Victoria MN Newspaper-The Scoop at City Hall

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VICTORIA’S TAX RATE GOING DOWN

AS CITY COUNCIL ADOPTS FINAL 2014 LEVY

On December 9th, city councilmembers unanimously adopted a final city budget and levy for 2014. The total levy of $3,961,000 is .34% higher than the 2013 levy. Stated City Manager Don Uram, "This is the first levy increase since 2009 and it's minimal. We've become as efficient as we can."

The new tax rate is 37.9%, which is lower than anticipated. The preliminary budget approved in September had maintained the current 2013 tax rate of 39.5%. Staff had been asked in November to present scenarios for a reduction to 39% and 38.5%.

A tax rate of 37.9% means that a tax of $3.79 is paid per $1,000 in property valuation.

After the budget and levy presentation by Finance Manager Kelly Grinnell, Councilmember Tom Strigel thanked staff for their work in meeting the stated goal of bringing the tax rate down.

"We've been able to achieve that faster than I expected," he said. "It's a great tribute to the staff. Victoria doesn't get Local Government Aid. This decrease in tax rate is the result solely of staff."

Agreed Councilmember Jim Crowley, "This is exceeding my expectations. Thank you very much. The hard work of staff did this."

Stated Councilmember Lani Basa, "It was a huge effort. I didn't know you'd sharpen the pencil that tightly. Great work."

City taxes on homes in Victoria will decrease in 2014:

•A $200,000 home will see a reduction of $17 to $685.

•A $306,900 home will see a reduction of $29 to $1,127.

•A $413,800 home will see a reduction of $42 to $1,569.

•A $600,000 home will see a reduction of $37 to $2,525.

It was pointed out that the city portion of a property owner's total tax bill is about 28%. The rest goes to Carver County, the School District, and other taxing districts. Most residents in Victoria live in the Eastern Carver County School District. Others live in the Waconia School District or the Minnetonka School District.

On a median value home in Victoria ($306,900), school taxes range from $4,067 (Eastern Carver) to $4,119 (Waconia) to $4,178 (Minnetonka). In other words, there is a difference of about $100 in overall taxes that the school districts collect from a Victoria homeowner.

About the city's budget process, Mr. Uram stated, "We spend the majority of the year working on this and have had several meetings with the Finance Committee. This is an ongoing effort by staff and council."

Kelly pointed to highlights of the General Fund Budget including total revenues of $3,792,402 and a levy of $2,887,000. She said the levy for 2014 is increasing by $32,354 over 2013.

Building permit revenues are increasing by $91,543 from 2013 due to the increase in projected new homes. Over 100 new homes were constructed in Victoria in 2013. That end-of-year number could easily be 114 new homes for the year.

Kelly listed several expenditures that had been in the preliminary budget that were cut or reduced to arrive at the lower tax rate. The changes included wage increases of 2% rather than 3%, a delay in filling a Public Works position until 2015, eliminating the open programmer position at Park and Rec, further reductions in employee health insurance, a reduction in audit fees, and a reduction of $6,000 in phone service due to the new fiber ring connection.

Adopted for 2014:

General Fund Levy $2,887,000

Recreation Center Levy $225,000

Debt Service Levy $849,000

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