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Village to negotiate five-year banking contract with Associated Bank after competitive RFP
Summary
After an RFP process, staff recommended—and the board directed staff to finalize—a five-year banking services contract with Associated Bank; staff said the restructuring of account setups will reduce fees and increase earnings potential.
The Village Board directed staff on April 15 to finalize a five-year banking-services contract with Associated Bank, following an RFP process and staff scoring of proposals.
Greg Wenholz, a village staff member who led the procurement, said he issued a banking services RFP on March 6 and received four bids by the March 21 deadline. Reviewers scored proposals across seven criteria including comprehensiveness of services, public-sector experience, financial strength, service-team continuity, charges and interest opportunities. Wenholz said Associated Bank ranked first after scoring, in part because it proposed an account structure designed to boost earnings potential despite not having the lowest fees on a single line item.
Wenholz said the recommended structure would lower the village’s fees by about 78% compared with current charges and increase interest earnings; he described the change as driven chiefly by eliminating a pass-through FDIC charge and restructuring sweeps and collateralization to maximize yield. Assistant Finance Director Sherry Halston also participated in scoring, Wenholz said.
The board moved and seconded a motion to direct staff to finalize the five-year contract for approval at the May 2025 meeting; the voice vote carried. Staff said prices in the proposed five-year contract would be locked for that period, with optional two-year extensions thereafter. Wenholz said that the incumbent’s public-sector experience and a dedicated service team were factors in the recommendation and that some local institutions (credit unions) scored lower on public-sector experience.
Why it matters: The contract governs the village’s cash management, fees and short-term investment returns. Staff said the recommended approach emphasizes safety, liquidity and yield while substantially reducing fees through account restructuring rather than fee-waiver promises alone.
