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Amendments to the Finance Policies Manual; Resolution No. 26-42
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SUBJECT
recommendation
Adopt Resolution No. 26-42, approving the review of the NTMWD Investment Policy and Strategy Statement and amendments to the Finance Policies Manual within the following sections:
• Fund Balance Policy
• Retiree Health Insurance Program
• Water Variable Cost Rebate Policy
• Procurement Policy
• Renumbering and minor edits throughout
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PURPOSE
The Public Funds Investment Act (PFIA) of Texas requires the NTMWD Board of Directors to annually review the investment policy and investment strategy. Amendments to the Finance Policy Manual are needed to reflect recommendations of best practices, provide clarification, and make minor corrections throughout.
RECOMMENDATION
The Executive Director and NTMWD staff recommend the Board of Directors adopt the Finance Policies Manual and Resolution No. 26-42, approving NTMWD’s Finance Policies Manual review and amendments.
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Committee: |
This item was reviewed with the Finance Committee on July 8, 2026, and with the Policy Committee on August 12, 2026. The Finance and Policy Committees recommend the adoption of the Finance Policies Manual |
DRIVER(S) FOR THIS PROJECT
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Strategic Objective: |
2.1 Efficient Business Practices 2.3 Rigorous Financial Management |
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☒ Regulatory Compliance |
☐ Asset Condition |
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☐ Capacity |
☐ Redundancy/Resiliency |
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☐ Relocation or External Requests |
☐ Operational Efficiency |
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☐ Safety |
☒ Administrative |
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☒ Policy |
☐ Other _____________ |
BACKGROUND
• In April 2016, the Board Policies Manual combined many existing Administration and Finance- related policies into the Administration and Finance Polices Manual, which was adopted by the Board of Directors.
• In September 2023, the NTMWD Administration and Finance Policies Manual was split into the NTMWD Finance Policies Manual and the Administration Policies Manual.
At the September 9, 2026 meeting, the Finance Committee reviewed proposed amendments. The following is a summary of these amendments:
• Section 2 - Fund Balance Policy
o Excess operating funds in each system may be transferred to that system’s Debt Service Reserve Fund.
• Section 5 - Retiree Health Insurance Program (renamed)
o Transfer investment oversight responsibilities from the Finance Committee to the Retirement Plan Committee.
o Designate program administration responsibility with the ED/GM.
• Section 6 - Water Variable Cost Rebate Policy
o Policy moved to the Board Policy Manual (No changes to the policy).
• Section 6 - Procurement Policy (renumbered)
o Amend District executives’ contract signature by updating the thresholds for expenditures within the annual operating budget approved by the Board.
o Executive Director signature authority for all contracts of $250,000 and above.
o Assistant General Manager signature authority for contracts up to $249,999.99.
o Director signature authority for contracts up to $49,999.99.
o Operating expenditures of $100,000 and above and construction expenditures of $25,000 and above will be facilitated through the procurement department.
o Amendments to the use of cooperative purchasing to require competition.
o Clarifications to the general exemptions and to exempt all utilities from competitive procurement.
In addition to the aforementioned amendments, the Board action affirms the Investment Policy and Investment Strategy included as Exhibit A in the Finance Policies Manual. No changes are proposed. Copies of the redlined Finance Policies Manual and a clean version of the proposed Finance Policies Manual as well as Resolution No. 26-42 are attached.
FUNDING
N/A