Random Thoughts on Annexation

One of my favorite opinion writers is Thomas Sowell, who once every month or two publishes a list of 'random thoughts.' Below are mine related to Kokomo's proposed annexation non-plans:


It’s too bad that Kokomo’s citizens are being thrown into this mess along with those being annexed. Though the administration promises the contrary, if the annexation ordinances pass, city folks (current and annexed) will eventually be paying higher city and county taxes. This will be the result of some council member’s willingness to vote for a plan full of holes. Without the financial impact figures, no real guarantees can be made.


The one percent cap on residential property taxes isn’t permanent. Unscrupulous state politicians will soon be looking to remove their self-imposed limit on raising revenue to fund their pet projects. For those annexed, the loss of freedoms and the eventual and perpetual tax hikes as Kokomo citizens will be permanent.


If Kokomo’s elected officials cannot convince people who live three minutes away to agree to join the city, how do they hope to ever attract people from outside the area? Recommendation: Exhibit better leadership than you have shown thus far. A good start would be to strike down those annexation ordinances based on incomplete plans.


How many of their buddies will they need to hire if this thing passes?


If the administration and council was serious about their Economic Development plans outlined during the campaign season, they would focus on bringing business to the area, not acquiring new citizens through annexation. If the city succeeds in bringing new employers, the businesses will take care of bringing the jobs and people to the city. Government’s role is to set the stage for growth, not force it to occur.


How can city officials hope to put Kokomo in a financial situation to partner with new business in order to generate jobs for the future if they will already be committed to providing new infrastructure and services to new residents “acquired” through annexation? Only by raising taxes on all of us.


Imagine the impact to the city budget to provide infrastructure and services to the new residents; ...No, really, you have to imagine it… the incomplete plan put forth by the city administration is missing those numbers.


Getting the financial impact figures to the public should have happened before the 1st reading. There is absolutely no excuse for not having the information at the second reading. Now, we are less than a month away from the third reading of two ordinances that will shape the future of Kokomo and Howard County for decades, and the public still has no numbers. The council should strike down the ordinances. The public should have the time allotted by the three reading process to digest the information and make their voice heard. This is especially true with a plan that has as much down-side potential as this annexation. Rushing the plan through to beat the census is a disservice to the community.



Aside from what some would have you believe, county folks already contribute to the Kokomo budget simply by spending money in the city. The businesses we frequent pay a capped limit of 3% assessed value in property tax (that is, three times the amount that citizens pay.) In return, the administration provides city streets and other infrastructure to get us county folk in the doors of Kokomo establishments. Those taxes are passed to us, just like you, in the price of goods. The sales of these goods and services create jobs and income tax revenue. Thus, the city already has mechanisms in place to offset the ‘negative impact’ of us so called ‘freeloaders.’

And finally, since council members brought it up in the context of annexation discussions, so will I:

Why is the Kokomo City Council talking about new taxes like ‘food and beverage’ or ‘commuter’ taxes at its meetings if the annexation will make things better? Fact: City and county residents alike enjoy a meal from the local restaurants. Fact: Some of your elected officials have expressed a desire to profit on that. Prediction: If these types of levies occur, ‘Mom and Pop’ will go under first. This will make room for a new Dunkin Donuts or perhaps a new chain pharmacy store to be built right across the street from your local chain pharmacy store. Somehow, that’s supposed to be economic development.


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