Chapter 7
FINANCE

Articles:

I. In General

II. Funds

Article I.
IN GENERAL

Sections:

7-1 Investment account – Deposit, withdrawal of funds.

7-2 Investment account – Signatories.

7-3 Biennial budget – Mid-biennial review and modification.

7-4 – 7-30 Reserved.

7-1 Investment account – Deposit, withdrawal of funds.

The city hereby authorizes the deposit and withdrawal of city monies in and from the local government investment account in the state treasury in accordance with RCW 43.250.010 et seq. for the purpose of investment as stated therein. (Res. No. 90-20, § 1, 3-20-90)

7-2 Investment account – Signatories.

The city council hereby authorizes those persons whose names, titles and signatures are on file in the city clerk’s office as designated by the city council to order the deposit or withdrawal of monies in the local government investment account. (Res. No. 90-20, § 2, 3-20-90)

7-3 Biennial budget – Mid-biennial review and modification.

(a) 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 Federal Way, beginning with the two-year biennium which begins January 1, 1997. The 1997-1998 biennial budget and all subsequent budgets shall be prepared, considered and adopted under the provisions of this ordinance and Chapter 35A.34 RCW which is hereby adopted by reference.

(b) 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 manager shall prepare proposed budget modifications to be effective as of January 1st of the following year. Such proposed modifications shall be sent to city councilmembers 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. No. 96-267, §§ 1, 2, 5-21-96)

Editor’s note – Ord. No. 96-267, adopted May 21, 1996, has been codified herein at the discretion of the editor as § 7-3.

7-4 – 7-30 Reserved.

Article II.
FUNDS

Sections:

7-31 Risk management fund.

7-32 Arterial street fund.

7-33 General fund.

7-34 Street fund.

7-35 Advance travel expenses revolving fund.

7-36 Special deposit fund.

7-37 Capital improvement fund.

7-38 Real estate excise tax fund – First.

7-39 Real estate excise tax fund – Second.

7-40 Miscellaneous government grants.

7-41 Community development block grant fund.

7-42 Path and trails reserve fund.

7-43 Surface water management fund.

7-44 Councilmanic debt service fund.

7-45 Data processing/telecommunications fund.

7-46 Support services fund.

7-47 Fleet and equipment fund.

7-48 Buildings and furnishings fund.

7-49 Retirement system fund.

7-50 Capital project fund.

7-51 Deferred compensation fund.

7-52 Investment control fund.

7-53 Fees and taxes clearing fund.

7-54 Donation fund.

7-55 Impact fee fund.

7-56 Payroll clearing fund.

7-57 Strategic reserve fund.

7-57.1 Solid waste/recycling fund.

7-57.2 Special contracts/studies fund.

7-57.3 Capital project – Parks fund.

7-57.4 Capital project – SWM fund.

7-57.5 Capital project – Traffic fund.

7-57.6 Capital project – Street fund.

7-57.7 Retreat center fund.

7-57.8 Strategic airport reserve fund.

7-58 Interfund loan – Authorization.

7-59 Interfund loan – Procedures.

7-60 Interfund loan – Additional authority.

7-31 Risk management fund.

There is hereby established a fund known as the risk management fund as follows:

(1) Purpose. This fund is to provide the vehicle for financial administration of the city’s comprehensive risk 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 entities 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’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; workmen’s compensation; property, casualty and general liability; and medical and dental, and similar functions.

(2) Revenue sources. Monies may be paid into this fund from 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.

(3) Fund administration. The city manager or his or her designee. (Ord. No. 91-121, § 1(11), 12-17-91)

7-32 Arterial street fund.

There is hereby established an arterial street fund as follows:

(1) Purpose. 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, 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.

(2) 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.

(3) Fund administration. The city manager or his or her designee. (Ord. No. 90-25, § 2, 2-13-90; Ord. No. 91-121, § 1(3), 12-17-91)

7-33 General fund.

There is hereby established a general fund, as authorized by RCW 35A.37.010 and 35.37.010, as follows:

(1) Purpose. To account for all receipt and disbursement transactions associated with ordinary city operations that are to required to be accounted for in another fund.

(2) 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.

