Ord 91-121
ORDINANCE NO.
91-121
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF
FEDERAL WAY, WASHINGTON, ESTABLISHING SPECIFIC CITY
FUNDS; DEFINING THEIR PURPOSE AND REVENUE
SOURCE(S); SPECIFYING THE FUND ADMINISTRATOR TO BE
THE CITY MANAGER OR HIS OR HER DESIGNEE; PROVIDING
OTHER PERTINENT GENERAL AND FINANCIAL INFORMATION
RELATED TO EACH FUND; AUTHORIZING THE MAKING OF
INTERFUND LOANS OF MUNICIPAL MONIES TO COMPLY WITH
THE PROVISIONS OF RCW 43.09.210, PROVIDING FOR THE
ACCOUNTING PROCEDURES WHEN SUCH INTERFUND LOANS ARE
MADE, AND AUTHORIZING INTERIM, TEMPORARY LOANS
BETWEEN FUNDS WITHIN A FISCAL YEAR.
WHEREAS,
The establishment of separate accounts for every
appropriation
or
fund
of
a
municipality
is
required
by
the
provisions of
RCW 43.09.210;
WHEREAS, RCW 43.09.210 also states in pertinent part that "all
services rendered by .
one department, public improvement,
undertaking, institution, or public service industry to another,
shall be paid for at its true and full value. . . or no department
shall benefit
in any financial manner whatever
by
an
appropriation or fund made for the support of another"; and
WHEREAS, the city seeks compliance with the provision of RCW
43.09.210; and
WHEREAS, the City of Federal Way Finance Department requires
City Council authorization for the Finance Department's ability to
make interfund loans in order to maintain positive cash balances in
all
funds
pursuant
to
the
provision
of
RCW
43.09.210;
NOW,
THEREFORE,
~
O~AL
~
THE CITY COUNCIL OF THE CITY OF FEDERAL WAY, WASHINGTON
DO ORDAIN AS FOLLOWS:
section 1.
Establishment of Accounts.
The Council
hereby establishes the following Funds for the city of Federal Way:
1.
GENERAL FUND CRCW 35A.37.010. AND 35.37.010).
PURPOSE(S) :
To account for all receipt and disbursement
transactions associated with ordinary City operations
that are not required to be accounted for in another
Fund.
REVENUE SOURCES:
Tax and general revenue supported.
Examples
include
property taxes,
local
sales
taxes,
franchise fees, gambling taxes, liquor taxes, business
taxes,
fines and forfeitures,
license fees,
permits,
recreation fees, and miscellaneous other revenues that
support general government operations.
FUND
ADMINISTRATION:
city
Manager
or
his
or
her
designee.
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2.
STREET FUND.
PURPOSE(S) :
Accounts for the receipt and disbursement of
state-levied unrestricted motor vehicle fuel taxes which
must be accounted for in a separate fund and expended for
planning,
engineering,
construction
and
maintenance
related to City streets,
sidewalks and appurtenances,
including pedestrian and bicycle paths, lanes and routes.
REVENUE SOURCES:
Specific revenue sources shall include,
but not be limited to, unrestricted motor vehicle fuel
taxes, transportation related fees and permits, interest
earnings, and such other sources as may be authorized by
the City Council.
FUND ADMINISTRATION:
The city Manager or his or her
designee.
3.
ARTERIAL STREET FUND.
PURPOSE(S) :
This Fund is established to receive and
disburse
all
monies
received
by
the
City
as
distributions, pursuant to RCW 46.68.100(2), of the motor
vehicle fuel taxes imposed by the State.
These revenues
are
to
be
used
exclusively
for
the
construction,
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improvement, chip sealing, seal-coating, and repair of
arterial highways and city streets as those terms are
defined
in RCW 46.04.030
and
46.04.120;
or
for the
payment
of
any municipal
indebtedness
which
may
be
incurred for the above noted expenditures related to
arterial highways and city streets.
REVENUE SOURCES:
Motor vehicle fuel tax distributions
pursuant to RCW 46.68.100 (2),
interest earnings, and
other revenue sources as may be authorized by the city
council.
FUND ADMINISTRATION:
The City Manager or his or her
designee.
4.
FIRST .25% REAL ESTATE EXCISE TAX FUND.
