GENERAL ASSEMBLY OF NORTH CAROLINA
SESSION 1997
SESSION LAW 1998-150
The General Assembly of North Carolina enacts:
Section 1. G.S. 105-277.4(b) reads as rewritten:
"(b) Appraisal at Present-use Value. - Upon receipt of a properly executed application, the assessor shall appraise the property at its present-use value as established in the schedule prepared pursuant to G.S. 105-317. In appraising the property at its present-use value, the assessor shall appraise the improvements located on qualifying land according to the schedules and standards used in appraising other similar improvements in the county. If all or any part of a qualifying tract of land is located within the limits of an incorporated city or town, or is property annexed subject to G.S. 160A-37(f1) or G.S. 160A-49(f1), the assessor shall furnish a copy of the property record showing both the present-use appraisal and the valuation upon which the property would have been taxed in the absence of this classification to the collector of the city or town. He shall also notify the tax collector of any changes in the appraisals or in the eligibility of the property for the benefit of this classification. Upon a request for a certification pursuant to G.S. 160A-37(f1) or G.S.160A-49(f1), or any change in the certification, the assessor for the county where the land subject to the annexation is located shall, within 30 days, determine if the land meets the requirements of G.S. 160A-37(f1)(2) or G.S. 160A-49(f1)(2) and report the results of its findings to the city."
Section 2. G.S. 120-166 reads as rewritten:
"§ 120-166. Additional criteria; nearness to another municipality.
(a) The Commission may not make a positive recommendation if the proposed municipality is located within one mile of a municipality of 5,000 to 9,999, within three miles of a municipality of 10,000 to 24,999, within four miles of a municipality of 25,000 to 49,999, or within five miles of a municipality of 50,000 or over, according to the most recent decennial federal census, or according to the most recent annual estimate of the Office of State Budget and Management if the municipality was incorporated since the return of that census.
(b) Subsection (a) of this section does not apply in the case of proximity to a specific municipality if:
(1) The proposed municipality is entirely on an island that the nearby city is not on;
(2) The proposed municipality is separated by a major river or other natural barrier from the nearby city, such that provision of municipal services by the nearby city to the proposed municipality is infeasible or the cost is prohibitive, and the Commission shall adopt policies to implement this subdivision;
(3) The nearby
municipality municipalities within the distances described in subsection
(a) of this section by resolution expresses its express their approval
of the incorporation; or
(4) An area of at least fifty percent (50%) of the proposed municipality has petitioned for annexation to the nearby city under G.S. 160A-31 within the previous 12 months before the incorporation petition is submitted to the Commission but the annexation petition was not approved."
Section 3. Article 20 of Chapter 120 is amended by adding a new section to read:
"§ 120-169.1. Additional criteria; level of development, services.
(a) Level of Development. - The Commission may not make a positive recommendation unless the entire area proposed for incorporation meets the applicable criteria for development under G.S. 160A-36(c) or G.S. 160A-48(c).
(b) Services. - The Commission may not make a positive recommendation unless the area to be incorporated submits a plan for providing a reasonable level of municipal services. To meet the requirements of this subsection, the persons submitting the plan for incorporation must propose to provide at least two of the following services:
(1) Police protection.
(2) Fire protection.
(3) Garbage and refuse collection or disposal.
(4) Water distribution.
(5) Sewer collection or disposal.
(6) Street maintenance, construction, or right-of-way acquisition.
(7) Street lighting.
(8) Adoption of citywide planning and zoning."
Section 4. G.S. 160A-35 reads as rewritten:
"§ 160A-35. Prerequisites to annexation; ability to serve; report and plans.
A municipality exercising authority under this Part shall make plans for the extension of services to the area proposed to be annexed and shall, prior to the public hearing provided for in G.S. 160A-37, prepare a report setting forth such plans to provide services to such area. The report shall include:
(1) A map or maps of the municipality and adjacent territory to show the following information:
a. The present and proposed boundaries of the municipality.
b. The proposed extensions of water mains and sewer outfalls to serve the annexed area, if such utilities are operated by the municipality. The water and sewer map must bear the seal of a registered professional engineer or a licensed surveyor.
(2) A statement showing that the area to be annexed meets the requirements of G.S. 160A-36.
(3) A statement setting forth the plans of the municipality for extending to the area to be annexed each major municipal service performed within the municipality at the time of annexation. Specifically, such plans shall:
a. Provide for extending police protection, fire protection, solid waste collection and street maintenance services to the area to be annexed on the date of annexation on substantially the same basis and in the same manner as such services are provided within the rest of the municipality prior to annexation. A contract with a rural fire department to provide fire protection shall be an acceptable method of providing fire protection. If a water distribution system is not available in the area to be annexed, the plans must call for reasonably effective fire protection services until such time as waterlines are made available in such area under existing municipal policies for the extension of waterlines. A contract with a private firm to provide solid waste collection services shall be an acceptable method of providing solid waste collection services.
b. Provide for extension of water mains and sewer lines into the area to be annexed so that property owners in the area to be annexed will be able to secure public water and sewer services according to the policies in effect in such municipality for extending water and sewer lines to individual lots or subdivisions. If the municipality must, at its own expense, extend water and/or sewer mains into the area to be annexed before property owners in the area can, according to municipal policies, make such connection to such lines, then the plans must call for contracts to be let and construction to begin on such lines within one year following the effective date of annexation. In areas where the installation of sewer is not economically feasible due to the unique topography of the area, the municipality may agree to provide septic system maintenance and repair service until such time as sewer service is provided to properties similarly situated.
c. Set forth the method under which the municipality plans to finance extension of services into the area to be annexed.
(4) A statement of the impact of the annexation on any rural fire department providing service in the area to be annexed and a statement of the impact of the annexation on fire protection and fire insurance rates in the area to be annexed, if the area where service is provided is in an insurance district designated under G.S. 153A-233, a rural fire protection district under Article 3A of Chapter 69 of the General Statutes, or a fire service district under Article 16 of Chapter 153A of the General Statutes. The rural fire department shall make available to the city not later than 30 days following a written request from the city all information in its possession or control, including but not limited to operational, financial and budgetary information, necessary for preparation of a statement of impact. The rural fire department forfeits its rights under G.S. 160A-37.1 and G.S. 160A-37.2 if it fails to make a good faith response within 45 days following receipt of the written request for information from the city, provided that the city's written request so states by specific reference to this section.
(5) A statement showing how the proposed annexation will affect the city's finances and services, including city revenue change estimates. This statement shall be delivered to the clerk of the board of county commissioners at least 30 days before the date of the public informational meeting on any annexation under this Part."
Section 5. G.S. 160A-35.1 reads as rewritten:
"§ 160A-35.1. Limitation on change in financial participation prior to annexation.
No For purposes of the extension of water and sewer
services required under G.S. 160A-35, no ordinance or policy substantially
diminishing the financial participation of a municipality in the construction
of water or sewer facilities required under this Article may apply to an area
being annexed unless the ordinance or policy became effective at least 180 days
prior to the date of adoption by the municipality of the resolution giving
notice of intent to consider annexing the area under G.S. 160A-37(a)."
Section 6. G.S. 160A-36 reads as rewritten:
"§ 160A-36. Character of area to be annexed.
(a) A municipal governing board may extend the municipal corporate limits to include any area which meets the general standards of subsection (b), and which meets the requirements of subsection (c).
