Page 298 - City of Westlake FY20 Budget

Section 7 Debt Service Funds
Debt Service Funds Overview

5. Sale Process - The Town shall use a competitive bidding process in the sale of debt unless the nature of
the issue warrants a negotiated bid. The Town shall award bonds based on a true interest cost (TIC) basis
as long as the financial advisor agrees that the TIC basis can satisfactorily determine the lowest and best
bid.

6. Bond Rating Agencies Presentations - Full disclosure of operations and open lines of communication shall
be made to the bond rating agencies. Town staff, with assistance of financial advisors, shall prepare the
necessary materials and presentation to the bond rating agencies.

7. Continuing Disclosure - The Town is committed to continuing disclosure of financial and pertinent credit
information relevant to the Town's outstanding securities.

8. Debt Refunding - Town staff and the financial advisor shall monitor the municipal bond market for
opportunities to obtain interest savings by refunding outstanding debt. As a general rule, the present
value savings of a particular refunding should exceed 3.5% of the refunded maturities.

Debt per Capita
In order to make apples-to-apples
comparisons of debt levels between
different municipalities, analysts often use
measures like debt per capita, or the amount
of bonded debt outstanding for each
resident. It does not include interest
expense.

It is important to note, the rating agencies
take into consideration not only gross debt
ratios, but more notably net debt ratios.
While the Town’s bonded debt is ultimately secured by a pledge of its ad valorem tax, the majority of it is
actually paid from municipal sales tax revenues and other sources.

The following series will be paid with property taxes.
• Series 2011 CO for street infrastructure
improvements and repairs
• Series 2013 CO for the Westlake Academy
Expansion
• Series 2013 GO-Refunding for the Arts and
Sciences Center
This comparison results in a more accurate reflection
of the Town’s net debt per capita.

286