FIXING VICTORIA ROADS MORE COSTLY
FOR RESIDENTS BOTH ASSESSED AND TAXED
Council directed city staff to work with Councilmember Kim Roden on the city's extended street improvement sched-ule and come back to the full council with recommendations about how to proceed.
The city's street and utility capital improvement projects have been proceed-ing with approximately $2 million in anti-cipated and budgeted annual expenditures for the city through 2010.  However, costs have increased substantially and the city budget or the annual schedule needs to be adjusted and residents notified if there is a change in the long term plan to fix and improve all city roads.
Reported City Engineer Cara Geh-eren, "We have completed the 2006 improvements and are in the process of completing the 2007 improvements.  I thought it would be wise to revisit costs since prices have been increasing.  When I went through the process of updating, there's a pretty significant jump."
She reminded councilmembers that $2 million per year in street projects became the magic number because the city could accomplish that amount of street work without raising taxes.  She also reminded councilmembers that sev-eral residential neighborhoods were not included in the capital improvement schedule because they opposed the im-provements.
"We're up to $2.7 million for 2008," said the engineer.  "I think it's important to move forward with more accurate num-bers.  It's way above $2 million for 2008 and 2009.  You may want to reallocate roads and redistribute them."
"Would any councilmember be inter-ested in sitting down with me on this?" she asked.  "Then I'd present a revised re-distribution list ... I've been getting calls from residents as to how they could move up the schedule."  She said that remaining at the $2 million mark each year "would essentially prolong how long it'll take for you to get through all the work."
Replied Councilmember Roden about residents who postponed or rejected im-provements to their streets in 2004, "They will be sorry."
Agreed Councilmember Amundsen, "People were told years ago that costs could go up and they still didn't want to be on the schedule until way down the road."
Asked Councilmember Paulsen, "Do soft costs go up as much as oil?"
"That's a good point," said Cara.  "Just because the price of oil goes up doesn't mean I get paid more."
In response to Councilmember Roden's question about considering a change in the 50-50 proposition to, say, the previous 75-25 split - whereby bene-fitting properties pick up 75% of road reconstruction costs, Cara replied, "You're almost limited to the increase in property values.  We're at it now with 50-50."
"It's not what I'm recommending," said Kim, "but it's important to get it out there.  Extraordinary conditions call for extraordinary measures."  The obvious was not stated, that 50% of road reconstruction costs are picked up by assessments to benefiting properties while the other 50% of costs are picked up by all city taxpayers as a whole.

NINE BIDS TO FUND
VICTORIA'S 2007 STREET IMPROVEMENT PROJECTS
Paul Donna, the city's financial con-sultant, reported on July 26^th that the city sold $1.9 million in General Obligation Improvement Bonds to fund the Smith-town Road and 2007 street reconstruction projects. 
Nine bids were received, "which is rather unusual," said Mr. Donna, "but it was the only long term note (15 years) on the market today.  The trend is lower interest rates.  It was good timing on the city's part."
Low bid was 4.155%, or 4.35% with financing costs.

A "DIFFERENT KETTLE OF FISH"
ON STIEGER LAKE LANE IN VICTORIA
Kelly Green Irrigation, located in the old C. H. Carpenter warehouse along Stieger Lake Lane, received permission on July 12^th to bring a temporary trailer office onto the property for up to 5 years.
Explained Planner Holly Kreft, "It's a portable structure for an office so that the warehouse doesn't need to be equipped with a sprinkling system.  The Planning Commission recommended a sunset period of three years; the applicant would like five years.  Staff recommended the trailer, basically as a compromise." 
Holly estimated it would cost be-tween $150,000 to $200,000 to install a sprinkler system in the warehouse.  She also admitted that the temporary structure does not meet downtown standards.
Councilmember Jim Paulsen stated, "We have here what we all know is an in-terim use.  I can't see the sense of spend-ing money on that pole barn.  It's not a structure that's going to survive."
"We've very strict with other people," said Councilmember Richard Tieden.  "Very strict."
"But we're not often dealing with a pole barn," said Councilmember Paulsen.  "I think we're dealing with a different kettle of fish here."
Councilmember Tim Amundsen said, "Using the property is important for now, rather than having it sit there vacant ... I think it's important to get business here."  City Attorney Mike Norton added, "The city can approve interim uses, so it's not setting a precedent.  I'm not troubled by this."  Durbin Kelly, one of the principles of Kelly Irrigation, said there's a big invest-ment for him to move in the portable office and he'd like to spread it over five years instead of three.  As for esthetics, he said, "We're big into appearance.  There will be some landscaping around the trailer.  I also have an interest in watching what's going to happen in Victoria with the Creamery property and other areas."

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