Victoria MN Newspaper-City Scoop

Proposed 2014 Expenditures

According to Function

General Fund Expenditures

General Government

Mayor and Council ............................... $16,911

Administration .................................... $522,154

Finance .............................................. $159,341

Elections .............................................. $22,500

Professional Services ......................... $253,009

Planning and Zoning ......................... $138,549

City Hall Building ................................. $29,568

Total General Government $1,142,032

Public Safety

Police/Sheriff ...................................... $329,886

Fire Protection .................................... $268,845

Transfer to FCE Fund .......................... $64,135

Building Inspections ........................... $261,576

Civil Defense .......................................... $1,500

Animal Control ..........................................$600

Total Public Safety $926,542

Public Works

Streets and Roads .............................. $748,743

Transfer to PWCE Fund .......................$110,000

Transfer to LTSM Fund .......................$165,000

Snow Removal ..................................... $60,500

Street Lighting ...................................... $77,500

Signal Lights ........................................ $10,500

Composting ......................................... $10,277

Total Public Works $1,182,520

Parks and Recreation

Recreation Programs ........................... $55,759

Parks and Recreations ....................... $227,075

Park Maintenance .............................. $168,924

Total Parks & Recreation $451,758

Other Transfers

Transfer-Repay Water Fund ............... $150,000

Total Other Transfers $150,000

TOTAL GF EXPENDITURES $3,852,852

VICTORIA WORKS TOWARD A POLICY

THAT WILL MANAGE AND GUIDE CITY DEBT

The Presentation

Council spent considerable time discussing a Debt Management Policy on September 4th and concluded with a motion to continue discussion at a workshop on October 14th.

Finance Manager Kelly Grinnell gave the presentation. "We originally brought this to Council in June. Tonight is sort of a brief mini-workshop."

She said there are three reasons that the city would choose to issue debt: to finance important items like streets, utilities, buildings, redevelopment; to produce immediate or long-term benefits; to spread a more equitable tax burden across the taxpayers of today and tomorrow.

She said a policy would include guidelines and limitations. A policy would help the city maintain a AA+ rating and improve financial management.

She said that state statute limits general obligation debt to 3% of a city's market value, but the City of Victoria has a self-imposed debt limit not to exceed 1.5% of market value. "A general obligation debt is backed by the full faith and credit of the city," said Kelly.

She referred to the various types of debt that the city issues such as:

*General Obligation Bonds to raise funds for a new City Hall and Public Works Facility, for example. These facilities do not generate revenue so the bonds are paid through a tax levy.

*General Obligation Special Assessment Bonds to raise funds for development projects like street and utility reconstruction. As assessments are collected from benefitting property owners, the bonds are partially repaid. The city pays 50% of street reconstruction projects while 50% is assessed to benefitting properties.

*General Obligation Revenue Bonds that are repaid through the project being financed, like the Water Treatment Plant and the Victoria Recreation Center. There are water user fees and membership fees, for example.

*Capital Leases can be used to purchase an asset like a Victoria fire truck.

*Lease Revenue Bonds are funded by a revenue stream from lease payments.

Kelly said the City of Victoria's total existing debt is $29,090,000 -- nearly all of it for General Obligation Special Assessment Bonds and General Obligation Revenue Bonds.

Click here to continue Debt Policy.