HomeMy WebLinkAboutCC-04-15-02-04 Fiscal Pln/C210 SPONSORED BY:
COUNCILORS WILSON, SNYDER
AND KOVEN
RESOLUTION NO. CC-04-15-02-04
A RESOLUTION OF THE COMMON COUNCIL OF THE CITY OF
CARMEL, INDIANA, ADOPTING A FISCAL PLAN FOR THE
ANNEXATION OF PROPERTY CONTIGUOUS TO THE CITY
OF CARMEL, INDIANA
WHEREAS, well defined long term planning benefits the City of Carmel ("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 Carmel (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 approximately2Z~ 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
WHEREAS, the Council is desirous of adopting a written fiscal plan for the Annexation
Territory;
NOW, THEREFORE, BE IT RESOLVED by the Common Council of the City of
Carmel of Carmel, 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-210.
Section Four:
The City will provide a copy of the Plan immediately after adoption to any
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.
PASSED by the Common Council of the City of Carmel, Indiana this IU~day of
_,/~ tq3xl [ k , 2002, by a vote of~_ ayes and ~ nays.
COMMON COUNCIL FOR THE CITY OF CARMEL
/l~siding Officer/,-~
Wayne Wilson, President Pro Tempore
Robert Battreall ~-~
/R~nald E. C~-ter
ATTEST:
2
Presented by me to the Mayor of the City
~ , 2002, at ~".m. °f Carmel' Indiana' the ~-day°f
Diana L. Cordray, £
App, rgved by me, the Mayor )of the City of Carmel, Indiana this // day of
/q]~/4 / / ,2002, at ,~}~_.m.
J~t{~s Brainard, Mayor
ATTEST:
Diana L. Cordray,
Prepared By:
Sue A. Beesley
Bingham McHale LLP
1100 Chamber of Commerce Bldg.
320 N. Meridian Street
Indianapolis, Indiana 46204
3
EXHIBIT A
4
EXHIBIT B
LEGAL DESCRIPTION
Beginning at the point of intersection of the south right of way line of 136th Street and the corporate limits of the city
of Carmel (located approximately at the northeast comer of parcel 17-09-26-00-06-007.000),
then proceeding westward, along the corporate boundary of the City of Carmel (at 136th Street) to the point of
intersection with the western boundary of parcel 17-09-27-00-00-013.002 at approximately the northwest comer of
said parcel),
then proceeding southward, along the corporate boundary of the City of Carmel (which coincides with the eastern,
southern and western boundaries of parcel 17-09-27-00-00-013.002) to the northwest comer of said parcel,
then proceeding westward, along the corporate boundary of the city of Carmel, to the northwest comer of parcel 17-
09-27-02-01-036.000, coinciding with the corporate limits of the City of Carmel and the southern right of way of
136th Street,
then continuing westward, along the southern right of way line of 136tt, Street to a point directly south of the
southwest comer of parcel 17-09-21-00-04-011.000,
then proceeding northward, to the southwest comer of parcel 17-09-27-00-04-011.000, and continuing northward,
along the western property boundaries ofparcels, as follows:
17-09-21-00-04-010.000
17-0%21-00-04-009.000.
17-09-21-00-04-008.000
17-09-21-00-04-007.000
17-09-21-00-04-006.000
17-09-21-00-04-005.000
17-09-21-00-04-004.000
17-09-21-00-04 -003.000
17-09-21-00-04-002.000
17-09-21-00-04-001.000
17-09-21-00-03-020.000
17-09-21-00-03-021.000
17-09-21-00-03-022.000 and
17-09-21-00-06-036.000
to the point of intersection with the southern right of way line of 141 st Street,
then proceeding westward, along the southern right of way line of 141~ Street, to the point of intersection with the
western right of way line of Towne Road,
then proceeding northward, along the western right of way line of Towne Road to a point directly west of the
northwest comer of parcel 17-09-21-00-00-001.001 (thereby including the Maebeck Commons Subdivision), then
proceeding eastward to the northwest comer of parcel 17-09-21-00-00-001.001, and continuing eastward to the
northeast comer of said parcel, then proceeding southward, along the eastern boundary of said parcel, to the point of
intersection with the northern boundary of parcel 17-09-21~00-00-002.000 (at approximately the northwest comer of
parcel 17-09-21-00-00-002.000),
then proceeding eastward, along the northern boundary of parcel 17-09-21-00-00-002.000, to the point of internal
northwest comer of parcel 17-09-21-00-11-033.000 (in the western portion of the Saddle Creek Subdivision),
then proceeding northward, along the western boundaries of parcels, as follows:
17-09-21-00-11-033.000
17-09-21-00-11-032.000
17-09-21-00-09-018.000
17-09-21-00-11-017.000
17-09-21-00-11-016.000
17-09-21-00-11-015.000
17-09-21-00-08-052.000
17-09-21-00-02-005.000
17-09-21-00-02-004.000
