Sidney considers annexation of properties

The city expects to extend its borders in the near future, according to city manager Gary Person.

Discussions about the pros and cons of annexing portions of land adjacent to the city were discussed at city council and planning commission meetings last month. The state’s annexation roles have changed in the past five years, making it a more intensive process than in the past. Annexation simply means incorporating ground currently adjacent to Sidney into the city limits.

Some areas outside the city limit are under the city’s two mile zoning influence. The reason for this is so the city has control over zoning in areas that might affect the city or eventually be annexed. In the past, the city has extended utilities outside the boundaries of the city limits to accommodate developments, which Person said might not have been advisable.

A few issues accompany annexation.

“The city can provide electrical service inside our incorporated boundaries, but when we annex something, we have one year in which to negotiate that takeover of that electrical service territory or you lose the right forever,” Person said.

Planning commissioner member Jonathan Mueller wanted to know why the city wouldn’t provide services to a development outside city limits.

“If you want to look at it from a logical planning standpoint,” Person said. “Then the argument is, if people need you, then you need to be part of the city.”

City staff have discussed possible annexation with multiple landowners interested in possible development around the borders of the city.

“We’ve had numerous conversations with all of these different property owners,” Person said.

Some property owners are concerned about additional taxes inside the city limits.

Another concern is a valuation increase. If property was suddenly inside the city limit, this might cause land values to rise.

“It’s those issues that are the balancing act,” Person said. “What do you get in return for all of that? You get additional law enforcement protection, you get all the rights and privileges that everybody else gets.”

The process for annexation would include public meetings, three ordinance readings and public notice to the community. This process would take several months.

“There’s all kinds of different trade offs,” Person said. “From our perspective we have to look at it as what’s best for the long-term viability of our community and that is to strongly consider this. When we do get requests for water extensions, sanitary sewer if it’s adjacent to our boundaries I think we should take the approach that you should be a part of the city.”

The city does not wish to forcibly add any area to the limits. The city will strive to do annexation only in partnership with businesses, developers and landowners.

“I would anticipate sometime in the following months, maybe in the spring they (the planning commission) may bring forward a request to go through the process of considering some different properties,” Person said at a city council meeting last month. “Staff has also met with a number of those landowners. A lot of them are very receptive to annexation for obvious reasons.”

Some argue that incorporating ground into the city could cause developers to have fewer financing options, if they decide to build.

“I think we need to be careful about over-annexing property prematurely,” said councilman Mark Nienhueser at a council meeting last month.

Although the city’s growth on the north side is limited due to geography, expansion is possible in all other directions, Person said.

“I think on the north side, we’re kind of locked, but to the east, to the west, to the south everything’s a possibility,” Person said.