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139 Regular Meeting September 23, 1996 Page 6 the Upper Watershed District at least in one instance compensated the landowner. Ms. Hughson stated she would assume the taxes on property in the floodplain on the Appraisal District's roll would be lower, and Mr. Gilley agreed. Bud Paulsen owns a home in Section 8 and pointed out most of this land has not been developed and wanted to know what the City's goals really are, and Mr. Gilley stated the goals provided are the City's goals for annexing the property and the City anticipates most of this land will be developed. Mr. Paulsen asked if the City would reinspect his septic system that was already approved by the County, and Mr. Gilley said no. No one else wished to speak, so Mayor Moore closed the public hearing. Mr. Guerra asked Mr. Gilley what percentage of the property was the dam itself, and Mr. Gilley stated 40% is the dam and reservoir. Mr. Guerra stated he does not think the City should ever annex for the purpose of profit, and if those who live out of San Marcos believe that, it is not the way he views that. Mr. Guerra expressed concern with what the Legislature will do with municipal authority related to annexations, because of what Austin and Houston have done. They have lessened cities ability and do not make cities look credible when they have annexed simply to increase their tax base. Mr. Guerra advised Mr. Hanzel he would not annex this property just to tax Mr. Hanzel's new home and the others who spoke who own property in this area, and stated that is not the purpose of~annexation and thinks all the Council agrees with that. Mr. Guerra stated there is a public policy value in reviewing and engaging in annexation when we are logically planning for the next five years. Mr. Gilley stated this is ultimately a policy decision and offered historical background information. This proposal was initiated based on a lot of public input and discussion over a period of several years. The San Marcos Horizons Master Plan Committee spent many hours developing that plan, one component of which is the annexation plan. This plan was reviewed and recommended to the Council several months ago and the Master Plan was adopted by Ordinance. Staff is following the annexation plan in place, and this was a number one priority to consider for annexation. Mr. Gilley stated he thinks it is appropriate to annex this area, and Staff's effort is in response to the Master Plan we have in place. If the Council chooses not to proceed with this, that is certainly a policy decision of the Council. Mayor Moore stated in 1985 it was determined future sections of the Willow Creek Subdivision would meet the City's subdivision standards for eventual annexation and provision of services, and agreed with Mr. Hart that large lot residential subdivisions do not pay their own freight or for the benefits it achieves. Mayor Moore also agreed with Mr. Guerra that if the only reason to annex an area is for revenue, that is a very poor reason to do it. Mayor Moore encouraged those who spoke during the public hearing to get with Staff and understand our intentions and benefits. Mr. Cox stated he thought it was important that everyone know the Master Plan Committee included ETJ members. Mr. Hart stated he has no problem defending orderly growth and knows many were involved in the Master Plan process, but he does not recall annexation of this specific piece of property and will not support this. Mr. Hart stated he thinks if we want to grow in an orderly fashion, we need to embrace the people of this area and provide them the details what we can do for them and why we want them to be a part of our community. Mr. Hart thinks this results in life altering changes and financial impact on people and does not-recall asking Staff to move forward with annexations in this fashion. It was consensus to consider an Annexation Ordinance. Mr. Cox recalls the Council accepting the Master Plan as it was proposed but deal with annexations on a tract by tract basis as presented by Staff in their implementation of the Master Plan. Mr. Cox thinks the discussion here is in perfect keeping with the procedure that was developed, and Mayor Moore agreed. Mayor Moore stated the Council looked at a plan styled an aggressive plan and held a discussion regarding not being very aggressive about anything, but rather being rational and orderly about it. Mr. Hart stated he remembered that conversation. Ms. Hughson stated she remembers the Council holding that discussion and as a result, the Council changed annexation plan to annexation review plan and deleted "aggressive" from the introductory paragraph. Mayor Moore stated there is a major public policy issue here, which is the rate our area is growing and the