MEETING: Untitled Meeting at Mon, Oct 27, 03:00 PM

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Jefferson County Finance Committee Meeting Summary

Meeting Commencement and Procedural Matters

Metadata

  • Time Range: 00:00:15–00:01:31
  • Agenda Item: Not Stated (Committee Convening, Public Comment, Minutes Approval)
  • Categories: operations

Topic Summary

The Jefferson County Finance Committee meeting was called to order. Following a brief period for online public comment, during which no speakers presented, the committee moved to approve the minutes from the July 28, 2025, meeting. The minutes were approved unanimously by the attending members.

Key Discussion Points

  • The meeting was called to order by the Treasurer at 00:00:22.
  • A public comment period was held for anyone online (00:00:27–00:00:36).
  • A motion was made by (Speaker Unidentified) to approve the July 28, 2025, minutes (00:01:05–00:01:12).
  • The motion was seconded by (Speaker Unidentified) (00:01:12–00:01:13).

Public Comments

No public comment on this topic.

Supporting Materials Referenced

No supporting materials referenced.

Financials

No financial information discussed.

Alternatives & Amendments

No alternatives discussed.

Outcome, Vote, and Next Steps

  • Decision: The July 28, 2025 minutes were approved.
  • Vote: Unanimous (Vote taken at 00:01:13–00:01:19).
  • Next Steps: No next steps specified.

Debt and Investments Overview

Metadata

  • Time Range: 00:02:43–00:08:06
  • Agenda Item: Not Stated (Informational Report)
  • Categories: budgeting, investments, debt

Topic Summary

The committee reviewed the county's debt and investment portfolio, which includes holdings for Jefferson County and its Special Purpose Districts. The discussion focused primarily on the performance of the Local Government Investment Pool (LGIP) rate, which was 4.2918% for September. The Treasurer noted that the LGIP rate remained competitive compared to short-term Treasury par yield curve rates and discussed the implications of the currently inverted yield curve and anticipated Federal Reserve interest rate decisions.

Key Discussion Points

  • The reports cover all investments and debt held by Jefferson County and Special Purpose Districts (SPD) (00:02:51–00:03:01).
  • The LGIP rate for September was 4.2918% (00:03:25–00:03:30), which remains above the one-year, two-year, three-year, five-year, and ten-year Treasury par yield curve rates (00:03:55–00:04:05).
  • The county can invest out to 5 years total, but the LGIP itself invests out to 2 years (00:04:10–00:04:16).
  • The Treasurer noted the presence of an inverted yield curve, which exists when the 10-year rate is getting a worse rate than the 2-year (00:04:28–00:04:33).
  • The Federal Reserve is anticipated to meet this week, possibly dropping the federal funds rate by a quarter point (00:04:44–00:05:02). This potential change would affect the 2024 GAN (sewer line of credit) (00:05:09).
  • The LGIP average is described as the "blue line at the very top" of the chart, distinct from other lines, indicating it trailed both the rise and fall of rates (00:06:19–00:06:42).

Public Comments

No public comment on this topic.

Supporting Materials Referenced

Supporting materials (charts for Treasury par yield curve rates and LGIP) were referenced for visual comparison.

Financials

  • LGIP Rate (September): 4.2918%
  • Federal Funds Rate (Current Range): Between 4% and 4.25% (00:05:33–00:05:39).

Alternatives & Amendments

No alternatives discussed.

Outcome, Vote, and Next Steps

No action taken; item was informational.

County Investment Portfolio Summary (End of September)

Metadata

  • Time Range: 00:08:06–00:12:44
  • Agenda Item: Not Stated (Investment Summary)
  • Categories: investments, budgeting

Topic Summary

The Treasurer presented the investment summary as of the end of September. The total portfolio value was $202 million. Of this, $197 million was held in the state's pool. The Treasurer cautioned that the $38.6 million in Treasurer's cash is not solely county money but includes Special Purpose District (SPD) funds. 98% of county and SPD investments are held in the pool, with 2% in agency securities. The Treasurer indicated that low rates for public funds CDs are leading the office to rely more heavily on the LGIP, though longer-term investments are becoming more appealing.

Key Discussion Points

  • The total investment portfolio as of the end of September was $202 million (00:08:15).
  • The portfolio includes $197 million in the state's pool (00:08:23–00:08:25).
  • Treasurer’s cash was $38.6 million, which includes Special Purpose District money, not just county funds (00:08:34–00:08:40).
  • The General Fund cash balance for context was $6.4 million (00:08:47).
  • 98% of all county and special district investments are in the pool; 2% are in agency securities (00:09:02).
  • The portion of Treasurer's cash in the LGIP is 91% (00:09:09–00:09:11).
  • The Treasurer is not currently holding any CDs because the rates for public funds are too low, as public funds must be kept liquid (00:09:21–00:09:37).
  • Certain funds held investments in the Jefferson County investment pool (securities/treasuries): General Fund ($4 million), Fire District 2 ($372,000), Power Valley ($400,000), and the Library (00:12:06–00:12:24).

