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HomeMy WebLinkAboutCC-12-02-96-01 Fiscal Plan/Clay Twp/C-188Tnstrument 9709707~t~ · RESOLUTION NO. CC-12-02-96-01 A RESOLUTION OF ~ COMMON COUNCIL OFt ~q ~f~ THE CITY OF CAR1VIEL, INDIANA Parcel # TO ADOPT THE WRITFEN FISCAL PLAN AND DEFINITE POLICY FOR AN AREA ON THE WEST SIDE OF CARMEL, INDIANA, KNOWN AS THE CLAY TOWNSFlIP ANNEXATION AREA (AS AMENDED FROM ORIGINAL PROPOSED RESOLUTION NO. 12-02-96-01) DULY ENTERED FOR TAXATION _2 ~'Y day of -- . Auditor Hatnilton County WHEREAS, in connection with I.C. 364-3-13, a written fiscal plan and definite policy has been prepared by the City of Cannel for annexation of an area on the west side of Carrnel known as the Clay Township Annexation Area, which Annexation Area is more particularly described on Exhibit "A" attached hereto and made a part hereof, and WHEREAS, responsible planning and state law requires adoption of a written fiscal plan and a definite policy for, among other things, provision of services to an annexed area; and WHEREAS, such a plan has been developed and presented to the Common Council of the City of Cannel, entitled "City of Cannel, Common Council Annexation Fiscal Plan", previously submitted to the City of Carreel. NOW, THEREFORE, BE IT RESOLVED by the Common Council of the City of Cannel, Indiana as follows: Section L The Common Council of the City of Carrnel, Indiana hereby adopts and approves the written fiscal plan and definite policy entitled "City of Carrnel, Common Council Annexation Fiscal Plan, attached hereto as Exhibit "B" and made a part hereof (the "Plan"), as the' written fiscal plan and definite policy for the Clay Township Annexation Area, which Area is more particularly described in Ordinance No. C-188, as amended, of the Common Council of the City of Carrnel, Indiana, and on Exhibit "A" attached hereto, and hereby approves and adopts the specific 9709707022 Filed for RecoPd in HAMILTON COUNTY, INDIANA MARY L CLARK On 02-27-1997 At 10:58 am. ANNEXATION 54.00 policies for implementation of the Plan as set out therein. The Plan is on file at City Hall, One Civic Square, Cannel, Indiana, in the office of the Clerk-Treasurer and the Department of Community Services and is available for public inspection in both offices. Section IL Cost estimates, methods of financing, and the organization, extension and implementation of services for the property to be annexed are described more fully in the Plan. Any monies necessary for the provision of services as described and itemized in the Plan shall be budgeted and appropriated pursuant to state law and the City of Carmel's budget procedure. Section Ill. It is anticipated that this annexation will not result in the elimination ofjobs for employees of other govemmental entities, but in the event k does, then the Mayor of the City of Carrnel is hereby authorized to assist such employees in obtaining new employment, but nothing herein shall require the City of Cannel to hire any such employees. Section IV. The sections, paragraphs, sentences, clauses and phrases of this Resolution are separable, and if any phrase, clause, sentence, paragraph or section of this Resolution shall be declared unconstitutional, invalid or unenforceable by the valid judgment or decree of a court of competent jurisdiction, such unconstitutionality, invalidity or unenforceability shall not affect any of the remaining phrases, clauses, sentences, paragraphs and sections of this Resolution. Section V. The Common Council of the City of Cannel hereby finds that the timing of the annexation is important to the fiscal well being of the citizens of the City of Cannel, and hereby directs the City Attomey for the City of Carreel to cause the publication of Ordinance No. C- 188 as required by law on or before December 27, 1996. Section VL This Resolution shall be in full force and effect from and after its passage by the Common Council of the City of Cannel, Hamilton County, Indiana. PASSED ,~12) ADOI'TED by the Common Council of the City of Carrnel, this ___~ay of COMMON COUNCIL OF THE CITY OF C~?, INDIANA : ioAL ~ao~Ca~ored~ fthe Presented to the Mayor of the City of Carreel this __~ day 'i~ -~--- ~1997, at __~'clock. es Br~, ~yor ATTEST: 3 CITY OF CARMEL COMMON COUNCIL ANNEXATION FISCAL PLAN ORDINANCE NO. C-188 RESOLUTION 12-2-96-01 TABLE OF CONTENTS TO CITY OF CARA4EL CO1VBION COUNCIL- ANNEXATION FISCAL PLAN ORDINANCE NO. C-188 RESOLUTION 12-2-96-01 Page BACKGROUND AND INTENT ................................... 2 EFFECTIVE DATE AND ASSUIvIPTION ............................. 3 DESCRXFIION OF THE ANNEXATION AREA ........................ 3 SIZE OF THE ANNEXATION AREA ............................... 3 COMPARISON OF AREAS OF S543LAR TOPOGRAPHY, POPULATION DENSITY, AND PATTERNS OF LAND USE ................................. 3 POPULATION .............................................. 3 Topography ........................................... 4 Comparison of Areas of Similar Population Density, and PaRems of Land Use .................................. 4 Land Use ............................................. 4 Residential -- Low Density .................................. 5 Residential -- Medium Density ................................ 5 Commercial ........................................... 5 PLANNF~D SERVICES OF A NON-CAPITAL NATURE ................... 6 Cost Estimates ......................................... 6 Patrol -~ All Densities and Uses ............................... 6 Patrol -- Medium Density ................................... 7 Patrol -- Commercial ..................................... 7 Other Police Functions -- All Densities and Land Uses ................. 7 Fire Protection ......................................... 8 Residential-- All Densities .................................. 8 Commercial ........................................... 