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Town Hall Meeting East 34 Annexation January 4, 2010

Town Hall Meeting East 34 Annexation January 4, 2010. Top 10 Frequently Asked Annexation Questions. Annexation Map. 1. Why does the Council want to annex the East 34 area and why is it a Council goal?. Answer.

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Town Hall Meeting East 34 Annexation January 4, 2010

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  1. Town Hall MeetingEast 34 AnnexationJanuary 4, 2010 Top 10 Frequently Asked Annexation Questions

  2. Annexation Map

  3. 1. Why does the Council want to annex the East 34 area and why is it a Council goal?

  4. Answer • East 34 area will bring in an estimated $250,000 in new revenue to help pay for: • Street improvements and maintenance • Park improvements  • Economic development to bring new jobs • Reduce reliance on property taxes from residents • Highway 34 and 79 will be a future growth area

  5. 2. Why does the Council want to annex Rally businesses like Full Throttle Saloon, Glencoe Camp Resort and Monkey Rock / Sturgis Thunder Dome?

  6. Answer • Rally businesses profit greatly from the Sturgis Rally (wouldn’t exist without Rally) • These Rally businesses do not pay any taxes or fees to benefit the residents of Sturgis nor share in any costs of the Sturgis Rally • As a matter of tax fairness, the Council believes these businesses ought to pay taxes to benefit the residents of Sturgis

  7. 3. Will my City taxes go up because of annexation?

  8. Answer • NO • City is currently providing Police, Fire, Sewer, Sanitation and Back Up Water Service to the East 34 area • No significant increase in costs • Property and sales taxes and vendor fees from the annexation area pay for new services • Annexation pays for itself and generates new revenues

  9. 4. Do residents pay for water or sewer lines in the area?

  10. Answer • NO • Businesses in the area are required to pay for their own water or sewer lines through special assessments if they want the services • These services are supported by water and sewer user fees collected from the businesses in the annexation area

  11. 5. What about the 79 Bypass and future growth?

  12. Answer • Meade County is engineering the highway bypass around Sturgis • If the road is built this could divert business and sales tax from Sturgis • Need to annex now to retain future sales tax revenue and plan for orderly growth in the area • Sturgis can’t grow much to south, north and west.  Flat buildable prairie land east of Sturgis is the logical location for future growth

  13. 6. What are the major costs of annexation?

  14. Answer • Primary new cost to the City is snow removal on Highway 34 estimated at $10,320 annually • City currently provides maintenance to Glencoe Road (only access to the wastewater treatment plant) • Fort Meade will continue to take care of their streets, grounds and water system

  15. 7. What other community organizations support the East 34 Annexation?

  16. Answer • Future Sturgis Retail Committee • Future Sturgis Town Hall meeting – March 26, 2009 – 450+ participants – vote by hand showed overwhelming support • Future Sturgis Town Hall meeting – September 24, 2009 - 74% voted in favor of annexation • Sturgis Economic Development Corporation • Sturgis Chamber of Commerce

  17. 8. What will the City do with the new tax revenues?

  18. Answer • Expand street pavement and maintenance repair program • New snow removal equipment • Expand business and job recruitment efforts • More retail attraction • Park improvements • Bottom line: improve the quality of life for residents

  19. 9. What services does the City currently provide to the East 34 area?

  20. Answer • Police and Fire Service to Sturgis Brown High School and Fort Meade • Sewer Service to Sturgis Brown High School and Fort Meade • Back Up Water Service to Fort Meade • Sanitation Service to Fort Meade • Street Maintenance to Glencoe Road

  21. 10. What is the City’s track record on property taxes over the last 3 years?

  22. Answer • Council has reduced the City portion of the property tax rate over the last 3 years

  23. Summary Benefits of Annexation • East 34 area will bring in an estimated $250,000 in new revenue to help pay for: • Street improvements and maintenance • Park improvements  • Economic development to bring new jobs • Reduce reliance on property taxes from residents • Highway 34 and 79 will be a future growth area

  24. Your turn • Questions from the public?

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