Banking services to be handled by Associated Bank
By Kellen Olshefski
Editor
The City of Elkhorn Common Council voted 5-0 in favor of a motion to switch its banking services from JP Morgan Chase Bank to Associated Bank during it’s meeting Dec. 7 meeting.
Alderman Tom Myrin, branch manager for US Bank, which submitted a proposal to provide banking services for the city, abstained from the vote. Myrin also abstained from the vote at the Nov. 23 Finance and Judicial Committee meeting.
City Finance Director James Heilman said Monday night there were a number of things that made Associated Bank the best choice for the city.
Heilman said while the easiest thing to do is to stay with the incumbent, JP Morgan Chase Bank, as a lot goes into changing banks, it was a situation they just couldn’t pass up.
Heilman said with JP Morgan Chase Bank, they’ve encountered some issues with lateralization and fees, noting the bank has bumped its fees quite a bit.
As an example, he said the city would be paying more than $1,000 a month to JP Morgan Chase Bank. However, fees with Associated Bank come in at about $609.
According Heilman, while they would end up paying in the end with JP Morgan Chase Bank, as interest earnings wouldn’t cover the fees, with Associated Bank the city would cover all of its fees and still bring in an additional $300 to $400 each month.
Additionally, he noted Associated Bank’s interest rate was higher than any of the other proposals received from First Merit Bank, US Bank, Peoples Bank and JP Morgan Chase Bank.
“So, it was pretty hard to turn a deaf ear to it,” he said.
Ranking the five proposals, Heilman said JP Morgan Chase Bank came in at third place.
“They didn’t give us a real sharp pencil on this one,” he said. “There were two banks ahead of them and Associated Bank was ahead of everyone.”
In other business
The council had a first reading of an ordinance to amend the municipal code regarding seasonal parking.
As the ordinance currently reads, it is against the municipal code to park or a leave a vehicle standing on any city street between Dec. 1 and April 1.
The amended ordinance would remove this time frame and prohibit parking whenever the National Weather Service has issued an alert for a winter weather advisory, winter storm warning or blizzard warning. Under the amended ordinance, parking restrictions would remain in effect for a period of 12-hours after the expiration of the winter storm message.
City Administrator Sam Tapson said Monday night the change is something that just makes sense, noting that winter weather isn’t always necessarily confined to that time frame.
“If it snows in October, 18-inches, don’t you want people to have their cars moved off the roads,” he said. “The idea is to get rid of the dates and go strictly on if there is a National Weather Service warning.”
Tapson noted the city has already had a major snowfall this season that occurred prior to the Dec. 1 start date for parking restrictions, which further shows how this ordinance would help.
Additionally, both Mayor Brian Olson and Tapson noted the amended ordinance would help to enforce on street parking during snow events as under the ordinance as it stands now, parking restrictions can’t be enforced prior to the Dec. 1 start date.
The amended ordinance will come back for a second reading at the council’s next meeting, which would be Dec. 21 if the council meets.