9 Township-City Cooperation .................................. 9 Street and Road Maintenance .h ...... . .............. ............ 9 Types of Streets Located in Annexation Area ........................ 9 Types of Streets Located In City .............................. 9 Paving -- All Densities and Land-Uses ........................... 10 Snow Removal and Other Street and Road Maintenance -- All Densities and Land Uses ................................ 10 Equipment To Be Purchased ....... _ ........................... 11 Sidewalks ..................... ~ , ,- ........ - ............ 11 Other Non-Capital Services Normally Provided ..................... 11 PLANNED SERVICES OF A CAPITAL NATURE ....................... 11 Cost Estimates ......................................... 11 Street Construction ....................................... 12 All Densities and Land Uses ................................. 12 Street Lighting ......................................... 12 All Densities and Land Uses ................................. 12 Sewer and Water Facilities .................................. 12 Storm Water Drainage Facilities ............................... 13 Other Services and Facilities Normally Provided ..................... 13 Parks ............................................... 13 Other ............................................... 14 PLAN FOR HIRING EMPLOYEES OF OTHER GOVERNMENTAL ENTITIES WHOSE JOBS WILL BE EIJMINATF~D BY THE PROPOSED ANNEXATION .................................... 14 SUMMARY AND RECOMMENDATION ............................ 14 ......... BACKGROUND AND INTENT The City of Carmel ("City") intends to annex an area in Clay Township located west of the present City limits ("Annexation Area"). Annexation of this area is authorized by I.C. 36-4-3, and it is the intent of the City to comply fully with its requirements, including the requirements to provide services and facilities to residents of the Annexation Area on the same basis as those facilities and services are provided to the City's present residents. The City is entitled to annex 'the Annexation Area because the annexation meets the requirements of I.C. 36-4-3-13 in that the property to be annexed is situated outside the corporate boundaries of the municipal City of-Carmel, Hamilton County, Indiana; but at least one-eighth (1/8) of the aggregate extemal boundaries of the property sought to be annexed are contiguous to the corporate boundaries of the City and at least sixty percent (60%) of the property sought to be annexed is subdivided; and at least one-fourth (1/4) of the aggregate external boundaries of the property sought to be annexed are contiguous to the corporate boundaries of the City and the territory sought to be annexed is needed and can be used by the City of Carmel for its development in the reasonably near future, by allowing the City to plan for and implement appropriate levels of fire, ambulance and police protection as necessitated by such growth, to provide for infrastructure and thoroughfare planning and implementation to accommodate such growth, and to eliminate duplicate services and provide economics of scale in providing municipal services. The present document is intended to meet the requirements of I.C. 36-4-3-13(d). Accordingly, the City, through its legislative body, adopts this Fiscal Plan as a part of Resolution 12-2-96-01. It is the essence of this Fiscal Plan, and the City hereby declares that the City has determined by this Fiscal Plan the cost estimates of planned services to be furnished to the territory to be annexed; the method or methods of fmancing the planned services; and the plan for the organization and extension of services. As a result of the foregoing, planned services of a non capital nature, including police protection, fire protection, street and road maintenance, and other non capital services normally provided within the corporate boundaries of the City will be able to be provided by the City to the Annexation Area within one (1) year after the effective date of annexation, and that they will be provided in a manner equivalent in standard and scope to those non capital services provided to areas within the corporate boundaries of the City that have similar topography, patterns of land use, and population density. The City has furthermore determined that as a result of the Fiscal Plan, the City will be able to provide services of a capital improvement nature, including street construction, street lighting, sewer facilities, water facilities, and storm water drainage facilities, to the Annexation Area within three (3) years after the effective date of the annexation, in the same manner as those services are provided to areas within the corporate boundaries that have similar topography, patterns of land use, and population density, and in a manner consistent with federal, state, and local laws, procedures, and planning criteria. Finally, the City has determined that the Fiscal Plan adequately provides for hiring the employees of other governmental entities whose jobs will be eliminated by the proposed annexation, if any, although the municipality is not required to hire any employees. EFFECTIVE DATE The methods of financing presented in this Fiscal Plan are based on the understanding that the effective date of the annexation will be immediately following publication and recordation of the Ordinance approving the annexation, the earliest date of which would be approximately February 25, 1997. In the event the annexation is challenged in court, and the' resolution of the challenge takes place after February 25th of a given calendar year, the effective date of the annexation will be the December 31 st next following the resolution by the Court. The Fiscal Plan provides for certain cost and revenue estimates for required services to be provided by the City DESCRIFrlON OF THE ANNEXATION AREA The