If voters approve this annexation, the applicants propose to develop the property as a multiple family residential development composed of 133 dwelling units (25 units/acre) in the area proposed for annexation.

The property is located east of Wallace Road NW and north of Harritt Drive NW. If annexed, the property would be designated in the Salem Area Comprehensive Plan as “Multiple Family Residential” and zoned RM2 (Residential Multiple Family).

If the property is developed as proposed by the applicants, the proposed annexation is estimated to create an annual deficit of $22,586 to the City’s General Fund (in year 2004 dollars). Planned level of service increases could increase the estimated annual deficit.

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 42 students because of the annexation and development. Because capacity exists, there would be no capital cost for additional facilities.

The Salem Fire Department indicates a response time would be four to five minutes. The Police Department indicates that the proposed development would require an additional 0.4 full-time equivalent police officer. The Public Works Department indicates that adequate services would be constructed by the developers at their cost. Community Services-Parks indicates that partial park service would be provided by Orchard Heights Community Park on Orchard Heights Road NW and Wallace Marine Park. 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 report dated May 24, 2004. Copies of staff report 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.