By Dave Fidlin
Correspondent
With an eye toward getting the most bang for their buck, Town of Waterford officials are contemplating a proposal to shift all or a portion of the municipality’s funds to a new financial institution.
Town Chairman Tom Hincz brought representatives of Union Grove-based Community State Bank to the most recent Town Board meeting Aug. 11. Hincz suggested the town might want to consider ending or scaling back on its business with its current financial institution, Citizens Bank of Mukwonago.
“We have 21 accounts with (Citizens Bank), and I started to question it,” Hincz said. “We might consider streamlining our accounts. Hopefully we’d get a better deal on both sides of the coin.”
At the most recent board meeting, Scott Huedepohl, president and CEO of Community State Bank, gave his pitch before the town’s elected officials. He touted the institution’s longevity. It has been in operation 110 years.
“It is truly part of our DNA, as a community bank, that we focus on the communities we’re serving,” said Huedepohl, who pointed out he is a Town of Waterford resident. “We’re local, but we’re big enough to help people get the loans they need.”
Since its founding, Community State Bank has focused most of its concentration in the Western Racine County area. Five of its eight branches are in the region.
In addition to the flagship office in Union Grove, there are branch locations in Burlington, Kansasville, Rochester and Waterford. Two other branches are in Central Racine County (Mt. Pleasant, Sturtevant), while one is in Kenosha County (Paddock Lake).
“We consider this area our home, and this is where want to call it home,” Huedepohl said. “This is where we’ve been able to grow.”
While Town Board members lauded Huedepohl for his commitment to the Waterford area, several officials questioned whether it would be worthwhile to go through the monumental undertaking of switching all accounts to another financial institution.
At the moment, Huedepohl said, Community State Bank holds the accounts of 30 municipalities and school districts. Citing “privacy reasons,” he declined to name any of the governing agencies.
The core issue has to do with interest rates. Even at the current paltry rates — compared to figures before the 2008 housing collapse — a tenth of a percent could make a difference to an entity investing a large enough sum of money.
“We don’t have anything against our town’s financial institution right now,” Town Treasurer Heather Stratton said. “But (switching banks) could mean more money and be more effective.”
The board was split on Hincz’s proposal, and there was almost unanimous consensus more information was needed before a firm decision could be made. Several board members pointed to the town’s long-lasting relationship with Citizens Bank.
But other officials, including Town Supervisor Jan Alvey, said a look into other financial institutions is warranted at this time.
“To have to go out and look into this ourselves is kind of saying something,” Alvey said.
Further discussion of the town’s officially designated financial institution is anticipated at the next monthly board meeting, scheduled for 5:30 p.m. Monday, Sept. 8, at Town Hall, 415 N. Milwaukee Street.
“I am going to continue to look at options,” Hincz said. “We’ll get more numbers at the (September) meeting.”
-
-
-
-
-