Title
Consider a memorandum/resolution readopting the Financial Governance Policy, to include the Investment Policy.
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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 de...
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