Annexation: When you look at city’s plan, answers don’t add up

Published 12:00 am Friday, March 28, 2008

By Harold Poole
For the Salisbury Post
The following questions and answers attempt to help analyze the proposed annexation of the Mooresville Road/N.C. 150 area.
1. Comparatively speaking, is this a large annexation?
Yes, both in area and population. In area, it would increase Salisbury’s size by 15.1 percent ó from 21.47 square miles to 24.71. That would be the second-largest annexation in the city’s history. Of the city’s 128 annexations (114 since 1959, when the state’s reformed annexation laws were enacted), only the 1975 annexation of about 3.7 square miles (the area primarily east of I-85) has been larger. The current proposed 3.24 square miles is larger than most of the county’s towns. The 1,699 population gain (5.5 percent increase, from 30,642 to 32,341) is larger than Faith and Cleveland combined.
2. After the last failed annexation of part of this area, didn’t the city say it would only consider annexing small areas?
Yes, both the city manager and City Council repeatedly said it would be in Salisbury’s best interest to annex small areas and not attempt to annex large areas. This is one of many contradictions between what city officials say and what they actually do.
3. What does the city’s Vision 2020 Plan say about this matter?On page one, the report complains about “the rising cost of city services in the face of inefficient sprawling growth patterns.” Currently, the city has 1,427 people per square mile. The proposed annexation area has 524 people per square mile, which would reduce the city’s density to 1,309 people per square mile. This is more urban sprawl. It sprawls southeast from Mooresville Road over 1.5 miles to near South Main Street.
4. Why not just annex west along N.C. 150?
It wouldn’t qualify. As well as having many undeveloped lots between Candlewick Drive and Rowan Mills Road/Sherrills Ford Road, the state statutes require at least one-eighth of the boundary to be contiguous to the primary city limits. This criterion could not be met.
5. Isn’t there a lot of undeveloped land between U.S. 29 and N.C. 150 that’s in the annexation area?
Yes, but state annexation laws ó specifically G.S. 160A-48(d) ó allow a city to “jump over” these undeveloped areas (which planners refer to a “land bridges”) to reach other developed areas. In this proposed annexation, two such areas are proposed. These two areas have a total of 19 parcels and 429.7 acres. The Mooresville Road annexation is only possible because of this subsection (d), as it’s called. The 429.7 acres of undeveloped land isn’t even used in any density calculation, causing additional urban sprawl.
6. A map of southwest Salisbury shows six areas, including about 15 lots, which are not inside the city, yet adjoin city limits on all sides. How can this be?
You need to ask city officials. It looks like some people are not paying city taxes. These areas, known as “doughnut holes,” have been skipped in the annexation process. It seems they should be filled in before further annexations occur. If the city wants to annex, why not annex these areas and/or the city’s 318-acre community park off Hurley School Road?
7. What is the extraterritorial jurisdiction (ETJ) and does it include the N.C. 150 area under consideration for annexation?
A city’s ETJ (set up under state law) is essentially that area beyond the city limits which the city may be expected to grow into, or annex. The city’s Planning Board and Zoning Board of Adjustment both have ETJ members since the city exercises zoning and subdivision regulations in this area. Of the subdivisions in the proposed annexation area, the city’s ETJ only extends over Woodbridge Run and Westmont. The ETJ line stops before the entrance to Summerfield. So Summerfield, Windmill Ridge, Glen Heather, Hidden Hut, Homestead Hills and Neel Estates all have county zoning and subdivision controls.
8. What are the estimated start-up and annual costs for major services (other than water and sewer)?
Looking at fire, police and solid-waste management, fire protection would be $51,410 start-up cost and $246,962 annual cost, according to the city’s annexation report. The city would attempt to contract with Locke Volunteer Fire Department for a five-year period, in accordance with G.S. 160A-47(4). Police protection would be $182,748 start-up cost and $222,740 annual cost. Solid waste management would include $4,554 start-up cost and $165,905 annual cost ó primarily through contracts with private haulers. The $648,572 expected to be received from area taxpayers would barely cover annual fire, police and solid waste costs.
