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HomeMy WebLinkAboutBill 16-36 Adopting a Written Fiscal Plan and Establishing a Policy for the Provision of Services to an Annexation Area in Portage Township (Cataldo Annexation Area)227 W. Jefferson Blvd. Suite 1400 S. South Bend, Indiana 46601 -1830 April 15, 2016 CITY OF SOUTH BEND PETE BUTTIGIEG, MAYOR COMMUNITY INVESTMENT BRIAN PAWLOWSKI, ASSISTANT EXECUTIVE DIRECTOR Tim Scott, President South Bend Common Council 4th Floor, County -City Building Phone 574/235 -9371 Fax 574/235 -9021 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 Annexation Area in Portage Township (Cataldo Annexation Area) Dear President Scott: I am attaching for filing the above resolution, which is a companion to Bill No. 09 -16. That bill proposes to voluntarily annex contiguous territory in Portage Township to the City of South Bend. This resolution provides for the Common Council's approval and adoption of the written plan and policy concerning the provision of services, both capital and non - capital, to the territory to be annexed. This 12.8 -acre annexation area contains one parcel on State Road 23, northeast of the St. Joseph Valley Parkway. All public improvements, if any, will be required to be done at the expense of the developer. I request that the attached resolution be placed on the April 25, 2016, agenda of the Common Council meeting at which the companion Bill is given Second Reading. I will be attending the meeting, as well as the Zoning & Annexation Committee hearing, as the presenter. If you have any questions, please feel free to contact me at 235 -5843. Thank you. Sincerely, Michael P. Divita Planner Filed in Clerk's Office APR 15 2016 KAREEMAH FOWLER CITY CLERK, SOUTH BEND, IN ADMIN & FINANCE Neighborhood Engagement Economic Resources ELISABETH LEONARD INKS PAMELA MEYER AARON KOBB 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 PORTAGE TOWNSHIP (CATALDO 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 Portage Township, St. Joseph County, Indiana, which is more particularly described at Section I of this Resolution; and WHEREAS, the territory proposed to be annexed encompasses approximately 12.8 acres of land now containing a single family home, which property is at least 12.5% contiguous to the current City limits, i.e., approximately 28.8% contiguous, generally located on the northwest side of State Road 23 northeast of the St. Joseph Valley Parkway (22027 Liberty Highway /State Road 23). It is anticipated that the annexation area will be used for a gas station with convenience store and other commercial uses; and WHEREAS, this development 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, sidewalks, street lighting, a sanitary sewer system, a water distribution system, and a storm water system and drainage plan; and WHEREAS, the South Bend Common Council 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 police and fire protection, 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 or other governmental entities whose jobs will be eliminated by the proposed annexation. 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 Portage Township, St. Joseph County, Indiana be annexed to the City of South Bend: A part of the East Half of the Northeast Quarter of Section 21, Township 37 North, Range 2 East, described as follows: Beginning at a point on the East Line of the East Half of the Northeast Quarter of Section 21, 421.68 feet North of the Centerline of State Road 23; thence South 88 °24' West, 768.80 feet; thence South, 795.81 feet to the Northwesterly right -of -way line of State Road 23; thence Southeasterly, 175 feet, more or less to a point on the Southerly right -of -way of State Road 23; thence Northeasterly along said Southerly right -of -way, 794 feet, more or less, to a point on the East Line of Said East Half, thence North along Said East Line, 470 feet, more or less, to the point of beginning. Containing 12.8 acres more or less. 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 to said territory services of a non - capital nature, such as police and fire protection, 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, sidewalks, 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. The South Bend Common Council, shall and does hereby now establish and adopt the Fiscal Plan, attached hereto 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 and any improvements in sewer or water capacity to be paid for by the developer in compliance with state and local law; that the developer will create a surface water pollution prevention plan and obtain a storm water discharge permit prior to disturbing the land; that the City can provide basic street lighting with expenses for additional or decorative lighting to be paid by the developer with possible maintenance and operation of additional lighting by the City from property tax revenue; and that no new roads or streets will be required. Section IV. Site planning should employ Complete Streets principles; and sidewalks should be provided along public streets and be in compliance with the Americans with Disabilities Act (ADA). 