,503
$ 15,731 $ 20,879
-- 485,591
-- 9,963
376,044
64,000 --
270,000 304,500
38,149
22,686
316,025
36,249,338
314
2,168
802,398
$ 1,416,942
630
8.428
$
1,426000
$ 20,978
(23,457)
282,669
$ 1,74 ,569 $ 1,196,977 $ 280,190
$ 23,083,487 5 22,107,071 $ 21,034,545
$ 29,885,459
(7,000,000)
$ 22,885,459'
$ 29,109,244
(7,105,000)
. 22,004,244
$ 28,575,305
(7,764,000)
$ 20,811,305
$ 799,872 $ 369,558 369,55 $ 8 369,555 $ 8
(607,027) (580,115) (714,931)
•(364,375) (539,121) (53,530)
$ 223,240
$ 21,034,545 .
$ 198,028 $ 102,827
$ 23,083,487 $ 22,107,071
The notes to the financial statements are an integral part of this statement.
Page 5
•
CITY OF'CORFUS CHRISTI, TEXAS
WATER SYSTEM
ANALYSIS OF CHANGES IN CONTRIBUTIONS
YEARS ENDED AS INDICATED
02114 UTICNS: -
Balance, August 1, 1976
Additions:
Department of Housing and Urban Development - Cosm pity
Development Block Grant Funds for Construction
Balance, duly 31, 1977
Additions:
Department of Housing and Urban Development Block Great
Funds for Construction
Balance, duly 31, 1978
Exhibit K-5
OFV2A fl INCOME:
Sale of water
Service connections
pumping services
Total operating income
LESS 0F.RAT112 INCOME DEDUCTIONS:
Operating expense (Exhibit K-7)
Uncollectible accounts
Depreciation expense (Exhibit K-11)
Total operating income deductions
Net operating Income
ADD NON-0FERA'TING INCOME:
011 and gas leases
Interest on general investments
Interest on Bond Fund investments
Interest on First Hort. Water Revenue
Bond Escrow Fund Investments
Interest on Redemption Fund investments
Interest =Choke Canyon Reservoir Fund
Gain on sale of Water System assets
Water line extension charges
Recoveries on damage claims
Recoveries on prior years expenditures
Property rentals
Tax refunds
Sale of City property
Contribution from Revenue Sharing Fund
Contribution from Anti -Recession Fund
Other income
Total non-operating income
$
$ 213,635,
$ 213,635
$ 562,874
$ 776,509
WATER SYSTEM
STATEMENT OF INCOME AND EXPENSE •
Total operating and non-operating income
DEDUCT 20N -OPERATING EXPENSE:
3ond interest
paying agent's fees
Total non-operating expense
NET 1 005E
For Year Ended July 31
1976 .
Page 6
•
l2_
$ 9,763,133 $ 7,320,242 $ 7,000,196 $ 7,101,698 $ 5,900,559
160,385 120,357 119,402 102,000 119,645
10,998, 9,306 10,004, 8.376 7,826
$ 9,934,516 $ 7,449,905 $ 7,129,602 $ 7,212,074 5 6,028,030
$
6,242,061 $ 4,962,293 $ 4,346,528 $ 4,136,725 $ 3,980,934
38,696 18,420 18,240 25,021 10,528
832,965 807,982 771.842 747,286 726,743
7,113,722 $ 5,785,695 $ 5,136,610 $ 4,909,032 $ 4,718,205
$ 2,820,794 $ 1,662,210 $ 1,992,992 $ 2,303,042 $ 1.309,825
$ 56,214 $
330,455
63,042
380,208
20,586
19,752
6,975
3
76
8,762
1,455
7,556
11,942
1,132 $
42,847
1,095 $ 1,015 $ 869
116,529 45,069 45,742
-- -- 1,931
349,983 214,713
35,347 60,835 216,946 196,589
321,759 101,311 - -- --
2,880 6,581 11,279 14,379
8,073 48,974 14,034 29,167
5,977 3,385 4,245 3,710
16,190
4,646 4,912 3,755 2,244
1,562 496 802 1,229
3,506 13,296 453 1,414
-- -- 149,370
7,117 5,346 9,600 13,719
371 948
$ 908,275 $ 1,156,777 $ 577,473 $ 307,198 $ 476,571
$ 3,729,069 $. 2,817,987 $ 2,570,465 $ 2,610,240 5 1,786,398
575,061 $ 407,151 $
231,855 $
341,783.$ 367,273
2,045 2,183
$ 575,061 $ 407,151 $ 231,855 $ 343,828 6 -369,456
$ 3,154,008 $ 2,410,836 $ 2,338,610 p 2,266,412 $ 1,416,942
The notes to the financial statements are an integral part of this statement.
CITY dF CORPUS CHRISTI, TEXAS
WATER SYSTEM
STATEMENT OF IIVCOME�A LABLE FOR DEBT SERVICE
Operating income (Exhibit E-5)
Non-operating income (Exhibit K-5)
Gross revenue
For Year Ended July 31
:Page 7
•
1E4 12.1/119M 421
$ 9,934,516 $ 7,449,905 $ 7,129,602 $ 7,212,074 $ 6,028,030
908,275 1,156,777 577,473 307,198 476,573
$ 10,842,791 $ 8,606,682 $ 7,707,075$ 7,519,272 $ 6,504,603
Deductions:
Operating income deductions (Exhibit K-5) $ 7,113,722
Gain on sale of Water System assets (Note A) 20,586
Sale of City property (Note A) 7,556
Contribution from Revenue Sharing Fund (Note A)
Contribution from Anti -Recession Fund (Note A)
Total deductions - $ 7,141,864
$ 5,7E6,695 $ 5,1 6,610 $ 4.909,032 $
23,860 506 13,296 453
371,948 --- -
4'1,205
378
4
1,414
149,370
$ 6,167,029 $ 5,156,487 $ 4,920.764 $ 4,883,367
Exclusions:
Depreciation Expense $ 832,965 $ 807,982 $ 771,842 $ 747,286 $ 726,743
Payments in lieu of franchise taxes 390,252 292,590 279,769 130,128 235,893
Payments in lieu of property taxes 254,912, 94,855 -- 111,511 31,352
Total exclusions $ 1 478 129 $ 1,195,427 $ 1,051,611 k 988,925 $ 993,988
Adjusted operating income deductions $ 5,663.735 $ 4,971,602 $ 4,104,876 $ 3,931,839 $ 3,881,379
NET REVENUS AVAIIALBE FOR DEBT SERVICE $ 5,179,056 $ 3,635,080 $ 3,602,199 $ 3,587,435 $ 2,615,224
Highest annual debt service
Coverage of highest annual debt service
Number of active meters
Net revenue available for debt service per active
meter
$ 1,391,163 $ 1,391,163 $
3.72 2.61
59,389 . 57,920
$ 87.21 $ 62.76 $
COMPARISON OF ACTUAL WITH REQUIRED RESERVE BALANCE
,JULY 31, 1978
Reserve for:
Bonds and interest payable within one year
Bonds and interest payable after one year
Total
766,750 $
4.57
57,151
63.03 $
997,352 $ 1,000,783
2.61
56,211 55,708
63.$2 $ 46.95
Reg3dxed Actual Excess
$
115,123 $ 172.499$ 57,376
415,894 415.894 -
$ 531,017 $ 588,393 $ 57,376
NOTE A: The City's method of calculating net revenue available for debt service
has been revised to be consistent with the method used in the investment
banking industry.
The notes to the financial statements are en integral part of tbis statement.
•
Exhibit K-7
Water supply:
Water purchased
Wesley Seale Dam
Environmental studies
Water supply study
Rueces River Authority
Total water supply
Water treatment:
Cunningham filter plant
Stevens filter plant
Total water treatment
Distribution:
Pumping plants
Maintenance of lines
Maintenance of meters
Tota]. distribution
Administrative and general:
Director and office administration
Customer service
Meter reading
Credit and collection
Water superintendent
General City administration
Payments to General Fund:
In lieu of franchise taxes
In lieu of property taxes
Ixsurance
Total administrative and general
TOTAL OPERAT/NO EXPENSES
CITY OF CCRPUS CHRISTI; TEXAS
WATER SYSTEM
STATEMERT OF OPERATING EXPENSE
For Year Ended July 3.1
2 1977 1 726lc�7i 1974
$ 1,042,537 $ 907,091 $ 935,247 $ 941,789 $ 911,561
133,346 118,37510 123,262 129,483 88,0329
13,935 18,363 12,390 8,381 --
35,Doo 25,000 25,E
•
$ 1,224,818 $ 1,078,977 $ 1,095,899 $ 1,109,6538 1,118,899
646,672 $ 460,135 $ 375,632 $ 328,763 $
1,123,455
299,265
736,396 546,494 547,913 497,010
1,770,127 $ 1,196,531 $ 922,126 $ 876,676 $ 796,275
149,135 $
901,593 784,513 673,562 625,582 614,888
269,984 228,332 221,058 186,441 169,529
117,251 $ 103,511 $ 95,586 $ 89,589
1,320,712 $ 1.,130,096 $ 998,131 $ 907,609 $ 874,006
39,089 $
154,934
121,364
128,869
129,197
516,713
18,546 $ 6,096 $ 46,637 $
138,903 131,268 125,248
119,643 110,034 98,774
93,052 95,457 107,741
105,401 84,164 72,548
548,799 496,793 451,90o
34,201
115,813
93,152
99,646
65,767
395,800
390,252 292,590 279,769 130,128 235,893
254,912 94,855 -- 111,511 31,352
191,074 144,900 126.791 98,300 120,100
$ 1,926,404 $ 1,556,689 $ 1,330,372 t 1,242,787 $ 1,191,754
$ 6,242,061 $ 4,962,293 S 4,346,528 $ 4,136.725 $ 3,9805934
The notes to the financial statements are an integral part of this statement.
.,Page 9
it s-8
Funds were provided by:
Operations:
Net income for the year
Add depreciation expense
CITY OF CORPUS CP.RISTI, TEXAS
WATER SYSTEM
STATEMENT OF CHANCES In FIRANCIP.L 2822102
For Year'
17
$ 3,154,008 $ 2,410,836
832,965 807,982
,Funds provided from operations - $ 3,986,973 $ 3;218,818
Proceeds from Junior Lien Water Revenue Bond Sale -- 7,105,000
Released surplus due to required debt service reserve levels- --
Contribution from Federal Government for Construction 5622,887746 213,6
Sale Water System assets
Transfer from Choke Canyon Construction Fund for Debt Service 643,400 - --
Transfer from Clarkwood Water System --- _ --
Decrease in working capital -- '-
Decrease in reserve for bonds and interest payable 46,373 --
TOTAL FUNDS PROVIDED $ 5,248,516 $ 10,5111,233,
Funds were applied to:
Additions to fixed assets - net:
From Clarewood Water System $ $ --
Eros Federal Contributions for Construction 562,874- • 213,635
From revenue 831,836 1,357,257
Total additions to fixed assets $ 1,394,710 $ 1,570,892
Decrease in State participation of Kelly Ditch Utility Line Relocation -- - --
Retirement of revenue bonds - current maturities 800,000 500,000
Payment of debt service on tax bonds issued for water utility plant 20,919 - 15,804
Increase First Nbrtgage Waterworks Revenue Bond Reserves - --
Increase in reserve for calling bands - 202,596 149,298
Increase Junicr Lien Waterworks Revenue Bond. Reserves -- - --
Increase in reserve for bonds and interest payable -- - 152,957
Advance refunding of First Mortgage Waterworks Revenue Bonds -
Increase in reserve for Cboke Canyon Construction - 710,664 7,776,741
.Increase in working capital 1,939,627 195,541
Payment for debt service - Lower Nueces River Water Supply District 180 0,0000 180,000
TOTAL FUNDS APPLIED $ 5,248,516
Exhibit 2-9
WATER SYSTEM
BOND FUND NO. 202
CHOKE CANYON RESEAVOLR CONSTRUCTION FUND
-JULY 31, 1978
Payments to Bureau of Reclamation
Junior Lien Debt Service
Total
Funds evadable for appropriation:
Project Allocations
Less appropriations
Funds available for appropriation
Cash noslticn:
Cash and investments - Construction Account
Cash and investments - 203 Escrow Account
Less unencumbered appropriation balance
Cash available for appropriation
The notes to the financial statements are an integral part of this statement.
$ 10,541,233
Project Amount
Allocations Appropriated
$ 11,246,129 $ 11,178,865
643,400 643,400
$ 11,889,529 $ 11,822,265
$ 3,391,744
1,500,000
•
Ended July, 31
1976 - 1975 1T74
$ 2,338,610 $ 2,266,412 $ 1,416,942
771,842 747,286 726,743
$ 3,110,452 $ 3,013,698 $ 2,143,685
7,815,E --
118,593 -- --
1,490 4,003 4,688
55,275 -- --
79,545-
-- 23,457
$ 11,260,355 $ 3,017,701 $ 2,171,830
$ 43,937 $ __ $ --
1,505,924 1,282,1371 1,015,752
6 1,549,861 $ 1,282,137 $ 1,015,752
2,168
895,000 659,000 645,000
15,731 20,879 20,978
287,1487 -- --
376,044 282,669
86,686 -- --
-- 9,963 --
7,907,397 -- _- '
316,025 -- --
-- 365,178 207,431
200,000 304,500 --
$ 11,260,355 $ 3,017,701 $ 2,171,830
Unencumbered
Encumbrance- Appropriation
Expenditures Balance
$ 6,354,385 $ 4,824,480
643,400 --
6 6,997,785 $ 4,824,480
$ 11,889,529
11,822,265
$ 67,264
$ 4,891,744
4,824,480
67,264
The notes to the financial statements are an integral part of this statement.