17-09-21-00-02-003.000
17-09-21-00-02-002.000
17-09-21-00-02-001.000
(in the Saddle Creek Subdivision and the Autumn Wood Farms Subdivision), to the point of intersection with the
south right of way line of 146t~ Street (which is under the jurisdiction of Hamilton County by virtue of a formal
purchase agreement from the City of Carmel),
then proceeding eastward, along the southern right of way line of 146t~ Street to the point of intersection with the
corporate limits of the city of Carmel (located at approximately the northeast comer of parcel 17-09-24-00-00-
008.000, (adjacent to the far northwest comer of the Cedar Lakes Subdivision, which adjoins the northeastern comer
of the Hunters Creek Subdivision),
then proceeding southward, westward, southward, westward, southward and eastward, along the corporate boundary
of the city of Carmel, (including the Hunters Creek Village, Rohrer Woods, Hunters Knoll, and Hunters Creek South
Subdivisions in the annexation territory) to the point of intersection with the western right of way line of Rohrer
Road,
then continuing along the corporate boundary of the City of Carmel eastward, across the right of way of Rohrer
Road, and continuing eastward along said corporate boundary to the point of intersection with the right of way of the
Old Monon Railroad,
then continuing eastward across the right of way of the Old Monon Railroad, then southeastward, and westward,
along the corporate boundary of the City of Carmel to the point of intersection with the right of way of Rohrer Road,
then proceeding southward along the right of way of Rohrer Road, which coincides with the corporate boundary of
the City of Carmel, to the northwest comer of parcel 17-09-24-04-09-001.000,
then proceeding eastward, along the corporate boundary of the city of Carmel to the point of intersection with the
western right of way line of US Highway 31,
then proceeding northeastward, along corporate boundary of the City of Carmel, past the centerline of the Old
Monon Railroad, and turning southeastward, along the corporate boundary of the City of Carmel (which coincides
with the Old Monon right of way), to the point of intersection with the northern right of way line of 136® Street
(also coinciding with the corporate limits of the City of Carmel),
then proceeding westward and southwestward, along the corporate limits of the City of
Carmel (following the right of way of 136th Street), to the point of intersection with the western right of way line of
Old Meridian Street (which coincides with the corporate limits of the City of Carmel),
then proceeding southwestward, along the corporate limits of the City of Carmel (along the right of way of Old
Meridian Street), to the southeast comer of parcel 17-09-26-04-01-028.000,
then proceeding westward, along the corporate boundary of the City of Carmel, to the point of intersection with the
western boundary of parcel 17-09-26-04-01-028.000,
6
then proceeding northward, along the corporate boundary of the City of Carmel (and along the western boundary of
parcels 09-26-04-01-028.000 and 17-09-26-04-01-009.000), to the point of intersection with the southern boundaries
of parcels, as follows:
17-09-26-04-01-007.000,
17-09-26-04-01-006.000,
17-09-26-04-01-005.000, and
1%09-26-04-01-004.000
to the southeast corner of parcel 1%09-26-04-01-004.000,
then proceeding northward, along the corporate boundary of the city of Carmel (which coincides with the western
boundary of parcel 17-09-26-04-01-004.000 to the point of intersection with the right of way of 131st Street (which
coincides with the corporate limits of the City of Carmel),
then continuing generally westward, along the corporate limits of the City of Carmel to the point of intersection with
the right of way of Pennsylvania Street,
then proceeding northward, along the corporate boundary of the City of Carmel (which generally coincides with the
Pennsylvania Street right of way), past the point of intersection with the northern right of way line US Highway 31,
to the point of beginning,
and including all otherwise un-annexed right of way located adjacent to the annexation territory, in accordance with
IC36-4-3-2.
7
EXHIBIT C
276942
8
City_ of Carmel
Hamilton County, Indiana
Annexation
Fiscal Plan:
C-2 0 Annexation Area
Draft Report
This Fiscal Plan may be inspected at the Department of Community
Services,-located on the 3rd floor of City Hall, Carmel, 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, Deparhnent of Community Services, City
of Carmel (317-571-2417).
