Bank_RFP_2026_Balch_Springs.docx

Request for Proposal Form for Depository Banking Services for the City of Balch Springs

DATE OF ISSUANCE: July 15, 2026

DATE OF SUBMISSION: August 14, 2026

The City of Balch Springs is soliciting request for proposals from financial institutions for Bank Depository Services in accordance with the terms, conditions, and requirements set forth in this Request for Proposals (“RFP”).

The City will receive proposals electronically only for Bank Depository Services no later than 3:00 PM CST August 14, 2026 through the City eProcurement Portal located at https://procurement.opengov.com/portal/cityofbalchsprings. Late submittals will not be considered or returned.

Questions/clarifications regarding this RFP must be submitted via the City eProcurement Portal, located at https://procurement.opengov.com/portal/cityofbalchsprings. Please note the deadline for submitting inquiries is no later than 12:00PM CST, July 22, 2026. All answers to inquiries will be posted on the City eProcurement Portal by July 27, 2026. Bidders may also click “Follow” on this bid to receive an email notification when answers are posted. It is the responsibility of the bidder to check the website for answers to inquiries.

The awarding of the proposal will take place at a City Council meeting tentatively scheduled for August 24, 2026. The Council reserves the right to accept, reject any and/or all proposals, waive minor technicalities, to award contracts for individual items as they may appear advantageous to the City or to award the proposal to the most responsible offeror which best serves the interest of the City.

TABLE OF CONTENTS

I. Introduction

II. Proposal Qualifications and Submission Instructions

III. Overview

IV. Financial Institution Qualifications

V. Required Services

VI. Alternative Services Offered by the Bank

VII. Optional Services

Attachment A: Proposed Fees

I. Introduction

The City of Balch Springs, Texas is requesting proposals for a three (3) year bank depository services contract with one possible two-year extension, if approved by the City Council. The initial contract period is to begin October 1, 2026 and extend through September 30, 2029.

Through this contract the City intends to minimize banking costs, improve operational efficiency, and maximize its investment capabilities. This Request for Proposal (RFP) which represents The City’s cash management goals, also specifies all required qualifications, the banking services required, the estimated activity volumes on all accounts, the method of compensation, submission instructions and contract award provisions.

Institutions responding to this Request for Proposal (RFP) must be insured through the Federal Deposit Insurance Corporation (FDIC) and must be able to demonstrate a capacity to meet the City’s service requirements as stated in the RFP.

II. Qualifications and Submission By submitting a proposal in response to this RFP, depositories will be deemed to agree to the mandatory contract and service provisions contained herein. This RFP and the Proposal submitted will be incorporated into and form the basis of the bank depository services contract.

Local Presence To assure a close working relationship and to facilitate services, depository institutions with full deposit service capabilities within ten miles of the City Hall.

Questions Regarding the RFP There will be no pre-bid conference but all questions regarding the RFP should be submitted via the City eProcurement Portal, located at https://procurement.opengov.com/portal/cityofbalchsprings. Please note the deadline for submitting inquiries is no later than 12:00PM CST, July 22, 2026.All answers to inquiries will be posted on the City eProcurement Portal by July 27, 2026. Bidders may also click “Follow” on this bid to receive an email notification when answers are posted. It is the responsibility of the bidder to check the website for answers to inquiries.

Submission To equitably evaluate each depository’s ability to meet the banking service needs of the City, a standard format for all proposals is required. A response is required for each question in this RFP along with completion of Attachment A - Proposed Fees. Responses must be in the same order as the questions presented and an answer each question, stating acceptance of modifications or additions to, or a statement of the inability to provide said service. Additional information describing the service or requirement may be included.

Only proposals submitted in the prescribed format and using the provided Attachment A will be considered and evaluated for contract award. Additional explanatory information may be included as part of a proposal.

