Res 2014-119/Adopting an Annexation and Extraterritorial Jurisdiction (“ETJ”) Management Strategy

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Annexation Planning What is annexation? Annexation is the process by which a city extends its municipal services, regulations, voting privileges and taxing authority to new territory. It is one of the primary means by which cities grow. Cities annex territory to provide urbanizing areas with municipal services and to exercise regulatory authority necessary to protect public health and safety. Annexation is also a means of ensuring that current and future residents and businesses outside a city's corporate limits who benefit from access to the city's facilities and services share the tax burden associated with constructing and maintaining those facilities and services. Annexation and the imposition of land use controls may also be used as a tool to implement a comprehensive plan. Annexation is also a primary means by which cities benefit from development occurring in the ETJ. This is especially critical in cases where the city has either directly or indirectly facilitated that development. Statutory Framework As a home -rule city, San Marcos may annex territory on both a voluntary and an involuntary basis. Most of the Texas statutes associated with annexation are codified in Chapter 43 of the Texas Local Government Code. Chapter 43 establishes a number of general procedural requirements for all annexations. City staff shall monitor changes in state law and periodically recommend changes to applicable ordinances, this policy and internal procedures consistent with any changes in the law. Annexation Planning The City's annexation planning process includes two basic components: 1. Rolling Annexation Candidate List 2. Annual Annexation Program The Rolling Annexation Candidate List includes areas that can be reasonably expected to be annexed over a 10 year planning period as well as areas covered by development agreements under which the City has agreed to defer annexation. Areas will be added to the candidate list on a regular basis. Areas on the candidate list are evaluated on an annual basis and areas that are ready for annexation are proposed for inclusion in the Annual Annexation Program. The annual program is comprised of areas from the candidate list as well as areas for which annexation has been requested. Considerations for annexation evaluation Each annexation candidate area should be evaluated on its unique land use, environmental, fiscal and demographic characteristics. The following considerations will be used to determine whether a candidate area is ready for annexation in a given year. The evaluation is not a purely additive process, however. Some considerations outweigh others and the relative weight may change from year to year. For instance health and safety considerations may trump financial impact to the City and ranch land with no development proposals pending one year may be the site of a major proposal the next. The evaluation considerations are a means of ensuring that the right questions are asked. 3111age