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ORD 91-48 INTERNAL SERVICES FUNDORDINANCE No. 91 — 4/9 AN ORDINANCE OF THE CITY OF BAINBRIDGE ISLAND ESTABLISHING AN INTERNAL SERVICE FUND TO BETTER ACCOUNT FOR THE COST AND USE OF EQUIPMENT (INCLUDING COMPUTERS). WHEREAS, it is the intent of the City of Bainbridge Island to account for the City's expenditures in a way that most closely matches the timing of the expenditures to their actual occurance and which further charges expenditures of the City to the Departments or other operating units of the City which properly incur those expenditures, and WHEREAS, governmental accounting does not provide for the depre- ciation of fixed assets except in enterprise funds (such as the City's Utility Fund or an internal service fund), now, therefore, THE CITY COUNCIL OF THE CITY OF BAINBRIDGE ISLAND, WASHINGTON, DO ORDAIN AS FOLLOWS : SECTION 1. There shall be established an Equipment and Automation Fund to assist the City's efforts to better match the timing of revenues and expenditures, to charge the appropriate operating units of the City for the costs incurred by the City on their behalf, and to provide funding for the replacement of capital assets when needed. Operation of this fund is intended to generate only a nominal out-of-pocket cost to the City. SECTION 2. All depreciable capitalized assets of the City now owned or hereafter acquired shall be transferred to either this fund or the Utility Fund, as appropriate. Charges by this fund to other funds of the City, as appropriate, shall be made to cover all expenditures charged against the Equipment and Automation Fund. SECTION 3. It is the intent of this ordinance that all appropriate accounting entries of the City made in 1992 and thereafter be subject to this ordinance. SECTION 4. The City's Finance Director is hereby authorized and directed to make the necessary and appropriate changes to the 1992 Budget as authorized by this ordinance. A copy of this ordinance shall be transmitted to the Division of Municipal Corporations in the Office of the State Auditor and to the Association of Washington Cities. SECTION 5. This ordinance shall take effect and be in force five days from and after its passage, approval, publication and posting as required by law. PASSED by the City Council this 30 th day of December, 1991. APPROVED by the Mayor this 30 th day of December, 1991. SAM J. RANATO, Mayor ATTEST/AUTHENTICATE: RALPH W. EELLS, Fina ce Directolz APPROVED AS TO FORM: ROD P. KASEGUMA, City Attorney FILED WITH THE CITY CLERK December 26, 1991 PASSED BY THE CITY COUNCIL December 30, 1991 PUBLISHED : January 8, 1992 POSTED : January 8, 1992 EFFECTIVE DATE : January 13, 1992 ORDINANCE 91 - 48