1	Madison Community Update presented by
2	Base Realignment & Closure (BRAC) Bringing additional major commands & thousands of new jobs to our area in the very near future
3	BRAC Move Dates & Numbers*
4	Making BRAC Successful Sustainable growth Prevent new development from overloading schools & roads Place the community’s needs first Economic Development Bring a greater variety of businesses to Madison & increase sales tax revenues Education Keep City schools among best in the state
5	BRAC Impacts of Development The estimated cost of initial capital needed to prepare for BRAC is broken down into 6 general categories: Road construction & improvements Public Safety buildings & vehicles Public Works building & equipment Park acreage (3 per 1000 residents) Additional public school classrooms Water & wastewater infrastructure expansion/enhancements
6	BRAC Impacts of Development (per new household) Roads: $ 2,246 Public Safety: $ 653 Public Works: $ 245 Parks & Recreation: $ 510 Schools: $ 7,150 Water & Wastewater $ 3,000 Total new household impact: $ 13,804
7	Cost Recovery Total Capital Cost Impact of BRAC (2,500 households) = $34.51 million Cost Recovery Water & Sewer Impact Fees $6.25 million Sales tax on building materials $5.25 million Net Non-recovered Cost = $23.01 million ($9,204 per household)
8	Preparing for BRAC Working closely with leaders at local, state & national level to prioritize & coordinate BRAC planning activities Restructuring Capital Improvement Project (CIP) list to focus on essential infrastructure needed to accommodate growth acceleration Continuing to develop & enforce “smart growth” policies & programs Incorporating BRAC-related growth projections into economic development initiatives
9	Intergovernmental Cooperation Combining or consolidating services where it makes sense County-wide library system, landfill, electric service, EMA, and 911 (need seats on Library, EMA, and 911 Boards - being worked) County provides garbage pickup for Madison One additional area where could have combined services is sewage treatment Should also standardize public safety communications
10	Millage Rates in Madison
11	What Does “Millage Rate” Mean? 1.0 mill of property tax costs $1.00 for each $1000 of assessed value. The assessed value of a residence is 10 percent of the appraised value, i. e. assessed value = 0.1 x appraised value. Note: There is a reduction in appraised value for the homestead exemption. Commercial property is assessed at 20 percent and utilities at 30 percent.
12	Sample Property Tax Breakdown On a $300,000 Madison home, the annual property tax in Madison County is about $1,677. Of that $1,677 . . . $185 goes to the State $788 goes to the County $704 goes to the City; of that, $324 goes to Madison City Schools $204 is a General Tax $162 goes to the Water & Wastewater Board $14 goes to the Library
13	Sustainable Growth The growth that we are currently experiencing, in addition to the growth to come as a result of BRAC, can be beneficial, but we must be careful to ensure that it is controlled, sustainable growth that contributes to the overall economic development of the community Make growth pay for itself as much as possible $13,804 capital impact from every new house (schools, water, sewer, fire trucks, etc.) Assess appropriate fees on growth (building permit fees hiked from $250/house to 0.8% now, increasing to 1.0% in 2007)
14	Making Growth Pay for Itself Water/sewer impact fees hiked 58% for residential and eliminated for retail commercial. Costs City approx $2000/house/year to provide services; property tax covers about 17% of that 45% of General Fund revenue is sales tax, so we have to boost sales tax base
15	Economic Development Shop Madison First initiative Economic Development incentives Online information & forms for opening new business Aggressive campaign to market Madison to retail industry & attract new business Cooperation with Water & Wastewater Board & other utilities on establishment of services for commercial enterprises
16	City Status Snapshot Bond (credit) rating is very good (A-1 Moody’s and Standard and Poor’s) Shortage of capital funds means fewer road projects will be done and they will take longer Operating budget is adequate with healthy fund reserves Operations efficiency has been dramatically improved with substantial savings Emphasis on retail development is starting to yield significant results Cooperation with Huntsville, Madison County, and State and Federal delegations has never been better
17	Conclusion The Tennessee Valley’s rapid growth rate is accelerating as a result of the BRAC decision. Key initiatives are already underway to address opportunities & challenges of rapid growth: Sustainable growth initiatives Economic development incentives Intergovernmental/interagency cooperation Infrastructure improvements Regional planning & coordination
18	Appendix A Millage Rates
19	Millage Rates in Madison