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23-Annexation/Disannexation Policymemo�andum TO: Mayor & Council FROM: John Godwin, City Manager SUBJECT: ANNEXATION/DISANNEXATION POLICY DATE: May 6, 2013 BACKGROUND: The city has received a number of requests recently for disannexations, three of which have been approved in the last twelve months, and three more on which no final action has yet been taken. In order to help the city council address both sides of this single coin, and to help ensure the city's property values and boundaries are adequately protected, an overall policy can help make sure decisions are rational and consistent from one case to the next. In order to clarify one recurring claim, I want to again explain the inaccuracy of the notion that city residents are paying for services that they are not receiving. Residents often think that because they pay property taxes that those funds help pay for provision of water and sewer services. That is not in any way correct. Property taxes in Paris go to one of two funds — General or Debt Service. Taxes pay for police, fire, administration, finance, EMS, library, and parks. The only way a resident is paying taxes for something he/she is not getting is if one of those services is denied. If a resident does not get water or sewer, that resident does not get a water of sewer bill, so they are not paying for it. No taac money goes to the Utilities Fund. STATUS OF ISSUE: The attached policy is rather lengthy and detailed. The first, larger, two parts set the stage for why a city should annex from time to time, and why protection of its boundaries is one of the very key functions of city government. It also describes Texas cities' authority within their extra-territorial jurisdictions. Part IV of the policy seeks to actually lay out a specific, quantifiable, list of reasons and qualifications to annex (or obversely, to disannex) parcels in and near the city limit. BUDGET: Annexations typically will generate additional revenue through ad valorem taxes; disannexations reduce ad valorem taxes. RECOMMENDATION: Approve attached policy, with any revisions agreed upon. �� 55 . .. 5 s TABLE OF CONTENTS PART I: CONTEXT & AUTHORITY Section 1. Introduction Section 2. The Context of the Texas Local Government Code (TLGC) Section 3. Annexation Authority and Procedures Section 4. Provisions Regarding Disannexation Section 5. Annexation under Senate Bill 89 Section 6. Municipal Regulation of the Extraterritorial Jurisdiction (ETJ) Section 7. Annexation Policy Considerations Section 8. Disannexation Policy Considerations PART II: PURPOSE & INTENT PART III: DEFINITIONS PART IV: CRITERIA & PROCEDURES _ _ 5'7 1 PART I: CONTEXT & AUTHORITY Section 1. Introduction In many parts of the U.S., county governments are considered to be "caretakers" of the unincorporated areas, under the presumption that at some time in the future, they will be included within municipal boundaries. Nevertheless, when cities consider annexation and/or disannexation of properties, there are fundamental considerations that should be applied prior to those decisions. This report attempts to address these considerations. Section 2: The Context of the Texas Local Government Code 1. Annexation Procedural Methods: Under 1999's SB 89, there are two basic annexation procedural methods, each of which is based either on the inclusion or exclusion of an area in a city's annexation plan: (A) Annexation of an area that is exempt from the annexation plan requirement; and (B) Annexation after Dec. 31, 2002 of area included in an annexation plan. If an area is not exempt, a city must place it in an annexation plan and wait three years to annex the area under the procedures established by Chapter 43, subchapter C, "Annexation Procedures for Areas Annexed Under Municipal Annexation Plan." 2. The Annexation Plan: SB 89 required that every city in Texas adopt an annexation plan that became effective no later than December 1, 1999. The plan must identify annexations that will occur beginning three years after the date the plan is adopted. However, certain kinds of areas are exempt from the plan requirement. For example, if an area "contains fewer than 100 separate tracts of land on which one or more residential dwellings are located on each tract," the area is not required to be placed in an annexation plan. Also, if the land is annexed by petition of area landowners or voters, the area is not required to be in a plan. Further, a city can amend the plan to include new areas, but the city may not annex these areas until three years after said area is included in the plan. There are also time limitations regarding annexing property if an area is removed from the plan and/or placed back into the plan. There 2 are further notice requirements before the 90th day after the city adopts or amends the annexation plan. Section 3: Annexation Authority and Procedures 1. Annexation Powers: (A) Provisions Re�ardin� Annexation of a Home-Rule City. Paris is a home rule city, and a home rule municipality can take the following actions if provided by the city's charter: (I) Fix the boundaries of the municipality; (II) Extend the boundaries of the municipality and annex area adjacent to it; and (III) Exchange area with other municipalities. 