HomeMy WebLinkAboutItem 07 - General Obligation Bond and Certificate of Obligation SaleSTEM E 1__._�
MEMO TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: ROGER NELSON, CITY MANAGE
MEETING DATE
SUBJECT:
RECOMMENDATION:
NOVEMBER 7, 2000
GENERAL OBLIGATION BOND AND CERTIFICATE OF
OBLIGATION SALE
City Council to consider approving ordinances accepting bids as recommended for sale of
$7,000,000 of General Obligation and Improvement Bonds, Series 2000A, authorized by
the December 1998 bond election; and, for the sale of $7,880,000 of Combination Tax and
Revenue Certificates of Obligation, Series 2000A, for upgrading the City's storm water
drainage system and Main Street improvements and Engineering and Design of a
downtown parking garage; and, for purchasing certain vehicles and equipment authorized
for purchase in the FY 2001 Budget; and, including appropriate costs of issuance of these
debt obligations.
BACKGROUND:
At the November 7, 2000 City Council meeting a representative of the First Southwest
Company, the City's financial advisor, will present bids received for the sale of $7,000,000
of General Obligation Bonds and $7,880,000 of Certificates of Obligation. Proceeds are
to be used for projects which were authorized by voters on December 5, 1998; and for
construction of drainage and street improvement projects and for acquisition of equipment
which was approved for funding in the FY 2001 budget. The G.O. Bonds and the
construction certificates will have a 20 year term and the equipment acquisition certificates
will vary in term from 4 to 10 years, depending upon the useful life of items to be
purchased.
Phase III of the December 5, 1998 bond election sale is to fund the following projects:
Library Improvements
Parks and Trail Projects
Church Street Improvements
Dooley Street Improvements
Economic Development Roadway Improvements
Issuance Costs
Total
$2,830,000
1,013,000
425,000
675,000
2,000,000
57.000
$7,000,000
October 30, 2000 (8:34AM)
M
The Certificate of Obligation proceeds are to be used for the following:
Storm Drainage, Utility System Improvements (creeks 17 and 23)
Main Street Construction
Downtown Parking Garage Design
Equipment Acquisition
Issuance Costs
Total
Total uses required for bond and certificate sales are as follows:
G.O. Bond Projects
Certificates of Obligation items
Issuance Costs
Total
$4,205,000
1,000,000
250,000
2,350,000
75,000
$7,880,000
$6,943,000
7,805,000
132,000
$14,880,000
Copies of the Official Statements prepared for these sales are included in your packets.
The draft sale Ordinances are also available in the City Secretary's Office for public
inspection.
Staff recommends acceptance of the First Southwest Company's recommendations and
approval of the sale Ordinances.
WAG/cjc
H:G0002000bdsale
October 30, 2000 (8:34AM)
PRELIMINARY OFFICIAL STATEMENT
Dated October 26, 2000
NEW ISSUE - Book -Entry -Only
Ratings:
Moody's: Applied For
S&P: Applied For
See ("Other Information -
Ratings" herein)
In the opinion of Bond Counsel, interest on the Bonds is excludable from gross income for federal income tax purposes under existing
law and the Bonds are not private activity bonds. See "Tax Exemption" herein for a discussion of the opinion of Bond Counsel,
including a description of alternative minimum tax consequences for corporations.
THE BONDS WILL NOT BE DESIGNATED AS "OUALIFIED TAX-EXEMPT OBLIGATIONS" FOR FINANCIAL INSTITUTIONS
$7,000,000
CITY OF GRAPEVINE, TEXAS
(Tarrant County)
GENERAL OBLIGATION BONDS, SERIES 2000A
Dated Date: November 1, 2000
Due: February 15, as shown below
PAYMENT TERMS ... Interest on the $7,000,000 City of Grapevine, Texas General Obligation Bonds, Series 2000A (the "Bonds") will
accrue from November 1, 2000, (the "Dated Date") and will be payable February 15 and August 15 of each year commencing
February 15, 2002, and will be calculated on the basis of a 360 -day year consisting of twelve 30 -day months. The definitive Bonds will
be initially registered and delivered only to Cede & Co., the nominee of The Depository Trust Company ("DTC") pursuant to the Book -
Entry -Only System described herein. Beneficial ownership of the Bonds may be acquired in denominations of $5,000 or integral
multiples thereof. No physical delivery of the Bonds will be made to the owners thereof. Principal of, premium, if any, and interest on
the Bonds will be payable by the Paying Agent/Registrar to Cede & Co., which will make distribution of the amounts so paid to the
participating members of DTC for subsequent payment to the beneficial owners of the Bonds. See "The Bonds and Certificates - Book -
Entry -Only System" herein. The initial Paying Agent/Registrar is Bank One, Texas, N.A., Dallas, Texas (see "The Bonds and
Certificates - Paying Agent/Registrar").
AUTHORITY FOR ISSUANCE ... The Bonds are issued pursuant to the Constitution and general laws of the State of Texas, (the "State")
including particularly Chapter 1331, Texas Government Code, as amended, an election held within the City of December 5, 1998, and
Section 9.26 of the City Charter and are direct obligations of the City of Grapevine, Texas (the "City"), payable from a continuing ad
valorem tax levied on all taxable property within the City, within the limits prescribed by law, as provided in the ordinance authorizing
the Bonds (the "Bond Ordinance") (see "The Bonds and Certificates - Authority for Issuance").
PURPOSE ... Proceeds from the sale of the Bonds will be used for library expansion, park and trail development, street and drainage
improvements and to pay the costs associated with the sale of the Bonds.
Amount
Maturity-
$ 210,000
2003
220,000
2004
235,000
2005
250,000
2006
265,000
2007
280,000
2008
295,000
2009
315,000
2010
330,000
2011
350,000
2012
MATURITY SCHEDULE
Rate Yield
Amount
Maturity
$ 370,000
2013
395,000
2014
415,000
2015
440,000
2016
465,000
2017
495,000
2018
525,000
2019
555,000
2020
590,000
2021
(Accrued Interest from November 1, 2000 to be added)
Rate Yield
REDEMPTION ... The City reserves the right, at its option, to redeem Bonds having stated maturities on and after February 15, 2011, in
whole or in part in principal amounts of $5,000 or any integral multiple thereof, on February 15, 2010, or any date thereafter, at the par
value thereof plus accrued interest to the date of redemption. Additionally, the Bonds may be subject to mandatory redemption in the
event the Initial Purchaser(s) of the Bonds elects to aggregate one or more maturities as a Term Bond (see "The Bonds and Certificates -
Optional Redemption" and "The Bonds and Certificates - Mandatory Sinking Fund Redemption").
LEGALITY ... The Bonds are offered for delivery when, as and if issued and received by the Initial Purchaser(s) and subject to the
approving opinion of the Attorney General of Texas and the opinion of Vinson & Elkins L.L.P., Bond Counsel, Dallas, Texas (see
Appendix C, "Form of Bond Counsel's Opinions").
DELIVERY ... It is expected that the Bonds will be available for delivery through The Depository Trust Company on December 5, 2000.
BIDS DUE TUESDAY, NOVEMBER 7, 2000, AT 11:30 AM, CST
sm
THIS PAGE LEFT BLANK INTENTIONALLY
ll
PRELIMINARY OFFICIAL STATEMENT
Dated October 26, 2000
NEW ISSUE - Book -Entry -Only
Ratings:
Moody's: Applied For
S&P: Applied For
See ("Other Information -
Ratings" herein)
In the opinion of Bond Counsel, interest on the Certificates is excludable from gross income for federal income tax purposes under existing law
and the Certificates are not private activity bonds. See "Tax Exemption" herein for a discussion of the opinion of Bond Counsel, including a
description of alternative minimum tax consequences for corporations.
THE CERTIFICATES WILL NOT BE DESIGNATED AS "QUALIFIED TAX-EXEMPT OBLIGATIONS" FOR FINANCIAL INSTITUTIONS
$7,880,000
CITY OF GRAPEVINE, TEXAS
(Tarrant County)
COMBINATION TAX AND REVENUE CERTIFICATES OF OBLIGATION, SERIES 2000A
Dated Date: November 1, 2000 Due: February 15, as shown below
PAYMENT TERMS ... Interest on the $7,880,000 City of Grapevine, Texas Combination Tax and Revenue Certificates of Obligation, Series
2000A (the "Certificates") will accrue from November 1, 2000, (the "Dated Date") and will be payable February 15 and August 15 of each year
commencing February 15, 2002, and will be calculated on the basis of a 360 -day year consisting of twelve 30 -day months. The definitive
Certificates will be initially registered and delivered only to Cede & Co., the nominee of The Depository Trust Company ("DTC") pursuant to the
Book -Entry -Only System described herein. Beneficial ownership of the Certificates may be acquired in denominations of $5,000 or integral
multiples thereof. No physical delivery of the Certificates will be made to the owners thereof. Principal of, premium, if any, and interest on the
Certificates will be payable by the Paying Agent/Registrar to Cede & Co., which will make distribution of the amounts so paid to the
participating members of DTC for subsequent payment to the beneficial owners of the Certificates. See "The Bonds and Certificates - Book -
Entry -Only System" herein. The initial Paying Agent/Registrar is Bank One, Texas, N.A., Dallas, Texas (see "The Bonds and Certificates -
Paying Agent/Registrar").
AUTHORITY FOR ISSUANCE ... The Certificates are issued pursuant to the Constitution and general laws of the State of Texas, (the "State")
particularly Subchapter C of Chapter 271, Texas Local Government Code (the Certificate of Obligation Act of 1971), as amended, and constitute
direct obligations of the City of Grapevine, Texas (the "City"), payable from a combination of (i) the levy and collection of a direct and
continuing ad valorem tax, within the limits prescribed by law, on all taxable property within the City, and (ii) a limited pledge (not to exceed
$1,000) of surplus net revenues of the City's Waterworks and Sewer System, as provided in the ordinance authorizing the Certificates (the
"Certificate Ordinance" and, together with the Bond Ordinance, the "Ordinance") (see "The Bonds and Certificates - Authority for Issuance").
PURPOSE ... Proceeds from the sale of the Certificates will be used for (i) construction, repairs, improvements, equipment and upgrades to the
City's storm drainage system; (ii) authorized capital needs for computer equipment, security systems, fire safety equipment, street maintenance
equipment, police department office furniture, park and golf course maintenance equipment, water and wastewater equipment and City vehicles,
(iii) construction, improvements, resurfacing and repairs to Main Street; (iv) engineering and design work for a parking garage; and (v) to pay
costs of issuance associated with the sale of the Certificates.
Amount
Maturity
$ 490,000
2002
820,000
2003
880,000
2004
605,000
2005
225,000
2006
250,000
2007
260,000
2008
240,000
2009
250,000
2010
265,000
2011
MATURITY SCHEDULE
Rate Yield
Amount
Maturity
$ 280,000
2012
295,000
2013
310,000
2014
325,000
2015
345,000
2016
360,000
2017
385,000
2018
410,000
2019
430,000
2020
455,000
2021
(Accrued Interest from November 1, 2000 to be added)
Rate Yield
REDEMPTION ... The City reserves the right, at its option, to redeem Certificates having stated maturities on and after February 15, 2011, in
whole or in part in principal amounts of $5,000 or any integral multiple thereof, on February 15, 2010, or any date thereafter, at the par value
thereof plus accrued interest to the date of redemption. Additionally, the Certificates may be subject to mandatory redemption in the event the
Initial Purchaser(s) of the Certificates elects to aggregate one or more maturities as a Term Certificate (see "The Bonds and Certificates -
Optional Redemption" and "The Bonds and Certificates - Mandatory Sinking Fund Redemption").
LEGALITY ... The Certificates are offered for delivery when, as and if issued and received by the Initial Purchaser(s) and subject to the
approving opinion of the Attorney General of Texas and the opinion of Vinson & Elkins L.L.P., Bond Counsel, Dallas, Texas (see Appendix C,
"Form of Bond Counsel's Opinions").
DELIVERY ... It is expected that the Certificates will be available for delivery through The Depository Trust Company on December 5, 2000.
BILIS DUE TUESDAY, NOVEMBER 7, 2000, AT 11:30 AM, CST
THIS PAGE LEFT BLANK INTENTIONALLY
This Preliminary Official Statement, which includes the cover page and the Appendices hereto, does not constitute an offer to
sell or the solicitation of an offer to buy in any jurisdiction to any person to whom it is unlawful to make such offer, solicitation
or sale.
No dealer, broker, salesperson or other person has been authorized to give information or to make any representation other
than those contained in this Preliminary Official Statement, and, if given or made, such other information or representations
must not be relied upon.
The information set forth herein has been obtained from the City and other sources believed to be reliable, but such information
is not guaranteed as to accuracy or completeness and is not to be construed as the promise or guarantee of the Financial
Advisor. This Preliminary Official Statement contains, in part, estimates and matters of opinion which are not intended as
statements of fact, and no representation is made as to the correctness of such estimates and opinions, or that they will be
realized.
The information and expressions of opinion contained herein are subject to change without notice, and neither the delivery of
this Preliminary 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 or other matters described.
TABLE OF CONTENTS
PRELIMINARY OFFICIAL STATEMENT
SUMMARY............................................................. 6
CITY OFFICIALS, STAFF AND CONSULTANTS .... 8
ELECTED OFFICIALS ................................................... 8
SELECTED ADMINISTRATIVE STAFF ............................. 8
CONSULTANTS AND ADVISORS ................................... 8
INTRODUCTION ............................................................ 9
THE BONDS AND CERTIFICATES ............................ 9
TAX INFORMATION ................................................... 14
TABLE I - VALUATION, EXEMPTIONS AND GENERAL
OBLIGATION DEBT .......................................... 16
TABLE 2 - TAXABLE ASSESSED VALUATIONS BY
CATEGORY ..................................................... 17
TABLE 3 - VALUATION AND GENERAL OBLIGATION
DEBT HISTORY ............................................... 18
TABLE 4 - TAx RATE, LEVY AND COLLECTION
HISTORY......................................................... 18
TABLE 5 - TEN LARGEST TAXPAYERS ..................... 18
TABLE 6 - TAx ADEQUACY .................................... 19
TABLE 7 - ESTIMATED OVERLAPPING DEBT............ 19
DEBT INFORMATION ................................................ 20
TABLE 8 - PRO -FORMA GENERAL OBLIGATION DEBT
SERVICE REQUIREMENTS ................................ 20
TABLE 9 - INTEREST AND SINKING FUND BUDGET
PROJECTION.................................................... 20
TABLE 10 - COMPUTATION OF SELF-SUPPORTING
DEBT.............................................................. 21
TABLE 11 - AUTHORIZED BUT UNISSUED GENERAL
OBLIGATION BONDS ....................................... 21
TABLE 12 - OTHER OBLIGATIONS ........................... 21
FINANCIAL INFORMATION ..................................... 22
TABLE 13 - GENERAL FUND REVENUES AND
EXPENDITURE HISTORY ................................... 22
TABLE 14 - MUNICIPAL SALES TAx HISTORY.. ........ 23
TABLE 15 - CURRENT INVESTMENTS ......................... 25
TAXMATTERS ............................................................. 26
OTHER INFORMATION .............................................
28
RATINGS.............. ....................................................
28
LITIGATION...............................................................
28
REGISTRATION AND QUALIFICATION OF BONDS AND
CERTIFICATES FOR SALE ..................................
28
LEGAL INVESTMENTS AND ELIGIBILITY TO SECURE
PUBLIC FUNDS IN TEXAS .................................
28
LEGAL MATTERS ......................................................
28
AUTHENTICITY OF FINANCIAL DATA AND OTHER
INFORMATION .................................................
29
CONTINUING DISCLOSURE OF INFORMATION .............
29
INITIAL PURCHASER OF THE BONDS ...........................
30
INITIAL PURCHASER OF THE CERTIFICATES ................
30
FINANCIAL ADVISOR .................................................
30
CERTIFICATION OF THE PRELIMINARY OFFICIAL
STATEMENT ....................................................
