Annexation

An Association of Indiana Counties Perspective

August 22, 2007

David A. Bottorff

Executive Director

Problems

• Cities’ annexation efforts related to tax base and not service delivery needs

• Changes in land use of annexed territory beyond the officially annexed property (fringe)

• Disregard for jointly developed Service Delivery Strategy and Comprehensive Plans

Problems

• Annexing only land and not roadsnot legal but often not challenged

• Cities racing to annex so other cities are landlocked

Problems

• Annexation takes certain revenues away from county government– Income tax dollars– Excise Tax dollars– Road Money

• Annex only commercial land leaving lower AV poverty out

• Cities “stack” annexation, disregarding the intent of the statute. Taxpayers must mobilize, hire an attorney to challenge annexation

Problems

• Increased service delivery and infrastructure costs to county when the county is still providing services

• County remains obligated to finance debt of annexed area.

Framing the Issue

• Leveling the playing field

• Needed to counter the property rights argument advanced by the cities and towns– An unincorporated body’s wish to remain un-

annexed should be given the same consideration as a city’s desire to annex.

Framing the Issue

• Unincorporated property owners have no avenue for relief at the local level other than the courts

Solution

Is Annexation a problem everywhere in Indiana?

No, most counties and their cities work together for the benefit of all citizens, but the problem is growing as cities/towns search for more revenue.

Why is it so difficult to get county officials involved in dealing with the issue?

We believe there are several reasons:

Summary

• Some commissioners/councilors who represent incorporated areas view their role as representing the city government rather than the citizens in county matters.

• Problems often develop very quickly. Intergovernmental relations between a county and city are sometimes only stable until the next election.

Summary

Solutions

• Arbitration Panel– Clear all proposed annexations through a

panel that will give all citizens affected a voice– Consisting of a representative of the City, the

County, and the Department of Local Government Finance.

– Ensure that money that is shifted due to an annexation is in proportion to the services lost by the other units and now performed by the city.