Victoria MN Newspaper

CONTINUED: STAYING ON TRACK

Continued the Mayor, "The more costly approach, which is what we've assumed we'd do all along, amounts to about $30/year in taxes per household. We're going to go forward with these buildings. If we have to, make no mistake, we'll do the Lease Revenue Bonds. It's a common vehicle and used where necessary. Some decisions should not be left to a popular vote but made by elected officials."

Said Councilmember Strigel, "There's agreement about the buildings being needed, but not how to pay for them. 'They' want us to pay cash." He said the city doesn't have the cash and more costs would be added by delaying construction. "It all defies understanding," he said.

Councilmember Jim Crowley spoke to the original cause for the individual being opposed to the city: "We have an individual who is upset because some time ago we were going to approve sideyard setbacks in his neighborhood of 7.5 feet ... but we didn't. We approved 10 feet, our standard."

Said the city attorney, "Time is money, as you know. There are legal costs for following two different paths [CIP Bonds and Lease Revenue Bonds]. We will have to adjust the schedule to accommodate both." He added there is also cost to resolve a referendum and delays.

The workshop ended with agreement that the accepted solution to finance the buildings is to start down the path of using Capital Improvement Bonds, and if problems are encountered, the city will switch to using the more expensive Lease Revenue Bonds.

Jan. 27th Council Meeting

The city attorney, Mike Norton, said he'll check into the dual path, as discussed at the previous workshop, regarding financing the buildings costs. "If there's an issue, I'll let you know," he said.

Stated Mayor O'Connor, "If we end up with the more costly approach, we were forced into it."

Said Councilmember Strigel, "It is our responsibility to get the building built and with the most cost efficient approach."

"I'm in favor of the Capital Improvement Bonds, not the Lease Revenue Bonds," said Councilmember Joe Pavelko.

Councilmember Crowley suggested his colleague therefore speak to those who might be threatening a petition and reverse referendum that would lead to a more costly scenario for Victoria taxpayers.

Councilmember Lani Basa referenced Councilmember Crowley's thoughts from the workshop to wrap the limestone rock accent around the perimeter of the entire new City Hall building. Added Councilmember Crowley, "It costs an extra $15,000 to $20,000. Every dollar counts, but this is worth it."

Agreed Councilmember Strigel, "It fulfills the number one comment I heard at the Open House, to ensure the building is attractive from all sides."

Stated Mr. Uram, "We will direct the architects to proceed with that."

Other questions were answered at the Open House on January 16th. See pages 16 and 17 in this issue of the Gazette for more information.

WORKSHOP ON NEW CITY BUILDINGS

THE LAST COUNCIL GATHERING OF 2013

Council held a workshop on December 23rd, just two days before Christmas, at which time they reviewed the overall project costs of the new City Hall and Public Works facility.

According to minutes from the 2013 workshop, current cost estimate was $5.5 million for the two buildings, which is a half million above the budgeted amount.

Several cuts were already made, said City Engineer Cara Geheren, including design costs, driveway widths, the elimination of all exterior concrete, reduced landscaping, and reduced site grading. These items totaled $278,000.

It was reported that square footage of the Public Works building was being considered, though not recommended by Public Works Director Ann Mahnke. Also being considered in order to meet the $5 million budget is parking some equipment outside.

Cuts were also discussed in regard to the design of City Hall, reduction in building size by 1,000 square feet, and eliminating landscaping.

Finance Manager Kelly Grinnell reported that if Council allowed the budget of $5.5 million to remain, the city's tax rate would be 38.2% to 38.3%. If the budget can be kept at $5 million, the tax levy can be kept under 38%.

Nobody wanted to reduce the size of City Hall. Other cuts would be sought. The workshop lasted over two hours. An Open House for the public was scheduled for Thursday, January 16th, in the City Council Chambers on Rose Street.

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