HomeMy WebLinkAboutCost BenefitCost – Benefit to the city from the Crystal Valley Trails Annexation
The property tax which would be generated by the land is based on the tax tables provided on the Pulaski
County Treasurer website. The applicant has indicated that the homes on this land will be ‘starter homes’.
Based on current ‘starter home’ subdivisions in Little Rock a value of $20,000 for the land and $200,000
for the improvements was used. Using the applicant’s timeline for construction of homes, the first homes
would appear in year two after the annexation. The applicant is projecting full development in
approximately twenty years.
The Police and Fire Departments have indicated that there would be no additional cost due to the
annexation. The Little Rock Fire Department indicated that they can serve the area from their existing fire
station (Station #24, 8801 Stagecoach Road) and there would be no additional costs. Police Department
estimates that there would be 175 calls per year at full build out (in 20 years). Noting that there is no way
to be a hundred precent sure. The estimated call volume would be so small as to have minimal impact.
The Police Department intends to serve the area with existing resources.
The Housing and Neighborhood Programs and Public Works Departments provided some cost figures.
Housing and Neighborhood Programs expects calls ‘for serve’ to start in year two and increase every 5
years. They have pro-rated a staff person’s costs to the annexation area. Public Works Department
provided a cost of service for solid waste that will be billed to each household making it a net no cost to
the city. As for the costs related to the streets, the city’s total street fund budget for 2022 is
$13,212,724.00 to maintain 2,492 miles of streets, including 1,568 miles of drainage ditches and 376 miles
of storm sewers. At full build-out in 20 years, this new subdivision will add 3.45 miles of new internal
streets and 0.37 miles of Crystal Valley Road will come under city maintenance. This would represent an
increase to the city street system of 0.15% from the current total. Assuming that the average annual
expenditure for maintenance is equal for each mile of street, the maximum annual cost of maintenance
for the new subdivision would be $20,255 at full build out in 20 years based on current budget data. For
the cost of streets an estimate of $5300 is spent per year per mile of city street. Public Works gave an
estimate of the miles along Crystal Valley Road as well as proposed internal streets per year.
Planning Staff applied the estimates for costs provided by the service line departments and added
projected taxes which the city would receive based on assumed development. The results are shown in
the attached table. The figures indicate this annexation, if developed as proposed should be a net positive
for the city.