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HomeMy WebLinkAboutFiscal Plan for LT Leasco Annexation Area in Centre TownshipAttest: RESOLUTION 3492 -05 Passed by the Common Council of the City of South Bend, Indiana July 25, 05 20_. City Clerk President of Common Council Presented by me to the Mayor of the City of South Bend, Indiana July 26, 20 05 Approved and signed by me Ji11v 26 20 05 City Clerk RESOLUTION NO. A RESOLUTION OF THE COMMON COUNCIL OF THE CITY OF SOUTH BEND, INDIANA, ADOPTING A WRITTEN FISCAL PLAN AND ESTABLISHING A POLICY FOR THE PROVISION OF SERVICES TO AN ANNEXATION AREA IN CENTRE TOWNSHIP (LT LEASCO ANNEXATION AREA) WHEREAS, there has been submitted to the Common Council of the City of South Bend, Indiana, an Ordinance and a petition by the sole (100 %) property owner which proposes the annexation of real estate located in Centre Township, St. Joseph County, Indiana, which is described more particularly in Section I of this Resolution, and; WHEREAS, the territory proposed to be annexed encompasses approximately 0.59 acres of vacant, unimproved land, which property is at least 12.5% contiguous to the current City limits, i.e., approximately 30% contiguous, generally located on the south side of Kern Road, approximately 200 feet east of US 31 South. It is anticipated that the annexation area will be developed for an automotive sales and service building, and it is proposed for rezoning within the City as "CB" (Community Business) upon incorporation into the City limits and Common Council approval. Such commercial use will require a basic level of municipal public services of a non - capital improvement nature, including police and fire protection, street and road maintenance, street sweeping, flushing, snow removal, and sewage collection, as well as services of a capital improvement nature, including street and road construction, street lighting, a sanitary sewer system, a water distribution system, and a storm water system and drainage plan; and WHEREAS, the Common Council of the City of South Bend, Indiana, now desires to establish and adopt a fiscal plan and establish a definite policy showing: (1) the cost estimates of services of a non - capital nature, including street and road maintenance, sewage collection, street sweeping, flushing, and snow removal, police and fire protection, and other non - capital services normally provided within the corporate boundaries, and services of a capital improvement nature, including street and road construction, street lighting, a sanitary sewer extension, a water distribution system, and a storm water system to be fianished to the territory to be annexed; (2) the method(s) of financing those services; (3) the plan for the organization and extension of those services; (4) that services of a non - capital nature will be provided to the annexed area within one (1) year after the effective date of the annexation, and that they will be provided in a manner in standard and scope to similar non - capital services provided to areas within the corporate boundaries of the City of South Bend, regardless of similar topography, patterns of land use, or population density; (5) that the services of a capital improvement nature will be provided to the annexed area within three (3) years after the effective date of the annexation in the same manner as the services are provided to areas within the corporate boundaries of the City of South Bend, regardless of similar topography, patterns of land use, or population density, and in a manner consistent with federal, state and local laws; and (6) the plan for hiring the employees of other governmental entities whose jobs will be eliminated by the proposed annexation; and WHEREAS, the Board of Public Works of the City of South Bend, and the Board of Public Safety of the City of South Bend, have each approved a written fiscal plan and established a policy for the provision of services to the territory proposed to be annexed, which plan and policy the Common Council finds to be appropriate and in the best interest of the City, and, which it desires to adopt. NOW, THEREFORE, BE IT RESOLVED BY THE COMMON COUNCIL OF THE CITY OF SOUTH BEND, INDIANA, AS FOLLOWS: Section I. It is in the best interest of the City of South Bend and the area proposed to be annexed that the following described real property located in Centre Township, St. Joseph County, Indiana, be annexed to the City of South Bend: Lot Numbered Thirty -nine (39) as shown on the recorded Plat of Whitcomb & Keller's Southmoor, an Addition to the City of South Bend, recorded in Plat Book 13, page 39 in the office of Recorder