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Reviewed Date: January 03, 2019
Annexation--Laws and regulations--Tennessee
Requiring Annexation as a Condition for Extending a Utility Outside the City
MTAS was asked about the city entering into an agreement with a land owner/developer requiring annexation as a condition for extending a utility outside the city.
January 26, 2012
Mrs. Janice Casteel, City Manager
City of Cleveland
P.O. Box 1519
Cleveland, Tennessee 37364-1519
Re: Extension of Utilities
Dear Mrs. Casteel
At our January 25 Southeast Tennessee city manager’s meeting you inquired about the city entering into an agreement with a land owner/developer requiring annexation as a condition for extending a utility outside the city. Laverne, Tennessee had and still may have a policy requiring developers/land owners to petition for annexation as a condition for extending water service to the area. This was just a city policy.
MTAS legal consultants’ report that we do not have a court case on point; that it appears that a city may refuse to extend utilities to areas unless the resident/developer agrees to annexation. This is based on national trends and cases from other states that our courts tend to follow with this issue. MTAS recommends that a city just adopt a policy to that effect. There may be some legal issues in entering into contracts concerning annexation in general. A policy would suffice to make this effective.
Please let me know if you have questions or comments.
Municipal Management Consultant
Cc. MTAS Legal Consultant Melissa Ashburn
MTAS Municipal Consultant Margaret Norris