The URL can be used to link to this page

Home My WebLink About18137 RES - 03/28/1984RESOLUTION APPROVING THE FORM OF THE OFFICIAL STATEMENT PERTAINING TO CITY OF CORPUS CHRISTI, TEXAS GENERAL IMPROVEMENT BONDS, SERIES 1984, AND AUTHORIZING, RATIFYING AND APPROVING THE OFFICIAL STATEMENT AND THE USE THEREOF IN THE OFFERING AND SALE OF SAID BONDS, AND DECLARING AN EMERGENCY WHEREAS, the City of Corpus Christi is authorized to issue and sell its $12,500,000 General Improvement Bonds, Series 1984 authorized at elections held February 20, 1982 and August 13, 1983 pursuant to the Constitution and laws of Texas; and WHEREAS, it is the desire of the City Council that the Official Statement pertaining to said Bonds, and the u:e of said Official Statement should be duly authorized, ratified and approved. BE IT RESOLVED BY THE CITY COUNCIL -OF THE CITY OF CORPUS CHRISTI, TEXAS: 1. That the Official Statement, including the Official Notice of Sale, as set forth herein is hereby approved as to' form and content. 2. That the use of the Official Statement and all • addenda, if any, thereto in the offering and sale of said Bonds is hereby authorized, ratified and approved. 3. That the form of the Official Statement shall be substantially as follows, to -wit: 4G° 9 81984 MIROF1LMED' 18131 4. The fact that the contemplated use of the proceeds of the bonds is necessary for the orderly development and growth of the City of Corpus Christi, Texas, creates a public emergency and an imperative public necessity requir- ing the suspension of the Charter Rule providing 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 several meetings of the City Council and the Mayor having declared that such 'public emergency and imperative necessity exist, and having requested that said Charter Rule be suspended and that this resolution take effect and be in full force and effect from and after its adoption, it is accordingly so ordained. ADOPTED AND APPROVED this the 28th day of March, 1984. May of Corpus Christi ATTEST: City Secretary, Cite Corpus Christi The foregoing resolution was approved prior to adoption as to form and correctness this the 4 day of March, 1984. C y At orney, City of Corpus isti Corpus Christi, Texas 441.44 -day of ,114 L-' , 198 TO THE MEMBERS OF THE CITY COUNCIL Corpus Christi, Texas For the reasons set forth in the emergency clause of the foregoing ordinance or resolution, an emergency exists requiring suspension of the Charter rule as to consideration and voting upon ordinances or resolutions at three regular meetings; I/we, therefore, request that you fuspend said Charter rule and pass this ordinance or resolution finally on the date it is introduced, or at the present meeting of the City Council. Respectfully, Respectfully, Council Members MAYORPro• THE C TY OF CORPUS CHRISTI, TEXAS The above ordinance was passed y the following vote: Luther Jones Betty N. Turner ' David Berlanga, Sr. Welder Brown Leo Guerrero Dr. Charles W. Kennedy Joe McComb Frank Mendez • Mary Pat Slavik 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 $12,500,000 CITY OF CORPUS CHRISTI, TEXAS GENERAL IMPROVEMENT BONDS, Series 1984 Receiving Bids Wednesday, March 28, 1984 until 11:30 A.M. CST THE SALE Bonds Offered for Sale ... The City Council of the City of Corpus Christi, Texas (the "City"), is offering for sale at competitive bidding $12,500,000 General Improvement Bonds, Series 1984 (the "Bonds") more completely described in the "Official Statement" which is a part hereof. Place and Time of Sale ... The City Council will receive sealed bids at the City Council Chambers, City Hall, 302 South Shoreline Drive, until 11:30 A.M. on Wednesday, March 28, 1984, at which time the bids will be opened and publicly read for the purchase of the Bonds. Official action to award or reject the sale of the Bonds will not be taken until 2:00 P.M. March 28, 1984. Address of Bids ... All bids should be plainly marked "Bid for Bonds" and addressed to the Mayor and City Council, City of Corpus Christi, Texas, 302 South Shoreline Drive, Corpus Christi, Texas 78408. All bids must be submitted in duplicate on the Official Bid Form, without interlineation or alteration. Two copies of the bid forms are enclosed. All bids must be delivered at the above address prior to the above scheduled time for bid opening. A complete list of members of the group submitting the bid should be included with the Official Bid Form. Any bid received after such scheduled time for filing will not be accepted and will be returned unopened. Award of Sale of the Bonds ... The City Council will re -convene at 2:00 P.M. March 28, 1984 and adopt an ordinance (the "Ordinance") authorizing and awarding the sale of the Bonds or will reject all bids promptly. THE CITY COUNCIL OF THE CITY OF CORPUS CHRISTI, TEXAS, RESERVES THE RIGHT TO REJECT ANY OR ALL BIDS, AND TO WAIVE ANY IRREGULARITIES, EXCEPT TIME OF FILING. CONDITIONS OF THE SALE The Initial Bonds and Denomination of Bonds... The Series 1984 Bonds will be issued initially as twenty fully registered bonds in respective denominations equal to total maturities for each year bonds mature. The Bonds issued in exchange for the Initial Bonds will be registered bonds issued in denominations of $5,000 or any multiple thereof. Types of Bids and Interest Rate ... Bids must be for all or none of the Bonds and no bid of less than par and accrued interest will be considered. The net effective interest rate on the Bonds may not exceed 15%, as calculated pursuant to Article 717k-2, Vernon's Texas Civil Statutes, as amended. Interest rates must be in multiples of/s of 1%, with no greater difference than 2'1h% between the lowest and highest rates named. No limitation will be imposed upon bidders as to the number of interest rate changes which may be used; however, only one interest rate shall be used within a single maturity. Graduating or declining interest rates will not be acceptable. All bids must be submitted on the Official Bid Form without alteration or interlineation. Basis for Award... For the purpose of awarding sale of the Initial Bonds, the net interest cost of each bid will be computed by determining, at the rate or rates specified, the total dollar value of all interest on the Bonds from their date to the respective maturity dates and deducting therefrom the premium bid, if any. The Bonds will be awarded to the bidder whose bid, on the above computation, produces the lowest interest cost to the City. In the event of an error in computing the interest cost, the interest rates specified on the Official Bid Form will be considered the correct bid. Good Faith Deposit ... A Good Faith Deposit, payable to the City of Corpus Christi, Texas in the amount of 8250,000 is required. Such Good Faith Deposit shall be in the form of a Cashier's Check, which is to be retained uncashed by the City until the Bonds are delivered. Upon delivery and payment for the Bonds, this deposit will be returned to the Purchaser. 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 City as complete and full liquidated damages. No interest will be allowed on the Good Faith Deposit. The above mentioned Cashier's Check may accompany the "Official Bid Form" or it may be submitted separately. If submitted separately, it shall be made available to the City prior to the opening of the bids and shall be accompanied by instructions by the bank on which drawn and which authorized its use as a Good Faith Deposit by the Purchaser who shall be named in such instructions. Checks of unsuccessful bidders will be returned upon award of the Bonds. OFFICIAL BID FORM $12,500,000 CITY OF CORPUS CHRISTI, TEXAS GENERAL IMPROVEMENT BONDS, Series 1984 The City of Corpus Christi Corpus Christi, Texas March 28, 1984 Gentlemen: Subject to the terms of your Official Notice of Sale and Official Statement, dated February 15, 1984, which are made a part of this proposal by references, we hereby submit the following bid for $12,500,000 City of Corpus Christi, Texas General Improvement Bonds, Series 1984 dated April 15, 1984. For your legally issued Bonds, as described in said Official Statement, we will pay you par and accrued interest from date of the Bonds to date of delivery to us, plus a cash premium of $ Bonds maturing and bearing interest as follows: $250,000 April 15, 1985 % $650,000... .... April 15, 1995 % 400,000 April 15, 1986 % 650,000. . .. . April 15, 1996 % 500,000. April 15, 1987 % 650,000 April 15, 1997 % 650,000 April 15, 1988 % 650,000. April 15, 1998 % 650,000 April 15, 1989 % 700,000 April 15, 1999 % 650,000 April 15, 1990 % 700,000 April 15, 2000 % 650,000 April 15, 1991 % 700,000 April 15, 2001 % 650,000 April 15, 1992 % 700,000... . .. April 15, 2002 % 650,000 April 15, 1993 % 700,000..... .. April 15, 2003 % 650,000 April 15, 1994 % 700,000.... . . April 15, 2004 % Interest cost in accordance with the above bid is: Gross Interest Cost $ Less: Premium $ Net Interest Cost $ % Effective Interest Rate Cashier's Check of the Bank; in the amount of $250,000 which represents our Good Faith Deposit (is attached hereto) or (has been made available to you prior to the opening of this bid), and is submitted in accordance with the terms as set forth in the "Official Notice of Sale". Upon delivery of the Bonds, said check shall be returned to the Purchaser. The Initial Bonds shall be registered in the name of (Syndicate Manager). We will advise the Corpus Christi National Bank, P. O. Box 900, Corpus Christi, Texas 78403, the Paying Agent/Registrar, on forms to be provided by the Paying Agent/Registrar, our registration instructions at least five business days prior to the date set for Initial Delivery. We will not ask the Paying Agent/Registrar to accept any registration instructions after the five day period. We agree to accept delivery of and make payment for the Bonds in immediately available funds at Corpus Christi National Bank, Corpus Christi, Texas, not later than 10:00 A.M., CST, on May 1, 1984, or thereafter on the date the Bonds are tendered for delivery, pursuant to the terms set forth in the Official Notice of Sale. Respectively submitted, By ACCEPTED by the City Council on this day of , 1984. ATTEST: Mayor, City of Corpus Christi, Texas City Secretary BOND YEARS $12,500,000 CITY OF CORPUS CHRISTI, TEXAS GENERAL IMPROVEMENT BONDS, Series 1984 Dated: April 15, 1984 Due: April 15 Bond Years Year Amount Bond YearsCumulative Bond Years Year 1985 8250,000 250 250 1985 1986 400,000 800 1,050 1986 1987 500,000 1,500 2,550 1987 1988 650,000 2,600 5,150 1988 1989 650,000 3,250 8,400 1989 1990 650,000 3,900 12,300 1990 1991 650,000 4,550 16,850 1991 1992 650,000 5,200 22,050 1992 1993 650,000 5,850 27,900 1993 1994 650,000 6,500 34,400 1994 1995 650,000 7,150 41,550 1995 1996 650,000 7,800 49,350 1996 1997 650,000 8,450 57,800 1997 1998 650,000 9,100 66,900 1998 1999 700,000 10,500 77,400 1999 2000 700,000 11,200 88,600 2000 2001 700,000 11,900 100,500 2001 2002 700,000 12,600 113,100 2002 2003 700,000 13,300 126,400 2003 2004 700,000 14,000 140,400 2004 Average Maturity 11.2 years. Receipt is acknowledged on behalf of above described Good Faith Check this day of 1984. By Respectively submitted, By ACCEPTED by the City Council on this _ day of , 1984. ATTEST: Mayor, City of Corpus Christi, Texas City Secretary BOND YEARS 812, 500, 000 CITY OF CORPUS CHRISTI, TEXAS GENERAL IMPROVEMENT BONDS, Series 1984 Dated: April 15, 1984 Due: April 15 Bond Years Cumulative Year Amount Bond Years Bond Years Year 1985 $250,000 250 250 1985 1986 400,000 800 1,050 1986 1987 500,000 1,500 2,550 1987 1988..... 650,000 2,600 5,150 1988 1989 650,000 3,250 8,400 1989 1990 650,000 3,900 12,300 1990 1991 650,000 4,550 16,850. 1991 1992 650,000 5,200 22,050 1992 1993 650,000 5,850 27,900 1993 1994 650,000 6,500 34,400 1994 1995 650,000 7,150 41,550 1995 1996 650,000 7,800 49,350 1996 1997 650,000 8,450 57,800 1997 1998 650,000 9,100 66,900 1998 1999 700,000 10,500 77,400 1999 2000 700,000 11,200 88,600 2000 2001 700,000 11,900 100,500 2001 2002 700,000 12,600 113,100 2002 2003 700,000 13,300 126,400 2003 2004 700,000 14,000 140,400 2004 Average Maturity 11.2 years. Receipt is acknowledged on behalf of above described Good Faith Check this _ day of 1984. By OFFICIAL BID FORM $12,500,000 CITY OF CORPUS CHRISTI, TEXAS GENERAL IMPROVEMENT BONDS, Series 1984 The City of Corpus Christi Corpus Christi, Texas Gentlemen: March 28, 1984 Subject to the terms of your Official Notice of Sale and Official Statement, dated February 15, 1984, which are made a part of this proposal by references, we hereby submit the following bid for $12,500,000 City of Corpus Christi, Texas General Improvement Bonds, Series 1984 dated April 15, 1984. For your legally issued Bonds, as described in said Official Statement, we will pay you par and accrued interest from date of the Bonds to date of delivery to us, plus a cash premium of$ for Bonds maturing and bearing interest as follows: $250,000 April 15, 1985 % $650,000 April 15, 1995 % 400,000 April 15, 1986 % 650,000 April 15, 1996 % 500,000. April 15, 1987 % 650,000 April 15, 1997 % 650,000 April 15, 1988 % 650,000 April 15, 1998 650,000 April 15, 1989 % 700,000 April 15, 1999 % 650,000 April 15, 1990 % 700,000 April 15, 2000 % 650,000 April 15, 1991 % 700,000 April 15, 2001 650,000 April 15, 1992 % 700,000 April 15, 2002 % 650,000 April 15, 1993 % 700,000 April 15, 2003 % 650,000 April 15, 1994 % 700,000 April 15, 2004 % Interest cost in accordance with the above bid is: Gross Interest Cost $ Less: Premium $ Net Interest Cost $ Effective Interest Rate % Cashier's Check of the Bank; in the amount of $250,000 which represents our Good Faith Deposit (is attached hereto) or (has been made available to you prior to the opening of this bid), and is submitted in accordance with the terms as set forth in the "Official Notice of Sale". Upon delivery of the Bonds, said check shall be returned to the Purchaser. The Initial Bonds shall be registered in the name of (Syndicate Manager). We will advise the Corpus Christi National Bank, P. O. Box 900, Corpus Christi, Texas 78403, the Paying Agent/Registrar, on forms to be provided by the Paying Agent/Registrar, our registration instructions at least five business days prior to the date set for Initial Delivery. We will not ask the Paying Agent/Registrar to accept any registration instructions after the five day period. We agree to accept delivery of and make payment for the Bonds in immediately available funds at Corpus Christi National Bank, Corpus Christi, Texas, not later than 10:00 A.M., CST, on May 1, 1984, or thereafter on the date the Bonds are tendered for delivery, pursuant to the terms set forth in the Official Notice of Sale. w [THIS PAGE INTENTIONALLY LEFT BLANK] r DELIVERY OF THE BONDS AND ACCOMPANYING DOCUMENTS CUSIP Numbers ...It is anticipated that CUSIP identification numbers will appear on the Bonds, but neither the failure to print or type such number on any Bond nor any error with respect thereto shall con- stitute cause for a failure or refusal by the Purchaser to accept delivery of and pay for the Bonds in accordance with the terms of this Official Notice of Sale and the terms of the Official Bid Form. All expenses in relation to the printing or typing of CUSIP numbers on the Bonds shall be paid by the City; provided, however, that the CUSIP Service Bureau charge for the assignment of the numbers shall be the responsibility of and shall be paid for by the Purchaser. Delivery of Initial Bonds ...Initial Delivery will be at the principal corporate office of the Corpus Christi National Bank, Corpus Christi, Texas, Paying Agent/Registrar. Payment for the Bonds must be made in immediately available funds for unconditional credit of the time fixed for delivery of the Bonds. It is anticipated that Initial Delivery of the Initial Bond can be made on or about May 1, 1984, and it is under- stood and agreed that the Purchaser will accept delivery and make payment for the Initial Bond by 10:00 A.M., CST, on May 1, 1984 or thereafter on the date the Bond is tendered for delivery, up to and including May 29, 1984. If for any reason the City is unable to make delivery on or before May 29, 1984, then the City shall immediately contact the Purchaser and offer to allow the Purchaser to extend his offer for an additional thirty days. If the Purchaser does not elect to extend his offer within six days thereafter, then his Good Faith Deposit will be returned, and both the City and the Purchaser shall be relieved of any further obligation. In no event shall the City be liable for any damages by reason of its failure to deliver the Bonds, provided such failure is due to circumstances beyond the City's reasonable control. Subsequent Delivery of Bonds ... Upon payment for the Initial Bonds at the time of the Initial Delivery, Corpus Christi National Bank, Corpus Christi, Texas, the Paying Agent/Registrar shall cancel the Initial Bond, provided registration instructions have been received by the Paying Agent/Registrar, and shall register and deliver the registered definitive Bonds, in any integral multiple of $5,000 for any one maturity, in accordance with instructions received from the Purchaser and/or members of the Purchaser's Syndicate Account. It shall be the duty of the Purchaser to furnish to the Paying Agent/Registrar, at least five business days prior to the Initial Delivery, written instructions on forms which the Purchaser must request and obtain from, and which shall be provided by, the Paying Agent/Registrar designating the names in which the Bonds are to be registered, the addresses of the registered Holders, the maturities, interest rates and denominations. If such forms are not available, written instructions by letter shall be furnished to Paying Agent/Registrar. The Paying Agent/Registrar will not be required to accept registration instruc- tions after the fifth business day prior to Initial Delivery. If such written instructions are not received within the specified time period, the cancellation of the Initial Bonds and the subsequent delivery of the Bonds will be delayed until such written instructions are received. Legal Opinions...The City will furnish to the representative of the successful bidder a complete transcript of proceedings had incident to the authorization and issuance of the Bonds, including the unqualified approving legal opinion of the Attorney General of the State of Texas, as to the Initial Bonds that the Bonds are valid and legally binding obligations of the City, and based upon examination of such transcript of proceedings, the unqualified approving legal opinion of Messrs. McCall, Parkhurst and Horton, Bond Counsel, to the effect that the interest on the Bonds issued in compliance with the provisions of the ordinance is exempt from federal income taxation under existing statutes, regulations, published rulings and court decisions. The opinion of said firm will be printed on the Bonds. (See "Legal Opinions" in the Official Statement). No-Litigation Certificate ...The City will execute and deliver to the Purchaser a certificate that no litigation of any nature has been filed or is then pending to restrain or enjoin the issuance and delivery of the Bonds, or which would affect the provisions made for their payment or security, or in any manner questioning the validity of the Bonds. Certification as to Official Statement ... At the time of payment for and delivery of the Bonds, the City will furnish the Purchaser a certificate, signed by the City Manager, and Director of Finance, acting in their official capacity, to the effect that the "Official Statement" has been authorized and approved by the City Council, and to the best of their knowledge and belief, and after reasonable investigation: (a) neither the "Official Statement" nor any amendment or supplement thereto contains any untrue statement of a material fact or omits to state a material fact required to be stated therein or necessary to make the ii statements therein in light of the circumstances in which they were made, not misleading; (b) since the da, _ of the "Official Statement" no event has occurred which should have been set forth in an amendment or supplement to the "Official Statement" which has not been set forth in such amendment or supplement; (c) nor has there been any material adverse change in the operation or financial affairs of the City since the date of such "Official Statement". The Official Statement, Official Notice of Sale and Official Bid Forms will be approved as to form and content and the use thereof in the offering of the Bonds will be authorized, ratified and approved by the City Council on the date of sale, and the Purchaser will be furnished, at the time of payment and the delivery of the Bonds, a certified copy of such approval, duly executed by the proper officers. GENERAL Paying Agent/Registrar ...Corpus Christi National Bank, P. O. Box 900, Corpus Christi, Texas 78403 is Paying Agent/Registrar. The Bonds will be issued in fully registered form in multiples of $5,000 for any one maturity, and principal and semi-annual interest will be paid by the Paying Agent/Registrar. Principal of the Bonds will be payable to the registered holder at maturity or redemption upon presentation to the Paying Agent/Registrar. Interest on the Bonds will be payable by check, dated as of the interest payment date, and mailed by the Paying Agent/Registrar to registered owners as shown on the records of the Paying Agent/Registrar on the Record Date (see "Record Date" in the Official Statement). Successor Paying Agent/Registrar ...Provision is made in the Ordinance for replacement of the Paying Agent/Registrar. If the Paying Agent/Registrar is replaced by the City, the new Paying Agent/Registrar shall accept the previous Paying Agent/Registrar's records and act in the same capacity as the previous Paying Agent/Registrar. Any Paying Agent/Registrar selected by the City shall be either a qualified national or state banking or financial institution doing business under the laws of the United States of America or of any state, authorized under such laws to exercise trust powers. Successor Paying Agent/Registrar, if any, shall be determined by the City. Future Registration . The Bonds, or portions thereof, in any integral multiple of $5,000 may be transferred, registered, and assigned, but only on the registration books of the Paying Agent/Registrar in accordance with the provisions set forth in the Official Statement, and such registration shall be at the expense of the City. 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 accordance with the terms of the sale and subsequently may use the Official Statement in presentation of the Bonds to prospective purchasers. Information with respect to interest rates and other matters relating to the re -offering for sale of the Bonds are the responsibility of the Purchaser and such information is not provided herein. The City will furnish to the successful Purchaser of the Bonds 50 copies of the Official Statement. If the Purchaser requires more than 50 copies, he will have to arrange, at his own expense, to have the Official Statement reproduced. Responsibility for Qualification of Bonds for Sale in Respective States ... The City assumes no responsibility for qualification of the bonds under the securities laws of any jurisdiction in which the Bonds may be sold, assigned, pledged, hypothecated or otherwise transferred. This disclaimer of responsibility for qualification for sale or other disposition of the Bonds shall not be construed as an interpretation of any kind with regard to the availability of any exemption from securities registration provisions. Ratings ...Applications for contract ratings on this issue have been made to both Moody's Investors Service and Standard & Poor's. The results of their determinations will be provided as soon as possible. iii aitional Copies of Statement, Notice and Bid Form ...A limited number of 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 Consultants to the City. Attest: Bill G. Read, City Secretary February 15, 1984 Edward A. Martin City Manager iv [THIS PAGE INTENTIONALLY LEFT BLANK] OFFICIAL STATEMENT Relating to the Sale of $12,500,000 CITY OF CORPUS CHRISTI, TEXAS GENERAL IMPROVEMENT BONDS, SERIES 1984 Receiving Bids Wednesday, March 28, 1984 until 11:30 a.m. C.S.T. NEW ISSUE OFFICIAL STATEMENT DATED FEBRUARY 15, 1984 Interest Exempt, in the Opinion of Bond Counsel, from Present Federal Income Taxes Under Existing Statutes, Regulations, Published Rulings and Court Decisions. Ratings: Moody's_ Standard & Poor's $12,500,000 CITY OF CORPUS CHRISTI, TEXAS GENERAL IMPROVEMENT BONDS, Series 1984 Dated: Apri115, 1984 Due: See Below The Bonds will be issued as fully registered bonds without coupons in the denomination of $5,000 or any integral multiple thereof. Interest on each bond will be payable on April 15 and October 15, commencing October 15, 1984 by check or draft, dated as of the interest payment date, and mailed by the Corpus Christi National Bank, Corpus Christi, Texas, Paying Agent/Registrar, to registered owners at the address as shown on the records of the Paying Agent/Registrar at the close of business on the 1st calendar date of the month that each interest payment is due. Principal of each bond will be payable at the principal offices of the Paying Agent/Registrar in Corpus Christi, Texas. The Bonds constitute direct and voted tax obligations of the City of Corpus Christi, Texas and are payable from ad valorem taxes levied against all taxable property located therein, within the limits prescribed by law. Amount $250,000 400,000 500,000 650,000 650,000 650,000 650,000 650,000 650,000 650,000 Optional Provision: Legality: Delivery: MATURITY SCHEDULE (Due April 15) Price Or Rate Maturity Yield Amount 1985 $650,000 1986 650,000 1987 650,000 1988 650,000 1989 700,000 1990 700,000 1991 700,000 1992 700,000 1993 700,000 1994 700,000 Price Or Rate Maturity Yield 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 Bonds maturing on and after April 15, 2000 shall become optional for redemption in whole or any part thereof on April 15, 1999 and/or any interest payment date thereafter at par plus accrued interest to the date fixed for redemption. Attorney General of the State of Texas, and Messrs. McCall, Parkhurst & Horton, Attorneys, Dallas, Texas. (Opinion printed on the Bonds, see "Legal Opinions".) Anticipated on or about May 1, 1984. This Official Statement does not constitute an offer to sell, or solicitation of an offer to buy, any of the Bonds to any person in any jurisdiction in which such offer or solicitation is unlawful. The information contained herein has been obtained from sources believed to be reliable, but no guarantee is made as to the accuracy or completeness of such information. Information concerning initial offering prices or yields has been furnished by the initial purchasers of the Bonds. No person is authorized to give any information or to make any representations with respect to this offering not contained in this Official Statement and, if given or made, such information or representations must not be relied upon as having been authorized by the City. The delivery of this Official Statement at any time does not imply that the information herein is correct as of any time subsequent to its date. OF TABLE OF CONTENTS Page Page Certain Aspects of the City's Financial 3 Procedures . 17 4 Budget Summary 1983-84 18 5 Revenues — Assessed Valuations 19 5 The Tax Increment Financing Act of 1981 21 6 Tax Rates and Collections — Principal 8 Taxpayers 22 8 Comparison of General Expenditures for Selected Functions 26 8 Annexation Program 27 9 Waterworks System 28 9 Wastewater Disposal System 29 9 Gas System 29 Comparative Utility Systems Operating 9 Statement 30 9 Utility Connections 30 10 International Airport 31 11 Transit System 31 Economic and Demographic 12 Characteristics 31 Self Insurance Program 40 13 Litigation 40 13 Legal Opinions 40 Financial Consultants 41 14 Authenticity of Financial Information 41 14 Independent Audits 41 City's Annual Financial Reports 41 15 Certification of the Official Statement 41 15 Financial Statements F-1 16 Description of the Bonds Official Statement Summary City Administration Introduction The Bonds Registration Capital Improvement Program Use of Bond Proceeds Authorized But Unissued General Improvement Bonds Anticipated Sale of Additional Bonds Debt Payment Record Authority for Issuance of Debt; Limitations Debt Payable from Taxes Estimated Overlapping Net Debt Debt Ratios Debt Service Requirements Tax Supported Bonds Summary of Tax Supported Debt Service Requirements Interest and Sinking Fund Management Detailed Interest and Sinking Fund Management Index Revenue Bond Obligations Debt Service Requirements Revenue Bonds Summary Debt Statement City of Corpus Christi 2 OFFICIAL STATEMENT SUMMARY The following material is qualified in its entirety by the detailed information and financial statements appearing in this Official Statement: The Offering The Issuer The City of Corpus Christi, Texas. Issue and Date $12,500,000 General Improvement Bonds, Series 1984. The Bonds are dated April 15, 1984. Use of Proceeds The construction of various general improvement projects and the purchase of a site and construction of a new City Hall. Amounts and Maturities The Bonds will mature on April 15 in amounts of $250,000 in 1985; $400,000 in 1986; $500,000 in 1987; and $650,000 in 1988 through 1998; $700,000 in 1999 through 2004. Interest Payment Dates Each April 15 and October 15 beginning October 15, 1984. Optional Provisions Bonds maturing on and after April 15, 2000 shall become optional for redemption in whole or any part thereof on April 15, 1999 and/or any interest payment date thereafter at par plus accrued interest to the date fixed for redemption. Security for Payment Principal and interest on the Bonds will be payable out of receipts from an ad valorem tax levied on all taxable property within the City, within the limits prescribed by law. SELECTED FINANCIAL AND TAX DATA January 1, 1983 Net Taxable Assessed Valuation (100% of Market Value) $5,063,247,162 Total Tax Supported Debt Outstanding(1) $ 105,260,000 Less: Self Supporting Debt $23,251,482 Applicable Interest and Sinking Fund 11,555,468 34,806,950 NET DEBT $ 70,453,050 Ratio Net Debt to 1983 Net Taxable Assessed Valuation 1.39% Net Debt Per Capita (1983 Population Estimate — 246,034) $ 286.35 Average Current Tax Collections Past Five Years 96.12% Average Total Tax Collections Past Five Years 98.44% (1) As of January 31, 1984 and adjusted to include these $12,500,000 Bonds. 