Chapter 4.40
FUNDS

Sections:

4.40.010    Funds – Created.

4.40.011    Investment of city funds and apportionment of income derived from such investment.

4.40.012    Petty cash accounts – Establishment and regulation.

4.40.020    Advance travel expense fund – Established.

4.40.030    Advance travel expense fund – Custodian.

4.40.040    Advance travel expense fund – Requests for advances.

4.40.050    Advance travel expense fund – Voucher.

4.40.060    Advance travel expense fund – Lien.

4.40.070    Advance travel expense fund – Misappropriation.

4.40.080    Ambulance utility fund – Established.

4.40.090    Ambulance utility fund – Deposits.

4.40.100    Ambulance utility fund – Expenditures.

4.40.110    Arterial street fund – Established.

4.40.120    Arterial street fund – Deposits.

4.40.130    Arterial street fund – Expenditures.

4.40.140    Beautification fund – Established.

4.40.150    Beautification fund – Deposits.

4.40.160    Beautification fund – Expenditures.

4.40.170    Bond redemption fund – Established.

4.40.180    Bond redemption fund – Deposits.

4.40.190    Bond redemption fund – Expenditures.

4.40.200    City building acquisition and development fund – Established.

4.40.210    City building acquisition and development fund – Deposits.

4.40.220    City building acquisition and development fund – Expenditures.

4.40.230    City street fund – Established.

4.40.240    City street fund – Deposits.

4.40.250    City street fund – Expenditures.

4.40.260    Claims fund – Established.

4.40.270    Claims fund – Transfer.

4.40.280    Claims fund – Issuance of warrants.

4.40.290    Claims fund – Warrants – Purpose.

4.40.300    Community center complex construction fund – Established.

4.40.310    Community center complex construction fund – Expenditures.

4.40.320    Contingency fund – Established.

4.40.330    Contingency fund – Deposits.

4.40.340    Contingency fund – Expenditures.

4.40.350    Current expense fund – Established.

4.40.360    Current expense fund – Deposits.

4.40.370    Current expense fund – Expenditures.

4.40.380    Deferred compensation fund – Established.

4.40.390    Deferred compensation fund – Deposits.

4.40.400    Deferred compensation plan – Authority of city manager.

4.40.410    Emergency employment fund – Established.

4.40.420    Emergency employment fund – Deposits.

4.40.430    Emergency employment fund – Expenditures.

4.40.440    Equipment rental fund – Established.

4.40.450    Equipment rental fund – Purpose.

4.40.460    Equipment rental fund – Administration.

4.40.470    Equipment rental fund – Rental schedule.

4.40.480    Federal shared revenue fund – Established.

4.40.490    Federal shared revenue fund – Deposits.

4.40.500    Federal shared revenue fund – Expenditures.

4.40.510    Firemen’s relief and pension system – Established.

4.40.520    Firemen’s relief and pension system – Pension board.

4.40.530    Firemen’s relief and pension system – Pension fund.

4.40.540    Forward thrust fund – Established.

4.40.550    Housing and community development fund – Established.

4.40.560    Housing and community development fund – Deposits.

4.40.570    Housing and community development fund – Expenditures.

4.40.580    I-90 fund – Established.

4.40.590    I-90 fund – Deposits.

4.40.600    I-90 fund – Expenditures.

4.40.610    LID guaranty fund – Established.

4.40.620    LID guaranty fund – Levy for fund.

4.40.630    LID guaranty fund – Warrants.

4.40.640    LID guaranty fund – Defaulted obligations.

4.40.650    LID guaranty fund – Certificates of delinquency for general taxes.

4.40.660    LID guaranty fund – Interest and earnings.

4.40.670    Payroll fund – Established.

4.40.680    Payroll fund – Transfers from insolvent fund.

4.40.690    Project and equipment fund – Established.

4.40.700    Project and equipment fund – Deposits.

4.40.710    Project and equipment fund – Expenditures.

4.40.720    Self-insurance claim reserve fund – Established.

4.40.730    Self-insurance claim reserve fund – Account for physical loss to city property.

4.40.750    Self-insurance claim reserve fund – Approval.

4.40.760    Sewer utility fund – Established.

4.40.770    Sewer utility fund – Deposits.

4.40.780    Sewer utility fund – Expenditures.

4.40.790    Trust fund – Established.

4.40.800    Trust fund – Deposits and expenditures.

4.40.810    Water revenue fund – Established.

4.40.820    Water revenue fund – Deposits.

4.40.830    Water revenue fund – Expenditures.

4.40.840    Municipal arts fund – Established.

4.40.850    Municipal arts fund – Sources and funding.

4.40.860    Municipal arts fund – Uses.

4.40.870    Municipal arts fund – General procedures.

4.40.880    Youth services program enhancement trust fund – Established.

4.40.890    Youth services program enhancement trust fund – Funding.

4.40.900    Youth services program enhancement trust fund – Expenditures.

4.40.910    Youth services endowment fund – Established.

4.40.920    Youth services endowment fund – Sources and funding.

4.40.930    Youth services endowment fund – Expenditures.

4.40.940    Open space property acquisition fund – Established.

4.40.950    Open space property acquisition fund – Deposits.

4.40.960    Open space property acquisition fund – Expenditures.

4.40.970    Art in public places fund – Established.

4.40.972    Art in public places fund – Definitions.

4.40.973    Art in public places fund – Deposits.

4.40.974    Art in public places fund – Method of calculation of total project cost.

4.40.975    Art in public places fund – General obligation proceeds.

4.40.976    Art in public places fund – Uses.

4.40.977    Art in public places fund – Responsibilities of arts council.

4.40.010 Funds – Created.

There are created in the city treasury the following funds to be known and designated as:

Advance travel expense fund

Ambulance utility fund

Arterial street fund

Arts fund

Beautification fund

Bond redemption fund

City building acquisition and development fund

City street fund

Claims fund

Community center complex construction fund

Contingency fund

Current expense fund

Deferred compensation fund

Emergency employment fund

Equipment rental fund

Federal shared revenue fund

Firemen’s relief and pension fund

Forward thrust fund

Housing and community development fund

I-90 fund

LID guaranty fund

Payroll fund

Project and equipment fund

Self-insurance claim reserve fund

Sewer utility fund

Trust fund

Water revenue fund

Bond proceeds

(Ord. A-41 § 1, 1985; Ord. 495 § 6, 1980).

4.40.011 Investment of city funds and apportionment of income derived from such investment.

The city manager or his designee is authorized to determine the amount of money available in each fund of the city for investment purposes and may make investments authorized by law without the prior consent of the city council for each such investment. A report of investment transactions shall be made to the city council as required by law.

Moneys determined available for investment may be invested on an individual fund basis or may, unless otherwise restricted by law, be commingled with one common investment portfolio for investment. All income derived from such investment shall be applied for the benefit of the general or current expense fund of the city except as otherwise required to be invested by state statute, ordinance, resolution, or bond covenant. (Ord. A-12 § 1, 1982).

4.40.012 Petty cash accounts – Establishment and regulation.

The city finance director is authorized to establish petty cash accounts within the operating funds of the various city departments for the purpose of making miscellaneous small expenditures of funds without the necessity of voucher and warrant. The establishment of petty cash accounts shall be requested in writing by the head of the department in the form and detail prescribed by the finance director. All expenditures from such accounts shall be made from appropriations and for purposes authorized by the departmental annual budget. The maximum amount of such accounts shall be set by the finance director according to the needs of the petitioning department.

The finance director shall promulgate rules and regulations for the use of petty cash accounts which are consistent with this code, and in accordance with budgeting, accounting and reporting system (BARS). (Ord. A-80 § 1, 1989).

4.40.020 Advance travel expense fund – Established.

In order to provide reasonable allowances in advance of expenditure for expenses to be incurred by elected or appointed officials and employees of the city for necessary official travel, there is established a revolving fund, to be known as the “advance travel expense fund,” such fund to be used solely for the purpose of making advance payments of such travel expenses. Such advances shall be made under the provisions of state law and this chapter and under the rules and regulations prescribed by the State Auditor. (Ord. 495 § 6, 1980).

4.40.030 Advance travel expense fund – Custodian.

The custodian of this fund shall be the finance director and the fund shall be established by a city treasurer’s check in the sum of $1,000, which shall be deposited in a special checking account in a local bank in the name of the city and entitled “advance travel expense account – Jack Bunnell, custodian.” Advances for travel expenses shall be made by the issuance of checks drawn on such account payable to the applicant. A check register will be maintained in which all transactions of the fund will be recorded. (Ord. 495 § 6, 1980).

4.40.040 Advance travel expense fund – Requests for advances.

A. Requests for advances shall be reasonable estimates of the travel expense requirements of the applicant and include the following information:

1. Date of request;

2. Name of applicant;

3. Destination;

4. Purpose of travel;

5. Anticipated departure and return dates;

6. Amount requested;

7. Signature of applicant;

8. Official approval of trip;

9. Check number, amount and date (to be provided by the custodian when advance is made).

B. Approved requests will be retained in the files of the custodian to support such advances until final settlement is made and claim for reimbursement has been submitted. (Ord. 495 § 6, 1980).

4.40.050 Advance travel expense fund – Voucher.

On or before the tenth day following the close of the authorized travel period for which expenses have been advanced to any officer or employee, he shall submit to the appropriate official a fully itemized travel expense voucher, for all reimbursable items legally expended, accompanied by the unexpended portion of such advance, if any. Any advance made for this purpose, or any portion thereof, not repaid or accounted for in the time and manner specified herein, shall bear interest at the rate of 10 percent per year from the date of default until paid. (Ord. 495 § 6, 1980).

4.40.060 Advance travel expense fund – Lien.

To protect the city from any losses on account of advances made as provided herein, the city shall have a prior lien against and a right to withhold any and all funds payable or to become payable by the city to an officer or employee to whom such an advance has been given up to the amount of such advance and interest at the rate of 10 percent per year, until such time as repayment or justification has been made. No advance of any kind shall be made to any officer or employee at any time when he is delinquent in accounting for or repaying a prior advance. (Ord. 495 § 6, 1980).