(3) Fund administration. The city manager or his or her designee. (Ord. No. 90-25, § 4, 2-13-90; Ord. No. 91-121, § 1(1), 12-17-91)

7-34 Street fund.

There is hereby established a street fund as follows:

(1) Purpose. 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.

(2) 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.

(3) Fund administration. The city manager or his or her designee. (Ord. No. 90-25, § 5, 2-13-90; Ord. No. 91-121, § 1(2), 12-17-91)

7-35 Advance travel expenses revolving fund.

(a) Pursuant to RCW 42.24.120 et seq. and in order to provide reasonable allowances in advance of expenditure for expenses to be incurred by elected or appointed officials and employees of the city for necessary official travel, there is established a revolving fund, to be known as the advance travel expense revolving fund, such fund to be used solely for the purpose of making advance payments of such travel expenses. Such advances shall be made under the provisions of RCW 42.24.120 et seq., this section, and under the rules and regulations prescribed by the state auditor.

(b) The custodian of the advance travel expense revolving fund shall be the city finance director, and the fund shall be established by transfer from the general fund in the sum of $5,000, which shall be deposited in a special checking account in a local bank in the name of the city and entitled “Advance Travel Expense Account – City Finance Director, (name of person holding office) Custodian.” Advances for travel expenses shall be made by the issuance of checks drawn on such account payable to the applicant. A check register will be maintained in which all transactions of the fund will be recorded. (Ord. No. 90-25, § 6, 2-13-90)

7-36 Special deposit fund.

There is hereby established a special deposit fund into which monies shall be deposited which are received by the city in the nature of cash deposits to assure performance and such other funds as are to be held by the city for such purposes. Interest earned on such funds while in the custody of the city shall be deposited into the general fund of the city. (Ord. No. 90-25, § 8, 2-13-90)

7-37 Capital improvement fund.

There is hereby created a special fund to be known as the capital improvement fund into which shall be deposited all proceeds of the tax imposed by FWCC 14-36 through 14-45 and distributed to the city. The funds shall be expended pursuant to RCW 35.43.040. (Ord. No. 89-8, § 8, 11-28-89)

7-38 Real estate excise tax fund – First.

There is hereby established a fund known as the first 0.25 percent real estate excise tax fund as follows:

(1) Purpose. For the receipt and disbursement of the 0.25 percent 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.

(2) Revenue sources. One-quarter of one percent real estate excise tax authorized by RCW 82.46.010, and other revenues that may be authorized by the city council.

(3) Fund administration. The city manager or his or her designee. (Ord. No. 91-121, § 1(4), 12-17-91)

7-39 Real estate excise tax fund – Second.

There is hereby established a fund known as the second 0.25 percent real estate excise tax fund as follows:

(1) Purpose. For the receipt and expenditure of the additional 0.25 percent 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.

(2) Revenue sources. Second 0.25 percent real estate excise tax authorized by RCW 82.46.035 and other revenue sources as may be authorized by the city council.

(3) Fund administration. The city manager or his or her designee. (Ord. No. 91-121, § 1(5), 12-17-91)

7-40 Miscellaneous government grants.

There is hereby established a fund known as the miscellaneous government grants as follows:

(1) Purpose. 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 purposes specified by the terms of each such individual grant.

(2) Revenue sources. Grants from various government and nongovernmental agencies, city contributions, or other revenue sources as may be authorized by the city council.

(3) 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 such 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.

(4) Other general/financial information.

a. 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.

b. 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 such 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 such fund. Where interest is required by law, the finance director shall designate the appropriate rate. (Ord. No. 91-121, § 1(6), 12-17-91)

7-41 Community development block grant fund.

There is hereby established a fund known as the community development block grant fund as follows:

(1) Purpose. A project fund established in which to place 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.

(2) Revenue sources. Grant revenues received through community development block grant program, city contributions or other revenue sources as may be authorized by the city council.

(3) 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 such 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.

(4) Other general/financial information.

a. Projects established. Individual grant projects 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.

b. 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 such 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 such fund. Where interest is required by law, the finance director shall designate the appropriate rate. (Ord. No. 91-121, § 1(7), 12-17-91)

7-42 Path and trails reserve fund.

