Title
Consider a memorandum/resolution to readopt the Financial Governance Policy, to include the Investment Policy, as amended.
Summary
DATE: February 7, 2023
TO: Kent Cagle, City Manager
FROM: Judith Tangalin, Executive Director of Finance
SUBJECT: Financial Governance Policy and Investment Policy Annual Review
BACKGROUND AND FINDINGS:
Killeen's Financial Governance Policy was first adopted by City Council on December 19, 2017. The governance policy establishes the framework for the fiscal management of the City and aids in the evaluation of current operations, proposed programs, and the long-term financial stability of the City.
The Financial Governance Policy requires an annual review to begin no later than January of each year. The Investment Policy is part of the Financial Governance Policy. Texas Government Code, Chapter 2256, known as the Public Funds Investment Act (PFIA), requires the Investment Policy to be reviewed and adopted by resolution at least annually.
The Investment Committee met on November 29, 2022, and approved revisions to the City's Investment Policy. There were five approved changes that will help further align the City's policy with the Public Funds Investment Act (PFIA). The changes include the following:
1) Section XXII(G)(2)(9) - Adding Interest-bearing banking deposits that are FDIC insured to the eligible investments section
2) Section XXII(G)(2)(10) - Addition of commercial paper as a permissible investment
3) Section XXII(H)(4) - Updating language as it relates to the Broker/Dealers and Approved List process
4) Section XXII(H)(5) - Updating language as it relates to the trade execution
5) Section XXII(K)(2) - Update to weighted average maturity and maximum investment terms
The review of the Financial Governance Policy began at the January 17, 2023, City Council Workshop. At the workshop, staff briefed City Council on proposed changes to the governance policy. The changes were the result of staff monitoring th...
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