3 CITY ADMINISTRATION Elected Officials Years of Service Term Expires Mayor Luther Jones 5 April 1985 Mayor Pro -Tem Betty N. Turner 5 April 1985 Council Members Frank Mendez, District 1 1 April 1985 David Berlanga, District 2 1 April 1985 Leo Guerrero, District 3 1 April 1985 Mary Pat Slavik, District 4 1 April 1985 Joe McComb, District 5 1 April 1985 Welder Brown, At Large 1 April 1985 Dr. Charles Kennedy, At Large 3 April 1985 APPOINTED OFFICIALS Years of Service Name Position Total In Position Edward A. Martin City Manager 2 2 J. Bruce Aycock City Attorney 8 8 Charles J. Daley Director of Finance 14 1 Bill G. Read City Secretary 15 9 CONSULTANTS AND ADVISORS Bond Counsel McCall, Parkhurst and Horton, Dallas, Texas Independent Certified Public Accountants Fox & Company, Corpus Christi, Texas Financial Consultants M. E. Allison & Co., Inc., San Antonio, Texas 4 $12,500,000 CITY OF CORPUS CHRISTI, TEXAS GENERAL IMPROVEMENT BONDS, Series 1984 INTRODUCTION This Official Statement of the City of Corpus Christi, Texas (the "City" or "Corpus Christi") is provided to furnish information in connection with the sale of the City's General Improvement Bonds, Series 1984 (the "Bonds"), in the aggregate principal amount of $12,500,000. THE BONDS Purpose and Authorization The Bonds are to be issued pursuant to an Ordinance (the "Ordinance") adopted by the City Council of Corpus Christi. $7,000,000 of the Bonds constitute the third installment of a total authorization of $45,464,000 of general improvement bonds authorized at an election held February 20, 1982. The February election contained nine various improvement propositions: Sanitary Sewer, Street, Sanitary Land Fill, Parks and Recreation, Airport Land and Hazard Elimination, Airport Improvement, Storm Sewer, Public Safety and Library. $5,500,000 of the Bonds constitute the first installment of a total authorization of $15,000,000 authorized at an election on August 13, 1983 for the purpose of purchasing a site, construction and equipping a new City Hall. See captions "Use of Bond Proceeds" and "Authorized But Unissued General Improvement Bonds" for more complete details. Form of Bonds and Place of Payment The Bonds will be issued as fully registered bonds without coupons in the denomination of $5,000 or any integral multiple thereof. Interest on each bond will be payable on April 15 and October 15, commencing October 15, 1984 by check or draft, dated as of the interest payment date and mailed by the Corpus Christi National Bank, Corpus Christi, Texas, Paying Agent/Registrar to registered owners as shown on the records of the Paying Agent/Registrar at the close of business on the 1st calendar day of the month that each interest payment is due. Principal of each bond will be payable at the principal offices of the Paying Agent/Registrar in Corpus Christi, Texas. Interest and Maturities The Bonds are to be dated April 15, 1984, and will bear interest from that date at the rates specified on the cover or first page of this Official Statement; except that Bonds authenticated after October 1, 1984 shall bear interest from the interest payment date next preceding the date of authentication. Interest on the Bonds will be payable on October 15, 1984, and thereafter semi-annually on April 15 and October 15 of each year as set forth in the preceding paragraph. The principal of each bond will be payable at the principal offices of the Paying Agent/Registrar as set forth in the preceding paragraph. Optional Provision Bonds maturing on and after April 15, 2000 shall become optional for redemption in whole or any part thereof on April 15, 1999 and/or any interest payment date thereafter at par plus accrued interest to the date fixed for redemption. Security for the Bonds In the Ordinance, the City levies and covenants that it will collect an ad valorem tax, within the limits prescribed by law, against all taxable property of the City sufficient to meet the debt service requirements on the Bonds. The maximum tax rate permitted by the Constitution of the State of Texas is $2.50 per $100 of assessed valuation. The City Charter was amended on April 5, 1980 and limits the ad valorem tax to $0.68 per $100 of assessed valuation, the maximum tax rate for all purposes, including debt service. 5 Bondholders' Remedies The Ordinance does not specifically provide any remedies that would be available to a Bondholder if the City defaults in the payment of the principal or interest on the Bonds or for the appointment of a Trustee to protect and enforce the interests of the Bondholders upon the occurrence of such a default. If a holder of a Bond does not receive payment of principal or interest when due, the holder could seek to obtain a writ of mandamus from a court of competent jurisdiction requiring the City to observe the covenants contained in the Ordinance or could presumably recover a judgment against the City. Legal Investments in Texas Article 717k-6, Vernon's Texas Civil Statutes, which applies to the Bonds, provides in part: "All bonds ... are legal and authorized investments for banks, savings banks, trust companies, building and loan associations, savings and loan associations, insurance companies, fiduciaries, and trustees, and for the sinking fund of cities, towns, villages, school districts, and other political subdivisions or public agencies of the State of Texas. Said bonds also are eligible to secure deposits of any public funds of the State or any political subdivision or public agency of the State, and are lawful and sufficient security for the deposits to the extent of their market value." No representation is made with respect to the laws of states other than Texas as to whether the Bonds are legal investments for various institutions or purposes in those states. Ratings Application for contract ratings on the Bonds have been made to Moody's Investors Service, Inc. and Standard & Poor's Corporation. An explanation of the significance of such ratings may be obtained from the company furnishing the rating. The ratings reflect only the respective views of such organizations and the City makes no representation as to the appropriateness of the ratings. There is no assurance that such ratings will continue for any given period of time or that they will not be revised downward or withdrawn entirely if in the judgment of either or both companies, circumstances so warrant. Any such downward revision or withdrawal of such ratings, or either of them, may have an adverse effect on the market price of the Bonds. REGISTRATION Tax Equity and Fiscal Responsibility Act of 1982 ("TEFRA") TEFRA, as amended, mandates, among other things, that all municipal bonds (excepting those with a one year maturity or less) must be registered in the owner's name, beginning with July 1, 1983. Paying Agent/Registrar The Bonds will be issued in fully registered form in the principal amount of $5,000 or any integral multiple thereof, and principal and semi-annual interest will be paid by the Paying Agent/Registrar. Principal of the Bonds will be payable to the registered holder at maturity or redemption upon presentation to the Paying Agent/ Registrar. Interest on the Bonds will be payable by check, dated as of the interest payment date, and mailed to registered owners at the address as shown on the records of the Paying Agent/ Registrar at the close of business on the Record Date (see "Record Date" herein). Successor Paying Agent/Registrar Provision is made in the Ordinance for replacement of the Paying Agent/Registrar by the City. If the Paying Agent/Registrar is replaced, the new Paying Agent/Registrar shall accept the previous Paying Agent/Registrar's records and act in the same capacity as the previous Paying Agent/Registrar. Any Paying Agent/Registrar selected by the City shall be either a qualified national or state banking or financial institution doing business under the laws of the United States of America or of any state, authorized under such laws to exercise trust powers. Registration, Transfer and Exchange Registration of the Series 1984 Bonds may be transferred on the Bond registration book kept by the Paying Agent/Registrar only upon presentation and surrender of such Series 1984 Bond to the Paying 6 Agent/Registrar, together with proper written instruments of assignment, in form and with guarantee of signatures satisfactory to the Paying Agent/Registrar, evidencing the assignment of the Series 1984 Bond, or any portion thereof in any integral multiple of $5,000, to the assignee or assignees thereof. Upon the assignment and transfer of any of Series 1984 Bond or any portion thereof, a new substitute bond or bonds shall be issued in conversion and exchange therefor. Additionally, the Series 1984 Bonds may be converted into and exchanged for fully registered bonds to the extent of the unredeemed principal amount thereof, upon surrender of such bond at the principal corporate trust office of the Paying Agent/Registrar, together with a written request therefor duly executed by the registered owner or the assignee or assignees thereof, or its or their duly authorized attorneys or representatives, with guarantee of signatures satisfactory to the Paying Agent/Registrar. If a portion of any Series 1984 Bond shall be redeemed prior to its scheduled maturity as provided herein, a substitute bond or bonds having the same maturity date, bearing interest at the same rate, in the denomination or denominations of any integral multiple of $5,000 at the request of the registered owner, and in an aggregate principal amount equal to the unredeemed portion thereof, will be issued to the registered owner upon surrender thereof for cancellation. If any Series 1984 Bond or portion thereof is assigned and transferred or converted, each bond issued in exchange therefor shall have the same principal maturity date and bear interest at the same rate as the bond for which it is being exchanged. Neither the City nor the Paying Agent/Registrar shall be required (a) to issue, transfer, or exchange any Bond during a period beginning at the opening of business 30 days before the day of the first mailing of a notice of redemption of Bonds and ending at the close of business on the day of such mailing, or (b) to transfer or exchange any Bond so selected for redemption in whole when such redemption is scheduled to occur within 30 calendar days. The City shall pay the Paying Agent/Registrar's reasonable and customary fees and charges for making transfers of Bonds, but the registered owner of any Bond requesting such transfer shall pay any taxes or other governmental charges required to be paid with respect thereto. The registered owner of any Series 1984 Bond requesting any conversion and exchange shall pay the Paying Agent/Registrar's reasonable and standard or customary fees and charges for converting and exchanging any such bond or portion thereof, together with any taxes or governmental charges required to be paid with respect thereto, all as a condition precedent to the exercise of such privilege of conversion and exchange, except, however, that in the case of the conversion and exchange of an assigned and transferred bond or bonds or any portion or portions thereof in any integral multiple of $5,000, and in the case of the conversion and exchange of a portion the unredeemed portion of a Series 1984 Bond which has been redeemed in part prior to maturity, such fees and charges will be paid by the City. The City will (a) pay the reasonable and standard or customary fees and charges of the Paying Agent/Registrar for its services with respect to the payment of the principal of and interest on the Series 1984 Bonds, when due, and (b) pay the fees and charges of the Paying Agent/Registrar for services with respect to the transfer or registration of Series 1984 Bonds and with respect to the conversion and exchange of Bonds solely to the extent above provided. Replacement Bonds If any Series 1984 Bond is mutilated, destroyed, stolen or lost, a new Series 1984 Bond in the same principal amount as the bond so mutilated, destroyed, or stolen or Lost will be issued. In the case of a mutilated Series 1984 Bond, such new bond will be delivered only upon surrender and cancellation of such mutilated Bond. In the case of any Series 1984 Bond issued in lieu of and substitution for a Series 1984 Bond which has been destroyed, stolen or lost, such new bond will be delivered only (a) upon filing with the Paying Agent/Registrar of evidence satisfactory to establish to the Paying Agent/Registrar that such bond has been destroyed, stolen or lost and proof of the ownership thereof, and (b) upon furnishing the Paying Agent/Registrar with indemnity satisfactory to it. The person requesting the authentication and delivery of a new Series 1984 Bond must comply with such other reasonable regulations as the Paying Agent/Registrar may prescribe and pay such expenses as the Paying Agent/Registrar may incur in connection therewith. Record Date The record date ("Record Date") for the interest payable on any interest payment date means the 1st day of the month that each interest payment is due. 7 CAPITAL IMPROVEMENT PROGRAM At an election held February 20, 1982, $45,464,000 General Improvement Bonds were approved to finance the City's ongoing Capital Improvement Program for the period 1982 through 1986. In addition to the proceeds from the Bonds, the City anticipates receiving $20,000,000 in federal funds generated by the Capital Improvement Program to supplement the Bond proceeds. On August 13, 1983 an additional $15,000,000 General Improvement Bonds were approved to finance the purchase of a site, construction and equipping a new City Hall. USE OF BOND PROCEEDS The proceeds from the sale of the Bonds will be used for the following purposes: Sanitary Sewers $ 100,000 Street 3,865,000 Parks and Recreation 352,000 Airport Land and Hazard Elimination 1,250,000 Airport Improvements 1,023,000 Public Safety 410,000 City Hall 5,500,000 Total $12,500,000 In the issuance of the Bonds, special consideration has been given to the estimated useful life of the construction, improvements and extensions being made as related to the maturity schedule of the Bonds being issued for those purposes. AUTHORIZED BUT UNISSUED GENERAL IMPROVEMENT BONDS The following table indicates the amount of authorized but unissued tax supported Bonds after sale of the Bonds: Amount Date Prop. Amount Previously The Unissued Voted N. Purpose Authorized Issued Bonds Bonds 2-20-82 1 - Sanitary Sewer $15,675,000 $ 5,900,000 $ 100,- 000 $ 9,675,000 2-20-82 2 Street 12,315,000 3,855,000 3,865,000 4,595,000 2-20-82 3 Sanitary Land Fill 800,000 800,000 -0- -0- 2-20-82 4 Parks and Recreation 1,212,000 860,000 352,000 -0- 2-20-82 5 Airport Land and Hazard Elimination 5,000,000 2,500,000 1,250,000 1,250,000 2-20-82 6 Airport Improvement 1,642,000 520,000 1,023,000 99,000 2-20-82 7 Storm Sewer 2,255,000 980,000 -0- 1,275,000 2-20-82 8 Public Safety 1,565,000 1,155,000 410,000 -0- 2-20-82 9 Library 5,000,000 5,000,000 -0- -0- 8-13-83 — City Hall 15,000,000 -0- 5,500,000 9,500,000 $60,464,000 $21,570,000 $12,500,000 $26,394,000 8 ANTICIPATED SALE OF ADDITIONAL BONDS The City does not intend to sell any additional Authorized but Unissued Bonds within ninety days from the sale of these Bonds. The City's Capital Improvement Program projects the sale of the remaining Authorized But Unissued Bonds from the 1982 authorization in the amounts of $3,000,000 in the latter part of 1984, and $13,894,000 in 1985/86. The balance of $9,500,000 City Hall Bonds will be sold in the latter part of 1984. DEBT Payment Record The City of Corpus Christi has not defaulted in the payment of the principal of, or interest on, its tax debt obligations within the last forty-four years nor has the City issued any refunding securities for the purpose of preventing a default in principal of, or interest on, its tax debt obligations within this period. Authority for Issuance of Debt; Limitations The City is authorized to issue ad valorem tax supported General Improvement Bonds to finance capital improvements. A majority vote of the qualified voters is ordinarily required to authorize the issuance of ad valorem tax supported bonds. The City is also empowered to issue tax supported certificates of obligation for the purpose of purchasing an existing utility and for the purpose of paying any contractual obligation incurred in the construction of public works or the purchase of land, materials and other supplies or services for the City's needs. Such certificates of obligation may be refunded by tax supported Bonds. In addition, the City may issue certificates of obligation with a pledge of both tax and revenues provided the City otherwise has the right to pledge the revenues involved. The issuance of certificates of obligation does not require voter approval except under certain circumstances. The City has outstanding two issues of combination tax and revenue certificates of obligation and one issue of tax certificates of obligation. The City is also authorized to issue revenue bonds for certain purposes. The authorized purposes include the financing of the water system, the wastewater disposal system, gas system, transportation system, civic center, airport and parks. The revenue bond indebtedness is not considered in determining the legal debt margin for ad valorem tax supported Bonds. Debt Payable From Taxes The debt of the City which is payable out of the ad valorem tax receipts consists of the City's General Improvement Bonds, Tax Certificates of Obligation, and Combination Tax and Revenue Certificates of Obligation. The table below shows the amount of direct tax supported debt of the City which was outstanding on January 31, 1984, and the amounts deducted as self-supporting debt and applicable interest and sinking funds relating to such debt. It is adjusted to reflect issuance of the Bonds. General Improvement Bonds (Including theBonds)(1) $ 99,360,000 Tax Certificates of Obligation (1) 400,000 Tax & Revenue Certificates of Obligation (1) 400,000 Tax & Revenue Certificates of Obligation (1) 5,100,000 Total Indebtedness Payable from Taxes $105,260,000 Less: Applicable Interest & Sinking Funds $11,555,468(2) Self -Supporting Debt: Tax Certificates of Obligation 400,000(1) Tax & Revenue Certificates of Obligation 400,000(1) Tax & Revenue Certificates of Obligation 5,100,000(1) Wastewater System Portion General Improvement Bonds 17,351,482(1) 23,251,482 34,806,950 Net Indebtedness Being Paid From Taxes $ 70,453,050 (footnote on next page) 9 l (footnote from previous page) (1) The $400,000 Tax Certificates of Obligation (Gas System), the $400,000 Tax & Revenue Certificates of Obligation (Airport), and the $5,100,000 Tax & Revenue Certificates of Obligation (Convention Facilities, Airport Parking and Public Safety Equipment) are self-supporting. $20,334,562 (including $100,000 of the Bonds) of General Improvement Bonds were issued for sanitary sewer purposes, of which $17,351,482 or 85.33% are self-supporting. The computation used in determining the self- supporting debt is as follows: Gas Wastewater System Airport Parking System Net System or Pledged Revenues Available for Debt Service F/Y ended 7-31-83 $2,546,434 $86,045' $1,347,243** $2,432,535 Less: Revenue Bond Debt Service 0_ 157,419 for F/Y ended 7-31-84 -0- -0- Balance Available for Other Purposes $2,546,434 $86,045 $1,347,243 $2,275,116 System General Obligation Debt Service forF/Yended7-31-84 $ 221,000 $72,300 $ 604,225 $2,666,253 Percent Considered Self -Supporting 100% 100% 100% 85.33% Airport FAA Tower Lease Payments "" 75% of Gross Receipts of Hotel Occupancy Tax and 50% Gross Revenues of Airport Parking Facilities. (2) The Total Interest & Sinking Fund is $14,831,008. After deducting $3,275,540 of the fund which applies to self-supporting tax debt, the applicable Interest & Sinking Fund is $11,555,468. Estimated Overlapping Net Debt Expenditures of the various taxing bodies, such as school and special districts, within the territory of the City are paid out of ad valorem taxes levied by these taxing bodies on properties within the City. These political taxing bodies are independent of the City and may incur borrowings to finance their expenditures. The following table reflects the estimated share of overlapping net debt of these various taxing bodies. Percent Overlapping Taxing Body Net Debt As Of Overlapping Net Debt CalallenI.S D $17,604,507 1-31-84 35.12% $ 6,182,703 CorpusChristil.S D 20,049,531 1-31-84 85.27% 17,096,235 Corpus Christi Jr. College Dist. -0- 1-31-84 85.27% -0- F1ourBluff LS D 10,167,149 1-31-84 75.37% 7,662,980 Lower Nueces River Water SupplyDist.(1) -0- 1-31-84 -0- -0- Nueces County 7,830,000 1-31-84 57.45% 4,498,335 Nueces County Hospital Dist -0- 1-31-84 -0- -0- Nueces County Navigation Dist -0- 1-31-84 -0- -0- Nueces County Road Dist. No. 4 -0- 1-31-84 -0- -0- Nueces County WC & ID No. 4 2,788,776 1-31-84 0.82% 22,868 Port Aransasl.S.D. 1,538,530 1-31-84 1.94% 29,847 Tuloso-Midwayl.S.D. 12,124,756 1-31-84 27.39% 3,320,971 WestOsol.S.D 4,166,124 1-31-84 69.56% 2,897,956 Total Overlapping Net Debt $41,711,895 (1) The City and Lower Nueces River Water Supply District have entered into a contract under which the District will not levy ad valorem taxes and the City will make supplemental payments to the District based on operating cost and sinking fund requirements. Therefore, although the District has tax bonds outstanding, the District's net debt is considered to be self-supporting. See under caption, "Waterworks System" for additional information. 10 Debt Ratios The following table shows a comparison of the ratios of net tax supported debt, estimated net over- lapping debt and combined net debt to assessed value of taxable property and estimated population in the City for the past five fiscal years and after giving effect to the issuance of the Bonds. For the purpose of this table, net direct debt consists of the City's tax supported debt less the amounts considered self-supporting debt and applicable interest and sinking funds. Adjusted to 1-31-84 Fival Year Ended 7-31 And Including The Bonds 1983 1982 1981 1980 1979 Assessed Valuation $5,063,247,162 54,670,679,831 $3,707,799,004 53,214,97- 5,732 52,731,614- ,088 $2,346,814- ,142 Population ... 246,034 242,398 238,816 231,999 229,000 227,000 Net Direct Debt . .. $ 70,453,050 $ 59,333,732 $ 47,760,462 $ 41,630,691 $ 53,397,281 $ 47,681,003 Ratio to Assessed Value 1.39% 1.17% 1.07% 1.12% 1.95% 2 03% Per Capita 5286 5255 5208 $180 8233 $210 Net Overlapping Debt $ 41,711,895 5 46,301,150 $ 35,943,595 $ 33,192,801 $ 34,421,692 $ 41,393,948 Ratio to Assessed Value ...... ... . 0.82% 0.91% 0.77% 0.90% 1.26% 1.76% Per Capita 5170 $199 8150 $143 5150 5182 Net Direct and Overlapping Debt 5 112,164,945 $ 105,634,882 $ 85,704,057 $ 74,823,492 $ 87,818,973 $ 89,074,951 Ratio to Assessed Value ..... . 2.22% 2.09% 1.83% 2.02% 3 21% 3.80% Per Capita ... $456 8455 $359 8323 1383 5392 11 Debt Service Requirements Tax Supported Bonds The following table sets forth the principal and interest requirements on the City's tax supported debt including the effect of the issuance of the Bonds for the fiscal years ending July 31. The Outstanding Principal and Interest Requirements column includes debt service requirements on all of the City's out- standing Tax Supported Bonds, Certificates of Obligation, and Combination Tax and Revenue Certifi- cates of Obligation. Fiscal Year Outstanding 512,500,000 Series 1984• Total Ending Prin. & Int. Total All 7-31 Requirements Principal Interest Issues Issues 1984 $ 7,115,862** $ -0- $ -0- $ -0- $ 7,115,862 1985 12,857,300 250,000 1,125,000 1,375,000 14,232,300 1986 12,273,535 400,000 1,102,500 1,502,500 13,776,035 1987 11,697,620 500,000 1,066,500 1,566,500 13,264,120 1988 11,114,738 650,000 1,021,500 1,671,500 12,786,238 1989 10,478,031 650,000 963,000 1,613,000 12,091,031 1990 9,968,306 650,000 904,500 1,554,500 11,522,806 1991 9,299,550 650,000 846,000 1,496,000 10,795,550 1992 8,880,563 650,000 787,500 1,437,500 10,318,063 1993 8,275,287 650,000 729,000 1,379,000 9,654,287 1994 7,551,038 650,000 670,500 1,320,500 8,871,538 1995 6,971,812 650,000 612,000 1,262,000 8,233,812 1996 6,227,144 650,000 553,500 1,203,500 7,430,644 1997 5,754,006 650,000 495,000 1,145,000 6,899,006 1998 4,784,644 650,000 436,500 1,086,500 5,871,144 1999 3,757,000 700,000 378,000 1,078,000 4,835,000 2000 3,232,150 700,000 315,000 1,015,000 4,247,150 2001 2,338,750 700,000 252,000 952,000 3,290,750 2002 1,328,000 700,000 189,000 889,000 2,217,000 2003 639,000 700,000 126,000 826,000 1,465,000 2004 -0- 700,000 63,000 763,000 763,000 $144,544,336 $12,500,000 $12,636,000 $25,136,000 $169,680,336 " Dated: April 15, 1984 Principal Due: April 15, 1985 through 2004 First Interest Due: October 15, 1984, semi-annually thereafter April 15 and October 15 Average Maturity: 11.232 years Note: For purposes of illustration, the $12,500,000 Series 1984 Bonds calculated at an estimated interest rate of 9.00% "* As of January 31, 1984 12 Summary of Tax Supported Debt Service Requirements Summary of outstanding Tax Supported Debt requirements by years including the $12,500,000 General Improvement Bonds, Series 1984 calculated at an estimated interest rate of 9.00%. Fiscal Year Ending 7-31 Principal Interest Percent Of Total All Principal Issues Retired 1984 $ 3,950,000(1) $ 3,919,587(1) $ 7,869,587(1) 1985 7,040,000 7,192,300 14,232,300 1986 7,035,000 6,741,035 13,776,035 1987 7,010,000 6,254,120 13,264,120 1988 7,025,000 5,761,238 12,786,238 30.46% 1989 6,825,000 5,266,031 12,091,031 1990 6,750,000 4,772,806 11,522,806 1991 6,500,000 4,295,550 10,795,550 1992 6,475,000 3,843,063 10,318,063 1993 6,250,000 3,404,287 9,654,287 61.62% 1994 5,900,000 2,971,538 8,871,538 1995 5,675,000 2,558,812 8,233,812 1996 5,275,000 2,155,644 7,430,644 1997 5,125,000 1,774,006 6,899,006 1998 4,475,000 1,396,144 5,871,144 86.75 1999 3,775,000 1,060,000 4,835,000 2000 3,475,000 772,150 4,247,150 2001 2,775,000 515,750 3,290,750 2002 1,925,000 292,000 2,217,000 2003 1,300,000 165,000 1,465,000 2004 700,000 63,000 763,000 100.00% $105,260,000 $65,174,061 $170,434,061 (1) As of January 31, 1984 Interest and Sinking Fund Management A 10 year record of the City's policy of maintaining substantial reserves for the next year's debt service requirement on the City's General Improvement Bonds is set out below: Principal Tax Percent of Year And Interest Collections & I Sr SF Bal. at Next Year's Ended Requirements Other Income End of Year Requirements 7-31-1974 $ 6,175,390 8 6,709,113 $ 6,102,386 93.6% 7-31-1975 6,517,215 7,247,723 6,832,894 92.15 7-31-1976 7,422,800 7,814,050 7,224,144 95.05 7-31-1977 7,612,397 8,293,649 7,905,397 95.0% 7-31-1978 8,322,210 8,865,922 8,449,109 92.2% 7-31-1979 9,159,196 10,248,830 9,538,743 100.0% 7-31-1980 9,536,535 9,969,586 9,971,794 97.3% 7-31-1981 10,247,672 10,744,983 10,469,105 92.6% 7-31-1982 11,341,908 11,646,063 10,773,260 94.5% 7-31-1983 11,407,083 12,696,341 12,062,518 93.3% Detailed Interest and Sinking Fund Management Index 13 DETAILED INTEREST AND SINKING FUND Balance on Hand Previous Year REVENUES: Ad Valorem Taxes Hospital Dist. Payments Fund Contributions: Airport Airport Tower ... Gas Marina Water Wastewater Tourist & Convention Fund Interest on Investments: Reserve Fund Bond Construction Funds Other Revenues: Accrued Interest Rec Premium Rec Total Revenue Actual Actual 1979-80 1980-81 89,538,743 $ 9,971,794 $8,011,332 $ 8,085,454 158,989 300,000 90,326 11,200 25,584 MANAGEMENT INDEX Actual Actual Budget 1981-82 1982-83 1983-84 $10,469,105 $10,773,260 $12,062,518 $ 8,564,244 $ 9,551,332 $ 9,241,390 147,430 142,808 91,957 43,636 259,610 361,000 400,000 250,000 87,900 87,900 87,900 87,900 251,360 241,200 231,354 221,000 25,584 25,584 25,584 25,584 -0- -0- -0- -0- -0- 300,000 300,000 300,000 300,000 300,000 -0- 331,314 442,692 422,641 422,000 922,475 1,192,934 1,225,000 1,455,091 945,300 -0- -0- -0- -0- 1,500,000 149,045 -0- 118,317 129,996 98,000 635 63,397 -0- 486 -0- 89,969,586 $10,744,983 $11,646,064 $12,696,341 $13,134,810 EXPENDITURES: Principal $5,683,000 Interest .... ........ 3,850,769 Paying Agent Fees 2,766 Total Expenditures $9,536,535 $ 5,919,000 4,324,560 4,112 $10,247,672 $ 6,110,000 5,221,173 10,736 $ 6,000,000 8 6,445,000 5,398,943 6,509,225 8,140 8,796 $11,341,909 $11,407,083 $12,963,021 CLOSING BALANCE $9,971,794 $10,469,105 $10,773,260 $12,062,518 $12,234,307 Revenue Bond Obligations The table below shows the principal amount of the City's revenue bonds outstanding on January 31, 1984: Title of Bond Interest & Sinking Reserve Fund Fund Outstanding Balance Balance First Lien Waterworks System Revenue Bonds $24,575,000 $ 565,723 $1,200,710 Junior Lien Waterworks System Revenue Bonds $ 8,215,000 $1,606,366 $1,350,640 Wastewater System Revenue Bonds $ 50,000 $ 59,389 $ 127,674 Golf Center Revenue Bonds $ 352,000 $ 51,391 N/A The waterworks and wastewater disposal system are operated as separate utility systems, and the debt requirements are met from pledges of the revenue of each separate system. 