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West Hill Project:
Governance Options
in the Years Ahead

August 1999

Commissioned by
King County, Washington

ECONorthwest
300 Mutual Life Building
605 First Avenue
Seattle, WA 98104
(206) 622-2403

with
Henderson, Young & Company
Pacific Rim Resources

Project Team
  • Betty Capehart, Project Manager, King County Office of Regional Policy and Planning
  • Paul Reitenbach, King County Office of Regional Policy and Planning
  • Daniel Malarky, Project Manager: ECONorthwest
  • Randall Young, Henderson, Young & Company
  • Dr. Bruce Brown, Pacific Rim Resources
  • Brett Sheckler, ECONorthwest
  • Stephanie Prausnitz, Pacific Rim Resources
  • Community Advisory Panel
    Cathy Guy, Steven D. Hillestad, Preston G. Horne-Brine, Angelina Lorbeski, Eugene V. Lux, Marilou Monster Mariotti, Victoria Lynch Odden, Pat Rosenthal, Judith K. Sroufe, Donald Stone, Robert T. Sugden, Ann R. Uhrich, Chuck Vitiritti, Anne Watanabe, George Wittrock and Raney Budd Wright

    Disclaimer
    This document has been edited to improve readability and allow availability on King County's web site. The West Hill Project: Governance Options Report is available from the Office of Regional Policy and Planning, Governance Transition Section.


    Table of Contents
    >> Executive Summary:
    >> Introduction and Report Organization:
    >> General Characteristics of the Study Area:
    >> Public Survey:
    >> Preserving the Status Quo:
    >> Analysis of Incorporation Alternatives:
    >> Analysis of Annexation:
    >> Appendix A:  Maps
    >> Appendix B:  Details of Fiscal Analysis of the Feasibility on Incorporation
    >> Appendix C:  Description of Governance Options
    >> Appendix D:  King County Countywide Planning Policies Related to
                             Annexation and Incorporation
    >> Appendix E:  King County Policies and Programs Related to
                             Annexation and Incorporation
    >> Appendix F:   Letter from West Hill UAC to King County
                             Requesting Governance Options Report
    >> Appendix G:  Survey Form


    Executive Summary:

    Background

    The Growth Management Act, King County Countywide Planning Policies, and the King County Comprehensive Plan encourage all unincorporated areas within King County's Urban Growth Boundary to pursue incorporated status either through annexation or through incorporation. State law (RCW 36.70A.110) provides the underlying rationale for these policies: "In general, cities are the local government most appropriate to provide urban governmental services."

    In response to the direction of the Growth Management Act (GMA), in the early 1990s, King County and the suburban cities worked together to develop a framework of policies intended to guide jurisdictions as they planned for the future. These policies, referred to as the Countywide Planning Policies, are King County and the suburban cities' interjurisdictional plan for implementing the goals of the Growth Management Act. As directed by the GMA, these Countywide Planning Policies explicitly address the status of unincorporated urban areas. Among other things, the policies call for:

    • Elimination of unincorporated urban islands between cities.
    • The adoption by each city of a Potential Annexation Area, in consultation with residential groups in the affected area.
    • The annexation or incorporation of all unincorporated areas within the urban growth boundary within a 20-year timeframe (1993 - 2013).

    The Countywide Planning Policies anticipate that, as this 20-year transition proceeds, the role of county government will evolve into one of providing regional services on a countywide basis and providing local services only to rural areas outside the Urban Growth Boundary.

    Given the clear direction of the Growth Management Act and the Countywide Planning Policies, King County government has tried to facilitate the governance transition of unincorporated urban areas. This report represents the County's latest effort to assist the citizen's of West Hill in determining which governance option is best suited to the needs of the community.

