A tale of 2 (new) cities
Federal Way, SeaTac assess first 6 months

By GEORGE FOSTER
SEATTLE POST-INTELLIGENCER REPORTER

The fledgling cities of Federal Way and SeaTac mark six months of incorporation today, but the hard numbers aren't in yet on whether municipal government is the bargain proponents promised.

Still, SeaTac City Manager Doug Sutherland is optimistic.

"There's no question about it, we're getting a better deal on street maintenance, police services ... library services and on almost all of the issues," he said.

Federal Way's sales tax revenues are up 30 percent over what had been projected. At the same time, the cost for expanded police service is running nearly double what it was two years ago, when the community was part of unincorporated King County.

John Muir, Federal Way's finance director, speaks confidently of the future. "There is no doubt we can provide a higher level of service for the same dollar," he said.

With the overall revenue picture for the year uncertain and city governmentstill in its start-up phase, Mayor Debbie Ertel said "it's too early to tell" whether cityhood has yet fulfilled its expectations.

"I'd say we are doing as well or better" than before Federal Way became acity, Councilman Jim Webster added.

One thing is certain. Multifamily housing development - a critical issue inlast year's incorporation victory - is on the decline in this suburban city of64,000.

Permits for only one apartment complex have been issued in six months, and that 130-unit project at 35810 16th Ave. S. was already in the application process when Federal Way became a city.

"City zoning codes and maps adopted six months ago have severely limited the amount of multifamily (housing) permitted," Councilman Jim Handmacher said. "That is reflected in that there has been no new multifamily (application made) since that time."

Handmacher heads the council's Transportation and Land Use Committee and was a leader in the incorporation movement. He said the end result of the city's stricter codes and zoning maps "will take many years to see in terms of quality development. We have raised the standards of how all development must take place."

Farther north in SeaTac, where better law enforcement was the rallying cry of incorporation, Assistant City Manager Fran McNair says the city of 24,000 is getting "more police (officers) for less than we were paying" before incorporation.

She cited a 1988 incorporation study showing an area of 33,000 people paying the county $2.4 million in taxes for 26 full-time police officers serving the same area. The comparatively smaller city is now paying about $2.1million for 49 full-time officers through a contract with King County Police.

A direct comparison of taxpayers' costs under county and city governments is complicated by the fact that there was no previous breakdown of county service that matched the boundaries of the new cities.

Rob Perry of the SeaTac Finance Department is attempting to make such a comparison. At this point, he estimates, "net services are costing us less under city government. However, we have expanded those net services."

Like Federal Way, SeaTac's police, public works, parks and court functions are at least temporarily being handled through contracts with King County. Thearrangement gives the new cities control over the services, without having to make the large, initial outlays for personnel and equipment.

In SeaTac, these services are being financed largely by the city's service industry through taxes. Perry said 70 percent of SeaTac sales taxes are generated through businesses linked to traffic at Seattle-Tacoma InternationalAirport.

The new city governments also have added a level of clout when it comes to dealing with higher levels of bureaucracy.

SeaTac's McNair believes the county "is more responsive to requests by local government" than by an individual taxpayer when it comes to filling potholes and providing other services.

At the same time, King County Police Maj. Oliver Moore, who commands the Federal Way Precinct, sees local government as more responsive than county government to local problems.

"If the (county) police department recommends a special ordinance, local government would be more acutely aware of the problem," he said. "It is muchmore familiar with the community at large."

He also is confident his county officers under contract to Federal Way "can deliver the same level of services as a full-service municipal (police department) at a much-reduced cost, ... which frees up funds for other needs in the city, such as parks and human services."

So far, both new city councils have adhered to a "no-new-taxes" policy, beyond the maximum property tax of $3.60 per $1,000 of assessed valuation, including fire and library districts. That means local taxpayers would pay about the same or less than they did when they were part of unincorporated King County.

Still unknown are the long-term costs of cityhood.

If Federal Way and SeaTac decide to drop contracts with the county for services, large capital expenses could be incurred to supply city public worksand police departments with equipment.

Future city buildings are another question. Federal Way municipal government will move into leased office space at First Avenue South and South 336th Street in October, while SeaTac government is temporarily housed in the old Angle Lake School building.

"Sometime the (SeaTac) City Council is going to have to deal with (the issue of a permanent) City Hall," Sutherland said.

Federal Way Councilman Jim Webster sees "some park acquisition and development in the not-too-distant future ... and some street improvement."

"(But) if we stayed unincorporated and bought new park area, the same amount of taxes would have had to be generated," he said. "It's just a matter of what the citizens want in terms of the level of service."