Page 66 - CityofBurlesonFY25AdoptedBudget

 The City will not issue debt obligations or use debt proceeds to finance
current operations or normal maintenance.

 Debt financing includes general obligation bonds, certificates of obligation,
revenue bonds, lease/purchase agreements and other obligations
permitted to be issued under Texas law.

 The City shall review its outstanding debt annually for the purpose of
determining if the financial marketplace will afford the City the opportunity
to refund an issue and lessen its debt service cost. As a general rule, the
present values savings of a particular refunding should exceed three and
one-half percent (3.5%) of the refunded maturities, unless a restructuring
or bond covenant revision is necessary in order to facilitate the ability to

provide services or issue additional debt in accordance with the established
debt policies.

 The City will utilize debt obligations only for acquisition, construction,
reconstruction or renovation of capital improvement public infrastructure
projects, and capital equipment that cannot be funded from current

revenue sources or in such cases where it is more equitable for the project
to be financed over its useful life or a period of not to exceed its useful life.

 The City will measure the impact of debt service requirements of
outstanding and proposed debt obligations on a single year, five, and

twenty year periods. This analysis will consider debt service maturities and
payment patterns as well as the City’s commitment to cash fund capital
projects.

 The City will seek advice and services of a Financial Advisor in performing
the bond issuance process. The City will also seek the advice of Bond

Counsel as to the legality and tax exempt status of any obligations.

 The bond proceeds will be invested in accordance with the City’s
investment policy. Interest earning received on the investment of bond

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