Page 120 - CityofBurlesonFY26Budget

SELECTION OF BOND COUNSEL

The City shall retain bond counsel for legal and procedural advice on all debt
issues. Bond counsel shall advise the City Council on all matters pertaining to its
bond ordinance(s) and /or resolution(s). No action shall be taken with respect to
any obligation until a written instrument (e.g., Certificate Ordinance or other legal

instrument) has been prepared by the bond attorneys certifying the legality of the
proposal. The bond attorneys shall prepare all ordinances and other legal
instruments required for the execution and sale of any bonds issued which shall

then be reviewed by the City Attorney and the Director of Finance. The City will
also seek the advice of bond counsel on all other types of debt and on any other
questions involving state law and federal tax or arbitrage law. Special counsel may
be retained to protect the City's interest in complex negotiations.

Debt Limit

• The maximum combined tax rate of the City is $2.50 per $100 valuation

under State law. Administratively solely for the purpose of approving as
valorem debt, the Attorney General will permit an allocation of $1.50 of the
$2.50 maximum tax rate for all ad valorem tax supported debt service, as
calculated at the time of issuance.
• The State of Texas does not prescribe a legal debt limit on the amount of
outstanding revenue bonds.

• The City of Burleson’s charter does not provide a debt limit lower than the
$2.50 maximum tax rate under State law.

Specific Debt Ratios and Measurements

This section establishes target debt ratios and measurements for the City. As the
City periodically addresses its ongoing needs, the City Manager and the City
Council must ensure that future elected officials will have the flexibility to meet
the capital needs of the City. This policy establishes targets which should provide
future flexibility.

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