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Annexation is the process by which suburban communities are permanently absorbed by adjacent central cities. This paper serves to summarize the persons, places, and ideas as they relate to economic development and possible annexation of the unincorporated town of Salida to the city of Modesto. Modesto and Salida are indeed adjacent to one another and lay in the center of the San Joaquin Valley of California. While this issue has been spoken of for years, recent headway has been made making annexation a real possibility and at the forefront of topics in City Council meetings and Salida Municipal Advisory Council.

On 8/7/12 the Stanislaus County Board of Supervisors approved $33,000 in funds to Goodwin Consulting Group, Inc to conduct the Salida Annexation Fiscal Impact Analysis. The county agreed to split the cost with the city of Modesto and on 8/8/12 Modesto City Council approved funds in the amount of $33,000 for the analysis. These agenda items in August were not a popular use of the county and city money according to those citizens in attendance and those commenting through newspapers and online. Modesto is a city of 201,165 people according to the 2010 census and is governed by a mayor-council system. The city currently is working on a number of projects such as the Downtown Core Zone, Woodglen Project for housing, and the Marketplace Shopping Center for jobs and business. Along with these projects Modesto now has its sights set on Salida and the vast farmland surrounding California State Route 99. The census-designated place of Salida is five and half square miles and has a 2010 census population of 13,722. Salida lies on the opposite side of the Modesto city line.

The subject of annexation has been topical due to multiple issues by both the County of San Joaquin and City of Modesto. Salida has an annual cost to the county of 3 million dollars for providing services to the town. Salida just does not have the tax base to cover the cost of running the area. Salidas' small tax base is also the reason the people have not incorporated themselves into a city. Cities incorporate to protect themselves from the threat of annexation. (Smith) The City of Modesto is hoping their future economic prosperity lies in the land that is would acquire from Salida which would be industriously developed using highway 99 as delivery hub. Modesto is banking on developers coming in and proposing plans due to the county planning on their Hammett Rd Interchange project that would be an expressway to Oakdale, CA and the foothills.

Economically it makes sense to spend money to gain information, possibly saving money, should the Salida Annexation Fiscal Impact Analysis show it is not fiscally feasible to proceed. As a citizen of Modesto myself, as well as other Modestons' should be concerned with paying for the increase in taxes and fees should the annexation take place. As stated previously the cost of services falls three million dollars short of the annual tax coverage in Salida. Additionally south Modesto and the airport district are in disrepair. Annexing Salida could take away resources needed for these practically