cg2020 a study on the incorporation of center grove

1. 1 Dr. Paul N. Friga Alan Burleson Chris Cannon Tim Krzywicki Shalini Makkar Bhavin Shah Rachita Sundar April 24, 2007

2. 2 The story at a glance

3. 3 The story at a glance Introduction A team of Kelley faculty and students investigated incorporation options for Center Grove The pro-bono study spanned one year and included secondary and primary research Center Grove is an upscale community with many strengths but it faces several challenges due to dramatic growth and should consider annexation or incorporation Conclusion Incorporation could improve the safety and condition of roads Incorporation could provide upgrades to important services such as police, waste & water Incorporation could allow more local control over zoning and lead to more green-space and economic development Implementation An incorporation would take several years but would have positive long term impact Incorporation could be financially feasible with funding through loans and bonds and would require an increase in certain taxes There are risks and challenges to completing the incorporation

4. 4 The project has spanned just over a year of work

5. 5 WRT is known for higher income and property values

6. 6 The WRT area includes many high income families

7. 7 The Center Grove area is an attractive demographic

8. 8 WRT homes are a cut above

9. 9 The WRT area is growing fast

10. 10 We targeted three primary issues for investigation Our investigation surfaced three important considerations when an unincorporated area faces such strong population growth What will be the effect of growth on the roads? How will services be upgraded to accommodate? Will development control green-space and economic development considerations? Ultimately, the goal is to preserve the quality of life in the area and grow the property values.

11. 11 We considered several incorporation options

12. 12 Shall we change the sequence of slides here: Annexation pros and cons Process introduction Process timeline Challenges and costs Specific considerations: Greenwood vs BargersvilleShall we change the sequence of slides here: Annexation pros and cons Process introduction Process timeline Challenges and costs Specific considerations: Greenwood vs Bargersville

13. 13 The story at a glance Introduction A team of Kelley faculty and students investigated incorporation options for Center Grove The pro-bono study spanned one year and included secondary and primary research Center Grove is an upscale community with many strengths but it faces several challenges due to dramatic growth and should consider annexation or incorporation Conclusion Incorporation could improve the safety and condition of roads Incorporation could provide upgrades to important services such as police, waste & water Incorporation could allow more local control over zoning and lead to more green-space and economic development Implementation An incorporation would take several years but would have positive long term impact Incorporation could be financially feasible with funding through loans and bonds and would require an increase in certain taxes There are risks and challenges to completing the incorporation

14. 14 There are a significant number of unincorporated roads Total miles of unincorporated JC – 617 miles WRT has a total of 188 miles

15. 15 Current condition of roads suggests room for improvement

16. 16 Safety is also a significant area of concern Two collisions in less than one week Many citizens have experienced near collisions at various crossing INDOT Hazard Index Rating ranked Stones Roads Crossing 1,009 of more than 6,000

17. 17 The single biggest issue is the lack of funding

18. 18 Incorporation would increase funding for roads

19. 19 Incorporation of WRT will provide funding options

20. 20 The current police coverage in WRT is low

21. 21 The recommended police force is significantly higher

22. 22 Growth of water & waste services require more capacity

23. 23 Developing CG water & waste services has advantages

24. 24 Economic development & “greenspace” will be critical

25. 25 Greenwood boasts many parks and trails

26. 26 The latest comprehensive plan expressed WRT concern Johnson County Comprehensive Plan (1997) WRT predicted to become the most populous township in Johnson County Residents identified the following recreational concerns Recreational land is a critical need in the township Pedestrian circulation issues need to be addressed and planned for future developments Require installation of sidewalks as opposed to street usage Maintain the current residential character of the township

27. 27 Ideas were discussed 10 years ago but not implemented Creation of a park system specifically for White River Township A regional park within the White River floodplain Four non-site specific community parks Three Linear Parks to directly link proposed parks, school complexes, and other destinations