Annexation Area is bounded by the existing city limits on the east and by the township line (1461h Street) on the north. The western boundary begins in the north along Ditch Road, then west along 131st Street to Hoover Road, then south along Hoover Road to ll6th Street, then east along ll6th Street to Ditch Road, then south to the south line of the north 1/2 of Section 10, Township 17 North and Range 03 East (Hamilton County), then east along this line to the existing city limits. A map of the Annexation Area is provided at the end of this Fiscal Plan. SIZE OF THE ANNEXATION AREA The Annexation Area contains approximately 4850 acres, or 7.58 square miles. COMPARISON OF AREAS OF SIMII,AR TOPOGRAPHY. POPULATION DENSITY. AND PATTERNS OF LAND USE POPULATION Based on the number of existing residential units at 3 177 within the Annexation Area, times an average of 2.6 persons per residential unit, the current population for the Annexation Area is estimated to be 8,260, or approximately 1.7 persons per acre. Currently, the City of Cannel, has approximately 31,757 residents within its boundaries, which contain approximately 11,456 acres, or approximately 2.78 persons per acre. Topopraphy The City Engineer has determined that, in her professional judgment, substantially all of the Annexation Area and the current City have similar topography, with generally flat to gentle slopes and very little steep slopes present in either the existing City or the Annexation Area, except for a few areas in each of the Annexation Area and the City which am located near tributaries and creeks which flow through the Annexation Area and the City, and the White River which flows through portions of the City. The overall elevations in the Annexation Area range from a high of approximately 903 feet above mean sea level in the northwest portion of the Annexation Area to approximately 800 feet above mean sea level in the southern portion. In the City, the high point is approximately 860 feet above mean sea level in the northwest portion of the'City and falls to approximately 740 feet above mean sea level in the southern portion. Natural drainage patterns in the Annexation Area are generally from northwest to the southeast and south, and in the City, generally from north to south, due to the presence of the White River, which is located on the east side of the City. Thus, the overall topography between the Annexation Area and the City are substantially similar. In both the Annexation Area and the City, outside of the major watershed areas, the prevalent soils are CrA (Crosby Silt Loam) Br (Brookston Silt Clay Loam) and MmB2 (Miami Silt Loam). Thus, the similarity in soils will enable the City to provide services to the Annexation Area in substz. ntially the same fashion as it provides services within its current corporate limits. Land Use The City has identified three (3) categories of areas within the Annexation Area in terms of population density and patterns of land use. These are as follows: Land Use Type Zoning Classifications Acres Residential-- low density '- Residential-- medium density *Commercial Agricultural - Vacant S-l, S-2 -- 3495 Acres (72%) R- 1 -- 165 Acres (3.4 % B-i, B-2, B-3, B-5, -- 290 Acres (6.0%) B-6, BT, B8 S-I, S-2 -- 900 Acres (18.5%) *Most of the Commercial land is also located within the U.S. Highway 31 Ove~ay and is subject to specific developmental standards in addition to those provided for by the underlying zoning classification. The City' s study, evaluation, and planning of patterns of land use and residential density is evidenced in part by a document entitled Carmel/Clay 2020 Vision Planning Process --A Comprehensive Plan for Carmel and Clay Township, Indiana, September 16, 1996, (the "Comprehensive Plan") as well as existing zoning base maps and field work conducted by the Department of Community Services. Page 4-7 of this document contains a map prepared by HNTB, an architectural and engineering fn'm, identifying planned densities. Page 4-5 of the document defines the terms describing density. Copies of the Comprehensive Plan are on f~e and available for public inspection in the offices of the Clerk-Treasurer and the Department of Community Services of the City of Cannel. Residential -- Low Density The great majority of the residential-area of the existing City has a density termed "low intensity." This density is 'defined as "Single family detached'housing developed in a platted subdivision with densities between 1.3 and 3.0 dwelling units per acre." The great majority of the residential area 'of the Annexation Area is at or below the density level termed "low intensity." Accordingly, in planning the extension of services, the low density areas of the Annexation Area are compared with "low intensity" areas in the existing City. It is the belief of City officials that this approach will assure that annexed residents and property owners in the low density areas of the Annexation Area will receive services and facilities in a manner equivalent in standard and scope to those provided to the residents of low intensity areas in the existing City. The 2020 Vision document does not illustrate the detail of the various residential densities in the Annexation Area. Also, some approved densities in the Annexation Area are currently higher than those shown in the Comprehensive Plan . Efforts are underway to bring the approved densities into line with the Comprehensive Plan. Nevertheless, the City has studied the actual densities within the Annexation Area and has determined that the "very low intensity" and "rural residential" areas identified in the Comprehensive Plan are in fact at or below the density of the "low intensity" areas of the existing City. Residential -- Medium Density The Comprehensive Plan illustrates on page 4-7 the areas of the existing City and the Annexation Area that have medium