Title 3
REVENUE AND FINANCE

Chapters:

3.02 Collections

3.03 Payment Methods for City Obligations

3.04 Street Fund

3.08 Cemetery Fund

3.12 Cumulative Reserve Fire Equipment Fund

3.16 General Equipment Reserve and Replacement Fund

3.20 Police Vehicle Equipment Reserve and Replacement Fund

3.24 Cumulative Reserve Water Department Fund

3.28 Garbage Collection Fund

3.30 Claims Against the City

3.32 Local Improvement Guaranty Fund

3.33 Local Improvement District Construction Fund

3.34 Community Improvement Fund

3.35 Park System Improvement Fund

3.36 Petty Cash Fund

3.37 Police Petty Cash Fund

3.38 Drug Enforcement Fund

3.40 Utility Cumulative Reserve Fund

3.42 Baseball Field Project Fund

3.44 Utility Fund

3.45 Sewer System Improvement Fund

3.46 Driving While Intoxicated Grant Fund

3.47 Water System Improvement Fund

3.48 Sales and Use Tax

3.50 Real Estate Excise Tax

3.51 Additional Real Estate Excise Tax

3.52 Utility Tax

3.53 Water Utility Debt Service Fund

3.54 Sewer Utility Debt Service Fund

3.56 Local Improvements – Foreclosure of Assessments

3.60 Sale and Disposal of Personal Property

3.62 Sale and Disposal of Real Property

3.64 Registration of Bonds and Obligations

3.68 Donations

3.70 Art in Public Places

3.72 Retainage Bonds

Chapter 3.02
COLLECTIONS

Sections:

3.02.010 Dishonored check fee.

3.02.010 Dishonored check fee.

If any person, association, or corporation shall pay any tax, fee or charge of the city by a check which is dishonored or not paid upon presentation for any reason whatsoever, such person, association or corporation shall pay to the city office or department designated as payee upon any such check, in addition to any other cost, fee penalty or interest allowed by law, a dishonored check fee which shall be set by the city council and be based upon costs of processing and giving notice with respect to such check. Such sum shall be payable upon the date of dishonor and shall be subject to all interest, penalties and costs to which the sum paid by check would be subject. (Ord. 434 § 1, 1983)

Chapter 3.03
PAYMENT METHODS FOR CITY OBLIGATIONS

Sections:

3.03.010 Payment methods for city obligations.

3.03.020 Authorization to set limits.

3.03.030 Costs.

3.03.010 Payment methods for city obligations.

The city is authorized to accept payments by credit card and debit card for payment of city imposed fees, fines, rates and charges. A payer desiring to pay by one of these methods may be required to bear the cost of processing the transaction in an amount to be determined by the finance department. Such determination shall be based on the actual cost incurred by the city including handling, collection, discount, disbursing and accounting for the transaction. (Ord. 846-04 § 1)

3.03.020 Authorization to set limits.

The clerk/treasurer or city administrator are authorized to approve the acceptance of credit cards or debit cards by a city department for the payment of city imposed fees, fines, rates and charges. No department shall accept credit or debit cards without such approval. The finance department is further authorized to establish appropriate internal control procedures and set any limitations concerning the acceptance of these alternative payment methods on participating departments. (Ord. 846-04 § 1)

3.03.030 Costs.

Each department authorized to use one of the alternative payment methods shall be responsible for the associated costs. The finance department will establish the accounting system to track associated costs with the use of the alternative payment methods and will charge the costs back to the accepting departments on a monthly basis. (Ord. 846-04 § 1)

Chapter 3.04
STREET FUND*

Sections:

3.04.010 Funds combined to create one fund.

3.04.020 Arterial street fund closure.

3.04.030 Severability.

*Prior legislation: Ords. 445 and 252.

3.04.010 Funds combined to create one fund.

In accordance with RCW 46.60.115, the street fund and the arterial street fund are hereby combined to create the city street fund. (Ord. 632, 1995)

3.04.020 Arterial street fund closure.

The arterial street fund is hereby closed and all assets and liability of the arterial street fund at the end of 1995 shall be transferred to the city street fund. (Ord. 632, 1995)

3.04.030 Severability.

The provisions of this chapter are declared to be separate and severable. The invalidity of any clause, sentence, paragraph, subdivision, section or portion of this chapter, or the invalidity of the application thereof to any person or circumstances shall not affect the validity of the remainder of this chapter, or the validity of its application to other persons or circumstances. (Ord. 632, 1995)

Chapter 3.08
CEMETERY FUND

Sections:

3.08.010 Establishment.

3.08.010 Establishment.

There is established a fund to be known as the cemetery fund into which all income derived from the operation of the cemetery shall be deposited and from which all expenses required by the operation of said department shall be paid. (Ord. 382 § 4, 1979)

Chapter 3.12
CUMULATIVE RESERVE FIRE EQUIPMENT FUND

Sections:

3.12.040 Establishment.

3.12.050 Appropriation authorization.

3.12.060 Accumulation and expenditure.

3.12.070 Designated – Exceptions.

3.12.040 Establishment.

There is created and established a fund to be known as the cumulative reserve fire equipment fund, pursuant to the provisions of Chapter 60, Laws of 1941. (Ord. 191 § 4, 1946)

3.12.050 Appropriation authorization.

The purpose of accumulating said fund, the city council shall be, and it is authorized to appropriate each year, at the time of the making and adoption of the annual budget of said city, an item money for said fund, and to include said item in said annual budget each year, and to make a tax levy within the limits as authorized by law for said item, and may include any money paid to the city for fire protection by a fire district organized under the Laws of Washington. (Ord. 191 § 5, 1946)

3.12.060 Accumulation and expenditure.

The money placed in said cumulative reserve fire equipment fund shall accumulate from year to year and shall be carried over each year into the new budget and may be expended at such time as the council may direct by resolution for the purposes of purchasing additional firefighting equipment or apparatus for the city of Sultan. (Ord. 191 § 6, 1946)

3.12.070 Designated – Exceptions.

A. Any money in either the cumulative reserve building fund or the cumulative reserve fire equipment fund shall never be expended for any other purpose than that specified except, however, by an approving vote on a proposal submitted to the electors of the city of Sultan at a special election or a general election voting on a proposal submitted to said electors to allow other specified uses to be made of said funds or fund.

B. In accordance with the provisions of Chapter 60 of the Laws of 1941, said approving vote must be made by a majority of the electors of the city of Sultan. (Ord. 191 § 7, 1946)

Chapter 3.16
GENERAL EQUIPMENT RESERVE AND REPLACEMENT FUND*

Sections:

3.16.010 Establishment and purpose.

3.16.020 Funding sources.

3.16.030 Expenditures.

*Prior legislation: Ord. 244.

3.16.010 Establishment and purpose.

There is hereby created a general equipment reserve and replacement fund (formerly titled cumulative reserve equipment fund) which shall be used for the purpose of establishing reserves and funding for major capital equipment purchases, upgrades and replacements that have been appropriated in the annual operating budget. (Ord. 678-97)

3.16.020 Funding sources.

The fund shall initially be established through operating transfers from the general, street, cemetery, water, sewer and garbage funds. Thereafter, annual operating transfers shall be made from each fund. These operating transfers shall be based on a straight line depreciation calculation method for existing equipment. Revenues from the sale of equipment assets shall also be accounted for in this fund. (Ord. 678-97)

3.16.030 Expenditures.

Expenditures from the fund shall be made as appropriated and authorized in the city’s annual operating budget. The council shall establish specific policies and procedures for acquisition and surplus of equipment. (Ord. 678-97)

Chapter 3.20
POLICE VEHICLE EQUIPMENT RESERVE AND REPLACEMENT FUND

Sections:

3.20.010 Establishment and purpose.

3.20.020 Funding sources.

3.20.030 Expenditures.

3.20.010 Establishment and purpose.

There is hereby created a police vehicle equipment reserve and replacement fund which shall be used for the purpose of establishing reserves and funding for police vehicle equipment purchases, upgrades and replacements that have been appropriated in the annual operating budget. (Ord. 939-06)

3.20.020 Funding sources.

The fund shall initially be established through operating transfers from the general and general equipment fund reserves for police equipment. Thereafter, annual operating transfers may be made from the general fund. Revenues from the sale of equipment assets shall also be accounted for in this fund. As set by budget each year, a portion of the utility tax collected on telephones, gas and electrical services may be allocated for police vehicle purposes. (Ord. 939-06)

3.20.030 Expenditures.

Expenditures from the fund shall be made as appropriated and authorized in the city’s annual operating budget. The council shall establish specific policies and procedures for acquisition and surplus of equipment. (Ord. 939-06)

Chapter 3.24
CUMULATIVE RESERVE WATER DEPARTMENT FUND

Sections:

3.24.010 Establishment – Statutory authority.

3.24.020 Appropriation authorization.

3.24.030 Accumulation and expenditure.

3.24.040 Prohibited expenditures – Exceptions.

3.24.010 Establishment – Statutory authority.

There is established a fund to be known as the cumulative reserve water department fund, pursuant to the provisions of Chapter 60, Laws of 1941. (Ord. 205 § 1, 1949)

3.24.020 Appropriation authorization.

For the purpose of accumulating said fund, the city council shall be and is authorized to appropriate each year, at the time of the making and adoption of the annual budget of said city, an item of money for said fund, and to include said item in said annual budget each year, and they may allocate a fixed sum to be placed in said fund each month from water rents received for said fund. (Ord. 205 § 2, 1949)

3.24.030 Accumulation and expenditure.

The money placed in said cumulative reserve water department fund shall accumulate from year to year and shall be carried over each year into the new budget, and may be expended at such time as the council may by resolution direct for the purposes of construction, extension, repair and betterment of the municipal water system, and headworks and reservoir, or for the purchase of rights-of-way, and/or necessary land. (Ord. 205 § 3, 1949)

3.24.040 Prohibited expenditures – Exceptions.

A. Any money in said cumulative reserve water department fund shall never be expended for any purposes other than that specified in SMC 3.24.030; provided, however, by an approving vote on a proposal submitted to the electors of the city of Sultan at a special election or a general election voting on a proposal submitted to said electors to allow other specified uses to be made of said funds or any part thereof.