2. Annexation Procedures: (A) A municipality may annex area only in its extraterritorial jurisdiction (ETJ) unless the municipality owns the area (TLGC, Sec.43.051). (B) There are annexation hearing requirements. (C) The annexation of an area must be completed within 90 days after the date the governing body institutes the annexation proceedings or those proceedings are void. (D) A city cannot annex a publicly or privately owned area, including a strip of area that follows the course of a road, highway, river, stream, or creek, unless the width of the area at its narrowest point is at least 1,000 feet. (There are several situations where this requirement does not apply. TLGC, Sec.43.054). (E) In any calendar year, a municipality cannot annex a total greater than ten percent (10%) of the incorporated area of that municipality as of January 1 of that year, plus any amount of area carried over to that year (under subSection (b) of Sec. 43.055, TLGC). An annexed area is not included in this calculation if annexed at the request of the property owners of the area, or if the area is owned by the municipality, a county, the state, or the federal government and used for a public purpose. Further, a municipality carrying over an allocation cannot annex in a calendar year, a total area greater than thirty (30) percent of the incorporated area of the municipality as of January 1 of that year. (F) Service Plans to Annexed Areas: 3 _. 59 (I) Within a specified time limit, a city that is proposing an annexation must complete a service plan that provides for the extension of full municipal services to the area to be annexed. (Sec.43.056). (II) Said full municipal services must be provided in the annexed area no later than 2% years after the effective date of the annexation. (There is opportunity for extension of certain services, but no later than 4% years after the date of the annexation.) (III) However, under this program if a city provides any of the following services within its corporate limits prior to annexation, the city must provide those services in the area proposed for annexation on the effective date of the annexation of the area: (a) police protection; (b) fire; (c) emergency medical services; (d) solid waste collection (except as certain conditions require); (e) operation and maintenance of water and wastewater facilities in the annexed area that are not within the service area of another water or wastewater utility (as defined by CCNs); (f) operation and maintenance of roads and streets, including road and street lighting; (g) operation and maintenance of parks, playgrounds, and swimming pools, and (h) operation and maintenance of any other publicly owned facility, building, or service. The service plan may be amended to extend the period of construction if said construction is occurring as quickly as possible. There are also other criteria regarding provision of services in the annexed area based on the existing level of service in the area to be annexed, etc. The proposed service plan must be made available for public inspection and explained to the inhabitants of the area at the public hearings held under Sec. 43.0561. A service plan is valid for ten years; renewal of the service plan is at the discretion of the municipality. There are also other opportunities for citizens to enforce the service plan. Section 4: Provisions Re�ardin� Disannexation 1. Disannexation for Failure to Provide Services (Sec. 43. 141): (A) A majority of the qualified voters of an annexed area may petition the governing body of the municipality to disannex the area if the municipality fails or refuses to provide services or to cause services to be provided to the area within the period specified by Section 43.056 or by the service plan prepared for the area under that Section. 4 f � (B) If the governing body fails or refuses to disannex the area within 60 days after the date of the receipt of the petition, any one or more of the signers of the petition may bring a cause of action in a district court of the county in which the area is principally located to request that the area be disannexed. On the filing of an answer by the governing body, and on application of either party, the case shall be advanced and heard without further delay in accordance with the Texas Rules of Civil Procedure. The district court shall enter an order disannexing the area if the court finds that a valid petition was filed with the municipality and that the municipality failed to perform its obligations in accordance with the service plan or failed to perform in good faith. (C) If the area is disannexed under this Section, it may not be annexed again within 10 years after the date of the disannexation. 2. Disannexation Accordin� to Municipal Charter in Home-Rule Municipalitv (Sec. 43.142) A home-rule municipality such as Paris may disannex an area in the municipality according to rules as may be provided by the charter of the municipality and not inconsistent with the procedural rules prescribed by this chapter. 