Chapter 3.09
EQUIPMENT RENTAL FUND

Sections:

3.09.010    Fund created.

3.09.020    Purpose.

3.09.030    Administration.

3.09.040    Sources of revenue.

3.09.050    Operation and accounting.

3.09.060    Expenditures – Transfers.

3.09.070    Rental rates.

3.09.080    Transfer of equipment.

3.09.090    Initial financing.

3.09.100    Dissolution of fund.

3.09.010 Fund created.

There is created and established a special fund to be known and designated as the “equipment rental fund” (together with such numerical designation as shall be assigned the fund by the chief financial officer of the city for accounting and budgetary purposes) in accordance with the provisions of RCW 35.21.088 as the same now is or hereinafter may be amended. (Ord. 1079 § 1, 1983).

3.09.020 Purpose.

The purpose of the equipment rental fund shall be to establish a central agency for the control, operation and maintenance of municipal equipment and the rental of such equipment to the various departments of the city and other governmental agencies at rates sufficient to meet costs of operation and to provide funds for the acquisition and replacement of equipment. (Ord. 1079 § 1, 1983).

3.09.030 Administration.

The equipment rental fund shall be administered by the public works director, subject to the general administrative authority of the city manager. (Ord. 1079 § 1, 1983).

3.09.040 Sources of revenue.

The equipment rental fund shall derive its moneys in any of the following ways:

A.    By direct appropriation in the annual budget adopted by ordinance from tax levies or other sources of anticipated revenue;

B.    By appropriation or budgetary transfer made by ordinance from other fund or funds of the city;

C.    From proceeds received from the rental of any of the equipment owned by the fund to other departments, offices or funds of the city or other governmental agencies; this shall include transfers from other funds or direct payment of amounts received for the use of such equipment on reimbursable projects done by the city. (Ord. 1079 § 1, 1983).

3.09.050 Operation and accounting.

The accounts of the equipment rental fund shall be set up and maintained in such a manner as to separately show the rental and other sources of revenues from the various departments and funds of the city, and shall make an allocation of such revenues between that required for operational costs and the amount to be set aside for the acquisition and replacement of equipment. It shall conform as nearly as possible to the uniform accounting system for equipment rental funds for cities of the state, prepared by the State Auditor, Division of Municipal Corporations on January 28, 1965, and as the same may be modified or amended. (Ord. 1079 § 1, 1983).

3.09.060 Expenditures – Transfers.

Revenues received in the equipment rental fund shall be expended for salaries, wages and operations required for the repair, replacement, purchase and operation of equipment, and for the purchase of equipment, materials and supplies to be used in the administration and operation of the fund. Transfers of moneys from the equipment rental fund to the cumulative reserve fund for equipment purchase shall be made periodically from revenues received and allocated for the acquisition and replacement of equipment and from available funds by action of the city council. (Ord. 1079 § 1, 1983).

3.09.070 Rental rates.

The administrator of the fund shall establish a schedule of reasonable rental rates and other charges to be paid by users of the fund’s equipment, materials and supplies, which shall take into consideration the costs and expenses of the following: operating supplies, maintenance expenses, insurance, depreciation, and other direct cost items; operational costs of the fund (overhead); a contingency for the acquisition of additional equipment and replacement of old equipment, including shop and administrative equipment; and such other items as may be reasonable or necessary in the proper operation of the fund. The schedule shall be submitted to the city council for its approval and adoption, and shall be reviewed and updated as necessary to reflect changes in operating, maintenance and depreciation costs. (Ord. 1079 § 1, 1983).

3.09.080 Transfer of equipment.

There shall be transferred to the equipment rental fund those items of equipment from the various funds, department and offices of the city as shown on the “schedule of equipment transferred” without charge or credit given. All future purchases of equipment by the cumulative reserve fund for equipment purchase from revenues received from the equipment rental fund and from other revenues received for such purpose shall be transferred to the equipment rental fund. (Ord. 1079 § 1, 1983).

3.09.090 Initial financing.

The equipment rental fund shall be initially financed from the budget appropriations made for such purpose in the budget. Should financing prove to be inadequate for the fund’s current annual outlay requirements, additional transfers of money to the equipment rental fund shall be made from the participating funds and departments until the fund becomes self-sufficient through a rental rate factor. (Ord. 1079 § 1, 1983).

3.09.100 Dissolution of fund.

Should the equipment rental fund established in this chapter be dissolved for any reason, a final disposition of the assets on hand shall be made among the various departments, offices and funds of the city participating in and utilizing the fund, in direct proportion to the amount of such participation and use, taking into consideration the transfer of equipment specially designed for the use of a certain department, office or fund. (Ord. 1079 § 1, 1983).