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HomeMy WebLinkAboutCC-11-05-01-03 Fiscal Pl/C-214 SPONSORED BY: COUNCILORS KOVEN, SNYDER AND WILSON RESOLUTION NO. CC-11-05-01-03 A RESOLUTION OF THE COMMON COUNCI~OF THE CITY OF WHEREAS, well defined long term planning benefits the City of Carreel ("City") and the community at large; and WHEREAS, in recognizing the need and benefit of long term planning, the Common Council of the City of Carmel, Indiana ("Council") is desirous of annexing a certain portion of Clay Township into the City of Carreel (the "Annexation Territory"); and WHEREAS, the Annexation Territory is contiguous to the existing city limits of the City of Carmel; and WHEREAS, a map describing the boundaries of the Annexation Territory is attached hereto and incorporated herein as Exhibit A; and WHEREAS, a legal description of the Annexation Territory is attached hereto and incorporated herein as Exhibit B; and WHEREAS, the Annexation Territory consists of approximately 8SS acres; and WHEREAS, the Annexation Territory is needed and can be used by the City for its development in the reasonably near further; and WHEREAS, responsible planning and state law require adoption of a fiscal plan and a definite policy for the provision of certain services to annexed areas; and WHER. EAS, the Council is desirous of adopting a written fiscal plan for the Annexation Territory; NOW, THEREEFORE, BE IT RESOLVED by the Common Council of the City of Carreel of Carreel, Indiana, that: Section One: The Council adopts the Fiscal Plan ("Plan") prior to the adoption of the annexation ordinance for the Annexation Territory, a copy of which is attached hereto and incorporated herein as Exhibit C. Section Two: The purpose of the Plan is to confirm that the City is physically and financially able to provide municipal services to the Annexation Territory pursuant to the Plan. Section Three: The basic services described in the Plan become effective pursuant to the Plan upon adoption of Annexation Ordinance No. C-2 14. Section Four: TheCitywillprovideacopyofthePlanimmediatelyafieradoptiontothe landowner in the Annexation Territory who requests a copy from the Clerk-Treasurer of the City. Section Five: This Resolution shall be in full force and effect from the date of passage, and its publication, as provided by law. O nays. N.L. Ru If _ 2 ~Approved by me, the Mayor of the City of Carmel, Indiana this (~CC/]I day of ~, 2',: );' ~,L~ ,.~ ,, 2004, at ~ - , .m. ,,~ es Brainard, Mayor ATTE~ ~ Diana L. Cordray, Clerk-Tr~r Prepared By: 265549 Sue A. Beesley McHale, Cook & Welch, p.c. 1100 Chamber of Commerce Bldg. 320 N. Meridian Street Indianapolis, Indiana 46204 EXHIBIT A EXHIBIT B Legal Description of the Annexation Area Beginning at the point of intersection of the west right of way line of Gray Road with the southern boundary of parcel number 17-14-08-00-00-014 (which is currently coincident with the corporate limits of the City of Carmel), then proceeding westward along the southern boundary of said parcel to the southwest corner of said parcel, then proceeding westward along the southern boundary of parcel 17-14-08-00-00-012-002 to the southwest corner of said parcel, then proceeding northward along the western boundary of parcel 17-14-08-00-00-012-001 to the northwest corner of said parcel, which is coincident with the southwest corner of parcel 17-14-08-00-00- 012-001, then proceeding northward along the western boundary of parcel 17-14-08-00-00-012-001 to the northwest corner of said parcel, then proceeding generally northward, westward, eastward and northward, along the southern and western boundaries of parcel 17-14-08-00-00-011-001 and the western and northern boundaries of parcel number 17-14-08-00-00-011 to the southwest corner of parcel 17-14-08-00-00-008 (all of which coincide with the current corporate boundaries of the City of Carmel) then proceeding northward along the western boundary of parcel number 17-14-08-00-00-008 to the point of intersection with the southern right of way line of 106th Street (which is also coincident with the corporate boundaries of the City of Carmel), then proceeding generally eastward along the current corporate boundaries of the City of Carmel t (coincident with the south right of way line of 106 h Street) to the point of intersection with the eastern right of way line of Gray Road (which also coincides with the corporate limits of the City), then proceeding northward, along the eastern right of way line of Gray road, to the point of intersection with the northern boundary of parcel 17-14-04-00-00-019, then proceeding eastward, northward and eastward along the corporate limits of the City of Carmel (which also coincides with the northern and western boundaries of parcel number 17-14-04-00-00-019 to the point of intersection with the southern boundary of parcel number 17-14-04-00-00-018, then proceeding northward, along the current corporate limits of the City of Carmel (which coincides with the western boundaries of parcels 17-14-04-00-00-018 and 17-14-04-00-00-007 to the point of intersection with the southern right of way line of 116th Street (which is also coincident with the corporate boundaries of the city of Carmel, then proceeding eastward, along the corporate boundaries of the City of Carreel (which is generally coincident with the southern right of way line of 116th Street), to the point of intersection with the western right of way line of Hazel Dell Parkway (which is also coincident with the corporate limits of the City of Carreel), then proceeding generally southward, along the western right of way line of Hazel Dell Parkway (which coincides with the corporate limits of the City), to the point of interseetion with the southern boundary of Hamilton County (which generally coincides with 96 h Street), then proceeding westward, along the southern boundary of Hamilton County to the point of intersection with the eastern right of way line of Gray Road (which coincides with the corporate boundaries of the City of Carreel), then proceeding northward, along the corporate boundaries of the city of Carmel (generally coinciding with the eastern right of way line of Gray Road) to a point directly east of the southeast corner of parcel number 17-14-08-00-00-014.000, then westward to the point of beginning, and including all adjacent public road right of way inside Hamilton County which has not been previously annexed by the City of Carmel. 2 City of Carreel Hamilton County, Indiana Annexation Fiscal Plan Morgan Hart Area This Fiscal Plan may be inspected at the Department of Community Services, located on the 3rd floor of City Hall, Cannel, IN. Copies of the Fiscal Plan are available to the public for a fee in accordance with City ordinances. Questions related to this annexation can be directed to Michael Hollibaugh, Director, Department of Community Services, City of Carmel (317-571-2417). October 15, 2001 (Revised) Michael R. Shaver, President 4742 Bluffwood North Drive Indianapolis, IN 46228 (voice) 317/299-9529 (fax) 317/329-9885 (e-mail) wabsci@aol.com Executive Summary of Annexation Impact Summary of Fiscal Impact The following table summarizes the City's 2000 budget and projects the cost of providing municipal services to the annexation area. The costs associated with the annexation are projected to exceed revenues however proposed commercial and multi-family development will add substantially to the City's NAV to generate additional revenue in the future. Projected Impact of Annexation (Based on 2000 actual city budget expenditures) Department Budget % Tax Rate Mayor's Office $338,250 1.01% $0.0172 Fiscal (Clerk-Treasurer) $417,725 1.25% $0.0212 Legislative/City Council $3,359,400 10.04% $0.1707 Judicial $334,585 1.00% $0.0170 Law $262,719 0.79% $0.0134 Plan Commission $231,635 0.69% $0.0118 Administration $865,630 2.59% $0.0440 total administrative "overhead" $5,809,944 f7.37% $0.2952 Police $9,720,707 29.06% $0.4940 Street Department: Board of Works $5,514,340 16.48% $0.2802 Joinder Services Communications Center $1,243,235 3.72% $0.0632 Fire $10,268,881 30.69% $0.5218 Community Services $897,665 2.68% $0.0456 Total of Joinder Services $12,409,781 37.09% $0.6306 Total Budget (1.70) $33,454,772 100.00% $1.7000 Annexed Population 40 2000 City Population 35,000 impact on population 0. 