AGENDA #4e

 

MEMORANDUM

 

TO:                  Mayor and Town Council

 

FROM:            W. Calvin Horton, Town Manager

 

SUBJECT:       Resolution of Intent to Consider Annexing Parkside II Area

 

DATE:             January 13, 2003

 

 

The attached resolution would call a public hearing on March 17, 2003 on annexing the Parkside II area, including abutting railroad right-of-way, shown on the attached map.  This would permit the Council to annex this area effective June 30, 2003 at 11:59 p.m.

 

ELIGIBILITY OF AREAS FOR ANNEXATION

 

North Carolina State Law (General Statute 160A-48) establishes standards that each annexation area must meet in order for that area to be qualified for a Town-initiated annexation.  In summary, these standards generally include:

 

·        having a population of at least 2.3 persons per acre, or

·        having a population of at least 1 person per acre and a high percentage of small lots, or

·        having 60% of the lots used for residential, commercial, industrial, governmental, or institutional purposes, and having 60% of total acreage subdivided into lots 3 acres or less in size, or

·        having at least 60% of the boundary of the area adjacent to any combination of the present Town Limits and the boundary of a qualified urban area.

 

For a further review of the mechanics of annexation, please see Attachment 1.

 

DISCUSSION

 

North Carolina State law (General Statutes 160A-45 to 160A-54) sets requirements for considering and acting on annexations that are initiated by the Town. 

 

Before annexing an area, the Town must either:

 

1)        Adopt a resolution identifying an area, or areas, as being under consideration for

         annexation at least one year before a "Resolution of Intent" is adopted; or

2)      If a resolution of consideration is not adopted one year in advance, then the annexation ordinance must go into effect between 1 year and 400 days after the ordinance is adopted.


 

The area proposed for annexation was included in the November 26, 2001 resolution (2001-11-26/R-13) that was adopted on that date (see Attachment 2).  Thus, the resolution of consideration covering this area was adopted more than one year before this memorandum recommending the adoption of a Resolution of Intent for this area.

 

The annexation law also provides that for each annexation area:

 

Ø                  A resolution of intent must be adopted between 45 and 55 days before a public information meeting and 60 and 90 days before a public hearing.

 

Ø         A report with plans for providing police and fire protection, solid waste collection, street maintenance, and water and sewer services in the annexation area must be approved and made available to the public at least 30 days before the public information meeting.

 

Ø         Notices of the public hearing must be mailed at least four weeks before the public information meeting to owners of properties within the area to be annexed as shown in the property tax records.

 

Ø         The annexation ordinance can be adopted not less then 10 and not more than 90 days after the hearing.

 

Ø         The annexation can be effective not less than 70 and not more than 400 days after the ordinance is adopted.

 

NEXT STEPS

 

If the Council adopts the attached resolution, the staff would prepare a Service Report for the annexation area for the Council's consideration on January 27. Notification would also be mailed to property owners at this time, in accordance with the statutes.  We anticipate that the detailed report on services to be extended will demonstrate that the projected revenues would be equal to or greater than the projected costs of extending those services.  A public information meeting would be held on March 4, 2003. A public hearing would be held on March 17, 2003.

 

Following the public hearing, the Council would have the opportunity to consider an ordinance annexing this area on April 14.  This would permit the Council to annex this area effective June 30, 2003.

 

Manager's Recommendation:  That the Council adopt the attached Resolution of Intent to consider annexing the Parkside II area and to schedule a public hearing on March 17, 2003.

 

ATTACHMENTS

 

1. Mechanics of Annexation (p. 5).

2.     Resolution Identifying Areas as Being Under Consideration for Possible Future Annexation (Town Council Memorandum, November 26, 2001) (p. 9).


 

A RESOLUTION STATING THE INTENT OF THE TOWN OF CHAPEL HILL TO CONSIDER ANNEXING THE AREA DESCRIBED HEREIN AND FIXING THE DATE OF PUBLIC HEARING ON THE QUESTION OF ANNEXATION (2003-01-13/R-4)

 

BE IT RESOLVED by the Town Council of the Town of Chapel Hill:

 

SECTION 1

 

That it is the intent of the Town Council of the Town of Chapel Hill to consider annexing the following described territory pursuant to Part 3, Article 4A of Chapter 160A of the General Statutes of North Carolina:

 

Parkside II AreaThe Parkside II subdivision and the abutting right-of-way of the State University Railroad spur of the Norfolk Southern Corporation located in Chapel Hill Township, Orange County, North Carolina.  The boundaries of the area under consideration for annexation are shown on the attached Map 1, incorporated as a part of this Resolution.

