Title
Consider a memorandum/resolution to readopt the Financial Governance Policy, to include the Investment Policy, as amended.
Summary
DATE: February 15, 2022
TO: Kent Cagle, City Manager
FROM: Jonathan Locke, Executive Director of Finance
SUBJECT: Financial Governance 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, requires the Investment Policy to be reviewed and adopted by resolution at least annually. There were no proposed changes to the Investment Policy.
The review of the Financial Governance Policy began at the January 18, 2022, 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(B)(1), User Fees and Rates Approved by City Council - Added Water and Wastewater Impact Fees.
* Section VIII(C)(1), Water Rate - Revised to reflect the October 1, 2021, rate adjustment.
* Section IX(D), Classification of Operating Expenditures - Expanded from five to eight categories to bring accounting, budgeting, and reporting in harmony.
THE ALTERNATIVES CONSIDERED:
There are three alternatives to consider:
1) Readopt without amendments.
2) Revise the amendments and readopt.
3) Accept the amendments and readopt.
Which alternativ...
Click here for full text