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VICTORIA 2012 LEVY AND BUDGET

DECREASED BY $50,000 FROM PRELIMINARY

         On December 12th Victoria city councilmembers held a Truth in Taxation Hearing (no resident spoke at the hearing) and approved the final 2012 Tax Levy and General Fund and Victoria Recreation Center Operating Budgets. 

         It took three motions to adopt the three items.  The votes were unanimous on the General Fund and Recreation Center Budgets.  The vote was 4-1 on the Tax Levy with Councilmember Jim Crowley casting the nay vote.

         In regard to the preliminary tax levy and budget, approved in September and reported in the October issue of the Gazette, Councilmember Crowley had said, "We could have passed a budget for 2012 without raising the tax rate."

         The 2012 city budget and levy are each $50,000 less than the preliminary budget and levy approved in September.  As Administrator Don Uram pointed out, the reduction is due to the change in the Market Value Homestead Credit program, and the Finance Committee recommended decreasing the preliminary budget by $50,000 rather than increasing the preliminary budget by $50,000.

         In bringing the General Fund Levy down from the proposed $3,010,692 to $2,960, 692,  three of the city's various departments decreased their proposed 2012 operating expenditures including General Government, Public Safety, and Public Works. 

         The Total Certified Levy for 2012 is now $4,050,492 rather than that proposed in September ($4,100,492). 

         The General Fund Property Tax for 2012 is now $2,985,692 rather than that proposed in September ($3,035,692).

         Stated City Administrator Don Uram, "We have spent months working on the 2012 budget.  Our tax base and market values continue to decrease.  We expect it to continue in 2013 and possibly 2014.  We continue to maintain our existing services but try to do things a little bit differently."

         He also spoke of "bright spots" for the City of Victoria, however, including 67 new housing starts in 2011.  "In permit values, we've added $18 million to our tax base.  But we continue to have vacancies downtown.  We're starting to see developer's interest in Victoria.  From my perspective, things are picking up."

         Mr. Uram pointed out that the 2012 final levy is $56,058 lower than the 2011 tax levy.  He reported that this is the third year in a row that the city's levy will have decreased.  City tax will decrease for Victoria  homeowners who experience a decline in market value greater than 4.5%.

         As for the 2012 city budget, it is an increase of $5,778 over the 2011 budget.  But operating expenditures for 2012 will decrease by $37,397 compared to 2011.

         The budget ($1,073,078) and levy ($250,000) for the Victoria Recreation Center remain unchanged from the proposed 2012 budget and levy, which represent an increase of $18,718 in operating expenditures over that of 2011.

***

         In an overhead presentation, Finance Director Jylan Johnson reported that the city tax rate in 2011 was 37.4% and it will be 39.2% in 2012.  The median assessed value of a home in Victoria in 2011 was $341,800.  In 2012 it is $317,900.  In 2011, it cost a median value home $104.53 in taxes to pay for city services.  In 2012 that number is $101.03. 

         As a reminder, a median value home is not the same as an average valued home, although the numbers are not drastically far apart.

         Jylan said there is an 80/20 ratio of city operating expense to city debt service expense.  Asked Councilmember Tom Strigel in that regard, "Is there a government accounting guideline or standard for that?"

         Replied Jylan, "We can certainly check with other communities."

         Asked Councilmember Kim Roden, "What is the total amount we'll have set aside for a Public Works facility in 2012?"

         Replied Jylan, "I'm fairly certain the total amount will be $1.4 million."

         Added Mr. Uram, "Right now we have $1.3 million."  He added that a new facility will probably cost in the $4 million range with land and everything.

         Asked Councilmember Roden, "Do you propose to address the Council in 2012 about this building?  At what point will we be ready to move forward?"

         Replied Mr. Uram, "I have been working with the Real Estate Committee.  All options are on the table.  I hope to have a better direction at the end of this month."

 

Levy and Budget Continued.

        

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January 2012

WATERBROOKE

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