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HomeMy WebLinkAboutC-177 Financial Plan-MeridianORDINANCE C - I ~ 7 AN ORDINANCE ADOPTING A WRITTEN FISCAL PLAN ESTABLISHING A POLICY FOR THE PROVISIONS OF SERVICES TO ANANNEXEDAREA WHEREAS, the City of Carmel desires to annex an area along U.S. 31, Highway South of ll6th Street North of 96th Street, more particularly described in Ordinance ~-{~. WHEREAS, state law requires adoption of a fiscal plan and a definite policy for the provision of services to annexed areas: and WHEREAS, such a plan has been developed and presented to the Common Council, entitled "Fiscal Plan, 1994, Annexation of Area Along U.S. 31 Highway, South of ll6th Street, North of 96th Street"; NOW, THEREFORE, BE IT RESOLVED BY THE COMMON COUNCIL OF THE CITY OF CARMEL, HAMILTON COUNTY, INDIANA, THAT: 1. The Common Council of the City of Carmel, Hamilton County, Indiana, hereby approves and adopts the "Fiscal Plan, 1994, Annexation of Area Along U.S. 31, Highway South of ll6th Street, North of 96th Street", which Plan is attached hereto and made a part hereof, and hereby approves and adopts the specific policies for implementation of the Plan as set out therein; 2. Any monies necessary for the provisions of services as described and itemized in the attached Plan shall be budgeted and appropriated from the applicable fund, pursuant to state law and the City's budget procedure; 3. It is anticipated that this annexation will not result in the elimination of jobs for employees of other governmental entities, but in the event it does, then the City of Carmel shall assist such employees in obtaining new employment, but nothing herein shall require the City to hire any such employees. Common Council of the city of Ca 6 Ted Joh , s ATTEST: iding Officer Presented day of the Mayor of the, Cit of Carmel. mo.n the /~Gsan W. Jones, Cle easurer isordinance appr ved and signed by me on the , , 1994 at P]'35 o ' clock~.m. Ted Joh , r day of FISCAL PLAN United States Highway 31 Corridor Annexation October, 1994 City of Carmel TABLE OF CONTENTS Introduction ................................ 1 Section 1: Annexation Program ........... 2 Section 2: State Law Requirements ....... 2 Section 3: Data Analysis ................. 3 location size population structures land use topography and soils Section 4: Municipal Services ........... 4 Street Lighting Parks and Recreation Water Service Fire Hydrants Sanitary Sewer Storm Sewer Administrative Services Section 5: Plan For Hiring Additional... Governmental Employees Section 6: Financial Summary/ ........... Recommendation INTRODUCTION This report outlines a fiscal plan for the annexation of property into the corporate limits of the City of Carmel, Indiana. The real estate to be annexed includes an area commonly known as the "U.S. 31 Corridor, South of ll6th Street" preceding in a southerly direction to the centerline of 96th Street and U.S. 31. Indiana Statutes (I.C. 36-4-3 13(d)) requires the legislative body of the municipality, to develop a written fiscal plan and establish a definite policy by resolution as of the date of the annexation ordinance. The resolution is required to present cost estimates and a plan for the extension of municipal services to the areas proposed for annexation. The Statute requires the city to provide the annexed area, within one (1) year of annexation, with "planned services of a non-capital nature" which are q ivalent in standard and scope" to those "e u currently being provided to similar areas within the city. The City of Carmel will provide police and fire protection, traffic control, planning and building inspection services and road maintenance as required by Statute, subsequent to the annexation. The Statute further states "services of a capital .improVement nature must be provided within three (3) years of the effective date of the annexation, in the same manner as those provided" to similar areas within the city. The City of Carmel will provide or assume responsibility for street and road construction, street lighting, sewer facilities (where applicable), and stormwater drainage facilities as required by Statute. This report contains an estimate of the projected revenues and expenditures and a description of the