This RFP and the proposal submitted will be incorporated into and form the basis of the bank depository services contract. To be eligible under this request, the bank must electronically submit their response on a jump drive by 3:00pm CST on August 14, 2026. The City will not accept proposals received after that time. No hard copy or late submission will be accepted or returned. The jump drives are to be mailed or delivered to the following two addresses:

The proposal envelope should clearly state it is for “Depository Services.” A cover letter must be included signed by an individual authorized to bind the institution and state that the proposal is valid for 180 days from the submission date giving full contact information regarding the proposal.

Schedule for Selection The City will make every effort to adhere to the following schedule:

Evaluation Criteria The City will use the following guidelines to evaluate the proposals.

City Rights The City reserves the right to:

· waive any defect, irregularity or informality in the proposal or proposal procedures,

· reject any and all proposals,

· accept any proposal or portion thereof most advantageous to the he City,

· request additional information or require a meeting with bank representatives for clarification,

· cancel, revise, and/or reissue this request for proposal or any portions thereof,

· negotiate any conditions with proposers,

· retain all other provisions even if any provision of the proposal is deemed invalid,

· modify deadlines, and

· select any proposal deemed to be in its best interest as determined by the City.

Proprietary Information To the extent permitted by law, proposals will be opened in a manner that avoids disclosure of the contents until after award of the contract. Proprietary information contained in the proposal should be designated as such on each page containing the restricted information.

Fees and Charges The City reserves the right to utilize either a fee basis or compensating balance basis (or a combination of each) for payment of banking services under the contract. The City reserves the right to change the payment methodology during the contract period upon no less than 30 days written notice to the bank with the change commencing on the first of a next calendar month. This will enable the City to take advantage of changing interest rate environments.

All item and account charges will remain at the proposal price quoted on Attachment A for the duration of the contract period regardless of changes in service volumes during the period. Should new services be required during the contract period not contemplated by this RFP, those services will be provided at fees not more than the bank’s then-current published rate and approved by the City.

III. OVERVIEW

The City currently maintains the eight accounts as shown below. All accounts are stand-alone. If under this contract an external sweep is utilized the sweep should be to an SEC registered money market mutual fund. The average relationship balance in the last 12 months has been $ 32,759,321 as shown on Attachment A. The City anticipates the use of an external sweep into a money market fund to capture the best earnings and avoid any balance based fee.

The number of accounts may change during the contract period. Historical balances in 2026 for the current accounts are shown below:

· The asterisk (*) designates a money market account

· Most bank activity occurs in the main operating account. Most wires, securities transactions, and inter-account transfers will occur in this account.

· Approximately $ 2 million in payables flows through the account monthly.

· The Payroll is approximately $1 million per month and 98% is direct deposit.

· Infrequent manual payroll checks are written for new employees.

The Balch Springs Community Development Corporation (Different EIN) is also to be included under the City umbrella of accounts but is a separate account which, as a public corporation, cannot be collateralized.

An external sweep will be into an approved SEC registered government money market fund which strives to maintain a $1 NAV. No repurchase agreement or off-shore accounts will be authorized for the sweep.

Any or all City funds may be maintained and invested by the City outside this contract. The City will be under no obligation to maintain time or demand funds in the bank, except under a compensating balance situation.

The Finance Department controls all banking, treasury, and investment activities. The Finance Department contains all accounts payable, receivables, payroll, and financial reporting functions. The Finance Director is responsible for the department and reports to the City Manager. The City does not currently use remote deposit or direct transmission but will require the service under this contract. Vault services are not needed but an occasional change order may be necessary at a branch.

Approximately 290 checks are received each month with a growing number of payments received electronically. Finance completes all reconciliations and is not using reconciliation services currently. Paper statements are not acceptable.

The City has approximately 175 FTE employees with 98% of those employees currently paid by direct deposit. No commercial card is used.

The City requires automated banking services wherever efficient and cost effective. This proposal should address automation availability and potential on any and all services.

The City currently utilizes interest bearing or money market accounts for smaller balance accounts and will decide on the use of the account as interest rates and conditions vary. All account decisions will be made by the City.

IV. FINANCIAL INSTITUTION QUALIFICATIONS

To be considered the proposal must include a response to each question in this Section.

