1. Madison Community Update presented by Mayor Arthur S. “Sandy” Kirkindall

2. Base Realignment & Closure (BRAC) Bringing additional major commands & thousands of new jobs to our area in the very near future

3. As of 15 July 2006 Estimated Net Manpower Impact: 4,024 Net Military Gain: 55 Net Civilians Gain: 1559 Net Contractors Gain: 2410 Incoming:ManpowerYear AMC/USASAC17502010 MDA/SMDC24282010 Rotary Wing/ATTC3732010 2nd Recruiting Brigade1132009 Discretionary99 Total In:4763 Outgoing:ManpowerYear OMEMS4502010 PM TOCS1292009 AMCOM622009 Joint Robotics762009 Discretionary22 Total Out:739 BRAC Move Dates & Numbers* *Information provided by Colonel John Olshefski, Redstone Garrison Command

4. Making BRAC Successful Sustainable growth –Prevent new development from overloading schools & roads –Place the community’s needs first Economic Development –Bring a greater variety of businesses to Madison & increase sales tax revenues Education –Keep City schools among best in the state

5. BRAC Impacts of Development The estimated cost of initial capital needed to prepare for BRAC is broken down into 6 general categories: –Road construction & improvements –Public Safety buildings & vehicles –Public Works building & equipment –Park acreage (3 per 1000 residents) –Additional public school classrooms –Water & wastewater infrastructure expansion/enhancements

6. BRAC Impacts of Development (per new household) Roads: $ 2,246 Public Safety: $ 653 Public Works: $ 245 Parks & Recreation: $ 510 Schools: $ 7,150 Water & Wastewater$ 3,000 Total new household impact:$ 13,804

7. Cost Recovery Total Capital Cost Impact of BRAC (2,500 households) = $34.51 million Cost Recovery –Water & Sewer Impact Fees $6.25 million –Sales tax on building materials $5.25 million Net Non-recovered Cost = $23.01 million ($9,204 per household)

8. Preparing for BRAC Working closely with leaders at local, state & national level to prioritize & coordinate BRAC planning activities Restructuring Capital Improvement Project (CIP) list to focus on essential infrastructure needed to accommodate growth acceleration Continuing to develop & enforce “smart growth” policies & programs Incorporating BRAC-related growth projections into economic development initiatives

9. Intergovernmental Cooperation Combining or consolidating services where it makes sense –County-wide library system, landfill, electric service, EMA, and 911 (need seats on Library, EMA, and 911 Boards - being worked) –County provides garbage pickup for Madison –One additional area where could have combined services is sewage treatment Should also standardize public safety communications

10. Millage Rates in Madison *Limestone County School Tax to be increased to 7 mills as of 1/1/07 per Amendment 2

11. What Does “Millage Rate” Mean? 1.0 mill of property tax costs $1.00 for each $1000 of assessed value. The assessed value of a residence is 10 percent of the appraised value, i. e. assessed value = 0.1 x appraised value. Note: There is a reduction in appraised value for the homestead exemption. Commercial property is assessed at 20 percent and utilities at 30 percent.

12. Sample Property Tax Breakdown On a $300,000 Madison home, the annual property tax in Madison County is about $1,677. Of that $1,677... –$185 goes to the State –$788 goes to the County –$704 goes to the City; of that, $324 goes to Madison City Schools $204 is a General Tax $162 goes to the Water & Wastewater Board $14 goes to the Library

13. Sustainable Growth The growth that we are currently experiencing, in addition to the growth to come as a result of BRAC, can be beneficial, but we must be careful to ensure that it is controlled, sustainable growth that contributes to the overall economic development of the community –Make growth pay for itself as much as possible $13,804 capital impact from every new house (schools, water, sewer, fire trucks, etc.) Assess appropriate fees on growth (building permit fees hiked from $250/house to 0.8% now, increasing to 1.0% in 2007)

14. Making Growth Pay for Itself Water/sewer impact fees hiked 58% for residential and eliminated for retail commercial. Costs City approx $2000/house/year to provide services; property tax covers about 17% of that –45% of General Fund revenue is sales tax, so we have to boost sales tax base

15. Economic Development Shop Madison First initiative Economic Development incentives Online information & forms for opening new business Aggressive campaign to market Madison to retail industry & attract new business Cooperation with Water & Wastewater Board & other utilities on establishment of services for commercial enterprises

16. City Status Snapshot Bond (credit) rating is very good (A-1 Moody’s and Standard and Poor’s) Shortage of capital funds means fewer road projects will be done and they will take longer Operating budget is adequate with healthy fund reserves Operations efficiency has been dramatically improved with substantial savings Emphasis on retail development is starting to yield significant results Cooperation with Huntsville, Madison County, and State and Federal delegations has never been better

17. Conclusion The Tennessee Valley’s rapid growth rate is accelerating as a result of the BRAC decision. Key initiatives are already underway to address opportunities & challenges of rapid growth: –Sustainable growth initiatives –Economic development incentives –Intergovernmental/interagency cooperation –Infrastructure improvements –Regional planning & coordination

18. Appendix A Millage Rates

19. Millage Rates in Madison State Tax6.5 mills -School Tax -Soldier Tax -General Tax 3 mills 1 mill 2.5 mills Municipal Tax24 mills -General Tax -Water & Sewer Tax -Library Tax -School Tax 7 mills 5.5 mills 0.5 mills 11 mills Madison County27 mills -General Tax -Road & Bridge Tax -School Tax -Special School Tax 7 mills 4 mills 5.5 mills 10.5 mills Limestone County22 mills -General Tax -Public Buildings Tax -Hospital Tax -School Tax -Special School Tax 7 mills 3.5 mills 3 mills *5.5 mills 3 mills *School Tax to be increased to 7 mills as of 1/1/07 per Amendment 2

20. Appendix B Maps