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(1) No municipality may annex an unincorporated area located within a specified county unless the municipality has adopted an annexation policy plan as provided in this section.
(2) To adopt an annexation policy plan:
(a) the planning commission shall:
(i) prepare a proposed annexation policy plan that complies with Subsection (3);
(ii) hold a public meeting to allow affected entities to examine the proposed annexation policy plan and to provide input on it;
(iii) provide notice of the public meeting under Subsection (2)(a)(ii) to each affected entity at least 14 days before the meeting;
(iv) accept and consider any additional written comments from affected entities until 10 days after the public meeting under Subsection (2)(a)(ii);
(v) before holding the public hearing required under Subsection (2)(a)(vi), make any modifications to the proposed annexation policy plan the planning commission considers appropriate, based on input provided at or within 10 days after the public meeting under Subsection (2)(a)(ii);
(vi) hold a public hearing on the proposed annexation policy plan;
(vii) provide reasonable public notice, including notice to each affected entity, of the public hearing required under Subsection (2)(a)(vi) at least 14 days before the date of the hearing;
(viii) make any modifications to the proposed annexation policy plan the planning commission considers appropriate, based on public input provided at the public hearing; and
(ix) submit the planning commission's recommended annexation policy plan to the municipal legislative body; and
(b) the municipal legislative body shall:
(i) hold a public hearing on the annexation policy plan recommended by the planning commission;
(ii) provide reasonable notice, including notice to each affected entity, of the public hearing at least 14 days before the date of the hearing;
(iii) after the public hearing under Subsection (2)(b)(ii), make any modifications to the recommended annexation policy plan that the legislative body considers appropriate; and
(iv) adopt the recommended annexation policy plan, with or without modifications.
(3) Each annexation policy plan shall include:
(a) a map of the expansion area which may include territory located outside the county in which the municipality is located;
(b) a statement of the specific criteria that will guide the municipality's decision whether or not to grant future annexation petitions, addressing matters relevant to those criteria including:
(i) the character of the community;
(ii) the need for municipal services in developed and undeveloped unincorporated areas;
(iii) the municipality's plans for extension of municipal services;
(iv) how the services will be financed;
(v) an estimate of the tax consequences to residents both currently within the municipal boundaries and in the expansion area; and
(vi) the interests of all affected entities;
(c) justification for excluding from the expansion area any area containing urban development within 1/2 mile of the municipality's boundary; and
(d) a statement addressing any comments made by affected entities at or within 10 days after the public meeting under Subsection (2)(a)(ii).
(4) In developing, considering, and adopting an annexation policy plan, the planning commission and municipal legislative body shall:
(a) attempt to avoid gaps between or overlaps with the expansion areas of other municipalities;
(b) consider population growth projections for the municipality and adjoining areas for the next 20 years;
(c) consider current and projected costs of infrastructure, urban services, and public facilities necessary:
(i) to facilitate full development of the area within the municipality; and
(ii) to expand the infrastructure, services, and facilities into the area being considered for inclusion in the expansion area;
(d) consider, in conjunction with the municipality's general plan, the need over the next 20 years for additional land suitable for residential, commercial, and industrial development;
(e) consider the reasons for including agricultural lands, forests, recreational areas, and wildlife management areas in the municipality; and
(f) be guided by the principles set forth in Subsection 10-2-403(5).
(5) Within 30 days after adopting an annexation policy plan, the municipal legislative body shall submit a copy of the plan to the legislative body of each county in which any of the municipality's expansion area is located.
(6) Nothing in this chapter may be construed to prohibit or restrict two or more municipalities in specified counties from negotiating and cooperating with respect to defining each municipality's expansion area under an annexation policy plan.