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Home My WebLink AboutCC-08-07-00-04 Fiscal Plan C-205RESOLUTION NO. CC-08-07-00-04 A RESOLUTION OF THE COMMON COUNCIL OF THE CITY OF CARMEL, INDIANA ADOPTING A WRITTEN FISCAL PLAN AND DEFINITE POLICY FOR AN AREA KNOWN AS THE ANNEXATION TERRITORY IDENTIFIED IN ORDINANCE NO. C-205 WHEREAS, Indiana Code Section 36-4-3-3.1 requires the City to develop a written fiscal plan and establish a definite policy, by resolution of its legislative body, that meets the requirements of Indiana Code Section 36-4-3-13 for the area proposed to be annexed into the City by Ordinance No. C-205 (the "Annexation Territory"); and WHEREAS, this written fiscal plan and definite policy adopted by resolution complies with the requirements of Indiana law to provide services of a non-capital nature to the Annexation Territory within one (1) year after the effective date of the annexation in a maxmer equivalent in standard and scope to those non-capital services provided to areas within the current corporate boundaries, regardless of similar topography, patterns of land use, and population density; and WHEREAS, this written fiscal plan and definite policy adopted by resolution complies with the requirements of Indiana law to provide services of a capital nature to the Annexation Territory within three (3) years after the effective date of the annexation in the same manner those services are provided to areas within the current corporate boundaries, regardless of similar topography, patterns of land use, and population density and in a manner consistent with federal, state and local laws, procedures, and planning criteria; and WHEREAS, the level of services set forth in this plan is the same level of municipal services, both capital and non-capital, to other segments of interstate highway and associated right-of-way within the corporate limits of the City. NOW, THEREFORE, BE IT RESOLVED by the Common Council of the City of Carmel. Indiana, as follows: 1. The above recitals are incorporated herein by this reference and shall be deemed part of the City's written fiscal plan and definite policy for the Annexation Territory. 2. The Common Council of the City of Carmel, Indiana, hereby adopts a written fiscal plan and definite policy as the written fiscal plan and definite policy for the Annexation Territory, more particularly described on Exhibit A attached hereto. 3. Since the Annexation Territory consists exclusively of interstate highway and associated right-of-way falling within the jurisdiction of the Indiana Department of Transportation, it is the expectation and understanding of this Council that there will be no services requested or required, either of a non-capital or capital nature. Page One of Three Pages 4. The Annexation Territory is currently within the fire, ambulance and police protection service area of the City of Carreel. 5. The Annexation Territory does not have a population density of at least three (3) persons per acre and has not been subdivided through separate ownership into lots or parcels such sixty percent (60%) or more of which are one (1) acre or less in size. 6. There is no estimated cost to any City department for the planned services to be furnished to the Annexation Territory. 7. The City does not anticipate that the employees of any other governmental entities will have their jobs eliminated by virtue of the proposed annexation. However, if any such jobs are eliminated, the City will provide notice of any City job openings to such displaced employees in the same manner as it provides such information to the general public. 8. 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, and such unconstitutionality, invalidity or unenforceability shall not aft~ct any of the remaining phrases, clauses, sentences, paragraphs and sections of this Resolution. 9. This Resolution shall be in full force and effect from and after the date of its passage, execution by the Mayor, and such publication as is required by law. ~OUNCIL FOR ATTEST~A,~,%,,' - Diana L. Co~dray, IXMC, C~eeasurer Ordinance No. CC-08-07-00-04 Page Two of Three Pages [ [ h~i Rcstlkmoa ptepal ed by Dt,uglas C Haney, Camlel City Attorney] Presented by me to the Mayor of the City of Carmel, Indi a, on the f//~ day of .2000. Diana L. Cordray, IAMC, ~reasurer 2000. rainard Mayor Diana L. Cordray, IAMC, ClerTasurer Ordinance No. CC-08-07-00-04 Page Three of Three Pages City of Carreel, Indiana 1-465 Corridor Annexation Area Fiscal Plan July 31, 2000 Wabash Scientific, inc. Michael R. Shaver, President 4742 Bluffwood North Drive Indianapolis, IN 46228 (voice) 317/299-9529 (fax) 317/329-9885 (e-mail) wabsci@aol.com EXHIBIT A Table of Contents Executive Summary of the Fiscal Plan .............................................................................. Description of the Annexation Area .................................................................................. Informal Description of the 1-465 Corridor Annexation Area ............................... Development/Land Use in the Area ....................................................................... Annexation Policies ........................................................................................................... Statement of Purpose ............................................................................................. Policy Conclusions ................................................................................................ Statement of Fact ................................................................................................... Statutory Considerations .................................................................................................... Contiguity .............................................................................................................. Population Density ................................................................................................. Width of 1-465 Corridor ........................................................................................ "Urbanized" Area ................................................................................................... Land Use ................................................................................................................ Conclusions Regarding Statutory Issues ................................................................ Providing Municipal Services ............................................................................................ Non-Capital Services ............................................................................................. Police Protection ........................................................................................ Fire Protection ............................................................................................ Street Department ...................................................................................... Animal Control .......................................................................................... Health Department Services ...................................................................... Emergency Medical Services ..................................................................... Parks Department ....................................................................................... Department of Community Services: Planning & Zoning ......................... City Administration ................................................................................... Municipal Court ......................................................................................... Capital Services ..................................................................................................... Highways & Roads .................................................................................... New Fire Facilities ..................................................................................... Fire Hydrants ............................................................................................. Water ........................................................................................................ Sewers ........................................................................................................ Drainage ..................................................................................................... Street Lights on Federal Highways ............................................................ Conclusions ............................................................................................................ Comparable Service to Comparable Areas ........................................................... 1-465 Corridor Annexation Area: Fiscal Plan 2 US3 1 Highway Corridor ............................................................................ US431 Highway Corridor .......................................................................... Table of Comparability .............................................................................. Plan for Extending Municipal Services ................................................................. Methods of Financing ............................................................................................ Property Tax Revenues .............................................................................. Financing in the Event that Projections Are Inaccurate ............................. Conclusions & Recommendations ..................................................................................... Conclusions ............................................................................................................ Recommendations .................................................................................................. Employees of Other Govemment Agencies ...................................................................... Extending Political Jurisdictions ....................................................................................... Exhibit A: Legal Description of Annexation Area ............................................................ 1-465 Corridor Annexation Area: Fiscal Plan 3 Executive Summary of the Fiscal Plan The Fiscal Plan detailed in the attached report examines the technical parameters and considerations as required by Indiana statute. The 1-465 Corridor Annexation Area (the "Annexation Area") contains approximately 30 acres of land, 100% of which is dedicated to the sole and exclusive use as interstate highway right of way, in compliance with IC 36-4-3-2.5. The annexation action is being undertaken for procedural and technical reasons only. The proposed annexation will generate $0 in additional municipal revenue as well as $0 in additional municipal service costs, thereby having no discernable fiscal impact on the municipality. The direct purpose of this proposed annexation of the Annexation Area is to accommodate the voluntary annexation (IC 36-4-3-5) of new development in conjunction with the provision of City services to that development. This proposal is emirely in compliance with the annexation policies of the City of Carmel, as discussed herein. With these considerations, it is appropriate for the City of Carmel to undertake the annexation of the Annexation Area for the purpose of establishing a basis of contiguity fbr the future voluntary annexation of new development along the 1-465 Corridor. Inasmuch as the statute bases a great proportion of the requirements for annexation on contiguity, it is important to the future development of the City of Carmel that the Annexation Area be annexed to the City for technical and legal reasons, despite the fact that such an annexation would have no fiscal or operational impact on the municipality. 