(b) The total area to be annexed must meet the following standards:
(1) It must be adjacent or contiguous to the municipality's boundaries at the time the annexation proceeding is begun, except if the entire territory of a county water and sewer district created under G.S. 162A-86(b1) is being annexed, the annexation shall also include any noncontiguous pieces of the district as long as the part of the district with the greatest land area is adjacent or contiguous to the municipality's boundaries at the time the annexation proceeding is begun.
(2) At least one eighth of the aggregate external boundaries of the area must coincide with the municipal boundary.
(3) No part of the area shall be included within the boundary of another incorporated municipality.
(c) The area to be
annexed must be developed for urban purposes. purposes at the time of
approval of the report provided for in G.S. 160A-35. For purposes of this
section, a lot or tract shall not be considered in use for a commercial,
industrial, institutional, or governmental purpose if the lot or tract is used
only temporarily, occasionally, or on an incidental or insubstantial basis in
relation to the size and character of the lot or tract. For purposes of this
section, acreage in use for commercial, industrial, institutional, or
governmental purposes shall include acreage actually occupied by buildings or
other man-made structures together with all areas that are reasonably necessary
and appurtenant to such facilities for purposes of parking, storage, ingress
and egress, utilities, buffering, and other ancillary services and facilities.
Area of streets and street rights-of-way shall not be used to determine total
acreage under this section. An area developed for urban purposes is defined
as any as:
(1) Any area
which is so developed that at least sixty percent (60%) of the total number of
lots and tracts in the area at the time of annexation are used for residential,
commercial, industrial, institutional or governmental purposes, and is
subdivided into lots and tracts such that at least sixty percent (60%) of the
total acreage, not counting the acreage used at the time of annexation for commercial,
industrial, governmental or institutional purposes, consists of lots and tracts
five three acres or less in size.
(2) An area so developed that, at the time of the approval of the annexation report, all tracts in the area to be annexed are used for commercial, industrial, governmental, or institutional purposes.
(3) An area
developed for urban purposes is also the The entire area of any
county water and sewer district created under G.S. 162A-86(b1), but this sentence
subsection only applies to annexation by a municipality if that:
(1)a. Municipality has provided in a contract with that district that the area is developed for urban purposes; and
(2)b. Contract provides for the municipality to operate the sewer system of that county water and sewer district;
provided that the special
categorization provided by this sentence subsection only applies
if the municipality is annexing in one proceeding the entire territory of the
district not already within the corporate limits of a municipality.
(d) In fixing new
municipal boundaries, a municipal governing board shall, wherever practical,
use natural topographic features such as ridge lines and streams and creeks as
boundaries, and may use streets as boundaries. shall use recorded
property lines and streets as boundaries. Some or all of the boundaries of
a county water and sewer district may also be used when the entire district not
already within the corporate limits of a municipality is being annexed.
(e) The area of an abolished water and sewer district shall be considered to be a water and sewer district for the purpose of this section even after its abolition under G.S. 162A-87.2(b)."
Section 7. G.S. 160A-37 reads as rewritten:
"§ 160A-37. Procedure for annexation.
(a) Notice of Intent. -
Any municipal governing board desiring to annex territory under the provisions
of this Part shall first pass a resolution stating the intent of the
municipality to consider annexation. Such resolution shall describe the
boundaries of the area under consideration consideration, fix a date
for the public informational meeting, and fix a date for a public hearing
on the question of annexation, the annexation. The date for the
public informational meeting shall be not less than 45 days and not more than
55 days following passage of the resolution. The date for such the
public hearing to be not less than 45 60 days and not more
than 90 days following passage of the resolution.
(b) Notice of Public Hearing. - The notice of public hearing shall:
(1) Fix the date, hour and place of the public informational meeting and the date, hour, and place of the public hearing.
(2) Describe clearly the boundaries of the area under consideration, and include a legible map of the area.
(3) State that the report
required in G.S. 160A-35 will be available at the office of the municipal clerk
at least 30 days prior to the date of the public hearing. informational
meeting.
(4) Include an explanation of an owner's rights pursuant to subsection (f1) and (f2) of this section.
Such notice shall be given by publication once a week for at
least two successive weeks prior to the date of the hearing informational
meeting in a newspaper having general circulation in the municipality and,
in addition thereto, if the area to be annexed lies in a county containing less
than fifty percent (50%) of the land area of the municipality, in a newspaper
having general circulation in the area of proposed annexation. The period from
the date of the first publication to the date of the last publication, both
dates inclusive, shall be not less than eight days including Sundays, and the
date of the last publication shall be not more than seven days preceding the
date of public hearing. informational meeting. If there be
no such newspaper, the municipality shall post the notice in at least five
public places within the municipality and at least five public places in the
area to be annexed for 30 days prior to the date of public hearing. informational
meeting. In addition, notice shall be mailed at least four weeks
prior to date of the hearing informational meeting, by first
class mail, postage prepaid to the owners as shown by the tax records of the
county of all freehold interests in real property located within the area to be
annexed. The person or persons mailing such notices shall certify to the
governing board that fact, and such certificate shall become a part of the
record of the annexation proceeding and shall be deemed conclusive in the
absence of fraud. If the notice is returned to the city by the postal service
by the tenth day before the hearing, informational meeting, a
copy of the notice shall be sent by certified mail, return receipt requested,
at least seven days before the hearing. informational meeting. Failure
to comply with the mailing requirement of this subsection shall not invalidate
the annexation unless it is shown that the requirements were not substantially
complied with.
If the governing board by resolution finds that the tax
records are not adequate to identify the owners of some or all of the parcels
of real property within the area it may in lieu of the mail procedure as to
those parcels where the owners could not be so identified, post the notice at
least 30 days prior to the date of public hearing informational
meeting on all buildings on such parcels, and in at least five other places
within the area to be annexed. In any case where notices are placed on
property, the person placing the notice shall certify that fact to the
governing board.
(c) Action Prior to Hearing.
Informational Meeting. - At least 30 days before the date of the
public hearing, informational meeting, the governing board shall
approve the report provided for in G.S. 160A-35, and shall make it available to
the public at the office of the municipal clerk. In addition, the municipality
may prepare a summary of the full report for public distribution. In addition,
the city shall post in the office of the city clerk at least 30 days before the
public hearing informational meeting a legible map of the area to
be annexed and a list of the persons holding freehold interests in property in
the area to be annexed that it has identified.
(c1) Public Informational Meeting. - At the public informational meeting a representative of the municipality shall first make an explanation of the report required in G.S. 160A-35. Following such explanation, all persons resident or owning property in the territory described in the notice of public hearing, and all residents of the municipality, shall be given the opportunity to ask questions and receive answers regarding the proposed annexation.
(d) Public Hearing. - At the public hearing a representative of the municipality shall first make an explanation of the report required in G.S. 160A-35. Following such explanation, all persons resident or owning property in the territory described in the notice of public hearing, and all residents of the municipality, shall be given an opportunity to be heard.
(e) Passage of the Annexation Ordinance. - The municipal governing board shall take into consideration facts presented at the public hearing and shall have authority to amend the report required by G.S. 160A-35 to make changes in the plans for serving the area proposed to be annexed so long as such changes meet the requirements of G.S. 160A-35. At any regular or special meeting held no sooner than the tenth day following the public hearing and not later than 90 days following such public hearing, the governing board shall have authority to adopt an ordinance extending the corporate limits of the municipality to include all, or such part, of the area described in the notice of public hearing which meets the requirements of G.S. 160A-36 and which the governing board has concluded should be annexed. The ordinance shall:
(1) Contain specific findings showing that the area to be annexed meets the requirements of G.S. 160A-36. The external boundaries of the area to be annexed shall be described by metes and bounds. In showing the application of G.S. 160A-36(c) and (d) to the area, the governing board may refer to boundaries set forth on a map of the area and incorporate same by reference as a part of the ordinance.
