Page 91 - BurlesonFY24AdoptedBudget

2) General Obligation Debt Service Funds will not have reserves.
The policy above does not preclude the debt service reserves normally
established to market revenue bonds. The City's policy and bond ordinance
requirements are to maintain these debt service reserves at the level of the
average annual debt service.

3) Revenue Obligations will maintain Debt Coverage Ratios as specified by the
bond covenants. The City is currently required to have net revenues in excess
of average annual debt by 1.25 times. Net revenues must also exceed the
maximum outstanding debt by 1.10 times. Both these tests must be met in
order to issue additional bonds.

4) Obligations of Burleson’s economic development corporations will maintain
coverage ratios as specified by bond covenants. If the City issues obligations
partially secured by a limited pledge of the corporations’ sales tax revenues,
not subject to the coverage ratios of the revenue bond covenants, coverage
shall be maintained at no less than 1.25 times average annual debt service,
and 1.15 times the maximum annual debt service. Both of these tests must be
met in order to issue additional bonds.

X. TREASURY AND DEBT MANAGEMENT

A. CASH MANAGEMENT. Periodic review of cash flow position will be performed to
determine performance of cash management and investment policies. A detailed
policy structure will be followed with respect to Cash/Treasury Management.
The underlying theme will be that idle cash will be invested with the intent to 1)
safeguard assets, (2) maintain liquidity, and 3) maximize return. Where legally
permitted, pooling of investments will be done.

The City will adhere to the investments authorized through the Texas’ Public
Funds Investment Act and the city’s established comprehensive Investment
Policies and Guidelines. Such policies clarifies acceptable investment securities,
brokers, terms, and other pertinent investment information.

B. DEBT MANAGEMENT. The City’s Debt Management Policy establishes parameters
and provides guidance governing the issuance, management, continuous
evaluation of and reporting on all debt obligations issued by the City, and to
provide for the preparation and implementation necessary to ensure compliance
and conformity with this policy.

XI. INTERNAL CONTROLS

A. WRITTEN PROCEDURES. Written procedures will be established and maintained
by the Director of Finance for all functions and financial cycles including cash

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