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Jefferson County, Washington
Debt Policy
Adopted July 25, 2017
Revised October 22, 2019 to reflect BOCC Resolution 41-19
Revised and reauthorized October 27,January 28, 2020
Jefferson County Debt Policy, rev. January 28, 2020 Page 1 of 14
Contents
Section I. Introduction ................................................................................................................................ 35
Purpose and Overview ............................................................................................................................ 35
Roles and Responsibilities ....................................................................................................................... 35
Section II. Ethical Standards Governing Conduct ....................................................................................... 46
Section III. Credit Objectives ...................................................................................................................... 46
Section IV. Legal Governing Principles, Type, Purpose and Use of Debt .................................................... 57
Legal Governing Principles ...................................................................................................................... 57
Permitted Debt by Type .......................................................................................................................... 57
Unlimited Tax General Obligation Debt .............................................................................................. 57
Limited Tax General Obligation Debt .................................................................................................. 57
Revenue Bonds ................................................................................................................................... 68
Special Assessment Bonds .................................................................................................................. 68
Local Option Capital Asset Lending (LOCAL) Program Debt ............................................................... 68
Lease Purchase, Certificates of Participation (COPS), or Other Financing Contracts ......................... 68
Short Term Debt .................................................................................................................................. 68
Variable Rate Obligations .................................................................................................................... 68
Purpose for Borrowing ............................................................................................................................ 68
Unlimited Tax General Obligation Bonds ............................................................................................ 68
Limited Tax General Obligation Bonds ................................................................................................ 68
Revenue Bonds ................................................................................................................................... 68
Special Assessment Bonds .................................................................................................................. 68
Local Option Capital Asset Lending (LOCAL) Program Debt ............................................................ 79
Lease Purchase, Certificates of Participation (COPS), or Other Financing Contracts ......................... 79
Short Term Debt .................................................................................................................................. 79
Legal Debt Limitations ............................................................................................................................ 79
Unlimited Tax General Obligation Debt .............................................................................................. 79
Limited Tax General Obligation Debt LTGO ........................................................................................ 79
Revenue Obligations ........................................................................................................................... 79
Assessment-backed Obligations ....................................................................................................... 810
The LOCAL Program debt .................................................................................................................. 810
Lease Purchase or Other Financing Contracts debt .......................................................................... 810
Short Term Obligations ..................................................................................................................... 810
Jefferson County Debt Policy, rev. January 28, 2020 Page 2 of 14
Section V. Authorized Professional Services ............................................................................................. 810
Bond Counsel .................................................................................................................................... 810
Financial Advisor ............................................................................................................................... 911
Underwriter (or Placement Agent) ................................................................................................... 911
Fiscal Agent ....................................................................................................................................... 911
Other Service Providers .................................................................................................................... 911
Section VI. Debt Issuance ......................................................................................................................... 911
Maturity Structure ............................................................................................................................ 911
Method of Sale .................................................................................................................................. 911
Competitive Sale ............................................................................................................................... 911
Negotiated Sale ............................................................................................................................... 1012
Private Placement ........................................................................................................................... 1012
Credit Enhancement ....................................................................................................................... 1012
Section VII. Refunding Obligations ......................................................................................................... 1012
Advance refunding .......................................................................................................................... 1012
Current refunding ........................................................................................................................... 1012
Section VIII. Other Duties and Obligations ............................................................................................. 1113
Investment of Bond Proceeds ......................................................................................................... 1113
Arbitrage and Tax Law Requirements ............................................................................................. 1113
Disclosure Documents .................................................................................................................... 1113
Derivative Products ......................................................................................................................... 1214
Bond Users Clearinghouse .............................................................................................................. 1214
Appendix A: Jefferson County – List of Reserve Recommendations ...................................................... 1315
Jefferson County Debt Policy, rev. January 28, 2020 Page 3 of 14
Section I. Introduction
Purpose and Overview
The Debt Policy for Jefferson County is established to help ensure that all debt is issued both prudently
and cost effectively. The Debt Policy sets forth comprehensive guidelines for the issuance and
management of all financings of Jefferson County. Adherence to the policy is essential to ensure that the
County maintains a sound debt position and protects the credit quality of its obligations.
