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Home My WebLink About75-371 10-14-1975RESOLUTION NO. 371 A RESOLUTION by the City Council of the City of Euless, Texas relating to the sale of $1,400,000 General Obligation Bonds, Series 1975 by said City. WHEREAS, Municipal Bond Associates Of Texas, Inc. has heretofore prepared an Official Notice of Sale and Official Statement covering the proposed sale of this issue of bonds on the 21st day of October, 1975; and WHEREAS, the information relating to the financial condition of the City as contained in said Official Statement has been extracted from the Audit Reports of the City's independent Certified Public Accountants, the official records of the City, and from other sources which are considered reliable by this Council; and WHEREAS, it is now proper for this Council to approve said Notice of Sale and Official Statement, there being no fact or factors known to this governing body which are not stated therein which would adversely affect the security of the obligations sought to be sold. NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF EULESS: SECTION 1: The recitals of fact contained in the preamble hereof are found to be true. SECTION 2: The Official Notice of Sale and Official Statement hereto attached are hereby approved. The Mayor is hereby directed to execute the Official Notice of Sale and Municipal Bond Associates Of Texas, Inc. is authorized and directed to cause said instruments to be circulated (showing the Mayor's conformed signature) and distributed in the manner which is customary in the business, so as to insure the obtaining of responsive proposals or bids for the bonds to be offered for sale. PASSED AND APPROVED, this the 14th day of October , 1975. ATTEST: 4.uteeed .../a.rptgug- Mayor, City of Euless, Texas City Secretary, City of Euless, Texas PR City Attorney, City of Euless, (SEAL) ITEM IV. CITY OF EULESS, TEXAS CITY COUNCIL Harold D. Samuels Mayor MEMBERS Mrs. Willie Mae McCormick, Mayor Pro Tem Charles M. Hunt Raymond J. Ozebek Glenn D. Walker Wayne E. Wright W. M. Sustaire Mrs. Della Houy James R. Hickerson City Attorney City Manager City Secretary Director Of Finance M. Robert McFarland CRIBBS, McFARLAND, HOLMAN AND HOLLOWAY Arlington, Texas Consulting Engineers KNOWLTON- RATLIFF- ENGLISH - FLOWERS, INC. Bedford, Texas Bond Legal Counsel DUMAS, HUGUENIN, BOOTHMAN AND MORROW, Attorneys Dallas, Texas Financing Consultants MUNICIPAL BOND ASSOCIATES OF TEXAS, INC. Merrill C. Morong 8703 Hillcrest Road Dallas, Texas 75225 �y e OFFICIAL NOTICE OF SALE $1,400,000 CITY OF EULESS, TEXAS (Tarrant County) , GENERAL OBLIGATION BONDS, SERIES 1975 DATED NOVEMBER 1, 1975 To Be Sold Tuesday, October 21, 1975 at 8:00 PM, Central Time. PLACE AND TIME OF SALE. . . The Mayor and City Council of the City of Euless, Texas will receive sealed bids at the Council Chambers in the City Hall, 201 Ector Drive, in Euless until 8:00 PM Central Time on Tuesday, October 21, 1975, for the above bonds, more fully described in the "OFFICIAL STATEMENT" which is a part hereof. TYPE OF BIDS AND INTEREST RATES. . . The bonds will be sold in one block, all or none, and no bid of less than par and accrued interest will be considered. Bid- ders shall specify the rate or rates of interest the bonds will bear within the following limits: Coupon rates must be in multiples of 1 /8th of 1% or 1 /20th of 1 %; no more than seven interest rates and six coupon changes may be named; and the highest interest rate bid may not exceed the lowest rate bid by more than 2 1/2 %. No coupon rate in excess of 10% will be considered. Within a single maturity, all bonds must bear the same rate and there shall be no graduating or declining coupon rates. Supplemental or zero coupons will not be considered. All bids must be submitted on the "Official Bid