Title
SE Annexation Feasibility Analysis
Recommended Action
Committee Recommendation:
Briefing, discussion only.
City Manager Recommendation:
Briefing, discussion only.
Report
Issue:
Briefing and discussion on the SE Annexation Feasibility Analysis
Staff Contact:
Tim Smith, Deputy Director, Community Planning and Development Department, 360.570.3915
Presenter(s):
Tim Smith, Deputy Director, Community Planning and Development Department
Morgan Shook, ECONorthwest
Lee Ann Ryan, ECONorthwest
Background and Analysis:
The City of Olympia explored the feasibility of annexing the southeast portion of its Urban Growth Area (UGA) in 2019. A draft feasibility report was delivered through a contract with Local Planning Solutions. This report profiled the proposed annexation area and provided a high-level analysis of potential annexation phases and impacts. At its September 16, 2021 meeting, the Council’s Land Use and Environment Committee (LUEC) reviewed several scenarios of the potential impacts of annexation on City operating expenses and revenues. The Committee directed staff to proceed with a more detailed annexation fiscal analysis. This information would then be presented to the City Council at a future study session in preparation for a decision of whether and how to proceed with an annexation process.
The City subsequently published a Request for Qualification and selected ECONorthwest to prepare the analysis. ECONorthwest is a consulting firm with expertise in municipal annexation fiscal analysis and Washington state annexation laws. ECONorthwest was tasked with analyzing and measuring fiscal impacts of an annexation of the SE UGA under two scenarios: 1) City assumes responsibility for all services to the annexation area, including fire service provision, and (2) a Regional Fire Authority (RFA) assumes the City’s fire service (formed with the City of Tumwater), which results in lower property tax revenues and lower service delivery costs in the annexation area.
The annexation Feasibility Analysis was completed in January 2023 and is attached. ECONorthwest will provide a presentation of the analysis findings. The purpose of the presentation is to update the LUEC on the analysis. In the spring, the analysis will be brought back before the LUEC for a recommendation to the City Council on whether to proceed with initiating a formal SE Annexation process. This decision will be coordinated with the outcome of the community vote on the RFA.
Climate Analysis:
An annexation of the SE Urban Growth Area would result in a higher level of urban services to the annexed area that will encourage infill and urban densities (key climate mitigation strategies). This would be accomplished in part through City permitting processes and application of City development standards such as the those established in the City’s Urban Forestry Program, zoning code and building codes that differ from County regulations. An in-depth Climate Framework Analysis will be prepared concurrent with a formal annexation process.
Equity Analysis:
An annexation of the SE Urban Growth Area would result in a higher level of urban services and infrastructure, and access to and involvement with City decision making processes for the community members located in the annexation area. An in-depth equity framework analysis will be prepared concurrent with a formal annexation process. Staff will apply an equity lens to identify groups impacted by an annexation, identify existing demographic data, summarize any equity impacts of a proposed annexation and steps to mitigate equity impacts.
Neighborhood/Community Interests (if known):
Annexation proceedings generate substantial agency and community member interest. For any annexation proceeding, the City would follow a process that ensures all interested parties are well-informed and have an opportunity to participate.
Options:
Update/Discussion only.
Financial Impact:
CP&D received a 2022 budget enhancement for the consultant work on the SE Annexation Feasibility Analysis.
Attachments:
SE Annexation Feasibility Analysis