Title
Consider a memorandum/resolution readopting the Financial Governance Policy, to include the Investment Policy.
Body
DATE: February 17, 2026
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 review of the Financial Governance Policy began at the February 3, 2026, City Council Meeting. At the meeting, staff briefed City Council on proposed changes to the governance policy. The changes were the result of staff monitoring the application of the governance policy over the past year and identifying changes to improve the application of the policy.
Highlights of the requested changes include:
• Section XIII (A), Capitalization Threshold - Increased the capitalization threshold for individual items from $5,000 to $10,000
• Section XXIV (C), Senior Citizen Utility Bill Assistance Program, 2. Application and Eligibility - Added the following criteria to the eligibility requirements:
o Requires 12 months of utility account history prior to applying for assistance
o Income Requirements
§ Gross household income, before taxes, must not exceed 150% of the Federal Poverty Income Guidelines (FPIG) based on household size.
§ All persons residing in the household shall be included for income determination, regardless of relationship to the applicant.
§ Both fixed and earned income sources shall be considered.
§ Income eligibility limits are established annually by the U.S. Department of Health and Human Services and referenced in the Financial Management Policy.
o Applications valid for sixty (60) days from date of submission
o Documentation required to verify age, residency and household income
THE ALTERNATIVES CONSIDERED:
N/A
Which alternative is recommended? Why?
N/A
CONFORMITY TO CITY POLICY:
Yes, the City of Killeen Financial Governance Policy document which includes the investment policy states that the policy will be reviewed and adopted by resolution of the City Council at least annually. The Investment Committee reviews the investment policy and if necessary, recommends revisions to the investment policy each year to ensure compliance with the Public Funds Investment Act.
Texas Government Code 2256.005 states that the governing body of an investing entity shall review its investment policy not less often than annually. The statue requires the governing body to adopt a written instrument by rule, order, ordinance, or resolution stating that it has reviewed the investment policy and that written instrument so adopted record any changes made to the investment policy.
In addition, the Financial Governance Policy is a comprehensive source of financial policies developed within the parameters established by applicable provisions of the Texas Local Government Code, the Texas Government Code, the Texas Tax Code, the City of Killeen Charter, the Government Finance Officers Association, and the Governmental Accounting Standards Board
FINANCIAL IMPACT:
What is the amount of the revenue/expenditure in the current fiscal year? For future years?
N/A
Is this a one-time or recurring revenue/expenditure?
N/A
Is this revenue/expenditure budgeted?
N/A
If not, where will the money come from?
N/A
Is there a sufficient amount in the budgeted line-item for this revenue/expenditure?
N/A
RECOMMENDATION:
City Council readopt the Financial Governance Policy, to include the Investment Policy, as amended
DEPARTMENTAL CLEARANCES:
Finance
Legal
ATTACHED SUPPORTING DOCUMENTS:
Financial Governance Policy (redlined)
Financial Governance Policy (clean)
Presentation