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Home My WebLink About1985-08-28 Special Called Meeting• • MINUTES OF THE SPECIAL CALLED MEETING OF LA PORTE CITY COUNCIL AUGUST 28, 1985 1. The meeting was called to order by Mayor Malone at 6:04 P.M. Members of City Council Present: Mayor Norman Malone, Councilpersons Delbert Walker, John Lloyd, Ed Matuszak, Betty Waters, Lindsay Pfeiffer, Deotis Gay, B. Don Skelton, Linda Westergren Members of Citv Council Absent: None Members of Citv Staff Present: City Manager Jack Owen, City Attorney Knox Askins, City Secretary Cherie Black, Assistant City Manager Richard Hare, Chief of Police Charles Smith, Director of Community Development John Joerns, Director of Public Works Jerry Hodge, Administrative Assistant Olivia Moeller Others Present: Lewis McLain, Lewis McLain & Associates; Neil Bishop and William Metzger, Turner Collie & Braden; David Fetzer and Pete Fisher, Moroney & Beissner, Inc.; Tom Keilman, Finance Officer; Elaine Bonner, Police Administrative Assistant; several realtors and home builders; 4 citizens The Mayor stated that the Workshop item, Item 5 of the agenda, would be addressed first, due to representatives of Moroney & Beissner not yet being present in the Council chambers. tem Discuss and consider water rate study and capital recovery fees recommendation - Lewis McLain of Lewis McLain & Associates was present and presented a report on this item. A copy of the report is included in these minutes as backup material. Mr. Bill Metzger of Turner Collie & Braden answered questions from Council regarding capital recovery fees and user charges. Mr. Eddie Gray, Mr. Alan Bauer and Mr. Decker McKim spoke in opposition to the proposed fees. 2. Council considered a resolution in opposition to the Presidents tax proposal for municipal bonds. • • Minutes, Special Called Meeting, La Porte City Council August 28, 1985, Page 2 Mr. David Fetzer of Moroney, Beissner & Co., Inc., reviewed the resolution for Council. The City Attorney read: RESOLUTION 85-12 - RESOLUTION 'IN OPPOSITION TO THE PRESIDENT'S TAX PROPOSALS FOR MUNICIPAL BONDS. rjgtion was made by Councilpersop Skelton to adopt Resolution $5 12 as read by the City Attorney. Second by Councilperson Waters. The motion carried, 6 ayes and 0 nays. (Councilpersons Lloyd, Gay and Westergren were away from the Council table.) Ayes: Councilpersons Walker, Matuszak, Waters, Pfeiffer, Skelton and Mayor Malone Nays: None 3. Council considered extension of financial advisor's contract with Moroney, Beissner & Co., Inc. Motion was made by Councilperson Waters to approve the gxtens~on of the contract with Moroney Beissner & Co., Inc.. ~o August 26, 1990. Second by Councilperson Matuszak. The motion carried, 6 ayes and 0 nays. (Councilpersons Lloyd, Gay and Westergren were away from the Council table.) Ayes: Councilpersons Walker, Matuszak, Waters, Pfeiffer, Skelton and Mayor Malone Nays: None 4. Council considered approval of the official notice of sale and official statement to be used in connection with the City's five million dollar General Obligation Bonds, Series 1985, and six million dollar Waterworks and Sewer System Revenue Bonds, Series 1985. Mr. Fetzer reviewed the above item. Motion was made by Councilperson Lloyd to approve the notice of sale and official statement to be used in connection with the bond sale. Second by Councilperson Gay. The motion carried, 9 ayes and 0 nays. • • Minutes, Special Called Meeting, La Porte City Council August 28, 1985, Page 3 Ayes: Councilpersons Walker, Lloyd, Matuszak, Waters, Pfeiffer, Gay, Skelton, Westergren and Mayor Malone Nays: None 5. Item 5 had been addressed at the beginning of the meeting. 6. Emergency Addendum: Budget Workshop session. The Mayor declared a 15 minute recess before addressing this item. The meeting was recessed at 8:25 P.M. and reconvened at 8:40 P.M. The City Manager asked that Council set September 16 for a public hearing on the budget. Council agreed to this date. 7. The City Manager requested an executive session on personnel. Council adjourned into executive session at 8:45 P.M. and returned to the Council table at 10:49 P.M. 8. There being no further business to come before the Council, the meeting was duly adjourned at 10:50 P.M. Respectfully su mitted: Cherie Black, City Secretary Passed & Approved this the 9th day of September, 1985 Nor an Malone, Mayor • Lewis F. McLain, ,Jr. Administrative & Fiscal Consulting Services 2300 Highland Village Road, Suite 240 Lewisville, Texas 75067 August 22, 1985 (2141221-7591 Mr. Jack Owen, City Manager 604 W. Fairmont Parkway La Porte, Texas 77571 Dear Jack: Pursuant to your request, the summary schedules (pages 1, 2,&3) of my report presented April 23, 1985 have been revised and are submitted herein. The following assumptions are incorporated into the new schedules: 1) The 1985-86 revenues and expenditures are based on the proposed budget under consideration by the City Council. The projected revenue growth rates for 1986-87 and 1987-88 due to new customers have been changed from 6x to 3~. This is to reflect the slowdown in growth presently being experienced in La Porte and surrounding areas. Most of the operating costs projections are substantially the same since most of these costs are fixed or semi-fixed and do not fluctuate significantly with minor variations in growth. 2) There were three kinds of debt service in the original study: existing revenue bond debt service, existing general obligation bond debt (mostly associated with annexations) which was for utility purposes and to be supported by water and sewer rates, and the new debt service requirements which were assumed to be a combination tax and revenue bond with the intent to fund from capital recovery fees and water and sewer revenues. There have been significant changes in assumptions since the study was conducted. First, the existing revenue bonds were defeased and will no longer exist due to present funding plans which call for the new debt requirements to be in the form of revenue bonds. The revenue bonds have the utility revenue stream pledged instead of any tax base pledge. In addition, the revenue bonds require a reserve transfer which amounts to X442,500 in the current fiscal year and $221,250 next year, X303,250 the following year and X82,000 in the last year of the study period. It is planned that capital recovery fees will also be used to help retire the revenue bonds. However, the estimate has been reduced significantly due to construction slowdowns and because the per lot fees are less than originally anticipated. The original study incorporated approximately X685,000 of capital recovery fees beginning in 1985-86. Presently, there are no fees anticipated to be usable in 1985-86 and only X399,600 in 1986-87 and thereafter. This is based on 400 equivalent living units of construction which approximates the construction levels for last year and the year before. Lastly, general obligation bonds issued for utility purposes were shown as fully funded by the utility fund in the original study. The revised schedules now reflect the current thoughts, consistent with the proposed budget under consideration, which anticipates X348,850 of the G. 0. debt to be funded from tax sources in 1985-86 and a slightly lower amount thereafter. 3) The rate determination factors have been slightly modified to be in agreement with the proposed revenue bond ordinance and to be more informative. Days In Working Capital and the Average Working Capital Reserve are show as before. The working capital level will be decreased significantly due to the early funding of the debt reserve requirement. The target of 60 to 120 days was used to determine the appropriate level. In addition, a Financial Coverage Ratio was used to measure how well the utility fund stands on its on in each year of the planning period. This ratio is related to the changes in working capital and is ideally above 1.0 times. When this ratio is less than 1.0, the working capital level decreases. The reverse is true when the ratio is above 1.0 times. Since the working capital level is projected to decrease by X296,622 this fiscal year and $399,199 next year, it is important to look at the financial plan from the multi-year perspective. Since the working capital balance is projected to decrease to X1,038,556 at the end of 1985-86, X695,820 less than at the end of 1983-84, the next two years become highlighted to show how the trend is to be reversed. In essence, the financial plan provides for the working capital levels to be lowered in 1985-86, to remain constant in 1986-87 and to begin increasing in 1987-88. Since the City has the good fortune to go into a major capital expansion program with significant reserves, rates can be projected to show what it will take to cause them to stabilize at a responsible level. THE BOTTOti LINE SEWER RATES. The sewer rates for 1985-86 have been computed to increase 18.30, the same as shown in the original study. The Financial Coverage Ratio in the original study was approximately 1.0 times. However, the same Ratio is .90 times in the revised schedule, reflecting a decrease in working capital of $208,397. The sewer schedule is submitted herein to show the financial results of the rates at the same level as originally presented. This rate increase level would generate enough revenues to exceed the Legal Debt Coverage Ratio and is possible only because the City is able to absorb the revenue difference in the reserves. The revenues would have to be increased by 32.57 to prevent a decrease in working capital reserves related to sewer. The financial plan further shows that it will take an additional 7.69 rate increase in 1986-87 to stabilize the working capital reserves. There was no increase projected for 1986-87 in the original study. The differences are related to those changes outlined in the first section of this letter. Based on the stated assumptions now and in the previous study, an increase in the sewer rate is not projected for 1987-88. By the last year of the planning period, all obligations will be met and reserves will begin to increase again. The large revenue bond reserve requirement related to the present X6,000,000 issue will be funded at that time, providing for a re-building of reserves. WATER RATES. The original study indicated that there would not be a need for a rate increase for any of the three years in the planning period. The new assumptions will alter that scenario considerably. The revised rate model still shows no increase required in 1985-86. However, the working capital balance now reflects a decrease of $190,803 instead of an increase of X140,467 as shown previously. Again, this is not ideal and is possible only because of the adequate reserves maintained by the City. It would take an increase of 12.38 to prevent the working capital reserves from decreasing. Although it is not desirable to see reserves decreased, the financial plan reflects a respectable level. The last two years of the planning period are considerably different than was shown in the original study. To maintain the same working capital balances in those years after significant decreases in 1984-85 and 1985-86, the water rates will have to be raised by 21.18 in 1986-87 and by another 8.5~ in 1987-88. CONCLUSION The City can still present a responsible financial plan to the bond rating agencies and to the public even though several changes have been made. It needs to be emphasized that growth assumptions have been reduced to a level which matches current experience. The level of capital recovery fees used in the study is lower, but the importance of these fees as a financing alternative is no less significant. The ratepayer is paying 100 of the new debt cost in 1985-86 and approximately 62~ - 65~ in the following two years under the present scenario. Even so, the level of construction required to produce the reduced level of capital recovery fees is considerably higher than is now the case. Without these fees, the water rate increase will be 7.2x higher and the sewer rate increase will be 13.6 higher. The entire water and sewer rate structure as well as the capital recovery fee structure will need to be examined annually. It is my recommendation that the Council consider these increases as proposed. They represent a good balance of the dual objectives of keeping rates low and maintaining a financially healthy utility fund. I will be happy to discuss these schedules with you, your staff, and the Council. Sincerely, s ~~~~ CLb Lewis F . I'1cLain, Jr . ~ $~ ~~ WS-R/E Water Study 21-Aug-B5 5u®mary of Revenues & Expenditures 9 RUN # UTILITY FUND 1982-83 1983-B4 1484-85 1985-8b 1986-B7 1987-88 - - ACCOUNT - ------------------- ACTUAL -------- ACTUAL -------- BUDGET -------- PLANNED -------- PLANNED -------- PLANNED -------- --- --- REVENUES: Water Sales - Existing 889,102 1,560,767 1,496,444 1,541,331 0 1,567,511 336 284 1,635,205 513 882 Water Increase 0 0 0 , , Seger Sales - Existing 890,131 1,418,804 1,411,383 1,459,904 7 3 1,503,702 4 1 343 1,548,813 642 423 Seger Increase 0 0 0 26 ,16 1 , , Water Line Charges 24,288 11,211 10,000 10,300 10,609 10,927 Sewer Line Charges 21,036 30,670 28,000 24,000 24,720 25,462 Water Taps 79,139 101,645 135,000 35,000 36,050 37,132 Sewer Taps 24,008 14,813 10,000 8,500 8,755 9,018 Water Reconnect Gharges 1,053 10,205 8,000 11,000 11,330 li,b10 Water Meter Sales 0 4,986 2,500 2,500 2,515 2,652 5eaer Inspection Fees 983 3,990 500 704 0 0 Industrial W. Surcharges 26,671 48,071 60,000 47,000 48,410 49,862 Water Penalties 31,746 62,446 26,500 13,000 13,390 13,792 Interest Income 65,711 111,732 43,000 43,000 44,290 45,619 Fiscel laneous Income 16,140 16,743 2,900 3,550 0 0 Probable Capital Recovery Fees 0 --------- 0 --------- 0 --------- 0 --------- 399,600 --------- 399,600 --------- } TOTAL REVENUES s 2,081,013 --------- 3,396,090 --------- 3,240,221 --------- 3,466,955 --------- 4,438,595 --------- 4,721,274 --------- EXPENDITURES: Personnel Services 185,936 1,001,973 1,128,146 1,140,392 1,405,293 1,565,709 Materials b Supplies 99,891 123,064 87,883 Bb,5b5 114,636 187,847 Maintenance 143,758 133,666 254,422 247,427 297,143 313,078 Services 311,D52 310,505 514,459 479,598 616,743 692,394 Increase Dperating Exp. 0 0 0 0 0 0 Capital Dutlay 56,718 90,520 122,269 83,420 18,012 83,609 Capital Projects 100,000 245,048 316,708 100,OD0 100,000 100,000 Miscellaneous D 48,518 0 0 0 0 Chngs in Rest. Assets (31,4541 0 0 4 0 Bad Debt Expense 78,443 57,886 89,925 42,622 95,401 98,263 8& A Charge 60,961 132,410 0 t1) 0 0 Debt Service - Principal 25,000 25,040 25,000 0 0 0 Debt Service - Interest 5,075 4,163 3,237 0 0 0 New Deht - Principal 0 0 0 300,000 300,000 304,004 New Debt - Interest D 0 D 585,000 555,150 668,250 Trans. to 6D - Principal 176,740 176,140 313,091 314,491 375,091 387,091 Trans. to BD - Interest 130,850 130,850 534,376 504,634 414,860 444,616 Reserve Requirement 0 0 442,500 221,250 303,254 82,000 f TOTAL CD5TS $ 1,914,490 2,508,893 3,891,516 4,215,003 4,116,179 4,922,913 --------- --------- --------- --------- --------- --------- TRANSFER IN FRDN GENERAL FUND: CNAN6E IN WDRKIN6 CAPITAL BE6INNIN6 WDRKIN6 CAPITAL ENDING WORKING CAPITAL WDRKIN6 CAP. COMPONENTS: Cash k Investments Accounts Receivable Accrued Interest Rec. Inventory Due From Other funds Accounts Payable Due to Dther Funds Advances Fro® Customers ENDING WDRKIN6 CAPITAL 0 0 360,661 348,850 331,584 336,913 lOb,523 887,197 t24b,b221 (399,199? (01 141,274 740,656 847,179 1,734,376 847,179 1,734,376 1,437,754 871,244 1,707,427 1,205,316 180,116 724,843 291,383 13,997 13,206 13,D40 1,894 1,894 2,000 0 8,409 0 (21,5881 130,2181 (73,9441 13,8041 (170,0121 0 t3,8b71 t329,3b0) 0 1,038,592 1,925,789 1,437,754 1,437,754 1,038,556 1,038,556 1,038,556 1,038,556 1,179,829 =-======= -=-=--=== ===r===== 168,024 729,683 852,161 326,840 383,887 412,154 13,000 13,000 13,000 2,000 2,000 2,000 0 0 0 171,3091 (90,0141 (99,492) 0 0 0 4 0 0 --------- --------- --------- 1,038,55b 1,038,556 1,179,829 } DAYS IN WDRKIN6 CAPITAL 146.76 187.79 148.53 107.22 79.37 82.24 t AVERAGE W.C. RESERVE 40.211 51.451 40.691 29.371 21.141 22.531 } LE6Al DEBT COVER. RATIO 19.98 53.48 38.18 1.75 2.20 2.19 } FINANCIAL CDVERA6E RATID 1.05 1.35 0.92 0.91 1.00 1.03 } RATE INCREASE NEEDED D.001 0.001 0.001 8.901 14.071 4.521 Cityy of LaPorte h