Chapter 14.08
ANNEXATION AND BOUNDARIES

Sections:

14.08.010    Service area annexation.

14.08.020    Alteration of service area boundaries.

14.08.030    Service area – Dissolution.

14.08.040    Process for alteration of a service area boundary or dissolution without voter approval – Road service areas.

14.08.010 Service area annexation.

If a road proposed for access to a subdivision is maintained by a road service area, the department of public works may recommend annexation of the subdivision to the service area. The assembly may alter the boundaries of the service area in accordance with FNSBC 14.08.020. (Ord. 2008-39 § 3, 2008; Ord. 2005-10 § 2, 2005. 2004 Code § 17.60.200.)

14.08.020 Alteration of service area boundaries.

A. The assembly may alter the boundaries of a service area in accordance with AS 29.35. The borough shall establish an administrative process to annually collect property owners’ requests for removal of parcels authorized in this section. This process shall include deadlines that provide time to update maps, GIS data, and enable and ensure removal of the parcels by the assembly on an annual basis prior to December 31st of each year. If for any reason removal of a parcel conflicts with or creates an impediment to removal of another parcel, requests for removal will be prioritized by date of application. For purposes of this section “adjacent” means an adjoining parcel sharing a common boundary line in excess of 10 feet or parcels whose boundaries would share a common boundary line in excess of 10 feet except for a dedicated right-of-way.

B. A service area that provides road, fire protection, or parks and recreation services in which voters reside may not be altered unless the proposal is approved, separately, by a majority of voters who vote on the question residing in the existing service area and by a majority of the voters who vote on the question residing in the area outside of the service area affected by the proposal. This subsection does not apply to:

1. A proposed change to a service area that provides fire protection services that would result in:

a. Increasing the number of parcels of land in the service area if the increase is no more than six percent and would add no more than 1,000 residents;

b. Decreasing the number of parcels of land in the service area or successor service area if:

i. The owner of the property to be removed requests removal;

ii. The parcel is adjacent to any lot that is outside or concurrently being removed from a fire service area; and

iii. The parcel has either no borough-assessed structure or is located either more than five miles away from a fire station via an existing, constructed road or is located less than five miles away but cannot be accessed by fire apparatus;

c. Increasing or decreasing the number of parcels in the service area or successor service area if the parcel is transferred to a service area that provides more accessible fire protection services to the transferred parcel.

2. Consolidations of two or more road service areas if:

a. Taxes have not been levied in the service area for road maintenance or construction during the last 12 months and there is no balance in any account available to pay for these road services for the service area;

b. During the last 12 months the service area commission has not legally met with a quorum present;

c. There are no road maintenance contracts in effect for the service area; or

d. Existing road maintenance contracts fail to provide for minimum road standards required by law that are necessary to protect the borough from civil liability.

3. A change in the boundaries of a road service area to add a subdivision or parcel that relies on roads maintained by the service area for its only access or for access that is required by the subdivision plat or by other regulation or ordinance, if that change is approved by a majority of the voters residing in the service area.

4. A change in the boundaries of a road service area to exclude a subdivision or parcel that does not rely on the use of roads maintained by the service area for the subdivision’s or parcel’s only access or for access that is required by the subdivision plat or by other regulation or ordinance.

5. A change in the boundaries of a road service area to include or exclude a parcel that is located in more than one service area so that the parcel is only located in one road service area.

6. A change in the boundaries of a road service area to include a parcel that is partially located in the road service area if roads maintained by the service area provide the only access to the parcel.

C. No new service area shall be formed if the new area can be served by annexation to an existing service area.

D. In an election for annexation of an area into an existing service area which is subject to an indebtedness to the road service revolving loan fund or other indebtedness pursuant to FNSBC 7.04.050, the ballot question shall indicate that the annexed area shall be subject to the repayment of the remainder of the indebtedness and the amount of that indebtedness. (Ord. 2016-48 § 2, 2016; Ord. 2014-39 § 2, 2014; Ord. 2008-39 § 2, 2008; Ord. 2006-07 § 2, 2006; Ord. 2004-64 § 2, 2004; Ord. 2003-55 § 6, 2003; Ord. 2001-65 § 7, 2001; Ord. 86-043 § 34, 1986. 2004 Code § 14.01.081.)

14.08.030 Service area – Dissolution.

A. The assembly may dissolve a service area in accordance with AS 29.35. An ordinance may be introduced directly by an assemblymember, the mayor or a committee of the assembly or petition as set forth below.

B. One or more persons who own real property within a service area may submit an application for petition to the director of public works. The application shall state the name of the service area to be dissolved. The persons submitting the application shall be the sponsors of the petition. Additional sponsors may be added at any time before the petition is filed by submitting the name of each sponsor to the director.

