Document Type

Master's Culminating Experience

Publication Date

1996

Abstract

This study was conducted to determine the economic implications of the proposed merger between the Village of Clayton and unincorporated Randolph Township, as well as critique the plan laid out by the Merger Commission. The focus of the study was to compare the expenditures of ten area cities with the proposed expenditures of the Merger Commission as described in their May 7 Preliminary Report. In addition, economic trends in the area were examined to fully gauge the impact of the merger on the Northmont area.

It is clear from this study that the proposed budget of the new city will be inadequate to fund key city services at even the lowest levels in the area. In key areas like police protection, road maintenance, community development, and general government, the new city has budgeted as much as 80% below the median expenditures of comparable cities in the area. The total proposed 1996 budget of $2,064,539 represents a per capita expenditure of $151, far below the median per capita budget of $560. Most disturbingly, the proposed budget for the new city would place its expenditures on each city function below the lowest city in each category examined.

The implications of this are substantial for the entire region. The City of Englewood has been responsible for 84% of the growth in commercial and industrial property values since 1989 in the Northmont area. In fact, Englewood has seen its valuations of C/I properties increase faster than any other city in Montgomery County. This merger would end Englewood's annexation of lands in the area, leaving long term new business development in the Northmont area the primary responsible of the new city. Unfortunately, the new city lacks the capacity to extend water and sewer lines into new areas, a key precondition for attracting new businesses and being competitive for ED/GE grants. Most surprisingly, the new city has budgeted only $38,000 for community development, far below the levels of any city studied. If this merger is approved, the long term development of the Northmont area will be altered dramatically.

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