Chapter 5.32
CLAIMS FUND

Sections:

5.32.010    Established.

5.32.020    Transfers from insolvent fund.

5.32.030    Procedure for audit of accounts payable and issuance of checks in payment.

5.32.031    Issuance of checks before approval by city council.

5.32.032    Use of checks when the claims fund is solvent.

5.32.010 Established.

In accordance with RCW 35.21.085 and 35.21.086, which provides for the creation of certain special funds by the legislative authority of any city or town, a fund to be known as the claims fund is hereby established into which may be paid moneys from time to time from any funds which are available, and upon which warrants may be issued and paid in payment of claims against the city. The accounts of the city shall be kept so that they shall show the department or departments and the respective amounts for which the warrant is issued and paid. (Ord. 1021 § 1, 1966)

5.32.020 Transfers from insolvent fund.

Whenever a transfer is required to be made to the claims fund from an insolvent fund, such transfer shall be by warrant or warrants. Such warrants shall issue to such fund or funds as have advanced to the claims fund the moneys required to pay the claims chargeable against the insolvent fund. Such warrants shall be redeemable upon such terms including a reasonable interest rate as the investment committee created by Section 5.24.010 shall determine; provided, however, that in lieu of the actual issuance of such warrants, the substance of the transfer and the interfund loan, hereinafter referred to as transaction, including all terms of payment may be entered into the accounts of the city in any manner which shall clearly indicate and record the entire transaction. (Ord. 2253 § 1, 1974: Ord. 1021 § 2, 1966)

5.32.030 Procedure for audit of accounts payable and issuance of checks in payment.

Before any city check may be drawn and issued for payment of claims, bills, invoices and other demands or obligations payable from the claims fund, or any other city fund, the claims or other requests for payment shall be audited by the department of finance and administration and a detailed summary thereof submitted to the city council for its approval at the next regular council meeting; provided, that such checks may be issued after audit and approval by the director of finance and administration and countersigned by the city manager but prior to approval by the city council, subject to the conditions set forth in Section 5.32.031. (Ord. 4416 § 30, 2013: Ord. 3573 § 43, 1997: Ord. 3533 § 1, 1996: Ord. 3245 § 1, 1991)

5.32.031 Issuance of checks before approval by city council.

As authorized by RCW 42.24.180, city checks may be drawn and issued for payment of claims, bills, invoices and other demands or obligations after audit and approval by the director of finance and administration and countersigned by the city manager but prior to approval by the city council under the following conditions:

(1)    The director of finance and administration and the city manager have each furnished to the city an official bond for the faithful discharge of their respective duties in an amount and in accordance with the provisions of Section 3.72.010;

(2)    Contracting, hiring, purchasing and disbursing policies that implement effective internal control as adopted by the city council are and remain in effect;

(3)    Documentation supporting each claim for which such checks are issued is submitted to the city council for its approval at the council’s next regularly scheduled public meeting; and

(4)    If upon council review the council disapproves some claims for which such checks have been issued, the director of finance and administration and the city manager shall jointly cause the disapproved claims to be recognized as receivables of the city of Kirkland and to pursue collection diligently until the amounts disapproved are either collected or until the legislative body is satisfied and approves the claims. (Ord. 4416 § 31, 2013: Ord. 3573 § 44, 1997: Ord. 3533 § 2, 1996)

5.32.032 Use of checks when the claims fund is solvent.

As authorized by RCW 35A.40.020, payment of claims and other obligations of the city, which are payable out of the claims fund, may be made by check; provided, that in the event the claims fund is not solvent, then a warrant shall be issued in lieu of a check. Checks shall be drawn on a checking account with the bank designated by the city as its bank for general banking purposes as of the date of check issuance. Checks shall be signed by the persons authorized to sign warrants. Wherever in this code reference is made to warrants, the term shall include checks where authorized by this section. (Ord. 3602 § 1, 1997)