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Navasota updates investment and purchasing policies to reflect state law and tighten controls
Summary
Council reviewed updates that name the city manager and finance director as investment officers, formalize PFIA compliance and quarterly reporting, and revise purchasing thresholds to reflect a recent state-law change raising the competitive-bidding trigger to $100,000.
City staff told the council that two policy updates—investment and purchasing—are intended to modernize governance and align city practice with current Texas law.
On investments, staff emphasized adherence to the Texas Public Funds Investment Act, designated the city manager and finance director as investment officers, and recommended continued reliance on state investment pools for liquidity and yield. The update also shortens the list of authorized brokers and codifies quarterly reporting and an annual policy review.
On procurement, staff and legal counsel explained that the 2025 state legislative changes raised the competitive-procurement threshold from $50,000 to $100,000. "The major change was increasing the amount at which the city has to go out for competitive bids ... In 2025 the legislature changed that to $100,000," counsel said during the presentation. The revised purchasing policy lays out an approval ladder (card-level purchases, department director, finance director, city manager, council), clarifies when PO issuance and competitive procedures are required, tightens PECARD reconciliation timelines, and adds contract-administration and bond requirements at higher thresholds.
Staff described the changes as modernization rather than a change in investment strategy. The policies also contain provisions intended to improve audit readiness and incorporate best practices from the Government Finance Officers Association.
Council did not vote on the policies during the workshop; staff said the updates are intended to reflect current law and improve internal controls and that they will follow up with final adoption steps.
