Harlingen commission authorizes participation in TexPool Prime investment option
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Summary
The Harlingen City Commission unanimously approved joining TexPool Prime, a higher-yield investment option that includes high-grade commercial paper; staff said the fund remains liquid and will allow weekly transfers to manage city cash needs.
The Harlingen City Commission on Nov. 19 authorized the city to participate in TexPool Prime, an investment option city finance staff said offers higher yields by including high-grade commercial paper alongside pool investments.
Robert, the city finance official who explained the proposal, said TexPool Prime “is just a separate investment option within the TexPool investment structure” and that the fund is designed to diversify the city’s portfolio while complying with the Public Funds Investment Act. He told commissioners funds can be moved in and out weekly and that the pool maintains liquidity while offering a slightly higher yield.
The finance official responded to concerns about risk by saying the commercial paper in TexPool Prime is high grade and that the pool is valued at a net asset value of $1.00. “It's very similar to TexPool, except it also has commercial paper, which they consider,” he said.
Commissioners asked about oversight and how often staff moves funds between accounts; staff said the city conducts regular cash-requirements analyses (weekly or when large payments are scheduled) and that Hilltop Securities serves as the city’s financial adviser. The item was placed before the commission because the city lacked prior authorization to use the TexPool Prime fund.
A motion to approve the participation agreement carried unanimously. The commission did not identify any dissenting votes during the roll call.
The approval allows staff to use TexPool Prime as an investment vehicle subject to existing public-funds rules and the oversight processes staff described. Any future transfers or material changes to the investment strategy would be subject to further review by the commission.