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? Because someone wants a new boat?
ReplyDeleteIt's amazing how many unsubstantiated accusations of fraud, theft, criminal activity, etc. get made both implicitly in the blog posts and explicitly by commenters on this site. I wonder why your message didn't resonate with the majority of the voters?
ReplyDeleteWhere have I made any such allegation? Where? Seeking competitive bids and continuously looking for more cost effective or [better] vendors, is just sound business principle; something the "crew" doesn't have a clue about. If the "crew" had the welfare of the district in their hearts, they would be all over my suggestion!
ReplyDeleteThe majority of the voters didn't vote, my child! Hello....anyone home? This was an odd year election--just the way the "crew" wants it and has fought tooth & nail to maintain.
Where? See comment 1 by "kickbacks R cool", which went unchallenged by you. Comments like these are common here.
ReplyDeleteI'm not a child. Odd year elections still count.
Can't keep track of what you said? You said [I] was making those accusations in blog posts. Again, where??
ReplyDeleteUnchallenged? lol What am I? The hall monitor? People can speak freely here unlike at school board meetings.
Comments like these are common here? I wonder why that is??
Odd year elections still count. Don't I know it.....and so does the "crew!"
Ha, you respond to EVERY comment that is against you, usually in quick order. So you make a post about "cronies", a commenter responds talking about kickbacks and new boats, and you don't respond. Hence "implicit". The 11/21 post has three comments using "criminal court", "election scam" and "criminal charges"; crickets from you. Yes, you are the hall monitor. This is your blog.
ReplyDeleteOf course I respond when people comment about me; especially when the comments not true.
ReplyDeleteSo my silence equals "implicit?" Interesting, but wrong. Anyone can post here and anyone can have contribution/admin privlidges.
Maybe I should just go Bott's and snort and shout and bawl and tell everyone to, "SHUT UP!" lol
You never answered why you think so many people post here about distrusting the "crew?"
So you're obviously not interested in honest debate, otherwise you'd call out nonsense about criminal activity. You honestly don't think you have any responsibility about keeping the discussion on your blog in the realm of reality? Or at least ask that such accusations be substantiated?
ReplyDeleteI don't doubt that the "crew" has credibility problems with a large bloc of voters. I think you raise many important issues. However, your "crew" was thoroughly defeated in the election, excuses about odd-year elections notwithstanding. I doubt that the mud slinging that occurs on this blog and the comments section is doing you any favors.
Well let's get the [honest] debate started! TOPIC: Why or why not will the district benefit financially by forcing multiple underwriters to compete for its business??
ReplyDeleteNo, Eric, I have no responsibility to moinitor, edit or control the conversation on this blog whatsoever. I don't play Oz like some editors do! You still have not answered why so many people are idicating these "negativities?" Are they delusional? If you think the posts on here are bad, you should read some of the emails I receive! When I can't even get a reply from Mr Borg to a simple question or suggestion concerning finances, I tend to understand why there is a culture of distrust. Its not my job to manage that culture--given the exodus from 277, it would seem it is no ones job!
"Large block of voters?" You seem to keep "implying" the election was some sort of blow out?? Given the fact the "crew" had every card in the deck---and then some---I am embarassed for them that it was as close as it was.
The odd year "phenomenon" of attracting lower voter turnout is easily researchable. Going to an even year format would save the district money as well; but saving money is not really in vogue with the "crew," is it?
Again, you assert that I am slinging mud. Please provide an example or......
Doing me favors??? Favors in what regard?? I didn't start this process to curry favor. It is interesting how people who have never given me a business referral, threatened to never give me a business referral if I "aligned" myself with Tom Notch. lol Conversely, I have already received business and increased my contact base as a result of running [for school board] and yes this blog. For some people, there is an attraction to working with someone who tells it like it is, thinks it through and is not afraid to hide in the closet. I would venture a guess I get more blog hits than a certain newspaper's web site does.........
Of course a competitive process would be best. I honestly have no idea how the district chooses the underwriter. You suggest it's cronyism, commenter #1 suggests it's kickbacks. I suggest that without evidence it's irresponsible to make such accusations. I'm not saying that you should edit or delete comments, but I don't think it's unreasonable, given your history of replying to comments, to think that you could keep a civil tone to the discussion. (Unless you or somebody else has evidence of illegal activity, in which case you should blow the whistle.)
