What is the history behind this effort?

The Park Rapids area is growing up. As a result, the City and the surrounding Townships are experiencing unprecedented challenges and opportunities related to growth management and service delivery. In the past we have tried to address those challenges alone, independent of each other. The old model of doing business often resulted in more than a little competition and hard feelings.

Over a year ago proposed annexations brought the issue to a head. Both the City of Park Rapids and Henrietta Township felt there might be a better way to address these long-term challenges. Hence, the resulting effort.

What was the goal of this initiative?

In general, the goal was to explore and find ways to work together to improve the delivery of services (principally sewer and water) and to also improve growth management services (i.e. planning and zoning).

Who was involved?

A 12 member task force (see below) was appointed by the City of Park Rapids and Henrietta Township. Six members were selected by each governing body for each jurisdiction. These members included elected officials, an at-large member, and staff of the jurisdictions. In addition, all elected officials in the three jurisdictions were kept informed on a regular basis by the task force members they represented.

What did the decision-making process look like?

The process involved the following steps:

• Existing growth trends and development patterns were reviewed. The Park Rapids area is experiencing significant growth. The existing patterns of development, as well as the geographical distribution of potential new growth, has influence on the decisions that are made for growth management.

• Other community experiences were investigated. The Park Rapids area is not the only community tackling these issues. The efforts in other areas were reviewed.

• A better understanding and respect for each jurisdiction’s perspective was developed. Successful collaborative work involves the improvement of personal and institutional relationships. The year-long planning process helped to improve the relationships between elected officials and between jurisdictions.

• A solution that was seen as a mutual gain for all entities was negotiated. All too often, negotiations are seen as a win/lose contest, where one side gains advantage, at the expense of other entities. The task force was committed to finding a solution that was in the best interests of all jurisdictions as well as the entire community.

Table 1 Hubbard County - Hazard Mitigation Planning Initial Assessment
	North (Sector 1)	Central (Sector 2)		South (Sector 3)
Socio-Demographics
Hazard Materials Facilities (#)	3		0	8
Dams and Levees	0		0	6
Small	0		0	3
Large	0		0	3
Emergency Response Coverage
Fire (% structures in 10 mi.)	95		99	98
Law Enf. (% structures in 10 mi.)	84		2	93
Ambulance (% structures in 10 mi.)	84		0	80

What are the results?

The task force recommends a joint planning process that would produce an agreed upon vision for the proposed annexation area. That area would be regulated by the city code, but only after agreement on the substance of those regulations by the Town Board. The City Building Code would also cover the entire area. It also recommends that city sewer and water be available under the same conditions it is available to city residents, to the entire area that would eventually be within the expanded city limits. Finally, the task force is recommending orderly annexation of an area in the township over a 10 year period, accompanied by a five year transition period that would minimize the financial impact to those property owners in an annexed area, and to the township that will transfer land to the city. The details are provided on the rest of this poster board.

Orderly Annexation

Areas: 4 areas – 2007, 2009, 2012, and 2017

Tax Levy Phase-in: The difference in City/Township tax rate to the owners of property annexed shall be equalized proportionally over a period of five years following its annexation to the City.

Tax Distribution: The City and Township agree that the City will pay the Township an amount equal to 100% of the Township property taxes in the year of annexation collected from the annexed property in the calendar year following the annexation. In each of the five succeeding

Provision of Services

Sewer and Water- Upon signing of this agreement, sewer and water service shall be available immediately to all residents within all agreed-upon annexation areas under the same terms, conditions and policies as is available to city residents. If City proposes different sewer

and water policies these policies must be reviewed first by the Township

Provision of Other Services - The City will provide police, fire protection and street maintenance upon annexation.

Planning and Regulations

· The areas to be annexed would come under City regulatory authority

· A joint City/Township task force will be charged with coming to an agreement on changes to the city plan and ordinance to accommodate these new areas

· The town board will have to approve these changes prior to adoption by the Park Rapids Council

· The Uniform Building Code will apply to the annexed area

years, the City will pay the township that same amount each year.

What are the benefits?

- Both jurisdictions have a voice in the development of the annexed area

- The greater Park Rapids community is better positioned to address future

problems and take advantage of new opportunities on the east side of town

- Individuals that need central sewer and water will have it available.

- The City and Township have improved predictability for their own planning and budgeting efforts.

- Each jurisdiction and individuals have ample time to adjust to changes.

- Each jurisdiction has resources for long term health and viability.

- The two jurisdictions can put disagreements behind them, and focus on other issues that could benefit from a cooperative approach

What will be the Impact to the Township Jurisdiction?

The area to be annexed over the next ten years includes less than 9% of the township’s entire tax base, so the loss of tax base would be less than 1% per year on average. (see map). In addition, Henrietta Township nearly doubled its estimated market value over the last 5 years.

The agreement with the City allows the Township to be reimbursed 100% for its loss of revenue beginning the year of annexation and for the 5 years following. The revenue drain will be very minor.

What will be the Impact to individual township residents?

If a township resident paid the township $100/year in taxes (the township portion) in 2006, and was in the 2012 area to be annexed, their township part of their taxes, assuming everything stayed the same, would continue to be $100 a year until the year 2013 (the year after annexation). For the subsequent five years, that property’s taxes (now paid to the city) would increase by about $64 yr.

For those township residents not in the annexation area, it is anticipated that the change in taxes as a result of the annexation would be very minimal, if any.