OUR TOWN
Annexation keeps taxes down during inflationary times
MAYOR PHILLIP SPENRATH

Will gasoline prices ever stop rising? Over the past year, the cost of everything is soaring out of control. As citizens of El Campo, the last thing we need will be sky-rocketing taxes. We must find a way to keep our taxes minimal while continuing to provide the quality services that our community expects and demands.

Although the primary goal in annexation is to protect the integrity and future growth of El Campo, the oil industry's continued increase in petroleum prices has steered most residents into focusing on the financial impact of annexation.

Because gasoline has risen drastically from last summer's $2.46 per gallon, most local businesses, including your City Council, will have an extremely difficult time in continuing to fund today's services with last year's income. Further, eliminating financial support for the Boys and Girls Club, Little League, Aquatic Center and Northside Center will not be deemed a favorable option by most citizens. Thus, we are forced to find new, previously unrealized, sources of income.

There are two obvious solutions that will allow the City of El Campo to continue providing improved drainage, paved roads, emergency service support and quality of life services: 1) ask the outlying daily users of our roads, drainage, emergency services, etc. to help pay for these programs and services that they have been freely enjoying for years; or 2) significantly raise the taxes of existing city residents.

Although hundreds of our outlying neighbors receive their mail stamped "El Campo, Texas," they do not financially share in the upkeep of the very roads they drive on to get to the post office, schools, ball games, shopping centers or places of employment. In correlation, as residents and taxpayers of Wharton County, regardless if we live within or outside the city limits, we all share in the maintenance and improvements of county roads.

A majority of El Campo's recent annexation projections should pay for themselves in less than 10 years. Pursuant to Wharton County Appraisal District 2007 valuations, the four recently annexed areas have an overall ad valorem / personal property tax value of $25,461,413. At our city's current tax rate of $.559 per $100 of value, these areas will annually generate in excess of $142,500 in NEW and previously unrealized financial support to our city. In addition, there will be thousands of additional Sales Tax dollars and utility fees that will increase the newly realized contributions in excess of $200,000 per year.

Regionally, most of the aforementioned taxable value will be derived from the North S.H. 71 / Sandy Corner area and the South Meadow Lane / U.S. 59 South area. The lands located across from the new Middle School and near Wharton County Electric Cooperative currently generate minimal tax revenue and the cost of providing utilities should not be excessive.

Most of the fields surrounding the new Middle School and WCEC entered into agricultural non-development agreements and thereby were protected from annexation by state law. Both of these latter two areas were primarily joined into the city to protect the integrity and future development of our eastern gateway and Middle School surroundings.

The U.S. 59 bypass / South Meadow lane area has a $11,471,180 estimated tax value. Although annexation will cost $635,000, this region will annually generate over $75,000 in newly recognized tax dollars, utility costs and sale tax proceeds each year. While this extension was primarily annexed to protect the integrity and future development of the bypass area, this region should more than pay for itself in eight years and thus generate significant revenues to offset other utility costs and city-sponsored programs.

The Hwy. 71 North /Sandy Corner region has a $13,414,600 estimated tax value. With the use of $865,000 in existing city saving, this annexation cost will be reduced to $2,915,000. While this area was primarily annexed to 1) protect the safety and development of our northern gateway, and 2) provide much needed utilities to the Sandy Corner residents, this region will more than pay for itself before the full term of its debt service.

My fellow citizens, for many of you, our recent annexation project comes down to money. The $100,000s of newly realized sales taxes, property taxes and utility fees will more than pay for our entire annexation project. As oil companies continue to drive prices out of control, why should city residents have to solely bear the burden of having our taxes raised hundreds of dollars in order to maintain El Campo's infrastructure?

Everyone who calls El Campo home should feel obligated to share in maintaining and providing updated emergency vehicles, proper drainage around our schools and stores, and safe roads for the entire community that we all, inside or outside the city limits, call home.