1. ANNEXATION

2. WHY ANNEXATION CITIES PAY FOR A WIDE ARRAY OF SERVICES AND FACILITIES THAT BENEFIT ENTIRE REGIONS AND THE ENTIRE STATE. MOST STATES RECOGNIZE THAT CITIES SHOULD BE ASSISTED IN MAKING THESE EXPENDITURES THAT BENEFIT ENTIRE REGIONS AND THE WHOLE STATE. THE TEXAS APPROACH HAS BEEN TO COMPENSATE CITIES THROUGH THE AUTHORITY TO ANNEX

3. THREE QUESTIONS (THAT SCOTT HOUSTON SUGGESTS CITIES SHOULD ASK) WHY DOES THE CITY WANT TO ANNEX? TO CONTROL DEVELOPMENT; AND/OR TO EXPAND THE CITY’S TAX BASE. DOES THE CITY HAVE AUTHORITY TO ANNEX? HOME RULE CITY MAY DO ANYTHING AUTHORIZED BY ITS CHARTER THAT IS NOT SPECIFICALLY PROHIBITED OR PREEMPTED BY THE TEXAS CONSTITUTION OR STATE OR FEDERAL LAW. CHARTER AUTHORITY LIMITED BY TEXAS LOCAL GOVERNMENT CODE CHAPTERS 42 AND 43. WHAT ANNEXATION PROCEDURES MUST A CITY FOLLOW?

4. HISTORY OF ANNEXATION IN TEXAS BEFORE 1912 ANY ANNEXATION BY A CITY REQUIRED APPROVAL OF THE LEGISLATURE. 1912 TEXAS, CONSTITUTIONAL AMENDMENT, TEX. CONST. ART. XI, SEC. 5, APPROVED. ANY CITY WITH MORE THAN 5,000 RESIDENTS ABLE TO FORM A HOME RULE CITY. HOME RULE CITIES GAIN THE POWER TO TAKE ANY ACTION THAT IS NOT IN VIOLATION OF THE CONSTITUTION OR THE LAWS OF THE STATE, INCLUDING THE POWER TO ANNEX.

5. HISTORY OF ANNEXATION IN TEXAS THE MUNICIPAL ANNEXATION ACT. ENACTED IN 1963 NOW CODIFIED AS TEXAS LOCAL GOVERNMENT CODE CHAPTERS 42 AND 43 INTRODUCED THE CONCEPT OF EXTRATERRITORIAL JURISDICTION (ETJ). AN ETJ IS THE AREA OF LAND EXTENDING BEYOND THE CITY LIMITS OVER WHICH THE CITY MAINTAINS SOME CONTROL, INCLUDING THE ABILITY TO ANNEX IN THE FUTURE, AS CITY EXPANDS BY ANNEXATION ITS ETJ EXPANDS.

6. HISTORY OF ANNEXATION IN TEXAS RESTRICTED ANNEXATIONS TO 10% OF TOTAL SIZE OF MUNICIPALITY, ALLOWED FOR CARRYOVER BUT ANNEXATION COULD NEVER EXCEED 30% IN ANY YEAR. ESTABLISHED NOTICE AND HEARING REQUIREMENTS FOR ANNEXATION PROCEEDINGS. SPECIFIED HOW AN UNINCORPORATED AREA WITHIN AN ETJ MAY PETITION FOR ANNEXATION. RESTRICTED THE FORMATION OF POLITICAL SUBDIVISIONS WITHIN AN ETJ. ESTABLISHED A PROCEDURE FOR DISANNEXATION.

7. HISTORY OF ANNEXATION IN TEXAS STRIP ANNEXATION PROHIBITED. 1977 PROHIBITED ANNEXATION LESS THAN 500 FEET. 1987 INCREASED PROHIBITION TO LESS THAN 1000 FEET. THE ACT ALSO PLACED TIME LIMITS ON CITIES TO BEGIN CITY SERVICES CONSTRUCTION AND ACQUIRE CAPITAL IMPROVEMENTS. INITIALLY THE REQUIREMENT WAS THREE YEARS 1987 SHORTEN TO TWO YEARS. IN 1999, THE LEGISLATURE ENACTED HB 89, DESCRIBED AS THE MOST COMPREHENSIVE ANNEXATION LEGISLATION SINCE 1963

8. PROCEDURES FOR UNILATERAL ANNEXATION COSA CHARTER SECTION 3 PART 2. GRANTS CITY COUNCIL THE POWER TO ANNEX ADDITIONAL TERRITORY “AS MAY BE AUTHORIZED BY, AND IN THE MANNER AND FORM PRESCRIBED BY ANY GENERAL LAW OF TEXAS.” TEXAS LOCAL GOVERNMENT CODE SUBCHAPTER C PROVIDES THE PROCEDURES FOR UNILATERAL ANNEXATION UNDER A MUNICIPAL ANNEXATION PLAN.

