Fiscal Note
Adoption and subsequent State approval of this cooperative plan would establish the framework for the delivery of City services to newly annexed properties within the Town of Burke as well as future revenue sharing payments from the City to the Town, including those services and revenue sharing payments related to lands annexed during 2006. The plan also establishes the terms and costs associated with the City's acquisition of the existing Burke Utility District #1.
For properties already annexed during 2006, service delivery responsibility has already shifted from the Town to the City, and the City would be required to make annual revenue sharing payments to the town of $50,000 per year for a five year period from 2008 through 2012. Burke would retain 2006 property taxes collected during 2007, and the City would first collect 2007 taxes due in 2008. Based on current property values, the $50,000 annual payment would far exceed the taxes collected during the initial years of the agreement prior to development. However, it is expected that future development within this area will substantially offset the revenue sharing payment in subsequent years.
Under the terms of the cooperative plan, additional annexations that occur during the 30 year protected period would be accompanied by a 5 year revenue sharing payment to the Town equal to the last year's taxes collected by the Town, consistent with current statutory requirements that apply to all attachments and annexations. The amount of any such payments will only be known when any future annexations occur and will be subject to Common Council approval at that time.
The cooperative plan also provides that the City will make a lump sum payment of $423,400 to the Town of Burke to acquire the assets and operation of the Burke Utility District #1, an existing water and sewer utility district. While it is anticipated that the utility ownership transfer would occur during 2007, there is no provisio...
Click here for full text