services to be provided to the newly annexed area, as required by law. While the city is committed to providing services in the same manner as similar areas currently within the city limits, dollar figures presented here are only estimates and are subject to some change. Variations may occur depending on the rate and extent of completion of development currently under way and future development, future property assessments, and an increase or decrease in the cost of providing various services to the area annexed. Further, the estimates of revenue could be subject to statutory approvals from the State Board of Tax Commissioners for changes in the levy of the City of Carmel, Indiana. SECTION ONE ANNEXATION PROGRAM The purpose of annexation can be summarized. The purpose of moving forward with involuntary annexation can be summarized by the three goals. The three goals are: (1) To provide the residents of Carmel with a broad and stable economic tax base with the ability to provide needed municipal services at the lowest possible cost. (2) To plan for the quality and quantity of urban development in a coordinated and comprehensive fashion. (3) To preserve and enhance the public's health, safety, and welfare. SECTION TWO STATE LAW REOUIREMENTS A. INTRODUCTION To annex property, a municipality must ensure that the proposed annexation complies with the requirements set forth in IC 36-4- 3. The statute mandates that courts accept the annexation if the area meets either of the following criteria: 1. The boundaries of the are to be annexed must be at least one-eighth (12.5 percent) contiguous to the corporate limits, and the area must meet one of the following conditions: a. Have a population density of at least three (3) persons per acre; or b. Be zoned for commercial, business, or industrial uses; or c. Be at least 60 percent developed; OR 2. The boundaries of the area to be annexed must be at least one-fourth (25 percent) contiguous to the corporate limits and the area must be needed and can be used by the municipality for its development in the reasonably near future. In either case, the municipality must also prepare a written Fiscal Plan for providing services to be furnished to the annexed territory, together with the methods for financing such services. · B. ONE FOURTH CONTIGUITY The area annexed meets the first criteria which has been established to determine the validity of annexation conclusion. C. CONCLUSION The area should be annexed in the City of Carmel because it satisfies the requirements that have been established by the state statutes; the area proposed for annexation is more than one-eighth contiguous to the City of Carmel and is necessary to the continued growth and development of the community. SECTION THREE DATE ANALYSIS A. LOCATION The area proposed for annexation is located west of the City of Carmel. It is bounded on the north by ll6th Street, on the south by 96th Street, on the west by Spring Mill Road, and on the east by College Avenue. B. SIZE The proposed annexation encompasses an area of approximately 558 acres. C. POPULATION The area is generally developed in a commercial sense and generally the area is zoned commercial and therefore there is no individuals who reside in the area. D. STRUCTURES The structures are generally commercial with a few institutional structures. E. PATTERNS OF LAND USE The area to be annexed is commonly known as the "U.S. 31 Corridor, South of ll6th Street". It is the purpose of this corridor to encourage quality large scale commercial development which establish basic standards for structures to be constructed on properties permitting innovative site designs and efficient land usage. Approximately 82% (459.12 acres) of the area to be annexed is zoned either B-6 or B-5 Business District, both of which allow the location of land uses such as light commercial and office uses appropriately placed adjacent to limited access highways. Their intent is to permit these uses to develop in an area of high commercial potential utilizing access roads and existing secondary streets and roads and buffering surrounding residential uses. Approximately 8% (42.59 acres) of the are to be annexed is zoned either B-3 or B-1 Business District which allows for well planned