HomeMy WebLinkAbout23-78 RESOLUTIONRESOLUTION NO. -7f
A RESOLUTION APPROVING THE FORM AND CONTENT OF THE NOTICE
AND SALE AND BIDDING INSTRUCTIONS, OFFICIAL BID FORM, AND
OFFICIAL STATEMENT RELATIVE TO THE SALE OF $800,000 CITY OF
FAYETTEVILLE, ARKANSAS GENERAL OBLIGATION IMPROVEMENT BONDS.
WHEREAS, the Board of Directors of the City of Fayetteville,
Arkansas desires to receive bids for the purchase of $800,000.00
General Obligation Improvement Bonds; and
WHEREAS, First Southwest Company, Dallas, Texas, has been
authorized and requested to prepare a Notice of Sale and
Bidding Instructions, Official Bid Form and Official Statement
containing financial, economic and other data necessary and
desirable to attract bids for said bonds.
NOW, THEREFORE, BE IT RESOLVED BY THE BOARD OF DIRECTORS OF
THE CITY OF FAYETTEVILLE, ARKANSAS:
That the Notice of Sale and the Bidding Instructions,
Official Bid Form, and Official Statement, marked exhibits "A"
"B" and "C" respectively, attached hereto and made a part hereof
relative to the sale of $800,000.00 City of Fayetteville , Arkansas
General Obligation Bonds are hereby approved and ratified, both
as to form and content, and First Southwest Company, Dallas,
Texas is hereby authorized to distribute said Notice of Sale
and Bidding Instructions, Official Bid Form and Official Statement
to prospective bidders for, and
/purchasers of, the bonds.
PASSED AND APPROVED this r day of , 1978, by
the Board of Directors of the City of Fayetteville, Arkansas,
convened in regular session with a lawful quorum present.
MAYOR
ATTEST:
tie .2i2fatta>tet44,-19-9f'
CITY CLERK
o
MICROFILMED
DATE OCT 2 0 19t
REEL l 1 L
iy
•
Xh,bil•
Pe5 23-12
FAYETTEVILLE
ARKANSAS
$800,000
GENERAL OBLIGATION IMPROVEMENT BONDS
SELLING TUESDAY, APRIL 18,_ 1978 AT 3:30 PM, CST
•
OFFICIAL STATEMENT
Dated April 4, 1978
$800,000 .
CITY OF FAYETTEVILLE, ARKANSAS
(Washington County)
General Obligation Improvement Bonds
Dated: January 1, 1978 Denomination: $5,000
Principal and semi-annual interest (January 1 and July 1) payable at
First interest coupon due January 1, 1979.
Bonds registrable as to both principal and interest.
INTEREST EXEMPT, IN THE OPINION OF BOND COUNSEL, FROM PRESENT
FEDERAL INCOME TAXES UNDER EXISTING STATUTES,
REGULATIONS, RULINGS AND COURT DECISIONS
These bonds (the "Bonds") are the total amount authorized at an election held November 29, 1977 and
constitute direct and general obligations of the City to which its full faith, credit, and taxing power is pledged,
including particularly collections of a continuing annual special tax of. two (2) mills levied on taxable
property located within the City as authorized by Amendment No. 13 of the Constitution of the State of
Arkansas. See Security for Payment, Page 4. The City of Fayetteville has never defaulted.
MATURITY SCHEDULE
(Due January 1)
Amount Maturity Rate Yield Amount Maturity Rate Yield
$50,000
50,000
55.000
60,000
60,000
65,000
981
982
983
984
985
986
$70,000
70,000
75,000
80.000
80,000
85.000
987*
988*
989*
990*
991*
992*
*The City reserves the right, at its option, to redeem Bonds maturing January 1, 1987 through
January 1, 1992, both inclusive, in whole, or in part in inverse numerical order, on January 1, 1986, or any
interest payment date thereafter, at the par value thereof plus accrued interest to the date fixed for
redemption.
The General Obligation Improvement Bonds are offered for delivery when, as and if issued and subject
to the unqualified approving opinion of Messrs. Friday, Eldredge & Clark, Bond Counsel, Little Rock,
Arkansas, whose approving opinion will be printed on the Bonds. It is expected that the Bonds will be
delivered on or about May 23, 1978.
TABLE OF CONTENTS
This Official Statement does not constitute an offer to sell Bonds in any jurisdiction to any person to
whom it is unlawful to make such offer in such jurisdiction. No dealer, salesman, or any other person has been
authorized to give any information or make any representation, other than those contained herein, in
connection with the offering of these Bonds, and if given or made, such information or representation must not
be relied upon. The information and expressions of opinion herein are subject to change without notice and
neither the delivery of this Official Statement nor any sale made hereunder shall, under any circumstances,
create any implication that there has been no change in the affairs of the City since the date hereof.
