OUR TOWN
All taxpayers must share initial annexation costs
MAYOR PHILLIP SPENRATH

As the City of El Campo prepares for the future, all citizens who call El Campo "Home" must unite to improve our community and quality of life. While its benefits will greatly outweigh its expenses, Annexation will initially affect both the current city resident and the newly "soonto be" resident.

At present, the estimated cost for annexing all designated areas is $7.2 million.

It is important to remember that your City Council has the ability to eliminate some portions of the designated areas. While it is imperative that we protect our outer boundaries for future growth, your City Council is also faced with the realization that various portions of this land are agriculture and consequently the landowners may chose to circumvent annexation by signing the Non- Development Agreements.

Consequently, annexation costs may be significantly reduced by as much as $2 to $3 million.

From the Utility General Fund Balance, your City Council and staff has designated $500,000 of surplus savings to be expended toward our total annexation costs. In addition, city staff is currently in the process of completing a "cost analysis study" on the fees and services that our city currently charges for providing citizens with sewer and water.

Through area research and local studies, staff has determined that El Campo's current Water and Sewer rates are significantly lower than rates charged by neighboring cities of similar size and population.

Further, El Campo has not implemented a rate adjustment in several years. Consequently, city staff is contemplating a potential utility rate increase for all customers. For example, a $3 rate increase, over a designated period, could be used to offset up to $2 million in annexation expenses.

Through employing a utility increase, reducing the agricultural annexation acreage and designating funds from the ending Utility Fund Balance, we must still account for approximately $2 million in remaining annexation expenses.

The remaining balance can be funded through a Certificate of Obligation bond or some form of utility fee adjustments.

The Good News!! I have only addressed how to pay off the Annexation Debt with NO consideration for newly realized tax revenues or utility fees. The truth of the matter is that El Campo WILL be realizing significant amounts of new City revenue that will be generated through Property Taxes, Sales Taxes and Utility Fees from most, if not all, of the designated annexed areas.

Further, by studying current Wharton County Appraisal District tax figures and State of Texas sales tax data, we can clearly see that many of these designated areas have the financial potential to fully pay for their entire annexation (all aforementioned costs) within a significantly short period of time.

Once paid off, the continuing revenue from these newly annexed areas can then be applied to offset future city projects like maintenance, salaries, capital improvements and even additional annexation plans.

In the interim, we must ALL share in the initial investment expense of annexation.

Prior to the actual utility connection date, current city residents will be funding most of the new annexation through increased utility fees and the use of existing Utility Fund Balance dollars. Until connections are available (some areas may take 2 to 4 years), new resident assistance will be limited to contributing property taxes (no utility fees).

Once connected, the new residents will then be required to connect their home water and sewer lines out to the city system. This overall connection could potentially cost the new resident $1,000 to $3,000.

Hopefully, our new residents will be able to use this 2- to 4-year notice to anticipate and prepare for these future connection expenses. Please remember, your City Council will immediately initiate the construction of Utilities. Our goal is to provide city services and utilities to the more populated areas as fast as possible.

El Campo is entering a very exciting period of economic growth and development. As citizens, we must unite as a community in order to protect the future growth and integrity of our hometown.

As your Mayor, my primary objective continues to be preparing El Campo for the future while maintaining our community's friendly small-town atmosphere.

- Comments may be addressed to askthemayor@sbcglobal.net.