Municipal Annexation Presentation City of Starkville, Mississippi February 1, 2019

Transcription

1 Municipal Annexation Presentation City of Starkville, Mississippi February 1, 2019 Annexation Study Demographic Analysis Estimated Assessed Valuation & Ad Valorem Taxes Sales Tax Diversion Departmental Requirements Demographics & Financial Data

2 Total Population City of Starkville and Annexation Study Areas A & B 30,000 27,146 25,000 25,106 20,000 15,000 10,000 5,000 1, Existing City Area A Area B Combined City & Study Area Source: 2010 Decennial Census, Slaughter & Associates calculations Prepared by: Slaughter & Associates, PLLC 2

3 Dwelling Units City of Starkville and Annexation Study Areas A & B 14,000 13,435 12,000 12,522 10,000 8,000 6,000 4,000 2, Existing City Area B Combined City & Area A Study Area Source: 2010 Decennial Census, Slaughter & Associates survey and calculations Prepared by: Slaughter & Associates, PLLC 3

4 Racial Composition of Total Population (2010) City of Starkville and Annexation Study Areas A & B WHITE BLACK OTHER 1,368 (5.7%) 2 (0.9%) 107 (6.9%) 1,477 (5.8%) 8,274 (34.6%) 14,246 (59.6%) 117 (50.9%) 111 (48.3%) 350 (22.6%) 1,092 (70.5%) 8,741 (34.1%) 15,449 (60.2%) Existing City Area A Area B Combined City and Annexation Study Areas Source: 2010 Decennial Census, Slaughter & Associates calculations Prepared by: Slaughter & Associates, PLLC 4

5 Racial Composition of Voting Age Population (2010) City of Starkville and Annexation Study Areas A & B WHITE BLACK OTHER 1,025 (5.3%) 0 (0.0%) 83 (6.2%) 1,108 (5.3%) 5,938 (30.6%) 12,433 (64.1%) 74 (45.4%) 89 (54.6%) 284 (21.4%) 963 (72.4%) 6,296 (30.1%) 13,485 (64.6%) Existing City Area A Area B Combined City and Annexation Study Areas Source: 2010 Decennial Census, Slaughter & Associates calculations Prepared by: Slaughter & Associates, PLLC 5

6 Total Land Area City of Starkville and Annexation Study Areas A & B 25.6 mi² 1.9 mi² 1.2 mi² 28.7 mi² Existing City Area A Area B Combined City and Annexation Study Areas Source: Slaughter & Associates calculations Prepared by: Slaughter & Associates, PLLC 6

7 Street Miles City of Starkville and Annexation Study Areas A & B Existing City Area A Area B Combined City and Annexation Study Areas Local State/Federal Prepared by: Slaughter & Associates, PLLC Source: Mississippi Automated Resource Information System (MARIS), Slaughter & Associates calculations 7

8 Existing Land Use Annexation Study Area A SF = Single Family MF= Multi Family MH = Manufactured Home C = Commercial I = Industrial PSP/CH = Public/Semi-Public/Church SF MH MF C I PSP/CH Source: Slaughter & Associates field survey conducted November 1-2, 14, & 20, 2017 and October 10, 2018 Prepared by: Slaughter & Associates, PLLC 8

9 Existing Land Use Annexation Study Area B SF = Single Family MF= Multi Family MH = Manufactured Home C = Commercial I = Industrial PSP/CH = Public/Semi-Public/Church SF MH MF C I PSP/CH Source: Slaughter & Associates field survey conducted November 1-2, 14, & 20, 2017 and October 10, 2018 Prepared by: Slaughter & Associates, PLLC 9

10 Estimated Assessed Valuation and Ad Valorem Taxes Annexation Study Area A Annexation Study Areas A TOTAL ESTIMATED ASSESSED VALUE FY2017 Tax Roll Real Property 1 $ 2,257,607 Personal Property 1 $ 730,880 Automobile/Mobile Homes 2 $ 287,848 Public Utility 2 $ 18,627 Total Estimated Assessed Value $ 3,294,962 TOTAL ESTIMATED AD VALOREM TAXES 3 Millage Rate Collection Rate Tax Revenue General City Fund $ 83,358 Downtown Business District $ 6,260 Total: $ 89,618 1 Oktibbeha County 2018 tax roll 2 Calculated as percent of the 2018 Tax Roll real property assessed value for the City of Starkville 3 Based on the City of Starkville's FY18-19 Tax Levy. Prepared by: Slaughter & Associates, PLLC 10

11 Estimated Assessed Valuation and Ad Valorem Taxes Annexation Study Area B Annexation Study Areas B TOTAL ESTIMATED ASSESSED VALUE FY2017 Tax Roll Real Property 1 $ 10,108,897 Personal Property 1 $ 110,606 Automobile/Mobile Homes 2 $ 1,288,900 Public Utility 2 $ 83,406 Total Estimated Assessed Value $ 11,591,809 TOTAL ESTIMATED AD VALOREM TAXES 3 Millage Rate Collection Rate Tax Revenue General City Fund $ 293,255 Downtown Business District $ 22,024 Total: $ 315,280 1 Oktibbeha County 2018 tax roll 2 Calculated as percent of the 2018 Tax Roll real property assessed value for the City of Starkville 3 Based on the City of Starkville's FY18-19 Tax Levy. Prepared by: Slaughter & Associates, PLLC 11

