Banking Services
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.
Most special purpose districts do not have their own treasurers 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.
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
- Kirkland Banking Services RFP (2015) – Includes sample contract
- Liberty Lake Banking Services RFP (2013) – Includes sample contract
- Maple Valley Banking Services RFP (2013) – Includes sample contract
- Poulsbo Banking Services RFP (2017) – Includes sample professional services agreement
- Seattle Bank Depository Services RFP (2012)
- Stanwood Banking Services RFP (2017) – Includes sample contract
- Washougal Banking Services RFP (2016)
Counties
- Franklin County Banking Services RFP (2016)
- King County Banking Services RFP (2009)
- Skagit County Banking Services RFP (2015)
- Thurston County Banking Services RFP (2011)
Special Purpose Districts
- Mukilteo Water and Wastewater District Banking Services RFP (2011)
- Port of Port Angeles Banking Services RFP (2014)
Joint RFPs
- Clark County, Vancouver, and Port of Vancouver Banking Services RFP (2010) – Includes sample contract
Examples of Banking Agreements
Below are a couple examples of banking contracts. Some of the RFPs above also include sample banking contracts.
- Bonney Lake Banking Services Agreement (2014) – Includes resolution authorizing mayor to sign agreement
- Stanwood Banking Services Agreement and 1-Year Extension (2017) – Includes original three-year banking agreement, plus one-year extension
Recommended Resources
- WA State Treasurer: Qualified Public Depositaries – List of financial institutions currently authorized to accept public deposits
- Government Finance Officers Association (GFOA)
- Treasury and Investment Management Best Practices – Click on the "Banking and Merchant Services" tab to see GFOA best practices related to procurement of financial services, bank account fraud prevention, payment cards, remote deposit capture, and other banking topics
- Banking RFP Checklist – Intended as a starting point for governments to develop banking RFPs
