2014.02.18 Work Session Packet (2nd)4141 Douglas Drive North • Crystal, Minnesota 55422-1696
CITY of Tel: (763) 531-1000 • Fax: (763) 531-1188 • www.crystalmn.gov
CRYSTAL
Posted: February 13, 2014
CRYSTAL CITY COUNCIL
SECOND WORK SESSION AGENDA
Tuesday, February 18, 2014
To immediately follow the Regular City Council Meeting
Conference Room A
Pursuant to due call and notice given in the manner prescribed by Section 3.01 of the City
Charter, the second work session of the Crystal City Council was held at p.m. on
Tuesday, February 18, 2014 in Conference Room A located at 4141 Douglas Drive, Crystal,
Minnesota.
I. Attendance
Council members
Selton
Adams
Budziszewski
Deshler
Hoffmann
Libby
Peak
Staff
Norris
Therres
Norton
Hansen
Mathisen
Revering
Serres
II. Agenda
The purpose of the second work session is to discuss the following agenda items:
■ Continue discussion of financing Crystal's share of emergency water supply
■ GreenStep Cities
■ Liquor license fees
■ Commission Liaisons reports/updates
III. Adjournment
The work session adjourned at p.m.
Auxiliary aids are available upon request to individuals with disabilities by calling the City Clerk at (763)
531-1145 at least 96 hours in advance. TTY users may call Minnesota Relay at 711 or 1-800-627-3529.
Memorandum
16RYSTAL
DATE: February 12, 2014
TO: Mayor and City Council
Anne Norris, City Manager
FROM: Charles Hansen, Finance Director
SUBJECT: Discuss Financing Options for JWC Emergency Water Supply
Background:
We have been discussing options for financing Crystal's share of the Joint Water
Commission (JWC) project to add wells as an emergency water supply backup. Two
financing options have been presented by staff and the City Council requested that
additional options be developed and presented for discussion.
All of the budget options presented go out 10 years instead of the 5 years we normally
present in the annual budget. Ten years is a more realistic time frame to consider
when financing a project of this size.
2014 Adopted Budget (Attachment A)
The 2014 Adopted Budget didn't include the emergency water supply in capital outlay
or any form of a plan to finance it. We weren't sure of the cost of the wells, timing of
the project, or if it would be financed by cash on hand or some kind of debt. We
planned to amend the budget after decisions were make on these factors.
Attachment A still doesn't include the emergency water supply project, but is intended
to establish a baseline 10 year budget for comparison to the other options. Only the
2014 column in Attachment A is the same as in the adopted budget. In the normal
budget process, we focus primarily on the year for which the budget is adopted. The
succeeding four years are estimates that we don't put great emphasis on.
In this exercise, projecting cash on hand for the next ten years is the purpose and so
the following changes to 2015 through 2018 are made:
• An inflation factor is applied to the minor revenues. This doesn't generate much
additional revenue, but everything counts when we are facing a cash deficit.
• The JWC Capital line is adjusted to the JWC's current plan (excluding the wells).
The following assumptions are made for the years 2019 through 2023:
• Rates that Crystal will pay to the JWC for water will increase at 2.8% per year. The
City of Minneapolis hasn't provided the JWC with future rate increase. We are
assuming Minneapolis rates will increase at 2.8% per year.
• JWC capital outlay will be $350,000 per year from 2019 through 2023. This is the
average of their capital outlays from 2014 through 2018, excluding the wells.
• Crystal's water capital outlay will be $450,000 per year from 2019 through 2023.
This is the average of the capital outlays from 2014 through 2018
• Inflation on everything else will run at 3% per year from 2019 through 2023.
Cash and investments at year-end goes negative in 2021 and continues to decrease.
We aren't generating enough positive cash flow from operations to pay for capital
outlays. The year 2016 has no rate increase and 2018 has a smaller than normal rate
increase. These smaller increases were sufficient during the five year time period of
the budget. If all years after 2015 have a rate increase of $0.15 per unit, the decline in
cash and investments continues, but doesn't reach a deficit during the ten years.
2014 Adopted Budget and paying cash for the emergency wells (Attachment B)
This option is the same as Attachment A except that it makes a cash payment of
$1,215,000 for the emergency wells in 2014. No rate increases are made beyond
those in Attachment A. Cash and investments at year-end goes negative in 2017 and
continues to decrease. At the end of 2023, the cash and investments deficit will be
about $2,300,000.
2014 Adopted Budget and paying cash for the emergency wells with a fixed
charge to replenish cash (Attachment C)
This option is the same as Attachment B except that it raises rates to pay for the
emergency wells. A $3 per quarter fixed fee is added to the utility bills of all 7,800 water
customers. This starts in the 3rd quarter of 2014 and raises $93,600 per year. The total
new revenue raised from 2014 through 2023 is $889,200. At the end of 2023, the cash
and investments deficit will be about $1,300,000. Increased investment income
provides the balance of the $1,000,000 improvement from Attachment B.
2014 Adopted Budget and paying cash for the emergency wells with a fixed
charge and unit rate increases to replenish cash (Attachment D)
If in addition to the fixed fee shown in Attachment C, all years after 2015 have a rate
increase of $0.15 per unit of water used, the decline in cash and investments continues,
reaching a deficit about $90,000 at the end of ten years.
2014 Adopted Budget with paying half cash and half internal loan for the
emergency wells with a fixed charge to replenish cash (Attachment E)
This option takes out an internal loan of $600,000 from another fund to help pay for the
emergency wells. The loan (Attachment 1) is structured with payments from 2015
through 2023 and an interest rate of 2%. If the loan was made interest free, it would
only save about $61,600 over the ten years.
The total new revenue raised from 2014 through 2023 is $889,200. At the end of 2023,
the cash and investments deficit will be about $1,300,000.
2014 Adopted Budget with Paying half Cash and half internal loan for the
Emergency Wells with a fixed charge and unit rate increases to replenish cash
(Attachment F)
If in addition to the fixed fee shown in Attachment E, all years after 2015 have a rate
increase of $0.15 per unit, the decline in cash and investments continues, reaching a
deficit in the tenth year.
Conclusion:
When the Adopted Budget is extended out ten years, it shows a Water Fund that isn't
generating enough positive cash flow from operations to pay for capital outlay. Adding
the $1,200,000 emergency well to the capital project list makes the deficit in cash and
investments is unmanageable if there are no additional rate increases.
The City Council expressed interest in adding an emergency well fixed charge of $1.00
per month, per customer to the utility bill. While this additional revenue helps, it isn't
enough to overcome the negative cash flow from capital projects. It will be necessary
to consider either an emergency well fixed charge of $2.50 per month or an increase in
the water unit charge in order to maintain a positive balance in cash and investments.
