City Council Policy
The City Council
has established policies for enclave annexations. These policies are reflected in a standard
enclave annexation agreement offered to all enclave landowners.
(View
a copy of the Standard Voluntary Annexation Agreement).
This agreement reflects input from enclave owners, staff research, and the
direction of City Council.
On December 17, 2002, the City Council adopted a resolution
to further clarify enclave annexation policies.
Enclave
Annexation Resolution.
The Council has endorsed an additional policy addressing
nonconforming uses that were not permitted by County zoning prior to
annexation. This policy establishes a special review process for such
uses to resolve disputes if nonconforming uses are objected to by the
neighborhood.
Definition of Enclaves
County enclaves are areas within
unincorporated Larimer County and completely surrounded by the City of Loveland
municipal boundaries for more than three years. The definition of
enclaves and the statutory procedure and authority for enclave annexations
can be found in Colorado Revised Statutes
31-12-106.
Why
is the City doing this?
Annexation
of enclaves will improve the efficiency of providing government
services;
relieve the County of a service burden; and will allow enclaves to be brought up to city standards for roads, utilities and site
improvements, such as sidewalks, over time. Also,
enclaves benefit from some City services already, and it is better
for
Loveland
if
these areas are brought into the City. The City's agreement to annex
enclaves has been included in its intergovernmental agreement.
Summary
of Voluntary Enclave Annexation Agreement and Benefits
●The
City is responsible for any cost associated with the annexation
application.
●Raw water
fees are deferred until the time of development or redevelopment.
●If
there are nonconforming uses, they can continue under the City’s
zoning rules as long as they were allowed in the County.
Owners must
provide documentation that the use was permitted in the County, or
historical records that the use pre-dated zoning regulation by the County.
●An
extension of time under abandonment provisions is granted for livestock
so that existing livestock uses can be discontinued for up to 24 months
and recommenced instead of just 12 months.
●Zoning
would be established based discussions with owners.
Considerations will include existing use and County zoning, and the
City’s Future Land Use Plan.
●The
City will not require upgrading to City standards for streets, or
connections to City utilities (except for cases where properties are
not connected to the City’s electric power which is done at City
expense) unless development or redevelopment is proposed, in which
case, the normal requirements of the development approval process apply.
●Also, general
benefits that are normally available to properties and resident in the
City, will be available to all annexed enclaves.
These include lower rates for water and sewer connection charges, a
50 percent cost sharing for new sidewalks, and all normally provided City
services, such as fire and public safety.
Tax
Affect of Annexation
Disclosure Statement: For a more detailed statement
of taxes and fees applicable after annexation than is provided here,
please refer to the
Disclosure
Statement and
Attachment A and
Attachment B.
Property Taxes: After annexation, a City of Loveland property tax is assessed, however,
the tax assessment for the Loveland Fire District is removed, so the net
tax increase may be less than the total City tax assessment. Tax
assessment increases for residential and commercial properties are
illustrated in the examples below:
Example:
Residential Property
Actual Value:
$150,000
Taxable Value:
$11,945
Add City Property Tax Mills1:
9.564
Subtract Loveland Fire District Mills:
5.808
Net added Tax Mills: 3.756
Added Annual Property Tax:
$44.86
Example:
Commercial Property
Actual
Value:
$500,000
Taxable Value:
$145,000
Add City Property Tax Mills:
9.564
Subtract Loveland Fire District Mills:
5.808
Net added Tax Mills: 3.756
Added Annual Property Tax:
$544.62
Note
1:
All tax mill assessment rates are per $1,000 of taxable value.
Sales and Use Tax:
A
retail sales tax would apply to any retail sales within enclaves after
annexation. This tax would apply to any business that sells retail goods.
Also the City applies a use tax to vehicles and
building materials based on the "point of sale". For example, once
annexed, purchases of vehicles or building materials outside the city
limits of the City of Loveland will be taxed.
Utility Issues
Water and
Sewer: Annexed enclave properties are not required to connect to
City water and sewer utilities. However, if a septic system does not
meet County health standards, the County may require a connection to the
City's sanitary sewer. Charges for connections to City water and sewer
utilities are less after annexation.
Water Rates: Rates for City water are less. Water rates
drop from 150% of the normal rate to the inside the City rate (i.e. 100%).
Storm Drainage
and Street Maintenance Fees:
Storm drainage and
street maintenance fees also may apply to to properties after annexation.
These fees are based on the use of the property (e.g. street maintenance
fees apply to only commercial and industrial properties.)
Waste Removal
and Recycling: All
properties in the City must pay the City's "recycling" fee, which provides
pick-up of recycled waste and access to the City's Recycling Center at 400
N. Wilson Avenue.
Liquor
Occupational Tax: Any business that serves or sells alcoholic
beverages, when annexed, must obtain a City Liquor License. The
license must be renewed annually. Please contact
the City Clerk's Office for the type of license needed and the amount.
Occupational
License: For some occupations, when annexed an occupational license
is required. Circuses
or shows pay a daily rate, bowling alleys and shooting alleys pay per
alley, and billiards pay per table. Please contact the City Clerk's office
to determine if a license is required and the actual cost.
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