Sewer Rate City of LaPorte N-R/E Mater h Seller Rate Study 21-Aug-85 Summary of Revenues h Expenditures 9 RUN 1« HATER FUND 1 50.OOX 1982-83 1983-84 1984-85 1985-86 1986-87 1987-88 ACCOUNT ---------------------- ----- ACTUAL ACTUAL BUDGET PLANNED PLANNED PLANNED - REVENUES: -------- -------- -------- -------- ------- -------- Hater Sales - Existing H t I 884,102 0 1,560,167 0 1,496,444 0 1,541,337 1,587,577 3 6 284 1,635,205 5 3 8 2 er ncrease a D 3 , 1 , 8 Hater line Charges 24,288 11,217 10,000 10,300 10,609 10,921 Hater Taps 74,134 101,645 135,000 35,000 36,050 37,132 Hater Reconnect Charges 7,053 10,205 8,000 11,000 11,330 11,670 Hater Neter Sales 0 4,986 2,500 2,500 2,515 2,652 Hater Penalties 15,873 31,223 13,250 6,500 6,695 6,896 Interest Income 32,859 55,866 21,500 21,500 22,145 22,809 liscellaneous Income P b bl C it l R F 8,410 0 8,312 0 1,450 a 1,775 a 0 38 0 ro a e ecovery ap a ees --------- --------- --------- --------- 1 ,400 --------- 138,400 --------- t TOTAL REVENUES t 1,056,383 1,184,281 1,688,144 1,629,912 2,151,665 2,374,572 EXPENDITURES: --------- --------- --------- --------- --------- --------- Personnel Services 383,088 479,775 522,019 570,195 658,513 732,767 Materials h Supplies 47,820 64,557 28,943 26,835 84,477 89,775 Maintenance 96,338 74,062 128,996 708,667 150,545 157,627 Services 136,069 176,714 251,402 227,506 311,676 360,013 Increase D erating Exp. 0 0 0 4 0 0 Capital Outlay 43,325 71,584 101,456 66,120 61,065 65,375 Capital Projects 50,000 122,524 ]58,354 100,000 100,000 100,000 Miscellaneous 0 24,259 0 0 0 0 Bad Debt Expense G h A Ch 39,222 30 483 28,943 66 205 44,962 46,311 47,701 49,132 arge , , 0 0 0 0 Debt Service - Principal 14,583 14,583 14,583 0 0 0 Debt Service - Interest 2,960 2,428 1,888 0 0 0 New Debt - Principal 0 0 0 136,830 136,830 136,830 New Debt -Interest 0 0 0 266,819 253,478 446,539 Trans. to 6D - Principal 92,120 42,120 135,090 135,590 136,044 141,190 Trans. to GD - Interest 68,201 68,201 155,735 146,200 136,644 126,928 Reserve Requirement 0 --------- 0 --------- 201,824 --------- 100,912 --------- 182,412 --------- 82,000 --------- t TOTAL C05TS ~ 1,004,204 --------- 1,294,951 --------- 1,745,252 --------- 1,932,584 --------- 2,259,990 --------- 2,488,115 --------- TRANSFER IN FROM GENERAL FUND 0 0 115,587 111,869 108,325 148,603 CHANGE IN NORKIN6 CAPITAL 52,174 493,330 58,479 {190,803) {0} 0 BEGINNING NORKIN6 CAPITAL 370,328 422,502 915,832 914,311 783,508 783,508 ENDING NDRKINfi CAPITAL 422,502 =..ec=: 915,832 ==.ac... 974,311 :=a...e. 783,50E .ea. .== 783,508 c..eeaec 783,508 .oac==== NDRKING CAP. COMPONENTS: - Cash h Investments 434,503 901,391 816,796 574,414 550,488 565,912 Accounts Receiaable 90,126 382,151 197,459 246,575 289,612 213,706 Accrued Interest Rec. 6,981 6,973 8,810 9,807 9,801 8,633 Inventory 945 1,000 1,355 1,509 1,509 1,328 Due From Other Funds 4 4,440 4 0 0 0 Accounts Payable D t Oth F d {70,766) 897) (1 (15,957) {89 774} 550,109} D (53,147} 167,908) (66,071} ue o er un s , , 0 0 D Advances from Customers (1,429] --------- 1173,9181 ---- 0 0 0 0 ENDING NDRKING CAPITAL 517,962 ----- 1,016,907 --------- 474,311 --------- 783,508 --------- 783,508 --------- 783,50E DAYS IN NDRKING CAPITAL 144.08 184.20 197.65 166.00 126.54 114.94 AVERAGE N.C. RESERVE 39.4BX 51.84X 54.15X 45.4BX 34.b1X 31.49X LEGAL DEBT COVERAGE RATIO 18.43 50.84 37.48 1.64 2.11 1.74 FINANCIAL COVERAGE RATIO 1.05 1.38 1.03 0.90 1.00 1.00 RATE INCREASE NEEDED O.OOX O.OOX O.OOX O.OOX 21.18X 8.50X ~ ~ Citv of LaPorte 5-R/E Nater E< Seller Rate Study 21-Aug-85 Summary of Revenues b Expenditures 9 RUN 0 SENER FUND 50.001 1982-B3 1483-B4 1984-85 1985-86 1986-B7 1987-B8 ACCOUNT ---------------------------- ACTUAL -------- ACTUAL -------- BUDBET -------- PLANNED -------- PLANNED -------- PLANNED -------- Serer Sales - Existing 890,131 1,418,804 1,411,383 1,459,904 1,503,702 1,548,813 Sewer Increase 0 0 0 267,163 411,303 423,642 Seger Line Charges 21,036 30,610 28,000 24,000 24,720 25,462 Seger Taps 29,008 14,813 10,000 8,500 8,755 9,018 Seger Inspection Fees 483 3,940 500 100 0 0 Industrial N. Surcharges 26,671 48,071 60,000 47,000 48,410 49,862 Sewer Penalties 15,873 31,223 13,250 6,500 6,695 6,896 Interest Income 32,859 55,866 21,500 21,500 22,145 22,809 Miscellaneous Income 8,070 8,312 1,450 1,775 0 0 Probable Capital Recovery Fees 0 --------- 0 --------- 0 --------- 0 --------- 261,200 --------- 261,200 --------- + TDTAL REVENUES t 1,024,630 --------- 1,611,809 --------- 1,552,483 --------- 1,831,042 --------- 2,286,930 --------- 2,347,701 --------- Personnel Services 402,848 522,198 606,128 510,198 746,720 832,942 Materials & Supplies 52,071 53,512 58,940 59,730 90,159 98,012 Maintenance 47,420 59,604 130,426 138,760 146,598 155,451 Services 174,983 193,795 263,558 252,093 305,067 332,377 Increase 0 erating Exp. C it l D tl 0 13 453 0 18 936 0 20 813 0 740 16 0 16 941 0 18 234 ap u ay a , 0 , 22 524 , 354 158 , 0 , 0 , 0 Capital Projects 50,0 0 1 , , Miscellaneous 0 24,259 0 0 0 D Bad Debt Expense 39,222 28,943 44,962 46,311 47,701 49,132 G b A Charge 30,483 66,245 0 0 0 0 Debt Service - Principal 10,411 10,417 10,417 0 0 0 Deht Service - Interest 2,115 1,735 1,344 0 0 0 New Debt - Principal 0 0 0 163,170 163,170 163,110 New Debt -Interest 0 0 0 318,182 302,212 221,111 Trans. to 60 - Principal 84,620 84,620 238,001 238,501 239,001 245,901 Trans. to 60 - Interest 62,649 62,649 378,641 358,439 338,216 317,748 Reserve Requirement 0 0 240,676 120,338 120,338 0 f TOTAL CDST5 ~ 970,281 1,249,396 2,152,264 2,282,421 2,516,189 2,434,738 --------- --------- --------- --------- --------- --------- TRANSFER IN FROM GENERAL FUND 4 0 245,080 236,981 229,259 228,310 CHANGE IN NDRKIN6 CAPITAL 54,350 362,412 {355,1011 (208,3911 {O1 141,274 BEGINNING NDRKIN6 CAPITAL 370,328 424,678 787,090 431,989 223,592 223,592 ENDING NDRKIN6 CAPITAL 424,618 781,090 431,989 223,592 223,592 364,866 NDRKIN6 CAP. CDMPONENT5: Cash & Investments 436,741 805,636 388,519 188,611 179,195 286,255 Accounts Receivable 90,590 342,092 93,924 80,265 94,274 138,448 Accrued Interest Rec. 7,016 6,233 4,140 3,193 3,193 4,361 Inventory 949 894 645 491 491 672 Due From Other Funds 0 3,969 0 0 D 0 Accounts Payahle {10,8221 (14,261) (23,8351 {17,5121 (22,1061 (33,421) Due to Other Funds (1,9071 {80,2381 0 0 0 D Advances From Customers {1,9381 --------- - {155,4421 -------- - D -------- 0 --------- 0 --------- D --------- ENDING NDRKING CAPITAL 520,630 908,882 463,443 255,447 255,047 396,321 ========= = ======== = = ==-=== -= -===-= =====m=== ====x=== DAYS IN NDRKIN6 CAPITAL 149,53 111.00 103.37 52.42 32.43 44.11 AVERAGE N. C. RESERVE 40.971 48.491 28.321 14.361 8.891 12.081 LEGAL DEBT CDVERA6E RATID 22.15 54.58 38.46 1.84 2.28 2.88 FINANCIAL CDVERA6E RATID 1.06 1.29 0.84 0.91 1.00 1.06 RATE INCREASE NEEDED 0.001 0.001 0.401 IB.301 7.691 .001 .- • • EXAMPLES OF COSTS FOR CAPITAL DEVELOPMENT OF LA PORTE'S WATER SYSTEM ® Existing Service - Single~Family Average Monthly Usage - 13,650 gallons Monthly Increase - $0.98 ® New Service Connection - One Single-Family Unit Tap Fee - $240 Capital Recovery II - $150 Monthly Increase - $0.98 © New Plat on City-Built Line - 25 Single-Family Lots Capital Recovery I - $4,900 Internal Lines - Owner's Cost QD New Service Connection on Plat C - One Single-Family Unit Tap Fee - $240 Capital Recovery II - $150 Monthly Increase - $0.98 QF New Plat Requiring 6-inch Main Extension E 300 Feet Long to Serve 25 Single-Family Lots Main Extension E $3,600 Minus Later Rebates from G and K 2,260 Net $1,340 Capital Recovery I $4,900 Internal Collection Lines - Owner's Cost © New 3-acre Commercial Development Requiring 10-inch Main Extension H - 150 Feet Long Reimbursement for Oversizing Line H (6 inches to 10 inches) - $450 Participation in Extension E (25 percent) - $900 Capital Recovery I - $3,528 Capital Recovery II - $1,800 Tap Fee (2 inches) - $590 Monthly Increase - $17.69 -1- . .. r • • QK New 2-acre, 50 Multifamily Unit Development Requiring 8-inch Main Extension I - 400 Feet Long and 6-inch Main Extension J - 400 Feet Long Cost of Oversizing Line I (6 inches to 8 inches) - $400 Participation in Extension E (38 percent) - $1,360 Extension J - $4,800 Capital Recovery I - $6,500 Capital Recovery II - $1,200 Internal Collection Lines - Owner's Cost Tap Fee (1-1/2 inches) - $440 Monthly Increase - $32.92 0 New Service Connection - One Single-Family Unit in Existing Platted Development without Sewer Lines Main Extension,L - City's Cost Capital Recovery II - $150 Tap Fee - $240 Monthly Increase - $0.98 -2- . :.• • • 1 W _V W W F- Q W Z N z 2 O W a~ W 2 H < W 2 < 6 ~ O 7 ~ d H > O J ~3 Zac < W 0 f, ~ ~ W d ~ 2 F W ~ ~ x ~ W io 2 pp < O ~ t m d LVId M3N 3Atl38 O1 O3 NOILN31X3 NIVW ,8 lO 3NIl a3218tl3A0 ,8 SNIVW N01881WSNVtl1 ~~ OO LN3WdOl3A30 1VIOtl3WW00 M3N I SOH 3NIl 03ZIStl3A0 ,Ol 2 O 2 d X W W 2 J W Z J Q 2 H N X W z O F O W Z Z O O W O W N 3 W 2 O O I O l O 12 O W O = V F y ~ W Q X ~ _ W 0 t) z O t" -- O 2 d. 2 O ~ V J O Z J S 2 aD O = O N f ~ o ~ O = Y W i 1- O ~ X W O d 1<t ~y < >; W N Z p 2 O ~ t ~p N r~~ dolt F J Id 2 2 O H O W 2 2 O V W J t7 Z_ N i ~` •- • • EXAMPLES OF COSTS FOR CAPITAL DEVELOPPdENT OF LA PORTE'S SEWER SYSTEM 0 Existing Service - Single Family Average Monthly Usage - 13,650 gallons Monthly Increase - $1.57 New Service Connection - One Single-Family Unit Tap Fee - $200 Capital Recovery II - $287 Monthly Increase - $1.57 New Plat on City-Built Line - 25 Single-Family Lots Capital Recovery I - $9,150 Internal Collection Lines - Owner's Cost New Service Connection on Plat C - One Single-Family Unit Tap Fee - $200 Capital Recovery II - $287 Monthly Increase - $1.57 New Plat Requiring 8-inch Main Extension E 300 Feet Long to Serve 25 Single-Family Lots Main Extension E $3,600 Minus Later Rebates from G and K 2,260 Net $1,340 Capital Recovery I $9,150 Internal Collection Lines - Owner's Cost New 3-acre Commercial Development Requiring 12-inch Main Extension H - 150 Feet Long Reimbursement for Oversizing Line H (8 inches to 12 inches) - $900 Participation in Extension E (25 percent) - $900 Capital Recovery I - $6,600 Capital Recovery II - $3,444 Tap Fee - $260 Monthly Increase - $28.25 ~~~ ` ~ ~~~-cQ ~~ ~~ . y 'r • • QK New 2-acre, 50 Multifamily Unit Development Requirin 10-inch Main Extension I - 400 Feet Long and 8-inch Main Extension J - 400 Feet Lon Cost of Oversizing Line I (8 inches to 10 inches) - $1,200 Participation in Extension E (38 percent) - $1,360 Extension J - $4,800 Capital Recovery I - $12,250 Capital Recovery II - $2,296 Internal Collection Lines - Owner's Cost Tap Fee - $260 Monthly Increase - $52.60 MO New Service Connection - One Sin le-Family Unit in Existing Platted Development without Sewer Lines Main Extension•~ - City's Cost Capital Recovery II - $287 Tap Fee - $200 Monthly Increase - $1.57 -2- /: . ~, • • Y > J O 0 ~ Y LL F < LL W O f' ~ F J j d F Z ~ ~ Z Z d ~ J ~ W ~ ~ 3 X ~ Z J W 0 ? W ~ ~ ~ LL W J m Z M 10 N d ltlld M3N 3A1l38 O1 OO 1N3WdOl3A30 O3 NOI1N31X3 NIYW .8 ltlIJtl3WW00 M3N IO3NIl 03ZI8H3A0 ,OL 3NI1 03ZI8!l3A0 .Zl II 38YNd W318A8 N011031100 W U_ W 09 W W W Z W N ~ d Z O O F ~ W V W W < Z J d N } C ~ O W V W ~ Z O W O J Z ~ H V J W W ~ W Z_ W J O O f W q T Z F ~ W S d W Z O Z ~ F O V H V Z x W W W < J ~ J O 2 ~ < O W O ~ ~ O t W Z O O O O F I" W Z J < J ~ O Z V O yL O h O ? V H V W Z q ~ W < X W N O W W O Q H W . f Z } J O _ ~ ~ < W J J d L7 Z ao < 6 Z io N 2 2 O H O W Z Z O V W J O 2 r- ~ ~o ~ • • ae W y Z F- Q ~-o ~ Z W ~ ~ O = ~ a M W 3 Wa ~ ~' ~ ~ ae ~~ a~ 0 H ~ Z W W Q N W V O It W ~ H V J H d V W y=j W Q ~ Z ~ W Q ~ W 7 Q W Z ; W ~ N Z Q 2 O ~ h _ W N N 'Z Q W '" } N W F... 3 W Q Q Q DO N as S Q ~ 2 M d d N H O V J Q H d Q V O`~ $'l^ ~~ ~~ ~ ~ ~ o m o ~ m ~ E E E g"'vv O M P N ~ ~ ~ c E LL W O Vf ~ (.~ w e 0 vi C A O ~, ~E 8 N N t0 E ~ A $g~i ~ ~ r N ~ ~ ~ C E 'i LL o V1 ~ V • E m ~ .E E .E E C ~ p~ N am a r G Vl ID N $~+ O tl N m `u oO O w a a ~ ~~~ r ~ ~ ~ ~ ~ ~ C E LL~ o H ~ V h f Z W W Q ~ H Q W W W ¢ ~ W W Q W ~ W W Z ~ ~ ~ Q W Q ~ v Q V o at o W ~. ~ W ~ W m ~ o J ~ d ~ t Q V 8 . ~ W • w C7 ~ = ,C a v a oc t W N ~, C 0 E W Q Q = C v ~~ W $ ~ r Q ~ V O W ~ Q ~ t J a f- d Q U H W V Q 0 N W Z W W 1 • • • ~ d'~ ~/~, RESOLUTION IN OPPOSITION TO THE PRESIDENT'S TAX PROPOSALS FOR MUNICIPAL BONDS WHEREAS, on May 29, 19$5, President Reagan submitted his tax proposal for "fairness, growth and simplicity" to Congress; and WHEREAS, included in the President's tax proposals are provisions which would eliminate or limit the tax-exemption of state and local government bonds including bonds issued by the City of La Porte; and WHEREAS, the President's proposals would deny tax-exempt status to bonds where the private sector benefits directly or indirectly from the use of more than one percent of the proceeds of the bond issue; would eliminate all advance refundings of tax-exempt bonds; would restrict the investment of bond proceeds; would require that certain earnings from the investment of bond proceeds be paid to the U. S. Treasury Department; would require that an Internal Revenue Service information report be filed for every bond issue; and would impose additional taxes on banks that purchase tax-exempt bonds; and WHEREAS, eachiof the President's proposed limitations on tax-exempt municipal bonds would adversely affect the City of La Porte by increasing borrowing costs, requiring continuous administrative review of bond issues and the use made of facilities financed with such issues, requiring filings with the Internal Revenue Service and review by the Internal Revenue Service of each bond issue, and jeopardizing the tax-exemption on bonds where the private sector benefits directly or indirectly from the use of more than one percent of a project financed by such bonds; and • • WHEREAS, the President's municipal bond proposals will result in an increase in costs which must be passed on to the residents of La Porte, Texas, will reduce the ability of City of La Porte to provide vital public services to such residents and will impose added federal bureaucratic controls over the provision of such services; BE IT, THEREFORE, RESOLVED, BY THE CITY COUNCIL OF THE CITY OF LA PORTE: Section 1. That the City Council of La Porte, Texas goes on record as opposing the limitations and restrictions on municipal bonds proposed by the President, which, if enacted into law would adversely affect all tax-exempt municipal bonds, including bonds issued by the City of La Porte; and BE IF FURTHER RESOLVED, that copies of this Resolution shall be sent to members of Congress urging them to oppose the provisions of the President's tax proposals which would impose new limitations on the issuers and purchasers of municipal bonds. Section 2. That this Resolution shall be effective from and after its adoption. Passed and approved on the 28th day of August, 1985. . • • Mayor, City of La Porte ATTEST: City Secretary,City of La Porte (SEAL) APPROVED: City Attorney, City of La Porte ~Y 1 C ~~~~i%~z~9zccaG .. ~~c~~~~frx/atd August 26, 1985 Honorable Mayor and Members of the City Council City of La Porte , La Porte, Texas Dear Mayor and Council Members: • Ju~.1,~~~1~jj65 ..J"c~G ~a.~ .~benLra.