Well construction
Internal Loan
Rate increases
compared to Adopted
Fixed Charge
Per unit of water
Cash Balance in 2023
Summary of Attachments A through F
A B C D E F
No Yes Yes Yes Yes Yes
No No No No Yes Yes
No No
-$801,290 -$2,340,826
Yes
Yes
Yes
Yes
$1 per month
$1 per month
$1 per month
$1 per month
No
Yes
No
Yes
-$1,332,913
-$86,806
-$1,317,600
-$71,494
Attachment 1
Emergency Wells Debt Structure
$600,000 Internal Loan
Term: 10 years
2% interest rate Total
Debt
Year
Principal
Interest
Service
Balance
2014
0
0
0
600,000
2015
62,000
12,000
74,000
538,000
2016
63,000
10,760
73,760
475,000
2017
64,000
9,500
73,500
411,000
2018
65,000
8,220
73,220
346,000
2019
66,000
6,920
72,920
280,000
2020
67,000
5,600
72,600
213,000
2021
68,000
4,260
72,260
145,000
2022
70,000
2,900
72,900
75,000
2023
75,000
1,500
76,500
0
Total
600,000
61,660
661,660
WATER UTILITY RATE STUDY
2014 Adopted Budget
PROFIT & LOSS
2013
2014
2015
2016
2017
2018
2019
2020
2021
2022
2023
REVENUES
600,000
600,000
600,000
600,000
600,000
600,000
600,000
600,000
600,000
Water usage charges
2,600,000
2,760,000
2,880,000
2,880,000
2,970,000
3,000,000
3,090,000
3,180,000
3,270,000
3,360,000
3,450,000
Fixed service charges
150,000
150,000
155,882
155,882
160,294
161,765
166,176
170,588
175,000
179,412
183,824
Penalties
57,000
60,000
61,500
63,038
64,613
66,229
68,216
70,262
72,370
74,541
76,777
Special Assessments
60,000
60,000
61,500
63,038
64,613
66,229
68,216
70,262
72,370
74,541
76,777
JWC reimbursement
12,000
12,000
12,000
12,000
12,000
12,000
12,000
12,000
12,000
12,000
12,000
Investment Income
27,000
23,300
33,854
38,865
36,162
33,644
24,044
14,255
4,617
-4,933
-14,461
Miscellaneous
57,000
57,000
58,425
59,886
61,383
62,917
64,805
66,749
68,751
70,814
72,938
State testing fee billed
50,000
50,000
51,250
52,531
53,845
55,191
56,8461
58,552
60,308
62,118
63,981
3,013,000
3,172,300
3,314,412
3,325,240
3,422,911
3,457,974
3,550,303
3,642,668
3,735,417
3,828,493
3,921,837
TOTAL REVENUES
EXPENSES
Salaries & Wages
230,449
235,494
241,381
247,416
253,601
259,941
267,740
275,772
284,045
292,566
301,343
Fringe Benefits
81,183
89,084
93,538
98,215
103,126
108,282
111,531
114,877
118,323
121,873
125,529
JWC - Operations
1,908,730
2,013,304
2,069,677
2,127,627
2,187,201
2,248,443
2,311,399
2,376,118
2,442,650
2,511,044
2,581,353
JWC - Capital
229,500
358,225
364,500
725,760
90,450
128,250
350,000
350,000
350,000
350,000
350,000
JWC 2 cents/1,000 gal. fee
12,000
12,000
12,000
12,000
12,000
12,000
12,000
12,000
12,000
12,000
12,000
Professional/Contractual
94,568
97,755
100,688
103,708
106,820
110,024
113,325
116,725
120,226
123,833
127,548
Utilities
4,200
4,140
4,264
4,392
4,524
4,660
4,799
4,943
5,092
5,244
5,402
Repair & Maintenance
38,100
37,800
38,934
40,102
41,305
42,544
43,821
45,135
46,489
47,884
49,320
Supplies
50,500
50,500
52,015
53,575
55,183
56,838
58,543
60,300
62,109
63,972
65,891
Communications & Printing
7,600
3,500
3,605
3,713
3,825
3,939
4,057
4,179
4,305
4,434
4,567
Insurance & Training
16,265
12,703
13,084
13,477
13,881
14,297
14,726
15,168
15,623
16,092
16,575
Depreciation
183,676
183,470
190,000
195,000
200,000
210,000
210,000
210,000
210,000
210,000
210,000
Admin. Service Charge
117,472
118,451
121,412
124,448
127,559
130,748
134,670
138,710
142,872
147,158
151,572
2,974,243
3,216,426
3,305,098
3,749,434
3,199,474
3,329,967
13,636,611
3,723,927
3,813,732
3,906,099
4,001,100
TOTAL EXPENSES
NET INCOME or -LOSS
38,757
-44,126
9,313
-424,194
223,437
128,007
-86,308
-81,259
-78,316
-77,606
-79,263
ENDING FUND BALANCE
7,494,8881
7,450,76217,460,07617,035,8821
7,259,319
7,387,326
7,301,018
7,219,759
7,141,443
7,063,8371
6,984,574
2,163,732
2,262,611
2,256,955
1,943,269
1,446,496
1,121,455
801,462
475,154
153,895
-164,421
-482,027
CASH FLOW
Cash & Investments, Beg. of Year
Net income
38,757
-44,126
9,313
-424,194
223,437
128,007
-86,308
-81,259
-78,316
-77,606
-79,263
Add back Depreciation
183,676
183,470
190,000
195,000
200,000
210,000
210,000
210,000
210,000
210,000
210,000
Deduct Capital Outlay
123,554
145,000
513,000
267,579
748,478
658,000
450,000
450,000
450,000
450,000
450,000
2,262,611
2,256,955
1,943,269
1,446,496
1,121,455
801,462
475,154
153,895
-164,421
-482,027
-801,290
Cash & Investments, End of Year
Retail Rate per 1,000 gallons, Tier 1
4.05
$4.30
$4.50
$4.50
$4.65
$4.70
$4.85
$5.00
$5.15
$5.30
$5.45
Retail Rate per 1,000 gallons, Tier 2
4.45
$4.70
$4.90
$4.90
$5.05
$5.10
$5.25
$5.40
$5.55
$5.70
$5.85
Retail Rate per 1,000 gallons, Tier 3
4.85
$5.10
$5.30
$5.30
$5.45
$5.50
$5.65
$5.80
$5.95
$6.10
$6.25
Rate increase from prior year
2.11%
5.15%
3.92%
0.00%
2.83%
0.92%
2.73%
2.65%
2.59%
2.52%
2.46%
Interest rate actual/projected
Crystal average rate
Unit sales (1,000 gallons)
JWC operating rate, /1,000 gallons
JWC capital rate, per 1,000 gallons
Units purchased from JWC
1.00% 1.00% 1.50% 2.00% 2.50% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00%
$4.33
$4.601
$4.80
$4.80
$4.95
$5.00
$5.15
$5.30
$5.45
$5.60
$5.75
600,000
600,0001
600,000
600,000
600,000
600,000
600,000
600,000
600,000
600,000
600,000
$2.75
$0.33
$3.36
$0.60
$3.45
$0.61
$3.55
$1.21
$3.65 $3.75i
$0.15 $0.21
$3.85
$0.58
$3.96
$0.58
$4.07 $4.19
$0.58 $0.58
$4.30
$0.58
693,000
600,000
600,000
600,000
600,000 600,0001
600,000
600,000
600,000 600,000
600,000
Attachment A
WATER UTILITY RATE STUDY
2014 Adopted Budget with paying cash for emergency wells and updated JWC capital
Same Kaie increases
as Haopiea
tsua ei
PROFIT & LOSS
2013
2014
2015
2016
2017
2018
2019
2020
2021
2022
2023
REVENUES
600,000
600,000
600,000
600,000
600,000
600,000
Water usage charges
2,600,000
2,760,000
2,880,000
2,880,000
2,970,000
3,000,000
3,090,000
3,180,000
3,270,000
3,360,000
3,450,000
Fixed service charges
150,000
150,000
155,882
155,882
160,294
161,765
166,176
170,588
175,000
179,412
183,824
Penalties
57,000
60,000
61,500
63,038
64,613
66,229
68,216
70,262
72,370
74,541
76,777
Special Assessments
60,000
60,000
61,500
63,038
64,613
66,229
68,216
70,262
72,370
74,541
76,777
JWC reimbursement
12,000
12,000
12,000
12,000
12,000
12,000
12,000
12,000
12,000
12,000
12,000
Investment Income
27,000
23,300
15,629
14,201
4,715
-5,036
-15,797
-26,781
-37,650
-48,467
-59,302
Miscellaneous
57,000
57,000
58,425
59,886
61,383
62,917
64,805
66,749
68,751
70,814
72,938
State testing fee billed
50,000
50,000
51,250
52,531
53,845
55,191
56,846
58,552
60,308
62,118
63,981
3,013,000
3,172,300
3,296,187
3,300,575
3,391,463
3,419,294
3,510,462
3,601,6321
3,693,150
3,784,958
3,876,996
TOTAL REVENUES
EXPENSES
Salaries & Wages
230,449
235,494
241,381
247,416
253,601
259,941
267,740
275,772
284,045
292,566
301,343
Fringe Benefits
81,183
89,084
93,538
98,215
103,126
108,282
111,531
114,877
118,323
121,873
125,529
JWC - Operations
1,908,730
2,013,304
2,069,677
2,127,627
2,187,201
2,248,443
2,311,399
2,376,118
2,442,650
2,511,044
2,581,353
JWC - Capital
229,500
358,225
364,500
725,760
90,450
128,250
350,000
350,000
350,000
350,000
350,000
JWC - emergency wells
1,215,000
JWC 2 cents/1,000 gal. fee
12,000
12,000
12,000
12,000
12,000
12,000
12,000
12,000
12,000
12,000
12,000
Professional/Contractual
94,568
97,755
100,688
103,708
106,820
110,024
113,325
116,725
120,226
123,833
127,548
Utilities
4,200
4,140
4,264
4,392
4,524
4,660
4,799
4,943
5,092
5,244
5,402
Repair & Maintenance
38,100
37,800
38,934
40,102
41,305
42,544
43,821
45,135
