Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Debt Policy topic
No spam. Unsubscribe anytime.
Board briefed on draft financial policies, including option to borrow or use partner jurisdictions' credit
Summary
Staff presented draft financial policies that outline how the district would approach borrowing—either by issuing debt itself or using another jurisdiction's credit for bonds—and clarified the policy does not obligate the district to bond immediately or use borrowed funds for operations.
The King County Flood Control District board received a briefing May 13 on draft financial policies that describe how the district would approach borrowing for capital projects, including issuing debt directly or using another jurisdiction's credit to issue bonds on the district's behalf.
Executive Director Michelle Clark said the document, labeled a financial policy rather than a "bonding policy," lays out processes and limits for borrowing but does not direct the district to issue debt immediately. "This policy does not say go out and bond tomorrow," Clark said, adding the policy would allow the district to pursue bonding itself or enter into an interlocal agreement with another jurisdiction (for example, King County) to use that jurisdiction's credit to issue bonds and then repay the debt service.
Clark said the policy would restrict the use of borrowed funds to capital work only and not to ongoing operations or grants. She said the draft anticipates borrowing in an amount roughly equivalent to about 7% of the overall six-year CIP, consistent with practices used by comparable jurisdictions and financial advisors. Clark described steps that would be necessary if the board chose to pursue third-party credit: the board would need to authorize the chair to negotiate an ILA with a partner jurisdiction, and such negotiations and deliberations would likely occur in executive session.
Board members expressed interest in the option, and Clark said staff will continue to work with bond counsel and financial advisors as the board evaluates whether to adopt the financial policy and whether to pursue borrowing arrangements.
