Subtitle III. Funds and Accounts*
*State law reference(s) – Accident fund, RCW 35A.31.060; uniform system of accounting established, RCW 43.09.200; separate funds created for each activity, RCW 43.09.210.
Chapter 3.40
SPECIFIC FUNDS*
Sections:
Part 1. Generally
3.40.010 Definition.
3.40.020 General fund.
3.40.040 Interfund loans.
Part 2. Arterial Street Fund
3.40.200 Established.
3.40.210 Expenditures.
Part 3. Environmental Mitigation Fund
3.40.300 Environmental mitigation fund.
3.40.310 Purpose.
3.40.320 Administration.
3.40.330 Disbursements.
Part 4. Housing and Community
Development Fund
3.40.400 Created.
3.40.420 Disbursements.
Part 5. Local Improvement District Bond
Guaranty Fund
3.40.500 Created.
3.40.510 Taxes levied.
3.40.520 Payment from fund.
Part 6. Equipment Rental Fund
3.40.600 Created.
3.40.610 Purpose.
3.40.620 Revenue.
3.40.630 Disbursements.
3.40.640 Administration.
3.40.650 Transfer of rolling stock.
3.40.660 Recovery of funds.
3.40.670 Rental rates.
Part 7. Unemployment Trust Fund
3.40.700 Created.
3.40.710 Purpose.
3.40.720 Transfers.
3.40.730 Payments.
Part 8. Worker’s Compensation Fund
3.40.800 Created.
Part 9. Fireman’s Relief and Pension Fund
3.40.900 Funds.
Part 10. Utilities Clearing Fund
3.40.1000 Created.
Part 11. Cash Bond Fund
3.40.1100 Created.
3.40.1110 Deposit and release.
Part 12. Human Services Fund
3.40.1200 Created.
3.40.1210 Expenditures.
Part 13. Boating Facility Fund
3.40.1300 Created.
3.40.1310 Expenditures and disbursements.
*Cross reference(s) – Art account created, § 4.04.020; deferred compensation plan fund, § 2.80.010.
PART 1. GENERALLY
3.40.010 Definition.
The city budgeting and accounting system is organized and operated on fund basis. A fund is defined as a fiscal and accounting entity with a self-balancing set of accounts recording cash and other financial resources together with all related liabilities and equities, and changes therein. Funds are segregated for the purposes of carrying on specific activities or attaining certain objectives in accordance with special regulations, restrictions, or limitations.
3.40.020 General fund.
A general fund is created. All general revenues of the city not otherwise accounted for shall be placed in the general funds and any general government expenditures not otherwise provided for shall be paid out of the general funds.
(Ord. No. 1921, §§ 1, 2. Formerly Code 1986, §§ 3.14.010, 3.14.020)
3.40.040 Interfund loans.
A. Authorization. The city council does hereby authorize the finance director, or his designee, to make interfund loans of those municipal monies which are otherwise legally available for investment purposes, where such loans would be necessary to ensure compliance with the provisions of RCW 43.09.210.
B. Procedures. The following procedures shall be used for the establishment and accounting of all interfund loans made pursuant to this section:
1. The city council by ordinance or resolution shall approve all interfund loans and provide in the authorization a planned schedule of repayment of the loan principal and shall set a reasonable rate of interest (based upon the external rate available to the municipality) to be paid to the lending fund.
2. Interest shall be charged in all cases unless:
a. The borrowing fund has no independent source of revenue other than the lending fund;
b. The borrowing fund is normally funded by the lending fund; or
c. The lending fund is the general fund, which, being unrestricted can loan interest free, except to a proprietary fund.
3. The borrowing fund must anticipate sufficient revenues to be in a position over the period of the loan to make the specified principal and interest payments as required in the authorizing ordinance.
4. The term of loan should whenever practicable be restricted to a period of one (1) year, but in no case shall the term of loan exceed three (3) years, except for those funds which are legally permitted to support one another through appropriations, transfers, advances, etc.
5. Only that portion of a given fund which, in the prudent management of municipal finances as determined by the finance director, is clearly inactive or in excess of current needs may be loaned to other municipal funds or invested.
6. Appropriate accounting records shall be maintained to reflect the balances of loans payable and receivable in every fund affected by such transactions.
