City of Kirkland requests financial help for PAA funding

The City of Kirkland sent a letter to King County Executive Kurt Tripplett last week requesting financial assistance for the Potential Annexation Area (PAA) north of the city, known as the Finn Hill, North Juanita and Kingsgate neighborhoods. Some residents have raised concerns that this shows the city does not have enough resources to take on the annexation.

But city officials say that is not so.

“The original funds for the PAA are still there,” said Marilynne Beard, the city’s assistant city manager. “But they may have special funds that are available. You don’t know unless you ask.”

Most of the funds the city is requesting would go towards the start-up and transition challenges.

The letter states that: “The City is undertaking a thorough operational planning effort to ensure a smooth transition … We will need the County as a strong financial partner if citizens in the PAA vote to proceed with annexation.”

Some have seen this as an admission by the city that they don’t have enough money for the transition. Beard disputes that point.

“We were never counting on this money and we still aren’t,” said Beard. “The budget has to do with ongoing costs.”

Both the City of Kirkland and King County have experienced budget shortfalls, but Beard states that the money the city is asking for is already budgeted for in “special funds.”

“We understand that they have budget problems,” said Beard. “But this money is already there.”

In the letter, the city emphasizes funding for essential services, including a $1.33 million funding need for public safety next year.

One of the biggest financial burdens the PAA poses to the county, or Kirkland after annexation, are planned public works projects. In the letter the city has identified more than $17.8 million in unfunded capital projects in the PAA, including road and surface projects. One funding option would be for the county to transfer special purpose reserves – such as impact fees, real estate excise tax and road funds – to the city to the extent the annexation area raised those revenues.

Beard was quick to point out that the total amount for the projects was lower now as many projects have already been completed or would be completed by the time of possible annexation.

All of these projects are at the heart of some citizens concerns as they will need to be completed at some point. But the city says that if the county cannot foot the bill for some of the projects they will be prioritized “just like any other projects in Kirkland.”

“The City understands that funding for all of these projects is unrealistic,” the letter states.

A date for annexation has yet to be set by the Kirkland City Council, which is another issue that could cloud the financial structure of taking care of the annexation area. If the date is not set correctly for budget cycles the city could end up playing for services and projects in the PAA without picking up funding from the area.