11% annexed miles of roadway 2.22 Miles of existing streets 203.5 Impact on street department 1.09% Annexed NAV $577,290 Existing City NAV Impact on NAV Administration Budget (overhead) Impact on Police Department Impact on Street Department $710,000,000 0.08% 17.37% $9,720,707 $5,514,340 Subtotal of Non*Administrative Departmental Costs Estimated Fiscal Impact of Annexation, inc. overhead Estimated Property Tax Revenue n/a 0.08% 1.09% Budget Restoration $11,820 $7,904 $60,156 $68,060 $79,880 $9,814 The column marked "tax rate" at the far right represents the approximate proportion of the total budget/tax rate allocated to each department. These values fluctuate within a relatively narrow range, depending upon special needs and situations faced during the year, however, the percentages/proportions are valid for estimating purposes with respect to the proportion of the property tax revenues dedicated to each department. These proportions will be used in the Fiscal Plan form for projecting the cost of annexation. Indiana statute requires that the Fiscal Plan make reasonable estimates of the cost impact of the proposed annexation for purposes of determining the fiscal parameters of the decision. The above table is intended to provide a simple method of objectively estimating the fiscal impact of the proposed annexation, with specific emphasis on the property tax portion of the revenue streams, which compose the bulk of all city revenues and the only revenue stream which is totally controlled by the mtmicipality. Annexed NA V The proportionate increase in NAV resulting from the proposed annexation will generate a projected impact on the services of the police department, as well as other departments providing municipal services to the general public. In the case of Carmel, the cost of municipal services offered by the police department are expected to increase in approximate proportion to the estimated increase in NAV resulting from the proposed annexation. Based on this premise, the estimated NAV within the proposed annexation area is less than $600,000. Annexed Streets & Roads The annexation area is estimated to add less than a mile of streets and roads to the municipal thoroughfare system. The City of Carmel has approximately 203.5 miles of local streets and roads, therefore, the projected fiscal impact of the proposed annexation on the street department is estimated to be in approximate mathematical proportion to the proportion of new streets added to the municipal thoroughfare system. This proportionate increase is computed in the summary table, above. Summary of Municipal Service Impact Annexation Fiscal Plan: Carmel, IN 3 DEPARTMENTAL SER VICES PR 0 VIDED B Y JOINDER Many municipal services of the City of Cannel are offered through a j oindcr agreement with Clay Township. The following services arc provided through joinder agreements: fire protection, parks, planning/zoning/community development services, and the communications center. Since these joinder services are provided outside of the corporate limits of the City, the proposed annexation will generate no measurable fiscal impact on the operation of these departments. Instead, the revenues associated with these departments will simply bc transferred from the township budget to the municipal budget, thereby generating no net impact on the taxpayer. IMPACT ON POLICE DEPARTMENT The projected fiscal impact of the annexation on the police department is projected to be negligible; approximately proportionate to the increase in population. The estimated population is shown in the table above as less than 40 persons. This annexation, taken independently of other annexation actions, is not sufficient in size to justify an increase in the number of police officers, nor does it generate a need for significant additional police resources. In essence, the City normally considers the needs for new police resources on an annual basis as part of the budget negotiations, and any increase in the nccd for police resources (such as officers, equipment or office space) resulting from the combined or cumulative impact of many small annexations such as this will be accommodated through the annual budget process. Therefore, the table above reflects a projected fiscal need, which must bc considered annually in conj unction with the other annexation actions of the City to determine whether the combined impact of small annexations justifies the need for additional resources, as stated above. I-Iowcvcr, in this case, the existing patrol patterns of the police department, as well as the mutual aid services offered to the area, are such that the increase in police services is expected to bc negligible. IMPACT ON STREET DEPARTMENT The projected impact of the proposed annexation on the municipal operation of the Street Department is estimated to be in direct proportion to the number of miles of additional streets which will be added to the municipal thoroughfare system, as shown on the table above. As such, the fiscal impact of the proposed annexation on the Street Department will bc very small because Hazel Dell Parkway and other major roadways are already inside the corporate limits of the City and there are very few other roads in the annexation area which will become the responsibility of the Street Department to maintain. This proportionate increase is reflected in the table above. It should be noted that the bulk of the existing road corridors wcrc adjacent to the city boundaries as a result of previous annexations and are already inside the corporate limits of the city, as required by statute. IMPACT ON MUNICIPAL ADMINISTRATION The projected impact of the proposed annexation on the departments involved in municipal administration is measured as a matter of "overhead" for the continuing operations of municipal government. In Carreel, these municipal departments include the Mayor, City Council, Clerk Annexation Fiscal Plan: Carmel, IN 4 Treasurer, Department of Law, and Community Services. For purposes of projecting the fiscal impact of the proposed annexation, the cost of operating these departments is added as an overhead item in the table above. Legal Description of the Annexation Area Beginning at the point of intersection of the west right of way line of Gray Road with the southern boundary of parcel number 17-14-08-00-00-014 (which is currently coincident with the corporate limits of the City of Carmel), then proceeding westward along the southern boundary of said parcel to the southwest corner of said parcel, then proceeding westward along the southern boundary of parcel 17-14-08-00-00-012-002 to the southwest corner of said parcel, then proceeding northward along the western boundary of parcel 17-14-08-00-00-012-001 to the northwest corner of said parcel, which is coincident with the southwest corner of parcel 17-14-08-00-00- 012-001, then proceeding northward along the western boundary of parcel 17~14-08-00-00-012-001 to the northwest corner of said parcel, then proceeding generally northward, westward, eastward and northward, along the southern and western boundaries of parcel 17-14-08-00-00-011-001 and the western and northern boundaries of parcel number 17-14-08-00-00-011 to the southwest corner of pamel 17-1 4-08-00-00-008 (all of which coincide with the current corporate boundaries