(2) A statement of the intent of the municipality to provide services to the area being annexed as set forth in the report required by G.S. 160A-35.
(3) A specific finding that on the effective date of annexation the municipality will have funds appropriated in sufficient amount to finance construction of any water and sewer lines found necessary in the report required by G.S. 160A-35 to extend the basic water and/or sewer system of the municipality into the area to be annexed, or that on the effective date of annexation the municipality will have authority to issue bonds in an amount sufficient to finance such construction. If authority to issue such bonds must be secured from the electorate of the municipality prior to the effective date of annexation, then the effective date of annexation shall be no earlier than the day following the statement of the successful result of the bond election.
(4) Fix the effective date for annexation. The effective date of annexation may be fixed for any date not less than 40 days nor more than 400 days from the date of passage of the ordinance.
(f) Effect of
Annexation Ordinance. - Except as provided in subsection (f1) of this
section, from From and after the effective date of the annexation
ordinance, the territory and its citizens and property shall be subject to all
debts, laws, ordinances and regulations in force in such municipality and shall
be entitled to the same privileges and benefits as other parts of such
municipality. Real and personal property in the newly annexed territory on the
January 1 immediately preceding the beginning of the fiscal year in which the
annexation becomes effective is subject to municipal taxes as provided in G.S.
160A-58.10. If the effective date of annexation falls between June 1 and June
30, and the effective date of the privilege license tax ordinance of the
annexing municipality is June 1, then businesses in the area to be annexed
shall be liable for taxes imposed in such ordinance from and after the
effective date of annexation.
(f1) Property Subject to Present-Use Value Appraisal. - If an area described in an annexation ordinance includes agricultural land, horticultural land, or forestland that on the effective date of annexation is:
(1) Land that is being taxed at present-use value pursuant to G.S. 105-277.4; or
(2) Land that:
a. Was on the date of the resolution of intent for annexation being used for actual production and is eligible for present-use value taxation under G.S. 105-277.4, but the land has not been in use for actual production for the required time under G.S. 105-277.3; and
b. The assessor for the county where the land subject to annexation is located has certified to the city that the land meets the requirements of this subdivision
the annexation becomes effective as to that property pursuant to subsection (f2) of this section.
(f2) Effective Date of Annexation for Certain Property. - Annexation of property subject to annexation under subsection (f1) of this section shall become effective:
(1) Upon the effective date of the annexation ordinance, the property is considered part of the city only (i) for the purpose of establishing city boundaries for additional annexations pursuant to this Article and (ii) for the exercise of city authority pursuant to Article 19 of this Chapter.
(2) For all other purposes, the annexation becomes effective as to each tract of such property or part thereof on the last day of the month in which that tract or part thereof becomes ineligible for classification pursuant to G.S. 105-227.4 or no longer meets the requirements of subdivision (f1)(2) of this section. Until annexation of a tract or a part of a tract becomes effective pursuant to this subdivision, the tract or part of a tract is not subject to taxation by the city under Article 12 of Chapter 105 of the General Statutes nor is the tract or part of a tract entitled to services provided by the city.
(g) Simultaneous Annexation Proceedings. - If a municipality is considering the annexation of two or more areas which are all adjacent to the municipal boundary but are not adjacent to one another, it may undertake simultaneous proceedings under authority of this Part for the annexation of such areas.
(h) Remedies for Failure to Provide Services. - If, not earlier than one year from the effective date of annexation, and not later than 15 months from the effective date of annexation, any person owning property in the annexed territory shall believe that the municipality has not followed through on its service plans adopted under the provisions of G.S. 160A-35(3) and 160A-37(e), such person may apply for a writ of mandamus under the provisions of Article 40, Chapter 1 of the General Statutes. Relief may be granted by the judge of superior court
(1) If the municipality has not provided the services set forth in its plan submitted under the provisions of G.S. 160A-35(3)a on substantially the same basis and in the same manner as such services were provided within the rest of the municipality prior to the effective date of annexation, and
(2) If at the time the writ is sought such services set forth in the plan submitted under the provisions of G.S. 160A-35(3)a are still being provided on substantially the same basis and in the same manner as on the date of annexation of the municipality.
Relief may also be granted by the judge of superior court
(1) If the plans submitted under the provisions of G.S. 160A-35(3)c require the construction of major trunk water mains and sewer outfall lines and
(2) If contracts for such construction have not yet been let.
If a writ is issued, costs in the action, including a reasonable attorney's fee for such aggrieved person, shall be charged to the municipality.
(i) No resolution
of intent may be adopted under subsection (a) of this section unless the city
council (or a planning agency created or designated under either G.S. 160A-361
or the charter) has, by resolution adopted at least one year prior to adoption
of the resolution of intent, identified the area as being under consideration
for annexation; annexation and included a statement in the resolution
notifying persons subject to the annexation of their rights under subsections
(f1) and (f2) of this section; provided, adoption of such resolution of
consideration shall not confer prior jurisdiction over the area as to any other
city. The area described under the resolution of intent may comprise a smaller
area than that identified by the resolution of consideration. The resolution of
consideration may have a metes and bounds description or a map, shall remain
effective for two years after adoption, and shall be filed with the city
clerk. A new resolution of consideration adopted before expiration of the
two-year period for a previously adopted resolution covering the same area
shall relate back to the date of the previous resolution.
(j) Subsection (i) of this section shall not apply to the annexation of any area if the resolution of intent describing the area and the ordinance annexing the area both provide that the effective date of the annexation shall be at least one year from the date of passage of the annexation ordinance.
(k) If a city fails to deliver police protection, fire protection, solid waste or street maintenance services as provided for in G.S. 160A-35(3)a. within 60 days after the effective date of the annexation, the owner of the property may petition the Local Government Commission for abatement of taxes to be paid to the city for taxes that have been levied as of the end of the 60-day period, if the petition is filed not more than 90 days after the expiration of the 60-day period. If the Local Government Commission finds that services were not extended by the end of the 60-day period, it shall enter an order directing the city not to levy any further ad valorem taxes on the property until the fiscal year commencing after extension of the municipal services."
Section 8. G.S. 160A-37.2 reads as rewritten:
"§ 160A-37.2. Assumption of debt.
(a) If the city has
annexed any area which is served by a rural fire department and which is in an
insurance district defined under G.S. 153A-233, a rural fire protection
district under Article 3A of Chapter 69 of the General Statutes or a fire
service district under Article 17 of Chapter 153A of the General Statutes, then
upon the effective date of annexation if the city has not contracted with the
rural fire department for fire protection, or when the rural fire department
ceases to provide fire protection under contract, then the city shall pay
annually a proportionate share of any payments due on any debt (including
principal and interest) relating to facilities or equipment of the rural fire
department, if the debt was existing at the time of adoption of the resolution
of intent, with the payments in the same proportion that the assessed valuation
of the area of the district annexed bears to the assessed valuation of the
entire district on the date the annexation ordinance becomes effective. effective
or another date for valuation mutually agreed upon by the city and the fire
department.
(b) The city and rural fire department shall jointly present a payment schedule to the Local Government Commission for approval and no payment may be made until such schedule is approved."
