If voters approve this annexation, the applicant proposes to develop a 34-lot single family residential subdivision on one of the parcels. There are no specific development plans for the adjacent lot, that would become an enclave if the other parcel was annexed. If the entire property develops at the density of the surrounding development, there would be 42 dwelling units with a density of 4.4 dwelling units per acre.

The property is located north of Robins Lane SE and west of the Interstate Highway (I-5) Bypass Area and is designated in the Salem Area Comprehensive Plan as “Developing Residential.” If annexed, zoning of the property would be RA (Residential Agriculture).

The proposed annexation and development are estimated to create an annual benefit of $11,380 to the City’s General Fund (in year 2004 dollars), assuming an average density of 4.4 dwelling units per acre. Planned level of service increases could decrease the annexation’s fiscal benefit.

School operations and maintenance is largely funded by the State School Fund Formula Revenues, including property taxes, state general purpose grant, etc. In fiscal year 2003-04, State School Fund Revenues provided $5,867 per student to the Salem-Keizer School District. In fiscal year 2003-04, the School District estimates the annual cost per student to be $6,644. The difference between the State School Fund Revenues and estimated costs are made up through Exempt Resources, including interest earnings, beginning balance, etc. The School District estimates the addition of 17 students because of the annexation and development. Because capacity exists, there would be no capital cost for additional facilities.

The Salem Fire Department indicates response time would be five to six minutes. The Police Department indicates the proposed development would have a minor impact on police services. The Public Works Department indicates adequate services would be constructed by the developers at their cost. Community Services-Parks indicates the subject property is located outside the park service area. Funding is currently available for acquisition of a neighborhood park to serve this area. The Salem Finance Department indicates the property would begin paying city property taxes in 2005-2006.

The urban growth policies of the Salem Area Comprehensive Plan may be reviewed on the City’s web site (www.cityofsalem.net); at the Salem Public Library; and at the Salem City Hall, Department of Community Development, 555 Liberty Street SE, Salem, Oregon. Also, additional information and findings regarding the proposed annexation are contained in the staff report dated May 24, 2004. Copies of staff reports are available for public review on the City’s web site; at the Salem Public Library; and at the Salem City Hall, Department of Community Development, 555 Liberty Street SE, Salem, Oregon.

Submitted by,

C. Randall Tosh, City Attorney

City of Salem