Annexations and ETJ - Involuntary City Initiated

Annexations
North Carolina State law establishes the basic framework for a municipality to expand through annexation of additional properties into its corporate limits. The various methods and procedures by which annexation may be accomplished as well as the qualification criteria an area must meet in order to be considered for annexation are set forth in the State annexation statutes. The laws recognize cities as the basic provider of essential governmental services needed to support urbanized areas. In return for the ability to annex, municipalities must extend local urban services such as police and fire protection, water and sewer lines, recreational services, solid waste collection and support for the local public street system.

Each municipality may develop its own annexation program within the guidelines and procedures set by the State's legislation. The City of Raleigh regularly uses two methods of annexation: 1) Voluntary or petition annexation and 2) Involuntary or city-initiated annexation.

Raleigh has administered an annual program of city-initiated annexations for over thirty years. Such annexations generally involve existing developed properties and require a more complex approval process than petition annexations. One of the first initial steps in the city initiated annexation process is the adoption of a resolution of consideration. For Raleigh, this resolution of consideration identifies general areas under consideration for annexation by a Council adopted map. Although all areas within Raleigh's jurisdiction not currently in the city limits are shown as general areas under consideration for annexation, the City identifies smaller more specific areas later within the annexation process. See Areas Under Consideration Map for Annexation 2011 and recently adopted Areas Under Consideration Map for Annexation 2012. For specific city-initiated annexation areas, detailed reports must be prepared indicating how an area meets statutory urban development intensity standards and most importantly how the City intends to provide and finance the extension of municipal services to an area.

Cities are allowed to annex contiguous areas which are developed for urban purposes as defined in the General Statutes of North Carolina. For cities with over 5,000 persons, an area developed for urban purposes, generally speaking, meets any one of the following standards: 1) has an average population density of 2.3 persons per acre; 2) has an average population density of one person per acre with 60 percent of acreage in lots less than three acres and with 65 percent of lots less than one acre in size; 3) has 60 percent of all lots developed for residential, commercial, industrial, institutional or governmental purposes with 60 percent of the undeveloped and residential acreage in lots three acres or less in size; 4) is the entire area of any county water and sewer district as long as certain contract provisions are met; or 5) Has all lots developed for commercial, industrial, governmental, or institutional purposes.

Cities proposing annexation under this method must prepare detailed reports showing how the qualification standards are met and how the City plans to extend and finance the delivery of municipal services to the area upon annexation. The City must be capable of providing the area with services equal to those currently provided within the existing city. This method of annexation requires property owner notification and a public information meeting followed by a public hearing. Generally, City-initiated annexations are larger in area than petition annexations and take place after development has occurred.

Annexation areas may be approved by the North Carolina General Assembly. This method of annexation is more likely to be used when unusual circumstances exist and the municipal boundaries cannot be expanded under any other method.

Annexation Agreements
In addition to working with Wake County on these new areas for urban expansion, Raleigh has also negotiated with the neighboring jurisdictions of Cary, Garner, Knightdale, Rolesville and Wake Forest in establishing annexation agreement lines. These boundaries have been set based on adopted annexation agreements which establish water and sewer service areas and defined areas in which Raleigh's future annexations can take place. With the adoption of urban service areas by Wake County and the establishment of annexation agreement lines, Raleigh has been able to more clearly define its future growth area. This will enable the City to better plan for its future and make clearer policy decisions on utility extensions and future growth patterns.

2011 Approved Areas

Annexation Report 2011:
The summary report for the 2011 proposed City Initiated Annexation areas can be found in the related information section of this page.

