Chapter 3.41
INVESTMENT OF CITY FUNDS*

Sections:

3.41.010    Investment committee – Investments designated.

3.41.020    Council consent not required – Conversion into cash.

3.41.030    Report of investment transactions.

3.41.040    Investment for benefit of specific fund or funds.

3.41.050    Investment of all other excess or inactive funds.

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

3.41.010 Investment committee – Investments designated.

A. In accordance with RCW 35.39.030, authority is hereby granted to a Finance Committee composed of the City Manager and the Director of Finance 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. 19-1021 § 2 (part))

3.41.020 Council consent not required – Conversion into cash.

The City Manager 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. 19-1021 § 2 (part))

3.41.030 Report of investment transactions.

The Director of Finance shall prepare a quarterly report for the Administration and Finance Committee showing all investment transactions. (Ord. 19-1021 § 2 (part))

3.41.040 Investment for benefit of specific fund or funds.

A. 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 funds in all applicable statutes of the State and ordinances of the City.

B. The responsibility for determining the amount of money available in each fund for investment purposes shall be placed upon the Finance Director who shall make such recommendations to the Finance Committee created by SMC 3.41.010. In accordance with said section, the ultimate decision regarding investment shall be with the Finance Committee.

C. 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 (1) 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. 19-1021 § 2 (part))

3.41.050 Investment of all other excess or inactive funds.

A.  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 SMC 3.41.010, in the same manner and subject to the same limitations as provided for City funds in all applicable statutes of the State and ordinances of the City.

B. 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. 19-1021 § 2 (part))