4.40.070 Advance travel expense fund – Misappropriation.

Any advance made under the authority of this chapter shall be considered as having been made to the officer or employee to be expended by him as an agent of the city for the city’s purposes only, and specifically to defray necessary costs while performing his official duties. No such advance shall be considered as a personal loan to such officer or employee and any expenditure thereof, other than for official business purposes, shall be considered a misappropriation of public funds. (Ord. 495 § 6, 1980).

4.40.080 Ambulance utility fund – Established.

There is established in the city treasury a special fund to be known and designated as the “ambulance utility fund.” (Ord. 495 § 6, 1980).

4.40.090 Ambulance utility fund – Deposits.

There shall be deposited in the ambulance utility fund all revenues collected pursuant to the ambulance service charge established in Chapter 4.06 MICC. (Ord. 495 § 6, 1980).

4.40.100 Ambulance utility fund – Expenditures.

There shall be paid from the ambulance utility fund all expenses of maintenance and operation for all materials and supplies of the ambulance service system. (Ord. 495 § 6, 1980).

4.40.110 Arterial street fund – Established.

There is established in the city treasury a special fund to be known and designated as the “arterial street fund.” (Ord. 495 § 6, 1980).

4.40.120 Arterial street fund – Deposits.

There shall be deposited into this fund all revenues received in connection with Chapter 46.68 RCW. (Ord. 495 § 6, 1980).

4.40.130 Arterial street fund – Expenditures.

There shall be paid from this fund all expenditures in connection with approved arterial street projects. (Ord. 495 § 6, 1980).

4.40.140 Beautification fund – Established.

There is established in the city treasury a special fund to be known and designated as the “beautification fund.” (Ord. 495 § 6, 1980).

4.40.150 Beautification fund – Deposits.

There shall be deposited into this fund all tax revenues collected by the city pursuant to Chapter 4.10 MICC, except registration fees, penalties and interest. (Ord. 495 § 6, 1980).

4.40.160 Beautification fund – Expenditures.

There shall be paid from this fund expenditures relating to beautification of the city for the following and related purposes as determined by the city council:

A. Installation and maintenance of landscaping including plants and other landscape materials on public property or easements;

B. Acquisition, operation and/or maintenance of any building, facility, property or easement for park, recreation or open space purposes;

C. Undergrounding of power lines and lighting facilities for the operation and maintenance thereof on public property or easements;

D. Promotion and support of a central business district revitalization program;

E. The promotion, support, acquisition and installation of public art on public property or easements;

F. Acquisition or leasing of parking spaces for Mercer Island residents for the purpose of providing additional parking;

G. Enforcement of parking restrictions, providing signage related to parking, providing permits and any other expenses related to parking restrictions; and

H. All expenses, including, but not limited to, professional fees, printing and publishing incurred in connection with the above-listed purposes. (Ord. 03C-02 § 1; Ord. 01C-13 § 1; Ord. A-72 § 2, 1988; Ord. 495 § 6, 1980).

4.40.170 Bond redemption fund – Established.

There is established in the city treasury a special fund to be known and designated as “bond redemption fund.” (Ord. 495 § 6, 1980).

4.40.180 Bond redemption fund – Deposits.

There shall be deposited into this fund all revenue received in accordance with the bond redemption schedules. (Ord. 495 § 6, 1980).

4.40.190 Bond redemption fund – Expenditures.

There shall be paid from this fund all expenditures according to the bond redemption schedules. (Ord. 495 § 6, 1980).

4.40.200 City building acquisition and development fund – Established.

There is hereby established in the city treasury a special fund to be known and designated as the “city building acquisition and development fund.” (Ord. 495 § 6, 1980).

4.40.210 City building acquisition and development fund – Deposits.

There shall be deposited into this fund the proceeds from the sale of the general obligation bonds authorized by city Ordinance No. 483. (Ord. 495 § 6, 1980).

4.40.220 City building acquisition and development fund – Expenditures.

There shall be made from this fund expenditures solely for the acquisition and development of new repair, maintenance, or administrative facilities for the city. (Ord. 495 § 6, 1980).

4.40.230 City street fund – Established.

There is established in the city treasury a special fund to be known and designated as the “city street fund.” (Ord. 495 § 6, 1980).

4.40.240 City street fund – Deposits.

There shall be deposited into this fund all revenues received in connection with Chapter 46.68 RCW and all other moneys transferred and appropriated to this fund by the city council. (Ord. 495 § 6, 1980).

4.40.250 City street fund – Expenditures.

There shall be paid from this fund all expenditures in connection with the maintenance, operation and construction of all city streets. (Ord. 495 § 6, 1980).

4.40.260 Claims fund – Established.

There is established in the city treasury a special fund to be known and designated as the “claims fund.” (Ord. 495 § 6, 1980).

4.40.270 Claims fund – Transfer.

A. There shall be transferred into this fund amounts from the various department funds of the city which are now or may hereafter be established, and, from the current expense fund, an amount equal to the approved claims against the city for any purpose, excepting payroll.

