GENERAL ASSEMBLY OF NORTH CAROLINA

SESSION 1993

S	1 

SENATE BILL 686

Short Title:  Large City Services/Annexation.	(Public)
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Sponsors: Senators Odom; and Blackmon.
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Referred to:  Local Government and Regional Affairs.
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April 5, 1993

A BILL TO BE ENTITLED
AN ACT TO PROVIDE THAT A LARGE CITY MUST PROVIDE WATER AND SEWER SERVICES WITHIN ONE YEAR OF THE EFFECTIVE DATE OF THE ANNEXATION, OR THE AREA IS REMOVED FROM THE CORPORATE LIMITS AND AD VALOREM TAXES REFUNDED, AND TO CLARIFY THE ANNEXATION OF UNDEVELOPED LAND BY A LARGE CITY.
The General Assembly of North Carolina enacts:
Section 1.  G.S. 160A-47(3) reads as rewritten:
"(3)	A statement setting forth the plans of the municipality for extending to the area to be annexed each major municipal service performed within the municipality at the time of annexation.  Specifically, such plans shall:
a.	Provide for extending police protection, fire protection, solid waste collection and street maintenance services to the area to be annexed on the date of annexation on substantially the same basis and in the same manner as such services are provided within the rest of the municipality prior to annexation.  A contract with a rural fire department to provide fire protection shall be an acceptable method of providing fire protection.  If a water distribution system is not available in the area to be annexed, the plans must call for reasonably effective fire protection services until such time as waterlines are made available in such area under existing municipal policies for the extension of waterlines.  A contract with a private firm to provide solid waste collection services shall be an acceptable method of providing solid waste collection services.
b.	With respect to municipalities with a population of less than 350,000 according to the last federal decennial census, provide for extension of major trunk water mains and sewer outfall lines into the area to be annexed so that when such lines are constructed, property owners in the area to be annexed will be able to secure public water and sewer service, according to the policies in effect in such municipality for extending water and sewer lines to individual lots or subdivisions.  If requested by the owner of an occupied dwelling unit or an operating commercial or industrial property in writing on a form provided by the municipality, which form acknowledges that such extension or extensions will be made according to the current financial policies of the municipality for making such extensions, and if such form is received by the city clerk not less than 30 days before adoption of the annexation ordinance, provide for extension of water and sewer lines to the property or to a point on a public street or road right-of-way adjacent to the property according to the financial policies in effect in such municipality for extending water and sewer lines.  If any such requests are timely made, the municipality shall at the time of adoption of the annexation ordinance amend its report and plan for services to reflect and accommodate such requests.
b1.	With respect to municipalities with a population of 350,000 or more according to the last federal decennial census, provide for extension of major trunk water mains and sewer outfall lines into the area to be annexed, and provide for extension of water and sewer lines to all property in the area to be annexed, or to a point on a public street or road right-of-way adjacent to the property so that when such lines are constructed, property owners in the area to be annexed will be able to secure public water and sewer service, without paying any other fee except a tap fee.
c.	If extension of major trunk water mains, sewer outfall lines, sewer lines and water lines is necessary, set forth a proposed timetable for construction of such mains, outfalls and lines as soon as possible following the effective date of annexation.  In any event, the plans shall call for construction to be completed within:
1.	Two years of the effective date of annexation with respect to municipalities with a population of less than 350,000 according to the last federal decennial census; or
2.	One year of the effective date of the annexation with respect to municipalities with a population of 350,000 or more according to the last federal decennial census.
d.	Set forth the method under which the municipality plans to finance extension of services into the area to be annexed."
Sec. 2.  G.S. 160A-49(e)(3) reads as rewritten:
"(3)	A specific finding that on the effective date of annexation the municipality will have funds appropriated in sufficient amount to finance construction of any major trunk water mains and sewer outfalls and such water and sewer lines as required in G.S. 160A-47(3)b. or G.S. 160A-47(3)b1. found necessary in the report required by G.S. 160A-47 to extend the basic water and/or sewer system of the municipality into the area to be annexed, or that on the effective date of annexation the municipality will have authority to issue bonds in an amount sufficient to finance such construction. If authority to issue such bonds must be secured from the electorate of the municipality prior to the effective date of annexation, then the effective date of annexation shall be no earlier than the day following the statement of the successful result of the bond election."
Sec. 3.  G.S. 160A-49(k) reads as rewritten:
