HomeMy WebLinkAbout42-79 RESOLUTIONRESOLUTION NO. 1/22-91
A RESOLUTION APPROVING AN OFFICIAL STATEMENT FOR THE ISSUANCE
OF 1979 AIRPORT REVENUE BONDS IN THE PRINCIPAL AMOUNT OF $600,000.00.
BE IT RESOLVED BY THE BOARD OF DIRECTORS OF THE CITY OF
FAYETTEVILLE, ARKANSAS:
That the Board of Directors hereby approves the official
statement marked "Exhibit A" attached hereto and made a part hereof,
and any adenda, supplement, or amendment thereto, and authorizes
its use in the reoffering of 1979 Airport Revenue Bonds in the
principal amount of $600,000.00.
PASSED AND APPROVED this /t5 -4 -day of 7,7(91 , 1979.
ATTEST:
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CIT IYLERK
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APPROVED:
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EXHIBIT A
OFFICIAL STATEMENT
Dated April 12, 1979
INTEREST EXEMPT, IN THE OPINION OF BOND COUNSEL, FROM PRESENT FEDERAL INCOME
TAXES UNDER EXISTING STATUTES, REGULATIONS, RULINGS AND COURT DECISIONS
$600,000
CITY OF FAYETTEVILLE, ARKANSAS
(Washington County)
7.00%-6.60%-6.70%-6.80%-6.90%-7.00%-7.10%-7.20%-7.25%
AIRPORT REVENUE BONDS, SERIES 1979
:Dated: May 1, 1979 Denomination: $5,000
Principal and semi-annuaLinterest (May 1 and November 1) payable at
Worthen Bank & Trust Company, N. A., Little Rock, Arkansas.
First interest coupon due November 1, 1979.
Bonds registrable as to both principal and interest.
These Bonds are special obligations of the City of Fayetteville and are payable solely from and
secured.* a pledge of the.Gross Revenues from the operation of the City's Airport. There is no
other sourbe of payment pledged to this Bond. See Security for Payment. The City of Fayette-
ville ha's'never defaulted. .
MATURITY SCHEDULE
• Amount Maturity Rate Yield Amount Maturity Rate Yield
$25,000 11-1-1982 7.00% ng $40,000 11-1-1990* 6.80% 6.80%
252opo 11-1-1983- 7.00% 6.25% 45,000 11-1-1991* 6.90% 6.90%
30,00 11-1-1984 7.00% 6.25% 45,000 11-1-1992* 7.00% 7.00%
30,000 11-1-1985 7.00% 6.30% 50,000 11-1-1993* 7.00% 7.00%
35,000 11-1-1986 7.00% 6.40% 50,000 11-1-1994* 7.10% 7.10%
• 35,000 11-1-1987 7.00% 6.50%, 55,000 11-1-1995* 7.20% 7.20%
-35,000 11-1-1988 6.60% 6.60% 60,000 11-1-1996* 7.25% 7.25%
40,000 11-1-1989 6.70% 6.70%
* The City reserves the right, at its option: to redeem Bonds maturing November 1, 1990
- through November 1,1996, both inclusive, in whole, -or any part thereof, on November 1, 1989, or
any interest -payment date thereafter, at'the par value thereof plus accrued interest to the
date fixed for redemption. Yields computed to maturity.
. The Airport Revenue Bonds are offered for delivery when, as and if issued and subject to the
unqualified approving opinion of Messrs. Friday, Eldredge & Clark, Bond Counsel, Lttle Rock,
Arkansas, whose approving opinion will be printed on the Bonds. It is expected that the Bonds
will be delivered on or about May 15, 1979.
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 ex-
pressions 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
Official Statement:
Description of the Bonds 1
Board of Directors 3
Appointed Officials 3
Consultants and Advisors 3
Security for Payment 4
Drake Field Operations 4
Statement of Operations - Drake Field 4
Proceeds 4
Debt Service Requirements 5
Valuation and Debt Information 5
Non -Funded Debt
5
Tax Rate and Funded Debt Limitations 6
Tax Adequacy
6
Valuation and Funded Debt History 6
Taxable Assessed Valuations by Category 6
Estimated Overlapping Funded Debt Payable From Ad Valorem Taxes 7
Tax Data
7
Municipal Sales Tax 8
Ten Largest Taxpayers 8
Authorized But Unissued General Obligation Bonds 8
Pension Funds
8/9
Statement of Revenues, Expenditures and Fund Balance 9
Waterworks and Sewer System Condensed Statement of Operations 10
Value of the System
10
City's Equity in System 10
Coverage and Fund Balances 11
Authorized But Unissued Revenue Bonds 11
Monthly Water Rate
11
Monthly Sewer Rate
11
Waterworks System 11/12
Ten Largest Water Users 12
Sewer System
13
General Information Regarding the City and Its Economy 14/16
Ratings
17
Tax Exemption
17
Registration and Qualification of Bonds for Sale 17
Legal Investments in Arkansas 17
Legal Opinions and No -Litigation Certificate 17
Authenticity of Financial Information 17
Certification of the Official Statement 18
General Fund Financial Statements Appendix
The cover page hereof, this page, the appendix included herein and any addenda, supplement or
amendment hereto, are part of the Official Statement.