Page
Board of Directors n
Appointed Officials 3
Consultants and Advisors 3
Security for Payment 4
Valuation and Debt Information 4
Non -Funded Debi 4
Tax Rate and Funded Debt Limitations 4
Tax Adequacy 5
Adequacy of Two Mill Tax Levy 5
Valuation and Funded Debt History 6
Taxable Assessed Valuations By Category 6
Estimated Overlapping Funded Debt Payable From Ad Valorem Tax es 6
Tax Data
i
Municipal Sales Tax .. 8
Proceeds 8
Ten Largest Taxpayers 8
Debt Service Requirements 9
Authorized But Unissued General Obligation Bonds 9
Pension Funds 9
General Fund Statement of Revenues, Expenditures and Fund Balance I O
Waterworks and Sewer System 11
Condensed Statement of Operations 11
Value of the System 12
City's Equity in System 12
Coverage and Fund Balances 12
Authorized But Unissued Revenue Bonds 13
Monthly Water Rate 13
Monthly Sewer Rate 13
Waterworks System 14
Ten Largest Water Users 15
Sewer System .. 15
The City 16
Ratings 19
Tax Exemption 19
Registration and Qualification of Bonds for Sale 19
Legal Investments in A rkansas 19
Legal Opinions and No -Litigation Certificate 19
Authenticity of Financial Information 20
Certification of the Official Statement 20
General Fund Financial Statements Appendix
The cover page hereof, this page, the appendix included herein and any addendum, supplement or
amendment hereto, are part of the Official Statement.
2
Name
Ernest Lancaster
Mayor
John Todd
Vice Mayor
Paul Noland
Director
Al Hughes
Director
David Malone
Director
Philip Colwell
Director
Ann Henry
Director
Name
Donald L. Grimes
Patrick J. Tobin
Darlene M. Westbrook
Don Bunn
Dale Clark
James N. McCord
BOARD OF DIRECTORS
Term Expires
December 31, 1978
December 31, 1978
December 31, 1978
December 31, 1978
December 31, 1980
December 31, 1980
December 31, 1980
Length of Service Occupation
7 years Electric operations manager
3 years
5 years
3 years
Professor, Business Management
University of Arkansas
Professor, Animal Science
University of Arkansas
Real Estate Broker
1 year Assistant Dean, Law School
University of Arkansas
1 year Pharmacist
1/2 year Civic leader and Homemaker
APPOINTED OFFICIALS
Position
City Manager
City Controller
City Clerk
City Engineer
Parks & Recreation Director
City Attorney
CONSULTANTS AND ADVISORS
Length of
Service
6 years
8 years
4 years
6 months
9 years
4 years
Certified Public Accountants Douglas Walker & Co.
Fayetteville, Arkansas
Consulting Engineers McGoodwin, Williams & Yates
Fayetteville, Arkansas
McClelland Consulting Engineers
Fayetteville, Arkansas
Architects Paul Young & Associates
Fayetteville, Arkansas
Warren D. Segraves & Associates
Fayetteville, Arkansas
Rate Consultants Black and Veatch
Dallas, Texas
Bond Counsel Friday, Eldredge and Clark
Little Rock, Arkansas
FINANCIAL ADVISORS
First Southwest Company
Mercantile Bank Building
Dallas, Texas
3
SECURITY FOR PAYMENT
These General Obligation Improvement Bonds (the "Bonds") constitute general obligations of the City
and the City pledges to the payment of the Bonds its full faith, credit and taxing power, including particularly
collections of a continuing annual ad valorem tax of two (2) mills to be levied on the assessed valuation of all
taxable real and personal property located within the City. The two mill tax will be levied in 1979 and
annually thereafter until either the principal of and interest on the Bonds has been paid, provision has been
made for the payment thereof from any other available revenue source of the City, or available funds in the
Interest and Sinking Fund for the Bonds exceeds the principal and interest requirements to come due on the
Bonds in any one year.
VALUATION AND DEBT INFORMATION
1978 Taxable Assessed Valuation (20% of Actual)(1)
City Funded Debt Payable From Ad Valorem Taxes:
General Obligation Improvement Bonds (as of February 28, 1978)
The Bonds
Total(2)
Ratio Total Funded Debt to Taxable Assessed Valuation
1970 U.S. Census Population — 30,729
1976 Estimated Population — 34,034*
Per Capita Taxable Assessed Valuation — $1,762.39
Per Capita Total Debt — $23.51
Area — 39.3 square miles
$59,981,280
$ —0-
800,000
$ 800,000
1.33%
*Source: 1976 Special Census conducted for the City of Fayetteville by U.S. Department of Commerce
Bureau of The Census.
NorE 1: The City does not grant any exemptions.
Non 2: The above statement of indebtedness does not include $10.526,000 outstanding Waterworks
and Sewer Revenue Bonds, nor $1.500,000 additional Waterworks and Sewer Revenue Bonds to be offered
for sale simultaneously with the General Obligation Improvement Bonds offered herein, as these bonds are
payable solely from the net income of the waterworks and sewer system.
1978
NON -FUNDED DEBT
The City has no unfunded debt outstanding or lease -purchase agreements in effect as of February 28,
TAX RATE AND FUNDED DEBT LIMITATIONS
Tax Rate Limitations
General Operations. A limit of five mills is imposed by the Constitution of the State of Arkansas on
the City for operations of the City's General Fund. Taxes above the five mill limit may be levied only for
specific purposes and upon a favorable vote of the qualified electorate. Such taxes that are currently
authorized are one mill for each of the Firemen's Retirement Salary and Pension Fund and the Policemen's
Retirement Salary and Pension Fund.
4
•
•
General Obligation Debt Retirement. Amendment Number 13 of the Constitution of the State of
Arkansas limits the maximum tax which may be levied to pay the principal of and interest on bonds issued
for general improvements to five mills, said tax subject to a favorable vote of the qualified electorate. The tax
available to pay these $800,000 General Obligation Improvement Bonds is strictly limited to two mills within
this available five mill limitation.
