Page 267 - Saginaw FY22 Adopted Annual Budget
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CITY OF SAGINAW, TEXAS
FINANCIAL MANAGEMENT POLICIES
D. Credit Ratings and Disclosures
1. The City will prudently manage the General and Enterprise Funds and
attempt to issue and structure debt to maintain or increase the current bond
ratings.
2. Full disclosure of operations and open lines of communications shall be
maintained with the rating agencies. City staff, with the assistance of financial
advisors, shall prepare the necessary materials and presentation to the rating
agencies.
3. The City will comply with required disclosure guidelines
E. Subject Matter experts and advisors — The City will select a financial bond
advisor to assist with the issuance and monitoring of debt activities. The financial
advisor will recommend other parties to use as bond counsel, rating agencies,
paying agents, escrow agents and others involved in a transaction. The City will
designate the financial advisor in such a manner to allow investors and
underwriting firms to participate in a bond transaction, in accordance with the
federal municipal advisor rule.
F. Debt Capacity
1. The City will adhere to tax rate limitations as set forth in Section 13. 04 of
the City Charter. The maximum tax rate ( combined interest & sinking and
maintenance & operations) will not exceed $ 1. 50 per $ 100 valuation of taxable
property.
2. The City' s total general obligation principal debt will not exceed 5% of the
taxable value.
3. The City will strive to limit general obligation annual debt requirements
Debt Service Fund expenditures) to 35% of general government expenditures
General Fund and Debt Service Fund expenditures combined). In the event that
debt service expenditures exceeds 35%, the City Manager shall present a plan to
the City Council to ensure annual debt is returned to 35% or less within a five year
period.
4. Revenue bond coverage ( Enterprise Fund) shall be maintained at a
minimum of 1. 25 ( net revenue available for debt service excluding depreciation
and transfers divided by debt service requirements).
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