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HomeMy WebLinkAboutResolution No 11-2023 - Fiscal Plan Resurrection Lutheran Annexation AreaRESOLUTION NO. 11-2023 A RESOLUTION OF THE BOARD OF PUBLIC WORKS 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 (RESURRECTION LUTHERAN ANNEXATION AREA) WHEREAS, there has been submitted to the Common Council of the City of South Bend, Indiana, an Ordinance and a petition by all (100%) property owners which proposes the annexation of real estate located in German Township, St. Joseph County, Indiana, which is more particularly described at Page 13 of Exhibit “A” attached hereto; and WHEREAS, the territory proposed to be annexed encompasses approximately 1.2 acres of vacant land, which property is at least 12.5% contiguous to the current City limits, i.e., 100.0% contiguous, generally located at the southeast corner of Nimtz Parkway and Olive Road (53000 block of Olive Road). It is anticipated that the annexation area will be used for a parking lot; and WHEREAS, the development will require a basic level of municipal public services of a non-capital improvement nature, including 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 Board of Public Works 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, street sweeping, flushing, and snow removal, and sewage collection, 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 equivalent 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, and population density; (5) that services of a capital improvement nature will be provided to the annexed area within three (3) years after the effective date of the annexation within 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; and (6) the plan for hiring the employees of other governmental entities whose jobs will be eliminated by the proposed annexation. NOW, THEREFORE, BE IT RESOLVED BY THE BOARD OF PUBLIC WORKS 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 described more particularly at Page 14 of Exhibit “A” attached hereto be annexed to the City of South Bend. Section II. That it shall be and hereby is now declared and established that it is the policy of the City of South Bend, by and through its Board of Public Works, to furnish to said territory services of a non-capital nature, such as street and road maintenance, 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 services furnished by the City to other areas of the City regardless of similar topography, patterns of land utilization, and population density; and to furnish to said territory, services of a capital improvement nature such as street and road construction, a street light system, a sanitary sewer system, 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. Section III. That the Board of Public Works shall and does hereby now establish and adopt the Fiscal Plan, attached hereto and incorporated herein as Exhibit “A”, and made a part hereof, for the furnishing of said services to the territory to be annexed, which provides, among other things, that the public sanitary sewer and water network is available with capacity sufficient to service this area with costs for extensions, any improvements in sewer or water capacity, and a City-approved drainage system to be paid for by the developer, all in compliance with state and local law; that no additional street lighting will be necessary and any future lighting especially of a decorative nature or with underground wiring will be at the developer/owner’s expense; and that no new roads or streets will be required. Section IV. Sidewalks should be provided by the owner/developer along public streets and must comply with the Americans with Disabilities Act (ADA) under the PROWAG standards. Section V. It is required as a condition of annexation that any future alterations to the property meet the City of South Bend’s building and zoning requirements. Adopted the day of , 2023. March 14, 2023 14th. March Exhibit “A” THE CITY OF SOUTH BEND FISCAL PLAN RESURRECTION LUTH E R AN A NNEXATION AREA Prepared by City of South Bend Department of Community Investment February 20, 2023 Resurrection Lutheran 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 & Land Use F. Zoning & Subdivisions G. Population H. Tax Rate & Impact I. Parcel Ownership & Assessments J. Municipal Legislative District K. Hiring Plan SECTION III. MUNICIPAL SERVICES ....................................................................6 A. Public Works B. Police Department C. Fire Department & EMS D. Neighborhood Services & Enforcement E. Environmental Services F. Administrative Services SECTION IV. LAND USE ANALYSIS & DEVELOPMENT CRITERIA .......................10 SECTION V. FISCAL IMPACT ...............................................................................11 Fiscal Impact: TABLE 1 Legal Description ......................................................................................................13 Map: MAP 1 ....................................................................................................14 Resurrection Lutheran Annexation Area 3 SECTION I. INTRODUCTION 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 following City Departments: Legal Department Department of Public Works South Bend Fire Department South Bend Police Department Department of Community Investment Department of Administration & Finance SECTION II. GENERAL DATA A. Location The Annexation Area is located at the southeast corner of Nimtz Parkway and Olive Road (53000 block of Olive Road). See Map 1. B. Legal Description