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Population Density Executive Summary of the Preliminary Report Regarding the City of Homer's Proposal for Annexation of an Estimated 25.64 Square Miles October 2001 Page One DCED also expresses concern that the City of Homer’s annexation Petition would render the City of Kachemak an enclave surrounded by the City of Homer. The prospect of one city government surrounding another city govern- ment raises a number of fundamental public policy concerns. DCED recognizes that legitimate issues pertaining to the local government structure in the greater Homer area remain unresolved by its recommendation (and would also remain unresolved by any alternative available to the LBC under the current proceedings). For that The Alaska Department of Community and Economic Development (DCED), which serves as staff to the inde- pendent Local Boundary Commission (LBC), has issued its Preliminary Report on the City of Homer’s Petition to annex an estimated 25.64 square miles. DCED is re- quired by law to prepare both a preliminary report and final report on the annexation proposal prior to a public hearing on the matter before the LBC. Citing a number of circumstances, DCED indicates that a conservative approach to the City of Homer boundary proposal is warranted at this time. Accordingly, the DCED Preliminary Report recommends that the LBC reduce the territory proposed for annexation from an estimated 25.64 square miles to 3.3 square miles. The area recommended by DCED for annexation consists of Millers Landing (encompassing 0.26 square miles) and a 3.04 square mile “urban area” adjoining the existing boundaries of the City of Homer extending from the Sterling Highway to the City of Kachemak. Although its recommendation for annexation is limited to 3.3 square miles, DCED notes that reasonable arguments can be made for adding two other areas comprising an additional 1.08 square miles. A map showing the 3.3 square miles recommended for annexation and the additional 1.08 square miles is provided on pages 2 and 3 of this Executive Summary. While expressing confidence in the ability of City of Homer officials and residents of the prospective expanded City to manage change effectively, the expansive nature of the City’s proposal is among the circumstances cited by DCED as the basis for its conservative recommendation. DCED notes, for example, that the City’s proposal would expand its population by more than half and would increase the land within the City of Homer by a factor of 3.3. The population and tax base in the territory petitioned for annexation is greater than that found in most cities throughout Alaska. Scope of Change Proposed by City of Homer 6,150 Residents 3,946 Residents - 1,000 2,000 3,000 4,000 5,000 6,000 7,000 Existing Population Proposed Population Population 36.64 Square Miles 11 Square Miles 0 5 10 15 20 25 30 35 40 45 Existing Jurisdiction (land) Proposed Jurisdiction (land) Square Miles
Transcript of Executive Summary of the Preliminary Report Regarding the ... fileWhile expressing confidence in the...
Po
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tyExecutive Summary of the PreliminaryReport Regarding the City of Homer'sProposal for Annexation of an Estimated25.64 Square Miles
October 2001
Page One
DCED also expresses concern that the Cityof Homer’s annexation Petition would renderthe City of Kachemak an enclave surrounded bythe City of Homer. The prospect of one citygovernment surrounding another city govern-ment raises a number of fundamental publicpolicy concerns.
DCED recognizes that legitimate issuespertaining to the local government structure inthe greater Homer area remain unresolved byits recommendation (and would also remainunresolved by any alternative available to theLBC under the current proceedings). For that
The Alaska Department of Community and EconomicDevelopment (DCED), which serves as staff to the inde-pendent Local Boundary Commission (LBC), has issuedits Preliminary Report on the City of Homer’s Petition toannex an estimated 25.64 square miles. DCED is re-quired by law to prepare both a preliminary report andfinal report on the annexation proposal prior to a publichearing on the matter before the LBC.
Citing a number of circumstances, DCED indicatesthat a conservative approach to the City of Homerboundary proposal is warranted at this time.Accordingly, the DCED Preliminary Report recommendsthat the LBC reduce the territory proposed forannexation from an estimated 25.64 square miles to 3.3square miles. The area recommended by DCED forannexation consists of Millers Landing (encompassing0.26 square miles) and a 3.04 square mile “urban area”adjoining the existing boundaries of the City of Homerextending from the Sterling Highway to the City ofKachemak.