PURPOSE(S) :
Established to account for the receipt and
disbursement
of
the
.25%
real
estate
excise
tax
authorized by RCW 82.46.010, and dedicated for capital
purposes defined in RCW 35.43.040.
Such expenditures
include public buildings and facilities, parks, and debt
service associated with such capital oriented projects.
-4-
REVENUE SOURCES:
.25% real estate excise tax authorized
by
RCW
82.46.010,
and
other
revenues
that
may
be
authorized by the city Council.
FUND ADMINISTRATION:
The City Manager or his or her
designee.
5. SECOND .25% REAL ESTATE EXCISE TAX FUND.
PURPOSE(S):
Established to account for the receipt and
expenditure of the additional .25% real estate excise tax
authorized by the Growth Management Act (RCW 82.46.035).
These
revenues
are
restricted
to
financing
capital
projects specified in a capital facilities plan.
REVENUE SOURCES:
Second .25% real estate excises tax
authorized by RCW 82.46.035 and other revenue sources as
may be authorized by the city Council.
FUND ADMINISTRATION:
The City Manager or his or her
designee.
-5-
6. GRANTS - MISCELLANEOUS GOVERNMENT.
PURPOSE(S) :
A project Fund established in which to place
monies from designated federal, state or county grants,
or grants from other sources,
approved,
accepted and
assigned to this Fund by the city Council.
Any city
monies required for any such grant shall also be placed
in
this
Fund.
Such monies
shall
be
used
for
the
purpose (s) specif ied by the terms of each such individual
grant.
REVENUE SOURCES:
Grants from various government and non-
government agencies, city contributions, or other revenue
sources as may be authorized by the City Council.
FUND ADMINISTRATION:
The city Manager or his or her
designee shall maintain a separate record of accounts
showing the receipts and disbursements of each and every
grant assigned to this fund.
The Department assigned, by
the terms of the city's acceptance of said grant, to
administer any program or activity financed wholly or in
part by the grant financially controlled by this fund,
shall
approve
all
expenditures
therefrom
and
shall
maintain such records and documents, and prepare such
reports as may be required by the grantor agency or the
city Council.
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OTHER GENERAL / FINANCIAL INFORMATION:
0
PROJECTS ESTABLISHED:
Individual grant projects
shall
be
established
in the
Fund,
based on
Council
authorization
and/or
acceptance.
Fund
appropriations
shall not lapse at the end of any calendar year but shall
remain in effect until the grant project is completed.
Administrative housekeeping projects may be established
by the Finance Director.
0
FINANCING: The grant fund is hereby authorized to
borrow monies from time to time from other City funds in
amounts necessary to effectuate the purposes of said
Fund.
Authorization for each such loan shall be made by
the
city
Manager
or
his
or
her
designee.
Such
authorization shall be given only when the lending fund
has sufficient resources to make the loan, which shall be
determined by the Finance Director. Such loans shall be
without interest unless interest is required by law, and
shall be repaid when there no longer exists a financing
need within said Fund.
Where interest is required by
law, the Finance Director shall designate the appropriate
rate.
7.
COMMUNITY DEVELOPMENT BLOCK GRANT FUND.
PURPOSE(S):
A project Fund established in which to place
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monies from designated federal grants received through
the
Department
of
Housing
and
Urban
Development's
Community Development Block Grant Program,
approved,
accepted and assigned to this Fund by the City Council.
Any city monies required for any such grant shall also be
placed in this Fund.
Such monies shall be used for the
purposes specified by the terms of each grant agreement.
REVENUE SOURCES:
Grant revenues received through CDBG
Program, city contributions, or other revenue sources as
may be authorized by the city Council.
FUND ADMINISTRATION:
The City Manager or his or her
designee shall maintain a separate record of accounts
showing the receipts and disbursements of each and every
grant assigned to this fund.
The Department assigned, by
the terms of the city's acceptance of said grant,
to
administer any program or activity financed wholly or in
part by the grant financially controlled by this fund,
shall
approve
all
expenditures
therefrom
and
shall
maintain such records and documents, and prepare such
reports as may be required by the grantor agency or the
City Council.
OTHER GENERAL / FINANCIAL INFORMATION:
0
PROJECTS ESTABLISHED:
Individual grant projects
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shall be established in this Fund,
based on Council
authorization and/or acceptance.
