Three neighborhoods south of Seymour targeted for annexation will remain outside the city’s boundaries for now.
The city council had limited discussion Monday on a proposal to annex the Ashwood area behind Home Depot, the Hoover subdivision off South Walnut Street and The Highlands southwest of the city on the former Elks Country Club property.
The annexations would have increased the city’s size by more than 1,000 acres and its population by around 250 households with the expectation for more homes to be built in the future.
To proceed with the process, the council first needed to adopt a fiscal plan detailing how much money the city would have to spend to provide services to the areas and how it would pay for the growth. Adoption of that plan was shot down by the council in a 5-1 vote with one member, Lloyd Hudson, absent.
The biggest expense would come from extending city water service to the Ashwood neighborhood and adding fire hydrants there to provide improved firefighting capability. That cost was estimated to be around $1.1 million and would be shared with Indiana American Water Co.
The city’s portion would be around $400,000, according to a cost analysis prepared by Reedy Financial.
Other expenses would include the need for an additional police officer ($60,000); costs for road maintenance ($30,000); and the purchase of additional trucks for trash and yard waste collection and snow removal ($720,000).
Total revenue from the annexations would generate around $200,000 the first year. That amount would increase to roughly $300,000 in six years.