City wins annexation lawsuit
a_bfh_9-23 The city of Whitefish was the center of a landmark annexation case in which the Montana Supreme Court ruled Tuesday in favor of the city's move to annex five neighborhoods.
About 270 county residents in those outlying areas will be annexed as a result of the high court's decision to uphold Flathead District Judge Ted Lympus' prior decision.
The decision crystallized two key points in annexation proceedings. First, that recorded waivers of protests go with the land. Many of the county residents had inherited 30-year-old annexation waivers that had been signed by prior owners; new owners must abide by those waivers.
Second, the court ruled that "substantial" rather than "complete" extension of services complied with state law and could trigger annexation.
The majority of the property owners used some city services, mainly water. The court ruled that special improvement districts would be adequate entities to administer any future extension of services.
"This was clarified at the highest level and leaves no questions as to annexation (proceedings)," noted Bill Astle, the attorney for the homeowners.
Astle scored one victory in the ruling. The city had asked that the court rule that signing waivers also voided the right to protest that waiver in court. The court ruled court action can still be sought that challenges the validity of the waivers, though the annexation process proceeds.
Whitefish City Attorney John Phelps was pleased with the decision because the victory establishes Whitefish as a model for proper annexation. Phelps expects requests from other cities as to how Whitefish conducts annexations.
"There will be unhappy people and I wish there was some other way to bring them in on a positive note," said Phelps.
Increased taxes due to a shift from county to city was an underlying issue. Based on his experience, Astle estimated the change will result in 25 to 30 percent higher taxes.
Phelps noted that although taxes would increase, Astle's numbers would be offset by the resort tax rebate -a property tax rebate for city residents, bringing overall increases down to the 10-15 percent range.
Acting city manager and finance director Michael Eve noted that several trade-offs will minimize the overall effect. County residents will no longer have to pay a $55 yearly fee for city fire services and also won't have to pay the county road mill levy. Sewer and water rates will also be decreased. Currently, county residents using city services pay a higher fee than city residents.
New city residents will have to pay a street maintenance and street light assessments, but in return will receive those city services, along with police and fire protection and the right to vote in city affairs.
"It's positive for our community," Eve emphasized, noting that before the decision the city map looked like a jurisdiction checkerboard. "It helps efficiency of services and it helps us in planning for the future."
The neighborhoods affected are west of Baker Ave. and south of the Whitefish River, East on Second St. by Armory Park, the Colorado and Texas avenue areas, Nelson Lane (near the golf course) and the Lake Park/Patton Park area (along State Park Rd.)