Section 9. G.S. 160A-37.3 is amended by adding a new subsection to read:
"(h) A firm which has
given notice under subsection (a) of this section that it desires to contract,
and any firm that the city believes is eligible to give such notice, shall make
available to the city not later than five 10 business days
following a written request of the city city, sent by certified mail
return receipt requested, all information in its possession or control,
including but not limited to operational, financial and budgetary information,
necessary for the city to determine if the firm qualifies for the benefits of
this section and to determine the nature and scope of the potential contract
and/or economic loss. The firm forfeits its rights under this section if it
fails to make a good faith response within 10 business days following receipt
of the written request for information from the city, provided that the city's
written request states that statutory rights will be forfeited in the absence
of a timely response and includes a specific reference to this section."
Section 10. G.S. 160A-38 reads as rewritten:
"§ 160A-38. Appeal.
(a) Within 30 days 60
days following the passage of an annexation ordinance under authority of
this Part, any person owning property in the annexed territory who shall
believe that he will suffer material injury by reason of the failure of the
municipal governing board to comply with the procedure set forth in this Part
or to meet the requirements set forth in G.S. 160A-36 as they apply to his
property may file a petition in the superior court of the county in which the
municipality is located seeking review of the action of the governing board.
(b) Such petition shall
explicitly state what exceptions are taken to the action of the governing board
and what relief the petitioner seeks. Within five days 10 days after
the petition is filed with the court, the person seeking review shall serve
copies of the petition by registered mail, return receipt requested, upon the
municipality.
(c) Within 15 days after receipt of the copy of the petition for review, or within such additional time as the court may allow, the municipality shall transmit to the reviewing court
(1) A transcript of the portions of the municipal journal or minute book in which the procedure for annexation has been set forth and
(2) A copy of the report setting forth the plans for extending services to the annexed area as required in G.S. 160A-35.
(d) If two or more petitions for review are submitted to the court, the court may consolidate all such petitions for review at a single hearing, and the municipality shall be required to submit only one set of minutes and one report as required in subsection (c).
(e) At any time before or during the review proceeding, any petitioner or petitioners may apply to the reviewing court for an order staying the operation of the annexation ordinance pending the outcome of the review. The court may grant or deny the stay in its discretion upon such terms as it deems proper, and it may permit annexation of any part of the area described in the ordinance concerning which no question for review has been raised.
(f) The court shall fix the date for review of annexation proceedings under this Chapter, which review date shall preferably be within 30 days following the last day for receiving petitions to the end that review shall be expeditious and without unnecessary delays. The review shall be conducted by the court without a jury. The court may hear oral arguments and receive written briefs, and may take evidence intended to show either
(1) That the statutory procedure was not followed or
(2) That the provisions of G.S. 160A-35 were not met, or
(3) That the provisions of G.S. 160A-36 have not been met.
(g) The court may affirm the action of the governing board without change, or it may
(1) Remand the ordinance to the municipal governing board for further proceedings if procedural irregularities are found to have materially prejudiced the substantive rights of any of the petitioners.
(2) Remand the ordinance to the municipal governing board for amendment of the boundaries to conform to the provisions of G.S. 160A-36 if it finds that the provisions of G.S. 160A-36 have not been met; provided, that the court cannot remand the ordinance to the municipal governing board with directions to add area to the municipality which was not included in the notice of public hearing and not provided for in plans for service.
(3) Remand the report to the municipal governing board for amendment of the plans for providing services to the end that the provisions of G.S. 160A-35 are satisfied.
(4) Declare the ordinance null and void, if the court finds that the ordinance cannot be corrected by remand as provided in subdivisions (1), (2), or (3) of this subsection.
If any municipality shall fail to take action in accordance with the court's instructions upon remand within three months from receipt of such instructions, the annexation proceeding shall be deemed null and void.
(h) Any party to the review proceedings, including the municipality, may appeal to the Court of Appeals from the final judgment of the superior court under rules of procedure applicable in other civil cases. The superior court may, with the agreement of the municipality, permit annexation to be effective with respect to any part of the area concerning which no appeal is being made and which can be incorporated into the city without regard to any part of the area concerning which an appeal is being made.
(i) If part or all of the area annexed under the terms of an annexation ordinance is the subject of an appeal to the superior court, Court of Appeals or Supreme Court on the effective date of the ordinance, then the ordinance shall be deemed amended to make the effective date with respect to such area the last day of the next full calendar month following the date of the final judgment of the superior court, Court of Appeals or Supreme Court, whichever is appropriate, or the date the municipal governing board completes action to make the ordinance conform to the court's instructions in the event of remand. For the purposes of this subsection, a denial of a petition for a rehearing or for discretionary review shall be treated as a final judgement.
(j) The provisions of subsection (i) of this section shall apply to any judicial review authorized in whole or in part by G.S. 160A-37.1(i) or G.S. 160A-37.3(g).
(k) In any proceeding related to an annexation ordinance appeal under this section, a city shall not state a claim for lost property tax revenue caused by the appeal. Nothing in this Article shall be construed to mean that as a result of an appeal a municipality may assert a claim for property tax revenue lost during the pendency of the appeal.
(l) Any settlement agreed to by all parties in an appeal under this section may be presented to the superior court in the county in which the municipality is located. If the superior court, in its discretion, approves the settlement, it shall be binding on all parties without the need for approval by the General Assembly."
Section 11. G.S. 160A-42 reads as rewritten:
"§ 160A-42. Land estimates.
In determining degree of land subdivision for purposes of
meeting the requirements of G.S. 160A-36, the municipality shall use methods
calculated to provide reasonably accurate results. In determining whether the
standards set forth in G.S. 160A-36 have been met on appeal to the superior
court under G.S. 160A-38, the reviewing court shall accept the estimates of the
municipality: municipality as provided in this section unless the
actual total area or degree of subdivision falls below the standards in G.S.
160A-36:
(1) As to total area if the estimate is based on an actual survey, or on county tax maps or records, or on aerial photographs, or on some other reasonably reliable map used for official purposes by a governmental agency unless the petitioners on appeal demonstrate that such estimates are in error in the amount of five percent (5%) or more.
(2) As to degree of land subdivision, if the estimates are based on an actual survey, or on county tax maps or records, or on aerial photographs, or on some other reasonably reliable source, unless the petitioners on appeal show that such estimates are in error in the amount of five percent (5%) or more."
Section 12. G.S. 160A-47 reads as rewritten:
"§ 160A-47. Prerequisites to annexation; ability to serve; report and plans.
A municipality exercising authority under this Part shall make plans for the extension of services to the area proposed to be annexed and shall, prior to the public hearing provided for in G.S. 160A-49, prepare a report setting forth such plans to provide services to such area. The report shall include:
(1) A map or maps of the municipality and adjacent territory to show the following information:
a. The present and proposed boundaries of the municipality.
b. The present major trunk water mains and sewer interceptors and outfalls, and the proposed extensions of such mains and outfalls as required in subdivision (3) of this section. The water and sewer map must bear the seal of a registered professional engineer.
c. The general land use pattern in the area to be annexed.
(2) A statement showing that the area to be annexed meets the requirements of G.S. 160A-48.