Fund appropriations
shall not lapse at the end of any calendar year but shall
remain in effect until the grant project is completed.
Administrative housekeeping oriented projects may be
established by the Finance Director.
0
FINANCING:
The Grant Fund is hereby authorized to
borrow monies from time to time from other city funds in
amounts necessary to effectuate the purposes of said
Fund.
Authorization for each such loan shall be made by
the City Manager or his designee.
Such authorization
shall be given only when the lending fund has sufficient
resources to make the loan, which shall be determined by
the
Finance Director.
Such
loans
shall
be without
interest unless interest is required by law, and shall be
repaid when there no longer exists a financing need
within said Fund.
Where interest is required by law, the
Finance Director shall designate the appropriate rate.
8. PATH AND TRAILS RESERVE FUND.
PURPOSE(S) :
This Fund is established to accumulate the
annually unexpended portion of the motor vehicle fuel tax
designated to establish and maintain paths and trails
within the right-of-way of county roads and city streets
-9-
for pedestrians, equestrians, or bicyclists.
state RCW
47.30.050 requires at least one half of one percent of
the total amount of funds annually received from the
motor vehicle fund to be expended for paths and trails
purposes.
Moneys set aside in this Reserve fund must be
expended within ten years.
This Fund shall reserve these
revenues until the city council determines to expend all
or any portion,
at which time such monies
shall be
transferred back to the City street or Arterial street
Fund by authority of a City ordinance.
REVENUE SOURCES:
Motor vehicle fuel taxes received from
the motor vehicle fund according to the provisions of RCW
46.68.100.
FUND ADMINISTRATION:
The City Manager or his or her
designee shall have responsibility for the financial
administration of this Reserve Fund.
9. SURFACE WATER MANAGEMENT (CROSS REFERENCE ORDINANCE
#90-32. AS AMENDED).
PURPOSE(S):
Established to administer and account for
all receipts and disbursements related to the city 's
surface and storm water management system.
All service
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charges shall be deposited in this Fund for the purpose
of paying all or any part of the cost and expense of
maintaining
and
operating
surface
and
storm
water
management facilities, all or any part of the cost and
expense of planning, designing, establishing, acquiring,
developing,
construction
and
improving
any
such
facilities, or to payor secure the payment of all or any
portion of any issue of general obligation or revenue
bond issued for such purpose.
REVENUE
SOURCES:
Revenues
supporting
this
Fund's
activities
include
various
storm
and
surface
water
charges,
interest earnings,
interfund transfers,
and
other revenue sources as may be authorized by the city
Council.
FUND ADMINISTRATION:
The city Manager or his or her
designee.
OTHER GENERAL / FINANCIAL INFORMATION:
0
FINANCING:
The City Manager or his or her
designee
is authorized from time to time to arrange for
any needed interim financing at the prevailing market
interest rate.
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10. COUNCILMANIC DEBT SERVICE FUND.
PURPOSE(S) :
This fund is established to account for the
debt service, and debt service related costs, on all city
council
approved
general
obligation
bonds
or
other
general obligation debt.
REVENUE SOURCES:
Allocations of the City's regular levy
property taxes, operation transfers from the .25% Real
Estate Excise Tax Funds or other Funds benefitting from
the bond proceeds, or other revenue sources as may be
designated by the city Council.
FUND ADMINISTRATION:
The city Manager or his or her
designee.
OTHER GENERAL INFORMATION:
The authorizing ordinance for
the bond sale and the related bond debt service schedule
provide budget authority for this city Fund. Such budget
authority shall not lapse at calendar year end.
11.
RISK MANAGEMENT FUND.
PURPOSE(S) :
This Fund is to provide the vehicle for
financial administration of the City's comprehensive risk
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management/self-insurance program.
This Fund shall be
used to provide self-insurance or to purchase additional
insurance coverage against risks covered by the City's
insurance policies, and to provide self-insurance against
such other risks as the City Council may from time to
time designate by Council resolution.
The risks covered
by
the
self-insurance
program
shall
be
those
risks
covered
by
the
city's
purchased
insurance
policies
together with such other risks as may be designated by
council resolution.
