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Renton's Annexation PolicyFor Renton, there are challenges associated with annexation, and there remain many concerns and questions about the significant fiscal impact of annexations. A number of steps and challenges remain before these annexations could occur, particularly the cost factors involving Renton’s large Potential Annexation Areas (PAA's). Renton has conducted analyses that show services to the largest PAA's will cost more than the revenues the area will generate, and the Mayor and City Council are concerned about taking on new responsibilities and costs while at the same time maintaining service levels for existing Renton residents. The analysis shows that the annexations would place a severe strain on our City budget, and in turn, impacts to our current taxpayers. These annexation areas’ operating, capital and equipment needs are significant, and Renton has serious concerns about our ability to meet those service demands.
Until January 1, 2015, state law supported the annexation of unincorporated urban areas by offering a "credit" against the state portion of the sales tax to offset transition costs and deficits to serve these areas over ten years. The sales tax credit was available to annexing areas with populations over 10,000. This additional funding helped cities close the gap between expected service costs and potential revenues. Without this supportive funding from the state, the financial challenges of annexing the city’s PAA’s are compounded.
For additional information about annexations, please call 425.430.6575.