of St. Joseph County, Indiana. Lot Numbered Forty (40) as shown on the recorded Plat of Whitcomb & Keller's Southmoor, an Addition to the City of South Bend, recorded in Plat Book 13, page 39 in the office of Recorder of St. Joseph County, Indiana. Section II. It shall be and hereby is now declared and established that it is the policy of the City of South Bend, to furnish services to said territory of a non - capital nature, such as police and fire protection, street and road maintenance, sewage collection, street sweeping, flushing, and snow removal, within one (1) year of the effective date of the annexation, in a manner equivalent in standard and scope to the services furnished by the City to other areas of the City regardless of similar topography, patterns of land use, or population density; and to furnish to said territory services of a capital improvement nature, such as street and road construction, street lighting, a sanitary sewer extension, a water distribution system, a storm water system, and drainage plan, within three (3) years of the effective date of the annexation in the same manner as those services are provided to areas within the corporate boundaries of the City of South Bend regardless of similar topography, patterns of land use, or population density, and in a manner consistent with federal, state and local laws, procedures, and planning criteria. Section III. The Common Council for the City of South Bend shall and does hereby now establish and adopt The Fiscal Plan as set forth in Exhibit "A ", attached hereto and made a part hereof, for the furnishing of said services to the territory to be annexed, which Fiscal Plan provides, among other things, that an existing water main line will be sufficient to service this area and that a lateral sewer line may need to be installed from the sanitary sewer service available on U.S. 31 South, to be paid for by the developer; that street lighting will be provided by revenue in the General Fund; that no new streets are presently required, but any future street construction will be planned, provided, and paid for by the developer; and that a street drainage plan will be also be planned, provided and paid for by the developer subject to compliance with state and local law. Section IV. This Resolution shall be in full force and effect from and of its date of adoption by the Common Council and approval by the Mayor. Member, South Bend Common Council File _wk's 01"CO JON 2 3 2005 PRESENTED -� - Z'S-�r NOT APPROVED ADOPTED TO THE COMMON COUNCIL OF THE CITY OF SOUTH BEND: Your Committee of the Whole, to whom was referred: BILL NO. 05 -87 A RESOLUTION OF THE COMMON COUNCIL OF THE CITY OF SOUTH BEND, INDIANA, ADOPTING A WRITTEN FISCAL PLAN AND ESTABLISHING A POLICY FOR THE PROVISION OF SERVICES TO AN ANNEXATION AREA IN CENTRE TOWNSHIP, LT LEASCO ANNEXATION AREA Respectfully report that they have examined the matter and that in their opinion, this bill is being recommended to the full Council with a favorable recommendation. Roland Kelly Chairman CITY OF SOUTH BEND FISCAL PLAN LT Leasco, LLC Annexation Area Centre Township Stephen J. Lueeke - Mayor South Bend City Council Derek Dieter Charlotte Pfeifer Roland Kelly Ann Puzello David Varner Ervin Kuspa Al Kirsits Timothy Rouse Karen White Division of Community Development Pam Meyer, Director Larry Maghozzi, Assistant Director "Exhibit "A" May 2005 LT Leasco LLCAnnexation Area 2 TABLE OF CONTENTS SECTION I. INTRODUCTION ..................................... ..............................3 SECTION II. GENERAL DATA ................................... ............................... 3 A. Location B. Legal Description C. Contiguity D. Size of Annexation Area E. Buildings and Land Use F. Zoning & Subdivisions G. Population H. Tax Rate I. Assessments J. Municipal Legislative District K. Hiring Plan SECTION III. MUNICIPAL SERVICES ....................... ............................... 5 A. Public Works B. Police Department C. Fire Department D. Code Enforcement E. Environmental Services F. Administrative Services SECTION IV. FISCAL IMPACT .................................... ............................... 