HomeMy WebLinkAboutCC-06-21-04-03 Fiscal Plan/C-263SPONSORED BY: Rattermann
RESOLUTION NO. 06-21-04-03
A RESOLUTION OF THE COMMON COUNCIL OF
THE'CITY OF CARM]EL, INDIANA
TO ADOPT THE WRITTEN FISCAL PLAN AND DEFINITE POLICY
FOR AN AREA KNOWN AS ANNEXATION TERRITORY
IN ORDINANCE NO. C-263
WHEREAS, Indiana Code Section 36-4-3-3.1 requires the City to develop a written fiscal
plan and establish a definite policy, by resolution of its legislative body, that meets the
requirements of Indiana Code Section 36-4-3-13 for the area proposed to be annexed into the
City by Ordinance No. C-263 (the "Annexation Territory"); and
WHEREAS, a copy of the written fiscal plan and definite policy for the Annexation
Territory is attached hereto; and
WHEREAS, this written fiscal plan and definite policy adopted by resolution complies
with the requirements of Indiana law to provide services ofa noncapital nature to the Annexation
Territory within one year after the effective date of the annexation in a manner equivalent in
standard and scope to those noncapital services provided to areas within the corporate
boundaries, regardless of similar topography, patterns of land use, and population density; and
WHEREAS, this written fiscal plan and definite policy adopted by resolution complies
with the requirements of Indiana law to provide services of a capital nature to the Annexation
Territory within three years after the effective date of the annexation in the same manner those
services are provided to areas within the corporate boundaries, regardless of similar topography,
pattems of land use, and population density and in a manner consistent with federal, state and
local laws, procedures, and planning criteria; and
NOW, THEREFORE, BE IT RESOLVED by the Common Council of the City of
Cannel, Indiana as follows:
Section I. The above refitals are incorporated herein by reference and shall be deemed
part of the written fiscal plan and definite policy.
Section II. The Common Council of the City of Carmel, Indiana hereby adopts the
materials s~t forth in the attached as the written fiscal plan and definite policy for the Annexation
Territory which is the subject of Ordinance No. C-263.
Section III. The sections, paragraphs, sentences, clauses and phrases of this Resolution
are separable, and if any phrase, clause, sentence, paragraph or section of this Resolution shall be
declared unconstitutional, invalid or unenforceable by the valid judgment or decree of a court of
competent jurisdiction, such unconstitutionality, invalidity or unenforceability shall not affect
any of the remaining phrases, clauses, sentences, paragraphs and sections of this Resolution.
Section IV. This Resolution shall be in full force and effect from and after the date of its
passage, execution by the Mayor, and such publication as is rextuired by law.
PASSED by the Common Council of the City of Carmel, Indiana, this ~ I .day of
~_, 2004, by a vote of "-/ . ayes and ~Z~ nays.
co c L mR TsE ciTY ov CAMEL
/Ronald ~'~-~ident P~o Tempor~ D. y
ATTEST:
Presented by me to the Mayor of the City of Carmel, Indiana this ] &~day o 2004,
at/o~.:~.~' t~ .M.
a L. Cordray, IAMC, C -
-2-
l~/~es Br~inard, May
ATTEST:
L. Cordray, IAMC, Clerk-Treasur
Preparcd by:
Nicholas K. Kite
Barnes & Thomburg
11 South Meridian Street
Indianapolis, Indiana 46204
-3-
Carmel, Indiana
Hamilton County
(Draft)
Fiscal Plan:
Southwest Clay
Annexation Area
The Fiscal Plan may be reviewed in the offices of the Department of
Community Services located on the 3ra Floor of City Hall. Copies of the
Fiscal Plan are available at this location for a copying fee of $0.25 per
page (black & white), OR interested parties may obtain a copy of the
Fiscal Plan from the City's internet web page at www. ci. CarmeLin. us.
For any questions regarding this annexation, the public shouM contact
Michael Hollibaugh, Director, Department of Community Services, at
317/571-241.7.
June 10, 2004
Narrative Prepared by:
Michael R. Shaver, President
3799 Steeplechase Drive
Carmel, IN 46032
(voice) 317/872-9529
(fax) 317~872-9885
(e-mail) wabsci~aol.com
Contiguity
The Southwest Clay Annexation Area is more than 25% contiguous to the
existing corporate limits of the City of Carmel.
Population Density
The estimated population density of the annexation area is less than 3.0 persons
per acre.
60% Subdivided"
The annexation area is more than 60% subdivided and urbanized, in
accordance with statute.
"Needed & Can Be Used"
The Southwest Clay Annexation Area is 'needed and can be used by the City
for its development' at this time. The City of Carmel took steps to affirm and
verify that the area was needed and can be used for its development in several
ways over the past 50 years.
City Established Planning Jurisdiction
The City of Carmel established development policies which declared and
assured that the annexation area was needed and would be used for the
development of the city. Carmel exerted plarming jurisdiction over the
Southwest Clay area decades before any direct action to annex the area, for
the express purpose of assuring that development in the area would be ready
for annexation and incorporation into the City when it became appropriate to
do so. By establishing ajoinder agreement with Clay Township, Carmel
assured that new development in the annexation area would take place in
accordance with high standards of development, thereby protecting and
supporting 'property values in the unincorporated area of Clay Township.
