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HomeMy WebLinkAboutResolution 47-1996 RESOLUTION NO. 47-96 WHEREAS, the City Commission in Resolution 69-95, dated July 25, 1995, directed that a study of the economic and social impact and benefits of future annexation be made, and; WHEREAS, an Ad Hoc Committee was formed to advise the City Commission on the scope of the study, a method for conducting the study, methods of receiving public input and the results of the study, and; WHEREAS, the Ad Hoc Committee has completed their work and forwarded a report thereof which is attached to this resolution; NOW, THEREFORE, BE IT RESOLVED that the governing body of the City of Brookings hereby accepts the report of the Ad Hoc Committee for the annexation study and directs that the report be forwarded to the Brookings Municipal Utilities Board and the Brookings Board of Education for their review and possible action and; BE IT FURTHER RESOLVED that the consulting firm, TransSystems Engineers and Planners, including Phil Hoffmann and Zee Gilbert and the Ad Hoc Committee, consisting of Barb Telkamp, Rick Intermill, Emil Klavetter, Chuck Ullery, Gregg Jongeling, Dave Peterson and Len Santema, be commended for their service to the Brookings Community. The Ad Hoc Committee is dissolved. Passed and approved this 4th day of June, 1996. io�eRoo�N Mayor � � ' m �� �� '�'�',� Finance Officer REPORT OF THE AD HOC COMMITTEE FOR THE ANNEXATION STUDY The Ad Hoc Committee has reviewed the report on Economic and Social Im a ts of Fu re Annexation by TranSystems Engineers and Planners of Denver, Colorado. We find it to be complete and fully meeting the criteria set for acceptance in the November 28, 1995 Request for Proposals. From Section 7, Conclusions and Recommendations, the Ad Hoc Committee, before disbanding as an entity, makes the following recommendations: 1. Things that should happen 2. How these things should be accomplished 3. Implementation by whom Note: Item numbers refer to the attached report pages #50, 51 and 52 with numbers added for clarity. Action: Iterr�s 3 - 4 The City should review subdivision regulations including the drainage fee to make them fit areas of future annexations when those areas want to make improvements before being annexed. Hovif� Interim levels of development may be allowed such as plaang curb and gutter and gravel streets but waiting with asphalt until actual annexation. Rural type roads with ditches may be acceptable in some fringe areas of the city where estate zoning (3 acres and larger) is prevalent and the number of driveway accesses is minimal. Implementation By: City Planning Commission, City Commission Dan Hanson and Gregg Jongeling ********** Acpon: Item 7 The school busing policy should be addressed. The boundary should not be on the city limits line in all cases; and the boundary should not change just because the city limits change. Hov�f� The annexation study, on pages 28 - 30, lays out the costs and areas affected by the school's current policy. The Board of Education can review this information and direct their staff to develop a proposai. Implementation By: Brookings Board of Education Dave Peterson ********** Acction: Item 11 Existing residences and certain development areas already allowed in the Joint Jurisdic6onal Area should be hooked up to aty services if it is physically and economically possible to do so. Hovif� Review Utility Board policy on access and pricing Implementation By: Brookings Municipal Utilities Andy Jensen ********** Ac�tion: Item 13 The City should immediately annex the "Telkamp Industrial Park"that is already under city ownership. Hov�? The Mayor can sign a petition for annexation which will go first to the Planning Commission and then to the City Commission. A resolution of annexation will then accomplish the task. Implementation By: Mayor, Planning Commission, City Commission Dan Hanson, Gregg Jongeling The Ad Hoc Committee also recommends that the elected and appointed boards and commissions review their policies in an attempt to remove disincenfives to annexation and that information be provided to property owners on the benefits and costs of annexation. Motion was made by Barb Telkamp and seconded by Emil ldavetter to approve this report of the Ad Hoc Committee. All present voted aye. MOTION CARRIED. Gregg . ongeling c6n S tary Aannexl.gej 2 r - Economic and Social Imvacts of Future Annexations paee 50 City of Brookings, South Dakota Section 7. Conclusions and Recommendations Similar to many of the communities in South Dakota and neighboring states, the City of Brookings has recognized the need to analyze the economic and social impacts of future growth. Fortunately, Brookings has proceeded with this annexation study at a time when growth demands reflect relatively small annual increases, and in advance of many of the severe problems that can occur with uncontrolled growth rates and development along fringe areas of the City boundaries. The following conclusions and recommendations are based on the analysis detailed in this report: 1. • The City's historic growth rate can reasonably be expected to continue well into the next century, with population growth from 17,200 persons in 1996 to 28,280 persons by the Year 2050. The City will continue to aggressively pursue new commercial and industrial development in the City, to promote economic development and job growth. 2. • The City limits currently include a land area of 7,209 acres {11.26 squa�e miles). There is enough residential land within the current City limits to accommodate additional development and population growth through at feast the Year 2030 and possibly 2050. However, there may be a shortage of commercial and/or industrial land within 10-20 years. 3. . Ideally, cities should annex territory in advance of development so that city regulations can be used to ensure the �ypes and standards of development that the city desires. However, since the City and Brookings County have in place the common development standards of the Joint Jurisdiction Area, concem about substandard development in the fringe areas is eliminated. The larger issue is the overall benefit/cost associated with annexation. 4. . The common development standards also eliminate the differences between the City and County in terms of opportunities to develop affordable housing; it is no longer an annexation issue. The need for affordable housing in Brookings has been well documented; the City's next step is to set policies and goals to meet those needs. 