Opinion ID: 1124080
Heading Depth: 1
Heading Rank: 5

Heading: whether the chancellor's decision, in refusing to allow the city of southaven to annex the territory it sought west of i-55, was clearly erroneous?

Text: This Court's standard of review is very limited. The Court can only reverse the Chancery Court's findings as to the reasonableness of an annexation if the chancellor's decision is manifestly wrong and is not supported by substantial and credible evidence. Matter of Enlargement of Corp. Limits of Hattiesburg, 588 So.2d 814, 819 (Miss. 1991). If there is credible, albeit conflicting evidence, this Court will defer to the Chancery Court's findings. 588 So.2d at 814, citing, Bassett v. Town of Taylorsville, 542 So.2d 918, 921 (Miss. 1989). In the context of conflicting evidence, this Court will not disturb a lower court ruling unless it can be said that from all the evidence such findings are manifestly wrong. 588 So.2d at 819, citing, Bassett, 542 So.2d at 921; McElhaney v. City of Horn Lake, 501 So.2d 401, 403 (Miss. 1987); Extension of Boundaries of City of Biloxi v. City of Biloxi, 361 So.2d 1372, 1376 (Miss. 1978); City of Picayune v. Quick, 238 Miss. 429, 117 So.2d 718 (1960). See also, Enlargement of Boundaries of Yazoo City v. Yazoo City, 452 So.2d 837 (Miss. 1984). Southaven asserts that the issue before chancery courts in annexation proceedings is reasonableness. This Court has set forth the standards for consideration in determining the reasonableness of an annexation request. These indicia include: 1) the municipality's need for expansion; 2) whether the area sought to be annexed is reasonably within a path of growth of the city; 3) the potential health hazards from sewage and waste disposal in the annexed area; 4) the municipality's financial ability to make the improvements and furnish municipal services promised; 5) the need for zoning and overall planning in the area; 6) the need for municipal services in the area sought to be annexed; 7) whether there are natural barriers between the city and the proposed annexation area; 8) the past performance and time element involved in the city's provision of services to its present residents; 9) the impact of the annexation upon those who live in or own property in the area proposed for annexation, Western Line Consolidated School District v. City of Greenville, 465 So.2d 1057, 1069 (Miss. 1985); 10) the impact of the annexation upon the voting strength of protected minority groups, Enlargement of Boundaries of Yazoo City v. Yazoo City, 452 So.2d 837, 842-43 (Miss. 1984); 11) whether the property owners and other inhabitants of the areas sought to be annexed have in the past, and for the foreseeable future unless annexation will, because of their reasonable proximity to the corporate limits of the municipality, enjoy the (economic and social) benefits of the proximity to the municipality without paying their fair share of taxes, Texas Gas Transmission Corp. v. City of Greenville, 242 So.2d 686, 689 (Miss. 1971); Forbes, et al. v. Mayor & Board of Aldermen of City of Meridian, 86 Miss. 243, 38 So. 676 (1905); and 12) any other factors that may suggest the reasonableness vel non. Bassett v. Town of Taylorsville, 542 So.2d 918, 921 (Miss. 1989), citing City of Greenville v. Farmer's Inc., 513 So.2d 932, 941-942 (Miss. 1987). 1. NEED FOR EXPANSION Lanny McKay, of the Mississippi Department of Economic Development, testified that forty-three percent (43%) of Southaven was undeveloped in March 1989. He stated that this percentage, in conjunction with the amount of Southaven's presently available land which is constrained from development by the flood plain and close proximity to the Memphis Airport, would not be a negative factor in the city's annexation request. To the contrary, he stated that he has worked on several other annexation ordinances, where the municipality had higher percentages of vacant and available land, and where annexation was found to be reasonable. Michael Bridges, a developer and consultant for municipal annexations, testified that the flood plain functions as a severe restricting factor to any type of development for Southaven. It is not impossible to build on a flood plain, yet Bridges stated that the two solutions, either raising the level of the land to at least one foot above the flood plain or flood proofing the building, are very expensive. Bridges stated that there is a ridge line which impinges upon Southaven's development and growth pattern. He classified this as a constraining element for Southaven's efforts to supply water and sewage services to areas on the opposite side of this natural impediment. Bridges testified that Southaven has experienced rapid and extraordinary residential growth in recent years. He further stated that Southaven