The text
Footnotes:
--- (11) --- Charter reference— Finance department, art. 6; financial provisions, § 6-2-1 et seq.; budget, §§ 6-2-2, 6-2-3, 6-2-6; annual audit, § 6-2-7; debt limitation, § 6-2-8.
State Law reference— Public finance, G.L. 1956, title 35; authority to borrow money must be by general law, G.L. 1956, § 5, art. XXXVIII, R.I. Const.; fiscal year, G.L. 1956, § 35-2-2.
DIVISION 1. - GENERALLY#
Secs. 70-152—70-155. - Reserved.#
DIVISION 2. - BEACH FUND#
Sec. 70-156. - Created.#
An enterprise fund entitled, "The Municipal Beach Fund" is hereby created.
(Code 1986, § 18-111)
Sec. 70-157. - Purpose.#
The beach fund is created to account for the financing of a self-supporting activity, namely the town beaches, which renders services on a user charge basis to the general public.
(Code 1986, § 18-112)
Sec. 70-158. - Administration.#
Beach activities shall be administered by the department of parks and recreation.
(Code 1986, § 18-113)
Cross reference— Administration, ch. 2.
Sec. 70-159. - Budgets.#
A comprehensive annual budget shall be prepared in the same manner as nonenterprise operations or nonproprietary operations of the town.
(Code 1986, § 18-114)
Sec. 70-160. - Accounting.#
Accounting for the beach fund shall be on an accrual basis. All fixed assets acquired, whether purchased intact, constructed on a contractual basis or built by the force account method should be recorded at cost. This cost shall be charged against revenues through annual depreciation charges over the estimated useful life of the assets.
(Code 1986, § 18-115)
Sec. 70-161. - Revenues.#
Revenues may be from the issuance of bonds, contributions of other governmental units, general funds of the town and customers. User rates may be adjusted from time to time by resolution of the town council.
(Code 1986, § 18-116)
Sec. 70-162. - Reporting.#
The fiscal year shall coincide with the town fiscal year. Annual financial statements shall conform to municipal finance officers association guidelines, and the fund shall be audited as part of the regular town audit.
(Code 1986, § 18-117)
Secs. 70-163—70-175. - Reserved.#
DIVISION 3. - CAPITAL PROJECTS FUND#
Sec. 70-176. - Created.#
There is hereby created a fund known as "The Capital Projects Fund."
(Code 1986, § 18-131)
Sec. 70-177. - Purpose.#
The capital projects fund shall account for all resources used for the acquisition of capital facilities and equipment by the town except those financed by special assessment, enterprise funds, and as stated in section 70-178.
(Code 1986, § 18-132)
Sec. 70-178. - Individual projects.#
The capital projects fund shall be used to account for individual capital projects which do not require a separate fund by ordinance or regulation of the federal government or other considerations. The controlling criterion in determining whether a series of related capital projects should be accounted for in one or several separate funds is the debt authorization and type of financing involved and shall be determined by the town treasurer. Special separate capital projects funds shall be entitled with the name of the individual project.
(Code 1986, § 18-133)
Sec. 70-179. - Capital budget.#
When the annual town budget is adopted, the capital requirements incorporated therein from the capital budget shall be authorizations to incur obligations and to make expenditures on a project basis. Transfers of an appropriation and money will be made on a periodic basis from the general funds to the capital projects fund by the town treasurer.
(Code 1986, § 18-134)
Sec. 70-180. - Investment.#
Investment of idle money may be made by the town treasurer in conformity with state law and policy prescribed by the Charter and the town council.
(Code 1986, § 18-135)
Secs. 70-181—70-195. - Reserved.#
DIVISION 4. - CODE ENFORCEMENT REVOLVING FUND#
Sec. 70-196. - Title and creation.#
There is hereby created a special revenue fund entitled, "Code Enforcement Revolving Fund."
(Code 1986, § 18-151)
Sec. 70-197. - Purpose.#
The purpose of the code enforcement revolving fund is to support the cost of repairs and other corrective action or demolition made by the enforcing officer pursuant to section 34-98 of this Code, the town minimum housing standards ordinance; G.L. 1956, § 44-24.3-19 of the State Housing Maintenance and Occupancy Code; section 125.0 of G.L. 1956, § 23-27.3-1, State Building Code; and G.L. 1956, § 23-28.5-2, Rhode Island Fire Safety Code.
(Code 1986, § 18-152)
Sec. 70-198. - Revenues.#
Revenues for the code enforcement revolving fund shall come from the following: (1)
All civil penalties collected for violations of the codes;
(2)
All license fees collected pursuant to the codes;
(3)
All judgments collected in actions to recover the costs of repair and other corrective action and demolition, pursuant to the codes;
(4)
Such other revenues as the town may from time to time authorize to be paid into this fund;
(5)
All donations and grants designed to promote the purposes of the housing, building or fire safety codes from public or private sources;
(6)
Rent withheld from a landlord to enforce repair, alteration or improvement of a dwelling.
