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HomeMy WebLinkAboutIR 8586 ^ o INFORMAL REPORT TO CITY COUNCIL MEMBERS No. 8.586 April 6, 2004 et AD To the Mayor and Members of the City Council Page I of 2 -eo..) 187,3 SUBJECT: DRAFT ANNEXATION POLICY In response to a City Council request, an interdepartmental working group has assessed the extent to which the City's current annexation policy effectively furthers the strategic goals in the Comprehensive Plan. On the basis of that assessment, staff has been preparing a draft annexation policy that would: • Provide the City Council with more specific, objective, and prescriptive guidance for making annexation • Enable the City to be more proactive in identifying areas for annexation by providing for an annually updated five-year annexation program; and • Provide for meaningful public participation in formulating the annexation program as part of the annual update of the City's Comprehensive Plan. On January 20, 2004, the City Council authorized staff to seek public comments on a draft annexation policy. From January 26 to February 20, staff provided briefings to seven community groups. During this time, staff also solicited comments from affected county governments. Staff then provided the following briefings for city and county officials on the results of those community meetings: February 25—City Plan Commission March 2 —Tarrant County Commissioners Court March 11 — City Council's Capital Improvement and Infrastructure Committee and Central City Revitalization and Economic Development Committee Staff has summarized the comments received from the various community meetings and from Tarrant County into two broad categories: (a) comments that clarify or enhance the draft annexation policy, and (b) comments that relate to basic policy issues. Generally, the clarification and enhancement comments call for the City to: • Clarify terms contained in the draft annexation policy, such as: enclave, option to expand, adverse impacts, five-year program and three-year annexation plan. • Provide more detailed information on fiscal impact analysis procedures, timeframes, and findings. • Outline services provided to annexed areas and consider impacts to areas within existing city limits. • Communicate effectively with citizens, affected property owners, and local government agencies during the annexation process. Staff generally concurs with the clarification and enhancement comments and, accordingly, has prepared a second draft of the proposed annexation policy; see Exhibit A attached hereto. The comments related to basic policy issues request that the City: Consider property owner support for proposed annexations by methods such assigned petitions and votes by affected property owners and residents of the City. rP Reserve City-initiated annexation for emergency situations and not pursue limited-purpose annexations. ISSUED BY THE CITY MANAGER FORT WORTH, TEXAS INFORMAL REPORT TO CITY COUNCIL MEMBERS NO- 8586 April 6, 2004 To the Mayor and Members of the City Council Page 2 of 2 (O►T 107% SUBJECT: DRAFT ANNEXATION POLICY • Consider adverse financial impacts on proposed annexation areas and utillize an independent third party to conduct fiscal impact analyses. • Provide services to an area immediately upon annexation while ensuring that the same services are being adequately provided within existing city limits. • Offer options that allow residents affected by annexation to continue rural lifestyle activities and programs so as to help alleviate the financial burden associated with annexation. In view of the many complex policy issues that surfaced during the community meetings, staff has recommended that the Mayor appoint an ad hoc Annexation Policy Advisory Committee. This committee would review the draft annexation policy, review citizen comments and staff responses, and advise the City Council on pertinent policy issues before City officials begin to conduct any public hearings. Staff is recommending the following schedule for review and adoption of the proposed annexation policy: DATE ACTIVITY Adviso Committee Review April 6 Mayor appoints Advisory Committee to review draft policy, citizen comments and staff responses, and to make appropriate recommendations. April and May Advisory Committee holds multiple work sessions. June 8 Adviso!y Committee briefs City Council on its recommendations. Formal Review and Adoption June 23 City Plan Commission conducts public hearing on annexation policy and votes to recommend approval. Central City Revitalization and Economic Development Committee and Capital July 13 Improvement and Infrastructure Committee receive briefings on City Plan Commission recommendation. July 20 City Council receives briefing or informal Report on recommended annexation policy. August 6 City Council conducts public hearing on annexation policy. August 10 City Council votes on resolution to adopt annexation policy. Should you have any questions regarding the draft annexation policy, please contact Fernando Costa, Planning Director, at 817-392-8042. "ry Jack City Mnager Attachment ISSUED BY THE CITY MANAGER FORT WORTH, TEXAS EXHIBIT A 3130104 DRAFT—For discussion purposes only DRAFT ANNEXATION POLICY 'l I. PURPOSE AND INTENT The City of Fort Worth seeks to annex property within its extraterritorial jurisdiction for the following purposes: • To create a safe,clean, and attractive city by providing municipal adequme effiefgeney services, and by applying appropriate