1
cc.
•
Name
David Malone
Mayor
John Todd
Vice Mayor
Ernest Lancaster
Director
Paul Noland
Director
Richard Osborne
Director
Philip Colwell
Director
Ann Henry
Director
BOARD OF DIRECTORS
•
Term Expires
December 31, 1980
December 31, 1982
December 31,
1982
December 31, 1982
December 31, 1982
December 31, 1980
December 31, 1980
Name
Donald L. Grimes
Patrick J. Tobin
Angela R. Medlock
- Don Bunn
Dale Clark
James N. McCord
Certified -Public Accountants
Consulting Engineers
Architects
Length of
Service
2 Years
4 Years
8 Years
6 Years
4 Months Attorney
2 Years
2 Years
Occupation
Assistant Dean, Law School
University of Arkansas
Professor Business Management
University of Arkansas
Electric Operations Manager
Professor, Animal Science
University of Arkansas
APPOINTED OFFICIALS
Pharmacist
Civic Leader and Homemaker
Position
City Manager
City Controller
City.Clerk
City Engineer'.
Parks and Recreation Director
City Attorney
CONSULTANTS AND ADVISORS
Length of
Service
7 Years
9 Years
1 Year
1 Year
10 Years
5 Years
Rate Consultants
Bond Counsel
Gaddy & Co.
Fayetteville, Arkansas
McGoodwin, Williams & Yates
Fayetteville, Arkansas
McClellan Consulting Engineers
Fayetteville, Arkansas
Paul Young & Associates
Fayetteville, Arkansas
Warren D. Segraves & Associates
Fayetteville, Arkansas
• FINANCIAL ADVISORS
First Southwest Company
Mercantile Bank Building
Dallas, Texas
- 3
Black and Veatch
Dallas, Texas
Friday, Eldredge & Clark
Little Rock, Arkansas
SECURITY FOR PAYMENT
These Series 1979 Bonds will be special obligations of the City of Fayetteville, secured by a
pledge of the gross revenues from the operation of the City's Airport, Drake Field. Gross
revenues consist primarily of fees and charges for goods and services paid by users of the
Airport, including airlines, concessionaires, passengers, fixed base operators, cargo and
freight forwarders and others. The City will covenant in the Bond Ordinance authorizing the
issuance of the Series 1979 Bonds to maintain rates for the services of the Airport sufficient
at all times to provide for the payment of the principal and interest on the Series 1979 Bonds
as they become due and payable, and to provide for the payment of the reasonable expenses of
operation.
DRAKE FIELD OPERATIONS
Two scheduled air carriers operate from
Frontier Airlines flies Conair 580's and
Metroliners, four Beechcraft 99's and one
charter. Recently Skyways has committed
service the continued expansion of their
chasing one 30 -seat plane. Both airlines
Drake Field with a total of thirty flights daily.
Scheduled Skyways, Inc. operates three Swearingin
Cessna 310C. All of Skyways planes are available for
to purchase by 1981 seven additional Metroliners to
routes and is investigating the possibility of pur-
offer passenger and cargo facilities.
Although the City is in negotiation with the airlines for space in the new terminal facilities,
under current contracts each airline and the four rent -car companies pay rent to the City based
on the square footage occupied in'the terminal. In addition, each airline pays a landing fee
per one thousand pounds of gross weight. The landing fees and terminal rental constitute the
primary source of income for the City, however, each airline pays other miscellaneous charges
for the use of the facilities. Based upon information supplied to the City by the airlines, a
15% increase in passenger boardings is anticipated for 1979.
Revenues
Expenses
Net Income**
* *
STATEMENT OF OPERATIONS
DRAKE FIELD
12-31-78* 12-31-77 12-31-76
$135,755 $130,742 $116,185
56,381 40,469 28 196
$ 79 3/4 $ 90 273 $ 8/ 989
12-31-75
nterl4
22,258
$ 92 386
12-31-74
$ 69,217
17,982
$ 51,235
Unaudited.