.11
it ;-10
CITY OF CbRPUS cknisTI, TEXAS
WATER SYSTEM •
STATEMENT OF EXPENDITURES AND ENCUMBRAWCES - COMPARED WITH APPROPRIATIONS
YEAR ENDED JULY 31, 1978
EXPENDITURES
Peraonel M1aterials Contractual
Services & Supplies Serviees
Water supply: _
Water purchased $ -- $ -1,042,537 $
Wesley Seale Dem 98,417 5,620
Enviromse.^.tal studies --
Water supply development -- --
Nueces River Authority -- --
Total water supply
Water treatment:
Cunningham filter plant
Stevens filter plant
Total water treatment
Distribution:
Pumping plants
Maintenance of lines
Maintenance of meters
Total distribution
29,309
13,935
35,000
98,417 $ 1,048,157 $ 78,244
$ 271,604 $ 140,561
242,808 299,249
$ _514,412 $ 439,810
$
234,507
581,398
815,905
$ 88,596 $ 5,378 $ 55,161
504,372 225,439 171,782
201.405 59,137 9,442
794,373
$ 299,954
$ 236,385
Administrative and general: -
Director and office administration $ 120,503 $ 2,851 $ 8.735
Custaer Service 230,608 11,130 68,100
Mater Reading • 338,285 11,904 9,535
Credit and collection 201,468 11,450 - 39,037
Water superintendent 111,832 - 2,262 15,103
General City ministration -- -- - -'-
Payments in lieu of taxes -- -- - -
insurance -- 191,074
Debt service - -- - --
Payments for debt service - Lover Nueces River Water Supply District - - - --
Payments to Debt Service Fund -- -
Contingency reserve --
Total administrative and general
Capital outlay:
Construction
Land, buildings and equipment
Total capital outlay
Total expenditures and encumbrances
Deduct =on -operating expenditures included above:
Capital outlay
Debt service
Payment for debt service - Lover Rueces River Water Supply District
Payments to Debt Service Fund
Contingency reserve
Total deductions
CPEP,ATLNG EXPENDITURES
$ 1,002,696 $ 39,597 $ 331,58+
$ 553,743 $ 650,773 $ 91,38+
$ 553,743 $ 650,773 $ 91,384
p 2,963,641 $ 2,468.293, $ 1,553.502
$ 553,743 $ 650,773 $ 91,384
$ 553,743 $ 650,773 $ 91,384
$
2,409, $ 1,817,518 $ 1,462,118
The notes to the financial statements are an integral part of this statement.
Page 12
•
;ther Capital Reimburse- Total Appropria- Unexpended Unencumbered
C21=7.2 lutlay wants Fxoeod+tures tions Balanice Encumbrances Balances
8 -- $ -- $ -- $ 1,042,537 $ 1,042,644 $ 107 $ -- $ 107
-- -- -- 133,346 128,175 (5,171) 972 (6,143)
- - -- 5,152 5,152 5,152
-- -- -- 13,935 . 15,E 1,065 -- 1,065
- - - 35,000 35.000 -- -- - --
S -_ $ __ $ $ 1,224,818 $ 1,225,971 $ 1,153 $ 6,124 $ (4,971)
E - $ --• $ $ 646,672 $ 598,628 $ (48,044) $ 334 $ (48,378)
-- -- 1,123,455 1,057,910 (65,545) 862 (66,407)
S - $ $ -- $ 1,770,127 $ 1,656,538 $ (113,589) $ 1,196 $ (114,785)
$ -- $ $ -- $ 149,135 $ 212,098 $ 62,963 $ -- $ 62,963
-- - 901,593 861,349 (40,244) 694 (40,938)
-- - 269,984 284,828 14,844 9,982 4,862
$ -- $ $ - $ 1,320,712 $ 1,358,275 $ 37,563 $ 10,676 $ 26,887
$ - $ $ (93,00o) $ 39,089 $ 39,648 $ 559 $ 30 $ 529
231,276 (386,180) 154,934 155,158 224 1,278 (1,054)
9,089 (247,449) 121,364 121,096 (268) 362 (630)
53,364 -- (176,450) 128,869 133,377 4,508 2,444 2,064
129,197 131,326 • 2,129 153 1,976
516,713 - 516,713 516,713 -- --
645,164 -- 645,164 657,912 12,748 -- 12,748
191,074 191,074
824,842 824,842 1,468,242 643,400 -- 643,400
180,000 180,000 180,000 -- • -- --
20,919 20,919 20,919 -- --
-- - -- 169,023 169,023 -- 169,023
$ 2,481,367 $ $ (903,079) $ 2,952,165 $ 3,784,488 $ 832,323 $ 4,267 $ 828,056
$ 10 $ 28,473 $ (562,874) $ 761,509 $ 863,946
-- 70,328 -- 70,328 223,034
t 10 1 98,801 $ (562,874) $ 831,837 $ 1,086,980
$ 2,481,377 $ 98,801 $ (1,465,953) $ 8,099,659 $ 9,112,252
$ 102,437
152,706
$ 255,14
$ 1,012,593
$
$
48,823
98,614
147,437
169,700
$ 53,614
54,092
$ 107,706
$ 842,893
$ 10 S 98,801 $ (562,874) $. 831,837 $ 1,x,980 $ 255,143 $ 147,437 $ 107,706
824,842 -- -- 824,842 1,468,242 643,400 -- 643,400
180,000 -- -- 180,000 180,000 -- -_ --
20,919 - 20,919 20,919 -- -- --
-- -- - 169,023 169,023 -- 169,023
$ 1,025,771 $ 98,801 $ (562,874) $ 1,857,598 $ 2,925,164 $ 1,067,566 $ 147,437 $ 920,129
$ 1,455,E .$ -- $ (903,079) $ 6,242,061 $ 6,187,088 $ (54,973) $ 22,263 $ (77,236)
The notes to the financial statements are an integral part of tbis statement.
Page li
LAND:
Water offices and shop
Cunningham filter plant
Stevens filter plant
Savage land reservoir
Caldwell Street reservoir
Holly Road reservoir
Flour Bluff storage and main
Various tracts - distribution system
•
Total land
BUILDINGS:
Wesley Seale Dam
Cunningha. filter plant
Stevens filter plant
Utilities office buildings
Clarkvood Office and pump pailAinge
Holly Road filter plant
Flour Bluff
Cayo del Oso pumping plant
Clarkwood Tool Souse
CITY OF CORPUS CHRISTI. TEXAS
WATER SYSTEM •
FIXED ASSETS.
JULY 31, 1978
•
ASSETS
8/1/77e
36,932
22,486
282,304
12,178
11,070
30,674
3,191
97,779
496,614
1
1,005924
3,837,882
190,190
2,452
35,968
7,190
4,070
722
•
Additions Retirements
$
$
Total buildings - $ 4,085,558 f
1,250 .
P 1,250
IMPROVEMENTS OTHER THAN BUILDINGS:
Wesley Seale Dace $ 77,854 $ - $
esnninghas filter plant - 595,837 8,054
Stevens filter plant - 499,700 13,614
Railroad spur - Stevens plant - 39,404 --
Holly Road filter plant 65,890 --
Water wells 141,926
Savage land reservoir 1,7127,040 -
Caldwell Street reservoir - - �52,6Q2 --
Holly Road transmission line 1,566,268 --
Flour Bluff storage and main - 2,095,151 --
S. Staples - Baldwin Transmission Main 175,642 -
Other transmission lines - 3,595,904 18,661 (1)(6,409)
Distribution tains 19,997,960 759,921 (1)(152,557)
Clarkvood distribution mains 122,668 -- - --
Elevated storage tan$. 453,990 -- -"'
Holly road storage tank - 4,4,13{95 450,708 1,9--
Meters and service connections
73
(1)(45,333)
Clarkvood meters and connections 11,573
Fire hydrants 1,256,644 67,387 (1)(9,336)
Clarkvood fire hydrants 193 - -- --
Water Division office improvements - -- 2,439 --
Lake Corpus Christi fencing and piles - prior to 1967-68 1.122 -- --
Total improvements other than buildings
: MSCRINTRY AND EQUIPMENT:
C,,,irghan filter plant
Stevens filter plant
Holly Road filter plant
Savage Lane reservoir
TransmissiOn valves
Maintenance and construction equipment prior to 1973-74
Maintenance and construction equipment - 1973-74
Maintenance and construction equipment - 1974-75
Maintenance and construction equipment - 1975-76
Maintenance and construction equipment - 1976-77
Maintenance and construction equipment - 1977-78
Motorized equipment - prior to 1973-74 _
Motorized equipment - 1973-74
lb rorized equipment - 1974-75
$ 37,136,199 $ 1,320,784 $ (211,662)
$ 522,761
$ 3,613
$
4o,536 3,600
479,430 --
27,482 -- --
104,423 --
159,838 -- 5,450
33,112 --
27,036 --
22,354 --
22,539 - --
6,872
352,709 2,869 54,216
85,541
69,293
The notes to the financial statements are an integral part of this statement.
ACCUMULATED DEPRECIATION
Balance Balance Depreciation - Balance Nat
7/31/78 Rate 8/1/77, For Period Retirements 7/31/78 7/31/78 -
$ 36,932 $ -- $ -- $ -- $ - $ 36,932
22,486 -- -- -- -- 22,486
282,304 -- -- -- -- 282,304
12,178 -- - - 12,178
11,070 -- - -- 11,070
30,674 -- 30,674
3,191 - 3,191
96,529 -- -- 96,529
$ 495,364 $ -- $ -- $ -- $ $ 495,364
$ 1,130 2.25% $ 88 $ 25 $
1,005,924 2.25% 755,789 22,633
3,837,882 2.00% 1,685,681 76,758
190,190 2.00% - 90,918 • 3,804
2,452 5.00% 2,452 .--
35,968 2.001, 9,707 719
7,190 2.00% 1,871 144
4,070 2.00$ 770 - 81
752 8.00% 382 60
113 $ 1,017
778,422 227,502
1,762,439 2,075,443
94,722 95,468
2,452 --
10,426 - 25,542
2,015 5,175
851 3,219
- 442 310
$ 5,085,558 $ 2,547,658 $ 104,224 $ -- $ 2,651,882 $ 2,433,676
$ 77,854 5.00% $ 15,506 $ 3,893 $ - -- $ 19,399 $ 58,455
603,891 2.501, 508,277 14,997 -- 523,274 80,617
513,314 1.25% 118,088 6,331 -- 124,419 388,895
39,404 3.33% 27,889 1,312 -- 29,201 10,203
65,890 1.25% 11,512 824 -- 12,336 53,554
141,926 5.00% 141,926 -- 141,926 --
1,127,040 1.25% 405,074 14,088 . -- 419,162 707,878
252,602 1.25% 104,976 3,158 -- 108,134 144,468
1,566,268 1.00% 242,776 15,663 -- 258,439 1,307,829
2,095,151 1.251, 117,851 26,189 -- 144,040 1,951,111
175,642 1.00% 878 1,756 -- 2,634 173,E
3,620,974 1.00% 1,111,012 36,117 - (1) (32) 1,147,161 2,473,813
20,910,438 1.25% 3,757,273 256,631 (1)(954) 4,014,858 16,895,580
122,668 1.25% 81,992 1,533 83,525 39,143
453,990 2.00% 338,740 9,080 - 347,820 106,170
599,495 1.25% 101,046 7,494 -- 108,540 490,955
4,953,404. 3.33% 2,715,470 157,511 1,973 2,871,763 2,081,641
(1)(755)
11,573 3.33% 11,573 -- 11,573
1,333,367 4.001, 935,168 51,987 (1)(187) 987,342 346,025
193 4.00% 193 -- 193 --
2,439 .15.001, -- 183 -- 183 2,256
1,122 5.00% 880 56 -- 936 186
5 38,668,645 $ 10,748,100 - $ 608,803 $ 45 $ 11,356,858 $27,311,787
$ 526,374 2.50% $ 360,642 $ 13,114 $ $ 373,756 $ 152,618
44,136 2.501, 1,517 1,058 -- 2,575 41,561
479,430 2.50% 161,811 11,986 -- 173,797 305,633
27,482 2.50% 15,584 687 -- 16,271 11,211
104,423 2.50% 11,749 2,61 -- 14,360 90,063
154,388 9.50% 107,948 14,926 3,624 119,250 35,138
33,112 9.50% 11,011 3,146 -- 14,157 18,955
27,036 9.50% 6,421 2,568 -- 8,989 18,047
22,354 9.50% 3,186 2,124 - 5,310 17,044
22,539. 9.50% 1,071 2,141 -- - 3,212 - 19,327
6,872 9.50% -- 327 -- 327 6,545
301,361 15.00% 337,944 8,944 42,69) 301,361 --
85,541 15.00% 44,910 12,831 -- 57,741 27,800
69,293 15.00% 25,985 10,394 -- 36,379 32:914
The notes to the financial statements are . an integral part of this statement.
Page 14
Page 15
C-11 (Continued)
CITY OF CORPUS CFRRISTI, TEXAS
WATER SYSTEM. .
FIXED ASSETS
JULY. 3L, 1976
(CONTINUED)
MACHINERY AND EQUIPMENT (Continued):
3btorized equipment - 1975-76
Motorized equipment - 1976-77
Motorized equipment - 1977-78
Repair shop equipment - prior to 1966-67
Communication equipment prior to 1973-74
Communication equipment - 1973-74
Communication equipment - 1974-75
Clarionood office furniture and fixtures
Office furniture and fixtures prior to 1973-74
Office furniture and fixtures - 1973-74
Office furniture and fixtures - 1974-75
Office furniture and fixtures - 1975-76
Office Thrniture and fixtures - 1976-77
Office furniture and fixtures - 1977-78
Total machinery and equipment
(1)
TOTAL FIXED ASSETS
ASSETS
Balance
8/1/77 Additions Retirements
$ 32,684 $
107,301.
