Incorporation Study for Parkland, Spanaway, Midland, Frederickson (May 11, 2023)
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- Congressional materials
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- 2023 Commercereports Parkland Incorporation Study Final 4Ba280Fc 102B 4F94
- Case
- 2023 Commercereports Parkland Incorporation Study Final 4Ba280Fc 102B 4F94
Summary
An incorporation study dated May 11, 2023 for the communities of Parkland, Spanaway, Midland, Frederickson, North Clover Creek-Collins, Summit-Waller and Summit View, prepared by Community Attributes Inc. for the Washington State Department of Commerce. The report states it was directed by Section 128(133), Chapter 297, Laws of 2022 (SB 5693), which provided $200,000 for a consultant study of incorporating the communities into a single city and required submission to the legislature by June 1, 2023. Using a comparable city method based on Kent and Lakewood, it estimates revenues and costs for a hypothetical city of 20,164 acres with a 2022 population of 127,690. It reports assessed value of $20.6 billion in 2022, a taxable retail sales base of $3.2 billion in 2020, and an estimated general fund deficit between $4 million and $5 million a year from 2025 through 2030.
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“Incorporation Study for Parkland, Spanaway, Midland, Frederickson (May 11, 2023).”
Original at app.leg.wa.gov. Archived at Pandemic Darlings, https://pandemicdarlings.com/source-documents/2023-commercereports-parkland-incorporation-study-final-4ba280fc-102b-4f94/
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Incorporation study for Parkland,
Spanaway, Midland,
Frederickson, North Clover Creek-
Collins, Summit-Waller, and
Summit View
May 11, 2023
Prepared by:
Prepared for:
Community Attributes Inc. tells data-rich stories about communities
that are important to decision makers.
Community Attributes Inc. Washington State Department of
Commerce
President and CEO:
Chris Mefford Valerie Smith, AICP
Deputy Managing Director
Project Manager: Valerie.Smith@commerce.wa.gov
Michaela Jellicoe
Growth Management Services
Analysts:
Ethan Schmidt 1011 Plum St. SE
Carly Bednarski P.O. Box 42525
Erin Ezell Olympia, WA 98504-2525
Bryan Lobel
Jeff Raker www.commerce.wa.gov
Nicole Witenstein
For people with disabilities, this report
Community Attributes Inc. is available on request in other formats.
500 Union Street, Suite 200 To submit a request, please call 360-
Seattle, Washington 98101 725-4000 (TTY 360-586-0772)
www.communityattributes.com
CONTENTS
Executive summary .................................................................................................................. ii
Introduction .............................................................................................................................. 1
Methodology.............................................................................................................................. 3
General characteristics of the study area ...............................................................................13
Revenues ..................................................................................................................................17
Costs ........................................................................................................................................35
Financial Feasibility................................................................................................................45
Appendix A: Key Inputs and Assumptions .............................................................................50
Appendix B: Baseline and Alternative Scenarios ...................................................................52
Appendix C: Identification of Comparable City for Parkland, Spanaway, Midland and
Frederickson Study Area .........................................................................................................63
Appendix D: Study Area and Market Characteristics ............................................................69
Appendix E: Homelessness, Behavioral Health and Public Safety ........................................74
Appendix F: Parkland, Spanaway, Midland and Frederickson Study Area Land Use and
Current Zoning ........................................................................................................................84
Appendix G: Parkland, Spanaway, Midland and Frederickson Study Area Demographics,
Commute Trends and Existing Districts ..............................................................................103
Appendix H: Pierce County’s Countywide Planning Policies and Other Policies and
Programs Related to Annexation and Incorporation ............................................................115
Appendix I: Community Survey Results...............................................................................120
Appendix J: Incorporation Process........................................................................................126
Appendix K: Forms of Government and Implementation Considerations ...........................133
Appendix L: Overview of Incorporation Transition Activities .............................................138
Appendix M: Summary of Revenue Resources Available for Local Governments ...............151
INCORPORATION STUDY FOR PARKLAND, PAGE I
SPANAWAY, MIDLAND, & FREDERICKSON MAY 11, 2023
EXECUTIVE SUMMARY
Introduction
State law and countywide planning policies encourage unincorporated areas
located within Urban Growth Boundaries to consider incorporation or
annexation. State law governs the methods by which areas may be
incorporated or annexed, and both pathways require voter approval to
initiate. The Legislature tasked the Washington State Department of
Commerce with conducting a study on the potential fiscal feasibility of
incorporation for the communities of Frederickson, Midland, North Clover
Creek-Collins, Parkland, Spanaway, Summit-Waller and Summit View
(referred to as the Study Area).
The study is informational in nature and was not initiated by the residents of
the Study Area. To initiate an incorporation process, a resident of the
community must file a notice of incorporation with the county legislative
authority and garner signatures from at least 10% of registered voters in the
community. Once completed, the incorporation process still requires several
additional steps, including public hearings. Appendix J contains detailed
information on incorporation.
This study considers the core question that, if the Study Area were a fully
operating city, would its revenue be adequate to cover its expenses
to meet or exceed existing levels of service? To evaluate this question,
the study provides:
Financial feasibility of incorporation of the Study Area
Supplementary information about the community, including:
o Population, housing, and employment trends
o Housing market data
o Retail sales data
o Homelessness, behavioral health and crime data
o Land use and zoning
In-depth information pertaining to the incorporation process, and
state and Pierce County planning policies.
Authorizing legislation
The 2022 State Supplemental Operating Budget Section 128(133), Chapter
297, Laws of 2022 (SB 5693) directs Commerce to:
(133) $200,000 of the general fund — state appropriation for fiscal year 2023
is provided solely for the department to contract with a consultant to study
incorporating the unincorporated communities of Fredrickson, Midland,
North Clover Creek-Collins, Parkland, Spanaway, Summit-Waller, and
Summit View into a single city. The study must include, but not be limited
to, the impacts of incorporation on the local tax base, crime, homelessness,
infrastructure, public services, and behavioral health services, in the listed
INCORPORATION STUDY FOR PARKLAND, PAGE II
SPANAWAY, MIDLAND, & FREDERICKSON MAY 11, 2023
communities. The department must submit the study to the office of financial
management and the appropriate committees of the legislature by June 1,
2023.
Methodology
The financial feasibility analysis performed for this informational study
utilizes a “comparable city” methodology to estimate most general fund and
special revenue fund revenues and expenditures. The basis of the comparable
city method is to analyze the budget of a city similar across multiple facets,
such as size, population and location, to the potential incorporated city to use
as a reliable indicator of revenues and costs. This study considered multiple
comparable cities that were similar to the large size and general location of
the Study Area, with the cities of Lakewood and Kent serving as the basis of
comparison.
Kent is comparable in terms of population, housing units, median
income, land area, population density, and assessed value.
Lakewood is located in Pierce County, and is similar to the Study
Area in terms of jobs, demographics, and jobs to housing unit ratio.
To arrive at budget estimates, municipal budget data from the comparable
cities was converted to per capita revenues and costs, and those per capita
values were multiplied by the Study Area population to estimate Study Area
revenues and costs. It is inherent in the comparable city methodology that
the analysis assumes that the hypothetical incorporated city will invest in
levels of service similar to the comparable cities for each service, which is
factored into the choice of comparable cities.
While the comparable city methodology is appropriate for a majority of a
potential city’s budget, there are certain areas where more accurate
estimates can be achieved. These include:
Property tax, which utilizes assessed values within the Study Area.
Sales tax, which utilizes the taxable retail sales tax base in the Study
Area.
Real Estate Excise Tax (REET), which utilizes assessor data to
estimate annual sales and sales value within the Study Area.
Surface water fees, which uses current fees charged by the county
within the Study Area.
Capital costs, which utilizes projected costs from the county
applicable to the Study Area.
Park impact fees, which uses current fees charged by the county
within the Study Area.
Transportation Impact Fees, which uses current fees charged by
the county within the Study Area.
The analysis assumes the initial year of cityhood to be 2025 but does not
adjust for inflation so that alternative initial years can be utilized. As a
INCORPORATION STUDY FOR PARKLAND, PAGE III
SPANAWAY, MIDLAND, & FREDERICKSON MAY 11, 2023
result, the study analyzes projected population, housing, and employment
growth within the Study Area to capture changes in annual revenues or
expenditures. To provide context for how this growth impacts a hypothetical
incorporated Study Area’s budget, and provides alternative scenarios,
sensitivity analysis was performed modeling high and low growth estimates
alongside the baseline estimates. High growth estimates for population,
housing, and employment align with historic growth rates for the Study Area
based on data from the Washington State Office of Financial Management
and the Puget Sound Regional Council. Meanwhile, low growth estimates use
the minimum growth the Study Area is required to accommodate through
2044 as presented in the Pierce County Countywide Planning Policy growth
targets for population and housing; and the lowest observe historic growth
rates observed through multiple sources for employment growth.
Key findings
The Study Area, which primarily consists of the Parkland, Spanaway,
Midland, and Frederickson communities, totals 20,164 acres. The Study Area
excludes the community of Allison, as this area lies outside of the Urban
Growth Area (UGA).1 As of 2022, the Study Area’s population was 127,690
people. This would make it the seventh largest city in the state were it to be
incorporated. The Study Area is primarily comprised of residential use types,
while commercial clusters are concentrated alongside State Route 7, part of
Canyon Road, and along State Route 512 northeast of Parkland. Larger
industrial and commercial uses are primarily concentrated in Fredrickson,
which includes the Boeing Frederickson Fab Division.
Exhibit 1 on the next page provides the Study Area boundary.
If the Study Area were to incorporate, it is assumed that existing service
providers would continue to provide the following services:
Fire and EMS
All utility services
Public transit
Schools
Libraries
The Study Area city would take on the responsibility of providing the
following services:
Building and planning
City legislative authority
Public safety and police
Streets and sidewalks
1 Note: Unincorporated areas falling outside of Urban Growth Area boundaries are
unable to be incorporated.
INCORPORATION STUDY FOR PARKLAND, PAGE IV
SPANAWAY, MIDLAND, & FREDERICKSON MAY 11, 2023
Public works (including streets, surface water, and stormwater
management)
Community and economic development
Parks, recreation, and community services
Administration and finance
Municipal court
INCORPORATION STUDY FOR PARKLAND, PAGE V
SPANAWAY, MIDLAND, & FREDERICKSON MAY 11, 2023
Exhibit 1. Study Area boundary map
INCORPORATION STUDY FOR PARKLAND, PAGE VI
SPANAWAY, MIDLAND, & FREDERICKSON MAY 11, 2023
The analysis assumes general fund revenues will be utilized by an
incorporated Study Area to fund all city functions outside of capital projects.
Primary general fund revenues would be property taxes (37%), sales and use
taxes (32%), and utility taxes (13%). Property taxes would depend on the
assessed value of property within the Study Area’s boundary, which totaled
$20.6 billion in 2022 (2023 tax year).2 Meanwhile, sales tax revenues were
calculated using the taxable retail sales base within the Study Area, which
totaled $3.2 billion in 2020.3
To fund capital projects, special revenue funds were estimated utilizing a
range of comparison city and county sources. The analysis assumes that an
incorporated Study Area would have four primary special revenue funds at
the outset of cityhood:
Parks capital fund
Transportation capital fund
Real estate excise tax (REET) fund
Surface water management fund
Except for the REET fund, the remaining special revenue funds were chosen
based on the community’s desire for greater levels of services, as informed by
community outreach and engagement. The largest expenditures from the
analysis conducted for this study are public safety and police, public works,
and community and economic development. Together, these three
expenditure areas totaled about 85% of general fund expenditures. In
addition to general fund expenditures, the special revenue funds capture
capital expenditures pertaining to parks, transportation, and surface water
management.
Exhibit 2 presents the combined general and special fund balances obtained
through the feasibility analysis conducted in this study. From 2025 through
2030, it is estimated that an incorporated Study Area’s general fund would
be in a deficit between $4 million and $5 million per year. The balances of the
special revenue funds vary, with the transportation capital fund estimated to
have a negative balance between $1 million and $1.5 million from 2025
through 2030, and the remainder of the special revenue funds are estimated
to have a positive balance ranging from a few hundred thousand to as high as
$6.5 million a year. Real estate excise taxes can be used to support capital
infrastructure investments for streets or parks, depending on community and
city priorities.
While the analysis conducted for this study scrutinized data sources and
aimed to select the most appropriate data and methods available, the reader
should keep in mind the feasibility results are estimates only. There are
many factors that influence a city’s budget that cannot be captured in this
analysis, including fluctuating economic conditions, grant funding
2 Pierce County Assessor, 2023.
3 Washington State Department of Revenue, 2023.
INCORPORATION STUDY FOR PARKLAND, PAGE VII
SPANAWAY, MIDLAND, & FREDERICKSON MAY 11, 2023
opportunities, real estate conditions, and other community and economic
factors.
Exhibit 2. Study Area incorporation feasibility results, 2025 – 2030
Fund 2025 2026 2027 2028 2029 2030
General Fund
Fund Revenues $89,713,400 $90,644,300 $91,586,000 $92,538,600 $93,502,200 $94,477,700
Fund Expenditures $93,812,400 $94,925,700 $96,054,000 $97,196,600 $98,354,300 $99,526,700
Fund Balance ($4,099,000) ($4,281,400) ($4,468,000) ($4,658,000) ($4,852,100) ($5,049,000)
Transportation Capital Fund
Fund Revenues $3,341,500 $3,378,600 $3,410,800 $3,443,200 $3,475,900 $3,514,200
Fund Expenditures $4,779,500 $4,779,500 $4,779,500 $4,779,500 $4,779,500 $4,779,500
Fund Balance ($1,438,000) ($1,400,900) ($1,368,700) ($1,336,300) ($1,303,600) ($1,265,300)
Parks Capital Fund
Fund Revenues $1,136,300 $1,146,900 $1,154,000 $1,161,000 $1,168,100 $1,178,700
Fund Expenditures $890,000 $890,000 $890,000 $890,000 $890,000 $890,000
Fund Balance $246,300 $256,900 $264,000 $271,000 $278,100 $288,700
Real Estate Excise Tax Fund (REET)
Fund Revenues $6,232,700 $6,276,100 $6,319,700 $6,363,500 $6,407,700 $6,452,200
Fund Expenditures $0 $0 $0 $0 $0 $0
Fund Balance $6,232,700 $6,276,100 $6,319,700 $6,363,500 $6,407,700 $6,452,200
Surface Water Management Fund
Fund Revenues $6,776,100 $6,823,200 $6,870,600 $6,918,300 $6,966,300 $7,014,700
Fund Expenditures $640,300 $640,300 $640,300 $640,300 $640,300 $640,300
Fund Balance $6,135,800 $6,182,900 $6,230,300 $6,278,000 $6,326,000 $6,374,400
Sources: Washington State Office of Financial Management, 2023; U.S. Census, 2023; Pierce
County, 2023; Puget Sound Regional Council, 2023; City of Kent, 2023; City of Lakewood, 2023;
Community Attributes Inc., 2023.
INCORPORATION STUDY FOR PARKLAND, PAGE VIII
SPANAWAY, MIDLAND, & FREDERICKSON MAY 11, 2023
INTRODUCTION
Background and purpose
State law and county planning policies encourage unincorporated areas
within Pierce County’s Urban Growth Boundary to either incorporate as their
own city or annex to their neighboring cities. This study aids consideration of
the feasibility of incorporation for the communities of Frederickson, Midland,
North Clover Creek-Collins, Parkland, Spanaway, Summit-Waller and
Summit View.
This study is intended to provide a fiscal analysis of the potential for
incorporation among the selected communities, as well as supplementary
information on the community and the incorporation process. This study is
not part of an incorporation process and no petition for incorporation has
been submitted by a Study Area resident. The analysis and information
presented in this report is for informational purposes only.
Incorporation process
The incorporation process is designed to be local in nature (see RCW 35.02
and RCW 36.93). For a new city to be successful, it must have broad support
among area residents — support that will ultimately manifest in the form of
a direct vote for incorporation.
The incorporation process begins with the filing of a notice of incorporation
proposal with the county legislative authority by a resident(s) of the proposed
area. After the notice is filed, proponents gather voters’ signatures equal to
at least 10% of the registered voters of the proposed area of incorporation.
After the initial proposal is filed and proponents have collected sufficient
signatures, the Pierce County Boundary Review Board holds public hearings.
Once the petition is filed, the Boundary Review Board may also conduct
studies and factors in RCW 36.93.170-180. Ultimately, the Boundary Review
Board makes a recommendation in favor of or against incorporation. A
referendum would then be held among the residents of the proposed area of
incorporation to determine the ultimate success or failure of the proposed
incorporation.
If the incorporation election is successful, another election will be held to
elect the council who will preside over the city. The city incorporation
becomes effective between six months and a year after the first election. The
winners of the council election have the authority to make interim plans for
the new city to ensure a smooth transition on the date the new city is
formally incorporated.
No notice of proposal has been filed as of the date of this report’s publication.
INCORPORATION STUDY FOR PARKLAND, PAGE 1
SPANAWAY, MIDLAND, & FREDERICKSON MAY 11, 2023
Goals and objectives of the report
The goal of this report is to provide the governor, the Legislature and the
residents and businesses of the communities within the Study Area with
reliable and unbiased information with which to understand the financial
feasibility of incorporation. The primary question to be addressed is: If the
Study Area were a fully operating city, would its revenue be adequate to
cover its expenses to meet or exceed existing levels of service?
This report provides information about the financial feasibility of
incorporating the Parkland, Spanaway, Midland and Frederickson Study
Area.
Organization of this report
The remainder of this report is organized as follows:
Methodology. Describes the scope of the study, detailed methodology,
data sources and assumptions.
General characteristics of the Study Area. Presents a summary of
the general characteristics of the Parkland, Spanaway, Midland and
Frederickson Study Area.
Revenues. Provides analysis of the revenue (income) the Study Area
would likely receive were it to incorporate.
Costs. Contains analysis of the expenditures (costs) the Study Area
would likely incur were it to incorporate.
Financial feasibility. Presents analysis of the financial feasibility or
summary of costs and revenues for the Study Area were it to
incorporate.
Other factors. Describes other factors that Washington state law
requires the Boundary Review Board to consider.
Appendices. Provides additional and technical details that support
the analysis. Findings from a Community Survey are summarized in
Appendix I: Community Survey Results. Also included is supporting
information on the forms of government, process of incorporation,
incorporation transition steps, and information on local revenue
sources.
INCORPORATION STUDY FOR PARKLAND, PAGE 2
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METHODOLOGY
Financial feasibility
This study presents information about the financial feasibility of an
incorporated city for the Parkland, Spanaway, Midland and Frederickson
Study Area, bringing together the communities of Frederickson, Midland,
North Clover Creek-Collins, Parkland, Spanaway, Summit-Waller and
Summit View located within the Urban Growth Area (UGA). The purpose of
this report is to provide the best estimates of revenues and expenditures for
the newly incorporated city in the Study Area, so the reader can determine
whether the potential city’s revenues would be great enough to cover the
costs it would incur to provide existing or better services to its residents.
The results based on data and assumptions described in this report are
presented in subsequent sections. In addition, the section on Financial
Feasibility reports the alternative scenarios of several key variables that are
less likely, but not unrealistic. The two alternative scenarios represent
growth rates consistent with minimum growth required under the Pierce
County Countywide Planning Policies, as well as continued growth at the
highest rates observed, including employment growth consistent with rates
before the COVID-19 pandemic. The ongoing impact of the pandemic on
employment, population and housing unit growth remains uncertain. This
analysis uses a medium growth scenario, consistent with historically
observed rates of growth in the Study Area, but assuming rates of growth
slightly less than the highest rates in recent years.
Financial analysis is focused on the City’s first full year of operation and the
subsequent years following this start year. The analysis assumes an initial
year of cityhood to be 2025 but does not adjust for inflation so that
alternative initial years can be utilized. The only factor in analysis that
causes changes in annual revenues or costs is projected growth within the
Study Area.
This study also includes a multi-year forecast for the five years following
incorporation, which is 2026 through 2030. This analysis indicates whether
the assumed growth increases or decreases the relative surplus or deficit of
revenues compared to expenditures.
This methodology does not provide an analysis of the year during which
incorporation takes effect because most newly incorporated cities are only
operational for a partial fiscal year in the first year, and the unique cash
flows and exceptional sources of revenue for interim operations do not affect
the more important question of ongoing financial feasibility. This study
focuses on the ongoing feasibility of a potential incorporated city covering the
Study Area.
Factors to consider during the start-up of a new city include:
INCORPORATION STUDY FOR PARKLAND, PAGE 3
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Partial year operations
Transition to cash flow of key revenues such as property and sales
taxes
Initial cost of space and equipment
Arranging for contracts for continued service
Adoption of interim codes, ordinances, and plans
The cost of a comprehensive plan and associated environmental
assessments
Some services may be contracted initially, and some equipment may be
leased or purchased on credit. These are among the many issues a newly
incorporated city must consider. Information on transition activities is
documented in Appendix L: Overview of Incorporation Transition
Activities.
Services
Some of the services that cities provide are essential or core services and
others are discretionary. The city council determines which services to
provide, including the level of those services. The city council also decides
which services city government will not provide.
For the purposes of this study, the following city services are identified as
core or discretionary:
Core (non-discretionary) services and facilities
Building and planning
City administration
Fire
Police
Solid Waste
Stormwater
Streets and sidewalks
Wastewater
Water
Discretionary services and facilities
Parks and recreation
Human services
Library
Bicycle facilities
Transit support facilities
Discretionary services are not funded in this incorporation analysis, with the
exception of parks and recreation. Feedback from community outreach and
findings from a community survey indicate an interest in increasing the level
of service for parks and recreation within the Study Area. Therefore, the
analysis of city revenues and costs assumes the newly incorporated Study
Area will include funding for parks and recreation. Funding for human
INCORPORATION STUDY FOR PARKLAND, PAGE 4
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services and bicycle facilities would be determined by the potential city as
revenues allow. Transit support facilities are provided by Pierce Transit.
Additional county and regional parks within the Study Area are managed by
Pierce County, and libraries are provided by the Pierce County Library
System.
Identifying services as core or discretionary is not the last word
about city services. Cities will decide which core services will be provided
by other government agencies, by contracts, or by city employees. In addition,
cities may decide to provide some discretionary services if money is available,
or if another agency will continue to provide such services.
Other factors
Washington law (RCW 36.93.170) lists factors that the Boundary Review
Board must consider when considering a proposed incorporation. This
analysis focuses on the financial feasibility of the Study Area if it were to
incorporate, and not the elements to be reviewed by the Boundary Review
Board. However, these factors are listed below. Additional factors for which
data was collected as part of the fiscal analysis are documented in Appendix
D: Study Area and Market Characteristics and Appendix F: Parkland,
Spanaway, Midland and Frederickson Study Area Land Use and
Current Zoning.
According to RCW 36.93.170:
“In reaching a decision on a proposal or an alternative, the board shall
consider the factors affecting such proposal, which shall include, but not
be limited to the following:
(1) Population and territory; population density; land area and land uses;
comprehensive plans and zoning, as adopted under chapter 35.63, 35A.63,
or 36.70 RCW; comprehensive plans and development regulations adopted
under chapter 36.70A RCW; applicable service agreements entered into
under chapter 36.115 or 39.34 RCW; applicable interlocal annexation
agreements between a county and its cities; per capita assessed valuation;
topography, natural boundaries and drainage basins, proximity to other
populated areas; the existence and preservation of prime agricultural soils
and productive agricultural uses; the likelihood of significant growth in
the area and in adjacent incorporated and unincorporated areas during
the next ten years; location and most desirable future location of
community facilities;
(2) Municipal services; need for municipal services; effect of ordinances,
governmental codes, regulations and resolutions on existing uses; present
cost and adequacy of governmental services and controls in area; prospects
of governmental services from other sources; probable future needs for
such services and controls; probable effect of proposal or alternative on
cost and adequacy of services and controls in area and adjacent area; the
INCORPORATION STUDY FOR PARKLAND, PAGE 5
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effect on the finances, debt structure, and contractual obligations and
rights of all affected governmental units; and
(3) The effect of the proposal or alternative on adjacent areas, on mutual
economic and social interests, and on the local governmental structure of
the county.”
Comparable cities
This study is designed to estimate the revenues and costs of a hypothetical
incorporated city within the Study Area. This analysis uses the “comparable
city” method to develop estimates of most costs and revenues for the Study
Area. The premise of this method is that revenues and costs of another city
comparable to the Study Area are reliable indicators of the Study Area’s
revenues and costs. Ideally, analysis would use a single comparable city, but
given the large size and unique nature of the Study Area, two comparable
cities were used for this analysis. The city of Kent was chosen as a baseline
for the level of services desired by the residents residing within the Study
Area given its similarities in population, demographics, and land area, while
Lakewood was relied upon to give a better idea of the revenue sources and
expenditures for a city located close to the Study Area and located in Pierce
County. Municipal budget data from the comparable cities is converted to per
capita revenues and costs, and those per capita values are multiplied by the
Study Area population to estimate Study Area revenues and costs. It is
important to note that using the per capita costs of a comparable city
assumes that the hypothetical incorporated city will receive levels of service
similar to the comparable cities for each service.
The comparable city method begins with identifying criteria relevant to the
Study Area, such as population, jobs to housing ratio, and other key
indicators that should be comparable in other cities that could be considered
as an indicator of the Study Area’s revenues and costs.4 The next step is to
assemble data on these key indicators for cities in Pierce County that are
roughly comparable to the Study Area. Given the size of the Study Area,
cities in King County were also analyzed to provide a comparison similar in
population and job levels. These data points help identify the city that is
most comparable to the Study Area. The Department of Commerce and
Pierce County staff reviewed the recommendation of the cities of Lakewood
and Kent. They determined that the city of Kent is most comparable to a
hypothetical city in the Study Area, and the city of Lakewood provides an
additional comparison for the types of revenues and costs unique to the
geographic location of the Study Area. Detailed methods for each source of
revenue and expense are documented in subsequent sections.
4 See Appendix C: Identification of Comparable City for Parkland, Spanaway,
Midland and Frederickson Study Area for the criteria and comparable cities
considered for this study.
INCORPORATION STUDY FOR PARKLAND, PAGE 6
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When using the comparable city method, the current and future population
for the Study Area becomes an important consideration. Appendix B:
Baseline and Alternative Scenarios provides detailed analysis employed
to estimate current and forecasted population for the Study Area. In some
budget areas, a custom approach is used in lieu of the per capita comparison.
Additional methods
A few of the Study Area’s characteristics, costs, and revenues can be
estimated more accurately using methods other than the comparable city
method. Estimation of the following key baseline data and budget items
benefits from data specific to the Study Area.
Population and development
There are not currently estimates of population, housing or anticipated
growth rates published specifically for the Study Area. Data on population
and housing units by unincorporated UGA are sourced from the Washington
State Office of Financial Management’s Small Area Estimates Program
(OFM SAEP). Estimates for the Study Area combine population and housing
units for four unincorporated UGAs. Detailed methods and data sources for
both baseline and forecasted population and housing units are documented in
Appendix B: Baseline and Alternative Scenarios.
Property tax
Projection of future property tax revenues are estimated using the 2022 and
2023 assessed valuations of real property in the Study Area. These are from
2023 Pierce County Assessor data and GIS analysis. The assessed valuation
of the Study Area’s existing buildings and lands, predictions on the value and
tax revenues associated with new construction, and an assumed millage rate
allow for specific property tax revenue projections to be customized for the
Study Area.
Sales tax
The amount of sales tax received by a city is based in large part on the
amount of taxable retail sales activity at businesses in the city. Washington
state adopted the streamlined sales tax in 2008, where sales taxes are based
on the point of delivery and not the location of the businesses or warehouse.
Since there is a significant difference in the amount of business activity in
the Study Area compared to the comparable cities, sales taxes are not
estimated using the comparable city method. Retail sales taxes for the Study
Area are estimated based on custom data of taxable retail sales and sales
taxes provided by the Washington State Department of Revenue.
INCORPORATION STUDY FOR PARKLAND, PAGE 7
SPANAWAY, MIDLAND, & FREDERICKSON MAY 11, 2023
Real Estate Excise Tax (REET)
REET revenues are estimated for the Study Area based on predicted property
sales as well as the characteristics and value of existing residential and
commercial property located in the area.
Surface water fees
Surface water fee revenues are estimated for the Study Area based on the
current Pierce County rate of $145 per parcel for “base plus Water Quality
Services” that is charged to each housing unit in the Study Area.5
Capital costs
Each city’s capital costs depend on a variety of uniquely local circumstances.
Examples of variations include the age and condition of existing
infrastructure, level of service standards, and rates of growth. Capital
expenditures for the cities of Kent and Lakewood are not likely to be a good
forecast of the Study Area’s needs; therefore, forecasts are based on Pierce
County’s assessment of present condition and future needs for
infrastructures and capital improvements within the Study Area.
Park impact fees
Park impact fee revenues are estimated using the current impact fee rates
charged by Pierce County, as the analysis assumes a newly incorporated city
in the Study Area would be able to charge the same rate.
Transportation impact fees
Like park impact fee revenues, transportation impact fee revenues are
estimated using the current impact fee rates charged by Pierce County, as
the analysis assumes an incorporated Study Area would be able to charge the
same rate.
Receipt of grants and other revenue sources for mature cities
Federal, state and local grants and development impact fees are two primary
sources of revenue that take time for new cities to acquire. Both comparison
cities have been successful in securing grant revenues between 2021 and
2022. Due to the variable nature of grant revenues and the dependent nature
of grant revenues on future capital project needs, this analysis assumes no
grant revenues will be secured between 2025 and 2030. This is also a
conservative approach to estimating potential Study Area revenues. A newly
incorporated city would likely secure grant funding once capital projects
planning is complete.
5 https://www.piercecountywa.gov/1803/Surface-Water-Management-Utility-Service
INCORPORATION STUDY FOR PARKLAND, PAGE 8
SPANAWAY, MIDLAND, & FREDERICKSON MAY 11, 2023
Data sources
The data used in this study is sourced from state, regional and local sources.
Population, housing and employment
Pierce County
Puget Sound Regional Council
Washington State Office of Financial Management
U.S. Census Bureau
Revenues and costs
City of Lakewood
City of Kent
Pierce County
Washington State Department of Revenue
Municipal Research Services Center
Assumptions
The findings in this study depend on a combination of data and assumptions.
Understanding the assumptions is important to understanding the findings
of the study. Specific assumptions are identified throughout the report. There
are several assumptions that apply broadly to the analysis and are key to
understanding the findings.
Levels of service similar to comparable city
Fiscal feasibility of incorporation has been assessed based on the assumption
that a hypothetical incorporated Study Area would offer levels of service
similar to those currently provided by the comparable cities of Kent and
Lakewood, given similar levels of taxation in the Study Area.
Responsibility for services and facilities
When an area incorporates as a city, the responsibility for governmental
services and facilities fall into three categories:
Services that remain the responsibility of existing government
agencies
Services that become the responsibility of the new city
Services that the city can choose to provide itself or contract with an
existing government agency to provide.
Additionally, a new city does not necessarily have to provide services that
have become its responsibility, if they ensure the services are still provided
through a contract with an existing government agencies. For the purpose of
this study, such services are assumed to be provided. While the city may
choose to contract with another agency rather than hire employees, the city
is responsible for the service.
INCORPORATION STUDY FOR PARKLAND, PAGE 9
SPANAWAY, MIDLAND, & FREDERICKSON MAY 11, 2023
Services to be provided by existing agencies
Public Health – Tacoma-Pierce County Health Department
Schools – Bethel School District, Franklin Pierce School District,
Puyallup School District, Clover Park School District
State Roads – State of Washington
Transit – Pierce Transit and Sound Transit
Services to be provided by potential city
Land Use Planning and Regulation
Streets and Roads
Stormwater
Law enforcement (Police, Jail, Courts, Animal Control)
Administration (City Council, Mayor, City clerk, Attorney, Finance,
Personnel)
City Parks and Recreation
Services that residents continue to receive from existing agencies
Fire protection and emergency medical services – Central Pierce Fire
and Rescue and Fire District #021 Graham
Library – Pierce County Library District
Solid waste collection – LeMay Pierce County Refuse
Water – multiple water districts
Sewer – Pierce County Planning and Public Works Sewer Division
Population and housing
Analysis includes three forecasts of future growth rates using data sources
from the Washington State Office of Financial Management, Pierce County,
and U.S. Census Bureau. The methodology used for these forecasts are
presented in detail in Appendix B: Baseline and Alternative Scenarios.
Revenues and costs
This study assumes that taxes, fees and charges will continue at
approximately the same levels as at the time of analysis. Property tax and
sales tax base are calculated for the existing real property and economic
activity within the Study Area. New revenues are based on estimates of
growth within the area, including sales tax on new construction and new
consumer spending, property tax revenue from new development, and real
estate excise tax revenue based on anticipated market turnover. Revenue
sources not currently collected within the Study Area are included, and
revenue sources new to the Study Area are included only if used within one
of the comparable cities (Kent and Lakewood) and are widely used by cities
in Pierce County.
Costs of most services provided within the Study Area are assumed to be
approximately the same as the cost per capita within the comparable cities.
Capital costs however are not based on the comparable cities because of the
many factors that lead to different needs for capital improvements, such as
age and condition of existing infrastructure, and levels of service. For
INCORPORATION STUDY FOR PARKLAND, PAGE 10
SPANAWAY, MIDLAND, & FREDERICKSON MAY 11, 2023
potential capital costs, estimates are based on Pierce County’s existing
capital improvement and capital facilities plans, forecasts of future needs,
and recent expenditures within the Study Area.
Projections of revenues and costs for determining fiscal feasibility within this
study should be conservative. This means that, when in doubt, analysis
errs on the low side for revenues and the high side for costs.
This financial analysis is focused on the first full year of operation for an
incorporated Study Area city alongside the subsequent five years. Analysis
assumes the first year of municipal operation is 2025, but analysis is valid
for alternative initial years because the analysis does not adjust for inflation
in either the revenues or costs. The only factor within the analysis that
causes changes in annual revenue or costs is the amount of growth in the
Study Area.
Caveats
The reader is advised of the following attributes of this study:
There are no rankings of the Study Area compared to other cities in
Pierce County because the feasibility of incorporation in the Study
Area is absolute. It either works or does not, regardless of its position
relative to other cities.
There is no conclusion or recommendation of whether or not the Study
Area works as an incorporated city because our study reports the
results of the analysis and readers draw their own conclusion.
Fund accounting
Local government revenue, or income, comes from a variety of sources. Some
of the sources can be used for virtually any purpose, while others have
restrictions that limit the use of money to specific purposes. In order to keep
track of the restricted sources of revenue, cities create funds to account for
the restricted money. A fund is like a separate bank account for receiving and
spending money with specific restrictions. A typical city will have a fund for
stormwater, a fund for streets and other separate funds for various specific
revenue sources. All the money that has no restrictions goes into the General
Fund. Throughout this analysis, the fund used for the revenues and expenses
forecasted are clearly identified. In city finance terminology, funds are not a
synonym for revenue; they are separate accounts to track specific limits on
some city money.
To simplify the presentation of this analysis, all revenue and expense are
presented in five funds: general fund, transportation capital fund, parks
capital fund, real estate excise tax fund and surface water management fund.
In the real world of fund accounting, there would undoubtedly be more than
one surface water fund. Also, cities routinely use internal service funds and
inter-departmental cost allocations that are not included in this analysis.
INCORPORATION STUDY FOR PARKLAND, PAGE 11
SPANAWAY, MIDLAND, & FREDERICKSON MAY 11, 2023
The net effect of internal service funds and inter-departmental cost
allocations is zero, but they can have important implications for the
feasibility of individual funds. They are omitted from this analysis because
they are not necessary to achieve the initial feasibility of any of the five
funds analyzed.
INCORPORATION STUDY FOR PARKLAND, PAGE 12
SPANAWAY, MIDLAND, & FREDERICKSON MAY 11, 2023
GENERAL CHARACTERISTICS OF THE STUDY AREA
The Study Area contains portions of three unincorporated Community Plan
areas in Pierce County. The Parkland-Spanaway-Midland and Frederickson
Community Plan areas fall within the Pierce County Urban Growth
Boundary (UGB), while only the portion of the Mid-County Community Plan
area within the UGB is included. The majority of the Mid-County Community
Plan area lies outside of the UGB and is therefore excluded from the Study
Area. The gross land area of the Study Area is similar to the cities of Kent or
Bellevue, at 20,164 acres or 31.25 square miles.
A majority of the Study Area includes residential uses, with higher densities
closer to state routes and lower and moderate single family housing density
in areas further from the primary arterials. Small to mid-size commercial
uses are concentrated along SR-7, portions of Canyon Road, and SR-512 east
of Parkland. Larger scale commercial and industrial uses are concentrated in
the southeast portion of the Study Area: Boeing Frederickson, as well as
various materials, logistics, and warehouse industries. The Study Area
includes many institutional uses: Pacific Lutheran University, high schools,
middle schools, and elementary schools. Open spaces include a golf course,
Naches Trail Preserve, and areas around Clover Creek.
The following neighborhoods are captured in the Study Area: Brookdale,
Frederickson, Midland, Parkland, Spanaway, Summit. Exhibit 3 below
provides a map of the Study Area boundary.
Current zoning within the Study Area includes seven primary categories.
Employment corridor: Intensive commercial and industrial use in
Frederickson, east Parkland, and along I-5.
Town center: Districts dedicated to smaller and more concentrated
commercial use along SR-7.
Urban corridor: Areas with small to mid-size commercial uses
linking the town centers.
Neighborhood corridor: Areas adjacent to urban corridors that
buffer residential from more intensive commercial and industrial.
Mixed use district: Small districts at the north and south border of
the Study Area that intersect with primary arterials.
Residential: A sizable portion of the Study Area is zoned for low-
moderate residential use.
Parks and recreation: Small parks areas are found northwest of
Spanaway Lake and near northwest Fredrickson.
Exhibit 52 and Exhibit 53 in subsequent sections provide maps of land use
and zoning in the Study Area.
INCORPORATION STUDY FOR PARKLAND, PAGE 13
SPANAWAY, MIDLAND, & FREDERICKSON MAY 11, 2023
Exhibit 3. Parkland-Spanaway-Midland-Frederickson Study Area
INCORPORATION STUDY FOR PARKLAND, PAGE 14
SPANAWAY, MIDLAND, & FREDERICKSON MAY 11, 2023
Population
To forecast potential revenues and understand the impact of assumptions on
potential city revenues and costs, the analysis includes forecasts of future
population growth for the Study Area. Appendix B: Baseline and
Alternative Scenarios documents in detail the methodology and evaluation
of each of three growth scenarios and the data sources used. Exhibit 4
presents the population growth scenarios based on a baseline 2022
population of 127,690.
Exhibit 4. Study Area Population Growth Forecasts, 2015-2030
Sources: Washington State Office of Financial Management, 2023; Pierce County, 2023; U.S.
Census, 2023; Community Attributes Inc., 2023.
This study assumes that the most likely growth scenario is the “medium”
growth scenario of 1.3% annual average population growth. This assumes
that population will grow slightly slower than observed between 2010 and
2022, taking into account slowing growth observed between 2020 and 2022.
