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IT <br />j' in capital improvements such as buildings, land, equipment, etc., per residential unit, according to <br />to the following formula: <br />I , <br />Based on lots , y <br />j 4 per acre 5180 acres in City. <br />. 5180 acres x 4 = 20,720 lots <br />City's investment in Capital Improvements, $$3,500.000 <br />J <br />Hence: $$3,500,000 - $$168 per lot. <br />30,720 <br />Mr. Wise states that the estimate of $$3,500.000 for City owned land and capita improements is <br />e <br />very conservative, and that this sum is clear of all bonded indebtedness and other encumbrances. <br />Cow ,t <br />thi+ e-� ,n ANNEXATION CHARGES <br />Bri <br />In compliance with the Council's request for a recommendation on a possible annexation <br />Cow charge, we have studied the methods used by various cities as outlined in the City Manager's <br />Memorandum of July 13, 1955• In addition, visits were made to the Cities of Hayward and <br />que, Sunnyvale f or a discussion of the basis for charges imposed by those cities. )f <br />raii <br />After a review of the various methods of arriving at a charge for annexation to the city <br />it was felt that study of two approaches merited further consideration. The first to be based <br />bi; <br />on cost of providing water storage and supply in the upper areas, sewer outfalls, additional a <br />treatment plant capacity and enlargement of drainage facilities for areas proposed for <br />ses <br />annexation; and the second to be based on a share of the costs of the capital improvements of <br />the city excluding water, sewer and drainage lines but including city buildings, equipment, <br />Mayor H9 <br />parks, etc. <br />Col <br />Consultation was had with Mr. Adamson relative to costs of providing water, sewer and )y <br />drainage facilities to the western area report of November, 1954. While it is recognized that <br />the <br />the figures are not precise nor comprehensive because of the possibility of considerable <br />variation in approach, they do serve as one approach to the problem. All assumptions for <br />Dfay <br />water, sewer and drainage are based on a potential of 5100 lots in an area of approximately 2200 <br />acres. <br />CLAIMS #+ . <br />onded <br />estimated costs for each of the three services (in addition to facilities normally <br />'A1The <br />by, <br />required of the subdivider) for the western area are as follows: <br />Council <br />1. Water: Cost per residence unit . . . . . . . . . . $ 78.00 <br />2. Sewers: Cost per residence unit . . . . . . . . . ..$ 34.00 <br />I <br />ad` <br />Cost for treatment - capacity per residence unit . . $$ 34.00 <br />3• Drainage: Cost per residence unit . . . . . . . . . $$ 50.00 <br />Total per residence unit . . . $$202.00 <br />Using the added cost of furnishing water, sewer and drainage facilities as a basis for <br />arriving at an annexation charge, we arrive at a round figure of $200.00 per residence unit. <br />The second approach, based on arriving at a fair share per family unit, of the capital <br />improvements of the city, excluding sewer, water and drainage facilities, was calculated'on the <br />present day estimated value of all such capital improvements - They are as follows: <br />All equipment, including automotive and mobile equipment, radios and transmitters, road <br />DEVOTIO, equipment, fixtures and furniture, v$ 2,1293409 <br />ON ROLL All land, including parks, city hall site, fire station sites, <br />i corporation yard site, sewer plant and reservoir site, etc. $ 1070,591 <br />Wil Total value of city property $ 3,500,000 , <br />All In order to arrive at the fair share of capital improvements for newly annexed areas, we ,' <br />figure as follows: <br />Wail figure <br />5100 building site potential X $3,500,000 <br />S.; 14000 existing building sites 5100 ,ng <br />Ca or, in round figures - $$245.00 per building site or residence unit. <br />Ho A simpler and perhaps less comlicated method of arriving at a share of the capital <br />improvements would be as follows: <br />The min _lman <br />2200 acres potential % X3,500.00 <br />Ro 5180 acres in city 2200 <br />PUBLIC or, $$675.00 per acre in round figures - or using a figures of 4 building sites per acre, a IRK <br />(5 charge of $$168.00 per lot. <br />Annexation charges, based on a share of the ecisting capital improvements of the city, <br />su seems to be a precise and equitable approach to the problem and can be readily justified on the <br />basis of newly annexed areas buying a share of the stock of a going corporation. <br />