3. Width Requirement for Disannexation (Sect. 43-147) (A) A municipality disannexing a road or highway shall also disannex a strip of area that is equal in size to the minimum area that the municipality is required to annex in order to comply with the width requirements of Sec. 43.054 unless such disannexation is undertaken with the mutual agreement of the county government and the municipality. The strip of area to be disannexed must be adjacent to either side of the road or highway, and follow the course of the road or highway. 4. Requirements Re�arding Federal and State Approvals and Notices All annexation ordinances and information relating to the annexation must be submitted for approval of the U.S. Department of Justice. Also, the Texas Secretary of State must be notified of any annexation/disannexation. Certain other agencies are also required to be notified if a city changes its boundaries. Section 5. Annexation Under Senate Bill 89 The following is an outline only of the procedures that now must be followed when annexing territory: 1. Adopt an annexation plan. (Sec. 43.052 (c)) 2. Determine whether the municipality may annex the territory. (Sec. 43.0545) 3. Determine whether territory should be included in the annexation plan. (Sec. 43.052 (h)). 4. Comply with the notice requirements. 5. Provide written notice to school districts. 6. Prepare an inventory of services and facilities. 7. Prepare a service plan. S. Address hearing requirements. 5 �- 61 9. Submit annexations to the U.S. Justice Department for preclearance not later than the 90tn day before the effective date of the annexation or the earliest date permitted under federal law (Sec.43.906 (a)). Section 6. Municipal Re�ulation of the Extraterritorial Jurisdiction (ETJ) The policy purpose regarding the ETJ is stated in Sec. 42.001 of the TLGC. Chapters 42 and 43 of the TLGC address the Municipal Annexation Act. The City of Paris' population has, under Sec. 42.021 a "number of inhabitants" between 25,000-49,999, "and therefore the extent of (its) extraterritorial jurisdiction" is two (2) miles. Sec. 42.023 states: "The extraterritorial jurisdiction of a municipality may not be reduced unless the governing body of the municipality gives its written consent by ordinance or resolution, except in cases of judicial apportionment of overlapping extraterritorial jurisdiction under Sect. 42.901." Section 42.022 discusses the expansion of the ETJ. The code also addresses the very rare issue of overlapping ET1s. 1. Municipal Re�ulations Within the ETJ Texas cities do not have the statutory ability to zone property within their ETJ; however, Sec. 212.003 states that a city's subdivision regulations are applicable within its ETJ if that municipality has extended its subdivision regulations into the ETJ by ordinance. (Note: Paris' Subdivision Regulations states that said regulations also apply in the ETJ.) A municipality may regulate subdivisions and approve plats for tracts of land located outside its city limits and outside its ETJ if there is an interlocal agreement providing for such regulation and approval (Sec. 242.001 (e)). If a property lies within the ETJ of more than one municipality, the municipality with the larger population has the responsibility for approval (Sec. 212.007 (a)). 2. Subdivisions, HB 1445. and the ETJ House Bill 1445 was adopted by the 2001 Session of the Texas Legislature and provided for an agreement between a county and a municipality to regulate a subdivision in the ETJ of a municipality. H.B. 1445, now in Chapter 242 of the Texas Local Government Code, required that a city and county shall enter into a written agreement that identifies the governmental entity authorized to regulate subdivision plats and approve related permits in the ETJ (Sec. 242.001 (a)). For a municipality existing on September 1, 2001, the municipality and county were required to enter into a written agreement on or before April 1, 2002 (Sec. 242.001 (c). Texas municipalities have four options under H.B. 1445: (1) the county will possess no authority over plats and all review will be done by the city; (2) the city possesses no authority over plats and all review will be done by the county; (3) the city and county will divide the ETJ geographically and each will delineate in which area it possesses authority over plats; and (4) the city and county jointly review plats under their respective authority, but there must be one filing fee, one office to file plats, and one uniform and consistent set of plat regulations. 6 �_ 6� 3. HB 1197 — A�reements with Landowners This bill added Subchapter G, entitled "Agreement Governing Certain Land in a Municipality's Extraterritorial Jurisdiction," to Chapter 212 of the TLGC "Municipal Regulation of Subdivisions and Property Development." The bill provides that a city council can enter into a written contract with an owner of land in the city's ETJ to (1) guarantee the land's immunity from annexation for a period of up to fifteen years; (2) extend certain aspects of the city's land use and environmental authority over the land; (3) authorize enforcement of land use regulations other than those that apply within the city; (4) provide for infrastructure for the land; and (5) provide for the annexation of the land as a whole or in parts and to provide for the terms of annexation, if annexation is agreed to by the parties. 