46,489
47,884
49,320
Supplies
50,500
50,500
52,015
53,575
55,183
56,838
58,543
60,300
62,109
63,972
65,891
Communications & Printing
7,600
3,500
3,605
3,713
3,825
3,939
4,057
4,179
4,305
4,434
4,567
Insurance & Training
16,265
12,703
13,084
13,477
13,881
14,297
14,726
15,168
15,623
16,092
16,575
Depreciation
183,676
183,470
190,000
195,000
200,000
210,000
210,000
210,000
210,000
210,000
210,000
Admin. Service Charge
117,472
118,451
121,412
124,448
127,559
130,748
134,670
138,710
142,872
147,158
151,572
2,974,243
4,431,426
3,305,098
3,749,434
3,199,474
3,329,967
3,636,611
3,723,927
3,813,732
3,906,099
4,001,100
TOTAL EXPENSES
NET INCOME or -LOSS
38,757
-1,259,126
-8,912
-448,859
191,990
89,327
-126,149
-122,295
-120,583
-121,141
-124,104
ENDING FUND BALANCE
7,494,8881
6,235,762
6,226,851
5,777,992
5,969,982
6,059,309
5,933,1601
5,810,8661
5,690,2831
5,569,1421
5,445,038
2,163,732
2,262,611
1,041,955
710,044
188,606
-167,882
-526,555
-892,704
-1,254,998
-1,615,581
-1,976,722
CASH FLOW
Cash & Investments, Beg. of Year
Net income
38,757
-1,259,126
-8,912
-448,859
191,990
89,327
-126,149
-122,295
-120,583
-121,141
-124,104
Add back Depreciation
183,676
183,470
190,000
195,000
200,000
210,000
210,000
210,000
210,000
210,000
210,000
Deduct Capital Outlay
123,554
145,000
513,000
267,5791
748,4781
658,000
450,0001
450,000
450,000
450,000
450,000
2,262,611
1,041,955
710,044
188,606
-167,882
-526,555
-892,704
-1,254,998
-1,615,581
-1,976,722
-2,340,826
Cash & Investments, End of Year
Retail Rate per 1,000 gallons, Tier 1
4.05
$4.30
$4.50
$4.50
$4.65
$4.70
$4.85
$5.00
$5.15
$5.30
$5.45
Retail Rate per 1,000 gallons, Tier 2
4.45
$4.70
$4.90
$4.90
$5.05
$5.10
$5.25
$5.40
$5.55
$5.70
$5.85
Retail Rate per 1,000 gallons, Tier 3
4.85
$5.10
$5.30
$5.30
$5.45
$5.50
$5.65
$5.80
$5.95
$6.10
$6.25
Rate increase from prior year
2.11%
5.15%
3.92%
0.00%
2.83%
0.92%
2.73%
2.65%
2.59%
2.52%
2.46%
Interest rate actual/projected
Crystal average rate
Unit sales (1,000 gallons)
JWC operating rate, /1,000 gallons
JWC capital rate, per 1,000 gallons
Units purchased from JWC
1.00% 1.00% 1.50% 2.00% 2.50% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00%
$4.33
$4.60
$4.80
$4.80
$4.95
$5.00
$5.15
$5.30
$5.45
$5.60
$5.75
600,000
600,000
600,000
600,000
600,000
600,000
600,000
600,000
600,000
600,000
600,000
$2.75
$0.33
$3.36
$0.60
$3.451
$0.611
$3.55
$1.21
$3.65
$0.15
$3.75
$0.21
$3.85
$0.58
$3.96
$0.58
$4.07
$0.58
$4.19
$0.58
$4.30
$0.58
693,000
600,0001
600,0001
600,0001
600,0001
600,0001
600,0001
600,0001
600,0001
600,0001
600,000
Attachment B
WATER UTILITY RATE STUDY
2014 Adopted Budget with paying cash for emergency wells and updated JWC capital
Lmergency
well
tlxea cnar
es In aaanion to rate Increases
In ine Haoptea rsua et
PROFIT & LOSS
2013
2014
2015
2016
2017
20181
2019
2020
2021
2022
2023
REVENUES
600,000
600,000
600,000
600,000
Water usage charges
2,600,000
2,760,000
2,880,000
2,880,000
2,970,000
3,000,000
3,090,000
3,180,000
3,270,000
3,360,000
3,450,000
Fixed service charges
150,000
150,000
155,882
155,882
160,294
161,765
166,176
170,588
175,000
179,412
183,824
Ermergency well fixed charge
46,800
93,600
93,600
93,600
93,600
93,600
93,600
93,600
93,600
93,600
Penalties
57,000
60,000
61,500
63,038
64,613
66,229
68,216
70,262
72,370
74,541
76,777
Special Assessments
60,000
60,000
61,500
63,038
64,613
66,229
68,216
70,262
72,370
74,541
76,777
JWC reimbursement
12,000
12,000
12,000
12,000
12,000
12,000
12,000
12,000
12,000
12,000
12,000
Investment Income
27,000
23,300
16,331
17,023
10,653
5,075
-2,573
-10,353
-17,921
-25,339
-32,671
Miscellaneous
57,000
57,000
58,425
59,886
61,383
62,917
64,805
66,749
68,751
70,814
72,938
State testing fee billed
50,000
50,000
51,250
52,531
53,845
55,191
56,846
58,552
60,308
62,118
63,981
3,013,000
3,219,100
3,390,489
3,396,997
3,491,002
3,523,006
3,617,286
3,711,660
3,806,479
3,901,687
3,997,226
TOTAL REVENUES
EXPENSES
Salaries & Wages
230,449
235,494
241,381
247,416
253,601
259,941
267,740
275,772
284,045
292,566
301,343
Fringe Benefits
81,183
89,084
93,538
98,215
103,126
108,282
111,531
114,877
118,323
121,873
125,529
JWC- Operations
1,908,730
2,013,304
2,069,677
2,127,627
2,187,201
2,248,443
2,311,399
2,376,118
2,442,650
2,511,044
2,581,353
JWC - Capital
229,500
358,225
364,500
725,760
90,450
128,250
350,000
350,000
350,000
350,000
350,000
JWC - emergency wells
1,215,000
JWC 2 cents/1,000 gal. fee
12,000
12,000
12,000
12,000
12,000
12,000
12,000
12,000
12,000
12,000
12,000
Professional/Contractual
94,568
97,755
100,688
103,708
106,820
110,024
113,325
116,725
120,226
123,833
127,548
Utilities
4,200
4,140
4,264
4,392
4,524
4,660
4,799
4,943
5,092
5,244
5,402
Repair & Maintenance
38,100
37,800
38,934
40,102
41,305
42,544
43,821
45,135
46,489
47,884
49,320
Supplies
50,500
50,500
52,015
53,575
55,183
56,838
58,543
60,300
62,109
63,972
65,891
Communications & Printing
7,600
3,500
3,605
3,713
3,825
3,939
4,057
4,179
4,305
4,434
4,567
Insurance & Training
16,265
12,703
13,084
13,477
13,881
14,297
14,726
15,168
15,623
16,092
16,575
Depreciation
183,676
183,470
190,000
195,000
200,000
210,000
210,000
210,000
210,000
210,000
210,000
Admin. Service Charge
117,472
118,451
121,412
124,448
127,559
130,748
134,670
138,710
142,872
147,158
151,572
TOTAL EXPENSES
2,974,243
4,431,426
3,305,098
3,749,434
3,199,474
3,329,967
3,636,611
3,723,927
3,813,732
3,906,099
4,001,100
NET INCOME or -LOSS
38,757
-1,212,326
85,390
-352,437
291,528
193,039
-19,326
-12,267
-7,254
-4,412
-3,873
ENDING FUND BALANCE
7,494,8881
6,282,562
6,367,953
6,015,516
6,307,0441
6,500,083
6,480,7581
6,468,4911
6,461,2371
6,456,8251
6,452,951
2,163,732
2,262,611
1,088,755
851,146
426,130
169,180
-85,781
-345,106
-597,373
-844,627
-1,089,039
CASH FLOW
Cash & Investments, Beg. of Year
Net income
38,757
-1,212,326
85,390
-352,437
291,528
193,039
-19,326
-12,267
-7,254
-4,412
-3,873
Add back Depreciation
183,676
183,470
190,000
195,000
200,000
210,000
210,000
210,000
210,000
210,000
210,000
Deduct Capital Outlay
123,554
145,000
513,000
267,5791
748,4781
658,0001
450,0001
450,000
450,0001
450,000
450,000
2,262,611
1,088,755
851,146
426,1301
169,180
-85,781
-345,106
-597,3731
844,627
-1,089,039
-1,332,913
Cash & Investments, End of Year
Retail Rate per 1,000 gallons, Tier 1
4.05
$4.30
$4.50
$4.50
$4.65
$4.70
$4.85
$5.00
$5.15
$5.30
$5.45
Retail Rate per 1,000 gallons, Tier
4.45
$4.70
$4.90
$4.90
$5.05
$5.10
$5.25
$5.40
$5.55
$5.70
$5.85
Retail Rate per 1,000 gallons, Tier 3
4.85
$5.10
$5.30
$5.30
$5.45
$5.50
$5.65
$5.80
$5.95
$6.10
$6.25
Rate increase from prior year
2.11%
5.15%
3.92%
0.00%
2.83%
0.92%
2.73%
2.65%
2.59%
2.52%
2.46%
Interest rate actual/projected
Crystal average rate
Unit sales (1,000 gallons)
JWC operating rate, /1,000 gallons
JWC capital rate, per 1,000 gallons
Units purchased from JWC
1.00% 1.00% 1.50% 2.00% 2.50% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00%
$4.33
$4.60
$4.80
$4.80
$4.95
$5.00
$5.15
$5.30
$5.45
$5.60
$5.75
600,000
600,000
600,000
600,000
600,000
600,000
600,000
600,000
600,000
600,000
600,000
$2.75
$0.33
$3.36
$0.60
$3.45
$0.61
$3.55
$1.21
$3.65
$0.15
$3.75
$0.21
$3.85
$0.58
$3.96
$0.58
$4.07
$0.58
$4.19
$0.58
$4.30
$0.58
693,000
600,000
600,000
600,000
600,000
600,0001
600,000
600,000
600,000
600,000
600,000
Attachment C
WATER UTILITY RATE STUDY
2014 Adopted Budget with paying cash for emergency wells and updated JWC capital
