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HomeMy WebLinkAbout05/28/2024 08. Growth Plan and Annexation Study Update 1 :,...,._,) a, ga, BUSINESS OF THE CITY COUNCIL YAKIMA, WASHINGTON AGENDA STATEMENT Item No. 8. For Meeting of: May 28, 2024 ITEM TITLE: Growth Plan and Annexation Study Update SUBMITTED BY: Bill Preston, Interim Community Development Director *Eric Crowell, Senior Planner SUMMARY EXPLANATION: The purpose of this presentation is to provide an update regarding the annexation study undertaken by the City utilizing the FCS Group. The study is nearing completion. Staff will provide an overview of the areas under study and the process for annexing new territory into the city limits. ITEM BUDGETED: NA STRATEGIC PRIORITY: Neighborhood and Community Building APPROVED FOR SUBMITTAL BY THE CITY MANAGER RECOMMENDATION: ATTACHMENTS: Description Upload Date Type D Annexation Draft Report 5/22/2024 D Annexation Study Update presentation 5/21/2024 2 City of Yakima Growth Plan and Annexation Study DRAFT REPORT March 6, 2024 • * Washington • 7525 166th Avenue NE,Ste.D215 Redmond,WA 98052 425.867.1802 Oregon 5335 Meadows Road,Ste 330 Lake Oswego,OR 97035 503.841.6543 Colorado 2755 Canyon Blvd Boulder,CO 80302 719.284.9168 www.fcsgroup.com •:;> FCS GROUP Solutions-Oriented Consulting 3 TABLE OF CONTENTS Table of Contents I. Introduction 3 Study Purpose 3 Report Organization 4 Planning Background 4 Overview Of Study Areas 5 II. Community Overview 8 Population and Income 8 Employment and Unemployment 9 Development Overview 10 Commercial and Industrial Market Potential 11 III. Subarea Development Potential 13 Buildable Land Inventory 13 Study Area Opportunities and constraints 13 Area 1 Terrace Heights 13 Area 2 South Airport 15 Area 3 Bachelor Creek 16 Area 4 West Valley 18 Area 5 Northwest 20 Infrastructure and serviceability 21 IV. Fiscal Impact Assessment 23 Methodology 23 Fiscal Impact Drivers 24 General Government fiscal Impacts 25 Short-Term Fiscal Impacts 26 Long-Term Fiscal Impacts 28 Finn Headquarters Locations page i Rednond Town Center Washington 1425.867.1802 7525166",Ave NE,Ste D-215 Oregon 1503.841.6543 Rednond,Washington 98052 Colorado 1719.284.9168 March 2024 4 City of Yakima FCS GROUP Growth Plan and Annexation Study Overall Fiscal Impacts 28 Summary&Policy Considerations 30 Appendix A: Buildable Land Inventory Methodology 31 Appendix B: ESRI Market Data 35 ***.) FC.,S GROUP page ii March 2024 5 City of Yakima FCS GROUP Growth Plan and Annexation Study . INTRODUCTION STUDY PURPOSE The Yakima Growth Plan and Annexation Study provides a current understanding of how future annexations and resulting changes in population, housing, employment and assessed valuation levels impact the City's municipal budget. The findings are intended to inform future annexation decisions by considering the fiscal impacts of growth and development on the City of Yakima. SUMMARY OF FINDINGS The Yakima Annexation Growth Study provides a relative comparison of the relative costs and benefits of serving potential areas outside the current City limits. This analysis considers community growth opportunities for housing and employment over the long-term. The study included an assessment of existing development conditions and future buildable lands for each study area. A baseline growth forecast for housing and employment in each area is provided to ascertain the relative fiscal impacts on General Government revenues and expenditures. These findings also consider the near-term infrastructure serviceability and relative capital costs for each area. Key Findings: • Area 1—Terrace Heights and Area 4—West Valley received high highest infrastructure and public facility serviceability rankings. However, there are significant transportation, sanitary sewer and water system capital investments that would need to be made for these areas to fully develop. • The findings indicate that annexations, on average, have an overall positive net fiscal impact on the City's General Fund that equates to $575 per person, $890 per non-retail job and $1,532 per retail job if added to the City (Table S-1). • Based on current development conditions, land use regulations and buildable lands,the most positive annual General Fund fiscal impacts per acre are expected to be generated within Area 1—Terrace Heights and Area 2—South Airport. • Local land use policies and regulations that encourage or incentivize a mix of housing types (such as townhomes and apartments) can measurably enhance the overall fiscal benefit that can be achieved in each annexation areas. Table S-1 Summary of Annual Fiscal Impacts on Yakima General Fund Avg.Annual General Fund Impact Per Pop. &Per Job(2024$) Average Annual Impact FY 2014-2023 GF Revenue GF Expense Net GF Impact Gen.Fund Impact Per Pop. $ 2,434 $ (1,859) $ 575 Gen. Fund Impact Per Avg.job $ 5,117 $ (4,227) $ 890 Gen. Fund Impact Per Retail job $ 5,759 $ (4,227) $ 1,532 4> FCS GROUP page 3 March 2024 6 City of Yakima FCS GROUP Growth Plan and Annexation Study REPORT ORGANIZATION This report and its findings are described in the following sections. I. Introduction & Summary Study Purpose Summary of Findings Report Organization Overview of the Study Areas II. Community Overview Population and Income Employment and Unemployment Development Overview III. Subarea Development Potential Buildable Land Inventory Development Opportunities and Constraints Infrastructure Serviceability IV. Fiscal Sustainability Assessment Methodology General Government Fiscal Impacts Summary & Policy Considerations PLANNING BACKGROUND The City of Yakima is a unique community with a rich and colorful history. Originally incorporated in 1883,the City of Yakima established itself as an agricultural and manufacturing hub on the banks of the Naches River and Yakima River in Central Washington. The City serves as the primary commercial and industrial service center for residents of Yakima County, and the greater Central Washington region. This study was completed over a six-month period using current and long-range planning and budgeting assumptions for the City of Yakima. Selected background planning initiatives include: • We Are Yakima Comprehensive Plan 2040 • City of Yakima Economic Development Strategic Plan • City of Yakima 2040 Transportation System Plan, 2017 • City of Yakima Housing Action Plan • Yakima Downtown Master Plan • Terrace Heights Neighborhood Plan, 1999 • Terrace Heights Water System Plan, 2019 • Nob Hill Water System Master Plan, 2022 Update. •4•> FCS GROUP page 4 March 2024 7 City of Yakima FCS GROUP Growth Plan and Annexation Study Exhibit 1: Yakima Future Land Category Map t l! . YAKIMA 2040 - tta COMPREHENSIVE PLAN UPDATE -"-"'"" Future Land Use L. . ij--9 .. . illi. ‘.-----(.., Is**** �V% GenewOCaryeed atal: • WI. Mixed Residential k ■Central Vuaness Core Commercial WI Commercial MixtlO Use■Regional Commercial ' Community Mudd Vse / 1 Industrial . 0 Yakima City Limits 1 I J J � �U _i• Urban Growth Area --,_s- 0 0.5 1 1.5 Miles lLi 6 liiiliiilklil a f Pr"' .-°,` l.1 ax, t Yakima GI$ j� r--..w.r�m „ May.2017 �_k 171 The Future Land the Map illustrates the combination of current land use.current toning.and future uses of each parcel of land within the City of Yakima.The map category Is necessary to provide certainty to the \7. _y community members,residents,and property owners about what type of land use will be located around them.And,where to expect future services.and development based on the goals,pohcies and objectives of this Plan 20a0. OVERVIEW OF STUDY AREAS This study focuses on an evaluation of five potential areas where future annexations may be expected to occur. The five study areas are shown in Exhibits 2A and 2B. Each of these areas have unique environmental features and variations in existing land use and infrastructure conditions. An overview of each study area is provided below. For a more detailed map of land constraints and buildable lands within each study area, please refer to Appendix A. Area 1 Terrace Heights • Encompasses the relatively well-developed Terrace Heights area of unincorporated Yakima County. • Area 1 primarily consists of single family residential along with a mix of commercial and multifamily along main roadways. • Transportation infrastructure investment is needed, particularly replacement of a bridge crossing the Yakima River. • The area could accommodate significant levels of additional employment and housing, but major roadway improvements will be necessary before that can occur. *•*> FCS GROUP page 5 March 2024 8 City of Yakima FCS GROUP Growth Plan and Annexation Study Exhibit 2A: Yakima Annexation Study Area 1 • till`s\ 4('l 1 s J !• EA 1 .i._ _ ; �. •ate ., r r....., u� ' __. r . . '.. 