Page 26 - CityofColleyvilleFY25AdoptedBudget

The City's history of clean audit opinions re ects its strong commitment to nancial transparency and responsible
management. In the event of audit ndings, management, particularly the Finance Director, is responsible for
responding and implementing corrective actions.

Deposits and Investment Policies
The City's investment activities are governed by state statutes and the City's written Investment Policy and Strategy. The
primary objectives, in compliance with state law, are to preserve capital, provide liquidity, and maximize earnings while
prioritizing capital preservation and liquidity. All City funds are deposited in FDIC-insured banks within the City. Deposits
held at authorized depositories are fully collateralized by securities, held by an independent third party, to ensure the
security of City funds.

Interfund Transfers
Interfund charges are applied based on material costs, and only when deemed substantial. These charges are
determined case-by-case to ensure operational ef ciency.

Pension Plans and Other Long-term Liabilities
To ensure future nancial stability and prevent undue burden on future generations, the City fully funds pension and
other long-term obligations on an annual basis. The City participates in the Texas Municipal Retirement System (TMRS)
and ensures monthly contributions to meet the actuarially required amount. This proactive approach ensures that the
City meets its long-term commitments without shifting liabilities to future budgets.

Number of Funds
The City aims to maintain the minimum number of funds necessary to account for its nancial activities. Resources are
allocated to individual funds based on the speci c purposes for which they are designated and the means of controlling
expenditures. Where feasible, activities are separated into departments within a fund rather than establishing new funds,
ensuring streamlined and ef cient nancial management.

City of Colleyville | Budget Book 2025 Page 26