(3) A statement setting forth the plans of the municipality for extending to the area to be annexed each major municipal service performed within the municipality at the time of annexation. Specifically, such plans shall:
a. Provide for extending police protection, fire protection, solid waste collection and street maintenance services to the area to be annexed on the date of annexation on substantially the same basis and in the same manner as such services are provided within the rest of the municipality prior to annexation. A contract with a rural fire department to provide fire protection shall be an acceptable method of providing fire protection. If a water distribution system is not available in the area to be annexed, the plans must call for reasonably effective fire protection services until such time as waterlines are made available in such area under existing municipal policies for the extension of waterlines. A contract with a private firm to provide solid waste collection services shall be an acceptable method of providing solid waste collection services.
b. Provide for
extension of major trunk water mains and sewer outfall lines into the area to
be annexed so that when such lines are constructed, property owners in the area
to be annexed will be able to secure public water and sewer service, according
to the policies in effect in such municipality for extending water and sewer
lines to individual lots or subdivisions. If requested by the owner of an
occupied dwelling unit or an operating commercial or industrial property in
writing on a form provided by the municipality, which form acknowledges that
such extension or extensions will be made according to the current financial
policies of the municipality for making such extensions, and if such form is
received by the city clerk not less than 30 days before adoption of the
annexation ordinance, no later than five days after the public hearing, provide
for extension of water and sewer lines to the property or to a point on a
public street or road right-of-way adjacent to the property according to the
financial policies in effect in such municipality for extending water and sewer
lines. If any such requests are timely made, the municipality shall at
the time of adoption of the annexation ordinance amend its report and plan for
services to reflect and accommodate such requests. requests, if an
amendment is necessary. In areas where the municipality is required to extend
sewer service according to its policies, but the installation of sewer is not
economically feasible due to the unique topography of the area, the
municipality shall provide septic system maintenance and repair service until
such time as sewer service is provided to properties similarly situated.
c. If extension of major trunk water mains, sewer outfall lines, sewer lines and water lines is necessary, set forth a proposed timetable for construction of such mains, outfalls and lines as soon as possible following the effective date of annexation. In any event, the plans shall call for construction to be completed within two years of the effective date of annexation.
d. Set forth the method under which the municipality plans to finance extension of services into the area to be annexed.
(4) A statement of the impact of the annexation on any rural fire department providing service in the area to be annexed and a statement of the impact of the annexation on fire protection and fire insurance rates in the area to be annexed, if the area where service is provided is in an insurance district designated under G.S. 153A-233, a rural fire protection district under Article 3A of Chapter 69 of the General Statutes, or a fire service district under Article 16 of Chapter 153A of the General Statutes. The rural fire department shall make available to the city not later than 30 days following a written request from the city all information in its possession or control, including but not limited to operational, financial and budgetary information, necessary for preparation of a statement of impact. The rural fire department forfeits its rights under G.S. 160A-49.1 and G.S. 160A-49.2 if it fails to make a good faith response within 45 days following receipt of the written request for information from the city, provided that the city's written request so states by specific reference to this section.
(5) A statement showing how the proposed annexation will affect the city's finances and services, including city revenue change estimates. This statement shall be delivered to the clerk of the board of county commissioners at least 30 days before the date of the public informational meeting on any annexation under this Part."
Section 13. G.S. 160A-47.1 reads as rewritten:
"§ 160A-47.1. Limitation on change in financial participation prior to annexation.
No For purposes of the extension of water and sewer
services required under G.S. 160A-47, no ordinance or policy substantially
diminishing the financial participation of a municipality in the construction
of water or sewer facilities required under this Article may apply to an area
being annexed unless the ordinance or policy became effective at least 180 days
prior to the date of adoption by the municipality of the resolution giving
notice of intent to consider annexing the area under G.S. 160A-49(a)."
Section 14. G.S. 160A-48 reads as rewritten:
"§ 160A-48. Character of area to be annexed.
(a) A municipal governing board may extend the municipal corporate limits to include any area
(1) Which meets the general standards of subsection (b), and
(2) Every part of which meets the requirements of either subsection (c) or subsection (d).
(b) The total area to be annexed must meet the following standards:
(1) It must be adjacent or contiguous to the municipality's boundaries at the time the annexation proceeding is begun, except if the entire territory of a county water and sewer district created under G.S. 162A-86(b1) is being annexed, the annexation shall also include any noncontiguous pieces of the district as long as the part of the district with the greatest land area is adjacent or contiguous to the municipality's boundaries at the time the annexation proceeding is begun.
(2) At least one eighth of the aggregate external boundaries of the area must coincide with the municipal boundary.
(3) No part of the area shall be included within the boundary of another incorporated municipality.
(c) Part or all of the
area to be annexed must be developed for urban purposes. purposes at
the time of approval of the report provided for in G.S. 160A-47. Area of
streets and street rights-of-way shall not be used to determine total
acreage under this section. An area developed for urban purposes is
defined as any area which meets any one of the following standards:
(1) Has a total resident
population equal to at least two two and three-tenths persons for
each acre of land included within its boundaries; or
(2) Has a total resident
population equal to at least one person for each acre of land included within
its boundaries, and is subdivided into lots and tracts such that at least sixty
percent (60%) of the total acreage consists of lots and tracts five three
acres or less in size and such that at least sixty-five percent (65%) of
the total number of lots and tracts are one acre or less in size; or
(3) Is so developed that
at least sixty percent (60%) of the total number of lots and tracts in the area
at the time of annexation are used for residential, commercial, industrial,
institutional or governmental purposes, and is subdivided into lots and tracts
such that at least sixty percent (60%) of the total acreage, not counting the
acreage used at the time of annexation for commercial, industrial, governmental
or institutional purposes, consists of lots and tracts five three acres
or less in size; or size. For purposes of this section, a lot
or tract shall not be considered in use for a commercial, industrial,
institutional, or governmental purpose if the lot or tract is used only
temporarily, occasionally, or on an incidental or insubstantial basis in
relation to the size and character of the lot or tract. For purposes of
this section, acreage in use for commercial, industrial, institutional, or
governmental purposes shall include acreage actually occupied by buildings or
other man-made structures together with all areas that are reasonably necessary
and appurtenant to such facilities for purposes of parking, storage, ingress
and egress, utilities, buffering, and other ancillary services and facilities;
or
(4) Is the entire area of any county water and sewer district created under G.S. 162A-86(b1), but this subdivision only applies to annexation by a municipality if that:
a. Municipality has provided in a contract with that district that the area is developed for urban purposes; and
b. Contract provides for the municipality to operate the sewer system of that county water and sewer district;
provided that the special categorization provided by this subdivision only
applies if the municipality is annexing in one proceeding the entire territory
of the district not already within the corporate limits of a municipality. municipality;
or
(5) Is so developed that, at the time of the approval of the annexation report, all tracts in the area to be annexed are used for commercial, industrial, governmental, or institutional purposes.
(d) In addition to areas developed for urban purposes, a governing board may include in the area to be annexed any area which does not meet the requirements of subsection (c) if such area either:
(1) Lies between the municipal boundary and an area developed for urban purposes so that the area developed for urban purposes is either not adjacent to the municipal boundary or cannot be served by the municipality without extending services and/or water and/or sewer lines through such sparsely developed area; or
(2) Is adjacent, on at least sixty percent (60%) of its external boundary, to any combination of the municipal boundary and the boundary of an area or areas developed for urban purposes as defined in subsection (c).
The purpose of this subsection is to permit municipal governing boards to extend corporate limits to include all nearby areas developed for urban purposes and where necessary to include areas which at the time of annexation are not yet developed for urban purposes but which constitute necessary land connections between the municipality and areas developed for urban purposes or between two or more areas developed for urban purposes. For purposes of this subsection, 'necessary land connection' means an area that does not exceed twenty-five percent (25%) of the total area to be annexed.
(e) In fixing new
municipal boundaries, a municipal governing board shall, wherever practical,
use natural topographic features such as ridge lines and streams and creeks as
boundaries, and may use streets as boundaries. shall use recorded
property lines and streets as boundaries. Some or all of the boundaries of
a county water and sewer district may also be used when the entire district not
already within the corporate limits of a municipality is being annexed.
