Victoria MN Newspaper

With the Planning Commission recommending something different, Mayor O'Connor stated, "Reasonable people can have a disagreement here."

Agreed Councilmember Crowley, "There are things we can do to facilitate development."

A motion later in the evening of November 12th to approve new design material per upcoming 2013 ordinance amendment passed unanimously. The amendment adds the sentence "other materials recommended by the Planning and approved by the Council" along with brick, natural stone, precast concrete units and block, stucco, and transparent glass.

This sentence allows flexibility to use, for example, horizontal lap siding with maintenance-free painted surface as a primary building material versus an accent material.

SHOULD VICTORIA DECREASE TAX RATE?

COUNCIL TO MAKE THE DECISION IN DECEMBER

"This is the best and clearest presentation I've ever seen," said Councilmember Tom Strigel in regard to the budget update presented by Finance Manager Kelly Grinnell on November 12th.

At the same time that evening, Council did not give specific direction to staff as to which tax rate should be, or would be, adopted at their December 9th council meeting. The city's current tax rate is 39.5%. Kelli was asked to present two other budget scenarios for reduced tax rates of 39% and 38.5%.

"The Finance Committee did review this," said Kelly. "They recommended we stay at the 39.5% tax rate." There's a new element coming online faster than anticipated. The city will most likely need an additional water tower for 2015. Its location is being proposed for the Ambergate property.

The Finance Committee is comprised of Mayor Tom O'Connor Councilmember Lani Basa, Victoria residents Greg Evansky and Tom Vogt, City Administrator Don Uram, and Finance Manager Kelly Grinnell.

Reduction in the city's tax rate would mean cuts in proposed 2014 expenditures under the current preliminary levy. If the tax rate were reduced to 39%, she said, "we could eliminate the proposed Park Programmer position ($64,000) but it would not impact the current 2013 level of services."

If the tax rate were further reduced to 38.5%, she said, "we could also reduce HR services ($15,000) and we could eliminate the proposed half-time office assistant ($17,000) and reduce the long-term street maintenance fund ($8,000).

If all of the above cuts were made, total city expenditures would be reduced by $104,000. Kelly said the tax impact to residents on a median value home ($306,900) would be $1,156 (taxes payable in 2013), $1,174 (remaining witth current preliminary levy at 39.5% for 2014), $1,157 (reducing tax rate to 39% for 2014), and $1,145 (reducing tax rate to 38.5% for 2014).

Said Mayor Tom O'Connor, "I'd like to not run the risk of reducing our level of service."

Asked Councilmember Joe Pavelko, "What can we tell residents if they ask what are we getting for the tax increase?"

Replied the finance manager, "That we can continue our services to you and should be able to do a better job snowplowing the roads."

Said Councilmember Pavelko, "I think the 1% decrease is do-able. It makes sense for Victoria to not follow the masses."

Councilmember Jim Crowley recalled that Victoria's tax rate was originally raised because home values went down in the poor economy, and that it could decrease when home values go back up. In 2010 and 2011, the tax rate was 37.4%

Said Councilmember Lani Basa, "I am not so sure we're out of recession. Is a 1% reduction so wise? I am cautious about going all the way down to 1%. Where are we if people stop buying? I want to make sure we're optimistically cautious."

"So what is the council's preference," asked Kelly.

Replied Mayor O'Connor, "This is a pretty significant event. You better come prepared in December to go either way. You better come with two resolutions for us to consider." A tax rate of 39%, for example, means that a tax of $3.90 is paid per $1,000 in property valuation.

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