Title 3
REVENUE AND FINANCE¹

Chapters:

3.04 Budget

3.08 Bingo, Raffles and Amusement Games Tax

3.12 Leasehold Excise Tax

3.14 Lodging Tax

3.16 Real Estate Excise Tax

3.20 Sales and Use Tax

3.24 Utility Fund Tax

3.28 Contracts

3.32 Warrants

3.36 Surplus Property

3.40 Local Improvements

3.44 Funds

3.48 Bond and Obligation Registration

Chapter 3.04
BUDGET

Sections:

3.04.010 Establishment of two-year biennium budget.

3.04.020 Mid-biennial review and modification.

3.04.010 Establishment of two-year biennium budget.

Pursuant to RCW 35A.34.040, the city council hereby establishes a two-year biennium budget for the city of Sumner, beginning with the two-year biennium which begins January 1, 2009. The 2009-2010 biennial budget and all subsequent budgets shall be prepared, considered and adopted under the provisions of this chapter and chapter 35A.34 RCW which is hereby adopted by reference. (Ord. 2252 § 1, 2008)

3.04.020 Mid-biennial review and modification.

Pursuant to RCW 35A.34.130, the city council hereby provides for a mid-biennial review and modification of the biennial budget. No sooner than eight months after the start of the first year of the fiscal biennium, nor later than the first regularly scheduled city council meeting in November of the first year of each biennial budget, the city shall prepare proposed budget modifications to be effective as of January 1st of the following year. Such proposed modifications shall be sent to city council members and shall be a public record and available to the public. A public hearing shall be advertised at least once and shall be held at a city council meeting no later than the second Tuesday in December and may be continued from time to time. At such hearing or thereafter, council may consider a proposed ordinance to carry out such modifications, which such ordinance shall be subject to other provisions of chapter 35A.34 RCW. (Ord. 2252 § 2, 2008)

Chapter 3.08
BINGO, RAFFLES AND AMUSEMENT GAMES TAX

Sections:

3.08.010 Definitions.

3.08.020 Levied – Rate.

3.08.030 Remittance schedule.

3.08.040 Administration and collection.

3.08.050 Form of payment.

3.08.060 Delinquency.

3.08.070 Registration.

3.08.080 Registration after interruption.

3.08.090 Records – Inspection.

3.08.100 Refund or audit.

3.08.110 Determination by clerk-treasurer.

3.08.120 Other taxes unimpaired.

3.08.130 Debt status of tax.

3.08.140 Expiration of right of recovery.

3.08.150 Enforcement.

3.08.160 Violation – Penalty.

3.08.010 Definitions.

For the purpose of this chapter, the words and terms used shall have the same meaning each has under Chapter 218, Laws of 1973, 1st Ex. Sess. and chapter 9.46 RCW, each as amended, and under the rules of the Washington State Gambling Commission, chapter 230 WAC, unless otherwise specifically provided or as the context in which they are used clearly indicates that they be given some other meaning. (Ord. 1002 § 1, 1975. Prior code § 4.40.010)

3.08.020 Levied – Rate.

There is levied upon all persons, associations and organizations conducting or operating within the city any of the activities listed below a tax on the following amounts to be paid to the city:

A. Bingo and raffles, in the amount of five percent of the gross receipts therefrom after deducting the amount of money paid in cash and paid for merchandise actually awarded as prizes during the taxable period. Bona fide charitable or nonprofit organizations conducting such activities no more than once each calendar year and earning less than $10,000 gross annual revenue less the amount awarded as cash or merchandise prizes, from bingo or raffles therefrom shall be exempt from taxation under this chapter, but shall, nevertheless, file the declaration of intent required by SMC 3.08.070;

B. Punchboards or pull tabs, in the amount of two percent of the gross receipts directly from the operation of the punchboards or pull tabs themselves;

C. Amusement games in the amount of two percent of the gross receipts from the amusement game less the amount awarded in prizes during the taxable period. Bona fide charitable or nonprofit organizations conducting such activities no more than once each calendar year and earning less than $5,000 gross annual revenue less the amount awarded as cash or merchandise prizes therefrom shall be exempt from taxation under this chapter, but shall, nevertheless, file the declaration of intent required by SMC 3.08.070. (Ord. 2081 § 1, 2004; Ord. 1918 § 3, 2000: Ord. 1407 § 1, 1987; Ord. 1003 § 1, 1975; Ord. 1002 § 2, 1975. Prior Code § 4.40.020)

Code Reviser’s Note: Section 2 of Ord. 2081 provides as follows:

Sunset Clause. This ordinance will be in effect until December 31, 2004.

3.08.030 Remittance schedule.

The taxes imposed under this chapter shall be due and payable in monthly installments, and remittance therefor shall be made on or before the fifteenth day of the month next succeeding the end of the monthly period in which the tax accrued. The taxpayer shall on or before the fifteenth day of the month make out a return on such forms and setting forth such information as the clerk-treasurer may require showing the amount of the tax for which he is liable for the preceding monthly period, sign and transmit the same to the clerk-treasurer together with a remittance for such amount, provided:

A. Whenever any person, association or organization taxable under this chapter conducting or operating a taxable activity on a regular basis terminates the business, sells out or otherwise disposes of its business, any tax due under this chapter shall become due and payable, and such taxpayer shall within 10 days thereafter make a return and pay the tax due;

B. Whenever it appears to the clerk-treasurer that the collection of taxes from any person, association or organization may be in jeopardy, the clerk-treasurer, after not less than 10 days’ notice to the taxpayer, is authorized to require that the taxpayer remit taxes and returns at such shorter intervals than monthly,

as the clerk-treasurer deems appropriate under the circumstances. (Ord. 1002 § 3, 1975. Prior code § 4.40.030)

3.08.040 Administration and collection.

Administration and collection of the various taxes imposed by this chapter shall be the responsibility of the clerk-treasurer. The taxpayer shall be required to swear and affirm by signature that the information given in the return is true, accurate and complete under penalty of perjury. The clerk-treasurer is authorized but not required to mail to the taxpayer forms for returns. Failure of the taxpayer to receive such a form shall not excuse the taxpayer from making the return and timely paying all taxes due. The clerk-treasurer shall make forms available to the public in reasonable numbers in the clerk-treasurer’s office during regular business hours. Along with the tax remittance and return form for each month ending a calendar quarter year, each taxpayer shall submit to the clerk-treasurer a copy of his quarterly report to the Washington State Gambling Commission required by chapter 230-08 WAC as amended as of or after the effective date of the ordinance codified in this chapter. (Ord. 1002 § 4, 1975. Prior code § 4.40.040)

3.08.050 Form of payment.

Taxes payable under this chapter shall be remitted to the clerk-treasurer, on or before the time required, by bank draft, certified check, cashier’s check, personal check, money order or in cash. If payment is made by a draft or check, the tax shall not be deemed paid until the draft or check is accepted in the usual course of business, nor shall the acceptance of any sum by the clerk-treasurer be an acquittance or discharge of the tax unless the amount paid is the full amount due. The return and copy of the quarterly report to the Washington State Gambling Commission shall be filed in the office of the clerk-treasurer after notation of that office upon the return of the amount actually received. (Ord. 1002 § 5, 1975. Prior code § 4.40.050)

3.08.060 Delinquency.

A. If full payment of any tax or fee due under this chapter is not received by the clerk-treasurer on or before the date due, there shall be added to the amount due a penalty fee as follows:

1. 1 – 10 days late, 10 percent of tax due;

2. 11 – 21 days late, 15 percent of tax due;

3. 21 – 31 days late, 20 percent of tax due;

4. 31 – 60 days late, 25 percent of tax due.

B. In no event shall the penalty amount be less than $50.00. In addition to this penalty, the clerk-treasurer shall charge the taxpayer interest of eight percent of all taxes and fees due for each 30-day period or portion thereof that the amounts are past due. Failure to make payment in full of all tax amounts and penalties within 60 days following the day the tax amount initially became due is both a civil and a criminal violation of this section. (Ord. 1002 § 6, 1975. Prior code § 4.40.060)

3.08.070 Registration.

In order that the city may identify those persons that are subject to taxation under this chapter, each person, association or organization shall file with the clerk-treasurer a sworn declaration of intent to conduct an activity taxable under this chapter upon a form to be prescribed by the clerk-treasurer together with a copy of the license issued therefor by the Washington State Gambling Commission. The filing shall be made not later than 15 days prior to conducting or operating the taxable activity. No fee shall be charged for such filing which is not for the purpose of regulation of this activity but for the purpose of administration of this taxing chapter only. Failure to timely file shall not excuse any person, association or organization from tax liability. (Ord. 1002 § 7, 1975. Prior code § 4.40.070)

3.08.080 Registration after interruption.

A new declaration of intent to conduct or operate any of the activities taxable under this chapter shall be required prior to the recommencement of the activity following the expiration, suspension or revocation of any license previously issued by the Washington State Gambling Commission in the same manner as described in SMC 3.08.070. (Ord. 1002 § 8, 1975. Prior Code § 4.40.080)