density. This density is def'med as "between 3-5 units per acre. These areas are a minority of the residential area of the Annexation Area, comprising approximately 3.4 % of the Annexation Area. However, comparisons of these areas between those in the existing City and those in the Annexation Area have been taken into account in the City's plan for the organization and extension of services. Commercial The Comprehensive Plan illustrates on page 4-9 the areas of the existing City and the Annexation Area that are commercial. These areas are a minority (six percent (6%)) of the Annexation Area, and are generally located adjacent to or nearby existing commercial area within the existing City, thus, enabling the City to provide the same services at an economic advantage to the City. However, comparisons of Commercial Areas between those in the existing City and those in the Annexation Area have been taken into account in the City' s plan for the organization and extension of services. PLANNED SERVICES OF A NON-CAPITAL NATURE Cost Estimates Cost estimates for each of the categories of planned services of a non-capital nature are provided in a spreadsheet exhibit at the end of this document. Police Protection Patrol -- All Densities and Uses The City's approach to police patrol is to divide the City into four (4) quadrants. Roughly, these quadrants are defined by Rangeline Road and Keystone Avenue running north and south and by Carreel Drive and 126th Street running east and west, The quadrants have been established by the police department based on geographic area, population density and the past history of service calls from within the quadrants, Among these quadrants, the City has between a minimum of six (6) and average of 7.5 units on patrol at all times of the day and night, which is divided into three (3) temporal shiPts and a tactical shift. Through November, 1996, City police have responded to approximately fifty thousand (50,000) service calls, which will be approximately fifth-five thousand (55,000) calls on an annualized basis. This patrolling method allows the City to achieve an average response time to citizen calls of approximately five (5) minutes or less. The actual response time attempted varies by the nature of individual incidents. The City attempts to achieve a higher response time for more urgent incidents. The plan for extending the police patrol into the Annexation Area is to expand the northwest (Quadrant 1) and southwest (Quadrant 3) quadrants into the Annexation Area. In order to assure that this expansion does not overextend the resources devoted to those quadrants, an additional unit will be added on all shiRs. This new unit will patrol between these two (2) quadrants, primarily in the Annexation Area. The impact of this addition will be to increase the patrol force in rough proportion to the increase in street miles population to be patrolled, and the number of estimated calls expected from the Annexation Area. The addition of one (1) unit for all shifts is estimated to meet the City's requirement for number of units available to serve the population level and territory of the expanded City following annexation, at the same level of service it now provides. The addition of this unit on all shifts will require the addition of four (4) new officers. These have been provided in the 1997 budget, but will be put in place only if the Annexation is approved. The 1997 budget has also provided for ten (10) additional patrol cars. The City believes the addition of these vehicles will satisfy the needs of the new patrolmen as well as the needs of normal rotation of the fleet. 6 Patrol -- Medium Density The City believes that higher density areas require more intense police patrol than low density areas. However, the Annexation Would add little medium density (as opposed to low- density) residential 'territory. relative to that of the existing City. The Annexation Area has no high density .areas. Accordingly, the City believes that the plan for extending the quadrants and adding a patrol unit will suffice for providing coverage with regard to residential areas with more than low density. Patrol -~ Commercial Patrol of commercial areas requires services not needed or not appropriate in residential- areas. In particular, during hours of darkness, patrol officers will visit commercial properties, inspect them visually, and check doors. This inspection is routinely accomplished once per night for each commercial location. Inspections may take place more or less often depending on the professional judgment of the patrol officer. The annexation would add very little commercial territory relative to that of the existing City, and currently, only 24 commercial structures. Accordingly, the City believes that the plan for extending the quadrants and adding a patrol unit will suffice for providing coverage with regard to commercial areas. Other Police Functions -- All Densities and Land Uses Police functions other than patrol are provided on a centralized basis. This approach would be continued in the event of annexation, and the services would be made available to the Annexation Area in the same manner as to the existing City. The Chief of Police and his staff have undertaken a study to determine the cost of extending all police services into the Annexation Area. These proposed costs were included in the proposed 1997 budget for the Police Department and approved by the Mayor and Common Council with the understanding that these costs would be incurred only if the annexation were approved. It is the professional judgment of the Chief that these appropriations, with incremental annual increases as estimated by this Fiscal Plan, will be adequate to provide police service to the Annexation Area in the same manner and scope as in the City. Fire Protection Residential -- All Densities Fire protection