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Economic development Annexations- Evaluating and proposing annexations along with selling your city to the property owner

Doberman

Cyburbian
Messages
209
Points
9
Aside from the obvious checks in the box requirements such as being contiguous to your municipal boundaries, what other factors do you weigh evaluating and proposing internally, recommendations for annexation?I was thinking existing traffic count data, current land use, acreage, existing utilities, accessibility, along with what your planning documents say about the area. Another special consideration is rather or not they are contiguous to our neighboring city who annexes land very aggressively.

How do you evaluate the fiscal impact? Most of these sites are actually existing commercial, so while we know intuitively it would benefit the city to annex them, I would like to have something to quantify.

How do you then sell annexation to the business-owner who is enjoying the cheaper taxes being unincorporated and sees no benefit from your school system as a commercial property?
 

DVD

Cyburbian
Messages
15,021
Points
52
One thing to consider is cost of infrastructure improvements. A city I worked for had a large residential retirement community next to it. We never considered annexation because it's residential, would have been a political mess, and the official reason, cost of road improvements to city standard was too high.

That same city had some kind of cost benefit analysis the finance dept. set up relating to property and sales taxes vs. cost of services. I'm not sure how they did it all and they would not release their magic ratios. It was a weird time in the city where no one trusted the other dept.

In the same city we were able to tell residents that they would actually pay lower taxes by annexing in. They had a rural fire dept. tax that was higher than the city tax. We could also sell police response times over sheriff, use of city parks and libraries, use of city pools, etc.
 

Doberman

Cyburbian
Messages
209
Points
9
One thing to consider is cost of infrastructure improvements. A city I worked for had a large residential retirement community next to it. We never considered annexation because it's residential, would have been a political mess, and the official reason, cost of road improvements to city standard was too high.

That same city had some kind of cost benefit analysis the finance dept. set up relating to property and sales taxes vs. cost of services. I'm not sure how they did it all and they would not release their magic ratios. It was a weird time in the city where no one trusted the other dept.

In the same city we were able to tell residents that they would actually pay lower taxes by annexing in. They had a rural fire dept. tax that was higher than the city tax. We could also sell police response times over sheriff, use of city parks and libraries, use of city pools, etc.

Thanks.

Fortunately in this instance, these commercial properties front on a state highway that we wouldn't have to maintain.

This might be a dumb question, but do you typically have to pay city and county property taxes if you own property within a city or is it just city?
 

DVD

Cyburbian
Messages
15,021
Points
52
My property tax pays

School tax, bond, overrides
Community college tax, bonds
State equalization tax (WTF? - has to do with education)
West-MEC (I'll have to look up that one)

City tax, bonds (only city specific tax)

General county fund

Flood control
Water district
Fire district assistance tax (new one - if you're in a county property you pay a specific district tax. sounds like I get to help now)
Library
County health tax and bonds

My county also provides this nice chart to tell me who to be angry at.
1598300078382.png
 

MD Planner

Cyburbian
Messages
2,565
Points
39
Why are existing businesses wanting to annex? That's almost unheard of unless there is some particular service they really want and are currently not getting.

I will add another consideration for annexation is also that your jurisdiction now has control over future development or redevelopment. Sometimes that is a powerful motivator.
 

Gedunker

Moderating
Staff member
Moderator
Messages
11,509
Points
41
Why are existing businesses wanting to annex? That's almost unheard of unless there is some particular service they really want and are currently not getting.

I will add another consideration for annexation is also that your jurisdiction now has control over future development or redevelopment. Sometimes that is a powerful motivator.

Fire service, frequently. Insurers, if they are honest, will typically charge much more for those protected by volunteer departments versus those served by professional departments (especially those with high ratings). Also, sewer surcharges of up to 50% for non-annexed properties using the POTW. Taken together, they can be a fairly substantial savings.
 

Doberman

Cyburbian
Messages
209
Points
9
Why are existing businesses wanting to annex? That's almost unheard of unless there is some particular service they really want and are currently not getting.

I will add another consideration for annexation is also that your jurisdiction now has control over future development or redevelopment. Sometimes that is a powerful motivator.

We are going to have to take a more proactive approach since they are not really approaching us. That usually means incentives I would imagine.
 
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