Roles and Responsibilities
In accordance with RCW 36.48.070, the Finance Committee (consisting of the Treasurer as Chairperson,
the Auditor as Secretary, the Chair of the County Legislative Authority, and referred to hereafter the
"Finance Committee" or "Committee") has been established. It shall be the duty of this committee to
approve the County debt policy and to make appropriate rules and regulations for the carrying out of the
provisions of RCW 36.48.010 through 36.48.060 not inconsistent with the law. In accordance with State
law, the Committee shall adopt a Debt Policy, (chapter 36.48.070 RCW) which shall be reviewed and
updated at least every four years.
The County Commissioners shall initiate all debt issuance upon request of the County Administrator.
Any debt issued by the County shall be incurred in accordance with a Resolution adopted by the County
Council (chapter 39.46 RCW).
The County Administrator and the County Central Services Director may attend Finance Committee
meetings and provide advice to the Finance Committee. The County Administrator may designate the
Central Services Director or other qualified personnel as his designee to complete the functions detailed
in this policy on behalf of the County Administrator. The County Administrator shall make a
recommendation to the Board of County Commissioners on all requests for action on financing based on
requests from elected officials or department heads or in accordance with the County's Capital
Improvement Plan (CIP). The County Administrator shall recommend if long-term debt should be issued
and if so, will recommend a debt repayment term that is less than or equal to the expected useful life of
the facility/project. The Administrator will recommend the amount of net proceeds required and
whether the debt will be voted general obligation bonds or limited tax general obligation bonds. See
Section IV for additional types of debt.
The County shall develop a Capital Improvement Plan (CIP) that lists the capital projects and needs of the
County for a five year period, to be reviewed and updated biennially. The plan shall include a description
of each project or need identified, the projected cost and timing of the project, and preliminary sources of
funds identified for payment of the project. Prior to seeking financing for new capital projects the County
shall ensure existing debt service obligations and county operations are sufficiently funded. In addition,
the County should ensure that existing capital assets are well maintained and preserved. Finally the
County should acquire new assets based on the greatest need and only when it has the capacity to service
new debt and to maintain the new assets.
Priorities shall be established based upon (1) the need for the project, in order to provide required County
services, (2) availability of funding or debt repayment source, and (3) availability of staff to carry out the
project in the time frames specified.
The County Administrator shall coordinate the biennial update of the CIP.
Jefferson County Debt Policy, rev. January 28, 2020 Page 4 of 14
The County Administrator and the County Treasurer shall perform the activities and services
required for the issuance of debt, in consultation with required professionals and other service providers.
They will represent the County to the rating agencies.
The County Administrator shall inform the County's Finance Committee of all debt issuance plans.
The County Treasurer shall coordinate the debt issuance activities, shall inform the Finance Committee
of the status of all financings in process, and shall ensure that all debt service items are included in the
biennial budget.
The County Treasurer shall be notified at least 30 days in advance of authorization of the issuance of
bonds or the incurrence of other certificates of indebtedness (chapter 39.46.110 RCW). The County
Treasurer shall select the financial advisor (if any) and the bond underwriter consistent with the County’s
general authority to contract and Chapter 3.55 JCC; determine best method of sale for each issue; act as
Jefferson County's liaison to the selected financial advisor and/or bond underwriter; provide the County
Administrator with appropriate information for Commissioner’s agenda items necessary to adopt the debt
issue ordinance; and represent the County at bond closings.
The County Treasurer shall receive any bond proceeds on behalf of the County and shall provide for the
timely payment of principal of and interest on all debt; ensure that the fiscal agent receives funds for
payment of debt service on or before the payment date; and the payment of the County's debt service.
The County Treasurer and County Administrator shall supply all necessary financial information for
the debt issue; and prepare or review, and sign disclosure documents, such as official statements and
continuing disclosures. The County Treasurer shall be responsible for continuing disclosure requirements.
The County shall provide certain financial and operating information annually to the Municipal Securities
Rulemaking Board (the “MSRB”) and provide notice to the MSRB of certain events pursuant to any
Continuing Disclosure undertakings entered into with Underwriters per 15c2-12 regulations.
The County Treasurer and County Administrator shall monitor Jefferson County's financial status. On
an ongoing basis, the County Treasurer and County Administrator shall also evaluate the impact of capital
spending, operations, and debt service on the financial condition of the County. If a "material event"
occurs or if there is a likelihood that a material event will occur, the County Administrator will
immediately notify the County Treasurer and County Commissioners of the circumstances.