and emergency medical service is provided on a township~wide basis under a joinder agreement between the City and Clay Township. Stations are located strategically throughout the Township and average response time is approximately five (5) minutes. Naturally, response time varies according to proximity to a fire station. The location of stations is such that the southern part of the Annexation Area receives service in a manner that is equivalent in standard and scope to that of the existing City. In order to provide the same level of service in the.northern part of the Annexation.Area, and reach a City goal of response time of four (4) minutes or less in ninety percent (90%) of all calls. a station will be established in or near that area, most likely near the intersections of 136th Street and Ditch Road, or 136th Street and Springmill Road. The Fiscal Plan provides for the estimated cost of a new fire station to be One Million Eight Hundred Thousand Dollars ($1,800,000.00), to be paid for by using available operating reserves or by a bond issue and amortized over a ten (10) year period. It is estimated that the station would be completed by December 31, 1997. The new station would house an engine and an ambulance, which will have an estimated cost of approximately Three Hundred Twenty Thousand Dollars ($320,000.00), and will be purchased from available operating funds, leased or paid for through borrowing, and amortized over a three (3) year period. The engine would be staffed at all times (three (3) shifts) by four (4) fire fighters and the ambulance would be staffed at all times by two (2) lure fighter/emergency medical technicians, or a total of eighteen (18) persons. The City has one (1) standard aerial engine stationed in the central fire station. A smaller aerial engine is located in a station in Clay Township near the Annexation Area. This smaller aerial engine has a capacity of fifty (50) feet, which the City believes is adequate for practically all potential emergency events in the Annexation Area. The City believes the existence of these two (2) aerial engines will allow the City to provide service to the Annexation Area that is equivalent in standard and scope to that provided in the central portions of the existing. Along with the addition of a new station, the City plans to make a ten percent (10%) general increase in the budget of the Fire Department in proportion to the population added by the annexation. These increases will allow the fmancing of any additional central and overhead costs necessitated by the extension of services to the Annexation Area. Commercial Provision of fire protection and emergency medical service in commercial areas is approached in substantially the same way as in residential areas, with the exception that the City performs annual lure inspections of commercial structures. Few commercial structures will be added as a result of the Annexation. The City believes that the increase of the general budget of the Fire Department in proportion to the increase in assessed value of the Annexation Area will be adequate to f'mance the extension of fire protection and emergency medical service with regard to commercial areas in the Annexation Area. Township-City Cooperation The City and Township have cooperated for many years in providing fire protection and emergency medical services on a township-wide basis. The City desires and expects that this cooperation will continue. Should this arrangement end for any reason, however, the City would continue to finance its ongoing fire protection and emergency medical services operating costs, as before, based on the revenue generated by the assessed value 'of the City's portion of the territory in Clay Township. However, an additional burden could arise in that the City might no longer be able to rely on the use of certain equipment owned by the Township and stations located outside the city limits. In this unlikely event, the City's plan is to replace these facilities as soon as possible. If necessary, the City would use its bonding capacity to finance these capital outlays. The City' s bonding capacity is more than adequate to do so. Street and Road Maintenance Types of Streets Located in Annexation Area There are approximately fifty-eight (58) miles of additional streets currently located within the Annexation Area. There is one "primary parkway" located in the Annexation Area, which is 116th Street. There is one secondary arterial street in the Annexation Area, which is 131st Street. Both 116th Street and 131st Street are generally two (2) lane streets which are governed by four-way stop signs at significant intersections in the Annexation Area. Collector streets located in the Annexation Area include Old Meridian, Oak Ridge, Ditch, Springmill, Rohrer, Hoover, 141st, 1361h and 106th. These are also generally two lane streets and are governed by stop signs at significant intersections. The remainder of the streets are local or interior streets within subdivided areas and constitute the vast majority of street miles in the Annexation Area. Types of Streets Located In City There are approximately one hundred seventy (170) miles of streets currently within City boundaries. Of these, streets located within the City which are similar to streets in the Annexation Area include 116th Street as a primary parkway, secondary arterial streets such as 131st Street, 106th Street, Gray Road and Camel Drive and collector streets such as lllth Street, Carey Road, Guilford Road, and Cherry Tree Road. Due mostly to the presence of more commercial, industrial and retail corridors in the City, the primary parkway, secondary arterials and collector streets within the City have additional traffic lanes in some areas and major intersections are served by traffic lights. The City has examined the nature of the streets and significant intersections