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HomeMy WebLinkAboutResolution No 21-2024 - Establishing Provision of Services for Fox Creek Annexation AreaRESOLUTION NO. 21-2024 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 CLAY TOWNSHIP (FOX CREEK 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 Clay 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 7.5 acres of vacant land, which property is at least 12.5% contiguous to the current City limits, i.e., 57.9% contiguous, generally located at the northwest corner of Hepler Street and Hickory Road (17023 Hepler Street). It is anticipated that the annexation area will be used for residential development, primarily in the form of duplexes; 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 13 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 public streets will be required. Section IV. To the extent required by the City, 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 13th. day of August, 2024. August 13, 2024 Exhibit “A” THE CITY OF SOUTH BEND FISCAL PLAN FOX CREEK A NNEXATION AREA Prepared by City of South Bend Department of Community Investment July 29, 2024 Fox Creek 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 Fox Creek 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 Clay 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 northwest corner of Hepler Street and Hickory Road (17023 Hepler Street). See Map 1. B. Legal Description The Annexation Area is part of the Southeast Quarter of the Northeast Quarter of Section 32, Township 38 North, Range 3 East, Clay 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 1,815 feet 57.9% Non-Contiguous 1,320 feet 42.1% Total 3,135 feet 100.0% D. Size of Annexation Area The Annexation Area is approximately 7.5 acres. Fox Creek Annexation Area 4 E. Buildings & Land Use The Annexation Area contains vacant land. A development of 41 housing units, primarily in the form of duplexes, is proposed for the land. F. Zoning & Subdivisions The one property in the Annexation Area is currently zoned R Single Family District in St. Joseph County. With the annexation petition, the petitioner seeks to rezone the land to U2 Urban Neighborhood 2 District 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, an estimated 60 residents would live in the Annexation Area. H. Tax Rate & Impact The tax rates used are those of 2023 payable 2024. The total tax rate for unincorporated Clay Township is 2.5281 per $100 of taxable real estate. The total tax rate for South Bend Clay Township is 5.3384 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. Fox Creek Annexation Area 5 I. Parcel Ownership & Assessments Parcel Identification Number Address Parcel Owner Assessed Value (Total) 002-2023-055001 17023 Hepler Street Fox Creek LLC $28,700 Total Assessments Land: $22,200 Improvements: $ 6,500 Total (Gross): $28,700 Total (Net): $28,700 Assessments are based on 2024 payable 2025 St. Joseph County property tax records. J. Municipal Legislative District The Annexation Area will be in the 4th District. K. Hiring Plan This annexation is not anticipated to result in the elimination of jobs for employees of any other governmental entities. The Clay Township Trustee has been notified of this proposed annexation. Fox Creek Annexation Area 6 SECTION III. MUNICIPAL SERVICES A. Public Works Sewer – An 8”-diameter sanitary sewer runs along Creekbottom Drive to the west edge of the development site. The petitioner has the responsibility to extend gravity public sewer main and to ensure that the downstream lift station on Creekside Drive has adequate capacity. Development of the site requires City approval of a drainage plan that meets the City’s requirement to store all runoff from developed areas. No public municipal storm sewer is available to the site. Retention basins and low-impact means to promote infiltration of surface water will be required. The site is near Juday Creek. Water - The South Bend Water Works currently has a 6” water main on Creekbottom Drive. The petitioner has the responsibility to extend a minimum 8” water main to serve the development. 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 – Annexation would add approximately 247.5 feet of the northern portion of the Hepler Street right-of-way and the western half of a Hickory Road right-of-way that has no pavement to the city limits. The petitioner will dedicate farther a west half right-of-way of Hickory Road to allow for its future extension northward. The preliminary development plan includes private streets internal to the development. The petitioner may need to provide sidewalks along Hepler Street upon development. Street Lighting –Should any street lighting be necessary, it can be provided on wood poles with overhead wiring through an ongoing contract with Indiana Michigan Power. If the petitioner 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, if done to City standards. Waivers of Annexation – No waivers of right to remonstrate against annexation are in effect for this area. 2023 Actual Budget Report for the Department: Expenditures: $36,313,657 Miles of Roadway in City: @502 Cost per Mile: @$72,338 New Mileage within Area: @0.0 miles (0 feet) Estimated Maintenance Cost for Annexation Area per year: @$0 Fox Creek Annexation Area 7 B. Police Department The Annexation Area would be added to the existing Beat 11. 