14 CITY OF CORPUS CHRISTI, TEXAS 15 NOTES TO FINANCIAL STATEMENTS YEAR ENDED JULY 31, 1983 2. Summary of Significant Accounting policies (Continued) C. Account Groups Account groups are concerned only with the measurement of financial position. They are not involved with measurement of results of operations. General Fixed Assets Account Group is a self -balancing group of accountsused to account for excludinggeneral fixedfixed assets ofEnterprise acquired for general City purposes and Internal Service Funds. General Long -Term Obligation Account Group is used to record long- term liabilities expected to be financed from governmental funds. D. Basis of Accounting Basis of accounting refers to when revenues and expenditures, or expenses, are recognized in the accounts and reported in the financial statements, regardless of the measurement focus applied. (1) All Government Funds and Expendable Trust Funds are accounted for using the modified accrual basis of accounting. Their revenues are recog- nized when they become measurable and available as net current assets. These include general property taxes, grants-in-aid earned and other intergovernmental revenues, rents, refuse collections and hotel -motel tax. Major revenues that are determined not to be susceptible to accrual because they are either not available soon enough to pay liabilities of the current period or are not objectively measurable include delinquent property taxes, franchise taxes, sales tax, permits, fines and forfeitures. Expenditures are generally recognized under the modified accrual basis of accounting when the related liability is incurred. Exceptions to this general princile include: and interest onaccumulated generalunpaid long-termion debtnwhichsick is pay; and (2) principal recognized when due. (2) All Proprietary Funds are accounted for using the accrual basis of accounting. Their revenues are recognized when earned, and their expenses are recognized when they are incurred. Utility revenues billed to customers are read on a monthly basis. Unbilled service accounts receivable have been estimated at July 31 and are appro- priately recorded as revenue. Interest costs, less interest earned on interest-bearing investments acquired with proceeds of related borrowings, are capitalized during the construction of major capital projects. During 1983, $506,165 of net interest expense was capital- ized. This amount represents $2,489,390 of interest expense less $1,983,225 of interest income. 16 CITY OF CORPUS CHRISTI, TEXAS NOTES TO FINANCIAL STATEMENTS YEAR ENDED JULY 31, 1983 2. Summary of Significant Accounting Policies (Continued) E. Fixed Assets Accounting (1) Governmental funds are designed to account for available spendable resources or net current assets. General fixed assets do not repre- sent available spendable resources and consequently are not assets of any fund but are assets of the City as a whole. The primary purposes tor governmental fund accounting are to reflect its revenues and ex- penditures, the sources and uses of its financial resources, its assets, the related liabilities, and the net financial resources avail- able for subsequent appropriation and expenditures. These objectives can most readily be achieved by excluding General Fixed Assets from the governmental fund accounts and recording them in a separate General Fixed Assets Account Group. Fixed assets are recorded at cost if purchased or constructed. Donated assets are recorded at estimated market value as of the date of donation. Public domain or "infrastructure" fixed assets such as roads, bridges, curbs, gutters, streets, sidewalks, drainage system and similar assets constructed by the City, are recorded at cost. No depreciation has been provided on General Fixed Assets. (2) Proprietary Funds: Fixed assets of Enterprise Funds and Internal Service Funds are capi- talized in the fund accounts because the fixed assets are used in the production of goods or services sold. Fixed assets are recorded at cost if purchased or constructed. Donated assets are valued at esti- mated market value as of the date of donation. Depreciation of these fixed assets are recorded as an expense to determine total expense, net income and changes in fund equity. These fixed assets may also serve as security for debt. Accumulated depreciation is reported on pro- prietary fund balance sheets. Depreciation has been provided over the estimated useful lives using the straight line method. The estimated useful lives are as follows: Water pipelines Gas pipelines 80-100 years 57 years Water, Gas and Wastewater buildings, treatment plants, filter plants and other structures 12-80 years Runways and related improvements 25 years Terminals, hangars and other related buildings 25 years Motor buses 12 years Vehicles 5-25 years Machinery and other equipment 9-40 years Office furniture 10 years Debt Service Requirements Revenue Bonds Waterworks System Wastewater System Golf Center First Junior Total Total Fiscal Year Lien Lien Total Ending 7-31 Bonds Bonds Reqmts. Regmta. Reqmts. 1984 $ 2,743,938 $1,383,063 $ 4,127,001 $157,419 $ 65,420 120 1985 2,720,875 1,384,326 4,105,201 59,840 1986 2,697,812 1,378,645 4,076,457 57,200 1987 2,674,750 1,381,236 4,055,986 5 1988 2,651,688 1,381,667 4,033,355 54,560,560 1989 2,628,625 1,379,938 4,008,563 51,920 1990 2,605,562 1,376,049 3,981,611 46,64049 1991 3,957,500 3,957,500 1992 3,893,500 3,893,500 1993 3,819,250 3,819,250 1994 3,734,750 3,734,750 1995 3,640,000 3,640,000 1996 3,435,000 3,435,000 1997 3,230,000 3,230,000 1998 3,025,000 3,025,000 1999 2,820,000 2,820,000 2000 2,615,000 2,615,000 2001 2,410,000 2,410,000 2002 2,205,000 2,205,000 $57,508,250 $9,664,924 $67,173,174 $157,419 $449,680 Summary Debt Statement The following table shows the amount of bonded indebtedness and estimated overlapping debt of the City as of January 31, 1984 as adjusted to give effect to the issuance of these $12,500,000 General Improvement Bonds. Pro Forma Bonded Indebtedness Tax Supported Debt: $86,860,000 General Improvement Bonds 400,000 Tax Certificates of Obligation 5,400,000 Tax and Revenue CertiffcatesofObligation 12,500,000(1) $105,260,000 THE BONDS Revenue Debt: First Lien Waterworks System Revenue Bonds $24,575,000 Junior Lien Waterworks System Revenue Bonds8,215,000 5,000 Sewer System Revenue Bonds 5350,000 33,192,000 Golf Center Revenue Bonds ,492,000 Total Direct Bonded Indebtedness $13338,411,000 Estimated Overlapping Debt Total Direct and Estimated Overlapping Bonded Indebtedness $180,163,895 (1) Such amount was not outstanding on January 31, 1984 but is included for the purpose of giving effect to the issuance of the Bonds. 15 CITY OF CORPUS CHRISTI Population and Location Corpus Christi is now the seventh largest city in the State of Texas with a corrected official population of 232,134 based on the 1980 Census. Misallocated population was discovered after data was released for publication. Published reports for Corpus Christi will show a population count of 231,999. The City holds the fifth ranking spot in percentage of population change over the 1970-1980 decade. It is estimated that the City's population is about 246,034 for 1983. The geographic location of the City on the Gulf of Mexico and the Intercoastal Waterway gives it one of the most strategic locations in the Southwest and has been important to its economic development. From its early days, Corpus Christi has been a focal point for the marketing, processing, packaging and distribution of agricultural commodities in a twelve -county trade area. Port of Corpus Christi opened the city to world commerce in 1926. Additional general information concerning the City's population and economy will be found under the caption "Economic and Demographic Characteristics". Area and Topography The area of the City has increased through annexations as the City's population and industry grew. The City has had numerous annexations, which have been orderly, and now contains approximately 392 square miles, which is broken down to approximately 117 square miles of land and 275 square miles of water. While the area covered by water contains no population and does not require normal city services, it does produce considerable revenues from oil and gas properties located therein. The topography of Corpus Christi is generally flat with rich soils broken by numerous bays. The elevation ranges from sea level to eighty-five feet. Form of Government and Administration The City was incorporated in 1852. It operated as a general law city until 1926 when a Home Rule Charter with a commission form of government was adopted. The Charter was amended in 1945 and the present Council — Manager form of government was adopted. The City Council consists of the Mayor and eight Councilmembers, all elected for two year terms. The Mayor and three Councilmembers are elected at large and five Councilmembers from single member districts. These nine Officials are listed on page four of this document. The City Manager is appointed by the City Council and is the Chief Administrative and Executive Officer. The Director of Finance is appointed by the City Manager and is charged with the administration of fiscal affairs. The City Council fixes the annual tax rate based on a budget prepared under the direction of the City Manager. The Director of Finance also serves as the assessor and collector of taxes. The names and years of service of these appointed officials appear on page four of this document. The City has approximately 3,136 employees. Certain Governmental Services Provided by the City Public Safety...The City provides police protection, fire protection, building inspection, street lighting and traffic signals and civil defense. Law enforcement and civil defense is provided through the Police Department. The City's Fire Department operates 13 fire stations throughout the City and the A.I.D. Emergency Ambulance Service. The ambulance service is operated jointly by the City and Nueces County Hospital District. The City is responsible for the purchase, operation, maintenance, equipping, housing and staffing of the ambulances and the communications system. The Nueces County Hospital District is responsible for paramedical training of personnel who operate the ambulances and the accounting for and the collection of all ambulance service fees. The City and the District divide any operating loss on a fifty-fifty basis. 16 CITY OF CORPUS CHRISTI, TEXAS 17 NOTES TO FINANCIAL STATEMENTS YEAR ENDED JULY 31, 1983 2. Summary of Significant Accounting Policies (Continued) E. Fixed Assets Accounting (Continued) (2) Proprietary Funds (Continued): Depreciation is recognized in the Airport Fund an assets provided by Federal Aviation Agency Grants and in the Transit Fund on assets pro- vided by Urban Mass Transportation Administration and State of Texas Capital Grants. The depreciation on these grant financed improvements is closed to contributed capital at year end. F. Long -Term Obligations (1) Long-term liabilities of proprietary funds consist of bonds, notes and other long-term liabilities directly related to and expected to be paid entirely by the proprietary funds. These liabilities are included in the accounts of such funds. (2) General Long -Term Obligations: All other unmatured long-term indebtedness of the City is general long- term debt and is accounted for in the General Long -Term Obligation Account Group. General long-term debt is the unmatured principal of bonds, notes, warrants, or other forms of long-term obligation indebt- edness that is not a specific liability of any proprietary or other fund. The general long-term debt is secured by the general credit and taxing powers of the City; however, proprietary funds may transfer funds to the Debt Service Fund to assist in repaying bonds issued to purchase assets contributed to the proprietary fund. G. Budgets and Budgetary Accounting. Annual budgets are adopted for the General, Special Revenue, Debt Service and Proprietary Funds. Budgets are adopted on a basis consistent with generally accepted accounting principles. Capital Projects Funds are budgeted on a project basis. The budgets are submitted to the City Council prior to August 1, the beginning of the fiscal year. All budgets and the tax levy are legally enacted through passage of an ordinance. The City Manager is authorized to transfer appropriated amounts between expenditure accounts within any department of a fund. Revisions that amend the total expenditures of a department or fund must be approved by the City Council. Formal budgetary accounting is employed as a management control technique to assist in controlling revenues and expenditures. The budgetary accounts, i.e., Estimated Revenues and Appropriations, are recorded in each fund's general ledger and reported on monthly balance sheets, statements of actual and estimated revenues and statements of expenditures, encumbrances and appropriations. 18 CITY OF CORPUS CHRISTI, TEXAS NOTES TO FINANCIAL STATEMENTS YEAR ENDED JULY 31, 1983 2. Summary of Significant Accounting Policies (Continued) H. Encumbrances Encumbrance accounting, under which purchase orders, contracts and other commitments for the expenditure of monies are recorded in order to reserve that portion of the applicable appropriation, is employed as an extension of formal budgetary accounting in the General Fund, Special Revenue Funds and Debt Service Funds. Encumbrances outstanding at year end are reported as reservations of fund balances since they do not constitute expenditures or liabilities. While appropriations lapse at year end, outstanding encum- brances at year end are reappropriated in the following year. I. Investments Investments are valued at cost. Funds are invested in accordance with applicable provisions of State law, City Charter and the depository bank contract. J. Inventories Inventories are valued at the lower of cost or market on the first -in, first -out or the average cost basis. The nature of the inventory determines which cost method is used. All inventory purchases are recorded as inventory acquisitions (current assets) at the time of purchase and charged to the various activities, funds or departments when issued as documented on Stores Requisitions. Reported inventories in governmental funds are equally offset by a fund balance reserve which indicates that they do not constitute "available spendable resources" even though they are a component of net current assets. K. Accumulated Unpaid Compensated Absences Accumulated unpaid compensated absences are accrued when incurred in pro- prietary funds (using accrual basis of accounting). The current portion (amount to be liquidated with expendable available financial resources) is accrued in governmental funds and the non-current portion is reflected in the General Long -Term Obligation account group (using the modified accrual basis of accounting). L. Comparative Data Comparative total data for the prior year has been presented in the accompanying financial statements in order to provide an understanding of changes in the City's financial position and operations. However, compara- tive (i.e., presentations of prior years totals by fund type) data has not been presented in each of the statements since their inclusion would make the statements unduly complex and difficult to read. M. Total Columns on Combined Statements - Overview Total columns on the Combined Statements - Overview, are captioned Memo- randum Only to indicate that they are presented only to facilitate financial analysis. Data in these columns does not present financial position, CITY OF CORPUS CHRISTI, TEXAS 19 NOTES TO FINANCIAL STATEMENTS YEAR ENDED JULY 31, 1983 • 2. Summary of Significant Accounting Policies (Continued) M. Total Columns on Combined Statements - Overview (Continued) results of operations, or changes in financial position in conformity with generally accepted accounting principles. Neither is such data comparable to a consolidation. Interfund eliminations have not been made in the aggregation of this data. N. Capital Projects for Enterprise Funds Construction projects financed by general obligation bonds for the Airport and Wastewater Disposal System are recorded in the Capital Projects Funds. They will be transferred to their respective enterprise fund as contri- butions when construction is complete. 3. Property Taxes Property taxes attach as an enforceable lien, superior to all others, as of January 1. Taxes are levied upon passage of an ordinance setting the tax rate the following July at the same time the budget is adopted. Taxes are delinquent February 1 of the following year. The City bills and collects its own taxes and also collects taxes for the Corpus Christi Independent School District, Corpus Christi Junior College District and the Lower Nueces River Water Supply District. All collections and distributions to the City and the other taxing agencies are accounted for in the Tax Clearing Agency Fund. On April 5, 1980, the City Charter was amended by the voters limiting the tax rate for all purposes, including debt service, to $0.68 per $100 of assessed value. The 1982-83 tax rate was $0.3467 for the General Fund and $0.2213 for Debt Service for a total of $0.568, which means that the City has a tax margin of $0.112 per $100 and could raise up to $5,231,500 additional a year from the present assessed valuation of $4,671,000,000 before the limit is reached. 4. Special Assessments Certain projects reported in the Street Capital Project Fund are partially financed by special assessments levied against the property receiving the benefit of public improvements or services. The amount of special assessment levies is immaterial and does not warrant the creation of a separate Special Assessment Fund. Therefore, special assessment revenues and receivables resulting from these levies are reflected in the Capital Projects Funds. 5. Due from Other Governmental Agencies Amounts due from other governmental agencies include $2,456,844 in the Capital Projects Fund. Of this amount, $624,128 is due from the Federal Aviation Agency for Airport improvements and $1,832,716 from the Environmental Protection Agency. Other amounts due are not material. 20 CITY OF CORPUS CHRISTI, TEXAS NOTES TO FINANCIAL STATEMENTS YEAR ENDED JULY 31, 1983 6. Changes in General Fixed Assets A summary of changes in general fixed assets follows: Balance Deletions/ Balance 8-1-83 Additions Transfers 7-31-83 Land $ 26,225,868 $ 336,540 $ -- $ 26,562,408 Buildings 19,030,439 1,625,187 476,927 20,178,699 Improvements other than buildings 107,337,457 9,178,218 -- 116,515,675 Machinery and equipment 18,809,438 2,715,891 590,484 20,934,845 Total 171,4032202 113,855,836 1A0672411 1184,1912627 A summary of proprietary fund type property, plant and equipment at July 31, 1983 follows: Enterprise Funds Internal Service Funds Land $ 3,461,836 $ -- Buildings 16,131,128 487,921 Improvements other than buildings 149,932,444 -- Machinery and equipment 11,450,888 694,244 Construction in progress 18,243,854 -- $199,220,150 $ 1,182,165 Less accumulated depreciation 51,965,040 551,418 Total 11472255,110 9 630,747 7. Long -Term Debt The following is a summary of bond transactions of the City for the year ended July 31, 1983: Bonds payable at August 1, 1982 New bonds issued: General Obligation - Series 1982 Series 1983 Bonds retired Bonds payable at July 31, 1983 General Certificates Obligation of Obligation Revenue Total $73,115,000 $ 7,070,000 $47,501,000 $127,686,000 10,525,000 10,525,000 11,045,000 11,045,000 (5,550,000) (450,000) (1,504,000) (7,504,000) 8921352000 9_6,620,000 145,997,000 2141,752,000 CITY OF CORPUS CHRISTI, TEXAS NOTES TO FINANCIAL STATEMENTS YEAR ENDED JULY 31, 1983 7. Long -Term Debt (Continued) Bonds payable at July 31, 1983 are comprised of the following: General Obligation Bonds: $6,000,000 1973 G.O. bonds due in annual installments of $300,000 to $500,000 through April 1, 1993; interest at 4% to 5.2% $3,000,000 1974 $225,000 through $6,800,000 1975 $400,000 through $3,500,000 1976 $200,000 through G.O. bonds due in annual installments of June 1, 1994; interest at 4.5% to 5.7% G.O. bonds due in annual installments of March 1, 1995; interest at 5% to 6% G.O. bonds due in annual installments of April 15, 1996; interest at 4.75% to 5% $10,840,000 1977 G.O. bonds due in annual installments of $150,000 to $500,000 through July 1, 1997, interest at 4% to 6% $16,000,000 1978 G.O. bonds due in annual installments of $200,000 to $750,000 through November 15, 1998; interest at 3.75% to 5.75% $7,375,000 1979 G.O. bonds due in annual installments of $250,000 to $450,000 through November 15, 1999; interest at 5.5% to 7.5% $7,000,000 1980 G.O. bonds due in annual installments of $100,000 to $400,000 through November 15, 2000; interest at 7% to 9% $8,000,000 1981 G.O. bonds due in annual installments of $150,000 t� $450,000 through July 15, 2001; interest at 9.5% to 12% $10,525,000 1982 G.O. bonds due in annual installments of $225,000 to $625,000 through November 1, 2001; interest at 8% to 10.5% $11,045,000 1983 G.O. bonds due in annual installments of $220,000 to $600,000 through June 1, 2003; interest at 6.5% to 9.5% Miscellaneous small bond issues due in annual installments ranging from $20,000 to $500,000 through January 10,1982; interest rates ranging from 2.75% to 6.7% 21 $ 3,500,000 2,475,000 4,800,000 2,600,000 8,500,000 13,450,000 6,775,000 6,800,000 7,700,000 10,525,000 11,045,000 10,965,000 $ 89,135,000 22 CITY OF CORPUS CHRISTI, TEXAS NOTES TO FINANCIAL STATEMENTS YEAR ENDED JULY 31, 1983 7. Long -Term Debt (Continued) Certificates of Obligation: $5,950,000 1979 Certificates of Obligation due in annual installments of $250,000 to $425,000 through November 15, 1999; interest at 5.5% to 7.5% $ 5,350,000 $470,000 1981 Certificates of Obligation due in annual installments of $70,000 to $100,000 through October 1, 1990; interest at 10.75% to 11.65% (Called October 1, 1983) 470,000 Miscellaneous smaller Certificates of Obligation issues due in annual installments ranging from $50,000 to $200,000 through June 1, 1991; interest ranging from 5.2% to 5.7% 800,000 Revenue Bonds: All these issues are being serviced - principal and interest - by the Enterprise Funds indicated below: $7,895,000 1975 Junior Lien Water Revenue Bonds due in annual installments of $500,000 through July 10, 1990; interest at 4.125% $7,105,000 1977 Junior Lien Water Revenue Bonds due in annual installments of $535,000 to $820,000 through July 10, 1990; interest at 4.32% $25,000,000 1981 First Lien Waterworks System Revenue Bonds due in annual installments of $200,000 to $2,000,000 through July 10, 2002; interest at 10.5% to 13% $13,000,000 Nueces River Authority Water Supply Revenue Bonds due in annual installments of $100,000 to $950,000 through April 1, 2009; interest at 5.0% to 6.5% (Note 10 B) $3,000,000 1974 and 1975 Wastewater Disposal System Revenue Bonds due in installments of $20,000 to $80,000 on January 15, 1984; interest at 3% to 3.25% $440,000 1981 Golf Center Revenue Bonds due in annual installments of $44,000 through February 1, 1991; interest at 6%. 2666}620,000 $ 3,500,000 4,715,000 24,575,000 12,700,000 155,000 352,000 2s45a997A400 The annual requirements to amortize all bonded debt outstanding as of July 31, 1983, including interest payments of $105,624,678, are as follows: 24 CITY OF CORPUS CHRISTI, TEXAS NOTES TO FINANCIAL STATEMENTS YEAR ENDED JULY 31, 1983 9. Interfund Receivables and Payables General Fund Tourist and Convention Fund Marina Revenue Fund Parking Improvement Fund General Revenue Sharing Fund Federal/State Grant Fund Debt Service Fund Capital Projects Fund Water System Fund Gas System Fund Wastewater Disposal System Fund Airport Fund Transit Fund AID Ambulance Fund Corpus Christi Golf Center Fund Stores Fund Maintenance Service Fund Data Processing Fund Insurance Fund Trust Fund Utilities Deposit Fund Tax Clearing Fund Vouchers Payable Fund Coastal Bend Consortium 1983 Interfund Receivables $ 2,160,232 1,567 15,532 85 42,996 1,809,533 123,793 99,907 524,964 1,551 61,491 301,481 256,990 760,471 88,879 11,675 315,000 435,394 267 7,011,_808 Interfund Payables $ 885,532 3,815 1,385 1,017,592 2,116,418 634,087 270,887 1,338,681 178,476 21,545 15,827 47,076 4,856 21,355 1,698 64,621 39,672 75,659 135,385 100,000 37,241 $ 7L011i808 10. Water System A. Water Supply Contracts (1) Lower Nueces River Water Su 1 District Contract Corpus Christi's water supply is from the Nueces River Watershed im- pounded 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 CITY OF CORPUS CHRISTI, TEXAS NOTES TO FINANCIAL STATEMENTS YEAR ENDED JULY 31, 1983 23 Long -Term Debt (Continued): Annual Requirements to Amortize Long -Term Debt July 31, 1983 Year Ending General Jul 31 Certificates y Obligation of Obligation Revenue Total 1984 $ 12,034,246 $ 949,995 $ 5,406,881 $ 18,336,651 1985 11,823,237 1,086,533 5,406,881 18,316,651 1986 11,508,760 817,245 5,356,310 17,682,315 1987 10,989,658 855,057 5,316,302 17,208,726 1988 10,509,838 741,120 5,316,302 16,567,260 1989-1993 44,337,387 2,877,350 25,774,702 72,989,439 1994-1998 29,376,069 1,912,575 15,059,950 26,354,850 1999-2003 10,661,900 633,000 15,059,950 26,354,850 2004-2008 -- 2009 -- 4,958,500 4,958,500 141 241 9 997,500 997,500 X241,0095 19872,875 1.26,2621Za lal7Ala,A1,78 $12,062,518 is available in the Debt Service Fund to service general obligation bonds. Total general obligation bonds authorized but unissued at July 31, 1983 are $23,894,000. $1,014,000 was retained by the Trustee out of the proceeds of the Nueces River Authority Water Supply Revenue Bonds to pay the maximum amount of principal and interest of all outstanding bonds in any fiscal year. (See Note 10 B) There are a number of limitations and restrictions contained in the various bond indentures. The City is in compliance with all significant limitations and restrictions. 8. Fund Deficits in Individual Funds A. Airport Fund - The accumulated deficit of $2,178,100 may be reduced by an increase in user fees to offset debt service requirements. There is no deficit in total fund equity. B. Transit Fund - The accumulated deficit of $583,292 will continue to accumulate because user fees cannot be increased to the extent necessary to match or exceed expenses. There is no deficit in total fund equity. C. Federal/State Grant Fund - The accumulated deficit of $398,282 will be reduced by future grant receipts. CITY OF CORPUS CHRISTI, TEXAS 25 NOTES TO FINANCIAL STATEMENTS YEAR ENDED JULY 31, 1983 •10. Water.System (Continued) A. Water Supply Contracts (Continued) (1) Lower Nueces River Water Supply District Contract (Continued) 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, 1983, the District had outstanding bonds payable totaling $2,780,000 which mature annually through 1986. B. Choke Canyon Dam The U. S. Department of the Interior, through the Bureau of Reclamation (the Bureau) has constructed a 700,000 acre feet dam on the Frio River known as the Choke Canyon Dam (the Project). The City and the Nueces River Authority (the Authority) are local sponsors of the Project. The Authority is an agency of the State of Texas with the power and the responsibility to develop and conserve water resources within the Nueces River Basin. The City and Authority have entered into an agree- ment with the Bureau whereby they will provide a portion of the funds necessary to construct the dam. The dsm site shall remain the property of the Bureau. The City and Authority have the right to impound water in the Project's reservoir and the uses therefrom for any purpose. These rights are owned in perpetuity and are held 80% by the City and 20% by the Authority. In a separate agreement between the City and the Authority, the Authority is to provide certain services to the City in connection with the construc- tion and operation of the dam. In consideration for these services and for the Authority's 20% interest in the Project's water, the City agreed to pay the Authority $100,000 per calendar year plus additional sums for water used as specified in the agreement. The City is responsible for the care, operation and maintenance of the Project which must be carried out in compliance with applicable government requirements. The following is a summary of project costs to be paid by the City as of July 31, 1983: 26 CITY OF CORPUS CHRISTI, TEXAS NOTES TO FINANCIAL STATEMENTS YEAR ENDED JULY 31, 1983 10. Water System (Continued) B. Choke Canyon Dam Total project costs excluding costs for recreation and fish and wildlife facilities Advances paid to the Bureau which were funded by: Proceeds from the 1975 Junior Lien Water Revenue Bonds issued by the City which released First Mortgage Waterworks bond reserves Proceeds from the 1977 Junior Lien Water Revenue Bonds issued by the City Proceeds from the 1979 Water Supply Revenue Bonds issued by the Authority Interest earned on investments Total advances paid to the Bureau $ 3,086,098 7,087,615 11,808,350 2,492,937 Remainder of Project costs payable to the Bureau $67,582,367 24,475,000 5143a107A367 Total project costs will be amortized over 100 years beginning with the initial draw of water from the reservoir. Although the 1979 Water Revenue Bonds are a special revenue obligation of the Authority, the City is unconditionally required to pay the bond trustee for the account of the Authority amounts sufficient to pay the bond prin- cipal and interest. Payments by the City to the trustee will be made solely from the gross revenues of the City's Waterworks System. Therefore, the liability of the bonds is reflected in the financial statements of the City's Water System enterprise fund. All project costs are recorded as Water Rights in the Water System enterprise fund. Construction of recreation and fish and wildlife facilities at the Project are to be completed at a future date. The City is committed to fund approximately $12,000,000 of these costs. The resulting obligation to the Bureau for this funding will be payable over a 50 -year period at an interest rate yet to be determined. Subsequent to year end, the City reached an agreement with the U. S. Department of the Interior for the repayment of the remaining $43,107,367 in project costs. Principal and interest are payable over 40 years in annual installments of varying amounts with interest at 5.116%. Principal and interest payments on $31,087,889 of the obligation have been deferred until 1993. The contracted amount of annual payments in the early years of the repayment schedule is not sufficient to pay interest due on the obliga- tion; therefore, the principal balance of the obligation will increase. Annual payment (addition) of principal and interest is as follows: CITY OF CORPUS CHRISTI, TEXAS 27 NOTES TO FINANCIAL STATEMENTS YEAR ENDED JULY 31, 1983 .10. Water System (Continued) B. Choke Canyon Dam (Continued) Year Ending July 31 Principal Total Interest Payment 1984 $ (580,816) $ 614,916 $ 34,100 1985 (499,531) 644,631 145,100 1986 (398,287) 670,187 271,900 1987 (307,763) 690,563 382,800 1988 (196,709) 706,309 509,600 1989-1993 825,859 3,560,841 4,386,700 1994-1998 (4,126,634) 11,794,334 7,667,700 1999-2003 2,816,353 12,357,050 15,173,403 2004-2008 7,540,539 10,924,966 18,465,505 2009-2013 9,677,129 8,788,376 18,465,505 2014-2018 12,419,117 6,046,388 18,465,505 2019-2023 15,938,110 2,527,468 18,465,578 .S43,107.067 L59,3262.029 11024U2,396 11. Lease Commitments The City leases office space and data processing equipment under various opera- ting lease agreements. All of the City's lease agreements are cancellable. As of July 31, 1983, the City had cancelled substantially all of its equipment leases, and any remaining leases are immaterial. Subsequent to year end, the City entered into a five year lease -purchase agreement in the amount of $1,403,515 for a central data processing unit and supporting equipment. Payments are made semi-annually, including interest, in the amount of $167,220. 