HomeMy WebLinkAboutRIDGE ANNEXATION & ZONING - 1-89, A - SUBMITTAL DOCUMENTS - ROUND 1 - ANNEXATION DOCUMENTSANNEXATION INFORMATION
This short report will attempt to present some basic information concerning the
annexation of territory into the City of Fort Collins. Additional questions can
be addressed to the City's Planning Department at 221-6750.
Colorado Annexation Statutes
Under Colorado law, there are three types of annexation processes through
which a municipality may add to its incorporated territory. The three types of
annexations are:
(1) 100% Voluntary Annexation;
(2) 50%+ Voluntary Annexation; and
(3) Involuntary annexation of a county enclave.
A 100% voluntary annexation consists of an Annexation Petition signed by all
property owners and all residents of the area desiring to be annexed. A 50%+
voluntary annexation consists of an Annexation Petition signed by less than
100% but more than 50% of all property owners and all residents of the area
desiring to be annexed. In order for a municipality to act on a 50%+ type of
voluntary annexation, an annexation election must be held and if favorably
passed by the residents and property owners of the area to be annexed the
municipality may annex the area. Both types of voluntary annexations must
satisfy a minimum 1 /6 contiguous boundary requirement. A county enclave is
an area which is eligible for annexation because it has been completely
surrounded by properties which have been annexed into a city for a period of
three or more years. A municipality may annex these areas anytime after the
three year period expires.
The City of Fort Collins and Larimer County have adopted several policies and
agreements related to annexation. These are contained in the INTERGOVERN-
MENTAL AGREEMENT FOR THE FORT COLLINS URBAN GROWTH AREA.
According to the agreements, the City will annex any property which petitions
for voluntary annexation (the County has agreed not to approve any develop-
ment request - rezoning, subdivision, or planned unit development application
-on any property which is eligible for voluntary annexation). The City has also
agreed to annex county enclaves when they become eligible for involuntary
annexation.
Annexation of land means certain benefits and obligations to the annexing
municipality and property owners. These are summarized below.
Growth Management/Land Use Regulations
Annexation allows a municipality to increase its land area to accommodate new
growth and development and expand its tax base. A city can manage this
growth and development through the application of its' land use regulations to
the annexed areas. Land use regulations are usually in the form of zoning,
subdivision, and planned unit development ordinances. The City's Sign Code
regulations also apply to existing businesses located on annexed properties.
There is, however, an amortization period of five years for existing signs to be
brought into conformance with City code requirements.
Following annexation, the City will apply its Zoning Ordinance to the area.
New development and redevelopment of existing uses must conform to City
zoning codes requirements. Existing uses on properties which are annexed are
legal uses and cannot be terminated due to annexation whether or not they
conform to the City zoning code requirements applied to the property. This
provision includes the keeping of farm animals on properties. Expansion of
these "legal non -conforming uses" is also possible through City development
review and public hearing processes.
Taxes
The annexation of new territory can be a source of additional revenue to a
municipality. This revenue basically comes from the following sources:
1. Property tax.
After annexation, the County Assessor will apply a municipality's property tax
mill levy to an annexed area and the corresponding increase in taxes must be
paid. Specifically, the City of Fort Collins' 8.797 (1989) property tax mill levy
will be applied to annexed areas. However, upon annexation to Fort Collins,
the 8.777 (1989) property tax mill levy for the Poudre Fire Authority will be
eliminated from a property's assessments. Thus, from a property owner's
perspective, the net property tax increase after annexation is 0.020 mills. All
other tax assessments against a property, such as County taxes, School District
taxes, and any special district taxes, will remain after annexation.
In addition to the City's property tax mill levy, Fort Collins applies its storm
drainage basin fee to each property after annexation.
2. Sales and use taxes
Residents annexed into the city will have to pay city sales tax on consumer
goods and services, particularly on "big ticket" items such as automobiles and
appliances. Business and commercial establishments will have to charge city
sales tax but, should already be charging city sales tax to city residents. City
sales tax is also charged on electric utility usage.
Commercial establishments annexed must also pay a use tax on interior items,
such as furnishings, used in conducting the business.
Properties which receive City utilities after annexation would be charged the
appropriate utility user fee rate for the utilities. In cases where a property
was already receiving City utilities, the utility user rate would drop since the
City charges higher fees for out -of -city utility services.
3. Licenses
Existing commercial establishments located within an annexed area would have
to acquire the appropriate licenses from the City of Fort Collins in order to
conduct their operations within the city limits. Fees for these licenses are
typically minor in nature.