Public Comments

No public comment on this topic.

Supporting Materials Referenced

The LGIP portfolio report showed a rate of return of 4.29% for September (00:10:49).

Financials

  • Total Portfolio: $202 million
  • Held in State’s Pool: $197 million
  • Treasurer’s Cash: $38.6 million
  • General Fund Cash Balance: $6.4 million
  • Federal Rate of Return (Securities/Treasuries): 1.74% (00:11:46–00:11:55).

Alternatives & Amendments

No alternatives discussed. The Treasurer noted that "bullets" (securities that stay until maturity) are not currently being purchased due to poor rates, leading to heavy reliance on "callables" that must be reinvested frequently (00:10:21).

Outcome, Vote, and Next Steps

No action taken; item was informational.

County and Special Purpose District Debt Reports

Metadata

  • Time Range: 00:13:02–00:16:18
  • Agenda Item: Not Stated (Debt Report)
  • Categories: debt, budgeting

Topic Summary

The total ending balance of county and Special Purpose District (SPD) debt was reported at $160,029,000. School District 50 refunded some debt, resulting in a savings of approximately $1.89 million, and subsequently issued new bonds. County debt remains steady at $6,039,000, as no county debt payments were due this quarter. A significant future debt consideration is the payoff of the 2024 GAN (line of credit for the sewer project), which is due on 12-1-26 and totals $3,144,000 in principal.

Key Discussion Points

  • The total ending balance for all county and SPD debt is $160,029,000 (00:13:07–00:13:17).
  • School District 50 refunded some debt, saving about $1.89 million (00:13:17–00:13:20). They subsequently had new bonds issued (00:13:32–00:13:36).
  • County debt remains at $6,039,000 (00:13:20–00:13:25).
  • A Statement of 30 Years is provided for the annual report, showing interest and principal payments by year for the first 5 years and 5-year increments thereafter (00:13:51–00:14:05).
  • The county debt portion committed to by JEFCOM is paid out of their communication sales tax (00:14:12–00:14:20).
  • The largest portion of the Jefferson County debt is the 2024 GAN (sewer line of credit), which must be paid off by 12-1-26 (00:15:00–00:15:05).
  • The JEFCOM portion is scheduled to be matured and paid off by 12-1-23rd (00:15:05–00:15:20).
  • The principal due on the 2024 GAN is $3,144,000 on 12-1-26 (00:15:42). This debt was used to address cash flow while building the sewer project, funded by grants (00:15:58–00:16:08).

Public Comments

No public comment on this topic.

Supporting Materials Referenced

Supporting charts were referenced, including a visual breakdown of the JEFCOM portion and the 2024 GAN line of credit payoff.

Financials

  • Total Debt Ending Balance: $160,029,000
  • School District 50 Refunding Savings: ~$1.89 million
  • County Debt Remaining Balance: $6,039,000
  • 2024 GAN Principal Payoff: $3,144,000 (due 12-1-26)

Alternatives & Amendments

No alternatives discussed.

Outcome, Vote, and Next Steps

No action taken; item was informational.

2026 Finance Committee Meeting Schedule

Metadata

  • Time Range: 00:16:27–00:26:52
  • Agenda Item: 2026 Meeting Schedule
  • Categories: operations, planning

Topic Summary

The committee discussed the format of the 2026 quarterly meetings. Since 2025, meetings have been held jointly with the full Board of County Commissioners (BOCC) to allow all three commissioners to attend and maintain continuity. The Treasurer presented two options: returning to the statutory Finance Committee members only, or continuing the joint special meetings with the full BOCC. Due to the benefits of continuity, full board participation, and utilizing county facilities/technology, the committee unanimously voted to continue the joint format, designating them as regular joint meetings (not special meetings) on the last Monday of January, April, July, and October 2026 at 3:00 PM.