April 7, 2002
Michael R. Shaver, President
4742 Bluffwood North Drive
Indianapolis, IN 46228
(voice) 317/299-9529
(fax) 317/329-9885
(e-mail) wabsci~aol.com
Description of Annexation Impact
Background
Carmel has long anticipated and prepared for the annexation of the unincorporated areas of
western Clay Township, including the area identified in Ordinance C-210. The City of Carmel
and Clay Township governments have established a precedent of cooperation by offering
"joinder services" which enabled the unincorporated areas to enjoy many of the same municipal
services that the residents of the City of Carmel receive. Not only are those municipal services
offered in the unincorporated area, but they are provided at a cost which is only possible if the
City is willing to extend the substantial savings associated with the economies of scale enjoyed
by the incorporated city. There is no other area in Indiana where the concept ofjoinder services
has been so creatively implemented to assure smooth, controlled and orderly growth in
development. The long term plan is, was and has been, to provide municipal services through
the joinder agreements until such time as there was sufficient development to justify annexation.
In fact, the official "Annexation Policies" of the City of Carmel, as passed by the City Council,
state that the long-term furore of the City is to incorporate the entirety of Clay Township. That
time has come, and C-210 is the first major incremental step toward that long-term goal.
Summary of Municipal Service Impact
The narrative below describes the projected impact on municipal services related to annexation
ordinance C-210. The City Council's Annexation & Land Use Committee (ALUC) has held a
series of public information meetings in which the bulk of the information contained in this
Fiscal Plan was presented informally and comments were received from local citizens. The
ALUC sent specific invitations to the various homeowners associations to attend these public
information meetings in order to assure fair and open communication prior to passage of C-210.
"JOINDER" SERVICES" ALREADY PROVIDED
In preparation for the smooth incorporation of the unincorporated areas of Clay Township, the
City of Cannel has provided joinder services for fire protection, planning/zoning (through the
Carmel Department of Community Services), communications center, and parks. The municipal
services which are provided by joinder will remain essentially the same, with the technical
change that the property tax portion of the payment for these joinder services will be changed
from the township to the City, resulting in essentially no net change to the taxpayer.
SEWER UTILITY SERVICES
Sewer utility services demonstrate another conceptual form of"joinder" in that the City of
Carmel provides sewage treatment, while the Clay Regional Waste District has constructed the
major interceptor sewers to serve new development in the unincorporated western township.
(Note, however, that private developers install the local collector sewers as part oft_heir
development cost and pay access/capacity fees for the interceptor and treatment plant costs.)
Sewer utility services which are within the sewer service area of the City of Carmel will be
extended to any property desiring sewer services, and charges for the capital and non-capital cost
Draft C-210 Annexation Fiscal Plan: Carmel, IN 2
of extending these sewer services will be paid by the property owner in accordance with the
approved schedule of rates and charges of the sewer utility, and in accordance with approved
annexation policies of the City.
It is noted that the old Hamilton Westem Sewer Utility area (which constitutes a substantial
portion of the C-210 area) will enjoy a substantial reduction in sewer service rates as a result of
annexation. This reduction could approximate $16-$17 per month, which would represent a
substantial portion of the proportionate increase in property taxes due to annexation.
WArEa UtILItY SERVICES BY rile Clr¥
Water utility service is provided through a network of different providers, which the city of
Carmel is taking significant steps to integrate. Within the last 12 months, the City has moved to
purchase the water lines from Hamilton Western Utilities (which serves a significant portion of
the C-210 area), and to purchase the water lines from the Indianapolis Water Company (a.k.a.
"IWC"), as part of the divestiture oflWC from NiSource to the City of Indianapolis. Both of
these water utility purchases will give the City of Carmel an extensive water infrastructure
network outside of its corporate boundaries, which is entirely consistent with the overall, long-
term goal of incorporating the entire township. These investments in water utility service in the
unincorporated township are significant, and they are perfect examples of actions which are only
possible because of the buying power of the City of Carmel (the Township could never have
accomplished this without the city). It is appropriate to note that Hamilton Western Utilities had
previously announced that it was applying for a 50% increase in water rates prior to the purchase
by the City of Carmel, as further evidence of the benefit of integration into the City of Cannel.
In addition to these capital investments, it is noted that the City of Cannel provides softened
water from underground sources, which is far less subject to variations in taste, color and other
impurities than the water provided from many other sources. This is considered a major
improvement to the water service currently provided by IWC. In recent years, IWC water drawn
from Eagle Creek reservoir has been susceptible to major problems with algae which drastically
affected the taste and usability of IWC water, to the point that many IWC customers were buying
bottled water for cooking and drinking. By contrast, Carmel water is softened to 5 grains of
hardness, while IWC water is not softened and often has more than 400% more hardness than
Carmel city water. Also as a part of the long-term water service plan, the City plans to construct
a new, 2 million gallon, water storage facility to serve the Hamilton Western service area, which
approximately coincides with the C-210 area. This major capital expense is not undertaken as a
part of the annexation effort, but rather is undertaken as part of the long-term plan to standardize
service throughout Clay Township.
