Chapter 4.40 FUNDS

The City Treasurer is hereby authorized to establish a petty cash fund up to but not exceeding $500.00 for the efficient carrying out of the purposes for which said fund is established. This fund is established for the purpose of making minor authorized disbursements. The fund shall be administered by the City Treasurer in accordance with regulations providing for such lawful administration.

(Ord. 176 § 1, 1997; Ord. 10 § 1, 1995).

4.40.020 Petty cash fund – Appropriation of funds.

A. A sum of up to but not exceeding $500.00 is appropriated from the City general fund to the City petty cash fund. The Finance Division will assure that the petty cash fund is reconciled and replenished at least monthly so that the balance remaining in petty cash, plus the amount of the replenishment check, equals the authorized $500.00 amount.

B. Petty Cash Procedures. The Finance Manager will establish and implement written procedures for the appropriate and lawful disbursement of petty cash.

(Ord. 176 § 2, 1997; Ord. 10 § 2, 1995).

4.40.030 Change funds – Authorization.

The Department of Community and Economic Development and Finance Department are each authorized to maintain a change fund for the purpose of making change. The funds shall be administered by a custodian appointed by the Finance Manager, in accordance with regulations providing such lawful administration.

(Ord. 749 § 6, 2021; Ord. 306 § 1, 2001; Ord. 177 § 1, 1997).

4.40.040 Change funds – Appropriation of funds.

A sum of up to but not exceeding $100.00 each is appropriated from the City general fund balance to the change fund for the Department of Community and Economic Development. A sum of up to but not exceeding $500.00 is appropriated from the City general fund balance to the change fund for the Finance Department. Change fund custodians shall assure that their change fund and any accompanying receipts are reconciled on a daily basis.

(Ord. 749 § 7, 2021; Ord. 471 § 1, 2006; Ord. 306 § 2, 2001; Ord. 177 § 2, 1997).

4.40.050 Change fund procedures.

The Finance Manager will establish and implement written procedures for the appropriate and lawful administration of the change funds.

(Ord. 177 § 3, 1997).

4.40.060 General fund (RCW 35.37.010).

A. Purpose. The general fund is established to account for all receipt and disbursement transactions associated with ordinary City operations that are not required to be accounted for in another fund.

B. Revenue Sources. Taxes and general revenues, including but not limited to property taxes, local sales taxes, franchise fees, gambling taxes, liquor taxes, utility taxes, fines and forfeitures, license fees, permits, park fees, and miscellaneous other revenues that support general government operations.

(Ord. 732 § 1, 2020; Ord. 179 § 2, 1997).

4.40.070 Street fund.

A. Purpose. This fund is established to account for the receipt and disbursements of State-levied unrestricted motor vehicle fuel taxes, pursuant to RCW 48.68.090.

B. Revenue Sources. Specific revenue sources shall include, but not be limited to, unrestricted motor vehicle fuel taxes, transportation related fees, permits, interest earnings, and such other sources as may be authorized by the City Council.

(Ord. 732 § 2, 2020; Ord. 179 § 2, 1997).

4.40.080 Arterial street fund.

Repealed by Ord. 732.

(Ord. 179 § 2, 1997).

4.40.090 Real estate excise tax fund.

A. Purpose. This fund is established to account for the receipt and disbursement of the real estate excise tax authorized by RCW 82.46.010, and dedicated for capital purposes defined in RCW 35.43.040. Such expenditures may include public buildings and facilities, parks, and debt service associated with such capital oriented projects.

This fund is also established to account for the receipt and expenditure of the real estate excise tax authorized pursuant to the Growth Management Act (RCW 82.46.035), which restricts those revenues to financing capital projects specified in a capital facilities plan.

B. Revenue Sources. Real estate excise taxes authorized by RCW 82.46.010 and 82.46.035, interest earnings, and other revenue that may be authorized by the City Council.

(Ord. 179 § 2, 1997).

4.40.100 Path and trails reserve fund.

Repealed by Ord. 732.

(Ord. 179 § 2, 1997).

4.40.110 Surface water management fund.

A. Purpose. This fund is established to administer and account for all receipts and disbursements related to the City’s surface and storm water management system. All service charges shall be deposited in this fund for the purpose of paying all or any part of the cost and expense of maintaining and operating surface and storm water management facilities, all or any part of the cost and expense of planning, constructing and improving any such facilities, or to pay or secure the payment of all or any portion of any issue of general obligation or revenue bond issued for such purpose.

