Page 264 - City of Arlington FY19 Adopted Operating Budget

Appendices

STATEMENT OF FINANCIAL PRINCIPLES (CONTINUED)

Debt Management – Certificates of Obligation

 It is the City's priority to fund capital expenditures with cash or voter approved debt. However, non-voter approved debt
may be used for capital expenditures as an alternative to lease/purchase or other financing options if the capital
expenditure is:
o Urgent;
o Necessary to prevent an economic loss to the City;
o Revenue generating and expected to cover debt service out of the revenue source;
o Non-voter approved debt is the most cost-effective financing option available.

 The average maturity of non-voter approved debt shall not exceed the average life of the capital items financed.

 Capital items financed with non-voter approved debt shall have an expected economic life of at least 3 years.

Adopted by resolution No. 00-526 on August 22, 2000.

2019 Adopted Budget and Business Plan 249 City of Arlington, Texas