9 SECTIONV. APPROVAL ................................................. .............................11 TaxRates ...................................................................... .............................12 LegalDescription ........................................................... .............................13 Map...................................................................... .............................14 LT Leasco, LLC Annexation Area 3 SECTION I. INTRODUCTION A. General This Fiscal Plan represents the City of South Bend's (hereinafter, "City ") ability to provide the necessary infrastructure and services to support the annexation of property in Centre Township, St. Joseph County, Indiana (hereinafter, "Annexation Area "), and was developed through the cooperative efforts of the Area Plan Commission and the following City Departments: Legal Department Department of Public Works South Bend Fire Department South Bend Police Department Department of Code Enforcement Department of Community and Economic Development Department of Administration and Finance SECTION II. GENERAL DATA A. Location The Annexation Area is generally located on the south side of Kern Road, approximately 200 east of US 31 South. See Map 1. B. Legal Description The Annexation Area is part of the Northeast Quarter of Section 2 and the Northwest Quarter of Section 1, Township 36 North, Range 2 East, Centre Township, St. Joseph County, Indiana. For a complete legal description see Table 2. C. Contiguity The Annexation Area is at least 1/8 (12.5 %) contiguous to the current City limits: Contiguous 190.84 feet 30% Non - Contiguous 453.18 feet 70% Total 644.02 feet 100% LT Leasco, LLC Annexation Area 4 D. Size of Annexation Area The Annexation Area is 0.59 acres in area. E. Buildings and Land Use There are no buildings within the Annexation Area. Current land use is vacant. The Annexation Area is proposed to be zoned "CB" Community Business District, for automotive sales and services, upon approval of the City Council and incorporation into the City of South Bend. F. Zoning & Subdivisions The site is zoned "R" Residential in unincorporated St. Joseph County. The Annexation Area is proposed to be zoned "CB" Community Business District. Subdivision of record within the Annexation Area: Whitcomb & Keller Southmoor Addition G. Population No persons currently reside within the Annexation Area. H. Tax Rate The tax rates used are those of 2003 payable in 2004. The Township Rate will decrease by $0.1002 per $100.00 of assessed valuation with the deletion of the Fire Fighting Fund and the Cumulative Fire assessments. The tax rate for the Annexation Area will increase by $2.2954 with the addition of the City and Town Rate, the Redevelopment District Rate and the South Bend Transpo Rate. The net increase in property taxes will be $2.1952 per $100.00 of assessed valuation. Table 1 shows representative tax rate information as published by the St. Joseph County Auditor. I. Assessments 2003 payable 2004, St. Joseph County Auditor property tax records: Land: $2,900 Improvements: $0 Exemptions: $00 Net: $2,900 LTLeasco, LLCAnnexation Area 5 J. Municipal Legislative District The Annexation Area will be in the 5`h District. K. Hiring Plan It is anticipated that this annexation will not result in the elimination of jobs for employees of any other governmental entities. The Centre Township Trustee has been notified of this Annexation. SECTION III. MUNICIPAL SERVICES A. Public Works Sewer - An 8" sanitary sewer service is available on US 31 South on the west boundary of the site. A lateral may be installed to serve this site. The developer will need to extend the sewer from that point to the Annexation Area. Water - A 12" water main is located on the east side of US 31 South. There is more than adequate capacity for the Annexation Area. Extensions of, or taps into sanitary sewer and water lines shall be governed by I.C. 36- 9 -22 -2, I.C. 8 -1.5 -3 and 4, and the rules and regulations of the South Bend Water Works and Sewer Utility. Street Lighting - Additional revenue to the General Fund from this annexation area will be sufficient to pay for street light operations. Waivers of Annexation - No waivers of annexation are in effect for the Annexation Area. Streets - The Annexation Area does not require the addition of new streets. However, if in the fixture such improvements are provided, the developer will be required to construct new public streets to access the lots proposed for development. Street maintenance, sweeping, and snow removal responsibility of that section of Kern Road adjacent to the Annexation Area will be taken over by the Bureau of Streets. Drainage Plan - Drainage facilities will be constructed by the developer. Drainage plans are typically completed by the developer, submitted with subdivision plats, and reviewed and approved by the St. Joseph County Surveyor, the Board of Public Works of the City of South Bend, and the St. Joseph County Engineer, as appropriate. Drainage plans for this Annexation must meet the requirements of the appropriate jurisdiction(s). The