Emergency well fixed
charges and per unit rate increase in addition
to
rate increases in
the Adopted Bud et
PROFIT & LOSS
2013
2014
2015
2016
2017
2018
2019
2020
2021
2022
2023
REVENUES
600,000
600,000
600,000
600,000
Water usage charges
2,600,000
2,760,000
2,880,000
2,970,000
3,060,000
3,150,000
3,240,000
3,330,000
3,420,000
3,510,000
3,600,000
Fixed service charges
150,000
150,000
155,882
160,294
164,706
169,118
173,529
177,941
182,353
186,765
191,176
Ermergency well fixed charge
46,800
93,600
93,600
93,600
93,600
93,600
93,600
93,600
93,600
93,600
Penalties
57,000
60,000
61,500
63,038
64,613
66,229
68,216
70,262
72,370
74,541
76,777
Special Assessments
60,000
60,000
61,500
63,038
64,613
66,229
68,216
70,262
72,370
74,541
76,777
JWC reimbursement
12,000
12,000
12,000
12,000
12,000
12,000
12,000
12,000
12,000
12,000
12,000
Investment Income
27,000
23,300
16,331
17,023
13,014
10,811
8,055
5,314
2,937
866
-960
Miscellaneous
57,000
57,000
58,425
59,886
61,383
62,917
64,805
66,749
68,751
70,814
72,938
State testing fee billed
50,000
50,000
51,250
52,531
53,845
55,191
56,846
58,552
60,308
62,118
63,981
3,013,000
3,219,100
3,390,489
3,491,409
3,587,774
3,686,094
3,785,267
3,884,6811
3,984,690
4,085,244
4,186,291
TOTAL REVENUES
EXPENSES
Salaries & Wages
230,449
235,494
241,381
247,416
253,601
259,941
267,740
275,772
284,045
292,566
301,343
Fringe Benefits
81,183
89,084
93,538
98,215
103,126
108,282
111,531
114,877
118,323
121,873
125,529
JWC - Operations
1,908,730
2,013,304
2,069,677
2,127,627
2,187,201
2,248,443
2,311,399
2,376,118
2,442,650
2,511,044
2,581,353
JWC - Capital
229,500
358,225
364,500
725,760
90,450
128,250
350,000
350,000
350,000
350,000
350,000
JWC - emergency wells
1,215,000
JWC 2 cents/1,000 gal. fee
12,000
12,000
12,000
12,000
12,000
12,000
12,000
12,000
12,000
12,000
12,000
Professional/Contractual
94,568
97,755
100,688
103,708
106,820
110,024
113,325
116,725
120,226
123,833
127,548
Utilities
4,200
4,140
4,264
4,392
4,524
4,660
4,799
4,943
5,092
5,244
5,402
Repair & Maintenance
38,100
37,800
38,934
40,102
41,305
42,544
43,821
45,135
46,489
47,884
49,320
Supplies
50,500
50,500
52,015
53,575
55,183
56,838
58,543
60,300
62,109
63,972
65,891
Communications & Printing
7,600
3,500
3,605
3,713
3,825
3,939
4,057
4,179
4,305
4,434
4,567
Insurance & Training
16,265
12,703
13,084
13,477
13,881
14,297
14,726
15,168
15,623
16,092
16,575
Depreciation
183,676
183,470
190,000
195,000
200,000
210,000
210,000
210,000
210,000
210,000
210,000
Admin. Service Charge
117,472
118,451
121,412
124,448
127,559
130,748
134,670
138,710
142,872
147,158
151,572
2,974,243
4,431,426
3,305,098
3,749,434
3,199,474
3,329,967
3,636,611
3,723,927
3,813,732
3,906,099
4,001,100
TOTAL EXPENSES
NET INCOME or -LOSS
38,757
-1,212,326
85,390
-258,025
388,300
356,127
148,655
160,754
170,957
179,145
185,191
ENDING FUND BALANCE
7,494,8881
6,282,562
6,367,953
6,109,928
6,498,228
6,854,356
7,003,0111
7,163,7651
7,334,722
7,513,867
7,699,058
2,163,732
2,262,611
1,088,755
851,146
520,542
360,364
268,492
177,147
97,901
28,858
-31,997
CASH FLOW
Cash & Investments, Beg. of Year
Net income
38,757
-1,212,326
85,390
-258,025
388,300
356,127
148,655
160,754
170,957
179,145
185,191
Add back Depreciation
183,676
183,470
190,000
195,000
200,000
210,000
210,000
210,000
210,000
210,000
210,000
Deduct Capital Outlay
123,554
145,000
513,000
267,5791
748,4781
658,000
450,0001
450,0001
450,0001
450,000
450,000
2,262,611
1,088,755
851,146
520,5421
360,3641
268,4921
177,1471
97,9011
28,858
-31,997
-86,806
Cash & Investments, End of Year
4.05
$4.30
$4.50
$4.65
$4.80
$4.95
$5.10
$5.25
$5.40
$5.55
$5.70
Retail Rate per 1,000 gallons, Tier 1
Retail Rate per 1,000 gallons, Tier 2
4.45
$4.70
$4.90
$5.05
$5.20
$5.35
$5.50
$5.65
$5.80
$5.95
$6.10
Retail Rate per 1,000 gallons, Tier 3
4.85
$5.10
$5.30
$5.45
$5.60
$5.75
$5.90
$6.05
$6.20
$6.35
$6.50
Rate increase from prior year
2.11%
5.15%
3.92%
2.83%
2.75%
2.68%
2.61%
2.54%
2.48%
2.42%
2.36%
Interest rate actual/projected
Crystal average rate
Unit sales (1,000 gallons)
JWC operating rate, /1,000 gallons
JWC capital rate, per 1,000 gallons
Units purchased from JWC
1.00% 1.00% 1.50% 2.00% 2.50% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00%
$4.33
$4.60
$4.80
$4.95
$5.10
$5.25
$5.40
$5.55
$5.70
$5.85
$6.00
600,000
600,000
600,000
600,000
600,000
600,000
600,000
600,000
600,000
600,000
600,000
$2.75
$0.33
$3.36
$0.60
$3.45
$0.61
$3.55
$1.21
$3.65
$0.15
$3.75
$0.21
$3.85
$0.58
$3.96
$0.58
$4.07
$0.58
$4.19
$0.58
$4.30
$0.58
693,000
600,000
600,000
600,000
600,000
600,0001
600,000
600,000
600,000
600,000
600,000
Attachment D
WATER UTILITY RATE STUDY
2014 Adopted Budget with paying for emergency wells using half cash and half internal loan
tmer e
cy well TIXea
cnar es In aaalilon
io
raie Increases In ine HQOpiea t3Ua ei
PROFIT & LOSS
2013
2014
2015
2016
2017
2018
20191
2020
2021
2022
2023
REVENUES
600,000
600,000
600,000
600,000
$2.75
$3.36
$3.45
$3.55
$3.65
$3.75
$3.85
Water usage charges
2,600,000
2,760,000
2,880,000
2,880,000
2,970,000
3,000,000
3,090,000
3,180,000
3,270,000
3,360,000
3,450,000
Fixed service charges
150,000
150,000
155,882
155,882
160,294
161,765
166,176
170,588
175,000
179,412
183,824
Ermergency well fixed charge
600,000
46,800
93,600
93,600
93,600
93,600
93,600
93,600
93,600
93,600
93,600
Penalties
57,000
60,000
61,500
63,038
64,613
66,229
68,216
70,262
72,370
74,541
76,777
Special Assessments
60,000
60,000
61,500
63,038
64,613
66,229
68,216
70,262
72,370
74,541
76,777
JWC reimbursement
12,000
12,000
12,000
12,000
12,000
12,000
12,000
12,000
12,000
12,000
12,000
Investment Income
27,000
23,300
25,331
27,723
22,452
17,383
7,906
-1,747
-11,234
-20,619
-29,997
Miscellaneous
57,000
57,000
58,425
59,886
61,383
62,917
64,805
66,749
68,751
70,814
72,938
State testing fee billed
50,000
50,000
51,250
52,531
53,845
55,191
56,846
58,552
60,308
62,118
63,981
Internal loan proceeds
600,000
TOTAL REVENUES
3,013,000
3,819,100
3,399,489
3,407,697
3,502,800
3,535,313
3,627,765
3,720,267
3,813,165
3,906,406
3,999,901
EXPENSES
Salaries & Wages
230,449
235,494
241,381
247,416
253,601
259,941
267,740
275,772
284,045
292,566
301,343
Fringe Benefits
81,183
89,084
93,538
98,215
103,126
108,282
111,531
114,877
118,323
121,873
125,529
JWC - Operations
1,908,730
2,013,304
2,069,677
2,127,627
2,187,201
2,248,443
2,311,399
2,376,118
2,442,650
2,511,044
2,581,353
JWC - Capital
229,500
358,225
364,500
725,760
90,450
128,250
350,000
350,000
350,000
350,000
350,000
JWC - emergency wells
1,215,000
JWC 2 cents/1,000 gal. fee
12,000
12,000
12,000
12,000
12,000
12,000
12,000
12,000
12,000
12,000
12,000
Professional/Contractual
94,568
97,755
100,688
103,708
106,820
110,024
113,325
116,725
120,226
123,833
127,548
Utilities
4,200
4,140
4,264
4,392
4,524
4,660
4,799
4,943
5,092
5,244
5,402
Repair & Maintenance
38,100
37,800
38,934
40,102
41,305
42,544
43,821
45,135
46,489
47,884
49,320
Supplies
50,500
50,500
52,015
53,575
55,183
56,838
58,543
60,300
62,109
63,972
65,891
Communications & Printing
7,600
3,500
3,605
3,713
3,825
3,939
4,057
4,179
4,305
4,434
4,567
Insurance & Training
16,265
12,703
13,084
13,477
13,881
14,297
14,726
15,168
15,623
16,092
16,575
Depreciation
183,676
183,470
190,000
195,000
200,000
210,000
210,000
210,000
210,000
210,000
210,000
Admin. Service Charge
117,472
118,451
121,412
124,448
127,559
130,748
134,670
138,710
142,872
147,158