C. Not more than two weeks following filing of the application for petition, the director shall prepare, and make available to the sponsors who filed the application, a petition which shall contain:

1. The name of the service area to be dissolved;

2. A map or other description sufficient to identify the service area to be dissolved, as determined by the director;

3. A notice that the property within the service area to be dissolved shall remain liable for any debts of the service area which become due and owing after the dissolution with said debt to be collected through taxation; and

4. Such other information as the director shall deem appropriate.

D. The sponsors shall file the petition with the director not more than 180 days after the date on which the application for petition was filed. The petition shall be sufficient if it contains:

1. The signatures of a simple majority of the owners of real property within the service area to be dissolved, as shown on the most recent property tax assessment roll, with the date of each signature; and

2. A statement signed and dated by each sponsor who circulated the petition asserting that the sponsor personally circulated the petition, that all signatures were affixed in the presence of the sponsor, and that the sponsor believes the signatures to be those of the persons whose names they purport to be.

E. The borough clerk shall review the petition and determine whether the petition is legally sufficient and whether the requisite number of signatures was validly obtained. If the petition is legally sufficient and contains a sufficient number of valid signatures, the clerk shall certify the petition. If the petition does not contain a sufficient number of valid signatures, the director shall return the petition to the sponsors who shall then have 10 days in which to obtain and submit additional signatures to the director. If the petition still does not contain a sufficient number of valid signatures, or if the petition is otherwise legally insufficient, the clerk shall reject the petition. No person may file an application for petition for an area which includes all or any part of the area proposed for dissolution under a petition which was rejected, sooner than 180 days after the date of rejection.

F. The borough mayor shall cause to be made a review of the debts, functions, and other relevant information concerning the service area to be dissolved, and shall advise the commissioners of the service area that if any operating and/or capital moneys held by the borough for the account of the service area are not spent prior to the effective date of dissolution, said moneys will be disposed of by ordinance according to origin. The mayor shall report the results of the review to the assembly, and upon receipt of the mayor’s report, the assembly shall introduce and consider an ordinance to dissolve the service area.

G. If voters reside within a service area that provides road, fire protection, or parks and recreation services, dissolution of the service area is subject to approval by a majority of the voters residing in the service area who vote on the question. However, this vote shall not be required for dissolutions of service areas in which:

1. Taxes have not been levied in the service area for road maintenance or construction during the last 12 months and there is no balance in any account available to pay for these road services for the service area;

2. During the last 12 months the service area commission has not legally met with a quorum present;

3. There are no road maintenance contracts in effect for the service area; or

4. Existing road maintenance contracts fail to provide for minimum road standards required by law that are necessary to protect the borough from civil liability.

H. All unexpended and unencumbered operating and capital moneys held by the borough for the account of a road service area which dissolves in accordance with this section, as determined by the financial records of the borough on the date of dissolution, shall be paid to the appropriate bodies as deemed by the assembly.

I. Dissolution of a service area shall not be effective prior to the date on which the chief financial officer certifies that all receivables of the service area, including but not limited to property taxes and special assessment charges, and all payables of the service area, including but not limited to repayment of loans to the general fund and contract payments to vendors, both as established by the financial records of the borough, have been satisfied.

J. The assembly may levy taxes, charges or assessments on the property within a service area which has dissolved, after the date of dissolution, in order to fund the payment of debts, obligations or contingent liabilities arising out of the operation of the service area which mature and become due and owing after the date of dissolution. (Ord. 2017-04 § 2, 2017; Ord. 2006-07 § 3, 2006; Ord. 2001-65 § 8, 2001; Ord. 86-091 §§ 2, 3, 1987. 2004 Code § 14.01.156. Formerly 14.04.180.)

14.08.040 Process for alteration of a service area boundary or dissolution without voter approval – Road service areas.

Alteration of a road service area boundary or dissolution without voter approval shall be subject to the following process:

A. The rural services division shall:

1. On or before October 1st of each year, compile a list of road service areas that are subject to an alteration of a service area boundary or dissolution without voter approval.

2. Use their discretion to determine who, under the circumstances, should receive notification that the road service area is subject to a boundary alteration or dissolution without voter approval. The notification letter shall identify the action necessary to avoid potential alteration of boundaries or dissolution.

3. Upon request, to the extent feasible, assist the road service area commission or citizens with any or all appropriate actions necessary to support or avoid potential alteration of boundaries or dissolution.

4. Mail notice of public hearing on any alteration or dissolution ordinance to each landowner, as shown on the current property tax assessment roll, within the area proposed to be annexed, removed or dissolved.

B. All action, including any tax elections, necessary to avoid potential dissolution must be completed by April 30th of the following year. Thereafter, the administration shall, by introduction of a suitable ordinance, notify the assembly of all initially listed road service areas that on April 30th of the following year still meet the standard for dissolution without voter approval.

C. If a road service area has a fund balance, no dissolution without voter approval shall be effective until the service area spends down its fund balance to under $500.00 or until the end of the next fiscal year, whichever occurs first. During this wind-down period the mill rate shall be set only at the minimum amount necessary to pay the administrative fee. If any funds remain at dissolution those funds shall be paid to the Fairbanks North Star Borough’s road service revolving loan fund. (Ord. 2017-04 § 3, 2017; Ord. 2014-39 § 3, 2014; Ord. 2013-58 § 2, 2013; Ord. 2006-07 § 5, 2006. 2004 Code § 14.01.160. Formerly 14.08.030)