B. Revenue Sources. Revenues supporting this fund’s activities include various storm and surface water charges, interest earnings, and other revenue sources as may be authorized by the City Council.

(Ord. 179 § 2, 1997).

4.40.120 Strategic reserve fund.

A. Purpose. This fund is established to set aside financial resources to be used to mitigate adverse situations occurring as the result of severe short-term revenue shortfalls or expenditures resulting from emergencies, or as otherwise designated by the City Council.

B. Revenue Sources. This fund shall be financed by transferring undesignated and unreserved fund balance in the general fund at the end of each calendar year or by other appropriation, as deemed appropriate by the City Council.

C. Authorization for Strategic Reserve Fund Use. The use of the strategic reserve fund must be authorized and approved by the affirmative vote of five Council members.

(Ord. 643 § 1, 2014; Ord. 179 § 2, 1997).

4.40.130 Councilmanic debt service fund.

A. Purpose. This fund is established to account for the debt service, and debt service related costs, on all City Council approved general obligation bonds or other general obligation debt.

B. Revenue Sources. Allocations of the City’s regular levy property taxes, operating transfers from the real estate excise tax fund or other funds, or other revenue sources as may be designated by the City Council.

C. Other General Information. The authorizing ordinances for the bond sale and the related bond debt service schedule provide budget authority for this fund.

(Ord. 179 § 2, 1997).

4.40.140 Capital projects – Parks fund.

A. Purpose. The fund is established to account for receipts and disbursements related to acquisitions, design, construction and any other related park capital project expenditures. These fund appropriations shall not lapse at the end of any calendar year but shall remain in effect until the project is complete.

B. Revenue Sources. Revenues supporting this fund’s activities include bond proceeds, grant proceeds, interfund transfers and other revenue sources as may be authorized by the City Council.

C. Fund Administration. The City Treasurer or his or her designee shall maintain a separate record of accounts showing the receipts and disbursements of each and every grant assigned to this fund. The department assigned, by the terms of the City’s acceptance of said grant, to administer any program or activity financed wholly or in part by the grant financially controlled by this fund, shall approve all expenditures therefrom and shall maintain such records and documents, and prepare such reports of a nonfinancial nature as may be required by the grantor agency or the City Council.

(Ord. 179 § 2, 1997).

4.40.150 Capital projects – Public works fund.

A. Purpose. The fund is established to account for receipts and disbursements related to acquisition, design, construction and any other related street, traffic, and surface water management capital project expenditures. These fund appropriations shall not lapse at the end of any calendar year but shall remain in effect until the project is complete.

B. Revenue Sources. Revenues supporting this fund’s activities include bond proceeds, grant proceeds, mitigation fees, interfund transfers, and other revenue sources as may be authorized by the City Council.

C. Fund Administration. The City Treasurer or his/her designee shall maintain a separate record of accounts showing the receipts and disbursements of each and every grant assigned to this fund. The department assigned, by the terms of the City’s acceptance of said grant, to administer any program or activity financed wholly or in part by the grant financially controlled by this fund, shall approve all expenditures therefrom and shall maintain such nonfinancial records and documents, and prepare such reports as may be required by the grantor agency or the City Council.

(Ord. 179 § 2, 1997).

4.40.160 Capital projects – Municipal facilities fund.

B. Revenue Sources. Revenues supporting this fund’s activities include bond proceeds, grant proceeds, interfund transfers and other revenue sources as may be authorized by the City Council.

(Ord. 179 § 2, 1997).

4.40.170 Fleet and equipment fund.

A. Purpose. This fund shall be used as the means through which to account for all costs associated with operating, maintaining and replacing the City’s nonproprietary owned vehicular and other motorized equipment. This fund shall own and depreciate all nonproprietary fund assets of this nature, and shall accumulate reserves for the replacement of these assets. This fund shall be used to pay salaries and operating costs, including equipment and furniture, associated with its administration, and costs required to repair, replace, purchase and operate equipment owned by this fund.