does not have adequate land resources to meet the residential growth needs it will face in the immediate future. Bridges testified that Southaven's annexation request was reasonable. Carl Allen, director of planning and development for Southaven, testified that Southaven is steadily growing and needs to expand. He stated that two hundred and twenty (220) homes within Southaven are considered to be in the buy-out zone that falls in close proximity to the Memphis Airport flight pattern. These homes have been deemed uninhabitable, due to the noise levels, and this has forced numerous people to simultaneously search for homes. Allen stated that Southaven currently has several residential developments in progress, but that a number of these are nearing capacity. Although these areas are not completely filled, he stated that there is a need to expand to areas where development is not approaching completion. Allen also testified that Southaven needs to expand to the west in order to incorporate the western portion of Plum Point, a residential and commercial Planned Urban Development, (PUD) which exists easterly and westerly of I-55. Allen stated that there would be less confusion in having the whole area under one jurisdiction. Pete Aviotti, a landowner and developer for the Plum Point Development, testified that the airport buy-out has created tremendous development for the Plum Point area. He stated that this has caused growth to Plum Point Village and that it would be better for the whole PUD to be under one jurisdiction. Southaven is a much more populated municipality than Horn Lake, and due to natural restraints, such as the flood plain, ridge line, and airport buy-out noise zone, this community is faced with meeting the needs of rapid residential growth and less than nine hundred (900) available acres to offer for development. Horn Lake, on the other hand, is contending that it needs more room for commercial expansion. However, numerous experts testified that Horn Lake's current municipal boundaries can commercially double in size before new territory is necessary. At the time of trial, there were over eight hundred and thirty (830) acres available for commercial development within Horn Lake's boundaries. The need for expansion has been demonstrated and the need for incorporating all of the PUD under one jurisdiction has been documented. However, the chancellor concluded that Southaven did not need to expand into the territory west of I-55 as follows: 1) the buy-out zone could be used for commercial purposes, which totally disregards the fact that two hundred and twenty (220) residential structures, located herein, can no longer be used for family dwelling; 2) few residents are likely to leave the remaining airport fly over zones on account of noise, which totally disregards the fact that housing costs in the area will rise as builders will have to comply with increased building specifications to dampen aircraft noise; 3) Southaven has substantial territory for expansion to the east and south, which disregards the fact that Plum Point Development is split by I-55 and has been annexed by Southaven up to the easterly boundary of I-55 and would, if contained within one jurisdiction, function more efficiently; 4) Aviotti and Ross, two major landowners in the contested area, testified that there were no present plans for development for the area proposed for annexation and Bridges testified that Southaven needs to annex undeveloped land; however, both facts of importance were not properly weighed by the chancellor; and 5) Southaven's original ordinance did not include any land west of I-55, and was only included at the request of area landowners who did not want to be annexed by Horn Lake, which overlooks Mayor Cates' testimony that Southaven desired this land because it is very easily accessible property that is vacant and can be controlled by Southaven as it grows. The Plum Point Village development consists of six hundred and forty-four (644) acres, of which one hundred and twenty-one (121) acres are located west of I-55, and are under the jurisdiction of the PUD. The northern boundary is Nail Road. The southern boundary is Church Road. The eastern boundary is Elmore Road. However, only two hundred and twenty-one (221) acres have been developed and they consist of light industry zones, heavy commercial zones, and single family residential lots. In Matter of Boundaries of City of Jackson, 551 So.2d 861, 865 (Miss. 1989), this Court held that Jackson's apparent need for (potential for) expansion strongly suggests the annexation is reasonable. Southaven's need for expansion has been documented by numerous expert and lay witnesses, and the constraints upon development within their current boundaries have also been substantiated. The Plum