It is also appropriate to note that Cannel City Water crews inspect and test the operability of fire
hydrants at least once per year, along with flushing the hydrants approximately twice per year.
These maintenance activities assure proper performance of the hydrant system with respect to fire
protection in the C-210 area.
Draft C-210 Annexation Fiscal Plan: CarmeI,JN 3
The above explanation of municipal services clearly sets forth that the City of Carmel has long
anticipated the incorporation of the entire township, and has made concrete, significant,
undeniable capital investments to provide a smooth transition from unincorporated area to
incorporated area. The combined effect of the joinder agreements, the cooperative approach to
sewers and sewage treatment (between the city and the township), the integrated comprehensive
planning efforts of the city and township, and the capital investment in water utility facilities
serving the unincorporated township creates a clear and unique picture of a city which has
planned for - and invested - in its future growth. Ordinance C-210 is the first major step toward
that long-term goal.
HOUSEHOLD HAZARDOUS WASTE DISPOSAL SERVICES
Upon annexation, the residents &the C-210 area will be eligible to participate in the City's
household hazardous waste disposal programs. Unincorporated areas are currently supposed to
go to Noblesville for this service, which is run by the utilities department.
NEW MUNICIPAL SER VICES RESUL TING FROM/INNEXA TI ON
The transition from unincorporated area to the municipal corporation will bring the municipal
services of the Administration, Streets and Police departments to the C-210 annexation territory.
Annexation ordinance C-210 will result in the provision of City Administration services to the
territory. These administrative services include the services of the office of Mayor, City Council
and all municipal staff. Clearly, such "soft" services as city administration is a fungible concept.
Prior to annexation, it was common for regidents of the C-210 area to call City Hall with
question, complaints and problems, despite that they paid no property taxes or other revenue for
such services. In most cases, these people often received a respectful response to their inquiry, as
well, including such recent examples of C-210 residents protesting proposed re-zoning of certain
C-210 territory. Therefore, the primary city administration benefit to the residents of C-210 will
be the oppommity to participate in municipal elections.
Ordinance C-210 will also provide the territory with police protection services by the Carmel
Police Department. Once again, such services are somewhat fungible, due to the fact the mutual
aid responses have often resulted in police calls being answered by Carmel Police. In addition,
cooperation between law enforcement agencies often means that the facilities of the Carmel
Police Department are used by other agencies in solving crimes in the area. Due to ambiguities
related to the City Police being supported entirely from city revenues, yet City Police resources
often being made available to other agencies, this service is often misunderstood. Residents of
the unincorporated area do not feel compelled to pay for services if they can obtain the same
services without paying. While these ambiguities and inconsistencies are unfortunate, they are
nonetheless real, however, these inconsistencies do not reduce the legitimacy of the assertion that
annexation will afford the residents of the annexation area with the municipal services of the
Carmel Police Department. The cost of these services is relatively high due to the high
manpower/personnel and equipment cost associated with law enforcement, and would constitute
a large portion of the increase in property taxes to be paid by residents of the C-210 area.
Draft C-210 Annexation Fiscal Plan: Carmel, IN 4
After annexation, the C-210 area will also receive the services of the Carmel Street Department.
These municipal services are also expensive in terms of both capital and non-capital costs.
Included in the street department services are such things as snow removal, capital and non-
capital street repair & reconstruction, street emergency services (such as light malfunctions, etc.),
street sign maintenance and replacement, and certain right of way maintenance tasks. Sidewalks
and street lights are not municipal services of the city of Carmel and are considered to be
development standards which vary between developments. In addition, the Street Department is
responsible for maintaining the connections between drainage facilities (while the individual
stormwater drainage/retention facilities are the responsibility of the homeowners' associations) to
assure that these facilities function properly and do not cause flooding through malfunction.
It is important to note that the annexation area does not include 146th Street, because the right of
way for 146th Street was specifically deeded to the County, which owns the roadway. The 146th
Street facility forms the boundary between Carmel and Westfield, which is maintained as a
county highway. Therefore, the City will not be responsible for any maintenance or other activity
on 146th Street.
