Maggie Valley is preparing for a fight.

Town Manager Scott Bufkin’s 2001-2002 budget recommends that aldermen include $50,000 to pay a lawyer for defending a recent annexation in court. The budget also does not include the $60,715 the annexation was estimated to add to the town coffers in property taxes, nor does it include other state monies expected to accrue due to the recent annexation.

In his budget statement, Bufkin spelled out his belief that annexation is important and necessary for Maggie Valley.

“Through selective annexation the town can continue to grow, diversify and expand services as well as maintain reasonable tax rates. ‘No growth’ policies result in stagnation and ultimately higher taxes due to lack of growth ...,” Bufkin wrote.

According to Paul White, one of the leaders of the anti-annexation group, the town is correct in its assessment. The anti-annexation group is moving forward with plans to file a lawsuit.

“We plan to file this thing before the deadline, probably around June 25,” White said. The organization, Good Neighbors of Maggie Valley, raised the $20,000 needed to retain attorney Wes Hodges of Wilmington. He is known as a specialist in fighting annexations.

The town annexed two tracts May 8, one with 60 acres and 120 residents and another with 122 acres and 344 residents. The annexation was set to take effect June 30, but state law delays that if a lawsuit has been filed. Whether the challengers win or lose, they will not have to pay property taxes during the time the suit is in dispute. If that takes five years, they save five years of property tax.

Bufkin, facing a tough budget year and the annexation dispute, has recommended a 5-cent tax hike for Maggie Valley residents, which would bring the levy to 45 cents per $100 of valuation.

“I think the board was disappointed the tax increase was necessary, but they are also wary of pulling so much out of reserve,” said Bufkin.

One cent of property tax in Maggie Valley raises about $11,500.

The town’s total budget for 2001-2002, as recommended by Bufkin, is $1.44 million, down 4.9 percent from last year.

Included in the budget is $48,000 for start of Phase I of the Greenway project; money to pay the salary for a planner and code enforcement officer; $1.65million for the water and sewer fund, which is a self-supporting separate budget; $69,000 for sidewalk construction, down from $138,000 last year.

 

Home
The Smoky Mountain News