Published: November 20, 2009 05:02 pm      

Incorporation gets board’s OK: Clark County Commissioners also likely to give approval

After three months of silence, the push to incorporate Covered Bridge subdivision may have gained some momentum this week after receiving a favorable recommendation from the Clark County Planning, Zoning and Building Commission.

The push by residents of the subdivision to incorporate into the Town of Covered Bridge, in order to avoid annexation by the town of Sellersburg, will be heard by the Clark County Commissioners at 7:30 p.m. on Dec. 9.

While the 5-0 recommendation from the planning and zoning commission carries no legal weight, it is a positive step for those leading the effort and could impact the commissioners’ decision.

“Based upon the information that’s available to you ... [the commission] would make either approval or disapproval to the county commissioners, who ultimately make the decision [on whether or not to allow the incorporation],” said Andrew Wright, attorney representing the Covered Bridge residents seeking incorporation.

Planning and zoning commission member and County Commissioner Ed Meyer said, at least for him, Wednesday’s planning and zoning recommendation would carry considerable weight when the matter comes before the commissioners.

“Since this goes to the commissioners … it’s going to be my position that I’ll concur with whatever this board goes with today,” Meyer said Wednesday. “So whatever we go with here — I’ll abstain tonight — but I’ll go along with whatever this board says. That puts some meaning into this one … unless something drastic happens.”

Meyer’s statement could be a sign of what will happen at the Dec. 9 meeting of the commissioners.

Commissioner Mike Moore has previously stated he will support the residents of Covered Bridge in their incorporation effort, essentially giving Covered Bridge two affirmative votes from the three-person board.

But before a vote is taken by the commissioners several legal requirements must be met — which was the purpose of the investigatory hearing before the planning commission Wednesday.



SERVICES

One of the major requirements, outlined by state statute, are the services the new town would be required to provide.

But Covered Bridge proposed on Wednesday that it will provide nearly no new services should it be incorporated as a town.

Instead the residents plan to enter into several interlocal agreements in order to meet the state required services.

The interlocal agreements proposed would provide police protection, road maintenance, soil and water conservation and planning and zoning services from Clark County.

Fire protection, as well as sewer and water services, will be sought to be continued by the town of Sellersburg.

The only new service Covered Bridge has offered to provide is its own park and recreation services.

Beyond services, the Town of Covered Bridge must also meet several other requirements.



OTHER REQUIREMENTS

The proposed town is used, or will in the reasonably foreseeable future be used, generally for commercial, industrial, residential, or similar purposes, according to state statute.

According to Wright, the town already clearly residential also has commercial interests, Covered Bridge Golf Course, and a large portion of land along Perry Crossing Road could be rezoned for commercial or light industrial development.

An additional requirement states the town must allow for reasonable growth in the future.

Wright said approximately 30 acres north of Perry Crossing Road and west of Covered Bridge Road is undeveloped.

Also, there are approximately 70 acres in the northwestern part of the proposed area that are susceptible to additional residential development adjoining to the proposed town, according to Wright.

Additionally, the proposed town must be reasonably compact and contiguous.

The area consists of 428.62 acres that is contiguous as previously outlined.



COMPARISON

Wright outlined where the Town of Covered Bridge would sit if incorporated as its own town and how much tax revenue the town would be able to generate.

Population for Covered Bridge is about 653 residents, which is a population density of 974 individuals per square mile, according to Wright.

This compares favorably to the Town of Borden which has a population density of 737 persons per square mile and Utica which has a population density of 1,362 persons per square mile.

Another favorable comparison is the tax rate proposed by Covered Bridge in comparison to Borden and Utica.

“That’s the strong point of Covered Bridge,” Wright said.

The proposed town’s net valuation is $77.2 million with a proposed general fund budget of $136,644 annually.

The tax rate to generate the revenue would be 17.7 cents per $100 of assessed value.

Wright again compared Utica and Borden to the proposed town he is representing.

Utica’s assessed valuation is about $33.7 million, has a general fund budget of $149,858 and a tax rate of 17.7 cents per $100 of assessed value.

Borden’s assessed valuation is about $23.4 million, has a general fund budget of $299,314 and a tax rate of 58.24 cents per $100 of assessed value.

The real fight, Wright said, is if Covered Bridge is annexed by the town of Sellersburg its assessed valuation, after annexation, would increase to nearly $327 million.

He said Sellersburg has estimated its tax levy would increase from $1.4 million to $1.6 million and an estimated tax rate of 51.63 cents per $100 of assessed value.

“They can provide that service themselves at a much more modest cost than if they get annexed,” Wright said.

Cost was also a concern for some of the members of the zoning commission, which questioned whether or not the cost to enter into the proposed interlocal agreements had been included in Covered Bridge’s budget.

Also, Meyer asked what kind of investigation had been done to see what revenue would be generated if the state imposed property tax caps of one percent were implemented.

Wright said the costs to enter into the interlocal agreements have not been exactly determined, but would be examined further and are expected to be covered by revenue generated.

“I don’t think we’ve been naïve in this process,” said Larry Gupton, a Covered Bridge resident leading the incorporation effort. “As a town we are going to be much faster on our feet, much more nimble and much better able to deal with decreasing revenues and increasing costs than if we were part of Sellersburg.”

No one opposing the incorporation effort or members of Sellersburg’s town council were on-hand to speak in opposition of the incorporation.

Sellersburg will have its own meeting in an attempt to annex the Covered Bridge subdivision at a special session of the council at 7 p.m. on Wednesday.



SO YOU KNOW



Comparison of local towns:



Town of Covered Bridge

• Net assessed valuation - $77.2 million

• Tax rate (cents per $100 assessed value) - 17.7

• General fund budget - $136,644

• Tax rate if annexed by Sellersburg - 51.63



Town of Borden

• Net assessed valuation- $23.4 million

• Tax rate (cents per $100 assessed value)- 58.24

• General fund budget- $299,314



Town of Utica

• Net assessed valuation- $33.7 million

• Tax rate (cents per $100 assessed value)- 17.7

• General fund budget- $149,858