9. PROCEDURES FOR UNILATERAL ANNEXATION THE AREA MUST BE IN THE CITY’S ETJ AND CONTIGUOUS TO THE CITY’S CORPORATE LIMITS. THE AREA MUST NOT BE AG EXEMPT OR THE OWNER MUST REFUSE TO ENTER INTO A DEVELOPMENT AGREEMENT. SECTION 43.035 OF THE TEXAS LOCAL GOVERNMENT CODE. BEFORE ANNEXATION MUST OFFER A DEVELOPMENT AGREEMENT TO OWNERS OF PROPERTY THAT IS APPRAISED FOR AD VALOREM TAX PURPOSES AS AGRICULTURAL, WILDLIFE MANAGEMENT, OR TIMBER MANAGEMENT. DEVELOPMENT AGREEMENT MUST: GUARANTEE THE CONTINUATION OF THE EXTRATERRITORIAL STATUS OF THE AREA; AND AUTHORIZE THE ENFORCEMENT OF ALL REGULATIONS AND PLANNING AUTHORITY OF THE CITY THAT DO NOT INTERFERE WITH THE USE OF THE AREA FOR AGRICULTURE, WILDLIFE MANAGEMENT, OR TIMBER.

10. PROCEDURES FOR UNILATERAL ANNEXATION ANNEXATION PLAN REQUIRED TO ADOPT BEFORE DECEMBER 1, 1999. PLAN TO INCLUDE PROPERTIES TO BE ANNEXED BEGINNING THE THIRD ANNIVERSARY AFTER ADOPTION. PLAN CAN BE AMENDED TO INCLUDE ADDITIONAL TERRITORY OR REMOVE TERRITORY. MUST WAIT THREE YEARS TO ANNEX ADDED LAND MUST WAIT A YEAR AFTER LAND WAS REMOVED FROM PLAN TO PUT BACK ON PLAN IF REMOVAL OCCURRED IN THE FIRST 18 MONTHS.

11. PROCEDURES FOR UNILATERAL ANNEXATION BEFORE THE 90TH DAY AFTER THE CITY ADOPTS OR AMENDS AN ANNEXATION PLAN, THE CITY IS REQUIRED TO GIVE WRITTEN NOTICE TO: EACH PROPERTY OWNER IN THE AFFECTED AREA, AS INDICATED BY THE APPRAISAL RECORDS FURNISHED BY THE APPRAISAL DISTRICT FOR EACH COUNTY IN WHICH THE AFFECTED AREA IS LOCATED; EACH PUBLIC ENTITY, AS DEFINED BY §43.05310, OR PRIVATE ENTITY THAT PROVIDES SERVICES IN THE AREA PROPOSED FOR ANNEXATION; AND EACH RAILROAD COMPANY THAT SERVES THE MUNICIPALITY AND IS ON THE CITY’S TAX ROLL IF THE COMPANY’S RIGHT-OF-WAY IS IN THE AREA PROPOSED FOR ANNEXATION.

12. PROCEDURES FOR UNILATERAL ANNEXATION SEC. 43.053 REQUIRES, AFTER ADOPTION OF THE ANNEXATION PLAN, THE CITY MUST COMPILE A COMPREHENSIVE INVENTORY OF SERVICES AND FACILITIES PROVIDED BY PUBLIC AND PRIVATE ENTITIES. REQUEST FOR INVENTORY SHOULD BE INCLUDED IN NOTICE UTILITIES, ROADS DRAINAGE FACILITY INVENTORY MUST INCLUDE ENGINEER REPORT DESCRIBING THE PHYSICAL CONDITION OF THE FACILITIES; AND A SUMMARY OF THE CAPITAL, OPERATIONAL AND MAINTENANCE EXPENDITURES. POLICE, FIRE AND EMS INVENTORY MUST INCLUDE: DISPATCH TIMES; SCHEDULE OF EQUIPMENT; STAFFING SCHEDULE; SUMMARY OF CAPITAL AND OPERATING EXPENSES CITY SHALL MAKE THE INVENTORY AVAILABLE TO THE PUBLIC INSPECTION 60 DAYS AFTER RECEIPT.