151,572
Debt service on internal loan
74,000
73,760
73,500
73,220
72,920
72,600
72,260
72,900
76,500
2,974,243
4,431,426
3,379,098
3,823,194
3,272,974
3,403,187
3,709,531
3,796,527
3,885,992
3,978,999
4,077,600
TOTAL EXPENSES
NET INCOME or -LOSS
38,757
-612,326
20,390
-415,497
229,826
132,126
-81,766
-76,260
-72,827
-72,593
-77,699
ENDING FUND BALANCE
7,494,888
6,882,562
6,902,953
6,487,456
6,717,283
6,849,409
6,767,643
6,691,38316,618,55616,545,9631
6,468,264
2,163,732
2,262,611
1,688,755
1,386,146
898,070
579,419
263,545
-58,221
-374,481
-687,308
-999,901
CASH FLOW
Cash & Investments, Beg. of Year
Net income
38,757
-612,326
20,390
-415,497
229,826
132,126
-81,766
-76,260
-72,827
-72,593
-77,699
Add back Depreciation
183,676
183,470
190,000
195,000
200,000
210,000
210,000
210,000
210,000
210,000
210,000
Deduct Capital Outlay
123,554
145,000
513,000
267,579
748,4781
658,000
450,0001
450,000
450,000
450,000
450,000
2,262,6111
1,688,7551
1,386,1461
898,0701
579,4191
263,545
-58,221
-374,481
-687,308
-999,9011-1,317,600
Cash & Investments, End of Year
4.05
$4.30
$4.50
$4.50
$4.65
$4.70
$4.85
$5.00
$5.15
$5.30
$5.45
Retail Rate per 1,000 gallons, Tier 1
Retail Rate per 1,000 gallons, Tier 2
4.45
$4.70
$4.90
$4.90
$5.05
$5.10
$5.25
$5.40
$5.55
$5.70
$5.85
Retail Rate per 1,000 gallons, Tier 3
4.85
$5.10
$5.30
$5.30
$5.45
$5.50
$5.65
$5.80
$5.95
$6.10
$6.25
Rate increase from prior year
2.11%
5.15%
3.92%
0.00%
2.83%
0.92%
2.73%
2.65%
2.59%
2.52%
2.46%
Interest rate actual/projected
Crystal average rate
Unit sales (1,000 gallons)
JWC operating rate, /1,000 gallons
JWC capital rate, per 1,000 gallons
Units purchased from JWC
1.00% 1.UU% 1.bU1/0 2.UU1/o 2.5U1/0 3.UU1/0 3.UU1/0 3.UU1/o 3.UU1/0 3.UU1/o 3.UU1/0
$4.33
$4.60
$4.80
$4.80
$4.95
$5.00
$5.15
$5.30
$5.45
$5.60
$5.75
600,000
600,000
600,000
600,000
600,000
600,000
600,000
600,000
600,000
600,000
600,000
$2.75
$3.36
$3.45
$3.55
$3.65
$3.75
$3.85
$3.96
$4.07
$4.19
$4.30
$0.33
$0.60
$0.61
$1.21
$0.15
$0.21
$0.58
$0.58
$0.58
$0.58
$0.58
693,000
600,000
600,000
600,000
600,000
600,000
600,000
600,000
600,000
600,000
600,000
Attachment E
WATER UTILITY RATE STUDY
2014 Adopted Budget with paying for emergency wells using half cash and half internal loan
Emergency well fixed
charges and per
unit rate increase
in addition
to rate increases in
the Adopted Bud
et
PROFIT & LOSS
2013
2014
2015
2016
2017
2018
2019
2020
2021
2022
2023
REVENUES
600,000
600,000
$2.75
$3.36
$3.45
$3.55
$3.65
$3.75
$3.85
$3.96
$4.07
Water usage charges
2,600,000
2,760,000
2,880,000
2,970,000
3,060,000
3,150,000
3,240,000
3,330,000
3,420,000
3,510,000
3,600,000
Fixed service charges
150,000
150,000
155,882
160,294
164,706
169,118
173,529
177,941
182,353
186,765
191,176
Ermergency well fixed charge
46,800
93,600
93,600
93,600
93,600
93,600
93,600
93,600
93,600
93,600
Penalties
57,000
60,000
61,500
63,038
64,613
66,229
68,216
70,262
72,370
74,541
76,777
Special Assessments
60,000
60,000
61,500
63,038
64,613
66,229
68,216
70,262
72,370
74,541
76,777
JWC reimbursement
12,000
12,000
12,000
12,000
12,000
12,000
12,000
12,000
12,000
12,000
12,000
Investment Income
27,000
23,300
25,331
27,723
24,812
23,118
18,535
13,921
9,624
5,585
1,714
Miscellaneous
57,000
57,000
58,425
59,886
61,383
62,917
64,805
66,749
68,751
70,814
72,938
State testing fee billed
50,000
50,000
51,250
52,531
53,845
55,191
56,846
58,552
60,308
62,118
63,981
Internal loan proceeds
600,000
3,013,000
3,819,100
3,399,489
3,502,109
3,599,572
3,698,401
3,795,746
3,893,287
3,991,376
4,089,964
4,188,965
TOTAL REVENUES
EXPENSES
Salaries & Wages
230,449
235,494
241,381
247,416
253,601
259,941
267,740
275,772
284,045
292,566
301,343
Fringe Benefits
81,183
89,084
93,538
98,215
103,126
108,282
111,531
114,877
118,323
121,873
125,529
JWC- Operations
1,908,730
2,013,304
2,069,677
2,127,627
2,187,201
2,248,443
2,311,399
2,376,118
2,442,650
2,511,044
2,581,353
JWC - Capital
229,500
358,225
364,500
725,760
90,450
128,250
350,000
350,000
350,000
350,000
350,000
JWC - emergency wells
1,215,000
JWC 2 cents/1,000 gal. fee
12,000
12,000
12,000
12,000
12,000
12,000
12,000
12,000
12,000
12,000
12,000
Professional/Contractual
94,568
97,755
100,688
103,708
106,820
110,024
113,325
116,725
120,226
123,833
127,548
Utilities
4,200
4,140
4,264
4,392
4,524
4,660
4,799
4,943
5,092
5,244
5,402
Repair & Maintenance
38,100
37,800
38,934
40,102
41,305
42,544
43,821
45,135
46,489
47,884
49,320
Supplies
50,500
50,500
52,015
53,575
55,183
56,838
58,543
60,300
62,109
63,972
65,891
Communications & Printing
7,600
3,500
3,605
3,713
3,825
3,939
4,057
4,179
4,305
4,434
4,567
Insurance & Training
16,265
12,703
13,084
13,477
13,881
14,297
14,726
15,168
15,623
16,092
16,575
Depreciation
183,676
183,470
190,000
195,000
200,000
210,000
210,000
210,000
210,000
210,000
210,000
Admin. Service Charge
117,472
118,451
121,412
124,448
127,559
130,748
134,670
138,710
142,872
147,158
151,572
Debt service on internal loan
74,000
73,760
73,500
73,220
72,920
72,600
72,260
72,900
76,500
2,974,243
4,431,426
3,379,098
3,823,194
3,272,974
3,403,187
3,709,531
3,796,527
3,885,992
3,978,999
4,077,600
TOTAL EXPENSES
NET INCOME or -LOSS
38,757
-612,326
20,390
-321,085
326,598
295,215
86,215
96,760
105,384
110,965
111,365
ENDING FUND BALANCE
7,494,8881
6,882,56216,902,95316,581,86816,908,4671
7,203,6811
7,289,896
7,386,6571
7,492,0411
7,603,0051
7,714,370
2,163,732
2,262,611
1,688,755
1,386,146
992,482
770,603
617,817
464,032
320,793
186,177
57,141
CASH FLOW
Cash & Investments, Beg. of Year
Net income
38,757
-612,326
20,390
-321,085
326,598
295,215
86,215
96,760
105,384
110,965
111,365
Add back Depreciation
183,676
183,470
190,000
195,000
200,000
210,000
210,000
210,000
210,000
210,000
210,000
Deduct Capital Outlay
123,554
145,000
513,000
267,579
748,478
658,000
450,000
450,000
450,000
450,000
450,000
2,262,6111
1,688,755
1,386,146
992,482
770,603
617,817
464,0321
320,793
18671-7-7-F-57,141
-71,494
Cash & Investments, End of Year
Retail Rate per 1,000 gallons, Tier 1
4.05
$4.30
$4.50
$4.65
$4.80
$4.95
$5.10
$5.25
$5.40
$5.55
$5.70
Retail Rate per 1,000 gallons, Tier 2
4.45
$4.70
$4.90
$5.05
$5.20
$5.35
$5.50
$5.65
$5.80
$5.95
$6.10
Retail Rate per 1,000 gallons, Tier 3
4.85
$5.10
$5.30
$5.45
$5.60
$5.75
$5.90
$6.05
$6.20
$6.35
$6.50
Rate increase from prior year
2.11%
5.15%
3.92%
2.83%
2.75%
2.68%
2.61%
2.54%
2.48%
2.42%
2.36%
Interest rate actual/projected
Crystal average rate
Unit sales (1,000 gallons)
JWC operating rate, /1,000 gallons
JWC capital rate, per 1,000 gallons
Units purchased from JWC
1.00% 1.00% 1.50% 2.00% 2.50% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00%
$4.33
$4.60
$4.80
$4.95
$5.10
$5.25
$5.40
$5.55
$5.70
$5.85
$6.00
600,000
600,000
600,000
600,000
600,000
600,000
600,000
600,000
600,000
600,000
600,000
$2.75
$3.36
$3.45
$3.55
$3.65
$3.75
$3.85
$3.96
$4.07
$4.19
$4.30
$0.33
$0.60
$0.61
$1.21
$0.15
$0.21
$0.58
$0.58
$0.58
$0.58
$0.58
693,000
600,000
600,000
600,000
600,000
600,000
600,000
600,000
600,000
600,000
600,000
Attachment F
Memorandum
CP1'Y of
CRYSTAL
DATE: February 10, 2014
TO: Mayor and City Council
FROM: Anne Norris, City Manager
SUBJECT: Minnesota GreenStep Cities Program
Based on a report to the 2009 Legislature, the Minnesota Pollution Control Agency
(MPCA) developed the Minnesota GreenStep Cities program. The program is governed
by a public-private partnership of state agencies and non-governmental organizations and
