Chapter 4.32
CITY WAREHOUSE FUND

Sections:

4.32.010    Establishment of city warehouse fund.

4.32.020    Purpose of fund.

4.32.030    Administration.

4.32.040    Capitalization.

4.32.050    Operating revenues and expenses.

4.32.060    Pricing policy.

4.32.065    Purchasing.

4.32.070    Disposition of assets on dissolution or withdrawal of original contributor.

4.32.010 Establishment of city warehouse fund.

The finance director is authorized to establish an internal service fund to be known as the city warehouse fund, designated as Fund No. 504, Division No. 440. [Ord. 8976 § 1, 1981; Ord. 8929 § 1, 1981].

4.32.020 Purpose of fund.

The purpose of establishing the city warehouse fund is to improve management of resources by consolidating the functions of purchasing, warehousing and issuing supplies used by the various departments and divisions of the city. [Ord. 8976 § 2, 1981; Ord. 8929 § 2, 1981].

4.32.030 Administration.

The public works department is responsible for the administration of the city warehouse fund. [Ord. 8976 § 3, 1981; Ord. 8929 § 3, 1981].

4.32.040 Capitalization.

A. Initial financing, consisting of working capital, cash, inventory supplies and equipment (such as shelving), will be contributed by user funds for the first year of operation. Thereafter, the fund will become self-sufficient through its revenues for operating expenses. Future capital acquisitions will be financed from operating revenue as available, or through additional contributions if a major expansion is planned.

B. Funds, departments and divisions that chose to use the fund after its initial establishment will not be required to make an initial cash contribution, or to consolidate all of their inventories. If capital contributions are required, the contributions will be set by ordinance.

C. As consideration for contributions, the fund will provide inventory management and control services to the users. [Ord. 8976 § 4, 1981; Ord. 8929 § 4, 1981].

4.32.050 Operating revenues and expenses.

Operating revenues will result from issuing supplies to the users. Operating expenses will include the cost of supplies issued and overhead costs, consisting of purchasing expenses, warehousing costs and issuing expenses. [Ord. 8976 § 5, 1981; Ord. 8929 § 5, 1981].

4.32.060 Pricing policy.

The city warehouse fund management will establish a pricing policy that allows the fund to recover the full cost of operations, including all overhead. The fund shall also generate enough net income to allow for replacement of inventories in periods of rising prices and for increases in inventory quantities to meet expanding needs of its users. [Ord. 8976 § 6, 1981; Ord. 8929 § 6, 1981].

4.32.065 Purchasing.

The city warehouse fund will not purchase office supplies and similar material and equipment that are purchased through the central stores fund for resale. [Ord. 8976 § 7, 1981].

4.32.070 Disposition of assets on dissolution or withdrawal of original contributor.

Should the city warehouse fund be dissolved for any reason or an original contributor withdraw its primary use from the warehouse, its assets on hand will be disposed of as follows:

A. Outside creditors will be paid first or accounted for, as appropriate.

B. Any outstanding interfund loans will be paid next or accounted for.

C. Contributed capital funds and equipment will revert to contributor funds. If resources are not available to pay back the full amount, distribution will be made on a percentage-of-contribution basis.

D. Any excess fund capital built up through operations will be distributed to contributor funds on a basis deemed appropriate and mutually agreeable at the time. [Ord. 10454 § 1, 1993].