EXECUTIVE SUMMARY Demographic Analysis: Warren-Reese has an estimated 1998 population of 878 persons and has grown at an average annual rate of 1.4 percent since 1990. Average household size in Warren-Reese is 3.7 persons, larger than the average household size of 2.7 persons in Weber County. Average household incomes of $49,544 are higher than average household incomes of $31,977 countywide. The overall level of educational attainment is also higher than County levels. Land Use Analysis: The land area of the proposed incorporation area covers 47.8 square miles, with a resulting population density of 16 persons per square mile (based on 1990 Census data). By 1998, density has only increased to 18 persons per square mile, far less than the average density for Weber County (314 persons per square mile). Approximately two-thirds of the land area lies below elevation 4,215 which is considered by Weber County as the flood plain of the Great Salt Lake. Construction is limited below this level. There are no physical barriers to incorporation and the proposed boundaries do not create any unincorporated islands or peninsulas. The boundaries of natural geographic features and currently existing political boundaries have been followed: While Plain City's Annexation Policy Declaration includes portions of Warren-Reese, the proposed incorporation does not necessarily hinder or prevent a future and more logical and beneficial incorporation or annexation. Fiscal Analysis: Special districts, such as the fire and water districts currently serving the proposed incorporation area, will not be affected by the incorporation. These districts have separate budgets for revenues and expenditures, which will not be impacted by incorporation. If Weber County provides contract services for public safety, public works and animal control to the proposed incorporation area, the municipal services fund will not be impacted negatively by incorporation and may even realize some increase. If contract services are not provided by the County, the municipal services fund will lose revenues of nearly $318,000 while expenditures will be reduced by only $256,000 a difference of approximately $62,000. If contract services are provided, County revenues (including the contract fees) will decrease by roughly $16,000 while expenditures will decline by approximately $66,000. Other municipalities will not be fiscally impacted by incorporation. The estimated budget for the proposed Warren-Reese area suggests $298,939 in revenue sources (not including property or franchise taxes) and $419,569 in expenditures a ratio of revenues to expenditures of 71 percent. The proposed budget also does not include any future capital projects. Any significant growth in the area will probably trigger the need for a central sewer system. The Central Weber treatment plant has capacity to serve this area but does not have any lines located within the boundary. There will also be startup costs and revenue lags that will increase the deficit between revenues and expenditures during the first year of incorporation. Including these factors, it is anticipated that property owners will have to pay $679,440 in some form of tax (either franchise or property) over the next five years. If property is the sole means used to fund the deficit, it is anticipated that the tax on a $100,000 primary residence will be about $230 per year, with a cost of roughly $288 during the startup year. 111