Form" without alteration. BASIS OF AWARD. . . For the purpose of awarding the bonds, the interest cost of each bid will be computed by determining, at the rate or rates specified therein, the total dollar value of all interest on the bonds from the date thereof to their respective maturities, and deducting therefrom the amount of the premium bid, if any. The bonds will be awarded to the bidder whose bid on the above computation produces the lowest interest cost to the City. In the event of error in interest cost calculations, the interest rates stated in the "Official Bid Form" will be considered as the correct bid. GOOD FAITH DEPOSIT. . . Each bid shall be accompanied by a bank Cashier's Check or equivalent, payable to the "City of Euless, Texas" in the amount of $28,000 as a Good Faith Deposit. The check of the successful bidder shall be retained uncashed by the City to assure performance of the contract on the part of the successful bidder. Upon delivery and payment for the bonds, this deposit will be applied to the purchase price of the bonds, or returned to the successful bidder, whichever he desires. In the event such bidder should fail or refuse to take up the bonds in accordance with his bid, said check will be cashed and accepted by the City as full and complete liquidated damages. The above men- tioned Cashier's Check may accompany the "Official Bid Form" or it may be sub- mitted separately. If submitted separately, it shall be made available to the City prior to the opening of the bids, and shall be accompanied by instructions from the bank on which drawn which authorize its use as a Good Faith Deposit by the successful bidder who shall be named in such instructions. Checks of unsuc- cessful bidders will be returned to such bidders after the award. PRINTED BONDS. . . The City will furnish printed bonds on lithographed borders which will have imprinted thereon the facsimile signatures of the Mayor and City Secretary, pursuant to Article 717j -1, Vernon's Annotated Texas Civil Statutes.. CUSIP NUMBERS. . . It is anticipated that CUSIP identification numbers will be printed on said 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 re- fusal by the purchaser thereof to accept delivery of and pay for the bonds in accordance with the terms of the purchase contract. All expense in relation to the printing of CUSIP numbers on said bonds shall be paid by the issuer; provided, however, that the CUSIP Service Bureau charge for the assignment of said numbers shall be the responsibility of and shall be paid by the purchaser. LEGAL OPINION. . . The City will furnish a complete transcript of proceedings had incident to the authorization and issuance of the bonds, including the unqualified approving legal opinion of the Attorney General of the State of Texas, to the effect that the bonds are valid and legally binding obligations of the City, and, based upon examination of such transcript of the proceedings, the unqualified approving legal opinion of Messrs. Dumas, Huguenin, Boothman & Morrow, bond counsel, to a like effect and to the effect that the interest on the bonds is exempt from federal income taxation under existing statutes, regulations and court decisions. Messrs. Dumas, Huguenin, Boothman & Morrow did not take part in the preparation of the Official Notice of Sale or the Official Statement nor has such firm undertaken independently to verify any of the infor- mation contained therein, except that, in their capacity as bond counsel, such firm has reviewed the information describing the bonds in such Notice and State- ment and to verify that such description conforms to the provisions of the bond ordinance. The legal fees to be paid Messrs. Dumas, Huguenin, Boothman & Morrow for services rendered in connection with the issuance of the bonds are contingent on the sale and