Phillips Ditch, a legal drain maintained by an assessment of the St. Joseph County Drainage Board, meanders through the Annexation Area. General Budget Analysis LT Leasco, LLC Annexation Area 6 2002 Budget Report for the Department: Expenditures: State Revenue: Balance (a): Miles of Roadway in City (b): Cost per Mile: New Mileage within Area: Total estimated Maintenance cost/year: $7,427,294 $5,341,296 $2,086,165 @482 @$4,328 ((a) divided by (b)) @ 0.02miles (108 feet) @$87.00 ($4,328 * 0.02) When fully developed, this annexation area is not expected to require major capital outlays for public works vehicles or equipment. Cost of road maintenance (such as pavement repair and/or replacement) will not be fully required during the early years of development, in anticipation that major repairs will not be needed. B. Police Department The noted area would be expected to be added to the already existing BEAT 15. Police patrols, traffic enforcement, and emergency responses will be part of the services the City will offer to this area. At this time it is not expected that this annexation would cause calls for service to increase significantly, and it is not anticipated that it will be necessary to increase police patrols beyond the already existing beat patrol at this time. The area under consideration is not expected to cause any unusual problems. Cost for servicing this area would be expected to be absorbed by the existing budget of the Police Department, as the addition of this area would not be significant to the point of having to increase any budgetary items. Police services and response time in this area can be expected to be comparable and consistent with that as in all other areas of the City. Police coverage to this area could begin immediately upon annexation and coordination of the conversion of the 911 emergency phone system for that area. Conversion of the 911 emergency phone system may take up to one month from the effective date of the Annexation. It is anticipated that the services of this Department will be minimally required to service the Annexation Area in the first five years of the annexation. Therefore, the service cost of the Department has been reduced by one -third to reflect a more realistic actual cost to service the Annexation Area in the first five years. LT Leasco, LLC Annexation Area 7 Note: The cost ofservice for this Annexation Area is based on the number ofparcels. Household information is provided for comparative purposes. 2002 Budget Report for the Department: Expenditures: $21,176,193 Number of Households in City (2000): @42,908 Cost per Household: @$494 Number of Parcels in City (2003): @47,462 Cost per Parcel: @$446 Proposed Number of Households in Area: @0 Number of new Parcels: @1 Cost for Annexation Area per year: $298 ($446 * I = $44613 = $149 * 2) C. Fire Department The Annexation Area will be serviced primarily by Station #10, located at 5303 York Road approximately two point three (2.3) miles away. Additional Fire Department units would respond from Fire Station #8 located at 2402 Twyckenham Drive which is approximately three point eight (3.8) miles away. Primary fire response will be taken over by the South Bend Fire Department. Fire coverage to this area will begin immediately upon annexation and coordination of the conversion of the 911 emergency phone system for that area. Conversion of the 911 emergency phone system may take up to one month from the effective date of the Annexation. The South Bend Fire Department does not foresee any unusual fire protection problems related to this annexation. Response times will be comparable to other areas of the City. No additional equipment will need to be purchased or personnel hired to service the Annexation Area. Adequate water supply will be necessary as development takes place. It is anticipated that the services of this Department will be minimally required to service the Annexation Area in the first five years. Therefore, the service cost of the Department has been reduced by one -third to reflect a more realistic actual cost to service the Annexation Area in the first five years. Note: The cost of service for this Annexation Area is based on the number of parcels. Household information is provided for comparative purposes. 