4. Development Plats Sections 212.041-212.050 of the TLGC provide authority for municipalities to accept development plats in the ETJ. A development plat, however, should not be confused with a subdivision plat. The authority to regulate subdivisions is found in Subchapter A of Chapter 212 whereas the authority to regulate property development through the use of plats is found in Subchapter B of Chapter 212 of the TLGC. A city must choose by ordinance to be covered by Subchapter B(or the law codified by that subchapter) (TLGC Sec. 212.041 and if a municipality so chooses, any person who requests development of a tract of land in the corporate limits of ETJ must prepare a development plat. "Development," for purposes of Subchapter B, means "the new construction or the enlargement of any exterior dimension of any building, structure, or improvement." Subchapter B expressly provides that it "does not authorize a municipality to require municipal building permits or otherwise enforce the municipality's building code in its extraterritorial jurisdiction." (Sec. 212.049.) 5. Si�n Re�ulations Chapter 216 of the Texas Local Government Code addresses the relocation, reconstruction or removal of a sign in the ETJ. Specifically, Section 216.003 allows municipalities to "require the relocation, reconstruction, or removal of any sign within its corporate limits, or extraterritorial jurisdiction," subject to the detailed regulatory procedure included in Sec. 216.0035 (creation of municipal sign control board, compensation requirements, exceptions and appeal provisions). A home-rule municipality has other authority to regulate signs. Home rule cities may license, regulate, control, or prohibit the erection of signs or billboards by charter or ordinance in compliance with Chapter 216 of TLGC, (Sec 216.901.) Municipalities may regulate the location proximity, size, separation, setback and height provisions so long as the ordinance reflects a reasonable relationship to the public health, safety or general welfare. A home-rule city may extend the provisions of its outdoor sign regulatory ordinance and enforce the ordinance within its ETJ. In lieu of regulatory ordinances, however, home-rule cities may allow the Texas Transportation Commission to regulate outdoor signs in the ET1 by filing a written notice with the Commission. If a municipality extends its outdoor sign ordinance within 7 63 its ETJ, the municipal ordinance supersedes the regulations imposed by or adopted by the Commission. (Sec. 216.902.) 6. Industrial Districts and Planned Unit Development Districts Section 42.044 of the TLGC allows a municipality to designate a part of its ETJ as an industrial district and treat that area in the manner considered to be in the best interest of the city, including making written contracts with the owner of the land regarding annexation and regulations. Chapter 42 of the TLGC also discusses planned unit development districts in the ETJ. The governing body of a municipality that has disannexed territory previously annexed for limited purposes may designate an area within its ETJ as a planned unit development district by written agreement with the owner of the land. The planned unit development district shall contain no fewer than 250 acres. (See TLGC Sec. 42.046.) 7. Impact Fees Impact fees, under Ch. 395 of the TLGC, may be applied in the ETJ; however, impact fees for roadway elements cannot be imposed in the ETJ. Paris does not collect such fees at this time. 8. Municipal Draina�e Utilitv Svstems Under Sec. 402.044 (8) of the TLGC, the boundaries of a city's drainage system service area may be extended within the ETJ that contribute overland flow into the watershed of the city. Paris has no such system at this time. 9. The 5,000 Foot "Nuisance Zone" Section 217.042 of the TLGC states as follows: (A) The municipality may define and prohibit any nuisance within the limits of the municipality and within 5,000 feet outside the limits, without regard to its ETJ. (B) The municipality may enforce all ordinances necessary to prevent and summarily abate and remove a nuisance. If a home-rule city wishes to enforce these activities extraterritorially, city ordinances must be amended to reflect the extraterritorial application of the ordinances. Also, a home-rule city cannot just state that all conduct is a nuisance and extend such nuisance regulations 5,000 feet from the city's boundaries. A"nuisance" is anything that works injury, harm or prejudice to an individual or the public, or which causes a well-founded apprehension of danger. A nuisance obstructs, impairs or destroys the reasonable, peaceful and comfortable use of property. 