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Windcrest EDC votes to move $1 million into Lone Star corporate overnight fund pending legal review
Summary
The Windcrest Economic Development Corporation unanimously authorized a pending-legal review transfer of $1,000,000 from its Frost Bank account into the First Public Lone Star corporate overnight fund to seek higher short-term returns while retaining same‑day liquidity.
The Windcrest Economic Development Corporation board voted unanimously to transfer $1,000,000 from its Frost Bank account into the First Public Lone Star corporate overnight fund, pending legal review.
Board members said the move is intended to increase short-term investment yield while preserving liquidity. The board’s financial report showed a cash position of about $1,256,000 and total assets near $1,402,000 through February. Presenters cited current yields in the Lone Star corporate overnight fund near roughly 4.4–4.7% in recent months, compared with the city depository arrangement at roughly 3.15% (based on current T‑bill-linked pricing), and emphasized that funds could be withdrawn the same day.
The motion was initially made to transfer $750,000 and was then amended on the floor to $1,000,000 before the board approved the amended amount. Board members discussed keeping a minimum operating balance in Frost to cover monthly outflows; one board member recommended retaining at least $200,000 on hand for normal activity. Legal review was explicitly noted as a condition before staff carries out the transfer to confirm compliance with the EDC’s adopted investment policy and state finance rules.
The board’s financial presentation also noted operating details that informed the decision: February expenditures totaled $31,102 and year‑to‑date expenditures were about $165,010; net revenue was reported at a negative $10,003.49 so far for the fiscal year because not all months of sales tax had been capitalized yet. Staff flagged some overbudget items (retirement match, travel, legal, computer maintenance/software) that will be revisited at the six‑month review.
Board members said they had discussed mechanics with First Public and that the corporate overnight fund is designed for local governments and school districts to seek higher yield with liquidity. Staff will complete the requested legal and policy review and, if cleared, execute the transfer.
No public comment was recorded on the investment transfer motion.
