§ 160A-37. Procedure for annexation.

§ 160A‑37.  Procedurefor annexation.

(a)        Notice of Intent. –Any municipal governing board desiring to annex territory under the provisionsof this Part shall first pass a resolution stating the intent of themunicipality to consider annexation. Such resolution shall describe theboundaries of the area under consideration, fix a date for the publicinformational meeting, and fix a date for a public hearing on the question ofannexation. The date for the public informational meeting shall be not lessthan 45 days and not more than 55 days following passage of the resolution. Thedate for the public hearing to be not less than 60 days and not more than 90days following passage of the resolution.

(b)        Notice of PublicHearing. – The notice of public hearing shall:

(1)        Fix the date, hourand place of the public informational meeting and the date, hour, and place ofthe public hearing.

(2)        Describe clearly theboundaries of the area under consideration, and include a legible map of thearea.

(3)        State that the reportrequired in G.S. 160A‑35 will be available at the office of the municipalclerk at least 30 days prior to the date of the public informational meeting.

(4)        Include anexplanation of an owner's rights pursuant to subsection (f1) and (f2) of thissection.

Such notice shall be given bypublication once a week for at least two successive weeks prior to the date ofthe informational meeting in a newspaper having general circulation in themunicipality and, in addition thereto, if the area to be annexed lies in acounty containing less than fifty percent (50%) of the land area of themunicipality, in a newspaper having general circulation in the area of proposedannexation. The period from the date of the first publication to the date ofthe last publication, both dates inclusive, shall be not less than eight daysincluding Sundays, and the date of the last publication shall be not more thanseven days preceding the date of public informational meeting. If there be nosuch newspaper, the municipality shall post the notice in at least five publicplaces within the municipality and at least five public places in the area tobe annexed for 30 days prior to the date of public informational meeting. Inaddition, notice shall be mailed at least four weeks prior to date of theinformational meeting, by first class mail, postage prepaid to the owners asshown by the tax records of the county of all freehold interests in realproperty located within the area to be annexed. The person or persons mailingsuch notices shall certify to the governing board that fact, and suchcertificate shall become a part of the record of the annexation proceeding andshall be deemed conclusive in the absence of fraud. If the notice is returnedto the city by the postal service by the tenth day before the informationalmeeting, a copy of the notice shall be sent by certified mail, return receiptrequested, at least seven days before the informational meeting. Failure tocomply with the mailing requirement of this subsection shall not invalidate theannexation unless it is shown that the requirements were not substantiallycomplied with.

If the governing board byresolution finds that the tax records are not adequate to identify the ownersof some or all of the parcels of real property within the area it may in lieuof the mail procedure as to those parcels where the owners could not be soidentified, post the notice at least 30 days prior to the date of publicinformational meeting on all buildings on such parcels, and in at least fiveother places within the area to be annexed. In any case where notices areplaced on property, the person placing the notice shall certify that fact tothe governing board.

(c)        Action Prior toInformational Meeting. – At least 30 days before the date of the public informationalmeeting, the governing board shall approve the report provided for in G.S. 160A‑35,and shall make it available to the public at the office of the municipal clerk.In addition, the municipality may prepare a summary of the full report for publicdistribution. In addition, the city shall post in the office of the city clerkat least 30 days before the public informational meeting a legible map of thearea to be annexed and a list of the persons holding freehold interests inproperty in the area to be annexed that it has identified.

(c1)      Public InformationalMeeting. – At the public informational meeting a representative of themunicipality shall first make an explanation of the report required in G.S.160A‑35. Following such explanation, all persons resident or owningproperty in the territory described in the notice of public hearing, and allresidents of the municipality, shall be given the opportunity to ask questionsand receive answers regarding the proposed annexation.

(d)        Public Hearing. – Atthe public hearing a representative of the municipality shall first make anexplanation of the report required in G.S. 160A‑35. Following suchexplanation, all persons resident or owning property in the territory describedin the notice of public hearing, and all residents of the municipality, shallbe given an opportunity to be heard.