of the City of Carmel) then proceeding northward along the western boundary of parcel number 17-14-08-00-00-008 to the point th of intersection with the southern right of way line of l06 Street (which is also coincident with the corporate boundaries of the City of Carmel), then proceeding generally eastward along the current corporate boundaries of the City of Carmel (coincident with the south right of way line of 106t Street) to the point of intersection with the eastern right of way line of Gray Road (which also coincides with the corporate limits of the City), then proceeding northward, along the eastern right of way line of Gray road, to the point of intersection with the northern boundary of parcel 17-14-04-00-00~019, then proceeding eastward, northward and eastward along the corporate limits of the City of Carmel (which also coincides with the northern and western boundaries of parcel number 17-14-04-00-00-019 to the point of intersection with the southern boundary of parcel number 17-14-04-00-00-018, then proceeding northward, along the current corporate limits of the City of Carmel (which coincides with the western boundaries of parcels 17-14-04-00-00-018 and 17-14-04-00-00-007 to the point of intersection with the southern right of way line of 116th Street (which is also coincident with the corporate boundaries of the city of Carmel, then proceeding eastward, along the corporate boundaries of the City of Carmel (which is generally coincident with the southern right of way line of 118th Street), to the point of intersection with the western Annexation Fiscal Plan: Carmel, IN 5' right of way line of Hazel Dell Parkway (which is also coincident with the corporate limits of the City of Carmel), then proceeding generally southward, along the western right of way line of Hazel Dell Parkway (which coincides with the corporate limits of the City), to the point of intersection with the southern boundary of Hamilton County (which generally coincides with 96th Street), then proceeding westward, along the southern boundary of Hamilton County to the point of intersection with the eastern right of way line of Gray Road (which coincides with the corporate boundaries of the City of Carmel), then proceeding northward, along the corporate boundaries of the city of Carreel (generally coinciding with the eastern right of way line of Gray Road) to a point directly east of the southeast corner of parcel number 17-14-08-00-00-014.000, then westward to the point of beginning, and including all adjacent public road right of way inside Hamilton County which has not been previously annexed by the City of Carmel. Provision of Municipal Services Non-Capital services which are not covered under the joinder agreement with Clay Township will be provided within one year of the effective date of the annexation action. Within the context of the City of Carmel and its joinder service provisions, the non-capital services would include road maintenance by the Street Department and police protection by the Camel Police Department. Non-capital service costs will be paid through the annual revenues of the City, including property tax revenues and other municipal revenues, as appropriate. Capital services which are not covered by the joinder service agreements will be provided within 3 years of the effective date of the annexation. At this time, capital services are already provided to the annexation area and no additional capital services are projected to be required by the annexation area. If capital services are later identified as necessary and appropriate under the municipal service policies of the municipality, such capital services will be covered through the issuance of some form of municipal debt. Other Considerations Land Use & Zoning The annexation area is currently dominated by the operations of the Martin Marietta corporation's mineral extraction effort. The land upon which minerals are being extracted is generally considered a form of industrial development. The land use mix includes some commercial land uses, as well as proposed residential development, mineral extraction, and potential commercial land along 96th Street. Annexation Fiscal Plan: Carmel, IN 6 60% Subdivided The annexation area has been more than 60% subdivided prior to acquisition for mineral extraction, as well as other purposes, nnder the provisions of the comprehensive plan, zoning ordinance and subdivisions regulations which govern the j oinder services of the community (including the city and the township). A portion of the area has been proposed for residential development, upon completion of the mineral extraction effort, and a portion of the area will be developed as residential property within the next 12 months. Population Density Due to the fact that the land is developed for commercial/business use, the population density is less than 3 persons per acre. Fire Protection The annexation area already receives fire protection services from the City of Carmel, as explained herein. contiguity The annexation area is more than 25% contiguous to the corporate limits of the municipality. Needed & Can Be Used The annexation area is needed by the municipality for its development at the present time and in the reasonably near future. The mineral extraction uses, as well as future development proposals for providing residential development in portions of the area serves the needs of the city and the northern metropolitan area for these forms of development, as well as these natural/mineral resources, including the creation of employment/jobs for area residents. The municipality already provides many municipal services to the annexation area, as well as reviewing/approving development proposals for land within the area. Annexation Fiscal Plan: Carmel, IN 7 Itemization of Carmel Municipal Services The following itemization of city services is intended to specify and clarify the services which are offered to those properties which are located within the corporate limits of the municipality, as well as those services to be provided to areas specified for annexation. Any service which is not itemized herein is not to be considered a pan of the municipal services package. Also, the legislative and executive branches of municipal government are responsible for remaining vigilant in reviewing and improving the means of delivery of municipal services and the charges/revenues related thereto. As such, the delivery of municipal services is altered from time to time, and the charges/revenues related thereto are also adjusted to reflect statutory, budgetary, regulatory and other changes. In most cases, the primary funding source for the municipal budget is property taxes, however, other local taxes and fees are levied in the form of both taxes and specific user charges related to various services. The services itemized below are considered a part of the municipal service package, however, the funding for such services can be adjusted by the municipal authorities as a part of the normal conduct of municipal business. There are other items, including services and facilities, which fall into the classification of "development standards," as used herein. Generally speaking, the municipality acknowledges that various developments are undertaken to address various markets and the idiosyncracies of consumers within those markets. In order to address these idiosyncracies, the developer/owner offers differing amenities to attract customers/buyers. With that understanding, it is not the policy of the municipality to undertake the task of standardizing all of these development amenities as a result of annexation or municipal growth by allowing such services and/or facilities to be classified as "mtmicipal services." Public Safety: Police Protection All property within the corporate limits is served