Joint Legislative Study Commission on Municipal Annexation (JLSCoMA) recommendations

Policy Proposals for Consideration

Joint Legislative Commission on Municipal Annexation January 22, 2009

I.          Procedure Issues

A.        Direct the Local Government Commission to provide oversight of the municipal annexation process by, for example: (1) assessing the fiscal feasibility of all proposed annexations, and by (2) prohibiting further annexation by cities that do not provide services as provided in their annexation plan.

 B.         Insure notice to those affected by a proposed annexation by requiring more detailed notice, by certified mail.

II.        Water and Sewer Related Issues

 A.        If water and sewer are financed by assessments, require that assessments be phased-in in increments over 4-5 years, and then provide a 20 year repayment period after complete phase in.

B.         Providing water and sewer would be automatic - property owners would not be required to request the provision of water and sewer. Cost of providing the service to the property line is to be paid for by the municipality. [amended to require 45-day period to request water/sewer]

III.       Qualification of Annexation Areal Annexing Municipality

A.        Annex areas that are "urban in nature" For example: (1) change the density requirement to 2.5 persons per acre; and change the "use and subdivision" standard to 65% of lots used for urban purposes (raise from 60%) and at least 60% of the remaining lots be no more than two acres (down from 3 acres) 

C.         Prohibit involuntary annexation into an area already served by a central water and sewer system unless there is 50% agreement of property owners.

D.        Curtail use of "shoe-string" annexations  Past annexations       Future annexations

E.         Prohibit splitting neighborhoods and subdivisions along individual lot property lines -either annex all or none of a subdivision.

IV.       Distressed areas/Doughnut holes 

Contiguous         Non-contiguous
 A.        It is proposed that Part 1 (Extension by Petition or Voluntary Annexation) and Part 4 (Extension of Noncontiguous Areas or Satellite Annexation) of Article 4A of Chapter 160A of the General Statutes be amended to facilitate the annexation of low-income areas. Presently, a petition from 100 percent of the property owners in the area proposed for annexation is required. The amendment would allow annexation to occur upon submission of a petition from 75 percent of the resident households in the area proposed for annexation, provided 50 percent or more of the households in the area to be annexed have incomes that are 200 percent or less than the most recently published United States Census Bureau poverty thresholds. For example, according to the most recently published U.S. Census Bureau figures (2007), the poverty threshold for a family of two adults and two children is $21,127. 

V.        Tax-related Issues

A.        The Local Government Commission should have the authority to abate all taxes if all services not in place within 5 years after the annexation effective date.

VI.       Other

 B.         Prohibit new or changed municipal zoning regulations for any annexed farms that qualify for the present use value for taxation purposes for so long as the farm qualifies for present use value.

VII. Moratorium

 A.        Enact a moratorium until the current annexation laws are revised.

VIII. Vote

Call for vote     Vote in Area only      Vote-City and Area: Combined     Vote-City and Area-Separate votes     Protest Petition Method     Protest Petition w/Vote
A.        Allow a vote of only the citizens, within the area targeted, for or against the proposed annexation.

FAC suggestions

Part 1-Voluntary annexations-Contiguous:

<>Change city clerk to county clerk investigating annexation petition

<>Redefine 'contiguous' so that earlier shoestring annexations cannot be used

<>Add same protection for Rural Fire Departments found in involuntary annexation

Part 2-Involuntary Annexations-less than 5,000 (Repealed)

Part 3-Involuntart Annexations-(formerly for larger than 5,000)-amended to encompass all cities

<>Add 'meaningful' to state policy

<>Strike subsection making distinction between city sizes

<>Add precondition to ability to annex: comprehensive land use plan and qualified planning staff

<>Add 'meaningful' as a prerequisite to annexation

<>Provide for water/sewer infrastructure throughout area

<>Add 'storm drainage' to short list of municipal services

<>Expedited Request Form must be approved by LGC

<>'Not economically feasible' determined by MBB

<>Estimate the cost of water/sewer lines throughout the area

<>Repeal limitation on changing financial participation

<>Strike allowing use of subsection d subareas

<>Prohibit the use of satellite annexations in establishing contiguity

<>Change contiguity standard to fifty percent (50%)

<>Strike d subarea standard

<>Deannex

<>Refund taxes after deannnex

<>Allow jury trial

<>Drop 'remand' from outcome of review

<>Added definitions

Part 4-Voluntary Noncontiguous Annexations

<>Cities 'shall' provide services

<>Added 'landowners' to those allowed to petition at 75%

<>Joint Planning required when exempted from 10%

<>Must use property lines, not metes and bounds

<>Must annex highways too

<>MBB must investigate validity of petition

<>Expand standing to 1/4 mile of annexation area

<>Add protections for Rural Fire Departments

<>Further define protections for Rural Fire Departments

<>Replace wording where referenced statute was repealed

Draft Language

Explanations

Article 4A.

Extension of Corporate Limits

Part1. Extension by Petition

§ 160A-31.  Annexation by petition.

(a1)            Notwithstanding subsection (a) of this section, the governing board of any municipality may annex by ordinance any area contiguous to its boundaries upon presentation to the governing board of a petition signed by at least seventy-five percent (75%) of the resident households or landowners or combination thereof within such area, provided fifty percent (50%) or more of the households in the area to be annexed have a total household income that is two hundred percent (200%) or less than the most recently published United States Census Bureau poverty threshold. For the purposes of this subsection the petitioner may be either a resident-owner in real property of the lot or resident-renter in contract to the lot.

(b)       The petition for subsection (a) of this section shall be prepared in substantially the following form:

DATE:           

To the ______________ (name of governing board) of the (City or Town) of ______________

    1. We the undersigned owners of real property, respectfully request that the area described in paragraph 2 below be annexed to the (City or Town) of______________

    2. The area to be annexed is contiguous to the (City or Town) of ________ and the boundaries of such territory are as follows:

(b1)       The petition for subsection (a1) of this section shall be prepared in substantially the following form:

DATE:           

To the ______________ (name of governing board) of the (City or Town) of ______________

    1. We the undersigned resident households respectfully request that the area described in paragraph 2 below be annexed to the (City or Town) of______________

    2. The area to be annexed is contiguous to the (City or Town) of ________ and the boundaries of such territory are as follows:  

PROBLEM: Because some lots have uncertain ownership or multiple owners (after inheritance), obtaining 100% of the signatures needed for voluntary annexation is difficult if not impossible.

RECOMMENDATION: Provide for RESIDENTS of economically depressed area to annex into a municipalities so that the area might receive services.

PROS: Ownership of lot/tract is not a factor

CONS: 

1. Does not really address the issue of why cities bypass economically depressed areas in the first place.

2. Does not mandate that cities must annex area when petitioned. But Indiana has a statute that can force a city to accept an annexation petition.

3. Does not address the affordability of sewer/water infrastructure installation; the primary reason these areas are not annexed in the first place.

4. Proving resident status

5. Landowners will be obligated to pay assessments even though the renter facilitated the annexation. Would the landlord tolerate this? Are evictions likely?

Added: "or landowners"-Allows landowners the same ability to annex that is given resident households.

There are no safeguards to prevent a city clerk from falsely certifying a petition.

(d)       At the public hearing all persons owning property or residents in the area to be annexed who allege an error in the petition shall be given an opportunity to be heard, as well as residents of the municipality who question the necessity for annexation.  The governing board shall then determine whether the petition meets the requirements of this section.  Upon a finding that the petition meets the requirements of this section and approved, when required pursuant to G.S. 160A-58.50, the governing board shall have authority to pass an ordinance annexing the territory described in the petition.  The governing board shall have authority to make the annexing ordinance effective immediately or on any specified date within six months from the date of passage of the ordinance.

(f)        For purposes of this section, an area shall be deemed "contiguous" if, at the time the petition is submitted, such area either abuts directly on the municipal boundary or is separated from the municipal boundary by a street or street right-of-way, a creek or river, or the right-of-way of a railroad or other public service corporation, lands owned by the municipality or some other political subdivision, or lands owned by the State of North Carolina.  No lot or tract will be considered contiguous if its only relation to the boundary of the city is a highway, road, river, or lake or a single point. In describing the area to be annexed in the annexation ordinance, the municipal governing board may include within the description any territory described in this subsection which separates the municipal boundary from the area petitioning for annexation. 

Cities  are required to submit to LGC oversight.

(f) Deleted 'or river': Rivers are wide bodies of water, The ability to serve is more important than whether a lot is on the other side of a river.

(f) No lot or tract will be considered contiguous if its only relation to the boundary of the city is a highway, road, river, or lake or a single point.

This prevents lots from being subjected to annexation when it is only contiguous to shoestring or balloon annexations. Shoestrings are not permitted by common (case) law but has been a common practice by many cities (Four Oaks, Cary, Shallotte, Ayden). Currently, the practice can not be stopped because no one has ever had standing to challenge a city when it annexed state highways.

§ 160A-31.1.  Assumption of debt. [Needs to be amended to help FD get reimbursed when they are full responders]

(a)       If the city has annexed under this Part any area which is served by a rural fire department and which is in:

(1)       An insurance district defined under G.S. 153A-233;

(2)       A rural fire protection district under Article 3A of Chapter 69 of the General Statutes; or

(3)       A fire service district under Article 16 of Chapter 153A of the General Statutes,

then beginning with the effective date of annexation the city shall pay annually a proportionate share of any payments due on any debt (including principal and interest) relating to facilities or equipment of the rural fire department, if the debt was existing at the time of submission of the petition for annexation to the city under this Part.  The rural fire department shall make available to the city not later than 30 days following a written request from the city, information concerning such debt.  The rural fire department forfeits its rights under this section if it fails to make a good faith response within 45 days following receipt of the written request for information from the city, provided that the city's written request so states by specific reference to this section.

