Opinion ID: 1890460
Heading Depth: 2
Heading Rank: 2

Heading: fairness/equity evaluation

Text: ¶ 65. This Court in City of Columbus stated, Although we retain our `indicia' for the purpose of today's decision, we emphasize that fairness to all parties has always been the proper focus of our reasonableness inquiry. Thus, we hold that municipalities must demonstrate through plans and otherwise, that residents of annexed areas will receive something of value in return for their tax dollars in order to carry the burden of showing reasonableness. 644 So.2d at 1172. Additionally, this Court in the case of In re Matter of the Extension of the Boundaries of the City of Jackson, stated, the Court is required to balance the equities by comparing the City's need to expand and any benefits accruing to residents from the annexation with any adverse impact, economic or otherwise, which will probably be experienced by those who live in and own property in the annexation area. The mere fact that residents and landowners will have to start paying city property taxes is not sufficient to show unreasonableness. 551 So.2d at 867-68. ¶ 66. The Chancellor used these standards in evaluating the fairness/equity of the proposed annexation. She used substantial, credible evidence in making this evaluation. ¶ 67. The Chancellor found that the Objectors' main complaint of higher taxes cannot defeat the proposed annexation. As stated above, this Court has found that increased taxes alone is not enough to find an annexation unreasonable. Id. The payment of City taxes would be offset by the savings on fire insurance the landowners in the PAA would receive. Objectors argue this is irrelevant since many residents in the PAA already receive the Class 7 fire insurance rating discount. This ignores the fact that any such rating benefit is currently voluntary by the insurance company since these residents do not live in a Class 7 rated zone. The residents would also receive a decrease in their water and sewer rates. Also, the proposed tax impact on area residents appears to be minimal. The additional net taxes on uncultivated and cultivated land would be between $6.16 and $57.42 annually depending on acreage. ¶ 68. Additionally, the residents and landowners in the proposed annexation area would receive improved police protection, fire protection, public works, streets and drainage maintenance, paving of streets, street lighting, zoning, building codes, planning and enforcement, water, and sewer services. These benefits are well worth the additional taxes residents would be forced to pay. When the equities are balanced, the evidence shows the proposed annexation to be reasonable.