Page 119 - CityofMansfieldFY24Budget

The Assessed Taxable Valuation in FY 2023-2024 is $9,216,648,976

The Legal Debt Limit (15%) is $1,382,497,346

General Obligation Bonds and Certificates of Obligation total $192,175,000

The Legal Debt Margin is $1,190,322,346

Types of Debt and Criteria for Issuance of Types of Debt

The City may choose to issue debt under any provision allowed for and permitted by State Statute.
Although debt is an obligation to be repaid, it can assume many forms. The form and character of debt is
typically determined by the nature of the funding source and nature of the asset to be purchased or
improved. However, debt can generally be categorized into two types, as determined by the Federal
Income Tax Code: Governmental Bonds and Private Activity Bonds, either of which may be taxable or
tax-exempt. In determining the type of security for financing an improvement or purchasing of a capital
asset, the City may consider the following, and is not limited to the following:

Debt Form

General Obligation Facility:

General Obligation Bonds (“GOs”) Tax levy as security for the bonds
Voter’s Approval
Specific Public Purpose

Certificates of Obligation (“COs”) Tax levy and/or revenue pledge as security
Specific public purpose
Public Notice; hearings and advertisement

Public Property Finance Contractual Tax levy and/or revenue pledge as security
Obligations (“PPFCOs”) Acquisition of personal property
Alternative for lease/purchase

Anticipation Notes Tax levy and/or revenue pledge as security
Construction of Public Works
Acquisition of real and personal property
Cumulative cash flow deficit
Professional services
Maturity is maximum of seven years

Revenue Facility:

Revenue Bonds Revenue pledge as security
Pledge to set rates and fees to meet covenants
Bond Reserve Fund for surety
Covenant reporting
Equitable rate structure
First lien security with parity
Construction of capital improvements

118