Aggressive penny pinching and a joint powers agreement with District 112 are among the factors that have helped the City of Victoria maintain a flat tax levy for 2010.
The Victoria City Council approved the preliminary 2010 levy and budget at Monday's meeting.
For Victoria residents, it means that the city tax rate stays flat at 37.4 percent, and the city's overall levy has decreased by 1 percent ($48,124) from 2009. The preliminary 2010 tax levy is $4,314,356; the proposed general fund budget is $3,992,500, a decrease of 1.3 percent or $51,859 from 2009, and the Victoria Recreation Center operating budget is $260,000, down from $326,800 in 2009, due to the joint powers agreement with District 112 and cost sharing the facility which includes the new ice arena which is home to the Chanhassen High School's Storm hockey program.
For the individual property owner, the city tax rate will remain nearly the same unless the property's taxable value increased or decreased. Jylan Johnson, finance director said homeowners can calculate that rate by adding or subtracting $3.74 per $1,000 valuation based on an increase or decrease from 2009. For example, if a home declined in value by 3 percent, there would be a $43 decrease in city tax. Johnson said that the median assessed taxable value increased from $329,200 in 2009 to $357,800 for 2010.
Mayor Mary Hershberger Thun credited the city staff for its work in keeping a close watch on the city's finances and how the city is the envy of other cities in the county who are facing increased financial challenges in respect to the economy and the state's cost cutting.
Johnson echoed the mayor's observation by phone on Tuesday.
"Historically, Victoria has not received dollars from the state," Johnsons said. For example, the market value homestead credit. If a homeowner's property is valued under $300,000, they receive the credit; the city has never included that allotment from the state in our budget because we felt it was a revenue that could be taken away. We couldn't depend on it."
The joint powers agreement the city has with District 112 with the Victoria Recreation Center has also had a positive impact on the city's finances. City Administrator Don Uram said Tuesday that the agreement "has really allowed us the opportunity to offset more of our operating expenditures.
"The partnership structure is that they pay a lease payment of which we use a portion to pay down recreation center's debt. That combination of lease payments and participation in operating expenditures has helped the city.
"The 2010 budget we've proposed allows the city to maintain all the existing services we currently provide," Uram said, "We're able to maintain our public safety and police and fire coverage, while maintaining a flat tax rate. We will try to enhance some services in the public works department, primarily in the spring of next year."