Issaquah Annexation

Information Provided To Residents in 2002

Questions and Answers

1. The Process
2. Impact On Services
3. Impact On Taxes and Fees
4. Impact on Laws and Regulations
5. Sources of Information

Information Updated July 2002

The Process

Q) When might the issue of annexation appear on our ballot for approval?

A) If residents demonstrate sufficient support to the City of Issaquah in the form of signed petitions, the annexation issue might be put on the ballot for our consideration sometime in 2004.  This date would clearly depend on when we submit the petitions, and the schedule of the Issaquah Planning Policy Commission and City Council.

Q) What level of voter approval is necessary for our area to annex to a City?

A) [heinonen] The proposition for or against an annexation may be approved by a simple majority (i.e. over 50% of those voting).

A proposition for or against the assumption of all or any portion of the City’s bonded indebtedness must be approved by a 60% majority of those voting on the annexation proposition. In addition, the number of persons voting must not be less than 40% of the total number of votes cast in the area at the last preceding general election.

Q) Did the committee explore the possibility of petitioning for annexation to Bellevue instead?

A) Yes. We had a detailed discussion about the issue at the April 4th meeting between homeowners association representatives. Some at that meeting did say they feel part of the Bellevue community, but after learning about the history of the issue, all present voted to pursue Issaquah annexation.

According to Nick Matz, of the Bellevue Planning and Community Development Dept (paraphrased):

South Cove is clearly within Issaquah's sphere of influence, and there has been an agreement that Issaquah would eventually annex your area since 1979. Issaquah and Bellevue have been planning their services ever since according to that plan. Bellevue cannot discuss annexation issues with you, since the negotiations over potential annexation area are long complete. If you really want to be part of Bellevue, the next step would be to petition Issaquah to release you from their annexation area. Once that were done, you would be free to talk to Bellevue.

It should be noted that the Timberlake neighborhood, which is at the boundary between the Issaquah and Bellevue annexation areas, was originally in the Bellevue annexation area. But several years ago, Timberlake residents successfully petitioned to be moved into Issaquah's area. It is unlikely that there is now support in that neighborhood or other neighborhoods to reverse that decision.

Impact on Services

Q) Would annexation change the provision of police services?

A) [city web site] Yes. If the annexation is approved, the Issaquah Police Department rather than the King County Sheriffs Office will provide police protection. A key difference between the two departments is that the City responds to every call for service and does not have dispatchers complete reports over the phone without sending an officer. Issaquah also has an extensive and successful community-oriented policing program.

According to the City's most recent study, Issaquah has about 2.5 sworn police officers per 1,000 residents. By comparison, King County has about 1.6 officers per 1,000 unincorporated residents.

Q) Would annexation change the provision of fire services?

A) [city web site] No. Eastside Fire & Rescue currently serves Issaquah, Sammamish and much of unincorporated King County in our area.

However, although the South Cove area and Issaquah are served by the same fire agency, there are some differences. As part of the consolidation, the City negotiated to maintain a higher level of service within its corporate limits including areas the City annexes. This higher level of service targets a 5-minute response time to fire or emergency medical service calls 90 percent of the time, while the unincorporated area has an 8-10 minute response time.

Q) How would my local government change?

A) [city web site] Through annexation, your local representation would shift from the King County Council, which is elected by district and meets in downtown Seattle during the day, to the Issaquah City Council, which meets in Issaquah in the evening.

Issaquah has a “Mayor/Council” form of government. All the people in the City elect the Mayor, who serves as the city’s chief administrator. All voters also elect the seven member City Council. The City does not have separate wards or districts; all council positions are “at large”. The City Council meets twice a month on Monday evenings in the old City Hall at 135 East Sunset Way.

Q) What wouldn't change because of annexation?

A) [city web site] While a number of important local services would change through annexation, several services would remain the same including

• Public Schools – annexation does not change school district boundaries.
• Assessed Values – All property in King County, whether in a city or an unincorporated area, is assessed by the elected King County Assessor.
• Library Services – There will be no change in your access to library services.
• County Representation – King County government represents all of King County, not just the unincorporated areas. After annexation you will continue to vote for a King County Council member.

Q) Upon annexation, would we remain customers of Bellevue Utilities?