31
APPENDICES
GENERAL INFORMATION REGARDING THE CITY ........ A
EXCERPTS FROM THE ANNUAL FINANCIAL REPORT.. B
FORM OF BOND COUNSEL'S OPINION ....................... C
The cover page hereof, this page, the appendices included
herein and any addenda, supplement or amendment hereto,
are part of the Preliminary Official Statement.
PRELIMINARY OFFICIAL STATEMENT SUMMARY
This summary is subject in all respects to the more complete information and definitions contained or incorporated in this
Preliminary Official Statement. The offering of the Bonds and Certificates to potential investors is made only by means of this
entire Preliminary Official Statement. No person is authorized to detach this summary from this Preliminary Official Statement
or to otherwise use it without the entire Preliminary Official Statement.
THE CITY .................................... The City of Grapevine, Texas is a political subdivision and municipal corporation of the State,
located in Tarrant County, Texas. The City covers approximately 33 square miles (see
"Introduction - Description of City").
THE BONDS ................................. The Bonds are issued as $7,000,000 General Obligation Bonds, Series 2000A. The Bonds are
issued as serial bonds maturing February 15, 2003 through February 15, 2021, unless the
Initial Purchaser(s) designate(s) one or more maturities as a Tern Bond (see "The Bonds and
Certificates -Description of the Bonds").
THE CERTIFICATES ..................... The Certificates are issued as $7,880,000 Combination Tax and Revenue Certificates of
Obligation, Series 2000A. The Certificates are issued as serial certificates February 15, 2002
through February 15, 2021, unless the Initial Purchaser(s) designate(s) one or more maturities
as a Term Certificate (see "The Bonds and Certificates -Description of the Certificates").
PAYMENT OF INTEREST .............. Interest on the Bonds and Certificates accrues from November 1, 2000, and is payable
February 15, 2002, and each August 15 and February 15 thereafter until maturity or prior
redemption (see "The Bonds and Certificates - Description of the Bonds," "The Bonds and
Certificates - Optional Redemption").
AUTHORITY FOR ISSUANCE......... The Bonds are issued pursuant to the general laws of the State, including particularly Chapter
1331, Texas Government Code, as amended, an election held within the City on December 5,
1998, the Bond Ordinance passed by the City Council of the City and Section 9.26 of the City
Charter (see "The Bonds and Certificates - Authority for Issuance"),
The Certificates are issued pursuant to the general laws of the State, particularly Subchapter C
of Chapter 271, Texas Local Government Code (the Certificate of Obligation Act of 1971), as
amended, the Certificate Ordinance passed by the City Council of the City and Section 9.26 of
the City Charter (see "The Bonds and Certificates - Authority for Issuance").
SECURITY FOR THE BONDS.......... The Bonds constitute direct and voted obligations of the City, payable from a direct and
continuing ad valorem tax levied, within the limits prescribed by law, on all taxable property
located within the City (see "The Bonds and Certificates - Security and Source of Payment").
SECURITY FOR THE
CERTIFICATES .............................. The Certificates constitute direct obligations of the City, payable from a combination of (i) a
direct and continuing ad valorem tax levied, within the limits prescribed by law, on all taxable
property within the City, and (ii) a limited pledge (not to exceed $1,000) of surplus net revenues
of the City's Waterworks and Sewer System (see "The Bonds and Certificates - Security and
Source of Payment").
REDEMPTION ............................... The City reserves the right, at its option, to redeem Bonds and Certificates having stated
maturities on and after February 15, 2011, in whole or in part in principal amounts of $5,000
or any integral multiple thereof, on February 15, 2010, or any date thereafter, at the par value
thereof plus accrued interest to the date of redemption. Additionally, the Bonds and
Certificates may be subject to mandatory redemption in the event the Initial Purchaser(s) of
the Bonds and Certificates elect to aggregate one or more maturities as a Term Bond or Term
Certificate (see "The Bonds and Certificates - Optional Redemption" and "The Bonds and
Certificates - Mandatory Sinking Fund Redemption").
TAx ExEMPTiON ........................... In the opinion of Bond Counsel, the interest on the Bonds and Certificates will be excludable
from gross income for federal income tax purposes under existing law and the Bonds and
Certificates are not private activity bonds. See "Tax Matters - Tax Exemption" for a discussion
of the opinion of Bond Counsel, including a description of the alternative minimum tax
consequences for corporations.
USE OF PROCEEDS ....................... Proceeds from the sale of the Bonds will be used for library expansion, park and trail
development, street and drainage improvements and to pay the costs associated with the sale
of the Bonds.
Proceeds from the sale of the Certificates will be used for (i) construction, repairs,
improvements, equipment and upgrades to the City's storm drainage system; (ii) authorized
capital needs for computer equipment, security systems, fire safety equipment, street
maintenance equipment, police department office furniture, park and golf course maintenance
equipment, water and wastewater equipment and City vehicles, (iii) construction,
improvements, resurfacing and repairs to Main Street; (iv) engineering and design work for a
parking garage; and (v) to pay costs of issuance associated with the sale of the Certificates.
RATINGS ..................................... The presently outstanding general obligation debt of the City is rated "Al" by Moody's
Investors Service, Inc. ("Moody's") and "A+" by Standard & Poor's Ratings Services, A
Division of The McGraw-Hill Companies, Inc. ("S&P"). The City also has issues outstanding
which are rated "Aaa" by Moody's and "AAA" by S&P through insurance by various
commercial insurance companies. Applications for contract ratings on the Bonds and
Certificates have been made to Moody's and S&P (see "Other Information - Ratings").
BOOK -ENTRY -ONLY
SYSTEM ...................................... The definitive Bonds and Certificates will be initially registered and delivered only to Cede &
Co., the nominee of DTC pursuant to the Book -Entry -Only System described herein.
Beneficial ownership of the Bonds and Certificates may be acquired in denominations of
$5,000 or integral multiples thereof. No physical delivery of the Bonds and Certificates will
be made to the beneficial owners thereof. Principal of, premium, if any, and interest on the
Bonds and Certificates will be payable by the Paying Agent/Registrar to Cede & Co., which
will make distribution of the amounts so paid to the participating members of DTC for
subsequent payment to the beneficial owners of the Bonds and Certificates (see "The Bonds
and Certificates - Book -Entry -Only System").
PAYMENT RECORD ...................... The City has not defaulted on its tax -supported debt since 1932 when all defaults were
corrected without refunding.
SELECTED FINANCIAL INFORMATION
(1) Projected, includes the Bonds and Certificates.
(2) Unaudited.
For additional information regarding the City, please contact:
Fred Werner
Director of Finance
City of Grapevine
200 South Main
Grapevine, Texas 76051
(817) 410-3111
7
David K. Medanich
or Steven Adams
First Southwest Company
201 Main Street, Suite 1320
Fort Worth, Texas 76102
(817) 332-9710
% of
Total Tax
Collections
99.68%
99.40%
100.30%
99.77% (z)
N.A.
Ratio Funded
Fiscal
Per Capita
Per Capita
Tax Debt to
Year
Estimated
Taxable
Taxable
Funded
Funded
Taxable
Ended
City
Assessed
Assessed
Tax
Tax
Assessed
9/30
Population
Valuation
Valuation
Debt
Debt
Valuation
1997
36,000
$ 3,124,673,648
$ 86,796
$ 90,993,462
$ 2,528
2.91%
1998
37,946
3,253,338,457
85,736
95,546,968
2,518
2.94%
1999
39,190
3,994,671,130
101,931
103,132,152
2,632
2.58%
2000
39,800
4,089,979,800
102,763
143,995,000
3,618
3.52%
2001
40,490
4,372,544,317
107,991
152,430,000 t'�
3,765
3.49%
(1) Projected, includes the Bonds and Certificates.
(2) Unaudited.
For additional information regarding the City, please contact:
Fred Werner
Director of Finance
City of Grapevine
200 South Main
Grapevine, Texas 76051
(817) 410-3111
7
David K. Medanich
or Steven Adams
First Southwest Company
201 Main Street, Suite 1320
Fort Worth, Texas 76102
(817) 332-9710
% of
Total Tax
Collections
99.68%
99.40%
100.30%
99.77% (z)
N.A.
(1) 19 years with City; 13 years in present position.
CONSULTANTS AND ADVISORS
Auditors........................................................................................................................................................ Deloitte & Touche LLP
Fort Worth, Texas
BondCounsel................................................................................................................................................ Vinson & Elkins L.L.P.
Dallas, Texas
FinancialAdvisor.......................................................................................................................................First Southwest Company
Dallas and Fort Worth, Texas
8
CITY OFFICIALS, STAFF AND CONSULTANTS
ELECTED OFFICIALS
Length of Term
City Council
Service Expires
Occupation
William D. Tate
12 Years U) May, 2003
Attorney -at -Law
Mayor
Ted R. Ware
21 Years May, 2002
Commercial Contractor
Mayor Pro Tem
C. Shane Wilbanks
15 Years May, 2003
Personnel Director
Councilmember, Place 1
Sharron Spencer
15 Years May, 2003
Retired Sales Representative
Councilmember, Place 2
Clydene Johnson
5 Years May, 2001
Independent Insurance Agent
Councilmember, Place 3
Darlene Freed
2 Years May, 2001
Commercial Real Estate Agent
Councilmember, Place 4
Roy Stewart
4 Years May, 2002
Construction Company Owner
Councilmember, Place 6
(1) Previously served 14 years as Mayor
and Councilmember.
SELECTED ADMINISTRATIVE STAFF
Name
Position
Length of Service
Roger Nelson
City Manager
5 Years
Bill Gaither
Administrative Services Director
4 Years
Fred Werner
Director of Finance
3 1/2 Years
Linda Huff
City Secretary
19 Years (')
(1) 19 years with City; 13 years in present position.
CONSULTANTS AND ADVISORS
Auditors........................................................................................................................................................ Deloitte & Touche LLP
Fort Worth, Texas
BondCounsel................................................................................................................................................ Vinson & Elkins L.L.P.
Dallas, Texas
FinancialAdvisor.......................................................................................................................................First Southwest Company
Dallas and Fort Worth, Texas
8
PRELIMINARY OFFICIAL STATEMENT
RELATING TO
$7,000,000
CITY OF GRAPEVINE, TEXAS
GENERAL OBLIGATION BONDS, SERIES 2000A
AND
$7,880,000
CITY OF GRAPEVINE, TEXAS
COMBINATION TAX AND REVENUE CERTIFICATES OF OBLIGATION, SERIES 2000A
INTRODUCTION
This Preliminary Official Statement, which includes the Appendices hereto, provides certain information regarding the issuance
of $7,000,000 City of Grapevine, Texas, General Obligation Bonds, Series 2000A (the "Bonds") and $7,880,000 City of
Grapevine, Texas Combination Tax and Revenue Certificates of Obligation, Series 2000A (the "Certificates"). Capitalized terms
used in this Preliminary Official Statement have the same meanings assigned to such terms in the Bond Ordinance and Certificate
Ordinance each to be adopted on the date of sale of the Bonds and Certificates which will authorize the issuance of the Bonds
and Certificates, respectively, except as otherwise indicated herein.
There follows in this Preliminary Official Statement descriptions of the Bonds and Certificates and certain information regarding
the City and its finances. All descriptions of documents contained herein are only summaries and are qualified in their entirety by
reference to each such document. Copies of such documents may be obtained from the City's Financial Advisor, First Southwest
Company, Dallas, Texas.
DESCRIPTION OF THE CITY ... The City is a political subdivision and municipal corporation of the State, duly organized and
existing under the laws of the State, including the City's Home Rule Charter. The City fust adopted its Home Rule Charter in 1965.
The City operates under the Council/Manager form of government with a City Council comprised of the Mayor and six
Councilmembers. The City Manager is the chief administrative officer for the City. Some of the services that the City provides are:
public safety (police and fire protection), highways and streets, electric, water and sanitary sewer utilities, health and social services,
vilture-recreation, public transportation, public improvements, planning and zoning, and general administrative services. The 1990
Census population for the City was 29,202, while the 2000 estimated population is 39,190. The City covers approximately 33 square
miles.
THE BONDS AND CERTIFICATES
DESCRIPTION OF THE BOND AND CERTIFICATES ... The Bonds and Certificates are dated November 1, 2000, and mature, or are
subject to redemption prior to maturity, on February 15 in each of the years and in the amounts shown on the cover page and
page 3 hereof. Interest will be computed on the basis of a 360 -day year of twelve 30 -day months, and will be payable on
August 15 and February 15, commencing February 15, 2002. The definitive Bonds and Certificates will be issued only in fully
registered form in any integral multiple of $5,000 for any one maturity and will be initially registered and delivered only to Cede
& Co., the nominee of The Depository Trust Company ("DTC") pursuant to the Book -Entry -Only System described herein. No
physical delivery of the Bonds will be made to the owners thereof. Principal of, premium, if any, and interest on the Bonds
and Certificates will be payable by the Paying Agent/Registrar to Cede & Co., which will make distribution of the amounts so
paid to the participating members of DTC for subsequent payment to the beneficial owners of the Bonds and Certificates. See
"Book -Entry -Only System" herein.
AUTHORITY FOR ISSUANCE ... The Bonds were authorized at an election held on December 5, 1998 and approved by a majority
of the participating voters. The Bonds are being issued pursuant to the Constitution and general laws of the State of Texas,
particularly Chapter 1331, Texas Government Code, as amended; an election held and passed by a majority of the participating
voters; the Bond Ordinance passed by the City Council, and Section 9.26 of the City Charter.
The Certificates are being issued pursuant to the Constitution and general laws of the State of Texas, particularly Subchapter C of
Chapter 271, Texas Local Government Code (the Certificate of Obligation Act of 1971), as amended, the Certificate Ordinance
passed by the City Council, and Section 9.26 of the City Charter.
PURPOSE...
The Bonds ... Proceeds from the sale of the Bonds will be used for library expansion, park and trail development, street and
drainage improvements and to pay the costs associated with the sale of the Bonds.
The Certificates ... Proceeds from the sale of the Certificates will be used for (i) construction, repairs, improvements, equipment
and upgrades to the City's storm drainage system; (ii) authorized capital needs for computer equipment, security systems, fire
safety equipment, street maintenance equipment, police department office furniture, park and golf course maintenance
equipment, water and wastewater equipment and City vehicles, (iii) construction, improvements, resurfacing and repairs to Main
Street; (iv) engineering and design work for a parking garage; and (v) to pay costs of issuance associated with the sale of the
Certificates.
SECURITY AND SOURCE OF PAYMENT .. .
The Bonds ... All taxable property within the City is subject to a continuing direct annual ad valorem tax levied, within the
limits prescribed by law, by the City sufficient to provide for the payment of principal of and interest on all Bonds.
The Certificates ... All taxable property within the City is subject to a continuing direct annual ad valorem tax levied, with the limits
prescribed by law, by the City sufficient to provide for the payment of principal of and interest on all Certificates payable in whole or
in part from ad valorem taxes. Additionally, the Certificates are payable from and secured by a limited pledge (not to exceed $1,000)
of surplus net revenues of the City's Waterworks and Sewer System, as provided in the Certificate Ordinance authorizing the
Certificates.
TAx RATE LIMITATION ... All taxable property within the City is subject to the assessment, levy and collection by the City of a
continuing, direct annual ad valorem tax sufficient to provide for the payment of principal of and interest on all ad valorem tax
debt within the limits prescribed by law. Article XI, Section 5, of the Texas Constitution is applicable to the City, and limits its
maximum ad valorem tax rate to $2.50 per $100 Taxable Assessed Valuation for all City purposes. The Home Rule Charter of
the City adopts the constitutionally authorized maximum tax rate of $2.50 per $100 Taxable Assessed Valuation.
