“The Council has a long record of responsible stewardship of the public's money. Our sound financial policies have led the major credit rating agencies to award King County triple-A bond ratings—the highest possible,” said Councilmember Dow Constantine, chair of the Council’s Annual Budget Committee and prime sponsor of the legislation. “But these financial and debt policies have not been formally reviewed since 2000. This expert review panel will provide the advice we need to meet and exceed the public’s expectations for fiscal integrity and accountability.”

The Financial Policies Advisory Task Force will consist of five members who are experts in the industry, and who will be selected based upon their knowledge of government budgeting and financial policies. Members will review financial and debt policies previously adopted by the King County Council as well as informal policies put into practice by executive agencies. They will also examine best practices in financial planning and make recommendations to the Council in each of these areas.

Among the previous Council policies to be reviewed:

“We need to ensure that we enact and maintain strict financial and debt policies for all county funds so that we continue to get the lowest borrowing rates possible,” said Councilmember Jane Hague, chair of the Operating Budget Panel. “Our exceptional credit-worthiness saves the taxpayers money through exemplary bond ratings.”

“Financial markets respond favorably to sound budget policies and practices,” said Councilmember Bob Ferguson who chairs the Council’s Capital Budget Committee. “The Council’s action to create added financial review will provide the independent expertise that financial markets prefer and the transparency that citizens deserve.”

“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, which reduces interest costs,” said Kathy Lambert, vice-chair of the Annual Budget Committee. “Debt should be used only in those circumstances where the investment is necessary, and the circumstances of cost effectiveness and cash flow require multiyear financing.”

“The council strongly supports transparent and open government, and citizen involvement,” said Council Chair Larry Phillips. “The task force will provide an additional level of scrutiny of King County’s financial policies from independent experts. I look forward to their work yielding suggestions for enhanced stewardship of taxpayers’ money.”

Councilmembers will make nominations for members for the task force to the Council Chair by January 15, 2007. The Council Chair, in consultation with the chairs of the Council’s Operating and Capital Budget Committees, or their successors, shall appoint members and name a task force chair by January 29, 2007.

The task force will convene in the first quarter of 2007, and present a prioritized work program to the council by March 15, with a final report due to the council by August 20, 2007. Council staff will provide support to the task force.