B. In accordance with the provisions of Chapter 60, Laws of 1941, said approving vote must be made by a majority of the electors of the city. (Ord. 205 § 4, 1949)

Chapter 3.28
GARBAGE COLLECTION FUND

Sections:

3.28.010 Establishment.

3.28.010 Establishment.

There is established a fund to be known as the garbage collection fund into which all income derived from the operation of the garbage collection and control department shall be deposited and from which all expenses required by the operation of said department shall be paid. (Ord. 304 § 10, 1964)

Chapter 3.30
CLAIMS AGAINST THE CITY

Sections:

3.30.010 Filing.

3.30.020 Contents of claim – Filing on behalf of claimant.

3.30.030 Bar to action.

3.30.040 Action maintained.

3.30.050 Duties of city clerk/treasurer.

3.30.060 Duties of city attorney.

3.30.070 Manner of processing claims.

3.30.080 Defense of city officers and employees.

3.30.090 Recovery of losses.

3.30.100 Establishment of insurance claims fund.

3.30.110 Authority for payment.

3.30.120 Invalid claim – Action prohibited.

3.30.010 Filing.

All claims for damages or injuries against the city arising out of tortious conduct shall be presented in writing and filed with the clerk/treasurer of the city. (Ord. 475, 1986)

3.30.020 Contents of claim – Filing on behalf of claimant.

A. All claims for damages or injuries against the city provided for in SMC 3.30.010 shall accurately state the time, place, source, nature and extent of the alleged damages or injuries, and give the actual residence of the claimant by street and number at the date of presenting such claim and for six months immediately prior to the time such claims for damages occurred and shall be verified by affidavit of the claimant, or such other person, as may be authorized by law to verify such claims to the effect that the same is true.

B. If the claimant is incapacitated from verifying and filing his claim for damages within the time prescribed, or if the claimant is a minor, in case the claim is for damages to real or personal property, and if the owner of such property is a nonresident of such city or is absent therefrom during the time within which a claim for damages to said property is required to be filed, then the claim may be verified and presented on behalf of the claimant by any relative or attorney or agency representing the injured person, or in case of damages to property, representing the owner thereof. (Ord. 475, 1986)

3.30.030 Bar to action.

The omission to present any claim for damages or injuries against the city in the manner or within the time this chapter provides shall be a bar to any action against the city therefor. (Ord. 475, 1986)

3.30.040 Action maintained.

No action shall be maintained against the city for any claim for damage or injuries until presentation and filing of such claim to the city clerk/treasurer of Sultan. (Ord. 475, 1986)

3.30.050 Duties of city clerk/treasurer.

Upon presentation of any claim for damages or injuries against the city, the clerk/treasurer shall indelibly mark on such claim the date of receipt and shall forthwith deliver a true and complete copy of said claim to the city attorney. (Ord. 475, 1986)

3.30.060 Duties of city attorney.

The law department shall promptly examine all claims for damages or injuries against the city submitted to him by the clerk/treasurer of the city. The law department is authorized to conduct such investigation into the facts, circumstances and law relative to any claim for damages or injuries against the city as he, in the exercise of his discretion, may deem necessary. Such investigations may be conducted by the risk manager or claims investigators under the city attorney’s directions. (Ord. 475, 1986)

3.30.070 Manner of processing claims.

The law department shall process claims for damages or injuries in the following manner:

A. Claims for damages or injuries up to $1,000 shall be allowed, disallowed or otherwise settled by a finance committee consisting of two members of the city council, the city attorney and the risk manager, and the department head from the city department from which the claim arises.

B. All claims exceeding $1,000 which have been reviewed by the city attorney shall be submitted to the city council for their approval, disapproval or settlement.

C. The risk manager, city attorney or the finance committee may, in their discretion, refer any claim to the city council. (Ord. 475, 1986)

3.30.080 Defense of city officers and employees.

A. Purpose. The purpose of this section is to protect city officers, employees and their marital communities from personal liability for acts committed by such officers and employees within the scope of their official city duties.

B. Determinations of Scope and Status. The city attorney shall determine any and all questions relating to the following issues:

1. Whether acts performed by a city officer or employee were within the scope of that person’s official city duties; and

2. Whether for purposes of the issues raised by a claims lawsuit, a particular person is in fact, a city officer or employee.

C. Responsibility for Defense. Where a city officer, employee, or the marital community of such officer or employee is sued in a claims lawsuit for an act or alleged act falling within the scope of the officer’s or employee’s official duties, the city attorney shall be responsible for defense of that person or community in accordance with the procedure specified within this title.

D. Exclusions. This section shall not apply where a claims lawsuit is covered by insurance or where a claims lawsuit arises out of a city officer’s or employee’s use of his personal vehicle.

E. Possible Conflicts. Where a possible conflict exists between the city and a city official or employee acting within the scope of his or her official duties, and where both are named as parties in the same claims lawsuit, the city attorney may decline to represent that person and his or her marital community. In such cases where the city attorney declines representation, the city shall be responsible for payment of reasonable attorney’s fees and costs incurred in the defense of the city officer or employee. (Ord. 475, 1986)

3.30.090 Recovery of losses.

A. Actions for Recovery. The city attorney may be responsible for bringing all actions, including claims and lawsuits, for recovery of the losses to the city arising out of the acts of others. Such losses may include property damages or losses which impact on the city as a result of personal injuries to city officers or employees. In addition, the city attorney may join the city of Sultan as a party with any third party in a lawsuit involving recovery of loss to the city of Sultan.

B. Allocation of Recoveries. Any moneys recovered by the city attorney on account of losses to the city shall be paid to the departmental fund which has expended funds and/or materials as a result of the loss. Any moneys in excess of those so expended shall be transferred to the insurance claims fund. (Ord. 475, 1986)

3.30.100 Establishment of insurance claims fund.

There is established a fund to be known as the insurance claims fund for which funds will be put into reserve for the purpose of paying claims for damages or injuries against the city not otherwise covered by city insurance or ordinances of the city. (Ord. 475, 1986)

3.30.110 Authority for payment.

Approval or settlement according to SMC 3.30.070 shall be approved for payment by the city clerk/treasurer. (Ord. 475, 1986)

3.30.120 Invalid claim – Action prohibited.

Neither the city council nor any department or officer or authority shall allow, make valid or in any manner recognize any demand against the city which was not at the time of its creation a valid claim against the city; nor shall they, or any of them, allow or authorize to be paid any demands which without such action would be invalid or which shall have been barred by any statute of limitations or for which the city was never liable; and any such action shall be null and void. (Ord. 475, 1986)

Chapter 3.32
LOCAL IMPROVEMENT
GUARANTY FUND

Sections:

3.32.010 Establishment.

3.32.020 Disbursements – Warrant issuance.

3.32.030 Delinquent assessments – Notice to city council – Contents.

3.32.040 Delinquent assessments – General taxes foreclosure by county – Council to direct payment.

3.32.050 Council’s authority to lease or dispose of property purchased for protection of local improvement district.

3.32.060 Use of moneys – City not obligated to make payments in case of insufficient amount levied.

3.32.070 Provision for levying sum sufficient to pay warrants.

3.32.080 Investment authorization.

3.32.010 Establishment.

There is established and the clerk/treasurer of the city of Sultan is directed to set up a local improvement guaranty fund for said city, which fund shall be for the purpose of guaranteeing the payment of local improvement bonds and warrants issued to pay for improvements ordered by said city council pursuant to laws of the state of Washington. (Ord. 192 § 1, 1947)

3.32.020 Disbursements – Warrant issuance.

Available funds thereof shall be used to meet liabilities accruing against same and warrants shall be issued against said fund to draw interest at not to exceed six percent to meet such liabilities, which warrants shall at no time, however, exceed five percent of the outstanding bond obligations guaranteed by said fund. (Ord. 192 § 2, 1947)

3.32.030 Delinquent assessments – Notice to city council – Contents.

When any assessment levied against real estate within any local improvement district established by said city, subsequent to April 7, 1926, is delinquent and subject to foreclosure for the collection of such delinquent assessments, the city clerk/treasurer shall immediately notify the council, in writing, giving the description of such tract of real estate subject to foreclosure, the amount of unpaid assessments, penalties and interest against the same, and the council shall within one year from January 1st of each year direct the necessary foreclosure proceedings for such collection, by proper resolution by it adopted. (Ord. 192 § 3, 1947)

3.32.040 Delinquent assessments – General taxes foreclosure by county – Council to direct payment.

The city clerk/treasurer shall immediately notify the council, in writing, upon receipt of notice from the treasurer of Snohomish County, Washington, respecting general taxes foreclosure or sale by said county of any tract of real estate against which there are unpaid assessments outstanding in any local improvement district of the city, and the council may direct payment from or against said local improvement guaranty fund of the necessary sums to protect said local improvements in the manner by law provided. (Ord. 192 § 4, 1947)

3.32.050 Council’s authority to lease or dispose of property purchased for protection of local improvement district.

The council shall have full authority to lease or sell or otherwise deal with or dispose of any such tract of real estate which it may purchase for the protection of any local improvement district, in such manner and at such price as it may determine to be for the best interests of the city, all expenses of which shall be paid or charged against said guaranty fund, and any net funds realized from any such tracts or real estate, all interest earned by moneys belonging to said guaranty fund and placed at interest, and any surplus remaining in any local improvement district fund, after payment in full of all bonds and warrants issued against same, shall be deposited by the city clerk/treasurer in said guaranty fund. (Ord. 192 § 5, 1947)

3.32.060 Use of moneys – City not obligated to make payments in case of insufficient amount levied.

Moneys placed in said guaranty fund shall be used only for the purposes provided in this chapter, and for the payment of delinquent bonds, interest coupons and warrants issued by the city for the payment of expenses of local improvement districts established by the city subsequent to April 7, 1926, and the city of Sultan, Washington, does not obligate itself, or guarantee the payment of any local improvement bonds, interest coupons or warrants except to the extent that there shall be a sufficient amount levied for or in said local improvement guaranty fund, all as provided by law. (Ord. 192 § 6, 1947)

