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NCLM Annual Conference Annexation Reform Legislation PowerPoint PPT Presentation

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NCLM Annual Conference Annexation Reform Legislation. Frayda S. Bluestein October 24, 2011. Statutory Procedures Prior to Reform. Four statutory methods: Voluntary contiguous (100% petition required) Voluntary satellite (100% petition required)

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NCLM Annual Conference Annexation Reform Legislation

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NCLM Annual ConferenceAnnexation Reform Legislation

Frayda S. Bluestein

October 24, 2011

Statutory Procedures Prior to Reform

  • Four statutory methods:

    • Voluntary contiguous (100% petition required)

    • Voluntary satellite (100% petition required)

    • Involuntary by cities under 5,000 (urbanization standards/service requirements)

    • Involuntary by cities 5,000 or more (urbanization standards/service requirements)

  • Legislative annexation/deannexation by local act (no standards or requirements apply)

Annexation ReformS.L. 2011-396 (H 845)

  • Eliminates separate standards for small towns

  • Invalidates annexation if rejected by petition of owners of 60% of property in the area to be annexed

  • Requires cities to extend water and sewer to annexed property within 3.5 years

  • Requires annexation if petition by owners of 75% of property in high poverty areas

  • Allows annexation if petition by residents of 2/3 of households in high poverty areas

Not Changed

  • Standards for urbanization – standards for large cities now apply to all

  • Legislative annexation/deannexation always possible:

    • Separate legislation allows rejection of approved annexations.

      • S.L. 2011-173 (S 27), S.L. 2011-177(H 56): Kinston, Lexington, Rocky Mount, Wilmington, Asheville, Marvin, Southport, Fayetteville, Goldsboro

Denial By Petition

  • Annexation is denied if petitions from owners of 60% of the property in the affected area

    • Multiple owners; majority must sign

  • Guarantees notice early in the process

  • County tax assessor prepares list based on tax listings

  • Board of Election mails preprinted petitions and certifies results

  • City bears the cost

Water and Sewer

  • If the city provides or contracts to provide services, must allow property owners to request service to their property

  • Must provide notice of right to request service

  • Must extend to all properties who request it at no cost other than user fee

  • Must complete construction within 3.5 years of annexation effective date

  • Property owners who choose to receive services later may be charged based on graduated schedule set out in statute

Exemption for Farms

  • Land used for farm purposes (broadly defined) may not be annexed without the owner’s written consent

    • S.L. 2011-363 (HB 168)

    • Eliminates prior provisions regarding annexation of present use value property.

    • If consent is obtained, property is considered to be in the city for all purposes.

Annexation by Petition

  • City must annex if petition from owners of 75% of property in high poverty area

    • High poverty: 51% of households have incomes 200% or less than the current federal poverty threshold

    • Area must have 1/8 contiguity; may not exceed 10% of existing population

    • Must provide water and sewer to annexed area

    • Obligation may be relieved if cost of providing services exceeds capacity as defined in the statute

  • City may annex upon petition of 2/3 of residents in high poverty (“distressed”) area

Petition Process

  • What communication is allowed during the petition process?

    • Getting Your Message Across: What Can Public Officials Say In Support of Pending Policies or Proposals?

Legislative Summaries

  • SOG’s Legislative Summaries website:

  • Materials include bulletins, blog entries, teaching materials, etc.


  • Must extend water and sewer “to the house”

  • Water and sewer within 3½ years

  • Can’t annex farm land

  • Must annex high poverty areas on 75% owner petition

  • 60% petition veto



So What


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