Monday, March 31, 2014

What Happened with the Funding of the Special Service District

We are all part of multiple tax districts created for a specific service.  Districts can provide services such as flood control, mosquito abatement, water, cemetery. You can find what districts you live in listed on your tax statement.  You are charged a tax to fund the service each district provides.

In an effort toward self governance, Box Elder County created a district in South Willard called the South Willard Bay Special Service District.  The services the county allowed to be included in the district were sewerage, drainage, garbage, health care, transportation, recreation, fire protection, emergency medical and ambulance, street lighting, animal shelter and control.  The County tried to include all services a city would typically take care of in an effort to help South Willard move toward self governance.

An SSD would be able to charge impact fees as development came to the community. (after an extensive and costly study to determine what the impacts would be)  An SSd would give some local control to South Willard. Costs of municipal services could possibly be lessened with an SSD able to negotiate similar to a city. 

Creating a district is the simple part, funding is less simple.  The county paid for an attorney to meet withe the SSD board members to help with the legalities of approaching the district for funding.  There was an informational meeting held to answer questions and explain the benefits of a Service District.  The county  put together the slide presentation, paid the county planner, the clerk and planning commission members for their time invested, paid for mailings and paid for the public meeting notices. The SSD board members went door to door to share information on the benefits of the SSD.   Unfortunately the vote still failed. 

The SSD board met with the county and the SSD attorney again following the vote.  The attorney explained that there can only be 2 attempts made to fund a district.  Because the first had failed even after a door-to-door campaign, public meeting and during a presidential election year when turnout is greatest, the county felt it was not prudent to fund another vote until,  a larger election, and until the tide of public sentiment had changed. 

Although unfunded, the SSD continued to meet periodically with the county for South Willard related issues. They have also been active in zoning meetings affecting South Willard. 

Prior to elections in 2010 there was discussion of attempting funding again, however with the slowing economy and the lack of current growth, both the county and the SSD felt that it was not the right climate to ask for a tax increase.
  
As the economy began to stabilize, putting the SSD funding on the ballot for the 2012 election was discussed. However because of coming growth and the talk of annexation, which both the SSD and the County feel are the stronger long term option for South Willard, the vote wasn't put on the ballot.  

Meetings for annexation began in the spring of 2013.   


3 comments:

  1. Can you elaborate why the SSD and County felt annexation was a stronger long term option?

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  2. The SSD was always meant to be a temporary measure until the South Willard area had a sufficient tax base to pay for services in the area. Most people believe that cities are funded by property tax, but the majority of funding is from commercial development. For example, the largest revenue source for Willard City is from Flying J. South Willard does not have a tax base to support services. In fact, this area is a large draw on county resources because the cost of services far exceeds what is collected from property taxes and from the minimal tax base. It is easy to see why the county has been so willing to facilitate South Willard moving toward self governance.
    Incorporation involves very high start up costs. The cost of a city building, police protection, fire protection, snow removal equipment and storage, parks maintenance, and personnel for these. Before incorporation could be approved there would have to be a similar study to the one for annexation. Because of the initial start up cost and the lack of a tax base it was felt that the study would come back that the cost of incorporation would be too high for residents. It was felt that even with financial help from the county and transference of utility easement fees the tax increase needed would possibly prohibit approval of the incorporation.
    Another cost consideration in viewing incorporation would be future sewer costs. When the Willard/Perry treatment plant was constructed the State decided that all sewer from the South Willard area would eventually go north to be treated at this facility. As I said in my other post, sewer will most likely come when it is mandated by the state because of growth and it will go north. Cost to be a user of the sewage treatment plant rather than an owner are far higher. This cost was also considered in the discussion.
    Annexation would allow South Willard residents to be owners in the treatment plant and would lessen costs significantly for residents. Willard City already has offices, a fire station and police station. They would need to purchase new equipment at significant cost but it isn't from the ground up, the funds from the county, utility easements and property taxes would be enough to increase their fleets and hire new personnel without requiring huge property tax increases for residents.
    Willard and South Willard already combine for many things. Many South Willard residents participate in Willard City's youth baseball program, the 4th of July celebration, their C.E.R.T. training program. Annexation would give South Willard a voice in these and many other local issues.
    This is my opinion of these issues and may not be the view of the county or others on the SSD.

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  3. These are some great points of consideration, thank you for sharing them. I have always believed that regardless of annexation or incorporation, we will have to build new city building, police, fire, etc..., as the current facilities will not handle the future growth of South Willard. And that means higher taxes. But I guess we would need a study to know how much more one (annex) would be over the other (incorporation).

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