~ r'OO0 J'aS~ ~a~a ~o~~vaJid ..5~.r~dla~rL, /~~ 77056 71.Y/96O-900 We hereby respectfully request an extension of our contract dated December 5, 1979 for an additional five years to August 26, 1990 under the same terms and conditions. If this extension meets with your approval, please execute this agreement, returning two copies and retaining the original for your files. Respectfully submitted, Moroney, Beissner & Co., Inc. Cw-c c ~ R. David e r President RDF:cm ACCEPTED by vote of the City Council, City of La Porte, Texas, this the day of , 1985 Mayor ATTEST: Secretary ~~G~GG~4:G1/lGL~ vr~i 19/9 •~, ~ ~, ry Honorable Mayor and City Commission City of La Porte , La Porte, Texas Gentlemen: In connection with the future growth of the City of La Porte and the resultant need for additional borrowing, tive propose to act as financial advisors for the City under the following terms and conditions. VVe will stand ready at all times to advise with the City Commission on any additional bonds or warrants that it proposes to issue, or refunding of outstanding bonds or warrants, and to make detailed studies of each separate item as presented. Dn this connection we tivill assist the City Commission in determining maturity schedule, interest rates, optional provisions and the amount of tax levy required. We agree to periodically submit financial information, as well as general information, on the City of La Porte to Moody's Investors Service and to Standard & Poor's Corporation towards the end that the present ratings on La Porte will be extended ;• to include additional issues of bonds and, of course,. improved if possible. We will pay all costs incident to the preparation of the financial information and general information and the presentation of this information to the rating agencies, including a trip to New York, if we feel the trip will be advantageous. However, the City will pay any fees charged by the rating agencies for issuing their rating. We will be available at all reasonable times for consultation with the City Commission and the City Officials on all matters pertaining to the City's financial posi- tion. Whenever it has been determined that the City desires to issue any bonds or warrants or refunding of outstanding bonds, then the City agrees, at its own expense, to make available a firm of recognized market attorneys acceptable to us to prepare all necessary orders and certificates and to issue their legal opinion. In each case we agree to furnish, at our own expense, the printed bonds or warrants forms and to pay all usual and customary eapenses incidental to the approval of these bonds by the Attorney General, the registration by. the Comptroller of Public Accounts and delivery to the purchaser at a bank in Austin, Texas. i ~ / . __ . Page 2 - . It is agreed and understood that all bonds be sold on competitive bids and that the undersigned, or any of its associates, , shall'~not have. any interest; directly or in- directly, in the sale of any bonds by the City, excepting the fees provided in this con- tract. , -• When bonds are ready for sale then in those issues which total $500, 000 or more a printed prospectus shall be prepared and mailed to investment bankers in the United States dealing in municipal securikies. This prospectus shall contain, in sufficient detail, terms and conditions under which bids will be taken, bid forms, complete financial statement and adequate general information on the City. If Iess than $500, 000 of bonds are to be offered for sale, then substantially this same information shall be prepared in. xerographic form, or some similar method, and submitted to prespective bidders. For and in consideration of our services and as reimbursement for expenses which we will have paid on behalf of. the City, the City agrees to pay us a cash fee on all new issues or refundings, this fee to be in the following amounts: (a) 3% on the first $50, 000 of Bonds; 2% on .the next $200, 000 of Bonds; 1-1/2% on the next $1 Nlillion of Bonds; 3/4 of 1% on the next $1-1/2 Million of Bonds; 1/2 of 1% on all bonds over $2, 750, 000. (b) In addition thereto, the City agrees to pay us a cash retainer of five hundred dollars ($500.00) per year, this retainer to be paid out of current funds and to become due and payable on September 1 of each year. The fees listed in (a) above shall become due and_~payable simultaneously with the delivery of bonds to the purchaser and, in the case of a refunding, when old bonds have been cancelled and ne~v refunding bonds have been issued in exchange thereof. It is agreed and understood that the fees listed in (a) above shall not be due and payable should the City for any reason be unable to make final delivery on any issue of bonds or warrants or to complete any refunding and, in this event, any e.•cpenses which we have incurred shall accrue solely to us. .. •-I ~ r •------ ------ - -~- ~- ~ --• .. _ _ .. ~~..r._._....-- ---~~-- - • .. ---- ~ - -~ -- Page 3 • This contract shall remain in fixll force and effect for a period of five (5) years from its date, or in the event an issue is in the process of being completed then the term shall exEend until this issue has been delivered and paid for. :, . Respectfully submitted, MORONEY, BEISSNER & CO: , INC. . ~ ~ i. n G-~.-t -- R. David et e . ,President .ACCEPTED by voteof/the City Commission of the City of La Parte, ~. La Porte, Tehas, this the .7 day of ,~.1'-~sn~~/ 1979. . ~ . ~ ~ ~ ~ Mayor ATTEST: o }~~ ~ ~ ~ . ~~~~ Ci Clerk .G ~• ~: • O F F I C I A L N O T I C E O F S A L E Dated September 10, 1985 Place and Time of Sale The City Council of the City of La Porte will receive sealed bids until 7:30 p.m., CDST, September 24, 1985 in the Council Chambers of the City Hall, 604 W. Fairmont __ Parkway, La Porte, Texas 77571 on the following: DESCRIPTION OF GENERAL OBLIGATION BONDS S5,000,000 CITJi OP LA PORTS, TEXAS (Harris County) General Obligation Bonda SERIES 1985 The Bonds will be dated September 15, 1985 and interest on the Bonds will be due on March 15, 1986, and each September 15 and March 15 thereafter until the earlier of maturity or prior redemption. The Bonds will be issued in fully registered form in integral multiples of $5,000, and principal and semi-annual interest will be payable by the First City National Bank of Housotn, Houston, Texas, the paying agent/registrar (the "Registrar"l. Principal of the Bonds will be payable to the registered owner at maturity or redemption upon presentation of such Bonds to the Registrar. Interest on the Bonds will be payable by check or draft, dated as of the interest payment date, and mailed by the Registrar to registered owners as shown on the records of the Registrar as of the last business day of the month next preceding each interest payment date. Maturity Schedule The Bonds will mature serially on March 15, $250,000 each year 1986 through 2005. Optional Provisions All Bonds maturing on or after March 15, 1996 are optional for redemption in whole or in part on March 15, 1995 or any interest payment date thereafter at par and accrued interest to the date fixed for redemption. If less than all of the Bonds are redeemed at any time, the particular Bonds to be redeemed shall be selected by the City in integral multiples of $5,000 within any one maturity. The registered owner of any Bond, all or a portion of which has been called for redemption, shall be required to present same to the Registrar for payment of the redemption price on the portion of the Bond so called for redemption and a new Bond in the principal amount equal to the portion of such Bond not redeemed will be issued to such registered owner. Authorization These $5,000,000 General Obligation Bonds are the first installment sale out of $15,550,000 General Obligation Bonds approved at an election held on June 15, 1985 by a majority of the votes cast as follows: Amount Purpose For Against $ 2,500,000 Street Improvements 514 ~ 302 3,000,000 Drainage Improvements 591 232 4,000,000 Sanitary Land Fill 589 230 2,500,000 Park Improvements 500 320 1,500,000 Gymnasium 421 397 550,000 Fire Station 576 246 1,500,000 Fire Department Training Facilities 480 340 $15,550,000 f • Dse of Proceeds The proceeds from the sale of these $5,000,000 Bonds will be used as follows: Amount Purpose $ 550,000 Constructing or purchasing a Fire Station, additions and Improvements 450,000 Constructing or purchasing a Fire Department Training Facility and related improve- ments, including the purchase of a site therefor. 2,000,000 Purchasing and improving land for park purposes 1,000,000 Drainage improvements 1,000,000 Street improvements and drainage in connection therewith $5,000,000 After the issuance and sale of These S5,000,000 Bonds, there will remain $10,650,000 General Obligation Bonds authorized but unissued. Security These Bonds will, in the opinion of Counsel, constitute valid and legally binding obligations of the City of La Porte, Texas, payable from and secured by a continuing levy of ad valorem taxes against taxable property located in the City within the limits prescribed by law. Payment Record The City has not defaulted on General Obligation Bonds in more than forty-five years. • • DESCRIPTION OF REVENUE BONDS $6,000,000 CITY OF LA PORTE, TEXAS (Barrie County) WATERWORKS AND SEWER SYSTEM REVENIIE BONDS SERIES 1985 The Bonds will be dated September 15, 1985 and interest on the Bonds will be due on March 15, 1986, and each September 15 and March 15 thereafter until the earlier of maturity or prior redemption. The Bonds will be issued in fully registered form in ~- integral multiples of $5,000, and principal and semi-annual interest will be payable by the First City National Bank of Housotn, Houston, Texas, the paying agent/registrar (the "Registrar"). Principal of the Bonds will be payable to the registered owner at maturity or redemption upon presentation of such Bonds to the Registrar. Interest on the Bonds will be payable by check or draft, dated as of the interest payment date, and mailed by the Registrar to registered owners as shown on the records of the Registrar as of the last business day of the month next preceding each interest payment date. Maturity Schedule The Bonds will mature serially on March 15, $300,000 each year 1986 through 2005. Optional Provisions All Bonds maturing on or after March 15, 1996 are optional for redemption in whole or in part on March 15, 1995 or any interest payment date thereafter at par and accrued interest to the date fixed for redemption. If less than all of the Bonds are redeemed at any time, the particular Bonds to be redeemed shall be selected by the City in integral multiples of $5,000 within any one maturity. The registered owner of any Bond, all or a portion of which has been called for redemption, shall be required to present same to the Registrar for payment of the redemption price on the portion of the Bond so called for redemption and a new Bond in the principal amount equal to the portion of such Bond not redeemed will be issued to such registered owner. Authorization These 56,000,000 Bonds are the first installment sale out of $9,350,000 Revenue Bonds approved at an election held on June 15, 1985 by a majority of the votes cast as follows: Amount Purpose For Against $ 800,000 Waterworks System Improvements 614 208 8,550,000 Sanitary Sewer System Improvements 620 198 $9,350,000 Use of Proceeds The proceeds from the sale of these $6,000,000 Bonds will be used for sewer system improvements. After the issuance and sale of the Bonds, there will remain $3,350,000 Revenue Bonds authorized but unissued. Security These Bonds, in the opinion of Counsel, will constitute valid and legally binding special obligations of the City of La Porte, Texas, payable from and secured by a first lien on and pledge of the revenues derived from the operation of the City's Wateworks and Sewer System, after deduction of the reasonable expenses of maintenance and operation of said system. The owner (owners) of the Bonds shall never have the right to demand payment of the principal and interest on the Bonds out of any funds raised or to be raised by taxation. Legality Attorney General of the State of Texas and Messrs. Baker 6 Botts, Attorneys, Houston, Texas. Payment Record The City has never defaulted on Revenue Bonds. • • BIDDING CONDITIONS Address of Bids Bids should be in sealed envelopes plainly marked "Bid for Bonds" addressed to the the Mayor, City of La Porte, 604 W. Fairmont Parkway, La Porte, Texas 77571. Delivery of Bids Bids should be mailed or delivered so that they arrive not later than 7:30 p.m., CDST, September 24, 1985. For convenience of bidders, bids may be delivered to Moroney, Beissner b Co., Inc., Suite 1865 Post Oak Central, 2000 Post Oak Boulevard, Houston, Texas 7'7056, agent for the City; and, if delivered not later than 5:00 p.m., CDST, September 24, 1985, will be deemed to have been delivered to the City in accordance with the terms of this "Official Notice of Sale." Bids so delivered will not be opened except by the City Council of the City of La Porte and will not be opened prior to 7:30 p.m., CDST, September 24, 1985. No Bid From the Financial Advisor Under the terms of the contract with Moroney, Beissner ~ Co., Inc., Financial Advisors to the City, it is agreed and understood that Moroney, Beissner s Co., Inc. shall not be permitted to purchase any Bonds from the City nor have any interest directly or indirectly, in the original purchase and sale of the Bonds, except as Agent for the City. As Financial Advisors to the City, Moroney, Beissner s Co., Inc. will be paid a fee based upon a percentage of the principal amount of bonds actually sold and delivered, which fee is contingent upon such sale and delivery. Type of Hids and Interest Rates All bids must be submitted on the "Official Bid Form" enclosed herewith without change. The Bonds will be sold in two separate blocks, $5,000,000 General Obligation Bonds and $6,000,000 waterworks and Sewer System Revenue Bonds, at a price of not less than par value for each separate block of bonds, plus accrued interest from the date of the Bonds to date of delivery. Bidders are requested to specify the rate or rates of interest that the Bonds will bear, however, the net effective interest rate on the Bonds calculated pursuant to Article 717k-2, Vernon's Annotated Texas Statutes (V.A.T.S.), as amended, shall not exceed 158. There is no limit on the number of interest rates that may be named, however, all Bonds maturing on the same date must bear interest at one and the same rate. Interest rates must be in multiples of 1/8 or 1/20 of 18. The spread between the highest and lowest interest rates named may not exceed 28 in rate. Bids providing for zero or supplemental interest rates will not be considered. Award of Bonds For the purpose of awarding the Bonds, the interest cost of each bid will be computed by determining, at the interest rate or rates specified therein, the total dollar amount of all interest on the Bonds from the date of the Bonds to their respective maturities, and deducting therefrom the premium bid, if any. In the event of an error in interest cost calculations, the interest rates named in the "Official Bid Form" will govern. The City agrees to either award the Bonds on the sale date to the bidder whose bid on the above computation produces the lowest interest cost to the City and is in strict accordance with the bidding conditions of this "Official Notice of Sale" or reject all bids and readvertise the Bonds for competitive bids. No award will be made to any bidder bidding on terms and conditions not in strict conformity with this "Official Notice of Sale." Good Faith Deposit Each bid must be secured by a Good Faith Deposit in the form of a Bank Certified or Bank Cashier's Check in the amount of $100,000 accompanying bids for the $5,000,000 General Obligation Bonds, and in the amount of $120,000 accompanying bids for the $6,000,000 waterworks and Sewer System Revenue Bonds, payable to the City of La Porte. The Good Faith Deposit may accompany the "Official Bid Form" or it may be submitted separately; if submitted separately, it shall be made available to the payee prior to the opening of the bids and shall be accompanied by instructions of the bank on which drawn, which authorizes its use as a Good Faith Deposit by the successful bidder (the "Purchaser") who shall be named in such instructions. The check of the Purchaser will be retained by the City to assure performance of the contract on the part of the Purchaser. In the event the Purchaser should fail or refuse to take up and pay for the Bonds in accordance with his bid, then said check will be cashed and accepted by the City as full and complete liquidated damages. Otherwise, the Good Faith Check will be returned to the Purchaser upon the delivery of and payment for the Bonds. No interest will be paid by the City on the Good Faith Deposit. The checks of the unsuccessful bidders will be returned after award of the Bonds is made. <~ • • DELIVERY OF TAE BONDS AND ACCOMPANYING DOCUMENTS CUSIP Numbers It is anticipated that CUSIP identification numbers will be printed on the Bonds, but neither the failure to print such number on any Bond nor any error •with respect thereto shall constitute cause for a failure or refusal by the Purchaser to accept delivery of and pay for the Bonds in accordance with the terms of this "Official Notice of Sale" and the terms of the "Official Bid Form." All expenses in relation to the pr;ntinq 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 Bonda Delivery of the Bonds will be