Victoria MN Newspaper

PRELIMINARY 2015 CITY BUDGET

LEVY UP BY 4.56%, TAX RATE DOWN BY 4.14%

Council held a workshop on September 8th at which time Finance Manager Kelly Grinnell presented a draft city budget for 2015.

After looking at the numbers and reviewing the draft budget that evening, Council agreed to add additional cost items to the budget including a Public Works Part time Lead Worker ($2,500), the use of the more costly recycled paper in the office ($550), and an increase in fire department wages ($11,000), parking lot and boulevard maintenance ($10,000), and electrical upgrades.

Why a Lead Worker? Stated Ann Mahnke, Director of Parks and Public Works, "Chuck [Supervisor Aljmheld] and I get a significant number of calls and there's not a lot of time left in a day. Having that person available is very much needed."

Ann also stated, "Pavers have always been a nightmare. We need upgrades to electrical boxes. Even $10,000 would help us start picking away at some of these items."

On September 22nd, Council adopted a preliminary budget, including the above items to be certified to Carver County. Final budget adoption occurs at year end. Until then, said Kelly, "we can't increase the levy but would certainly look at ways to decrease it."

The proposed budget for 2015 shows a 3.28% increase in revenues and a 4.48% increase in expenditures from those of 2014. It shows a 4.56% levy increase ($180,800) over 2014. As Kelly said, "This increase is due to the debt service for the new City Hall-Library and the Aster Trail improvements."

Kelly pointed out, at the same time, there is a 2% increase in the Consumer Price Index and a 3.5% increase in the population of Victoria.

The city's General Fund Levy remains identical to that of 2014 ($2,887,000), however, while the Recreation Center Levy decreases by $65,000.

Preliminary 2015

City of Victoria Tax Levy

General Fund Levy .......................... $2,887,000

Recreation Center Levy ...................... $160,000

Debt Service Levy ............................ $1,094,800

TOTAL LEVY $4,141,800

Detail on the Debt Service:

Diethelm Park Land Lease ................... $87,800

G.O. 2004 Improvement Bonds ............ $93,000

G.O. 2006 Improvement Bonds .......... $134,000

G.O. 2007 Improvement Bonds .......... $115,000

G.O. 2008 Improvement Bonds .......... $122,000

G.O. 2009 Improvement Bonds .......... $194,000

G.O. 2010 Improvement Bonds ............ $83,000

G.O.2013 Improvement Bonds ............. $78,000

2014 Lease Revenue Bonds ............. $188,000

TOTAL DEBT SERVICE ........ $1,094,800

As reported in the past, the levy for the Diethelm Park land pays for the city's lease of the land from the Victoria Economic Development Authority. The EDA (Victoria City Council, in fact) issued revenue bonds to finance the purchase of Diethelm Park in December of 1998. The bonds will be repaid in full in February of 2018.

Each of the seven General Obligation Improvement Bonds in the proposed levy for debt service is related to the city's 50% share of road reconstruction costs in the various Victoria neighborhoods during the identified years. The other 50% of cost was assessed to property owners in the neighborhoods.

2004: Parkside Schutz Lake, Smithtown, So. Lake Virginia Shores.

2006: Lilac Circle, Hyacinth, Wintergreen, Kirke Lachen, Bayview, 77th Street.

2007: Woodstone Drive, Smithtown.

2008: Baycliffe, 80th St, Victoria Cir.

2009: Lions Park Area, Hartwood, Downtown Phase II.

2010: Lake Auburn Neighborhood.

2013: Aster Trail/Aster Circle

2014: New Victoria City Hall

Mayor Tom O'Connor pointed out that the city's proposed levy for 2015 is still below the 2009 levy high. "That's a pretty good record," he said.

As for tax impact, a median valued home in Victoria will see an increase of $36 in the city portion of its property tax statement. "This includes debt service for the new City Hall/Library," said Kelly. (The new Public Works Facility is not being financed but being paid for in cash.)

Click here to continue Proposed City Budget