SECTION 2

 

That a public information meeting will be held in the Council Chambers of the Town Hall, 306 N. Columbia Street, Chapel Hill, N.C. 27516 at 7:00 p.m., on the 4th day of March, 2003.  That a public hearing on the question of annexing the above-described territory will be held in the Council Chambers of the Town Hall, 306 N. Columbia Street, Chapel Hill, N.C. 27516 at 7:00 p.m., on the 17th day of March, 2003, at which time plans for extending services to said territory will be explained, and all residents and property owners in said territory, and all residents of the Town of Chapel Hill, will be given an opportunity to be heard.

 

SECTION 3

 

That a report of plans for extending services to the above-described territory be made available for public inspection at the office of the Town Clerk for at least thirty (30) days before the date of said public information meeting.

 

SECTION 4

 

That a legible map of the area to be annexed and a list of persons holding freehold interests in property in the area to be annexed who have be identified, be posted in the office of the Town Clerk at least thirty (30) days before the date of said public information meeting.

 

SECTION 5

 

That notice of said public hearing shall be given by publication and first class mail, as required by North Carolina General Statute 160A-49.

 

This the 13th day of January, 2003.



 

ATTACHMENT 1

 

PLANNING DEPARTMENT STAFF REPORT

 

 

SUBJECT:               Mechanics of Annexation

 

DATE:                         January 13, 2003

 

 

Background

 

State Law provides that areas that are urbanizing or becoming urbanized should receive the urban services provided by towns and cities.  These municipal services include police protection, fire protection, garbage and trash collection, and maintenance and lighting of public streets (excluding State roads).  Annexation permits the Town to extend its boundaries and provide Town services to urbanizing areas in an orderly fashion.

 

Methods of Annexation

 

There are three primary methods that the Town may use under State Law to annex land into the Town's corporate limits:

 

•     Town-Initiated Annexation in Accordance With Statutory Standards,

 

•     Contiguous Annexation Petition, and

 

•     Non-Contiguous "Satellite" Annexation Petition.

 

The Town has annexed land using all three of these annexation.  This report provides further information on each of these annexation methods.

 

Mechanics of Annexation

 

Town-Initiated Annexation in Accordance With Statutory Standards

 

Without a petition from property owners, cities and towns with 5,000 or more people, may undertake to annex by ordinance certain areas that meet statutory standards of contiguity, population density, and intensity of development.  These annexations are subject to the following standards:


1)   The area must be contiguous.  Contiguous means any area that either abuts directly on the municipal boundary or is separated by a street, railroad, or utility corridor, by a creek or river, or lands owned by the municipality, another political subdivision, or the State of North Carolina.

 

2)   At least one-eighth (1/8) of the total boundary of the area must coincide with the municipal boundary.

 

3)   No part of the area may be within another municipality.

 

4)   Part or all of the area must be "developed for urban purposes" which is defined by any one of the following four criteria:

 

a.         Has a total resident population equal to at least 2.3 persons per acre; or

b.                  Has a total resident population equal to at least 1 person per acre, and is subdivided into lots such that at least 60% of the total acreage consists of lots 3 acres or less in size and at least 65% of the total number of lots are 1 acre in size; or

c.         Is so developed that at least 60% of the total number of lots are used for residential, commercial, industrial, institutional or governmental purposes, and at least 60% of the total of residential and undeveloped acreage consists of lots and tracts 3 acres or less in size; or

d.         Is so developed that, at the time of the approval of the annexation report, all tracts in the area to annexed are used for commercial, industrial, governmental, or institutional purposes. 

 

5)   In addition to areas developed for urban purposes, the governing body may include in the area to be annexed any area that:

 

a.         Lies between the municipal boundary and an area developed for urban purposes so that the area developed for urban purposes is either not adjacent to the municipal boundary or cannot be served by the municipality without extending services, water lines, and/or sewer lines through such area, or

b.         Is adjacent on at least 60% of its external boundary, to any combination of the municipal boundary and the boundary of an area or areas developed for urban purposes.  [For purposes of this subsection, "necessary land connection" means an area that does not exceed twenty-five percent (25%) of the total area to be annexed.]

