JOINT LEGISLATIVE COMMISSION ON MUNICIPAL INCORPORATIONS REPORT TO THE GENERAL ASSEMBLY OF NORTH CAROLINA Proposed Village of Corolla June 23, 2007 REPORT TO THE GENERAL ASSEMBLY Proposed incorporation af the Village of Gralla June 25, 2007 The Joint Legislative Commission on Municipal Incorporations wes ‘created in 1986 by the General Assembly to conduct an independent review and evaluation of proposed municipal incorporations. This eveluation, to be conductad in accordance with a statutory set of objective criteria. is designed to allcw the General Assembly to sce Ihe feasibilty of the proposed new Municipality. The Commission consists of four members of the General Assembly, one ely official, and one county official, A list of members appears as Appendix A, The statutory criteria raquire a review of community support (a petition is required). population, land development, neamass to other urban areas, and abiity fo provide municipal services at a reasonable tax rate. A copy of the statutes authorizing the Commission and setting up the review standards is attached as Appendix B. ‘The Commission received a petition proposing the incorporation af the Vilage of Corolla in Currituck County on October 30, 2008. A copy of the petition is attached as Appendix C. The Commission. pursuant to G.S. 120-181, asked the Daision of Community Assistance af the Departinent of Commerce to evaluate the pettion. ‘The Division conducted the evaluation and, based upon its report, the Commission found that the requirements of G.S. 120-163 and G.S. 120-164 had been met (a copy ofthe report is altached as Appendix D). ‘The Commission also equested that the Division of Community Assistance evaluate the proposed Village's petition for incorporation under &.S, 120-188 {a copy of the report is attached as Appendix E). Tha Division conducted the evaluation and datermined that the statutory requirements had been met. The Commission further requested that the Division of Community Assistance evaluate the proposed Vilage’s petiion under G.S. 120-167 through GS. 120-170 (a copy of the report is attached as Appendix F). The Division conducted the evaluation and determined that all statutory eequirements had been met. Pursuant to G.S. 120-168.1, the Commission requested that the Fiscal Research Division of the General Assembly provide data that shows the impact fon ather municipalities and counties of the diversion of already levied taxes or State-shared revenues (0 suppart services in the proposed Village of Coralla (a copy of the report is attached as Appendix G). The data provided by the Division (based upon figures from 2005-2008) shows that sales tax-revenue in Currituck County is distributed on a per capita basis. Ifthe proposed Vilage of Coralia had been incomorated at that time, it would have reoeWved approximately $210,687 in sales tax revenues, assuming an estimated permanent population of 600 residents. The incomoration-of Corolla would have @ marginat impact on the distribution of Powell Bil funds in the State and Currituck County. If incorporated in 2005-2008, the proposed Vilage of Corolla would imave received approximately $345,000 in other forms of reverie, inciuding Powell Bil funds. from the State as Jong as the proposed Village had met the statutory requirements to receive those funds. On Friday, June 1, 2007, the Commission held a public hearing at the Outer Banks Center for Wildlife Education in Corolla, North Carolina to receive comment fiom the public about the incorporation of the proposed Village of Corolla. Approximately 24 people spoke in favor of incorporation: 47 against ‘The Commission finds that the proposed Village of Corolla doos not meet the standards required hy Article 20 of Chapter. 120 of the Gonoral Statutes, and therefore the Commission does not recommend incorporation of the area as the Village of Corolla. Of particular concem to ‘the Commission were the following: (i) concerns about population density; elsar dissent among members of the Currituck County Board of Commissioners on the question ef incorporation; (I) the fact that permanent residents constitute only a small portion of proporty oumars; and (Iv) the overwhelming opposition to the incorporation from non- residents property owners. APPENDIX & JOINT LEGISLATIVE COMMISSION ON MUNICIPAL INCORPORATIONS. 