Executive Summary

Issue Description: Annexations Values and Expectations Meeting Date: Attendees: June 27, 2010 Eric Baker and Angie Silva

Action Requested At This Meeting: Review and discuss the Countys values and expectations regarding annexation and transfer of service responsibilities prior to joint meetings with the cities. BACKGROUND The Kitsap County Board of Commissioners is interested in developing the Countys foundational principles for future annexation and urban service delivery. These values are an attempt to formalize goals for equitable and coordinated transfer of governance of unincorporated urban areas from the County to the city(s). Over the years, Kitsap County government has been providing multi-faceted public services countywide (urban, rural and regional services). Serving these multiple masters has stretched county resources to unsustainable service levels and is fiscally unsound in the long-term. It is the goal of the Board to, over time, transition the County into solely a regional and rural service provider. VALUES AND EXPECTATIONS Under the Growth Management Act (GMA), the bulk of future growth should be focused inside Urban Growth Areas (UGAs) and cities should be the lead in providing urban services. The modification of UGA sizes and compositions should be developed in a partnership between the County and neighboring city. But ultimately, it is under the Countys authority to expand or contract UGA boundaries. Noted below are draft County values and expectations to assist in formalizing agreements for the equitable and coordinated transfer of jurisdiction of unincorporated urban areas from the County to the city(s). Urban Areas Generally, UGAs will be annexed or incorporated, preferably within the 20-year planning horizon. Urban services should be provided at an appropriate and GMA-compliant level of service standard. Cities are essential players in the delivery of services to their adjacent associated UGAs.

Transfer of Services to Cities The delivery of urban services to unincorporated UGAs is a partnership between the County and adjacent municipal jurisdiction and should coordinate transfers of services as early as possible (potentially before annexations are even on the horizon).

The County is available to contract services in the near- and/or long-term to ensure cost-effective service delivery post-annexation.

Annexation Expectations Future annexation efforts should include active participation from both the city and County. An annexation plan, policies and timeline should be developed by all cities. Annexation boundaries should be logical, coordinated and contiguous. Annexation boundaries should address future cost-effective provision of services to both the properties inside and outside of the annexation area. Annexations should include a balance of commercial development and residential neighborhoods (no cherry-picking). The County and city(s) should work collaboratively to annex these lesserrevenue lands. Not all annexations will be revenue neutral in the near-term but may serve a beneficial purpose as part of a long-term strategy.

Other Transfer of Service/Annexation Issues Annexation efforts should include discussion of transferring County employees and facilities/equipment to the City to ensure a smooth transition of service delivery. Any discussion of revenue sharing should balance recent pre-annexation capital expenditures as well as post-annexation service responsibility. The County and City shall negotiate transfer of bond debt for capital improvements within an annexation area prior to final approval of the annexation. Annexations should be finalized no sooner than 30 days from Boundary Review Board approval. The County may reduce UGA boundaries if annexation and urban service delivery commitments are not being met. NEXT STEPS Commissioners Garrido and Brown will be meeting with members of the Bremerton City Council on these issues as they apply to their associated urban growth areas (East Bremerton, West Bremerton, Gorst and SKIA). Based upon productive progress with the City of Bremerton towards a cooperative model, renewed discussions with the City of Port Orchard may be valuable.