Drafter
Clerk 10/16/2006
Title
A MOTION extending King County's annexation initiative until 2010 to support annexation or incorporation of remaining unincorporated areas of King County.
Body
WHEREAS, on September 27, 2004 the Metropolitan King County Council adopted Motion 12018 setting forth the vision and goals for an initiative to help sustain vital government services to the citizens of King County by promoting the annexation or incorporation of remaining urban unincorporated areas of King County, and
WHEREAS, the mission and vision statement for the annexation initiative as adopted under Motion 12018 is to ensure annexation or incorporation of all remaining unincorporated areas of the county within the 2012 timeline established in the countywide planning policies; and moreover, to secure the annexation or incorporation of significant urban areas on an accelerated basis wherever possible, and
WHEREAS, Motion 12018 also established three goals for the annexation initiative, including:
A. Preserve the quality of local services to urban communities by transferring governance responsibility for these areas to cities, which have more revenue options available for funding urban local services than does the county.
B. Preserve the quality of county regional and rural local services by providing financial relief to these budgets that are dependent on general county tax revenues.
C. Ensure the smooth transition of services from the county to the cities for citizens as well as county employees and departments.
WHEREAS, the primary means for accomplishing the vision and goals for the annexation initiative are through the dedication of county staff and financial resources working to accelerate the pace of annexation and incorporation and planning for the transition services affected by annexation or incorporation, and
WHEREAS, through the dedication of staff and financial resources over the last three years the annexation initiative completed the a significant portion of the tasks, some of which require ongoing updates, as directed in Motion 12018, Section C, I, II:
A. Categorized services as regional, rural local, or urban local and determine the types and levels of services provided in each of the ten largest unincorporated urban areas.
B. Determined the costs associated with the provision of urban local services in each of the ten areas by either or both county fund and appropriation unit.
C. Determined the revenue impacts associated with annexation or incorporation of each of the ten areas by county fund and ensured that these are reflected appropriately in fund financial plans.
D. Established priorities and anticipated timelines for annexation or incorporation of each of the ten areas, with highest priority given to those areas whose annexation or incorporation would result in the largest fiscal benefit to the county.
E. Facilitated, conducted, or reviewed studies of specific annexation or incorporation proposals including: West Hill Governance Options Assessment, Fairwood Incorporation Feasibility Study, North Highline Incorporation Feasibility Study, Kirkland Level of Service Analysis, East Renton citizen advisory group and meetings, and Cost of Renton Annexation of the East Renton, Benson Hill and the greater Fairwood PAA.
F. Ensured that county business plans and master planning processes anticipate annexation and incorporations;
G. Conducted community outreach and communications in order to promote an environment supportive of annexation and incorporations, including:
1. Developed and consistently update annexation initiative website.
2. Developed materials for all ten potential annexation areas explaining the tax and service implications of becoming part of a city.
3. Partnered with cities and community organizations to conduct annexation open houses in Fairwood, East Renton, West Hill, Benson Hill Communities, North Highline and Federal Way, and
WHEREAS, in addition to the human resources, Motion 12018 established and put the following parameters around the use of financial resources to promote annexation or incorporation, as described below,
A. The general fund financial plan includes a reserve of $10 million for the annexation initiative. The annexation initiative was created in the 2004 adopted budget from one-time savings of current expense funds. These funds have yet to be appropriated and remain in the annexation initiative reserve. In 2006, the council is to evaluate whether the funds should be reprioritized for other use in 2007.
B. The Real Estate Excise Tax 2 (REET) financial plan includes a reserve of $2 million for the annexation initiative.
C. The county's Roads Capital Improvement Program amended in 2004 includes $4 million in road-related, annexation incentive capital projects, and
WHEREAS, through the dedication of these staff and financial resources the executive has completed a considerable portion of the tasks laid out in Motion 12018, will propose commitment of a total of $13.35 million of the available $16 million of annexation incentive funds, and made progress towards moving the ten potential annexation areas to city status as demonstrated by the following actions or events:
A. The executive successfully negotiated an interlocal agreement under the annexation initiative and Council Motion for the annexation of Klahanie and South Cove/Green Point to the city of Issaquah. The voters in both areas overwhelmingly approved the annexation. The city proceeded with annexation of the South Cove/Greenwood Point area alone, 3,700 residents, on March 2, 2006.
B. The city of Renton designated West Hill as a potential annexation area in its 2005 comprehensive plan update following the completion of the county sponsored West Hill Governance Options Assessment.
C. Following the completion of the Fairwood Incorporation Feasibility Study in December 2005, a resident group submitted a proposal to the King County Boundary Review Board (BRB) to create a new city of Fairwood that would encompass the eastern portion of the Fairwood PAA. On September 19, 2006, citizens within the boundaries of the incorporation area had the opportunity to vote to incorporate. By a relatively narrow margin, the proposed incorporation measure was defeated. There remains energy in the community to either annex or incorporate.
