City of Delafield - The Common Council is expected to begin deliberations
Monday on a proposal to levy $450,000 in water main special assessments on agricultural land that, according to its owner, may never be developed.
Another $234,000 in special assessments may take years to collect because it is also based on the assumption that farm land located in the northeast quadrant of the city will be developed, according to city officials.
City Engineer Mike Court of Yaggy Colby Associates said the land can be assessed because according to the city's master plan it will eventually be developed.
The proposal, described as "speculative financing" by one alderperson, is part of a financial plan intended to help reimburse the water and utility funds for the costs of a controversial $4.1 million water main that was installed last year along Highway 83 between Interstate 94 and Highway 16.
The city paid for the water main by borrowing about $2.5 million dollars in 2005 and contributing another $1.5 million sewer and water utility reserve funds.
The city will recoup about $2 million over a period of years through development agreements with the Village Square shopping center, Oakwood Church, and developers of the Geason Family Farm along Highway 83.
The city anticipates levying special assessments against other existing commercial properties along the highway in addition to about $900,000 from the owners of undeveloped farm land.
However, local farmer David Morris said he told city officials last year that he does not intend to develop about 120 acres of land he owns and it will be five to six years before a decision is made regarding another 80 acres of agricultural land owned by his family estate.
Mayor Ed McAleer said the Common Council must either adopt the special assessment proposal or find an other alternative for reimbursing the utility funds.
"All of this should have been discussed and decided before the pipe was put into the ground. Now, the city is between a rock and a hard spot," McAleer said.
However, Alderwoman Beth Leonard said owners of agricultural land should not be specially assessed to help pay for the pipe line proposed by former City Administrator Matt Carlson to serve the shopping center, future developments, and reduce radium in a city well.
"One of the reasons I was opposed to Matt Carlson's water pipe was because the city didn't have a clue how it was going to pay for it," Leonard said.