Burleson ISD trustees approve investment manager, join Texas Class pool, accelerate bond payoffs and update policies

The Burleson Independent School District Board of Trustees on April 14 approved a slate of financial and policy actions, including awarding an investment management contract to TCG Group Holdings, authorizing participation in the Texas Cooperative Liquid Assets Security Trust (Texas Class), approving a defeasance and redemption plan expected to save about $13 million, adopting TASB-recommended policy updates (update 1-24) and deleting policy EIAB, and approving the district's instructional materials/TEKS certification for the 2025-26 school year. The board also authorized the board president to approve new hires between the meeting and the next regular meeting in May, with ratification planned at the May meeting.

Why it matters: The actions together expand the district's investment options (adding a new investment manager and another liquidity pool), accelerate long-term debt retirement that the district projects will reduce interest costs and free future bond capacity, and finalize yearly instructional-materials certification required by the Texas Education Code. The board cited conservative investment practices, vendor accessibility, and recent credit-rating strength as reasons to act now.

Investment manager award: The board voted to approve an award to TCG Group Holdings for Investment Management Services (RFQ 242503). District staff said TCG was selected because the firm has school-district experience, a Texas-based executive vice president for easier access, a conservative strategy focused on principal preservation, reporting capabilities (weighted average maturity, market value/book value reporting), fee terms that were lower or negotiable compared with other respondents, and a willingness not to assess fees until the district places funds with them. The board motion to approve the award passed without opposition.

Pool participation: The board approved a resolution authorizing participation in the Texas Cooperative Liquid Assets Security Trust (commonly called Texas Class). Staff described Texas Class as another short-term pool that works specifically with school districts, offers training and district-facing staff, and pilots a short-term term product for higher yields when appropriate. The motion passed with no opposition.

Debt defeasance and savings: District financial staff and the district's financial advisor outlined a plan to use fund balance to defease the outstanding Series 2020 taxable refunding bond in full and to shorten the payoff of the outstanding Series 2016 refunding bond by roughly two-and-a-half years. Staff estimated combined savings of about $13,000,000 from these actions. The board approved the resolution to effect the defeasance and to delegate implementation authority to district officials. Staff also noted Moody's recently upgraded the district's underlying rating from Aa3 to Aa2.

Policy and instructional materials: The board approved TASB-recommended policy update 1-24 (including several clarifying edits across multiple policies) and the deletion of policy EIAB. The board also approved the district's instructional materials allotment and TEKS certification for the 2025-26 school year, confirming that recommended materials are on the state-approved list.

Hiring authority from closed session: Following closed session discussion of personnel and other matters, the board in open session approved a recommendation to grant the board president authority to approve new hires between the April meeting and the next regular meeting in May; the board will ratify hires at the May meeting. The motion passed with no opposition.

Votes at a glance: - Grant board president authority to approve hires between April and May meetings — approved (unanimous; ratification at May meeting). - Award Investment Management Services (RFQ 242503) to TCG Group Holdings — approved (unanimous). - Authorize participation in Texas Cooperative Liquid Assets Security Trust (Texas Class) — approved (unanimous). - Approve resolution for defeasance and call for redemption of certain district obligations (shorten Series 2016 payoff; defease Series 2020) — approved (unanimous); staff estimate $13,000,000 in savings. - Approve TASB Policy Update 1-24 and deletion of policy EIAB — approved (unanimous). - Approve instructional materials allotment and TEKS certification for 2025-26 — approved (unanimous). - Approve consent agenda — approved (unanimous).

Discussion vs. decision: Board discussion included staff explanations of vendor selection criteria for the investment manager (experience with districts, Texas-based executive, reporting, fee negotiation), the structure and benefits of adding Texas Class to the district's pool mix, and the mechanics and projected savings of the bond defeasance. Formal board decisions were reflected in the motions and votes listed above; staff stated that some implementation steps (investing with TCG, completing defeasance paperwork) will occur after execution of the approved motions and may require additional administrative steps.

Looking ahead: Staff said no fees to TCG will be assessed until the district moves funds into investments with the firm; the defeasance work will begin once paperwork is signed. The board is scheduled to ratify any hires approved by the board president at its May meeting.