ESBD_544703_1785505708926_RFQ - Investment Services _ FINAL.pdf

16318 Great Oaks Drive Round Rock, Texas 78681

(512) 255-7871 Fax (512) 255-0332 www.bcmud.org

REQUEST FOR QUALIFICATIONS (RFQ)

Public Investment Advisory Services PFIA-Compliant

Brushy Creek MUD Round Rock, Texas

Issue Date: July 31, 2026

Contact: Monica Henderson Accounting Manager

M.Henderson@bcmud.org 512-255-7871 Ext. 428

Request for Qualification/Contract for Consideration Questionnaire

Due Date August 14, 2026

Brushy Creek Municipal Utility District (BCMUD or the District) is a local government entity originally established as Williamson County MUD No. 2 on October 27, 1977, and is governed by a five-member Board of Directors elected by District residents. BCMUD provides retail water, wastewater, and drainage services and manages parks, recreation facilities, and community programs. The

District’s Board, leadership, and staff are committed to maintaining the standards embodied in “The

Brushy Creek Life.”

The District is committed to transparency and strong financial oversight. The Finance Committee and Board of Directors are actively engaged in significant financial matters, including vendor selection and contract approval.

As part of its ongoing financial planning, including preparation for upcoming bond programs and related funding initiatives, the District is conducting a comprehensive review of investment advisory services.

This review will include evaluating the current agreement and considering the qualifications of additional firms for potential future services.

BCMUD invites qualified firms to submit a Statement of Qualifications and proposed contract to provide

Investment Advisory Services in full compliance with the Texas Public Funds Investment Act (PFIA), Texas

Government Code Chapter 2256. The District seeks a firm that will act in a fiduciary capacity and provide independent, objective advice to support prudent management of public funds, with emphasis on safety, liquidity, and yield, in that order of priority.

Responses to this RFQ will be used to evaluate and select the firm best suited to support the District’s investment objectives and fiduciary responsibilities.

Please submit responses to the questions included in this request by August 14, 2026, by email:

To: Monica Henderson M.Henderson@bcmud.org

We appreciate your participation and look forward to learning more about what your firm can offer.

Sincerely, Monica Henderson Accounting Manager 512-255-7871 Ext. 428

1. Firm Background and Qualifications

Provide a brief overview of the firm, including history, ownership structure, office locations, and staffing levels.

Describe the firm’s MUD and Texas public entity investment advisory experience, including approximate portfolio sizes and types of funds served.

Identify the dedicated advisory and support team proposed for the District, including primary contacts and backup coverage.

2. Scope of Services

The selected firm will provide ongoing support and analysis for evaluating investment opportunities in context of operating cash flow and prudent return on investment, including the following:

A. Investment Strategy & Portfolio Management

Develop and recommend investment strategies consistent with PFIA requirements and

District cash flow needs, prioritizing safety, liquidity, and appropriate yield.

Provide guidance on allowable investments under PFIA, such as U.S. Treasuries, agencies, pools, and certificates of deposit.

Monitor portfolio performance, including interest rate risk and diversification, and provide regular portfolio reviews with recommendations and supporting documentation.

Advise on investment of bond proceeds and construction funds, including cash flow planning, draw schedules, maturity alignment, principal preservation, and arbitrage compliance considerations.

B. PFIA Compliance Support

Ensure all investment activities comply with Texas Government Code Chapter 2256.

Assist with:

o Annual investment policy review and updates o Investment strategies required under PFIA

Provide compliance checklists and reporting aligned with:

o Section 2256.005 (Investment Policy) o Section 2256.023 (Internal Controls) o Annual policy review certification

C. Reporting (PFIA-Compliant)

Provide quarterly investment reports that meet PFIA requirements, including Section 2256.023, and include:

Book and market value

Maturity distribution

Weighted average yield

Compliance with policy and PFIA

Listing of individual securities

Statement of compliance signed by the Investment Officer

D. Training (PFIA Requirements)

Provide PFIA-approved training for Investment Officers and staff to meet:

o Initial training requirements o Continuing education requirements, including 10 hours every two years, or as otherwise applicable

Provide documentation for audit compliance

E. Economic & Market Analysis

Provide:

o Interest rate forecasts o Economic outlook reports o Investment recommendations based on market conditions

F. Cash Flow & Liquidity Analysis

Assist in projecting cash flow needs to ensure adequate liquidity.

Align investment maturities with operational needs.

G. Audit & Compliance Assistance

Support annual financial audits related to investments.

Assist in responding to auditor questions regarding PFIA compliance.

Attend Board or Finance Committee meetings upon request to present investment updates, compliance status, and market conditions.