It is noteworthy that at the time of establishment of the planning joinder between
Carmel and Clay Township, Hamilton County had no zoning and hence had no
development standards. Furthermore, the Township was not empowered to
Annexation Fiscal Plan: Southwest Clay Area (06/10/04 draft) 2
undertake planning and zoning under Indiana law. Therefore, the planning and
zoning joinder between Cannel and Clay Townstfip was the only method by
which Carmel could assure that the unincorporated area would be developed in
a manner that would ensure appropriate development which could be easily
assimilated into the City, without significant expense to extend services.
Without Carmel's implementation of high development standards it is entirely
possible that the annexation area would have developed in a scattered,
fragmented and unplanned manner, inconsistent with Carmel's standards. It is
Carmel's capacity to plan and zone the annexation area and the implementation
of high development standards which have assured preservation of the high
property values of the annexation area.
The City of Carmel ha~ established and repeatedly affirmed that the planning
and zoning joinder agreement would serve to assure high quality development in ·
the unincorporated areas because the city would eventually grow to fill the
entire township. The reason for this continuous affirmation of the importance of
planning and zOning in the annexation area is expressly because the area is
needed and can be used for the development of the City in the reasonably near
future. Recently, the City ended the planning joinder agreement with the
Township, due to the extensive annexation of Clay Township which has taken
place in the last 5 years (leaving little of the township unincorporated). The new
Carmel Plan Commission has now been established to replace the Commission
formed under the joinder, and the City Plan Commission has specific
jurisdiction over the Southwest Clay area. These actions clearly affirm the
City's position that the Southwest Clay area is needed and can be used for the
development of the City of Cannel.
At this time, there are only two areas of Clay Township which remain
unincorporated: Southwest Clay and the Homeplace Area..All other areas
have either been annexed into the City or they are currently under agreements
to be annexed within 2 years.
Established Written Annexation Policies Addressing
the Area
The Carmel City Council also specifically undertook an effort to formally
establish written Annexation & Growth Policies which were developed and
passed by the City Council several years before this annexation. These policies
outlined the City's expectations with regard to service delivery, as well as
Annexation Fiscal Plan: Southwest Clay Area (06/10/04 draft)
defining what services were to be delivered as a result of annexation and clearly
separating "municipal services" from "development standards."
These annexation & growth policies clearly stated the intent of the City Council
that the City was expecting to annex the entirety of Clay Township at such time
as it became evident that certain areas, were appropriate to serve.
Strategic Planning for the Township
The City also affirmed that the Southwest Clay area was needed and can be
used for the development of the city by performing a study of the land available
for new development east of Spring Mill Road. That study confirmed that the
City had only a small amount of land available for new development east of
Spring Mill Road and that the constraint of lacking available land for
development would have an impact on longrterm property tax rates for the City
(forcing property tax rates to increase, due to lack of new development).
The conclusion of that study was that Carmel should begin developing plans to
annex western Clay Township. The annexation of Southwest Clay is the last
step in that process. These actions affirm that the Southwest Clay area is
needed and can be used for the development of the City of Carmel.
Fire Stations & Street Department Facilities
The City of Carmel has also acted to affirm its assertion that the areas of
western Clay Township (including Southwest Clay) were needed and can be
used by the City for its development in its configuration of municipal service
facilities. There is a Fire Station at 106th & Shelbome Road in the Southwest
Clay area, in order to assure that proper fire service was available. In addition,
the City has constructed its new Street Department facility at 131st &
Shelbome Road (immediately north of the annexation area) in order to assure
high levels of street maintenance service to western Clay Township, including
the Southwest Clay area. These actions further affirm that the annexation area
is needed and can be used by the City for its future development.
Purcha§e of Water Utility Assets
The City of Cannel also affirmed that the Southwest Clay area is needed and
can be used by the City for its development by purchasing the assets of the
Indianapolis Water Company ("IWC," now called Indianapolis Waterworks
(or "IW")) located in western Clay Township (including Southwest Clay). The
Annexation Fiscal Plan: Southwest Clay Area (06/09/04 draft) 4
City aggressively pursued the purchase of these assets over the objections and
reluctance of the City of Indianapolis, which purchased the bulk of the assets
from NiSource. During the debates/discussions of this purchase, the City of
Carmel categorically stated that it was the intent of the City of Carmel to use
this utility service area for its future development, and that the purpose of the
acquisition of the IW assets in Clay township was to protect the long term
interests of the customers located in this area, who would ultimately become
citizens of Carmel.
The City has made a significant investment in the process of acquiring these
water company assets which serves to affirm the City's intent in this regard in
part because these areas are needed and can be used by the City, as expressed
in IC36-4-3.