OPTIONAL REDEMPTION ... The City reserves the right, at its option, to redeem the Bonds or Certificates, or both, having stated
maturities on and after February 15, 2011, in whole or in part in principal amounts of $5,000 or any integral multiple thereof, on
February 15, 2010, or any date thereafter, at the par value thereof plus accrued interest to the date of redemption. If less than all
of the Bonds or Certificates are to be redeemed, the City may select the maturities of Bonds and Certificates to be redeemed. If
less than all the Bonds or Certificates of any maturity are to be redeemed, the Paying Agent/Registrar (or DTC while the Bonds
and Certificates are in Book -Entry -Only form) shall determine by lot the Bonds and Certificates, or portions thereof, within such
maturity to be redeemed. If a Bond or Certificate (or any portion of the principal sum thereof) shall have been called for
redemption and notice of such redemption shall have been given, such Bond or Certificate (or the principal amount thereof to be
redeemed) shall become due and payable on such redemption date and interest thereon shall cease to accrue from and after the
redemption date, provided funds for the payment of the redemption price and accrued interest thereon are held by the Paying
Agent/Registrar on the redemption date.
MANDATORY, SINKING FUND REDEMPTION ... In addition to being subject to optional redemption as provided above, should the
initial purchasers of the Bonds or Certificates elect to designate Bonds or Certificates as Term Bonds or Terms Certificates, as
applicable, such Term Bonds or Term Certificates are subject to mandatory sinking fund redemption prior to maturity at a price
of par plus accrued interest to the redemption date from amounts required to be deposited in the interest and sinking fund for the
Bonds or Certificates, as applicable, on the first February 15 following the last maturity for serial Bonds or serial Certificates, as
the case may be, and annually thereafter on each February 15 until the stated maturity of such Term Bonds or Term Certificates.
The principal amount of Term Bonds or Term Certificates to be redeemed on each mandatory redemption date shall be the
principal amount that would have been due and payable in the maturity schedule shown on the cover page (with respect to the
Bonds) or page 3 (with respect to the Certificates) hereof had no conversion to Term Bonds or Term Certificates, as the case may
be, occurred.
The particular Bonds or Certificates to be redeemed on February 15 of each year pursuant to the mandatory sinking fund
redemption provisions described above shall be chosen by the Paying Agent/Registrar at random by lot or other customary
method. The principal amount of Term Bonds or Term Certificates of a stated maturity required to be redeemed on any
mandatory redemption date pursuant to the operation of the mandatory sinking fund redemption provisions shall be reduced, at
the option of the City, by the principal amount of any Term Bonds or Term Certificates of the same maturity which, at least 45
days prior to a mandatory redemption date (1) shall have been acquired by the City at a price not exceeding the principal amount
of such Term Bonds or Term Certificates, plus accrued interest to the date of purchase thereof, and delivered to the Paying
Agent/Registrar for cancellation, or (2) shall have been redeemed pursuant to the optional redemption provisions and not
theretofore credited against a mandatory sinking fund redemption requirement.
NOTICE OF REDEMPTION ... Not less than 30 days prior to a redemption date for the Bonds or Certificates, the City shall cause a
notice of redemption to be sent by United States mail, first class, postage prepaid, to the registered owners of the Bonds or
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Certificates to be redeemed, in whole or in part, at the address of the registered owner appearing on the registration books of the
Paying Agent/Registrar at the close of business on the business day next preceding the date of mailing such notice. ANY
NOTICE SO MAILED SHALL BE CONCLUSIVELY PRESUMED TO HAVE BEEN DULY GIVEN NOTWITHSTANDING
ONE OR MORE REGISTERED OWNERS MAY HAVE FAILED TO RECEIVE SUCH NOTICE. If a Bond or Certificate (or
any portion of its principal sum) shall have been duly called for redemption and notice of such redemption duly given, then upon
the redemption date such Bond or Certificate (or the portion of its principal sum to be redeemed) shall become due and payable,
and, if monies for the payment of the redemption price and the interest accrued on the principal amount to be redeemed to the
date of redemption are held for the purpose of such payment by the Paying Agent/Registrar, interest shall cease to accrue and be
payable from and after the redemption date on the principal amount redeemed.
DEFEASANCE ... The Bond Ordinance and the Certificate Ordinance provide that the City may discharge its obligations to the
registered owners of any or all of the Bonds or Certificates, as applicable, to pay principal, interest and redemption price thereon
in any manner permitted by law. Under current Texas law, such discharge may be accomplished either (i) by depositing with the
Paying Agent/Registrar or other lawfully authorized entity a sum of money equal to the principal of, premium, if any, and all
interest to accrue on such Bonds or Certificates to maturity or redemption or (ii) by depositing with the Paying Agent/Registrar
or other lawfully authorized entity amounts sufficient, together with the investments earnings thereon, to provide for the payment
and/or redemption of such Bonds or Certificates; provided that such deposits may be invested and reinvested only in (a) direct
obligations of the United States of America, including obligations that are unconditionally guaranteed by the United States of
America, (b) noncallable obligations of an agency or instrumentality of the United States, including obligations that are
unconditionally guaranteed or insured by the agency or instrumentality and that, on the date the governing body of the City
adopts or approves the proceedings authorizing the issuance of refunding obligations, are rated as to investment quality by a
nationally recognized investment rating firm not less than AAA or its equivalent; and (c) noncallable obligations of a state or an
agency or a county, municipality, or other political subdivision of a state that have been refunded and that, on the date the
governing body of the City adopts or approves the proceedings authorizing the issuance of refunding obligations to refund the
Bonds or Certificates, as applicable, are rated as to investment quality by a nationally recognized investment rating firm not less
than AAA or its equivalent. The foregoing obligations may be in book entry form, and shall mature and/or bear interest payable
at such times and in such amounts as will be sufficient to provide for the scheduled payment and/or redemption of the Bonds or
Certificates, as the case may be. If any of such Bonds or Certificates are to be redeemed prior to their respective dates of
maturity, provision must have been made for the payment to the registered owners of such Bonds or Certificates at the date of
maturity or prior redemption of the full amount to which such owner would be entitled and for giving notice of redemption as
provided in the Bond Ordinance or Certificate Ordinance, as applicable.
Upon such deposit as described above, such Bonds or Certificates shall no longer be regarded to be outstanding or unpaid. After
firm banking and financial arrangements for the discharge and final payment or redemption of Bonds or Certificates have been
made as described above, all rights of the City to initiate proceedings to call such Bonds or Certificates for redemption or take
any other action amending the terms of such Bonds or Certificates are extinguished; provided, however, that the right to call
such Bonds or Certificates for redemption is not extinguished if the City: (i) in the proceedings providing for the firm banking
and financial arrangements, expressly reserves the right to call such Bonds or Certificates for redemption; (ii) gives notice of the
reservation of that right to the owners of such Bonds or Certificates immediately following the making of the firm banking and
financial arrangements; and (iii) directs that notice of the reservation be included in any redemption notices that it authorizes.
BOOK -ENTRY -ONLY SYSTEM ... This section describes how ownership of the Bonds and Certificates are to be transferred and
how the principal of, premium, if any, and interest on the Bonds and Certificates are to be paid to and credited by DTC while the
bonds are registered in its nominee name. The information in this section concerning DTC and the Book -Entry -Only System has
been provided by DTC for use in disclosure documents such as this Official Statement. The City believes the source of such
information to be reliable, but takes no responsibility for the accuracy or completeness thereof.
The City cannot and does not give any assurance that (1) DTC will distribute payments of debt service on the Bonds and
Certificates, or redemption or other notices, to DTC Participants, (2) DTC Participants or others will distribute debt service
payments paid to DTC or its nominee (as the registered owner of the Bonds and Certificates), or redemption or other notices, to
the Beneficial Owners, or that they will do so on a timely basis, or (3) DTC will serve and act in the manner described in this
Official Statement. The current rules applicable to DTC are on file with the Securities and Exchange Commission, and the
current procedures of DTC to be followed in dealing with DTC Participants are on file with DTC.
The Depository Trust Company ("DTC"), New York, New York, will act as securities depository for the Bonds and Certificates.
The Bonds and Certificates will be issued as fully -registered securities registered in the name of Cede & Co. (DTC's partnership
nominee). One fully -registered certificate will be issued for each maturity of the Bonds and Certificates in the aggregate
principal amount of each such maturity and will be deposited with DTC.
DTC is a limited -purpose trust company organized under the New York Banking Law, a "banking organization" within the
meaning of the New York Banking Law, a member of the Federal Reserve System, a "clearing corporation" within the meaning
of the New York Uniform Commercial Code, and a "clearing agency" registered pursuant to the provisions of Section 17A of the
Securities Exchange Act of 1934. DTC holds securities that its participants ("Direct Participants") deposit with DTC. DTC also
facilitates the settlement among Participants of securities transactions, such as transfers and pledges, in deposited securities
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through electronic computerized book -entry changes in Participants' accounts, thereby eliminating the need for physical
movement of securities certificates. Direct Participants include securities brokers and dealers, banks, trust companies, clearing
corporations, and certain other organizations. DTC is owned by a number of its Direct Participants and by the New York Stock
Exchange, Inc., the American Stock Exchange, Inc., and the National Association of Securities Dealers, Inc. Access to the DTC
system is also available to others such as securities brokers and dealers, banks, and trust companies that clear through or maintain
a custodial relationship with a Direct Participant, either directly or indirectly ("Indirect Participants"). The Rules applicable to
DTC and its Participants are on file with the Securities and Exchange Commission.
Purchases of Bonds and Certificates under the DTC system must be made by or through DTC Participants, which will receive a
credit for such purchases on DTC's records. The ownership interest of each actual purchaser of each Bond and Certificate
("Beneficial Owner") is in turn to be recorded on the Direct or Indirect Participants' records. Beneficial Owners will not receive
written confirmation from DTC of their purchase, but Beneficial Owners are expected to receive written confirmations providing
details of the transaction, as well as periodic statements of their holdings, from the Direct or Indirect Participant through which
the Beneficial Owner entered into the transaction. Transfers of ownership interest in the Bonds and Certificates are to be
accomplished by entries made on the books of Participants acting on behalf of Beneficial Owners. Beneficial Owners will not
receive certificates representing their ownership interests in the Bonds and Certificates, except in the event that use of the
book -entry system described herein is discontinued.
To facilitate subsequent transfers, all Bonds and Certificates deposited by Direct Participants with DTC are registered in the
name of DTC's partnership nominee, Cede & Co. The deposit of Bonds and Certificates with DTC and their registration in the
name of Cede & Co. effect no change in beneficial ownership. DTC has no knowledge of the actual Beneficial Owners of the
Bonds and Certificates; DTC's records reflect only the identity of the Direct Participants to whose accounts such Bonds and
Certificates are credited, which may or may not be the Beneficial Owners. The Participants will remain responsible for keeping
account of their holdings on behalf of their customers.
Ccnveyancc of notices and other communications by DTC to Direct Participants, by Direct Participants to Indirect Participants,
and by Direct Participants and Indirect Participants to Beneficial Owners will be governed by arrangements among them, subject
to any statutory or regulatory requirements as may be in effect from time to time.
Redemption notices shall be sent to Cede & Co. If less than all of the Bonds or Certificates within an issue are being redeemed,
DTC's practice is to determine by lot the amount of the interest of each Direct Participant in such issue to be redeemed.
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Neither DTC nor Cede & Co. will consent or vote with respect to the Bonds or Certificates. Under its usual procedures, DTC
mails an Omnibus Proxy to the City as soon as possible after the Record Date (hereinafter defined). The Omnibus Proxy assigns
Cede & Co.'s consenting or voting rights to those Direct Participants to whose accounts the Bonds and Certificates are credited
on the Record Date (identified in a listing attached to the Omnibus Proxy).
Principal and interest payments on the Bonds and Certificates will be made to DTC. DTC's practice is to credit Direct
Participants' accounts on each payable date in accordance with their respective holdings shown on DTC's records unless DTC has
reason to believe that it will not receive payment on such payable date. Payments by Participants to Beneficial Owners will be
governed by standing instructions and customary practices, as is the case with securities held for the accounts of customers in
bearer form or registered in "street name," and will be the responsibility of such Participant and not of DTC, the Paying
Agent/Registrar or the City, subject to any statutory or regulatory requirements as may be in effect from time to time. Payment of
principal and interest to DTC is the responsibility of the City, disbursement of such payments to Direct Participants shall be the
responsibility of DTC, and disbursement of such payments to the Beneficial Owners shall be the responsibility of Direct and
Indirect Participants.
DTC may discontinue providing its services as securities depository with respect to the Bonds and/or Certificates at any time by
giving reasonable notice to the City. Under such circumstances, in the event that a successor securities depository is not
obtained, such Bonds or Certificates are required to be printed and delivered.
The City may decide to discontinue use of the system of book -entry transfers through DTC (or a successor securities depository)
with respect to the Bonds and/or Certificates. In that event, Bonds and Certificates will be printed and delivered.
USE OF CERTAIN TERMS IN OTHER SECTIONS OF THIS OFFICIAL STATEMENT. In reading this Official Statement it should be
understood that while the Bonds or Certificates are in the Book -Entry Only System, references in other sections of this Official
Statement to registered owners should be read to include the person for which the Participant acquires an interest in such Bonds
or Certificates, but (i) all rights of ownership must be exercised through DTC and the Book -Entry Only System, and (ii) except as
described above, notices that are to be given to registered owners under the Trust Agreement will be given only to DTC.
Information concerning DTC and the Book -Entry Only System has been obtained from DTC and is not guaranteed as to accuracy
or completeness by, and is not to be construed as a representation by the City.
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EFFECT OF TERMINATION OF BOOK -ENTRY ONLY SYSTEM. In the event that the Book -Entry Only System is discontinued by
DTC or the use of the Book -Entry Only System is discontinued by the City with respect to the Bonds and/or Certificates, the
following provisions will be applicable to such Bonds or Certificates. Such Bonds and Certificates may be exchanged for an
equal aggregate principal amount of such Bonds or Certificates in authorized denominations and of the same maturity upon
surrender thereof at the principal office for payment of the Paying Agent/Registrar. The transfer of any Bond or Certificate may
be registered on the books maintained by the Paying Agent/Registrar for such purpose only upon the surrender of such Bond or
Certificate to the Paying Agent/Registrar with a duly executed assignment in form satisfactory to the Paying Agent/Registrar. For
every exchange or transfer of registration of Bonds or Certificates, the Paying Agent/Registrar and the City may make a charge
sufficient to reimburse them for any tax or other governmental charge required to be paid with respect to such exchange or
registration of transfer. The City shall pay the fee, if any, charged by the Paying Agent/Registrar for the transfer or exchange.
The Paying Agent/Registrar will not be required to transfer or exchange any Bond or Certificate after its selection for redemption.
The City and the Paying Agent/Registrar may treat the person in whose name a Bond or Certificate is registered as the absolute
owner thereof for all purposes, whether such Bond or Certificate is overdue or not, including for the purpose of receiving
payment of, or on account of, the principal of, premium, if any, and interest on, such Bond or Certificate.
PAYING AGENT/REGISTRAR ... The initial Paying Agent/Registrar for the Bonds and Certificates is Bank One, Texas, N.A.,
Dallas, Texas. In the Bond Ordinance and Certificate Ordinance, the City retains the right to replace the Paying Agent/Registrar.
The City covenants to maintain and provide a Paying Agent/Registrar at all times until the Bonds and Certificates are duly paid
and any successor Paying Agent/Registrar shall be a commercial bank or trust company organized under the laws of the State of
Texas or other entity duly qualified and legally authorized to serve as and perform the duties and services of Paying
Agent/Registrar for the Bonds and Certificates. Upon any change in the Paying Agent/Registrar for the Bonds and Certificates,
the City agrees to promptly cause a written notice thereof to be sent to each registered owner of the Bonds and Certificates by
United States mail, first class, postage prepaid, which notice shall also give the address of the new Paying Agent/Registrar.
RECORD DATE FOR INTEREST PAYMENT ... The record date ("Record Date") for the interest payable on the Bonds and
Certificates on any interest payment date means the close of business on the last business day of the month next preceding.
In the event of a non-payment of interest on a scheduled payment date, and for 30 days thereafter, a new record date for such
interest payment (a "Special Record Date") will be established by the Paying Agent/Registrar, if and when funds for the payment
of such interest have been received from the City. Notice of the Special Record Date and of the scheduled payment date of the
past due interest ("Special Payment Date", which shall be 15 days after the Special Record Date) shall be sent at least five
business days prior to the Special Record Date by United States mail, first class postage prepaid, to the address of each Holder of
a Bond and Certificate appearing on the registration books of the Paying Agent/Registrar at the close of business on the last
business day next preceding the date of mailing of such notice.