    In November 1997, the West Hill Community Council presented King County with a letter requesting a study assessing the governance alternatives available to West Hill. In response to the request, the King County Council allocated funding, and in December 1998, the Office of Regional Policy and Planning hired a consultant team led by ECONorthwest to prepare this governance options report. ECONorthwest's team included staff from Henderson, Young & Company and Pacific Rim Resources.

    Throughout the development of this options report, the consultants received valuable assistance from the members of the West Hill Community Advisory Panel (CAP). At all stages of the analysis, the members of the CAP served as advisors and as voices for the community, providing valuable insights into the perspective of West Hill residents, businesses, and community groups. The Panel's assistance has been of great value in determining both the direction and the structure of this analysis.

    In addition to the assistance and direction provided by the CAP, the consultants also received substantial assistance from County staff and from staff at the City of Renton and the City of Seattle. Representatives of each of these three jurisdictions invested a great deal of time and effort to ensure that this report would provide accurate and comprehensive data describing levels of services, costs, and rates of taxation within their jurisdiction.

    Study Purpose

    This report provides West Hill residents and businesses with reliable and unbiased information with which to make well-informed decisions about their future.

    Residents are likely to have four primary questions when thinking about their local governance options:

      1. Is an incorporated City of West Hill financially feasible?
      2. How might our services or taxes change if we annex to a neighboring city?
      3. Is maintaining the status quo a viable option?
      4. What do my neighbors think about these options?
    This report is intended to help answer these questions.

    To determine the feasibility of incorporation, this report includes a rigorous assessment of West Hill's financial position, evaluating the revenues available to a City of West Hill and the likely expenses such a city would incur. The assessment of annexation compares virtually all of the governmental services that would change upon annexation, comparing service levels and expenses for each service provided by King County with those of neighboring cities. Finally, to inform residents about what others in the area are thinking, the report includes results of a public survey of West Hill residents to identify current attitudes about both governmental preferences and the delivery of public services.

    Study Area

    The area included in this Governance Alternatives study is the West Hill area, an area generally south of Lake Washington, west of Renton, and southeast of Seattle. The West Hill area is shown on the map on page 4 of the main body of the report.

    What Are the Alternatives?

    Under the Growth Management Act, residents of urban unincorporated King County generally have three governance options:
      1. Preserve the status quo - remaining part of unincorporated King County as long as possible.
      2. Incorporate as a new city.
      3. Annex to an adjoining city.

    Preserving the Status Quo

    When asked what form of governance West Hill residents preferred, a full 66 percent of respondents to the opinion survey said that they preferred the status quo. As it was worded in the survey, the respondents indicated that "the best choice for the future" was to "stay as it is - part of unincorporated King County." Of the remainder, 30 percent favored annexation, and only 4 percent favored incorporation. While these responses are illuminating and help to clarify current attitudes, they also raise some important questions. First among these questions may be: "Is the status quo a viable, long-term option?"

    Is preserving the status quo really an option?

    The answer to this question depends upon what one means when one says, "I want to preserve the status quo." If one means, simply, "I want to remain part of unincorporated King County." - then that is entirely possible. While State and county policies encourage unincorporated urban areas to pursue incorporated status, under current law it is not possible to force a community to either incorporate or annex to a neighboring city.

    If, on the other hand, one thinks of preserving the status quo as, "I want West Hill to remain unincorporated, and I want to continue receiving the same levels of public services." - then the status quo is probably not an option.

    Given the Growth Management Act statutes and the Countywide Planning Policies, at some point in the near future, King County will probably not be able to provide services to areas like West Hill at their current levels. As directed by state law, King County is now encouraging all unincorporated areas within the Urban Growth Boundary to pursue incorporated status. As more and more of these areas do so, the pool of revenues available to the County for providing local services will inevitably shrink. Given reduced resources and the evolution of the County's role toward providing only regional services, local services levels in West Hill will probably decline if it remains unincorporated.

    This report does not include an extensive analysis of the effects of maintaining the status quo in West Hill. Instead, it focuses on the two options for the area to achieve incorporated status: incorporation as a new city and annexation to an existing city.