Plan to Provide Municipal Services
The City of Cannel recognizes the following municipal departments and
agencies as providing municipal services to residents of the City:
Administration/Mayor (non-capital services only)
Clerk-Treasurer (non-capital services only)
City Council (non-capital services only)
Department of Law (non-capital services only)
Department of Community Services (non-capital services only)
Engineering Department (non capital services only)
Potice Department (non capital services only)
Fire Department (non-capital services only)
Street Department (capital & non-capital services)
Carmel Utilities (capital & non-capital services)
Redevelopment Commission (non capital services only)
Providing Non-Capital Services
All non-capital services will be provided to the annexed territory within one
year after the effective date of annexation, and will be provided in a manner
equivalent in standard and scope to the non-capital municipal services provided
to the areas within the corporate boundaries of the City. The City
Administration, Department of Law, City Council and Clerk-Treasurer have
already begun the planning for extension of such services, and have initiated
efforts to organize existing and future resources necessary to assure that the
extension of services occurs in as smooth and efficient a manner as possible.
Annexation Fiscal Plan: Southwest Clay Area (06/09/04 draft)
The projected effective date of the annexation is to be between January 1 and
February 28, 2005, with all non-capital services to be in place within one year
after the effective date, as required by statute. For further clarification, all
municipal services are clearly defined in the armexation & growth policies of the
City of Carmel, as passed by resolution of the City Council.
MUNICIPAL ELECTIONS
Residents of the Southwest Clay area will become eligible to vote for municipal
officers, including the Mayor, Clerk Treasurer, City Council, etc., in regular and
special elections beginning on the effective date of the annexation.
CITY AD MINISTRA TION & MA YOR 'S OFFICE
The City Administration provides services under direction of the Mayor, who
serves as Chief Executive Officer of the City, including all Mayoral/
Administrative staff. (The Mayor also directs the activities of several other City
Departments.) The City Administration helps to develop and administer
municipal policy, as well as dealing with citizen requests of various types.
Services of the City Administration will be made available to the residents
of the Southwest Clay area on the date the annexation becomes effective
and will be extended in a manner equivalent in standard and scope to the
services provided to the other areas within the corporate boundaries of
the City. At that time, the City Administration will formally initiate the final
detailed plans for service delivery implementation, and the City Administration
will prepare or cause to be prepared any necessary documents or other
material necessary to assure that both capital and non-capital municipal services
will be extended to the annexation area on a timely basis, as provided in this
Fiscal Plan.
· In addition, some of the services of the City Administration are already
available to the residents of the Southwest Clay area by virtue of telephone calls
and requests for information related to this proposed annexation, as well as
other matters germane to the common interests of the residents of the
annexation, area, and the City.
CLERK-TREASURER
The Clerk-Treasurer serves as the Chief Financial Officer for the City. The
office is responsible for receiving and paying invoices for goods and services, as
well as managing and investing revenue strearns received by the City. The
Annexation Fiscal Plan: Southwest Clay Area (06/09/04 draft) 6
services of the Clerk Treasurer are provided on behalf of the residents of the
City, but do not accrue directly to the individual residents of the City, per se,
while the records of the Clerk-Treasurer are public.
The services of the Clerk Treasurer's office will be made available tO the
residents of the Southwest Clay area on the date the annexation becomes
effective, and will be extended in a manner equivalent in standard and
scope to the services provided to the other areas within the corporate
boundaries of the City.
CITY COUNCIL
The City Council serves as the Legislative Branch of municipal government,
with 7 councillors elec[ed by residents, of the City. The opportunity to vote for
city council and other municipal offices, as well as to vote in any special
elections of the City will be extended to the residents of the Southwest Clay
area immediately upon the effective date of the armexation.
However, it must also be added that the Carmel City Council already extends
many of the services and opportunities to be heard to the residents of the
annexation area. Such services include the opportunity to testify before the City
Council at public heatings, the oppommity to address the Council at Council
meetings, as well as Council Committee meetings, and the oppommity to
informally discuss issues deemed important by the residents of the area with the
City Council, either individually or'collectively. The City Council has often
afforded residents of the annexation area the opportunity to express their views
in shaping development policy for the community at large, despite the fact that
they were not residents of the incorporated city, and as such, some of the
services of the City Council have already been afforded to residents of the area.
The services of the City Council will be available to the residents of the
Southwest Clay area on the date the annexation becomes effective, and
will be extended in a manner equivalent in standard and scope to the
services provided to the other areas within the corporate boundaries of
-the City. .;
DEI'ARTMENr OF LAW
The Department of Law (DOL) provides legal services to the City of Carmel
for the purposes of creating and enforcing local ordinances, as well as
administering legal issues and processes of the City in its various activities. The
Annexation Fiscal Plan: Southwest Clay Area (06/09/04 draft)
services of the Department of Law are provided solely to the incorporated City
of Cannel and its departments and agencies, especially in defending the City
against legal actions by outside parties. The services of the Department of Law
are not formally extended to citizens and/or residents of the City, per se,
therefore, the services of the Department of Law will not be directly' available to
the residents of the Southwest Clay area, except insofar as the residents of the
Southwest Clay area might informally consult with the Department of Law on
matters related to city ordinances or other legal matters relating to the functions
of the incorporated city, or insofar as the residents of the annexation benefit
from the services of the Department of Law as provided to the municipal
corporation. The services of the Department of Law shall be provided to
the annexation area and will be provided in a manner equivalent in
standard and scope to the service DOL provides to the other areas within
the corporate boundaries of the City upon the effective date of the
annexation.