BONDHOLDERS' AND CERTIFICATEHOLDERS' REMEDIES ... The Bond Ordinance and Certificate Ordinance establish as "events
of default" (i) the failure to make payment of principal of redemption premium, if any, or interest on any of the Bonds or
Certificates when due and payable; or (ii) default in the performance or observance of any other covenant, agreement or
obligation of the City, which default materially and adversely affects the rights of the owners, including but not limited to their
prospect or ability to be repaid in accordance with the Ordinance, and the combination there for a period of sixty days after notice
of such default is given to any Owner by the City. Under State law there is no right to the acceleration of maturity of the Bonds
and Certificates upon the failure of the City to observe any covenant under the Ordinance. Although a registered owner of Bonds
and Certificates could presumably obtain a judgment against the City if a default occurred in the payment of principal of or
interest on any such Bonds and Certificates, such judgment could not be satisfied by execution against any property of the City.
Such registered owner's only practical remedy, if a default occurs, is a mandamus or mandatory injunction proceeding to compel
the City to assess and collect rates and charges for water and sewer services sufficient to pay principal of and interest on the
Bonds and Certificates as it becomes due. The enforcement of any such remedy may be difficult and time consuming and a
registered owner could be required to enforce such remedy on a periodic basis. Neither the Bond Ordinance nor the Certificate
Ordinance provides for the appointment of a trustee to represent the interests of the bondholders upon any failure of the City to
perform in accordance with the terms of the Ordinance, or upon any other condition. Furthermore, the City is eligible to seek
relief from its creditors under Chapter 9 of the U.S. Bankruptcy Code. Chapter 9 provides for the recognition of a security
interest represented by a specifically pledged source of revenues, and also includes an automatic stay provision that would
prohibit, without Bankruptcy Court approval, the prosecution of any other legal action by creditors or bondholders of an entity
which has sought protection under Chapter 9. Therefore, should the City avail itself of Chapter 9 protection from creditors, the
ability to enforce would be subject to the approval of the Bankruptcy Court (which could require that the action be heard in
Bankruptcy Court instead of other federal or state court); and the Bankruptcy Code provides for broad discretionary powers of a
Bankruptcy Court in administering any proceeding brought before it. The opinion of Bond Counsel will note that all opinions
relative to the enforceability of the Ordinance and the Bonds and Certificates are qualified with respect to the customary rights of
debtors relative to their creditors.
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TAX INFORMATION
AD VALOREM TAX LAW ... The appraisal of property within the City is the responsibility of the Tarrant Appraisal District (the
"Appraisal District"). Excluding agricultural and open -space land, which may be taxed on the basis of productive capacity, the
Appraisal District is required under the Property Tax Code to appraise all property within the Appraisal District on the basis of 100%
of its market value and is prohibited from applying any assessment ratios. In determining market value of property, different methods
of appraisal may be used, including the cost method of appraisal, the income method of appraisal and market data comparison method of
appraisal, and the method considered most appropriate by the chief appraiser is to be used. State law further limits the appraised value of a
residence homestead for a tax year to an amount not to exceed the less of (1) the market value of the property, or (2) the sum of (a) 10% of
the appraised value of the property for the last year in which the property was appraised for taxation times the number of years since the
property was last appraised, plus (b) the appraised value of the property for the last year in which the property was appraised plus (c) the
market value of all new improvements to the property. The value placed upon property within the Appraisal District is subject to
review by an Appraisal Review Board, consisting of three members appointed by the Board of Directors of the Appraisal District.
The Appraisal District is required to review the value of property within the Appraisal District at least every three years. The City
may require annual review at its own expense, and is entitled to challenge the determination of appraised value of property within the
City by petition filed with the Appraisal Review Board.
Reference is made to the V.T.C.A., Property Tax Code, for identification of property subject to taxation; property exempt or which
may be exempted from taxation, if claimed; the appraisal of property for ad valorem taxation purposes; and the procedures and
limitations applicable to the levy and collection of ad valorem taxes.
Article VIII of the State Constitution ("Article VIII") and State law provide for certain exemptions from property taxes, the valuation
of agricultural and open -space lands at productivity value, and the exemption of certain personal property from ad valorem taxation.
Under Section 1-b, Article VIII, and State law, the governing body of a political subdivision, at its option, may grant: (1) An
exemption of not less than $3,000 of the market value of the residence homestead of persons 65 years of age or older and the disabled
from all ad valorem taxes thereafter levied by the political subdivision; (2) An exemption of up to 20% of the market value of
residence homesteads. The minimum exemption under this provision is $5,000.
In the case of residence homestead exemptions granted under Section 1-b, Article VIII, ad valorem taxes may continue to be
levied against the value of homesteads exempted where ad valorem taxes have previously been pledged for the payment of debt if
cessation of the levy would impair the obligation of the contract by which the debt was created.
State law and Section 2, Article VIII, mandate an additional property tax exemption for disabled veterans or the surviving spouse or
children of a deceased veteran who died while on active duty in the armed forces; the exemption applies to either real or personal
property with the amount of assessed valuation exempted ranging from $5,000 to a maximum of $12,000.
Article VIII provides that eligible owners of both agricultural land (Section 1-d) and open -space land (Section 141), including
open -space land devoted to farm or ranch purposes or open -space land devoted to timber production, may elect to have such property
appraised for property taxation on the basis of its productive capacity. The same land may not be qualified under both Section 1-d
and 1-d-1.
Nonbusiness personal property, such as automobiles or light trucks, are exempt from ad valorem taxation unless the governing body
of a political subdivision elects to tax this property. Boats owned as nonbusiness property are exempt from ad valorem taxation.
Article VIII, Section 1-j, provides for "freeport property" to be exempted from ad valorem taxation. Freeport property is defined as
goods detained in Texas for 175 days or less for the purpose of assembly, storage, manufacturing, processing or fabrication.
Decisions to continue to tax may be reversed in the future; decisions to exempt freeport property are not subject to reversal.
The City and the other taxing bodies within its territory may agree to jointly create tax increment financing zones, under which the tax
values on property in the zone are "frozen" at the value of the property at the time of creation of the zone. The City also may enter
into tax abatement agreements to encourage economic development. Under the agreements, a property owner agrees to construct
certain improvements on its property. The City in turn agrees not to levy a tax on all or part of the increased value attributable to the
improvements until the expiration of the agreement. The abatement agreement could last for a period of up to 10 years.
EFFECTIVE TAx RATE AND ROLLBACK TAx RATE ... By each September 1 or as soon thereafter as practicable, the City
Council adopts a tax rate per $100 taxable value for the current year. The City Council will be required to adopt the annual tax
rate for the City before the later of September 30 or the 60 day after the date the certified appraisal roll is received by the City.
If the City Council does not adopt a tax rate by such required date the tax rate for that tax year is the lower of the effective tax
rate calculated for the tax year or the tax rate adopted by the City for the preceding tax year. The tax rate consists of two
components: (1) a rate for funding of maintenance and operation expenditures, and (2) a rate for debt service.
Under the Property Tax Code, the City must annually calculate and publicize its "effective tax rate" and "rollback tax rate".
Effective January 1, 2000, a tax rate cannot be adopted by the City Council that exceeds the lower of the rollback tax rate or 103
per cent of the effective tax rate until a public hearing is held on the proposed tax rate following a notice of such public hearing
(including the requirements that notice be posted on the City's website if the City owns, operates or controls an internet website
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and public notice be given by television if the City has free access to a television channel) and the City Council has otherwise
complied with the legal requirements for the adoption of such tax rate. If the adopted tax rate exceeds the rollback tax rate the
qualified voters of the City by petition may require that an election be held to determine whether or not to reduce the tax rate
adopted for the current year to the rollback tax rate.
"Effective tax rate" means the rate that will produce last year's total tax levy (adjusted) from this year's total taxable values
(adjusted). "Adjusted" means lost values are not included in the calculation of last year's taxes and new values are not included
in this year's taxable values.
"Rollback tax rate" means the rate that will produce last year's maintenance and operation tax levy (adjusted) from this year's
values (adjusted) multiplied by 1.08 plus a rate that will produce this year's debt service from this year's values (unadjusted)
divided by the anticipated tax collection rate.
The Property Tax Code provides that certain cities and counties in the State may submit a proposition to the voters to authorize
an additional one-half cent sales tax on retail sales of taxable items. If the additional tax is levied, the effective tax rate and the
rollback tax rate calculations are required to be offset by the revenue that will be generated by the sales tax in the current year.
Reference is made to the Property Tax Code for definitive requirements for the levy and collection of ad valorem taxes and the
calculation of the various defined tax rates.
PROPERTY ASSESSMENT AND TAX PAYMENT ... Property within the City is generally assessed as of January 1 of each year.
Business inventory may, at the option of the taxpayer, be assessed as of September 1. Oil and gas reserves are assessed on the
basis of a valuation process which uses an average of the daily price of oil and gas for the prior year. Taxes become due October
1 of the same year, and become delinquent on February 1 of the following year. Taxpayers 65 years old or older are permitted by
State law to pay taxes on homesteads in four installments with the first due on February 1 of each year and the final installment
due on August 1.
PENALTIES AND INTEREST ... Charges for penalty and interest on the unpaid balance of delinquent taxes are made as follows:
After July, penalty remains at 12%, and interest increases at the rate of 1% each month. In addition, if an account is delinquent
in July, a 15% attorney's collection fee is added to the total tax penalty and interest charge. Under certain circumstances, taxes
which become delinquent on the homestead of a taxpayer 65 years old or older incur a penalty of 8% per annum with no
additional penalties or interest assessed. In general, property subject to the City's lien may be sold, in whole or in parcels,
pursuant to court order to collect the amounts due. Federal law does not allow for the collection of penalty and interest against
an estate in bankruptcy. Federal bankruptcy law provides that an automatic stay of action by creditors and other entities,
including governmental units, goes into effect with the filing of any petition in bankruptcy. The automatic stay prevents
governmental units from foreclosing on property and prevents liens for post-petition taxes from attaching to property and
obtaining secured creditor status unless, in either case, an order lifting the stay is obtained from the bankruptcy court. In many
cases post-petition taxes are paid as an administrative expense of the estate in bankruptcy or by order of the bankruptcy court.
CITY APPLICATION of TAx CODE ... The City grants an exemption to the market value of the residence homestead of persons
65 years of age or older of $60,000.
The City has granted an additional exemption of 20% of the market value of residence homesteads; minimum exemption of
$5,000.
See Table 1 for a listing of the amounts of the exemptions described above.
Ad valorem taxes are not levied by the City against the exempt value of residence homesteads for the payment of debt.
The City does not tax nonbusiness personal property; and the City contracts with the Grapevine-Colleyville Independent School
District for the collection of its taxes.
The City does not permit split payments, and discounts are not allowed.
The City does not tax freeport property.
15
Cumulative
Cumulative
Month
Penalty
Interest
Total
February
6%
1%
7%
March
7
2
9
April
8
3
11
May
9
4
13
June
10
5
15
July
12
6
18
After July, penalty remains at 12%, and interest increases at the rate of 1% each month. In addition, if an account is delinquent
in July, a 15% attorney's collection fee is added to the total tax penalty and interest charge. Under certain circumstances, taxes
which become delinquent on the homestead of a taxpayer 65 years old or older incur a penalty of 8% per annum with no
additional penalties or interest assessed. In general, property subject to the City's lien may be sold, in whole or in parcels,
pursuant to court order to collect the amounts due. Federal law does not allow for the collection of penalty and interest against
an estate in bankruptcy. Federal bankruptcy law provides that an automatic stay of action by creditors and other entities,
including governmental units, goes into effect with the filing of any petition in bankruptcy. The automatic stay prevents
governmental units from foreclosing on property and prevents liens for post-petition taxes from attaching to property and
obtaining secured creditor status unless, in either case, an order lifting the stay is obtained from the bankruptcy court. In many
cases post-petition taxes are paid as an administrative expense of the estate in bankruptcy or by order of the bankruptcy court.
CITY APPLICATION of TAx CODE ... The City grants an exemption to the market value of the residence homestead of persons
65 years of age or older of $60,000.
The City has granted an additional exemption of 20% of the market value of residence homesteads; minimum exemption of
$5,000.
See Table 1 for a listing of the amounts of the exemptions described above.
Ad valorem taxes are not levied by the City against the exempt value of residence homesteads for the payment of debt.
The City does not tax nonbusiness personal property; and the City contracts with the Grapevine-Colleyville Independent School
District for the collection of its taxes.
The City does not permit split payments, and discounts are not allowed.
The City does not tax freeport property.
15
The City does not collect the additional one-half cent sales tax for reduction of ad valorem taxes.
TAX ABATEMENT POLICY... The City does not have a tax abatement policy.
TAX INCREMENT FINANCE ZONES.. The City has established the Tax Increment Financing Reinvestment Zone Number One,
comprised of approximately 175 acres in the northeast area of the City. The tax increment base for the Reinvestment Zone
Number One established on January 1, 1996 was $7,647,325. The Reinvestment Zone Number One 2000/01 Taxable Assessed
Value is $175,396,673. The project was completed on October 31, 1997.
The City has additionally established the Tax Increment Financing Reinvestment Zone Number Two, comprised of
approximately 121.817 acres in the northeast area of the City. The tax increment base for the Reinvestment Zone Number Two
established on January 1, 1998 was $744,866. The Reinvestment Zone Number Two 2000/01 Taxable Assessed Value is
$1,495,297. No permanent improvements have been made to Reinvestment Zone Number Two.
TABLE 1 - VALUATION, EXEMPTIONS AND GENERAL OBLIGATION DEBT
2000/01 Market Valuation Established by Tarrant Appraisal District
$ 962,384,072
Less Exemptions/Reductions at 100% Market Value:
Residence Homestead Exemptions
$ 265,816,139
Over 65 Years of Age/Disabled
42,892,235
Disabled Veterans Exemptions
946,353
Pollution Control Exemptions
5,552
Solar/Wind Power Exemptions
9,774
Freeport Exemptions
437,661,571
Open -Space Land Use Reductions
42,359,282
Prorated Absolute Exemptions
148.795 (789,839,701)
2000/01 Taxable Assessed Valuation
$ 4,372,544,371
City Funded Debt Payable from Ad Valorem Taxes
General Obligation Bonds (as of 9/30/00)
$ 72,680,000
Certificates of Obligation (as of 9/30/00)
69,940,000
Equipment Acquisition Notes (as of 9/30/00)
1,375,000
The Bonds
7,000,000
The Certificates
7.880.000
Funded Debt Payable from Ad Valorem Taxes $ 158,875,000
Less Self -Supporting Debt: (2)
Combination Tax and Tax Increment Reinvestment Zone
Revenue Certificates of Obligation (as of 9/30/00) 58.600,000
Net Funded Debt Payable From Ad Valorem Taxes $ 100,275,000
Interest and Sinking Fund as of September 30, 2000 $ 2,032,121
Ratio Total Funded Debt to Taxable Assessed Valuation .................................................. 3.63%
2001 Estimated Population - 40,490
Per Capita Taxable Assessed Valuation - $107,991
Per Capita Total Funded Debt $3,924
(1) This statement of indebtedness does not include currently outstanding $26,037,560 system revenue bonds, as these bonds are
payable solely from the net revenues of the Waterworks and Sewer System (the "System"), as defined in the ordinances
authorizing the system revenue bonds.
(2) The self-supporting amount is a projection of debt by the City based on actual historical payments from the Tax Increment
Reinvestment Zone Fund. The amount of self-supporting debt is based on the percentage of revenue support as shown in
Table 10. There is no guarantee that these payments will continue in the future. If the payments are not made from the
revenues in the future, the difference will have to be paid for with ad valorem taxes.