The County's Prosecuting Attorney working with the County Treasurer shall appoint Bond Counsel
(RCW 36.27.020 and RCW 36.27.040)
Section II. Ethical Standards Governing Conduct
The County Commissioners, the County Administrator, the members of the Finance Committee, and the
Prosecuting Attorney shall adhere to standards of conduct as stipulated by the following:
Jefferson County Personnel Administration Manual Chapter 4; Code of Ethics and
Appendix B
Public Disclosure Act, chapter 42.17 RCW; and
Ethics in Public Service Act, chapter 42.52 RCW.
Section III. Credit Objectives
The County will seek to maintain a credit rating or ratings for all categories of debt that will not
compromise delivery of basic County services and achievement of the County's policy objectives. It shall
Jefferson County Debt Policy, rev. January 28, 2020 Page 5 of 14
be the County's goal to maintain at least one long-term general obligation bond rating in the "AA"
category or higher. Any change to the minimum credit quality level goal for the County shall be
established by the County Commissioners by resolution.
Consistent with maintenance of its current "AA" general obligation rating, the County shall maintain an
undesignated balance (i.e., unrestricted cash) in its general fund (or any related reserve fund that may be
created for this purpose), at least equal to 10% of its budgeted general fund expenditures. Jefferson
County has consistently held an undesignated balance over 15%. Additional policies intended to support
the maintenance of the County's current ratings are contained throughout this Debt Policy and include:
1) Length of debt and payback goals;
2) Purpose, type and use of debt;
3) Capital Improvement Plan;
4) A Resolution for Reserve Recommendations of all funds (Appendix A of this Policy);
and
5) A policy for building a Revenue Stabilization Reserve of up to 5% of general fund
expenditures, above and beyond the aforementioned 10%.
Section IV. Legal Governing Principles, Type, Purpose and Use of Debt
Legal Governing Principles
In the issuance and management of debt, Jefferson County shall comply with the state constitution and
with all other legal requirements imposed by federal, state, and local rules and regulations, as applicable.
State Statutes - Jefferson County may contract indebtedness as provided for by RCW 39.46.
Indebtedness is subject to the limitations on indebtedness provided for in RCW 39.52 and Article VIII of
the Washington State Constitution. Bonds evidencing such indebtedness shall be issued and sold in
accordance with RCW chapter 39.46.
Federal Rules and Regulations - The County shall issue and manage debt in accordance
with the limitations and constraints imposed by federal rules and regulations, including Internal Revenue
Code of 1986, as amended; the Treasury Department regulations thereunder; and the Securities Acts of
1933 and 1934.
Local Rules and Regulations - The County shall issue and manage debt in accordance with the
limitations and constraints imposed by local statutes, charters, resolutions, rules and regulations.
Permitted Debt by Type
The County may legally issue debt using only the debt instruments described below. Each financing
option requires the formal approval of the County Commissioners through a resolution.
Unlimited Tax General Obligation Debt is backed by the full faith and credit of the County and is
secured by general fund revenues and voted excess tax levies collected by the County.
Limited Tax General Obligation Debt is secured by regular tax levies and revenues, and includes all
types of obligations whether lease-purchase, financing contracts, loans, bonds or other payment
obligations. Rental leases are not considered debt, but financing leases are. Any financing of the County
completed through the LOCAL Program (discussed below) will constitute general obligation debt.
Jefferson County Debt Policy, rev. January 28, 2020 Page 6 of 14
Revenue Bonds - The County is authorized to sell Revenue Bonds by County Commissioners’
resolution, in accordance with Section 3.16 of the County Code. Debt service coverage, reserve levels
and other covenants associated with the issuance of revenue bonds will be determined on a case by case
basis in consultation with the County's financial advisor (if any) and/or underwriter with the goal of
providing sufficient protection to the County and bond market acceptance.
Special Assessment Bonds -The County is authorized to sell assessment-backed obligations, based on
the formation of special districts such as road improvement districts (RIDs) and local improvement
districts (LIDs) the formation of which is detailed under chapter 36.88 RCW, subject to the approval of
the County Commissioners.
Local Option Capital Asset Lending (LOCAL) Program Debt - The County is authorized to enter
into a financing contract with the Office of the State Treasurer under chapter 39.94 RCW, subject to the
approval of the County Commissioners.