3.08.090 Records – Inspection.

Each person, association or organization engaging in an activity taxable under this chapter shall maintain records respecting that activity which truly, completely and accurately disclose all information necessary to determine the taxpayer’s tax liability under this chapter during each base tax period. Such records shall be kept and maintained for a period of not less than three years. In addition, all information and items required by the Washington State Gambling Commission under chapter 230-08 WAC and the United States Internal Revenue Service respecting taxation shall be kept and maintained for the period required by those agencies. All books, records and other items required to be kept and maintained under this section shall be subject to and immediately made available for inspection and audit during normal business hours, without notice, at the place where such records are kept, on demand by the city council, the city attorney, or the clerk-treasurer, or their designees for the purpose of enforcing the provisions of this taxing chapter. Failure of a taxpayer to keep books and records as required by this section shall be a bar to contesting the assessment of taxes as estimated by the clerk-treasurer. Where a taxpayer does not keep all of the books, records or items required to be kept or maintained under this section in this jurisdiction so that the above-stated officials or their designees may examine them conveniently, the taxpayer shall either:

A. Produce all of the required books, records or items within the jurisdiction for such inspection within five days following a request of the above officials that he do so; or

B. Bear the actual cost of inspection by the above officials or their designees at the location where such books, records or items are located, provided that a taxpayer choosing to bear these costs shall pay in advance to the above-stated officials or their designees the estimated costs thereof, including, but not limited to, round-trip fare by the most rapid means, lodging, meals and incidental expenses. The actual amount due or to be refunded for expenses shall be determined following the examination of the records. (Ord. 1002 § 9, 1975. Prior code § 4.40.090)

3.08.100 Refund or audit.

If, upon application by a taxpayer for a refund or for an audit of his records or upon any examination of the returns or records of any taxpayer, it is determined by the clerk-treasurer that within three years immediately preceding receipt by the clerk-treasurer of the application by the taxpayer for a refund or an audit, in the absence of such an application within the three years immediately preceding the commencement by the clerk-treasurer of such examination:

A. A tax or other fee has been paid in excess of that properly due, the total excess paid over all amounts due to the county within such period of three years shall be credited to the taxpayer’s account or shall be refunded to the taxpayer at the taxpayer’s option. No refund or credit shall be allowed with respect to the clerk-treasurer for more than three years before the date of such application for examination;

B. A tax or other fee has been paid which is less than that properly due or no tax or other fee has been paid, the clerk-treasurer shall mail a statement by certified mail to the taxpayer showing the balance due including the tax amount or the penalty, assessments and fees, and it shall be a separate additional violation of this chapter if a taxpayer fails to make payment in full within 10 calendar days of such mailing. (Ord. 1002 § 10, 1975. Prior code § 4.40.100)

3.08.110 Determination by clerk-treasurer.

If any taxpayer fails, neglects or refuses to make and file his return as and when required under this chapter, the clerk-treasurer is authorized to determine the amount of tax payable together with any penalty and/or interest assessed under the provisions of this chapter and by certified mail to notify such taxpayer of the tax penalty and/or interest and shall become immediately due and payable. (Ord. 1002 § 11, 1975. Prior code § 4.40.110)

3.08.120 Other taxes unimpaired.

The tax levied in this chapter shall be additional to any license fee or tax imposed or levied under any law or any other ordinance of the city except as otherwise expressly provided in this chapter. (Ord. 1002 § 12, 1975. Prior code § 4.40.120)

3.08.130 Debt status of tax.

Any tax due and unpaid under this chapter and all penalties or fees shall constitute a debt to the city, a legal subdivision of the state of Washington, and may be collected by court proceedings the same as any other debt in like amount, which shall be in addition to all other existing remedies. (Ord. 1002 § 14, 1975. Prior code § 4.40.130)

3.08.140 Expiration of right of recovery.

The right of recovery by the city from the taxpayer for any tax provided under this chapter shall be outlawed after the expiration of three calendar years from the date the tax became due. The right of recovery against the city because of overpayment of tax by any taxpayer shall be outlawed after the expiration of three calendar years from the date such payment was made. (Ord. 1002 § 15, 1975. Prior code § 4.40.140)

3.08.150 Enforcement.

The clerk-treasurer shall have the power and it shall be his duty from time to time to adopt, publish and enforce rules and regulations not inconsistent with this chapter or with superior law for the purposes of carrying out the provisions of this chapter, and it is unlawful to violate or fail to comply with any such rule or regulation. (Ord. 1002 § 13, 1975. Prior code § 4.40.150)

3.08.160 Violation – Penalty.

Any person violating or failing to comply with any of the provisions of this chapter or any lawful rule or regulation adopted by the clerk-treasurer pursuant thereto, and upon conviction thereof, shall be punished by a fine in any sum not to exceed $300.00 or by imprisonment for a term not exceeding 90 days, or by both such fine and imprisonment. Any taxpayer who engages in or carries on any gambling activities subject to a tax under this chapter without having complied with the provisions of this chapter is guilty of a violation of this chapter for each day in which the gambling activity is carried on. (Ord. 1002 § 16, 1975. Prior code § 4.40.160)

Chapter 3.12
LEASEHOLD EXCISE TAX²

Sections:

3.12.010 Levied.

3.12.020 Rate.

3.12.030 Inspection of city records.

3.12.040 Exemptions.

3.12.050 Administration and collection – Generally.

3.12.060 Administration and collection – Contract with state.

3.12.010 Levied.

There is levied and shall be collected, a leasehold excise tax on and after January 1, 1976, upon the act or privilege of occupying or using publicly owned real or personal property within the city of Sumner through a “leasehold interest” as defined by Section 2, Chapter 61, Laws of 1975-76, Second Extraordinary Session (hereafter “the state act”). The tax shall be paid, collected, and remitted to the Department of Revenue of the state of Washington at the time and in the manner prescribed by Section 5 of the state act. (Ord. 1018 § 1, 1976. Prior code § 4.31.010)

3.12.020 Rate.

The rate of the tax imposed by SMC 3.12.010 shall be four percent of the taxable rent (as defined by Section 2 of the state act); provided, that the following credits shall be allowed in determining the tax payable:

A. With respect to a leasehold interest arising out of any lease or agreement, the terms of which were binding on the lessee prior to July 1, 1970, where such lease or agreement has not been renegotiated (as defined by Section 2 of the state act) since that date, and excluding from such credit (1) any leasehold interest arising out of any lease of property covered by the provisions of RCW 28B.20.394 and (2) any lease or agreement including options to renew which extends beyond January 1, 1958, as follows:

1. With respect to taxes due in calendar year 1976, a credit equal to 80 percent of the tax produced by the above rate,

2. With respect to taxes due in calendar year 1977, a credit equal to 60 percent of the tax produced by the above rate,

3. With respect to taxes due in calendar year 1978, a credit equal to 40 percent of the tax produced by the above rate,

4. With respect to taxes due in calendar year 1979, a credit equal to 20 percent of the tax produced by the above rate;

B. With respect to a product lease (as defined by Section 2 of the state act), a credit of 33 percent of the tax produced by the above rate. (Ord. 1018 § 2, 1976. Prior code § 4.31.020)

3.12.030 Inspection of city records.

The city consents to the inspection of such records as are necessary to qualify the city for inspection of records of the Department of Revenue pursuant to RCW 82.32.330. (Ord. 1018 § 5, 1976. Prior code § 4.31.030)

3.12.040 Exemptions.

Leasehold interests exempted by Section 13 of the state act as it now exists or may hereafter be amended shall be exempt from the tax imposed pursuant to SMC 3.12.010. (Ord. 1018 § 4, 1976. Prior Code § 4.31.040)

3.12.050 Administration and collection – Generally.

The administration and collection of the tax imposed by this chapter shall be in accordance with the provisions of the state act. (Ord. 1018 § 3, 1976. Prior code § 4.31.050)

3.12.060 Administration and collection – Contract with state.

The mayor of the city is authorized to execute a contract with the Department of Revenue of the state of Washington for the administration and collection of the tax imposed by SMC 3.12.010; provided, that the city attorney shall first approve the form and content of the contract. (Ord. 1018 § 6, 1976. Prior Code § 4.31.060)

Chapter 3.14
LODGING TAX

Sections:

3.14.010 Levied – Rate.

3.14.020 Definitions.

3.14.030 Tax additional to other fees and taxes.

3.14.040 Tourism fund – Created – Purpose.

3.14.050 Administration and collection.

3.14.060 Violation – Penalty.

3.14.010 Levied – Rate.

There is levied a special excise tax of up to seven percent to match the amount established and adopted by Pierce County on the sale of or charge made for the furnishing of lodging by a hotel, rooming house, tourist court, motel or trailer camp, and the granting of any similar license to use real property, as distinguished from the renting or leasing of real property; provided, that it shall be presumed that the occupancy of real property for a continuous period of one month or more constitutes a rental or lease of real property and not a mere license to use or to enjoy the same. (Ord. 1862 § 1, 1998: Ord. 1381 § 1 (part), 1987)

3.14.020 Definitions.

The definitions of “selling price,” “buyer,” “consumer” and all other definitions as are contained in RCW 82.08.010 as of the effective date of the ordinance codified in this chapter, are adopted as the definitions for the tax levied herein. (Ord. 1381 § 1 (part), 1987)

3.14.030 Tax additional to other fees and taxes.

The tax levied in this chapter shall be in addition to any license fee or any tax imposed or levied under any law or any other ordinance of the city. (Ord. 1381 § 1 (part), 1987)

3.14.040 Tourism fund – Created – Purpose.

There is created a special fund in the treasury of the city to be known as the tourism fund. All such taxes collected herein shall be placed in said special fund for the purpose of tourism promotion or capital facilities that promote tourism as prescribed in RCW 67.28.180. (Ord. 1862 § 2, 1998: Ord. 1381 § 1 (part), 1987)

3.14.050 Administration and collection.

For the purposes of the tax levied in this chapter:

A. The Department of Revenue of the state of Washington is designated as the necessary agent of the city for the purpose of collection and administration.

