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Council approves participation in TexStar to better manage short-term funds
Summary
City manager and Hilltop Securities briefed council on moving certain city funds into TexStar for greater liquidity and yield; council adopted Resolution R-2026-006 and authorized reinvestment steps including a CD transfer.
Gun Barrel City council voted to participate in the Texas Short Term Asset Reserve Program (TexStar) to gain better liquidity and returns on certain city funds.
City Manager (Dr. Smith) reviewed recent investment-policy decisions and said staff had presented options from Hilltop Securities. The presentation included recent 2026 daily and monthly TexStar rates; the city intends to move selected revenue accounts — including certain special funds and a portion of a 90-day emergency fund — to more liquid, higher-yielding options. "This is a great opportunity for the city and I've said over and over and over to allow our money to work better for us," Dr. Smith told council.
Council later voted to adopt Resolution R-2026-006 approving application for TexStar participation. Separately, council approved closing a Prosperity Bank certificate of deposit (ending 1007) and transferring $163,164.39 to the general fund to be reinvested per the new strategy.
The council's actions authorize staff to proceed with the investment steps; any specific allocations, rates and custodial details will be handled by staff and financial advisors in accordance with the city's investment policy.
