Victoria MN Newspaper

BUILDING PERMIT FEES INCREASE

VICTORIA HELD THE LINE FOR SEVEN YEARS

Council voted 3-1 on July 14th to approve an amended fee schedule that raises building permit fees in the City of Victoria. Councilmember Joe Pavelko, who cast the nay vote, had said, "The increases are rather high. I'd like to see them stay flat. How do we compare to other cities?"

Replied Finance Manager Kelly Grinnell, "The city has been using the same structure since 20007. Ideally, you look at the fee schedule every year, but with the economy changing in 2008, we decided to let that go. We are significantly lower than other communities."

She pointed out, for example, that according to the State Department of Labor and Industry, the building permit fee on living space ranges from $98 to $126 per square foot. Victoria's is $77.

She said most increases are not great. For example, a deck permit would go from $11 to $18. A porch permit would go from $26 to $38.

"There is no obligation to follow the guidelines," said Kelly. "But we are currently spending more than we are taking in." The city has labor costs related to issuing permits, building inspections, and some material costs as well.

She added, "By far the major increase is for new home permits. Close to 70% of permit fees are for new homes."

Said Mayor Tom O'Connor, "We either have a service that's too costly or we have to raise our fees."

Councilmember Tom Strigel didn't support playing catchup after seven years, but did add, "I'm actually a fairly big fan of pay for what you use."

PLANNING FOR 90 NEW HOMES IN 2015

AS CITY OF VICTORIA PREPARES FOR NEW BUDGET

In preparing the preliminary city budget for 2015, Finance Manager Kelly Grinnell reported on July 28th that it will reflect income from 90 new home permits rather than 75.

Also, in 2015, the City of Victoria will not be required to make a contribution to the Fire Department pension fund. And the city will transfer $300,000 for the long term street maintenance fund.

"The proposed General Fund levy has dropped," she said. "Essentially it's a flat levy."

She said that a 14% increase in market value is predicted for most homes, and that a median value home in Victoria may see a $15 increase in city taxes. "This budget is based on maintaining current budget levels," said Kelly, adding that the city may be looking at hiring a full time Fire Chief.

The proposed preliminary budget will be reviewed at a council workshop on September 8th. It must be adopted by September 22nd and certified to the county by September 30th, which is a change from the usual September 15th certification date.

Staff will be putting out an email to the department heads in order to prepare now for future capital improvements.

VICTORIA CITY HALL/LIBRARY UPDATE

PAY REQUESTS AND CHANGE ORDERS BEGIN

Construction began on the new Victoria City Hall/Library project on Stieger Lake Lane in mid June. The project was approved on April 14th, 2014. It is located on Stieger Lake Lane, immediately adjacent to the completed Lakeside Building.

July 14th

"That large structure erected there is the shaft for the elevator," reported City Engineer Cara Geheren. "There were some delays due to weather and the permitting process. There has been external site work. The footings are laid. We're generally off on a good starting basis, but it looks like we're a month behind schedule, which puts us at more of a December 1st completion time frame. The target move for us is between Christmas and New Year's. We're looking at items and furnishings that need to be purchased. The project is still within budget as far as we know."

Council approved pay request number one in the amount of $145,466 to four contractors on the project. This represents 8% of the current total contract amount of $1,886, 907.

July 28th

Council approved Change Order No. 1 on the new City Hall project which increased the contract amount by $14,658 and extended contract by ten days. There were modifications needed to the foundation system and elevator pit footings. Said Cara on July 28th, "The steel columns should be erected next week. We're still on track to move into the building between Christmas and New Year's."

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