B. The administrative provisions contained in chapters 82.08 and 82.32 RCW shall apply with respect to administration and collection by the Department of Revenue of the state of Washington.

C. All rules and regulations adopted by the Department of Revenue of the state of Washington for the administration of chapter 82.08 RCW are adopted.

D. The Department of Revenue of the state of Washington is empowered, on behalf of the city, to prescribe such special forms and reporting procedures as the Department of Revenue may deem necessary. (Ord. 1381 § 1 (part), 1987)

3.14.060 Violation – Penalty.

Any person, firm or corporation violating any of the provisions of this chapter is guilty of a misdemeanor and, upon conviction, shall be punished by a fine of not to exceed $1,000, or by imprisonment in jail for not to exceed 90 days, or by both such fine and imprisonment.

Each day a violation continues shall be considered as a separate offense. (Ord. 1381 § 1 (part), 1987)

Chapter 3.16
REAL ESTATE EXCISE TAX³

Sections:

3.16.010 Imposed – Rate.

3.16.020 Applicability.

3.16.030 Compliance with state law and rules.

3.16.040 Costs of collection.

3.16.050 Obligation to pay.

3.16.060 Lien status.

3.16.070 Payment to county.

3.16.080 Due date.

3.16.090 Refund.

3.16.100 Additional real estate excise tax.

3.16.010 Imposed – Rate.

There is imposed a tax of one-quarter of one percent of the selling price on each sale of real property within the corporate limits of the city. (Ord. 1323 § 1, 1985)

3.16.020 Applicability.

Taxes imposed in this chapter shall be collected from persons who are taxable by the state under chapter 82.45 RCW and chapter 458-61 WAC upon the occurrence of any taxable event within the corporate limits of the city. (Ord. 1323 § 2, 1985)

3.16.030 Compliance with state law and rules.

The taxes imposed in this chapter shall comply with all applicable rules, regulations, laws and court decisions regarding real estate excise taxes as imposed by the state under chapter 82.45 RCW and chapter 458-61 WAC. The provisions of those chapters, to the extent they are not inconsistent with this chapter, shall apply as though fully set forth in this chapter. (Ord. 1323 § 3, 1985)

3.16.040 Costs of collection.

The Pierce County treasurer shall place one percent of the proceeds of the taxes imposed in this chapter in the county current expense fund to defray costs of collection. The remaining proceeds of the taxes imposed herein shall be distributed to the city monthly and those taxes imposed under SMC 3.16.010 shall be placed by the clerk-treasurer in municipal capital improvement funds. (Ord. 1323 § 4, 1985)

3.16.050 Obligation to pay.

The taxes imposed in this chapter are the obligation of the seller and may be enforced through the action of debt against the seller or in the manner prescribed for the foreclosure of mortgages. (Ord. 1323 § 5, 1985)

3.16.060 Lien status.

The taxes imposed herein and any interest or penalties thereon are the specific lien upon each piece of real property sold from time of sale or until the tax is paid, which lien may be enforced in the manner prescribed for the foreclosure of mortgages. Resort to one course of enforcement is not an election not to pursue the other. (Ord. 1323 § 6, 1985)

3.16.070 Payment to county.

The taxes imposed in this chapter shall be paid to and collected by the Pierce County treasurer on the real property sold within the corporate limits of the city. The Pierce County treasurer shall act as agent for the city. The Pierce County treasurer shall cause a stamp evidencing satisfaction of the lien to be affixed to the instrument of sale or conveyance prior to its recording or to the real estate excise tax affidavit in the case of used mobile home sales. A receipt issued by the Pierce County treasurer for the payment of the tax imposed herein shall be evidence of the satisfaction of lien imposed in SMC 3.16.060 and may be recorded in the manner prescribed for recording satisfactions of mortgages. No instrument of sale or conveyance evidencing a sale subject to the tax may be accepted by the Pierce County auditor for filing or recording until the tax is paid and the stamp affixed thereto; in case the tax is not due on the transfer, the instrument shall not be accepted until suitable notation of this fact is made on the instrument by the Pierce County treasurer. (Ord. 1323 § 7, 1985)

3.16.080 Due date.

The tax imposed under this chapter shall become due and payable immediately at the time of sale, and if not so paid within 30 days thereafter, shall bear interest at the rate of one percent per month from the time of sale until the date of payment. (Ord. 1323 § 8, 1985)

3.16.090 Refund.

If, upon written application by a taxpayer to the county treasurer for a refund, it appears a tax has been paid in excess of the amount actually due or upon a sale or other transfer declared to be exempt, such excess of the amount actually due or upon a sale or other transfer declared to be exempt, such excess amount or improper payment shall be refunded by the Pierce County treasurer to the taxpayer; provided, that no refund shall be made unless the state has first authorized the refund of an excessive amount or an improper amount paid, unless such improper amount was paid as a result of a miscalculation. Any refund made shall be withheld from the next monthly distribution to the city. (Ord. 1323 § 9, 1985)

3.16.100 Additional real estate excise tax.

In accordance with RCW 82.46.035, and in addition to the excise tax on the sale of real property imposed by SMC 3.16.010 and 3.16.020, there is hereby imposed an excise tax on each sale of real property located within the corporate limits of the city of Sumner at the rate of one quarter of one percent of the selling price to be collected by the county as prescribed in RCW 82.46.060. Proceeds from this additional tax shall be deposited in a separate account in the municipal capital improvements fund and expended as authorized by law under RCW 82.46.035(5). (Ord. 1855 § 1, 1998)

Chapter 3.20
SALES AND USE TAX⁴

Sections:

Article I. Basic Sales or Use Tax

3.20.010 Imposed – Collection.

3.20.020 Rate.

3.20.030 Administration – Collection.

3.20.040 Inspection of city records.

3.20.050 Contract with state.

3.20.060 Violation – Penalty.

Article II. Additional Sales or Use Tax

3.20.070 Imposed.

3.20.080 Rate.

3.20.090 Administration and collection.

3.20.100 Inspection of city records.

3.20.110 Contract with state.

3.20.120 Violation – Penalty.

3.20.130 Special initiative.

Article I. Basic Sales or Use Tax

3.20.010 Imposed – Collection.

There is imposed a sales or use tax, as the case may be, upon every taxable event, as defined in Section 3, Chapter 94, Laws of 1970, First Extraordinary Session, occurring within the city. The tax shall be imposed upon and collected from those persons from whom the state sales or use tax is collected pursuant to chapters 82.08 and 82.12 RCW. (Ord. 904 § 1, 1970. Prior code § 4.30.010)

3.20.020 Rate.

The rate of the tax imposed by SMC 3.20.010 shall be a rate not to exceed one-half of one percent of the selling price or value of the article used, as the case may be; provided, however, that during such period as there is in effect a sales or use tax imposed by Pierce County, the rate of tax imposed by this article shall be a rate not to exceed four hundred twenty-five/one-thousandths of one percent. (Ord. 904 § 2, 1970. Prior Code § 4.30.020)

3.20.030 Administration – Collection.

The administration and collection of the tax imposed by this article shall be in accordance with the provisions of Section 6, Chapter 94, Laws of 1970, First Extraordinary Session. (Ord. 904 § 3, 1970. Prior code § 4.30.030)

3.20.040 Inspection of city records.

The city consents to the inspection of such records as are necessary to qualify the city for inspection of records of the Department of Revenue, pursuant to RCW 82.32.330. (Ord. 904 § 4, 1970. Prior code § 4.30.040)

3.20.050 Contract with state.

The proper officials of the city are authorized to enter into the contract with the Department of Revenue for administration of the tax. (Ord. 904 § 5, 1970. Prior code § 4.30.050)

3.20.060 Violation – Penalty.

Any seller who fails or refuses to collect the tax as required with the intent to violate the provisions of this article or to gain some advantage or benefit, either direct or indirect, and any buyer who refuses to pay any tax due under this article is guilty of a misdemeanor and upon conviction thereof shall be punished by a fine not exceeding $300.00. (Ord. 1075 § 15, 1978: Ord. 904 § 6, 1970. Prior code § 4.30.060)

Article II. Additional Sales or Use Tax

3.20.070 Imposed.

There is fixed and imposed a sales or use tax, as the case may be, upon every taxable event, as authorized in RCW 82.14.030(2), occurring within the city. The tax shall be imposed upon and collected from those persons from whom the state sales or use tax is collected pursuant to chapters 82.08 and 82.12 RCW. (Ord. 1200 § 1, 1982)

