Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Budget Overview topic
No spam. Unsubscribe anytime.
Victoria reviews preliminary 2027 budget; staff proposes 3.31% levy increase
Summary
At a City of Victoria workshop, finance staff presented the preliminary 2027 budget with a proposed 3.31% city levy increase, projected $102 million in new taxable construction (excluding ~ $32M in TIF), and recommended transfers for streets, parks, and downtown repayment; council asked for contract details and signaled support to restore one FTE to the preliminary budget.
The Victoria City Council convened a workshop where Assistant City Manager and Finance Director Trisha Pollock presented the city's preliminary 2027 budget and calendar for subsequent budget hearings leading to final adoption in December.
“This is a starting point for our budget discussions,” Pollock told the council, outlining a six-meeting schedule and asking for direction and feedback rather than a vote. Staff described the city's combined incremental and priority-based budgeting approach and reiterated the city's fund-balance policy that targets at least 30% of the next year's operating expenditures in reserve.
Pollock said the preliminary levy increase is projected at about 3.31% and explained that new construction growth is expected to offset nearly all of that increase. Staff estimated roughly $102 million in new taxable construction would enter the rolls for taxes payable in 2027 (excluding about $32 million of apartment value captured inside a 15-year TIF district), generating an estimated $307,000 in new property tax capacity; the preliminary levy increase of about $324,000 would therefore leave roughly $17,000 to be absorbed by properties already on the rolls.
The presentation called out major cost drivers for 2027: personnel (a proposed 3% cost-of-living adjustment with up to 3% merit opportunities), an assumed 10% increase in health insurance premiums (pending final rates), and inflationary pressures on contractual services. Staff also noted a proposed $1 million transfer to a long-term street maintenance fund, a $325,000 first-year repayment to the water fund tied to a prior interfund loan for downtown West infrastructure, and a proposed $250,000 transfer to a park and trail improvement fund to pool funding for larger rehabilitation projects.
Pollock identified several specific commitments and clarifications: an anticipated city contribution of roughly $350,000 toward joint resurfacing of the Holy Family tennis courts; $150,000 included in 2027 toward the city's 2050 comprehensive plan (a three-year $250,000 initiative); and ongoing operating costs from the new fire station—estimated at about $52,000 annually. Staff also proposed postponing one capital-equipment transfer (related to ladder-truck reserves) to reduce levy pressure while increasing the capital facilities reserve to support a cold-storage facility at the public-works campus.
Council members asked for additional detail on several county-provided contracts—assessment, prosecution, and police services—and staff agreed to provide contract values and supporting context. Pollock emphasized the preliminary nature of the numbers and noted further refinement will occur during the July and August hearings, including a fuller discussion of fees and the max tax levy in August and a final max-levy adoption in September.
The council indicated preliminary consensus to restore one previously removed FTE (related to parks and recreation) to the preliminary budget and directed staff to continue evaluating additional staffing needs as part of the max-levy discussion.
What happens next: department-head presentations are scheduled in July, staff will return in August with fee proposals and updated numbers, and the council will act on the max tax levy later in the fall before final adoption in December.