The low growth scenario is based on the growth targets adopted in the Pierce
County Countywide Planning Policies, representing the minimum growth
allowed for planning purposes under the Growth Management Act. The high
growth scenario assumes growth will continue at the same rate as observed
historically between 2010 and 2022.
Taxable assessed value
The Pierce County Assessor reports that the 2022 (2023 tax year) taxable
assessed value of real property in the unincorporated Study Area was nearly
$20.6 billion.6 In order to project the taxable assessed value to 2024, the
value on which year 2025 property taxes would be levied, analysis assumes
zero percent appreciation and nearly $126.6 million in new assessed value in
6 Taxable assessed value only includes land and building improvement values.
INCORPORATION STUDY FOR PARKLAND, PAGE 15
SPANAWAY, MIDLAND, & FREDERICKSON MAY 11, 2023
2024 from new construction. New assessed value per year is estimated based
on forecasted population and employment growth.
Using this approach, Exhibit 5 demonstrates the 2025 projection for taxable
assessed value of $21.2 billion and 2030 taxable assessed value of $21.8
billion. This is about $154,000 in taxable assessed value per resident in 2030.
Exhibit 5. Study Area assessed real property value, 2023, 2025, 2030
2023 2025 2030
Total Assessed Value (millions) $20,598 $20,850 $21,496
Sources: Pierce County Assessor, 2023; Washington State Office of Financial Management,
2023; Pierce County, 2023; Puget Sound Regional Council, 2023; U.S. Census, 2023;
Community Attributes Inc., 2023.
INCORPORATION STUDY FOR PARKLAND, PAGE 16
SPANAWAY, MIDLAND, & FREDERICKSON MAY 11, 2023
REVENUES
Incorporated cities typically rely on three key sources of revenue: property
tax, sales tax, and utility tax. Cities also collect revenues through other
sources, typically in smaller amounts. Exhibit 6 presents the estimated
general fund revenues for an incorporated Study Area in 2027.
Exhibit 6. Estimated general fund revenues by line item, 2027
Revenue Source 2027 Total % of Total
Property Tax $33,976,200 37.1%
Local Sales & Use Tax $29,377,500 32.1%
Brokered Natural Gas Use Tax $316,500 0.3%
Criminal Justice Sales Tax $2,921,400 3.2%
Utility Tax $11,458,600 12.5%
Gambling Tax $442,500 0.5%
Franchise Fees $1,484,700 1.6%
Licenses & Permits $4,982,100 5.4%
State Shared Revenues $5,007,900 5.5%
Charges for Services & Fees $460,500 0.5%
Fines & Forfeitures $1,158,100 1.3%
Total $91,586,000 100%
Sources: Washington State Office of Financial Management, 2023; U.S. Census, 2023; Pierce
County, 2023; Puget Sound Regional Council, 2023; City of Kent, 2023; City of Lakewood,
2023; Community Attributes Inc., 2023.
Exhibit 7 presents total estimated general fund revenues from 2025 through
2030.
INCORPORATION STUDY FOR PARKLAND, PAGE 17
SPANAWAY, MIDLAND, & FREDERICKSON MAY 11, 2023
Exhibit 7. Estimated general fund revenues, 2025 – 2030
Sources: Washington State Office of Financial Management, 2023; U.S. Census, 2023; Pierce
County, 2023; Puget Sound Regional Council, 2023; Community Attributes Inc., 2023.
Not all revenues estimated for the incorporated Study Area are accounted for
in the general fund and available to cover the expenses associated with
operations of the city. Several of the revenue sources included in the analysis
are restricted in use. For example, gas tax distributions “shall be used for
transportation services only” including, but not limited to “new construction,
reconstruction, and expansion of city streets, county roads, and state
highways and other transportation improvements.”7 Real estate excise taxes
must be used for capital improvements, and park impact fees must be used
for “publicly owned parks, open space, and recreational facilities”8 capital
projects. This analysis allocates all restricted revenues to separate funds.
Property tax
Property taxes are the primary source of city revenue for many of
Washington’s cities. The general fund levy will generate a majority of a city’s
property tax revenues, which represents unrestricted city revenue. However,
there are additional property tax options with restricted purposes, which can
be voted through by a city’s council or by its residents. Upon incorporation,
7 RCW 82.80.070
8 RCW 82.02.090
INCORPORATION STUDY FOR PARKLAND, PAGE 18
SPANAWAY, MIDLAND, & FREDERICKSON MAY 11, 2023
the Study Area’s property tax levy rate would be limited to a maximum of
0.16%. This is the result of the Study Area overlapping with the existing fire
and library districts serving the area. The maximum rate for cities not
annexed to a fire or library district is 0.36%. However, cities annexed to fire
and library districts are unable to charge property taxes on the portion
meant to go towards fire and library services when these services are
provided by public districts. The fire district levy can be as high as 0.15%,
while a library district levy can be as high as 0.05%. When these rates are
subtracted from the maximum city rate of 0.36%, the 0.16% maximum levy
rate is obtained.9 The math used to arrive at the 0.16% maximum levy rate
looks as follows: (0.36% – 0.15% – 0.05% = 0.16%). The analysis performed for
this study assumes existing providers will continue providing fire and library
services.
Currently, the Study Area is subject to eleven individual property tax levies.
These levies are for:
The state
Local school districts
Library districts
Port districts
Fire districts
Flood control districts
County roads
The county
Conservation futures fund
Transit
Emergency medical services
Upon incorporation, the Study Area would no longer be required to pay the
county roads tax, which is only charged to the unincorporated portions of a
county.10 Under the assumptions utilized by the analysis, property tax rates
would increase by $0.62 per $1,000 of assessed value, as the $0.98 per $1,000
county roads tax would be replaced by the city level of $1.60 per $1,000.
Exhibit 8 and Exhibit 9 present the current levy rates charged to the Study
Area and the assumed rates were the Study Area to incorporate.11
9 https://mrsc.org/explore-topics/finance/revenues/property-
tax#:~:text=Regular%20Levy%20Rate%20Limits,its%20true%20and%20fair%20valu
e.
10 “Revenue Guide for Washington Cities and Towns”, MSRC, December 2022.
11 Note: Taxing districts have different levies due to the interaction of different fire
and school districts.
INCORPORATION STUDY FOR PARKLAND, PAGE 19
SPANAWAY, MIDLAND, & FREDERICKSON MAY 11, 2023
Exhibit 8. Property tax levy rates, 2023
Taxing District Levies Prior to Incorporation
Levy
450 515 591 250 578 195
State $2.31 $2.31 $2.31 $2.31 $2.31 $2.31
Local School $3.13 $4.07 $4.43 $3.87 $4.43 $3.27
Library District $0.33 $0.33 $0.33 $0.33 $0.33 $0.33
Port District $0.13 $0.13 $0.13 $0.13 $0.13 $0.13
Fire District $0.77 $0.77 $0.77 $0.77 $1.00 $0.77
Flood Control District $0.10 $0.10 $0.10 $0.10 $0.10 $0.10
County Road $0.98 $0.98 $0.98 $0.98 $0.98 $0.98
County Tax $0.73 $0.73 $0.73 $0.73 $0.73 $0.73
Conservation Futures $0.03 $0.03 $0.03 $0.03 $0.03 $0.03
Transit $0.16 $0.16 $0.16 $0.16 $0.16 $0.16
EMS $0.50 $0.50 $0.50 $0.50 $0.40 $0.50
City N/A N/A N/A N/A N/A N/A
Total $9.17 $10.11 $10.47 $9.90 $10.59 $9.30
Sources: Pierce County, 2023; Community Attributes Inc., 2023.
Exhibit 9. Forecasted tax levy rates following incorporation
Forecasted Taxing District Levies Following Incorporation
Levy
450 515 591 250 578 195
State $2.31 $2.31 $2.31 $2.31 $2.31 $2.31
Local School $3.13 $4.07 $4.43 $3.87 $4.43 $3.27
Library District $0.33 $0.33 $0.33 $0.33 $0.33 $0.33
Port District $0.13 $0.13 $0.13 $0.13 $0.13 $0.13
Fire District $0.77 $0.77 $0.77 $0.77 $1.00 $0.77
Flood Control District $0.10 $0.10 $0.10 $0.10 $0.10 $0.10
County Road N/A N/A N/A N/A N/A N/A
County Tax $0.73 $0.73 $0.73 $0.73 $0.73 $0.73
Conservation Futures $0.03 $0.03 $0.03 $0.03 $0.03 $0.03
Transit $0.16 $0.16 $0.16 $0.16 $0.16 $0.16
EMS $0.50 $0.50 $0.50 $0.50 $0.40 $0.50
City $1.60 $1.60 $1.60 $1.60 $1.60 $1.60
Total $9.79 $10.73 $11.09 $10.52 $11.22 $9.93
The property tax levy rates presented in Exhibit 8 and Exhibit 9 differ by
tax district to account for the interplay between many taxing agencies. This
interplay causes property tax levy rates to differ from property to property
within the Study Area, while any properties served by the exact same
agencies will have the same levy rate. Upon incorporation, each of the
property tax levy rates above would remain the same except for the county
road levy of $0.98 per $1,000 of assessed value, which would be replaced by
the city levy rate of $1.60 per $1,000 of assessed value.
INCORPORATION STUDY FOR PARKLAND, PAGE 20
SPANAWAY, MIDLAND, & FREDERICKSON MAY 11, 2023
Unchanged levies
The following property tax levies will remain unchanged if the Study Area
incorporated:
State: The state property tax levy is paid by all properties throughout
the state and currently totals $2.31 per $1,000 of assessed value. This
levy is used to support schools.
Local school: Local school property taxes are paid by all properties
within a particular school district boundary. The Study Area is
currently served by five school districts.
Library district: Library districts can impose a property tax levy to
fund their operation. This levy is charged to all properties within a
library district.
Port district: Port districts can levy property taxes like other
districts. The port district levy applying to residents of the Study Area
currently totals $0.13 per $1,000 of assessed value.
Fire district: Fire districts can levy property taxes to fund their
operations. The Study Area is currently served by two fire districts:
Central Pierce Fire and Rescue and Graham Fire and Rescue, which
currently levy rates of $0.77 and $1.00 per $1,000 assessed value,
respectively.
Flood control district: Flood control district levies are an example of
non-voted regular levies able to be levied by special districts. The
current levy rate charged to properties in the Study Area totals $0.10
per $1,000 of assessed value.
County Tax: Counties can levy property taxes on all properties
within their boundary, which often represent a primary source of
county revenue.12 Pierce County’s current property tax levy rate is
$0.73 per $1,000 of assessed value.
Conservation futures: A conservation futures levy is a county-
imposed levy that can be used for purchasing open space and future
development rights. Pierce County’s current levy rate totals $0.03 per
$1,000 of assessed value.
Transit: The transit levy is imposed by the Central Puget Sound
Regional Transit Authority. The current rate charged to Study Area
properties totals $0.16 per $1,000 of assessed value.
EMS: An EMS levy can be imposed by any city, town, county, or
special district providing EMS services to fund emergency medical
care or emergency medical services.13 Emergency medical services are
currently provided by the two fire districts serving the Study Area,
which levy rates of $0.50 or $0.40 depending on the district.
12 “Revenue Guide for Washington Counties”, MSRC, December 2022.
13 https://mrsc.org/explore-topics/finance/revenues/ems-levies
INCORPORATION STUDY FOR PARKLAND, PAGE 21
SPANAWAY, MIDLAND, & FREDERICKSON MAY 11, 2023
Changed levies
The following are levies that would change upon incorporation of the Study
Area.
County road tax: The county road tax is imposed by the county and
only applies to properties falling within its unincorporated boundaries.
If the Study Area were to incorporate, the county road tax would no
longer be charged to properties within the Study Area boundary.
City: Upon incorporation, the Study Area would be able to impose a
city tax rate. As discussed, this levy rate would be capped at $1.60 per
$1,000 of assessed value.
Exhibit 10 presents the estimated property tax revenues, from 2025
through 2030, that the Study Area would collect were it to incorporate.
The estimated property tax revenues generated by the incorporated
Study Area would represent roughly 37% of total city revenues. The
analysis completed for this study assumes no appreciation or
depreciation of assessed values, but rather captures the estimated
increase in property tax revenues associated with forecasted growth
within the Study Area.
Exhibit 10. Property tax revenues, 2025 – 2030
Sources: Pierce County, 2023; Puget Sound Regional Council, 2023; Community Attributes
Inc., 2023.
The state of Washington caps a city’s total property tax levy, but the amount
of tax collected by a city can increase year over year. Named the “101%
limit,” this legislation requires that a city’s total property tax levy cannot
increase by more than 1% above the rate of inflation each year. This cap
excludes the levy rate on new construction.14 Since the analysis performed for
this study does not inflate revenues or costs, this cap did not come into play
in the modeling of property tax revenues.
14 “Revenue Guide for Washington Cities and Towns”, MSRC, December 2022.
INCORPORATION STUDY FOR PARKLAND, PAGE 22
SPANAWAY, MIDLAND, & FREDERICKSON MAY 11, 2023
Retail sales and use tax
Counties, cities and towns can impose local sales tax on top of the state-
imposed rate of 6.5%. These taxes typically apply to the retail sales of
“tangible personal property” by sellers with or without a physical presence in
the state. While most services are not subject to sales tax, some services such
as those pertaining to hotels and motels, landscape maintenance, and
physical fitness activities, to name a few, are subject to sales tax. Currently,
the Study Area’s retail sales and use tax rates range from 8% to 10%. The
first 6.5% is represented by the state-imposed tax, while the remaining 1.5%
to 3.5% is applied to all unincorporated areas in Pierce County depending on
their location relative to the county’s public transportation benefit areas and
hospital benefit zones.15
Typically, the majority of a city’s sales tax revenue will be generated by the
“basic” (or “first half”) and “optional” (or “second half”) sales tax. These two
rates can be imposed by Washington cities without voter approval. The “first
half” tax is a non-voted sales and use tax rate of 0.5% that is applied to any
taxable event. The “second half” sales tax is an additional and optional non-
voted sales tax that can be imposed in increments of 0.1% up to 0.5%. This
optional tax is currently imposed by all cities and towns in Washington
except Asotin and Clarkston. Cities retain 85% of the 1.0% tax, while the
remaining 15% goes to the county. The fiscal analysis assumes the
incorporated Study Area would impose the 1.0% total allowed by the state.16
To estimate the retail sales tax base, the analysis utilizes taxable retail sales
data provided by the Washington State Department of Revenue for the Study
Area in 2020. Using the 2020 data, a per capita estimate was developed and
used alongside population growth projections to estimate total sales and use
tax revenues that may be generated by an incorporated Study Area from
2025 through 2030. Exhibit 11 presents the estimated sales tax revenues
that would be generated within the incorporated Study Area.
Criminal justice service tax
In addition to the basic and optional sales tax imposed by the incorporated
Study Area, the city would receive sales tax revenue from the county-imposed
criminal justice service tax. The criminal justice service tax is a 0.1% sales
tax that only counties can impose, but the revenues are shared with cities.17
Pierce County imposes a 0.1% criminal justice service tax and distributes
revenues based on a per capita (population) basis. The analysis produced for
this study utilizes the per capita revenue figure distributed to the City of
Lakewood in 2022.
15 https://dor.wa.gov/sites/default/files/2023-
02/LSUflyer_23_Q2.pdf?uid=64348f178171c
16 “Revenue Guide for Washington Cities and Towns”, MSRC, December 2022.
17 “Revenue Guide for Washington Cities and Towns”, MSRC, December 2022.
INCORPORATION STUDY FOR PARKLAND, PAGE 23
SPANAWAY, MIDLAND, & FREDERICKSON MAY 11, 2023
Exhibit 11. Estimated sales and use tax revenues, 2025 – 2030
Sources: Pierce County, 2023; Puget Sound Regional Council, 2023; Washington State
Department of Revenue, 2023; Community Attributes Inc., 2023.
Utility tax
Any city or town may impose a utility tax, which falls under business and use
tax, on the income of utility companies. There are no maximum rates on
water, sewer, solid waste, or stormwater utilities. The rates for electric, gas,
steam, and telephone utilities are capped at 6% without voter approval.
Utility taxes may be imposed on the income of public or private utilities
providing services within the boundaries of the city. The city also has the
right to impose a tax on any city-owned utility services. The taxes are applied
to the gross revenues generated by utility companies and are not allowed to
be passed down to the customers.18 This analysis assumes the per capita
revenues generated by a utility tax are in line with the city of Lakewood,
which has a similar proportion of service coverage by public and private
utilities providing water, power, sewer, cable and solid waste. Exhibit 12
presents Lakewood’s current utility rates.
Exhibit 12. City of Lakewood utility tax rates, 2023
2023
Revenue Source
Rates
Electric 5.0%
Natural Gas 5.0%
Cable 6.0%
Cellular 6.0%
Telephone 6.0%
Solid Waste 6.0%
Stormwater 6.0%
Source: City of Lakewood, 2023.
18 “Revenue Guide for Washington Cities and Towns”, MSRC, December 2022.
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Brokered natural gas use tax
A brokered natural gas use tax can be imposed by any city or town that has a
natural gas utility tax, and must represent an equivalent "use tax" upon
brokered natural gas sales that are otherwise not subject to the jurisdiction's
utility tax. Brokered natural gas sales not subject to utility tax occur when
large customers bypass utilities and negotiate directly with independent
natural gas brokers.19 This analysis assumes per capita brokered natural gas
use tax revenue at $2 per capita, aligning with the city of Lakewood's per
capita revenues.
Exhibit 13. Estimated utility tax revenues, 2025 – 2030
Source: Pierce County, 2023; Puget Sound Regional Council, 2023; City of Lakewood, 2023;
Community Attributes Inc., 2023.
State-shared revenues
The State of Washington shares revenues with counties, cities and towns
across the state. The sources of these revenues range across a variety of tax
sources and are distributed on a per capita basis. Municipal Research
Services Center (MRSC) provide estimates of per capita revenues to be
distributed to each city, town and county to assist local governments to
develop budget forecasts.20 The revenue analysis for this study utilizes the
2023 per capita estimate provided by MRSC (Exhibit 14).
Exhibit 14. Per capita state-shared revenue estimates, 2023
Per Capita
Revenue Source
Revenues
Liquor Profits $7.65
Liquor Excise $6.86
Criminal Justice (population based) $0.36
Criminal Justice (special programs) $1.27
Gas Tax $18.20
19 “Revenue Guide for Washington Cities and Towns”, MSRC, December 2022.
20 https://mrsc.org/explore-topics/finance/budgets/state-shared-revenue-estimator
INCORPORATION STUDY FOR PARKLAND, PAGE 25
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Increased Gas Tax $1.14
Multi-Modal Distribution $1.30
Total $36.78
Source: MSRC, 2023.
Total estimated state-shared revenues are presented in Exhibit 15. The
analysis assumes the same per capita revenues provided by MRSC through
2030, while growth in state-shared revenues is captured through the
forecasted population growth within the Study Area.
Exhibit 15. Estimated state-shared revenues, 2025 – 2030
Source: MSRC, 2023; Puget Sound Regional Council, 2023; Pierce County, 2023; Community
Attributes Inc., 2023.
Other general fund revenues
Business and occupation (B&O Tax)
Business and occupations taxes can be imposed by Washington cities and
towns upon businesses operating within their jurisdiction. B&O tax revenues
are unrestricted and can be imposed without voter approval but may be
subject to a referendum.21 Currently, 49 of Washington’s 281 cities and towns
impose B&O taxes.22 B&O tax revenues are a component of Kent’s general
fund revenues, but B&O taxes have not been included in this analysis due to
their limited use throughout the state, and because they can require a
referendum.
Gambling tax
A gambling tax can be administered on gambling activities within a
jurisdiction, but the state limits the tax rate on these activities. Gambling
activities are ultimately regulated by the state, leaving cities and towns with
limited authority to regulate gambling. However, cities and towns do have
the ability to prohibit any or all gambling activities for which licenses are
21 “Revenue Guide for Washington Cities and Towns”, MSRC, December 2022.
22 Note: The City of Lakewood does not impose a B&O tax.
INCORPORATION STUDY FOR PARKLAND, PAGE 26
SPANAWAY, MIDLAND, & FREDERICKSON MAY 11, 2023
required.23 The analysis utilizes an average of the per capita gambling tax
revenues from the surrounding cities of Puyallup and University Place,
which equates to $3.25 per capita. This assumption was chosen since neither
of the two comparable cities have casinos, like the Study Area.
23 “Revenue Guide for Washington Cities and Towns”, MSRC, December 2022.
INCORPORATION STUDY FOR PARKLAND, PAGE 27
SPANAWAY, MIDLAND, & FREDERICKSON MAY 11, 2023
Exhibit 16. Maximum gambling tax rates
Gambling Activity Maximum Tax Rate
Actual costs of enforcement, not
Amusement Games
to exceed 2% of net receipts
Bingo 5% of net receipts
Punch boards or pull-tabs
10% of net receipts
(charitable or non-profit)
Punch boards or pull-tabs 5% of gross receipts or 10% of net
(commercial) receipts
Raffles 5% of net receipts
Social card games 20% of gross receipts
Source: MSRC, 2023.
Leasehold excise tax
A city can impose a local leasehold tax that is credited against the state
leasehold tax on the privilege of using or occupying publicly owned real or
personal property through a leasehold. This tax is applied to publicly owned
real or personal property and stands in lieu of property taxes.24 The analysis
assumes the Study Area will not generate Leasehold Excise Tax in the early
years of cityhood, as it will not own any public facilities at the outset of
incorporation.
Franchise fees
Franchise agreements are contracts between a city and public or private
utility providers that allow the providers to install, maintain, and repair
utility infrastructure within the city’s rights-of-way. A city is able to impose
a franchise fee on utility providers to recover any administrative costs of
administering the franchise. Franchise agreements typically last 10 to 20
years.25 The city of Lakewood currently charges franchise fees on light,
natural gas, and telephone utilities that cover the actual administrative
expenses incurred by the city directly related to the receiving and approving
of permits, licenses, or franchisees. These revenues come to about $70 per
Lakewood resident. Pierce County currently charges franchise fees
exclusively to cable companies, which generate about $11 per person in
county revenues.26 The analysis conducted for this study assumes that an
incorporated Study Area would take over the cable franchise fees within the
Study Area boundary and earn $11 per capita, while potential revenue may
be available upon franchise agreements being made with light, natural gas,
and telephone providers.
Charges for services and fees
Charges for services can include a range of revenue sources, including but
not limited to concealed pistol license permits, parks and recreation, public
24 “Revenue Guide for Washington Cities and Towns”, MSRC, December 2022.
25 “Revenue Guide for Washington Cities and Towns”, MSRC, December 2022.
26 https://www.piercecountywa.gov/362/Budget-Documents
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records copying charges, and in some cases contracted work for nearby
communities. The city of Kent does not provide information pertaining to its
charges for services revenue, but the city of Lakewood’s include parks and
recreation fees, court transport fees from the city of University Place and the
town of Steilacoom, towing impound fees, extra duty fees, and Western State
Hospital dispatch services.27 For this study, the analysis assumes Study Area
revenues generated by charges for services would align with Lakewood's per
capita revenues for any revenues not related to contracted work, which is
limited to parks and recreation fees, towing impact fees, and extra duty fees.
Licenses and permits
Licenses and permits include revenue generated by development permits,
business licenses, and other miscellaneous license and permit fees. The
analysis assumes license and permit per capita revenues to be the same as
Lakewood, whose license and permit revenues are from the following sources:
Business license fees
Alarm permits and fees
Animal license fees
Building permits
Plan review fees
Other zoning and development fees
The city of Kent’s revenue per capita estimate was not used in the analysis
because the city does not disclose the sources of licenses and permits
revenues.
Public safety fines and forfeitures
Fine and forfeiture revenues for incorporated cities are revenues generated
through civil and criminal penalties assessed through the city’s municipal
court. These revenues assume that if the Study Area were incorporated, it
would begin operating a municipal court, similar to Lakewood’s choice to
create a municipal court after its 1996 incorporation.28 The analysis utilizes
the per capita revenues generated by the city of Kent from fines and
forfeitures due to the similarities between the city of Kent and the Study
Area in terms of population level.
Intergovernmental
Intergovernmental revenues are those that come from another government.
These revenues primarily come from grants provided by the federal, state or
county government, but can include revenues generated from contracts to
provide services to surrounding cities or towns.29 The analysis for this study
27 City of Lakewood Proposed Biennial Budget 2023 – 2024.
28 City of Lakewood Proposed Biennial Budget 2023 – 2024.
29 “Revenue Guide for Washington Cities and Towns”, MSRC, December 2022.
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assumes no intergovernmental revenues within the timeframe of analysis for
the Study Area, were it to be incorporated.
Interfund transfers
Interfund transfers represent the exchange of revenues between a city's
different revenue funds.30 The analysis performed for this study assumes no
interfund transfers through 2030, for simplicity of analysis.
Other revenues
Other revenues typically include interest earnings earned by a city's
allowable public fund investments. The analysis for this study assumes no
interest revenues through 2030 for the Study Area were it to be incorporated.
An incorporated city would likely earn interest after the city is established
and has public fund investments.
Exhibit 17 presents the estimated tax revenues generated by the sources
discussed in this section.
Exhibit 17. Estimated other general fund tax revenues, 2025 – 2030
Total Revenues
Revenue Source
2025 2026 2027 2028 2029 2030
Licenses & Permits $4,855,900 $4,918,600 $4,982,100 $5,046,500 $5,111,700 $5,177,800
Franchise Fees $1,447,000 $1,465,700 $1,484,700 $1,503,800 $1,523,300 $1,543,000
Fines & Forfeitures $1,128,700 $1,143,300 $1,158,100 $1,173,100 $1,188,200 $1,203,600
Charges for Services & Fees $448,900 $454,700 $460,500 $466,500 $472,500 $478,600
Gambling Tax $431,300 $436,900 $442,500 $448,200 $454,000 $459,900
Total $8,311,800 $8,419,200 $8,527,900 $8,638,100 $8,749,700 $8,862,900
Sources: Washington State Office of Financial Management, 2023; U.S. Census, 2023; Pierce
County, 2023; Puget Sound Regional Council, 2023; City of Kent, 2023; City of Lakewood,
2023; Community Attributes Inc., 2023.
Special revenue funds
Special revenue funds represent funds that hold restricted city revenues; in
other words, revenues that must be used to serve a specific purpose. They
function as separate bank accounts kept by a city to ensure revenues are
allocated in the correct manner. The following revenue sources are used
specifically to fund capital improvements to transportation infrastructure,
parks, surface water infrastructure, sidewalks, and public right of ways.
Transportation capital fund
Two common sources of revenue for transportation-related capital funds
include a motor vehicle fuel tax and traffic impact fees. The motor vehicle
30 https://sao.wa.gov/bars_gaap/accounting/interfund-activities/interfund-activities-
overview/
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fuel tax (gas tax) is the single largest state-shared revenues source for cities
and towns. The revenues from the gas tax are distributed as a percent of
actual state fuel tax revenues received and depend on the number of gallons
sold within a city or town.31 The analysis uses the city of Lakewood’s per
capita revenue of $12.49 to estimate potential motor vehicle fuel tax revenues
for the Study Area, were it incorporated.
Traffic impact fees are fees charged to developers to mitigate the impacts of
new development and the increasing demand on infrastructure and capital
facilities required to serve the needs of growth. They are one-time fees
assessed by a city, town or county and do not require voter approval.32 Traffic
impact fee revenues utilize the current Pierce County rate used for the Study
Area, $5,229 per new housing unit, and utilize forecasted new housing units
to capture growth in these revenues from 2025 to 2030.
Parks capital fund
Similar to traffic impact fees, cities, towns, and counties have the authority
to charge park mitigation or impact fees to fund “publicly owned parks, open
space, and recreation facilities.”33 The analysis assumes that Pierce County
would transfer local parks to the city, which include the Dawson, Gonyea,
and Mayfair playfields. To provide funding to maintain these parks and fund
development of future parks, the analysis utilizes the current park impact fee
imposed by Pierce County, which totals $3,529 per new housing unit, to
estimate parks capital fund revenues. An incorporated city would have to
conduct a study on the needs for parks, as well as transportation, to serve
growth and the maximum allowable fee that the new city could charge.
Fire impact fees
Fire impact fees can be collected by cities and towns to fund “fire protection
facilities.”34 However, the two districts currently serving the Study Area,
Central Pierce Fire and Rescue and Graham Fire and Rescue, do not
currently charge impact fees and therefore the Study Area would not adopt
any impact fees upon incorporation. Additionally, fire impact fees imposed by
a fire district are collected by the city, if adopted, and the revenues are
transferred to the fire district and not retained by the city.
School impact fees
School impact fees typically only apply to residential construction or the
residential portion of mixed-use development, and must be spent by a school
district on school facilities. While school districts are responsible for
spending school impact fees, only cities, towns and counties are authorized to
31 “Revenue Guide for Washington Cities and Towns”, MSRC, December 2022.
32 “Revenue Guide for Washington Cities and Towns”, MSRC, December 2022.
33 “Revenue Guide for Washington Cities and Towns”, MSRC, December 2022.
34 “Revenue Guide for Washington Cities and Towns”, MSRC, December 2022.
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administer school impact fees.35 Pierce County currently facilitates a school
impact fee in unincorporated areas for school districts that have calculated
impact fees. A newly incorporated city would have to adopt the impact fees
for each school district for the school districts serving the Study Area to
continue to receive this revenue stream, which supports the capital costs of
school facilities. A school impact fee was not included in the analysis as the
revenue is not retained by the city, and administrative expenditures for such
programs should be captured in administrative expenditures of the General
Fund.
Real Estate Excise Tax (REET)
Any city or town may impose a tax on all real estate sales. For cities planning
under Washington’s Growth Management Act (GMA), REET can be
comprised of two halves. Referred to as REET 1 and REET 2, cities fully
planning under GMA can adopt the two halves of REET, each totaling 0.25%
and imposed upon all real estate sales within the jurisdiction’s boundaries.
REET 1 revenues are restricted and may only be used for certain capital
purposes. Meanwhile, REET 2 revenues are restricted and must be used for
certain transportation, water, storm, sewer and parks capital projects.
Neither REET 1 nor REET 2 require voter approval for cities required to plan
under GMA.36 The analysis conducted for this study assumes a city newly
incorporated in the Study Area would impose a total REET tax of 0.5%.
REET revenues can be volatile as they depend on the volume and sale value
of real estate transactions, causing revenues to ebb and flow with the
conditions of the real estate market. More information regarding the
calculation of REET revenues is provided in Appendix D: Study Area and
Market Characteristics.
Surface water management fund
Cities, towns, and counties within Washington have the authority to charge
fees to fund operations and capital improvements for surface water
management (SWM) facilities and programs. These fees are collected by the
county on a per parcel basis and are included in a property’s property tax
bill. They apply to residential parcels, transportation infrastructure and
agricultural land uses. Currently, Pierce County charges $145 per parcel for
“base plus Water Quality Services.”37 The Study Area is assumed to charge
the same SWM fees if it were to be incorporated.
Federal, state, and county grants
Cities and towns are eligible to compete for federal, state and county grants
for a variety of capital projects. Grants can be an important revenue source
for cities and necessary to complete certain capital projects desired by a
35 “Revenue Guide for Washington Cities and Towns”, MSRC, December 2022.
36 “Revenue Guide for Washington Cities and Towns”, MSRC, December 2022.
37 https://www.piercecountywa.gov/1803/Surface-Water-Management-Utility-Service
INCORPORATION STUDY FOR PARKLAND, PAGE 32
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jurisdiction. Both the city of Lakewood and the city of Kent have been
successful in securing grants in 2021 and 2022. In particular, Lakewood
secured grant revenues totaling $153 per capita to fund parks capital
projects.38 Due to the dependent nature of grant funding, the analysis
assumes no grant revenues through 2030 for the Study Area. This
assumption was chosen with the intention to not overestimate funding for
capital projects, despite the likelihood that the Study Area may win grant
funding as the Study Area determines priority capital and infrastructure
projects after incorporation.
Exhibit 18. Estimated revenues for special revenue funds, 2025 – 2030
Sources: Washington State Office of Financial Management, 2023; U.S. Census, 2023; Pierce
County, 2023; Puget Sound Regional Council, 2023; City of Kent, 2023; City of Lakewood,
2023; Community Attributes Inc., 2023.
Capacity to generate revenue
The revenue estimates in this study follow, as much as possible, the revenue
sources and rates of the comparable cities, Kent and Lakewood. Ideally, only
one comparable city would be utilized, but given the large size and unique
nature of the Study Area, two comparable cities were selected for this
analysis. The city of Kent was utilized as a baseline for the level of services
desired by the residents residing within the Study Area, while Lakewood was
relied upon to give a better idea of the revenue sources and expenditures for
a city located close to the Study Area and located in Pierce County. As noted
above, specific adjustments were made throughout the analysis to create the
most realistic picture of the Study Area’s potential revenue sources and the
level of those revenues, should it be incorporated.
It should be noted that cities have the capacity to generate additional
revenues based on alternative approaches that can be adopted by a city
council or with voter approval. For example, a newly incorporated Study Area
could:
38 City of Lakewood Adopted Biennial Budget, 2023-2024.
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Adopt a number of additional sales taxes through voter approval,
including a cultural access program sales tax, housing and related
services sales tax, or public safety sales tax.
Adopt additional property tax levies through voter approval, including
a cultural access program levy or emergency medical services (EMS)
levy.
Adopt a business and occupation tax, which would impose a tax on all
businesses located within the jurisdiction.
However, many of the revenue sources listed above will be restricted
revenues.
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COSTS
Municipalities typically provide several basic services, such as police, streets,
surface water and stormwater management. Many cities also provide parks
and recreational programs. Other services that may be provided by cities or
by separate districts include utilities, schools and fire protection.
This analysis assumes the following services will continue to be provided by
the same jurisdictions and districts that currently provide services within the
Study Area under incorporation: fire and EMS, utilities, transit and schools.
This analysis assumes that Pierce County would continue to own and operate
county and regional parks within the Study Area, while transferring local
parks to the newly created city. The following services would be managed by
a new city for the Study Area:
Public safety
Public works, including streets and surface water management
Community and economic development
Parks, recreation and community services
Administration and finance
Municipal court
A key aspect of the analysis is the use of funds, which act like individual
bank accounts for different sources and uses of revenue for various
government activities. In this analysis, the General Fund covers all costs
except for the capital costs for streets, parks and surface water management.
Streets, parks and surface water management are presented as special
revenue funds.
General Fund
Estimated expenditures for the general fund use a range of per capita
estimates from the city of Kent, city of Lakewood and Pierce County. When
available, per capita expenditures from the city of Kent’s 2023-2024 adopted
biennial budget were used, as it was identified as a city with similar
characteristics and offers greater levels of service compared to existing levels
of service in the Study Area. This is especially the case for desired services
identified through community outreach. The expenditures in the general
fund cover all the basic elements required to run a city, including salaries,
benefits, supplies, basic services costs, vehicles, facilities and equipment.
INCORPORATION STUDY FOR PARKLAND, PAGE 35
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Exhibit 19 and Exhibit 20 present general fund expenditure estimates.
INCORPORATION STUDY FOR PARKLAND, PAGE 36
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Exhibit 19. Estimated General Fund Expenditures by Line Item, 2027
Expenditure 2027 Total % of Total
City Council $291,900 0.3%
Administrative Services $3,243,300 3.4%
Community & Economic Development $9,484,300 9.9%
Parks, Recreation, & Community Services $448,600 0.5%
Public Works $14,884,500 15.5%
Municipal Court $3,820,300 4.0%
Finance $3,158,700 3.3%
Legal $3,701,600 3.9%
Police & Public Safety $57,020,800 59.4%
Total $96,054,000 100%
Sources: Washington State Office of Financial Management, 2023; U.S. Census, 2023; Pierce
County, 2023; Puget Sound Regional Council, 2023; City of Kent, 2023; City of Lakewood,
2023; Community Attributes Inc., 2023.
Exhibit 20. Estimated General Fund Expenditures, 2025 – 2030
Sources: Washington State Office of Financial Management, 2023; U.S. Census, 2023; Pierce
County, 2023; Puget Sound Regional Council, 2023; City of Kent, 2023; City of Lakewood,
2023; Community Attributes Inc., 2023.
Note: Other includes city council and parks, recreation, and community services expenditures.
INCORPORATION STUDY FOR PARKLAND, PAGE 37
SPANAWAY, MIDLAND, & FREDERICKSON MAY 11, 2023
City Council
City council expenditures capture the salaries, benefits, supplies, training
and other items associated with the functioning of the city council. The
expenditure analysis conducted for this study assumes that an incorporated
Study Area would adopt a mayor-council form of government to match Kent’s
form of government. The mayor-council structure is the most common
amongst code cities, with 147 of Washington's 197 code cities currently under
a mayor-council structure. The Study Area would also have the option to
choose a council-manager structure, opposed to the mayor-council structures.
Note, code cities are any unincorporated area with a population of at least
1,500 that have chosen to incorporate.39 Kent’s per capita estimate of $2.14
covers city council salaries and benefits in addition to any training or
professional services required.
Administrative Services
Administrative services can cover all facets of a city's government and
include a range of personnel or services. These services and personnel can
include oversight of programs, communication, financial reporting, budget,
audit coordination, accounting, cash management, IT, and fleet and
equipment administration. Kent and Lakewood’s administrative service costs
per capita were similar, with each near $24 per person. The analysis utilizes
Kent’s per capita costs of $23.82 per capita.
Community and Economic Development
Community and economic development costs cover a range of services
provided by a city. In the city of Lakewood, community and economic
development expenditures include housing, HOME and CDBG affordable
housing programs, and South Sound Military & Community Partnership
programs.40 The city of Kent's per capita estimate of $68.18 for community
and economic development includes spending on land use and development,
infrastructure and building codes, policy development, and business
recruitment and expansion efforts. The analysis utilizes Kent's per capita
spending on community and economic development.
Community and economic development expenditures also capture fire
coordination costs, which would be required for the Study Area if it were
incorporated. Since the analysis assumes the two fire districts currently
serving the Study Area will continue to serve the Study Area upon
incorporation, it is assumed that the Study Area would be responsible for fire
coordination regarding building inspection and plan review services. This
idea is modeled after Pierce County’s method for its unincorporated areas,
which are served by several fire districts and must have proper coordination
across the districts. To estimate fire coordination expenditures, the analysis
39 https://mrsc.org/explore-topics/governance/classification-of-washington-cities/city-
town-classification
40 City of Lakewood Proposed Biennial Budget 2023-2024.
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utilizes Pierce County’s fire coordination expenditures per capita, which
totals roughly $1.50.
Parks, Recreation and Community Services
Parks, recreation and community services capture all spending incurred by a
city preserving and maintaining parks, public buildings and landscaped
areas, in addition to programs and services that fall within their specific
parks and recreation department. There are currently 797 acres of parks in
the Study Area. Twenty-two of the park acres within the Study Area are
considered local parks by Pierce County, which the analysis assumes
ownership will be transferred to the Study Area if incorporated. The local
parks are Dawson, Gonyea and Mayfair playfields. Given the current
population of the Study Area and the 797 acres of parks, there is roughly
6.24 park acres per 1,000 people. This is slightly less than the City of Kent,
which has 7.8 park acres per 1,000 people, and well below Lakewood, which
has roughly 10.6 acres per 1,000 people, including several regional parks and
natural areas owned by Pierce County. The majority of parks acres within
the Study Area are regional parks, which would remain under the control of
Pierce County. Assuming transfer of ownership for the three local parks,
making up 22 acres, the city-provided level of service would be 0.02 acres per
person.
