UPDATE: The City of Bothell has informed us that the information quoted in this article has since been removed from the City website as it was preliminary. Please visit this article for details.

The City of Bothell has completed a fiscal analysis of the prospect of annexing Kingsgate, Upper Juanita and Finn Hill. King County urged Bothell to study the possibility of annexing these unincorporated areas, jointly known as the Kirkland’s Potential Annexation Areas (PAAs) when Kirkland found annexation unfeasible in May of last year. Bothell, with a far stronger financial basis, has shown interest in annexing Kirkland’s PAAs. Bothell is now referring to the PAAs, along with an adjacent area, as the South of Bothell Annexation (SOBA) Area.

In summary, the study concluded that revenues from all unrestricted funds would amount to $14.4 million annually, and expenditures to provide City services at current levels would total $13.1 million annually, for an annual net surplus of $1.4 million after one-time costs (estimated at $8 million) are amortized.  The study calculated that revenues restricted to capital expenditures would total $1.8 million annually, and pointed out that the $1.4 million annual surplus in unrestricted revenues (after amortization of one-time costs) could be applied to capital.

Bothell and Kirkland have very different financial situations. The two cities have different cost structures, service levels and budget controls. As everyone in Kirkland is painfully aware, Kirkland spent much of 2008 in a self-described “financial crisis” with projected deficits in the range of $19 million.

Bothell is simultaneously studying the annexation SOBA as well as areas to the north of the city reaching into Snohomish County. Despite the rosy financial picture Bothell’s study has painted, annexation of SOBA cannot take place until the Kirkland City Council decides to release the PAAs from Kirkland’s control. Until Kirkland either releases control over the PAAs or conducts another round financial studies, the residents of Kingsgate, Upper Juanita and Finn Hill will remain in limbo.

From the Imagine Bothell January 2009 Schedule:

Tuesday, January 13, 2008, City Council meeting, starting time 6:00 p.m.

 A.  Study Session to Consider South of Bothell Annexation (SOBA) Area Annexation Fiscal Analysis  

 The purpose of this Study Session is to review the findings of the South of Bothell Annexation (SOBA) Area Annexation Fiscal Analysis (available online at ci.bothell.wa.us).  The Study Session also provides an opportunity to discuss the potential SOBA in relation to the proposed North, East and West of Bothell Annexation (NEWBA), which is now before the Snohomish County Boundary Review Board (SCBRB).  No Council decisions are necessary at this time. 

 The SOBA analysis projected revenues and expenditures which might be expected to result from annexation by Bothell of the unincorporated areas of Finn Hill, Upper Juanita and Kingsgate, should the City of Kirkland relinquish those neighborhoods from its official Potential Annexation Area (PAA) or King County amend the Countywide Planning Policies to allow overlapping PAAs. 

 In summary, the study concluded that revenues from all unrestricted funds would amount to $14.4 million annually, and expenditures to provide City services at current levels would total $13.1 million annually, for an annual net surplus of $1.4 million after one-time costs (estimated at $8 million) are amortized.  The study calculated that revenues restricted to capital expenditures would total $1.8 million annually, and pointed out that the $1.4 million annual surplus in unrestricted revenues (after amortization of one-time costs) could be applied to capital.

 Please note that annexation of Finn Hill, Upper Juanita and Kingsgate would have to include South Norway Hill as well, to achieve contiguity with Bothell’s existing boundaries.  South Norway Hill is already in Bothell’s adopted PAA. 

 A 2006 annexation fiscal analysis of all of the unincorporated territory within Bothell’s Planning Area concluded that South Norway Hill would generate $851,500 in unrestricted revenues and $775,000 in maintenance and operation expenditures, for a net annual surplus of $76,500. 

 Adding South Norway Hill to Finn Hill, Upper Juanita and Kingsgate would thus add to the positive net revenue picture which emerged from the SOBA study. 

 Staff contact: Bill Wiselogle, Community Development Director, via e-mail at bill.wiselogle@ci.bothell.wa.us, or via telephone at 425-486-8152 ext.4466.

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