This Fund shall be used to pay all
other insurance/risk management oriented expenditures,
including costs and expenses of defending the city, its
officials and its employees against claims covered by the
program.
The persons and entities covered under the
self-insurance
program
shall
be
those
persons
and
enti ties covered under the city's purchased insurance
policies.
This Fund shall be used to pay claims the
amounts of which are lower than the dollar level at which
the city I s purchased insurance policies provide coverage.
It shall also be used to accumulate reserves for the
payment of future claims.
Risk management functions
include
unemployment
compensation;
workmens'
compensation; property, casualty and general liability;
and medical and dental, and similar functions.
REVENUE SOURCES:
Monies may be paid into this fund from
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time
to
time
from various
city
operating
funds
as
insurance premiums, just as the City would pay private
insurance carriers premiums for insurance coverage.
Fund
revenues may also include interest earnings, operating
transfers and other revenue sources as may be designated
by the City Council.
FUND ADMINISTRATION:
The City Manager or his or her
designee.
12.
DATA PROCESSING I TELECOMMUNICATIONS FUND.
PURPOSE(S) :
This fund shall serve as the vehicle through
which to account for all costs associated with data
processing and telecommunications for the City.
This
Fund shall own and depreciate all non-proprietary fund
assets related to these functions.
It shall accumulate
reserves for the replacement of these assets.
This fund
shall
be used to pay
salaries
and operation
costs,
including equipment and furniture, associated with its
administration, and costs required to repair, replace,
purchase and operate equipment owned by this Fund.
REVENUE SOURCES:
Interfund charges shall be made to
recover
equipment
maintenance
and
operating
costs,
-14-
equipment replacement and acquisition costs, and the cost
of
Fund
administration.
other
revenues may
include
interest earnings,
proceeds
from the sale of assets,
interfund transfers, and other revenue sources designated
by the City Council.
FUND ADMINISTRATION:
The city Manager or his or her
designee.
There shall
be kept
accounts and records
necessary to control and report the financial operations
of this Fund.
OTHER GENERAL / FINANCIAL INFORMATION:
0
Revenues recorded shall be specified as either for
replacement reserves or for maintenance and operation.
Replacement
reserve
cash
shall
be
maintained
in
a
separate cash account in the accounting records.
The
replacement reserve shall only be used for equipment
replacement purposes.
0
Charges for the use of such equipment shall be
sufficient to cover the repair, replacement, purchase and
operation thereof, and the terms of the rental shall be
on an annual, monthly, or other basis as determined by
the
city
Manager
or
the
city
Manager's
designee.
Maintenance and operation costs may also be recovered on
an actual cost basis,
rather than through monthly or
other rates.
Rental rates shall be reviewed annually and
-15-
revised periodically as needed to meet changing costs of
repair,
replacement,
purchases,
and
operation.
Replacement reserve rates shall be based on depreciation
schedules which may be adjusted by the city Manager or
designee.
0
All monies deposited in the Data Processing and
Telecommunications Fund shall be used for the purposes
designated in this Ordinance.
0
Current year maintenance and operation charges in
excess of current year costs shall be returned to the
contributing
Fund
as
a
reduction
of
current
year
operating charges.
0
Accumulated replacement reserves in excess of
replacement costs for the related equipment shall be
returned
to
the
contributing
Fund.
Additional
replacement cost needs shall be contributed lump sum by
the Department using the equipment.
13. SUPPORT SERVICES FUND.
PURPOSE(S) :
This Fund is established to account for
clerical,
copier, graphics, postage and other support
services provided to Departments and Funds throughout the
city.
The City Manager shall designate the specific
types of services administered through this Fund.
All
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costs
associated
with
providing
these
services
and
administering this Fund shall be a cost of this Fund,
including,
but not limited to,
employee compensation,
supplies, equipment, and furniture.
REVENUE SOURCES:
Interfund service charges shall be made
to
recover
direct
and
administrative
costs.
other
revenues
shall
include
interfund transfers
and other
revenue sources designated by the City Council.
FUND ADMINISTRATION:
The city Manager or his or her
designee.
14. FLEET AND EQUIPMENT FUND.
PURPOSE(S) :
This fund shall serve as the vehicle through
which to account for all costs associated with operating,
maintaining
and
replacing
the
City's
non-proprietary
owned vehicular and other motorized equipment.