(f) The area of an abolished water and sewer district shall be considered to be a water and sewer district for the purpose of this section even after its abolition under G.S. 162A-87.2(b)."
Section 15. G.S. 160A-49 reads as rewritten:
"§ 160A-49. Procedure for annexation.
(a) Notice of Intent. -
Any municipal governing board desiring to annex territory under the provisions
of this Part shall first pass a resolution stating the intent of the
municipality to consider annexation. Such resolution shall describe the
boundaries of the area under consideration consideration, fix a date
for a public informational meeting, and fix a date for a public hearing on
the question of annexation, the annexation. The date for the
public informational meeting shall be not less than 45 days and not more than
55 days following passage of the resolution. The date for such the
public hearing to be not less than 45 60 days and not more
than 90 days following passage of the resolution.
(b) Notice of Public Hearing. - The notice of public hearing shall:
(1) Fix the date, hour and place of the public informational meeting and the date, hour, and place of the public hearing.
(2) Describe clearly the boundaries of the area under consideration, and include a legible map of the area.
(3) State that the report
required in G.S. 160A-47 will be available at the office of the municipal clerk
at least 30 days prior to the date of the public hearing. informational
meeting.
(4) Include a notice of a property owner's rights to request water and sewer service in accordance with G.S. 160A-47.
(5) Include an explanation of a property owner's rights pursuant to subsections (f1) and (f2) of this section.
Such notice shall be given by publication once a week for at
least two successive weeks prior to the date of the hearing informational
meeting in a newspaper having general circulation in the municipality and,
in addition thereto, if the area to be annexed lies in a county containing less
than fifty percent (50%) of the land area of the municipality, in a newspaper
having general circulation in the area of proposed annexation. The period from
the date of the first publication to the date of the last publication, both
dates inclusive, shall be not less than eight days including Sundays, and the
date of the last publication shall be not more than seven days preceding the
date of public hearing. informational meeting. If there be
no such newspaper, the municipality shall post the notice in at least five
public places within the municipality and at least five public places in the
area to be annexed for 30 days prior to the date of public hearing. informational
meeting. In addition, notice shall be mailed at least four weeks
prior to date of the hearing informational meeting by first class
mail, postage prepaid to the owners as shown by the tax records of the county
of all freehold interests in real property located within the area to be
annexed. The person or persons mailing such notices shall certify to the
governing board that fact, and such certificate shall become a part of the
record of the annexation proceeding and shall be deemed conclusive in the
absence of fraud. If the notice is returned to the city by the postal service
by the tenth day before the hearing, informational meeting, a
copy of the notice shall be sent by certified mail, return receipt requested,
at least seven days before the hearing. informational meeting. Failure
to comply with the mailing requirements of this subsection shall not invalidate
the annexation unless it is shown that the requirements were not substantially
complied with. If the governing board by resolution finds that the tax records
are not adequate to identify the owners of some or all of the parcels of real
property within the area it may in lieu of the mail procedure as to those
parcels where the owners could not be so identified, post the notice at least
30 days prior to the date of public hearing informational meeting on
all buildings on such parcels, and in at least five other places within the
area to be annexed. In any case where notices are placed on property, the
person placing the notices shall certify that fact to the governing board.
(c) Action Prior to Hearing.
Informational Meeting. - At least 30 days before the date of the
public hearing, informational meeting, the governing board shall
approve the report provided for in G.S. 160A-47, and shall make it available to
the public at the office of the municipal clerk. In addition, the municipality
may prepare a summary of the full report for public distribution. In addition,
the city shall post in the office of the city clerk, at least 30 days before
the public hearing, informational meeting, a legible map of the
area to be annexed and a list of persons holding freehold interests in property
in the area to be annexed that it has identified.
(c1) Public Informational Meeting. - At the public informational meeting a representative of the municipality shall first make an explanation of the report required in G.S. 160A-47. Following such explanation, all persons resident or owning property in the territory described in the notice of public hearing, and all residents of the municipality, shall be given the opportunity to ask questions and receive answers regarding the proposed annexation.
(d) Public Hearing. - At the public hearing a representative of the municipality shall first make an explanation of the report required in G.S. 160A-47. Following such explanation, all persons resident or owning property in the territory described in the notice of public hearing, and all residents of the municipality, shall be given an opportunity to be heard.
(e) Passage of the Annexation Ordinance. - The municipal governing board shall take into consideration facts presented at the public hearing and shall have authority to amend the report required by G.S. 160A-47 to make changes in the plans for serving the area proposed to be annexed so long as such changes meet the requirements of G.S. 160A-47, provided that if the annexation report is amended to show additional subsections of G.S. 160A-48(c) or (d) under which the annexation qualifies that were not listed in the original report, the city must hold an additional public hearing on the annexation not less than 30 nor more than 90 days after the date the report is amended, and notice of such new hearing shall be given at the first public hearing. At any regular or special meeting held no sooner than the tenth day following the public hearing and not later than 90 days following such public hearing, the governing board shall have authority to adopt an ordinance extending the corporate limits of the municipality to include all, or such part, of the area described in the notice of public hearing which meets the requirements of G.S. 160A-48 and which the governing board has concluded should be annexed. The ordinance shall:
(1) Contain specific findings showing that the area to be annexed meets the requirements of G.S. 160A-48. The external boundaries of the area to be annexed shall be described by metes and bounds. In showing the application of G.S. 160A-48(c) and (d) to the area, the governing board may refer to boundaries set forth on a map of the area and incorporate same by reference as a part of the ordinance.
(2) A statement of the intent of the municipality to provide services to the area being annexed as set forth in the report required by G.S. 160A-47.
(3) A specific finding that on the effective date of annexation the municipality will have funds appropriated in sufficient amount to finance construction of any major trunk water mains and sewer outfalls and such water and sewer lines as required in G.S. 160A-47(3)(b) found necessary in the report required by G.S. 160A-47 to extend the basic water and/or sewer system of the municipality into the area to be annexed, or that on the effective date of annexation the municipality will have authority to issue bonds in an amount sufficient to finance such construction. If authority to issue such bonds must be secured from the electorate of the municipality prior to the effective date of annexation, then the effective date of annexation shall be no earlier than the day following the statement of the successful result of the bond election.
(4) Fix the effective date
for annexation. The effective date of annexation may be fixed for any date not
less than 40 days 70 days nor more than 400 days from the
date of passage of the ordinance.
(f) Effect of
Annexation Ordinance. - Except as provided in subsection (f1) of this section,
from From and after the effective date of the annexation ordinance,
the(f) Effect of Annexation Ordinance. - From and after the effective date of
the annexation ordinance, the territory and its citizens and property shall be
subject to all debts, laws, ordinances and regulations in force in such
municipality and shall be entitled to the same privileges and benefits as other
parts of such municipality. Real and personal property in the newly annexed
territory on the January 1 immediately preceding the beginning of the fiscal
year in which the annexation becomes effective is subject to municipal taxes as
provided in G.S. 160A-58.10. Provided that annexed property which is a part of
a sanitary district, which has installed water and sewer lines, paid for by the
residents of said district, shall not be subject to that part of the municipal
taxes levied for debt service for the first five years after the effective date
of annexation. If this proviso should be declared by a court of competent
jurisdiction to be in violation of any provision of the federal or State
Constitution, the same shall not affect the remaining provisions of this Part.
If the effective date of annexation falls between June 1 and June 30, and the
effective date of the privilege license tax ordinance of the annexing
municipality is June 1, then businesses in the area to be annexed shall be
liable for taxes imposed in such ordinances from and after the effective date
of annexation.
