Financial experts brought together by the Metropolitan King County Council will begin their review of the county’s financial and debt policies, including policies that call for maintaining adequate reserves and the prudent issuance of debt. The Financial Policies Advisory Task Force will then recommend prudent policies to help ensure low interest rates for the County and safeguard taxpayers against unnecessary taxes.

The King County Council adopted legislation in November 2006 creating a five-member expert panel consisting of industry leaders in government budgeting and financial policies. The task force is reviewing financial and debt policies that have been adopted by the County Council, as well as the informal policies of executive agencies, and will make recommendations to the council based on best practices in the industry and in government.

“This is a good government initiative that increases our careful stewardship of the public’s money,” said Councilmember Bob Ferguson, chair of the Operating Budget, Fiscal Management and Mental Health Committee and a sponsor of the legislation, which passed the council by a unanimous vote. “The panel will bring an outside, expert perspective to the job of reviewing King County’s financial and debt policies.”

“We have historically sought ways for acquiring input from citizens with unique expertise on issue we're studying,” said Operating Budget Vice-Chair Jane Hague. “This is another opportunity to involve citizens on issues shaping our region.”

“This expert panel will measure how well our fiscal policies work together,” said Dow Constantine, chair of the Council’s Capital Budget Committee and prime sponsor of the legislation creating the panel. “King County taxpayers will benefit greatly from this professional financial review and guidance.”

“The budget of the county is an allocation of the people’s money, so ideas and input from a variety of sources are vital to making sure their needs are being met,” said Councilmember Kathy Lambert, Capital Budget Committee Vice-Chair. “The county needs to ensure that its budget policies provide for the lifestyle and livability that make communities safe, sustainable and full of opportunities for enhancing the quality of life.”

Among the previous Council policies the panel will review:

• Motion 5888 in December 1983 created a number of financial policies including a requirement for maintenance of minimum levels of fund balance in the county's current expense fund,

• Motion 7020 in November 1987 dedicated a portion of additional sales tax revenues to the creation of a sales tax reserve to be used for financial emergencies,

• Motion 8446 in October 1991 reaffirmed the Council’s intent that the sales tax reserves only be used in financial emergencies, and

• Motion 11196 in July 2000, which enacted the King County General Fund Debt Policy, outlined practices for the issuance and management of debt, and required biannual review of those enacted policies.

The members of the panel are:

• Deborah Broughton, former CAO of Kitsap County and Seattle Public Utilities
• Dwight Dively, Finance Director, City of Seattle
• Jim Hattori, former financial advisor to King County
• Peter Moy, Consultant, FCS Group
• Hugh Spitzer, Attorney, Foster Pepper PLLC

The legislation that created the task force sets a deadline of August 20, 2007 for the panel to give its final report to the King County Council.