(b)       The annual payments from the city to the rural fire department on such shared debt service shall be calculated as follows:

(1)       The rural fire department shall certify to the city each year the amount that will be expended for debt service subject to be shared by the city as provided by subsection (a) of this section; and

(2)       The amount determined under subdivision (1) of this subsection shall be multiplied by the percentage determined by dividing the assessed valuation of the area of the district annexed by the assessed valuation of the entire district, each such valuation to be fixed as of the date the annexation ordinance becomes effective.

(c)       This section does not apply in any year as to any annexed area(s) for which the payment calculated under this section as to all annexation ordinances adopted under this Part by a city during a particular calendar year does not exceed one hundred dollars ($100.00).

(d)       The city and rural fire department shall jointly present a payment schedule to the Local Government Commission for approval and no payment may be made until such schedule is approved.  The Local Government Commission shall approve a payment schedule agreed upon between the city and the rural fire department in cases where the assessed valuation of the district may not readily be determined, if there is a reasonable basis for the agreement. (1989, c. 598, s. 2.)

SOLUTION: Use the same criteria for VOLUNTARY annexations that are used for FORCED annexations. The end result, so far as the fire department is concerned, is the same.

 Part 2. Annexation by cities of Less than 5,000

 REPEALED

There should be no reason some one being annexed by a small-city should not be afforded the same right to demand water and sewer as is allowed in the large-city annexations.

These are the only two distinctions between the two Parts

Part 3. Annexation by Cities of 5,000 or More

§ 160A-45. Declaration of policy.

It is hereby declared as a matter of State policy:

(1)       That sound urban development is essential to the continued economic development of North Carolina; 

(2)       That municipalities are created to provide the meaningful governmental services essential for orderly growth, sound urban development and for the protection of health, safety and welfare in areas being intensively used for residential, commercial, industrial, institutional and governmental purposes or in areas undergoing such development; 

(3)       That municipal boundaries should be extended in accordance with legislative standards applicable throughout the State, to include such areas and to provide the high quality of meaningful governmental services needed therein for the public health, safety and welfare; 

(4)       That new urban development in and around municipalities having a population of 5,000 or more persons is more scattered than in and around smaller municipalities, and that such larger municipalities have greater difficulty in expanding municipal utility systems and other service facilities to serve such scattered development, so that the legislative standards governing annexation by larger municipalities must take these facts into account if the objectives set forth in this section are to be attained; 

(5)       That areas annexed to municipalities in accordance with such  uniform legislative standards should shall receive the services provided by the annexing municipality in accordance with G.S. 160A-47(3). (1959, c. 1009, s. 1; 1973, c. 426, s. 74; 1983, c. 636, s. 9.) 

PROBLEM: This attempts to codify the N.C. Supreme Court decision (Nolan v. Village of Marvin) that determined that providing services by way of involuntary annexation was "grounded in a legislative expectation that the annexing municipality possesses meaningful services to extend to the annexed property." 

Another principle determined by this case is that the "Policy" (here to the left) of the state must be taken into consideration when applying the "ability to serve" found in the rest of the statutes. This is another way of stating that the WHY is just as important as the HOW. Until now, the WHY has been focused on insuring the cities can collect taxes, but the policy of the state has always been meant to provide for the "public health, safety and welfare".

SOLUTION:

(4) Why repeal the distinction between small and large cities at 5,000? 

First, there are only two major differences between the two. There is a slightly different set of urban standards and small cities have no policy to allow citizen to request water and sewer service.

1. The standard for small cities does not even have a population component. To qualify as 'urban' an area must have its acreage divided into three acre or smaller lots. How in the world did North Carolina reach the conclusion that a THREE acre lot was urban? Well it didn't. The original 1958 study commission determined that municipal services were not justified until reaching the density of one to two homes per acre. That means one-half and one acre lots, not two and certainly not three.

2. The small-city statutes never provide that water and sewer be delivered to the homeowner or business. Main lines are the only consideration. How does this provide for the public's health, safety and welfare? It doesn't and for this reason the small-city statute, Part 2, should be repealed.

§ 160A-46. Authority to annex.

SOLUTION: Require a plan and staff to manage growth

§ 160A-47. Prerequisites to annexation; ability to serve; report and plans.

A municipality may exercise exercising authority under this Part only to annex an area in need of meaningful services and if the municipality can provide at least one meaningful service. However, if the area is in need of central water and sewer, the municipality must provide these services. The municipality shall provide any other meaningful services and municipal services to the area on the same basis and in the same manner as such services are provided within the rest of the municipality prior to annexation. The municipality shall make plans for the extension of such services to the area proposed to be annexed and shall, prior to the public hearing provided for in G.S. 160A-49, prepare a report setting forth such plans to provide services to such area. The report shall be delivered to the clerk of the board of county commissioners at least 30 days before the date of the public informational meeting on any annexation under this Part. The report shall include:

(1)       A map or maps of the municipality and adjacent territory to show the following information:

a.         The present and proposed boundaries of the municipality, with clear identification of all the parcels of property to be annexed.

b.         The present major trunk water mains and sewer interceptors and outfalls, and the proposed extensions of such mains and outfalls water and sewer infrastructure as required in subdivision (3) of this section. The water and sewer map must bear the seal of a registered professional engineer. 

c.         The general land use pattern in the area to be annexed

b. Why change "mains and outfalls" to water and sewer infrastructure?

ANSWER: If the state mandates that annexation is necessary for health, safety and welfare it should insure that water and sewer are planned for where it is actually needed; within the neighborhood at the curb.

(2)       A statement showing that the area to be annexed meets the requirements of G.S. 160A-48.

(3)       A statement setting forth the plans of the municipality for extending to into the area to be annexed each major municipal service performed within the municipality at the time of annexation. Specifically, such plans shall:

a.        Provide for extending police protection, fire protection, solid waste collection, storm drainage  and street maintenance services to the area to be annexed on the date of annexation on substantially the same basis and in the same manner as such services are provided within the rest of the municipality prior to annexation. A contract with a rural fire department to provide fire protection shall be an acceptable method of providing fire protection. If a water distribution system is not available in the area to be annexed, the plans must call for reasonably effective fire protection services until such time as waterlines are made available in such area under existing municipal policies for the extension of waterlines. A contract with a private firm to provide solid waste collection services shall be an acceptable method of providing solid waste collection services only if a private firm provides solid waste collection within the rest of the municipality prior to the annexation.

(3)a. Why add "storm drainage" to the short list of municipal services?

Storm drainage has become an environmental concern that should not be ignored. When an area is truly urban, storm water management helps prevent erosion and acts to control sedimentation which is a major concern for water quality. It was a concern in the 1958 study but was not included in the statutes.

Strike "If a water distribution...": If a municipality cannot provide water, it cannot annex, it is not providing a meaningful service.

Why add "only if a private firm provides solid waste collection within the rest of the municipality prior to the annexation."

It is only equitable that the annexation area should receive the same provider used in the rest of the city.

b.         Provide for extension of major trunk water mains and sewer outfall lines water and sewer infrastructure into the area to be annexed so that when such lines are constructed, property owners in the area to be annexed will be able to secure public water and sewer service according to the policies in effect in such municipality for extending water and sewer lines to individual lots or subdivisions according to the extension policy of the Local Government Commission. If requested by the owner of an occupied dwelling unit or an operating commercial or industrial property in writing on a form provided by the  municipality, which form acknowledges that such extension or extensions will be made according to the current financial policies of the municipality  for making such extensions, and if such form is received by the city clerk no later than five days after the public hearing, provide for extension of water and sewer lines to the property or to a point on a public street or road right-of-way adjacent to the property according to the financial policies in effect in such municipality  for extending water and sewer lines. If any such requests are timely made, the municipality shall at the time of adoption of the annexation ordinance amend its report and plan for services to reflect and accommodate such requests, if an amendment is necessary. In areas where the municipality is required to extend sewer service according to its policies, but  If the installation of sewer is not economically feasible due to the unique topography of the area, as determined by the Municipal Boundary Board, the municipality shall provide septic system maintenance and repair service until such time as sewer service is provided to properties similarly situated. 

c.         If extension of major trunk water mains, sewer outfall lines, sewer lines and water lines water and sewer infrastructure is necessary, set forth a proposed timetable for construction of such mains, outfalls and lines as soon as possible following the effective date of annexation. In any event, the plans shall call for construction to be completed within two years of the effective date of annexation. 

d.         Set forth the method under which the municipality plans to finance extension of services into the area to be annexed.

(3a)    A statement indicating how the services the city will be providing are meaningful to the residents in the annexation area.

Why should the state and LGC establish an extension policy?
The state has had a policy for fifty years that states:

"That areas annexed to municipalities in accordance with such  uniform legislative standards..."

Considering there are over 500 municipalities in N.C., that means there are over 500 different extension policies. Some pay for the extension (Salisbury), others assess the landowners (most) and some leave it to the whims of the city council (Selma) to decide which they wish to do. Some cities (Cary) place unreasonable responsibilities on the citizen such as requiring sealed Professional Engineer plans to be submitted with the request for water/sewer extension 

The constitution also guarantees that the laws of the state should apply uniformly to all of its citizens (Article  I Sec. 19). As such, it is proper that the state mandate one extension policy when the state uses a statute to force annexation onto the citizen.

