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Home My WebLink AboutKing County - Public Financial ReportKCIT DCE File: 2107_11530L_CAFR_covers.ai Printed on recycled paper. Please recycle 20 20POPULAR ANNUAL FINANCIAL REPORT January 1 - December 31, 2020 King County, Washington January 1 - December 31, 2020 King County, Washington January 1 - December 31, 2020 King County, WashingtonFinance and Business Operations DivisionFinance andBusiness Operations Division 520 5 167 90 405 5 90 18 05 Miles N PugetSound Kent Bellevue Vashon Island KirklandRedmond Sammamish Duvall WoodinvilleBothellLakeForestParkKenmore Mercer Island Renton Newcastle Tukwila Seattle Seattle Burien SeaTac IssaquahSnoqualmie Skykomish Carnation North Bend Shoreline FederalWay Auburn Des NormandyPark BlackDiamond Maple ValleyCovington Enumclaw By J o e M a b e l , C C B Y - S A 4 . 0 , co m m o n s . w i k i m e d i a . o r g / w / i n d e x . p h p ? c u r i d = 7 4 5 0 5 7 7 3 Moines KING COUNTY PIERCE COUNTY SNOHOMISH COUNTY KITSAP COUNTY KITTITASCOUNTY CHE LAN COUNT Y ABOUT KING COUNTY Land Area (Square Miles) 2,132 Miles of Paved Roads 1,415Bridges 185 Building Permits Issued 835 Number of Parks 239 Acres of Parks 174,599Number of Buses 1,404Annual Bus Trips (in thousands) 59,869 Wastewater Treatment Plants 5 2020 FINANCIAL DATA (in millions) Assessed Valuation $642,490 Property Taxes Levied $1,044 General Fund 2019-2020 (Biennial Appropriation) $2,044 DEMOGRAPHICS 2020 2019PopulationN/A 2,252,782 - 65 years & over 304,125 297,367 Births N/A 24,090 Deaths N/A 13,463 Public School Enrollment 292,651 306,397 Private School Enrollment 34,758 42,794 Median Household Income 94,974 89,418 Unemployment 7.6% 2.8% 2020 PRINCIPAL EMPLOYERS BY INDUSTRYTotal: 1,385,233 employees King CountyCourthouseAdministrationBuilding King County has 39 incorporated cities and is the 13th most populous county in the U.S. King County at a glance Trade, Transportation and Utilities Professional and Business Education Government Leisure & hospitality Information Manufacturing Construction Financial Activities Other 276,000 234,733 180,383 171,650 127,925 101,683 95,117 76,792 72,492 48,458 KingCounty SEATTLE WASHINGTON STATE OTHER ELECTED OFFICIALS Prosecuting Attorney: Daniel T. Satterberg Assessor: John Wilson Elections Director: Julie Wise Presiding Judge–Superior Court: Jim Rogers Chief Presiding Judge–Distict Court: Susan Mahoney King County Executive Dow Constantine From left to right: Council Vice Chair Joe McDermott (District 8), Councilmember Kathy Lambert (District 3), Councilmember Girmay Zahilay (District 2), Council Chair Claudia Balducci (District 6), Councilmember Dave Upthegrove (District 5), Councilmember Jeanne Kohl-Welles (District 4), Council Vice Chair Reagan Dunn (District 9), Councilmember Pete von Reichbauer (District 7), and Councilmember Rod Dembowski (District 1). King County Government King County has the largest population of all counties in Washington State and is the financial, economic, and industrial center of the Pacific Northwest. Located between Puget Sound and the Cascade Mountains, King County ranks 11th in geographical size among 39 counties in the state and is larger than the states of Rhode Island or Delaware. With over two million people, it’s the 13th most populous county in the nation. King County is organized under the executive-council form of county government. The Metropolitan King County Council is the policy- making legislative body while the Executive serves as the CEO. The Executive presents to the County Council annual statements of the County’s financial and governmental affairs, proposed budgets, capital improvement plans, and authorizes the signing of all deeds and contracts (on behalf of King County) as well as appoints the director of each executive department. The judicial branch of the County is represented by the courts (District Court, Superior Court) and Prosecuting Attorney. King County delivers critical services to both incorporated and unincorporated areas. While some services are provided only to unincorporated areas, cities and other incorporated areas can contract with King County for individual services like law enforcement. King County, Washingtonii TABLE OF CONTENTS King County’s Major Initiatives . . . . . . . . . . . .2 Our Equity and Social Justice Lens . . . . . . . . .3 2020 Accomplishments . . . . . . . . . . . . . . . . . . .4 Local Economy . . . . . . . . . . . . . . . . . . . . . . . . . . .5 King County’s Finances Statement of Net Position . . . . . . . . . . . . . . . . .6 Activities/Changes in Net Position..........7 Revenues by Source.......................8 Expenses by Function .....................8 General Fund Highlights...................9 The Capital Base .........................10 Borrowing and Leveraging................10 COVID-19................................11 Property Taxes ...........................12 Definitions of Terms . . . . . . . . . . . . . . . . . . . . .13 