by security patrols of the municipal police department, as well as traffic patrols, criminal investigations and other services of the municipal police. As such, the municipal police department will respond to all calls within the corporate limits of the municipality, and will address those calls with appropriate procedures, based on the nature of the case. In certain cases, based entirely upon the idiosyncracies of the specific situation, the municipal police may call for assistance from other agencies in order to protect the public from harm. In addition, the County Sheriff sometimes calls for the additional assistance of the municipal police, or for response from the municipal police, again based on situational idiosyncracies. The Police Department is funded primarily through local property taxes and other local revenues, however, supplemental funding of various types is sometimes sought. Public Safety: Fire Protection (Joinder) Fire protection in the Carmel-Clay area is provided through a j oinder agreement which results in a jointly funded municipal fire department. All property within the corporate limits is served by the municipal fire department. As such, the municipal fire department will respond to all calls within the corporate limits of the municipality, as well as unincorporated Clay Township. In Annexation Fiecal Plan: (:;armel, IN 8 certain cases, based entirely upon the severity and idiosyncracies of the specific situation, the municipal fire department may call for assistance from other agencies, including the fire departments of neighboring communities, in order to protect the public. The Fire Department is funded primarily through local property taxes and other local revenues under the conditions of the joinder agreement, however, supplemental funding of various types is sometimes sought. Public Safety: Communications Center (Joinder) The municipal communications center is also funded under a joiner agreement with the Township and is responsible for handling and distributing emergency calls to the appropriate response agency. The communications center handles all calls, regardless of their source (inside or outside the corporate limits), and is generally funded through property taxes and other local revenues under the joinder. Public Safety: Emergency Services (Joinder) The municipal emergency services is also funded through ajoinder agreement with the Township, and includes a number of specific functions which are not directly related to police and fire protection, but include responses to traffic accidents, personal injuries, and other human emergency situations. Emergency services are also primarily funded through property taxes and other local revenues, under the joinder agreement. Municipal Administration The municipal administration includes the services of the executive (mayor), legislative (city council), judicial (city court), legal (city attomey) and fiscal (clerk/controller) branches of municipal government, as well as the Board of Public Works, which assists in managing the capital infrastructure systems of the municipality. These administrative services cover many topics related to the operations of the municipality under the local, state and federal statutory and regulatory structure, with the most singularly important function being that of managing and overseeing the operation of all municipal service departments. The functions and services of all municipal departments are managed by the municipal administration, which will be treated as 'overhead' to the other departments for accounting purposes. It should also be noted that these municipal departments and agencies often handle complaints from, and otherwise interact with, individuals and entities which are not within the corporate limits of the municipality. As such, the services of the municipal administration cannot be easily confined solely to the owners of property within the corporate limits of the municipality. At the same time, the municipal administration has no authority outside of the corporate limits of the municipality. Municipal administrative services are primarily funded through property taxes and other local revenues, however, the administration also seeks special ftmding of various types from time to time. Planning, Zoning, Building Inspection & Development Review (Joinder) The municipality also provides services related to the maintenance, development and improvement of property within the corporate limits, as well as property within the jurisdictional limits of the Plan Commission, as defined under Indiana statute and the j oinder agreement. These services relate directly to the management and maintenance of existing development (such Annexation Fiscal Plan: Carmel, IN 9 as health and fire inspections), as well as the review, approval and management of new development (to protect public health, safety and welfare, and protect local property values). Planning and zoning services are funded through property taxes and other local revenues as part of the general fund, and trader the joinder agreement. Municipal Streets The municipal street department is responsible for protecting the integrity of that portion of the local thoroughfare system which is not a part of the state or federal highway systems. This would include all local thoroughfares, collectors and streets, as designated by the Indiana Department of Transportation. Specific services within this general responsibility would include such services as: street improvements (capital), street maintenance/re-paving (including small- and large-scale repairs), snow removal, and street sweeping. Municipal street services are performed on an as- needed basis and are managed by the Board of Public Works, which assists in defining street project scope(s), setting priorities between projects and managing the available funds to the best advantage and best interests of the municipality as a whole. Irregularities in weather or other environmental conditions have a significant impact on the provision of, and demand for, municipal street services, which the Board of Public Works assists in managing. The Street Department is funded through a combination of funding sources, including property taxes and other local revenues, as well as other state and local funds. Street Repairs & Reconstruction The Street Department provides minor street repairs on a routine, as-needed basis. Pot holes are a normal consequence of winter weather and the Street Department makes an attempt to patch all streets regularly, within the constraints of the budget. In addition, the Street Department periodically plans and contracts for major street reconstruction projects. Due to the high cost of major reconstruction projects, it is necessary for the Street Department to plan such improvements well in advance, and generally in conjunction with obtaining outside funding for such projects. Street Sweeping The Street Department is also responsible for sweeping streets to remove debris of various types. The effort is made to sweep streets during non-winter months, with an anticipated minimum of sweeping each street at least once per quarter, within the constraints of the budget, personnel and equipment available. Snow Removal The Street Department provides snow removal services during winter months, using a system of thoroughfare priorities where the major thoroughfares are cleared first, and local streets cleared thereafter. Snow removal services include both plowing and salt distribution, and are covered by specific snow removal policies which are reviewed and managed by the Board of Works. The Street Department attempts to clear every street of any major snowfall, within the constraints of available budget, personnel and equipment. Annexation Fiscal Plan: Carreel, IN ]0 Street Lights Street lights are not