4' ' 11. S a1'r m /rime i0 1 J I / 1 iSv. ' I 1 y { L +r• ti • I A Y A� � t. Ill'''. • _ ti Area 2 South Airport • Includes areas located immediately south and west of the Yakima Airport. • Recent annexation has been occurring in this area with sewer and transportation infrastructure being expanded as development occurs. • This area is primarily being planned for single-family detached and attached housing. Area 3 Bachelor Creek • Includes the area southwest of the Yakima city limits. • Predominantly agricultural land with some single-family detached dwelling units in the Wiley City area. • Floodplains in the area are a significant barrier to future development. • Sewer service will require significant extension and is another barrier to future development. Area 4 West Valley •4•> FCS GROUP page 6 March 2024 9 City of Yakima FCS GROUP Growth Plan and Annexation Study • Potential annexation area bordering the city's western boundary. • Expected to accommodate planned middle housing (such as plexes and apartments) and some neighborhood-scale commercial. • Water and transportation infrastructure investments are required. Area 5 Northwest • Area located northwest of current city boundaries. • Highly desirable location for larger lot single-family detached dwellings given exceptional views across the Yakima Valley. • Transportation, wastewater and water infrastructure will all pose challenges due to relatively steep terrain and limited existing access. Exhibit 2B: Yakima Annexation Study Areas 2-5 't 'i '--....k i ° P Till�JJ n ARE 5 t s . .":. '_• A ty �i _ rtVe il _al • . AREA 4 = J '` F • '4 F R 4� L . = M "' a AREA 2"ti e, . � - • :I. p n,- 'in r R - . L a ••••> FCS GROUP page 7 March 2024 10 City of Yakima FCS GROUP Growth Plan and Annexation Study II . COMMUNITY OVERVIEW As part of this study, an overview of current demographic and socio-economic trends and forecasts were evaluated to document future needs for housing and employment land. Key findings are summarized below. POPULATION AND INCOME The City of Yakima achieved a record-high population of 98,650 people in 2023. Yakima County also attained a new record with 261,200 residents. Over the past two decades, the City of Yakima population growth has outpaced the County and State of Washington (Exhibit 3). However, since the global COVID-19 pandemic ended in 2020, population growth in Yakima slowed considerable. Exhibit 3: Population Trends, 2000-2023 LAM Change: (2000- AGR(2000- 2000 2010 2020 22 2023 2023) 20234 Washington 5,894,121 6,561,297 7,706,310 7,766,975 7,864,400 7,951,150 2,057,029 1.31% Yakima County 222,581 236,542 256,728 258,100 259,950 261,200 38,619 0.70% City of Yakima 72,294 88,630 96,968 97,810 98,200 98,650 26,356 1.36% City of Selah 6,310 6,899 8,153 8,235 8,365 8,450 2,140 1.28% City of Toppenish 8,946 8,820 8,854 8,870 8,870 8,900 (46) -0.02% Terrace Hei.hts CDP 6,447 6,679 8,917 9,114 N/A N/A N/A N/A Source:U.S. Census,American Community Survey, Washington Office of Financial Management AGR:Compound Annual Growth Rate. CDP:Census Defined Place. In 2020, the median household income in the City of Yakima was $50,673, up significantly from $39,706 in 2010. Despite the recent increase in local income levels, household incomes within the City remain well below Yakima County and the state of Washington (Exhibit 4). Exhibit 4: Income Trends, 2010-2023 Median Household Income, 2010, 2021 $90,000 $82,400 $80,000 $70,000 - $60,000 $57,244 $58,380 $50,673 $50,000 - $42,877 $39,706 $40,000 - $30,000 $20,000 $10,000 so Washington Yakima County Yakima City ■2010 ■2021 Source:U.S.Census Bureau,American Community Survey 5-Year Estimates(Table B25010) 4> FCS GROUP page 8 March 2024 11 City of Yakima FCS GROUP Growth Plan and Annexation Study Like many communities across the U.S., an increasing share of Yakima households are experiencing economic hardship as the cost of living rises faster than income levels. In recognition of the short comings associated with federal poverty statistics,the United Way now provides a new measure of economically distressed households struggling in each county in a state. This effort provides a framework,to measure households that do not earn enough to afford basic necessities, with a population segment called ALICE(Asset Limited, Income Constrained, Employed). The ALICE methodlogy takes into account the total cost of household essentials —housing, child care, food, transportation, technology, and health care, plus taxes and a 10 percent contingency. For more information, please check out: https://www.unitedforalice.org/methodology As of year 2021, 51%of the households in Yakima were either living in poverty or classified in the ALICE category,which is well above the state average of 33%and the countywide average of 46% (Exhibit 5). Exhibit 5: Poverty and ALICE Households, 2021 ALICE Households,2021 60% 51% 50% 46% 40% 33% 30% 20% 10% Washington State Yakima County City of Yakima Source:United for Alice,Alice Report.2022 EMPLOYMENT AND UNEMPLOYMENT The unemployment rate in Yakima County was 6.4% in 2022, slightly higher than the statewide average of 4.2% during the same year (Exhibit 6). Exhibit 6: Unemployment Rate, Washington and Yakima County 2006-2023 Unemployment Rate,Washington and Yakima County,2006-2023 12.0% 10.0% 8.0% • 6.0% 4.0% 2.0% 0.0% 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 — —Yakima County —Washington Source:U-S.Bureau of Labor Statistics 4) FCS GROUP page 9 March 2024 12 City of Yakima FCS GROUP Growth Plan and Annexation Study Employment within the City of Yakima has increased steadily over the last decade, from 40,147 jobs in 2010 to 47,282 jobs in 2021 (Exhibit 7). During this time frame, growth was particularly strong in agriculture (3,508 job increase from 2011 to 2021), health care (+2,824 jobs), public administration (+1,025 jobs), and retail trade (+993 jobs). Overall, the City "captured"nearly two-thirds of the net new job growth that occurred in Yakima County between 2010 and 2021 (Exhibit 8). Exhibit 7: Employment by Sector, City of Yakima, 2011-2021 Sector 2010 2021 Change AGR Ag.&Industrial 9,222 13,690 4,468 4.0% Retail 4,999 5,992 993 1.8% Service 23,880 24,529 649 0.3% Government 2,046 3,071 1,025 4.1% Total 40,147 47,282 7,135 1.6% Source:U.S.Census On the Map data. Exhibit 8: Employment by Sector, Yakima County, 2011-2021 2011 AGR Industrial 36,660 46,246 9,586 2.4% Retail 8,809 9,891 1,082 1.2% Service 41,382 43,107 1,725 0.4% Government 5,749 4,406 (1,343) -2.6% Total 92,600 103,650 11,050 1.1% Source: U.S. Census On the Map data. DEVELOPMENT OVERVIEW In 2022, there were 36,623 housing units in the City of Yakima of which 18,494 units were classified as owner-occupied, 16,336 units were renter-occupied and 1,793 units were considered as seasonal housing, vacant or for-sale. Overall vacancy rates for housing in Yakima is below 4.9% currently. Like most cities in Washington, single-family detached housing is the most prevalent housing type representing 60%of the local housing stock. The remaining housing inventory in Yakima includes townhomes and plexes (18%), multifamily (16%) and mobile homes (6%), as shown in Exhibit 9. Exhibit 9: Existing Housing Inventory, 2022, City Yakima Housing Units by Housing Type, Yakima,2022 16% •Single Family Detached •Townhomes 1 Plexes •Multifamily(5+units) 18% 60% ®Mobile home/other Source:U.S.Census Bureau,American Community Survey 5-Year Estimates(Table B25032) 4*:) FCS GROUP page 10 March 2024 13 City of Yakima FCS GROUP Growth Plan and Annexation Study Building permit activity in Yakima over the 2018-2022 timeframe indicates strong market support for the development of additional multifamily (apartments), which accounted for over half(53%) of all new housing units that were constructed in the City (Exhibit 10). Exhibit 10: Dwelling Units Added by Category, 2018-2022, City Yakima Total Average Annual Single Family 648 162 Plexes 260 65 Multifamily 1,077 269 Mobile Homes 34 9 Total 2,019 505 Source: City of Yakima Yakima home values have increased measurably in recent years. As indicated in Exhibit 11, median home values in Yakima increased to $329,195 in December 2023, up 2.3% annually over the past two years. Other cities in the region have experienced similar housing cost increases. Exhibit 11: Home Value Index in Select Markets Annual Avg. Dec-21 Dec-22 Dec-23 Growth Yakima $307,150 $321,739 $329,195 2.3% Ellensburg $404,504 $436,419 $442,247 3.0% Wenatchee $428,973 $448,884 $449,759 1.6% Toppenish $227,249 $244,433 $249,245 3.1% Source:Zillow.com;analysis by FCS. COMMERCIAL AND INDUSTRIAL MARKET POTENTIAL Third quarter 2023 real estate brokerage reports for the Yakima Market Area indicated that building vacancy rates have remained very low at 4.6% for industrial buildings, and 2.6%for office in the region was vacant'. As shown above in Exhibit 7, significant growth has been occurring in the industrial and retail sectors in Yakima over the past decade and longer. Based on the trends in job growth, FCS GROUP prepared two job growth forecast scenarios that can be used to forecast employment land needs in Yakima over the next ten years. Job growth forecast Scenario 1 assumes an extrapolation of the historic rates of job growth with an average employment density factor of 20 jobs per acre for industrial/other uses and 40 jobs per acre for commercial and office uses. Under this growth forecast, Yakima is projected to require 215 acres for industrial uses and 18 acres for commercial and office uses every ten years (Exhibit 12). ' Office and Industrial Market Reports prepared by the Remlinger Group using Co Star data. •:;> FCS GROUP page 11 March 2024 14 City of Yakima FCS GROUP Growth Plan and Annexation Study Exhibit 12: Yakima Employment Land Need Assumptions, Scenario 1 Historic Jobs per Annual Job Land Need Acres every Sector Acre Growth Acres per yr 10 yrs Industrial 20 429 21.5 215 Commercial/Office 40 73 1.8 18 Job growth forecast Scenario 2 also assumes the same level of job growth as Scenario 1, but estimates the employment land needs based on building square footage. As shown below in Exhibit 13,the number of jobs per 1,000 square feet of building floor area range: industrial uses @ 1.5 jobs per 1,000 SF; commercial and office uses @ 3 jobs per 1,000 SF. Using a floor-area ratio of 0.2 for industrial and 0.35 for commercial, Yakima would require approximately 328 acres of industrial and 16 acres of commercial land over a ten-year