ORD 2004-20 FUND ACCOUNTING
ORDINANCE NO. 2004-20
AN ORDINANCE OF THE CITY OF BAINBRIDGE ISLAND,
WASHINGTON, RELATING TO THE CITY'S FUND
ACCOUNTING; REPEALING ORDINANCE 68-03; AND
AMENDING CHHAPTER 3.24 OF THE BAINBRIDGE ISLAND
MUNICIPAL CODE.
WHER~AS, the City of Bainbridge Island has long maintained a reserve for
capital equipment purchases in its general fund; and
WHER~AS, that reserve is not structured in a manner consistent with RCW
35A.37.01O and RCW 35.21.088, which require the City of Bainbridge Island to create
and maintain an equipment rental fund; and
WHER~AS, the City of Bainbridge Island desires to fully comply with its legal
requirements; now, therefore
THE CITY COUNCIL OF THE CITY OF BAINBRIDGE ISLAND,
WASHINGTON, DO ORDAIN AS FOLLOWS:
SECTION 1. Ordinance 68-03 is repealed.
SECTION 2 _ Chapter 3.24 of the Bainbridge Island Municipal Code shall be
renamed "Equipment Rental Fund" and shall be amended to read as follows:
Chapter 3.24
EQUIPMENT RENTAL FUND
Sections:
3.24.010 Created and established.
3.24.020 Administration.
3.24.030 Transfer of departments.
3.24.040 Placement of money.
3.24.050 Use of the fund.
3.24.060 Disposition of sale proceeds and purchases.
3.24.070 Rental charges - Schedule.
3.24.080 Accounts and records.
3.24.100 Manner of withdrawals and expenditures.
3.24.110 Retention of monies.
3.24.010 Created and established.
There is hereby created and established a special fund to be known and designated as
the "equipment rental fund", to be used as a revolving fund to be expended for salaries,
wages, and operations required for the repair, replacement, purchase, and operation of
equipment, and for the purchase of equipment, materials and supplies to be used in the
administration and operation of the fund.
3.24.020 Administration.
The equipment rental fund shall be administered by the director of finance and
administrative services under the direction of the mayor.
3.24.030 Transfer of departments.
All capital equipment of all offices and departments of the City of Bainbridge Island
shall be transferred to the equipment rental fund, without charge.
3.24.040 Placement of money.
Money may be placed in the fund from time to time by the Bainbridge Island city
council.
3.24.050 Use of the fund.
The City of Bainbridge Island shall purchase and sell all capital equipment by the use
of such fund, subject to the laws governing the purchase and sale of property. Such
equipment shall be rented for the use of the various offices and departments of the city
and may be rented by the city to other governmental agencies.
3.24.060 Disposition of sale proceeds and purchases.
The proceeds received by the city from the sale or rental of such equipment shall be
placed in the equipment rental fund, and the purchase price of any such equipment or
rental payments made by the city shall be made from monies available in the fund.
3.24.070 Rental charges - Schedule.
There shall be paid monthly into the equipment rental fund out of the monies available
to the department using any such equipment, which has not been purchased by that
department for its own use and out of its own funds, reasonable rental charges fixed by
the city council of the City of Bainbridge Island by approval of a schedule submitted at
regular meetings of the city council by the administrative services director, which
schedule shall be sufficient to cover the maintenance, operation and replacement of said
equipment as set forth in BIMC 3.24.010 herein, and which shall be revised from time to
time to maintain the schedule so as to reflect the current and foreseeable needs of the
equipment rental fund.
3.24.080 Accounts and records.
There shall be kept, by those directed by the director of finance and administrative
services, such books, accounts and records as are necessary to control and report the
financial operations of the equipment rental fund, and shall further subdivide the cash
account thereof into two separately designated accounts as follows:
A. Account "A", which shall be the "current operating account" into which shall be
placed those portions of the charges made to the various departments or offices of the city
of Bainbridge Island, in accordance with the provisions of BIMC 3.24.070 hereof, which
are specifically billed to provide sufficient monies to pay the salaries and wages,
materials, overhead and other costs necessary to operate and maintain all property rented
thereto. There shall also be placed into Account "A" monies which may from time to
time be specifically available thereto by action of the city council.
B. Accaunt "B", which shall be the "equipment reserve accaunt" inta which shall be
placed thase portians af the charges made ta the variaus departments ar affices af the
city, in accardance with the provisians af BIMC 3.24.070 thereaf, which are specifically
billed ta provide sufficient manies, having first taken inta cansideratian the necessary
aperating and maintenance casts billed under the preceding subsectian A, ta pay the casts
af purchasing new equipment and replacing used equipment as required ta carry aut the
purpase af the equipment rental fund. There shall alsa be placed in the Accaunt "B"
manies which are derived from the direct sale af any equipment Oil' ather capital assets af
the fund and any manies made specifically available thereta by actian afthe city cauncil.
3.24.100 Manner of withdrawals and expenditures.
Any withdrawals ar expenditures from the equipment rental fund shall be made anly in
the fallawing manner:
A. Expenditures from Accaunt "A" shall be made anly upan duly approved payrolls
and vauchers af the City af Bainbridge Island far the purpases hereinbefare ascribed ta
said accaunt.
B. Expenditures fram Accaunt "B" shall be made anly upan duly approved vauchers
af the city far the purpases hereinbefare ascribed ta said accaunt.
3.24.110 Retention of monies.
All manies in the equipment rental fund shall be retained there from year ta year and
shall nat be transferred ta any ather fund ar expended far any ather purpase.
SECTION 3. The balance af all funds in the City's Reserve far Capital Equipment shall
be transferred ta the Equipment Rental Fund.
SECTION 4. This Ordinance shall take effect and be in farce on and after January 1,
2005, which date is more than five days after its passage, approval and publication as
required by law.
PASSED by the City Council this 22nd day af September, 2004.
APPROVED
by the Mayar this 23rd d'1af Septembe..:.: 2004.
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J..dik if.ph-~ fl("'k~/~a'1.~
Darlene Kardanawy, Mayar
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A T'rEST / AUTH~~TJGA T~:
.~^-'. J /~-7X~v
Susan P. Kasper, City Clerk
FILED WITH THE CITY CLERK:
PASSED BY THE CITY COUNCIL:
PUBLISHED:
EFFECTIVE DATE:
ORDINANCE NO. 2004-20
July 30, 2004
September 22, 2004
September 29,2004
October 4, 2004