Why Not Northland Securities, Inc.?

Open book selection?  Competition?  What's best for the entire community?  Or business as usual; for whatever reason, with the same cronies who are tossed grounders when pricing their services?

It is mind boggling to see the same name keep popping up as the district's FA/bond underwriter.  I'm sure they do a great job with their mechanics, but do they do a great job with their pricing?  How can they if they are never pushed hard?  With that in mind, I asked several clients who are involved in either banking, asset management or accounting if they could recommend someone equal to if not better than the status quo.  A name that popped up universally is Northland Securities, Inc. 

Another theme I gleaned from these conversations, is there are several ways to handle an issue [bond] of this size.  Most will accomplish the same end, but some will cost the district less money than others.  Which path is a one horse show most likely to take?

Given the circumstances of the current economy, the district should add a third candidate to provide an apples to apples, best shot proposal for handling this transaction.  These proposals should be delivered in a back to back, public forum format.  The proceeding should be televised and if that is not feasible, Skyped so anyone who wants to watch can do so.  Saving $75,000 here; $110,000 there is REAL money!

Why Not A Company Like CPMI?

Before the referendum, we heard how Kraus Anderson was the only game in town due to time constraints and expense.  We were told how they were "the best in the business" and "gave us 10 times the amount of work we paid for generating the estimate."  Gee...you don't think they are going to bend over backwards during the preliminary phase to pump up their shot at grabbing the entire pie without any competition should the referendum pass?  What qualifies anyone on the board to give this assessment?  Is it because KA contributes toward district parties at the Layfayette Club like most of the district's other vendors?  4.0 even describes their generosity on their website: "We have sponsored the "Retiree and Years of Service" banquet at the Lafayette Club."  In prospecting the district's vendors for sponsors of the girls swim & dive fundraiser, they all cited they felt their other contributions to the district were adequate and declined.  Is this the best use of contributed funds to a school district?  What role if any do these contributions play in selecting and retaining district vendors?  Why does the district choose to spend all of this money outside the district--Layfayette is in Orono district?  Isn't it a conflict of interest to spend money at a business where a board member's spouse is the manager?


Enough with the ethics and accounting debate!  Now that the district has secured the bond revenue, don't they owe it to the taxpayers to look at other stewards of our $30,000,000 investment for the best deal possible while providing the most stringent accounting available?  Much like many of us trust Eddie's with our automotive service and repair because he is small, personal, inexpensive, attentive and delivers, CPMI provides many of those same attributes that a Denny Hecker Superstore just can't deliver.  Maybe KA is the most cost effective option out there, but if looking at a second option can save the district just 1% on a project of this magnitude, shouldn't this possibility be explored?

Speaking Of The Mount Olive Polling Place

Minnesota Statute 204B.24 ELECTION JUDGES; OATH. : Each election judge shall sign the following oath before assuming the duties of the office: "I .......... solemnly swear (or affirm) that I will perform the duties of election judge according to law and the best of my ability and will diligently endeavor to prevent fraud, deceit and abuse in conducting this election. I will perform my duties in a fair and impartial manner and not attempt to create an advantage for my party or for any candidate." 


My, how the affidavits continue to roll in....................

Just Today

3 homeowners in our school district were served with notice of sheriff sale.  I think Kevin should take them Thanksgiving dinner and cheer them up by reminding them we have "the lowest school taxes in Hennepin County."

Another Wonderful Example Of Leadership 277 Style

Many people have asked me to keep this sight up and the spotlight on the district at least until every cent of the recently passed bond money is accounted for.  I will try to do so as time allows.  Here is another example of their selective information pandering:


Last week, they released this feel good story.  However, when you hit the link to actually see the audit that incited the wild trumpet blowing in the education center, this part of the audit is conveniently missing:

I realize the page above could confuse a reader who has just received the message the audit was "unqualified or "clean" opinion--the best opinion a district can receive.", but shouldn't the reader have access to the entire audit instead of selective pieces of the audit???


"LARGE..OPEN..ENROLLMENT..LOSSES," detailed by an independent auditor, is something every taxpayer in the district should have an interest in, correct??  Especially given the Shangri-La that was painted during the election and the fact it is raise time for the "big guy."


$1,995,000 is a lot of open enrollment loss in my humble opinion!

Proposed Property Tax For 2012 Statements Are Out

Anyone else living in 277 see their taxes go up in 2012?  This fact was a point of contention between Mr. Borg and the Notch, Mailey and Hejna team.  We felt the voting public had a right to know; before voting for a further tax increase, that a change in MN's property tax logistics which eliminated the Homestead Tax Credit on 12/31/11, would most likely increase property taxes for Westonka residents even before any referendum was passed.  In fact, I delivered this post on September 7, 2011:

http://dreambigwestonka.blogspot.com/2011/09/key-piece-of-information-for-all-voters.html

One of the district's replies:

"As we have discussed, the Omnibus Tax Bill that was approved in the special session includes an obscure provision that will change the tax impact of your bond issue. 