12. Restatements and Reclassifications A. Accounting Changes The City has made several accounting changes in 1983 in accordance with generally accepted accounting principles. All 1982 financial statements have been restated to apply these changes retroactively. These changes are as follows: Combined Enterprise Fund (1) Recognition of vacation and sick pay expense as incurred. In prior years, the City recognized this expense when paid. (2) Recognition of revenue for utility services provided but not billed prior to year end (unbilled receivables). Previously, revenue was recognized only for amounts billed. (3) Recognition of interest income relating to interest bearing invest- ments on the accrual basis. Revenue was recognized as received in prior years. 28 CITY OF CORPUS CHRISTI, TEXAS NOTES TO FINANCIAL STATEMENTS YEAR ENDED JULY 31, 1983 12. Restatements and Reclassifications A. Accounting Changes (Continued) Combined Enterprise Fund (Continued) (4) Capitalization of interest costs incurred during the construction of fixed assets. All interest was expensed as paid in prior years. (5) Recognition of certain grants and reimbursements as non-operating revenues. These amounts were reported as contributions in prior years. (6) Recognition of Bond Fund contributions as contributed capital. These amounts were previously reported as additions to retained earnings. (7) Recognition of water rights and corresponding liabilities relating to the Choke Canyon Water Supply Project (Note 10 B). In prior years, the asset was recorded and retained earnings were reserved as payments were made. (8) Inclusion of the FAA Tower Revenue Fund in the financial statements of the Airport Fund. Previously, this fund was reported separately. (9) Reclassification of certain restricted liabilities to reserved retained earnings. The effects of these restatements on the Combined Enterprise Fund financial statements are as follows: Effect on Net Income Year Ended July 31, 1983 Effect on Retained Earnings July 31, 1982 (1) Accrued vacation and sick pay $ (171,716) $ (690,515) (2) Unbilled receivables 170,635 2,671,706 (3) Accrued interest receivable (1,949,351) 2,194,593 (4) Capitalization of interest 506,165 (183,726) (5) Nonoperating revenues - grants 2,881,201 13,683,308 (6) Bond Fund contributions -- (17,345,601) (7) Choke Canyon Dam Project -- (4,505,789) (8) FAA Tower Revenue Fund (1,815) 28,009 (9) Restricted liabilities 212,441 178,974 L1A647A560 1m13A9693041a General Fund (10) Recognition of revenue for refuse services provided but not billed prior to year end (unbilled receivable). Previously, revenue was recognized only for amounts billed. The effects of this change on revenue for the year ended July 31, 1983 and fund balance as of July 31, 1982, were $48,132 and $271,352, respectively. Combined Internal Service Fund (11) Recognition of vacation and sick pay expense as incurred. In prior years, the City recognized this expense when paid. (12) Tranfer of certain fixed assets to Maintenance service Fund from the General Fixed Asset Account. 30 CITY OF CORPUS CHRISTI, TEXAS NOTES TO FINANCIAL STATEMENTS YEAR ENDED JULY 31, 1983 12. Restatement and Reclassifications (Continued) C. Reclassification of Funds Federal/State Grant Funds have been reclassified from Expendable Trust Funds to Special Revenue Funds. Utility Deposit Fund has been reclassified from Expendable Trust Fund to Agency Fund. These reclassifications resulted in no significant changes to the City's total fund equities. The 1982 balances of the funds were restated for comparison purposes. D. New Fund The Corpus Christi Housing Improvement Corporation has been added to Special Revenue Funds (Note 2 A). The effect on the City's total fund equity is as follows: Reserved for loans Unreserved July 31, 1983 July 31, 1982 $ 3,547,003 63,532 �_3Z610�535 $ 1,993,042 34,998 L2A028L030 The 1982 balances of the Special Revenue Funds were restated for comparison purposes. E. Other Reclassifications Certain reclassifications have been made to the 1982 financial statements to conform to the 1983 presentations. 13. Contingent Liabilities and Insurance A. Miscellaneous Tort Claims The City of Corpus Christi has been self-insured for tort claim liability since November 1968. This self-insurance program covers aggregate losses up to $1,000,000. Excess liability policies in effect from August 30, 1979 to August 30, 1982 provided an additional $5,000,000 in protection. Effective August 30, 1982 the limits were increased to $15,000,000. The estimated liability for tort claims at July 31, 1983 aggregated $462,000. This estimate was determined by a Claims Review Committee comprised of City employees and Gallagher -Bassett Insurance Service and reflects the estimated actual exposure on all tort claims filed against the City. Claims filed at July 31, 1983 allege damages in the aggregate in excess of $10,000.000. CITY OF CORPUS CHRISTI, TEXAS 29 NOTES TO FINANCIAL STATEMENTS YEAR ENDED JULY 31, 1983 12. Restatement and Reclassifications (Continued) A. Accounting Changes (Continued) Combined Internal Service Fund The effects of these restatements on the combined Internal Service Fund financial statements are as follows: Effect on Effect on Fund Equity Net Income at July 31, 1982 Year Ended Earnings Contributed July 31, 1983 Retained Capital (11) Accrued vacation and sick pay $ (33,790) $ (92,284) $ -- (12) Fixed asset transfer (9,978) (100,154) 476,927 143Z7681 Li122.,4381 S4762.927 Capital Projects Fund (13) Recognition of special assessment revenues when they become measurable and available as net current assets. These revenues were recognized on the accrual method in prior years. (14) Recognition of grant revenues when they become measurable and avail- able as net current assets. These revenues were previously recognized at the time the construction contracts were awarded. The effects of these restatements on the Capital Projects Fund financial statements are as follows: (13) Special assessments (14) Grant revenues Effect on Excess of Revenue over Expenditures Effect on Year Ended Fund Balance July 31, 1983 at July 31, 1982 $ (61,469) $ (929,331) (6,154,575) (9,530,708) _56�216�044� 1.011.460s0391 General Long -Term Obligation Account Group The General Long -Term Obligation Account Group at June 30, 1982 has been restated to include the accrual for uncompensated vacation and sick pay, $5,528,105, which represents the aggregate liability of all Governmental Funds. B. Prior Period Adjustment The balance of retained earnings of the Gas System Fund at July 31, 1982 has been restated from the amount previously reported to correct an accounting error in the amount of natural gas purchased. As a result of the restatement, the Gas System Fund's retained earnings at July 31, 1982 has been decreased by $1,192,931. CITY OF CORPUS CHRISTI, TEXAS 31 NOTES TO FINANCIAL STATEMENTS YEAR ENDED JULY 31, 1983 13. Contingent Liabilities and Insurance (Continued) B. Civil Rights Claims In July 1981, six persons sued the City of Corpus Christi , the Chief of Police and the City Manager and individual police officers claiming approximately $2,500,000 in damages for alleged civil rights violations. Before the case went to trial, five more persons joined the plaintiffs. As a result of a 13 week trial this past year, the jury exonerated the City and the remaining defendant police officers after the Chief of Police and City Manager were dismissed from the lawsuit. Thus far, only four of the plaintiffs have appealed. That appeal was recently ordered dismissed by the Court of Appeals, 13th Supreme Judicial District, Corpus Christi, on procedural grounds. Plaintiffs have filed a Motion for Rehearing which is pending. While the first series of police liability cases was pending, a second series of similar cases was filed in 1982 by the American Civil Liberties Union alleging approximately $1,500,000 in damages for civil rights viola- tions against the City and individual police officers. Trials in these cases were completed in November of 1983 and virtually all claims were dismissed or decided in favor of the City and its employees. One case has a possibility of being appealed and the claim for damages in that case has been substantially reduced. C. Insurance Effective August 1, 1982, the City became self-insured for Group Health Insurance and on March 1, 1983, the City became self-insured for Workmen's Compensation insurance. Subsequent to year end, with the exception of Group Health Insurance, the City placed all insurance and claims handling with one carrier. At that time, the City's total maximum exposure was increased to $2,700,000 and the excess liability policies were increased to $25,000,000. 14. Liabilities of Pension Funds A. Texas Municipal Retirement System All permanent employees of the City, other than firemen and employees who were over 55 years of age at the time of their employment, are covered by a State-wide retirement plan administered by the Board of Trustees of the Texas Municipal Retirement System. The City's contribution is calculated annually by actuaries of the System using the unit credit method which for the calendar year 1983 is 7.9% of gross salaries. Total contributions for the fiscal year ending July 31, 1983 were $3,535,207. At December 31, 1982, the unfunded liability for prior service benefits was $27,574,942, which, beginning January 1, 1982, are being amortized over 25 years. S2 CITY OF CORPUS CHRISTI, TEXAS NOTES TO FINANCIAL STATEMENTS YEAR ENDED JULY 31, 1983 14. Liabilities of Pension Funds (Continued) B. Firemen's Relief and Retirement Fund The Firemen's Relief and Retirement Fund is established and controlled through State legislative enactments. The retirement fund is administered locally by a seven member board, independent of the City Council. City management does not influence or control the Firemen's Relief and Retire- ment Fund, and the assets of the Fund are not the property of the City. The seven member Board of Trustees, composed of the Mayor and Director of Finance as ex -officio trustees, three firemen elected by majority vote of firemen, and two citizens who must be appointed unanimously by the first five trustees, are subject to the administrative supervision of and report to the State Firemen's Pension Commissioner. The affairs of the Firemen's Relief and Retirement Fund are not included in this report. The fund is required by State law to be operated on an actuarily sound basis. Contri- bution rates must be sufficient to pay normal cost and amortize the net actuarial deficiency over a 30 year period. The firemen member's present contribution rate is 9.0% of the average annual monthly salary of all firemen. The City's contributions increased from 10.6% to 12% effective January 1, 1982. The City's contributions were $871,192 for the year ending July 31, 1983. All changes or modifications must be approved by a qualified actuary and, second, by a majority vote of the members of the Fund. The Wyatt Company's April 1, 1983 actuarial valuation of the Fund reported an actuarial deficiency of $8,124,701 which is being amortized over a 30 year period. The Board of Trustees has authority to employ an actuary once in every three years. C. Corpus Christi Retirement Plan Fund This fund was established by Ordinance No. 13168 during fiscal year 1975-76 to provide a limited retirement plan for those employees of the City who were over the age of 54 at the time of their employment and, consequently, not eligible for participation in the Texas Municipal Retirement System Plan. The Fund is administered by the City. Employees contribute 5% of their salaries, and the City contributes at the same rate as contributed to the Texas Municipal Retirement System Plan. Pension benefits are based solely on contributions by employees, the City and investment income. There is no liability to the City for prior service contributions under existing provisions of the Plan. Current service contributions are fully funded. There is no actuarial requirement. The City's contribution for year ending July 31, 1983, was $83,524. 15. Segment Information for Enterprise Funds The City has seven enterprise operations which provide water, gas, sewer, airport, transit, ambulance and golf services. Segment information for the fiscal year ended July 31, 1983 is as follows: SEGMENT INFORMATION FOR ENTERPRISE FUNDS 07/31/83 Wastewater AID WaterCas Disposal Airport Transit Ambulance Golf dnter System §/§2 System Fund Fund Fund Operating Revenues $ 19,584,396 $29,631,745 $ 8,304,845 $2,316,006 $ 1,762,835 $ 318,219 $ 599,108 Operating Expenses, exclusive of depreciation 12,226,588 28,892,497 6,336,213 1,957,574 3,740,784 1,318,484 438,542 Depreciation 1,386,288 475,645 948,471 376,043 313,267 178,427 41,766 Operating Income (loss) $ 5,971,520 $ 263,763 $ 1,020,161 $ (17,611) $(2,291,216) $(1,178,692) $ 118,800 Other Revenues (expenses) 226,499 548,748 532,506 8,787 1,181,266 588 501 5,008 Income (loss) before operating transfers $ 6,198,019 $ 812,351 Operating transfers in (out) (231,354) Net Income (loss) $ 6,198 019 $ 580,997 $ 1,552,667 $ (8,824) (422,829) (487,900) $ 1,129,838 $ (496,724) 5(1,109,950) (590,191) $ 113,792 891 291 539,089 $ (218,059) $ (51,1p2) $ 113,792 Total Assets $167,482,509 $20,353,394 $49,671,183 57,337,043 $ 2,611,653 $ 641,237 $ 711,325 Total Equity $ 73,302,221 $15,861,027 $29,048,539 $7,226,377 $ 2,293,366 $ 566,327 $ 321,063 Working Capital $ 1,912,506 $ 718,739 $ 2,219,898 $ 196,005 $ (222,938) $ (60,600) $ 184,278 Additions (deductions) to fixed assets $ 12,779,027 $ 1,351,676 $ 6,855,037 $ 128,863 $ (183,943) $ 26,428 $ 37,476 Outstanding revenue bonds $ 45,490,000 $ -- $ 155,000 $ $ -- $ -- $ 352,000 r 34 CITY OF CORPUS CHRISTI, TEXAS NOTES TO FINANCIAL STATEMENTS YEAR ENDED JULY 31, 1983 16. Subsequent Events A. On August 13, 1983, the voters of the City of Corpus Christi approved the issuance of $15,000,000 General Obligation bonds for the construction of a new City Hall. As of the date of this report, no bonds have been sold for the project. B. On October 1, 1983, $470,000 Series 1981 Certificates of Obligation were redeemed and retired. One of the few cities in America where the downtown business district overlooks a beautiful bayfront, Corpus Christi's seaside resort environ- ment draws more people every day to live and work here. A city of 245,000 people, Corpus Christi's population increased 13 percent in the 1970's, rising another four percent in the last two years. Projections show a steady growth continuing, and the City will experience another 13 percent increase by 1990, rising to 317,000 by the year 2000. City of Corpus Christi January 27, 1984 Honorable Mayor Jones, Members of the City Council and City Manager City of Corpus Christi Corpus Christi, Texas The Staff of the Finance Department and I are pleased to submit the Comprehensive Annual Financial Report of the City of Corpus Christi, Texas for the year ended July 31, 1983. This report was prepared by the Finance Department. Accordingly, responsibility for both the accuracy of the presented data and the completeness and fairness of the presentation, including all disclosures, rests with the City. We believe the data, as presented, is accurate in all material aspects; that it is presented in a manner designed to fairly set forth the financial position and results of operations of the City as measured by the financial activity of its various funds; and that all disclosures necessary to enable the reader to gain the maximum understanding of the City's financial activity have been included. ACCOUNTING SYSTEMS AND BUDGETARY CONTROL In developing and evaluating the City's accounting system, consideration is given to the adequacy of internal accounting controls. Internal accounting controls are designed to provide reasonable, but not absolute, assurance regarding: (1) the safeguarding of assets against loss from unauthorized use or disposition and, (2) the reliability of financial records for preparing financial statements and maintaining accountability for assets. The concept of reasonable assurance recognizes that the cost of a control should not exceed the benefits likely to be derived and the evaluation of costs and benefits requires estimates and judgments by management. All internal control evaluations occur within the above framework. We believe that the City's internal accounting controls adequately safeguard assets and provide reasonable assurance of proper recording of financial transactions. Budgetary control is maintained at the object code level by the encumbrance of purchase amounts prior to the release of purchase orders to vendors. Open encum- brances are reported as reservations of fund balance at July 31, 1983. THE CITY AND ITS SERVICES All funds included within the financial section of this Comprehensive Annual Financial Report are under the control of, and dependent on, the City and its elected and appointed officials. The City provides the full range of municipal services contemplated by statute or charter. This includes police and fire, sanitation, health and social services, public improvements, planning and zoning, water supply and distribution, airport, libraries, parks and recreation and general administrative services. The City does not provide education or welfare services. 302 South Shoreline - P.O. Box 9277 - Corpus Christi,TX 78469 (512) 884-3011 CITY OF CORPUS CHRISTI ORGANIZATIONAL CHART CORPUS CHRISTI CITIZENS CITY COUNCIL MUNICIPAL COURT CITY MANAGER DEPUTY CITY MANAGER I ASSISTANT CITY MANAGER (Physical Operations) Engineering —I Aviation Transportation Traffic Engineering Transit Street Public Utilities Water Gas Wastewater I ASSISTANT CITY MANAGER (Urban Development) -1 Community Development Planning Park and Recreation Marina Senior Citizens Library I I CITY SECRETARY ASSISTANT CITY MANAGER (Community Operations) Health -I Sanitation I Building Inspection -I Petroleum Inspection -LCaliseum & Convention C. C. Museum Bayfront Park Tenants 1 FIRE (AID) I BUSINESS DEVELOPMENT CETAIJTPA I POLICE (Emergency Management) Data Processing Personnel Budget Maintenance Services Information Services Human Relations i Risk Management and Safety 1 LEGAL 1 FINANCE 8/1/83 I INDEX TO FINANCIAL STATEMENTS EXHIBIT PAGE NUMBER NUMBER ORGANIZATIONAL CHART INTRODUCTORY SECTION Letter of Transmittal and Financial Analysis of Fiscal Year 1982-83 1 -ix FINANCIAL SECTION Auditor's Report 1 Combined Balance Sheet - All Fund Types and Account Groups. . 1-A 2-5 Combined Statement of Revenues, Expenditures and Changes in Fund Balance - All Governmental Fund Types and Expendable Trust Funds 1-B 6-7 Combined Statement of Revenues, Expenditures and Changes in Fund Balances - Budget (GAAP Basis) and Actual - General, Special Revenue and Debt Service Fund Types 1-C 8-9 Combined Statement of Revenues, Expenses and Changes in Retained Earnings - All Proprietary Fund Types 1-D 10 Combined Statement of Changes in Financial Position - All Proprietary Fund Types 1-E 11-12 Notes to Financial Statements 13-34 F-1 Public Services ...The City operates waterworks, wastewater disposal, and gas systems. The City also provides garbage collection and disposal and maintenance of streets and storm drainage areas. Addi- tional information concerning the City's water, wastewater disposal, and gas system appear elsewhere under the captions "Waterworks System", "Wastewater Disposal System", and "Gas System". Community Enrichment...The City's main library and four branches are equipped with over 294,931 volumes. The City owns and maintains approximately 191 parks containing over 1,005 acres. The City also owns extensive recreational facilities including 97 playgrounds, a marina with 536 yacht basin slips, three municipal beaches, two fishing piers, two public golf courses, nine swimming pools, 35 tennis courts, several baseball and softball diamonds and other recreational centers. In addition, the City owns an auditorium, a coliseum and exposition hall, Little Theatre, the Corpus Christi Museum and the Art Museum. A Community -Convention facility has recently been completed. Airport and Transit System...The City owns the Corpus Christi International Airport situated on 2,230 acres. Fifty percent of the gross revenues derived from operation of the airport parking facilities are part of the "Pledged Revenue" supporting the $5,100,000 Tax and Revenue Certificates of Obligation. Additional transit system provides passenger bus service between various areas within the City and out-of- town charter services originating in the City. See captions "International Airport" and "Transit System" for more information. Health...The City maintains preventive health services through health facilities within the community. Although the City has outstanding two issues of General Improvement Bonds issued in part for hospital building purposes, the public hospitals located within the City are now owned and operated by the Nueces County Hospital District. When the Hospital District was created in 1967 and took over operation of the hospital facilities, the District assumed that portion of the debt service on the Bonds previously issued by the City for hospital buildings and all of this indebtedness has been retired. The City does not have the responsibility of maintaining hospitals, a school system, or a higher education system, and does not expend any funds in providing welfare. CERTAIN ASPECTS OF THE CITY'S FINANCIAL PROCEDURES Audit and Financial Reporting The City Charter requires an annual audit to be made of the books of account, records and transactions of the City by a Certified Public Accountant. The fiscal year of the City begins the first day of August of each year and ends with the thirty-first day of July of each year. The Municipal Finance Officers Association of the United States awarded the City its Certificate of Conformance for its annual financial report for 1957. In addition, the City has been awarded the Supplemental Certificate of Conformance for the 1970, 1975, 1978, 1979 and 1980 annual financial reports. Budget Procedures The State laws and the City Charter require the preparation and filing of an annual budget. The City Manager prepares and submits to the City Council for approval the Annual Budget of the estimated income and expenses for the coming year for all departments not later than the second regular meeting in June of every year. The Council must comply with State laws as to notice and hearings on the budget and at the conclusion of the hearings, must meet and remain in session until the budget for the ensuing fiscal year has been adopted. If no budget has been adopted before the first regular meeting of the Council in August of each year, then the budget for the preceding fiscal year shall be deemed the budget for that fiscal year. Significant Accounting Policies The City prepares its financial statements in accordance with the generally accepted accounting principles for local governmental units as prescribed by Statement 1, Governmental Accounting and Financial Reporting Principals, prescribed by the National Council on Governmental Accounting. A summary of significant accounting policies of the City are set out in the Notes to Financial Statement in the Financial Statements for the year ended July 31, 1983 located elsewhere in the Financial Section of the Official Statement. 17 BUDGET SUMMARY 1983-84 Beginning Revenuer Operaing Capital Unappropriated Total Expenditure, Im <me t Rnme Balance Excluding Inter- Available And AnSPrincipal Appro- Balance (8-1-83) Inter -Fund Fund Resources Transfers Retirement pnation (7-31-84) General $ 3,412,564 $ 57,810,660 $ 7,276,063 $ 68,499,287 $ 66,442,531 $ 201,328 $ 755,428 $ 1,100,000 AID Ambulance (68,327) 975,060 587,590 1,494,323 1,477,196 17,127 Marina... 5,709 517,924 523,633 430,898 82,635 10,100 Parking 233,475 283,000 516,475 503,979 12,496 Data Processing 127,652 29,200 1,952,191 2,109,043 2,085,837 16,505 6,701 Golf Center 146,446 655,800 802,246 575,010 202,236 25,000 Insurance 136,044 4,800 1,324,150 1,464,994 1,307,950 97,044 60,000 Group Life&Health 270,100 25,000 3,750,000 4,045,100 3,457,400 587,700 Workers Compensation 353,000 32,700 1,202,100 1,587,800 507,900 79,900 1,000,000 Self -Insurance 2,555,349 175,000 794,350 3,524,699 768,800 600,000 2,155,899 Airport 211,058 2,518,310 2,729,368 2,388,120 241,248 100,000 Airport Tower 32,307 87,900 120,207 87,900 32,307 Transit (19,786) 2,855,050 1,025,235 3,860,499 3,762,793 57,706 40,000 Tourist and Convention 156,046 2,965,000 3,121,046 3,071,046 50,000 Water 2,377,679 19,553,950 208,000 22,139,629 20,037,770 601,859 1,500,000 Gas. 1,210,786 30,374,010 408,900 31,993,696 29,153,659 1,093,218 46,819 1,700,000 Wastewater Services .. 1,763,498 8,245,327 38,850 10,047,675 8,967,706 679,969 400,000 Revenue Sharing. 337,990 3,700,000 4,037,990 1,233,000 2,804,990 w Debt Service General Obligation 11,979,559 11,828,326 1,306,484 25,114,369 6,518,021 6,445,000 12,151,348 First Lien Water Revenue 1,293,163 133,600 3,266,904 4,693,667 2,795,565 225,000 1,673,102 Junior Lien Water Revenue.... 1,465,896 178,800 1,204,368 2,849,064 348,063 1,035,000 1,466,001 Wastewater Revenue .. 206,338 7,800 214,138 2,761 211,377 Revolving Funds Maintenance Services 367,251 155,960 4,737,500 5,260,711 5,031,667 9,044 220,000 Stores 739,476 20,300 3,199,200 3,958,976 3,256,718 48,543 653,715 Total $ 29,293,273 $143,133,477 $32,281,885 $204,708,635 $164,212,290 $12,015,913 $4,186,259 $ 24,294,173 Less Balances Shown Twice ..... 807,230 807,230 Net Balance $ 28,486,043 $ 23,486,943 Revenue Excluding Inter -Fund $143,133,477 Change in Fund Balance 4,999,100 Total Appropriation $148,132,577 Operating Expenditures $164,212,290 Construction and Principal Retirement. 12,015,913 Reserve Appropriation 4,186,259 Less Inter -Fund Revenues (32,281,885) Total Appropriation $148,132,577 REVENUES Major Source of Revenues The City's General Fund revenue sources include property taxes, a sales tax, franchise taxes, Federal revenue sharing funds, contributions from City -owned utilities, fines and penalties, license and permits, various service charges, and miscellaneous sources. The following table reflects selected information of the City's general governmental revenues. Comparison of Selected General Revenues by Source(1) L,,,,,,s Charges General Fiscal Property Sales Hotel Business Other And Muninpal For M,,cellaneous Revenue Year Tases(3) Tss Tas Tries Taxes Permits Court Fines Services Revenues Sharing Total 1973-76 516,063,783 1 6,002,747 5 319,693 91,408,058 31,6411,483 5 398,603 5 938,762 13,421,454 13,026,339 19,595,755 336,855,677 1976-77 16,945,435 6,852,194 367,888 1,572,494 1,251,048 427,553 925,524 3,429,071 3,372,722 2,890,665 38,034,594 1977-78 28,205,256 7,919,152 472,656 1,787,894 1,491,285 5110,992 974,829 3,717,003 3,927,981 4,353,302(2) 43,430,350 1974-79 18,544,300 9,219,007 685,359 1,959,364 1,527,221 731,665 1,153,504 5,583,023 5,859,240 3,804,220(2) 49,067,011 1979-80 20,164,603 10,671,986 800,401 2,649,572 1,620,642 738,111 1,462,125 6,555,753 5,549,265 3,561,300 53,776,758 1980-81 21,297,800 13,224,490 977,374 4,920,156 1,784,607 914,306 1,359,913 7,852 582 7,926,801 3,416,543 63,624,652 1981-82 23,704,889 15,518,707 1,313,032 5,762,598 1,984,088 1,060,924 1,477,714 8,925,055 8,164,609 3,514,315 71,425,931 26,419,368 15,025,082 1,416,592 6,810,003 2,344,096 1,134,261 1,637,700 9,775,519 5,380,991 3,712,047 73,655,654 (1) These selected res enues are not all inclusive, but includes major revenuer from General Fund, Spectal Revenue Fund and Debt Sen,,, Fund (2) Includes Ann Recession Funds of 5677,819 in 1977-78 and 3203,964 In 1978-79. (3) Includes Octet Service Fund, ,merest and penalty and Industnal District payments in lieu ult.,. Ad Valorem Tax Subject to certain exemptions, the property tax is imposed on real and personal property situated in the City. Property Tax Code and County -Wide Appraisal District The Texas Property Tax Code (the "Code") creates a county wide appraisal district in each county within the State of Texas. The appraisal district created in Nueces County (the "Nueces County Appraisal District") is responsible for the appraisal of all taxable property and the equalization of appraised values of property of all taxing units in the Appraisal District, including the City. Under certain circumstances, taxpayers and taxing units including the City, may appeal orders of the Appraisal Review Board by filing a notice of appeal with that Board and a petition for review in district court. In such event, the property value in question may be determined by the courts or by a jury, if requested by any party. Additionally, taxing units may bring suit against the Appraisal District to compel compliance with the Code. The Code establishes procedures for providing notice and the opportunity for a hearing for taxpayers in the event of certain proposed tax increases and provides for taxpayer referenda which could result in the repeal of certain tax increases. The Code also establishes a procedure for notice to property owners of reappraisals reflecting increased property value, appraisals which are higher than renditions, and appraisals of property not previously on an appraisal roll. When property is reappraised in any year from 1982 through 1985, the City Council, at its option, may under limited circumstances, impose a temporary ceiling on an increase in the property value. On November 3, 1981, voters of the State of Texas approved a state constitutional amendment concerning the homestead property tax exemptions. Such amendment permits local governments the option of granting homestead exemptions of up to 40% of market value for the 1982-1984 tax years, up to 30% of market value for the 1985-1987 tax years and up to 20% of market value thereafter. City Council has acted to grant exemptions in 1982 and 1983 of 10% of market value or $5,000, whichever is greater. Other Events On July 5, 1983, the United States Supreme Court issued its opinion in the American Bank & Trust v. Dallas County, Texas case, holding that the "book value" method of valuing bank shares violated federal law to the extent that it included the value of federal obligations held by a bank as part of its assets. The Court had also been asked to rule on whether the Texas bank shares tax was itself unlawful. The Court chose not to hear arguments on that question; in effect, holding the tax statute was valid. Since the Court's 19 decision invalidated only the appraisal method and not the state law, it is the State Property Board's position that chief appraisers must continue to follow the statutory requirement to place bank shares on the 1983 appraisal roll. These values will appear on the 1983 Supplemental Appraisal Roll upon certification and it is estimated these values will be over $124 million. Assessed Valuations The following table sets forth a comparison of the total net taxable property as of January 1 of each year: Real Property Personal Property Total Basis Net Net Net of Taxable Taxable Taxable Percent - Tax Assess- Assessed Estimated Assessed Estimated Assessed Estimated age of Year ment Value(1) Market Value Value(1) Market Value Value(1) Market Value Increase 1976 60% $ 928,420,179 $1,547,366,965 $171,239,750 $285,399,583 51,099,659,929 $1,832,766,548 4 1% 1977 . 