Page 76 - BurlesonFY24AdoptedBudget

Purpose of Issuance – The City will issue debt obligations for acquiring,

constructing, reconstructing or renovating Capital Improvements or for
refinancing existing debt obligations. Projects must be designated as public
purpose projects by the City Council prior funding

Maximum Maturity – All debt obligations shall have a maximum maturity
of the earlier of,

 The estimate useful life of the Capital Improvements being financed;

 Or twenty years except for special purpose debt as determined by
the City Council which may be finance for periods consistent with the
purpose of the debt;

 Or debt issued to refinance outstanding debt obligations, the final
maturity of the debt obligations being refinanced, unless the

Financial Advisor recommends a longer term.

Outstanding Debt – Finance Director will monitor and report the
outstanding debt to the City Council at least annually. The Finance Director
is responsible for monitoring the maturities and terms and conditions of all
obligations to ensure compliance.

Future debt – Debt will be structured by reviewing the 5-year CIP plan,
growth of the City, and level or declining debt service payments over the
life of existing bonds.

Self-Supporting Debt – Bonds backed with the general obligation pledge

often have lower interest rates than revenue bonds. The City may use its
general obligation pledge with self-supporting debt when the population
served by the self-supporting bond projects overlap or significantly are the
same as the property tax base of the city. The City Council and
management are committed to maintaining rates and fees structures and
revenue stream of revenue supported debt at levels that will not require a
subsidy from the City’s General Fund.

76
76