1-465 Corridor Annexation Area: Fiscal Plan Description of the Annexation Area The area proposed for annexation (the "Annexation Area") lies 100% within the right of way of the 1-465 interstate highway corridor located on the north side of Marion County and the south side of the City of Carmel in Hamilton County, Indiana. Informal Description of the 1~465 Corridor Annexation Area The Annexation Area is generally described as running diagonally from northwest to southeast. The (noah) western boundary of the Annexation Area is located at College Avenue, just south of 101 st Street. The south eastern boundary of the Annexation Area is located at 96th Street, just east of the Old Monon Rail corridor (now a jogging/bike path). The Annexation Area contains approximately 30 acres which are exclusix, ely used as public, interstate highway corridor and contains no privately owned land. Due to the narrow width and extended length of the proposed annexation area, the contiguity of the Annexation Area to the City of Carmel is less than 12.5%. A legal description of the Annexation Area is contained in Exhibit A to this report. Development/Land Use in the Area The Annexation Area is 100% developed as a high-intensity, limited- access, interstate highway, transportation corridor. There is no other development within the Annexation Area, and no private ownership of land within the area, as defined. The Annexation Area is used exclusively for high-volume, interstate highway transportation purposes, and will continue to be used in this manner in perpetuity. Therefore, this annexation action will have absolutely no impact on any persons, surrounding land uses or other development. Also, the traffic volume in the Annexation Area is very heavy, as is common with such highway corridors. The corridor's limited access design has no interchanges within the Annexation Area, and therefore, this annexation cannot possibly have any impact on local transportation issues, either fiscal or operational. 1465 Corridor Annexation Area: Fiscal Plan Annexation Policies The City of Carmel undertook the specific task of developing formal annexation policies by executing a contract for consulting assistance in July, 2000. The City Council is currently in the process of establishing a comprehensive set of annexation policies which will be used to govern the process associated with all future annexation actions by the City. These policies are not yet complete and final, but are expected to be complete and final by December, 2000. Interim annexation policies will be followed during the consideration of the annexation of the Annexation Area. Statement of Purpose There are several specific purposes for the proposed annexation action. First, legal requirements for annexation include the requirement that any armexation which borders on a roadway must include the roadway in the annexed area. This means that adjacent roadway right of way must be included in the annexation action, thereby transferring certain local responsibilities for maintenance. This requirement, however, has not been consistently practiced throughout the state, and in the case of the Annexation Area, it is appropriate to annex the Annexation Area with respect to both existing City boundaries and future annexation actions. Second, Indiana statute establishes that contiguity is a primary requirement for annexation. Any area proposed for annexation must meet certain contiguity requirements in order to comply with indiana statute. Since the Annexation Area cuts across the US 31 highway corridor north of 96th Street, the Annexation Area must be annexed to the City of Carreel in order for the City to meet statutory standards for future annexation of territory adjacent to the Annexation Area. If the Annexation Area is not annexed, the contiguity with these developed and undeveloped territories is lost and future voluntary annexations are effectively blocked. even though the City of Carmel might provide needed services to these areas. The third purpose of the Annexation Area is to facilitate the voluntary annexation of new development adjacent to the Annexation Area. This includes areas near 96th Street and Westfield Boulevard, at the east end of the Annexation Area which are currently under development. These new developments have requested to be included within the corporate limits of the City of Carmel through voluntary annexation. Specific issues with regard to the voluntary annexation of these new developments will be addressed in separate documents. 1-465 Corridor Annexation Area: Fiscal Plan Policy Conclusions The City of Carmel has consistently and publicly acted toward the end that the entirety of Clay Township (the "Township") would eventually be incorporated into the City of Carmel. To argue otherwise would be even more absurd than the argument that Washington Township (in Marion County) is not a part of Indianapolis. Carmel has undertaken to plan for the development of the entire area, has provided for utility service and treatment capacity for the entire area, and has formally declared the limits of its future boundaries to coincide with those boundaries of the Township. In fact, the only impediment to annexation was and is the issue of contiguity. At this time, it would appear that the City's eastern boundaries are more than sufficient to meet the statutory parameters to annex everything east of Spring Mill Road, providing the annexation actions are well planned and carefully executed. In addition, the City's western boundary has sufficient contiguity to extend its boundaries substantially westward (but perhaps not to consume the entire western portion of the Township in one action). In addition, there remain a number of "pockets" of unincorporated areas which are more than 50% contiguous to the City (the statutory minimum is 12.5%) which could be annexed immediately. These factors indicate that the City most likely could meet any statutory test for annexation, even with the most cursory annexation planning. The City, however, realizes the absolute distinction