Title
Consider a memorandum/resolution readopting the Financial Governance Policy, to include the Investment Policy.
Body
DATE: February 18, 2025
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 4, 2025, 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 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 VIII(C)(1)(2), Water and Sewer Rates - Removed rates and only reference the tiers to which water and sewer rates are billed and added "Most current rates are established in City ordinance, effective October 1st of each year"
* Section IX(C), Purchasing- The City Manager may approve all contract change orders that involve an increase or decrease to the original contract of $50,000 or less, added "or designee" to allow the City Manager to appoint a designee to assist in the approval of these change orders
o Removed "The City will move towards centralized purchasing in accordance with ...
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