(Ord. No. 2884, § 2, 12-19-89)
PART 2. ARTERIAL STREET FUND
3.40.200 Established.
There is established in the city a fund to be known as the arterial street fund created pursuant to RCW 47.24.040 into which all monies received in connection with the tax imposed pursuant to RCW 82.36.020 and apportioned pursuant to RCW 46.68.115 will be receipted for and from which all expenditures in connection with approved projects will be made.
(Ord. No. 1236, § 2. Formerly Code 1986, § 3.14.090)
3.40.210 Expenditures.
Monies in the arterial street fund shall only be expended for the purposes specified in RCW 47.24.040.
(Ord. No. 1236, § 2. Formerly Code 1986, § 3.14.100)
PART 3. ENVIRONMENTAL MITIGATION FUND
3.40.300 Environmental mitigation fund.
An environmental mitigation fund is established for the receipt of:
1. A portion of the solid waste utility tax to be used for general environmental mitigation and potential landfill clean up;
2. Receipt of all permit fees received for environmental review and mitigation of impacts resulting from cleanup of designated solid waste and hazardous waste sites by federal, state, or local governments, and the siting of a solid waste energy resource and recovery or incineration facility in the city. Such expenses shall be recovered as provided under Ch. 11.02 KCC.
(Ord. No. 2718, § 9. Formerly Code 1986, § 3.14.1070)
Cross reference(s) – Environmental review and community impact mitigation permit, Ch. 11.02.
3.40.310 Purpose.
The purpose of the environmental mitigation fund is to establish an orderly method of providing for adequate funding of administrative costs resulting from a required or ordered government cleanup of solid waste or hazardous waste sites or siting of solid waste energy resource and recovery or incineration facilities in the city. Permit fees are intended to assist affected departments, to support adequate environmental review, intergovernmental coordination, long-term planning, processing of permit applications, environmental monitoring capability, inspection and review of plans resulting from the cleanup of sites and facilities and the hiring of expert consultants.
(Ord. No. 2718, § 9. Formerly Code 1986, § 3.14.1071)
3.40.320 Administration.
The environmental mitigation fund shall be administered by the public works department in consultation with the planning department and law department. The public works department shall be responsible for keeping and maintaining all records of transactions involving the fund.
(Ord. No. 2718, § 9. Formerly Code 1986, § 3.14.1073)
3.40.330 Disbursements.
Monies shall be dispersed from the environmental mitigation fund for expenses relating to departmental services, consultant fees, legal fees, equipment and supplies related to the annual environmental review and assessment of community impacts and related environmental expenses.
(Ord. No. 2718, § 9. Formerly Code 1986, § 3.14.1072)
PART 4. HOUSING AND COMMUNITY DEVELOPMENT FUND
3.40.400 Created.
The housing and community development fund is created for the purpose of holding the monies allocated to the city under the State Housing and Community Development Act of 1974.
(Ord. No. 1974, § 1. Formerly Code 1986, § 3.14.870)
3.40.420 Disbursements.
Disbursements from the housing and community development fund shall be made pursuant to the guidelines established by the city council for each program to be funded. These guidelines shall conform to the requirements of the Federal Department of Housing and Urban Development and shall be sufficiently specific to accomplish the program goals.
(Ord. No. 1974, § 2. Formerly Code 1986, § 3.14.880)
PART 5. LOCAL IMPROVEMENT DISTRICT BOND GUARANTY FUND
3.40.500 Created.
The city establishes and creates a fund for the purpose of guaranteeing, to the extent of such fund, bonds and warrants issued against local improvement districts in the city. This fund shall be known as the local improvement guaranty fund.
(Ord. No. 811, § 1. Formerly Code 1986, § 3.14.030)
Cross reference(s) – Local improvement districts, Ch. 3.22.
State law reference(s) – Similar provisions, RCW 35.51.040, 35.45.010 et seq.
3.40.510 Taxes levied.
There shall be levied, from time to time as other taxes are levied, such sums as may be necessary to meet the financial requirements of the local improvement guaranty fund created by this chapter. Whenever the city shall have paid out of the guaranty fund any sum on account of principal and/or interest on a local improvement bond or warrant hereunder guaranteed, the city as trustee for such fund, shall be subrogated to all of the rights of the holder of the bond or interest coupon or warrant so paid and the proceeds thereof shall become a part of local improvement guaranty fund.