between existing development and future development in conjunction with annexation. Existing development generally contains existing population, and it is possible that the existing population may not want annexation. Therefore, the possibility exists that a perfectly legal annexation would have a political fallout. Such is the price of previous inaction. At the same time, the City also recognizes that the previous policies need not be projected to new development. In other words, now that the City is taking specific and public steps to develop annexation policies, it should consider whether special steps should be taken to annex new development before it is actually occupied. By annexing development before it is occupied, the City generally foregoes a substantial amount of the political problems which accrue as the new development becomes occupied. For these reasons, it is recommended that the City continue to develop annexation policies which recognize and accommodate the difference between these two annexation situations. 1-465 Corridor Annexation Area: Fiscal Plan Statement of Fact The City of Carreel, with the full cooperation of Township authorities, has developed an integrated system of controlling growth in the metropolitan area, including the entirety of the Township, through the vigilant control of new development within the Township at large. By establishing and implementing consistent development standards between the incorporated City and the unincorporated area of the Township, the City has effectively provided for the smoothest possible transition for municipal annexation. It has protected the interests of municipal taxpayers while encouraging high quality growth, and in so doing, the Cannel-Clay Plan Commission has helped to develop one of the highest standards for quality of life which exists anywhere in Indiana. Similar joinder agreements for parks and fire protection have virtually eliminated any disparity of services between the unincorporated and the incorporated areas of the Township. While these preparations are clear evidence of excellent city planning, the presence of such high-quality municipal services throughout the Township causes some confusion with respect to annexation/incorporation. To further underscore the City's intent, the City has established boundary agreements with adjacent municipalities which prescribe an area for Carreel which consists of the entire area within the Township. Cannel, Westfield, Noblesville and Fishers all have agreed on the long term boundaries of the incorporated communities. Of the Ibm municipalities, Cannel is the closest to being landlocked. As such, the recent statutory requirement that the City develop and formally pass a municipal resolution as to its annexation policies represents only a different technique for affirming activities which the City had previously undertaken. In effect, the City has had annexation policies all along, however, they were contained within the overall effort for well-planned growth of the City. Based upon theses premises, the proposed annexation of the Annexation Area complies with the annexation policies of the City of Carmel as stated herein. Although the land within the Annexation Area is totally dedicated to service as a public transportation artery, and although it requires no municipal services, the annexation of the Annexation Area will supply the future contiguity needed for the annexation of new development, in accordance with statutory parameters. 1-465 Corridor Annexation Area: Fiscal Plan Statutory Considerations The following discussion is directed toward the statutory parameters of annexation as it relates to the Annexation Area. contiguity The Annexation Area is less than 12.5% contiguous to the corporate limits of the City. Population Density Since the Annexation Area is 100% dedicated to use as a public thoroughfare right of way, the population density of the Annexation Area is 0.0 persons per acre. Width of 1-465 Corridor The Annexation Area is more than 150 feet wide. "Urbanized" Area The Annexation Area does not meet the statutory definition of "urbanized area" insofar as that definition relates to the traditional consideration of industrial, commercial and/or business development. The area is 100% dedicated to interstate highway right of way, and has no private development of any kin& However, as a matter of practicality, any interstate highway is, in fact, urbanized. No urban area in any nation on earth exists without streets, roads and highways. In most communities, the transportation network has many elements, and each corridor has different capacities for handling traffic. Interstate highways such as 1-465 were built specifically to handle traffic associated with urban development, especially commuter traffic consisting of people moving to and from places of employment or commerce. As such, the Annexation Area is actually an operative part of an Urbanized Area. Wabash Scientific is not prepared to acquiesce to the standard definition of"urbanized area" in the case of the Annexation Area. No industrial or business park (both of which would meet the standard definition of "urbanized area") can exist without the appropriate support of transportation infrastructure. Therefore, the specific parcels which are privately owned and developed for private industry and commerce cannot be separated from the transportation corridors that serve them, any more than they can be separated from the machinery that manufactures their products. As such, it is Wabash Scientific's position that the Annexation |-465 Corridor Annexation Area: Fiscal Plan 9 Area meets the definition of an "Urbanized Area", even though no parcel within the area is zoned for industrial or commercial use. We wish to close this issue with one final thought. According to Indiana statute, an area could be zoned for industrial development, even though there is no development of any parcels. The statute includes