 

In order to complete a Town-Initiated annexation, the Town must prepare a detailed service report that explains how the proposed annexation area qualifies under the State Statutes, and describes how Town services would be provided to the annexation area on substantially the same basis as areas already within the Town's corporate limits.

 


Contiguous Annexation Petition

 

The Council may annex by ordinance any area contiguous to its boundaries upon presentation of a petition signed by 100 percent of the owners of all real property located within such area.  Such annexations are subject to the following procedures and requirements:

 

1)   Essentially, any area contiguous to the corporate limits may be annexed by this method.

 

2)   An area is deemed "contiguous" if at the time the petition is submitted, the area either abuts directly on the municipal boundary or is separated from this boundary by a street right-of-way, a creek or river, a railroad, a utility right-of-way, or lands owned by the municipality, another political subdivision, or the State of North Carolina.

 

Non-Contiguous "Satellite" Petition

 

The Council may annex by ordinance certain areas whose boundaries do not at any point touch its primary corporate limits.  The primary corporate limits consists of the boundaries of the municipality as enlarged by contiguous annexations, and therefore, do not include existing "satellite areas" that are within the Town's corporate limits.  Non-contiguous "Satellite" Annexation petitions must be signed by 100 percent of the owners of all real property located within such area.  Such annexations are subject to the following standards:

 

1)   The nearest point on the satellite area must not be more than 3 miles from the primary corporate limits of the annexing city.

 

2)   No point on the satellite area may be closer to the primary corporate limits of another municipality than to the annexing city.

 

3)   Services to annexation areas must be provided on substantially the same basis as within the primary corporate limits.

 

4)   If the proposed satellite area is a subdivision, then all of the subdivision must be included in the petition.  If the proposed satellite area is a phase of a subdivision, then the entire phase of the subdivision must be included in the petition.

 

5)   The area within the proposed satellite limits plus the area within all other satellite corporate limits may not exceed 10% of the total land area within the primary corporate limits of the annexing municipality.

 

Public Information Meetings and Public Hearings

 

For each of these three annexation methods, the State Statutes require the Council to hold a public information meeting and a public hearing on the subject of annexing the proposed/petitioned area.  Notice of the public informational meeting and public hearing must be advertised in a newspaper having general circulation in the Town once a week for at least two successive weeks prior to the date of each event.  The Town usually advertises on the Friday that is ten days prior to the meeting/hearing, and on the Sunday that is one day before the meeting/hearing.  For Town-Initiated annexations, the Town also notifies all of the property owners in the proposed annexation area, as listed in County tax records.

 

Compensation to Rural Fire Departments

 

Also in accordance with the State Statutes, the Town is required to compensate any rural fire department serving the annexation area, if the annexation would result in a loss of revenue for the rural fire department.  Accordingly, the Town is required to make a good faith effort to negotiate a five-year contract with the rural fire department to provide fire protection in the area to be annexed.  Generally, the Town satisfies this requirement through a five-year agreement that compensates the rural fire department for one-half of the revenue lost due to the Town's incorporation of the annexation area, in return for the rural fire department's fire protection to the area. 

 

Town Property Taxes and Services

 

Once annexed, property owners continue to pay County property taxes for County services (such as education, public health and social services) and they pay Town property taxes for Town municipal services.  These municipal services include police protection, fire protection, regular garbage and trash collection, maintenance of public streets (excluding State roads), and use of the library, parks, recreation programs, and transit services.  The Town pays to have additional fire hydrants, street lights, and street name signs installed where they do not already exist in accord with the Town's normal service policy.

 

Annexation does not change school district boundaries.  In addition, annexation does not change mailing addresses, phone numbers, or election precinct/voting place. New Town citizens will be able to vote in Town elections, however.  Annexation may lower a homeowner's fire insurance premiums, as areas served by the Town's Fire Department have a better fire insurance rating than areas served by Rural Fire Departments.

 

Town property taxes are based on property valuations as of January 1 each year, as determined by Orange or Durham County.  The Town's property tax, however, is for the budget or service year beginning July 1 each year.  For example, property taxes that would be billed on July 1, 2003, will be used for Town services provided from July 1, 2003 until June 30, 2004.  These tax bills would be past due after January 5, 2004.  Thus, for example, property annexed with an effective date of June 30, 2003, would be billed for a full year of services (July 1, 2003 - June 30, 2004). Annexations effective at other times during the year would receive prorated tax bills based on the fiscal year, not the calendar year.