News

North Lake would cost city $105,000 per year

By ERICA HALL

Staff writer

Federal Way City council members remain divided over whether to initiate an annexation process for the North Lake neighborhood, but they’ve agreed to discuss it as a whole council Dec. 2.

Councilman Dean McColgan said he’s concerned about the cost to provide city services to North Lake, which are estimated to be $105,000 a year when capital and operating deficits are combined.

The $89,000 capital improvement deficit is a raw number, city officials said, and doesn’t take into account tax revenue estimates, grants or other potential funding sources.

McColgan conceded there hasn’t been a detailed analysis of what grant funding sources might be available for capital projects, and he said while he’s still reluctant to support annexation of the area, he is willing to discuss it with his council colleagues.

“To be fair to the North Lake residents, the full council should hear all the information,” he said at the council’s Land-Use and Transportation Committee meeting Nov. 3.

The council will consider at all three proposed annexation areas the committee has considered — North Lake, Parkway and Redondo East — at the Dec. 2 meeting.

Information on operating and capital costs and likely operating revenue sources will be provided, said Rox Burhans, an associate planner in the community development department. Officials also will provide the council with suggestions for other potential sources of capital revenue, like grant funding and potential partnerships with neighboring jurisdictions.

Of the three areas under consideration, Redondo East is the only one officials expect will generate more money in tax revenue than the city will have to spend there to provide services. Parkway is anticipated to provide almost $269,000 in revenue, but would cost $494,000 to serve — a difference of $225,000, according to city reports.

All together, officials anticipate the city would have to provide a subsidy of about $267,000 — which includes the positive benefit of annexing Redondo East — to bring the three areas up to city standards.

There are about 1,100 people living in the Parkway area, situated east of Interstate 5 southwest of Enchanted Park. Parkway includes the Regency Ridge condominiums, Brittany Lane and Regency Woods

North Lake is bordered on the southwest by Federal Way, with South 320th Street to the north and Peasley Canyon to the east. About 600 people live in North Lake.

Redondo East is bordered by Federal Way and Des Moines, with South 272nd Street serving as the northern border, Pacific Highway South to the east and 16th Avenue South to the west. About 260 people live there.

Staff writer Erica Hall: 925-5565, ehall@fedwaymirror.com

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