3.20.080 Rate.

The rate of the tax imposed by SMC 3.20.070 shall be five-tenths of one percent of the selling price, in the case of a sales tax, or value of the article used, in the case of a use tax; provided, however, that during such period as there is in effect a sales or use tax imposed by Pierce County pursuant to RCW 82.14.030(2), the rate of tax imposed by SMC 3.20.070 shall be equal to the rate of tax imposed by Pierce County pursuant to RCW 82.14.030(2). (Ord. 1200 § 2, 1982)

3.20.090 Administration and collection.

The administration and collection of the tax imposed by this article shall be in accordance with the provisions of RCW 82.14.030(2). (Ord. 1200 § 3, 1982)

3.20.100 Inspection of city records.

The city consents to the inspection of such records as are necessary to qualify the city for inspection of records of the Department of Revenue, pursuant to RCW 82.32.330. (Ord. 1200 § 4, 1982)

3.20.110 Contract with state.

The proper officials of the city are hereby authorized to enter into a contract with the Department of Revenue for administration of the tax. (Ord. 1200 § 5, 1982)

3.20.120 Violation – Penalty.

Any seller who fails or refuses to collect the tax as required with the intent to violate the provisions of this article or to gain some advantage or benefit, either direct or indirect, and any buyer who refuses to pay any tax due under this article shall be guilty of a misdemeanor and upon conviction thereof shall be punished by a fine of not more than $500.00 or by imprisonment in the city jail for a term not to exceed six months, or by such fine and imprisonment. (Ord. 1200 § 6, 1982)

3.20.130 Special initiative.

The ordinance codified in this article shall be effective five days from and after its passage, approval and publication as required by law. This article shall be subject to a special initiative. The number of registered voters needed to sign a petition for special initiative shall be 15 percent of the total number of names of persons listed as registered voters within the city on the day of the last preceding municipal general election. If a special initiative petition is filed with the city council, the operation of this article shall not be suspended pending a final decision on the disposition of the special initiative. The procedures for initiative contained in RCW 35A.11.100 shall apply to any such special initiative petition. (Ord. 1207 § 1, 1982: Ord. 1205 § 1, 1982: Ord. 1200 § 7, 1982)

Chapter 3.24
UTILITY FUND TAX

Sections:

3.24.010 Imposed.

3.24.020 Levy and collection.

3.24.010 Imposed.

There is created a tax in the amount of six percent per year chargeable monthly, commencing January 1, 1979, against and upon the total monthly revenues of the water-sewer fund and the refuse funds of the city. (Ord. 1089 § 1, 1978: Ord. 967 § 1, 1974: Ord. 704 § 1, 1961. Prior code § 4.09.010)

3.24.020 Levy and collection.

Commencing January 1, 1979, there is levied a tax of six percent per year on the revenues of the water-sewer fund and refuse fund of the city, which tax shall be levied upon and collected from the monthly revenues of the water-sewer fund and the refuse fund for the benefit of the current expense fund of the city. The finance officer is directed to collect the tax out of the monthly revenues received by the water-sewer fund and the refuse fund, and is further directed to pay the moneys collected into the current expense fund of the city. (Ord. 1089 § 2, 1978: Ord. 967 § 2, 1974: Ord. 704 § 2, 1961. Prior code § 4.09.020)

Chapter 3.28
CONTRACTS

Sections:

3.28.010 Advertisement for sealed bids.

3.28.010 Advertisement for sealed bids.

When public work for the city is to be done on contract, an advertisement for bids from contractors shall be given by the clerk-treasurer by publishing the advertisement for two consecutive weeks in the official town newspaper, and also in such other newspaper or newspapers as the council may in any specific instance direct. Such advertisement shall call for sealed bids and require that each bid be accompanied by a certified check for not less than five percent the amount of the bid, and state that no bid will be considered unless accompanied by such check, and the advertisement shall state the time until which bids will be received by the clerk-treasurer, which time shall be at 5:00 p.m. in the afternoon of the date of the meeting of the city council, either regular or special, next after the last publication of the notice in the official newspaper. (Ord. 260 § 1, 1921. Prior code § 1.24.010)

Chapter 3.32
WARRANTS

Sections:

3.32.010 Call and payment.

3.32.020 Stubs – Form.

3.32.010 Call and payment.

The clerk-treasurer is authorized and directed to call in all outstanding warrants against the city and pay the same in the manner provided by the law. (Ord. 285 § 1, 1922. Prior code § 1.26.010)

3.32.020 Stubs – Form.

Warrants on the clerk-treasurer shall be with the stubs annexed thereto in the following manner:

Stub

No. _____

Date ____

To whom issued _________________

For what purpose ________________

Payable by City of Sumner _________

Amount $______________________

Warrant

No. ____

Date ____ Sumner, Pierce County, Washington

$________

The Treasurer of the City of Sumner will pay to ______ or order ________$_____ for_______________________________

Attest Mayor of the City of Sumner

___________________

City Clerk

(Ord. 3 § 3, 1891. Prior code § 1.26.020)

Chapter 3.36
SURPLUS PROPERTY

Sections:

Article I. Real Property

3.36.010 Authority to sell.

3.36.020 Minimum price.

3.36.030 Competitive bidding required – Exceptions.

3.36.040 Advertising and posting.

3.36.050 Advertising requirements.

3.36.060 Consideration of bids.

Article II. Personal Property

3.36.070 Authority to sell.

3.36.080 Trade-in.

3.36.090 Minimum price.

3.36.100 Competitive bidding required – Exceptions.

3.36.110 Advertising and posting.

3.36.120 Advertising requirements.

3.36.130 Consideration of bids.

3.36.140 Cash sales required – Exceptions.

Article I. Real Property

3.36.010 Authority to sell.

Whenever it appears to the city council that it is for the best interest of the city and the people thereof that real property belonging to the city should be sold, the city council shall sell and convey such property under the limitations and restrictions and in the manner provided in this article. (Ord. 1255 § 1, 1984)

3.36.020 Minimum price.

The city council shall fix a minimum price at which such real property may be sold. No sale shall be made unless at least the minimum price fixed by the council is bid. (Ord. 1255 § 2, 1984)

3.36.030 Competitive bidding required – Exceptions.

The clerk-treasurer shall advertise for written competitive bids on any sale of real property except as follows:

A. When selling to a governmental agency;

B. When the city council, setting forth the facts by resolution, has declared an emergency to exist. (Ord. 1255 § 3, 1984)

3.36.040 Advertising and posting.

The clerk-treasurer shall publish an advertisement for bids on the sale of real property once each week for two consecutive weeks in the official newspaper of the city. In addition thereto, the clerk-treasurer shall also post the advertisement in three public places in the city. Both the posting and the date of the last publication shall be at least five calendar days before the final date for submitting the bids. (Ord. 1255 § 4, 1984)

3.36.050 Advertising requirements.

The advertisement for bids shall particularly describe the property or portion thereof proposed to be sold and when and where the bids are to be submitted, shall designate the place and the time that the bids will be opened, shall set forth the minimum price established by the city council and shall set forth the terms of the sale. (Ord. 1255 § 5, 1984)

3.36.060 Consideration of bids.

The bids shall be opened in public at the time and place stated in the advertisement for bids. The city council may reject any or all bids, or the bid for any one or more of the parcels of real property included in the advertisement for bids. (Ord. 1255 § 6, 1984)

Article II. Personal Property

3.36.070 Authority to sell.

The city council may authorize the sale or disposal of personal property of the city, including supplies, materials and equipment, if the city council finds that such property is surplus to the foreseeable needs of the city. In the event the value of the personal property exceeds $400.00, it shall be sold either by written competitive bids or by public auction. In the event the value of the personal property is $400.00 or less, it may be sold or disposed of by informal procedures to the best interests of the city. (Ord. 1255 § 7, 1984)

3.36.080 Trade-in.

A. The city council may direct either the sale or the trade-in of used personal property upon the purchase of new, similar personal property.

B. If the city council elects to trade in used personal property it shall include in a call for bids for the new equipment a notice that the city has for sale or trade-in used equipment of a specific type and description which will be sold or traded in on the same day and hour that bids on the new equipment are opened. Any bidder on the new equipment may include in his offer to sell, an offer to accept the used equipment as a part payment of the new equipment purchase price, setting forth the amount of such allowance.

C. Persons wishing to bid on the purchase of the used property only, may submit a bid for such purchase independent of a bid on the new equipment.

D. In determining the lowest and best bid on the new equipment, the city council shall consider the net cost to the city of such new equipment after trade-in allowances have been deducted.

E. The city council may accept the new equipment bid of any bidder, without trading in the old equipment, but may not require any bidder to purchase the used equipment without awarding the bidder the new equipment contract.