Funded Debt Limitation
Amendment Number 13 of the Constitution of the' State of Arkansas limits the amount of General
Obligation debt which may be incurred to twenty-five percent of taxable assessed values within the City.
TAX ADEQUACY
Based on 1978 Taxable Assessed Valuation
All General Obligation Bonds (including these bonds):
1979 Principal and Interest Requirements $ 60,000
2 Mill Tax Rate @ 95% Collection Produces 113,964
Average Annual Principal and Interest Requirements, 1981-92 - $ 88,625
2 Mill Tax Rate @ 95% Collection Produces 113,964
ADEQUACY OF TWO MILL TAX LEVY
Based on 1978 Taxable Assessed Valuation
Fiscal Year Ending Estimated Debt Two Mill Levy Cumulative
12-31 Service Requirements ® 95% Collection Surplus Surplus
1979 S60,000 $113,964 $53,964 S 53,964
1980 40,000 113,964 73,964 127,928
1981 88,750 113,964 25,214 153,142
1982 86,250 113,964 27,714 180,856
1983 88,625 113,964 25,339 206,195
1984 90,750 113,964 23,214 229,409
1985 87,750 113,964 26,214 255,623
1986 89,625 113,964 24,339 279,962
1987 91,250 113,964 22,714 302,676
1988 87,750 113,964 26,214 328,890
1989 89,125 113,964 24,839 353,729
1990 90,250 113,964 23,714 377,443
1991 86,250 113,964 27,714 405,157
1992 87,125 113,964 26,839 431,996
NOTE: Under Arkansas law the City can apply the proceeds of the two mill tax pledged for the
payment of these $800,000 Bonds only to the payment of these General Obligation Improvement Bonds and
to no other source. As a result, when sufficient funds are accumulated in the Bond Fund to fully fund the
Bonds the City must redeem the Bonds in advance of maturity, assuming the Bonds are properly callable at
that time, under the call provisions as outlined herein.
5
Fiscal
Year Ending
December 31,
1970
1971
1972
1973
1974
1975
1976
1977
1978
*Estimated.
Tax Year Ended
December 31,
1973
1974
1975
1976
1977
1978
VALUATION AND FUNDED DEBT HISTORY
Taxable
Assessed
Valuation
$34,118,555
37,243,205
40,506,285
44,466,115
46,413,135
48,787,980
52,057,455
55,407,980
59,981,280
Funded Debt
Outstanding
at End
of Year
$777.000
654,000
620,000
479,000
445,000
409,000
0
0
800,000*
TAXABLE ASSESSED VALUATIONS BY CATEGORY
Personal Property
Amount
$10,388,170
10,344,345
11,186,395
12,568,765
14,019,530
15,402,505
% of
Total
Value
23.36
22.29
22.93
24.14
25.30
25.68
Real Property
Amount
$30,726,530
32,522,215
33,785,305
35,349,425
36,894,825
39,293,965
% of
Total
Value
69.10
70.07
69.25
67.90
66.59
65.51
Utility Property
% of
Total
Amount Value
$3,351,415
3,546,575
3,816,280
4,139,265
4,493,625
5,284,810
7.54
7.64
7.82
7.96
8.11
8.81
Ratio Funded
Debt to
Taxable
Assessed
Valuation
2.28%
I.76%
1.53%
1.08%
.96%
.84%
0%
0%
1.33%
Total
Assessed
Valuation
$44,466,115
46,413,135
48,787,980
52,057,455
55,407,980
59,981,280
ESTIMATED OVERLAPPING FUNDED PAYABLE FROM AD VALOREM TAXES
As of December 31, 1977
Taxing Jurisdiction
Total
Funded Debt
City of Fayetteville $ 800,000
Fayetteville School District No. 1 2,510,000
Washington County
Springdale School District No. 50 5,243,000
Total Overlapping Funded Debt
Ratio Overlapping Funded Debt to Taxable Assessed Valuation
Estimated % Overlapping
Applicable Funded Debt
100.00% $ 800,000
93.45% 2,345,595
39.1I% —
3.52% 184,554
$3,330,149
5.55%
Per Capita Overlapping Funded Debt — $97.85
6
Fiscal
Year Ending Total
December 31, Tax Rate
General
Fund
TAX DATA
Interest
and
Sinking
Fund
1970 16 mills 10 mills 4 mills
1971 16 mills 10 mills 4 mills
1972 16 mills 10 mills 4 mills
1973 16 mills 10 mills 4 mills
1974 16 mills 10 mills 4 mills
1975 I I mills 5 mills 4 mills
1976 7 mills 5 mills 0 mills
1977 7 mills 5 mills 0 mills
1978 7 mills 5 mills 0 mills
Fire
and
Police Total
Pension Fund Tax Let)/
*Includes delinquent tax collections from prior years.
