Page 116 - CityofBurlesonFY26Budget

• 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 the 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 earnings received on the investment of bond
proceeds shall be used to assist in paying the cost associated with the

capital project or be used toward the repayment of debt. The City is
committed to continuing disclosure of financial and pertinent credit
information relevant to the City’s outstanding securities and will abide by
the provisions of the Securities and Exchange Commission (SEC) or other
laws, as applicable.
• The City may utilize a reimbursement resolution approved by the City

Council to begin working on capital projects prior to issuing debt. In
general, reimbursements are made no later than 18 months after the later
date of the original expenditure is made or the date the project is placed in
service, but in no event more than 3 years after the original expenditure is
paid.

STRUCTURE OF DEBT

Debt service shall be structured to the greatest extent possible to:

1. Target projected cash flows and pledged revenues;
2. Minimize the impact on future tax levies;
3. Target a consistent and as rapid as feasible payment of principal;

4. Maintain a level overall annual debt service payment structure; and
5. Target the equal or the lesser of the useful life of the asset being financed.

109