King County at a Glance . . . . . . . . . .back cover Prepared by: Eben Sutton, MAcc Lillian L. Bushnell, CPA Suzanne Ridley Trinh Nguyen, MSA, CPA Questions, comments and suggestions: help.genacctg@kingcounty.gov Design: Laurel Preston, Senior Visual Designer, KCIT Design & Civic Engagement Cover photo: Marymoor Park, Redmond by Eli Brownell, King County Parks View or download pdf at: kingcounty.gov/PAFR Department of Executive ServicesFinance and Business Operations Division Financial Management Section Department of Executive ServicesFinance and Business Operations Division Financial Management Section Alternative formats available. Please call 206-263-2353 or TTY: 711 Welcome to King County’s Popular Annual Financial Report (PAFR) for fiscal year 2020. The PAFR provides a high-level overview of King County’s financial affairs and a snapshot of how we serve our residents, including successes and challenges as we navigated in our ever-changing economic, social, and political climate in 2020. The PAFR provides an overview of the County’s financial condition, analyzing where revenues come from and how dollars are spent. The financial data provided is for King County departments (what accountants call the “primary government”) and is divided into governmental and business-type activities (some exclusions are legally separate entities and fiduciary funds). Please see page 13 for definitions of these activities. While the PAFR is not audited, the financial information reported is based on the audited 2020 Comprehensive Annual Financial Report. If you would like more detailed financial reporting and operational information including important Notes to the Financial Statements, please access the Annual Report at: kingcounty.gov/ACFR. We would love to hear what you think. Please let us know how we can make this report better – your feedback is important to us. 2020 POPULAR ANNUAL FINANCIAL REPORT January 1 - December 31, 2020 • King County, Washington 2020 Popular Annual Financial Report 1 INCOMINGENERGY TRAPPEDENERGY ATMOSP H E R E SUN lanes of trac During peak commute hours, Metro frees up the equivalent of... King County INVESTS... Upstream,where needsare greatest, with transparent and accountable leadership. incommunitypartnerships, and inemployees, King County’s Major Initiatives At King County, our work is guided by our True North and Values. Our True North is what we aspire to: Making King County a welcoming community where every person can thrive. Major initiatives helping us accomplish this goal include those listed below. Best-run Government: King County embraces continuous improvement, instituting best management practices, encouraging front-line employees to innovate and strive for excellent customer service. Building Equity and Opportunity: King County includes pro-equity policy direction, decision-making, planning, operations and services, and workplace practices in order to advance equity and social justice within County government and in partnership with communities. Confronting Climate Change: Our government works to reduce greenhouse gas emissions and prepare for climate change impacts to our health, safety, economy, and environment. The County has committed to cutting countywide greenhouse gas emissions by 50% by the end of the decade. We’re also making our community more resilient to climate change impacts through research, changes in how we plan and design major infrastructure, and community partnership. Regional Mobility: Our network of regional roads, our integrated Metro bus and rail transit and water taxi services all work together to help move people better and connect communities. As we continue to grow, public transportation will play an important role in reducing congestion, protecting our environment, and getting more people where they need to go. 2019 Coronavirus Disease (COVID-19) Response and Recovery: The COVID-19 pandemic has dominated our focus this year. We led the response to the nation’s first outbreak of the disease. King County employees have been working to help those we serve to beat this disease and its economic impact. King County, Washington2 kingcounty.gov/equity KING C O UNT Y EQUIT Y AND S O CIAL JUST I CE S T R ATEGIC P L A N structural racism and discrimination class and gender bias lack of access to resources and decision-making cross-generational inequities dilapidated housing poor quality schools disproportionality in justice system unsafe neighborhoods no insurance or quality healthcare unemployment & low wage work food insecurity limited & unsafe parks pollution & toxic exposures absence of community economic development incarceration low birth weightunemployed and underemployed homelessness obesity health problems untreated mental illness aordable & safe housing living wage jobs & job training safe & supportive neighborhoods information & technologyhealth care & human services parks & natural resources quality education & early learning healthy food & food systems