2. Greenacres Annexation Discussionof Kalis
Post Office Box 1997 • Kalispell, Montana 59903-1997 • Telephone (406) 758-7700 • FAX (406) 758-7758
REPORT TO: Honorable Mayor and City Council
FROM: PJ Sorensen, Zoning Administrator
Chris Kukulski, City Manager
SUBJECT: Greenacres Annexation
MEETING DATE: November 26, 2001 (workshop)
BACKGROUND: The Greenacres area, although not within the city limits, has developed as an
urban residential area. The City does, in fact, provide utility service to many properties
throughout Greenacres. Additional services could also be efficiently provided to the area by the
City. Furthermore, city employees need to travel through the county in order to serve certain
properties that are within the city, which is clearly an inefficiency. None of that information is
new. The City has realized for quite some time that annexation of Greenacres, while not
necessarily the most popular option among those residents, is in the long-term interest of the City.
Staff has therefore developed a plan for annexation of the area generally bounded by
Woodland Avenue to the north, Willow Glen to the east, Highway 93 and 5" Avenue East to the
west, and the Meadow Park/ABC Addition (south of Kelly Road) to the south (see vicinity map).
Preempt arguments against annexation
Although there are many issues raised by property owners subject to annexation, two
stand out as the most frequent: taxes and horses. Taxes are always an issue. Horses become an
issue at the urban fringe when someone has kept horses or other animals on their property, and
the city code section prohibiting such animals within the city limits suddenly applies. Resolving
both issues will not only help the Greenacres annexation, but future annexations as well.
While we cannot eliminate the fact that a property owner pays more in taxes after
annexation, we can take steps to help mitigate the impact by limiting assessments on large
residential parcels to a level more in line with the standard range of city property sizes. In order
to do so, we can pass an ordinance amending our method of assessments.
Horses have been expressed as a primary concern of several individuals (not mentioned by
anyone in Greenacres, but has been in areas that may be included in future annexations). We can
amend the animal ordinance to allow farm animals when allowed by zoning. Presently, the R-1
zone allows agricultural uses, including animals.
Develop Details for Extension of Services
Under all methods off annexation, services must be provided according to a plan as
specified in Section 7-2-4732, MCA (attached). We can use our existing plan, but should
supplement it with details relating to Greenacres. The various departments have been developing
plans relating to their functions. The Fire Department, for example, has discussed the matter with
the South Kalispell Rural Fire District. Staff should be given direction to fully develop all
necessary details for the required extension of services plan.
Annex Rights -of- Wa
Staff has met with representatives from the County, and they appear willing to transfer the
county rights -of -way to the City. This step is important for several reasons, including the fact that
the City has utility lines within several of the roads, including Kelly Road, South Woodland Drive,
and Woodland Avenue. From an annexation perspective, the rights -of -way will help us wholly
surround a portion of the area we want to annex. Once property is wholly surrounded by land
located within the city limits, the legal process is much simpler, due in large part to the fact that
property owners cannot block the annexation with a majority protest.
We are awaiting information from the County regarding the specifics of their ownership
interests, etc of the rights -of -way. Once we receive that information, the roads can be annexed
and dedicated to the City. At that point, the foundation would be in place for annexing property
under the wholly surrounded method.
Annexation of Property
There are several different methods of annexation: annexation of contiguous land,
annexation of contiguous government land, annexation of wholly surrounded land, annexation by
petition, and annexation with the provision of services. The county rights -of -way would be
annexed as contiguous government land. All other property would be annexed either as wholly
surrounded or as contiguous land.
The principal difference between the wholly surrounded method and the contiguous land
method is the availability of legal protest by the property owners. While property owners clearly
have the right to speak out under either method, the contiguous land process allows property
owners to block an annexation if the majority file formal protests. It is under that process that
"waivers of protest" become an issue.
Staff anticipates a process in which three groupings of property are annexed: (1) the area
bounded by Kelly Road to the south, South Woodland Drive to the east, and the City on the
remaining sides; (2) the area bounded by Kelly Road to the south, South Woodland Drive to the
west, Willow Glen to the east, and the city limits/Woodland Avenue to the north; and (3)
properties to the south of Kelly Road, including Meadow Park and Meadow Park Unit 2.
