Page 115 - CityofBurlesonFY26Budget

assets; or to refinance existing debt for the purpose of meeting its governmental
obligations to its residents. It is the City’s objective to ensure that such debt
obligations are issued and administered in such fashion as to obtain the best long
term financial advantage for the City and its residents, while making every effort
to maintain and improve the City’s bond ratings.

This Policy applies to all debt instruments issued by the City regardless of the
funding source. Funding sources can be derived from, and debt secured by ad
valorem taxes, general City revenues, enterprise fund revenues or any other
identifiable source of revenue that may be identified for appropriate pledging for
bonded indebtedness.

General Debt Governing Policies

The City establishes the following policies on the issuance and management of
debt:

• 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.

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