Net of depreciation, capital expenditures and debt service.
Airport Revenue Bonds Outstanding, 4-1-79 (This Issue Only)
Average Annual Principal and Interest Requirements, 1979-1996
Coverage of Average Requirements by 12-31-78 Net Income
Maximum Principal and Interest Requirements, 1986
Coverage of Maximum Requirements by 12-31-78 Net Income
PROCEEDS
Proceeds of this issue, along with grant proceeds received from State and
will be used for the expansion of terminal facilities, concrete aprons,
facilities and other related improvements for Drake Field.
4
$ 600,000
$ 60,400
1.31 Times
$ 69,300
1.15 Times
Federal agencies,
taxiways, parking
•
•
•
Wm!.
Fiscal
Year The $600,000 Bonds "
Ending Grand Total
12-31 Principal Interest Requirements
• 1979 $ 21,000 $ 21,000
1980 42,000 42,000
1981 42,000 42,000
1982 $ 25,000 42,000 67,000
1983 25,000 40,250 65,250
1984 30,000 38,500 68,500
1985 30,000 36,400 66,400
1986 35,000 34,300 , 69,308
1987 35,000 31,850 66,85b
1988 35,000 29,400 64,480, c.,..,..,
1989 40,000 26,950 66,950 .„
1990 40,000 24,150 64,150:.
1991 45,000 21,350 66,350,,, -15,
4
1992 45,000 18,200 63,200 - -
_
,4-1DEBT SERVICE REQUIREMENTS
1993 50,000 15,050 65,050,
1994 50,000 11,550 61;550
1995 55,000 8,050 63,050
1996 60,000 4,200 64,200 .
$600,000 $487.200 $1,087,200
Note: Interest on the Bonds has been calculated at the rate of 7% for purposes of illustra-
_ tion.
VALUATION AND DEBT INFORMATION'
1979Jaxable Assessed Valuation (20%.of.Actual)..(1)
City Funded Debt Payable From Ad Valorem Taxes: -
General Obligation Improvement Bonds -(as of 4-1-79)
$61,739,215
$ 800,000
Ratio Total Funded Debt to 'Taxable kiesessed Valuation 1.30%
1970 U. S. Census -Population - 30,729
1977 Estimated Population- 37,000*
Per Capita Taxable Assessed Valuation - $1,668.63
Per Capita Total Debt - $21.62
Area - 3-9.3 Square Miles
* Source: Bureau of Business Research, University of Arkansas.
Note 1: The City does not grant any -exemptions.
Note 2: The above statement of indebtedness does not include $10,263 000 outstanding Water-
works and Sewer Revenue Bonds, nor $600,000 Airport Revenue Bonds now.being offered for sale,
as these bonds are payable solely from income of the respective operations.
NON -FUNDED DEBT
The City has no unfunded debt outstanding or )ease -purchase agreements in effect as of April 1,
1979.
-5
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.
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 the $800,000 General Obligation Improvement
Bonds currently outstanding is strictly limited to two mills within this available five mill
limitation.
Funded Debt Limitation
Amemdment 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 1979 Taxable Assessed Valuation
All General Obligation Bonds ...
1979 Principal and Interest Requirements
2 Mill Tax Rate @ 95% Collection Produces
Average Annual Principal and Interest Requirements, 1981-92
2 Mill Tax Rate @ 95% Collection Produces
Tax
Year
Ended
12-31
1973
1974
1975
1976
1977
1978
1979
Fiscal
Year
Ended
12-31
1970
1971
1972
1973
1974
1975
1976
1977
1978
1979
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
61,739,215
* Estimated.
Funded Debt
Outstanding
at End
of Year
$777,000
654,000
620,000
479,000
445,000
409,000
800,000
800,000*
Ratio Funded
Debt to
Taxable
Assessed
Valuation
2.28%
1.76%
1.53%
1.08%
. 96%
. 84%
. 00%
. 00%
1.33%
1.30%
TAXABLE ASSESSED VALUATIONS BY CATEGORY
Personal Property
% of
Total
Amount Value
$10,388,170 73716%
10,344,345 22.29%
11,186,395 22.93%
12,568,765 24.14%
14,019,530 25.30%
15,402,505 25.68%
15,692,885 25.42%
Real Proper?
