ANNEXATION STUDY

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ANNEXATION STUDY

• Proposed Crook Annexation Area
• The proposed area to be annexed into Heber City
  includes the area know as the Junction. It is
  located immediately west of the US40 and US189
  intersection, and contains
• 43.78 /- Acres

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PROPOSED "JUNCTION"
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PROPOSED "JUNCTION"

• Key Question 1

Is the area is adjacent to the incorporated
boundaries of Heber City and is it part of the
Annexation Declaration Area as defined by the
Heber City Comprehensive Plan? Yes
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PROPOSED "JUNCTION"

• Key Question 2

Are the boundaries of the proposed annexation
consistent with the ability of Heber City to
provide services both from a geographic and
economic standpoint? Yes
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PROPOSED "JUNCTION"

• Key Question 3

Will annexation of the area contribute to the
logical growth pattern of the city and should
encourage orderly growth and regular
boundaries? Yes
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PROPOSED "JUNCTION"

• Key Question 4

Will annexation of the area fairly contribute to
the cost of providing municipal services to the
area?
Yes
The proposed Crook Annexation is expected to
yield Heber City almost 1,700,000 annually in
new revenues and to cost 773,000 annually in
services, and therefore is expected to provide to
Heber City over 900,000 annually to
contributions to indirect costs.
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PROPOSED "JUNCTION"

• Proposed New Retail Development
• A multi-department food store of approximately
  130,000 Square Feet on 16 acres of land, or a
  combination of a 60,000 sq ft grocery store and a
  multi-department store without food.
• Other Retail/Commercial - 18.7 acres or 814,572
  square feet of land for the balance of the
  commercial at a 25 coverage ratio we should
  assume 203,643 square feet of other
  retail/commercial.

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PROPOSED "JUNCTION"

• Housing - 24 acres at a utilization rate not to
  exceed 20 units per acres or 480 units. (The
  final utilization rate is subject to zoning and
  site plan review, this estimate is based on
  maximum efficiency which might be difficult to
  achieve.)

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SALES TAX REVENUES

• Net increase in Point of Sale (.5 POS) Sales Tax
  Receipts to Heber City
• 2007 (partial year) - 202,000
• 2008 - 520,000
• 2009 - 575,000
• 2010 - 598,000
• 2021 - 919,000
• Inflation Factor used for Retail Sales 3.9 per
  year which generally matches same store sales
  history.

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SALES TAX REVENUES

• Increase in Sales Taxes to Heber City 15 years
  (2021)
• 10.3 million Cash
• 6.3 million NPV

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PROPERTY TAX REVENUES

• Net increase in property values
• Commercial Developments
• 49.8 million at Construction Value
• Residential Developments
• 25.3 million Taxable Value _at_ 55 of Market
  Value

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PROPERTY TAX REVENUES

• Increase in Property Tax Receipts to Heber City
• 2007 (partial year) - 54,000
• 2008 - 63,000
• 2009 - 65,000
• 2010 - 65,000
• 2021 - 65,000
• No Inflation Factor was used for property values
  because of Truth in Taxation eliminates
  inflation growth.

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PROPERTY TAX REVENUES

• Projected net increase in property tax revenues
  to Heber City
• 65,000 per year
• 962,000 15 year total cash
• 600,000 15 year total NPV

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PROPERTY TAX REVENUES

• Projected increase in property tax
• revenues to other taxing entities
• Wasatch County School District
• 337,000 per year
• 5.0 million 15 year total
• Wasatch County
• 137,000 per year
• 2.01 million 15 year total

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HEBER CITY EXPENSES

• Annual City Expenditure per Household
• Heber City - 1,314 per year
• Average of Reference Cities - 1,611 per year
• Reference Cities Vernal, Alpine, Highland,
  Hurricane, North Salt Lake, Price, Washington
  Terrace and Park City (Not included in averages).

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ANTICIPATED REVENUES

• Annual City Revenues per Household
• Heber City - 1,508 per year
• Average of Reference Cities - 1,487 per year
• Reference Cities Vernal, Alpine, Highland,
  Hurricane, North Salt Lake, Price, Washington
  Terrace and Park City (Not included in averages).

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ANNEXATION REVENUES/EXPENSES

• The proposed Crook Annexation therefore is
  expected to yield Heber City almost 1,700,000
  annually in new revenues and to cost 773,000
  annually in services.
• The proposed Crook Annexation therefore is
  expected to provide to Heber City over 900,000
  annually to contributions to indirect costs.

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Services Requiring a Limited Capital Outlay

• Street maintenance and cleaning, were planned be
  provided within a short tine. The ¼ mile of the
  proposed new 200 West extension would be the only
  street requiring City maintenance.
• Police protection is expected to be provided
  immediately, even though this might require
  spreading out existing manpower and equipment.
  Private security will be used for most of the
  on-site commercial development, but law
  enforcement is always needed to take accident
  reports and shopliftings.
• Fire protection should also be provided as soon
  as possible. Impact fees are payable to the Fire
  District when buildings are constructed, which
  are calculated to pay for Fire District capital
  improvements and equipment costs. 

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No Services Require a Capital Outlay

• No services are anticipated that will require
  extensive capital outlay within a short time.
• Services that typically involve capital outlays,
  such as streets and utilities will be provided by
  the developer according to approved policies and
  standards.

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No Subsidy Needed

• No Subsidy Needed
• It does not appear necessary for the proposed
  annexed area to subsidize current Heber City or
  for current Heber City residents and property
  owners to provide any capital or operating subsidy

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CONCLUSIONS

• The proposed Heber City The Junction"
• mixed use project will therefore
• Increase City Revenues
• 665,000/year Sales and Property Taxes
• 6.9 million (15 yrs NPV)
• FY 2005 Heber City Expenditures
• General Govt 1,029,522 65
• Public Safety 1,401,998 47
• Highways Public Works 922,693 72

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CONCLUSIONS

• Opportunities
• Meet unmet retail potential in Heber City.
• Supermarket
• General Merchandise
• Home Improvement
• Apparel
• Provide additional employment opportunities
  Professional, Office and Retail

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CONCLUSIONS

• Opportunities
• Reinforce Heber City as a major regional retail
  site.
• Keep retail sales by Heber City residents in
  Heber City.
• Keep the retail climate in Heber City current,
  competitive and vibrant.