Lease Purchase, Certificates of Participation (COPS), or Other Financing Contracts - The
County is authorized to enter into capital leases subject to the approval of the County Commissioners.
These represent general obligations of the County. Other financing contracts include property acquired
subject to real estate contract.
Short Term Debt – The County is authorized to sell short term debt under Chapter 39.50 RCW, subject
to the approval of the Board of Commissioners. Short term obligations can take the form of bond
anticipation notes, tax anticipation notes, revenue anticipation notes, grant anticipation notes, a bank line
of credit, or registered warrants (Chapter 39.50 RCW).
Variable Rate Obligations– The County is authorized to sell obligations with variable interest rates
under Chapter 39.60 RCW, subject to the approval of the Board of Commissioners. (Chapter 39.60
RCW)”
Purpose for Borrowing
The County shall issue long-term debt solely for the purpose of design, acquisition and construction of
capital projects, and acquisition of other capital items, as defined in the Capital Improvement Plan.
Unlimited Tax General Obligation Bonds - The County shall use Unlimited Tax General Obligation
Bonds for capital purposes, when the project has broad support by the County's residents, or the use of an
excess tax levy is necessary for debt service payments.
Limited Tax General Obligation Bonds - The County shall use Limited Tax General Obligation Bonds
for general county purposes, when a specified repayment source has been identified within existing
revenue sources, through new revenue sources, or in the event of an emergency.
Revenue Bonds -The County shall use Revenue Bonds for the purpose of financing construction or
improvements to facilities of enterprise systems operated by the County, in accordance with a system and
plan of improvements. The enterprise systems must be an established system legally authorized for
operation by the County.
Special Assessment Bonds -The County shall use Special Assessment Bonds to finance projects that
will provide special benefit to certain property owners.
Jefferson County Debt Policy, rev. January 28, 2020 Page 7 of 14
Local Option Capital Asset Lending (LOCAL) Program Debt - The County shall use LOCAL
Program Debt as it allows pooling of smaller equipment financing and certain real estate project needs
into larger offerings of securities, and allows local government agencies the ability to finance equipment
needs through the State Treasurer's office, subject to existing debt limitations and financial consideration.
Lease Purchase, Certificates of Participation (COPS), or Other Financing Contracts - In addition
to LOCAL, the County shall consider other lease purchase or other financing contracts when deemed to
be cost effective.
Short Term Debt - The County shall use Short Term Debt (obligations of less than 1 year) to provide
interim financing for capital projects (in conjunction with the development of a long term financing plan)
and to provide necessary liquidity.
To manage Jefferson County's cash flow, the County Treasurer may make loans with a term of twelve
months or less to any Jefferson County fund from another fund. The County Treasurer may make loans
from any Jefferson County fund from another fund with a term of greater than twelve months with
County Commissioners’ approval.
Legal Debt Limitations
The County shall issue debt with an average life less than or equal to the useful life of the assets being
financed. In no case will the term of any financing exceed the life of the asset being financed. Unless
otherwise stated in law, the final maturity of the debt shall be no longer than 40 years (RCW 39.46.110).
Unlimited Tax General Obligation Debt is payable from excess tax levies and is subject to voter
approval. Any proposition for UTGO debt must be approved by 60% of the voters casting a vote and the
total number of ballots cast must be at least equal to 40% of the total number of voters voting in the last
general county or state election (chapter 39.40 RCW). Total GO debt (including limited and unlimited
tax) is subject to a statutory debt limitation of 2.5% of the County's assessed value (chapter 39.36.020
RCW).
Limited Tax General Obligation Debt LTGO debt is subject to a statutory debt limitation of 1.5% of
the County's assessed value (chapter 39.36.020 RCW).
The target amount of limited tax debt outstanding will not exceed 40% of the statutory debt limitation
(subject to an affordability analysis of the county’s current expense fund) unless required for unique
capital improvement projects, circumstances, or to meet an emergency requirement caused by natural
disaster, legal judgment or similar unplanned events.
Revenue Obligations There are no legal limits to the amount of revenue bonds the County can issue, but
there are practical limits to the County's ability to repay obligations (chapter 36.67.570 RCW). Revenue
bonds are generally subject to certain tests and requirements, including (1) establishment and maintenance
of a debt service reserve fund (generally equal to average annual debt service), (2) rates and charges must
provide net revenue after payment of operating expenses equal to a multiple of a minimum 1.25 times the
debt service requirement, recognizing that from time to time the multiple may need to be higher than 1.25
times depending on the type and purpose of the enterprise and debt. Additional covenants and pledges
must be made for the benefit of bondholders. The County will not incur Revenue obligations without first
ensuring the ability of an enterprise system to consistently meet any pledges and covenants customarily
required by investors in such obligations, during the term of the obligation.
