Which government? The city government is broke. If they merge, the larger city could pay for transitioning costs, but that would be a massive cost (worth it, possibly!) and politically difficult.
I don't think it would be fair if the city paid for it. The direct cost would go to them and the direct benefit to others.
In that situation, the problem has to be solved on the level above. The State as a whole should pay the cost, since it is the State as a whole that would benefit.
In that situation, the problem has to be solved on the level above. The State as a whole should pay the cost, since it is the State as a whole that would benefit.