B. The finance director is authorized to transfer from the funds of the various city departments sufficient funds to pay all claims against the city for any purpose, except payroll. Such transfers shall be made only after the city council has approved the payment of said claims. (Ord. 495 § 6, 1980).

4.40.280 Claims fund – Issuance of warrants.

The finance director is authorized to issue warrants on and against the city for any purpose, excepting payroll. The warrants shall be issued only after the claims against the city have been approved for payment by the city council. (Ord. 495 § 6, 1980).

4.40.290 Claims fund – Warrants – Purpose.

All warrants issued on or against this fund shall be used solely and only for the purpose set forth in this chapter and shall be payable only out of and from this fund. (Ord. 495 § 6, 1980).

4.40.300 Community center complex construction fund – Established.

There is established in the city treasury a special fund to be known and designated as the “community center complex construction fund.” (Ord. 495 § 6, 1980).

4.40.310 Community center complex construction fund – Expenditures.

There shall be paid from this fund all expenditures relating to completion of all phases of the construction project involving construction of a community center complex within the city including, but not limited to, preliminary design and engineering, and such other professional services as may be required. (Ord. 495 § 6, 1980).

4.40.320 Contingency fund – Established.

There is established in the city treasury a special fund to be known and designated as the “contingency fund.” (Ord. 495 § 6, 1980).

4.40.330 Contingency fund – Deposits.

The contingency fund shall be supported by a budgetary appropriation from any tax or revenue service not restricted to any use by law, and may also be supported by a transfer from any other unexpended or decreased fund made available by ordinance; provided, that the total amount accumulated in such fund at any time shall not exceed the equivalent of $0.375 per $1,000 of assessed valuation of property within the city at the time. Any moneys in the contingency fund at the end of the fiscal year shall not lapse except upon reappropriation by the city council to another fund in the adoption of a subsequent city budget. (Ord. 495 § 6, 1980).

4.40.340 Contingency fund – Expenditures.

No money shall be withdrawn from the contingency fund except by transfer to an appropriate operating fund authorized by ordinance of the city council, clearly stating the facts constituting the reason for the withdrawal or the emergency as the case may be and specifying the fund to which the withdrawn money shall be transferred. (Ord. 495 § 6, 1980).

4.40.350 Current expense fund – Established.

There is established in the city treasury a special fund to be known and designated as the “current expense fund.” (Ord. 495 § 6, 1980).

4.40.360 Current expense fund – Deposits.

There shall be deposited into this fund all proceeds of licenses, the proceeds of all fines, the proceeds of all general tax levies made by the city council, and all other moneys received into the city treasury unless the same be specifically collected for or ordered paid into some other fund. (Ord. 495 § 6, 1980).

4.40.370 Current expense fund – Expenditures.

There shall be paid from this fund all general expenses of conducting the city of every nature and description. (Ord. 495 § 6, 1980).

4.40.380 Deferred compensation fund – Established.

There is established in the city treasury a special fund to be known and designated as the “deferred compensation pension plan fund.” (Ord. 495 § 6, 1980).

4.40.390 Deferred compensation fund – Deposits.

There shall be deposited into this fund revenue derived from reductions in employee salaries as a result of agreements on the part of employees who participate in a deferred compensation pension plan. (Ord. 495 § 6, 1980).

4.40.400 Deferred compensation plan – Authority of city manager.

A. The city establishes deferred compensation plans for its employees and authorizes the city manager to execute master trust agreements with qualified deferred compensation plans for participation in by said employees.

B. The finance director may, on behalf of the city, execute all deferred compensation employment agreements with city employees and other eligible officials and officers, which are necessary for said persons’ participation in qualified deferred compensation plans; provided, that any deferred compensation employment agreement to be participated in by the finance director shall be executed by the city manager. (Ord. 495 § 6, 1980).¹

4.40.410 Emergency employment fund – Established.

There is established in the city treasury a special fund to be known and designated as the “emergency employment fund.” (Ord. 495 § 6, 1980).

4.40.420 Emergency employment fund – Deposits.

There shall be deposited into this fund moneys received from the federal government, through its program agent, King County. (Ord. 495 § 6, 1980).

4.40.430 Emergency employment fund – Expenditures.

The city is authorized to withdraw funds from the emergency employment fund for the payment of salaries of and personnel benefits for employees hired pursuant to the Emergency Employment Act of 1971. (Ord. 495 § 6, 1980).

4.40.440 Equipment rental fund – Established.

There is established in the city treasury a special fund to be known and designated as the “equipment rental fund” in accordance with the provisions of RCW 35.21.088. (Ord. 495 § 6, 1980).

4.40.450 Equipment rental fund – Purpose.

The equipment rental fund shall be used as a revolving fund to 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. (Ord. 495 § 6, 1980).

4.40.460 Equipment rental fund – Administration.

The equipment rental fund shall be administered by the city manager. (Ord. 495 § 6, 1980).

4.40.470 Equipment rental fund – Rental schedule.

The schedule, which is on file in the office of the city clerk and by this reference made a part hereof, lists the equipment, supplies and materials which are transferred to the equipment rental fund, without charge, and the reasonable rental terms and charges for the use of the equipment, supplies and materials by the several departments of the city or by other governmental agencies. (Ord. 495 § 6, 1980).

