ANNEXATION. The Handbook for Georgia Mayors and Councilmembers 1

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2 ANNEXATION Growing and prosperous Georgia cities create a growing and prosperous Georgia. Although cities comprise only 6.8% of Georgia s land area, approximately 40% of the state s population lives in cities. And that number is growing because Georgia s cities provide value and responsive local government to residents and businesses alike. Georgia cities are home to 55% of the commercial property, 44% of the industrial property and 56% of all tax exempt property in the state. Despite the fact that over half of all tax exempt property in the state is located within cities, the property in cities still generates greater taxing power per acre than property in unincorporated areas. An even more remarkable statistic is that the economies of Georgia s cities generate 84.1% of the state s gross domestic product. State law recognizes the importance of growing cities to the economic health of Georgia by stating that: municipal corporations are created for the purpose of providing local governmental services and for ensuring the health, safety, and welfare of persons and the protection of property in areas being used primarily for residential, commercial, industrial and institutional purposes. 1 Because one reason cities exist is to provide urban services to densely populated or developing areas, it follows that cities be allowed to grow to accommodate more intense development as well as property owners and citizens that wish to enjoy the benefits of city services. Cities also provide a unique sense of place and community identity. Annexation is typically driven by property owners and citizens living in unincorporated areas that wish to have their property or residence added to a neighboring city s jurisdiction and thus receive municipal services and other benefits of being in the city limits. Although cities may provide some services outside of their territorial limits, areas added to a city through annexation receive the benefit of all applicable municipal services. While some annexations occur because an adjacent city provides services not available in the unincorporated area, in many instances property owners desire annexation because a city can provide a heightened or improved level of service. For example, many city residents enjoy better ISO ratings and consequently lower homeowner s insurance rates because of the enhanced response times offered by a municipal fire department. Some residents wish to be served by a municipal police department that may have a better officer to resident ratio, smaller patrolling area and better response times. In rural Georgia, municipalities are often able to provide municipal water service at rates that are more cost efficient for homeowners than paying to pump well water. In addition to enhanced services, many residents wish to take advantage of the efforts that cities have made to create more livable communities. Smart growth initiatives in many cities promote active downtowns and infrastructure improvements like sidewalks and parks allow residents to enjoy a higher quality of life. As a result of these initiatives and heightened service levels, annexation often results in raising the annexed property's value. Finally, many residents enjoy having access to a smaller and more responsive local government. Especially in the metro Atlanta area, being able to rely on a mayor and council that represent The Handbook for Georgia Mayors and Councilmembers 1

3 only a few thousand people allows for decision making that respects and is responsive to the needs of individual neighborhoods. Methods of Annexation There are five methods of annexation. For additional details on annexation, the full text of Georgia s annexation statutes, case summaries, checklists and other materials on annexation, please see GMA s publication Growing Cities: Growing Georgia available on GMA s website at 100% Method The 100% method allows property owners of all the land in an area to seek to have their property annexed into an adjacent city by signing a petition. 2 It is up to the city council to determine whether to annex the property or not. However, counties have the power to prevent the expansion of a city into their county for the first time through the 100 percent method. 3 60% Method This method allows for petitioners representing owners of at least 60% of the property in the area to be annexed and at least 60% of the resident electors in the area to be annexed to sign a petition to have their property annexed into an adjacent city. This method is available to cities with populations over 200 persons. The municipality is required to prepare a plan for servicing an area to be annexed and to hold a public hearing before adopting an ordinance annexing the area covered by the petition. 4 Resolution and Referendum The resolution and referendum method provides for an election to be held in an area to determine if the area should be annexed. This method requires an agreement between the city and the county providing services in the area and a referendum of voters residing in the area to be annexed. 5 Municipalities may annex contiguous areas intended to be developed for urban purposes or areas in between the existing city limits and areas to be developed for urban purposes. The municipality must prepare a plan for servicing the area to be annexed and hold a public hearing prior to the referendum. An area intended to be developed for urban purposes is defined as an area with a total resident population equal to at least two persons for each acre of land and an area subdivided into lots and tracts such that at least 60 percent of the total acreage consists of lots and tracts five acres or less in size and such that at least 60 percent of the total number of lots and tracts are one acre or less in size. 6 Island Annexation Municipalities with a population of 200 or more may unilaterally annex contiguous unincorporated islands. 7 Unincorporated islands are areas completely surrounded by one or more cities. To be eligible for this type of annexation the unincorporated island must have been such an island on January 1, All or any portion of such an unincorporated island may be annexed simply by the passage of an ordinance by the city council. The intent behind this authority is to allow cities to alleviate voting and service delivery issues caused by such areas. The Handbook for Georgia Mayors and Councilmembers 2

