MTD outlines annexation plans for four Urbana areas; residents press for better notice and tax clarity

Jay Rank, operations director for the Mass Transit District, told the Urbana Committee of the Whole that the district has identified four areas around the city that meet statutory criteria for annexation and could be considered for inclusion in MTD service territory.

Rank said the district’s evaluation focuses on parcels that are contiguous to the district, not classified as farmland and within municipal limits; he identified North Urbana near Airport Road, Northeast Urbana near Airport and Highcross, East Urbana parcels near the Urbana Walmart, and continuing development in South Ridge as the four candidate areas. Rank said a landowner may also petition to join the district voluntarily.

The MTD representative explained how service could change if areas join the district. He told council members the district could extend the boundaries of its new on-demand service, Northeast Connect, into some candidate areas and could also consider moving fixed routes closer to homes where feasible.

On taxes and notification, Rank said the MTD rate is "0.34 dollars for every $100 of equalized assessed value," which he estimated would amount to less than 5% of a homeowner’s tax bill depending on precise assessments. He also said the statutory public-notice process requires a newspaper legal notice and certified mail to property owners of parcels larger than five acres, adding the district could look into mailing smaller-parcel owners if address data is available.

Residents and council members pressed for clearer direct notification to single-family homeowners and for clarity about whether residents could vote to reject annexation; Rank replied the district’s board decides whether to pursue annexation after public hearings and that, under the district process, residents in annexed areas do not have a direct vote to veto a board-initiated annexation.

Councilmembers asked whether tax-exempt institutions within proposed boundaries (a cemetery, a church) would be assessed; staff and Rank confirmed exempt properties would not pay the tax but could be included to create contiguous service areas connecting taxable parcels to the district.

The presentation closed with a pledge to provide maps and project materials to the clerk’s office for distribution to council members so they could answer constituent questions.

What’s next: MTD said the next step would be public hearings if the board decides to move forward; council members urged staff to follow up on the options for direct mail notifications to homeowners.