Money Matters Top 10 Banking Tips for Special Districts

By Jerry Legg, SVP, Government Banking Manager, Five Star Bank and Lisa Stewart, SVP, Treasury Solutions Manager, Five Star Bank

Community banking experts from Five Star Bank share insights and guidance that benefit special districts.

1. Work with a TOP-RATED Community Bank!

The current banking climate reminds us it is critical to work with a bank that is a top performer in the industry. Review your bank’s ratings and rankings as they are indicators of the institution’s financial strength.

2. Expect Your Banking Partner to Know Your Organization:

You should have direct access to your banker and a meaningful partnership with someone who will provide product advisory expertise. Your banker should be proficient in your special districts’ needs, goals, and objectives.

3. Monthly Statement Review: continued on page 42...

Confirm you are billed only for products and services you utilize. Through reconciliation, verify there are no unauthorized checks, ACH debits, or wires clearing your account.

4. Break the Mold! Look at New Products & Services to Improve Efficiency!

It is human nature for some organizations to become comfortable with existing processes. However, technology has come a long way. For example, you can efficiently and cost-effectively pay employees and vendors via ACH or a purchasing credit card program.

5. Who are the signers on your bank accounts and are they current?

Has there been turnover in your district? Keep the list of authorized signers current so you can get checks signed and banking done when you need to.

6. Test the Waters!

Receive the best value for your banking expense by obtaining quotes and pricing every few years. Your district is responsible for public funds and being a good fiduciary means ensuring you receive the best value for each dollar deposited. Work with the right banking partner who understands public funds, which will take time, money, and effort.

7. Eliminate Accepting Cash as Much as Possible Cash presents many problems, and most importantly, creates liability. For example, cash needs to be counted, secured properly, and transported. There are also safety concerns for employees who carry cash, as well as time wasted with long lines and wait times. Further, most banks charge fees for accepting cash. Try to limit cash payments by accepting checks, bill pay and credit cards whenever possible. Credit card fees can usually be passed to customers as a convenience fee.

8. Ask for Help!

Contact your banking partner for assistance or training whenever needed. New and recently promoted employees often need training in online banking or setting-up an ACH batch file. Your banker should always be available to provide training and guidance.

9.

Know You Are More Than “Just a Number”

Expect your bank to partner with your district as a community advocate and champion. Banks should sponsor events and promote your district through marketing outreach efforts. Further, your banker should be nimble and able to offer guidance when market conditions change, such as during COVID-19. You are more than “just a number” and having a relationship with a trusted banker is often the most important asset a special district can have.

10. Prevent Fraud!

Always work with a financial institution that puts the safety of your information first. Tools that prevent fraud include Positive Pay for checks and ACH Positive Pay. Limit the authority of those who can send outgoing wire transfers and ensure protocols are in place for wire transfer verification.

ONE MORE! Work with a Bank that Supports CSDA! Banks that support the California Special Districts Association are in-tune with the needs, challenges, and goals of special districts. Work with banks who know you and support the important work you do every day.

Five Star Bank is a CSDA Platinum Member that recently earned the #1 ranking on the S&P Global Market Intelligence annual rankings of 2022’s best-performing community banks in the nation with assets between $3 billion and $10 billion.

Low-Cost, Competitively-Priced Financing Through CSDAFC

Even with interest rates on the rise, California’s special districts are finding low-cost, competitively-priced financing solutions through CSDA Finance Corporation. In the first quarter of 2023, CSDAFC facilitated nearly $32 million in transactions, large and small.

EXAMPLES OF RECENTLY CLOSED

Let us help you with your next financing need. Visit www.csdafinance.net to submit a quote request online or call 877.924.2732 for more information.www.csdafinance.net for more information or to request a free, no-obligation rate quote.