The Annexation Area is part of the East Half of the Northwest Quarter of Section 30, Township 38 North, Range 2 East, in German Township, St. Joseph County, Indiana. For a complete legal description, see Page 13. C. Contiguity The Annexation Area is at least 1/8 (12.5%) contiguous to the current City limits: Contiguous 1,037.8 feet 100.0% Non-Contiguous 0.0 feet 0.0% Total 1,037.8 feet 100.0% D. Size of Annexation Area The Annexation Area is approximately 1.15 acres. Resurrection Lutheran Annexation Area 4 E. Buildings & Land Use The Annexation Area contains vacant land. An expansion of the adjoining Resurrection Lutheran Academy parking lot and landscaping area are proposed for the land. F. Zoning & Subdivisions The two properties in the Annexation Area are currently zoned A Agricultural District in St. Joseph County. With the annexation ordinance, the properties would automatically be zoned as S1 Suburban Neighborhood 1 in the City. The Annexation Area does not fall within any subdivision of record. G. Population No people currently reside in the Annexation Area. After development, no residents are proposed to live in the Annexation Area. H. Tax Rate & Impact The tax rates used are those of 2022 payable 2023. The total tax rate for unincorporated German Township is 2.4383 per $100 of taxable real estate. The total tax rate for South Bend German Township is 5.2560 per $100 of taxable real estate. Per State law, the tax caps expressed as a percentage of the gross assessed value for different classifications of property are as follows, regardless of the property’s location being within South Bend or unincorporated St. Joseph County: Property Type Cap Homestead Residential 1.0% Non-Homestead Residential 2.0% Agricultural 2.0% Other (Commercial) 3.0% For at least the four years after the effective date of the annexation, the expected tax rates, tax levies, expenditure levels, service levels, and annual debt service payments are estimated to be approximately the same as those in effect at the time of annexation for each of the political subdivisions to which the proposed annexation applies. Because of the relatively small size of the Annexation Area and its assessed value relative to the total size and tax base of the various political subdivisions, this annexation is expected, for at least four years after the effective date of this annexation, to have a negligible impact on the finances and tax revenues of South Bend and other political subdivisions to which the proposed annexation applies, on the political subdivisions in St. Joseph County not part of this annexation, and on taxpayers not part of this annexation. Resurrection Lutheran Annexation Area 5 I. Parcel Ownership & Assessments Parcel Identification Number Address Parcel Owner Assessed Value (Total) 004-1020-033402 Vacant lot, southeast corner Olive Road & Nimtz Parkway Michiana Lutheran Education Association Inc. $ 500 004-1020-0335 Vacant lot, southeast corner Olive Road & Nimtz Parkway Michiana Lutheran Education Association Inc. $1,500 Total Assessments Land: $2,000 Improvements: $ 0 Total (Gross): $2,000 Total (Net): $2,000 Assessments are based on 2022 payable 2023 St. Joseph County property tax records. J. Municipal Legislative District The Annexation Area will be in the 1st District. K. Hiring Plan This annexation is not anticipated to result in the elimination of jobs for employees of any other governmental entities. The German Township Trustee has been notified of this proposed annexation. Resurrection Lutheran Annexation Area 6 SECTION III. MUNICIPAL SERVICES A. Public Works Sewer – A 36”-diameter sanitary sewer runs along Nimtz Parkway, while a 12”-diameter sanitary sewer runs along Olive Road. Sanitary sewers discharge to a lift station on Nimtz Parkway. Resurrection Lutheran Academy is already connected to the sewer, so the annexation is not expected to impact capacity. Development of the site requires City approval of a drainage plan that meets the City’s requirement to store on site all runoff from developed areas. Connection to the City storm sewer is not permitted. Water - The South Bend Water Works currently has a 16” water main on Olive Road and a 12” water main on Nimtz Parkway. This water main would provide sufficient capacity for the Annexation Area. Resurrection Lutheran Academy is already connected to City water. Extensions of or taps into sanitary sewer and water lines shall be governed by state law and the rules and regulations of the South Bend Water Works and Sewer Utility. The Annexation Area may be subject to system development charges for both water and sewer services. Streets – All or most of the adjoining Nimtz Parkway and Olive Road rights-of-way are already within city limits. The property owner may need to provide sidewalks upon future development. Street Lighting – Nimtz Parkway has street lighting, and one streetlight on Olive Road is adjacent to the annexation area. Should any additional street lighting be necessary, it can be provided on wood poles with overhead wiring through an ongoing contract with Indiana Michigan Power. If the owner wishes to construct and dedicate additional street lighting, especially of a decorative nature or with underground wiring, the City may accept it for maintenance and operation, supported by property tax revenue. Waivers of Annexation – No waivers of right to remonstrate against annexation are in effect for this area. 2022 Actual Budget Report for the Department: Expenditures: $29,003,569 Miles of Roadway in City: @502 Cost per Mile: @$57,776 New Mileage within Area: @0.0 miles (0 feet) Estimated Maintenance Cost for Annexation Area per year: @$0 Resurrection Lutheran Annexation Area 7 B. Police Department The Annexation Area would be added to the existing Beat 22. Police patrols and emergency responses will be part of the services the City will offer to this area. This proposed annexation would require officers to cover a relatively small additional area on this beat. 