The City banking services described in this RFP are directed toward five major goals:

· timely and accurate information flow,

· 100% utilization of idle funds and continuous investment of City funds,

· safety of City funds and securities,

· efficient utilization of available banking services, and

· minimization of banking costs for the City.

1. Creditworthiness In order to fulfill fiduciary responsibility and to protect public funds, each bank submitting applications shall:

a. Provide a link to the latest available audited annual financial statement. The bank will be required to submit an audited statement to the City each year of the contract period, as soon as it is available. Confirm agreement to this requirement.

b. Provide the bank’s Community Reinvestment Act (CRA) rating by its regulatory agency.

c. Provide the bank’s current senior and subordinate debt ratings. If the bank has no debt or is privately owned it may, as an alternative, provide the most recent four quarters rating from an independent bank rating agency such as Highline, Veri banc, or comparable bank rating agency.

d. The bank will be contractually responsible for notifying the City within thirty (30) days of any change in any of these ratings during the contract period. Confirm agreement to this requirement.

2. Customer Service Service will be a primary focus of the contract on a continuing basis. In this section, please describe the bank’s philosophy and approach to satisfying this need.

a. How will the bank satisfy the City need for superior customer service?

b. Is the bank offering any transition or retention incentives? Describe fully and quantify completely.

3. References.

a. List references from three comparable Texas public entity clients. For each reference, include the length of time under contract, a client contact, title, and email address.

4. Depository Agreement and Service Agreements This contract will be executed under a Master Depository Agreement executed under the terms of FIRREA.

a. Provide a copy of all depository and service agreements which will be required to be executed under the contract for services rendered. Any changes required on the agreements will be discussed and agreed upon before award of the contract.

5. Implementation Timeline.

The timeline should reflect the number of calendar days required to put the services in place or the end date of when such services will be in place and available. Default in promised delivery of services, without acceptable reasons, or failure to meet the terms or conditions of the depository contract without remedy, shall result in the City’s right to terminate the contract, but the exercising of such right to terminate the contract does not limit any other remedies for damages or other relief under law.

a. Provide a proposed timeline for implementation of the contract. Include required activities as defined by its responsible party and assigned responsibilities. Denote any limitations or potential delay points.

V. REQUIRED BANKING SERVICES

To be considered, the proposal must include a response to each of the questions in this Section and all associated fees must be detailed on Attachment A.

Add any level of detail necessary.

1. Account Structure

The City interested in assuring that all funds are continuously earning at the best, then-current interest rates. The City uses interest bearing accounts but is expecting to use an external sweep to an SEC registered money market mutual fund striving to maintain a $1 NAV.

The City must have the option to pay for services on a fee or compensating balance basis. If the external sweep is established the City will considering use of an automated, daily sweep in order to reach its full investment goal and to eliminate any balance-based fee. Rates will determine the methodology used. If a compensating balance basis is used with the sweep the sweep will be to the target balance as set by the bank.

a. Fully describe the bank’s proposed account structure.

b. Can the bank structure ZBA accounts to one master for an external sweep to an authorized money market fund?

c. If the bank is proposing an alternative to a sweep structure, such as an indexed interest-bearing account, detail and describe fully.

d. Do you participate in ICS (Insured Cash Sweep)? ICS is not recognized as a sweep vehicle though it could be used as an alternative investment.

e. Describe how sweep activity will be reported.

f. If an SEC registered money market fund is to be utilized for the sweep proposal, provide the full name and identifying cusip of the fund along with a copy of the prospectus.

g. Does the bank charge a balance-based assessment fee? At what rate?

h. Do interest bearing accounts earn at a bank managed rate or is the rate indexed?

i. Interest earned on interest bearing accounts shall not be charged as an expense on the account analysis. Confirm acceptance of this condition.

j. The City may be required or may desire to open additional accounts, or change account types during the contract period. If this occurs the new accounts and their services shall be charged at the same contracted amount. (Unanticipated or new services may be charged at not more than published rates.) Confirm agreement to this condition.

k. Indicate in the following table the bank's rate average for the past 12 months and currently.