special provisions for the annexation of industrial parks in this manner. As such, the mere act of zoning an undeveloped parcel as an industrial area would meet at least part of the standard definition of "urbanized," even though the land, itself, was totally undeveloped. Land Use The land use of the Armexation Area is 100% dedicated to transportation right of way. Therefore, the proposed annexation action has no impact on any person or persons, nor does it have any direct impact on any property owners with regard to land use. The land use rights of the Indiana Department of Transportation (INDOT) supercede any rights of the City of Carmel with regard to interstate highway corridors. Conclusions Regarding Statutory Issues Indiana statute is clear in stating that a substantial portion of its statutory requirement is based on the contiguity between the existing municipality and the area proposed for annexation. Since the Annexation Area is adjacent to the southern boundary area of the City of Carmel, the failure to annex the area would effectively block the City from the future annexation of areas contiguous to the Annexation Area. The statute also requires that any annexation of territory adjacent to a roadway must annex the roadway (IC 36-4-3-2.5). Although this parameter was primarily intended to require municipalities to take over the maintenance responsibilities for local roads and county highways adjacent to the corporate limits of the municipality, the letter of the law does not distinguish between interstate highways and other roadways in this matter. Therefore, it is appropriate to annex the Annexation Area for the purpose of meeting the letter of the statute, as well as to enable the City to establish a basis of contiguity for future annexations of new development along the 1-465 Corridor. 1-465 Corridor Annexation Area: Fiscal Plan Providing Municipal Services The specific developmental parameters associated with the Annexation Area reduces the issue of the provision of municipal services to a purely technical argument - generated primarily to satisfy statutory requirements. Clearly, the statute did not directly address the rare case of annexation of an area which was 100% federal highway right of way. although the annexation of highway right of way is often undertaken in combination with larger areas. Since the Annexation Area is 100% federal right of way, which does not require municipal services, the following presentation is made for the purpose of satisfying statutory requirements. Non-Capital Services Under Indiana statute, all non-capital services are to be provided within one year of the effective date of annexation. By adopting this Fiscal Plan, the City hereby agrees and commits to offering all non-capital municipal services as itemized below no later than one year after the approval of the annexation of the Annexation Area, as required by statute. Non-capital services are broken down in the following sections of the Fiscal Plan. POLICE PROTECTION The Annexation Area is under the specific jurisdiction of the Indiana State Police for police protection services. This jurisdiction will not change as a result of the annexation. Local police may still be called upon to assist state police in some matters, but primary responsibility for police protection will remain with the State Police. The projected fiscal impact of the annexation of the Annexation Area on police services is therefore projected to be $0 per year. FIRE PROTECTION The fire protection responsibilities for the Annexation Area will not change as a result of the annexation, The Annexation Area is not populated, nor is there any development which would require fire protection in the common sense of the word. However, fire and emergency calls would be made for accidents and vehicle fires along the Annexation Area, just as they are made at the present time. No new fire stations will be required to serve the Annexation Area. At this time, the Cannel Fire Department responds to some emergencies in the Annexation Area. Therefore, such services are already provided to that area. The projected cost of fire protection services due to the annexation of the Annexation Area is $0 per year. 1-465 Corridor Annexation Area: Fiscal Plan jr jr STREET DEPARTMENT The normal operations of the Carreel Street Department include such things as street repairs, leaf collection, snow removal, trash collection, mowing and tree trimming within public rights of way, and traffic control. The nature of the Annexation Area, however, is such that the area contains 0 lineal feet of local streets requiring repair, maintenance or traffic control, 0 acres of city/local right of way requiring snow removal, mowing or tree trimming services, and 0 resident population for the generation/removal of residential trash. It is appropriate to note, however, that the state/federal highway right of way is currently and will continue to be mowed under INDOT contract and within the parameters established by INDOT for interstate highway maintenance. Similarly, snow removal, maintenance, repairs and traffic control within the Annexation Area is also the responsibility of INDOT. These responsibilities will not change as a result of the proposed annexation. Therefore, the projected annual cost of the services provided by the Carreel Street Department to the Annexation Area is $0. Any required services of the Cannel Street Department will be provided within one year, as required by statute. However, no such services are projected to be necessary, due to the nature of the Annexation Area. ANIMAL CONTROL The need for animal control within the Annexation Area is generally acknowledged to be limited to the removal of the carcasses of animals killed in vehicular accidents. Within this state/federal highway right of way, these animal carcasses are removal by INDOT personnel, either directly or by contract. Therefore, there is no projected increase in services resulting from the proposed annexation. The projected increase in the cost of these services to the Annexation Area is $0 per year. HEAL TH DEPARTMENT SERVICES The nature of the Annexation Area as a federal highway right of way precludes the necessity of providing health department services within this area. The Annexation Area has no private development, no population and is 100% utilized as a highway corridor. These factors combine to indicate that no health department services will be required (except the minute possibility that there would be an accident involving a vehicle carrying passengers suffering from a contagious disease). As there is no demonstrable need for health department services except in the most unlikely of situations, the projected annual cost of such services to the Annexation Area is $0. 