Page 430 - Hurst FY19 Approved Budget

refunding’s, as listed on the previous page, have provided the opportunity to lower the
debt rate by about 2 cents. The net result of bond issuance and refunding over the past
ten years is an increase in the debt rate of approximately 3 cents.

The City’s debt management policy is conservative.
1. The City diligently monitors its compliance with bond covenants.
2. The City will maintain appropriate communications with bond rating
agencies and the Municipal Securities Rating Board (MSRB) regarding its
financial condition. The City’s present ratings are Aa2 (Moody’s) and AA
(Standard & Poor). Due to a recalibration by Moody’s the City’s rating was
upgraded from an Aa3 to an Aa2 in 2009-2010.
3. An analysis will be prepared for each long term financing activity that
shows the impact on current and future budgets for debt service and
General Fund operations.
4. Issues are evaluated each year to prioritize projects and ensure sound debt
capacity. The debt issuance policy will continue to be addressed in the
City Council’s annual Strategic Planning Process held in February each year.

Debt Issuance

Historically, issuances have been around $5 million per year for all funds. However,
during the past six to eight years, the City began issuing debt to satisfy the November
2005 bond election and the Transforming Hurst initiative. Market conditions also
provided perfect opportunities to refinance or refund existing debt.

The following summarizes the City’s debt issuances and refunding’s for 2008 though
2017.

• In 2008, the City issued its first debt for the Transforming Hurst Town Center
project. A total of $15.5 million was issued in 2008 for Transforming Hurst with
$12 million allocated to the Hurst Conference Center. The total 2008 debt
issuance equaled $16.1 million with only $2.23 million to be supported by the
General Debt Service Fund. The Conference Center debt is supported by the
Community Services Half-Cent and Hotel Motel Funds.
• In 2009, the City issued $6 million in CO’s with $2 million, plus issuance costs,
being supported by the General Debt Service Fund. The $2 million will provide
partial funding for Pipeline Road Improvements. The City also refunded $2.6
million of tax supported debt in 2009 which provided $198,350 in annual
savings.
• During 2011-2012, $2.7 million of General Obligation bonds were refunded.
The 2012 Bond Election was approved by voters and $16.5 million in General
Obligation Bonds were also issued for the construction of a Justice Center and
related parking facilities.

413