2. Automated Cash Management Information

The City requires a web-based, single portal, automated cash management information system. The City requires timely access to transactions and daily balance reporting for balance and transaction detail. All reports should be downloadable. No paper reports will be required and are not preferred.

a. Provide a link to the bank’s information system with a password or full demo provision.

b. Fully describe the bank’s on-line service capabilities listing the system’s functions/capabilities.

c. Does the bank have mobile banking? What services are available on the mobile app?

d. What security protocols are built into the mobile app?

e. State the system access and update times for previous day and intra-day balance information.

f. Which entity controls the security and access functions for the online services?

g. Are all items imaged? Define types and note the online retention periods for each.

h. Are event messages or alerts available? How are alerts sent? Are alerts emailed or must the individual be online to receive notification?

3. Standard Deposit Services

Standard commercial deposit services are rarely used required. Most deposits are made electronically to the City (Approximately $300,000 incoming ACH credits monthly) and there are coin and currency deposits. Change orders are rarely used.

The City currently accepts debit and credit cards. Merchant services are not part of this RFP.

The City expects all deposited checks to clear based on the bank’s current published availability schedule. All cleared deposits received by the bank's established deadline must be processed for same day credit.

The bank shall guarantee immediate credit on all incoming wire transfers, ACH transactions, on-us items, and U.S. government security maturities and coupon payments. Failure to credit the City accounts in a timely fashion will require interest payment reimbursement to the City at the then-current daily Fed Funds rate.

a. What is the bank’s daily cut-off time to assure same day ledger, and - pending availability - collected credit? Does this vary by location (branch teller, vault)?

b. Describe how and when are credit/debit advices are sent to the City?

c. Include a list of all the bank's deposit local locations.

Remote Deposit The City is currently not using remote check deposit for all incoming checks. Deposits would include both consumer and commercial checks.

a. What are the bank's current capabilities in remote check deposit?

b. What is the cut-off time for deposits made remotely?

c. What scanner equipment is required? Will the bank provide the scanner?

d. What deposit reports are generated at the site? Provide a sample. Are any other reports available?

e. How is activity reported on the bank’s reports and online?

NSF Checks Received by the City Currently, NSF checks paid to the City are automatically re-deposited twice for collection. Complete information must be provided on all NSF returned items including name and reason for return.

a. Describe the bank’s current NSF process. Are checks automatically re-deposited? How many times?

b. How and when is the City to be notified of return items?

c. Is the bank capable of processing the second presentment as an ACH with a targeted presentment date (i.e. RCK)? Describe in full.

d. Is the NSF information or image available on-line? When and how? How long is it available online?

4. Disbursing Services

Standard disbursing services are required to include the payment of all the City employee checks without charge upon presentation. The City requires positive pay services for all its check issuing accounts.

The City does not use any commercial card.

Payroll is paid semi-monthly and averages $1 million a month. It utilizes direct deposit for payroll for approximately 98 % of employees. The City is always moving toward more vendor payments by ACH.

a. Will the bank cash all the City payroll checks on presentation without charge to the presenter and the City?

b. Describe any consolidated or e-payables program available.

c. Does the bank have its own commercial card program? Describe fully.

d. Is any rebate available on the commercial card program?

e. Does the bank have any virtual card program available to protect the City?

5. Positive Pay and Reconciliation

Payee positive pay will be required on all check writing accounts. The City currently has payee positive pay on two accounts to safeguard against fraudulent checks. The positive pay process should be fully automated and web based. Check information will be transmitted electronically to the bank on each check run and as manual checks are created.

