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The Victoria GAZETTE |
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VICTORIA FOCUSES ON THE FUTURE AND PREPARES A CITY BUDGET FOR 2013 Spring 2012 has barely begun but the Victoria City Council is already preparing for the 2013 city budget. As a matter of fact, preliminary numbers for 2013 were already put together back in 2011. Councilmembers held their first budget workshop this year on April 9th, prior to the regularly scheduled council meeting. "This is an abbreviated budget discussion," said Administrator Don Uram. "In 2011 we approved a preliminary 2013 budget." "There is good news and bad news," he said. "Existing properties are still declining in value but we have new construction. It's a balancing act. We have a lot of inventory. There are no major changes." "It's not a complicated budget from a staff perspective," continued Mr. Uram. "I believe we're at 13 [new home] permits this year, which is a little behind last year." Last year there were 17 permits issued in the first quarter. In a residential community, building permits equal city revenue. Mr. Uram said the preliminary 2013 budget shows $86,495 in additional revenue over expenditures for the General Fund but cautions, "This is preliminary but it is a positive." He said the 2013 budget for the Victoria Rec Center shows $120,491 in additional revenue over expenditures, but added, "I would recommend that Council continue to set aside money for capital expenditures." He asked, "Is there anything Council would like to comment on specifically?" Stated Councilmember Tom O'Connor, "I'd drive home the point that we're a residential community. We need to support residential construction." Councilmember Tom Strigel agreed, adding, "The lot inventory number is getting really small." He also said he wanted to keep alive the thought that when there is a surplus, the tax rate should go down. "I think that's a good point," said Councilmember Jim Crowley. "If we have dollars over, we could lower the levy. Having an overage gives us that opportunity." Councilmember Kim Roden countered, "I would get nervous about setting aside a one-time overage. Along with growth comes cost. It doesn't come without cost. We have to provide services. I don't want it to be said that if we grow, all our problems go away." Said Councilmember Strigel, "I think it's important to monitor the situation. As the picture becomes more clear we see if it's a continuing trend. I agree you don't want to make long term decisions based on a one-time overage." Councilmember Crowley continued to voice concern that tax rates should go down if the city collects more money than it needs. To the city administrator he said, "There is time to give us more information to help us make better decisions." "It takes a certain amount of money to run the city," said Councilmember O'Connor. "When assessed valuations go down, rates go up. So when assessed valuations go up, rates should go down. We can't just keep raising rates. We ought to look at bringing rates down." Councilmember Roden pointed out, "There are conflicting data points. It's a hard thing to get your arms around." She said reports indicate home sales are going up, but home prices are coming down. She also referred to a large new development coming to Minnetrista that could draw homebuyers away from Victoria. Said Mr. Uram, "As long as Chaska and Chanhassen continue to add industrial projects, there's hope for us." The suggestion is that employees look at the broader area for a place to live. "I am concerned about our staffing level," he said. "As we get more streets, we'll need to add a staff person and buy a new truck. That's a significant cost." On the council agenda later that evening, after the workshop, was the looming residential development of large properties south of Lake Wasserman. The City of Victoria is preparing to bring utilities to that part of the city in preparation for development. Continuing city services include maintenance of sewer, water, and streets. Stated Councilmember Roden, "We do live in a high service expectation area. I'm impressed with the service for the size of staff we have. When people call here, they get an answer. People don't want to go backwards." "I agree we've got a good staff doing a tremendous job balancing all the balls," said Councilmember Crowley. "Don is saying it looks good but there are a lot of things we've to do." City staff will review line item details of the preliminary 2013 budget and plan for another council workshop.
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Sue’s Album A symphony of photos and fewer than a thousand words at www.VictoriaGazette.com |
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May 2012 |
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CORNERSTONE Insurance Agency Inc. |
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David Barsness, CPCU Chaska 952-448-5028 |
