MUNICIPAL ANNEXATION PROJECT

Phases and Project Components

Phase 1. Establishment of Special Committee

🟢 Completed

Mayor Tyler M. Eblin signed a resolution adopted by the Rutland Village Council creating the Special Committee on the Municipal Annexation of Unincorporated Territory, or Annexation Committee in short, to implement Phase I of the Village of Rutland Municipal Annexation Project, which involves the identification of unincorporated territory proposed for annexation by the Village of Rutland, the study of advantages and disadvantages, both fiscally and politically, in the implementation of the proposed annexation, and to identify the means by which both the Village and those residing within the unincorporated territory proposed for annexation can benefit from the project as a whole.

Phase 2. Identification of Areas Proposed for Municipal Annexation Feasibility Analysis

🟢 Completed

During its meeting held May 6, 2024, the Special Committee on the Municipal Annexation of Unincorporated Territory voted to include the following areas as the proposed areas for municipal annexation by the Village of Rutland:

• From the corporation limit on Main Street near Rutland Service Center east to Noble Summit Road, therein all properties abutting State Route 124.

• From the corporation limit on Depot Street near Martin Street south to Nichols Road, therein all properties abutting Leading Creek Road.

• From the corporation limit on North Main Street near Fox's Pizza Den north to White's Hill Road, therein all properties abutting New Lima Road (southbound) and all properties abutting New Lima Road (northbound) and their abutting properties.

• From the corporation limit on Salem Street west to Corn Hollow Road, therein all properties abutting State Route 124.

The above proposed areas are tentative only and may change as the Committee completes its study.

Phase 3. Municipal Annexation Feasibility Analysis

🟢 Completed

The Village of Rutland partnered with Ohio University, Mayor's Partnership for Progress and CT Consultants, Inc., to conduct an analysis, or study, of the proposed municipal annexation. The analysis included:

• A review of the Village's fiscal status.

• GIS identification and mapping of the territory proposed for annexation.

• Engagement and understanding of the political view of those who may be affected by the proposed annexation.

• Identification of the fiscal impact on the Village, township and school district.

• General advantages and disadvantages.

CT Consultants, Inc., prepared a final report, which was advanced from the Annexation Committee to the Village Council, who will render a decision whether or not to proceed to the subsequent phase of the Village of Rutland Municipal Annexation Project, which would involve petitioning owners of real estate to become part of the Village.

Phase 4. Final Report and Recommendations by the Special Committee

🟢 Completed

On July 29, 2024, the Special Committee on the Municipal Annexation of Unincorporated Territory approved and released its final report of findings and recommendations. That report was advanced to the Rutland Village Council for its consideration. Summarily, the Special Committee:

• Recommended four areas for municipal annexation:

  • East of Rutland corporation limit to the easternmost property boundary of Meigs Local School District (Meigs Elementary School).

  • North of Rutland corporation limit to White's Hill Road and to Little Leading Creek on Happy Hollow Road;

  • Northwest of Rutland corporation limit to the northermost property boundary owned by Martha McDaniel.

  • Southwest of Rutland corporation limit to include the former railroad bed intersecting Depot Street.

• Recommended regular annexation by simple majority petition as the method of annexation.

• Recommended water and sewer rate changes be ascertained prior to proceeding with annexation and suspending annexation if persons annexed would subject to higher water and sewer rates.

Phase 5. Consideration by the Village Council

🟢 Completed

Frequently Asked Questions

Why did the Village consider municipal annexation?

The primary purpose and goal of annexation is simple: To establish and maintain fiscal solvency and improve the Village of Rutland and surrounding area for all. Municipal annexation is intended to accomplish a triad of goals as outlined below.

• Expand the Tax Base

The first goal of municipal annexation was to expand the tax base. The current square mileage of the Village is 0.87 square miles. Of all parcels of land, the Village has 189 housing units as of the 2010 U.S. Census, 11 businesses and five tax-exempt religious organizations. The Village currently lacks a large industry with a large number of employees from which tax revenue can be generated.

Parcels of real estate are subject to property taxes. A parcel lacks sufficient tax value unless it contains an occupied housing unit or business.

Following a flooding disaster in 1999, the Village of Rutland, through funding acquired by the Federal Emergency Management Agency, 26 properties, each of which are now declared as a mitigated property, upon which development is prohibited. Structures located on such properties were either demolished or elevated. Many of these properties sit vacant and the tax value of these values is substantially diminished.

Businesses are subject to a one percent net profit tax and employees are subject to a one percent earnings tax. Both types of taxation are referred to as an income tax.