delivery of the bonds. NO- LITIGATION CERTIFICATE. . . The City will execute, and deliver to the success- ful purchaser, a certificate to the effect that no litigation of any nature has been filed or is then pending to restrain or enjoin the issuance or delivery of said bonds or the coupons appertaining thereto, or which would affect the provi- sions made for their payment or security, or in any manner questioning, the validity of said bonds or coupons. PAYING AGENT. . . The successful bidder may name the paying agent for the bonds and coupons, provided that the bank named shall be a major institution in a Federal Reserve City in Texas, and shall be subject to the approval of the City Council. In the event the bank is not named in the bid, as submitted, the suc- cessful bidder shall notify the City Manager or Financing Consultant of the bank desired during business hours of the day following the award. Thereafter, purchaser waives the right of choice, and the City will advise the purchaser of the Paying Agent named. DELIVERY. . . Delivery of the bonds will be made at the expense of the City at either the American National Bank of Austin, or the City National Bank Of Austin, Austin, Texas, as soon as possible after the sale. It is anticipated that deli- very can be made on or about December 2, 1975, and it is expressly understood and agreed that the purchaser will accept delivery and make payment in immediately available funds to the City on that date; or thereafter when tendered for delivery to and including December 16, 1975. If for any reason the City is unable to ten- der the bonds for delivery on or before December 16, 1975, then the purchaser may accept delivery at his option for an additional thirty (30) days. -2 - AUTHENTICITY OF FINANCIAL INFORMATION. . . The financial data and other informa- tion contained in the "Official Statement" have been obtained from the City's records and from the Audit Reports of the City's Independent Certified Public Accountants, and other sources which are believed to be reliable, but is not guaranteed as to accuracy or completeness. RESPONSIBILITY FOR QUALIFICATION OF BONDS FOR SALE IN RESPECTIVE STATES. . . The City assumes no responsibility for qualification of the bonds under the securi- ties 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 exemp- tion from securities registration provisions. ADDITIONAL COPIES OF NOTICE OF SALE AND BID FORM, . Additional copies of the "Official Notice Of Sale ", "Official Statement" and "Official Bid Form" may be obtained from the office of W. M. Sustaire, City Manager, City of Euless, 201 Ector Drive, Euless, Texas 76039, or from Municipal Bond Associates of Texas, Inc., 8703 Hillcrest Road, Dallas, Texas 75225, Financing Consultants to the City. The City reserves the right to reject any or all bids and to waive irregularities, except time of filing. September 23, 1975 /s/ Harold D. Samuels, Mayor City of Euless, Texas OFFICIAL STATEMENT The following Official Statement does not constitute an offer to sell Bonds in any jurisdiction to any person to whom it is unlawful to make such offer in such jurisdiction. No dealer, salesman, or any other person has been authorized to give any information or make any representation, other than those contained herein, in connection with the offering of these Bonds, and if given or made, such information or representation must not be relied upon. The information and expressions of opinion herein are subject to change without notice and neither the delivery of this Official Statement nor any sale made hereunder shall, under any circumstances create any implication that there has been no change in the affairs of the City since the date hereof. OFFICIAL STATEMENT NEW ISSUE, to be sold Tuesday, October 21, 1975 at 8:00 P.M., Central Time INTEREST EXEMPT FROM ALL PRESENT