The Council finds that a number of municipal services are required when property is annexed to the city for residential development. Frequently, a full level of service is required before the city realizes the full benefit of property taxes from the area. This is because a substantial period of time usually elapses between the construction of infrastructure and eventual sale of homes to consumers and before the receipt of taxes on the full value of the homes. During this time the city must provide the full range of municipal services to the area, and the level of property taxes received during this time is insufficient to fund such services. The new area development tax is therefore imposed to avoid a drain on the city's finances during such circumstances. The Council finds that failure to impose such tax would place the residents of the subdivisions in question, or of the immediate community, or both, in a condition perilous to their health and safety.
('66 Code, § 3-8.02) (Ord. 542-C-S, passed 2-24-83)