B. Revenue Sources. Interfund charges shall recover equipment maintenance and operating costs, equipment replacement and acquisition costs, and the cost of fund administration. Other revenues may include interest earnings, proceeds from the sale of assets, interfund transfers, and other revenue sources designated by the City Council.

C. Other General/Financial Information.

1. Revenues. Revenues shall be recorded as either replacement reserves or for maintenance and operations. Replacement reserve cash shall be maintained in a separate cash account in the accounting records. The replacement reserve shall only be used for vehicle and equipment replacement purposes.

2. Charges. Charges for rental of such equipment shall be sufficient to cover the repair, replacement, purchase and operation thereof. Maintenance and operation costs may also be recovered on an actual cost basis, rather than through monthly or other rate structures.

(Ord. 179 § 2, 1997).

4.40.180 Information services fund.

A. Purpose. This fund shall serve as the vehicle through which to account for all costs associated with information systems, telecommunications, cable, geographical information services (GIS), postage operations, and copier and duplication service for the City. This fund shall own and depreciate all assets related to these functions which are not otherwise owned by proprietary funds of the City. It shall accumulate reserves for the replacement of these assets. This fund shall be used to pay salaries and operation costs, including equipment and furniture, associated with its administration and costs required to repair, replace, purchase and operate equipment owned by this fund.

B. Revenue Sources. Interfund charges shall be made to recover equipment maintenance and operating costs, equipment replacement and acquisition costs, and the cost of fund administration. Other revenues may include interest earnings, proceeds from the sale of assets, interfund transfers, and other revenue sources designated by the City Council.

C. Other General/Financial Information. Revenues recorded shall be specified as either for replacement reserves or for maintenance and operation. Replacement reserve cash shall be maintained in a separate cash account in the accounting records. The replacement reserves shall only be used for equipment replacement purposes.

Charges for the use of such equipment shall be sufficient to cover the repair, replacement, purchase and operation thereof.

All information system equipment purchased by other City funds of a nonproprietary nature shall be donated to this City fund effective January 1, 1996. All subsequent acquisitions shall be likewise donated to this fund.

(Ord. 732 § 3, 2020; Ord. 179 § 2, 1997).

4.40.190 Property management fund.

A. Purpose. The property management fund is established to account for all costs associated with the maintenance and operation of City-owned facilities and properties as specified by the City Treasurer or his or her designee. City building facilities and furnishings shall be owned by this fund. Maintenance/operation costs and replacement recovery shall be charged to City funds and departments. Debt service payments on specified facility acquisitions may also be included in this fund along with revenues dedicated to these payments.

B. Revenue Sources. Interfund charges shall be made, as necessary, to recover maintenance and operating costs, furnishing and facility replacement and acquisition costs, and the cost of fund administration. Other revenues may include interest earnings, proceeds from the sale of assets, lease payments, interfund transfers, and other revenue sources designated by the city council.

C. Other General/Financial Information. Revenues recorded shall be specified as either for replacement reserves or for maintenance and operations. Replacement reserve cash shall be maintained in a separated cash account in the accounting records.

(Ord. 179 § 2, 1997).

4.40.200 Risk management fund.

A. Purpose. This fund is the vehicle for financial administration of the city’s comprehensive risk management/self-insurance program.

B. Revenue Sources. Monies may be paid into this fund from time to time from various city operating funds as insurance premiums. Fund revenues may also include interest earnings, operating transfers and other revenue sources as may be designated by the city council.

(Ord. 179 § 2, 1997).

4.40.210 University Place retirement system fund.

Repealed by Ord. 732.

(Ord. 179 § 2, 1997).

4.40.220 Deferred compensation fund.

Repealed by Ord. 732.

(Ord. 179 § 2, 1997).

4.40.230 Investment control fund.

Repealed by Ord. 732.

(Ord. 179 § 2, 1997).

4.40.240 Donations and gifts to University Place fund.

A. Purpose. This special revenue fund is established to receive donations of cash. The purpose of this fund is to provide for deposit and financial administration, including project accounting, of monetary donations to the City and expenditure thereof. Donations and gifts which the City receives that are not to be expended in any specified manner may be deposited into the general fund’s private contributions revenue account. This fund does not intend to substitute for City policies and processes in place regarding donations of real property.

B. Revenue Sources. Cash contributions from various sources, including interest earnings.

C. Fund Administration and Procedures. The City Treasurer or his or her designee will establish and implement written procedures for the administration of the fund.