Prior the assessment of the one percent income tax, businesses were not contributing any portion of their net profit to Village services, other than through real estate taxes. Employees were not contributing any portion of their earnings to Village services.

The Village relies on a strong, reliable tax base to maintain fiscal solvency and sustain Village operations and services.

Tax base defined. The tax base is the total amount of income, property, assets, consumption, transactions, or other economic activity subject to taxation by a tax authority, i.e. Village of Rutland.

Mitigated property defined. A property acquired by the Village of Rutland through grant funding from the Federal Emergency Management Agency for the purpose of remedying existing flood damage and mitigating future flood damage.

• Increase Tax Revenue

The second goal of municipal annexation was to utilize the expanded tax base to increase tax revenue. While the estimated increase in tax revenue following municipal annexation is to be determined through the annexation feasibility study, it is sure to be increased by some degree due to an expanded tax base.

Operating and maintaining a Village is costly. Police protection alone currently requires $48,000.00 budget, which only allows for one paid Village Marshal, compensated at approximately $15.60 per hour with an additional $12,000.00 allocated for operating costs (i.e. patrol vehicle fuel, equipment, and jail expenses).

To review the Village's budget, click here.

• Improve Services for All

The third goal of municipal annexation was to utilize the expanded tax base and increased tax revenue to improve Village operations and services for all, subject to the overall revenue estimated to be received following annexation. These improvements include:

• Increasing hours of police protection from 32 hours per week to 104 hours per week, providing for both day shift and night shift patrol each week day.

• Creating a full service Department of Public Service to adequately, efficiently and effectively maintain Village streets and infrastructure. Currently, the Department of Public Service provides 16 to 24 hours per week of maintenance service with limited equipment, inadequate to meet the needs of the Village.

• Revamping the Village's stormwater system to mitigate flooding events.

• Enhancing parks and recreational services by improving parks and recreational facilities and creating additional youth programs.

What are the current Village tax rates?

The most commonly inquired issue relative to municipal annexation is additional tax requirements. The Village of Rutland currently levies three types of taxation: permissive tax, property tax, income tax. While it is true that those residing in the Village are subject to increased taxes, however, the increase in taxes is returned with the receiving of municipal services not received prior to annexation. Additionally, discounts in homeowner's insurance is available for those residing within an incorporated city or village that offers public safety services, such as the Village of Rutland. These discounts can help offset the additional tax revenue. The following tables help to provide an explanation of the additional property tax and income tax which would be assessed if your property was annexed.

• Permissive Tax and Property Tax

Property taxes are assessed on the valuation of your property, home and any other structures located on the property. The assessment of property taxes are subject to voter approval.

Currently approved by Village voters are four property tax levies. These levies include three operating expense levies and one police protection levy. Each levy is 2-mill, which is equal to $0.20 taxed for every $1,000.00 of property valuation.

Those who annex into the Village of Rutland will be subject to an increased property tax rate, approximately 10%. The table provided to the right helps explain the estimated additional property tax a property owner would be subject to if his or her property was annexed into the Village.

In addition to property taxes, the Village levies a $5.00 permissive tax against the annual registration of motor vehicles owned by Village residents. Each motor vehicle registered with the Bureau of Motor Vehicles is assessed a $5.00 permissive tax charge upon registration. Revenue from the permissive tax is only utilized for the maintenance of Village streets.

• Municipal Income Tax

Businesses are subject to a one percent net profit tax and employees are subject to a one percent earnings tax. Both types of taxation are referred to as an income tax.

What services will be provided if I decided to annex my property to the Village?

Public services not currently afforded to those residing within an unincorporated territory will be provided if such territory is annexed into the Village of Rutland. The Village currently provides an array of public services and programs benefiting Village residents. Those who agree to annex into the Village will receive the following services. Payment of increased tax rates pays for these extra services not currently enjoyed by non-Village residents.

• Police Protection

The Village of Rutland Department of Police provides police services four to seven days per week, with regular police protection provided at a minimum of 32 hours per week. The limit of these hours is based upon the budget constraints of the Village's current size. With an increase in population and an expanded tax base through annexation, the hours, days and shifts of police services would also increase. Police services provided include:

• Combination of day and night police patrol by uniformed officers in marked police patrol cruisers with a response time of less than three minutes.

• Criminal interdiction and investigation.

• Traffic patrol and investigation.

• Citizen's Well-Being Program: Deputies will routinely check homes and the wellbeing of disabled persons registered with the program while on patrol.

