If voters approve this annexation, the applicant proposes to develop the subject property as a single family residential development composed of 20 lots (4.78 dwelling units/acre).

The property is located west of Cordon Road NE, north of the Hearth Street NE/Ward Drive Intersection, and north along Ward Drive, is designated in the Salem Area Comprehensive Plan as “Developing Residential.” Zoning of the property if annexed would be RA (Residential Agriculture).

If the property is developed as proposed by the applicant, the proposed annexation is estimated to create an annual benefit of $7,501 to the City’s General Fund (in year 2004 dollars). 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 10 students because of the annexation and development. Since adequate school capacity currently exists in the area of this development, the School District estimates no additional capital costs would be incurred.

The Salem Fire Department indicates a response time would be four to five minutes. The Police Department indicates that no increase in full time equivalent police officers would be required. The Public Works Department indicates that adequate services would be constructed by the developers at their cost. Community Services-Parks indicates that the proposed annexation is within the one-half mile service area of undeveloped park land between Stephens Middle School and Yoshikai Elementary School. The Salem Finance Department indicates that 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 reports dated June 14, 2004 and June 21, 2004. Copies of the 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

No arguments in favor of or opposed to this measure were filed.