ReplyDeleteTo answer your question about the "negativities", some of those people are delusional, as evidenced by some of the comments to this blog. I would imagine that for most the sentiment is genuine. Again, I agree that there are issues in the district. But there's also the inconvenient results to the last election. I'm well aware of the odd-year phenomenon. However, I don't know how you can argue, on the one hand, that there is a pervasive feeling of mistrust towards the "crew", and on the other hand argue that a disproportionate number of your supporters sat out the election. (BTW, if you look at the numbers from the 2007 election you'll see that there was a similar number of votes cast for school board, and Mr. Notch won his seat by 14 votes. Do you question the voter mandate in that election, too?)
By 'favor' I mean influencing others to your ways of thinking, not business favors.
Mudslinging example: You recently made an incoherent post about sheriff sales, Mr. Borg and Thanksgiving dinner. I'm not sure what the point was other than mudslinging. You continue to bring up foreclosures. Perhaps you could clarify this.
Why won't Mr Borg reply to the question to this blog post as it was posed to him? He should be eagar to, if all is above board, don't you think? No matter how you slice it, taking vendor "donations" and throwing a party with those funds is WRONG. What would you call that if not a kickback?
ReplyDeleteAre you a trained mental health professional or do you have solid evidence that their claims are untrue? Gee....was there a conserted, teachers' union-backed 'YES' frenzy complete with cheezy YouTubes and election officials telling people how to vote in 2007?
That is an example of mudslinging? lol You need to grow a thicker layer of skin if that offended your tender sensitivities. It is/was tiresome to listen to the BS all summer from a group of people who had no idea what they were talking about; who yammered and stammered about lowest taxes, pennies per day, anyone can afford, etc etc etc. When multiple people in this district are receiving Notice of Sheriff Sale each week, it demonstates again how the "crew" will say anything and do anything to win.
Early this fall, I tried to tell Mr Borg taxes would be going up in our district--due to the new property tax legistlation--even before any new referendums were added. Mr Borg disagreed and provided me with insight from Ehlers. For those of you who saw your taxes skyrocket, how do you feel about the advise provided by the district's designated financial advisor:
ReplyDeleteDon,
1. 2011 Tax Bill. 2011 Tax Bill (elimination of the Market Value Homestead Credit and creation of a new “homestead market value exclusion” for calculation of net tax capacity) was passed in the special session in July. What I have communicated is a forward from Joel Sutter, Executive Vice President with Ehlers, on how this bill impacted the proposed levy and bond questions. I shared with our board that "When compared to our previous estimates, the revised figures show slightly lower tax impact of 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."
Our tax chart for the proposed bond and levy represent the changes in the bill. This chart is located on our website.
As far as how this bill impacts Westonka residents outside of the proposed levy and bond questions would be difficult to estimate. Joel said "The exact impact on any property owner will depend on a number of factors, including the type of property ,the market value of the property, the change in market value from 2010 to 2011, and decisions made on tax levies by each taxing unit (school district, city, county, and special taxing jurisdictions). The impact on taxes in the Westonka School District, however, is likely to be much less than in other school districts and other parts of the state. While the state total NTC decreased by 4.73% because of the shift, the NTC of your district decreased by only 1.76%, since lower valued homes make up a relatively small percentage of your district’s tax capacity. So tax rate increases (and increases in tax bills for individual properties) are likely to be much smaller in your district than the state average."
2. Print out of Donations. Megan, our Finance Director, is shared with another district and is doing their audit at this time. She will have this printed out and ready for you to pick up by the beginning of next week. We will email you when this is ready.
Kevin
Kevin Borg, Superintendent
Westonka Public Schools
5901 Sunnyfield Road
Minnetrista, MN 55364
952-491-8001
www.westonka.k12.mn.us
The Westonka Edge: Small School Advantages, Big School Opportunities, Real-Life Success Stories
"Likely to be much smaller in your district than the state average?" What was the "state average?" 17%?? lol
ReplyDeleteI will give them credit for their word choice, e.g. "likely!" I hope it is, "likely" they provide us the best possible management of our $30,000,000!
ReplyDeleteI can only imagine the look I would draw from a client asking if they had purchased their home for a good price and I replied, "it is likely that you did!"
I did tell Mr Borg that it was "certain" our taxes where going up due to the change in the tax law; given the composition of the property inventory within the district.
