Page 98 - CityofBurlesonFY26Budget

maximum outstanding debt by 1.10 times. Both these tests must be met in
order to issue additional bonds.

3) Obligations of Burleson’s economic development corporations will maintain
coverage ratios as specified by bond covenants. If the City issues obligations
partially secured by a limited pledge of the corporations’ sales tax revenues,
not subject to the coverage ratios of the revenue bond covenants, coverage
shall be maintained at no less than 1.25 times average annual debt service,
and 1.15 times the maximum annual debt service. Both of these tests must be
met in order to issue additional bonds.

X. TREASURY AND DEBT MANAGEMENT

A. CASH MANAGEMENT. A periodic review of cash flow position will be performed
to determine performance of cash management and investment policies. A
detailed policy structure will be followed with respect to Cash/Treasury
Management. The underlying theme will be that idle cash will be invested with
the intent to 1) safeguard assets, (2) maintain liquidity, and 3) maximize return.
Where legally permitted, pooling of investments will be done.

The City will adhere to the investments authorized through the Texas’ Public Funds
Investment Act and the city’s established comprehensive Investment Policies and
Guidelines. Such policies clarify acceptable investment securities, brokers, terms,
and other pertinent investment information.

B. DEBT MANAGEMENT. The City’s Debt Management Policy establishes parameters
and provides guidance governing the issuance, management, continuous
evaluation of and reporting on all debt obligations issued by the City, and to
provide for the preparation and implementation necessary to ensure compliance
and conformity with this policy.

XI. INTERNAL CONTROLS

A. WRITTEN PROCEDURES. Written procedures will be established and maintained
by the Director of Finance for all functions and financial cycles including cash
handling and accounting throughout the City. These procedures will embrace the
general concepts of fiscal responsibility set forth in this policy statement.

B. DEPARTMENT DIRECTORS AND MANAGERS RESPONSIBILITY. City administrators
and managers are charged with the responsibility for establishing a network of
processes with the objective of controlling the operations of the City in a manner
which provides reasonable assurance that:

1) Data and information published either internally or externally is accurate,
reliable, complete, and timely.

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