(Code 1986, § 18-153)
Sec. 70-199. - Accounting.#
The code enforcement revolving fund shall be audited in the same manner as other town funds. It shall have a separate checking account and the town treasurer shall produce monthly financial statements including financial position and activity to date. It shall be accounted for under GAAFR guidelines or a state uniform accounting system, whichever is in effect.
(Code 1986, § 18-154)
Sec. 70-200. - Administration.#
Expenditures of monies from the code enforcement revolving fund shall be made in the same manner as expenditures in other funds as provided in the Charter and ordinances, except that approval of the director of public safety and the enforcing officer is required. An annual budget request for funds to carry out the purpose of applicable laws may be made by the director of public safety. No monies shall be appropriated for use in this fund unless it is determined there will be insufficient funds to carry out the requirements of the laws.
(Code 1986, § 18-155)
Cross reference— Administration, ch. 2.
Secs. 70-201—70-215. - Reserved.#
DIVISION 5. - DEBT SERVICE FUND#
Sec. 70-216. - Created; purpose.#
To account for the payment of interest and principal on longterm debt is recognized as a good accounting practice. The debt service fund, which is hereby established, shall account for general obligation debt other than that payable from special assessments and debt issued for and serviced primarily by a governmental enterprise. This includes a sinking fund bond, serial bonds and notes and time warrants having a maturity more than one year after the date of issue.
(Code 1986, § 18-191)
Sec. 70-217. - Operation.#
The treasurer shall annually request in the budget an appropriation which, with interest earnings on a compound basis, will provide the total amount of the debt by its maturity date. If the debt service fund balance exceeds actuarial requirements on any given statement date, the excess shall be carried forward without downward adjustment until the final addition to the fund is made.
(Code 1986, § 18-192)
Sec. 70-218. - Investments.#
Timely investment of the debt service funds shall be made by the treasurer in appropriate securities authorized by law.
(Code 1986, § 18-193)
Sec. 70-219. - Services.#
Services provided by a fiscal agent constitute and additional expense which must be provided and accounted for in the debt service fund.
(Code 1986, § 18-194)
Sec. 70-220. - Revenues.#
The debt service fund is to be serviced by the first revenues accruing in the treasury. The fund shall receive its revenues as transfers from the general fund.
(Code 1986, § 18-195)
Sec. 70-221. - Statements.#
The debt service fund shall be audited as part of the town audit as provided in the Charter, § 6-2-7.
(Code 1986, § 18-196)
Secs. 70-222—70-235. - Reserved.#
DIVISION 6. - RETAINED CLAIMS FUND#
Footnotes:
--- (12) --- State Law reference— Self-insuring fund, G.L. 1956, § 45-41-1 et seq.
Sec. 70-236. - Created; title.#
An intragovernmental service fund entitled, "The Retained Claims Fund" is hereby created.
(Code 1986, § 18-211)
Sec. 70-237. - Purpose.#
The retained claims fund shall be used for the following purposes: (1)
Self-insurance reserve for exposures not otherwise covered by commercial insurance;
(2)
Payment of large deductibles where exposure is covered by insurance but the deductible is not budgeted in the normal annual budgets;
(3)
To serve as a vehicle for cumulative funding in years with relatively few losses;
(4)
To serve as a retained claims fund for payment of losses if and when they occur;
(5)
To centrally service town departments and funds for the purpose set forth.
(Code 1986, § 18-212)
Sec. 70-238. - Accountability.#
(a)
Accounts in the retained claims fund shall be accounted for and audited in the same manner as other funds.
(b)
The source of funds in the retained claims fund shall be contributions from other funds in amounts sufficient to cover estimated cost of service. Reserves will be held for proper administrative units.
(Code 1986, § 18-213)
Secs. 70-239—70-250. - Reserved.#
DIVISION 7. - RECREATION FUND#
Sec. 70-251. - Title and creation.#
There shall be an enterprise fund entitled, "Recreation Fund."
(Code 1986, § 18-171)
Sec. 70-252. - Purpose.#
The recreation fund shall be used to receive and deposit monies contributed by customers, and to expend monies for the purpose of operating a variety of self-supporting type recreation, not including the town beach.
(Code 1986, § 18-172)
Sec. 70-253. - Budgets.#
An annual budgetary estimate of revenues and expenditures setting forth the plan of operations and capital outlay for the town's fiscal year shall be prepared by the director of parks and recreation and submitted to the town manager. User charges as admission schedules shall be reviewed annually by the director and recommendations for adjustments shall be made to the town council. The director, through the established town purchasing procedures, shall have authority to expend monies only for those items or programs for which a budgetary appropriation is made by the town council.
(Code 1986, § 18-173)
Sec. 70-254. - Fund relationships.#
All services rendered by the recreation fund shall be billed at predetermined rates, and all services received by the fund from other funds will be paid for on the same basis that other users are charged, including payments in lieu of taxes to the general fund.
(Code 1986, § 18-174)
Sec. 70-255. - Contributions from other funds.#
When contributions of capital from any source are received, the amount of each or value of property contributed to the recreation fund shall be recorded in an appropriately captioned contributions equity account.
