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Uvalde CISD board accepts TXN Bank bid after debate over community ties and rates
Summary
After a lengthy debate over community contributions and interest earnings, the board accepted the RFP committee's highest-ranked response and awarded the district depository contract to TXN Bank.
The Uvalde Consolidated Independent School District board voted to accept the district’s request‑for‑proposals results and award the depository contract to TXN Bank after trustees debated whether to prioritize scoring criteria or long‑standing local relationships.
Administration told the board that state law (Texas Education Code subchapter G) and TEA guidance require the district to solicit proposals for depository services; the district received two responses, from First State Bank of Uvalde and TXN Bank. A committee evaluated the proposals against the RFP criteria and ranked TXN Bank as the highest scorer; administration recommended TXN as the award.
Staff said TXN’s interest rates and fee schedule would produce higher interest earnings for the district on deposit balances. Administration provided a comparative example using $1,000,000 in deposits to illustrate differences in earnings.
Some trustees and members of the public argued the board should weigh the long‑standing community presence and local donations of First State Bank. Public commenters Simon Ortiz and Diana Olvedo Caru urged trustees to consider community involvement and longstanding local support when choosing a depository. Trustees also discussed the banks’ relative sizes, collateralization and ability to support the district during cash‑flow needs.
A motion to award the depository contract to First State Bank failed; a subsequent motion to accept the committee’s recommendation and accept TXN Bank’s proposal passed with a recorded majority vote. Administration told the board that district funds are collateralized under the Public Funds Investment Act regardless of bank choice and that some funds are placed in external pools for higher yields.
The board did not set additional conditions or amendments to the contract at the meeting. Miss Colas and district staff who managed the RFP process said the scoring followed the RFP criteria posted on TEA’s website and that the committee used categories such as cost of services, funds availability schedule, automated services, collateralization and fraud prevention to score proposals.
Trustees directed staff to finalize the award paperwork and implement the change of depository services effective as allowed by the contract timeline.
