Dig a well or annex into the city?

[BrokeFarmerJohn]

Hey guys,

I’m looking for some advise here, I bought a house 3 years ago and the small city I boarder now is trying to force me to annex into the city on my dime.

They drafted a law in 2008 any house bought after 2010 that is on city water and septic has to annex into the city within 90 days or they have no legal obligation to provide water services (aka shut my water off).

I’m the second owner since that date and was not told about this when I bought the house. (Private sale)

Pros of annexation: Water bills go down by around 40% I was told. I continue to get city water and septic. I would be covered by city police department and not county sheriffs.

Cons: I have to pay more taxes, a tax that I’m not currently paying of 1.5% income tax will be new. I would be within the city limits but still be considered as “rural”, I was told this would not affect my ability to have Cattle and chickens. Home improvements would need inspected.

To tell them to shove it, I would need to have a well dug then dig the old septic system up and hook back up to that. (Septic hasn’t been used in over 10 years. Would be pretty costly.

Currently I’m paying $70 per month for under 2999 gallons, around $100 for 3000-3999 gallons and around $120 for above 4000 gallons which I have hit because of water use with cattle.

I’m in the township, I pay property tax and local school tax, those would be the same but it would add 1.5% income tax (forget what it’s called).

Idk what an annexation will cost, I will be looking into it in the next few days. As far as resale value, township houses are more sought after due to less taxes so it would be easier to resell if I stayed township, I don’t really think it would lower its value unless the buyer couldn’t afford the taxes and the house, might turn a few potential buyers away. But idk.

So what do you all think? Bite the bullet and start digging up the yard or pay to annex?

I will also say I would have to start selling stuff off and get a loan for most of the cost to get off city water and septic, I don’t just have the cash sitting in the bank.

 

[turnkey4099]

Hey guys,

I’m looking for some advise here, I bought a house 3 years ago and the small city I boarder now is trying to force me to annex into the city on my dime.

They drafted a law in 2008 any house bought after 2010 that is on city water and septic has to annex into the city within 90 days or they have no legal obligation to provide water services (aka shut my water off).

I’m the second owner since that date and was not told about this when I bought the house. (Private sale)

Pros of annexation: Water bills go down by around 40% I was told. I continue to get city water and septic. I would be covered by city police department and not county sheriffs.

Cons: I have to pay more taxes, a tax that I’m not currently paying of 1.5% income tax will be new. I would be within the city limits but still be considered as “rural”, I was told this would not affect my ability to have Cattle and chickens. Home improvements would need inspected.

To tell them to shove it, I would need to have a well dug then dig the old septic system up and hook back up to that. (Septic hasn’t been used in over 10 years. Would be pretty costly.

Currently I’m paying $70 per month for under 2999 gallons, around $100 for 3000-3999 gallons and around $120 for above 4000 gallons which I have hit because of water use with cattle.

I’m in the township, I pay property tax and local school tax, those would be the same but it would add 1.5% income tax (forget what it’s called).

Idk what an annexation will cost, I will be looking into it in the next few days. As far as resale value, township houses are more sought after due to less taxes so it would be easier to resell if I stayed township, I don’t really think it would lower its value unless the buyer couldn’t afford the taxes and the house, might turn a few potential buyers away. But idk.

So what do you all think? Bite the bullet and start digging up the yard or pay to annex?

I will also say I would have to start selling stuff off and get a loan for most of the cost to get off city water and septic, I don’t just have the cash sitting in the bank.

tight spot. If you stay on city GET EVERY PROMISE IN WRITING BY SOMEONE WHO IS ACTUALLY IN AUTHORITY. Then make multiple certified copies and include one (best would be the original) with the title docuiments.

 

[EarPlug]

"force me to annex into the city on my dime." So what would the cost be?

"was not told about this when I bought the house. (Private sale)" - talk to a Real Estate Lawyer, you might still be able to go after the previous owners for non-disclosure

"Water bills go down by around 40%" - by what you said about your usage you should save over $1500/year

"it would add 1.5% income tax" - tax on what "income"?

"might turn a few potential buyers away" - most "city folks" would prefer city water & sewer. They are afraid of well & septic. How soon do you plan on selling? Might be a non issue.

