Finances and fire services highlighted the first day ofBrookhaven’s annexation trial as attorneys and witnesses discussedthe city’s ability to serve residents in the proposed expansionarea.

Demery Grubbs, a former Vicksburg mayor who now works as afinancial consultant, testified that Brookhaven has the financialability to take in the proposed 16.6 square mile annexation area.He said the city’s financial condition is in excellent shape andstands to get better with the annexation.

“The city’s overall financial position will actually improveafter the proposed area is taken into the city,” Grubbs said.

A significant portion of Grubbs’ testimony focused on water andsewer improvements that would be needed.

Phase 1 of the improvements, which the city has committed todoing should the annexation be approved, totals $14.1 million. Thatwork would be done in the first five years after expansion.

Phase 2 improvements total $22.6 million, but would not have tobe completed in the five-year period. Advocating the phasedapproach, Grubbs said private development or other factors couldresult in the city not needing to immediately take on theresponsibility of the second phase.

Grubbs discussed a variety of funding options the city could usefor the water and sewer work, which is the traditionally thelargest annexation-related obligation a city must meet. Optionsincluded bond issues, loans, grants and federal assistance.

On cross-examination from objectors’ attorney Jerry Evans,Grubbs acknowledged the possibility of higher rates and taxes ifthe water and sewer project was done a certain way.

“There could be adjustments in taxes and fees, if necessary,”Grubbs said.

While admitting the possibility of higher water and sewer ratesin the city and annexation area, Grubbs disagreed with an Evanssuggestion that rates could triple. One increase percentagementioned during the trial was 30 percent.

When questioned by annexation attorney Jerry Mills, Grubbs saidapproximately 400 city water service customers outside the citylimits would see their rates cut in half by being brought into thecity. Those customers currently pay twice the city rate.

Evans, though, questioned how the city could absorb theapproximately $140,000 impact. Grubbs said the city’s cash balancewould be sufficient.

FIRE PROTECTION

Later, Brookhaven Fire Chief Paul Cartwright said the city couldprovide municipal level fire protection to the annexation area andnot jeopardize the city’s current fire rating.

“I feel like we’ve got a strong Class 6 rating,” Cartwrightsaid.

Fire ratings go from Class 1, being the most protection, toClass 10, which is the least protection. Most of the annexationarea is rated Class 10, although a portion in the New SightVolunteer Fire Department district is Class 9.

During his testimony, Cartwright discussed fire inspection andbuilding code benefits of being inside the city as opposed tooutside. He also touted better response times provided by full-timepaid firefighters versus volunteers.

When cross-examined by Evans, the chief was questioned about hisbasis for saying municipal services are needed in the annexationarea. Cartwright acknowledged having nothing to support the needsassessment beyond his personal knowledge of firefightingactivities.

“I’m not trying to push my services on anybody,” Cartwrightsaid.

Later in his testimony, though, Cartwright said the 108 calls bythe city fire department into the proposed annexation area over thelast five years was evidence of the need for city fire servicesthere. In response to a question from Mills, Cartwright said he hadnever been told to go away when the city responded to an annexationarea fire or Jaws of Life call.

“I’ve gotten a few cakes and pies thanking me for coming,”Cartwright said.

FIRE INSURANCE

The last witness to take the stand Wednesday was Larry Carr,with the state Ratings Bureau. The bureau assigns fire ratings forhome and business insurances purposes.

Generally, Carr said, homeowners would see some insurance ratesavings by coming into a Class 6 district from a Class 10. He saidthere are some deviations on rates among insurance companies, butthere would be some savings.

According to a city trial exhibit, the annual premium on a$100,000 frame construction home would drop from $2,310 in Class 10to $1,004 in Class 6. For a masonry construction home with the samevalue, the premium would go from $1,607 in Class 10 to $904 inClass 6.

Regarding the city fire department’s rating, Carr said there maybe some excessive response times following annexation. However,those should be addressed with three additional firefighters, assuggested by the bureau, and allow the city to keep its rating.

“If they do what we say they should, they should be able tomaintain under current conditions,” Carr said.

Carr also spoke about “false classification,” a practice byinsurance companies of giving lower insurance premiums toresidences outside the city. He said the practice hurt fireprevention services across the state.

“It kind of got out of hand, and I understand that it’s comingback around,” Carr said about efforts to discontinue thepractice.

Also, Carr said some cities had stopped going outside theirboundaries to fight fires.

The city’s annexation trial was to resume Thursday morning withBrookhaven Police Chief Pap Henderson on the witness stand. Due toscheduling conflicts, no testimony is expected to be heardFriday.

Three weeks have been set aside for the trial. Attorneys expectit can be concluded by Nov. 21.