accomplished by the issuance of one Bond for each maturity (the "Initial Bonds"), either in typed or printed form, in the aggregate principal amount of $5,000,000 for the General Obligation Bonds, and $6,000,000 for the water and Sewer System Revenue Bonds, payable to the Purchaser, signed by the manual or facsimile signatures of the Mayor and City Secretary, approved by the Attorney General of the State of Texas, and registered, and manually signed by the Comptroller of Public Accounts of the State of Texas. Delivery (the "Initial Delivery") will be at the corporate trust office of the Registrar. Payment for the Initial Bonds must be made in immediately available funds for unconditional credit to the City, or as otherwise directed by the City. The Purchaser will be given five (5) business days' notice of the time fixed for delivery of the Initial Bonds. It is anticipated that Initial Delivery can be made on or about October 22, 1985 and it is understood and agreed that the Purchaser will accept delivery and make payment for the Initial Bonds on October 22, 1985, or thereafter on the date the Initial Bonds are tendered for delivery, up to and including November 5, 1985. If for any reason the City is unable to make delivery on or before November 5, 1985, 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 the Good Faith Deposit will be returned, and both the City and the Purchaser shall be relieved of any further obligation. Exchange of Initial Bonds If the Purchaser furnishes to the Registrar, at least five days prior to the Initial Delivery, written instructions designating the names in which Sonds are to be registered, the addresses of the registered owners, the maturities, interest rates and denominations of such Bonds, the Registrar shall, on the date of initial delivery, authenticate and deliver in exchange for the Initial Bonds, Bonds registered in accordance with such instructions in an aggregate principal amount equal to the aggregate principal amount of the Initial Bonds submitted for transfer or exchange. Legal Opinion The City will furnish without cost to the Purchaser a transcript of certain certified proceedings had incident to the issuance and authorization of the Bonds, including a certified copy of the approving legal opinion of the Attorney General of Texas, as recorded in the Bond Register of the Comptroller of Public Accounts of the State of Texas, to the effect that the Attorney General of Texas has examined a transcript of proceedings authorizing the issuance of the Initial Bonds, and the procedure for change in form and/or denomination as authorized in the Bond Order, and the Initial Bonds, and that based on such examination the Bonds are valid and legally binding obligations of the City, and based upon an examination of such transcript of proceedings, the approving legal opinion of Messrs. Baker & Botts, Bond Counsel, Houston, Texas, to a like effect (subject as to the enforcement of remedies to applicable bankruptcy, moratorium and similar laws affecting creditors rights generally from time to time in effect) and to the effect that the interest on the Bonds is exempt from all present Federal income taxes under existing statutes, regulations, public rulings, court decisions and official interpretations thereof. Such opinion of Baker 6 Botts is expected to be reproduced on the back of the Bonds over a certification by the facsimile signature of the City Secretary attesting that the opinion was dated as of the date of delivery of and payment for the Bonds, and that the copy is a true and correct copy of the original opinion, however, the failure to print such. opinion on any Bond shall not constitute cause for a failure of or refusal by the Purchaser to accept delivery of and pay for the Bonds. The legal fee to be paid Baker ~ Botts for services rendered in connection with the issuance and sale of the Bonds is calculated on the basis of a percentage of the Bonds actually issued, sold and delivered, and payment of such fee is contingent on the sale and delivery of the Bonds. .~ • No Litigation Certificate The City will furnish without cost to the Purchaser a Certificate signed by the Mayor and City Secretary which will recite, among other things, that no litigation of any nature has been filed or is now pending to restrain or enjoin the issuance or delivery of the Bonds or which would affect the provision made for their payment or security, or in any other manner questioning the proceedings or authority concerning the issuance of the Bonds, and that so far as is known and believed, no such litigation is threatened. 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, acting in his official capacity, - to the effect that the "Official Statement" has been authorized and approved by the City Council, and to the best of his knowledge and belief 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 any material fact necessary to make the statements therein, in light of circumstances in which they were made, not misleading; (b) since the date of the "Official Statement" no event has occurred which should have been set forth in an amendment or supplement to the "Official Statement" which has not been set forth in such amendment or supplement; and (c) there has not been any material adverse change in the operation or financial affairs of the City since the date of such "Official Statement." GENERAL Future Registration The Bonds may be transferred, registered and assigned only on the registration books of the Registrar, and such registration and transfer shall be without expense or service charge to the owner, except for any tax or other governmental charges required to be paid with respect to such registration and transfer. A Bond may be assigned by the execution of an assignment form on the Bonds or by other instrument of transfer and assignment acceptable to the Registrar. A new Bond or Bonds will be delivered by the Registrar in lieu of the Bond being transferred or exchanged at the principal office of the Registrar. To the extent possible, new Bonds issued in an exchange or transfer of Bonds will be delivered to the registered owner or assignee of the owner in not more than three (3) business days after the receipt of the Bonds to be cancelled in the exchange or transfer and the written instrument of transfer or request for exchange duly executed by the owner or his duly authorized agent, in form satisfactory to the Registrar. New Bonds registered and delivered in an exchange or transfer shall be in denominations of $5,000 or any integral multiple thereof for any one maturity and for a like aggregate principal amount as the Hond or Bonds surrendered for exchange or transfer. Limitation on Transfer or Exchange of Bonds Neither the City nor the Paying Agent/Registrar shall be required to transfer or exchange any Bond during the period of fifteen (15) days next preceding any interest date or to transfer or exchange any Bond during the thirty (30) day period prior to the date fixed for the redemption of such Bond or Bonds. Successor Paying Agent/Registrar (the "Registrar") Provision is made in the ordinance authorizing the issuance of the Bonds (the "Bond Ordinance") for replacement of the Registrar. If the Registrar is replaced by the City, the new Registrar shall accept the previous Registrar's records and act in the same capacity as the previous Registrar. Any Registrar selected by the City shall be either a national or state banking institution and shall be a corporation organized and doing business under the laws of the United States of America or of any State, authorized under such laws to exercise trust powers, and subject to supervision or examination by Federal or State authority. Successor Registrars, if any, shall be determined by the City.' Record Date The record date ("Record Date") for the interest payable on any interest payment date is defined as the last business day of the month next preceding such interest payment date. r~ Not an Offer to Sell • This "Official Notice of Sale" does not alone constitute an offer to sell the Bonds. This "Official Notice of Sale," the "Official Bid Form" and the "Official Statement" collectively constitute the offer to sell the Bonds. Prospective purchasers are urged to carefully examine the "Official Statement" and to make other investigations they deem necessary to determine the investment quality of the Bonds. the Bonds: Responsibility for Qualification of Bonds for Sale in Respective States The offer and sale of the Bonds have not been registered or qualified under the Securities. Act of 1933, as amended, in reliance upon the exemptions provided thereunder. The Bonds have not been registered or qualified under the Securities Act of Texas in reliance upon various exemptions contained therein, nor have the Bonds been registered or qualified under the securities acts of any other jurisdiction. Neither the City nor Moroney, Beissner b Co., Inc. assumes any 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. Additional Copies Additional copies of the "Official Notice of Sale,", "Official Statement" and "Official Bid Form" may be obtained from Moroney, Beissner 6 Co., Inc., Suite 1865 Post Oak Central, 2000 Post Oak Boulevard, Houston, Texas 77056. NORMAN MALONE, MAYOR CITY OF LA PORTE, TEXAS • • O F F I C I A L S T A T E M E N T Dated September 10, 1985 In the opinion of Bond Counsel, the interest on These Bonds is exempt from all present Federal income taxes under existing statutes, regulations, public rulings, court decisions and official interpretations thereof. DESCRIPTION OF GENERAL OBLIGATION BONDS $5,000,000 CITY OF LA PORTE, TEXAS (Harris County) General Obligation Bonds SERIES 1985 Ratings on Outstanding Bonds: Moody 's - "A" S & P's - "A+" New Ratings Applied For The Bonds will be dated September 15, 1985 and interest on the Bonds will be due on March 15, 1986, and each September 15 and March 15 thereafter until the earlier of maturity or prior redemption. The Bonds will be issued in fully registered form in integral multiples of $5,000, and principal and semi-annual interest will be payable by the First City National'Bank of Housotn, Houston, Texas, the paying agent/registrar (the "Registrar"). Principal of the Bonds will be payable to the registered owner at maturity or redemption upon presentation of such Bonds to the Registrar. Interest on the Bonds will be payable by check or draft, dated as of the interest payment date, and mailed by the Registrar to registered owners as shown on the records of the Registrar as of the last business day of the month next preceding each interest payment date. March 15 Maturity Schedule Year Amount Year Amount Year Amount 1986 S250,000 1993 $250,000 2000 '$250,000 1987 250,000 1994 250,000 2001 250,000 1988 250,000 1995 250,000 2002 250,000 1989 250,000 1996 250,000 2003 250,000 1990 250,000 1997 250,000 2004 250,000 1991 250,000 1998 250,000 2005 250,000 1992 250,000 1999 250,000 Optional Provisions All Bonds maturing on or after March 15, 1996 are optional for redemption in whole or in part on March 15, 1995 or any interest payment date thereafter at par and accrued interest to the date fixed for redemption. If less than all of the Bonds are redeemed at any time, the particular Bonds to be redeemed shall be selected by the City in integral multiples of $5,000 within any one maturity. The registered owner of any Bond, all or a portion of which has been called for redemption, shall be required to present same to the Registrar for payment of the redemption price on the portion of the Bond so called for redemption and a new Bond in the principal amount equal to the portion of such Bond not redeemed will be issued to such registered owner. Authorization These $5,000,000 General Obligation Bonds are the first installment sale out of $15,550,000 General Obligation Bonds approved at an election held on June 15, 1985 by a majority of the votes cast as follows: • L' Amount Purpose For A ag inst S 2,500,000 Street Improvements 514 302 3,000,000 Drainage Improvements 591 232 4,000,000 Sanitary Land Fill 589 230 2,500,000 Park Improvements 500 320 1,500,000 Gymnasium 421 397 550,000 Fire Station 576 246 1,500,000 Fire Department Training Facilities 480 340 $15,550,000 Use of Proceeds The proceeds from the sale of these $5,000,000 Bonds will be used as follows: Amount Purpose $ 550,000 Constructing or purchasing a Fire Station, additions and Improvements 1 Constructing or purchasing a 450,000 Fire Department Training Facility and related improve- ments, including the purchase of a site therefor. 2,000,000 Purchasing and improving land for park purposes 1,000,000 Drainage improvements 1,000,000 Street improvements and drainage in connection therewith $5,000,000 After the is suance and sale of These $5,000,000 Bonds, there will remain $10,650,000 General Obli gation Bonds authorized but unissued. Security These Bonds will, in the opinion of Counsel, constitute valid and lega lly binding obligations of the City of La Porte, Texas, payable from and secured by a continuing levy of ad valorem taxes against taxable property located in the City within the limits presc ribed by law. Payment Record The City has not defaulted on General Obligation Bonds in more than forty-five years. y • DESCRIPTION OF REVENUE BONDS $6,000,000 CITY OF LA PORTE, TEXAS (Harris County) WATERWORKS AND SEWER SYSTEM REVENUE BONDS SERIES 1985 The Bonds will be dated September 15, 1985 and interest on the Bonds will be due on March 15, 1986, and each September 15 and March 15 thereafter until the earlier of maturity or prior redemption. The Bonds will be issued in fully registered form in integral multiples of $5,000, and principal and semi-annual interest will be payable by the First City National Bank of Housotn, Houston, Texas, the paying agent/registrar (the "Registrar"). Principal of the Bonds will be payable to the registered owner at maturity or redemption upon presentation of such Bonds to the Registrar. Interest on the Bonds will be payable by check or draft, dated as of the interest payment date, and mailed by the Registrar to registered owners as shown on the records of the Registrar as of the last business day of the month next preceding each interest payment date. March 15 Maturity Schedule Year Amount Year Amount Year Amount 1986 $300,000 1993 $300,000 2000 $300,000 1987 300,000 1994 300,000 2001 300,000 1988 300,000 1995 300,000 2002 300,000 1989 300,000 1996 300,000 2003 300,000 1990 300,000 1997 300,000 2004 300,000 1991 300,000 1998 300,000 2005 300,000 1992 300,000 1999 300,000 Optional Provisions All Bonds maturing on or after March 15, 1996 are optional for redemption in whole or in part on March 15, 1995 or any interest payment date thereafter at par and accrued interest to the date fixed for redemption. If less than all of the Bonds are redeemed at any time, the particular Bonds to be redeemed shall be selected by the City in integral multiples of $5,000 within any one maturity. The registered owner of any Bond, all or a portion of which has been called for redemption, shall be required to present same to the Registrar for payment of the redemption price on the portion of the Bond so called for redemption and a new Bond in the principal amount equal to the portion of such Bond not redeemed will be issued to such registered owner. Authorization These $6,000,000 Bonds are the first installment sale out of $9,350,000 Revenue Bonds approved at an election held on June 15, 1985 by a majority of the votes cast as follows: Amount Purpose For Against $ 800,000 Waterworks System Improvements 614 208 8,550,000 Sanitary Sewer System Improvements 620 198 $9,350,000 Use of Proceeds The proceeds from the sale of these $6,000,000 Bonds will be used for sewer system improvements. After the issuance and sale of the Bonds, there will remain $3,350,000 Revenue Bonds authorized but unissued. Security These Bonds; in~the opinion of Counsel, will constitute valid and legally binding special obligations of the City of La Porte, Texas, payable from and secured by a first lien on and pledge of the revenues derived from the operation of the City's Wateworks and Sewer System, after deduction of the reasonable expenses of maintenance and operation of said system. The holder or holders of the Bonds shall never have the right to demand payment of the principal and