retail and professional office type development. Approximately 10% (56.82 acres) is zoned S-2 Residence District which allows for low density single family residential development. The areas zoned for business uses are presently fairly well developed out, however the area zoned residential in completely undeveloped. B-6 Zoning B-5 Zoning B-3 Zoning B-1 Zoning S-2 Zoning 276.74 acres 182.38 acres 10.33 acres 32.26 acres 56.82 acres TOTAL 558.53 acres (See Attached Exhibit A) F. TOPOGRAPHY AND SOILS Soil maps from the United States Department of Agriculture's Soil Conservation Service for Hamilton County, Indiana, identify Crosby-Brookston soils are deep, nearly level, somewhat poorly drained and very poorly drained, medium textured and moderately fine textured soils that formed in a thin mantle of loess and the underlying glacial till on uplands. SECTION FOUR (See Attached Exhibit B) A. STREET LIGHTING The City of Carmel is not responsible to provide street lighting at intersections, therefore, there will be no expense incurred with street lighting. The street lighting of commercial and residential subdivisions are the responsibility of the developer. B. PARKS AND RECREATION While individuals do not reside in the area, potential users of the park and recreational system who would work in the area would have available the joint park facilities of the Carmel/Clay park system. C. WATER Water service is provided to the real estate which is proposed to be annexed by the Indianapolis Water Company. The extension of water service to individual developments would not be a function of the City of Carmel and, therefore, there would be not annual cost or maintenance expense connected with water service. D. FIRE HYDRANTS Fire hydrants are installed, owned, and maintained by the Indianapolis Water Company (IWC) and are, therefore, not a responsibility nor a cost to be incurred annually or initially by the City of Carmel. E. SANITARY SEWER The city does not presently provide sanitary sewer service to the area proposed for annexation. Clay Regional Waste, a utility company, by means of contract with the owners of real estate, will provide the necessary sanitary sewer facilities and maintenance services to the affected area if it is desired. As a result, the city will incur no expenses as a result of this annexation for capital expenses nor maintenance. STORM SEWERS The area as reg a regulated must be requested for all new lent are The developer is to i. conform with the standaz estak The city will then be res of systems which are drain. ~ting storm water drainage facilities within annexed ~der the jurisdiction of the lton Cc Surveyor [rains. All new faciliti~ .ifications to office. Plans ~e County Surveyor. .rainage facilities to by the County Surveyor. .r the maintenance of parts part of the regulated The city does not capital impr properties w{ is the respon~ As a result operating overview o are pr, ,rm sewer ef funds available for Zt is the pol the city, for all city, that the of storm sewers of the owner of the pr rty affected. city will not incur any capr or annual es for servicing the projected ea. An the storm sewers in the area the are regulated drains and due to the fact ly developed and commercial type properti, , it is anticipated that the city will incur no costs.'~ G. ADMINISTRATIVE SERVICES All administrative functions of the city will be available to the Annexed area upon annexation, pursuant to Statute. These services are Planning and Zoning, General Administration of regulation of program. General Administration includes all of the regulatory and program functions of the various city departments. Upon annexation the city's departments will be notified and will expand their jurisdictional areas accordingly. The only immediate costs that the city will incur will be the publication of public notice, which in the perspective of the overall revenue, is deminimus. SECTION FIVE PLAN FOR HIRING GOVERNMENTAL EMPLOYEES DISPLACED BY ANNEXATION It is not anticipated that the job of any governmental employee will be eliminated from other governmental agencies as a result of this annexation. However, if any governmental employee is displaced as a result. of this annexation and makes application · for employment