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HomeMy WebLinkAboutIR 8617 INFORMAL REPORT TO CITY COUNCIL MEMBERS No. 8617 July 20, 2004 To the Mayor and Members of the City Council Page 1 of 2 fly's SUBJECT: PROPOSED ANNEXATION POLICY In the fall of 2003, the City Council requested that staff assess the extent to which the City's current annexation policy effectively furthers the strategic goals in the Comprehensive Plan. Based on that assessment, City staff has been working to update the City's annexation policy in order to provide more specific guidance for making annexation decisions and to promote more meaningful citizen participation during the annexation process. City staff prepared a draft annexation policy and provided briefings on that draft for various community groups and pertinent county governments. On April 9, Mayor Moncrief, in consultation with the City Council, subsequently appointed the Annexation Policy Advisory Committee to review the draft annexation policy and to provide guidance to the Council. The Advisory Committee met for six weeks to address various policy issues, conducted a public forum to receive citizen comments, and presented a recommended policy to the Council on June 8. On June 23, the City Plan Commission conducted a public hearing and voted to endorse the recommended policy (Exhibit A). The proposed annexation policy: • Provides the City Council with specific and objective criteria for making annexation decisions. • Provides for preparation of a five-year annexation prociram that identifies areas the City wishes to rconsider for annexation. 1r , Provides the City and affected property owners, through the annexation program, with an appropriate transition period by delaying certain City-initiated annexations for three or more years. • Improves external communication by holding additional public information meetings and soliciting comments from affected property owners, existing city residents and pertinent local government agencies prior to initiating formal annexation hearings. • Gives protesting property owners the opportunity to participate in negotiations related to the provision of municipal services. At their July 13 meetings, the City Council's Capital Improvement and Infrastructure Committee (CIIC) and Central City Revitalization and Economic Development Committee (CCREDC) authorized staff to schedule a public hearing on the proposed policy at the City Council's next available evening meeting. Members of the ClIC and CCREDC also provided four comments relating to fiscal impact analysis, the effect of annexation on the provision of services to existing City residents, and the necessity of holding additional public hearings. • The first comment was a suggestion that the annexation policy address the total cost of annexation. The proposed policy addresses this concern by including a detailed section on the preparation of fiscal impact analysis (Section V). This section defines the revenues, expenditures, timeframe, per capita data sources, and population estimates that are to be considered in the fiscal impact analysis, and also prescribes the methodology by which the City is to conduct the analysis. • The second comment was a suggestion that an independent third party prepare the fiscal impact analysis. The proposed policy addresses this concern by including a provision (Section III.D.3) that requires the City, at the request of affected property owners through a protest petition, to hire an independent certified public accountant to conduct a third-party fiscal impact analysis for certain City- r'Wr ' initiated annexations. ISSUED BY THE CITY MANAGER FORT WORTH, TEXAS - INFORMAL REPORT TO CITY COUNCIL MEMBERS No- 8617 July 20, 2004 To the Mayor and Members of the City Council Page 2 of 2 1417% SUBJECT: PROPOSED ANNEXATION POLICY • The third comment was that annexation could inadvertently reduce the level of service provided to existing City residents. The proposed annexation policy addresses this concern in the Annexation Criteria and Procedures Section (Section 111). Each of the five criteria for full-purpose annexation contains a condition that the City must be able to provide municipal services upon annexation without negatively impacting service provision within the City (Section III.A). In addition, as a prerequisite for any proposed full- or limited-purpose annexation, the City Manager is to certify that the proposed annexation would have no adverse impact on the provision of municipal services within the City (Section III.C.1). • The fourth comment was a suggestion that the City Council may wish to hold more than one public hearing to receive citizen comments on the proposed annexation policy. The City Council will make this decision after the August 5 public hearing. In response to requests from both committees, staff has scheduled a City Council public hearing on the proposed annexation policy for Thursday, August 5, during the regular Council meeting. Pending a decision by the City Council as to whether or not to hold additional public hearings, staff will place an M&C on the August 10 Council agenda to approve a resolution adopting the annexation policy and incorporating the adopted policy into the City's Comprehensive Plan. "0") Should you have any questions regarding the proposed annexation policy, please contact Fernando Costa, Planning Director, at 817-392-8042. City Jac o V/ City Manage4r Attachment ISSUED BY THE CITY MANAGER FORT WORTH, TEXAS EXHIBIT A 7115104 DRAFT—As recommended by the City Plan Commission DRAFT ANNEXATION POLICY I. PURPOSE AND INTENT The City of Fort Worth seeks to annex property within its extraterritorial jurisdiction for the following purposes: • To promote orderly growth by facilitating long-range planning for the provision of municipal 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 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. II. 