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2006 TAX LEVY TO INCREASE BY 6.3%
CITY TAX ON $300,000 HOME TO DECREASE
On September 8th Victoria City Coun-cilmembers approved a preliminary tax levy for the City of Victoria proposed for collection in 2006.
The City of Victoria is dependent up-on collection of a tax on real and personal property for a portion of the General Fund Operating Budget and to pay bonded debt. Other city revenue comes from such things as fees and charges for services.
A tax levy of $3,107,083 was certi-fied to Carver County on September 15th and will be upon taxable property in the City of Victoria in 2006 for the following purposes:
CITY OF VICTORIA
General Fund Levy $2,630,108
Diethelm Park Land Lease $92,133
GO Refunding Bonds of 2000 $38,817
GO Equipment Cert. of 2001 $20,770
GO Equipment Cert. of 2003 $6,353
GO Equipment Cert. of 2004 $72,488
GO 2002 Tax Increment Bonds $19,738
GO 2003 Tax Increment Bonds $94,500
GO 2004 Improvement Bonds $132,176
TOTAL Preliminary Levy $3,107,083
As can be seen, the tax levy is the sum of the General Fund Levy, special levies for bonded indebtedness, certifi-cates of indebtedness, and lease payments due other local governmental units. This 2006 proposed levy is an increase of 6.3% over that of 2005, when the total levy was $2,922,578.
*General Fund Levy of $2,630,108 supports basic city services such as streets, sewer, water, snowplowing, fire protection, administration, planning, police, attorneys, engineers, parks. It also provides for a transfer of $274,382 to the Field House budget.
*Diethelm Park Land Lease is for the park land that the city leases from itself acting as the Economic Development Authority. According to Finance Director Jylan Johnson, the Economic Develop-ment Authority issued Lease Revenue Bonds to fund the purchase of the Diethelm Park Land.
*General Obligation Refunding Bonds of 2000 are a compilation of old bond issues.
*General Obligation Equipment Cer-tificate of 2001 is for city trucks pur-chased that year.
*General Obligation Equipment Cer-tificate of 2003 is for the fitness and exer-cise equipment at the Field House.
*General Obligation Equipment Cer-tificate of 2004 is for two Public Works vehicles including a dump truck/snow-plow combination and pickup truck.
*General Obligation 2002 Tax Incre-ment Finance Bonds are for that part of the construction of the Downtown Vic-toria Bridge not covered by grant money.
*General Obligation 2003 Tax Incre-ment Finance Bonds are for city improve-ments for downtown development.
*General Obligation 2004 Improve-ment Bonds are for road reconstruction projects in the city for which the city pays 50%
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Based on the projections of the 2006 preliminary tax levy, as determined by City Finance Director Jylan Johnson, the tax impact on the median assessed tax valued home will not increase. For example, the city tax calculated on a $301,700 home was $1,236 for pay 2005; the estimated tax for pay 2006 on a $329,500 home will be $1,236.
The County Assessor's projected market value of properties will increase by 9.21%, according to Jylan: "The Carver County Assessor indicated that the city's median assessed tax valued home for pay 2005 was $301,700 and that value increased for pay 2006 to $329,500. This represents a 9.21% increase."
Jylan explained, "Those homes that realized a taxable market value increase greater than 9.21% may see a slight in-crease in city tax for 2006. Those that realized a taxable market value less than 9.21% may see a slight decrease in city tax for 2006."
According to the Finance Director, the city's tax on a $300,000 home in 2005 was $1,229; while the city tax on a $300,000 home in 2006 will be an esti-mated $1,125.
Many homes in Victoria now sell for $750,000. The city tax on that home is estimated to be $3,047 in 2006.
TAX RATE REDUCED FOR 2006
CITY PORTION OF TAXES TO DECREASE
Victoria City Councilmembers, es-pecially under the direction of Mayor Jerry Bohn, insisted that the city portion of the property tax statement decrease next year, even if property values are increased by the Carver County Assessor.
City Finance Director Jylan Johnson worked to that end in preparing the city's budget for 2006. When the preliminary budget was approved and accepted on September 8th, Mayor Bohn declared, "We have reduced the tax rate. If you house goes up 9% in market value, the city portion of your property taxes will still go down!"
Total taxable value of the City of Victoria in 2003 was approaching $600 million. The city's estimated taxable market value for 2004 was approaching $700,000. In 2005 the estimated taxable market value is approaching $800,000.
In providing information to the Gazette about tax rate, the Finance Director explained, "It should be noted that at the onset of the budget process, the Victoria City Council (through the Finance Committee) prudently established a goal to lower the city's tax impact rate from 40.98% (pay 2005) to an estimated 37.51% (pay 2006)."
She further explained, "By reducing the tax impact rate on the median assessed tax valued home in Victoria, although the home increases in value it will not realize an increase in the amount of city tax to be paid in 2006. The City of Victoria is very fortunate to have realized a 15% increase in its taxable market value (10% due to increase in property values and 5% due to growth). As a result of the growth, we are able to fund the increase in staffing, police coverage, and street maintenance … and still lower the city's tax impact rate to all its residents."
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