Are there any regulations related to public financing, including borrowing?

Yes, there are regulations related to public financing, including borrowing, in Washington. This includes rules that relate to the issuance of bonds by local governments, as well as regulations concerning the taxation of public debt. At the local level, Washington’s constitution does not allow local governments to issue bonds or engage in borrowing without the approval of the electorate. The state also allows local governments to use bond and tax levies as a source of public finance in order to fund public projects and services. The state also regulates the taxation of public debt, or the amount of taxes that must be paid to service the debt. In Washington, local governments must adhere to a debt cap in order to protect their citizens from unreasonable taxation. This debt cap is calculated based on a formula that takes into account the amount of money collected in revenue, the rate of population growth, and any costs associated with repaying the debt. In addition to debt cap regulations, Washington requires that local governments maintain a debt service fund to ensure that funds are available to pay the interest and principle of the debt. This fund must include at least 5% of the total debt service payments in each year. Finally, any borrowing or bond issuance must comply with state disclosure laws. These laws require that local governments provide the public with information about any public financing, including the purpose of the project, an estimation of costs, and an explanation of how the money will be used.

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