Drafter
Clerk 07/25/2003
Title
A MOTION requesting the King County executive to explore the viability of using leveraged leasing to monetize county assets as a means of realizing financial value and thereby assisting with the county's fiscal shortfall.
Body
WHEREAS, King County's total 2003 budget is $3.14 billion, and
WHEREAS, the county's 2003 current expense (CX) fund budget is $489 million, and
WHEREAS, the CX fund is experiencing a fiscal shortfall that is the result of declining revenue growth and increasing governmental expenses, and
WHEREAS, King County is aggressively reviewing CX expenditures for reductions and researching additional sources of revenue, and
WHEREAS, King County reduced the CX fund budget by $41 million in 2002, $52 million in 2003 and faces continuing current expense fund deficits of $21 million in 2004 and another $21 million in 2005, for a total of $135 million over four years, and
WHEREAS, leveraged leasing is a financial transaction that would allow King County to monetize existing assets to capture financial value from those assets, and
WHEREAS the capture of financial value from existing assets can potentially assist the county in maintaining current programs without cost to the taxpayers, and
WHEREAS, the council and the executive consistently search for ways in which to continue to provide needed services without revenue increases, and
WHEREAS, leveraged leasing is a type of financial transaction used by King County Metro Transit in the past and is currently being used by municipalities in other parts of the United States;
NOW, THEREFORE, BE IT MOVED by the Council of King County:
The executive is requested to immediately begin to explore the viability of leveraged leasing as a means to monetize county assets and provide additional means of continuing needed county programs without raising taxes or other revenues. The executive is requested to complete the due diligence work as outlined in Exhi...

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