is led by the MPCA.
The GreenStep Cities program is a free and voluntary program and is designed to help
cities achieve their local sustainability and quality of life goals. The program is based on
28 best practices in five categories: Buildings and Lighting; Land Use; Transportation;
Environmental Management; and Economic and Community Development. Attachment 1
is a list of the 28 GreenStep best practices. Cities determine which "best steps" they are
interested in pursuing and achieve certain goals with each "best step."
Other metro area cities currently participating in the Minnesota GreenStep Cities program
are Apple Valley, Burnsville, Columbia Heights, Cottage Grove, Eagan, Eden Prairie,
Edina, Falcon Heights, Farmington, Hopkins, Maple Grove, Maplewood, Minnetonka,
North St. Paul, Oakdale, Richfield, St. Anthony, St. Louis Park, Shoreview, Shorewood,
Victoria, White Bear Lake and Woodbury.
Attachment 2 contains general information and history on the Minnesota GreenStep Cities
program and Attachment 3 contains information on steps to becoming recognized as a
GreenStep city.
The City Council discussed this in 2012 and in December 2012, a vote on a resolution
authorizing the city to participate in the GreenStep Cities program failed on a 3-3 vote, with
one councilmember abstaining. There was discussion about whether sufficient research
had been done on the program and whether the city needed to participate in the program
if some of the best practices are already being done.
The City Council should discuss whether it wishes to pursue additional discussion of the
Minnesota GreenStep Cities program and if any additional information is needed.
Attach:
Aprogrem otthe Minnesota Pollution Control Agency and its partners
Minnesota Gree
GreenStep Cities is an assistance program for all Minnesota cities that supports and
recognizes implementation of 28 sustainable development best practices.
The best practices focus on cost savings and energy use reductions that lead cities beyond compliance and
encourage a culture of innovation.
Cities that implement a minimum number of best practices, organized into five categories below, will be
recognized as a GreenStep City. Each best practice can be implemented by completing one or more specific
actions from a list of four to eight actions. A city's accomplishments are recognized on the GreenStep website.
Implementation of additional best practices will garner additional recognition.
Visit www.MnGreenStep.org to learn more about this program, to see what cities have accomplished, and to
understand how your city can become involved.
GreenStep's 28 Best Practices
Buildings and Lighting
1. Efficient Existing Public Buildings: Assess and finance energy and sustainability improvements of
existing structures.
2. Efficient Existing Private Buildings: Assess and finance energy and sustainability improvements of
existing structures.
3. New Green Buildings: Construct new buildings to meet or qualify for a green building standard.
4. Efficient Building & Street Lighting and Signals: Improve the efficiency of public and private
lighting and signals.
5. Building Reuse: Create economic and regulatory incentives for redeveloping and repurposing
existing buildings before building new.
Land Use
6. Comprehensive Plan and Implementation: Adopt a Comprehensive Plan and tie regulatory
ordinances to it.
7. Efficient City Growth: Promote financial and environmental sustainability by enabling and
encouraging higher density housing and commercial land use.
8. Mixed Uses: Develop efficient and healthy land patterns.
9. Efficient Highway -Oriented Development: Adopt commercial development and design standards
for highway road corridors.
10. Conservation Design: Adopt development ordinances or processes that protect natural systems.
111
Transportation
11. Complete Green Streets: Create a network of multimodal green streets. i
12. Mobility Options: Promote active living and alternatives to single -occupancy car travel. r*N 9
919
13. Efficient City Fleets: Implement a city fleet investment, operations and maintenance plan.
14. Demand -Side Travel Planning: Use Travel Demand Management and Transit -Oriented Design.
Environmental Management
15. Purchasing: Adopt an environmentally preferable purchasing policy.
16. Urban Forests: Increase city tree and plant cover.
17. Efficient Stormwater Management: Minimize the volume of and pollutants in rainwater
runoff.
18. Parks and Trails: Enhance the city's green infrastructure.
19. Surface Water Quality: Improve local water bodies.
20. Efficient Water and Wastewater Facilities: Assess and improve drinking water and sewer
facilities.
21. Septic Systems: Implement an effective management program for decentralized wastewater
treatment systems.
22. Solid Waste Reduction: Increase waste reduction, reuse and recycling.
23. Local Air Quality: Prevent generation of local air contaminants.
Economic and Community Development
24. Benchmarks & Community Engagement: Adopt outcome measures for GreenStep and other W
city sustainability efforts, and engage community members in ongoing education, discussion, _
and campaigns.
A !
25. Green Business Development: Support the expansion of the green business sector in your city.
26. Renewable Energy: Remove barriers to and encourage installation of renewable energy
generation capacity.
27. Local Food: Strengthen local food and fiber production and access.
28. Business Synergies: Network/cluster businesses to achieve better energy, economic and
environmental outcomes.
Minnesota GreenStep Cities grew out of a report to the 2009 Legislature. The program is governed by a public-private
partnership of state agencies and non-governmental organizations and is led by the MPCA.
f Urban Land
Ll,'U a
Institute LEAG EEoF
Minnesola MINNESOTA
CITIES
`vIrpPN EJV## t
divisi.. of
.P rimewea wyuun.m a� ea�.R.
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www.MnGreenStep.org
Great Plains
r
Institute �
Minnesota GreenStep Cities
Home I About I The 28 best practices i Become a GreenStep City I Model Ordinances I City log -in i Contact/Feedback
The GreenStep 28 best
practices
Make planning and tracking easier: download
this spreadsheet that lists all 168 unique
actions for all 28 best practices.
An online version (see view -only example)
can be shared with, and edited by, multiple
staff members, citizens and elected officials. E
-mail Amir Nadav, Great Plains Institute, for
online access rights.
• Cities that implement a minimum number of best
practices organized into these five topical areas
will be recognized as a GreenStep City. See
What's required to be a GreenStep City?
• Cities should claim credit for best practices
already implemented. Adding best practices over
time will garner additional recognition.
For each best practice, and depending on city
category (A, B or C), a city needs to complete one
or more actions from a list associated with the
best practice. See What category is my city in?
Transportation
11. Complete Green Streets: Create a `
network of multimodal green streets that add O O
value to the surrounding properties.
12. Mobility Options: Promote active transportation
and alternatives to single -occupancy car travel.
13. Efficient City Fleets: Implement a city fleet
investment, operations and maintenance plan.
