The City of Columbia may grow its borders if a study approved by the Board of Aldermen Monday shows the expansion is feasible.
In a special meeting Monday, the Board, Mayor Justin McKenzie and engineers Jeff Dungan and Sean Burns met with Mike Slaughter of Slaughter and Associates for nearly two hours at City Hall.
Slaughter, of Oxford, has more than 25 years of experience in urban planning and annexation. The Board has expressed interest in annexing bordering the city, although it has yet to identify specific areas. Slaughter discussed a variety of statistics and options during the meeting, which ended with a unanimous vote to move forward with a feasibility study.
Slaughter said that annexation is often opposed because of misinformation. Citizens in an impacted area may see a tax increase but not realize that the increase could lead to savings in other areas.
“Fire ratings are an area where taxes can be offset in economic impact,” he said. “The taxes may increase slightly, but improved fire ratings can lead to decreased insurance costs. Annexation is also 100 percent different than the school district. The school districts would not change because the city has annexed the area.”
Understanding the sales tax breakdown is also a key to understanding annexation, according to Slaughter.
“You could have a Love’s Truck Stop located at an intersection just outside the city generating a lot of sales, but if it is not in the city, every bit of the sales tax collected goes to Jackson,” he said. “None of it collected comes back to the county. If it is located in the city, 18.5 percent of that 7 percent comes back to be invested in patching potholes, police protection, fire protection and more. It goes straight to the general fund. If you do annex some businesses, it will have an impact. Right now, that money is going away from this community; that will change with annexation.”
Alderman-at-Large Edward Hough asked for clarification about the tax incentives.
“If we had a business (located just outside the city limits) they are going to collect 7 percent on retail sales,” Slaughter said. “Eighteen and a half percent of that 7 percent will come back to the city. Of all the businesses that collect sales tax in the city, you get 18.5 percent right now. Without it being in the city, it doesn’t come back.”
The study will also include an analysis of water and sewer systems and a land use survey. Potential development in areas, such as around the Columbia-Marion County Airport, could also factor into areas being proposed for annexation. Slaughter said that if an annexation proposal was accepted and not contested, the process could take one year or two. If contested, it could add an additional year.
“In Mississippi, annexation requires you to go through chancery court,” he said. “I’ve worked with many cities on annexation and I’m currently working with Petal. Annexation is not something we do as a side note; it’s something we do every day.”
Slaughter began the presentation by sharing research of population in Marion County.
“In 1970, Marion County was about 22,800 people and it is up to 27,000 now, an 18 percent increase,” he said. “Columbia in 1970 was more than 7,500 people and has lost about 1,000 in population, down 13 percent. The county has grown, but the city has not. Between 2000 and 2010, the city had just a slight decrease, but the county has continued to grow, increasing 5.8 percent.”
The Board listened as Slaughter discussed city sales tax numbers and business numbers from the past decade.
“There was a downturn around 2008-09,” he said. “You can see that the number of businesses decreased from 426 in 2009 to 362 in 2010. The city got back up over 400 in 2012-13 but in 2016, it is down somewhat from what it was. You would prefer to see that grow because one of your main sources of revenue for your general fund is sales tax diversion. You like to keep that healthy for sure.”
Slaughter then delved deeper into the annexation process.
“You want to conduct a feasibility study that takes into account analysis of city services such as the police and fire department,” he said. “Once that study is completed, you would have to adopt an annexation ordinance. The first legal step would be filing a petition in chancery court. You need to study the social and economic impact.”
Slaughter reassured Board members, who asked about various aspects of annexation.
“Remember, you’re not taking anything away from the county,” he said. “The school districts and school taxes are not going to change one bit. The county will continue to operate the way it has been operating.”
Other concerns with annexation include redistricting the city’s four wards.
“We would start out by putting the annexed areas in the wards adjacent to them,” Slaughter said.
City Attorney Lawrence Hahn addressed the issue as he spoke with Slaughter and the Board.
“Demographically, it will stay pretty much the way that it is,” he said. “However, redistricting is separate from the annexation.”
After the more than two hours of discussions were complete, Ward 4 Alderman Mike Smith made the motion to move forward with a feasibility study. The motions was seconded by Ward 1 Alderman Wendell Hammond. The Board then voted unanimously to approve the motion and begin the process.
The Columbia Board of Aldermen also met Tuesday night in regular session; results of the meeting were not available as of deadline. The next regularly schedule meeting of the Board is set for 4 p.m. on Aug. 1 at City Hall.
