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HomeMy WebLinkAboutFiscal Plan for Olive Road 3 Annexation Area in German TownshipAttes RESOLUTION 3250 -03 Passed by the Common Council of the City of South Bend, Indiana October 13 20 03 Presented by me to the Mayor of the City of South Bend, Indiana October 14, 20 03 City Clerk dent of Common Council Approved and signed by me October 15 20 03 . City Clerk RESOLUTION NO. 3 2 Sc _ c)3 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 GERMAN TOWNSHIP (OLIVE ROAD 3 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 German 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 1.62 acres of land containing two single family homes, which property is at least 12.5% contiguous to the current City limits, i.e., approximately 100% contiguous, generally located on the east side of Olive Road at the intersection of Enterprise Drive. It is anticipated that in the future the annexation area may be developed as either commercial or industrial, based on surrounding land uses, which will require a basic level of municipal public services, of a non - capital improvement nature, including police and fire protection, street androad 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, 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 furnished 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 real property located in German Township, St. Joseph County, Indiana, described more particularly as follows, be annexed to the City of South Bend: A parcel of land in the Northeast Quarter of the Southwest Quarter of Section 19, Township 38 North, Range 2 East, St. Joseph County, Indiana described as follows: Beginning at the southwest corner of Lot "D" of the Olive Road Commerce Park - Second Replat subdivision; thence north 420 feet to the place of beginning of the parcel herein described; thence north along the west line of said Lot "D" 220 feet; thence west 200 feet to the east right -of -way line of Olive Road, and also being the city limit line of the City of South Bend; thence south along said right -of -way line and the city limit line of the City of South Bend 220 feet; thence east 200 feet to the place of beginning. Section H. 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 famishing of said services to the territory to be annexed, which Fiscal Plan provides among other things, that existing water mainlines and sewer mainlines will be sufficient to service this area; that street lightning is being provided through a previous annexation; that the Olive Road right -of -way was annexed into the City under a previous annexation and that the widening of Olive Road will necessitate a drainage plan as part of the project. 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. PRESENTED [ d -k 3 -03 NOT APPROVED ADOPTED L 0 - 13 - 03 0 Member, South Bend CommorlCouncil TO THE COMMON COUNCIL OF THE CITY OF SOUTH BEND: Your Committee of the Whole, to whom was referred: BILL NO. 03 -108 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 GERMAN TOWNSHIP, OLIVE ROAD 3 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. Karl King Chairman CITY OF SOUTH BEND Olive Road 3 Annexation Area FISCAL PLAN German Township Stephen J. Luecke - Mayor South Bend City Council James Aranowski Charlotte Pfeifer Roland Kelly Karl King David Vamer Ervin Kuspa Sean Coleman Al Kirsits Karen White Division of Community Development Pam Meyer, Director Larry Magliozzi, Assistant Director "Exhibit "A" September 2003 Olive Road 3 Annexation 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 SECTION V. APPROVAL ....... ............................... 11 TaxRates .................... .............................12 Legal Description .............. .............................13 Map.................. ............................... 14 Olive Road 3 Annexation Area 3 SECTION I. INTRODUCTION A. General This Fiscal Plan represents the City of South Bend's (hereinafter, "City ") policy for the annexation of property in German 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 located on the east side of Olive Road, at the southeast intersection of Enterprise Drive. See Map 1. B. Legal Description The Annexation Area is part of the Northeast Quarter of the Southwest Quarter of Sec 19, Township 38 North, Range 2 East all in German 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 Non - Contiguous Total (approx) 840.00 feet 0 feet 840.00 feet 100% 0% 100.00% D. Size of Annexation Area The Annexation Area is approximately 1.01 acres in area. Olive Road 3 Annexation Area 4 E. Buildings and Land Use There two houses in the Annexation Area. There are no immediate development plans, but it is anticipated that the properties will be developed as either commercial or industrial, based on the surrounding land uses. The houses will be removed. F. Zoning & Subdivisions The site is zoned "R" Residential in unincorporated St. Joseph County. It is proposed to be zoned "A" Single Family upon incorporation. G. Population There are no people currently residing in the Annexation Area. H. Tax Rate The tax rates used are those of 2001 payable in 2002. The Township Rate will