Victoria MN Newspaper-City Scoop

Floor to Ceiling

City tax on a $200,000 home in 2014 will be $715 ($13 more than in 2013). City tax on a $306,900 home in 2014 will be $1,178 ($23 more than in 2013). City tax on a $413,800 home in 2014 will be $1,637 ($26 more than in 2013). City tax on a $600,000 home in 2014 will be $2,624 ($62 more than in 2013). City tax on a $800,000 home in 2014 will be $3,915 ($82 more than in 2013).

There was a fourth motion that evening of September 4th by Councilmember Jim Crowley. "I'd like to see us drop the tax rate from 39.5% to 39% or 38.5%." He made a motion directing City Manager Don Uram to come back to Council with ramifications of reducing the tax rate to 39 and 38.5.

The motion passed unanimously. Mr. Uram said he should be able to complete that request by late October or early November.

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Finance Manager Kelly Grinnell presented on September 4th many other numbers, overviews, and considerations related to the preliminary budget. She pointed out that the total city revenues forecast for 2014 are higher than the expenditures, which allows a contribution of $93,550 to the Fund Balance. The primary use of the fund balance is to facilitate cash flow, since the city receives property tax dollars only twice a year. A second purpose of the Fund Balance is to assist in possible emergencies.

Proposed Revenues

in the 2014 General Fund

General Fund Revenues

Property Taxes ................................ $3,052,392

Licenses and Permits ......................... $328,216

Inter-governmental Revenues ............ $136,221

Charges for Services ......................... $390,356

Fines and Forfeits ................................ $15,117

Miscellaneous Revenue ....................... $24,100

TOTAL REVENUES $3,946,402

Minus Total Expenditures $3,852,852

Transferred to Fund Balance ............. $93,550

Most of the General Fund Revenues (77.3%) come from property taxes. Building permit revenue is projected to increase by nearly $100,000 in 2014 since the city is budgeting for 75 new homes rather than 55 as in 2013.

Proposed 2014 Expenditures

According to Character

General Fund Expenditures

Wages and Benefits ......................... $1,569,524

Materials and Supplies ....................... $505,612

Contracted Services/Utilities ........... $1,048,215

Miscellaneous Charges & Transfers $654,101

Capital Outlay ...................................... $75,400

TOTAL EXPENDITURES $3,852,852

Large factors responsible for the city's increase in General Fund expenditures are the 17.5% increase in health insurance benefits plus the hire of a new Public Works employee. Wages and benefits account for 41% of the city's General Fund expenditures. There is also an increase of $30,929 in the Sheriff's contract, and the city is budgeting $21,172 in election expense since 2014 is an election year.

Click here to continue Proposed 2014 Budget and Levy.