Victoria City Council — Transcript

Monday, August 24, 2026

Proposed 2027 Fees and Charges

Parkland Dedication Fees Policy

Utility Franchise Fee Fund Policy

Preliminary 2027 General Fund Budget and Levy Projections

Southwest Transit Service Funding

Votes (2)

Discussion of Proposed 2027 Fees and Charges and Preliminary 2027 General Fund Budget and Levy Projections

No formal action taken; staff directed to conduct further analysis on Parkland dedication fees (including additional market cities and legal counsel on statutory limits) and to prepare for a future workshop discussion on Utility Franchise Fee Fund policy. Council expressed consensus to proceed with the proposed 4.85% max tax levy increase for certification.

Dissent: While there was spirited debate on various fee adjustments and policy directions, no formal dissent was recorded as this was a workshop for discussion and guidance.

The workshop covered a broad range of financial topics for the city of Victoria. Staff presented proposed fee adjustments across community development, miscellaneous licenses, public works, the Victoria Recreation Center, and Park and Rec, with many fee structures revised for simplicity, consistency, or cost recovery. A significant portion of the discussion focused on Parkland dedication fees, with council members advocating for increases, particularly for multi-family, industrial, and commercial developments, to better fund park infrastructure, while also seeking legal guidance on statutory limits. The future of the Utility Franchise Fee Fund, which is accumulating a substantial balance, was debated, with calls for either identifying new public purposes or considering reductions. Finally, the preliminary 2027 General Fund Budget and a proposed max tax levy increase of 4.85% were detailed, including staffing changes, fire department wage adjustments, potential special election costs, and the decision to remove the city's subsidy for Southwest Transit, leveraging available alternatives and potential county funding.

Adjournment of Workshop

Motion carries, adjourned.

Moved by Council Member [1:2:38] · Seconded by Council Member [1:2:40]

Following the completion of the agenda items for the workshop, a motion was made to adjourn the meeting.

Notable Quotes (6)

Our sources of revenue are primarily property taxes, which are 83% or 8.2 million of our total revenues of 9.8 million. The charges and services include permit revenue, park program fees, and facility rentals that make up 15% or 1.5 million of the total revenues.

Assistant City Manager and Finance Director Trisha Pollock [0:2:12]
Discussion of Proposed 2027 Fees and Charges and Preliminary 2027 General Fund Budget and Levy Projections

I mean my my thought is we need to be more in the zone of Eden Prairie, Rogers, Corcoran, Chanhassen, Shakopee. I mean the It's It's one thing to look at the averages of these communities. It's all It's a completely different um view to look at the utilization. I mean we we have so much more of activity going on here and we have so much more of um parks that we need to pay for.

Council Member [0:17:10]
Discussion of Proposed 2027 Fees and Charges and Preliminary 2027 General Fund Budget and Levy Projections

My understanding was that there was a court case with Burnsville that essentially set this I'll use in quotes a ceiling for what is acceptable. And so, we wanted to put the Burnsville information there just for visibility into what that ceiling would look like.

Ms. Hardy [0:19:35]
Discussion of Proposed 2027 Fees and Charges and Preliminary 2027 General Fund Budget and Levy Projections

I'm a little uncomfortable collecting fees if we don't have a purpose for them. Um, I'm feeling like this is something we might want to revisit once we've once we've been able to service our debt that we owe.

Mayor [0:35:05]
Discussion of Proposed 2027 Fees and Charges and Preliminary 2027 General Fund Budget and Levy Projections

I will note that um the franchise fees are allowed for any public purpose. So, as you look for alternative funding sources, you heard earlier 83% of our property taxes or our revenues are property taxes. So, um if you're looking at um having um this is essentially a tax, a tax that is collected not only by property owners, but everybody even those who don't pay property taxes would be subject to paying these fees.

Ms. Hardy [0:39:53]
Discussion of Proposed 2027 Fees and Charges and Preliminary 2027 General Fund Budget and Levy Projections

On Southwest Transit, if the county decides that they will continue to fund the service for Victoria, um and pick up our share of the cost... then that service would continue in the similar fashion as Transit Link... In place of that would be the county paying that subsidy for us. And so, if the county decides not to do that, it is my understanding that Southwest Transit will cease their on-demand service here in Victoria.

Ms. Hardy [0:52:28]
Discussion of Proposed 2027 Fees and Charges and Preliminary 2027 General Fund Budget and Levy Projections

Ordinances & Resolutions (7)

Proposed 2027 fees and chargesOther

The primary subject of discussion for revenue adjustments.

Preliminary 2027 general fund budget and levy projectionsOther

The primary subject of discussion for financial planning.

International Building CodeOther

Legislation that sets some city fees.

Minnesota state statuteOther

Sets the council candidacy application fee and dictates special election for Senate vacancy.

2027 fee scheduleOther

The schedule detailing the changes to various city fees.

Utility franchise fee agreementOther

Agreement that sunsets after 20 years, needing renegotiation in 2036.

Laserfiche upgrade projectOther

A project for which $15,000 was removed from the 2027 budget.

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