Page 65 - Hurst Adopted FY22 Budget

APPROVED FISCAL YEAR 2022 BUDGET

debt management policies

Debt Management Policies

The City’s debt management policy is conservative. It is summarized below.

1. The City will diligently monitor its compliance with bond covenants.
2. The City will maintain good communications with bond rating agencies regarding its
financial condition. The City’s present ratings are (Moody’s) Aa2 and (Standard & Poors)
AA.
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. Debt capacity will be calculated annually. New debt will be issued only when sufficient
capacity exists under existing tax rates or when voters or the City Council approve an
increase in the tax rate to service new debt.

This policy and planned debt issuances will continue to be addressed in the City Council’s annual
Strategic Planning meeting typically held in March each year.

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