CITY COURT
The proposed annexation will have an impact on the City Court. Currently, the
County Sheriff patrols the roads in the annexation area and any ~raffic.
infractions or citations are sent to County Courts in Noblesville for ajudication.
After the effective date of annexation, the City Police will patrol the area and
traffic infractions, as well as any activity will be adjudicated in the City Court.
This is projected to significantly increase the court case load, and the cost of
operating the City Court. As a result of previous annexations, the Court
caseload increased 15% in 2003 (over 2002 levels).
The following is a breakdown of anticipated increases in the cost of operating
the City Court as a result of the proposed annexation.
Projected Impact of Annexation on City Court
rain max
1 new employee w/overhead $65,000 ! $70,000
2 add'l bai!!ffs for one additional court day per week $12,000 $15,000
Increase in Judge's work load $5,000 $5,000
Miscellaneous supplies, materials, doc storage, etc. $1,500 $2,000
Total estimated increase $83,500 $92,000
Annexation Fiscal Plan: Southwest Clay Area (06/09104 draft) 8
History of the City Court
When Judge Bardach became City Judge in 1993, the Court had 5 employees
(4 full-, 1 part-time). In 2004, the Court still has 5 employees (all full time),
despite a significant increase in the case load. Increases in court efficiency,
however, have been maximized and future increased case loads will.generate a
need for additional resources.
Between 2002 and 2003, annexations have caused the caseload to increase
15%, with another increase of 15%-20% increase projected for 2004
(resulting from continued annexation). The Judge has already requested 2
additional employees to handle increased case loads resulting from 2003 and
2004 annexations (bringing the total employees in the City Court to 7).
Further, the Court is adding another day of court each week over the current
average of 2 days per week. The proposed armexation is projected to continue
this trend of increasing court demand.
Revenues from City Court
Historically, the City Court has not generated enough revenues to pay for the
cost of the court. However, in 2003, the court generated a total of over
$396,000 in city fees, witha2004 budget of about $354,000. Based on
previous performance and results of annexation, tt is anticipated that growth in
court-generated revenues will increase to cover the projected increases in cost
as cited above.
The services of the City Court will be provided in a manner equivalent in
standard and scope to services provided to the other areas within the
corporate boundaries of the City upon the effective date of the
annexation. As City Police begin to write traffic tickets in the annexation
area, the services of the City Court will be extended into the annexation area.
CARMEL COMMUNICATION$ CENTER
The proposed annexation will have an impact on the services of the
Communications Center. The Director of the Communications Center has
anticipated the' combined impact of annexation and growth and has endeavored
to plan for' smooth transitions to increasing the service territory by increasing the
hardware capability of the communications center.
The Director anticipates receiving a total of more than 6,000 emergency calls,
reporting an estimated 5,000 emergencies, resulting from this annexation. The
Annexation Fiscal Plan: Southwest Clay Area (06/09/04 draft) 9
shift in call handling responsibility will not be insignificant, however, the
Communications Center is aware of the growth in demand and has been
increasing efficiencies of operation in order to optimize performance.
Within the last 3 years, the Communications Center has increased from 4 to 6
consoles in anticipation of annexation, and growth of the City. The departmental
staffing runs for 4 shifts per day, meaning that staffing policies require the h/ring
of 4 new people to operate one work station for a 24-hour period. It is
currently not known whether the annexation will require the addition of a full
work station (4 new staff) in order to maintain call response performance,
however, the activity will be closely monitored to assure high-quality service
continues to be provided.
Two work stations have already been added to reduce capital costs associated
with these services (therefore, 8 people will be needed to operate the 2 new
consoles). The table below projects the personnel and other needs of the
Communications Center with regard to this annexation.
Projected Impact of Annexation on Communications Center
hire date # employees est unit cost est. total cost
3/06 1 $48,000 $48,000
9/06 1 $48,000 $48,000
3/07 1 $48,000 $48,000,
9/07 1 $48,000 $48,000
total 4 $192,000 $192,000
The Communications Center will begin converting the annexation area from
county notice/response to city notice/response immediately after the effective
date of the annexation. It is likely to require several months to adjust and test
the system to ensure reliability, and the services of the Communications Center
will be fully operational no later than one year after the effective date of the
annexation. Additional staff will be added as demand increases, based on
system performance.
The services of the Communications Center will be provided in a manner
equivalent in standard and scope to services provided to the incorporated
area within one year after the effective date of the annexation (no later
Annexation Fiscal Plan: Southwest Clay Area (06/09/04 draft) -~ 0
than 2/15/06). The Director has already taken steps to secure the necessary
hardware for the Center and to make initial preparations to convert the
annexation area to Cannel calls, rather than to the County.
