If Murray were to push its border north to 3900 South, the city would run a $600,000 annual deficit for several years in the annexed area, according to an independent report commissioned by the city.
But after sorely needed but expensive road improvements were completed, the city could then reap a yearly $900,000 surplus from an expanded tax base by the year 2015, according to the March report prepared by DMJM Arizona Applied Economics."This is a kind of makes-sense annexation because it eliminates an island (of unincorporated land)," said Shannon Smith, the Murray City Council executive director, adding that Murray has watched neighboring cities like Midvale prepare to push their borders outward while Murray stays the same size.
"Growth is good," Smith said flatly.
The annexation, which would simply extend Murray's northern boundary up to 3900 South between the Jordan River and 900 East, would incorporate about 9,700 residents and commercial and industrial businesses.
The city has set no deadline to complete the move, nor has anybody begun collecting the necessary signatures of 51 percent of property owners to get the annexation effort going.
"We are cautious in Murray and make decisions very slowly," Smith said.
Murray has seen two recent annexation drives fail. This time, officials seem content to move cautiously.
"We have heard some negative feedback from people concerned about expanding our boundaries," Smith said. "We won't do this unless the people want it."
Another thing slowing down the process is the school district, where officials aren't sure how to absorb additional students into a school system that is near capacity.
The report estimated the area that may be annexed would require almost $1 million in road improvements, thus contributing to a possible $600,000 general fund deficit in the first year after the annexation, if approved. But after 20 years, the cost of road improvements would disappear and would be replaced by an expanding tax base that could be contributing almost $1 million to the general fund by the year 2015.
"Despite short-term costs, the annexation area would likely become self-supporting in the midterm and is projected to generate a surplus in the longer term," the report concluded.
Also, city officials would aim to build parks in the area, extend police protection and other municipal services. Smith said she is unsure whether the expanded city would have to configure its municipal government, say, from a five-person city council to one with seven seats.