ORD 2011-07 RELATING TO UTILITY FUNDSORDINANCE N0.2011-07
AN ORDINANCE of the City of Bainbridge Island, Washington, relating
to maintenance.. of utility funds; repealing and restating Section 3.44.010 of
the Bainbridge Island Municipal .Code ("BIMC"), amending BIMC
Section 3.45.010 and repealing BIMC Section 3.45.020; and authorizing
the refunding of all outstanding limited tax general obligation bonds that
are secured by a pledge of combined utility revenues.
WHEREAS, it is an important City objective to explore all options for providing
service to the City's utility customers in the most cost-effective and expedient manner,
including enabling the City to .proceed with the long-term financing of the nearly-
completed .upgrades to the Wastewater Treatment Plant; and
.WHEREAS, this objective is served by having the BIMC better reflect the City's
existing practice of maintaining each of the City's three utility systems as a separate
utility fund;
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF
BAINBRIDGE ISLAND, WASHINGTON, DOES ORDAIN AS FOLLOWS:
Section 1. BIMC Section 3.44.010 is hereby repealed and replaced with the following:
3.44.010 Separate Utilities.
The city shall maintain a separate utility fund for each city utility. The
funds shall be known as: the `Water Fund,' the `Sewer Fund,' and the
`Storm and Surface Water Management Fund'. Each such utility shall be
accounted for as a separate fund. ,
Section 2. BIMC Section 3.45.010 is hereby amended to read as follows:
3.45.010 Established. ~ ~ ~ ~ t
There shall be established within each utility fund maintained by the city,
a ~~ capital improvement fund to better identify and to provide
segregated accounting and control for expenditure of moneys identified
for the purpose of making capital improvements connected with each of
the. city's utilities, and as .contained ~e~~~~~Q ~~~~~'~ ~°N~+~'
,the capital facilities element of the
city's comprehensive plan ~ ^~ I ~ ~ „~ ~ ar ,a ~~ r~' any
Section 3. BIMC Section 3.45.020 is hereby repealed.
Section 4. The Finance Director is authorized and directed to establish a separate fund
for each utility.. Each such fund shall be a special fund held separate and apart from any
and all other funds of the City. All revenues and expenditures previously budgeted for
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and all amounts held by or for the water system shall be transferred to the water Fund; all
revenues and expenditures previously budgeted for- and all amounts held by or for the
sewer system shall be transferred to the Sewer Fund; and all revenues and expenditures
previously budgeted for and all amounts held by or for the storm and surface water
management system shall be transferred to the Storm.. and Surface -Water Management
Fund.
Section 5. In order to accomplish a change in covenants and effect the segregation of the
utility systems and to carry out the purposes of this ordinance, the City Council
authorizes the refunding of all outstanding limited tax general obligation bonds that are
secured by a pledge of combined utility revenues pursuant to the terms of such sale, to be
established as ,directed in Ordinance Nos. 2009-02 and 2009-07, without regard to any
savings that maybe generated by such refunding.
Section 6. This ordinance .shall take effect and be in force as of the date on which all of
the City's outstanding limited tax general obligation bonds that are secured by a pledge of
combined utility revenues are no longer deemed to be outstanding, but no earlier than
five (5) days following the passage and publication of this ordinance, as required by law.
PASSED BY THE CITY COUNCIL this 8th day of June, 2011.
APPROVED BY THE MAYOR this .8th day of June, 2011.
~-
irsten ytopoulos, Mayor
ATTEST/AUTHENTICATE:
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Rosalind D. Lassoff, City Clerk
FILED WITH THE. CITY CLERK: May 27, 2011
PASSED BY THE CITY COUNCIL: June 8,2011
PUBLISHED: June 10, 2011
EFFECTIVE DATE: June 15, 2011
ORDINANCE NUMBER: 2011-07
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