    Is Incorporation Feasible?

    The survey of West Hill residents showed that 66 percent of the respondents prefer that the area remain unincorporated as it is today, 30 percent favored annexation, and only 4 percent favored incorporation as a new city. When asked which alternative they would prefer if staying as it is were not an option, an overwhelming 84 percent of respondents favored annexation, while only 16 percent favored incorporation. Moreover, fiscal analysis indicates that the incorporation of West Hill is not financially feasible. Assuming existing tax rates, the revenues of an incorporated City of West Hill would not cover the costs for the services currently provided by King County. Given the lack of public support for incorporation and poor financial prospects of a new city, annexation is the most feasible path to incorporated status for West Hill.

    The incorporation analysis included in this report is based on a "same cost - same level of service" assumption. However, West Hill residents may decide they can make do with lower levels of services, or they could decide they are willing to tax themselves more heavily, thereby narrowing the gap between revenues and expenses.

    What Would Annexation Mean for Residents of West Hill?

    More than half of the survey respondents(52%) chose Renton as the city to which they would prefer to annex. Less than one-third (29%) chose Seattle, and 13% chose Tukwila. Only 6% had no preference. When asked why they selected a particular city for annexation, the reason most often stated by respondents was that they more closely identified with the chosen city.

    Respondents to the survey indicated that they valued a range of both tangible and intangible services linked to their local governance. Of the intangible issues, many indicated that questions surrounding community image were important and had not yet been addressed to their satisfaction. Among the tangible services, respondents reported the most important were police, fire protection, and maintenance of roads and sidewalks. In addition, as one might expect, respondents indicated that they care a great deal about the level of local taxes.

    In the case of annexation, it is possible to compare some of the tangible services and costs in neighboring cities. In regard to police services, for example, one can ask, "When someone calls 911, how long does he or she have to wait before a police officer arrives?" Similarly, one might ask, "Given the quality of services a neighboring city's police department provides, how much does that service cost the city's residents?" How attractive a particular city looks for annexation depends on what services a resident most values. If low property taxes are important, then Seattle looks better than either Renton or King County. If police response time is important, then Renton looks the best.

    Based on comparisons of a wide range of services, some of the more important findings include:

  • Taxes:
  • Property tax rates in Seattle are lower (by about 2.3%) than in either Renton or unincorporated West Hill, but business taxes are higher.

  • Police:
  • While Seattle did not provide response times that were comparable to those reported by Renton and King County, between Renton and King County, Renton provides the faster response times by a substantial margin. In addition, given the number of calls they receive, Renton's police department appears to be very cost-efficient.

  • Library:
  • Renton, Seattle, and King County all provide similar numbers of books per resident, but King County lags behind both Seattle and Renton in the amount of actual library space provided per resident. Seattle's library operating costs are a considerably higher per resident than either Renton's or King County's, and Seattle is now embarking on a "once in a lifetime" investment in its libraries.

  • Roads:
  • Renton spends substantially more per resident on maintaining its roads than either Seattle or King County. In recent years, too, Renton has invested more per resident, and Renton plans to continue that trend over the coming years.

  • Fire/EMS:
  • Fire District # 20 (the existing fire district in West Hill) spends much less to provide its fire protection and emergency medical services than does Renton or Seattle, but its response times are slower and its insurance rating is worse. Between Renton and Seattle, indicators are mixed. Renton has faster response times, but Seattle has a slightly better insurance rating, and it provides that service at slightly lower cost per resident.

    Return to:  Table of Contents | Office of Budget Home

    Introduction and Report Organization:
    This report begins with a brief discussion of some of the general characteristics of the West Hill area, including basic statistical data used in our calculations. The next section reviews the findings from a survey designed to identify key issues on the minds of West Hill residents. The remaining sections of the report discuss West Hill's three governance options. In section four, we briefly discuss the viability of maintaining the status quo and remaining part of unincorporated King County. In section five, we discuss our analysis of the feasibility of incorporation as a new city. And in section six, we provide a detailed analysis of considerations surrounding annexation to neighboring cities.