(Ord. No. 811, § 2. Formerly Code 1986, § 3.14.040)
State law reference(s) – Similar provisions, RCW 35.51.040.
3.40.520 Payment from fund.
Whenever any interest coupon, bond or warrant guaranteed under the provisions of the laws of the state shall be in default, the finance director shall be and is hereby authorized and directed, upon the presentation and delivery of such defaulted bond, coupon or warrant, to execute, sign and deliver to the same person presenting the same, in the order of their presentation, and the city shall honor and pay a warrant on the local improvement guaranty fund in such amount as may be necessary to pay in full any such coupon, bond or warrant with any interest that may be due thereon. Any defaulted coupon, bond or warrant received by the finance director under the provisions of this chapter shall be held for the benefit of the local improvement guaranty fund.
(Ord. No. 811, § 3. Formerly Code 1986, § 3.14.050)
PART 6. EQUIPMENT RENTAL FUND
3.40.600 Created.
There is created a special fund of the city to be known as the equipment rental fund.
(Ord. No. 1721, § 1. Formerly Code 1986, § 3.14.160)
State law reference(s) – Authority, RCW 35.21.088.
3.40.610 Purpose.
The purpose of the equipment rental fund is to establish an orderly method of providing for the availability of transportation and other type vehicles to various departments of the city.
(Ord. No. 1721, § 2. Formerly Code 1986, § 3.14.170)
3.40.620 Revenue.
The equipment rental fund shall receive revenue from rental of equipment to various departments of the city and from the sale of gasoline to other governmental units.
(Ord. No. 1721, § 3. Formerly Code 1986, § 3.14.180)
3.40.630 Disbursements.
Monies may be disbursed from the equipment rental fund for expenses of operating the equipment assigned to the fund and for the purchase of replacement equipment and supplies.
(Ord. No. 1721, § 4. Formerly Code 1986, § 3.14.190)
3.40.640 Administration.
The equipment rental fund shall be administered by the public works department which shall be responsible for keeping all maintenance records.
(Ord. No. 1721, § 5. Formerly Code 1986, § 3.14.200)
3.40.650 Transfer of rolling stock.
All rolling stock of the city except equipment which for economic or other reasons the city council determines should be assigned to a specific department shall be transferred to and maintained in the equipment rental fund.
(Ord. No. 1721, § 6. Formerly Code 1986, § 3.14.210)
3.40.660 Recovery of funds.
Recovery of funds shall be on a revolving basis. The public works department shall bill monthly each department of the city for all equipment rented by the department in the preceding month and for gasoline or other services provided and special equipment not owned by the equipment rental fund.
(Ord. No. 1721, § 7. Formerly Code 1986, § 3.14.220)
3.40.670 Rental rates.
The city council shall annually determine the rental rates to be charged by the equipment rental fund based on projected costs. The city council shall not be precluded from adjusting rental rates at any time during any calendar year should this become necessary or desirable.
(Ord. No. 1721, § 9. Formerly Code 1986, § 3.14.240)
PART 7. UNEMPLOYMENT TRUST FUND
3.40.700 Created.
There is created in the city a fund to be known as the unemployment trust fund.
(Ord. No. 2158, § 1. Formerly Code 1986, § 3.14.960)
Cross reference(s) – Personnel, Ch. 2.76 et seq.
3.40.710 Purpose.
The purpose of the unemployment trust fund is to receive periodic cash contributions from operating funds of the city to provide a source for payment of claims billed to the city by the State Employment Security Department.
(Ord. No. 2158, § 2. Formerly Code 1986, § 3.14.970)
3.40.720 Transfers.
Payment into the unemployment trust fund shall be made by means of transfers from the salary funds of each of the city’s departments which budget labor costs. Such transfers shall be in an amount which will provide a sufficient deposit into the fund to cover estimated unemployment claims against the city.
(Ord. No. 2158, § 3. Formerly Code 1986, § 3.14.980)
3.40.730 Payments.
Payments out of the unemployment trust fund shall be made upon the basis of billed claims from the State Employment Security Department.