The Street Department has calculated that the C-210 annexation will add 38.1 miles of new
roadway to the City, which currently has about 205 miles of existing roadway (thereby generating
an 18.5% increase in the overall responsibilities of the Street Department). All of the C-210
streets will be entered into the city street network and placed on a priority list for re-paving,
based on current age & condition. Some of the older neighborhoods (such as Mt. Carmel) could
see their streets re-paved within the next 2-5 years, due to current condition, however, newer
neighborhoods will be lower in priority.
Based on current operating parameters of the Carmel Street Department, new streets generally
remain in good condition for 10-15 years, however, after that initial period, the streets require re-
paving every 10-12 years, based on current experience. Some of these areas have streets that are
far older than 10-15 years, yet the county has never re-paved these streets, thus creating a specific
benefit due to 'annexation. The street evaluation process is renewed annually to accommodate
changes in street condition.
Finally, with regard to Street Department services, the Street Department maintains a weekend
crew which goes around the incorporated area and removes inappropriate signs which often litter
the right of way. This is a minor service, but one that reduces the clutter of major roadways.
ANrlCIPA TED ROADWA Y IMPROVEMENT PROJECTS
The City intends to pursue a number of roadway improvement projects after the C-210
annexation is complete. It is well known that the City of Carmel has engaged in long term
comprehensive planning for the entirety of Clay Township, including thoroughfare planning.
The C-210 annexation is the first of an anticipated series of major annexations which will enable
the City to begin implementation of the long-term thoroughfare plans for the township. This
reality represents yet another aspect of the long-term goal of incorporating the entire township
Draft C-210 Annexation Fiscal Plan: Carmel, IN 5
because these roadway improvement projects are far less likely to ever happen unless/until the
township is annexed into the City. The City is, therefore, prepared to pursue these projects as
appropriate after the C-210 annexation becomes effective.
Short Term Street Improvements (Proposed for Implementation but not as a Part of Annexation):
1. Intersection improvements at 131st & 136th & Spring Mill are short term. These intersection
improvements will have an immediate positive impact on traffic flows in and directly related to
the C-210 annexation. Although the 131,t Street intersection is south of the C-210 area,
development in and around C-210 directly affects traffic at the 131st Street intersection. The
estimated cost of these improvements is $600,000-$1 million, however, the planning and design
are not yet complete, so final costs are not yet available.
Signalization of 136th & Oak Ridge, along with widening and improvement to Oak Ridge, south
from 146t~. These improvements directly affect the traffic flows in the C-210 area, and are
intended to help rectify longer-term problems which have been known, but not addressed, for
some time. This project is another example of the capacity of the City to implement projects
which are unlikely to happen if the area remains unincorporated. The preliminary estimate of the
cost of this project is $500,000 to $800,000.
Extension of Meridian Comers Boulevard to 136~h Street. This project will be pursued in the very
near future, with possible commencement of construction using TIF financing which could take
place as early as 4th quarter, 2002. The estimated cost of the entire roadway could approach
$1.5 million or more when fully completed. At this time the Carmel Redevelopment Commission
(CRC) has taken initial action to pass the declaratory resolution for that portion of the area which
is within the corporate boundaries of the city, however, the City has ne authority to designate an
Economic Development Area outside of its corporate boundaries, therefore the C-210
annexation is important to this short-term project. This roadway segment is anticipated to
ultimately become part of the Illinois Street corridor which is being planned to relieve local traffic
congestion along the Meridian Street corridor, and represents yet another example of the
capacity of the City to perform projects which would otherwise have been impractical or
impossible.
Intermediate Term Street Improvement Projects:
In the intermediate term, the City will begin implementing those portions of the Thoroughfare
Plan which relate to the most immediate annexation actions (mostly in the northern areas of the
township). Please recall that the citizens of the unincorporated township have participated in
every planning activity of the city, regardless of its jurisdiction, however the Township does not
participate in the implementation of any provision of that plan.
Long Term Thoroughfare Widening Projects:
The Carmel Thoroughfare Plan calls for the widening of Spring Mill Road (estimated cost $5-$7
million). In addition, the project to widen of Smokey Row Road (136~ Street) with intersection
improvements will be added to the implementation program for the Thoroughfare Plan, with
DOCS working on the development of a financing program for this major project.
