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2014.06.03 Council Meeting Packet4141 Douglas Drive North • Crystal, Minnesota 55422-1696 Te]: ('763) 53l -1000 • Fax: ('763) 53l -1188 • www.crystalmn.gov �� rr�� ►�� r�� Posted: May 30, 2014 City Council Meeting Packet for Tuesday, June 3, 2014 MEETING SCI3EDULE }tttttt,tttt,ttt. t ,,,,,,,,, ,,,,, ,, ,,,,,,,,,,, t t t ,. �F,F,F,F,FFFF, F,F,FF, F F,F,F,F,F,F,F,F,FF l , ,,,, ,,,,,. t , t {t iU. } } . } . } } } . }i� . .. }i�� }i }i qU. , } }i }i� }i� } } } . }i� } . } } j j , J.;, .t t��t� .:k t t t.:,t� t�� t .t . t i . i�.��a. . i. i. i. i 1 i. il. i. i.t7s� �.�.� ,}�'.,s � � �.�.� � .S. ....£t. si..,,(. �U. . 4flSFq..y ..,)1t}. .}.}.}i. :.U...} }. .4.li.k k. I.re+.t, .t }. } } } } ..;. 4. }FS F4.44 FS FS F...� ��t1�.. . i., „ i> t:... {.F4.44. FS FS.F4.44 FS F .� } ... £ ..7... .s�( t £ } . i i f i i i i , J: c i. rt. rt. rt rt rt . a >. 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TTY users may call Minnesvta Relay at 711 or 1-800-627-3529. 4141 Douglas Drive North • Crystal, Minnesota 55422-1696 Tel: ('763) 531-1000 • Fax: (763) 531-1188 • www.crystalmn.gov CRYSTA� CITY COUNCI� WORK SESSION AGENDA Tuesday, June 3, 2014 Crystal City Hall Community Room 6:15 p.m. Posted: May 30, 2014 Pursuant to due call and notice given in the manner prescribed by Section 3.01 of the City Charter, the work session of the Crystal City Council was held at p.m. on Tuesday, June 3, 2014 in the Community Room located at 4141 Douglas Drive, Crystal, Minnesota. I. Attendance Council members Selton Adams Budziszewski Deshler Hoffmann �ibby Peak Staff Therres Mathisen Hansen Revering Gilchrist Serres II. Aqenda The purpose of the work session is to discuss the following agenda items: • Review and receive update on Phase 14 North �ions Park Street Reconstruction Feasibility Study request • Continue discussion of financing for Winnetka Hills Mill and Overlay Project No. 20�4-2� 111. Adiournment The work sessian adjourned at p.m. Auxiliary aids are available upon request to individuals with disabilities by calling the Cify C/erk at (763) 531- 1145 at least 96 hours in advance. TTY users may call Minnesota Relay at 711 or 1-800-627-3529. COUNCIL STAFF REPORT CITYof phase 14 North Lions Feasibility Study CRY5TAL FROM: Tom Mathisen, Public Works Director & City Engineer TO: Anne Norris, City Manager (for June 3 Council Work Session) DATE: May 29, 2014 RE: Discuss Commencement of Phase 14 Street Project #2014-14 The Phase 13 Becker Park Street Reconstruction Project began construction in Spring 2013 and will be completed by the end of June 2014 with the paving of the wear course layer of asphalt. This project started with the Feasibility Study ordered by the Council in June 2012. Phases 11 — 13 were built in three consecutive years with a break programmed in the schedule in 2014. In order to resume the reconstruction program, the Feasibility Study for Phase14 North Lions Park Neighborhood should be ordered this June in order to meet all the required deadlines. The purpose of the work session is to re-introduce the Council to the process for conducting a street reconstruction project, as it has been two years since the last project. Short, Elliot, and Hendrickson (SEH) has prepared a proposal to conduct the study which would be completed for review by the council at the end of the summer. Mr. Aaron Ditzler, SEH project manager, will be present to discuss the project. One of the first actions will be a first class mailing to impacted property owners alerting them to the project and requesting that they fill out a questionnaire relating to many aspects of the project. R pectfully submi e Tom Mathisen, ity Engineer/DPW i:/pubworks/projects/phase14/feasibilitywrksessmem �� 0 275 550 Feet FILE N0. CRYST 128041 � 3uiiding i 6c:[i � `i4'prl ; for All ot Us` Supplemental Letter of Agreement to Agreement for Professional Services Dated July 7, 2009 May 28, 2014 Tom Mathisen, PE Director of Public Works / City Engineer City of Crystal 4141 Douglas Drive North Crystal, MN 55422-1696 Dear Tom: RE: Crystal, MN 2015 - Phase 14 Lions Park Street Reconstruction Report on Feasibility City Project No. 2014-14 SEH No. P-CRYST 128041 10.00 We appreciate the