Chapter 3.12 FUNDS

A. The city shall use the following five components of fund balance, as defined by GASB Statement No. 54, in the reporting of governmental fund balances within the annual financial report:

1. Nonspendable fund balance.

2. Restricted fund balance.

3. Committed fund balance.

4. Assigned fund balance.

5. Unassigned fund balance.

B. Council hereby adopts the following governmental fund balance policy statements:

1. Authority to Commit Fund Balance. Commitments will only be used for specific purposes pursuant to a formal ordinance of the council and can only be removed by additional action of the council. Council action to commit fund balance needs to occur within the calendar reporting period, no later than December 31st; however, the amount can be determined subsequent to the release of the financial statements.

2. Authority to Assign Fund Balance. The city council has the authority to assign amounts intended to be used for specific purposes. The city council delegates to both the mayor and the finance director the authority to assign amounts intended to be used for specific purposes, for the purpose of reporting these amounts in the annual financial statements. In this situation, the amounts cannot be spent without council approval. In both situations, the assignment cannot exceed the available fund balance in any fund.

3. Prioritization of Fund Balance Use. The city considers restricted fund balances to have been spent first when an expenditure is incurred for purposes for which both restricted and unrestricted fund balance is available. Similarly, when an expenditure is incurred for purposes for which amounts in any of the unrestricted classifications of fund balance (committed, assigned or unassigned) could be used, the city considers committed amounts to be reduced first, followed by assigned amounts and then unassigned amounts. (Ord. 3552, 2011).

3.12.010 Arterial street fund – Established.

There is created and established in the treasury of the city a new fund to be known as the “arterial street fund.” (Ord. 1392 § 1, 1961).

3.12.020 Arterial street fund – Moneys to be deposited.

All moneys collected from the State Treasurer from the one-half cent gas tax allocation, together with 25 percent city matching funds, shall be deposited in said arterial street fund. (Ord. 1392 § 2, 1961).

3.12.030 Arterial street fund – Use.

All cost and expense of the arterial street improvements as defined and adopted by resolution of the city council under the six-year street plan be paid from the arterial street fund. (Ord. 1392 § 3, 1961).

3.12.040 Equipment rental fund – Established – Uses.

There is created and established in the city a special fund which shall be known and designated as the “equipment rental fund,” to be used as a revolving fund for the maintenance, repair, replacement and purchase of equipment and for the purchase of materials and supplies to be used in the administration of said fund. (Ord. 1487 § 1, 1965).

3.12.050 Equipment rental fund – Motor equipment included when.

All motor equipment of the street department shall be transferred to the equipment rental fund as of July 1, 1965. Motor equipment of other departments of the city may be transferred to the equipment rental fund from time to time as the city council shall direct. (Ord. 1487 § 2, 1965).

3.12.060 Equipment rental fund – Charges and terms of rental.

The charges for rental of such equipment shall be sufficient to cover the repair, replacement, purchase and operation thereof, and the terms of rental shall be on an annual, monthly, daily, hourly, mileage or other basis as be determined by the mayor, subject to the approval of the city council. A schedule of such charges shall be prepared by the mayor, subject to the approval of the city council. Such rental rates shall be reviewed and if need be, revised periodically to meet changing costs of repair, replacement, purchase, and operations. (Ord. 1487 § 3, 1965).

3.12.070 Equipment rental fund – Recordkeeping and warrants for expenditures.

There shall be kept such books, accounts and records as are necessary to control and report the financial operations of the equipment rental fund.

All expenditures from the equipment rental fund shall be made by warrant upon the presentation of properly signed city of Mount Vernon vouchers in the same manner as other funds of the city. (Ord. 1487 § 4, 1965).

3.12.080 Equipment rental fund – Expenditure of deposited funds.

All moneys deposited in said equipment rental fund and not expended as provided herein shall remain in the fund from year to year and shall not be transferred to any other fund or expended for any other purposes whatsoever. (Ord. 1487 § 5, 1965).

3.12.090 Equipment rental fund – Reversion of funds following abolition.

If, at any time hereafter, the city council shall abolish said equipment rental fund, then all moneys on deposit therein, and all equipment therein, shall revert to the several funds and departments participating in the equipment rental fund. (Ord. 1487 § 6, 1965).

3.12.100 Federal revenue sharing fund – Established.

There is created and established in the treasury of the city a fund which shall be known as the “federal revenue sharing fund.” (Ord. 1667 § 1, 1972).

