School board selects Trust Bank as depository after rebid, citing rate stability

The Richland Community School District No. 1 board approved a motion to accept Trust Bank’s option 2 as the district depository through June 30, 2027, after a committee review of four competitive bids. "Given those numbers, it was the committee's recommendation that we opt for Trust Bank's option 2 bid," a committee spokesperson summarized during the meeting.

District staff and the committee compared fixed and variable‑rate proposals from Trust Bank and Midland State Bank and concluded that Trust Bank’s fixed 3.92% option better protected the district if interest rates decline, and eliminated a 15‑basis‑point fee that previously applied to large balances. The committee’s analysis modeled three scenarios (flat rates, a 0.5 percent decline, and a 0.5 percent increase) and reported that Trust Bank outperformed Midland in the falling‑rate scenario while Midland was advantaged only in an increasing‑rate scenario.

The committee said Trust Bank’s revised bid removed the district’s prior 15‑basis‑point charge on large deposits (the committee described this as a material improvement) and that the district can source a separate vendor for a cash‑back credit card program if desired. Board members noted Trust Bank materially revised its original bid and that the committee confirmed rates would not change for the district under the planned transition.

A roll‑call vote approved Trust Bank’s option 2; board members voiced unanimous support during the vote. The committee noted it had earlier considered variable‑rate offers from other local banks but rejected variable structures that lacked a floor rate as excessive risk to district revenue.