2 mills $545,897
2 mills 595,891
2 mills 648,101
2 mills 711,458
2 mills 742,610
2 mills 536,668
2 mills 364,402
2 mills 387,856
2 mills 419,869
Total %Total
Collections Collections
$541,275
608,447
642,920
656,942
736,409
484,347
364,672
358,295
In process
99.15%
102.11%
99.20%
92.34%
99.17%
90.25%
100.07%
92.38%
of collection
Assessment, Levy and Collection of Arkansas Property Taxes
Under the Arkansas Constitution, as amended, all property is subject to taxation according to its value,
except for the following exempt categories: (I) public property; (2) churches; (3) cemeteries; (4) school
buildings and apparatus; (5) libraries and grounds used for school purposes; (6) buildings, grounds and
materials used for public charity; and (7) intangible personal property to the extent the General Assembly
has exempted it from taxation, provided that it be taxed at a lower rate, or provided for its taxation on a basis
other than ad valorem. Intangible person property is exempt from taxation under present law. Historically,
intangible.personal property has not been subject to ad valorem taxation in Arkansas.
The elected assessor of each Arkansas County assesses the value of all real and tangible personal
property located within the county. Property is voluntarily rendered for assessment between January 1 and
April 10 of each year with penalties provided for late rendering. Assessed value is an amount equal to 20% of
the true or market value and levied millage is applied against this assessed value to determine the tax owed.
Tax statements are mailed after the third Thursday in February in the following year. Taxes become due
March 1 and become delinquent after October 10 of the same year. Delinquent personal property taxes may
be collected by distraint and public sale of the property; delinquent real property taxes may be collected by
public sale of the property or striking it off (forfeiture) to the State of Arkansas.
Split payments are allowed: 1/4 by the third Monday in April; 1/4 by the third Monday in July; 1/2 by
October 10. No discounts are allowed. Charges for penalty and interest are made as follows:
Interest — No charges for interest are made.
Penalties — A total of 10% of the delinquent tax is assessed in penalties after October 10 for both
real and personal property. A 25% additional penalty may be assessed by the delinquent tax collector
on personal property only.
7
VP
MUNICIPAL SALES TAX
The State, from collection of its 3% sales tax, allocates a specified dollar amount bi-annually to a
municipal turnback fund. From this fund the State remits to the City its percentage of the fund based upon its
population in relation to the State's total population. All population figures are based upon the U.S.
Department of Commerce Bureau of the Census figures in all instances. The City of Fayetteville's percentage
is based upon the 1976 Special Census conducted by the Bureau of the Census. Per capita turnbacks are as
follows: 1976 — $10.54 (actual); 1977 — $12.30 (estimated); and 1978 — $13.50 (estimated). Revenue from
this source to the City of Fayetteville has been as follows:
Fiscal To of Equivalent of
Year Ending Total Ad Valorem Ad Valorem
December 31, Collected Tax Levy Tax Rate
1970
1971
1972
1973
1974
1975
1976
1977
$129,480
141,105
163,134
192,600
333.760*
347,389
350.758
431,314**
*Increased State allotment to municipal turnback fund.
**Unaudited.
23.72
23.68
25.1?
27.07
44.94
64.73
96.26
89.92
3.80 mills
3.79 mills
4.03 mills
4.33 mills
7.19 mills
7.12 mills
6.74 mills
7.79 mills
PROCEEDS
Proceeds from the sale of these $800,000 General Obligation Improvement Bonds will be used for an
expansion of the existing City Library and the acquisition., construction and equipping of a park or parks.
TEN LARGEST TAXPAYERS
Name of Taxpayer
Southwestern Bell Telephone Company
Southwestern Electric Power Company
Standard Register Company
Baldwin Corporation
Campbell Soup Company
Northwest Arkansas Plaza Mall
Arkansas Western Gas Company
Southgate Shopping Center
Evelyn Hills Shopping Center
Maple Manor Apartments
Nature of Property
Telephone Utility
Electric Utility
Paper Form Manufacturer
Piano and Electronics Manufacturer
Food Processing Plant
Shopping Mall
Gas Utility
Shopping Center
Shopping Center
Apartment Complex
8
1978 Taxable
Assessed
Valuation
4n of Total
Taxable
Assessed
Valuation
$ 2,861 260 4.77%
2,198,630 3.67%
1,117,105 1.88%
1,044,140 1.74%
1,024,557 1.71%
908,050 1.51%
537,040 0.90%
306,850 0.51%
274.310 0.46%
266.730 0.44%.
$10,548,672 17.59%
Fiscal Year
Ending
December 31,
DEBT SERVICE REQUIREMENTS
GENERAL OBLIGATION IMPROVEMENT BONDS
This $800,000 Issue % of Principal
Principal
Interest Total Retired
1979 $ - $ 60,000 $ 60,000.
1980 - 40,000 40,000
1981 50,000 38,750 88,750
1982 50,000 36,250 86,250
1983 55,000 33,625 88,625
1984 60,000 30,750 90,750
1985 60,000 27,750 87,750
1986 65,000 24,625 89,625
1987 70,000 21,250 91,250
1988 70,000 17,750 87,750
1989 75,000 14,125 89,125
1990 80,000 10,250 90,250
1991 80,000 6,250 86,250
1992 85,000 2,125 87,125
$800,000 $363,500 $1,163,500
19.38%
60.00%
100.00%
NOTE: Interest on these $800,000 Bonds calculated at 5.00% for purposes of illustration.