Point development, when completed, will serve a variety of residential and commercial needs. Southaven has been granted its annexation request for the areas east of I-55 and it was manifest error to deny the annexation proposal west of I-55. With Southaven's rapid rate of growth, there is a need for expansion, which will be most effectively fulfilled by granting the requested proposal west of I-55. The chancellor's conclusion on this finding is not supported by the substantial and credible evidence. See generally, Matter of Boundaries of City of Vicksburg, 560 So.2d 713, 716 (Miss. 1990), citing Bassett, 542 So.2d at 921, citing McElhaney, 501 So.2d at 403; Extension of Boundaries of City of Biloxi, 361 So.2d at 1376. 2. PATH OF GROWTH Corrine Fox, President of Continental Consultants, Inc. and the expert planning witness for Horn Lake, conceded that the contested area could certainly be in the path of growth of both Horn Lake and Southaven. She also testified that I-55 would not serve as a barrier to the area Horn Lake proposed for annexation. Carl Allen, Lanny McKay, and Michael Bridges, each concluded that the area west of I-55 was in Southaven's path of growth. McKay indicated that the areas that were classified as within the growth path of Horn Lake were not the same areas that Southaven proposed to annex. Michael Bridges noted that without qualification, the area sought for annexation by Southaven lies within its path of growth. Mayor Cates of Southaven also testified that the area west of I-55 is certainly within Southaven's path of growth. In his opinion, there were no natural barriers that would keep Southaven from extending services. Ben Smith, the Horn Lake City Engineer, Joy Black, the Horn Lake Planning Director, and Mayor Thomas, each concluded that the area west of I-55 was the commercial growth corridor of Horn Lake and was within Horn Lake's path of growth. Black testified that if Southaven were allowed to annex west of I-55, this would completely block Horn Lake's path of growth to the east of their existing municipal boundaries. Chancellor Bizzell concluded that the area west of I-55 was not in Southaven's path of growth. According to Matter of Boundaries of the City of Jackson, this factor requires only a showing that the area to be annexed is, in a path of growth, not necessarily the most urgent or even the city's primary path of growth. 551 So.2d at 865. Also, this Court has previously held that our law gives municipalities the discretion, based on convenience and necessity, to choose between various paths of growth by annexation. Ritchie, et al. v. City of Brookhaven, 217 Miss. 860, 65 So.2d 436 (1953). The chancellor held that Southaven has previously moved to the south and east, not west, and there is no planned growth for the area west of I-55. Regrettably he only considered whether this area was in Southaven's primary path of growth and did not consider the fact that this area only needed to be in a path of Southaven's growth. These facts are distinguishable from Matter of Enlargement of Corp. Limits of Hattiesburg, 588 So.2d 814 (Miss. 1991), because the evidence presented does not indicate that the area west of I-55 is no longer in a path of growth of Southaven. See generally 588 So.2d at 822. In fact, the evidence conclusively demonstrates that it would be in Southaven's best interest to expand into an area including, and contiguous to, the remainder of the Plum Point PUD. The chancellor decided that a new development will be needed in this area and that none is planned. In addition, the chancellor concluded that Southaven has not provided any services or other activities in the area. Yet, the chancellor's conclusion fails to account for the testimony of Smith, Southaven's City Engineer, when he said that much of the area proposed for annexation will have improvements made to it by the developers themselves. These improvements will then be dedicated to Southaven by the developers. Thus, much of the municipal development will actually come from the developers themselves, not Southaven, and the chancellor's characterization of Southaven's performance was at best hypothetical. This Court does not sit to redetermine questions of fact. Johnson v. Black, 469 So.2d 88, 90 (Miss. 1985). However, when the chancellor overlooks the fact that path of growth can be any path of growth and not just the path of growth, his decision is erroneous. Unlike the chancellor in Matter of Enlargement of Corp. Limits of Hattiesburg, 588 So.2d at 827, the chancellor here failed to consider all of Southaven's potential paths of growth when he ruled out the area west of I-55 as within the normal path of Southaven's growth. I would find that the area west of I-55 is within a path of growth of Southaven and that the chancellor's decision is not supported by the evidence. See generally, Matter of Boundaries of City of Vicksburg, 560 So.2d 713, 716 (Miss. 1990), citing Bassett, 542 So.2d at 921, citing McElhaney, 501 So.2d at 403; Extension of Boundaries of City of Biloxi, 361 So.2d at 1376. 