interest on the Bonds out of any funds raised or to be raised by taxation. Payment Record The City has never defaulted on Revenue Bonda. BOND COUNSEL • Messrs. Baker b Botts, Houston, Texas, have acted as bond counsel in connection with the authorization, issuance, sale and delivery of The Bonds. In this capacity, such firm Has reviewed the information appearing in this "Official Statement" under the caption entitled "Description of Bonds," solely to determine whether such description conforms to the provisions of the ordinance authorizing the issuance and sale of the Bonds. Such firm has not independently verified any of the factual information contained in this "Official Statement," nor has it conducted an investigation of the affairs of the City for the purpose of passing upon the accuracy or completeness of this "Official Statement." No person is entitled to rely on such firm's limited participation as an assumption of responsibility for, or an expression of opinion of any kind with regard to the accuracy or completeness of any of the information contained herein. The legal fees to be paid Messrs. Baker 6 Botts for services rendered as bond counsel in connection with the issuance and sale of the Bonds are contingent upon the Bonds actually being issued, sold and delivered. RATINGS The outstanding General Obligation Bonds of the City are rated "A" by Moody's Investors Service, Inc. and "A+" by Standard b Poor's Corporation (the "Rating Agencies"). Applications for contract ratings on the $5,000,000 General Obligation Bonds, Series 1985, and the $6,000,000 Waterworks and Sewer System Revenue Bonds, Series 1985, have been made to both Moody's Investors Service, Inc. and Standard 6 Poor's Corporation (the "Rating Agencies"). The new ratings will be provided by addendum to this "Official Statement" as soon as possible after their assignment. An explanation of the significance of the ratings may be obtained from the Rating Agencies. The ratings reflect only the respective views of the Rating Agencies and the City makes no representation as to the appropriateness of the ratings. There is no assurance that the ratings assigned will continue for any given period of time or that they will not be changed, suspended or withdrawn by either of the Rating Agencies. Any change, suspension oz withdrawal of the ratings may have an effect on the market price of the Bonds. REGISTRATION Tax Equity and Fiscal Responsibility Act of 1982 ("TEFRA"), as amended, mandates, among other things, that all municipal bonds (excepting those with a one year maturity •. or less) must be in fully registered form beginning July 1, 1983. Paving Agent/Registrar (the "Registrar") The Bonds will be issued in fully registered form in integral multiples of $5,000, and principal and semi-annual interest will be payable by the First City National Bank of Houston, Houston, Texas, the Paying Agent/Registrar (the "Registrar"). Principal of the Bonds will be payable to the registered owner at maturity or redemption upon presentation to the Registrar, interest on the Bonds will be payable by check or draft, dated as of the interest payment date, and mailed by the Registrar to registered owners as shown on the records of the Registrar as of the last business day of the month next preceding each interest payment date. Successor Paying Agent/Registrar Provision is made in the ordinance authorizing the issuance of the Bonds (the "Bond Ordinance") for replacement of the Registrar. If the Registrar is replaced by the City, the new Registrar shall accept the previous Registrar's records and act in the same capacity•as the previous Registrar. Any Registrar selected by the City shall be either a national or state banking institution and shall be a corporation organized and doing business under the laws of the United States of America or of any State, authorized under such laws to exercise trust powers, and subject to supervision or examination by Federal or State authority. Successor Registrars, if any, shall be determined by the City. ~~ • • Future Registration The Bonds may be transferred, registered and assigned only on the registration books of the Registrar, and such registration and transfer shall be without expense oz service charge to the owner, except for any tax or other governmental charges required to be paid with respect to such registration and transfer. A Bond may be assigned by the execution of an assignment form on the Bonds or by other instrument of transfer and assignment acceptable to the Registrar. A new Bond or Bonds will be delivered by the Registrar in lieu of the Bond being transferred or exchanged at the principal office of the Registrar. To the extent possible, new Bonds issued in an exchange or transfer pf Bonds will be delivered to the registered owner or assignee of the owner in not more than three (3) business days after the receipt of the Bonds to be cancelled in the exchange or transfer and the written instrument of transfer or request for exchange duly executed by the owner or his duly authorized agent, in form satisfactory to the Registrar. New Bonds registered and delivered in an exchange or transfer shall be in denominations of 55,000 or any integral multiple thereof for any one maturity and for a like aggregate principal amount as the Bond or Bonds surrendered for exchange or transfer. Limitation on Transfer or Exchange of Bonds Neither the City nor the Paying 'Agent/Registrar shall be required to transfer or exchange any Bond during the period of fifteen (15) days next preceding any interest payment date or to transfer or exchange any Bond during the thirty (30) day period prior to the date fixed for the redemption of such Bond or Bonds. Record Date The record date ("Record Date") for the interest payable on any interest payment date is defined as the last business day of the month next preceding such interest payment date. PROPERTY TAXES Property Subject to Taxation by the Cit Except for certain exemptions provided by Texas law, all real and certain tangible personal property in the City is subject to taxation by the City. Principal categories of exempt property include: property owned by the State of Texas or its political subdivisions if the property is used for public purposes; property exempt from ad valorem taxation by federal law; certain household goods, family supplies, and personal effects; farm products owned by the producer; certain property owned by charitable organizations, youth development associations, religious organizations, and qualified schools; designated historic sites; solar and wind-powered energy devices; and most individually owned automobiles. In addition, the City, either by action of the City Council or through a process of petition and referendum initiated by its residents, may grant exemptions for residential homesteads of persons 65 years or older and of certain disabled persons. If requested, the City must grant exemptions to disabled veterans or certain surviving dependents of disabled veterans in an amount not to exceed $3,000 of taxable value. An amendment to the Texas Constitution also authorizes the City to exempt up to 408 of the market value of residential homesteads from ad valorem taxation for the years 1982 through 1984, 308 for the years 1985 through 1987, and 208 in 1988 and thereafter. The City Council of the City of La Porte has voted to grant an exemption of 208• of the market value of a residence homestead from ad valorem taxation for the 1984 tax year. Both the Constitutional amendment and the Property Tax Code (the "Code") provide that if ad valorem taxes have been pledged for the payment of debt prior to the adoption of the exemption, taxes may be assessed and collected against the exempt value of the homesteads if the cessation of the levy against such exempt value would impair the obligation of the contract by which the debt was created. Valuation of Property for Taxation The Code requires property to be appraised at 1008 of market value as of January 1 of each year. Beginning in 1984, the appraisal of taxable property for the City (except railroad rolling stock, which is appraised by the State) and all other taxing entities in the City became the responsibility of the Harris County Appraisal District (the "Appraisal District"), a county-wide agency created under the Code for that purpose. The Appraisal District is governed by a five member board whose members are appointed by vote of the governing bodies of the various governmental units within the County under a voting system weighted in direct proportion to the amount of taxes imposed by the voting entities. /~ • • The Code requires the Appraisal District to implement a plan for periodic reappraisal of all taxable property in the County, and reappraisal must be effected at least once every four years. Taxable values determined by the Chief Appraiser of the Appraisal District are submitted for review and equalization to an Appraisal Review Board appointed by the Appraisal District. Appraisals may be contested before the Appraisal Review Board by taxpayers, and the Appraisal Review Board's orders are appealable to a state district court. Tax Rate The City Council establishes the tax rate for the City by September 1 of each year, or as soon thereafter as practicable, based on the values as of January 1, as shown on the appraisal roll approved by the Appraisal Review Board. The Code provides for certain calculations to be made and procedures to be followed before tax increases can be implemented. The effect of such provisions is (a) to require a public hearing if a proposed tax increase, other than for taxes levied to pay debt service on bonds, exceeds 38 and (b) if such increase exceeds 88 per annum, upon petition of 108 of the qualified voters in the City, to require an election to limit the increase to 88. Collection, Penalty, and Interest Tax statements are mailed by October 1 or as soon thereafter as practicable, and taxes become delinquent on February 1 of the following year. If tax statements are mailed after January 10, the delinquency date is postponed to the first day of the next month that will provide a period of at least 21 days between the date the statement is mailed and the date taxes become delinquent. Delinquent taxes incur a penalty of 78 of the amount of the tax for the first calendar month of delinquency plus 28 for each additional month or portion of a month of delinquency thereafter, until July 1, when the penalty becomes 188. Interest on delinquent taxes accrues at the rate of 18 per month until the tax is paid. Tax Liens On January 1 of each year, a tax lien attaches to property to secure the payment of all taxes, penalties, and interest ultimately imposed for the year on the property. The lien exists in favor of each taxing unit, including the City, having power to tax the property. The tax lien on real property has priority over the claim of most creditors and other holders of liens on the property encumbered by the tax lien, whether or not the other debt or lien existed before the attachment of the tax lien. Taxes levied by the City are the personal obligations of the property owner, and under certain circumstances personal property is subject to seizure and sale for the payment of delinquent taxes, penalty, and interest. At any time after taxes on property become delinquent, the City may file suit to foreclose the lien securing payment of the tax, to enforce personal liability for the tax, or both. In filing a suit to foreclose a tax lien on real property, the City must join other taxing units that have claims for delinquent taxes against all or part of the same property. The ability of the City to collect delinquent taxes by foreclosure may be adversely affected by many factors, including the amount of taxes owed to other taxing units, adverse market conditions, taxpayer redemption rights, or bankruptcy proceedings which restrain the collection of a taxpayer's debt. USE OF INFORMATION IN OFFICIAL STATEMENT This "Official Statement" has been prepared by Moroney, Beissner 6 Co., Inc., a firm employed by the City to perform professional services in the capacity of Financial Advisors, including the preparation of this ~"Official Statement." Information with respect to interest rates, discounts, and other matters relating to the resale of These Bonds, including changes in the affairs of the City subsequent to the date hereof, is the responsibility of the successful bidder and such information is not provided herein. The information set forth herein has been obtained from the City and other sources which are believed to be reliable, but no guarantee is made as to the accuracy or completeness of such information, and its inclusion herein is not to be construed as a representation on the part of the City nor Moroney, Beissner b Co, Inc. to such effect. No person has been authorized to give any information or to make any representations other than those contained in this "Official Statement," and if given or made, such other information or representations must not be relied upon as having been authorized by the City, or Moroney, Beissner and Co., Inc. This "Official Statement" does not constitute an offer to sell or solicitation of an offer to buy in any state in which such offer oz soliciation is not authorized, or in which the person making such offer or solicitation is not qualified to do so, or any person to whom it is unlawful to make such offer or solicitation. Any information and expressions of opinions herein are subject to change, without notice, and neither the delivery of this "Official Statement," nor any sale made hereunder, shall under any circumstances create any implication that there has been no change in the affairs of the City since the date hereof. l • • O F F I C I A L B I D F O R M G E N E R A L O B L I G A T I O N H O N D S, S E R I E S 1 9 8 5 Honorable Mayor and City Council City of La Porte La Porte, Texas Mayor and Members of the City Council: This bid is submitted under the bidding conditions of your "Official Notice of Sale" dated September 10, 1985 of 55,000,000 City of La Porte, Texas, General Obligation Bonds, Series 1985, the terms and conditions of which "Official Notice of Sale" are made a part hereof. For your legally issued $5,000,000 of Bonds, as described in said "Official Notice of Sale," we will pay you par and accrued interest from date of issue to date of delivery to us, plus a cash premium of $ for Bonds maturing and bearing interest as follows: Interest Interest Maturity Rate Maturity Rate 1986 8 1996 8 1987 8 1997 B 1988 8 1998 $ 1989 8 1999 8 1990 B 2000 8 1991 9 2001 8 1992 8 2002 B 1993 8 2003 8 1994 9 2004 B 1995 8 2005 8 Interest cost, in accordance with the above bid, is: Gross Interest Cost $ Less Premium $ NET INTEREST COST $ EFFECTIVE INTEREST RATE $ The Initial Bonds shall be registered in the name of (syndicate manager). we will advise the First City National Bank of Houston, Houston, Texas, 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. Attached hereto or submitted separately is Hank Certified or Bank Cashier's Check of the in the amount of $100,000 which represents our Good Faith Deposit and which is submitted in accordance with the terms as set forth in the "Official Notice of Sale." We have read in detail the "Official Notice of Sale" and the "Official Statement" and we have made such' investigations as we deem necessary relating to the City and to the investment quality of the Bonds. • Respectfully submitted, By - • • ACCEPTANCE CLAUSE The foregoing bid is hereby in all things accepted by the City of La Porte, Texas this the day of 1985. ATTEST: Secretary, City of va Porte, Texas Mayor, City of La Porte, Texas ACCUMULATED BOND YEARS $5,000,000 City of La Porte, Texas General Obligation Bonds Series 1985 Dated: September 15, 1985 Maturity: March 15 Year of Amount Accumulated Maturity of Bonds Bond Years 1986 $250,000 125 1987 250,000 500 1988 250,000 1,125 1989 250,000 2,000 1990 250,000 3,125 1991 250,000 4,500 1992 250,000 6,125 1993 250,000 8,000 1994 250,000 10,125 1995 250,000 12,500 1996 250,000 15,125 1997 250,000 18,000 1998 250,000 21,125 1999 250,000 24,500 2000 250,000 28,125 2001 250,000 32,000 2002 250,000 36,125 2003 250,000 40,500 2004 250,000 45,125 2005 250,000 50,000 Average Maturity ...... 