AUTHORIZED BUT UNISSUED GENERAL OBLIGATION BONDS
Purpose
Library Improvements
Park Improvements
Amount Amount
Date Amount Heretofore Being Unissued
Authorized Authorized Issued Issued Balance
November 29, 1977 $200,000 $ -0- $200,000 $ -0-
November 29, 1977 600,000 -0- 600,000 -0-
$800,000 $ -0- $800,000 $ -0-
PENSION FUNDS
Retirement Plan
The Retirement Plan covers all full-time employees of the City at least 25 years of age and less than 60
years of age on the date of their employment which are not covered by the Firemen's or Policemen's
Retirement Salary and Pension Fund. The employee contributes 3% of his total salary with the City
contributing the balance required to keep the plan actuarially sound. The plan purchases for each participant
a term insurance policy equal to sixty-seven times his estimated monthly retirement benefit, recalculated
yearly, during his employment. Upon retirement the employee has several benefit options, all of which are
funded with reserves administered by a Trustee. As of May 31, 1977 the Vested Values computed exceeded
the total assets of the Trust by $18,314. According to an actuarial study this condition is due to a change in
the vesting provision of the plan and should correct itself in a very few years.
Firemen's Retirement Salary and Pension Fund
All firemen, including volunteer firemen, are covered under this plan. The full-time fireman contributes
3% of his total salary to the plan. The volunteer fireman pays a specified amount annually. The balance of the
9
plan is funded through collections of a special one mill tax levied by the City. The employee is eligible for
retirement after twenty years of service, and under certain conditions prior to this time. If the employee
terminates prior to his eligibility for retirement, he receives back all contributions made to the fund by him.
The City of Fayetteville does not have any unfunded accrued liability in the plan. All benefit levels and tax
funding are established by Arkansas Statute, and an actuarial study of all Statutory Retirement Plans in the
State of Arkansas is currently underway. Should any funding deficiencies be found, appropriate legislation
by the State of Arkansas would be required, either to provide for additional funding or decreased benefits.
Policemen's Retirement Salary and Pension Fund
All policemen are covered under this plan. The employee contributes 3% of his total salary to the plan.
The balance of the plan is funded through collections of a special one mill tax levied by the City, a portion of
municipal court fines, and a portion of parking ticket proceeds. The employee is eligible for retirement after
twenty years of service, and under certain conditions prior to this time. If the employee terminates prior to
this eligibility for retirement, he receives back all contributions made to the fund by him. The City of
Fayetteville does not have any unfunded accrued liability in the plan. In the event the plan develops a funding
deficiency, an adjustment in the apportionment of the various sources of revenue to the plan would be
necessary.
STATEMENT OF REVENUES, EXPENDITURES, AND FUND BALANCE
GENERAL FUND
Fiscal Year Ended December 31,
1976 1975 1974 1973 1972
Fund Balance - Beginning of Year $ 702,024 $ 624,634 $ 590,433 $ 522,650 $ 327,379
Revenues:
General Property Taxes $ 251,057 $ 236,083 $ 415,342 $ 378,931 $ 365,325
Franchise Taxes 339,133 233,400 206,213 193,131 178,857
Licenses and Permits 175,721 65,353 60,275 59,712 67,717
Fines and Penalties 184,229 198,227 196,192 213,098 228,896
Use of Money and Property 189,929 182,548 136,857 111,556 92,025
Other Revenues 481,591 698,952 661,519 290,099 242,683
Total Revenues $1,621,660 $1,614,563 $1,676,398 $1,246,527 $1,175,503
Expenditures:
General Government $ 296,668 $ 287,972 $ 280,825 $ 211,600 $ 176,052
Public Safety 849,442 848,941 815,091 752,898 644,139
Recreation 112,220 114,088 355,602 101,884 80,625
Miscellaneous 144,674 286,172 190,679 114,925 87,790
Total Expenditures $1,403,004 $1,537,173 $1,642,197 $1,181,307 $ 988,606
Excess of Revenues over Expenditures $ 218,656 $ 77,390 $ 34,201 $ 65,220 $ 186,897
Fund Balance - Year End $ 920,680 $ 702,024 $ 624,634 $ 590,433 $ 522,650
10
WATERWORKS AND SEWER SYSTEM
CONDENSED STATEMENT OF OPERATIONS
REVENUE:
Water Sales
Sewer Service Charges
Miscellaneous
Interest on Investments
Total
EXPENSE:
Water Supply and Treatment
Water Distribution and
Transmission
Sewage Collection and Treatment
Pollution Control Plant
Chemical and Laboratory Control
Customer Accounting and
Collection
Administrative and General
Total
NET AVAILABLE FOR DEBT SERVICE
Water Customers
Fiscal Year Ended July 31,
1977
1976
1975
1974
1973
$1,529,248 $1,337,662 $1,283,382 $1,203,787 $1,228,557
1,131,156 1,033,603 979,319 975,139 935,022
74,420 79,861 88,529 70,886 63,571
250,566 257,390 246,043 143,761 82,230
$2,985,390 $2,708,516 $2,597,273 $2,393,573 $2,309,380
$ 414,626 $ 304,987 $ 263,954 $ 333,289 $ 203,667
137,114
125,664
309,089
7,549
238,839
183,868
$1,416,749
$1,568,641
72,681
155,187
257,331
7,076
222,435
173,254
$1,192,951
$1,515,565
12,363 11,710
Sewer Customers 9,533
11
9,161
87,730
126,378
238,713
6,914
190,160
167,439
$1,081,288
$1,515,985
91,286 141,786
109,850 57,460
190,284 182,514
5,475 5,461
191,212 130,951
195,480 160,810
$1,116,876 $ 882,649
$1,276,697 $1,426,731
11,375 11,172 10,833
8,808 8,628 8,292
VALUE OF THE SYSTEM
Fiscal Year Ended July 31.
