Annexation Series: What’s the Bottom Line for Home Owners?

Updated Oct. 20, 2011

This is part of Norcross Patch’s five-part series about the potential annexation of an area southwest of the city, along Mitchell Road. We have already addressed fiscal responsibility, code enforcement and planning. In a final article, we will revisit the issue of crime and security.  

The state Senate passed a bill to annex additional land into the Norcross city limits, sending the measure on to Gov. Nathan Deal’s desk, then to the residents who live in the area to vote on on Nov. 8. 

For many of those residents, especially in these lean times, it may all come down to dollars and cents. Norcross Patch did an analysis of the additional cost a potential city resident could expect to pay in property taxes—and what they could expect to save in storm water and garbage collection fees—based on information provided by the county and city.  (Water, electricity and sewer would remain the same for these residents.) 

The bottom line for a sample home in the area was $135.80 per year for the additional city services, after factoring in the savings on some services.   

How Much More is it Going to Cost?: Property Tax

A home at 5594 Ballard Way in the area being considered for annexation makes a good example because it is an upper-to-middle valued home for the area on a regular-sized lot. The Gwinnett County Tax Commissioner set the market value of the home at $94,100 in 2010, according to the bill found on the commissioner’s site. The assessed value was 40 percent of that, or $37,640.

The unincorporated county taxes, school tax and state tax would cost that homeowner $1,079 with some exemptions. (This homeowner took the standard $10,000 Homestead Exemption, saving $124.80, and a school tax exemption, which knocked off $77.)

An additional property tax would be assessed to this home if it comes into the City of Norcross. That millage rate is set at 6.424, according to the city tax office. Using the same home as the above example, the additional taxes assessed would be $241.80. 

For perspective, the City estimates that for the 1,177 parcels of residential land in the area being considered for annexation, $389, 869 would be collected in tax revenue. That’s about $331 averaged out over the parcels. (The City of Norcross estimates that an additional $227,145 would come from 64 commercial parcels.)

What Will I Save? Stormwater and Solid Waste

In unincorporated areas of Gwinnett County, the storm water fee in 2010 was $2.46 per 100 square feet of “impervious” space, or hard surfaces, like roofs, sidewalks and patios. The home at 5594 Ballard Way was charged $44.28 for its $1,800 worth of square footage, using that rate. 

If the annexation measure goes through, stormwater would be paid only to the city. That rate in the City of Norcross is 1.250, according to the public works department. almost half of the county rate. In our Ballard Way example, the homeowner would be charged $22.50.  He or she would stand to save about $22 per year on this service.

Right now, Gwinnett County residents pay $17.86 per month for solid waste collection. Norcross residents pay $10.87, about $7 less, and get a few more services, including yard debris pickup, which is contracted for an additional charge in some areas of the county.  Over the course of the year, that is about an $84 savings.

Recycling services are included in both the county and in the city.

What’s the Balance?

Taking the additional cost of property taxes, $241.80, and subtracting out the $84 savings for solid waste pick-up and $22 savings on stormwater, our Ballard Way homeowner would pay an additional $135.80 per year, hypothetically, in taxes for additional City of Norcross services. 

City officials say for that price they will improve the quality of life in the area through faster and more attentive police services, code enforcement, planning and development and beautification projects. “We can really start to apply some of the action plans for beautification and green space if this goes through,” says Chris McCrary, Community Development Director, “That little bit of money will help us get funding.”

What do current residents get out of the deal? Mayor Bucky Johnson says there could be a certain benefit for having more people getting the city services, even though Norcross would remain of the smaller cities in county. “For example, I’m teaching a band of 75 kids, and I add another 25 kids. There are things you could do with those 100 that you couldn’t do before. It’s an economy of scale,” he said.

Those who oppose the annexation say that it may not be revenue neutral and could have a negative impact on home values inside the current city limits, among other arguments. 

And that still begs one question: What does Gwinnett lose? According to Susan Lee, a liaison to the Gwinnett County Board Commissioners, the “projected revenue loss of approximately $17,580 in administrative fees.” Lee said that according to a country assessment, they expect to lose $215,567.34 in storm water fees if the area is annexed into the city as well. 

She said the county is “focused on… issues that effect the finances and operations” of the county but did not say if the county was concerned about this specific loss of funds.

Editor's Note: City Manager Rudolph Smith also notes that some additional exemptions could bring the property tax amounts down further in the City. It is best to inquire directly.