offered as a municipal service, but it is necessary to address this service due to its specific inclusion in the statutory parameters. Under the Carmel-Clay development policies, street lighting and other public lighting is a development standard. As such, the developer of the site - whether it be a single building site, a commercial complex or a residential subdivision, is responsible for providing lighting which is appropriate to and necessary for the proposed development. In cases of commercial developments, the requisite lighting would be drastically different from lighting required for a residential development. Similarly, both developers and individuals have differing preferences with respect to public lighting, which is reflected in the development standards for any proposed development. Street lights have been made available on a limited basis in various locations within the municipal limits, generally in the older/historically developed areas, however, modern development policies and standards of the municipality require the developer to install lighting for all developments. Street lights are, therefore, not offered as a municipal service and are considered to be a development amenity (the developer is required to install and maintain street lighting suitable to the development). The municipality will, under certain circumstances, consider undertaking the cost of operating street lights which are located in the public fight of way as part of the municipal street lights system. The City will also consider the installation of street lights on a limited basis and in special situations through processes and policies of the Board of Public Works. Utility Service The subject of utility service is commonly misunderstood, due largely to individuals making invalid assumptions with regard to the nature and context of receiving such services. Therefore, the City of Carmel shall simply state the general policy, with additional detail provided below. That general policy is: The City of Carmel will provide access to sewer and water utility service for any proposed development, with the costs for connectincl to that utilitv service to be borne bv the develof3er/owner, in accordance with the poficies and fee structure of the Board of Pubtic Works. The development policies of the City of Carmel and the Carmet-Clay Plan Commission have required developers to install sewer and water utilities within their developments for the vast majority of developed sites in the Township for many years. In most cases, the developer installs such infrastructure and then add this cost to the price of the developed parcel, meaning that the cost of such infrastructure is paid by each individual property owner. However, in some cases, based upon the specific request of the developer/owner, the development was allowed to proceed without utility connections. Many of these decisions were based on the developer/owner being unwilling to bear the cost of the installation of said utilities. Let it be perfectly clear to all who investigate this issue that it is not the developmental intent of the citizens of the City of Carmel to provide a monetary windfall to individuals who initially refused to pay the cost of utility connection by causing the City of Carmel to provide such utility Annexation Fiscal Plan: Carmel, IN ]] services when their private well rims dry or their septic tanks malfunction. The City's policy for utility connection shall be that the developer/owner may choose not to connect the proposed development to the municipal utility systems, and thus avoid the immediate cost of said connection. However, when such connections are later required, for whatever reason, the system of fees and charges promulgated by the Board of Public Works shall apply to that utility connection. In this manner, the cost of installation of utility infrastructure is equitable to all property owners within the service area of the utility, whether the owner decides to connect to the utility systems when the development first occurs, or whether the owner decides to connect at some later date. Utility Connections as an Economic Incentive Let it be further understood, however, that the City of Carmel's annexation policies allow the issue of utility connection costs to be considered an "economic incentive." The annexation policies allow that economic incentives can be provided in exchange for consensus related to annexation, i.e. in exchange for non-remonstrance agreements or specific petitions to annex property. Under these general policy provisions, and in circumstances to be determined solely by the City of Carmel, the costs and fees associated with utility connections can be negotiated within practical limits as part of a package which includes annexation consensus. Municipal Water Utility The municipal water utility provides potable water service to properties within the service area of the water utility, inmany cases outside ofthe corporate limits ofthe municipality. The municipal water utility technically provides the service of pumping water from the water source, treating the water to some level, distributing the water into the system of municipal water lines, storing the water for peak demand and fire protection purposes, and maintenance of the system, in its entirety. This policy states that the water utility meets the parameters of providing access to water utility service to a property when a municipal water distribution line is within the distributive area of a main tnmk line or lateral line. When water lines are already developed with respect to a specific property, the water utility is made directly available to that property when a water line is located within 1 O0 lineal feet of the nearest property line of the parcel. In some cases, property owners have not connected their property to the municipal water system and use private water sources (primarily wells) instead. This election is made by the property owner in accordance with the development standards of the property at the time of the original development. The municipal water system also extends beyond the corporate limits of the municipality and service is provided to property in nnincorporated areas. The water utility is administered by a Utility Service Board which is responsible for recommending user charges to the legislative body of the municipality for implementation. The legislative body of the municipality may consider changes to the user charge system to reflect special situations, as well as changes in policy with regard to the type of customer and/or the location (inside or outside of the corporate limits of the municipality). The policy of providing municipal water service is not to be construed as being "free" in any Annexation Fiscal Plan: Carrnel, IN respect, and is certainly not covered by property taxes. The water utility is supported by a system of user charges which is administered by the Utility Board, in cooperation with the municipality. In addition, the development policies and standards of the municipality require the developer/owner to pay any capital costs associated with the extension of water distribution facilities into any proposed development. The only major capital expenditures covered by the water utility (outside of the service extensions afforded by the developers) is the capital cost of constructing and maintaining water pumping, treatment and storage facilities, which are paid either directly or indirectly through the utility's user charge system. The cost ofextending distribution lines is to be borne by the property owner/developer. Property tax revenues are not a part of the water utility budget. The water utility sets a system of user charges which are generally paid on a monthly basis. Those user charges cover both the capital and operating costs of the water