3. POTENTIAL HEALTH HAZARDS The issue of septic tanks was discussed during trial, but neither party contends that there are threatening health hazards in the area proposed for annexation. This Court has conceded that septic tanks are a relatively insignificant factor in the overall reasonableness determination. Matter of Boundaries of the City of Jackson, 551 So.2d at 866. The chancellor concluded that since this area was within the Horn Lake Water Association water and sewage franchise, the relatively few septic tanks in the area are a concern which will be addressed by them whenever a municipal sewage system becomes necessary. The absence of health hazards is supported by the record. Neither participant contests the chancellor's finding. The chancellor's finding is supported by substantial and credible evidence. Matter of Boundaries of City of Jackson, 551 So.2d at 866. 4. FINANCIAL ABILITY The Court recognized the uncontested financial ability of Southaven to make improvements and furnish the necessary services in the area proposed for annexation. 5. NEED FOR PLANNING AND ZONING Horn Lake does not contest the chancellor's finding that DeSoto County provides adequate protection from improper zoning and planning. Southaven's argument is that the proposed relocation of Northwest Community College into the area west of I-55 will increase traffic and congestion in the annexed area; therefore, there is a need to plan and zone before the community college relocates. Southaven has failed to prove that county zoning would be insufficient to meet Northwest's needs, and Southaven overlooked the fact that Dr. Haraway, President of Northwest, testified that the college was not concerned with whether the planning and zoning came from a city or the county. In addition, Southaven also argues that the PUD needs to be under the jurisdiction of a single planning entity. Prior to this annexation request the entire PUD was under the sole jurisdiction of DeSoto County. The developers of the PUD have petitioned for Southaven to annex the entire PUD. There is also testimony, in the form of a petition, that numerous residents along Church Road request the City of Southaven to annex their property into Southaven and provide them with municipal services. In Matter of Boundaries of City of Jackson, 551 So.2d at 867, this Court stated that, where a substantial number of residents in the area have heretofore sought incorporation into the City of Ridgeland would seem to belie the suggestion that the people of the area are content with things as they are. The chancellor concluded that the area is zoned under the county plan and that there were no complaints to the current zoning. This decision, as far as citizen complaints are concerned, fails to interpret the factor delineated above. Furthermore, Pete Aviotti, a representative of the Plum Point development, which the chancellor characterized as a major land owner in the annex area, specifically requested that Southaven annex the entire PUD. Southaven's argument concerning the community college lacks persuasion. However, the resident landowners and area developers have made it clear that their interests are in receiving the municipal services of Southaven. While commercial development may not be immediately forthcoming, this factor should not outweigh these residents' present unhappiness with county control of zoning and planning. The Plum Point development has a need for present zoning and overall planning. It would be detrimental to the construction and operation of this multi-functional urban development to allow the acreage east of I-55 to be developed under the planning and zoning authority of Southaven while forcing the remaining acreage west of I-55 to be developed under the discretion of the DeSoto County zoning and planning authorities. Unlike Matter of Enlargement of Corp. Limits of Hattiesburg, Southaven has demonstrated a convincing present need for zoning and overall planning in the area sought for annexation. See 588 So.2d at 824. Moreover, the area residents demonstrated their unhappiness with their current zoning and planning. Thus, this Court cannot rely on the chancellor's conclusions, as it did in Matter of Enlargement of Corp. Limits of Hattiesburg, 588 So.2d at 824, citing Bassett, 542 So.2d at 921, citing McElhaney, 501 So.2d at 403; Extension of Boundaries of City of Biloxi, 361 So.2d at 1376. 6. NEED FOR MUNICIPAL SERVICES In Matter of Enlargement of Corp. Limits of Hattiesburg, this Court considered the following elements for indicia of reasonableness: fire protection, police protection, garbage collection, street improvements, and water and sewer services. 