period. Exhibit 13: Yakima Employment Land Need Assumptions, Scenario 2 Historic Annual Land Need Jobs Per Annual Job Building SF Floor-Area Land Need every 10 yrs Sector 1000 SF Growth Needs Ratio Acres per Yr (Acres) Industrial 1.5 429 286,133 0.2 32.8 328 Commercial/Office 3.0 73 24,367 0.35 1.6 16 4) FCS GROUP page 12 March 2024 15 City of Yakima FCS GROUP Growth Plan and Annexation Study III . SUBAREA DEVELOPMENT POTENTIAL BUILDABLE LAND INVENTORY As part of this study, an estimate of the buildable land inventory (BLI) within Yakima's Growth Areas was created to determine the amount of land available for housing and employment. The BLI analysis uses the most current Geographic Information Systems (GIS) data provided by the City and County of Yakima. The objective of the BLI is to determine the amount of developable land available for future residential housing and economic development within the UGB. A complete description of the BLI Methodology is provided in Appendix A. The BLI analysis is used to calculate the gross acres, developed acres, environmentally constrained acres, and net buildable acres within each area. As shown in Exhibit 14,the findings indicate that the total net buildable acres ranges from 139 acres in Area 2—South Airport to 1,293 acres in Area 1— Terrace Heights. BLI findings are also utilized to depict potential new development for housing and jobs within each study area. Exhibit 14: Yakima Employment Land Need Assumptions, Scenario 2 Net Net Net Gross Buildable Buildable Buildable Total Net Total Developed Constrain- Buildable Commerci Industrial Residentia Buildable ubarea Acres Acres ed Acres Acres al Acres Acres I Acres Acres 1 Terrace Heights 4,510 2,022 1,024 1,464 57 267 969 1,293 2 South Airport 553 143 83 326 - 74 65 139 3 Bachelor Creek 1,084 385 218 481 - - 258 258 4 West Valley 2,056 926 164 966 48 - 848 896 5 Northwest 1,088 379 443 266 - - 317 317 Total 9,291 3,856 1,932 3,504 105 341 2,457 2,903 *includes buildable land in tax lots of 5 or more acres, excluding constrained acres Source: Yakima Growth Study, GIS analysis by 3J Consulting and FCS GROUP, Dec. 2023. STUDY AREA OPPORTUNITIES AND CONSTRAINTS The following section highlights unique existing characteristics of each annexation area being considered. Area 1 Terrace Heights Exhibit 15 below shows an area map of Terrace Heights. 4> FCS GROUP page 13 March 2024 16 City of Yakima FCS GROUP Growth Plan and Annexation Study Exhibit 15: Terrace Heights Area Map • •� f� C U - s• i A • As shown in Exhibit 16,the Terrace Heights area is the largest of the study areas with 4,510 acres and has the most significant levels of existing development. The Terrace Heights area is home to 8,735 full-time residents, 2,642 workers, and includes nearly $1.3 billion in existing assessed property and improvement value according to the Yakima County Assessor (2023). Exhibit 16: Terrace Heights Existing Conditions Area 1 -Terrace Hei hts Assessed Value $1,281,596,250 Jobs 2,642 Population 8,735 Median HH Income $70,477 Median Home Value $321,341 Median Age 43,6 Source: ESRI Business Analyst Online, Yakima County Assessor The Terrace Heights area has significant future development potential. As shown below in Exhibit 17, it is estimated that vacant buildable land in the Terrace Heights area could accommodate 2,713 new housing units as well as 2,373 additional jobs, including 1,495 industrial jobs and 878 service jobs. 4> FCS GROUP page 14 March 2024 17 City of Yakima FCS GROUP Growth Plan and Annexation Study Exhibit 17: Terrace Heights Development Potential Subarea 1: Terrace Heights Housing Units Potential New Dwelling Unit 2,713 Job. Potential New Service Jobs 878 Potential New Industrial/Other Jobs 1,495 Potential Total Jobs 2,373 Source: Yakima Growth Study, GIS analysis by 3J Consulting and FCS GROUP Area 1 Infrastructure Needs • Water: The area is predominantly served by the Yakima County-owned Terrace Heights Water System which serves much of the employment land in the area along with the eastern residential areas. The remainder of Terrace Heights is served by approximately 30 separate neighborhood- scale water utilities. • Sewer: Most of the area is served by the Terrace Heights Sewer District with some parcels outside the service area served by in-site systems. • Roads and Streets: Most streets are maintained by the County. The Terrace Heights transportation network is being planned and designed to meet standards set by the County's Horizon 2040 Plan. Congestion along the Yakima Avenue/Terrace Heights Drive corridor has triggered Yakima County's concurrency requirements, which limits new development permits along this important roadway corridor. Transportation infrastructure investment is needed, particularly replacement of a bridge crossing the Yakima River. Area 2 South Airport Exhibit 18 depicts a map of the South Airport area. Exhibit 18: South Airport Area Map 14,0 w.4. ens I..ww4.1MA1F•1• •wll Pb, c.,., • Area 2 R•d`tii. • 4> FCS GROUP page 15 March 2024 18 City of Yakima FCS GROUP Growth Plan and Annexation Study At 553 total acres,the South Airport area is the smallest of the five annexation areas under consideration. This area is home to 945 full-time residents, 151 workers, and includes approximately $107.5 million in existing assessed value (Exhibit 19). Exhibit 19: South Airport Existing Conditions Area 2-South Airport to Ahtanum Road Assessed Value $107,493,400 Jobs 151 Population 945 Median HH Income $96,197 Median Home Value $326,374 Median Age 46.4 Source: ESRI Business Analyst Online,Yakima County Assessor As shown below in Exhibit 20, it is estimated that the South Airport area could accommodate 181 additional housing units as well as 414 added jobs in the future. Exhibit 20: South Airport Development Potential Subarea 2: South Air•ort Housing Units Potential New Dwelling Units 181 Jobs Potential New Service Jobs - Potential New Industrial/Other Jobs 414 Potential Total Jobs 414 Source: Yakima Growth Study, GIS analysis by 3J Consulting and FCS GROUP Area 2 Infrastructure Needs • Water: The area is currently within the Nob Hill Water District. However,the distribution system is mostly confined to a mainline along Ahtanum Road. Water service in the South Airport area will require expansion of the distribution system. • Sewer: The vast majority of this area is on septic systems. The City of Yakima has several sewer lines that run adjacent to the area including 12"pipes serving the Sozo Sports Complex and a line running along Spring Creek Road. As with water, serving the South Airport area will require expansion of the wastewater system. • Roads and Streets: Streets in the area are maintained by the County, with two transportation primary east/west arterials, including Spring Creek Road to the north and Ahtanum Road to the south. 52"d Avenue provides the primary north/south arterial access. Expansions to the transportation network will likely include local streets built along with development. Area 3 Bachelor Creek Exhibit 20 below shows an area map of Bachelor Creek. •4•> FCS GROUP page 16 March 2024 19 City of Yakima FCS GROUP Growth Plan and Annexation Study Exhibit 20: Bachelor Creek Area Map ',chew RI _cc aeuu V1 MT.1 Pl 1.1 of a,.1TV I Area 3 J j The 1,084-acre Bachelor Creek/Wiley City area is located west of the Airport area and SW of current city limits. This area is home to 1,429 residents, 282 workers and includes $189.5 million in existing assessed value (Exhibit 21). Exhibit 21: Bachelor Creek Existing Conditions Area 3-Bachelor Creek, Spring Creek to Wiley City Assessed Value $189,504,450 Jobs 282 Population 1,429 Median HH Income $74,380 Median Home Value $367,917 Median Age 40.9 Source: ESRI Business Analyst Online,Yakima County Assessor As shown below in Exhibit 22, all of the buildable land in the Bachelor Creek area is planned for residential and the area could add approximately 722 new dwelling units in the future. Exhibit 22: Bachelor Creek Development Potential Subarea 3: Bachelor Creek Housing Units Potential New Dwellin Units 722 Jobs Potential New Service Jobs - Potential New Industrial/Other Jobs - Potential Total Jobs - Source: Yakima Growth Study, GIS analysis by 3J Consulting and FCS GROUP 4> FCS GROUP page 17 March 2024 20 City of Yakima FCS GROUP Growth Plan and Annexation Study Area 3 Infrastructure Needs • Water: As with the South Airport area, Bachelor Creek is currently within the Nob Hill Water District. The Bachelor Creek area has slightly more distribution in place currently, especially in the Wiley City area and Ahtanum areas. • Sewer: Like the South Airport area, Bachelor Creek residents are mostly on septic systems. Existing City of Yakima sewer lines run along Ahtanum Road and the 74t'and 78t'Avenue corridors. Servicing the area will require a significant extension along Ahtanum Road. • Roads and Streets: The eastern portion of the Bachelor Creek area are served by Ahtanum and Occidental Roads as well as 74t'' and 78t'Avenues. Expansions to the transportation network of eastern Bachelor Creek will likely include local streets built along with development. The Wiley City area is connected by Ahtanum Road and is relatively well built out in terms of transportation infrastructure. Area 4 West Valley Exhibit 23 shows an area map of West Valley. Exhibit 23: West Valley Area Map r L Area 4 '``r -Z fj J 4> FCS GROUP page 18 March 2024 21 City of Yakima FCS GROUP Growth Plan and Annexation Study Situated along Yakima western city limits,the 2,056-acre West Valley area is the second largest of the annexation areas under consideration. The