This page provides an overview of banking requirements for cities and counties in Washington State, along with sample banking RFPs and agreements.
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 or by compensating balances or a combination of the two. (Compensating balances are funds the bank holds on which it pays no interest.) To make certain that they are getting the services at a good price, cities and counties should periodically do a request for proposals (RFP).
- 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 (Effective July 1, 2011).
Sample Requests for Proposals (RFPs)
- Benton County, 2009
- Clark County, 2010
- Ellensburg, 2011
- Federal Way, 2012
- Jefferson County, 2013
- King County, 2009
- Kirkland, 2011
- La Center, 2009
- Liberty Lake, 2013
- Maple Valley, 2013
- Mukilteo, 2009
- Poulsbo, 2009
- Snohomish, 2013
- Stanwood, 2013
Sample Banking Agreements and Contracts
- Mukilteo, 2009
- Government Finance Officers Association Best Practices