DEPARTMENT OF COMMUNITY SERVICES (DOCS)
'DOCS already provides its complete services to the Southwest Clay area.
DOCS services include coverage in the Comprehensive Plan, coverage by the
zoning ordinance, administrative jurisdiction of the Carmel Plan Commission for
review/approval of development proposals, property/developmcut permits and
inspections, citizen/resident services in answer to inquiries and requests
regarding developraent issues, code enforcement, and other issues of planning
and development control.
These services were previously offered by DOCS under the joinder agreement
with Clay Township described above, and continue to be offered to all of Clay
Township under the new Plan Commission (which is no longer under the
joinder). The services of DOCS are in effect in the Southwest Clay area at this
time.
The services of the DOCS will be made available to the residents of the
Southwest Clay area on the date the annexation becomes effective, and
will be extended in a manner equivalent in standard and scope to the
services DOCS provides to the other are® within the corporate
boundaries of the City.
ENGINEERING DEPARTMENT
The services of the Engineering Department involve a number of activities,
primarily centering around the engineering issues related to development and
redevelopment. The Engineering Department works directly under the
supervision of the Mayor and also reports to the Board of Works. The
Engineering Department is probably most visible to the public in its role in
supervising the design of new roadways and thoroughfare projects, as well as
providing project supervision, project administration and construction
manageme..nt for capital improvement projects throughout the City. The
services of the Engineering Department will be extended to the
annexation area within one year of the effective date of the proposed
annexation, and will be extended in a manner equivalent in standard and
scope to those provided to the other areas within the corporate
boundaries of the City.
Annexation Fiscal Plan: Southwest Clay Area (06/09/04 draft) 11
POLICE DEPAR TME~VT
The proposed annexation of the Southwest Clay area will include extending the
services of the Carmel Police Department into the annexation area. The City
has been systematically adding to its Police force in recent years, in anticipation
of, and in response to, the annexation of unincorporated Clay Township. Each
of the past 4 years, new police officers have been added to the force, including
equipment and training.
The annexation of Southwest Clay is anticipated to require the addition of 6-7
new police officers, to replace the County Sheriff's Department officer which
now patrols the area. It should be noted that the Southwest Clay area contains
several upscaie private subdivisions which retain their own security patrols, and
that some of those areas are gated subdivisions with secured access. The table
below provides a detailed breakdown of the estimated cost of extending police
service to the annexation area.
Carmel Police Depadment Staffing: 2001-2004
year Sworn officers civilian
2001 75 14
2OO2 77 14
2003 82 14
2004 (proposed) 92 15
2005 (projected)100 15
The table above shows the staffing levels of the Carmel Police Department
since 2001, with the 2004 staffing number as of April 14, 2004. The projected
staffing for 2005 includes 4 new officers budgeted for hiring after June 30,
2004, and another 4 officers budgeted for hire after September 30, 2004,
according to the Chief of Police.
The projected costs for automobiles is armuaiized through leasing which enables
the City to,lease police cars in a fully equipped condition, thereby reducing the
fiscal strain associated with large cash purchases.
Annexation Fiscal Plan: Southwest Clay Area (06/09/04 draft) 12
Estimated Cost of Extending Police Sen/ice to Washington Township
units unit cost Est. cost of service
min max min max min max
personnel & 6 7 $90,000. $100,000 $540,000 $700,000
equipment
automobiles 6 7 $18,000 $20,000 $108,000 $140,000
auto eqpt. 6 7 $15,000 $18,000 $90,000 $126,000
operating exp. 6 7 $2,250 $3,000 $13,500 $21,000
Est. Total Cost $125,250 $141,000 $751,500 $987,000
The Carmel Police Department will assume jurisdiction over the
Southwest Clay area within one year of the effective date of the proposed
annexation, and services will be extended in a manner equivalent to the
standard and scope of services which the Police Department provides to
the other areas within the corporate boundaries of the City.
It is expected that City Police patrols with existing staff will begin before one
year after the effective date of the annexation, and that additional personnel and
equipment will be added based on call demand and experience thereafter. The
Carmel Police Department has an excellent working relationship with the
County Sheriff, and the County Sheriff would continue patrolling the area until
the transition is made to City responsibility.
FIRE DEPARTMENT
The services of the Fire Department are already afforded the residents of
the Southwest Clay area in a manner equivalent to the standard and scope
scope of the services provided to the other areas within the corporate
boundaries of the City. Therefore, this annexation is projected to have no
impact on the services of the Fire Department.
The City of Carmel has prepared for the development of the Southwest Clay
area for many years, and has assured that the residents of Southwest Clay
receive high quality fire protection as the unincorporated area develops. A new
fire station was constructed at 106th & Shelbome Road several years ago to
fulfill this purpose, and a method of jointly funding the costs of this extended fire
protection has long been established between the City and the Township. This
Annexation Fiscal Plan: Southwest Clay Area (06/09/04 draft) 13
annexation is therefore expected to have no impact on the provision of fire
protection services in the Southwest Clay area.