opportunity to submit our Supplemental Letter Agreement for the Phase 14 Lions Park Feasibility Study (Study). We understand that this Study is a refinement of work already begun by the Update to the 2003 Overall Study for Crystal's Local Street Reconstruction Program. Our services are in accordance with the updated Exhibit A, Paragraph B of the Agreement for Professional Services dated July 7, 2009 (Agreement). The Study area limits are the Lions Park Neighborhood, bounded on the west by West Broadway and the New Hope corporate limits, the south by Bass Lake Road, the east by the Burlington Northern Santa Fe Railroad, and the north by 62"d Avenue and the New Hope corporate limits. In general, in this phase we will continue the process followed in the first thirteen phases of local street reconstruction in Crystal. Specifically we propose the following key activities: 1. Prepare a"kick-oif' newsletter that will include the resident survey on driveways, sump pumps, rain gardens and sanitary sewer service repair. It will also ask Phase 14 residents to indicate if they have private underground lawn irrigation and pet containment systems. 2. Utilize property information data supplied by the City's GIS system to prepare the mock assessment role. 3. Utilize amounts and locations of existing D and B style concrete curb and gutter supplied by the City's GIS system to prepare the mock assessment role. 4. Study the area-wide existing storm sewer system capacity. 5. Study roadway width, parking/no parking, sidewalk and pavement striping options along the project area Municipal State Aid (MSA) routes, which are: a. 60"' Avenue between Hampshire and Elmhurst Avenues, b. 62"d Avenue between Louisiana and Hampshire Avenues, and Engineers � Architects � Planners � Scientists Short Elliott Hendrickson Inc., 10901 Red Circle Drive, Suite 300, Minnetonka, MN 55343-9302 SEH is 100% employee-owned � sehinc.com � 952.912.2600 � 800.734.6757 � 888.908.8166 fax Tom Mathisen, PE May 28, 2014 Page 2 c. Elmhurst Avenue between Bass Lake Road and 62"d Avenue. Study the impact of construction on existing trees, retaining wails and other features in the boulevard area. 7. Coordinate the reconstruction of the following streets with the City of New Hope: a. 60"' Avenue between West Broadway and Louisiana Avenue, and b. Louisiana Avenue between Lombardy Lane and 62"d Avenue. 8. Coordinate the reconstruction of 62"d Avenue between Louisiana and Hampshire Avenues with the City of Brooklyn Park. 9. Account for the continuation of the private sanitary sewer service and driveway repair programs. 10. Coordinate with CenterPoint Energy for possible system wide upgrades. 11. Assist the City in obtaining quotes for soil investigation work. 12. Prepare for the following meetings: a. Three (3) with Engineering and Public Works Staff b. One (1) Neighborhood Open House c. One (1) coordination meeting with City of New Hope staff d. One (1) coordination meeting with City of Brooklyn Park staff e. One (1) City Council Workshop f. One (1) City Council meeting to present report findings g. One (1) Public Improvement Hearing with the City Council to present report findings We will deliver fourteen (14) final copies of the Study for your use. According to Exhibit C-3, Paragraph A of the Agreement, we will use the most recent opinion of probable construction cost for the project as approved by the owner to calculate our fee. The most recent opinion of probable cost is outlined in the following table. �'� From the attached Appendix B— Street Reconstruction Construction Unit Costs Comparison per Phase. �2� Per attached Appendix A(Revised December 7, 2012). In accordance with Appendix A dated December 7, 2012 to this Supplemental Agreement, our lump sum fee for this entire project is ca�culated on the basis of 15.12% of the total estimated construction cost or $735,907 including expenses. Per Minnesota Statutes, the report on feasibility has to be provided to the City on an hourly basis. Therefore, in accordance with Exhibit C-3, Paragraph A of the Agreement, we will provide the City with the report on feasibility for a total hourly fee of $51,591 including expenses. Tom Mathisen, PE May 28, 2014 Page 3 We will bill the