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Council agrees to research annexation fees after mixed views on revenue benefits
Summary
Bicknell council discussed annexation fees, the time and direct costs involved, and whether annexing nearby properties would meaningfully increase town revenue; members assigned follow-up research.
Council members discussed whether the town should charge annexation fees and whether annexing nearby properties such as a gas station would materially increase local revenue.
Council members said annexations require legal work, surveys and staff time and that those direct costs should be recovered through a fee. At the meeting a staff reference to a conversation with “Michelle” said surveys and lawyer costs are direct costs to the applicant. Councilmembers agreed to gather comparative fee information from other jurisdictions and asked staff and two council members to follow up.
Discussion also addressed a common belief that annexing a highway gas station would increase the town's highway tax revenue. Council members noted that highway and sales tax distributions are complex: some local businesses pay into different tax pools and online sales and other accounts affect receipts. One member summarized, "I don't know that we gain a lot of revenue annexing them in and it is a huge process to annex."
Next steps: The council assigned homework: Carrie will compile comparative annexation fees, and Weston was asked to research annexation fee practices and bring findings to the next work meeting for further consideration. No vote was taken.
