Conroe ISD reports $220.5 million general fund, committee backs investment policy for full board

Chairman Dungan called the Conroe Independent School District Audit & Investment Committee to order and heard the district's annual investment report from finance staff Miss Westrup, who said the district's general fund portfolio totaled $220,500,000 and that the combined portfolio exceeded $1,000,000,000. "Our investment strategy has remained unchanged, and the primary focus is always on the safety of principal," Westrup said. She told the committee the district invests operating funds in state investment pools, Woodforest National Bank, commercial paper and short-term government securities of one year or less and that the district has $50,000,000 of unassigned general fund balance placed with HUB Investment Partners in a 36-month ladder. The combined portfolio had a weighted average maturity of 35 days and a yield of 4.42%, Westrup said, noting the portfolio continued to outperform the 90-day T-bill benchmark. The committee then considered sending the district's investment policy to the full board for approval, noting the staff recommendation cited compliance with the Texas Government Code on public investments. A motion to recommend the policy to the full board passed without opposition. "At this point with time, we would like for your recommendation to take the investment policy to the full board for its approval," Westrup had told members during the presentation. Why this matters: School district investment policy and portfolio performance affect liquidity available for operations and capital planning. The committee's recommendation sends the policy to the board for a formal vote at the next regular meeting. Details and background: The general fund composition for the five-year view included $84,400,000 in money market funds (about 38.3% of the general fund), $81,200,000 in state pools (36.9%) and $34,300,000 in treasuries (15.5%). Westrup reported interest revenue in the general fund for 2025 of $10,800,000. The district's $50,000,000 placed with HUB Investment Partners represents unassigned fund balance staff determined was available for the 36-month ladder; staff said those investments are primarily FDIC-insured certificates of deposit. Discussion points: Committee members asked about year-to-year variations in portfolio yield and how the 36-month ladder affected returns as market rates moved. Westrup explained laddered investments locked in higher rates during earlier increases and continue to yield benefits while short-term rates have moved down. The committee also reviewed the benchmark comparison to the 90-day T-bill and asked staff to include the resolutions and standard investment program documents with the item when it goes to the full board. Formal action: The committee voted to forward the investment policy and related resolutions to the full board for approval; the motion carried with no recorded opposition. No amendments to the policy were recorded in committee discussion. What's next: The investment policy and the related resolutions will be presented to the full Conroe ISD Board at next week's meeting for final action.