West Valley area is home to 1,352 residents, 497 workers and includes $329.8 million in assessed property value (Exhibit 24). Exhibit 24: West Valley Existing Conditions Area 4-West Valley to Dazet and Estes Roads Assessed Value $329,820,980 Jobs 497 Population 1,352 Median HH Income $79,308 Median Home Value $365,269 Median Age 40.1 Source: ESRI Business Analyst Online,Yakima County Assessor The West Valley area includes significant amounts of vacant and underutilized land, along with several parcels designated for institutional use. As shown below in Exhibit 25, it is estimated that buildable land in the West Valley area could accommodate 2,375 new housing units as well as 739 additional jobs. Exhibit 25: West Valley Development Potential Subarea 4:West Valle Housing Units 11 Potential New Dwelling Units 2,375 Jobs Potential New Service Jobs 739 Potential New Industrial/Other Jobs - Potential Total Jobs 739 Source: Yakima Growth Study, GIS analysis by 3J Consulting and FCS GROUP Area 4 Infrastructure Needs • Water: This area is also within the Nob Hill Water District. The distribution network in the West Valley area is limited to major arterials (Tieton Dr.,Wide Hollow Rd., Summitview Ave.). • Sewer: Most of the area is on septic systems apart from the school buildings along Zier Road. City sewer infrastructure is in place leading to the boundary of the West Valley area but mainlines would have to be extended to serve future development. • Roads and Streets: Several backbone north/south and east/west arterials are present in the West Valley area with the transportation network most complete in and around recent subdivisions. 4*:) FCS GROUP page 19 March 2024 22 City of Yakima FCS GROUP Growth Plan and Annexation Study Area 5 Northwest Exhibit 26 shows a map of the Northwest subarea. Exhibit 26: Northwest Area Map „ , Liotot W _ v��• • �4ya • Area 5 / } it 1 a 4MM r0. - nm.. r�.r MIY ' ,S..rn 1.•�Mr The 1,088-acre Northwest area is located to the northwest of the Yakima city limits. The Northwest area is home to 809 residents, 177 workers and includes nearly $200 million in assessed value (Exhibit 27). Exhibit 27: Northwest Existing Conditions Area 5-Northwest Scenic Road to Cowiche Creek Assessed Value $199,986,650 Jobs 177 Population 809 Median HH Income $104,962 Median Home Value $386,765 Median Age 49.3 Source: ESRI Business Analyst Online,Yakima County Assessor The Northwest area includes significant vacant and underutilized land. As shown below in Exhibit 28, it is estimated that the area could potentially add 888 new housing units. All remaining buildable land is planned for residential development. Exhibit 28: Northwest Development Potential Subarea 5: Northwest Housing Units Potential New Dwelling Units 888 Jobs Potential New Service Jobs - Potential New Industrial/Other Jobs - Potential Total Jobs - Source: Yakima Growth Study, GIS analysis by 3J Consulting and FCS GROUP 4> FCS GROUP page 20 March 2024 23 City of Yakima FCS GROUP Growth Plan and Annexation Study Area 5 Infrastructure Needs • Water: Most of the Northwest area is served by the Nob Hill Water District apart from a small western portion which is served by the City of Yakima. As with other annexation areas, water mains are present along arterials in the area but would have to be developed further to meet the demands of growth. • Sewer: Most of the Northwest area is likely on septic systems with the western portion of the potential annexation area on City of Yakima sewer service. Significant transmission infrastructure will be needed to serve this area which is likely to be complicated by the topography of the area. • Roads and Streets: Due to the topography of the Northwest area arterial roadways are sparce and mostly nonlinear. Development of additional roadway capacity will be necessary to meet the demands of development with an added capital cost attributed to the need for extraordinary geotechnical work and the need for retaining walls for land stabilization in areas with steep topography. INFRASTRUCTURE AND SERVICEABILITY As part of this study, FCS GROUP reviewed public facility master plans, and met with City of Yakima community development, finance and public works staff and received input from the Nob Hill Water District. This input was imperative for understanding the relative serviceability of each subarea with respect to the general cost of providing adequate water, sewer and transportation capacity to accommodate the current and future development within each subarea. With an understanding of the relative public facility capital and infrastructure costs for each area and the potential community benefits (measured by existing and potential assessed valuation, housing and employment) a relative scoring system was used to rank each subarea. As shown in Exhibit 29,the relative serviceability in rank order is as follows: • Area 1—Terrace Heights (Highest overall serviceability score) • Area 4—West (second Highest serviceability score) • Area 2—South Airport &Area 3—Southwest (tied for third Highest serviceability score) • Area 5—Northwest (Lowest overall serviceability score) •:> FCS GROUP page 21 March 2024 24 City of Yakima FCS GROUP Growth Plan and Annexation Study Exhibit 29: Infrastructure and Public Facility Serviceability Comparison Relative Infrastructure Serviceability& Growth Potential Area 1 Area 2 Area 3 Area 4 Area 5 Facility Type m Overall Public Facility Serviceability I Potential AV Added with Annexation Potential Pop Added with Annexation Future Housing Opportunities Future Job Opportunities Total Relative Score(Avg.) Avg. Ranking 1.2 3.2 3.2 2.0 3.6 LEGEND Highest Relative Change or Impact to City Moderate Change or Impact to City Lowest Relative Change or Impact to City •4•> FCS GROUP page 22 March 2024 25 City of Yakima FCS GROUP Growth Plan and Annexation Study IV. FISCAL IMPACT ASSESSMENT This section evaluates the potential annual or ongoing fiscal impact that annexation areas could have on the City of Yakima General Fund. METHODOLOGY To evaluate annual fiscal costs and benefits of serving local residents and daytime employment/visitation within the City, FCS GROUP analyzed City of Yakima budget history (FY 2014-2024). The focus of this analysis is on General Government operating revenues and expenditures, which tend to increase or decrease with changes in population and employment within the City of Yakima. The approach used to conduct this analysis entailed the following steps: 1. Compile annual revenue and expense data from prior City of Yakima audited financial statements and current budget year for selected line items contained in the General Government Fund for period between 2014 and 2024 (see Exhibit 30 for a list of the budget line items included in this analysis). 2. Prepare 3-year moving average to smooth out anomalies in the City's budget history. This approach tends to "dampen" extraordinary impacts created by recessions and special events, such as the Global Covid-19 Pandemic. 3. Compile historic trends and current estimates of resident population and employment (at place of work jobs) within the City for the period extending from 2014 to 2023, using estimates from the U.S. Census Revenue Line Items Expense Line Items Bureau and the Washington 311 Property Tax 100 Salaries&Wages 313 Retail Sales and Use Tax zoo Personnel Benefits Office of Employment Security. 313 Criminal Justice Tax 300 Supplies 4. Calculate the 3-year moving 314 Water Utility Tax 400 Other Services and Charges average of historic annual 314 Wastewater Utility Tax General Fund expenses and 314 Refuse Utility Tax revenues for the City; focusing 314 Stormwater Utility Tax on the line items that most 316 Business Licenses 316 Electric Utility Tax affected by changes in population 316 Private Water Frchs/Util Tax or jobs. 316 Gas Franchise/Utility Tax 5. Identify 3-year moving average 316 Private Garbage Utility Tax depicting City General Fund 316 Cable TV Utility Tax 316 Cable TV Franchise Fees expense and revenue estimates 316 Cellular Utility Tax per job (at place of work 316 Telephone Utility Tax employment) within the City. 317 BEET 6. Convert nominal dollars for all 317 Leasehold Excise Tax budget years to real 2024 dollar 317 Gambling Tax 317 Assessments amounts using annual U.S. 317 Transportation Benefit District TBD Consumer Price Index data from Exhibit 30: General Fund Categories Included in Fiscal Impact Assessment I — 4****) FCS GROUP page 23 March 2024 26 City of Yakima FCS GROUP Growth Plan and Annexation Study the U.S. Bureau of Labor Statistics. 