Banking Services

The City of Henderson
P.O. Box 716
Henderson,Kentucky42419-0716
Finance Department Phone: 270-831-1200
FAX: 270-831-1246
E-mail: Finance@hendersonky.gov
July 22, 2026
REQUEST FOR PROPOSAL
RFP Number 26 - 21
Banking Services
The City of Henderson, Kentucky is requesting sealed proposals from qualified institutions
for banking services as described in the following document. A banking institution (bank)
is considered to be qualified if it is legally authorized to conduct business in the
Commonwealth of Kentucky, has a branch office located within the City of Henderson and
can provide collateral for deposits.
According to KRS 66.480, "A credit union is not a "bank" or a "savings and loan
institution" within the meaning of KRS 66.480(1)(d). Funds may be invested only in
entities approved by the legislature as spelled out in KRS 66.480(1)(d).
Sealed proposals will be received in the Finance Office at the Henderson Municipal
Center, 222 First Street, PO Box 716, Henderson, Kentucky, 42419-0716, until 2:00
p.m., Wednesday, August 12, 2026. Facsimile or electronic proposals will not be
accepted. Late proposals will not be accepted. The proposal opening will not be open
to the public.
Questions regarding this Request for Proposal may be directed to Shay Bridges, Finance
Manager, at (270) 831-1200.
The proposals are being solicited pursuant to KRS 45A.370.

REQUEST FOR PROPOSAL
Page 2
Selection Criteria:
Listed in the order of importance are the criteria to be used to evaluate the responses and
to select the successful bank:
1. Interest rate paid on checking accounts
2. Ability to provide the services outlined in this proposal
3. Availability schedule for deposit items
4. Responsiveness to the Request for Proposal
General:
Written or oral discussions may be conducted with all responsible offerors who submit
proposals determined in writing to be reasonably susceptible of being selected for award.
However, award may be made on the basis of initial offers.
The intent of the City is for one bank to provide all the services requested in the proposal.
The City reserves the right to reject any or all proposals, to waive any irregularities or
informalities in any proposal and to accept or reject any item or combination of items.
The attached listing of checking accounts includes a representation of one month. This
number is the City's best estimate of the average volume and the City in no way guarantees
these as minimum or maximum volumes.
Term:
The City intends to enter into an agreement with a starting date of September 1, 2026 (or
as soon as practical thereafter) and an ending date of August 31, 2029 with two (2), one
year period renewal options if the renewal(s) are agreeable to both parties. All conditions
related to the banking services described herein shall remain in effect for the entire length
of the agreement.

REQUEST FOR PROPOSAL
Page 3
Services Required:
It is assumed there will be no charges for banking services. It is expected that all balances
in the City's checking accounts will earn interest at a rate as specified hereafter. The
services provided to the City at no cost shall include but not be limited to:
1. No minimum balance will be required in any of the City's checking accounts.
2. All bank statements must be available for download electronically.
3. The bank shall not be permitted to close any City account, no matter what the
balance, without written permission of the City. The written permission must
contain the signature of at least one authorized signer.
4. The bank must have night deposit capabilities.
5. The bank shall agree to correct all bank errors within three (3) business days after
notification.
6. The City occasionally requests coins and currency. The City does not anticipate this
service to be used more than bi-weekly.
7. The City will also require a minimum of four (4) locking deposit bags and keys.
8. The bank must be able to provide direct payroll deposit by means of an ACH file
sent to the bank that is generated by the City's Tyler Systems software. The City
will furnish the ACH direct deposit payroll file to the banking institution at least 36
hours in advance of the effective date. In rare circumstances, the City will furnish
the ACH direct deposit payroll file 24 hours in advance.
9. The bank shall provide the City with the online ability to make transfers between
checking accounts with same day settlement.
10. The bank must offer ACH Block / Filters with automatic email notifications.
11. The bank shall provide the City with the ability to initiate ACH transactions on line
or electronically.

