After urging the Mid-Prairie School Board to invest its funds with local banks, Freedom Security Bank CEO Thomas Jepson issued no objections when the board voted to move its banking accounts to Hills Bank Kalona.

M-P Business Manager Doug Slabaugh thanked Jepson for the good service his bank has given the district the past seven years, but noted the ability to invest all district funds over $50,000 through a sweep account on a daily basis would relieve him of making the investments with Norwest on an irregular basis and earn the district more money.

Slabaugh said the district has been using FSB for depositing funds and checking, but all large investments were placed with Norwest Bank in Des Moines through a state investment program.

Jepson pointed out that both FSB and Hills Bank Kalona give heavily to the district in dollars and time. He noted that FSB paid $7,623 in school property taxes and made over $4,300 in donations for various school functions. In addition, 15 of the 18 bank employees live in the district with many paying property taxes. He asked how much Norwest puts back into the M-P district?

“If you want community support, you have got to support the community,” Jepson stressed. He noted that was true with any business providing goods and services in the school district. “Please consider what they put back into the community to help make this a better community.”

Dave Hochstetler, Hills Bank Kalona, noted his bank also invests heavily in the district in both cash donations as well as time and other support for a variety of school programs.

Slabaugh noted that the FSB bid did not charge per deposit or check as does the Hills Bank Kalona. He projected that the interest earned on having a sweep account would more than make up for those costs. Interest is projected at 4.67 per cent.

Hochstetler noted the sweep account allows the district to automatically invest all funds above $50,000 balance daily. “You’ll be fully invested at all times,” he said.

Slabaugh said he liked the idea of being able to keep funds locally plus Hills Bank Kalona allows him to check on the district’s accounts on a daily basis.

“If you keep the money here, I’m happy,” Jepson said in complimenting the board on its decision to move funds to Hills Bank Kalona to permit utilization of that bank’s investment program.