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City of Mansfield Annual Budget and Service Program Fiscal Year 2025-2026 Table of Contents

market volatility is unpredictable. In some cases, this may mean investors are not willing to commit
capital in uncertain economic environments, or the size of the issue may not attract the bids for a
successful sale. Moreover, the primary purpose of the negotiated sale is to solicit the interest rate
environment for the City to sell bonds.
Private Placement: The City will seek to privately place its bonds with a select group of investors
when the issuance warrants the sophistication of the buyer. The City will ensure that the placement
fee is less than a typical underwriter’s fee in a negotiated offering of a comparable type of sale in a
similar sale environment.

Refunding of Debt

The City of Mansfield, Texas shall monitor the municipal bond market for opportunities to refund
outstanding debt to save the City from future interest costs. As a general rule, the savings shall be
at least 3% greater than the cost of carrying the existing debt inclusive of issuance costs and any
cash contributions. However, if the value of the savings exceeds the cost of the refunding and is
greater than $100,000 but is less than 3% of the savings, then the City shall consider refunding the
existing debt. Arbitrage rules are to be considered when refunding debt.

Credit Objectives

The City of Mansfield, Texas shall seek to attain and maintain the highest possible bond ratings for
its outstanding debt without compromising the delivery of basic City services. Currently, the City
maintains four ratings with Fitch, Moody’s, and Standard & Poor’s.

Fitch, IBCA Moody’s Standard & Poor’s
General Obligation AA+ Aa1 AAA
Sales Tax Revenue AA+ Aa1/Aa2 A+/AAA

Drainage Revenue AAA Aa2 Aa2
Water & Sewer AAA Aa2 AA+

It is and will be the continued policy of the City of Mansfield to provide full disclosure of information
about the City’s operating activity to the rating agencies. The City shall maintain an open line of
communication with the rating agencies to allow for the free exchange of information between the
City and the agencies.

Secondary Market Disclosure
SEC 15c2-12 regulations became effective July 3, 1995. The City shall continue to provide financial
data to the Nationally Recognized Municipal Information Depository (NRMSIRs), EMMA and the
State Information Depositories (SIDs). The City will and has complied with secondary reporting
requirements of SEC 15c2-12.

Financial Advisor

The City will retain an external financial advisor. The financial advisor must have comprehensive
municipal debt experience and experience in diverse financial structuring requirements. The City
financial advisor must also be of reputable character and in good standing with the SEC and the
MSRB.

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