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MOUNT AIRY

The dispute between residents who called the city of Mount Airy's = annexation=20 of the Cross Creek and Laurel Hills communities "illogical" and city = leaders who=20 say that those areas are "clearly developed for urban purposes" will = soon be=20 heard by the N.C. Court of Appeals.

A three-judge panel for the court of appeals has agreed to hear oral=20 arguments in the case on Oct. 18.

The annexation was to have taken effect on May 1, 2004, and would = have=20 brought 1,385 residents into the city limits. Residents filed a lawsuit = against=20 the city in 2003.

A Surry County Superior Court judge ruled in the city's favor in = April 2004,=20 but residents have appealed the ruling to the N.C. Court of Appeals.

City officials have long argued that densely populated areas = surrounding the=20 city should be brought into the city limits. Commissioners voted to = annex the=20 areas April 21, 2003, despite widespread opposition.

Since 2001, the city has been looking for ways to increase revenue to = make up=20 for previous cuts in tax rates and spent savings. It is estimated that = bringing=20 the two communities into the city limits would increase the tax base by = more=20 than $100 million and create about $1 million more in annual = revenue.

In July 2003, more than 500 residents filed the lawsuit against the = city,=20 saying that the annexation would increase their costs and that they had = never=20 intended the areas to become part of the city.

Edwin Woltz, an attorney who lives in the area and who also = represents the=20 group, said that many of the residents want to continue using private = water and=20 sewer services. Opponents also questioned whether the city had = considered how=20 much it would cost to extend city water and sewer services to the = areas.

In the lawsuit, the residents said that the cost of the annexation -=20 estimated at $10.7 million for water and sewer, police, garbage = collection and=20 fire protection - had been grossly understated. They questioned the = city's=20 ability to provide the services and asked that the annexation be = declared null=20 and void.

Attorneys for the city said that the plan for annexing the areas had = included=20 adequate estimates.

In April 2004, Judge Steve A. Balog of Surry Superior Court ruled = that the=20 city of Mount Airy had complied with state law in its annexation.

The residents failed to show how they had been wronged and presented = no=20 material injury, attorneys for the city had said.

Woltz and other residents appealed to the N.C. Court of Appeals in = the=20 fall.

Once the residents file the brief, the city will have 30 days to file = a=20 response. The court of appeals will review each, as well as the more = than 2,000=20 pages included in the original case transcript. A decision is expected = later=20 this year.

=95 Sherry Youngquist can be reached in Mount Airy at (336) 789-9338 = or at syoungquist@wsjournal.com

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