16
TABLE 2 - TAXABLE ASSESSED VALUATIONS BY CATEGORY
NOTE:
_
Taxable Appraised
Value for Fiscal Year Ended September 30,
2001
2000
1999
% of
% of
% of
Catetiory
Amount
Total
Amount
Total
Amount
Total
Real, Residential, Single -Family
$ 1,522,401,913
29.49%
$ 1,429,819,700
30.03%
$ 1,324,311,480
33.12%
Real, Residential, Multi -Family
151,579,484
2.94%
129,208,574
2.71%
117,908,272
2.95%
Real, Vacant Lots Tracts
109,952,787
2.13%
78,468,029
1.65%
72,832,010
1.82%
Real, Acreage (Land Only)
165,569,051
3.21%
144,983,152
3.05%
144,782,450
3.62%
Real, Farm and Ranch Improvements
2,441,498
0.05%
3,191,100
0.07%
3,879,434
0.10%
Real, Commercial
932,109,580
18.06%
756,002,113
15.88%
572,358,423
14.32%
Real, Industrial
10,891,084
0.21%
9,795,363
0.21%
8,731,223
0.22%
Real and Tangible Personal, Utilities
88,123,888
1.71%
76,908,376
1.62%
66,444,170
1.66%
Real, Mobile Homes
4,239,290
0.08%
141,400
0.00%
152,200
0.00%
Tangible Personal, Business
-
0.00%
-
0.00%
-
0.00%
Tangible Personal, Commercial
2,127,859,776
41.22%
2,089,790,810
43.90%
1,646,479,365
41.18%
Tangible Personal, Industrial
40,389,885
0.78%
27,055,281
0.57%
26,974,631
0.67%
Tangible Personal, Mobile Homes
-
0.00%
3,120,287
0.07%
3,187,135
0.08%
Tangible Personal, Other
146,674
0.00%
3,768,771
0.08%
3,723,954
0.09%
Real Property, Inventory
6,679,162
0.13%
8,389,970
0.18%
6.450,400
0.16%
Total Appraised Value Before Exemptions
$ 5,162,384,072
100.00%
$ 4,760,642,926
100.00%
$ 3,998,215,147
100.00%
Adjustments
348,874,464
Less: Total Exemption/Reductions
(789,839,701)
(670,663,126)
(352,418.481)
Taxable Assessed Value
$ 4.372,544,371
$ 4,089,979.800
$ 3,994.671,130
Taxable Appraised Value for
Fiscal Year Ended September 30.
1998
1997
% of
% of
Cateeory
Amount
Total
Amount
Total
Real, Residential, Single -Family
$ 1,269,695,241
35.14%
$ 1,183,119,622
34.70%
Real, Residential, Multi -Family
98,709,403
2.73%
92,886,182
2.72%
Real, Vacant Lots Tracts
47,489,789
1.31%
46,096,677
1.35%
Real, Acreage (Land Only)
112,224,673
3.11%
94,678,310
2.78%
Real, Farm and Ranch Improvements
4,381,298
0.12%
4,158,598
0.12%
Real, Commercial
387,770,795
10.73%
298,782,743
8.76%
Real, Industrial
5,083,972
0.14%
5,384,539
0.16%
Real and Tangible Personal, Utilities
64,098,691
1.77%
60,144,766
1.76%
Real, Mobile Homes
143,000
0.00%
123,300
0.00%
Tangible Personal, Business
-
0.00%
-
0.00%
Tangible Personal, Commercial
1,582,354,352
43.79%
1,563,927,567
45.87%
Tangible Personal, Industrial
25,564,473
0.71%
40,058,697
1.18%
Tangible Personal, Mobile Homes
3,162,915
0.09%
2,884,175
0.08%
Tangible Personal, Other
3,741,821
0.10%
3,748,031
0.11%
Real Property, Inventory
8,812.490
0.24%
13.247.140
0.39%
Total Appraised Value Before Exemptions
$ 3,613,232,913
100.00%
$ 3,409,240,347
100.00%
Adjustments
(3,468,230)
(10,343,105)
Less: Total Exemption/Reductions
(356.426,226)
(274,223,594)
Taxable Assessed ValueS
_21L
$ 3,124,673 648
NOTE: Valuations shown are certified taxable assessed values reported by the Tarrant Appraisal District to the State
Comptroller of Public Accounts. Certified values are subject to change throughout the year as contested values are resolved and
the Appraisal District updates records.
17
TABLE 3 - VALUATION AND GENERAL OBLIGATION DEBT HISTORY
(1) Projected, includes the Bonds and Certificates.
TABLE 4 - TAX RATE, LEVY AND COLLECTION HISTORY
Fiscal
Year
% Current
Distribution
Ended
Net
Ratio
Interest and
09 Fiscal
Rate
Fund
Taxable
Tax Debt
Tax Debt
Funded
Year
1998
Taxable
Assessed
Outstanding
to Taxable
Debt
Endep?
Estimated
Assessed
Valuation
at End
Assessed
Per
9/30
Population
Valuation
Per Capita
of Year
Valuation
Capita
1997
36,000
$ 3,124,673,648
$ 86,796
$ 90,993,462
2.91%
$ 2,528
1998
37,946
3,253,338,457
85,736
95,546,968
2.94%
2,518
1999
39,190
3,994,671,130
101,931
103,132,152
2.58%
2,632
2000
39,800
4,089,979,800
102,763
143,995,000
3.52%
3,618
2001
40,490
4,372,544,317
107,991
152,430,000 (1)
3.49%
3,765
(1) Projected, includes the Bonds and Certificates.
TABLE 4 - TAX RATE, LEVY AND COLLECTION HISTORY
Fiscal
Year
% Current
Distribution
Ended
Tax
General
Interest and
9/30
Rate
Fund
Sinking Fund
1997
$ 0.41500
$ 0.280800
$ 0.134200
1998
0.40500
0.276996
0.128004
1999
0.38500
0.218736
0.166264
2000
0.38000
0.201983
0.178017
2001
0.37500
0.189641
0.185359
(1) Unaudited.
TABLE 5 - TEN LARGEST TAXPAYERS
Name of TaXDaver
American Airlines Inc.
Grapevine Mills Ltd. Partnership
Delta Airlines Inc.
UPS Inc./United Parcel Service
GE Capital Services
National Car Rental System, Inc.
Industrial Development International Inc.
Hertz Corp Rent-A-Car Division
GTE Directories
D/FW Hilton Hotel
16,397,041 In Process of Collection
% Current
% Total
Tax Lew
Collections
Collections
$ 12,967,402
98.79%
99.68%
13,176,597
98.70%
99.40%
13,935,727
99.10%
100.30%
15,371,388
99.41% (1)
99.77% (1)
16,397,041 In Process of Collection
GENERAL OBLIGATION DEBT LIMITATION ... No general obligation debt limitation is imposed on the City under current State
law or the City's Home Rule Charter (see "The Bonds and Certificates — Tax Rate Limitation").
18
2000/01
% of Total
Taxable
Taxable
Assessed
Assessed
Nature of Property
Valuation
Valuation
Commercial Airline
$ 667,847,407
15.27%
Regional Shopping Mall
187,728,100
4.29%
Commercial Airline
185,929,740
4.25%
Parcel Service
59,508,190
1.36%
Simuflite Training School
49,419,363
1.13%
Car Rental
48,164,562
1.10%
Trade Center
46,385,239
1.06%
Car Rental
46,264,906
1.06%
Real Estate
41,916,938
0.96%
Hotel
32.934,392
0.75%
$ 1.366.098,837
31.24%
GENERAL OBLIGATION DEBT LIMITATION ... No general obligation debt limitation is imposed on the City under current State
law or the City's Home Rule Charter (see "The Bonds and Certificates — Tax Rate Limitation").
18
TABLE 6 - TAX ADEQUACY (t)
2001 Principal and Interest Requirements $ 9,975,707
$0.2562 Tax Rate at 99.00% Collection Produces $ 9,976,219
Average Annual Principal and Interest Requirements, 2001 - 2026 $ 5,586,253
$0.1435 Tax Rate at 99.00% Collection Produces $ 5,587,773
Maximum Principal and Interest Requirements, 2002 $ 11,678,495
$0.3000 Tax Rate at 99.00% Collection Produces $ 11,681,755
(1) Includes the Bonds and Certificates, excludes self-supporting debt.
TABLE 7 - ESTIMATED OVERLAPPING DEBT
Expenditures of the various taxing entities within the territory of the City are paid out of ad valorem taxes levied by such entities
on properties within the City. Such entities are independent of the City and may incur borrowings to finance their expenditures.
This statement of direct and estimated overlapping ad valorem tax bonds ("Tax Debt") was developed from information
contained in "Texas Municipal Reports" published by the Municipal Advisory Council of Texas. Except for the amounts relating
to the City, the City has not independently verified the accuracy or completeness of such information, and no person should rely
upon such information as being accurate or complete. Furthermore, certain of the entities listed may have issued additional
bonds since the date hereof, and such entities may have programs requiring the issuance of substantial amounts of additional
bonds, the amount of which cannot be determined. The following table reflects the estimated share of overlapping Tax Debt of
the City.
Total Direct and Overlapping Funded Debt $ 294,224,301
Ratio of Direct and Overlapping Funded Debt to Taxable Assessed Valuation ........................ °
Per Capita Overlapping Funded Debt............................................................................. 7,507.64
(1) Includes the Bonds and Certificates, excludes self-supporting debt.
19
2000/01
Net
City's
Taxable
2000/01
Total
Estimated
Overlapping
Assessed
Tax
Funded
%
Funded Debt
Taxing Turisdiction
Value
Rate
Debt
Aoplicable
As of 9-30-00
City of Grapevine
$ 4,372,544,317
$ 0.375000
$ 100,275,000"'
100.00%
$ 100,275,000
Carroll Independent School District
2,287,210,782
1.885000
121,915,651
5.38%
6,559,062
Coppell Independent School District
4,409,913,056
1.600000
126,690,442
0.48%
608,114
Dallas County
113,990,507,122
0.196000
259,630,138
0.01%
25,963
Dallas County Community College District
117,401,360,744
0.050000
0
0.01%
0
Dallas County Hospital District
113,990,507,122
0.254000
0
0.01%
0
Grapevine-Colleyville Independent School District
6,462,172,129
1.582290
258,900,813
67.47%
174,680,379
Tarrant County
65,399,809,083
0.274785
127,305,000
5.24%
6,670,782
Tarrant County Hospital District
65,399,809,083
0.234070
14,158,877
5.24%
741,925
Tarrant County Junior College District
66,174,768,028
0.106410
88,990,000
5.24%
4.663.076
Total Direct and Overlapping Funded Debt $ 294,224,301
Ratio of Direct and Overlapping Funded Debt to Taxable Assessed Valuation ........................ °
Per Capita Overlapping Funded Debt............................................................................. 7,507.64
(1) Includes the Bonds and Certificates, excludes self-supporting debt.
19
DEBT INFORMATION
(1) Does not include lease/purchase obligations; includes self-supporting debt.
(2) Average life of the issue 12.975 years. Interest on the Bonds has been calculated at the average rate of 5.75% for
purposes of illustration,
(3) Average life of the issue 9.906 years, Interest on the Certificates has been calculated at the average rate of 5.72% for
purposes of illustration.
TABLE 9 - INTEREST AND SINKING FUND BUDGET PROJECTION (r)
Tax Supported Debt Service Requirements, Fiscal Year Ending 9/30/2001 .............................. $ 7,903,892
Interest and Sinking Fund Balance as of 9/30/00 ................................. $ 2,032,121
Interest and Sinking Fund Tax Levy ........................................... 7,438,795
Penalty and Interest........................................................ 65,000
Budgeted Transfers.......................................................... 389,958
Estimated Investment Income ................................................. 130,000 10,055,874
Estimated Balance, 9/30/2001................................................................. $ 2,151,982
(1) Excludes self-supporting debt service.
20
TABLE 8 - PRO -FORMA GENERAL OBLIGATION DEBT SERVICE REQUIREMENTS
Fiscal
Year
Less TIF
Total Debt
% of
Ended
Outstandirg
Debt
The Bonds (2)
The Certificates (3) Self -Supporting
Less TIF
Principal
9/30
Principal
Interest Princioal
Interest Principal
Interest
Requirements
Requirements
Retired
2001
$ 6,445,000 $
8,313,214
$
4,782,507 $
9,975,707
2002
6,800,000
7,209,258
$
720,028 $
490,000 $
844,848
4,385,639
11,678,495
2003
6,565,000
6,813,420 $
210,000
396,463
820,000
418,863
4,376,189
10,847,556
2004
6,860,000
6,416,329
220,000
384,100
880,000
359,363
4,361,839
10,757,952
2005
7,275,000
6,025,000
235,000
371,019
605,000
307,388
5,083,559
9,734,847
30.32%
2006
7,540,000
5,615,208
250,000
357,075
225,000
278,338
5,072,579
9,193,041
2007
7,615,000
5,213,982
265,000
342,269
250,000
261,713
5,080,626
8,867,338
2008
7,845,000
4,817,895
280,000
326,600
260,000
243,863
5,083,698
8,689,660
2009
8,380,000
4,414,685
295,000
310,069
240,000
228,943
5,087,704
8,780,993
2010
8,120,000
4,002,995
315,000
292,531
250,000
216,998
5,092,610
8,104,914
61.31%
2011
7,845,000
3,583,029
330,000
273,988
265,000
204,248
5,093,023
7,408,241
2012
7,030,000
3,217,768
350,000
254,438
280,000
190,483
5,114,129
6,208,559
2013
7,085,000
2,867,564
370,000
233,738
295,000
175,673
5,135,360
5,891,614
2014
7,470,000
2,498,559
395,000
211,744
310,000
159,788
5,156,323
5,888,768
2015
7,750,000
2,103,774
415,000
188,456
325,000
142,798
5,180,118
5,744,910
82.94%
2016
7,725,000
1,699,566
440,000
163,875
345,000
124,621
5,201,774
5,296,289
2017
4,060,000
1,388,100
465,000
137,856
360,000
105,320
2,591,176
3,925,100
2018
3,375,000
1,188,747
495,000
110,256
385,000
84,640
2,591,939
3,046,704
2019
3,570,000
1,002,711
525,000
80,931
410,000
62,380
2,597,814
3,053,209
2020
1,745,000
857,404
555,000
49,881
430,000
38,645
2,602,404
1,073,526
99.36%
2021
1,850,000
756,194
590,000
16,963
455,000
13,195
2,606,194
1,075,157
w:
2022
1,960,000
648,894
2,608,894
0
2023
2,075,000
533,744
2,608,744
0
2024
2,200,000
411,838
2,611,838
0
2025
2,335,000
282,588
2,617,588
0
100.00%
2026
2,475,000
145,406
2,620,406
0
100,00%
$ 143,995,000 $ 82,027.867 $ 7,000,000 $ 5,222,278 $ 7,880,000 _$ 4,462,102 $ 87,068,601 $ 143.093,896
(1) Does not include lease/purchase obligations; includes self-supporting debt.
(2) Average life of the issue 12.975 years. Interest on the Bonds has been calculated at the average rate of 5.75% for
purposes of illustration,
(3) Average life of the issue 9.906 years, Interest on the Certificates has been calculated at the average rate of 5.72% for
purposes of illustration.
TABLE 9 - INTEREST AND SINKING FUND BUDGET PROJECTION (r)
Tax Supported Debt Service Requirements, Fiscal Year Ending 9/30/2001 .............................. $ 7,903,892
Interest and Sinking Fund Balance as of 9/30/00 ................................. $ 2,032,121
Interest and Sinking Fund Tax Levy ........................................... 7,438,795
Penalty and Interest........................................................ 65,000
Budgeted Transfers.......................................................... 389,958
Estimated Investment Income ................................................. 130,000 10,055,874
Estimated Balance, 9/30/2001................................................................. $ 2,151,982
(1) Excludes self-supporting debt service.