City monthly on an hourly basis for services, expenses, and equipment as described in Exhibit C-1 of the Agreement. For your convenience, we include our billable cost range and schedule of expenses as Appendices C and D to this Supplemental Letter Agreement. The above financial arrangements are based on the orderly and continuous progress of the project. We will start our services promptly after receipt of your authorization of this Agreement. We anticipate fitting our work to match the following key City milestones. Item Milestone Date Authorization to Proceed June 3 City Council Workshop September 2 Deliver Study to the City September 11 Present Study to the City Council September 16 Neighborhood Open House October 9 Public Improvement Hearing October 21 We understand an estimated total project cost was established for Phase 14 as part of the Update to the 2003 Overall Study and updated based on actual street reconstruction costs per linear foot of street centerline. We understand these limitations are realistic and will try to work within those limitations. This Supplemental Letter Agreement and the Agreement represent the entire understanding between you and us in respect to the project and may only be modified in writing signed by both of us. If it satisfactorily sets forth your understanding of our agreement, please sign the enclosed copy of this letter in the space provided below and return it to us. Sincerely, SHORT ELLIOTT HENDRICKSON INC. Aaron T. Ditzler, PE Project Manager City of Crystal, Minnesota Accepted this _`_ day of _____________, 2014 By� --------------------------- Title - ------------- By Title Enclosures p:\ae\c\cryst\128041\t-genl\10-conlracts\proposal\phase 14 feas rpl proposal.docx APPENDIX A CITY OF CRYSTAL STREET RECOSTRUCITON LUMP SUM ENGINEERING SERVICES AGREEMENT AS PERCENTAGE OF FINAL CONSTRUCTION COST SHORT ELLIOTT HENDRICKSON, INC. DECEMBER 7, 2012 * Final Total Construction Engineering Feasibility Plans and Construction Cost ($) Fee (%) Study (%) Specs (%) Mgmt (%) $2,000,000 19.52% 1.37% 7.80% 10.35% $2,250,000 19.12% 1.34% 7.65% 10.13% $2,500,000 18.72% 1.31 % 7.49% 9.92% $2,750,000 18.32% 1.28% 7.33% 9.71% $3,000,000 17.92% 1.25% 7.17% 9.50% $3,250,000 17.52% 1.23% 7.00% 9.29% $3,500,000 17.12% 1.20% 6.85% 9.07% $3,750,000 16.72% 1.17% 6.69% 8•86% $4,000,000 16.32% 1.14% 6.53% 8.65% $4,250,000 15.92% 1.11 % 6.37% 8.44% $4,500,000 15.52% 1.09% 6.20% 8•23% $4,750,000 15.12% 1.06% 6.05% 8.01 % $5,000,000 14.72% 1.03% 5.89% 7•80% $5,250,000 14.32% 1.00% 5.73% 7.59% $5,500,000 13.92% 0.97% 5.57% 7•38% $5,750,000 13.52% 0.95% 5.40% 7.17% $6,000,000 13.12% 0.92% 5.25% 6.95% $6,250,000 12.72% 0.89% 5.09% 6.74% $6,500,000 12.32% 0.86% 4.93% 6.53% $6,750,000 11.92% 0.83% 4.77% 6.32% $7,000,000 11.52% 0.81% 4.60% 6.11% $7,250,040 11.12% 0.78% 4.45% 5.89% $7,500,000 10.72% 0.75% 4.29% 5.68% $7,750,000 10.32% 0.72% 4.13% 5.47% $8,000,000 9.92% 0.69% 3.97% 5.26% Final construction cost includes 15% of private driveway and sanitary sewer repair costs. Total fee will be based on Total Engineering Fee percentage column. Remaining three columns are only possible breakdowns to be used to keep cost of each phase balanced. *Revised 10-9-07 (private to 15%) *Revised 1-14-09 (Revised Percentages for Total Engineering Fee, Feasibility Study, Plans and Specs, and Construction Mgmt) *Revised 12-7-12 (Revised Percentages for Total Engineering Fee, Feasibility Study, Plans and Specs, and Construction Mgmt) P:WE\C\Cryst\Common\Master Contract\REVISED APPENDIX A 12 07 12.docx /� SEH CRYSTAL, MINNESOTA 2013 - BECKER PARK STREET RECONSTRUCTION FEASIBILITY REPORT CITY PROJECT NO. 2012-13 Appe�dix B- Street Reconstruction Construction Unit Costs Comparison Per Phase Date: March 19, 2007 Revised: March 2T, 2007; September 4, 2008; September 11, 2008; September 15, 2008 Revised: August 31, 2010; September 7, 2010; September 15, 2010; March 28, 2011; May 23, 2011 Revised: August 24, 2011; August 31, 2011; September 2, 2011; September 12, 2011; March 30, 2012 Revised: August 23, 2012; April 9, 2013 P:WE\C\Crysl\128041\t-gen1110-contracls\Proposal\re�[phase 1 thru 16 unit cosl comparison.xlsx]Unit Cost InFl Yr 3 in a row A B C D E F G H J K L M N O P Q R S T U V W X