Jefferson County Debt Policy, rev. January 28, 2020 Page 8 of 14
Assessment-backed Obligations The benefiting property owners are charged an assessment based upon
a formula developed to fairly reflect the benefit received by each property owner in the assessment
district. In the event of annexation of property from the County, the property owners will still be
responsible for payment of assessments. There are detailed statutes for the formation of assessment
districts and assessing property, which contain specific timeframes for notice and conducting public
hearings (chapter 36.88 RCW). The County will form road improvement districts (RIDs) or local
improvement districts (LIDs) upon petition of benefiting property owners, unless the County
Commissioners determine to establish the districts by resolution.
The County Administrator and County Treasurer shall be provided with enough detail to determine the
size, timing and characteristics of the project and any contribution the County is providing to the cost of
the improvements. No assessment district in which there is undeveloped land, land owned by
governmental entities, land designated as "open space," or a concentration of ownership in a few property
owners, will be formed without review by the County's financial advisor or underwriter, and bond
counsel.
The LOCAL Program debt limitations are the same as for general obligations debt.
Lease Purchase or Other Financing Contracts debt limitations are the same as for general
obligations debt.
Short Term Obligations
Unless otherwise justified, the County operates on a pay-as-you-go basis for operating expenses. The
Treasurer is, however, authorized to issue short-term debt in order to manage the County's cash flow
circumstances. The issuance of short-term debt may also be warranted if timing or other similar
circumstances occur on a long-term debt issue.
In no case will notes or other obligations be entered into for the purpose of funding operating deficits
without prior development and review of a long term deficit funding plan. The use of short term financing
shall be evaluated by the County Treasurer and compared with the cost of internal financing or interfund
loans. All interfund loan resolutions will be reviewed by the County Treasurer to ensure that the
appropriate "reimbursement" language is included, the correct fund numbers are used, and to develop the
appropriate debt repayment schedule.
Section V. Authorized Professional Services
The Finance Committee shall approve all debt related professional service contracts, unless Board
approval is required by Chapter 3.55 JCC, Letting of County Contracts. Selection of authorized financial
professionals may be made through a negotiated process, competitive bid process or a Request for
Proposal (RFP). Contract solicitations shall include efforts to address diversity and inclusion.
The highest ethical standards shall be maintained, which shall include but not be limited to disclosure by
the potential professionals of conflicts of interest, persons, firms, or corporations engaged by the
professionals to promote their selection by the County, experience in providing the requested professional
service, and other criteria that may apply to specific professional services. These professional services
include, but are not limited to:
Bond Counsel -All debt issued by the County shall include a written opinion by legal counsel affirming
that the County is authorized to issue the proposed debt, that all statutory requirements have been met
and a determination of the proposed debt's federal income tax status. This approving opinion and other
Jefferson County Debt Policy, rev. January 28, 2020 Page 9 of 14
documents relating to the issuance of debt shall be prepared by a nationally recognized legal firm with
extensive experience in public finance and tax issues. The firm selected as bond counsel will be expected
to provide the full range of legal services required in connection with the successful issuance and delivery
of the bond issues and on-going legal services related to the bond issue. Bond Counsel will be appointed
by the Prosecuting Attorney working with the County Treasurer to serve as special prosecutor per RCW
36.27.040.
Financial Advisor - If the County Treasurer determines that it is in the best interest of the County to hire
a financial advisor, then the County Treasurer shall select a financial advisor consistent with the County's
general authority to contract. The financial advisor shall have comprehensive municipal debt experience,
including debt structuring and pricing of municipal securities. The County requires that the financial
advisor act in compliance with the MSRB's Rule G-23 (activities of Financial Advisors).
Underwriter (or Placement Agent) - For negotiated sales, the County Treasurer will select an
underwriter, consistent with the County's general authority to contract, taking into account the type of
issue, experience offered and other relevant criteria. The selection of underwriter may be for an individual
bond issue, series of financings, or a specified time period, as determined by the County Treasurer. The
underwriter shall have sufficient capitalization and experience to serve as underwriter for the County.
