HomeMy WebLinkAbout4248oRDTNANCE No. L{ Lr{g
AN ORDINANCE of the City Council of the
City of Kent, Washington, authorizing interfund
loans of municipal moníes to comply with RCW
43.09.21O and providing for accounting procedures
when interfund loans are made.
RECITALS
A. Rather than íssuing outside debt to meet short-term cash flow
needs or to fund certain capital improvements, the city may issue interfund
loans in accordance with RCW 43.09.zLO and the city's finance policies.
B. The city's finance department is charged with ensuring
compliance with all debt management policy requirements and protecting
the city's financial integrity.
C. This ordinance permits the finance director and the mayor to
authorize short-term interfund loans without council approval in
accordance with the city's finance policies.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF KENT,
WASHINGTON, DOES HEREBY ORDAIN AS FOLLOWS:
ORDINANCE
SECTION 7, - Amendment. Section 3.40.040 of the Kent City
Code, entitled "Interfund loans," is amended as follows:
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Re: Interfund Loans
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Sec. 3.4O.O4O. Interfund loans.
A. Authorization. The city council does hereby authorize the finance
director, or his designee, to make interfund loans of those municipal
monies which are otherwise legally available for investment purpos€s7
where sueh loans would be neeessary to ensure eomplianee with the
grevisiæ.
B. Procedures. The following procedures shall be used for the
establishment and accounting of all interfund loans made pursuant to this
section:
1. The eity eouneil by ordinanee or resolution shall approve all
+
*e-len¿+ng+*ñd' The finance director has the authority to approve short-
term interfund loans for a period not to exceed three (3) calendar months.
The Mayor has the authority to approve loans for a period not to exceed
twelve (12) calendar months. Interfund loans made for a period
exceeding one (1) year must be approved by the council through
ordinance or resolution.
2 ln{.arfrrn¿.1 hnrra¡^rina .^ríll haar i ci hrcarl r rñ^n rf larct fha
nrevailino local Governmenf Tnvecfment Pnnl rate Interest shaHwill be
charged in all cases unless
a. The borrowing fund has no
revenue other than the lending fund;
independent source of
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b. The borrowing fund is normally funded by the lending
fund; or
c. The lending fund is the general fund, which, being
unrestricted, can loan interest free, except to a proprietary fund.
3.
i
i
of an interfund loan will be permissible only after the finance director has
conducted an analysis of the loaning fund which indicates that excess
funds are available and the use of the funds will not impact the loaning
fund's current operations or constitute a permanent diversion of funds.
three (3) years; exeept for those funds whieh are legally permitted to
45. Only that portion of a given fund which, in the prudent
management of municipal finances as determined by the finance director,
is clearly inactive or in excess of current needs may be loaned to other
municipal funds or invested.
56. Appropriate accounting records shall be maintained to reflect
the balances of loans payable and receivable in every fund affected by
such transactions.
SECTION 2, * Severability. If any one or more section, subsection,
or sentence of this ordinance is held to be unconstitutional or invalid, such
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decision shall not affect the validity of the remaining portion of this
ordinance and the same shall remain in full force and effect.
SECTION 3. - Corrections by City Clerk or Code Reviser. Upon
approval of the city attorney, the city clerk and the code reviser are
authorized to make necessary corrections to this ordinance, including the
correction of clerical errors; ordinance, section, or subsection numbering;
or references to other local, state, or federal laws, codes, rules, or
regulations.
SECTION 4, - Effective Date. This ordinance shall take effect and
be in force thirty (30) days from and after its passage, as provided by law.
a\
ATTEST:
KIMBERLEY MOTO,
APPROVED AS TO FORM:
M BRU
rs ttt€t$l MAYOR îtrt
Amend KCC 3.4O.O4O -
Re: Interfund Loans
K
I ATTORNEY
4
PASSED, Jf day of
APPROVE o: JÐ day of
PUBLISHE o, J1 day of
,lr, rc-Q
-hJ^'-A
20L7.
20t7.
20t7.
I hereby certify that th¡s is a true copy of Ordinance ruo, {ZV8
passed by the City Council of the City of Kent, Washington, and approved
by the Mayor of the City of Kent as hereon indicated.
EAL)
KIMBERLEY OTO, CITY RK
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