9. How far is the closest fire station?
The farthest point in Neel Estates is almost exactly 5 miles from the U.S. 29 Fire Station. The question is whether Salisbury can maintain its excellent “2” fire rating when a residence is 5 road miles from the nearest city fire station. We are jeopardizing our fire rating. At some point, we will need to build a new fire station. The annexation report has conveniently failed to mention this fact. Based on recent costs for the new U.S. 70 fire station, it is not unreasonable to estimate the start-up cost for a new station along or near N.C. 150, including land, construction, equipment and associated costs, will exceed $2 million.
10. What happens to streets in the annexation area?
N.C. 150 and Neel Road would remain under the N.C. DOT. That’s a good thing, considering the city’s recent history with thoroughfares and what the city did to Brenner Avenue and Sunset Drive. So the state will continue to control those 2.82 miles, which is the total distance this annexation covers along N.C. 150 and Neel Road. Subdivision streets, as well as other streets, totaling 16.65 miles, will become city streets. Many of these do not meet city street standards or subdivision standards. The annexation report shows $310,481 start-up costs (salaries, fringe benefits for street maintenance workers) and $122,437 annual expenses. For the 16.65 additional miles, the city will receive $74,096 annually in Powell Bill funds from the state.
11. What does the Salisbury 2020 Plan say about streetscape improvements in newly annexed areas?
Policy CE-2 (page 161) reads: “As the city limits expand, streetscape improvements shall be extended accordingly.” With the additional Powell Bill funds and other monies, the city could work with N.C. DOT to provide much-needed left-turn lanes at the entrances to subdivisions, at Carillon Assisted Living and at other key intersections.
12. What are the total expected annual revenues and expenditures?
The report shows revenues as $1,136,823 ($648,572 from property taxes) and expenditures at $1,103,235. We now know there was an error in the tax rate, which reduces the revenue figure. Instead of $33,588 on the plus side, we have a figure that will be on the minus side. Plus, there’s the $570,632 in start-up costs.
13. What about water and sewer revenues and expenditures?
Start-up water costs (water lines along N.C. 150 and Neel Road) are estimated to be $1,800,000. This does not include extensions to the houses in the subdivisions and elsewhere, which could increase the $1.8 million by 25 percent, 50 percent or 100 percent. We just don’t know. Start-up sewer costs (a sewer line along Draft Branch) are estimated to be $2.5 million. Again, this doesn’t include extensions to houses and other places, which could increase the figure dramatically. The estimated annual expenses would be $321,885 ó mostly from debt-service payments.
The report estimates that there will be 38 new customers (between 5 and 6 percent of the houses in the annexation area) for an expected annual revenue of $28,445 ($62.38 per month per customer). To make up the deficit, the report shows $293,439 would be moved from the general fund.
14. Who should oppose this annexation?
Not only those people in the proposed area, but everyone who pays city taxes. Start-up costs alone could cause the city tax rate to go up between 2 and 3 cents. Expenditures generally increase even more than projected. It now appears that annual expenditures will exceed revenues, further causing an increase in city taxes. We may also expect an increase in water/sewer rates as a result of this annexation. So not only should Salisbury taxpayers oppose this annexation, but all Salisbury Rowan-Utility customers from around the county should oppose it. (Note: I do not live in or near the proposed annexation area, but I own property in Salisbury and pay for water/sewer, as well as city taxes.)
15. So why annex?I don’t have the answer. The proposed annexation has strong opposition and won’t pay for itself. It may qualify under state statutes, but that doesn’t mean a city is forced to annex.
In conclusion, I oppose this annexation due to the facts. I do not want an increase in my city taxes to pay for this annexation. Likewise, I do not want to have an increase in my water/sewer bill to pay for this annexation.