10 Years • • O P F I C I A L B I D F O R M W A T E R W O R K S A N D S E W E R S Y S T E M R E V E N G E H O N D S Honorable Mayor and City Council City of La Porte La Porte, Texas Mayor and Members of the City Council: This bid is submitted under the bidding conditions of your "Official Notice of Sale" dated September 10, 1985 of $6,000,000 City of La Porte, Texas Waterworks and Sewer System Revenue Bonds, Series 1985, the terms and conditions of which "Official Notice of Sale" are made a part hereof. For your legally issued $6,000,000 of Bonds, as described in said "Official Notice of Sale," we will pay you par and accrued interest from date of issue to date of delivery to us, plus a cash premium of $ for Bonds maturing and bearing interest as follows: Interest Interest Maturity Rate ~ Maturity Rate 1986 8 1996 8 1987 8 1997 8 1988 8 1998 ~ 1989 B 1999 B 1990 $ 2000 8 1991 8 2001 $ 1992 9 2002 B 1993 8 2003 ~ 1994 8 2004 ~ 1995 8 2005 8 Interest cost, in accordance with the above bid, is: Gross Interest Cost $ Less Premium S NET INTEREST COST $ EFFECTIVE INTEREST RATE $ The Initial Bonds shall be registered in the name of (syndicate manager). We will advise the First City National Bank of Houston, Houston, Texas, 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. Attached hereto or submitted separately is Bank Certified or Bank Cashier's Check of the ; in the amount of $120,000 which represents our Good Faith Deposit and which is submitted in accordance with the terms as set forth in the "Official Notice of Sale." We have read in detail the "Official Notice of Sale" and the "Official Statement" and we have made such investigations as we deem necessary relating to the City and to the investment quality of the Bonds. Respectfully submitted, By • ACCEPTANCE CLAUSE The foregoing bid is hereby in all things accepted by the City of La Porte, Texas this the day of 1985. ATTEST: Secretary, City of La Porte, Texas Mayor, City of La Porte, Texas ACCUMULATED BOND YEARS $6,000,000 City of La Porte, Texas Waterworks and,Sewer System Revenue Bonds Series 1985 Dated: September 15, 1985 Maturity: March 15 Year of Amount Accumulated Maturity of Bonds Bond Years 1986 $300,000 150 1987 300,000 600 1988 300,000 1,350 1989 300,000 2,400 1990 300,000 3,750 1991 300,000 5,400 1992 300,000 7,350 1993 300,000 9,600 1994 300,000 12,150 1995 300,000 15,000 1996 300,000 18,150 1997 300,000 21,600 1998 300,000 25,350 1999 300,000 29,400 2000 300,000 33,750 2001 300,000 38,400 2002 300,000 43,350 2003 300,000 98,600 2004 300,000 59,150 2005 300,000 60,000 Average Maturity ...... 10 Years CITY OF LA FORTE, TEXAS ELECTED OFFICIALS Years of Term Official Title Service Expires Occupation Norman Malone Mayor 4 Mos.* 4/88 Vocational Director, Pasadena Independent School District Deotis Gay Councilman 5 Years 4/86 Operator, Rohm b Haas Betty waters Councilwoman 1 Year ** 4/86 Retired City Secretary John Lloyd Councilman 4 Mos. 4/88 PPG Industries Delbert walker Councilman 4 Mos. *** 4/87 Owner, walker Sand 8 Gravel Co. Ed Matuszak Councilman 4 Years 4/88 Engineer, Ebasco Lindsay Pfeiffer Councilman 5 Years 4/86 Co-Owner, Pfeiffer b Son, Inc. B. Don Skelton Councilman 5 Years 4/86 Retired Linda Westergren Councilwoman 5 Years 4/87 Investments * Mr. Malone Served on City Council from 1980 until his resignation in 1985 to run for Mayor. ** Mrs. Waters is filling an unexpired term. *** Mr. Walker is filling an unexpired term vacated by Mr. Malone. APPOINTED OFFICIALS Length Name Title of Service B. Jack Owen City Manager 4 Years Richard Hare Assistant City Manager 3 Mos. Chezie Black City Secretary 7 Years Charlene Campbell Revenue Control ler 1 Year Jerry Hodge Director of Public works 5 Years Knox Askins City Attorney 20 Years Tom Keilman Finance Officer 2 Months Moroney, Beissner & Co., Inc. Financial Advis ors 37 Years BOND COUNSEL Baker b Botts, Houston, Texas • • FINANCIAL STATEMENT City of La Porte, Texas (As of 7/31/85) Adjusted to Include $5,000,000 G.O. Bonds, Series 1985 1984 Assessed Valuation (1008 of Actual) ............................. $680,116,940* General Obligation Debt Outstanding: Presently Outstanding Bonds .................. $ 9,931,000 These Bonds, Series 1985 ...................... 5,000,000 Gross Debt .... .. .. .......... $19,931,000 . ........ . ... ... Less: Interest and Sinking Fund Balance ........ 333,525 Net Debt ....................................................... $14,597,475 Ratio of Net Debt to 1984 Assessed Valuation ........................... 2.150 July 1985 Estimated Population - 25,655 Net Debt per Capita ............ $569 1984 Assessed Valuation per Capita ................. $26,510 Area of City ......... 18.09 square miles *Assessed Valuation is net of exemptions in the amount of $52,957,530 The above General Obligation Debt Statement does not include $6,000,000 Waterworks and Sewer System Revenue Bonds, Series 1985, being offered jointly with the G.O. Bonds. (See "UTILITY DEPARTMENT") TAX COLLECTION PERIOD Tax bills are sent out October 1, each year, and taxes are delinquent after January 31. No split payments are allowed and no discounts are given on early tax payments. Penalty and interest on delinquent payments are rigidly enforced. TAX COLLECTION DATA Tax Assessed Tax Percent Tax Collections Year Year Valuation Rate Current Total Ending 1977 $139,102,254 $1.05 97.41 99.40 9/30/78 1978 177,688,450 (1) 0.91 95.58 98.06 9/30/79 1979 222,276,990 0.91 95.91 98.69 9/30/80 1980 366,726,568 (2) 0.91 97.09 98.66 9/30/81 1981 515,147,910 (3) ~ 0.72 97.35 98.38 9/30/82 1982 530,047,550 0.72 98.22 100.59 9/30/83 1983 553,977,910 0.72 98.70 100.81 9/30/84 1984 680,116,940 (4) 0.7128 In Process of Collection Delinquent taxes outstanding for all prior years as of 7/31/85 ............. $216,332 (1) Revaluation. (2) Consolidated with the City of Lomax on April 28, 1980 and expansion of industrial district. (3) Revaluation and increased basis of assessment from 80$ of actual to 1008 of actual. (4) Includes the annexation of College View MUD and Spenwick Place MUD on December 28, 1983. TAX RATE DISTRIBUTION Tax Year: 1984 1983 1982 1981 1980 General Fund $0.4921 $0.54852 $0.535 $0.5255 $0.6917 Interest b Sinking Fund 0.2207 0.17148 0.185 0.1945 0.2183 $0.7128 $0.72000 $0.720 $0.7200 $0.9100 • • TAX RATE LIMITATIONS The City of La Porte is a Home Rule Charter City with a maximum authorized rate for all purposes of $2.50 per S100 Assessed Valuation. This maximum tax rate is imposed both by the Constitution of the State of Texas and the City Charter. Within this $2.50 maximum there is no limit upon the amount of taxes which can be levied for Debt Service. INTEREST ~ SINRZNG FUND MANAGEMENT INDEX General Obligation Debt Service Requirement for Fiscal Year ending 9/30/85 ........................................................... $1.500,873 Interest 6 Sinking Fund Balance as of 9/30/84 ........................................... $ 909,516 Interest b Sinking Fund Tax Levy of $0.2207 on 1984 Assessed Valuation of $680,116,940 at 958 Collection ............................................... 1,425,967 $2,335,483 TAX ADEQDACY General Obligation Debt Service Requirements for Fiscal Year Ending 9/30/86, including These Bonds, Series 1985 @ 108 for purpose of Illustration ......................................... $2,187,768 Interest & Sinking Fund Balance estimated as of 9/30/85 ................................. $ 834,610 Interest 6 Sinking Fund Tax Levy of $0.21 on 1984 Assessed Valuation of $680,116,940 @ 95$ Collection Produces .............................................. 1,356,833 $2,191,443 CZTY SALES TAX The City of La Porte adopted the provisions of Article 1066c, VTCS, Section 9, which authorizes the collection of a 18 city sales tax. Net collections for the past several years are as follows: Calendar Total Calendar Total Year Collected Year Collected 1977 $252,773 1962 $ 663,859 1978 386,060 1983 592,191 1979 ~ 418,746 1984 666,437 1980 499,312 ~ 1985 (thru 7/31) 201,969 1981 627,857 GENERAL OBLIGATION BONDS AUTHORIZED HUT UNISSUED Date of Authorized Author- Amount This But ization Purpose Authorized Issue Unissued 5/15/71 Fire Station $ 100,000 $ -0- $ 100,000 6/15/85 Street Improvements 2,500,000 1,000,000 1,500,000 6/15/85 Drainage Improvements 3,000,000 1,000,000 2,000,000 6/15/85 Sanitary Land Fill 4,000,000 -0- 4,000,000 6/15/85 Park Improvements 2,500,000 2,000,000 500,000 6/15/85 Gymnasium 1,500,000 -0- 1,500,000 6/15/85 Fire Station 550,000 550,000 -0- 6/15/85 Fire Department Training 1,500,000 450,000 1,050,000 $15,650,000 $5,000,000 $10,650,000 ~~ • • PLOATING DENT OUTSTANDING Amount Interest Due Outstanding Notes Payable to Purpose Payable From Rate Date $113,937 Bayshore National Bank Fire Truck General Fund 7.58 7/1/86 $ 62,135 La Porte State Bank Ambulance General Fund 8.68 8/1/87 ESTIMATED DIRECT S OVERLAPPING DEBT STATEMENT Percent Amount Net Debt Over- Over- Political Subdivision Amount As of lapping lapping Harris County $961,579,907(1) 12/31/83 0.978 $ 9,328,295 Harris County Flood Control District 222,205,441(2) 10/01/84 0.978 2,155,392 La Porte I.S.D. 18,009,435 7/31/85 33.948 6,112,402 Port of Houston Authority 86,355,000 1/01/83 0.978 837,644 San Jacinto Jr. College District 19,509,042 8/31/83 4.798 934,483 Total Overlapping Net Debt ..... ................. ............ ............. $19,368,216 CITY OF LA PORTE ............... ................. ............ ............. 14.597,475 Total Direct and Overlapping Net Debt ........... ............ ............. $33,965,691 Ratio of Total Direct and Overla pping Net Debt to 1984 Assessed Valuation ........... ................. ............ ................. 4.998 Total Direct and Overlapping Net Debt per Capita ............ ................. $1,324 Assessed Valuation per Capita .. ................. ............ ................. $26,510 (1) Includes the following: $25,000,000 Road Bonds, Series 1984-A, dated 1/1/84; 525,000 Road Bonds, Series 1984-B, dated 6/1/84; $25,000,000 Series 1984-C dated, 12/1/84; $5,000,000 Permanent Improvement Bonds, Series 1984-A, dated 1/1/84; $5,000,000 Permanent Improvement Bonds, Series 1984-8, dated 6/1/84; $10,000,000 Series 1984-C dated 12/1/84; and the following Toll Road Uninvited Tax and Sub- ordinated Lien Revenue Bonds: $100,000,000 Series 1985; $50,000,000 Series 1985-A, dated 6/5/85; $50,000,000 Series 1985-B, dated 6/5/85, $50,000,000 Series 1985-C, dated 6/5/85; $50,000,000 Series 1985-D, dated 6/5/85; $50,000,000 Series 1985-E, dated 6/5/85; $25,000,000 Road Bonds, Series 1985-A, and $10,000,000 Permanent Improvement Sonds, Series 1985-A (2) includes $10,000,000 Bonds, Series 1984-C dated 12/1/84 and $15,000,000 Flood Control District Bonds, Series 1985-A. • • C> TWENTY MAJOR TAXPAYERS Taxpayer PPG Industries La Porte Chemicals/B.F. Goodrich National Distillers E. I. du Pont Houston 'Lighting b Power Arco Chemicals Upjohn Co. Lextar Deer Park Inc. Soltex Polymers Syngas fdu Pont) Air Products Trammel Crow Petrolite USS Novamont Diamond Shamrock Rexene Corp. Atlantic Richfield F.M.C. Armak Co. 1984 Assessed Type of Property Valuation Chemical Plant S 44,365,390 Chemical Plant 37,999,220 Chemical Plant 31,752,720 Chemical Plant 31,666,740 Utility 26,101,000 Chemical Plant 19,287,560 Chemical Plant 17,270,110 Chemical Plant 11,792,730 Chemical Plant 11,340,200 Chemical Plant 10,693,500 Chemical Plant 7,442,660 Chemical Plant 6,434,730 Commercial 6,295,670 Chemical Plant 5,855,250 Chemical Plant 5,000,610 'Chemical Plant 3,611,510 Chemical Plant 3,477,660 Acreage, Pipeline 3,124,650 Chemical Plant 2,869,070 Chemical Plant 2,828,560 Total Assessed Valuation of Principal Taxpayers ........................ $289,209,540 Principal Taxpayers as percent of City's Total Assessed Valuation ............. 436 GENERAL FUND REVENUES, EXPENDITORES AND BALANCES - FOUR YEAR RISTORY The following summary of Revenues, Expenses and Balances of Cash and Temporary Invest- ments for the City of La Porte General Fund operation were taken from audits prepared by Eugene Hovey, CPA, La Porte, Texas. Revenues Taxes* Licenses & Permits Intergovernmental Revenues Charges for Services Fines & Forfeitures Miscellaneous Revenues Total Revenues Expenses Fire Police Administration Public works Engineering Parks S Recreation Total Expenses Excess of Revenue over Expenses Balances of Cash ~ Temporary Investments Fiscal Year Ended 9/30 1984 1983 1962 1981 $7,916,186 $7,263,411 $6,702,936 $5,691,515 187,357 128,402 108,844 73,902 270,429 213,491 177,191 176,342 956,750 555,269 437,405 476,584 249,094 210,057 209,152 127,376 399,812 377,036 768,647 607,657 $9,969,628 $8,747,666 $8,404,175 $7,153,376 $ 807,104 $ 565,331 $ 581,872 $ 470,229 1,982,333 1,626,099 1,300,460 1,141,110 1,808,598 2,237,745** 1,838,168 1,194,460 3,214,207 2,524,390 2,877,990 2,175,520 597,933 969,301 437,026 350,333 780.811 637,555 722,400 556,584 $9,190,986 $8,060,421 $7,757,866 $5,888,236 $ 778,642 $ 687,245 $ 646,309 $1,265,140 $3,847,199 $1,870,478 $2,421,362 $3,897,000 * Includes ad valorem, industrial district in-lieu payments, franchise and City sales taxes. ** Includes $341,790 expenditure for a fire truck. • • WATERWORKS AND SEWER SYSTEM REVENUE BONDS PRINCIPAL REPAYMENT SCHEDULE Fiscal $6,000,000 Bonds Year Series 1985 Ending Principal Repay- Outstanding 9 30 ment Schedule Debt 1986 5300,000 $5,700,000 1987 ~ 300,000 5,400,000 1988 300,000 5,100,000 1989 300,000 4,800,000 1990 300,000 4,500,000 1991 300,000 4,200,000 1992 300,000 3,900,000 1993 300,000 3,600,000 1994 300,000 3,300,000 1995 300,000 3,000,000 1996 300,000 ~ 2,700,000 1997 300,000 j `, 2,400,000 1998 300,000 !' ,` 2,100,000 1999 300,000 ~/ 1,800,000 2000 300,000 ~,~ /~ ~ 1,500,000 2001 300,000 1,200,000 2002 300,000 ~~ 900,000 2003 300,000 ~ 600,000 2004 300,000 ~ 300,000 2005 300,000 ~ ~~ -0- ~~ Average Maturity on Outstanding Bonds, .~` including These Bonds, Series 1985 ........................ ~........... 10.00 Years WATERWORKS AND SEWER SYSTEM REVENUE BONDS DEBT SERVICE REQUIREMENT SCHEDULE Fiscal Year 9 30 Principal Interest* 1986 $300,000 ~ $585,000 1987 300,000 555,000 1988 300,000 525,000 1989 300,000 495,000 1990 300,000 965,000 1991 300,000 435,000 1992 300,000 405,000 1993 300,000 375,000 1994 300,000 345,000 1995 300,000 315,000 1996 300,000 285,000 1997 300,000 255,000 1998 300,000 225,000 1999 300,000 195,000 2000 300,000 165,000 2001 300,000 135,000 2002 300,000 105,000 2003 300,000 75,000 2004 300,000 45,000 2005 300,000 15,000 *Interest Rate of 108 used for purposes of illustration. air Total $885,000 855,000 825,000 795,000 765,000 735,000 705,000 675,000 645,000 615,000 585,000 555,000 525,000 495,000 465,000 435,000 405,000 375,000 345,000 315,000 • • UTIILTY DEPARTMENT (As of 7 31 85) Waterworks and Sewer System Revenue Bonds Outstanding (the Series 1985 Bonds) ...................................................................$6,000,000 ~ecial Fund Balances Interest and Sinking and Reserve Fund ......... $ 442,500 Operating Fund ............................ 1,788,745 ' Total Special Funds ........................................ $2,231,245 * On August 16, 1985 the City defeased $75,000 waterworks and Sewer System Revenue Bonds, Series 1965 (the "Defeased Bonds") by depositing into a special escrow account U.S. Government securities in an amount sufficient to meet the debt service payments on the Defeased Bonds as they become due. In the opinion of Bond Counsel, as a result of the defeasance, the Defeased Bonds are no longer payable from the net revenues of the System, but are payable solely from the principal of and interest on the U.S. Government securities and cash held for such purposes by the escrow agent, and the first lien on and pledge of the net revenues of the System for the payment of the principal and interest on the Defeased Bonds are discharged. WATERWORKS AND SEWER SYSTEM REVENUE BONDS AUTHORIZED BUT UNISSUED Date of Authorized Author- Amount This But ization Purpose Authorized Issue Unissued 6/15/85 Waterworks System $ 800,000 $ -0- $ 800,000 6/15/85 Sewer System 8,550,000 6,000,000 2,550,000 59,350,000 $6,000,000 $3,350,000 WATERWORKS AND SEWER SYSTEM OPERATING STATEMENTS The following information was taken from the City's Audit Reports as prepared by Eugene Hovey, CPA, La Porte, Texas. Fiscal Year Ended September 30 1984 1983 1982 1981 1980 Revenues $3,396,090 $2,140,973 $2,211,038 $1,564,404 $1,219,121 Expenses 1,732,453 1,502,478 1,239,205 1,044,443 911,983 Available for Debt Service.........: $1,663,637 $ 638,495 $ 971,833 $ 519,961 $ 307,138 The average annual debt service requirements on the Bonds (assuming an interest rate of 108) is $600,000; the maximum annual debt service requirements on the Bonds at an assumed rate of 108 occurs in the fiscal year ending 9/30/86. The net revenues avail- able for debt service for the fiscal year ending 9/30/84 are 2.77 times the average annual debt service requirements and 1.88 times the maximum annual debt service re- quirements. CUSTOMER COUNT Fiscal Year Ended September 30 1989 1983 1982 1981 1980 1979 Water 7,248 6,426 6,058 5,695 5,075 3,958 Sewer 6,977 6,426 6,058 5,663 4,855 3,688 WATER AND SEWER RATES - RESIDENTIAL AND COMMERCIAL (All customers are billed monthly) Water: Sewer: First 2,000 gallons ...... .... $4.50 (Minimum) Over 2,000 gallons ..... .