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MDD hears quarterly investment report projecting roughly $4.4 million fund balance
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Summary
The MDD board reviewed its quarterly investment report for the period ending March 31, hearing projections for an ending fund balance of about $4.4 million, $50,000 reserved for operations and roughly $4.359 million available for projects; the board endorsed maintaining a conservative investment stance.
The Municipal Development District (MDD) board on its April regular meeting heard a quarterly financial and investment report showing a projected ending fund balance of about $4.4 million for the fiscal year.
The district's finance presenter said, "Approximately $205,000 in sales tax, and we accrued an additional $102,000 for February and March sales," adding that year‑to‑date interest earnings totaled about $75,000 and year‑to‑date expenditures were just over $38,000. The presenter said the total investment portfolio was $4,005,105 as of March 31, held in pooled accounts including Texas CLASS and a small balance at Frost Bank.
Why it matters: The projection leaves the district funds available to support future MDD projects while preserving operations reserves. The presenter said the projected ending fund balance is approximately $4,400,000, with $50,000 maintained for operations and $4,359,000 identified as available for approved projects.
Treasurer Mike Lovelace urged the board to remain conservative on investment moves, noting the tradeoffs between yield and liquidity. "A 1% rate differential on 1,000,000 dollars for a year is $10,000," Lovelace said, arguing that modest yield increases would not materially change the district's capacity and validating the district's current approach.
Board members asked questions about uncollected sales-tax accruals and interest-rate trends. The presenter indicated about $102,000 remained uncollected by the state comptroller for February and March receipts and that short‑term interest rates were lower than earlier in the fiscal year, although pooled investments remained competitive with market benchmarks.
Administrative note: The board approved the previous meeting minutes as part of the consent agenda at the start of the meeting; the presenter said the next quarterly report will be provided in the July agenda packet and that the treasurer will present in July if the presenter is not available.
What’s next: Staff will continue to monitor collections and investment performance and will incorporate updated projections in future quarterly packets.