60% 1,075,776,722 1,792,961,203 190,952,877 318,254,795 1,266,729,599 2,111,215,998 15.2% 1978100% 1,989,396,842 1,989,396,842 357,417,300 357,417,300 2,346,814,122 2,346,814,122 11.256 1979 100% 2,315,555,613 2,315,555,613 416,058,475 416,058,475 2,731,614,088 2,731,614,088 16 4% 1980. 100% 2,706,249,446 2,706,249,446 508,726,286 508,726,286 3,214,975,732 3,214,975,732 17.7% 1981 10096 3,117,840,838 3,117,840,838 589,958,166 589,958,166 3,707,799,004 3,707,799,004 15.3% 1982 10096 3,776,986,253 3,776,986,253 893,693,478 893,693,478 4,670,679,831 4,670,679,831 26.096 1983. 100% 4,577,358,064 4,577,358,064 576,237,915 576,237,915 5,063,247,162 5,063,247,162 8.4% (1) Amounts shown are net taxable assessed values after deductions of residential homestead exemptions granted to persons 65 years of age and older, disabled taxpayers, disabled veterans, and residential homestead exemptions - local option. Mobile homes, whsle classified as personal property may be residential homesteads. See the following on exemptions granted Residential Homestead Exemptions - Over 65 Pursuant to provisions of the Texas Constitution, the City may exempt an amount from the assessed valuation on the homesteads of persons 65 years of age or older. The following table reflects the amounts the City granted for each tax year and the amount such exemptions reduced the taxable assessed valuations. Assessed Tax Value Number of Value of Average Year Exempt Exemptions Exemptions Value 1976 $ 4,000 6,326 $ 23,977,173 $ 3,790 1977 6,000 6,517 35,455,550 5,440 1978 13,500 6,704 78,309,921 11,681 1979 18,000 7,412 109,845,717 14,820 1980 18,000 7,765 119,382,205 15,374 1981 18,000 8,093 128,685,845 15,901 1982 18,000 9,466 137,679,560 14,545 1983 18,000 9,848 150,674,388 15,300 Disabled Taxpayers Exemptions Assessed Tax Value Number of Value of Average Year Exempt Exemptions Exemptions Value 1980 $10,000 850 $ 8,279,453 $ 9,471 1981 10,000 945 9,251,586 9,790 1982 10,000 1,068 9,921,874 9,290 1983 10,000 1,118 10,612,248 9,492 20 Disabled Veterans Exemptions For the tax year 1976 under provisions of the Texas Constitution, the City must grant a minimum exemption of $1,500 and a maximum exemption of $3,000 of assessed value of residential homesteads of disabled veterans who file for the exemption based on a formula of the percent of disability claimed. Tax Number of Value of Average Year Exemptions Exemptions Value 1976 1,099 $2,184,241 $1,987 1977 1,217 2,348,918 1,930 1978 1,442 2,778,752 1,927 1979 1,271 2,537,553 1,997 1980 1,334 2,671,611 2,003 1981 1,381 2,808,400 2,034 1982 1,794 3,577,337 1,994 1983 1,370 2,825,239 2,062 Residential Homestead Exemptions — Local Option For the tax year 1982, under provisions of a Constitutional Amendment, the City has the option of granting homestead exemptions of up to 40% of market value for the 1982 through 1984 tax years, up to 30% of market value for the 1985 through 1987 tax years, and up to 20% of market value thereafter. Mini- mum exemption is $5,000. For the tax years 1982 and 1983, the City has granted 10% of market value or $5,000, whichever is greater. Tax Number of Value of Average Year Exemptions Exemptions Value 1982 39,517 $238,019,392 $6,023 1983 40,456 249,341,098 6,163 THE TAX INCREMENT FINANCING ACT OF 1981 On November 3, 1981, the voters of the State of Texas approved a Constitutional amendment enabling the creation of Reinvestment Zones (the "Zone(s)") within a city to encourage the revitalization and rede- velopment of underdeveloped areas of a city with the option of issuing tax increment bonds for that purpose. Assessed values in a Zone at the time of its creation constitute the base value as to all governmen- tal entities exercising taxing authority within the Zone. Tax receipts from all taxing jurisdictions due to increased values over the base value are placed in a trust fund to pay for public improvements to revitalize the Zone or retire tax increment bonds. On December 29, 1982, the City Council of the City of Corpus Christi designated a portion of the City as a Zone pursuant to the Act. This area officially designated as Corpus Christi Reinvestment Zone No. 1, generally includes the bayfront area in and along the central business district south to approximately Ayers Street. This area has recently been the subject of an intensive study by the City Staff, leading to the preparation of the "Bayfront Plan". After a staged review and adoption process by the Corpus Christi Planning Commission and City Council, the Bayfront Plan was officially adopted on December 29, 1982. The Texas Tax Increment Financing Act provides that the City and each other taxing unit may share in the tax increment allocation so long as the sharing basis is established by contract prior to the designation of the area as a Zone. The City, acting on behalf of the Zone, entered into contracts with the City of Corpus Christi, the Corpus Christi Junior College District, Nueces County, Nueces County Hospital District, and the Corpus Christi Independent School District prior to passage of the reinvestment zone ordinance on December 29, 1982. These contracts established the basis for the participation of each taxing unit in the tax increment allocation. The Zone was divided into subzones A and B with a tax increment sharing plan established for each subzone. In subzone A, the Zone receives only the value of new construction (any construction which increases values by at least twenty-five percent) from the tax rates of the City and County, excluding the Hospital District, the Junior College District, and the School District. Subzone B is divided into B1 and B2. In Subzone B1, the Zone receives only the value of new construction on unimproved properties from all participating governmental entities. In Subzone B2, the Zone receives appreciation on improved 21 properties (those properties for which improvements were in place as of January 1, 1982) and all increases due to new construction from all participating governmental entities. All participating governmental entities receive taxes on the base values (Assessed Values as of January 1, 1982), appreciation on unimproved properties and the appreciation on new construction. As the result of the latter feature, all taxing entities will benefit from new construction in the Zone. Below are the final 1983 net assessed values and tax levies for the Reinvestment Zone No. 1: Zone A Zone B1 Zone B2 Total NET ASSESSED VALUES — 100% MARKET SCHOOL $120,907,522 $14,414,562 $48,195,315 $183,517,399 COLLEGE 120,957,052 14,404,062 48,389,815 183,750,929 CITY 120,863,045 14,420,062 48,144,775 183,427,882(1) COUNTY 120,321,090 14,290,462 47,149,803 181,861,355 HOSPITAL 120,321,090 14,390,462 47,149,803 181,861,355 TOTAL LEVIES SCHOOL $ 985,611 $ 117,613 $ 390,993 $ 1,494,217 COLLEGE 110,990 13,217 44,403 168,610 CITY 686,502 81,906 273,462 1,041,870(2) COUNTY 297,578 35,591 116,611 449,780 HOSPITAL... 189,963 22,720 74,441 287,124 TOTAL $ 2,270,644 $ 271,047 $ 899,910 $ 3,441,601(3) (1) The City 1983 values in the three zones increased $14,863,472 over the 1982 values of $168,564,410. (2) Through the first four months of the 1983 tax year the City has collected $954,379.54 of its tax levy in the Zone, of which only $49,881.98 goes to the Zone, with the balance of $904,497.56 retained by the City. From this total levy in the first four months of the 1983 tax year the Zone received $118,805 in tax increment revenues. These funds can be expended for public improvements within the Zone and encourage redevelopment of the area. (3) Tax Rates The maximum tax rate permitted by the Constitution of the State of Texas is $2.50 per $100 of assessed valuation. Prior to 1970, the City Charter limited the tax rate for Interest & Sinking purposes to $1.25. The City's Charter was amended in 1970 to eliminate the limitation within the $2.50 rate for Interest & Sinking purposes, however, the City Council was restricted by Charter in calling an election for tax supported Bonds unless the interest and principal requirements of existing and proposed debt could be met from the estimated proceeds of a tax rate not to exceed $1.25 per $100 of assessed valuation. The City Charter was again amended on April 5, 1980, and there is now a $0.68 per $100 of assessed valuation maximum tax rate for all purposes including debt service. The ad valorem tax rate is levied each year by the City Council through the adoption of a tax ordinance. If the City Council fails or neglects to pass a tax ordinance for any year, the tax ordinance last passed shall be considered in force and effect as the tax ordinance for the year which the City Council so failed to pass a tax ordinance, and the failure to pass such ordinance in any year shall in nowise invalidate 22 the collection of the tax for that year. The following table indicates the tax rate distribution for the past eight tax years and current tax year. Tax Rate Distribution Tax General Interest & Year(1) Fund Sinking Fund Total 1976 $0.925 $0.615 $1.54 1977 0.8619 0.5781 1.44 1978 0.479 0.321 0.80 1979 0.444 0.296 0.74 1980 0.42 0.26 0.68 1981 0.38 0.24 0.62 1982 0.3467 0.2213 0.568 1983 0.3467 0.2213 0.568 (1) For the tax years 1976 and 1977, the basis of assessed valuation to estimated market value was 60%. For 1978 and thereafter 100%. Levy and Collection of Taxes The City is responsible for the collection of its taxes, unless it elects to assign such functions to another governmental entity. In July of each year, the rate of taxation is set by the City Council based upon the valuation of property within the City as of January 1. Ad valorem taxes are due on receipt of a tax bill and payable from October 1 of the year in which levied until January 31 of the following year without interest or penalty. Split payments are not allowed. On February 1, the unpaid taxes have a penalty and interest charge of seven percent (7%). Taxes delinquent from March 1 through June 30 have an additional penalty and interest charge of two percent (2%) per month, for a total penalty and interest charge of fifteen percent(15%). Taxes delinquent on July 1 have a total penalty and interest charge of eighteen percent (18%). Unpaid taxes after July 31 accrue an additional interest charge of one percent (1%) per month until paid. The Code makes provision for discounts for early payment and the postponement of the delinquency date under certain circumstances. The City grants a discount for early payment. The discounts are 3% in October, 2% in November and 1% in December. The following Table I sets forth a comparison of the taxable assessed valuation, tax rate levy and percentage of taxes collected for the past eight fiscal years. Table II sets forth a comparison of the tax levies and also indicates the amount of uncollected delinquent taxes. Table I Taxable Net % Tax Collections Tax Assessed Tax Tax Year Year Valuation Rate Levy % Current % Total Ending 1976 $1,099,659,929 $1.54 $16,934,770 97.0% 100.1% 7-31-77 1977 1,266,729,599 1.44 18,240,905 97.2% 99.8% 7-31-78 1978 2,346,814,122 0.80 18,706,416 96.9% 99.1% 7-31-79 1979 2,731,614,088 0.74 20,195,178 96.9% 99.2% 7-31-80 1980 3,214,975,732 0.68 21,311,884(1) 96.8% 99.2% 7-31-81 1981 3,707,799,004 0.62 22,568,929(1) 95.5%(2) 98.0%(2) 7-31-82 1982 4,670,679,831 0.568 25,341,492(1) 94.5%(2) 96.7%(2) 7-31-83 1983 5,063,247,162 0.568 28,759,245(1) In Process of 7-31-84 Collection (1) Beginning with the 1980 tax levy, the City allows discounts for early payment of taxes. The discounts allowed for 1980 amounted to $454,303, 1981 $419,345, and $506,558 in 1982. (2) Current and Total Tax Collections for 1981 and 1982 tax years declined due to Banks failure to pay taxes because of a United States Supreme Court decision. See "Revenues - Other Events" for additional information. 23 Table II Outstanding Delinquent Delinquent Outstanding Taxes as Fiscal Tax Net Current Current Tax Tax Total Tax Delinquent Percent of Year Year Tax Levy Collections Collections Collections Taxes Current Levy Ending 1976 $16,934,770 $16,423,263 $522,172 $16,945,435 $1,709,201 10.1% 7-31-77 1977 18,240,905 17,734,380 470,878 18,205,258 1,738,659 9.5% 7-31-78 1978 18,706,416 18,134,312 409,988 18,544,300 1,879,889 10.0% 7-31-79 1979 20,195,178 19,569,605 458,725 20,028,330 2,013,297 10.0% 7-31-80 1980 21,311,884 20,625,731 518,242 21,143,973 2,073,522 9.7% 7-31-81 1981(1) 22,568,929 21,548,324 575,789 22,124,113 2,420,990 10.7% 7-31-82 1982(1) 25,341,492 23,936,349 579,390 24,515,739 3,052,335 12.0% 7-31-83 1983(2) 28,759,245 In process of collection 7-31-84 (1) Current and Total Tax Collections for 1981 and 1982 tax years declined due to Banks failure to pay taxes because of a United States Supreme Court decision. This resulted in higher outstanding delin- quent taxes. See "Revenues — Other Events" for additional information. (2) No levy was made on Banks personal property. Principal Ad Valorem Taxpayers The following table lists the taxpayers with the twenty largest assessed valuations: Name of Taxpayer Central Power & Light Co. Southwestern Bell Telephone Company Exxon Corporation & Pipeline Southwestern Refining Company, Inc. H. E. Butt Company First City Bank of Corpus Christi Tom Martine Properties Celanese Chemical Company, Inc Atlantic Richfield Willard H. Hammonds Corpus Christi National Bank Callaway Properties LaQuinta Motor Lodge Arruth Associates, Inc. Padre -Staples Mall McNeil Real Estate Fund XII Sunrise Mall Gulf Compress Jasfor Realty Corporation Sears Roebuck & Co. Nature of Property Electric Utility Telephone Oil Company Chemical Company Retail Stores Bank Commercial Property Chemical Company Oil Company Commercial Property Bank Commercial Property Commercial Property Commercial Property Commercial Property Commercial Property Commercial Property Cotton Compress Commercial Property Retail Stores 1983 Assessed Value 100% of Market Value $178,488,844 119,880,696 46,966,989 33,369,420 31,457,195 25,279,926(1) 23,155,473 19,224,000 15,803,638 15,616,878 13,006,813(1) 12,297,375 12,293,539 12,245,358 12,074,892 11,520,909 11,204,102 11,093,327 9,837,697 9,372,729 $624,999,800 Percentage of total to 1983 assessed valuation 14.48% (1) Includes only real property values. The Nueces County Appraisal District has recently completed appraisal of the personal property of the Banks for the 1983 tax year and upon certification by the Appraisal Review Board and the City Council will be submitted on the 1983 supplemental tax rolls. Industrial Districts During 1980 the City of Corpus Christi designated two areas of land within its extraterritorialjurisdic- tion as industrial district areas for the purpose of collecting an in lieu of tax payment from industries located thereon in return for continuation of their extraterritorial status. 24 Both areas combined comprise approximately 14,020 acres. The improvements located thereon are primarily commercial or industrial in nature. The area designated as Industrial District Number One is located on the City's northeast side contiguous to Nueces Bay and the harbor area. Industrial District Number Two is located on the City's northwest side and is bound primarily by the east City limit line, F.M. Road 1694 and State Highway 44. The City's authority to designate industrial districts is provided under the Municipal Annexation Act as described under Article 970a of the Revised Civil Statutes of Texas. Subsequent to designation of the above mentioned areas, all owners or lessees of property used for industrial purposes in either area were provided an opportunity to execute one of two industrial district agreements approved by the City. The first agreement, effective January 1, 1981, provides an industry immunity from annexation for seven years and allows extension of the agreement beyond that period if an industry so desires. The agreement also provides for an annual in lieu of tax payment based on the market value of property within each company's designated industrial district. The basic method of calculating the in lieu of tax payment applies the existing City tax rate to 100 percent of the market value of land comprising the company's industrial district and to 50 percent of the market value of improvements located on such land. New improvements completed since January, 1974, are considered at a reduced percentage of market value (i.e., 5 percent per year up to 50 percent). An additional 15 percent of market value of an industry's improvement property is considered in calculating the in lieu of tax payment if an industry is not a member of the Refinery Terminal Fire Company and depends on the City Fire Department for fire protection. At the request of a company, an alternative to the method of calculation described above may be used. This method considers, in addition to property included in the company's industrial district, all company property located inside -City -limits at 100 percent for land and 50 percent or less for improvements, if such property is either contiguous to or forms an integral part of the company's primary operation located in the company's industrial district. The amount of property taxes ordinarily due to the City on the inside -City - limit property is then deducted from this amount to derive the final in lieu of tax payment due. Should this calculation, however, result in an amount less than that required for a minimum payment then the company would make the minimum payment. Under the minimum payment provision of the contract, any industry which has less than two million dollars of improvements on land located within the industrial district would be required to make an in lieu of tax payment based on 100 percent of the market value ofland and 100 percent of ad valorem taxes due on one million dollars of improvements regardless if one million dollars of improvements exists on the land or not. Each company's in lieu of tax payment to the City is due no later than December 31 of each year over the life of the agreement. The second agreement approved by the City and made available to all companies within either industrial district area includes all provisions described above except the following: 1) reduced percentage of market value of improvements completed after January 1, 1974; 2) alternate method of calculation; and 3) minimum payment provision. Each industry was given an opportunity to execute either of the two agree- ments. As of February 16, 1984, 23 companies had executed the first agreement and 36 executed the second. On January 11, 1984 the City Council authorized extension of all contracts to any interested company to December 1990. The total market value of land and improvements comprising all the existing industrial districts approximated $1,218,000 in 1983. This resulted in total payments by companies of $1,841,000 of 1983 indus- trial district billings. The City received $1,586,000 of industrial district payments in 1982 and $1,361,000 in 1981. All in lieu of tax payments are currently credited as revenue to the City's General Fund. Hotel Occupancy Tax A 2% hotel -motel occupancy tax was first levied in August, 1968. On September 1, 1972, the tax was increased to 3% and to 4% on April 1, 1978. Tax collections amounted to $1,416,591 in 1982/83 fiscal year. Federal Revenue Sharing The Federal Revenue Sharing Program began in December 1972 and as ofJuly 31, 1983, $41,086,842 had been received, and with the $671,077 accumulated interest $5,750 from sale of property and recovery of prior years expenditures of $21,213 provided total funds of $41,784,882. 25 Sales and Use Tax The City imposes a 1% sales and use tax which is now the General Fund's largest source of income. Revenues from the sales tax for the past 8 fiscal years have been as follows: % Of General Equivalent of Sales Tax Fiscal Total % of Ad Valorem Fund Tax Ad Valorem Per Capita Year Collected Tax Levy Collections Tax Rate(1) Last Census 1976 $ 6,002,747 36.9% 61.3% 0.34% $29.35 1977 6,852,194 40.5% 69.5% 0.37% 33.50 1978 7,919,152 43.4% 74.6% 0.38% 38.72 1979 9,219,007 49.3% 84.9% 0.39% 45.08 1980 10,671,986 52.8% 90.9% 0.39% 52.18 1981 13,224,490 60.5% 103.8% 0.41% 57.32 1982 15,518,707 67.5% 106.5% 0.42% 66.85 1983 15,025,082 56.6% 92.8% 0.32% 64.73 (1) City changed basis of assessment to 100% of market value in 1978. Equivalent tax rate for prior years adjusted to 100% of market value for comparative purposes. Comparison of General Expenditures For Selected Functions Sanitation Health Fiscal General Pablic(1) and Waste and Community Debt Yur Government Safety 5treets Removal Environment Libraries Enrichment (2) Service Total 1973-74 33,180,949 $ 8,649,684 $2,290,887 $1,986,630 $ 893,447 $ 500,538 $2,517,546 $ 6,175,390 $26,195,071 1974-75 3,608,412 9,734,341 2,830,841 2,221,714 1,105,476 594,872 3,235,931 6,517,215 29,848,802 1975-76... 4,312,909 11,258,465 3,014,864 2,418,021 1,107,234 677,640 3,590,211 7,422,800 33,802,144 1976-77... . 4,630,849 12,350,044 3,173,298 2,654,618 1,163,368 710,431 3,952,061 7,612,392 36,247,061 1977-78... . . 5,080,227 13,815,225 3,499,144 2,795,786 1,248,838 804,069 4,479,975 8,322,210 40,045,474 1978-79... . 6,021,957 15,486,289 3,680,824 3,449,590 1,500,294 795,071 5,045,565 9,159,196 45,138,786 1979-80... . . 6,358,055 17,430,555 4,216,298 3,605,221 1,564,407 910,777 5,307,062 9,536,535 48,928,910 1980-81. . . . 7,946,020 20,490,389 4,704,705 4,419,050 1,829,671 1,099,246 5,968,468 10,247,672 56,705,221 1981-82. 8,708,645 23,154,736 5,455,322 4,778,174 2,055,849 1,258,074 8,804,780 11,341,908 65,557,488 1982-83... . 9,752,464 26,191,097 6,186,332 4,788,679 2,263,579 1,498,458 8,240,412 11,407,083 70,328,104 (1) Public Safety includes expenditures for Pobce, Fire, Civd Defense, Traffic Engineering and Building Inspections. (2) Community Ennchment includes expenditures for cultural and convention facilities, parks, recreation, marina, bayfront Science Park, Corpus Christi Museum, and Art Museum maintenance. Note: The data in this table is abstracted from the financial statements of General, Special Revenue and Debt Service Funds and presented for historical comparative purposes and is not to be considered all inclusive. Retirement Plans Liabilities of Retirement Plans Texas Municipal Retirement System... All permanent employees of the City, other than firemen and employees who were over 54 years of age at the time of their employment, are covered by a state-wide retirement plan administered by the Board of Trustees of the Texas Municipal Retirement System. The City's contribution is calculated annually by actuaries of the System using the unit credit method which for the calendar year 1983 is 7.9%. Total contributions for the fiscal year ending July 31, 1983 were $3,535,207. At December 31, 1982, the unfunded liability for prior service benefits was $27,574,942 which, beginning January 1, 1982, are being amortized over 25 years. Effective January 1, 1982, the City adopted updated service credits and increased retirement annuities which is the first revision in these benefits since January 1, 1976. Firemen's Relief and Retirement Fund... The Firemen's Relief and Retirement Fund is established and controlled through State Legislative Enactments. The retirement fund is administered locally by a seven member board, independent of the City Council. City management does not influence or control the Firemen's Relief and Retirement Fund, and the assets of the Fund are not the property of the City. The seven member Board of Trustees, composed of the Mayor and Director of Finance as ex -officio trustees, three firemen elected by majority vote of firemen and two citizens who must be appointed unanimously by the first five trustees, are subject to the administrative supervision of and report to the State Firemen's Pension Commissioner. The affairs of the Firemen's Relief and Retirement Fund are not included in this 26 report. The Fund is required by State law to be operated on an actuarily sound basis. Contribution rates must be sufficient to pay normal cost and amortize the net actuarial deficiency over a 30 year period. The firemen member's present contribution rate is 9.0% of the average annual monthly salary of all firemen. The City's contributions increased from 10.6% to 12% effective January 1, 1982. The City's contributions were $871,192 for the year ending July 31, 1983. All changes or modifications of benefits must be approved first by a qualified actuary and, second, by a majority vote of the members of the Fund. The Wyatt Company's April 1, 1983 actuarial valuation of the Fund reported an actuarial deficiency of $8,124,701, which is being amortized over a 30 year period. The Board of Trustees has authority to employ an actuary once in every three years. Corpus Christi Retirement Plan Fund ...This fund was established by Ordinance No. 13168 during fiscal year 1975-76 to provide a limited retirement plan for those employees of the City who were over the age of 54 at the time of their employment and, consequently, not eligible for participating in the Texas Municipal Retirement System Plan. The Fund is administered by the City. Employees contribute 5% of their salaries, and the City contributes at the same rate as contributed to the Texas Municipal Retirement System Plan. Pension benefits are based solely on contributions by employees, the City and investment income. There is no liability to the City for prior service contributions under existing provisions of the Plan. Current service contributions are fully funded. There is no actuarial requirement. The City's contri- bution for year ending July 31, 1983 was $83,524 Payroll Statistics Texas Firemen's Corpus Christi Total Paid Number of Fiscal Social Municipal Relief and Retirement by City as Employ ces Last Year Salaries Security Ret. System Retirement Plan Employer Payday of Year 1976-77 $28,950,266 $1,381,748 $1,605,029 $407,908 $49,298 $32,394,249 3,125 1977-78 33,151,694 1,630,309 1,857,755 453,503 63,339 37,156,600 3,585 1978-79 35,421,872 1,766,564 2,054,312 482,435 74,401 39,799,584 3,322 1979-80 38,198,826 1,930,865 2,269,569 539,057 75,063 43,013,380 3,133 1980-81 45,169,010 2,359,243 2,887,766 635,616 88,099 51,139,734 3,146 1981-82 48,167,682 2,606,315 3,274,522 751,322 98,211 54,898,052 3,138 1982-83 54,127,521 2,987,130 3,535,130 871,194 93,592 61,614,567 3,136 ANNEXATION PROGRAM Background The City has continued to expand its jurisdiction, and thus increase its tax base, by annexing selected adjacent areas. The City may annex additional territory adjoining or lying adjacent to the City in any of three manners: (1) by an election with approval of qualified voters; (2) by contract with the owners of the land and (3) by ordinance of any roads, highways, streets, alleys, sidewalks, parks or use dedicated for any other public purpose. As of July 31, 1983, the total area of the City is approximately 392 square miles of which approximately 117 square miles is land area and 275 square miles water area. The areas covered by water require no normal City services, but do produce considerable revenues from oil and gas properties located therein and allow the City to enforce ordinances regarding uses in the areas. The City has had numerous annexations since its beginning. Significant annexations occurred in 1950 when 96 square miles of water area in Corpus Christi and Nueces Bay were annexed, in 1962 when 45 square miles of land west and south of the City were annexed, in 1966 when 38 square miles of water area in Corpus Christi Bay were annexed and in 1970 when 66 square miles of water area in Corpus Christi Bay and Laguna Madre were annexed. However, four oil companies who owned leases in the 1970 annexation of bay water areas contended the annexation was not legal. The matter ended up in court and was settled in favor of the City. In December, 1972 an election to re -affirm the annexation of November 1970 was held and carried. The last significant annexation was in the November 3, 1981 election. The City of Corpus Christi annexed approximately 3,000 acres of land and water in addition to fringe area development made up of commer- cial, industrial and residential subdivisions. The City has annexed the developed areas of Padre Island bounded by Laguna Madre, Packery Channel the Gulf of Mexico and the Southern boundary of Nueces County. Padre Island is a nationally (if not worldwide) known resort area offering tourists many miles of sunny beaches for fun and relaxation. As Padre Island continues to develop it will have a positive impact on tourism and continue to be a boost to the City's tax base in the years to come. 27 WATERWORKS SYSTEM Existing Source of Water Corpus Christi obtains its water from the Nueces River with a water -shed of some 16,000 square miles with an average flow of 612,900 acre