Chapter 5.24
INVESTMENT OF CITY FUNDS*

Sections:

5.24.010    Investment committee—Investments designated.

5.24.020    Council consent not required—Conversion into cash.

5.24.030    Report of transactions.

5.24.040    Investment for benefit of specific fund or funds.

5.24.050    Investment of all other excess or inactive funds.

5.24.060    Funds available for investment.

*    For the statutory provision regarding the investment of a code city’s inactive or excess funds, see RCW 35A.40.050.

5.24.010 Investment committee—Investments designated.

In accordance with RCW 35.39.030, authority is hereby granted to a committee composed of city manager and the director of finance and administration to invest any portion of the moneys in its inactive funds or in other funds in excess of current needs in:

(1)    United States bonds;

(2)    United States certificates of indebtedness;

(3)    Bonds or warrants of this state;

(4)    General obligation or utility revenue bonds or warrants of its own or any other city or town in the state;

(5)    Its own bonds or warrants of a local improvement or condemnation award district which is within the protection of the local improvement guaranty fund law; and

(6)    In other investments authorized by law. (Ord. 4416 § 27, 2013: Ord. 1020 § 1, 1966)

5.24.020 Council consent not required—Conversion into cash.

The city manager and the director of finance and administration shall have the authority to make the investments without the consent of the city council for each investment and may, at any time, convert the above-mentioned securities, or any part thereof, into cash. (Ord. 4416 § 28, 2013: Ord. 1020 § 2, 1966)

5.24.030 Report of transactions.

The director of finance and administration shall prepare a report for the city council each month showing all investment transactions. (Ord. 4416 § 29, 2013: Ord. 1020 § 3, 1966)

5.24.040 Investment for benefit of specific fund or funds.

Excess and inactive funds on hand in the treasury of the city may be invested in the same manner and subject to the same limitations as provided for city and town funds in all applicable statutes of the state and ordinances of the city.

The responsibility for determining the amount of money available in each fund for investment purposes shall be placed upon the department, division or board responsible for the administration of such fund, who shall make such recommendations to the finance committee created by Section 5.24.010 of this code. In accordance with said section, the ultimate decision regarding investment shall be with the finance committee.

Moneys thus determined available for this purpose may be invested on an individual fund basis or may, unless otherwise restricted by law, be commingled with one common investment portfolio for the mutual benefit of all participating funds; provided, that if such moneys are commingled in a common investment portfolio, all income derived therefrom shall be apportioned among the various participating funds in direct proportion to the amount of money invested by each. (Ord. 2260 § 1 (part), 1974)

5.24.050 Investment of all other excess or inactive funds.

Any excess or inactive funds on hand in the city treasury not otherwise invested for the specific benefit of any particular fund may be invested by the finance committee created by Section 5.24.010 of this code, in the same manner and subject to the same limitations as provided for city and town funds in all applicable statutes of the state and ordinances of the city.

There is created within the current expense fund an account to be known as the interest revolving account, into which shall be deposited all interest income and other earnings from the investment of excess or inactive funds of the city treasury not otherwise invested for the specific benefit of any particular fund. The moneys in the interest revolving account shall be used solely for the benefit of the current expense fund. (Ord. 2260 § 1 (part), 1974)

5.24.060 Funds available for investment.

Pursuant to Sections 5.24.040 and 5.24.050, moneys available for investment may at the discretion of the finance committee be invested in a common investment fund. All interest earned from the common investment fund shall be deposited in an interest revolving fund. After first providing for all costs and expenses incurred in the administration of the common investment fund, the finance committee may annually distribute from the interest revolving fund the interest earnings attributable to each fund participating in the common investment fund.

In determining the amount of earnings allocable to each participating fund, the committee may take into consideration the annual average balance (calculated upon monthly balances of each participating fund), the minimum fund balance required to meet the ongoing operations and expenses of said fund, or in the alternative, the amount designated by the appropriate department head as available on a monthly or annual basis for investment.

After such distribution of interest earnings is made, all interest earnings remaining in the interest revolving fund shall be deemed to be interest earnings on treasurer’s excess cash or excess funds in the current expense fund, and shall be for the benefit of the current expense fund; provided, however, nothing in this section, nor Sections 5.24.040 and 5.24.050, shall prevent the city council, in adopting the biennial budget, from allocating all such earnings or interest income for the benefit of the current expense fund; provided further, that all earnings from the sale of general obligation bonds or revenue bonds, or similar instruments of indebtedness, shall be invested or used in such manner as the initiating ordinances, resolutions or bond covenants may lawfully prescribe. (Ord. 4566 § 5, 2017: Ord. 2609 § 1, 1981: Ord. 2455 § 1, 1979)