FEDERAL INCOME TAXES $1,400,000 CITY OF EULESS, TEXAS (Tarrant County) GENERAL OBLIGATION BONDS SERIES 1975 Dated November 1, 1975 Maturing Serially March 1, 1976/1997. Coupon bonds of $5,000 denomination. Principal and semi - annual interest (March 1, and September 1,) payable at (A major banking institution in a Federal Reserve city in Texas to be named by the purchaser, subject to the approval of the City of Euless.) First interest coupon (4 months) due March 1, 1976. AMOUNTS AND MATURITIES Coupon Coupon Amount Rate Maturity Yield Amount Rate Maturity Yield $150,000 % 3 -1 -76 % $ 50,000 % 3 -1 -87 % 30,000 % 3 -1 -77 % 50,000 % 3 -1 -88 % 30,000 % 3 -1 -78 % 70,000 % 3 -1 -89 % 30,000 % 3-1-79 % 70,000 % 3 -1 -90 % 30,000 % 3 -1 -80 % 70,000 % 3 -1 -91 % 30,000 % 3 -1 -81 % 90,000 % 3 -1 -92 % 40,000 % 3 -1 -82 % 90,000 % 3 -1 -93 % 40,000 % 3 -1 -83 % 100,000 % 3 -1 -94 % 40,000 % 3 -1 -84 % 100,000 % 3 -1 -95 % 40,000 % 3 -1 -85 % 100,000 % 3 -1 -96 % 50,000 % 3 -1 -86 % 100,000 % 3 -1 -97 % THIS ISSUE is the second installment from the long range, four purpose, $6,125,000 improvement program authorized at an election held December 2, 1972. Proceeds will be applied: $400,000 Streets & Drainage; $300,000 Parks; $550,000 Public Safety Building; and $150,000 Fire Station. After this sale, $3,945,000 will remain authorized and unissued. THESE BONDS, in the opinion of counsel, will constitute direct and general obliga- tions of the City of Euless, payable from ad valorem taxes levied against all of the taxable property located therein within the limits prescribed by law. -4- LEGALITY: To be approved by the Attorney General of Texas, and by Messrs. Dumas, Huguenin, Boothman and Morrow, Attorneys, Dallas, Texas. (Legal opinion printed on the bonds.) PAYMENT RECORD: Neither the City of Euless, nor any of the overlapping taxing units, has ever defaulted. RATINGS: On outstanding bonds: Moody's "A "; Standard & Poor's "A ". Reviews have been requested. DELIVERY: When Issued. Anticipated on or about December 2, 1975. FINANCIAL STATEMENT (As of September 15, 1975) Estimated Actual Value of Taxable Property, 1975 Assessed Valuation, 1975 (65% of actual) General Obligation Debt, including this issue Less: Interest and Sinking Fund NET BONDED DEBT $4,955,000 * 237.135 Ratios: Net Debt to Estimated Actual Values 2.02% Net Debt to Assessed Valuation 3.12% Population: U.S. Census - 1960 4,263 - 1970 19,316 Present Estimate 25,231 Per Capita Assessed Valuation Per Capita Net Debt $5,992.28 $ 186.99 $233,002,846 151,191,100 $ 4,717,865 * The above stated debt does not include $4,585,000 Waterworks & Sewer System Revenue Bonds payable solely from System earnings. ESTIMATED OVERLAPPING DEBT Taxing Body Tarrant County Tarrant County Hospital District Tarrant Co. Jr. College District Hurst- Euless- Bedford I.S.D. Grapevine I.S.D. Total Overlapping City of Euless, including this issue TOTAL DIRECT & OVERLAPPING NET DEBT Net Bonded Debt Amount As Of $ 9,386,386 8 -31 -75 -0- 8 -31 -75 27,349,271 8 -31 -75 26,388,085 8 -31 -75 8,715,888 8 -31=75 4,717,865 9 -15 -75 Ratio to Assessed Valuation 9.45% Per Capita Direct & Overlapping Net Debt $566.08 Applicable Portion Percent Amount 4.89% $ 458,994 4.907. -0- 4.90% 1,340,114 26.46% 6,982,287 8.99% 783.558 $ 9,564,953 100.00% 4.717.865 $14,282,818 VALUATION AND TAX DATA TAX RATE LIMITATION The City of Euless became a home rule Charter City in July 1962, and adopted the constitutional tax rate limit of $2.50 per $100 of assessed valuation for all city purposes. Taxes are payable October 1, each year, and if not paid by January 31, become subject to penalties and interest. No split payments or discounts are allowed. Under contract, the assessment and collection functions are provided by the Hurst - Euless- Bedford Independent School District which performs similar services for the cities of Bedford and Hurst. Tax Year Assessed 10 -1 to Valuation 9 -30 (Basis 65%) 1968/69 $ 48,914,070 1969/70 67,556,170 1970/71 77,401,170 1971/72 81,786,470 1972/73 93,312,960 1973/74 138,068,760 1974/75 1975/76 TAX COLLECTION RECORD Collections Taxes Levied Current Year Levy Total Rate Amount Amount Percent Amount Percent $0.85 * 0.85 0.85 0.85 0.85 * 0.85 415,153 $ 573,039 656,460 694,010 792,068 1,172,770 1 402,888 97.05% $ 410,320 98.84% 543,005 94.75% 551,642 96.277. 