Carolina Power & Light - Blue Ridge Rd (8.78 acres):
The site is located off Blue Ridge Rd and Forestview Rd and consists of a CP & L Substation, a small commercial lot used for parking and a vacant lot. Proposed Effective Date: June 30, 2011

Carolina Power & Light - Tryon Rd (7.42 acres):
Consisting of a CP & L substation, the site is located north of Tryon Rd at its intersection with Centennial Ridge Way. Proposed Effective Date: June 30, 2011

Falls of Neuse Rd R-O-W, Tract 1 (2.03 acres):
Falls of Neuse, Tract 1 is located between Lake Villa Way and Fonville Road. Proposed Effective Date: June 30, 2011

Falls of Neuse Rd R-O-W, Tract 2 & 3 (16.7 acres):
Falls of Neuse Rd, Tract 2 is located north of Litchford Rd to the City of Raleigh Water Treatment Plant. Falls of Neuse Rd, Tract 3 is located from Raven Ridge Rd north to the Falls Pointe Subdivision. A portion of both right of way areas are outside of Raleigh's ETJ boundary. These areas were not identified as areas under consideration on the Areas under Consideration for Annexation Map for at least one year prior to annexation proceeding; therefore, the effective date for the Falls of Neuse, Tracts 2 & 3 must be delayed for one year. Proposed Effective Date: June 30, 2012

Services received upon annexation:

• Raleigh Police Department (emergency assistance, crime prevention, traffic enforcement, investigations, animal control, etc.)
• Fire Department (first emergency responder, medical and rescue assistance, fire code inspections, fire prevention education, etc.)
• Public Works (Street Maintenance - street resurfacing, sidewalk repair, pot hole repair, street cleaning, curb and gutter repair, storm drainage maintenance, etc.); (Transportation services - street names and signs, traffic signs and signals, pavement markings, CAT public transportation, etc.); (Street lighting - install and maintain street lighting)
• Solid Waste Services (collects: garbage, yard waste, recycling, bulky items, special loads, seasonal leaves, etc.)
• Stormwater Drainage (maintains storm drains, water quality monitoring, soil/erosion/illicit discharge investigation, etc.)
• Parks and Recreation (maintains - art centers, parks, lakes, greenways, community centers, etc.); (provides - leisure activities, summer camps, corporate event planning, aquatics, adult and senior activities, etc.)
• Public Utilities (provides water and sewer service to city residents as well as Garner, Knightdale, Wendell, Zebulon, Wake Forest and Rolesville areas); (manages re-use water system as a non-potable water source); (maintains water and wastewater treatment plants); (supports operation centers that provide meter reading, maintenance, construction and warehouse functions)
• Other (services available from these departments - Planning, Community Services, Community Development, Public Affairs, Administrative Services, etc.)

Water & Sewer Utility Assessments and Fees
When the City of Raleigh annexes an area by City-initiated action, the City is required to make water and sewer services available to newly annexed properties if requested. The sanitary sewer and water lines may exist in the City-initiated annexed area at the time of annexation or if not available, then the City must provide the mains (mains twelve (12") inches or larger in diameter) needed to serve a City-initiated annexed area within two (2) years following the annexation. The cost of installing water and sewer lines is assessed to the properties which are adjacent to the lines and are capable of connecting to the City system. The assessment fee can be based on either a "fee per foot," a "fee per lot," or a "fee per acre" depending on method approved by City Council. In residential subdivisions fees are often calculated on a fee per lot basis, with all lots paying the same amount.

When utilities are made available to an annexed property, the assessment fee must be paid regardless of whether the property owner connects to the service. (See City Taxes and Fees, Fiscal year 2010-2011 for current water and sewer assessment rates.) Assessment fees may be financed over a 10-year period at six percent interest. The assessment rates are adjusted annually. For properties outside the city limits where water and sewer lines are already available to the property, a fee-in-lieu of assessment may have been set. This fee is due upon tapping onto the line or upon annexation whichever comes first. Call the Public Works Department at (919) 996-3030 for public utility fee-in-lieu of assessment information.

If the owner of an occupied dwelling unit or operating commercial or industrial property files a utility extension request within 5 days after the annexation public hearing, the City must provide for the extension of utility lines to the property or a point on a public street or road right-of-way within two years from the date of the annexation. After annexation, requests for water or sewer service will be handled on a first -come, first- serve basis.