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. 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. tl " Enclave—An area within the City's extraterritorial jurisdiction that is surrounded by the corporate limits of the City of Fort Worth andlor the corporate limits or extraterritorial jurisdiction of other municipalities. EXHIBIT A 7115104 DRAFT—As recommended by the City Plan Commission Extraordinary Economic Development Project—A commercial or industrial project that is eligible for property tax abatement under the City's tax abatement policy as set forth in the Comprehensive Plan. y 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 and wastewater services and excluding gas 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 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 rnix 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 only certain regulatory services for a specified period of time. Cities with populations of more than 225,000 have the authority to annex property 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. �Jy 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 2 EXHIBIT A 7115104 DRAFT—As recommended by the City Plan Commission projected development; the need for annexation; the impact of annexation on surrounding residents, landowners, and businesses; and the proposed zoning of the area. Protest Petition —A statement expressing opposition to a proposed City-initiated annexation and containing the signatures of property owners representing 50 percent or more of the parcels within the territory to be annexed and 50 percent or more of the land area within that territory. 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 municipality 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. A municipality must provide full municipal services, which means all services provided within the city including water and wastewater services, within 2'/Z years after annexation but may extend the deadline to 4'/2 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 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. III. ANNEXATION CRITERIA AND PROCEDURES A. Full-Purpose Annexation The City will consider full-purpose annexation of any area within its extraterritorial jurisdiction if and only if the area meets one or more of the following five criteria: 1. Enclave: The area 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 c. The City has determined through an appropriate analysis of prospective revenues and expenditures, as described in Section V (Preparation of Fiscal Impact Analysis) 3 EXHIBIT A 7115104 DRAFT—As recommended by the City Plan Commission 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 V (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. 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 impacting service provision within the city. 5. Option to Expand: The area meets both of the following conditions: a. Without annexation, interested parties may incorporate 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 full 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 criteria in section A(Full-Purpose Annexation) above are met, and if either of the following two 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 limited-purpose annexation so that the City might control land use and the quality of A development in that populated area, pending full-purpose annexation. 4 EXHIBIT A 7115104 DRAFT—As recommended by the City Plan Commission 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 property. D. Protests of City-Initiated Annexation 1. Annexations Included in Annexation Plan: For any City-initiated annexation included in the annexation plan, the City shall comply with Sections 43.0562 and 43.0564 of the Texas Local Government Code as they prescribe procedures for negotiations and arbitration regarding the provision of municipal services. 2. Annexations Not Included in Annexation Plan: For any City-initiated annexation not included in the annexation plan, and not subject to any of the exemptions in paragraph 4 of this section, affected property owners may submit a protest petition to the Development Department prior to the date of the second City Council public hearing on that annexation. The Development Department shall determine the validity of this protest petition within 15 days of receipt. If the Development Department determines that the petition is valid, the City at that time shall request the petitioners to select five representatives to serve on a committee with City representatives to prepare the service plan (in the case of full-purpose annexation) or the regulatory plan (in the case of limited- purpose annexation). The service plan or the regulatory plan, as applicable, shall document any objections that have been expressed by a majority of the petitioners' representatives on this committee. In any decisions regarding the proposed annexation, the City Council shall take under advisement the City's receipt of the protest petition and all deliberations pertaining to the service plan or the regulatory plan, as applicable. 3. Third-Party Fiscal Impact Analysis: At the request of affected property owners, through a valid protest petition as defined herein, the City shall hire an independent certified public accountant to conduct a third-party fiscal impact analysis using the methodology set forth in Section V of this policy. This provision for third-party fiscal impact analysis shall not apply,however, to City-initiated annexations that are subject to any of the exemptions in paragraph 4 of this section. 