3.32.070 Provision for levying sum sufficient to pay warrants.

At the time of making its annual budget and tax levy the city council shall provide for the levying of a sum sufficient, with other resources of the fund, to pay warrants issued against the same during the preceding fiscal year. (Ord. 192 § 7, 1947)

3.32.080 Investment authorization.

The city clerk/treasurer is authorized to invest moneys held in said local improvement guaranty fund from time to time in investments authorized by law for such city funds and which investments are subject to liquidation at all times for not less than par. (Ord. 192 § 8, 1947)

Chapter 3.33
LOCAL IMPROVEMENT DISTRICT CONSTRUCTION FUND

Sections:

3.33.010 Fund created.

3.33.020 Purposes – Expenditures.

3.33.030 Accumulated funds.

3.33.010 Fund created.

There is hereby created a fund known as the local improvement district construction fund. (Ord. 669-97)

3.33.020 Purposes – Expenditures.

This fund has been created for the purpose of accumulating funds for the expansion and construction of sewer system improvements through a local improvement district. Expenditures for said projects shall be approved by the city council prior to the commitment of any funds. (Ord. 669-97)

3.33.030 Accumulated funds.

Should this fund be discontinued or closed, any unexpended funds remaining in the fund shall be deposited to the utility reserve fund. (Ord. 669-97)

Chapter 3.34
COMMUNITY IMPROVEMENT FUND

Sections:

3.34.010 Fund created.

3.34.020 Purpose – Expenditures.

3.34.030 Accumulated funds.

3.34.010 Fund created.

There is created a fund to be known as the community improvement fund. (Ord. 558, 1991)

3.34.020 Purpose – Expenditures.

This fund has been created for the purpose of accumulating funds for community improvement projects. Expenditures for said projects shall be approved by the city council prior to the commitment of any funds. (Ord. 558, 1991)

3.34.030 Accumulated funds.

Any unexpended funds remaining in the community improvement fund at the end of any budget year shall be carried over each year into the new budget and may be expended at such time as the council may direct by resolution. (Ord. 558, 1991)

Chapter 3.35
PARK SYSTEM IMPROVEMENT FUND

Sections:

3.35.010 Fund created.

3.35.020 Purpose – Expenditures.

3.35.030 Accumulated funds.

3.35.010 Fund created.

There is hereby created a fund known as the park system improvement fund. (Ord. 733-99)

3.35.020 Purpose – Expenditures.

This fund has been created for the purpose of accumulating funds for the expansion and construction of park system improvements. Expenditures for said projects shall be approved by the city council prior to the commitment of any funds. (Ord. 733-99)

3.35.030 Accumulated funds.

Should this fund be discontinued or closed, any unexpended funds remaining in the fund shall be deposited to the general fund for the maintenance of the park system. (Ord. 733-99)

Chapter 3.36
PETTY CASH FUND

Sections:

3.36.010 Establishment.

3.36.020 Allowable expenditures.

3.36.030 Reimbursement.

3.36.040 Recordkeeping.

3.36.010 Establishment.

There is created a petty cash fund in an amount to be set by resolution by the city council, and will exist as part of the total resources of the city. (Ord. 445 § 4, 1983; Ord. 371 § 1, 1978)

3.36.020 Allowable expenditures.

Payments are to be made from this fund for minimal expenditures in the form of cash and only for expenditures which are ordinary and necessary and allowed by law. (Ord. 371 § 2, 1978)

3.36.030 Reimbursement.

A. All expenditures are to be supported by receipts for such expenditures and reimbursement of said petty cash fund will be by warrants issued against the applicable funds relative to the receipted expenditures in their exact respective amounts.

B. Reimbursement of the petty cash fund will take place when it is convenient for the clerk/treasurer to do so and the reimbursement expenditures will receive the approval of the city council at the time the city council normally gives approval of other warrant expenditures. (Ord. 371 § 3, 1978)

3.36.040 Recordkeeping.

Security and the required recordkeeping shall be the responsibility of the clerk/treasurer. (Ord. 371 § 4, 1978)

Chapter 3.37
POLICE PETTY CASH FUND

Sections:

3.37.010 Fund created.

3.37.020 Allowable expenditures.

3.37.030 Reimbursement.

3.37.040 Recordkeeping.

3.37.010 Fund created.

There is hereby created a police petty cash fund in the amount of $100.00 which will exist as part of the total resources of the city. (Ord. 657-96)

3.37.020 Allowable expenditures.

Payments are to be made from this fund for minimal expenditures in the form of cash and only for expenditures which are ordinary and necessary and allowed by law. (Ord. 657-96)

3.37.030 Reimbursement.

A. All expenditures are to be supported by receipts for such expenditures and reimbursement of said petty cash fund will be by warrants issued against the applicable funds relative to the receipted expenditures in their exact representative amounts.

B. Reimbursement of the petty cash fund will take place when it is convenient for the clerk/treasurer to do so and the reimbursement expenditures will receive the approval of the city council at the time the city council normally gives approval of other warrant expenditures. (Ord. 657-96)

3.37.040 Recordkeeping.

Security and the required recordkeeping shall be the responsibility of the police clerk and shall be subject to audit by the clerk/treasurer. (Ord. 657-96)

Chapter 3.38
DRUG ENFORCEMENT FUND

Sections:

3.38.010 Fund created.

3.38.020 Purpose – Expenditures.

3.38.030 Accumulated funds.

3.38.010 Fund created.

There is created and established a special fund to be known as the “drug enforcement fund,” into which all moneys and proceeds from the sale of property seized during drug investigations and forfeited pursuant to RCW 69.50.505 and all other applicable state and federal laws shall be deposited after amounts are deducted in accordance with state and federal laws. Other sources of moneys shall include all fines, forfeitures and penalties ordered paid by court order into this fund. (Ord. 521, 1989)

3.38.020 Purpose – Expenditures.

This fund has been established for the purpose of accumulating funds for drug enforcement needs, drug awareness educational purposes and the purchase, lease and maintenance of equipment and other items necessary for drug enforcement by the Sultan police department, and shall not be expended for any other purpose. (Ord. 521, 1989)

3.38.030 Accumulated funds.

Any unexpended funds remaining in the drug enforcement fund at the end of any budget year shall not be transferred to the general fund or otherwise lapse; rather, said unexpended funds shall be carried forward from year to year until expended for the purposes set forth in SMC 3.38.020. Should said fund be dissolved at any time, accumulated funds will be transferred to the general fund to be used for police-related expenditures. (Ord. 521, 1989)

Chapter 3.40
UTILITY CUMULATIVE RESERVE FUND

Sections:

Article I. General Provisions

3.40.010 Establishment.

3.40.020 Appropriations.

3.40.030 Allowable expenditures.

3.40.040 Purposes for betterment and not maintenance of utility system – Investment in other funds.

3.40.050 Deposit of proceeds for 1974 timber sale – Expenditures.

3.40.060 Certain transferals of funds prohibited.

Article II. Amendments

3.40.070 Proceeds from watershed timber to reimburse current expense fund.

3.40.080 Proceeds from watershed timber to reimburse garbage collection fund.

Article I. General Provisions

3.40.010 Establishment.

A. There is created and established a fund to be known as the utility cumulative reserve fund.

B. Such fund shall be operated and controlled strictly as a cumulative reserve fund and its income will be expended for the purposes described in this section through SMC 3.40.060 and will be derived from the sources designated in this section through SMC 3.40.060. (Ord. 333 § 1, 1974)

3.40.020 Appropriations.

A. The utility cumulative reserve fund established in this chapter shall receive and have appropriated to it, all of the net proceeds derived from the sale of timber located upon the city’s real property known as the Sultan watershed.

B. “Net proceeds” means that portion of the income derived from the sale of such timber which remains after deducting the cost of removal of said timber through logging and hauling, the cost of maintaining and establishing appropriate notices required for the removal of such timber, the cost of management of said land, the cost of professional consulting services rendered in relation to the timber removal program established by the city of Sultan, and such other costs as may be reasonably deemed to be pertinent to the specific areas of expenditure described above; provided further, that such fund may receive income through appropriations from the city’s utility fund or cumulative reserve water fund, if in the judgment of the city council such appropriations will serve the best interests of the city, and are necessary to provide for the execution of the purposes set forth in SMC 3.40.010 through 3.40.060. (Ord. 333 § 2, 1974)

3.40.030 Allowable expenditures.

A. The utility cumulative reserve fund hereby established shall be utilized strictly for municipal purposes of providing funds to pay the cost in whole or in part for any betterments, improvements or extensions of the city’s utility system which the city council may deem necessary and proper.

B. Such betterments, improvements and extensions shall include, but not be limited to, water purification, storage, source development and improvement, additions and extensions to water pipelines which deliver water from the city’s source to the system within said city, together with drains, dams, sewer pipelines and appurtenances, and such other betterments, improvements and extensions as may be appropriate to the purposes described in SMC 3.40.010 through 3.40.060. (Ord. 333 § 3, 1974)

3.40.040 Purposes for betterment and not maintenance of utility system – Investment in other funds.

It is the declared intention of the city council of the city of Sultan to specially set aside the income derived from the sale of timber from its watershed land to assist in the execution and construction of the purposes of SMC 3.40.010 through 3.40.060, and not to expend such income for general maintenance and operation of the utility systems; provided, that it is also the declared intention of the city council of the city of Sultan, that appropriations deposited to the utility cumulative reserve fund established in SMC 3.40.010 through 3.40.060 may be invested from time to time in other funds of the city, or in standard investments approved by the statutes of the state of Washington whenever the cash possessed by such fund is not immediately required to fulfill its specific and strictly municipal purposes. (Ord. 333 § 4, 1974)

3.40.050 Deposit of proceeds for 1974 timber sale – Expenditures.

A. All funds derived from the sale of timber by the city during the year 1974 shall be deposited to the utility cumulative reserve fund in accordance with the terms of SMC 3.40.010 through 3.40.060 as items of cash for which provision could not be made in the 1974 budget of the city of Sultan.