utility. In addition to monthly service charges, the water utility may consider and/or establish a system of fees for other services such as various connection fees, and/or supplemental fees for special facilities installed to meet the needs/demandsofvariouscustomers. The water utility is also subject to some regulatory requirements which are administered at the state and/or federal level. As such, the system of fees and charges must be adjusted from time to time to remain current with regulatory and other requirements. Fire Hydrants The municipality pays a rental fee on fire hydrants which are necessary for mtmicipal fire protection services. These rental fees are generally supported by the user charge system of the water utility. As stated with regard to other services, the municipality may seek changes in the system of revenues used to pay for such services, however, at this time the policy of the City is that the developer of the site - without regard to the nature of the development - is responsible for installing the fire hydrants necessary to protect the proposed development from catastrophic fire. Municipal Wastewater Utility The municipal wastewater utility provides access to wastewater collection, treatment and disposal service to all properties within the corporate limits of the mtmicipality, as well as to other wastewater utilities which are serving the Carmel-Clay area. This policy states that the municipality meets the parameters of providing access to municipal wastewater service when the parcel is within the drainage watershed of a major intemeptor, trunk or lateral sewer. In cases where sewer laterals are made available to developed parcels, the standard for service is met when a municipal sewer is located within 100 lineal feet of the nearest property line of the parcel. In some cases, property owners have chosen not to connect their development to the municipal sewer system and use private wastewater disposal facilities (primarily septic tanks), instead. This decision is based purely upon the owner's election and the development standards of the original property development. As noted above, the general policy of the City is that the developer pays the cost of installing wastewater utility service in accordance with the schedule of Annexation Fiscal Plan: Carmel, IN ]3 fees and charges in effect at that time, and then adds that cost to the price of the developed parcel. In this manner, the property owner ultimately pays for the cost of the wastewater utility connection. In the case of developers/owners who elect not to pay the cost of wastewater utility connections for whatever reason, it is the policy of the city of Carmel to respect that decision. However, when those private wastewater facilities become dysfunctional, it is the policy of the City of Carmel to provide such wastewater utility connections at the capital expense of the owner, and in accordance with the schedule of fees and charges of the Board of Public Works at the time the work is undertaken. In this manner, the provision ofwastewater utility services is equitable to all property owners. The municipal wastewater system also extends beyond the corporate limits of the municipality and municipal wastewater service is provided to property in nnincorporated areas, as well as allowing other wastewater utilities to service properties within the corporate limits of the municipality. The wastewater utility is also administered by a utility service board which is responsible for developing and recommending a system of user charges to the legislative body of the municipality for implementation. These user charges must cover the cost of both capital and operations of the wastewater utility. The legislative body of the municipality may consider changes to the user charge system to reflect special situations, as well as changes in policy with regard to the type of customer and/or the location (inside or outside of the corporate limits of the municipality). The policy of providing municipal wastewater service is also not to be construed as being "free" in any respect, and the costs of such services are certainly not covered by property taxes. The wastewater utility is supported by a system of user charges which is administered by the Utility Board to cover both capital and operating expenses, in cooperation with the municipality. Property tax revenues are not a part of the wastewater utility budget. The development standards of the municipality are such that the capital cost of wastewater utility services is afforded by the developer as part of the development of the property (and that cost is ultimately passed on to property owners). In addition to monthly service charges, the wastewater utility has established a system of fees for other services such as various connection fees, and/or supplemental fees for special facilities installed to meet the needs/demands of various customers. Thecostof extending distribution lines is to be borne by the property owner/developer. The wastewater utility is also subject to regulatory requirements which are administered at the state and/or federal level. As such, the system of fees and charges must be adjusted from time to time to remain current with regulatory and other requirements. Drainage The municipality does not offer drainage services, except through development standards. In cases of new subdivisions, the development standards require the developer to provide on-site stormwater collection and retention for the subdivision/development in order to provide drainage services. In addition, county authorities are responsible for maintaining the county's system of Annexation Fiscal Plan: Carreel, IN drains and ditches (with such services being paid through specific levies by the county). In those portions of the municipality which were developed under historic development standards, there is a system of storm sewers which the municipality maintains, however, this storm sewer system was developed under the development parameters operative at the time of original construction and the storm sewer system is not extended into newer developments. Items Which Are NOT Municipal Services This section of the municipal services statement is offered for illustrative purposes only and is not to be considered a formal part of the description of municipal services. Instead, this section of the document is offered solely in an attempt to answer frequently asked questions in this regard. Sidewalks The municipality does not offer sidewalks as a municipal service. Sidewalks are a part of the development standards of the individual developments and are reviewed as part of the zoning and development process. Large-tract residential parcels generally are not required to install sidewalks, for example. The growth policy of the municipality is that sidewalks are offered as a development amenity and not a municipal service. Street Lights The municipality does not offer street lights as a municipal service. Street lighting is a development amenity which is considered part of the planning, zoning and development review process. Different types of development are required to install vastly different types of lighting, based on the land use and other parameters, and the municipality has no intentions of standardizing the lighting requirements of various forms of development as a result of growth and/or annexation. Curbs & Gutters The municipality also does not offer curbs and gutters or other roadway amenities as a municipal service. As above, these items are development amenities which vary on the basis of the development and are reviewed within the planning/zoning review process and negotiated with the developer. Other Items There are other items, including services and facilities, which fall into the classification of development standards as