(Ord. 780 § 1, 2024; Ord. 299 § 1, 2000; Ord. 264 § 2, 2000; Ord. 179 § 2, 1997).

4.40.250 Endowment fund.

A. Purpose. This is an expendable trust fund established to account for endowments totaling more than $25,000 received for specific expendable purposes that may only be expended for purposes designated by a formal trust agreement.

This fund shall be a project-based fund that shall record all transactions associated with the endowments. The city manager is authorized to accept any endowment made on behalf of the donor’s project, to be used for purposes designated by a formal trust agreement between the donor(s) and city. Each project within this fund shall be established by a formal trust agreement between the donor(s) and the city through a resolution approved by the city council.

B. Revenue Sources. Cash contributions from various sources primarily endowments received for specific expendable purposes and revenues earned on those endowments. Investment earnings shall be placed in the general fund unless otherwise stipulated in the formal trust agreement.

C. Fund Administration. The city manager or his or her designee is hereby authorized to accept on behalf of the city all monetary endowments to the city, subject to council approval through a resolution. The city manager may decline to accept an endowment if such endowment is not consistent with the policies, plans, goals, or ordinances of the city or if acceptance of same is contrary to law. All endowments accepted by the city shall be deposited in the fund and assigned to an appropriate project within the fund or, if necessary, a new project shall be established within the fund by the city treasurer or his or her designee. The city treasurer or his or her designee is authorized to expend any monies in accordance with the formal trust agreement maintained within the fund, unless otherwise provided by ordinance.

(Ord. 264 § 1, 2000; Ord. 179 § 2, 1997).

4.40.260 Authorization for interfund loan.

The University Place city council does hereby authorize the city treasurer, or his/her designee, to make interfund loans of those municipal monies which are otherwise legally available for investment purposes, where such loans would be necessary to ensure compliance with the provisions of RCW 43.09.210.

(Ord. 179 § 3, 1997).

4.40.270 Procedures for interfund loan.

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

A. The city treasurer or his or her designee shall approve all interfund loans and provide in the written authorization a planned schedule of repayment of the loan principal and shall set a reasonable rate of interest (based upon the external rate available to the municipality) to be paid to the lending fund.

B. Interest shall be charged in all cases unless:

1. The borrowing fund has no independent sources of revenue other than the lending fund;

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

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

C. The borrowing fund must anticipate sufficient revenues to be in a position over the period of the loan to make the specified principal and interest payments.

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

E. Only the portion of a given fund which, in the prudent management of municipal finances as determined by the city treasurer, is clearly inactive or in excess of current needs may be loaned to other municipal funds or invested.

F. Appropriate accounting records shall be maintained to reflect the balances of loans payable and receivable in every fund affected by such transactions.

(Ord. 179 § 4, 1997).

4.40.280 Additional authority.

The council further hereby grants to the city treasurer, or his or her designee, the authority to make interim, temporary loans from one fund to another during the course of the fiscal year. The term of such loan shall not exceed the end of the fiscal year in which loan was made.

(Ord. 179 § 5, 1997).

4.40.290 Interest earnings.

When not otherwise specified by ordinance, interest earnings accruing on idle cash balances in funds of the city shall be apportioned to the general fund.

(Ord. 179 § 6, 1997).

4.40.300 Change fund – City Clerk’s office.

A. Authorization of Change Fund. The City Clerk’s office is authorized to maintain a change fund for the purpose of making change. The funds shall be administered by a custodian appointed by the Finance Director, in accordance with regulations providing such lawful administration.

B. Appropriation of Funds. A sum of up to, but not exceeding, $100.00 is to be appropriated from the City general fund fund balance to the change fund for the City Clerk’s office. The change fund custodian shall assure that their change fund and any accompanying receipts are reconciled on a daily basis.

C. Change Fund Procedures. The change fund custodian will abide by the written procedures for the appropriate and lawful administration of the change fund, as established by the finance director.

(Ord. 362 §§ 1 – 3, 2002).

4.40.310 Change fund – Senior/recreation center.

A. Authorization of Change Fund. The senior/recreation center is authorized to maintain a change fund for the purpose of making change. The funds shall be administered by a custodian appointed by the Finance Director, in accordance with regulations providing such lawful administration.