2002 Budget Report for the Department: Expenditures: $15,020,769 Number of Households in City (2000): @42,908 Cost per Household: @$350 Number of Parcels in City (2003): @47,462 LT Leasco, LLC Annexation Area 8 Cost per Parcel: @$316 Proposed Number of Households in Area: @0 Number of new Parcels: @1 Cost for Annexation Area per year: $211 ($316.1 = $316 / 3 = $105 ' 2) D. Code Enforcement The Annexation Area will be added to Area 5. Code enforcement, a service not currently available in the Annexation Area, will be made available upon annexation. The Department of Code Enforcement will be able to provide services to the Annexation Area with comparable response times, with no additional increase in manpower or equipment. The Department will respond to calls for service upon the effective date of the Annexation. It is anticipated that the services of this Department will be minimally required to service the Annexation Area in the first five years. Therefore, the service cost of the Department has been reduced by one -third to reflect a more realistic actual cost to service the Annexation Area in the first five years. 2002 Budget Report for the Department: Expenditures: $2,050,310 Number of Parcels in City (2003): @47,462 Cost per Parcel: @$43 Proposed Number of Parcels in Area: @1 Cost for Annexation Area per year: $29 (s43 •1 = 43 / 3 = $14.2) E. Environmental Services Environmental Services provides wastewater treatment and administers the City's Solid Waste service. These services are supported by user fees, and are paid through the Water Works billing system. The following Solid Waste rates would apply, as applicable. Single family rate: Senior rate: Duplex rate: Tri-plex: Quad: Recycling fee: $8.00 per month. $5.50 per month. $10.50 per month $13.00 per month $15.00 per month $1.97 per month LT Leasco, LLCAnnexation Area 9 F. Administrative Services The City of South Bend provides a wide range of services other than those noted above, such as the Mayor's office, the Legal Department, and the Department of Parks & Recreation. These services are generally available upon the effective date of the Annexation. Full and dedicated response for non - capital services will be in place within one year of the effective date of the Annexation, as required by State law. Costs for these services have not been calculated. The incorporation of the Annexation Area will not effect the provision of other services currently provided to this property on a county -wide basis. The St. Joseph County Health Department, the St. Joseph County Public Library, the Area Plan Commission and the St. Joseph County /South Bend Building Department are some of the county-wide agencies and their services that will continue to provide the same type and level of services to the Annexation Area. County -wide services will continue to be supported by the State, County, Township, School, Library, and Airport tax rates that will remain in effect. Measco, LLCAnnexation Area 10 SECTION IV. FISCAL IMPACT 1) Essential city services can be made available to the current and future property owners of the Annexation Area in a timely and comparable fashion, per the requirements of State law and this fiscal plan. 2) The City is financially willing and able to support city services to the territory sought to be annexed. 3) Required improvements made by the petitioner and/or owner of the parcels must be made in accordance with the standards of the City of South Bend. 4) Required improvements and services made and offered by the City of South Bend will be completed and provided within the time frames required by State law and stated in this fiscal plan. 5) All figures are estimates. Final cost of capital expenditures, if any, will not be determined until bids are publicly solicited, contracts are awarded and projects are closed out. 6) Property tax revenue and land assessment estimates are based on a combination of: - 2003 payable 2004 tax rates - taxes paid in previous years by a comparable development - estimates of units built - estimates of unit values and land assessments Tax rates are subject to change every year. Tax and land assessments for purposes of Table 1 are adjusted to reflect an approximate two -year delay to compensate for when actual measurement of assessments are actually done on properties. 7) Department expenditures and revenues are derived from the City of South Bend Budget. 8) The estimated costs to provide services, noted in Section III, Municipal Services, is a City-wide average based on a particular budget year. In the case of the proposed development in the Annexation Area, some of these services will not be required or possibly requested for many years. Hence, the cost of providing services over the first five years is adjusted, and the costs reflected in this fiscal plan should be evaluated with this in mind. LT Leasco, LLC Annexation Area 11 Wry 1:11 Summary Table — Estimated Fiscal Impact Expenditures Capital (est.) Non - Capital Per Year (est.) 5 -Year Sewer Facilities $0.00 $ 0 Water Facilities $0.00 $ 0 Street Lights $0.00 $ 0 Police $0.00 1 $298 1 $1490.00 Fire $0.00 $211 $1055.00 Code $0.00 $29 $145.00 Street Maintenance $0.00 $87 $435.00 Street Construction $0.00 $0 $ 0 Approximate 5 -Year Expenditures $3,125 Revenues Tax Year @ Property Taxes /year Unincorporated parcels only 03104 $69.4 (year 1; 2006) 04/05 $1,530 (year 2; 2007) 05/06 $1,530 (year 3; 2008) 06/07 $3,070 (year 4; 2009) 07/08 $3,070 (year 5; 2010) 08/09 $3,070 Note: All Revenues estimated & are City portion of total tax rate, and do not include Homestead & other Assessments 0 MVH/LRSA estimated from 2002 revenue/mile @$11,340 x 5 years $1,134.00 Approximate 5 -Year Revenues Total $13,404 Projected full net assessment: $186,000 (based on comparable property found in SB - Portage Township). Estimated tax income (City portion) per year after full development potential is reached: $3,068. LT Leasco, LLC Annexation Area 12 SECTION V. APPROVAL Approved by the City of South Bend Common Council this day of 12005. LT Leasco, LLC Annexation Area 13 TABLE 2 TAX RATE INFORMATION - Centre Township 2003 PAYABLE 2004 Total Township Rate 0.1064 3.92% 0.0062 0.13% Rate Decrease: - 0.1002 Total School Rate Centre % OF SOUTH BEND % OF TAX RATE FUND TOWNSHIP TOTAL RATE GERMAN TOTAL RATE DIFFERENTIAL Total City/Town Rate 0 2.1115 43.03% Total State Rate 0.0024 0.09% 0.0024 0.05% Total County Rate 0.7652 28.22% 0.7652 15.59% 2.06% Township Fund 0.0044 0.0346 0.0044 0.0346 0.71% Poor Relief Fund 0.0018 0.0018 0.0827 1.69% Fire Fighting Fund 0.0817 - 0.0817 Township Recreation Fund 0 2.7117 0 4.9069 100.00% Fire Equipment Debt Fund 0 0 Poor Relief Debt 0 0 Cumulative Fire 0.0185 - 0.0185 Total Township Rate 0.1064 3.92% 0.0062 0.13% Rate Decrease: - 0.1002 Total School Rate 1.6201 59.74% 1.6201 33.02% Total Library Rate 0.183 6.75% 0.183 3.73% Total City/Town Rate 0 2.1115 43.03% 2.1115 Total Redevelopment District Rate 0.1012 2.06% 0.1012 Total Airport Rate 0.0346 1.28% 0.0346 0.71% South Bend Transpo 0.0827 1.69% 0.0827 Rate Increase: 2.2954 TOTAL TAX RATES 2.7117 100.00% 4.9069 100.00% 2.1952 Source: St Joseph County Tax Records MAP 1 LT Leasco, Inc. Annexation Area .: Ll— L, J r r� Map provided by The City of South Bend G�S • 2003 0 149 F e Annexation Area City Limits North LT Leasco, LLCAnnexation Area 14 TABLE 2 LEGAL DESCRIPTION Lot Numbered Thirty -nine (39) as shown on the recorded Plat of Whitcomb & Keller's Southmoor, an Addition to the City of South Bend, recorded in Plat Book 13, page 39 in the office of Recorder of St. Joseph County, Indiana. Lot Numbered Forty (40) as shown on the recorded Plat of Whitcomb & Keller's Southmoor, an Addition to the City of South Bend, recorded in Plat Book 13, page 39 in the office of Recorder of St. Joseph County, Indiana. 1200 CouNTY -CTY BUILDING 227 W. JEFFERSON BOULEVARD SOUTH BEND, INDIANA 46601 -1830 PHONE 574 /235 -9371 FAx 574/235 -9021 TDD 574/ 235 -5567 CITY OF SOUTH BEND STEPHEN J. LIJECKE, MAYOR COMMUNITY & ECONOMIC DEVELOPMENT SHARON T. KENDALL EXECUTIVE DIRECTOR June 23, 2005 Ms. Charlotte Pfiefer, President South Bend Common Council 4th Floor, County -City Building South Bend, IN 46601 Re: A RESOLUTION OF THE COMMON COUNCIL OF THE CITY OF SOUTH BEND, INDIANA ADOPTING A WRITTEN FISCAL PLAN AND ESTABLISHING A POLICY FOR THE PROVISION OF SERVICES TO AN ANNEXED AREA IN CENTRE TOWNSHIP - LT Leasco ANNEXATION Dear Ms. Pfiefec I am attaching for filling, the above - referenced resolution, which is a companion to Bill No. 10 -05. Thi Bill proposes to voluntarily annex contiguous territory in Centre Township to the City of South Bend. The resolution indicates the approval and adoption by the Common Council of the written plan and policy attached thereto concerning the provision of services, both capital and non - capital in nature, to the territory to be annexed. This Annexation is a.59 acre parcel on the southeast comer of US 31 South and Kern Road. All public improvements, if any, will be required to be done at the expense of the developer. I am requesting that the attached resolution be placed on the July 25, 2005 agenda of the Common Council meeting at which the companion Bill is given Second Reading. I will be attending the meeting as the presenter. Your favorable consideration is requested. incere Larry M aghoa Assistant irecto Division of Community D velopment cc: John Voorde [i(I Duce Find in Cis g1l 2 3 2005 JObO y$0�6'st7D, � CRY CLERK, COMMUNITY DEvELOPMENT ECONOMIC DEVELOPMENT FINANCIAL & PROGRAM PAMELA C. MEYER DONALD E. INKS MANAGEMENT 574/235 -9660 574/235 -9371 ELIZABETH LEONARD FAx 574/235 -9697 574/235 -9371