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• Whether the retaining the area within the city limits would result in an adverse impact to the city, including adverse fiscal impacts; • Whether disannexation would present an opportunity for incorporation of the area into a new municipality or for an existing municipality to annex the area; • Whether the area is populated with residential development; and • Whether the area is proposed for long-term development. See Exhibit B, pp. 15-16 for the full text of the policy.2 Each of these criteria also contains a requirement relating to the provision of city services. In this instance, the Council may consider the property for disannexation because (a) the area proposed to be disannexed comprises more that an individual parcel (although the fact that it is only four parcels makes this point arguable given the language of the policy); (2) the area is not populated with residential development (criteria #6); and (3) disannexation of the area will not create any keyholes or islands. The primary issue with disannexation of the proposed area as far as the city is concerned is that of lost potential property tax revenue. Dr. Kraft's parcel is now (and will be when he builds his new clinic) developed. The real question is the possibility of future development on the Cobb and Morrison properties. At present, the Cobb properties are subject to an Ag exemption that make their taxable value very low. Staff is concerned that with expansion of HWY 271 and other development in the area, these properties may become attractive for either residential or commercial development which would greatly increase their taxable values. In any event, it must be remembered that once disannexed, given current annexation law, it would be nearly impossible to reannex the property, and the city would be giving up all future property taxes forever. On February 10, 2025, Council directed me to bring back a resolution to institute disannexation proceedings, which will not obligate Council to ultimately approve a disannexation ordinance. As set out in the resolution before you, the following procedure will need to be followed: February 24, 2025—City Council Meeting—The City Council will discuss and approve the resolution instituting disannexation proceedings. The entire process must be complete within 90 days. February 24-28, 2025—The city attorney will send out notices to other taxing entities, service providers, and railroads as necessary, which must be done by 30 days before the first of two public hearings. April 3, 2025—Publish notice of first and second public hearing in the Paris News (publication of notices of hearing must be between the 20th and the 10th day out from each public hearing; because of the way the calendar falls, we can do a single publication for both which saves on publication fees). 2 The policy for disannexation is simply the inverse of the policy for annexation. Other than the prohibitions against keyholes and islands, the policy on disannexation is sparse. Likewise, state law regarding disannexation is simply that the procedures used in disannexing property must not conflict with the procedures for annexing property.