City shifts annexation focus to I-11 interchanges
KINGMAN – The City doesn’t plan on moving forward with annexing Kingman High School or the airport in the near future, however, annexation of other areas is now being considered.
“Just looking at the revenue streams versus what the services would be to serve those areas, they’re not penciling out,” said City Manager Ron Foggin. “For us, I think there’s a different way to look at it and that’s what would the annexation look like around the interchanges …”
As part of its growth and economic development strategies, the City had considered annexation of the high school, as it would be nice for Kingman High School to be within city limits.
However, doing so would not be cost effective due to the lack of sales tax generators in the area. That means the City would spend more on services, such as police and fire, code enforcement and more, than it would receive back in sales tax revenues.
The airport poses a similar problem regarding sales tax revenues, as the majority of businesses at the industrial park operate by way of wholesale.
“We just cannot seem to make those pencil,” Foggin said of annexing the school and airport. “Without that primary property tax, to this point, we can’t justify the annexation of the airport.”
But there remains another option for annexation.
“Here’s kind of where the future things are happening for us, and so if we were going to focus some energy and effort, why don’t we look to the I-11 Kingman Crossing and Rancho Santa Fe interchanges if we are going to consider some annexation now,” recommended Economic Development Director Gary Kellogg.
City Manager Ron Foggin called annexation of the interchanges an “area of opportunity.”
“That’s where we’re recommending that we kind of take our focus,” Foggin said. “We don’t forget the idea that if things change and there’s revenue sources for the airport, for the industrial park, for the high school in that area, or if things just change and we see an increase in revenue, then we bring those back and talk about how do we bring those in to the city. But really change our focus to where the properties are out by the interchanges that should be in the city that currently aren’t.”
The matter was discussed during work session and no action was taken by Council.