Drafter
Clerk 11/9/2006
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A MOTION creating the King County financial policies advisory task force.
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WHEREAS, the metropolitan King County council has a long history of responsibly stewarding the public's money very seriously, and
WHEREAS, the council passed Motion 5888 in December 1983, which created a number of financial policies including a requirement for maintenance of minimum levels of fund balance in the county's current expense fund, and
WHEREAS, the council passed Motion 7020 in November 1987, which dedicated a portion of additional sales tax revenues to the creation of a sales tax reserve to be used for financial emergencies, and
WHEREAS, the council passed Motion 8352 in July 1991, which reaffirmed its intent that the sales tax reserve be used for financial emergencies, and
WHEREAS, the executive's proposed financial plan for 1992 proposed spending the sales tax reserve funds, and
WHEREAS, in response, the council passed Motion 8446 in October 1991, once again affirming its intent that the sales tax reserves only be used in financial emergencies, and
WHEREAS, on July 5, 2000, the council adopted Motion 11196 enacting the King County General Fund Debt Policy, outlining practices for the issuance and management of debt and requiring biannual review of those enacted policies, and
WHEREAS, the county executive has not convened the board to review these debt policies, and
WHEREAS, these sound financial policies have led the major credit rating agencies to award the county's limited tax obligation debt with triple A ratings, and
WHEREAS, these financial and debt policies have not been formally reviewed since 2000, and
WHEREAS, the council seeks to enact and maintain standard and rational financial and debt policies for all funds that continue to ensure the lowest borrowing rates possible resulting from exceptional credit-worthiness through exemplary bond ratings, and
WHEREAS, the council strongly supports transparent and open government, and citizen involvement, and
WHEREAS, the county's general policy is that "pay-as-you-go" funding is the preferred method of financing for the county's capital improvement programs, and
WHEREAS, debt should be used in those circumstances where the investment is necessary and cost effectiveness and cash flow circumstances require multiyear financing;
NOW, THEREFORE, BE IT MOVED by the Council of King County:
A. A King County financial policies advisory task force is hereby created.
1. The metropolitan King County council shall appoint a five member advisory panel to review the financial and debt policies of King County, in a priority order to be set through a work program. Members shall be experts in the industry and shall be selected based upon their knowledge of government budgeting and financial policies.
2. The task force shall review financial and debt policies previously adopted by the metropolitan King County council as well as informal policies put into practice by executive agencies; examine best practices in financial planning and make recommendations to the council in each of these areas.
B. Nominations for appointments shall be provided to the council chair by councilmembers by January 15, 2007. The chair of the council, in consultation with the chairs of the operating and capital budget committees, or their successors, shall appoint members, including a chair, by January 29, 2007.
C. The task force shall convene in the first quarter of 2007, and present a prioritized work program to the council by March 15, 2007, with a final report due to the council by August 20, 2007. Fifteen copies of these reports shall be filed with the clerk of the council for distribution to all councilmembers and budget committee staff.
D. Staff to the task force shall be provided by the metropolitan King County council.