Amount
$30,726,530
32,522,215
33,785,305
35,349,425
36,894,825
39,293,965
41,046,235
of
Total
Value
69.10%
70.07%
69.25%
67.90%
66.59%
65.51%
66.48%
Utility
Property
% of
Total
Value
9.54%
7.64%
7.82%
7.96%
8.11%
8.81%
8.10%
Amount
$3,351,415
3,546,575
3,816,280
4,139,265
4,493,625
5,284,810
5,000,095
$ 60,000
$117,305
$ 88,625
$117,305
Total
Assessed
Valuation
$44,466,115
46,413,135
48,787,980
52,057,455
55,407,980
59,981,280
61,739,215
•
ESTIMATED OVERLAPRING-FUNDED DEBT-PAYABLE:FROM AD VALOREM TAXES
- - (As of 4-1;79) .1-f
Taxing Jurisdiction .
City of Fayetteville
Fayetteville School District No. 1
Washington County
Springdale School District No. 50
Total Overlapping Funded Debt
' Total
Funded Debt
$ 800,000
2,360,000
4,654,000
Ratio Overlapping Funded -Debt to Taxable Assessed Valuation
Estimated
Applicable
100.00%
93.45%
39.11%
3.52%
Per Capita Overlapping Funded•Debt - $85.66
TAX DATA
Fiscal Interest Fire and
Year and -Police
Ended Total General Sinking Pension
12-31 Tax Rate Fund Fund Fund
—1370- 16 mills 10 mills 4 mills 2 mills
1971 16 mills 10 mills 4 mills 2 mills
1972 16 mills 10 mills 4 mills 2 mills
1973 16 mills 10 mills 4 mills 2 mills
.1974 16 mills 10 mills 4 mills 2 mills
1975. 11 mills 5 mills 4 mills 2 mills
1976 7 mills 5 mills 0 mills 2 mills
1977 7 mills 5 mills 0 mills 2 mills
_ .1978 7 mills 5 mills 0 mills 2.mills
1979 7 mills 5 mills 0 mills 2 mills
_ * Includes delinquent tax colledions-from.prior„years.
Assessment, Levy and Collection of Arkansas Property Taxes
Under the Arkansas Constitution, as ame-nded, all property is subject to taxation according to
its value, except for the following exemprcatepries: (1) 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 personal property is exempt,from .taxation under present law. Historically, intan-
gible personal property has not been subject to ad valorem taxation in Arkansas.
Total Total
Tax Levy Collections*
$545,89?$541,2/5
595,891 608,447
648,101 642,920
711,458 656,942
742,610 _ 736,409
536,668 484,347
364,402 364,672
387,856 358,295
419,869 567,459
433,175 In Process of
Over
Funded Debt
$• 800,000
2,205,420
-0-
163,821
$3,169,241
5.13%
% Total
Collections
99.15%
102.11%
99.20%
92.34%
99.17%
90.25%
100.07%
92.38%
135.15%
Collection.
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:
•i -
Interest - No charges for interest are made., .
Penalties - A total of 10% of the delinquent taxis assessed in penhlties 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.
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
Year
Ended
12-31
1970
1971
1972
1973
1974
1975
1976
1977
* Increased State allotment to
Total
Collected
$129,480
141,105
163,134
192,600
333,760*
347,389
350,758
431,315
% of
Ad Valorem
Tax Levy
23.72%
23.68%
25.17%
27.07%
44.94%
64.73%
96.26%
89.92%
municipal turnback fund.
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
AUTHORIZED BUT
Equivalent of
Ad Valorem
Tax Rate
3.80 mills
3.79 mills
4.03 mills
4.33 mills
7.19 mills
7.12 mills
6.74 mills
7.79 mills
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
1978
Taxable
Assessed
Valuation
$ 2,861,260
2,198,630
1,127,105
1,044,140
1,024,557
908,050
537,040
306,850
274,310
266,730
$10,548,672
UNISSUED GENERAL OBLIGATION BONDS
The City has no authorized but unissued General Obligation Bonds.
PENSION FUNDS
% of Total
Taxable
Assessed
Valuation
4.77%
3.67%
1.88%
1.74%
1.71%
1.51%
0.90%
0.51%
0.46%
0.44%
17.59%
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 retire-
ment the employee has several benefit options, all of which are funded with reserves adminis-
tered 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.
I
Firemen's Retirement Salary and 9.ension Fund
'
1•14
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 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 eligibil-
ity for retirement, he.receives back all contributions made to the fund by him. The Cjty,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 deficien-
cies be found, appropriate legislation by the State of Arkansas would be required, either to
provide for additional funding or decreased benefits.
