A newly obtained fiscal plan outlines the projected costs, tax revenue and municipal services associated with a proposed annexation of nearly 900 acres north of Plymouth.
The October 20 plan, prepared with the assistance of financial advisory firm Baker Tilly, covers approximately 897 acres associated with Indiana Tool & Manufacturing Co. and IN50 Lilac Holdings LLC.
The proposal includes 20 parcels, with 18 also being considered for industrial rezoning.
According to the fiscal plan, Plymouth anticipates approximately $32,000 in additional municipal operating expenses during 2028, including $22,500 for street maintenance and $9,500 for police vehicle fuel and repairs.
The annexation would add approximately five miles of roads to the city’s maintenance responsibilities.
The plan does not anticipate additional police officers or increased fire department expenses as a direct result of annexation.
Projected Financial Impact
The city’s projections show an initial $32,000 negative financial impact in 2028, before additional property tax revenue is expected to begin the following year.
For 2029, the plan estimates $32,960 in additional operating costs and a positive net financial impact of $2,705 after anticipated tax revenue.
Positive annual impacts of $3,131 and $3,549 are projected for 2030 and 2031, respectively.
However, those annual gains would not fully offset the initial shortfall within the four-year projection. Combined, the figures represent a cumulative negative impact of $22,615 through 2031.
The fiscal plan anticipates using available city resources to cover revenue shortfalls.
Water, Sewer and Future Development
The document states that Plymouth’s water and wastewater systems have the capacity to serve the annexation area when connections are requested.
The plan indicates that utility extensions are typically paid for by property owners or developers, while connection fees would cover hookup costs.
However, the document does not include specific water or wastewater capacity calculations or projections for a particular industrial development.
The financial estimates are based on existing property valuations and anticipated municipal service costs rather than a defined, fully developed industrial project.
Future development would be subject to additional planning and infrastructure requirements.
The proposed annexation and industrial rezoning remain under consideration. The Plymouth Plan Commission is expected to consider the proposal November 4, with a City Council annexation hearing scheduled for November 9.