INDIANAPOLIS — Covering what Chairwoman Rep. Sharon Negele, R-Attica, called an important and tricky subject, the Interim Study Committee on Government began its examination of Indiana's annexation laws Monday.
The outcome of the hearings could affect future annexations in Madison County, which has experienced a number of annexations, and across Indiana.
In its first of three meetings, the committee heard hours of testimony from both sides on an issue that has become very prevalent in Indiana in recent years. The committee is tasked with looking at a variety of issues on annexation including reasons for annexation, contiguity requirements, involuntary annexations and remonstrances.
Nowhere has annexation been more prevalent than in Madison County. In the past two years annexation has been completed or attempted by several cities and towns including Anderson, Alexandria, Ingalls, Lapel and Pendleton. Elwood is also looking at a possible annexation as a way to save the Cattails Golf course.
State Rep. Bob Cherry, R-Greenfield, represents the southern portion of Madison County including Lapel, Ingalls and Pendleton. He also represents Fortville, a town just south of Madison County that has also had an annexation battle in recent years.
Cherry said the main point of discussion for the committee will focus on involuntary annexation, which are annexations initiated by a town or city. This is different from voluntary annexation that is initiated by a resident wanting to come into the municipality. Voluntary annexations must also have signatures from at least 65 percent of the homeowners in the area.
Cherry said Indiana is one of the last states in the U.S. with involuntary annexations, which he thinks are responsible for most of the strife between municipalities and property owners.
"This has been an area of concern for the entire state for some time," Cherry said. "We need a more balanced opportunity. We need to make sure citizens have a right but we also want to make sure cities and towns can move ahead as well."
Susie Whybrew, who lives near Fortville, said she and her rural neighbors were shocked when they all received a certified letter from the town notifying them their land was being annexed. After several meetings and amendments to the ordinance, the Whybrews and others decided to remonstrate against the annexation. The case is still awaiting a judge's decision.
"My sincerest wish is to see involuntary annexation abolished," Whybrew told the committee. "Please protect the property owners and farmland."
Rhonda Cook, representing the Indiana Association of Cities and Towns, said annexations are a good sign for communities and show economic development and growth.
Alex Intermill, an attorney who represents towns such as Pendleton and Fortville, also testified. He said involuntary annexations should be kept legal because municipalities need a way to plan ahead.
"Planning is the key to annexation," Intermill said. "And sometimes planning looks ahead 20 to 25 years. Cities or towns don't know when developers are going to show up but they need to be ready."
He referenced the Summerlake community as an example of what happens when an area isn't annexed before it's developed. He said those residents pay more for fire and police protection because they're outside any town limits and municipalities are hesitant to annex them due to the dense population.
While the committee members said they don't want to completely limit what towns can do, they are concerned involuntary annexation can be used as a way to increase tax bases and bring in more money.
Another lawyer involved in several annexation cases, Steve Buschmann, said every case he is currently involved with deals with rural land, which is taxed at a higher rate than residential. State property tax caps limit residential property owners from paying more than 1 percent of their assessed value, that cap is 3 percent for rural property.
Cherry said ultimately the committee needs to find a balance.
"We know there's going to be people on both sides who don't get what they want," Cherry said. "But we need to find that sweet spot and keep moving our state forward."