There is hereby established a fund known as the path and trails reserve fund as follows:

(1) Purpose. 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 for pedestrians, equestrians or bicyclists. 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. Monies set aside in this reserve fund must be expended within 10 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.

(2) Revenue sources. Motor vehicle fuel taxes received from the motor vehicle fund according to the provisions of RCW 46.68.100.

(3) Fund administration. The city manager or his or her designee shall have responsibility for the financial administration of this reserve fund. (Ord. No. 91-121, § 1(8), 12-17-91)

7-43 Surface water management fund.

There is hereby established a fund for surface water management as follows:

(1) Purpose. Established to administer and account for all receipts and disbursements related to the city’s surface and stormwater management system. All service 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 stormwater 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 pay or secure the payment of all or any portion of any issue of general obligation or revenue bond issued for such purpose.

(2) 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.

(3) Fund administration. The city manager or his or her designee.

(4) 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. (Ord. No. 91-121, § 1(9), 12-17-91)

7-44 Councilmanic debt service fund.

There is hereby established a fund known as the councilmanic debt service fund as follows:

(1) Purpose. 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.

(2) Revenue sources. Allocations of the city’s regular levy property taxes, operation transfers from the 0.25 percent 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.

(3) Fund administration. The city manager or his or her designee.

(4) 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. (Ord. No. 91-121, § 1(10), 12-17-91)

7-45 Data processing/telecommunications fund.

There is hereby established a fund known as the data processing/telecommunications fund as follows:

(1) Purpose. 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 nonproprietary 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.

(2) 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. Other revenues may include interest earnings, proceeds from the sale of assets, interfund transfers, and other revenue sources designated by the city council.

(3) 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.

(4) Other general/financial information.

a. 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.

b. 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 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.

c. All monies deposited in the data processing and telecommunications fund shall be used for the purposes designated in this section.

d. 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.

e. 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. (Ord. No. 91-121, § 1(12), 12-17-91)

7-46 Support services fund.

There is hereby established a fund known as the support services fund as follows:

(1) Purpose. 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 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.

(2) 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.

(3) Fund administration. The city manager or his or her designee. (Ord. No. 91-121, § 1(13), 12-17-91)

7-47 Fleet and equipment fund.

There is hereby established a fund known as the fleet and equipment fund as follows:

(1) Purpose. This fund shall serve as the vehicle through which to account for all costs associated with operating, maintaining and replacing the city’s nonproprietary owned vehicular and other motorized equipment. This fund shall own and depreciate all nonproprietary 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 equipment owned by this fund.

(2) 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, interfund transfers and other revenue sources designated by the city council.

(3) 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.

(4) Other general/fund information.

a. 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.

b. 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 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 his or her designee.

c. All motor vehicle equipment purchased by other city funds of a nonproprietary 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.

d. All monies deposited in the fleet and equipment fund shall be used for the purposes designated in this section.

e. 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.

f. 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. (Ord. No. 91-121, § 1(14), 12-17-91)

7-48 Buildings and furnishings fund.

There is hereby established a fund known as the buildings and furnishings fund as follows:

(1) Purpose. 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.

(2) 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 by the city council.

(3) 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.

(4) Other general/financial information.

a. 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.

b. 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 his or her designee.

c. All monies deposited in the buildings and furnishings fund shall be used for the purposes designated in this section.

d. 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.

e. 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. (Ord. No. 91-121, § 1(15), 12-17-91)

7-49 Retirement system fund.

There is hereby established a fund known as the retirement system fund as follows:

(1) Purpose. Established to provide a means of accumulating the assets necessary to provide the benefits which become payable under the retirement system plan, adopted by Ordinance No. 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 upon retirement or termination are also expenditures accounted for through this fund.

(2) Revenue sources. Revenues include legally required employee and employer contributions, interest earnings, investment gains/losses, interfund transfers and other sources designated by the city council.

(3) Fund administration. The city manager or his or her designee. (Ord. No. 91-121, § 1(16), 12-17-91)

7-50 Capital project fund.

There is hereby established a fund known as the capital project fund as follows:

(1) Purpose. 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.

(2) Revenue sources. General obligation bond proceeds, investment earnings, interfund transfers and other revenue sources designated by the city council.

