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Freestone County hears investment-pool pitch; investment policy tabled
Summary
A representative from Motal Securities described public-sector investment pools TexSTAR and TexPool and recommended considering TexSTAR as an option. The court reviewed quarterly reports, tabled an update to the county's investment policy and approved a two-year bank depository contract starting June 1, 2025.
A representative of Motal Securities told the Freestone County Commissioners Court that local government investment pools operate "like a high yield savings account that's only counties, cities, and school districts are allowed to utilize them," and urged the court to consider adding TexSTAR as an investment option.
The presentation, delivered during the court's general business, explained three principles the speaker said are central to pools: preservation of capital, daily liquidity and typically higher yields than commercial bank accounts. The representative cited the Public Fund Investment Act of Texas when describing legal parameters for municipal investments and said TexSTAR and TexPool hold mainly U.S. Treasuries, agencies and repurchase agreements.
The court reviewed the county's quarter and monthly investment reports that accompany the audit packet and discussed an update to the county's investment policy. A motion to table the revised investment policy was made and seconded; the court voted to table the policy for further review.
Separately, the court approved a request to solicit bank depository services for a two-year contract from June 1, 2025, through May 30, 2027, with an option for a single two-year extension. County staff said the procurement schedule follows prior practice of soliciting banking services every contract cycle.
The Motal Securities representative told commissioners TexSTAR typically tracks the 90-day Treasury bill and that pool yields change daily but usually by only a few basis points. The representative said liquidity is same-day if orders are placed before 4:00 p.m. Central and noted advantages such as no wire or ACH fees and no account minimums.
Court members did not take further immediate action on adopting TexSTAR or TexPool; the policy update was tabled and will return for later consideration.
The packet materials, including the auditor's and treasurer's reports and the quarter 1 investment report, remain posted on the county website as part of the public record.