used herein. Generally speaking, the municipality acknowledges that various developments are undertaken to address various markets and the idiosyncracies of consumers within those markets. In order to address these idiosyncracies, the developer/owner offers differing amenides to attract customers/buyers. With that understanding, it is not the policy of the municipality to undertake the task of standardizing all of these development amenities as a result of annexation or municipal growth by allowing such services and/or facilities to be classified as "municipal services." Annexation Fiscal Plan: Carmel, IN ]5' Annexation Policies of the City of Carmel Preamble The research undertaken in the formal development of Annexation Policies for the City of Carmel has clearly demonstrated that the city has engaged in extensive efforts on multiple fronts to assure the controlled, methodical, organized growth of the city over the very long term. We are not currently aware of any city in Indiana which has invested such significant and prolonged effort in support of strong growth and development. In an effort to assure that municipal services were extended methodically, as early as 1959, the city began entering into specific joinder agreements with the township to provide uniform planning/zoning services, fire protection services and parks services which would be uniform throughout the incorporated and unincorporated portions of the township. Although growth in the unincorporated area has increased in recent years (coupled with a lack of formal annexation action by the city), the city has contributed generously to the extension of these services into the unincorporated township. These joinder efforts have been so successful in extending municipal services into the unincorporated areas that the residents may well be unaware of the fact that the city is responsible for originating most of those services. The City has invested and re-invested in comprehensive planning, zoning and development standards which control the development within both the incorporated and unincorporated areas of Clay Township. These planning efforts control the development of the tinincorporated areas in a manner that would have been impossible without the direct partnership of the city under the joinder agreement. In fact, when the planning/zoning joinder was developed, it appears that Hamilton County had no planning and zoning, at all, and the city of Carmel moved in full partnership with Clay Township to fill that void. As a result of this coordinated and cooperative planning effort, the development which has occurred in the unincorporated areas is of a quality which is virtually unequaled anywhere else in the state of Indiana. The City of Carmel has also invested extensively in utility service capacity, especially in sewer and water utilities. The Carmel sewage treatment facility is currently designed to handle 12 million gallons per day of wastewater, even though the citizens of the incorporated city use only a small portion of that capacity (currently about 3 million gallons). Since 100% of the land within the incorporated city of Carmel is already developed, it is irrefutable that the city has no need for additional sewage treatment capacity, therefore, the reserve capacity was constructed purely for the benefit of providing services to serve the growth of the community. The City of Carmel has also required that developers seeking development approvals provide the city with an agreement that the future property owners within their developments would support future annexation actions by the city. These "annexation agreements" are on file with the city, and clearly demonstrate the intent of both the city and the developer to annex these new developments as the city grew, and to make them a part of the incorporated city. Annexation Fiscal Plan: Carmel, IN ] 6 In addition to these factors, the City of Carmel, in cooperation with the City of Noblesville and the Towns of Westfield and Fishers have established boundary agreements which define the future corporate limits of each municipality. Under these agreements, the city of Carmel will extend no farther north than 146th Street, no farther east than the White River and no farther west or south than the county line. The establishment of these boundary limits demonstrates the extensive effort invested to promote controlled growth on the part of the City, and clearly establishes the intent of the city with respect to future growth and annexation. The combined impact of these actions is indisputable. The City of Carmel began as early as 1959 to plan for its future growth and to implement those plans with the intent of providing a high quality environment for its residents. From the beginning, the area considered for Carmel's growth was essentially co-terminate with the boundaries of Clay Township. Those plans were initiated under a set of annexation and growth statutes which have since been changed, however, those statutory changes do not alter the original and continuous intent of the city of Carmel with respect to defining and implementing a bright future for its citizens by providing uniform municipal services throughout the township. Therefore, this preamble stands as a means of summarizing the evidentiary nature of these previous actions. Fiscal Poficy of the City It is appropriate to state categorically that the annexation policies of the city are expected to correspond with the fiscal policies of the city. In the vernacular, "no free lunch." Therefore, it is the policy of the City of Carmel that annexation should only be undertaken under circumstances which are not adverse to the fiscal interests of the current residents and taxpayers of the city of Carmel. Preference Toward Friendly Annexations The City of Carmel would prefer to implement annexation action under the most amenable conditions possible. Therefore, in cases where it is practical/possible to achieve consensus in favor of annexation, the city would expect to demonstrate a preference toward such consensus in those cases where an annexation action can be implemented under the "voluntary" provisions of the statute (IC36-4-3-5). City Services vs. Development Standards In any annexation action, the City of Carmel will extend all municipal services to the annexed area, in accordance with the requirements of state law. However, the City hereby sets forth a clear and specific distinction between "municipal services" and "development standards." For purposes of annexation "development standards" are specifically identified as those improvements which are required as a result of the requirements of the subdivision regulations and/or the zoning ordinance as administered by the Department of Community Services (funded through the joinder agreement). As such, the improvements which would be considered to fall under the "development standards" of the city, and not under the "municipal services" of the city would include, but not be limited to, such things as sidewalks, curbs/gutters, development greenspace, surface water management/retention, walking/hiking trails, street lighting, and other Annexation Fiscal Plan: Carmel, IN ./7 similar improvements which are required as part of the development. Conversely, "municipal services" shall include the services directly offered by city departments such as street maintenance/repair, police protection, fire protection, sewer service, water service, city court, city administration, and street snow removal. City Boundaries To Approximately Coincide with Township Boundaries The original and current intent of the cumulative actions of the City and Township with regard to growth is that the ultimate boundaries of the City could coincide with the boundaries of Clay Township. It is possible that certain areas cannot be effectively