The City Council adopted the current Limits of Annexation Map on May 23, 2016. The Annexation Policy requires the City to review and consider updates to the policy and map whenever the Capital Improvements Plan is revised. Council approved the 2018-2022 Capital Improvements Plan on March 27, 2017. The Council made amendments to the City Annexation Policy at its meeting on May 8. These recommendations for a map amendment follow the revised Policy. The Council is expected to conduct a public hearing and take formal action on the Annexation Committee map amendment recommendations at this meeting.

In making its recommendations to expand the Limits of Annexation Map Red Area in 2017, staff considered the ability to serve areas outside the existing City limits with existing resources, effects on City residents, and programmed improvements, including the Capital Improvement Plan (CIP). The Committee also strives not to favor one department’s ability to provide service over another department’s limitations.

In considering the Annexation Committee's recommendations, the Council may:

• Approve the Annexation Committee's recommendation that the City of Billings Amend the Limits of Annexation Map.
• Modify the Annexation Committee's recommendations.  This option would require that the Council delay final action until the June 12 meeting because the changes must be adopted by Resolution and staff would need a few days to amend the map as directed by Council.
• Conduct the public hearing but take no action to amend the Limits of Annexation Map at this time, not bringing property into the Red Area as recommended by staff.

Annexation of property to the City of Billings increases the City’s tax base. At the same time, the City bears the cost of additional service demands. The Annexation Policy and the Limits of Annexation Map are management tools to help City staff and the Council balance this cost versus benefit of adding property to the City and providing services to that property. The proposed Map amendments would have an impact on City services as additional property outside of the current Limits of Annexation Map area would be brought into the City Annexation Petition Area for immediate annexation to the City and provision of services. While the Committee does not have specific financial estimates for serving these two new properties if annexed, the Committee discussed at length the properties' distance to services and the effects on public safety services and response time. There is further discussion of these issues in the Background section of this memo.

The Annexation Committee in 2015 recommended that the City Council consider conducting a cost of service analysis to help in determining the cost-to-benefit ratio of allowing certain property proposed to be developed in certain ways to be annexed into the City. The Council favored this recommendation and the Council will be following up on discussion of a Cost of Service Study at a Work Session in September 2017.

The City Council first adopted an Annexation Policy and accompanying Map 15 years ago on May 28, 2002.The original adoption of the Policy was driven by annexations in the early 2000s of areas like Rehberg Ranch and Briarwood that were placing significant service demands on City services and the Council realized it needed a formal process and criteria to make future annexation decisions. To provide guidance on Annexation Policy and Map amendments, an Annexation Committee, consisting of representatives from the Parks, Recreation and Public Lands, Police, Fire, Public Works, Transit, Administration, and Planning Departments, Billings School District 2, and County Water District of Billings Heights advises the City Council. The Committee reviews map amendment requests from private property owners as well as City Departments, and also makes recommendations on updates to the Policy and Map brought to the Committee from City staff.  The current adopted policy established two limits of annexation. The City Annexation Petition Area (Red) defines an area where annexation petitions may be supported in the short term. The Long Range Urban Planning Area (Orange) covers areas where City services may be extended but would require additional analysis and funding to support those services.

The City of Billings has annexed more than 4 square miles since 2004 (38.65 to 43 sq. mi.), when the Policy and Limits of Annexation Map were further refined to be similar to what they are today. The community’s growth over this 13 year period has challenged the City’s ability to balance serving new areas and maintaining a high level of service to present citizens.  The committee has been cautious in recommending any expansion of the annexation areas because expansion may add to the challenges of achieving that balance.

The Committee has maintained the premise that since the City in the past determined its ability to serve property already in the City Annexation Petition Area, the City’s commitment to considering annexing property already in the Red Area should be maintained. This approach is something the Council may make further determinations on, as annexations are at the complete discretion of the City Council, but the Committee wants to ensure the Council understands its approach to both Limits of Annexation Map Amendments and Annexation Petition requests annually.
 
Limits of Annexation Map Amendment Requests
The Committee has met three times from December 2016 through April 2017 to discuss revisions to the Policy and Map. Committee recommendations on some Policy amendments were brought to the Council at its May 8 Regular Meeting. This memo is focused on one map amendment recommendation based on the Policy amendments the Council approved. The Committee received one request from two property owners and their agent for a map amendment. There were no internal City staff requests for map amendments for City-owned property. The two property owners and their agent requested to include property in the City Annexation Petition Area (Red), bringing it from outside of the Long Range Urban Planning Area.

Staley/Forbes/Oakland (West Billings)
Rimrock Road and 70^th Street West - Amended Tract 2A, Amended Tracts 2 and 3, C/S 2465 and Tract 1, C/S 1871.
This request involves about 116 acres of land at the northwest corner of the intersection of Rimrock Road and 70th Street West. The property is currently used for dry land farming with no buildings on it. The Oakland Companies would like to annex the property to the City and continue similar residential single-family development that is adjacent to the subject property to the east in Copper Ridge Subdivision.

The request is unusual as the property is currently located outside of the City's Limits of Annexation Map jurisdiction. It is neither within the Long Range Urban Planning Area or the City Annexation Petition Area. The request is to bring the property directly to the City Annexation Petition Area for immediate annexation without first bringing it into the Long Range Urban Planning Area. This approach does not follow the City’s past practice of first having owners request to bring a property that is outside of the Limits of Annexation Map into the Long Range Urban Planning Area. The applicant prepared an Urban Planning Study and took the position that since all of the work for both a Long Range Urban Planning Area request and a Red Area request have been met, the City should consider the request and find it complies with the Annexation Policy.