Cumulative Impact Fees
The City of Carmel has implemented a system of impact fees to help pay for financing long-term
thoroughfare improvements in the unincorporated area as part of the long-term program to
integrate the entire township into the municipality. Most of the existing developments in C-210
have already been assessed these impact fees, which are being accumulated by the City, and
new/proposed developments will add new revenues to this system for the purpose of providing a
Draft C-210 Annexation Fiscal Plan: Carmel, IN ~'
portion of the capital cost of future major thoroughfare improvements. Unfortunately,
developments in Westfield do not contribute funds for the improvements of major north/south
thoroughfares (which serve the Westfield area but which are located in Carmel/Clay Township),
therefore, Carmel has ended up with additional financial responsibility for future development of
these thoroughfares to handle future traffic flows. The presence of this system of impact fees
and the accumulation of funds for future capital improvements rapresent yet another example of
the long-term planning which has been invested by the city of Carmel to assure that future
growth is controlled and effective.
DRAINAGE FACILITIES & SERVICES
The city does not offer drainage services, except in the narrowly-defined context presented
above. Drainage issues are handled as a development standard and enforced through the
planning/zoning process. On a county-wide basis, the County Drainage Board retains all
responsibility for drainage improvements, and along with that responsibility the Drainage Board
has the ability to levy special assessments on adjoining landowners to repay the cost of drainage
improvements.
Fiscal Impact of the C-210 Annexation
The proposed C-210 annexation will generate a fiscal impact on the city and on the residents of
the area. The table below provides a simplified method of estimating the fiscal impact of C-210.
It should be noted that the entirety of any and all fiscal impacts to any municipality are absorbed
by the annual budget process. During the budget process, city officials consider a myriad of
issues and attempt to accommodate each issue in the most appropriate matter. Annexation issues
are simply a small portion of the issues considered in creating the budget, therefore, it is difficult
to separate the fiscal relationships of annexation. This estimation process is made more
complicated when the city is undertaking multiple annexations simultaneously (Carmel currently
has approximately 6 active annexation ordinances, with another 28 annexation areas in the final
stages of planning). For these reasons, the estimation method below seeks to simplify the matter
sufficiently that the lay public can understand the impact of annexation on the area, as well as on
them, personally.
Projected Impact of Annexation
(Based on actual city budget expenditures)
Department %
Mayor's Office 1.01%
Fiscal (Clerk-Treasurer) 1.25%
Legislative/City Council 10.64%
Judicial 1.00%
Law 0.79%
Plan Commission 0.69%
Administration 2.59%
total administrative "overhead" ~17.37%
Draft C-210 Annexation Fiscal Plan: Carmel, IN 7
Police 29.06%
Street Department: Board of Works 16.48%
Joinder Services
Communications Center 3.72%
Fire 30.69%
Commun~b/Services 2.68%
Total of Joinder Services 37.09%
Total Budget (1.70) 100.00%
Annexed Population 7500
2000 City Population 38000
impact on population (increase) 19.74%
annexed miles of roadway 38.1
Miles of existing streets 209.0
Impact on street department 18.23%
Annexed NAV $180,000,000
Existing City NAV $2,326,000,000
Impact on NAV 7.74% Budget Restoration
Administration Budget (overhead) 17.37% $304,484
Impact on Police Department 7.74% $750,645
Impact on Street Department 18.23% $1,002,632
Subtotal of Non-Administrative Departmental Costs $I ,753,276
Estimated Fiscal Impact of Annexation, Inc. overhead $2,057,760
Estimated Property Tax Revenue $1,015,560
Estimated COlT Revenue Shift (Township to City) $934,315
Estimated increase in other revenues $110,000
Est. Total COIT/Preperty Tax Revenue Shift $2,059,875
The column marked "%" represents the approximate proportion of the total budget allocated to
each department. These values fluctuate from year to year within a relatively narrow range,
depending upon special needs and situations faced during the year, however, the proportions are
believed valid for fiscal estimation purposes. 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 mx and COIT portions of the total revenue stream, which compose the
bulk of all city revenues. However, please note that property taxes represent the only revenue
stream which is totally controlled by the municipality. Supplemental fiscal information will be
provided to clarify issues introduced during the annexation process.
Draft C-210 Annexation Fiscal Plan: Carmel, iN 8
Annexed NA V
The proportionate increase in NAV resulting from the proposed annexation will generate a
projected impact on the services of the city administration, police depatanent, and street
department, as well as other depatlsnents 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 C-210
annexation area is over $180,000,000 in true tax value (over $60,000,000 in net assessed value
under the old system) which represents an increase of approximately 8.45% in the overall True
Tax Value (TTV) of the city.
It is also appropriate to note that the TTV for the area continues to grow, especially with the
addition of new developments, such as Westchase, Cheswick, Buckhorn and others. As such,
this continuation in development will add TTV to the C-210 area and to the city of Carmel,
which will increase property tax and COIT revenues to the city and county, The growth in these
revenues will provide additional funding for major improvements, as well as offering the
potential for property tax rate reductions.