20
TABLE 10 - COMPUTATION OF SELF-SUPPORTING DEBT
BeginningFund Balance, 9-30-00(')........................................................................................................................................ $ 5,695,250
Projected Net Tax Increment Reinvestment Zone Revenue Available for Debt Service........................................................ 3,735,000
Requirements for Tax Increment Reinvestment Zone Certificates.......................................................................................... (4,782,506)
ProjectedFund Balance, 9-30-01............................................................................................................................................. $ 4,647,744
Percentage of System Tax Increment Reinvestment Zone Revenue Certificates Self -Supporting ....................................... 100.00%
k1) V11 -1 -
TABLE 11 - AUTHORIZED BUT UNISSUED GENERAL OBLIGATION BONDS
TABLE 12 - OTHER OBLIGATIONS
The City has no unfunded debt outstanding as of September 30, 2000.
PENSION FUND ... The City provides pension benefits for all of its full-time employees through the Texas Municipal Retirement
System ("TMRS"), a State-wide administered pension plan. The City makes annual contributions to the plan equal to the
amounts accrued for pension expense. (For more detailed information concerning the retirement plan, see Appendix B,
"Excerpts from the City's Annual Financial Report".)
21
Amount
Amount
Date
Amount
Heretofore
Being
Unissued
Purpose
Authorized
Authorized
Issued
Issued
Balance
Street Improvements
12/5/98
$ 30,245,000
$ 10,480,000
$ 3,130,000
$ 16,635,000
Library Facilities
12/5/98
6,750,000
3,900,000
2,850,000
0
Park and Trail Improvements
12/5/98
1,270,000
250,000
1,020,000
0
$ 38,265,000
$ 14,630,000
$ 7,000,000
$ 16,635,000
TABLE 12 - OTHER OBLIGATIONS
The City has no unfunded debt outstanding as of September 30, 2000.
PENSION FUND ... The City provides pension benefits for all of its full-time employees through the Texas Municipal Retirement
System ("TMRS"), a State-wide administered pension plan. The City makes annual contributions to the plan equal to the
amounts accrued for pension expense. (For more detailed information concerning the retirement plan, see Appendix B,
"Excerpts from the City's Annual Financial Report".)
21
FINANCIAL INFORMATION
TABLE 13 - GENERAL FUND REVENUES AND EXPENDITURE HISTORY
Fiscal Year Ended September 30,
Reueuues 20001} 1999 1998 1997 1996
Taxes $ 26,500,000 $ 25,160,401 $ 23,365,424 $ 19,061,690 $ 17,125,907
Licenses and Permits 1,497,900 1,163,306 1,246,991 1,491,997 937,000
Intergovernmental 182,863 190,189 216,171 221,844 169,335
Charges for Services 2,623,925 2,693,057 2,522,115 1,984,238 1,427,067
Fines and Forfeitures 2,330,714 1,850,076 1,599,870 1,482,489 1,470,865
Interest and Miscellaneous 688,283 687,619 865,135 477,206 399,464
Total Revenues $ 33,823,685 $ 31,744,648 $ 29,815,706 $ 24,719,464 $ 21,529,638
Expendit»rP-z
General Government $ 5,523,518 $ 5,625,351 $ 4,792,874 $ 5,452,213 $ 3,626,510
Public Safety 15,060,840 13,245,400 12,098,657 9,965,868 8,546,355
Culture and Recreation 5,074,907 4,519,957 4,021,478 3,222,997 2,524,332
Public Works 5,,492,103 5,062,397 4,188,152 3,546,854 2,993,710
Total Expenditures $ 31,151,368 $ 28,453,105 $ 25,101,161 $ 22,187,932 $ 17,690,907
Excess (deficiency) of Revenues
Over Expenditures $ 2,672,317 $ 3,291,543 $ 4,714,545 $ 2,531,532 $ 3,838,731
Other Financing Rnnrret
Budgeted Transfers In
$
-
$
13,090
$
14,170
$
104,208
$
-
Budgeted Transfers Out
(1,454,097),
(1,900,345)
(5,610,764)
(2,406,216)
(3,807,018)
Total Transfers
$
(1,454,097)
$
(1,887,255)
$
(5,596,594)
$
(2,302,008)
$
(3,807,018)
Net Increase (Decrease)
$
1,218,220
$
1,404,288
$
(882,049)
$
229,524
$
31,713
Other Miscellaneous Adjustments
-
-
-
898,214
-
Residual Equity Transfer
-
79,788
-
(86,261)
-
Beginning Fund Balance
6,891,336
5,407,260
6,289,309
5,247,832
5,216,119
Ending Fund Balance
$
8,109,556
$
6,891,336
$
5,407,260
$
6,289,309
$
5,247,832
(1) Unaudited.
,.J
22
TABLE 14 - MUNICIPAL SALES TAX HISTORY
The City has adopted the Municipal Sales and Use Tax Act, V.A.T.C.S., Tax Code, Chapter 321, which grants the City the power to
impose and levy a 1% Local Sales and Use Tax within the City; the proceeds are credited to the General Fund and are not pledged to
the payment of the Bonds. Collections and enforcements are effected through the offices of the Comptroller of Public Accounts,
State of Texas, who remits the proceeds of the tax, after deduction of a 2% service fee, to the City monthly.
Fiscal
Year
% of
Equivalent of
Ended
Total
Ad Valorem
Ad Valorem
Per
9/30
Collected
Tax Lew
Tax Rate
Capita
1996
$ 5,603,184
46.24%
$ 0.1922
$ 160
1997
6,665,625
51.40%
0.2133
185
1998
10,556,089
80.11%
0.3245
278
1999
13,058,268
93.70%
0.3269
333
2000 (1)
14,277,000
92.88%
0.3491
359
(1) Unaudited.
FINANCIAL POLICIES
Basis of Accounting ... The City's accounting records of the governmental fund revenues and expenditures are recognized on the
modified accnual basis. Revenues are recognized in the accounting period in which they are available and measurable. Expenditures
are recognized in the accounting period in which the fund liability occurred, if measurable, except for unmatured interest on general
long-term debt.
Proprietary Fund revenues and expenses are recognized on the full accrual basis. Revenues are recognized in the accounting period in
which they are earned and become measurable. Expenses are recognized in the accounting period in which they are incurred.
Fund Balances ... It is the City's policy regarding the General Fund and Enterprise Funds that working capital resources should be
maintained at a minimum of 10% of the Fund's operating expenditure budget. The City maintains its various debt service funds in
accordance with the covenants of the bond ordinances.
Use of Bond Proceeds... The City's policy is to use bond proceeds for capital expenditures only. Such revenues are never to be used
to fund normal City operations.
Budgetary Procedures... The City Charter establishes the fiscal year as the twelve-month period beginning each October 1. Each
year between May and July, the City Manager, analyzes and then after review, submits a budget of estimated revenues and
expenditures to the City Council. Subsequently, the City Council will hold work sessions to discuss and amend the budget to coincide
with their direction of the City. Various public hearings may be held to comply with state and local statutes. The City Council will
adopt a budget prior to September 30. If the Council fails to adopt a budget then the budget presented to the Council by the City
Manager becomes the adopted budget.
During the fiscal year, budgetary control is maintained by the monthly review of departmental appropriation balances. Actual
operations are compared to the amounts set forth in the budget. Departmental appropriations that have not been expended lapse at the
end of the fiscal year. Therefore, funds that were budgeted and not used by the departments during the fiscal year are not available for
their use unless appropriated in the ensuing fiscal year's budget.
23
INVESTMENTS
The City of Grapevine invests its investable funds in investments authorized by Texas law in accordance with investment policies
approved by the City Council of the City of Grapevine. Both state law and the City's investment policies are subject to change.
LEGAL INVESTMENTS... Under Texas law, the City is authorized to invest in (1) obligations of the United States or its agencies and
instrumentalities, (2) direct obligations of the State of Texas or its agencies and instrumentalities, (3) collateralized mortgage
obligations directly issued by a federal agency or instrumentality of the United States, the underlying security for which is guaranteed
by an agency or instrumentality of the United States, (4) other obligations, the principal of and interest on which are unconditionally
guaranteed or insured by, or backed by the full faith and credit of, the State of Texas or the United States or their respective agencies
and instrumentalities, (5) obligations of states, agencies, counties, cities, and other political subdivisions of any state rated as to
investment quality by a nationally recognized investment rating firm not less than A or its equivalent, (6) certificates of deposit that
are guaranteed or insured by the Federal Deposit Insurance Corporation or are secured as to principal by obligations described in the
preceding clauses or in any other manner and amount provided by law for City deposits, (7) certificates of deposit and share
certificates issued by a state or federal credit union domiciled in the State of Texas that are guaranteed or insured by the Federal
Deposit Insurance Corporation or the National Credit Union Share Insurance Fund, or are secured as to principal by obligations
described in the clauses (1) through (5) or in any other manner and amount provided by law for City deposits, (8) fully collateralized
repurchase agreements that have a defined termination date, are fully secured by obligations described in clause (1), and are placed
through a primary government securities dealer or a financial institution doing business in the State of Texas, (9) bankers'
acceptances with the remaining term of 270 days or less, if the short-term obligations of the accepting bank or its parent are rated at
least A -i or P-1 or the equivalent by at least one nationally recognized credit rating agency, (10) commercial paper that is rated at
least A-1 or P -i or the equivalent by either (a) two nationally recognized credit rating agencies or (b) one nationally recognized credit
rating agency if the paper is fully secured by an irrevocable letter of credit issued by a U.S. or state bank, (11) bonds issued, assumed
or guaranteed by the State of Israel, (12) no-load money market mutual funds regulated by the Securities and Exchange Commission
that have a dollar weighted average portfolio maturity of 90 days or less and include in their investment objectives the maintenance of
a stable net asset value of $1 for each share, and (13) no-load mutual funds registered with the Securities and Exchange Commission
that: have an average weighted maturity of less than two years; invests exclusively in obligations described in the preceding clauses;
and are continuously rated as to investment quality by at least one nationally recognized investment rating firm of not less than AAA
or its equivalent; provided, however, that the City is not authorized to invest in the aggregate more than 15 percent of its monthly
average fund balance, excluding bond proceeds and reserves and other funds held for debt service, in such no-load mutual funds.
The City may invest in such obligations directly or through government investment pools that invest solely in such obligations
provided that the pools are rated no lower than AAA or AAA -m or an equivalent by at least one nationally recognized rating service.
The City is specifically prohibited from investing in: (1) obligations whose payment represents the coupon payments on the
outstanding principal balance of the underlying mortgage-backed security collateral and pays no principal; (2) obligations whose
payment represents the principal stream of cash flow from the underlying mortgage-backed security and bears no interest, (3)
collateralized mortgage obligations that have a stated final maturity of greater than 10 years; and (4) collateralized mortgage
obligations the interest rate of which is determined by an index that adjusts opposite to the changes in a market index.
INVESTMENT POLICIES ... Under Texas law, the City is required to invest its funds under written investment policies that primarily
emphasize safety of principal and liquidity; that address investment diversification, yield, maturity, and the quality and capability of
investment management; and that includes a list of authorized investments for City funds, maximum allowable stated maturity of any
individual investment and the maximum average dollar -weighted maturity allowed for pooled fund groups. All City funds must be
invested consistent with a formally adopted "Investment Strategy Statement" that specifically addresses each funds' investment. Each
Investment Strategy Statement will describe its objectives concerning: (1) suitability of investment type, (2) preservation and safety of
principal, (3) liquidity, (4) marketability of each investment, (5) diversification of the portfolio, and (6) yield.
Under Texas law, City investments must be made "with judgment and care, under prevailing circumstances, that a person of
prudence, discretion, and intelligence would exercise in the management of the person's own affairs, not for speculation, but for
investment, considering the probable safety of capital and the probable income to be derived." At least quarterly the investment
officers of the City shall submit an investment report detailing: (1) the investment position of the City, (2) that all investment officers
jointly prepared and signed the report, (3) the beginning market value, any additions and changes to market value and the ending
value of each pooled fund group, (4) the book value and market value of each separately listed asset at the beginning and end of the
reporting period, (5) the maturity date of each separately invested asset, (6) the account or fund or pooled fund group for which each
individual investment was acquired, and (7) the compliance of the investment portfolio as it relates to: (a) adopted investment strategy
statements and (b) state law. No person may invest City funds without express written authority from the City Council.
24
ADDITIONAL PROVISIONS ... Under Texas law the City is additionally required to: (1) annually review its adopted policies and
strategies; (2) require any investment officers' with personal business relationships or relatives with firms seeking to sell securities to
the entity to disclose the relationship and file a statement with the Texas Ethics Commission and the City Council; (3) require the
registered principal of firms seeking to sell securities to the City to: (a) receive and review the City's investment policy, (b)
acknowledge that reasonable controls and procedures have been implemented to preclude imprudent investment activities, and (c)
deliver a written statement attesting to these requirements; (4) perform an annual audit of the management controls on investments
and adherence to the City's investment policy; (5) provide specific investment training for the Treasurer, Chief Financial Officer and
investment officers; (6) restrict reverse repurchase agreements to not more than 90 days and restrict the investment of reverse
repurchase agreement funds to no greater than the term of the reverse repurchase agreement; (7) restrict the investment in non -money
market mutual funds of any portion of bond proceeds, reserves and funds held for debt service and to no more than 15% of the
entity's monthly average fund balance, excluding bond proceeds and reserves and other funds held for debt service; and (8) require
local government investment pools to conform to the new disclosure, rating, net asset value, yield calculation, and advisory board
requirements.
TABLE 15 - CURRENT INVESTMENTS
As of September 30, 2000, the City's investable funds were invested in the following categories:
(1) Includes TexPool, a local government investment pool under the control of the Texas Comptroller of Public Accounts. The
Comptroller has engaged Chase Bank of Texas, and its affiliates, to provide investment management and fund accounting
services for TexPool. First Southwest Asset Management, Inc., an affiliate of First Southwest Company, provides customer
service and marketing for the pool. TexPool currently maintains a AAAm rating from Standard & Poor's. The Pool's investment
objectives include achieving a stable net asset value of $1.00 per share. Daily investment or redemption of funds is allowed by
the participants.
25
Book
Market
Description
Percent
Value
Value
Treasury Notes/Bonds/CD/EQ
11.82%
$ 12,023,421
$ 11,870,320
Investment Pools (l)
88.18%
89.681,349
89,681,349
100.00%
$ 101,704,770
$ 101,551,669
(1) Includes TexPool, a local government investment pool under the control of the Texas Comptroller of Public Accounts. The
Comptroller has engaged Chase Bank of Texas, and its affiliates, to provide investment management and fund accounting
services for TexPool. First Southwest Asset Management, Inc., an affiliate of First Southwest Company, provides customer
service and marketing for the pool. TexPool currently maintains a AAAm rating from Standard & Poor's. The Pool's investment
objectives include achieving a stable net asset value of $1.00 per share. Daily investment or redemption of funds is allowed by
the participants.
25
TAX MATTERS
TAX EXEMPTION ... In the opinion of Vinson & Elkins L.L.P., Bond Counsel, (i) interest on the Bonds and Certificates is
excludable from gross income for federal income tax purposes under existing law and (ii) the Bonds and Certificates are not
"private activity bonds" under the Internal Revenue Code of 1986, as amended (the "Code"), and interest on the Bonds and
Certificates will not be subject to the alternative minimum tax on individuals and corporations, except as described below in the
discussion regarding the adjusted current earnings adjustment for corporations.
The Code imposes a number of requirements that must be satisfied for interest on state or local obligations, such as the Bonds
and Certificates, to be excludable from gross income for federal income tax purposes. These requirements include limitations on
the use of proceeds and the source of repayment, limitations on the investment of proceeds prior to expenditure, a requirement
that excess arbitrage earned on the investment of proceeds be paid periodically to the United States, and requirement that the
issuer file an information report with the Internal Revenue Service. The City has covenanted in the Bond Ordinance and
Certificate Ordinance that it will comply with these requirements,
Bond Counsel's opinion will assume continuing compliance with the covenants of the Bond Ordinance and Certificate Ordinance
pertaining to those sections of the Code which affect the exclusion from gross income of interest on the Bonds and Certificates
for federal income tax purposes and, in addition, will rely on representations by the City, the City's Financial Advisor and the
initial purchasers of the Bonds and Certificates with respect to matters solely within the knowledge of the City, the City's
Financial Advisor and the initial purchasers of the Bonds and Certificates, respectively, which Bond Counsel has not
independently verified. If the City should fail to comply with the covenants in the Bond Ordinance and Certificate Ordinance or
if the foregoing representations should be determined to be inaccurate or incomplete, interest on the Bonds and Certificates could
become taxable from the date of delivery of the Bonds and Certificates, regardless of the date on which the event causing such
taxability occurs.
