Page 97 - CityofBurlesonFY26Budget

2) Ending fund balances of the City of Burleson shall be reported according to
the following classifications:

1) RESTRICTED

2) COMMITTED

3) ASSIGNED

4) UNASSIGNED

3) Order of expenditure --When committed, assigned and unassigned resources
can be used for the same purpose, funds shall be spent in the sequence of
committed resources first, assigned second, and unassigned last.

4) It is the goal of the City that the unassigned fund balance of the General Fund
should be at least 20% of the General Fund annual expenditures. This
percentage is the equivalent of 73 days’ expenditures. In order to adhere to
the principles of matching current revenues with current expenditures and
minimizing property taxes, the City will strive to maintain the fund balance if
the unassigned balance grows beyond 90 days’ expenditures.

5) The Water and Wastewater Fund working capital should be maintained at
least 20% of total operating expenditures or the equivalent of 73 days.

6) It is the goal of the City that the fund balance of the 4A Corp and 4B Corp,
should maintain at least a 20% minimum of total operating expenditure or the
equivalent of 73 days.

7) General Obligation Debt Service Funds will have a reserve of approximately
$1,000,000. The policy above does not include the debt service reserves
normally established to market revenue bonds. The City's policy and bond
ordinance requirements are to maintain these debt service reserves at the
level of the average annual debt service.

C. CAPITAL AND DEBT SERVICE FUNDS

1) Items in the Capital Projects Funds shall have the goal to be completed and
paid for within 36 months of receipt of proceeds. Balances will be used to
generate interest income to offset construction costs.

2) Revenue Obligations will maintain Debt Coverage Ratios as specified by the
bond covenants. The City is currently required to have net revenues in excess
of average annual debt by 1.25 times. Net revenues must also exceed the

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