Policemen's Retirement -SalpirY 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 prjor to this eligiblity for
retirement, he receives back .all contributions made to the fund by him. The City of Fayette-
ville 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
12-31-77 12-31-76
$ 920,680 $ 702,024
Fiscal Year Ended
Fund Balance - Beginning of Year
Revenues:
General Property Taxes
• Franchise Taxes
Licenses and Permits
Fines and Penalties
• Use of Money and Property
Other Revenues
Total Revenues
Expenditures:
General Government
Public Safety
Recreation
Miscellaneous
Total Expenditures
Excess of Revenues over
Expenditures
Fund Balance - Year End
$ 271,563
504,057
226,397
238,854
210,621
546,208
$1,997,700
$ 416,700
1,061;684
120,612
183,521
$1 782 517
$ 215,183
$1,135,863
$ 251,057
339,133
175,721
184,229
189,929
- . 481,591
$1,621,660
$ 296,668
849,442
112,220
144,674
$1,403,004
12-31-75
$ 624,634
$ 236,083
233,400
65,353
198,227
182,548
698,952
$1,614,563
$ 287,972
848,941
114,088
286,172
$1,537,173
12-31-74
$ 590,433*
$ 415,342
206,213
60,275
196,192
136,857
661,519
$1,676,398
$ 280,825
815,091
355,602
190,679
$1,642,197
$• 218,656 $ 77,390 $ 34,201
$ 920,680 $ 702,024 $ 624,634
* Difference in fund balance is due to an adjusting entry made by the auditor.
12-31-73
$ 522,650
$ 378,931
193.,131-
59,712'
213,098
111,556
. 290,099
$1,246,527'
$ 211,600
• 752,898
101,884
114,925
$1,181,307
$ 65,220-
$ 587 870
WATERWORKS AND SEWER SYSTEM CONDENSED
STATEMENT OF OPERATIONS
Fiscal Year Ended July 31
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
Sewer Customers
Fiscal Year Ended July 31
Waterworks System
Sewer System
Total Value
Reserve for Depreciation:
Waterworks System
Sewer System
Total Depreciation
Net System Value
Fiscal Year Ended July 31
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
% of Equity in System
1978
$1,604,377
1,198,383
52,583
255,960
$3,111,303
$ 535,081
130,495
155,446
359,237
7,589
264,739
188,255
$1,640,842
1977
1976
1975
1974
51,529,248 $1,337,662 51,283,382 $1,203,787
1,131,156 1,033,603 979,319 975,139
74,420 79,861 88,529 70,886
250,566 257,390 246,043 143,761
$2,985,390 52,708,516 52,597,273 52,293,573
$ 414,626
137,114
125,664
309,089
7,549
238,839
183,868
$1,416,749
$ 304,987
72,681
155,187
257,331
7,076
222,435
173,254
$1,192,951
S 263,954
87,730
126,378
238,713
6,914
190,160
167,439
$1,081,288
$ 333,289
91,286
109,850
190,284
5,475
191,212
195,480
$1,116,876
51,470,461 $1,568,641 51,515,565 81,515,985 51,276,697
13,061
10,320
1978
12,363
9,533
VALUE OF THE SYSTEM
$17,197,734
11,263,239
$28,460,973
$ 4,276,729
2,781,594
$ 7,058,323
$21,402,650
1977
$13,610,156
8,426,982
$22,037,138
$ 3,958,119
2,519,284
$ 6,477,403
$15,559,735
11,710
9,161
1976
$12,782,345
8,069,305
$20,851,650
$ 3,668,398
2,275,379
$ 5,943,777
$14,907,873
CITY'S EQUITY IN SYSTEM
1978
$21,402,650
1,091,046
841,094
2,928,157
705,107
$26,968,054
$10,318,000
697,134
$11,015,134
$15,952,920
59.15%
1977
$15,559,735
5,193,915
1,526,624
2,813,571
668,262
$25,762,107
$10,566,000
766,863
$11,332,863
814,429,244
56.01%
-10-
1976
814,907,873
4,536,038
1,455,969
3,066,092
587,938
$24,553,910
$10,801,000
908,907
$11,709,907
$12,844,003
52.31%
11,375
8,808
1975
$12,045,137
7,947,475
$19,992,612
$ 3,399,792
2,035,644
$ 5,435,436
$14,557,176
1975
$14,557,176
1,248,497
1,140,809
3,998,454
579,546
$21,524,482
$10,994,000
830,531
$11,824,824
$ 9,699,951
45.06%
11,172
8,628
1974
811,262,174
7,751,731
TW:UnTOS
$ 3,136,492
1,806,907
$ 4,943,399
814,070,506
1974
$14,070,506
376,698
1,013,998
1,505,903
603,061
$17,570,166
$ 8,680,000
258,824
$ 8,938,824
$ 8,631,342
49.12%
4m
•
•
COVERAGE AND FUND BALANCES
Average Annual Principal and Interest Requirements, 1979-2002
Coverage of Average Requirements by 7-31-78 Net Income
Maximum Principal and Interest Requirements, 1980
Coverage of Maximum Requirements by 7-31-78 Net Income
Waterworks and Sewer System Revenue Bonds Outstanding, 4-1-79
Interest and Sinking Fund, 4-1-79
Reserve Fund, 4-1-79
Contingency Reserve Fund, 471-79
Repair and Replacement Fund, 4-1-79
Surplus Revenue Fund, 4-1-79
.AUTHORIZED BUT UNISSUED
REVENUE BONDS
Date Amount
Purpose Authorized Authorized
Waterworks and Sewer 12-23-74 $4,000,000
First 10,000
Next 290,000
Next 4,700,000
All Over 5,000,000
MONTHLY WATER RATE*
Effective 1-1-72
gallons or portion
gallons
gallons
gallons
thereof
$ 743 840
1.98 Times
$ 768 354
1:91 Times
$10,263000
$ 447,000
$ 778;000
$ 100000
$ 50;000
$ 893,300
AmounC
Heretcifoi'dUnissued
Issued Balance
82,500;000 $1,500,000.
