CED Annexation Policy Plan 1992 - Laserfiche WebLink

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C. DEPARTMENT OF ADMINISTRATION AND FINANCE I. Services Provided The Department of Administration and Finance presently operates under six management divisions. These are Finance, Human Resources, Parking, Risk Management, Purchasing and Human Rights, all of which are under the direction of the City Controller. 2. Annexation Responsibilities A primary component of an annexation by the City Council is the required fiscal plan. The fiscal plan should not only be analyzed for its immediate financial requirements of the annexation, but should also be evaluated for its possible impact upon the City's funding mechanism as related to other City needs and planned projects, including long-range budget impacts. A wide range of questions involving this department are raised. Will the funds for capital improvements needed to support the annexation deplete other funds or funding sources to the point where other needed projects or programs can no longer be funded? What are options for the purchase or lease of needed equipment or vehicles? What effects will annexation have on the City tax rate and levy? How will debt payments to townships be handled? How can the use of tax impoundments, abatements, special assessments or other incentives be used in developing an annexation fiscal plan? What effects will there be upon medical insurance, vacation and sick pay, unemployment compensation and other fringe benefits if annexations require additional department staff? These considerations indicate the need for a staff position in the Department of Administration and Finance, should the City proceed with a major annexation program. While this position does not presently exist, its functions could also have a positive impact for regular City budget matters. Whether or not this position is created, the fiscal plans for annexation as developed for input from the various City departments should be reviewed by the Controller's office for completeness and impact upon the total City fiscal resources. The Finance Division should be expected to provide advice and guidance to optimize the various funding sources available. Barrett Law is a funding mechanism that could be used for constructing certain infrastructure improvements for annexation. The Barrett Law clerk could be expected to see increased work if this funding option is used for any annexations. The City presently has one full-time and one part-time Barrett Law clerks. Future use of Barrett Law funding for annexation could fully utilize these staff positions. 28