Annexation cost example, cont.

The following example shows the effect on the town's tax revenue if they were to annex the proposed apartment complex property into the village.  This analysis shows the effect of annexation before development of the apartments.

Notes:

The Town Council has claimed that annexation of property will decrease their revenue and make it difficult to "pay their bills".  The analysis above shows the effect that annexation of the proposed apartment complex property will have on their income. 

Since the only loss of revenue would occur in the town-outside-village tax rate, their total tax revenue would decrease by $122.25. 

The effect on TOV property taxpayers would be modest.  For example, a home assessed at $100,000 would see a tax increase of 4.64 cents/year. 

Given these numbers, it is difficult to understand the Town Council's claim that annexation will make it difficult to pay their bills.  Because a single parcel of property is such a small portion of the town's overall property, annexation of that parcel has a very small effect on town tax revenue. Moreover, if the availability of municipal water and sewer service, which would become available through annexation, resulted in a development occurring on this parcel of land, the town's net revenue would increase substantially, as shown on a previous page.  Annexation, and the services it brings, is actually a way for the town to increase the value of its tax base.