7. Translate General Fund revenue and expense impacts per capita and per job into expected impacts per net developed acre of residential land (by housing type) and per acre of developed employment land (for commercial and industrial buildings). In addition to measuring the relative impact that new residents or workers would likely place on the City's General Fund,this annexation analysis also considers the relative impact annexation areas would likely have on property tax revenues and sales and use taxes, as described below. Fiscal Impact Drivers To quantify the relative fiscal impact of each annexation study area it is necessary to understand the relationship between the main drivers of fiscal spending: population, housing and employment and their impacts on annual General Government revenues and expenditures. For analysis purposes, FCS relied upon data provided by the Washington Office of Financial Management(OFM) for historical population estimates for the City of Yakima. Historic employment estimates for the City were obtained using U.S. Census, On-the-Map data. Current population and employment estimates and 3- year projections were obtained using ESRI Business Analyst data (Exhibit 31). Exhibit 31: Population and Employment Estimates and Forecasts Population and Employment Trends, City of Yakima Resident Population Employment(by Place of Work) Year Estimate Year Estimate 2010 91,196 2010 40,882 2011 91,892 2011 40,147 2012 92,317 2012 40,873 2013 93,093 2013 42,646 2014 93,706 2014 44,046 2015 93,927 2015 45,259 2016 94,217 2016 46,008 2017 95,020 2017 47,288 2018 95,455 2018 49,111 2019 95,771 2019 47,341 2020 96,968 2020 45,442 2021 97,810 2021 47,282 2022 98,200 Source: Census On the Map 2023 98,650 Source: Washington OFM Year Emp. Forecast 2022 Est. 47,776 Year Pop. Forecast 2023 Est. 48,276 2024 Est. 99,257 2024 Est. 48,790 2025 Proj. 99,868 2025 Proj. 49,308 2026 Proj. 100,483 2026 Proj. 49,832 2027 Proj. 101,102 2027 Proj. 50,362 Notes: Forecast values assume historic CAGR. CAGR= compound annual growth rate. Historic 14-year CAGR: Pop. Historic 12-year CAGR: Employment 0.62% populuation 1.06% employment _ Sources: Washington Office of Financial Management, U.S. Census, ESRI(projections). The population and employment estimates shown above along with 3-year moving averages depicting General Government spending and revenues have been utilized to quantify key fiscal impact metrics that are used in this study. +.> FCS GROUP page 24 March 2024 27 City of Yakima FCS GROUP Growth Plan and Annexation Study Kay fiscal impact measures used in this analysis include: • Annual General Government expenditures and revenues per capita • Annual General Government expenditures and revenues per job (average) • Annual General Government expenditures and revenues per retail job GENERAL GOVERNMENT FISCAL IMPACTS The analysis of the average annual fiscal impact on the City of Yakima General Government fund is summarized below in Exhibit 32. After converting the 3-year moving average amounts from nominal dollars into constant 2024 dollars, it is estimated that each net new resident in the City generates approximately $2,424 in revenues and $1,859 in annual expenses, with a net impact of $575 per person. The employment impact analysis indicates that there is higher net fiscal benefit associated with jobs in the City, with an overall net fiscal benefit of$890 per year to the General Fund. Commercial retail jobs generate an even higher overall net fiscal benefit to the General Fund of approximately $1,532 per job. Exhibit 32: Avg. Annual General Fund Impact Per Pop. &Per Job (2024$) Average Annual Impact FY 2014-2023 GF Revenue GF Expense Net GF Impact Gen. Fund Impact Per Pop. $ 2,434 $ (1,859) $ 575 Gen. Fund Impact Per Avg.Job $ 5,117 $ (4,227) $ 890 Gen. Fund Impact Per Retail Job $ 5,759 $ (4,227) $ 1,532 As new areas are annexed into the City (typically through property-owner petitions)there are generally two types of ongoing annual fiscal impacts on the General Fund: 1. Short-term impact: reflects the addition of assessed value from current development to the calculation of local mil rates and/or changes in property tax revenue. Depending upon the number of people and businesses in the annexation area, there may also be some change in the City/County allocation of miscellaneous tax revenues from sales and use tax collections, state shared taxes (i.e., fuel tax, liquor tax, etc.), utility franchise tax revenue, etc. 2. Long-term impact: if an annexation area develops new housing or attracts new businesses there will be an additional fiscal impact that will increase General Government revenues and expenditures as local services (such City administration, planning,public facility operations, police service, etc.) are extended into that area. It should be noted that this fiscal impact section focuses only on ongoing annual General Government revenues and expenditures and does not account for one-time capital facility investments that are unique to each area. For a discussion on infrastructure serviceability and relative capital costs please refer to the previous chapter. •:;> FCS GROUP page 25 March 2024 28 City of Yakima FCS GROUP Growth Plan and Annexation Study Short-Term Fiscal Impacts The factors that primarily drive short-term fiscal impacts for each annexation study area include existing population, existing housing (dwelling units), retail and non-retail jobs, and existing taxable assessed value (Exhibit 33). Exhibit 33: Current Fiscal Impact Drivers by Annexation Area Daytime Current Pop- Dwelling Total Retail Resident Daytime Taxable AV Subarea ulation Units Jobs Jobs Pop. Emp. ($M) 1 Terrace Heights 8,735 3,777 2,578 377 4,317 2,578 $ 1,082.2 2 South Airport 945 356 162 82 451 162 $ 97.0 3 Bachelor Creek 1,429 572 273 99 812 273 $ 151.0 4 West Valley 1,352 499 884 47 777 884 $ 280.4 5 Northwest 809 321 82 34 487 82 $ 170.0 Citywide 98,579 37,192 44,034 5,328 $ 11,665.1 Notes: 1.Derived from ESRI Business Analyst,and Washingon Dept. of Revenue data. 2.Analysis reflects current average retail sales per job in City. 3.Analysis reflects current Sales and Use Tax for City(0.018%) Compiled by FCS GROUP. The precise impact of annexations on property tax revenue is difficult to predict given Washington State constitutional limits on the amount of General Fund revenue local jurisdictions can assess (1% annual limitation on existing AV plus the value of new construction). Hence,the initial result of annexations may result in a slight increase in General Fund Revenue (of 1%) with a concomitant downward pressure on local mil rates for most taxable properties within the City boundary. The relative fiscal impact from the potential increase in taxable values for each annexation area is shown in Exhibit 34. In the analysis shown, for each $100 million in taxable AV,there is a potential equivalent impact of either a $190,000 increase in General Fund property tax revenues or a slight decrease in the citywide property tax mil rate from approximately 1.85527 to 1.8395 per $1,000 AV. 4> FCS GROUP page 26 March 2024 29 City of Yakima FCS GROUP Growth Plan and Annexation Study Exhibit 34: Property Tax Impact for Annexation Subareas Annual City Land RMV Imp.RMV Total RMV Est.Taxable Prop.Tax Subarea ($M) ($M) ($M) AV($M)z Impact 3 1 Terrace Heights $ 247.0 $ 1,026.2 $ 1,273.2 $ 1,082.2 $ 2,010,000 2 South Airport $ 31.5 $ 82.6 $ 114.1 $ 97.0 $ 180,000 3 Bachelor Creek $ 37.9 $ 139.8 $ 177.7 $ 151.0 $ 280,000 4 West Valley $ 61.5 $ 268.4 $ 329.9 $ 280.4 $ 520,000 5 Northwest $ 43.0 $ 157.0 $ 200.0 $ 170.0 $ 320,000 Notes: 1.Derived from Yakima County Assessor Records,Dec. 2023. 2.Adjusted downward by 15%to account for tax exempt uses. 3.Assumes 2024 mil rate of.. 1.855272 per$1,000 AV. RMV=real market value per Yakima County Assessor,2024. Within the study areas there is already an existing amount of commercial retail development that would generate local sales and use tax revenues after the first year of annexation. Terrace Heights has the most significant level of current retail sales ($13.4 million) which if taxed at current City rates (0.18%) would generate approximately $242,000 annually for the City (Exhibit 35). Exhibit 35: Sales Tax Impact for Annexation Subareas Existing Retail Current Annual Annual City Sales Subarea Jobs 1 Retail Sales &Use Tax Impact 2 1 Terrace Heights 377 $ 13,440,000 $ 242,000 2 South Airport 82 $ 2,940,000 $ 53,000 3 Bachelor Creek 99 $ 3,560,000 $ 64,000 4 West Valley 47 $ 1,670,000 $ 30,000 5 Northwest 34 $ 1,220,000 $ 22,000 Notes: 1.Derived from ESRI Business Analyst,and Washingon Dept.of Revenue data. 2.Analysis reflects current average retail sales per job in City. 3.Analysis reflects current Sales and Use Tax for City(0.018%) The estimated annual fiscal impacts to the City of Yakima in the short-term are summarized in Exhibit 36. This analysis is provided for comparative purposes only and assumes that the entirety of each study area is annexed in the City. Based on current levels of development,the findings indicate that the annual fiscal impact on the General Fund ranges from $864 per net acre of developed land in Area 4-West Valley to a high of$3,136 per acre in Area 2-South Airport. The findings also indicate that the relative fiscal impact per gross acre ranges from $377 in Area 5: Northwest to $907 in Area 1-Terrace Heights. 4*:) FCS GROUP page 27 March 2024 30 City of Yakima FCS GROUP Growth Plan and Annexation Study Exhibit 36: Fiscal Impact Based on Current Development = Potential Annual Net Gen.Fund Impact Annual Fiscal Annual Based on Total Net Impact per Fiscal Based on Current Fiscal Impact Gross Developed Developed Impact per Subarea Current Pop 1 Jobs 1 (weighted)2 Acres' Acres' Acre Gross Acre 1 Terrace Heights $ 5,023,449 $2,537,039 $ 4,090,000 4,510 2,022 $ 2,023 $ 907 2 South Airport $ 543,464 $ 196,861 $ 450,000 553 143 $ 3,136 $ 814 3 Bachelor Creek $ 821,810 $ 306,590 $ 690,000 1,084 385 $ 1,792 $ 637 4 West Valley $ 777,528 $ 817,135 $ 800,000 2,056 926 $ 864 $ 389 5 Northwest $ 465,251 $ 94,827 $ 410,000 1,088 379 $ 1,082 $ 377 Notes: 1.Derived from prior tables. 2.Analysis reflects weighted average based on total daytime pop and jobs in each area. 3.Analysis reflects Buildable Land Inventory findings,Dec.2023. Compiled by FCS GROUP. Long-Term Fiscal Impacts The long-term fiscal impact analysis provides a relative comparison based on the assumption that the current vacant and part-vacant buildable land (with no environmental constraints) is developed by the end of the study time frame. The baseline scenario assumes an average housing and job density levels discussed previously in this report. The findings shown in Exhibit 37 indicate that the potential net new fiscal impact per acre of buildable land area ranges from $1,315 per buildable acre in Area 1-Terrace Heights to $1,660/acre in Area 2-South Airport. Exhibit 37: Fiscal Impact Based on Future Net New Development •. -1 .