Finance committee debates cash‑flow resolution as general fund reserves fall

The King County Finance & Budget Committee on March 25 discussed a proposed resolution to authorize short‑term, bookkeeping transfers to prevent cash‑flow shortfalls before property‑tax receipts arrive.

"Our general fund general account only has $20,000,000 in it," Finance Director Kathy Hopkinson said, warning that some funds are seasonally low in May and early June before property tax payments arrive. She said the resolution would create a temporary safety valve: the finance director would determine when a transfer is needed, notify the board and return funds once taxes are collected.

Hopkinson said property taxes typically arrive in two payments (June and September), and that some funds must spend ahead of reimbursement because they are grant‑funded. She described the proposal as a short‑term, automatic process to be restored when the tax revenue replenishes the accounts.

Board members pressed for operational details. One member asked who would decide when to move funds; Hopkinson said the finance director would make the determination and report to the board. Members asked for lead time; Hopkinson said she would aim to notify the board about a month in advance and that payroll and large biweekly payments would be considered.

Committee member Juby clarified the resolution only authorizes the temporary sweep (01/12 to cover 001) and is separate from any change in the county's practice of making budgetary transfers at fiscal‑year start. Chair described the resolution as a "safety valve," not an immediate transfer this year but something the county may need in future years if cash positions worsen.

The committee did not vote on the resolution on March 25; Hopkinson said the item will return next month for further discussion and, potentially, approval. The report and the proposed language will be circulated to the board and the state's attorney for final drafting.