Page 437 - FortWorthFY23AdoptedBudget

improvements and additions. The useful life of the asset or project shall
exceed the payout schedule of any debt the City assumes.

B. Assumption of Additional Debt

The City shall not issue more long-term debt than it retires each year
without first conducting an objective analysis as to the City’s ability to
assume and support additional debt service payments. When appropriate,
self-supporting revenue bonds shall be considered before general
obligation bonds.

To the extent permitted by State law, commercial paper may be utilized
and/or issued in the City’s tax-supported and revenue-supported bond
programs in order to: (1) provide appropriation authority for executing
contracts on bond-funded projects; (2) provide interim construction
financing; and (3) take advantage of lower interest rates in the short-term
market; all of which provide the City with flexibility in timing its entry
into the long-term fixed rate market.

C. Affordability Targets

1. General Obligation Bonds

The City shall use an objective analytical approach to determine
whether it can afford to issue new general purpose debt (General
Obligation bonds, tax notes, public property finance contractual
obligations and Certificates of Obligation) beyond what it retires
each year. This process shall take into consideration any potential
impact to the City’s credit ratings, the growth in the City’s taxable
assessed value, applicable State laws and the targeted debt service
tax rate. The process shall also examine the direct costs and
benefits of the proposed expenditures. The decision on whether or
not to issue new debt shall be based on these costs and benefits, the
current conditions of the municipal bond market, and the City's
ability to "afford" new debt as determined by the aforementioned
standards.

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