3.12.110 Federal revenue sharing fund – Moneys to be included – Expenditure regulations.

All moneys received from the United States Treasurer under the State and Local Fiscal Assistance Act of 1972 will be placed in the federal revenue sharing fund; and all expenditures from said fund shall be made in accordance with the budget and accounting laws of the state of Washington and in accordance with the ordinances of the city. (Ord. 1667 § 2, 1972).

3.12.120 Garbage equipment cumulative reserve fund – Established – Administration.

There is created and established a “garbage equipment cumulative reserve fund,” as provided in Chapter 8.12 MVMC, the same to be administered as provided in said chapter. (Ord. 1082 § 3, 1952).

3.12.130 Garbage warrant redemption fund – Established – Administration.

There is created and established a “garbage warrant redemption fund,” as provided in Chapter 8.12 MVMC, the same to be administered as provided in said chapter. (Ord. 1082 § 2, 1952).

3.12.140 General claims fund – Established – Use.

There is created and established in the treasury of the city a fund to be known and designated as the “general claims fund,” from which shall be paid all accounts payable owed to vendors of the city. (Ord. 1710 § 1, 1974).

3.12.150 General claims fund – Record keeping required.

The city clerk-treasurer is directed to establish and keep all necessary records for the proper administration of said general claims fund. (Ord. 1710 § 2, 1974).

3.12.160 General claims fund – Transfer of funds authorized when.

Upon receipt of transfer orders the city clerk treasurer shall transfer moneys from other funds each month covering the amount of said general claims; the general claims fund to act in the capacity of a clearing fund only. (Ord. 1710 § 3, 1974).

3.12.170 Health and sanitation fund – Established – Administration.

There is created and established a “health and sanitation fund,” as provided in Chapter 8.12 MVMC, the same to be administered as provided in said chapter. (Ord. 1117 § 1, 1954; Ord. 1082 § 1, 1952).

3.12.180 Local improvement guaranty fund – Established – Purpose.

In accordance with Chapter 141, Laws of 1923, of the state of Washington, the city elects to and does establish and create a special fund in the city treasury to be known as the “local improvement guaranty fund,” for the purpose of guaranteeing to the extent of such fund the payment of all bonds issued by the city on and after July 12, 1923, in local improvement districts for the construction of local improvements therein. (Ord. 622 § 1, 1923).

3.12.190 Local improvement guaranty fund – Moneys to be deposited.

There shall be paid into such guaranty fund the interest received from bank deposits on all moneys in local improvement assessment districts, the bonds in which are guaranteed by this fund, and also all interest received from bank deposits of the moneys in such guaranty fund. There shall also be paid into such fund all amounts remaining in any local improvement fund after the payment of all outstanding obligations against the same. There shall also be levied from time to time as other taxes are levied such sums as may be needed to meet the financial requirements of the fund guaranteed hereunder, but not exceeding an amount which, together with the other moneys in said fund, equals five percent of the outstanding bond obligations guaranteed by such fund. (Ord. 622 § 2, 1923).

3.12.200 Local improvement guaranty fund – Method of use.

Whenever there shall be insufficient money in the local improvement fund of any particular district, the bonds of which are guaranteed under the ordinance codified herein, to pay the interest or principal of any of the bonds issued in such district, at the time the same become due, the city clerk treasurer shall pay such interest or principal of such bond or bonds out of said local improvement guaranty fund to the extent of the moneys therein, and such interest coupons or bonds so paid out of such guaranty fund shall thereupon become the property of said guaranty fund, and whenever there shall be available money in any local improvement fund sufficient to take up one or more of such interest coupons or bonds so held by such guaranty fund, the city clerk-treasurer shall pay such interest coupons or bonds, as the case may be, in the usual way and turn the proceeds of such payment into said guaranty fund. (Ord. 622 § 3, 1923).

3.12.210 Local improvement guaranty fund – Warrant procedure authorized when.

In case there shall not be sufficient moneys in the guaranty fund to pay the principal and interest of any bonds payable therefrom the city clerk-treasurer is authorized and directed to draw warrants upon such funds in payment of the amount due for principal and interest of such bonds so presented for payment out of such guaranty fund, such warrants to draw interest at the rate of six percent per year; provided, however, that no warrants shall be so issued as to cause warrants to be outstanding against such guaranty fund at any one time in an amount exceeding five percent of the outstanding bond obligations guaranteed by such fund; and provided, further, that each year a sufficient amount shall be included in the annual budget and tax levy so that with the other cash resources of the fund all warrants issued during the previous fiscal year will be paid and retired. (Ord. 622 § 4, 1923).

