Page 127 - Mansfieldr FY20 Approved Budget

Financial Advisor

The City will retain an external financial advisor. The financial advisor must have comprehensive
municipal debt experience and experience in diverse financial structuring requirements. The City
financial advisor must also be of reputable character and in good standing with SEC and the MSRB.

Bond Counsel

The City will retain an external bond counsel. Bond Counsel must have comprehensive municipal debt
experience and experience in diverse financial structuring requirements. Bond Counsel must also be of
reputable character and in good standing with Texas Law Review Board.

Other Service Providers
The City shall select other service providers (e.g. escrow agents, verification agents, trustees, arbitrage
consultants, etc.) as necessary to meet legal requirements and minimize net City debt costs.

Arbitrage Compliance
The City shall maintain its books and records in a manner consistent with the provision allowed for under
the Internal Revenue Code Section 148. Furthermore, the City shall have its arbitrage exposure
calculated annually and appropriately recognized in the City’s Comprehensive Annual Financial
Statement.

Investment of Bond Proceeds

All bond proceeds shall be invested in accordance with the City Investment Policy. The proceeds shall be
invested as part of the City’s consolidated cash pool and accounted for separately and accordingly to bond
covenants and the Internal Revenue Code.

Calculation of the City of Mansfield Legal Debt Limit
The City Charter of the City of Mansfield, Texas and the statutes of the State of Texas do not prescribe a
legal debt limit. However, Article XI, Section 5 of the Texas Constitution, applicable to cities of more
than 5,000 populations, limit the ad valorem tax rate to $2.50 per $100 of assessed valuation. The City
operates under a Home Rule Charter that also imposes a limit of $2.50 per $100 of assessed valuation.
The FY 2019-2020 budgeted property tax rate is $0.71000 per $100 valuation with a tax margin of
$1.79000 per $100 valuation based upon the maximum ad valorem tax rate noted above. Additional
revenues up to $137,820,084 per year could be raised before reaching the maximum allowable tax base.

Assessed Value x Legal Debt Limit (15% of Assessed Value)
-
General Obligation Bonds and Certificates of Obligation
=
Legal Debt Margin

The Assessed Taxable Valuation in FY 2019-2020 is $7,699,446,023

The Legal Debt Limit is $1,154,916,903

General Obligation Bonds and Certificates of Obligation is $138,605,000

The Legal Debt Margin is $1,016,311,903

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