(Code 1986, § 18-175)
Sec. 70-256. - Fixed assets.#
All fixed assets except land owned by the town acquired by the recreation fund shall be recorded at cost, and this cost charged against current revenues through annual depreciation charges over the estimated useful life of the asset.
(Code 1986, § 18-176)
Sec. 70-257. - Reporting.#
The treasurer shall report at least annually on the financial condition of the recreation fund, including receipts and disbursements. The fund shall be audited in the same manner as other town funds. Accounting shall be in conformity with government accounting auditors financial review guidelines for enterprise funds, as published by the government finance officers association, unless otherwise modified by a state uniform accounting system.
(Code 1986, § 18-177)
Sec. 70-258. - Relationship of advisory board.#
The recreation advisory board shall review proposals and make recommendations on initiation or changes of programs, capital budgets and user charges. The board shall prepare annually a five-year capital improvement program which shall project estimated costs and related revenues, and submit the program to the town council at least five months prior to the end of the fiscal year.
(Code 1986, § 18-178)
Secs. 70-259—70-270. - Reserved.#
DIVISION 8. - TRUST AND AGENCY FUND#
Sec. 70-271. - Created.#
There is created a fund entitled, "Trust and Agency Fund."
Sec. 70-272. - Purpose.#
The purpose of the trust and agency fund is to account for assets held by the town in a fiduciary capacity for individuals, government entities and others. Trust funds are operated by carrying out specific terms of trust indentures, statutes, ordinances, grant requirements or other governing regulations. Agency funds account for assets held by the town as an agent for individuals, organizations or other governmental units.
Secs. 70-273—70-279. - Reserved.#
DIVISION 9. - FINANCE COMMITTEE#
Sec. 70-280. - Establishment; appointment; composition; charge.#
(a)
The town council hereby creates a five-member finance advisory committee to:
(1)
Review, once completed, the comprehensive annual financial report prepared by the town's independent auditors and any recommendations contained therein; and
(2)
Assist the town council and school committee in their oversight of:
a.
The financial statements and system of internal controls; and
b.
The town's compliance with legal and regulatory requirements.
(b)
The finance committee shall be made up of citizens of the town who are appointed for four-year staggered terms. One of the initial members shall be appointed for a two-year term, two of the initial members shall be appointed for a three-year term, and two of the initial members shall be appointed for a four-year term. There shall also be an alternate member who shall be appointed for a two-year term. Members of the committee shall be versed in understanding financial statements and have general business knowledge. It is also recommended that, to the extent available, at least one member should have an accounting background. The town's finance director and finance department shall provide administrative support to the finance committee.
(c)
The finance committee shall review their charge annually, reassess the adequacy of the charge, and recommend any proposed changes to the town council. The committee shall also consider any other changes that may be necessary as a result of any new laws, policies, regulations, or accounting or auditing standards that are applicable to the town.
(Ch. 935, § 1, 9-20-2010)
Sec. 70-281. - Meetings; duties.#
The finance committee shall meet at least quarterly and at such additional times as may be necessary. The committee may request that members of the town and school departments management or others attend the meetings to provide pertinent information as necessary. The finance committee shall meet, at least annually, with the town manager, the superintendent of schools, the town council, the school committee, and the independent auditor to discuss results of their meetings or discuss any other matters that the committee or any of the individuals named herein believe should be discussed. The town manager and superintendent of schools shall cooperate fully and support the finance committee in this role. The finance committee shall have the following duties: (1)
The finance committee may review with the town manager and the school superintendent the financial policies and procedures of both the town and the school department and may make recommendations for changes and improvements.
(2)
The finance committee shall meet with the town's independent auditor prior to the release of the comprehensive annual financial report; however, the meeting shall not be required to take place until such time the management meeting has been held with the town manager and school superintendent.
(3)
The finance committee may review with management and the independent auditors about any significant risk or exposures facing the town and the school department and review the steps with management has taken or proposes to take to minimize such risks and periodically review compliance with such steps.
(4)
The finance committee may review, with the town manager and finance director, financial statements, balance sheets, monthly expenditure and revenue reports, and comparisons of expenditures to budget for each department. The finance committee shall issue, at least quarterly, a report to the town council regarding these reviews and shall identify any issues, concerns, or recommendations they have as a result of the reviews.
(5)
The town manager and school superintendent shall report actions taken to remedy all significant deficiencies and material weaknesses identified by the auditor.
(6)
The finance committee shall review the town's credit ratings from the various rating agencies, the factors used to establish these ratings, and recommend steps that the town and school department may take to improve the credit ratings.
(7)
The finance committee shall review and make recommendations for any changes necessary to the town's debt policy.
(8)
The finance committee shall review the town and school department's procurement policies and make recommendations for any changes or improvements that may be necessary as a result of their review. The finance committee shall also periodically review the town's and the school department's adherence to state and local procurement and bidding processes and report any inconsistencies to the town council and school committee.
(9)
The finance committee shall perform such other duties as the town council shall deem appropriate.
(Ch. 935, § 1, 9-20-2010)