Y (1) Costs without Sanitary, Watermain, and Privaie Costs (2) Costs are in year the project was built (Phases 1-13) (3) Based on Opinion of Probable Cost (4) Not Used (5) 13 Projects over 18 years (6) Cell Formula equal to C4IB4 -1, etc. (7) Based on average annual increase in construction cost between Phase 1 and 13 (8) Based on Awarded Bid Construction Cost Street Reconstruction ConsVuclion Unit Costs Comparison Per Phase $250.00 --- . . ----------- . -----_ . � � I $225.00 � � . . . . � . � AVERAGE ANNUAL INCREASE IN - � � � � - . � . � � - - CONSTRUCTION COST BETWEEN � . �� PHASE 1 AND 13: ' $200.00 478 % (5) . . � - � - � � � ., . . . . m..� �ri - � � . . . . . �.. .:��::.N. : .. .. . . � . .th -. N. . . O$�%5.�� . ' . IL � . . . . :��. � . N- � . ...^ -�� . . m o �$150.00 . . . � . � a._ . .. . . N ' .__�.� . a � N N . N 1q �. ,-�.� .-�_: . . .� � � � , . _. 0$125.00 ..- � . . � U � � � :' O N 'N� N - - $��0.00 - �.. � IA . ., �y. � . .. . . . . . . � . � � . . . . .. . . OI $75.00 � _ _'. � . . .. . . . _ . , � . - _ . i C! OND".00 . � ' . . . � .. � � . ..W .�19�� - . . . .. . .. � � � . . � . . - . . . . . . . I $50.00 . .. �_ . . . . � . . � � � � . .. . � � , . . . � .. � i � $25.00 ... . . . ... . . .. . . .. - � . �n � �— ao rn..o c� �n a �n o r m o o � N M v �n co t` m rn m m m rn o 0 0 0 0 0 0 0 rn m m m rn o 0 0 0 0 0 0 0 0 0 0 0 0 0 � o 0 0 0 � N N N N N N N N N N N N N N N N N N N N Year ��,. �� Memorandum cit��s rni. DATE: May 2 9, 2014 TO: Mayor and City Council FROM: Kim Therres, Assistant City Manager Tom Mathisen, Public Works Director Charlie Hansen, Finance Dicector SUBJECT: Financing Mill and Overlay Projects At the May 20 Council ineeting, the Council ordered the public hearing for the Winnetka Hills Mill and Overlay (M&O) Project #2014-21, scheduled for the June 17 ineeting. Public notice of the hearing was published and mailed to affected property owners. In terms of the project schedule, it would be necessaiy to order tl�e project at the June 17 meeting in order to meet project specifications relating to cold weather for 2014 construction. It is not necessary for the Council to finalize the details of the tinancing plan prior to ordering the project. The project would be brought back to the Council on July 15 to consider tlle bids and project award. At its May 6th and 20th work sessions the Council continued to discuss options for tinancing t h i s c u r r e n t a n d f u t u t• e M& O proj ects. Milling and overlays are required to inaintain the reconstructed streets in good condition as long as possible. The attached Council Resolution #2010-48 and Exhibit C established the policy for special assessing 100% of M&O projects. If the projects is to go forward, and a policy other than the existing one is to be used, that change would have to be done by an amending t•esolution. Minnesota State Aid Road (MSA) funds are currently committed to the Street Reconsti�uction Fund through 2018 in order to complete the partial funding of the remaining 3 Phases 14- 16 S treet R econstruction P rograin . After that date, the MSA funds are scheduled for the Street Maintenance Fund to contribute to the sealcoating projects for the reconstructed sh•eets. Mill and overlayed streets will receive one sealcoat at 7 or 8 years o f 1 i fe , d e p e n d i n g o n c o n d i t i o n. The road condition will then be re-evaluated at 14 years to determine whether a second sealcoat is appropriate. M& O projects are designed to have at least a 15 yeai• lifespan, depending on subsurface soil conditions in any specific area. But the sequencing of any M&O project will not necessarily follow the order of the original phased reconsh�uction projects. At this point however, based on ongoing conditions, it appeai•s that the first four projects will need to be in that Phase 1— 4 order. At its work sessions, the Council discussed using a tax levy to pay for M&O projects rather than using special assessments. The cost of the Phase 1 Winnetka Hills Neighborhood project is estimated at $1 million. Iftaxes were used to pay for this and assuming all existing seivice levels are maintained, it would require a levy increase of approximately 11- 12%. Depending on future mill and overlay