10. Economic Development HB 918, effective May 17, 2005, amended Section 380.001(a) of the TLGC to include a municipality's ETJ and areas annexed for limited purposes as part of the municipality for purposes of establishing economic development programs. SB 466, effective September 1, 2005, amended a number of Sections of chapter 377 of the TLGC relating to municipal 8 64 development districts. The amendments allow any municipality to create a municipal develop- ment district, and allow that a municipal development district may include, in whole or in part, a municipality's ETJ. 11. The "SOB" Zone Chapter 243 of the TLGC allows city and county regulation of sexually oriented businesses ("SOBs"). Most municipal ordinances that regulate SOBs provide distance requirements; i.e., requirements that a SOB may not be located within a certain number of feet of a church, school, residentially-zoned area, day care center or other sexually oriented business. (Sec. 243.006 (a)). Section 243.003 (b) of the TLGC specifically, states that "[a]regulation adopted by a municipality applies only inside the municipality's corporate limits." However, after discussion of case law from other states, the Texas Attorney General concluded that even though Section 243.003 of the TLGC does not give extraterritorial effect to an SOB ordinance, Section 243.006(a)(2) of the TLGC nonetheless may apply. "A city may apply a municipal ordinance to prohibit a sexually oriented business within a specified distance of a school, church, or other entity covered by Section 243.006 (a) (2) of the TLGC even though that entity is not within the corporate limits of the city in question, so long as the sexually oriented business is within those limits. Such application does not violate the statutory requirement that the ordinance only apply in the city's corporate limits." Therefore, the distance requirements contained in local SOB ordinances may be enforced, even if the underlying SOB ordinance has no extraterritorial effect. 9 65 PART II: PURPOSE & INTENT The City of Paris seeks to annex property within its extraterritorial jurisdiction for the following purposes: • To promote orderly growth by facilitating long-range planning for the provision of municipal services and by applying appropriate land use regulations, development standards, property maintenance standards, fire codes, construction codes, and environmental regulations. • To diversify the economic base and create job opportunities by annexing property for commercial and industrial development. To fulfill these purposes, the city has formulated this annexation policy in order to: • Provide the city council with more specific, objective, and prescriptive guidance for making annexation decisions. • Enable the city to be more proactive in identifying areas for annexation by providing for a regularly updated annexation program. • Provide for meaningful public participation in formulating the annexation program as part of the regular update of the city's comprehensive plan. Issues that should be considered include: . Physical Boundaries Proposed annexations should acknowledge, so far as possible, existing or proposed physical features which can constitute boundaries between different areas. For example, natural features such as rivers, streams, or pronounced topographic changes, and man-made elements like railroads and existing or planned expressways and freeways, can be appropriate boundaries between the annexation areas of two or more communities. • Le�al and Administrative Boundaries Invisible boundaries are sometimes just as important as the strong visible barriers just described. County lines are permanent political boundaries that can serve as appropriate annexation limits. Though existing property lines, easements, corporate limits and the administrative boundaries of park districts, fire protection districts, and elementary and high school districts, can and do change, they should be respected as far as possible to avoid confused jurisdictions and administrative problems. • Natural Draina�e Divides Because of the high capital costs associated with sanitary sewer installations (as well as, of course, other utility installations), municipalities should typically annex within natural drainage basins to achieve the economies of gravity sewer flow. In areas, however, where, for example, a countywide sewer system has been proposed, drainage divides are less important as a guideline for annexation boundaries. ` - 66 so • Ability to Provide Services and Facilities Properties or an area should be annexed only to a municipality willing and able to provide fire and police protection and refuse collection immediately and sanitary sewer and water service within a reasonable period of time. Provision of sewer and water service should, however, not be at the expense of areas already within the municipality that still do not have these services. • Simplification of Municipal Boundaries Annexations should be encouraged and enhanced that have the effect of consolidating a community's corporate area and reducing the irregularities that previous annexations may have added to the corporate limits. "Squaring off" the municipal limits to create an easily recog- nizable shape can enhance the image that residents have of their municipality and create a more logical shape for administering services. Also, more logical and easily definable configurations of annexed property also provide the development community with opportunities oftentimes to create developments that are more efficient and aesthetically pleasing. Annexation lines should be drawn so as to avoid ribbons or odd pieces of unincorporated land between communities. It is preferable for municipalities to abut and have a common boundary rather than be separated by a small unincorporated area. • Cost-Revenue Analvsis The deficit of income to be realized from the annexed area against