F. The city council may accept an independent offer to purchase the used equipment rather than allowing a trade-in, if that is the most cost effective to the city. (Ord. 1255 § 8, 1984)

3.36.090 Minimum price.

The city council may fix a minimum price at which such property may be sold. No sale shall be made unless the minimum price fixed by the city council is bid. (Ord. 1255 § 9, 1984)

3.36.100 Competitive bidding required – Exceptions.

The clerk-treasurer shall advertise for competitive bids on any sale of personal property except as follows:

A. When selling to a governmental agency;

B. When personal property to be disposed of is to be traded in upon the purchase of a like article;

C. When the city council, setting forth the facts, has declared an emergency to exist;

D. When the value of personal property is $400.00 or less and is to be disposed of by informal procedures. (Ord. 1255 § 10, 1984)

3.36.110 Advertising and posting.

The clerk-treasurer shall publish an advertisement for bids on the sale of the personal property once each week for two consecutive weeks in the official newspaper of the city and shall also post said advertisement in three public places in the city. Both the posting and the date of the last publication shall be at least five calendar days before the final date for submitting the bids. (Ord. 1255 § 11, 1984)

3.36.120 Advertising requirements.

The advertisement for bids shall particularly describe the property to be sold or shall refer to the approved specifications on file in the office of the clerk-treasurer and designate the place and the time of the auction; or, upon sealed bids, when and where the bids are to be submitted, shall designate the place and the time that the bids will be opened, shall set forth the minimum price established by the city council and shall set forth the terms of the sale. (Ord. 1255 § 12, 1984)

3.36.130 Consideration of bids.

If the sale is upon sealed bids, the bids shall be opened in public at the time and place stated in the advertisement for bids. The city council may reject any or all bids, or the bid for any one or more of the articles included in the advertisement for bids. (Ord. 1255 § 13, 1984)

3.36.140 Cash sales required – Exceptions.

Sales of personal property must be for cash except as follows:

A. When property is transferred to a governmental agency;

B. When the city property is to be traded in on the purchase of a like article, in which case the proposed cash allowance for the trade-in must be a part of the proposition to be submitted by the seller in the transaction. (Ord. 1255 § 14, 1984)

Chapter 3.40
LOCAL IMPROVEMENTS⁵

Sections:

3.40.010 Compliance with state law.

3.40.020 Initiation and order.

3.40.030 Local improvement district.

3.40.040 Performance by city or bidder.

3.40.050 Distribution and assessment of costs.

3.40.060 Bonds – Authorized.

3.40.070 Bonds – Sale – Issuance to contractor.

3.40.080 Warrants.

3.40.090 Funds – Collection of assessments.

3.40.100 Installment payment.

3.40.110 Repealed.

3.40.120 Delinquent assessment – Foreclosure.

3.40.130 Bonds for unpaid assessments.

3.40.140 Form of bonds.

3.40.150 Applicability of state law.

3.40.010 Compliance with state law.

Whenever the city council of the city provides for making local improvements and for paying the whole or any portion of the cost and expense thereof by levying and collecting special assessments on property especially benefitted, the proceedings therefor shall be in accordance with the provisions of an act of the legislature of the state of Washington, entitled “An act relating to local improvements in cities and towns and repealing certain acts and parts of acts,” approved March 17, 1911, and act amendatory thereof (being chapters 35.43, 35.44, 35.45, 35.49, 35.50 and 35.53 RCW), and the provisions of this chapter and ordinances amendatory thereof. (Ord. 563 § 1, 1953. Prior code § 8.02.010)

3.40.020 Initiation and order.

Any such improvement may be initiated either upon petition or by resolution therefor, but such improvement may be ordered only by ordinance.

A. In case the improvement is initiated by petition, such petition shall be presented to and filed with the city clerk, or such other officer as may be designated by the city council. The city engineer shall thereupon examine such petition, determine the sufficiency thereof, and ascertain if the facts therein stated are true and shall cause an estimate of the cost and expense of such improvement to be made and shall transmit the same to the city council together with all papers and information in his possession regarding the same, together with his recommendations thereon and a description of the boundaries of the district and a statement of the proportionate amount of the cost and expense of such improvement which shall be borne by property within the proposed assessment district and a statement of the aggregate assessed valuation of the real estate, exclusive of the improvements, in such district according to the valuation last placed upon it for purpose of general taxation, together with all other outstanding and unpaid local improvement assessments against the property included in the district, excluding penalties and interest; and in case the petition is sufficient, shall also submit a diagram showing thereon the lots, tracts or parcels of land and other property which will be especially benefitted thereby and the estimated amount of the costs and expense of such improvement to be borne by each lot, tract or parcel of property.

B. The city council may initiate such improvement directly by resolution declaring its intention to order such improvement and setting forth the nature and territorial extent thereof and notifying all persons who may desire to object thereto to appear and present such objections at a meeting of the city council at the time specified in such resolution. Such resolution shall be published in at least two consecutive issues of the official newspaper of the city and the date of hearing thereon shall be at least 15 days after the date of the first publication of the same. The city engineer shall submit to the city council at or prior to the date fixed for such hearing, the same date and information required to be submitted in the case of a petition.

C. The city council may, by ordinance, authorize the making of any such improvement and, in case of an improvement initiated by resolution of the city council, such ordinance may be passed on or at any time after the date of the hearing specified in the resolution. (Ord. 1718 § 1, 1995; Ord. 563 § 2, 1953. Prior code § 8.02.020)

3.40.030 Local improvement district.

A. Every ordinance ordering a local improvement to be paid in whole or in part by assessments against the property specially benefitted shall establish a local improvement district to be known as “Local Improvement District No. ____,” which shall embrace as nearly as practicable all the property specially benefitted by the improvement.

B. Unless otherwise provided in the ordinance ordering the improvement, the improvement district shall include all the property between the termini of the improvement abutting upon, adjacent, vicinal, or proximate to the street, avenue, lane, alley, boulevard, park drive, parkway, public place or square proposed to be improved to a distance of 90 feet back from the marginal lines thereof or to the center line of the blocks facing or abutting thereon, whichever is greater (in the case of unplatted property, the distance back shall be the same as in the platted property immediately adjacent thereto); provided, that if the local improvement is such that the special benefits resulting therefrom extend beyond the boundaries as above set forth, the council may create an enlarged district to include as nearly as practicable all the property to be specially benefitted by the improvement; the petition or resolution for an enlarged district and all proceedings pursuant thereto shall conform as nearly as is practicable to the provisions relating to local improvement districts generally except that the petition or resolution must describe it as an enlarged district and state what proportion of the amount to be charged to property specially benefitted shall be charged to the property lying between the termini of the proposed improvement and extending back from the marginal lines thereof to the middle of the block (or 90 feet back) on each side thereof, and what proportion thereof to the remainder of the enlarged district; provided further, that whenever the nature of the improvement is such that the special benefits conferred on the property are not fairly reflected by the use of the aforesaid termini and zone method, the ordinance ordering the improvement may provide that the assessment shall be made against the property of the district in accordance with the special benefits it will derive from the improvement without regard to the zone and termini method. (Ord. 563 § 3, 1953. Prior code § 8.02.030)

3.40.040 Performance by city or bidder.

All local improvements, funds for the making of which are derived in whole or in part from assessments upon property specially benefitted, shall be made either by the city itself, or by contract upon competitive bids in the manner provided by law. The city council shall determine whether such local improvement shall be done by contract or the city itself. (Ord. 563 § 4, 1953. Prior code § 8.02.040)

3.40.050 Distribution and assessment of costs.

The cost and expense of any such improvement shall be distributed and assessed against all the property included in such local improvement district, in accordance with the special benefits conferred thereon, and in the manner provided by law. (Ord. 563 § 5, 1953. Prior code § 8.02.050)

3.40.060 Bonds – Authorized.

The city council may provide by ordinance for the payment of the whole or any portion of the cost and expense of any local improvement by bonds of the improvement district, but no bonds shall be issued in excess of the cost and expense of the improvement, nor shall they be issued prior to 20 days after the 30 days allowed for the payment of assessments without penalty or interest. (Ord. 563 § 6, 1953. Prior code § 8.02.060)

3.40.070 Bonds – Sale – Issuance to contractor.

A. Local improvement bonds may be issued to the contractor or sold by the officers authorized by the ordinance directing their issue to do so, in the manner prescribed therein, and at not less than par and accrued interest. Any portion of the bonds of any issue remaining unsold may be issued to the contractor constructing the improvement in payment thereof.

B. The proceeds of all sales of bonds shall be applied in payment of the cost and expense of the improvement. (Ord. 563 § 7, 1953. Prior code § 8.02.070)

3.40.080 Warrants.

A. The city council may provide by ordinance for the issuance of warrants in payment of the cost and expense of any local improvement, payable out of the local improvement district fund. The warrants shall bear interest at the rate of not to exceed eight percent per annum and shall be redeemed either in cash or by local improvement bonds for the same improvement authorized by ordinance.

B. All warrants against any local improvement fund sold by the city or issued to a contractor and by him sold or hypothecated for a valuable consideration shall be claims and liens against the improvement fund against which they are drawn prior and superior to any right, lien, or claim of any surety upon the bond or bonds given to the city by or for the contractor to secure the performance of this contract or to secure the payment of persons who have performed work thereon, furnished materials therefor, or provisions and supplies for the carrying on of the work. (Ord. 563 § 8, 1953. Prior code § 8.02.080)

3.40.090 Funds – Collection of assessments.

A. All assessments for local improvements shall be collected by the city treasurer and shall be kept in a separate fund to be known as “Local Improvement Fund, District No. ___” and shall be used for no other purpose than the redemption of warrants drawn upon and bonds issued against the fund to provide payment for the cost and expense of the improvement.