equitable justice system healthy built & natural environments community economic development transportation high quality of life good health economic well-being healthy years lived happiness & satisfaction civic engagement educational success pro-equity policies, practices and values such as:inclusion racial justice structural racism and discrimination class and gender bias lack of access to resources and decision-making cross-generational inequities dilapidated housing poor quality schools disproportionality in justice system unsafe neighborhoods no insurance or quality healthcare unemployment & low wage work food insecurity limited & unsafe parks pollution & toxic exposures absence of community economic development incarceration low birth weightunemployed and underemployed homelessness obesity health problems untreated mental illness aordable & safe housing living wage jobs & job training safe & supportive neighborhoods information & technologyhealth care & human services parks & natural resources quality education & early learning healthy food & food systems equitable justice system healthy built & natural environments community economic development transportation high quality of life good health economic well-being healthy years lived happiness & satisfaction civic engagement educational success pro-equity policies, practices and values such as:inclusion racial justice THEORY OF CHANGE 12 HOW KING COUNTY IS BUILDING EQUITY... RACE AND PLACE MATTER IN KING COUNTY. People of color, low-income residents and immigrants and refugees persistently face inequities in key areas, such as education, income and health. THE “UNHEALTHY STREAM” CREATES INEQUITIES POLICIES, PRACTICES & SYSTEMS– Policies, structures and systems – including those in government – have sustained and even contributed to inequities THE “HEALTHY STREAM” CREATES EQUITY PRO-EQUITY POLICIES, PRACTICES & SYSTEMS– For greatest and most e ective impact, King County is focusing “upstream” to address root causes and be pro-equity OUTCOMES– Organizations and their programs historically have tended to react to problems and treat poor individual and family-level outcomes CONDITIONS– Past policies, systems and practices have resulted in adverse social, physical and economic conditions OUTCOMES– Individuals and families thrive regardless of race and place CONDITIONS– Pro-equity systems and policies result in improved community conditions, also known as “determinants of equity” King County government has made strides for more than a decade to integrate equity and social justice (ESJ) in how we do our work, guided by long-standing community wisdom. In acknowledging and responding to centuries-long crisis of systemic racism and colonialism, King County declared racism a public health crisis in June of 2020 and initiated a set of investments to “disrupt and dismantle racism and protect the health and well-being of Black, Indigenous People and People of Color” in alignment with our ESJ Theory of Change: Advancing Equity, Racial and Social Justice 2020 Popular Annual Financial Report 3 King County is dedicated to undoing the burdens of systemic racism, and ensuring every person has the opportunity to thrive. King County has rededicated our policy, budget, and resources to ending systemic racism in our community, and committed to being intentionally anti-racist and accountable to Black, Brown, Indigenous, and People of Color. https://kingcounty.gov/depts/elections/about-us/ year-in-review/2020.aspx King County responded to the summer’s wildfire smoke by opening smoke shelters to provide a safe place for those who needed it. The 2020 Strategic Climate Action Plan is part of how we’ll protect our air and water. The plan includes cutting greenhouse gas emissions in half by the end of the decade, a stronger focus on climate justice, and preparing the region for climate impacts. King County partnered with community organizations around the region to ensure high participation in the 2020 Census. King County surpassed our previous participation records in many communities, ensuring a fair count of our population to be used in redistricting, allocating federal funding, and more. 2020 Accomplishments King County is dedicated to undoing the burdens of systemic racism, and ensuring every person has the opportunity to thrive. King County has rededicated our policy, budget, and resources to ending systemic racism in our community, and committed to being intentionally anti-racist and accountable to Black, Brown, Indigenous, and other People of Color. King County Metro is one step closer to an all-electric bus fleet with an order for 40 battery-powered buses and plans to purchase 80 more. These 60-foot articulated buses have the range to serve almost any route in King County. This year Metro retired the last of its remaining diesel-powered buses as part of the effort to become a zero-emission transit agency. COVID-19 Response and Recovery In February, King County experienced the first COVID