Burien could face a deficit of more than $1 million to build and staff a new fire station if Seattle annexes the North Highline unincorporated area.

Community Development Director Scott Greenberg presented the financial impact to city council members at their April 3 meeting.

Interim City Manager David Cline noted that a key factor in annexation discussions is that the north end of Burien is served by two fire stations.

But, Cline added, if Seattle annexes North Highline, “this would reduce [the stations] to one.”

Greenberg said that if the unincorporated area is annexed by Seattle, the Burien/Normandy Park Fire Department (Fire District No. 2) would have to build a new fire station at Southwest 128th Street and First Avenue South and hire new staff.

“They wouldn’t have enough revenue coming in to support that station,” he said.

Greenberg also outlined the four annexation scenarios Burien city staff has studied to make a decision by the end of the year.

These include a full annexation by Burien; a partial annexation, where Burien annexes all areas except White Center and Beverly Park; a “southern option,” where Burien annexes North Shorewood and Salmon Creek; and no annexation.

Under the first three alternatives, Greenberg said the fire district would be “made whole and have a little extra money to boot, so Fire District 2 would be O.K.”

Councilwoman Rose Clark observed that Burien’s decision would affect Normandy Park residents as well.

“If we build another fire station, that is dependent on a vote from the people in Normandy Park to say, ‘Yes, we will also tax ourselves to build a station for Burien,’” Clark said.

This vote, Greenberg noted, would happen if Normandy Park voters, who are part of Fire District 2, had to go out for a bond issue to build the station, which is possible.

“I want to make it clear that there are other people besides Burien voters who would help determine the fate of a bond to build the station,” Clark stressed.

However, Deputy Mayor Jack Block Jr. said if Burien does require a new replacement fire station in Fire District 2, it would be “appropriate for King County to fund that given the potential they have for reduced costs of service.”

Greenberg also updated the council on the city’s general fund. With a full, partial or southern annexation, he said, the financial outcomes are almost the same.

The difference would be a $500,000 deficit if Burien annexes the southern area and up to a $700,000 deficit if the city partially annexes the area.

These outcomes, he continued, are the result of legislation Gov. Christine Gregoire signed March 30, giving annexing cities tax credit up to 10 years.

But there would be a $2.2 million general-fund deficit under the no annexation scenario due to additional police costs, Greenberg said.

Updating a 2004 study by Burien assessing annexation impacts, he noted that “street and surface water management funds would have positive balances.

“[The city] can easily afford extended street and surface water maintenance with our current levels of service.”

Greenberg said the fiscal analysis does not include additional city services; a detailed city capital needs study or utility district impacts.

However, a financial impact study is currently underway for Water District 20, and another was recently completed for Southwest Suburban Sewer District.

According to that study, if Seattle annexes North Highline and assumes sewer service in the annexed area, the average sewer rate there is projected to increase from $19.50 to $41.01 per month.

Rates for remaining sewer district customers outside the annexation area would increase by $16.35 a month within five years due to the loss of North Highline customers to Seattle.