4.40.480 Federal shared revenue fund – Established.

There is established in the city treasury a special fund to be known and designated as the “federal shared revenue fund.” (Ord. 495 § 6, 1980).

4.40.490 Federal shared revenue fund – Deposits.

There shall be deposited into this fund all revenues received by the city under Title I of the State and Local Fiscal Assistance Act of 1972 and which will account for those moneys received under the Act. (Ord. 495 § 6, 1980).

4.40.500 Federal shared revenue fund – Expenditures.

Expenditures shall be restricted to those of a priority nature as defined in the Federal Act and as appropriated for such purposes by the city council. (Ord. 495 § 6, 1980).

4.40.510 Firemen’s relief and pension system – Established.

The municipal firemen’s relief and pension system, created, established and set forth in Chapter 41.18 RCW, is established in the city. All of the provisions, regulations and details of said chapter are by this reference incorporated in this chapter. Any and all amendments of said chapter or of any section thereof hereafter made shall likewise by this reference be constituted amendments of this chapter without the necessity of further adoption by the legislative authority of the city. (Ord. 495 § 6, 1980).

4.40.520 Firemen’s relief and pension system – Pension board.

There is established a municipal firemen’s pension board, to consist of the officials and persons designated by statute, being initially the mayor, who shall be the chairman of the board, the city manager, the finance director, and, in addition, two regularly employed firemen elected by secret ballot of the firemen. (Ord. 495 § 6, 1980).

4.40.530 Firemen’s relief and pension system – Pension fund.

There is established in the treasury of the city a fund to be known and designated as the “firemen’s pension fund,” into which shall be deposited moneys, bequests, fees, gifts, emoluments, donations, taxes, interest, contributions by firemen, including deductions from their pay, and moneys deriving through the state from taxes on fire insurance premiums. Administration of and disbursements from the fund shall be conducted and made as provided by statute. (Ord. 495 § 6, 1980).

4.40.540 Forward thrust fund – Established.

There is established in the city treasury a special fund to be known and designated as the “forward thrust fund,” into which moneys received and from which moneys may be expended on “forward thrust” projects approved by the county design commission. (Ord. 495 § 6, 1980).

4.40.550 Housing and community development fund – Established.

There is established in the city treasury a special fund to be known and designated as the “housing and community development fund.” (Ord. 495 § 6, 1980).

4.40.560 Housing and community development fund – Deposits.

There shall be deposited into this fund all authorized reimbursements from the federal Housing and Community Development Program. (Ord. 495 § 6, 1980).

4.40.570 Housing and community development fund – Expenditures.

There shall be made from this fund all expenditures in connection with approved housing and community development programs. (Ord. 495 § 6, 1980).

4.40.580 I-90 fund – Established.

There is established in the city treasury a special fund to be known and designated as the “I-90 fund.” (Ord. 495 § 6, 1980).

4.40.590 I-90 fund – Deposits.

There shall be deposited into this fund all moneys used for the city’s portion of the Interstate 90 construction costs and other associated costs. (Ord. 495 § 6, 1980).

4.40.600 I-90 fund – Expenditures.

There shall be made from this fund expenditures relating to the city’s portion of Interstate 90 construction costs and other associated costs. (Ord. 495 § 6, 1980).

4.40.610 LID guaranty fund – Established.

Pursuant to Chapters 35A.43 and 35.54 RCW, there is created a fund of the city to be known and designated as the “local improvement guaranty fund” for the purpose of guaranteeing, to the extent of such fund, in the manner provided by law and this chapter, the payment of local improvement district bonds, warrants and other obligations hereafter issued to pay the cost of improvements constructed in all local improvement districts of the city. (Ord. A-23 § 1, 1983).

4.40.620 LID guaranty fund – Levy for fund.

From time to time hereafter for the purpose of maintaining the local improvement guaranty fund, the city shall at the time of making its annual budget and tax levy provide for the levy of a sum sufficient, together with other resources of the fund, to meet the financial requirements of such fund; provided, that the levy of any one year shall not exceed five percent of the outstanding obligations guaranteed by the fund. (Ord. A-23 § 2, 1983).

4.40.630 LID guaranty fund – Warrants.

Warrants drawing interest at a rate to be determined by the city treasurer shall be issued against the local improvement guaranty fund to meet any liability accruing against it. The warrants so issued shall at no time exceed five percent of the outstanding obligations guaranteed by the fund. At the time of making its annual budget and tax levy the city shall provide for the levying of a sum sufficient with other resources of the fund, to pay warrants so issued during the preceding fiscal year. (Ord. A-23 § 3, 1983).

4.40.640 LID guaranty fund – Defaulted obligations.

Defaulted bonds, interest coupons, warrants and other obligations against local improvement district funds of the city shall be purchased out of the guaranty fund and as between the several issues of such bonds, coupons, warrants or other obligations no preference shall exist, but they shall be purchased in the order of their presentation. (Ord. A-23 § 4, 1983).