• _,, • ►- -, i. u.. (, -) Annual Fiscal Based on Based on Total Net Impact per Future Net Future Jobs Fiscal Impact Buildable Buildable Subarea New Pop 1 (weighted)2 Acres s Acre 1 Terrace Heights $ 1,560,346 $2,112,509 $ 1,700,000 1,293 $ 1,315 2 South Airport $ 103,909 $ 368,886 $ 230,000 139 $ 1,660 3 Bachelor Creek $ 415,448 $ - $ 420,000 258 $ 1,628 4 West Valley $ 1,365,993 $ 658,056 $ 1,370,000 896 $ 1,529 5 Northwest $ 510,454 $ - $ 510,454 317 $ 1,610 Notes: 1.Derived from prior tables,impacts reflect buildout of unconstrained vacant land in tax lots over 5 acres. 2.Analysis reflects weighted average based on total daytime pop and jobs in each area. 3.Analysis reflects Buildable Land Inventory findings,Dec.2023. Compiled by FCS GROUP. Overall Fiscal Impacts The overall fiscal impact analysis combines that short-term impacts with the long-term impacts to provide a comparison of the potential fiscal impact each area could have on the City in Year 20 or after each area achieves full development of the buildable acres shown in the prior table. •4•> FCS GROUP page 28 March 2024 31 City of Yakima FCS GROUP Growth Plan and Annexation Study The findings indicate that the relative fiscal impact per gross acre ranges from $846 in Area 5- Northwest to $1,284 in Area 1—Terrace Heights (Table 38). Exhibit 38: Annual Fiscal Impact Based on Current&Future Development Potential Annual Net Gen.Fund Impact(in Future) Annual Fiscal Annual Current Net Future Net Total Developed& Impact per Fiscal Fiscal Impact Fiscal Potential Net Gross Buildable Buildable Impact per `' 2 Impact Fiscal Impact Acres s Acres s Acre Gross Acre 1 Terrace Heights $ 4,090,000 $1,700,000 $ 5,790,000 4,510 3,315 $ 1,747 $ 1,284 2 South Airport $ 450,000 $ 230,000 $ 680,000 553 282 $ 2,411 $ 1,230 3 Bachelor Creek $ 690,000 $ 420,000 $ 1,110,000 1,084 643 $ 1,726 $ 1,024 4 West Valley $ 800,000 $1,370,000 $ 2,170,000 2,056 1,823 $ 1,191 $ 1,055 5 Northwest $ 410,000 $ 510,454 $ 920,454 1,088 696 $ 1,322 $ 846 Notes: 1.Derived from prior tables,impacts reflect buildout of unconstrained vacant land in tax lots over 5 acres. 2.Analysis reflects weighted average based on total daytime pop and jobs in each area. 3.Analysis reflects Buildable Land Inventory findings,Dec.2023. Compiled by FCS GROUP. A sensitivity analysis was conducted to determine how housing types can influence fiscal impacts. In general, as housing density increases, fiscal impacts are more concentrated and the costs of providing City services such as roadway maintenance can be minimized. This fiscal impact sensitivity analysis assumes that the City establishes a long-term "annual net fiscal impact target of$2,400 per buildable acre" for each study area. The findings indicate that housing density of future development would need to increase in most areas to achieve that target. As shown below, the minimum required density of future housing development to achieve the $2,400 target within each area would need to range from a low of 4 dwellings per acre in Area 2—South Airport to a high of 11.6 dwellings per acre in Area 1—Terrace Heights (Exhibit 39). Exhibit 39: Minimum Housing Density on New Development to Achieve $2,400 Annual Net Fiscal Impact per Buildable Area DUs per Subarea Acre 1 Terrace Heights 11.6 2 South Airport 4.0 3 Bachelor Creek 8.3 4 West Valley 10.5 5 Northwest 9.9 4> FCS GROUP page 29 March 2024 32 City of Yakima FCS GROUP Growth Plan and Annexation Study SUMMARY & POLICY CONSIDERATIONS The Yakima Annexation Growth Study provides a relative comparison of the costs and benefits of serving potential areas outside the current City limits. This analysis considers community growth opportunities for housing and employment over the long-term. The study included an assessment of existing development conditions and future buildable lands for each study area. A baseline growth forecast for housing and employment in each area is provided to ascertain the relative fiscal impacts on General Government revenues and expenditures. These findings also consider the near-term infrastructure serviceability and relative capital costs for each area. Area 1—Terrace Heights and Area 4—West Valley received high highest infrastructure and public facility serviceability rankings. The findings indicate that there is likely an overall positive fiscal impact on the City's General Fund for each annexation area. Based on current development conditions, land use regulations and buildable lands,the most positive annual General Fund fiscal impacts per acre are expected to be generated within Area 1—Terrace Heights and Area 2—South Airport. However, local policies that encourage a mix of housing types (such as townhomes and apartments) can measurably enhance the overall fiscal benefit that can be achieved in other annexation areas. The methodology for this study may be applied to specific annexation requests in the future. As new opportunities are advanced it is recommended that the City of Yakima evaluate the expected fiscal impacts on the General Fund and also consider specific capital investment requirements and sources of capital funding. Any potential funding gaps will then need to be addressed through new funding techniques or development agreements to achieve positive fiscal sustainability. 4> FCS GROUP page 30 March 2024 33 City of Yakima FCS GROUP Growth Plan and Annexation Study APPENDIX A: BUILDABLE LAND INVENTORY METHODOLOGY YAKIMA BUILDABLE LAND INVENTORY METHODOLOGY An estimate of buildable land inventory (BLI) within Yakima's Growth Annexation Areas has been created to determine the amount of land available for housing and employment. The BLI analysis uses the most current Geographic Information Systems (GIS) data provided by the City and County of Yakima. BUILDABLE LAND INVENTORY METHODOLOGY The objective of the BLI is to determine the amount of developable land available for future residential housing and economic development within the UGB. The steps taken to perform this analysis are as follows: 1. Calculate gross acres by zoning designation, including classifications for fully vacant and partially-vacant & underutilized parcels. The parcel data was provided by the City of Yakima. Further City staff reviewed vacancy assumptions to provide a level of quality assurance. 2. Calculate gross buildable acres by zoning designation by subtracting land that is constrained from future development, such as existing public right-of-way, parks and open space, steep slopes, and floodplains. 3. Calculate net buildable acres by zone designation, by subtracting future public facilities such as roads, schools and parks from gross buildable acres. The detailed steps used to create the land inventory are described below. Residential and Economic Land Base The residential land base reflects current Yakima zoning designations. Properties that are within the residential land base include the following base zone classifications: Residential Zoning Categories • SR Suburban Residential • R-1 Single Family • R-2 Two Family • R-3 Multi-Family • B-1 Professional Business District • B-2 Professional Business District • GC General Commercial District The economic land base reflects current Yakima zoning categories. Properties that are within the economic land base include the following base zone classifications: Economic Zoning Categories • B-1 Professional Business District • B-2 Professional Business District •4•> FCS GROUP page 31 March 2024 34 City of Yakima FCS GROUP Growth Plan and Annexation Study • GC General Commercial District • SCC Small Convenience Center District • M-1 Light Industrial District The City has multiple overlay districts. Some of the land is within these overlays and can affect future development. Overlay Districts • ASO Airport Safety Overlay with multiple zones • FO Floodplain Overlay • GO Greenway Overlay These classifications have been kept consistent throughout the analysis. Yakima Buildable Land Categories Vacant land: Properties with no structures or have buildings with little value. For purpose of the BLI, tax lots with improvement value less than $10,000 with a lot size of at least 3,000 sq.ft. are considered vacant. In addition, lots with the land use code 81 (Agricultural Not Current Use), 83 (Current use Agricultural), 91 (Undeveloped Land) and 99 (Other Undeveloped Land) are assumed to be vacant. These lands were also subjected to review using satellite imagery via Google Earth; and if the land is in a committed use such as a parking lot, an assessment has been made to determine if it is to be classified as vacant, part vacant or developed. Partially vacant land: Properties that are occupied by a use (e.g., a home or building structure with value over $10,000) but have enough land to be subdivided without the need for rezoning. This determination is made using tax assessor records and satellite imagery. For Single Family lots, it is assumed that '/4 acre (10,890 sq. ft.) is retained by each existing home, and the remainder is included in the part vacant land inventory. For other residential uses aerial imagery was used to determine the size of the unused portion. For commercial or industrial lots with structures that are in value 40%below their land value, it is assumed that half the lot is developed