Harlingen commission authorizes participation in TexPool Prime to boost yield on city funds

The Harlingen City Commission voted unanimously to authorize participation in TexPool Prime, an investment option within the TexPool structure that includes high‑grade commercial paper and a slightly higher yield than the city’s current accounts.

City staff and finance advisers told the commission the option remains liquid and is intended to diversify the city's investment portfolio while complying with the Public Funds Investment Act. Staff said the city performs a weekly cash requirements analysis and can move funds in and out of TexPool on a regular schedule; Hilltop Securities, the city's financial advisor, reviewed the option and recommended it.

Commissioners asked for clarifications on risk, oversight and fees. One commissioner summarized the staff explanation, saying the fund holds short‑term, high‑quality paper and is managed closely: “They are valued at net asset value of a dollar. And they are backed by the government,” a commissioner observed during debate, noting monitoring occurs frequently. Staff and the city manager said an investment officer and deputy monitor the accounts, and the city regularly sweeps funds to maximize yields.

The measure was introduced by staff, moved and seconded on the floor and carried unanimously. The authorization gives staff the ability to place city funds in TexPool Prime as an option for municipal cash management; the commission did not approve a specific dollar amount for transfer in this action.

The commission's vote authorizes use of TexPool Prime under existing investment oversight procedures and directs staff to manage authorized funds according to the city's cash‑management practices.

The item is expected to be reflected in future financial reports and will be subject to the city's existing monitoring and reporting procedures.