Fiscal Agent - The County Treasurer will appoint the Fiscal Agent (chapter 39.44.130 RCW) and may,
at his/her sole discretion, serve as registrar for very small issues or those privately placed with investors.
Neither the County or special purpose districts can obligate the County Treasurer to serve as registrar
without prior written approval of the Treasurer.
Other Service Providers - other professional services such as verification agent, escrow agent or
arbitrage rebate calculation firm shall be appointed by the County Treasurer, and are considered
incidental to undertaking the issuance of debt.
Section VI. Debt Issuance
Maturity Structure -In no case will the term of any financing exceed the life of the asset being financed.
The term of financing shall also take into account the repayment source when one is specifically
identified.
Debt issued by the County should be structured to provide level annual debt service, although assessment-
backed bonds may use equal annual principal. Certain debt supported by a unique revenue stream may be
structured to match the revenue stream. Deferring the repayment of principal should be avoided except in
select instances where it will take a period of time before project revenues are sufficient to pay debt
service.
Method of Sale - The County Treasurer shall determine the method of sale best suited for each issue of
debt. Possible methods of sale are described below.
Competitive Sale - If the County decides on a competitive sale of County debt, it will require a
Commissioner resolution authorizing the issuance and sale of debt, and terms and conditions of sale.
If County debt is issued by competitive bid it will be sold to the bidder proposing the lowest true interest
cost to the County, provided the bid meets all other requirements. A Commissioner resolution will direct
Jefferson County Debt Policy, rev. January 28, 2020 Page 10 of 14
the County Treasurer to accept the winning bid and to complete the issuance and delivery of the duly
authorized debt.
Negotiated Sale - The Finance Committee or the County Treasurer may recommend negotiation of the
terms and conditions of the sale for large or complex transactions or for the refunding of debt, when in the
best interest of the County. The County Treasurer, working with the Finance Committee, and bond
counsel, shall be responsible for the negotiations. Any negotiated sale of County debt will require
Commissioner resolution.
Negotiation of terms and conditions occurs on all issues of negotiable sales. Guidelines will be based on
prevailing terms and conditions in the marketplace for comparable issuers.
Following the execution of a purchase contract, the lead underwriter will comply with all Municipal
Securities Rulemaking Board regulations governing order priorities and allocations, and submit to the
Treasurer a complete and timely account of all orders, allocations, and underwriting activities related to
the sale of County debt under its management.
Private Placement - The County Treasurer may deem it appropriate, in order to minimize the costs and
risks of the County's debt issue, to sell the County's debt obligations through a private placement or
limited public offering.
Credit Enhancement - For some bond issues, the County may consider the use of credit enhancement.
Credit enhancement will only be used when the projected present value benefit is greater than the cost of
insurance. The projected present value benefit will be determined by comparing the expected interest cost
for the financing both with and without insurance, when discounted by the expected interest rate on the
bonds.
For insured debt, the County will not purchase more than one bond rating unless required. For
competitive bond sales, the County may make insurance available at the option and expense of bidders.
Bidders may choose to purchase additional bond ratings at their own expense.
Section VII. Refunding Obligations
The County Treasurer shall continually review the County's outstanding debt and recommend issues for
refunding as market opportunities arise. Debt shall be refinanced only for the purpose of achieving debt
service savings, unless required to achieve specific debt management goals of the County.
The County will not refinance debt for the purpose of deferring scheduled debt service, unless unique
circumstances are present. The County is aware that refinancing for the purpose of deferring debt service
may have an impact on its credit rating.
Advance refunding transactions may be completed when net present value savings equal at least 3.5% of
the amount of debt being refunded. Advance refunding transactions are those undertaken in advance of
the first date on the refunded debt can be called for optional redemption, and require the establishment of
an escrow account for the defeasance of the refunded debt. All costs incurred in completing the refunding
shall be taken into account when determining the net present value savings.
Current refunding transactions shall be considered whenever possible. Current refunding transactions
are those undertaken up to 90 days prior to or after the call date on outstanding debt, and provide for
immediate redemption and replacement of refunded debt. The savings level for a current refunding should
take into account the number of years remaining on the bonds, within the following general guidelines:
Jefferson County Debt Policy, rev. January 28, 2020 Page 11 of 14
Years Between Call Date
and Final Maturity
Present Value
Savings Target
1-2 years 1%
3-4 years 2%
5-6 years 3%
7-8 years 4%
9 plus years 5%
The County may purchase its bonds in the open market for the purpose of retiring the obligations, when
cost effective.