    >> Sections within:

      Introduction and Report Organization:
      I. Background
      II. What are the governance alternatives?
      III. Goals and objectives of the report
      IV. Report Organization
      V. Locator Map

    >> View Introduction and Report Organization:

    >> View Locator Map

    Return to:  Table of Contents | Office of Budget Home

    General Characteristics of the Study Area:
    West Hill is an urban unincorporated area bordering the southern end of Lake Washington and surrounded by the cities of Seattle, Tukwila, and Renton. The area is roughly 2.25 miles wide, when measured from east to west, and slightly more than 2 miles long and includes the neighborhoods of Bryn Mawr, Lakeridge, Skyway, Earlington, Campbell Hill, Panorama View, and a commercial/industrial area south of Martin Luther King, Jr. Way.

    >> Sections within:

      General Characteristics of the Study Area
      I. Population
      II. Taxable Assessed Value

    >> View Chapter: General Characteristics of the Study Area

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    Public Survey:
    To identify the key issues on the minds of West Hill residents and businesses regarding governance preferences, we conducted a statistically valid survey of West Hill households. The survey assessed the community's preference of the governance alternatives as well as its satisfaction with present delivery of services, affinity towards surrounding cities, and residents' demographics.

    >> Sections within:

      Public Survey
      I. Survey Preparation and Data Collection
      II. Sample
      III. Data Processing and Analysis
      IV. Sample Characterstics
      V. Results and Discussion
      VI. Future Governance Options
      VII. Conclusions

    >> View Chapter: Public Survey

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    Preserving the Status Quo:
    When asked what form of governance West Hill residents preferred, a full 66 percent of respondents to the opinion survey said that they preferred the status quo. As it was worded in the survey, the respondents indicated that "the best choice for the future" was to "stay as it is - part of unincorporated King County." Of the remainder, 30 percent favored annexation, and only 4 percent favored incorporation. While these responses are illuminating and help to clarify current attitudes, they also raise some important questions. First among these questions may be: "Is the status quo a viable, long-term option?"

    >> Sections within:

      Preserving the Status Quo:
      I. Is preserving the status quo really an option?

    >> View Chapter: Preserving the Status Quo

    Return to:  Table of Contents | Office of Budget Home

    Analysis of Incorporation Alternatives:
    The vast majority of residents who responded to our public survey indicated that incorporation was the least attractive of the available alternatives. If continuation of the status quo remains an option, then most residents prefer this alternative. If remaining with the status quo is not an option, then most respondents indicated a preference for annexing to another city.

    In fact, based on our analysis of West Hill's fiscal position, we find that incorporation is not financially feasible. In order to provide readers with the most complete information possible, on the following pages we provide a thorough discussion of this assessment. Some readers may want to skip to the punch line and scan the following section only briefly, then jump ahead to our analysis of annexation alternatives beginning on page 17. Others, however, wishing to ensure that they have a complete understanding of the underlying reasons for our finding, might want to take the time to read this entire section carefully.

    >> Sections within:

      Analysis of Incorporation Alternatives
      I. Does Incorporation of West Hill Appear Financially Feasible?
      II. What are the Key Factors Affecting Feasibility?
      III.Key Assumptions
      IV. Overview of Projected Revenues and Expenses

    >> View Chapter: Analysis of Incorporation Alternatives

    Return to:  Table of Contents | Office of Budget Home

    Analysis of Annexation:
    Most respondents to our public survey indicated that they would prefer to stay with the status quo and remain a part of unincorporated King County. In the absence of this alternative, however, the vast majority preferred annexation to an adjoining city rather than incorporating as a new city.