served by the city for some specific reason. Therefore, it is the official policy of the City that the continuous and ongoing effort of the city to plan for its municipal growth and to implement those plans through the extension of services through various means - exhibited most distinctly through the joinder agreements and the cooperative extension of sewer service (including sewage treatment capacity) that the City's long term goal is potentially to incorporate any areas within Clay Township. Annexation Agreements The City has relied heavily on "armexation agreements" with developers wherein the City intended to take formal annexation actions at a future date, after the development became contiguous to the city. The annexation agreements demonstrate the "policy intent" of the City with regard to annexation, however, the City is cognizant of the importance of community consensus as a building block of good government. The city will adjust its policies and practices with regard to annexation agreements to make them more practical and informative for the residents of these new areas in the future. It is the city's long term intent, however, to continue to require new development in the unincorporated areas to waive the right to remonstrate against future annexation actions, with specific requirements related to connection to utility systems. In support of this policy, the City will consider the use of agreements developed under IC36-4-3-8, IC36-4-3-8.5 or IC36-4-3-21, as well as agreements under utility service sections of the statute as a means of providing for smooth assimilation of the territory into the city' s corporate limits. This portion of the Annexation policies therefore underscores and amplifies the provisions of the "Voluntary Annexation" portion of the policies. Utility SeNice (Sewer & Water) The City of Carmel defines 'utility service' and 'utility systems' to include both the distribution/collection system as well as the capacity to treat and operate the utility systems. Water lines are useless without water supply and storage which generates water pressure. Sewers are useless without the capacity to treat the wastewater and a permit to discharge treated wastes to the surface waters of the state of Indiana. People are often confused about "sewer service" because of the entity that owns the collection/distribution system or the entity which sends them a bill for service. This policy is therefore based on the holistic issue of utility service. Any property receiving utility service, as defined herein, will be considered eligible for annexation. In cases where a developed property connects to the 'utility systems' of the city, as defined Annexation Fiscal Plan: Carreel, IN above, that property becomes immediately subject to annexation by the city, as a condition of receipt of sewer service. If said property cannot be con figured in a manner that meets the annexation parameters of state law, then the city will consider developing an annexation agreement or a special contract under IC36-4-3-8 or 21 or such other provisions as might be appropriate to the situation in question. Financial "Incentives" in Support of Annexation Aside from the issue of municipal services, the city has developed annexation/growth policies with support for the concept of applying economic incentives to the annexation policies as a basis for building public support and popular consensus. The financial incentives possibly considered by the City of Carmel include tax abatement (IC36-4-3-8.5), delay of the effective date of the annexation (IC36-4-3-8), negotiation of supplemental services (based on surplus tax revenues), elimination of utility/service surcharges, and other appropriate arrangements as provided by IC36-4-3-21. It is the fundamental position of the city, however, that the extension of such financial incentives shall be made primarily in those cases (involving those territories) where the extension of such financial incentives is appropriate to the fiscal and governmental interests of the city of Carmel. This portion of the Annexation Policies is intended to underscore the provisions regarding the fiscal interests of the city, as well as the provisions regarding friendly annexation. In those cases where financial incentives are requested, it is an expectation of the city that the residents/owners within the annexation territory would provide an environment for annexation which would not exert a fiscal burden on the residents/owners within the current city limits. In the converse premise, it is inappropriate to extend incentives in those cases where amenable consensus cannot be demonstrated by the owners within the territory. Annexation of New/Proposed Development The statute clearly anticipates the annexation of new development by a city. Carmel's previous policies attempted to capitalize on the convenience of that form of annexation by using armexation (non-remonstrance) agreements. The simple fact is that it is much simpler to annex an area while it is under the control of the developer, and before its ownership is scattered to the individual parcels. If a buyer of lots within the development buys a parcel with the full knowledge of it being within the corporate limits, the amount of confusion regarding municipal services and property tax rates is greatly reduced. Therefore, the Annexation Policies of the City make the annexation of new development the cornerstone of its annexation policies. Annexation of Existing/Occupied Development Once a residential development (which is the dominant form of development in Clay Township) is marketed and occupied, the prospect for annexation becomes much less clear. The annexation of existing development, therefore, deserves separate consideration, with accommodation of the reality of its occupancy. It is expected that the annexation of existing residential development will require special provisions with regard to public information as a means of developing an appropriate level of public consensus in support of the City. Annexation Fiscal Plan: Carmel, IN It is therefore the policy of the City of Carmel that the city will extend a good faith effort in informing the property owners within a proposed annexation territory of the intent to annex the area and the possible consequences thereto. The city will share the draft Fiscal Plan developed in accordance with the provisions of the statute through public presentations of the information contained therein, as well as fact sheets summarizing major issues regarding the annexation. In addition, black and white copies of the Fiscal Plan can be made available for purchase, with cost dependant upon the size/cost of the document. Annexation of Commemial/Industrial Development The statute makes special accommodation of commercial/industrial development under IC36-4- 3-13. Since commemial/industrial areas are limited due to Carmel's land use patterns, all industrial and commercial areas are to be considered for immediate annexation action. Annexing Territory 100% Contiguous with the City As Carmel has developed, there have been areas left outside of its corporate limits which are approaching 100% contiguity (i.e. completely surrounded by the city). A recent map of the incorporated city shows several such areas east of Spring Mill Road. It is, therefore, the policy of the city that such areas be considered for annexation at the earliest practical time, with appropriate consideration of the cost of services to each specific area. Annexation of Indebtedness In any annexation action, the City of Carreel will comply with all statutory requirements regarding the absorption of debt incurred by the unincorporated township for the purpose of providing municipal services to the annexation territory. /crux morganhart fp Annexation Fiscal Plan: Carmel, IN 20