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PUTTING THE RIBBON ON A LOT OF WORK

FOR THE CITY OF VICTORIA 2011 BUDGET

Before Victoria City Councilmembers approved the final 2011 tax levy and the final numbers for the 2011 general fund and Victoria Recreation Center operating bugets, there were some comments about reporting from the Minneapolis Star Tribune and the Chanhassen Villager regarding taxes paid by residents in the City of Victoria.

Stated Councilmember Kim Roden, “The Star Tribune does comparisons every year of taxes paid by citizens and they show taxes increasing for Victoria for 2011. People need to know, or to be reminded, that there are three major components of property tax dollars. A resident’s property tax bill is comprised of not just city taxes, but also county and school taxes.”

She said that a resident’s property taxes can continue to rise, even though the City of Victoria keeps the lid on, and this is related to tax increases from the county and school, not to mention increases in valuations of property.

Mayor Mary Thun agreed, “I, too, am really tired of reading in the StarTribune about tax increases in Victoria. I’m very disappointed, too. It sends the wrong message to our citizens. I wish the StarTribune would give additional information in this regard.”

Jylan Johnson, the award winning Finance Director for the City of Victoria, added, “The comparison made in the Chanhassen Villager isn’t comparing apples to apples. That’s very unfortunate.”

Stated Councilmember Tim Amundsen, “The demand for services and quality of service continues to grow. The city is always trying to do more with less. It’s been a conscientious effort on the part of the City Council.”

Agreed Councilmember Tom O’Con-nor “It’s also important to recognize this [budget and motion to approve the budget and levy] reflects months of work.” He summarized that there has been study and review of the budget for some time.

“It’s a lot of work for both city staff and the Finance Committee,” agreed Councilmember Kim Roden. “This [approving the final levy and budget] is sort of like putting a ribbon on a lot of work from throughout the summer.”

***

Jylan Johnson said that the City of Victoria’s overall 5% decrease in the tax levy from 2010 to 2011 keeps a flat tax rate of 37.4 -- which means a tax of $3.74 per $1,000 in property valuation.

The levy for 2011 includes a $30,000 reduction from the preliminary levy approved in the fall of 2010.

Total levy for 2011 is $4,106,550. Total levy for 2010 was $4,312,280. The levy includes three components: the General Fund Levy, the Field House Levy, and the Special Levies for Debt Service.

Jylan also summarized and reiterated the fact that a resident’s property tax bill is comprised of county tax, school tax, city tax, and a minor miscellaneous tax for mosquito control and such things.

She reported that Carver County is reporting a 5.5% tax increase, that School District 112 is reporting a 12% tax increase, School District 110 is reporting a 17% tax increase, and the Minnetonka School District is reporting a 14% tax increase. Residents in the City of Victoria attend these school districts and pay property taxes to the school district within which they reside.

“So Victoria homeowners will see a property tax increase,” said the Victoria Finance Director, despite the fact that the City of Victoria keeps its own tax rate flat.

In comparing the tax rate of all Carver County cities, Jylan said the Victoria has the third lowest tax rate as indicated by the the following table of 2011 tax rates.

Cologne 61.8%

Waconia 43.4%

New Germany 62.1%

Watertown 47.7%

Carver 50.6%

Chaska 23.4%

Chanhassen 26.7%

Victoria 37.4%

Mayer 59.4%

Norwood Young Am. 48.6%

***

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