28. 28 CG should seek to become a more complete community

29. 29 The story at a glance Introduction A team of Kelley faculty and students investigated incorporation options for Center Grove The pro-bono study spanned one year and included secondary and primary research Center Grove is an upscale community with many strengths but it faces several challenges due to dramatic growth and should consider annexation or incorporation Conclusion Incorporation could improve the safety and condition of roads Incorporation could provide upgrades to important services such as police, waste & water Incorporation could allow more local control over zoning and lead to more green-space and economic development Implementation An incorporation would take several years but would have positive long term impact Incorporation could be financially feasible with funding through loans and bonds and would require an increase in certain taxes There are risks and challenges to completing the incorporation

30. 30 The incorporation process involves several steps

31. 31 Possible boundaries for the incorporated area

32. 32

33. 33

34. 34

35. 35 No city tax is collected or used in the CG area (only township)

36. 36

37. 37

38. 38 We developed a model to test the financial feasibility

39. 39

40. 40 The cash flows would be negative in the initial years

41. 41

42. 42 The Increase of Property Tax appears affordable Sensitivity Analysis of Annual Total Property Tax of an Average Household Average House Assessed Value: 100,000 USD Total Property Tax Rate increase from 1.98% to 2.48% Total Property Value increase 0% ~ 50%

43. 43 There will be significant hurdles to overcome CHALLENGES Not enough support from local residents Insufficient start-up funding to cover the incorporation cost Difficult to persuade county officials to give up control Possible remonstration from local residents Objections from nearby towns/cities SOLUTIONS Educate residents and gain their support Try to recruit volunteers and attract pro-bono services Communicate the benefits of incorporation to county officials Ensure internal buy-in and prepare for potential litigation Open dialogues to ensure cooperation

44. 44 Is WRT/CG willing to incur short term costs for long term gains?

45. 45 The story at a glance Introduction A team of Kelley faculty and students investigated incorporation strategies for Center Grove The study spanned two years and included secondary and primary research Center Grove is an upscale community with many strengths but it faces several challenges due to growth and should consider annexation or incorporation Conclusion Incorporation would improve the safety and condition of roads Incorporation would provide upgrades to important services such as police, waste and water Incorporation would allow more local control over zoning and lead to more green-space and economic development Implementation The process would take several years Incorporation costs could be funded through loans and bonds There are risks and challenges to completing the incorporation

46. 46 Appendix General Roads Services Character Financial

47. 47

48. 48 WRT is large for an unincorporated area 30,200 acres Population ~40,000 people ~12,800 homes

49. 49 Estimated population in Johnson County in 2010 http://www.jcdc.org/http://www.jcdc.org/

50. 50 Total Population by Townships

51. 51 Population Growth

52. 52 Housing Data

53. 53 Detailed Map of Johnson Co.

54. 54 Annexation would be largest in IN history WRT would be ~30,200 acres WRT population ~30,000 people ~12,800 homes Provide statistics of WRT, size of area, population, or even map Move this slide to AnnexationProvide statistics of WRT, size of area, population, or even map Move this slide to Annexation

55. 55 State & Local Tax Revenues Affected by Annex.

56. 56 History and current state of annexations in Indiana

57. 57 Annexations in Indiana by Class of City and Town

58. 58 Municipalities with greatest number of annexations

59. 59 The zoning scope is important IN-37 / I-69 business corridor. The county has plan to develop this area. The county’s development plan will be in the best interest of the county, but might not be in the best interest of WRT. So WRT should try to incorporate this area, so it can have its own zoning and development plan.IN-37 / I-69 business corridor. The county has plan to develop this area. The county’s development plan will be in the best interest of the county, but might not be in the best interest of WRT. So WRT should try to incorporate this area, so it can have its own zoning and development plan.

60. 60 What is the petition process?

