Two big wind storms swept through the region last week. A low pressure system brought wind gusts to Kirkland on Thursday. But the bigger storm happened earlier in the week as the winds of change put a cell of high pressure on city government.

As of Monday, the Finn Hill, North Juanita and Kingsgate neighborhoods are on the cusp of being annexed into the City of Kirkland, nearly doubling the size of the city.

But the main increase in revenues for the city went down to defeat, as Kirkland residents rejected an increase in private utility taxes.

Annexation seems close to passage as votes for the measure continue to dance around the 60 percent threshold. The measure needs 60 percent, as opposed to the normal 50 percent, since the PAA will assume part of the city’s $19 million debt.

“We are happy with the current returns but we are not ready to declare victory,” said Johana Palmer of Annexation Yes on Friday morning. “If it falls below 60 percent we will take it to the city council as they did with Rose Hill.”

The other question on the annexation vote has already been answered. There were more than 6,770 voters that cast ballots during the election, surpassing the 40 percent threshold of the PAA’s turnout in last year’s general election needed to certify the election.

As of Monday at 4:30 p.m. 10,239 registered voters cast ballots in the annexation area, with 5,993 people, or 60.26 percent voting in favor of becoming part of Kirkland. That also means that there are just 27 Yes votes keeping it above 60 percent.

If the annexation vote ultimately meets the 60 percent threshold for passage, the City of Kirkland will grow from 48,410 residents to 81,426, according to the 2008 numbers from the state Office of Financial Management.

An annexation measure in Kent that would push that city’s population well over 110,000 is set to pass with 58 percent of the vote. The Kent annexation of the Pantherlake area only needs a simple majority to pass. If both annexations pass, Kirkland would jump to the 12th largest city in the state, surpassing city’s like Bellingham and Renton and slightly smaller than Yakima.

But the combination of the annexation measure’s passage and the failure of the utility tax could put the City of Kirkland further behind in its budget.

Proposition 1, an expansion of the private utility tax from 6 percent to 7.5 percent, only garnered 39 percent of the 12,430 votes in Kirkland as of Monday at 4:30 p.m. Without much retail in the annexation area, utility taxes are the biggest source of revenue from the area.

The measure’s failure means the city will have $2.2 million less in revenue for 2010, said Tracey Dunlap, director of finance and administration for the city.

The city has already eliminated the equivalent of 34 positions and since the utility tax measure failed, the city will need to cut more services and staffing. This includes a reduction in Neighborhood Matching Grants from $3,500 to $1,000 per neighborhood per year; the elimination of the Park Ranger Program; reduction in the Summer Concert Series; elimination of Senior Center special events and Volunteer Firefighter compensation.

However, Dunlap noted that the loss of private utility tax revenue will not affect the levels of service in the Proposed Annexation Area (PAA).

“Annexation and the utility tax were not linked,” said Dunlap. “(The city) had run scenarios without the utility tax when the council made its decision to move forward. General economic conditions will make annexation more challenging, but they (annexation and the utility tax) were not linked.”

The council will hold a special study session at 6 p.m. tomorrow to receive an update on the city’s financial condition and to review the City Manger’s recommendation for budget adjustments.

The new area will also have some challenges from the start. One of the biggest issues is what fire district will service the Kingsgate neighborhood. The issue has still not been resolved, as Woodinville Fire and Life Safety currently serves some of the area. But the alternative fire district, the King County Fire Protection District No. 41 will have a new leader to deal with the situation. Former state Rep. Toby Nixon defeated Nancy Lindquist for the Commissioner Position No. 3.

“I’m grateful to the voters of the district for their support,” said Nixon. “I look forward to getting quickly up to speed on all the district business and on working with the other commissioners to build support for my priorities including improving community outreach and transparency into the district’s operation, as well as starting the planning for integration of the district into the City of Kirkland if the annexation vote is successful.”

Nixon garnered 65 percent (4,216) of the vote to Lindquist’s 35 percent (2,233).