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27 Oct 2009 11:03am | Posted by Steve Rogers | Steve Rogers' Column
Deja Vu: Columbus Can't Afford Another Stalemate

Columbus is going through deja vu. Four years ago, the city was at this point when Jeffrey Rupp was starting his second term as mayor. Ditto for two years ago when Robert Smith was settling in as mayor.

Both times, a variety of factors -- much of it a lack of will, courage and vision -- converged to snuff out an opportunity critical to the city's long-term good.

Now, a new City Council is crafting its own annexation plan, this one little different from what's been on the table previously. The third time must be the charm; the city can't afford to falter again.

During an hour-long discussion recently, council members made it clear their decision will be guided, at least in part, by racial demographics.

Overall, the city's population, based on the 2000 census, is 54.4 percent black and 43.6 percent white. In the nine years since that census, the African-American majority likely has increased.

With that in mind, neither black nor white council members want annexation to dramatically shift the numbers one way or the other. That means black leaders don't want to annex areas to the north that predominantly are white and white officials don't want to only annex areas to the east which have a black majority.

Except for where Justice Department approval might come into play, race shouldn't be an issue in annexation. Instead, the city's long-term best interests should be the guiding factor. But wishing for such a situation ignores political realities.

Even within those political parameters, the council can avoid another stalemate and agree on a plan to expand its borders.

The eastern area is the least expensive to annex because not as much utility work will be needed -- between $5 and $6 million for water and sewer upgrades -- and police and fire protection can be provided largely with existing staffs.

The area includes some commercial properties, car dealerships and home improvement and construction supply stores that will provide both sales and ad valorem taxes. But its population is mostly low and middle income, its streets are at best average and it includes more than its share of rundown properties and high-crime areas.

The north proposal includes Bent Tree subdivision and areas along Highway 45 up to and including Oakdale Park subdivision. It's predominantly white and includes some of the area's more expensive homes. More importantly, it includes some commercial outlets and considerable vacant land suitable for future commercial and residential growth that translate into sales and property tax revenues.

Unfortunately, the area already is served by another water district. Thus, Columbus Light and Water primarily would be responsible for sewer service, which isn't a money-maker. Also, some water lines would have to be upgraded to meet fire standards.

Furthermore, the area would require building and staffing at least one new fire station. The property taxes the area would generate amount to about $700,000 a year, less than the annual costs to staff a firehouse.

From a demographic standpoint, the two areas are almost an exact wash in terms of black-white split so they'd do little to the city's current racial makeup.

Ruben's Catfish House, which inexplicably was written out of the city's last annexation more than a decade ago, also should be taken in. It would cost little but generate sales and property taxes. It already benefits from city fire and police protection and has utility service at its front door.

Council members also want to annex Columbus Air Force Base.

Barring a huge outcry from federal officials, it's a no-brainer. The base would add about 2,800 people to the city's population at little or no cost because the base is self contained with its own police and fire force and utilities. The new partially privatized housing would generate a small amount of property tax revenue.

The addition of the base population to the other areas would put the city over the psychologically important 30,000 population barrier, the point that makes a difference to potential retailers and developers.

The base and the northern area will do two other things -- raise the city's average income and educational attainment levels. Both are important barometers for investors trying to gauge a community's long-term viability and vitality.

And although the base population is predominantly white, it wouldn't dramatically skew the existing racial ratios. Furthermore, base residents would be of little concern to local politics because those residents seldom get involved in local elections.

With the demographic questions balancing out, council members must contend with the cost issue. On the surface, the price tag sounds unmanageable. But they must remember the utility costs are separate from police, fire and other services.

Light and Water will be responsible -- at least financially -- for the utility costs. Yes, annexing the areas and extending utilities likely would force an increase in water and sewer rates. But those increases would not be significant, especially since the improvements can be financed over 20 or 30 years and don't all have to be done at once.

A 5 percent increase in water and sewer rates would generate about $400,000 a year. That doesn't include revenue from new customers once they are added to the system.

The city may even be able to allocate revenues -- even if only $100,000 a year -- toward helping Light and Water finance the utility extensions.

Furthermore, residents of the proposed annexation areas currently pay extra property taxes for fire service -- 1.65 mills on their property tax and .5 mills on their car tags. That money could be transferred to the city to finance new fire stations, equipment and personnel.

Some residents of the proposed areas likely will protest being absorbed into the city. They really have little to complain about.

The school districts won't change; that's decided by the federal courts. Property taxes will go up but with the fire ratings dropping from an 8 to a 5, average insurance savings will be from $100 to $500 a year, depending on the value of their home.

Utility service and fire and police protection will improve overall. And if the city were to lower or eliminate the fire district tax, they'd experience another savings.

No one likes higher utility rates. But the fact is, we all must pay for annexation. It's an investment in all our futures. Otherwise, our community will wither on the vine.

If that happens, everyone -- even those who live outside the city but depend on its reputation and growth for their livelihoods -- will suffer.

Taking on new financial obligations always is scary. But annexation doesn't happen in a vacuum. Council members can't view the revenue numbers as static because they aren't. Growth will happen and that growth will enhance the city's financial outlook.

Instead of viewing annexation as a risk, Council members must cast timidity aside and approach the decision as an opportunity, a mandate.

The city must expand, bring in new businesses to improve its revenue stream, expand land available for future development, and increase the statistics critical to luring new investment from outside interests.

Yes, some will cry we can't. The truth is, we can't afford not to.



Comments & Article Feedback:


27 Oct 2009 10:33 pm | Posted by Sam Pilkinton
City can't take over electric or water service, but must provide sewer, seems to be a great burden on present customers, there is a limit on the tax that citizens can pay, many beleive we have reached that level Sam

27 Oct 2009 08:05 pm | Posted by Berry Hinds
smileI may be wrong thinking that that the incremental millage paid would decrease to the standard millage once an area is annexed. That is what I have gotten out of discussions on the areas proposed to annexed. This comment does not mean annexation should not be done.

27 Oct 2009 06:04 pm | Posted by Slate
Long overdue, how do people think Tupelo (52 sq miles) and Starkville have grown (26 sq miles)...they've annexed. It's an investment in the future forward looking cities make, time for Columbus to step-up also. Lowndes county is going to be a manufacturing hub for the region like never before with the Aerospace Park. This will produce a windfall of tax revenue and with a growing center city we'll all benefit.
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