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The income that can be generated as a result of annexing properties into the city is difficult to predict, City Council member Paul Osborne told Council members at a special meeting last Monday.
Osborne and Council members Dr. Jimmy Ewing and Dave Nunery were appointed to a committee to review annexation requests in April. The committee prepared a report assessing the benefits and costs of annexing three properties into the city. The properties are a mobile home park on Rowling Street, an RV park on Lone Valley Road and Elk Horn Baptist Church on Elk Horn Road.
Sewer installation for the Elk Horn property is estimated to cost about $300,000.
"We think there's income, but we also think it's going to be very, very slow," Osborne said.
He said it would take several years to get residents who live between the city and the church hooked up to the sewer and paying water, sewer and garbage pickup fees. He also said securing federal or state funding for the sewer line could be a possibility.
The expense to annex the Roland Street property is negligible, according to the report, because the subdivision ordinance mandates that developers bring city services to the property. Campbellsville Water & Sewer Co. returns $1,000 in credit for every $500 sewer tap purchased, therefore, the purchase of 30 taps will defray the entire cost of $14,130 to get services to the property.
While initial income is expected to be minimal, it would increase rapidly as the property is re-assessed and the number of mobile homes, employed people and users of city services increase.
Ewing told the Council that the owner of the Lone Valley property entered into an agreement with the city a few years ago to be provided with city services. He said within the agreement is a clause that states the property is to be completely annexed into the city at some point.
"It has been a considerable amount of time and no action has been taken, and now that property owner has requested to be fully annexed," Ewing said.
Campbellsville Fire & Rescue and the Campbellsville Police Department have requested additional personnel be hired if the annexations are approved. Ewing said the committee considered this to be a separate budget issue that is beyond the scope of its authority.
Council member Randy Herron asked if the increased distance to emergency services would cause insurance premiums to rise. Campbellsville Fire & Rescue Chief Kyle Smith said he hasn't yet looked into that possibility.
Council member Mike Hall Jr. asked the Council to consider reviewing the current annexation ordinance that requires those requesting access to sewer services to be annexed into the city. According to Hall, it would be much simpler to allow homeowners to enter into an agreement with the city to receive sewer services for a fee.
"We could create all kinds of problems if we don't amend that, we're going to have spot zoning everywhere," Hall said.
Ewing said many of the Council's questions about the annexations could be answered once the city's comprehensive plan is updated and he suggested delaying decisions about annexations until the update is complete.
Council member Stan McKinney said he agrees and there are many issues regarding the annexations that the Council must consider.
"How big do we want the city to be?" he said.
Also at the Meeting:
• The Council approved the city's budget for fiscal year 2014-2015. The city will operate on a $19,579,530 budget. Campbellsville Mayor Tony Young said the city is expecting an 8-percent increase in health insurance and a 2-percent increase in utility costs. Also included in the budget is a 2-percent wage increase for all full-time city and Campbellsville Sewer & Water Co. employees. The budget includes funding for updates to the city's comprehensive plan.
Municipal aid funding is expected to be $200,000, however, Young recommended tabling approval of the municipal aid contract because the city hasn't yet received it. A special meeting to approve the municipal aid contract is today at 6 p.m. at the Campbellsville Civic Center. The meeting is open to the public.
• The city entered into an interlocal agreement with the Trail Town task force.
This will allow the organization to make their own reports and handle their own money.
• The Council had first reading of an ordinance to de-annex property between the Forest Hills subdivision and Harding Cemetery Road owned by Kay Shipp. City Attorney John Miller said Shipp believed the property was inadvertently annexed in 1982. When Shipp and her husband purchased the property, they had an understanding with the seller that it would be de-annexed. However, after some investigation Miller said he believes the property was intentionally annexed.
Osborne asked why Shipp wanted the property taken out of the city. Miller said she believes the property is agricultural in nature and has no plans to develop it. She said she doesn't believe it's consistent with urban-type property.
After some discussion, several members of the Council said there was no legitimate reason to de-annex the property. No action was taken.
• Young read the financial report for the month of April. With 83.3 percent of the 2013-2014 fiscal year complete, 83 percent of the city's annual budget has been spent.
• The Council approved a grant application for Campbellsville/Taylor County EMS to be submitted to the Kentucky Office of Homeland Security. The $10,000 grant will be used to purchase oxygen-powered portable ventilators that are used when transferring patients.