Knowledgebase-Annexation Process and Resolution

Information Product

Title:Annexation Process and Resolution
Summary:MTAS was asked to assist the City of Fayetteville with annexation procedures.
Original Author:Darden, Don
Product Create Date:09/23/2008
Last Reviewed on::09/22/2011
Subject:Annexation; Annexation--Municipal resolutions
Original Document: Resolution Adopting Annexation Process.pdfAnnexation Process.pdf

Reference Documents:

WHEREAS, The City of Fayetteville desires to adopt procedures allowing it to clearly comply with State laws when considering the annexation of territory into the city; and
WHEREAS, the City of Fayetteville also desires that internal procedures be prescribed so that the city board and members of the planning commission can proceed toward consideration of annexation with a clear understanding of their respective roles in the process; and
NOW, THEREFORE, the Board of Mayor and Aldermen of the City of Fayetteville, Tennessee hereby adopts the attached “Annexation Process” shown as Attachment A, attached hereto, it being the desire of the board that all annexations be conducted in accordance with the procedures set forth in the attachment.
Passed and so ordered this the ______day of_______________2008, the public welfare requiring it.

Gwen Shelton

City Recorder
September 23, 2008
Annexation is almost always a contentious process. The home or business owner commonly feels that the city cannot provide services that he/she is not already receiving and does not desire to pay city property taxes on top of county property taxes, which he already pays. His view of annexation is about his situation as a citizen and a taxpayer. It is rarely about the welfare or betterment of the city.
From the city’s perspective, many residents and businesses just outside the city are already receiving city services in the form of water, recreation, and sometimes fire protection services. City services make it possible for the more effluent home owners to build outside the city and enjoy the same urban benefits as city residents without sharing in the cost of those services. In short, they would not be there if it were not for the city.
The city’s primary interest in annexation is to promote orderly growth and development in as efficient a manner as possible. It is cheaper in the long run for all concerned for streets to be installed and maintained properly, for water and sewer lines to be properly sized to avoid the cost of replacement as fire and other services are extended in the future. When the city installs sanitary sewer in a newly annexed area, the city almost always loses money.
1. The city receives a written request for annexation; a petition by residents requesting annexation; or the city of its own initiative determines that the health, safety, and welfare of residents of a territory adjoining the city would be better served by annexation. The city might also determine that it is in the best interest of the city to annex the area. [TCA 6-51-102]. The city might also determine that it does not desire to proceed with the matter of annexation. The best way to deal with this issue is for someone on the city board to move that the city initiate its annexation process. This simply initiates the process and does not mean that the city will annex any given territory. After reviewing the annexation study and required plan of services, the city might well determine that it is not economically feasible to annex the area. Absent this approval the city does not pursue the annexation.
2. If the motion to initiate the process passes, the matter of annexation is then referred by the city administrator to the planning director for study and a recommendation from the planning commission. The planning commission has 90 days to study and review the matter of annexation and is required by law to make a recommendation to the city board. The city board may, at its discretion, and by resolution, grant a longer period for review by the planning commission. The planning staff will prepare the annexation study and plan of services, in coordination with other city staff. [TCA 6-51-107]. The city may not annex territory to which it adjoins without referring the matter of annexation to the planning commission. The city is required to re-initiate the planning process if it amends the map depicting the territory proposed for annexation. The annexation plan of services may be amended, after it has been adopted, only as the result of unusual circumstances and in all cases subject to a public notice and hearing as required by law.
3. Upon completion of the annexation study and plan of services, the city administrator shall prepare, or have prepared, an ordinance annexing the territory proposed for annexation or a resolution for annexation by referendum, if the board chooses to pursue the annexation by referendum, in accordance with TCA 6-51-104,105. The primary advantage of a referendum, provided that 50% + one vote in favor, is that they are not subject to court review. The plan of services should be prepared in resolution form.
4. If after reviewing and considering the annexation study and plan of services, the city board wishes to continue the annexation by ordinance, the board shall enact a resolution authorizing notice of a public hearing on the plan of services to be published in the Elk Valley Times at least 15 days prior to the date of the hearing as well as a notice of the annexation ordinance seven (7) days in advance of a hearing on the ordinance. The notice shall include a map clearly identifying the location of the territory proposed for annexation (with street names and other topographical features). The hearing for the plan of services and annexation ordinance may be held on the same day. Prior to the 15 day notice, the City Administrator shall notify the County Tax Assessor, County School Superintendent, and the State Department of Revenue.
5. The city is required to adopt the plan of services prior to final passage of the ordinance annexing the territory(s).
6. Upon final passage of the annexation ordinance a 30 day appeal period begins. During this time residents of the area being annexed may challenge the legality of the annexation in court. The city is also required, during this 30 day period to:
a. Notify the County Mayor of the annexation, and such notice shall include a copy of the ordinance and a map of the area or areas being annexed.
b. Notify the emergency communication district of the portion of the plan of services dealing with emergency services, and include a map of the annexed area or areas. The map shall identify all public and private streets in the area to be annexed, including street names and direction indicators. The map shall include or have appended a list of address ranges for each street to be annexed. For contested annexation ordinances, in cases in which the city plans to begin providing emergency services in the annexed territory immediately, the city shall notify the district when the annexation becomes final. The required notice to the emergency communication district shall be by certified return receipt mail or other method that assures receipt by the district. [TCA 6-51-119].
c. Notify the Fayetteville Utility Board of any proposed annexation at the same time that the notice for the plan of services is published.
d. If a suit is filed challenging the annexation, the annexation is suspended, and the case is heard by the court according to the annexation law. The city shall notify the County Mayor of the outcome of any litigation regarding the annexation.
e. Upon completion of the 30 day appeal period, if no challenge is initiated, the annexation becomes final, and the city shall:
i. Notify the Tennessee Department of Revenue of the annexation and its boundaries before July 1 so that the department can calculate the annexation date revenue due the county and reallocate local option sales tax collections accordingly after July 1.
ii. Notify beer wholesalers selling beer in the annexed area of the name of each beer retailer in the annexed area to ensure payment of wholesale beer taxes to the city rather than the county, as provided by TCA 57-6-106(i).
iii. Notify franchise holders for city services and other users of formerly county roads that such roads are now city streets.
iv. Take a census of the annexed area in accordance with the regulations of the Local Planning Office of the Department of Economic and Community Development and submit the results to that office before June 1.
7. When petitioned by interested persons, or upon its own initiative, by resolution, the city may propose extension of its corporate boundaries by referendum. The resolution shall describe the territory proposed for annexation, shall be published by posting copies of it in at least three public places in the territory proposed for annexation and in a like number of public places in the city proposing such annexation, and by publishing notice of such resolution at or about the same time in the Elk Valley Times. The resolution shall also include a plan of services for the area proposed for annexation. The plan of services shall address the same services and timing of services as required in TCA 6-51-102. Upon adoption of the plan of services, the city administrator shall forward a copy of the resolution to the Lincoln County Mayor.

At least thirty (30) days after and not more than sixty (60) days after the last of such publications, the proposed annexation of territory shall be submitted by the county election in an election held on the request and at the expense of the City of Fayettevile, for approval or disapproval of the qualified voters who reside in the territory proposed for annexation in accordance with TCA 6-51-105.

Annexed property is placed on the city’s tax role on the January 1 assessment date following the annexation.