Thread: Annexation analysis should give you a headache?

In two Kokomo Perspective articles this week, the venerable crier of Kokomo lamented non-stop about how wonderful annexation would be for all concerned.

Several of our readers, who have asked questions about how much all this will cost to no avail (because the City Council, the Mayor, and the Perspective don't really seem to know), pleaded with us to look into things a little deeper.

And so we did... and that labor of love is guaranteed to give you a really bad headache, indeed .

Since no one in government has seen fit... in years... to actually publish the City budget for all to peruse and debate at their leisure, we had to go with what information is actually available about the "top secret" City Budget.

Here's what we've found: City of Kokomo expenditures have ranged from $52.1 million to $54.9 million for the last five years. That equates to an average spending pattern like this:

$1,155 per person
$2,628 per household
$3.699 million per square mile

We can't tell you where all that money goes, for sure. We'd probably have to file a Freedom of Information Act request and threaten to sue Mr. Sublette before we'd get that data.

In any event, we do have the information about how much the City intends to spend in extra dollars if their annexation plans are successful.

Here's how that breaks down for each plan:

- West Plan

$438 per person
$1,153 per household
$478,919 per square mile

- East Plan

$491 per person
$1,109 per household
$400,992 per square mile

OK, we see a lot of disparity between how the City spends money in its current situation, and how much new taxpayers might directly benefit from residing within Kokomo.

Part of that difference, of course, is administrative costs, which rightfully are spread among every single person, household, and square mile.

Ah-Ha!... I said when pondering this further. Since the Mayor's East and West Side plans are very close in their respective additional expenditure estimates... maybe we can figure out how much it really does cost to pay for all of what would be called 'overhead' in any other endeavor but government.

So, here we go. Kokomo had 46,113 residents, 20,273 households and 14.4 square miles according to the official 2000 U.S. Census.

Back to Excel for a little more math. Mayor Goodnight estimates (averaged between the East and West Plans) the following raw operating costs:

$465 per person, $1,131 per household, and $439,956 per square mile

so... the rest of Kokomo's raw operating costs should be ~around~...

calculated by person - $21.442 million
calculated by household - $22.927 million
calculated by square mile - $6.335 million

Let's throw out the square mile figure due to very different population densities, and just concentrate on by person and/or household.

These numbers are pretty close and tell me we're onto something here. The question is... does Kokomo really operate a service-oriented City government with overhead administrative costs totaling over 50 percent?

Thirty-two million dollars to pay the Mayor, the City Council, administrators of the various departments, heat and light the city offices. Geeze, they must have a great 'thing' going there... at your expense.


If the City Council and Mayor only need $22 million to provide police, fire, sanitation, streets... all the basics.... what in the World do they spend the other $32 million on?

$32,000,000 is $693 dollars spent for every man, woman and child who lives within the City limits.

Is the City Building paid for? How much does it cost to run City administration?

Somebody has either 'estimated' the annexation costs way too low, or spent much more on non-productive administrative overhead than seems imaginable.

Either way, there are too many questions about these numbers to consider annexing anything and further compounding whatever's wrong.

If the annexation plans need 'fixed', then the City Council should to do it. If the budget is way-way inflated, the City Council needs to take care of that, instead.

In either case, they shouldn't take another bite of this plan before they've finished what's on their plate right now.

NIK

OK, So people want to look at the data I used to come up with the figures in this article.

Here you go: a web presentation of the Excel Spreadsheet..


Use the tabs on the bottom of the page to navigate between the summary, East and West Plans.

You might find something of interest...

NIK

Excellent analysis.

One way (wasteful budget) or another (incomplete annexation figures) or more likely, both, we are seeing poor leadership.

Originally Posted by LookOutKokomo

Excellent analysis.

One way (wasteful budget) or another (incomplete annexation figures) or more likely, both, we are seeing poor leadership.

Its about time the fringe developments start paying their fair share for demand on public infrastructure.

This is what happens when hap-hazard development is allowed to occur in unincorporated areas of the county.

Originally Posted by ISawEnough

Its about time the fringe developments start paying their fair share for demand on public infrastructure.

This is what happens when hap-hazard development is allowed to occur in unincorporated areas of the county.

But what public infrastructure are we utilizing that we arent paying for??

Originally Posted by Patiwaq

But what public infrastructure are we utilizing that we arent paying for??

Primarily demand on parks and streets and the public services and services of businesses, such as grocery stores and restaurants, that the City already serves.

There is an overhead associated with the infrastucture upon which a City is built. People who live outside the corporation limits enjoy the benefits of the City, such as comparable assessed property valuation and reciept of convenience at the expense of those who live within the limits and support the infrastructure that supports business.

Whether people like government or not, there is typically someone available to take the brunt of a complaint or an issue. Someone is usally responsible. Conversely, have you ever tried to get in touch with a real person at the water company, the phone company, or the cable tv company without pressing a multitude of numbers or getting an automated message?

Without Kokomo, there would be no Chrysler or Delphi providing jobs that built the many homes in area.

Isaw,

Sorry, I don't agree. The only valid issue you might have are parks, but I'd be interested to know the ratio of county residents... a lot of which already live in the country.. that take advantage of City parks.

As to businesses and so forth, let me go further. There are a lot of people who live in the County, or even adjacent Counties... who visit Kokomo every day to spend their money. That money goes to local businesses, which pay higher percentages of taxes than homeowners do. Sure, they're using city roads to get wherever, but they're also paying for them through the businesses they support.

Quite a lot of Kokomo residents work in Hamilton County. Suppose Noblesville, Fishers or Carmel took the same stance as you. Suppose these workers were viewed as a 'drain' on city resources because the folks aren't property tax payers?

Noblesville, Fishers, Carmel, Plainfield, Avon, eastern Indy 'burbs, are all doing fine because their business community flourishes.

Kokomo should quit trying to grab more money from people who have no interest in participating in local City Government, and concentrate more on supporting local business which pays the lions share (in dollars) to the property tax equation.

Where am I wrong here?

NIK