Annexation generates taxes to fund the increased demand for city services.
Annexation allows cities to provide services cost-effectively and efficiently, and allows cities to position the community for future growth and economic development. The majority of annexations are undisputed or do not result in a contested-case hearing. Minnesota Planning Agency is required to prepare a report on the successes and failures of the new annexation process. This report must be submitted to the Legislature by 2002. The elimination of the Municipal Board and the implementation of the new process was the result of a compromise agreement between the CGMC, counties and townships.