The choice of connecting to available City utility lines rests with the property owner. Connection fees include acreage fees, which are charged to recover a portion of the cost of constructing larger major water or sewer lines serving an area; tap fees, which are charged to cover the cost of the service line from the utility main within the street right-of-way to the property line; nutrient reduction fees, which are charged to recover a portion of the cost involved in removal of nutrients in the wastewater and water treatment process; and meter installation fees to cover cost of installing water meter.

Current acreage, tap, nutrient reduction, and meter installation fee charges are also available from the Inspections Department at (919) 516-2176 for commercial properties and (919) 996-4200 for residential properties. When the City of Raleigh annexes an area through the petition annexation process, developers or property owners are responsible for utility extensions or installations.

If a property is already receiving water and sewer service from the City of Raleigh when annexed, assessment fees and tap fees have already been paid or were included as part of the property's initial development costs. When a property already receiving service is annexed, bimonthly water and sewer rates will be reduce to the inside city limits rates which are currently half the outside city limits rate.

Street & Sidewalk Assessments
If a street or sidewalk construction project was previously undertaken by the City for improvement of public right-of-way adjacent to a newly annexed property, then a fee-in-lieu of assessment may have been set for the property adjacent to the improvement. This assessment charge becomes due upon annexation into the city limits. Call the Public Works Department at (919) 996-3030 for further information on fee-in lieu of assessment information.

City Tax Billing (Real & Personal Property)
The effective date of City-initiated annexations is generally set for June 30. In this case, newly annexed property owners will pay their first City tax bill for a full year of City services running from July 1 through June 30. This bill is mailed in July or August and is payable without penalty through December. The property tax listing and billing process works as follows:

January
All real property in Wake County is permanently listed and any improvements are reviewed and assessed based on building permits as well as on site inspection information. All non-permitted real estate improvements, business personal property and individual personal property (mobile homes, boats, boat motors, aircraft and unlicensed vehicles) as of January 1 of each year must be listed by the property owner during the month of January. Property owners who are annexed will be billed based on the same information used for their county taxes on the same property. The Wake County Revenue Department handles all property tax billing for the City of Raleigh.

June
City Council sets the City property tax rate for the fiscal year beginning July 1 and ending June 30.

June 30
This is the effective date of annexation. City services begin.

July through August
Property tax bills (including both the City and the County taxes) will be mailed to City property owners by the Wake County Tax Office. The tax bills will reflect the cost of services delivered to property owners July 1 through June 30.

September 1
Property tax bills are due.

September through December
Taxes may be paid to the Wake County Revenue Department without penalty.

January 5
Last date on which property taxes may be paid without interest penalties.

Newly annexed property owners may need to make arrangements with their mortgage companies for establishing proper escrow accounts, if applicable, for meeting local tax liabilities. Otherwise, property owners may be faced with a cost increase with a minimum amount of time to provide adequate escrow accounts to the mortgage company.

When properties are annexed with an effective date other than June 30, property owners are billed for a prorated portion of taxes based on the proportion of the fiscal year the property is within the city limits.

Extraterritorial Jurisdiction (ETJ)
The City's Planning and Zoning jurisdiction can extend up to 3 miles from the contiguous city limits to cover portions of the unincorporated County. Subdivision approvals, building permits and rezoning cases in these areas are all processed through the City's staff, Planning Commission and City Council, as needed. The purpose of this is to anticipate portions of the unincorporated county that are urbanizing, and bring them under a set of urban standards for development. The ETJ process tries to anticipate that these areas will become part of the City Limits in the future. By causing development in these areas to be constructed to City standards, the extension of City zoning and subdivision standards into these urbanizing areas of the County ensures that they can be adequately and efficiently served by municipal services when that time comes. County residents of ETJ areas are represented on both the Board of Adjustment and the Planning Commission.