project cost, some levy would have to be maintained in future years to continue to pay for future mill and overlay projects. The costs of the first four projects are estiinated as shown below: ?014 Phas� l `}� 1,OOC).000 ?01 S Phase 2 � 1 ?70_OOU ?O l 6 Phase > � 1. �6�.UOU 2017 i'hase �4 `� �)O3,OUO I3ased on thc aho��c estimate;cl costs it is se�r� h��«- th� Icv�� w��tld ��ar�' from one vear to tl�e nc�t. 1 �� 1'has� > is pl�i into ihc mi�_ scheduled 1��r� ?0?0 at an estimatcd cost c�f a}�prolimatelv �760.U0O. tllc levl� amotmt could be di��ided over a period ��i�7 v�ars at an cstimated �t�.erage annual amo�u�t o1� $7�6,OOU. Under the current policy with 100% assessment, the cost of the Phase 1 M&O assessment is estimated at $2,000 per residential lot. A 10 year assessment period would mean a payment of approximately $300 each year, declining each year to $210 in the 10`�' year. The 10 year period would create an overlap for the sealcoat at year 7 or 8, which would require the Street Maintenance Fund to pay for this initial sealcoat. Any second sealcoat would then be 100% assessed, using the original sealcoat policy established in the 1970's. As an altet-native, the Council could choose to adopt a policy similar to ongoing street reconstruction and alley reconstruction policies where a combination of approximately 60% special assessment and 40% from other funding sources is used. In the mill and overlay case, the 40% could come from a general annual levy, which average over the first 7 years of projects becomes an annual levy of $302,000. This would be a compromise especially for those who are still paying on their street assessment or those who have not even started that payment. The Council should continue its discussion of financing mill and overlay projects. RESOLUTION NO. 2010 - 48 ADOPTING ASSESSMENT POLICIES FOR 2010 36TH AVENUE AND FUTURE STATE AID AND LOCAL STREET MILL AND OVERLAY PROJECTS WHEREAS, due to normal wear and weather related detecioration, it has become necessary to perform a mill and oveclay project on the State Aid Street 36� n Avenue in the year 2010, and it is therefore necessary to develop a funding mechanism foc said project, and it has been determined that a special assessment for a portion of that funding is appropriate; and WHEREAS, the City has no previously established assessment policy for mill and overlay projects, howevec there are established policies for similar street related projects as shown in Exhibit A; and WHEREAS, the affected properties in the 36�i, Avenue project have not previously been assessed for street reconstruction other than a minimal amount for curb and gutter and sidewalks in the early 1990's, yet all properties on the adjoining side streets have since been assessed for full street reconstruction, and therefore it is desirable to treat the 36�n Avenue properties in a similar fashion; and WHEREAS, in previous full street reconstruction projects, single family/duplex properties received an approximate 30% reduction in the assessment by using State Aid, Storm Drain Utility, and othec funding sources, and comer lots abutting 36' n Avenue have previously been assessed in the manner described in Exhibit A; and WHCREAS, it is desirable to develop a 36�n Avenue assessment policy that can be modified to apply to future State Aid and local street mill and overlay projects. NOW, THEREFORE, BE IT RESOLVED, by the Crystal City Council: 1) The properties abutting 36�nAvenue shall be assessed in a manner similar to a full stceet reconstruction pt•oject, however such assessment shall be based on the lower actual cost for said mill and overlay project. 