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145 <br />30 <br />State - maintained streets. HB 171 - Municipal Self- Annexations (SL 2011 -57) makes <br />changes to both the contiguous and the satellite voluntary annexation statutes intended <br />to restrict the annexation of state - maintained streets on the city's own volition. It <br />specifies that a city has no authority to adopt a resolution or to petition itself for <br />voluntary annexation of property it does not own or have a legal interest in. It then <br />states that, for purposes of the prohibition, a city has no legal interest in a state - <br />maintained street unless it owns the underlying fee rather than an easement. The act <br />also amends the satellite annexation statute to provide that a satellite petition is not <br />valid if it is unsigned; signed by the city for the annexation of property the city does not <br />own or have a legal interest in; or it is for the annexation of property for which a <br />signature is not required and the property owner objects to the annexation. The act was <br />effective April 28, 2011. <br />III. Effective Date <br />Aside from the provisions on state - maintained streets mentioned above, the changes to <br />the voluntary process were effective July 1, 2011 and apply to petitions for annexation <br />presented on or after that date. <br />CHANGES APPLICABLE TO ALL TYPES OF STATUTORY ANNEXATION <br />Recordation of agreements. HB 845 requires any written agreement regarding <br />annexation between a municipality and a person having a freehold interest in real <br />property to be recorded in the register of deeds office in the county where the property <br />is located in order for the agreement to be enforceable. <br />State fund priority. HB 845 requires that Community Development Block Grant, <br />Wastewater Reserve, and Drinking Water Reserve funding guidelines give priority to <br />projects located in areas annexed by a municipality in order to provide water or sewer <br />services to low- income residents. Low - income residents are those with a family income <br />that is 80% or less of median family income. (This is applicable regardless of the type of <br />annexation process but may be of more interest for the high poverty petitioned areas.) <br />RECOMMENDED ACTIONS <br />The legislation significantly alters the authority of municipalities to annex, and it is <br />important to review your municipality's practices to ensure that they reflect these <br />changes. <br />Assess the status of annexations in progress. It is important to first determine whether <br />the municipality has any city - initiated annexations currently underway and where they <br />are in the process. Based upon the effective date of the changes (see Sec. VI above), <br />