4 Local Act of General Assembly In addition to annexation by home rule, the Georgia General Assembly may change a municipality s boundaries and annex property into the municipal limits by enacting local legislation. 8 Where more than fifty percent of an area proposed for annexation by local act is used for residential purposes and the number of residents to be annexed exceeds 3 percent of the city s current population or 500 people, whichever is less, a referendum on annexation must be held in the area to be annexed. Used for residential purposes means that the property is a lot or tract five acres or less in size on which is constructed a habitable dwelling unit. 9 Note that introduction of a local act of the General Assembly must be preceded by notice to the municipality affected and advertisement in the newspaper. 10 Procedural Considerations Once property has been annexed, the city must file an identification of the annexed land with the Department of Community Affairs and the county within 30 days of the last day of the quarter during which the annexation becomes effective. 11 The city must also send to DCA and the county a letter stating the city s intent to add the annexed area to maps provided by the United States Census Bureau during the next regularly scheduled boundary and annexation survey of the municipality. 12 Additionally, the city must send to DCA a list identifying roadways, bridges, and rights-of-way on state routes that are annexed, including total mileage annexed. 13 The addition of this information to the official census map is important for a variety of purposes including redistricting. Relationship with Counties Service Delivery Although annexation primarily concerns residents seeking annexation and the municipality being petitioned, counties do have some potential interests. Some counties have claimed that annexation places a burden on county governments by depriving them of revenue, making land use decisions difficult, or interfering with the provisions of service delivery. While municipal property always remains on county property tax rolls, annexation of businesses and establishments that serve alcohol will result in occupations taxes and alcohol license fees being paid to the city. Counties are able to continue to collect property taxes on property that is annexed, but they are freed from the costs associated with providing services that will be provided by the city. Every county and city must enter into a service delivery strategy agreement in order to address which local government will provide each service, where it will provide each service and how each service will be funded. 20 These agreements should also address double-taxation of municipal residents, duplication of service and any changes in service delivery in response to annexation. Furthermore, cities and counties may enter into intergovernmental agreements and have in place mutual aid agreements that establish respective roles for service delivery. The Handbook for Georgia Mayors and Councilmembers 3

5 Zoning, Land Use and Dispute Resolution Property annexed into a city must be rezoned by the city. 21 If the city and county have a common zoning ordinance with respect to zoning classifications, which is a rare occurrence, the city can adopt a zoning ordinance stating that all annexed property shall be zoned by the municipality for the same use for which it was zoned immediately prior to annexation. 22 Otherwise, the city must complete the requirements for rezoning the property, except for the final vote on rezoning, prior to adopting an annexation ordinance or resolution. 23 When a municipality receives a petition for annexation, it must provide a copy to the county, along with the proposed zoning and land use of such area, by certified mail or overnight delivery. 24 If the zoning or land use of an area to be annexed will be changed immediately after the annexation and such proposed change would impose a material increase in burden upon the county due to the proposed change in land use or zoning, proposed increase in density or infrastructure demands related to the proposed change in land use or zoning, the county governing authority may file an objection to the annexation. 25 The county governing authority must vote in an open session to object to the annexation and provide evidence of any financial impact forming the basis for the objection. 26 In order for an objection to be valid, the proposed change in zoning or land use must: Result in a substantial change in the intensity of allowable use of the property or a change to a significantly different allowable use; or Significantly increases the net cost of infrastructure or significantly diminishes the value or useful life of the capital outlay which is furnished by the county to the area to be annexed; AND Differ substantially from the existing uses suggested for the property by the county's comprehensive land use plan or permitted for the property pursuant to the county's zoning ordinance or its land use ordinances. 27 Code section requires the appointment of an arbitration panel not later than 15 days after the city receives the county s objection. The arbitration panel is comprised of 5 members. This code section sets out requirements for service as an arbitrator and the method of selecting them. The arbitration panel must render a binding decision within 60 days of appointment and must consider certain factors in rendering their decision. 28 The county is required to provide supporting evidence that its objection is consistent with its land use plan and the pattern of existing land uses and zonings in the area of the proposed annexation. If the panel rules on zoning, land use or density conditions, its findings will be recorded in the deed records of the subject property. The arbitration panel will dissolve 10 days after it discloses its findings. The county will pay 75% of the cost of the arbitration, including the costs incurred by the city and property owner. The arbitration panel will apportion the remaining 25% between the affected parties. 29 The decision of the arbitration panel may be appealed to superior court. 30 After final resolution of any objection, whether by agreement of the parties, act of the panel, or any appeal from the panel's decision, the terms of the arbitration panel s decision will remain valid for a period of one year. The Handbook for Georgia Mayors and Councilmembers 4

6 The annexation may proceed at any time during the one year time period without any further right of objection of by the county. Following the annexation and zoning in accord with the panel s decision, the municipal government cannot change the zoning, land use, or density of the annexed property for one year. 31 Likewise, the county is prohibited from changing the zoning, land use, or density of the property proposed for annexation for one year if the proposed annexation is abandoned. 32 The Handbook for Georgia Mayors and Councilmembers 5

7 1 O.C.G.A (1). 2 O.C.G.A et seq. 3 O.C.G.A (b). 4 O.C.G.A et seq.; City of Riverdale v. Clayton County, 263 Ga.App. 672, 588 S.E.2d 845 (2003) 5 O.C.G.A Ibid. 7 O.C.G.A et seq. 8 O.C.G.A Ibid. 10 O.C.G.A O.C.G.A ; O.C.G.A O.C.G.A (a)(3); O.C.G.A (g). 13 O.C.G.A (a)(4) U.S.C. 1973c. 15 Perkins v. Matthews, 400 U.S. 379 (1971). 16 City of Rome v. United States, 336 U.S. 156 (1980); City of Pleasant Grove v. United States, 479 U.S. 462 (1987). 17 See City of Pleasant Grove, 479 U.S. at 468 n C.F.R. Part C.F.R O.C.G.A Ga. Const. Art. IX, Sec. II, Par. IV. 22 O.C.G.A (e). 23 O.C.G.A (d). 24 O.C.G.A O.C.G.A (a). 26 O.C.G.A (c). 27 O.C.G.A (d). 28 O.C.G.A Ibid. 30 O.C.G.A O.C.G.A O.C.G.A The Handbook for Georgia Mayors and Councilmembers 6