The Municipal League of King County
Opposes
Incorporation of a New City of Fairwood
September 19, 2006 Primary Election Ballot
SUMMARY
The proposed new City of Fairwood is a seven square mile residential area southeast
of Renton with a population of 23,000. Under the Washington State Growth Management
Act, unincorporated areas of significant population are required to either annex to
existing cities or incorporate as new cities. A group of residents of Fairwood, the
Fairwood Task Force, began in 2004 to meet and hold community meetings to consider the
options. They successfully circulated petitions to place an incorporation proposal on
the ballot.
A financial feasibility study, required as part of the process and conducted by Berk &
Associates, concluded that city would be financially feasible, based on a “same cost-same
services” analysis. This type of analysis assumes that tax rates would remain the same
and service levels would also remain the same as the ones currently existing in this
unincorporated area of King County. The study assumed some future redevelopment and, to
allow accumulation of financial reserves, phased implementation of city hall services.
The study determined that the area:
- Is primarily residential with solid property values, a weak commercial tax base,
and weak current levels of public services;
- Would rank among the lowest of cities in King County in terms of revenues per
resident (property value per capita $85,000, sales tax per capita $38);
- Would lose the county road levy funds and would be significantly affected by
Initiative 747 which limits the growth of property taxes to 1% per year;
- To offset these revenues losses, would need regular public votes to lift
the levy lid to maintain a tax rate at $1.60 per thousand and would need to impose utility taxes.
The City of Renton has an active planning process underway to explore annexation of several
“proposed annexation areas,” including the Fairwood area and the adjacent Cascade neighborhood
immediately to the west. The proposed Fairwood incorporation boundaries do not include the
unincorporated Cascade neighborhood, leaving an “island” of unincorporated area between Renton and
the new proposed city of Fairwood.
The Boundary Review Board voted against this incorporation, arguing that annexation to Renton was a
better option. Its arguments are included below in the section “Arguments Against the Measure.”
ARGUMENTS FOR THE MEASURE
The proponents of the new City of Fairwood made the following arguments for the measure:
- Fairwood is a community with its own identity. Incorporation would strengthen that local
identity and preserve what is good and unique in the area.
- Residents of a new City of Fairwood will have control over their own decisions about taxation
and public services.
- The new local government would be financially viable. It is projected to have cash balances
of $500,000 per year and would have the additional cushion of a utility taxing authority that is
not fully tapped.
- The new city could contract to retain its King County public library which offers a high level of service.
- The new city would contract for police services with King County and proponents expect would
offer an enhanced level of service.
- The city would retain the same fire district and school districts. Fire District 40 offers a
high level of service and programs that residents value.
- The city would be comparable to Newcastle and Sammamish, both recently incorporated cities with a
largely residential base.
ARGUMENTS AGAINST THE MEASURE
Arguments against the measure were articulated by the opponents of the new City of Fairwood and by the Boundary Review Board:
- The new city would be financially marginal and would struggle to provide the services its residents would expect.
- With a very limited commercial tax base, the proposed city would have sales tax revenues per capita of $38,
the lowest in King County (compared to $310 in Renton).
- Property tax values per capita are at $85,000 in Fairwood, among the lowest in the county (compared to $115,000 in Renton).
- Fairwood would face similar challenges as other recently incorporated small cities such as Covington which is
experiencing budget shortfalls and is limited in its ability to provide services.
- The land within the proposed new city is fully built out and has little potential for new development or growth,
except a small amount of infill and commercial redevelopment.
- This incorporation would divide a greater community which shares common social and economic interests.
- The new city would be required under GMA to develop a comprehensive plan, to plan for essential public services and
facilities, and to plan for protection of critical areas. Funding limitations would hinder the adequate development
of such plans and the protection of the natural environment.
- A better option for the Fairwood area is to annex to the City of Renton. A separate annexation vote would likely
occur if the proposed incorporation does not take place.
- Renton is a strong city experiencing significant growth and a growing commercial base. Renton has an existing
functional municipal government and well developed public services and programs.
- Renton will be receiving $5 million in state funds to offset the costs of this and other potential annexations.
- The popular Fairwood library would not necessarily experience any change in level of service if Fairwood annexed to Renton.
POSITION and RATIONALE
The Trustees of the Municipal League recommend voters oppose the incorporation of a new City of Fairwood.
Municipal League Trustees found that while the proposed new city might be financially viable, it would be so only in
comparison to the limited current services it receives as an unincorporated area of King County. The new city would
struggle to provide the higher level of public services its residents would likely expect from a city. Fairwood would
be the first new city to incorporate in the post-I-747 environment, and with its weak tax base, would be dependent on
voter approval of regular tax increases to keep pace with inflation and rising service expectations.
Annexation to Renton would be a preferable option for several reasons: the larger city’s stronger tax base can
accommodate future service and infrastructure expenses more reliably; Renton would be able to give residents of
Fairwood the urban services that they would likely expect; and as residents of the City of Renton, its citizens would
have clout in regional affairs that they would not have as a small struggling city. Further, annexation would be the
superior option from a regional perspective in that it would promote consolidation and efficiencies in urban service delivery.
The Trustees understood the desire of residents in Fairwood to maintain their identity as a local community, but felt
that this could be accomplished as a strong and vibrant neighborhood within a growing regional city. The numerous homeowners’
associations within Fairwood clearly already provide a self-governance mechanism that allows its residents a decision-making
role in local affairs and the shaping of the community’s identity.
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