The Code also imposes a 20% alternative minimum tax on the "alternative minimum taxable income" of a corporation, if the
amount of such alternative minimum tax is greater than the amount of the corporation's regular income tax. Generally, the
alternative minimum taxable income of a corporation (other than any S corporation, regulated investment company, REIT,
REMIC or FASIT), includes 75% of the amount by which its "adjusted current earnings" exceeds its other "alternative minimum
taxable income." Because interest on tax-exempt obligations, such as the Bonds and Certificates, is included in a corporation's
"adjusted current earnings," ownership of the Bonds and Certificates could subject a corporation to alternative minimum tax
consequences.
Under the Code, taxpayers are required to report on their returns the amount of tax-exempt interest, such as interest on the Bonds
and Certificates, received or accrued during the year.
Except as stated above, and as stated below in "Tax Accounting Treatment of Original Issue Discount Bonds and Certificates",
Bond Counsel will express no opinion as to any federal, state or local tax consequences resulting from the ownership of, receipt
of interest on, or disposition of, the Bonds and Certificates.
Prospective purchasers of the Bonds and Certificates should be aware that the ownership of tax-exempt obligations may result in
collateral federal income tax consequences to financial institutions, life insurance and property and casualty insurance
companies, certain S corporations with Subchapter C earnings and profits, individual recipients of Social Security or Railroad
Retirement benefits, taxpayers who may be deemed to have incurred or continued indebtedness to purchase or carry tax-exempt
obligations, and individuals otherwise qualifying for the earned income credit. In addition, certain foreign corporations doing
business in the U.S. may be subject to the "branch profits tax" on their effectively -connected earnings and profits including
tax-exempt interest such as interest on the Bonds and Certificates. These categories of prospective purchasers should consult
their own tax advisors as to the applicability of these consequences.
Prospective purchasers of the Bonds and Certificates should also be aware that proposed legislation is from time to time
considered by the United States Congress that, if enacted, may adversely affect the federal tax consequences of ownership or
disposition of, and, whether or not enacted, may adversely affect the value of, tax-exempt obligations, such as the Bonds and
Certificates.
Bond Counsel's opinions are based on existing law, which is subject to change. Such opinions are further based on Bond
Counsel's knowledge of facts as of the date hereof. Bond Counsel assumes no duty to update or supplement its opinions to
reflect any facts or circumstances that may thereafter come to Bond Counsel's attention or to reflect any changes in any law that
may thereafter occur or become effective.
Because the first interest payment on the Bonds and Certificates will be made more than one year after the issue date, the first
interest payment may be considered "original issue discount" under current Treasury Regulations. Although the first interest
payment will constitute interest on the Bonds and Certificates, and as such will be excludable from gross income as discussed
above, special tax accounting rules for "original issue discount" may require a portion of the first interest payment to be taken
into account for federal income tax purposes for the taxable year or years prior to the taxable year during which the first interest
26
payment is received. This may accelerate any alternative minimum taxable income consequences for corporations and any
collateral federal income tax consequences for certain purchasers (referred to in the preceding paragraph of this section).
Prospective purchasers that may be affected by such consequences should consult their tax advisors. For a discussion of
"original issue discount" on certain Bonds and Certificates, other than that represented by the fust interest payment, see the
discussion below under "Tax Account Treatment of Original Issue Discount Bonds and Certificates".
TAX ACCOUNTING TREATMENT OF ORIGINAL ISSUE DISCOUNT BONDS AND CERTIFICATES ... The initial public offering price
for certain of the Bonds and Certificates may be less than the principal amount thereof (the "Original Issue Discount Bonds and
Certificates"). In such case, Bond Counsel, under existing law and based upon the assumptions hereinafter stated, will render an
opinion to the effect that:
(a) The difference between (i) the amount payable at the maturity of each Original Issue Discount Bond or Certificate, and (ii) the
initial offering price to the public of such Original Issue Discount Bond or Certificate constitutes original issue discount with
respect to such Original Issue Discount Bond or Certificate in the hands of any owner who has purchased such Original Issue
Discount Bond or Certificate in the initial public offering of the Bonds and Certificates; and
(b) Such initial owner is entitled to exclude from gross income (as defined in Section 61 of the Code) an amount of income with
respect to such Original Issue Discount Bond or Certificate equal to that portion of the amount of such original issue discount
allocable to the period that such Original Issue Discount Bond or Certificate continues to be owned by such owner.
In the event of the redemption, sale or other taxable disposition of such Original Issue Discount Bond or Certificate prior to
stated maturity, however, the amount realized by such owner in excess of the basis of such Original Issue Discount Bond or
Certificate in the hands of such owner (adjusted upward by the portion of the original issue discount allocable to the period for
which such Original Issue Discount Bond or Certificate was held by such initial owner) is includable in gross income. (Because
original issue discount is treated as interest for federal income tax purposes, the discussion regarding interest on the Bonds and
Certificates under the caption "Tax Exemption' generally applies, except as otherwise provided below, to original issue discount
on an Original Issue Discount Bond or Certificate held by an owner who purchased such Bond or Certificate at the initial
offering price in the initial public offering of the Bonds and Certificates, and should be considered in connection with the
discussion in this portion of the Preliminary Official Statement.)
In rendering the foregoing opinion, Bond Counsel will assume, in reliance upon certain representations of the initial purchaser,
that (a) the initial purchaser has purchased the Bonds and Certificates for contemporaneous sale to the public and (b) all of the
Original Issue Discount Bonds and Certificates have been initially offered, and a substantial amount of each maturity thereof has
been sold, to the general public in arm's-length transactions for a price (and with no other consideration being included) not more
than the initial offering prices thereof. Neither the City nor Bond Counsel warrants that the Original Issue Discount Bonds and
Certificates will be offered and sold in accordance with such assumptions. Certain of the representations of the initial purchaser,
upon which Bond Counsel will rely in rendering the foregoing opinion, will be based on records or facts the initial purchaser had
no reason to believe were not correct.
Under existing law, the original issue discount on each Original Issue Discount Bond or Certificate is accrued daily to the stated
maturity thereof (in amounts calculated as described below for each six-month period ending on the date before the semi-annual
anniversary dates of the date of the Bonds and Certificates and ratably within each such six-month period) and the accrued
amount is added to an initial owner's basis for such Original Issue Discount Bond or Certificate for purposes of determining the
amount of gain or loss recognized by such owner upon the redemption, sale or other disposition thereof. The amount to be added
to basis for each accrual period is equal to (a) the sum of the issue price and the amount of original issue discount accrued in
prior periods multiplied by the yield to stated maturity (determined on the basis of compounding at the close of each accrual
period and properly adjusted for the length of the accrual period) less (b) the amounts payable as current interest during such
accrual period on such Bond.
The federal income tax consequences of the purchase, ownership, and redemption, sale or other disposition of Original Issue
Discount Bonds and Certificates which are not purchased in the initial offering at the initial offering price may be determined
according to rules which differ from those described above. All owners of Original Issue Discount Bonds and Certificates should
consult their own tax advisors with respect to the determination for federal, state, and local income tax purposes of interest
accrued upon redemption, sale or other disposition of such Original Issue Discount Bonds and Certificates and with respect to the
federal, state, local and foreign tax consequences of the purchase, ownership, redemption, sale or other disposition of such
Original Issue Discount Bonds and Certificates.
pxl
OTHER INFORMATION
RATINGS
The presently outstanding tax supported debt of the City is rated "Al" by Moody's and "A+" by S&P. The City also has issues
outstanding which are rated "Aaa" by Moody's and "AAA" by S&P through insurance by various commercial insurance
companies. Applications for contract ratings on this issue have been made to Moody's and S&P. An explanation of the
significance of such ratings may be obtained from the company furnishing the rating. The ratings reflect only the respective
views of such organization and the City makes no representation as to the appropriateness of the ratings. There is no assurance
that such ratings will continue for any given period of time or that they will not be revised downward or withdrawn entirely by
either or both of such rating companies, if in the judgment of either or both companies, circumstances so warrant. Any such
downward revision or withdrawal of such ratings, or either of them, may have an adverse effect on the market price of the Bonds
and Certificates.
LITIGATION
It is the opinion of the City Attorney and City Staff that there is no pending litigation against the City that would have a material
adverse financial impact upon the City or its operations.
REGISTRATION AND QUALIFICATION OF BONDS AND CERTIFICATES FOR SALE
The sale of the Bonds and Certificates has not been registered under the Federal Securities Act of 1933, as amended, in reliance
upon the exemption provided thereunder by Section 3(a)(2); and the Bonds and Certificates have not been qualified under the
Securities Act of Texas in reliance upon various exemptions contained therein; nor have the Bonds and Certificates been
qualified under the securities acts of any jurisdiction. The City assumes no responsibility for qualification of the Bonds and
Certificates under the securities laws of any jurisdiction in which the Bonds and Certificates may be sold, assigned, pledged,
hypothecated or otherwise transferred. This disclaimer of responsibility for qualification for sale or other disposition of the
Bonds and Certificates shall not be construed as an interpretation of any kind with regard to the availability of any exemption
from securities registration provisions.
LEGAL INVESTMENTS AND ELIGIBILITY TO SECURE PUBLIC FUNDS IN TEXAS
Section 1201.041 of the Public Security Procedures Act (Chapter 1201, Texas Government Code) provides that the Bonds and
Certificates are negotiable instruments governed by Chapter 8, Texas Business and Commerce Code, and are legal and authorized
investments for insurance companies, fiduciaries, and trustees, and for the sinking funds of municipalities or other political
subdivisions or public agencies of the State of Texas. With respect to investment in the Bonds and Certificates by municipalities
or other political subdivisions or public agencies of the State of Texas, the Public Funds Investment Act, Chapter 2256, Texas
Government Code, requires that the Bonds and Certificates be assigned a rating of "A" or its equivalent as to investment quality
by a national rating agency. See "Other Information - Ratings" herein. In addition, various provisions of the Texas Finance
Code provide that, subject to a prudent investor standard, the Bonds and Certificates are legal investments for state banks,
savings banks, trust companies with at capital of one million dollars or more, and savings and loan associations. The Bonds and
Certificates are eligible to secure deposits of any public funds of the State, its agencies, and its political subdivisions, and are
legal security for those deposits to the extent of their market value. No review by the City has been made of the laws in other
states to determine whether the Bonds or the Certificates are legal investments for various institutions in those states.
LEGAL MATTERS
The City will furnish a complete transcript of proceedings had incident to the authorization and issuance of the Bonds and
Certificates, including the unqualified approving legal opinion of the Attorney General of Texas approving the Initial Bond and
Initial Certificate and to the effect that the Bonds and Certificates are valid and legally binding obligations of the City, and based
upon examination of such transcript of proceedings, the approving legal opinion of Bond Counsel, to like effect and to the effect
that the interest on the Bonds and Certificates will be excludable from gross income for federal income tax purposes under
existing law and the Bonds and Certificates are not private activity bonds, subject to the matters described under " Tax Matters"
herein, including alternative minimum tax consequences for corporations. The customary closing papers, including a certificate
to the effect that no litigation of any nature has been filed or is then pending to restrain the issuance and delivery of the Bonds
and Certificates, or which would affect the provision made for their payment or security, or in any manner questioning the
validity of said Bonds and Certificates will also be furnished. Bond Counsel did not take part in the preparation of the Notice of
Sale and Bidding Instructions, the Official Bid Form and the Preliminary Official Statement, and such firm has not assumed any
responsibility with respect thereto or undertaken independently to verify any of the information contained therein, except that, in
its capacity as Bond Counsel, such firm has reviewed the information describing the Bonds and Certificates in the Preliminary
Official Statement to verify that such description conforms to the provisions of the Ordinance. The legal fee to be paid Bond
Counsel for services rendered in connection with the issuance of the Bonds and Certificates is contingent on the sale and delivery
of the Bonds and Certificates. The legal opinion will accompany the Bonds and Certificates deposited with DTC or will be
printed on the Bonds and Certificates in the event of the discontinuance of the Book -Entry -Only System.
28
AUTHENTICITY OF FINANCIAL DATA AND OTHER INFORMATION
The financial data and other information contained herein have been obtained from City records, audited financial statements and
other sources which are believed to be reliable. There is no guarantee that any of the assumptions or estimates contained herein
will be realized. All of the summaries of the statutes, documents and resolutions contained in this Preliminary Official Statement
are made subject to all of the provisions of such statutes, documents and resolutions. These summaries do not purport to be
complete statements of such provisions and reference is made to such documents for further information. Reference is made to
original documents in all respects.
CONTINUING DISCLOSURE OF INFORMATION
In the Ordinance, the City has made the following agreement for the benefit of the holders and beneficial owners of the Bonds
and Certificates. The City is required to observe the agreement for so long as it remains obligated to advance funds to pay the
Bonds and Certificates. Under the agreement, the City will be obligated to provide certain updated financial information and
operating data annually, and timely notice of specified material events, to certain information vendors. This information will be
available to securities brokers and others who subscribe to receive the information from the vendors.
ANNUAL REPORTS ... The City will provide certain updated financial information and operating data to certain information
vendors annually. The information to be updated includes all quantitative financial information and operating data with respect
to the City of the general type included in this Preliminary Official Statement under Tables numbered 1 through 6 and 8 through
15 and in Appendix B. The City will update and provide this information within six months after the end of each fiscal year
ending in or after 2000. The City will provide the updated information to each nationally recognized municipal securities
information repository ("NRMSIR") and to any state information depository ("SID") that is designated by the State of Texas and
approved by the State of Texas and approved by the staff of the United States Securities and Exchange Commission (the "SEC").
The City may provide updated information in full text or may incorporate by reference certain other publicly available
documents, as permitted by SEC Rule 15c2-12. The updated information will include audited financial statements, if the City
commissions an audit and it is completed by the required time. If audited financial statements are not available by the required
time, the City will provide unaudited financial statements by the required time and audited financial statements when and if such
audited financial statements become available. Any such financial statements will be prepared in accordance with the accounting
principles described in Appendix B or such other accounting principles as the City may be required to employ from time to time
pursuant to state law or regulation.
The City's current fiscal year end is September 30. Accordingly, it must provide updated information by March 31 in each year,
unless the City changes its fiscal year. If the City changes its fiscal year, it will notify each NRMSIR and the SID of the change.
The Municipal Advisory Council of Texas has been designated by the State of Texas and approved by the SEC staff as a
qualified SID. The address of the Municipal Advisory Council is 600 West 8th Street, P. 0. Box 2177, Austin, Texas 78768-
2177, and its telephone number is 512/476-6947.
MATERIAL EVENT NOTICES ... The City will also provide timely notices of certain events to certain information vendors. The
City will provide notice of any of the following events with respect to the Bonds and Certificates, if such event is material to a
decision to purchase or sell Bonds and Certificates: (1) principal and interest payment delinquencies; (2) non-payment related
defaults; (3) unscheduled draws on debt service reserves reflecting financial difficulties; (4) unscheduled draws on credit
enhancements reflecting financial difficulties; (5) substitution of credit or liquidity providers, or their failure to perform; (6)
adverse tax opinions or events affecting the tax-exempt status of the Bonds and Certificates; (7) modifications to rights of holders
of the Bonds and Certificates; (8) Bond calls; (9) defeasances; (10) release, substitution, or sale of property securing repayment
of the Bonds and Certificates; and (11) rating changes. (Neither the Bonds and Certificates nor the Ordinance make any
provision for debt service reserves, liquidity enhancement, or early redemption for the Bonds and Certificates.) In addition, the
City will provide timely notice of any failure by the City to provide information, data, or financial statements in accordance with
its agreement described above under "Annual Reports.' The City will provide each notice described in this paragraph to the SID
and to either each NRMSIR or the Municipal Securities Rulemaking Board ("MSRB").