B. All such income shall be expended only to assist in the development and execution of the betterments, improvements and extensions of the city utility system which either are now being planned or may hereafter be approved by the city council of the city of Sultan; provided further, that such appropriations may be deposited directly to such fund by the city clerk/treasurer and need not be deposited first to the city’s utility fund and thereafter transferred to the utility cumulative reserve fund in accordance with the terms of SMC 3.40.010 through 3.40.060. (Ord. 333 § 5, 1974)

3.40.060 Certain transferals of funds prohibited.

No funds shall be transferred to the utility cumulative reserve fund from the utility operation fund of the city, or from the cumulative reserve water fund until proper appropriations have been made as a part of the budget for the operation of the city of Sultan throughout the year 1975. (Ord. 333 § 6, 1974)

Article II. Amendments

3.40.070 Proceeds from watershed timber to reimburse current expense fund.

A. Notwithstanding the declared intention of the city council of the city of Sultan that the net proceeds from the sale of timber shall be paid into the utility cumulative reserve fund; SMC 3.40.010 through 3.40.060 are amended to the extent that the net proceeds from the sale of timber off of the watershed land shall hereafter be paid into the current expense fund until such time as the current expense fund has accumulated enough of these proceeds to pay back the principal and interest on a municipal loan made from the utility cumulative reserve fund to the current expense fund made for the purpose of purchasing a parcel of real property adjacent to the present City Hall, pursuant to Resolution No. 78-3.

B. After the current expense fund has paid back this loan, pursuant to Resolution No. 78-3, the proceeds from the sale of timber off of the watershed land shall again be paid into the utility cumulative reserve fund, as was done prior to the addition of this section. (Ord. 365 § 2, 1978; Ord. 333 § 8, 1974)

3.40.080 Proceeds from watershed timber to reimburse garbage collection fund.

A. Notwithstanding the declared intention of the city council of the city of Sultan that the net proceeds from the sale of timber shall be paid into the utility cumulative reserve fund; SMC 3.40.010 through 3.40.060 are amended to the extent that the net proceeds from the sale of timber off of the watershed land shall hereafter be paid into the garbage collection fund until such time as the garbage collection fund has accumulated enough of these proceeds to pay back the principal and interest on a municipal loan made from the utility cumulative reserve fund to the garbage collection fund made for the purpose of purchasing a new garbage truck, pursuant to Resolution No. 78-4.

B. After the garbage collection fund has paid back this loan pursuant to Resolution No. 78-4, the proceeds from the sale of timber off of the watershed land shall again be paid into the utility cumulative reserve fund, as was done prior to the addition of this section. (Ord. 373 § 1, 1978; Ord. 333 § 9, 1974)

Chapter 3.42
BASEBALL FIELD PROJECT FUND

Sections:

3.42.010 Fund created.

3.42.020 Purpose – Expenditures.

3.42.030 Accumulated funds.

3.42.040 Severability.

3.42.010 Fund created.

There is hereby created a fund known as the baseball field project fund. (Ord. 613, 1994)

3.42.020 Purpose – Expenditures.

This fund has been created for the purpose of accumulating funds to construct a baseball field for the community.

Expenditures for said project shall be approved by the city council prior to the commitment of any funds. (Ord. 613, 1994)

3.42.030 Accumulated funds.

Any unexpended funds remaining in the fund at the end of the project shall be deposited to the general fund for maintenance of the field. (Ord. 613, 1994)

3.42.040 Severability.

The provisions of this chapter are declared to be separate and severable. The invalidity of any clause, sentence, paragraph, subdivision, section or portion of this chapter, or the invalidity of the application thereof to any person or circumstances shall not affect the validity of the remainder of this chapter, or the validity of its application to other persons or circumstances. (Ord. 613, 1994)

Chapter 3.44
UTILITY FUND

Sections:

3.44.010 Establishment.

3.44.010 Establishment.

There is established a fund which shall be known as the utility fund and all utility fees and charges shall be deposited therein by the city clerk/treasurer and from which all expenses the administration, maintenance and operation of the city utility department shall be paid. (Ord. 235 § 6, 1957)

Chapter 3.45
SEWER SYSTEM IMPROVEMENT FUND

Sections:

3.45.010 Fund created.

3.45.020 Purpose – Expenditures.

3.45.030 Accumulated funds.

3.45.040 Repealed.

3.45.010 Fund created.

There is hereby created a fund known as the sewer system improvement fund. (Ord. 832-03; Ord. 620, 1994)

3.45.020 Purpose – Expenditures.

This fund has been created for the purpose of accumulating funds for the expansion and construction of sewer system improvements. Expenditures for said projects shall be approved by the city council prior to the commitment of any funds. (Ord. 832-03; Ord. 620, 1994)

3.45.030 Accumulated funds.

Should this fund be discontinued or closed, any unexpended funds remaining in the fund shall be deposited to the sewer utility fund for maintenance of the sewer system. (Ord. 832-03; Ord. 620, 1994)

3.45.040 Severability.

Repealed by Ord. 832-03. (Ord. 620, 1994)

Chapter 3.46
DRIVING WHILE INTOXICATED GRANT FUND

Sections:

3.46.010 Purpose.

3.46.020 Establishment.

3.46.030 Allowable expenditures.

3.46.040 Recordkeeping.

3.46.010 Purpose.

This fund is created to implement the grant that has been awarded to the city for prosecution of offenders cited for driving while under the influence of intoxicating liquor, or drugs (hereafter to be referred to as D.W.I.). (Ord. 452, 1984)

3.46.020 Establishment.

A. There is created and established a fund to be known as the D.W.I. grant fund.

B. Such fund shall be applied for the purpose of prosecuting D.W.I. cases between September 15, 1984 and June 30, 1985. (Ord. 452, 1984)

3.46.030 Allowable expenditures.

A. Payments are to be made from this fund for expenditures directly related to the prosecution of D.W.I. cases which shall include, but are not limited to, clerical fees for preparation of cases, prosecutor costs, jury fees, and other fees not specifically disallowed by the conditions of the grant.

B. All expenditures are to be supported by appropriate documentation. (Ord. 452, 1984)

3.46.040 Recordkeeping.

Security and the required recordkeeping shall be the responsibility of the clerk/treasurer. (Ord. 452, 1984)

Chapter 3.47
WATER SYSTEM IMPROVEMENT FUND

Sections:

3.47.010 Fund created.

3.47.020 Purpose – Expenditures.

3.47.030 Accumulated funds.

3.47.010 Fund created.

There is hereby created a fund known as the water system improvement construction fund. (Ord. 656-96)

3.47.020 Purpose – Expenditures.

This fund has been created for the purpose of accumulating funds for the expansion and construction of water system improvements. Expenditures for said projects shall be approved by the city council prior to the commitment of any funds. (Ord. 656-96)

3.47.030 Accumulated funds.

Should this fund be discontinued or closed, any unexpended funds remaining in the fund shall be deposited to the water utility fund for the maintenance of the water system. (Ord. 656-96)

Chapter 3.48
SALES AND USE TAX

Sections:

Article I. Sales and Use Tax

3.48.001 Imposition.

3.48.002 Rate.

3.48.003 Administration and collection.

3.48.004 Inspection of records.

3.48.005 Contract with Department of Revenue.

3.48.006 Failure to collect or pay.

3.48.007 Effective date.

Article II. Additional Sales and Use Tax

3.48.010 Imposition.

3.48.020 Rate.

3.48.030 Subject to special initiative.

3.48.040 Department of Revenue designated as agent.

3.48.050 Administration and collection of tax.

3.48.060 Effective date.

Article III. General Fund – Contingency Fund – Reserve General Fund

3.48.070 General fund.

3.48.080 Contingency fund.

3.48.090 Reserve general fund.

Article I. Sales and Use Tax

3.48.001 Imposition.

There is hereby 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 of Sultan. 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. 314 § 1, 1970)

3.48.002 Rate.

The rate of the tax imposed by SMC 3.48.001 shall be 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 Snohomish County, the rate of tax imposed by this article shall be four hundred twenty-five and one thousandths of one percent. (Ord. 314 § 2, 1970)

3.48.003 Administration and 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. 314 § 3, 1970)

3.48.004 Inspection of records.

The city hereby 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. 314 § 4, 1970)

3.48.005 Contract with Department of Revenue.

The mayor is hereby authorized to enter into the contract with the Department of Revenue for administration of the tax. (Ord. 314 § 5, 1970)

3.48.006 Failure to collect or pay.

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 such seller or buyer may be punished by a fine of $250.00 or 90 days in jail, or both. (Ord. 314 § 6, 1970)

3.48.007 Effective date.

This article shall take effect on January 1, 1971, in order that the mayor may take the necessary steps to assure that collection of taxes under this chapter shall commence with the first day of the first quarter of 1971. (Ord. 314 § 7, 1970)

Article II. Additional Sales and Use Tax

3.48.010 Imposition.

Pursuant to Section 17 of Engrossed Senate Bill No. 4972, amending RCW 82.14.030, a sales and use tax is fixed and imposed by the city. Said tax shall be collected from those persons who are taxable by the state of Washington pursuant to Chapters 82.08 and 82.12 RCW upon the occurrence of any taxable event within the city. (Ord. 429 § 1, 1982)

3.48.020 Rate.

The rate of such tax imposed shall be as follows:

A. 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 Snohomish County under subsection 17(1) of Engrossed Senate Bill No. 4972, amending RCW 82.14.030, the city tax shall be four hundred twenty-five one-thousandths of one percent; and, in addition

B. 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, that during such period as there is in effect a sales or use tax imposed by Snohomish County under subsection 17(2) of Engrossed Senate Bill No. 4972, adopting RCW 92.14.030(2), the county shall receive 15 percent of the city tax so imposed, or 15 percent of the rate of tax imposed by the county, whichever is less. (Ord. 429 § 2, 1982)

3.48.030 Subject to special initiative.

This article shall be subject to a special initiative proposing that the tax imposed by this chapter be changed or repealed. 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 general election. If a special initiative petition is filed with the city council, the operation of this chapter shall not be suspended pending the city council or voter approval of the special initiative and the tax imposed herein shall be collected until each special initiative is approved by the city council or the voters. The procedures for initiative upon petition contained in RCW 35A.11.100 shall apply to any such special initiative petition. (Ord. 433 § 1, 1983; Ord. 429 § 3, 1982)