630,277 96.01% 651,326 99.22% 679,052 97.84% 699,929 100.85% 769,851 97.20% 786,997 99.36% 070,877 91.31% 1,080,949 92.17% 145,595,360 0.85 1,236,912 1,136,105 91.85% # 1,187,911 96.04% # 151,191,100 0.85 1,285,139 * Include General Equalization. # Incomplete, 11 months to 8- 31 -75. The Interest & Sinking Fund tax rate was $0.23 per $100.00 in all of the above years except 1972 when it was $0.20. INTEREST & SINKING FUND MANAGEMENT ESTIMATE Carry -over Balance, September 30, 1975 Tax Levy $0.23 for 1975/76 @ 95% Collection Total Available Interest & Principal, 1975/76: Outstanding Bonds This Issue, Series 1975 Total Requirements Indicated Balance, September 30, 1976 $233,223 220.958 ** ** Reflects interest at 6 for test purposes, and augmented first principal maturity of $150,000 due 3 -1 -76. ## Equivalent to 32.8% of estimated $345,410 requirement in fiscal 1976/77. (Page 8) -6- $237,135 330.371 $567,506 $4541181 $113,325 ## PRINCIPAL TAXPAYERS - 1975 ROLL Taxpayer Sotogrande Apartment Complex Manning Grinnan Trustee J. P. Farina Development Corporation Continental Telephone & Electronics, Inc. Texas Power & Light Company Ector Square Apartments Southwestern Bell Telephone Company ECC - Corp. (Electronic Controls) Jas. Haddad Investments Paso Del Oeste Apartments Sub -Total - Ten Largest (19.0% of Jack E. Apwisch R Mart Discount Store Wilshire Shopping Center Burgundy Square Apartments Western Hills Inn International Airport Center Passport Inn Euless Square Apartments Spring Valley Apartments Doctor's Community Hospital Type Of Property Residential Apartments Land Land Industrial Plant Electric Utility Residential Apartments Telephone Utility Industrial Plant Residential Apartments Residential Apartments Total Roll) Office &Warehouse Bidgs. Commercial Commercial Residential Apartments Motor Hotel Land Motor Hotel Residential Apartments Residential Apartments General Hospital Total - Twenty Largest (27.7% of Total Roll) SALES TAX By referendum, the City availed itself of the 14 addition to the State Sales tax effective January 1, 1970. Net remittances received have been as follows: Assessed Valuation $ 5,736,640 5,481,300 2,905,550 2,589,700 2,306,750 2,304,050 2,044,140 1,909,000 1,865,900 1,622,130 $28,765,160 1,598,700. 1,567,510 1,539,950 1,347,100 1,325,000 1,286,400 1,240,150 1,064,450 1,056,500 1,052,210 $41,843,130 Fiscal Year 1969/70 (Initial 2 quarters) 1970/71 1971/72 1972/73 1973/74 1974/75 Equivalent To Amount Ad Valorem Rate of $ 54,210 127,981 $0.17 138,686 0.17 185,937 0.20 227,570 0.16 266,098 0.18 DETAIL OF PURPOSE, AUTHORITY FOR ISSUANCE AND REMAINING BONDS UNISSUED This issue, Series 1975, represents the second installment from a new long range improvement program authorized by the voters on December 2, 1972 for the following purposes. Street Improvements & Drainage Parks Public Safety Building Fire Station Total Authorized $2,395,000 3,030,000 550,000 150.000 Series Series Remainder 1973 * 1975 Unissued $480,000 $ 400,000 $1,515,000 300,000 300,000 2,430,000 550,000 -0- - 150,000 -0- $1,400,000 $3,945,000 Total General Obligations $6,125,000 $780,000 * In addition, Series 1973 included the $520,000 remainder from the City's initial $3,250,000 program voted July 11, 1964. -7- Fiscal Yr. To Existing 9 -30 Total 1976 1977 1978 1979 1980 1981 1982 1983 