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. Section VI. This Resolution shall be effective from and of the date of adoption by the Common Council. *tj ,�OT At PRQVf� I�IDQPsw Member, South Bend Common Council Filed in Clerk's Office APR 15 2016 KAREEMAH FOWLER CITY CLERK, SOUTH BEND, IN Cataldo 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. Code Enforcement E. Environmental Services F. Administrative Services SECTION IV. LAND USE ANALYSIS & DEVELOPMENT CRITERIA ....................... 11 SECTION V. FISCAL IMPACT .................................................. .............................12 Fiscal Impact: TABLE 1 SECTIONVI. APPROVAL .......................................................... .............................14 LegalDescription ......................................................................... .............................15 Map: MAP 1 ....................................................................... .............................16 Cataldo 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 Portage 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 Investment Department of Administration & Finance SECTION II. GENERAL DATA A. Location The Annexation Area is located on the northwest side of State Road 23, about 1,500 feet northeast of the St. Joseph Valley Parkway (22027 Liberty Highway /State Road 23). See Map 1. B. Legal Description The Annexation Area is part of the East Half of the Northeast Quarter of Section 21, Township 37 North, Range 2 East, in Portage Township, St. Joseph County, Indiana. For a complete legal description, see Page 15. C. Contiguity The Annexation Area is at least 1/8 (12.5 %) contiguous to the current City limits: Contiguous 865.68 feet 28.8% Non - Contiguous 2,139.61 feet 71.2% Total 3,005.29 feet 100% D. Size of Annexation Area The Annexation Area is approximately 12.8 acres in area. Cataldo Annexation Area E. Buildings & Land Use 2 The Annexation Area contains one single - family house on a wooded lot. A gas station with a convenience store and other commercial uses are proposed for the land. F. Zoning & Subdivisions The one property in the Annexation Area is currently zoned "A" Agricultural District in St. Joseph County. With the annexation petition, the petitioner is seeking to rezone the land to "CB" Community Business 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, no residents are proposed to live in the Annexation Area. H. Tax Rate & Impact The tax rates used are those of 2015 payable 2016. The total tax rate for unincorporated Portage Township is 2.9723 per $100 of taxable real estate. The total tax rate for South Bend Portage Township is 6.0672 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 Cataldo Annexation Area I proposed annexation applies, on the political subdivisions in St. Joseph County not part of this annexation, and on taxpayers not part of this annexation. Parcel Ownership & Assessments Parcel Assessed Identification Address Parcel Owner Value Number (Total) 17- 1012 -0310 22027 Liberty Highway Bruno and Rosa Cataldo $189,100 (State Road 23) Total Assessments Land: $ 66,300 Improvements: $122,800 Total (Gross): $189,100 Total (Net): $189,100 Assessments are based on 2015 payable 2016 St. Joseph County property tax records. J. Municipal Legislative District The Annexation Area will be in the 6th District. K. Hiring Plan This annexation is not anticipated to result in the elimination of jobs for employees of any other governmental entities. The Portage Township Trustee has been notified of this proposed annexation. Cataldo Annexation Area 6 SECTION III. MUNICIPAL SERVICES A. Public Works Sewer - A 12 "- diameter sanitary sewer pipe runs along the east side of Renewable Road (formerly New Energy Drive), about 500 feet northeast of the Annexation Area. This pipe has adequate capacity for the Annexation Area but would have to be extended to the western edge of the Annexation Area via a 36" gravity line at the petitioner's cost. 