1-465 Corridor Annexation Area: Fiscal Plan EMERGENCY MEDICAL SERFICES The Emergency Medical facilities of the City of Carreel and Hamilton County currently share the responsibility for responding to emergency situations within the Annexation Area. These responsibilities will not be altered by the proposed annexation. Therefore, the projected cost of providing additional emergency medical services to the Annexation Area is $0 per year. PARKS DEPARTMENT The Annexation Area is 100% state/federal highway right of way. As such, there are no additional demands on parks created due to the proposed annexation. Therefore, the projected cost for providing additional parks services to the Annexation Area is $0 per year. DEPARTMENT OF COMMUNITYSERFICES: PLANNING & ZONING DOCS has no jurisdiction within the Annexation Area, because 100 % of the land within the Annexation Area is state/federal highway right of way. The land cannot be subdivided or developed for residential, commercial or industrial use, and it must continue to be used for its intended purpose an interstate highway corridor. Since DOCS will have no jurisdiction within the Annexation Area, the projected cost of providing such service to the Annexation Area is $0 per year. CITY ADMINISTRA TION The Annexation Area contains no property that would come under the operative jurisdiction of the City of Carmel in any detectable manner. No regulation or service of the City is projected to have any applicability to the Annexation Area. Therefore, there is no feasible manner in which the administrative services of the City of Carreel would be relevant to the proposed annexation. For these reasons, the projected cost of municipal administration services resulting from the annexation of the Annexation Area is $0 per year. MUNICIPAL COURT The proposed annexation will have no impact on the operation of the municipal court. The projected cost of providing municipal court services to the Annexation Area is $0 per year. 1-465 Corridor Annexation Area: Fiscal Plan Capital Services Indiana statute provides that municipal capital services be provided within 3 years of an annexation action. The nature of the Annexation Area, however, being 100% state/federal highway right of way, is such that no municipal capital services are to be offered within the Annexation Area. In order to meet the letter of the statute with regard to this Fiscal Plan, however, the following breakdown and discussion of capital services is offered. HIGHWAYS & ROADS Since 100% of the roads within the Annexation Area are state/federal interstate highways, the City of Carmel will be required to undertake $0 in the cost of developing new roads within the Annexation Area. It is the sole responsibility of INDOT to fund all development, expansion and maintenance of interstate highway corridors. Therefore, the projected capital cost of providing new or improved roadways within the Annexation Area is $0. NEW FIRE FACILITIES Although fire services are considered to be non-capital municipal services, it is clear that the development of new fire stations is a capital cost which must be borne by the municipality. The Annexation Area, however, contains no development or other land which would increase the current demand for fire services, nor does it contain any improvement or circumstance which would require the development of new fire facilities or new fire fighting capacity. As such, the annexation of the Annexation Area is projected to result in $0 in increased capital cost for new fire fighting facilities. FIRE HYDP~NTS The Annexation Area will have no fire hydrants installed for the purpose of fighting fires within the Annexation Area. At this time, and in the future, any fires to be fought within the Annexation Area may utilize fire hydrants located in the neighborhoods adjoining the Annexation Area (which serve the fire protection needs of the developments adjoining the area), or may be fought using tanker vehicles which carry their own water supply. Therefore, the projected cost of providing fire hydrants within the Annexation Area is $0. WA TE R The Annexation Area has water lines running beneath the highway pavement for the purpose of providing municipal water services to 1-465 Corridor Annexation Area: Fiscal Plan adjacent private developments. Since there is no private development or water consumption within the Annexation Area, per se, there has been no need to tap these water facilities for use within the Annexation Area. The elevated design of the interstate highway in this area means that the water lines are located substantially below the grade level of the roadway. However, the water service is still present and fully available if the need were to arise and be determined appropriate by INDOT. Due to these considerations, the projected cost of providing water service to the Annexation Area is $0. SEWERS The Annexation Area has sewer lines running beneath the highway right of way. These lines were constructed to provide sewer service to private developments along the 1-465 Corridor, including residential and commercial development. At this time, these existing developments have access