14. Demand -Side Travel Planning: Implement
Travel Demand Management and Transit -Oriented
Design in service of a more walkable city.
Buildings and Lighting
1. Efficient Existing Public Buildings:
Benchmark energy usage, identify savings
opportunities in consultation with state
programs, utilities and others to implement
lk
cost-effective energy and sustainability improvements.
2. Efficient Existing Private Buildings: Provide
incentives for energy, water and sustainability
improvements in existing structures.
3. New Green Buildings: Construct new buildings to
meet or qualify under a green building framework.
4. Efficient Outdoor Lighting and Signals: Improve
the efficiency of street lights, traffic signals and
outdoor public lighting.
5. Building Reuse: Create economic and regulatory
incentives for redeveloping and repurposing existing
buildings before building new.
Environmental Management
15. Purchasing: Adopt environmentally
preferable purchasing policies and
practices. 0
16. Urban Forests: Add city tree and plant cover that
increases community health, wealth and quality of life.
17. Efficient Stormwater Management: Minimize the
volume of and pollutants in rainwater runoff.
18. Parks and Trails: Support active lifestyles and
property values by enhancing the city's green
infrastructure.
19. Surface Water Quality: Improve local water
bodies.
20. Efficient Water and Wastewater Facilities:
Assess and improve city drinking water and
wastewater facilities.
21. Septic Systems: Implement an effective
management program for decentralized wastewater
treatment systems.
22. Solid Waste Reduction: Increase waste
reduction, reuse and recycling.
23. Local Air Quality: Prevent generation of local air
contaminants.
Minnesota Pollution Control Agency I Contact I Web site policy
Land Use
Page 1 of 1
Stay Connected iii IN
6. Comprehensive Plan and
Implementation: Adopt a Comprehensive
Plan and tie regulatory ordinances to it.
7. Efficient City Growth: Promote financial and
environmental sustainability by enabling and
encouraging walkable housing and commercial land
use.
8. Mixed Uses: Develop efficient and healthy land
patterns that generale community wealth.
9. Efficient Highway -Oriented Development: Adopt
commercial development and design standards for
highway corridors.
10. Conservation Design: Adopt development
ordinances or processes that protect natural systems.
Economic and Community
Development
24. Benchmarks &Community
Engagement: Adopt outcome measures
for GreenStep and other city
sustainability efforts, and engage
community members in ongoing education, dialogue,
and campaigns.
25. Green Business Development: Support
expansion of the city's green business sector.
26. Renewable Energy: Remove barriers to and
encourage installation of renewable energy generation
capacity.
27. Local Food: Strengthen local food and fiber
production and access.
28. Business Synergies: Network/cluster businesses
to achieve better energy, economic and environmental
outcomes-
http://greenstep.pea.state.mn.us/bestPractices.cfm 2/10/2014
Minnesota GreenStep Cities
Page 1 of 3
A*40muld 4
Home I About I The 28 best practices I Become a GreenStep City I Model Ordinances I City log -in I Contact/Feedback
The Minnesota GreenStep Cities Program
History and development
During fall 2007, Minnesota's Clean Energy Resource Teams (CERTs) held regional listening sessions around the
state to discuss community-based energy opportunities and the state's Next Generation Energy Act of 2007. The idea
was raised of creating a sustainable cities program, free to cities, that would challenge, assist and recognize cities
that were "green stars." This idea was taken up by the 2008 Legislature, which directed the MPCA, the Division of
Energy Resources at the Minnesota Department of Commerce, and CERTs to recommend actions cities could take
on a voluntary basis.
Those recommendations are contained in the report Minnesota GreenStep Cities. Representatives from dozens of
cities, non-profit organizations, businesses and state government agencies provided the outline for what has been
developed as the Minnesota GreenStep Cities program, which began in June 2010.
Stay Connected 91 d
Minnesota GreenStep Cities
SEE
a7s
In May 2012 the GreenStep Cities program received awards in the categories of Sustainable Communities and 2012 Partnership of the Year from the
Minnesota organization Environmental Initiative. The awards honor partnerships, inspire other organizations to create similar projects, and encourage
collaborative approaches to environmental problem solving. Over 340 attendees at the awards dinner voted among the 15 finalists nominated for the
2012 Partnership of the Year.
Resources: Background and promotion
A variety of resources has been created to help explain the program.
GreenStep Notables: Activities by cities through GreenSlep's second year
• Fact sheet
PowerPoint presentation (May 2013 - 3Mb)
A short introductory video created by the Great Plains Institute
Green Cities: Leading the Way is a 27 -minute documentary highlighting sustainability measures
being taken by four trailblazing Minnesota cities: Barnesville, Elk River, Minneapolis, and New Ulm.
Related: Case studies of sustainable action by cities compiled by the League of Minnesota Cities
and the state Auditor.
Partner organizations
Participating cities earn stylish
awards in the form of "recognition
blocks" made from reclaimed urban
wood. When a city completes step
three, it will have a set which
recreates the logo of GreenStep
Cities and reflects the commmunity's
sustained commitment and
continuous improvement.
Of the organizations that created the 2009 report to the Legislature, this group below meets bi-monthly as the GreenStep Cities working committee,
contributing time and funding to implement GreenStep Cities program. Each spring the committee organizes a review of the GreenStep program,
which includes recommendations from the public, participating cities, state agencies, topic experts, and the League of Minnesota Cities. The
committee also works with the League, which recognizes GreenStep cities each June.
GREAT PLAINS
Minnesota Pollution
Minnesota Pollution Control Agency Great Plains Institute
Control Agency Philipp Muessig, GreenStep Cities Coordinator INSTITUTE Lola Schoenrich, Senior Program Manager, (
Philipp.muessig@state.mn.us Energy Efficiency
651/757-2594 Ischoenrich@gpisd.net
612/278-7154
E NEq
Clean Energy Resource Teams
gyp.%
v !-�'Z 4`
Lissa Pawlisch, Statewide Coordinator
��
PawIO048@umn.edu
p`3W�
612/624-2293
0URCE
1'0P
League of Minnesota Cities
Don Reeder, Public Relations Manager
dreeder@lmc.org
651/215-4031
® InstituteInstituten #Land Urban Land Institute Minnesota
Kristina Smitten, GreenStep Cities Project
Manager
Minnesota ksmitten@smittengroup.com
651/246-9443
Izaak Walton League - Minnesota Division
Michelle Schroeder, Director at Large
sustainableike@hotmail.com
612/388-5623
httn://Rreenstet).pca.state.mn.us/aboutProgram.cfm 2/10/2014
Minnesota GreenStep Cities
UAGUE or
MINNESOTA
CITIES ®r
division of
Minnesota Dept. of Commerce, Division of Energy
��
Resources
Eric Rehm
Wwmu bwe�....1 d Ca,mm
Eric. Rehm@state.mn. us
6511296-6446
Page 2 of 3
Program funders
In addition to staff time contributed by the MPCA and the Division of Energy Resources to work on the GreenStep program, several funders support
the staff time of personnel from the five non-profit GreenStep partner organizations. Others wishing to support the program may contact Lola
Schoenrich of the Great Plains Institute. The GreenStep program greatly appreciates the support of the following organizations:
Walmart Foundation
McKnight Foundation
Annual GreenStep City awards
Each June the League of Minnesota Cities formally recognizes all new and continuing GreenStep cities at its annual conference. Recognition is based
upon a review of city -reported progress toward completing actions.
As cities complete steps one, two and three, they earn stylish awards in the form of "recognition blocks" made from reclaimed urban wood. When a
city completes step three, it will have a set which recreates the logo of GreenStep Cities and reflects the commmunity's sustained commitment and
continuous improvement.
Created with flickr slideshow.
Award sponsors
Businesses and other organizations may become GreenStep Cities Awards Sponsors and receive visibility each June, when GreenStep Cities are
recognized at the annual conference of the League of Minnesota Cities. Businesses and other organizations, especially those providing assistance to
cities working on implementing best practices, are encouraged to contact the LMC working committee member for more details.
Sponsors of the 2013-2014 GreenStep Cities Awards:
Ameresco - Green, Clean, Sustainable
CenterPoint Energy
CR Planning - Community Resources
Finance & Commerce
Minnesota Dept. of Commerce, Division of Energy Resources
http://greenstep.pca.state.mn.us/aboutProgram.cfm 2/10/2014
Minnesota GreenStep Cities
Yage 1 of 2
P3
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Steps to becoming recognized as a GreenStep city
Of Minnesota's 855 cities, approximately 500 are under 1,000 in population, 83% are under 5,000 in population, and 35 have a population over
25,000. With such a diversity of cities, no one set of process steps will fit all cities in organizing work to become a GreenStep City. Depending on your
city, work may start mostly at the city staff, citizen commission or city council level and fit well into existing plans and efforts, moving later to
incorporate and leverage work efforts by civic organizations. Or the impetus for implementing GreenStep best practices may start with a civic group
and be mostly done by community members and community organizations, with the city council in a supportive and active role as needed.
