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File #: 23-580    Version: 1
Type: Consent Status: Agenda Ready
File created: 8/17/2023 Meeting Body: City Council
On agenda: 9/5/2023 Final action:
Title Search: Consider a resolution adopting the 2023 City of Keller Financial Management, Investment, Purchasing, and Fund Balance Policies as approved and recommended by the City of Keller Finance Committee.
Attachments: 1. 090523_Financial_Policies_Resolution, 2. 090523_Financial_Management_Policy_2023_Proposed, 3. 090523_Fund_Balance_Policy_2023_proposed, 4. 090523_Investment_Policy_2023_Proposed, 5. 090523_Purchasing_Policy_2023_proposed
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To:                     Mark R. Hafner, City Manager

From:                     Aaron Rector, Director of Administrative Services

Subject:                     

Title

Consider a resolution adopting the 2023 City of Keller Financial Management, Investment, Purchasing, and Fund Balance Policies as approved and recommended by the City of Keller Finance Committee.

Body

 

Background:                     

As part of the Financial Management policy and Investment policy requirements, Council annually reviews and adopts the Financial Management, Investment, Purchasing, and Fund Balance Policies.  The policy reviews helps ensure the policies are up to date, meet regulatory requirements such as the Public Funds Investment Act (PFIA), and reflect best practices. 

For the Financial Management Policy, there have been adjustments to the enterprise fund working capital descriptions and discussion of use of debt for operating costs. 

For the Investment Policy, there have been adjustments to collateralization requirements related to letters of credit for certificates of deposit and some general language clean-up. 

For the Purchasing Policy, removes the phrase “during a fiscal year” related to contracts under $50,000 since multi-year contracts still require Council approval. Adoption of the three proposed policies and the proposed Investment Policy will be considered by City Council as one item at a Council meeting prior to the end of the fiscal year.

For the Fund Balance Policy, the proposal increases the General Fund minimum fund balance by 5% and maximum by 10%, changes the debt requirement from 10% to 25%, increases Self-Insurance requirement from 75% to 100%, and removes the $500,000 minimum from the stabilization formula.                     

                                          

Financial Impact:

N/A

 

Citizen Input/Board Review:                     

The City of Keller Finance Committee reviewed and approved the proposed policy revisions at their meeting on August 15, 2023. 

 

Legal Review:                       

Not applicable.

 

Alternatives:                     

City Council has the following alternatives:                       

-                     Approve as submitted

-                     Approve with changes

-                     Denial

 

Council Action:                     

Staff recommends approval of the proposed resolution as presented.