@12/2 9:05 The fact that it is mudslinging has nothing to do with my sensibilities. It's simply a description of your negative campaigning style.
ReplyDelete@12/3 1:13 Would you mind posting the email you sent to Mr. Borg, in which you describe the implications of the tax law change?
"Negative campaigning" is like pointing out a house is a POS to get a lower price for a client is "negative negotiating?" Sorry, some facts and realities are negative.
ReplyDeleteThere are several, but here is one of my favorites:
[Homestead Abatement] Wed 9/14/2011 7:30 AM
Kevin,
Since this news started to circulate a couple of weeks ago, a few people in the community have contacted me and mentioned the district’s position is; there will be zero affect or a property tax reduction for most homeowners in 277? Unless the district has surveyed the various municipalities that it serves about their budget designs for 2012, and have hard numbers, there is no way anyone should be making this claim.
{The two said Minnesotans are only now realizing the change after state leaders finalized a last-minute budget deal to end the 20-day government shutdown. They revealed the proposal as local governments around the state are finalizing their levies and preparing to mail property tax bills, which could show steep increases.}
As the recent article below points out, it is too early for anyone to make a blanket statement about property taxes going in either direction:
http://www.startribune.com/politics/statelocal/129769163.html
"The exclusion is a delusion," said Lenczewski, DFL-Bloomington.
She said the change amounts to a tax hike. "It's not a cut. It's not a shift. It's a tax increase."
It is my understanding, that a big part of the “shift” will be directed toward commercial and industrial property. It doesn’t take a lot of reflection on the composition of property types in the cities represented by the district, to know what that means. Every taxpayer; regardless of their position on the referendum, deserves accurate and precise information on which to balance their decisions.
Take care,
Don Mailey
RE/MAX Results
(952) 212-0968
Don@DonMailey.com
From here on out, lets focus on why Ehlers is untouchable, shall we? That is, if the expection of fair bid driven down by competition isn't too mean, wicked, nasty or negative.......
Nice email Mr. Mailey. I believe the Borg apologist in the boat owes you an apology. Mr Mailey has represented my in the purchase of foreclosed property and the purchase of sheriff certificates. In observing him navigate these complicated transactions, I have seen him come out on top of business people who were infinitely smarter than Mr. Borg. You people would be well served to listen to what he tells you.
ReplyDeleteWell, I guess I wouldn't expect you to acknowledge the snarky tone of this blog as being negative or mudslinging. Depending on how you typically consume your news you might think it's just normal discourse. So I'll move on.
ReplyDeleteWho said that there would be a tax reduction? Can you paste an email or give me a link for that one?
Ehlers stated that they believed the tax law change would likely have less of an impact in the district compared to other districts because the NTC reduction in the district was less than that of the state as a whole. Is this illogical? You even stated in your email that "it is too early for anyone to make a blanket statement about property taxes going in either direction."
In what regard are you asserting that Ehlers untouchable?
@Florida Keys Guy: Sounds like "my dad could beat up your dad!" "Infinitely smarter than Mr. Borg"? Is this what passes for informed debate these days?
Thank you for the kind words, "FKG!" Not too hard for me to figure out who you are. :) Lets do some Bushmill's again before the year is out!
ReplyDelete------------------------------------------------
4:56,
Ehlers is untouchable because they have a monoply on the district's bond underwriting business and will not be forced to compete for the upcoming bond issues. I will post a ridiculous reply I received from Mr Borg in an attempt to justify this status for Ehlers.
As for the rest of your drivel, I am done responding to it. If you want emails from me, leave your address and I will CC you when I email Mr Borg and FWD you everything I have sent to him.
Ha, okay, fair enough. The conversation wasn't going anywhere, anyways. You should probably get back to your handwaving and name calling with another post. I guess I'll look forward to seeing the email from Mr. Borg on Ehlers then.
ReplyDeleteGood luck with your crusade on this blog.
^^^^^^^^^^^ has to be kevin's mom or wife.
ReplyDeleteYup, no one is paying attention to this blog. No one is interested in what is posted here:
ReplyDeleteAs of 8:15 AM 12/8/11
Blog visits today
27
Blog visits yesterday
69
Blog visits last month
1910
Blog visits all time history
4,518
Yup.....it's a one man crusade and no one is paying attention! lol
Is this an acceptable reply as to why Ehlers is seemingly untouchable:
ReplyDeleteDon,
The district interviewed firms about 2 and 1/2 years ago. One the firms that we interviewed was Northland Securities. After the interviews, the Finance Committee approved to stay with Ehlers.
