Banking Services

Cities and counties are required to bank with a qualified public depositary ( 60kb), 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. RCW 36.29.020. Note that while savings banks, in addition to commercial banks, can be public depositaries, credit unions cannot. RCW 39.58.010(2) and (10).

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).

Reference Sources

• Statutes
  • RCW 39.58.080
  • RCW 35A.40.030
  • RCW 35.38.010
  • RCW 36.29.020
  • RCW 39.58.010(2) and (10)
• Selected MRSC Library Holdings - Banking Services
  [Note: Clicking on the Library Holdings links will take you to a list of documents available on loan through the MRSC library.]

Documents

• Requests for Proposals (RFPs)
  • Bellevue ( 133kb)(2003)
  • Enumclaw( 61kb) (2006)
  • Everett( 377kb) (2008)
  • Federal Way ( 159kb) (2007)
  • Ferndale( 116kb) (2006)
  • Kirkland ( 779kb) (2005)
  • Lynnwood ( 53kb) (2001)
  • Port of Port Angeles ( 192kb) (2007)
  • Pullman( 700kb) (2007)
  • Sunnyvale, CA ( 69kb) (2000)
  • Wenatchee ( 49kb) (2006)
  • Yakima County (2001)
    • Invitation for Proposals
    • Banking Services Bid Form ( 1,638kb)
    • Resolution issuing the invitation for proposals and setting the opening date ( 500kb)
  • State of Washington, Office of the State Treasurer (206kb)
• Procurement of Banking Services (96kb) - from Government Finance Officers Association Recommended Practices (1997 and 2004 and 2005)
• Use of Lockbox Services ( 88kb) - from Government Finance Officers Association Recommended Practices (2000 and 2003)
• Use of Positive Pay Versus Reverse Pay ( 24kb) - from Government Finance Officers Association Recommended Practices (2004)