Although its recommendation for annexation islimited to 3.3 square miles, DCED notes that reasonablearguments can be made for adding two other areascomprising an additional 1.08 square miles. A mapshowing the 3.3 square miles recommended forannexation and the additional 1.08 square miles isprovided on pages 2 and 3 of this Executive Summary.
While expressing confidence in the ability of City ofHomer officials and residents of the prospectiveexpanded City to manage change effectively, theexpansive nature of the City’s proposal is among thecircumstances cited by DCED as the basis for itsconservative recommendation. DCED notes, forexample, that the City’s proposal would expand itspopulation by more than half and would increase theland within the City of Homer by a factor of 3.3. Thepopulation and tax base in the territory petitioned forannexation is greater than that found in most citiesthroughout Alaska.
Scope of Change Proposed by City of Homer
6,150Residents
3,946Residents
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1,000
2,000
3,000
4,000
5,000
6,000
7,000
Existing Population Proposed Population
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on
six hundred thousand dollar “profit” from annexation.Tax relief might also mitigate concerns on the part ofannexation critics by reducing the adverse financialeffects on property owners in the annexed territory.Lastly, tax relief would diminish arguments fordifferential property tax zones in the annexed area.
The estimated $338,517 annual unreserved netgain is equivalent to 1.16 mills of the estimatedtaxable value within the expanded City of Homerboundaries recommended by DCED. If the entireprojected unreserved net gain were utilized forproperty tax relief throughout the expanded City ofHomer, it would reduce the property tax differentialbetween the City of Homer and the adjoining terri-tory by forty-two percent, from 2.75 mills to 1.59mills. The average taxable value of a home in thearea recommended for annexation is $129,003. The1.59 mill tax differential on such would amount to$205.11 annually, or $17.09 per month.
Approximately one hundred twenty-five copies ofDCED’s Preliminary Report are being distributed forreview. Recipients will include the Petitioner, each ofthe parties that filed formal Responsive Briefs, localmedia, and others. Multiple copies will also beprovided to the Homer Public Library and the HomerCity Clerk to be made available to the public. Addi-tionally, the report is available to the public oncompact disc from the Homer Public Library andHomer City Clerk. Further, the complete report willbe available for public review on the Internet duringthe review period1 at:
http://www.dced.state.ak.us/mra/LBC/
lbcactivities.htm
The Preliminary Report consists of thefollowing components:
• Chapter 1 – Background (pages 1 –19);
• Chapter 2 – Proceedings to Date andFuture Proceedings (pages 20 – 38);
• Chapter 3 – Synopsis of ViewsExpressed in the Petition,Responsive Briefs, and Reply BriefConcerning the AnnexationStandards (pages 39 – 160);2
• Chapter 4 – Application of theAnnexation Standards by DCED(pages 161 – 348);
• Chapter 5 – Recommendations tothe Local Boundary Commission(pages 349 – 368); and
• Appendices (comprising 43 pages).
DCED stresses that its conclusions andrecommendations in the Preliminary Report aresubject to change. Moreover, DCED emphasizesthat its recommendations are not binding on theindependent Local Boundary Commission.
Page Four
To be considered in development of DCED’s final report, comments on the PreliminaryReport must be received by 5 p.m., November 6, 2001 at:
Local Boundary Commission StaffDepartment of Community & Economic Development550 West 7th Avenue, Suite 1770Anchorage, Alaska 99501-3510Fax: 907-269-4539e-mail: [email protected]
1 Because of its size, there may be a slight delay inposting the Preliminary Report to the Internet.Materials may be posted incrementally (e.g.,beginning with DCED’s analysis [Chapter 4] andrecommendation [Chapter 5]).
2 The Petition, fourteen Responsive Briefs, andReply brief comprise thousands of pages(including exhibits).
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reason, DCED encourages residents and propertyowners in the greater Homer area, along withofficials of the City of Homer, City of Kachemak,and Kenai Peninsula Borough, to undertakeconstructive dialog regarding the ideal long-termstructure for local government in the greaterHomer area.