with the City of Carmel within thirty days after displacement, such employee will be treated as if the employee were a city employee on "lay-off" status for purposes of hiring for any vacant position similar to the government position from which the individual was displaced. SECTION SIX FINANCIAL SUMMARY AND RECOMMENDATION The purpose of this section is to project the revenues and expenditures from the proposed area of annexation. This section also provides a summary of the expenditures as they are compared to revenues collected from property taxes. A. REVENUES Property taxes are the primary source of revenue to be received from the annexation area. Real and personal property taxes are computed from the gross amount of assessed valuation in the area which can be obtained from the Office of the Hamilton County Assessor. The formula for computing tax revenue is illustrated in the following 'table: TABLE A TAX REVENUE FORMULA NAV- E 100 X CR = PT WHERE: NAV = CR = PT = Net Assessed Valuation Exemptions City Tax Rate Property Tax The total net assessed value of the area proposed for annexation is approximately $26,000,000 of which approximately $24,000,000 is included as net assessed value of Clay Township for the 1993 payable 1994 tax year. Estimated property tax revenue can be determined by applying the 1994 City of Carmel tax rate ($2.1813) to the estimated net assessed value of real and personal property in the annexation area, resulting in property tax revenue of approximately $566,000. Table B details the components of the 1993 payable 1994 City of Carmel tax rate. TABLE B CITY TAX RATE Fund Corporation General M.V.H. Cumulative Sewers- Cumulative Cap. Dev. Lease Rental Payment Debt Service $1.5184 .1624 .0500 .1000 .3303 .0202 Total City Rate $2.18 13 In addition to real and personal property taxes, the City receives revenue from the Cigarette Tax, the County Option Income Tax (COIT), the Alcoholic Beverage Tax, the Automobile Excise Tax, and the Motor Vehicle Highway (MVH) and Local Arterial Roads and Streets (LR&S) funds. Some of these funds are based in part on the City population, some are based on the tax levy and some are based on the City's street mileage. Since no change in population is expected to result from annexation and no significant adjustment to the City's tax levy. or street mileage is expected, revenues from these sources are not expected to change materially. Other sources of revenue for the City are derived from fees collected for services rendered for plan reviews and inspections related to development including building permits. Based on the shared cost arrangement with Clay Township discussed below the City expects building permit fees to increase by approximately $17,000. B. EXPENDITURES Capital costs (one time expenditures) and operating costs (continuing expenditures) are summarized in Table D. In identifying these costs the City reviewed all services provided and considered the needs of the annexation area to be treated equally with the needs of other similar areas currently within the City of Carmel. Based on this review the City determined that as a result of the annexation no capital costs would be needed and additional operating costs would be needed in the following areas: e Additional police officers and related costs: In order to maintain current response time to all areas of the City of Carmel two additional officers will be required. Salary, benefits and related costs are estimated to be $50,800 per officer. · Additional street department costs: Based on the addition of 5.94 miles to the City's street system and an annual maintenance cost of approximately $9,800 per street mile, it is estimated that street department costs will increase by $58,200. · Increase in the City of Carmel's portion of costs shared between the City and Clay Township: Fire protection, communication center, recreation, community development, and zoning and plan commission expenditures are currently shared between the City of Carmel and Clay Township. The allocation of cost is currently based on the relative net assessed value of each unit. Since the annexation area is currently within Clay Township the allocation base and proportionate share of these costs will change as shown in