12 Sales Tax Diversion Annexation Study Areas A & B Area A Sales Tax Collecting Businesses Starkville Ford Lincoln William Wells Tire & Auto Village Cycle Center Mike Latham Body Shop Deens Carpets Sprint Mart Jean Café Microtel Inn & Suites Orbit Fireworks Sales Tax Diversion, Area A Year Diversion Estimate FY , FY , Area B Sales Tax Collecting Businesses Campus Bookmart Down to Game Sales Tax Diversion, Area B Year Diversion Estimate FY , FY , Prepared by: Slaughter & Associates, PLLC 12

13 Departmental Requirements Annexation Study Areas A & B General Government Police Department Fire Department Community Development Department Engineering & Street Department Sanitation & Environmental Services Department Prepared by: Slaughter & Associates, PLLC

14 General Government Areas A & B No additional personnel or equipment needed Redistricting Additional County fee for property tax collection Area A only No additional personnel or equipment need Redistricting Additional County fee for property tax collection Prepared by: Slaughter & Associates, PLLC 14

15 Police Department Areas A & B Five (5) Full-Time Officers Five (5) Outfitted Cars Five (5) Weapons, Equipment and Uniforms Area A only One (1) Full-Time Officer One (1) Outfitted Car One (1) Weapon, Equipment and Uniform Prepared by: Slaughter & Associates, PLLC 15

16 Fire Department Areas A & B No additional personnel or equipment needed Area A only No additional personnel or equipment needed Prepared by: Slaughter & Associates, PLLC 16

17 Community Development Department Areas A & B No additional personnel or equipment needed Comprehensive Plan update Apply Zoning Area A only No additional personnel or equipment need Comprehensive Plan update Apply zoning Prepared by: Slaughter & Associates, PLLC 17

18 Engineering & Street Department Areas A & B One (1) Street Department Laborer 76 Street Lights (38 year 1, 38 year 2) Area A only One (1) Street Department Laborer 28 Street Lights (all in year 1) Prepared by: Slaughter & Associates, PLLC 18

19 Sanitation & Environmental Services Department 1 Areas A & B One (1) Driver One (1) Laborer One (1) Rear-end Loader One (1) Knuckle Boom Trash bags Area A only One (1) Laborer Trash bags 1 Separate enterprise fund, not part of general fund Prepared by: Slaughter & Associates, PLLC 19

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26 Water & Sewer Plan Cost Estimates Annexation Study Areas A & B Fire Protection Area A $1,268,334 Area B $1,502,275 Total $2,770,609* Annexation Study Areas A & B Sewer Area A $726,000 Area B $0 Total $726,000* * Cost estimates include easement acquisition and contingency. Source: Andrew Nagel, Starkville Utilities on 1/7/2019 Prepared by: Slaughter & Associates, PLLC 26

27 Financing Options The City may use a certain amount of funds from the current fund balance of the Water & Sewer Fund. Apply first for Community Development Block Grant (CDBG). These would be in a form of a grant and the City would not be required to repay the funds. Apply secondly for loans from the Sewer Revolving Fund (SRF) and the Water Revolving Fund (WRF). SRF is for sewer projects and are loaned at an interest rate of 1.75% and WRF is for water projects and are loaned at an interest rate of 2.00%. These funds are made available through the State. Apply thirdly for CAP loans. These are funds made available from the State for various projects at a rate of 3.00% and are capped not to exceed $1,000,000 for each project. Issue bonds through the Mississippi Development Bank. This is a conduit issuer of debt on behalf of local governments. These would be revenue bonds of the City, there are no debt limits, and do not count against any debt capacity. Could potentially get a moral obligation pledge of the State. Issue Water/Sewer Revenue Bonds. These are revenue bonds and are secured by the water/sewer revenues of the City. Have no debt limits and do not count against any debt capacity limits. Issue General Obligation Water/Sewer Bonds. These are general obligation bonds and would be repaid from water/sewer revenues and would count against the 20% debt limits under general obligation capacity and not under the 15% general obligation capacity. Prepared by: Slaughter & Associates, PLLC 27

28 $8,000 Fire Insurance Rate Comparison Homeowners Frame Construction $7,275 $7,000 $6,000 $5,820 $5,000 $4,365 $4,000 $3,000 $2,000 $2,183 $2,910 $1,500 $1,620 $2,000 $2,160 $2,500 $2,700 $1,000 $750 $810 $1,000 $1,080 $0 $75,000 $100,000 $150,000 $200,000 $250,000 Class 4 Class 7 Class 10 Source: Mississippi State Rating Bureau, July 2011 Prepared by: Slaughter & Associates, PLLC 28

29 $6,000 Fire Insurance Rate Comparison Homeowners Masonry Construction $5,000 $5,050 $4,000 $4,040 $3,000 $3,030 $2,300 $2,300 $2,000 $2,020 $1,840 $1,840 $1,515 $1,380 $1,380 $1,000 $690 $690 $920 $920 $0 $75,000 $100,000 $150,000 $200,000 $250,000 Class 4 Class 7 Class 10 Source: Mississippi State Rating Bureau, July 2011 Prepared by: Slaughter & Associates, PLLC 29

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