56,055
3,480
38,297
629
11,200
993
91,041
1,569
3,231
7,705
393
$
3,786
$ 2,245,576 ey 76,795 $ 99,666
$ 44,963,947 $ 1,397,579 p (150.746)
Dae to an error in the Water System's Section'of the 1976-77 Annual Financial Report,
contributions from the Federal. Government in support of the construction activity were
inadvertently reported as a reimbursement instead of a contribution. The 1977-78 Annual
Financial Report corrects this error and also presents the effect of this correction
through a restatement of prior years' comparative statements. _
The notes to the financial statements are an integral part of this statement,
Balance
Balance Depreciation
Balance Net
7/31/78 Rate 8/1/77 For Period Retirements 7/31/78 7/31/78
I $ 32,684 -15.00% $ 7,354 $ 4,903 $ -- - $ 12,257 $ 20,427
107,301 15.00% 8,048 16,095 -- 24,143 83,158
56,055 15.00% -- 4,204 -- 4,204
3,480 3.33% 2,542 116 268 51,851
822,297 10.001 35,097 3,200 -- 38,297 --
0.00% 221 6 284
11,2200 10.00% 2,800 1,120 -- 3,920 - 7,2800
993 10.00$ 752 99 851 142
91,041 10.00% 89,239 1,802 91,041
1,569 10.00% 549 157 -- 706 863
3,231 10.00% 808 323 -- 1,131 2,100
7,705 10.00% 1,542 771 - 2,313 5,392
393 10.00% 20 39 59 334
3,786 10.00% -- 189 189 3,597
$ 2,262,705 $ 1,238,751 $ 119,938 $ 49,151 $ 1,309,5118 $ 953,167
t 46,512,272 $ 14,534,509 $ 882,965 $ 49,196 $ 15,318,278 $ 31,193,994
The notes to the financial statements are an integral part of this statement. - - -
•it R-12
CITY OF CORPUS CHRISTI, TEXAS
WATER'SYSTL'M'
BONDED DEBT SERVICE REQUIIL:MgNTS BY YEARS
JULY 31, L978
Junior Lien Water Revenue Bonds
Fiscal Year (Principal Due July 10) Bond Interest Requirements
Ending 10-10-75 1-10-77 (Interest Doe January 10 and July 10)
July 31 (A) (B) Totals 10-10-75 1-10-77 Totals
1979 $ 500,000 $ 340,000 $ 840,000 - $ 247,500 $
1980 500,000 385,000 885,000 226,875
1981 500,000 420,000 920,000 206,250
1982 500,000 455,000 955,000 185,625
1983 500,000 490,000 990,000 165,000
1984 -500,000 535,000 1,035,000 144,375
1985 500,000 580,000 1,080,000 123,750
1986 500,000 620,000 1,120,000 103,125
1987 500,000 670,000 1,170,000 82,500
1988 500,000 720,000 1,220,000 61,875
1989 500,000 770,000 1,270,000 41,250
1990 500,000 820.000 1,320,000 20,625
TOTALS 56,000,000 $6,805,000 $12,805,000 $ 1,608750
NOTE A: This Debt Issue 1s represented by a single registered bond
bearing interest at the rate of 4.125%. This bond was sold
to the Texas Water Development Board to provide funds for the
advance refunding of outstanding First Mortgage Water Revenue
Bonds.
NOTE B: This Debt Issue 1s represented by a single registered bond
bearing interest at the rate of 4.32$. This bond Was sold
to the Tease Water Development Board to provide funds for
the construction of the Choke Canyon Reservoir.
Exhibit 5-13
Balance, August 1, 1977
Additions:
From revenues
Total additions
Deductions:
Investment income transferred
to Choke Canyon Reservoir Fund
Retirement of bond principal
Retirement of bond interest
Total deductions
Balance, July 31, 7.978
WATRR SYSTEM
ANALYSIS OF CHANCES IN RESERVES
YEAR ENDED JULY 31, 1978
Reserve for
Constructional
Choke Canyon
Reservoir
$ 11,178,865
$ 710,664
$ 710,664
643,400
$ &3,400
$11,246,129
First Mortgage
Waterworks .
Revenue Rands
Escrow Fund
Reserve for Bonds
& Interest Payable
$ 6,496,958
$ 306,894
$ 376,894
$
330,456
714,000
260,053
$ 1,304,509
$ 5,499,343
293,976 $ 541,476
279,288 506,163
262,656 468,906
224,85 389,12 856
203,688 348,063
180,576 304,326
155,520 258,645
128,736 - 211,236
99,792 161,667
68,688 109,938
35,424 56,049
rage
Total
Requirements
$
1,381,476
1,391,163
1,385,11337
1,379,856
1,383,063
1,384,326
1,378,645
1,381,236
.1,381,667
1,379,938
1,376,049
$ 2,177,712 $ 3,786,462 $ 16,591,462
Junior Lien
Waterworks Revenue Bonds
Interest & RedeMption Fund
Reserve
for Bends .
& Interest Reserve for -
Payable Future Maturities Total
$ 218,872 $ 213,298
$ 1,328,687 $ 202,596
$ 1,328,687 $ 202,596
$ --
5a00
7755,061
$ 1,375,061
$ 172,498
The notes to the financial statements are an integral part of this statement.
$
$ 18,107,993
$ 2,548,841
$ 2,548,841
-- $ 330,456
-- 2;157,400
-- 835,114
$ -- $ 35322,970
$ 415,894 $ 17,333,864
CITY OF CORPUS -CHRISTI, TEXAS '
WATER SYSTEM
NOTES TO FINANCIAL STATEMENTS
FOR FISCAL YEAR ENDED JULY 31, 1978
1. Summary of Significant Accounting Policies
The City of Corpus Christi 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 control financial operations and legally,
restrict the level of expenditures.
The accrual basis of accounting is used for the Water System.
Fixed assets are recorded at cost and depreciated over the estimated useful
lives of the assets. Since detailed individual cost records were not
maintained adequately prior to 1956, some inconsistency has occured in
recording the purchase and retirement of these assets for those prior years.
Inventories are recorded at the lower of cost or market with reductions
made for permanent decreases in value due to obsolescence, damage, deteri—
oration, etc. Inventory issues are expensed on the first—in, first—out and
average cost basis. The nature of the inventory determines the method of
costing to be used. -
2. Water System
A. Advance Refunding of First Mortgage Waterworks Revenue Bonds
In October 1975, the City advance refunded all of its outstanding
$7,105,000 First Mortgage Waterworks Revenue Bonds, executed an escrow
agreement with the Mercantile National Bank at Dallas, Dallas, Texas
and deposited with the Bank cash totaling $8,318,728.75 for payment
CITY OF CORPUS CHRISTI,' TEXAS
WATER SYSTEM
NOTES TO FINANCIAL STATEMENTS (continued)
FOR FISCAL YEAR ENDED JULY 31, 1978
of principal, interest and the call premium as
Outstanding Bond Principal
Interest thru.Maturity and/or Call Date
Call Premium
Total Deposited with Bank
follows:
$7,105,000.00
1,125,803.75
87,925.00
$8,318,728.75
The City sold a single bond entitled City of Corpus Christi, Texas
Junior Lien Waterworks Revenue Bond, Series 1975 in the principal
amount of $7,895,000.00 to the State of Texas Water Development
Board for the purpose of providing monies for the advance refunding
of the First Mortgage Waterworks Revenue Bond. The sale of the bond
and the related bond premium together with $415,257.99 of released
First Mortgage Waterworks Revenue Bond Reserves provided all of the
monies required for the advance refunding.
Under the escrow agreement, the Mercantile National Bank at Dallas,
Dallas, Texas, deposited the above mentioned $8,318,728.75 into a
trust fund account designated "City of Corpus Christi, Texas First
Mortgage Waterworks Revenue Bond Interest and Sinking Fund - Escrow -
Account." The funds in the Escrow Account can only be used to pay
principal, interest and call premium on the First Mortgage Waterworks
Revenue Bonds. Monies in the Escrow Account are authorized for invest-
ment only in Federal Securities. The following schedule lists bond
principal and interest payments and the par amount and maturity date
of related Federal Securities at July 31, 1978:
Bond Interest and Principal Payments Federal Securities
Maturity
Date
Interest Principal
12-01-78 $114,435.00 $ —
6-01-79 114,435.00 734,000.00
12-01-79 95,055.00 —
6-01-80 95,055.00 765,000.00
Call Premium
6-01-80 87,925.00 ' 3,517,000.00
$506,905.00
$5,016,000.00
Total
$ 114,435.00
848,435.00
95,055.00
860,055.00
3,604,925.00
$5,522,905.00
Cash
Maturity Par
Date Amount
Treasury Notes
12-01-78 $ 115,000.00
6-01-79 850,000.00
12-01-79 95,000.00
5-15-80 1,545,000.00
6-01-80 2,920,000.00
5,525,000.00
balance 973.75
$5,525,973.75
CITY OF CORPUS CHRISTI, TEXAS.
WATER SYSTEM
NOTES TO FINANCIAL STATEMENTS (continued)
FOR FISCAL YEAR ENDED JULY 31, 1978
B. Junior Lien Waterworks Revenue Bonds, Series 1975
(1) At July 31, 1978, $6,000,000 of the Junior Lien Waterworks
Revenue Bond was outstanding. Net revenues of the Water System
are pledged as security for this debt subject to a first lien and
pledge of net revenues for any First Lien Waterworks Revenue bonds
which may be issued hereafter.
(2) Funds Required:
The Water Revenue Fund accounts for all operations of the Water
System.
The Interest and Sinking Fund accumulates monies to pay bond
principal and interest as they mature. Monthly deposits must
be equal to 1/12 of the next maturing bond principal and 1/6
of the next maturing interest payment.
,
The Reserve Fund ( a separate reserve account in the Interest and
Sinking Fund entitled Reserve for Bonds and Interest Payable
After One Year) accumulates a reserve for bond principal and
.interest at monthly deposit rates of $8,000 until a maximum
reserve of $640 000 has been accumulated.-
C.
ccumulated.
C. Junior Lien Waterworks Revenue Bonds, Series 1977
(1) On January 10, 1977, an additional Junior Lien Waterworks Revenue
Bond in the amount of $7,105,000 was sold to the Texas Water
Development Board. At July 31, 1978, $6,805,000 was still
outstanding. Net revenues of the Water System are pledged as
security for this debt subject to a first lien.
(2) Funds Required:
The Water Revenue Fund accounts for all operations of the Water
System.
The Interest and Sinking Fund accumulates monies to pay bond
principal and interest as they mature. Monthly deposits to the
Interest and Sinking Fund must be,equal to 1/12 of the next
maturing bond principal and 1/6 of the next maturing interest
payment.
a.J
CITY OF CORPUS'CHRISTI, TEXAS '
WATER SYSTEM
NOTES TO FINANCIAL STATEMENTS (Continued)
FOR FISCAL YEAR ENDED JULY 31, 1978
The Reserve Fund (a separate reserve account in the Interest and
Sinking Fund entitled Reserve for Bonds and Interest Payable
After One Year) accumulates a reserve for bond principal and -
interest at monthly deposit rates of $8,883 until a maximum
reserve of $1,350,640 has been accumulated.
D. Water Supply Contract
Corpus Christi's water supply is from the Nueces River Watershed
impounded in Lake Corpus Christi by the Wesley Seale Dam owned by
the Lower Nueces River Water Supply District. On August 10, 1955,
the City entered into a 30 year contract to purchase all of the
available raw water with a minimum annual charge of $480,000 for
the first 14 billion gallons and an additional declining scale of
rates ranging from 3.25 cents to 1.50 cents per 1,000 gallons for
annual water purchases in excess of the minimum 14 billion gallons:—
The contract requires the City to operate and maintain the dam at
its own expense during the term of the contract. The contract
provides for the negotiation of 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 also gives the City the option, at the time all of the
bonds issued by the District are paid off, to acquire title to the
reservoir by making whatever minimum payment would be required by
law.
As of July 31, 1978, the District had outstanding bonds payble
totaling $7,924,000 which mature annually through 1986.
The City entered into a supplemental agreement with the District
whereby the City has agreed to pay to the District a total of One
Hundred -Eighty Thousand Dollars ($180,000) during the 1977-78
fiscal year as a payment for the purpose of enabling the District
to meet its construction and debt service obligations and thus
expedite the transfer of title of the reservoir to the City of
Corpus Christi.
•
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
$13,000,000
NUECES RIVER AUTHORITY
(A Political Subdivision of the State of Texas)
WATER SUPPLY REVENUE BONDS, SERIES 1979
(CITY OF CORPUS CHRISTI PROJECT)
Bids to be Received
, 1979 until 10:30 A.M.
THE SALE
Bonds Offered for Sale ... Nueces River Authority is offering for sale at competitive
bidding $13,000,000 Water Supply Revenue Bonds, Series 1979 (City of Corpus Christi
Project) more completely described in the Official Statement which is a part hereof.
Place and Time of Sale ... The Authority will receive sealed bids at the City of Corpus
Christi City Council Chambers, City Hall, 302 Shoreline Drive, until 10:30 A.M. on
1979.
Address d( Bidsv... All bids should be plainly marked "Bid for Bonds" and addressed
to the President and Board of Directors of Nueces River Authority. All bids must be
submitted on the Official Bid Form without interlineation or alteration. Two copies
of the bid form are enclosed. All bids must be delivered at the above address prior
to the above scheduled time for bid opening. Any bid received after such scheduled
time for filing will not be accepted and will be returned unopened.
Award of Sale of the Bonds ... Subject only to rejection of all bids, Authority will
award the sale of the Bonds promptly after the opening and comparison of bids.
THE AUTHORITY RESERVES THE RIGHT TO REJECT ANY OR ALL BIDS, AND TO
WAIVE ANY IRREGULARITIES, EXCEPT TIME OF FILING.
CONDITIONS OF THE SALE
Interest Rate ... Bids must be for all or none of the Bonds and at a price of not less
than their par value plus accrued interest from their date to date of delivery.
Bidders are invited to name the rate or rates of interest to be borne by the Bonds,
provided each rate bid must be in a multiple of 1/8th of 1% or 1/20th of 1%, and the
highest coupon rate bid may not exceed the lowest coupon rate bid by more than
1 1/2% in coupon rate. No limitation is imposed as to the number of rates or coupon
changes, however, 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.
Basis for Award ... For the purpose of awarding sale of the Bonds, the net interest
cost of each bid will be computed by determining, at the coupon rate or rates speci-
fied, the total dollar value of all interest on the Bonds from their date to the respect-
ive 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 Authority. In the event of any error in computing the interest
cost, the coupon rates specified on the Official Bid Form will be considered the.
correct bid.
