It is a fair bet most Auburn residents know little about the Klump and Totem areas, including where they are.

Well, Klump is 24 parcels of land on 18.86 acres on the north end of Auburn, more familiarly known as Thomas, and Totem is 54 parcels on 16.88 acres situated on the south end. Both are in the city’s pre- annexation areas as specified by the state’s Growth Management Act.

Got it.

Here’s the rub: neither area is part of the city of Auburn. But soon, one, or both, could be.

On Monday, staff laid out to the City Council how annexation of these “islands”– encompassed by the city on three sides – would affect the residents and Auburn in terms of land use, fiscal infrastructure and the environment.

Financially speaking, the numbers say annexation would lead to increased taxes, fees and capital costs for the property owners.

For its part, the City would recognize $35,000 in new property tax revenue, $28,000 in utility and franchise fee revenue, and $19,000 in storm water revenue from the 78 parcels annually, for a total of $82,000 in new revenue. In addition to capital charges, there would be costs for each parcel to connect to the utility main once it’s built.

“Just reading over the material, it seems like we are going to put an awful lot of financial pressure on the residents in the Klump area,” said Deputy Mayor Bob Baggett, a sentiment shared by other council members.

Councilman John Holman brought the issue forward to council, he said, to preserve the City’s ability to have a say about future development in the areas, especially in Klump.

No decision has been made.

Here are some of the numbers City staff presented:

All 24 parcels in Klump are developed with existing, single-family residences. They range in size from 7,424 square feet to 87,120 square feet. All 55 parcels in Totem are also developed with existing, single-family residences, and they vary in size from 8,068 square feet to 34,055 square feet.

Financial Director Shelley Coleman said fiscal impacts to the homeowners would include a 6 percent tax on telephone, gas, power and cable and a cable franchise fee of 5 percent. While these taxes and fees are assessed against the utility businesses, utilities always pass them on to the property owner-customer, Coleman said.

Upon annexation, property owners in both areas would be subject to a fire benefit charge to the Valley Regional Fire Authority, Coleman said.

A private water system – a well – serves the Totem area, and all but two properties are on septic systems. Four parcels in the area receive City water.

Capital costs to improve the utility infrastructure amount to $600,000 for Klump and about $2.5 million for Totem, where the roads are in much worse shape. That means Totem’s roadways would require a higher level of preservation work within the next few years. This work would not include building curb, gutter, sidewalk or storm drainage facilities but only pavement preservation.

Without any grants, which are unlikely, the annual LID cost to each parcel would be about $3,900 in Totem and $2,100 in Klump over 20 years to service the debt, Coleman said.

While LIDs are the best bet to complete the utility improvements identified above, an LID would only be formed at the request of the residents; the City cannot compel their formation. The water facilities would require upgrading before, or in conjunction with, any street repairs because of the likely poor condition of the private water system.

The LID funding for utilities would include design, construction, administration and bond issuance costs. The average cost per parcel in the Totem area would be $48,204 with an annual assessment of $ 8,700 over 20 years. The average cost per parcel in the Klump area would be $25,000 with an annual assessment of $2,100 over 20 years.

Community Development Director Jeff Tate said city maps do not indicate wetlands or streams in the Klump area, which is relatively flat. The complication there, he said, is the Federal Emergency Management Agency (FEMA) draft maps, which go into effect next spring, indicate that the west side of Klump is heavily encumbered by floodplains. This feature would place an extremely heavy burden on any future application for development to comply with the Endangered Species Act and to provide compensatory flood storage capacity.

As those requirements are nearly impossible to provide on-site, Tate said, a future developer would likely have to meet those standards off-site.

According to City Attorney Stephen Gross, after a public hearing, the City Council may pass an ordinance approving annexation, which does not take effect until 45 days have passed from the date of the passage of the ordinance. After passage, the City must publish notice of the annexation under the same publication standards as above.

The residents of the area must have a chance to file a referendum petition challenging the ordinance, it must be filed with the City within 45 days of the passage of the ordinance, and it must include signatures of qualified voters living in the annexation area of no less than 10 percent of the voters who cast votes in the most recent general election. The annexation is considered to be approved by the voters unless a majority of votes cast on the proposition are opposed.

“For the south and north, as they relate to Totem and Klump, are there any financial benefits for these two groups?” asked Councilmember Largo Wales.

“The one benefit – taking out the utility tax components – the Totem area would pay about $115 less in property tax because of the levies of the City of Auburn. But the stormwater they pay the county versus the city’s stormwater is a wash. It’s just a few pennies difference,” Coleman said.

Councilmembers asked for a list of pros and cons, and will take up the issue again at a future study session.