outbreak in the United States at a long-term care facility in Kirkland. County employees from many agencies have worked tirelessly since, deploying resources, setting up public testing sites, answering questions from businesses, and doing everything possible to keep King County residents healthy. Despite the COVID-19 pandemic King County had record breaking turn out for both the in primary election in March at 56% and the general election in November at 87%. King County Elections eased voter access for every eligible voter and increased safety by expanding ballot drop box locations, use of vote-by-mail. Voter registration increased in 2020 by 130,000 for a total of 1.4 million registered voters. King County, Washington4 Local Economy Economic factors have a direct impact on King County’s revenues, which are sensitive to the performance of both regional and local economies. Income, employment, market forces, investment, and inflation influence property tax assessments, retail sales and real estate transactions. Employment in King County decreased due largely to impacts from the COVID-19 pandemic with the largest impact in the leisure and hospitality sectors. Inflation remained steady in 2020. The Seattle Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI- W-STB) increased 1.9 percent, down from 2.1 percent in 2019. The national CPI for All Urban Consumers (CPI-U-US) increased 1.2 percent during the same period. Consumer confidence and spending declined in 2020 due to economic effects of the global pandemic. Taxable sales in the county decreased 8 percent in 2020. Taxable sales growth indicators have rebounded significantly since Q2 2020. The County expects growth to resume in 2021 and beyond. 2020 Population 2,252,782 (From 2019 2,635,516 3,338,330 4,367,835 2020 Population Density (per sq. mile)1,055 3,024 794 479 2020 65 Years and Older Population 304,125 292,542 484,058 677,014 2020 Median Household Income 94,974 59,607 78,980 64,468 2020 Unemployment Rate 7.6%7.7%9.3%7.4% KING COUNTY WASHINGTON MARICOPA COUNTYARIZONADALLAS COUNTYTEXAS DEMOGRAPHICS OF KING COUNTY AND THREE OTHER COUNTIES WITH SIMILAR POPULATION SAN DIEGO COUNTYCALIFORNIA WashingtonState USA* MEDIAN ANNUAL HOUSEHOLD INCOME 2018 2019 2020 King County $73,294 $74,992 $81,668 $83,571 $89,418 $94,974 $61,937 $65,712 $0 $20,000 $40,000 $60,000 $80,000 $100,000 *2020 USA median annual household income not available at time of publication WashingtonState USA UNEMPLOYMENT RATEMEDIAN ANNUAL HOUSEHOLD INCOME 2018 2019 2020 King County 4.5%4.3% 8.4% 3.5%2.8% 7.6% 3.9% 8.1% 2.5% 3.5% 4.5% 5.5% 6.5% 7.5% 8.5% 3.7% 2020 Popular Annual Financial Report 5 Statement of Net Position (in Millions) Governmental Activities*Business-type Activities*Total 20182019 2019 2019 $1,506 6,246 798 8,550 255 4,841 240 5,081 144 2,268 286 1,026 $3,580 2018 Sources: 2020 ACFR MD&A and Entity-wide Statement of Net Position (for Cash and cash equivalents) *Prior year ﬁgures have been restated due to updated information received subsequent to the publication of 2019 PAFR. .. ASSETS Cash and cash equivalents Capital assets Other assets Total Assets DEFERRED OUTFLOWS OF RESOURCES LIABILITIES Long-term liabilities Other liabilities Total Liabilities DEFERRED INFLOWS OF RESOURCES NET POSITION Net investment in capital assets Restricted Unrestricted Total Net Position $1,577 3,574 475 5,626 133 1,323 629 1,952 109 2,935 926 (163) $3,698 2020 2020 20202018 $2,027 6,225 1,036 9,288 245 4,881 269 5,150 110 2,310 247 1,716 $4,273 $3,604 9,799 1,511 14,914 378 6,204 898 7,102 219 5,245 1,173 1,553 $7,971 $1,456 3,426 386 5,268 99 1,329 410 1,739 166 2,799 775 (112) $3,462 $1,347 3,295 221 4,863 87 1,407 213 1,620 152 2,604 779 (205) $3,178 $1,701 6,304 798 8,803 244 4,847 289 5,136 155 2,393 269 1,094 $3,756 $3,157 9,730 1,184 14,071 343 6,176 699 6,875 321 5,192 1,044 982 $7,218 $2,853 9,541 1,019 13,413 342 6,248 453 6,701 296 4,872 1,065 821 $6,758 Statement of Net Position The statement of net position presents all of King County’s assets, deferred outflows of resources, liabilities, and deferred inflows of resources, with the difference reported as the net position. The County’s fiscal year runs simultaneously with the calendar year (January 1 to December 31). Over time, increases or decreases in the County’s net position may be an indication of whether the financial situation of the County is improving or deteriorating. The County’s statement of net position for fiscal years ending December 31, 2018 - 2020 is shown in the chart below. $6,758 $7,218 $7,971 2018 2019 2020 TOTAL NET POSITIONIN MILLIONS King County’s overall net position increased 10.4 percent or $753 million from the prior fiscal year. The three components of net position are: Net Investment in Capital Assets: The most significant portion of net position (65.8 percent or $5.2 billion) is invested in capital assets. King County uses these capital assets to provide a variety of public goods and services to its citizens. For