The 3.3 square miles recommended for annex-ation encompass the vast majority of the substan-tial commercial development within the 25.64square miles petitioned for annexation. The 3.3square miles recommended for annexation alsoinclude areas that are generally more heavilysubdivided and more densely populated than the22.34 square mile remnant portion of the territorypetitioned for annexation. For example, DCEDestimates that Millers Landing has a populationdensity of 285 persons per square mile and thatthe 3.04 square mile urban area has a populationdensity of 264 persons per square mile. Thosefigures are, respectively, 63% and 51% greaterthan the average population density of all citygovernments in Alaska. The population density ofMillers Landing and the urban area is greater, forexample, than is the case in the City of Kenai,City of Seward, and City of Kachemak. In con-trast, the 22.34 square mile remnant portion of
the territory petitioned for annexation has apopulation density of about 60 persons per squaremile, roughly one-third of the average populationdensity of Alaska’s 146 city governments.
DCED estimates that revenues of the City ofHomer will increase by $942,085 annually basedon DCED’s boundary recommendation. Annualexpenses of the City are projected to increase by
$353,683, leaving anannual net gain of$588,402. Of that, anestimated $249,885would have to be depos-ited into the City’sreserve funds for theHomer Accelerated RoadProgram and the HomerAccelerated Water/SewerProgram, leaving aprojected annual unre-served net gain of$338,517.
While stopping shortof formally recommend-ing that the City ofHomer apply the pro-jected unreserved netgain to property taxrelief, DCED notes thatthe prospect of such isattractive for a numberof reasons. First and fore-most, it would achieve one ofthe implicit fundamentalgoals of the City with respect
to annexation – tax relief forproperty owners who haveheretofore financed servicesavailable to a growing popula-
tion outside the City of Homer.It would also mute criticism –unfounded though it would be –that the City is making nearly a
Page ThreePage Two
Allocation of $942,085 Revenue Gainfrom DCED’s Recommended
Annexation
Population Densities(persons per square mile of land)
359 337 285 264 236 232 197 175 168 600
50
100
150
200
250
300
350
400
City of Homer(existing)
City of Homer(DCED's
recom. post-annex.
Boundaries)
MillersLanding
3.04 sq. mi.urban area
City ofKachemak
City of Kenai City ofSeward
StatewideAverage for
Cities
City of Homer(City's prop.Post-annex.Boundaries)
22.34 sq. mi.remnantportion ofterritory
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Den
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Millers Landing arearecommended for annexation(0.26 square miles)
Urban area recommended forannexation (3.04 Square Miles)
Remnant territory notrecommended for annexation(22.34 Square Miles)
Additional area that mightwarrant annexation(0.06 Square Miles)
Additional area that mightwarrant annexation(1.02 Square Miles)
City of Kachemak(1.83 square miles)
Road Projects Reserve
$124,942.50
Water & Sewer Projects Fund
$124,942.50
New Expenses$353,683
Unreserved Net Gain$338,517
Po
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tyExecutive Summary of the PreliminaryReport Regarding the City of Homer'sProposal for Annexation of an Estimated25.64 Square Miles
October 2001
Page One
DCED also expresses concern that the Cityof Homer’s annexation Petition would renderthe City of Kachemak an enclave surrounded bythe City of Homer. The prospect of one citygovernment surrounding another city govern-ment raises a number of fundamental publicpolicy concerns.
DCED recognizes that legitimate issuespertaining to the local government structure inthe greater Homer area remain unresolved byits recommendation (and would also remainunresolved by any alternative available to theLBC under the current proceedings). For that
The Alaska Department of Community and EconomicDevelopment (DCED), which serves as staff to the inde-pendent Local Boundary Commission (LBC), has issuedits Preliminary Report on the City of Homer’s Petition toannex an estimated 25.64 square miles. DCED is re-quired by law to prepare both a preliminary report andfinal report on the annexation proposal prior to a publichearing on the matter before the LBC.
