04/09/1986 Meeting (2) - Laserfiche WebLink

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e Jim Carlson of the Planning Department said the components of the annexation program are (1) assistance for property owner initiated annexations, (2) an urban transition package, and (3) a City information program. He said the City's annexation program does not preclude citizen-initiated annexation proposals which include a vote by River Road-Santa Clara residents. He said a tax differential program is a key element of the urban transition package, and the reasons why the status quo cannot be maintained will be stated in the information program. Mr. Carlson summarized information in a memo dated April 9, 1986, to the Mayor and City Council from the Planning Department. The memo was titled "City Annexation Program" and was attached to the council agenda. Discussing the cost of incorporation of a new city in the River Road-Santa Clara area, he said it is hard to know what level of services would be provided by a new city. In 1983, the tax rate for city services including a sanitary sewer system and capital improvements in a new city was estimated at almost $24.00 per thousand assessed valuation. That tax rate would be about three times the existing tax rate in Eugene. He said operating costs have increased about 23 percent in similar sized cities since 1983. He said existing debts which a new city would have to assume include their portion of the sewage treatment plant and the trunk sewer system. They would necessitate charges of $570 per household, but properties which are annexed will not be charged for existing debts. e Mr. Carlson displayed a graph which indicated that the cost of annexations to the City and the revenues received from annexations are incremental and eventually are about equal. He said the annexation of developed property is beneficial to the City because it increases the tax base. Development on properties within the city does not increase the tax base. e Ms. Brody said the city will receive about $50,000 in additional revenue from annexations that have occured this year. If 15 percent of the households in the River Road-Santa Clara area are connected to the sewer system in the next two years, the City will receive about $234,000 in FY88 and about $700,000 in FY89. She said that providing services to newly annexed areas involves all departments of the City. The Planning and Public Works departments will be involved at the front end in processing annexation proposals. They will present an estimate of $105,000 to the Budget Committee for start-up costs of the annexation program. She said much of the money will be spent replying to citizen requests. Responding to a request from Mayor Obie, Mr. Ball said Lane County and Eugene and Springfield have established a solid framework for the proposed annexation program. He said it is consistent with the policies in the Metro Plan which indicate that the cities will provide urban services, with the work of the Urban Services POlicy Committee which considered an informational program about annexation this morning, and with the Lane County and Eugene agreement with the Department of Environmental Quality (DEQ) when the River Road/Santa Clara sewer grant was approved. He said the River Road/Santa Clara area has been a controversial issue for forty years, and it must be addressed now. He said County officials will want to discuss some details of the program with City officials. MINUTES--Eugene City Council April 9, 1986 Page 4