Residents of the Study Area expressed interest in a higher level of services
pertaining to parks and open space. The analysis reviewed the per acre cost
for select cities surrounding the Study Area, including for the city of
Lakewood, Puyallup, Tacoma, and University Place, in addition to
calculating costs per acre incurred by the city of Kent and Pierce County.
Puyallup and Kent had the highest cost per acre of park land totaling
roughly $20,000 in expenditures per park acre. The analysis utilizes the city
of Kent's per acre estimate of $20,388.65 to model a higher level of service
dedicated to parks and recreation in the Study Area, if it were incorporated.
Public Works
The estimated public works expenditures in the general fund capture
engineering, maintenance and operations costs associated with running the
Study Area’s surface water management and transportation programs.
Surface water management expenditures estimated for the Study Area upon
incorporation align with the city of Lakewood’s per acre expenditure of
$355.05, which includes storm water management expenditures, due to the
city’s proximity to the Study Area and the assumption that Lakewood has
similar system requirements for surface water management.
Expenditure estimates for an incorporated Study Area associated with
transportation engineering, maintenance and operations are assumed to
match Kent’s per capita estimate of $56.74, which was nearly $20 higher
than Lakewood’s per capita expenditures. Kent’s higher per capita estimates
were used because of the jurisdiction’s similarity in size, and because
INCORPORATION STUDY FOR PARKLAND, PAGE 39
SPANAWAY, MIDLAND, & FREDERICKSON MAY 11, 2023
residents of the Study Area have expressed a desire for significantly higher
levels of service related to roads, sidewalks and transportation compared to
current levels.41 Exhibit 21 presents estimated public works expenditures
from 2025 through 2030.
Exhibit 21. Estimated Public Works Expenditures, 2025 – 2030
Sources: Washington State Office of Financial Management, 2023; U.S. Census, 2023; City of
Kent, 2023; City of Lakewood, 2023; Community Attributes Inc., 2023.
Finance
A city's finance department covers a range of core operational services
undertaken by a city. Due to the similarity in size of Kent and the Study
Area and the desire for increased levels of service, the analysis uses the per
capita cost estimates from Kent's adopted biennial 2023-2024 budget. Kent’s
per capita finance expenditures totaled $23.20 in 2022.
Police
Residents of the Study Area also noted a desire for greater levels of police
service,42 expressed as a higher ratio of police officers to residents. The
unincorporated Study Area is currently served by the Pierce County Sheriff's
department, which averages around one officer for every 1,200 people living
in unincorporated Pierce County. However, this figure may differ depending
on stationing and the population density of unincorporated areas. Lakewood
contracts out special services, such as animal control personnel, to
Steilacoom and DuPont, and the city averages roughly 65043 residents per
police officer.44 The city of Kent averages roughly 900 residents per officer.
Due to an expressed desire for higher levels of police service, the analysis
41 See Appendix I: Community Survey Results.
42 See Appendix I: Community Survey Results.
43 The 650 figure excludes the populations of Dupont and Steilacoom as none of
Lakewood’s commissioned officers are denoted as animal services personnel.
44 https://cityoflakewood.us/wp-content/uploads/2022/03/Lakewood-PD-2021-Annual-
Report.pdf
INCORPORATION STUDY FOR PARKLAND, PAGE 40
SPANAWAY, MIDLAND, & FREDERICKSON MAY 11, 2023
conducted for this study utilizes Lakewood's police cost per capita estimate of
$418.78.
Municipal Court
It is not uncommon to contract out the responsibilities of a municipal court.
Among incorporated cities and towns within Pierce County, Carbonado,
DuPont, Eatonville, Edgewood, Ruston, South Prairie, Steilacoom, Sumner
and University Place contract their municipal courts. However, due to the
current backlog in court systems in the county and the large size of the Study
Area, the expenditure analysis for this study assumes a newly incorporated
Study Area would create its own municipal court. The expenditure analysis
performed for this study utilizes Kent’s per capita expenditure incurred of
$28.06. Kent operates its own municipal court system.
Legal
Jurisdictions can employ prosecutors or contract out the work of prosecuting
attorneys for their municipal courts. Lakewood and Kent do not contract
prosecutors for their municipal courts. To align with the municipal court
assumption outlined above, the city of Kent's per capita legal costs of $27.19
were utilized for this study.
Special Revenue Funds
Under the assumption that general operations and maintenance of
transportation and surface water management infrastructure and parks and
open spaces would be core services provided by the Study Area if it
incorporated, the only expenditures estimated for the special revenue funds
pertain to capital projects. The analysis conducted for this study uses a
simplified methodology to arrive at potential capital costs incurred by each
fund, presented below.
Transportation Capital Fund
The only expenditures assumed to affect the transportation capital fund are
capital project expenditures. To simplify capital expenditures, which are
often extremely variable, the analysis utilizes Pierce County’s 2022-2023
Biennial Budget Capital Improvements Program. The program outlines
projects currently underway and those scheduled to start soon to arrive at an
average annual cost of transportation projects from 2022 through 2027 for
projects that will take place within the Study Area. These projects include
resurfacing pavement efforts, which likely will be the most regular
expenditure captured within the fund. The annual average cost was then
applied to the transportation capital fund through 2030.
INCORPORATION STUDY FOR PARKLAND, PAGE 41
SPANAWAY, MIDLAND, & FREDERICKSON MAY 11, 2023
Exhibit 22 presents the transportation capital projects planned by Pierce
County that will occur within the Study Area.
INCORPORATION STUDY FOR PARKLAND, PAGE 42
SPANAWAY, MIDLAND, & FREDERICKSON MAY 11, 2023
Exhibit 22. Planned Transportation Capital Projects, Study Area,
2022 – 2027
Cost
Project Name
(2022-2027)
86th Ave Extension $50,000
112 St E Illumination $119,000
112 St S $3,998,000
121 St S $4,000
159 St S/159 St E $540,000
160 St E $2,100,000
168 St E $1,270,000
ADA Improvement Program - 2022 $444,000
Canyon Rd E - Asphalt Overlay $2,881,000
Canyon Rd E - Southerly Ext $11,770,000
Safe Routes to School - 104 St E $1,356,000
Safe Routes to School - 168 St E $1,291,000
Steele St E $2,854,000
Total $28,677,000
Source: Pierce County, 2021.
Parks Capital Fund
The analysis assumes, like for the transportation capital fund, that the parks
capital fund will cover capital expenditures while all maintenance,
engineering and operations costs associated with parks are captured in the
general fund. The same methodology was used to arrive at parks capital
expenditures. The analysis utilizes Pierce County’s 2022-2023 Biennial
Budget Capital Improvements Program to arrive at an average annual cost of
parks and open space projects from 2023 through 2027 that are planned for
the Study Area. The annual average cost was then applied to the parks
capital fund through 2030.Exhibit 23 presents the parks capital projects
planned by Pierce County that will affect local parks within the Study Area.
Exhibit 23. Planned Parks Capital Projects, Study Area, 2023 – 2027
Cost
Project Name
(2023-2027)
Gonyea Playfield Improvements $1,350,000
Mayfair Playfield Improvements $900,000
Parkland Community Trail $2,200,000
Total $4,450,000
Source: Pierce County, 2021.
Note: Pierce County only provides capital expenditures for parks from 2023
through 2027, and no data for 2022 capital expenditures.
Real Estate Excise Tax (REET)
The real estate excise tax fund is not estimated to have any costs outside of
any administrative expenditures incurred by the program, which are
INCORPORATION STUDY FOR PARKLAND, PAGE 43
SPANAWAY, MIDLAND, & FREDERICKSON MAY 11, 2023
included in the general fund. REET funds are restricted to uses for capital
expenditures; therefore, these funds could be used to support a variety of
capital funding needs and may be transferred to the appropriate fund. The
analysis for this study has not speculated as to which funds REET revenues
may be transferred into and which types of projects they may help fund.
However, these funds can be used to cover both parks and transportation
capital expenditures documented in the Transportation Capital Fund and
Parks Capital Fund.
Surface Water Management Fund
The analysis created expenditure estimates for the surface water
management fund the same way it created expenditure estimates for the
transportation capital and parks capital funds. Again, the Pierce County’s
2022-2023 Biennial Budget Capital Improvements Program was used to
arrive at an average annual cost of surface water management projects from
2022 through 2027 that are planned for the Study Area. The annual average
cost was then applied to the surface water management capital fund through
2030.
Exhibit 24. Planned Surface Water Management Projects, Study Area,
2022 – 2027
Cost
Project Name
(2022-2027)
Clover Creek Water Quality Retrofit #1 $1,710,000
Centers and corridors facility $2,132,000
Total $3,842,000
Source: Pierce County, 2021.
Exhibit 25 presents the average annual capital expenditures estimated for
each fund.
Exhibit 25. Estimated Average Annual Capital Expenditures
Sources: Pierce County, 2023; Community Attributes Inc., 2023.
INCORPORATION STUDY FOR PARKLAND, PAGE 44
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FINANCIAL FEASIBILITY
The purpose of this study is to provide the reader with as much information
regarding the assumptions, data and methodology used for the financial
analysis undertaken so that they can make well-informed decisions regarding
the potential feasibility of an incorporated Study Area. Since incorporation is
a decision made by the residents of an area, the study aims to let the reader
decide whether they feel incorporation would be feasible for the Study Area.
The reader should note that the results presented in this section are
estimates and not guaranteed figures for revenues or expenditures. For
example, if the Study Area were to incorporate and become more established,
they would be able to build upon their parks and recreation department by
taking on a greater degree of capital projects and increasing funding through
county, state or federal grants. Additionally, city budgets can be significantly
impacted by the general economic conditions and therefore take on an
inherent degree of uncertainty.
Exhibit 26 presents general fund revenues and expenditures for 2027, a year
which assumes the by which the incorporated Study Area would be more
established.
INCORPORATION STUDY FOR PARKLAND, PAGE 45
SPANAWAY, MIDLAND, & FREDERICKSON MAY 11, 2023
Exhibit 26. Estimated General Fund by Line Item, 2027
Sources: Washington State Office of Financial Management, 2023; U.S. Census, 2023; Pierce
County, 2023; Puget Sound Regional Council, 2023; City of Kent, 2023; City of Lakewood,
2023; Community Attributes Inc., 2023.
INCORPORATION STUDY FOR PARKLAND, PAGE 46
SPANAWAY, MIDLAND, & FREDERICKSON MAY 11, 2023
Exhibit 27. Estimated General Fund Revenues and Expenditures, 2025 – 2030
% of Fund
General Fund 2025 2026 2027 2028 2029 2030
2025
Revenues
Property Tax 37% $33,563,600 $33,769,200 $33,976,200 $34,184,500 $34,394,200 $34,605,800
Local Sales & Use Tax 32% $28,632,900 $29,002,800 $29,377,500 $29,757,000 $30,141,500 $30,531,000
Brokered Natural Gas Use Tax 0% $308,500 $312,500 $316,500 $320,600 $324,700 $328,900
Criminal Justice Sales Tax 3% $2,847,400 $2,884,200 $2,921,400 $2,959,200 $2,997,400 $3,036,100
Utility Tax 12% $11,168,200 $11,312,400 $11,458,600 $11,606,600 $11,756,600 $11,908,500
Gambling Tax 0% $431,300 $436,900 $442,500 $448,200 $454,000 $459,900
Franchise Fees 2% $1,447,000 $1,465,700 $1,484,700 $1,503,800 $1,523,300 $1,543,000
Licenses & Permits 5% $4,855,900 $4,918,600 $4,982,100 $5,046,500 $5,111,700 $5,177,800
State Shared Revenues 5% $4,881,000 $4,944,000 $5,007,900 $5,072,600 $5,138,100 $5,204,500
Charges for Services & Fees 1% $448,900 $454,700 $460,500 $466,500 $472,500 $478,600
Fines & Forfeitures 1% $1,128,700 $1,143,300 $1,158,100 $1,173,100 $1,188,200 $1,203,600
Total Revenues 100% $89,713,400 $90,644,300 $91,586,000 $92,538,600 $93,502,200 $94,477,700
Expenditures
City Council 0% $284,500 $288,200 $291,900 $295,700 $299,500 $303,400
Administrative Services 3% $3,161,100 $3,201,900 $3,243,300 $3,285,200 $3,327,700 $3,370,700
Community & Economic Development 10% $9,243,900 $9,363,300 $9,484,300 $9,606,800 $9,731,000 $9,856,700
Parks, Recreation, & Community Services 0% $448,600 $448,600 $448,600 $448,600 $448,600 $448,600
Public Works 16% $14,688,700 $14,785,900 $14,884,500 $14,984,300 $15,085,400 $15,187,800
Municipal Court 4% $3,723,500 $3,771,600 $3,820,300 $3,869,700 $3,919,700 $3,970,300
Finance 3% $3,078,700 $3,118,400 $3,158,700 $3,199,500 $3,240,900 $3,282,700
Legal 4% $3,607,800 $3,654,400 $3,701,600 $3,749,400 $3,797,800 $3,846,900
Police & Public Safety 59% $55,575,600 $56,293,400 $57,020,800 $57,757,400 $58,503,700 $59,259,600
Total Expenditures 100% $93,812,400 $94,925,700 $96,054,000 $97,196,600 $98,354,300 $99,526,700
General Fund Balance ($4,099,000) ($4,281,400) ($4,468,000) ($4,658,000) ($4,852,100) ($5,049,000)
Sources: Washington State Office of Financial Management, 2023; U.S. Census, 2023; Pierce County, 2023; Puget Sound Regional
Council, 2023; City of Kent, 2023; City of Lakewood, 2023; Community Attributes Inc., 2023.
INCORPORATION STUDY FOR PARKLAND, PAGE 47
SPANAWAY, MIDLAND, & FREDERICKSON MAY 11, 2023
Exhibit 27 itemizes general fund revenues and expenditures from 2025
through 2030. The increases in revenues and expenditures are caused by
population, housing and employment growth. Property taxes and sales and
use taxes represent the largest sources of revenues, representing nearly 70%
of total revenues. Meanwhile, police and public safety expenditures represent
the largest share of expenditures (59%). The annual fund balance from 2025
through 2030 is estimated to be between negative $4 million and $5 million.
Exhibit 28 presents revenues and expenditures for each of the special
revenue funds, which include the following:
Transportation Capital Fund
Parks Capital Fund
Real Estate Excise Tax (REET) Fund
Surface Water Management Fund
The transportation capital fund is the only fund estimated to have a negative
balance, however, the estimates presented below assume no interfund
transfers or grant revenues. Available REET revenues exceed the negative
balance for the transportation capital fund. REET revenues are restricted
and may not be used for operations or maintenance activities.
Exhibit 28. Estimated Special Revenue Funds Revenues and Expenditures,
2025 – 2030
Fund 2025 2026 2027 2028 2029 2030
Transportation Capital Fund
Fund Revenues $3,341,500 $3,378,600 $3,410,800 $3,443,200 $3,475,900 $3,514,200
Fund Expenditures $4,779,500 $4,779,500 $4,779,500 $4,779,500 $4,779,500 $4,779,500
Fund Balance ($1,438,000) ($1,400,900) ($1,368,700) ($1,336,300) ($1,303,600) ($1,265,300)
Parks Capital Fund
Fund Revenues $1,136,300 $1,146,900 $1,154,000 $1,161,000 $1,168,100 $1,178,700
Fund Expenditures $890,000 $890,000 $890,000 $890,000 $890,000 $890,000
Fund Balance $246,300 $256,900 $264,000 $271,000 $278,100 $288,700
Real Estate Excise Tax Fund (REET)
Fund Revenues $6,232,700 $6,276,100 $6,319,700 $6,363,500 $6,407,700 $6,452,200
Fund Expenditures $0 $0 $0 $0 $0 $0
Fund Balance $6,232,700 $6,276,100 $6,319,700 $6,363,500 $6,407,700 $6,452,200
Surface Water Management Fund
Fund Revenues $6,776,100 $6,823,200 $6,870,600 $6,918,300 $6,966,300 $7,014,700
Fund Expenditures $640,300 $640,300 $640,300 $640,300 $640,300 $640,300
Fund Balance $6,135,800 $6,182,900 $6,230,300 $6,278,000 $6,326,000 $6,374,400
Sources: Washington State Office of Financial Management, 2023; U.S. Census, 2023; Pierce
County, 2023; Puget Sound Regional Council, 2023; City of Kent, 2023; City of Lakewood,
2023; Community Attributes Inc., 2023.
INCORPORATION STUDY FOR PARKLAND, PAGE 48
SPANAWAY, MIDLAND, & FREDERICKSON MAY 11, 2023
Exhibit 29 presents the fund balances obtained from the sensitivity
analysis. The sensitivity analysis looks at low and high growth scenarios for
employment, housing and population growth within the Study Area alongside
the baseline scenario. More information pertaining to the alternate scenarios
tested can be found in Appendix B: Baseline and Alternative Scenarios.
Exhibit 29. Sensitivity Analysis Summary, 2027 and 2030
2027 2030
Fund Low High Low High
Baseline Baseline
Growth Growth Growth Growth
Fund Balance
General Fund ($4,468,000) ($3,811,700) ($4,370,100) ($5,049,000) ($3,964,746) ($4,910,434)
Transportation
($1,368,700) ($1,427,100) $1,396,500 ($1,265,300) ($1,348,200) $1,438,857
Capital Fund
Parks Capital Fund $264,000 $249,900 $2,155,500 $288,700 $274,570 $2,155,527
Real Estate Excise
$6,319,700 $6,317,300 $6,535,800 $6,452,200 $6,448,316 $6,808,941
Tax Fund (REET)
Surface Water
$6,230,300 $6,227,700 $6,465,200 $6,374,400 $6,370,125 $6,762,187
Management Fund
Sources: Washington State Office of Financial Management, 2023; U.S. Census, 2023; Pierce
County, 2023; Puget Sound Regional Council, 2023; City of Kent, 2023; City of Lakewood,
2023; Community Attributes Inc., 2023.
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A P P E N D I X A: K E Y I N P U T S A N D A S S U M P T I O N S
Exhibit 30. Key Inputs and Assumptions (1 of 2)
Input Value Unit Source
Study Area Baseline Data
Office of Financial Management
Population (2022) 127,693 People
(OFM)
Housing Units (2022) 45,791 Units OFM
Puget Sound Regional Council
Employment (2022) 26,324 Jobs
(PSRC)
Pierce County Assessor, Community
Total Assessed Value (2023) $20,597,842,600
Attributes Inc. (CAI)
Total Assessed Value (2022) $16,679,648,700 Pierce County Assessor, CAI
Total Acreage 20,164 Acres Pierce County Assessor
Total Park Acres 172 Acres Pierce County Assessor
Washington State Department of
TRS per capita (2020) $25,384
Revenue (DOR), PSRC
Development & Finance
Assumptions
City Property Tax Millage Rate 1.6 MSRC
Assessed Value per Housing Unit $369,573 Pierce County Assessor, CAI
Sale Value per Housing Unit $436,896 Pierce County Assessor, CAI
Commercial Assessed Value
$25,683 Pierce County Assessor, PSRC, CAI
per Employee
Commercial AV to Sale Value
$1.70 Pierce County Assessor, CAI
(2022)
Assessed Value Revaluation
0.00% CAI
Rate
Construction Cost as a % AV 80.00% CAI
Annual Residential Turnover
Rate (% homes resold each 5.49% Pierce County Assessor, CAI
year)
Sales Tax Rate 1.00% DOR
Sales Tax Revenue Retained by
85.00% MSRC
City
Kent Baseline Data
Population (2022) 137,900 People OFM
Total Acreage 21,600 Acres OFM
Parks Acres 1,096 Acres City of Kent
Lakewood Baseline Data
Population (2022) 63,800 People OFM
Total Acreage 10,918 Acres OFM
Parks Acres 471 Acres City of Lakewood
Pierce County Baseline Data
Incorporated Land Area 95,795 Acres OFM
Total Land Area (Acres) 1,067,496 Acres OFM
Source: Community Attributes Inc., 2023.
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Exhibit 31. Key Inputs and Assumptions (1 of 2)
Input Value Unit Source
REET Inputs
Residential Re-sale Count (2022) 1,936 Unique Sales Pierce County Assessor, CAI
Residential Re-sale Value (2022) $845,831,584 Pierce County Assessor, CAI
Commercial Re-sale Value (2022) $145,244,293 Pierce County Assessor, CAI
Total Commercial Resale Value
as Percent of Total Residential 0% Pierce County Assessor, CAI
Resale Value (20 year-average)
REET Tax Rate 0.50% MSRC
Capital Improvement Project
Inputs
Transportation Capital Fund -
$4,779,500 Pierce County, CAI
Average Annual Expenditures
Parks Capital Fund - Average
$890,000 Pierce County, CAI
Annual Expenditures
Surface Water Management
Fund - Average Annual $640,333 Pierce County, CAI
Expenditures
Other Inputs
Transferred Park Acres 22 Acres Pierce County, CAI
SWM Principal (2022) - within
$142.81 Pierce County Assessor
study area
SWM Principal (2023) $144.94 Pierce County Assessor
Lakewood Stormwater
Management Expenditures Per $88.43 City of Lakewood
Acre (2022)
Source: Community Attributes Inc., 2023.
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A P P E N D I X B: B A S E L I N E A N D A L T E R N A T I V E S C E N A R I O S
This appendix presents two alternative scenarios of the financial feasibility
of incorporation. The body of this study contains the "baseline" scenario. It
reflects outcomes that may be most likely given current and past conditions.
The two scenarios in this appendix are defined as the "low growth" scenario
and the "high growth" scenario. Each scenario is compared to the baseline
scenario referred to in the body of the report.
The purpose of testing alternative scenarios is to examine the underlying
impacts of key assumptions used to estimate the Parkland, Spanaway,
Midland and Frederickson Study Area's costs and revenues if incorporated.
Only selected assumptions are altered for scenario testing. Additionally, the
baseline scenario is not assumed to be the median of the three scenarios for
each variable modified. The analysis presented in the body of the report aims
to capture the most realistic scenario for a future City. The goal of the low
growth scenario is to examine the impacts of slowed population growth,
meeting planned growth targets, while the high growth scenario aims to
capture the impacts of continued high population, housing units and
employment growth. Exhibit 32 demonstrates the key assumptions analyzed
for alternative scenarios.
Exhibit 32. Population and Employment Growth Rates by Scenario, 2023-
2035
Low Med High
Population 0.8% 1.3% 1.9%
Housing Units 0.7% 0.7% 1.4%
Employment 1.0% 1.2% 1.4%
Sources: Washington State Office of Financial Management, 2023; Pierce County Countywide
Planning Policies; 2023; U.S. Census, 2023; Community Attributes Inc., 2023.
Low Growth Scenario
The low growth scenario adjusts population and employment growth
assumptions compared to the baseline. For population and housing units,
these growth assumptions are aligned with the adopted Pierce County
Countywide Planning Policy growth targets. These growth targets represent
the minimum growth the Study Area is required to accommodate through
2044. In all cases but employment growth, the adopted growth targets are
lower than historic growth rates based on multiple data sources.
Population growth targets are the most significant input driving the
feasibility analysis. However, both housing unit growth and employment
growth drive and serve as inputs for some sources of revenue. The per capita
comparable city approach is used to calculate many costs and estimates of
revenue for the Study Area, thus population growth drives a significant
portion of estimated municipal costs and revenues. The intention of the low
INCORPORATION STUDY FOR PARKLAND, PAGE 52
SPANAWAY, MIDLAND, & FREDERICKSON MAY 11, 2023
growth scenario is to understand the potential impacts on municipal costs
and revenues from reduced growth compared to the baseline.
High Growth Scenario
The high growth scenario aims to demonstrate the fiscal impacts should
growth continue at the rates seen between 2010 and 2022, and pre-COVID
employment growth rates between 2010 and 2020. Population growth is
projected at 1.9% annually, while housing units and employment are
projected at 1.4% annually. These growth rates align with historic growth
rates for the Study Area based on data from the Washington State Office of
Financial Management and the Puget Sound Regional Council.
Comparison of Alternative Scenarios
Exhibit 33 and
INCORPORATION STUDY FOR PARKLAND, PAGE 53
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Exhibit 34 present the variability in general fund and special revenue fund
estimates under the low and high growth scenarios.
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Exhibit 33. Alternative Scenarios General Fund Estimates, 2027
2027
General Fund
Baseline Low Growth High Growth
Revenues
Property Tax $33,976,200 $33,952,300 $34,944,700
Local Sales & Use Tax $29,377,500 $28,729,600 $30,207,100
Brokered Natural Gas Use Tax $316,500 $309,500 $325,400
Criminal Justice Sales Tax $2,921,400 $2,857,000 $3,003,900
Utility Tax $11,458,600 $11,205,900 $11,782,200
Gambling Tax $442,500 $432,800 $455,000
Franchise Fees $1,484,700 $1,451,900 $1,526,600
Licenses & Permits $4,982,100 $4,872,300 $5,122,800
State Shared Revenues $5,007,900 $4,897,400 $5,149,300
Charges for Services & Fees $460,500 $450,400 $473,600
Fines & Forfeitures $1,158,100 $1,132,600 $1,190,800
Total Revenues $91,586,000 $90,291,700 $94,181,400
Expenditures
City Council $291,900 $285,500 $300,100
Administrative Services $3,243,300 $3,171,800 $3,334,900
Community & Economic Development $9,484,300 $9,275,100 $9,752,100
Parks, Recreation, & Community
$448,600 $448,600 $448,600
Services
Public Works $14,884,500 $14,714,100 $15,102,600
Municipal Court $3,820,300 $3,736,100 $3,928,200
Finance $3,158,700 $3,089,100 $3,247,900
Legal $3,701,600 $3,619,900 $3,806,100
Police & Public Safety $57,020,800 $55,763,200 $58,631,000
Total Expenditures $96,054,000 $94,103,400 $98,551,500
General Fund Balance ($4,468,000) ($3,811,700) ($4,370,100)
Sources: Washington State Office of Financial Management, 2023; U.S. Census, 2023; Pierce
County, 2023; Puget Sound Regional Council, 2023; City of Kent, 2023; City of Lakewood,
2023; Community Attributes Inc., 2023.
INCORPORATION STUDY FOR PARKLAND, PAGE 55
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Exhibit 34. Alternative Scenarios Special Revenue Fund Estimates, 2027
2027
General Fund
Baseline Low Growth High Growth
Transportation Capital Fund
Fund Revenues $3,410,800 $3,352,400 $6,176,000
Fund Expenditures $4,779,500 $4,779,500 $4,779,500
Fund Balance ($1,368,700) ($1,427,100) $1,396,500
Parks Capital Fund
Fund Revenues $1,154,000 $1,139,900 $3,045,500
Fund Expenditures $890,000 $890,000 $890,000
Fund Balance $264,000 $249,900 $2,155,500
Real Estate Excise Tax Fund (REET)
Fund Revenues $6,319,700 $6,317,300 $6,535,800
Fund Expenditures $0 $0 $0
Fund Balance $6,319,700 $6,317,300 $6,535,800
Surface Water Management Fund
Fund Revenues $6,870,600 $6,868,000 $7,105,500
Fund Expenditures $640,300 $640,300 $640,300
Fund Balance $6,230,300 $6,227,700 $6,465,200
Sources: Washington State Office of Financial Management, 2023; U.S. Census, 2023; Pierce
County, 2023; Puget Sound Regional Council, 2023; City of Kent, 2023; City of Lakewood,
2023; Community Attributes Inc., 2023.
Impacts of the Low Growth Scenario on Incorporation
Generally, the low growth scenarios had a small impact on revenue and
expenditure estimates. For the General Fund, lower revenues caused by
slower population, housing and employment growth was offset by reduced
expenditures, causing the fund balance to be more financially viable, albeit
by a small margin. A low growth scenario remained very near the baseline
levels.
Impacts of the High Growth Scenario on Incorporation
The high growth scenario saw significantly higher impacts on revenues and
expenditures, likely caused by the greater housing unit growth rate
compared to the baseline scenario. However, the higher growth rates had an
offsetting effect on general fund revenues and expenditures and returned a
fund balance near that seen in the baseline scenario. The high growth
scenario’s impact on the surface water management fund and REET fund
mirrored that of the general fund, while the transportation capital and parks
capital fund experienced significantly higher revenues driven by the large
increase in impact fee revenues, which are charged to new housing units.
INCORPORATION STUDY FOR PARKLAND, PAGE 56
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Baseline and Forecast Methodology
The remainder of this section presents an overview of methodologies used to
estimate baseline population and demographic data for the Parkland,
Spanaway, Midland and Frederickson Study Area and estimate future
population and employment growth scenarios.
Baseline Population and Housing Units
Existing data sources do not provide population and housing unit estimates
for the Study Area boundary. However, the Study Area covers and matches
exactly the boundaries of four unincorporated urban growth areas (UGA) in
Pierce County. Population and housing unit figures were derived from the
2022 Washington State Office of Financial Management's Small Area
Estimates Program (OFM SAEP), compiling the unincorporated UGA areas
of Frederickson, Mid-County, Midland and Parkland. (Exhibit 35)
Exhibit 35. Study Area Population and Housing Units, 2022
Unincorporated Housing
Population
UGA Units
Parkland 74,540 27,030
Fredrickson 31,890 10,790
Mid-County 12,350 4,720
Midland 8,920 3,250
Study Area 127,700 45,790
Sources: Washington State Office of Financial Management, 2023; Community Attributes Inc.,
2023.
Baseline Demographics
Currently, there are no existing sources of demographic data published
specifically for the Parkland, Spanaway, Midland and Frederickson Study
Area, therefore existing data sources were leveraged to best represent
current and future conditions in the area.
Demographic statistics for the Study Area are estimated using U.S. Census
Bureau block groups, county parcels and county assessor data. The Census
and Washington State Office of Financial Management (OFM) publish
population and housing estimates by block group. The Study Area is covered
by 94 block groups. Of these, 67 block groups are completely contained by the
Study Area while the remaining 27 fall along the Study Area boundary,
covering areas both within and outside of the Study Area.
In addition, Pierce County assessor parcel data provides a method to
understand the number of housing units within the Study Area. The Study
Area includes 36,670 parcels (Exhibit 44). The assessor data provides a
convenient means to allocate block group data to areas within and outside
the Study Area. Each block group that borders the Study Area is divided into
two sections, the area inside the Study Area and the area outside the Study
INCORPORATION STUDY FOR PARKLAND, PAGE 57
SPANAWAY, MIDLAND, & FREDERICKSON MAY 11, 2023
Area. Using the assessor data, the number of housing units can be calculated
for each portion of each of the block groups bordering the Study Area. To
accomplish this, parcels within each block group are identified by whether
they are located inside or outside the Study Area boundary. Housing unit
counts are aggregated for the parcels inside the Study Area and the parcels
outside the Study Area for each block group. The resulting housing unit
counts for both portions of each block group can be used to assign a
percentage of units within the Study Area, creating a ratio for each block
group.
To estimate demographic statistics for each block group area inside the Study
Area, known statistics for each block group are multiplied by the unit ratio.
Statistics for the entire Study Area are then estimated by summing the
resulting totals with the known statistics for each block group entirely
contained within the Study Area. Data sources for each variable include:
Median Household Income: U.S. Census Bureau 2020 American
Community Survey 5-Year Estimates Table B19013
Sex and Age: U.S. Census Bureau 2020 American Community Survey
5- Year Estimates Table B15003
Race: U.S. Census Bureau 2020 Decennial Census Table P1
Educational Attainment: U.S. Census Bureau American Community
Survey 5-Year Estimates Table B01001
Exhibit 36 shows the parcel housing units within the Study Area and for the
whole block group, and the resulting share of units within each block group
within the Study Area.
INCORPORATION STUDY FOR PARKLAND, PAGE 58
SPANAWAY, MIDLAND, & FREDERICKSON MAY 11, 2023
Exhibit 36. Share of Units in Study Area by Block Group, 2022
Block Group Parcel Housing % of Units in
Block Group
Housing Units Units Study Area
530530714162 649 625 96%
530530714112 390 380 97%
530530713053 297 295 99%
530530713052 202 154 76%
530530716012 353 334 95%
530530716031 421 409 97%
530530717053 496 447 90%
530530717051 328 302 92%
530530717032 515 123 24%
530530717041 711 553 78%
530530729011 0 0 0%
530530715034 559 537 96%
530530713051 231 224 97%
530530713061 139 68 49%
530530713062 8 1 13%
530530714031 652 621 95%
530530713063 609 605 99%
530530716014 483 350 72%
530530716011 491 399 81%
530530717031 206 0 0%
530530716013 393 384 98%
530539400042 1 0 0%
530530731333 295 261 88%
530530712062 479 476 99%
530530712063 283 280 99%
530530731311 400 393 98%
530530711002 1 0 0%
All Other Block Groups 34,657 34,652 100%
Total 44,249 42,873 97%
Sources: Pierce County Assessor, 2023; Community Attributes Inc., 2023.
Forecast and Growth Scenario Methods
In 2022, the baseline population in the Study Area is 127,700 compared to
nearly 102,400 in 2010, representing growth of 1.9% annually. For the
purpose of analyzing the feasibility of incorporation, three growth scenarios
examine the implications of growth and their impact on potential feasibility.
Exhibit 32 shows a comparison of the estimated annual growth rates or
compound annual growth rates (CAGR) for the three potential growth
scenarios. For the purposes of this study, the medium growth scenario
represents the baseline, at a CAGR of 1.3% annually for population, 0.7%
annually for housing units and 1.2% annually for employment.
Analysis of multiple data sources, both forecasted and historic, results in a
series of growth forecasts for population, housing units and employment.
INCORPORATION STUDY FOR PARKLAND, PAGE 59
SPANAWAY, MIDLAND, & FREDERICKSON MAY 11, 2023
Population Forecasts
Population forecasts leverage data from the Washington State Office of
Financial Management, the U.S. Census Bureau and the Pierce County
Countywide Planning Policies. Population forecasts are presented in Exhibit
4.
The low growth population scenario is based on an analysis of the adopted
Pierce County Countywide Planning Policies (CPPs) planned growth between
2020 and 2044. The CPPs project annual growth of 0.9% between 2020 and
2044 for HCT Communities. HCT Communities include the urban areas
within the Mid-County, Parkland-Spanaway-Midland and South Hill
Community Plan boundaries. This geography covers a portion of the Study
Area, but also includes the South Hill Community Plan area. The CPPs
project growth of 1.4% annually for all urban unincorporated areas outside of
the HCT communities, these areas include the Frederickson Community Plan
area.
Using 2020 population data for urban unincorporated areas is used to
estimate the proportion of population within the HCT Communities and
Other Urban Unincorporated areas by each urban unincorporated area. The
2044 population for each urban unincorporated area was estimated based on
the 2010-2022 compound annual growth rate (CAGR) and controlled to the
projected 2044 total population for the HCT and Urban Unincorporated areas
from the CPPs. The 2020 and 2044 population controlled to the CPPs is
summed to the distinct Study Area geography, comprised of the Mid-County,
Midland, Parkland, and Frederickson urban areas. Projected population
growth for the Study Area is 0.8% annually between 2020 and 2044.
The medium growth scenario is based on historic population growth between
2010 and 2021 sourced from the U.S. Census American Community Survey 5-
Year Estimates Table S0101. Analysis combines the census designated places
(CDP) of Parkland, Spanaway, Midland, Frederickson and Summit View.
This represents only a portion of the Study Area but excludes CDPs that are
primarily located outside of the UGA. Estimated annual growth based on
historic growth is 1.3% annually.
The high growth scenario is based on historic estimates of population for
each urban unincorporated area covering the Study Area sourced from the
OFM SAEP. Estimated population for the Study Area in 2010 was nearly
102,400 and grew to 127,700 in 2022, representing a compound annual
growth rate of 1.9%. Growth rates are higher between 2015 and 2022 (2.2%
annually), however, growth rates declined between 2020 and 2022 (0.9%
annually).
Housing Forecasts
Housing forecasts also leverage data from the Washington State Office of
Financial Management, the U.S. Census Bureau and the Pierce County
INCORPORATION STUDY FOR PARKLAND, PAGE 60
SPANAWAY, MIDLAND, & FREDERICKSON MAY 11, 2023
Countywide Planning Policies. The low and medium growth scenarios for
housing unit growth are the same, confirmed through two methods. Similar
to projected population growth, growth is projected based on the CPPs as well
as the U.S. Census American Community Survey 5-Year Estimates Table
B25001. Both methods project annual housing unit growth of 0.7%. Historic
growth between 2010 and 2022 based on OFM SAEP urban unincorporated
areas is 1.4% annually, which is used as the high growth estimate. Historic
housing unit rate growth varies annually, however, between 2010 and 2022
as well as 2015 and 2022 growth has been stable at 1.4% annually. Between
2020 and 2022, annual growth declined to 1.3% annually.
Exhibit 37. Study Area Housing Unit Growth Forecasts, 2015-2030
Sources: Washington State Office of Financial Management, 2023; Pierce County, 2023; U.S.
Census, 2023; Community Attributes Inc., 2023.
Employment Forecasts
Employment forecasts leverage historic data for the Study Area from the
Puget Sound Regional Council, as well as Countywide Planning Policy
growth forecasts. The low growth scenario is based on 2010 to 2021 historic
annual growth within the Study Area, forecasting growth of 1.0% annually.
This forecast accounts for declines in employment between 2020 and 2021
during the COVID-19 pandemic. The high growth forecast also leverages
historic employment growth in the Study Area between 2010 and 2020 of
1.4% annually. The Study Area has seen consistent growth in employment
except for 2008 to 2012 and between 2020 to 2021.
The medium growth scenario is based on forecasted employment growth from
the Pierce County CPPs. Detailed employment data by urban unincorporated
data is unavailable to replicate employment growth estimates for the Study
Area. However, employment growth is projected at 1.2% annually for both
HCT Communities and Other Urban Unincorporated Areas. The medium
growth scenario is projected at 1.2% annually for the Study Area.
INCORPORATION STUDY FOR PARKLAND, PAGE 61
SPANAWAY, MIDLAND, & FREDERICKSON MAY 11, 2023
Exhibit 38. Study Area Employment Growth Forecasts, 2015-2030
Sources: Pierce County, 2023; Puget Sound Regional Council, 2023; Community Attributes
Inc., 2023.
INCORPORATION STUDY FOR PARKLAND, PAGE 62
SPANAWAY, MIDLAND, & FREDERICKSON MAY 11, 2023
A P P E N D I X C: I D E N T I F I C A T I O N O F C O M P A R A B L E C I T Y F O R
PARKLAND, SPANAWAY, MIDLAND AND FREDERICKSON STUDY
AREA
This study uses a comparable city method to develop estimates for most costs
and revenues for the Study Area. The premise of this method is that another
city that is comparable to the Study Area can provide revenue and cost data
that is a reliable indicator of the Study Area's revenues and costs.