that reason, these assets are not available for future spending. King County’s investment in capital assets is reported net of related debt. Restricted Net Position: This portion of net position (14.7 percent or $1.2 billion) is restricted, representing funds that are limited to construction activities, payment of debt, or specific programs by law. Unrestricted Net Position: The remaining portion of net position (19.5 percent or $1.6 billion) is unrestricted, representing resources that are available for services. King County, Washington6 KING COUNTY’S FINANCES, CONTINUED King County, Washington6 Activities/Changes in Net Position The statement of activities shows how King County’s net position changed during the year reported, and shows total revenues earned and expenses incurred. When revenues exceed expenses, the County’s net position increases. If expenses were to exceed revenues, net position would decrease. In 2020, the County’s revenues exceeded expenses by $753 million. REVENUES Program revenues(a) General revenues(a) Total Revenues EXPENSES General government Public safety Economic environment(a) Mental and physical health Other governmental activities(a) Public transportation Solid waste Water quality Other business-type activities(a) Total Expenses Increase in net position before transfers and special items Transfers Increase in net position Net position, beginning of year(b) Net position, end of year Changes in Net Position (in Millions) Governmental Activities 2019 Business-type Activities Total 2018 2020 202020182019 20182019 $1,080 1,261 2,341 193 727 172 746 226 - - - - 2,064 277 7 284 3,178 $3,462 $1,200 767 1,967 - - - - - 1,032 234 475 43 1,784 183 (7) 176 3,580 $3,756 $1,260 704 1,964 - - - - - 825 155 487 38 1,505 459 (5) 454 3,126 $3,580 Source: 2020 ACFR MD&A (a) 2020 revenues and expenses were adjusted for the corresponding eects of the restatements of beginning net position (b) Beginning net position for 2019 has been restated due to updated information received subsequent to the publication of 2019 PAFR. 2020 $1,211 1,562 2,773 248 819 264 973 239 - - - - 2,543 230 6 236 3,462 $3,698 $1,535 708 2,243 - - - - - 1,055 136 481 48 1,720 523 (6) 517 3,756 $4,273 $2,746 2,270 5,016 248 819 264 973 239 1,055 136 481 48 4,263 753 - 753 7,218 $7,971 $2,280 2,028 4,308 193 727 172 746 226 1,032 234 475 43 3,848 460 - 460 6,758 $7,218 $1,092 1,207 2,299 173 697 241 702 209 - - - - 2,022 277 5 282 2,896 $3,178 $2,352 1,911 4,263 173 697 241 702 209 825 155 487 38 3,527 736 - 736 6,022 $6,758 Descriptions of Government Activities and Business-type Activities are on page 13. Revenues Expenses COUNTY REVENUES & EXPENSES IN MILLIONS 2018 2019 2020 $4,263 $4,308 $5,016 $3,527 $3,848 $4,263 Prior year figures have been restated Revenues shown as Program Revenues would disappear if the program or function were eliminated. On the other hand, General Revenues come from taxes or other revenues available to the County. 2020 Popular Annual Financial Report 7 KING COUNTY’S FINANCES, CONTINUED 2020 Popular Annual Financial Report 7 Go v e r n m e n t a l A c t i v i t i e s Bu s i n e s s - t y p e A c t i v i t i e s KING COUNTY EXPENSES IN MILLIONS $0 $200 $400 $600 Physical Environment Interest andDebt Service Culture and Recreation Transportation Economic Environment General Government Law, Safety, and Justice Health and Human Services Other Enterprise Activities SolidWaste WaterQuality PublicTransportation $800 $1,000 201820192020 $22 $18 $94 $105 $248 $264 $819 $973 $48 $136 $481 $1,055 $73 $23 $46 $245 $838 $885 $1,043 $1,863 Unrestrictedinterest earnings Other taxes Capital grantsand contributions Operating grants and contributions Retail sales and use taxes Propertytaxes Charges for services KING COUNTY REVENUES IN MILLIONS $0 $400 $800 $1,200 $1,600 $2,000 202020192018 Coronavirus relief funds Expenses by Function King County provides some services regionally and others exclusively to unincorporated areas. Some are available for cities to purchase on a contractual basis. The table on page 13 lists the major services provided by the County while the graphs to the right present a three-year comparison of their expenses. The most substantial County expenses from governmental activities in order: • Health and Human Services • Law, Safety, and Justice • Economic Environment • General Government The largest dollar increase in 2020 occurred in Health and Human Services, which increased by 30.4 percent ($227 million) from 2019. Revenues by Source The largest revenue increases in 2020 by dollar were Operating grants and contributions which increased more than three-fold to $838 million. This is followed by Coronavirus relief funds which increased $245 million. Revenue increases were primarily driven by pandemic-related federal mitigation and stimulus payments. Overall, revenues for the County increased 16.4 percent ($708 million) from last year. King County, Washington8 KING COUNTY’S FINANCES, CONTINUED King