2004-2006 Membership President Pro Tema Appointments Speaker's Appointments ‘Senator Fletcher Hartsell Representative Becky Carney P.O, Box 388 P.O, Box 32873 Concord, NG 28026-0368 Charlotle, NC 28232 ‘Senator Vemon Malone Representative Wilkam Wainwright 2424 Lyndhurst Dr. P.O. Box 941 Raleigh, NC 27610, Havelock, NC 28532 Mr. Steven Raper Mr. Mike Cross P. 0. Box 1180 Chatham County Commissioner Rooky Mount. NC 27602-1160 388 Cross Point Road [email protected] us News Hill, NC 27662 (82) 972-1228 Staff Logislative Assistant Gayle | Moses, Staff Attorney Delta Prine Bill Dratting Division 2128 Legislature Bullding Raleigh, NC Gerry Cohen, Direstor 919-733-664e Bill Drafting Division Olver Bass Dept of Commerce, Division of Community Assistance 733-2853 APPENDIX Antiole 20. Joint Legislative Commission on Municipal Tnearporations. Part (. Organization, § 120-158. Creation of Commission, (@) Thore is created the Taint Tegistative Commission on Municipal Tnearporations, referved to in this Article as "Commission" (e)— The Commission shall consist of six members, appointed as follows: (1) Tie Scnatars appointed by the Presidant Pro Tempore of the Senare: 2) Two House members appointed by the Speaker: (3) One city manager or elected city afficial, appointed by the President Pro Tempore af the Senate fram a list of three eligible persons nominated by the North Carolina League of Manicipalities; and (4) One county commissioner or coumy manages, appointed by the Spaaker Irom a list of three eligible persons nominated by the Narth Carctina Assoviation of County Commnissioness. (1985 (Reg. Sess., 1986), 1003, 8,1; 1991, 739, s, 17) § 120-159. Terms. ‘Members shall be appointed for terms ending Tune 30, 1987, and subsequently for woeycar terms beginning Iuly 1, 1987, and.bienniaify thereatter. A member eligible vhcn appointed may eontinue for the reminder of the term. regardless-of the member's continued eligibility for the category. The Comunission shall eleot a chairman thom its membership for a one-year term. (1985 (Reg, Sess, 1986), . 1003. 5. 1 § 120-160. Compensation ‘Members of the Commission who ure momiburs of the Genoral Assembly shall receive subsistence and travel allowances as provided by G.S. 120-3.1, Members who are State officess or employees shall receive subsistence and travel ullowances as provided by G.S. 138-6. All other members shall receive pur diem, subsistenee, and travel allowances as provided by GS. 138-5. (1985 (Reg. Soss., 1986} ¢. 1003, s. 1.) § 120-261. Facilities and staff. The Commission may meet in the Legislative Building or the Legislative Office Buildiog, Steff for the Commission shall be provided by the Legislative Services Comunission, The Commission may contract with the Institute of Government, the Local Government Commission, the Department of Environment and Natural Resourees, or collier agencies as may be necessary in completing any required studics, within the funds appropriated to the Commission. (1985 (Reg. Sess, 1986), c. 1003, s. 1; 1989, c. 727, s. 218(U2) 1997-483, 5, HA.119@)), § 120-162. Reserved for future couifieativa purposes. Part 2, Procedure for Incorporation Review’ GS.1IMSB Page? § 120-163, Petition, (a) The process af secking the recommendation of the Comunission is commenced by filing with the Commission a pctition signod by fifeen percent (15%) of the registered vvorers af the area proposed to be incorporated, but by no: ess than 25 registered voters of that arce, asking for incorporation. The voter shall sign the petitiow and also clearly print thar voter's name:adjacent to the signature. The petition mast also contain the voter's rosidenes address and.date of bith (b) The petition must be verified by the county board of elections of the county where the votzr is alleged to be registered. The hoard of elections shall canse to be ‘examined the signature, shall place a check raark beside the name of each signer who is ‘quulified and registered to vote in thet comaty in the acea proposed to be ineorporaied, end shall attach co the petitinn a certificate stating the number of voters registered in that county in the area proposed to be inearporased, and the fotal number of rexistered veers, whe fave been werd, the county boaed of elections shalt retin the petition 00 the person who presented i within 15 working days of reveipt. Tha period uf 15 working, stays shall be toiled for any peciod of time chat is also either two weeks before or one week uller a primary or election being conducted by the couaty board of elections. (c} The petition must include a proposed naste far the city, 3 oiap ofthe city, alist of proposed services to be provided by the proposed raunicipaity, the names of three persons to serve as interim governing board, @ proposed clhurter, ¢ statement of the estimated population, assessed valuation, degree of development, population density, and recommendations as to the form of government and manner of ection. The petition must contain a statement that the proposed municipality will have a budget ordinance with wn ad valorem tax levy of al least Live cents (56) om the une hundred dotter (ST0.00) ‘valuation upon all taxable property within its corporate Hits. The petition must contain & statement that the proposed municipality will oller four of the following services no laler than the first day ofthe thitd fiscal year following the effective date of the incorporation: {i} police protection; (i) fire protection: (ii) solid waste collection or disposal; iv) water clistriburiony (W} steeer maintenance: (vi) street construction or right-cfway acquisition; (vit) stceet lighting; and (viii} zoning. in order to qualify for providing police procection. lhe propused municipality toust propose either ta provide police service or te have services provided by contract with a county or another municipality chat proposes that the ther goverminent be compenseced for providing supplemental protectian. he proposed. municipality may not contain atyy doacontiguous areas (@) ‘The petitioners avast present to the Commission the verified petition fiom the county board of elections, (©) A pelition must be submited to the Commission at least 60 days prior io convening of the next regular session of dhe General Assembly in onder for the Commission (o make & recommendation 10 that session, (1985 (Reg, Sess.. 1986), ¢. 