Thursday night, Caledonia held a swearing-in ceremony for a new mayor and board of aldermen.
Of particular note, of the five aldermen, three are newcomers whose positions are unknown on a couple of topics many feel are essential to the town’s future.
A proposal to annex areas on the perimeter of the town failed by a 3-2 vote of the previous board, but the three new members may flip that count, if they are so inclined.
The plan would have added about 300 residents to the town’s population. While the Caledonia area has seen impressive growth in recent years, the town’s population has remained flat. People are moving into the area, but not within the town limits.
One of the reasons offered for the decision not to pursue annexation touches on a topic that aldermen will find particularly sensitive — until this year taxes are so low that it would cost more for the town to provide services to new residents than the revenue produced by annexation.
That’s going to change soon.
The town will have the money to address many of these issues in February when tax revenue dispersement are made. The 10-year fee-in-lieu agreement with Caledonia Energy Partners ended last year, which means the city will get three times the amount of tax revenue from the company than in the previous year. As a result, Caledonia’s income from all taxes the town receives will increase by almost 230 percent. That’s a $100,000 bump in income as the town’s mill value goes from $9,000 to $24,000.
The new income will allow the town to address many of its most pressing needs. It would also go a long way in helping absorb the initial cost of annexation and alleviate some of the pressure we are already witnessing.
On any given night during baseball/softball season, as many as 400 kids descend on the Ola J. Pickett Park. Remember, the town’s population is just 1,100, which means many of the kids who use the park are not town residents.
More revenue would provide the city with the funds to maintain and expand the park, finish work on the new soccer complex and shore up infrastructure issues that must be addressed with the type of growth the community is seeing.
Since 2011, the town’s millage rate has remained an almost laughably low 6.75. To put that in perspective, a person who owns a $165,000 home in Caledonia currently pays $110 in town taxes. That’s about 1/5th of what they would pay for the same home in Columbus.
Even with the increase in millage value, now might be a good time to look at the tax base. As the town grows, so do expenses. The tax rate should reflect that cost.
For a few dollars more, the town could grow its population through annexation, continue to improve its park system, address those infrastructure issues and plan for future needs.
The Dispatch Editorial Board is made up of publisher Peter Imes, columnist Slim Smith, managing editor Zack Plair and senior newsroom staff.
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