City Council holds work
session on annexation

By Pat Ratliff
The Beacon

The Mukilteo City Council spent Monday night hearing a presentation by representatives of Berk & Associates, the firm hired by the City to study the issues of annexation.
City staff and decision makers have reviewed the presentation document, discussed the assumptions and implication, and worked with Berk & Associates to fine-tune assumptions to develop a picture of the fiscal impacts.
The purpose of the study was to evaluate the short and long-term implications for the City of proceeding with potential annexation.
The presentation included:

• A description of the contemplated annexation areas
• An explanation of how Phase I and II studies differ
• A description of the Land-based fiscal model
• A baseline fiscal outlook for the City of Mukilteo
• The impact of potential annexation and potential State sales tax credit
• The difference in costs and revenues between phase I and II
• A fiscal annexation analysis
• A discussion of capital costs and revenues

The contemplated annexation areas are described as the Western and Eastern MUGAs (Municipal Growth Areas).
The Western MUGA is west of 525 and south of the present city limits. Its 2005 population is 8, 898.
The Eastern MUGA is east of 525 to Airport Road and south to Hwy, 99.  The 2005 population of the area is 2,513.
The Phase I and Phase II studies differentiate by time. Phase I is a snapshot of fiscal impacts. Phase II is a long-term look at the effects of annexation and is designed to offer insights to the long-term effects of City policy choices and differing assumptions about future conditions.
The models use a baseline outlook for the current City and then allows for testing of alternative annexation configurations. It examines costs and revenues to the City until 2029.
The potential State sales tax credit for the City could be substantial, giving the City a significant amount of money for the first 10 years after annexation.
Development assumptions from the Phase II study show an estimate of 3,019 new housing units, or a population increase of 6,100 for a Mukilteo population of 40,030 by 2027.It also shows an increase of 5,530 jobs added for a City total of 17,280.
Revenues to the City would increase from a 2008 total of $13.68 million to a 2025 total of $43.72 million.
The studies also see an increase in City staffing from a 2008 total of 112.4 persons to a 2025 total of 168.7 employees.
Operating costs for the City are listed as jumping from $14.16 million in 2008 to $43.83 million in 2025.
More information on this study can be found on the City website at:
http://www.ci.mukilteo.wa.us/Page.asp?NavID=17.