Financial management

How is King County doing?

King County has one of the highest bond ratings for local governments in the nation. Since 2005, the county has had the highest rating on all of its General Obligation debt from Standard & Poor's, one of three bond rating agencies. All three rating agencies give the highest possible rating on the county's voter-approved bonds. The result of these favorable ratings means that the amount of interest charged on the bonds is reduced and the overall cost of bonding is reduced.

What else influences these indicators?

Bond ratings are influenced by several factors including financial management practices, continued positive financial performance, debt structure, strength of the regional economy, and demographic factors such as a solid customer rate base and a large service area.

What role does King County government play?

King County has been recognized by the Government Finance Officers Association of the United States and Canada for its comprehensive annual financial report (CAFR). The organization awarded the county with its Certificate of Achievement for Excellence in Financial Reporting - King County's 27th straight year of receiving the certificate, which is the highest form of recognition in the area of governmental accounting and financial reporting. The CAFR is referenced in every bond sale and is part of what helps King County achieve a high bond rating and garner lower interest rates on bonds on behalf of county taxpayers.

The county's finance staff closely monitors interest rate conditions to identify debt refinancing opportunities called "refundings." The county frequently uses debt refundings to lower borrowing costs, which is similar to a citizen refinancing their mortgage to obtain lower monthly payments. For example, the County's high credit ratings on the sales of $237 million of refunding bonds completed in 2008 achieved future debt service savings for taxpayers with a present value of $13 million. The present value of the total future debt service savings resulting from the County's sale of $ 755 million in refunding bonds since 2003 is $49 million.