Good Faith Deposit ... A Good Faith Deposit shall be required in the amount of
$260,000 and shall be in the form of a Cashier's Check payable to the Nueces River
Authority. The Good Faith Deposit shall be retained uncashed by the Authority and
applied on the purchase price of the Bonds, or returned to the Purchaser upon pay-
ment for the Bonds, whichever he desires. If the Purchaser 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 Authority 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
Authority 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
Purchaser who shall be named in such :instructions. Checks of unsuccessful bidders
will be returned upon award of the Bonds.
A..
•
DELIVERY 01? SECURITIES
AND ACCOMPANYING DOCUMENTS
Printed Bonds ... The Authority 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 Authority; however, the CUSIP Service
Bureau charge for the assignment of said numbers shall be the responsibility of and
shall be paid by the Purchaser.
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 anticipat-
ed that delivery can be made on or about /4 z 7 , 1979. Authority's Financial
Advisor will,give the Purchaser at least five bu§iness 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 Authority is unable to make
delivery on or befo y' 7 , 1979, then the Purchaser 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 Executive Director.
Legal Opinions ... The Bonds are offered when, as and if issued, subject to the un-
qualified legal opinion of the Attorney General of the State of Texas and Messrs.
McCall, Parkhurst & Horton, Dallas, Texas. The opinion of said firm will be print-
ed on the Bonds.
No -Litigation Certificate ... The Authority will execute and deliver to the Purchaser
a certificate that no litigation of any nature has been filed or is then pending to re-
strain 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 said coupons.
Certification as to Official Statement ... At the time of payment for and delivery of
the Bonds, the Authority will furnish the Purchaser a certificate, signed by the
President and Secretary acting in their official capacity,
to the effect that the "Official Statement" has been authorized and approved by the
Board of Directors, and to the best of their knowledge and belief, and after reason-
able investigation: (a) neither the "Official Statement" nor any amendment or
supplement thereto contains any untrue statement of a material fact or omits to
state a material fact necessary to make the statements therein, in light of the cir-
cumstances 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 Authority since the date of such
"Official Statement".
The Official Statement, Official Notice of Sale and Official Bid Form will be approv-
ed as to form and content and the use thereof in the offering of the Bonds will be
authorized, ratified and approved by the Board of Directors 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.
•
GENERAL
Official Statement ... Upon award of the Bonds, the initial Purchaser may arrange
for the amendment and completion of the cover or page describing the Bonds in ac-
cordance 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 Purchaser and such information is not provided herein.
The Authority will furnish to the successful Purchaser of the Bonds 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.
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, 1615 National Bank of Commerce Building, San Antonio, Texas 78205,
• Financial Advisors to the Authority.
Attest:
Jerome T. -Brite
Secretary -Treasurer
Nueces River Authority
Date:
HARRY J. SCHULZ
President, Board of Directors
Nueces River Authority
The Board of Directors
Nueces River Authority
OFFICIAL BID FORM
PROPOSAL FOR ,
$13,000,000
NUECES RIVER AUTHORITY
WATER SUPPLY REVENUE BONDS'
SERIES 1979
(CITY OF CORPUS CHRISTI PROJECT)
Date���,
Gentlemen:
Subject to the terms of the Official Statement and Official Notice of Sale we
offer to pay par plus accured interest to date of delivery and a cash premium of
$ for Bonds bearing interest at the following rates:
Bonds Maturing Bonds Maturing Bonds Maturing
1981 % 1991 % 2001 %
1982 % 1992 % 2002 %
1983 % 1993 % 2003 %
1984 % 1994 % 2004 %
1985 % 1995 % 2005 %
1986 % 1996 % 2006 %
1987 % 1997 % 2007 a
1988 % 1998 % 2008
1989 % 1999 % 2009 %
1990 % 2000 %
We agree to accept delivery and make payment for the bonds without cost to
us at Bank, Austin, Texas; or at the
, and in accordance with the Official Notice of
Sale agree to pay all expenses.
Cashier's Check No. issued by
payable unconditionally to the Nueces River Authority, in the amount of $260,000
(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).
By
Account Manager
Accepted this
ATTEST:
Secretary - Treasurer
By
Authorized Representative
day of 1979.
President Board of Directors
Nueces River Authority
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 , 1979.
By
$ 13, 000, 000 NUECES RIVER AUTI-IORITY, TEXAS
WATER SUPPLY REVENUE BONDS
(CITY OF CORPUS CHRISTI PROJECT)
SERIES 1979
Accumulated
Year i Amount Bond Years
1981 $100, 000 200
1982 100, 000 500
1983 100, 000 900
1984 150, 000 1, 650
1985. 200, 000 2, 850
1986 200, 000 4, 250
1987 250,000 6,250
1988 250, 000 8, 500
1989 250, 000 11, 000
1990 300, 000 14, 300
1991 300, 000 17, 900
1992 350, 000 22, 450
1993 350, 000 27, 350
1994 400, 000 33, 350
1995 400, 000 39, 750
1996 450, 000 47, 400
1997 450, 000 55, 500
1998 500, 000 65, 000
1999 500, 000 75, 000
2000 550,000 86,550
2001 600, 000 99, 750
2002 650,000 114,700
2003 650,000 130,300
2004 700,000 147,800
2005 750,000 167,300
2006 800,000 188,900
2007 850,000 212,700
2008 900, 000 238, 800
2009 950,000 267,300
Average Maturity 20.5615 years
OFFICIAL STATEMENT
RELATING TO SALE OF
$13,000,000
NUECES RIVER AUTHORITY
(A Political Subdivision of the State of Texas)
WATER SUPPLY REVENUE BONDS, SERIES 1979
(City of Corpus Christi Project)
At
r-{
•
This Official Statement does not"constitute an offer to sell Bonds in any 0•
It sdiction to any person to whom it is unlawful to make such offer in such
jurisdiction. No dealer, salesman, or any other person has been authorized
to give any information or make any representation, other than those contain-
ed herein, in connection with the offering of these Bonds, and if given or made,
such information or representation must not be relied upon. The information
and expressions of opinion herein are subject to change without notice and neither
the delivery of this Official Statement nor any sale made hereunder shall, under
any circumstances, create any implication that there has been no change in the
affairs of the Authority since the date hereof.
TABLE OF CONTENTS Page
Nueces River Authority
Board of Directors
Consultants and Advisors
Official Statement
Proceeds From the Sale of These Bonds
Security For the Bonds
Maturity Schedule
Option Provision
The Project
Authorization and Issuance of the Bonds
Security
Reserve Fund
Debt Service Requirements
Summary of Certain Contracts
Nueces River Authority and City of Corpus Christi
Contract Among United States of America, City of Corpus Christi
and Nueces River Authority
Summary of Certain Provisions of the Bond Resolution
No Litigation
Legal Investment in Texas
Tax Exemption
Legal Opinion
Financial Consultants
Authenticity of Financial Information
Successful Bidder
Certification of Official Statement
CITY OF CORPUS CHRISTI WATERWORKS SYSTEM
Water Rates
Contract Between City of Corpus Christi and Lower Nueces River
Water Supply District
Rainfall
Annual Production Treated Water
Annual Production and Raw Water Sale
Waterworks System Revenue Debt
Comparative Waterworks System Operating Statement
Auditor's Letter
Water System Section of Financial Report for Year Ended July 31, 1978
•
ltsl l',J IU .L.A. AU 1 11Vto 1 1
• 300 East Main Street
Uvalde,.Texas 78801
(512) 278-6810
Nueces River Authority is an agency of the State of Texas, created in 1935
by the Texas Legislature, pursuant to the laws of the State of Texas, as set
forth in Article 8280-115, Vcrnon's Civil Statues, as amended, under the
Authority of Article XVI; Section 59 of the Texas Constitution. Authority has -
the power and the responsibility to develop and conserve the water resources
of the Nueces River Basin, consisting of 22 counties which lie wholly or partially
• within the basin, a total of about 16,000 square miles.
The Authority is governed by a Board of Directors composed of 21 members,
appointed by the Governor with the advice and consent of the Senate. Members
serve for a term of six years and until a successor is appointed and qualified.
The members' terms are staggered, with one-third of the directors taking
office on February 1st of each odd -numbered year.
Currently, Authority has no taxing power and operates without benefit of any
revenues from taxation. A tax at the rate of not to exceed 15 cents on each $100
of assessed valuation could be levied for maintenance and operating expenses
only if authorized by a favorable vote of the majority of the resident electors of
the Authority voting at the election.
Authority has issued Pollution Control Revenue Bonds for the purpose of con-
structing or improving various pollution control facilities for the benefit of
Asarco, Inc. , Reynolds Metals Company, and San Miguel Electric Cooperative,
Inc. The corporate entities agree to pay debt service on these bonds.
BOARD OF DIRECTORS
Name City County
Harry J. Schulz, President Three Rivers Live Oak
George P. Morrill, 1st Vice Pres. Beeville Bee
George A. Finley, IIl,2nd Vice Pres. Corpus Christi Nueces
Jerome T. Brite, Sec. -Treas Pleasanton Atascosa
George T. Jambers, Jr., Exec.
Committee Whitsett McMullen
Joe E. Briscoe Devine Medina,
John H. Burris Alice Jim Wells
Gus T. Canales Premont Jim Wells
O. D. Dooley Bracketville Kinney
Wm. R. Edwards Corpus Christi Nueces
Ray M. Keck, Jr. Cotulla La Salle
Leslie H. Laffere Uvalde Uvalde
C. A. Morris Crystal City Zavala
Joseph S. Morris San Antonio Bexar
Torn Reding Taft San Patricio
Vernon G. Schimmel Sandia Jim Wells
Ben M. Silva Carrizo Springs Dimmit
J. Bernard Vine Dilley Frio
John W. White Uvalde Uvalde
James M. Whitten Sinton San Patricio
Judge Allen Wood Corpus Christi Nueces
Lon C. Hill (Hon. Lifetime) Corpus Christi Nueces
General Counsel
Bond Counsel
Financial Advisors
Con Mims, Executive Director
CONSULTANTS AND ADVISORS
Hooper, Robinson & Moeller, Austin, Texas
McCall, Parkhurst & Horton, Dallas, Texas
M. E. Allison & Co., Inc. , San Antonio, Texas
OFFICIAL STATEMENT DATED . %)Z�,�„f) Y 1 I 1 7
merest Exempt, in the Opinion of Bond Counsel, from Present Federal Income
Taxes Under Existing Statutes, Regulations, Rulings and Court Decisions.
NEW ISSUE Rating: Moody's Investors Service
Standard & Poor's Corp.
•
$13,000,000
NUECES RIVER AUTHORITY
(A Political Subdivision of the State of Texas)
WATER SUPPLY REVENUE BONDS, SERIES 1979
(City of Corpus Christi Project)
Dated: April I, 1979 Denomination: $5, 000
Principal and semi-annual interest payable at Corpus Christi National Bank,
Corpus Christi, Texas, Trustee, or at the option of the holder at Mercantile
National Bank at Dallas, Dallas, Texas. Interest coupons payable April 1 and
October 1. First interest coupon payable October 1, 1979. Coupon bonds,
not registrable as to principal or interest.
?•
6,7v, oc>o -
N) PROCEEDS FROM THE SALE OF THESE BONDS plus $6,3A-3.85 heretofore advanced and
• $ 48f to be advanced by the City of Corpus Christi from funds on hand will be used to
pay part of the Local Sponsors' (The Authority and The City) share of advancement of funds
for the Project. Additional Bonds to provide funds to pay the balance of the Local Sponsors'
share will not be sold until needed. Neither a definite date or a definite amount can be
determined at this time, however, it is anticipated the Additional Bonds will be sold in
three or four years and the amount will be between $4 Million and $5 Million.
SECURITY FOR THE BONDS. The City of Corpus Christi is unconditionally required to
pay Trustee for the account of Authority amounts sufficient to pay the principal of and
interest on the Bonds and all other payments required of City by the Bond Resolution re-
gardless of whether or not Authority actually provides such water supply or whether or not
City actually receives and uses such water. Holders of the Bonds are entitled to rely on
this regardless of any other contracts or agreements between City and Authority or any
other party. The payments by City to the Trustee will be made by City solely from the
Gross Revenues of the City's Waterworks System as an operating expense of such System.
The Bonds will be special revenue obligations of the Authority payable solely from pay-
ments received from the City and Authority shall never have the right to demand payment
of the amounts due from funds raised or to be raised from taxation by City.
MATURITY SCHEDULE
Due Interest Yield or Due Interest Yield or
Amount April 1 Rate Price Amount April Rate Price
$100, 000 1981 $450,000 1996
100,000 1982 450,000 1997
100,000 1983 500,000 1998
150,000 1984 500,000 1999
200,000 1985 550,000 2000
200,000 1986 600,000 2001
250, 000 1987 650, 000 2002
250,000 1988 650,000 2003
250,000 1989 700,000 2004
300, 000 1990 750, 000 2005
300, 000 1991 800, 000 2006
350,000 1992 850,000 2007
350,000 1993 900,000 2008
400,000 1994 950,000 2009
400, 000 1995
OPTIONAL REDEMPTION PROVISIONS: All Bonds scheduled to mature on and after
April 1, 1990, shall be optional for redemption prior to their scheduled maturities,
in whole, or in part, at the option of the Authority, on any interest payment date at
redemption prices (expressed as a percentage of principal amount) plus accrued
interest to the redemption date as follows:
/0
•
Redemption Date
April 1, 1989 and October 1, 1989
April 1, 1990 and October 1, 1990
April 1, 1991 and October 1, 1991
April 1, 1992 and October 1, 1992
April 1, 1993 and October 1, 1993
April 1, 1994 and October 1, 1994
April 1, 1995 and October 1, 1995
April 1, 1996 and October 1, 1996
April 1, 1997 and October 1, 1997
April 1, 1998 and October 1, 1998
April 1, 1999 and on any interest
payment date thereafter
Redemption Price
105%
104-1/2%
104%
103-1/2%
103%
102-1/2%
102%
101-1/2%
101%
100-1/2%
100%
In case of the redemption of less than all the Bonds outstanding, the particular Bonds
to be redeemed shall be selected from all outstanding Bonds by lot.