H. Cybersecurity, Business Continuity & Disaster Recovery

Describe cybersecurity measures used to protect District information, including access controls, data protection practices, incident response, and vendor risk management.

Provide the firm’s business continuity and disaster recovery approach to ensure uninterrupted service, timely reporting, and continuity of advisory support during operational disruptions or disasters.

3. Minimum Qualifications

Firms must demonstrate:

Registration as a Registered Investment Adviser (RIA) with:

o U.S. Securities and Exchange Commission (SEC) or o Texas State Securities Board

Demonstrated expertise in Texas PFIA compliance.

Minimum 10 years’ experience serving Texas public entities, with demonstrated experience serving municipal utility districts or similar special-purpose districts.

Experience providing PFIA-compliant reporting and training.

No material violations or regulatory sanctions, or full disclosure of any such matters.

Documented controls for cybersecurity, business continuity, and disaster recovery appropriate for public funds advisory services.

Ability to function as an independent advisor with no conflicts of interest.

4. Submission Requirements

A. Firm Overview

Legal name, headquarters, and Texas office presence

Ownership structure

Years of experience

B. Experience with Texas Public Entities

List of Texas public entity clients, including cities, MUDs, special districts, and similar entities

Experience with PFIA compliance and audits

Portfolio sizes managed

Specific experience with MUD portfolios, bond proceeds, construction fund investments, and arbitrage coordination.

C. Key Personnel

Dedicated advisors and support staff

Form ADV Part 2B o Certifications (CFA, CPA, etc.)

o Experience with PFIA training and compliance o Roles, relevant experience, availability, and backup staffing for the dedicated team.

D. PFIA Expertise

Description of firm’s approach to:

o PFIA compliance o Investment policy development o Internal controls o Arbitrage compliance monitoring o Investment approach outlining how the firm selects approved investments, balances safety, liquidity, and yield, matches maturities to District cash flows, and provides ongoing market-driven recommendations.

E. Reporting Capabilities

Sample PFIA-compliant quarterly investment report

Technology platforms used

Cybersecurity controls and technology platforms used to protect District information and support reporting continuity.

o Data breech notification process o Data loss prevention, response, and recovery procedures o Cybersecurity policy and related controls

F. Training Capabilities

Description of PFIA training programs

Certification to provide PFIA continuing education

G. Required Disclosures

Form ADV Part 2A o Fee structure, including whether fees are proposed as a flat fee or basis points.

o Any commissions o Third-party compensation o Potential conflicts of interest o Litigation and regulatory history o Conflict of interest disclosure statement o Disclosure of any lobbying activities, lobbying event participation, political contributions, or other activities that could create an actual or perceived conflict of interest with the District or its officials.

H. Value to the District

Explain how the firm provides value beyond routine investment transactions and reporting.

Provide three examples of measurable or practical value delivered to public entity clients.

For each example, identify the client type, challenge, service provided, and resulting benefit.

5. Evaluation Criteria

Reference

Criteria

Weight

4B Texas Public Entity Experience: Texas PFIA, MUD, bond proceeds, construction fund, and arbitrage experience 25%

4C Key Personnel: Qualifications and depth of dedicated personnel 20%

4D PFIA Expertise: Investment approach, ongoing support, and prudent investment recommendations

15%

4E Reporting Capabilities: Reporting, compliance, cybersecurity, and business continuity capabilities

20%

4G, 4H Required Disclosures/Value to the District: Board and

Finance Committee engagement, training, and communication

10%

2D, 2G Training/Audit & Compliance Assistance: Fees and demonstrated value, including three examples 10%

6. Timeline

Milestone Date

RFQ Issued 07.31.2026

Questions Due 08.07.2026

Responses Due 08.14.2026

Interviews (if needed)

08. 17–28. 2026

Selection 09.15.2026

Contract Start 01.01.2027

7. Submission Instructions

Submit electronically in PDF format

Deadline: August 14, 2026

Email submissions to:

Monica Henderson

Accounting Manager

Brushy Creek MUD m.henderson@bcmud.org

8. Terms & Conditions

The District reserves the right to reject any or all submissions.

This RFQ does not obligate the District to award a contract.

Firms must comply with all applicable Texas laws, including PFIA.

The selected firm must execute a formal agreement.

9. PFIA-Specific Requirements

The selected firm must:

Acknowledge fiduciary responsibility under PFIA.

Provide written certification that the firm:

o Has reviewed the District’s Investment Policy o Will comply with the District’s Investment Policy

Avoid transactions that create conflicts of interest.

Maintain independence from broker/dealer activities.