in the Annexation Area, and has determined that no additional traffic lanes or automated traff'~c signals are needed at this time. However, the City will be able financially to make such improvements as the Annexation Area continues to develop, based on traffic studies, standards set forth in the Manual for Uniform Traffic Control Devices, accident listings and actual development patterns. Most subdivision and local streets in the City are .substantially similar in construction and condition as those types-of streets which exist in the Annexation Area. Paving -- All Densities and Land Uses The City administers a street paving program which identifies the highest priority of paving needs in the City. Available resources are devoted to these priority projects. The plan for extension of-service to the Annexation Area is to include these 'new streets in the 'street paving program. This extension-will be financed by increasing the paving budget in the same proportion as the addition of street miles as a result of the annexation. On an annual basis, typically in the spring, City examines its streets and makes determinations regarding the level of maintenance or repairs required on a priority basis, considering street and traffic conditions. Work is then undertaken to provide the maintenance and repairs. The Annexation Area will immediately became a part of the annual needs assessment process following annexation. Although street maintenance needs assessment for the Annexation Area has not been formerly conducted by the city, the Fiscal Plan does provide for additional reserve funding of One Hundred Thousand Dollars ($100,000.00) in order to anticipate those maintenance needs based on the same level of service provided to City streets. Snow Removal and Other Street and Road Maintenance -- All Densities and Land Uses Non-paving maintenance work provided by the City includes: striping, snow removal, street cleaning, dead animal removal, roadside mowing, removal of trees and vegetation from rights of way to improve safety and visibility and certain administrative and supervisory services provided by the City Engineer. Such work is identified and prioritized in a manner similar to paving work, and the plan for extending these services to the Annexation Area and financing them is substantially the same. For example, the City's goal for snow removal is to clear all streets within twenty-four (24) hours of a three (3) inch or more snowfall, first clearing emergency and school bus routes, then main and secondary roads, hills and curves, and then residential streets. Currently, residents of the Annexation Area typically pay private contractors to remove snow from residential streets. Equipment To Be Purchased Due to the increase in street miles to be maintained by the City by reason of the annexation, the City has determined that it needs to purchase several pieces of maintenance equipment, including (2) tandem axle trucks, and (1) single axle truck with sale spreaders, central hydraulics and snowplows, (2) one-ton trucks with snowplows, (2) 3/4 ton pickup trucks with plows, , (1) Gradall, (2) tractors and mowers, (1) small paver, (1) 2-4 ton roller and (1) skid loader and millinghead at an estimated cost of $619,000.00, and hire five (5) additional personnel in order to provide the same level of service for the Annexation Area as it currently 10 provides within the current corporate limits. The City will either purchase the new equipment outright using available operating reserves, lease equipment, or borrow funds to purchase the equipment, and amortize it over a five (5) year period. Sidewalks The City does not generally construct sidewalks along existing residential streets, but has constructed sidewalks along streets adjacent to retail areas and other special needs areas, such as Main Street in "Old Town Carmel". The Annexation Area does not currently have any significant retail areas without sidewalks. Most of the arterial-streets within the City and the Annexation Area do not have sidewalks, and those portions within the Annexation Area will not be required to do so. Residents in the Annexation Area desiring sidewalks must petition the City Board of Public Works and Safety following annexation. Other Non-Capital Services Normally Provided Parks services are addressed as a capital service and facility in a later section of this document. No other non-capital services have been identified. However, the City is committed to providing all services of a non-capital nature to the Annexation Area in a manner similar in standard to and scope to those provided in the existing City, and the City believes the general increase in expenditures contemplated in this Fiscal Plan will enable it to do so. For example, the Fiscal Plan budgets significant additional funds for each of the major administrative departments within the City in order to adequately staff and function at the same level of service as currently provided, due to the increase in population by reason of the annexation. PLANNED SERVICES OF A CAPITAL NATURE Cost Estimates Cost estimates for planned services and facilities of a capital nature axe provided in a spreadsheet exhibit in this document. Street Construction All Densities and Land Uses The City undertakes street construction projects on an as-needed basis based on City officials' knowledge of the life cycles of roads and streets, observations by City officials, and reports by citizens. As these projects are identified, f'mancing is obtained and the projects axe pursued. City officials have determined that no street construction is needed in the Annexation Area in the reasonably foreseeable future. 