Annexation Frayda Bluestein Annexation is a Hot Topic Why? 1 - - PDF document

5/3/2016 1

Annexation

Frayda Bluestein

Annexation is a Hot Topic Why?

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Annexation Process Before 2011

• Four statutory methods:

– Voluntary contiguous (100% petition required) – Voluntary satellite (100% petition required) – Involuntary by cities under 5,000 (urbanization standards/service requirements) – Involuntary by cities 5,000 or more (urbanization standards/service requirements)

• Legislative annexation/deannexation by

local act (no standards or requirements apply)

Voluntary Annexation (by Petition)

• Contiguous: Petition signed by 100% of

property owners.

• Board has discretion to approve or deny.
• No standards for character of the property
• ther than contiguity.
• Services must be provided to the same

extent and under same policies as in the existing corporate limits.

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Satellite Annexation (by Petition)

• Satellite: Petition signed by 100% of

property owners.

• Board has discretion to approve or deny.
• Limits on size and distance from annexing

city and another city.

• Can’t annex part of a subdivision.
• Services must be provided to the same

extent and under same policies as in the existing corporate limits.

Annexation by Petition New Provisions

• City must annex if petition from owners of 75% of

property in high poverty area

– High poverty: 51% of households have incomes 200% or less than the current federal poverty threshold – Area must have 1/8 contiguity; may not exceed 10%

• f existing population

– Must provide water and sewer to annexed area – Obligation may be relieved if cost of providing services exceeds capacity as defined in the statute

• City may annex upon petition of 2/3 of residents in

high poverty (“distressed”) area

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Challenging Voluntary Annexations

• The courts have allowed challenges only

by persons owning land in the annexation area or cities attempting to annex some or all of the same territory.

• They have denied standing to city

residents, neighbors of the annexation area, or cities not attempting to annex the same territory.

Clerk’s Role in Annexation

• Verify sufficiency of petition; property

description; signatures

• Schedule public hearing
• League of Municipalities Resource:

Mechanics of Annexation

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Involuntary Annexation (City Initiated)

• Contiguous; 1/8 requirement
• Not in another city
• Meets urbanization standards or is a donut

hole

• Must extend water and sewer (if water and

sewer is provided in the city)

• Approved by voters in the area to be

annexed

Current Law: Requires Voter Approval

• Annexation does not become effective

unless approved by a majority of voters in the area to be annexed.

• Referendum must occur at a general

municipal election (odd-numbered years)

• Municipality bears cost of election
• If rejected, no annexation for for 3 years

S.L. 2012-11 (HB 925)

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Water and Sewer

• If the city provides or contracts to provide

services, must allow property owners to request service to their property

• Must provide notice of right to request service
• Must extend to all properties who request it at

no cost other than user fee

• Must complete construction within 3.5 years
• f annexation effective date
• Property owners who choose to receive

services later may be charged based on graduated schedule set out in statute

Urbanization Standards

• Population density
• Density and Subdivision
• Use and Subdivision Test
• Nonresidential Urban Uses
• Necessary Land Connections (formerly

“subdivision (d)” areas)

• Donut holes

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Population Density Standard

There must be a resident population

• f at least 2.3 people per acre

Density and Subdivision Standard

• Density Test

– A resident population

• f at least 1 person per

acre

• Subdivision Test

– 60% of total acreage in lots or tracts of 3 acres or less; and – 65% of lots and tracts are 1 acre or less in size

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Use and Subdivision Standard

Use Test

60% of the lots and tracts must be in an urban use

• Residential
• Commercial
• Institutional
• Industrial
• Governmental

Subdivision Test

60% of the residential and nonurban acreage must be in lots and tracts

• f 3 acres or less

Nonresidential Urban Uses Standard

• Every lot or tract must be in one or

another of the following uses:

– Commercial – Industrial – Governmental – Institutional

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Subsection (d) Areas

• Cities can include nonurban subareas if they

qualify under G.S. 160A-48(d).

• At least 60% of the external boundary of the

subarea is coincident with a combination of city boundary and boundary of the remaining annexation area.

• These areas cannot exceed 25 percent of the

total annexation area.

Exemption for Farms

• Land used for farm purposes (broadly

defined) may not be annexed without the

• wner’s written consent

– S.L. 2011-363 (HB 168) – Eliminates prior provisions regarding annexation of present use value property. – If consent is obtained, property is considered to be in the city for all purposes.

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Plans for Provision of “Major” Municipal Services

• Police
• Fire
• Solid waste collection
• Street maintenance
• Water
• Sewer

Exceptions to Service Requirements

• If a city is not providing a service, it need

not provide it to the annexation area

• If there is an existing, comparable service

provider in the area, the city need not duplicate that service

• If topography makes sewers very

expensive, the city may maintain septic tanks instead

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Existing Fire Service

• The city must attempt to contract with a

rural fire department for five years. The rural department’s service satisfies the city’s service requirement.

• The city must pay a proportionate share of

the fire department’s debt.

Solid Waste Collectors

• The city is required to

protect existing private solid waste collectors by either:

• Contracting with the

collector for two years, or

• Paying the collector 15

months worth of revenues

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Fighting for Priority

• Priority goes to the unit that starts first:

Voluntary: Valid petition Involuntary: Adoption of valid resolution of intent

Annexation Agreements

Cities may agree to establish “spheres of influence” in which each city may annex

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Possible Effects on Recent Changes

• Fewer involuntary annexations
• Higher rates and increased fees for

nonresident customers

• Change in approach to ETJ
• Splintered service delivery in

unincorporated areas

• Decrease in tax revenue to maintain city

services used by city and county residents

Possible opportunities

• Increased cooperation through interlocal

agreements and consolidation

• Increased use of voluntary annexation as

a condition of receiving services

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Legislative Annexation/Deannexation

• Legislature always has authority to modify

city and county boundaries.

• Statutory requirements do not apply to

legislative actions.

• Cities have no authority to deannex. This

can only be done by the legislature.

Resources on Annexation

• Annexation Law in North Carolina; David
• M. Lawrence

– NOTE: This publication predates the changes in the involuntary annexation procedures but is still current for most aspects of the annexation process.

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Coates’ Canons Local Government Law Blog – Annexation Posts

• Annexation Reform: Referendum

Replaces Petition to Deny

• Annexation Reform (Summary of 2011

Changes)

• Water and Sewer Connections “At No

Cost”

• Deannexation
• Special Status of Bona Fide Farms