Fair Oaks Ranch MDD posts year-end surplus; board reaffirms investment policy

The Fair Oaks Ranch Municipal Development District reported preliminary fiscal-year results to the board on Oct. 8 showing revenues above budget and a boost to the district's fund balance.

Staff reported the district collected approximately $450,000 in sales-tax receipts through September, and because sales tax is received two months in arrears staff accrued an additional $78,000 for August and September collections, bringing year-to-date sales-tax receipts to $528,000. Interest earnings for the year totaled $159,514, for total revenues of $687,514, roughly $83,000 above budget. Expenses for the fiscal year totaled $266,788, including the accrual of a grant award to the city, resulting in a net increase of $420,726 to the district fund balance and raising the fund balance to approximately $3.75 million.

Staff told the board that nearly all investments are held in local government investment pools (TexPool and TexasCLASS) with a smaller operating balance at Frost Bank. As of Sept. 30 the combined investment balance was approximately $3.9 million with yields averaging just over 4.3%.

Later in the meeting the board considered and approved a resolution reaffirming the district's investment policy to satisfy the Public Funds Investment Act's annual review requirement. Staff said the board had made comprehensive updates to the policy in October 2024 and recommended no changes at this time; the resolution records that the policy was reviewed and remains in force. Board members asked about the list of authorized brokers included in the policy; staff said listing a broker does not obligate the district to use them but authorizes their use if needed.

No changes were made to the investment policy; the resolution passed by voice vote.