the expenses to the municipality in serving it should be reasonable. Cost-revenue analysis, a topic in itself and beyond the scope of this report, can compare the annexation area's potential revenue base with the costs of furnishing necessary services. For example, consideration should be given to a situation whereby a city annexes a residential subdivision that was not built to that city's subdivision standards. In the long-run, therefore, the current citizens within the annexing municipality may have to pay for upgrading said potentially annexed subdivision. • Economic Development In conjunction with cost-benefit analysis, Paris can use annexation, where appropriate, as a tool to stimulate local and regional economic growth and implement sound, long-range capital improvement programming. A sub-tool for this kind of economic development could be, for example, public-private partnerships and investments. • Comprehensive Plans and Zonin� District Maps Texas does not allow zoning of unincorporated areas. Therefore, if property is annexed, it should be zoned as soon as possible to be in conformance with the annexing municipalities' future land use plan within its comprehensive plan. If such zoning does not occur in a timely manner, the municipality runs the risk of having its recently annexed area developed with land uses that may be incompatible with that city's land use plans, growth-goals, and policies. • Parks, Recreation, and Open Space Oftentimes, parks, recreation, and open space plans can be more fully implemented if linkages can be made to other parks elements, to increase citizen use, city design, and aesthetic features. In certain instances, therefore, it could be an important factor to annex areas outside of Paris that could enhance trail systems, as well as use environmental resources that are presumably outside the city (e.g., flood plan and/or other environmentally sensitive, archeological and/or historical sites or interesting areas). 11 _ _ 6'7 • Conti�uitv• Territory to be annexed must be contiguous to the annexing municipality. Strip or tentacle annexations along roads or easements, while held as legal in some cases, should be avoided because oftentimes such annexations do not allow for area design and/or depth of property to create well-designed and functioning developments of various types of land uses. • Density. Territory to be annexed should have a population density sufficient to warrant the extension of municipal services. The cost of providing services and utilities should not unduly burden the tax rate of a potential annexing body. As stated, what is urban should be municipal. Development of a sufficient intensity to require municipal services (public water, sewerage, etc.) should become part of some municipality. In addition, areas not yet possessing urban character that are in the path of impending urban development can also be good candidates for annexation. • Who Should Annex? After it has been determined that an area is suitable for annexation, a second question often arises in many parts of the country where several municipalities are in close proximity to each other. That is, which of two or three potential annexing bodies should annex it? Annexation of an unincorporated area by one municipality or another can have many important physical, social, and financial consequences for the area annexed as well as for the annexing municipality. Four overall general goals that good annexations satisfy are: • Communitv Identitv. Annexations should encourage feelings of community cohesive-ness. Businesses and residents should have a sense of belonging to the municipality within whose corporate limits they live and/or work. • Economv. Annexations should promote economy by minimizing the costs of providing services to new areas and by providing opportunities to expand the local tax base. • Convenience. Existing and future residents and/or businesses within annexation areas should find it convenient to use the public and private services and facilities provided by the annexing municipality. • Simplicitv. Annexation boundaries should be regular and logical to facilitate administration of services and further a sense of community identity. 12 . • • PART III: DEFINITIONS Annexation — The legal process by which a city extends its boundaries. A city may annex property only within its extraterritorial jurisdiction, unless the city owns the area. The city enforces all ordinances, provides services as provided by law, and assesses property taxes and sales taxes. Annexation Plan — A document required by Texas Local Government Code, Section 43.052, identifying certain kinds of areas that a city intends to annex. • The plan must identify any areas with 100 or more separate lots or tracts of land containing residential dwellings that the city intends to annex, unless more than 50 percent of the property owners request annexation. • The plan may also identify other areas. • Areas that are identified in the plan may only be annexed three years after the plan is adopted. Annexation Policy — A set of guidelines to assist in making annexation and disannexation decisions. Annexation Program — A regularly updated document identifying areas that the city wishes to consider for initiation