STREET DEPARTMENT ('NoN-CAPITAL SERVICES)
The Street Department will require a full year to plan and program the extension
of its services to the annexation area, with Street Department non-capital
services (i.e., street and road maintenance) beginning one year after the
effective date of the annexation and provided in a manner equivalent in standard
and scope to the services provided by the street department in the other areas
of the city. The non-capital services of the Street Department included such
things as roadway mowing, pavement repair, snow removal, periodic sign
removal, and street sweeping.
The Street Department has studied the length and condition of roads in the
annexation area and has developed the projected cost information contained in
the table below. The Street Department analysis has noted that all of the
roadways in the annexation area meet the minimum standards of the city of
Cannel, which will enable the city to assimilate the roadways serving existing
development into the City's roadway network.
The Street Department has estimated the following expenses with regard to the
extension of Street Department services into the annexation area in a manner
that is equivalent to the services afforded the other incorporated areas of the
city.
Estimate of Cost: Extending Carmel Street Department Services
to Southwest Clay
Employees -
Cost of Employees (Including fdnge)
Fuels, Tires, Oils
Gravel; Sand, Bituminous, Paint
Salt
Paving, Striping
Equipment
Total of Costs
$8
$412,968
$13,400
$6,600
$35,200
$348,600
$780,000
$1,596,768
The Street Department anticipates that the equipment category will be a
combination of tandem axle trucks, single axle tracks, pick ups and street
sweepers, and the mix of equipment will be determined based on specific needs
determined during the first year. These estimates include only anticipated
Annexation Fiscal Plan: Southwest Clay Area (06109/04 draft) 14
maintenance and non-capital services and do not include any capital road
projects. New equipment will be ordered for delivery prior to 1 year after the
effective date of the annexation, with anticipated staffing beginning in the 3rd to
4th quarter post-annexation, and reaching full staffing at the end of the first year
after the effective date of the annexation, thereby meeting the statutory
requirement of providing non-capital Street Department services within one
year of the effective date of the annexation.
CARMEL UTILITIES: WATER
Carmel Utilities provides sewer and water utility services to a large portion of
the City of Cannel, however, the development in the unincorporated areas of
western Clay Township (including portions of Southwest Clay) has also been
served by other utility ~ervice providers. The bulk of the Southwest Clay area
has been afforded water service by the Indianapolis Water Company (now
called Indianapolis Waterworks or "IW"). The Southwest Clay area already
receives water utility services which are equivalent to those afforded the
residents of the incorporated city. Carmel will extend utilities to any parcel in
accordance with city utility extension policies. However, the city does not
anticipate receiving such a request from within the service area of the utilities.
Carmel Utilities is moving toward the negotiated purchase of the water assets of
IW located in Clay Township. The process of negotiation has been tedious,
and is believed to be nearing an end. The final terms of the purchase are not yet
known however, when the deal is consummated it will result in water utility
service by a single, integrated water utility in Southwest Clay.
The fact that Carmel Utilities has undertaken these purchase negotiations is
irrefutable evidence that the City of Cannel has been providing non-capital
water utility services to the Southwest Clay area in the form of planning and
engineering services, and that these same non-capital services will be provided
within one year of the effective date of this annexation in a manner equivalent in
standard and scope to the services afforded the incorporated City. In this case,
the provision of non-capital water utility services is anticipated to include
planning ap, d design of water system improvements necessary to complete the
acquisition of assets from IW, water main and utility maintenance, inspection of
installation of utility services to new development, and overall management of
the system. Obviously, the full assumption of responsibility for non-capital
water service can only take place after the purchase of IW assets is completed.
Annexation Fiscal Plan: Southwest Clay Area (06/09/04 draft)
SEWER SERVICE PROVIDED BY CLAY REGIONAL WASTE
The sewer utility services to the Southwest Clay area are generally provided by
the Clay Regional Waste District (CRWD), which has installed interceptor
sewers, collection sewers and has recently installed a sewage treatment plant
serving aportion ofthe Southwest Clay area. Since CRWD alreadyprovides
sewer service to the Southwest Clay area, the City of Carmel is not required to
provide sewer service in the annexation territory, under IC36-4-3.
However, it is important to note that the City of Carmel has further
demonstrated its long-term commitment to the integrated development of the
Southwest Clay area by entering into negotiations with the CRWD to combine
the interests and assets of the two wastewater utilities into one, integrated
organization. These negotiations have been ongoing and it is possible that the
negotiations will produce a successful result in the near future. If the
negotiations to combine assets is not successful, it is expected the CRWD will
continue to provide sewer services to the Southwest Clay area. If an
agreement to combine the assets of the two utilities is successful, the residents
of the CRWD service area will be served by one utility, with one user rate
structure for both capital and non-capital sewer services. Currently, the user
rates for sewer service by the CRWD is slightly higher than the rates of Carmel
Utilities.