5. . For the City, annexation represents costs of providing additional services, as well as additional revenues frcm taxes and fees. The question is one of balancing the costs and revenues at worst. or realizing a net increase in revenues at best. 6. • For Municipal Utilities, annexation represents costs of buying out current utilities providers, as well as additional revenue opportunities for the utility service enterprise funds. The question is how to optimize the revenue opportunities, especially given the recent changes in the telecommunications laws, but not at the expense of the City in terms of excessive service costs. The new Telecommunications Act opens all areas to a competitive environment, thereby �liminating monopoly opportunities for the telephone service fund. Consequently, now there is much less incentive to pursue aggressive annexation of vacant land. 7. • For Schoot Distnct #5-1, annexation represents the need to re-consider its policy regarding the provision of schoof bus service relative to the current City limits. The School District may determine that a policy change is approp�iate to continue providing bus service for students living beyond the 1.5 mile radius, revardless of chan4es in_the Citv limits, particulariy given the relatively low cost of providing the service and the very low marqinal cost of extending additional service to adjacent developed areas. Further, the School Distnct may re-examine the provision of bus secvice to areas such as Esther - r- Economic and Social [mpacts of Future Anne�ations oa¢e 51 �� City of Brookings, South Dakota " Heights, that were partially annexed, whereby bus service is provided to the portion of the development that is still outside the City limits, but not to the portion that is within the City limits. Provision of bus service to the entire development would be more equitable for all of the residents. 8. • For individual howeowners within the City limits, annexation represents little or no economic or social change, as long as it occurs in conjunction with citizen input and based on a fair assessment of the benefits and costs. 9. • For individual homeowners in the County (outside the City limits), either cuRently or in the future, annexation raises issues of (possibly undesired) urbanization of their chosen °rural" lifestyfe, the potential loss of school busing, significant reductions in their utility costs, small increases in their property taxes, the benefits of additional City services, and possible assessment of the costs to bring pre-1980 developments up to City standards. Clearly, existing residential areas should be annexed into the City onlv at the owners' request, after infrastructure has been upgraded to City standard, and if the annexation is consistent with the overall desired growth pattem of the community. 10. • The challenge for Brookings will be the ongoing planning and redevelopment efforts to ensure evolution of the community in the most orderly and advantageous manner, to achie�ve the type, size and scale of community most desired by the residents and supported by policy decisions. 11. • The City and the County should consider ways to provide sanitary sewer in pre-1980 developments and eliminate the environmentat impacts associated with current septic systems, particularly in areas with poor drainage. 12. . Developed residential land represents about 54% of the total developed land area within the City limits, requires 69% of total City expenditures, and generates 46% of property tax and utility service revenue. In contrast, the developed commercial and industrial land area represents about 46% of the total, requires 31% of total City expenditures, and generates 54% of property tax and utility service revenue, plus all of the sales tax revenue. 13. • In summary, commercial and industrial land uses generate significantly more revenue and require less City expenditure than residential land uses. Consequently, the City may want to consider annexation of additional land for commercial and industrial purposes, in conjunction with its aggressive attempts to attract more industry to the City. However, the City should take a more cautious approach to annexation of additional residential land. 14. . A companson of various annexation strategies indicates that there is limited economic benefit associated with either the maximum annexation or no additional annexation strategies. The maximum annexation strategy would result in a 21% increase ($580,000 per year) in total net profit to the City over the next 54 years. The no additional annexadon strategy would result in a 7% increase (�200,000 per year) in total net profit to the City over the next 54 years. The maximum commercial/industrial annexation and no additional residential annexation strategy would result in a 36% increase (�980,000 per year at full development) in total net profit to the City over the next 54 years. 15. • In terms of existing development within the City, residential areas generate a net revenue loss of $510 per acre and commercial/industrial areas generate a net revenue gain of 51,790 per acre. 16. . Potential annexations should be evaluated in terms of the following criteria: net annual revenue gain/loss; ownership; contiguity with City limits; infrastructure which meets City standards; ease of utility extensions; homeowner cost impact: and general desirabiliry. . , �^ • � . � ' ' Economic and Social ImDacts of Future Annexations naee 52 Gty of Broolungs, South Dakota 1?• • In terms of the potential areas of annexation, Area C likely represents the best annexation opportunity for the City. In contrast, Area F would likely be a poor candidate for annexation, based on cuRent conditions. 18. • The City of Brookings can use the evaluation model developed in this report to assess the specific merits of annexing these areas or smaller sub-areas as the need arises in the future. The City may wish to consider re-evaluating the potential annexation areas on an annual basis, using the evaluation model described in Section 6. Should the evaluation indicat� that it would be in the best interest of the community for specific areas to be annexed prior to development or prior to property owner petition, a city-initiated annexation may be in order. Such city-initiated annexations ma assist the Ci in e Y xtendin u 'itie ty g tU s and streets in a more cost efficient and orderly manner, and to ensure appropriate growth pattems for the community.