Mayor: Vincennes would net $1.3 million a year with proposed annexation

Each resident in the areas will soon receive the fiscal plans that outline just how much the city will have to spend to extend services there and how much more it stands to make in tax revenue.

“I think (the plans) paint a pretty good picture,” the mayor said standing next to a table piled to its edges with boxes, envelopes and pre-addressed labels. “And again, we went into this to look at all of these areas, but that doesn't mean we will end up annexing all seven.

“And for those who argue that their taxes will double, I encourage you to look more closely at your taxes. Many of you are already at the caps, so you won't pay more. And you'll be extended city services as well.”

Yochum said in the five days since announcing his annexation plan to the city council, he has received multiple phone calls from those living within the targeted areas who are worried about how it will affect their taxes and daily lives. Some of them worry about their taxes going up, others worry about a sudden city police presence in their previously quiet neighborhoods and still others worry about the possibility of sidewalks being built outside their homes.

“I understand a lot of people like the idea of living in the country,” he said. “But I'm not moving your house with this. You'll still be living in the country. It's just that the country could now come with the convenience of city services.

The four largest of the areas targeted for annexation are to the city’s northeast. Areas 5, 6 and 7 are to the south side and significantly smaller.

Area 7 extends out Willow Street and includes the unincorporated area just before U.S. 41, while Area 6 includes the Hazelwood subdivision and other surrounding neighborhoods out Sievers Road.

Area 5 includes a small area out Indiana 61, and Area 4 is composed mainly of the Ridgeview, Hyde Park and Deer Creek housing additions.

Area 3 includes the Fox Ridge area, although not the proposed county park, and Area 2 includes areas out Old Bruceville Road, including Warren Estates.

Area 1 is between U.S. 41 and Old U.S. 41 north of the city as well acreage out toward Ouabache Trails Park.

The fiscal plans, put together by Indianapolis' Crowe Horwath, address exactly how much the city will have to invest in order to properly service the residents living within the seven areas. In all, the plan would add 1,235 parcels and about four square miles, mainly single-family residential.

All seven areas would also increase the city's assessed valuation by more than $100 million.

Citing the Bureau of Justice Statistics, which suggests at least 2.3 officers for every 1,000 in population, annexing the seven areas would mean the addition of six police officers, each at a cost of $71,000, and it would also cost another $223,000 in street and sanitation costs per year.

Fire protection increases are minimal as the areas are already protected by either Vincennes Township or Palmyra Township Fire Protection Districts, although if the annexations are successful, the city will have to take on a very small percentage of any debt either may carry.

Vincennes Water Utilities, however, doesn't fare as well, especially if rates stay as they are.

The city would need to extend sanitary-sewage services out to many of the residents living within the areas. In all, it would require a bond sale for more than $16 million, with annual payments for each area ranging anywhere from $50,000 per year up to more than $300,000.

And since many of those living in these designated areas already have city water — and pay higher county rates — that portion of the utility's revenue would be cut in half.

Kirk Bouchie, general manager of Vincennes Water Utilities, said its governing body, the Utilities Services Board, has in previous years looked at possible annexation as it pertains to the utility, and it's portions of that old study, done in 2006, that were handed over to Crowe Horwath for the current projections.

“I can't say with a lot of confidence just how this would affect our rates, good or bad,” Bouchie said. “It's too early in the process. But I look forward to delving more into those plans with the mayor, Crowe and the city council, to determine exactly what kind of an impact it would have.”

Yochum indicated the city wouldn't hang the utility out to dry, so to speak.

“That's what we have to decide. Do we take some Economic Development Income Tax dollars and set those aside each year for those payments?” the mayor asked rhetorically. “Or how best do we handle that?

“These are all things we have to determine.”

The public, namely those that would be affected by the annexation plan, will have a chance to ask questions and voice either concern or support for it at a public meeting already set for 6 p.m. May 18 at City Hall, 201 Vigo St.

Yochum has fast-tracked the annexation plan because it’s possible the process will get even more difficult for cities after July 1.

State lawmakers are throwing their support behind proposed legislation that would require municipalities wanting to annex to get support from at least 51 percent of the residents living within the proposed areas before they can proceed.

Under current state law, 75 percent of the affected property owners must sign a petition in order to remonstrate against an annexation. Those homeowners also have to pay for any attorney fees and court costs that may occur while fighting the annexation.

If the city acts before June 22, it wouldn't be subject to the stricter guidelines if they're approved.