Thus the abbreviated list of organizing steps below must be seen as a rough guide, to be adapted by each city. For more details under each step,
download the full Organizing Steps Guide.
Build community knowledge and interest.
• Anyone can start this. What are the
benefits
• Determine into which category your city fits.
to being a i
Become familiar with GreenStep best practices. GreenStep city?
l• Talk with key people and organizations in your city.
i
Invite, as needed, a GreenStep program representative to your city. What
Conduct an inventory of completed, planned and desired best practices.
caylgry
Discuss with an official city body. • i s
Approve a city council resolution to work toward GreenStep Cities
r J recognition. H'
v e Use the sample resolution. r What's
Introduce a resolution to the city council. required t0 be
Specify a GreenStep coordinator and a few best practices to implement. a GreenStep
E-mail your city resolution and GreenStep contact information to the MPCA. city?
Congratulationsl You are now a Step One GreenStep City) Use Step One recognition artwork/matertals (found on Download
our city to m page) to let others know of our accomplishment. Formal recognition of Ste One cities takes lace LReiclukaY tY 9= p 9) Y P P P sample
each June at the annual League of Minnesota Cities conference.
resolution.
Post initial information on the GreenStep Cities web site via your log-
in page
• Enter simple information about your city. .
Provide brief detail on best practices previously implemented.
ep
Get organized to begin work on implementing best practices. details
• As needed, educate city staff and officials about sustainability.
Convene a small working group.
Specify implementation action(s) and a few lead people.
Prepare a simple work plan for implementing selected best practices.
Present the best practice plans to a city body or to the city council as appropriate.
Implement best practices.
Keep everyone moving and celebrate success.
Clarify, as needed, what constitutes completing an action with the MPCA GreenStep program
coordinator.
Briefly describe implemented best practices on the GreenStep web site.
http://greenstep.pca.state.nm.us/steps.cfm 2/10/2014
Minnesota GreenStep Cities
Congratulations! When you have implemented any 4, 6 or 8 best practices (depending on your city category) you are
now a Step Two GreenStep City! Use Step Two recognition artwork/materials (found on your city login page) to let
others know of your accomplishment. Formal recognition of Step Two cities takes place each June at the annual
League of Minnesota Cities conference.
Keep working on best practices.
Implementing a particular best practice action may take months or one to two years.
• Be alert to opportunities to complete multiple best practice actions at once.
Check back with the city council as needed.
Report yearly to community members.
As your work proceeds, give us feedback on the program.
Congratulations! When you have implemented 8,12 or 16 best practices (depending on your city category)
distributed across the five topical areas and including a few required best practices, you are now a Step Three
GreenStep City) Use recognition artworklmaterials (found on your city log -in page) to let others know of your
accomplishment. Formal recognition of Step Three cities takes place each June at the annual League of Minnesota
Cities conference.
GreenStep Cities Step Four
tlt GreenStep Cities Step Four program requirements will be developed during 2012, as we learn from
cities during 2010 and 2011, that challenge recognized GreenStep Cities to implement more actions
and thus be recognized for these accomplishments. We think GreenStep best practices will result in
multiple benefits for your city and that you'll want to continuously work on best practices that make your
city more sustainable.
rage /_ of
Minnesota Pollution Control Agency I Contact I Web site policy i
http://greenstep.pca. state. mn. us/steps.cfin 2/10/2014
CITY MEMORANDUM
CRYSTAL
DATE: February 11, 2014
TO: Mayor and City Council
FROM: Anne Norris, City Manager
Chrissy Serres, City Clerk
SUBJECT: Liquor Licenses
At its January 21 work session, the City Council asked staff for additional information regarding
the staff time and costs associated with processing liquor licenses/wine and beer licenses.
Attached is a summary of the licensing process, which includes approximate staff time and
costs. The attachment reflects a seamless liquor licensing process from start to finish,
however that is rarely the case. Staff time can vary depending upon a variety of factors such
as specific business license requirements and other circumstances that may arise throughout
the process.
Additional staff time is also required to manage compliance checks, enforcement action,
maintain accurate records, and provide extra assistance to non-compliant licensees. The
City Clerk, Police Department, City Attorneys, and Finance Department may be included in any
of the above regulation and management of liquor licenses. An average cost for these services
can range from $4,000 - $6,000.
Due to costs associated with regulating and managing liquor licenses, staff proposes the
following fee increases:
Liquor Current annual fee
Off sale 3.2 malt liquor: $50.00
On sale 3.2 malt liquor: $522.50
On sale wine premises seating 25-99: $500.00
On sale wine, premises seating 100+: $1,000.00
Dual on sale wine/beer, premises seating 25-99: $1,022.50
Dual on sale wine/beer, premises seating 100+: $1,522.50
The Council should discuss any changes to the liquor license fees.
Proaosed annual fee
$100.00
$550.00
$2,000.00 flat fee
$2,000.00 flat fee
$2,550.00 flat fee
$2,550.00 flat fee
Page 1 of 1
Liquor License Staff Time Summary
STEP ONE - New Business Information Form (BIF):
Staff involved in responding to a new liquor license establishment:
o Community Development Director — compile comments from staff and issue BIF
letter to applicant
o City Planner - make zoning determination and transmit findings to CD Director
o City Clerk — determine licensing requirements and provide comments to CD
Director
o Building Official — Provide comments to CD Director regarding process for
obtaining permit applications, inspections, certificate of occupancy, etc.
o West Metro Fire -Rescue District — create separate response letter to applicant
regarding fire code requirements, inspections, etc.
STEP TWO - City Clerk:
• Prepare appropriate City and State liquor license application forms for applicant
• Meet with applicant to review license application forms, city ordinances and applicable
laws
• Receive and review application forms and verify application is complete, which includes
ensuring the application has been completely fill out and all required supplemental
information has been submitted, such as purchase or lease agreements, Articles of
Incorporation, by-laws, addendum for corporations, etc. as applicable per business
• Verify business name/information with the Secretary of State's Office (online verification
of information is available but additional follow-up via phone, email, etc. may be
required)
• Verify Tax ID numbers with the MN Department of Revenue (via phone - online
verification not available at this time)
• Review certificate of insurance for proper information and ensure it meets State
requirements — additional follow-up with insurance company is typical via email and/or
phone
• Forward application documents to City Attorney for review (preparing documents for
scanning, copying, emailing and/or mailing etc.)
• Forward background forms to the Police Department to conduct applicable background
checks (creating memo, copying, etc.)
• Verify with State the required inspections per establishment; follow-up with State,
applicant, and city staff as appropriate
STEP THREE - Police Department:
• Records/Office Manger processes various records checks
• Deputy Chief or Lieutenant conducts further background checks in which the applicant
and references are contacted via phone. This person also creates a written report to the
Police Chief and City Clerk of the findings.
STEP FOUR - City Attorney:
• Review applications and discuss issues with City Clerk
STEP FIVE - City Clerk:
• Once background is clear and City Attorney has completed his review of the application
information, City Clerk contacts applicant to schedule a date for public hearing
• City Clerk prepares notice for the public hearing and forwards to SunPost for publishing
(10 day prior to Council meeting)
STEP SIX - Engineering/GIS:
• Researches properties within a 500' radius and creates address labels and a map for City
Clerk
STEP SEVEN - Administrative Support Staff:
• Collect and process licensing fees
• Processes public hearing notice mailing to applicable properties (stuffing and labeling
envelopes, mailing, etc.)
• Data entry of applicant information in the licensing software program
STEP EIGHT - City Clerk:
• Prepares staff report for Council meeting and Public Hearing
• Complete processing of State forms after Council action (Chief to sign State applications)
and mail required documents to State for processing and approval (On-line processing of
liquor licenses is not yet available)
• Follow-up with State regarding licenses, coordinate required State liquor license site
inspection with applicant
• Once the State approves the license(s), process city license(s) and notify applicant
• Follow-up with building, health and fire departments to ensure all outstanding orders and
inspections have been complied with before issuing license
The process for new liquor licenses is 4 - 8 weeks depending on the license requirements and
specific circumstances.
Departments
Average Time
Average Costs
Community Development
1.5 - 3 hours
$100-$200
Administration
12 - 18 hours
$650 - $1,000
Engineering/GIS
1 - 2 hours
$50-$100
Police
6 - 8 hours
$450-$800
West Metro -Fire Rescue District
1 - 2 hours
$60-$120
City Attorney
1 - 3 hours
$150-$450
Total
22.5 - 36 hours
$1,460 - $2,670
Average
29 hours
$2,065.00
Memorandum
CITY of
CRYSTAL
DATE: February 11, 2014
TO: Mayor and City Council
FROM: Anne Norris, City Manager
SUBJECT: Commission Liaison Updates
Councilmembers are appointed as liaisons to the various advisory commissions. The
Council has had discussions about wanting to be better informed about the activities of
the various commissions. At the second work session of each month, there will be a
standing agenda item for reports from the liaisons to the following commissions:
- Environmental Quality Commission
- Human Rights Commission
- NWHHSC Advisory Committee
- Parks & Recreation Commission
- Planning Commission