3.48.040 Department of Revenue designated as agent.

The Washington State Department of Revenue is designated as agent for the city for the purposes of collection and administration of the tax levied in this article. (Ord. 429 § 4, 1982)

3.48.050 Administration and collection of tax.

All definitions, rules, forms, recording procedures and regulations adopted by the Department of Revenue for the administration of Chapters 82.08, 82.12 and 82.32 RCW are adopted for the purposes of administration and collection of the tax levied in this article. The administrative provisions contained in said chapters shall apply with respect to the administration and collection of the tax by the Department of Revenue. (Ord. 429 § 5, 1982)

3.48.060 Effective date.

This article is necessary for the immediate preservation of the public peace, health and safety, the support of the city government and its existing public institutions, and shall take effect immediately, except SMC 3.48.020(B) shall take effect July 1, 1982, unless earlier rejected. (Ord. 429 § 6, 1982)

Article III. General Fund – Contingency Fund – Reserve General Fund

3.48.070 General fund.

There is hereby established the general fund of the city. Except where otherwise designated, or otherwise required by the provisions of law, all funds of the city shall be deposited into the general fund of the city. (Ord. 940-06 § 1)

3.48.080 Contingency fund.

There is hereby established in the general fund a sub-fund entitled the contingency fund. For audit purposes, the fund shall be numbered Fund 100. Until a total amount equal to the greater of 10 percent of annual general fund revenues or $200,000 is accumulated in the fund, monies shall be deposited to the fund on a periodic basis from the city’s retail sales tax revenues when annual proceeds from that tax exceed $250,000. The previous year’s balance in the fund shall become the beginning fund balance in the next annual budget for this sub-fund. Subject to any hearing required by law, amendment of the city’s budget as required by law, and compliance with RCW 35A.44.146, monies in the contingency fund shall be used by the city to meet unanticipated revenue short falls or unanticipated expenditures during the city’s fiscal year. At no time shall the fund balance exceed the legal limit set forth in RCW 35A.33.145. (Ord. 940-06 § 1)

3.48.090 Reserve general fund.

There is hereby established in the general fund a sub-fund entitled the reserve general fund. For audit purposes, the fund shall be numbered Fund 150. After annual revenues from the city’s retail sales tax exceed $250,000, and after the city’s contingency fund has been fully funded, remaining excess revenues from the city’s retail sales tax shall be accumulated in this sub-fund until an amount equal to the greater of 25 percent of annual general fund revenues or $500,000 is in the fund. The previous year’s balance in the fund shall become the beginning fund balance in the next annual budget for this sub-fund. Subject to any hearing required by law, and amendment of the city’s budget as required by law, and any required compliance with RCW 35A.33.145, monies in the reserve general fund shall be used to meet costs associated with emergent and cataclysmic events after a declaration of emergency promulgated by the mayor. The sum of the monies in this fund and in the contingency fund shall not exceed the legal limit set in RCW 35A.33.145. (Ord. 940-06 § 1)

Chapter 3.50
REAL ESTATE EXCISE TAX

Sections:

3.50.010 Imposition – Collection.

3.50.020 Lien.

3.50.030 Seller’s obligation.

3.50.040 Collection.

3.50.050 Disbursal of tax proceeds.

3.50.060 Deposit in growth management fund.

3.50.010 Imposition – Collection.

A. There is levied and imposed an excise tax on each sale of real property within the corporate limits of the city at a rate of one-quarter of one percent of the selling price of the real property.

B. The excise tax shall be collected from those persons who are taxable by the state of Washington under Chapter 82.45 RCW upon the occurrence of any taxable event within the corporate limits of the city.

C. The excise tax shall comply with all applicable rules, regulations, laws and court decisions regarding real estate excise taxes as imposed by the state of Washington under Chapter 82.45 RCW. (Ord. 474, 1985)

3.50.020 Lien.

The real estate excise tax and any interest or penalties thereon shall constitute a specific lien upon each piece of real property sold from the time of sale until the tax is paid, which lien may be enforced in the manner prescribed for the foreclosure of mortgages. (Ord. 474, 1985)

3.50.030 Seller’s obligation.

The excise tax shall be the obligation of the seller of the real property and may be enforced through an action of debt against the seller or 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. 474, 1985)

3.50.040 Collection.

The excise tax shall be paid to and collected by the Snohomish County treasurer. The treasurer shall act as agent for the city. The 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 treasurer for the payment of the tax shall be evidence of the lien imposed by SMC 3.50.020 and may be recorded in the manner prescribed for recording satisfaction of mortgages. No instrument of sale or conveyance evidencing a sale subject to the tax may be accepted by the 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 a suitable notation of this fact is made on the instrument by the treasurer. (Ord. 474, 1985)

3.50.050 Disbursal of tax proceeds.

A. The Snohomish County treasurer shall deposit one percent of the proceeds of the excise tax into the Snohomish County current expense fund to defray the costs of collection.

B. The remaining proceeds of the excise tax shall be remitted to the city on a monthly basis. (Ord. 474, 1985)

3.50.060 Deposit in growth management fund.

All proceeds of the excise tax which are disbursed to the city shall be deposited into the fund. Moneys in said fund shall be accumulated from year to year, and may be expended at such times as the city council shall by ordinance direct for purposes of making capital improvements for the public benefit, including but not limited to those capital improvements listed in RCW 35.43.040. (Ord. 474, 1985)

Chapter 3.51
ADDITIONAL REAL ESTATE EXCISE TAX

Sections:

3.51.010 Imposition of the real estate excise tax.

3.51.020 Taxable events.

3.51.030 Consistency with the state tax.

3.51.040 Distribution of tax proceeds.

3.51.050 Seller’s obligation.

3.51.060 Lien provisions.

3.51.070 Notation of payment.

3.51.080 Date payable.

3.51.090 Excessive and improper payments.

3.51.010 Imposition of the real estate excise tax.

Under the authority of RCW 82.46.035(2), there is imposed an additional excise tax of one-quarter of one percent of the selling price of each sale of real property within the corporate limits of the city of Sultan. (Ord. 921-06 § 1; Ord. 552, 1990)

3.51.020 Taxable events.

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 this city. (Ord. 552, 1990)

3.51.030 Consistency with the state tax.

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 these chapters, to the extent that they are not inconsistent with this chapter, shall apply as though fully set forth in this chapter. (Ord. 552, 1990)

3.51.040 Distribution of tax proceeds.

A. If required by law or otherwise, the county treasurer shall place one percent of the proceeds of the taxes imposed herein in the county current expense fund to defray costs of collection.

B. The remaining proceeds from city taxes imposed herein shall be distributed to the city monthly and shall be placed by the finance director in a separate capital improvement account where such funds shall be used solely for financing capital projects specified in a capital facilities plan element of a comprehensive plan.

C. This section shall not limit the existing authority of this city to impose special assessments on property benefited thereby in the manner prescribed by law. (Ord. 921-06 § 2; Ord. 552, 1990)

3.51.050 Seller’s obligation.

Taxes imposed herein 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. 552, 1990)

3.51.060 Lien provisions.

The taxes imposed herein and any interest or penalties thereon are the specific lien upon each piece of real property sold from the 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 manner of enforcement is not an election not to pursue another type of enforcement. (Ord. 552, 1990)

3.51.070 Notation of payment.

The taxes imposed herein shall be paid to and collected by the treasurer of Snohomish County and the county treasurer shall act as agent for the city for the purpose of collecting this tax. The county treasurer shall cause a stamp evidencing the 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 county treasurer for the payment of the tax imposed herein shall be evidence of the satisfaction of the lien imposed in SMC 3.51.060 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 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 a suitable notation of this fact is made on the instrument by the county treasurer. (Ord. 552, 1990)

3.51.080 Date payable.

The tax imposed hereunder 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. 552, 1990)

3.51.090 Excessive and improper payments.

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 the sale or other transfer declared as exempt, such excess amount or improper payment shall be refunded by the 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 shall be withheld from the next monthly distribution to the city. (Ord. 552, 1990)

Chapter 3.52
UTILITY TAX

Sections:

3.52.010 Definitions.

3.52.020 Imposition.

3.52.030 Penalty for late payment.

3.52.040 Overpayment.

3.52.045 Allocation of income – Cellular telephone service.

3.52.050 Effective date.

3.52.010 Definitions.

In construing the provisions of this chapter, except when otherwise plainly declared or clearly apparent from the context, the following definitions shall be applied:

A. “Gross revenue” means the value proceeding or accruing from the sale of tangible property or service, and receipts by reason of the investment of capital in the business engaged in, including rentals, royalties, fees or other emoluments, however designated (excluding receipts or proceeds from the use or sale of real property or any interest therein, and proceeds from the sale of notes, bonds, mortgages or other evidences of indebtedness or stock and the like) and without any deduction on account of the cost of the property sold, the cost of materials used, labor costs, interest or discount paid, or any expense whatsoever, and without any deduction on account of losses.

B. “Person” or “persons” means individuals, firms, partnerships, corporations and other associations of natural persons whether acting by themselves or by servants, agents or employees.

C. “Telephone business” means the providing by any person of access to a telephone network, telephone network switching service, toll service, or coin telephone services, or the providing of telephonic, video, data, or similar communication or transmission for hire, via a telephone network, toll line or channel, cable, microwave, or similar communication or transmission system. It includes cooperative or farmer line telephone companies or associations operating an exchange. It also includes the provision of transmission to and from the site of an Internet provider via a telephone network, toll line or channel, cable, microwave, or similar communication or transmission system. Telephone business does not include the providing of competitive telephone service, the providing of cable television service, the providing of broadcast services by radio or television stations, nor the provision of Internet service as defined in RCW 82.04.297, including the reception of dial-in connection, provided at the site of the internet service provider.

D. “Competitive telephone service” means the providing by any person of telecommunications equipment or apparatus, or service related to that equipment or apparatus such as repair or maintenance service, if the equipment or apparatus is of a type which can be provided by persons who are not subject to regulation as telephone companies under RCW Title 80 and for which a separate charge is made.

