FINAL REPORT
Fairwood Feasibility Study Page 1Berk & Associates, Inc. for King County January 17, 2006
ANALYSIS OF THE FINANCIAL FEASIBILITY OF THE PROPOSED CITY OF FAIRWOOD
EXECUTIVE SUMMARY
Purpose and Mandate of the Analysis
In February 2005, a group of citizens in the Fairwood area completed signature-gathering for apetition to place the incorporation of the City of Fairwood on the ballot. The group collected nearly2,300 signatures and filed the Notice of Intent to Incorporate with the Washington State BoundaryReview Board of King County, beginning the process to allow for Boundary Review Board review andfor a 2006 public vote among Fairwood residents on the question of incorporation.In early 2005, the King County Office of Management and Budget contracted with Berk & AssociatesInc., a consulting firm, to analyze the financial feasibility of the proposed City of Fairwood.
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This assessment of the financial feasibility of Fairwood incorporation is provided as a referencedocument for members of the public, both inside and outside of the proposed incorporation area,and for members of the King County Boundary Review Board (BRB). The purposes of this study are:1.
To inform the Boundary Review Board as it considers its recommendation regarding Fairwoodincorporation;2.
To inform Fairwood residents as they make a decision whether to vote for or againstincorporation; and3.
To inform the broader public.This study answers two straightforward questions:
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Is it financially feasible to incorporate a new City of Fairwood? 2.
What are the potential implications of incorporation on local taxes and levels of service?
To answer these questions, the analysis team modeled annual revenues and costs of a hypotheticalCity of Fairwood. To give residents a meaningful point of comparison, the study seeks to answer thequestion in the context of the status quo:
How do the financial realities of incorporation compare with the status quo (remaining unincorporated)?
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The County undertook a governance study for the area in 2000, and determined that this study should therefore focusprimarily on the question of financial feasibility. Findings from the prior 2000 Petrovitsky Governance Study can be found athttp://www.metrokc.gov/budget/tranteam/petrovitsky/study/pcgs.htm.
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