County, Washington8 $500 $0 $1,000 2018 2019 2020 $863 $916 $992 Property taxes Charges for services Retail sales anduse taxes Fines and forfeits Intergovernmental revenues Other revenues GENERAL FUND REVENUE IN MILLIONS General Fund Highlights The General Fund serves as the chief operating fund of the County which is where most traditional operating departments reside. These include the County Executive and County Council, Sheriff, Superior Court, Elections, and Judicial Administration. About three-quarters of the General Fund is spent on law, safety and justice. At the end of 2020, the total fund balance was $201 million, an increase of 9.2 percent or $17 million over the prior year. Notable increases occurred in Intergovernmental revenue due to the pandemic-related federal mitigation and stimulus payments. As a measure of liquidity, the size of the unassigned fund balance totaled $133 million, a decrease of 6.3 percent over the prior year. The size of the unassigned fund balance is often compared relative to total expenditures, which gives 15.5 percent, a 1.6 percent decrease from last year. This represents a buffer that the fund can use to finance spending in the first few months of the following period. In the long-term, the General Fund continues to face financial challenges due to a structural imbalance between the limited rate of property tax growth (1.0 percent plus the taxes on new construction) and the combined rate of inflation and population growth (typically around 4.0 percent). While the County searches for more permanent solutions, it balances the budget each biennium through service reductions, gains in efficiencies, rate increases, and other fiscal strategies. 67.6%0.0%1.1%1.3% 5.7 5.1 5.2 4.1 20.8%55.4%16.0%29.1% 2020 Ratio of Bus-type to Governmental Expenses 2020 Current Ratio (Liquidity) 2020 Percent Revenue from Property Taxes FINANCIAL DATA OF KING COUNTY AND THREE OTHER COUNTIES WITH SIMILAR POPULATION KING COUNTY WASHINGTON MARICOPA COUNTY ARIZONA DALLAS COUNTY TEXAS SAN DIEGO COUNTY CALIFORNIA 2020 Popular Annual Financial Report 9 KING COUNTY’S FINANCES, CONTINUED 2020 Popular Annual Financial Report 9 2020 MAJOR CAPITAL ASSET EVENTS $0 $1,000 $2,000 Construction in progress Equipment, software and art collections Infrastructure: other Infrastructure: roads and bridges Buildings Land and land rights KING COUNTY CAPITAL ASSETS IN MILLIONS $1,037 $1,141 $1,431 $1,615 $1,788 $2,345 $0 $5,000 KING COUNTY BONDS OUTSTANDING IN MILLONS 202020182019 GO Bonds Revenue Bonds State Revolving Loans The Capital Base The County utilizes capital assets to provide vital services and enhance the quality of life of its citizens. This includes the industrial- scale plants for wastewater treatment and waste disposal, the infrastructure network of roads and bridges, multi-modal transportation facilities, open space land, land rights, and buildings. The County’s capital assets, net of depreciation, at the end of 2020 increased by 0.7 percent from last year to a new net book value of $9.8 billion. Borrowing and Leverage At the end of 2020, the County had a total of $5 billion in long-term debt outstanding, comprised of $2 billion in general obligation (GO) bonds, $3 billion in revenue bonds, and $247 million in loans from the State of Washington for public works construction activities. The total amount of bonds outstanding has dropped in each of the last three years. GO bonds are backed by the full faith, credit and taxing power of the government while revenue bonds are secured by specific revenue sources such as sewer fees and lease payments. The County uses revenue bonds to finance the major portion of its wastewater treatment facilities. The County maintained a rating of “Aaa” from Moody’s, a rating of “AAA” from Standard & Poor’s, and a rating of “AAA” from Fitch for both its limited tax general obligation debt and unlimited tax general obligation debt. The ratings for Water Quality Enterprise’s revenue debt are “Aa1” from Moody’s and “AA+” from Standard & Poor’s. Costs for the parking garage for the newly completed Patricia H. Clark Child and Family Justice Center totaled $21 million in 2020. The parking garage is scheduled to be completed by the spring of 2021. Public Transportation brought 125 new ADA vans and Accessible Buses into service during the year at a cost of $10 million. Water Quality brought new infrastructure into service during the year at a total cost of $30 million, including $28 million for a section of the Eastside Interceptor. Puget Sound Emergency Radio Network (PSERN) is engaged in replacing the existing radio system that is over 20 years old. The new system as a whole will provide improved coverage, capacity, capability and connectivity in PSERN’s regional service area. The total estimated project cost is $274 million; $142 million has been spent through 12/31/2020. The radio network is anticipated to be operational in 2023. King County, Washington10 KING COUNTY’S FINANCES, CONTINUED King