A. Because annexation of lands into the city imposes additional obligations upon the city and its service delivery capabilities, it is the policy of the city to require those who request annexation of their lands into the city to mitigate the effects of such annexation. Accordingly, there is hereby authorized an annexation fee to be paid prior to publication of an ordinance of annexation or alternatively to be paid in conjunction with payment of development impact fees, or by both. Such fees shall be computed in accordance with a formula established by resolution of the city council pursuant to the authority granted hereby or as otherwise provided by agreement with the owner of the lands to be annexed. Such fee may be modified by subsequent resolution of the city council. Annexation fees are hereby declared not to be development impact fees, but rather are fees made necessary as a consequence of annexation of new lands into the city, which costs should not be borne by lands already situated within the city. Fees paid pursuant to this chapter shall be deposited in a separate dedicated account to be used exclusively for studies or projects which are related to newly annexed lands. The city treasurer is hereby authorized to establish such account and include it in the annual city budget.
B. The city may also require mitigation of annexation impacts by agreement which requires construction of improvements or dedication of lands for public purposes. (Ord. 133, 4-13-2005)