City add requirements to the form that do not exist in statutes (Example: Cary)

Delete 5 day expedited request form procedure: One must ask, Why must a citizen request water/sewer when this is the major argument for forced annexation?

Why "due to the unique topography of the area, as determined by the Municipal Boundary Board".

Cities broadly interpret this, usually by completely ignoring the word "unique". Take the case of Princeton. There are three homes just beyond the reach of a shallow sewer manhole. All of Princeton is about as flat as a city can be, so there is no "unique" topography. This sense of the word should mean "the relief features or surface configuration of an area." The elevation of the manhole was not unique and neither was the elevation of the house, it was like all others. But because it was out of reach, the town declared it "unique". The Municipal Boundary Board should make this determination.

Added (3a): If it is the policy of the state that services are meaningful it is the burden of the city to indicate how such services are meaningful

(6)       A statement showing detailing all the additional taxes, charges, and other fees that property owners in the proposed annexed area will incur and the estimated cost to the property owner to provide water and sewer line extensions throughout the annexation area.

(7)       A statement explaining how the annexation will promote sound urban development. The municipality must explain why the annexation is being proposed to promote sound urban development through the provision of meaningful services to the annexed area.

  

SOLUTION: The city has a year to evaluate how much it will cost the city, they should provide that same information to the citizen.

§ 160A-47.1. Repealed Limitation on change in financial participation prior to annexation.

SOLUTION: With the LGC deciding what the connection policy, this statute becomes moot.

§ 160A-48. Character of area to be annexed.

(a)          A municipal governing board may extend the municipal corporate limits only if the area is in need of   meaningful services, to include any area

(1)       Which meets the general standards of subsection (b), and 

(2)       Every part of which meets the requirements of either subsection (c) or subsection (d).

(b)       The total area to be annexed must meet the following standards:

(1)       It must be adjacent or contiguous to the municipality's boundaries at the time the annexation proceeding is begun, except if the entire territory of a county water and sewer district created under G.S. 162A-86(b1) is being annexed, the annexation shall also include any noncontiguous pieces of the district as long as the part of the district with the greatest land area is adjacent or contiguous to the municipality's boundaries at the time the annexation proceeding is begun.

 a.    A municipality may not annex an area only because the area is contiguous to municipal territory that:    

(1)  was annexed before Aug 1, 2009 and     

(2) only because the territory was contiguous to municipal territory that was less than 1,000 feet in width at its narrowest point. 

b.    Subsections (a) does not apply to an area: 

(1)  completely surrounded by incorporated territory of one or more municipalities; or

(2)  for which the owners of the area have requested annexation by the municipality; or

(3)  that is owned by the municipality. 

c.    Subsection (a) does not apply if the minimum width of the narrow territory described by Subsection (a)(2), following subsequent annexation, is no longer less than 1,000 feet in width at its narrowest point.               

d.    For purposes of this section, roads, highways, rivers, lakes, or other bodies of water are not included in computing the 1,000-foot distance unless the area being annexed includes land in addition to a road, highway, river, lake, or other body of water. 

Delete 'or subsection (d):  JLSCoMA recommendation III.A. Annex areas that are "urban in nature"

d2 subareas are NON-urban areas that are allowed on top of the 35% Non-urban areas  (part of the 65/35 urban to non-urban split). If these "bridges" are truly needed they should come from the 35% already allowed for.

JLSCoMA recommendation III.D. (Shoestring annexations)

PROBLEM: Definition of "contiguity"

The definition of contiguity has been fairly clear for many years but so many cities have violated the original intent of the 1/8 contiguity standard (which was primarily designed to prevent "strip" or shoestring annexations: 1958 annexation supplement report, p.11), that the bare bones description no longer suffices. Take the example of Ayden. In what has been described as a defensive move, to keep its neighboring cities to its north and south from encroaching on Ayden, miles of state highway has been annexed. All properties that now border those highways are subject to annexation despite the fact they are miles from town and have no "community of interest" to Ayden. 

Greensboro has done basically the same thing by annexing thousands of acres of lake and shoreline enabling it to establish contiguity with thousands of acres of land.

SOLUTION: Mandate that contiguity be more that merely abutting a highway or lake shoreline. There should be contiguity with the primary corporate limits.

(2) At least one eighth fifty percent of the aggregate external boundaries of the area must coincide with the municipal boundary. 

(3) No part of the area shall be included within the boundary of another incorporated municipality. 

SOLUTION: Require 1/2 (50%) contiguity. Most states do not mandate a fixed figure, but then again most of these states allow a vote. One of the most aggressive annexation states is Kansas; it has a 50% contiguity standard. Two states have a 75% standard, another dictates surrounded on 3 sides.

Should NC decide to allow a vote, the contiguity percentage could be eliminated.

(4) Width Requirements

(a) A municipality may not annex a publicly or privately owned area, including a strip of area following the course of a road, highway, river, stream, creek or lake, unless the width of the area at its narrowest point is at least 1,000 feet. 

(b) The prohibition established by Subsection (a) of this section does not apply if: 

(1) the boundaries of the municipality are contiguous to the area on at least two sides; or

(2) the annexation is initiated on the written petition of all of the owners of the area; or 

(3) the area abuts or is contiguous to another city or town boundary.

This statute is from Texas, easily the fourth most aggressive annexation state. It is written to prevent strip (shoestring) annexations

NC cities that have used shoestring annexations:

Cary, Four Oaks, Troutman, Benson, Shallotte, Ayden, Grifton, Winterville, Carthage, Greensboro, Garner...

(5) No part of the area shall, at the time notice of public hearing is given in accordance with G.S.  160A-49(b), be receiving water and sewer service from any provider other than the municipality proposing annexation. This requirement may be waived by written agreement of the municipality proposing annexation and of the majority of the landowners in the annexation area.

Since the primary justification for annexation is to provide for public health, safety and welfare by providing water and sewer and in keeping  with the 1958 commissions point: "And unquestionably without a high quality of water and sewer service and fire protection, other municipal services have relatively little attraction.”, the commission decided that an area should not be annexed when these services are provided by others.

(c)       Part or all of the area to be annexed must be developed for urban purposes at the time of approval of the report provided for in G.S. 160A-47. Area of streets and street rights-of-way shall not be used to determine total acreage under this section. An area developed for urban purposes is defined as any area which meets any one of the following standards:

(1)      Has a total resident population equal to at least two and three-tenths three persons for each acre of land included within its boundaries; or

(2) Has a total resident population equal to at least one person for each acre of land included within its boundaries, and is subdivided into residential, commercial, industrial, institutional or governmental  lots and tracts such that at least sixty percent (60%) sixty-five percent (65%) of the total acreage consists of lots and tracts three two acres or less in size and such that at least sixty-five percent (65%) of the total number of lots and tracts are one acre or less in size; or

(3)       Is so developed that at least sixty percent (60%) sixty-five percent (65%) of the total number of lots and tracts in the area at the time of annexation are used for residential, commercial, industrial, institutional or governmental purposes, and is subdivided into residential  lots and tracts such that at least sixty percent (60%) of the total acreage, not counting the acreage used at the time of annexation for commercial, industrial, governmental or institutional purposes, consists of lots and tracts three two acres or less in size. For purposes of this section, a lot or tract shall not be considered in use for a commercial, industrial, institutional, or governmental purpose if the lot or tract is used only temporarily, occasionally, or on an incidental or insubstantial basis in relation to the size and character of the lot or tract. For purposes of this section, acreage in use for commercial, industrial, institutional, or governmental purposes shall include acreage actually occupied by buildings or other man-made structures together with all areas that are reasonably necessary and appurtenant to such facilities for purposes of parking, storage, ingress and egress, utilities, buffering, and other ancillary services and facilities. That acreage not included shall be used in the remaining percentage of undeveloped acreage ; or

There was never any legitimate reason for the 2.3 standard and none for the standard of 2.5 but it was the only one offered by staff. The original number discussed in earlier meetings was 3 person per acre. The only study that offered any concrete reasoning was the 1958 study commission and it recommended 4 to 8 person per acre. 

We should, regardless of the Commission's recommendation, change this to 3 persons per acre. It makes the area much more urban and even then, does not meet the standard discussed in the original Commission report.

(2) Define lots and tracts:

This excludes nonurban lots from the calculations. The definition for residential has been modified to take in the case where a vacant lot is considered residential if it has been offered or represented as such. Too often small (less than 10 acres) farm/forestland for which there is no intention of being developed or urbanized is thrown in with the "subdivided" definition.

(3) Change 60% to 65%: JLSCoMA recommendation III.A 

Better reflects that an area is urban

Add: That acreage not included shall be used in the remaining percentage of undeveloped acreage

Closes an overlooked fine point about what to do with the nonurban acreage that was excluded from the commercial, industrial, governmental, or institutional classifications. Not knowing what to do with it the courts have categorized these based of vague percentages, basically ignoring the nonurban acreage. Check with Professor David Lawrence of the UNC School of Government for more details.

(d)       In addition to areas developed for urban purposes, a governing board may include in the area to be annexed any area which does not meet the requirements of subsection (c) if such area either:

(1)       Lies between the municipal boundary and an area developed for urban purposes so that the area developed for urban purposes is either not adjacent to the municipal boundary or cannot be served by the municipality without extending services and/or water and/or sewer lines through such sparsely developed area; or

(2)       Is adjacent, on at least sixty percent (60%) of its external boundary, to any combination of the municipal boundary and the boundary of an area or areas developed for urban purposes as defined in subsection (c).