feet. A portion of the flood waters is impounded in Lake Corpus Christi by Wesley Seale Dam, owned by the Lower Nueces River Water Supply District. The reservoir has a capacity of 272,000 acre feet, a maximum water surface of 94 feet above sea level, and an estimated annual yield of 126,000 acre feet under drought conditions. The current use is approximately 100,000 acre feet. The water flows down some 35 miles of natural river channel of the Nueces River to two treatment plants at Calallen which have a combined rated capacity of 80,000,000 gallons per day with a 50% overload factor. The finished water is pumped to customers through five mains which have a capacity of 130,000,000 gallons per day. The City sold $25,000,000 First Lien Waterworks Revenue Bonds, Series 1981, in July, 1981, for treatment plant expansion and main replacements. The Water System Capital Improvement Program calls for an additional $25,000,000 Revenue Bonds to be sold 1985-1989 to accommodate future growth of the System. A water supply contract, dated August 10, 1955, with the Lower Nueces River Water Supply District, provides that the City has sole right to all water available from the District's reservoir. A minimum monthly payment of $40,000 for water purchases is agreed upon, and an additional declining scale of prices ranging from 3.25 cents to 1.50 cents per 1,000 gallons for annual water purchases in excess of the minimum of fourteen billion gallons. The City also agrees to operate and maintain the District's dam at its own expense during the term of the contract, which is 30 years. It further agrees to negotiate an additional contract upon expiration of the 30 -year primary -term should the District remain obligated on Bonds sold to finance construction of the dam. The agreement further provides that, at the time all Bonds of the District have been paid off, whether prior to the expiration of the primary -term or during the period covered by a contract executed after expiration of the primary -term, the City shall have the option of taking title to the reservoir properties from the District under such procedure and for such minimum payment as may be required by law. As ofJuly 31, 1983, the District had outstanding Bonds payable totaling $2,780,000 which mature serially through 1986. Future Source of Water To meet the need for a future raw water supply, the City and Nueces River Authority have entered into a contract for joint sponsorship of Choke Canyon Project, a 700,000 acre foot reservoir constructed on the Frio River near Three Rivers, Texas, upstream from the existing Wesley Seale Dam. The project was completed in June, 1982 by the U. S. Bureau of Reclamation at a January 1, 1981 estimated cost of $114,000,000 of which approximately 75% will be the local sponsor's share. The Bureau of Reclamation is in the process of calculating a current estimate of cost which will reflect increased costs due to inflation. To partially finance initial costs of approximately $19,000,000 the City has sold to the Texas Water Development $15,000,000 of Junior Lien Water Revenue Bonds. The first installment of $7,895,000 was issued in October, 1975, and the proceeds were used to advance refund all $7,105,000 of the City's outstanding First Lien Water Revenue Bonds. The second installment of $7,105,000 was issued in January, 1977, and the proceeds were paid to the Bureau of Reclamation as part of the cost of the Project. On April 4, 1979 the Nueces River Authority sold $13,000,000 Water Supply Revenue Bonds. Debt Ser- vice on the Nueces River Authority Water Supply Revenue Bonds will be paid by the City from revenues from the sale of water regardless of whether or not the City actually receives and uses water from the project. Water impoundment officially started August 10, 1982. It is anticipated that the City will commence paying the balance of the local share during fiscal year 1983-84, which is scheduled over a 40 year period. See "Notes to Financial Statement 10-B" in Financial Statements. Effective August, 1983, the City adopted new water rates which are approximately 3% higher than the old rates. The water rates charged by the City for treated water vary in accordance with the amount of water delivered and meter size. Inside City limits rates are a minimum of $2.46 to $84.70 based on meter line size from%" to 8 " for the first 2,000 gallons. The rate per thousand gallons decreases in five steps for quantities delivered in excess of the minimum. Outside City limits customers rates are $5.07 to $169.39 depending on the meter line size from'/s" to 8" for the first 2,000 gallons. The rate per thousand gallons decreases in five steps for quantities delivered in excess of the minimum. The City has also contracted to sell treated and raw water to several industrial and municipal customers. The rates charged to the contract customers vary. 28 Operations of the Waterworks System may be found under the caption "Comparative Utility Systems Operating Statements" and number of customers under the caption "Utility Connections". WASTEWATER DISPOSAL SYSTEM The City's Wastewater Disposal System is operated by the Wastewater Division of the Department of Public Utilities. The System consists of approximately 1,056 miles of sanitary sewer mains and seven treatment plants. Sanitary sewer service charges are based on water consumption. In July, 1983, the Wastewater Rate Ordinance was amended to increase Wastewater rates. Inside City limits rates are based on a minimum of $4.62 for the first 2,000 gallons with a one -family maximum of $12.54. The charge, in addition to the minimum, is $0.61 for each one thousand gallons of water. Outside City limits rates are based on a minimum of $9.24 for the first 2,000 gallons with a one -family maximum of $25.08. The charge, in addition to the minimum, is $1.22 for each one thousand gallons of water. Operations of the wastewater disposal system may be found under the caption "Comparative Utility Systems Operating Statements" and number of customers under the caption "Utility Connections". GAS SYSTEM The City has been in the natural gas business since 1922 and at December 31, 1983 had 68,162 con- nections. In January, 1974 the City retired the last outstanding Gas Revenue Bonds and the system is unencumbered. The Corpus Christi Municipal Gas Corporation, a non-profit corporation, was chartered for the exclusive purpose of promoting the public interest in the City of Corpus Christi by constructing, acquiring, owning, leasing and operating municipal gas utility facilities on behalf of and for the benefit of the City. In July, 1975, the City issued $2,000,000 Tax Certificates of Obligation with the proceeds used to pay off the long term indebtedness and current liabilities of the Gas Corporation. The Corporation's assets are now the property of the City and the system was merged with the City's gas system on August 1, 1975. The City's gas supply contracts with Valero Transmission Company, which expire March 1, 1986, provide rates of 19.5 cents per MCF and 24.5 cents per MCF. However, in September, 1973, the Texas Railroad Commission issued an interlocutory order creating an interim rate and increasing the cost of gas to 24.55 cents per MCF to be adjusted monthly to reflect the supplier's monthly weighted average cost of gas. The customers settled with Valero Energy Company on December 31, 1979, and a fixed charge of 10 cents per MCF was assessed in the settlement order for 1980; and, increased to 15 cents on January 1, 1981. The price procedure as set forth in the interlocutory order creating an interim rate and increasing the cost of gas to 24.55 cents per MCF is still being adjusted monthly to reflect the supplier's weighted cost of gas. The rate for February 1984 was $4.38 per MCF. The cost of service gas rate charged to residential customers inside city limits is a minimum of $4.23 for the first MCF or less, then, four reducing steps for quantities delivered in excess of the minimum. General customer inside city limits rates are the same but the rates are reduced in 10 steps for quantities delivered in excess of the minimum. The City has separate rates for residential and general customers outside city limits. The cost of gas from Valero is passed through to the customers by adding the cost of gas to the cost of service. Operations of the Gas System may be found under the caption "Comparative Utility Systems Operating Statements" and number of customers under the caption "Utility Connections". 29 COMPARATIVE UTILITY SYSTEMS OPERATING STATEMENT Fiscal Year Ending 7-31-83 7-31-82 7-31-81 7-31-80 7-31-79 Water System Income $22,519,414 $19,004,581 $13,331,431 $13,822,600 $12,056,380 Expenses 16,054,810 13,648,374 9,074,316 7,852,803 6,062,018 Net Revenue Available For Debt Service$ 6,464,604 $ 5,356,207 $ 4,257,115 $ 5,969,797 $ 5,994,362 Wastewater Disposal System Income $ 8,844,823 $ 7,528,845 $ 6,081,182 $ 4,531,633 $ 4,184,208 Expenses 6,412,288 5,406,210 4,502,406 3,832,693 3,226,666 Net Revenue Available For Debt Service$ 2,432,535 $ 2,122,635 $ 1,578,776 $ 698,940 $ 957,542 Gas System Income $30,180,493 $27,606,228 $22,625,728 $20,550,597 $18,982,275 Expenses 27,634,059 25,869,129 21,301,007 17,628,952 17,462,126 Net Revenue Available For Other Lawful Purposes $ 2,546,434 $ 1,737,099 $ 1,324,721 $ 2,291,645 $ 1,520,149 The Gas System Has No Revenue Bonds Outstanding Note: Accounting principles customarily employed in the determination of net revenues for coverage of debt service have been observed and in all instances exclude depreciation. UTILITY CONNECTIONS (At December 31) Year Water Sewer Gas Electric Telephone 1976 60,575 52,638 57,669 71,715 160,888 1977 61,414 56,176 58,002 73,324 166,584 1978 62,866 58,603 58,603 73,966 178,789 1979 65,298 57,476 58,991 76,612 186,427 1980 71,333 64,244 59,363 82,048 189,306 1981 72,165 60,310 59,748 85,940 196,063 1982 72,348 61,633 60,191 89,082 190,684 1983 76,707 71,183 68,162 93,195 162,451(1) (1) Due to breakup of A.T.&T. the 1983 figure only reflects customer hookups. 30 INTERNATIONAL AIRPORT Corpus Christi International Airport has 2,230 acres with two fully instrumented main runways of 7,500 feet and 6,080 feet. Enplaning and deplaning passengers totaled 804,181 for the fiscal year ended July 31, 1983, a decrease of 17,335 over the previous fiscal year. There are 53 scheduled airline arrivals and departures daily. For the fiscal year ended July 31, 1983 the City had net loss of $349,208 on operation of the airport. The commercial ramp overlay, parking lot and access roads projects and terminal building improvements have been completed. TRANSIT SYSTEM The City Transit System operates 42 City transit, 4 charter, 9 paratransit vehicles and serves an estimated 1,469,259 passengers in 1982-83. Total operating revenues amounted to $1,762,835 in 1982-83, a decrease of 1% from the previous year. The Transit System's net loss for the year ended July 31, 1983 was $218,059, a decrease of $150,052 over the previous fiscal year. ECONOMIC AND DEMOGRAPHIC CHARACTERISTICS Population The 1980 U.S. Census population for Corpus Christi was 232,134, which was approximately 13% greater than the population reported in 1970. The table below shows the history of population from 1920 to 1980: Population U.S. Census Figures for 1920-1980 Percent of Increase Over Preceding Census 1920 10,522 27% 1930 27,741 163% 1940 57,301 106% 1950 108,053 88% 1960 167,690 54% 1970 204,525 21% 1980 *232,134 13% * See Caption "City of Corpus Christi" It is estimated that by the year 2000 the population of the City will range between 302,000 and 360,000, a 30% to 50% increase over the current population. Corpus Christi Standard Metropolitan Statistical Area (SMSA) consists of Nueces and San Patricio Counties and according to the 1980 U.S. Census had a population of 326,228. It is estimated that the population in the SMSA will exceed 403,000 in the next 20 years. Trade Area and Location Corpus Christi's trade area consists of five counties, Nueces, San Patricio, Aransas, Jim Wells, and Kleberg. Each of the Counties maintain solid and diversified economic basis which contribute material support to Corpus Christi, due to its location as a trade center and shipping point. The land is generally flat with strong mineral deposits, rich soil, excellent climate, and a growing season of approximately 300 days. Grain sorghums and cotton are the principal agricultural crops. The region also has a strong supply of livestock including beef, dairy cattle, hogs and poultry. Cash receipts for agriculture and livestock products in 1982 for the five county area exceeded $217 million which reflect an 80% increase over 1978 production. It is estimated that the economic impact from these industries to the region exceeded $825 million in 1982. The Oil and gas industry is a major factor in the growth and economic stability within the trade area. Mineral values vary depending on world market and demand. This industry also provides a secondary market for petro -by-products and chemicals. In 1981 three projects in excess of $1.2 billion were under construction or announced, which will in the future expand the by-product market. 31 The trade area's principal outlet for agricultural and petroleum products is the Port of Corpus Christi, which has served the area for over fifty-seven years. The rebuilt grain elevator, completed in 1983, will add to the port's capacity to handle various agricultural products. Corpus Christi has one of the most strategic located waterways in the Southwest with deepwater transportation to the Gulf of Mexico and barge traffic all along the Texas coast via the Intra -coastal waterway. The nearest other port is in Brownsville, 160 miles to the south; nearest retail and wholesale outlet is San Antonio, 145 miles to the northwest; and the nearest heavy industry competition is Houston, 210 miles to the northeast. Industry Corpus Christi industry provides a diversified product market including metal fabrication, chemical processing, farm and ranch equipment, oil field equipment, cement, clothing manufacturing, food processing, electronic and petrochemical products. The diversification is primarily due to the commitment to the Port of Corpus Christi to provide a quality deep water facility. The Port of Corpus Christi opened the area to world markets in 1926. Deeper channels have for decades allowed Corpus Christi to be a competitive port for bulk commodities requiring large, deep draft vessels. It is the terminus of a network of oil and gas pipelines throughout Southwest Texas and extending into West Texas. The port is located in Corpus Christi Bay and extends into the Gulf of Mexico along the South Texas Coast. The inner harbor lies along a 914 mile stretch of dredge inland channel and basins within Corpus Christi Bay. The port has four divisions, including the inner harbor which has a channel depth of forty feet; Harbor Island, near the entrance of the Gulf of Mexico; Port Ingleside and La Quinta, both of these locations are along the North shore of Corpus Christi Bay. Harbor Island, Port Ingleside, and La Quinta have all been deepened to 45 feet. The Port of Corpus Christi is America's deepest inshore gulf port. The extension of the 45 foot channel across Corpus Christi Bay was completed in 1978 and the final leg of dredging for the Inner Harbor has been scheduled by the Corp of Engineers to be completed in 1986. With completion of the dredging, the project will provide the deepest channel on the Gulf Coast for all reaches of the port. This project will enhance the area by expanding the ability of the Port to handle additional bulk commodities. In 1983, the Port Commissioners received a marketing study from Booze -Allen & Hamilton, Inc. outlining possible future market potentials. This study is being used as a model for expansion projects at the Port. Currently, the Port Commissioners are considering the modification of the Bulk Materials Dock to reflect a substantial increase in its load out capacity. On July 1, 1983, the Corpus Christi Public Elevator reopened for business. The Elevator has been out of service since the disastrous explosion and fire in April, 1981. Grain exports have been a vital factor in the activity of the Port. As U.S. grain exports become more competitive in the world market place, the Elevator will show increasing economic activity. The last two months of 1983 produced a large fertilizer bagging order which will carry over into February of 1984. The bagging plant operation is expected to increase its activity during 1984. It is estimated 1,169 ships and 5,832 barges used the Port's facilities in 1983. There are a total of 6,816 linear feet of wharf frontage consisting of 25 public docks, 12 are dry docks, 1 bulk material, 2 grain elevators (1 private — 1 public) and 11 oil docks. In addition, there are 21 private oil docks and 7 dry cargo docks owned and operated by major industries. There is also a public compress with an average capacity to handle 2,500 bales of cotton per eight hour day. Total tonnage for 1983 was 47.2 million up 9.3% compared to 43.2 million in 1982. Petroleum tonnage in 1983 increased 16% from the 1982 figure of 34.5 million to 40.2 million. Port activity during 1983 was affected by world economic conditions and is expected to improve as the world economy recovers. During 1981 the City of Corpus Christi established the Corpus Christi Industrial Development Corporation to facilitate business expansion within the City. The corporation offers tax exempt Industrial Revenue Bonds funding for various new and expansion projects. The Port of Corpus Christi has also developed a similar non-profit organization to provide tax exempt Industrial Revenue Bond funds to industries within Nueces County. Both corporations were established by the Texas Development Corporation Act of 1979, as amended, and are guided by the Internal Revenue Service rules and 32 regulations. To future enhance the ability of Corpus Christi in world markets, efforts are now underway to create a foreign trade zone to expand industrial development and to open new trade areas. Establishment of Industrial Districts In 1981 several industrial districts had been established upon the voluntary execution of industrial district agreements by the City and industries located in two general areas of the City's extraterritorial jurisdiction. Article 970A, Revised Civil Statutes of Texas, known as the "Municipal Annexation Act" gives the governing body of any city the right, power, and authority to designate any part of the area located in its extraterritorial jurisdiction as an industrial district. All industrial district agreements were extended for a seven year period effective January 1, 1984. The terms of the industrial district agreement provide that the City has no obligation to extend to the industrial districts any City services except fire protection to certain industries who pay for this service, and other City services which are paid for by the industries separate and apart from the annual industrial district in lieu of tax payment. The industrial district agreement and the methods of determining the amount of the annual payment are subject to all provisions of law relating to determination of market value including, but not limited to, laws relating to rendition, assessment, equalization, and appeal. It is anticipated that the City will receive approximately $1,841,000 in 1983 industrial district in lieu of tax payments if all industries who have indicated an intent to enter into an industrial district agreement do so. See caption "Industrial Districts" elsewhere in this Official Statement for more details. Major Industries ASARCO Incorporated ASARCO brings concentrated zinc ores in ocean-going ships from mines in various foreign countries and from western states. Planned originally to produce 3,500 tons of zinc per month, the plant had three major expansions of production capacity in 1953, 1956 and 1960 and has the capacity to produce more than 100,000 tons of zinc metal per year and 80,000 tons of sulphuric acid. Smaller quantities are produced of other metals that are found in the zinc ores. (The company recently completed and put into service a 350 -ton -per -day acid plant at a cost of $15.7 million. Construction was also started on a $26.3 million program to modernize the leaching and electrolyte purification systems.) The number of employees had increased with each plant enlargement. Effective February, 1984, ASARCO announced plans to reopen the plant following a temporary closing, and expects to employ 350 people. American Chrome & Chemicals, Inc. In late 1979, American Chrome & Chemicals, Inc. purchased the chrome chemicals business of PPG Industries which included a 358 acre site. ACC is a subsidiary of the 150 year old Harrisons & Crossfield Ltd., a worldwide chemical manufacturing and distribution firm headquartered in Great Britain. ACC also announced a $10 million plant expansion and product output growth over the next 5 years. About 50 employees were added during the expansion which brought ACC's employment to approximately 200. Baker Marine Corporation Baker Marine Corporation and its operating subsidiaries include; Baker Manufacturing Co. and Baker Marine Engineers are primarily engaged in the design and construction of self -elevating mobile offshore drilling platforms. Baker Marine Corporation has two major manufacturing facilities. Cabaniss Field in Corpus Christi has over 110,000 square feet under cover where it offers precision cutting and fabrication of high strength steels. This facility is used primarily for the fabrication of elevating gear units, cranes, anchor winches, skidders and other work where close tolerances and highly skilled craftsmanship is required. Baker Marine Corporations' main facility is located across Corpus Christi Bay near Ingleside and has over 1,600 feet of water frontage with unlimited width and height access to the Gulf of Mexico. In 1982 Baker Marine Corpo- ration announced plans to construct an offshore drilling rig service and repair facility at an estimated cost of $1 billion and employing 5,000 persons over the next several years. Present employment is about 350. 33 Berry Contracting, Inc. Organized in 1953, Berry Contracting, Inc. is a multi -faceted corporation operated to meet the needs of today's highly complex industrial facilities. Berry Engineering, Inc., Berry Fabricators, and Berry Industrial Piping are each active operating divisions of the parent organization, offering engineering design and construction services, specialized hauling, heavy equipment erection, pressure vessel design and fabrication, and pipe fabrication and erection. Berry furnishes several hundred skilled craftsmen to various industries for daily maintenance work. Berry has sand, clay, rock, topsoil, and caliche pits from which thousands of cubic yards are loaded out by its equipment and delivered to industrial and commercial sites in the area. In March of 1978, Berry completed construction of an open loading dock designed for multi -crane lifts of up to 850 short tons. Completion of this facility has greatly enhanced the Port's loading and unloading capability. Presently, employment is averaging 1,000. Brown & Root, Inc. In early 1975, Brown & Root, Inc. announced their location of a marine fabrication yard on their site at Harbor Island. Production began ahead of schedule in late 1975. The company fabricates large jacks and production platforms used in production of offshore oil and gas. Currently, they have developed 100 acres of their 300 acre tract and employ more than 400 persons. H. E. Butt Grocery Company (H. E. B. Food Stores) H. E. B. began operations in 1905 with one small grocery store in Kerrville, Texas. The company now operates 153 food stores in 77 cities in central and south Texas. In 1939, corporate offices were moved to Corpus Christi. Also located in Corpus Christi are the company's bread bakery plant, park products manufacturing plant, district warehouse, and 12 Corpus Christi food stores. Employment in the City is approximately 2,100 and over 15,000 company wide. E. L. Caldwell & Sons E. L. Caldwell & Sons, one of Corpus Christi's oldest manufacturing companies, maintains a 4 acre manufacturing plant which sells a wide range of farm products all over the nation and in more than 50 foreign countries. In March, 1977, Caldwell combined its operations with interests of the Pritzker family. In 1980, Caldwell completed a 10,000 square foot expansion as the result of Caldwell's purchase of a portion of a Kansas cotton harvesting firm. Present employment is 150 persons. Celanese Chemical Company The Chemical Plant of the Celanese Chemical Company in Bishop, Texas near Corpus Christi, began operating in 1945. Original production consisted of 5 basic chemicals, principally acetic acid and acetone, chemicals used at other Celanese plants to make cellulose acetate, a product used in making synthetic fabrics and plastics. In 1961 a unit was built to produce Celcon, a thermoplastic resin. With the addition of subsequent Celanex and Nylon units, the Plastics and Specialties Company evolved, producing engineering resins used for such applications as packaging, automotives, housing, plumbing fixtures and appliances. Today, the Chemcel Plant consists of both the Chemical Company and the Plastics and Specialties Company which together have more than 950 employees. Celanese Technical Center The Celanese Technical Center is located in Corpus Christi and the facilities have steadily expanded to match the overall growth of the division. The research scientists at the center have been credited with developing 75% of the product marketed by the Celanese Chemical Company. The center presently employs 320 employees. Centex Cement Corporation Centex Cement Corporation uses limestone and clay to produce various types of cement. Since the plant was built, there has been substantial investment in new equipment for manufacturing and handling facilities. Centex has approximately 115 employees. 34 Champlin Petroleum Company Champlin Petroleum Company, a subsidiary of Union Pacific, began business in 1936 with 24 employees and with a capacity to process 2,000 barrels of crude oil per day. Many production units have been added since then, including catcrackers and catalytic reformers. The Great Southern Chemical Corporation, a petrochemical producer, was purchased and incorporated into the plant. Production has gradually grown so that more than 625 employees are required as 175,000 barrels of crude per day are converted into automotive products and petrochemicals. Facilities were completed in 1983 at a cost of 5339 million to process heavier and higher sulphur content crude into clean transportation fuel. Coastal Iron Works, Inc. Coastal Iron Works, Inc. was founded in the 1940's. It is now a diversified company with three divisions: steel fabrication — coded heat exchangers and pressure vessels; ship repair; and a shipyard for new construction and repair of tugs and barges. The machine shop was expanded in 1972 and again in 1980. A new fabrication building for large steel work was added in 1976, bringing the total shop space to 52,000 square feet. Current employment is approximately 145 employees. Coastal States Petroleum Company Beginning as an independently owned, small refinery in 1936, Terminal Refining Company was sold in 1942 to Sinclair Oil and Refining Company. The refinery later expanded to 29,500 barrels of crude oil per day. Since purchased by Coastal States Petrochemical Company, additional producing units have been completed and expanded with major emphasis on petrochemicals, transportation fuels, heavy fuel oils and petroleum coke. The refinery now has a capacity of 160,000 barrels of crude oil per day and there are approximately 214 employees. Corpus Christi Petrochemical Company CCPC is a world scale ethylene plant which came on stream in July, 1980. It employs approximately 300 permanent employees and up to 200 contract maintenance and security personnel. The plant has the capacity to produce 1.2 billion pounds per year of ethylene, plus comparable amounts of propylene, crude butadiene, benzene, and other chemical products. CCPC is ajoint venture of Union Pacific Corporation of New York, Imperial Chemical Industries Limited of England, and Solvay & Company of Belgium. E. I. DuPont de Nemours & Company In 1971 DuPont purchased 1,560 acres for the construction of a plant to manufacture fluorocarbons. Facilities construction began in early 1972 and onstream operations began in early 1974. The Corpus Christi plant manufactures caustic soda, chlorine, freon fluorocarbons, and chlorocarbons used as intermediates for the finished freon products here and at other DuPont locations. Plans have been announced for the construction of facilities to produce cyclohexane, an intermediate chemical used in the manufacture of man-made fibers. Employment at the Corpus Christi plant is approximately 650. Energy Industries Energy Industries is a progressive gas compressor packaging and manufacturing company serving the worldwide petroleum industry. From its headquarters in Corpus Christi, Energy Industries directs trade through its five branch facilities in the major oil and gas producing regions of the United States and Canada. Energy Industries was formed in 1969. Current employment is approximately 175. Geosource, Inc. Geosource, Inc. provides products and services to the petroleum industry on a worldwide basis. Geosource's Smith Systems Operation, headquartered in Corpus Christi since 1978, designs and manufactures heat transfer equipment, precision petroleum measurement and control systems, and related electronic instrumentation systems. The two plant operation currently employs 250. With today's refineries and chemical processing plants demanding more accurate and reliable measurement of their increasingly valuable products, expansion is predicted. 