CIDC reviews August treasury report and Q3 investment report; sales tax near budget and bond principal noted

Board finance staff presented the Conroe Industrial Development Corporation’s August treasury report and the third-quarter investment report at the Sept. 24 meeting.

The treasurer’s report for August showed sales tax revenue of $1,707,984 for the month and year-to-date sales tax receipts of $16,000,558.79, which the presenter said was about 98% of the annual budget; staff said an additional roughly $311,000 would meet the annual budget target. The report listed an ending fund balance of $39,410,633 and a beginning fund balance of $40,322,424.

Staff noted a significant August expenditure month because of a sales-tax revenue bond debt service payment. The presenter said the corporation made a principal payment on the sales-tax revenue bond during the month and that remaining principal was about $59 million.

The third-quarter investment report, covering April 1 through June 30, 2025, showed that market value declined from about $41.8 million to $39.3 million and that the corporation earned $449,000 in interest for the quarter. The reported yield to maturity was 4.32%, down 0.04 percentage points from the previous quarter; staff said the benchmark 6-month Treasury yield was 4.28% at report time and noted a recent 25-basis-point rate cut would likely push yields lower in subsequent reports.

Staff told the board that the corporation’s investments were essentially held in liquid pools and that all investments comply with the Public Funds Investment Act and the city’s investment policy.

The board accepted the treasurer’s report and the third-quarter investment report by voice vote; all present voted in favor.