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 ESTIMATED INTEREST & PRINCIPAL REQUIREMENTS (This Issue Computed At 61A For Teat Purposes) 233 , 223 235,135 236,735 233,229 234,592 235,763 231,753 237,402 237,643 242,645 237,335 241,718 240,807 225,038 224,597 228,681 222,512 221,336 234,329 226,698 224,112 221,285 213,215 205,085 196,955 96,525 93,600 95,113 91,392 87,672 88.952 This Issue Interest Principal NEW COMBINED REQUIREMENTS 3 -1 & 9 -1 3 -1 Interest Principal Total $ 70,958 $ 150,000 $ 234,181 $ 220,000 $ 454,181 80,275 78,325 76,375 74,425 72,475 70,200 67,600 65,000 62,400 59,475 56,225 52,975 49,075 44,525 39,975 34,775 28,925 22,750 16,250 9,750 30,000 30,000 30,000 30,000 30,000 40,000 40,000 40,000 40,000 50,000 50,000 50,000 70,000 70,000 70,000 90,000 90,000 100,000 100,000 100,000 3,250 100,000 • 240,410 235,060 229,604 224,017 218,238 211,953 205,002 197,643 190,045 181,810 172,943 163,782 154,113 144,122 133,656 122,287 110,261 97,079 82,948 68,862 54,535 43,215 35,085 26,955 21,525 18,600 15,113 11,392 7,672 3,952 105,000 110,000 110,000 115,000 120,000 130,000 140,000 145,000 155,000 165,000 175,000 180,000 190,000 195,000 205,000 225,000 230,000 260,000 260,000 265,000 270,000 170,000 170,000 170,000 75,000 75,000 80,000 80,000 80,000 85.000 $6,275,077 $1,135,983 $1,400,000 $3,856,060 $4,955,000 Averages: 1976/77 - 1995/96 $343,192 1976/77 - 2005/06 278,563 -8- 345,410 345,060 339,604 339,017 338,238 341,953 345,002 342,643 345,045 346,810 347,943 343,782 344,113 339,122 338,656 347,287 340,261 357,079 342,948 333,862 324,535 213,215 205,085 196,955 96,525 93,600 95,113 91,392 87,672 88.952 $8,811,060 THE CITY THE CITY OF EULESS is located in the heart of the "Southwest Metroplex" in the east central portion of Tarrant County, approximately midway between Fort Worth and Dallas. Situated on State Highways 183 and the Spur 350 Freeway, which are the major east -west thoroughfares between the cities traversing the area north of the West Fork of the Trinity River, Euless has ready access to each. Tref- ficway distances are 19 miles to downtown Dallas, and 15 miles to downtown Fort Worth. Automotive travel time in either instance is some 20 to 25 minutes. Neighboring cities are Arlington to the south, Hurst and Bedford to the west, Colleyville and Grapevine to the north, and Irving, in Dallas County, to the east. More specifically, Euless is actually bounded on the south and in part on the east by the strip annexation of the City of Fort Worth extending to and including its former airport property which adjoins the southeast portion of Euless. Euless embraces an area of 15.8 square miles which has undergone rapid transition from rural to urban characteristics. The City, a community of some 100 in 1950, became a General Law City in 1954, reached a population of 4,263 at the 1960 cen- sus, adopted its Home Rule Charter in 1962, and approved its initial $3,250,000 Capital Improvement Program for eight purposes in July 1964. Subsequent growth to the 1970 census at 19,316 and the present estimated 25,231 is a result of both the maturing of the City government with substantially increased services, and the continuing improvement and construction of traffic arteries serving all por- tions of Dallas and Tarrant counties. 