HomeMy WebLinkAbout2421ORDINANCE NO. ,ELI 2,1
AN ORDINANCE of the City of Port Angeles
establishing a deferred compensation
agency fund.
WHEREAS, the City of Port Angeles has adopted a deferred
compensation plan under the provisions of Internal Revenue Code
Section 457; and
WHEREAS, Statement #2 of the Governmental Accounting
Standards Board requires the establishment of a separate agency
fund to account for such programs for years ending on or after
December 31, 1986; NOW THEREFORE,
BE IT ORDAINED by the City Council of the City of Port
Angeles as follows:
Section 1. There is hereby established in the City
Treasury a fund for the fiscal administration and accounting
of the City's deferred compensation plan. Said fund shall be
entitled "Deferred Compensation Fund ".
Section 2. The Director of Finance and Administrative
Services is charged with the administration of the fund created
in Section 1 above.
Section 3. This ordinance shall take effect as provided
by law.
PASSED by the City Council of the City of Port Angeles
at a regular meeting of said Council held on the
of D l2.4an , 1986.
ATTEST: /�,1v, •
111 1.
64_2,41,
Sherri L. Anderson, City Clerk d4
APP ID A51iC4 FO
Craig D. Knutson, City Attorney
PUBLISHED: 'bpeoyy 04f (I I�tsC
,
M A Y O R
day
MEMORANDUM
November 26, 1986
TO: Manager Flodstrom, Mayor Whidden and Council Membe s
FROM: Duane Wolfe, Director of Finance & Admin. Svca,(1 i
RE: Ordinance: Deferred Compensation Fund Y
ISSUE: Shall the Council adopt the attached ordinance establishing
a deferred compensation fund?
BACKGROUND & ANALYSIS: The City has previously allowed employees to
partake in a deferred compensation plan administered by the Interna-
tional City Manager's Association (ICMA). Under Internal Revenue
Service regulations, the money transferred to the ICMA Deferred Comp
Plan is the property of the City until it is paid to employees. This
year the Governmental Accounting Standards Board (the national policy
setting board for governmental accounting), issued Statement No. 2
which requires that monies placed with ICMA be recorded on the City's
books in a separate agency fund. The provisions of the new statement
are effective for financial statements for periods ending on December
31, 1986. Accordingly, the City needs to establish this fund prior
to year -end so it can be appropriately recorded in the City's financial
statements. State law requires that new funds be established by an
ordinance of the Council.
RECOMMENDATION: We recommend Council adopt the attached ordinance
establishing a deferred compensation fund for the City.
RDW:ch
Attachment