The efforts of the city of Carmel to combine sewer utility service delivery into
one utility organization is based on the belief that an integrated system can
deliver sewer services more efficiently than the current network. This activity
serves as further affirmation that the City of Carmel has provided the planning
and management for incorporating the development of Southwest Clay into the
service network of the City of Carmel.
CARMEL REDEVELOPMENT COMMISSION (CRC)
There are no areas within the Southwest Clay area which are designated to be
under the jurisdiction of the CRC. One Economic Development Area,
designated by the County, is located in the far southwest comer of the
Southwest ,Clay area.
On the effective date of the annexation, the CRC can consider any request to
designate an economic development area or redevelopment area under Indiana
law, for the purposes of promoting economic development in the Southwest
Clay area.
Annexation Fiscal Plan: Southwest Clay Area (06109/04 draft) 6
PARKS DEPARTMENT
The City does not have a parks department, per se. The Parks Department is
officially run by the Township, however, the City contributes financially to the
Parks Department. In any event, the proposed 'annexation is not projected to
have any impact, whatever on the Parks Department. All parks services - both
capital and non-capital - are already fully and freely available to the residents of
the annexation area, including full and unrestricted access to local and county
parks in Carmel, in unincorporated Clay Township, and in other parts of
Hamilton County.
Providing Capital Services
The capital services of the City of Carmel will be extended to the Southwest
Clay area within 3 years of the effective date of this annexation, unless
otherwise specified in this fiscal plan. IC36~4-3 identifies capital services as
street construction, street lighting, sewer facilities, water facilities and
stormwater drainage facilities.
STREET DEPARTMENT (CAPITAL STREET CONSTRUCTION SERVICES)
The Street Department also offers the capital services of road construction and
re-construction which will be provided to the annexation area beginning in
2006. This does not mean that road reconstruction will begin in 2006. Instead,
it means that the road reconstruction needs of the annexation area will be
included in the project priorities of the City of Carmel beginning in 2006.
The Capital programming of the Street Department is based on several factors:
Road/pavement inspections;
Existing and projected traffic volumes;
Existing Thoroughfare Plans;
Project Cost;
Available Funding;
Right of way acquisition required;
Citizen support and
Completed/approved engineering designs.
Current Street Department policy requires that the condition of all roads be
examined approximately once annually (on multiple occasions if potholes,
alligator cracking or other pavement deterioration is detected). The results of
these inspections are then pooled into a comprehensive list based on condition
Annexation Fiscal Plan: Southwest Clay Area (06/09/04 draft) 1 7
of the roads, existing and projected traffic, extent of repairs or reconstruction
needed, cost of the project and funding available.
Once the road projects are organized and prioritized, the Engineering
Department and the Board of Works establish a funding plan based on
available funding from potential sources.
The planning and prioritization process for identifying, designing, funding and
constructing the individual road' projects for the annexation area will begin in
2006, with potential projects in the annexation area listed in 2007. Minor
projects identified for the annexation area (such as signalization and intersection
improvements) are projected to begin constmction in 2008.
It is difficult to project when actual construction of any road project will begin,
due to the myriad of issues associated with iuch construction projects (right of
way purchases, design~approvai delays, funding cutbacks/availability, etc.). In
some cases, when specific revenue streams can be identified which would pay
off the debt, the City has pursued a special road construction bond, however, it
is too early to tell if such a bond is possible for this specific annexation. Some
projects in the incorporated city have been on the road construction list for
several years (including projects like 116th Street widening).
The city recognizes that major corridors in the annexation area will require
major improvements, and the City has been assembling right of way from
developers for many years. The City anticipates major roadway projects for
the following corridors: 96th Street, 106th Street, 116th Street, Shelbome road,
Towne Road, Ditch Road, and Spring Mill Road. Hundreds of new homes
have been built in western Clay Township, and yet many county thoroughfares
remained only 2 lanes wide. As a result of this county policy, the thoroughfares
of western Clay Township will require major upgrades, including major
widening as funding becomes available.
Generally speaking, the City of Carmel attempts to deal with capital street
projects in, two major steps. First, the City improves key intersections to
improve the efficiency of the flow of traffic through those intersections. Second,
the City widens the thoroughfare between the intersections to increase the
traffic-handling capacity of the roadway corridor. The entire process takes
several years to complete under normal circumstances.
Annexation Fiscal Plan: Southwest Clay Area (06/09/04 draft) 18
The City has requested that the Coumy complete several major intersection
improvements over the next 2 years, as promised by County Commissioner
Steve Dillinger in 1998. In addition to these intersection improvements, the
City will examine the road condition of the streets and roads in the annexation
area and will incorporate the new road projects into the overall capital ·
improvements program for the City during the first year after the effective date
of the annexation (no later than 2/15/06).
After 2/15/06, the City will program the design, right of way acquisitio~ and
construction of assorted projects throughout the City, based on the pfiority list
and the amount of funding available to the City (including state and federal
funds). Projects will be pursued in accordance with the priority list. It is
possible that a bond issue would be considered in order to address
thoroughfare needs for the annexation area, but that decision has not yet been
made. If a bond issue is generated, the roadWaYs will be improved earlier than
if the roadway improvements must be funded through annual revenues.