The purpose of this subsection is to permit municipal governing boards to extend corporate limits to include all nearby areas developed for urban purposes and where necessary to include areas which at the time of annexation are not yet developed for urban purposes but which constitute necessary land connections between the municipality and areas developed for urban purposes or between two or more areas developed for urban purposes. For purposes of this subsection, "necessary land connection" means an area that does not exceed twenty-five percent (25%) of the total area to be annexed.

d2 subareas are NON-urban areas that are allowed on top of the 35% Non-urban areas  (part of the 65/35 urban to non-urban split). If these "bridges" are truly needed they should come from the 35% already allowed for.

§ 160A-49. Procedure for annexation.

(a)       Notice of Intent to Annex. – Any municipal governing board desiring to annex territory under the provisions of this Part shall first pass a resolution stating the intent of the municipality to consider annexation. Such resolution shall describe the boundaries of the area under consideration, fix a date for a public informational meeting, and fix a date for a public hearing on the question of annexation. The date for the public informational meeting shall be not less than 45 365 days and not more than 55 395 days following passage of the resolution to annex. The date for the public hearing to be not less than 60 days and not more than 90 days following passage of the resolution adoption of the annexation report pursuant to subsection (c) of this section.

(a1)    The resolution to annex shall be filed with the Local Government Commission.

(b)       Notice of Public Hearing. – The notice of public hearing shall:

(1)       Fix the date, hour and place of the public informational meeting and the date, hour, and place of the public hearing.

(2)       Describe clearly the boundaries of the area under consideration, and include a legible map of the area.

(3)       State that the report required in G.S. 160A-47 will be available at the office of the municipal clerk at least 30 days prior to the date of the public informational meeting and provide a website address where the searchable report may be downloaded.

(4)       Include a notice of a property owner's rights to request water and sewer service in accordance with G.S. 160A-47.

(5)       Include an explanation of a property owner's rights pursuant to subsections (f1) and (f2) of this section.

Added (a1): Gives LGC notice that town is starting the process.

(b)(3) added: and provide a website address where the searchable report may be downloaded. Part of JLSCoMA recommendation I.B.

Allows greater dissemination of annexation report information 

The result of many complaints about not receiving mail notification about annexation proceedings.

The 'protest petition form' must be included in the mailing, this assumes the protest petition method will be used.

(c)       Action Prior to Informational Meeting. – At least 30 days before the date of the public informational meeting, the governing board Local Government Commission based on recommendations of the Municipal Boundary Board shall approve or not approve the report provided for in G.S. 160A-47, and shall make it available to the public at the office of the municipal clerk. In addition, the municipality may prepare a summary of the full report for public distribution. In addition, the city shall post in the office of the city clerk, at least 30 days before the public informational meeting, a legible map of the area to be annexed and a list of persons holding freehold interests in property in the area to be annexed that it has identified.

(c1)     Public Informational Meeting. – Provided the Local Government Commission has approved the report provided for in G.S. 160A-47, at At the public informational meeting a representative of the municipality shall first make an explanation of the report required in G.S. 160A-47 before a quorum of the governing board and Municipal Boundary Board. Following such explanation, all persons resident or owning property in the territory described in the notice of public hearing, and all residents of the municipality, interested parties  shall be given the opportunity to ask questions and receive answers regarding the proposed annexation.

(d)       Public Hearing. – At the public hearing a representative of the municipality shall first make an explanation of the report required in G.S. 160A-47. Following such explanation, all persons resident or owning property in the territory described in the notice of public hearing, and all residents of the municipality, interested parties shall be given an opportunity to be heard.

(c1) Oversight of process by the Local Government Commission: JLSCoMA recommendation I.A.

(c1) and (d) Allow all interested parties to speak at the Public Informational and Public Hearing

From a practical point, the state should not prevent a member of the public from speaking at a public hearing.

PROTEST PETITION METHOD 1

(d1)       If a majority of the property owners in the area proposed to be annexed protest the annexation, either orally or in writing at the public hearing or in writing within 15 days after the conclusion of the public hearing, the city shall not annex in that proceeding any part of the territory described in the notice. This provision does not preclude a subsequent proceeding with respect to all or part of that territory if that proceeding is commenced more than 1 year after the public hearing.

(d2)      Any protest to such annexation shall be deemed waived unless the same is indicated by a signed protest petition at such public hearing, or is filed in writing with the city clerk of the annexing city within 15 days after the conclusion of such public hearing. In the case of mailed protests, the postmark on the envelope shall be deemed to be the date of filing.

(d3)       Determination of number and identity of owners of real property; sufficiency of petitions and protests.

     (1)  Whenever it is necessary for the purposes of this Article, to determine the number or identity of the record owners of real property in a territory proposed to be annexed, a list of such owners, certified by the county tax collector on any date between the institution of the proceedings, as provided in G.S. 160A-49(a), and the public hearing, as provided in G.S.160A-49(d), both dates inclusive, shall be prima facie evidence that only those persons named thereon are such owners.

      (2)  A petition or protest is sufficient for the purposes of this Article as to any lot or parcel of real property which is owned:

       a.  As community property, if it is signed by the husband or wife.

       b.  By two persons, either natural or artificial, other than as community property, if signed by both such owners.

       c.  By more than two persons, either natural or artificial, if signed by a majority of such owners.

      d.  Either wholly or in part, by an artificial person, if it is signed by an authorized agent and accompanied by a copy of such authorization.  

What is done with the protest petition? It could invoke an election or stop the process altogether, or kick in additional criteria the municipality must meet.

Pros: 

Most cost effective

Annexation is only challenged when there is strong opposition

Can be overruled if the municipality can meet higher standards 

(d1)       If 15% of the qualified voters in the area proposed to be annexed protest the annexation, either orally or in writing at the public hearing or in writing within 15 days after the conclusion of the public hearing, the governing body shall submit the question as to whether said territory shall be annexed to a vote of the qualified voters of the area proposed to be annexed, and the governing body may or may not cause the question to be submitted to the residents of the municipality voting separately. The governing body may, without receipt of a petition, call for a referendum on the question: Provided, however, the governing body of the municipality shall be required to call for a referendum within the municipality if a petition is filed and signed by at least fifteen percent (15%) of the qualified voters residing in the municipality.

(1) Extent of participation in referendum, call of election-Upon receipt of a sufficient petition, or if the governing board on its own motion determines that a referendum shall be held, the local governing body shall determine whether or not the election will be conducted solely in the area to be annexed or simultaneously with the qualified voters of the municipality and shall order the board of elections of the county in which the municipality is located to call an election to determine whether or not the proposed territory shall be annexed to the city or town. Within 75 days after receiving such order from the governing body, the county board of elections shall proceed to hold an election on the question.

(2) Action required by county board of elections; publication of resolution as to election; costs of election. -Such election shall be called by a resolution or resolutions of said county board of elections which shall:

a.   Describe the territory proposed to be annexed to the said city or town as set out in the order of the said local governing body;

b.   Provide that the matter of annexation of such territory shall be submitted to the vote of the qualified voters of the territory proposed to be annexed, and if ordered by the local governing body, the qualified voters of said city or town voting separately; and

c.   Provide for registration of voters in the territory proposed to be annexed for said election in accordance with G.S. 163-288.2. Said resolution shall be published in one or more newspapers of the said county once a week for 30 days prior to the deadline for registration under G.S. 163-82.6(c). All costs of holding such election shall be paid by the city or town. Except as herein provided, said election shall be held under the same statutes, rules, and regulations as are applicable to elections in the municipality whose corporate limits are being enlarged.

 (3) Ballots; effect of majority vote for extension. -Ballots, voting systems, or both may be used in accordance with Chapter 163 of the General Statutes. The question to be used in the voting systems and ballots shall be:

"[ ] FOR [ ] AGAINST

Extension."

If at such election, a majority of the votes cast from the area proposed for annexation shall be 'For Extension', and, in the event an election is held in the municipality, the majority of the votes cast in the municipality shall also be 'For Extension', then from and after the later of the date of the declaration of the result of such election or the effective date contained in the ordinance, the territory and its citizens and property shall be subject to all the debts, laws, ordinances, and regulations in force in said city or town and shall be entitled to the same privileges and benefits as other parts of said city or town. The newly elected territory shall be subject to city taxes as provided by this Article.

(e)       Passage of the Annexation Ordinance. – The municipal governing board shall take into consideration facts presented at the public hearing and shall have authority to amend the report required by G.S. 160A-47 to make changes in the plans for serving the area proposed to be annexed so long as such changes meet the requirements of G.S. 160A-47 and are approved when required pursuant to G.S. 160A-58.50 and G.S. 160A-58.63,   provided that if the annexation report is amended to show additional subsections of G.S. 160A-48(c) or (d) under which the annexation qualifies that were not listed in the original report, the city must hold an additional public hearing on the annexation not less than 30 nor more than 90 days after the date the report is amended, and notice of such new hearing shall be given at the first public hearing. At any regular or special meeting held no sooner than the tenth day following the public hearing and not later than 90 days following approval of the annexation by the LGC such public hearing, the governing board shall have authority to adopt an ordinance extending the corporate limits of the municipality to include all, or such part, of the area described in the notice of public hearing which meets the requirements of G.S. 160A-48 and which the governing board has concluded should be annexed. The ordinance shall:

(1)       Contain specific findings showing that the area to be annexed meets the requirements of G.S. 160A-48. The external boundaries of the area to be annexed shall be described by metes and bounds. In showing the application of G.S. 160A-48(c) and (d) to the area, the governing board may refer to boundaries set forth on a map of the area and incorporate same by reference as a part of the ordinance.

