Page 124 - Manfield FY21 Budget

It is and will be the continued policy of the City of Mansfield to provide full disclosure of information
about the City’s operating activity to the rating agencies. The City shall maintain an open line of
communication with the rating agencies to allow for the free exchange of information between the City
and the agencies.

Secondary Market Disclosure

SEC 15c2-12 regulations became effective July 3, 1995. The City shall continue to provide financial data
to the Nationally Recognized Municipal Information Depository (NRMSIRs), EMMA and the State
Information Depositories (SIDs). The City will and has complied with secondary reporting requirements
of SEC 15c2-12.

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 2020-2021 budgeted property tax rate is $0.69000 per $100 valuation with a tax margin of
$1.81000 per $100 valuation based upon the maximum ad valorem tax rate noted above. Additional
revenues up to $132,580,354 per year could be raised before reaching the maximum allowable tax base.

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