HomeMy WebLinkAbout2012-005 ORDINANCE NO. 2012-005
AN ORDINANCE OF THE CITY OF ARLINGTON,WASHINGTON, AMENDING THE
PROVISIONS OF TITLE 3, REVENUE AND FINANCE TO ADOPT A NEW CHAPTER
3.90 SHORT TERM INTERFUND LOANS
WHEREAS, the City's revenues do not provide a steady income stream to the City, but
rather fluctuates throughout the budget year primarily from property taxes due in April and
October , and
WHEREAS, the needs of the City are such that present operating expenses may require
loans between various funds of the City to compensate for temporary revenue shortfalls, and
WHEREAS, such loans are within the statutory authority of the City Council to approve,
and
WHEREAS, the City Council deems it appropriate to provide an orderly process for such
loans by authorizing the Finance Director to manage such loan processes on a regular basis,
without regard to the City Council's meeting schedule in order to minimize interest expense and
to carefully tailor such loans and repayments to the revenue needs and expense obligations of the
City, and
WHEREAS, the City Council deems it appropriate to authorize the Finance Director to
administer an interfund loan program, subject to regular reporting to the City Council, on an "as
needed" basis to keep the different funds of the City solvent,
NOW THEREFORE, THE CITY COUNCIL OF THE CITY OF ARLINGTON DOES
HEREBY ORDAIN AS FOLLOWS:
TITLE 3
REVENUE AND FINANCE
Chapter 3.90
Short Term Interfund Loans Program.
Sections:
3.90.010 Interfund loans authorized
3.90.020 Report to the City Council
3.90.030 Repayment directed
3.90.010 Interfund loans authorized. The Finance Director is hereby authorized to administer an
interfund loan program. The Finance Director shall make interfund loans as needed to keep the
funds of the City solvent. In conjunction with interfund loans, the Finance Director shall prepare
a planned schedule of repayment of the loan principal plus applicable interest. The monthly
Ordinance No. 2012-005 1
interest rate will be the same monthly rate of interest paid by the Washington State Local
Government Investment Pool where the city has an account for short term interest earnings.
Interfund loans shall not exceed 6 months unless prior approval is obtained from the City
Council or a separate resolution is passed. The borrowing fund should be in a position over the
period of the loan to repay the entire loan and interest.
3.90.020 Report to the City Council, The Finance Director shall include in the monthly financial
reports to the City Council, the issuance of any such loans, the status of other such loans and any
repayments made on outstanding loans.
3.90.030 Repayment directed. The Finance Director is directed and authorized to repay such
loans, in whole or in part, when budgeted revenues are received sufficient to cover the projected
foreseeable needs of the borrowing fund.
Section 2. Effective Date. This ordinance, being an exercise of a power specifically
delegated to the City legislative body, is an administrative and legislative act not subject to
referendum and shall take effect five (5) days after passage and publication of an approved
summary thereof consisting of the title.
Section 3. Severability. If any provision, section, or part of this ordinance shall be
adjudged to be invalid or unconstitutional, such adjudication shall not affect the validity of the
ordinance as a whole or any section, provision or part thereof not adjudged invalid or
unconstitutional.
PASSED by the City Council and APPROVED by the Mayor this 5th day of March, 2012.
CITY OF ARLINGTON
Barbara Tolbert, Mayor
ATTEST:
Kristin Banfield, City Clerk
APPROVED AS TO FORM:
S ve . P ' e, City Attorney
Ordinance No. 2012-005 2
SUMMARY OF ORDINANCE ADOPTION
You are hereby notified that on March 5, 2012, the City Council of the City of Arlington,
Washington, did adopt Ordinance No. 2012-005 entitled,
"AN ORDINANCE OF THE CITY OF ARLINGTON,
WASHINGTON, AMENDING THE PROVISIONS OF TITLE 3,
REVENUE AND FINANCE TO ADOPT A NEW CHAPTER
3.90 SHORT TERM INTERFUND LOANS"
This ordinance is effective five days from its passage and publication.
The full text of the ordinance is available to interested persons and will be mailed upon
request.
Kristin anfield
City Clerk
City of Arlington
CERTIFICATION OF ORDINANCE
1, Kristin Banfield, being the duly appointed and acting Clerk of the City of Arlington,
Washington, a municipal corporation, do hereby certify that the following Ordinance #2012-004
was approved at the March 5, 2012 City Council meeting.
ORDINANCE #2012-005
"AN ORDINANCE OF THE CITY OF ARLINGTON,
WASHINGTON, AMENDING THE PROVISIONS OF TITLE 3,
REVENUE AND FINANCE TO ADOPT A NEW CHAPTER
3.90 SHORT TERM INTERFUND LOANS"
A true and correct copy of the original ordinance is attached.
Dated this 6th day of March, 2012.
Kristin field
City Clerk for the City of Arlington