(3)       A specific finding that on the effective date of annexation the municipality will have funds appropriated in sufficient amount to finance construction of any major trunk water mains and sewer outfalls and such water and sewer lines water and sewer infrastructure as required in G.S. 160A-47(3)b found necessary in the report required by G.S. 160A-47 to extend the basic water and/or sewer system of the municipality into the area to be annexed, or that on the effective date of annexation the municipality will have authority to issue bonds in an amount sufficient to finance such construction. If authority to issue such bonds must be secured from the electorate of the municipality prior to the effective date of annexation, then the effective date of annexation shall be no earlier than the day following the statement of the successful result of the bond election.  

GC must approve any changes the council wishes to make to the annexation. The current statute allows parcels to be dropped but never added

Strike: and (d): (d) is nonurban subareas

(3) Replace "major water mains and sewer outfalls" with  "water and sewer infrastructure"

In keeping with the principle that the state should be facilitate water and sewer throughout the area instead of up to the area

(5)    The annexation ordinance shall not become effective until the question of annexation is submitted to the qualified electors of the annexing municipality and of the area to be annexed at the next general election or at a special election. The special election shall be called by ordinance or proclamation of the mayor of the annexing municipality.

Calls for referendum

Vote in annexation area only

(e1)    Referendum for ratification or rejection of annexation resolution generally; procedure; subsequent annexation attempt  
   The municipality shall issue a call for a referendum to ratify or reject the adoption of the annexation resolution. The referendum shall be held not less than 30 days nor more than 60 days after the date of passage of the resolution required by G.S 160A-49(e). The special election shall be conducted in accordance with the provisions of law applicable to regular elections in the city or town. Only those persons registered to vote for members of the General Assembly residing, on the date of the adoption of the resolution, in the proposed area to be annexed shall vote in the referendum. If a majority of those voting vote in favor of annexation, the area shall become a part of the corporate limits of the municipality, but not otherwise. If  less than a majority of those voting vote in favor of the annexation, a period of two years must elapse before annexation of the same area or any portion thereof may be attempted again under authority of this article.

or

One of three possible versions on voting: This version requires a vote in annexation area only.

Holliman version-one vote combined

(e1)  Referendum for ratification or rejection of annexation   

If a majority of the qualified electors voting in the election vote for the annexation, no later than fifteen (15) days following the election, the county clerk shall certify the election results and record the same, along with the description and a map of the annexed area, in the county records, and file a certified copy thereof with the Secretary of State. [If this is adopted the map and copy to State no longer is responsibility of mayor as is now the case]

or

One of three possible versions on voting: This version requires a vote in the annexation area and the municipality as one combined vote.

Modified Holliman version-two votes

(e1)  Referendum for ratification or rejection of annexation   

   The municipality shall issue a call for a referendum to ratify or reject the adoption of the annexation resolution. The governing body of such municipality shall not have the power to extend the limits of the municipality by such annexation until an election is held at which the proposition for annexation is approved by a majority of the total votes cast in the municipality and by a separate majority of the total votes cast in the unincorporated territory sought to be annexed. However, should less than a majority of the total votes cast in the area proposed to be annexed vote in favor of the proposal, but at least a majority of the total votes cast in the municipality vote in favor of the proposal, then the proposal shall again be voted upon in not more than one hundred twenty days by both the registered voters of the municipality and the registered voters of the area proposed to be annexed. If at least two-thirds of the qualified electors voting thereon are in favor of the annexation, then the municipality may proceed to annex the territory. If the proposal fails to receive the necessary majority, no part of the area sought to be annexed may be the subject of another proposal to annex for a period of two years from the date of the election, except that, during the two-year period, the owners of all fee interests of record in the area or any portion of the area may petition the municipality for the annexation of the land owned by them pursuant to the procedures in G.S. 160A-31. The elections shall be held, except as herein otherwise provided, in accordance with the general state law governing special elections, and the entire cost of the election or elections shall be paid by the municipality proposing to annex the territory. 

One of three possible versions on voting: This version requires a separate vote in annexation area and another in the municipality. If the annexation area votes NO and the city vote YES, there is another vote that is combined. 

(f)        Effect of Annexation Ordinance. – Unless otherwise provided by statute, an annexation will be effective  on Jun 30, except Except [NCLM Proposal 4] as provided in subsection (f1) of this section, from and after the effective date of the annexation ordinance, the territory and its citizens and property shall be subject to all debts, laws, ordinances and regulations in force in such municipality and shall be entitled to the same privileges and benefits as other parts of such municipality. Real and personal property in the newly annexed territory on the January 1 immediately preceding the beginning of the fiscal year in which the annexation becomes effective is subject to municipal taxes as provided in G.S. 160A-58.10. Provided that annexed property which is a part of a sanitary district, which has installed water and sewer lines, paid for by the residents of said district, shall not be subject to that part of the municipal taxes levied for debt service for the first five years after the effective date of annexation. If this proviso should be declared by a court of competent jurisdiction to be in violation of any provision of the federal or State Constitution, the same shall not affect the remaining provisions of this Part. If the effective date of annexation falls between June 1 and June 30, and the effective date of the privilege license tax ordinance of the annexing municipality is June 1, then businesses in the area to be annexed shall be liable for taxes imposed in such ordinances from and after the effective date of annexation.

The NCLM felt the current method of pro-rating taxes was "confusing and burdensome"

Must work with the repeal of (j) below

(f2)     Effective Date of Annexation for Certain Property. – Annexation of property subject to annexation under subsection (f1) of this section shall become effective:

(1)       Upon the effective date of the annexation ordinance, the property is considered part of the city only (i) for the purpose of establishing city boundaries for additional annexations pursuant to this Article and (ii) not [JLSCoMA Recommendation VI. B.] for the exercise of city authority pursuant to Article 19 of this Chapter. 

Farms and forest land should not be subject to zoning regulations, which is just a continuation of county regulations

(2)       If at the time the writ is sought such services set forth in the plan submitted under the provisions of G.S. 160A-47(3)a are still being provided on substantially the same basis and in the same manner as on the date of annexation of the municipality.

If, not earlier than 24 months from the effective date of the annexation, and not later than 27 months from the effective date of the annexation, any person owning property in the annexed area can show that the plans submitted under the provisions of G.S. 160A-47(3)c require the construction of major trunk water mains and sewer outfall lines water and sewer infrastructure and if construction has not been completed within two years of the effective date of the annexation, relief may also be granted by the superior court by an order to the municipality to complete such lines and outfalls water and sewer infrastructure within a certain time. Similar relief may be granted by the superior court to any owner of property who made a timely request for a water or sewer line, or both, pursuant to G.S. 160A-47(3)b and such lines have not been completed within two years from the effective date of annexation in accordance with applicable city policies and through no fault of the owner, if such owner petitions for such relief not earlier than 24 months following the effective date of annexation and not later than 27 months following the effective date of annexation.
If a writ is issued, costs in the action, including a reasonable attorney's fee for such aggrieved person, shall be charged to the municipality.

Strike references to 5 day request for service form: Moot that new policy provides these services

The commission was only given one option, 60 months. Since there were no amendments allowed this measure passed for fear there would be no correction to the law. 60 months is unreasonable given that the city is required to provide water/sewer within 24 months

Rebate of taxes paid after 24 months and abatement until provided

(1)  A majority of the landowners of an annexed area or portion thereof may petition the governing body of the municipality to deannex the area or portion thereof if the municipality fails or refuses to provide services or to cause services to be provided to the area or portion thereof on substantially the same basis and in the same manner as such services are provided within the rest of the municipality within 36 months of the effective date of annexation.

(2)  If the governing body fails or refuses to deannex the area within 60 days after the date of the receipt of the petition, any one or more of the signers of the petition may bring a cause of action in the superior court of the county in which the area is principally located to request that the area be deannexed. On the filing of an answer by the governing body, and on application of either party, the case shall be advanced and heard without further delay.  The superior court shall enter an order deannexing the area if the court finds that a valid petition was filed with the municipality and that the municipality failed to perform its obligations in accordance with the service plan or failed to perform in good faith. If an order is issued, costs in the action, including a reasonable attorney's fee, shall be charged to the municipality.

(3)  If the area is deannexed under this section, it may not be annexed again within 10 years after the date of the deannexation.

(4)  The petition for deannexation must:                                     

a.  be written;
b.  request the deannexation;
c.  be signed in ink or indelible pencil by the appropriate landowner;
d.  be signed by each landowner as that person's name appears on a certified list of landowners to be provided by the county tax assessor;
e.  describe the area to be deannexed and have a plat or other likeness of the area attached;  and  
f.  be presented to the city clerk.                      

(5)  The signatures to the petition need not be appended to one paper.      

(6)  Before the petition is circulated among the landowners, notice of the petition must be given by posting a copy of the petition for 10 days in three public places in the annexed area and by publishing a copy of the petition once in a newspaper of general circulation serving the area before the 15th day before the date the petition is first circulated.  Proof of the posting and publication must be made by attaching to the petition presented to the city clerk:

                        a.  the sworn affidavit of any landowner who signed the petition, stating the places and dates of the posting;  and

                        b.  the sworn affidavit of the publisher of the newspaper in which the notice was published, stating the name of the newspaper and the issue and date of publication.