1965 1966 1967 1968 1969 1970 1971 1972 1973 1974 Assessed Valuation (As of Jan 1) $ 30,285,610 41,603,320 * 44,830,590 48,914,070 67,556,170 ** 77,401,170 81,786,470 93,312,960 138,068,760 ** 145,595,360 1975 151,191,100 RECENT ECONOMIC INDICES Building Permit Values (Yrs to 9 -30) $ 3,566,835 2,286,881 8,588,538 8,527,502 10,786,697 4,710,034 10,483,536 7,132,528 7,604,027 5,441,729 Bank Deposits # Dec. 31 $ 8,340,403 7,200,668 8,645,825 13,128,928 10,707,286 13,363,340 15,752,995 19,796,345 25,615,124 29,174,657 Postal Receipts Water (Years To Connections June 30) (September) $102,409 4,124 128,343 4,331 158,417 4,531 168,922 4,858 197,901 5,610 225,645 6,433 245,326 6,745 296,427 7,520 322,202 7,883 369,069 8,070 1,384,403(Aug) 33,965,120(June) 427,559 8,107(Aug) * Basis of Assessment changed from 50% to 657. of estimated actual values. ** General Equalizations. # Include First National Bank and First State Bank, both of which were established in 1962. First State Bank moved into adjoining Bedford in 1972, but is included here for consistent comparison. -9- • r THE CITY - Continued The initial Capital Improvement Program implemented a Comprehensive City Plan 1960 -85, prepared by consultants in long range planning. Following announcement of the site for the Dallas -Fort Worth Regional Airport, a re -study of land use, zoning and other considerations was made in 1967 by independent consultants leading to appropriate revision of the Master Plan and Zoning Ordinance. That study indicated the ultimate "holding capacity ", or population under desirable residential conditions, for the non - airport city area to be in the range of 61,109 minimum, 73,166 probable, and 84,717 maximum. Subsequent adjustments to the land use plan have been based upon scientific studies of the airport noise levels, and the State Highway Department program to up -grade and extend certain traffic arteries. DALLAS -FORT WORTH REGIONAL AIRPORT Euless and its territory are directly involved in the Dallas -Fort Worth joint Regional Airport project. This immense undertaking is the largest airport in the world, with the area of some 17,000 acres providing approximately 10,000 acres for hard -core airport purposes and the additional 7,000 acres being buffer or controlled use zone available for related industry purposes. The site is astride the Dallas County- Tarrant County boundary line and extends north some eight miles from Highway 183 to near the Denton County boundary in Grapevine. Operational status of the first phase began January 13, 1974 with the transfer from Dallas' Love Field of eight major air lines - American, Braniff, Continental, Delta, Eastern, Frontier, Ozark and Texas International. Four terminals (of 13 in the long range plan) are complete and in use. The previous Fort Worth airport property, to the south of Highway 183, is under the new runway pattern and will be converted to industrial purposes appropriate to the particular sound zone. The southwest quadrant of the new airport property encompasses approximately six square miles in the extreme eastern portion of Euless, most of which is in the buffer or controlled use zone reserved for related industry purposes. Private property in this area will be subject to City taxes. Adjoining the airport perimeter on the west is an undeveloped north -south strip of some 13 square miles for which the City has established a zoning category of "Limited Industrial ". Special restrictions include not only height and sound considerations, but also open space requirements. Portions of the right-of-way corridor for the northward extension of State Highway 360 traverse this area. The Regional Airport water supply, waste -water disposal, police and fire protec- tion requirements are the independent responsibility of the airport itself. Accordingly, the City of Euless' municipal service and capital improvement efforts become applicable to the net City area approximating ten square miles. -10- /'s THE CITY - Continued CURRENT FINANCIAL MANAGEMENT Because of potential surges in growth and municipal service requirements, the City's financial policies and practices are intended to develop and maintain carry-over reserve balances at clearly strong levels. These are best illus- strated by actual recent experience as follows: Fiscal Years Oct. 1 /Sept. 30 1968/69 1969/70 1970/71 1971/72 1972 /73 1973/74 1974/75 Beginning Balance $ 28,344 20,788 81,536 178,805 301,757 412,252 375,722 GENERAL FUND Revenues $ 493,179 673,102 845,553 963,262 1,195,452 1,489,357 1,714,539 * Year End Expenditures Balance $ 500,735 $ 20,788 612,354 81,536 748,284 178,805 840,310 301,757 1,084,957 412,252 1,525,887 375,722 1,637,641 * 452,620 * * Eleven months actual, one month estimated. 