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 existing beat patrol. The addition of this Annexation Area will not significantly increase response time. The cost for servicing the proposed area is not expected to impact the existing budget of the Police Department with any significance. The patrol costs would be assumed by the Police Department budget. However, this area, as well as all other areas of the City, will continually be monitored for level of service demands and other criteria that would necessitate additional resources through budgetary increases or possible shifting of existing resources, such as a beat restructure. Police services and response time in this area can be expected to be comparable with that found in all other areas of the City. Police coverage to this area could begin immediately upon annexation. Note: The cost of service for this Annexation Area is based on the number of parcels. Household information is provided for comparative purposes. 2022 Actual Budget Report for the Department: Expenditures (including pension cost): $48,612,569 Number of Households in City (2021): @42,707 Cost per Household: @$1,138 Number of Parcels in City (2023): @47,600 Cost per Parcel: @$1,021 Proposed Number of Households in Area: 0 Proposed Number of Parcels in Area: 2 Cost for Annexation Area per year: $2,042 (2 parcels x $1,021 / parcel) Resurrection Lutheran Annexation Area 8 C. Fire Department & EMS Fire Response – The South Bend Fire Department provides a fully staffed, full-time fire department. The Annexation Area will be serviced primarily by Fire Station #11, located at 3505 N. Bendix Drive, approximately 3.2 miles away. Additional Fire Department units would respond from Fire Station #7 at 1616 Portage Avenue, which is approximately 5.5 miles away, and Fire Station #4 at 220 N. Olive Street, which is approximately 5.6 miles away. 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. Fire coverage to this area could begin immediately upon annexation. Adequate water supply will be necessary as any development takes place. Emergency Medical Response – The City will provide emergency medical response to the Annexation Area. This area will be serviced by Medic #11, which is at Fire Station #11, located at 3505 N. Bendix Drive (approximately 3.2 miles away). 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. Emergency medical services are supported by user fees and would be available upon annexation. Note: The cost of service for this Annexation Area is based on the number of parcels. Household information is provided for comparative purposes. 2022 Actual Budget Report for the Department: Expenditures (including pension cost): $41,394,980 Number of Households in City (2021): @42,707 Cost per Household: @$969 Number of Parcels in City (2023): @47,600 Cost per Parcel: @$870 Proposed Number of Households in Area: 0 Proposed Number of Parcels in Area: 2 Cost for Annexation Area per year: $1,740 (2 parcels x $870 / parcel) Resurrection Lutheran Annexation Area 9 D. Neighborhood Services & Enforcement The Annexation Area will be added to Area 5. The Division of Neighborhood Services & Enforcement will be able to provide services to the Annexation Area with comparable response times. The Division 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. 2022 Actual Budget Report for the Division: Expenditures: $7,323,118 Number of Parcels in City (2023): @47,600 Cost per Parcel: @$154 Proposed Number of Parcels in Area: 2 Cost for Annexation Area per year: $308 (2 parcels x $154 / parcel) E. Environmental Services Wastewater Treatment - Wastewater treatment services are supported by user fees and are paid through the Water Works billing system. Solid Waste – Larger scale commercial or industrial customers are generally not served by the Bureau of Solid Waste. However, the Bureau of Solid Waste can provide service to small commercial customers at the prevailing rate at that time for a 96-gallon container with service beginning on the effective date of the annexation. 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 Venues Parks & Arts. 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. Costs for these services have not been calculated. The incorporation of the Annexation Area will not affect the provision of other services currently provided to this property on a countywide basis. The St. Joseph County Health Department, the St. Joseph County Public Library, and the St. Joseph County/South Bend Building Department are among the countywide agencies that will continue to provide the same type and level of services to the Annexation Area. Countywide services will continue to be supported by the County and Township taxes that will remain in effect. Resurrection Lutheran Annexation Area 10 SECTION IV. LAND USE ANALYSIS & DEVELOPMENT CRITERIA This proposed annexation will add two vacant properties to the City of South Bend. The petitioner proposes to use the Annexation Area for an expansion of the parking area for the Resurrection Lutheran Academy, located on adjacent lots already within