Districts pooled their financial assets into one portfolio to gain leverage in competitively soliciting area banks for services.
According to officials, seven of the public school districts comprising the Lenape Region of Burlington County recently completed a competitive banking services proposal process that enabled the districts to solicit area banks for a strategic proposal to attain their business.
The districts involved in the proposal included Evesham Township, the Lenape Regional High School District, Medford Township, the borough of Medford Lakes, Shamong Township, Southampton Township and Tabernacle Township.
Officials say the process pooled the financial assets of the seven districts into one large financial portfolio, which gave the combined districts significant leverage in competitively soliciting area banks to offer their best proposal to gain the business of all of the districts.
According to officials, Republic Bank provided the most strategic and revenue-friendly proposal among three banking institutions that submitted proposals.
Highlights of the Republic Bank proposal, which is guaranteed for five years, includes:
- The Guaranteed Fixed Minimum Interest Rate is 2.25 percent, regardless of market conditions.
- Interest rates will increase when the Treasury Bill Rate increases.
- All Services will be provided at no charge to all participating districts.
- There are no transaction fees or penalties fees.
- No minimum balance is required.
- Armored car service is available up to five times per week.
Officials say the successful process involved the cooperation and collaboration of all seven superintendents, business administrators and boards of education representing the districts involved.
“We appreciate Republic Bank’s efforts to provide us with the best options to ensure our districts can continue the tradition of sharing services to enhance efficiencies and maintain our fiscal responsibilities to our taxpayers,” said Lenape Regional High School District Business Administrator and Board Secretary Connie Stewart, who oversaw the proposal process. “Because we work together, we are able to run cost-effective educational programs without sacrificing our commitments to excellence.”