Section VIII. Other Duties and Obligations
Investment of Bond Proceeds - Each Bond Resolution will provide for establishment of funds and
accounts, which will be designated in advance by the county Treasurer. The County Administrator will
give direction to the County Treasurer on the length of time bond proceeds are to be invested. Investments
will be made, in accordance with the Jefferson County Investment Policy and procedures established by
the County Treasurer.
Arbitrage and Tax Law Requirements - Prior to any debt issuance, the County Administrator shall be
provided with, or shall prepare, a schedule that shows the expected timing and amount of expenditures to
be made from the project fund. This schedule will be provided to Bond Counsel for use in developing an
Arbitrage Certificate.
The County Treasurer shall be responsible for compliance with arbitrage reporting and will keep records
of investment of bond proceeds and bond funds sufficient to develop calculations required for compliance
with arbitrage and other tax law requirements and may retain the services of a qualified professional firm
to provide computations relating to potential arbitrage liability of the County.
The County Administrator shall be responsible for compliance with any other tax law requirements.
Disclosure Documents
Primary market disclosure - The County Administrator and County Treasurer will serve as the focal point
for information requests relating to official statements to be used in the initial offering of the County's
bonds or notes. The County Administrator or County Treasurer will request from relevant departments,
information required for disclosure to investors and rating agencies. Each department bears responsibility
for the information provided for use in the County's official statements.
The Board of County Commissioners will be provided with a copy of the official statement for each issue
of debt, and the Chair of the Board will sign a statement attesting to the accuracy and completeness of the
information therein.
Secondary market disclosure -The County Administrator and/or Finance Manager and County Treasurer
shall review any proposed undertaking to provide secondary market disclosure, and will provide
secondary market disclosure annually, if the County has contracted to provide any.
Financial Updates and Budget Reports – Monthly budget reports showing the current status of revenues
and expenditures will be prepared and distributed to appropriate legislative, staff and management
personnel in a timely manner and made available for public inspection.
Jefferson County Debt Policy, rev. January 28, 2020 Page 12 of 14
Monthly financial updates will be presented to the County Commissioners showing current debt and
investment balances and activity.
Derivative Products
No derivative products will be utilized unless permitted by law, and not without prior County
Commissioners’ approval. No derivative products shall be utilized without an analysis by an independent
financial advisor. No derivative products shall be used for the purpose of interest rate speculation.
Bond Users Clearinghouse
The County Treasurer shall ensure that the Bond Users Clearinghouse receives municipal bond
information for all debt sold as provided by chapters 39.44.200 through 39.44.240 RCW and Chapter
365-130 WAC. The information requested by RCW 39.44.210 includes but is not limited to: the par value
of the bond issue; the effective interest rates; a schedule of maturities; the purposes of the bond issue; cost
of issuance information; and the type of bonds that are issued.
Approved and adopted this28th Day of July, by the Jefferson County Finance Committee.
