The Forecast Council adopted discount rates for 2022 and 2023 are:

Nominal discount rate: 4.0%
Real discount rate: 1.5%

Background

In 2017, the County adopted Motion 14803 that directed the Office of Economic and Financial Analysis (OEFA) to develop discount rates for the County.  OEFA did so and sent Resolution KCFC 2018-03 to the King County Forecast Council who adopted the rates in March 2018. The 2022 and 2023 discount rates were adopted on March 9th, 2022.

What’s a discount rate?

A discount rate is a number or numbers used in financial analysis that allows for the conversion of costs and benefits in future time periods to the present. 

Why is it important?

Using this in analysis is part of sound financial analysis. Having an agreed upon value or values means they will be consistent across county agencies.

Are exceptions allowed?

Yes, the financial policies allow for alternative rates with justification.

Where do I find more information?

Page 14 of the County financial policies include details of the use of discount rates for county analyses and procedures for exceptions. For questions regarding the discount rate, contact Aaron Rubardt in the Office of Performance, Strategy, and Budget.