The general requirements for official bonds are provided in Chapter 42.08 RCW. And RCW 35A.12.080 is the primary statute discussing bonding requirements for officers of a code city with a mayor-council form of government. It states the following:
Any officer before entering upon the performance of his or her duties may be required to take an oath or affirmation as prescribed by charter or by ordinance for the faithful performance of his or her duties. The oath or affirmation shall be filed with the county auditor. The clerk, treasurer, if any, chief of police, and such other officers or employees as may be designated by ordinance or by charter shall be required to furnish annually an official bond conditioned on the honest and faithful performance of their official duties. The terms and penalty of official bonds and the surety therefor shall be prescribed by ordinance or charter and the bond shall be approved by the chief administrative officer of the city. The premiums on such bonds shall be paid by the city. When the furnishing of an official bond is required of an officer or employee, compliance with such provisions shall be an essential part of qualification for office. [emphasis added]
MRSC recommends checking your local code and/or ordinances regarding any bonding requirements that may apply to the mayor. Additionally, any officer designated to sign the checks, warrants, or initiate an electronic payment must have an official bond. The amount should be determined by the city but cannot be less than $50,000. See RCW 42.24.180(1), which states:
The auditing officer and the officer designated to sign the checks or warrants shall each be required to furnish an official bond for the faithful discharge of his or her duties in an amount determined by the legislative body but not less than fifty thousand dollars[.] [emphasis added]
If the mayor signs checks or warrants, they should be bonded.
The State Auditor’s Office (SAO) website has a page on Bond Coverage for Public Officials and Employees that states that:
[a] reasonable amount of bond coverage will vary with the size and financial activities of each local government. In determining the amount of coverage needed the insurance broker, legal counsel and other municipalities should be consulted when determining the amount of coverage needed.
In some cases, the fidelity coverage provided by a city’s risk pool membership or insurance policy should be sufficient to serve as the “bond” required by statute. MRSC recommends checking with them to see what is covered under the city’s policy.
For more information, see our page on Official Bonds and Oaths of Office.
MRSC also recommends discussing this matter with your agency attorney who will be in the best position to advise further. Our guidance is general and not a substitute for the advice of legal counsel.