HomeMy WebLinkAboutmemo from Jamie to BMooreDepartment of Planning and Development Planning
723 West Markham Street
Little Rock, Arkansas 72201-1334 Development
Phone: (501)371-4790 Fax: (501)399-3435 Building Codes
TO:
FROM:
SUBJECT:
DATE:
MEMORANDUM
BRUCE T. MOORE, CITY MANAGER 8
JAMIE COLLINS, DIRECTOR OF PLANNING AND DEVELOPMENT
COST BENEFIT TO THE CITY FROM
THE CRYSTAL VALLEY TRAILS ANNEXATION
JANUARY 27, 2023
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, Planning and Development, 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 service' 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.
Please let me know if you have any questions or need additional information.
Attachment