588 So.2d at 824. The chancellor held that the municipal level services provided: police protection, water and sewer, garbage collection, street improvements, and the like, are adequately provided by DeSoto County. The chancellor's findings, as to these services, were reasonable. However, the chancellor was manifestly wrong in determining that the current level of fire protection was adequate for the proposed annexed area. a. FIRE PROTECTION Fire protection is primarily provided by DeSoto Woods Volunteer Fire Department, with back-up available from either Horn Lake or Southaven. Larry Newton, Horn Lake Fire Chief, testified that DeSoto Woods Fire Department can provide only very limited fire protection to the proposed annexed area because they are unable to respond to day time fire calls. Furthermore, he stated that DeSoto's response time at night is often very slow, with an average response time of ten to twelve minutes. Newton said that this is crucial because a fire doubles in size every thirty seconds for the first minute and thereafter triples in size every thirty seconds. In addition, Newton noted that Southaven, as a full-time fire department, can provide better fire protection. Newton also testified that Southaven has a hazardous material response team, but neither Horn Lake, nor DeSoto Volunteer Fire Department has a hazardous response team. Vernon McCammon, City of Southaven Fire Chief, characterized the DeSoto Woods Volunteer Fire Department as inadequate to provide protection to Plum Point. McCammon stated that, as volunteer fire departments go, DeSoto Woods is not adequate. Mack Bowles, a former volunteer of the DeSoto Woods Fire Department, stated that the DeSoto department provides adequate fire protection for the DeSoto Woods area. Eric Allen, a resident of DeSoto Woods, also stated that he was entirely satisfied with the fire protection extended by the DeSoto Woods Volunteer Department. However, neither individual is a resident of the area Southaven proposes to annex. Joe Shoemaker, a Superintendent of the Public Protection Department of the Mississippi State Rating Bureau, stated that the DeSoto Woods Volunteer Fire Department currently has a fire insurance rating of ten (10). This rating is on a scale of one to ten (10), with ten (10) being the lowest rating. Horn Lake has a fire insurance rating of eight (8). Southaven, on the other hand, has a fire insurance rating of six (6), which means that its residents pay less for monthly fire insurance premiums. The chancellor concluded that fire protection was the primary responsibility of DeSoto Woods, but the chancellor's decision failed to adequately weigh the importance of Chief Newton and Chief McCammon's testimony which seriously questioned the adequacy of the DeSoto Woods volunteer fire department. The chancellor also failed to properly consider the fire insurance ratings in Southaven's favor. See Matter of Boundaries of City of Jackson, 551 So.2d at 868. Thus, the chancellor's conclusion was not supported by the substantial and credible evidence. b. POLICE PROTECTION Tom Long, Southaven's Chief of Police, stated that if Southaven is allowed to annex west of I-55, his department would be able to provide immediate police protection. He testified that the DeSoto County Sheriff's office does the bare minimum that's adequate for law enforcement. Darryl Whaley, Horn Lake's Chief of Police, stated that one of the area problems is the shooting of street signs with shotguns. He alleged that there would be little difference in the capacity of a municipality or a county to control this activity. Whaley testified that there is a present need for municipal level police protection in DeSoto Woods, and that a municipality could respond faster to citizen calls than the county could. Also, numerous residents of DeSoto Woods testified that they felt they were adequately protected by the DeSoto County Sheriff's Department. The chancellor characterized the DeSoto County police protection as superior to that in most rural areas of Mississippi. His finding was reasonable in light of the fact of the sparse population in this undeveloped region. It is undisputed that Southaven, or even Horn Lake, could provide additional police protection. The fact remains that the DeSoto County police protection has not been characterized as inadequate, and the present necessity for such protection is non-existent. Matter of Enlargement of Corp. Limits of Hattiesburg, 588 So.2d at 824. The lack of evidence demonstrating a present need for additional police protection supports the chancellor's conclusion. See Matter of Enlargement of Corp. Limits of Hattiesburg, 588 So.2d