of annexation during the succeeding five-year period. The annexation program expresses the city's intent to consider specific areas for annexation, but is not legally binding. Inclusion of an area in the program does not obligate the city to annex that area, nor does exclusion of an area from the program prevent the city from annexing the area. Disannexation —The legal process by which a city removes an area from its boundaries. Enclave — An area within the city's extraterritorial jurisdiction that is surrounded, or very nearly surrounded, by the corporate limits of the City of Paris and/or the corporate limits or extra-territorial jurisdiction of other municipalities. Extraordinary Economic Development Project — A commercial or industrial project that is eligible for property tax abatement under the city's tax abatement policy. Extraterritorial Jurisdiction (ETJ) — Unincorporated area extending generally two miles from the city limit, excluding other incorporated municipalities and their ETJs, in which the city has the authority to annex property. Full Municipal Services — Services provided by an annexing municipality within its full-purpose boundaries, including water and wastewater services and excluding gas or electrical service. The City of Paris provides the following services, including but not limited to: fire and police protection; emergency medical services; access to water and wastewater services unless such services are provided by another utility; solid waste collection; operation and maintenance of parks, publicly-owned facilities, and streets; library services; drainage and storm sewer maintenance; enforcement of environmental health, zoning and subdivision ordinances; enforcement of building and construction codes; and inspection services. Growth Center — An area that contains, or has the capacity to contain, compact, higher intensity urban land uses, as designated by the city council in the city's comprehensive plan. There are two types of growth centers: 13 69 • Mixed-Use Growth Centers — A highly urbanized area that has many characteristics of a downtown: a concentration of jobs, housing units, schools, parks, and other public facilities, public transportation hubs, pedestrian activity and a sense of place. This mix of uses supports sustainable development, which seeks to balance access, mobility, affordability, community cohesion, and environmental quality. • Industrial Growth Center — An area consisting primarily of industrial and/or commercial uses, with a high concentration of jobs, mostly industrial in nature. Other related and supporting uses include office space and services. Unlike mixed-use growth centers, residential uses are generally discouraged within industrial growth centers. Infrastructure — Facilities necessary to provide city services, usually referring to physical assets such as streets and utility lines. Long-Term Development — Planned construction of residential, commercial, and/or industrial uses that is anticipated to occur beyond a three-year timeframe. Planning Study — A document prepared by a municipality, pursuant to Section 43.123 of the Texas Local Government Code, prior to annexing an area for limited purposes, which identifies EXHIBIT A projected development; the need for annexation; the impact of annexation on surrounding residents, landowners, and businesses; and the proposed zoning of the area. Protest Petition — A statement expressing opposition to a proposed city-initiated annexation and containing the signatures of property owners representing 50 percent or more of the parcels within the territory to be annexed and 50 percent or more of the land area within that territory. Service Plan — A document adopted by the city council, pursuant to Sections 43.056 and 43.065 of the Texas Local Government Code, describing the schedule for a municipality to provide full municipal services to an area annexed for full purposes. On the effective date of annexation, a municipality must provide: police and fire protection; emergency medical services; solid waste collection; operation and maintenance of water and wastewater facilities in the area that are not within the service area of another water or wastewater facility; and operation and maintenance of roads and streets (including lighting), parks, playgrounds, swimming pools and other publicly-owned facilities, buildings or services if those services are provided by the municipality within its corporate boundaries. A municipality must provide full municipal services, which means all services provided within the city including water and wastewater services, within 2%2 years after annexation but may extend the deadline to 4% years after annexation for services that cannot reasonably be provided within 2%z years. Urban Development — Development requiring water, wastewater, and other municipal services to promote public health, safety and welfare. It may include residential development with a density equal to or greater than one dwelling unit per acre, as well as commercial and industrial development. 