B. As soon as the assessment roll has been placed in the hands of the city treasurer for collection, he/she shall publish a notice in the official newspaper of the city for 10 consecutive daily or two consecutive weekly issues, that the roll is in his hands for collection and that any assessment may be paid within 30 days from the date of the first publication of the notice without penalty, interest or costs. (Ord. 1718 § 2, 1995: Ord. 563 § 9, 1953. Prior code § 8.02.090)

3.40.100 Installment payment.

In all cases where bonds are issued to pay the cost and expense of a local improvement, the ordinance levying the assessments shall provide that the sum charged against any lot, tract, and parcel of land or other property, or any portion thereof, may be paid during the 30-day period allowed for the payment of assessments without penalty or interest and that thereafter the sum remaining unpaid may be paid in equal annual installments. The number of installments shall be less by two than the number of years which the bonds issued to pay for the improvement are to run. Interest on the whole amount unpaid at the rate fixed by the ordinance shall be due on the due date of the first installment of principal and each year thereafter on the due date of each installment of principal. The first installment shall become due and payable during the 30-day period succeeding a date one year after the date of first publication of the city treasurer’s notice, and annually thereafter each succeeding installment shall become due and payable in like manner. If the whole or any portion of any assessment remain unpaid after the first 30-day period herein provided for, interest upon the whole unpaid sum shall be charged at the rate fixed in the ordinance providing for such improvement and each year thereafter one of said installments, together with interest due upon the whole of the unpaid balance shall be collected. Any installment not paid prior to the expiration of the 30-day period during which such installment is due and payable, shall thereupon become delinquent. All delinquent installments shall be subject to a charge for interest at the bond rate and to an additional charge of five percent penalty levied upon both principal and interest due on such installment or installments. (Ord. 1718 § 3, 1995: Ord. 563 § 10, 1953. Prior code § 8.02.100)

3.40.110 Delinquent assessment – Certificate.

Repealed by Ord. 1718. (Ord. 389 § 1, 1930. Prior code § 8.04.010)

3.40.120 Delinquent assessment – Foreclosure.

If, on the first day of January in any year two installments of any local improvement assessment are delinquent, or if the final installment thereof has been delinquent for more than one year, then the city attorney is authorized to commence foreclosure proceedings on the delinquent assessment or delinquent installments by an appropriate action on behalf of the city in Pierce County superior court. The foreclosure proceeding shall be in accordance with the provisions of chapter 35.50 RCW, as now exists or as may hereafter be amended. Such foreclosure proceeding shall be commenced on or before June 1st of said year. (Ord. 1718 § 4, 1995: Ord. 389 § 2, 1930. Prior code § 8.04.020)

3.40.130 Bonds for unpaid assessments.

In case the improvement is made on the bond installment plan, the city treasurer shall, at the expiration of 30 days after the first publication of the notice to pay assessment, report to the city council the amount collected by him/her upon the roll and shall specify in the report the amount remaining unpaid upon the roll, and the city council may then, or at a subsequent meeting, by ordinance, direct the mayor and city clerk to issue the bonds on the local improvement district established by the ordinance ordering the improvement in an amount equal to the amount remaining unpaid on the assessment. The ordinance shall specify the denomination of the bonds which, except for bond numbered “one,” shall be in multiples of $100.00 each. (Ord. 1718 § 5, 1995: Ord. 563 § 11, 1953. Prior code § 8.02.110)

3.40.140 Form of bonds.

A. All bonds, unless otherwise specially ordered by the council, issued in pursuance of the provisions of this chapter, may be in substantially the following form:

Bond No. ____ $____

UNITED STATES OF AMERICA STATE OF WASHINGTON

LOCAL IMPROVEMENT BOND

CITY OF SUMNER LOCAL IMPROVEMENT DISTRICT NO. __

N.B. This bond is issued by virtue of the provisions of RCW 35.45.010 et seq., Section 35.45.070 of which reads as follows:

“Neither the holder nor the owner of any bond or warrant issued under the provisions of this act shall have any claim therefor against the city or town by which the same is issued, except for payment from the special assessments made for the improvement for which said bond or warrant was issued, and except as against the local improvement guaranty fund of such city or town, and the city or town shall not be liable to any holder or owner of such bond or warrant for any loss to the guaranty fund occurring in the lawful operation thereof by the city or town. The remedy of the holder or owner of a bond or warrant in case of nonpayment, shall be confined to the enforcement of the assessment and to the guaranty fund.”

The City of Sumner, a municipal corporation of the State of Washington, hereby promises to pay to _________ or bearer ($______) Dollars, in lawful money of the United States, with interest thereon at the rate of ___ percent per annum, payable annually out of the fund established by Ordinance No. __ of said City and known as “Local Improvement Fund, District No. __” and not otherwise except from the guaranty fund, as herein provided. Both principal of and interest on this bond are payable at the office of the City Treasurer of said City.

A coupon is hereto attached for each installment of interest to accrue hereon and said interest shall be paid only on presentation and surrender of such coupon to the City Treasurer.

This bond is payable on or before the ____ day of ______, 19__, and is subject to call by the City Treasurer of said City whenever there shall be sufficient money in said Local Improvement Fund to pay the same and all unpaid bonds of the series of which this bond is one, which are prior to this bond in numerical order, over and above sufficient for the payment of interest on all unpaid bonds of said series. The call for payment of this bond, or of any bond of the series of which this is one, shall be made by the City Treasurer by publishing the same once in the official newspaper of said City, and when such call is made for the payment of this bond it will be paid on the day the next interest coupon thereon shall become due after said call and upon said day interest upon this bond shall cease and any remaining coupons shall be void.

The City Council of said City as the agent of said Local Improvement District No. ____, established by Ordinance No. ____, has caused this bond to be issued in the name of the said City as the bond of said Local Improvement District, the bond or the proceeds thereof to be applied in part payment of so much of the cost and expense of the improvement of _____, under said Ordinance No. ___ as is levied and assessed against the property included in said Local Improvement District No. _____ and benefitted by said improvement, and the said Local Improvement Fund has been established by ordinance for said purpose; and the holder or holders of this bond shall look only to said fund and to the Local Improvement Guaranty Fund of the City of Sumner for the payment of either the principal of or interest on this bond.

This Bond is one of a series of ____ bonds aggregating in all the principal sum of _____ ($______) Dollars, all of which bonds are subject to the same terms and conditions as herein expressed.

IN WITNESS WHEREOF, the City of Sumner has caused these presents to be signed by its Mayor and attested by its City Clerk and sealed with its corporate seal this _____ day of ____, 19___.

CITY OF SUMNER,

WASHINGTON

By __________

Mayor

Attest:

___________________

City Clerk

There shall be attached to each bond such a number of coupons as shall be required to represent the interest thereon payable either annually or semiannually, as the case may be, for the term of said bonds, which coupons shall be substantially in the following form:

On the _____ day of ____, 19___, the CITY OF SUMNER, STATE OF WASHINGTON, promises to pay to the bearer at the office of the City Treasurer, _____ ($_____) Dollars, being (six) (twelve) months’ interest due that day on Bond No. ___ of the bonds of Local Improvement District No. ____, and not otherwise; provided that this coupon is subject to all the terms and conditions contained in the bond to which it is annexed, and if said bond shall be

called for payment before maturity hereof, then this coupon shall be void.

CITY OF SUMNER,

WASHINGTON

By __________

Mayor

Attest:

___________________

City Clerk

B. The city treasurer shall keep in his/her office a register of all such bonds in which he/she shall enter the local improvement district for which the same are issued and the date, amount and number of each bond and the terms of payment. (Ord. 1718 § 6, 1995; Ord. 563 § 12, 1953. Prior code § 8.02.120)

3.40.150 Applicability of state law.

The laws of the state of Washington and the provisions of this chapter shall be applicable to all local improvements and proceedings therein initiated by petition or resolution subsequent to the passage and legal publication of the ordinance codified in this chapter, and all proceedings and the manner of the collection and enforcement of all assessments in such proceedings shall be in compliance therewith. (Ord. 563 § 20, 1953. Prior code § 8.02.130)

Chapter 3.44
FUNDS

Sections:

3.44.010 Accident fund.

3.44.020 Cemetery funds – Apportionment of revenues.

3.44.030 Cemetery building and development fund.

3.44.035 Cemetery endowment fund.

3.44.040 Check-handling fee.

3.44.050 Repealed.

3.44.060 Repealed.

3.44.070 Section 125 plan trust fund – Established.

3.44.080 Repealed.

3.44.090 Cumulative reserve fund – Established.

3.44.100 Cumulative reserve fund – Designation.

3.44.110 Cumulative reserve fund – Accumulation.

3.44.120 Cumulative reserve fund – Expenditure.

3.44.130 Cumulative reserve fund – Statutory authority.

3.44.140 Equipment rental fund.

3.44.150 Federal shared revenue fund.

3.44.160 Local improvement guaranty fund – Established.

3.44.170 Local improvement guaranty fund – Levy.

3.44.180 Local improvement guaranty fund – Payments from.

3.44.190 Local improvement guaranty fund – Warrants.

3.44.200 Local improvement guaranty fund – Interest.

3.44.210 Local improvement guaranty fund – City liability.

3.44.213 LID development fund – Established.

3.44.216 LID development fund – Purpose.

3.44.220 Multi-service center fund.

3.44.230 Petty cash account.

3.44.240 Repealed.

3.44.250 Water pipe replacement fund.

3.44.260 Parks and recreation fund.

3.44.270 Repealed.

3.44.280 Utility’s bond reserve fund.

3.44.290 Repealed.

3.44.300 General government reserve funds.

3.44.310 Miscellaneous grant fund.

3.44.010 Accident fund.

There is created and established in the treasury of the city a special fund to be called the “accident fund,” which fund, pursuant to RCW 35.31.050, shall be used for issuance of warrants necessary for payment of judgments against the city on account of personal injuries suffered by any person. (Ord. 558 § 1, 1953. Prior code § 1.22.010)