This provision eliminated the homestead credit, which has reduced property taxes every year on homes with values up to $413,000.  In its place, the state changed the calculation of tax capacity on homes with values up to $413,000.  The two changes are intended to keep overall taxes on homes in this range of values approximately the same, all else equal.

In terms of the additional taxes associated with a bond issue, this change will reduce the tax impact of the bond issue for lower valued homes and increase the tax impact for other types of property.

Just yesterday afternoon(8/10), we received a file from the Department of Revenue with updated calculations of tax capacity, which allowed us to recalculate the estimated debt service and tax impact schedules for your proposed bond issue.  I sent you the revised schedules earlier today.  When compared to our previous estimates, the revised figures show slightly lower tax impact for residential homesteads with values of less than $350,000, and slightly higher tax impact for residential homesteads with values above $350,000 and other types of property."

Who out there in 277 land, saw their property tax fall on yesterday's statement??  Anyone??  My tax bill went up 6% overall.  My apologies to Mr. Borg if he believes a 6% increase in one's property--when the assessed value actually fell--is slight!!  Who out there with an assessed value of $350,000 or less saw a decline on their statement??  Anyone??

What is even more strange, is my "School District Total," actually went up 11.3%!!  Still waiting for a reply on that one, Mr. Borg?!  This does not include the cost of the recently passed referendum.  Hang onto your hats, folks when you receive your projections for 2013!!!

Cost Of Student Drain

Finally received some information on the cost to the district when we lose students via open enrollment.  The district will continue to receive all levy dollars, however, the general education aid from the state will be pulled and follow the student to to their new district.  For 2011-12, the amount of the general education aid per student to Westonka, is approximately $5000.  Since Westonka is one of the few districts experiencing enrollment decline, our levy amounts per pupil are now higher than when originally levied due to this attrition.  Where does this money go?

From 1996 to 2011, Westonka's enrollment has fallen by approximately 399 students.  This was during a period of unprecedented population growth within the district's boundaries.  FWIW:  399 x $5000 = $1,995,000 lost in 2011.  Pretty sure that comes to more than $13.50 per month......................

http://dreambigwestonka.blogspot.com/2011/10/campaign-promise-to-you.html

Be careful of what you are voting for today!!!

Can't Bring Yourself To Vote No On The Two Bonds?

The good news is; should the bonds pass, you can protect your large investment by also voting for Hejna, Mailey and Notch!  We will construct a system to account for every penny of this money, be unafraid to challenge vendors for the lowest price and highest quality possible, channel every cent into its intended purpose, and provide you, the voter/taxpayer, with a full, regular public accounting every step of the way.

OR

You too can ponder the meaning of this statement from chairman Botts at the 52:20 minute mark: "....they gave us PROFESSIONAL PLACEHOLDERS for the amount of money that we are PROBABLY going to need to remodel these old buildings.  I'm confident we have enough money to do the job right and THEN SOME SO THAT WE CAN DO A FEW MORE PROJECTS."

So many contradictions............

I'm still trying to figure out how if we have "professional placeholders,"why we have enormous soft cost buffers for over runs PLUS a 6% inflation contingency built into the 'estimate.'

Fifth Most Expensive District At $300k: Anoka-Hennepin

How can anyone with an ounce of business sense; in good conscience, insert this district into their document comparing financials with Westonka district?  Anoka-Hennepin school district, has more high schools then Westonka has schools.  Their web site claims more than 40,000 students.  40,000 students vs. approximately 2250.....yet, their district has just 4 homes assessed at $1,250,000+ compared to 306 in the district with approximately 2250 students.  At $750,000+, it's Anoka-Hennepin 57, Westonka 1067.  So which district is going to see homeowners assessed at $300,000, getting squeezed hardest??

I created a factor for comparing homes assessed at $300k across multiple districts!!  You divide the school tax load of a $300k home, by the number of students in a district, to find out how efficient a district is at using it's money.  Anoka-Hennepin's efficiency factor comes to $.04 or $1479 / 40,000.  Westonka's comes to $.32 or $717 / 2250.  So who is paying more?????

I was going to perform this little analysis for all 21 districts in Kevin & Yes' bar chart, but after the first 5, is it really necessary?

** Property numbers for this comparison come from NorthstarMLS' tax file and are those deemed "Residential" under their plat prop type code.

Fourth Most Expensive District At $300k: Robbinsdale

Compression issues jacking up the load on a $300k home?  Lets see,  Robbinsdale school district has 11 residential properties assessed at $1,250,000+ and Westonka district has 306.

$750,000+??  Robbinsdale district has 87, Westonka district has 1067.

$300,000+??  Robbindale district has 2585, Westonka district has 3239.

Now, do you see one reason why a home assessed at $300k in Robbinsdale SD might carry a heavier tax burden than a $300k home in Westonka SD?

 I created a factor today for comparing homes assessed at $300k across multiple districts!!  You divide the school tax load of a $300k home, by the number of students in a district, to find out how efficient a district is at using it's money.  Robbinsdale's efficiency factor comes to $.15 or $1724 / 11,700.  Westonka's comes to $.32 or $717 / 2250.  So who is paying more?????

** Property numbers for this comparison come from NorthstarMLS' tax file and are those deemed "Residential" under their plat prop type code.

