NASH: A closer look at annexation

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Columnist Matt Nash, photographed July 22, 2009. Staff photo by Kevin McGloshen

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September 3, 2010

By MATTHEW NASH Local Columnist The News and Tribune Fri Sep 03, 2010, 12:32 AM EDT

> SOUTHERN INDIANA — I am certain that if you were to do a poll of the citizens of New Albany most of them would not know where the city limits end. I am sure that many do not realize that the area on Charlestown Road just past the Interstate 265 interchange is not within city limits. Most people believe that places like Meijer and The Great Escape Movie Theater are in the city of New Albany. Actually the area sits just outside of the city and out of its taxation jurisdiction.

The New Albany city council is currently contemplating adding that area to the city. The administration claims that by adding the area it will increase the tax base by $700,000 with only minimal cost. On Tuesday a public hearing and second vote was taken with the final decision to be made by the end of the month.

At the public hearing several business owners and their representatives came forward to speak against the proposal. They complained that raising their taxes was unfair and would cause some small businesses to close. They said that if the council would move forward on annexation it would cost our community jobs.

The businesses that sit just outside of New Albany benefit from their relationship with the city. The people that shop at their stores and buy their goods for the most part live in the city of New Albany. Their customers travel on roads that were built, to great benefit to these businesses, by the city of New Albany. Most of their customers also pay taxes to the city of New Albany. Why should these business be exempt from paying their fair share?

The city council has a duty to its citizens to do what is best for them. For many years they have been struggling balance the budget and now the administration has given them an opportunity to increase its tax base without raising taxes on its citizens, and some on the council are dragging their heals.

One point that had been brought up was the city’s responsibility concerning debt of the New Albany Township Fire District. Originally it had been reported that the City of New Albany would responsible for $2 million in debt of the fire district. It was clarified that the city would only be responsible for a percentage of the debt based on the amount of property (around 5%) that was being absorbed. This was estimated to be around $16,000 a year which is hardly a deterrent to annexation.

Some people were concerned that raising the tax on these businesses in the middle of the current economic downturn. I understand that this would be a concern but it also is misleading. If the city goes through with the annexation plans the tax would not take effect and no extra money would be owed for two years. This gives businesses plenty of time to make adjustments before the change.

A man claiming to represent Meijer spoke about the impact that the new tax would have on that business. He claimed that it would increase their tax responsibility by 49 percent. Some concerned council members were worried about what affect that would have on their business. What the council members did not realize is that currently Kroger, Wal-Mart and Target pay taxes at the city’s tax rate. They have all managed to stay in business in town for many years. What makes Meijer so special that they shouldn’t pay the same rate as others?

1st district councilman Dan Coffey was a little dismayed at the process of notifying of the people that would be annexed. By statute, the property owner of record was mailed the notification. Since much of the property is business, this meant that many of the notifications went to the landlord, the person who is ultimately responsible for the property taxes. The people that lease the property in questions claimed that they have been left out in the dark about the plans. Mr. Coffey seemed to suggest that notifying those affected by going door to door would have been more appropriate.

Annexation has been talked about for many years. It is clearly the next step in the growth in the City of New Albany. For anyone to claim that they did not realize that this was coming has been out of touch or is lying.

The New Albany City Council has a responsibility to all of the citizens of New Albany. The only way to balance the budget and maintain the services at the current level is by increasing the tax base. If $700,000 can be added to the general fund without raising taxes, it only makes sense to proceed with this annexation plan. It is the only logical step to benefit every citizen of the city of New Albany.

Matthew Nash thinks there should be a Constitutional Ammendment banning more than one city council meeting in the same week. He can be reached at dmatthewnash@ gmail.com

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