The Cities of Lakewood and Kent were selected as the most comparable cities
to the Study Area. This appendix outlines the criteria used to select the
Cities of Lakewood and Kent. The comparable cities used in this analysis are,
in alphabetical order:
Auburn
Bellevue
Federal Way
Kent
Lakewood
Redmond
Renton
Sammamish
Tacoma
Exhibit 39 provides basic characteristics of the Study Area and selected
2022
2022 Persons Median 2021 Employment
Jurisdiction Housing
Population per HU Income Employment to HU
Units
Study Area 127,700 45,800 2.8 $72,100 26,012 0.6
Tacoma 220,800 93,700 2.4 $70,000 105,000 1.1
Bellevue 153,900 65,900 2.3 $140,300 144,872 2.2
Kent 137,900 49,700 2.8 $79,800 70,101 1.4
Renton 107,500 43,700 2.5 $84,400 60,723 1.4
Federal Way 101,800 38,000 2.7 $73,000 29,160 0.8
Auburn 88,800 32,600 2.7 $79,400 43,046 1.3
Redmond 75,300 33,200 2.3 $147,000 96,444 2.9
Sammamish 68,200 22,800 3.0 $195,600 7,767 0.3
Lakewood 63,800 27,100 2.4 $60,500 26,570 1.0
comparable cities. The 2022 population of the Study Area is 127,700
compared to 137,900 in Kent and 63,800 in Lakewood. The population of the
Study Area would be the seventh largest city in the state of Washington.
There are limited comparable cities in terms of population. The City of
Tacoma had a population of more than 220,000 in 2022. The City of Kent has
the closest comparable population to the Study Area, followed by the City of
Everett. In 2022, there were nearly 45,800 housing units in the Study Area
compared to 49,700 in Kent. Cities such as Bellevue and Renton, while
somewhat similar to the Study Area in terms of population and housing
INCORPORATION STUDY FOR PARKLAND, PAGE 63
SPANAWAY, MIDLAND, & FREDERICKSON MAY 11, 2023
units, differ from the Study Area in other characteristics, such as jobs to
housing unit ratio, assessed value per person and demographic
characteristics.
The City of Lakewood, while smaller than the Study Area in terms of
population, land area and housing units, is located in Pierce County and was
cited by Pierce County staff as the best possible comparison city within the
County. Tacoma, as the second largest city in Washington, as well as a
significantly larger and long-established city is not a comparable city to the
Study Area, confirmed by Pierce County staff.
Persons per housing unit is relatively consistent across the cities presented
in
Exhibit 39, with Kent providing the closest comparison. Estimated median
2022
2022 Persons Median 2021 Employment
Jurisdiction Housing
Population per HU Income Employment to HU
Units
Study Area 127,700 45,800 2.8 $72,100 26,012 0.6
Tacoma 220,800 93,700 2.4 $70,000 105,000 1.1
Bellevue 153,900 65,900 2.3 $140,300 144,872 2.2
Kent 137,900 49,700 2.8 $79,800 70,101 1.4
Renton 107,500 43,700 2.5 $84,400 60,723 1.4
Federal Way 101,800 38,000 2.7 $73,000 29,160 0.8
Auburn 88,800 32,600 2.7 $79,400 43,046 1.3
Redmond 75,300 33,200 2.3 $147,000 96,444 2.9
Sammamish 68,200 22,800 3.0 $195,600 7,767 0.3
Lakewood 63,800 27,100 2.4 $60,500 26,570 1.0
household income for the Study Area in 2020 was a little more than $72,000,
comparable to Tacoma and Federal Way. With 26,000 jobs within the Study
Area, the closest comparison is the City of Lakewood. However, the jobs to
housing unit ratio is closer to Federal Way than Kent (1.4) and Lakewood
(1.0).
2022
2022 Persons Median 2021 Employment
Jurisdiction Housing
Population per HU Income Employment to HU
Units
Study Area 127,700 45,800 2.8 $72,100 26,012 0.6
Tacoma 220,800 93,700 2.4 $70,000 105,000 1.1
Bellevue 153,900 65,900 2.3 $140,300 144,872 2.2
Kent 137,900 49,700 2.8 $79,800 70,101 1.4
Renton 107,500 43,700 2.5 $84,400 60,723 1.4
Federal Way 101,800 38,000 2.7 $73,000 29,160 0.8
Auburn 88,800 32,600 2.7 $79,400 43,046 1.3
Redmond 75,300 33,200 2.3 $147,000 96,444 2.9
Sammamish 68,200 22,800 3.0 $195,600 7,767 0.3
Lakewood 63,800 27,100 2.4 $60,500 26,570 1.0
INCORPORATION STUDY FOR PARKLAND, PAGE 64
SPANAWAY, MIDLAND, & FREDERICKSON MAY 11, 2023
Exhibit 39. Comparable City Characteristics, 2021
Sources: Washington State Office of Financial Management, 2023; U.S. Census Bureau, 2023;
Puget Sound Regional Council; 2023; Community Attributes Inc., 2023.
INCORPORATION STUDY FOR PARKLAND, PAGE 65
SPANAWAY, MIDLAND, & FREDERICKSON MAY 11, 2023
Exhibit 40 provides a comparison of development characteristics. The Study
Area is similar to Kent in terms of land area, at 20,200 and 21,600 acres
respectively. Kent (6.4), Lakewood (5.8) and the Study Area (6.3) also have
similar population density. The Study Area has more vacant and re-
developable land available to accommodate future growth, consistent with
the cities and Pierce County planning for growth in incorporated areas. Total
assessed value in 2022 for the Study Area is more than $20.7 billion, more
than the City of Lakewood ($9.4 billion), and slightly less than the City of
Kent ($25.4 billion).
Exhibit 41 through Exhibit 43 present demographic characteristics for the
comparable cities. The Study Area and Kent maintain very similar
demographic characteristics. The Study Area and Lakewood are slightly
more diverse in terms of race compared to Kent. The Study Area and
Lakewood also have a higher proportion of the population with a high school
diploma or less compared to the City of Kent.
INCORPORATION STUDY FOR PARKLAND, PAGE 66
SPANAWAY, MIDLAND, & FREDERICKSON MAY 11, 2023
Exhibit 40. Comparable City Development Characteristics, 2021
2022
Gross Land Vacant and Re-
Population Assessed 2022 2022
Jurisdiction Area developable
Density Value AV/Person AV/Acre
(acres) Land (acres)
(billions)
Study Area 20,200 6.3 6,727 20.7 162,200 1,026,900
Tacoma 31,800 6.9 3,890 37.1 168,000 1,166,000
Bellevue 21,400 7.2 N/A 75.0 487,300 3,501,700
Kent 21,600 6.4 2,981 25.4 184,200 1,176,000
Renton 15,000 7.1 1,741 22.4 208,600 1,490,800
Federal Way 14,300 7.1 4,391 14.0 137,100 976,600
Auburn 18,900 4.7 5,194 14.8 166,300 779,500
Redmond 10,600 7.1 1,760 28.4 377,800 2,682,300
Sammamish 13,100 5.2 10,229 23.9 350,500 1,827,400
Lakewood 10,900 5.8 1,160 9.4 147,200 859,900
Sources: Washington State Office of Financial Management, 2023; U.S. Census Bureau, 2023;
King County Buildable Lands Report, 2022; Pierce County Buildable Lands Report, 2022;
Pierce County Assessor, 2023; Community Attributes Inc., 2023.
Note: Data on Vacant and Re-developable land for the City of Bellevue was not reported in the
tables published in the King County Buildable Lands Report.
Exhibit 41. Comparable City Demographic Characteristics, 2021
Sex Age
Jurisdiction
Male Female 0-17 18-34 35-64 65+
Study Area 50% 50% 26% 26% 37% 11%
Tacoma 50% 50% 21% 26% 39% 14%
Bellevue 52% 48% 21% 25% 40% 14%
Kent 51% 49% 25% 25% 39% 11%
Renton 50% 50% 21% 26% 40% 12%
Federal Way 51% 49% 24% 23% 39% 14%
Auburn 51% 49% 26% 23% 40% 11%
Redmond 51% 49% 23% 28% 39% 10%
Sammamish 48% 52% 30% 14% 49% 8%
Lakewood 49% 51% 21% 28% 35% 16%
Sources: Washington State Office of Financial Management, 2023; U.S. Census Bureau, 2023;
Community Attributes Inc., 2023.
INCORPORATION STUDY FOR PARKLAND, PAGE 67
SPANAWAY, MIDLAND, & FREDERICKSON MAY 11, 2023
Exhibit 42. Comparable City Demographic Characteristics, 2021
Race
Native American
Two or
Jurisdiction Hawaiian Indian or
White More Black Other Asian
or Pacific Alaskan
Races
Islander Native
Study Area 55% 15% 10% 8% 7% 4% 2%
Tacoma 62% 12% 11% 4% 9% 1% 2%
Bellevue 50% 6% 3% 2% 38% 0% 0%
Kent 43% 10% 12% 10% 22% 2% 0%
Renton 48% 11% 8% 6% 24% 1% 1%
Federal Way 45% 12% 17% 9% 14% 2% 1%
Auburn 58% 11% 7% 8% 12% 3% 2%
Redmond 53% 6% 2% 2% 38% 0% 1%
Sammamish 58% 6% 2% 1% 33% 0% 0%
Lakewood 55% 14% 14% 5% 8% 4% 1%
Sources: Washington State Office of Financial Management, 2023; U.S. Census Bureau, 2023;
Community Attributes Inc., 2023.
Exhibit 43. Comparable City Demographic Characteristics, 2021
Education
Less Greater
Jurisdiction than High Associate's Bachelor's than
High School Degree Degree Bachelor's
School Degree
Study Area 8% 63% 12% 11% 5%
Tacoma 10% 49% 10% 20% 12%
Bellevue 4% 20% 6% 36% 34%
Kent 13% 49% 11% 20% 8%
Renton 10% 44% 11% 24% 11%
Federal Way 10% 49% 11% 21% 9%
Auburn 11% 52% 11% 19% 8%
Redmond 3% 19% 6% 38% 35%
Sammamish 2% 16% 5% 41% 35%
Lakewood 11% 53% 12% 16% 7%
Sources: Washington State Office of Financial Management, 2023; U.S. Census Bureau, 2023;
Community Attributes Inc., 2023.
INCORPORATION STUDY FOR PARKLAND, PAGE 68
SPANAWAY, MIDLAND, & FREDERICKSON MAY 11, 2023
APPENDIX D: STUDY AREA AND MARKET CHARACTERISTICS
Demand for housing and commercial activity affects the revenues received
from the Study Area, as well as demand for services. Key market
considerations and indicators are included in the body of the report.
Population trends and forecasts can be found in Appendix B: Baseline and
Alternative Scenarios. Market considerations, population trends as well as
retail sales analysis together provide important market assessments and
direct analysis of market impacts on revenues. This appendix provides
additional Study Area and market characteristic analysis that helps inform
costs and revenues for the Study Area.
Population and Density
Exhibit 44 presents a data profile for the Study Area. The estimated 2022
population is 127,690 with a population density of 6.3 people per acre. The
Study Area had an estimated 47,790 housing units in 2022. Employment in
the Study Area was 26,010 in 2021 with 0.6 jobs per housing unit. Total land
area for the Study Area is more than 20,000 acres.
Exhibit 44. Parkland, Spanaway, Midland and Frederickson Incorporation
Study Area Characteristics
2022 Population 127,690
2022 Population Density (persons per acre) 6.3
2022 Housing Units 45,790
2020 Median Household Income $72,162
2021 Employment 26,012
Employment to Housing Unit Ratio 0.57
Gross Land Area (acres) 20,164
Number of Parcels 36,670
Vacant Land (acres) 2,031
Underutilized Land (acres) 4,696
Total Vacant and Re-developable (acres) 6,727
2022 Assessed Land Value (billions) $8.2
2022 Assessed Improvement Value (billions) $12.4
Total 2022 Assessed Value (billions) $20.6
Sources: Washington State Office of Financial Management, 2023; U.S. Census, 2023; Pierce
County, 2023; Puget Sound Regional Council, 2023; Community Attributes Inc., 2023.
For detailed methodology on population, housing units, employment and
demographic data see Appendix B: Baseline and Alternative Scenarios.
Median Household Income was derived from the 2020 U.S. Census Bureau's
American Community Survey 5-Year Estimates. Vacant land and redevelop-
INCORPORATION STUDY FOR PARKLAND, PAGE 69
SPANAWAY, MIDLAND, & FREDERICKSON MAY 11, 2023
able land figures were obtained from data gathered as part of the Pierce
County Buildable Lands Study. Total 2022 assessed value as well as areas
that are vacant or have a low improvement to land value ratio (an alternative
measure to buildable lands) were calculated using Pierce County 2022
Assessor data sets and GIS.
Housing Units
Housing units in the Study Area have grown at a rate of 1.4% annually
between 2010 and 2022, which equates to 590 new housing units annually, on
average. The number of new units between 2013 and 2022 has ranged
between 440 to more than 860 in 2022. Actual housing unit growth over the
period between 2013 and 2022 exceeds projected housing unit growth in the
low and medium scenarios. Under the high growth scenario new units
average nearly 670 per year between 2025 and 2030. This exceeds historic
average annual growth but does not exceed the rate of growth seen in 2017,
2018 and 2022.
Exhibit 45. Study Area Housing Units, 2013-2022
Sources: Washington State Office of Financial Management, 2023; Community Attributes,
2023.
Real Estate Conditions
INCORPORATION STUDY FOR PARKLAND, PAGE 70
SPANAWAY, MIDLAND, & FREDERICKSON MAY 11, 2023
Exhibit 46 shows sales of real properties in the Study Area for 2022. Sales
data for the Study Area are sourced from public data available through the
Pierce County Assessor. In 2022, more than 2,370 units were sold in the
Study Area, totaling over $991 million. Sales in 2022 represented 4.8% of
total assessed value in the Study Area. Most of the sales were for residential
properties, representing 82% of total sales in 2022. Total sales values were
nearly 1.2 times higher than assessed values for residential sales and 1.7
times higher than commercial sales.
INCORPORATION STUDY FOR PARKLAND, PAGE 71
SPANAWAY, MIDLAND, & FREDERICKSON MAY 11, 2023
Exhibit 46. Study Area Real Property Sales, 2022
Residential Sale Amount (2022) $845,831,584
Residential Number of Sales (units, 2022) 1,936
Residential Average Sale Price (2-year average) $421,437
Commercial Sale Amount (2022) $145,244,293
Commercial Number of Sales (units, 2022) 438
Commercial Average Sale Price $284,837
Residential Sale Value as a % of AV 1.2
Commercial Sale Value as a % of AV 1.7
Residential Turnover Rate 5.5%
Frequency of Resales (years) 18
Commercial Sales as a Share of Residential Sales (20-
11%
Year Average)
Sources: Pierce County, 2023; Community Attributes, 2023.
Real estate trends were used to inform modeling of future tax revenues. The
2022 sale value as a percentage of total assessed value (5.5%) is used as a
turnover rate to calculate Real Estate Excise Tax (REET) revenues from
annual residential property sales. This means that 5.5% of residential units
can be expected to be sold each year. Combined with the average sale value
per housing results in the estimated value of residential real estate
transactions per year. A 20-year average ratio of commercial sale value to
residential real estate value is used to estimate commercial real estate sales
per year.
Employment
Employment is a driver of demand for services within the Study Area and
supports revenue generation. Between 2012 and 2021, employment in the
Study Area grew from nearly 22,800 to more than 26,000. Employment
declined between 2020 and 2021, due to the impacts of the COVID-19
pandemic. The largest sectors supporting employment in the Study Area are
services, construction and resources followed by retail.
INCORPORATION STUDY FOR PARKLAND, PAGE 72
SPANAWAY, MIDLAND, & FREDERICKSON MAY 11, 2023
Exhibit 47. Employment by Sector, 2012-2021
Sector 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
Services 8,470 8,530 8,860 9,050 9,020 9,010 9,380 9,850 9,310 9,090
Const/Res 2,510 2,650 2,790 3,010 3,280 3,540 4,100 3,970 4,290 4,300
Retail 2,530 2,580 2,710 2,660 2,890 3,150 2,950 3,010 3,090 3,370
Manufacturing 3,380 3,480 3,630 3,670 3,700 3,550 3,660 3,790 3,730 3,250
Public Education 2,020 2,060 2,060 2,130 2,100 2,150 2,370 2,420 2,610 2,480
WTU 1,830 1,880 1,750 2,060 2,040 1,860 1,690 1,540 1,850 1,660
Government 1,230 1,190 1,230 1,210 1,210 1,220 1,150 1,280 1,160 1,170
FIRE 810 800 770 760 750 710 790 780 770 700
Total 22,780 23,170 23,790 24,540 24,990 25,180 26,090 26,650 26,810 26,010
Source: Puget Sound Regional Council, 2023.
Note: Const/Resources is construction and resources. WTU includes Wholesale, Transportation
and Utilities. FIRE is Finance, Insurance and Real Estate.
Retail Sales
Taxable retail sales are a key driver for one of a city’s major revenues
sources, local sales and use taxes. To arrive at taxable retail sales estimates
within the Study Area through 2030, a custom data request was made to the
Washington State Department of Revenue (DOR). DOR was able to provide
observed taxable retail sales estimates within the Study Area for 2020, from
which, a per capita taxable retail sales figure was obtained. This number was
inflated to reflect 2022 dollars and then used alongside forecasted population
growth to estimate taxable retail sales through 2030. Exhibit 48 presents
estimated taxable retail sales between 2020 and 2030.
Exhibit 48. Taxable Retail Sales Estimates, 2020 - 2030
Source: Washington State Department of Revenue, 2023; Pierce County Countywide Planning
Policies, 2023; Community Attributes Inc., 2023.
INCORPORATION STUDY FOR PARKLAND, PAGE 73
SPANAWAY, MIDLAND, & FREDERICKSON MAY 11, 2023
A P P E N D I X E: H O M E L E S S N E S S , B E H A V I O R A L H E A L T H A N D
PUBLIC SAFETY
Homelessness
Currently, the responsibility to provide services to people experiencing
homelessness within the Study Area lies with Pierce County, and this would
likely remain the case if the Study Area were to become incorporated. Pierce
County Human Services currently collaborates with cities and community
partners in planning for and providing services to address homelessness in
both incorporated and unincorporated areas. Resources for people
experiencing homelessness are provided primarily by the Tacoma Pierce
County Coalition to End Homelessness,45 a collection of local non-profit
agencies, government agencies and community business and individuals. As
of July 2022, Pierce County Human Services estimated that 4,300 people in
Pierce County were experiencing homelessness. The County has 1,300 shelter
beds and 30 safe parking units. It is estimated that 2,970 were living without
shelter (70% in a car, encampment, or elsewhere).46
In 2019 the estimated number of people experiencing homelessness in Pierce
County was slightly higher than the mid-2022 estimate, when 4,700 people
were estimated to be experiencing homelessness. At that time, Pierce
County’s Five-Year Plan to Address Homelessness indicated that half were
families, while the remainder of people experiencing homelessness included
youth unaccompanied by an adult, veterans and domestic violence survivors.
The Plan also indicates that nearly all lost their homes while living in Pierce
County, while a small number may have come from other communities.47
Currently, there are several programs and resources offered to homeless
persons in Pierce County, including safe parking, showers and day centers,
and overnight shelters. Additionally, the Tacoma Pierce County Coalition to
End Homelessness provides a list of resources available to all demographic
cohorts of people experiencing homelessness, including information on local
food banks, and resources for pregnant women, veterans, LGBTQ
individuals, those under the age of 24, families and victims of domestic
violence.48 Pierce County offers a range of housing intervention options,
45 Tacoma Pierce County Coalition to End Homelessness (April 2023):
https://www.pchomeless.org/
46 Pierce County Human Services Website (July 2022):
https://www.piercecountywa.gov/7405/Homelessness-in-Pierce-
County#:~:text=Stay%20updated%20on%20progress%20of%20the%20Comprehensiv
e%20Plan%20to%20End%20Homelessness%20here.&text=As%20of%20July%202022
%2C%20there,people%20without%20shelter%20each%20night.
47 Five-Year Plan to Address Homelessness, Pierce County (December 2019):
https://www.piercecountywa.gov/DocumentCenter/View/104709/Pierce-County-5-
Year-Strategic-Plan-Final
48 https://www.pchomeless.org/
INCORPORATION STUDY FOR PARKLAND, PAGE 74
SPANAWAY, MIDLAND, & FREDERICKSON MAY 11, 2023
including transitional housing, permanent housing and permanent
supportive housing, rapid re-housing, coordinated entry, short-term problem
solving, landlord liaison services and Project Homeless Connect (PHC), which
is “a one-day event that provides access to a variety of services in easily
accessible locations for people experiencing homelessness.”49
There are several bureaucratic options available to fund homelessness
services, including recently passed legislation aimed at diverting funds
towards the progressive eradication of homelessness. Chapter 338, Laws of
2019, allows local taxing jurisdictions to keep a portion of the state’s share of
sales tax generated in those regions, to allocate towards affordable housing
development and other purposes. Chapter 222, Laws of 2020, which went into
effect in March 2020, allows counties and cities to impose a 1/10th of 1% sales
tax for affordable housing purposes. Tacoma has already implemented this;
Pierce County has not. Similar to Chapter 222, Laws of 2020, is the
Behavioral Health Tax, which focuses on allocating revenues from sales tax
to behavioral health services, which is often directly linked as a prevalent
root cause of many persons experiencing homelessness. Other methods aimed
to reduce homelessness with available resources include Pay For Success, or
Social Impact Bonds, where a non-traditional investor, typically a non-
government entity, provides initial capital to fund an evidence-based social
program to improve outcomes for vulnerable populations. The investment
costs are then repaid to the investor if the program is deemed a success by an
independent evaluator, however the investor assumes a loss if the evaluation
does not indicate a successful investment. Another viable option is through
Value Based Reimbursements (VBR), where government entities only pay for
services that adhere to or exceed a contract’s standard of quality. Additional
solutions include private and philanthropic funding, as well as numerous
community partnerships where the county can leverage available resources
of nonprofits and other philanthropic organizations while limiting financial
commitments.50
No data currently exists to identify the number of people experiencing
homelessness within the Study Area. However, as of 2022 the Study Area
represents about 14% of Pierce County’s population. Assuming the homeless
population in the Study Area matches the proportion of total population,
estimated homelessness in the Study Area would be about 590 homeless
persons.
In addition to the number of people experiencing homelessness in the Study
Area, the scale of the costs to serve the Study Area will depend on what type
of investments or interventions are advanced. Appendix C of the 2021
Comprehensive Plan to End Homelessness evaluated net public costs and
savings from the provision of services to address homelessness. The plan
indicates that the 12-month indirect cost per household caused by
49 https://www.piercecountywa.gov/4802/Housing-Interventions
50 “Pierce County Comprehensive Plan to End Homelessness”, Pierce County.
INCORPORATION STUDY FOR PARKLAND, PAGE 75
SPANAWAY, MIDLAND, & FREDERICKSON MAY 11, 2023
homelessness in the county is $21,638, or $1,803 cost per household per
month. The unserved household count for those experiencing homelessness
was 4,104 across Pierce County at the time of this estimate.51 Pierce County
utilized a study created in Santa Clara to estimate the indirect costs
presented above, alongside the direct system costs. The different costs
captured within the estimate of indirect costs include the following:
Adjacent System Costs
o Healthcare
o Law Enforcement & Criminal Justice
o Social Services
o Public Service
Opportunity Costs
o Tourism
o Local Business
o Education
o Poverty Trap
It should be noted, the study found that indirect costs can be offset by greater
investment in direct services for people experiencing homeless.
Currently, the county is contributing $40 million a year towards homeless
services. Through its comprehensive planning efforts, the county has
identified that it will require an additional $117 million in funding per year
going towards operations of services to solve the county’s widespread
homelessness. However, using the estimates indirect costs methodology
created in Santa Clara, it is estimated that successfully addressing the
county’s homelessness could save the community $48 million a year in
spending on adjacent systems such as police, medical care, and other public
systems.52
The Center for Social Innovation presented findings on supporting
partnership for anti-racism in Pierce County. In addition to systemic racism
and related factors, the report indicates that the primary barriers to exiting
homelessness (or risk factors for entering homelessness) include the
following:53
Food Access (SNAP)
51 Comprehensive Plan to End Homelessness, Pierce County, Appendix C (March,
2022):
https://www.piercecountywa.gov/DocumentCenter/View/109977/Comprehensive-
Plan-to-End-Homelessness-with-Appendices-and-Shelter-Action-Plan
52 Comprehensive Plan to End Homelessness, Pierce County (March, 2022):
https://www.piercecountywa.gov/DocumentCenter/View/109977/Comprehensive-
Plan-to-End-Homelessness-with-Appendices-and-Shelter-Action-Plan
53 Supporting Partnership for Anti-Racist Communities (SPARC) – Pierce County,
Center for Social Innovation (January 2018).
https://www.piercecountywa.gov/DocumentCenter/View/67289/SPARC-Tacoma---
Pierce-County-Report-February-2018?bidId=
INCORPORATION STUDY FOR PARKLAND, PAGE 76
SPANAWAY, MIDLAND, & FREDERICKSON MAY 11, 2023
Unemployment/underemployment
Housing quality (age)
Felonies
Credit scores
Evictions
Exhibit 49 and Exhibit 50 show two risk factors for entering homelessness
across the Study Area.
Ultimately, the provision of services to address homelessness is complex and
a full accounting of service needs and costs is likely to require a more
detailed assessment of the interrelationships and coordination between
services provided by the county and any related services provided by a
potential incorporated city for the Study Area.
INCORPORATION STUDY FOR PARKLAND, PAGE 77
SPANAWAY, MIDLAND, & FREDERICKSON MAY 11, 2023
Exhibit 49. Study Area Food Access, 2021
Sources: U.S. Census Bureau ACS 5-Year Estimates, 2021; Community Attributes Inc., 2023.
INCORPORATION STUDY FOR PARKLAND, PAGE 78
SPANAWAY, MIDLAND, & FREDERICKSON MAY 11, 2023
Exhibit 50. Study Area Unemployment, 2021
Sources: U.S. Census Bureau ACS 5-Year Estimates, 2021; Community Attributes Inc., 2023.
INCORPORATION STUDY FOR PARKLAND, PAGE 79
SPANAWAY, MIDLAND, & FREDERICKSON MAY 11, 2023
Behavioral Health
The evaluation of potential needs for health and human services requires an
understanding of underlying factors that contribute to homelessness, as well
as the recent increase in mental health service needs related to the COVID-
19 pandemic. Behavioral health services within the Study Area appear to be
geographically focused along major arterials with many service providers
residing closer to the City of Tacoma in the north part of the Study Area.
Among a list of providers across the county there are six located in the Study
Area54:
Prosperity Wellness Center – In-Patient (Mid-County): Drug and
Alcohol Assessment and Treatment; Gambling Addiction Treatment;
Stabilization Services; Individual Treatment; Group Therapy;
Medication Management; Withdrawal Management.
Greater Lakes Mental Health Care (Mid-County): Initial
Assessments; Individual Therapy; Family Therapy; Case
Management; Group Therapy; Peer Support; Medication Evaluations
and Management; Advocacy Services.
Prosperity Wellness Center – Outpatient and Admissions
(Parkland-Spanaway-Midland): Drug and Alcohol Assessment and
Treatment; Gambling Addiction Treatment; Stabilization Services;
Individual Treatment; Group Therapy; Medication Management;
Withdrawal Management; Intensive Outpatient Treatment.
Greater Lakes Recovery Center E&T (Parkland-Spanaway-
Midland): Mental Health Evaluation and Treatment.
Greater Lakes Mental Health Care (Parkland-Spanaway-
Midland): Initial Assessments; Individual Therapy; Family Therapy;
Case Management; Group Therapy; Peer Support; Medication
Evaluations and Management; Advocacy Services.
MultiCare Spanaway Clinic (Parkland-Spanaway-Midland):
Individual counseling; Referral to services.
There are also Mobile Community Intervention Response Teams (MCIRT)
managed by Pierce County and Mobile Outreach Crisis Teams (MOCT)
managed by Multicare and partly funded by the county. A Crisis Recovery
Center was built in East Pierce County. Funding for these programs was
awarded to providers through the advocacy organizations Elevate Health and
OnePierce, the funding arm of Elevate Health.55
If the Study Area were to become incorporated, it is likely that the county
would continue to provide services in the Study Area as they currently serve
both incorporated and unincorporated areas. However, an incorporated Study
Area would need to identify key gaps that may be present in the south part of
54 Pierce County Human Services Behavioral Health Website (2022).
https://www.piercecountywa.gov/5859/Behavioral-Health
55 Pierce County Human Services Behavioral Health Website (2022).
https://www.piercecountywa.gov/6737/Behavioral-Health-Partnerships
INCORPORATION STUDY FOR PARKLAND, PAGE 80
SPANAWAY, MIDLAND, & FREDERICKSON MAY 11, 2023
the Study Area, as well as any specific unmet needs associated with potential
provision of related city services.
Public Safety and Crime
Maintaining effective public safety is essential in any discussion related to
incorporation. City police represent 62% of law enforcement in Washington,
and cities face significant public safety and law enforcement challenges
related to the following needs: 56
Growing populations to serve (Washington ranks last in the nation for
the number of law enforcement officers per 1,000 residents).
Increasing behavioral health-related disturbances (heightened need
for broader public safety investment in behavioral health response
options and community treatment).
Recruitment and retention issues (62% of cities have indicated
challenges hiring police officers and 47% of officers will be eligible for
retirement within five years).
Increase in wage and benefit costs.
Currently public safety services in the Study Area are provided by the Pierce
County Sheriff’s Department. Across unincorporated Pierce County, the
sheriff’s department averages around one officer for every 1,200 people living
in unincorporated Pierce County. However, the actual level of service for any
individual area may differ depending on stationing and population density.
For comparison, the City of Lakewood’s average level of service is 650
residents per police officer and the City of Kent’s average is roughly 900
residents per police officer. The nearby City of Puyallup has roughly one
officer for every 760 residents, while the City of Tacoma has roughly one
officer for every 690 residents.57
The Study Area has few census block groups with crime events per capita
that exceed 0.5 per resident. 58 Crime events per capita are highest in the
Parkland and Midland areas in the northwest portion of the Study Area.
There is also a slightly higher instance of crime per capita proximate to the
industrial areas of Frederickson and the commercial areas along SR 7
extending south to Spanaway. Finally, crime events per capita are also
slightly elevated in the Summit area in the northeast portion of the Study
Area. The crime events appear to be significantly lower than the City of
Tacoma and comparable to the City of Puyallup.
56 Association of Washington Cities, 2022. https://wacities.org/data-resources/state-
of-the-cities/public-safety
57 City of Puyallup and City of Tacoma, 2023.
58 Crime events include all types of crime from destruction of property and
vandalism to motor vehicle theft to drug/narcotic violations to murder.
INCORPORATION STUDY FOR PARKLAND, PAGE 81
SPANAWAY, MIDLAND, & FREDERICKSON MAY 11, 2023
Exhibit 51. Crime Events Per Capita by Block Group, October 2021 – October 2022
Sources: Pierce County, 2023; City of Tacoma, 2023; Community Attributes Inc., 2023.
INCORPORATION STUDY FOR PARKLAND, PAGE 82
SPANAWAY, MIDLAND, & FREDERICKSON MAY 11, 2023
Mapping by Crimegrade.org, which presents crime levels on a scale ranging
from A+ (being the lowest level of crime) to F (being the highest level of
crime), indicates that crime levels are primarily F in nearby Lakewood and
ranging from A to C in Puyallup. 59 The Study Area appears to have areas
with an F crime grade mostly in the Western portion and closer to a C or D in
much of the overall geography. There are pockets with a B crime grade in the
Study Area, mostly in the Southwest portion of Study Area. Incorporation of
the Study Area would require careful consideration of public safety and law
enforcement responsibilities at the state and local level. A potential city
would represent a large community to serve and would require broad
consideration of factors that would impact resource needs during the
incorporation process. However, incorporation may also release additional
resources for public safety services compared to those resources currently
available to unincorporated areas in Pierce County.
59 https://crimegrade.org/safest-places-in-washington/
INCORPORATION STUDY FOR PARKLAND, PAGE 83
SPANAWAY, MIDLAND, & FREDERICKSON MAY 11, 2023
APPENDIX F: PARKLAND, SPANAWAY, MIDLAND AND
FREDERICKSON STUDY AREA LAND USE AND CURRENT ZONING
Land Area and Land Uses
Predominant uses in the Study Area include the following:
A majority of the Study Area includes residential uses with a large
portion dedicated to single-family dwellings.
Small to mid-size commercial uses are concentrated along state routes
and major arterials. These uses include grocery chains, as well as a
diversity of large and small retail establishments.
Larger scale commercial and industrial uses are concentrated in
the southeast portion of the Study Area. These include major
industrial, and warehousing uses in Frederickson, including Boeing.
The Study Area includes a range of institutional uses, including
Pacific Lutheran University
Open space includes a golf course, Naches Trail Preserve, and areas
around Clover Creek.
Vacant land represents about 10% of Study Area gross land area, or more
than 2,000 acres. Total development and redevelopment capacity represents
approximately 33% of total gross land area in the Study Area.
Exhibit 52 shows a map of existing land uses within the Study Area and
Exhibit 53 shows a map of current zoning districts.
INCORPORATION STUDY FOR PARKLAND, PAGE 84
SPANAWAY, MIDLAND, & FREDERICKSON MAY 11, 2023
Exhibit 52: Study Area Land Use, 2022
Sources: Pierce County Comprehensive Plan, 2022, Community Attributes Inc., 2023.
INCORPORATION STUDY FOR PARKLAND, PAGE 85
SPANAWAY, MIDLAND, & FREDERICKSON MAY 11, 2023
Exhibit 53: Study Area Zoning, 2022
Sources: Pierce County Comprehensive Plan, 2022, Community Attributes Inc., 2023.
INCORPORATION STUDY FOR PARKLAND, PAGE 86
SPANAWAY, MIDLAND, & FREDERICKSON MAY 11, 2023
Plans and Zoning
Pierce County Countywide Planning Policies and the Pierce County
Comprehensive Plan provide land use planning and policy guidance for
unincorporated areas in Pierce County, including the communities in the
Study Area. The Study Area, which is comprised of Parkland, Spanaway,
Midland and Frederickson, covers portions of three unincorporated
Community Plan areas in Pierce County. The Parkland-Spanaway-Midland
Community Plan Area and the Frederickson Community Plan Area are both
entirely contained within the Study Area. A large portion of the Mid-County
Community Plan Area falls outside of the existing Urban Growth Area (UGA)
and has been excluded from the Study Area, while the areas of Mid-County
that fall within the UGA have been included in the Study Area.
Chapter 18A of Pierce County's zoning code provides zoning regulations for
the unincorporated areas in the County. Additionally, different uses and
densities are outlined in the zoning code for each Community Plan area.
Much of the Study Area is currently zoned as Moderate Density Single-
Family (MSF) or Single-Family (SF). Densities for these zones range between
four and six dwelling units per acre. Other zoning districts include:60
Community Employment (CE), Employment Corridor (ECOR)
and Employment Center (EC): This includes commercial and
industrial uses, including intensive commercial and industrial uses in
Frederickson and areas east of Parkland & I-5
Town Center (TCTR): Districts dedicated to smaller and more
concentrated commercial use along SR-7. Allowed residential densities
in the Town Center zone range between 15 and 80 dwelling units per
acre.
Urban Corridor (UCOR): Areas with small to mid-size
commercial uses linking the town centers. Residential densities in
Urban Corridor zones range between 12 and 60 dwelling units per
acre.
Neighborhood Corridor (NCOR): Areas adjacent to urban corridors
that buffer residential from more intensive commercial and industrial.
Residential densities in these zones range between six and 25 dwelling
units per acre.
Mixed Use District (MUD): Small districts at the north and south
border that intersect with primary arterials. Mixed use zones in the
Mid-County Community Plan Area as well as the Parkland-Spanaway-
Midland Community Plan Area are between 12 and 25 dwelling units
per acre. For the remainder of the Study Area, residential densities
range between six and 25 dwelling units per acre.
60 Pierce County Municipal Code, Chapter 18A.10.
INCORPORATION STUDY FOR PARKLAND, PAGE 87
SPANAWAY, MIDLAND, & FREDERICKSON MAY 11, 2023
Parks and Recreation (PR): Denotes areas recognized as public and
private parks, campgrounds, historical sites, and other properties
improved with park or recreational facilities.
If the Study Area were to incorporate, it would adopt a comprehensive plan
and development regulations pursuant to the Growth Management Act
(36.70A RCW). Local comprehensive plans would address elements such as:
land use, housing, capital facilities, utilities, transportation, economic
development and parks. The new city would implement planning policies
through a local zoning code.
As required by the Growth Management Act (GMA), Pierce Countywide
Planning Policies establish UGAs in consultation with cities, with each city
identifying land needed to accommodate 20-year growth. While the Growth
Management Act does not explicitly equate UGAs with municipal annexation
areas, the UGAs around cities may be considered potential annexation areas
for cities. Pierce County Countywide Policy UGA-4 states "Potential
Annexation Areas shall be designated through the Pierce County
Comprehensive Plan in consultation with cities and towns." A portion of the
Study Area lies within the City of Tacoma's Potential Annexation Area
(PAA).61
Detailed Zoning
Pierce County establishes permitted uses through the Pierce County code.
Use types and categories for each zone are documented in Title 18A
Development Regulations – Zoning.62 Permitted uses within each zone differ
by community plan area throughout unincorporated Pierce County. Some
uses are permitted outright, while others may require a conditional use or
administrative use permit. Codes assigned to describe permitted and
conditionally permitted uses are as follows:
P = Permitted
C = Requires Conditional Use Permit
A = Requires Administrative Use Permit
Allowable land uses throughout Pierce County are divided into eight major
categories, including Residential, Civic, Utilities, Essential Public Facilities,
Office/Business, Resource, Commercial and Industrial. Each of these
categories includes a number of use types and varying levels of allowable use
designations, which are indicated by a number associated with the
corresponding condition of allowed use, i.e. P-1, which indicates that level 1
of that specific development type is permitted unconditionally in that region.
For context, of the five allowable levels of Multi-Family Housing, Level 1
specifically distinguishes “three to four multi-family buildings, with ground
61 https://www.piercecountywa.gov/5748/Annexation
62 Pierce County Zoning Code. Title 18A Development Regulations – Zoning. (2022).
https://pierce.county.codes/PCC/18A
INCORPORATION STUDY FOR PARKLAND, PAGE 88
SPANAWAY, MIDLAND, & FREDERICKSON MAY 11, 2023
level access to each unit”, while Level 5 specifies multifamily as a component
of a mixed-use development, where residential dwelling units reside above
first-floor nonresidential space.
Exhibit 55 through Exhibit 65 document allowed uses by each zone in the
Study Area, including limitations to the permitted use as well as the land
acres of each zone within the Study Area. Zones that include detailed uses for
unincorporated Pierce County are those zones for which separate zoning is
not found for one or more of the relevant Community Plan areas. Zones and
Community Plan areas for which there are zero acres are excluded from
tables as well.