    >> Sections within:

      Analysis of Annexation
      I. General Outline of the Annexation Process
      II. What This Analysis Is About
      III. Methodology
      IV. Key Assumptions
      V. Levels of Service and Expenditures Per Capita
      VI. Limitations on Use of the Annexation Analysis

    >> View Chapter: Analysis of Annexation

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    Appendix A:  Maps

    >> List of Combined Maps within Appendix A:

      I. West Hill Comprehensive Plan Land Use Map
      II. Fire District and Fire Stations Map
      III. Water and Sewer Agencies Map
      IV. School District and School Sites Map

    >> View Combined West Hill Maps

    Return to:  Table of Contents | Office of Budget Home

    Appendix B:  Detail of Fiscal Analysis of the Feasibility on                         Incorporation

    >> Sections within Appendix B:

      Details of Fiscal Analysis of the Feasibility on Incorporation
      I. Parameters
      II. Projected Revenues
      III. Projected Expenses
      IV. Revenues Less Expenses
      V. Revenues not available to General Fund
      VI. Projected Average Annual Capital Expenditures
      VII. Core Operating Costs and Annual Capital Expenses
      VIII. Revenues Less Operating & Annual Capital Expenses
      IX. Notes on Incorporation Feasibility Assessment
      X. Details of Regression Analysis Used for Forecasting Retail Sales Tax Revenues     Per Captia.

    >> View Appendix B:

    Return to:  Table of Contents | Office of Budget Home

    Appendix C:  Description of Governance Options

    >> Sections within Appendix C:

      Description of Governance Options
      I. Incorporation
      II. Annexation
      III. Role of King County Boundary Review Board in Annexations and Incorporations

    >> View Appendix C:

    Return to:  Table of Contents | Office of Budget Home

    Appendix D:  King County Countywide Planning Policies
                            Related to Annexation and Incorporation
    The Growth Management Act requires each County to designate Urban Growth Areas, in consultation with cities. Within the Countywide Urban Growth Area, each city will identify land needed for its growth for the next 20 years. Although the Growth Management Act does not explicitly equate Urban Growth Areas with municipal annexation areas, the Urban Growth Areas around cities may be considered potential expansion areas for cities.

    >> View Appendix D:

    Return to:  Table of Contents | Office of Budget Home

    Appendix E:  King County Policies and Programs Related to
                           Annexation and Incorporation
    King County has a number of adopted policies and programs which consider annexations and incorporations in light of the State's Growth Management Act requirements. The following information is intended to clarify King County's role as a local government in annexation or incorporation of unincorporated areas within of the Urban Growth Boundary and provide information to assist the public in making thoroughly informed decisions about governance.

    >> Sections within Appendix E:

      King County Policies and Programs Related to Annexation and Incorporation
      I. The Annexation and Incorporation Process
      II. Adopted Annexation and Incorporation Policies
      III. Potential Annexation Area Program
      IV. 1997 Potential Annexation Area and Annexation and Incorporation Work Program

    >> View Appendix E:

    Return to:  Table of Contents | Office of Budget Home

    Appendix F:   Letter from West Hill UAC to King County
                            Requesting Governance Options Report

    >> View Appendix F:

    Return to:  Table of Contents | Office of Budget Home

    Appendix G:  Survey Form
    >> View the Survey Form:

    Return to:  Table of Contents | Office of Budget Home


    If you have questions about the West Hill Project: Governance Options Report, please call the Governance Transition Section of the Office of Regional Policy and Planning. (206) 205-0700 or send e-mail to Michael Thomas.

    Portions of the West Hill Governance Options Report document are provided in Adobe Acrobat portable document format (.pdf). In order to view these documents you must have Acrobat Reader software installed on your computer. If you do not have Adobe Acrobat installed on you computer you can obtain the installation file and instructions from the Adobe web site.

    Updated: Jan. 7, 2003

    June 1999 Governance Transition Report
    Office of Budget home


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