(A) It is appropriate to state categorically that the annexation policies of the city are expected to correspond with the fiscal policies of the city. In the vernacular, "no free lunch." Therefore, it is the policy of the City of Peru that annexation will only be undertaken under circumstances which are not adverse to the fiscal interests of the current residents and taxpayers of the city. Conversely, the city will pursue annexation in areas where city services are already afforded or which can be extended with minimal cost.
(B) At the same time, it should be understood that Peru is a relatively small city and does not seek large infusions of revenue to support increasing costs of services. Instead, it is the long-term intent of the municipality to use the growth in assessed value for the primary purpose of reducing the property tax burden which has accumulated on the municipal taxpayers. As such, a portion of the new assessed value resulting from annexation can be used to generate the revenues necessary to extend services, and the remainder can then be used to reduce the property tax rate.
(Ord. 24-2002, passed 8-5-02)