Feedback from community outreach indicated concerns about limited
availability of land zoned to allow childcare uses. Day care center uses in
Pierce County, which refer to “commercial use of a building or any portion
thereof for the care of individuals needing supervision and care on a less than
24-hour basis”, which also includes pre-school facilities, is separated into two
development levels: Level 1, which includes day-care centers licensed for
fewer than 25 children, and Level 2, which encompasses all day-care centers
with more than 25 children. Analysis of the Pierce County Zoning
Regulations indicates a total of 21,056 acres of land within the county allow
for day care uses. Of those acres, 29% permit day care use without any
restrictions or notes on the use. Out of the total acres zoned to allow day
care, 42% require a conditional use permit. Most of the acres allowing day
care uses are concentrated among moderate density single family zones and
single-family zones (which represent 58% of total county acres), of which all
are permitted with notes (P1) or require a conditional use permit (C1).
Overall, 61% of the countywide acres allowing for day care uses fall within
the Parkland-Spanaway-Midland Community Plan Area, however more than
two-thirds of the areas allowing for day care uses in the Parkland-Spanaway-
Midland Community Plan Area are permitted with a conditional use permit.
Current vacant land within zones accommodating day care uses total more
than 800 acres, based on analysis of parcel-level data from the Pierce County
Buildable Lands analysis (Exhibit 54).
INCORPORATION STUDY FOR PARKLAND, PAGE 89
SPANAWAY, MIDLAND, & FREDERICKSON MAY 11, 2023
Exhibit 54. Vacant Acres by Zone, 2022
Acres of % of
Zone
Vacant Land Total
Moderate Density Single Family 401 48.8%
Single Family 295 35.8%
Mixed Use District 41 5.0%
Community Employment 49 6.0%
Moderate-High Density
Residential 28 3.4%
Neighborhood Center 6 0.7%
High Density Single Family 3 0.3%
Total 823 100.0%
Source: Pierce County Assessor, 2023; Community Attributes Inc., 2023.
The following tables present allowed uses by zone in the Study Area. P-S-M
is used to indicate uses within the Parkland-Spanaway-Midland Community
Plan area, Frederickson refers to the Frederickson Community Plan area,
Mid-County refers to the Mid-County Community Plan area and Uninc PC
refers to unincorporated Pierce County.
Exhibit 55. Single-Family Zone Use Table, 2023
Use Type P-S-M Frederickson Mid-County
Residential
Group Home C C C
Residential Care Facilities A1;C2 A1;C2 -
Senior Housing A A -
Shared Housing P1 P1 P1
Single-Family Detached Housing P P P
Civic
Community and Cultural Services P2,7;C1 P7 P7
Day-Care Centers C1 - P1
Education P1;A2;C3 P1;A2;C3 A1
Public Park Facilities P1,4;C2,3 P1,4;C2,3 P1,2,4;C3
Public Safety Services C1 C1 C1
Religious Assembly P1;C2,3 P1;C2,3 P1;C2,3
Utilities
Electrical, Pipelines, Sewage & Surface Water P P P
Electrical Generation Facilities A2 A2 A2
Natural Gas Facilities P1;C3 P1;C3 P1;C3
Sewage Treatment Facilities C - -
Telecomm., Wireless, Utility & Public Maintenance Fac. P1;C2 P1;C2 P1
Waste Disposal Facilities C2 - -
Waste Transfer Facilities P1;C2 - -
Water Supply Facilities P1;A2;C3 P1;A2;C3 P1;A2;C3
INCORPORATION STUDY FOR PARKLAND, PAGE 90
SPANAWAY, MIDLAND, & FREDERICKSON MAY 11, 2023
Resources
Agritourism, Crop Production, Fish Processing, Forestry, Surface Mines C, P1 P1 P, P1
Commercial
Amusement & Recreation C6 C6 C6
Acres of Single-Family District 3,141 279 1,139
Share of Study Area Acres 13% 1% 5%
Source: Pierce County, 2023.
Exhibit 56. Moderate Density Single-Family Zone Use Table, 2023
Use Type P-S-M Frederickson Pierce County - Uninc.
Residential
Group Home C C C
Mobile Home Park C C C
Multi-Family Housing C1,3 C1,3 C1,3
Residential Care Facilities A1;C2 A1;C2 A1;C2
Senior Housing A A A
Shared Housing P1;C3 P1;C3 P1;C3
Single-Family Detached Housing, Duplex P P P
Civic
Community and Cultural Services P2,7;C1 P7 P1,2,7
Day-Care Centers C1 P1 C
Education P1;A2;C3 P1;A2;C3 A
Public Park Facilities P1,4;C2,3 P1,4;C2,3 P1,4;A2;C3
Public Safety Services C1 C1 C1
Religious Assembly P1;C2,3 P1;C2,3 P1;C2,3
Utilities
Electrical Facilities, Pipelines, Sewage, Surface Water
P P P
Mgmt.
Electrical Generation Facilities A2 A2 A2
Natural Gas Facilities P1;C3 P1;C3 P1;C3
Sewage Treatment Facilities C - C
Telecommunication Towers or Wireless Facilities P1;C2 P1;C2 P1;C2
Utility or Public Maintenance Facilities P1;C2 P1;C2 P1;C2
Waste Disposal Facilities C2 - C2
Waste Transfer Facilities P1;C2 C1 P1;C2
Water Supply Facilities P1;A2;C3 P1;A2;C3 P1;A2;C3
Resources
Agritourism, Crop Production, Fish Processing,
C, P1 P1 C, P1
Forestry, Surface Mines
Commercial
Amusement & Recreation C6 C6 C6
Acres of Moderate Density Single Family District 3,744 3,961 0
Share of Study Area Acres 16% 16% 0%
Source: Pierce County, 2023.
INCORPORATION STUDY FOR PARKLAND, PAGE 91
SPANAWAY, MIDLAND, & FREDERICKSON MAY 11, 2023
Exhibit 57. Moderate-High Density Residential Zone Use Table, 2023
Mid-
Use Type P-S-M
County
Residential
Group Home, Mobile Home Park C C
Mobile Home - C
Multi-Family Hsg., Senior Hsg., Shared Hsg., Single-Family, Duplex P P
Residential Care Facilities P1,2 P1,2
Civic
Administrative Government Services P -
Community and Cultural Services P2,7,8;C1,3 P2,7,8;C1,3
Day-Care Centers P P
Education P1;A2 P1;A2
Health Services P1 -
Public Park Facilities P1,2,4 P1,2,4
Public Safety Services C1 C1
Religious Assembly P1;C2,3 P1;C2
Utilities
Electrical Facilities, Pipelines, Sewage, Surface Water Mgmt. P P
Electrical Generation Facilities C3 C3
Natural Gas Facilities P1;C3 P1;C3
Sewage Treatment Facilities C C
Telecommunication Towers or Wireless Facilities P1;C2 P1;C2
Utility or Public Maintenance Facilities P1;C2 P1;C2
Waste Disposal Facilities - P1;C2
Waste Transfer Facilities P1;C2 -
Water Supply Facilities P1;A2;C3 P1;A2;C3
Office/Business
Administrative and Professional Offices P P
Resources
Agritourism, Crop Production, Fish Processing, Forestry, Surface
P, P1 P, P1
Mines
Commercial
Amusement & Recreation C6 -
Acres of Moderate-High-Density Residential District 245 43
Share of Study Area Acres 1% 0%
Source: Pierce County, 2023.
Exhibit 58. Mixed-Use District Zone Use Table, 2023
Use Type P-S-M Mid-County Uninc PC
Residential
Group Home C C C
Multi-Family Housing, Senior Housing P P P
INCORPORATION STUDY FOR PARKLAND, PAGE 92
SPANAWAY, MIDLAND, & FREDERICKSON MAY 11, 2023
Residential Care Facilities P1,2;C3,4 P1,2;C3,4 P1,2;C3,4
Shared Housing P P A1;P2,3
Single-Family Detached Housing, Duplex P P A
Civic
Admin. Govt. Services, Day-Care Centers, Public
P P P
Park Facilities
Community and Cultural Services P1-4,7,8 P1-4,7,8 P1-4,7,8;C5
Education P1,4,5;A2;C3 P1,4,5;A2;C3 P4-5;A1,2;C3
Health Services P1;C2 P1;C2 P1;C2
Postal Services P1;C2 P1;C2 P
Public Safety Services P1;C2,3 P1;C2,3 P1,2;C3
Religious Assembly P1,2 P P
Transportation P1;C2,3 P1;C2,3 P1;C2,3
Utilities
Electrical Facilities, Pipelines, Sewage, Surface
P P P
Water Mgmt.
Electrical Generation Facilities A3 A3 -
Natural Gas Facilities P1,2;C3 P1,2;C3 P1,2;C3
Sewage Treatment Facilities C C C
Telecommunication Towers or Wireless Facilities P1;PL2;C3 P1;PL2;C3 P1;PL2;C3
Utility or Public Maintenance Facilities, Waste
P1;C2 P1;C2 P1;C2
Transfer Facilities
Water Supply Facilities P1;A2;C3 P1;A2;C3 P1;A2;C3
Office/Business
Administrative and Professional Offices P P P
Resources
Agritourism, Agricultural Svcs., Agricultural Supply
P P P
Sales
Crop Production - P1 -
Forestry - - P1
Commercial
Amusement and Recreation P1-4;C5 P1-4;C5 P
Billboards A A P
Building Materials and Garden Supplies P1-5;C6 P1-5;C6 P
Business Services, Eating & Drinking Estabs., Storage
P P P
& Moving
Commercial Centers P1;C2 P1;C2 C
Lodging P1,2 P1,2 C1;P2
Mobile, Manuf., and Mod. Home Sales; Motor
Vehicles & Related Equip.; Rental & Repair P P P
Services.
Sales of Merchandise and Services P P P4;C5
Wholesale Trade P - P
Industrial
Contractor Yards P1 P1;C2 P
Food and Related Products C2 C2 C2
INCORPORATION STUDY FOR PARKLAND, PAGE 93
SPANAWAY, MIDLAND, & FREDERICKSON MAY 11, 2023
Industrial Services and Repair C C -
Intermediate Manufacturing and
C1-3 C1-4 C
Intermediate/Final Assembly
Recycling Collection and Processing Facilities - P1,2 -
Salvage Yards/Vehicle Storage C3,4 - P1;C2-4
Warehousing, Distribution, and Freight Movement C1,2 C1,2 C1-3
Acres of Mixed-Use District 223 51 0
Share of Study Area Acres 1% 0% 0%
Source: Pierce County, 2023.
Exhibit 59. Residential Resource Zone Use Table, 2023
Use Type P-S-M Frederickson Mid-County
Residential
Group Home C C C
Residential Care Facilities - A1 -
Senior Housing - A -
Shared Housing P1 P1 P1
Single-Family Detached Housing P P P
Two-Family Housing (Duplex) - P -
Civic
Community and Cultural Services P2,7;C1 P7 P7
Day-Care Centers C1 P1 P1
Education P1;A2 - A1
Public Park Facilities P1,4;C2,3 P1,4;C2,3 P1,2,4;C3
Public Safety Services C1 C1 C1
Religious Assembly P1;C2,3 P1;C2,3 P1;C2,3
Utilities
Electrical Facilities, Pipelines, Sewage,
P P P
Surface Water Mgmt.
Electrical Generation Facilities A2 A2 A2
Natural Gas Facilities P1;C3 P1;C3 P1;C3
Sewage Treatment Facilities C - -
Telecommunication Towers or Wireless
P1 P1;C2 P1
Facilities
Utility or Public Maintenance Facilities P1;C2 P1;C2 P1
Waste Disposal Facilities C2 - -
Waste Transfer Facilities P1;C2 - -
Water Supply Facilities P1;A2;C3 P1;A2;C3 P1;A2;C3
Resources
Agritourism, Crop Production, Fish
C, P1 P1 P, P1
Processing, Forestry, Surface Mines
Commercial
Amusement & Recreation C6 C6 C6
Acres of Residential Resource District 1,988 476 481
INCORPORATION STUDY FOR PARKLAND, PAGE 94
SPANAWAY, MIDLAND, & FREDERICKSON MAY 11, 2023
Share of Study Area Acres 8% 2% 2%
Source: Pierce County, 2023.
Exhibit 60. Neighborhood Center Zone Use Table, 2023
Pierce County -
Use Type P-S-M Mid-County
Uninc.
Residential
Group Home C C C
Multi-Family Housing P P1,3,5 P
Residential Care Facilities A1,2 P1,2 P1,2
Senior Housing P P P
Shared Housing P P A1;P2,3
Single-Family Detached
- P A
Housing
Two-Family Housing (Duplex) - P A
Civic
Administrative Government
P P1,4 P
Services
Community and Cultural P1-
P1,2,7 P1,2,7
Services 4,7,8;C1
Day-Care Centers P P P
Education P1;A2 P A1,2;C3
Health Services, Postal
Services, Public Safety P1 P1 P1
Services
Public Park Facilities P1,4 P1,4 P1,4
Religious Assembly P1,2 P P
Transportation P1 P1 P1;C2,3
Utilities
Electrical Facilities, Pipelines,
P P P
Sewage Collection Facilities
Electrical Generation Facilities C3 C3 C3
Natural Gas Facilities P1,2;C3 P1,2;C3 P1,2;C3
Sewage Treatment Facilities C C C
Stormwater Facilities* - - P
Telecommunication Towers or
P1;C2 P1;C2,3 P1;PL2
Wireless Facilities
Utility or Public Maintenance
Facilities, Waste Transfer P1;C2 P1;C2 P1;C2
Facilities
Water Supply Facilities P1;A2;C3 P1;A2;C3 P1;A2;C3
Office/Business
Administrative and
P P P
Professional Offices
Resources
Agritourism P1 P, P1 P, P1
Commercial
INCORPORATION STUDY FOR PARKLAND, PAGE 95
SPANAWAY, MIDLAND, & FREDERICKSON MAY 11, 2023
Amusement and Recreation P1;C2 P1;C2,3 P1-3
Billboards - - -
Building Materials and Garden
P1 P1,2;C3 P1,2
Supplies
Business Services P1 P1 P
Eating and Drinking
P1,3 P1,3;C2 P
Establishments
Lodging P3 - -
Motor Vehicles and Related
Equipment Sales, Rental, P2 P1,2 P1-3
Repair, and Service
Rental and Repair Services P1 P1 P1
Sales of Merchandise and
P1,2 P2;C3 P3
Services
Industrial
Contractor Yards C - -
Recycling Collection and
- - P1,2
Processing Facilities
Acres of Neighborhood
42 20 0
Center District
Share of Study Area Acres 0% 0% 0%
Source: Pierce County, 2023.
Note: Allowed only as a component of a mixed-use development and shall not be permitted
as a stand-alone use.
Exhibit 61. Community Employment Zone Use Table, 2023
Use Type P-S-M
Civic
Administrative
P
Government Services
Community and Cultural
P7
Services
Day-Care Centers P
Education P4,5
Health Services P1
Postal Services P1;C2
Public Park Facilities P1,4
Public Safety Services P1,2
Transportation P1,2;C3
Utilities
Electrical Facilities P
Natural Gas Facilities P1-3;C4
Pipelines P
Sewage Collection
P
Facilities
Sewage Treatment
C
Facilities
Surface Water
P
Management Activities
INCORPORATION STUDY FOR PARKLAND, PAGE 96
SPANAWAY, MIDLAND, & FREDERICKSON MAY 11, 2023
Telecommunication
Towers or Wireless P1;PL2,3;C4
Facilities
Utility or Public
P
Maintenance Facilities
Waste Transfer Facilities P1;C2
Water Supply Facilities P1;A2;C3
Office/Business
Administrative and
P
Professional Offices
Resources
Agritourism P
Agricultural Services P
Agricultural Supply Sales P1-4
Animal Production,
Boarding, and P1
Slaughtering
Crop Production C2
Fish Processing,
Hatcheries, and C
Aquaculture
Forestry C2
Commercial
Billboards A
Building Materials and
P4,5;C6
Garden Supplies
Business Services P
Eating and Drinking
P
Establishments
Lodging C4
Mobile, Manufactured,
P
and Modular Home Sales
Motor Vehicles and
Related Equipment Sales,
P1,4
Rental, Repair, and
Service
Rental and Repair
P
Services
Sales of Merchandise
P1
and Services
Wholesale Trade P
Industrial
Contractor Yards P
Food and Related
P1-3;C4
Products
Industrial Services and
P
Repair
Intermediate
Manufacturing and
P1-4;C5
Intermediate/Final
Assembly
INCORPORATION STUDY FOR PARKLAND, PAGE 97
SPANAWAY, MIDLAND, & FREDERICKSON MAY 11, 2023
Recycling Collection and
P1,2
Processing Facilities
Salvage Yards/Vehicle
P1;C2-4
Storage
Warehousing, Distribution,
P1,2;C3,4
and Freight Movement
Acres of High-Density SF
400
District
Share of Study Area
1.7%
Acres
Source: Pierce County, 2023.
Exhibit 62. High-Density Single Family Zone Use Table, 2023
Use Type P-S-M
Residential
Multi-Family Housing P1,3
Residential Care Facilities P1,2
Senior Housing P
Shared Housing P1
Single-Family Detached Housing P
Two-Family Housing (Duplex) P
Civic
Community and Cultural Services P7
Day-Care Centers P1
Education P1
Public Park Facilities P1,4
Religious Assembly P1
Utilities
Electrical Facilities P
Natural Gas Facilities P1;C3
Pipelines P
Sewage Collection Facilities P
Sewage Treatment Facilities C
Surface Water Management Activities P
Telecommunication Towers or Wireless Facilities P1;C2
Utility or Public Maintenance Facilities P1;C2
Waste Disposal Facilities C2
Waste Transfer Facilities P1;C2
Water Supply Facilities P1;A2;C3
Acres of High-Density SF District 16
Share of Study Area Acres 0.1%
Source: Pierce County, 2023.
INCORPORATION STUDY FOR PARKLAND, PAGE 98
SPANAWAY, MIDLAND, & FREDERICKSON MAY 11, 2023
Exhibit 63. Employment/Neighborhood/Towne Center/Urban Zones Use
Table, 2023
Employment Neighborhood Towne Urban
Use Type
Corridor Corridor Center Corridor
Residential
Group Home - C - C
Multi-Family Housing, Residential
- P P P
Care Facilities, Senior Housing
Shared Housing - P - P2,3
Single-Family Detached Housing,
- P - -
Duplex
Civic
Administrative Government
P P P P
Services, Day-Care Centers
Community and Cultural Services P7 P2,7,8;C1,3 P1-5,7,8 P1-5,7,8
Education P4,5 P1,2 P1-3;A4,5 P
Health Services P1,2 P1 P1,2 P1,2
Postal Services P2 P1 P1 P
Public Park Facilities P4 P1,2,4 P1,2,4 P
Public Safety Services P1;C2,3 P1 P1 P1,2
Religious Assembly P1,2;C3 P1,2 P
Transportation P1,2;C3 P1 P1,2 P1-3
Utilities
Electrical Facilities, Pipelines,
P P P P
Sewage, Surface Water Mgmt.
Electrical Generation Facilities,
C - - -
Organic Waste Processing
Natural Gas Facilities P P1,2;C3 P1,2,5;C3 P1;C3
Sewage Treatment Facilities C C C C
Telecommunication Towers or
P1;PL2,3;C4 P1;C2 P1;C2 P1;PL2;C3
Wireless Facilities
Utility or Public Maintenance
P P1;C2 P1;C2 P1;C2
Facilities
Waste Transfer Facilities P1,2,4 P1;C2 P1;C2 P1,2
Water Supply Facilities P1;A2;C3 P1;A2;C3 P1;A2;C3 P1;A2;C3
Office/Business
Administrative and Professional
P P P P
Offices
Resources
Agritourism P1 - - -
Agricultural Services, Crop
P - - -
Production
Agricultural Supply Sales P - - P
Animal Production, Boarding, and
P1 - - P1
Slaughtering
Fish Processing, Hatcheries, and
C - - -
Aquaculture
Forestry P2 - - -
Commercial
INCORPORATION STUDY FOR PARKLAND, PAGE 99
SPANAWAY, MIDLAND, & FREDERICKSON MAY 11, 2023
Amusement and Recreation C3 P1;C6 P1-4 P1-5
Building Materials and Garden
P5-6 P1,2 P1-4 P
Supplies
Business Services P P1 P1 P
Commercial Centers - - P P
Eating and Drinking
P P1,3 P P
Establishments
Lodging - - P2 P2,5
Mobile, Manufactured, and
P - - P
Modular Home Sales
Motor Vehicles and Related
Equipment Sales, Rental, Repair, P1,2,4-5 C2 P1 P1-4
and Service
Rental and Repair Services,
P - P1 P
Wholesale Trade
Sales of Merchandise and
P1 P1-3 P P
Services
Storage and Moving C - - P
Industrial
Contractor Yards, Industrial
P - - -
Services & Repair
Food and Related Products P - P1 P1
Intermediate Manufacturing and
P - - C1-3
Intermediate/Final Assembly
Off-site Hazardous Waste
C - - -
Treatment and Storage Facilities
Recycling Collection and
Processing Facilities, Salvage C - - -
Yards/Vehicle Storage
Warehousing, Distribution and
P1-3 - - -
Freight Movement
Acres of Centers & Corridors
1,519 1,873 408 1,285
Matrix
Share of Study Area Acres 6% 8% 2% 5%
Source: Pierce County, 2023.
Exhibit 64. Employment Center Zone Use Table, 2023
Pierce
Use Type Frederickson County -
Uninc.
Residential
Single-Family Detached Housing -1 -
Civic
Administrative Government Services P -
Community and Cultural Services P7 P7
Day-Care Centers - P
Health Services P1 P1;C2
Postal Services P2 P
INCORPORATION STUDY FOR PARKLAND, PAGE 100
SPANAWAY, MIDLAND, & FREDERICKSON MAY 11, 2023
Public Park Facilities P P1,4
Public Safety Services P1;C2,3 P1,2;C3
Transportation P1;C2,3 P1;C2,3
Utilities
Electrical Facilities, Natural Gas Facilities, Pipelines, Sewage
P P
Collection
Electrical Generation Facilities, Sewage Treatment Facilities C C
Organic Waste Processing Facilities C P1,2;C3
Stormwater Facilities* - P
Telecommunication Towers or Wireless Facilities P1;PL2,3;C4 P1;PL2,3;
Utility or Public Maintenance Facilities, Water Supply
P P
Facilities
Waste Disposal Facilities P1-4 P1-4;C5
Waste Transfer Facilities P1;C2 P1;C2-4
Office/Business
Administrative and Professional Offices P P
Resources
Agritourism P1 P
Agricultural Services, Crop Production, Forestry P P
Animal Production, Boarding, and Slaughtering C3 C3
Fish Processing, Hatcheries, and Aquaculture, Surface Mines C C
Commercial
Business Services, Wholesale Trade, Mobile, Manuf. &
P P
Modular Home Sales
Eating and Drinking Establishments, Rental & Repair
- P
Services, Billboards
Motor Vehicles and Related Equipment Sales, Rental,
- P1,5
Repair, and Service
Sales of Merchandise and Services - P1
Industrial
Basic Manufacturing, Contractor Yards, Food & Related
P P
Products
Industrial Services and Repair, Recycling Collection &
P P
Processing
Intermediate Manufacturing and Intermediate/Final
P P
Assembly
Off-site Hazardous Waste Treatment and Storage Facilities C C
Salvage Yards/Vehicle Storage C P
Warehousing, Distribution, and Freight Movement P1-3;C4 P1-3;C4
Acres of Employment Center District 2,206 0
Share of Study Area Acres 9% 0%
Source: Pierce County, 2023.
Note: Allowed only as a component of a mixed-use development and shall not be permitted as a
stand-alone use.
INCORPORATION STUDY FOR PARKLAND, PAGE 101
SPANAWAY, MIDLAND, & FREDERICKSON MAY 11, 2023
Exhibit 65. Parks & Recreation Zone Use Table, 2023
Mid- Pierce County -
Use Type P-S-M Frederickson
County Uninc.
Civic
Community and Cultural Services P7 P7 P7 P7
Public Park Facilities P1,2,4,8;C3 P1,2,4;C3 P1,2,4;C3 P1,2,4;C3
Public Safety Services P1 P1 P1 P1
Utilities
Electrical Facilities, Pipelines, Sewage
P - - P
Collection
Electrical Generation Facilities C3 C3 C3 C3
Stormwater Facilities* - - - P
Telecommunication Towers or Wireless
P1;C2 P1;C2 P1;C2 P1;C2
Facilities
Water Supply Facilities P1;A2;C3 P1;A2;C3 P1;A2;C3 P1;A2;C3
Acres of Park & Recreation District 366 0 132 0
Share of Study Area Acres 2% 0% 1% 0%
Source: Pierce County, 2023.
Note: Allowed only as a component of a mixed-use development and shall not be permitted as a
stand-alone use.
INCORPORATION STUDY FOR PARKLAND, PAGE 102
SPANAWAY, MIDLAND, & FREDERICKSON MAY 11, 2023
APPENDIX G: PARKLAND, SPANAWAY, MIDLAND AND
FREDERICKSON STUDY AREA DEMOGRAPHICS, COMMUTE
TRENDS AND EXISTING DISTRICTS
Exhibit 66 through Exhibit 70 show demographic data by census tract.
These maps are intended to show attributes of the Study Area community as
well as differences of key demographic data within the Study Area. Exhibit
71 and Exhibit 72 show where concentrations of Study Area residents work
and where Study Area workers live. This provides an understanding of the
share of Study Area residents that live close to where they work and as well
as key work destinations for residents.
INCORPORATION STUDY FOR PARKLAND, PAGE 103
SPANAWAY, MIDLAND, & FREDERICKSON MAY 11, 2023
Exhibit 66. Study Area Population, 2021
Sources: U.S. Census Bureau ACS 5-Year Estimates, 2021; Community Attributes Inc., 2023.
INCORPORATION STUDY FOR PARKLAND, PAGE 104
SPANAWAY, MIDLAND, & FREDERICKSON MAY 11, 2023
Exhibit 67. Study Area Population Density, 2021
Sources: U.S. Census Bureau ACS 5-Year Estimates, 2021; Community Attributes Inc., 2023.
INCORPORATION STUDY FOR PARKLAND, PAGE 105
SPANAWAY, MIDLAND, & FREDERICKSON MAY 11, 2023
Exhibit 68. Study Area People of Color, 2021
Sources: U.S. Census Bureau ACS 5-Year Estimates, 2021; Community Attributes Inc., 2023.
INCORPORATION STUDY FOR PARKLAND, PAGE 106
SPANAWAY, MIDLAND, & FREDERICKSON MAY 11, 2023
Exhibit 69. Study Area Median Household Income, 2021
Sources: U.S. Census Bureau ACS 5-Year Estimates, 2021; Community Attributes Inc., 2023.
INCORPORATION STUDY FOR PARKLAND, PAGE 107
SPANAWAY, MIDLAND, & FREDERICKSON MAY 11, 2023
Exhibit 70. Study Area Educational Attainment, 2021
Sources: U.S. Census Bureau ACS 5-Year Estimates, 2021; Community Attributes Inc., 2023.
INCORPORATION STUDY FOR PARKLAND, PAGE 108
SPANAWAY, MIDLAND, & FREDERICKSON MAY 11, 2023
Exhibit 71. Study Area Resident Work Destinations, 2020
Sources: U.S. Census Bureau, 2023; Community Attributes Inc., 2023.
INCORPORATION STUDY FOR PARKLAND, PAGE 109
SPANAWAY, MIDLAND, & FREDERICKSON MAY 11, 2023
Exhibit 72. Study Area Workers Home Destinations, 2020
Sources: U.S. Census Bureau, 2023; Community Attributes Inc., 2023.
INCORPORATION STUDY FOR PARKLAND, PAGE 110
SPANAWAY, MIDLAND, & FREDERICKSON MAY 11, 2023
Exhibit 73. Study Area School Districts, 2023
Sources: Pierce County, 2023; Community Attributes Inc., 2023.
INCORPORATION STUDY FOR PARKLAND, PAGE 111
SPANAWAY, MIDLAND, & FREDERICKSON MAY 11, 2023
Exhibit 74. Study Area Fire Districts, 2023
Sources: Pierce County, 2023; Community Attributes Inc., 2023.
INCORPORATION STUDY FOR PARKLAND, PAGE 112
SPANAWAY, MIDLAND, & FREDERICKSON MAY 11, 2023
Exhibit 75. Study Area Water Districts, 2023
Sources: Pierce County, 2023; Community Attributes Inc., 2023.
INCORPORATION STUDY FOR PARKLAND, PAGE 113
SPANAWAY, MIDLAND, & FREDERICKSON MAY 11, 2023
Exhibit 76. Study Area Transit Routes, 2023
Sources: Pierce County, 2023; Community Attributes Inc., 2023.
INCORPORATION STUDY FOR PARKLAND, PAGE 114
SPANAWAY, MIDLAND, & FREDERICKSON MAY 11, 2023
A P P E N D I X H: P I E R C E C O U N T Y ’ S C O U N T Y W I D E P L A N N I N G
POLICIES AND OTHER POLICIES AND PROGRAMS RELATED TO
ANNEXATION AND INCORPORATION
Washington State Growth Management Act
The state’s Growth Management Act requires: (1) that the County designate
an "urban growth area" (UGA) or areas within which urban growth shall be
encouraged and outside of which growth shall occur only if it is not "urban"
in character; (2) that each municipality in the County be included within an
UGA; (3) that an UGA include territory outside of existing municipal
boundaries only if such territory is characterized by urban growth or is
adjacent to territory that is already characterized by urban growth.63
Growth Management Act amendments RCW 36.70A.210(3) (a), (b), and (f)
expressly require that countywide planning policies address the
implementation of UGA designations, the promotion of contiguous and
orderly development, the provision of urban services to such development,
and the coordination of joint county and municipal planning within UGAs.64
Puget Sound Regional Council Vision 2050
Members of the Puget Sound Regional Council adopted VISION 2050 in
October 2022. VISION 2050 is a plan for the region’s growth, capturing a
vision for the regions environmental, economic and transportation future.65
VISION 2050 also includes a Regional Growth Strategy for how and where
the central Puget Sound region can grow to a forecast of 5.8 million people
and 3.4 million jobs by the year 2050.66 Relevant goals and implementation
strategies for VISION 2050 include the following.
Annexation and Incorporation
MPP-DP-28: Support joint planning between cities, counties, and service
providers to work cooperatively in planning for urban unincorporated areas
to ensure an orderly transition to city governance, including efforts such as:
63 RCW 36.70A.110
64 Pierce County Countywide Planning Policies, 2022.
65 VISION 2050’s multi-county planning policies (MPPs) serve many purposes. MPPs
provide a framework for updating countywide planning policies. Cities and counties
use MPPs as a guide when updating local comprehensive plans. At PSRC, VISION
2050 and the MPPs inform updates to the Regional Transportation Plan and
Regional Economic Strategy. The MPPs provide policy direction for the
implementing the Regional Growth Strategy. VISION 2050 actions outline
responsibilities and tasks for PSRC, local governments, and others to implement the
plan.
66 VISION 2050 Planning Resources, PSRC, March 2021.
INCORPORATION STUDY FOR PARKLAND, PAGE 115
SPANAWAY, MIDLAND, & FREDERICKSON MAY 11, 2023
(a) establishing urban development standards, (b) addressing service and
infrastructure financing, and (c) transferring permitting authority.67
MPP-DP-29: Support annexation and incorporation in urban unincorporated
areas by planning for phased growth of communities to be economically
viable, supported by the urban infrastructure, and served by public transit.68
Rural Areas and Natural Resource Lands
MPP-DP-35: In the event that a proposal is made for creating a new, fully
contained community, the county shall make the proposal available to other
counties and to the Regional Council for advance review and comment on
regional impacts.69
Pierce County Countywide Planning Policies
The Countywide Planning Policies adopted on May 17, 2022, and ratified on
November 14, 2022, are intended to be the consistent “theme” of growth
management planning among Pierce County jurisdictions. The policies also
establish processes and mechanisms designed to foster open communication
and feedback among the jurisdictions.70
Annexation
The County recognizes that unincorporated lands within UGAs are often
Potential Annexation Areas (PAA) for cities. Although annexation is
preferred, there are also areas where incorporation could occur. The County
will work with existing municipalities and emerging communities to ensure
efficient transitions.71
Annexations and incorporations have direct and significant impacts on the
revenue of county government, and therefore, may affect the ability of the
County to fulfill its role as a provider of certain regional services. The
municipalities will work closely with the County to develop appropriate
revenue sharing and contractual service arrangements that facilitate the
goals of GMA.72
67 VISION 2050 A Plan for the Central Puget Sound Region, October 2020.
68 VISION 2050 A Plan for the Central Puget Sound Region, October 2020.
69 VISION 2050 A Plan for the Central Puget Sound Region, October 2020.
70 Pierce County Countywide Planning Policies, Page 99, November 2022.
71 Pierce County Countywide Planning Policies, Page 106, November 2022.
72 Pierce County Countywide Planning Policies, Page 107, November 2022.
INCORPORATION STUDY FOR PARKLAND, PAGE 116
SPANAWAY, MIDLAND, & FREDERICKSON MAY 11, 2023
Pierce County Comprehensive Plan
Annexation and Urban Growth Area Expansion (2-20)
Goal Land Use-2: All unincorporated urban areas within the urban growth
area shall either be affiliated with neighboring cities and towns as PAAs or
identified as Potential Incorporation Areas (PIAs).
Goal Land Use 2.3: The general preference is for unincorporated urban
areas to be affiliated with neighboring cities or towns rather than being
identified as a PIA. However, a PIA designation can be established where
incorporation of an area is appropriate based upon logical geographic
boundaries; size; population; a potential tax base to support a City; a variety
of uses needed for a City, including residential, businesses, civic and
recreational; urban services and facilities provided other than by adjacent
cities; a community identity; and other appropriate factors.
Goal Land Use-3: Pierce County should establish a program that explores
the possibility of incorporation of identified areas.
Goal Land Use-3.:1 Pierce County should establish stakeholder groups of
local residents, service providers, businesses, and other interested parties to
identify opportunities and challenges associated with the incorporation of
identified areas.
Goal Land Use 3.2: Pierce County should explore the economic viability of
incorporation through completion of incorporation feasibility studies. An
incorporation study should include at a minimum the area proposed to be
included (LU 3.2.1); current estimates and future projections of population
(LU 3.2.2); existing land uses and housing (LU 3.2.3); per capita assessed
valuation (LU 3.2.4); current services provided to the community by the
County, special purpose districts, school districts, other countywide
authorities, and the state (LU 3.2.5); analysis of tax and revenue options for
the operations of a new city (LU 3.2.6); revenue estimates (LU 3.2.7);
expenditures – proposed city budget including operating expenditures,
capital facilities, and equipment expenditures (LU 3.2.8); land use policy (LU
3.2.9); provision of services by new city and impacts upon current service
providers (LU 3.2.10); and analysis of alternatives (LU 3.2.11).
Goal Land Use-4: Facilitate the transformation of unincorporated urban
areas into cities and towns through annexation.
Goal Land Use-4.3: Encourage the annexation or incorporation of
unincorporated urban areas through improving the local economic market.73
73 Pierce County Comprehensive Plan, Land Use Element.
INCORPORATION STUDY FOR PARKLAND, PAGE 117
SPANAWAY, MIDLAND, & FREDERICKSON MAY 11, 2023
Existing and Future Potential Incorporation Area (PIA)
The County has designated one PIA and plans to designate others. The
County has identified a PIA for the Employment Based Planned Community
(EBPC) of Tehaleh and expects to designate additional PIAs upon further
review. The Tehaleh PIA designation was based upon a variety of factors
including its size and projected population, which are comparable to those of
other cities in Pierce County; its EBPC designation and master plan,
distinguishing it from other urban areas; its separate geographical identity,
removed from nearby cities through distance, land use, and topography; its
mixture of urban densities and other uses needed for a complete city,
including employment, civic, commercial, parks and other uses; uses that
establish a viable potential tax base; a sense of unique identity and
community that has already developed; and the provision of urban services
that are planned to serve the whole development, largely financed by the
residents and not provided by nearby cities. These factors, as well as the
expressed views of current residents, make incorporation a strong potential.
PIAs are identified as part of the County's Comprehensive Plan.
This PIA designation includes additional parcels that are owned by others
within the general boundaries of Tehaleh. These additional parcels are part
of the logical boundary of the future incorporation area. Although they are
not part of the Tehaleh Master Plan, they are in the UGA, are in the
Cascadia Sewer Service Area, are served by the same street network, and are
physically located so that they should be part of the same municipality.
Additional PIAs may be identified and designated through community
plans.74
Frederickson Community Plan
A PIA designation indicates that an area would like to work toward
incorporation in the future. According to State law, in order for an area to
incorporate it must show that it is economically viable. Being within a PIA
does not obligate a jurisdiction to incorporate within a defined timeline.75
Goal one of the Fredrickson Community Plan Land Use Element designates
the Frederickson Community Plan area as a Potential Incorporation Area
(PIA) and acknowledges that a future incorporation boundary proposed by
residents could include land outside the community plan area.76
Mid-County Community Plan
There is a focus on prioritizing community desirability and character by
preserving heritage resources and natural resources. The community has
74 Pierce County Comprehensive Plan, Land Use Element.
75 Pierce County Comprehensive Plan, Appendix D: Fredrickson Community Plan.
76 Pierce County Comprehensive Plan, Appendix D: Fredrickson Community Plan.
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enacted an overall goal to support regional growth while balancing urban
commercial areas with residential areas. Through this, the goal is to create
opportunities locally for growth to meet needs of local residents, including to
provide jobs and infrastructure (transportation) resources while minimizing
impacts to the community’s natural resources and identity.77
The Mid-County Community Plan emphasizes the need to develop more
housing options, as new housing production has lagged in recent years,
despite increasing demand. Furthermore, 90% of residents commuted outside
the region for work, spotlighting the dire jobs to housing imbalance.
Increased traffic congestion in recent years, spurred by recent residential and
commercial development, and polluted regional creeks and groundwater
reserves highlight the need for significant climate investments, to prioritize
health and sustainability. Other significant focal points include increasing
capacities in schools, developing new parks and recreational spaces and
leveraging vacant and underutilized land, prioritizing the mitigation of
detrimental impacts of expansion and further development on both the
community and environment.78
Parkland-Spanaway-Midland Community Plan
Overall community goals include emphasizing health, safety, a strong sense
of community; high quality of life; preservation of existing residential
structures; and development of new neighborhoods with a variety of housing
types. The plan identifies that new development and expansion should be
focused around existing higher intensity uses and along major transportation
corridors to mitigate the impacts from higher density development to lower
density and natural resources. Additionally, the community places a high
value on its rural atmosphere and natural and wildlife ecosystems, which
support fish, wildlife and people.79
Looking forward, the plan highlights a need to continue focus mitigating
traffic volume and congestion, collectively working to lower housing costs,
increasing development and utilization of vacant and underutilized land,
creating an employment corridor to boost local employment opportunities,
increasing the capacity of local schools, developing more parks and
recreational spaces, improving water quality and emphasizing the
preservation of various natural habitats for critical at-risk species.80
77 Pierce County Comprehensive Plan, Appendix H: Mid-County Community Plan.
78 Pierce County Comprehensive Plan, Appendix H: Mid-County Community Plan.
79 Pierce County Comprehensive Plan, Appendix I: Parkland-Spanaway-Midland
Communities Plan.
80 Pierce County Comprehensive Plan, Appendix I: Parkland-Spanaway-Midland
Communities Plan.