$1.60 per 1,000 gallons $4.25 flat rate plus 708 of net water bill. ~( • WATERWORKS AND SEWAGE TREATMENT FACILITIES The City currently owns and operates two waste disposal treatment plants, a 2.5 million gallons per day (mgd) plant and a 100,000 gallons per day (gpd) plant. with a portion of the proceeds from the sale of its Revenue Bonds, the City will construct a 1.6 mgd expansion to its major sewage treatment plant. After completion of the expansion, the City will then have a total sewage treatment facility of 4.2 mgd. In addition, with a portion of the proceeds from the sale of the Bonds, the City will construct a major trunk line to serve the College View subdivision. After completion of the needed facility, the City will have sufficient sewage treatment capacity to serve a population of approximately 42,000. The City currently owns and operates eight water wells having a combined total capa- city of 8.0 mgd. The City's water storage facilities include seven ground storage tanks, having a total capacity of 1.85 million gallons and two elevated storage tanks having a total combined capacity of 950,000 gallons. The City's water supply facilities are adequate to serve a population of approximately 60,000. The financial information contained on the following pages are excerpts from the City of La Porte's Audit Report for the fiscal year ending September 30 ,' 1984 as prepared by: Eugene Hovey, P.C. Certified Public Accountant La Porte, Texas This information is not intended to be a complete statement of the City's financial condition. A complete Audit Report is available upon request to: Moroney, Beissner ~ Co., Inc. Financial Advisor to the City ~~ ~ • SELECTED PROVISIONS OF THE REVENUE BOND ORDINANCE The Revenue Bond Ordinance (the "Bond Ordinance") authorizes the issuance and sale of the Bonds and prescribes terms, conditions and provisions for the payment of the principal of and interest on the Bonds by the City. Set forth below is a summary of certain provisions of the Bond Ordinance. Paragraph headings are supplied for ease of reference and are not contained in the Bond Ordinance. Such summary is not a complete description of the entire Bond Ordinance and is qualified by reference to the Bond Ordinance, copies of which are available from Moroney, Beissner 6 Co., Inc., the City's Financial Advisor, upon request. nefi~t}inns The following terms shall have the respective meanings specified: (a) The term "Additional Bonds" means the additional bonds and other evidences of indebtedness which the City reserves the right to issue. (b) The terms "interest and Sinking Fund and "Reserve Fund" mean the funds provided for in this Ordinance. (c) The term "Bonds" shall mean the $6,000,000 of Bonds authorized by this Ordinance. (d) The term "City" refers to the City of La Porte, Texas, or where appropriate to the City Council thereof. le) The term "City Council" shall mean the City Council of the City. (f) The term "Net Revenues" as used in this Ordinance shall mean the gross revenues of the System less the reasonable expenses of operation and maintenance, including all salaries, labor, materials, repairs and extensions necessary to render efficient service; provided, however, that only such repairs and extensions, as in the judgment of the City Council, reasonably and fairly exercised, are necessary to keep the plant or utility in operation and render adequate service to the City and the inhabitants thereof, or such as might be necessary to meet some physical accident or condition which would otherwise impair the Bonds authorized by this Ordinance and any additional bonds permitted to be issued hereunder, shall be deducted in determining "Net Revenues." (g) The term "Paying Agent/Registrar" shall mean, initially, First City National Bank of Houston, Houston, Texas, or any successor appointed hereunder in its capacity as such. (h) The term "System" as used in this Ordinance shall mean the City's Waterworks and Sewer System, including all present and future extensions, additions, replacements and improvements thereto. (i) The term "System Fund" shall mean the fund provided for in this Ordinance. Pledge of Revenues The Bonds, any Additional Bonds and the interest on all such Bonds, are and shall be payable from and secured by an irrevocable first lien on and pledge of the Net Revenues of the System, and the Net Revenues are hereby pledged irrevocably for the payment and security of the Bonds, any Additional Bonds and the interest on all such Bonds. Rate Covenant The City covenants and agrees with the holders of the Bonds and Additional Bonds, if and when issued, that it will (a) fix and maintain rates and collect charges for the facilities and services afforded by the System which will provide revenues sufficient at all times: (1) To pay all operation, maintenance, depreciation, replacement and betterment charges of the System; (2) To establish and maintain the Interest and Sinking Fund and Reserve Fund; . ~~ • • (3) To generate in each year Net Revenues equal to one and twenty-five hundredths (1-25/100) times the maximum annual requirement for the payment of the principal of and interest on the Bonds and any Additional Bonds at the time outstanding and payable from the revenues of the System (although amounts shall be paid into the interest and Sinking Fund only in accordance with this Ordinance); and (9) To pay all indebtedness other than bonds outstanding against the System as and when the same become due; and (b) deposit as collected all revenues derived from the operation of the System into the System Fund which shall be kept separate and apart from all other funds of the City. '" Flow of Funds Interest and Sinking Fund From the Net Revenues available in the System Fund, the City shall make substantially equal monthly payments into the Interest and Sinking Fund during each year in which any of the Bonds are outstanding, commencing with the date of delivery of the Bonds to the initial purchasers thereof, in an aggregate amount equal to one hundred percent (1008) of the amounts required to meet the interest and principal payments falling due on or before the next maturity date of the Bonds. The City shall, at least five days prior to March 15, 1986 and each September 15 and March 15 thereafter deposit into the Interest and Sinking Fund any additional Net Revenues available in the System Fund which may be necessary to pay in full the interest on and principal, if any, coming due on such September 15 and March 15. Reserve Fund There shall be accumulated in the Reserve Fund an amount equal to the maximum annual principal, and interest requirements on the Bonds. Such amount shall be accumulated by the deposit into the Reserve Fund in each year twenty-five percent (258) of the amount required to be deposited into the Interest and Sinking Fund and such deposit shall be in substantially equal monthly installments commencing with the date of delivery of the Bonds to the initial purchasers thereof.* The Reserve Fund shall be used to pay the principal of and interest on the Bonds at any time when there is not sufficient money available in the Interest and Sinking Fund for such purpose. *As of September ...., 1985, the City had on deposit in the Reserve Fund $442,500, an amount equal to 509 of the estimated maximum annual debt service requirements on the Bonds (occurring in 1986). Additional Parity Bonds In addition to inferior lien bonds authorized by Article llllb, Vernon's Texas Civil Statutes, as amended, the City expressly reserves the right hereafter to issue additional parity bonds and other evidences of indebtedness now or hereafter authorized by the Legislature of Texas, (collectively, the "Additional Bonds") and the Additional Bonds, when issued, may be secured by and payable from a first lien on and pledge of the Net Revenues of the System in the same manner and to the same extent as are the Bonds authorized by this Ordinance, but subject to the remaining provisions hereof, and the Bonds authorized herein and the Additional Bonds may in all respects be of equal dignity. It is provided, however, that no Additional Bonds shall be issued unless: (a) An independent firm of certified public accountants, based upon an annual audit of the books of the System, certifies that the net earnings of the System for _ the fiscal year next preceding the month in which the ordinance authorizing such Additional Bonds is adopted were equal to each of the following determined independently: (i) at least one and one-half (1-1/2) times the average annual requirements for the payment of principal and interest on the then outstanding bonds and other evidences of indebtedness payable from the revenues of the System and on such Additional Bonds, when issued, sold, and delivered; and ~y • • (ii) at least one and twenty-five hundredths (1-25/100) times the maximum annual requirement for the payment of principal and interest on the then outstanding bonds and other evidences of indebtedness payable from the revenues of the System and on such Additional Bonds, when issued, sold and delivered; provided, however, should the certificate of the accountant certify that the net earnings of the System for the fiscal year covered thereby were, in either case, less than required above, and a change in the rates and charges for services afforded by the System became effective at least sixty (60) days prior to the scheduled date of adoption Hof the ordinance authorizing such Additional Bonds, then such Additional Bonds may nevertheless be issued if an independent engineer or engineering firm having a favorable reputation with respect to such matters certifies that, had such change in rates and charges been effective for the fiscal year covered by the accountant's certificate, the net earnings for the System for the fiscal year covered by the accountant's certificate would have met the tests specified in (i) and (ii) above. The term "net earnings" as used in this Section shall mean all of the net revenues of the waterworks and Sewer System, exclusive of income received specifically for capital items, after deduction of the reasonable expenses of operation and maintenance of the System excluding expenditures which under standard accounting practice should be charged to capital expenditures or depreciation. (bI Said Additional Bonds are made to mature on March 15 in each of the years in which they are scheduled to mature; and (c) The Interest and Sinking Fund and the Reserve Fund each contain the amount then required to be on deposit therein. (d) The Ordinance authorizing the issuance of such Additional Bonds provides that the City shall establish a Reserve Fund for such Additional Sonds by any method or combination of methods that the City deems reasonable and appropriate provided thatr (i) the amount of such Reserve Fund (or coverage of any surety bond in lieu thereof) shall at least equal the maximum annual debt service requirements of such Additional Aonds, not to exceed the maximum permitted by applicable regulations, procedures or published rulings of the Internal Revenue Service (the "Reserve Minimum"), (ii) if any Cash Reserve Fund is funded by making transfers of Net Revenues in the System Fund, such transfer shall be made each month in an amount reasonably sufficient to reach the reserve minimum within a period of not more than five years after any such Additional Bonds are sold and delivered and (iii) any such Cash Reserve Fund shall be for the equal benefit of the owners of (x) the Bonds, (y) such Additional Bonds and (z) any Additional Bonds thereafter issued. Maintenance and Operation-Insurance The City shall maintain the System in good condition and operate the same in an efficient manner and at a reasonable cost. So long as any of the Bonds are outstanding, t~ ee,~s~to ~mcaintain insurance on the System, for the benefit of the registere owner or'-ow,~`e ` bkre~Bonde~'E°` an n~ n-~'amolrrrt~rha<~a.lly would be carried by private companies engaged in a similar type of business in the same area. This Ordinance shall not be construed as requiring the City to expend any funds which are derived from sources other than the operation of the .System, but nothing herein shall be construed as preventing the City from doing so. Records and Accounts The City shall keep proper books of records and accounts, separate from all other records and accounts, in which complete and correct entries shall be made of all transactions relating to the System. Upon written request made not more than 60 days following the close of the fiscal year, the City shall furnish to any registered owner of any of the Sonds, complete financial statements of the System fn reasonable detail covering such fiscal year, certified by the City's Auditor. Any registered owner or owners of 258 of the Bonds at the time outstanding shall have the right at all reasonable times to inspect the System and all records, accounts and data of the City relating thereto. I~ ~ ~ `~~ t ~~ f Sr • Additional Covenants The city hereby further covenants as follows: (a) That it has the lawful power to pledge the revenues supporting the Bonds and has lawfully exercised said power under the Constitution and laws of the State of Texas, including said power existing under Article 717k, Revised Civil Statutes of the State of Texas, as amended; that the Bonds issued hereunder shall be ratably secured by said pledge of income, in such manner that one Bond shall have no preference over any other Bond. (b) That, other than for the payment of the Bonds herein authorized, the rents, revenues and income of the System have not in any manner been pledged to the payment _ of any debt or obligations of the City or of the System. (c) That, so long as any of the Bonds or Additional Bonds remain unpaid, the City will not sell or encumber the System or any substantial part thereof, and that it will not encumber the revenues thereof unless such encumbrance is made pursuant to this Ordinance or is junior and subordinate to all of the provisions of this Ordinance. (d) That no free service of, the System shall be allowed, and should the City or any of its agencies or instrumentalities make use of the services and facilities of the System, payment of the reasonable value thereof shall be made by the City out of funds from sources other than the revenues and income of the System. (e) To the extent that it legally may, the City further covenants and agrees that, so long as any of the Bonds or any interest thereon is outstanding, no franchise shall be granted for the installation or operation of any competing system, that the City will prohibit the operation of any such system other than those owned by the City and the operation of any such system by anyone other than the City is hereby prohibited. Special Obligations The Bonds are special obligations of the City payable from the pledged revenues and the registered owner thereof shall never have the right to demand payment thereof out of funds raised or to be raised by taxation. o~ • GENERAL INFORMATION LOCATION The City of La Porte covers an area of 17.48 square miles located in the southeast quadrant of Harris County and is approximately twenty freeway minutes from Houston. La Porte is bounded on the North by the Houston Ship Channel, and on the east by Galveston Bay. The nation's largest concentration of petrochemical plants border the City on pits north and south sides. La Porte City Hall La Porte Bayshore Area Profile