and the other half is vacant. Or commercial or industrial lots of at least one acre in size and one half-acre of unimproved land. Redevelopment Potential: Occupied properties with a higher land value than the on-site structure. Properties must be at least 20,000 sq.ft. to be considered of interest for redevelopment. Developed: Properties unlikely to yield additional growth. Other: Properties which are regarded as unlikely to be developed because they are restricted by existing uses such as: Public lands, public parks, schools, ballfields, roads and public right-of- way (ROW); common areas held by Homeowners Associations, cemeteries, power substations, and constrained by more than 85% of its area. These tax lot classifications were validated using satellite imagery, street view, building permit data, and assessor records. Preliminary results were refined by City staff. Environmental Constraints The BLI methodology for identifying and removing development constraints is consistent for residential and employment land. "Buildable Land" includes residential and economic designated land within the 5 annexation areas, including vacant, part vacant and land that is likely to be redeveloped; and suitable, available and necessary for residential and economic uses. Public-owned land is generally not considered to be available for new growth unless the underlying zoning permits •4•> FCS GROUP page 32 March 2024 35 City of Yakima FCS GROUP Growth Plan and Annexation Study it. It should be noted that "available" in this context does not mean that the land is presently on the market. It is assumed in this analysis that such land is expected to come on the market within the 20- year timeframe of this study. Land is considered to be "suitable for new development" unless it is: • Is severely constrained by natural hazards • Is within a floodway • Is within a shoreline environment • Is affected by a wetland • Is affected by geological hazards • Has slopes over 40 percent • Cannot be provided or served with public facilities Some lands can still be developed even if within a natural hazard. For the purpose of this study these lands are constrained by 50%of the following hazard: • Land within the 100-year floodplains. This includes lands in the floodplain overlay. • Slopes between 15 and 40%. The following map (Figure A-1) depicts the results of the BLI which is used for this study. 4****) FCS GROUP page 33 March 2024 36 City of Yakima FCS GROUP Growth Plan and Annexation Study Figure A-1: Yakima Buildable Land Inventory f p F r�� 4u Y, :14 - th' �f,.. Ca o I 1 V! h a kj / I •' ( L(P��L Q .. `' t✓ O g SD c D r F.- _7 a N ,^ — 1 * > 1> L, m o I y • A Cnl D -I IP IF ■ } 73 a j / 1 1 ± I F • t. «a Ti a n ,rr,1 A.o:: - i, w+ r. .e°I 1 ice/ // '44'` .... �� fir,,? � I. �.a r _ - :• erAil 4 page 34****> FCS GROUP March 2024 37 City of Yakima FCS GROUP Growth Plan and Annexation Study APPENDIX B : ESRI MARKET DATA • �s1� esri£ Market Profile Yakima City,WA Prepared by Esri Yakima City,WA(5380010) Geography: Place Yakima city,... Population Summary 2010 Total Population 91,788 2020 Total Population 96,968 2020 Group Quarters 2,078 2023 Total Population 98,579 2023 Group Quarters 1,907 2028 Total Population 99,551 2023-2028 Annual Rate 0.20% 2023 Total Daytime Population 108,380 Workers 53,177 Residents 55,203 Household Summary 2010 Households 33,297 2010 Average Household Size 2.68 2020 Total Households 35,379 2020 Average Household Size 2.68 2023 Households 36,315 2023 Average Household Size 2.66 2028 Households 37,001 2028 Average Household Size 2.64 2023-2028 Annual Rate 0.37% 2010 Families 21,619 2010 Average Family Size 3.30 2023 Families 23,377 2023 Average Family Size 3.28 2028 Families 23,891 2028 Average Family Size 3.23 2023-2028 Annual Rate 0.44% Housing Unit Summary 2000 Housing Units 33,380 Owner Occupied Housing Units 52.8% Renter Occupied Housing Units 40.4% Vacant Housing Units 6.8% 2010 Housing Units 35,056 Owner Occupied Housing Units 51.6% Renter Occupied Housing Units 43.4% Vacant Housing Units 5.0% 2020 Housing Units 37,192 Owner Occupied Housing Units 50.5% Renter Occupied Housing Units 44.6% Vacant Housing Units 4.9% 2023 Housing Units 38,114 Owner Occupied Housing Units 54.4% Renter Occupied Housing Units 40.9% Vacant Housing Units 4.7% 2028 Housing Units 38,715 Owner Occupied Housing Units 55.9% Renter Occupied Housing Units 39.7% Vacant Housing Units 4.4% Data Note:Household population includes persons not residing in group quarters. Average Household Size is the household population divided by total households. Persons in fanilies include the householder and persons related to the householder by birth, marriage,or adoption. Per Capita Income represents the income received by all persons aged 15 years and over divided by the total population. geography. ���> FCS GROUP page 35 March 2024 38 City of Yakima FCS GROUP Growth Plan and Annexation Study • pi� esr�� Market Profile �: Terrace Heights Prepared by Esri Area: 8.3 square miles Population Summary 2010 Total Population 6,850 2020 Total Population 8,821 2020 Group Quarters 172 2023 Total Population 8,735 2023 Group Quarters 175 2028 Total Population 8,753 2023-2028 Annual Rate 0.04% 2023 Total Daytime Population 6,895 Workers 2,578 Residents 4,317 Household Summary 2010 Households 2,777 2010 Average Household Size 2.46 2020 Total Households 3,603 2020 Average Household Size 2.40 2023 Households 3,647 2023 Average Household Size 2.35 2028 Households 3,689 2028 Average Household Size 2.33 2023-2028 Annual Rate 0.23% 2010 Families 2,016 2010 Average Family Size 2.84 2023 Families 2,627 2023 Average Family Size 2.72 2028 Families 2,663 2028 Average Family Size 2.68 2023-2028 Annual Rate 0.27% Housing Unit Summary 2000 Housing Units 2,597 Owner Occupied Housing Units 78.1% Renter Occupied Housing Units 18.9% Vacant Housing Units 3.0% 2010 Housing Units 2,884 Owner Occupied Housing Units 75.7% Renter Occupied Housing Units 20.5% Vacant Housing Units 3.7% 2020 Housing Units 3,738 Owner Occupied Housing Units 64.0% Renter Occupied Housing Units 32.3% Vacant Housing Units 3.7% 2023 Housing Units 3,777 Owner Occupied Housing Units 71.1% Renter Occupied Housing Units 25.5% Vacant Housing Units 3.4% 2028 Housing Units 3,807 Owner Occupied Housing Units 72.8% Renter Occupied Housing Units 24.1% Vacant Housing Units 3.1% Data Note:Household population includes persons not residing in group quarters. Average Household Size is the household population divided by total households. Persons in families include the householder and persons related to the householder by birth, marriage,or adoption. Per Capita Income represents the income received by all persons aged 15 years and over divided by the total population. geography. +> FCS GROUP page 36 March 2024 39 City of Yakima FCS GROUP Growth Plan and Annexation Study • pi� esr�� Market Profile �: South Airport to Ahtanum Road Prepared by Esri Area: 1.1 square miles Population Summary 2010 Total Population 799 2020 Total Population 928 2020 Group Quarters 5 2023 Total Population 945 2023 Group Quarters 3 2028 Total Population 961 2023-2028 Annual Rate 0.34% 2023 Total Daytime Population 613 Workers 162 Residents 451 Household Summary 2010 Households 302 2010 Average Household Size 2.64 2020 Total Households 344 2020 Average Household Size 2.68 2023 Households 350 2023 Average Household Size 2.69 2028 Households 360 2028 Average Household Size 2.66 2023-2028 Annual Rate 0.57% 2010 Families 233 2010 Average Family Size 2.92 2023 Families 268 2023 Average Family Size 2.99 2028 Families 276 2028 Average Family Size 2.95 2023-2028 Annual Rate 0.59% Housing Unit Summary 2000 Housing Units 267 Owner Occupied Housing Units 82.8% Renter Occupied Housing Units 12.7% Vacant Housing Units 4.5% 2010 Housing Units 314 Owner Occupied Housing Units 80.6% Renter Occupied Housing Units 15.6% Vacant Housing Units 3.8% 2020 Housing Units 350 Owner Occupied Housing Units 83.7% Renter Occupied Housing Units 14.6% Vacant Housing Units 2.0% 2023 Housing Units 356 Owner Occupied Housing Units 81.5% Renter Occupied Housing Units 16.9% Vacant Housing Units 1.7% 2028 Housing Units 363 Owner Occupied Housing Units 83.5% Renter Occupied Housing Units 15.7% Vacant Housing Units 0.8% Data Note:Household population includes persons not residing in group quarters. Average Household Size is the household population divided by total households. Persons in families include the householder and persons related to the householder by birth, marriage,or adoption. Per Capita Income represents the income received by all persons aged 15 years and over divided by the total population. geography. +> FCS GROUP page 37 March 2024 40 City of Yakima FCS GROUP Growth Plan and Annexation Study • pi� esr�� Market Profile �: Bachelor Creek, Spring Creek to Wiley City Prepared by Esri Area: 1.83 square miles Population Summary 2010 Total Population 1,162 2020 Total Population 1,388 2020 Group Quarters 13 2023 Total Population 1,429 2023 Group Quarters 7 2028 Total Population 1,471 2023-2028 Annual Rate 0.58% 2023 Total Daytime Population 1,085 Workers 273 Residents 812 Household Summary 2010 Households 450 2010 Average Household Size 2.57 2020 Total Households 526 2020 Average Household Size 2.61 2023 Households 541 2023 Average Household Size 2.63 2028 Households 563 2028 Average Household Size 2.60 2023-2028 Annual Rate 0.80% 2010 Families 345 2010 Average Family Size 2.88 2023 Families 412 2023 Average Family Size 2.96 2028 Families 429 2028 Average Family Size 2.92 2023-2028 Annual Rate 0.81% Housing Unit Summary 2000 Housing Units 393 Owner