Page 121 - CityofBurlesonFY26Budget

Outstanding Debt – The Finance Director will monitor and report the outstanding
debt to the City Council at least annually. The Finance Director is responsible for
monitoring the maturities and terms and conditions of all obligations to ensure
compliance.

Future debt – Debt will be structured by reviewing the 5-year CIP plan, growth of
the City, and level or declining debt service payments over the life of existing
bonds.

Self-Supporting Debt – Bonds backed with the property tax pledge often have
lower interest rates than revenue bonds. The City may use its property tax pledge
with self-supporting debt when the population served by the self-supporting bond
projects overlaps or significantly are the same as the property tax base of the City.

The City Council and management are committed to maintaining rates and fees
structures and a revenue stream of revenue supported debt at levels that will not
require a subsidy from the City’s General Fund.

Net Debt Per Capita – is the amount of debt outstanding for each citizen of a
jurisdiction. Net direct debt is the sum of all general obligation bonds and notes

outstanding less any self-supporting obligations, overlapping debt, and revenue
debt. The City shall strive to maintain the current Net Debt per Capita at or
below $3,000.

Net Debt to Assessed Value – Assessed valuation shows the fiscal capacity of the
tax base. The City shall strive to maintain a ratio of Net Debt to Assessed Value of
properties in the City at or below three percent (3%).

Debt Service Tax Rate – The City will target a debt service tax rate the makes up

40% or less of the City’s total property tax rate.

Bond Covenants and Laws – The City shall comply with all covenants and
requirements of its bond ordinances, the State and Federal laws authorizing and
governing the issuance and administration of debt obligations.

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