Victoria, Texas Development News
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City Council Proclaims July as Parks and Recreation Month, Praises Department's Efforts
The City Council formally recognized the Parks and Recreation Department for their integral role in the community and for their efforts during the July 4th festivities. The proclamation highlighted how parks and recreation promote mental and physical well-being, encourage active lifestyles, contribute to economic prosperity through tourism and business attraction, and preserve ecological beauty. It also acknowledged July as Parks and Recreation Month nationwide. The Parks and Recreation team expressed gratitude for the recognition, emphasizing their staff's dedication to maintaining city facilities and providing programs that enhance quality of life. They thanked the council for their support and investment in parks and recreation.
Victoria Pursues $12 Million State Grant for Water Supply Enhancement Project
The City of Victoria is preparing an application for a new Water Supply and Infrastructure Grant (WSIG) from the Texas Water Development Board (TWDB). This grant program, established by the 89th legislative session, provides one-time funding and is highly competitive. The city aims to secure $12 million to fund two construction phases of a project that will interconnect off-channel reservoir ponds. This interconnection aims to improve access to the city's water supply by allowing water to be pumped into all reservoirs simultaneously and balanced, thereby increasing raw water storage capacity by 2,000 acre-feet and preventing water loss downstream. The project is a priority identified in the water feasibility study, and while no cost share is required by the grant, the city will fund the engineering costs from its fiscal year 27 budget, enhancing the application's competitiveness. Should the grant not be funded, the project will be incorporated into future city budgets. Awards are anticipated starting in the fall of 2026. The application is due by the end of the current month.
Victoria Council Approves Budget Amendment for Mowing, Negotiations, and New Trucks
The City Council considered a budget amendment totaling $2,144,921.73 for the fiscal year 2025-2026. The amendment covers three primary needs: $181,734.01 for the city's drainage mowing contract, $69,750 for specialized services supporting the collective bargaining process, and $946,718.86 for the purchase of two sideload trucks. The trucks were approved previously but arrived earlier than expected, necessitating the reallocation of funds to the current fiscal year for payment. The net new budget authority is $1.2 million, with $946,000 transferred from the environmental fund to the vehicle and equipment services fund. Council members inquired about the ongoing need for negotiation services funds and confirmed the city's readiness to accept early delivery of the trucks. The amendment passed on first reading.
Victoria Housing Authority and City Finalize Updated Payment In Lieu Of Taxes Agreement
The City Council approved a corporate agreement with the Victoria Housing Authority for a Payment In Lieu Of Taxes (PILT) pilot project. This agreement updates an outdated 1973 PILT, which set a fixed annual amount of $2,551 for 92 units. The new agreement establishes a formula-based PILT, calculated as 10% of shelter rent (rent minus utilities). This formula is required by HUD for housing authorities to make payments in lieu of property taxes on their tax-exempt properties, protecting cities from losing tax revenue. For the 2025 tax year, the Housing Authority paid $30,552 under the previous formula, which was significantly more than the 1973 amount. The updated PILT is necessary for the Housing Authority to issue its own bonds and apply for low-income housing tax credits as part of its financial repositioning plan. This ensures the city receives a fair contribution for services despite the Housing Authority's tax-exempt status.
Victoria Council Debates Stormwater Fee Structure, Religious Exemptions
The City Council discussed options for implementing a proposed stormwater utility fee, following public feedback from a town hall meeting. Key feedback included concerns about affordability, fairness, exemptions for religious institutions, and the program's start date. The proposed program is estimated to generate $2.6 million annually, including a $5 flat fee for residential properties and a non-residential rate calculated based on impervious cover. Mandatory exemptions apply to state-owned and higher education facilities, while city, county, and school district exemptions are discretionary. The council discussed two main options regarding religious institutions: a 100% exemption (reducing revenue by $105,000) or a 50% exemption (reducing revenue by $52,000). They also considered adjusting the fee structure: maintaining the $5 flat fee, lowering it to $4 (a $531,000 revenue reduction), or implementing a tiered residential system (reducing revenue by $188,000-$293,000 depending on religious exemptions). The tiered system, based on impervious cover below or above 3,200 sq ft, was noted to have higher administrative burdens. Many council members favored exempting religious institutions at 100% and keeping the $5 flat fee due to administrative simplicity. The start date of January 1, 2027, was proposed to allow time for program setup and budgeting. The council also noted that existing city utility rates have not increased since 2019, and solid waste rates haven't changed since the 1980s (excluding additional fees added later). The fee is specifically for stormwater infrastructure improvements, estimated at $130 million.
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The Victoria News archive
City of Victoria City Council Meeting 7.7.26
Special City Council Work Session
City of Victoria Special City Council Budget Work Session 6.26.26
City of Victoria Planning Commission Meeting 6.18.26
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