4. Development fees
New development and redevelopment activities on properties annexed into the
city will have to pay current City development fees where applicable. These
fees could include water and sewer utility plant investment and tap fees, street
oversizing fee, storm drainage fee, parkland fee (for residential developments
only), development application fees, and building permit fees.
5. Community Development Block Grants/Lottery Funds
Grant funds given to the City of Fort Collins from federal and state programs
are typically based on formulas which include population totals as a critical
component. Thus, if the City annexes developed residential areas there should
be an increase in revenue from these sources because of higher population
numbers.
Services and Facilities
A municipality commits to providing public services and facilities to newly
annexed areas. The various types of services and facilities are summarized
below:
1. Utilities (water, sewer, electric power)
A municipality would normally provide public utilities - water, sewer, and
electricity - to newly annexed areas and would collect the appropriate develop-
ment and user fees for the provision of those utilities. However, within the
Fort Collins UGA boundary, the City has negotiating "service area agreements"
with private utility districts to determine which agency can best provide water
and sewer service to certain areas, both inside and outside of the city limits.
The exception is electrical power which will be provided by the City to all
annexed areas. Conversion from an existing electric utility to City electric
utility service is done at no cost to the customer. City electric utility rates are
typically lower than other electric power suppliers.
Existing development would normally retain existing utility services (except
electric power) upon annexation. Services would not change unless a property
redeveloped or the existing service, such as a septic system, failed and created
a public health hazard. As indicated above, when connection is made to City
water and sewer utilities (but not electricity) the appropriate fees will be
charged.
2. Police protection
A municipality also expands its police protection service to annexed areas.
Usually, this results in a substantial increase in the level of police protection
in the form of improved emergency response times, more frequent patrol ser-
vice, better crime prevention and home security inspection programs, and
traffic enforcement.
3. Street maintenance
As annexed areas develop or redevelop, streets are required to be constructed
or upgraded to the City's street design standards for safety and maintenance
purposes. These standards include street paving installation requirements, and
the provision of curbs, gutters, sidewalks, and street lights. According the
UGA Agreement with Larimer County, any new streets .built within the UGA
boundary must be consistent with City design standards. This requirement is
designed to eliminate the necessity of upgrading streets after an area annexes
to the city.
When an existing development, which has streets which do not conform to the
City's street design standards, is annexed, there is no requirement that existing
streets be reconstructed to current design standards. The City will maintain
these streets but will not upgrade the street without participation from affected
property owners, usually through the use of a special improvement district.
4. Mass transit
As the community continues to grow the demand for expanded mass transit
service will also increase. As areas annex into the city, new and revised plans
will have to be made to change routes and/or add buses to serve new areas.
Presently, the City's bus system cannot serve outside of the city limits due to
Public Utility Commission regulations.
5. Parks and recreation
The demand for parks and recreation facilities and services will also increase
from annexed areas as they develop. According to the UGA Agreement with
Larimer County, the County collects a parkland fee equivalent to the . City's fee
from new developments within the UGA. The County fee is to be spent
within the area from which it was collected or be turned over to the City
when an area is annexed. Parkland fees are used to purchase and develop
neighborhood parks.
Participation in City 1overnment
Residents of an annexed area will be able to increase their official participa-
tion in City government. Presently, county residents can only voice their
opinions at public hearings. After annexation, these residents can vote in
scheduled and special City elections thereby having a political voice in
important decisions made by the City which affect them.
Other services and facilities not affected by annexation into Fort Collins
The following services and facilities provided by public, quasi -public and
private agencies and organizations are not affected by annexation of an area
into the City of Fort Collins. These are: natural gas utility, provided by
Public Service Company of Colorado; fire protection, provided by the Poudre
Fire Authority; schools, provided either by the Poudre R-1 School District or
Thompson R24 School District; and hospital services, provided by the Poudre
Valley Hospital District.
Summary
A final point about an annexation is that the decision to annex, or not to
annex, a property is at the sole discretion of the City, either through the
passage, or non passage, of an Annexation Ordinance by the City Council. In
some rare cases, a proposed annexation is subjected to a vote of the citizens of
the city at an annexation election, such as the 1983 Anheuser-Busch election.
This type of community -wide annexation election should not to be confused
with the election required for a 50%+ voluntary annexation in which only
property owners and residents of the area proposed for annexation can vote.
There is no law which requires a municipality to annex any piece of property.