Located some 20 miles southeast of Houston on Galveston Bay in Harris County are the three communities that make up the La Porte Bayshore Area: La Porte, Morgan's Point and Shoreacres. The area has a combined population of approximately 35,000, of which 24,785 are located in the City of La Porte. Though much of the image of this area is industrial, the La Porte-Bayshore area is still characterized by an expanse of resort homes. Because of this, and the metropolitan advantages of Houston 30 minutes away, La Porte is one of only a few cities in the metropolitan Houston area that offers this favorable combination. The City of La Porte operates its own municipal airport as well as a municipal swimming pool, civic center and public works department. Harris County This 1,723 square mile county is a leading oil, gas and petrochemical area, having over $439 million average annual production of petroleum, natural gas and natural gas liquids. It has more than 2,800 manufacturing plants; the nation's largest concentration of petrochemical plants, the third largest United States seaport; and is a corporate management center. A significant part of the County's major employers, manufacturers, education and financial institutions are located in Houston, the County seat. Residential construction completed for the twelve month period through December 31, 1984 exceeded $1.9 billion; non-residential construction awarded for the same period was over $2.1 billion. As of June 30, 1985, 263 banks held combined deposits of $38.5 billion. The Texas Medical Center, located in Harris County, is one of the nation's largest, providing medical care and education opportunities. Harris County's 64 hospitals have 16,922 beds, of which 4,589 are in the Texas Medical Center. Harris County's General Obligation Bonds are rated "Asa" by Moody 's investors Service, Inc. and "AAA" by Standard 6 Poor's Corporation. a~ • • ~~ .1 Transportation State Highway 225 provides access to the City on its north aide and connects on the west with Interstate 610, a multi-lane limited access freeway which encircles the City of Houston. State Highway 146, which extends into Northeast Texas, allows access from the south through the City. Air transportation is accessible through Houston Intercontinental and Hobby Airports. The City-owned La Porte Municipal Airport provides private and chartered air transportation through a fully approved FAA facility. Railway transportation is supplied by six railroads, including the Southern Pacific Lines. There are several motor freight lines which adequately fill the need for truck trasnportation. The Houston Ship Channel, which runs along the northern portion of the District, provides deep water ocean-going transportation from the Intracoastal Canal to the Port of Houston. President Wilson officially opened the Houston Ship Channel to deep sea ships on November 10, 1914. It today leads the nation in foreign trade tonnage. The Industrial Zones In 1958 the City of La Porte created an industrial Zone adjacent to the City which presently encompases approximately 5,500 acres of land north of Highway 225 and bordering the Houston Ship Channel. The City annexed sufficient land to completely encircle this industrial Zone, protecting this Zone from annexation by any other municipality. The City entered into contracts with all of the Industries located in the Zone whereby the City annexed a portion of the total value of each industry with the remainder -constituting protected Industrial Districts. In addition to the Industrial Zone north of Highway 225, which is referred to as the "Battleground Industrial District," the City contains an Industrial Zone on its south side originally created in 1970 encompassing approximately 2,500 acres of land which is referred to as the "Bayport Industrial District." These Industrial District Contracts are authorized by Texas State Statutes. d~ • • The City and the industries listed below, many of which have come to the Industrial Zones since the original contracts, are presently under contracts which extend to January 1, 1987. Under the terms of the current contracts, the City annexed 258 of the value of each industry on which the industry pays full City tax each year. The remaining 758 of the total value constitutes the protected Industrial Districts on which the industries make payments to the City each year in lieu of taxes. These an- nual in lieu payments are in an amount which, when added to the full City taxes on the annexed portion, equal 458 of what the City's taxes on the industry would be if 1008 of the industry were in the City. Under the City Charter and State statutes, the City of La Porte has the authority simply by ordinance of the City Council to annex additional areas. In the past, the City, in order to encourage industrial development in the area, has annexed a strip surrounding the industries identified herein and executed contracts with each separate industry as described above. it is anticipated that the present contracts which ex- pire on January 1, 1987 will be renewed for an additional seven year period, at which time the City will expand its annexation to again include at least 258 of all taxable values in the industrial area. The City, of course, has the right to renegotiate their contracts in 1986 on any basis acceptable to the City and industry; however it would be highly unlikely that the percentage to be annexed would be less than 258. Listed below is a schedule of the 1983 payments received and the 1984 payments which are in the process of being collected. 1983 1984 In Lieu City In Lieu City Industry Payments Taxes Payments Taxes E. I. du Pont de Nemours $440,926 $226,264 $466,330 $224,834 Diamond Shamrock Corp. 541,156 5,031 543,411 7,938 Soltex Polymers 263,023 76,993 276,608 75,924 Syn Gas Co. 241,943 53,587 267,494 52,843 National Distillers 221,189 163,233 338,955 225,444 USS Novamont 175,147 33,750 175,051 35,504 Houston Lighting ~ Power 169,865 135,703 183,332 134,919 Air Products Co. 165,201 50,803 195,902 45,687 Upjohn Co. 118,247 129,345 100,184 122,618 interox America 143,140 45 135,062 44 Arco Chemicals 119,692 138,870 .. 106,007 136,942 Lubrizol 88,127 21,072 91,624 21,137 National Petro-Chemical 81,435 65,387 -0- -0- Deer Park, Inc. 54,856 81,649 69,887 80,515 Texas Alkyls 69,453 13,375 69,262 13,189 Rohm 6 Haas Corp. 163,886 5,985 165,465 5,878 Lextar Company, Inc. 42,586 -0- 39,143 -0- Armak Company 52,835 20,083 48,442 20,083 Petrolite 44,480 40,989 46,193 41,572 Big Three industries 40,573 16,650 49,365 16,517 Quaker Oats Co. 1,623 26,946 (8,593) 15,624 Goodyear Tire & Rubber Co. 15,537 10,991 9,798 10,932 Airco, Inc. 10,448 11,272 13,042 11,157 Cardox-Allengheny 6,235 5,981 - -11,164 594 B.F. Goodrich (La Porte Chemicals) 8,513 266,400 674 262,700 S.W. Chemical b Plastic 536 2,871 (234) 3,077 Grief Brothers 5,633 2,960 6,024 2,919 M.G. Burdett Gas Products 1,038 8,310 (1,141) 2,075 Phillips Petroleum 3,283 4,104 3,701 6,475 Ohmstede Machine Works 3,116 2,298 3,876 2,588 Pearsall Chemicals 1,069 2,231 2,059 2,586 Battleground Water Co. 901 208 988 205 Windward Coors 896 914 1,614 902 Thiocol 346 1,091 104 1,588 Union Carbide 46,365 4,335 44,223 4,315 E1 Paso Polyfins (Dart) -0- 12,215 -0- -0- FMC Cozp. -0- 11,303 (11,204) 20,370 Atlantic Richfield -0- 11,219 (12,202) 22,185 Liquid Aiz Corp. -0- 6,390 (8,104) 14,735 Friendswood Development Corp. -0- 20,977 -0- -0- Westinghouse, Inc. -0- 124 -0- -0- Bayport Machine. -0- 586 -0- -0- Browning Ferris Ind. -0- 12,604 -0- -0- Cajun Industries -0- 113 -0- -0- Celanese Corp. of America -0- 1,080 -0- -0- Chevron Chemical Co. -0- 9,065 -0- -0- Exxon Pipeline -0- 767 -0- -0- Totals ................. $3,343,299 $1,710,669 $3,423,506 $1,646,615 a9 • Utl • The City's residents are provided electricity, gas and telephone service by Houston Lighting and Power Company, Entex, Inc., and Southwestern Bell Telephone, all as part of the City of Houston system. Water and sewer facilities are provided by the municipally-owned systems. Financial Institutions The following banking facilities are within the City. Deposits as of June 30, 1985 Bayshore National Sank of La Porte ..........$ 73,780,504 Bayshore Savings Association ................ 40,225,600 La Port State Bank ....................... 27,200,230 Bayport National Bank. .................. 16,221,171 Total Combined Deposits ..................$157,427,505 Residential Development Residential subdivisions within the City of La Porte are well planned, providing complete utility services and hard surface streets with curbs and gutters. Homes are currently priced from $60,000 to $150,000 with construction progressing at a moderate rate. Year 1977 1978 1979 1980 1981 1982 1983 1984 1985 (thru 7/31/85) Commercial Development addition, there are several attractive shopping centers within the City. Value of Building Permits S 9,344,392 13,937,161 14,121,366 8,471,468 15,662,995 31,294,594 26,884,684 39,758,626 4,660,134 The residential and commercial areas of the City of La Porte form the core of the City, with the Industrial Districts flanking the City on the north and south. The cen- tral business district lies east of Highway 146, which crosses the City from north to south, and contains restaurants, shopping facilities and automobile dealerships. In Following are the values of commercial building permits issued by the City since 1977. Year 1977 1978 1979 1980 1981 1982 1983 1984 1985 (thru July) 3~ Value of Commercial Building Permits $1,099,977 3,657,247 3,004,022 2,530,067 9,164,972 9,880,675 5,789,317 6,930,986 2,926,733 i i • • Educational Facilities The La Porte Independent School District provides the residents of the City of La Porte with excellent school facilities. The School District, which operates five elementary schools, two junior high schools and one senior high school, is fully accredited by the Texas Education Agency and the Southern Association of 'Colleges and Schools. All of the school facilities are fully air-conditioned and centrally heated and are furnished with modern educational equipment. As of January 1984 the School District had a student enrollment of 6,779 and the 1983 Assessed Valuation is in excess of S2 billion. The School District carries a rating _ of "Aa" by Moody 's Investors Service, Inc. and "AA" by Standard b Poor's Corporation. La Porte I.S.D. Main Campus Higher Education Facilities Higher education is provided by the San Jacinto Junior College District which encompasses about 289 square miles in southeast Harris County, including the City of La Porte. The College District has three campuses; the Main Campus located adjacent to the City of La Porte on its west side; the North Campus located north of the Houston ship channel, and the South Campus located just southwest of Pasadena within the city limits of the City of Houston. San Jacinto College Offers two year educational programs leading to Associate of Arts and Associate of Science Degrees. In nearby Houston are the University of Houston, Rice University, Texas Southern University, St. Thomas University and Houston Baptist College, all of which offer full four year as well as post-graduate programs. ~~ • • Industrial Development There are approximately 5500 acres of industrial development along the fifty-mile Houston Ship Channel within La Porte's "Battleground Industrial District." These re- fineries and other industries contribute largely to the Port of Houston's position as the third largest port in the United States. The majority of the employers in the Industrial Districts are chemical and petrochemi- cal related industries. These companies collectively have in excess of 4,000 employees with an 'annual payroll of approximately $120 million. Following are several of the major employers in the Industrial Districts. No. of Approximate Employer Employees Annual Payroll E.I. du Pont de Nemours 1,100 $48,000,000 U.S. Industrial (National Distillers and National Petrochemical) 750 20,000,000 Dow Chemical, USA 420 15,800,000 Fina Oil S Chemicals (Casden Chemical Division) 170 5,000,000 Lubrizol 150 24,300,000 Greif Brothers 125 2,250,000 B.F. Goodrich (La Porte Chemicals) 150 4,750,000 Air Products 135 5,062,500 USS Chemicals 99 3,300,000 PPG Industries 114 3,600,000 Akzo Chemie America 95 2,850,000 Petrolite Corp. 86 2,400,000 Texas Alkyls 88 2,000,000 Rohm & Haas, Inc. 80 2,175,000 Goodyear Tire b Rubber 66 1,900,000 Ohmstede Machine Works 75 2,160,000 Following are aerials of some of the industries located in the "Battleground Indus- trial District", north of the City of La Porte, and the "Baypo rt Industrial District" in the south. E. I. du PONT de NEMOURS 6 COMPANY's Houston plant manufactures agricultural and in- dustrial chemicals, i.e., fungicides, herbicides, and insecticides, primarily intended for commercial scale application. The E. I, du Pont Houston Plant employs 1,066 people at an annual payroll of approximately $48 million. E. I. du Pont de Nemours 6 Company In Battleground Industrial District 3a • ~~ • • U.S. Industrial In Battleground Industrial District D. S. INDUSTRIAL (National Distillers and National Petrochemical) are producers of chemical and petrochemical products. The company currently has 750 employees and an annual payroll of approximately $20 million. Dow Chemical USA (formerly Upjoha Corporation) In Battleground Industrial District DOw CHEMICAL USA, formerly IIpjohn Co., manufactures specialty chemicals. This plant employs 920 people with an annual payroll of approximately .$15,600,000. .._._._ ~y • • Goodyear Tire b Rubber Co. In Bayport Industrial District GOODYEAR'S plant in Bayport produces primarily hydroquinone, a substance used princi- pally in photography and the production of other specialty organic chemicals. The plant is located on a 75 acre tract in Bayport, and currently has 68 employees with annual payroll of approximately $1.9 million. Biq Three Industries Bayport Industrial District _ _ ._. _.. _ 3J~ f • • M 0 ro w 0 C r-i W C C ro u M .C W ~G ~ • The residents of the City of La Porte are provided excellent school facilities by the La Porte Independent School District, which is fully accredited by the Texas Education Agency and the Southern Association of Colleges and Schools. All of the school faci- lities are fully air-conditioned and centrally heated and are furnished with modern educational equipment and aids. Following is a brief description of the District's administrative and educational facilities: Administration - Administration and support facilities contain approximately 42,000 square 5eet, including a transportation center and warehouse building. Elementary Schools - The District operates five elementary schools which have a com- bined total capacity of 4,800. Junior High Schools - There are two junior high schools which have a total student ca-' pacity of 1,600. High School - The District operates one high school which has a student capacity of 2,000. Athletic Facilities - Each of the District's schools has a gymnasium with dressing room facilities for both boys and girls. The La Porte High School campus contains an athletic complex which includes a 8,250 seat stadium, baseball field, a complete field house, tennis courts, and a natatorium. School Facilities Under Construction Facility Lomax Junior High School Projected Student Completion Capacity Date 600 August 1986 Construction Cost $6,571.219 Main School Campus - La Porte Independent School District ~~ • • A aher Educat onal Facil t ea The San Jacinto Junior College District which encompasses approximately 289 square miles in southeast Harris County, including the City of La Porte, provides the residents of the City with higher educational facilities. The College District has three campuses; the Main Campus located adjacent to the City of La Porte on its west side; the North Campus located north of the Houston ship channel, and the •South Campus located just southwest of Pasadena within the city limits of the City of Houston. San Jacinto College Offers two year educational programs leading to Associate of Arta and Associate of Science Degrees. In nearby Houston are the University of Houston, Rice University, Texas Southern University, St. Thomas University and Houston Baptist College, all of which offer full four year as well as post-graduate programs. - San Jacinto Junior College - Maia Campus /0