At the Junction of growth and vitality

North Carolina cities must be allowed to grow through annexation of their urban boundaries to allow for continued financial and social sustainability. The expansion of our cities allows for new business and job development and therefore greater economic opportunity for our citizens. State law recognizes that annexation is necessary for the long-term growth and vitality of our cities and towns.

Annexation promotes greater taxpayer equity and provides for an inclusive political system that enfranchises more citizens of the urban area as full partners in the conduct of local civic affairs.

Annexation of our urbanizing areas is the most cost-effective way to deal with growth. Expanding existing infrastructure benefits city and county taxpayers by saving millions of dollars by not building duplicative systems.

Annexation is equitable because it helps to offset a burden on city residents.

The city runs largely on revenues from sales tax and property tax.

Most of the sales tax collected within the city gets re-distributed to the unincorporated areas of the county. Taxable sales within the City of Wilmington account for 83 percent of the taxable sales throughout New Hanover County. However, only 21 percent of the sales tax collected in the city is returned to the city.

Most of the remaining money (74 percent) goes to the county, which is able to keep its property taxes artificially low thanks to this subsidy that city residents are paying.

People locate their residences and businesses near cities and towns for a reason. Annexation helps spread the cost for the advantages of living in close proximity to a city or town to people who benefit from them. Our cities and towns provide services and amenities such as transportation, public safety, recreation, economic development, shopping and jobs that benefit not only city residents, but also those living outside municipal borders.

Note that city residents pay 60 percent of the property taxes used to provide county services in unincorporated areas.

Existing annexation laws make it easier for cities and towns to compete for jobs and provide public services to residents and businesses.

Cities and towns are job centers. More that 85 percent of all jobs in North Carolina are in the metropolitan areas. The economic health of the cities drives the economic health of the entire region.

If annexation is stopped, more of North Carolina’s growing population will be on septic tanks, substandard wells and privately-operated and sometimes costly sewage treatment plants that significantly increase environmental and public health risks.

The proposed new Monkey Junction annexation area meets and exceeds the state-mandated requirements for taking such an action.

For example, at least 12.5 percent of the boundary of a proposed annexation area must adjacent to the existing city limits. In this case 24.5 percent of the proposed annexed area meets the requirement.

An annexation area must have at least 2.3 residents per acre-the Monkey Junction area has 3.75 residents per acre. 60 percent of the lots must be used for residential, commercial, industrial, institutional or governmental purposes (non-agricultural). 88.6 percent of the Monkey Junction area meets this requirement.

62.4 percent of the total residential and undeveloped acreage consists of lots and tracts three acres or less in size.

Our entire region is growing rapidly because of the growth of the City of Wilmington. People locate their residences and businesses here because of the proximity of the city.

The issue before the City of Wilmington is a matter of equity and fairness.

In my view, it is altogether equitable and fair that the people and businesses locating in our growing urban area should share the cost of operating our city with those of us inside the city limits.

From a political point of view, keep in mind the fact that the City Council is not elected by the people living in the unincorporated areas. You are elected by residents of the City of Wilmington.

My friend, State Sen. Julia Boseman, might also want to perform an analysis of who elects her.

Being a city resident has, among others, the following benefits, according to Merritt:

• Improved solid waste service
• Improved fire protection
• Improved police protection
• Improved planning and zoning (more protections for
  the homeowner)
• Improved water quality and reliability
• Improved sewer service and reliability

Gene Merritt is the president of Wilmington Downtown Inc.