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Commission hears quarterly investment report; commissioners ask for details on TexPool holdings
Summary
City finance presented a quarterly investment report showing portfolio balances of about $198 million and that 84.54% of funds were in TexPool; commissioners asked staff to provide a breakdown of assets held in the pool amid concerns raised about opaque holdings in some government investment pools.
The Texas City finance department on June 17 presented its quarterly investment report for the period ending March 31, 2026, and commissioners asked for further disclosure about the makeup of the city's holdings in a government investment pool.
Finance staff member Laura Boyd said the city contracts with Hilltop Securities Asset Management for investment advisory services and read the portfolio totals into the record: book value at the beginning of the period ~$195,963,914 and at period end ~$198,093,978. Market values were similar; accrued interest totaled about $10,763.89. Boyd said the portfolio's yield to maturity was approximately 3.652% and the days to final maturity about 44 days, reflecting a highly liquid portfolio.
She described the asset allocation breakdown: about 84.54% of the portfolio was invested in a government investment pool called TexPool, about 6.95% in bank deposits (Texas First Bank High Yield Money Market account), roughly 5% in agency securities (Federal Home Loan Bank and FHLMC), 2.46% in commercial paper and about 1% in U.S. Treasury bills.
One commissioner cited high-profile media cases in which government investment pools were later revealed to hold unexpected or high-risk assets and asked staff for a specific disclosure of the securities or asset types held inside the pool. "I would like to know more about what is in that pool if we could," the commissioner said. Boyd replied, "I'll have to get back with you on that because when I was here before, we were not involved in the investment pools. So, I can get you that information," and said the state of Texas reduces the likelihood of the specific sanctions-related example the commissioner cited.
The report referenced compliance with the city's investment policy and the Texas Public Funds Investment Act. Commissioners did not take further action at the meeting beyond asking staff to provide a detailed breakdown of TexPool holdings and to follow up with the commission.
What's next: Finance staff will supply the requested information about the pool holdings for review at a future meeting or in supplemental materials.
