This is a Council initiated annexation, and no development plan was required.

The property is located East of Wallace Road NW (1740, 1760 and 1790 Wallace Road NW area) and designated in the Salem Area Comprehensive Plan as “Multiple Family Residential.” Zoning of the property if annexed would be RM1 (Multiple Family Residential).

Upon annexation, the property is estimated to create an annual deficit to the City’s General Fund (in year 2004 dollars) of $17,050 for a development with an average density of 8 dwelling units per acre and $32,872 for a development with an average density of 14 dwelling units per acre. Planned level of service increases could increase the estimated annual deficit amount.

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 22 to 39 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 and one-half to five and one-half minutes. The Police Department estimates there would be an increase of 0.40 full time equivalent police officers. The Public Works Department indicates that adequate services would be constructed by the developers at their cost. Community Services-Parks Planning indicates that park service would be provided by Orchard Heights Community Park 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 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 July 6, 2004, and July 12, 2004. Copies of the staff reports are available for public review on the City’s web site, 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.