(A) A request to annex property shall be evaluated as to whether the proposed annexation would be in the best interests of the city.
(B) Annexation is generally considered to be advantageous to a municipality because it expands services and the tax based, and increases population. However, when the financial burden of furnishing services to a new area is greater than the revenues, taxes and fees realized from annexation, the difference is borne by the rest of the tax base.
(C) A cost/benefit calculation can change over time. In some cases, the long-term benefit can be shown to outweigh the short-term burden of annexation. The City Council needs to weigh all of the relevant factors and make an informed decision on each proposed annexation.
(D) The City Council shall evaluate the costs and benefits of each proposed annexation before taking action, on the basis of a statement provided by city staff to include the following information:
(1) The city services to be provided;
(2) Existing taxes and fees paid to the city, including property taxes, sewer and water fees;
(3) Projected taxes and fees to be paid to the city upon annexation, including property taxes, sewer and water fees, and state share of municipal revenues;
(4) Any improvements required to streets, sewer systems or water systems.
(Ord. 9365, passed 1-7-2019)