MORE ROOM NEEDED AT CITY HALL
COUNCIL TO CONSIDER FRUGAL OPTIONS
Councilmembers held a workshop June 23^rd to discuss a draft 5- year Capital Improvement Plan for city purchases in the years 2005 through 2009.  One of the major capital improvements cited for 2008 is a new City Hall-Library complex estimated to cost $7 million.
As the workshop began, City Finance Director Jylan Johnson said she had three goals that evening:  to determine which expenditures are necessary and which can be postponed, to begin plans for the 2006-2010 Capital Improvement Plan, and to set up a preliminary city budget work-shop.
She explained that the earlier 5-year plan included tax revenue from 300 to 400 new homes per year.  Since that number was reduced to 150 per year, due to limit-ed sewer capacity, proposed expenditures had to be greatly reduced.
"I'd like to get some direction from Council," said Jylan.
Councilmember Mary Thun spoke directly.  "I'd like to seriously talk about cutting the tax rate.  I think we spend too much money.  I think we should look at every little tiny thing, including contract-ing some services.  I don't think people are going to take this much longer.  I don't think we have the money.  There is no money laying around."
Regarding a proposed new City Hall, Mary said, "Even though our hearts tell us we want to do that … I don't think we're going to get the support of the community if people keep paying more taxes."
She acknowledged that even as the City of Victoria maintains a stable tax rate, property taxes continue to rise be-cause property valuations continue to rise.  High valuations mean more taxes.  Last year alone valuations went up 8%.
She continued, "Appreciation of property is going up so high and taxes are therefore getting so high … And I don't think we should cut it from staff."
The need for more space at City Hall is recognized by councilmembers and staff, but building a new City Hall might not be the answer, she said.  Mary looked instead to the existing Council Chambers Hall, where council meetings are held, where the Victoria Lions hold their meet-ings, where other community functions occur.
"I think we could outfit this place and the Acorn House [at Diethelm Park] for $50,000 to $100,000," she said.  "I think we need to have a meeting with the Lions and say this is the situation and ask them to be part of the solution.  I think that should be our top priority, lowering the tax rate!"
Even considering increases in prop-erty values, Councilmember Thun stated, "I'd like to say that taxes are going down."
Mayor Jerry Bohn pointed out that the city is already struggling just to keep the tax rate where it is.  He said it is also important, in looking at capital improve-ment expenditures, to keep the general fund balance at 25%.  This helps give the city a good credit rating.
Mayor Bohn stated that Council would need to determine what the city's tax rate should be if the county raises property values by 8% again, for example.
The mayor also asked for staff to figure out the tax impact for residents if Council can, indeed, come up with a tax reduction ranging anywhere from 1% to 5%.
The finance director will contact the Carver County Assessor and ask about current trends in property valuations.  She will also try to obtain costs for outfitting the Hall as city offices - probably creating cubicles - as well as making space at the Acorn House more city friendly. 
Budget workshops are scheduled for August.  The proposed 2006 city budget must be certified to the county in Septem-ber.

WHERE CAN VICTORIA CITY HALL FIND MORE SPACE?
City Administrator Steve Sarvi iden-tified at least three solutions that would provide additional space for City Hall:  1) The Inspections Department could be moved to the Acorn House.  2) Office space could be expanded and built in the existing Hall but would require a new Council Chambers, perhaps at the new Fire Station.  3)  A construction trailer could be rented and moved behind City Offices.
Steve emphasized, "It's a significant benefit for residents to be able to come to one spot rather than chasing around town to find everybody."

LOOKING AT OTHER PROPOSED CAPITAL EXPENDITURES.
Other changes in the draft five-year capital improvement plan include the $25,000 electronic documents imaging system (which can be outsourced), the $80,000 snowplow tractor with blower for cul de sacs and downtown district (which can be delayed to 2006), the $2,000 elec-tric golf cart (a $400 lease can suffice), $15,000 in furniture for Park & Rec and the Field House (garage sales will be visited).
Capital expenditures that will prob-ably remain in place for 2005 include two tankers for the Fire Department at a cost of $240,000 and a $15,000 hose drier (they're funded from the fire truck fund), the upgrading of an existing lift station, new lift station, and forcemain at $516,625 (cost is coming our core fees), playground equipment for the two big parks at a cost of $200,000 (it's already being installed).
Discussion continues about the $30,000 expenditure for a Lions Park timer for lights and $8,000 to reconstruct tennis courts at Lions Park and South Lake Virginia Shores.
Other large expenditures proposed for the future include a downtown parking ramp, a new Public Works Garage, and a swimming pool.
Another large capital expense occurs when there is street reconstruction in Vic-toria.  Fifty percent of such cost is assessed to benefiting property owners, and the other 50% is paid by the city.  When several street projects are done in one year, the city's bill becomes very large that year.  It was acknowledged that spacing out street reconstruction projects might lessen economies of scale but would assist in balancing the city budget.

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