Van Alstyne ended its fiscal year with $47.3 million invested, and every dollar of it was in a single money market account at one bank, according to the quarterly investment report in Tuesday's City Council packet.
Finance staff want to change that. The council will consider joining two government investment pools, LOGIC and TexSTAR, which the city's finance department says would pay more than the city now earns.
What the city holds
The report, dated Sept. 30, 2026, lists $47,311,264.84 in a SouthState Bank money market account earning 3.68%. Finance Director Sherry Staber and Assistant City Manager Jennifer Gould, the city's two investment officers, signed it and stated that the city complies with its investment policy and the state's Public Funds Investment Act.
Most of the money sits in capital funds. The report puts 74% of the balance in capital funds for buildings and infrastructure and 10% in the general fund, with smaller shares for debt service, restricted funds and the water, sewer and sanitation utility.
A December 2025 snapshot attached to the city's investment policy showed the same account holding about $53.1 million at 3.84%.
The proposal
In memos for both items, Staber wrote that SouthState is currently the only authorized depository for city money. LOGIC and TexSTAR meet the criteria in the city's investment policy, she wrote, and both offer higher rates than the bank.
The pools would hold money the city does not need right away for operations, and the city could get funds back within 24 hours of asking for a transfer. Both pools are run through Hilltop Securities, according to the memos.