Rate Per 1,000 Gallons
Inside Outside Growth
City.11..ty Area
$ 0.80 o $1.13
0.65 0.80 1.13
0.53 0.65 1.13
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 1-1-72
First 10,000 gallons of water consumed
Next 290,000 gallons of water consumed
All Over 300,000 gallons of water consumed
Add monthly sewer service charge at $0.80 per bill_
Rate
Per 1,000
Gallons
Inside City
$1.05
0.65
0.40
* 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 then be applied to
the schedule of sewer rates shown above to derive each customer's monthly sewer charge.
•
, WATERWORKS SYSTEM
Description of Present System ... Fayetteville is a city of 37,000 residents covering 24,396.4
acres. There are presently 13,061 water customers and 10,320 sewer customers. The city of
Fayetteville owns and operates, through twehty year contracts, the water systems for two sisEer
cities - Farmington and Greenland, Arkansas. Fayetteville also sells bulk .water to a third
city - Elkins, Arkansas. The water system consists of 240,mi1es of 2 1/4 inch through 36 inch
water mains, 180 miles of 6 inch through 30 inch sewer mains, and 9 lift stations.
- 11 -
Present Water Supply ... The water supply for the City is provided by the Beaver Water Dis-
trict, 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 stardby 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 facili-
ties 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 perm'tted 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 large mains with
ample capacity for future developments.
Past Consumption of Water ...
Average Maximum
Daily Use Day's Use
Year in Gallons in Gallons
1969 5,455,000 8,048,000
1970 5,758,000 9,056,000
1971 5,647,717 8,970,000
1972 5,600,000 8,900,000
1973 5,900,000 8,100,000
1974 6,000,000 9,400,000
1975 5,300,000 7,600,000
1976 6,000,000 9,600,000
1977 6,700,000 10,400,000
1978 7,100,000 12,900,000
Total
1,991,436,000
2,102,013,000
2,632,425,000
1,881,973,000
2,044,795,000
2,196,590,000
1,941,200,000
2,181,300,000
2,442,700,000
2,585,165,000
TEN LARGEST WATER USERS
1977 Consumption
(Gallons)
User
Campbell Soup Company
University of Arkansas
Elkhart Products Corporation
Shakespeare of Arkansas
The Standard Register Company
City of Elkins
Fayetteville Public Schools
Bear Brand Hosiery Company
Coca-Cola Bottling Company
R & P Electroplating
Total
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
-12-
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
20.61%
8.73%
0.99%
0.97%
0.67%
0.60%
0.44%
0.42%
0.33%
0.27%
(X%
Id
Meg
•
..'4.?""?•:41e"r"."/777:
SEWER SYSTEM.
-Description of the System The City owns and operates a secondary sewage treatment plant
:located on the west ork -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
7."
to meet future needs.
Sewage Flows and Projections ...
Averase
19
1974
1975
1976
1977
1978
Daily Sewage Flow
-7,774,000 gallons
7,220,000 gallons
6,600,00Q gallons
5,200,000 gallons
5,800,000 gallons
-8,280,000 gallons
Estimated Daily Sewage Flow
1979 10,700,000gallons
1980 11,800,000 gallpns,
1981 13,000,000 gallons
1982 14,200,000 gallonS
-1983 15,100,000,ga11ons
1984 16,000,000'gal1onS
,
,
- 13 -
GENERAL INFORMATION REGARDING THE CITY AND tTS ECONOMY
GENERAL
11 Fayetteville, with a 1977 population of 37,000, 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 Washing-
ton County is covered with timber. About four percent of this coverage is in National Forest.