(e)        Passage of theAnnexation Ordinance. – The municipal governing board shall take intoconsideration facts presented at the public hearing and shall have authority toamend the report required by G.S. 160A‑35 to make changes in the plansfor serving the area proposed to be annexed so long as such changes meet therequirements of G.S. 160A‑35. At any regular or special meeting held nosooner than the tenth day following the public hearing and not later than 90days following such public hearing, the governing board shall have authority toadopt an ordinance extending the corporate limits of the municipality toinclude all, or such part, of the area described in the notice of publichearing which meets the requirements of G.S. 160A‑36 and which thegoverning board has concluded should be annexed. The ordinance shall:

(1)        Contain specificfindings showing that the area to be annexed meets the requirements of G.S.160A‑36. The external boundaries of the area to be annexed shall bedescribed by metes and bounds. In showing the application of G.S. 160A‑36(c)and (d) to the area, the governing board may refer to boundaries set forth on amap of the area and incorporate same by reference as a part of the ordinance.

(2)        A statement of theintent of the municipality to provide services to the area being annexed as setforth in the report required by G.S. 160A‑35.

(3)        A specific findingthat on the effective date of annexation the municipality will have fundsappropriated in sufficient amount to finance construction of any water andsewer lines found necessary in the report required by G.S. 160A‑35 toextend the basic water and/or sewer system of the municipality into the area tobe annexed, or that on the effective date of annexation the municipality willhave authority to issue bonds in an amount sufficient to finance suchconstruction. If authority to issue such bonds must be secured from theelectorate of the municipality prior to the effective date of annexation, thenthe effective date of annexation shall be no earlier than the day following thestatement of the successful result of the bond election.

(4)        Fix the effectivedate for annexation. The effective date of annexation may be fixed for any datenot less than 40 days nor more than 400 days from the date of passage of theordinance.

(f)         Effect ofAnnexation Ordinance. – Except as provided in subsection (f1) of this section,from and after the effective date of the annexation ordinance, the territoryand its citizens and property shall be subject to all debts, laws, ordinancesand regulations in force in such municipality and shall be entitled to the sameprivileges and benefits as other parts of such municipality. Real and personalproperty in the newly annexed territory on the January 1 immediately precedingthe beginning of the fiscal year in which the annexation becomes effective issubject to municipal taxes as provided in G.S. 160A‑58.10. If theeffective date of annexation falls between June 1 and June 30, and theeffective date of the privilege license tax ordinance of the annexingmunicipality is June 1, then businesses in the area to be annexed shall beliable for taxes imposed in such ordinance from and after the effective date ofannexation.

(f1)       Property Subject toPresent‑Use Value Appraisal. – If an area described in an annexationordinance includes agricultural land, horticultural land, or forestland thatmeets either of the conditions listed below on the effective date ofannexation, then the annexation becomes effective as to that property pursuantto subsection (f2) of this section:

(1)        The land is beingtaxed at present‑use value pursuant to G.S. 105‑277.4.

(2)        The land meets bothof the following conditions:

a.         On the date of theresolution of intent for annexation it was being used for actual production andis eligible for present‑use value taxation under G.S. 105‑277.4,but the land had not been in use for actual production for the required timeunder G.S. 105‑277.3.

b.         The assessor for thecounty where the land subject to annexation is located has certified to thecity that the land meets the requirements of this subdivision.

(f2)       Effective Date ofAnnexation for Certain Property. – Annexation of property subject to annexationunder subsection (f1) of this section becomes effective as provided in thissubsection:

(1)        Upon the effectivedate of the annexation ordinance, the property is considered part of the cityonly (i) for the purpose of establishing city boundaries for additionalannexations pursuant to this Article and (ii) for the exercise of cityauthority pursuant to Article 19 of this Chapter.