It sounds like you still don't have enough info. You need to know the cost of annexation versus the cost of going back to well & septic. Also, what is the actual taxation difference. The savings on the cost of water may just offset the increased taxes.

 

[oldnslo]

A couple of questions:
Will the county approve the request to drill a well?
Will the county approve your request to install the septic system.

What will these two items cost and how many years would it take to recoup these costs Vs paying the 1.5% tax?

Here in Illinois they probably would not allow you to drill a well or install the septic that close to an established community.

 

[fordmantpw]

"was not told about this when I bought the house. (Private sale)" - talk to a Real Estate Lawyer, you might still be able to go after the previous owners for non-disclosure

I don't think the seller has to disclose a public law. That's the buyer's own due diligence unless the seller didn't mention it was on city water/sewer. Again, though, that's the buyer's responsibility to find out.

 

[bunyip]

I thought that you would have a disclosure document similar to what we have when purchasing a property, the title cannot be transferred without one and if the disclosure document has an omission you have some legal recourse with whoever created the document be it either fraudulent or error.
It appears that you may have some recourse given the dates but get legal advice as per EarPlugs' suggestion.

EDIT: Fordmanptw posted while I was submitting and my comments are based on what I thought would constitute ethical behaviour.

 

[fordmantpw]

To the OP, do you know the cost to drill the well and fix the septic? How much would you have to borrow?

How much would those taxes add every year?

With that information, we can likely calculate the cost to do one over the other.

In my opinion, I would prefer to be connected to sewer, but wouldn't trade my well for city water if I had a choice. I much prefer the taste and lack of chlorine from the well.

I thought that you would have a disclosure document similar to what we have when purchasing a property, the title cannot be transferred without one and if the disclosure document has an omission you have some legal recourse with whoever created the document be it either fraudulent or error.
It appears that you may have some recourse given the dates but get legal advice as per EarPlugs' suggestion.

EDIT: Fordmanptw posted while I was submitting and my comments are based on what I thought would constitute ethical behaviour.

I agree it would be ethical of the buyer to point it out, but not necessary legal. The buyer's ignorance of the law is not the seller's fault.

 

[tcreeley]

Call some well drilers in the area and they can tell you what they require to drill and how deep the wells go in your area.. Can be a one day job. I like well water- tastes better, no chemical/chlorine taste. The county/town will tell you what you need for a septic system. The design depends on the number of bedrooms and bathrooms (number of people). Ours is a 1000 gal tank and a connected leach field for drainage. That is usually a 1 day job as well. They probably can use your old tank and just redo the leach field, good luck.

 

[300UGUY]

I’d say you might as well go along with it, as long as you are grandfathered in, as far as animals. I doubt they would cut off your water and sewer, might not be legal for them to do so. I also think that drilling a well is not going to be allowed, same with the septic. In Michigan, you cannot get a well put in without a permit. The well guys don’t want to lose their license, so the won’t do it. I know, I tried ! ��
And no money upfront is nice too. I didn’t want to go on the municipal system at a building I own, but after using the city water, I like it. Reminds me I gotta go add some salt in my softener here at home ��

So

 

[BrokeFarmerJohn]

"force me to annex into the city on my dime." So what would the cost be?

"was not told about this when I bought the house. (Private sale)" - talk to a Real Estate Lawyer, you might still be able to go after the previous owners for non-disclosure

"Water bills go down by around 40%" - by what you said about your usage you should save over $1500/year

"it would add 1.5% income tax" - tax on what "income"?

"might turn a few potential buyers away" - most "city folks" would prefer city water & sewer. They are afraid of well & septic. How soon do you plan on selling? Might be a non issue.

It sounds like you still don't have enough info. You need to know the cost of annexation versus the cost of going back to well & septic. Also, what is the actual taxation difference. The savings on the cost of water may just offset the increased taxes.

Still don’t know the annexation cost.

Will look into that.

My bill is usually $70 per month, it’s been as high as $125 but that’s really hot summer months. 40% of 70 is 28, that would drop the bill to $42 or around there. $42x12=$504-$720 vs $840-$1200 per year now. So I would save $300-$600 per year.

1.5% tax on my income, from my job.

I don’t have any plans to sell but who knows what the future will hold.