According to the June 27 Times/News, the new Berk & Associates financial analysis program will enable our Council to make realistic financial projections regarding annexation. Let me hasten to throw cold water on that notion: it will not do any such thing.
This program is flawed in the same way that the prior Burien budget analysis was flawed. It omits the Capital Budget. The budget is the sum of two roughly equal components, the General Fund and the Capital Fund.
Projected budget deficits for annexation reside largely (90 percent) in the Capital Fund. Omission of the Capital Fund from the analysis systematically underestimates future deficits to a significant and alarming degree.
Even without the Capital Budget, core figures show the Burien annexation deficit at $7.8 million in 2025, 40 percent larger than for Seattle annexation. Of even greater concern is the rate of growth of the shortfall, which is also approximately 40 percent greater than for Seattle annexation.
Addition of Capital budget deficits show Burien headed straight into bankruptcy at a far greater rate than could have been imagined. A $6 million deficit today will expand to $17 million in 2025. The total annual deficit then would be approximately $25 million.
The other missing component to rational analysis is for Police services. It is commonly considered that the driving force for annexation is additional Police costs, yet there is no study available on this, and none has been ordered.
In a rational system, the necessary data on a proposal is gathered for analysis and debate before a decision is made. The Burien Council has, instead, made the decision first and hopes that supporting information can be produced to justify their decision.
Our only hope for rescue from this folly lies with the Growth Management Board and the Boundary Review Board, in whose hands the fate of this city lies.
Ron Seale, President
Burien Residents
Against Annexation