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Chapter 3.29 - Annexation Improvements Fund

3.29.010 Establishment
There is established a special fund of the City of Lakewood to be known as the annexation improvements fund. (Ord. O-90-46 § 1 (part), 1990).

3.29.020 Purpose
The annexation improvements fund shall be a special fund consisting of no revenue other than a portion of the sales taxes generated and collected from certain annexed property. The fund shall be used to reimburse an annexor for all or part of the public or public-related improvements constructed by an annexor as specifically set out in an annexation agreement with an annexor. The City Council specifically finds and determines that creation of the annexation improvements fund is consistent with the city's powers as a home rule municipal corporation, and that exercise of said powers in the manner set forth herein is in furtherance of the public health, safety and welfare. Notwithstanding any provision hereof, the city shall never be a joint venture in any private entity or activity which participates in the annexation improvements fund, and the city shall never be liable or responsible for any debt or obligation of any annexor participating in the annexation improvements fund. (Ord. O-90-46 § 1 (part), 1990).

3.29.030 Definitions
As used in this chapter, and all sections thereof, the following phrases shall have the following meanings:
"Administrative costs" means all engineering, legal, financing and other reasonable costs of a similar nature associated with the construction or installation of public or public-related improvements.
"Annexation agreement" means an agreement between the City of Lakewood and an annexor setting forth the terms and conditions by which an annexor's property is or was annexed to the city.
"Annexed property" means that property annexed to the City of Lakewood pursuant to an annexation agreement.
"Annexor" means a person or persons or entity that has entered into an annexation agreement with the City of Lakewood.
"Fund" means the annexation improvements fund created by the provisions of this chapter. (Ord. O-90-46 § 1 (part), 1990).


3.29.040 Eligibility to receive moneys
Eligibility to receive moneys from the fund shall be based upon approval by the City Council, exercising its legislative discretion in good faith. Any annexor of a retail sales tax generating business or location, or the annexor of property where a proposed retail sales tax generating business will be located, may receive moneys from the fund for constructing public or public-related improvements only if such agreement is specifically stated in an annexation agreement and sales tax revenues are generated from the annexed property. (Ord. O-90-46 § 1 (part), 1990).

3.29.050 Public purpose
The uses to which the moneys from said fund may be put by an annexor shall be strictly limited to those which are public or public-related in nature. Excess moneys in the fund may be transferred by the city from time to time to the city's general fund. In this chapter, public or public-related improvements shall mean improvements, including but not limited to streets of all types, sidewalks, curbs, gutters, asphalt pavement, concrete pavement, survey monuments, pavement striping, rights-of-way, easements, access rights, construction plans, medians, bridges, pedestrian malls, street lights, on-site and off-site drainage facilities, water lines, sanitary sewer lines, landscaping, decorative structures, statuaries, fountains, identification signs, traffic safety devices, pedestrian/bicycle paths, off-street parking facilities, benches, restrooms, information booths, public meeting facilities, parks, open space, hazardous waste cleanup, historic renovation, facades, demolition, excavation, and renovation of public or public-related improvements, and all necessary, incidental, and appurtenant structures and improvements, together with the relocation and improvement of existing utility lines, and administrative costs (provided that the reimbursement of such administrative costs shall be limited to twenty percent of the total cost of the project), and any other improvements of a similar nature which are specifically approved by the City Council upon a finding by the Council that the improvements are public or public-related improvements, and that such improvements shall enhance the competitive position of the annexor within the Denver metropolitan area marketplace. (Ord. O-90-46 § 1 (part), 1990).

3.29.060 Annual disbursements
Disbursements to the annexor from the fund shall be determined on an annual basis for actual expenditures for improvements unless otherwise provided in the annexation agreement. Payment of the annual amount shall be due on February 15th of the year following the year within which such expenditures were made unless otherwise provided in the annexation agreement. Except for administrative costs, as a condition precedent to reimbursement from the fund the annexor must submit copies of at least three bids and certify to the city that the work was performed by the lowest responsible bidder. Then, upon presentation to the city of receipts or proof of payment in form satisfactory to the city evidencing payment for authorized public improvements, the annexor shall be eligible for reimbursement from the fund. (Ord. O-90-46 § 1 (part), 1990).


3.29.070 Accounting system
The City Council has determined that existing sources of city sales tax revenues shall not be used, impaired, or otherwise affected by the fund. It shall be the affirmative duty of the Director of Finance of the City of Lakewood to collect all sales taxes generated from the annexed property and deposit all but those portions of such taxes expressly excluded by the annexation agreement in the annexation improvements fund as a special fund apart from the sales tax generated by and collected from other sales tax generating uses and businesses within the city. The Director of Finance shall provide an accounting system which accomplishes the purpose of this section. It is conclusively stated by the City Council that this chapter would not be adopted or implemented but for the provisions of this section. Should the registered electors of the city vote to increase the city sales tax, such increase may not be deposited in the annexation improvements fund for any property annexed prior to such increase. (Ord. O-90-46 § 1 (part), 1990).

3.29.080 Approval by City Council-Criteria
The City Council shall consider the following criteria in determining whether to approve participation in the fund by an annexor:
A. The amount of sales tax which is reasonably expected to be derived by the city through new retail sales tax generating business within the annexed property;
B. The public benefits which are provided by the annexor, including, but not limited to, additional public or public-related improvements, additional employment for residents, and other identifiable public benefits;
C. The amount of expenditures on public improvements which may be deferred by the city based upon public or public-related improvements to be constructed by the annexor;
D. Conformance of the annexation agreement with the requirements of Section 3.29.090. (Ord. O-90-46 § 1 (part), 1990).


3.29.090 Annexation agreement-Contents
A. An annexation agreement may describe public or public-related improvements to be constructed by the annexor and the amount the annexor may be reimbursed for such construction from the sales tax derived from the annexed property; provided, however, that the annexor may use said amount only for the public or public-related improvements which are expressly stated in the annexation agreement. If the City Council approves the use of fund moneys for construction of public or public-related improvements contained in an annexation agreement, a separate public improvements agreement between the annexor and the city may still be required in conformance with the ordinances and procedures of the city. Each annexation agreement shall at a minimum contain:
1. A list of those public or public-related improvements for which the annexor shall receive reimbursement from the fund, and the amount which the annexor shall receive as reimbursement from the fund for such public or public-related improvements;
2. The maximum amount of sales taxes to be shared, and the maximum time during which sharing shall continue, it being expressly understood that any such agreement to share shall expire and be of no further force and effect upon the occurrence of the earlier to occur of the lapse of the maximum time of the agreement (whether or not the maximum amount to be shared has been reached) or the expenditure of the maximum amount to be shared (whether or not the maximum time set forth has expired); and
3. An affirmative statement that the obligations, benefits, and/or provisions of said agreement may not be assigned in whole or in any part without the express authorization of the City Council and further that no third party shall be entitled to rely upon or enforce any provision of the agreement.
B. An annexation agreement may provide for a service extension charge to the annexor for costs incurred in extending municipal services to the annexed property. In the event such a service extension is established, sales taxes received from the property must exceed the amount of the service extension charge before reimbursement may be made for the public or public-related improvements.
C. Any annexation agreements entered into prior to July 1, 1990, shall be given full force and effect notwithstanding any noncompliance with the provisions of this chapter. (Ord. O-90-46 § 1 (part), 1990).