Page 267 - Saginaw FY22 Adopted Annual Budget
P. 267

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).











                                                              9




                                                            261
   262   263   264   265   266   267   268   269   270   271   272