1977
4976
1975
1974 1973
Waterworks System $13,610.156 $12,782,345 $12,045,137 SI 1.262,174 $10,562,650
Sewer System 8,426,982 8,069,305 7,947,475 7,751,731 7,163.470
Total Value 522,037,138 $20,851,650 519,992,612 $19.013,905 $17,726.120
Reserve for Depreciation:
Waterworks System S 3,958,119 $ 3,668.398
Sewer System 2.519,284 2,275,379
Total Depreciation $ 6,477,403 S 5,943,777
Net System Ni slue $15,559,735 $14.907,873
Resources:
Net System Value
Construction in Progress
Cash and Investments
Reserve Fund Assets
Other Resources
Total Resources
Obligations:
Revenue Bonds Payable
Other Obligations
Total Obligations
City's Equity in System
S 3,399,792
2,035.644
$ 5,435.436
$14,557,176
CITY'S EQUITY IN SYSTEM
$ 3,136,492
1,806,907
5 4.943,399
514.070,506
Fiscal Year Ended July 31,
5 2,892,358
1.578,650
S 4.471,008
513.255.112
1977
515,559,735
5,193,915
1,526,624
2.813,571
668,262
$25,762,107
$10,566,000
766,863
$11,332.863
$14,429,244
% of Equity in System
56.01
1976
$14,907.873
4,536,038
1,455,969
3.066,092
587,938
524,553,910
$10,801,000
908,907
S11,709,907
512,844,003
52.31%
1975
$14,557,176
1,248,497
1,140,809
3,998,454
579,546
$21,524,482
1974
$14,070,506
376,698
1.013,998
1.505,903
603,061
$17,570,166
510.994,000 $ 8,680.000
830,531 258.824
$11,824,531 5 8,938,824
$ 9,699,951 5 8.631,342
45,06%
COVERAGE AND FUND BALANCES
49.12%
Average Annual Principal and Interest Requirements, 1978-2002 ..................................
Coverage of Average Requirements by July 31, 1977 Net Income ....................... ....... ..
Maximum Principal and Interest Requirements, 1980
Coverage of Maximum Requirements by July 31, 1977 Net Income
Waterworks and Sewer System Revenue Bonds Outstanding, February 28, 1978
Interest and Sinking Fund. February 28, 1978
Reserve Fund, February 28, 1978
Contingency Reserve Fund, February 28, 1978
Repair and Replacement Fund, February 28, 1978
Surplus Revenue Fund, February 28, 1978
12
1973
$13,255,112
232,991
794,809
1.319,889
478,244
516.081.045
5 8,859,000
135,954
5 8.994,954
5 7,086,091
44.06%
S 744,806
2.'. 1 Times
5 768,254
2.04 Times
510,526.000
5 447,2_83
5 778,000
$
100,474
5 50,000
$ 1.111.686
Purpose
Waterworks and Sewer
AUTHORIZED BUT UNISSUED REVENUE BONDS
Amount
Date Amount Heretofore Unissued
Authorized Authorized Issued Balance
December 23, 1974 $4,000,000 $2,500,000 $1,500,000
MONTHLY WATER RATE*
Effective January 1, 1972
Rate Per 1,000 Gallons
Inside City Outside City Growth Area
First 10,000 gallons or portion thereof $0.80 $1.00 $1.13
Next 290,000 gallons 0.65 0.80 1.13
Next 4,700,000 gallons 0.53 0.65 1.13
All Over 5,000,000 gallons 0.44 0.55 1.13
*In addition to the above rates a 3% State Sales Tax and a monthly meter charge based upon the size of
the meter is added as follows: Inside City Limits — $1.50 to $50.00; Outside City Limits — $1.90 to $60.00;
Growth Area — $6.00 to $65.00.
MONTHLY SEWER RATE*
Effective January 1, 1972
Rate
Per 1,000
Gallons
Inside City
First 10,000 gallons of water consumed $1.05
Next 290,000 gallons of water consumed 0.65
All Over 300,000 gallons of water consumed 0.40
Add monthly sewer service charge at $0.80 per bill
*For residential customers a sewer average will be computed based on water consumption for the
months of December, January and February of each year. The average will be computed by using the
schedule of sewer rates shown above.
13
WATERWORKS SYSTEM
Description of Present System
Fayetteville is a city of 34,034 residents covering 24,396.4 acres. There are presently 12,363 water
customers and 9,533 sewer customers. The City of Fayetteville owns and operates, through twenty year
contracts, the water systems for two sister cities — Farmington and Greenland, Arkansas. Fayetteville also
sells bulk water to a third city — Elkins, Arkansas. The water system consists of 240 miles of 21/4 inch
through 36 inch water mains, 180 miles of 6 inch through 30 inch sewer mains, and 9 lift stations.
Present Water Supply
The water supply for the City is provided by the Beaver Water District, which was formed by the Cities
of Fayetteville, Springdale, Rogers and Bentonville. The District's source of water is Beaver Lake with a
capacity of 1.651,900 acre feet. The District has guaranteed right to 120 million gallons per day, which is
projected to be sufficient to meet the cities' needs through the year 2000. The District operates a water
treatment plant at Lowell, Arkansas, which has a present nominal capacity of 25 million gallons per day. In
addition to the water supplied by the District, Fayetteville has its own water supply lake and treatment plant
with a capacity of 6 million gallons per day for standby purposes. Northwest Arkansas is also a water rich
area and added capacity may be obtained.