Table C. TABLE C City of Carme1 Amount % Net assessed valuation prior to annexation (1993 and 1994) $354,637,840 57.65% Estimated change as a result of annexation 25,941,312 Net Assessed Valuation after Annexation $380,579,152 61.71% Allocated Costs Prior to Annexation: Firefighting Communication Center (A) Recreation DOCD and Plan Commission Total 2,700,100 601,700 335,500 401,600 4,038,900 57.65% 78.83% 57.65% 57.65% Allocated Costs after Annexation: Firefighting Communication Center (A) Recreation DOCD and Plan Commission Total 2,890,000 617,200 359,100 429,800 4.296,100 61.71% 80.85% 61.71% 61.71% Increase in Allocated Costs Resulting from Annexation $ 257,200 Clay Township Amount % $260,490,540 42.35% (24,319,770) $236,170,770 38.29% Total Amount $615,128,380 1,621,542 $616,749,922 (A) Clay Township shares in 50% of the total Communications Center costs. TABLE D EXPENDITURES ACTIVITY CAPITAL COSTS OPERATING COSTS Shared Costs: Fire and Communications Center Recreation DOCD and Plan Commission $ 0 $205,400 0 23,600 0 28,200 257,200 Other: Police 0 101,600 Street Maintenance 0 58,200 TOTAL $ 0 $417,000 C. SUMMARY Assuming the area is annexed in 1994, real and personal property tax revenue from the annexation area will not be collected until 1996. Table E details the revenues minus the expenditures for the annexation area for 1996. TABLE E 1996 REVENUES MINUS EXPENDITURES REVENUE Property Tax Revenue Building Permit Fees EXPENDITURES $565,900 17,000 582,900 417,000 REVENUE IN EXCESS OF EXPENDITURES $165,900 D. RECOMMENDATIONS This Fiscal Plan, prepared to fulfill the requirements of Indiana State Law illustrates that the proposed annexation is in accordance with the applicable State statutes. The estimated revenues exceed the estimated expenditures in 1996, the first year of property tax collections. As a result, it is recommended that this area be annexed. 10 STATE COUNTY TOWNSHIP TABLE F CITY OF CARMEL/CLAY TOWNSHIP 1993 PAYABLE 1994 CARMEL Fair Board State Forestry Subtotal .0035 .0065 .0100 Revenue Cum. Bridge Bldg. Welfare Co. Welfare HCI Co. Welfare Admin. Ham. Co. Park & Rec. Co. Health Department E.M.S. Property Reassessment Cum. Cap. Development Med. Aid To Wards Children w/Special Needs Lease Rental Payment Jail Lease Rental County Maj or Bridge Subtotal .5454 .0800 .0598 .0141 .0249 .0642 .0166 .0145 .0266 .0100 .0006 .0034 .1935 .0864 .0100 .3300 Township Poor Relief Firefighting Cum. Fire Recreation Subtotal .00 .00 .00 .00 .00 .01 91 50 00 00 00 41 CLAY TOWNSHIP .0035 .0065 .0100 .5454 .0800 .0598 .0141 .0249 .0642 .0166 .0145 .2066 .0100 .0006 .0034 .1935 .0864 .0100 1.3300 .0091 .0050 .4474 .1000 .0150 .5765 LIBRARY Library Debt Service Subtotal SCHOOL General Debt Service Capital Projects Special Education Transportation Subtotal CORPORATE Corporation M.V.H. Cum. Cap. Deve. Cumulative Sewer Lease Rental Payment Debt Service Subtotal TOTAL PROPERTY TAX RATE .1411 .0596 .2007 .3423 .9781 .2312 .0100 .4813 .0349 .5184 .1624 .1000 .0500 .3303 .0202 .1813 .771 0 · 1411 .0596 .2007 3.3423 .9781 1.2312 .0100 .4813 6.0349 8.1521 11 S-2 B-2 B-6 /- --L--__ " 13 13 D E! wC)QDS R-i HOME PLACE D 3 I S-2 - EXHIBIT B T. 20N. T. 19N. T. 18N. T. 17N ~6 ~ ---I i } {. WASHINGTON Jo' ~ , 1 z CLAY '. 1 WHITE COL'NTY SOIL LEGEND I Each arto outlined on this map c mor~ than one kind of foil. The , meant for gerteml planning rathe for decisions on the use of specifi !'1 121 I'3 I 4 ] Crosby-BrcDkston: Deep, nearly level, somewhat poorly drained and very poorly drained, medium textured and moderately fine textured soils that formed in a thin mantle of ioess and the underly,ng ltlacial till on uplands Miami-Crosby: Deep, nearly level to strongly sloping, well drained and somewhat poorly drained, medium textured soils that formed in a thin mantle 9f Ioess and the underlying glacial till on uplands Ockley-Westland-Fox: Deep and moderately deep over sand and gravel, nearly level to strongly sloping, well drained and very poorly drained, medium textured and moderately fine textured soils that formed in outwash on terraces Shoals-Genesee: Deep, nearly level, somewhat poorly drained and well drained, medium textured soils that formed in alluvium on flood plains 16 RIVER 36 31 16 HANCO('K i 1 1 2 COt'NTY R6E.