PAYMENT RECORD: The Authority has never defaulted.
LEGALITY: The Attorney General of the State of Texas, and Messrs. McCall,
Parkhurst and Horton, Bond Counsel, Dallas, Texas. (Opinion
printed on the bonds; see Legal Opinions).
DELIVERY: Anticipated on or about y✓1, j, ;' q
Ratings: Rating applications have been made to Moody's Investors Service and
Standard & Poor's Corporation. Outcome of their determinations will
be made available as soon as possible.
TFJi PPOJECT.
*he "Choke Canyon Project" was authorized by Congress by Public Law
93-493 dated October 27, 1974, which authorized the Nueces River Reclamation
Project, Texas. On November 16, 1976, Texas Water Rights Commission (now
Texas Water Commission) issued Permit No. 3358, to Nueces River Authority
and the City of Corpus Christi in accordance with the Texas Water Code and the
rules and regulations of the Commission, authorizing the construction of the dam
and reservoir (The Project) and authorizing the City of Corpus Christi and Nueces
River Authority as the Local Sponsors to maintain the reservoir and dam to divert
and use appropriated state waters. (See litigation below). The Bureau of Reclama-
tion executed a contract on June 30, 1976 with the City of Corpus Christi and Nueces
River Authority providing for repayment of reimbursable costs and advance fund-
ing of part of the costs of the Project.
The Project will consist of a zoned earthfill dam with a 700, 000 acre-foot re-
servoir at the Choke Canyon site on the Frio River. The Choke Canyon damsite
is about four miles west of the town of Three Rivers and about ten miles above the
confluence of the Frio and Nueces Rivers. The reservoir will be located in both
Live Oak and McMullen Counties.
Choke Canyon Reservoir will have a controlled capacity of approximately
700, 000 acre feet at elevation 220.5, consisting of 22,700 acre-feet for 100 years
of sediment deposition and 677, 300 acre-feet for municipal and industrial water
supply.
At elevation 220.5 feet (top of conservation pool), the reservoir will have a
surface area of about 26, 000 acres and will extend upstream about 34 miles. The
maximum width of the reservior will be about 5 miles.
The spillway will be located on the left abutment. It will be equipped with
seven radial gates, each 50 feet wide and 24 feet high, with gates sills at eleva-
tion 199.5 feet (60.8M) and top of gates at elevation 222.5 feet (68.1M). The spill-
way is designed so that the maximum probable flood will pass through the reservoir
without endangering the safety of the dam. Routing of the maximum probably flood
through the reservior derives a maximum water surface of elevation 233 feet
(71. OM).
A multilevel intake structure for the river outlet works will be provided to
allow water of different temperatures, nutrient values, and dissolved oxygen con-
tents to be released as necessary for fish and wildlife downstream.
•
411lith a maximum water surface elevation of 233 feet, it is estimated that about
37, 000 acres of land will be acquired in fee title for the dam, reservior, and con-
struction areas. The plan involves the use of approximately 2,360 acres of land
for sport fishing and recreational purposes.
No electric power generating facilities are included in the Project because the
release of water for hydro -electric power generating is not compatible with release
of water for water supply purchases.
The Bureau of Reclamation had estimated that under conditions in the year 2010
the combined dependable yield of the reservior at Choke Canyon operated in con-
junction with the existing reservoir at Wesley Seale Dam will be approximately
252, 000 acre feet per year.
Construction Status: In August, 1978 the Bureau of Reclamation awarded a con-
tract to Holloway Companies, Wixom, Michigan, for construction of the dam. The
contractor to date has completed his office, machine shop facilities, and aggre-
gate processing plant on the site. Stripping of the dam embankment foundation
and spillway channel and a diversion channel to reroute the Frio River around
the work area have been completed. Work on relocation of State Highway 72
around the project site is underway.
Land acquisition was begun in June, 1976. All land has been purchased for
the dam site and for highway relocations. Land purchases upstream from the -
dam are under way. A new Calliham Townsite will be established by the United
States south of the present site.
Archaeological investigations have been underway since June, 1977. Other en-
vironmentally -oriented contracts have been completed, including a vegetation re-
source investigation, a uranium and lignite study, and a conceptual master plan
and environmental assessment for recreation development of Choke Canyon Reser-
voir. Oil well plugging has commenced under the jurisdiction of the Texas Rail-
road Commission.
As °f aar uar5 1, 1978
All known required State and Federal permits have been obtained. ti-
1{.� aicd coa5
mates- indicate the entire cost of the project vtLil -lae about $93 million. Target date
for completion of the dam is April, 1982.
/.3
•
Litigation (The following has been supplied by the Legal Department' of the City of
Corpus Christi)
"A group of McMullen County landowners, joined by McMullen County, have appeal-
ed the decision of the Texas Water Rights Commission granting the application of
the City of Corpus Christi and the Nueces River Authority for a permit to appropriate
water from the Nueces River Project for municipal, industrial, recreation and stock
raising purposes for use in a nine -county region in the lower Nueces River Basin and
the adjacent coastal areas.
The District Court of Travis County, Texas affirmed the Commission's order grant-
ing the application and the case is now pending before the Court of Civil Appeals, 12th
Judicial District of Tyler, Texas. Oral argument will take place before that court on
April 23, 1979; however, a decision is not expected until well into 1979. The appeal
is based on technical grounds having to do with jurisdiction, evidence, notice, im-
pairment of existing water rights and vested riparian rights. Appeal of the permit
has in no way delayed purchase of the land and construction of the dam, both of which
have been underway for some time. In the unlikely event that the permit should be
set aside, the City and the River Authority would apply for another permit.
Even if the Courts sent the case back to the Commission to reconsider issuance of a
permit, in view of prior favorable action by the Commission in approving the project
and designating Corpus Christi and NRA as local sponsors, it is not deemed likely
that the Commission would change its mind about issuing the permit."
PROJECT COST BREAKDOWN
(1-1-78 estimate rounded to $1,000)
Land and Rights
Relocations
Dam and Spillway
Clearing and Fencing
Permanent0perating Facilities
Recreation Facilities
Fishing Facilities
Stream Monitoring
Engineering, Other Contracts
Total
COST ALLOCATIONS
As of January 1, 1978
-(rounded to nearest $1,000)
Reimbursable
Costs
$ 19,063,000
10,133,000
34,000,000
1,770,000
208,000
16,613,000
477,000
232,000
10,582,000
$ 93,078,000
Non -Reimbursable
Costs
Total
Municipal and Industrial (69.195%) $ 53,315,000
Recreation (27.553%) 7,996,000
Fish and Wildlife (3.252%) 113,000
Pre -Authorization Investigation
Cultural Resource Activities (PL -93-291)
Highway Improved Standards (PL -87-874)
Total $ 61,424,000
(continued on page 14A)
27,154,000
2,608,000
242,000
850,000
800,000
$ 31,654,000
$ 53,315,000
35,150,000
2,721,000
242,000
850,000
800,000
$ 93,078,000
The reimbursable costs will be provided by Authority and City through initial
advances and annual payments after project completion.
Initial Advances (23.0769%) $ $ 21,479,517
Previously Paid by City 6,737,000
To Be Paid By City 4,542 517
Total by City 11,279,517
Balance by Authority from this Sale $ 10,200,000(1)
The remaining $39,944,483 (Reimbursable Costs of $61,424,000 less initial advances
of $21,479,517) plus interest during construction (approximately $5,000,000) and
interest on the unpaid balance at 5.116% less certain interest to be forgiven will
be paid by City after project completion for 40 years for M and 1 and 50 years for
Recreation and Fish and Wildlife allocated costs.
(1) Remainder of $13,000,000 to establish reserve and offset cost increases.
FEDERAL APPROPRIATIONS
FY 1977 $ 3,500,000
FY 1978 18,710,000
FY 1979 16,540,000
Total $ 38,750,000
FY 1980 (Proposed by President) 15,470x000
Total - Actual & Proposed $ 54,220,000
After 1980 17,378,483
Total Initial Federal Cost $ 71,598,483
Plus Local Advances 21,479,517
Total 1-1-78 Estimated Cost $ 93,078,000
►d R
• AUTHORIZATION AND ISSUANCE'OF THE BONDS ' •
The Bonds are issued in the aggregate principal amount of $ 13, 000,000
in accordance with the provisions of the Constitution and Statutes of the
State of Texas, including Article 16, Section 59 of the Texas Constitution,
and Acts 1975, 64th Legislature, Chapter 699, for the purpose of providing
part of the funds to construct a reservoir and related facilities for conserv-
ing, transporting and distributing water. -
SECURITY
The principal of and interest on the Bonds shall be paid from and
secured by a first lien on and pledge of the Contract Payments for
Debt Service and the holders of the Bonds shall never have the right
to demand payment out of any funds of the Authority. The City of
Corpus Christi is unconditionally required to pay Trustee for the account
of the Authority amounts sufficient to pay the principal of and interest
on the Bonds and all other payments required of City by the Bond Re-
solution regardless of whether or not Authority actually provides such
water supply or whether or not City actually receives and uses such
water. Holders of the Bonds are entitled to rely on this regardless of
any other contracts or agreements between City and Authority or any
other party. The payments by City to the Trustee will be made by City
solely from the Gross Revenues of the City's Waterworks System as an
operating expense of such System. The Bonds will be special revenue
obligations of the Authority payable solely from payments received from
the Qty, and Authority shall never have the right to demand payment of
the amounts due from City from funds raised or to be raised from taxa-
tion by City.
RESERVE FUND
From the proceeds of the Bonds, and from the proceeds of Additional
Bonds, there shall be deposited into the Reserve Fund an amount equal to
the maximum amount required to pay the interest on and the principal of
all outstanding Bonds as such interest becomes due and the principal there-
of matures in any future Fiscal Year. Should the amount on deposit in said
Fund ever be less than required, the Authority shall replace any deficiency
therein in not more than ten (10) equal installments by making transfers in the
necessary amounts into said Fund on or before each March 25th and Septem-
ber 25th of the Fiscal Year following the Fiscal Year in which the deficiency
occured. Monies in the Reserve Fund shall be used to pay the last of the
Bonds outstanding.
r�
DEBT SERVICE REQUIREMENTS
Fiscal Interest
Year Ending Estimate
8-31 Principal @ 6 1/2% Total
1980 $ $845, 000 $845, 000
1981 100,000 845,000 945,000
1982 100,000 838,500 938,500
1983 100,000 832,000 932,000
1984 150, 000 825, 500 975, 500
1985 200,000 815,750 1,015,750
1986 200,000 802,750 I,002,750
1987 250,000 789,750 1,039,750
1988 250, 000 773, 500 I, 023, 500
1989 250,000 757,250 1,007,250
1990 300,000 741,000 1,041,000
1991 300,000 721,500 1,021,500
1992 350,000 702,000 1,052,000
1993 350,000 679,250 1,029,250
1994 400,000 656,500 1,056,500
1995 400, 000 630, 500 1, 030, 500
1996 450, 000 604, 500 1,054, 500
1997 450, 000 575, 250 1, 025, 250
1998 500,000 546,000 1,046,000
1999 500, 000 513, 500 1, 013, 500
2000 550,000 481,000 1,031,000
2001 600,000 445,250 1,045,250
2002 650,000 406,250 1,056,250
2003 650,000 364,000 1,014,000
2004 700,000 321,750 1,021,750
2005 750,000 276,250 1,026,250
2006 800,000 227,500 1,027,500
2007 850,000 175,500 1,025,500
2008 900, 000 120, 250 1, 02Q, 250
2009 950,000 61,750 1,011,750
Maximum Annual Requirement - 1994 $1, 056, 500
Average Annual Requirement 1980/2009 1, 012, 483
Average Annual Requirement 1985/2009 1, 029, 540
Average Annual Requirement 1980/1984 927,200
Average Life of Bonds 20.56 years
Interest calculated at 6 1/2% for purposes of illustration.
/'6
• SUMMARY OF CERTAIN CONTRACTS •
NUECES RIVER AUTHORITY AND CITY OF CORPUS CHRISTI. On• May 27, 1976
Authority and City entered into a contract, which among other things, provided that
Authority and City (Local Sponsors) would enter into a contract with the United
States of America acting through the Bureau of Reclamation to construct the Project.
The contract with the Bureau was executed on June 30, 1976 and, among other things,
provides that the City is obligated to furnish part of the funds required for advance
payments for construction of the Municipal and Industrial Water Supply portion of
the Project, and Authority will issue its Revenue Bonds to provide the additional
funds for the balance of the required advance payments. City is obligated to pay
Trustee for the account of Authority amounts sufficient to pay the principal of and
interest on the Bonds, and all other payments required by the Bond Resolution.
Payments by the City to the Trustee are to be made regardless of whether or not
Authority actually provides such water, or whether or not City actually uses and
receives such water. Holders of the Bonds are entitled to rely on this regardless
of any other contracts or agreements by the Authority and City, or any other
parties. The payments by City to Trustee shall be made by City from the reve-
nues of the City's Waterworks Sys tem as an Operating Expense of such System.
Parties to the contract agree that as between themselves water permits related
to the Project, including the right to impound water in the Project's reservoir
and the uses therefrom for any purpose, shall be owned in perpetuity by City and
Authority as tenants in common, with City owning and holding an undivided 80%
interest therein and the Authority owning and holding an undivided 20%.
For services rendered and to be rendered by Authority during the pre -operating
phase, the City will pay Authority the following amounts: 1976 $25, 000, 1977
$25, 000, 1978 $35, 000, 1979 $35, 000, 1980 $40, 000, increasing $5, 000 per year
until the end of the pre -operating period. Amounts in excess of $40, 000 per
annum will only be due if they are specifically requested by Authority's Board
of Directors and if the Board certifies that the amount in excess of $40, 000 is
necessary for operating expenditures of Authority, but such total payment shall
not exceed $100,000.
