At the annual meeting of the Capital Area Regional Public Facilities District (CAR PFD), Lacey assistant city manager Shannon Kelly Fong and longtime local participant John Halvorsen led an orientation on the district’s history and governance. The presentation summarized the statute creating public facilities districts and CAR PFD’s interlocal agreement, and explained which activities are and are not authorized under the district’s charter.

Board members pressed staff for details after the presentation. Troy, a finance staff member for the City of Lacey, told the board that PFD revenues can be used for capital improvements, maintenance and operations. "We are absolutely using some of the funds for operations — we’re currently using $400,000 per year for the operations of the RAC," Troy said.

Why it matters: CAR PFD is a separate municipal corporation created to support large regional facilities. Changes in state law and how the district uses its limited funding affect local budgets, project timelines and what the public can expect from the district’s projects.

Staff walked the board through recent changes in state law that affect PFD funding. Presenters noted that a state sales-tax credit that once flowed to qualifying PFDs was extended by 15 years in 2017 and was again extended by 15 years in 2025 (cited in staff materials as HB 1109). That legislative action effectively lengthens the period during which affected projects can receive state sales-tax rebates; staff said implementation will require a close review and possible amendments to CAR PFD’s interlocal agreement.

Board members also asked about the district’s administrative arrangements. Staff explained that the City of Lacey provides administrative, accounting and clerk services under an interlocal agreement, but the CAR PFD retains authority to hire independent counsel and to maintain its own insurance. Alyssa Fontaine, the city clerk’s office staff liaison, reviewed Open Public Meetings Act (OPMA) duties, public records responsibilities and minimum notice practices, and recommended OPMA training and routine public-records procedures for board members.

The presentation flagged a possible policy conflict regarding dues-paid membership in the Association of Washington Public Facility Districts. Staff told the board that the association engages in legislative outreach and that membership dues have been used to retain a lobbyist (identified in association materials as Jim Hendrick). CAR PFD’s charter contains a clause that expressly prohibits "any attempts to influence legislation," and staff recommended the board direct staff to investigate whether association membership or funding would be inconsistent with the charter.

What’s next: Board members asked staff to return with recommended language or procedures if an interlocal amendment or charter clarification is needed, and to report back on whether membership in the statewide association is permissible under CAR PFD’s governing documents.