B. Appropriation of Funds. A sum of up to, but not exceeding, $100.00 is to be appropriated from the City general fund fund balance to the change fund for the senior/recreation center. The change fund custodian shall assure that their change fund and any accompanying receipts are reconciled on a daily basis.

C. Change Fund Procedures. The change fund custodian will abide by the written procedures for the appropriate and lawful administration of the change fund, as established by the Finance Director.

(Ord. 375 §§ 1 – 3, 2003).

4.40.320 Change fund – Animal control office.

A. Authorization of Change Fund. The animal control office is authorized to maintain a change fund for the purpose of making change. The funds shall be administered by a custodian appointed by the Finance Director, in accordance with regulations providing such lawful administration.

B. Appropriation of Funds. A sum of up to, but not exceeding, $300.00 is to be appropriated from the City general fund fund balance to the change fund for the animal control office. The change fund custodian shall assure that their change fund and any accompanying receipts are reconciled on a daily basis.

C. Change Fund Procedures. The change fund custodian will abide by the written procedures for the appropriate and lawful administration of the change fund, as established by the finance director.

(Ord. 475 § 2, 2006; Ord. 467 §§ 1 – 3, 2006).

4.40.330 Affordable housing sales tax fund.

A. There is hereby established a special revenue fund, to be known as the “affordable housing sales tax fund,” into which shall be deposited all monies received from a portion of sales and use taxes otherwise required to be collected and paid to the Department of Revenue pursuant to RCW 82.14.540.

B. This fund has been established to receive that portion of sales and use tax credited back to the City for use in the acquisition, construction or rehabilitation of affordable housing or facilities providing supportive housing, and for the operations and maintenance costs of new units of affordable or supportive housing, and, if eligible, for providing rental assistance to tenants.

C. Any unexpended funds remaining in the affordable housing sales tax fund at the end of a budget period shall not be transferred to the general fund or otherwise lapse, but funds shall be carried forward from year to year until expended for a purpose set forth in subsection (B) of this section.

(Ord. 728 § 2, 2020).

4.40.340 Traffic impact fee fund.

A. Purpose. This fund is established to account for the receipt and disbursement of the traffic impact fees established by City Council pursuant to the Washington State Growth Management Act codified at Chapter 36.70A RCW and at RCW 82.02.050 to 82.02.100. Such expenditures include development of transportation facilities that constitute system improvements and may include the following items to the extent that they relate to a particular system improvement: facility planning, land acquisition, site improvements, necessary off-site improvements, facility construction, facility engineering and design work, facility permit fees, facility financing, grant matching funds, applicable mitigation costs, capital equipment pertaining to a particular system improvement, and any other capital costs related to a particular system improvement. Impact fees may also be used to recoup transportation facility improvement costs previously incurred by the City to the extent that new growth and development will be served by the previously acquired or constructed improvements resulting in such costs.

B. Revenue Sources. Traffic impact fees authorized by RCW 82.02.060, interest earnings, and other revenue that may be authorized by the City Council.

(Ord. 732 § 4, 2020).

4.40.350 Transportation benefit district fund.

A. Purpose. This fund is established to account for the receipt and disbursement of transportation benefit funds that are consistent with existing State, regional, and local transportation plans and necessitated by existing or reasonably foreseeable congestion levels authorized by RCW 35.21.225 and subject to the provisions of Chapter 36.73 RCW.

B. Revenue Sources. Transportation benefit funds, and other revenue that may be authorized by the City Council.

(Ord. 732 § 5, 2020).

4.40.360 Local revitalization financing fund.

A. Purpose. This fund is established to account for receipt and disbursement transactions associated with local revitalization financing.

B. Revenue Sources. Revenues received from the sale of local revitalization revenue bonds.

(Ord. 732 § 6, 2020).

4.40.370 Police/public safety fund.

A. Purpose. This fund is established to account for receipt and disbursement transactions associated with police services, court services, jail services, City Attorney’s office, crime prevention, animal control, code enforcement, and emergency management.

B. Revenue Sources. Revenues supporting this fund include property taxes, revenues identified by State statutes collected in support of public safety, fines and forfeitures, pet license fees, grants and other revenue that may be authorized by the City Council.

(Ord. 732 § 7, 2020).