1. SUPPORTING SERVICES
(a) The contract recognizes that the Authority has heretofore rendered special
services and will continue to do so during the life of the Project in water resource
and water quality planning for the entire Nueces River Basin, and also in assisting in
financing the Project, all of which are of direct benefit to City, its inhabitants and
water customers.
(b) In consideration for such services and for Authority's 20% undivided interest
in the Project water, City agrees to pay Authority during the operating phase the
greater of the following:
(1)
(2)
The sum of $100,000 per calendar year without any escalation for cost
of living or otherwise, or;
$1.00 per million gallons of water for all raw water sold or used each
calendar year for municipal and industrial purposes for the Project and
Lake Corpus Christi including raw water used by the City but excluding
any water released for the bays and estuaries and any other water re-
leased to the stream but not sold; the rate of $1.00 per million gallons
of water shall be adjusted each calendar year by an amount equal in
percentage to the percentage rise in the U. S. Consumer Price Index
(or the cost -of -living index which in the future may replace or super -
cede the U. S. Consumer Price Index) in the calendar year in question,
with the Consumer Price Index for 1976 being the Index on which such
adjustments shall be based. Authority may use the income from such
payments for any lawful purpose as Authority may determine, including
without limitation the general operating and administrative expenses of
Authority.
s
2. OPERATION OF PROJECT
City shall be responsible for the care, operation, and maintenance of the Project
and any additional facilities unless responsibility therefor is transferred to
Authority by amendment to this Contract. The care, operation, and maintenance
of the Project and additional facilities shall be carried out in compliance with the
applicable requirements of the United States, the Commission, and other govern-
mental agencies having jurisdiction,and in compliance with the requirements of
the Federal Contract and this Contract.
The timing and rate of diverting, releasing or taking Project Water for any purpose
shall be controlled and directed by City. (City operates and maintains the Wesley
Seale Dam.)
3. WATER SALES
For the life of the Project, City shall have the right to dispose of all of the water
produced by the Project whether operated as an individual unit or in system with
Lake Corpus Christi. All water sales shall be contracted by City; provided, how-
ever, if future circumstances warrant, the parties may, by separate mutual agree-
ment, establish conditions and procedures under which Authority may contract for
the sale of water.
4. RATES
City covenants it will fix, charge and collect rates for sale of water in such amounts
as will produce revenues sufficient to provide (1) for making all payments required
to be made by City under the contract and (2) for making payment of other costs of
operating and maintaining the waterworks system, and (3) for making payment of
principal and interest on all bonds heretofore or hereafter issued by the City and
payable from the net revenues of such system.
CONTRACT AMONG UNITED STATES OF AMERICA, CITY OF CORPUS CHRISTI
AND NUECES RIVER AUTHORITY
The Reclamation Development Act of 1974 (Public Law 93-493, Sections 1001-1005),
88 Stat. 1486, 1496-1497 (1974), authorized construction, operation and maintenance
of Nueces River Project, also known as Choke Canyon Project.
Construction of the Project will be financed jointly between United States, City of
Corpus Christi, and Nueces River Authority. City of Corpus Christi and Nueces
River Authority are the Local Sponsors.
1-4,542,5-J7
Advances for part of the reimbursable costs arc payable to United States during the
construction period. The City of Corpus Christi has heretofore paid appvixt-inzate)y
.535=t -B5 and will pay approxi oly $44-1.80 more from funds on hand. Under
the contract between the Authority and City of Corpus Christi, Authority will issue
its revenue bonds (The Bonds) to provide funds for the payment of the remainder of
such advance costs. The City agrees to pay the remaining reimbursable project con-
struction costs, and the principal of and interest on the Authority's bonds.
The payments due under provisions of this contract shall be secured by a pledge of:
(1) The revenues of the City's waterworks system remaining after paying all ex-
penses of 0 S M of said system, including payments made to Authority by City under
terms of agreement between Contractors executed February 18, 1976, as amended,
all debt service, reserve, and other requirements in connection with City's Water-
works System's revenue bonds now or hereafter outstanding; however, the City shall
not be required to raise funds through taxation to meet its obligations under this
contract; and
(2) The net revenues, if any, from the sale of Project water by the parties hereto
outside the City's waterworks system.
ie payment of all charges becoming due hereunder to the United States is a condi.-
tion precedent to receiving benefits under this contract. No water will be made
available through Project facilities during any period in which arrearages exist in
the advance payment of any 0 & M charges due the United States or payments are
in arrears for more than 12 months on any construction charges due the United
States. -
The remaining reimbursable costs are approximately 65.30% of total Project costs
(excluding $657,000 for Archeology), allocated as follows: Municipal and Industrial
Water Supply Allocation 69. 195%, Recreation Allocation 27.553%, and Fish & Wild-
life Allocation 3.252%.
Reimbursable costs for the Recreation allocation and the Fish & Wildlife allocation
are to be made in fifty annual payments commencing on the first year after the year
in which such Project works are, as announced by the Contracting Officer, suffi-
ciently completed to permit use of the Project facilities, and water is available, if
such notice is given prior to August 1st; otherwise to commence the second year
after such notice is given. Repayment of the Recreation allocation and the Fish &
Wildlife allocation may be derived entirely from gross revenues received from en-
trance and user fees or charges collected for the use of such Recreation and Fish
& Wildlife facilities of the Project. As an alternative to making payments from
entrance and user fees, the Local Sponsors may apply water revenues or any other
funds available to meet the scheduled payments. Reimbursable costs for the
Municipal and Industrial water supply allocation shall be paid in forty annual install-
ments, the first of which shall become due on August 1st of the year after the year
in which the Project works are, as announced by the Contracting Officer, sufficiently
complete to permit the use of the Project facilities and water is available, if such
notice is given prior to August 1st; otherwise to commence in the second year after
such notice is given.
I°
•
SUMMARY• OF •
CERTAIN PROVISIONS OF THE BOND RESOLUTION
Definitions
"Additional Bonds" - Bonds issued on a parity with the Bonds pursuant to the
• terms of this Resolution.
"Authority" - Nueces River Authority and any other public body or agency at
any time succeeding to the property rights, powers and obligations thereof.
"Board" or "Board of Directors" - The duly appointed and acting Board of
Directors of the Authority.
"Bond" or "Bonds" - One or more of the Bonds, as the case may be, authorized
by the Resolution.
"City" - The City of Corpus Christi, Texas.
"City Manager" - The duly appointed and acting City Manager of the City.
"Construction Fund" - The fund by that name.
"Contract" - The contract between the Authority and the City dated the 27th
day of May, 1976, as heretofore or hereafter supplemented or amended.
"Contract Payment Fund" - Nueces River Authority Contract Payments for
Debt Service Fund.
"Contract Payments for Debt Service" - The payments made by the City to the
Authority pursuant to the Contract as are necessary to pay the principal and/or
interest on the Bonds, make deposits in the Reserve Fund or other Funds as may
be required by the Bond Resolution.
"Consulting Engineers" - The independent engineer or engineering firm or
corporation employed by the Authority.
"Costs of the Project" - Payments to be made by the Authority as advances
to the United States pursuant to the Federal Contract.
"Executive Director" - The duly appointed and acting Executive Director.of
the Authority.
"Federal Contract" - The contract by and among the United States of America,
the City and the Authority, dated June 30, 1976,.providing for the construction,
operation and maintenance of the Project and entitled "Contract Among the
United States of America, City of Corpus Christi, Texas, and the Nueces River
Authority, Nueces River Reclamation Project, Texas".
"Financial Advisor" - M. E. Allison ii Co., Inc., San Antonio, Texas, or
its successor.
"Fiscal Year" - The twelve month period beginning September 1 of each calen-
dar year.
"Interest and Sinking Fund" - Nueces River Authority Water Supply Revenue
Bonds Interest and Sinking Fund.
"Investment Securities" - Direct obligations of, or obligations the principal
of and the interest on which are unconditionally guaranteed by, the United
States Government, Federal Intermediate Credit Banks, Federal Land Banks,
Federal National Mortgage Association, Federal Horne Loan Banks or Banks
for Cooperatives.
ao
•
"Paying Agent", "Paying Agents" - As the case may be, Corpus Christi
National Bank, Corpus Christi, Texas, and/or Mercantile National Bank at
Dallas, Dallas, Texas, or their successors.
"Project" - All features comprising the Nueces River Reclamation Project,
Texas, authroized by the act of Congress approved October 27, 1974 (Public Law
93-493), and constructed or provided under the terms of the Federal Contract;
also know as the Choke Canyon Reservoir Project.
"Reserve Fund" - Nueces River Authority Water Supply Revenue Bonds Re-
serve Fund.
"Resolution" - This resolution, as may be amended.
"Trustee" - Corpus Christi National Bank, Corpus Christi, Texas, a national
banking association organized and existing under the laws of the United States,
with its principal office in Corpus Christi, Texas, or its successor.
"United States" - The United States of America.
Additional Bonds
One or more series of Bonds, on a parity with and in addition to the Series 1979
Revenue Bonds, may be authenticated and delivered for the purpose of providing
additional funds to complete the Project. After the original authentication and
delivery of the aggregate authorized principal amount of Bonds of any such series
no additional Bonds shall be authenticated and delivered under such series designation.
Bonds of each series shall be authorized by a resolution or resolutions of the Board
of Directors, which shall specify:
(1) The authorized principal amount of such series, the designation there-
of, and the directions for delivery of the Bonds to or upon the order of the pur-
chasers therein named upon payment of the purchase price therein set forth;
(2) The purpose or purposes for which such series of Bonds is being issued;
(3) The date of such series and maturity dates of the Bonds thereof, pro-
vided that every maturity date shall fall on April 1;
(4) The interest rate or rates of such Bonds, and the interest payment dates
therefor, provided that the interest rate shall be identical for all Bonds of like
maturity and the interest payment dates shall be semi-annual and shall be iden-
tical for all Bonds of a series;
(5) The redemption terms, if any, for such Bonds; and
(6) Any other matters deemed appropriate or necessary and not inconsistent
with the provisions of this Resolution.
Such Bonds may be authenticated, delivered and paid for in installments of less
than the total authorized principal amount of a series from time to time as the
Authority may direct.
Pledge and Funds
Pledge. The principal of and interest on the Bonds shall be paid and secured by
a first lien on and pledge of the Contract Payments for Debt Service, and said lien and
pledge are hereby irrevocably created, and the holders of the Bonds shall never have
the right to demand payment thereof out of any other funds of the Authority.
Funds. (a) The following special funds of the Authority are hereby created with
the Trustee, to -wit:
(i) the "Nueces River Authority Contract Payments for
Debt Service Fund" (the "Contract Payment Fund");
(ii) the "Nueces River Authority Water Supply Revenue
Bonds Interest and Sinking Fund (the "Interest and
Sinking Fund");
(iii) the "Nueces River Authority Water Supply Revenue
Bonds Reserve Fund" (the "Reserve Fund").
(b) All moneys in said Funds are pledged to the purposes expressed herein.
as
(c) All of said Funds created, continued or re-established shall be kept with the
Trustee.
Contract Payment Fund. All Contract Payments for Debt Service shall be de-
posited by the Trustee as received into the Contract Payment Fund.
Flow of Funds. Moneys on deposit in the Contract Payment Fund shall be trans-
ferred by the Trustee in the following sequence and order of priority and on the
following dates, to -wit:
(a) The Trustee shall transfer to the Interest and Sinking Fund -
(i)
beginning on or before September 25, 1979, and on or before
each March 25 and September 25 thereafter such amounts
as will be sufficient to pay the interest on the Bonds on the next
interest payment date thereof; and
(ii) beginning on or before September 25, 1980, and on or before
each March 25 and September 25 thereafter through March 25,
2009, one-half of such amounts as will be sufficient to pay the
principal of the Bonds maturing on the next April 1.
(b) So long as the amount on deposit in the Reserve Fund equals or exceeds a
sum equal to the amount required to pay the interest on and principal of the Bonds
outstanding during the Fiscal Year such payments are the greatest, no transfers
into the Reserve Fund shall be required under this paragraph (b). However, should
the amount on deposit in said Fund ever be less than a sum equal to the amount re-
quired to pay the interest on and principal of the Bonds outstanding during the Fiscal
Year such payments are the greatest, the Authority shall replace any deficiency there-
in in not more than ten (10) equal installments by making transfers in the necessary
amounts into said Fund on or before each March 25 and September 25 beginning with
the March 25 of the Fiscal Year following the Fiscal Year in which the deficiency
occured.
Use of Interest and Sinking Fund. Monies on deposit in the Interest and Sinking
Fund each year shall be used solely and exclusively first for the purpose of paying
the interest on and principal of the Bonds as such interest comes due and the princi-
pal thereof matures; or for the purpose of calling and redeeming Bonds prior to
maturity at the applicable redemption price and/or for the purpose of purchasing
Bonds in the open market for retirement for prices not greater than the par value
plus accrued interest of any Bonds thus purchased or if redeemable prior to stated
maturity, not greater than the redemption price on the next succeeding redemption
date. No purchases shall be made of Bonds with monies in the Interest and Sinking
Fund which would result in not having sufficient monies therein to pay Bonds at
their stated maturities. The Trustee timely shall make available the funds on de-
posit therein to the Paying Agents for such purposes. At such time as the monies
and investments in the Interest and Sinking Fund and the Reserve Fund shall equal
the aggregate principal amount of the Bonds outstanding and interest thereon to
stated maturity dates of such Bonds, or if any of such Bonds shall be redeemable
prior to stated maturity, the interest thereon to such redemption dates and any
applicable premium, no further transfers shall be made to the Interest and Sinking
Fund.