decrease by $.1908 per $100.00 of assessed valuation with the deletion of the Fire Fighting Fund, the Fire debt Fund and the Cumulative Fire assessments. The tax rate for the Annexation Area will increase by $2.8726 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 $2.6818 per $100.00 of assessed valuation. Table] shows representative tax rate information as published by the St. Joseph County Auditor. I. Assessments 2002 payable 2003, St. Joseph County Auditor property tax records: Land: $11.310.00 Improvements: $59,700.00 Net: $71,010.00 Estimated net assessment at build out for the proposed development: Unknown J. Municipal Legislative District The Annexation Area will be in the 1st District. Olive Road 3 Annexation Area 5 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 German Township Trustee has been notified of this annexation. SECTION III. MUNICIPAL SERVICES A. Public Works Sewer - The sanitary sewer mains are currently in place and available to service the area. No additional expenditures will be needed to extend existing sewer main facilities. Water - There is currently a 16" water main on the west side of Olive Road and a 10" water main on the south side of Enterprise Drive. A flow test at Olive Road and Cleveland Road on June 11, 2002 indicated a static pressure of 59 psi, residual pressure of 50 psi, and a flow rate of 1,170 gpm. No additional expenditures will be needed to extend existing water main facilities. Street Lighting - Street lighting is already being provided through a previous annexation Waivers of Annexation - No waivers of the right to remonstrate against an annexation are in effect for this area. Streets - The Olive Road right -of -way was annexed into the City under a previous annexation Drainage Plan - Widening of Olive Road will necessitate a drainage plan as a part of the project. 2000 Operating Budget for the Department $2,550,312 Reconstruction/Maintenance of Roads snow removal and leaf - pick -up: $993,058 Total $3,543,370 Miles of Roadway: @472 Cost per Mile: @$7,507 New Mileage (est.) .0 miles (01) Cost for Annexation Area per year: @$0.00 When fully developed, this annexation area is not expected to require major capital outlays for public works vehicles or equipment. 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. Olive Road 3 Annexation Area 6 B. Police Department The noted area would be expected to be added to the already existing Beat 22. 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. It is anticipated that the services of this Department will not be required to a great extent in the early years of the development of this area, although monitoring will still be conducted. Therefore, the service cost of the Department has been reduced by two- thirds to reflect a more realistic actual cost to service the Annexation Area in the first five years. 2000 Operating Budget for the Department: $19,596,124 Number of Parcels in City (3/1/00): @47,378 Cost per Parcel: @$414 Proposed Number of Parcels in Area: 2 Cost for Annexation Area per year: @$828 / 3 = $276 C. Fire Department The Annexation Area will be serviced primarily by Station #11, located at 3505 North Bendix Drive approximately three point seven (3.7) miles away. Additional Fire Department units would respond from Fire Station #7 located at 1616 Portage Avenue which is approximately five point nine (5.9) miles away. Distance from fire stations and response times will greatly improve when the new fire station #12 is constructed in the future. 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 not be required to a great extent in the early years of the development of this area, although monitoring will still be conducted. Therefore, the service cost of the Department has been reduced by two- thirds to reflect a more realistic actual cost to service the Annexation Area in the first five years. 2000 Operating Budget for the Department: $14,033,553 Number of Parcels in City (3/1/00): @47,378 Cost per Parcel: @$296 Proposed Number of Parcels in Area: 2 Cost for Annexation Area per year: @$296 / 3 = $131 Olive Road 3 Annexation Area 7. D. Code Enforcement The Annexation Area will be added to Territory 8. The Department of Code Enforcement will be able to provide services to the Annexation Area with comparable response times. The Department will respond to calls for service upon the effective date of the Annexation. Full and dedicated response will be in place within one year of the effective date of the Annexation. It is anticipated that the services of this Department will not be required to a great extent within the early years of the development of this area, although monitoring will still be conducted. Therefore, the service cost of the Department has been reduced by two- thirds to reflect a more realistic actual cost to service the Annexation Area in the first five years. 