Ordinance 2107ORDINANCE NO.
AN ORDINANCE OF THE CITY OF EDMONDS, WASHINGTON,
RELATING TO THE ESTABLISHMENT OF FUNDS AND THE
TRANSFER OF MONIES BETWEEN FUNDS IN THE MUNICIPAL
BUDGET AND CREATING A NEW FUND NO. 002 TO BE
ENTITLED "CUMULATIVE RESERVE FUND FOR GENERAL
FUND EXPENDITURES"; SETTING FORTH THE PURPOSES
THEREFOR; AND TRANSFERRING $200,000 FROM THE
LID GUARANTY FUND NO. 613 TO THE CUMULATIVE
RESERVE FUND FOR GENERAL FUND EXPENDITURES FUND
NO. 002.
WHEREAS, during the course of the City's fiscal year
expenditures generally exceed revenues for the first 6 months of
the year, and
WHEREAS, sound fiscal planning and fiscal management
require that the City have an operating cash reserve to cover
a portion of the City's expenditures until sufficient revenues
are received, and
WHEREAS, the City Council finds that it is necessary
to establish such a fund which shall be used solely to meet the
financial obligations of the City's General Fund when, during
the course of a year, expenditures exceed revenues received due
to the delays involved in the collection of said revenues, and
WHEREAS, at such time as revenues received exceed
expenditures such excess revenues shall be placed in the Cumula-
tive Reserve Fund for General Fund Expenditures, and
WHEREAS, the State legislature during 1979, and after
adoption by the City of its 1979 Budget, authorized cities to
transfer funds from the Local Improvement District Guarantee
ac
Fund to the General Fund under certain circumstances, and
WHEREAS, the City intends to transfer the $200,000
from the LID Guaranty Fund No. 613 to the newly created Cumulative
Reserve Fund for General Fund Expenditures Fund No. 002, and
WHEREAS, pursuant to RCW 35.54.095 the Finance Director
has certified that after said transfer, the City of Edmonds LID
Guaranty Fund No. 613 will have sufficient funds currently on hand
to meet all valid outstanding obligations of said Fund and all
other obligations of the Fund reasonably expected to be incurred
in the near future and that the net cash of said LID Guaranty
Fund is in an amount which is equal to or exceeds 10% of the
net outstanding obligations guaranteed by such Fund, now, therefore,
THE CITY COUNCIL OF THE CITY OF EDMONDS, WASHINGTON, DO
ORDAIN AS FOLLOWS:
Section 1. There is hereby created a special fund to
be entitled "Cumulative Reserve Fund for General Fund Expenditures
No. 002". The purpose of said fund is to provide an operating
reserve to meet the City's financial obligations of the General
Fund when expenditures exceed revenues received.
Section 2. The transfers from said Cumulative Reserve
Fund for General Fund Expenditures No. 002 shall be made to the
General Fund by the City Council by resolution. Each such resolu-
tion shall provide for and authorize the Finance Director to repay
the transfer at such time as collected revenues will permit the
same.
Section 3. The Finance Director is authorized to invest
and reinvest the balance of said Cumulative Reserve Fund for General
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Fund Expenditures No. 002, the proceeds of which shall be main-
tained in the Fund; provided, however, at such time as the balance
of said Fund exceeds $250,000, all such monies in excess of said
figure may be transferred by the City Council and appropriated
for expenditure without the necessity of reimbursement to this
cash reserve fund.
Provided further, the City Council, may by ordinance,
reduce the minimum balance to be maintained in this cash reserve
fund and appropriate such monies for expenditure as they shall so
direct.
Section 4. The sum of $200,000 is hereby transferred
from the LID Guaranty Fund No. 613 to the Cumulative Reserve Fund
for General Expenditures No. 002 to be used in the manner as pro-
vided hereinabove.
Section 5. The Finance Director is hereby authorized
and directed to take the necessary steps to effectuate the pro-
visions of this Ordinance.
Section 6. This Ordinance shall be in full force and
effect five (5) days after passage and publication by posting as
provided by law.
APPROVED:
MAYOR, H. H. HARRISON
ATTEST/AUTHENTICATED:
";:7-A 0 _-n4 I ' , A "_"" I
CITY CLERK, IRENE RNEY MORAN
APPROVED AS TO FORM:
OFFICE, HE CITY ATTORNEY:
BY L-IL, A
FILED�T/TH THE CITY CLERK: December 14, 1979
PASSED BY THE CITY COUNCIL: December 18, 1979
POSTED: December 19, 1979
EFFECTIVE DATE: December 24, 1979
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AFFIDAVIT OF POSTING ORDINANCE
STATE OF WASHINGTON )
) ss:
COUNTY OF SNOHOMISH )
IRENE VARNEY MORAN being first duly sworn
on oath deposes and says that she is over the age of eighteen
(18) years and is competent to testify as to the matter
stated herein.
On the 19
day of December , 197 9 , affiant
posted true and correct copies of the attached Ordinance No.
2107, passed by the City Council on the 18 day of
December , 1979 , at the three official posting places
for City notices which are the public bulletin boards at
the following locations:
Edmonds Civic Center
250 Fifth Avenue North
Edmonds, Washington 98020
Edmonds Public Library
Civic Center
250 Fifth Avenue North
Edmonds, Washington 98020
Edmond Branch of the
United States Post Office
201 Main Street
Edmonds, Washington 98020.
DATED this 19 day of December , 197 9.
SUBSCRIBED AND SWORN to before me this day of
�� 197TTT�.
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