3.12.220 Local improvement guaranty fund – Use restrictions – Certification.

After July 12, 1923, local improvement intended to be paid for in whole or in part by special assessments shall be ordered where the estimated cost of such improvement, when added to all other unpaid local improvement assessments against the property included in the district, excluding penalties and interest, shall exceed in amount of 75 percent the actual value of the real property, exclusive of improvements thereon within the district according to the last assessment for purposes of general taxation; provided, however, that nothing in this section shall prevent the city council by unanimous vote from ordering the construction of sanitary sewers where in the judgment of the council the same are necessary for public health and assessing a part or the whole of the cost thereof to the property benefited in the manner provided by law. On or before the time fixed for hearing of any resolution of intention, the city clerk-treasurer shall certify to the council the amount of outstanding and unpaid local improvement assessments against the property included within the proposed improvement district, excluding penalties and interest, and also the actual value of the real property, exclusive of improvements thereon, within the district according to the last assessment for purposes of general taxation. In the absence of fraud or gross mistake such certificate shall be final and conclusive. (Ord. 622 § 5, 1923).

3.12.230 Park fund – Moneys to be deposited – Use restrictions.

A fund is created, to be called the “park fund,” into which fund shall be put all moneys collected or received by the city for park purposes, and from which shall be paid all obligations incurred for park purposes; provided, that all disbursements shall be made only upon claims and vouchers therefor in the form provided by the clerk-treasurer of the city as for other claims, and after having been approved by the chairman of the board of park commissioners and the city council. (Ord. 647 § 1, 1925).

3.12.240 Payroll fund – Established – Use.

There is created and established in the treasury of the city a fund to be known and designated as the “payroll fund,” from which shall be paid all salaries and wages to city employees. (Ord. 1502 § 1, 1966).

3.12.250 Payroll fund – Recordkeeping required.

The city clerk-treasurer is directed to establish and keep all necessary records for the proper administration of the payroll fund. (Ord. 1502 § 2, 1966).

3.12.260 Payroll fund – Transfer of funds authorized when.

Upon receipt of transfer orders from the city clerk-treasurer, the city clerk-treasurer shall transfer moneys from other funds each month covering the amount of said payroll, the payroll fund to act in the capacity of a clearing fund only. (Ord. 1502 § 3, 1966).

3.12.270 Maintenance building construction fund – Established – Use.

There is hereby established a new fund designated the “maintenance building construction fund,” which shall be used to pay the costs of construction of the city maintenance building complex, as well as the cost of equipping and providing an inventory for said complex. (Ord. 1847 § 1, 1976).

3.12.280 Public works employment fund – Established – Use.

There is established a new fund designated the “public works employment fund,” which shall be used to receive and disburse the costs of construction allowed under the grant obtained under the provisions of the Local Public Works Capital Development and Investment Act of 1976, as amended by the Public Works Employment Act of 1977, received by the city and accepted on September 15, 1977. (Ord. 1896 § 1, 1977).

3.12.290 Park facility damage deposits fund – Established.

There is hereby established in the city general ledger a fund titled “park facility damage deposits.” (Ord. 2088 § 1, 1983).

3.12.300 Park facility damage deposits fund – Accounting for moneys received.

Unless otherwise determined by the State Auditor, it shall not be necessary to account for damage deposit moneys received on a city treasurer’s receipt, and the same may be recorded on separate receipts to be used for that purpose. (Ord. 2088 § 2, 1983).

3.12.310 Internal governmental service fund – Health care benefits – Established.

There is hereby established an internal governmental service fund which shall receive contributions from other city operating funds for the payment of claims and administrative expenses associated with health care coverage. Such fund shall be a flexible budget fund with expenditures limited to available resources. Such fund shall be utilized to provide health care benefits as contemplated by the Mount Vernon Personnel Plan and shall be restricted to full-time, permanent, nonunion employees, and union employees choosing to participate in the program through contractual agreements entered into as a part of the collective bargaining process. (Ord. 2891 § 1, 1998; Ord. 2502 § 1, 1992).