(1)  If an area is deannexed pursuant to subsection (h2) of this section, the municipality deannexing the area shall refund to the landowners of the area the amount of money collected by the municipality in property taxes and fees from those landowners during the period that the area was a part of the municipality less the amount of money that the municipality spent for the direct benefit of the area during that period.

(2)  A municipality shall proportionately refund the amount under subsection (1) of this section to the landowners according to a method to be developed by the Municipal Boundary Board that identifies each landowner's approximate pro rata payment of the taxes and fees being refunded.

(3)  A municipality required to refund money under this section shall refund the money to current landowners in the area not later than the 180th day after the date the area is deannexed.  Money that is not refunded within the period prescribed by this subsection accrues interest at the rate of:

                        a.  six percent each year after the 180th day and until the 210th day after the date the area is deannexed;  and

                        b.  one percent each month after the 210th day after the date the area is deannexed.

(i)        No resolution of intent may be adopted under subsection (a) of this section unless the city council (or planning agency created or designated under either G.S. 160A-361 or the charter) has, by resolution adopted at least one year prior to adoption of the resolution of intent, identified the area as being under consideration for annexation and included a statement in the resolution notifying persons subject to the annexation of their rights under subsections (f1) and (f2) of this section; provided, adoption of such resolution of consideration shall not confer prior jurisdiction over the area as to any other city. The area described under the resolution of intent may comprise a smaller area than that identified by the resolution of consideration. The resolution of consideration may have a metes and bounds description or a map and shall remain effective for two years after adoption, and shall be filed with the city clerk. A new resolution of consideration adopted before expiration of the two-year period for a previously adopted resolution covering the same area shall relate back to the date of the previous resolution. 

Because of the many complaints about lack of timely notification, the exception that allowed postdating the effective annexation date for one year to transpire after Resolution of Intent has been struck.

Because of the many complaints about lack of timely notification, the exception that allowed postdating the effective annexation date for one year to transpire after Resolution of Intent has been struck.

Strike section: JLSCoMA recommendation V.A.: Commission elected to require complete abatement of ad valorem taxes at the end of five years because this was the only option offered. There was never any discussion in meetings concerning five years. The members voted for this because there was no better alternative offered and amendments were not allowed.

FAC recommends this to be three years.

§ 160A-49.1. Contract with rural fire department.

(a)       If the area to be annexed described in a resolution of intent to annex passed under G.S. 160A-49(a) includes an area in an insurance district defined under G.S. 153A-233, a rural fire protection district under Article 3A of Chapter 69 of the General Statutes, or a fire service district under Article 16 of Chapter 153A of the General Statutes, and a rural fire department was on the date of adoption of the resolution of intent to annex providing fire protection in the area to be annexed, then the city (if the rural fire department makes a written request for a good faith offer, and the request is signed by the chief officer of the fire department and delivered to the city clerk no later than 15 days before the public hearing) is required to make a good faith effort to negotiate a five-year contract with the rural fire department to provide fire protection in the area to be annexed.

Strike "five-year" limitation on contract

As long as the rural fire department continues to provide full response service to an area there should be no time limit on compensation.

§ 160A-50. Appeal.

(a)       Within 60 75 [NCLM Proposal 5] days  following the passage of an annexation ordinance under authority of this part, Article, any person owning property in the annexed territory county where the annexation of the area has occurred who shall believe that he will suffer material injury by reason of the failure of the municipal governing board to comply with the procedure set forth in this Part Article or to meet the requirements set forth in G.S. 160A-31, G.S. 160A-48 or G.S. 160A-58.1, as the case may be, or the Municipal Boundary Board failed to consider facts as they apply to his property may file a petition in the superior court of the county in which the municipality is located seeking review of the action of the governing board. 

Added standing to 'county landowners": Since someone must be able to challenge cities when the law is violated. Not so important if there is oversight, but there is no guarantee that there will be sufficient oversight.

ADDED: "G.S. 160A-31" (voluntary contiguous) and "or G.S. 160A-58.1 , as the case may be" (voluntary noncontiguous)

Add an appeal process to the two voluntary types of annexation

(f)        The court shall fix the date for review of annexation proceedings under this Part, which review date shall preferably be within 30 days following the last day for receiving petitions to the end that review shall be expeditious and without unnecessary delays. The review shall be conducted by the court without with or without a jury, at the election of the municipality or the petitioner. The court may hear oral arguments and receive written briefs, and may shall take evidence intended to show either any of the following:

(1)       That the statutory procedure was not followed, or

(2)       That the provisions of G.S. 160-31.1, G.S. 160A-47 or G.S. 160A-58.1, as the case may be, were not met, or

(3)       That the provisions of  G.S. 160A-48, have not been met, or

(4)      That the recommendations of the Municipal Boundary Board or the approval of the Local Government Council pursuant to Part 7 of this Article were not arbitrary.  

(5)      The annexation is consistent with the policies described in G.S. 160A-45

(g)       The court may affirm the action of the governing board without change if the jury determines the annexation to be proper, or it may

(1)       Remand Declare the ordinance null and void to the municipal governing board for further
proceedings if the jury determines there are significant procedural irregularities. are
found to have materially prejudiced the substantive rights of any of the petitioners.  

(2) Remand Declare the ordinance null and void to the municipal governing board for
amendment of the boundaries to conform to the provisions of G.S. 160A-48 if it if the jury
finds that the provisions of  G.S. 160A-48  or G.S. 160A-58.1. as the case may be have not been met. provided, that the court cannot remand the ordinance to the municipal governing board with directions to add area to the municipality which was not included in the notice of public hearing and
not provided for in plans for service.

(2)       Reand the ordinance to the municipal governing board for amendment of the boundaries to conform to the provisions of  G.S. 160A-48  if it finds that the provisions of  G.S. 160A-48  have not been met; provided, that the court cannot remand the ordinance to the municipal governing board with directions to add area to the municipality which was not included in the notice of public hearing and not provided for in plans for service.

(3)       Remand the report to the municipal governing board for amendment of the plans for providing services to the end that the provisions of G.S. 160A-47  are satisfied.

(4)       Declare the ordinance null and void, if the court finds that the ordinance cannot be corrected by remand as provided in subdivisions (1), (2), or (3) of this subsection.

If any municipality shall fail to take action in accordance with the court's instructions upon remand within 90 days following entry of the order embodying the court's instructions, the annexation proceeding shall be deemed null and void. 

Add an appeal process to the two voluntary types of annexation that allows judge/jury to determine if provisions of the law have not been met.

(4) New subsection: Provides for review of LGC and MBB

(5) Codifies Nolan v Marvin case law (a NC Supreme Court decision)

(g) Removes the 'remand' portion of the statute. It is too expensive to allow the city to not do its due-diligence at the expense of the citizen that must continually contest the annexation in court.

(j)        If a petition for review is filed under subsection (a) of this section or an appeal is filed under G.S. 160A-49.1(g) (i) or G.S. 160A-49.3(g), and a stay is granted, then the time periods of two years, 24 months or 27 months provided in G.S. 160A-47(3)c, 160A-49(h), or 160A-49(j) are each extended by the lesser of the length of the stay or one year for that annexation.

(n) If an ordinance is declared null and void, all reasonable attorney’s fees and costs shall be awarded to the petitioner.

Added (n): Curtails the abuse of power by municipalities with deep pockets

§ 160A-53.  Definitions.

The following terms where used in this Part Article shall have the following meanings, except where the context clearly indicates a different meaning:

(1) "Contiguous area" shall mean any area which, at the time annexation procedures are initiated, either abuts directly on the municipal boundary or is separated from the municipal boundary by a street or street right-of-way, a creek or river, the right-of-way of a railroad or other public service corporation, lands owned by the city or some other political subdivision, or lands owned by the State of North Carolina.
 

(2) "Used for residential purposes" shall mean any lot or tract five two  acres or less in size on which is constructed a habitable dwelling unit. (1959, c. 1009, s. 9; 1973, c. 426, s. 74.)

(3) “Meaningful services” shall mean central water and sewer service, police protection, or fire protection.

(4) “Area in need of meaningful services” shall mean an area in which a majority of property owners have water service, sewer or septic service, police protection, or fire protection that is inadequate and clearly poses a threat to the health and safety to the area, and the property owners could not reasonably address the threat themselves through private or public means.

(5) "LGC" shall mean Local Government Commission

(6) "Board" shall mean Municipal Boundary Board  

(7) "Infrastructure" shall mean major trunk water mains and sewer outfalls and such water and sewer lines necessary to provide water or sewer to the property or to a point on a public street or road right-of-way adjacent to the property

(3),(4),(5),(6) (7)Added definitions

(a1)            Notwithstanding subsection (a) of the section, a city may annex an area not contiguous to its primary corporate limits when the area meets the standards set out in subsection (b) of this section and upon presentation to the governing board of a petition signed by at least seventy-five percent (75%) of the resident households or landowners or combination thereof within such area, provided fifty percent (50%) or more of the households in the area to be annexed have incomes, in total, that are two hundred percent (200%) or less than the most recently published United States Census Bureau poverty threshold. For the purposes of this subsection the petitioner may be either a resident-owner in real property of the lot or resident-renter in contract to the lot. The petition need not be signed by the owners of real property that is wholly exempt from property taxation under the Constitution and laws of North Carolina , nor by railroad companies, public utilities as defined in G.S. 62-3(23), or electric or telephone membership corporations.

(b)       A noncontiguous area proposed for annexation must meet all of the following standards:

(1)       The nearest point on the proposed satellite corporate limits must be not more than three miles from the primary corporate limits of the annexing city.