city limits. The Annexation Area is presently zoned A Agricultural District in unincorporated St. Joseph County. Light industrial uses zoned I Industrial District in the City are located to the north. To the east is wooded land zoned I Industrial District in the City. To the south is vacant land, also owned by the Michiana Lutheran Education Association, zoned S1 Suburban Neighborhood 1 in the City. To the west are vacant lots zoned S1 Suburban Neighborhood 1 in the City. The parcels in the annexation area are property remnants resulting from the expansion of the Nimtz Parkway-Olive Road intersection in the early 2000s. The petitioner proposes expanding the parking and landscaping area to the west of the existing Resurrection Lutheran Academy building and parking lot. Any improvements or future changes must meet the City’s applicable building, zoning, and subdivision ordinances. Resurrection Lutheran Annexation Area 11 SECTION V. 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 parcel(s) must be made in accordance with the standards of the City of South Bend. 4) Required improvements made by the City, if any, will be completed within the time frames provided 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 and land assessment estimates are based on 2022 payable 2023 tax information, assessments of comparable developments, estimates of units built, estimates of unit values and land assessments, and tax abatements or adjustments, if any. Tax rates are subject to change every year, and property tax revenues may be subject to tax caps. 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 may not be required or possibly requested for many years. Hence, the cost of providing services over the first five years should be evaluated with this in mind. BOARD OF PUBLIC WORKS AGENDA ITEM REVIEW REQUEST FORM Date March 6, 2023 Name Michael Divita Department DCI BPW Date March 14, 2023 Phone Extension 5843 Review and Approval Required Prior to Submittal to Board Diversity Compliance and Inclusion Officer Officer Name BPW Attorney Attorney Name Dept. Attorney Attorney Name Aladean DeRose Purchasing Check the Appropriate Item Type – Required for All Submissions Professional Services Agreement Contract Proposal Open Market Contract Amendment/Addendum Special Purchase, QPA Bid Opening Bid Award Req. to Advertise Title Sheet Quote Opening Quote Award Reject Bids/Quotes Proposal Opening C/O & PCA No. PCA Chg. Order, No. Traffic Control Resolution Other: Ease./Encroach Required Information Company or Vendor Name New Vendor Yes If Yes, Approved by Purchasing No MBE/WBE Contractor MBE WBE Completed E-Verify Form Attached Yes No Project Name Project Number Funding Source Account No. Amount Terms of Contract Purpose/Description Adoption of a Fiscal Plan for the Resurrection Lutheran Annexation Area _______________________________________________________________ ____________________________________________________________ For Change Orders Only Amount of Increase Decrease $ ($ ) Previous Amount $ Current Percent of Change: Increase Decrease % ( %) New Amount $ Total Percent of Change: Increase Decrease % ( %) Time Extension Amount: New Completion Date: Resurrection Lutheran Annexation Area 12 TABLE 1 Summary Table – Estimated Fiscal Impact Expenditures Capital (Est.) Non-Capital Per Year (Est.) Notes 5-Year Total Street Construction $0 $0 Sewer Extension $0 Connection at petitioner’s expense $0 Water Extension $0 Connection at petitioner’s expense $0 Street Lights $0 $0 Street Maintenance $0 $0 $0 Police $0 $2,042 $10,210 Fire $0 $1,740 $8,700 Neighborhood Services $0 $308 $1,540 Approximate 5-Year Expenditures $20,450 Revenues Notes Total (Est.) 5-Year Total Property Taxes (to City) Year 1 $0 $0 Year 2 $0 Year 3 $0 Year 4 $0 Year 5 $0 MVH/LRSA Estimated at revenue per mile of $30,210 $0 $0 Approximate 5-Year Revenues $0 While costs are calculated for the two parcels included in the annexation area, this estimate likely vastly overstates the cost to serve it. The parcels are anticipated to be incorporated into the existing Resurrection Lutheran Academy property, which is already in the city limits. The marginal cost to provide services to an expanded site should be negligible. Parcels within the annexation area are presently tax-exempt. Resurrection Lutheran Annexation Area 13 LEGAL DESCRIPTION Part of the East Half of the Northwest Quarter of Section 30, Township 38 North, Range 2 East, German Township, St. Joseph County, Indiana, being more particularly described as follows: Starting at the Northwest corner of the East Half of the Northwest Quarter of Section 30, Township 38 North, Range 2 East (being the intersection of the Cleveland Road/Nimtz Parkway and Olive Road centerlines); thence South 40 feet, more or less, to the South Right- of-Way Line of Nimtz Parkway extended; thence East 20 feet, more or less, to the Point of Beginning, which lies on the South Bend corporate limits; thence East 128.50 feet, more or less, along the South Right-of-Way Line of Nimtz Parkway to the north-south South Bend corporate limits; thence South 390.40 feet, more or less, along the north-south South Bend corporate limits to the east-west South Bend corporate limits; thence West 128.5 feet, more or less along the east-west South Bend corporate limits to the north-south South Bend corporate limits; thence North 390.4 feet along the north-south South Bend corporate limits to the Point of Beginning. Containing 1.15 acres, more or less. Resurrection Lutheran Annexation Area 14 MAP 1