We will continue to monitor companies that we use for competitive service and pricing.
Kevin
Kevin Borg, Superintendent
Westonka Public Schools
5901 Sunnyfield Road
Minnetrista, MN 55364
952-491-8001
So in 2009, finance commitee members interviewed these "competitors" and decided Ehlers is the bomb forever more????? In 2012, we will be raising $30,000,000 via a complicated--and expensive--financial process and based on a three year old interview, we won't look at a second or third opinion? Wow....
Here is my reply:
Kevin,
Who were the members of the finance committee that interviewed these firms 2.5 years ago? Are they all still on the board? Since I don’t live in a vacuum, I would be interested in asking them their opinions in 2011.
If their/your conviction to exclusively use Ehlers is this firm, surely a policy was created? Please email me this policy at your convenience.
I look forward to receiving the names of the finance committee members who conducted these interviews in early 2009!
Take care,
Don Mailey
RE/MAX Results
(952) 212-0968
Don@DonMailey.com
Gee, I wish all my buyer clients insisted on looking at and offering full price on just one home! No more digging up pesky comparables and beating down the listing agent!! Wait...no I don't...that is how I justify getting paid; doing the best job possible and striking the best deal conceivable for my clients.
Ha, so you have a handful of people lurking and every now and then get some high-fives from guys like Florida Keys Guy. (Are the blog visit stats for unique IP addresses?)
ReplyDelete@Anon 12/8 7:13... I did chuckle when I read this. Anybody who disagrees with the "infinitely smart" Mr. Mailey must be Borg's mom, right?
In all seriousness, this is all just a lot of hot air. I don't know how you think that these emails from Mr. Borg are incriminating. It seems like a pretty normal vendor selection process, based on my experience in the private sector (the gold-standard in your world).
So to keep your realtor analogy going, do you try to stick it to your long-time clients? I'd think that at some point they'd become complacent and you could take advantage of them. Can I assume that all of your lasting client relationships are the result of cronyism, deception, kickbacks, etc.?
Oh yes, I'm sure 3 people have been here 1500 x each. Of course with you hanging around here, it be just 2 with a breakdown of 4100/418.
ReplyDeletePlease cap [Realtor] is all futures usage.
I never said they were incriminating. Inept and ignorant yes.
My client relationships are not financed with tax dollars and you can see my client feedback journal any time you like.
I know I said I would not reply to you any more, but in much the same way I can't turn my back on a songbird with a broken wing; I can't leave a confused soul flounder in the sea of confusion. This IS the last time I attempt to repair your tattered sail for you!
I never said 2 or 3 visitors, but never mind that. I'm suggesting that the actual number of people reading the blog is something less than the gross hit stats you posted. (If in fact they are gross.)
ReplyDeleteThanks for correcting my lower case 'r', I didn't realize it was a trademarked name. But I hardly think you want to get into the habit of correcting grammar.
It's hilarious that you think you're "repairing my tattered sail." Repairing from what? I'm just trying to get a reasoned argument out of you. But I guess since you're done responding I'll just keep floundering.
Have you forced kevin to grasp the concept bidding or is he still hoping for a Christmas bonus?
ReplyDeleteI'm not sure yet. Getting Kevin to admit this is the right thing to do for all concerned is harder than taking a shiny new tricycle away from a 6 year old on Christmas morning. As for a bonus, I would say a lump of coal would suffice!
ReplyDeleteDoes this clod really think he is fooling anyone? What possible excuses is he giving that don't come off as total bullcrap?
ReplyDeleteYo anonymous - the simple fact remains that Bork cannot answer without beating around the bush. He has yet to be completely forthcoming and honest about Ehlers. Can you not see that? Maybe you should get off the "I love Kevin" bandwagon and open your friggin eyes. The taxpayers have been ripped a good one here. Don, Tom, Nick, Cindy and a whole boatload of others can see that and it's disgusting to hear idiots like you stand up for the crap that they pulled.
ReplyDeleteKB, just answer the freaking question honestly. This entire exercise is making you look like a giant D-bag from westonka to St Paul.