Stacie Prada, Chair of Finance Committee and County Treasurer
Rose Ann Carroll, Secretary Finance Committee and County Auditor
Greg Brotherton, Member of Finance Committee and Chair of County
Board of Commissioners
Jefferson County Debt Policy, rev. January 28, 2020 Page 13 of 14
Appendix A: Jefferson County – List of Reserve Recommendations
Adopted by Resolution 41-19 on July 22, 2019, or as may be subsequently amended by Resolution
Fund % Minimum
reserve Description
001-GENERAL FUND 15% 15% of Total Spending - 10% for routine short-term cyclical cash flow
needs and 5% for longer term revenue stabilization
105-AUDITOR'S O&M 10% 10% of Total Spending, excluding capital
106-COURTHOUSE FACILITATOR N/A None Required
107-BOATING SAFETY PROGRAM 10% 10,000 10% of Total Spending, or $10,000 whichever is larger, excluding capital
108-COOPERATIVE EXT. PROGRAMS 10% 32,000 10% of Total Spending, or $32,000, whichever is larger
109-NOXIOUS WEED CONTROL 10% 10% of total spending
113-4-H AFTER SCHOOL 10% 10,000 10% of Total Spending, or $10,000, whichever is larger
114-ECONOMIC DEVELOPMENT N/A None Required
119-JEFFCOM BOND FUND 5% 5% of Debt Service Expense
120-CRIME VICTIMS SERVICES 10% 10% of Total Spending
123-JEFF CO GRANT MANAGEMENT FUND 10% 34,000 10% of Total Spending, or $34,000, whichever is larger
125-HOTEL-MOTEL 25% 25% of Total Revenue
126-H&HS SITE ABATEMENT N/A None Required
127-PUBLIC HEALTH N/A 253,981 Minimum recommended reserve is 253,981
128-WATER QUALITY 10% 171,000 10% of Total Spending, or $171,000, whichever is larger
130-MENTAL HEALTH N/A Pass Through Fund only
131-CHEMICAL DEPEND/MENTAL HEALTH 10% 10% of Total Revenues
135-JEFFERSON COUNTY DRUG FUND 10% 10% of Total Spending
136-SHERIFF DRUG INVESTIGATION 10% 10% of Total Spending
140-LAW LIBRARY 10% 10% of Total Spending, Excluding Capital
141-TRIAL COURT IMPROVEMENT 10% 10% of Total Spending
143-COMMUNITY DEVELOPMENT 10% 153,000 10% of Total Spending, or $153,000, whichever is larger
147-FEDERAL FOREST TITLE III N/A None Required
148-JEFF CO AFFORDABLE HOUSING 10% 10% of Total Spending
149-HOMELESS HOUSING FUND 10% 10% of Total Spending
150-TREASURER'S O&M N/A None Required (RCW84.56020(08)
151-REET TECHNOLOGY FUND N/A None Required
155-VETERANS RELIEF 10% 10% of Total Spending
160-WATER POLLUTION CNTRL LOAN FUND 10% 67,000 10% of Total Spending, or $67,000, whichever is larger
174-PARKS AND RECREATION 10% 64,000 10% of Total Spending, or $64,000, whichever is larger
175-COUNTY PARKS IMPROVEMENT FUND N/A Capital projects only; Fund requires no working capital
178-POST HARVEST TIMBER MGMT RESV N/A Special Projects only, Based on prefunding expenses
180-COUNTY ROADS 25% 25% of Operating Expenses, excluding capital
181-EMERGENCY ROAD RESERVE N/A Emergency Projects only, based on prefunding
183-FACILITIES MANAGEMENT 10% 66,000 10% of Total Spending, or $66,000, whichever is larger
185-FLOOD/STORM WATER MANAGEMENT N/A Capital projects only; Fund requires no working capital
186-BRINNON FLOOD CONTROL SUB-ZONE N/A Capital projects only; Fund requires no working capital
187-QUILCENE FLOOD CONTROL SUB-ZONE N/A Capital projects only; Fund requires no working capital
301-CONSTRUCTION & RENOVATION N/A 10% of Total Spending, excluding capital
302-COUNTY CAPITAL IMPROVEMENT 50% 50% of Annual Debt Service expense
306-PUBLIC INFRASTRUCTURE Varies Unpaid portion of approved grants
308-CONSERVATION FUTURES TAX 10% 10% of Total Spending, excluding capital
401-SOLID WASTE 10% 10% of Total Spending
402-SOLID WASTE POST CLOSURE N/A Based on prefunding post-closure expenses
403-SOLID WASTE EQUIPMENT RESERVE N/A Capital projects only; Fund requires no working capital
Jefferson County Debt Policy, rev. January 28, 2020 Page 14 of 14
404-YARD WASTE EDUCATION FUND N/A Prefunded expenses
405-TRI-AREA SEWER FUND 10% 10% of Total Spending, excluding capital
501-EQUIPMENT RENTAL & REVOLVING 25% 25% of 12/31 Accumulated Depreciation for Equipment
502-RISK MANAGEMENT RESERVE N/A 216,000 10% of Total Spending, or $216,000, whichever is larger
503-JC UNEMPLOYMENT RESERVE N/A None Required
504-INDUSTRIAL INSURANCE RESERVE N/A None Required
505-EMPLOYEE BENEFIT RESERVE N/A 125,000 10% of Total Spending, or $125,000, whichever is larger
506-INFORMATION SERVICES 25% 25% of 12/31 Accumulated Depreciation for Equipment