(3) Fund administration. The city manager or his or her designee. (Ord. No. 91-121, § 1(17), 12-17-91)

7-51 Deferred compensation fund.

There is hereby established a fund known as the deferred compensation fund as follows:

(1) Purpose. 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 investment managed by the International City Management Association Retirement Corporation, which is the program trustee.

(2) Fund administration. The city manager or his or her designee. (Ord. No. 91-121, § 1(18), 12-17-91)

7-52 Investment control fund.

There is hereby established a fund known as the investment control fund as follows:

(1) Purpose. This is an agency fund establish 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.

(2) Fund administration. The city manager or his or her designee. (Ord. No. 91-121, § 1(19), 12-17-91)

7-53 Fees and taxes clearing fund.

There is hereby established a fund known as the fees and taxes clearing fund as follows:

(1) Purpose. 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.

(2) Fund administration. The city manager or his or her designee. (Ord. No. 91-121, § 1(20), 12-17-91)

7-54 Donation fund.

There is hereby established a fund known as the donations fund as follows:

(1) Purpose. 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.

(2) Revenue sources. Cash contributions from various sources. Investment earnings shall be placed in the general fund.

(3) Fund administration. The city manager or his or her designee. Separate records shall be maintained for each distinct purpose for which donations are received. (Ord. No. 91-121, § 1(21), 12-17-91)

7-55 Impact fee fund.

There is hereby established a fund known as the impact fee fund as follows:

(1) Purpose. 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.

(2) 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.

(3) Fund administration. The city manager or his or her designee.

(4) Other general/financial information. This would be a project oriented fund. Separate records shall be maintained to account for transactions related to specifically designated receipts. (Ord. No. 91-121, § 1(22), 12-17-91)

7-56 Payroll clearing fund.

There is hereby established a fund known as the payroll clearing fund as follows:

(1) Purpose. 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.

(2) Revenue sources. Cash transferred from city funds and departments, and employee deductions.

(3) Fund administration. The city manager or his or her designee. (Ord. No. 90-25, § 1, 2-13-90; Ord. No. 91-121, § 1(23), 12-17-91)

7-57 Strategic reserve fund.

There is hereby established a fund known as the strategic reserve fund as follows:

(1) 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.

(2) 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.

(3) 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. (Ord. No. 91-121, § 1(24), 12-17-91)

7-57.1 Solid waste/recycling fund.

There is hereby established a fund known as the solid waste/recycling fund as follows:

(1) Purpose. To account for the special refuse collection fees used to manage the solid waste and recycling program.

(2) Revenue sources. Revenues supporting this fund’s activities include refuse collection fees, grant funds, interest earnings and other revenue sources as may be authorized by the city council.

(3) 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. (Ord. No. 93-196, § 1(25), 12-7-93)

7-57.2 Special contracts/studies fund.

There is hereby established a fund known as the special contracts/studies fund as follows:

(1) Purpose. To account for receipts and disbursements related to special contracts and special projects where completion is likely to extend beyond the calendar year.

(2) Revenue source. Revenues supporting this fund’s activities include intergovernmental revenues, interfund transfers, interest earnings and other revenue sources as may be authorized by the city council.

(3) Fund administration. The city manager or his or her designee.

(4) Other general/financial information. Fund appropriations shall not lapse at the end of any calendar year but shall remain in effect until the project is completed. (Ord. No. 93-196, § 1(26), 12-7-93)

7-57.3 Capital project – Parks fund.

There is hereby established a fund known as the capital project – Parks fund as follows:

(1) Purpose. To account for receipts and disbursements related to acquisition, design, construction and any other related park’s capital project expenditures.

(2) Revenue sources. Revenues supporting this fund’s activities include bond proceeds, grant proceeds, mitigation fees, interfund transfers and other revenue sources as may be authorized by the city council.

(3) 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.

(4) Other general/financial information. Fund appropriations shall not lapse at the end of any calendar year but shall remain in effect until the project is completed.

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. (Ord. No. 93-196, § 1(27), 12-7-93)

7-57.4 Capital project – SWM fund.

There is hereby established a fund known as the capital project – SWM fund as follows:

(1) Purpose. To account for receipts and disbursements related to acquisition, design, construction and any other related park’s capital project expenditures.