(Ord. No. 2158, § 4. Formerly Code 1986, § 3.14.990)
PART 8. WORKER’S COMPENSATION FUND
3.40.800 Created.
There is created and established a special fund, to be designated and known as the worker’s compensation fund, into which monies shall be placed from time to time from available sources designated by the city administrator or provided for in the annual city budget. Monies placed in this fund may be used, and the appropriate administrative officials are authorized to expend such funds, for the following purposes:
1. Paying any liabilities of the city for compensation incurred as a self-insurer under this chapter;
2. Paying any premiums or other costs for reinsurance and surety bonds as may be authorized or required by Chapter 51.14 RCW;
3. Paying the city’s pro rata share of the state fund deficit as determined by the Director of the Department of Labor and Industries;
4. Maintaining a reserve for payment of compensation and assessments as required by Chapter 51.14 RCW;
5. Paying any other costs and expenses for the operation and maintenance of the self-insurance program established under this chapter.
(Ord. No. 2166, § 4. Formerly Code 1986, § 2.43.040)
PART 9. FIREMAN’S RELIEF AND PENSION FUND
3.40.900 Funds.
Working funds in the city which have been created under the authority of the Revised Code of Washington include the fireman’s relief and pension fund, RCW 41.16.050 and 41.18.010 et seq.
(Formerly Code 1986, § 3.14.1060)
Cross reference(s) – Fire department, Ch. 2.24.
PART 10. UTILITIES CLEARING FUND
3.40.1000 Created.
The utilities clearing fund is created as the fund into which utilities receipts are placed until they can be accurately allocated into the respective utilities fund, i.e., solid waste, water, and sewer, from which the revenues are originated.
(Ord. No. 1912, § 1. Formerly Code 1986, § 3.14.690)
Cross reference(s) – Application for and billing of utility services, Ch. 7.01; water services, Ch. 7.02; solid waste, recyclable materials, and yard waste, Ch. 7.03; sanitary sewers, Ch. 7.04.
PART 11. CASH BOND FUND
3.40.1100 Created.
There is created and established in the city a fund designated as the cash bond fund.
(Ord. No. 1559, § 1. Formerly Code 1986, § 3.14.110)
3.40.1110 Deposit and release.
Except as otherwise provided by law, in all cases where monies are deposited with the city for such purposes as guaranteeing performance or compliance with city ordinances, or as surety to insure compliance with city ordinances such funds shall be deposited in the cash bond fund and shall thereafter be held in such fund until their release is authorized pursuant to action of the city council at a regular meeting of the city council or pursuant to Ch. 3.43 KCC.
(Ord. No. 1559, § 2. Formerly Code 1986, § 3.14.120)
PART 12. HUMAN SERVICES FUND
3.40.1200 Created.
There is hereby established a city human services fund. Monies for the fund shall be received from:
1. Annual budget. General fund dollars allocated annually by the city council for funding of human service agencies.
2. Gifts, donations, and grants. Private or public gifts, endowments, donations, bequests, or other grants.
3. Other. Such other sources as may be available.
(Ord. No. 2773, § 1, 3-15-88)
Cross reference(s) – Human services commission, Ch. 2.53.
3.40.1210 Expenditures.
Expenditures from the human services fund shall be for support of human service needs within the city. Recommendations for expenditures shall be made by the human services commission for approval by the city council.
(Ord. No. 2773, § 1, 3-15-88)
PART 13. BOATING FACILITY FUND
3.40.1300 Created.
There is hereby established a city boating facility fund for the receipt of:
1. Vessel and personal watercraft launch fees collected under KCC 4.06.200.
2. Private or public gifts, endowments, donations, bequests, or other grants.
3. Such other funding sources as may be available.
(Ord. No. 3886, § 1, 8-5-08)
3.40.1310 Expenditures and disbursements.
Expenditures and disbursements made from the boating facility fund shall support boating needs within the city. Authorized disbursements that may be made from the boating facility fund include expenses to operate, maintain, improve, and enforce boating activities and facilities and aquatic resources within the city; to acquire land to expand boating facilities; to purchase replacement equipment and supplies; to recover the cost to collect boat launch fees within the city; and to pay for the cost of such other expenditures and disbursements as may be recommended by the parks, recreation, and community services director and approved by the city council.
(Ord. No. 3886, § 1, 8-5-08)