Alternatives to Incorporation. Presented to the DeKalb Operations Task Force September 2014

Transcription

1 Alternatives to Incorporation Presented to the DeKalb Operations Task Force September 2014

2 Section 1 Alternatives to Incorporation and Annexation Section 2 - Methods for a more orderly process of incorporation and annexation Section 3 - Decrease the negative financial impact to the County Section 4 Takeaways from Others Experience and Possible Recommendations 2

3 Alternatives Motivation for incorporation/annexation A desire for a different mix of services Options Special Service Districts Community Improvement Districts Residential Improvement Districts Police Partnerships 3

4 Alternatives Special Service Districts Local government entity designed to provide services to a specific geographic area DeKalb County has several of these Fire, unincorporated area, and one for each city Used as a means of targeting/tailoring taxes and services to particular areas within the county 4

5 Community Improvement Districts Alternatives CIDs are self taxing districts Imposes taxes only on businesses CID members control how funds are spent Tax revenue used for capital projects or other amenities DeKalb has several CIDs 5

6 Residential Improvement Districts Alternatives Same concept as a CID but includes residential properties New concept but Missouri and Pennsylvania have enabling legislation but no entities to date Could be a method of allowing a different mix of services and more local control without fully incorporating Would require special/new legislation in Georgia 6

7 Police Partnerships Alternatives Adaptation of King County Sheriff s office New municipalities contract with the sheriff s office for police services Each city has its own police chief who is selected by the city Police chief answers to the city commission Cost of service is determined via inter-local agreement with all participating cities negotiating as a single group 7

8 Motivation for incorporation/annexation More control over planning and zoning Alternatives Options Joint Planning Commissions Extraterritorial Jurisdictions (ETJ) 8

9 Joint Planning Commissions Alternatives Albany-Dougherty County Has a joint planning commission with members from the city of Albany and from the County Glynn County has two planning districts for the unincorporated areas Island Planning Commission & Mainland Planning Commission Coordinate efforts and plans 9

10 Extraterritorial Jurisdiction Alternatives The ability of a municipality to extend its zoning authority beyond the immediate municipal boundaries Size of extraterritorial zoning authority may be based on population Authority applies to zoning and subdivision ordinances, housing and building codes, in addition to regulations for some other types of property 10

11 Alternatives Motivation for incorporation/annexation Protection from Annexation Options Charter Townships Incorporation 11

12 Charter Townships and Incorporation Alternatives Charter Townships Found in Michigan Special Class of township where annexation options are more limited, but not impossible Can be of any size population Incorporation Best and most commonly used defense against further annexations 12

13 Encouraging a more orderly process for incorporations and annexations Options Spheres of Influence Boundary Review Boards Local Agency Formation Commissions Municipal Advisory Committees Joint Legislative Committee on Municipal Incorporations 13

14 Spheres of Influence(NC & CA) Incorporation Process Used in several states such as North Carolina and California These areas represent the farthest potential boundary a city may reach at a point in the future Spheres represent boundaries across which other cities may not annex land In Mecklenburg County, NC the SOIs were originally negotiated among cities in the 1980s and expected to last for 30 years No set timetable on when land within SOIs must be annexed Residents in this area do not vote in municipal elections or pay municipal taxes 14

15 Boundary Review Boards(WA) Incorporation Process Used in Washington State Purpose is to monitor municipal and special district boundary changes Exist in 17 counties but are independent of county and city governments Provided for in state legislation Board members are appointed to 4 year terms by the Governor, county legislative body, mayors of the cities Board rulings are final unless appealed to the Superior Court 15

16 Boundary Review Board Process Incorporation Process Notice of Intent is sent to the Boundary Review Board (BRB) Public notice of date, time and place of BRB hearing on proposed action is required Upon completion of hearing, BRB may: o Approve proposal as submitted o Modify proposal (add/delete territory, subject to guidelines) o Disapprove proposal Proposals not disapproved by BRB must be presented to appropriate public body, and a vote of the citizens, if required 16

17 Factors to be considered by the BRB Incorporation Process Specified in RCW to include Population and Territory - Population density, land area and land use, comprehensive plans and zoning, applicable service agreements, applicable interlocal agreements between the county and the cities, per capita assessed valuation, natural boundaries and proximity to other populated areas, the likelihood of significant growth in the area and in the adjacent incorporated and unincorporated areas during the next 10 years, location and most desirable future locations of community facilities Municipal Services Need for municipal services, effect of ordinances on existing uses, present cost and adequacy of governmental services and controls in the area, prospects of, and future needs for, governmental services from other sources, the effect of proposal on cost and adequacy of services in area and adjacent area, the effect of finances, debt structure and contractual obligations on all affected governmental units The effect of the proposal on adjacent areas, on mutual economic and social interests and on the local government structure of the county 17