(2)       No point on the proposed satellite corporate limits may be closer to the primary corporate limits of another city than to the primary corporate limits of the annexing city, except as set forth in subsection (b2) of this section.

Bad policy in general: This proposal further promotes poor growth policy by allowing annexation up to 3 miles outside of town limits. Annexation is the wrong tool for providing water and sewer to remote areas. The logistics of providing services is absurd.

New statute: JLSCoMS recommendation IV.A.

Nearly the same language found in new statute for Contiguous annexation that allows economically depressed areas to have less than 100% voluntary annexation except this statute applies to SATELLITE annexations. 

Members of the commission questioned why satellites were included but were reluctant to vote against the measure because of the political nature of rejecting the provision for contiguous annexations.

Added: "or landowners"-Allows landowners the same ability to annex that is given resident households.

Same CONS apply here that applied for contiguous statute.

(3)       The area must be so situated that the annexing city will be able to shall provide the same services within the proposed satellite corporate limits that it provides within its primary corporate limits.

(4)       If the area proposed for annexation, or any portion thereof, is a subdivision as defined in G.S. 160A-376, all of the subdivision must be included. 

Close a loophole that some cities take advantage of by annexing areas and NOT providing services...they are able to provide service...they just do not. (Best examples: Selma, Benson)

(6)    Within one year of the date of the exemption those municipalities which are exempt pursuant to subsection (5) of this section are required to enter into a Joint Planning Agreement with any county wherein a satellite area exists.  In the event of failure to complete such an agreement within one year, then all subsequent satellite annexations and their rezoning shall require approval of the respective county Board of Commissioners until such time that an agreement is completed.

Examples of abuse of the exemption: Shallotte and Troutman (Troutman is not technically exempt but has proceeded with satellite annexations unregulated, exceeding the 10% ceiling.)

Joint Planning Agreement must be defined.

Prevents annexing by metes and bounds.

Best example: Ayden

Best example: Troutman

§ 160A-58.2.  Public hearing.

    Upon receipt of a petition for annexation under this Part, the city council shall cause the city clerk Municipal Boundary Board to investigate the petition, and to certify the results of his its investigation. If the clerk board certifies that upon investigation the petition appears to be valid, the council shall fix a date for a public hearing on the annexation. Notice of the hearing shall be published once at least 10  days before the date of hearing.

Prevents the "fox watching the henhouse" 

     At the hearing, any person residing in or owning property in the area or within 1/4 mile of the area proposed for annexation and any resident of the annexing city may appear and be heard on the questions of the sufficiency of the petition and the desirability of the annexation. If the council then finds and determines that (i) the area described in the petition meets all of the standards set out in G.S. 160A-58.1(b), (ii) the petition bears the signatures of all of the owners of real property pursuant to G.S. 160A-58.1(a) or qualified petitioners pursuant to G.S.160A-58.1(a1) within the area proposed for annexation (except those not required to sign by G.S. 160A-58.1(a)), (iii) the petition is otherwise valid and approved by the Municipal Boundary Board, and (iv) the public health, safety and welfare of the inhabitants of the city and of the area proposed for annexation will be best served by the annexation, the council may adopt an ordinance annexing the area described in the petition. The ordinance may be made effective immediately or on any specified date within six months from the date of passage. (1973, c. 1173, s. 2.)

Expands standing to those within 1/4 mile that might be affected by annexation, follows Indiana example

§ 160A-58.2A.  Assumption of debt.

(a)       If the city has annexed under this Part any area which is served by a rural fire department and which is in:

    (1)       An insurance district defined under G.S. 153A-233;

    (2)       A rural fire protection district under Article 3A of Chapter 69 of the General Statutes; or

    (3)       A fire service district under Article 16 of Chapter 153A of the General Statutes,

then beginning with the effective date of annexation if the city has not contracted with the rural fire department for fire protection, or when the rural fire department ceases to provide fire protection under contract, the city shall pay annually a proportionate share of any payments due on any debt (including principal and interest) relating to facilities or equipment of the rural fire department, if the debt was existing at the time of submission of the petition for annexation to the city under this Part.  The rural fire department shall make available to the city not later than 30 days following a written request from the city, information concerning such debt.  The rural fire department forfeits its rights under this section if it fails to make a good faith response within 45 days following receipt of the written request for information from the city, provided that the city's written request so states by specific reference to this section.

Closes loophole that prevents rural fire departments, when they continue as full responders within their service area, from being compensated. Prevents cities from taking advantage of "mutual-aid" requirements

§ 160A-58.2B. Contract with rural fire department.

Annexations made under this part shall be follow provisions in the same manner as under G.S. 160A-49.1

§ 160A-58.8. Recording and Reporting.

Annexations made under this part shall be recorded and reported in the same manner as under G.S. 160A-29. (1987, c. 879, s. 4.)

Map of annexed area, copy of ordinance and election results recorded in the office of register of deeds.

Whenever the limits of any municipal corporation are enlarged, in accordance with the provisions of this Article, it shall be the duty of the mayor of the city or town to cause an accurate map of such annexed territory, together with a copy of the ordinance duly certified, and the official results of the election, if conducted, to be recorded in the office of the register of deeds of the county or counties in which such territory is situated and in the office of the Secretary of State.  The documents required to be filed with the Secretary of State under this section shall be filed not later than 30 days following the effective date of the annexation ordinance.  All documents shall have an identifying number affixed thereto and shall conform in size in accordance with rules prescribed by the Secretary.  Failure to file within 30 days shall not affect the validity of the annexation.  Any annexation shall be reported as part of the Boundary and Annexation Survey of the United States Bureau of the Census. (1947, c. 725, s. 6; 1973, c. 426, s. 74; 1987, c. 715, s. 6, c. 879, s. 3; 1989, c. 440, s. 7; 1991, c. 586, s. 1.)

 Part 7. Local Government Commission oversight

G.S. 160A-58.50 Local Government Commission authority

The Local Government Commission shall

LGC oversight of municipal annexation process

(a) within 10 days, upon receipt and consideration of the Municipal Boundary Board's recommendation pursuant to G.S. 160A-58.63, have authority to approve or not approve municipal annexations under:

(1) Part 1 of this Article.
(2) Part 2 of this Article.
(3) Part 3 of this Article.
(4) Part 4 of this Article.  

Part 1-Voluntary Contiguous
Part 2-Involuntary <5000
Part 3-Involuntary >5000
Part 4-Voluntary NON contiguous

(d) determine the financial feasibility of providing for the infrastructure improvements if required by G.S. 160A-47(3)b.

(e) adopt a statewide policy for assessing landowners pursuant to local water and sewer infrastructure improvements with respect to G.S. 160A-47(3)b. The assessment policy will

     (1) follow the principles found in G.S. 160A-218. The Commission's decision as to the method of assessment shall be final and conclusive and not subject to further review or challenge;

     (2) ensure that major water lines and sewer outfalls installed to serve the area are not directly assessed solely to the landowners in the annexation area;

    (3) ensure that assessments will not be applied to the landowner until the respective infrastructure is provided to the property or to a point on a public street or road right-of-way adjacent to the property;

    (4) provide for one the following repayment periods;

        a. to be no less than the duration of the municipal bond that finances the infrastructure within the area, or

        b. when a municipal bond is not utilized to finance the infrastructure for the annexation area, a repayment period amortized over 20 years.

    (5) ensure that no assessments or availability fees for water or sewer infrastructure installations will be incurred by the landowner when the acreage of the lot is larger than the lot size permitted by the county health department for such a system, until the landowner actually connects to the respective system; and 

    (6) ensure that no availability fee or maintenance fee for water or sewer infrastructure will be incurred by the landowner that has paid an assessment for the respective installation but is not connected to the central water or sewer system.

(e) requires LGC to adopt statewide policy for water/sewer connections pursuant to involuntary annexations based on criteria set forth in statute

(e)(1) Statute 218-Basis for making assessments-details what methods can be used to most accurately assess landowners 

(e)(2) Prevents the landowner from being solely assessed for infrastructure outside of the neighborhood. Major lines expenses should be distributed amongst the larger customer base.

(e)(3) Assessments cannot be made until infrastructure is available to landowner:  JLSCoMA recommendation II.A. 

(e)(4) Set repayment period for assessments: JLSCoMA recommendation II.A.

(e)(5) Prevents allowing water and sewer assessments for low density areas that are sufficient to accommodate septic tanks and wells. 

(e) (6) When a landowner pays a water/sewer assessment but does not actually connect to the system he should not continue to pay for a sytem he is not using.

(f) determine whether a rural fire department or the municipal fire department shall provide full responder service to an area or portion thereof based on calculated response times.

Full responder status should be decided by an impartial third party, the LGC. Currently the city decides whether they are full responders, regardless of whether that is the most time-efficient choice or not. The city is motivated to be full responder to keep from compensating the rural department that may be better able to serve the area. Due to mutual aid regulations, the area is still served by the rural department but it is not compenstated.

G.S. 160A-58.51 Local Government Commission, creation of Municipal Boundary Board

(a) The Local Government Commission

         (1) may create a municipal boundary board for each county on its own initiative at any time; and
         (2) shall create a municipal boundary board within 30 days of the filing of a notice of intent to annex under G.S. 160A-49(i).

          (3) shall assist the municipal boundary board with technical and legal expertise concerning enforcement and compliance with this Article.