Washington County had retail sales totaling S290,122,000 in 1978. The Fayetteville -Springdale
SMSA had retail sales of over S487,600,000 with Fayetteville accounting for $171,046,000 of the
total.
CITY GOVERNMENT
111 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 Agricul-
ture, 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 research
support to these divisions number over 700,000 volumes.
• 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
111 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. 1977 population was 37,000. 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.
- 14 -
•
1!"
FINANCIAL INSTITUTIONS
• The First National Bank, McIlroy Bank, Northwest National Bank, First Federal Savings
and Loan Association,and Fayetteville Savings and Loan Association presently serve the City.
Combined
Savings and
Year Loan Deposits
Tg§ $ 29,713,338
1970 34,134,196
1971 39,038,926
1972 50,957,277
1973 60,374,285
1974 68,362,037
1975 79,847,449
1976 94,448,096
1977 106,790,498
1978 123,449,993
INDUSTRY AND BUSINESS
Combined
Bank Deposits
$ 67,871,118
71,968,082
78,580,000
92,481,748
113,780,149
126,832,162
140,484,593
160,971,735
178,074,104
180,788,344
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
BUILDING PERMITS AND UTILITY CONNECTIONS
Year
1969
1970
1971
1972
1973
1974
1975
1976
1977
1978
Building
Permits
$ 3,703,722
6,321,400
11,377,440
11,291,782
8,600,179
6,884,021
8,689,113
17,118,103
20,344,574
19,218,988
Business
Industrial hand tools
Wood furniture
Electronic musical instruments
Hosiery
Frozen processed foods
Milk and dairy products
Feeds, seeds, fertilizers, etc.
Copper fittings and air condi-
tioning parts
Electrical tools and parts
Pants, jackets, vests
'Limestone products, asphalt
Fir -messed mexican food
Newspaper
Sporting goods
Bread products
Business forms
Gas
Meters
8,718
8,843
8,992
9,212
9,211
9,341
9,494
9,802
10,256
N.A.
-15-
Electric
Meters Tele.hones
. 9,325 21,624
9,599 23,083
9,917 24,385
10,501 25,725
11,254 27,443
12,453 28,303
12,709 29,986
13,020 30,924
13,700 33,095
15,718 34,567
Number of
Employees
SO- 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
SALES MANAGEMENT ESTIMATES OF RETAIL SALES
Year
1968
1969
1970
1971
1972
1973
1974
1975
1976
1977
Washing
(Faye
S144,
158,
171,
180,
193,
239,
239,
249,
267,
290,
ton County
tteville)
119,000
280,000
581,000
494,000
915,000
862,000
559,000
887,000
278,000
122,000
Benton County
(Springdale)
S 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
197,526,000
Total
Retail Sales
$212,497,000
228,491,000
246,862,000
261,454,000
280,677,000
347,311,000
376,438,000
404,190,000
444,601,000
487,648,000
TRANSPORTATION
II Air transportation is furnished by Frontier Airlines and Scheduled Skyways, Inc. 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.
II Jefferson Lines (Crown Coach), Arkomo and Continental Trailways Bus Lines, with regular
scheduled daily runs, provide connections to all major points in the Unged 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
miles from Fayetteville, provides fishing,
versity of Arkansas provides various sport
The State of Arkansas has many areas which
wildlife.
White River. Beaver Dam and Reservoir, located ten
skiing and other water -related sports. The Uni-
ing events, which attract many people to the area.
permit the hunting of deer, quail, dove and other
HOSPITALS
Fayetteville, the medical center of Northwest Arkansas, is served by three hospitals; the
City Hospital and Washington Regional Medical Center, with a combined total of 326 beds, and
the Veterans Hospital, with a total of 254 beds. Washington Regional Medical Center was
recently expanded and is now the most modern and best equipped hospital in the Northwest
Arkansas area.
-16--
m=1-
•
A
.k.1F•
Nov
4- The
•
• •
Ratings are not being requested.
•
•••••
RATINGS
It -
TAX EXEMPTION
The delivery of the Bonds is subject to an opinion of Messrs. Friday, Eldredge & Clark, little
Rock, Arkansas, Bond Counsel to the City ("Bond Counsel"), to, the effect ,that interest%on the
Bonds is exempt from all present' Federal income taxes under existing statutes, rulings, regula-
tions and court decisions.The laws, regulations,'court decisions and administrative rcgula-
tions and rulings upon which the conclusion stated in Bond Counsel's opinion will be based are
subject to change by the -Congress, the Treasury Department and later judicial and administra-
tive decisions.