(2) Revenue sources. Revenues supporting this fund’s activities include bond proceeds, grant proceeds, mitigation fees, interfund transfers and other revenue sources as may be authorized by the city council.

(3) 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.

(4) Other general/financial information. Fund appropriations shall not lapse at the end of any calendar year but shall remain in effect until the project is completed.

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. (Ord. No. 93-196, § 1(28), 12-7-93)

7-57.5 Capital project – Traffic fund.

There is hereby established a fund known as the capital project – Traffic fund as follows:

(1) Purpose. To account for receipts and disbursements related to acquisition, design, construction and any other related park’s capital project expenditures.

(2) Revenue sources. Revenues supporting this fund’s activities include bond proceeds, grant proceeds, mitigation fees, interfund transfers and other revenue sources as may be authorized by the city council.

(3) 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.

(4) Other general/financial information. Fund appropriations shall not lapse at the end of any calendar year but shall remain in effect until the project is completed.

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. (Ord. No. 93-196, § 1(29), 12-7-93)

7-57.6 Capital project – Street fund.

There is hereby established a fund known as the capital project – street fund as follows:

(1) Purpose. To account for receipts and disbursements related to acquisition, design, construction and any other related park’s capital project expenditures.

(2) Revenue sources. Revenues supporting this fund’s activities include bond proceeds, grant proceeds, mitigation fees, interfund transfers and other revenue sources as may be authorized by the city council.

(3) 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.

(4) Other general/financial information. Fund appropriations shall not lapse at the end of any calendar year but shall remain in effect until the project is completed.

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. (Ord. No. 93-196, § 1(30), 12-7-93)

7-57.7 Retreat center fund.

There is hereby established a fund known as the retreat center fund as follows:

(1) Purpose. To account for the revenues and expenses related to the acquisition, capital improvements, maintenance and operations of the city-owned retreat center facility. This fund is established as an enterprise fund whereby the intent is to recover, primarily through user charges, the costs (expenses, including depreciation) of providing services to the general public on a continuing basis.

(2) Revenue sources. Revenues supporting this fund’s activities include bond anticipation note proceeds, intergovernmental revenues, user fees, interfund transfers and other revenue sources as may be authorized by the city council.

(3) Fund administration. The city manager or his or her designee.

(4) 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. (Ord. No. 93-196, § 1(31), 12-7-93)

7-57.8 Strategic airport reserve fund.

There is hereby established a fund known as the strategic airport reserve fund as follows:

(1) Purpose. To account for monies held in reserve for the specific purpose of potentially funding actions necessary to safeguard the public interest of Federal Way as it relates to planned expansion of the SeaTac Airport.

(2) Revenue sources. Revenues to support this account shall be transferred from the city’s existing strategic reserve fund, or other revenue sources as may be authorized by the city council.

(3) Fund administration. City manager or his or her designee; provided, however, that no disbursement from this fund shall be made without prior authorization by the city council. (Ord. No. 93-196, § 1(32), 12-7-93)

7-58 Interfund loan – Authorization.

The city council does hereby authorize the city manager, or his or her designee, no 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. (Ord. No. 91-121, § 2, 12-17-91)

7-59 Interfund loan – Procedures.

The following procedures shall be used for the establishment and accounting of all interfund loans made pursuant to this article:

(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 external rate available to the city, to be paid to the lending fund.

(2) Interest shall be charged in all cases unless:

a. The borrowing fund has no independent source of revenue other than the lending fund;

b. The borrowing fund is normally funded by the lending fund; or

c. The lending fund is the general fund, which, being unrestricted can loan interest-free, except to a proprietary fund.

(3) The borrowing fund must anticipate sufficient revenues to be in a position over the period of the loan to make the specified principal and interest payments as required in the authorizing ordinance.

(4) The term of loan should whenever practicable be restricted to a period of one year, but in no case shall the term of loan exceed three years, except for those funds which are legally permitted to support one another through appropriations, transfers, advances, etc.

(5) Only that portion of a given fund which, in the prudent management of municipal finances as determined by the 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. (Ord. No. 91-121, § 3, 12-17-91)

7-60 Interfund loan – Additional authority.

The city 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. (Ord. No. 91-121, § 4, 12-17-91)