4.40.650 LID guaranty fund – Certificates of delinquency for general taxes.

A. For the purpose of protecting the guaranty fund, so much of the guaranty fund as is necessary may be used to purchase certificates of delinquency for general taxes on property subject to local improvement assessments which underlie the bonds, coupons, warrants or other obligations guaranteed by the fund or to purchase such property at county tax foreclosure or from the county after foreclosure.

B. The city, as trustee of the fund, may foreclose the lien of general taxes and certificates of delinquency and purchase the property at foreclosure sale. When doing so, the court costs, costs of publication, expense for clerical work and other expenses incidental thereto shall be charged to and paid from the local improvement guaranty fund.

C. After acquiring title to property by purchase at general tax foreclosure sale or from the county after foreclosure, the city may lease it or sell it at public or private sale at such price and on such terms as may be determined by resolution of the city council. All proceeds shall belong to and be paid into the local improvement guaranty fund. (Ord. A-23 § 5, 1983).

4.40.660 LID guaranty fund – Interest and earnings.

A. Interest and earnings from the local improvement guaranty fund shall be paid into the fund. If in any local improvement district fund guaranteed by the local improvement guaranty fund there is a surplus remaining after the payment of all outstanding bonds, warrants and other obligations payable therefrom, it shall be paid into the local improvement guaranty fund.

B. Whenever any sum is paid out of the local improvement guaranty fund on account of the principal or interest of a local improvement district bond, warrant or other obligation, the city, as trustee of the fund, shall be subrogated to all the rights of the holder of the bond, interest coupon, warrant or other obligation so paid and the proceeds thereof or of the underlying assessment shall become part of the guaranty fund. (Ord. A-23 § 6, 1983).

4.40.670 Payroll fund – Established.

A. There is established in the city treasury a special fund to be known and designated as the “payroll fund,” into which shall be paid and/or transferred moneys from time to time as directed by the city council from any funds available for the purpose of paying any moneys due city employees for salaries and wages. The accounts of the city shall be so kept that they shall show the department or departments and respective amounts to which the payment is properly chargeable.

B. Payment of salaries and wages shall be made by the issuance of warrants or bank checks drawn against the payroll fund. If bank checks are used for payment they shall be drawn on the bank which is designated as the official city depository. (Ord. A-15 § 1, 1982; Ord. 495 § 6, 1980).

4.40.680 Payroll fund – Transfers from insolvent fund.

Transfers from an insolvent fund to the payroll fund shall be by warrant. (Ord. 495 § 6, 1980).

4.40.690 Project and equipment fund – Established.

There is established in the city treasury a special fund to be known and designated as the “project and equipment fund.” (Ord. 495 § 6, 1980).

4.40.700 Project and equipment fund – Deposits.

There shall be deposited into this fund moneys to be used exclusively for the accomplishment of projects and/or the acquisition of equipment for the city. (Ord. 495 § 6, 1980).

4.40.710 Project and equipment fund – Expenditures.

There shall be made from this fund expenditures solely for the accomplishment of projects and/or the acquisition of equipment for the city. (Ord. 495 § 6, 1980).

4.40.720 Self-insurance claim reserve fund – Established.

There is established in the city treasury a special fund to be known and designated as the “self-insurance claim reserve fund.” (Ord. 495 § 6, 1980).

4.40.730 Self-insurance claim reserve fund – Account for physical loss to city property.

There shall be maintained within the insurance claims reserve fund an account to receive moneys and make expenditures for physical loss to city-owned property. The account shall have a minimum balance as of the beginning of the fiscal year 1982 of $40,000. (Ord. A-4 § 1, 1981; Ord. 495 § 6, 1980).

4.40.750 Self-insurance claim reserve fund – Approval.

All expenditures from the self-insurance claims reserve fund must be approved by the city council and finance director. (Ord. 495 § 6, 1980).

4.40.760 Sewer utility fund – Established.

There is established in the city treasury a special fund to be known and designated as the “sewer utility fund.” (Ord. 495 § 6, 1980).

4.40.770 Sewer utility fund – Deposits.

There shall be deposited into the fund all of the gross earnings and revenue of the city’s sewer system. (Ord. 495 § 6, 1980).

4.40.780 Sewer utility fund – Expenditures.

There shall be paid from this fund all the expenses of operation and maintenance of such system. (Ord. 495 § 6, 1980).

4.40.790 Trust fund – Established.

There is established in the city treasury a special fund to be known and designated as “trust fund.” (Ord. 495 § 6, 1980).

4.40.800 Trust fund – Deposits and expenditures.

The trust fund may receive moneys and expend moneys for the purpose designated by the donor. (Ord. 495 § 6, 1980).

4.40.810 Water revenue fund – Established.

There is established in the city treasury a special fund to be known and designated as the “water revenue fund.” (Ord. 495 § 6, 1980).

4.40.820 Water revenue fund – Deposits.

There shall be deposited into this fund all of the gross earnings and revenue of the water system of the city. (Ord. 495 § 6, 1980).

4.40.830 Water revenue fund – Expenditures.

There shall be paid from this fund all the expenses of operation and maintenance of such system. (Ord. 495 § 6, 1980).

