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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

NCLM Annual ConferenceAnnexation Reform Legislation

Frayda S. Bluestein

October 24, 2011

statutory procedures prior to reform
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 reform s l 2011 396 h 845
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
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
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
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
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
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
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
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



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