6.3. SR 05-24-1999
rei ---'\)
( );
trl<
Item #6.3.
River
MEMORANDUM
TO:
Mayor & City Council
Pat Klaers, City A~~rator
May 24, 1999 'V/f/
FROM:
DATE:
SUBJECT: School Street Assessment Review
It is in everyone's best interest to not have the city and school go to court
regarding the assessment to the School District for its share of the School
Street public improvement project. While I am confident the city would win
the appeal from the School District, I also understand that such a School
District appeal would be "newsworthy" and most likely on the front page of
the Star News. This type of publicity would do nothing to improve the actual
and the public perception of the school/city relations.
. According to what Dr. Flannery indicated at the May 10 assessment hearing,
the School District's appeal is, at least in part, based on the belief of the
School Board that the district should not be the only taxpayer paying for the
street. If the appeal is truly based on this principle, then the city will not be
able to help the district. On the other hand, if the School District appeal is
based on the desire to pay less for the public improvement project, then the
city can always playa role in this situation by paying more from the city
Municipal State Aid (MSA) fund.
If some reduced amount is assessed to the School District, one of the issues
that must be considered is what happens with the next public improvement
project where the assessment is appealed or a request for a reduction is made
by a group such as a local church, the county, the School District, Guardian
Angels, etc. In this regard, how is the School Street project and School
District so unique that we are not going to be getting ourselves into a difficult
situation with future requests? This issue will need some council discussion.
.
Regarding the city paying more with MSA funds, most of the council is aware
from past experience that there is never sufficient MSA funds to go around
and there always seems to be more city MSA public improvement projects
that are needed than there are funds available. Over the last ten years the
city has frequently bonded for MSA projects in anticipation of future
13065 Orono Parkway. P.O. Box 490. Elk River, MN 55330. TDD & Phone: (612) 441-7420. Fax: (612) 441-7425
.
.
.
allotments and has also frequently advanced encumbered funds from the next
year to use in the current year. Two expensive MSA projects that are on the
horizon include; l.)the extension of Business Center Drive plus the Highway
10/W aco signal, and 2.) the acquisition of right-of-way for Tyler Street north
of County Road 12 plus funding any shortage for this entire project.
If the council makes a reduced assessment offer to the School District, then
the council is going to have to think about what happens if the School District
responds that they will drop the assessment appeal only if the total is at $XX
(pick your number...$70,000, $90,000, $100,000...). It is difficult to
"negotiate" a settlement at public meetings between two different public
agencies and with an assessment appeal hanging over the situation. An
option is to pick an amount and, in effect, say that this is our best and final
offer, and make it a take it or leave it situation. If we don't say this at some
point in time, we can have negotiations at public meetings for an extended
period of time, which, again, will do neither the school or the city any good.