14 _ _ � o PART IV: CRITERIA & PROCEDURES A. Annexation The city will consider full-purpose annexation of any area within its extraterritorial jurisdiction if and only if the area meets one or more of the following seven criteria: 1. Enclave: The area meets both of the following conditions: a. The area is an enclave and the city and its citizens would benefit from a logical city limit boundary that provides for the orderly and efficient provision of services; and b. The city is able to provide municipal services within 4% years of annexation in accordance with state law, without negatively impacting service provision within the city. 2. Urban Development: The area meets all three of the following conditions: a. The city is aware of or anticipates development activity of an urban nature in the area; and b. The city is able to provide municipal services within 4% years of annexation in accordance with state law, without negatively impacting service provision within the city; and c. The city has determined through an appropriate analysis of prospective revenues and expenditures that cumulative revenues will exceed cumulative expenditures for each affected budget fund over the 10-year period immediately following annexation, or over a longer period as appropriate for long-term development. 3. Growth Center: The area meets all three of the following conditions: a. The area encompasses a designated growth center and thus requires urban services to develop as planned; and b. The city is able to provide municipal services within 4%2 years of annexation in accordance with state law, without negatively impacting service provision within the city. c. The city has determined through an appropriate analysis of prospective revenues and expenditures that cumulative revenues will exceed cumulative expenditures for each affected budget fund over the 10-year period immediately following annexation, or over a longer period as appropriate for long-term development. 4. Adverse Impact: The area meets both of the following conditions: a. Without annexation, potential development activity is likely to have an adverse fiscal or environmental impact on the city due to unregulated land uses and the city's inability to enforce development standards, building codes, and/or environmental regulations; and 15 �1 b. The City is able to provide municipal services within 4%2 years of annexation in accordance with state law, without negatively impacting service provision within the city. 5. Option to Expand: The area meets both of the following conditions: a. Without annexation, interested parties may incorporate one or more separate municipalities or take other legal actions that might be detrimental to the city's orderly growth. b. The City is able to provide municipal services within 4%2 years of annexation in accordance with state law, without negatively impacting service provision within the city. 6. Populated Area: The area contains 100 or more separate lots or tracts of land containing residential dwellings and thus must be included in the municipal annexation plan three years prior to full-purpose annexation per state law. 7. Lon�-Term Development: The area is proposed for long-term development. The city will determine the feasibility of entering into an agreement with the property owner(s) for annexation. The agreement may provide for the property to be annexed for full purposes in phases. In accordance with Sections 43.056 and 43.065 of the Texas Local Government Code, the Paris Community Development Department shall prepare a service plan that provides for the extension of full municipal services to each area to be annexed for full purposes. The department shall prepare the service plan after the city council establishes the annexation timetable and shall make the plan available to the public for review and comment in advance of required public hearings. The city shall adopt the service plan by ordinance at the time the city annexes the area. B. General Provisions The following provisions apply to all proposed annexations: 1. As a prerequisite for any proposed annexation, the City Manager shall certify that the proposed annexation would have no adverse effect upon the provision of municipal services within the City. 2. The City will annex any rights-of-way that are adjacent to and provide access to annexed property. C. Disannexation Factors to be considered regarding disannexation are whether the issues identified in the previous sections have been effectively addressed or implemented. Therefore, if property that is already annexed has created problems for Paris because the original reason(s) and or situation(s) that generated the annexation in the first place do not satisfy positive criteria for annexation, then said properties should be considered for disannexation. Again, as with annexation, various weights should be given to the factors involved when evaluating any specific area for disannexation. The City will consider disannexation of any area within its corporate limits if so requested by a majority of the property owners(s) and if the area fails to meet at least one of the above seven criteria, and if: The proposed disannexation is part of an identifiable, logical whole (versus individual parcels) which neither creates "holes" inside the existing corporate city limits, nor forces any other area of the city outside the revised city limit boundary line ("islands" outside the revised lines). 16 / �