13. PROCEDURES FOR UNILATERAL ANNEXATION THE SERVICE PLAN. THE PRELIMINARY SERVICE PLAN: MUST BE PREPARE AFTER RECEIPT OF THE INVENTORY. MUST DETAIL THE SPECIFIC MUNICIPAL SERVICES THAT WILL BE PROVIDED TO THE AREA AFTER IT HAS BEEN ANNEXED. THE FINAL SERVICE PLAN MUST BE PREPARED BEFORE THE TENTH MONTH AFTER THE MONTH THE INVENTORY IS RECEIVED, BUT BEFORE THE FIRST ANNEXATION PUBLIC HEARING.

14. PROCEDURES FOR UNILATERAL ANNEXATION PRIOR TO INITIATING ANNEXATION PROCEEDINGS THE CITY COUNCIL SHALL: CALL TWO PUBLIC HEARINGS TO BE HELD AT SOME TIME WHICH IS NOT LESS THAN 10, NOR MORE THAN 20 DAYS FROM THE DAY OF PUBLICATION OF THE NOTICE OF THE HEARINGS; DIRECT NOTICE OF THE HEARINGS BY PUBLISHED IN A NEWSPAPER OF GENERAL CIRCULATION IN THE CITY AND THE AREA TO BE ANNEXED AND ON THE CITY’S INTERNET WEBSITE, SEND WRITTEN NOTICE SENT TO SCHOOL DISTRICTS, SERVICE PROVIDERS, AND RAILROADS IN THE AREA; INTERVAL BETWEEN THE PUBLICATION AND EACH HEARINGS MUST BE AT LEAST 10 BUT NO MORE THAN 20 DAYS.

15. PROCEDURES FOR UNILATERAL ANNEXATION AFTER THE PUBLIC HEARINGS THE CITY SHALL HOLD NEGOTIATIONS WITH PROPERTY OWNERS FOR PROVISION OF SERVICES TO AREA THE CITY MUST NEGOTIATE WITH THE PROPERTY OWNERS OR THE BOARD OF ANY SPECIAL DISTRICT IN THE AREA CONCERNING THE SERVICE PLAN FOR PROVISION OF SERVICES AFTER, OR IN LIEU OF, ANNEXATION. IF THE CITY IS NOT ANNEXING A SPECIAL DISTRICT, THE COMMISSIONERS COURT OF THE COUNTY WHERE THE AREA IS LOCATED APPOINTS FIVE LANDOWNERS TO NEGOTIATE WITH THE CITY. ID. AT §43.0562(B). IN ADDITION, IN LIEU OF ANNEXATION, A CITY IS AUTHORIZED TO ENTER INTO A CONTRACT WITH THE LANDOWNERS FOR THE PROVISION OF SERVICES, THE FUNDING OF THE SERVICES, THE CREATION OF ANY NECESSARY SPECIAL DISTRICT, GOVERNING PERMISSIBLE LAND USES AND COMPLIANCE WITH MUNICIPAL ORDINANCES, AND ANY OTHER TERMS. IF NEGOTIATIONS FAIL, AN ARBITRATOR WILL BE APPOINTED TO RESOLVE THE DISPUTE.

16. PROCEDURES FOR UNILATERAL ANNEXATION AFTER THE PARTY’S AGREE ON A SERVICE PLAN, OR THE ARBITRATOR’S DECISION, AND THE PASSAGE OF THE REQUIRED WAITING PERIOD, THE CITY COUNCIL ADOPTS AN ORDINANCE ANNEXING THE TRACT AND APPROVING THE FINAL SERVICE PLAN FOR THE TRACT. WHEN THE ANNEXATION ORDINANCE IS PASSED, A COPY OF THE SERVICE PLAN IS ATTACHED TO THE ORDINANCE, AND THE PLAN BECOMES A CONTRACTUAL OBLIGATION OF THE CITY.

17. QUESTIONS? HABIB H. ERKAN JR. HABIB.ERKAN@RAMPAGE-SA.COM T. DANIEL SANTEE DANIEL.SANTEE@RAMPAGE-SA.COM DENTON NAVARRO ROCHA BERNAL HYDE & ZECH, P.C. 2517 N. MAIN SAN ANTONIO, TX 78212 (210) 227-3243