The first two groupings could be performed under the wholly surrounded method after
annexation of county rights -of -way. Staff proposes two groupings in order to provide the best
legal basis for annexation. Under a Missoula case, annexation of a road provided a basis to
wholly surround an area. In that case, the court listed a number of features of the road which led
to the annexation of the right-of-way. South Woodland Drive is similar in most regards, while
Willow Glen is also similar, but less so than South Woodland. A bifurcation would provide a fall-
back position without creating any problems.
Annexation of the third grouping would occur after the first two. The area would not be
wholly surrounded, so we would have to use the contiguous land method. However, in that area
there are a substantial number of "waivers of protest." The waivers would allow the annexation
of that area to occur. The timing of this step after the wholly surrounded groupings is intentional
in that it allows us to maintain flexibility and provide options as the process unfolds.
RECOMMENDATION: The Council direct staff to initiate the annexation process.
FISCAL EFFECTS: Annual revenue generated by the annexation would equal approximately
$98,000 plus commercial personal property taxes. The average tax increase on a per lot basis
would be about $186.
ALTERNATIVES: As suggested by the Council.
ATTACHMENTS: Vicinity map
Applicable Montana Code Annotated sections
Respectfully submitted,
PJ Sorensen
Zoning Administrator
Chris Kukulski
City Manager
Report compiled November 20, 2001
7-2-4732. Contents of plan for extension of services. (1) Specifically, the plans for the extension
of services shall provide a long-range plan for extension of services and the acquisition of properties
outside the corporate limits. This plan must show anticipated development a minimum of 5 years into the
future, showing on a yearly basis how the municipality plans to extend services, develop and add
sections to the city.
(2) The plans shall:
(a) provide for extending police protection, fire protection, garbage collection, and streets and street
maintenance services to the area to be annexed on substantially the same basis and in the same
manner as such services are provided within the rest of the municipality prior to annexation;
(b) provide for future extension of streets and of major trunk water mains, sewer outfall lines, and
other utility services into the area to be annexed, so that when such streets and utility lines become
necessary and are constructed, property owners in the area to be annexed will be able to secure such
services, according to the policies in effect in such municipality for extending such services to individual
lots or subdivisions;
(c) if extension of streets and water, sewer, or other utility lines into the area to be annexed is
necessary, set forth a proposed timetable for construction of such streets and utility lines.
(3) A method must be set forth by which the municipality plans to finance extension of services into
the area to be annexed. If the area is serviced currently by adequate water and sewage services, streets,
curbs, and gutters and no capital improvements are needed to provide adequate services stipulated by
this section and 7-2-4731, the municipality must provide the area to be annexed with a plan of how they
plan to finance other services to be included within the district —mainly, police protection, fire protection,
garbage collection, street, and street maintenance services, as well as continued utility service.
(4) In this annexation plan, it must be clearly stated that the entire municipality tends to share the tax
burden for these services, and if so, the area may be annexed without a bond issue under the provisions
of this part.
History: En. 11-518 by Sec. 5, Ch. 364, L. 1974; R.C.M. 1947. 11548(part).
Case Notes:
Annexation Without Cost -Benefit Analysis and Resulting Increased Tax Burden Not Unconstitutionat
Kudloff brought an action against the city of Billings, alleging that the city had wrongfully annexed his
property because no cost -benefit analysis had been performed by the city and the annexation would
result in an increase in Kudloff s tax burden. The Supreme Court held that a regulatory taking of property
by a municipality is allowed even if the value of that property and its usefulness is diminished. The
Supreme Court cited Harrison v. Missoula, 146 M 420, 407 P2d 703 (1965), for the proposition that the
levying of future taxes after annexation does not constitute a taking of property. Kudloff v. Billings, 260
M 371, 860 P2d 140, 50 St. Rep. 1108 (1993).
7-2-4733. Vote required on proposed capital improvements. Included within the plan must be
methodology whereby the area to be annexed may vote upon any proposed capital improvements.
Should a negative vote be cast by over 50% of the residents in the section or sections to be annexed in
such election, the area may not be annexed.
History: En. 11-518 by Sec. 5, Ch. 364, L 1974; R.C.M. 1947, 11518(part); amd. Sec. 20, Ch. 250, L. 1979.
7-24734. Standards to be met before annexation can occur. A municipal governing body may
extend the municipal corporate limits to include any area that meets the following standards:
(1) The area must be contiguous to the municipalitys boundaries at the time the annexation
proceeding is begun.
(2) No part of the area may be included within the boundary of another incorporated municipality.
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