Council renews primary depository with Happy State Bank

Vanessa Rincon, the city's director of finance, briefed council on the required solicitation for the city's primary depository under state law. "Chapter 105 of the Texas local government code requires municipalities to solicit a primary depository service at least every 5 years," Rincon said, and she explained that the current contract ends Sept. 30 and a new three-year contract would begin Oct. 1, 2026 with options for two additional one-year renewals.

Rincon said Valley View consultants assisted the solicitation, five banks attended a bidders' meeting and staff received four formal proposals. After scoring the bids and considering fees and interest income, staff recommended continuing with the current provider. "It is staff's recommendation that we go with Happy State Bank," she told council. Councilmember House moved to accept R26-701 as presented, the motion was seconded and the vote was unanimous; the contract remains with Happy State Bank.

The presentation included a comparison of service fees and estimated interest income; Valley View's assessment noted any of the four bidders would be acceptable but Happy State offered favorable terms given the city's needs and requirement that the bank have a physical presence within city limits. The action approved a routine financial services contract; no changes to banking authority or deposit practices were reported in the briefing.