1968/69 1969/70 1970/71 1971/72 1972/73 1973/74 1974/75 INTEREST & SINKING FUND - GENERAL OBLIGATION $ 22,376 24,132 64,933 122,933 147,951 170,540 152,376 $ 110,834 149,124 176,021 189,342 184,723 292,393 321,317 # $ 109,078 108,323 118,021 164,324 162,134 310,557 ** $ 24,132 64,933 122,933 147,951 170,540 152,376 236,558 237,135 # ** Included augmented first maturity of $100,000 Series 1973. # Revenues and balance subject to modest increase. The above do not include Capital Projects funds on hand aggregating $837,131 as of August 31, 1975. These include the Federal Revenue Sharing Trust Account balance of $304,106. WATERWORKS & SEWER SYSTEM None of the City's general obligation bonds have been issued for water and sewer purposes. The following data is presented as a matter of information only. The water and sewer system serving the cities of Euless and Bedford was acquired by Euless in September 1965 with the proceeds of $5,800,000 Revenue Bonds. The Bedford portion was sold to that City in December 1968 for $1,875,608, the use of which is restricted to prepayment or prior redemption of Revenue Bonds, Series 1965 and Refunding Revenue Bonds, Series 1967. To date, $1,650,000 of the bonds have been prepaid by advertised tender and purchase in the market, with a balance of $423,288 remaining in the Fund. Interest earnings of the Fund (now $26,775 annually) may be, and are, applied to current Revenue Bond interest requirements. WATERWORKS & SEWER SYSTEM - Continued Recent Operating Data Fiscal Year to 9 -30 1970 71 1971/72 , 1972/73 Connections, year end Water Sewer REVENUE Water & Sewer Charges Tap Fees, Etc. Investment Income TOTAL INCOME OPERATING EXPENSE Direct TRA Contracts **' Total Operating Expense 6,745 7,520 7,883 6,305 7,063 7,579 $873,950 $ 960,596 $ 965,755 63,928 39,115 56,097 61.047 80.907 82.238 $998,925 $1,080,618 $1,104,090 $217,480 $ 234,203 $ 262,266 87,952 149,451 226,296 $305,432 $ 383,654 $ 488,562 1973 11 Months 74 To 8 -31 -75 8,070 7,840 $1,145,444 47,831 112.466 $1,305,741 $ 284,464 374,169 $ 658,633 8,107 7,870 $1,203,130 * 33,352 94,673 $1,331,155 $ 311,258 431,114 $ 742,372 NET REVENUE AVAILABLE $693,493 $ 696,964 $ 615,528 $ 647,108 $ 588,783 COVERAGE - Revenue Bond Interest & Principal Maximum 1986/87 $338,175 2.05 Average 1976/05 263,312 2.63 1976/90 329,463 2.10 2.06 2.65 2.12 1.82 2.34 1.87 * Water and sewer charges were increased July 1, 1974 to pass through increased TRA contract costs. ** See narrative below. FUND BALANCES - CASH & INVESTMENTS Operating Fund Customers' Deposits Contingency Fund Interest & Sinking Fund Revenue Bond Reserve Fund Property Sale Proceeds Fund Capital Projects Account 9 -30 -74 8 -31 -75 $706,650 ) $876,901 95,874 ) 100,000 95,843 50,985 44,316 261,944 266,213 423,288 423,288 429,977 137,532 1.91 2.46 1.96 1.90 2.44 1.95 Under a revised contract with Trinity River Authority in 1973, in conjunction with expansion of the Authority's Regional Waste -Water System, Euless became one of nine direct participants. Further enlargements are being made with the proceeds of Authority Revenue Bonds, Series 1975. Costs of operation and debt service are pro- rated on the basis of actual use by each participant (now 15 cities and the new Dallas -Fort Worth Regional Airport). The Authority's new Tarrant County Water Project was completed in 1974, and supplies treated water to Euless and Bedford. Others may be added. Costs to the participants are pro -rated on the basis of actual use. -12-