As a result of a compromise at the council’s last meeting January 4, the Westonka School District will pay 40% and Minnetrista taxpayers will pay 60% of the Sunnyfield Road reconstruction costs for the road to the high school.
You may remember Mayor Whalen had advocated the city pick up 80% of the cost for her buddies at the school district but lost that battle January 4, no doubt a disappointment to Westonka School Superintendent Kevin Borg and school board members that worked tirelessly to get Whalen reelected last November.
Now Mr. Borg is back begging Whalen for another special favor. He’s asking the city to waive the interest on paying back the assessment…completely…something the city has never done for other property owners it has assessed.
Think about this. One of the reasons the city’s policy is to cover 50% of road reconstruction costs for property owners and not charge property owners for 100% of the cost is because property owners are taxpayers and some of those tax dollars should be used for their roads. The Westonka School District is not a taxpayer. The Westonka School District is only a consumer of city services (snow removal, public safety) but actually pays nothing for those city services as residents do.
According to city policy, if your street needs reconstruction you, as a property owner, and your neighbors along the project route would be assessed 50% of the project cost which can be paid back over 20 years. The interest rate you and your neighbors would pay the city, unless you chose to pay it back all at once, would be 5%. There have been a handful of exceptions over the years to the policy for some low-density areas but for the most part the city has been consistent in applying its policy.
Mr. Borg, in his letter to Mayor Whalen, claims that it would be reasonable not to charge the school district interest on their assessment because the city isn’t bonding for the project and it’s being paid for with MSA dollars. So what? Whether or not the city bonds for the project has absolutely no bearing on whether the city charges property owners interest. Why should the school district be exempt when no one else is? We’ve never exempted other property owners from interest payments when MSA funds were used on their roads.
What Borg is doing in his letter to Whalen (on page 61) is what’s called “anchoring” in a negotiation. By asking for the interest to be waived completely he’s hoping the council might come back with a compromise and lower it from the 5% city policy, especially if Whalen pleads his case. I hope they have the backbone to say no.
By virtue of the fact the school district isn’t a taxpayer in Minnetrista, has a budget close to ten times that of the city’s, is primarily responsible for the road’s condition and whose students are from many other cities, not just Minnetrista, they should not be asking Minnetrista taxpayers for favors. They should be glad we’re not making them pay 100%.
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