Water Storage
Water storage presently consists of 18.25 million gallons, located to serve all geographic areas of the
City.
Pumping Plants
Pumping facilities at the Lowell Treatment Plant can handle up to 16.6 million gallons per day with
expansion capability to 24 million gallons per day. In addition, there are three elevated booster pressure
systems to serve higher elevations. Pumping facilities for raw water are at Lake Sequoyah and West Fork.
Distribution System
Large transmission mains transport water to all parts of the City at an average pressure of
approximately 100 psi. Minimum fire main size permitted is six inch when looped or eight inch for dead end
lines. Fire hydrants are adequately spaced, system is gridded and interconnected for maximum reliability.
Industrial sites are served by Targe mains with ample capacity for future developments.
Past Consumption of Water
Year
Average Maximum
Daily Use Day's Use
in Gallons in Gallons
Total
1965 4,338,216 7,598,000 1,583,444,000
1966 4,636,920 8,386.000 1,692.476,000
1967 4,816,465 7,894.000 1,758.010,000
1968 5,103,000 8,240,000 1,842.952,000
1969 5,455,000 8,048,000 1,991.436,000
1970 5,758,000 9,056,000 2,102,013,000
1971 5,647,717 8,970,000 2,632,425,000
1972 5,600,000 8,900,000 1,881,973,000
1973 5,900,000 8,100,000 2,044,795,000
1974 6,000,000 9,400,000 2,196,590,000
1975 5,300,000 7,600,000 1,941,200,000
1976 6,000,000 9,600,000 2,181,300,000
1977 6,700,000 10,400,000 2,442,700,000
14
TEN LARGEST WATER USERS
1977 CONSUMPTION
(Gallons)
User
1. Campbell Soup Company
2. University of Arkansas
3. Elkhart Products Corporation
4. Shakespeare of Arkansas
5. The Standard Register Company
6. City of Elkins
7. Fayetteville Public Schools
8. Bear Brand Hosiery Company
9. Coca-Cola Bottling Company
10. R & P Electroplating
Total
SEWER SYSTEM
Per Month
Average
41,994,000
17,765,700
2,016,600
1,978,900
1,364,200
1,221,900
897,300
856,000
661,300
549,200
69,305,100
1977
Total
503,930,000
213,188,300
24,199,100
23,746,600
16,370,700
14,662,900
10,766,700
10,272,400
7,935,600
6,590,500
831,662.800
% of
Total 1977
Consumption
20.63%
8.73%
0.99%
0.97%
0.67%
0.60%
0.44%
0.42%
0.33%
0.27%
34.05%
Description of the System
The City owns and operates a secondary sewage treatment plant located on the west fork of the White
River approximately two miles east of Fayetteville. Treatment consists of primary and secondary
sedimentation, grease and grit removal, sludge burial, and activated sludge units. The present capacity of the
plant is ten million gallons per day, which is adequate for a population of approximately 50,000. Studies are
now underway to determine the most economically feasible method of expanding the treatment capacity in
order to meet future needs.
Sewage Flows and Projections
Average Daily Sewage Flow Estimated Daily Sewage flow
1972
1973
1974
1975
1976
1977
5,863,000 gallons
7,774,000 gallons
7,220,000 gallons
6,600,000 gallons
5,200,000 gallons
5,800,000 gallons
15
1978
1979
1980
1981
1982
1983
9,800,000 gallons
10,700,000 gallons
11,800,000 gallons
13,000,000 gallons
14,200,000 gallons
15,100,000 gallons
THE CITY
General
Fayetteville, with a 1976 population of 34,034, is settled in the Ozark Mountains in Northwest
Arkansas. Fayetteville is that area's largest city and principal trade center. The City is the service center for
approximately 150,000 people. Industry in the Fayetteville area employs over 5,000 people with production
in poultry products, printed forms, fuses, copper tubing connections, hosiery, electronic organs, fishing rods
and reels and golf clubs.
Fayetteville is the County Seat of Washington County. Approximately 53 percent of Washington
County is covered with timber. About four percent of this coverage is in National Forest. The County is very
much a poultry producing county with production in poultry having reached $80.000,000 in 1972,
Washington County had retail sales totaling $267,278,000 in 1976, while the Fayetteville, Springdale SMSA
had retail sales of over $444,600,000.
City Government
Fayetteville is controlled by a manager -director form of government. The seven members of the Board
of Directors are elected at large to four year, overlapping terms. The Board of Directors selects one member
to serve as Mayor and one as Assistant Mayor. The Board also is responsible for selecting a City Manager
who is the acknowledged administrative officer of the City.
Education
One of the trademarks of Fayetteville is that it houses the main campus for the University of Arkansas.
The 1976-77 statistics show the Fayetteville campus had an enrollment of over 13,000 students. The major
divisions of the University in Fayetteville are the Division of Agriculture, the College of Arts and Sciences,
including more than 40 departments, the College of Business Administration, the College of Education, the
College of Engineering, the Division of General Extension, the Graduate School, and the School of Law. The
libraries offering valuable research support to these divisions number over 700,000 volumes. This fine
University has truly been of service to many people through the years, and it is proud to include a new list of
graduates each year to its Senior Walk, on the grounds of Fayetteville, as it has done every year for the past
81 years. The University is a major asset to the City of Fayetteville.