Occupied Housing Units 80.4% Renter Occupied Housing Units 17.0% Vacant Housing Units 2.5% 2010 Housing Units 467 Owner Occupied Housing Units 79.9% Renter Occupied Housing Units 16.5% Vacant Housing Units 3.6% 2020 Housing Units 553 Owner Occupied Housing Units 79.4% Renter Occupied Housing Units 15.7% Vacant Housing Units 5.2% 2023 Housing Units 572 Owner Occupied Housing Units 70.3% Renter Occupied Housing Units 24.3% Vacant Housing Units 5.4% 2028 Housing Units 590 Owner Occupied Housing Units 72.5% Renter Occupied Housing Units 22.9% Vacant Housing Units 4.6% Data Note:Household population includes persons not residing in group quarters. Average Household Size is the household population divided by total households. Persons in families include the householder and persons related to the householder by birth, marriage,or adoption. Per Capita Income represents the income received by all persons aged 15 years and over divided by the total population. geography. +> FCS GROUP page 38 March 2024 41 City of Yakima FCS GROUP Growth Plan and Annexation Study • ` �� eSria Market Profile : West Valley to Dazet and Estes Roads Prepared by Esri Area: 3.43 square miles Population Summary 2010 Total Population 1,131 2020 Total Population 1,389 2020 Group Quarters 10 2023 Total Population 1,352 2023 Group Quarters 5 2028 Total Population 1,353 2023-2028 Annual Rate 0.01% 2023 Total Daytime Population 1,661 Workers 884 Residents 777 Household Summary 2010 Households 386 2010 Average Household Size 2.92 2020 Total Households 472 2020 Average Household Size 2.92 2023 Households 477 2023 Average Household Size 2.82 2028 Households 482 2028 Average Household Size 2.80 2023-2028 Annual Rate 0.21% 2010 Families 301 2010 Average Family Size 3.29 2023 Families 370 2023 Average Family Size 3.18 2028 Families 375 2028 Average Family Size 3.14 2023-2028 Annual Rate 0.27% Housing Unit Summary 2000 Housing Units 215 Owner Occupied Housing Units 83.3% Renter Occupied Housing Units 10.7% Vacant Housing Units 6.0% 2010 Housing Units 411 Owner Occupied Housing Units 76.9% Renter Occupied Housing Units 17.0% Vacant Housing Units 6.1% 2020 Housing Units 496 Owner Occupied Housing Units 77.6% Renter Occupied Housing Units 17.5% Vacant Housing Units 3.0% 2023 Housing Units 499 Owner Occupied Housing Units 75.2% Renter Occupied Housing Units 20.4% Vacant Housing Units 4.4% 2028 Housing Units 502 Owner Occupied Housing Units 77.1% Renter Occupied Housing Units 18.9% Vacant Housing Units 4.0% Data Note:Household population includes persons not residing in group quarters. Average Household Size is the household population divided by total households. Persons in families include the householder and persons related to the householder by birth, marriage,or adoption. Per Capita Income represents the income received by all persons aged 15 years and over divided by the total population. geography. 4> FCS GROUP page 39 March 2024 42 City of Yakima FCS GROUP Growth Plan and Annexation Study • pi� esr�� Market Profile �: Northwest Scenic Road to Cowiche Creek Prepared by Esri Area: 1.83 square miles Population Summary 2010 Total Population 717 2020 Total Population 802 2020 Group Quarters 0 2023 Total Population 809 2023 Group Quarters 0 2028 Total Population 937 2023-2028 Annual Rate 2.98% 2023 Total Daytime Population 569 Workers 82 Residents 487 Household Summary 2010 Households 289 2010 Average Household Size 2.48 2020 Total Households 310 2020 Average Household Size 2.59 2023 Households 309 2023 Average Household Size 2.62 2028 Households 365 2028 Average Household Size 2.57 2023-2028 Annual Rate 3.39% 2010 Families 216 2010 Average Family Size 2.84 2023 Families 229 2023 Average Family Size 3.01 2028 Families 271 2028 Average Family Size 2.94 2023-2028 Annual Rate 3.43% Housing Unit Summary 2000 Housing Units 240 Owner Occupied Housing Units 85.0% Renter Occupied Housing Units 13.8% Vacant Housing Units 1.2% 2010 Housing Units 301 Owner Occupied Housing Units 79.1% Renter Occupied Housing Units 16.9% Vacant Housing Units 4.0% 2020 Housing Units 321 Owner Occupied Housing Units 79.4% Renter Occupied Housing Units 17.1% Vacant Housing Units 4.7% 2023 Housing Units 321 Owner Occupied Housing Units 88.5% Renter Occupied Housing Units 7.8% Vacant Housing Units 3.7% 2028 Housing Units 375 Owner Occupied Housing Units 76.8% Renter Occupied Housing Units 20.5% Vacant Housing Units 2.7% Data Note:Household population includes persons not residing in group quarters. Average Household Size is the household population divided by total households. Persons in families include the householder and persons related to the householder by birth, marriage,or adoption. Per Capita Income represents the income received by all persons aged 15 years and over divided by the total population. geography. +> FCS GROUP page 40 March 2024 43 City of Yakima FCS GROUP Growth Plan and Annexation Study Area 2-South Area 3-Bachelor Area 4-West Area 5-Northwest Area 1-Terrace Businesses by NAICS CODE City Limits Airport to Creek,Spring Valley to Dazet Scenic Road to Heights Ahtanum Road Creek to Wiley City and Estes Roads Cowiche Creek Firms Employees Firms Employees Firms Employees Firms Employees Firms Employees Firms Employees Agriculture,Forestry,Fishing&Hunting 18 934 2 12 0 0 0 1 1 4 1 2 Mining 0 0 0 0 0 0 0 0 0 0 0 0 Utilities 4 87 0 1 0 0 0 0 0 0 0 0 Construction 169 1,159 17 250 1 4 4 10 4 14 1 4 Manufacturing 127 3,139 6 162 1 85 1 5 1 3 1 5 Wholesale Trade 152 2,856 10 97 1 5 1 64 3 87 0 1 Retail Trade 473 6,729 22 755 1 10 1 29 4 69 3 109 Transportation&Warehousing 77 1,055 4 203 1 11 0 1 1 1 0 1 Information 82 766 7 240 0 0 0 0 0 1 1 1 Finance&Insurance 193 1,226 9 32 0 0 0 0 0 0 1 5 Real Estate,Rental&Leasing 168 823 9 28 1 3 0 0 2 3 1 2 Professional,Scientific&Tech Services 289 2,152 10 158 1 7 1 2 3 8 2 8 Management of Companies&Enterprises 1 3 0 0 0 0 0 0 0 0 0 0 Administrative,Support&Waste Management Services 97 891 7 62 0 2 1 2 2 5 1 2 Educational Services 91 3,571 5 126 0 12 1 94 4 211 0 0 Health Care&Social Assistance 425 9,761 7 116 0 4 0 1 1 8 1 6 Arts,Entertainment&Recreation 56 1,470 5 27 0 0 0 8 0 2 0 0 Accommodation&Food Services 275 4,057 8 87 0 1 1 37 3 28 2 17 Other Services(except Public Administration) 440 2,715 33 153 1 2 2 5 5 14 3 14 Public Administration 137 3,248 6 126 0 4 1 17 1 38 0 0 Unclassified Establishments 138 289 8 6 0 0 1 5 1 2 1 0 Total 3,412 46,931 173 2,642 9 151 16 282 38 497 18 177 •::> FCS GROUP page 41 March 2024 44 City of Yakima FCS GROUP Growth Plan and Annexation Study THIS PAGE INTENTIONALLY LEFT BLANK 4> FCS GROUP page 42 Annexation Study Update City Council Study Session May 28, 2024 Overview • FCS Group hired to study potential annexation areas within the City's Urban Growth Area (UGA) • Five areas were studied • Existing conditions • Development potential • Fiscal impact on the City Study Areas ..„.. .„ ..: . . ,. .,. ..„..,,,„.„,„:, .:.„:„„„,......:::,„„„:. ,. ...,,, ; ..;,„,,,,,„,„,,,,,.;„:z.,.......,.,,,:„...,.:„..,„,„,..::,...„,,,,,„,„.:.....,..:,..::„.., . , ..... ,, . .,. . . 4- , .,• . . ... ..„..„:,,,,,,,,,,,,..4„, Ai..„..:,„„,.,,:.;.-„.,.., .'...,.,, ,, .,......,„,.,v,„:„.„.:::::„:„,,,,1„...... .,,,,:.„,,,,,.„.,,„,„,„„„,„,„.„,,,,,.:„,.... .:.......:.....,,,„„.„,„„„,„,:,....„,„:„.„:„„...,,..„......,. ..... ..„:„,„:„:„,.„,„.,,,;.,„„:„*....„. :.:..,......„...... . .. ., ..., ,, , ... .„,„..,2„,„„,„,„„,,..,,,,„.:,„,„,.:.,, .„,,,;,„„:::::,„_::„...„„:„..:,..„„„,„,,,.,.... „.„„„,,,,,,,,„:„, . .„.:,„,,,,::::.,...„?.....„,„,..„,...,... ...4....„„,„ ...,„„„,,,,,i„,;:f...4, 1 .• .. 4i s, n � L SO AREA.5 ,,- _, '**,-'"L.a. ` , t r IN _ l• S .4" � AREA 1 FF `" Annexation Areas Buildable Land 'r� r ... Q Yakima Urban Area Vacant Constraints* ® Partially Vacant/Underutilized "''" . n ^ Redevelopment Potential - i?_, nano,geningnaina:a.as,:mpesao% dngne, _ ARE94;4 ! ._ S00 yearflootlplanantl areas wtM1aslope of l5% anangne.a,e.e..,tteanyso% Other Developed ° y _ 1 `Q ` .•.'. - ,. �•4\ '' it !• • I., • • AREA 2 -. n � r' 1 � L , - .1_ Area 1 : Terrace Heights ......,.,N\ r f i / .y cf._� k Existing Conditions J 1 i'4*' , 4 A �-' Jobs 2,642 ""` . R.,= '"� ' ' Population 8,735 AI ` "' Annexation Impact M Area 1',:,,: — Potential New Jobs 2,373 Potential New Dwellings 2,713 Area 2 : South Airport Existing Conditions Jobs 151 Population 945 Annexation Impact 4 Area 2 Potential New Jobs 414 AM7%:a Potential New Dwellings 181 Area 3 : Bachelor Creek Existing Conditions 4 Jobs 282 Population 1,429 Area 3 Annexation Impact Potential New Jobs 0 Potential New Dwellings 722 Area 4 : West Valley Existing Conditions r 0 Jobs 497 [II' Population 1,352 1-1 Area Annexation Impact Potential New Jobs 739 Li Potential New Dwellings 2,375 1 Area 5 : Northwest A. Existing Conditions :�r s �--.� r L� g Jobs 177 1.,e„b, Population 809 Area 5 / Annexation Impact Potential New Jobs 0 Potential New Dwellings 888 4 Annexation Process Annexation Petition Options • Election Method (rarely used today) • Sixty Percent Method • Initiation : owners of at least 10% of assessed value • Petition : owners of at 60% of assessed value • Alternative Petition Method • Initiation : owners of at least 10% of acreage • Petition : a majority of owners of acreage + a majority of registered voters within annexation area Annexation Petition Process City Council Circulation of e City Council votes considers initial request petition on annexation Annexation Petition Process Initiators file with BRB must "assume - No jurisdiction: Boundary Review jurisdiction" within approved Board 45 days r - otherwise, acts within 120 days Questions ?