To: Mark R. Hafner, City Manager
From: Aaron Rector, Director of Administrative Services
Subject:
Title
Consider a resolution adopting the 2020 City of Keller Financial Management, Investment, Purchasing, and Fund Balance Policies as approved and recommended by the City of Keller Finance Committee.
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. The Financial Management policy changes include reducing the percentage of tax rate for debt service from 40% to 30% and correcting miscellaneous typos. The Investment policy changes include updates to terms for collateralization as required by the City’s depository bank and removes redundant language. The Purchasing policy corrects a typo in the Emergency Purchases section. The Fund Balance policy has no changes.
Financial Impact:
As of the FY 2018-19 audit, all funds were above the current and proposed fund balance policies. However, the Pointe fund is anticipated to be below policy at the end of FY 2020-21 due to COVID-19 impacts. Staff is continuing to look for ways to minimize the impacts and maintain the fund balance above policy.
Citizen Input/Board Review:
The City of Keller Finance Committee reviewed and approved the proposed policy revisions at their meeting on August 4, 2020.
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.