Key Discussion Points

  • The 2025 meetings were scheduled as joint meetings with the full board to allow all three County Commissioners to attend (00:16:40–00:16:49).
  • The Finance Committee is statutorily established, limiting its membership (Treasurer, Auditor, and Chair of the BOCC) to debt and investments (00:17:32–00:17:40). The County Administrator serves as a non-voting member as specified in the debt policy, not statute (00:17:50–00:18:02).
  • RCW requires the committee to meet regularly (00:19:16). They currently meet quarterly.
  • Option 1: Return to Finance Committee members only on the fourth Tuesday of January, April, July, and October (00:19:42–00:19:54).
  • Option 2 (Preferred): Continue joint meeting with the full board on the last Monday of the month in January, April, July, and October (00:20:34–00:20:53).
  • (Speaker Unidentified/Likely BOCC) expressed preference for joint meetings for the sake of continuity and education (00:20:53–00:21:29).
  • It was clarified that if scheduled jointly, the meetings should be designated as regular meetings of both the Finance Committee and the BOCC, not "special" meetings, to avoid limitations on adding topics to the agenda (00:22:05–00:22:28).
  • The committee agreed to keep the meeting time at 3:00 PM (00:24:36–00:24:44).

Public Comments

No public comment on this topic.

Supporting Materials Referenced

The informational sheet included the RCW pertaining to the Finance Committee and a list of proposed dates for both options.

Financials

No financial information discussed.

Alternatives & Amendments

  • Alternative 1: Returning to committee members only (rejected).
  • Amendment: The motion was friendly-amended to remove the word "special" to designate the outcome as a regular joint meeting following clarification from the committee (00:25:44–00:26:20).

Outcome, Vote, and Next Steps

  • Decision: The Finance Committee members will hold a joint meeting with the full Board of County Commissioners for quarterly meetings on the last Monday of January, April, July, and October 2026.
  • Vote: Unanimous (00:26:35).
  • Next Steps:
  • - County Administrator's Office/Treasurer's Office: Coordinate meeting dates and logistics for the 2026 calendar for publication.

Future Agenda Items Discussion

Metadata

  • Time Range: 00:26:52–00:30:24
  • Agenda Item: Future Agenda Items
  • Categories: planning, debt

Topic Summary

The committee discussed potential future agenda items focusing on debt strategy and education. Key areas requested for future discussion include the criteria and mechanism for choosing debt financing (like bond issues) over other funding sources, anticipated needs for future debt (especially regarding housing and capital projects), and an overall educational review of the different types of debt, security (collateral) used, and who can access debt (e.g., Public Works vs. DCD). The Treasurer agreed to invite Sean to discuss the capital plan in relation to future debt discussions.

Key Discussion Points

  • Discussion was raised about celebrating the payoff of JEFCOM debt within the next 5 years (00:26:52–00:27:02).
  • A request was made to better understand the avenues for debt taken by various departments, such as Public Works or DCD (00:27:23–00:27:33).
  • (Speaker Unidentified/Likely BOCC) requested to learn the criteria and circumstances under which the county would choose debt over any other funding source (00:27:41–00:27:56).
  • A need was expressed to discuss anticipated debt for future projects, specifically housing or capital planning (00:28:44–00:29:19).
  • Future topics should include:
    • County debt and longer-term plans (00:28:10).
    • Funding options and decision-making matrix/rubric (00:28:17–00:28:29).
    • Types of debt and what is used as security for them (00:29:56–00:30:04).
  • The Treasurer suggested inviting Sean to discuss the capital plan in relation to debt (00:30:04).

Public Comments

No public comment on this topic.

Supporting Materials Referenced

No supporting materials referenced.

Financials

No financial information discussed.

Alternatives & Amendments

No alternatives discussed.

Outcome, Vote, and Next Steps

  • Decision: No formal action; discussion directed future agenda planning.
  • Next Steps:
  • - Treasurer's Office/Staff: Prepare future agenda items on debt decision-making, types of debt, and anticipated debt needs.
  • - Treasurer's Office: Coordinate an invitation to Sean for discussion on the capital plan.

Committee Roles Clarification and Adjournment

Metadata

  • Time Range: 00:30:24–00:31:21
  • Agenda Item: Adjournment
  • Categories: operations

Topic Summary

A point of clarification was raised regarding the roles of the chairs. It was confirmed that the Treasurer is the chair of the Finance Committee, while the Chair of the Board of County Commissioners (BOCC) is the member of the Finance Committee mandated by statute. The agenda having been exhausted, the Finance Committee meeting was adjourned.

Key Discussion Points

  • (Speaker Unidentified) asked for clarification about who is the chair, noting that the Treasurer is the chair of the Finance Committee (00:30:31–00:30:35).
  • It was confirmed that the Treasurer chairs the Finance Committee, and the Chair of the BOCC is the statutorily designated BOCC member of the committee (00:30:50–00:30:52).

Public Comments

No public comment on this topic.

Supporting Materials Referenced

No supporting materials referenced.

Financials

No financial information discussed.

Alternatives & Amendments

No alternatives discussed.

Outcome, Vote, and Next Steps

  • Decision: The Finance Committee meeting was adjourned (00:31:11–00:31:21).
  • Vote: Not recorded.
  • Next Steps: No next steps specified.