11 The City's plan for extending these services to the Annexation Area, to the extent they are needed, is to apply to the Annexation Area the City's customary practices and polices for identifying and undertaking street construction. The City has sufficient reserves and borrowing capacity to meet any such needs within-three years of the effective date of the Annexation. Street Li~,htin~ All Densities and Land Uses The City assists property 'owners in obtaining and maintaining street lighting where appropriate but the City does not finance the installation or maintenance Of street lights except in extraordinary circumstances. The city is aware of no such extraordinary circumstances in the Annexation Area. The City will only undertake street lighting projects along streets serving large commercial areas, and at major intersections where the citizens safety is at risk. The Annexation Area does not currently have any such commercial corridors, or any major intersections which currently require lighting fuctures. The City is able to assume the costs of electricity for existing street lights in the Annexation Area which are currently being paid for by the Township. Nevertheless, the City plans to set aside funds each year to be available for street lighting-in the Annexation Area if it comes to the City' s attention these expenditures are necessary in order to provide services to the Annexation Area in the same manner as in the existing City. Sewer and Water Facilities Sewer and water facilities are presently available in virtually all of the Annexation Area through Hamilton Western Utilities, which serves the northern area of the Annexation Area, and through the Indianapolis Water Company (water), and Clay West Regional District (sewer) which serve the southern area of the Annexation Area.. The City has provided sewer service to small portions of the Annexation Area, including the Thistlewood, Bentley Oaks, Hunters Creek South and Hunters Knoll subdivisions and the Meridian Village Plaza Shopping Center, and can extend service to nearby unserved areas if required to do so. Funding for such extensions are accomplished through availability, connection, construction and user fees imposed on the person(s) desiring such service, and not general property taxes. The City currently contracts with both Hamilton Western and the Clay West District and processes sewage from these utilities at its wastewater treatment facilities, which have the capacity estimated to handle additional sewage caused by additional development of the Annexation Area. Storm Water Drainal, e Facilities Annually, the City Engineer and other City officials identify and prioritize the needs for stormwater projects . Simple or minor projects are undertaken by the City's Street Department employees and engineering staff . Design and construction of more involved projects are contracted. The funding sources for these contracts are the Cumulative Capital Development Fund, Cumulative Capital Improvement Fund, and Cumulative Sewer Fund. 12 The City plans to extend the provision of these facilities to the Annexation Area by providing them in the same manner as in the existing City'. The budgets for internal crews and the City Engineer will, accordingly, be enhanced in proportion to the territo_ry being annexed. The cumulative funds named above will receive additional funding as a result of the annexation of additional assessed value and population. The City will set aside an additional One Hundred Fifty Thousand. Dollars ($150,000.00) per year for two (2) years for stormwater drainage projects exclusively in the Annexation Area. Other Services and FaCilities Normally Provided Parks Park service is not provided presently by the City but rather is provided through a joint parks department of the City and Clay Township. This joint parks departments conducts is business through township government, and its budget is regulated along with the township budget. Residents of the Annexation Area already participate in the costs and services provided by the joint parks board. Accordingly, parks service is not required to be addressed in this Fiscal Plan. Nevertheless, the City wishes it to be known that presently there are approximately forty (40) acres of parks in the City. The City and Clay Township, through the joint parks board, have determined to establish a park in the immediate vicinity of the Annexation Area. Two Million Dollars ($2,000,000.00) of the funding for this park is allowed in the 1997 budgets of the City and Clay Township and the City is committed to maintaining adequate funding for this park regardless of the outcome of the proposed annexation. Accordingly, this Fiscal Plan identifies no new costs for parks. Other No other facilities and services of a capital nature have been identified. However, the City is committed to providing all facilities and services of a capital nature to the Annexation Area in a manner similar to the existing City, and the City believes the general increase in expenditures contemplated in this plan, along with its unused bonding capacity, if needed, will enable it to do so. The City has initiated and will complete a comprehensive study of its capital improvement needs and implement an overall capital improvement plan. Although such a study and a plan are. not necessary for the extension of services to the Annexation Area, the City wishes to be k. ~own that the City is committed to this course of action regardless of the outcome of the annexation. 