The Kennedale City Council on Oct. 21 approved a resolution to participate in the Local Government Investment Cooperative (LOGIC), a pooled investment product managed by Hilltop Securities and JPMorgan, with the motion passing 3-0 and one abstention.

Council members and staff said the move gives the city an option offering marginally higher yield while maintaining daily liquidity. Hilltop Securities representative Lance Flores described LOGIC as a "prime pool" that, unlike government-only pools, may invest in highly rated commercial paper as well as treasuries and repurchase agreements. "As rates are coming down, LOGIC has a good option to still maintain your liquidity, your diversification, but pick up a little bit higher yield," Flores told the council.

City staff told the council the change would be a reallocation among local government investment pools rather than a new outlay of funds. The staff presentation said the city would shift roughly $14,500,000 from the city's current pool into LOGIC if the council approved the resolution. At the time of the presentation staff compared headline yields: LOGIC at about 4.2% versus TexStar at about 4.07% (figures provided by the presenter and staff during the meeting).

Staff noted the pool is authorized under Texas public funds investment rules and that joining requires a governing-body resolution; Hilltop indicated there is no account minimum and participants retain daily liquidity. The council discussion included a brief financial overview and opportunity for questions; no amendments to the staff recommendation were made.

The motion to approve the application to participate passed with three votes in favor, zero opposed and one abstention. The motion and subsequent discussion emphasized that the city would reallocate existing investment balances into LOGIC rather than transfer new operating funds.

Moving forward, staff said they would complete enrollment paperwork and execute transfers as appropriate under the city's investment policy.