Page 67 - Burleson FY22 City Budget

4) CAPITAL PROJECT FUNDS NON-BONDED - COMMITTED

i. 301 Street Paving Trust – Committed
ii. 302 Park Dedication Fund – Committed
iii. 352 Miscellaneous Capital Projects – Committed
iv. 351 4A Sales Tax Capital Project Fund – Committed
v. 350 4B Sales Tax Capital Project Fund – Committed
vi. 353-354 Mineral Lease Funded Capital Projects – Committed

3) CAPITAL PROJECT FUNDS BONDED – RESTRICTED Order of expenditure -- When committed,
assigned and unassigned resources can be used for the same purpose, funds shall be spent in the sequence of
committed resources first, assigned second, and unassigned last.

4) When it is appropriate for fund balance to be assigned, the Council delegates that authority to the Director of
Finance.

5) It is the goal of the City that the unassigned fund balance of the General Fund should be at least 20% of the General
Fund annual expenditures. This percentage is the equivalent of 73 days’ expenditures. In order to adhere to the
principles of matching current revenues with current expenditures and minimizing property taxes, the City will strive
to maintain the fund balance if the unassigned balance grows beyond 90 days’ expenditures.

6) The Water and Wastewater Fund working capital should be maintained at least at 20% of total operating
expenditures or the equivalent of 73 days.

7) It is the goal of the City that the fund balance of the 4A Corp and 4B Corp, should maintain at least a 20% minimum
of total operating expenditure or the equivalent of 73 days.

C. CAPITAL AND DEBT SERVICE FUNDS

1) Items in the Capital Projects Funds will be completed and paid for within 36 months of receipt of proceeds. Balances
will be used to generate interest income to offset construction costs.

2) General Obligation Debt Service Funds will not have reserves. ..
The policy above does not preclude the debt service reserves normally established to market revenue bonds. The
City's policy and bond ordinance requirements are to maintain these debt service reserves at the level of the
average annual debt service.
3) Revenue Obligations will maintain Debt Coverage Ratios as specified by the bond covenants. The City is currently
required to have net revenues in excess of average annual debt by 1.25 times. Net revenues must also exceed the
maximum outstanding debt by 1.10 times. Both these tests must be met in order to issue additional bonds.

4) Obligations of Burleson’s economic development corporations will maintain coverage ratios as specified by bond
covenants. If the City issues obligations partially secured by a limited pledge of the corporations’ sales tax revenues,
not subject to the coverage ratios of the revenue bond covenants, coverage shall be maintained at no less than
1.25 times average annual debt service, and 1.15 times the maximum annual debt service. Both of these tests
must be met in order to issue additional bonds.

X. TREASURY AND DEBT MANAGEMENT

A. CASH MANAGEMENT. Periodic review of cash flow position will be performed to determine performance of cash
management and investment policies. A detailed policy structure will be followed with respect to Cash/Treasury
Management. The underlying theme will be that idle cash will be invested with the intent to 1) safeguard assets, (2)
maintain liquidity, and 3) maximize return. Where legally permitted, pooling of investments will be done.

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