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 of 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. 2023 Actual Budget Report for the Department: Expenditures (including pension cost): $54,441,986 Number of Households in City (2022): @41,488 Cost per Household: @$1,312 Number of Parcels in City (2024): @47,400 Cost per Parcel: @$1,149 Proposed Number of Households in Area: 41 Proposed Number of Parcels in Area: 42 Cost for Annexation Area per year: $48,258 (42 parcels x $1,149 / parcel) Fox Creek 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 #3 at 1805 McKinley Avenue, which is approximately 2.7 miles away. Additional Fire Department units would respond from Fire Station #9, located at 2108 Mishawaka Avenue, approximately 3.5 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 on the edge 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. Two to three extra fire hydrants will likely be needed to cover this area. Emergency Medical Response – The City will provide emergency medical response to the Annexation Area. This area will be serviced by Medic #9, which is at Fire Station #9 at 2108 Mishawaka Avenue (approximately 3.5 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. 2023 Actual Budget Report for the Department: Expenditures (including pension cost): $44,998,334 Number of Households in City (2022): @41,488 Cost per Household: @$1,085 Number of Parcels in City (2024): @47,400 Cost per Parcel: @$949 Proposed Number of Households in Area: 41 Proposed Number of Parcels in Area: 42 Cost for Annexation Area per year: $39,858 (42 parcels x $949 / parcel) Fox Creek Annexation Area 9 D. Neighborhood Services & Enforcement The Annexation Area will be added to Area 6. 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. 2023 Actual Budget Report for the Division: Expenditures: $7,732,302 Number of Parcels in City (2024): @47,400 Cost per Parcel: @$163 Proposed Number of Parcels in Area: 42 Cost for Annexation Area per year: $6,846 (42 parcels x $163 / 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 – The Bureau of Solid Waste can provide service to residential customers at the prevailing rate at that time (currently $15.78 for a one-family dwelling and $24.74 for a two- family dwelling) 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. Fox Creek Annexation Area 10 SECTION IV. LAND USE ANALYSIS & DEVELOPMENT CRITERIA This proposed annexation will add one vacant property to the City of South Bend. The petitioner proposes to subdivide the land for residential uses. The Annexation Area is presently zoned R Single Family District in unincorporated St. Joseph County. A vacant parcel, zoned S1 Suburban Neighborhood 1 in the City, is located to the north. To the east is a vacant parcel zoned R Single Family District in the County and vacant parcels zoned R-4 Manufactured Home Residential in the City of Mishawaka. To the south is a church zoned S1 Suburban Neighborhood 1 in the City. To the west are one-unit residential dwellings and a vacant parcel zoned S1 Suburban Neighborhood 1 in the City. According to a preliminary site plan, the petitioner proposes to construct 41 housing units, primarily in the form of duplexes, accessed via private drives. Any improvements or future changes must meet the City’s applicable building, zoning, and subdivision ordinances. Fox Creek 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 2023 payable 2024 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, are 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. Fox Creek 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 $48,258 $241,290 Fire $0 $39,858 $199,290 Neighborhood Services $0 $6,846 $34,230 Approximate 5-Year Expenditures $474,810 Revenues Notes Total (Est.) 5-Year Total Property Taxes (to City) Year 1 $619 $199,693 Year 2 $33,179 Year 3 $33,179 Year 4 $66,358 Year 5 $66,358 MVH/LRSA Estimated at revenue per mile of $33,234 $0 $0 Approximate 5-Year Revenues $199,693 Revenue estimate based on $32,700 net assessment and capped tax rate of 3% of $32,700 gross assessment in Year 1, $2,424,000 net assessment and capped tax rate of 1% of $5,000,000 gross assessment in Years 2 and 3, and $4,848,000 net assessment and capped tax rate of 1% of $10,000,000 gross assessment in Years 4 and 5. Fox Creek Annexation Area 13 LEGAL DESCRIPTION A part of the Southeast Quarter of the Northeast Quarter of Section 32, Township 38 North, Range 3 East, Clay Township, St. Joseph County, Indiana, being more particularly described as follows: Beginning at the southeast corner of said Southeast Quarter, also being the intersection of the centerlines of Hepler Street and Hickory Road; thence west along the centerline of Hepler Street 247.5 feet to the east line of the Creekwood Villas subdivision extended south, also being the north-south South Bend city limits; thence north 1,320 feet to the east-west South Bend city limits; thence east 247.5 feet to the east line of said Section 32; then south 1,320 feet to the point of beginning. Containing 7.5 acres, more or less. Fox Creek Annexation Area 14 MAP 1 BOARD OF PUBLIC WORKS AGENDA ITEM REVIEW REQUEST FORM Date August 5, 2024 Name Michael Divita Department DCI BPW Date August 13, 2024 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 Tom Panowicz 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 Fox Creek 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: