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Coconino County picks PNC for banking services and Principal for custody; treasurer cites efficiency, fraud controls
Summary
After an RFP process, the board of deposit awarded primary county banking services to PNC Bank and custody/trust services to Principal Custody Solutions, citing improved transaction automation, fraud protections and reporting that will speed tax processing and auditing.
The Coconino County Board of Deposit voted to accept the treasurer’s recommendation to award banking services contracts to PNC Bank (category 1: deposits, ACH, wires, merchant services and related operating accounts) and to Principal Custody Solutions (category 2: custody and safekeeping for the county investment portfolio). The decision follows an RFP process started in October 2024 in which the county received multiple bids and a technical evaluation by a cross‑departmental review panel.
Treasurer Sarah Benatar told the board the county receives and disburses more than $1.2 billion annually and currently manages an investment portfolio whose balances fluctuate between about $400 million and $500 million. She said the county’s priorities for a new contract included stronger fraud controls, easier audit reporting, modernized lockbox/lock‑processing for property tax receipts and improved online administrative controls for account users. Benatar said the county had previously renewed a bank contract but decided to issue a full RFP this cycle to assess advances in bank technology and services.
The review committee unanimously recommended PNC Bank for the primary banking services package; staff highlighted PNC’s integrated receivables/lockbox product, live client chat, upgraded reporting that supports audit and cybersecurity checks, and transition credits to offset equipment upgrades. PNC representatives also outlined local delivery plans and said the bank offers a regional public finance team and capital markets capabilities for underwriting and secondary market services.
For custody and safekeeping services, Principal Custody Solutions — which acquired the custody business from a national bank — was recommended on the strength of its specialized reporting, securities processing platform and experience with public clients. County staff said custody work will support the county’s in‑house investment program and that custody fees are paid from interest earnings rather than the general fund.
Supervisors asked about transition timing and operational risk during the changeover; Benatar said the county and the new providers have a transition plan, credits to offset hardware replacements and that tax‑season timing was a factor in planning. The board approved the awards in a single vote.
Ending: Treasurer Benatar said the new services should reduce manual work for county staff, speed reconciliation and strengthen controls; supervisors asked to be briefed on transition milestones and to receive a short report after the first full tax cycle with the new lockbox processing in place.
