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VICTORIA ANTICIPATES TAX DECREASE

PROPOSED 2010 LEVY AND BUDGET NUMBERS

Council held a 5 p.m. workshop on Monday, August 24th, just prior to the regularly scheduled 6:30 p.m. city council meeting, in order to review the proposed 2010 budget for the City of Victoria. As the workshop began, Councilmember Jim Paulsen said, “The secret to this budget being successful is council discipline.”

Jylan Johnson, the city’s Finance Director, went through a series of overhead reviews with council and staff that began with three stated goals: Minimize city tax impact on Victoria residents, improve service levels, and align staff to support operations.

She reported the proposed 2010 budget maintains the city’s current tax rate of 37.4%, reduces the General Fund budget by 1.3%, and provides for the repayment of interfund loans as well as some funding for a new City Hall and Public Works Building. The proposed 2010 General Fund Revnues of $3,992,550 are 1.3% lower than that of 2009.

In projecting revenue for 2010, the finance director said the city is planning for 40 new home permits in 2010. This is not including tax or permit income that might result from commercial construction.

Jylan said that on a median assessed value home in the City of Victoria, there will be a $43 decrease in the city portion of the property tax. According to the Carver County Assessor, she said, the median value home in Victoria in 2009 was $369,200. For 2010 that value is $357,800.

Jylan said the proposed 2010 levy of $4,314,356 is a 1.1% decrease from the 2009 levy.

The proposed budget for the Victoria Field House, officially renamed the Victoria Recreation Center later that evening, was also reviewed.

With the 2009 budget, the City of Victoria realized a levy of $1.2 million for the Victoria Recreation Center. Proposed levy for 2010 is $873,856. It was pointed out that partnership with School District #112 results in a rent payment of $408,000 to the city and therefore a greatly reduced levy.

Numbers for the levy and budget are scheduled to be approved on September 14th with certification to Carver County by September 15th. Final levy and budget numbers will be approved in December, 2009.

In that regard, the City of Victoria will hold a Truth in Taxation hearing on Monday, December 14th, 2009, at which time the public is allowed to speak, the budget and levy will be discussed, and the final levy determined.

IT’S THE VICTORIA RECREATION CENTER

TO MORE ACCURATELY DESCRIBE THE FACILITY

It is now called the Victoria Recreation Center, not the Victoria Field House. Council voted 4-0 on August 24th agreeing to the name change.

Reported Ann Mahnke, Victoria Director of Park and Rec, “We’ve been discussing this with the staff and with the school district and the Park and Rec Committee. A large donation and naming rights haven’t occurred over the last six years.”

The name will be constructed and visible on the outside of the building. Entrance signs on the property will indicate the partnership between the City of Victoria and School District 112.

Stated Councilmember Jim Paulsen, “I think it’s a good choice and a good change. But how would you feel about ‘Rec’ rather than ‘Recreation’?”

Councilmember Kim Roden said she always thinks of the sewer when talking about REC units. In that case it stands for Residential Equivalent Connections.

PAYING FOR 2009 UTILITY IMPROVEMENTS

VICTORIA CHOOSES TRADITIONAL OPTION, NOT BABS

Council voted 3-1 August 24th to approve a resolution that authorizes the issuance and sale of $3,475,000 in traditional tax-exempt bonds, retaining the right to reduce that amount by $547,062 for the self financing or cash payment of utility improvements. This resolution does not include Build America Bonds (BABS) which are taxable bonds.

Mayor Mary Thun voted against the motion. Her motion to approve the resolution as presented by staff, which would have sent the sale out to receive both tax exempt and taxable BABS bids, had failed for lack of a second. Councilmember Tom O’Connor was absent.

The motion gives the city a way to pay for its 2009 street improvement project. The 2009 sewer and water costs may or may not be paid for using city cash reserves.

Paul Donna, the city’s financial consultant with Northland Securities, explained that the Build America Bonds program is a new option that has apparently been accepted by the market. As for Victoria spending cash, he stated, “Most cities say cash is king and they’re stashing it away for other uses.”

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