AVAILABILITY OF INFORMATION FROM NRMSIRS AND SID ... The City has agreed to provide the foregoing information only
to NRMSIRs and the SID. The information will be available to holders of Bonds and Certificates only if the holders comply with
the procedures and pay the charges established by such information vendors or obtain the information through securities brokers
who do so.
LIMITATIONS AND AMENDMENTS ... The City has agreed to update information and to provide notices of material events only as
described above. The City has not agreed to provide other information that may be relevant or material to a complete
presentation of its financial results of operations, condition, or prospects or agreed to update any information that is provided,
except as described above. The City makes no representation or warranty concerning such information or concerning its
usefulness to a decision to invest in or sell Bonds and Certificates at any future date. The City disclaims any contractual or tort
liability for damages resulting in whole or in part from any breach of its continuing disclosure agreement or from any statement
made pursuant to its agreement, although holders of Bonds and Certificates may seek a writ of mandamus to compel the City to
comply with its agreement.
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The City may amend its continuing disclosure agreement from time to time to adapt to changed circumstances that arise from a
change in legal requirements, a change in law, or a change in the identity, nature, status, or type of operations of the City, if (i)
the agreement, as amended, would have permitted an underwriter to purchase or sell Bonds and Certificates in the offering
described herein in compliance with the Rule, taking into account any amendments or interpretations of the Rule to the date of
such amendment, as well as such changed circumstances, and (ii) either (a) the holders of a majority in aggregate principal
amount of the outstanding Bonds and Certificates consent to the amendment or (b) any person unaffiliated with the City (such as
nationally recognized bond counsel) determines that the amendment will not materially impair the interests of the holders and
beneficial owners of the Bonds and Certificates. The City may also amend or repeal the provisions of this continuing disclosure
agreement if the SEC amends or repeals the applicable provisions of the SEC Rule 15c2-12 or a court of final jurisdiction enters
judgment that such provisions of the SEC Rule 15c2-12 are invalid, but only if and to the extent that the provisions of this
sentence would not prevent an underwriter from lawfully purchasing or selling Bonds and Certificates in the primary offering of
the Bonds and Certificates. If the City so amends the agreement, it has agreed to include with the next financial information and
operating data provided in accordance with its agreement described above under "Annual Reports" an explanation, in narrative
form, of the reasons for the amendment and of the impact of any change in the type of financial information and operating data so
provided.
COMPLIANCE WITH PRIOR UNDERTAKINGS ... The City has complied in all material respects with all continuing disclosure
agreements made by it in accordance with SEC Rule 15c2-12.
INITIAL PURCHASER OF THE BONDS
After requesting competitive bids for the Bonds, the City accepted the bid of (the "Initial
Purchaser(s) of the Bonds") to purchase the Bonds at the interest rates shown on the cover page of the Official Statement at a
price of the principal amount thereof plus a cash premium (if any) of $ . The Initial Purchaser(s) of the Bonds can
give no assurance that any trading market will be developed for the Bonds after their sale by the City to the Initial Purchaser(s) of
the Bonds ..The City has no control over the price at which the Bonds are subsequently sold and the initial yield at which the
Rends NN411 be priced and reoffered will be established by and will be the responsibility of the Initial Purchaser(s) of the Bonds.
INITIAL PURCHASER OF THE CERTIFICATES
After requesting competitive bids for the Certificates, the City accepted the bid of (the "Initial
Purchaser(s) of the Certificates") to purchase the Certificates at the interest rates shown on the cover page of the Official
Statement at a price of the principal amount thereof plus a cash premium (if any) of $ . The Initial Purchaser(s) of
the Certificates can give no assurance that any trading market will be developed for the Certificates after their sale by the City to
the Initial Purchaser(s) of the Certificates . The City has no control over the price at which the Certificates are subsequently sold
and the initial yield at which the Certificates will be priced and reoffered will be established by and will be the responsibility of
the Initial Purchaser(s) of the Certificates.
FINANCIAL ADVISOR
First Southwest Company is employed as Financial Advisor to the City in connection with the issuance of the Bonds and
Certificates. The Financial Advisor's fee for services rendered with respect to the issuance of the Bonds and Certificates is
contingent upon the issuance and delivery of the Bonds and Certificates. First Southwest Company may submit a bid for the
Bonds and/or Certificates, either independently or as a member of a syndicate organized to submit a bid for the Bonds and/or
Certificates. First Southwest Company, in its capacity as Financial Advisor, has relied on the opinion of Bond Counsel and has
not verified and does not assume any responsibility for the information, covenants and representations contained in any of the
legal documents with respect to the federal income tax status of the Bonds or Certificates, or the possible impact of any present,
pending or future actions taken by any legislative or judicial bodies.
The Financial Advisor to the City has provided the following sentence for inclusion in this Preliminary Official Statement. The
Financial Advisor has reviewed the information in this Preliminary Official Statement in accordance with, and as part of, its
responsibilities to the City and, as applicable, to investors under the federal securities laws as applied to the facts and
circumstances of this transaction, but the Financial Advisor does not guarantee the accuracy or completeness of such information.
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CERTIFICATION OF THE PRELIMINARY OFFICIAL STATEMENT
At the time of payment for and delivery of the Bonds and Certificates, the City will furnish a certificate, executed by proper
officers, acting in their official capacity, to the effect that to the best of their knowledge and belief: (a) the descriptions and
statements of or pertaining to the City contained in its Preliminary Official Statement, and any addenda, supplement or
amendment thereto, on the date of such Preliminary Official Statement, on the date of sale of said Bonds and Certificates and the
acceptance of the best bid therefor, and on the date of the delivery, were and are true and correct in all material respects; (b)
insofar as the City and its affairs, including its financial affairs, are concerned, such Preliminary Official Statement did not and
does not contain an untrue statement of a material fact or omit to state a material fact required to be stated therein or necessary to
make the statements therein, in the light of the circumstances under which they were made, not misleading; (c) insofar as the
descriptions and statements, including financial data, of or pertaining to entities, other than the City, and their activities contained
in such Preliminary Official Statement are concerned, such statements and data have been obtained from sources which the City
believes to be reliable and the City has no reason to believe that they are untrue in any material respect; and (d) there has been no
material adverse change in the financial condition of the City since the date of the last audited financial statements of the City.
The Bond Ordinance and the Certificate Ordinance authorizing the issuance of the Bonds and Certificates will also approve the
form and content of this Preliminary Official Statement, and any addenda, supplement or amendment thereto, and authorize its
further use in the reoffering of the Bonds and Certificates by the Initial Purchaser(s).
ATTEST:
LINDA HUFF
City Secretary
31
WILLIAM D. TATE
Mayor
City of Grapevine, Texas
m
APPENDIX A
GENERAL INFORMATION REGARDING ME CITY
THE CrrY... The City is a political subdivision of the State of Texas incorporated in 1907 and operates as a home -rule City under the
general laws of the State of Texas and a charter approved by the voters in 1965. The City has a Council/Manager form of government
in which the mayor and six council members are elected for staggered three-year terms with elections held annually in May. Policy
making is the responsibility of, and vested in, the City Council. The Council delegates the operational authority of the City to the
City Manager who is the chief administrative officer of the City.
The City provides all the functions normally associated with a municipality including, but not limited to, public safety (i.e., police and
fire personnel and equipment), health inspection and enforcement, water and sewer facilities, streets and drainage facilities and parks
and recreational facilities. The City presently employs approximately 434 full-time staff members.
POPULATION... The City has had significant population growth during the past several years. These population estimates are as
follows:
Year
Population
Source
Year
Papulation
Source
1970
7,023
U.S. Census
1990
29,202
U.S. Census
1980
11,801
U.S. Census
1991
30,300
City Estimate
1981
15,245
Grapevine Community Profile
1992
31,400
City Estimate
1982
16,183
Grapevine Community Profile
1993
31,902
City Estimate
1983
18,121
Grapevine Community Profile
1994
32,727
City Estimate
1984
19,405
Grapevine Community Profile
1995
33,211
City Estimate
1985
22,002
Grapevine Community Profile
1996
34,950
City Estimate
1986
24,493
Grapevine Community Profile
1997
36,000
City Estimate
1987
25,853
Grapevine Community Profile
1998
37,946
City Estimate
1988
27,132
City Estimate
1999
39,190
City Estimate
1989
27,257
City Estimate
2000
39,800
City Estimate
ECONOMICS... The proximity of the Dallas/Fort Worth International Airport ("DFW") greatly influences both industrial and
residential growth of the City. DFW has been and is expected to continue to be an economic generator of employment, spin-off
businesses and tax base, all of which benefit the City and the surrounding area. Approximately 65% of the airport is within the city
limits of Grapevine.
Several large business operations owe their genesis to DFW including air cargo services, flight kitchens, rent/lease car operations and
SimuFlite Training International, a company which provides jet pilot flight training in advanced flight simulators. Seven of the ten
largest taxpayers of the City are directly related to DFW either by location or primary business sources.
DFW contains approximately 18,000 acres and directly employs some 33,000 personnel. These employees have skills ranging from
custodial level to highly trained jet aircraft pilots. A number of these people have purchased homes in the City and conduct their
daily business here.
DFW has approximately 19,400 parking spaces and is currently expanding parking facilities. Sales tax from parking fees generate
about $330,000 in annual income for the City and hotels providing service for travelers at DFW and seminar space for business
meetings generate approximately $2.0 million in annual hotel/motel tax revenue.
EMPLOYMENT... The labor market in the City continues to be strong. Employment figures furnished by Texas Employment
Commission are:
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March
Annual
Annual
Annual
Annual
Annual
2000
1999
1998
1997
1996
1995
Labor Force
21,731
21,343
20,955
20,188
20,019
19,420
Employed
21,375
20,990
20,589
19,796
19,602
18,911
Unemployed
356
353
366
392
417
509
Percent of Unemployed
1.60%
1.70%
1.70%
1.90%
2.10%
2.60%
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IN
MAJOR EMPLOYERS
Company
Dallas/Fort Worth International Airport
Grapevine/Colleyville Independent School District
United Parcel Service
GTE Directory Corporation
Baylor Medical Center
Hyatt Regency Hotel
City of Grapevine
D/FW Hilton Hotel
Super Shuttle
SimuFlite Training International
Embassy Suites
Trencor
Source: City of Grapevine, Department of Development Services.
BANKING AND FINANCIAL... Banking facilities for the City are provided by four banks, the Texas Bank of Grapevine, the First State
Bank of Grapevine, Frost Bank and a branch of NationsBank of Texas, Independent National Bank and of Bank of America. Also
located in the City is a branch of the Omni Federal Credit Union.
Source: City of Grapevine, Finance Department.
BUILDING PERMITS... The number and value of building permits issued by the City are:
Fiscal
Estimated
Residential Permits
Number of
Product
Employees
Airport
33,000
School District
1,656
Parcel Service
1,218
Yellow Pages Directory
1,200
Health Services
874
Hotel
815
City Government
434
Hotel
380
Airport Shuttle Service
320
Pilot Training
260
Hotel
250
Heavy Equipment Manufacturing
180
BANKING AND FINANCIAL... Banking facilities for the City are provided by four banks, the Texas Bank of Grapevine, the First State
Bank of Grapevine, Frost Bank and a branch of NationsBank of Texas, Independent National Bank and of Bank of America. Also
located in the City is a branch of the Omni Federal Credit Union.
Source: City of Grapevine, Finance Department.
BUILDING PERMITS... The number and value of building permits issued by the City are:
Fiscal
Commercial Permits
Residential Permits
Total
Year
Number
Number
Number
Ended
of
Dollar
of
Dollar
of
Dollar
9/30
Permits
Value
Permits
Value
Permits
Value
1996
23
$ 25,295,000
315
$ 39,236,215
338
$ 64,531,215
1997
39
105,827,449
182
40,113,663
221
145,941,112
1998
35
85,231,406
228
37,995,929
263
123,227,335
1999
32
59,920,763
185
21,026,688
217
80,947,451
2000
56
84,742,336
211
56,040,989
267
140,783,325
Source: City of Grapevine records.
RECREATION... Located approximately two miles north of the downtown area of the City lies Grapevine Lake. The lake serves as
the City reservoir and supplies approximately 50% of the water supply of the City. The lake covers a surface area of approximately
12,740 acres and has a shore line of 146 miles. The lake is 19 miles long and 2.5 miles wide at its widest point. The lake is owned
and operated by the U.S. Corps of Engineers and is a major recreation area for swimming, fishing, picnicking and camping and draws
some five million visitors each year to the area.
The City also has an extensive park system which includes tennis courts, racquetball courts, baseball and softball diamonds, football
and soccer fields, a jogging and biking trail, swimming pool and picnic areas. The City also owns and operates an 18 -hole golf
course and has plans for a 9 -hole expansion.
TRANSPORTATION... The City is in the center of a highway network that includes seven spokes of an extensive highway system; six
U.S. highways, seven major state highways and one interstate highway. This network connects the City to all major entrances to both
Dallas and Fort Worth and with major highway systems both north/south and east/west.
There are 43 motor freight lines providing service to the City and the City is within the Dallas and Fort Worth Commercial Zone for
deliveries. Railroad service is offered by the Cotton Belt Railroad and the Southern Pacific Railroad, both with daily switching
service. Greyhound/Trailways Bus Lines provides the City with surface bus transportation.
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HOTEL AND CONVENTION FACILITIES... There are three major hotels in the City and several other hotels and motels adjacent to the
City near DFW.
The Hyatt Regency DFW is located on the airport and provides 1,450 rooms, one of the largest hotels in Texas. The Hyatt provides
more than 130,000 square feet of meeting and convention facilities, five dining facilities, availability to two 18 -hole championship
golf courses, tennis courts, heated swimming pool and health spa and jogging trails.
The D/FW Airport Hilton and Executive Conference Center is a 400 -room hotel located 2.5 miles north of DFW offering a 14,400
square foot exhibit hall and ballroom that can accommodate 900 banquet guests. Also provided are three restaurants, tennis courts,
racquetball courts, indoor and outdoor swimming pools, steam room, health club and lighted jogging trails. Adjacent to the hotel is
the Austin Ranch where horseback riding and other western events are available to hotel guests.
The Embassy Suites Conference Center is a 12 -story, 329 -room hotel located just north of DFW Airport. The Embassy Suites offers
a 12,640 square foot conference center and ballroom, a 3,432 square foot junior ballroom and 14 other meeting rooms. Also
provided is a state-of-the-art fitness center, a heated indoor swimming pool, complimentary, cooked -to -order breakfast and 24-hour
in -room dining.
EDUCATION. . . Secondary education is provided to the City by the Grapevine-Colleyville Independent School District (the
'District"). The District provides seventeen campuses, all air conditioned, as follows:
2 High school
4 Middle schools
11 Elementary schools
In addition to the campuses, the District also owns an administration/service center, an auditorium and a complete athletic complex.
Historical school enrollment figures are:
1982
3,646
1991
8,706
1983
3,732
1992
9,459
1984
4,037
1993
10,878
1985
4,675
1994
10,957
1986
5,617
1995
11,316
1987
6,107
1996
12,373
1988
6,604
1997
12,893
1989
7,156
1998
13,319
1990
7,984
1999
13,159
Source: Grapevine-Colleyville Independent School District.
Educational opportunities beyond the secondary level are numerous and within easy driving distance of the City. Some of the
colleges and universities within a 50 mile radius are as follows:
College/University
Location
Texas Christian University
Fort Worth, Texas
Texas Wesleyan University
Fort Worth, Texas
Tarrant County College
Fort Worth, Texas
University of Texas at Arlington
Arlington, Texas
University of North Texas
Denton, Texas
Texas Women's University
Denton, Texas
Southern Methodist University
Dallas, Texas
Dallas Baptist University
Dallas, Texas
Dallas Community College
Dallas, Texas
University of Dallas
Irving, Texas
University of Texas at Dallas
Richardson, Texas
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