5 EXHIBIT A 7115104 DRAFT—As recommended by the City Plan Commission 4. Exemptions: The following kinds of annexation areas shall be exempt from the provisions of paragraphs 2 and 3: • Street rights-of-way; • Enclaves existing as of the date of adoption of this policy(see Map 1, attached), with fewer than 100 lots or tracts containing residential dwellings; • Interjurisdictional boundary adjustments; • Areas with environmental conditions that pose an imminent threat to public health and safety, as determined by the City Council; • Areas that are subject to extraordinary economic development projects; and • Areas with the minimum length and width necessary to provide contiguity with the city limits for owner-initiated annexations. 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 for 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. Sales taxes. 4. Other General Fund revenues including: Other Local Taxes, Licenses and Permits, Fines and Forfeitures, Use of Money and Property, Service Charges, and Other Revenue. 5. Water and wastewater tap and impact fees. 6. 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 6 EXHIBIT A 7115104 DRAFT—As recommended by the City Plan Commission 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 Exis�tin 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 4 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 land uses shall be 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 4 above) shall be estimated on a per capita or per acre basis, as appropriate. 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 Initiated 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 r"011 the property owners prior to initiating the annexation process. 7 EXHIBIT A 7115104 DRAFT—As recommended by the City Plan Commission 2. Annexations Initiated by the City: The City will conduct the fiscal impact analysis prior to scheduling 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 during the succeeding five-year period. The 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 proposed 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. 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. The City wishes to allocate sufficient time for the transition of proposed annexation areas from the ET7 into the city. This transitional period would enable the City to arrange for the provision of adequate municipal services, and would enable affected property owners to prepare for the impacts of annexation. Accordingly, the annexation program shall delay any City-initiated annexations for three years or more from the date of the annexation area's initial inclusion in the program. The following kinds of annexation areas, however, shall be exempt from this waiting period: • Street rights-of-way; • Enclaves existing as of the date of adoption of this policy (see Map 1, attached), with fewer than 100 lots or tracts containing residential dwellings; • Interjurisdictional boundary adjustments; • Areas with environmental conditions that pose an imminent threat to public health and safety, as determined by the City Council; • Areas that are subject to extraordinary economic development projects; and • Areas with the minimum length and width necessary to provide contiguity with the city limits for owner-initiated annexations. 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 program does not prevent the City from annexing 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 1 shall amend its annexation plan to identify certain areas that the City intends to annex. The annexation plan must include any proposed annexation area with 100 or more separate lots or 8 EXHIBIT A 7115104 DRAFT—As recommended by the City Plan Commission tracts of land containing residential dwellings. An area identified in the plan may only be annexed Orr , beginning on the third anniversary of the date the plan is amended 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 plan will not necessarily contain all the areas that are included in the five-year annexation program. 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 use its website, community meetings,direct mail, the City Page, and other appropriate media to disseminate information about any City-initiated annexation. Upon request, the City's Community Relations Department shall assist affected property owners in establishing neighborhood organizations so as to facilitate communication with the City. The City shall seek public comments during the annual update of the annexation program at meetings of various community organizations throughout the City and its extraterritorial jurisdiction. At these meetings, the City shall explain the benefits of annexation, including full municipal services; planning, zoning, health and safety regulations; economic development; and orderly growth. The City shall also explain the costs to be incurred by the City and by affected property owners as a result of annexation. Prior to conducting formal public hearings on any City-initiated annexation, the City shall conduct one or more public information meetings to explain the purpose of the annexation and to describe the annexation process. The City shall notify affected property owners about these meetings by direct mail. Upon adoption of any annexation ordinance, the City shall notify the pertinent county government agencies and affected property owners. 9 MOW A Enclaves City Limits rritorial Jurisdiction IF RAM Ma I i t t r f � fi, z+ V` ,,, WE i f ° Nb„ aru 11 i e m y