REQUEST FOR PROPOSAL
Page 4
12. The bank will not hold funds related to the deposit of checks written on local banks
longer than one business day from the date of deposit and funds related to checks
written on non-local banks longer than two business days from the date of deposit.
13. The bank must furnish all necessary forms and supplies including but not limited to
deposit slips, stop payment orders, coin and currency wrappers, etc. at no cost to the
City. The City will provide its own imprinted checks.
14. Stop payments on checks as required.
15. The bank shall offer Positive Pay.
16. The bank shall provide Remote Deposit and 3 check scanners at no cost.
Other Information and Requirements:
Potential institutions shall have a formal backup plan in place to support customers and
provide uninterrupted service in the event of a disaster.
The City currently has twenty-two (22) active checking accounts. A listing is attached with
additional information per account.
The City currently generates and transmits an ACH direct deposit file of employees pay to
the bank on a bi-weekly basis. Approximately 407 employees use direct deposit. One small
direct deposit pension file is also sent once a month.
The City currently generates and transmits ACH direct deposit file to venders for accounts
payable 4 times monthly.
Currently the City has approximately 3,414 customers that pay their utility bills by means
of an ACH debit. Five files per month are sent to the bank with each file consisting of
300-900 entries.
The bank shall pledge securities of the United States Government having a fair market
value at least equal to 102% of the balance of the checking accounts. A listing of collateral
(pledged securities) including receipt number, face amount, pledged amount, due date and
market value shall be sent to the CFO quarterly (September 30th, December 31st, March
31st and June 30th). A letter of credit from a qualifying United States government agency
or corporation of the United States Government in lieu of pledged collateral would be
acceptable.

REQUEST FOR PROPOSAL
Page 5
Dollar amounts over those insured by the Federal Deposit Insurance Corporation or the
Federal Savings and Loan Insurance Corporation must be collateralized by securities of
agencies, backed by the full faith and credit of the United States or a United States
government agency, including but not limited to:
1. United States Treasury;
2. Export-Import Bank of the United States;
3. Farmers Home Administration;
4. Government National Mortgage Corporation;
Obligations of any corporation of the United States government, including but not limited
to:
1. Federal Home Loan Mortgage Corporation;
2. Federal Farm Credit Banks;
3. Bank for Cooperatives;
4. Federal Intermediate Credit Banks;
5. Federal Land Banks;
6. Federal Home Loan Banks;
7. Federal National Mortgage Association; and
8. Tennessee Valley Authority;
Audit Report:
The bank must provide a current audited financial statement or annual report with the
proposal and for each fiscal year in which the banking services agreement is in effect.
Interest Rate:
On all checking accounts, unless the account has been designated non interest bearing by
the City, the bank shall pay an interest rate equal to the high end current Target Fed Funds
Rate range (if applicable) as set by the Federal Reserve Bank plus or minus (to be proposed
by bank) basis points.
However, in no case shall the resulting interest rate be negative.

City of Henderson Checking Account Information
All numbers are respresentative of one month
DB Auto ACHs ACH
Account Name Digital Banking Transfers Transfers Out Transfers In Checks Items Deposit Deposits ACH In ACH Out Items Originated Average Balance
General Fund 110 48 62 0 0 0 35 1 0 1 0,498,500.00
Gas Fund 22 8 14 0 0 0 1 4 0 3,715,112.00
HRA Fund 1 0 1 0 0 0 0 2 0 7 ,816.00
Civil Service Pension Fund 7 3 5 0 0 0 0 0 0 975.00
Police & Fire Pension Fund 6 3 3 0 0 0 0 0 0 603.00
Revenue Clearing Fund 108 98 10 51 221 211 185 16 0 2,299,045.00
Payroll Clearing Fund 38 5 33 59 0 0 2 30 1500 822,000.00
Accounts Payable 73 7 66 354 0 0 6 4 225 880,208.00
Cemetery Fund 23 9 14 0 0 0 0 0 0 2 ,529.00
Health Insurance Fund 18 7 11 0 0 1 0 5 0 628,031.00
Bond Fund 1 0 1 0 0 0 1 1 0 129.00
Public Way Improvement Fund 24 14 10 0 0 0 0 0 0 3 ,916.00
Construction Fund 9 5 4 0 0 0 0 0 0 498,237.00
Hart Fund 31 6 27 0 0 0 0 0 0 71,091.00
Sanitation Collection Fund 36 10 26 0 0 0 28 0 0 1,943,731.00
911-Emergency Commission Fund 14 9 5 0 0 0 0 0 0 149,784.00
Tourist Commission Fund 7 0 7 0 0 0 0 4 0 3 ,175.00
CDBG-Community Development Fund 4 4 0 0 0 0 5 0 0 -
Police Investigation Fund 8 6 2 0 0 0 0 0 0 127,862.00
Confiscated Funds 1 1 0 0 0 0 0 0 0 116,755.00
Sports Complex 7 0 7 0 0 0 0 3 0 -
Opioid Settlement 0 0 1 0 0 0 0 0 0 653,571.00
Total 548 243 309 464 221 212 263 70 1725 2 2,423,070.00