at 824. c. WATER AND SEWER SERVICE Mike Forsythe, Director of Public Works for Southaven, stated that Southaven already provides water services for a portion of the Plum Point Village and that Southaven has already developed plans to service additional areas within the annex proposal. In addition, Southaven currently provides sewer service for the Plum Point Village. Mike Bridges, an annexation consultant, testified that the area west of I-55 is in need of municipal level sewage service, which he alleges the Horn Lake Water Association cannot provide. J.W. McElhaney, President of the Horn Lake Water Association, testified that even if growth were to occur in the annexation area, he believed that the Horn Lake Water Association could still service the area. Carl Allen noted that the west side of I-55 is within the Horn Lake Water Association jurisdiction and that Southaven could not provide water and/or sewer service to this area without the permission of the Horn Lake Water Association. There are operational septic tanks in the area west of I-55, and Kirk Embry, of the State Department of Health, testified that the present soil conditions create seasonal problems for sewage disposal. He stated that, during the unusually wet periods of the year, the ground could not fully absorb the sewage. The chancellor reasonably concluded that the water and sewer services, which are the responsibility of the Horn Lake Water Association, will not be affected by this annexation proposal. The evidence presented at trial did not document the existence of any health hazards with the current method of water and sewer services. The soil appears to allow sufficient percolation, except during a small portion of the year, and there was no credible evidence which documented the inadequacy of these systems. See Matter of Boundaries of City of Jackson, 551 So.2d at 866. d. GARBAGE COLLECTION Garbage collection is currently provided twice a week by DeSoto County. If annexation by a municipality is allowed, garbage service would be provided once a week. Garbage pickup by the county is free of charge to the area residents. The current level and manner of garbage collection appears reasonable and sufficient to meet the needs of the DeSoto County residents. There was no indication that the present garbage collection was inadequate. e. STREET IMPROVEMENTS The chancellor noted that Church Road runs east-west through the center of the area Southaven proposes to annex west of I-55. There are no other public streets in the tract. The chancellor concluded that this road is adequately maintained by the county and is within the county's long range plan for improvement. There is no indication that, with the current level of development on Church Road, DeSoto County could not continue to provide adequate maintenance to Church Road. This finding is supported by substantial evidence. 7. NATURAL BARRIERS Pete Aviotti testified that I-55 is not a barrier to development or annexation. Lanny McKay testified that I-55 is no more of a barrier to annexation than it is a barrier at State Line Road. Mike Bridges testified that, proceeding south from the northern boundaries of Mississippi, down to the Louisiana border, almost every city that borders I-55 is on both sides of the interstate. Bridges also testified that this major thoroughfare has not been a barrier to expansion in municipal limits. Ron Smith, an expert in the field of engineering, testified that the interstate would not be a significant barrier to providing services to the area Southaven proposed for annexation. The chancellor concluded that between Southaven and the subject area, for a distance of two miles to the north and two miles to the south, the Church Road underpass is the only practicable crossing for vehicles, pedestrians or utilities. Thus I-55 definitely restricts access and convenience to the proposed territory west of the interstate. The chancellor recognized that I-55 is not an impenetrable barrier but concluded that it does form an effective and permanent barrier between Southaven and the subject area west of I-55. He further decided that there was an overall economy existent here which would be further preserved by not duplicating municipal fire and police protection in the contested area. This Court has previously stated that to simply observe that there are certain manmade barriers such as the interstate ... should not be ignored. Matter of Enlargement of Corp. Limits of Hattiesburg, 588 So.2d at 825. In Matter of Enlargement of Corp. Limits of Hattiesburg, the chancellor concluded that I-59 and the county line separating Forrest and Lamar Counties should be considered natural boundaries. 