Municipal Banking
Public funds are some of the stickiest, lowest-cost deposits a bank can hold, and the hardest to service. Hudson runs the virtual account setup, payments, signatory controls, and reconciliation behind every municipal relationship, so you can take on more with less risk and headcount.
The stickiest deposits in your area code
Win the next municipal RFP without rebuilding the public-funds workflow from scratch.
All municipal funds, tracked and accounted for
A single municipal client means dozens or hundreds of separate projects each with approval chains, spending restrictions, and reporting requirements. Hudson handles everything from creation to disbursement.
Account 01
Day-to-day operations. Tax receipts in, payroll & vendor payments out. Collateralized to state public-funds policy.
Account 02
Bond payment reserves accumulated from millage. Released only on scheduled debt-service dates, per the bond covenant.
Account 03
Proceeds spent only on projects named in the documents. Yield-restricted, arbitrage-tracked per IRC §148.
Account 04
Water, sewer, utility and other self-sustaining funds run like a business. Rate revenue in, operating & capital out.
Account 05
Tax collected on behalf of other entities. Special revenue restricted by source. Pass-through, scheduled remittance.
Onboarding done in days, not months
Every fund, covenant, and control configured quickly to launch a new municipal relationship before the next council meeting.
Managing the client accounts
Hudson is the layer between the municipality's treasury systems and their master account at the bank. Money flows in from taxpayers, utilities, grants, and other external sources. Hudson applies rules and workflows to automatically route proceeds to appropriate destinations.
.png)
8 things we handle, so you don't have to
One master per entity. Unlimited routable sub-accounts spun up in bulk.
Required collateral recalculated as balances move.
All tracked and restricted when necessary.
Fund-by-fund balance reports, transaction logs, reconciliation packets.
Thresholds set and approvals routed to the right signers, enforced by rule.
Allowed instruments, maximum maturity, diversification limits encoded.
Pass-through portions remitted on schedule to other taxing entities.
Annual report assembly and external-auditor exports in one click.
Specialty deposit verticals
Frequently asked questions
Hudson manages general operating funds, debt service reserves, capital project funds (yield-restricted and arbitrage-tracked per IRC §148), enterprise funds, and custodial/pass-through tax accounts.
Hudson connects to third-party finance software including Tyler Munis, OpenGov, BS&A, and ClearGov to support fast onboarding of new municipal relationships.
Debt service reserves accumulated from millage are released only on scheduled debt-service dates per the bond covenant, and bond proceeds plus arbitrage rebate tracking are automated where required.
Yes. Approval thresholds are set by the municipality, and payments are routed to the correct signers automatically, enforcing multi-signer controls by rule rather than manual oversight.
Hudson provides GASB-aligned, fund-by-fund balance reports, transaction logs, reconciliation packets, and a one-click auditor and ACFR pack for annual report assembly.
Required collateral is recalculated automatically as account balances move, keeping municipal deposits collateralized per state public-funds policy without manual recalculation.
Municipal onboarding, including sub-account setup, fund rules and covenants, and treasurer portal access, is typically completed in days rather than months.
Ready to grow deposits?
Check out how Hudson solves for the money movement and ledgering complexity that lives with Property Managers.