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APPENDIX I: COMMUNITY SURVEY RESULTS
Community Attributes conducted an online survey on behalf of the
Washington State Department of Commerce to request residents’ input to
inform this study. The survey was conducted in March, April, and May of
2023 and received 500 responses.
Survey respondents were asked to rate their level of satisfaction with current
public services within the Parkland Study Area from 1 (Very Unsatisfied) to
5 (Very Satisfied). Respondents were least satisfied with the current level of
public safety services, roads and transportation services and parks and
recreation services provided where they live. Survey respondents were mostly
satisfied or very satisfied with the current level of utilities (sewer, water and
waste management) and fire services. Roughly 38% of respondents reported
they were very unsatisfied or unsatisfied with the overall level of public
services provided where they live, compared to 30% of respondents who
reported they were satisfied or very satisfied. (Exhibit 77)
Exhibit 77. Level of satisfaction with public services within the Parkland
Study Area
Sources: Community Survey, 2023; Community Attributes Inc., 2023.
Survey respondents were then asked to select their top three priorities for
public services for future investment within the Study Area. Overall, public
safety, roads and transportation and schools and education were amongst the
most common priorities selected by respondents. Exhibit 78 shows the
percentage of respondents that selected these public services as either
INCORPORATION STUDY FOR PARKLAND, PAGE 120
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priority one, two or three. The ‘Other’ category included mentions of crime
and drug use, homelessness and police services.
Exhibit 78. Top 3 priorities for public services for future investment within
the Study Area
Sources: Community Survey, 2023; Community Attributes Inc., 2023.
Exhibit 79 shows the responses to the survey question about which current
city in Pierce County most closely aligns with the study. A total of 338
responses were received for this question. Almost a quarter of respondents
indicated Spanaway most closely aligns with the Study Area, while another
quarter mentioned Parkland. Roughly 15% of respondents said they don’t
know or don’t understand the question.
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Exhibit 79. Current cities in Pierce County that most closely align with the
Study Area
% of Total
City # Responses
Responses
Parkland 80 24%
Spanaway 77 23%
Tacoma 53 16%
Don't Know/Don't Understand Question 49 14%
Puyallup 22 7%
Frederickson 14 4%
Midland 9 3%
Lakewood 8 2%
Graham 3 1%
University Place 3 1%
Summit 3 1%
Brookdale 1 0%
Brookdale/Parkland 1 0%
Buckley 1 0%
Dupont 1 0%
Fircrest 1 0%
Gig Harbor 1 0%
Lakewood/Lacy 1 0%
Orting 1 0%
Parkland/Spanaway 1 0%
Parkland/Spanaway/Frederickson/Puyallup 1 0%
Parkland/Tacoma 1 0%
Pierce County 1 0%
Spanaway/Frederickson 1 0%
Spanaway/Graham 1 0%
Spanaway/Parkland 1 0%
Tacoma/Spanaway/Frederickson 1 0%
Waller 1 0%
Total 338 100%
Sources: Community Survey, 2023; Community Attributes Inc., 2023.
Lastly, respondents were asked if they have anything else to add to inform
this study. This was an open-ended survey question and the following themes
emerged from the responses received (n=197).
Opposed to incorporation.
o Almost a third of respondents who provided an answer to this
question mentioned they were opposed to incorporation.
o Roughly 45% of these did not provide a reason for their
opposition.
INCORPORATION STUDY FOR PARKLAND, PAGE 122
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o Roughly 34% of respondents who oppose incorporation
expressed concerns about increases in taxes (especially
property tax) and government control because of incorporation:
“An added layer of government will do nothing to enhance the
community and only add to the frustrations of increasing taxes
and government control over private property and life in
general.”
o A few respondents mentioned they do not wish to live in a city
and “live in this part of unincorporated Pierce County for a
reason”.
Crime and drug use.
o Roughly 13% of respondents who provided an answer to this
question expressed concerns about the level of crime and drug
use in the Study Area. In many instances, respondents
associated homelessness with an increase in crime and drug
use. “This area needs more public safety, services for addition,
and code enforcement. Trash is a serious issue and along with
ecological disasters that bloom with addicted people living un-
housed. There needs to be some accountability as it seems
taxpayers, homeowners and families needs are marginalized
when un-housed addicts are allowed to camp.” Property theft
and personal safety were also mentioned in relation to concerns
about a rise in crime and drug use. In some cases, respondents
mentioned a desire for more police as well as for more services
for people with mental health and substance abuse issues.
Homelessness.
o Homelessness was a prevalent theme, mentioned by nearly 15%
of respondents to this question. For many respondents, the
challenge of fighting homelessness was accompanied by a need
to address crime, drug use and distribution and litter.
Homelessness is mentioned in relation to issues such as
panhandling, vagrancy, loitering, theft and trespassing. “The
crime and homelessness population is growing with each
passing day to the point where we don’t feel safe going for a
walk in our own neighborhood. something needs to change.”
Other themes that were mentioned include a need for more police,
improvements to education, public safety and pedestrian safety. Some
respondents expressed the need for more information related to the
incorporation study.
Respondents Demographics
The tables below provide information about the survey respondents on place
of residence, age, gender, race, household income and education attainment.
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o Roughly 79% of respondents live in the Parkland-Spanaway-Midland
area.
o Almost half of respondents were between 36 and 59 years old, and
another 33% were over 60 years old.
o Of the 489 respondents that provided an answer to the gender
question, 67% identified as female.
o Most respondents to the survey (63%) were White.
o Survey respondents were distributed across a wide range of household
incomes. Roughly one-fifth of respondents reported between $100,000
and $149,000 in household income.
o The majority (72%) of survey respondents had a bachelor’s degree or
less.
Exhibit 80. Survey Respondents Place of Residence
# Responses % of Total
Parkland-Spanaway-Midland 395 79%
Frederickson 60 12%
Other 27 5%
Mid-County 18 4%
Total 500 100%
Sources: Community Survey, 2023; Community Attributes Inc., 2023.
Exhibit 81. Survey Respondents Age
# Responses % of Total
Less than 25 years
old 9 2%
25 to 35 64 13%
36 to 59 235 48%
Over 60 years old 163 33%
Prefer not to answer 20 4%
Total 491 100%
Sources: Community Survey, 2023; Community Attributes Inc., 2023.
Exhibit 82. Survey Respondents Gender
# Responses % of Total
Female 329 67%
Male 101 21%
Non-Binary 4 1%
Other 3 1%
Prefer not to answer 52 11%
Total 489 100%
Sources: Community Survey, 2023; Community Attributes Inc., 2023.
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Exhibit 83. Survey Respondents Race
# Responses % of Total
White 308 63%
Two or More Races 49 10%
Asian 11 2%
Native Hawaiian/Pacific Islander 7 1%
American Indian/Alaskan Native 6 1%
Black or African American 7 1%
Other 12 2%
Prefer not to answer 90 18%
Total 490 100%
Sources: Community Survey, 2023; Community Attributes Inc., 2023.
Exhibit 84. Survey Respondents Household Income
# Responses % of Total
Less than $20,000 7 1%
$20,000 to $34,999 33 7%
$35,000 to $49,999 31 6%
$50,000 to $74,999 88 18%
$75,000 to $99,999 80 16%
$100,000 to $149,999 90 18%
$150,000 to $199,999 46 9%
$200,000 or More 25 5%
Prefer not to answer 90 18%
Total 490 100%
Sources: Community Survey, 2023; Community Attributes Inc., 2023.
Exhibit 85. Survey Respondents Education Attainment
# Responses % of Total
Less than High School 3 1%
High School 117 24%
Associate's Degree 127 26%
Bachelor's Degree 106 22%
More than Bachelor's Degree 74 15%
Prefer not to answer 66 13%
Total 493 100%
Sources: Community Survey, 2023; Community Attributes Inc., 2023.
INCORPORATION STUDY FOR PARKLAND, PAGE 125
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APPENDIX J: INCORPORATION PROCESS
The State of Washington, through provisions of Chapter 35 and 35A RCW
provide steps for the creation of new cities through a petition process
initiated by residents of the area proposed to be incorporated. RCW 35.02.030
requires that the petition:
Indicate whether the proposed city or town shall be a non-charter code
city operating under Title 35A RCW, or a city or town operating under
Title 35 RCW;
Indicate the form or plan of government the city or town is to have
(mayor-council or council-manager);
Set forth and particularly describe the proposed boundaries of the
proposed city or town;
State the name of the proposed city or town;
State the number of inhabitants therein, as nearly as may be;
“Pray” the city or town be incorporated.
Any contiguous area with at least 1,500 residents may propose incorporation
(RCW 35.02.010 as amended by SHB 2176). Any area within a county that
plans under the Growth Management Act may incorporate only if it lies
within a designated urban growth area.81
Incorporation Process
The process set out in the incorporation statutes for initiating incorporation
follows. In 1994 the legislature adopted SHB 2176 that changed the process
for handling of petitions. The bill also provided a priority process for
competing annexations and incorporations, whereby annexations initiated
within 90 days of the start of the incorporation process would have priority
over the incorporation effort.
Interested persons or groups determine the boundaries to be proposed
for a new city, form of government proposed, etc. as prescribed in RCW
35.02.030.
Proponents, which must be registered voter(s) residing in the proposed
city, file notice of the proposed incorporation with the county
legislative authority. The notice includes the information required to
be included in the incorporation petition and requires a filing fee.82
The county legislative authority notifies the boundary review board
(Board) of the incorporation notice.
81 RCW 36.93.150(2)
82 RCW 35.02.015
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Within 30 days of the notice being filed, the Board holds a preliminary
public meeting of the incorporation.83
The County auditor assigns an identification number within one
working day after the public meeting.84 Proponents must finalize the
legal description to be used on the petition at that time.
Proponents of incorporation seek signatures on the petition. The
petition of incorporation must be signed by at least ten percent of the
number of voters residing within the proposed city or town and filed
with the auditors of the county no later than 180 days after the date of
the public meeting on the proposed incorporation.85
Once the auditor certifies the sufficiency of the petition, petitioner files
formal notice of intention of the proposed incorporation with the
Board.86
If the Board invokes jurisdiction, it holds hearings, conducts studies
and makes a recommendation about the proposal. The Board may
amend boundaries pursuant to statutory requirements and criteria as
part of its approval.87 The board must, within 40 days of the conclusion
of the hearing, file its written decision.88
The county legislative authority sets the election date at the next
special election held at least 60 days after Board action.89
Role of the Boundary Review Board
The Washington State Boundary Review Board (BRB) for Pierce County
Boundary was created by state statute RCW 36.93.030. The Statute
establishes independent review agencies at the local level to oversee and
regulate municipal and special district boundary changes, whether by
annexation or incorporation, for counties with a population of 210,000 or
more. The board may review any proposal pertaining to the creation,
incorporation, or change in the boundary, other than a consolidation of any
city town or special purpose district.90 The Pierce County BRB is comprised of
five voting members:
2 persons appointed by the governor
1 person appointed by the county appointing authority
1 person appointed by the mayors of the cities and towns located
within the county
83 RCW 35.02.015
84 RCW 35.02.017
85 RCW 35.02.020 as amended by SHB 2176
86 RCW 35.02.037
87 RCW 36.93.010 et seq., as amended by SHB 2176
88 RCW 36.93.160(4)
89 RCW 35.02.078 as amended by SHB 2176
90 RCW 36.93.090
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1 person appointed by the board from nominees of special districts in
the county
The BRB’s task is to review certain annexations to cities and special purpose
districts, incorporations of new cities, and the creation of new special purpose
districts. The cases over in which the BRB has jurisdiction are set out in
RCW 36.93.090, as follows:91.
“(1) The: (a) Creation, incorporation, or change in the boundary, other
than a consolidation, of any city, town, or special purpose district; (b)
consolidation of special purpose districts, but not including consolidation
of cities and towns; or (c) dissolution or disincorporation of any city, town
or special purpose district, except that a board may not review the
dissolution or disincorporation of a special purpose district which was
dissolved or disincorporated pursuant to the provisions of Chapter 36.96
RCW: PROVIDED, that the change in the boundary of a city or town
arising from the annexation of contiguous city or town owned property
held for a public purpose shall be exempted from the requirements of this
section; or (2) The assumption by any city or town of all or part of the
assets, facilities, or indebtedness or a special purpose district which lies
partially within such city or town; or (3) The establishment of or change in
the boundaries of a mutual water and sewer system or separate sewer
system by a water district pursuant to Chapter 57.08.065 RCW or Chapter
57.40 RCW, as now or hereafter amended, or (4) The establishment of or
change in the boundaries of a mutual sewer and water system or separate
water system by a sewer district pursuant to Chapter 56.20.015 RCW or
Chapter 56.36 RCW, as now or hereafter amended; or (5) The extension of
permanent water or sewer service outside of its existing corporate
boundaries by a city, town, or special purpose district.”
The contents for the notice of intention to the board must include:
the nature of the action sought,
a brief statement of the reasons for the proposed incorporation,
the legal description of the boundaries proposed to be created,
and a county assessor’s map that designates the proposed
boundaries.92
While the board must review any incorporation proposed or other action as
outlined above in the county in which it is located, it does not formally do so
unless one of the following occurs within forty-five days of the filing of a
“notice of intention” by the jurisdiction proposing the action:
91 Certain exemptions from BRB jurisdictions are also set out in Chapter RCW
36.93.105
92 RCW 36.93.130
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Five board members request review (with significant exceptions),
Any government unit affected requests review,
A petition requesting review is filed and signed by 5% of the registered
voters in the area or the owners of 5% of the assessed valuation in the
area,
A majority of the board members concur with a request from 5% of the
registered voters residing within one-quarter mile of the proposed
action.93
For its final decision, the board is required to “attempt to achieve” the
following objectives, as provided in the statute:
“Preservation of natural neighborhoods and communities; Use of physical
boundaries, including but not limited to bodies of water, highways, and
land contours; Creation and preservation of logical service areas;
Prevention of abnormally irregular boundaries; Discouragement of
multiple incorporations of small cities and encouragement of incorporation
of cities in excess of ten thousand population in heavily populated urban
areas; Dissolution of inactive special districts; Adjustment of impractical
boundaries; Incorporation as cities or towns or annexations to cities or
towns of incorporated areas which are urban in character; and Protection
of agricultural and rural lands which are designated for long term
productive agricultural and resource use by a comprehensive plan adopted
by the county.”94
A Boundary Review Board may do any of the following in response to an
incorporation proposal: approve; modify and approve by adding or deleting
territory; disapprove a proposal of an area of less than 7,500 population; or
recommend against incorporation of an area with a population of 7,500 or
more.95
In addition to statutory procedural requirements, each board adopts their
own rules of practice and procedure. In accordance with RCW 35.02.015, the
Washington State Boundary Review Board for Pierce County has established
procedures to make arrangements to hold a public meeting within 30 days
after the Pierce County Council receives a notification of proposed circulation
of incorporation proceedings.96 The arrangements include coordinating with
the proponent(s) on the schedule and publishing notice of the meeting. The
primary purpose of the public meeting is the exchange of information
between the proponent(s) who filed the notice of the incorporation and
members of the proposed incorporation community. The meeting is required
93 RCW 36.93.130
94 RCW 36.93.180
95 RCW 36.93.150
96 Washington State Boundary Review Board for Pierce County: Practice and
Procedure, Article IV, Section A.2, February 2012.
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to be in the evening at a location in the vicinity of the proposed new city
incorporation and include a quorum of the board.
Once the jurisdiction of the board has been invoked per RCW 36.943.160(1), a
hearing is set by the board to be held in accordance with the board’s rules on
site visits, testimony, rebuttals, etc.97
The Washington State Boundary Review Board for Pierce County has
outlined a format required for a Notice of Intention for incorporation
proposals. The required documentation includes the following background
information and maps:
A brief description of and reason for seeking the proposed action, to
include a statement of the method used to initiate the proposed action
(i.e. petition or election method), and the complete RCW designation.
The original petition calling for the incorporation/formation with a
letter of certification from the Pierce County Elections Department.
A copy of the Declaration and current SEPA checklist with adequate
explanations to answers.
The legal description of the boundaries of the area involved in the
proposed action.
Maps: Pierce County Assessor’s quarter section map and a variety of
required vicinity maps.98
The board must consider the following factors as outlined in RCW
36.93.170:
Overview – population of proposal (what percentage is that to
unincorporated Pierce County); Territory, population density, assessed
valuation,
Land use – existing, uses permitted,
Planning Data: Revenues/Expenditures, Services (water, sewer, fire
service, community)
General – analysis and description of the effect of the proposal on
adjacent areas and on the local government structure of the county or
any service district; description of the topography and natural
boundaries of the proposal; information on how much growth has been
projected for this area during the next 10-year period?99
Further, the intention documentation must describe how the proposal meets
the objects of RCW 36.93.180.100
97 Washington State Boundary Review Board for Pierce County: Practice and
Procedure, Article IV, Section A.3, February 2012.
98 Pierce County Notice of Intention Format, May 1999.
99 Pierce County Notice of Intention Format, May 1999.
100 Pierce County Notice of Intention Format, May 1999.
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Finally, a study of the proposed incorporation supports a boundary review
board’s review of factors affecting the proposal. It also can serve to inform the
voters regarding the proposed incorporation and may be useful to the new
city officials. The study should address the factors that the boundary review
board must consider.101
The Boundary Review Board statute also provides guidelines for the BRB’s to
use in pursuing the state objectives as follows:
Chapter 36.93.170 RCW Factors to be considered by board -
Incorporation proceedings exempt from state environmental policy act.
In reaching a decision on a proposal or an alternative, the board shall
consider the factors affecting such proposal, which shall include, but
not be limited to the following:
o Population and territory; population density; land area and
land uses; comprehensive plans and zoning, as adopted under
Chapter 35.63, 35A.63, or 36.70 RCW; comprehensive plans and
development regulations adopted under chapter 36.70A RCW;
applicable service agreements entered into under chapter
36.115 or 39.34 RCW; applicable interlocal annexation
agreements between a county and its cities; per capita assessed
valuation; topography, natural boundaries and drainage basins,
proximity to other populated area; the existence and
preservation of prime agricultural soils and productive
agricultural uses; the likelihood of significant growth in the
area and in adjacent incorporated and unincorporated areas
during the next ten years; location and most desirable future
location of community facilities;
o Municipal services; need for municipal services; effect of
ordinances, governmental codes, regulations and resolutions on
existing uses; present cost and adequacy of governmental
services and controls in area; prospects of governmental
services from other sources; probable future needs for such
services and controls; probable effect of proposal or alternative
on cost and adequacy of services and controls in area and
adjacent area; the effect on the finances, debt structure, and
contractual obligations and rights of all affected governmental
units; and
o The effect of the proposal or alternative on adjacent areas, on
mutual economic and social interests, and on the local
governmental structure of the county.
101 RCW 36.93.170
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o The provisions of Chapter 43.21C RCW, State Environmental
Policy, shall not apply to incorporation proceedings covered by
Chapter 35.02 RCW.
The BRB is also to act consistent with the Growth Management Act,
particularly with regard to the Urban/Rural line.102 In other words, the BRB
cannot allow the annexation or incorporation of rural areas.
The BRB, then, has potential jurisdiction over the incorporation and
annexation alternatives, and may also play a role in the Status Quo
alternatives with regard to changes to any of the special purpose districts.
102 RCW 36.93.157
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APPENDIX K: FORMS OF GOVERNMENT AND IMPLEMENTATION
CONSIDERATIONS
This appendix documents the forms of government newly incorporated
communities in Washington can establish, including organizational roles and
responsibilities. Additionally, it reviews the potential impact of the form of
government on the incorporation process.
Classification Types and Forms of Government
The incorporation proposal for a proposed new incorporation area must
indicate the type of city that will be created both in terms of the plan for the
city classification designation and the form of government. The Petition for
Incorporation to the county legislative authority must state whether the
proposed city or town will be a non-charter code city operating under Title
35A RCW or a city operating under Title 35 RCW as a second-class city and
the proposed form or plan of government (35.02.030).103
The classification of the city based on successful incorporation has impacts on
the authority of the municipality in general, as code-cities enjoy broad
statutory home rule authority in matters of local concern while second class
cities have more limited powers, including only those expressly granted it by
statute.104 The city classification also has impacts on the statutory rules
regarding the form of government, including the powers of the mayor, the
size of the City Council, and required appointive positions.105
Municipal Forms of Government
There are two forms of government provided to code cities under the Optional
Municipal Code – the mayor council plan (Ch. 35A.12 RCW and 35.23 RCW
for 2nd class cities) and the council-manager plan (Ch. 35A.13 RCW for code
cities and 35.18 RCW for non-code cities). The critical difference in the plans
is the distribution of authority between the legislative and executive officials.
The mayor-council plan is the oldest and most prevalent municipal form in
the state used by a variety of community types (e.g., large, small, urban and
rural). The required elective city positions are the mayor and city council
members, who all must comply with requirements for residency and voter
registration in the community. The mayor serves as the Chief Executive and
103 The Optional Municipal code provides for the establishment of code cities to serve
as an alternative to the statutory system of municipal government in Washington by
creating broad statutory home rule authority in matters of local concern, under the
establishment of code city classification (Ch. 119, Laws of 1967, Ex. Sess.).
104 Municipal Research and Services Center (MRSC) Code City Handbook, 2009, p. 4
105 MRSC Code City Handbook, pages 9, 13
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Administrative Officer and Ceremonial head of state while the City Council
adopts and enforces ordinances, provides services, and levies taxes.
Appointments in this form are required for the City Clerk and Chief Law
Enforcement Officer roles. There is also a hybrid version of the form in which
a Chief Administrator is hired to separate roles for political representation
and professional administration of city operations. The form also provides for
an elected, accountable city executive.106
The Council-Manager form of government is utilized by several medium to
large cities in the state, and while not as common as the mayor-council form,
most new communities formed since 1970 have adopted this form, including
the City of Spokane Valley which incorporated in 2003, as well as
Sammamish, Kenmore and Maple Valley. In this form, the City Council
members are the only elected positions, and they are responsible for policy
making as well as appointing a professional City Manager. The City Manager
serves as the Chief Executive and Administrative Officer. The City Council
may not interfere with the City Manager’s administration but may vote for
their termination. The form was designed to increase the city’s professional
and efficient administration. The City Manager is required to be selected
based on administrative and executive qualities (RCW 35A.13.050 for code
cities, RCW 35.18.040 other cities). The municipality’s structure is based on a
business model, such as a corporate Board of Directors appointing a CEO.
Further, with no residency requirement by state statute, there is a larger
recruitment pool for the position.107
Municipal Forms Adopted in Washington State and
Pierce County
There are 197 code cities in Washington, with 147 operating under mayor-
council and 50 under council-manager. There are five second class cities in
Washington, all operating under the mayor-council form. Most new cities (16
out of 17) created by incorporation since 1970 have been formed under the
council-manager system. Subsequently 3 of the 16 incorporated under the
Council-Manager form have switched to mayor-council form of government.
According to MRSC since 1970 about two-thirds of cities that have
successfully switched forms of government have switched to the Council-
Manager form. 108
Among the largest cities in Washington, the class and form of government
are:
Seattle: First, Mayor-Council
106 MRSC City and Town Forms of Government website, last updated 2/2023
107 MRSC City and Town Forms of Government website, last updated 2/2023
108 MRSC City and Town Forms of Government website, last updated 2/2023
INCORPORATION STUDY FOR PARKLAND, PAGE 134
SPANAWAY, MIDLAND, & FREDERICKSON MAY 11, 2023
Spokane: First, Mayor-Council
Tacoma: First, Mayor-Council
Vancouver: First, Council-Manager
Bellevue: Code, Council-Manager
Kent: Code, Mayor-Council
Among remaining comparison cities, the class and form of government are:
Renton: Code, Mayor-Council
Federal Way: Code, Mayor-Council
Auburn: Code, Mayor-Council
Redmond: Code, Mayor-Council
Sammamish: Code, Council-Manager
Lakewood: Code, Mayor-Council
According to MRSC, of the 20 municipalities in Pierce County, 14 or 70% are
Mayor-Council form of government and the remaining 6 are Council-
Manager. Edgewood, Lakewood and University Place were all incorporated in
the 1990s and all three incorporated under the Council-Manager form of
government. The City of Edgewood switched to the mayor-Council form of
government in 2014 after incorporating in 1996.
Considerations for the Incorporation Process
This section highlights considerations to align the incorporation process with
the form of government selected for the potential new city. In the 1990s there
was a significant increase in the number of cities created through
incorporation. This trend was driven in part by increased growth and
development in the state, especially in the Puget Sound Area, as well as by
the passage of the Growth Management Act (GMA). GMA provided localities
with more tools to manage growth and provide adequate services for
development. Additionally, incorporation can provide communities with
added control over their character and future.109
The form of government can impact the emerging city’s ability to fulfill the
purposes for incorporation. A common goal for incorporation, as noted, is
ensuring that services are provided at acceptable levels and that there is
local control and accountability over the government and community
character. The Council-Manager plan of government focuses on an efficient,
professional approach to city administration with the City Manager
managing municipal operations and implementing Council policy directives.
The Mayor-Council form provides for direct accountability of the Chief
Executive and a unified voice for the new municipality’s vision and
109 MRSC Municipal Incorporation Guide, 2016, p. 1
INCORPORATION STUDY FOR PARKLAND, PAGE 135
SPANAWAY, MIDLAND, & FREDERICKSON MAY 11, 2023
coordination with adjacent communities and may also employ a Chief
Administrative Officer to professionally manage municipal operations.110
The planned form of government can also impact how the incorporation
petition communicates to the Boundary Review Board how incorporation will
meet statutory objectives. The Washington State Boundary Review Board for
Pierce County’s Notice of Intention documentation requires the following
information that it must consider in its decision-making of the incorporation
proposal, as outlined in RCW 36.93.170:
Population/density and proportion of proposal area to unincorporated
Pierce County
Land uses, including existing and permitted
City, county, and fire district revenues and expenditures to be
incurred, gained, lost or reduced
Water, sewer, fire service, and community service levels of service,
providers, and capacity
General impact on adjacent areas and local government structure of
the County or service district
Growth projected.
With the requested documentation’s focus on service provision and impact on
coordinating government structures, the submitted information can highlight
how the objectives will be implemented effectively through the planned form
of government.
Incorporation Transition Period and Formation of New
Government
During the interim or transition period, the new city must be organized,
staffed, and funded. To do this, basic functions are provided through a city
council governing body per RCW 35.02.130, including the provision of local
services. The municipal framework is established with the selection of a
Presiding Officer in the Council-Manager form while the mayor is formally
the Presiding Officer under the Mayor-Council form. The City Manager is
hired within the Council-Manager plan, particularly given the position’s role
as the city administration’s hiring authority to start setting up the
administration staff. In the Mayor-Council plan, a Chief Administrator can
be hired, and duties clarified. A salary schedule for the interim period can be
set up by ordinance or through application of the statutory compensation
schedule in RCW 35A.12.070 and 35A.13.040, which sets a salary formula by
size of community and type of position. A preliminary first-year budget is
prepared by the Mayor in the Mayor-Council form. In the Council-Manager
110 MRSC Municipal Incorporation Guide, 2016, p. 10
INCORPORATION STUDY FOR PARKLAND, PAGE 136
SPANAWAY, MIDLAND, & FREDERICKSON MAY 11, 2023
form, the Council directs the Interim Manager to prepare the preliminary
first-year budget.
In the MRSC New City Guide: How to Start a City in Washington 2013, there
is a suggested schedule of activities during the interim period, which is
included in Appendix L: Overview of Incorporation Transition
Activities. There are a significant set of activities in the implementation of a
newly incorporated city which are outlined in the schedule. The Mayor and
Council fulfill many of the same duties for the development of the
governmental structure, especially for the initial activities to establish the
administration’s organization and procedures. As the implementation
activities become more specialized; for example, in preparation for borrowing
financial resources, the emerging communities’ City Manager or
Administrator, Finance Director, City Attorney, etc. become more involved
than the executive and policy makers.
INCORPORATION STUDY FOR PARKLAND, PAGE 137
SPANAWAY, MIDLAND, & FREDERICKSON MAY 11, 2023
APPENDIX L: OVERVIEW OF INCORPORATION TRANSITION
ACTIVITIES
This appendix provides information on the period between the election on the
question of incorporation and the official date of incorporation. This is a
critical time for the development of the emerging municipality’s
governmental, financial and services framework. There are both immediate
and long-term activities and considerations, some of which are interrelated.
In addition to the referenced statutory requirements, the MRSC’s New City
Guide: How to Start a City in Washington 2013 provides a significant source
of information for this appendix. The MRSC report includes a suggested
schedule of activities for emerging municipalities during their interim period
before official incorporation date, which outlines the major tasks and
responsibilities for cities created through incorporation (Exhibit 86).
Timeline of Incorporation and Transition Activities
The major steps following the successful election on an incorporation
proposal are:
Before the election of the officials, the MRSC New City Guide
recommends formation of an informal or transition group to begin the
planning process. This working group can help facilitate the city’s
development, including organizing pre-officer election activities and
workshops for candidates to discuss issues that will face the interim
council. Resource partners, such as the Association of Washington
Cities (AWC), MRSC, and neighboring cities can also provide
information and assistance.
Elections of elected officials: 111
o The primary election will be held at the next special election
following the election for incorporation
o Following the primary election at the next special election date,
an election is held to fill elective positions per statutory
requirements.112
The interim period is the time between when the newly elected
officials are elected and the official date of incorporation. During this
111 Per the requirements on scheduling special elections, the election on the question
of incorporation may take place on one of four dates: 2nd Tuesday in February, 4th
Tuesday in April, 1st Tuesday in August (primary election), 1st Tuesday after the
1st Monday in November (general election). (RCW 29A.04.330). This date impacts
the official date of incorporation, which has a statutory deadline following the
election, and also has implications on the availability of resources and services
during the city’s first year of incorporation
112 RCW 35.02.086, 29A.52.355, 35.02.110, 29A.04.330, RCW 35.02.125
INCORPORATION STUDY FOR PARKLAND, PAGE 138
SPANAWAY, MIDLAND, & FREDERICKSON MAY 11, 2023
time, the interim city council has statutory authorizations and can
work to plan and implement the community’s transition to a city.113
The official date of incorporation is set and specified in a resolution
adopted by the City Council. The official date of incorporation may be
anywhere between 180 and 360 days after the date of the
incorporation election.114
Interim Period
Responsibilities and Powers
During the interim period, the elected officials are authorized to:
Adopt ordinances, contracts, SEPA policies, property tax levy,
development moratoria and budgets
Borrow based on issue tax or revenue anticipation notes, and from the
federal, state and other governments
Acquire city facilities
Hire staff
Submit ballot propositions to authorize taxes
Authorize an annexation of the city or town by a fire protection
district or library district115
According to the MRSC New City Guide, recommended actions for the
interim council include:
The highest and most immediate priority given to ensuring the
effective continuation of local public services
Deferring critical long-term decisions until competent, professional
legal and administrative advice is obtained
There are several laws to which the interim city council is subject, including
immunity for discretionary decisions, open public meetings and liability
insurance.116
Organizing City Government
To begin organizing the governmental framework, the newly elected interim
city council identifies a presiding officer and rules of procedure. Staff critical
to facilitating the city’s transition are hired. In the council-manager form of
government, this can include hiring the city manager, who if provided hiring
authority, can begin to fill out the city’s administrative infrastructure. Other
positions can be hired in this period, such as the city clerk,
113 RCW 35.02.130
114 RCW 35.02.130
115 RCW 35.02.130
116 RCW 35.02.130
INCORPORATION STUDY FOR PARKLAND, PAGE 139
SPANAWAY, MIDLAND, & FREDERICKSON MAY 11, 2023
treasurer/financial officer and city attorney. Related personnel policies are
addressed, such as the salary schedule, which can be set by ordinance or
follow RCW 35A.12.070; 35A.13.040.117
Financial Management
The city begins to establish financial management policies and practices,
including setting up an accounting system and funds to pay for expenses. To
help cover city costs, the interim city council can borrow funds through tax or
revenue anticipation notes and borrowing from other governmental
entities.118 Cities are authorized to levy various taxes, including retail sales
and use tax (RCW 82.14.030), property tax (RCW 35A.33.135; RCW
84.52.020) and real estate excise tax (RCW 82.45.035; ch. 82.46 RCW). For
more tax revenue programs, see Appendix M: Summary of Revenue
Resources Available for Local Governments.
Budget Process
The interim council adopts an interim budget for the interim period and a
second interim budget if the interim period extends into the next calendar
year. The Council must also adopt a first-year budget.119
Municipal Services
The interim city council must determine the services, level of services, and
service delivery methods for a variety of services to be provided initially, with
some considerations for future service provision. For example, the newly
incorporated community can continue contracts with the county for the
provision of police protection or establish a city police department. For an
overview of services and provider information before and after incorporation,
see the MRSC New City Guide, pages 35-38.120
Formal Incorporation Date
The official date of incorporation is a critical decision that impacts a city’s
first year of operations. The decision requires ensuring adequate time for
completing the interim period duties, in addition to considerations involving
maximizing the revenue flow to the new city as soon as possible and taking
advantage of county-provided services for as long as possible. For information
117 MSRC, New City Guide, 2013.
118 MSRC, New City Guide, 2013.
119 RCW 35.02.132
120 https://mrsc.org/getmedia/d4b59fb8-1a3c-47f1-a7f1-02ce2cd1b0ee/New-City-
Guide.pdf?ext=.pdf
INCORPORATION STUDY FOR PARKLAND, PAGE 140
SPANAWAY, MIDLAND, & FREDERICKSON MAY 11, 2023
on the timing of revenue sources available to new cities, see the MRSC New
City Guide, page 60.121
Schedule of Activities
Exhibit 86, adapted from the MRSC New City Guide, provides a suggested
schedule of municipal incorporation activities during the interim period.
There are a significant set of activities in the implementation of a newly
incorporated city.
Exhibit 86. MRSC Suggested Schedule of Interim Period Activities
Activities
By Whom When RCW Reference
(M=Mandatory Activities)
Organization and Procedures
Hold informational workshops to AWC, MRSC, Between nomination
address major transition activities Council (Mayor) or and election of
and provide information on Council (Mayor council or soon after
establishing city government Candidates), election of council
County, Transition
Group, Others
Hold a community event for Council (Mayor), Soon after election of 29A.04.133(3)
swearing-in of city council Public council 35A.29.090
members/mayor
Hold an initial council meeting Council (Mayor) As soon as possible Ch. 42.30
(informal) with notice to discuss: Ch. 42.32
- Day, time, and place of regular 35A.21.230
interim council meetings, and 35.02.120
future meeting schedule
- Interim publication and locations
for posting of notices, etc.
- Rules of procedure for council
meetings'
- Process/timeline for selecting an
interim city manager/administrator
- Select a temporary presiding
officer for the transition period
(council-manager city)
Use of loan executives while Council (Mayor) As soon as possible
searching for interim staff or
consultants
Adopt interim meeting place, Council As soon as possible 35.02.130
schedule, rules of procedure by
motion
(M) Provide for taking minutes and Council As soon as possible Ch. 35A.39
preserving records Ch. 42.32
Ch. 40.14
121 https://mrsc.org/getmedia/d4b59fb8-1a3c-47f1-a7f1-02ce2cd1b0ee/New-City-
Guide.pdf?ext=.pdf
INCORPORATION STUDY FOR PARKLAND, PAGE 141
SPANAWAY, MIDLAND, & FREDERICKSON MAY 11, 2023
Activities
By Whom When RCW Reference
(M=Mandatory Activities)
Adopt public disclosure Council (Mayor), As soon as possible Ch. 42.56
procedures Interim City
Manager or
Administrator,
Interim Staff
Study effect of alternative Loaned staff Before selecting
incorporation dates on revenue (finance person), official incorporation
collections, interim cash flow, and MRSC, AWC, State date
available funding Auditor's Office,
Dept. of Revenue
Finance: Borrowing of Money
Preparatory Work: Council (Mayor), As soon as possible 35.02.130
- Explore issuance of tax/revenue Interim City 35.02.135
anticipation notes and warrants Manager or 35.02.270
and their costs Administrator, 35A.11.030
- Explore option of borrowing from Loaned staff, 35A.40.090
municipal sales tax equalization Finance Director, 35A.21.150
account Bond Council 39.50.020
- Explore possible options of 39.36.020
borrowing from other units of Wash. Const. Art.
government VII Sec. 6
- Use cash flow projections to
determine amount to be
borrowed
- Explore future borrowing
capability
Organization and Procedures
(M) Give notice of special Interim staff (Clerk) 24 hours before 42.30.080
meetings and post and/or meeting 35A.12.160
otherwise publicize agendas 35.23.352(7)
(M) Select official newspaper Council (Mayor), As soon as possible 35.02.13035A.21.23
(some cities must use bid process) Loaned or interim 0
staff
Work with loaned executives on Council (Mayor) Continuous Ch. 39.34
critical transition activities
Place of Business
(M) Council (Mayor), As soon as possible
(1) Interim council meeting place Interim City
or city hall Manager or
(2) Mailing address or post office Administrator,
box number for the new city Loaned staff
(3) Installation of telephones and
publication of telephone numbers
(4) Computer equipment, network,
e-mail, internet
Personnel
INCORPORATION STUDY FOR PARKLAND, PAGE 142
SPANAWAY, MIDLAND, & FREDERICKSON MAY 11, 2023
Activities
By Whom When RCW Reference
(M=Mandatory Activities)
Contract for outside legal, Council (Mayor), As soon as possible Ch. 39.34
financial, and other support Interim City 35.02.130
services, and/or appoint interim in- Manager or Ch. 35A.13
house staff: Administrator, 35A.21.130
- Personnel director Loaned staff,
- City attorney or contract for legal
services
- Finance director or contract for
financial management services
- City clerk
- Planning director
- Auditing officer
Personnel policies and Council (Mayor), As soon as possible Ch. 42.20
procedures: Interim City Ch. 42.23
- Preliminary benefit plan Manager or Ch. 42.24
- Preliminary personnel policies Administrator, Ch. 35A.42
- Travel reimbursement policy Loaned or interim Ch. 41.08
- Moving expense policy staff Ch. 41.12
Ch. 35A.41
Ch. 35A.42
Ch. 35A.49
Finance: Borrowing of Money
Authorize borrowing funds by tax Council (Mayor), As needed, probably 35.02.130
or revenue anticipation Finance Director, as soon as possible
notes/warrants and/or by loan Bond Counsel, City
from municipal sales tax Attorney
equalization account, as an
interim measure
Authorize borrowing from other Council (Mayor), As needed 35.02.130
governmental units (state, county, Finance Director, 35.02.270
and/or another city) City Attorney
(M) Establish sales tax account by Finance Director, As soon as possible 35A.11.030
applying for tax ID number Loaned or interim Ch.82.14
staff 35A.82.010
Ch.84.52
Ch.35A.84
Ch.35A.33
Determine process for establishing Finance Director, Before incorporation
accounts of state-shared revenues Loaned or interim date
staff
(M) Determine timing and Finance Director,
procedures for property tax levy Loaned or interim
and collection staff, Interim City
Manager or
Administrator
INCORPORATION STUDY FOR PARKLAND, PAGE 143
SPANAWAY, MIDLAND, & FREDERICKSON MAY 11, 2023
Activities
By Whom When RCW Reference
(M=Mandatory Activities)
Summarize possible options for tax Finance Director, Ch. 35A.82
and revenue collections Loaned or interim
staff, Interim City
Manager or
Administrator
Prepare proposed tax and fee City Attorney, As soon as possible; 75 Ch. 35A.33 and
ordinances for enacting: Council (Mayor), days prior to effective 35A.84
- Property tax levy Interim Finance date (sales tax) Ch. 82.14
- Local Share Sales and Use Tax Director 82.29A.030-040
- Real Estate Excise Tax 82.02.020
- Gambling Tax 19.27.100
- Building Permit Fees 82.46.010
- Business Licenses 9.46.110
- Admissions Tax 67.28.180
- Land Use and Development Fees 35.21.706
- Hotel-Motel Tax 35.21.710
- Business and Occupation Tax
- Utility Tax
(M) Adopt tax and fee ordinances Council At least 6 weeks 35.02.130
to take effect on date of before incorporation
incorporation or later date if date (sales tax
required by tax ordinance)
(M) Notify appropriate state Interim City As soon as possible 35.02.260
agencies re: state-shared taxes Manager or
imposed. Contact DCD for Administrator,
assistance Loaned or interim
staff
Finance: Insurance Provision
Determine risk exposures, and Interim Finance As soon as possible 35A.11.020
property, casualty, and liability Director, Interim City 35A.31.220
insurance requirements. Discuss Manager or 35.21.205
with county risk manager or other Administrator, City 36.16.138
appropriate county official Attorney
regarding any known risks.
