Victoria workshop previews 2026 fee changes and signals preliminary 9.96% max tax levy

Victoria City Council workshop — Staff outlined proposed changes to the City of Victoria’s 2026 fees and charges and presented a preliminary general fund budget that, as discussed in the workshop, would support a proposed maximum tax levy increase of 9.96%.

The council heard a revenue overview from Trish Pollock, assistant city manager and finance director, who said roughly 82% of the city’s revenues come from property taxes and about 18% from charges and services, including permits and facility rentals. ‘‘We’re budgeting 144 new homes for 2026,’’ Pollock said, noting the number is the same as the 2025 projection but that average permit values have trended higher, increasing projected permit revenue.

Why it matters: the preliminary max levy is a policy ceiling used to set the city’s tax‑capacity filing; it is not a direct one-to-one increase in every homeowner’s bill. Pollock showed updated county valuation and fiscal-disparity numbers that reduce the city’s projected tax rate impact even with the higher levy.

Council discussion centered on revenue assumptions and several fee proposals. On interest earnings, council members urged conservative projections given expectations for Federal Reserve rate cuts; Pollock said she budgets interest conservatively and will revisit the estimate. On plan-check fees, staff reminded the council the city previously lowered those fees to pass operational savings to builders in support of housing affordability.

Several line-item fee changes were detailed: increases to business subsidy application fees and related escrows to prepay municipal-advisor work by Northland; a new outdoor-dining public-parking rental fee tied to a recent ordinance; increases to zoning‑compliance fees; and a new early‑grading agreement charge. Pollock said water, sewer and storm‑water enterprise fees will be discussed in November.

Parks and recreation adjustments drew robust questioning. Staff proposed new youth drop‑in passes (children under 11) and a $5 skate‑rental pilot at the Victoria Recreation Center. Miss Hardy (staff) told council the front‑desk parks staff would manage rentals and that a business plan and more detailed cost estimates would be returned to council. ‘‘We will bring that information back with the larger discussion,’’ she said.

Council member Roberts asked for clarification on a proposed $25 one‑day consumption and display permit. Staff member Claudia explained the permit allows volunteer groups (for example, the Lions) to have members bring hard alcohol without charging for it; staff said the authority for the fee amount is set by state statute and the city historically did not charge for that permit.

On the levy: Pollock presented a revised max tax levy proposal of 9.96% and explained the change includes items such as training, a potential travel expense if the city manager is elected to a Government Finance Officers Association executive board seat, an increase in the Lake Mitaka Conservation District levy (an $8,459 increase staff said was a reinstatement to pre‑2021 levels), estimated overtime shifts from a federal pay exemption change and trail‑maintenance needs. With updated county valuation inputs, Pollock said the tax rate is projected to be flat compared to 2025, though homeowners will see the market-value changes applied by the county.

The council generally indicated comfort with the direction of the proposed fee schedule and expressed preliminary consensus to proceed with a 9.96% max levy for certification later in the year. Pollock and staff reminded council that the final levy must be certified by Sept. 30, that the adoption of the fee schedule occurs by ordinance in December and that public hearings will provide another opportunity for public input.

What’s next: Staff will return with more detailed cost and business-plan information on the skate-rental proposal, additional discussion and analysis on park-dedication in-lieu fee options and constraints, and any refined revenue assumptions requested by council. The June preliminary levy will be revisited ahead of the formal max‑levy certification in September.