The City anticipates spending $25 million in road reconstruction projects in the
annexation area, based on known projects, plans and criteria, probably
beginning in 2007, if the right of way is acquired. In all cases, the capital
services of the Street Department (consisting of the identification and
prioritization of projects in the annexation area) will be extended to the
annexation area within 3 years of the effective date of the annexation.
STREET LIGHTING
The City of Carmel does not provide street lighting as a capital service of the
City, as explained in the growth and annexation policies. Street lighting differs
in design and location between developments, depending upon the target
demographic of the development and the negotiations of the. developer and plan
commission for approval of the subdivision/development. As such, the
provision of street lighting differs widely throughout the City, and homeowners'
associations are responsible for the maintenance of street lighting in each
subdivision.
In cases where there is an unusual need for street lighting, the City's Board of
Works is prepared to receive and consider requests for the installation of street
lighting in certain areas. This practice is handled exclusively by the Board of
Works, however, this street lighting service/request, as administered by the
Board of Works, will be afforded to the annexation area one year after the
Annexation Fiscal Plan: Southwest Clay Area (06/09/04 draft) 19
effective date of the annexation in a manner equivalent in standard and scope to
the services afforded other areas of the incorporated city.
CARMEL UTILITIES: WA TER (CAPITAL SERVICES)
The annexation area already receives capital water services, mostly from
Indianapolis Waterworks ("IW," previously NiSource). Any request for
service which is received from the residents of the annexation area will be
addressed within the statutory time frame, however, when the IW acquisition is
complete, the cost of such extensions to the property owners will likely be
substantially lower than current costs associated with IW policies.
As stated previously, Carmel Utilities is in the process of acquiring the capital
assets of the IW which, are.located in Clay Township. This acquisition is not
required by IC36-4-3, but the acquisition demonstrates Carmel's commitment
to become the primary provider of municipal services in the incorporated City.
Since the' Southwest Clay area is largely located within the service territory of
IW, the City of Carmel was not required to pursue the capital cost that will be
necessary in order to acquire the IW water utility assets in Southwest Clay.
It is anticipated that the IW acquisition will be completed within the s~atutory
time frame, but the terms of the acquisition are not yet known. The capital
services of Carmel Utility's water utility will be provided to the annexation area
during this period. However, even if the acquisition oflW assets does not take
place, the Southwest Clay area already has capital water services provided by
IW, in accordance with the requirements of the Indiana Utility Regulatory
Commission (IURC), which has granted IW the right to serve the annexation
area.
CAPITAL SEWER SERVICE BY CLAY REGIONAL WASTE DISTRICT
Capital sewer utility services to the Southwest Clay area are provided by the
Clay Regional Waste District (CRWD), which has installed interceptor sewers,
collection sewers and has recently installed a sewage treatment plant serving a
portion of thc Southwest Clay area. Since CRWD already provides sewer
service to,~the Southwest Clay area, the City of Carmel is not required to
provide sewer service in the annexation territory, under IC36-4-3.
CAPITAL D RAINA GE SER VICES
It is important to note that the City of Carmel does not provide "drainage
services" as a municipal service of the City. Traditionally, the term "drainage
Annexation Fiscal Plan: Southwest Clay Area (06109/04 draft) 20
services" has been generally interpreted to mean the installation Of storm
sewers, combined sewers, drainage tiles or drainage ditches. The City installs
none of these. The only agency which provides "drainage services" in
accordance with the traditional meaning, is the' County Drainage Board which
· has the statutory capacity to levy an ad valorem' tax to repay the cosf of the
drainage installation. AS such, the County Drainage Board will retain such
authority in the annexation area.
Carmel's development policies handle drainage issues as a development
standard, requiting the developer to install stormwater.retenfion facilities based
on the recommendations of hydrological engineers which retains stormwater
runoffon the site of the development in order to preclude downstream flooding.
These stormwater ponds are the responsibility of the development's
homeowners' associatiOn for maintenance and the cost of constructing
stormwater drainage or retention facilities isineluded in the cost of the
development, which is generally conveyed to the residents in the price of their
parcel. As such, Carmel provides drainage in the form of requiring stormwater
retention facilities to be installed by the developer in a size sufficient to assure
that the development retains stormwater runoff onsite and does not cause or
exacerbate flooding or drainage problems downstream of the development.
(Obviously, subdivisions constructed earlier than these regulations were
imposed would have met a different standard of drainage performance.) Based
on tiffs definition, the City of Carmel already provides the annexation area with
capital drainage services in the same manner as those services are provided to
the property within the corporate limits.
Fiscal Impact Projections
The fiscal impact projections provided with this Fiscal Plan narrative was
prepared by a third party certified public accountant approved by the City and
is not a product of Wabash Scientific, inc.. Wabash Scientific, inc., is no way
approves, supports, underwrites nor assumes any responsibility for any product
that is not its own.
.;
Annexation Fiscal Plan: Southwest Clay Area (06/09104 draft) 21
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