D. In March 2006, the executive signed a memorandum of understanding with the executive branches of the City of Seattle and the city of Burien to work with the residents of North Highline to find a governance solution for the entire community, either through full-annexation by one city or a joint annexation by both cities. The parties agreed on a process and timeline for annexation that includes three major milestones: potential annexation designation in 2006, vote or other form of resident decision in 2007, and annexation by March 2009. It is anticipated this agreement will lead to the annexation of North Highline, the most costly of the 10 PAAs by, if not before, the 2010 deadline established by the county council.
E. The county successfully worked with county and city associations, state and local elected leaders, and others to change state statute to provide new funding sources to ease the cost of annexation. The state's adoption of legislation in 2006 (Substitute Senate Bill 6686) dramatically improves the economics of annexation for many King County cities.
F. The cities of Federal Way, Auburn and Kent have demonstrated a renewed interest in working with the executive to move forward with the annexation of their respective PAAs, based on availability of the state sales tax credit.
G. The executive has negotiated interlocal agreements with the cities of Renton, Federal Way, and Auburn that, subject to the council's approval, will govern the transition of five of the ten PAAs, representing over 100,000 people, to city status by 2010. These agreements propose committing $7.35 million from the general fund reserve, $2 million from REET reserve, and $4 million of road capital improvements for the annexations of West Hill by 2009, East Renton by March 2007, Fairwood by 2010, Lea Hill and Auburn West Hill by 2008, Benson Hill by 2008, and East Federal Way by 2009, and
WHEREAS, completing these negotiations and promoting an environment supportive of annexation and incorporation requires a continued commitment from the county to the annexation initiative and completion of tasks in Motion 12018, and
WHEREAS, the cities note the continued need for county annexation incentive funds to help redress one time transition costs associated with annexation of these major areas along with the state sales and use tax credit, and
WHEREAS, in addition, the cities reiterate the need for King County to continue to act as a catalyst and leader for pre-annexation activities in the urban unincorporated areas, and
WHEREAS, internal county transition planning in response to the loss of urban unincorporated areas, including completion of tasks outlined in Motion 12018, remains critical to achieving the cost savings associated with reduction in service area,
NOW, THEREFORE, BE IT MOVED by the Council of King County:
The following activities and actions supporting annexation and incorporation and resulting regional governance transition are hereby endorsed.
A. King County strongly supports the continuation of the annexation initiative authorized in Motion 12018 until 2010 to ensure savings from pending annexations are realized and the countywide land use vision is achieved.
B. King County shall continue to hold in reserve the funding committed to support the annexation initiative in Motion 12018, including $10 million general fund, $2 million REET, and $4 million of road funds for road-related improvements until 2010, and appropriate these funds in accordance with council approved interlocal agreements pertaining to annexation and incorporation based on the guidelines approved by the council through the adoption of Motion 12018. In 2010 the council will evaluate whether any remaining funds should be reprioritized for other uses in 2011.
C. King County shall continue communication efforts with urban unincorporated areas to improve residents understanding of the benefits of city status as opposed to remaining unincorporated.
D. King County shall engage in cooperative city-county efforts on interim economic development; major capital projects in the PAAs; and joint planning activities to assist in the transition from county to city status.
E. King County shall develop ILAs for remaining PAAs with the cities of Kirkland, Kent, and Burien and/or Seattle;
F. King County shall implement the proposed 2006 ILAs upon council authorization including joint community outreach efforts and transfer of county facilities;
G. King County shall continue to support citizens and cities in Boundary Review Board proceedings.
H. County departments and separately elected officials shall work with the office of management and budget to accomplish the following transition planning tasks with respect to the ten largest remaining urban unincorporated areas, consistent with Motion 12018, as follows:
1. Establish target reductions by appropriation unit prior to finalizing negotiations on specific agreements to annex or incorporate significant urban unincorporated areas;
2. Assess the impact of annexations or incorporations on county employees and work with employees and unions to develop transition plans for employee groups;
3. Determine which local services in what areas would provide a mutual benefit to the cities and the county if after annexation or incorporation the city were to contract for those services with the county;
4. Assess the impact of annexations and incorporations on the county's contracts and indirect services;
5. Ensure that county business plans and master planning processes continue to anticipate annexations and incorporations.
I. The executive shall, by January 15 of each year, file with the clerk of the council for distribution to each councilmember, 9 copies of the annual work program of the annexation initiative for the council's review.
J. The office of management and budget shall submit to the councilmembers on a quarterly basis a summary of annexation initiative activities. The summary will be
provided to the councilmembers no later than end of the first month of the following quarter.