E. “Cellular telephone service” means a two-way voice and data telephone/telecommunications system based in whole or substantially in part on wireless radio communications and which is not subject to regulation by the Washington Utilities and Transportation Commission (WUTC). This includes cellular mobile service. The definition of cellular mobile service includes other wireless radio communications services such as specialized mobile radio (SMR), personal communications services (PCS), and any other evolving wireless radio communications technology that accomplishes a purpose similar to cellular mobile service. (Ord. 908-06 §§ 1, 2; Ord. 754-00)

3.52.020 Imposition.

A. The following taxes shall be levied:

1. Telephone. There shall be levied upon every person, firm or corporation engaged in or carrying on a telephone business, a tax equal to six percent of the total gross revenue derived from such business in the city of Sultan, excepting amounts derived from transactions in interstate or foreign commerce.

2. Electricity. There shall be levied upon every person, firm or corporation engaged in or carrying on the business of selling or furnishing electric light and/or power within the city of Sultan, a tax equal to six percent of the total gross revenue derived from such business in the city of Sultan, exclusive of revenue derived from the sale of electricity for the purposes of resale.

3. Natural Gas. There shall be levied upon every person, firm or corporation engaged in or carrying on the business of selling or furnishing natural gas within the city of Sultan, a tax equal to six percent of the gross revenue derived from sales and service of such gases to ultimate users served by the city of Sultan.

4. Sewer. There shall be levied upon the city of Sultan a tax equal to six percent of the gross revenue derived from each customer’s monthly service charge for sewer service within or without the city but provided by the city of Sultan.

5. Water. There shall be levied upon the city of Sultan a tax equal to six percent of the gross revenue derived from each customer’s monthly service charge for water service within or without the city but provided by the city of Sultan.

6. Garbage. There shall be levied upon the city of Sultan a tax equal to six percent of the gross revenue derived from each customer’s monthly service charge for garbage collection service within or without the city but provided by the city of Sultan.

7. Cable Television Service. There shall be levied upon every person, firm or corporation engaged in or carrying on cable television service a tax equal to six percent of the total gross revenue derived from such business in the city of Sultan, excepting amounts derived from transactions in interstate or foreign commerce, if any.

B. The tax shall be due and payable in monthly installments and remittance shall be made on or before the last working day of the following month. (Ord. 927-06 § 1; Ord. 908-06 § 3; Ord. 754-00)

3.52.030 Penalty for late payment.

A. If payment of any fee or tax due under this chapter is not received by the clerk/treasurer on or before the day it becomes due, there shall be added a penalty in interest as follows:

1. One to 40 days’ delinquency, 10 percent with a minimum penalty of $5.00;

2. Forty-one to 70 days’ delinquency, 15 percent with a minimum penalty of $10.00;

3. Seventy-one or more days’ delinquency, 20 percent with a minimum penalty of $15.00.

B. Any tax due under this chapter and unpaid, and all penalties thereon, shall constitute a debt to the city and may be collected by court proceedings, which remedy shall be in addition to all other remedies. (Ord. 754-00)

3.52.040 Overpayment.

Any money paid to the city through error, or otherwise not in payment of the tax imposed by this chapter, or in excess of such tax shall, upon discovery, be credited against any tax due or to become due from such taxpayer hereunder. If such taxpayer has ceased doing business in the city, any such overpayment shall be refunded to the taxpayer. (Ord. 754-00)

3.52.045 Allocation of income – Cellular telephone service.

A. Service Address. Payments by a customer for the telephone service from telephones without a fixed location shall be allocated among taxing jurisdictions to the location of the customer’s principal service address during the period for which the tax applies.

B. Presumption. There is a presumption that the service address a customer supplies to the taxpayer is current and accurate, unless the taxpayer has actual knowledge to the contrary.

C. Roaming Phones. When the service is provided while a subscriber is roaming outside the subscriber’s normal cellular network area, the gross income shall be assigned consistent with the taxpayer’s accounting system to the location of the originating cell site of the call, or to the location of the main cellular switching office that switched the call.

D. Dispute Resolution. If there is a dispute between or among the city and one or more other cities as to the service address of a customer who is receiving cellular telephone services and the dispute is not resolved by negotiation among the parties, then the dispute shall be resolved by the city and the other city or cities by submitting the issue for settlement to the Association of Washington Cities (AWC). Once the taxes on the disputed revenues have been paid to one of the contesting cities, the cellular telephone service company shall have no further liability with respect to additional taxes on the disputed revenues so long as it changes its billing records for future revenues to comport with the settlement facilitated by AWC. (Ord. 908-06 § 4)

3.52.050 Effective date.

All taxes provided for in this chapter shall be effective and applicable on the effective date of the ordinance codified in this chapter. The effective date shall be March 1, 2001. (Ord. 754-00)

Chapter 3.53
WATER UTILITY DEBT SERVICE FUND

Sections:

3.53.010 Fund created.

3.53.020 Purpose – Expenditures.

3.53.030 Accumulated funds.

3.53.010 Fund created.

There is hereby created a fund known as the water utility debt service fund. (Ord. 773-01)

3.53.020 Purpose – Expenditures.

This fund has been created for the purpose of payment of debt service incurred for improvements to the water utility system. Expenditures for said debt will be in accordance with loan agreements. (Ord. 773-01)

3.53.030 Accumulated funds.

Should this fund be discontinued or closed, any unexpended funds remaining in the fund shall be deposited to the water utility fund for the maintenance of the water system. (Ord. 773-01)

Chapter 3.54
SEWER UTILITY DEBT SERVICE FUND

Sections:

3.54.010 Fund created.

3.54.020 Purpose – Expenditures.

3.54.030 Accumulated funds.

3.54.010 Fund created.

There is hereby created a fund known as the sewer utility debt service fund. (Ord. 774-01)

3.54.020 Purpose – Expenditures.

This fund has been created for the purpose of payment of debt service incurred for improvements to the sewer utility system. Expenditures for said debt will be in accordance with loan agreements. (Ord. 774-01)

3.54.030 Accumulated funds.

Should this fund be discontinued or closed, any unexpended funds remaining in the fund shall be deposited to the sewer utility fund for the maintenance of the sewer system. (Ord. 774-01)

Chapter 3.56
LOCAL IMPROVEMENTS – FORECLOSURE OF ASSESSMENTS

Sections:

3.56.010 Adoption.

3.56.020 Authority and conditions precedent to foreclosure.

3.56.030 Acceleration of installments – Foreclosure – Attorney’s fees.

3.56.040 Severability.

3.56.010 Adoption.

The following state statutes and amendments thereto are hereby adopted by reference as if set forth in full:

RCW

35.50.005 Filing of title, diagram, expense – Posting proposed roll.

35.50.010 Assessment lien – Attachment – Priority.

35.50.020 Assessment lien – Validity.

35.50.050 Limitation of foreclosure action.

35.50.220 Procedure – Commencement of action.

35.50.225 Procedure – Form of summons.

35.50.230 Procedure – Parties and property included.

35.50.240 Procedure – Pleadings and evidence.

35.50.250 Procedure – Summons and service.

35.50.260 Procedure – Trial and judgment – Notice of sale.

35.50.270 Procedure – Sale – Right of redemption.

(Ord. 914-06 § 2)

3.56.020 Authority and conditions precedent to 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, the city shall proceed with the foreclosure of the delinquent assessment or delinquent installments thereof by proceedings brought in the Snohomish County superior court.

The proceedings shall be commenced on or before June 1st of that year, but not before the city treasurer has notified by certified mail the persons whose names appear on the current assessment roll as owners of the property charged with the assessments or installments which are delinquent, at the address last known to the treasurer, a notice 30 days before the commencement of the proceedings. If the person whose name appears on the assessment rolls of the county assessor as owner of the property, or whose name appears on the tax rolls of the county treasurer as taxpayer of the property, or the address shown for the owner, differs from that appearing on the city or town assessment roll, then the city treasurer shall also mail a copy of the notice to that person or that address.

The notice shall state the amount due, including foreclosure costs, upon each separate lot, tract, or parcel of land and the date after which the proceedings will be commenced. The city treasurer shall file with the clerk of the superior court at the time of commencement of the foreclosure proceeding the affidavit of the person who mailed the notices. This affidavit shall be conclusive proof of compliance with the requirements of this section. (Ord. 914-06 § 2)

3.56.030 Acceleration of installments – Foreclosure – Attorney’s fees.

When the local improvement assessment is payable in installments, the enforcement of the lien of any installment shall not prevent the enforcement of the lien of any subsequent installment.

In any action brought for the foreclosure of a delinquent assessment or installment, future installments not otherwise due and payable shall thereupon be accelerated, and the entire balance of the assessment with interest, penalty, administrative costs and court costs shall become due and payable, and the collection thereof shall be enforced by foreclosure as set forth in this chapter; provided, however, that in the case of such foreclosure, there shall be added to the cost and expense such reasonable attorney’s fees as the court may adjudge to be equitable, and the amount thereof apportioned to each delinquent assessment or installment on the assessment roll; provided, that the payment of all delinquent installments together with interest, penalty, administrative costs, court costs and attorney’s fees at any time before entry of judgment in foreclosure shall extend the time of payment on the remainder of the assessments as if there had been no delinquency or foreclosure. Where foreclosure of two installments of the same assessment on any lot, tract, or parcel is sought, the city treasurer shall cause such lot, tract, or parcel to be dismissed from the action, if the installment first delinquent, together with interest, penalty, administrative costs and charges, court costs and attorney’s fees, is paid at any time before sale. (Ord. 914-06 § 2)

3.56.040 Severability.

If any provision of this chapter or its application to any person or circumstance is held invalid, the remainder of the chapter or the application of the provision to other persons or circumstances is not affected. (Ord. 914-06 § 2)

Chapter 3.60
SALE AND DISPOSAL OF PERSONAL PROPERTY

Sections:

