Page 17 - CityofBurlesonFY26Budget

Expenditure Category FY25-26 Adopted % of Total

Salaries $31,291,583 48.93%
Benefits $13,359,257 20.89%
Reimbursement Personnel ($1,251,620) -1.96%
Personnel Development $567,297 0.89%
Supplies $871,457 1.36%
Minor Furniture & Equipment $515,328 0.81%
Outside Services $2,416,451 3.78%
Infrastructure Maintenance & Repair $2,447,078 3.83%
Equipment Maintenance & Repair $73,624 0.12%
Utilities $1,727,312 2.70%
Contribution to Internal Service Funds $7,339,686 11.48%
Claims & Insurance $569,887 0.89%

Miscellaneous $922,770 1.44%
Debt Service Charges $76,005 0.12%
Economic Development Incentives $1,123,672 1.76%
Capital Expenditures $171,451 0.27%
Transfers Out $1,735,548 2.71%
Total Expenditures $63,956,786 100.00%

Debt Service (Interest & Sinking [I&S]) Fund The city of Burleson currently holds $230,487,891
outstanding general obligation and certificate of obligation debt, including the estimated 2025
debt sales. $56,880,290 of that amount was issued for water, sewer infrastructure projects and
are paid from water, sewer revenues; however, to obtain more favorable financing terms, the
debt also has a tax pledge. $41,725,076 was issued on behalf of the 4A Corporation, $34,215,000
was issued on behalf of the 4B Corporation, and $8,245,000 was issued on behalf of the TIF2
Fund. The balance of tax supported debt, $89,422,525, was issued for general capital purposes
and is repaid from property taxes. Staff anticipates reducing the fund balance in the Debt
Service Fund from the projected FY24-25 year-end amount of $4,676,225 to $1,092,656 over
the next two years. This reduction will enable the city to implement a short-term financing
strategy to fund the purchase of costly apparatus.

In June 2022, the city received a rating upgrade from Moody’s. The city’s debt rating was
upgraded from Aa3 to Aa2 from Moody’s. The city applied for a rating from both Moody’s and
S&P Global in connection with the 2025 debt issuance. Both rating agencies reaffirmed the Aa2
by Moody’s and AA by S&P Global. The agencies stated the ratings reflect the city’s consistently
strong financial management while maintaining a healthy reserve.

Currently, the utility fund holds $58,720,290 in outstanding general obligation, certificate of
obligation, and revenue bonds. Of that amount, $1,840,000 is associated with principal from
outstanding revenue bonds. The city has worked closely with its financial advisors, Hilltop

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