REGISTRATION AND QUALIFICATION OF BONDS FOR SALE
The sale of the Bonds has not been registered under the Feclarej- SecUrceies Act of 1933, is
amended, in reliance upon the exemption provided thereunder Sect:it:m30Y (2); and the Bonds
have not been qualified under the securities acts of any jurisdictiOn." The City assumes no
responsibility for qualification of the,Bonds_under the securities laws of any jurisdiction in
ich the Bonds may be sold, Assigned, Olecided,-Fiypot.hecated Or'otheemise transferred. This
disclaimer of responsibility for qualification for sale or other dispositIon'of the Bonds shall
not be construed as an interpeetation of any kind with regard to the availability of any
exemption from securities registeation provisions. The opinion of Bond Counsel will not
include any opinion reflecting the status of,the Bonds under the securities law of any juris-
diction.
LEGAL INVESTMENTS IN ARKANSAS
No •review •of the laws of any state, including Arkansas, has been made to determine whether the
'Bonds are legal investments for various institOtions in those states. The opinion of Bond
Counsel will not include any opinion respecting the legality of investment for various institu-
tions in those states.
LEGAL OPINIONS AND NO -LITIGATION CERTIFICATE
The City will furnish a complete transcript of proceedings had incident to the authorization
and issuance of the Bonds, including:the unqualified -approving legal opinion of Bond Counsel,
to the effect that the Bonds are valid'and legally binding obligations of the City, and, to like
effect and to the effect that the interest on the Bonds is exempt from Federal incoMe taxation
under existing statutes, regulations, -rulings and court decisions. The customary closing
papers, including a certificate to-theeffect that no litigation of any nature has been filed or
is then pending to restrain the issuance and delivery of the Bonds, or which would affect the
provision made for their payment or security, or in any manner questioning the validity of said
Bonds or the coupons appertaining thereto; will also be furnished. Bond Counsel was not
requested to participate, and did not take paet,..-in...the preparation of the Official Statement,
and such firm has not assumed any responsibility with respect thereto or undertaken inde-
pendently to verify any of the information contained therein, except that, in its capatity as
Bond Counsel, such firm has reviewed .the information describing the Bonds in the Official
Statement to verify that such description conforms to the provisions of the bond resolution.
The legal fees to be paid Bond Counsel for services rendered in connection with the issuance of
the Bonds are contingent on the sale andbdelivery of the Bonds and will be paid from Bond
proceeds. The legal opinion will be printed on'the Bonds. All other expenses of issuance will
be paid from Bond proceeds.
AUTHENTICITY OF FINANCIAL INFORMATION
The financial data and other information contained -herein have been obtained from the City's
records, audited financial statements and other sources which are believed to be reliable.
There is no guarantee that any of the assumptions or estimates contained herein will be
realized. All of the summaries of the statutes, documents and resolutions contained in this
Official Statement are made subject to all 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.
- 17 -
CERTIFICATION OF THE OFFICIAL STATEMENT
At the time of payment for and delivery of the Bonds, the Purchaser will be furnished 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 pertain-
ing to the City contained in its Official Statement, and any addenda, supplement or amendment
thereto, on the date of such Official Statement, on the date of sale of said Bonds 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 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, includ-
ing financial data, of or pertaining to entities, other than the City, and their activities
contained in such Official Statement are concerned, such statements and data have been obtained
from sources which the City believes to be reliable and that 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 City will furnish the Purchaser,
copy of a resolution of the Board of
will approve the form and content of
amendment thereto, and authorize its
chaser.
ATTEST:
ANGELA R. MEDLOCK
City Clerk
City of Fayetteville, Arkansas
as a part of the transcript of proceedings, a certified
Directors as of the date of the sale of the Bonds which
this Official Statement, and any addenda, supplement or
further use in the reoffering of the Bonds by the Pur-
-18 -
DAVID MALONE
Mayor
City of Fayetteville, Arkansas
'• -APPENDIX
-
The information contained in.this Appendix has been reproduced
from the City of Fayetteville, Arkansas General Fund Audit
Report for the Fiscal Year Ended December 31, 1978. The infor-
mation as presented represents only a part of the General Fund
Audit Report and does not purport to be a complete statement of
the City's General Fund financial condition. Reference is
made to the complete General Fund Audit Report for further
information.