ReplyDeleteMN Office of the State Auditor says, "The formal process of bidding serves several public objectives. Certainly one objective is to
ReplyDeleteobtain the lowest price, but another important goal of bidding is the opportunity it allows
qualified entities to obtain public business in an open process."
Don,
ReplyDeleteThe review cycle was conducted at the appropriate interval in anticipation of our bonding cycle. Further reviews will be conducted as dictated by the board and finance committee. It is not an appropriate time to conduct another review and all further discussion on the subject will be conducted at those levels. The fees charged by Ehler's are competitive and their advice has been professional and satisfactory.
I wish you and your family a Merry Christmas and a Happy new Year.
Dave Botts
Translation:
Anyone else wanna give it a shot?
To me, it says, Ehlers was designated {BEFORE} the referrendum passed and there will be {NO} solicitation of further bids from anyone.
Is a "review" the same as receiving a competitive bid on a specific project?
Then we have this gobbledygook:
ReplyDeleteDon,
Attached is the report from the Office of the State Auditor(OSA) that you made reference to. On page 8 and 9 they address the topic of bidding out of professional services. In this section, they recommend that district's "periodically review" who they use for professional services. Westonka did this review in August of 2009. We feel that our practices are within the recommended guidelines. Ehler's has been involved(answering questions and providing tax impact scenarios) with this bond project since fall of 2010. Again, the School Board Finance Committee determined that we should use Ehler's (one of three firms that were evaluated in 2009).
Kevin
Kevin Borg, Superintendent
Westonka Public Schools
5901 Sunnyfield Road
Minnetrista, MN 55364
952-491-8001
I guess he/they just don't get the concept of soliciting competitive bids on a {FUTURE} $40,000,000+ underwriting.
It's not a past review.
It's not something a now defunct finance commitee said.
It's not an evaluation.
It's not a reward for past services rendered.
It's leveraging the best possible deal from competitive bidders to save $thousands of dollars$ for {THE SCHOOL DISTRICT}!
Let me see if I can get my head around this? You have David Botts, a guy who can't even manage a simple household budget and make his mortgage payments on time, trying to brow beat you over finance? Which is tougher, making a monthly house payment or figuring out a multi-million dollar budget? Then you have Borg piping in like he knows what day is when it's a wonder how he finds his way to work in the morning. Talk about the blind leading the blind, or is it Denny Hecker leading Bernie Madoff? You need to get this virol so more people can be amused and informed.
ReplyDeleteAfter cheating their asses off to get the board stacked with rubberstampers, these fools must have thought they were pretty smart. Looks like all they did was raise an army of red flags and pump up the scrutiny. I for one want someone to get to the bottom of these annointed providers. This practice is costing us money and we deserve to know why!
ReplyDeleteYour questions to the district are receiving responses that any reasonable person would regard as adequate, but since they aren't the answers that suit your current jihad you moronically soldier on. I guess everyone needs a reason to get up in the morning. I've seen some sore losers in my day but you take the cake, Mailey.
ReplyDeleteAnonymousJan 19, 2012 07:51 PM,
ReplyDeleteThat's pretty funny, Einstein, considering I have received "responses" to about 2% of what I have asked. Even a non-moron would'nt consider those "responses" as answers; so you are definitely on track with your word choice, even if the issues are too complex for your bonet.
Here's a tip: Better to go through life a moron than an Anonymous Coward!
Now, run along and play with your shiney new Westonka diaper bag while the grownups try to figure out how to stop the exodus to Orono and and the continued waste of district funds. After all, the district can't just pull a strategic foreclosure when the going get's tough..........
Yo Anonymous,
ReplyDeleteNone of the responses given by the idiot clowns Borg and Dumbotts are anywhere close to being honest and forthcoming. Adequate? HA! Maybe you need to take a trip to Websters and figure out what adequate means. They have lied, presented false numbers and have been a disgrace to the community. You must be related to one of the clowns or a totally uninformed citizen.
Jan19/Keith, don't come here and call people names without signing your own name. "Be a man" and sign! Isn't "be a man" your famous line? Be a man and practice what you preach.
ReplyDeleteLooks like the district is taking a page from the soros-obama playbook and sending paid posters to defecate all over blogs where the contributors don't think the way they do.
ReplyDeleteHey spittin, sputterin, screamin keith, if you don't like looking at losers, I would suggest removing all the mirrors from your home.
ReplyDelete