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

Yes, there are regulations related to public finance in Washington, including borrowing. All local governments in Washington are subject to the Local Government Budget, Financial Management and Audit Law, which sets forth borrowing requirements. This law states that a local government may borrow in anticipation of future revenues, including voter-approved bond issues, in order to finance capital projects. In addition, the law requires local governments to adopt a financial plan that meets certain criteria, including (but not limited to) an estimation of anticipated revenues and expenses for at least the following two fiscal years. Local governments must also submit the financial plan to the Office of Financial Management for review and approval before any borrowing or spending decisions can be made. Additionally, local governments must adhere to sound financial policies by taking certain steps to ensure that sufficient funds exist to make timely payments of principal and interest on any bonds that are issued. Lastly, local governments must keep detailed records of borrowing, including bills of sale, bonds, and other evidence of debt, as well as provide adequate funds in the budget to meet the payment obligations of such borrowing.

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