Fiscal Note

Each piece of legislation that is financial in nature requires a fiscal note. The fiscal note should be drafted by department staff and should identify operating, capital, revenue, and FTE impacts of the legislation. After preparation by departmental staff, the Department of Finance (DOF) will review and make necessary revisions before transmittal to Council.

Department: Finance

Contact Person/Phone: Diane Clausen 4-8151

DOF Analyst/Phone: Sherri Crawford 4-8-75

Legislation Title: AN ORDINANCE related to charging a debt management fee for expenses related to the Debt Management Policy Advisory Committee, repealing Section 3.76.030 of the Seattle Municipal Code.

Summary of the Legislation: This legislation repeals the following language in the Seattle Municipal Code:

“The [Debt Management Policy Advisory] Committee is authorized to charge a debt management fee for its various services to each bond issue or other debt financing action in accordance with a schedule and at levels authorized in the Annual Budget. Such fees shall be deposited in the appropriate expenditure account in the General Fund.”

Background (Include justification for the legislation and funding history, if applicable): Current policy requires the Department of Finance (DOF) to assess a Debt Management Policy Advisory (DMPAC) fee on all revenue and general obligation debt issued by the City or guaranteed by the City. These fee proceeds are used for meeting the costs of issuance, management, and administration of debt. One problem with this method of generating revenue is that the amount of revenue generated has no necessary correlation to DMPAC expenditures. This has resulted in periodic swings in fund balances dedicated to this project.

In order to more closely tie revenue collections to DMPAC expenditure needs, and to bring this fee collection in line with the City’s general cost allocation methodology for its various central services, the Mayor’s Proposed Budget for 2003-04 collects for the expenditures of the DMPAC via a six fund allocation based on the number of revenue and general obligation bond sales over the preceding five years. This ordinance, and its companion resolution, change debt policies to conform to this new revenue collection methodology.

Public Private Partnership Review Status:

Is the project referenced in the legislation subject to P4 review? No. If yes, identify P4 review to date.

Is the legislation subject to public hearing requirements? No. If yes, what public hearings have been held to date?

Fiscal Sustainability Issues (related to grant awards):

Estimated Expenditure Impacts:

FUND (List # and/or Account)	2002	2003	2004
	0	0	0
TOTAL	0	0	0

One-time $

On-going $

Estimated Revenue Impacts:

FUND (List # and/or Account)	2002	2003	2004
	0	0	0
TOTAL	0	0	0

One-time $

On-going $

Estimated FTE Impacts:

FUND (List # and/or Account)	2002	2003	2004
	0	0	0
TOTAL	0	0	0

# Full Time

# Part Time

# TES

Do positions sunset in the future? If yes, identify sunset date?

Other Issues (including long-term implications of the legislation):