4.40.840 Municipal arts fund – Established.

There is established in the city treasury a special fund to be known and designated as the “municipal arts fund.” (Ord. A-41 § 1, 1985).

4.40.850 Municipal arts fund – Sources and funding.

Funding for the municipal arts fund shall be derived from the following sources:

A. Annual Budget. Annually, as part of the municipal budget, the city council may appropriate funds for the accomplishment of any or all of the projects or undertakings set forth in the approved city art plan referred to in MICC 4.40.870C. Budgeted but unspent funds shall be maintained in the municipal arts fund, and carried forward at the end of each budget year.

B. Gifts, Donations and Grants. Private or public gifts, endowments, donations, bequests or other grants which are intended to be deposited in the municipal arts fund.

C. Interest from investment earnings of funds in the municipal arts fund. (Ord. A-41 § 1, 1985).

4.40.860 Municipal arts fund – Uses.

A. Expenditures of funds may be made for such things as studies, works of art, art performances, competitions of works of art or art performances, grants, plus payment of costs incurred for such things as installation and maintenance of works of art or for implementation of art performances. Grants will only be made in accordance with guidelines and procedures developed by the arts council and staff and approved by the city council.

B. Works of art shall mean individual pieces of art which are to be placed, either as an integral part of a municipal construction project, or to be in, on, or about other public facilities, or such other places as the city council may determine.

C. Art performances shall mean any event of a musical, theatrical, literary, historic or dance nature, initiated, sponsored, co-sponsored, or conducted by the city. Art performances shall also include programs or workshops, studies or artists in-residence whose primary intent is education, exhibition or advancement of musical, theatrical, literary, historical, dance or visual arts within the city.

D. The city of Mercer Island arts council shall determine the amount to be made available from grants or appropriated funds for the purchase of works of art or art performances. The designation of projects and sites, selection, contracting, purchase, commissioning, review of design, execution and placement, acceptance, maintenance, sale, exchange, or disposition of works of art or art performances shall be determined by the Mercer Island arts council in accordance with established arts council guidelines and procedures.

E. All works of art purchased and commissioned from the city municipal art fund shall be the property of the city and shall become part of the city art collection. The city art collection shall be developed, administered and operated by the Mercer Island arts council.

F. Nothing in this chapter shall limit the amount of money the city may spend for art work or art performances. (Ord. A-41 § 1, 1985).

4.40.870 Municipal arts fund – General procedures.

A. The city manager shall provide staff support services for the Mercer Island arts council. Such staff support shall include, but not be limited to, the development of work plans and schedules, budgets, guidelines and procedures, correspondence, gathering and presentation of information related to arts programs, and the implementation of arts programs approved by the arts council.

B. The arts council shall prepare guidelines and procedures for the designation of projects and sites, selection, contracting, purchase, commissioning, review of design, execution and placement, acceptance, maintenance, sale, exchange, or disposition of works of art and art performances for approval by the city council. Such guidelines and procedures shall annually be reviewed by the city of Mercer Island arts council. Changes in guidelines and procedures previously approved by the city council shall be returned to the city council for approval.

C. A city art plan including a schedule and budget for all city art program projects shall be prepared and updated annually by the city of Mercer Island arts council and staff. The city art plan shall be reviewed and approved annually by the city council. (Ord. A-41 § 1, 1985).

4.40.880 Youth services program enhancement trust fund – Established.

There is established in the city treasury a special fund to be known and designated as the youth services program enhancement trust fund. (Ord. A-45 § 1, 1986).

4.40.890 Youth services program enhancement trust fund – Funding.

A. The youth services program enhancement trust fund may receive funds from private or public gifts, endowments, donations, bequests, or other similar sources or grants which are intended to be deposited in the youth services program enhancement trust fund.

B. Funds which have been deposited in the fund shall be maintained and carried forward at the end of each budget year including interest from investment earnings of the funds. (Ord. A-45 § 1, 1986).

4.40.900 Youth services program enhancement trust fund – Expenditures.

The youth service board shall adopt guidelines for the expenditure of funds which shall be approved by the city council. The director of youth services shall be authorized to make expenditures subject to approval by the city council and shall submit periodic reports to the youth services board itemizing the various expenditures made. Expenditures from the fund shall be made to supplement and enhance current youth service programs in accordance with guidelines established by youth service board. (Ord. A-45 § 1, 1986).

4.40.910 Youth services endowment fund – Established.

There is established in the city treasury a special fund to be known and designated as the youth service endowment fund. (Ord. A-45 § 2, 1986).

4.40.920 Youth services endowment fund – Sources and funding.

A. Funding for the youth services endowment fund shall be by private or public gifts, endowments, donations, bequests or other such sources or grants which are intended to be deposited in the youth services endowment fund.

B. Only income earned from investment of the funds in the endowment fund may be expended unless the city council shall specifically authorize expenditure of principal. All invested funds, including unspent income from investment, shall be maintained in the youth services endowment fund, and carried forward at the end each budget year. (Ord. A-45 § 2, 1986).

4.40.930 Youth services endowment fund – Expenditures.

A. The youth service board shall adopt guidelines for the expenditure of funds from the youth service endowment fund which shall be approved by the city council.