YES Westonka Chief States:

TYPICAL DECEPTIVE TACTICS FROM THE "NO" GROUP

A postcard has been sent to residents of our community by the Committee to Elect Hejna/Mailey/Notch that grossly inflates the cost of the proposed maintenance bonds.

How they came up with the tax amounts they list is unknown.

What is known is exactly what our group has been stating all along:

If all three ballot questions pass, the estimated monthly tax increase will be $13.50 on a $300,000 house. Since the median value of homes in our area is actually much lower than that, most residents will see a much smaller increase.
----------------------------------------------------------------------------------------

Hennepin County Taxpayer Services States:

Hennepin County Taxpayer Services - Property Tax
School Tax Comparison
2011 School Tax on Median Value Homestead
School District		Median Market Value 1
111	Watertown 2	385,000
273	Edina	416,100
272	Eden Prairie	337,500
728	Elk River 2	246,000
883	Rockford 2	309,500
284	Wayzata	344,100
276	Minnetonka	322,750
278	Orono	422,000
282	St Anthony	226,000
877	Buffalo 2	287,000
110	Waconia 2	257,500
270	Hopkins	281,100
879	Delano 2	309,000
281	Robbinsdale	183,000
279	Osseo	215,800
011	Anoka-Hennepin 2	188,000
283	St Louis Park	225,350
271	Bloomington	214,900
001	Minneapolis	192,000
280	Richfield	181,000
277	Westonka	299,000
286	Brooklyn Center	131,200

You be the judge on November 8!!  You decide who is deceptive and if name calling and borderline libel is what you want to back.  Oh, there isn't any "No Group."  This is another figment of someone's imagination!

Third Most Expensive District At $300k: Brooklyn Center

Pssssssst.....just 8 residential properties in all of Brooklyn Center school district are assessed at $300,000 or more.  8 vs. 3239.  Enough said??

** Property numbers for this comparison come from NorthstarMLS' tax file and are those deemed "Residential" under their plat prop type code.

Second Most Expensive District At $300k: St Anthony Village

This will be short!  No homes assessed at $1,250,000 plus in this district.  None at $750,000 plus either.  ZERO at $500,000 plus.  Just 190 residential properties assessed at $300,000 or more in the entire district [282].  This compares with approximately 3239 residential properties assessed at $300,000 plus in Westonka [277].  190 vs 3239.  What does this compression do to the school tax load in St Anthony, relative to Westonka at the hand picked value of $300,000???

** Property numbers for this comparison come from NorthstarMLS' tax file and are those deemed "Residential" under their plat prop type code.

Elk River SD #1 & Fuzzy Numbers

Nice spread in The Laker today [11/5] by YES!  Money well spent?  Hmmmm....  First, Hennepin County told them not to cite the county as the author.  Several others have tried to help them see this is not an apples to apples comparison.  Are you familiar with the Elk River school district?  It's number one in terms of school portion of property tax on a $300,000 house!!  Please take a look and let me know how this district is in any way, shape or form a relative comparison to Westonka?!

I'm going to make it up as I go too!  I created a factor today for comparing homes assessed at $300k across multiple districts!!  You divide the school tax load of a $300k home, by the number of students in a district, to find out how efficient a district is at using it's money--since all things are equal.  Elk River's efficiency factor comes to $.14 or $1830 / 12,708.  Westonka's comes to $.32 or $717 / 2250.  So who is paying more?????

Further, Westonka district has 306 residential properties assessed at $1,250,000 or more.  Elk River district has 5.  Put on your thinking caps and ask yourself, "what this will do to/for the tax load of $300k homes in the respective districts????"  This isn't rocket science.......

Visit often between now and Tuesday as I will break down the other "expensive" districts!  Up next, St Anthony Village.  It can't really be more expensive to do business in the heart of the city......can it?

** Property numbers for this comparison come from NorthstarMLS' tax file and are those deemed "Residential" under their plat prop type code.

Troubling Graph Prepared By A Concerned Parent

The bar graph on the right and the information were prepared and submitted by a concerned district parent who would like all voters to have as much information as possible next Tuesday!

12 years and 8 years??

Why Not Spend $600,000 On Student Retention, AP Course Development or Bringing Back Students That Have Left Westonka?

The more I look into and talk to other district residents about the migration of our students to Minnetonka and Orono etc., the more irritated I become.  I had no clue it was this widespread until I started trying to educate myself to the issues rooted within district culture.  ALL OF YOU know someone who has left--see the numbers in earlier posts.  I have talked to some of the parents, and their kids have NOT left due to facilities!!  Speaking of facilities.......why.........:

Misc Owner costs (Staff and misc needs during the project can be charged to a project if district chooses) – 2%

 

Anyone?  I can't get a reasonable answer from the district as to why the district could possibly need $600,000 loaded into their proposed project to cover "staff and miscellaneous needs" during construction.  $600,000. 

 

Yes, Hejna, Mailey & Notch will get the facilities fixed!

 

No, our plan will not include $600,000 in miscellaneous whatever(s)!

 

Yes, we will work to stop the student exodus from Westonka!