land use regulations,development standards, property maintenance standards, fire codes, construction codes and environmental regulations. • To diversify the economic base and create job opportunities by annexing property for commercial and industrial development. • To promote orderly growth by facilitating long-range planning for the provision of municipal services. To fulfill these purposes, the City has formulated this annexation policy in order to: • Provide the City Council with more specific, objective, and prescriptive guidance for making annexation decisions. • Enable the City to be more proactive in identifying areas for annexation by providing for an annually updated five-year annexation program. • Provide for meaningful public participation in formulating the annexation program as part of the annual update of the City's Comprehensive Plan. 11. DEFINITIONS Annexation—The legal process by which a city extends its boundaries. A city may annex property only within its extraterritorial jurisdiction, unless the city owns the area. Annexation Plan —A document required by Texas Local Government Code, Section 43.052, identifying certain kinds of areas that a city intends to annex. 1. The plan must identify any areas with 100 or more separate lots or tracts of land containing residential dwellings that the city intends to annex,unless more than 50 percent of the property owners request annexation. 2. The plan may also identify other areas. 3. Areas that are identified in the plan may only be annexed three years after the plan is adopted. Annexation Policy—A set of guidelines for making annexation decisions. Annexation Program—An annually updated document identifying areas that the City wishes to consider for initiation of annexation during the succeeding five-year period v�^* ia five years. The annexation program expresses the City's intent to consider specific areas for annexation, but is not legally binding. Inclusion of an area in the program does not obligate the City to annex that area, nor does exclusion of an area from the program prevent the City from annexing the area. Certificate of Convenience and Necessity—A utility service area permit authorizing a specified utility to be the sole service provider. Disannexation—The legal process by which a city removes an area from its boundaries. EXHIBIT A 3/30/04 DRAFT—For discussion purposes only Enclave— An area within the City's extraterritorial jurisdiction that is surrounded by the corporate limits of the City of Fort Worth and/or the corporate limits or extraterritorial iurisdiction of other municipalities. Extraterritorial Jurisdiction (ETJ)—Unincorporated area extending generally five miles from the city limit, excluding other incorporated municipalities and their ETJ, in which the City has the authority to annex property. Full Municipal Services—Services provided by an annexing municipality within its full- purpose boundaries, including water I V ter and wastewater services and excluding as or electrical service. The City of Fort Worth provides the following services, including but not limited to: fire;and police protection; emergency medical services; access to water and wastewater services unless such services are provided by another utility; solid waste collection; operation and maintenance of parks,publicly-owned facilities,and streets; library services; drainage and storm sewer maintenance; enforcement of environmental health, zoning and subdivision ordinances; enforcement of building and construction codes; and inspection services. Full-Purpose Annexation—The legal process for annexing an area in order to provide full municipal services. The city enforces all ordinances,provides services as provided by law, and assesses property taxes and sales taxes. Growth Center—An area that contains, or has the capacity to contain, compact, higher intensity urban land uses, as designated by the City Council in the City's Comprehensive Plan. There are two types of growth centers: • Mixed-Use Growth Centers—A highly urbanized phase area that has many characteristics of a downtown: a concentration of jobs,housing units,schools,parks,and other public facilities,public transportation hubs, pedestrian activity and a sense of place. This mix of uses supports sustainable development,which seeks to balance access,mobility,affordability,community cohesion,and environmental quality. * Industrial Growth Center—An area consisting primarily of industrial and commercial uses,with a high concentration of jobs,mostly industrial in nature.Other related and supporting uses include office space and services, Unlike mixed-use growth centers,residential uses are generally discouraged within industrial growth centers. Infrastructure—Facilities necessary to provide city services, usually referring to physical assets such as streets and utility lines. Limited-Purpose Annexation—The legal process for annexing an area in order to provide certain regulatory services. Cities with populations of more than 225,000 have the authority to annex for limited purposes. Cities may enforce planning,zoning, health and safety ordinances in areas annexed for limited purposes, but do not collect property or sales taxes or provide full municipal services. Residents may vote in city council elections and charter elections,but may not vote in bond elections or be elected to a city office. Long-Term Development—Planned construction of residential, commercial and/or industrial uses that is anticipated to