to the sewer facilities afforded to them, although the Annexation Area, per se, has no need for such services. As in the case of water service, sewer service is available within the Annexation Area, but the nature of the land use within the Annexation Area makes such service unnecessary. Therefore, the projected capital cost of providing sewer service to the Annexation Area is $0. DRA INA GE Drainage facilities within the Annexation Area are designed, constructed and maintained by INDOT. The traditional interstate highway drainage design includes stormwater catch basins in heavily paved areas with high runoff' coefficients, as well as drainage ditches with heavy vegetative cover designed to collect, absorb and slow the runoff associated with the highway fi~cility. The design is executed in a manner that draws the water off of the pavement as quickly as possible, while maximizing its retention/detention within the immediate drainage system and slowing its progress toward any surface waterways. This design prevents and/or minimizes flooding associated with the presence of the highway facility. as well as minimizing the pollutant loads from such things as petroleum, grits and road salts associated with the vehicular traffic. As with other capital and non-capital services, the drainage service is paid 100% through state/federal funding on interstate corridors. Consequently, the projected local capital cost for drainage facilities associated with the Annexation Area is $0. 1-465 Corridor Annexation Area: Fiscal Plan STREET LIGHTS ON FEDERAL HIGHWAYS The development, installation and maintenance of street lights along federal interstate corridors is 100% paid by through state and federal funding. The Annexation Area will have no locally installed or maintained street lights because there are 0 lineal feet of existing local roadway within the Annexation Area. Therefore, the projected capital cost of providing this service to the Annexation Area is $0. Conclusions The Annexation Area is important to the future growth of the City of Carreel for procedural purposes only, due primarily to the parameters of annexation under Indiana statute. The City will not be required to provide any capital or non-capital municipal services to parcels within the Annexation Area as a result of this annexation. Therefore. the cost of providing such municipal services is projected to be $0 per year. At the same time, the annexation of the Annexation Area is projected to produce $0 per year in additional revenue to the City. As a practical matter, the annexation of the Annexation Area carries no fiscal or developmental impact to the City or the local area, except insofar as the City would be able to establish future contiguity for the purpose of annexing new development along the 1-465 Corridor. Comparable Service to Comparable Areas The issue of identifying "comparable areas" under Indiana statute was left somewhat unclear by recent statutory amendments. In Fact, the amended statute states that a full range of municipal services are to be afli>rded the annexed area, regardless of issues of land use, topography, and so forth, These caveats were added to the state statute because municipalities were using this provision as a loophole to avoid the cost of providing property owners with appropriate and useful municipal services. At the same time. varying configurations of/and use require varying configurations of municipal services. Clearly, municipal services to an industrial park or airport are different in nature and intensity t~om the municipal service requirements of an apartment complex. As such, it is appropriate to consider "comparable areas" as a means of determining any municipal services which are required as a result of that land use. The following "comparable areas" are therefore cited. US 31 HIGHW,,t Y CORRIDOR The City of Carmel previously annexed the US 31 Highway Corridor into the incorporated City of Carmel. The US 31 Corridor is very similar to the 1-465 Corridor in that both are limited access highway corridors, 100% 1-465 Corridor Annexation Area: Fiscal Plan dedicated to land use as public thoroughfares. No other land use will be allowed within the corridors, and since no persons or businesses are located therein, the requirement for municipal services is limited to those services which are necessary to maintain the area in a manner that allows it to function safely in its intended use. As the intended use of a highway corridor is the operation of vehicular traffic, municipal services will be extended, as shown in the table below, to support that land use. US 431 HIGHWAY CORRIDOR Precisely the same relationship exists with regard to the US 431 Corridor. Again, the land use of the US 431 Corridor is the safe operation of vehicular traffic. As such, the municipal services required to maintain and facilitate that land use are precisely the same as for any major federal highway corridor. These municipal services - offered both by INDOT and the City of Cannel - are itemized in the table below. TABLE OF COMPARABILITY The following table summarizes the municipal services for each of the comparable corridors, as well as for the 1-465 Corridor (including the Annexation Area). Comparable Services Table US 31 US 431 1-465 Police PatroLs by State Police yes yes yes Supplemental Police Assistance by City Police yes yes yes Fire Protection by City of Carreel yes yes yes Emergency Medical Assistance by City of Carmel yes yes yes Road/Street Repairs by INDOT yes yes yes Road/Street Repairs by City of Carreel n/a n/a n/a Snow Removal by INDOT yes yes yes Traffic Control by INDOT yes yes yes Snow Plowing by City of Carnnei n/a n/a n/a Administrative Services by City of Carrnei n/a n/a n/a Leaf Collection by INDOT n/a n/a n/a Trash CoLlection by City of Carreel n/a n/a n/a Mowin9 and Tree Trimming by INDOT yes yes yes 1465 Corridor Annexation Area: Fiscal Plan Animal Control {removal of carcasses) by INDOT yes