This Fund
shall own and depreciate all non-proprietary fund assets
of this nature.
It shall accumulate reserves for the
replacement of these assets.
This fund shall be used to
pay salaries and operating costs, including equipment and
furniture, associated with its administration, and costs
required
to
repair,
replace,
purchase
and
operate
-17-
equipment owned by this Fund.
REVENUE SOURCES:
Interfund charges shall be made to
recover
equipment
maintenance
and
operating
costs,
equipment replacement and acquisition costs, and the cost
of Fund administration.
Equipment replacement charges
shall be segregated from all other cost recoveries. other
revenues may include interest earnings, proceeds from the
sale of assets,
inter fund transfers, and other revenue
sources designated by the City Council.
FUND ADMINISTRATION:
The City Manager or his or her
designee.
There
shall
be kept accounts
and records
necessary to control and report the financial operations
of this Fund.
OTHER GENERAL/FINANCIAL INFORMATION:
0
Revenues recorded shall be specified as either for
replacement reserves or for maintenance and operations.
Replacement
reserve
cash
shall
be
maintained
in
a
separate cash account in the accounting records.
The
replacement reserve shall only be used for equipment
replacement purposes.
charges for rental of such equipment shall be
sufficient to cover the repair, replacement, purchase and
operation thereof, and the terms of the rental shall be
-18-
on an annual, monthly, daily, hourly, mileage, or other
basis as determined by the city Manager or the City
Manager's designee.
Maintenance and operating costs may
also be recovered on an actual cost basis, rather than
through monthly or other rate structures.
Rental rates
shall be reviewed annually and revised periodically as
needed to meet changing costs of repair, replacement,
purchases,
and operation.
Replacement reserve rates
shall be based on depreciation schedules which may be
adjusted by the City Manager or designee.
0
All motor vehicle equipment purchased by other city
Funds of a non-proprietary nature shall be donated to
this city Fund effective January 1,1991.
All subsequent
acquisitions shall be likewise donated to this Fund.
Where the Fleet and Equipment Fund is requested to make
the initial purchase of equipment, the benefitting or
user Fund shall provide the required resources and do so
within the calendar year of purchase.
0
All monies deposited in the Fleet and Equipment
Fund shall be used for the purposes designated in this
Ordinance.
0
Current year maintenance and operation charges in
excess of current year costs shall be returned to the
contributing
Fund
as
a
reduction
of
current
year
operating charges.
0
Accumulated replacement reserves in excess of
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replacement costs for the related equipment shall be
returned
to
the
contributing
Fund.
Additional
replacement cost needs shall be contributed lump sum by
the Department using the equipment.
15.
BUILDINGS AND FURNISHINGS FUND.
PURPOSE(S) :
The
Buildings
and
Furnishings
Fund
is
established to account for all costs associated with the
maintenance and operation of city buildings specified by
the
city
Manager.
city
building
facilities
and
furnishings
shall
be
owned
by
this
Fund
and
both
maintenance/operation
costs
and
replacement
recovery
shall be charged city Funds and Departments for included
facilities and furnishings.
Debt Service payments on
specified facility acquisitions may also be included in
this
Fund
along
with
revenues
dedicated
to
these
payments.
REVENUE SOURCES:
Interfund charges shall be made to
recover maintenance and operating costs, furnishing and
facility replacement and acquisition costs, and the cost
of Fund administration.
Other revenues may
include
interest earnings,
proceeds from the sale of assets,
interfund transfers, and other revenue sources designated
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by the City Council.
FUND ADMINISTRATION:
The City Manager or his or her
designee.
There shall be kept accounts and records
necessary to control and report the financial operations
of this Fund.
OTHER GENERAL/FINANCIAL INFORMATION:
0
Revenues recorded shall be specified as either for
replacement reserves or for maintenance and operations.
Replacement
reserve
cash
shall
be
maintained
in
a
separate cash account in the accounting records.
The
replacement
reserve
shall
only
be
used
for
asset
replacement purposes.
0
Charges for the use of such facilities and
furnishings shall be sufficient to cover the repair,
replacement,
purchase and operation thereof,
and the
terms of the rental shall be on an annual, monthly, or
other basis as determined by the city Manager or the city
Manager's
designee.