(f1) Property Subject to Present-Use Value Appraisal. - If an area described in an annexation ordinance includes agricultural land, horticultural land, or forestland that on the effective date of annexation is:
(1) Land that is being taxed at present-use value pursuant to G.S. 105-277.4; or
(2) Land that:
a. Was on the date of the resolution of intent for annexation being used for actual production and is eligible for present-use value taxation under G.S. 105-277.4, but the land has not been in use for actual production for the required time under G.S. 105-277.3; and
b. The assessor for the county where the land subject to annexation is located has certified to the city that the land meets the requirements of this subdivision
the annexation becomes effective as to that property pursuant to subsection (f2) of this section.
(f2) Effective Date of Annexation for Certain Property. - Annexation of property subject to annexation under subsection (f1) of this section shall become effective:
(1) Upon the effective date of the annexation ordinance, the property is considered part of the city only (i) for the purpose of establishing city boundaries for additional annexations pursuant to this Article and (ii) for the exercise of city authority pursuant to Article 19 of this Chapter.
(2) For all other purposes, the annexation becomes effective as to each tract of such property or part thereof on the last day of the month in which that tract or part thereof becomes ineligible for classification pursuant to G.S. 105-227.4 or no longer meets the requirements of subdivision (f1)(2) of this section. Until annexation of a tract or a part of a tract becomes effective pursuant to this subdivision, the tract or part of a tract is not subject to taxation by the city under Article 12 of Chapter 105 of the General Statutes nor is the tract or part of a tract entitled to services provided by the city.
(g) Simultaneous Annexation Proceedings. - If a municipality is considering the annexation of two or more areas which are all adjacent to the municipal boundary but are not adjacent to one another, it may undertake simultaneous proceedings under authority of this Part for the annexation of such areas.
(h) Remedies for Failure to Provide Services. - If, not earlier than one year from the effective date of annexation, and not later than 15 months from the effective date of annexation, any person owning property in the annexed territory shall believe that the municipality has not followed through on its service plans adopted under the provisions of G.S. 160A-47(3) and 160A-49(e), for any required service other than water and sewer services such person may apply for a writ of mandamus under the provisions of Article 40, Chapter 1 of the General Statutes. Relief may be granted by the judge of superior court
(1) If the municipality has not provided the services set forth in its plan submitted under the provisions of G.S. 160A-47(3)a on substantially the same basis and in the same manner as such services were provided within the rest of the municipality prior to the effective date of annexation, and
(2) If at the time the writ is sought such services set forth in the plan submitted under the provisions of G.S. 160A-47(3)a are still being provided on substantially the same basis and in the same manner as on the date of annexation of the municipality.
If, not earlier than 24 months from the effective date of the annexation, and not later than 27 months from the effective date of the annexation, any person owning property in the annexed area can show that the plans submitted under the provisions of G.S. 160A-47(3)c require the construction of major trunk water mains and sewer outfall lines and if construction has not been completed within two years of the effective date of the annexation, relief may also be granted by the superior court by an order to the municipality to complete such lines and outfalls within a certain time. Similar relief may be granted by the superior court to any owner of property who made a timely request for a water or sewer line, or both, pursuant to G.S. 160A-47(3)b and such lines have not been completed within two years from the effective date of annexation in accordance with applicable city policies and through no fault of the owner, if such owner petitions for such relief not earlier than 24 months following the effective date of annexation and not later than 27 months following the effective date of annexation.
If a writ is issued, costs in the action, including a reasonable attorney's fee for such aggrieved person, shall be charged to the municipality.
(i) No resolution
of intent may be adopted under subsection (a) of this section unless the city
council (or planning agency created or designated under either G.S. 160A-361 or
the charter) has, by resolution adopted at least one year prior to adoption of
the resolution of intent, identified the area as being under consideration for annexation;
annexation and included a statement in the resolution notifying persons
subject to the annexation of their rights under subsections (f1) and (f2) of
this section; provided, adoption of such resolution of consideration shall
not confer prior jurisdiction over the area as to any other city. The area
described under the resolution of intent may comprise a smaller area than that
identified by the resolution of consideration. The resolution of consideration
may have a metes and bounds description or a map and shall remain effective for
two years after adoption, and shall be filed with the city clerk. A new
resolution of consideration adopted before expiration of the two-year period
for a previously adopted resolution covering the same area shall relate back to
the date of the previous resolution.
(j) Subsection (i) of this section shall not apply to the annexation of any area if the resolution of intent describing the area and the ordinance annexing the area both provide that the effective date of the annexation shall be at least one year from the date of passage of the annexation ordinance.
(k) If a valid request for extension of a water or sewer line has been made under G.S. 160A-47(3)b, and the extension is not complete at the end of two years after the effective date of the annexation ordinance, the owner of the property may petition the Local Government Commission for abatement of taxes to be paid to the city which have not been levied as of the expiration date of the two-year period, if such petition is filed not more than 60 days after the expiration of the two-year period. If the Local Government Commission finds that the extension to the property was not complete by the end of the two-year period, it shall enter an order directing the city not to levy any further ad valorem taxes on the property until the fiscal year commencing after completion of the extension. In addition, if the Local Government Commission found that the extension to the property was not completed by the end of the two-year period, and if it finds that for any fiscal year during the period beginning with the first day of the fiscal year in which the annexation ordinance became effective and ending the last day of the fiscal year in which the two-year period expired, the city made an appropriation for construction, operation or maintenance of a water or sewer system (other than payments the city made as a customer of the system) from the fund or funds for which ad valorem taxes are levied, then the Local Government Commission shall order the city to release or refund an amount of the petitioner's property taxes for that year in question in proportion to the percentage of appropriations in the fund made for water and sewer services. By way of illustration, if a net amount of one hundred thousand dollars ($100,000) was appropriated for water or sewer construction, operation or maintenance from a fund which had total expenditures of ten million dollars ($10,000,000) and the petitioner's tax levy was one thousand dollars ($1,000), the amount of release or refund shall be ten dollars ($10.00).
(l) If a city fails to deliver police protection, fire protection, solid waste or street maintenance services as provided for in G.S. 160A-47(3)a. within 60 days after the effective date of the annexation, the owner of the property may petition the Local Government Commission for abatement of taxes to be paid to the city for taxes that have been levied as of the end of the 60-day period, if the petition is filed not more than 90 days after the expiration of the 60-day period. If the Local Government Commission finds that services were not extended by the end of the 60-day period, it shall enter an order directing the city not to levy any further ad valorem taxes on the property until the fiscal year commencing after extension of the municipal services."
Section 16. G.S. 160A-49.2 reads as rewritten:
"§ 160A-49.2. Assumption of debt.
(a) If the city has
annexed any area which is served by a rural fire department and which is in an
insurance district defined under G.S. 153A-233, a rural fire protection
district under Article 3A of Chapter 69 of the General Statutes or a fire
service district under Article 16 of Chapter 153A of the General Statutes, then
upon the effective date of annexation if the city has not contracted with the
rural fire department for fire protection, or when the rural fire department
ceases to provide fire protection under contract, then the city shall pay
annually a proportionate share of any payments due on any debt (including
principal and interest) relating to facilities or equipment of the rural fire
department, if the debt was existing at the time of adoption of the resolution
of intent, with the payments in the same proportion that the assessed valuation
of the area of the district annexed bears to the assessed valuation of the
entire district on the date the annexation ordinance becomes effective. effective
or another date for valuation mutually agreed upon by the city and the fire
department.
(b) The city and rural fire department shall jointly present a payment schedule to the Local Government Commission for approval and no payment may be made until such schedule is approved."
