Cities have various reasons for initiating annexation. These are a few examples:
· Annexation to provide areas for future growth: Cities initiate annexation in order to provide areas for future growth and development. This can be especially critical in cities with limited vacant, developable property to accommodate growth within its existing boundaries.
· Annexation to secure tax base, revenue sources: This could include annexation of areas with desirable ad valorem values, areas with commercial activities that produce sales tax revenues or areas that produce current or future utility revenues.
· Annexation to cover service costs for ETJ residents using City services: As more and more residential areas develop within the ETJ, these residents begin to use the City's streets, parks and other facilities without paying for these services. Annexation brings the added revenue to help cover these service costs.
· Annexation to assert zoning or other regulatory control: Annexation brings territory into the full regulatory authority of a city. While the statutes provide cities with limited regulatory authority within its extraterritorial jurisdiction (ETJ), annexation into a city allows application of full land use controls and development standards. This additional control allows the City to implement the Comprehensive Plan.
· Annexation in response to an uncertain legislative environment: The State Legislature has passed several bills in recent years that make it increasingly difficult for Cities to pursue annexation. Should this trend continue, it may be in the City’s best interest to initiate annexation sooner rather than later.
· Annexation to protect the public health & safety: Cities initiate annexation to provide urbanizing areas with municipal services and to exercise the regulatory authority necessary to protect public health and safety.
· Annexation in response to a perceived threat: This typically takes the form of annexation of property that is developing or proposed for development for some land use deemed undesirable or otherwise a threat if not annexed and controlled.