Rental rates
shall be reviewed
annually and revised periodically as needed to meet
changing costs of repair, replacement, purchases,
and
operation.
Replacement reserve rates shall be based on
depreciation
or
replacement
schedules
which
may
be
adjusted by the City Manager or designee.
0
All monies deposited in the Buildings and
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Furnishings
Fund
shall
be
used
for
the
purposes
designated in this Ordinance.
0
Current year maintenance and operation charges in
excess of current year costs shall be returned to the
contributing
Fund
as
a
reduction
of
current
year
operating charges.
0
Accumulated replacement reserves in excess of
replacement
costs
for the related assets/furnishings
shall be returned to the contributing Fund.
Additional
replacement cost needs shall be contributed lump sum by
the Department using the assets/furnishings.
16.
FEDERAL WAY RETIREMENT SYSTEM FUND.
PURPOSE(S):
Established
to
provide
a
means
of
accumulating the assets necessary to provide the benefits
which become payable under the Federal Way Retirement
system Plan,
adopted by Ordinance 90-74,
as amended.
This Fund shall account for all transactions associated
with this Plan and its administration.
This is a defined
contribution plan to which the City and employee make
legally required contributions.
This Fund accounts for
all Plan related expenditures and receipts.
Disability,
survivors,
and
lump
sum
death
benefits
for
Plan
participants are costs recorded in this Fund.
Payments
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upon retirement or termination are also expenditures
accounted for through this Fund.
REVENUE
SOURCES:
Revenues
include
legally
required
employee and employer contributions, interest earnings,
investment gains/losses, inter fund transfers, and other
sources designated by the City Council.
FUND ADMINISTRATION:
The city Manager or his or her
designee.
17.
CAPITAL PROJECT FUND.
PURPOSE(S) :
Created
by
Ordinances
to
receive
bond
proceeds and pay the cost of improvements and make the
acquisitions for which the bonds were authorized.
All
costs associated with the acquisitions, improvements, and
issue
of
the
bonds,
and
other
costs
or
transfers
authorized in Ordinances
shall be paid by this Fund.
Projects shall be established to maintain a separate
record of accounts for revenues and disbursements related
to each general obligation debt issue.
REVENUE
SOURCES:
G.O.
Bond
Proceeds,
investment
earnings, interfund transfers, and other revenue sources
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designated by the city council.
FUND ADMINISTRATION:
The City Manager or his or her
designee.
18. DEFERRED COMPENSATION FUND.
PURPOSE(S) :
This is an agency fund used to account for
assets
related
to
the
city's
employee
tax
deferred
compensation program.
Assets of the fund consist of
investments managed by the International City Management
Association Retirement Corporation, which is the program
trustee.
FUND ADMINISTRATION:
The city Manageror his or her
designee.
19. INVESTMENT CONTROL FUND.
PURPOSE(S) :
This
is
an
agency
fund established to
account for investment transactions.
It is used to
record the amount of pooled monies invested from all City
Funds.
Interest earned on the pooled investments is
distributed to individual city Funds.
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FUND ADMINISTRATION:
The City Manager or his or her
designee.
20. FEES AND TAXES CLEARING FUND.
PURPOSE(S) :
This
is
an
agency
fund established to
account receipts for which the City acts in the capacity
of
an
intermediary
collection
agency
or
temporary
depository for other governments or organizations.
FUND
ADMINISTRATION:
The
City
Manager
his
or
her
designee.
21. DONATIONS FUND.
PURPOSE(S) :
Established to receive donations of cash
designated for specific purposes identified by the donor.
This fund shall be a project based fund that shall record
all transactions associated with the donations.
REVENUE
SOURCES:
Cash
contributions
from
various
sources.
Investment earnings shall be placed in the
General Fund.
FUND ADMINISTRATION:
The City Manager or his or her
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designee.
Separate records shall be maintained for each
distinct purpose for which donations are received.
22. IMPACT FEE FUND.
PURPOSE(S) :
Established to account for revenue from
development impact fees,
authorized by state Law and
designated
for
transportation,
park
and
other
improvements.
These fees provide funding to partially
finance improvements which shall mitigate the cumulative
impacts of growth and development within the city.