35 Goldston Corporation The Goldston Corporation was initially organized in 1946 for the construction of bridges, docks and other waterfront structures, and has served the South Texas and Gulf Coast area for over 39 years. The company has expanded to provide design and construction services to a wide range of industrial and public sector clients including project areas in petrochemicals, oil refining, chemicals, power generation, mining, civil design, marine oilfield services, marine shipyard work and commercial building construction. Current employment is approximately 300. Koch Refining Company (Formerly Sun Petroleum Products) Koch Refining Company is one of the newest and most highly automated in the nation. Its con- struction was completed in 1953 and original capacity of 26,000 barrels a day. Since then, many new production units have been added. Daily throughput has been increased gradually until now it is 110,000 barrels a day. In addition to refined petroleum products, the plant annually produces 100 million pounds of Paraxylene which is used in making synthetic fibers. There are 575 employees. Levi Strauss & Company Levi Strauss & Company is the world's largest garment manufacturer. The Corpus Christi facility started manufacturing Levi's for Gals in 1970, in a 38,000 square foot building. Now located in a 100,000 square foot facility, the company could employ approximately 700. This will increase production capacity to almost 3 million pair of women's slacks a year. Current employment is about 500. Naval Air Station In the training of pilots and maintenance of aircraft, the Navy uses more than 2,000 military and more than 1,000 civilian personnel. Corpus Christi Army Depot The Corpus Christi Army Depot has approximately 3,900 civilian and some military personnel. CCAD is the Army's facility for complete maintenance, overhaul and repair of Army helicopters. Quintana Petrochemical Company (Formerly Nueces Petrochemical Company) Quintana Petrochemical Company was a joint venture of Quintana Refining Company and Howell Corporation. The plant was reopened in 1973 after being closed in 1970. The refinery has been expanded and is now refining over 30,000 barrels of crude a day with a rated capacity of 35,000 barrels a day. Aromatics and fuel oils are the main products. The Company is also rated as the 6th largest benzene producer in the country. Current employment is approximately 180. Reynolds Metals Company Reynolds Metals Company has maintained operations in the Coastal Bend area since 1952. The company's Marine Division operates ocean-going vessels throughout the world. The Sherwin alumina plant uses bauxite ore transported from the Caribbean by the Marine Division to produce alumina. A portion of the Sherwin plant's production goes to the Reynolds San Patricio reduction plant where, through an electrolytic process, metallic aluminum is made. At full production, the three facilities have approximately 2,200 employees. With one plant permanently closed, current employment is about 1,200. Robstown Manufacturing Company (Haggar Slacks Company) Haggar, one of the largest manufacturers of men's dress slacks began operations in Robstown during 1967. Innovative ideas with new fabrics, colors, styles and fashions have kept Haggar the leader in dress slacks for men. The plant has been very successful with current employment of 600. Saber Refining Company In 1976, Saber Refining started production on a 62 -acre tract on Up River Road. Primary products are #2 and #5 fuel oils, napthas, and related petroleum products. Saber has constantly expanded and improved the refinery's process capacity and has constructed a dock to handle vessels directly. Saber purchased 140 acres of prime industrial property along the ship channel previously owned by Corn Products Company. Additional storage facilities and major expansions of the refinery are planned for this location. In 1980, Valero Energy Corporation agreed to purchase half interest in Saber with the option to 36 complete the purchase within five years. The Saber -Valero refining modernization program cost over $535 million and is designated to turn bottom of the barrel crude oil into high-value products. Valero assisted in financing the Saber expansion. Current employment is approximately 425 permanent employees. Diamond Shamrock (formerly Sigmore Corporation) In 1977 became an active user of the Port when it leased a site on the ship channel and purchased tankage formerly owned by Texaco. Diamond Shamrock's purchase included the refinery at Three Rivers and a pipeline company which operates pipelines carrying crude oil from Harbor Island to Three Rivers and refined products to the terminal on the Inner Harbor. Southwestern Refining Company (Wholly-owned subsidiary of Kerr-McGee) Southwestern Refining Company was constructed and began operations in 1936 with the capacity to process 3,500 barrels of crude oil per day. Gradually that capacity has been increased. Major expansions have brought daily through -put capacity to 120,000 barrels per day. A 1974 modernization enables the refinery to process the imported sour crude. A 1980 expansion enables it to increase gasoline production with improved octane. In addition to the regular refinery products, it manufactures benzene, toluene, xylene and solvents. Employment is approximately 400 employees. TRW, Inc. During the fall of 1975, TRW, Inc. established a resistor manufacturing facility in Corpus Christi. TRW resistors are manufactured for industrial, instrumentation, communication, computer, lighting, and military applications. During 1977 the Corpus Christi facility became the headquarters for TRW's Precision Thin Resistor manufacturing operations. Employment is about 350. Veeco-Lambda In 1973, Power Monolithics, Inc., a division of Veeco Instruments, located an electronics plant in Corpus Christi. The building, on City property at International Airport, opened in the Fall of 1974 to produce semiconductors and integrated circuits. Current employment is 230. In late 1978, the name was changed to Veeco-Lambda to better associate the operation with the parent company. Weatherby Engineering During 1974, Weatherby Engineering started construction of a fabrication yard in Rincon Industrial Park in Corpus Christi. The metal fabrication facility is producing generator stations, compressor stations, package process plants and other products for energy related companies. The company has about 100 employees. Private Utilities Southwestern Bell Telephone Company supplies telephone service to Corpus Christi. In 1983, there were 111,048 telephone access lines in the Corpus Christi exchange. In November, 1977 the "downtown" central office serving approximately 32,000 customers was converted to the most modern electronic switching system. The equally large "Terminal" central office electronic switching system was completed in 1980 and all other central offices within the City are scheduled for conversion to electronic switching in the near future. Electricity is furnished by Central Power & Light Company (CPL) whose principal offices are located in Corpus Christi, CPL supplies electric service to a 44,000 square mile area which reaches into 44 counties of South Texas. Three of CPL's largest power stations are located in Corpus Christi. CPL is participating with three other utilities in building a two -unit nuclear plant that is scheduled to be operational in mid 1980's. The company's first coal-fired plant, near Victoria, Texas, began commercial operation in June of 1980. 37 Banking There are eighteen banks located in the City. The table below sets forth the total deposits as of December 31 for the past ten years: Year Amount Year Amount 1974 $651,491,728 1979 $1,095,251,590 1975 730,844,355 1980 1,283,887,000 1976 792,087,137 1981 1,452,676,170 1977 866,207,576 1982 1,619,307,827 1978 963,486,940 1983 1,889,486,199 Transportation The Port of Corpus Christi provides excellent access to the sea lanes of the world. The Corpus Christi International Airport is served by five airlines and the City is buying additional land for future expansion. Three rail lines serve the City and provide good transit time throughout the United States and Mexico. The City is tied into the Interstate highway network providing an open highway access to the entire nation. Educational and Hospitals There are five separate school districts within the City limits having ten high schools, sixteen junior high schools and forty-nine elementary schools. Higher education is provided by Corpus Christi State University at Corpus Christi; a two year upper level university. The January, 1983 enrollment was 3,534. The University projects an enrollment of 5,000 by mid 1980's. The Corpus Christi Junior College District operates Del Mar College and offers two year college lower level and vocational certificate programs. The January, 1983 enrollment consisted of 7,969 students for college credit associate degrees and 1,019 full time students in vocational education. The U. S. Geological Survey operates a research facility at the Corpus Christi State University campus conducting geological research on the sea floor of the Gulf of Mexico and the Caribbean Sea. The University of Texas Marine Science Institute is located in Nearby Port Aransas and provides graduate level work and research opportunities in the broad field of marine sciences. There are nine hospitals in the City with a total of 1,801 beds and several expansion programs underway. Employment The following table indicates the total civilian employment in the Corpus Christi SMSA for the period December, 1983 as compared to the prior periods of November, 1983 and December, 1982: Prior Periods December November December 1983 1983 1982 Civilian Labor Force 171,630 170,000 163,900 Unemployment 17,000 16,300 13,600 Percent Unemployment 9.9 9.6 8.3 Total Employment 154,620 153,700 150,300 38 Construction The tables below indicate the amount of construction activity in Corpus Christi: Building Permits (annually) No. of Permits Value 1974 2,930 $ 57,753,925 1975 2,950 51,796,975 1976 3,490 56,644,920 1977 4,028 82,754,296 1978 4,262 134,018,886 1979... 4,277 162,296,357 1980 4,396 186,722,846 1981 4,658 206,947,575 1982 4,865 239,647,280 1983 5,328 356,892,856 Building Permits (Monthly — 1983) Residential Commercial Total No. of Permits Value No. of Permits Value No. of Permits Value January 154 $10,593,938 31 $15,147,905 185 825,741,843 February . 183 16,516,163 36 7,833,267 219 24,349,430 March 229 14,377,575 39 4,455,827 268 18,833,402 April 210 20,651,546 33 4,027,412 243 24,678,958 May 204 12,873,838 30 9,618,864 234 22,492,702 June 200 14,205,742 35 8,484,950 235 22,690,692 July 149 13,397,535 38 21,911,266 187 35,308,801 August 138 17,636,548 26 5,986,064 164 23,622,612 September 133 24,846,806 24 788,693 157 25,635,499 October 143 18,034,033 41 38,393,622 184 56,427,655 November 98 12,411,824 53 4,113,305 151 16,525,129 December 115 7,911,446 41 7,628,960 156 15,540,406 Tourist and Convention Business The Corpus Christi Convention and Tourist Bureau report on the convention and tourist industry indicates 322 conventions with 59,202 delegates spent $30.5 million in Corpus Christi during 1983. It is estimated tourists spent an additional $147 million. The City has recently constructed a Community Cultural Center which is part of the Bayfront. The design treats the Park as an extension and terminus of Shoreline Drive, providing a focus toward the Bay. Located in the uniquely designed Community Cultural Center is a new 77,821 square foot Auditorium with a seating capacity of 2,500 persons. Also the Harbor Playhouse, a 500 seat theatre is located in the center along with the Art Museum of South Texas and Corpus Christi Museum. $14,000,000 of Bonds sold earlier was used to construct a Community -Conven- tion Facility, including an exhibit hall, meeting rooms, banquet hall, additional auditorium improvements and further acquisition and development of the site at the Bayfront Center. The Project design features an exhibit hall with 75,000 net square feet of exhibit space, a 30,000 square foot assembly and banquet hall to seat 2,000 persons for dinner or 4,000 for general meeting, 19,000 square feet for up to 14 meeting rooms, plus storage, lobby, loading dock, office, ticket area, catering -kitchen mechanical operations, halls, rest - rooms and elevators. $4,000,000 of Tax and Revenue Certificates of Obligation were sold in 1979 and were to be used to develop parking facilities and acquire additional equipment for the Convention Center facilities. Due to the new Convention Center, two major convention hotels are under construction and others are discussing expansion programs or plans to build in Corpus Christi. At the present time there is approximately 4,000 first class hotel rooms in Corpus Christi with an additional 1,200 rooms either under construction or planned within the next 18 months. 39 People are attracted by a desire to visit the Gulf Coast, good weather and a splendid system of high- ways and causeway to Mustang Island and Padre Island where they can enjoy bathing and other recreational advantages offered by the Gulf. Because of the Gulf breezes, winters are mild and summers are comfortably cool with an annual average mean of 70 degrees. Boating and fishing accommodations are good and Port Aransas on Mustang Island is famous for deep sea fishing. The National Seashore Recrea- tional Area on Padre Island has an 88 mile shoreline and excellent facilities are provided by the National Park Service. SELF INSURANCE PROGRAM The City of Corpus Christi has been self-insured for tort claim liability since November, 1978. Effective August 1, 1982, the City became self-insured for Group Health Insurance and on March 1, 1983, the City became self-insured for Workman's Compensation insurance. Effective October, 1983, with the exception of Group Health Insurance, the City placed all insurance and claims handling with one carrier. At that time the City's total maximum exposure was increased to $2,700,000 and the excess liability policies were increased to $25,000,000. After providing for an estimated liability of $462,000 for general and automobile liability claims and $675,496 for estimated group health insurance claims, the City's unreserved retained earnings as ofJuly 31, 1983 totaled $1,944,638. LITIGATION Various lawsuits pending against the City involve claims relating to general liability, automobile liability, civil rights actions and various contractual matters. In the opinion of management and the City Attorney's office, the outcome of the above pending litigation will not have a material effect on the City's financial position or operations. LEGAL OPINIONS The City will furnish to the representative of the successful bidder, a complete transcript of proceedings had incident to the authorization and issuance of the Bonds, including the unqualified approving legal opinion of the Attorney General of the State of Texas, as to the Initial Bonds to the effect that the Bonds are valid and legally binding obligations of the City, and based upon examination of such transcript of proceedings, the unqualified approving legal opinion of Messrs. McCall, Parkhurst and Horton, Bond Counsel, to like effect and to the effect that the interest on the Bonds issued in compliance with the provisions of the ordinance is exempt from federal income taxation under existing statutes, regulations, published rulings and court decisions. The customary closing papers, including a certificate to the effect that no litigation of any nature has been filed or is then pending to restrain the issuance and delivery of the Bonds or which would affect the provision made for their payment or security, or in any manner questioning the validity of said bonds, will also be be furnished. Messrs. McCall, Parkhurst and Horton, Dallas, Texas, were not requested to participate, and did not take part in the preparation of the Official Statement, and such firm has not assumed responsibility with respect or undertaken independently to verify any of the information contained therein, except that, in its capacity as Bond Counsel, such firm has reviewed the information describing the Bonds in such Official Statement, Official Notice of Sale and Official Bid Form to verify that such descriptions conform to the provisions of the ordinance. The legal fees to be paid Messrs. McCall, Parkhurst and Horton, Dallas, Texas, for services rendered in connection with the issuance of the Bonds are contingent on the sale and delivery of the Bonds. The respective legal opinions of Bond Counsel will be printed on the Bonds. 40 FINANCIAL CONSULTANTS M. E. Allison & Co., Inc., San Antonio, Texas is employed as financial consultant to the City in con- nection with the issuance of the Bonds. The financial consultants fee for their services is contingent on the sale and delivery of the Bonds. The financial consultant will not submit a bid on the Bonds. AUTHENTICITY OF FINANCIAL INFORMATION The financial data and other information contained herein have been obtained from the City's records, audited financial statements and other sources which are believed to be reliable. There is no guarantee that any of the assumptions or estimates contained herein will be realized. All of the summaries of the statutes, documents and resolutions contained in this Official Statement are made subject to all provisions of such statutes, documents and resolutions. These summaries do not purport to be complete statements of such provisions and reference is made to such documents for further information. Reference is made to original documents in all respects. INDEPENDENT AUDITS The financial statements as of July 31, 1983 included in this Official Statement have been examined by Fox & Company, Corpus Christi, Texas, Independent Certified Public Accountants, to the extent stated in their report appearing herein, and have been so included in reliance upon such report given upon the authority of that firm as experts in accounting and auditing. CITY'S ANNUAL FINANCIAL REPORTS Copies of the Director of Finance annual report of the City for each of the City's Last five fiscal years are available to prospective purchasers at the office of the Director of Finance, Corpus Christi, Texas, and may be examined at any reasonable time. CERTIFICATION OF THE OFFICIAL STATEMENT This Official Statement adopted and approved and the use thereof approved and ratified by the City Council on this the 28th day of March, 1984 /s/ Attest /s / Bill G. Read City Secretary 41 Edward A. Martin City Manager [THIS PAGE INTENTIONALLY LEFT BLANK] 14 CITY OF CORPUS CHRISTI, TEXAS NOTES TO FINANCIAL STATEMENTS YEAR ENDED JULY 31, 1983 2. Summary of Significant Accounting Policies (Continued) GOVERNMENTAL FUNDS: General Fund - The general operating fund of the City. 'It is used to account for all financial resources except those required to be accounted for in another fund. Special Revenue Funds - Special Revenue funds are used to account for the proceeds of specific revenue sources (other than expendable trusts and major capital projects) that are legally restricted to expenditures for specified purposes. Debt Service Funds - Debt Service funds are used to account for the accumulation of resources for, and the payment of, general long term debt principal, interest and related costs. Capital Projects Funds - Capital Projects funds are used to account for financial resources to be used for the acquisition or construction of major capital facilities (other than those financed by Proprietary Funds and Trust Funds). NROPRIETARY FUNDS: Enterprise Funds - Enterprise Funds are used to account for operations (a) that are financed and operated in a manner similar to private business enterprises - where the intent of the governing body is that the costs (expenses, including depreciation) of providing goods or services to the general public on a continuing basis be financed or recovered primarily through user charges; or (b) where the governing body has decided that periodic determination of revenues earned, expenses incurred, and/or net income is appropriate for capital main- tenance, public policy, management control, accountability, or other purposes. Internal Service Funds - Internal Service funds are used to account for the financing of goods or services provided by one department or agency to other departments or agencies of the City, or to other governments, on a cost -reimbursement basis. FIDUCIARY FUNDS: Trust and Agency Funds - Trust and Agency funds are used to account for assets held by the City in a trustee capacity or as an agent for individuals, private organizations, other governmental entities and other funds. Expendable trust funds are accounted for in essentially the same manner as governmental funds. Agency Funds are custodial in nature (assets equal liabilities) and do not involve measurement of results of operations. CITY OF CORPUS CHRISTI, TEXAS 13 NOTES TO FINANCIAL STATEMENTS YEAR ENDED JULY 31, 1983 1. General Description of the City of Corpus Christi The City of Corpus Christi was incorporated as a general law city in 1852. In 1909 the City was organized under a City Charter and in 1945 adopted the Council -Manager form of government. The principal services accounted for as general governmental functions include public safety, health, streets, sanitation, park and recreation, planning, zoning and general administrative services. Enterprise funds are used to account for operations such as water, gas, wastewater disposal system, airport, transit and ambulance service. 2. Summary of Significant Accounting Policies The accompanying general purpose financial statements of the City of Corpus Christi are prepared in conformity with generally accepted accounting principles for local governmental units as prescribed by the National Council on Govern- mental Accounting (NCGA). A. Reporting Entity The financial statements of the City includes all funds created under the authority of the City Charter and the operations of organizations which are controlled or dependent on the City. Control or dependence is determined on the basis of financial interdependence, selection of governing authority, designation of management, ability to significantly influence operations, and accountability for fiscal matters. Based on the foregoing criteria, the financial statements of the Corpus Christi Housing Improvement Corpora- tion are included in the accompanying financial statements. Not included in the financial statements are the following non-profit corporations: (1) The Corpus Christi Housing Finance Corporation (2) The Corpus Christi Industrial Development Corporation (3) The Corpus Christi Health Facilities Corporation The purpose of these non-profit corporations is to promote business develop- ment and issue housing revenue or industrial development bonds. These bonds do not constitute indebtedness of the City or of the State and are secured solely from revenues received from the commercial organizations on whose behalf the bonds are issued. The City assumes no responsibility for operating expenses of these corporations; such expenses are financed by fees charged to the commercial enterprises. B. Fund Accounting The accounts of the City are organized on the basis of funds and account groups each of which is considered a separate accounting entity. The operations of each fund are accounted for with a separate set of self - balancing accounts that comprise its assets, liabilities, fund equity, revenues and expenditures or expenses, as appropriate. Government resources are allocated to and accounted for in individual funds based upon the purposes for which they are to be spent and the means by which spending activities are controlled. The various funds are grouped, in the financial statements in this report, into seven generic fund types and three broad fund categories as follows: THIS PAGE LEFT BLANK INTENTIONALLY 12 Totals (Memorandum Only) 1983 1982 $ 7.032,289 $ 5,114,433 3,790,702 3,475,793 $ 10,822,991 $ 8,590,226 716,212 2,347,726 6,757,855 5,009,340 6,936,640 36,261,394 -- 102,363 838,319 2,630,701 15,415 13,487 6,183,492 1.754 518,349 2,273,312 -- 397,566 -- 25,000,000 78,857 -- 220,000 -- $ 33,088,130 $ 82,627,869 $ 4,754,626 $ 4,626,820 6,757,855 5,009,340 716,212 3,427,443 838,319 2,660,070 7,035,623 36,261,394 94,150 20,729,087 -- 2,860 1,609,000 1,704,000 -- 199,841 9,416,855 8,826,999 $ 31,222,640 $ 83,447,854 2..136654490 2as.0193985. $ 1,133,956 $ (1,690,347) 1,316,000 (426,000) 2,117,369 2,164,846 1,390,761 (455,598) (1,031,199) 186,566 425,844 161,191 (1,049,282) (33,895) (236,976) (124,078) (1,358,501) (327,075) (105,000) (260,000) (98,983) -- 13,311 (13,311) 815 (444) 22,871 ;1,840) (675,496) -- 9=.118654490 2...58:949852 11 CITY OF CORPUS CHRISTI, TERAS Exhibit 1-E COMBINED STATEMENT OF CHANGES IN FINANCIAL POSITION - ALL PROPRIETARY FUND TYPES YEAR ENDED JULY 31, 1983 Internal ' Enterprise Service Fund Funds Sources of Working Capital: Operations: Net income (loss) $ Item not requirng working capital - depreciation 3,719,907 Working capital provided by operations $ 10,976,668 7,256,761 $ (224,472) 70,795 $ (153,677) Contributions from Bond Funds 716,212 Contributions in aid of construction 6,757,855 Proceeds from notes payable 6,936,640 Contributions of fixed assets - Bond Funds -- Contributions of fixed assets - Federal/State Grant Funds 838,319 Sale of assets 15,415 Decrease in restricted assets 6,183,492 Increase in restricted liabilities 518,349 Reimbursement for Stevens Plant expansion -- -- Proceeds from sale of bonds -- -- Decrease in prepaid insurance -- 78,857 Increase in long-term portion of estimated claims liability -- 220,000 Total sources of working capital $ 32,942,950 $ 145,180 Uses of Working Capital: Acquisition of Fixed Assets: From revenues From contributions in aid of construction From Bond Funds From Federal/State Grant Funds From notes payable Increase in restricted assets Decrease in restricted liabilities Decrease in revenue bonds Increase in prepaid insurance Increase in construction in progress Total uses of working capital Net increase (decrease) in working capital $ 4,650,477 $ 104,149 6,757,855 -- 716,212 -- 838,319 7,035,623 94,150 1,609,000 9,416,855 $ 31,118,491 $ 104,149 98..188248459 1 41,031 Elements of Net Increase (Decrease) in Working Capital: Cash $ 1,978,155 $ (844,199) Investments 342,000 974,000 Receivables (net) 1,664,973 452,396 Due from other funds 777,733 613,028 Due from other Governmental Agencies (1,047,745) 16,546 Inventory 116,390 309,454 Accounts payable (343,763) (702,516) Other accrued expenses (196,856) (40,120) Due to other funds (1,276,571) (84,933) Current portion of revenue bonds payable (105,000) -- Current portion of notes payable (98,983) -- Due to restricted funds 13,311 -- Deposits 815 -- Current portion of estimated claims liability -- 22,871 • Estimated group health insurance claims (675,496) ' Net increase (decrease) in working capital 123.118241459 2 411,222 THIS PAGE LEFT BLANK INTENTIONALLY 10 CITY OF CORPUS CHRISTI, TEXAS Exhibit 1-D COMBINED STATEMENT OF REVENUES, EXPENSES AND CHANGES IN RETAINED EARNINGS - ALL PROPRIETARY FUND TYPES YEAR ENDED JULY 31, 1983 Operating Revenues: Charges for services Internal Totals Enterprise Service (Memorandum Only) Funds Fund 1983 1982 $ 62,517,154 $ 9,801,015 $ 72,318,169 $ 62,260,532 Operating Expense: Personal services $ 13,174,310 $ 2,425,688 $ 15,559,998 $ 13,677,640 Materials and supplies 27,676,154 140,541 27,856,695 25,945,046 Contractual services 7,320,088 2,647,737 9,967,825 11,744,996 Other operating expense 8,164,772 132,971 8,297,743 7,283,453 Uncollectible accounts 290,229 -- 290,229 258,440 Depreciation 3,719,907 70,795 3,790,702 3,475,793 Compensated absences 171,716 33,790 205,506 94,074 Self-insurance claims -- 5,143,847 5,143,847 -- Reimbursements (1,886,587) -- (1,886,587) (1,739,813) Total operating expenses $ 58,630,589 $ 10,595,369 $ 69,225,958 $ 60,739,629 Operating income (loss) $ 3,886,565 $ (794,354) $ 3,092,211 $ 1,520,903 Nonoperating Revenues (Expense): Federal Government Operating Assistance Grants $ 1,090,468 $ -- $ 1,090,468 $ 1,133,933 Interest revenue 818,453 279,687 1,098,140 1,470,488 LoVaca settlement trust 343,009 -- 343,009 524,260 Interest expense and fiscal charges (754,948) -- (754,948) (322,898) Miscellaneous 998,572 35,100 1,033,672 252,653 Contribution from Nueces County Hospital District 586,345 -- 586,345 471,849 Recovery of insured losses -- 80,443 80,443 -- Total nonoperating revenue (expense) $ 3.081,899 $ 395,230 $ 3,477,129 $ 3,530,286 Income (loss) before operating transfers $ 6,968,464 $ (399,124) $ 6,569,340 $ 5,051,189 Operating Transfers In (Out): Operating transfers in Operating transers out Total operating transfers Net income (loss) Add depreciation on capital grant fixed assets Increase (decrease) in retained earnings $ 1,430,380 $ 243,654 $ 1,674,034 $ 1,815,894 (1,142,083) (69,002) (1,211,085) (1.752,650) $ 288,297 $ 174,652 $ 462,949 $ 63,244 $ 7,256,761 $ (224,472) $ 7,032,289 $ 5,114,433 422,388 422,388 363,923 $ 7,679,149 $ (224,472) $ 7,454,677 $ 5,478,356 Retained Earnings at beginning of year: As previously reported $ 70,957,226 $ 2,643,710 $ 73,600,936 $ 72,822,041 Accumulated effect of accounting changes (Note 12) (3,969,041) (192,438) (4,161,479) (9,049,681) Prior period adjustment (Note 12) (1,192,931) -- (1,192,931) (1,004,190) As Restated $ 65,795,254 $ 2,451,272 $ 68,246,526 $ 62,768,170 Retained Earnings at end of year ¢_7314746403 2a.2i2263800 Sy_75i701i203 2.23.6=526 The notes to the financial statements are an integral part of chis statement. Special Revenue Funds Debt Service Fund Variance Variance Favorable Favorable Budget Actual (Unfavorable) 841d8et Actual (Unfavorable) $ 1,420,000 $ 1,416,591 $ (3,409) $ 9,722,002 $ 9,551,332 $ (170,670) 1,023,92- 4 914,587 (109,337) 3,711,63- 7 3,712,047 410 -- -- -- 19,612,389 8,292,714 (11,319,675) -- -- -- -- -- -- 1,425,000 1,585,573 160,973 403,058 507,155 104,097 56,234 91,957 35,723 $ 26,171,008 $ 14,843,094 $(11,327,914) $ 11,203,236 $ 11,228,862 $ 25.626 $ 4,109,213 $ 2,681,226 $ 1,427,987 909,475 378,582 530,893 286,534 220,791 65,743 1,827,258 1,053,916 773,342 1,812,582 1,606,460 206,122 26,100 26,100 -- 8,750,986 1,411,770 7,339,216 -- -- -- 6,000,000 6,000,000 -- -- -- -- 5,512,135 5,407,083 105,052 45,000 44,522 478 -- -- -- 50,000 -- 50,000 -- -- -- $ 17,817,148 $ 7,423,367 $ 10,393,781 $ 11,512,135 $ 11,407,083 $ 105,052 $ 8,353,860 $ 7,419,727 $ (934,133) $ (308,899) $ (178,221) $ 130,678 $ 1,907,623 $ 1,553,961 $ (353,662) $ 1,467,325 $ 1,467,479 $ 154 (8,453,565) (7,738,774) 714,791 -- -- -- $ (6,545,942) $ (6,184,813) $ 361,129 $ 1,467,325 $ 1,467,479 $ 154 $ 1,807,918 $ 1,234,914 $ (573,004) $ 1,158,426 $ 1,289,258 $ 130,832 $ 3,005,263 $ 3,005,263 $ $ 10,804,883 $ 10,773,260 $ (31,623) $ 3,.005,263 $ 3,005,263 $ -- $ 10,804,883 $ 10,773,260 $ (31,623) L.4i813i181 Sy.OeS57330041 1s11i963i392 §1230623518 3S_�s�s993209 8 CITY OF CORPUS CHRISTI, TEXAS Exhibit 1-C COMBINED STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET (GAAP BASIS) AND ACTUAL - GENERAL, SPECIAL REVENUE AND DEBT SERVICE FUND TYPES YEAR ENDED JULY 31, 1983 General Fund Variance Favorable Budget Actual (Unfavorable) Revenues: Taxes $ 44,672,998 $ 41,516,894 $ (3,156,104) Licenses and permits 786,150 1,134,261 348,111 Intergovernmental 856,200 810,462 (45,738) Charges for services 8,255,600 8,890,057 634,457 Fines and forfeits 1,522,600 1,637,700 115,100 Administrative service charges 2,478,861 2,478,861 -- General Revenue Sharing -- -- -- Grants -- -- -- Interest on investments 690,000 572,910 (117,090) Miscellaneous 1,447,676 1,790,541 342,865 Total revenues $ 60,710,085 $ 58,831,686 $ (1,878,399) Expenditures: General government $ 10,629,361 $ 9,752,464 $ 876,897 Public Safety 26,889,472 26,191,097 698,375 Streets 6,842,805 6,186,332 656,473 Sanitation 5,024,643 4,788,679 235,964 Health 2,331,556 2,263,579 67,977 Community Enrichment 9,812,552 9,587,121 225,431 Insurance 2,935,574 2,935,574 -- Capital Projects -- -- -- Debt Service: Principal retirement -- -- -- Interest and paying agents' fees -- -- -- Miscellaneous 538,739 151,749 386,990 Reserve appropriation -- -- -- Total expenditures $ 65,004,702 $ 61,856,595 $ 3,148,107 Excess (deficiency) of revenues over expenditures $ (4,294,617) $ (3,024,909) $ 1,269,708 Other Financing Sources (Uses): Operating transfers - in $ 3,617,107 $ 3,622,196 $ 5,089 Operating transfers - out (1,421,962) (1,430,380) (8,418) Total other financing sources (uses) $ 2,195,145 $ 2,191,816 $ (3,329) Excess (deficiency) of revenues and other sources over expenditures and other uses $ (2,099,472) $ (833,093) $ 1,266,379 Fund Balance at beginning of year: As previously reported Accumulated effect in accounting changes (Note 12) As Restated Fund Balance at end of year 5,952,792 5,952,792 271,352 271,352 $ 6,224,144 $ 6,224,144 $ -- $__4,_1241672 5,_391,051 1 261379 The notes to the financial statements are an integral part of this statement. f Expendable Trust Funds Totals (Memorandum Only) 1983 1982 $ -- $ 52,484,817 328,165 328,165 -- 1,134,261 -- 810,462 - - 9,804,644 -- 1,637,700 400,067 577,473 -- 2,478,861 - - 3,712,047 5,969,681 8,292,714 -- 36,410 - - 927,279 238,179 5,315,577 238,626 2,758,761 $ 1,205,037 $ 96,268,852 $ 59,615 $ 12,493.305 476,396 27,046,075 -- 6,407,123 -- 4,788,679 - - 3,317,495 201,323 11,394,904 -- 2,961,674 121,564 317,835 -- 17,335,167 $ 48,863,871 347,500 925,097 774,852 8,624,879 1,477,714 840,081 2,008,542 3,514,315 2,602,710 7,703,419 659,421 207,226 4,832,418 2,961,957 $ 86,344,002 $ 11,560,410 23,785,116 5,639,130 4,778,174 3,289,661 9,893,412 3,053,355 440,139 21,876,898 6,000,000 6,110,000 5.407,083 5,231,908 $ 858,898 $ 97,469,340 $ 95,658,203 $ 346,139 590,000 $ 590,000 $ 936,139 $ 2,021,706 $ (1,200,488) $ (9,314,201 $ 21,570,000 $ 8,000,000 -- 470,000 8,706,205 6,220,369 (9,169,154) (6,283,613) $ 21,107,051 $ 8,406,756 $ 19,906,563 $ (907,445) $ 54,538,357 $ 49,417,586 (10,188,687) $ 2,021,706 $ 44,349,670 1.2895:LW. 42.643256,233 (4,160,471) $ 45,257,115 2.ElaillE2 6 CITY OF CORPUS CHRISTI, TEXAS Exhibit 1-B COMBINED STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - ALL GOVERNMENTAL FUND TYPES AND EXPENDABLE TRUST FUNDS YEAR ENDED JULY 31, 1983 Governmental Fund Types Special Debt Capital General Revenue Service Projects Fund Funds Fund Funds Revenues: Taxes $ 41,516,894 $ 1,416,591 $ 9,551,332 $ -- State Court related taxes -- -- -- Licenses and permits 1,134,261 -- -- Intergovernmental 810,462 -- Charges for services 8,890,057 914,587 -- Fines and forfeits 1,637,700 -- __ Other contributions and donations -- -- 177,406 Administrative service charges 2,478,861 -- -- General Revenue Sharing -- 3,712,047 -- U. S. Government participation -- -- 5,969,681 Grants 8,292,714 -- State of Texas participation -- -- -- 36,410 Special assessments -- -- -- 927,279 Interest on investments 572,910 -- 1,455,091 3,049,397 Miscellaneous 1,790,541 507,155 222,439 -- Total revenue $ 58,831,686 $ 14,843,094 $ 11,228,862 $ 10,160,173 Expenditures: General government $ 9,752,464 $ 2,681,226 $ $ Public Safety 26,191,097 378,582 -_ Streets 6,186,332 220,791 Sanitation 4,788,679 -- Health 2,263,579 1,053,916 Community Enrichment 9,587,121 1,606,460 Insurance 2,935,574 26,100 -- Miscellaneous 151,749 44,522 -- Capital Projects -- 1,411,770 15,923,397 Debt Service: Principal retirement 6,000,000 Interest and paying agent fees 5,407,083 Total expenditures $ 61,856,595 $ 7,423,367 $ 11,407,083 $ 15,923,397 Excess (deficiency) of revenues over expenditures $ (3,024,909) $ 7,419,727 $ (178,221) $ (5,763,224) Other Financing sources (Uses): Proceeds of general obligatan bonds $ -- $ -- $ -- $ 21,570,000 Proceeds of certificates of obligation -- -- -- -- Operating transfers - in 3,622,196 1,553,961 1,467,479 1,472,569 Operating transfers - out (1,430,380) (7,738,774) -- -- Total other financing sources (uses) $ 2,191,816 $ (6,184,813) $ 1,467,479 $ 23,042,569 Excess (deficiency) of revenues and other sources over expenditures and other uses $ (833,093) $ 1,234,914 $ 1,289,258 $ 17,279,345 Fund Balance at beginning of year: As previously reported $ 5,952,792 $ 3,005,263 $ 10,773,260 $ 32,785,336 Accumulated effect due to accounting change (Note 12) 271,352 -- (10,460,039) As Restated $ 6,224,144 $ 3,005,263 $ 10,773,260 $ 22,325,297 Fund Balance at end of year $__5,391x051 2__4.2402177 $_12a062a512 2_293604,642 5 Fiduciary Fund Proprietary Fund Types Types Account Groups Internal Trust & General General Totals Enterprise Service Agency Fixed Long -Term (Memorandum Only) Funds Funds Funds Assets Obligations 1983 1982 $ 1,805,173 $ 1,260,184 $ 371,817 $ -- $ $ 6,306,798 $ 4,405,416 1,119,244 169,009 1,065,379 -- 3,094,748 3,042,617 1,137,496 1,137,496 264,871 -- -- -- 690,052 711,754 - - -- 2,008,337 2,101,652 1,988,166 1,877,348 87,674 387,957 7,011,808 2,505,439 -- -- 526,363 526,363 267,543 -- -- -- -- 13,311 - - 3,573,968 6,631,429 2,426,116 -- -- -- 228,054 1,492,682 -- -- 1,492,682 1,681,112 - - 990,800 3,890,171 45,997,000 -- 45,997,000 47,501,000 -- 89,135,000 89,135,000 73,115,000 -- -- 6,620,000 6,620,000 7,070,000 -- -- -- 6,824,279 6,824,279 5,528,105 43,297,017 -- -- -- 43,297,017 36,261,394 28,824 709,622 1,000 -- 739,446 739,446 591,125 591,125 598,833 1,431,229 1,431,229 1,431,229 69,277 69,277 2,441,252 2,441,252 2,023,725 39,253 39,253 -- 9100,189,424 $ 3,363,985 $ 7,934,821 $ -- $102,579,279 $227,168,706 $195,723,302 $ 75,144,517 $ 506,412 $ $ -- $ $ 75,650,929 $ 67,657,008 __ -- 184,191,627 184,191,627 171,403,202 58,454,434 -- -- 58,454,434 55,170,755 466,508 -- 466,508 327,390 6,678 6,678 -- 5,610,880 -- 5,610,880 3,435,528 4,087,754 -- 4,087,754 3,960,110 4,854,827 2,220,122 -- 7,074,949 5,352,743 1,933,382 1,519,008 95,188 95,188 124,839 143,966 -- 3,547,003 1,993,042 -- 14,114,147 13,951,759 1,498,489 1,498,489 822,968 657.991 657,991 569,192 801,365 801,365 629,546 -- 41,483,829 .24,625,001 $148,618,920 $ 2,733,212 $ 2,957,845 $184,191,627 $ -- $399,799,992 $351,656,406 215§e§2ha VI 1e.6y027al2j 2.12As2a666 21842.191a627 21021579a279 a26A9681698 Sj54L3794708 4 CITY OF CORPUS CHRISTI, TEXAS Exhibit 1-A (Continued) COMBINED BALANCE SHEET ALL FUND TYPES AND ACCOUNT GROUPS YEAR ENDED JULY 31, 1983 Governmental Fund Types Special Debt Capital General Revenue Service Projects Fund Funds Fund Fund LIABILITIES AND FUND EQUITY Accounts payable $ 1,175,621 $ 207,438 $ $ 1,486,565 Other accrued expenses 705,227 35,889 Estimated liability for self-insurance claims (Note 13) Matured bonds and interest coupons not presented for payment -- -- 690,052 -- Deposits 57,624 35,691 -- -- Due to other funds 885,532 3,139,210 -- 634,087 Due to other Governmental Agencies -- -- -- Due to restricted funds -- -- -- Deferred revenues: Taxes (Note 3) 1,868,271 1,189,190 Notes receivable -- -- LoVaca settlement trust -- -- Other 990,800 Revenue bonds payable (Note 7) -- General obligation bonds payable (Note 7) -- Certificates of Obligation payable (Note 7) Accumulated unpaid compensated absences Notes payable (Note 10) Advances from other funds Liabilities (payable from restricted assets): Accounts payable Unpresented bonds and interest coupons Interest payable Future expansion Due to other funds Total liabilities $ 4,692,275 $ 3,418,228 $ 1,879,242 $ 3,111,452 Fund Equity: Contributed capital $ $ $ Investment in General Fixed Assets Retained Earnings: Investment in fixed assets Reserved for operations and improvements Reserved for improvements and contingency Reserved for future construction Reserved for bond interest and redemption Unreserved Fund Balance: Reserved for encumbrances 1,022,901 910,481 Reserved for advances to other funds 95,188 -- Reserved for inventory 124,839 -- Reserved for loans -- 3,547,003 -- Reserved for specific projects -- 14,114,147 Reserved for Trust Fund -- -- Reserved for Retirement Fund -- Reserved for Deferred Compensation Plan Fund -- -- -- -- Unreserved (deficit) 4,148,123 (217,307) 12,062,518 25,490,495 Total fund equity $ 5,391,051 $ 4,240,177 $ 12,062,518 $ 39,604,642 TOTAL LIABILITIES AND FUND EQUITY 2.10083d326 1.11.941S760 9.42iZ 1224 The notes to the financial statements are an integral part of this statement. 3 Fiduciary Fund Proprietary Fund Types Types Account Groups Internal Trust 6 General General Totals Enterprise Service Agency Fixed Long -Term (Memorandum Only) Funds Funds Funds Assets Obligations 1983 1982 $ 1,816,652 $ (1,417,211) $ 2,009,730 $ $ 8,238,387 $ 6,748,164 - - -- -- 691,518 714,676 852,000 3,123,000 3,783,161 58,593,161 40,560,868 -- -- -- 3,007,455 1,966,048 6,866,572 472,971 274,466 8,994,329 6,685,222 -- -- -- 3,057,461 2,426,116 - - -- 3,573,968 3,573,968 2,942,625 -- -- -- 5,638 -- -- -- -- 1,050,233 985,504 1,113.187 1,118,015 750,661 7,011,808 2,504,439 198,208 49,047 403,680 4,931,518 3,544,739 611,017 1,880,363 -- 2,616,219 2,209,502 - - 240,265 -- 252,454 441,311 644,258 -- 739,446 739,446 67.582,367 -- -- 67,582,367 60,736,394 1,492,682 -- 1,492,682 1,681,112 2,300 97,000 99,300 -- 1,283,244 -- 1,283,244 1,177,663 1,454,459 1,454,459 1,455,229 17,296,000 -- -- 17,296,000 21,479,000 340,288 -- -- -- 340,288 2,351,441 147,255,110 630,747 184,191,627 -- 332,077.484 300,317,104 -- -- -- 12,062,518 12,062,518 10,773.259 90,516,761 90,516,761 74,939.846 i2i841086344 1„66097;197 1.104892a666 51846191;627 2e02a5794279 kaa260.2 L547a379628 2 Exhibit 1-A ASSETS CITY OF CORPUS CHRISTI, TEXAS COMBINED BALANCE SHEET ALL FUND TYPES AND ACCOUNT GROUPS YEAR ENDED JULY 31, 1983 Governmental Fund Types Special Debt Capital General Revenue Service Project Fund Funds Fund Fund Cash $ 3,225,875 $ 1,362,544 $ 548 $ 1,240,249 Cash with paying agent -- -- 691,518 -- Investments, at cost 1,300,000 1,391,000 12,000,000 36,144,000 Receivables (net, where applicable, of allowance for uncollectibles): Notes -- 3,007.455 -- -- Accounts 1,004,339 371,692 -- 4,289 Taxes (Note 3) 1,868,271 -- 1,189,190 -- Taxes - other than taxing agency -- -- -- -- Employees 5,638 -- -- -- Certificates of special assessment - net -- -- -- 1,050,233 Due from other funds 2,160,232 17,184 42,996 1,809,533 Due from other Governmental Agencies (Note 4) 286,755 1,508,530 17,508 2,467,790 Inventory 124,839 -- -- -- Prepaid expenses, deposits and other assets 12,189 -- -- -- Advances to other funds 95,188 Water rights (Note 10) -- Equity in LoVaca settlement trust Other assets Restricted assets: Cash Cash with paying agent Investments, at cost Accounts and installment contracts receivable Fixed assets (net of accumulated depreciation) Amount available in Debt Service Fund Amount to be provided for retirement of general long-term debt TOTAL ASSETS S1g103083y326SAei7y658j405 SA�13y941y760 Sy 42L716y094 The notes to the financial statements are an integral part of this statement. Fox &Company REPORT OF CERTIFIED PUBLIC ACCOUNTANTS The Honorable Mayor and Council Members City of Corpus Christi, Texas Certified Public Accountants We have examined the combined financial statements of the City of Corpus Christi, Texas at and for the year ended July 31, 1983, as listed in the table of contents. Our examination was made in accordance with generally accepted auditing standards and, accordingly, included such tests of the accounting records and such other auditing procedures as we considered necessary in the circumstances. In our opinion, the combined financial statements referred to above present fairly the financial position of the City of Corpus Christi, Texas at July 31, 1983, and the results of its operations and the changes in financial position of its proprietary fund types for the year then ended, in conformity with generally accepted accounting principles applied on a basis consistent with that of the preceding year after giving retroactive effect to the changes, with which we concur, discussed in Note 12. 4.7c Corpus Christi, Texas January 27, 1984 A member of Fox Moore International [THIS PAGE INTENTIONALLY LEFT BLANK] TRUST AND AGENCY FUNDS This group consists of trust funds used to account for assets and revenues received and held by the City acting in the capacity of trustee or custodian. All of the City's Trust Funds are Expendable Trust Funds. Trust funds include Trust Fund (assets that are received and not accounted for in any other fund), Corpus • Christi Retirement Plan Fund and the Corpus Christi Deferred Compensation Plan Fund. Agency Funds are also used to account for assets held by the City as an agent for individuals, private organizations, other governments and/or other funds. Agency Funds include the Tax Clearing Fund, Payroll Clearing Fund, Vouchers Payable Fund, Utilities Deposit Fund, Community Development Block Grant Escrow Fund and Coastal Bend Consortium Fund. INDEPENDENT AUDIT The City Charter requires an annual audit of the City's financial statements by an independent Certified Public Accountant. This requirement has been complied with and the auditor's report has been included. CERTIFICATE OF CONFORMANCE In 1945 the Municipal Finance Officers Association of the United States and Canada (MFOA) established the Certificate of Conformance in Financial Reporting Program and commenced the evaluation of the quality of governmental annual financial reports. Over the intervening years, the Certificate of Conformance has become accepted as the highest form of recognition in the area of governmental financial reporting. It is believed that the July 31, 1983 Comprehensive Annual Financial Report meets the Certificate of Conformance Program standards and accordingly the report has been submitted to the Certificate of Conformance Program Special Review Committee for evaluation. ACKNOWLEDGEMENTS The preparation of this report could not be accomplished without the efficient and dedicated services of the entire staff of the Finance Department and the competent services of the independent accountants, Fox & Company. I express my appreciation to all members of the Finance Department who assisted and contributed to its preparation and especial appreciation to Debra J. Andrews, CPA, Assistant Director of Finance. In addition, I express my appreciation to the Mayor, City Council and the City Manager for the interest and support in planning and conducting the financial affairs of the City in a responsible and progressive manner. Respectfully submitted, Charles J.aley, CPA Director of Finance ix INTERNAL SERVICE FUNDS Internal service Funds are established to account for the financing of goods or services provided by one deaprtment or agency of the City to another. The City operates four funds on this basis: the Stores Fund, Maintenance Services Fund, Data Processing Fund and Insurance Fund. Stores Fund The Stores Fund operates the Central Warehouse, Stationery Stores and Messenger Service. Operating revenues totaled $2,657,471 and net income was $16,208. In January, 1983, a serious fire in the Warehouse destroyed a considerable amount of stock. Proven losses in excess of $80,000 were recovered from the insurance carrier. Maintenance Services Fund The Maintenance Services Fund operates the Service Station, Mechanical Repairs, Parts Room, Radio Shop and Building Maintenance activities. Revenues totaled $3,964,271 for a net loss of $15,097. In February 1983, a contract was let in the amount of $263,186 to construct a heavy equipment maintenance building financed from bond funds. Data Processing Fund The Data Processing Fund provides services to all City departments. The City recognizes that an effective data processing system is essential to its management information needs and in May 1983 the City authorized a five year lease -purchase agreement for a new central data processing unit and supporting equipment in the amount of $1,403,515. Operating revenues totaled $1,929,700 and net income was $21,038. Insurance Fund During 1983 the City initiated a comprehensive Risk Management Program. The goal of this program is to protect the City's financial assets from losses due to property or casualty exposures through loss prevention, claim management and a program of combined risk retention and transfer. Among the major accomplishments of the program are the centralization of all insurance and claim management functions, the acquisition of a self-insured retention and insurance package with financial exposure limited by high limit excess insurance coverage, and the revitalization of the City's employee safety program. The effectiveness of the program is due largely to the close working relationship between the Finance, Legal, Personnel and Safety and Risk Management Departments. Net income for 1982-83 was $80,998. Unreserved retained earnings at July 31, 1983 were $1,944,638. viii Wastewater System (Continued) Comparative data for the past two fiscal years are presented below: Year Ended Year Ended July 31, 1983 July 31, 1982 Operating revenues $ 8,304,845 $ 7,187,235 Operating income $ 1,020,161 $ 1,036,948 Net Revenue Available for Debt Service $ 2,432,535 $ 2,122,635 Highest Annual Debt Service $ 157,419 $ 157,419 Coverage (income available for Debt Service divided by highest annual Debt Service) 15.45 13.02 International Airport Corpus Christi International Airport has 2,230 acres with two fully instrumented main runways of 7,500 feet and 6,100 feet. Enplaning and deplaning passengers totaled 804,188 compared with 821,516 for the previous fiscal year. There are 53 scheduled departures and arrivals daily. The Airport Fund experienced a net loss of $349,208. Transit Fund The City Transit System operates 42 transit, 4 charter and 9 paratransit vehicles and served an estimated 1,469,259 passengers in 1982-83. Operating revenues amounted to $1,762,835. The Transit System experienced a net loss of $218,059. AID Ambulance Fund The AID Ambulance Service is an advanced life support system and each ambulance is staffed with one paramedic and one emergency medical technician. The AID Ambu- lance Service provides emergency treatment and transportation to the hospital of the patient's choice. A primary function of the service is to provide the emer- gency treatment necessary to stabilize the patient's condition prior to transport- ing. Providing definitive prehospital coronary care is included in emergency treatment services. The system is a cooperative endeavor of the City and the Nueces County Hospital District. The City is responsible for the operation of the ambulances and the communications/dispatching system. The District is responsible for training ambulance personnel and procuring medical supplies. The AID Ambu- lance Fund experienced a net loss of $51,102. Corpus Christi Golf Center The Corpus Christi Golf Center operates a 27 hole course. There were 67,329 rounds of golf played at the Golf Center during 1982-83. Net income of $113,792 was up 17.6% over 1981-82. vii Water System (Continued) Comparative data for the last two fiscal years are presented below: Year Ended Year Ended July 31, 1983 July 31, 1982 Operating revenues $ 19,584,396 $ 15,035,299 Operating income $ 5,971,520 $ 3,563,145 Net Revenue Available for Debt Service $ 6,464,604 $ 5,356,207 Average Annual Debt Service $ 3,826,330 $ 3,883,574 Coverage (income available for Debt Service divided by average annual Debt Service) Gas System 1.69 1.38 The financial integrity of the Gas System was strengthened considerably when, on September 1, 1982, the City changed from charging a fixed rate for the cost of gas to passing through to the consumer the actual cost of gas to the City. As the cost of gas represents 60-70% of the cost of service to the consumer, the pass through provision will protect the system from unexpected and sharp increases in the cost of natural gas to the City. This change in the billing procedure result- ed in an operating income of $263,603 as against an operating loss of $531,592 for 1981-82. Comparative data for the past two fiscal years are presented in the following tabulation: Year Ended Year Ended July 31, 1983 July 31, 1982 Operating revenues $ 29,631,745 $ 26,903,632 Operating income 263,603 (531,592) Income Before Operating Transfer 812,351 169,999 Transfer to Debt Service 231,354 241,200 Wastewater System The Wastewater Disposal System consists of approximately 1,027 miles of sanitary sewer mains and seven treatment plants. Sanitary sewer service charges are based on water consumption. Rates have been maintained at an adequate level and the system completed its third straight year of profitable operations. vi GENERAL FIXED ASSETS The general fixed assets of the City are those assets used in the performance of general governmental functions and exclude the fixed assets of Enterprise and Internal Service Funds. As of July 31, 1983, the general fixed assets of the City amounted to $184,191,627. This amount represents the original cost of the assets if constructed or purchased by the City, or if donated, estimated market value as of the date of donation. This amount represents the original recorded cost of the assets and is considerably less than their present value. Depreciation of general fixed assets is not recognized in the City's accounting system. ENTERPRISE FUNDS The Enterprise Funds are used to account for activities which render services on a fee for service basis. These funds are expected to pay their own way. Funds operated on this basis include the water, gas, wastewater and transit systems, the airport, AID ambulance program and the Corus Christi golf center. The City has made restatements and reclassifications in the Enterprise Funds in accordance with generally accepted accounting principles. The effect of these changes for each enterprise fund is as follows: Effect on Net Income Year Ended July 31, 1983 Water System Gas System Wastewater Disposal System Airport Fund Transit System AID Ambulance Fund Corpus Christi Golf Center Fund $ (1,425,895) 51,381 170,205 (9,441) 1,964,061 899,442 (2,193) 1116472560 Effect on Retained Earnings July 31, 1982 $ (1,558,534) 834,013 (16,803,828) (8,649) 8,934,423 4,638,066 (4,532) $_.(319691041) The restatements for the Transit System and the AID Ambulance Fund are primarily restatements of contributed capital to retained earnings of UMTA operating grants and City contributions for operations and have no effect on the financial statements as a whole. The Restatement for Wastewater Disposal System is primarily a restatement of retained earnings to contributed capital for Bond Fund contributions and has no significant effect on the financial statements as a whole. Water System Corpus Christi obtains its water from the Nueces River with a watershed of some 16,000 square miles. Wesley Seale Dam has a reservoir capacity of 272,000 acre feet. In addition, Choke Canyon Dam, on the Frio River near Three Rivers, was completed in 1983 and has a reservoir capacity of 700,000 acre feet. Project costs for Choke Canyon Dam amounted to $67,582,367 of which the City has a remaining liability of $43,107,367 to the U. S. Bureau of Reclamation. v Outstanding general obligation bonds and certificates of obligation at July 31, 1983 totaled $95,755,000 of which $36,421,268 is considered self-supporting. The remainder of $59,333,732 is considered net direct tax supported debt. The City sold $10,525,000 of general improvement bonds in October, 1982, at a net interest cost of 8.5501% and $11,045,000 in May, 1983 at a net interest cost of 8.5578%. On October 1, 1983, $470,000 of certificates of obligation were redeemed and retired. In October 1982, Moody's Investor's Service raised the rating on general obli- gation bonds to Aa. The following tabulation presents the City's financial rating on all bonds at July 31, 1983: Moody's Investor's Service Standard & Poor's General Obligation Bonds Aa AA First Mortgage Water Revenue Bonds Al A Junior Lien Water Revenue Bonds Not Requested Not Requested Sewer Revenue Bonds A A CASH MANAGEMENT Cash temporarily idle was invested in U. S. Treasury Bills, bank certificates of deposit and bank repurchase agreements. At July 31, 1983, the City had $73,803,892 invested in Certificates of Deposit. Interest earnings for the year totaled $10,532,570 which is equivalent to a tax rate of 22.65. CAPITAL PROJECT FUNDS City voters have supported an aggressive capital improvements program funded in part through general obligation debt. On February 20, 1982, the voters approved an authorization of $45,464,000 of general improvement bonds. As of July 31, 1983, the City was within schedule in implementing planned capital improvements as approved in the referendums. Major projects closed during 1982-83 were: Convention Center Street Construction Sanitary Sewers Storm Sewers $ 1,320,286 6,059,916 1,569,409 448,792 Proceeds of general obligation bonds are accounted for in the Capital Projects Funds until improvement projects are closed. Closed projects are capitalized in the General Fixed Assets Group and Proprietary Funds. iv 1 Expenditures and Transfers Out Expenditures and transfers out totaled $89,856,199, an increase of 12.0% over 1981-82. The following tabulation shows the purposes for which the money was spent and changes in levels of expenditures over the preceding year: (In Thousands of Dollars) Increase Percent (Decrease) Function Amount Of Total From 1982 General Government $ 12,434 13.8% $ 914 Public Safety 26,570 29.6% 3,153 Streets 6,407 7.1% 768 Sanitation 4,789 5.3% 11 Health 3,317 3.7% 70 Community Enrichment 11,193 12.5% 1,338 Insurance 2,962 3.3% (91) Miscellaneous 196 .2% 10 Capital Projects 1,412 1.6% 520 Debt Service 11,407 12.7% 65 Transfers Out 9,169 10.2% 2,885 Total 8_89,856 100.0% 892.643 Fund Balance During 1982-83, actual sales tax receipts were about $3,000,000 below budgeted expectations. Prompt management and Council action in applying strict budgetary controls minimized the effect of the reduced revenues and the City ended with a healthy General Fund balance of $5,391,051, of which $4,148,123 is unreserved and available for appropriation. DEBT ADMINISTRATION Maintaining a fund balance of not less than 75% of the highest annual debt service is generally considered an acceptable debt management goal and provides a funded reserve for payment of principal and interest if economic conditions adversely affect tax collections. The fund balance of $12,062,518 in the Debt Service Fund is 93% of the highest annual principal and interest requirements. The ratio of net bonded debt to assessed valuation and the amount of bonded debt per capita are presented below: Net General Obligation Debt $ 59,333,732 Overlapping Debt 46,301,150 Total direct bonded debt 81052.634,882 iii Ratio of Debt 1-1-83 Market Value 1.17% 0.90% 2.07% Debt Per Capita (1980 Census) $ 255.60 195.46 8 455.06 GENERAL GOVERNMENTAL FUNCTIONS General governmental functions include the General Fund, Special Revenue Funds and Debt Service Funds. Combined revenues and transfers in exceeded expenditures and transfers out by $1,691,079. Revenues and Operating Transfers In Local economic conditions experienced a downturn during the fiscal year, but revenues held firm and in fact increased by $6,390,000 over the previous fiscal year. Revenues and transfers in totaled $91,547,278, an increase of $7,989,000 over fiscal year 1981-82. The revenues from various sources and changes from the previous year are shown in the following comparative tabulation: Revenue Source (In Thousands of Dollars) Increase Percent (Decrease) Amount Of Total From 1982 Property Taxes $ 26,419 28.8% $ 2,714 City Sales Tax 15,025 16.4% (494) Other Taxes 11,041 12.1% 1,401 Licenses and Permits 1,134 1.2% 209 Intergovernmental Revenue 810 .9% 35 Charges for Services 9,805 10.7% 1,180 Fines and Forfeits 1,638 1.8% 160 Federal Grants 8,293 9.1% (255) Revenue Sharing 3,712 4.0% 198 Other Revenue 7,027 7.7% 1,242 Transfers In 6,643 7.3% 1,599 Total L91L547 100.0% L7,989 Property Taxes The City Charter was amended April 5, 1980 and fixed a minimum tax rate of 68c per $100 of assessed valuation for all purposes, including debt service. The tax rate for 1982-83 was well within this ceiling as the following tabulation shows: Purpose General Fund Debt Service Total Tax Rate 1982-83 1981-82 1980-81 $0.3467 $0.38 $0.42 0.2213 0.24 0.26 X50.5680 P_62 P_68 Assessed valuations on January 1, 1982, at 100% of market value totaled $4.67 billion, a healthy 26.05 increase over the January 1, 1981 assessed values. ii Corpus Christi remains the focal point for the distribution of agricultural, petrochemical and bulk products throughout the world. The City's diver- sified economy — a blend of tourism, Port industries, oil & gas exploration and production, agriculture, Naval Air Station activities and light industry — provides a stable base for constant expansion. The City is home to one of the newest and finest convention centers in the State. The community provides museums, theatres, parks, symphonies, art exhibits and ballets. All of these items combine to enhance the quality of life and provide a lifestyle which compares favorably with any city in the world.