Annexed Streets & Roads
The C-210 annexation area is estimated to add 38.1 miles of streets and roads to the municipal
thoroughfare system. The City of Cannel has approximately 209 miles of local streets and roads
(adjusted for annexations in process), therefore, the projected fiscal impact of the proposed C-
210 annexation on the Street Department is estimated to be about 18% (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.
Annexed Population
The population of the C-210 area is changing constantly as new homes are built and occupied.
However, the overall change in the municipal population is dependent upon whether those new
homes are occupied by people who previously lived elsewhere in Carmel. The estimated current
population of the C-210 area is approximately 7,500, which represents a 19.7% increase over the
1999-2000 population of the city.
Fiscal Impact of Joinder Services
The overall property tax rates of Clay Township and the City of Carmel are presented in the
table, below. It is easy to see that the disparity between the unincorporated property tax rate and
the city tax rate is only $0.38/$100 (or, 0.0038% of TTV). Historically, 93% - 96% of the
Township's tax rate was used to pay for joinder services. For 2002, the Clay Township portion
of the tax rate was $0.2001/$100, with $0.1866/$100 going toward joinder services (93.6% of the
total). For the property within C-210, it is projected that this $0.1866/$100 portion of the
township tax rate will drop off of their property tax bill, and $0.5642 will be added back on by
the city. The net increase would be a maximum of 17%, based on 2002 published tax rates.
Draft C-210 Annexation Fiscal Plan: Carmel, IN 9
Fiscal/mpact on COlT & Other Revenues
When C-210 is implemented, the Township will relinquish a portion of its COIT revenues (due
to the reduction in the township budget related to joinder services within the C-210 area). In
addition, the city will receive additional funding fi.om the state and other sources such as alcohol
gallonage, cigarette, and gasoline taxes. Historically, the COIT revenues of the city have grown
faster than any other revenue, due in large part to the fact that incorporated and unincorporated
Clay Township contributes about 50% of the total COIT receipts of the entire county. Projected
growth in COIT revenues can be used for special projects, as well as reducing the overall
property tax rate of the city. This fiscal plan projects that the budget process will ultimately
result in a combination of reduced city property tax rates, and funding for major projects.
Economies of Scale & Other Operating Efficiencies
Despite the proportionate increases measured in the fiscal impact table, above, the City should
expect to realize some economies of scale and additional operating efficiencies related to the C-
210 annexation. As a result, we project that the final property tax rate adjustment resulting from
the annexation will not be the full 17%, as calculated above. While some new city staff and
equipment will be necessary to provide the municipal services to the C-210 area, we would
expect that economies of scale and operating efficiencies could reduce the impact by as much as
2%-3%, making the net property tax impact due to annexation closer to 13%-15%.
Reduction in Sewer Utility Charges
As stated previously, the C-210 area was/is largely served by the old Hamilton Western Utility
(sewer) system. The user charges related to that system are substantially higher than the user
charges related to the Carmel system, and it is expected that the monthly sewer fees for those
customers will be reduced by $16-$17 per month ($192 - $204 per year). Although this
reduction is not a pure "tax reduction," it does represent a distinct reduction in the municipal
service cost of operating the household, and as such, offsets the increase in property taxes.
Houses with a TTV of about $100,000 (such as those in Hunter Creek Village, Hunters Creek
South, Village of Mount Carmel, and Thistlewood) would see a property tax increase of about
$377 per year as a result of annexation. At the same time, they would see a decrease in their
annual sewer service charges of about $200 per year. This would leave these subdivisions with a
net municipal service cost increase of about $175-$180 per year, which will be used to pay for
the municipal services of the Street, Police and Administrative departments of the City (about
$15 per month). Of course, more expensive homes (such as those in Cheswick and Buckhorn)
will not enjoy a reduction of equal proportions. Additional research into the specific impact of
municipal service costs related to individual subdivisions will be provided as a supplement to
this report for the public hearing.
Conclusions
The overall fiscal impact of the C-210 annexation should result in a net increase of about 12% -
14% in property taxes, overall, when economies of scale and sewer charge reductions are
calculated, with further reductions in utility service charges for some residents.
Draft C-210 Annexation Fiscal Plan: Carmel, IN l 0
Legal Description of the Annexation Area
The legal description of the C-210 annexation area as presented in the ordinance is attached
hereto as Appendix A.
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 Carmel 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 existing and proposed residential development of
varying ages and values, however, some of the property is expected to remain in horse farms for
the foreseeable furore. The land use mix includes some commercial land uses, as well, along the
Meridian Corridor.
