City of Blaine Sees Big Results with 21st Century Bank
The 21st Century Business Banking Team Leverages Tailor-made Solutions to Support City Finances
When a municipality enters into a new banking partnership, it expects exceptional results. It’s part of each city’s commitment to best serving its community and ensuring effective, impactful use of taxpayer dollars.
That’s why when the City of Blaine – a Minneapolis-St Paul Metro suburb – chose to work with 21st Century Bank on municipal banking, it did so with the confidence that the decision was the right one. What quickly became apparent was the immense impact tailor-made banking solutions could have on its operations.
Blaine Seeks Community Banking, Discovers Exceptional Service
The City of Blaine is privileged to have someone like Finance Director Joe Huss, a nineteen-year leadership veteran with the city. He is insurmountable in ensuring that his community receives the best of the best in all its vendor partnerships, especially the city’s banking relationship.
When it came time to review the city’s options for their banking needs, Huss initiated a formal request for proposals. This due diligence on behalf of Blaine’s more than 70 thousand community members ensured that the city would build a partnership with a bank that both met their needs and provided them with something more.
“We were looking for a community bank, not a large national bank. We wanted a local presence,” Huss said. He recognizes there are advantages to working with a bank large enough to provide abundant products and services and still be small enough to build a strong relationship with tailor-made solutions and personalized support.
Huss reviewed the proposals the city had received and soon realized that 21st Century Bank was the right choice for the City of Blaine. The bank’s reasonable fee structure and breadth of products and services seemed the perfect pairing and with time, Huss witnessed first-hand the benefits of local banking.
“I’m not sure we knew it at the time, but what we appreciate now, more than ever, is that we know the people we talk to,” Huss said, discussing the positive impact of 21st Century Bank’s personalized customer service and knowledgeable team members.
Remote Deposit, Purchasing Cards Improve Operations
Led by Michael Gallagher, Senior Vice President of Business Development & Business Banking, the team’s driving force is its ability to identify products and services that save time, increase return on cities deposit balances, and ensure its customers’ financial security. The City of Blaine was no exception. The Business Banking Team at 21st Century Bank identified two specific beneficial solutions from a price and efficiency standpoint.
The first was the implementation of remote deposit capture, which saved Huss’s team members the time-consuming task of depositing to their accounts on location. In addition to the remote deposit capture, the Business Banking Team also recommended an alternative option for the city’s purchasing card.
"The Business Banking Team takes the extra step to identify options that benefit us, and that's followed by helpful implementation of the process. They really listen and respond as problem solvers."
“We pick up the phone and call customers, like the City of Blaine, to let them know when we have opportunities that may be a better fit for their needs,” said Gallagher. This transparent method of communication between the bank and the city helps to initiate significant improvements in collateral funds. Taking a proactive approach is a clear differentiator in the services offered by 21st Century Bank and helps ensure new opportunities for our customers.
Blaine, Minnesota
| Founded: | 1877 |
| Incorporated: | January 29, 1954 |
| Population (2020): | 70,222 |
| Website: | blainemn.gov |
Blaine, Minnesota's Economic Impact
“The fastest-growing suburb in the Twin Cities Metro Area with a growth rate of 18.8% between 2010 and 2020,” according to the City of Blaine’s website. Further growth is expected to be 24.3% between 2020 and 2040.
Blaine is home to many large companies including Aveda Corporation, Infinite Campus, PTC Inc., MagnetStreet (today known as Truly Engaging), Medtronic, and Dayton Rogers Manufacturing. It’s also home to the National Sports Center, an Olympic-class training facility, as well as home to a Tournament Players Club golf course which features the 3M Open, a PGA Tour event.
Blaine, Minnesota's Top Employers
Blaine is within the territory of both the MetroNorth Chamber of Commerce and the Twin Cities North Chamber of Commerce.
Outdoor Opportunities in Blaine, Minnesota
The Blaine community sports more than 60 parks with miles and miles of trails. Parks include:
The Blaine Wetland Sanctuary is more than 500 acres of protected upland and wetland featuring a boardwalk and a couple miles of trails.
| Founded: | 1877 |
| Incorporated: | January 29, 1954 |
| Population (2020): | 70,222 |
| Website: | blainemn.gov |
Blaine, Minnesota's Economic Impact
“The fastest-growing suburb in the Twin Cities Metro Area with a growth rate of 18.8% between 2010 and 2020,” according to the City of Blaine’s website. Further growth is expected to be 24.3% between 2020 and 2040.
Blaine is home to many large companies including Aveda Corporation, Infinite Campus, PTC Inc., MagnetStreet (today known as Truly Engaging), Medtronic, and Dayton Rogers Manufacturing. It’s also home to the National Sports Center, an Olympic-class training facility, as well as home to a Tournament Players Club golf course which features the 3M Open, a PGA Tour event.
Blaine, Minnesota's Top Employers
Blaine is within the territory of both the MetroNorth Chamber of Commerce and the Twin Cities North Chamber of Commerce.
Outdoor Opportunities in Blaine, Minnesota
The Blaine community sports more than 60 parks with miles and miles of trails. Parks include:
The Blaine Wetland Sanctuary is more than 500 acres of protected upland and wetland featuring a boardwalk and a couple miles of trails.
Win-Win Automation For the Municipality’s Collateralized Funds
The City of Blaine, as a government entity, must follow rules that can sometimes differ from regular commercial banking customers. “The knowledgeable Business Banking Team at 21st Century works with us to ensure we’re not only in alignment with the laws we need to follow but that we use them to our benefit,” said Huss.
Regulations state that each municipality must have funds on deposits collateralized beyond the standard Federal Deposit Corporation (FDIC) insurance. Any deposits above $250 thousand must be collateralized with government security at 110% of the market value of these deposits. This process took up much of the City of Blaine’s team members’ time and was less than optimal for earnings on invested dollars.
“We were transferring funds at least weekly, making sure we had enough cash, and anticipating what would clear that day,” said Huss. “Two people would have to be available to complete those transfers.”
The Business Banking Team identified a simple yet effective solution that transformed an unoptimized situation into a better arrangement for both partners. By opening an Insured Cash Sweep (ICS) account, funds automatically “sweep” into a linked investment account once the maximum balance is hit. This action keeps the balance within a preferred range and earns the city more interest than an ordinary business bank account. Additionally, no collateralization is required.
“Before this product, Blaine had to manage their money manually, back and forth,” said Gallagher. “We were able to eliminate the manual transfers by automating them. The process became more efficient, and they obtained all the safety required by law, maximizing the return on their dollars because every dollar was invested daily.” Huss says his team echoes their approval of the new arrangement. It relieves pressure on his team and reduces the time spent on the overall process. It’s a win-win for both parties.
With this approach to municipal banking, 21st Century Bank not only sets cities like Blaine up for success, but it has more money readily available to offer individuals, businesses, non-profits, and other organizations funding when they need it most. Let us show you the benefits that 21st Century Bank provides in the Minneapolis-St Paul Metro to ensure the ongoing success of its residents, businesses, and municipalities.
