WINFIELD | The Winfield Town Council is reviewing a fiscal plan for annexing about 258 acres on the south and east side of the existing corporate boundaries.

The fiscal plan, presented by Deen Rogers from the town's financial adviser, Umbaugh, is required by state law for annexations. The area under consideration now is a mixture of agricultural, commercial and residential use.

He estimated the current population of the area at 271 people from about 90 households. The largest concentration of homeowners is in The Pointe subdivision. The estimated assessed valuation for the annexation area is $18,158,880. That would translate to a 5.5 percent increase in the town's assessed value.

The earliest date for the annexation to take place would be January 2010.

The town would have to begin providing noncapital improvements within one year of the annexation. Those improvements would include police and fire protection, street maintenance, trash collection and recycling, storm drainage, parks and governmental administrative services.

The cost to the town is estimated at $15,000 for fire protection, $35,000 for street maintenance and $50,000 for administration, for a total of $100,000 per year. Lake County would continue to provide police protection.

Rogers said the town would need to be granted an annexation levy appeal from Indiana's Department of Local Government Finance for taxes payable in 2011 that would equal the average annual cost to serve the annexation area.

Clerk-Treasurer Rick Anderson said the tax impact for homeowners in the annexed area would be an increase of about $75 per year. But officials were quick to point out that once annexed, the town would negotiate trash collection, and that would result in a decrease in cost to residents.

Council President Jim Hicks and council member Paulette Skinner said they believe the administrative cost estimate of $50,000 is too high and could be significantly reduced.

Supporting the annexation, Hicks said, "The corridor is designed perfectly for business. The people will benefit from being a part of the town with their home values probably standing to increase."

He said the entire five-member council supports the annexation.

"The council is unanimous in its belief that we need to be proactive to survive and attract businesses. Winfield is a very fine area to locate a family and to my knowledge we still haven't lost the title of the fastest-growing community in Indiana," Hicks said.

Added Skinner: "I see this as good for the community because we would be in control of our own destiny. If we don't annex, the county chooses what goes in there. Our zoning ordinances are much stricter than the county."

The entire fiscal plan will be up for review at the Oct. 21 council meeting.