The Annexation Committee finds this request should be evaluated under the new Section 3(b) Consideration of property outside the Long Range Urban Planning Area being brought directly into the City Annexation Petition Area. The Committee found that the request met the criteria outlined in Section 3(b) as follows:

• An Urban Planning Study has been completed on the subject property and the City has performed long range water and sewer service studies that include the property.
• City water and sewer lines are directly adjacent to the property in Rimrock Road and Copper Bluffs Circle, and are sized appropriately to serve development on the subject property.
• The subject property is directly adjacent to the existing City Limits.
• The adjacent property already in the City is being developed to City standards as part of Copper Ridge Subdivision, 6th Filing  and was designed to connect via Copper Bluffs Circle to the subject property.
• City service providers, including Public Works, Police, and Fire state that they are able to adequately serve the property without immediate increases in resources. However, Police and Fire staff indicated that response times may increase under current staffing and facilities with added service demands.

Annexation Committee Comments: Overall, City staff supported including this property in the City Annexation Petition Area on the Limits of Annexation Map because of the unusual circumstances regarding adjacent developed property in the City and existing oversized water and sewer infrastructure that was stubbed to the property at the City's direction. There were some concerns regarding service demand and distance to services as well as the Committee's interest overall in the City first focusing on serving areas already in the City Annexation Petition Area.

Public Works
Public Works staff stated they would like to see areas currently in the Red area develop and less expanding of boundaries far from City service center. However, Public Works is able to serve the property through existing infrastructure (water, sewer) and with its Street and Traffic, and Solid Waste operations. Public Works staff did indicate that since the property on the south side of Rimrock Road in this area was not expected to be annexed into the City it would be important to ensure Rimrock Road across the south side of the property was built to City standard.
 
PRPL
Parks, Recreation and Public Lands staff stated the City park system needs to develop some large regional parks in West Billings to accommodate the user demand the City has now. The addition of more residential development, while not addressing the current regional park demand, is a challenge for providing park services, according to staff. Developing Cottonwood Park and securing land for additional regional parks in the area would address this service concern.

MET
MET Transit staff stated that MET is not able to serve this property. The closest MET Transit service is at the intersection of Shiloh Road and Rimrock Road, about 3.5 miles from the subject property. From a general transportation planning perspective, MET Transit staff stated that having development in the area meet City standards instead of County standards would be positive in the long term.
 
Administration
City Administration staff expressed concern about the property being outside of the Limits of Annexation Map's jurisdiction but also acknowledged the usual circumstances of having the property already served by water and sewer infrastructure, and roads. The new allowance in the Annexation Policy to consider serving properties in these kind of unusual situations is a tool that may help in certain circumstances, but the City should continue to evaluate how it uses the Annexation Policy and Map going forward to manage growth and service impacts.
 
Planning
Planning staff also acknowledged the property already is set up to be served by the City, given the existing infrastructure and adjacent property developed in the City. Staff did note that the subject property is 11 miles from the Billing Operation Center, almost 3 miles from the newest Fire Station on 54^th Street West, about 7 miles from Stewart Park MET Transfer Center, and at the very tip of the City Limits on its western side. Staff stated that the City should continue to carefully asses expansion of the Limits of Annexation Map in terms of impacts to City services and the long term implications of service delivery.
 
Police
Police staff stated the Department can serve the area as it is nearby to where the Police now patrol in West Billings. Staff did note that as demand for services increases and more property is added to the City, response times are negatively affected and additional resources will be needed.

Fire
Fire Department staff noted that in 2006-2007 there were requests to include the subject property in the annexation area (The City reviewed requests two years in a row in 2006-2007 to include this same property in the annexation area and it was not included at that time). Staff pointed out the infrastructure concerns, water service and pressure, and sewer, were not in place at that time as they are now. A new reservoir has been built to improve water pressure and storage capacity in the area, and water and sewer lines are now at the property line of the subject property. Staff stated that water is the main concern for the Fire Department and so it is critical Public Works is on board with the proposal and the infrastructure that will be provided. Fire Department staff also stated the Fire Department’s ability to provide services is impacted negatively as additional area is added to the City Limits in terms of response times. The Fire Department is conducting an update of its Station and Staffing Study in 2017-2018 to review its service levels and locations that will help with future resource needs.

RECOMMENDATION FOR STALEY/FORBES/OAKLAND PROPERTY
The Annexation Committee recommends the City Council address this request as per Section 3(b) of the City Annexation Policy and amend the Limits of Annexation Map to include the Staley/Forbes/Oakland property in the City Annexation Petition Area (Red).

Public comment will be taken at the May 22 City Council public hearing concerning the Annexation Committee's recommended Limits of Annexation Map amendments. The public hearing has been advertised as required in the Billings Times. Agents for the two property owners requesting amendments provided informal comments during the Committee meetings and were informed of this meeting and provided the staff memos.

In making its recommendations, the Annexation Committee takes into consideration many plans and policies, including, but not limited to, the City's current Water and Wastewater Master Plan, the current Storm Water Master Plan, the 2016 City of Billings Growth Policy, the 2014 Billings Urban Area Long Range Transportation Plan, neighborhood or area plans as applicable, and the CIP. These recommendations are based on an effort to be consistent with adopted policies, plans and approved CIP projects, and attempt not to favor one department’s ability to provide service over another department’s limitation.