STAKEHOLDERS, LAWMAKERS FIND AGREEMENT ON ANNEXATION
FRANKFORT, KY (March 16, 2023) — In a significant development, an annexation agreement was reached between the state's largest county and city organizations—the Kentucky League of Cities (KLC) and the Kentucky Association of Counties, or KACo. The agreement details were added to Senate Bill 141, sponsored by Senator Amanda Mays-Bledsoe, an act relating to city ordinances, and delivered to the Senate for concurrence.
Annexation is the process by which incorporated cities in Kentucky physically expand their boundaries. It is primarily done through one of two methods, either consensual or non-consensual annexation. In consensual annexation, landowners agree in writing to be annexed by the city.
“I felt I had to bring the city and county representatives together to develop a plan that both would flourish under, “ said Senate President Robert Stivers. “Leadership from both organizations realized how important this topic was to bring to the table and developing a task force to take a deep dive will enhance continued growth both are experiencing.”
Over half of the state's residents live in one of Kentucky's 415 incorporated and active cities, according to KLC. The measure would allow annexations that had begun before March 1, 2023, to continue and place a moratorium on all annexations until after July 1, 2024.
Exceptions include when:
The annexation provides an opportunity for substantial economic development requiring an extension of city services for a business that proves it would not locate there unless those services are only available from the city.
Annexing the land would directly allow new or substantially improved services that cannot be provided by the city without annexation.
A contract made prior to the effective date of the act would be voided by the moratorium for annexations already underway.
The property owner requests the annexation and the property is contiguous to the existing city boundary and the city provides notice to the fiscal court where the property is located 45 days before enacting the final annexation ordinance.
The county agrees to the annexation.
This bill would void, alter, or otherwise impede current inter-local agreements involving occupational tax and insurance premium tax.
Additionally, the measure gives standing to county governments to file suit if they believe a city violates the moratorium, requiring the suit is filed within 45 days of the annexation’s completion. It requires the city to notify the judge/executive in writing of an annexation’s completion.
Without the county's consent, the bill would expressly prohibit any annexation involving school property before July 1, 2024.
Finally, the bill directs the Legislative Research Commission to establish the Task Force—and sets its membership—on Local Government Annexation, which will make recommendations based on the topics it is responsible for investigating.
The bill carries an emergency designation, meaning it would take effect immediately upon filing with the Kentucky Secretary of State’s Office.
“I was more than happy SB 141 was the vehicle for a way forward both city and county leadership will have a hand in and buy in with,“ said Bledsoe. “The real work will take place over the next year and I’ll be interested to see how this develops into the best possible plan.”
###
For more information on Senate Majority Caucus members and the 2023 Legislative Session, such as committee schedules and membership, please visit legislature.ky.gov.
Live legislative coverage is available at ket.org/legislature and via the Legislative Research Commission YouTube channel. Access archived footage of legislative meetings at ket.org/legislature/archives.
Follow the Kentucky Senate Majority Caucus on Twitter, Facebook, and Instagram. We also encourage you to visit KYSenateRepublicans.com to subscribe to receive new releases from our office and access additional information on caucus members.