The City intends that positive pay will be used in combination with partial reconciliation services.

a. Can the bank provide positive pay on all check writing accounts?

b. Can the bank provide payee positive pay?

c. Describe the data transmission/transfer requirements and alternatives for computer generated checks.

d. Online entry for individual checks is required. Describe the online input process and requirements for individual, manually written checks.

e. How can check records or the entire file be changed or deleted by THE CITY, if necessary?

f. How is the City to be notified of a positive pay exception?

g. At what time is exception information reported to the City?

h. At what time is the response deadline for the City exception elections?

i. Are all checks, including those received by the tellers and vault, verified against the positive pay file before processing? How often is teller information updated?

j. Describe your reconciliation processes.

k. How much flexibility is there for the bank’s systems to interface with the City’s in-house system? The City uses the Open Gov system. Does the bank have other public entities using this system?

6. Funds Transfer and Wire Services

The City currently has an average of one incoming domestic wire and two outgoing per month.

Incoming wire transfers must receive immediate same day collected credit. Wire initiation must be available online. The City requires that wires be released the same business day if information is provided by the established deadline. The City will require compensation for delays caused by bank errors at that day’s Fed Funds rate.

a. Is wire initiation available online?

b. Is wire status monitoring or reporting available online?

c. How and when will the bank notify the City of incoming wires? Alerts?

d. Describe security provisions for wire initiation.

e. Is future dating available for both repetitive and non-repetitive wires and transfers? How far in advance?

f. Are inter-account transfers able to be completed online?

g. What is the bank’s policy on ledger balances used for outgoing wires?

7. ACH Services

The City originates an average of 8 batch files and 100 ACH items a month. The City has an average of 4 same day batch files a month. They expect to continue moving toward more ACH vendor transactions. ACH is currently used for payrolls, periodic transfers, some vendor payments and debt service. The City requires a pre-notification on all new addresses.

a. Describe the batch transmission requirements for ACH transactions.

b. Is the City able to initiate individual ACH transactions on-line? How?

c. Are two-day, one-day and same-day ACH transactions available?

d. What filters and blocks are available for ACH transactions? Define and describe.

e. Are all ACH addenda shown in their entirety on-line and on reports?

f. Is the account debited on an ACH debit when the transaction is initiated or on settlement?

8. Collateral Requirements

Authorized collateral, as defined below, must be pledged against the total time and demand deposits net of FDIC insurance with a 102% margin on the collateral maintained daily by the bank. All the requirements, including those beyond the Public Funds Collateral Act, as stated in the City’s Investment Policy and below, must be met by the bank. The agreement must be FIRREA compliant.

The proposal must state agreement to the following terms and conditions:

· All collateral pledged to the City must be held in an independent, third-party bank outside the bank’s holding company.

· The depository agreement covering safekeeping shall be executed between the City and the depository for custody of pledged securities in full compliance with FIRREA requiring a bank resolution.

· All time and demand deposits above FDIC coverage shall be collateralized at a minimum of 102% of market value principal plus accrued interest daily.

· The bank shall be contractually responsible for the daily monitoring and maintaining of collateral at the required 102% margin levels.

· Pledged collateral shall be evidenced by original safekeeping receipts/report sent directly to the City, preferably by the custodian, within one business day of receipt.

· The City shall receive a monthly report of collateral pledged including description, par, market value and cusp.

· Substitution rights shall be granted if the bank obtains prior approval and if substituting securities are received before previously pledged securities are removed from safekeeping. Substitution rights may be waived under certain conditions approved by the City.

Authorized collateral includes only:

· Obligations of the US Treasury

· Obligations of US Government agencies and instrumentalities including mortgage-backed securities which pass the bank test.

· Bonds of any State or its subdivisions if rated A or better by at least one nationally recognized rating agency

· FHLB letters of credit

a. State the bank’s acceptance of the collateral conditions above. Note any exceptions.

b. Does the bank propose any collateral charges?

c. What institution will serve as the custodian for pledged collateral?

d. Does the custodian provide online inquiry?

e. Does the custodian provide daily mark-to-market pricing?

10. Stop Payments

The City rarely has stop pays averaging one per month however an automated process is required.

a. How are stop pays initiated?

b. How long are the standard stop pay periods?

c. What are the options for renewals of stop pays?

d. How is a stop pay renewed?

e. What is the deadline for same day action on stop pays?

f. If stop pay orders are initiated on-line, is there any paper follow-up document required?

g. What information on current and expiring stop pays is available on-line?