60% Subdivided
The annexation area has been more than 60% subdivided for various forms of development,
under the provisions of the comprehensive plan, zoning ordinance and subdivisions regulations
which govern the community (including the city and the unincorporated township).
Population Density
Due to the fact that the land is developed for commercial/business use, the population density is
estimated to be approximately 3 persons per acre, with additional population density accruing
constantly, as new residential development is created and occupied.
Contiguity
The annexation area is more than 12.5% contiguous to the corporate limits of the mtmicipality.
Draft C-210 Annexation Fiscal Plan: Carmel, IN ]]
Fire Protection
The annexation area already receives fire protection services from the City of Carmel as a joinder
service, as explained herein.
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.
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 part 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 fail 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 idiosyncracias 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 "municipal 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
Draft C-210 Annexation Fiscal Plan: Carmel, IN 12
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 ajoinder 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
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 a joinder 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 attorney) 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
Draft C-210 Annexation Fiscal Plan: Carmel, IN ].~
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 funding 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 joinder agreement.
These services relate directly to the management and maintenance of existing development (such
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 under 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
Draft C-210 Annexation Fiscal Plan: Carmel, IN ]4
equipment available.
Snow Removal
The Street Department provides snow removal services during winter months, ming 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.
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 Cannel-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 commemial 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, modem
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 right 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 Cannel 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 connectinq to that utility service to be borne by the
developer/owner, in accordance with the policies and fee structure of the Board of Public Works.
The development policies of the City of Carmel and the Carmel-Clay Plan Commission have
Draft C-210 Annexation Fiscal Plan: Carmel, IN ]5
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 ail 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
services when their private well runs 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 ail
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, in many cases outside of the corporate limits of the 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 mnnicipai water distribution line is within the
distributive area ora main trunk 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 100 lineal feet of the nearest property line of the parcel.
Draft C-210 Annexation Fiscal Plan: Carmel, IN ]6
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 unincorporated 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
respect, and is certainly not covered by property taxes. The ~vater 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 of extending
distribution lines is to be borne by the property owner/developer.
Property tax revenues are not a pa~ 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/demands of various customers. 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 municipal 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
Draft C-210 Annexation Fiscal Plan: Carmel, IN ] 7
The municipal wastewater utility provides access to wastewater collection, treatment and
disposal service to all properties within the corporate limits of the municipality, 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 interceptor, trunk or lateral sewer which
ultimately delivers wastewater to the municipal wastewater treatment plant. 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
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
Cannel 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 of wastewater utility services is equitable to all
property owners.
The municipal wastewater system extends beyond the corporate limits of the municipality and
municipal wastewater service is provided to property in unincorporated 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 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
Draft C-210 Annexation Fiscal Plan: Carmel, IN
property owners). In addition to monthly service charges, the wastewater utility has established a
system of fees for other services such as various eolmection fees, and/or supplemental fees for
special facilities installed to meet the needs/demands of various customers. The cost of
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
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.
/terns 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 zoniJ g 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
Draft C-210 Annexation Fiscal Plan: Carmel, IN 19
service. As above, these items are development amenities which vary on the basis of the
development and are reviewed within the plauning/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 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 "municipal services."
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 fxonts
to assure the controlled, methodical, organized growth of the city over the ve~ long tenn. 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 unincorporated 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 Cannel 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.
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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.
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 defme 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 Policy 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 Cannel 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
Cannel.
PreferenCe Toward Friendly Annexations
The City of Cannel 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
Draft C-210 Annexation Fiscal Plan: Carmel, IN 21
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 ail municipai 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 "municipai 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 fail
under the "development standards" of the city, and not under the "municipai services" of the city
would include, but not be limited to, such things as sidewaiks, curbs/gutters, development
greenspace, surface water management/retention, walking/hiking trails, street lighting, and other
similar improvements which are required as part of the development. Conversely, "municipal
services" shail 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 Boundarfes
The originai 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 "annexation 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
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"Volunta~ Annexation" portion of the policies.
Utility Service (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
above, that property becomes immediately subject to annexation by the city, as a condition of
receipt of sewer service. If said property cannot be configured 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
fmanciai incentives is appropriate to the fiscal and govemmentai interests of the city of Cannel.
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 ten'itory 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
annexation (non-remonstrance) agreements. The simple fact is that it is much simpler to annex
Draft C-210 Annexation Fiscal Plan: Carmel, IN 23
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.
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 Commercial//ndustrial Development
The statute makes special accommodation of commercial/industrial development under IC36-4-
3-13. Since commercial/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 Te~tory 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 Carmel 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 c210 tis pin
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