Options:
- Contract with a broker to
determine and recommend
insurance needs
- Study possibility of joining existing
pools: AWC-Risk Management
Service Agency or Washington
cities Insurance Authority
- Self-insure
- Purchase insurance and self-
insure depending on types of risks
Finance: Expenditures, Disbursements, Accounting, and Financial Reporting
INCORPORATION STUDY FOR PARKLAND, PAGE 144
SPANAWAY, MIDLAND, & FREDERICKSON MAY 11, 2023
Activities
By Whom When RCW Reference
(M=Mandatory Activities)
(M) Establish accounts by State Auditor’s As soon as possible 35A.11.020
applying for IRS Tax ID number, Office, Finance 35A.31.220
Labor and Industries ID number, Director 35.21.205
Unemployment Tax ID number, 36.16.138
and Retirement System number
(M) Create necessary interim Council (Mayor), As needed 35.02.130
funds including a current expense Finance Director Ch. 35A.37
fund, street fund, and others as Ch. 43.09 and
required; prepare appropriate 43.09.210
ordinances to establish permanent
funds to take effect on official
incorporation date
Determine interim policies to be Council (Mayor), As needed Ch. 42.24
observed on petty cash, travel Finance Director
advance, payroll, and voucher
approval, etc.
(M) Establish an accounting and Finance Director, As needed Ch. 43.09Ch. 39.34
financial reporting system for the Loaned or interim
city in conformity with State staff
Auditor’s Office requirements. This
may initially involve contracting
with other local or state
governmental units for interim
services.
Consult with State Auditor’s Office Council (Mayor), As soon as possible 35.02.132
on interim budget development, Finance Director, 35A.21.170
budget timelines, reporting Interim City 35A.33.110
requirements, ordinances and Manager or 43.09.190-.285
resolutions needed, and audit Administrator
requirements.
Finance: Interim Budget
(M) Develop budgets for interim Council (Mayor), As soon as possible 35A.21.170
period(s) Finance Director, Ch. 35A.33
Interim City Ch. 35A.34
Manager or
Administrator,
Loaned or interim
staff, State Auditor's
Office
Finance: First-Year Budget
(M) Prepare and make public Council (Mayor), At least 60 days 35.02.132
preliminary budget, including Finance Director, before official
budget message Interim City incorporation date
Manager or
Administrator,
Loaned or interim
staff
INCORPORATION STUDY FOR PARKLAND, PAGE 145
SPANAWAY, MIDLAND, & FREDERICKSON MAY 11, 2023
Activities
By Whom When RCW Reference
(M=Mandatory Activities)
(M) Hold budget hearing Council At least 20 days 35.02.132
before official
incorporation date
(M) Adopt first-year budget Council Before official 35.02.132
incorporation date
Contracted Services
New city may need to contract Council (Mayor), As soon as possible 35.02.130
with county and special purpose Interim City 35.02.210
districts for continuation of existing Manager or 35.02.220
services while getting organized. Administrator, 35.02.225
Finance Director, Ch. 35A.56
Directors, Loaned or
interim staff
(M) Determine post-incorporation Council (Mayor), As soon as possible 35A.13.080(2)
service responsibilities and Interim Staff, Interim Ch. 3.50
research alternative service City Manager or 70.48.090
delivery methods and costs: Administrator, Ch. 35.88
- Law enforcement Finance Director 35A.67.010
- Fire and emergency services Ch. 27.12
- Water/sewer Ch. 35.92
- Court and jail services
- Street maintenance, repair, and
construction
- Permit processing and building
inspection services
- Library services
- Animal control
- Surface water management
- Parks and recreation
Determine issues and citizens’
concerns to be considered by the
city during negotiations with other
local government agencies.
Negotiate contracts Interim City Before incorporation 35.02.130
Manager or date
Administrator,
Council, City
Attorney
Land Use/Planning/Community Development
(M) Adopt SEPA policies and Council, Loaned or As soon as possible 35.02.130
procedures interim staff, City Ch. 43.21C
Attorney Wash. Admin
Code (WAC)
Ch. 197-11
(M) Temporary or permanent city Council, Interim City As soon as possible Art. XI, Sec. 11
controls should be adopted prior Manager or Wash. State Const.
to incorporation date, to take Administrator, City 35.02.130
effect immediately (moratoria) or Attorney, Loaned 35.02.137
upon incorporation. They include staff Ch. 35A.63
INCORPORATION STUDY FOR PARKLAND, PAGE 146
SPANAWAY, MIDLAND, & FREDERICKSON MAY 11, 2023
Activities
By Whom When RCW Reference
(M=Mandatory Activities)
adoption of comp. plan, zoning Ch. 35A.11
ordinance, zoning map, Ch. 58.17
subdivision, PUD and other land 35A.12.140
use regulations: creation of city Ch. 36.70A
planning agency
- Adopt County controls by
reference or
- Create own or copy from other
cities with or without modifications
Hire an interim community Council (Mayor), Before incorporation
development/planning director Interim City date
and/or contract with adjacent Manager or
jurisdiction or private entity for Administrator
temporary consulting services
(M) Adopt own Shoreline Master Council, Interim City Before incorporation Ch. 90.58
Program or copy another county Manager or date WAC Ch. 173-26
or city’s shoreline master Administrator, City and 173-27
programs, to take effect on official Attorney, Loaned
Date of incorporation staff
Law Enforcement
(M) Consider post-incorporation Interim City As soon as possible
options: Manager or
- Contract with other law Administrator,
enforcement agencies under Council (Mayor),
direction of city department head Loaned consultants
- Establish own police department from other
- Accept criminal/traffic code jurisdictions
including Model Traffic Ordinance
- Contract for jail services with
county or neighboring jurisdictions
- Dispatch services
Court Services
(M) Consider post-incorporation Council (Mayor), As soon as possible Ch. 3.50
options: City Attorney 39.34.180
- Direct filing with district court, or
- Creation of own municipal court
Fire Services
(M) Consider post-incorporation Council (Mayor), As soon as possible 35.02.130
options: Interim City 35A.14.380
- Pass resolution precluding Manager or 35.02.190
automatic annexation to district(s) Administrator 35A.14.400
If no automatic annexation: 35.02.200
- Contract with a district to operate 35A.14.500
a municipal department using the 35.02.205
newly acquired property that has 35.02.210
come into the possession of the 35.02.202
city as a result of incorporation 52.04.161
- Contract with another district
- Establish own fire department
INCORPORATION STUDY FOR PARKLAND, PAGE 147
SPANAWAY, MIDLAND, & FREDERICKSON MAY 11, 2023
Activities
By Whom When RCW Reference
(M=Mandatory Activities)
Organization and Procedures
(M) Adopt ordinances/resolutions Council As soon as possible 35.02.13035A.12.12
on council meetings, including 035A.13.17035A.13
public notice procedures, and .190-
rules for council meetings, to take .20035A.12.150-
effect on official date of .16035A.21.130
incorporation, but also to be
followed (pursuant to motion)
during the interim period
(M) Establish office hours for city Council After city offices 35A.21.070
offices. established 42.56.090
(M) Appoint agent to receive Council By incorporation date 4.96.020
claims for damages
Personnel
Begin recruiting permanent city Council (Mayor), As soon as possible 35A.13.010/050
manager (council-manager city) Interim City
Manager or
Administrator,
Personnel Director
(M) Adopt a salary schedule for Council As soon as possible 35A.13.040
city officials (other than council) 35A.33.105
and employees by ordinance to 35.21.085 (1)
take effect on official 35.21.086
incorporation date, and to be
followed in the interim.
Consider employee benefit and Council (Mayor), As soon as possible Ch. 41.40
retirement benefit plans. (Join Interim City Ch. 35A.41
Washington Public Employees' Manager or 35.21.390
Retirement System or adopt other Administrator,
legally available plan?) Consider Personnel Director
creation of a Municipal
Employees' Benefits Trust or
alternative benefit plan.
Investigate requirements for LEOFF Interim City Ch. 41.26
system coverage for police and Manager or
fire departments, if establish own. Administrator,
Loaned or interim
staff
Finance: Banking Services
Open a temporary bank account Council (Mayor), As soon as possible 35.02.130
for the city. Identify authorized city Interim City
signatories. Manager or
Administrator,
Finance Director
INCORPORATION STUDY FOR PARKLAND, PAGE 148
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Activities
By Whom When RCW Reference
(M=Mandatory Activities)
Request proposals for banking Finance Director, As soon as possible 35.02.130
services, select a bank and Loaned or Interim
contract for interim services and staff
develop proposed contract for
banking services
(M) Adopt resolution authorizing Council As soon as possible
contract for banking services to
take effect on official date of
incorporation.
Finance: Borrowing of Money
- Prepare a resolution Council (Mayor), As soon as possible 35.02.130
- Prepare official statement Interim City
- Authorize issuance of tax or Manager or
revenue anticipation notes or Administrator,
warrants Finance Director,
Bond Counsel,
Finance Adviser, City
Attorney
Authorize interfund borrowing for Council As needed 43.09.210
temporary cash needs
Franchises
(M) Grant new franchises for Interim City Before official 35.02.160
seven-year period or remaining Manager, Council incorporation date
term of original franchise, (Mayor), Finance
whichever is shorter. Potential Director, City
franchises include:- Telephone Attorney
company- Cable TV- Power-
Garbage
Organization and Procedures
Hold a one-or two-day retreat Council (Mayor), As soon as possible Ch. 42.30 and Ch.
(public meeting) within the city to: Interim Manager, 42.32
- Clarify roles/responsibilities of city Selected advisers Ch. 35A.13
manager and city council or 35A.13.080
mayor and council 35A.13.100-.140
- Discuss the city's, mission, goals, 35A.11.020
and objectives 35A.11.030
- Discuss contracting for
continuation of services
- Discuss budget process and
timelines
- Discuss finances including
borrowing of money
(M) Set official incorporation date Council Ideally, at least 2 35.02.130
by resolution months before date
chosen
(M) Notify OFM of population Mayor, Interim At least 30 days 43.62.030
information Manager or before incorporation
Administrator date
INCORPORATION STUDY FOR PARKLAND, PAGE 149
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Activities
By Whom When RCW Reference
(M=Mandatory Activities)
Provide for creation of offices, Council (Mayor) Before incorporation 35A.21.030
departments, boards, and date 35A.11.020
commissions, and define their Ch. 35A.63
purposes, composition, duties, and Ch. 35A.13
procedures, to be effective on 35A.13.090
official date of incorporation
Adopt the city’s mission statement Council (Mayor) Before incorporation
- Interim (to guide financial/action date
plan development)
- Final
Source: MRSC New City Guide, 2013.
INCORPORATION STUDY FOR PARKLAND, PAGE 150
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A P P E N D I X M: S U M M A R Y O F R E V E N U E R E S O U R C E S A V A I L A B L E
FOR LOCAL GOVERNMENTS
This appendix captures the types of revenue resources available to local
governments in Washington, along with the capacity, structure and
restrictions for each source. A significant portion of this information was
compiled directly from Municipal Research and Services Center of
Washington (MRSC) publications, including:
Revenue Guide for Washington Counties, December 2022
Revenue Guide for Washington Cities and Towns, December 2022
Data and information from MRSC is reproduced or summarized for easy
reference for readers. Local data based on specific information from Pierce
County and the Study Area is also included.
Overview of Revenue Sources
This section highlights the type of resources available to local governments in
Washington state, along with their structure. The following section provides
more details on revenue resources by type.
The types of revenue resources available to counties in Washington
include property taxes; sales and use taxes; lodging taxes (hotel/motel
tax); real estate excise taxes (REET); other excise taxes; state-shared
and federal revenues; departmental fees, charges, and
reimbursements; other revenue sources; and special taxing districts.122
The types of revenue resources available to cities and towns in
Washington State include property taxes, sales and use tax, business
and utility taxes and fees, lodging taxes (hotel/motel tax), real estate
excise taxes (REET), other excise taxes, state-shared revenues, other
revenue sources, and special taxing districts.
There are also several types of bonds that serve as long-term debt
funding mechanisms for local governments.123
Washington State Taxation
There are two basic categories of taxes in the state – property taxes and
excise taxes. Property taxes are the oldest form and largest single revenue
source for many local governments. Excise taxes have the broadest
categories, with sales tax being the most significant.
Restrictions have been imposed on property taxes over time. State taxing
power has changed during this time through the imposition of a variety of
122 Revenue Guide for Washington Counties, MSRC, December 2022.
123 Revenue Guide for Washington Cities and Towns, MSRC, December 2022.
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excise taxes allowing local jurisdictions to diversify their revenue streams.
Early occupation taxes were levied and expanded to impose retail sales tax
and new business and occupation taxes by 1935. The state granted authority
to cities and counties to impose a sales and use tax of .5% for general local
government purposes in 1970, resulting in the combined 1% still in place
today.124
How Taxes are Generated and Calculated
Property Taxes and Sales and Use Taxes
Washington state has a budget-based property tax structure. Within this
framework, as part of their annual budget process, local governments and
other taxing districts establish the total dollar amount of property tax
revenue they aim to generate for the year and then decide the levy rate that
applies to property owners based on the total assessed valuation (AV) of all
properties.125 Properties are taxed by their tax code area, which includes
combinations of overlapping taxing districts. Taxing districts are government
units with property tax authority. There are limits to the aggregate levy rate
within a tax code area.126 Jurisdictions can also use pro-rationing, which
establishes levy hierarchies, or buy-down agreements, paying another taxing
district to reduce its levy, if they exceed or will exceed the levy limits.
The State of Washington imposes a 6.5% sales tax within the state and cities,
while counties and other taxing districts can impose local sales taxes on top
of the state rate. For many cities and towns, sales taxes represent the first or
second largest revenue source within their general fund. Given the rise in
online shopping, in 2008 the state of Washington adopted a destination-based
sales tax system known as the “streamlined sales tax” in which the location
where sales tax is calculated is considered to be the destination.127
Property taxes and sales taxes are imposed differently which impacts
revenue streams. Property taxes are based upon changing property values
124 Revenue Guide for Washington Counties, MSRC, December 2022.
125 Property taxes are assessed and collected at the county level. For setting property
taxes at the sub-county level, cities and other taxing districts first establish the total
dollar amount of property tax revenue they aim to generate, and the county assessor
calculates the levy rate based on the total AV of all properties.
126 Article 7, section 2 of the Washington State Constitution limits the total regular
property tax rate on any individual property to 1% of the property’s true and fair
value, which is referred to as the $10 limit as the levy rate is expressed as a dollar
amount per $1,000 assessed value and since 1% of a property’s value is equivalent to
$10.00 per $1,000 assessed value. Secondly, by statute, the aggregate regular levy
rate for most local governments combined may not exceed $5.90 statutory limit per
$1,000 AV within any individual Tax Code Area.
127 Revenue Guide for Washington Counties, MSRC, December 2022.
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and must be re-calculated and re-imposed every year, while excise taxes
remain in effect on all taxable events into the future upon adoption. Sales
taxes can be especially advantageous for cities with significant shopping,
commercial centers, and tourist attractions; however, they are also sensitive
to economic conditions and have a disproportionate burden on households
with lower incomes.128
Excise Taxes
Any city or town may impose a variety of taxes and fees upon local
businesses and utility companies, including business and occupation (B&O)
taxes, utility taxes and business license fees. B&O taxes and utility taxes are
major revenue sources for a number of cities. B&O taxes are significantly less
common than utility taxes. These are two of the four main revenue sources
provided to cities by the state legislature (the other two being property and
sales taxes).129
Additional excise taxes include:
Lodging Tax – Any county, most cities, and certain public facilities
have the authority to levy lodging taxes. There are two tax options, a
basic and additional lodging tax and these may be imposed in addition
to tourism promotion area fees.130
Real Estate Excise Taxes (REET) – The State of Washington levies
a real estate excise tax (REET) upon all sales of real estate. The tax
rate used to be a flat 1.28%, but effective January 1, 2020, the state
implemented a graduated tax scale based on the selling price of the
property, with the sale price thresholds adjusted on a four-year
schedule. A portion of the proceeds are deposited into the public works
assistance account for loans and grants to local governments for public
works projects; the city-county assistance account for distribution to
qualifying cities and counties; and the education legacy trust account
for the support of the common schools, expanding higher education
and other educational improvement efforts. Counties can impose local
real estate taxes on top of the state rate.131 REET revenues can be
somewhat volatile since they depend on both the volume of real estate
sales and the sale value of the properties sold.132
128 Revenue Guide for Washington Counties, MSRC, December 2022.
129 Revenue Guide for Washington Cities and Towns, MSRC, December 2022.
130 Revenue Guide for Washington Counties, MSRC, December 2022.
131 However, the rate that the county can levy and the way it can use the revenues
depends on the county’s population and whether or not it is planning under the
GMA.
132 Revenue Guide for Washington Counties, MSRC, December 2022.
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Counties and cities can impose a range of other excise taxes from
event admissions tax to commercial parking taxes.
Intergovernmental Revenues
The state and federal governments also provide intergovernmental sources of
funding for local government programs. State shared revenues are generally
revenues distributed to cities, towns and counties by a formula set in state
statute or appropriated by the legislature through the state budget process.
These revenue streams depend on the federal and state legislative process,
the economy and political factors.133
Special Taxing Districts
Counties and cities have the option to form special taxing districts to
generate additional revenue or shift funding sources. For most of these
districts, the county legislative body serves as the governing body, though
some may be governed by elected commissioners or by interlocal
agreement.134 Cities have the option to form certain special taxing districts,
generally corresponding with the city’s boundaries. In addition, cities can
annex into existing library districts and fire protection districts or join with
other fire protection jurisdictions to form regional fire authorities, all of
which have revenue impacts especially in property tax levy rates. Some of the
special taxing districts may be organized as separate municipal entities to a
separate governmental entity or may be structured as an extension of the
city’s existing operations.135
Other Revenue Sources
Counties can establish other revenue resources, including departmental fees,
charges and reimbursements, particularly as charges for services by county
departments. Some fees may be retained by the county, while others are
transmitted to the state or distributed among all counties. Impact fees are a
fee that can be imposed by both counties and cities, authorized for
jurisdictions that are fully planning under the Growth Management Act, onto
developers to mitigate the impacts of facilities due to increased demand from
new development or growth.136
Local governments can also secure resources by borrowing money through a
variety of mechanisms for operations and capital investments. The
mechanisms are either short or long-term and can be repaid through tax
133 Revenue Guide for Washington Counties, MSRC, December 2022.
134 Revenue Guide for Washington Counties, MSRC, December 2022.
135 Revenue Guide for Washington Cities and Towns, MSRC, December 2022.
136 Revenue Guide for Washington Counties, MSRC, December 2022.
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revenues, user fees or special assessments.137 Per the MRSC article updated
in 2022 on “Types of Municipal Debt,” there are several bond types that serve
as long-term debt funding mechanisms for local governments for financing
purposes.
City Revenue Sources and Types
This section provides detailed information on the types and structures of
revenue resources available to local governments in the State of Washington.
The following information was directly sourced from two MSRC publications,
the Revenue Guide for Washington Counties and the Revenue Guide for
Washington Cities and Towns and included in this appendix for the sake of
the reader.138
Property Tax
Regular Levy
Primary source of property tax revenues for cities – revenues are
unrestricted and may generally be used for any lawful governmental
purpose.
Maximum levy rate varies between $1.60 and $3.825 depending on
whether city is annexed to a fire district/library district, participates
in a regional fire authority, or has a fire pension fund.
Affordable Housing Levy
Property tax – additional levy up to $0.50 per $1,000 assessed
valuation
Revenues restricted to finance affordable housing for “low-income” and
“very low-income” households.
Requires simple majority voter approval.
Subject to $10 constitutional limit but not $5.90 limit.
Before imposing the levy, the city must declare the existence of an
emergency with respect to the availability of affordable housing for
low-income or very low-income households within its jurisdiction and
adopt an affordable housing finance plan for the expenditure of the
levy funds to be raised.
137 Long-term debt is a commonly used means of financing large capital assets and
short-term debt can be used to cover a temporary cash flow deficit or provide for an
interim method of financing until long-term borrowing has been secured. There are
three types of debt that can be issued by local government: General obligation(GO),
which is secured by the full faith and credit of the local government issuing the debt
and relies on taxation for repayment; Revenue debt, is guaranteed by the specific
revenues generated by the issuer; and Special assessment debt – repaid from
assessments against those who directly benefit from the project the funds have been
used to finance.
138 See “Revenue Guide for Washington Cities and Towns”, MSRC, December 2022.
And “Revenue Guide for Washington Counties”, MSRC, December 2022.
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Cultural Access Program Levy
Property tax – additional levy with maximum rate based on retail
sales
Revenues are restricted and may only be used for specified cultural
purposes
Subject to $5.90 limitation and $10 constitutional limit
Requires voter approval
Emergency Medical Services (EMS) Levy
Property tax – additional levy up to $0.50 per $1,000 assessed
valuation
Revenues are restricted to the provision of emergency medical care or
services
May be imposed for six years, ten years, or permanently
Requires voter approval
Subject to $10 constitutional limit but not $5.90 limit
Excess Levies (Operations & Maintenance)
Property tax – additional levy with no specific levy rate cap
Revenues may be used for any lawful governmental purpose, but must
be spent in accordance with the purpose(s) specified in the ballot
measure
Requires voter approval
General Obligation Bond Excess Levies (Capital Purposes)
Property tax – excess levy to repay unlimited tax general obligation
(G.O.) bonds
Revenues are restricted to capital purposes
Requires voter approval
Refunds and Refund Levies
Taxing districts may increase one or more of their levies to pay for any
property tax administrative refunds or refunds due to judgments.
Refund levies are not subject to the 1% annual levy lid, but may not
exceed the district’s normal statutory maximum levy rates
Does not require voter approval
Retail Sales and Use Tax
“Basic” Sales Tax First Half-Cent
Sales tax of 0.5% - revenues are unrestricted and may be used for any
lawful governmental purpose
Currently imposed by all counties
Combined city/county rate may not exceed 0.5%. Revenue shared with
county.
Affordable Housing Sales Tax Credit (HB 1406)
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Credit against 6.5% state sales tax. Credit is either 0.0073% or
0.0146% depending on whether city had a “qualifying local tax” in
place by July 28, 2020.
Had to be adopted no later than July 27, 2020; expires after 20 years
Revenues are restricted and must be used for affordable and
supportive housing. Cities under 100,000 population may also use
revenues for low-income rental assistance. Cities and counties may
pool resources.
Criminal Justice Sales Tax
Sales tax of 0.1% - revenues are restricted and must be used for
criminal justice
May only be imposed by county, but revenue shared with cities
Does not require voter approval
Cultural Access Program Sales Tax
Sales tax up to 0.1% - revenues are restricted and must be used to
benefit or expand access to nonprofit cultural organizations
Maximum duration of seven years; may be renewed for additional
seven-year periods
May be imposed by any city or town
Requires voter approval
Housing & Related Services Sales Tax
Sales tax up to 0.1% - revenues are restricted and must be used for
affordable housing, behavioral health, and related services.
May be imposed by any city or town as long as county has not imposed
it first.
May be approved by voters or legislative body
Mental Health & Chemical Dependency Sales Tax
Sales tax of 0.1% - revenues are restricted to and must be used for
mental health and drug treatment purposes
Primarily a county revenue source; also adopted by Tacoma but may
no longer be adopted by any other cities
Public Safety Sales Tax
Sales tax up to 0.1% - revenues are partially restricted; one-third must
be used for criminal justice or fire protection
May be imposed by any city or town, but only if county has not
previously imposed a 0.3% public safety sales tax
Revenue shared with county
Motor vehicle sales and first 36 months of motor vehicle leases are
exempt
Requires voter approval
Transit Sales Tax
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Sales taxes up to 0.9% for transit and 1.0% for high-capacity transit –
revenues are restricted and must be used for transit
Requires voter approval
Transportation Benefit District Sales Tax
Sales tax up to 0.3% - revenues are restricted and must be used for
transportation
May be imposed by any city or town that has established a
transportation benefit district
Maximum duration of 10 years unless used for repayment of debt; may
be renewed
Up to 0.1% may generally be approved by legislative body; beyond that
requires voter approval
There are no revenue-sharing provisions. The TBD (or city, if the city
has “assumed” the TBD) retains 100% of the revenues, minus a 1%
admin fee.
Business and Utility Taxes and Fees
Business & Occupation (B&O) Taxes
Cities may impose a B&O tax for revenue purposes upon those
conducting business within their jurisdiction, in addition to any state
business and occupation tax
Revenues are unrestricted and may be used for any lawful
governmental purpose
Rates must be the same within a single business class (manufacturing,
retail, etc.) but may vary between classes
Imposition of tax generally does not require a voter approval, but may
be subject to referendum
Cities thinking of levying a local B&O tax should consider whether
they have the staff time and expertise necessary to administer this
tax. These taxes help fund general governmental services that benefit
local businesses, but they are unpopular with businesses.
Utility Taxes
Any city may impose a tax on the income of utility companies
Revenues are unrestricted and may be used for any lawful
governmental purpose
Maximum tax rate may not exceed 6% for electric, gas, steam and
telephone services unless approved by voters
No limitation on the tax rate for water, sewer, solid waste or
stormwater utilities
Internet and satellite TV may not be taxed; cable TV has special
provisions
Brokered Natural Gas Tax
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Any city that has a natural gas utility tax may impose an equivalent
“use tax” upon brokered natural gas sales that are otherwise not
subject to the utility tax
Use tax rate must be equal to the natural gas utility tax rate
Revenues are unrestricted
General Business License Fee
Cities may require individuals or businesses conducting business
within their jurisdiction to obtain a local business license
Revenues are used to recoup administrative costs
Regulatory Business License Fee
Cities may require certain classes of business that need additional
regulation and oversight to obtain an additional regulatory business
license, in addition to the general business license.
Revenue-Generating Business License Fees
Some cities impose business license fees on a sliding scale to generate
revenue.
Revenues are unrestricted and may be used for any lawful
governmental purpose.
Fees may be based on number of employees, type of business, square
footage and other criteria
Lodging (Hotel/Motel) Tax
Most cities or towns may impose a lodging tax up to 5% of which:
o 2% is a credit against the state sales tax, which is taken as a
credit against the 6.5% state sales tax
o 2% is in addition to the sales tax rate, which is not a credit to
the state tax rate and results in a tax increase for the lodging
patron
A few jurisdictions have been grandfathered in with varying rates.
Revenues are restricted and must generally be used for tourism
activities or tourism-related facilities
May also be used to repay debt for affordable workforce housing
within one-half mile of a transit station
Cities of 5,000 or more must establish a lodging tax advisory
committee (LTAC) to review funding applications and recommend
awards
Does not require voter approval
Real Estate Excise Tax (REET)
Real Estate Excise Tax (REET) 1 – The “First Quarter Percent”
Any city or town may impose a 0.25% excise tax upon all real estate
sales
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Revenues are restricted and may only be used for certain capital
purposes and housing relocation assistance, depending on the city’s
population and whether it fully plans under GMA.139
May also be used for limited capital facility maintenance, with
additional reporting requirements
Does not require voter approval
REET 2 – The “Second Quarter Percent”
Any city or town that is fully planning under GMA may impose an
additional 0.25% excise tax upon all real estate sales, in addition to
the tax imposed under REET 1.
Revenues are restricted and may only be used for certain
transportation, water, stormwater, sewer and park capital purposes.140
May also be used, with additional reporting requirements, for limited
capital facility maintenance, REET 1 capital projects, affordable
housing and homelessness (through January 1, 2026 only)
Does not require voter approval for cities required to plan under GMA,
but does require voter approval for cities voluntarily planning under
GMA
REET In Lieu of “Second Half” Sales Tax
Any city or town that has not imposed the “second half” sales tax may
impose an additional 0.5% excise tax upon all real estate sales
Revenues are unrestricted and may be used for any lawful government
purpose
139 Cities with a population of more than 5,000 that are fully planning under GMA
must spend the REET 1 revenues on “capital projects” that are listed in the capital
facilities plan (CFP) element of their comprehensive plan. Funds may also be spent
on housing relocation assistance and for the maintenance of capital facilities. Cities
that are not required to fully plan under GMA, or that are fully planning under
GMA and have a population of 5,000 or less must use REET 1 funds for any capital
purpose identified in a capital improvement plan and local capital improvements,
including local improvements that can be funded through a local improvement
district. Capital projects not listed in the local improvement statute are also
permitted uses as long as they are included in the city’s capital improvement plan.
Any city or town, regardless of its population or whether it fully plans under GMA,
may use up to $100,000 or 25% of its available REET 1 funds but not to exceed $1
million per year for the maintenance of capital projects.
140 REET 2 revenues are restricted and may only be used for financing “capital
projects” specified in the capital facilities plan element of the city’s comprehensive
land use plan. The definition of “capital project” for REET 2 is more restrictive than
it is in the REET 1 statute. REET 2 funds are more specifically directed to
infrastructure and parks capital projects. Any city may use up to $100,000 or 25% of
its available REET 2 funds but not to exceed $1 million per year for the maintenance
of REET 2 capital projects and for the planning, acquisition, construction,
reconstruction, repair, replacement, rehabilitation, improvement or maintenance of
REET 1 capital projects.
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Almost all cities have imposed the “second half” sales tax, which will
likely generate more revenue
Does not require voter approval but is subject to possible referendum
Other Excise Taxes
Admission Tax
Any city may impose an admission tax up to 5% of the admission
charge for various events and facilities
Revenues may generally be used for any lawful government purpose
Does not require voter approval
Border Area Fuel Tax
Any city within ten miles of a Canadian border crossing, or any
transportation benefit district encompassing a Canadian border
crossing, may impose a gas tax up to two cents per gallon, adjusted for
inflation
Revenues are restricted and must be used for street maintenance and
construction
Requires voter approval
Commercial Parking Tax
Any city may impose a tax on commercial parking businesses
Revenues are restricted and must be used for transportation purposes
Does not require voter approval but is subject to possible referendum
Gambling Tax
Any city or town may tax gambling activities within its jurisdiction
Maximum tax rates depend upon type of gambling activity
Revenues are restricted and must be used for public safety proposes
Does not require voter approval
Leasehold Excise Tax
Any city or town may levy an excise tax up to 4% on most leases of
tax-exempt properties.
Tax is credited against state and county leasehold excise taxes
Revenues are unrestricted
Does not require voter approval
Local Household Tax
Excise tax of up to $1.00 per month per household; may not be
imposed concurrently with transit sales tax
Revenues must be used for public transportation improvements
Does not require voter approval but may be subject to referendum
Local Option Gas Tax
Counties may impose a local option gas tax of 10% of the state gas tax
rate
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Revenues are shared with cities and must be used for transportation
purposes
Requires voter approval
Timber Excise Tax
Credit against state timber excise tax
May only be imposed by counties, which share the revenue with other
taxing districts (including some cities) based on timber sales, timber
assessed value and levy rates
State Shared and Federal Revenue
Cannabis Excise Tax
A portion of the state’s cannabis excise tax is distributed to cities and
counties depending on their cannabis policies.
Two separate components:
o Per capita share distributed to all cities and counties that do
not prohibit cannabis businesses
o Retail share distributed to cities and counties where cannabis
retailers are located, in proportion to statewide cannabis
revenues
No clear guidance on use of revenues, but stated intent of I-502 is that
cannabis legalization will [allow] law enforcement resources to be
focused on violent and property crimes [and generate] new state and
local tax revenue for education, health care, research and substance
abuse prevention.
Capron Refunds
Island counties and cities receive funds of state gas taxes and motor
vehicle license fees to compensate for their lack of state highways and
state highway investment
Only distributed to San Juan and Island counties and their cities.
Liquor Distributions
Distributed to all counties on a per capita basis
All counties receive two separate distributions, liquor profits and
liquor excise
Public Utility District (PUD) Privilege Tax
The state imposes a 2% excise tax, plus 0.02% per kilowatt-hour of
self-generated energy, on all public utility districts (PUDs) in lieu of
property taxes
Revenues are shared with counties, cities and towns
Revenues are unrestricted and may be used for any lawful government
purpose
City-County Assistance (ESSB 6050) Distribution
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Portion of the state real estate tax (REET) is shared with certain cities
that have relatively low per capita assessed values.
Originally intended to mitigate the loss of motor vehicle excise tax
(MVET) revenues following I-695 in 1999.
Distribution formula is complicated and depends upon population,
assessed value, sales tax receipts and historical budget distributions.
Revenues are unrestricted and may be used for any lawful
governmental purpose.
Because the city-county assistance program depends upon actual real
estate sales, this revenue source can be somewhat volatile during
economic downturns.
Criminal Justice Distribution
Five separate programs: high crime, population, special programs,
contracted services, violent crime
Fire Insurance Premium Tax
Distributed to all cities with a pre-LEOFF firefighters’ pension fund,
based on their proportionate number of paid firefighters.
Motor Vehicle Fuel Tax (MVFT)
Distributed to all cities and towns on a per capita basis.
Total distributions depend on amount of gas taxes collected statewide
Revenues are restricted and must be used for streets, roads and
highways
Cities must use at least 0.42% for pedestrian, equestrian or bicycle
trails, unless such amount would be $500 or less per year
Multimodal Funds and Increased MVFT
Distributed to all cities and towns on a per capita basis
Direct appropriations from the state transportation fund; do not
depend on actual fuel sales
Revenues are restricted: multimodal funds may be used for any
transportation purpose. Increased MVFT funds must be used for street
or highway purposes (including eligible pedestrian, equestrian or
bicycle trails).
Other Revenue Sources
Franchise Fees
Franchise agreements allow utility providers to install and maintain
equipment within county rights-of-way.
Franchise fees are generally limited to the recovery of administrative
costs. Cities may also impose franchise fees to recover administrative
costs on sewer and water.
Impact Fees – Growth Management Act (GMA)
INCORPORATION STUDY FOR PARKLAND, PAGE 163
SPANAWAY, MIDLAND, & FREDERICKSON MAY 11, 2023
Fee charged to developers to mitigate the impacts on infrastructure
and capital facilities because of increased demand resulting from new
development. Does not require voter approval.
Revenues are restricted and may only be used for streets, parks,
schools and fire protection. May only be imposed by counties planning
under the GMA. Must generally be expended within 10 years of
receipt.
Impact Fees – Local Transportation Act (LTA)
Fee charged to developers to mitigate the impacts on infrastructure
and capital facilities because of increased demand resulting from new
development. Does not require voter approval.
Revenues are restricted and may only be used for transportation. May
be imposed by any city, but typically impact fees are assessed under
the GMA rather than LTA.
Investments (Interest Earnings)
Cities and towns may invest excess funds not immediately needed for
operations
Interest earned on the investments may be used by the fund that was
invested, for purposes allowed within that fund.
Earnings may or may not be restricted, depending on the revenue
source
Parking Meters
Any city may impose parking meter fees.
Revenues may be used for administrative costs, parking studies and
acquisition and maintenance of off-street parking facilities.
Surplus Transfers from Utilities and Lids
In limited situations, cities may transfer surplus funds from municipal
utilities or a local improvement district (LID) guaranty fund into the
general fund.
Surplus transfers require financial analysis of both current and future
needs
Tourism Promotion Area Fees
Any city or town may form a tourism promotion area and impose
charges up to $2 per room per night. Effective June 11, 2020 to July 1,
2027 the city/town may impose an additional fee up to $3 per room per
night. Does not require voter approval, but requires support from local
lodging businesses and may be repealed if a majority of lodging
businesses submit a written petition.
Only applies to lodging businesses with 40 or more rooms. Revenues
must be used for tourism promotion to increase the number of tourists
to the area.
Traffic and Parking Fines
INCORPORATION STUDY FOR PARKLAND, PAGE 164
SPANAWAY, MIDLAND, & FREDERICKSON MAY 11, 2023
State Supreme Court establishes fines for traffic infractions, but
revenues are shared with city where infraction occurred
Cities can establish their own parking fines.
Revenues may generally be used for any lawful governmental purpose
Transportation Benefit District Vehicle License Fees
Any city that has established a transportation benefit district (TBD)
may impose a non-voted vehicle license fee up to $50 or a voted vehicle
license fee up to $100
Revenues must be used for specified transportation projects.
Utility Rates and Charges
Any city that has established a utility must set an appropriate rate to
recover cost.
Revenues must be used for specified utility purpose
Other City Fees and Charges
Animal licensing; concealed pistol license permits; fireworks retail and
display permits; Parks, recreation and cultural facilities and
programs; processing of development and building permit applications;
public records copying charges; street use permits
Special taxing districts
Metropolitan park district
Any city or town may form a metropolitan park district to manage,
control, improve, maintain or acquire park and recreation facilities.
The formation of an MPD requires voter approval. MPDs are funded
primarily by a regular property tax levy up to $0.75 per $1,000
assessed value.
Public facilities district
Most cities may establish a public facilities district (PFD) for the
purpose of constructing, operating and maintaining “regional centers,”
defined as a convention conference or special events center, or any
combination of facilities and related parking facilities, whose
construction or rehabilitation costs are at least $10 million including
debt service.
PFDs are funded primarily by sales tax, user fees and charges,
admission and parking taxes, general obligation bonds and revenue
bonds.
Regional fire authority
Any city may form a regional fire protection service authority with at
least one other “fire protection jurisdiction” within “reasonable
proximity.” Regional fire authorities are funded primarily by property
tax levies up to $1.50 per $1,000 assessed value, which will impact the
city’s general fund levy rate.
INCORPORATION STUDY FOR PARKLAND, PAGE 165
SPANAWAY, MIDLAND, & FREDERICKSON MAY 11, 2023
Transportation benefit district
A city may establish a TBD to generate revenue for specific
transportation projects. The two primary revenue sources for TBDs
are a voted sales tax of up to 0.2% with a limit of 10 years and a
vehicle license fee up to $50 (non-voted) or $100 (voted).