9. Account Analysis

Monthly account analysis reports must be provided for each account and on a consolidated account basis. Within five business days of receipt of the monthly account analysis (and subsequent approval of the fees by the City) the bank may direct debit the designated account for fees due if compensation is being calculated on a fee basis.

A complete account analysis will be required monthly regardless of the payment basis.

a. Provide a sample account analysis including calculation bases. One consolidated statement as well as individual account statements are required.

b. When and how is the analysis available each month? Online?

c. How long is the account analysis available online?

10. Monthly Statements

The bank must provide monthly account statements on all accounts with complete supporting documentation. All accounts must be on a calendar monthly cycle and statements received on a timely basis. Timeliness of statements is critical, and non-performance will be grounds for termination of contract.

a. Provide a sample monthly statement.

b. When and how are monthly statements made available each month?

c. How long is the monthly statement available online?

d. Are paper statements also sent to the City? If so, when? Is there a cost for paper statements?

11. Account Executive

To ensure smooth contract implementation and continuation of services, a specific account executive and a back-up must be assigned to the City account to coordinate services and expedite the solution of any problem encountered. The account executive should be available to meet with City staff on banking matters as needed and at a minimum semi-annually.

Provide the name, title and location of the proposed account executive.

Provide the name, title and location of the backup representative.

13. Overdrafts

Every effort will be made to eliminate intra-day and inter-day overdrafts. However, because this situation may arise, state the bank’s policy regarding account and total account overdraft policy and detail rates and fees, if any, to be charged on a per event or per account basis.

Are all accounts aggregated for overdraft calculation purposes or do accounts stand-alone?

State the fee charged per overdraft occurrence.

VI. Alternative Services Offered

If the bank has any other alternative or supplemental services (such as e-payables or e-receivables) which may offer enhanced value or be of interest to the City they should be described in this section. The costs of such services should also be identified at least generally.

VII. OPTIONAL SERVICES

The City continues to investigate new services for inclusion under its banking services contract. These services in this Section are not currently required but will be evaluated in terms of availability, feasibility, service levels, services provided, and charges for potential current, or future, use under the banking contract. Availability of the service and level and cost of the service will be a secondary consideration in the evaluation of the primary proposal since the services are not required.

The City reserves the right to accept optional services offered. If an optional service is initiated later in the contract period, the services and charges stipulated in the bank’s proposal in response to this RFP will be applied.

If the bank currently does not offer the service identified but is planning to make it available during the contract period, the bank should so stipulate in its proposal and should state the anticipated date of activation.

1. COMMERCIAL CARDS

The City does not use commercial cards for its employees or accounts payable.

a. Describe the Depository's program for commercial credit cards for issuance to specific individuals or for general use by an institution.

b. What controls are available?

c. What reporting is available? Is all reporting web-based?

d. What are the payment requirements?

e. Is there an annual fee?

f. Does the card provide for any rebates?

g. Can these cards be assigned to an individual but tied to the THE CITY?

2. CHECK WRITING

a. Does the bank currently provide check writing services?

b. What is the deadline for next day release of printed checks?

c. Where are checks written?

3. Safekeeping Services

The City may require book-entry safekeeping services for securities owned by the City although no safekeeping/custody is currently used. All the City investments will be made by the City, or its investment adviser, and instructions for clearing and safekeeping will be transmitted on a trade ticket to the bank in writing.

Custody can be provided by a correspondent. All securities must be cleared on a delivery versus payment (DVP) basis and ownership documented by original clearing confirmations and safe-keeping receipts provided within one business day of the transaction.

a. Does the bank offer safekeeping services? Will the service be provided by the bank or another entity?

b. Is trade input able to be input online? Describe fully. Is it required?

c. Name the correspondent bank to be used for clearing and safekeeping.

d. Will safekeeping fees be charged on the analysis or hard charged?

The City may choose to purchase time deposits from the bank but all time deposits will be competitively bid at the time of purchase.

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