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Annexation by Town -- what does it mean to me?
Old 12-12-2007, 07:00 PM   #1
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Annexation by Town -- what does it mean to me?

I just read in the local paper that the MUD (municipal utility district) I live in is up for consideration to be annexed by the adjacent town. What does this mean to me? Anyone else been annexed? What usually happens? Is this generally a Good Thing or bad?

My understanding is that the town has initiated this. They had listed us in their annexation plan over 3 years ago, meeting a state requirement, and I think they are free to annex us whenever they want. There is a hearing next week but its the day I plan to leave for the holidays.

I don't expect services to change much. We already get water and sewer from them, so maybe it'll be a bit cheaper. Schools are at an independant district level. I've already got a nice city park almost across the street. We already have covenents that I'm sure are more restrictive than anything the city would put on us. I'm moving next summer so I'm not too worried about changes in services and I don't think they'll amount to much.

What I am wondering is what this usually means financially and for resale?

Is there ever an assessment of any kind? I think we have some debt in the MUD, nothing too bad I think. Likewise I don't think the town is in any trouble.

Looks like the city tax rate is .12% less than our MUD, so that's good. I would guess that would help my home value, though when I bought I didn't really realize it wasn't part of the city.

Just wondering what others' experience on this has been.
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Old 12-12-2007, 07:04 PM   #2
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By the way this is in Texas if that matters.
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Old 12-12-2007, 07:21 PM   #3
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Originally Posted by RunningBum View Post
I just read in the local paper that the MUD (municipal utility district) I live in is up for consideration to be annexed by the adjacent town. What does this mean to me? Anyone else been annexed? What usually happens? Is this generally a Good Thing or bad?

My understanding is that the town has initiated this. They had listed us in their annexation plan over 3 years ago, meeting a state requirement, and I think they are free to annex us whenever they want. There is a hearing next week but its the day I plan to leave for the holidays.

I don't expect services to change much. We already get water and sewer from them, so maybe it'll be a bit cheaper. Schools are at an independant district level. I've already got a nice city park almost across the street. We already have covenents that I'm sure are more restrictive than anything the city would put on us. I'm moving next summer so I'm not too worried about changes in services and I don't think they'll amount to much.

What I am wondering is what this usually means financially and for resale?

Is there ever an assessment of any kind? I think we have some debt in the MUD, nothing too bad I think. Likewise I don't think the town is in any trouble.

Looks like the city tax rate is .12% less than our MUD, so that's good. I would guess that would help my home value, though when I bought I didn't really realize it wasn't part of the city.

Just wondering what others' experience on this has been.
The main thing I thought about would be the property tax rates--in city or out of city. You indicate the city rate is less than from the MUD but are there other taxes "out of city" besides from the MUD. Check all that out at the assessor's office. If you are correct that TOTAL property tax is less being part of city, then good deal for you.

Another thought is that if you are now covered by City Fire Dept., perhaps you may get a bump up by insurance raters as to fire protection ratiung and thus qualify for lower HO insuirance premium. Of course, if the city fire dept already was the designated one to cover fires for your neighborhood, then nothing would change.

I don't really know that being in or out of city would make much difference on resale value if you already had needed services, utilities, and school access. But it certainly shouldn't detract from values either.
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Old 12-12-2007, 07:23 PM   #4
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Depends on what they plan to do, and what the annexation is for.

I lived in an unincorporated area twice and was annexed by a nearby city for the same reason both times: water. The cities decided that anyone who wanted their water supply had to be part of the town. Depending on the state it makes good sense for the city: they get a portion of your property taxes, AND your utility payment.

Issues in one area were that the city prohibited farm animals, and the area we lived in had plenty of farms, and that the city required streets to have sidewalks, and we had none. What ended up happening was that the city amended their bylaws to allow farm animals and no need for sidewalks, but enforced their utility demand that all homes have a water meter and other upgrades, which resulted in a $4000 special assessment. Word is that in a few years when everyones septic tanks explode (since most of the people living there never pumped them and couldnt understand why they'd want to), was a $12,000 special assessment to hook everyone up to the city sewers.

So I guess the answer is "it depends"...
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Old 12-12-2007, 08:47 PM   #5
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Thanks for the responses.

I'm already served by the nearby city fire dept, but we'll actually pick up city police, which should improve response time if ever needed.

Sounds like there's no hidden evil since we're already at city-like services, unless they find something to assess us on.
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Old 12-13-2007, 10:34 AM   #6
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Thanks for the responses.

I'm already served by the nearby city fire dept, but we'll actually pick up city police, which should improve response time if ever needed.

Sounds like there's no hidden evil since we're already at city-like services, unless they find something to assess us on.
When I lived in College Station (Texas), we paid astronomical property taxes (but our darling daughter got the finest public school education possible so it was worth it). Others, without kids, much preferred to live just outside the city limits where the taxes were far less. If they had kids and wanted them in the CSISD schools, they had to apply, hope there was room, and then pay thousands of $$$ in tuition or fees each year.
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Old 12-13-2007, 11:19 AM   #7
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I live in an unincorporated area and do not have to pay the "city tax" which people in town must. The tax is independent of property taxes levied by the county.

City residents are prohibited from most outside burning while we are not and can burn all kinds of things. We both live in the same fire protection district.
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Old 12-13-2007, 11:20 AM   #8
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When I lived in College Station (Texas), we paid astronomical property taxes (but our darling daughter got the finest public school education possible so it was worth it). Others, without kids, much preferred to live just outside the city limits where the taxes were far less. If they had kids and wanted them in the CSISD schools, they had to apply, hope there was room, and then pay thousands of $$$ in tuition or fees each year.
RunningBum said he'll remain in the same school district he's in now after annexation. We have the same situation here. Bordering unincorporated neighborhoods to our town are in our school district so that part would remain the same if they were annexed.

Since you already get water and sewer from the annexing town, and that's the most likely cause for an expensive special assesment, you'll probably clear there.

There may be a few minor nuisance taxes such as city auto stickers and that kind of crap, but, at least here, generally no big deal.

Since you already have the same schools, water, sewer, fire, etc., I doubt you'll see a noticeable valuation change on your home.
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Old 12-13-2007, 11:25 AM   #9
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RunningBum said he'll remain in the same school district he's in now after annexation. We have the same situation here. Bordering unincorporated neighborhoods to our town are in our school district so that part would remain the same if they were annexed.

Since you already get water and sewer from the annexing town, and that's the most likely cause for an expensive special assesment, you'll probably clear there.
You know, having access to city police might raise his property values, too. I know I will not consider a house without a full time paid fire department, and without a good police force, and there are probably other buyers who feel like these are both "musts".
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Old 12-13-2007, 03:16 PM   #10
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Bottom line, it means they're not getting enough property tax revenues, and want to get more.......
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