The public school system of Fayetteville has an average daily attendance of more than 5,500 students.
There are 304 teachers employed by the District. The State Department of Education has given the
elementary schools an "A" rating. The high school and junior high schools have received full accreditation
from the North Central Association of Colleges and Secondary Schools. The school system has been an
innovator for the State of Arkansas. The Fayetteville system was the first in the state to establish a General
Adult Education Program in Arkansas and to construct the first Open -Space school with interior walls or
partitions. The high school was the first one in the State to utilize modular scheduling, team teaching, large
and small group instruction, independent study and individualized instruction. Fayetteville also has a
Technical High School serving anyone who wishes to receive the training. This school offers 140 training
courses in conjunction with Fayetteville High School. The technical training includes such courses as building
trades, auto mechanics, drafting, dental assisting, body and fender repair, cosmetology, and printing. Day
classes are mainly for high school students and adults attend evening classes.
Population
The City of Fayetteville had a 51.6% increase in population from 1960 to 1970. The City had a
population of 20,274 in 1960 and 30,729 in 1970. 1976 population was 34,034. Washington County also
experienced an increase in population, with 55,800 in 1960 and 77,370 in 1970; a 39% increase. The County
had an estimated 1976 population of 90,700.
16
•
Financial Institutions
The First National Bank, Mcllroy Bank, Northwest National Bank, First Federal Savings and Loan
Association and Fayetteville Savings and Loan Association presently serve the City.
Year
1966
1967
1968
1969
1970
1971
1972
1973
1974
1975
1976
Industry and Business
Company
Armstrong Bros. Tool Company
Ayers Furniture Products
Baldwin Piano and Organ Company
Bear Brand Hosiery Company
Campbell Soup Company
College Club Dairy
Farm Service Cooperative
Gould, Inc.
Kearny Company
Levi Strauss and Company
McClinton -Anchor Company
Mexican Original Products, Inc.
Northwest Arkansas Times
Shakespeare of Arkansas
Shipley Baking Company
The Standard Register Company
Combined
Bank Deposits
$ 52,065,829
59,346,298
60,672,099
67,871,118
71,968,082
78,580,000
92,481,748
113,780,149
126,832,162
140,484,593
160,971,735
Business
Combined Savings
and Loan Deposits
$23,006,765
24,852,080
26,206,482
29,713,338
34,134,196
39,038,926
50,957,277
60,374,285
68,362,037
79,847,449
94,448,096
Industrial Hand Tools
Wood Furniture
Electronic Musical Instruments
Hosiery
Frozen Processed Foods
Milk and Dairy Products
Feeds, Seeds, Fertilizers, etc.
Copper Fittings and Air Conditioning Parts
Electrical Tools and Parts
Pants, Jackets, Vests
Limestone Products, Asphalt
Processed Mexican Food
Newspaper
Sporting Goods
Bread Products
Business Forms
17
Number of
Employees
50-99
50-99
500-999
200-299
1,000-2,499
50-99
100-199
300-499
200-299
300-499
200-299
200-299
50-99
200-299
50-99
300-499
Building Permits and Utility Connections
Year
1966
1967
1968
1969
1970
1971
1972
1973
1974
1975
1976
Building
Permits
$ 3,489,807
3,887,073
4,424,134
3,703,722
6,321.400
11,377.440
11,291,782
8,600,179
6,884,021
8,689,1 13
17,118,103
Sales Management Estimates of Retail Sales
Washington County
Year I Fayetteville)
1967
1968
1969
1970
1971
1972
1973
1974
1975
1976
$132,450,000
144,1 19,000
158,280,000
171,581,000
180,494,000
193,915,000
239,862,000
239,559,000
249.887,000
267,278,000
Gas
Meters
7,747
8,417
8,612
8,718
8,843
8,992
9,212
9,211
9,341
9.494
9.802
Benton County
(Springdale)
$ 61,609,000
68,378,000
70,211,000
75,281,000
80,960,000
86,762,000
107,449,000
136,879,000
154,303,000
177,323,000
Electric
Meters
8,335
8,617
9,226
9,325
9,599
9,917
10,501
11,254
12,453
12,709
13,020
Telephones
16,370
18,734
20,071
21,624
23,083
24,385
25,725
27,443
28,303
29.986
30.924
Total
Retail Sales
$194,059,000
212.497,000
228,491,000
246,862,000
261,454,000
280,677,000
347,361,000
376,438,000
404,190,000
444,601.000
Transportation
Air transportation is furnished by Frontier Airlines and Skyways Scheduled Systems at Drake Field
Airport. There is one paved, north/south runway, 100 feet by 6,000 feet. In 1976 38,918 passengers enplaned
and 835,635 pounds of cargo came through the airport.
Jefferson Lines (Crown Coach), Arkomo and Continental Trailways Bus Lines, with regular scheduled
daily runs. provide connections to all major points in the United States. Rail transportation is furnished by
the St. Louis -San Francisco Railroad, servicing the Midwest and Southwest. Seven common carrier truck
lines provide service.
Recreation
Fayetteville is circled by lakes on the White River. Beaver Darn and Reservoir, located ten miles from
Fayetteville, provides fishing, skiing and other water -related sports. The University of Arkansas provides
various sporting events, which attract many people to the area. The State of Arkansas has many areas which
permit the hunting of deer, quail, dove and other wildlife.
18