Opinion ID: 1564070
Heading Depth: 1
Heading Rank: 32

Heading: Factor 4: Jackson's financial ability to make the improvements and furnish municipal services promised.

Text: ¶ 90. This Court has set forth the following factors the trial court may consider in determining whether a municipality has the financial ability to provide municipal services: (1) present financial condition of the municipality; (2) sales tax revenue history; (3) recent equipment purchases; (4) the financial plan and department reports proposed for implementing and fiscally carrying out the annexation; (5) fund balances; (6) the City's bonding capacity; and (7) expected amount of revenue to be received from taxes in the annexed area. Id. at 980-81. ¶ 91. Jackson calculated the total projected cost of improvements and services in the PAA over a five-year period to be $14,933,979. Jackson also calculated the projected revenue for the same period to be in excess of $20,000,000. Jackson asserts the annexation of the PAA will pay for itself. ¶ 92. Jackson points this Court to expert testimony that Jackson historically has enjoyed a positive fund balance. Jackson further asserts that its bonding capacity and bond ratings reflect the city's good financial health. Jackson's capacity for further debt is $85,037,466 under the Fifteen-Percent Rule and $121,812,458 under the Twenty-Percent Rule. Jackson's bond rating is A from Standard and Poor's and A1 from Moody's. ¶ 93. BI contends that Jackson has failed to provide an appropriate level of services to its citizens. [14] BI points to evidence that Jackson has failed to hire a recommended level of police officers. BI also points to testimony that Jackson needs to increase revenue by broadening its tax base. The Objectors argue the record is devoid of evidence that the revised PAA will pay for itself upon annexation. ¶ 94. After due consideration of the evidence under this factor, the chancellor found that Jackson's annexation of four square miles is financially feasible. Conversely, the chancellor determined that annexation of the entire PAA would place a financial strain on Jackson. The chancellor reiterated that Jackson recently had annexed land (portions of Parcel 2 and 3), and Jackson will need to provide services and improvements to those areas. ¶ 95. While Jackson presented evidence it has the financial ability to provide services to the entire PAA, this evidence was appropriately considered by the trial court in light of Jackson's recent annexations. The record supports the chancellor's determination that the annexation of the revised PAA is financially feasible.