• Safe and Secure Residence Program: Deputies will routinely conduct house checks to ensure security of homes while owners have left the Village for vacation while on patrol.

• Safe and Secure Business Program: Deputies will routinely conduct business checks after business hours to ensure security of buildings and facilities while on patrol.

• Police street cameras to identify behaviors and trends of criminal activity and to deter crime.

Did you know? The Village Police Department does not have jurisdiction in any area outside the corporation limit of the Village of Rutland, unless the Village Marshal or a deputy is specifically requested to provide assistance by the County Sheriff's Office or a neighboring Village.

Why annexation matters: An increased population and an increased tax base allows the Village Police Department to improve its operating budget, which allows for the Department to place additional boots on the ground during additional patrol hours. Together, this results in the improved identification of crime and the reduction in criminal activity.

• Traffic Control and Safety

All streets located within the corporation limits of the Village of Rutland are subject to the speed limit laws designated for municipalities. Streets not including a state highway are designated as local Village streets, on which the speed limit is 25 miles per hour.

The Village Council can pass legislation increasing this speed limit on roadways in areas based upon the results of a speed study and the concerns of local residents and businesses located in those areas.

For example, if 25 miles per hour is deemed too low by residents residing along a particular roadway, the residents may petition the Village Council to raise the speed limit to a limit appropriate based upon the results of a traffic study.

Why annexation matters: Reduced speed limits on roadways ensures the safety of businesses, residents, pedestrians and motorists alike.

• Code Enforcement

The Village of Rutland Division of Code Enforcement, an arm of the Village Police Department, provides code enforcement services on a weekly basis. With an increase in population and an expanded tax base through annexation, the hours, days and shifts of code enforcement services would also increase. Code enforcement services provided include:

• Identification, investigation and prosecution of public nuisances, such as high grass, refuse and junk motor vehicles, among others.

• Identification, investigation and condemnation of unsafe and blighted commercial and residential structures.

• Website and telephone notification program for residents to report violations.

Did you know? The Village of Rutland has the authority to independently condemn, vacate and abate an unsafe and blighted structure within its Village limits, whereas the County Health Department does not. Ohio law requires the County Health Department undergo Court proceedings, which substantially delays the process in addressing the issue at hand.

Why annexation matters: Effective and proper code enforcement helps to ensure the health and sanitation of Village residents, the general aesthetic of the Village and helps to sustain or improve property values by ensuring neighboring properties are compliant with the provisions of the Rutland Municipal Code.

• Street Lighting

The Village of Rutland provides street lighting throughout the Village each night of the week and is currently working to revamp all street lighting with brighter, more energy efficient LED lighting. Areas annexed into the Village would receive adequate street lighting along public roadways in front of homes, businesses and public walkways.

Why annexation matters: Street lighting ensures a sense of security and significantly reduces crime.

• Stormwater Management

The Village of Rutland is comprised of a municipal stormwater collection and distribution system. The majority of unincorporated territory sought for annexation lacks storm sewers, which requires property owners to develop and maintain their own drainage system and install and maintain their own culverts. Storm sewers could be added to areas annexed into the Village of Rutland, connected onto the Village's existing stormsewer system.

• Street Maintenance

Maintenance of Village streets in provided by the Village Department of Public Service. The Department integrates annual maintenance programs into its regular service to Village residents, including without limitation:

• • • Regular inspection of streets or warranted repairs or hazards.

    • Pothole repair.

    • Street cleaning.

    • Noxious vegetation control.

• Parks and Recreation

The Village of Rutland maintains two municipal parks, including the James Vennari Memorial Park and Sammy Robinson Field. In addition to park maintenance, the Village operates a full-service community service. Village residents are eligible for discounts in park permits and facility reservation fees.

• Grants Administration

The Village of Rutland has on staff an experienced, professional Grants Administrator and grant writer who works regularly to procure and administer all grant programs, which will benefit those residing in unincorporated territories annexed into the Village.

• Advocacy and Public Service

As a Village resident, you have the dedicated service of and representation by your Village officials in the advocacy of your community at the county, state and federal level.

As a municipal corporation, a Village has greater power to work for and properly serve its constituents than a township or county government. In Ohio, cities and villages have home rule power, whereas townships and county governments do not.

The Village of Rutland exercises its home rule power to:

• • • Create and implement municipal programs and incentives.

    • Regulate issues important to Village residents and their families.

    • Police its community and deter crime.

    • Represent the needs and visions of Village residents.

Charts and Tables

Table: Comparison of Property Taxes Before and After Annexation

Table: Assessment of Income Taxes