3.60.010 Sale of unneeded property owned by the city.

3.60.020 Sale of personal property of $300.00 in value or less to another governmental entity.

3.60.030 Sale of personal property over $300.00 in value.

3.60.040 Bid deposit for the sale of personal property over $300.00 in value.

3.60.050 Bid opening in the sale of personal property over $300.00 in value.

3.60.060 Award or rejection of bids in the sale of personal property over $300.00 in value.

3.60.065 When bids rejected or no bids received.

3.60.010 Sale of unneeded property owned by the city.

Whenever it appears to the city council that properties are no longer of public use to the city and the sale thereof would be in the best interests of the city, the city council may authorize the sale of property owned by the city upon receipt of an estimate value for each property from the department head, which shall be provided to the council within 10 working days of their determination. The clerk/treasurer shall provide in writing to the city council, at the council’s next regular meeting after a sale, the purchase price, purchaser’s name and address, and the date of sale. (Ord. 571, 1991; Ord. 454 § 1, 1984)

3.60.020 Sale of personal property of $300.00 in value or less to another governmental entity.

Approval of the council is given for the sale or disposition of any personal property:

A. With an estimated value of $300.00 or less; or

B. To another governmental entity to be used by the entity; when such property has been authorized for disposition by the city council; such sale or disposition to be made by the clerk/treasurer in accordance with informal procedures and in the best interest of the city. (Ord. 571, 1991; Ord. 454 § 1, 1984)

3.60.030 Sale of personal property over $300.00 in value.

The clerk/treasurer, upon receipt of written instruction from the city council to sell personal property owned by the city valued at more than $300.00, shall call for sealed bids and shall contain a description of the property to be sold, the location thereof, the name and address of the person with whom the bid is to be filed, the last date for filing bids, and other pertinent information. Such call shall be published at least once in a newspaper of general circulation in the city not less than five days before the last date for filing of bids. (Ord. 571, 1991; Ord. 454 § 1, 1984)

3.60.040 Bid deposit for the sale of personal property over $300.00 in value.

Each bid shall be accompanied by a deposit in the form of a certified check in an amount equal to not less than 20 percent of the amount of the bid. All such deposits so made shall be returned to the unsuccessful bidders depositing the same after award of contract has been made. The deposit of the successful bidder shall be applied upon the price, or upon failure of such bidder to consummate the purchase, such deposit shall be forfeited as liquidated damages and such deposit so forfeited shall be credited to the appropriate account. (Ord. 454 § 1, 1984)

3.60.050 Bid opening in the sale of personal property over $300.00 in value.

Sealed bids shall be opened in public by the city clerk/treasurer or an authorized agent at the time and place specified in the call for bids. The city clerk/treasurer shall make a tabulation of all bids received and forward the bids to the city council. (Ord. 454 § 1, 1984)

3.60.060 Award or rejection of bids in the sale of personal property over $300.00 in value.

The city clerk/treasurer shall present all bids, together with recommendations to the city council at a regularly scheduled meeting for approval or rejection by the council. (Ord. 454 § 1, 1984)

3.60.065 When bids rejected or no bids received.

In the event no bids are received or all bids received are rejected by the city council, then the council may either ask for new sealed bids or direct the sale or disposition of such surplus property under the procedures adopted pursuant to SMC 3.60.020. (Ord. 454 § 1, 1984)

Chapter 3.62
SALE AND DISPOSAL OF
REAL PROPERTY

Sections:

3.62.010 Declaration of policy with respect to disposition of city-owned property.

3.62.020 Initiation of surplus property to sale or lease.

3.62.030 Circulation of surplus request.

3.62.040 Declaration of surplus property.

3.62.050 Sale of real property below market value.

3.62.060 Exchange of city-owned property.

3.62.070 Special requirements to sale.

3.62.080 Sale and lease requirements.

3.62.090 City council authority to waive any provision within policy.

3.62.010 Declaration of policy with respect to disposition of city-owned property.

The Sultan city council declares that it is not in the public interest for property owned by the city to remain economically nonproductive if it can be leased or sold for reasonable value and is not needed for some present or future municipal use. It is therefore declared to be the policy to reasonably dispose of real property that the city holds a fee interest to, by sale or lease where such property is declared to be surplus to its current or future needs and where such disposition would be expected to provide the city a reasonable return from the transaction. (Ord. 496, 1987)

3.62.020 Initiation of surplus property to sale or lease.

A. Sale. Surplus action may be initiated by the city of Sultan, municipal corporations, governmental agencies, private corporations or individuals. If action is initiated by other than the city of Sultan, a cash deposit in an amount so determined by the council shall be posted to cover all city costs of surplus property action. If successful bid exceeds appraised value, and after title to property has transferred, the applicant may request recovery of the deposit, except the city shall retain 50 percent of the actual cost of the surplus property transaction, including but not limited to appraisal, title insurance, recording costs, real estate commission and escrow fees, and except that no recovery shall exceed the difference between appraised value and successful bid amount. If there are no successful bids, the entire cash deposit shall be retained by the city of Sultan.

B. Lease. Surplus action may be initiated by the city of Sultan, other municipal corporations, governmental agencies, private corporations, private businesses or individuals. If action is initiated by other than the city of Sultan, a cash deposit in an amount so determined by the council shall be posted to cover all city costs of surplus property action. If the property, as a result of this action, is declared surplus, and there is an acceptable lease proposal, the applicant may request recovery of the deposit, except the city shall retain 50 percent of the actual cost of the surplus property transaction, including but not limited to appraisal, title insurance, recording costs, real estate conversions and escrow fees, except if there are no successful lease proposals, the entire cash deposit shall be retained by the city of Sultan. (Ord. 496, 1987)

3.62.030 Circulation of surplus request.

Upon the initiation of surplusing city-owned property, the council will notify all city departments and/or governmental agencies, to determine their interests or concerns about the surplusing of city property. (Ord. 496, 1987)

3.62.040 Declaration of surplus property.

A. The city council shall make its declaration of whether the property is or is not surplus to the city of Sultan, after receiving a report from the building/planning committee, which will include the following information:

1. A description of the parcel(s) size and its general location;

2. A description of the circumstances under which the parcel was obtained and to which fund the proceeds from its sale would be credited;

3. A description of what municipal use such property has been put to in the past, if any, and what use, if any, it might be held for;

4. A statement as to whether the parcel is only usable by abutting owners or of general marketability;

5. Response for other city departments and/or governmental agencies;

6. An estimate of its current market value and a recommendation as to whether any special covenants or restrictions should be imposed in conjunction with its sale;

7. Whether further appraisal before sale or exchange is necessary and the type of appraisal required (opinion, short form or full narrative);

8. Whether special consideration ought to be given to some other public agency that has a use for the parcel, if applicable;

9. An administration recommendation as to whether such parcel should be retained or disposed of;

10. Whether the parcel should be sold at auction, or by sealed bid;

11. Proposed property exchange.

B. Following council’s review of such report, including review of any such additional information as the council may request, the council shall determine if the parcel described shall be declared surplus and disposed of by sale or lease pursuant to the procedures described in this chapter. Upon making such declaration of surplus, the council shall also make the following determinations:

1. Whether real property should be leased or sold;

2. Whether special consideration should be given to preferential purchasers (other municipal corporations or political subdivisions);

3. Whether special covenants, easements or restrictions should be imposed as a condition of the sale or lease;

4. Whether the parcel should be sold at auction or by sealed bid.

C. The city council shall then authorize the mayor to undertake disposal of the parcel in accordance with the city council directives. (Ord. 496, 1987)

3.62.050 Sale of real property below market value.

As declared in SMC 3.62.010, property deemed surplus shall only be disposed of if reasonable return to the city can be achieved. For the purposes of this section, “reasonable return” shall be construed to mean payment to the city of a sum equal to no less than current market value of the property; provided, however, where the city council finds that the best interests of the city would be served by the sale of such property for less than current market value, then the city council resolution may declare the particular city interest to be served thereby. Such resolution shall require a majority plus one of the full city council for adoption. In no event shall the sale price be less than 70 percent of the current market value. (Ord. 496, 1987)

3.62.060 Exchange of city-owned property.

A. The city of Sultan may at its option exchange properties with other municipal corporations, government agencies, private corporations, or individuals conditioned upon:

1. The area exchanged to the city is equal to or greater than the area conveyed by the city; or

2. The value of the property exchanged to the city is equal to or greater than the value of the property conveyed by the city. If the value of the property exchanged to the city is not equal to or greater than the value conveyed by the city, then the city may accept a cash deposit which will offset the difference in value.

B. In accordance with the provisions of Chapter 39.33 RCW, the Intergovernmental Disposition of Property Act, any sale, lease or exchange of city-owned property to the state or any political subdivision thereof shall be accomplished in accordance with such statute. (Ord. 496, 1987)

3.62.070 Special requirements to sale.

Whether property is sold at auction or by sealed bid, the following deposit requirements shall apply. Unless specifically recommended by the building/planning committee and authorized by the city council as provided in SMC 3.62.020, bidding at auction shall begin at the appraised value of the property or if the property is to be disposed of by the sealed bid process, only sealed bids equal to or greater than the appraised value of the parcel shall be considered.

A. Sealed Bid Process. In the case of sealed bids, any bid that is submitted of $1,000 or less must be accompanied by a bid deposit in the form of a cashier check payable to the city equal to 50 percent of the bid amount. Where the bid amount exceeds $1,000, the bid deposit shall be 10 percent of the bid amount. The successful bidder shall pay the full purchase price within 30 days from the date the bids are opened or in the alternative, deposit an additional 20 percent within the initial 30 days, in which case the purchaser shall have an additional 30 days to make full payment. In the event the purchaser fails to make full payment within the first 30-day period or post the additional 20-percent deposit, within the same period of time, the 10-percent deposit shall be automatically forfeited to the city as liquidated damages. In the event full payment is not made within 30 days from deposit of the additional 20-percent deposit, the full 30-percent deposit shall be automatically forfeited to the city as liquidated damages. This shall not apply in the event the city council authorizes the sale of surplus property by real estate contract. The city council also reserves the right to waive any irregularities in the bid process.