REVENUE SOURCES:
Impact/mitigation fees received by the
City
for
designated
purposes,
interest
earnings,
interfund transfers, and other revenue sources that may
be designated by the City Council.
FUND
ADMINISTRATION:
The
City
Manager
his
or
her
designee.
OTHER GENERAL/FINANCIAL INFORMATION:
0
This would be a project oriented fund.
separate
records
shall
be
maintained
to
account
for
transaction
related
to
specifically
designated
receipts.
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23. PAYROLL CLEARING FUND.
PURPOSE(S) :
This agency Fund is established to account
for both city and employee
contributions
related to
employee benefit programs established by the city or as
required by state Law.
It acts as a temporary depository
for payments to other governments or organizations.
REVENUE SOURCES:
Cash transferred from city Funds and
Departments, and employee deductions.
FUND ADMINISTRATION:
The city Manager or his or her
designee.
24.STRATEGIC RESERVE FUND.
PURPOSE:
This fund is established to set aside financial
resources to be used to mitigate adverse situations
occurring as the result of severe short-term revenue
shortfalls or expenditures resulting from emergencies, or
as otherwise designated by the City Council.
The fund is
a recourse of last resort and shall be used only in the
event
no
other
reasonable
financial
management
alternatives exist as certified by the Finance Director,
or as otherwise designated by the City council.
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REVENUE
SOURCE:
This
fund
shall
be
financed
by
transferring undesignated and unreserved fund balance in
the General Fund at the end of each calendar year as
deemed appropriate by the City Council.
FUND ADMINISTRATION:
The City Manager, or his or her
designee shall administer the fund.
No transfers shall
be made from this fund without prior approval by the city
Council in the form of a resolution or ordinance.
section
2.
Authorization
for
Interfund Loan.
The
Federal Way City Council does hereby authorize the city Manager, or
his/her 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.
section 3.
Procedures for Interfund Loan.
The following
procedures shall be used for the establishment and accounting of
all interfund loans made pursuant to this ordinance.
1.
The City Manager or
his or her designee
shall
approve all
interfund
loans
and provide in the
written
authorization
a
planned
schedule
of
repayment of the loan principal and shall set a
reasonable
rate
of
interest
(based
upon
the
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4.
5.
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
interest
loan
free,
except to a proprietary fund.
3.
The
borrowing
must
anticipate
sufficient
fund
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.
The term of loan should whenever practicable be
restricted to a period of one year, but in no case
shall the term of loan exceed three years, except
for those funds which are
legally permitted to
support
appropriations,
another
through
one
transfers, advances, etc.
Only that portion of a given fund which,
in the
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prudent
management
of
municipal
finances
as
determined by the City Manager, 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.
section 4. Additional Authoritv.
The Council further
hereby grants to the city Manager, or his or her designee, the
authority to make interim, temporary loans from one fund to another
during the course of the fiscal year. The term of such loan shall
not exceed the end of the fiscal year in which loan was made.
section 5.
Repealer.
Sections 1,
2,
3,
4,
and 5 of
Ordinance 90-25, enacted February 28, 1990 are hereby repealed.
Section 6 - Ratification.
Any act consistent with the
authority and prior to the effective date of this ordinance is
hereby ratified and affirmed.
section
7
Severabilitv.
The
provisions
of
this
ordinance are declared separate and severable.
The invalidity of
any clause, sentence, paragraph, subdivision, section, or portion
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of this ordinance or the invalidity of the application thereof to
any person or circumstance, shall not affect the validity of the
remainder of the ordinance, or the validity of its application to
other persons or circumstances.
section 8 - Effective Date.
This ordinance shall be
effective
five
(5)
days
after passage
and publication
of
an
approved summary of this ordinance.
this n rlA~;~D o~y Jj;~o~~~~~
of the City of Federal Way
3~AJ £i?w
Mayor, Debra Ertel
ATTEST:
(JdJJ~
'.:]~
CITY ATTORNEY,
FORM:
SAND~RISCOLL
FILED WITH THE CITY CLERK: 12/17/91
PASSED BY THE CITY COUNCIL:12/17/91
PUBLISHED: 12/20/91
EFFECTIVE DATE: 12/25/91
ORDINANCE NO. 91-121
LA\EF\ORD\fundord
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