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Banking Services

This page provides an overview of banking requirements for cities and counties in Washington State, along with sample RFPs/agreements and links to best practices and list of authorized depositaries.


Overview

Cities and counties are required to bank with a qualified public depositary (RCW 39.58.080). In code cities, the bank is designated by the council (RCW 35A.40.030). In other classes of cities and counties, the statutes allow the treasurer to select the bank (RCW 35.38.010 and 36.29.020). Note that credit unions are public depositaries solely for the purpose of receiving deposits of no more than $250,000, the maximum deposit insured by the national credit union share insurance fund.

Cities and counties may pay for their banking services by direct charges for each service, by compensating balances (funds the bank holds on which it pays no interest), or a combination of the two.

Most special purpose districts do not have their own treasurer and rely instead on the county treasurer to manage their financial and banking services. However, some special purpose districts use their own treasurer and procure their own banking services.

To make certain that they are getting the services at a good price, local agencies should periodically do a request for proposals (RFP). Examples are below.


Relevant Statutes

  • RCW 39.58.080 - Deposit of public funds in public depositary required -- Deposits in institutions located outside the state
  • RCW 35A.40.030 - Fiscal -- Depositaries
  • RCW 35.38.010 - Designation of depositaries
  • RCW 36.29.020 - Custodian of moneys -- Investment of funds not required for immediate expenditures -- Service fee
  • RCW 39.58.010 (8) and (15) - Definitions
  • RCW 39.58.240 - Credit union as public depositary -- Conditions

Examples of RFPs

Below are a few selected examples of banking requests for proposals.

Cities

Counties

Special Purpose Districts

Joint RFPs


Examples of Banking Agreements

Below are a couple examples of banking contracts. Some of the RFPs above also include sample banking contracts.


Recommended Resources


Last Modified: November 21, 2017