BUDGET INCREASES 13.3%, NOT 37%
CITY ACCOUNTING PROCEDURES CORRECTED
In September, 2001, Victoria council-members passed a resolution that indicat-ed a 37% increase in city revenues and expenditures projected for 2002.  That resolution has since been revised by city councilmembers, omitting the "Interfund Transfer" of $495,500 and the corres-ponding capital expenditures totaling $495,500.
As now proposed, the resulting bud-get increase from 2001 to 2002 is not 37%, but 13.3%.  The budget revision was needed because of inaccurate accounting procedures regarding revenue bonds.
Councilmember Jerry Bohn explained that construction of a proposed ice arena would be funded by a revenue bond - which means the facility is projected to pay for itself and not through the use of taxpayer funds.  The "Interfund Transfer" should therefore not have been included by the city finance director as part of general revenues and expenditures.
The revised resolution and budget is as follows:

Proposed General Fund
Operating Revenues for 2002

Revenues:

General Fund Property Tax      $1,650,000
Licenses and Permits                   $258,900
Inter-governmental Revenue       $171,908
Charges for Services                    $289,880
Miscellaneous Revenue                $ 64,500

TOTAL REVENUES:             $2,385,188

Proposed General Fund
Operating Expenditures for 2002

General Administration
Mayor and Council                        $14,284
Administration                             $349,625
Finance                                        $117,776
Elections                                        $10,000
Professional Services                   $160,000
Planning and Zoning                     $93,911
Government Building                    $56,900
Total Gen. Administration          $802,496

Public Safety:
Police/Sheriff                               $107,000
Fire Protection                             $276,392
Building Inspection Dept.           $141,221
Civil Defense                                 $20,000
Animal Control                                $5,000
Total Public Safety                     $549,612

Public Works:
General Maintenance /Streets      $375,314
Snow Removal                              $13,500
Street Construction                                   0
Street Lighting                               $45,000
Street Lights                                  $22,200
Street Cleaning                                $2,500
Composting                                     $4,500
Weed Control                                     $500
Engineering Project Coordinator   $71,270
Total Public Works                     $534,784

Park & Recreation:
Total Park and Recreation           $367,441

Miscellaneous:
Total Miscellaneous                     $130,855

   TOTAL EXPENDITURES     2,385,188

Council did not revise the resolution identifying the proposed tax levy for the year 2002.  A 17% increase is projected.  The General Fund Levy is proposed to increase from $1,413,945 in 2001 to $1,650,000 in 2002.  The Total Tax levy, including the city's debt service, is proposed to increase from $1,603,918 in 2001 to $1,882,093 to 2002.  This is also a 17% increase. 
It is a stated goal of the Victoria City Council to keep city tax percentage rates at the same level as, or lower than, in previous years -- in other words, "to hold the line."  However, the assessed values of homes and other properties in Victoria continue to rise.  Property taxes are based on the value of a property, and it is the Carver County Assessor who places values on properties.  If the value of a property in Victoria increases, the city portion of a property tax bill will also increase, despite city success in holding the line.



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