A) [hinthorne] You would become a direct service customer of Issaquah's utilities. In other words, Issaquah would own and operate the utility systems serving the South Cove area. Your water would be supplied by Issaquah through a wholesale arrangement that Issaquah has with Bellevue. Issaquah currently provides water to Montreaux/Lakemont through a wholesale agreement with Bellevue.

Impact On Taxes and Fees

Q) Would annexation to Issaquah Raise My Taxes?

A) [city web site] Three years ago Issaquah prepared a report analyzing the financial implications of annexing the Hans Jensen/Providence Point and North Issaquah Areas.  The study found that the financial implication of annexation is about neutral.

Currently, the overall property tax rate in the City is $10.83 per $1,000 of assessed value.  The County rate is $12.35 per 1,000 of assessed value.  However, other taxes and fees in the City offset most of this saving.  For example, The City’s storm water management fee for a single-family parcel is higher than the County’s and the City has a utility tax that by law counties cannot levy.

Editor's note: Overall taxes would shift from property taxes to other fees and taxes. Most homeowners would see a net tax decrease.  The decrease in property taxes could eventually be reflected in the form of lower rents for rental units.

Q) What are some specific changes to the taxes we would pay?

A) [Provided by Jim Blake, City of Issaquah Finance Director]

Savings: South Cove (upon annexation) would not have to pay the Fire levy of $1.50/$1,000 of assessed valuation, nor the King County Road levy of $1.73.

The net property tax levy savings would be $1.48/$1,000 of assessed valuation. On a $300,000 home this property tax savings would equal $444. There may be additional savings if South Cove residents pay Bellevue’s utility tax on water and sewer since Issaquah does not tax these utilities.

Additional cost: South Cove would have to pay the City of Issaquah levy of $1.75.

They would pay a 6% city utility tax (electric, gas, phone, etc.) that for the average home would be around $180/year, and for higher net stormwater charges of $46/year.

Summary: The total dollar savings on a $300,000 home would net out at approximately $218/year if South Cove annexed to the City.

Q) Does this six percent tax apply to cell phones registered within the City of Issaquah?

A) [blake] Yes.

Q) What would the stormwater charge be?

A) [blake] You would pay Issaquah a stormwater utility fee, which is currently $23.54 for each lot every two months.  Early next year stormwater rates are forecasted to go down to about $18.50 for each lot every two months.  This is the current estimate and may change based upon the rate needs of the utility. [info provided June 2002]

Q) How would annexation affect the taxes paid by home businesses?

A) [blake] In two ways.  First, all businesses must obtain a city business license.  The cost is $40 for the first year, and $30 every year thereafter.

Second, businesses must pay the city Business and Occupation (B&O) tax.  This tax depends on gross income, with a minimum payment of $10 per quarter. Tax per quarter is currently Gross income X .0008.  For example, if quarterly gross income were $10,000, the tax would calculate to $8.00, but the business would have to pay the $10 minimum.

Q) Would there be any impact on my homeowners association dues?

A) No.  Since the homeowners associations would continue to maintain the same private common areas they currently maintain, annexation would not have any direct impact on association dues.

Q) What is the City's existing bonded indebtedness?

A) [hinthorne] At the end of this year (2002), the City's outstanding balance for unlimited general obligation bonds (voted-in bonds) will be $7,290,000. The tax rate in 2002 to retire these bonds was .48082 per $1,000 of assessed valuation. The Police Station/Jail and new Senior Center are two of the major projects financed with these bonds.

The City also has $24,710,000 in outstanding bond balance for councilmanic (non-voted) bonds. These bonds are retired with sales tax dollars, not property tax. These bonds were also used to finance the jail/police station as well as the Community Center, Pickering Barn improvements and to purchase parkland.

Impact On Laws and Regulations

Q) Would fireworks still be legal after annexation?

A) Firecrackers, M-80s and all airborne fireworks are already illegal and would continue to be illegal after annexation.

However, all fireworks are banned in the City of Issaquah.  Sparklers and cones, which are currently legal here, would no longer be legal.

Sources of Information

city web site: City of Issaquah web page providing answers to regarding the recent Hans Jenson area annexation election.

heinonen: Trish Heinonen, Planning Manager, Issaquah Planning Department

hinthorne: Mark Hinthorne, Planning Director, Issaquah Planning Department.

blake: Jim Blake, City of Issaquah Finance Director