Stafford MSD renews bank, audit and insurance contracts, approves recapture option and delegates tax calculations to CFO

At its Aug. 20 meeting the Stafford Municipal School District Board of Trustees approved multiple finance-related items: a two-year renewal with Frost Bank for depository services, renewal of the district’s external audit engagement, several insurance renewals, approval of recapture payments through the attendance-credit purchase option, and delegation of authority to the CFO to calculate the district’s no-new-revenue and voter-approved tax rates.

Depository services: The board approved renewal of the Frost Bank depository contract from Sept. 1, 2025 through Aug. 31, 2027. District staff said Frost provides depository and payroll services with minimal fees and that moving to another bank would be disruptive because accounts are integrated into payroll and accounts-payable systems. The district noted Regions Bank has provided other services (tax anticipation notes) and that both banks will participate in future borrowing processes. Board discussion referenced Texas Education Agency (TEA) rules requiring depository contracts on a two-year cycle. Motion carried, 7-0.

Audit services: The board approved a one-year renewal with Whitley Penn (audit firm) for the fiscal year ending Aug. 31, 2025 and requested that administration issue an RFQ/RFP for auditors before the current extension expires so the board can consider rotating auditors in a future cycle. Motion carried, 7-0.

Insurance renewals: The board approved renewal of property and casualty insurance with McGriff for 09/01/2025–08/31/2026, noting a slight premium decrease to $974,375 and a reduced named-storm deductible (from 7.5% to 3%). The board also approved renewal with TASB Risk Management for vehicle, cyber and school-liability coverage at about $68,330. Both motions carried, 7-0.

Attendance credits (recapture): The board authorized the purchase of attendance credits under “Option 3” to remit excess revenue (recapture) to the state. Administration explained the action is procedural to comply with state recapture rules and will not itself increase local obligations beyond the recapture requirement. Motion carried, 7-0.

Property tax rates: Trustees delegated authority to the CFO to calculate the no-new-revenue tax rate and the voter-approved tax rate and to submit the calculated rates to TEA as required by law. Discussion clarified the deadline aligns to fiscal-year timelines; motion carried, 7-0.

Motions and votes: Each item carried on a 7-0 vote. For the audit renewal, trustees additionally requested the CFO present an RFQ plan next year to allow the board to solicit proposals for audit services before the next contract cycle.

Administration said the items are time-sensitive to align with fiscal-year start dates and statutory filing deadlines and that staff will return with required paperwork and RFQ timelines where directed by the board.