Special taxing districts within the Study Area
Bethel School district No. 403
Franklin Pierce School District No. 402
Puyallup School District No. 3
Pierce Conservation District
Pierce County Drainage District No. 14
Pierce County Fire Protection District No. 6 Central Pierce Fire and
Rescue
Pierce County Fire Protection District No. 21 Graham Fire and Rescue
Pierce County Flood Control Zone District (2012)
Pierce County Housing Authority
Pierce County Public Transportation Benefit Authority
Pierce County Road and Bridge Service District No. 1 (Road and
Bridge Service District)
Pierce County Rural Library District
Port of Tacoma
County revenue sources and types
This section provides information on the types and structures of revenue
resources available to local governments in the state. Reference material for
the information is directly sourced from the Municipal Research and Services
Center (MRSC) publications Revenue Guide for Washington Counties and
Revenue Guide for Washington Cities and Towns and has been reproduced in
this appendix for the sake of the reader.141
Property tax
Current expense fund levy
Primary source of property tax revenues for most counties – revenues
are unrestricted and may generally be used for any lawful
governmental purpose.
Maximum levy rate is $1.80, but may increase up to $2.475 if using a
road levy shift.
141 See “Revenue Guide for Washington Cities and Towns”, MSRC, December 2022.
And “Revenue Guide for Washington Counties”, MSRC, December 2022.
INCORPORATION STUDY FOR PARKLAND, PAGE 166
SPANAWAY, MIDLAND, & FREDERICKSON MAY 11, 2023
Tax is imposed countywide, including both incorporated and
unincorporated areas.142
While revenue use is unrestricted, there are several other regular
levies authorized or required by statute that are considered part of the
current expense levy but are restricted to specific purposes. They are
County Hospital Maintenance Levy, County Lands Assessment Fund
Levy, Mental Health and Development Disabilities (MHDD) Levy,
River Improvement Fund Levy, Veterans’ Assistance (VA) Fund Levy,
Left Lid Lifts.
County road levy
Primary source of property tax revenues for county road fund
Revenues are restricted and must be used for roads.
The maximum levy rate is $2.25, but county legislative authority may
divert some revenue or shift taxing authority to current expense fund
through road levy diversions/shifts.
Tax is only imposed in unincorporated areas and is not imposed within
cities or towns.
Does not require voter approval.
Road levy shifts
Allows county to shift a certain dollar amount from the road levy to
the current expense (general fund) levy, thus increasing the current
expense levy rate and reducing the road levy rate.
Since the road levy is collected only from those taxpayers in the
unincorporated areas of the county while the county current expense
levy is paid by all county residents, this results in a net property tax
increase within the incorporated areas and a net property tax decrease
within the unincorporated areas.
The shifted levy funds received by the current expense fund may be
used for any lawful governmental purpose within the incorporated or
unincorporated county.
Resulting current expense levy rate cannot exceed $2.475 per $1,000
AV, and total combined road + current expense levy rate cannot
exceed $4.05 per $1,000 AV.
Road levy shift cannot cause another taxing district’s levy to be
reduced. Levy shift must be reduced, eliminated, or bought down
before pro-rationing can take place.
A road levy shift does not affect a county’s eligibility for rural arterial
program (RAP) funding.
Does not require voter approval.
142 Since the County Road Levy is only imposed in the unincorporated areas, those
areas are subject to both the current expense and road levies, while properties
located within a city or town are subject to the county current expense levy but not
the road levy.
INCORPORATION STUDY FOR PARKLAND, PAGE 167
SPANAWAY, MIDLAND, & FREDERICKSON MAY 11, 2023
Road levy diversions
Allows county to “divert” road levy revenues to the current expense
fund primarily to fund traffic law enforcement in unincorporated
areas.
Revenue may technically be used for any service within
unincorporated areas. However, if used for anything besides traffic
law enforcement, county may lose Rural Arterial Program (RAP)
funding for the following year, with some exceptions.
Does not require voter approval.
Affordable housing levy
A county, city or town may impose additional regular property tax
levies of up to fifty cents per thousand dollars of assessed value of
property in each year for up to ten consecutive years
Before imposing the levy, the governing body of the county, city or
town declares the existence of an emergency with respect to the
availability of housing that is affordable to very low-income
households or low-income households in the taxing district and adopt
an affordable housing financing plan to serve as the plan for
expenditure of funds raised by a levy.
Revenues restricted to finance affordable housing for very low-income
households, and affordable homeownership, owner-occupied home
repair and foreclosure prevention programs for low-income
households.
Subject to $10 constitutional limit but not $5.90 limit
Requires voter approval
Conservation futures levy
Property tax – additional levy up to $0.0625 per $1,000 assessed
valuation
RCW 84.34.230 allows for any county to impose a countywide property
tax conservation futures levy.
Revenues restricted to the acquisition of open space and future
development rights
Subject to $10 constitutional limit but not $5.90 limit.
Does not require voter approval.
Criminal justice levy
Property tax – additional levy up to $0.50 per $1,000 assessed
valuation for up to six years.
RCW 84.52.135 authorizes any county with a population of 90,000 or
less to impose the levy
Revenues restricted to criminal justice purposes.
Subject to $10 constitutional limit but not $5.90 limit
Requires voter approval
Cultural access program levy
INCORPORATION STUDY FOR PARKLAND, PAGE 168
SPANAWAY, MIDLAND, & FREDERICKSON MAY 11, 2023
RCW 84.52.821 authorized any county except King County to impose a
property tax additional levy with maximum rate based on retail sales.
Cities have the same authority under the same statute. However, the
enabling legislation provided counties with the first right of refusal
and did not allow a city to place this measure on the ballot unless
either (a) the county adopted a resolution forfeiting its right, or (b) the
county did not place such a proposition before the voters by June 30,
2017. Since the 2017 deadline has passed, any city or town may now
place a cultural access program levy on the ballot.
Per MRSC’s interpretation, a city and a county may not impose this
levy concurrently.
Revenues are restricted and may only be used for specified cultural
purposes.
Subject to $5.90 limitation and $10 constitutional limit
Requires voter approval
Emergency medical services (EMS) levy
RCW 84.52.069 authorizes counties to impose a property tax –
additional levy up to $0.50 per $1,000 assessed valuation. Many of the
EMS levies within Washington are imposed by smaller jurisdictions
such as cities, towns, fire protection districts and public hospital
districts. However, there are a number of counties that have
countywide (or nearly countywide) EMS levies.
Any county must submit a countywide EMS levy to voters. However, if
the county contains any cities with a population in excess of 50,000,
the county must first get city legislative body approval from at least
75% of those cities located within the county.
If a county has imposed an EMS levy at the maximum rate, no other
taxing jurisdiction within the county may impose an EMS levy. If a
county has imposed an EMS levy below the maximum rate, any
eligible taxing jurisdiction within the county may still impose its own
separate EMS levy, as long as the combined rate does not exceed
$0.50.
Revenues are restricted to the provision of emergency medical care
services.
May be imposed for six years, ten years or permanently
Subject to $10 constitutional limit but not $5.90 limit
Requires voter approval
Ferry district levy
Any county that has formed a passenger-only ferry district
encompassing part or all of the county may impose the property tax –
additional levy up to $0.75 per $1,000 assessed valuation (or $0.075
for King County only).
Revenues are restricted to passenger-only ferry service.
Subject to $10 constitutional limit but not subject to $5.90 limit.
INCORPORATION STUDY FOR PARKLAND, PAGE 169
SPANAWAY, MIDLAND, & FREDERICKSON MAY 11, 2023
Does not require voter approval.
Flood control zone district levy
The supervisors of any flood control zone district established by the
county may impose an additional property tax levy up to $0.50 per
$1,000 assessed valuation for flood control zone districts.
Revenues are restricted to flood control or stormwater projects.
Subject to both $5.90 and $10 constitutional limit
Does not require voter approval
Transit levy
Property tax for transit-related expenditures
Only applies to King County
Does not require voter approval
Excess levies (operations & maintenance)
RCW 84.52.052 authorizes any taxing district, except school districts
and fire protection districts, to impose additional taxes by in which a
larger levy is necessary in order to prevent the impairment of the
obligation of contracts.
Property tax – additional levy with no specific levy rate cap
Revenues may be used for any lawful governmental purpose, but must
be spent in accordance with the purpose(s) specified in the ballot
measure.
Requires voter approval
General obligation (G.O.) bond excess levies (capital purposes)
RCW 84.52.056 authorizes “any municipal corporation” to issue
general obligation bonds for capital purposes through an excess levy to
repay unlimited tax general obligation (G.O.) bonds
Revenues are restricted to capital purposes.
Requires voter approval.
Refunds and refund levies
Taxing districts may increase one or more of their levies to pay for any
property tax administrative refunds or refunds due to judgments. In
RCW 84.69.020 "Taxing district" is defined as any county, city, town,
port district, school district, road district, metropolitan park district,
water-sewer district or other municipal corporation.
Refund levies are not subject to the 1% annual levy lid, but may not
exceed the district’s normal statutory maximum levy rates
Does not require voter approval
Retail sales and use tax
“Basic” sales tax – first half-cent
Sales tax of 0.5% – revenues are unrestricted and may be used for any
lawful governmental purpose.
INCORPORATION STUDY FOR PARKLAND, PAGE 170
SPANAWAY, MIDLAND, & FREDERICKSON MAY 11, 2023
Currently imposed by all counties
Revenue shared with cities
“Optional” sales tax – second half-cent
Sales tax up to 0.5% - revenues are unrestricted and may be used for
any lawful governmental purpose. Additional non-voted sales tax may
be imposed in increments of 0.1% up to 0.5%.
Currently imposed at the maximum rate by all counties except Asotin
County and Klickitat County
Revenue shared with cities.
Affordable housing sales tax credit (HB 1406)
Credit against 6.5% state sales tax. Credit is 0.0146% in
unincorporated areas; credit within incorporated areas depends on
whether city is participating or has a “qualifying local tax.”
Had to be adopted no later than July 27, 2020; expires after 20 years
Revenues are restricted and must be used for affordable and
supportive housing. Counties under 400,000 population may also use
revenues for low-income rental assistance. Cities and counties may
pool resources.
Criminal justice sales tax
Sales tax of 0.1% - revenues are restricted and must be used for
criminal justice.
May be imposed by any county.
Revenue shared with cities
Does not require voter approval.
Cultural access program sales tax
Sales tax up to 0.1% - revenues are restricted and must be used to
benefit or expand access to nonprofit cultural organizations
Maximum duration of seven years; may be renewed for additional
seven-year periods.
May be imposed by any county
Requires voter approval
Emergency communications (E-911) sales tax
Sales tax of up to 0.2% - revenues are restricted and must be used for
emergency communications systems and facilities
May be imposed by any county
Requires voter approval
Housing & related services sales tax
Sales tax up to 0.1% - revenues are restricted and must be used for
affordable housing, behavioral health and related services
May be imposed by any county.
May be approved by voters or legislative body
INCORPORATION STUDY FOR PARKLAND, PAGE 171
SPANAWAY, MIDLAND, & FREDERICKSON MAY 11, 2023
Juvenile detention facility & jails sales tax
Sales tax of 0.1% - revenues are restricted and must be used for
juvenile detention facilities and jails.
May be imposed by any county with a population under one million
Requires voter approval
Mental health & chemical dependency sales tax
Sales tax of 0.1% - revenues are restricted to and must be used for mental health
and drug treatment purposes.
May be imposed by any county
Does not require voter approval
Public safety sales tax
Sales tax up to 0.3% - revenues are partially restricted; one-third
must be used for criminal justice or fire protection
May be imposed by any county
Revenue shared with cities
Motor vehicle sales and first 36 months of motor vehicle leases are
exempt
Requires voter approval
Rental care sales tax – public sports
Sales and use tax of 1% upon car rentals countywide
Revenues must be used for public stadium facilities and
youth/amateur sports activities and facilities
Rural counties public facilities sales tax
Any “rural county” may impose a credit of up to 0.09% against the
state sales tax
Revenues must be used to finance public facilities serving economic
development purposes
Tax generally may not be imposed for more than 25 years.
Does not require voter approval
Transit sales tax
Sales taxes up to 0.9% for transit and 1.0% for high-capacity transit
– revenues are restricted and must be used for transit
May be imposed by counties that operate transit service
Requires voter approval
Transportation benefit district sales tax
Sales tax up to 0.3% - revenues are restricted and must be used for
transportation
May be imposed by any county that has established a transportation
benefit district
Maximum duration of ten years unless used for repayment of debt;
may be renewed
Generally requires voter approval
INCORPORATION STUDY FOR PARKLAND, PAGE 172
SPANAWAY, MIDLAND, & FREDERICKSON MAY 11, 2023
Zoo & aquarium sales tax
Sales tax up to 0.1% - revenues are restricted and must be used for
zoos, aquariums and wildlife facilities
Only available to Pierce County
Requires voter approval
Lodging (hotel/motel) tax
Any county may impose a lodging tax up to 5% of which:
(Basic) 2% is a credit against the state sales tax
(Additional) 2% is in addition to the sales tax rate.
A few jurisdictions have been grandfathered in with varying rates.
Revenues are restricted and must generally be used for tourism
activities or tourism-related facilities
May also be used to repay debt for affordable workforce housing
within one-half mile of a transit station
Counties of 5,000 or more must establish a lodging tax advisory
committee to review funding applications and recommend awards
Does not require voter approval
Real Estate Excise Tax (REET)
REET 1 – The “first quarter percent”
Any county may impose a 0.25% excise tax upon all real estate sales
within unincorporated areas only.
Revenues are restricted and may only be used for certain capital
purposes and housing relocation assistance, depending on the county’s
population and whether it fully plans under GMA.
May also be used for limited capital facility maintenance, with
additional reporting requirements.
Does not require voter approval.
REET 2 – The “second quarter percent”
Any county that is fully planning under GMA may impose an
additional 0.25% excise tax upon all real estate sales, in addition to
the tax imposed under REET 1.
Revenues are restricted and may only be used for certain
transportation, water, stormwater, sewer and park capital purposes.
May also be used, with additional reporting requirements for:
Limited capital facility maintenance
REET 1 capital projects
Affordable housing and homelessness (through January 1, 2026 only)
Does not require voter approval for counties required to plan under
GMA, but does require voter approval for counties voluntarily
planning under GMA
REET in lieu of “second half” sales tax
INCORPORATION STUDY FOR PARKLAND, PAGE 173
SPANAWAY, MIDLAND, & FREDERICKSON MAY 11, 2023
Any county that has not imposed the “second half” sales tax may
impose an additional excise tax up to 0.5% upon all real estate sales.
Revenues are unrestricted and may be used for any lawful government
purpose
Almost all counties have imposed the “second half” sales tax, which
will likely generate more revenue.
Does not require voter approval but is subject to possible referendum
Conservation areas REET
Any county may impose an additional excise tax of up to 1.0% on all
real estate sales countywide, including within incorporated cities.
Revenues are restricted and must be used for acquisition and
maintenance of conservation areas.
Requires voter approval
Affordable housing REET
San Juan County may impose an additional excise tax of 0.5% on all
real estate sales countywide, including within incorporated cities.
Revenues are restricted and must be used for the development of
affordable housing
Requires voter approval
Other excise taxes
911 telephone tax
Excise tax up to $0.70 per month per landline phone number, wireless
phone number, and VOIP service line. For prepaid wireless services,
maximum rate is $0.70 per retail transaction
Revenues must be used for county’s emergency services
communication system
Does not require voter approval
Admission Tax
Any county may impose an admission tax up to 5% of the admission
charge for various events and facilities
Revenues may generally be used for any lawful governmental purpose
Does not require voter approval
Commercial parking tax
Any county may impose a tax on commercial parking businesses
within unincorporated areas.
Revenues are restricted and must be used for transportation purposes
Does not require voter approval but is subject to possible referendum
Gambling tax
Any county may tax gambling activities within unincorporated areas
Maximum tax rates depend upon type of gambling activity
Revenues are restricted and must be used for public safety purposes
INCORPORATION STUDY FOR PARKLAND, PAGE 174
SPANAWAY, MIDLAND, & FREDERICKSON MAY 11, 2023
Does not require voter approval
Leasehold excise tax
Any county can levy an excise tax up to 6% on most leases of tax-
exempt properties
Tax is credited against state leasehold excise taxes; city leasehold
excise taxes are credited against county tax
Revenues are unrestricted and may be used for any lawful
governmental purpose
Does not require voter approval
Local household tax
Excise tax of up to $1.00 per month per household; may not be
imposed concurrently with transit sales tax
Revenues must be used for public transportation improvements
May require voter approval and may be subject to referendum
Local option gas tax
Counties may impose a local option gas tax of 10% of the state gas tax
rate
Revenues are shared with cities and must be used for transportation
purposes
Requires voter approval
Timber excise tax
Credit against state timber excise tax; counties receive 4% excise tax
on all harvest of timber on public or private land.
County retains some of the revenue and shares the rest with other
local taking districts.
Does not require voter approval
State shared and federal revenues
Cannabis excise tax
A portion of the state’s cannabis excise tax is distributed to cities and
counties depending on their cannabis policies.
Two separate components:
Per capita share distributed to all cities and counties that do not
prohibit cannabis businesses
Retail share distributed to cities and counties where cannabis
retailers are located, in proportion to statewide cannabis revenues
No clear guidance on use of revenues, but stated intent of I-502 is that
cannabis legalization will [allow] law enforcement resources to be
focused on violent and property crimes [and generate] new state and
local tax revenue for education, health care, research, and substance
abuse prevention.
INCORPORATION STUDY FOR PARKLAND, PAGE 175
SPANAWAY, MIDLAND, & FREDERICKSON MAY 11, 2023
Capron refunds
Island counties and cities receive funds of state gas taxes and motor
vehicle license fees to compensate for their lack of state highways and
state highway investment
Only distributed to San Juan and Island counties and their cities.
Liquor distributions
Distributed to all counties on a per capita basis
All counties receive two separate distributions, liquor profits and
liquor excise
Public utility district (PUD) privilege tax
The state imposes a 2% excise tax, plus 0.02% per kilowatt-hour of
self-generated energy, on all public utility districts (PUDs) in lieu of
property taxes
Revenues are shared with counties, cities and towns
Revenues are unrestricted and may be used for any lawful government
purpose
City-county assistance (ESSB 6050) distributions
Portion of the state real estate tax (REET) is shared with all counties
Originally intended to mitigate the loss of motor vehicle excise tax
(MVET) revenues following I-695 in 1999
Distribution formula is complicated and depends upon population,
assessed value, sales tax receipts and historical budget distributions
Revenues are unrestricted and may be used for any lawful
governmental purpose
Criminal justice distribution
Distributions to all counties from the state general fund
Distribution is based on a formula that includes the county’s
population, crime rate and number of criminal cases filed in superior
court
Revenues are restricted to specified criminal justice purposes.
Federal payments in lieu of taxes (PILT)
Payment from federal government for certain tax-exempt federal lands
within county jurisdiction, in lieu of property taxes
Subject to federal appropriation and therefore subject to reduction
Revenues are unrestricted and may be used for any lawful
governmental purpose
Federal timber sales/secure rural schools
Federal payments to counties for timber sales in national forests
within the county
Secure Rural Schools payments compensate for declining timber
revenues
Subject to federal appropriation and therefore subject to reduction
INCORPORATION STUDY FOR PARKLAND, PAGE 176
SPANAWAY, MIDLAND, & FREDERICKSON MAY 11, 2023
Revenues must be used for county roads, schools and other purposes
authorized by federal law
Impaired driving safety (DUI) account
Portion of fees for revoked or suspended driver’s licenses are
distributed to counties, subject to appropriation
Revenues must be used for DUI prevention and related costs
Motor vehicle fuel tax (MVFT)
Distributed to all counties based on a formula including population,
annual road costs, and “need”
Total distributions depend on amount of gas taxes collected statewide
Revenues are restricted and must be used for streets, roads and
highways
Counties must use at least 0.42% for pedestrian, equestrian or bicycle
trails, unless such amount would be $3,000 or less per year
Multimodal funds and increased MVFT
Distributed to all counties based on a formula including population,
annual road costs, and “money need”
Direct appropriations from the state transportation fund; do not
depend on actual fuel sales
Revenues are restricted
Multimodal funds may be used for any transportation process
Increased MVFT funds must be used for street or highway purposes
(including eligible pedestrian, equestrian or bicycle trails).
State forest timber revenues
State Forest Timber Revenues
State distribution to counties from timber sales occurring on certain
state forest lands
Revenues must generally be distributed to county funds in the same
manner as general taxes
Departmental fees, charges and reimbursements
Auditor’s Office Fees
o Recording Fees and Surcharges – Affordable Housing
Surcharge, Homeless Housing Surcharge, Centennial Document
Preservation Surcharge
o Election Candidate Filing Fees
o Election Services Reimbursement
o Marriage License Fees
o Motor Vehicle License Fees
o Vessel Registration Fees
Coroner/Medical Examiner Fees and Reimbursement
INCORPORATION STUDY FOR PARKLAND, PAGE 177
SPANAWAY, MIDLAND, & FREDERICKSON MAY 11, 2023
District Court Fines, Fees and Reimbursements, Dispute Resolution
Surcharge, District Court Judges’ Salaries, Interlocal Agreements,
Other District Court Fees
Prosecuting Attorney Reimbursement
Sherriff and Jail Fees, Immigration Detention Agreements, Interlocal
Agreements
Superior Court/County Clerk Fees and Reimbursements, Civil and
criminal infractions, juvenile fees, Superior Court Judges’ Salaries
Treasurer’s Fees, Electronic Transaction Fees, Investment Fees, Real
Estate Excise Tax Fees, Other Treasurer’s Fees
Other revenue sources
Franchise fees
Franchise agreements allow utility providers to install and maintain
equipment within county rights-of-way.
Franchise fees are generally limited to the recovery of administrative
costs.
Impact fees – Growth Management Act (GMA)
Fee charged to developers to mitigate the impacts on infrastructure
and capital facilities because of increased demand resulting from new
development. Does not require voter approval.
Revenues are restricted and may only be used for streets, parks,
schools and fire protection. May only be imposed by counties planning
under the GMA. Must generally be expended within ten years of
receipt.
Impact fees – Local Transportation Act (LTA)
Fee charged to developers to mitigate the impacts on infrastructure
and capital facilities because of increased demand resulting from new
development. Does not require voter approval.
Revenues are restricted and may only be used for transportation. May
be imposed by any county, but typically impact fees are assessed
under the GMA rather than LTA.
Investments (interest earnings)
Counties may invest excess funds not immediately needed for
operations
Interest earned on the investments may be used by the fund that was
invested, for purposes allowed within that fund.
Earnings may or may not be restricted, depending on the revenue
source
Tourism promotion area fees
Any county may form a tourism promotion area and impose charges up
to two dollars per room per night. Effective June 11, 2020 to July 1,
2027 the city/town may impose an additional fee up to three dollars
INCORPORATION STUDY FOR PARKLAND, PAGE 178
SPANAWAY, MIDLAND, & FREDERICKSON MAY 11, 2023
per room per night. Does not require voter approval, but requires
support from local lodging businesses and may be repealed if a
majority of lodging businesses submit a written petition.
Only applies to lodging businesses with 40 or more rooms. Revenues
must be used for tourism promotion to increase the number of tourists
to the area. Only applies to unincorporated areas unless county signs
an interlocal agreement with one or more cities.
Transportation benefit district vehicle license fees
Any county that has established a transportation benefit district
(TBD) may impose a non-voted vehicle license fee up to $50 or a voted
vehicle license fee up to $100
Revenues must be used for specified transportation projects.
Other county fees and charges
Animal licensing, Fireworks retail and display permits, Inspection of
restaurants, Licenses for certain businesses or events authorized by
state law or county charter, Parks and recreation facilities, processing
of development and building permit applications, public records
copying charges
Special taxing districts
County airport district
Revenue options: Property tax levy up to $0.75 per $1,000 AV; revenue
bonds; fees, charges and concessions.
County ferry district
Revenue options: Property tax levy generally up to $0.75 per $1,000 AV;
general obligation bonds; one-year excess O&M levy; fares and vehicle
replacement surcharges.
County public transportation authority
Revenue options: Transit sales tax up to 0.9%; local household tax; B&O tax;
fees and charges.
County rail district
Revenue options: General obligation bonds & revenue bonds; one-year excess
O&M levy; charges, fees and special assessments.
EMS district
Revenue options: EMS levy up to $0.50 per $1,000 AV; one-year excess O&M
levy if population density <1,000 per square miles.
Flood control zone district
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Revenue options: Property tax levy up to $0.50 per $1,000 AV; special
assessments; one-year excess O&M levy; local improvement districts/Utility
LIDs; general obligation bonds and revenue bonds.
Lake & beach management district
Revenue options: Special assessments; rates and charges; revenue bonds.
Library capital facility area
Revenue options: General obligation bonds – if the first two bond measures
fail, capital facility area must be dissolved.
Metropolitan park district
Revenue options: Property tax levy up to $0.75 per $1,000 AV.
Park & recreation service area
Revenue options: 6-year property tax levy up to $0.60 per $1000 AV; one-year
excess O&M levy; general obligation bonds; users fees, charges, and
concessions.
Public facility district (PFD)
Revenue options: Lodging tax; admission & parking taxes; general obligation
bonds & revenue bonds; user charges and fees; one-year excess O&M levy.
Public hospital capital facility area
Revenue options: General obligation bonds – if the first two bond measures
fail, the capital facility area must be dissolved.
Road & bridge service district
Revenue options: One-year excess O&M levy; general obligation bonds; local
improvement district/Utility LID.
Shellfish protection district (clean water district)
Revenue options: County tax revenues; rates, charges and inspection fees.
Solid waste collection district
Revenue option: User fees.
Solid waste disposal district
Revenue option: excise tax “sufficient to fund activities;” one-year excess
O&M levies; general obligation bonds & revenue bonds; user fees and
charges.
Television reception improvement district
Revenue options: Excise tax based on number of TV sets.
Transportation benefit district
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Revenue options: Sales tax up to 0.2% and ten years; vehicle license fee;
border area fuel tax for TBDs including a Canadian border cross; tolls; local
improvement districts; commercial & industrial development; general
obligation bonds; one-year excess O&M levies.
Unincorporated transportation benefit area
Revenue options include a transit sales tax up to 0.9%; local household tax;
B&O tax; fees and charges.
Summary information on municipal debt
The following provides a summary of the types of municipal debt, bond
capacity and limitations, as well as constitutional limitations to municipal
debt. The following information is reproduced directly from MSRCs
publication on municipal debt for readers easy reference.143
Types of bonds
General obligation bonds
GO bonds issued by local governments are secured by a pledge of the taxing
district’s property tax authority. General obligation bonds have been the
traditional form of financing for capital projects such as land acquisition,
park development and transportation projects that are owned and operated
by government. There are two basic kinds of general obligation bonds:
Limited tax general obligation (LTGO) bonds (also called
“councilmanic” bonds or non-voted debt), may be issued by a vote of
the legislative body. General fund revenues must be pledged to pay
the debt service on LTGO. LTGO debt does not provide any additional
revenue to fund debt service payments but must be paid from existing
revenue sources.
Unlimited tax general obligation (UTGO) bonds (also called voted
debt) must be approved by 60% of the voters, with a voter turnout
equal to at least 40% of those who voted in the most recent general
election. When the voters are being asked to approve the issuance of
these bonds, they are simultaneously asked to approve an excess levy
which raises their property taxes to cover the debt service payments.
UTGO bonds can be used only for capital purposes.
Revenue bonds
Revenue bonds may be issued to finance projects for any enterprise that is
self-supporting. Revenue bonds are generally used to finance water and
wastewater projects, airports and stormwater systems. Payment for debt
service on revenue bonds comes from user fees generated by the capital
143 https://mrsc.org/explore-topics/finance/debt/types-of-municipal-debt
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facility that is being built. The local entity is then responsible for
establishing and collecting sufficient revenue (through rates) to retire the
debt.
Revenue bonds are not backed by the full faith and credit of the city, and
therefore investors consider them somewhat less secure than general
obligation bonds. As a result, the interest rate that bond buyers demand may
be higher than those on general obligation bonds.
Revenue bonds are not subject to either statutory or constitutional debt
limits.
Improvement district bonds
When a capital project is going to primarily or wholly benefit only a subset of
the citizenry, a local improvement district (LID) or road improvement district
(RID) can be formed for part or all of the project. LIDs are commonly used for
projects such as street improvements, streetlights, sidewalks, water and
sewer systems, and underground power lines.
Property owners may petition local governments to form an LID or RID, or
the city or county may adopt a resolution of intent to form an LID or RID. An
LID initiated by legislative resolution may be blocked if the property owners
who would be paying at least 60% of the cost protest.
An assessment roll is established with each property's assessment being
equal to the estimated special benefit to that property. Property owners have
an opportunity to pay all their assessments up front, but normally LID bonds
need to be issued to cover at least part of the project cost. Courts have ruled
that LID bonds are not general obligations and are not backed by the full
faith and credit of the city.
Another form of special assessment debt is the utility local improvement
district (ULID). It may be formed in a manner similar to LIDs for the
purposes of providing water systems, sewer and storm water systems, and
parking garages. The primary difference between the two kinds of districts is
that revenue bonds must be issued for ULIDs, assessments must be
deposited in a fund to pay off the revenue bonds, and the bonds are backed
both by assessments and by utility revenue.
Refunding and advance refunding bonds
Refunding bonds are bonds that are issued to replace and refinance
outstanding general obligations or revenue bonds. The use of a refunding
mechanism is often driven by the desire to lower interest rates and reduce
payment amounts on older, more expensive debt.
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Advance refunding refers to the practice of issuing refunding bonds more
than 90 days before the date on which the refunded bonds may be called and
redeemed. Mechanically, the proceeds of the new bonds (the “refunding
bonds”) are deposited with an escrow agent, who uses those proceeds to pay
the old bonds (the “refunded bonds”) at the earliest possible date (the
maturity or earliest “call” date).
Private activity bonds
Private activity bonds (also known as the Bond Cap Allocation Program) are
tax-exempt revenue bonds often issued by public development corporations
formed to finance non-governmental activities. The purpose of these bonds is
to finance activities or projects that satisfy a substantial public purpose.
They are often used to facilitate economic and industrial development,
increase employment, and finance housing.
In Washington State, bonds may only be issued by authorized governmental
entities, so a private business developing a project typically works with
either a state or local bond issuer. The bond issuer then applies to the
Department of Commerce for authorization to issue the bond. Commerce is
responsible for taking applications, evaluating projects, authorizing bond
issuances under the cap, and ensuring the state does not exceed its cap
authority permitted under federal law.
For Short-term Debt – Bond anticipation notes are borrowing alternatives
available to local governments in the state that are repaid out of money
derived from the source or sources in anticipation of which they are issued or
from any money otherwise legally available for this purpose.
Bond capacity and limitations
There are limits to the borrowing power of local governments that are based
on both constitutional and statutory restrictions and based on a percentage of
the assessed valuation of the taxable properties within each jurisdiction.
Additionally, federal law establishes rules about the tax status of
government securities and the process for issuing and disclosing debt
obligations. The debt limit is expressed as a percentage of the taxing
district's total assessed value of taxable properties. Debt limits also restrict
how much of this capacity can be used for various purposes.
According to the Washington State Department of Commerce Bond Users
Clearinghouse, the limitations on Municipal Debt are as follows:
Constitutional limitations – Article VIII, Section 6
Non-voted (councilmanic) debt: not > 1.5% of assessed value of taxable
properties in the jurisdiction (AV)
Total debt: not > 5% of AV
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Exceptions:
o Cities and towns: additional 5% with voter approval for water,
lights and sewers when those facilities are controlled by the
municipality (total of 10%).
o School districts: additional 5% with voter approval for capital
outlays (total of 10%).
Statutory limitations
Statutory debt limits are usually set at a lower level than constitutional-
based limits based on the legislature’s perception of what is a safe and
reasonable amount of debt load to carry. When setting debt limits, the
legislature also takes into consideration the cumulative debt impacts of
overlapping taxing districts on local communities. Study Area relevant bond
capacity limits include:
Metropolitan municipal corporation for GO bonds (RCW 35.58.450) for
those not voted on: Not resulting in total non-voted indebtedness
>3/4%; for those voted on: Not resulting in total indebtedness > 5%
Metro park district for GO bonds for park, boulevard, aviation
landings, playgrounds, parkways (RCW 35.61.100 and 35.61.110) for
those not voted on: Not resulting in total non-voted indebtedness >
1/4%; for those voted on: Not resulting in total indebtedness > 2.5%.
Pierce County special taxing districts
The following summary of special taxing districts is sourced from the Study
of Pierce County Budget, 2016 by the League of Women Voters of Tacoma-
Pierce County. Also included is a list of special purpose districts intersecting
with the Study Area, sourced from the MRSC List of Special Taxing Districts
by County, 2013.
Special taxing districts
Drainage districts: There are eight drainage districts in Pierce County.
Drainage districts provide services for surface water runoff, including
drainage ditches and are managed by boards of commissioners composed of
three members each. The boards have exclusive charge of the construction
and maintenance of all drainage systems for the district. The districts are
funded by property tax levies.
Conservation district: The Pierce Conservation District works with the
community to improve water quality, promote sustainable agriculture, create
thriving habitat and build a just and healthy food system for all, through
education, community engagement, and financial and technical assistance.
The Conservation is non-regulatory. It is governed by an elected Board.
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Fire districts: There are 23 fire districts in Pierce County. In addition, the
City of Tacoma and some of the smaller cities have their own city-operated
fire departments. These districts are funded by property tax levies, many of
which are voter-approved and some of which include “levy lid lifts”, allowing
an increase in the levy for that district to increase more than the regular
limit of one percent per year.
Flood control zone district: Pierce County has estimated that a major
flood could cause as much as $725 million in damages and losses, dealing a
crushing blow to our county’s economy. Thus, in 2011, the Pierce County
Council created a Flood Control Zone District (FCZD), to address some of the
flood management needs. It is a special-purpose district covering the entire
area of Pierce County. It is funded through a property tax levy. Although it is
a special taxing district, it is governed by the Pierce County Council, with
input and recommendations from an Advisory Committee. The Pierce
County’s Department of Public Works carries out the district’s approved
projects and programs.
Library district: The Pierce County Library District is an independent
municipal corporation established under RCW 27.12, serving all
unincorporated area within Pierce County as well as annexed cities and
towns. Seventeen of the County’s 21 cities and towns have annexed to the
Library District, which operates 20 branches throughout Pierce County. All
operations and capital improvements are funded by a dedicated property tax
levy with a maximum mill rate of 50 cents per $1000 of assessed property
value. The District is governed by a Board appointed by the County Council.
Metropolitan park districts: There are three Metropolitan Park Districts
in Pierce County. They are Peninsula, Key Peninsula and Tacoma.
Metropolitan park districts, authorized by Ch. 35.61 RCW, may be created
for the management, control, improvement, maintenance and acquisition of
parks, parkways, boulevards and recreational facilities. They are funded
through property tax levies.
Park and recreation district: Anderson Island has formed the only Park
and Recreation District in Pierce County. Park and Recreation Districts are
authorized by Ch. 36.69 RCW to provide leisure time activities and facilities
and recreational facilities of a nonprofit nature as a public service to the
residents of the geographical areas included within their boundaries. They
are financed by property tax levies.
Port district: The Port of Tacoma, which includes 24 cities in the county, is
an independent municipal corporation that operates under Title 53 RCW.
Five commissioners are elected to four-year terms by the citizens of Pierce
County to serve as the Port’s board of directors. The commission hires the
CEO, sets policy and strategic direction and approves all major expenditures.
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Public facilities district: Public facilities districts (PFD) are municipal
corporations with independent taxing authority and are taxing districts
under the state constitution. There are a variety of means to support the
operation of the PFDs, including charging fees for the use of facility, levying
a limited admission tax, imposition of a local sales and use tax to finance,
design, construct, remodel, maintain or operate public facilities. The PFD in
Pierce County is the Greater Tacoma Regional Convention Center PFD that
includes Tacoma, Fife, Lakewood and University Place.
Public housing authorities: There are two public housing authorities in
Pierce County. One is the Housing Authority of the City of Tacoma; the other
is the Pierce County Housing Authority. The Housing Authority of the City of
Tacoma provides housing assistance to over 11,000 individuals, the majority
being minors, seniors or persons with disabilities. It has no tax authority and
depends on program income, mostly from the federal government and grants.
The Pierce County Housing Authority is a public body, corporate and politic,
created by Pierce County in 1978, pursuant to State statute, to provide
affordable housing for low-income families in Pierce County. The governing
body is a board of commissioners, which is comprised of five members
appointed in rotating terms by the Pierce County Executive. The Authority
does not have the power to levy taxes and must rely upon the County’s ability
to issue bonds and its ability to collect rent from residents and receive
financial assistance from the Federal, State and local governments for its
operation.
Regional transit authority: Central Puget Sound Regional Transit
Authority, also known as Sound Transit, operates high capacity transit,
commuter rail and light rail throughout a three-county district that includes
King, Snohomish and Pierce Counties. It is governed by a board whose
composition is directed by statute. It includes the Washington State
Secretary of Transportation and the King, Pierce and Snohomish County
Executives. The three County Executives appoint other elected officials from
their counties to the remaining seats on the board, which are apportioned
based on population, with each county receiving a seat for each 145,000
people that live within the county. Sound Transit is funded with a Regional
Transit Authority (RTA) tax imposed within the Sound Transit district that
includes a retail sales tax and a motor vehicle excise tax (license tabs).
Road and bridge service district: RCW 36.83.010 allows the legislative
authority of a county to establish one or more service districts within the
county for the purpose of providing and funding capital and maintenance
costs for any bridge or road improvement or for providing and funding capital
costs for any state highway improvement a county or a road district has the
authority to provide. The District is governed by a board of three
commissioners appointed by the county legislative authority or county
INCORPORATION STUDY FOR PARKLAND, PAGE 186
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executive. The electors of a service district are all registered voters residing
within the district. Pierce County has established one, the Road and Bridge
Service District No. 1. It is funded with the County road property tax.
School districts: There are 15 public school districts in Pierce County.
These are each governed by an elected school board. They are funded by a
complex system that includes federal and state funding and local voter-
approved school district levies.
Transportation benefit area: There is one Transportation Benefit Area in
Pierce County, which is Pierce Transit. Pierce Transit covers the
unincorporated area of Pierce County and 19 cities. Founded in 1979, Pierce
Transit covers 292 square miles of Pierce County with roughly 70% of the
county population. Pierce Transit is governed by a nine-member Board
comprised of elected officials representing Pierce County, Tacoma, Lakewood,
Puyallup, University Place and the smaller cities and towns in Pierce
County. A tenth, non-voting union representative is also allowed, although
this right is currently not being exercised and the position is vacant. Pierce
Transit is funded primarily through a sales tax imposed in Pierce County,
grants, fares and advertising revenue.
Transportation benefit districts: Chapter 36.RCW authorizes cities and
counties to form transportation benefit districts, which are quasi-municipal
corporations and independent taxing districts that can raise revenue for
specific transportation projects, usually through vehicle license fees or sales
taxes. Transportation benefit districts have been established in Orting,
Tacoma and University Place.
Water and sewer districts: There are 15 districts in Pierce County that are
either water districts, sewer districts or a combination of both. Water and
sewer districts can impose an excess levy, but not a regular levy. The excess
levy requires a vote approval of 60 percent of 40 percent of those voting in the
last general election. Water and sewer districts may also receive grant
funding for certain projects.
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