County, Washington10 COVID-19 Response and Recovery Following the arrival of a novel coronavirus in the County on January 20, 2020 which quickly resulted in an emergency declaration on March 1, 2020, nothing would proceed as normal for the remainder of the year. The County’s initial efforts, which began in February before any formal declaration of emergency, included a countywide assessment of shelters, day centers, encampments, and supportive housing programs to identify resource gaps and needs in preparation for a regional response. The County intensified its efforts to identify isolation and quarantine facilities to prevent overloading of the healthcare system and slow the spread of the virus. By March, school districts began to close, and the County recommended that everyone able to work from home do so. The second quarter focused on increasing testing and distribution of personal protective equipment (PPE). The County’s Emergency Operations Center (EOC) was able to extend the provision of PPE from Tier 1 services (emergency medical services, hospitals, and long-term care facilities) to Tier 2 services (other group settings like homeless shelters, isolation facilities, and behavioral health residential facilities), a notable achievement. The third quarter saw the County emerge from stay-at-home orders into Safe Start Washington, a four-phase plan of reopening businesses, recreational opportunities, and social activities. The County purchased 25 million cloth and disposable masks for distribution in the community to promote safe reopening. In addition, the County allocated $41 million of federal stimulus to create a rental assistance and eviction prevention program, benefitting more than 9,000 residents. In the fourth quarter, the County experienced a rise in cases, which peaked at about five-times the number of cases at the start of the quarter. The County launched the “Keep it Local King County”, benefitting over 600 small business with grants and technical assistance totaling $4 million. COVID-19 test site at King County’s Marymoor Park. Photo: Eli Brownell King County Public Health’s COVID-19 Website. 2020 Popular Annual Financial Report 11 KING COUNTY’S FINANCES, CONTINUED 2020 Popular Annual Financial Report 11 Property Taxes King County’s Assessor supported 119 local taxing districts during 2020. For every property tax dollar collected, 13 cents are used to support King County and 87 cents are allocated between the State, cities and other local jurisdictions. About half of property tax is determined by levies that are voter-approved for such services as schools, parks, water districts, emergency medical service, and fire/rescue, among other services. Property taxes are levied primarily on real property owned by individuals and businesses. The Assessor determines the fair market value of properties, which is intended to reflect the property’s market value. Total assessed value of taxable property increased by 5.9 percent in 2020 reaching $642 billion. 2020 PRINCIPAL PROPERTY TAXPAYERS Boeing Microsoft Amazon.com Puget Sound Energy/ Gas/Electric Essex Property Trust Union Square LLC Cities Fire, Hospital & Other Roads & Flood Districts Regional Sound Transit King County $15 $57State & Local Schools Libraries $13 $9 $2 $2 $2 WHERE EACH DOLLAR OF PROPERTY TAX GOES ASSESSED VALUE OF TAXABLE PROPERTY IN BILLIONS $0 $600 $535 $607 $642 2018 2019 2020 WHERE YOUR PROPERTY TAXES WENT King County Washington State, cities, and other local jurisdictions: levies to support schools, parks, water districts, emergency medical service and fire/rescue among others For each dollar paid in property taxes, 13¢ goes to King County’s General Fund and 87¢ goes to various agencies through voter-approved levies property tax ¢¢¢ ¢¢¢ ¢¢¢¢¢¢¢ ¢¢¢¢¢¢¢¢¢¢ ¢¢¢¢¢¢¢¢¢¢ ¢¢¢¢¢¢¢¢¢¢¢¢¢¢¢¢¢¢¢¢ ¢¢¢¢¢¢¢¢¢¢ ¢¢¢¢¢¢¢¢¢¢ ¢¢¢¢¢¢¢¢¢¢¢¢¢¢¢¢¢¢¢¢ ¢¢¢¢¢¢¢ 13¢ 87¢ $1 King County, Washington12 2020 Popular Annual Financial Report 13 OPEB stands for “Other Post-Employment Benefits” and represents the health benefits received by former employees after they retire from King County. Restricted net position is the portion of net position subject to external spending restrictions, such as state law, bond covenants or contracts. Unrestricted net position is the portion of net position not tied up in net investment in capital assets or by external legal restrictions. It is available at the government’s discretion to pay bills. Definitions of Terms Accrual basis is the method of accounting that records revenues and expenses when they are incurred, in contrast with “cash basis”, which records revenues and expenses when the cash is received or paid. (See also modified accrual basis) Assets are resources which the County owns (and therefore, controls) that can be utilized in providing services. For example, cash from tax collections is an “asset” that is used to pay salaries of police officers as they serve the community. Capital assets are the buildings, roads and