B. Disposition at Auction. Unless otherwise authorized, the bidding where property is disposed of at auction shall begin at the appraised value fixed for property in question. Where property is sold at auction, the prevailing bidder must immediately tender a cash deposit or certified check equal to 50 percent of the purchase price if such price is (less than) $1,000. When the bid amount exceeds $1,000, a bid deposit shall be 10 percent of the bid amount. Payment of the remaining amount due shall be made within 30 days. In the event the purchaser is unable to pay the remaining amount within the required time, the initial deposit shall be forfeited to the city; provided however, the purchaser may deposit an additional 20 percent within the requested time, in which case the time to make full payment shall be extended an additional 30 days. Such additionally deposited sum shall also be automatically forfeited to the city in the event full payment is not made by the conclusion of the 30-day period. (Ord. 496, 1987)

3.62.080 Sale and lease requirements.

A. Sale Requirements.

1. Only in special circumstances shall surplus property be transferred by a conveyance other than quit claim deed. Any proposed conveyance to a private party by real estate contract shall be authorized only by the city council, including the maximum interest rate allowed by statute as established at the time the city council authorizes the mayor to execute the contract.

2. An LID covenant for local improvement district on street and alley improvements shall be retained on all properties within the city located on a street or alley with improvements less than standard and in all cases it shall be the responsibility of the grantee or the vendee, as the case may be, to pay any and all assessment costs.

3. Purchasers shall be obligated to pay their fair share of outstanding LID assessments.

B. Lease Requirements.

1. Final approval of lease shall remain with the city council.

2. Lessees shall be obligated to pay their fair share of outstanding or newly established local improvement district assessments. (Ord. 496, 1987)

3.62.090 City council authority to waive any provision within policy.

The city council may waive any provision of this policy; provided, however, that prior to the time any such waiver shall become effective, the city council shall consider:

A. The specific provision of this policy which is proposed to be waived;

B. The detrimental effect to the city that adherence to the provision would create;

C. The benefit to the city that would accrue as a result of the waiver;

D. The financial impact which will result from the waiver;

E. The development impact that will result from the waiver;

F. The alternatives to the waiver, including the reasoning upon which such alternatives were rejected;

G. Other such consideration that a council member desires to raise. (Ord. 496, 1987)

Chapter 3.64
REGISTRATION OF BONDS AND OBLIGATIONS

Sections:

3.64.010 Definitions.

3.64.020 Findings.

3.64.030 Adoption of registration system.

3.64.040 Statement of transfer restrictions.

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

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

D. “Registrar” means the person or persons designated by the city to register ownership of bonds or obligations under this chapter.

E. “City” means the city of Sultan, Washington. (Ord. 489 § 1, 1986)

3.64.020 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. 489 § 2, 1986)

3.64.030 Adoption of registration system.

The city adopts the following system of registering the ownership of its bonds and obligations.

A. Registration Requirement. All bonds and obligations offered to the public, having a maturity of more than one year and issued by the city after June 30, 1983, on which the interest is intended to be exempt from federal income taxation, shall be registered as to both principal and interest as provided in this chapter.

B. Method of Registration. 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 city or the fiscal agencies, 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 owners. 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.

C. 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 reissuance may be in smaller amounts than the individual denominations for which they are reissued.

D. Appointment of Registrar. Unless otherwise provided in the ordinance authorizing the issuance of registered bonds or obligations, the city clerk/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 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 one year or more after issuance.

E. Duties of Registrar. 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. 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 clerk/treasurer and the registrar, except in instances 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. When the city clerk/treasurer serves as registrar, a separate contract shall not be required. In all cases when the registrar is not the fiscal agencies and the obligation is assignable, the ordinance authorizing the issuance of the registered bonds or obligations shall specify the terms and conditions of:

1. Making payments of principal and interest;

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

3. Specifying record and payment dates;

4. Determining denominations;

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

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

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

8. 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. 489 § 3, 1986)

3.64.040 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. 489 § 4, 1986)

Chapter 3.68
DONATIONS

Sections:

3.68.010 Acceptance of money or property authorized.

3.68.020 Funds and accounting procedures.

3.68.030 Funds to be placed in general fund.

3.68.010 Acceptance of money or property authorized.

Pursuant to RCW 35.21.100, the city, by a majority vote of the council, is authorized to accept any money or property donated, devised or bequeathed to it and to carry out the terms of the donation, devise or bequest if within the powers granted by law. If no terms or conditions are attached to the donation, devise or bequest, the city may expend or use the same for any municipal purpose; provided, however, that if the monetary value of the donation is less than $500.00, the city may accept the donation without a vote of the city council. (Ord. 533, 1989; Ord. 526, 1989)

3.68.020 Funds and accounting procedures.

The city clerk/treasurer is authorized and directed to establish such funds and accounting procedures as may be necessary to carry out the terms or conditions of any donation, devise or bequest, in accordance with the laws of the state of Washington and requirements prescribed by the Office of the State Auditor. (Ord. 526, 1989)

3.68.030 Funds to be placed in general fund.

The city clerk/treasurer is authorized to accept and to account for any previous donations, devises, or bequests for the year 1989 by placing said funds in the general fund to be used for police services. (Ord. 526, 1989)

Chapter 3.70
ART IN PUBLIC PLACES

Sections:

3.70.010 Purpose.

3.70.015 Definitions.

3.70.020 Appropriations for municipal projects.

3.70.010 Purpose.

The city of Sultan has determined that it is a benefit to the community to provide increased access to public art and to enhance the visual aesthetics of the community. Public art provides a stimulating environment for the building/site users and fosters community pride and identity. In harmony with this, it is the policy of the city to provide for acquisition, commissioning and display of works of art in public places of the city. (Ord. 682-98)

3.70.015 Definitions.

A. “Public art” means capital acquisitions of works of art by the city of Sultan.

B. “Municipal construction project” means any capital project paid for wholly or in part by the city of Sultan to construct or remodel any building, park, parking facility, or portion thereof, within the limits of the city except for utilities, streets, or sidewalks.

C. “Total project cost” means the total amount of funds appropriated for the project per construction bid award or negotiated construction contract award; provided, that the following shall be excluded when calculating the total project costs:

1. The amount received from a source of funds for construction projects which precludes expenditures for works of art or cultural projects.

2. The amount of funding provided by:

a. Revenue bonds;

b. Community development block grants;

c. Other federal, state or local grants;

d. LID projects unless specifically authorized in the LID process.

3. Any subsequent change orders for the project.

4. Sales tax or any other tax on the construction bid amount or negotiated construction contract award. (Ord. 682-98)

3.70.020 Appropriations for municipal projects.

Authorization and/or appropriations for municipal construction projects shall include an amount equal to one percent of the total project cost for art enhancement, which shall be deposited into the community improvements fund for art purposes. That amount shall not be modified because of subsequent change orders. (Ord. 682-98)

Chapter 3.72
RETAINAGE BONDS

Sections:

3.72.010 Public works retainage bonds.

3.72.010 Public works retainage bonds.

A. To the extent required by Chapter 60.28 RCW, the city shall release earned retained percentages held by the city at the request of a contractor provided the contractor first submits a bond that: (1) is substantially in the following form; (2) is approved by the city attorney; (3) is from a surety meeting the qualifications described in this section; and (4) otherwise complies with the requirements of this section.

B. The bond shall be substantially in the following form:

Bond No. ____________

KNOW ALL MEN BY THESE PRESENTS, that [Contractor], a corporation organized under the laws of the State of _________, and registered to do business in the State of Washington as a contractor, as Principal, and [Surety], a corporation organized under the laws of the State of __________ and registered to transact business in the State of Washington as surety, as Surety, their heirs, executors, administrators, successors and assigns, are jointly and severally held and bound to the City of Sultan, Washington, hereinafter called “City”, and are similarly held and bound unto the beneficiaries of the trust fund created by RCW Chapter 60.28, in the sum of ______________ and ____/100’s Dollars ($_____________), the payment of which, well and truly to be paid, we bind ourselves, our heirs, executors and successors, jointly and severally, formally by these presents.

THE CONDITIONS OF THE ABOVE OBLIGATION ARE THAT:

WHEREAS, on [date], the Principal executed a contract (the “Contract”) with the City known as:

Project Name: _____________________

Contract Number: ___________________

And,

WHEREAS, said Contract and RCW Chapter 60.28 require the City to withhold from monies earned by the Principal during the progress of the construction, hereinafter referred to as “earned retained funds”; and

WHEREAS, the Principal requested that the City release _______ and ___/100’s Dollars ($_____________) of the earned retained funds, as allowed under RCW Chapter 60.28;

NOW, THEREFORE, the condition of this obligation is such that the Surety is held and bound to the City to indemnify, defend and hold the City harmless from any and all loss, costs or damages that the City may sustain by reason of release of said earned retained funds to Principal, then this obligation to be null and void, otherwise to remain in full force and effect.

PROVIDED, HOWEVER, it is expressly understood and agreed that:

1. Any suit or action under this bond must be instituted within the time period provided by applicable law. The bond shall be subject to all claims and liens provided for by law or Contract against the earned retained funds and in the same manner and priority as set forth for retained percentages in RCW Ch. 60.28 and the Contract.

2. The Surety hereby consents to and waives notice of any extension in the time for performance of the Contract, assignment of obligations under the Contract, or Contract alteration, termination, amendment or change order.

3. Until written release of this obligation by the City, this bond may not be terminated or canceled by the Principal or Surety for any reason. Any extension of time for the Principal’s performance on the Contract, assignment of obligations under the Contract, or Contract alteration, amendment or change order shall not release the Surety from its obligation under this bond.

4. RCW Ch. 60.28 authorizes the City to substitute a retainage bond in lieu of earned retained funds and the Surety hereby waives any defense that this bond is void or otherwise not authorized by law.

5. Any claim or suit against the City to foreclose the liens provided for by RCW Ch. 60.28 shall be effective against the Principal and Surety and any judgment under RCW Ch. 60.28 against the City shall be conclusive against the Principal and the Surety.

6. The laws of the State of Washington shall apply to the determination of the rights and obligations of the parties hereunder. Venue for any dispute or claim hereunder shall be the state courts of Washington in Snohomish County, Washington.

C. The city attorney may, in his or her discretion, waive conditions of the bond as appropriate.

D. The bond must be duly executed by the contractor and a surety that is (1) authorized to do business as a surety in the state of Washington and (2) rated at least “A” or better and with a numerical rating of no less than seven by A.M. Best Company. The bond must be accompanied by a fully executed power of attorney appointing the signer for the surety as the surety’s attorney-in-fact. (Ord. 789-02 § 1)