"(k)	With respect to municipalities with a population of less than 350,000 according to the last federal decennial census, if a valid request for extension of a water or sewer line has been made under G.S. 160A-47(3)b, and the extension is not complete at the end of two years after the effective date of the annexation ordinance, the owner of the property may petition the Local Government Commission for abatement of taxes to be paid to the city which have not been levied as of the expiration date of the two-year period, if such petition is filed not more than 60 days after the expiration of the two-year period. If the Local Government Commission finds that the extension to the property was not complete by the end of the two-year period, it shall enter an order directing the city not to levy any further ad valorem taxes on the property until the fiscal year commencing after completion of the extension. In addition, if the Local Government Commission found that the extension to the property was not completed by the end of the two-year period, and if it finds that for any fiscal year during the period beginning with the first day of the fiscal year in which the annexation ordinance became effective and ending the last day of the fiscal year in which the two-year period expired, the city made an appropriation for construction, operation or maintenance of a water or sewer system (other than payments the city made as a customer of the system) from the fund or funds for which ad valorem taxes are levied, then the Local Government Commission shall order the city to release or refund an amount of the petitioner's property taxes for that year in question in proportion to the percentage of appropriations in the fund made for water and sewer services. By way of illustration, if a net amount of one hundred thousand dollars ($100,000) was appropriated for water or sewer construction, operation or maintenance from a fund which had total expenditures of ten million dollars ($10,000,000) and the petitioner's tax levy was one thousand dollars ($1,000), the amount of release or refund shall be ten dollars ($10.00).
With respect to municipalities with a population of 350,000 or more according to the last federal decennial census, if the municipality was required by G.S. 160A-47(3)b1. to extend a water and sewer line to a property, and the extension is not complete at the end of one year after the effective date of the annexation ordinance, the owner of the property may, no later than 90 days after expiration of the one-year period, petition the Local Government Commission for an order:
(1)	Removing:
a.	The property; and
b.	Any adjacent right-of-way annexed by the same proceeding, to the center line of the right-of-way
	from the corporate limits of the municipality; and
(2)	Directing the municipality to release or refund the petitioner's property taxes for that municipality levied since the annexation became effective.
The order shall direct the municipality to amend its official map and provide for filing the order with the Secretary of State, the Register of Deeds of the county where the property is located, and with the board of elections conducting elections for the municipality."
Sec. 4.  G.S. 160A-48(c) reads as rewritten:
"(c)	Part or all of the area to be annexed must be developed for urban purposes. An area developed for urban purposes is defined as any area which meets any one of the following standards:
(1)	Has a total resident population equal to at least two persons for each acre of land included within its boundaries; or
(2)	Has a total resident population equal to at least one person for each acre of land included within its boundaries, and is subdivided into lots and tracts such that at least sixty percent (60%) of the total acreage consists of lots and tracts five acres or less in size and such that at least sixty-five percent (65%) of the total number of lots and tracts are one acre or less in size; or
(3)	Is so developed that at least sixty percent (60%) of the total number of lots and tracts in the area at the time of annexation are used for residential, commercial, industrial, institutional or governmental purposes, and is subdivided into lots and tracts such that at least sixty percent (60%) of the total acreage, not counting the acreage used at the time of annexation for commercial, industrial, governmental or institutional purposes, consists of lots and tracts five acres or less in size.
With respect to municipalities with a population of 350,000 or more according to the last federal decennial census, in determining the amount of acreage included within the boundaries of the area to be annexed under this subsection, acreage to be annexed which consists of streets between developed lots or within neighborhoods may not be excluded from the calculations under some other provision of this Part."
Sec. 5.  G.S. 160A-48(d) reads as rewritten:
"(d)	In addition to areas developed for urban purposes, a governing board may include in the area to be annexed any area which does not meet the requirements of subsection (c) if such area either:
(1)	Lies between the municipal boundary and an area developed for urban purposes so that the area developed for urban purposes is either not adjacent to the municipal boundary or cannot be served by the municipality without extending services and/or water and/or sewer lines through such sparsely developed area; or
(2)	Is adjacent, on at least sixty percent (60%) of its external boundary, to any combination of the municipal boundary and the boundary of an area or areas developed for urban purposes as defined in subsection (c).
With respect to municipalities with a population of 350,000 or more according to the last federal decennial census, the total amount of acreage which may be annexed under this subdivision shall not exceed ten percent (10%) of the total area to be annexed.  The purpose of this subsection is to permit municipal governing boards to extend corporate limits to include all nearby areas developed for urban purposes and where necessary to include areas which at the time of annexation are not yet developed for urban purposes but which constitute necessary land connections between the municipality and areas developed for urban purposes or between two or more areas developed for urban purposes."
Sec. 6.  Sections 1 through 3 of this act apply with respect to annexation ordinances adopted on or after the date of ratification.  Sections 4 and 5 of this act apply to any annexation ordinances which become effective on or after the date of ratification of this act, including ordinances subject to pending litigation.