Citing a number of circumstances, DCED indicatesthat a conservative approach to the City of Homerboundary proposal is warranted at this time.Accordingly, the DCED Preliminary Report recommendsthat the LBC reduce the territory proposed forannexation from an estimated 25.64 square miles to 3.3square miles. The area recommended by DCED forannexation consists of Millers Landing (encompassing0.26 square miles) and a 3.04 square mile “urban area”adjoining the existing boundaries of the City of Homerextending from the Sterling Highway to the City ofKachemak.
Although its recommendation for annexation islimited to 3.3 square miles, DCED notes that reasonablearguments can be made for adding two other areascomprising an additional 1.08 square miles. A mapshowing the 3.3 square miles recommended forannexation and the additional 1.08 square miles isprovided on pages 2 and 3 of this Executive Summary.
While expressing confidence in the ability of City ofHomer officials and residents of the prospectiveexpanded City to manage change effectively, theexpansive nature of the City’s proposal is among thecircumstances cited by DCED as the basis for itsconservative recommendation. DCED notes, forexample, that the City’s proposal would expand itspopulation by more than half and would increase theland within the City of Homer by a factor of 3.3. Thepopulation and tax base in the territory petitioned forannexation is greater than that found in most citiesthroughout Alaska.
Scope of Change Proposed by City of Homer
6,150Residents
3,946Residents
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1,000
2,000
3,000
4,000
5,000
6,000
7,000
Existing Population Proposed Population
Po
pu
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six hundred thousand dollar “profit” from annexation.Tax relief might also mitigate concerns on the part ofannexation critics by reducing the adverse financialeffects on property owners in the annexed territory.Lastly, tax relief would diminish arguments fordifferential property tax zones in the annexed area.
The estimated $338,517 annual unreserved netgain is equivalent to 1.16 mills of the estimatedtaxable value within the expanded City of Homerboundaries recommended by DCED. If the entireprojected unreserved net gain were utilized forproperty tax relief throughout the expanded City ofHomer, it would reduce the property tax differentialbetween the City of Homer and the adjoining terri-tory by forty-two percent, from 2.75 mills to 1.59mills. The average taxable value of a home in thearea recommended for annexation is $129,003. The1.59 mill tax differential on such would amount to$205.11 annually, or $17.09 per month.
Approximately one hundred twenty-five copies ofDCED’s Preliminary Report are being distributed forreview. Recipients will include the Petitioner, each ofthe parties that filed formal Responsive Briefs, localmedia, and others. Multiple copies will also beprovided to the Homer Public Library and the HomerCity Clerk to be made available to the public. Addi-tionally, the report is available to the public oncompact disc from the Homer Public Library andHomer City Clerk. Further, the complete report willbe available for public review on the Internet duringthe review period1 at:
http://www.dced.state.ak.us/mra/LBC/lbcactivities.htm
The Preliminary Report consists of thefollowing components:
• Chapter 1 – Background (pages 1 –19);
• Chapter 2 – Proceedings to Date andFuture Proceedings (pages 20 – 38);
• Chapter 3 – Synopsis of ViewsExpressed in the Petition,Responsive Briefs, and Reply BriefConcerning the AnnexationStandards (pages 39 – 160);2
• Chapter 4 – Application of theAnnexation Standards by DCED(pages 161 – 348);
• Chapter 5 – Recommendations tothe Local Boundary Commission(pages 349 – 368); and
• Appendices (comprising 43 pages).
DCED stresses that its conclusions andrecommendations in the Preliminary Report aresubject to change. Moreover, DCED emphasizesthat its recommendations are not binding on theindependent Local Boundary Commission.
Page Four
To be considered in development of DCED’s final report, comments on the PreliminaryReport must be received by 5 p.m., November 6, 2001 at:
Local Boundary Commission StaffDepartment of Community & Economic Development550 West 7th Avenue, Suite 1770Anchorage, Alaska 99501-3510Fax: 907-269-4539e-mail: [email protected]
1 Because of its size, there may be a slight delay inposting the Preliminary Report to the Internet.Materials may be posted incrementally (e.g.,beginning with DCED’s analysis [Chapter 4] andrecommendation [Chapter 5]).
2 The Petition, fourteen Responsive Briefs, andReply brief comprise thousands of pages(including exhibits).
36.64Square Miles
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