Use of Reserve Fund. For so long as any of the Bonds shall be outstanding the
Reserve Fund shall be held as a reserve for the payment of principal of and interest
on the Bonds when and if monies on deposit in the Interest and Sinking Fund shall not
be sufficient for such purpose. If such deficiencies occur, the Autherity'shall
transfer money on deposit in the Reserve Fund to the Interest and Sinking Fund for
the uses specified for that Fund. The monies in the Reserve Fund shall be used to
pay the last of the Bonds outstanding.
a3
�rity and Investment of Funds. The Trustee will sectire and keep secured,
in the manner required by law, all cash funds on deposit with it, and vyill cause the
Paying Agents to secure all funds deposited with them as other trust funds are se-
cured. So long as the Trustee and the Paying Agents are national banks, their com-
pliance with Section 9. 10 of Regulation 9 of the Comptroller of the Currency of the
• United States Treasury shall constitute compliance with this Section. The Trustee
shall invest the monies in the Interest and Sinking Fund, the Reserve Fund, and the
Contract Payment Fund fully and continuously in Investment Securities or Certifi-
cates of Deposit of State and National Banks which shall be lawfully insured or se-
cured by Investment Securities, all in accordance with resolutions from time to
time adopted by the Board, approved by the City and delivered to the Trustee. Such
investments shall be converted to cash only at the times monies are needed for pay-
ments required by this Resolution. All interest and income on such investments as
realized shall be deposited into the Contract Payment Fund.
•
a 5�
Bond Proceeds and the Construction Fund
Construction Fund. A special fund is hereby established with the Trustee to be
entitled the "Construction Fun".
Bond Proceeds. The proceeds of the Bonds shall be received by the Trustee, and
shall be deposited or paid out as follows: (1) to the credit of the Interest and Sinking
Fund, the interest accrued, if any, on the Bonds to date of delivery to the purchasers
thereof, (2) to the Reserve Fund, an amount equal to the maximum amount to pay the
interest on and principal of all outstanding Bonds in any Fiscal Year, (3) to the
Authority for payment of the costs of issuance of the Series 1979 Bonds, and (4) to
the Construction Fund, the balance.
Use of Monies. (a) The Authority shall apply monies in the Construction Fund
to the Costs of the Project. All payments from the Construction Fund shall be subject
to the provisions and restrictions set forth herein, and the Trustee shall not cause or
permit to be paid from the Construction Fund any sums except in accordance with such
provisions and restrictions. -
(b) The Trustee shall invest funds held in the Construction Fund in Investment
Securities unless otherwise directed by the Board. Such obligations together with the
interest thereon, shall be held in and shall at all times be a part of the Construction
Fund. Any income derived from and any profit or loss on any such investment of
monies on deposit in the Construction Fund shall be credited or debited, as the case.
may be, to the Construction Fund.
Payment on Bends. Notwithstanding any other provisions herein, to the extent
that other monies are not available therefor, amounts in the Construction Fund shall
be applied to the payment of principal and interest on the Bonds when due.
Disbursements From Construction Fund. Before any monies shall be withdrawn
or any payments shall be made from the Construction Fund which directly relate to the
physical construction and equipment thereof there shall be filed with and approved by
the Trustee --
(a) A voucher which may contain any number of items signed by the Executive
Director and the City Manager stating in respect of each item to be paid --
(1) the item number of the payment;
(2) the amount or amounts to be paid; and
(3) the purpose for which the obligation is to be paid; and
(b) A certificate signed by the Executive Director and the City Manager and ore o,oed
attached to the voucher certifying that the obligations in the stated amounts n.
1 e k€r -by the Authority as advances to the United States pursuant to. the Federal
Contract and that each item thereof is a proper charge against the Construction Fund
and has not been paid.
d� '
•
If the Trustee shall determine that such voucher and certificate are in the form and
contain the information required herein, it shall be authorized to make payment
thereof.
Completion of the Project. When the Project shall have been completed in ac-
cordance with the plans and specifications, and when all amounts due shall have been
paid, the Executive Director and the City Manager shall file with the Trustee a certi-
ficate so stating, and thereupon the Trustee shall cause the transfer of all monies
remaining in the Construction Fund, if any, to the Interest and Sinking Fund.
CERTAIN'GENERAL COVENANTS
INSC!RAN CE:
The Authority will or will cause the City at all times to keep insured with a
responsible insurance company or companies, such of the plants, structures,
buildings, stations, machinery and equipment of the Project against risks of
accidents or casualties against which insurance is usually carried by similar
governmental entities operating like properties, and will also maintain or cause
the City to maintain insurance against public liability and property damage in a
reasonable amount, provided such insurance can be procuredat reasonable cost,
and maintain workmen's compensation insurance with a responsible insurance
company or companies or a state -approved workmen's compensation plan or pro-
gram. However, at any time while any contractor engaged in the construction
shall be fully responsible therefore, the Authority shall not be required to carry
or cause to be carried any of the foregoing insurance.
REVIEW AND INSPECTION OF PROJECT WORKS FOR DETERMINING ADEQUACY
OF MAINTENANCE:
The Authority recognizes that the Federal Contract provides that a representa-
tive of the United States with a representative of the Authority and the City may,
from time to time, review the maintenance of the Project being operated by the
Authority and the City to determine the condition of the Project and adequacy of
the maintenance program. A report of the review including recommendations, if
any, will be prepared by the United States and copies will be furnished to the
Authority and the City. If deemed necessary by the United States or the Authority
and the City, special inspections of the Project and the books and records being
maintained will be made by the United States to ascertain,in the event of any
operation and maintenance deficiency,remedial measures required for correction
or to assist the Authority and City in solving specific problems. Any such in- 4-4,,
spection or audit shall, except in the case of emergency, be made Aar written notice
to the Authority and the City, and the actual cost thereof shall be paid by the Auth-
ority and the City to the United States. Should this arrangement for reviews and
inspections be terminated for any reason, while any of the Bonds is outstanding,
the Authority will employ or cause to be employed, a Consulting Engineer to give
all necessary or desirable advice and recommendations to the end that the Project
shall be operated and maintained in the most efficient and satisfactory manner.
Further, the Authority shall cause the Consulting Engineer to make in writing a
review and report on the physical condition of the Project works once every three
years, including their recommendations as to (1) the proper maintenance, repair
and operation of the Project, including their findings as to whether or not pro-
perties have been maintained in good repair and sound operating condition; and
(2) the improvements, renewals and replacements which should be made. A copy
of such report and review shall be filed with City and the Authority.
BOOKS & RECORDS:
The Authority will keep or cause to be kept proper books of record and account
in which full, true and correct entries will be made of all income, expenses and
transactions of and in relation to the Project and each and every part thereof in
accordance with accounting practices recommended by the National Committee on
Governmental Accounting and within ninety (90) days after the close of each Fiscal
Year the Authority will furnish to the City, the Municipal Advisory Council of
Texas, the Financial Advisor, and any holder of Bonds who may so request a sign-
ed or certified copy of a report by a Certified Public Accountant covering the pre-
ceding Fiscal Year.
•
•INSPECTION:
That the•holder or holders of any Bonds or Additional.Bonds or any duly
authorized agent or agents of such holders, shall have the right at all
reasonable times to inspect all such records, accounts and data relating
to the Authority and the Project, and to inspect the Project and all pro-
perties comprising same.
LEGAL AUTHORITY:
The Authority represents that it is a conservation and reclamation dist-
rict, and a governmental agency and body politic and corporate, duly creat-
ed, organized and existing under the Constitution and laws of the State of
Texas and has proper authority from all other public bodies and authorities,
if any, having jurisdiction thereof to construct, acquire, operate, maintain,
repair, renew and replace the Project; that it will ar all times
maintain its corporate existence and maintain a lawful power to pledge the
revenues supporting the Bonds; that all corporate action on its part to that
end has been duly and validly taken; and that the Bonds issued hereunder
shall be ratably secured under said pledge in such manner that one Bond
shall have no preference over any other Bond of said issue.
NO SALE OR ENCUMBRANCE:
T5Irrotlhe Authority covenants that in no event while any of the Bonds or
interest thereon remains outstanding and unpaid, shall the Authority sell,
mortgage, lease or otherwise dispose of its interest in the Project, or any
substantial part thereof, nor shall the Authority further encumber the Con--
tract
on—tract Payments for Debt Service in any manner except in accordance with
this Section, or unless such encumbrance shall be made junior and sub-
ordinate in all respects to the lien and pledge herein created for the bene-
fit of the Bonds and the interest thereon.
NO ARBITRAGE:
The Authority covenants to and with the purchaser of the Bonds that it
will make no use of the proceeds of the Bonds at any time throughout the
term of this issue of Bonds which, if such use had been reasonably ex-
pected on the date of delivery of the Bonds to and payment for the Bonds
by the purchasers, would have caused the Bonds to be arbitrage bonds
within the meaning of Section 103 (c) of the Internal Revenue Code of
1954, as amended, or any regulations or rulings pertaining thereto; and
by this covenant the Authority is obligated to comply with the require-
ments of the aforesaid Section 103 (c) and all applicable and pertinent
Department of the Treasury regulations relating to arbitrage Bonds. The
Authority further covenants that the proceeds of the Bonds will not other-
wise
be used directly or indirectly so as to cause all or any part of the
Bonds to be or become arbitrage Bonds within the meaning of the afore-
said Section 103 (c), or any regulations or rulings pertaining thereto.
•
.8"
AMENDMENT OF RESOLUTION
•
The holders of Bonds aggregating in principal amount of three-fourths of
the aggregate principal amount of Bonds and Additional Bonds at the time out-
standing (not including in any case any such bonds which may then be held or owned
by or for the account of the Authority) shall have the right from time to time to
approve an amendment of this Resolution which may be deemed necessary or desirable
by the Authority, provided, however, that without the consent of the holders of all
of the outstanding Bonds, nothing herein contained shall permit or be construed to
permit the amendment of the terms and conditions contained in this Resolution or
in the Bonds so as to:
(1)
Make any change in the maturity of the outstanding Bonds or
Additional Bonds;
(2) Reduce the rate of interest borne by any of the outstanding
Bonds or Additional Bonds;
(3)
Reduce the amount of the principal payable on the outstanding
Bonds or Additional Bonds;
(4) Modify the terms of payment of principal of or interest on the
outstanding Bonds or Additional Bonds or any of them, or impose
any conditions with respect to such payment;
(5)
Affect the rights of the holders of less than all of the Bonds
or Additional Bonds then outstanding;
(6) Change the minimum percentage of the principal amount of Bonds
necessary for consent to such amendment.
If at any time the Authority shall desire to amend the Resolution
under this Section, the Authority shall cause notice of the proposed amendment
to be published in a financial newspaper or journal published in the State of
Texas, once during each calendar week for at least four successive calendar weeks.
Such notice shall briefly set forth_ the nature of the proposed amendment and
shall state that a copy thereof is on file at the places of payment for inspection
by all holders of Bonds and Additional Bonds. Such publication is not required,
however, if notice in writing is given to each holder of Bonds and Additional Bonds.
Whenever at any time not less than thirty days and within one year from
the date of the first publication of said notice or other service of written notice
the Authority shall receive an instrument or instruments executed by the holders
of at least three-fourths in aggregate principal amount of Bonds and Additional
Bonds then outstanding, which instrument or instruments shall refer to the proposed
amendment described in said notice and which specifically consent to and approve
such amendment in substantially the form of the copy thereof on file with the
places of payment, the Authority may adopt the amendatory resolution in substant-
ially the same form.
Upon the adoption of any amendatory resolution pursuant to the provisions
hereof, the Resolution shall be deemed to be amended in accordance with such
amendatory resolution, and the respective rights, duties and obligations under the
Resolution of the Authority and all the holders of outstanding Bonds and Additional
Bonds shall thereafter be determined, exercised and enforced hereunder, subject in
all respects to such amendments.
Any consent given by the holder of a Bond pursuant to the provisions of
this Section shall be irrevocable for a period of six months from the date of the
first publication of the notice provided for in this Section, and shall be con-
clusive and binding upon all future holders of the same Bond during such period.
Such consent may be revoked at any time after six months from the date of the first
publication of such notice by the holder who gave such consent, or by a successor
in title, by filing notice thereof with the places of payment and the Authority,
but such revocation shall not be effective if the holders of three-fourths aggre-
gate principal amount of the Bonds and Additional Bonds outstanding prior to the
attempted revocation, consented to and approved the amendment.
z9
For the purpose of this Section, the fact of the holding of
Bonds by any bondholder and the amount and numbers of such Bonds, and the
date of his holding same may be proved by the affidavit of the person
claiming to be such holdar, or by a certificate executed by any trust
company, bank, banker, or any other depositary, wherever situated, show-
ing that at the date therein mentioned such person had on deposit with
such trust company, bank, banker or other depositary, the Bonds des-
cribed in such certificate. The Authority may conclusively assume that
such ownership continues until written notice to the contrary is served
upon the Authority.
•
NO LITIGATION
There is no litigation pending or to the knowledge of the Authority
threatened questioning the official existence of the Authority or the title of
the officers of the Authority to their respective offices, or the validity of
the Bonds, or the power and authority of the Authority to issue the Bonds.
LEGAL INVESTMENT 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 in-
strumentalities 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 ail 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.
TAX EXEMPTION
In the opinion of McCall, Parkhurst & Horton, Dallas, Texas, Bond
Counsel, interest on the Series 1979 Bonds is exempt from present Federal income
taxes under existing statutes, regulations, rulings and court decision.
LEGAL OPINIONS
The Authority will furnish a complete transcript of the proceedings
had incident to the authorization and issuance of the Bonds, including the un-
qualified 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
Authority, and based upon examination of such transcript of proceedings, the un-
qualified 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 pro-
vision made for their payment or security, or in any manner questioning the
validity of said Bonds or the coupons appertaining thereto, will also be furnish-
ed. 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 thereto or undertaken independentTy to verify
any of the information contained therein, except that, in its capacity as Bond
Counsel, such firm has reviewed the information describing the Bonds in such Offi-
cial Statement to verify that such description conforms to the provisions of the
Bond Resolution. 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 ADVISORS
M. E. Allison & Co., Inc., San Antonio, Texas is employed. as Financial
Advisors to the Authority 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. M. E. Allison & Co., Inc. is also employed as Financial Advisors to
the City of Corpus Christi and will not bid for the Bonds.