(b) Each board shall be composed of:
         (1) in a county with two or more municipalities:
             a.    two members who are elected county officers, appointed by the county legislative body; in the case of two counties evenly represented;
             b.    two members who are elected municipal officers from separate municipalities within the county, appointed by the municipal selection committee as required by subsection (3) of this section; and
             c.    three members who are residents of the county, none of whom is a county or municipal officer, appointed by the four other members of the municipal boundary board; and

        (2) in a county with only one municipality:

            a.    two members who are county elected officers, appointed by the county legislative body; in the case of two counties evenly represented;
            b.    one member who is a municipal officer, appointed by the governing body of the municipality; and
            c.    two members who are residents of the county, neither of whom is a county or municipal officer, appointed by the other three members of the municipal boundary board.

        (3) In each county in which there are two or more municipalities:

            a.    there shall be a municipal selection committee consisting of the mayor or his designated representative, of each municipality.
            b.    A majority of the members of the municipal selection committee constitutes a quorum.
            c.    The municipal selection committee shall appoint each municipal member of the Municipal Boundary Board and fill each vacancy in that position as it occurs.

(c) At the expiration of the term of each member appointed under this section, the member's successor shall be appointed by the same body that appointed the member whose term is expiring, as provided in this section. 

Members of board are county and city officials which in turn jointly appointed citizen members

(a)(2) starts with Resolution to Annex because NCLM wants to drop allowing process to start at Resolution of Intent.

G.S. 160A-58.53 Municipal Boundary Board member terms -- Staggered terms -- Chair -- Quorum -- Vacancy.

(a) Except as provided in Subsection (b) of this section, the term of each member of a boundary board is four years and begins and expires the first Monday in January of the applicable year.

(b) Notwithstanding Subsection (1), the terms of the first members of a board shall be staggered by lot so that:
          (1) on a seven-member board, the term of one member is approximately one year, the term of two members is approximately two years, the term of two members is approximately three years, and the term of two members is approximately four years; and
          (2) on a five-member board, the term of two members is approximately two years and the term of the other three members is approximately four years.

(c)      (1) The members of each boundary board shall elect as chair a person from their number whose term on the boundary board does not expire for at least two years.
          (2) The term of a boundary board chair is two years.

(d) A majority of the board constitutes a quorum, and board action requires a majority vote of the board.

(e) Each vacancy on a board of a member or an alternate member shall be filled for the remaining unexpired term of the vacating member by the body that appointed the vacating member under G.S. 160A-45.1

G.S. 160A-58.55 Disqualification of board member -- Alternate member.
(a) A member of the boundary board is disqualified with respect to an annexation proceeding before the board if that member owns property:

(1) within the area proposed for annexation; or
(2) that is in the unincorporated area within 1/4 mile of the area proposed for annexation.

(b) If a member is disqualified under Subsection (a) of this section, the body that appointed the disqualified member shall appoint an alternate member to serve on the commission for purposes of the annexation proceeding as to which the member is disqualified. 

G.S. 160A-58.57 Municipal Boundary Board authority -- Expenses -- Records.
(a) The boundary board for each county shall hear and decide, according to the provisions of this Part, each proposed annexation proceeding, with respect to an area the majority of which is located within that county.

(b) A boundary board may:
          (1) enforce rules of procedure adopted by the Local Government Commission for the orderly and fair conduct of its proceedings;
          (2) authorize a member of the board to administer oaths if necessary in the performance of the board's duties;
          (3) employ staff personnel and professional or consulting services reasonably necessary to enable the board to carry out its duties; and
          (4) incur reasonable and necessary expenses to enable the board to carry out its duties.

(c) The legislative body of each county shall, with respect to the boundary board in that county:
          (1) furnish the board necessary quarters, equipment, and supplies;
          (2) pay necessary operating expenses incurred by the board; and
         (3) reimburse the reasonable and necessary expenses incurred by each member appointed under Subsections G.S. 160A-58.51(b)(1)c or (b)(2)c, unless otherwise provided by interlocal agreement.
(d) Each county or municipal legislative body shall reimburse the reasonable and necessary expenses incurred by a board member who is an elected county or municipal officer, respectively.
(e) Records, information, and other relevant materials necessary to enable the board to carry out its duties shall, upon request by the board, be furnished to the boundary board by the personnel, employees, and officers of:

(1)   each county, local district, and special service district whose boundaries include an area that is the subject of a proceeding under the board's consideration; and
(2)   each municipality whose boundaries may be affected by action of the boundary board; and
(3)   any entity that may be affected by action of the boundary commission.

G.S. 160A-58.59 Considerations of the Municipal Boundary Board and Local Government Commission

(a) The municipal boundary board shall determine whether the proposed annexation is in the public interest and in the best interest of the city and county in the area sought to be annexed. The governing bodies of the city and county in the area sought to be annexed shall assist the board in making its decision. Such governing bodies shall provide all relevant information and records requested by the board. In making its determination, the board shall consider the following:

(1) Population and territory;

(2) Population density;

(3) Land area and land uses;

(4) Comprehensive plans, existing and proposed zoning and development regulations;

(5) Applicable interlocal service agreements

(6) Applicable interlocal annexation agreements between a cities;

(7) Per capita assessed valuation;

(8) Topography, natural boundaries, and drainage basins;

(9) Proximity to other populated areas; would the annexation area constitute a natural, geographical, economical and social part of the annexing municipality, a community of interest;

(10) Existence and preservation of prime agricultural soils and productive agricultural uses;

(11) Likelihood of significant growth in the area and in adjacent incorporated and unincorporated areas during the next seven years;

(12) Location and most desirable future location of community facilities;

(13) Will the municipality be able to provide to the annexation area meaningful municipal services and benefits not previously enjoyed by such area, and that the motive for annexation is not solely to increase revenues to the city;

(14) Effect of ordinances, governmental codes, and regulations on existing uses;

(15) Present cost and adequacy of governmental services and controls in area;

(16) Prospects of governmental services from other sources;

(17) Probable future needs for such services and controls;

(18) Probable effect of annexation or alternative on cost and adequacy of services and controls in area and adjacent area;

(19) Effect on the finances, debt structure, and contractual obligations and rights of all affected governmental units;

(20) Effect of the annexation on adjacent areas, on mutual economic and social interests, and on the local governmental structure of the county;

(21) Whether the county health department has determined that the annexation is necessary to protect the health of the residents in the annexation area

(22) Exclusions and irregularities in boundary lines are not the result of manipulation to meet standards found in this Article and is the area sought to be annexed a logical and feasible addition to the annexing municipality and the elimination of isolated unincorporated areas existing without adequate economical governmental services; and

(23) Whether the municipality has met its obligations under this Article to provide services to landowners in previous annexations.

G.S. 160A-58.61 Objectives of Municipal Boundary Board.
(a) The decisions of the boundary review board shall attempt to achieve the following objectives:
         (1) Preservation of natural neighborhoods and communities;

(2) Use of physical boundaries, including but not limited to bodies of water, highways, and land contours;

         (3) Creation and preservation of logical service areas;

         (4) Prevention of abnormally irregular boundaries;

         (5) Adjustment of impractical boundaries;

         (6) Protection of agricultural and rural lands that are designated for long term productive agricultural and resource use by a comprehensive plan adopted by the county legislative authority.

New Statute G.S. 160A-58.59 (above) lists the areas the MBB must consider in making its decision. Using this statute (160A-58.61) the MBB uses those "areas for consideration" and applies them to these objectives to help them reach their decision.

G.S. 160A-58.63 Municipal Boundary Board recommendation -- Time limit -- Limitation on approval of annexation.
(a) After a public hearing for an annexation proposal, the board may:
        (1) recommend the proposed annexation, either with or without conditions;
        (2) make minor modifications to the proposed annexation and recommend the proposed annexation, either with or without conditions; or
        (3) not recommend the proposed annexation.
        (4)         (1) recommend the proposed annexation, either with or without conditions;
        (2) make minor modifications to the proposed annexation and recommend the proposed annexation, either with or without conditions; or
        (3) not recommend the proposed annexation.
        (4) the board may not modify or not recommend a proposed annexation unless there is evidence on the record to support a conclusion that the annexation as proposed is inconsistent with one or more of the objectives under G.S. 160A-58.61. Any such decision must be supported by written findings and conclusions.

(b) The board shall issue a written recommendation on the proposed annexation within

        (1) 10 days after the conclusion of the hearing under G.S. 160A-31(d)
        (2) 30 days after the conclusion of the hearing under G.S. 160A-49(d)
        (3)  10 days after the conclusion of the hearing under G.S. 160A-58.2; and         (3)  10 days after the conclusion of the hearing under G.S. 160A-58.2; and

(c) shall send a copy of the decision to:
        (1) the Local Government Commission      
        (2) the legislative body of the county or counties in which the area proposed for annexation is located;
        (3) the legislative body of the proposed annexing municipality.

ZONING

§ 160A-385.  Changes.

(a)       Qualified Protests.

(3)       The foregoing provisions concerning protests shall not be applicable to any amendment which initially zones property added to the territorial coverage of the ordinance as a result of annexation or otherwise, or to an amendment to an adopted (i) special use district, (ii) conditional use district, or (iii) conditional district if the amendment does not change the types of uses that are permitted within the district or increase the approved density for residential development, or increase the total approved size of nonresidential development, or reduce the size of any buffers or screening approved for the special use district, conditional use district, or conditional district.

PROBLEM: There is no legitimate reason that rezoning of land during a forced annexation should have any different criteria for a challenge. Under current rezoning statutes, when surrounding landowners object to a rezoning, they are allowed to submit a 'protest petition'. When 20% petition the municipal governing board, a supermajority vote is required to approve the rezoning.

SOLUTION: remove restriction