After studying two areas for possible annexation, city leaders say the expense would not be worth the gain. But the city’s industrial parks might be fair game.

One residential area eyed by officials is west of the city on both sides of U.S. 258 and north to Paul’s Path Road, backing up to Castle Oaks subdivision. It includes Hickory Hills, Crestview and Briarwood subdivisions. The other area is south of U.S. 70 and the Neuse River, and includes Meadowbrook subdivision around Collier-Loftin Road.

Annexing the areas would mean Kinston would have to install sewers, water where needed, street lights, maintain existing streets, and install streets when needed. Four more police officers and four cars would be needed.

State law requires municipalities to provide annexed areas with all services provided to other parts of the city. Taxes and revenue from utility customers would not justify the expenses, Deputy City Manager Phil Robey said.

City engineers estimate the cost of annexing Areas 1 and 2 at $939,263. After calculating the anticipated revenue from all taxes and utilities, the estimated net loss would be $21,253 annually for the life of the 20-bonds the city would have to buy to finance necessary improvements.

Anticipated growth might compensate for some of the expense in the northern areas, but growth is not occurring there. Even if the area were to become more developed, the city would have to require any new construction to connect to city sewers to help alleviate the cost of installing those sewers.

“If we didn’t annex [Area] 1-B, you would never be able to annex Castle Hills,” Kinston City Manager Ralph Clark said.

Area 1-B includes Hickory Hills and lands to the northwest, with Castle Oaks being the most westerly border.

“The purpose is to be able to get Castle Oaks,” Councilman Joe Tyson said.

Castle Oaks is particularly attractive to city officials because of its tax value. The only way the subdivision can be annexed is by first taking in the land east of that subdivision and up to the city limits. The state requires all annexed land to have borders contiguous to the annexing municipality.

That leaves the U.S. 70 industrial parks, which already have sewer service.

“That makes a lot of sense to us financially, but we’d have to weigh it against making the industrial people upset,” Robey said.

Clark said annexing the industrial parks would be “easier to sell.” Businesses in those parks no longer would have to pay a fire tax, and could save money on their insurance premiums, he said.

The advantages of annexation, the city says, are the elimination of the fire district tax, reduced insurance rates for homeowners, reduced water and sewage rates, police protection, curbside recycling, trash and yard waste collection, street maintenance, street lighting and “priority access to low-cost parks, recreation and cultural resources facilities and programs.”

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