ANNEXATION
Annexation is the process by which municipalities incorporate new territory into their municipal boundaries.
In addition to benefits to local businesses, annexation may bring additional services and public funds to invest in the community. Potential additional revenues include sales tax, bed tax, and a portion of state-shared revenues, such as state income tax, highway user revenue, vehicle license tax and state sales tax. These additional revenues should
ensure services, such as police, parks & recreation and transportation, are continued at current or improved levels of service.
On February 5, 2003, the Town Council adopted a policy that updated the established guidelines for future annexations to ensure they are logical, practical, financially feasible, and in the best interest of the Town. The policy is reviewed every five years.
This 2003 policy specifies that a fiscal impact analysis must be conducted for all annexations. The purpose of the evaluation is to analyze the potential financial impacts of annexation on Town facilities and services; estimate revenues from local sales taxes, state shared revenues, and other fees; and assess short and long-term capital improvement projects needed to serve the area, or the upgrading of an area already built. This requires developing growth projections, assessing market issues, measuring existing demand for county services, and projecting future costs of service, among other evaluations. Each fiscal impact analysis will be uniquely developed for the potential annexation area based upon the current or proposed use on the property.
BACKGROUND
The Town was originally incorporated in 1974 with a small 2.4 square mile area, and through a series of annexations since then, has resulted in the community that exists today. All but three of the 20 subsequent annexations since incorporation have been less than three square miles, 12 of which were less than one square mile. The largest annexation incorporated nearly 13 square miles, an area that includes most of the Rancho Vistoso planned area development.
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