3.44.020 Cemetery funds – Apportionment of revenues.

All moneys derived from the sale of lots, crypts and niches in the city cemetery shall be distributed as follows:

A. Cemetery operating fund, 70 percent;

B. Cemetery endowment care fund, 10 percent;

C. Cemetery building and development fund, 20 percent. (Ord. 1818 § 1, 1997: Ord. 1169 § 1, 1981: Ord. 837 § 2, 1967)

3.44.030 Cemetery building and development fund.

There is created and established a new fund in the accounting system of the city, to be known as the “cemetery building and development fund,” to provide funding for the reasonable and responsible growth in the future enhancement and capital development of the cemetery facilities and property. (Ord. 1818 § 2, 1997: Ord. 837 § 1, 1967. Prior code § 1.22.200)

3.44.035 Cemetery endowment fund.

There is hereby created and established in the accounting system of the city of Sumner a new fund to be known as the cemetery endowment fund. (Ord. 1818 § 5, 1997)

3.44.040 Check-handling fee.

Whenever a check or draft presented to the city is dishonored by nonacceptance or nonpayment by the drawing bank or institution, the maker may be charged a $40.00 check-handling fee. Any license or application paid for with such check or draft is invalid, any obligation paid with such check or draft is still outstanding, and any penalties, interest or fees specified in the Sumner Municipal Code, ordinances or resolutions will continue to accrue, until the city receives funds for the amount of the check or draft plus the check-handling fee.

The city administrator of the city of Sumner, or his/her designee, is hereby authorized to assess said check-handling charge, at his/her discretion, in addition to, and as a part of, the payment or obligation due or made to the city of Sumner for which the dishonored check or draft was issued. (Ord. 2203 § 1, 2007)

3.44.050 Cemetery improvement fund – Established.

Repealed by Ord. 1818. (Ord. 518, 1950: Ord. 354 § 1, 1927. Prior code § 1.22.030)

3.44.060 Cemetery improvement fund – Investment.

Repealed by Ord. 1818. (Ord. 354 § 2, 1927. Prior code § 1.22.040)

3.44.070 Section 125 plan trust fund – Established.

There is hereby created and established in the accounting system of the city of Sumner an expendable trust fund to be known as Fund No. 615, the Section 125 plan trust fund, to be used for the financial transactions related to the city’s flexible spending plan. (Ord. 2078 (part), 2004)

3.44.080 Cemetery improvement fund – Investment income.

Repealed by Ord. 1818. (Ord. 354 § 4, 1927. Prior code § 1.22.060)

3.44.090 Cumulative reserve fund – Established.

There is established a cumulative reserve fund for the purpose of future purchase of materials or equipment necessary for the various departments of the city. (Ord. 628 § 1, 1957. Prior code § 1.22.070)

3.44.100 Cumulative reserve fund – Designation.

The fund established in SMC 3.44.090 shall be designated as city of Sumner cumulative reserve fund for materials or equipment. (Ord. 628 § 2, 1957. Prior Code § 1.22.080)

3.44.110 Cumulative reserve fund – Accumulation.

The cumulative reserve fund shall be accumulated, and there shall be paid into the fund such amounts as determined by the city’s annual budget. Any moneys in the fund at the end of the fiscal year shall not lapse nor shall the same be a surplus available or which may be used for any other purpose or purposes than those specified; that is, materials or equipment. (Ord. 628 § 3, 1957. Prior code § 1.22.090)

3.44.120 Cumulative reserve fund – Expenditure.

The money in the cumulative reserve fund shall be allowed to accumulate from year to year until the city council determines in the annual budget to expend the money. (Ord. 1172 § 1, 1981: Ord. 628 § 4, 1957. Prior code § 1.22.100)

3.44.130 Cumulative reserve fund – Statutory authority.

SMC 3.44.090 to 3.44.110, inclusive, are passed under the provisions of RCW 35.21.070 and RCW 35.21.080. (Ord. 628 § 5, 1957. Prior Code § 1.22.110)

3.44.140 Equipment rental fund.

There is created and established a new fund in the accounting system of the city, to be known as the “equipment rental fund.” (Ord. 840 § 1, 1967. Prior code § 1.22.210)

3.44.150 Federal shared revenue fund.

There is created and established a new fund in the treasury of the city to be known as the “federal shared revenue fund.” (Ord. 951 § 1, 1972. Prior code § 1.22.240)

3.44.160 Local improvement guaranty fund – Established.

In accordance with Chapter 141, Laws of 1923, and acts amendatory thereof (being chapter 35.54 RCW), the city establishes and creates a fund for the purpose of guaranteeing, to the extent of such fund, the payment of its bonds and warrants issued to pay for the local improvement ordered in Local Improvement District No. 40, heretofore created, and in any local improvement districts in the city of Sumner created subsequent to the effective date of the ordinance codified in SMC 3.44.160 through 3.44.210. This fund shall be known and designated as “local improvement guaranty fund.” (Ord. 819 § 1, 1967. Prior Code § 1.22.140)

3.44.170 Local improvement guaranty fund – Levy.

After February 6, 1967, 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 SMC 3.44.160; and whenever the city has paid out of the guaranty fund any sum on account of principal and 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, interest coupon, or warrant so paid and the proceeds thereof, or of the underlying assessments, shall become a part of the fund. (Ord. 819 § 2, 1967. Prior Code § 1.22.150)

3.44.180 Local improvement guaranty fund – Payments from.

Whenever any interest coupon, bond or warrant guaranteed under the provisions of the laws of the state of Washington in pursuance of which the ordinance codified in SMC 3.44.160 through 3.44.210 is passed shall be in default, the clerk-treasurer is authorized and directed, upon the presentation and delivery of such defaulted bond, coupon or warrant, to execute, sign and deliver to the person or persons presenting the same, in the order of their presentation, and the clerk-treasurer 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 clerk-treasurer under the provisions of the section shall be held for the benefit of the local improvement guaranty fund. (Ord. 819 § 3, 1967. Prior Code § 1.22.160)

3.44.190 Local improvement guaranty fund – Warrants.

Warrants drawing interest at a rate not to exceed six percent shall be issued, as other warrants are issued by the city, against the local improvement guaranty fund to meet any liability accruing against it; and at the time of making its annual budget and tax levy, the city shall provide for the levying of a sum sufficient, with the other resources of the fund, to pay warrants so issued during the preceding fiscal year. Such warrants shall at no time exceed five percent of the outstanding bond obligations guaranteed by the fund. (Ord. 819 § 4, 1967. Prior code § 1.22.170)

3.44.200 Local improvement guaranty fund – Interest.

The clerk-treasurer is authorized and directed to pay into such local improvement guaranty fund all interest received from bank deposits of the fund, as well as any surplus remaining in any local improvement district fund guaranteed under state law after the payment of all outstanding bonds or warrants payable primarily out of such local improvement district fund. (Ord. 819 § 5, 1967. Prior code § 1.22.180)

3.44.210 Local improvement guaranty fund – City liability.

Neither the owner nor the holder of any bond, interest coupon or warrant issued against a local improvement fund after the passage of the ordinance codified in SMC 3.44.160 through 3.44.210 shall have any claim therefor against the city, except for payment from the special assessments made for the improvement for which the bond or warrant was issued, and except as against the local improvement guaranty fund created in SMC 3.44.160, and the city shall not be liable to any holder or owner of the bond, interest coupon or warrant for any loss to the guaranty fund occurring in the lawful operation thereof by the city. The remedy of the holder or owner of a bond or warrant in case of nonpayment shall be confined to the enforcement of the assessment and to the guaranty fund. A copy of RCW 35.45.070, the provisions of which are included in this section, shall be plainly written, printed or engraved on each bond issued and guaranteed hereunder. (Ord. 819 § 36, 1967. Prior Code § 1.22.190)

3.44.213 LID development fund – Established.

There is created and established a new fund in the accounting system of the city to be known as the LID development fund. (Ord. 1443 § 1, 1989)

3.44.216 LID development fund – Purpose.

The purpose of this fund, when it has been determined that the creation of an LID would be of benefit to the city, is to facilitate the creation of local improvement districts by the payment of the costs of the preliminary engineering and the preparation of the preliminary assessment roll. (Ord. 1443 § 2, 1989)

3.44.220 Multi-service center fund.

There is created a new fund in the city accounting system to be known as the multi-service center fund. (Ord. 1053 § 1, 1978. Prior code § 1.22.250)

3.44.230 Petty cash account.

There is hereby created and established a petty cash account in the amount of $2,000 in the accounting system of the city of Sumner. The purpose of this petty cash account is to meet the needs of departments that need petty cash to maintain their daily operations, to make minor authorized disbursements, and to make change at locations throughout the city in accordance with the rules and regulations established. (Ord. 2216 § 1, 2007: Ord. 2177 § 2, 2006)

3.44.240 Utility change fund.

Repealed by Ord. 2177. (Ord. 946 § 1, 1972. Prior code § 1.22.230)

3.44.250 Water pipe replacement fund.

There is created and established in the treasury of the city a special fund to be called the water pipe replacement fund, which fund is to be drawn upon for the sole purpose of replacement of 14-inch pipe, together with the necessary fittings, of the pipe line extending from the headworks of the city water system to the corner of Elm Street and Wright Avenue within the city limits, or a distance and total of 3,800 feet. (Ord. 457 § 1, 1940. Prior code § 1.22.130)

3.44.260 Parks and recreation fund.

A. There is created and established a new fund in the accounting system of the city to be known as the parks and recreation fund.