1003, s. 1; 1999-458, s. 15 2001-353, 6.) § 120-164, Notification (a) Not later than five days before submining the petition to the Commission, the petitioners shall nolily: GS. 120-158 Page 2 (2) The board or boatds of county commissioners of the enunty or enunties where the proposed nunicipality is located; (2) Allcities within that conn oF counties: and (3) All cies in any other coum that ate within five miles of the proposed municipality of thc intent ta present the petition fo ee Commission: (&) The petitioners shall also nublish, one per week for Lo cumsevutive weeks, swith the second publication no later than seven days belore submitting the petition to the Commission, notice in a newspaper af general circulation in he ate propused to be incorporatcd of the intent to present the petition zo the Cammission, {1988 (Rey. Sess. 3986), ¢. 1003, 5. 1) § 120-168. Lnitiat inquiry. (@) The Commission shall, apon receipt of the petition, determine it Ge requirements of G.S, 120-163 and G.S, 120-164 have been met. [fit deverzznes that those requirements fave not been ane, # shall retum the petition to the petitioners. The Commission shall also publish iv the North Caroling Reyister notiee thal it his received the potition (bj I0it determines thal those requirements have been mel, it soull conduct Lerther inquiry ws provided by this Part, (1985 (Reg, Sess., 1986}, c. L003, 5.1.) § 120-166. Additional criteria; nearness to anotier municipality. (2) The Commission msy noi muke « positive recommenthtion il the proposed municipality is located within one rnile of munivipulity of 5,000 w 9,999, séithin tree miles ofa municipality of £0,000 0 24,999, within four-mies of a municipality of 25,000 1» 49,999, or within five miles ol'a municipality of 30,000 or ever, according to the most recent decennial federal eensus, or according te the most revent anual estimate of the Office of State Budgct and Management if the municipality was incorporated since the {b) Subsection (2) of this scction docs not apply in the case of proximity to 2 spotifie municipality if Q)_Yhe proposed menicipality & entirely on an island that the nearby city is not on 2) The proposed municipality is separated by a miajor river or othe natural barter from the neneby city, such thot. provision of sounicipal services, by the nearby city to the propased municipality is infeasible or the cost is prohibitive, aud the Commission shall adopt policies 10 implement this subdivision: (3) ‘The municipalities within the distances described in subsection (2) of this section by resofution express their approval of the incorporation; or (An area of at least fifly percent (50%) of the proposed municipality has petitioned for annexation to the nearby city undet G.S, 1608-31 within the previous 12 months before the incorporation petition is submitted to lhe Commission fut the énntenution pelition was oot approved. (1985 G8. 5158 PageS (Reg, Sess. 1986), c. 1003, s, 1: 1989 (Rep. Sess., 1990}, c. 102 1998-150, s, 2; 200-140, 5, 93.1(@; 2001-434, s. 12.206): 200: 23 § 120-167. Additional criteria; population. The Commission may not make @ pstive recommencation unless the proposed municipality has a permanent population of at ieast 100 and a population density (ether ‘permanent or seasonnl} of at least 250 persons per square mile. (L985 (Reg. Sess., 1986), ©. 1003, , 1: 1999-458, 8.2 § 120-168. Additional eriteria; development. The Commaission may mot make a positive recommendation uniess tory. percent (40%) of the area is developed fir vesidentinl, commercial, industrial, institutional, or governmental uses, or is dedicated as open space miter the provisions of 2 7oning ordinancs, subdivision otdinance, conditional ot special use permit, or recatded restrictive covenants. (1985 (Reg, Sess. 1946}, 6. 1003.8, 1: 1999-456, 6.3.) § 120-169, Additional eriterin; area unincorporated. “The Cammission may not make a positive recommendation if any of the proposed snunicipalty is included within the bounda rated snnaicipality, a3 Yetined by GS. 1334-11) Es ee Fi spot inte af apathy thanos 3 ibe Cegerah Staroygs (1988 Reg. Sess., 1986), c. HOUR, 5:1; 2005-35, § 120-168.1. Additional eritorias level of development, serviecs; financial impact om ‘ther local governments. (a) Repealed by Session Tams 1999-458, 6 4. () Services, ~ The Commission may nor mae a positive recornmendation unless the arca to be inoorporated subsoils a plan for providing a reasonable level of municipal services. This plin shall be based on the proposed services sisted in the petition under GS. 120-1636). (©) Thc