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Ohio Treasurer Josh Mandel
STAR
Plus Surpasses $100 Million in Deposits
Local Governments Benefit from Increased Yield, as Community Banks Keep
Ohio Tax Dollars in Local Communities
SANDUSKY - State Treasurer Josh Mandel announced today that the STAR
Plus local government investment program has surpassed $100 million in
local government deposits and continues to add new accounts each day.
The announcement was made at the Community Bankers Association of Ohio
Annual (CBAO) Convention in Sandusky, in which Treasurer Mandel
encouraged more community banks to become part of the STAR Plus deposit
network. The STAR Plus program, which was publicly launched
in May and started receiving deposits in early June, has received very
positive feedback from Ohio local government entities and community
banks.
"We are very pleased with the strong response to STAR Plus in such a
short period of time. Surpassing $100 million in local government
deposits into a program that has been live for just eight weeks is a
very positive sign," said Treasurer Mandel. "STAR Plus is a win-win-win
that provides full security on deposits, competitive yield over other
similar investment options, and strives to keep public funds in Ohio
community banks that fuel our local economies."
Over 50 Ohio government subdivisions have established STAR Plus
accounts, enabling them to provide security for cash reserves, while
maximizing yield to stretch public funds. The competitive yield offered
by STAR Plus provides opportunities for local governments to fund
projects and improve services, while also providing safety for public
funds.
"STAR Plus is a safe investment alternative that will benefit Cleveland
Metroparks by allowing us to generate additional interest that we can
use to fund projects and programs across the Park District," said David
Kuntz, Cleveland Metroparks Treasurer, after they deposited $10 million
into STAR Plus. "The program is the perfect investment option for
Cleveland Metroparks, providing the liquidity we need to meet 2012 cash
flow requirements."
"Greenfield schools intend to utilize the revenues generated by STAR
Plus to invest in projects and initiatives that will improve the
learning environment for our local students, and to continue our
tradition of excellence in education." said Joe Smith, Greenfield
Schools Treasurer, after the district deposited $9 million into STAR
Plus.
"The City of Powell is excited to participate in STAR Plus, because it
is a safe investment alternative that can help us to generate
additional interest we can use to fund our local priorities," said
Debra Miller, City of Powell Finance Director, after the city deposited
$937,500. "STAR Plus is a great investment program for us because there
is no risk on the investment, it adds diversification and it provides
weekly liquidity while earning a very high investment yield."
Treasurer Mandel chose the CBAO conference as the location to announce
surpassing the $100 million milestone in local government deposits
because CBAO has been an important partner on the STAR Plus program
since the beginning. The program has a goal of helping to keep Ohio
taxpayer dollars in Ohio community banks. According to data compiled by
the FDIC, community banks hold less than 25% of all deposits in the
banking system nationally, but make more than 50% of the small business
loans.
"The Community Bankers Association of Ohio is proud to partner with the
Ohio Treasurer's office in support of the STAR Plus program that can
keep Ohio taxpayer dollars in local community banks that support small
business growth. STAR Plus, which differs from the STAR Ohio program,
makes local government deposits more attractive and viable for many
community banks by leveraging FDIC insurance to eliminate the need for
expensive collateral," said Robert L. Palmer, President and Chief
Executive Officer of the CBAO. "STAR Plus strengthens the relationships
between local governments and community banks across Ohio because it is
designed to be a cost effective investment alternative that benefits
both parties and allows the deposits to remain in Ohio to promote
economic growth."
STAR Plus is available to STAR Ohio participants and is endorsed by the
Ohio Treasurer's office. The program provides safe and competitive
returns on cash deposits for Ohio local governments. It is modeled
after established private-sector programs and will allow government
fund managers to place deposits in a carefully-screened network of
hundreds of Federal Deposit Insurance Corporation (FDIC) insured banks
via a single convenient account. Funds will be deposited in multiple
banks to provide the maximum deposit insurance amount as set by the
FDIC, currently $250,000, providing the backing of the full faith and
credit of the U.S. Government. Public funds deposited in the program
are fully FDIC insured[1] with no credit or market risk while earning a
competitive yield, currently 25 basis points (0.25%) [2]. The minimum
amount required to open a STAR Plus account is $500,000, and the
current maximum amount is $15 million per depositor. The program offers
daily deposit capability and weekly liquidity with
penalty-free withdrawals for public funds managers.
For more information on STAR Plus, please visit: www.STAROhioPlus.com
or www.OhioTreasurer.gov.
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