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John Duggan
John Duggan
Title: Vice President and Government Finance Officer, Bristol County Savings Bank
Age: 60
Experience: 30 years in municipal and state finance
After nearly 30 years of experience in state and municipal finance, which included five years as a tax examiner for the Massachusetts Department of Revenue and nearly 25 years as the treasurer and collector of taxes in West Bridgewater, John Duggan was ready to retire. But before he could figure out his next step, a Bristol County Savings Bank employee came in and said he should talk to the bank about an interesting opportunity. It turned out to be a perfect match and Duggan was appointed vice president and government finance officer at the Taunton-based bank in July. Now Duggan is on the other side of the equation – no longer the veteran town official, but the banker who works with them. Towns and cities use banks for all sorts of operations, from holding the taxes they collect to managing stabilization funds to trying to grow revenue; and “they both need each other,” said Duggan.
Q: What is the role of a government finance officer?
A: We are here to assist municipalities with their banking relationships. Some of the operations I am tasked with are cash management, handling deposits such as real estate and motor vehicle excise taxes, online payments, investing funds, account reconciliation, payroll and vendor accounts. Bristol County Savings Bank started its full-service government finance business in 2008, whereas some other banks just have investment products.
Q: How has your experience as treasurer in West Bridgewater and time with the state Department of Revenue prepared you for your new position?
A: After 25 years with the town, I have a unique perspective on what municipalities need from their bank and the true partnership that is required to be successful. I am familiar with all aspects of cash management products – CDs, money market funds, concentration accounts – and I am also heavily experienced in vendor and payroll operations. West Bridgewater was one of the first towns to accept online payments from residents. That is just on the treasurer side. On the tax collection side, I have vast experience with lockbox services and processing payments.
Banks mostly help towns with depository services, a place for towns to put the money they collect and a place to invest money, process a town’s bills and manage a town’s payroll. Banks are instrumental in making sure a town is run efficiently. We provide for customers and we pick up deposits for towns and then bring them to the branch to be processed.
Q: What are some differences in working as a bank officer versus a town treasurer?
A: On the town side, you answer to the taxpayers and the selectmen and the Finance Committee. On the private side, we are responsible to treasurers and collectors. It is definitely two distinct jobs. There are a lot of responsibilities as the treasurer and collector because of issues like health insurance and pensions and the responsibility you have for parts of the budget. I enjoyed doing it, but to do it well is extremely stressful.
Q: What is the current relationship like between banks and municipalities? Is Bristol County Savings Bank looking to grow its business in this area?
A: Municipalities depend greatly on banks for services, including investing town funds, reconciling payroll and vendor accounts, lockbox, credit cards, online payments, state aid reporting and ACH/wire transfers, to name a few. As a full-service institution, Bristol County Savings Bank can offer municipalities a broad service offering, including wealth management and insurance options. In fact, municipal banking is an area of focus for us and we currently have a large portfolio of municipal relationships. We feel we have the experience, product offering and capacity to grow the portfolio and assist other communities in government banking.
Q: Is there more opportunity in government finance?
A: There is certainly some. Several towns and cities are building new schools. They are setting aside money to fund other post-employment benefits (essentially retiree health insurance, a huge debt for the entire state), which helps a town’s bond rating. There are plenty of towns and cities that are fiscally healthy, which means they have more surpluses and are putting money into stabilization accounts and starting to fund OPEB.
Duggan’s Five Things Municipalities Should Look For When Choosing A Financial Institution:
- A strong capital position
- An emphasis on building relationships
- Competitive interest rates
- A variety of government banking product offerings
- A focus on quality and responsive customer service
