Opinion ID: 1564070
Heading Depth: 1
Heading Rank: 19

Heading: Factor 12: Whether the cost of operating the municipality is prohibitive.

Text: ¶ 55. Jackson reiterates its contention that BI has failed to propose a specific plan for municipal services and infrastructure. Jackson further argues that BI's six-million-dollar budget is insufficient to fund all of the proposed departments unless the municipal services will be extremely minimal. Jackson also argues that it is more cost-efficient for it to provide services to the PIA/PAA through annexation. ¶ 56. Conversely, BI argues the testimony of its experts proves that the tax base of the PIA is more than sufficient to support incorporation. BI also asserts that the revised PIA produces a majority of the PIA's revenue, and with less land to service, the cost of incorporation is not prohibitive. ¶ 57. The chancellor found BI has viable plans to increase police protection and fire protection in the PIA. The chancellor acknowledged that BI has a realistic plan to supplement the Sheriff's Department or provide a municipal police department. The chancellor also found reasonable BI's plan to enhance the existing volunteer fire department or create a full-time fire department. The chancellor relied on expert testimony that established the incorporated area will continue to utilize water services provided by Jackson with long-term plans to purchase the system. The chancellor also found that BI plans to use Jackson's Trahon Waste Water Treatment Facility for the treatment of sewer. The trial court noted BI plans to construct interceptor lines to connect with existing sewered areas. The chancellor concluded the implementation of ordinances will control sewer services and future developments, and will also improve storm water management. The chancellor also reiterated BI's plan to provide a public works department. ¶ 58. The chancellor also evaluated the various sources of funding available to the PIA. He relied on expert testimony that established that the tax base of the PIA (and the revised incorporated area) was more than sufficient to provide revenue for a municipality. The trial court also heard testimony about the various sources of available municipal financing, such as: community development block grants, an economic development grant, public facilities grant, CAP loan, TIF, State Revolving Loan Fund, CMPDD, NRCS, EPA, and revenue funds. The chancellor found that fees for ordinance enforcement could be generated through the general fund, tap fees, inspection fees, and impact fees. The chancellor concluded there was clear evidence that the cost of incorporating the revised PIA was not prohibitive. ¶ 59. The chancellor's findings for factor twelve are supported by substantial evidence. While annexation by Jackson may be more cost-efficient, the PAA leaves out a majority of residents who are in need of municipal services. The revised incorporation area has sufficient sources of funding and revenue and it serves a majority of the area's residents.