1. Comprehensive Plan Working Groups Annexation Policy Presented by John Dugan December 4, 2015 1

2. Annexation in San Antonio Annexation allows a municipality to expand boundaries. Voluntary vs. Involuntary annexation. Limited Purpose vs. Full Purpose annexation. 2

3. San Antonio’s Annexation Policy San Antonio’s annexation policy was revised most recently in 2013. 2013 policy recommends 10-year Annexation Program to identify strategic annexation areas. The 2013 policy requires public hearings beyond Texas State Statute City-initiated annexations include 3-year limited purpose phase, allowing property owners input on a municipal service plan. 3

4. Criteria Supporting Annexation Need for urban services beyond County capacity. Ability to protect environmental and military assets. Land use and development regulations can establish higher quality growth. Unregulated development may adversely impact adjacent municipality. 4

5. Criteria Supporting Annexation Preserves ability to absorb economic growth and remain competitive. Fiscal impact is significant consideration. Areas benefitting from proximity to urban areas contribute revenue for services provided. Capital improvements benefit annexation areas. 5

6. Annexation 360 Study Under 2013 policy, City Manager directed DPCD to study potential annexation areas. 30 areas were evaluated and scored based on criteria outlined in policy. 6

7. Bexar County Study Tischler-Bise evaluated responses to rapid growth in unincorporated County. Study findings support the City’s Annexation 360 analysis. 7

8. 2015 Proposed Annexation The study was adopted with direction to move forward by Council on Dec. 4, 2015. 3 areas were identified for limited-purpose annexation in 2015:  IH-10 West  IH-10 East  U.S. 281 North 8

9. IH-10 West Annexation Area 9 Major gateway near La Cantera, Fiesta Texas, UTSA, Valero, and NuStar headquarters 2010 pop.: 12,781 20 yr pop. Projection: 22,928 $220 million investment in highway expansion, FY 2016

10. IH-10 East Annexation Area 10 Major gateway with developing industrial parks Dense urban area, and commercial growth. 2010 Pop.: 40,353 20 Year Pop. Projection: 54,180 $91.7 Million in transportation improvements

11. U.S. 281 North Annexation Area 11 Rapid growth area with expanding commercial development and established neighborhoods 2010 Pop.: 27,936 20 Year Pop. Projection: 43,940 $228 Million investment in highway expansion

12. 2016 Proposed Annexation Based on the same evaluation, 2 additional annexation areas were proposed for 2016:  U.S. 151  Highway 90 12

13. Highway 151 Annexation Area 13 Positive fiscal impact with emerging commercial centers on Hwy 151, Sea World, and Westover Hills $190.9 Million investment in highway expansion Projected 7.2 million sq. ft. commercial build-out on 500 acre Westpointe MDP Extend regulations before development occur

14. Highway 90 Annexation Area 14 Dense urbanized area north of Hwy 90 Preserve Lackland AFB Annex mission through zoning Farm and ranch land bounded by Hwy 90, Lackland Annex and the City limits Developing business/industrial parks

15. Fiscal Impact of 5 Priority Areas Area Sq. miles 2010 Pop. 2030 Pop. 20 -Yr Operating Impact ($ in millions) IH-10 West 14.912,78122,928$135 US 281 N 12.027,93643,940$154 IH-10 East 12.540,35354,180($118) HWY 151 14.68,95142,999$187 HWY 90/ Loop 1604 12.930,40254,302$53 TOTAL 66.9120,423218,349 $412 FY 2015 FY 2016 15

16. Timeline of 2015 Annexation Areas Spring 2015: Two bills were filed during the 2015 Texas Legislative Session. These bills were unsuccessful, but would have required a vote for municipality initiated annexation. August 2015: At the request of Council and the Mayor, John Dugan presented annexation scenarios, with staff providing fiscal analysis. Council chose to proceed as before. Fall 2015: Public hearings began in September 2015, but have since been delayed until spring of 2016. 16

17. Timeline of 2015 Annexation Areas October & November 2015: DPCD made two presentations regarding the impact of annexation on impervious surface cover over the Edwards Recharge Zone Present: Annexation policy has formally been folded under the SA Tomorrow Comprehensive Plan Initiative Present: An Annexation Task Force was convened and Public Financial Management and HR&A advisors have been contracted to consider financial models and implications of annexation. 17

18. Questions? 18