This page provides an overview of banking requirements for local governments 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).
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.
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 of "financial institution" and "public depositary"
Examples of RFPs
To make certain that they are getting the services at a good price, local agencies should periodically do a request for proposals (RFP). Below are a few selected examples.
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