588 So.2d at 825. In dicta, this Court stated that the Forrest County Chancellor noted that if there were other convincing evidence of the reasonableness of the proposed annexation, then the presence of I-59 and the county line would not have prevented him from granting the proposed enlargement. The chancellor determined that I-55 was not an impenetrable barrier to the extension of Southaven's municipal services west of I-55. When this finding is considered under the totality of the circumstances, it was error for the chancellor to conclude that the annexation should not be confirmed. This Court recognizes that I-55 is in fact a penetrable barrier. We can distinguish Matter of Enlargement of Corp. Limits of Hattiesburg, by weighing this factor, along with the abundant other convincing evidence of reasonableness, in favor of this annexation. Both parties concede that I-55 has not served as a barrier to Southaven's previous expansion west of I-55, two miles north of the area in dispute. Bassett, 542 So.2d at 921, citing McElhaney, 501 So.2d at 403; Extension of Boundaries of City of Biloxi, 361 So.2d at 1376. I do not believe that there is substantial and credible evidence which supports the chancellor's conclusion that I-55 is a barrier which should now serve to prevent the expansion of Southaven west of I-55. 8. PAST PERFORMANCE IN PROVISION OF CITY SERVICES Mayor Cates stated that Southaven annexed new territories in 1988 and thereafter immediately provided the annexed area with fire protection, police protection, and insect control. The chancellor concluded that Southaven has provided excellent services to its residents and offered the same services to its pre-annexation residents as well as its newly annexed residents. This indicium of reasonableness also weighs in Southaven's favor. 9. IMPACT UPON RESIDENTS AND PROPERTY OWNERS The mere fact that residents and landowners will have to begin to pay city property taxes is not sufficient to show unreasonableness. Matter of Boundaries of City of Jackson, 551 So.2d at 868. 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. Matter of Boundaries of City of Jackson, 551 So.2d at 867-868. Southaven has a lower fire insurance rating than either DeSoto County or Horn Lake; therefore, Southaven's annexation of this area west of I-55 would decrease these residents' monthly fire insurance premiums. Thus, substantial evidence supports the chancellor's finding that this would offset any city taxes on homes and automobiles stemming from annexation. The chancellor also found that the residents west of I-55 requested Southaven to annex them because they did not want to be annexed by Horn Lake. He speculated that these residents had no strong objection to remaining in the county. Roe Ross, a large landowner residing near the intersection of Church Road and Highway 51, testified that he signed a petition to have Southaven annex his land. His reasoning was based upon his belief that Southaven could better provide municipal services and was financially stable. He stated that he would be better off if annexed by Southaven. Pete Aviotti stated that Plum Point requested that its entire boundary be annexed by Southaven. In addition, Aviotti identified a petition at trial, which consisted of numerous residents along Church Road who desired annexation to, and the furnishing of, Southaven's municipal services. While Dr. Haraway, President of Northwest Community College, testified that the college did not object to remaining in the county, numerous other landowners and residents desired the services of Southaven, which implies present dissatisfaction with the services received from the county. The financial condition of the annexing petitioner was important to the residents, but those who testified at trial were as, or more, interested in the additional services which Southaven could provide to them. There was insufficient evidence presented to prove that Southaven's annexation would have an adverse impact, economic or otherwise, upon those residents within the proposed annexation area. See Matter of Boundaries of City of Jackson, 551 So.2d at 868. These residents desire to be annexed by Southaven, and as a result of an annexation by Southaven, these residents will have a lower fire insurance rating, decreased fire insurance premiums, and will receive better services in fire protection. In contrast to Matter of Enlargement of Corp. Limits of Hattiesburg, these residents have petitioned Southaven to annex them. See 588 So.2d at 826. They are not content with the level of rural services and want to become recipients of the municipal services which Southaven can offer them. This area will experience a significant positive impact from Southaven's annexation and, while the chancellor correctly held that this impact will not be adverse, he erred in failing to recognize the positive attributes which this annexation would yield.