(2)        For all otherpurposes, the annexation becomes effective as to each tract of the property orpart thereof on the last day of the month in which that tract or part thereofbecomes ineligible for classification pursuant to G.S. 105‑277.4 or nolonger meets the requirements of subdivision (f1)(2) of this section. Untilannexation of a tract or a part of a tract becomes effective pursuant to thissubdivision, the tract or part of a tract is not subject to taxation by thecity under Article 12 of Chapter 105 of the General Statutes nor is the tractor part of a tract entitled to services provided by the city.

(g)        SimultaneousAnnexation Proceedings. – If a municipality is considering the annexation oftwo or more areas which are all adjacent to the municipal boundary but are notadjacent to one another, it may undertake simultaneous proceedings underauthority of this Part for the annexation of such areas.

(h)        Remedies forFailure to Provide Services. – If, not earlier than one year from the effectivedate of annexation, and not later than 15 months from the effective date ofannexation, any person owning property in the annexed territory shall believethat the municipality has not followed through on its service plans adoptedunder the provisions of G.S. 160A‑35(3) and subsection (e) of thissection, the person may apply for a writ of mandamus under the provisions ofArticle 40, Chapter 1 of the General Statutes. Relief may be granted by thejudge of superior court

(1)        If the municipalityhas not provided the services set forth in its plan submitted under theprovisions of G.S. 160A‑35(3)a on substantially the same basis and in thesame manner as such services were provided within the rest of the municipalityprior to the effective date of annexation, and

(2)        If at the time thewrit is sought such services set forth in the plan submitted under theprovisions of G.S. 160A‑35(3)a are still being provided on substantiallythe same basis and in the same manner as on the date of annexation of themunicipality.

Relief may also be granted bythe judge of superior court

(1)        If the planssubmitted under the provisions of G.S. 160A‑35(3)b. require theconstruction of major trunk water mains and sewer outfall lines and

(2)        If contracts forsuch construction have not yet been let.

If a writ is issued, costs inthe action, including a reasonable attorney's fee for such aggrieved person, shallbe charged to the municipality.

(i)         No resolution ofintent may be adopted under subsection (a) of this section unless the citycouncil (or a planning agency created or designated under either G.S. 160A‑361or the charter) has, by resolution adopted at least one year prior to adoptionof the resolution of intent, identified the area as being under considerationfor annexation and included a statement in the resolution notifying personssubject to the annexation of their rights under subsections (f1) and (f2) ofthis section; provided, adoption of such resolution of consideration shall notconfer prior jurisdiction over the area as to any other city. The areadescribed under the resolution of intent may comprise a smaller area than thatidentified by the resolution of consideration. The resolution of considerationmay have a metes and bounds description or a map, shall remain effective fortwo years after adoption, and shall be filed with the city clerk. A newresolution of consideration adopted before expiration of the two‑yearperiod for a previously adopted resolution covering the same area shall relateback to the date of the previous resolution.

(j)         Subsection (i) ofthis section shall not apply to the annexation of any area if the resolution ofintent describing the area and the ordinance annexing the area both providethat the effective date of the annexation shall be at least one year from thedate of passage of the annexation ordinance.

(k)        If a city fails todeliver police protection, fire protection, solid waste or street maintenanceservices as provided for in G.S. 160A‑35(3)a. within 60 days after theeffective date of the annexation, the owner of the property may petition theLocal Government Commission for abatement of taxes to be paid to the city fortaxes that have been levied as of the end of the 60‑day period, if thepetition is filed not more than 90 days after the expiration of the 60‑dayperiod. If the Local Government Commission finds that services were notextended by the end of the 60‑day period, it shall enter an orderdirecting the city not to levy any further ad valorem taxes on the propertyuntil the fiscal year commencing after extension of the municipal services. (1959, c. 1010, s. 5; 1967,c. 1226, s. 1; 1973, c. 426, s. 74; 1975, c. 576, s. 3; 1977, c. 517, s. 5;1983, c. 636, ss. 2, 4, 6, 36; 1985, c. 384, s. 1; 1987, c. 44, s. 1; 1989, c.598, s. 11; 1998‑150, s. 7; 2001‑487, s. 36; 2006‑264, s.17(a)‑(c).)