Lacey reviews annexation financial study; council directs staff to open talks with Thurston County

Burke Consulting presented a high‑level fiscal analysis of annexing portions of Lacey’s urban growth area (UGA) at the council’s May 27 work session, and council members agreed to direct staff to begin interlocal discussions with Thurston County.

The study examined 15 subareas of the UGA and estimated operating costs, staffing needs and revenues under three scenarios: no growth, development based on current buildable‑lands capacity, and historic growth rates. Consultants said ongoing general‑fund impacts were negative in all three scenarios, but the magnitude varied; sales tax on new construction and the state shared sales‑tax credit for annexation materially affect short‑term results.

"This study aims to analyze the costs and the benefits of annexation from a fiscal perspective," said Andrew Bjorn, who participated in the presentation. Catherine Getz, lead consultant, said the analysis focused on operating costs and staffing, the primary long‑term cost drivers…