occur beyond a three-year timeframe. Municipal Utility District—A political subdivision providing water, sewerage, drainage and/or other municipal services within a specified geographic area. EXHIBIT A 3130104 DRAFT—For discussion purposes only Planning Study—A document prepared by a municipality, pursuant to Section 43.123 of the Texas Local Government Code, prior to annexing an area for limited purposes, which identifies projected development; the need for annexation; the impact of annexation on surrounding residents, landowners, and businesses; and the proposed zoning of the area. Regulatory Plan —A document adopted by the City Council,pursuant to Section 43.123 of the Texas Local Government Code, at the time an area is annexed for limited purposes, which identifies the planning, zoning, health and safety ordinances that will be enforced in the area and states the date by which the city will annex the area for full purposes. Service Plan—A document adopted by the City Council, pursuant to Sections 43.056 and 43.065 of the Texas Local Government Code, describing the schedule for a municipality to provide full municipal services to an area annexed for full purposes. On the effective date of annexation, a municipals!y must provide: police and fire protection, emergency medical services; solid waste collection; operation and maintenance of water and wastewater facilities in the area that are not within the service area of another water or wastewater facility; and operation and maintenance of roads and streets (including lighting), parks, playgrounds, swimming pools and other publicly owned facilities, buildings or services if those services are provided by the municipality within its corporate boundaries. Cei4ain ser-Viees, ineluding peliee and fif-e pr-eteetion, must be effective on the date of annexation. OthefA municipality must provide full municipal services, which means all services provided within the city including water and wastewater services, within 2'/2 years after annexation but may extend the deadline to 4'/z years after annexation for services that cannot reasonably be provided within 2'/2 years. Urban Development—Development requiring water, sewerage and other municipal services to I rr promote public health, safety and welfare. It may include residential development with a density equal to or greater than one dwelling unit per acre, as well as commercial and industrial development. 111. ANNEXATION CRITERIA A. Full-Purpose Annexation The City will consider full-purpose annexation for of any area within its extraterritorial jurisdiction if and only if the area meets one or more of the following five eonditio criteria: 1. Enclave: The area is an enelave, and thus the City and its eifizens would benefit from legioal eity limmit betmdar-y that pr-oAdes feF the orderly and effieiepA provision 0 sefviees. meets both of the following conditions: a. The area is an enclave and the City and its citizens would benefit from a logical city limit boundary that provides for the orderly and efficient provision of services, and b. The City is able to provide municipal services upon annexation in accordance with State law, without negatively impacting service provision within the city. 2. Urban Development: The area meets all three of the following conditions: a. The City is aware of or anticipates development activity of an urban nature in the area; and b. The City is able to provide municipal services upon annexation in accordance with State law, without negatively impacting service provision within the city; and EXHIBIT A 3130104 DRAFT-For discussion purposes only c. The City has determined through an appropriate analysis of prospective revenues and expenditures, as described in section IV (Preparation of Fiscal Impact Analysis) below, that cumulative revenues will exceed cumulative expenditures for each affected budget fund over the 10-year period immediately following annexation,or over a longer period as appropriate for long-term development. 3. Growth Center: The area meets all three of the following conditions: a. The area encompasses a designated growth center and thus requires urban services to develop as planned; and b. The City is able to provide municipal services upon annexation in accordance with State law, without negatively impacting service provision within the city. c. The City has determined through an appropriate analysis of prospective revenues and expenditures, as described in section IV (Preparation of Fiscal Impact Analysis) below,that cumulative revenues will exceed cumulative expenditures for each affected budget fund over the I 0-year period immediately following annexation, or over a longer period as appropriate for long-term development. 4. Adverse Impact: The area meets both of the following conditions: a. Without annexation,potential development activity is likely to have an adverse fiscal or environmental impact on the City due to unregulated land uses and the City's inability to enforce development standards, building codes and environmental regulations-:; and b. The City is able to provide municipal services upon annexation in accordance with State law, without negatively im2acting service provision within the city, 5. Option to Expand: The area meets both of the following conditions: a. Without annexation, interested parties gja -afea!