bridges, plant and equipment, land and other long-lived assets that are utilized by the County in providing services to its taxpayers. Current assets include cash and assets that can be quickly turned into cash to pay this month’s bills. Deferred inflows of resources is an acquisition of net position during the year that is applicable to a future year. For example, a federal grant may be received in 2017 to reimburse the County’s incurred costs, but the grantor may restrict spending until 2018 because that is when the federal budget has appropriated them. Deferred outflows of resources is a consumption of net position during the year that is applicable to a future year. This is the opposite of deferred inflows of resources. Fund balance denotes the amount of equity in a governmental fund, and represents assets plus deferred outflows of resources, less liabilities and deferred inflows of resources. Business-type funds use the term “net position.” Government-wide reporting provides an aggregate view of the County’s financial activities consolidating governmental and business-type activities using the accrual basis of accounting. Liabilities are current obligations to use resources that the government has little or no discretion to avoid, such as payments owed to suppliers. Long-term liabilities include items such as bonds, loans, pension contributions and other obligations due more than one year in the future. Modified accrual basis is the method of accounting used for governmental funds, and focuses on whether those funds have sufficient resources to pay their bills in the short-term. Net investment in capital assets is the portion of net position that represents the historical cost of capital assets less the amount of debt used to acquire them. A loose analogy can be made to the equity in one’s home under a mortgage. Net position is the residual of all other financial statement elements found in accrual basis statements: the difference between a) assets plus deferred outflows of resources; and b) liabilities plus deferred inflows of resources. List of Services GOVERNMENTAL ACTIVITIES General Government: Executive and council functions, elections and assessments, records and licensing, performance strategy and budget, information and technology Health and Human Services: Community mental health, communicable diseases, environmental health, public health clinics and programs, alcoholism treatment, drug abuse prevention, regional hazardous waste management Law, Safety and Justice: Sheriff’s office, prosecuting attorney, superior court, public defense, judicial administration, adult and juvenile detention, emergency medical services Transportation: Road services, roads capital program Economic Environment: Youth employment, development and environmental services, planning and community development, river improvement, animal control, river and flood control construction, natural resources Physical Environment: Surface water management Culture and Recreation: Parks, art and cultural development, historical preservations, law library BUSINESS-TYPE ACTIVITIES Public transportation, wastewater treatment, solid waste disposal and recycling, airport, institutional network, radio communications and water taxi 520 5 167 90 405 5 90 18 0 5 Miles N Puget Sound Kent Bellevue Vashon Island Kirkland Redmond Sammamish Duvall WoodinvilleBothellLakeForestParkKenmore Mercer Island Renton Newcastle Tukwila Seattle Seattle Burien SeaTac Issaquah Snoqualmie Skykomish Carnation North Bend Shoreline FederalWay Auburn Des NormandyPark BlackDiamond MapleValleyCovington Enumclaw By J o e M a b e l , C C B Y - S A 4 . 0 , co m m o n s . w i k i m e d i a . o r g / w / i n d e x . p h p ? c u r i d = 7 4 5 0 5 7 7 3 Moines KING COUNTY PIERCE COUNTY SNOHOMISH COUNTY KITSAP COUNTY KITTITAS C O U NTY CH EL AN C O UNT Y ABOUT KING COUNTY Land Area (Square Miles) 2,132 Miles of Paved Roads 1,415 Bridges 185 Building Permits Issued 835 Number of Parks 239Acres of Parks 174,599Number of Buses 1,404 Annual Bus Trips (in thousands) 59,869 Wastewater Treatment Plants 5 2020 FINANCIAL DATA (in millions) Assessed Valuation $642,490 Property Taxes Levied $1,044 General Fund 2019-2020 (Biennial Appropriation) $2,044 DEMOGRAPHICS 2020 2019 Population N/A 2,252,782 - 65 years & over 304,125 297,367 Births N/A 24,090 Deaths N/A 13,463 Public School Enrollment 292,651 306,397 Private School Enrollment 34,758 42,794 Median Household Income 94,974 89,418 Unemployment 7.6% 2.8% 2020 PRINCIPAL EMPLOYERS BY INDUSTRY Total: 1,385,233 employees King CountyCourthouse AdministrationBuilding King County has 39 incorporated cities and is the 13th most populous county in the U.S. King County at a glance Trade, Transportation and Utilities Professional and Business Education Government Leisure & hospitality Information Manufacturing Construction Financial Activities Other 276,000 234,733 180,383 171,650 127,925 101,683 95,117 76,792 72,492 48,458 KCIT-DCE file: 2108_10157L_PAFR.indd