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As for additional revenue for the city, Mayor Mary pointed out, "State aid gas tax money will change things, too." When the city reaches a population of 5,000 - probably in 2002 - all gas tax money comes directly to the city. This is a six-figure number.
Council held a special workshop the morning of December 5th to walk through the Capital Improvement Program, which is a "wish list" submitted by the city's various departments, and it includes the ice arena.
The Springsted model will be used to determine present and future impact on the taxpayers of Victoria. Another work-shop is scheduled for 4 p.m., prior to the December 13th regularly scheduled coun-cil meeting. The city budget and its im-plications will be adopted that evening.
OPPOSING MnDOT'S SPEED LIMIT
AS POSTED FOR COUNTY ROAD #18
Some Victoria residents are upset and concerned about the speed limit posed by MnDOT for the new County Road #18 through Victoria. Mayor Mary Meuwis-sen read and signed a letter directed to MnDOT supporting the residents and ask-ing for a lowering of speed limit. Carver County Engineer Roger Gustafson also supports Victoria.
City Administrator Steve Sarvi said that the State of Minnesota conducted a speed study on the road and came up with the 45 and 40 mph limits. Jack Griffin of TKDA pointed out that MnDOT "goes according to road design to come up with its recommendations."
City council and residents prefer that speed limits be posted at 40 and 30 mph for the two sections of #18.
Jack advised that the state's recom-mendation is flawed "because they meas-ured speed of traffic before the road is going to be used as it's going to be used." Speed of existing traffic is used to deter-mine speed limit.
Said Steve, "Typically it's not a win-ning battle for a city, even with county support."
Three residents spoke to the issue. Said Jeff Kron, "You're getting a lot of heavy trucks on that road. One of the city vehicles even drove by doing 50 mph. That road is used heavily. The trees you planted are nice for landscaping but they created a lot of blind spots. Somebody's going to be taken out."
Said Kelly Sherbing, "A large num-ber of children live in the adjacent development of Allegheny Grove. A lot of non-residents are using that road."
Said Troy Meinke, "We thank the council for attempting to address the issue. You have to remember that people also tend to drive 5 mph over the posted speed limit."
Said Mayor Mary, "We'll send the letter to MnDOT. Maybe some people from your neighborhood will also send letters. You've got two levels of govern-ment on your side. Thank you for com-ing."
BECOMING MORE "TRANSPARENT"
TAXES ARE HIGH IN MINNESOTA
The Springsted firm was hired by the City of Victoria, a while back, to study Carver County's tax structure to deter-mine why county taxes are so high. On November 29th results of that study were summarized for councilmembers by Nick Dragisich of Springsted.
Said Nick, "Our purpose was to study the county's tax rate only in comparison to three other counties - Dakota, Scott, and Washington - not to find fault or blame, but to look at what drives tax rates."
"Carver is basically higher than the other counties," he said. "Carver County had the highest per capita spending in total dollars than four out of eight coun-ties. The total tax capacity per capita was the second highest to Dakota County. Carver County has the highest total debt. Carver County is not building up large cash reserves in the last four years."
One of the biggest culprits seems to be Tax Increment Financing used exten-sively by two cities in the county, Chaska and Chanhassen. In Carver County, there are $133 per capita captured for use by particular TIF districts. In other counties, the average is only $40.
Councilmembers asked what this means to the average taxpayer in the county. Calculations showed that it means an extra $230 per year on the property tax bill of a $250,000 home and an extra $281 on a $300,000 home. In other words, Victoria taxpayers continue to subsidize the large TIF districts.
Councilmember Jim Paulsen pointed out that approximately $4 million is com-ing into the county each year but not pay-ing for county expenses, instead going to TIF districts.
Jim pointed out that Chaska does con-tribute $750,000 to the school district from its TIF dollars. "That's a positive," he said, "and yet at the same time it raises questions ... Chaska has given $3 million to the school district in the last five years ... I can't help but wonder about the relationship between Chaska and the school district."
Agreed Councilmember Richard Tieden, "When I look at that relationship and the history between Victoria and the school district, it makes me a little angry. If we had that ability to hand dollars to the school district, might we have a school here? And, to top if off, we pay $281 in addition because of it. It doesn't make me feel good."
John Siegfried, Carver County Com-missioner, and resident of Chaska, attend-ing this November 29th meeting of the Victoria council, stated, "I can't help but note that the City of Victoria has a couple of TIF districts, and that you've looked upon it as a good growing tool."
Responded Mayor Mary, "We all know that TIF was meant for cities like Victoria, to help bring in business, and that the cities of Chaska and Chanhassen have taken it far beyond what the legisla-ture envisoned." The mayor spoke specifically of the "but for" test, that a project would not have taken place "but for" TIF dollars.
TIF districts are created to capture the increment in tax dollars that results from an increase in the value of the property. That increment goes to pay expenses in-curred within the TIF district, not to general fund operating expenditures of a city .. and also not to the pockets of the school district or county.
Stated Nick, "We like to believe that the 'but for' test has been used in all of the TIF districts, that the market rate of return would not have occurred on that property but for TIF. I like to believe that people act in the best faith."
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