61. 61 Controlled growth lowers overall costs

62. 62 WRT could realize cost savings

63. 63 Controlled growth in major sprawl region

64. 64 If Center Grove incorporates it will affect Johnson County’s plans

65. 65

66. 66 Incorporation provides options for funding flexibility

67. 67 Costs to Equip Roads with Safety

68. 68 Additional tax breakdown Wheel Tax: $30,000 Based on estimated number of vehicles in WRT Average tire costs $75 Tires replaced every 5 years Tax is 2% of the cost LOHUT: $50,000 Based on estimated number of vehicles in WRT Average cost of vehicle registration is $200 Tax is 2% of the cost Local Thoroughfare Tax: $200,000 Tax is 3% of property tax collected

69. 69 Current and Possible Tax Revenue Sources

70. 70 General Purpose Average Millage Rates Michigan state data http://www.aec.msu.edu/government/fs&l_partnership.htmMichigan state data http://www.aec.msu.edu/government/fs&l_partnership.htm

71. 71 Current Federal Highway User Tax Rates (2000) Federal Highway Cost Allocation Study http://www.fhwa.dot.gov/policy/hcas/summary/sum3.html#2000Federal Highway Cost Allocation Study http://www.fhwa.dot.gov/policy/hcas/summary/sum3.html#2000

72. 72 Historical Summary of Revenues – MVH Fund Summary of Highway Revenues, Distributions & Expenses for Indiana Counties, Cities and Towns - RP-4-2005Summary of Highway Revenues, Distributions & Expenses for Indiana Counties, Cities and Towns - RP-4-2005

73. 73 Historical Summary of Revenues – LRS Fund Summary of Highway Revenues, Distributions & Expenses for Indiana Counties, Cities and Towns - RP-4-2005Summary of Highway Revenues, Distributions & Expenses for Indiana Counties, Cities and Towns - RP-4-2005

74. 74 Historical Summary of Revenues – Federal Aid Summary of Highway Revenues, Distributions & Expenses for Indiana Counties, Cities and Towns - RP-4-2005Summary of Highway Revenues, Distributions & Expenses for Indiana Counties, Cities and Towns - RP-4-2005

75. 75 Equity Ratio of Local Govt is low compared to State and Federal Revenue/cost ratio (equity ratio): the ratio of the shares of revenues contributed by each vehicle class to the shares of highway costs that vehicle class occasions. Federal: 0.9 State: 1.0 Local: 0.1 Analyses of economic costs occasioned by each vehicle class, which include environmental, safety, and delay costs imposed on others as well as pavement, bridge, and other infrastructure costs, are important in considering the economic efficiency of highway user fees. 1997 Federal Highway Cost Allocation Study http://www.fhwa.dot.gov/policy/hcas/summary/sum3.html#2000Analyses of economic costs occasioned by each vehicle class, which include environmental, safety, and delay costs imposed on others as well as pavement, bridge, and other infrastructure costs, are important in considering the economic efficiency of highway user fees. 1997 Federal Highway Cost Allocation Study http://www.fhwa.dot.gov/policy/hcas/summary/sum3.html#2000

76. 76

77. 77 Police Force Analysis

78. 78 Looking forward on police needs

79. 79 Different scenarios under different ratios

80. 80 Crime is on the rise in WRT

81. 81 Impending growth will stress fire resources Factors constraining WRT fire districts’ ability to provide adequate services in the future (Appendix 48) Increases in New home construction Commercial development Population density Traffic FireFire

82. 82 Some coverage issues for the fire service

83. 83 Building one new fire station has a price tag of $4.3 million Population growth in White River Township is among the highest in Indiana While a new station is a substantial investment, WRT will require more resources to maintain sufficient service levels

84. 84 Fire Department Issues and Coverage

85. 85

86. 86 Current Zoning

87. 87 Control to protect land andeffective land usage

88. 88 Trails and small parks are important to households

89. 89 In Greenwood, parks are a bit hit and used often

90. 90

91. 91 Current WRT Greenspace Use Centrally located Independence Park is only park in WRT 13.5 acre Greenspace Park open daily from dawn to dusk Opened in September of 2000 Indiana’s first all-accessible playground area No trails currently developed

92. 92 Benefits of Greenspace

93. 93 Over 75% of respondents would be willing to pay some increase in property taxes

94. 94 Risks and Mitigation

95. 95

96. 96

97. 97 It is possible to increase the tax by 17M from WR Property Tax Sensitivity Analysis of WR Total Property Tax Net Increase Current Property Tax collect 207,551 USD only Total Property Tax Rate increase from 1.98% to 2.48% Total Property Value increase 0% ~ 50%

98. 98