13 PLAN FOR HIRING E,MPLO~ES OF OTHER GOVERNMENTAL ENTITIES WHOSE JOBS WILL BE ELIMINATED BY THE PROPOSED ANNEXATION The City does not expect that any jobs-of employees of other governmental entities will be eliminated by the proposed annexation. However, for one (1) year after any such job elimination occurs, the City will accept applications from any such employees and offer them first consideration in any. City employment positions that are new or become vacant. Furthermore, the City will make its best efforts to place any such employees in City positions that are commensurate with the skills and pay levels those employees enjoyed in the jobs that were eliminated. The City is not committed to hire such employees if they do not meet the standards for-employment that are specified or customary for the hire of employees for the City. SUMMARY AND RECOMMENDATION The annexation of the Annexation Area is appropriate at this time for many reasons relating to he existing level of development and in order for the City to achieve proper growth and Plan for the orderly growth of the Annexation Area. Both the City and the Annexation Area have grown quickly over the past 20 years, and in particular, the last 10 years. Because the City corporate boundaries were not contiguous to the Annexation Area until recently, the City could not have annexed this Area until the present time. As the Annexation Area continues to develop more municipal services, currently provided in part by the City and Township under joinder agreements, the Township itself, and the county are required. The City is in the best position, administratively and financially, to assure that those services are provided in the most economic and efficient manner. Although the City and the Annexation Area are not entirely homogenous in terms of land use and population density, they share common threads in terms of population growth, overall land use growth, education and socioeconomic behavior. Persons residing in the Annexation Area are just as likely to travel the same City streets, attend the same community and school activities, and fred work in the City of Carmel as their City counterparts. Many of the same streets are found traversing both the City and the Annexation Area. Newer subdivisions in the City and in the Annexation Area are substantially similar in unit density, quality of construction and home value. Many persons in the Annexation Area probably did not realize or base their purchasing decision on whether their residence was in or outside the corporate boundaries of the City. Visitors to the area could not easily conclude that there is a difference at all between the general pattern of citizen demographics and behavior, land uses and structures in the City and the Annexation Area. Immediately following annexation, persons residing in the Annexation Area will be directly represented by a member of the Common Council, thus providing those residents with a greater role in decisions which affect quality- of life and other issues addressed by City government and the Common Council. 14 The City has estimated costs and revenues for the one and three year periods it has to provide services in order to prope~y measure the impact of the annexation, and has concluded that both the City and Annexation Area stand to gain from the annexation. The City no doubt will benefit from the additional revenue generated by the Annexation Area, but will also receive additional revenues from sources such as the County Option Income Tax, Motor Vehicle Highway Fund, Local Roads and Streets Fund, Cigarette Tax, Alcoholic Beverage Tax, and Community Development Block Grants, which will benefit residents of the newly expanded City, including those residing in the Annexation Area. The spreadsheet exhibit indicates that over time, the City can not only provide the same level of services to the Annexation Area, but also provide for the need of capital improvements such as an additional f'tre station, and, at the same time, reduce its 'corporate property tax rate at the rate of three percent (3 %)' a year. The City is also cognizant of the current, lower overall net property tax rate currently paid for by the residents of the Annexation Area. Accordingly, in order to maximize the value of services to be received by these residents following annexation, the City, in this Fiscal Plan, has budgeted a phase in of the increase in property taxes by providing for a two (2) year tax abatement, resulting in a sixty-six percent (66 % ) abatement of the increase in property taxes the first year such taxes would be payable, and thirty-four percent (34%) abatement in the second year to such residents. Even with the abatement, the City is financially able to provide the non- capital and capital services to the Annexation Area as required by law and remain fiscally healthy. In summary, the City believes that the proposed annexation makes sense, from a geographic, socioeconomic and fiscal point of view. The Annexation Area is an urbanized area which, from both a practical and analytical point of view is as much a part of Carmel as are the areas within the current corporate limits. The Annexation Area meets the State law contiguity and subdivision requirements, and is needed and can be used by the City for its development in the near future. The City is in the best position to plan for and meet the service needs of the Annexation Area as it continues to grow, and due to the City's concurrent growth, the economics of scale that can be achieved by the City in providing such services will benefit both the City and Annexation Area. The Fiscal Plan adequately estimates the costs of services to be provided, and revenues to be received resulting from the annexation, and the City will remain fiscally healthy following the annexation. The Fiscal Plan also considers the impact of the Annexation on the residents of the Annexation Area and provides for two (2) years of property tax impact relief. Considering all of the foregoing, it is recommended that the Common Council adopt this Fiscal Plan as part of a Resolution concurrently with the passage of the Annexation Ordinance, and that the Annexation Area should be annexed by the City of Cannel immediately following all necessary publication and recordation requirements. ka/jdc/carmel/annfis.pln 15 Z Z iil ca 3:, z m c: ~ 0 ~ .,a.O .,b,. rn -I C) ~z Oc~ OOm mS zz rn rn rnu~ cO o x .-~ < c -! c).. x (/)