Watertown School District Seeks Bids for Banking Services in New RFP | Local News

{KXLG – Watertown, SD} The Watertown School District is opening up its banking services to the market, seeking proposals from financial institutions to manage the district’s substantial finances. The School Board recently authorized the move, issuing a Request for Proposals (RFP) to find a banking partner that can ensure efficient handling of funds, offer competitive services, and improve operational effectiveness, according to district documents.

The chosen bank will begin managing the district’s accounts in July 2025. The RFP signals the district’s desire to potentially shift its banking relationship to secure the best possible services and value.

The RFP provides a snapshot of the district’s significant financial scale. Watertown School District reported a net financial position exceeding $130 million as of June 2024. In the last fiscal year, revenues approached $119 million, derived mainly from local property taxes, state aid, student tuition and fees, and federal student loan programs at Lake Area Technical College (LATC). Expenditures for the year totaled just under $100 million. Detailed financial information is available in the district’s publicly accessible audit report on its website.

The school district is seeking a comprehensive suite of banking services, including standard services like checking and deposits, electronic fund transfers, and wire capabilities. Investment services, encompassing interest-bearing accounts and short-term options, are also required. The district needs robust online banking with secure access, electronic reporting, and transaction features. Merchant services for credit card processing, payroll processing with direct deposit for employees, and strong fraud protection measures like “positive pay” and “ACH fraud filters” are also listed as essential. Finally, dedicated customer service and support are key requirements.

Financial institutions wishing to bid must provide detailed information in their proposals, due by 2:00 p.m. on April 16, 2025. Key elements of the proposals include an overview of the institution, a complete description of proposed services (including all fees and interest rates), details on technology and security, a plan for smooth service implementation, references from similar clients, a comprehensive cost breakdown, and information on the institution’s community involvement.

The district will evaluate proposals based on a range of criteria, including experience, service quality, technology and security strengths, cost-effectiveness, client references, customer support, and “community engagement efforts.”

The RFP states that the school district retains the right to reject any or all bids and will select the proposal deemed most beneficial. If a change is made, the transition to a new banking provider is anticipated between mid-July and early August 2025. Questions regarding the RFP should be directed to Business Manager Heidi Clausen or Assistant Business Manager Emily Sovell at the Watertown School District Business Office.