Victoria MN Newspaper-City Scoop

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Kelly said that property taxes are projected to bring in 77% of the city's 2014 General Fund Revenues, which is a decrease from the 80% last year, mainly due to the increase in city licenses and permits.

She said that General Fund Revenues are projected to increase in every category except Fines & Miscellaneous.

As for the 2014 General Fund Expenditures, Kelly said they will be very similar to last year but there will be additional seal coating for the long term street maintenance fund.

She pointed out that the projected 2014 General Fund Expenditures, broken down by function, include Public Works (31%), General Government (29%), Public Safety (24%), Parks and Recreation (12%), and Water Fund Loan Transfer (4%).

Kelly had another graph showing projected 2014 General Fund Expenditures broken down by character: Wages and Benefits (41%), Contracted Services and Utilities (27%), Supplies, Repairs, Maintenance (13%), Transfers (13%), Miscellaneous (4%), Capital Outlay (2%).

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The City of Victoria annually details a separate budget for the Victoria Recreation Center. In 2014 total revenues are projected to see a slight increase, said Kelly, but there is a 4% projected decrease in expenditures. "Overall expenditures are less," said the finance manager, "because of lower maintenance and utility costs due to the sales tax exemption."

Total projected revenue for 2014 at the Rec Center: $1,142,710 (compared to $1,141,903 in the 2013 budget). Total projected expenditures for 2014 at the Rec Center: $1,025,097 (compared to $1,069,922 in the 2013 budget).

Over half (52%) of the Rec Center revenues are projected to come from charges for services. Other revenue (22%) is projected to come from property taxes, with the rest (26%) coming from Miscellaneous and Reimbursement, primarily the amount of dollars received from local School District 112 for operating expenses. The Rec Center is a partnership between the City of Victoria and School District 112.

Nearly half (45%) of the Rec Center expenditures are projected to pay for debt service. Other expenditures include Contracted Service and Utilities (28%), Wages and Benefits (18%), Supplies, Repairs, and Maintenance (7%).

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Kelly pointed out that the price tag for 2014 City of Victoria capital improvements totals $3,082,670. The biggest item included in this number is for Street Improvement Bonds ($1,545,000). Cost for new public facilities -- City Hall and Public Works building -- were not yet included in the list of capital improvements.

Capital improvements are projected to be close to $3 million for each of the next three years, 2015 to 2018 .

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The preliminary General Fund Levy for 2014 is projected to be $3,020,000 (a 5.8% increase over the 2013 budget). The Rec Center Levy for 2014 is projected to be $250,000 (same as 2013). The Debt Service Levy for 2014 is projected to be $849,000 (.7% increase over 2013). The Total Levy for 2014 is projected to be $4,119,000 which is a 4.3% increase over the 2013 Total Levy of $3,947,646.

Kelly pointed out that the city's highest tax levy was in 2009, and that the levy has decreased every year since then, until now with the proposed increase for 2014.

She said the city tax on a median valued home in Victoria would increase by $23 and go from $1,155 in 2013 to $1,178 in 2014. The monthly cost translates to $98 which is $3/month higher than in 2013.

City tax on a $200,000 valued home would go from $702 to $717.

City tax on a $600,000 valued home would go from $2,562 to $2,629.

City tax on an $800,000 valued home would go from $3,333 to $3.922.

A resident's annual property tax statement also includes county taxes, school district taxes, and miscellaneous taxes from the Metropolitan Council and Mosquito Control District.

The city's Long Term Financial Plan keeps a flat tax rate range of 39.29% to 39.8%. It foresees an increase of households in Victoria from 2,778 in 2013 to 3,378 in 2021 with a population increase from 8,210 today to 9,950 in 2021.

As in the past, the city's preliminary budget must be certified to the county by September 15th. After that date, the levy can then be decreased but it cannot be increased. Final certification occurs in December when a public hearing is held prior to final approval of the budget.

Click here for more Budget Numbers.