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Council moves to continue banking relationship with Security Financial Bank
Summary
A staff-proposed five-year banking-services contract recommendation to retain Security Financial Bank won council approval after discussion of fees, collateralization and CRA ratings; several council members abstained.
The River Falls City Council on May 13 reviewed staff recommendations and approved a resolution to retain Security Financial Bank as the city’s primary banking services provider for a recommended five-year term, with an option for a five-year renewal.
City finance staff presented an overview of the request-for-proposals process, explaining the city solicited proposals, received two qualified bids, and evaluated fees, interest rates, collateralization arrangements and Community Reinvestment Act (CRA) ratings. Finance staff said the city typically holds about $5 million to $6 million in the general checking account to cover payments tied to large capital projects, and staff asked proposers to match the Local Government Investment Pool (LGIP) rate so the city does not forgo investment income while holding operating cash.
The review committee — which included staff and a council member — recommended remaining with Security Financial Bank because the bank currently waives fees, offered a rate that matches LGIP, and provided adequate collateral and services. The council discussed the proposal, including remote deposit and positive-pay fraud-prevention services, collateralization methods, and disaster-recovery plans for banking operations.
During the vote, one council member said they needed to abstain because their employer was listed among proposers; Morissette also recorded an abstention. The record shows other council members voting in favor. The council directed staff to finalize a five-year agreement with Security Financial Bank with an optional five-year renewal, and to continue using the city’s list of public depositories for other accounts and services.
City staff noted the transaction volumes: roughly 170–180 ACH batches per month, 1,400–1,900 checks per month, and very infrequent wire transfers. Staff also reminded the council of segregated accounts required for federal grant (GRAMA) and police forfeiture funds, and that the city maintains larger LGIP deposits for savings and investment.