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. The petitioner will also be required to create a surface water pollution prevention plan and obtain a Stormwater Discharge Permit prior to disturbing land. Water- The South Bend Water Works currently has a 10" water main on the north side of Prairie Avenue (State Road 23) that ends near Renewable Road, about 700 feet from the Annexation Area. This water main would need to be extended by the petitioner to the western edge of the Annexation Area but would provide adequate pressure to 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 - No street lighting is currently provided on the streets within the Annexation Area. As necessary, street lighting on wood poles with overhead wiring can be provided through an ongoing contract with Indiana Michigan Power at a capital cost of $5,000 or less. If the developer 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. Streets - No new public streets are proposed as part of this annexation. The only public right - of -way within the Annexation Area is State Road 23, a state highway that will continue to be maintained by the Indiana Department of Transportation. Thus, the City will not have any additional street maintenance expenses, and no additional gas tax reimbursements will be realized. An INDOT permit will be required for any new driveway approaches to private property. The petitioner shall provide curb and sidewalk along the north side of State Road 23. Cataldo Annexation Area 2015 Actual Budget Report for the Department: Expenditures: Miles of Roadway in City: Cost per Mile: New Mileage within Area: Estimated Maintenance Cost for Annexation Area per year $16,966,846 @501.0 @$33,866 @0.00 miles (0 feet) @$0 7 Cataldo Annexation Area 8 B. Police Department The Annexation Area would be added to the existing Beat 25. Police patrols, traffic enforcement, 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 within the beat. 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 as 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. 2015 Actual Budget Report for the Department: Expenditures (including pension cost): Number of Households in City (2010): Cost per Household: Number of Parcels in City (2016): Cost per Parcel: Proposed Number of Households in Area: Proposed Number of Parcels in Area: Cost for Annexation Area per year: $38,915,794 @39,760 @$979 @48,190 @$808 0 1 $808 (1 parcel x $808 / parcel) Cataldo Annexation Area 9 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 #5, located at 2221 Prairie Avenue, approximately 0.7 miles away. Approximate response time for a non - emergency call is one minute. Additional Fire Department units would respond from Fire Station #1 at 1222 S. Michigan Street, which is approximately 2.8 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 development takes place. Emergency Medical Response - The City will provide emergency medical response to the Annexation Area. This area will be serviced by Medic #2, which is at Fire Station #1, located at 1222 S. Michigan Street (approximately 2.8 miles away), and Medic #4 and #5, which are both at Fire Station #4, located at 220 N. Olive Street (approximately 2.7 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. 2015 Actual Budget Report for the Department: Expenditures (including pension cost): Number of Households in City (2010): Cost per Household: Number of Parcels in City (2016): Cost per Parcel: Proposed Number of Households in Area: Proposed Number of Parcels in Area: Cost for Annexation Area per year: D. Code Enforcement $32,662,107 @39,760 @$821 @48,190 @$678 0 1 $678 (1 parcel x $678 / parcel) The Annexation Area will be added to Area 6. 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 Cataldo Annexation Area and dedicated response will be in place within one year of the effective date of the annexation. 2015 Actual Budget Report for the Department: Expenditures: Number of Parcels in City (2016): Cost per Parcel: Proposed Number of Parcels in Area Cost for Annexation Area per year: E. Environmental Services $6,096,903 @48,190 @$127 1 $127 (1 parcel x $127 / parcel) 10 Wastewater Treatment - Wastewater treatment services are supported by user fees, and are paid through the Water Works billing system. Solid Waste - Larger scale commercial customers are generally not served by the Bureau of Solid Waste. However, the Bureau of Solid Waste is able to provide service to small commercial customers at $13.82 per month, or 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 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. 