B. The purpose of this fund is to receive revenues and provide for expenditures for parks and recreation. (Ord. 1576 §§ 1, 2, 1992)

3.44.270 Municipal court change fund.

Repealed by Ord. 2177. (Ord. 2057 §§ 1, 2, 2003: Ord. 1811 §§ 1, 2, 1997)

3.44.280 Utility’s bond reserve fund.

There is hereby created and established a new fund in the accounting system of the city of Sumner to be known as the “utility’s bond reserve fund” for the purpose of depositing and securing the payment of the principal and interest on all outstanding city issued parity bonds in amounts to meet such bond reserve requirements. (Ord. 1850 § 1, 1998)

3.44.290 Animal control change fund.

Repealed by Ord. 2177. (Ord. 1869 §§ 1, 2, 1999)

3.44.300 General government reserve funds.

A. Created within the city’s accounting structure is fund No. 002 general government reserve. The purpose of the reserve fund will be to support general fund expenditures in future years, including but not limited to the hiring of three additional firefighters/paramedics in 2006.

The resources of the fund will be utilized as stipulated above unless otherwise authorized by a two-thirds majority vote of the members of the city council of the city of Sumner.

B. Created within the city’s accounting structure is fund No. 003 general government facilities reserve. The purpose of the reserve fund will be to provide the resources needed for major capital repairs (project expenditures totaling no less than $20,000) to general government facilities, including parks.

The resources of the fund will be utilized as stipulated above unless otherwise authorized by a two-thirds majority vote of the members of the city council of the city of Sumner. (Ord. 2152 §§ 1, 2, 2005; Ord. 2151 §§ 1, 2, 2005)

3.44.310 Miscellaneous grant fund.

Created within the city’s accounting structure is a new fund entitled “miscellaneous grant fund.” The purpose of the fund will be to account for unique or one-time grants. (Ord. 2232 § 1, 2007)

Chapter 3.48
BOND AND OBLIGATION REGISTRATION⁶

Sections:

3.48.010 Findings.

3.48.020 Definitions.

3.48.030 Registration system adopted.

3.48.040 Registration requirement.

3.48.050 Method of registration.

3.48.060 Denominations.

3.48.070 Appointment of registrar.

3.48.080 Duties of registrar.

3.48.090 Contents of issuing ordinance when registrar not fiscal agency.

3.48.100 Statement of transfer restrictions.

3.48.010 Findings.

The city council of the city finds that it is in the city’s best interest to establish a system of registering the ownership of the city’s bonds and obligations in the manner permitted by law. (Ord. 1450 § 2, 1989)

3.48.020 Definitions.

The following words shall have the following meanings when used in this chapter:

A. “Bond” or “bonds” shall have the meaning defined in RCW 39.46.020(1), as the same may be from time to time amended.

B. “City” means the city of Sumner, Washington.

C. “Fiscal agencies” means the duly appointed fiscal agencies of the state of Washington serving as such at any given time.

D. “Obligation” or “obligations” shall have the meaning defined in RCW 39.46.020(3), as the same may be from time to time amended.

E. “Registrar” means the person or persons designated by the city to register ownership of bonds or obligations under this chapter or under an ordinance of the city authorizing the issuance of such bonds or obligations. (Ord. 1450 § 1, 1989)

3.48.030 Registration system adopted.

The city adopts the system of registering the ownership of its bonds and obligations described in SMC 3.48.040 through 3.48.090 of this chapter. (Ord. 1450 § 3 (part), 1989)

3.48.040 Registration requirement.

All bonds and obligations offered to the public, having a maturity of more than one year, on which the interest is intended to be exempt from gross income for federal income tax purposes, shall be registered as to both principal and interest as provided in this chapter. (Ord. 1450 § 3(a), 1989)

3.48.050 Method of registration.

A. The registration of all city bonds and obligations required to be registered shall be carried out either by:

1. A book entry system of recording the ownership of the bond or obligation on the books of the registrar, whether or not a physical instrument is issued; or

2. Recording the ownership of the bond or obligation and requiring as a condition of the transfer of ownership of any bond or obligation the surrender of the old bond or obligation and either the reissuance of the old bond or obligation or the issuance of a new bond or obligation to the new owner.

B. No transfer of any bond or obligation subject to registration requirements shall be effective until the name of the new owner and the new owner’s mailing address, together with such other information deemed appropriate by the registrar, shall be recorded on the books of the registrar. (Ord. 1450 § 3(b), 1989)

3.48.060 Denominations.

Except as may be provided otherwise by the ordinance authorizing their issuance, registered bonds or obligations may be issued and reissued in any denomination up to the outstanding principal amount of the bonds or obligations of which they are a part. Such denominations may represent all or a part of a maturity or several maturities and on reissu-

ance may be in smaller amounts than the individual denominations for which they are reissued. (Ord. 1450 § 3(c), 1989)

3.48.070 Appointment of registrar.

Unless otherwise provided in the ordinance authorizing the issuance of registered bonds or obligations, the city treasurer shall be the registrar for all registered interest-bearing warrants, installment contracts, interest-bearing leases and other registered bonds or obligations not usually subject to trading and without a fixed maturity date or maturing one year or less after issuance, and the fiscal agencies shall be the registrar for all other city bonds and obligations without a fixed maturity date or maturing more than one year after issuance. (Ord. 1450 § 3(d), 1989)

3.48.080 Duties of registrar.

A. The registrar shall serve as the city’s authenticating trustee, transfer agent, registrar and paying agent for registered bonds and obligations for which he, she or it serves as registrar, and shall comply fully with all applicable federal and state laws and regulations respecting the carrying out of those duties.

B. The rights, duties, responsibilities and compensation of the registrar shall be prescribed in each ordinance authorizing the issuance of the bonds or obligations, which rights, duties, responsibilities and compensation shall be embodied in a contract executed by the city treasurer and the registrar, except that (1) when the fiscal agencies serve as registrar, the city adopts by reference the contract between the state finance committee of the state of Washington and the fiscal agencies in lieu of executing a separate contract and prescribing by ordinance the rights, duties, obligations and compensation of the registrar, and (2) when the city treasurer serves as registrar, a separate contract shall not be required. (Ord. 1450 § 3(e) (part), 1989)

3.48.090 Contents of issuing ordinance when registrar not fiscal agency.

In all cases when the registrar is not the fiscal agencies and the bonds or obligations are assignable, the ordinance authorizing the issuance of the registered bonds or obligations shall specify the terms and conditions of:

A. Making payments of principal and interest;

B. Printing any physical instruments, including the use of identifying numbers or other designation;

C. Specifying record and payment dates;

D. Determining denominations;

E. Establishing the manner of communicating with the owners of the bonds or obligations;

F. Establishing the methods of receipting for the physical instruments for payment of principal, the destruction of such instruments and the certification of such destruction;

G. Registering or releasing security interests, if any; and

H. Such other matters pertaining to the registration of the bonds or obligations authorized by such ordinance as the city may deem to be necessary or appropriate. (Ord. 1450 § 3(e) (part), 1989)

3.48.100 Statement of transfer restrictions.

Any physical instrument issued or executed by the city subject to registration under this chapter shall state on its face that the principal of and interest on the bonds or obligations shall be paid only to the owner thereof registered as such on the books of the registrar as of the record date defined in the instrument and to no other person, and that such instrument, either principal or interest, may not be assigned except on the books of the registrar. (Ord. 1450 § 4, 1989)

---

Footnotes

¹For provisions of state law on excise taxes generally, see chapters 35A.82 and 67.40 RCW, and Title 82 RCW; for provisions on special purpose funds, see chapter 35A.37 RCW; for provisions on budgets, see chapter 35A.33 RCW.

²For provisions of state law on leasehold excise taxes, see chapter 82.29A RCW.

³For statutory provisions on real estate excise taxes, see chapter 82.45 RCW.

⁴For provisions of state law on sales or use taxes, see chapter 82.14 RCW. Prior legislation: Ord. 269, repealed by Ord. 943; and 586, repealed by 651.

⁵For statutory provisions on local improvement guaranty funds, see chapter 35.54 RCW.

⁶Prior legislation: Ord. 1386.