0,/
r�
AUTHENTICITY OF FINANCIAL INFORMATION
So far as any statements made in this Official Statement involve matters of
opinions, estimates, assumptions, or projections, whether or not expressly so
stated, such statements are made merely as such and should not be considered
statements of fact or representations that the opinion, estimate, assumption or
projection will approximate actual results. All of the summaries of the statues,
documents, contracts, and resolutions contained in this Official Statement are
made subject to all of the provisions of such statutes, documents, contracts,
and resolutions. These summaries do not purport to be complete statements and
reference is made to the complete original instruments and documents, copies of
which are on file and available for inspection at: Offices of the Authority, Mr.
Harold Zick, Director of Finance, Corpus Christi, Texas, and M. E. Allison
& Co. , Inc., 1615 National Bank of Commerce Building, San Antonio, Texas.
SUCCESSFUL BIDDER
The Authority understands that the successful bidder intends to
offer the Bonds to the public initially at the prices or yields to be set forth
on the first page of this Official Statement, describing the Bonds. It is be-
lieved that the Bonds may be offered to certain dealers at prices other than the
public offering price. The initial public prices or yields set forth may be
subsequently changed.
CERTIFICATION AS TO OFFICIAL STATEMENT
The Authority will furnish the Purchaser, as a part of the transcript
of proceedings, a certified copy of a resolution of the Authority as of the date
of the sale of the Bonds which will approve the form and content of this Official
Statement, and any addenda, supplement or amendment thereto, and authorize its
further use in the reoffering of the Bonds by the Purchaser.
ATTEST:
JEROME T. BRITE
Secretary -Treasurer
NUECES RIVER AUTHORITY
HARRY J. SCHULZ
President
• CITY OF CORPUS CHRISTI WATERWORKS SYSTEM
The Corpus Christi' Waterworks System originated in 1893. with the construction
of the first surface water pumping plant (wood fired) at Calallen, a transmission
main and distribution system. These facilities served a population of 3,000 and
represented an investment of $143, 500.
THE NUECES RIVER WATERSHED has an average annual yield of some 612,900
acre feet. These flows originate in a 16, 000 square mile watershed area and are
collected in the Atascosa, Frio and Nueces Rivers.
RAW WATER STORAGE is impounded in Lake Corpus Christi by the Wesley
Seale Dam, completed in 1958 and owned by the Lower Nueces River Water Supply
District. The reservoir has a capacity of 272, 000 acre feet. In accordance with
the contract between the City and the Lower Nueces River Water Supply District,
the maintenance of the dam and reservoir is the City's responsibility, and water
is purchased from the District at rates ranging from 3-1/4 cents to 1-1/2 cents
per 1,000 gallons with a minimum annual charge of $480, 000 for fourteen billion
gallons of water. The Dam and Lake will become the property of the City when
the District's debt is paid.
WATER TREATMENT PLANTS. Water is treated, settled, filtered and pumped
at the Cunningham and Stevens Filtration Plants at Calallen, some 35 miles down-
stream from the Lake. These plants have a combined rated capacity of 74 million
gallons per day, with a overload capacity of 40%. Maximum production demand for
the year ended 7-31-78 was 99.02 mgd. Finished water is pumped to the City, the
industrial district and the urban area. Treated water is also delivered to Reynolds
Metal Company and San Patricio Municipal Water District. The District provides
a source of water supply for its member cities, being; Aransas Pass, Gregory,
Ingleside, Odem, Portland, Taft, and also sells water to Reynolds Metal Company,
DuPont Company, Sun Oil Company, Nueces County Water Control & Improvement
District #4 (City of Port Aransas), Aransas County Conservation and Reclamation
District (City of Rockport), Big Three Industries, and smaller consumers classif-
ied as rural, domestic and commercial. San Patricia Municipal Water District
also purchases raw water from the City through their pumping station near the
City's filter plant and delivers untreated water to Reynolds Metal Company, Big
Three Industries and DuPont Company. Celanese Corporation and Suntide Refin-
ing also have raw water stations on the river near the Cunningham filter plant. In
addition, the Alice Water Authority purchases water from the City at Lake Corpus
Christi for municipal use.
TRANSMISSION MAINS. Five mains transport finished water from the treat-
ment plants to the distribution system. These mains have a combined capacity of
128 mgd when working against distribution pressure.
IN -TOWN RESERVOIRS AND PUMPS. At present there are five ground reser-
voirs and pumping stations. In addition to ground storage, there are five elevated
storage tanks.
DISTRIBUTION SYSTEM. On July 31, 1978 the system served 62,235 metered
customers. There are 1,005.80 miles of water lines ranging from 2" to 54".
Developers of new subdivisions are required to install at their own expense water
distribution systems in accordance with standards set by the City. There are
5, 111 fire hydrants in the system. The City's construction standards meet all
fire insurance requirements.
COOF CORPUS CEIRISTI AND LOWER NUECES RIVER WATER SUPPLY DISTRIC.
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 Lake
Corpus Christi, the District's reservoir. A minimum monthly payment of 540,000
for water purchases is agreed upon, and an additional declining scale of prices
ranging from 3.25 cents to 1.50 cents per 1,000 gallons for annual water purchases
in excess of the minimum of fourteen billion gallons. The City agrees to operate
and maintain the dam at its own expense during the term of the contract which is 30
years. It further agrees to negotiate an additional contract should the District remain
obligated on bonds sold to finance construction of the dam_ 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 extension, the City has the right to take
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, 1978, the District had
outstanding bonds payable totaling $7,924,000 maturing serially through 1986, with
interest rates from 3% to 4.20%.
5S
•
•
WATER RATES
The engineering firm of Black & Veatch was engaged by the City in March, 1977 to make
an updated study of water rates and cost of service. The report was completed in July,
1977, and new rates were adopted by Ordinance No. 14140 on January 25, 1978 and be-
came effective with the March 1, 1978 billing. The adjusted rates resulted in an average
increase of 32% over the previous schedule. The increased rates were in effect for 5
months of the fiscal year ended July 31, 1978, and accounted for part of the increase in
Net Revenues over the fiscal year ended July 31, 1977. Another factor was the increase
in consumption due in part to weather conditions. Average daily production of treated
water was up 11.42% and withdrawal of raw water from the Lake was up 11.76%.
The published rates set out below are in effect for all customers except: (1) Reynolds
Metal Company which purchases treated water at the Cunningham Treatment Plant at a
contract price of $0.205 per 1000 gallons under a contract which expires in October,
1983. Thereafter published rates will apply; (2) The Alice Water Authority for the City
of Alice and the San Patricio Municipal Water District for 8 communities in San Patricio
and Aransas Counties purchase raw water according to a contract formula which is now
$0.10 per 1000 gallons.
PUBLISHED RATES EFFECTIVE MARCH 1, 1978
Inside City Outside City Limits
Meter Size Limits Padre Island All Other
Inches Minimum Minimum Minimum
5/8 x 3/4 $ 2.45 $ 8.50 S 4.90
1 3.20 10.00 6.40
11/2 4.80 15.00 9.60
2 7.00 22.00 14.00
3 22.10 85.00 44.22
4 25.20 100.00 50.40
6 37.80 75.60
8 & Larger 56.70 113.40
TREATED WATER - ALL:
Cost per Cost per Cost per
1,000 1,000 1,000
Gallons Gallons Gallons
First 3,000 Gallons Minimum Minimum Minimum
Next 17, 000 Gallons $ 0.75 $ 1.50 S I.50
Next 80, 000 Gallons 0.56 1. 12 1. 12
Next 900,000 Gallons 0.47 0.94 0.94
Next 9,000,000 Gallons 0.38 0.55 0.55
Over 10, 000, 000 Gallons 0.28 0.35 0.35
UNTREATED WATER - ALL: $ 0.11 $ 0. 11 $ 0. 11
PRIVATE FIRE PROTECTION - ANNUAL CHARGES:
Size of Branch Outside
Inches City Limits
3 & Less 5 50.00
4 94.00
6 213.00
8 375.00
10 575.00
12 815.00
d6
ANNUAL RAINFALL'
As Recorded at International Airport
Fiscal Fiscal
Year Inches Year Inches
1958-59 43.34 1968-69 20.99
1959-60 32.98 1969-70 33.99
1960-61 47.70 1970-71 28.81
1961-62 13.15 1971-72 48.38
1962-63 16.09 1972-73 36.28
1963-64 22.80 1973-74 37.36
1964-65 24.43 1974-75 20.61
1965-66 32.99 1975-76 37.52
1966-67 16.64 1976-77 34.13
1967-68 59.09 1977-78 30.51
ANNUAL PRODUCTION TREATED WATER - MILLION GALLONS
10 -Year Record
John W. . O. N. Total
Fiscal Cunningham Stevens Both
Year Plant Plant Plants
1968-69 5,494.2 15,096.7 20,590.9
1969-70 5,298.4 14, 889.0 20, 187.4
1970-71 6,248.8 14, 570.4 20, 819.2
1971-72 5,200.4 14,295.5 19,495.9
1972-73 5,102.9 15,650.0 20,752.9
1973-74 4,312.3 17, 202.8 21,515.1
1974-75 4,454.1 16, 859.3 21, 313.4
1975-76 5,211.3 15,364.8 20,576.1
1976-77 5,250.9 16, 117.6 21, 368.5
1977-78 6,635.9 17, 740.8 24, 376.7
ANNUAL PRODUCTION AND RAW WATER SALES - 1,000 GALLONS
10 -Year Record
Total Stevens Raw Misc. Total
Fiscal Pumped to Plant Water Raw Irri- Withdrawn
Year Consumers Washwater Withdrawn Sales gation from Lake
1968-69 20, 356, 700 144,020 6,107,623 36997 633 26, 612, 673
1969-70 19,970,930 128,140 6,568,626 606 2,550 26,670,852
1970-71 20,560,660 139,290 6,787,124 833 17,463 27,505,370
1971-72 19,203,180 162,180 5,445,711 -- 14,962 24,826,033
1972-73 20,481,340 178,840 7,033,367 -- 7,377 27,700,924
1973-74 21,054,830 318,490 6,378,651 4,556 17,761 27,774,288
1974-75 20,927,280 255,430 7,097,412 6,215 12,882 28,299,219.
1975-76 20,393,110 222,680 7,523,598 4,889 14,468 28,158,745
1976-77 21,368,470 -- 6,779,500 2,381 5,749 28,156,100
1977-78 24,376,710 8,717,420 4,312 6,692 33,105,134
-- Plants are now recycling all filter washwater.
NOTE: all withdrawals have been corrected or changed to conform with Water Division
records.
WA WORKS SYSTEM REVENUE DEBT:+
All first Mortgage Waterworks Revenue Bonds have been advanced refunded in order
to eliminate the mortgage on the System and to permit the issuance of Junior Lien
Revenue Bonds and First Lien Revenue Bonds. Under the terms of the Escrow Agree-
ment between City and Mercantile National Bank at Dallas, Dallas, Texas, United
States Treasury Notes - State 8: Local Government Series are escrowed to pay the
interest on, the principal of and the premium required to retire all such Bonds by
June 1, 1980.
JUNIOR LIEN WATERWORKS SYSTEM REVENUE BONDS:
$7,895,000 Junior Lien Waterworks System Revenue Bonds Series 1975, together
with other available funds of the City were used to advance refund all First Mortgage
Waterworks Revenue Bonds. These Bonds mature serially through July 10, 1990 and
were purchased by the Texas Water Developmert Board at an interest rate of 4. 125%.
$7,105,000 Junior Lien Waterworks System Revenue Bonds Series 1977 (on a parity
with Series 1975) were sold to the Texas Water Development Board to provide part of
the funds to construct Choke Canyon Reservoir. The Bonds mature serially through
July 10, 1990 and bear interest at the rate of 4.32%.
DEBT SERVICE REQUIREMENTS
JUNIOR LIEN WATERWORKS REVENUE BONDS
SERIES 1975 AND SERIES 1977
Fiscal Year Total
Ending July 31 Principal Interest Requirements
1979 $ 840,000 $541,476 $1,381,476
1980 885,000 506,163 1,391,163
1981 920,000 468,906 1,388,906
1982 955,000 430,137 1,385,137
1983 990,000 389,856 1,379,856
1984 1,035,000 348,063 1,383,063
1985 1,080,000 304,326 1,384,326
1986 1,120,000 258, 645 1,378,645
1987 1,170,000 211,236 1,381,236
1988 1,220,000 161,667 1,381,667
1989 1,270,000 109,938 1,379,938
1990 1,320,000 56,049 1,376,049
COMPARATIVE WATERWORKS SYSTEM OPERATING STATEMENT
- Fiscal Year Ending
7-31-78 7-31-77 7-31-76 7-31-75 7-31-74
Income $10,842,791(1) $8,228,348 $7, 687,198 $7,507,540 $6,339,441
Expenses 5,663,735 4,593,268 4,084,999 3,920,107 3,724,217
Net Revenue
Available For
Debt Service $ 5,179,056 $3,635,080 $3,602,199 $3,587,433 $2,615,224
(1) Rate increase in effect for 5 months of this period.
See Exhibit K-6, page 7 of Audit for details.
Note: Accounting principles customarily employed in the determination of net revenues
for coverage of debt service have been observed and in all instances exclude de-
preciation. Figures for fiscal years 1974 through 1978 from audits prepared by
Arturo Vasquez, CPA, Corpus Christi, Texas.
Corpus Christi, Texas
7 day of , 19 79
TO THE MEMBERS OF THE CITY COUNCIL
Corpus Christi, Texas
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,
MAYOR
THE CITY OF COR
The Charter rule was suspended by
Gabe Lozano, Sr.
Bob Gulley
David Diaz
Ruth Gill
Joe Holt
Tony Juarez, Jr.
Edward L. Sample
The above ordinance was passed
Gabe Lozano, Sr.
Bob Gulley
David Diaz
Ruth Gill
Joe Holt
Tony Juarez, Jr.
Edward L. Sample
14823
the following vote:
by the following
vote:
I, TEXAS