Federal Way council debates study of annexing two nearby unincorporated areas

Federal Way City Council met in a special session April 21, 2026 to consider launching a formal study of potential annexation of two large unincorporated "islands" adjacent to the city.

City Administrator Brian Davis said the study would evaluate why the city and King County are pursuing annexation—citing more efficient delivery of government services, alignment with the county and city comprehensive plans, and the city’s ability to set growth and zoning. "Why Annex? Why is the city contemplating or interested in annexing," Davis said as he opened the presentation, outlining petition, election and interlocal agreement methods for annexation.

Davis showed maps staff provided of the areas designated as Federal Way’s potential annexation areas and said the city (currently about 24 square miles) could expand by roughly seven square miles (about 4,480 acres). He said existing land uses in the areas are largely single-family residential with some commercial, multifamily and vacant parcels.

Staff said the likely procedural path would be an interlocal agreement with King County, a method enacted by the state legislature in 2021 that lets jurisdictions coordinate the transfer of territory and divide assets and taxing authority. Davis described that approach as the city’s best estimate of a workable path forward and said substantial financial and service analyses would be required before any ordinance or election.

Council members pressed staff for specifics. On service needs, Davis said the city would need to add staff across departments if the annexation proceeds: "we would obviously need to hire more ... more police officers, more road crews, more planners," he said, adding that staff estimates put the population increase between about 20,000 and 25,000 residents. On timing and funding, Davis warned that any state tax-credit transition funding would not arrive until July of the fiscal year after annexation becomes effective.

Council members also focused on housing and planning implications. City planning staff told the council that existing housing targets are set under the Growth Management Act; the planner said, "11260 is our growth target in the next 20 years," and that annexing the areas would not simply eliminate the annexation areas’ own housing obligations but would be considered together with the city’s needs.

Council members asked practical questions about parks and infrastructure. Davis said parks now under county jurisdiction would generally be expected to transfer to the city and named Five Mile Lake as an example discussed during questions, and he said some properties are on sewer while others remain on septic; septic systems can remain in place if properly maintained but the study will clarify infrastructure needs.

On cost and procurement, staff estimated a consultant study would cost about $75,000 and said vendor selection and a finance-committee review would follow this session. Several council members said they were not being asked to vote on annexation tonight but rather whether to authorize the study and outreach planning. Staff asked the council for a head nod to proceed with the study and to return with findings and an outreach plan prior to any final decision.

The session closed with the council moving into a brief executive session. No formal annexation ordinance or council vote to annex was taken at the meeting; staff said it would return with a detailed study, financial analyses and an outreach plan for residents in the affected areas.

Sources: Remarks and Q&A with Brian Davis, city administrator; questions and comments by Council President Honda, Council Members Sepidosa, Moore, Walsh, Coach Mark, Sephawson and Hamilton; staff planner (Keith).