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, the Area Plan Commission, 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. Cataldo Annexation Area 11 SECTION IV. LAND USE ANALYSIS & DEVELOPMENT CRITERIA This proposed annexation will add one single - family house on a large wooded lot to the City of South Bend. The petitioner plans to develop the parcel for commercial uses. The Annexation Area is presently zoned "A" Agricultural District in unincorporated St. Joseph County. A tilled farm field zoned "A" Agricultural District in unincorporated St. Joseph County is located to the north. To the east is a single - family house zoned "A" Agricultural District in unincorporated St. Joseph County. To the south, across State Road 23, is vacant land zoned "SF -1" Single Family and Two Family District in the City of South Bend. To the west is a storage facility zoned "C" Commercial District and tied to a final site development plan in unincorporated St. Joseph County. The Annexation Area is located on Prairie Avenue (State Road 23), northeast of the interchange with the St. Joseph Valley Parkway. The surrounding area has a mix of single - family residential, multifamily residential, industrial, and agricultural uses. The petitioner's proposed development may serve and be in keeping with the commercial and residential development proposed by the Pokagon Band of Potawatomi Indians for land south of the Annexation Area. The petitioner's preliminary site development plan shows a gas station with a convenience store of 2,475 square feet, six other commercial buildings of varying sizes, and parking areas totaling 402 spaces. The overall project would have three driveway approaches to Prairie Avenue. As the site develops, the petitioner should seek to limit parking to what is necessary for business operations. Parking should be shared among the commercial uses proposed. The petitioner should add a 10- foot -wide sidewalk along Prairie Avenue as part of site development, and complete streets principles concerning bicycle and pedestrian connectivity should be exercised in the site's internal layout. To the extent possible, mature trees and other natural features of the Annexation Area should be retained, especially along the site's perimeter. Any improvements or future changes must meet the City's applicable building, zoning, and subdivision ordinances. Cataldo Annexation Area 12 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 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 a combination of 2015 payable 2016 tax information, taxes paid in previous years by comparable development, 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. Cataldo Annexation Area 13 TABLE 1 Summary Table - Estimated Fiscal Impact Expenditures Capital (Est.) Non - Capital Per Year (Est.) Notes 5 -Year Total Street Construction $0 $54,062 Year 2 $0 Sewer Extension $0 Year 4 Connection at petitioner's expense $0 Water Extension $0 Estimated at revenue per mile of $22,700 Connection at petitioner's expense $0 Street Lights $0 $0 Street Maintenance $0 $0 $0 Police $0 $808 $4,040 Fire $0 $678 $3,390 Code $0 $127 $635 Approximate 5 -Year Expenditures $8,065 Revenues Notes Total (Est.) 5 -Year Total Property Taxes (to City) Year 1 $2,886 $54,062 Year 2 $2,886 Year 3 $5,249 Year 4 $5,249 Year 5 $37,792 MVH /LRSA Estimated at revenue per mile of $22,700 $0 $0 Approximate 5 -Year Revenues $54,062 Revenue estimate based on $189,100 net assessment and capped tax rate of 2% of $189,100 gross assessment prior to development; $250,000 net assessment and capped tax rate of 3% of $250,000 gross assessment, first taxable in Year 3; and $1,800,000 net assessment and capped tax rate of 3% of $1,800,000 gross assessment, first taxable in Year 5. Cataldo Annexation Area SECTION VI. APPROVAL Approved by the City of South Bend Common Council this day of 2016. 14 Cataldo Annexation Area LEGAL DESCRIPTION 15 A part of the East Half of the Northeast Quarter of Section 21, Township 37 North, Range 2 East, described as follows: Beginning at a point on the East Line of the East Half of the Northeast Quarter of Section 21, 421.68 feet North of the Centerline of State Road 23; thence South 880 24' West, 768.80 feet; thence South, 795.81 feet to the Northwesterly right -of -way line of State Road 23; thence Southeasterly, 175 feet, more or less to a point on the Southerly right -of -way of State Road 23; thence Northeasterly along said Southerly right -of- way, 794 feet, more or less, to a point on the East Line of Said East Half; thence North along Said East Line, 470 feet, more or less, to the point of beginning, containing 12.8 acres, more or less and subject to easements, covenants, and right -of -way of record. Cataldo Annexation Area MAP 1 Cataldo Annexation Area S CL ca m o� e4 t� - ose�h ' - - - - - -- - _ _ NORTH 0 125 250 500 750 1,000 Q City of South Bend = Cataldo Annexation Area Feet Prepared by City of South Bend Department of Community Investment January23, 2016 16