2000 Operating Budget for the Department: $1,151,497 Number of Parcels in City (3/1/00): @47,378 Cost per Parcel: @$24 Proposed Number of Parcels in Area: 2 Cost for Annexation Area per year: @$48 / 3 = $16 E. -Environmental Services Environmental Services provides wastewater treatment and administers the City's sanitation service (trash pickup). These services are supported by user fees, and are paid through the Water Works billing system. Industrial customers are not served: 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 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 Parks & Recreation. These services are 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. 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 County and Township tax rates that will remain in effect. Olive Road 3 Annexation Area 8 SECTION IV. FISCAL IMPACT 1) Essential city services can be made available to the residents (and territory) 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 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 made by the City will be completed within the time frames provide by State law and 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 estimates are based on 2001 payable 2002 tax rates, taxes paid in previous years by a comparable development, estimates of units built, and no tax abatements or adjustments. Tax rates are subject to change every year. 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 largely reduced (by 1/3), and the costs reflected in this fiscal impact should be evaluated with this in mind. Olive Road 3 Annexation Area 9 Summary Table - Fiscal Impact Expenditures Capital (est.) Non - Capital Per Year (est.) 5 -Year Sewer Extension $0.00 n/a $0 Water Extension $0.00 n/a $0 Street Lights $0.00 TIF $0 Police $0.00 $276.00 $1,380 Fire $0.00 $130.00 $650 Code $0.00 $16.00 $80 Street Maintenance $0.00 $0.00 $0 Street Lights $0.00 $0.00 $o Street Construction $0.00 TIF $0 Total $2,110 Revenues Tax Year @ Property Taxes unincorporated = 02103 $1,214.00 (year 1) 03/04 $486 (year 2) 04/05 $300 (year 3) 05/06 $100 (year 4) 06/07 $100 (year 5) 07/08 $300 MVIVLRSA estimated from 2000 revenue /mile @$12,618 x S years $0 Total $1,286 Estimated full net assessment: $10,000 Estimated tax income per year after full development potential is reached: $300 Olive Road 3 Annexation Area 10 SECTION V. APPROVAL Approved by the City of South Bend Common Council this day of 2003 Olive Road 3 Annexation Area IC TAX RATE INFORMATION - German Township 2001 Payable 2002 GERMAN % OF SOUTH BEND TAX RATE % OF FUND TOWNSHIP TOTAL RATE GERMAN DIFFERENTIAL TOTAL RATE Total State Rate 0.0033 0.1% 0.0033 0.1% Total County Rate 0.9473 26.2% 0.9473 15.0% Township Fund 0.0065 0.0065 Poor Relief Fund 0.0014 0.0014 Fire Fighting Fund 0.1171 - 0.1171 Fire Debt Fund 0.0404 - 0.0404 Cumulative Fire 0.0333 - 0.0333 Township Recreation 0.0022 0.0022 Total Township Rate 0.2009 5.6% 0.0101 0.2% - 0.1908 Rate decrease Total School Rate 2.1725 60.1% 2.1725 34.5% Total Library Rate 0.2496 6.9% 0.2496 4.0% Total City/Town Rate 2.6664 2.6664 42.4% Total Redevelopment 0.0983 0.0983 1.6% District Rate Total Airport Rate 0.0406 1.1% 0.0406 0.6% South Bend Transpo Rate 0.1079 0.1079 1.7% 2.8726 Rate increase TOTAL TAX RATES 3.6142 100.0% 6.2960 2.6818 100.0% Olive Road 3 Annexation Area 12 TABLE 2 LEGAL DESCRIPTION A parcel of land in the Northeast Quarter of the Southwest Quarter of Section 19, Township 38 North, Range 2 East, St. Joseph County, Indiana described as follows: Beginning at the southwest corner of Lot "D" of the Olive Road Commerce Park - Second Replat subdivision; thence north 420 feet to the place of beginning of the parcel herein described; thence north along the west line of said Lot "D" 220 feet; thence west 200 feet to the east right -of -way line of Olive Road, and also being the city limit line of the City of South Bend; thence south along said right -of -way line and the city limit line of the City of South Bend 220 feet; thence east 200 feet to the place of beginning. Map 1 1 -so I ve andJ NORTH OLIVE Key: Annexation Area City Limits Prepared by the Division of Community Development, City of South Send, IN 1200 COUNTY -QTY BMLDING SOUrH BEND, INDIANA 46601 -1830 October 6, 2003 PHONE 5741235 -9371 FAx 574/235 -9021 TDD 574/ 235 -5567 CITY OF SOUTH BEND STEPHEN J. LUECKE, MAYOR COMMUNITY & ECONOMIC DEVELOPMENT Ms. Karen White, 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 GERMAN TOWNSHIP - Olive Road 3 ANNEXATION Dear Ms. White: I am attaching for filling, the above - referenced resolution, which is a companion to Bill No. 73 -03. This Bill proposes to annex contiguous territory in German 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. Olive Road 3 is a voluntary petition. It is a 1.01 acre parcel on the east side of Olive Road, south of the Indiana East/West Toll Road. All public improvements will be required to be done at the expense of the developer. I am requesting that the attached resolution be placed on the October 13, 2003 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. Sincer y, Larry Maglio zi, As DirC e�tbr" Division of ommunity Development cc: Loretta Duda F: IDATAISHAREIDpndl4nne xationUCTIVEINorth Olive 31Council02.no3.wpd L' o ® it zon t:. COMMUNITY DEVELOPMENT ECONOMIC DEVELOPMENT FINANCIAL & PROGRAM PAMELA C. MEYER DONALD E. INKS MANAGEMENT 5741235 -9660 574/235 -9371 ELIZABETH LEONARD FAX: 574/235 -9697 574/235 -9371