&enne*ation-NouJ4fweseFve the City's option to empand its corporate boundaries by preventing the incorporateien of one or more separate municipalities or take other legal actions that might be detrimental to the City's orderly growth. b. The City is able to provide municipal services upon annexation in accordance with State law, without negatively impacting service provision within the city. In accordance with Sections 43.056 and 43.065 of the Texas Local Government Code, the Development Department shall prepare a service plan that provides for the extension of MI municipal services to each area to be annexed for full purposes-,. The Development Department shall prepare the service plan after the City Council establishes the annexation timetable and shall make the plan available to the public for review and comment in advance of required public hearings. The City shall adopt the service plan by ordinance at the time the City annexes the area for full purposes. B. Limited-Purpose Annexation The City will consider limited-purpose annexation of any area if one or more of the five eenditions criteria in section A (Full-Purpose Annexation) above are met, and if either of the following two conditions criteria is also met: 1. Populated Area: The area contains 100 or more separate lots or tracts of land containing residential dwellings and thus must be included in the municipal annexation plan three years prior to full-purpose annexation per State law. The area would be considered for EXHIBIT A 3130104 DRAFT—For discussion purposes only limited-purpose annexation so that the City might control land use and the quality of development in that populated area, pending full-purpose annexation. 2. Long-Term Development: The area is proposed for long-term development. The City will determine the feasibility of entering into an agreement with the property owner(s) for limited-purpose annexation so as to establish the timing of full-purpose annexation. The agreement may provide for the property to be annexed for full purposes in phases. In accordance with Section 43.123 of the Texas Local Government Code, the Development Department shall prepare a planning study and a regulatory plan regarding the proposed annexation of an area for limited purposes, and make the documents available to the public for review and comment in advance of required public hearings. The City shall adopt the regulatory plan by ordinance at the time the City annexes the area for limited purposes. C. General Provisions The following provisions apply to all proposed full- and limited-purpose annexations: 1. As a prerequisite for any proposed annexation, the City Manager shall certify that the proposed annexation would have no adverse effect upon the provision of municipal services within the City. 2. The City will annex any rights-of-way that are adjacent to and provide access to annexed propgAL. IV. DISANNEXATION In accordance with Section 43.141 of the Texas Local Government Code, a majority of the qualified voters of an annexed area may petition the City Council to disannex the area if the City fails to provide services to the area within the period specified by the service plan. Similarly, the City may seek to disannex an area if it determines that it is unable to provide municipal services to that area in accordance with State law. V. PREPARATION OF FISCAL IMPACT ANALYSIS For any proposed annexation, the Budget Office, in cooperation with other pertinent departments, shall conduct a fiscal impact analysis that considers prospective revenues and expenditures for both the General Fund and the Water and Sewer Fund. The Budget Office shall prepare a fiscal impact report for review by the City Council, and shall make such report available far public review upon request. A. Revenues The following revenues shall be considered: 1. Property taxes to be generated by existing land uses, based on Tarrant Appraisal District assessed values and the City's current property tax rate. 2. Property taxes to be generated by proposed land uses, based on anticipated assessed values and the City's current property tax rate. 3. Estimated development pefmit fees, if applieable. EXHIBIT A 3130104 DRAFT—For discussion purposes only 34. Sales taxes. 45. Other General Fund revenues including: Other Local Taxes, Licenses and Permits, Fines and Forfeitures, Use of Money and Property, Service Charges, and Other Revenue. 56. Water and wastewater tap and impact fees. 6-7. Water and wastewater service fees. B. Expenditures The following expenditures shall be considered: 1. Operation and maintenance costs for all municipal services 2. Required capital improvements C. Analysis Timeframe The number of years in the analysis shall be based on the estimated build-out of the development, the repayment timetable for any debt assumed in the analysis, or 10 years, whichever is longer. D. Per Capita Data Sources For budget information, the most recently adopted Annual Budget shall be used. For total population and land use data, the most recently adopted Comprehensive Plan shall be used. E. Population Estimate To estimate population for an area, the number of housing units proposed for construction or annexation shall be multiplied by the average household size for Fort Worth, or for a comparable area within Fort Worth, according to the latest U.S. Census. F. Methodology 1. Areas with Existing or Proposed.Development: If an area is fully developed, or substantially undeveloped but subject to an approved concept plan and/or preliminary plat, the analysis shall be based on the following guidelines. a. For any undeveloped areas, the anticipated rate of development shall be based on the construction timetable provided by the property owner. b. Sales tax revenues and other General Fund revenues(item A 45 above) shall be estimated on a per capita or per acre basis, as appropriate. c. Water and wastewater revenues shall be based on existing land uses and any proposed land uses provided by the property owner. d. Expenditures shall be estimated on a per capita,per acre, or per linear foot basis, as appropriate, unless actual costs can be determined. 