REQUEST FOR PROPOSAL
Page 7
1. Conflict of interest -- Gratuities and kickbacks -- Use of confidential information. (KRS
45A.455)
(1) It shall be a breach of ethical standards for any employee with procurement
authority to participate directly in any proceeding or application; request for ruling
or other determination; claim or controversy; or other particular matter pertaining to
any contract, or subcontract, and any solicitation or proposal therefore, in which to
his knowledge:
(a) He, or any member of his immediate family has a financial interest therein;
or
(b) A business or organization in which he or any member of his immediate
family has a financial interest as an officer, director, trustee, partner, or
employee, is a party; or
(c) Any other person, business, or organization with whom he or any member of
his immediate family is negotiating or has an arrangement concerning
prospective employment is a party. Direct or indirect participation shall
include but not be limited to involvement through decision, approval,
disapproval, recommendation, preparation of any part of a purchase request,
influencing the content of any specification or purchase standard, rendering
of advice, investigation, auditing, or in any other advisory capacity
(2) It shall be a breach of ethical standards for any person to offer, give, or agree
to give any employee or former employee, or for any employee or former employee
to solicit, demand, accept, or agree to accept from another person, a gratuity or an
offer of employment, in connection with any decision, approval, disapproval,
recommendation, preparation of any part of a purchase request, influencing the
content of any specification or purchase standard, rendering of advice,
investigation, auditing, or in any other advisory capacity in any proceeding or
application, request for ruling or other determination, claim or controversy, or other
particular matter, pertaining to any contract or subcontract and any solicitation or
proposal therefore.
(3) It is a breach of ethical standards for any payment, gratuity, or offer of
employment to be made by or on behalf of a subcontractor under a contract to
the prime contractor or higher tier subcontractor or any person associated
therewith, as an inducement for the award of a subcontract or order.
(4) The prohibition against conflicts of interest and gratuities and kickbacks

REQUEST FOR PROPOSAL
Page 8
shall be conspicuously set forth in every local public agency written contract and
solicitation therefore.
(5) It shall be a breach of ethical standards for any public employee or former
employee knowingly to use confidential information for his actual or anticipated
personal gain, or the actual or anticipated personal gain of any other person.
Effective: April 9, 1980
History: Amended 1980 Ky. Acts ch. 250, sec. 16, effective April 9,
1980. -- Created 1978 Ky. Acts ch. 110, sec. 92, effective January
1, 1980.

BANKING SERVICES PROPOSAL RESPONSE FORM
RFP Number 26 - 21
Banking Services
Checking Accounts Interest Rate:
High end of Fed Funds Target Rate range (if applicable) plus/minus
__________________ basis points
However, in no case shall the resulting interest rate become negative
Exceptions and Clarifications:
____________________________________
Name of Financial Institution
____________________________________
Authorized Signature

City of Henderson, Kentucky
NON-COLLUSIVE VENDOR STATEMENT
PROPOSAL: Banking Services
The undersigned vendor, having fully informed himself regarding the accuracy of the
statements made herein, certifies that:
(1) The proposal has been arrived at by the vendor independently and has been
submitted without collusion with, and without any agreement, understanding, or
planned common course of action with, any other vendor of materials, supplies,
equipment, or services described in the invitation to propose, designed to limit
independent proposing or competition, and
(2) The contents of the proposal have not been communicated by the vendor or its
employees or agents to any person not any employee or agent of the vendor or its
surety on any bond furnished with the proposal, and will not be communicated
to any such person prior to the official opening of the proposal.
The undersigned vendor further certifies that this statement is executed for purposes
of inducing the City of Henderson to consider the proposal and make an award in
accordance therewith.
_____________________________
LEGAL NAME OF VENDOR
_______________________________________
BUSINESS ADDRESS
______________________________
SIGNATURE AND TITLE OF PERSON
AUTHORIZED TO SIGN
_______________________________________
DATE