Title
Approval of an Ordinance related to Chapter 3.04 Funds of the Olympia Municipal Code
Recommended Action
Committee Recommendation:
Not referred to a committee.
City Manager Recommendation:
Move to approve the Ordinance amending Chapter 3.04 Funds of the Olympia Municipal Code.
Report
Issue:
Whether to approve changes to Olympia Municipal Code Chapter 3.04.
Staff Contact:
Kensey Wang, Accounting Manager, Finance, 360.753.8435
Presenter(s):
None - Consent Calendar item.
Background and Analysis:
The City has received several new revenue streams and new funds need to be created to properly reflect segregated monies and activities. The City has also ceased activities in some funds, necessitating their removal.
Opioid Settlement Fund
The City was party to a lawsuit that settled in 2022, when the City began to receive funds as a part of that settlement. Due to the external restrictions placed on these funds regarding their use, these funds should be properly segregated in a special revenue fund.
Water Infrastructure Improvement Grants Fund
The City passed Ordinance number 7414 in 2024 to distribute a percentage of the increase in utility rates to support affordable housing by reducing permit and development fees paid by developers for off-site water infrastructure improvements necessitated by affordable housing projects. These funds are considered special revenue that should be properly segregated in their own fund.
Sewer Infrastructure Improvement Grants Fund
The City passed Ordinance number 7414 in 2024 to distribute a percentage of the increase in utility rates to support affordable housing by reducing permit and development fees paid by developers for off-site sewer infrastructure improvements necessitated by affordable housing projects. These funds are considered special revenue that should be properly segregated in their own fund.
Fire Fleet Fund
Fire fleet-related activity had previously been accounted for in the General Fund but the fleet activity truly exists to serve Fire Department activities, rendering it an internal service fund in function. The change will more accurately account for these activities.
Funds to be Removed
The first fund being removed is the Municipal Court Trust. This fund was determined to not qualify as a fiduciary fund under GASB 84 and the activity is now properly accounted for in the general fund.
The second fund being removed is the Law Enforcement Records Management (LERMS) Fund. This fund was used when the City was the treasurer and recordkeeper for LERMS, an entity created by interlocal agreement. The treasury and recordkeeping function has been with the City of Tumwater since 2023.
Climate Analysis:
This agenda item is expected to result in no impact to greenhouse gas emissions.
Equity Analysis:
One of the goals of the City’s accounting processes is to ensure that city services are provided equitably to our residents and business communities, as well as the greater Olympia community. This agenda item is not expected to further impact known disparities in our community.
Neighborhood/Community Interests (if known):
Members of the community may have an interest in this agenda item as it deals with City finances and fiscal governance.
Financial Impact:
There is no financial impact resulting from this Ordinance.
Options:
1. Move to approve the proposed Resolution to amend Chapter 3.04 Funds of the Olympia Municipal Code
2. Do not approve the proposed Resolution to amend Chapter 3.04 Funds of the Olympia Municipal Code
3. Reschedule agenda item to another meeting.
Attachments:
Ordinance