B. All expenditures will be made from the fund only upon recommendation of the director of youth services and the approval of the youth services board or a designated committee of the board, subject to approval by the city council. (Ord. A-45 § 2, 1986).

4.40.940 Open space property acquisition fund – Established.

There is established in the city treasury a special fund to be known and designated as the “open space property acquisition fund” for the purpose of providing funds to acquisition of parks and open space property all as approved by the voters of King County at the November 7, 1989 election under the terms and provisions of King County Ordinance No. 9071, and for the acquisition of such other parks and open space property as the city council may deem it advisable to acquire from time to time. (Ord. A-84 § 1, 1990).

4.40.950 Open space property acquisition fund – Deposits.

There shall be deposited into this fund moneys to be used for the acquisition of parks and open space property within the city including moneys received from interfund loans for the purpose of interim financing of said property acquisition. (Ord. A-84 § 1, 1990).

4.40.960 Open space property acquisition fund – Expenditures.

Expenditures from this fund shall be made for the acquisition of parks and open space properties as deemed advisable by the city council from time to time. (Ord. A-84 § 1, 1990).

4.40.970 Art in public places fund – Established.

There is established in the city treasury a special fund to be known and designated as the “art in public places fund” for the purpose of providing funds for 1%-for-the-arts projects. (Ord. A-108 § 1, 1993).

4.40.972 Art in public places fund – Definitions.

As used in connection with the art in public places funds and 1%-for-the-arts projects, the following terms have the meaning set forth below:

A. “Acquisition of real property” means the purchase of parcels of land or existing buildings and structures, including associated costs such as appraisals or negotiations.

B. “Art in public places” means any expression by an artist of visual works of art available to the public in an open city-owned facility in areas designated as public areas, or on non-city-owned property if the work of art is installed or financed, either in whole or in part, by the city.

C. “Arts council” means the Mercer Island arts council.

D. “Demolition costs” means the cost of removing buildings or other structures from the property.

E. “Equipment” means equipment or furnishings that are portable.

F. “Qualifying capital improvement project” means projects funded wholly or in part by the city to construct or remodel any public project including buildings, decorative or commemorative structures, parks or any portion thereof; and projects involving the construction, renovation or repair of public streets, sidewalks, parking facilities, and water, sewer and storm drainage improvements. (Ord. A-108 § 1, 1993).

4.40.973 Art in public places fund – Deposits.

All authorizations and/or appropriations for qualifying capital improvement projects shall include an amount of not less than one percent of the total project cost to be set aside for transfer to the art in public places fund. (Ord. A-108 § 1, 1993).

4.40.974 Art in public places fund – Method of calculation of total project cost.

For qualifying capital improvement projects, the minimum amount to be appropriated for art in public places shall be as follows:

A. When the total estimated cost of a project exceeds $100,000 the amount shall be based on the total amount of the awarded contract as originally approved by the city council or as subsequently amended multiplied by one percent.

B. When the estimated cost of the project is $100,000 or less the amount shall be based on the estimated cost of the project multiplied by one percent.

Provided, however, that any city-funded amount for the acquisition of real property or equipment or for demolition shall be excluded for the purposes of this calculation. (Ord. A-108 § 1, 1993).

4.40.975 Art in public places fund – General obligation proceeds.

In the case of a city project which involves the use of general obligation bond proceeds, funds appropriated shall be used for projects and for capital purposes consistent with the authorizing resolution or ordinance approved by the city council and the voters. (Ord. A-108 § 1, 1993).

4.40.976 Art in public places fund – Uses.

A. The appropriations from qualifying capital improvement projects shall be pooled into the art in public places fund. The city council, upon advice and recommendation from the arts council, shall approve, from time to time, the amount to be authorized for 1%-for-the-arts projects. These funds shall be used for:

1. Selection, acquisition and installation or display of original works of visual art which may be an integral part of the project, or be placed in, on or about the project or in another public facility; and

2. Repairs and maintenance of public art acquired with 1%-for-the-arts funds; and

3. Other project-specific expenses of selection and acquisition; provided that no part of the funds shall be used to pay administrative staffing expenses of the program.

B. Any unexpended 1%-for-the-arts funds which remain in the art in public places fund at the end of any budget year shall not be transferred to the general fund or otherwise lapse, but said unexpended funds shall be carried forward from year to year until expended for the purposes set forth in this section, unless otherwise directed by the city council. (Ord. A-108 § 1, 1993).

4.40.977 Art in public places fund – Responsibilities of arts council.

Annually, the arts council shall make recommendations to the city council that will reflect short and long range planning for art works and sites regarding the appropriate of 1%-for-the-arts funds. The recommendations will relate to but will not limited by the following:

A. Art projects will be responsive to the developing public art needs of the community;

B. Art projects will reflect the scope, scale and character of the site; and

C. Art projects will be part of new parks and building developments. The arts council shall carry out all necessary tasks and procedures consistent with established arts policies for the selection, placement and conservation of art works. (Ord. A-108 § 1, 1993).

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Editor’s Note: This section was amended pursuant to Ord. 494, as per city attorney’s request.