2. Other Areas: If an area is undeveloped and not subject to an approved concept plan or preliminary plat, the analysis shall be based on the following guidelines. a. The mix of residential and eemmer- land uses shall be eensistent as depicted in the Comprehensive Plan. b. The anticipated rate of development shall be based on the annual growth rate for the pertinent planning sector of the city. c. Sales tax revenues and other General Fund revenues(item A 45 above) shall be estimated on a per capita or per acre basis, as appropriate. EXHIBIT A 3130104 DRAFT—For discussion purposes only d. Water and wastewater revenues shall be based on the future land uses identified in the Comprehensive Plan. e. Expenditures shall be estimated on a per capita, per acre, or per linear foot basis, as appropriate, unless actual costs can be determined. G. Timing for Preparation of Fiscal Impact Analysis 1. -Annexations I-aiiiated by Property Owners: Upon receipt of a valid annexation petition and application, the Budget Office shall conduct the fiscal impact analysis within 30 days and prior to the City Council public hearing on establishing the annexation timetable. As an alternative. the City will verify the accuracy of the fiscal impact analysis submitted by the property owners prior to initiating the annexation process. 2. Annexations Init_Laq%=d==b =y,the City: The City will conduct the fiscal impact analysis prior to schedulinp,the required City Council public hearing on establishing the annexation timetable. VI. PREPARATION OF FIVE-YEAR ANNEXATION PROGRAM The Planning Department, in cooperation with the Development Department and other pertinent departments, shall prepare an annexation program that identifies areas that the City wishes to consider for initiation of annexation A4�in five yeafs during the succeeding five-year period—, and vAll update the program as paf4 of the am" update of the Cempr-ehensive—�. The five-yeas annexation program shall be incorporated into the City's Comprehensive Plan, and revised as part of the annual update. The program will estimate the year in which each pro-posed annexation might occur. In preparing its capital improvement program and annual operating budget, the City shall determine the feasibility of providing municipal services to areas identified in the annexation program. The City shall involve property owners and community organizations from the extraterritorial jurisdiction, as well as those from the City itself, in formulating the five-year annexation program. Upon request, the City's Community Relations Department will assist affected property owners in establishing a neighborhood organization prior to the annexation of an area. In formulating the annexation program, the City shall assign priority to annexing areas that are located within the geographic scope of its Certificate of Convenience and Necessity (CCN), within the geographic scope of another CCN that complies with the City of Fort Worth's standards for water and wastewater infrastructure, or within a Municipal Utility District that complies with such standards. Inclusion of an area in the five-year annexation program does not obligate the City to annex that area. Similarly, exclusion of an area from the five-year annexation progyam does not prevent the City from annexiny,the area. VII. PREPARATION OF THREE-YEAR ANNEXATION PLAN In accordance with Section 43.052 of the Texas Local Government Code, the City of Fort Worth shall amend its annexation plan to identify certain areas that the City intends to annex. The EXHIBIT A 3130104 DRAFT—For discussion purposes only annexation plan must include c-entain any proposed annexation area with that contains 100 or more separate lots or tracts of land containing residential dwellings. An area identified min the plan may only be annexed beginning on the third anniversary of the date the plan is amended fer to include that area. Upon adoption of the five-year annexation program, the Planning Department shall identify those areas with 100 or more separate lots or tracts of land containing residential dwellings and schedule necessary amendments to the annexation plan The three-year annexation Man will not necessarily contain all the areas that are included in the five-year annexation grogram. VIII.EXTERNAL COMMUNICATION In addition to public hearing requirements established by Sections 43.0561 and 43.124 of the Texas Local Government Code, the City of Fort Worth shall seek to communicate with City residents, affected property owners and pertinent government agencies throughout the annexation process. The City shall seek to engage interested parties in formulating the annexation program and in any formal annexation process. The City will explain the benefits of annexation, including full municipal services and its planning, zoning, health and safety regulations. Upon adoption of any annexation ordinance the City shall notify the pertinent county government agencies and affected property owners.