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The Victoria Lions We Serve.

Weddings, Proms, All Formal Occasions

Waconia 952-442-6383

Crossroads Medical Centers, P.A.

Chaska 448-2050

Shakopee 496-6700 Prior Lake 447-1700

St. Bonifacius * 952-446-1338

Holy Family Catholic High School

Victoria * 952-443-4659

BID AWARDED FOR BAYCLIFFE PROJECT

CITY OF VICTORIA RECEIVED NINE BIDS

Council adopted the final assessment roll for the Baycliffe neighborhood area street and drainage improvements on July 24th. Those on the private drive will be assessed $4,615. Others in the neighborhood will be assessed $16,848. No resident filed an objection or spoke to the issue at the hearing.

Councilmember Kim Roden thanked City Engineer Cara Geheren and the Baycliffe neighbors for working together to keep project costs as low as possible.

Also on July 24th Council awarded the project to Wm Mueller and Sons with the bid of $675,233. The city engineer said that GMH Asphalt’s bid of $673,233 was in fact determined to not be the low bid because the city’s specifications had called for 100% fresh clean class five aggregate and not reclaimed on-site material.

Said Cara, “We determined they are not the lowest responsible bidder. I recommend Wm Muller and Sons as being the lowest responsible bidder. I’ve had extensive experience with them.”

Councilmember Jim Paulsen pointed out that the four lowest bids were within 2% of each other. The city received nine bids for the project. The city engineer’s estimate was $684,863.

ESTIMATING VICTORIA’S 2009 BUDGET

PLANS TO ESTABLISH STABILIZATION FUND

Council held a budget workshop on Thursday, July 24th, to look at preliminary numbers and projections for the 2009 budget for the City of Victoria. At the end of review and discussion, Councilmember Jim Paulsen concluded, “I think the sense of the Council is that we’re going in the right direction.”

City Administrator Don Uram said the city portion of property taxes could be increasing by $9 per home in 2009. He pointed out the establishment of a Stabilization Fund for surplus revenues to cover revenue shortfalls for anything affecting the healthy, safety, and welfare of residents and to avoid making drastic cuts in a downturn of the economy.

He said, “The ideal position for governments is to balance resources and results.” As the new city administrator, he pointed out four principles of the budget process including establishing broad goals, developing specific approaches to those goals, recognizing restraints of available resources, and continually evaluating and adjusting along the way.

The 2008 levy was $4,138,699. It is estimated to become $4,491,803 in 2009 which is a 8.53% increase.

City Finance Director Jylan Johnson said staff is recommending that the city impose the maximum levy limit for 2009, anticipating decline in rate of growth in number of households. She said the median assessed value of a home in Victoria has increased from $366,800 in 2008 to $369,200 for 2009, which is less than 1%.

Jylan pointed out that the Field House Levy is projected to decrease from $515,306 to $326,000 “primarily due to the agreement with School District 112.” This is a 37% reduction. Lease payments from the school district total $400,000 and will increase annually by 2%. Staff recommendation is to establish a Field House fund balance of $133,000 to plan for unexpected expenses. Staff also recommends saving dollars to help finance a new City Hall as needed in the future.

She said that city property taxes for 2009 will account for 87% of the total General Fund operating revenues, that building permits and fees (based on 35 single family home permits for 2009) account for 5% of the projected total budget, and other sources such as user fees account for the remaining 8% of budgeted revenues.

Overall expenditures are expected to increase by $345,770 or 9% from 2008 to 2009. Anticipated total for 2009: $4,138,582. The 3.25% increase in employee wages and benefits accounts for $43,000 of that total.

Asked Councilmember Jim Paulsen, “Have we got too much debt and should we be cutting our expenses?”

Replied Administrator Uram, “That’s something we can evaluate ... We’re pretty low compared to what other cities spend on people.”

Said Councilmember Kim Roden, “We continue to have growth but we need all these services. We have the expenses of a growing community. I wouldn’t say we’re in the worst place; we’re not. But we have some limitations. I’d hate to see us back ourselves into a corner by not levying the maximum. I would argue not paying off our debt right now because we have a pause in building activity, but maybe within the next 36 months. We’ll be realizing the benefit of partnering with School District 112.”

Asked Councilmember Paulsen, “When will the spending curve flatten?”

Replied Administrator Uram, “It’s related to what we need to levy to maintain what we’re doing. It could be years. We’re projected to be the largest city in Carver County.”

Councilmember Roden pointed out that the city budgets these past four years included costs for infrastructure and the reconstruction of roads.

Mayor Mary Thun asked that the city administrator summarize in general, “the biggies” for 2009.

Click here to continue City Budget Conversation.