City of Hobart v. Chidester

596 N.E.2d 1374, 1992 Ind. LEXIS 195, 1992 WL 186590
CourtIndiana Supreme Court
DecidedAugust 6, 1992
Docket45S04-9208-CV-610
StatusPublished
Cited by28 cases

This text of 596 N.E.2d 1374 (City of Hobart v. Chidester) is published on Counsel Stack Legal Research, covering Indiana Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
City of Hobart v. Chidester, 596 N.E.2d 1374, 1992 Ind. LEXIS 195, 1992 WL 186590 (Ind. 1992).

Opinions

ON CIVIL PETITION TO TRANSFER

SHEPARD, Chief Justice.

This appeal presents questions about what evidence a trial court may consider in proceedings contesting municipal annexations. It has been about twenty years since this Court last spoke on the subject.1 During these decades, both the statutes and case law in this area have continued to evolve. We grant transfer to address certain issues of statutory interpretation which have developed since our last visit.

I Case History

This case arose after the City of Hobart adopted ordinances to annex certain adjacent and contiguous portions of Ross Township. Jeffrey L. Chidester and a number of landowners from the annexed area objected to the annexation and filed a complaint against the annexation ordinance. The trial court heard ten days of evidence and arguments in May and June 1990. On July 11, 1990, the trial court entered findings of fact and conclusions of law. It found for the city on some of the points in contention but sustained the remonstrance on grounds that the city's fiscal plan did not set out which areas in the city were similar in topography, patterns of land use, and population density to the annexed area. While there was extensive evidence offered during trial about these comparisons, the trial court apparently felt obliged by Drake v. City of Fort Wayne (1989), Ind.App., 543 N.E.2d 1145, to decide the case without reference to that evidence. The trial court's findings did not indicate whether the evidence presented at the hearing was insufficient to show these comparisons, or whether the services proposed for the annexed territory would not be equivalent to services provided in Hobart. The Court of Appeals affirmed. City of Hobart v. Chidester (1991), Ind.App., 582 N.E.2d 457.

IL - Evolution of Indiana Annexation Law

The framework of Indiana's annexation law has long featured three basic stages: (1) legislative adoption of an ordinance annexing of certain territory and pledging to deliver certain services within a fixed period, (2) an opportunity for remonstrance by affected landowners, and (3) judicial review. Earlier versions of the statute did not require the city to set out in writing its plan for providing services; it was sufficient that the city present evidence at the trial court's hearing on remonstrance to show that the statutory preconditions to annexation (sometimes called the primary determinants) had been met. See, eg., [1376]*1376Burns' Ind.Stat.Ann. § 48-702 (1963);2 Burns' Ind.Stat.Ann. § 48-722 (Supp.1974), Ind.Code § 18-5-10-253

The courts which were hearing annexation remonstrances, however, began to feel the need for a more tangible description showing what measures the annexing city intended to initiate to provide the required services. In Harris v. City of Muncie (1975), 163 Ind.App. 522, 325 N.E.2d 208, the Court of Appeals considered whether a city must adopt a written plan. Not quite willing to say that the statute so required, the Court held that the city should have "some observable and reviewable program for providing the required services." Id. 325 N.E.2d at 213. To satisfy this requirement, evidence showing the adequacy of the city's fiscal plan (of factor (c), the predecessor of present (d)(4) and (5)), must be "sufficiently specific to enable court to determine whether the proposed schedule is reasonable and whether it would enable the city to provide services as required." Id. at 214. In 1979, the General Assembly amended the statute by adding a requirement that the city develop a written fiscal plan showing that the primary determinants were met. Ind.Code Ann. § 18-5-10-25 (Burns Supp.1980). That same year the Court of Appeals finally held that the former statute required city to offer into evidence at the remonstrance hearing written records reflecting its fiscal plan. Stallard v. Town of St. John (1979), Ind.App., 397 N.E.2d 648.

Although the annexation statutes have gone through many changes over the years, certain general propositions of law continue to apply. The statutes invest exclusive authority to annex territory in the governing body of a municipality. City of Aurora v. Bryant (1960), 240 Ind. 492, 165 N.E.2d 141. Annexation is a legislative function and becomes a question subject to judicial cognizance only upon review as provided by statute. City of Indianapolis v. Wynn (1959) 239 Ind. 567, 157 N.E.2d 828. Indeed, to the extent annexation statutes have seemed to require courts to make determinations of a non-judicial nature, courts have refused, finding themselves to be without the power to do so under the separation of powers clause of the Indiana Constitution, Art. 3, § 1. See, e.g., In re City of Mishawaka (1972), 259 Ind. 530, 289 N.E.2d 510. The court is not authorized to act unless a remonstrance is filed; if a remonstrance is not filed, the annexation becomes effective. Wynn, 239 Ind. 567, 157 N.E.2d 828. The effect of filing a remonstrance is to abate the culmination of the annexation pending review in the courts, where the burden is on the munici[1377]*1377pality to sustain the annexation by showing that it has complied with the requirements of the statute. Id. Because the city's authority to annex territory is limited by statute, the court's duty is to determine whether the city has exceeded its authority and met the conditions imposed by the statute. King v. City of Bloomington (1959), 239 Ind. 548, 159 N.E.2d 563; Bryant, 165 N.E.2d at 147.

IIL The Present Requirements for Fiscal Plans

Municipal annexation is today governed by Indiana Code Ann. §§ 36-4-3-1-36-4-3-22 (West 1983 & Supp.1991). The focus of this litigation has been on the interpretation of Ind.Code § 36-4-3-13(d) which states:

The requirements of this subsection are met if the evidence establishes that the municipality has developed a written fiscal plan and has established a definite policy, by resolution of the legislative body, as of the date of passage of the annexation ordinance. The resolution must show:
(1) the cost estimates of planned services to be furnished to the territory to be annexed;
(2) the method or methods of financing the planned services;
(3) the plan for the organization and extension of services;

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Bluebook (online)
596 N.E.2d 1374, 1992 Ind. LEXIS 195, 1992 WL 186590, Counsel Stack Legal Research, https://law.counselstack.com/opinion/city-of-hobart-v-chidester-ind-1992.