yes yes Capital & Non-Capital Parks services (jointier) n/a n/a n/a Health Department Services through County n/a n/a n/a Sewer & Water Utilities from City of Carmei yes yes yes Capital Drainage Services by INDOT yes yes yes Capital Drainage Services by City of Carmel n/a n/a n/a Capital Street Lights by INDOT yes yes yes Capital Street Lights by City of Carmel n/a n/a n/a Plan for Extending Municipal Services The proposed annexation of the Annexation Area will not require the extension of any services which are not already afforded the area~ Inasmuch as 100% of the area within the Annexation Area is uniquely and permanently dedicated to use as state/federal highway right of way, there will be no requirement for providing municipal services to that area. As such, the cost of such services is projected to be $0 and the revenues generated through the annexation of the Annexation Area is projected to be For these reasons, the plan for extending municipal services is that all services required by and appropriate to the land use within the Annexation Area are currently being provided and any other municipal services within the Annexation Area which are later found to be necessary and required by INDOT will be negotiated separately. Methods of Financing Annexation of the Annexation Area will not generate any demand for municipal services within the area. Therefore, there is no projected cost to the City as a result of the proposed annexation action. Based on this projection, it is not necessary to finance any capital or non-capital services resulting from the annexation of the Annexation Area, because there are no such services projected to occur therein. PROPER TY TAX RE VENUES Since the Annexation Area is 100% owned by the State of Indiana, it will generate $0 in property tax revenues to the City. A revenue stream orS0 will therefore not support any issuance of municipal debt or repayment of any bond. The projected cost of extending municipal capital and non- 1-465 Corridor Annexation Area: Fiscal Plan capital services to the Annexation Area is $0. FINANCING IN THE EI/ENT THAT PROJECTIONS ARE INACCURATE The projected cost of services resulting from the annexation of the Annexation Area is $0. If this projection later is found to be inaccurate, and it is determined that additional municipal services must be supplied to the Annexation Area for some reason, such costs will have to be paid other revenues of the City, including property tax and COlT revenue streams. Given, however, that the entire Annexation Area is highway right of way, the likelihood of such an inaccuracy is extremely remote. Employees of Other Government Agencies This annexation action is projected to have no impact on the employees of any other government agency at a township, county or state level. The City is not aware of any employee from any government agency who will lose their job because the Annexation Area is annexed into the incorporated City of Carmel. However, if it is later determined that the annexation of the Annexation Area by the City of CmTnel does have such an impact, the City will consider any displaced person tbr employment at a comparable position within City government. This consideration, however, is not and shall not be construed as a commitment by the City to hire any individual, whatsoever. Extending Political Jurisdictions The Annexation Area contains 0 population, and holds no developable land which could later support population. As a result, the annexation of the Annexation Area will have no impact on political jurisdictions at the local/municipal, county or state levels. The annexation, however, will require a technical amendment to the map of political districts to include the Annexation Area in one or more of the City' s Common Council districts, as well as the adjustment of the technical boundaries of certain other elected offices. As stated, however, these adjustments are purely technical in nature and will not affect any voters or other citizen residents of the Annexation Area. 1-465 Corridor Annexation Area: Fiscal Plan ] 9 Conclusions & Recommendations Conclusions The analysis of costs and revenues indicates that the annexation of the Annexation Area will have no fiscal impact on the City, due to the fact that 100% of the Annexation Area is irreversibly committed to serve as federal highway right of way. As such, the Annexation Area will have no population and no regulated land uses within the jurisdiction of any local authority. At the same time, the Annexation Area does have some contiguity with the boundaries of the City of Carreel, and the fai lure to include this area within the corporate limits of the City would obviate the future capacity of the City to annex and serve an area immediately north of 96th Street and south of the Annexation Area. In addition, the secondary impact of the failure to annex the Annexation Area would be that future development along the 1-465 Corridor could not be included in the City because future contiguity would be blocked by the 1-465 Corridor (if it was not annexed). The combination of these two impacts suggest the conclusion that the annexation of the Annexation Area is important to the future growth of the City of Carmel, even though it generates neither municipal revenue nor service cost. Recommendations Based on the information presented in this Fiscal Plan and the cnnclusions cited above, it is recommended that the City of Carmel begin the statutory process necessary to annex the area referred to herein as the 1-465 Corridor "Annexation Area". This annexation will make it possible for the City of Carmel to undertake future voluntary annexation of new development. It is the intent of the City to undertake only voluntary annexations on the basis of contiguity offered by the Annexation Area. The City could annex a larger area by including private development, but does not seek to do so at this time. 1-465 Corridor Annexation Area: Fiscal Plan 20 I