Bill would help cities to afford annexations

For years, King County has urged cities from Kirkland to Federal Way to annex unincorporated communities along their borders — where 200,000 county residents live.

But cities have been hesitant to absorb the largest of these areas, given that few of the mostly residential communities generate enough tax money to support their own upkeep.

This could be the year that things get moving, say some state lawmakers.

Supporters are pinning their hopes on a bill that would allow cities that annex communities with at least 10,000 residents to receive a larger share of state sales-tax revenue generated within those cities for up to 10 years. It would apply to cities in King, Pierce and Snohomish counties that follow through with annexations before 2012.

City leaders say the extra money would help fund police, fire, roads, parks and other services for newcomers.

"This is the best tool that is out there that gives us hope for closing the gaps that we have for our large annexation areas," said Alex Pietsch, administrator for Renton's Department of Economic Development, Neighborhoods and Strategic Planning.

The bill, which has bipartisan support from several lawmakers from the affected communities, is sitting in the Senate Ways and Means Committee awaiting today's state revenue forecast. It's not clear whether the bill will pass, but those involved say it stands a better chance than last year's effort, which would have asked new residents to agree to higher utility taxes.

The bill, co-sponsored by Sens. Margarita Prentice, D-Seattle, and Luke Esser, R-Bellevue, would give cities time to develop a new tax base or otherwise pay for services for new residents. The amount of tax money they receive would be tied to the size of the population absorbed.

Kirkland, which would add about 35,000 new residents from the Finn Hill, Kingsgate and Juanita Beach neighborhoods, would benefit by about $4 million annually under the plan. That would put it within about $1 million of closing its projected annual gap, said Kirkland legislative liaison Tracy Burrows.

"I don't think it'll completely solve it, but it would get us a lot closer," said Kirkland City Manager Dave Ramsay. "We may have to look at some budget cutting or other answers to get all the way."

King County is working with cities throughout the county to annex remaining urban unincorporated lands. County Executive Ron Sims has said it is more efficient for the county to focus on serving rural areas and to leave urban areas to cities — the vision for the future under the state's Growth Management Act.

Those who live in the unincorporated communities in question have mixed views. While some long for a nearby city hall and local police, others resent the possibility of higher business taxes or overzealous code-enforcement officers.

Some residents of the Greenwood Point/South Cove neighborhood are so thrilled to join Issaquah that they've organized a parade in March to celebrate. Residents of nearby Klahanie also voted last year to join Issaquah but nixed paying their portion of the city's debt, leaving their future in limbo. Those who live in the Fairwood community outside of Renton are split about whether to join Renton or incorporate on their own.

Lynda Haneman has lived in King County a few blocks from Kirkland's northern border since 2000. Much of her neighborhood was left out when Kirkland annexed Totem Lake along Interstate 405 about 20 years ago. The mall, auto dealerships and other revenue generators became part of the city, while several residential neighborhoods did not.

She said she would prefer a nearby city hall to visit with her concerns and local leaders with a greater stake in the community deciding where development would go.

"I realize that yes, our taxes may change a little bit and they may be higher, but that is a price I am willing to pay, and I think many people are to have more local control and local representation for what's happening in our lives and around us," Haneman said.

The proposed annexations could prompt many changes: Renton would surpass Bellevue as the county's second-largest city after Seattle, and Kirkland would be larger than neighbor Redmond.

Kingsgate becoming part of Kirkland would mean the end for Casino Caribbean, one of several cardrooms allowed on county land but banned under Kirkland's rules.

The bill, Senate Bill 6686, is budget-related and therefore not subject to a Tuesday deadline that killed nonbudget bills that had not been passed by at least one chamber of the Legislature.

Karen Gaudette: 206-515-5618 or kgaudette@seattletimes.com