Section 17. G.S. 160A-49.3(h) reads as rewritten:
"(h) A firm which has
given notice under subsection (a) of this section that it desires to contract,
and any firm that the city believes is eligible to give such notice, shall make
available to the city not later than five 10 business days
following a written request of the city city, sent by certified mail
return receipt requested, all information in its possession or control,
including but not limited to operational, financial and budgetary information,
necessary for the city to determine if the firm qualifies for the benefits of
this section and to determine the nature and scope of the potential contract
and/or economic loss. The firm forfeits its rights under this section if it
fails to make a good faith response within 10 business days following receipt
of the written request for information from the city, provided that the city's
written request so states by specific reference to this section."
Section 18. G.S. 160A-50 reads as rewritten:
"§ 160A-50. Appeal.
(a) Within 30 days 60
days following the passage of an annexation ordinance under authority of
this Part, any person owning property in the annexed territory who shall
believe that he will suffer material injury by reason of the failure of the
municipal governing board to comply with the procedure set forth in this Part
or to meet the requirements set forth in G.S. 160A-48 as they apply to his
property may file a petition in the superior court of the county in which the
municipality is located seeking review of the action of the governing board.
(b) Such petition shall
explicitly state what exceptions are taken to the action of the governing board
and what relief the petitioner seeks. Within five days 10 days
after the petition is filed with the court, the person seeking review shall
serve copies of the petition by registered mail, return receipt requested, upon
the municipality.
(c) Within 15 days after receipt of the copy of the petition for review, or within such additional time as the court may allow, the municipality shall transmit to the reviewing court
(1) A transcript of the portions of the municipal journal or minute book in which the procedure for annexation has been set forth and
(2) A copy of the report setting forth the plans for extending services to the annexed area as required in G.S. 160A-47.
(d) If two or more petitions for review are submitted to the court, the court may consolidate all such petitions for review at a single hearing, and the municipality shall be required to submit only one set of minutes and one report as required in subsection (c).
(e) At any time before or during the review proceeding, any petitioner or petitioners may apply to the reviewing court for an order staying the operation of the annexation ordinance pending the outcome of the review. The court may grant or deny the stay in its discretion upon such terms as it deems proper, and it may permit annexation of any part of the area described in the ordinance concerning which no question for review has been raised.
(f) The court shall fix the date for review of annexation proceedings under this Part, which review date shall preferably be within 30 days following the last day for receiving petitions to the end that review shall be expeditious and without unnecessary delays. The review shall be conducted by the court without a jury. The court may hear oral arguments and receive written briefs, and may take evidence intended to show either
(1) That the statutory procedure was not followed, or
(2) That the provisions of G.S. 160A-47 were not met, or
(3) That the provisions of G.S. 160A-48 have not been met.
(g) The court may affirm the action of the governing board without change, or it may
(1) Remand the ordinance to the municipal governing board for further proceedings if procedural irregularities are found to have materially prejudiced the substantive rights of any of the petitioners.
(2) Remand the ordinance to the municipal governing board for amendment of the boundaries to conform to the provisions of G.S. 160A-48 if it finds that the provisions of G.S. 160A-48 have not been met; provided, that the court cannot remand the ordinance to the municipal governing board with directions to add area to the municipality which was not included in the notice of public hearing and not provided for in plans for service.
(3) Remand the report to the municipal governing board for amendment of the plans for providing services to the end that the provisions of G.S. 160A-47 are satisfied.
(4) Declare the ordinance null and void, if the court finds that the ordinance cannot be corrected by remand as provided in subdivisions (1), (2), or (3) of this subsection.
If any municipality shall fail to take action in accordance with the court's instructions upon remand within three months from receipt of such instructions, the annexation proceeding shall be deemed null and void.
(h) Any party to the review proceedings, including the municipality, may appeal to the Court of Appeals from the final judgment of the superior court under rules of procedure applicable in other civil cases. The superior court may, with the agreement of the municipality, permit annexation to be effective with respect to any part of the area concerning which no appeal is being made and which can be incorporated into the city without regard to any part of the area concerning which an appeal is being made.
(i) If part or all of the area annexed under the terms of an annexation ordinance is the subject of an appeal to the superior court, Court of Appeals or Supreme Court on the effective date of the ordinance, then the ordinance shall be deemed amended to make the effective date with respect to such area the last day of the next full calendar month following the date of the final judgment of the superior court or appellate division, whichever is appropriate, or the date the municipal governing board completes action to make the ordinance conform to the court's instructions in the event of remand. For the purposes of this subsection, a denial of a petition for rehearing or for discretionary review shall be treated as a final judgement.
(j) If a petition for review is filed under subsection (a) of this section or an appeal is filed under G.S. 160A-49.1(g) or G.S. 160A-49.3(g), and a stay is granted, then the time periods of two years, 24 months or 27 months provided in G.S. 160A-47(3)c, 160A-49(h), or 160A-49(j) are each extended by the lesser of the length of the stay or one year for that annexation.
(k) The provisions of subsection (i) of this section shall apply to any judicial review authorized in whole or in part by G.S. 160A-49.1(i) or G.S. 160A-49.3(g).
(l) In any proceeding related to an annexation ordinance appeal under this section, a city shall not state a claim for lost property tax revenue caused by the appeal. Nothing in this Article shall be construed to mean that as a result of an appeal a municipality may assert a claim for property tax revenue lost during the pendency of the appeal.
(m) Any settlement reached by all parties in an appeal under this section may be presented to the superior court in the county in which the municipality is located. If the superior court, in its discretion, approves the settlement, it shall be binding on all parties without the need for approval by the General Assembly."
Section 19. G.S. 160A-54 reads as rewritten:
"§ 160A-54. Population and land estimates.
In determining population and degree of land subdivision for
purposes of meeting the requirements of G.S. 160A-48, the municipality shall use
methods calculated to provide reasonably accurate results. In determining
whether the standards set forth in G.S. 160A-48 have been met on appeal to the
superior court under G.S. 160A-50, the reviewing court shall accept the
estimates of the municipality: municipality unless the actual
population, total area, or degree of land subdivision falls below the standards
in G.S. 160A-48:
(1) As to population, if the estimate is based on the number of dwelling units in the area multiplied by the average family size in such area, or in the township or townships of which such area is a part, as determined by the last preceding federal decennial census; or if it is based on a new enumeration carried out under reasonable rules and regulations by the annexing municipality; provided, that the court shall not accept such estimates if the petitioners demonstrate that such estimates are in error in the amount of ten percent (10%) or more.
(2) As to total area if the estimate is based on an actual survey, or on county tax maps or records, or on aerial photographs, or on some other reasonably reliable map used for official purposes by a governmental agency, unless the petitioners on appeal demonstrate that such estimates are in error in the amount of five percent (5%) or more.
(3) As to degree of land subdivision, if the estimates are based on an actual survey, or on county tax maps or records, or on aerial photographs, or on some other reasonably reliable source, unless the petitioners on appeal show that such estimates are in error in the amount of five percent (5%) or more."
Section 20. This act becomes effective November 1, 1998, and applies to annexations for which the resolution of intent is adopted on or after that date. Sections 2 and 3 shall not apply to any incorporation proposal originally presented to the Joint Legislative Commission on Municipal Incorporations prior to the effective date.
In the General Assembly read three times and ratified this the 14th day of September, 1998.
s/ Dennis A. Wicker
President of the Senate
s/ Harold J. Brubaker
Speaker of the House of Representatives
s/ James B. Hunt, Jr.
Governor
Approved 12:00 noon this 22nd day of September, 1998