Commission ia its report shall icdicate che impact on other municipalitiss and counties of diversion of already Jevied local taxex or State-shated revenucs from existing local governments tb support services In the proposed ununicipalicy. (1998-150, 5.3: 1999. } § 120-170, Findings as to services. ‘he Commission may not maks a positive recommendation unless it finds that the proposed smunicipality can provide at a reasonable lnx rile the services cequested by the petition, and finds that the proposed vnunicipalily van provide ata resonable tac rate the types of services usnally provided hy similar municipalities. To making findings under this section, the Commission shall take foto account municipal services already being pravided, (1985 (Reg. Sess, 1986), ¢. 1003. 8. 1) § 120-171. Procedures if findings made. {a) If the Commission finds that i may not make a positive recommendation ‘because of the provisions of GS. 120-166 through G.S. 120-170, it shall make a negative recommendation to the General Assembly. The repor to the General Assembly stall Tish the groonds on which a negative recommendation is made, along with specific findings. GS. 120-158, Page 4 Tf a negative recommendation is made, the Commission shall netify the petitioners of the need for a fegally suficient description of the proposed municipality if fhe proposal is We he consideced by the Gerieral Aserobly, At the request oi'a majority of the members of the Incetim ord named id the potion, the Cuinmnission may conduc a public hearing and forvatd any comments ot findings mate as a result of that bearing along with the negative recommendation. (b} Hehe Commission determines thet it will nol bs bared from making a positive recommendstion by GS, 120-166 thtongh G.S. 120-170, it shall roquire that petitioners have a legally sufficient description of the proposed mumicfpality prepared at their expense as a condition ofa pasitive recomunendaticn. (6) Af the Commission determines that it is not barred ftom making a positive recorunénlatioa, it shall mtke a positive recommendation to the General Assembly for incomorition, (2) ‘The repost of the Commission en a petition shall be in a Form determined hy the Commission to be uscll fo the General Assembly. (1985 (Reg. Sess. 1986), ¢. 100 SL) § 120-172. Referendum, Bosed on inlocmotion received al the public hearing, the Commission may recommend that any incerporalion aol passed by the Gonoral Assembly shall be submitted to a referendum, cxcent if the petition contained the signatures of fifty percent (50%) of registered voters the Commissien shall not recommend a referendum. (1985 (Reg. Sess.. 1986), ©. 1003,. 1) § 120-173, Modification of petition, ‘With the agrccment of the majority of the persons designated by the petition as an interim governing boaté, the Commission may submit to the General’ Assembly recommendations based on deletion of areas from the petition, as long as there are no taoacontignous areas. (1985 (Reg. Sess., 1986), c. 1008, <1.) § 120-174, Deadline for recommendations. If the petition is timely received under G.S, 120-163(e). the Commission stull make its recommendation to the General Assernbly no Inter than 60 days after convening of the text regular session after submission of the petition: (1985 (Reg. Sess., 1986), ¢, 1003, s. 1) {§§ 120-175 through 120-179. Reserved for future codification purposes. G5, 120-158 Page $ APPIMET KX 6 d fa People of Corotta for IncorparfijonLEGISLATIVE ;% Robert P. Collins, Chair 3: 1024 Lighthouse Drive Corolla, NC 27927 (252) 453-4060 October 30, 20085 ‘NC Joint Legislative Commission on Munivipal Incorporations Artentioa: Suuf¥ Zirisou Gayle Moses Legislative Otlice Building, Bill Drafting Division 301 North Salisbury Steet Raleigh NC 27603, Des Con:mission Mernbars Included herewith is the Petition for Incorporation of Corals, Nom Cerolina submitted by the People of Cerelta for incorporation. ‘The People of Corolla for Incorporation have studied, rescerched, and discussed ‘ncorporition since 21413, A vast rasjonity of our residents support inconperation, We hnave an abundance uf actively employed, semi-retired, and retired poulessionals corporate executives, and business men and women who are willing fo sfep forwnrd to sttovide the lemlership to guide our municipality dnsiag the eatly dayn of incorporation and into the future. We mect all the requirements for inempocation ia Chapter 120 and other ‘municipal laws ia the North Carolina General Statutes. ‘The People of Corolla for Incorporation axe nxt appreciative for the assistance provided hy Representative Bill Owens and his staff, Senulor Mare Basnight and his ssaff, ond Ms, Gayle Motes, your suff lisison of the Legislative Bill Drsiting Division, We invite you to visit Corolla tn see firsthand why avconporation is in the bost ‘meres of our permanent and seasonal residents, Please let us new if we can pruvide pettonsl tastimoay as you consider out Petition, Respectitly yours, FEORLE OF COROLLA FOR INCORPORATION (Cee? Cl. Robert P- Collins, Chair Pe: Representative Oven. Senator Basight