18 Feasibility Studies in Washington State Incorporation Process Not statutorily required by law but not uncommon to have one done Components of the study include - Background on the proposed city Current services provided to the community Operations of the new city Revenue estimates Proposed expenditures Land use policies Provision of services by new city and impacts upon current service providers Analysis of alternatives 18

19 Local Agency Formation Commissions(CA) Incorporation Process Used in California since early 1960s Each county has a LAFCO The authority of the county LAFCO comes from the state legislature. They are the Legislature s agent for local boundaries. They are not county or municipal entities Membership on the LAFCO is by appointment Usually 5 members consisting of 2 county members, 2 city mayors or city council members and 1 public citizen. Many also include special service district representation Funding for the LAFCOs is split between the cities and the county and any special districts. LAFCOs also charge a fee for incorporation and annexation reviews. 19

20 LAFCO Process for Incorporation and Annexation Initiating the Incorporation Process Incorporation Process Application to LAFCO LAFCO Staff Review LAFCO Commission Hearing/Request for Reconsideration/Protest Hearing Election 20

21 Incorporation and Annexation Authority(FL) Incorporation Process Miami-Dade Board of County Commissioners (BOCC) has approval authority for incorporation and annexation issues within the county. Authority shifted from State Legislature in 1957 Miami-Dade County is only county in Florida with such approval authority. 21

22 Municipal Incorporation Process Incorporation Process Miami-Dade has an office of Community Redevelopment and Municipal Services (CRMS) which is responsible for the oversight of all municipal incorporations and annexations in the county Petitions may be submitted to BOCC with a minimum of 25% of electors residing in proposed area BOC may form a Municipal Advisory Committee (MAC) to conduct a feasibility and desirability study After receiving MAC report, BOCC schedules initial public hearing 22

23 Municipal Incorporation Process, cont d. Incorporation Process County Planning Advisory Board (CPAB) makes written recommendations to BOCC. BOCC conducts public hearing on petition after receiving CPAB recommendation. If a majority of voters approve the incorporation, BOCC may also approve incorporation and appoint Charter Commission to propose a charter for approval of voters in new city. Miami-Dade County has had a hold on all incorporations and annexations since

24 NC: Joint Legislative Committee on Incorporations Subcommittee of 3 Senators and 3 House members Incorporation Process Purpose is the determine the viability of the proposed city Criteria for incorporation Approval of neighboring cities Minimum millage rate 4 out of 8 services provided Financially viable Minimum population and urban development 24

25 Decrease the Financial Impact of Incorporations and Annexations on the County Options Mitigation Payments Revenue Sharing Tax Credits 25

26 LAFCO Staff Review Financial Impact 1992 state law requiring Revenue Neutrality for all incorporations LAFCO can only approve an incorporation if the amount of revenues the new city receives from the county after incorporation are equal to the amount of saving the county would attain from no longer providing services to the area Revenue neutrality calculation is conducted as part of the LAFCO review process If the incorporation is not found to be revenue neutral, then incorporation can only continue if mitigation payments are made These payments may be lump sum or ongoing mitigation payments or from tax sharing agreements 26

27 Financial Impact Analysis for Fisher Island, FL Financial Impact Based on the fiscal analysis - The revenues from this area = $3,225,000 The cost to service this area = $172,599 Net Loss to the County = $3,052,401 27

28 Financial Incentives For Annexation Financial Impact King County Annexation Initiative Established in 1994 from County General Reserve Fund $10 million to be used by annexing municipalities State Sales Tax Credit Enacted in 2006 Applicable for cities in eligible counties annexing areas containing at least 10,000 residents Tax was implemented as a credit to state sales tax: no tax increase for consumers Proceeds from tax may be received annually for 10 years 28

29 Impact of Financial Incentives Financial Impact Limited Success Annexation Initiative discontinued in 2009 after $2.2 million of $10 million was disbursed Sales tax credit touted as instrumental in recent annexation by City of Kirkland 29

30 Takeaways from Others Experience and Possible Recommendations Allow legislation for the creation of other improvement districts such as residential improvement districts Establish police partnerships Establish joint county and municipal governing bodies focused on planning and coordinated zoning efforts 30

31 Takeaways from Others Experience and Possible Recommendations, cont d. Require the feasibility study to include an analysis of: the impact on the County the impact on other cities and the remaining unincorporated area Require newly incorporated cities to take on more services Alternatively require newly incorporated cities to contract with the County for Police and Fire services for some period of time Impose an independent review process for incorporations and annexations including: a review of proposed boundaries a review of alternative boundaries 31

32 Miami-Dade Task Force 2013 Recommendations - Enact legislation specifying criteria and procedures for an adjacent municipality to raise concern regarding an annexation proposal. Remove code provisions for mitigation payments for non-revenue neutral incorporations or annexations. Recommend contiguous, logical and compact incorporation and annexation boundaries. Enable areas meeting certain criteria to opt into annexation or incorporation upon 20 percent petition by the residents of the area and approval of the majority of the BOCC. Encourage annexation and incorporation of the remaining UMSA. 32