2) 36�, Avenue comer single family/duplex properties with driveways on 36� n Avenue shall be assessed at one-half the unit assessment rate because these properties have pceviously been assessed one-half a u n i t street reconstruction rate. 3) Similarly, 36' n Avenue comec single family/duplex properties with driveways on the side street shall not be assessed for the 36�n Avenue project because these properties have previously been assessed one full unit street reconstruction rate. 4) Commercial and non-profit properties shall be assessed for the full cost of the project based on a per front foot unit cost for the entire front footage abutting the project area. 5) The assessment policy for the 36th Avenue project shall be as described in Exhibit B. 6) The assessment policy for future mill and overlay projects on State Aid and local streets shall be as described in Exhibit C. 7) In the future, when it is necessary to either mill and overlay, or reconstruct portions of 36th Avenue, assessment rates for both commercial and non-profit, and single family/duplex properties shall be determined based on the most recent large mill and oveclay or reconstruct projects respectively, adjusted for inflation, as if 36th Avenue were a standard 32 foot wide State Aid Street in the City. Adopted by the Crystal City Council this is� day of June, 2010. i� ',, ` � , � _ _— '- .- i• '�. � ATTEST: r.� L �,.vr� - J et Lewis, City Clerk I:Pubworks/projects/2009/36 overlay/adoptassmntpolicyres EXHIBIT A CITY OF CRYSTAL SPECIAL ASSESSMENT POLICIES AS THEY RELATE TO STREET MAINTENANCE AND RECONSTRtJCTION AND ALLEY RECONSTRUCTION June 2010 Total construction cost includes contractor and material costs, plus feasibility, engineering design, legal, project management, bonding, levy, and other related costs. Front footage is measured at the property line. Front footage is a measurement based on both sides of the street, not street centerline footage. Assessed Sealcoat 1. Non-corner single family/duplex properties are assessed on a per unit cost . based on total project construction cost per front foot for the entire project. The total single family/duplex properties front footage times the cost per front foot divided by the number of net whole single family/duplex properties determines the cost per unit. 2. Single family/duplex corner properties are assessed at the same unit cost as for non-corner properties. 3. Commercial/non-profit properties (including churches) are assessed based on total project construction cost per front foot for the entir•e project times the number of front feet for a given parcel. 4. Commercial/non-profit corner properties are assessed based on the entire front footage of both sides of the property. Alle,y Reconstruction 1. Alley reconstruction assessments are based on 60% of the total construction cost. The remaining 40% is paid by the Storm Drain Utility. This applies to single family/duplex and C/N-P properties alike. 2. Alley reconstruction is assessed in a manner similar to sealcoat. Non-corner single family/duplex properties are assessed on a per unit cost based on 60% of the total construction cost per front foot for the entire project. The total single family/duplex properties front footage times the cost per front foot divided by the number of net whole single family/duplex properties determines the cost per unit. 3. Single family/duplex corner properties are assessed at the same per unit cost. 4. C/N-P properties (including churches) are assessed based on 60% of the total project construction cost per fi�ont foot for the entire project times the number of front feet for a given parcel. 5. C/N-P corner properties are assessed based on the entire front footage of both sides of the property were there to be an alley project on two sides of a corner property. Street Reconstruction Street reconstruction projects have two assessment categories. The first is the street construction assessment, which is assessed in a manner similar to sealcoat assessments, i.e. a per unit basis for single family/duplex, and a per front foot basis for C/N-P properties. Street construction includes all construction work associated with the project, including storm drainage work, but not including curb and gutter work. The second category is the curb and gutter assessment which is assessed on a front foot basis at a rate based on the status of the existing or non-existing curb. Single family/duplex properties receive a credit of approximately 30% of the actual street construction cost portion (per unit cost) of the assessment based on State Aid and Storm Drain Utility Funds that are distributed equally across said properties on a per unit basis. 1. Properties with frontage on a Municipal State Aid Street are assessed in the same manner as properties on non-State Aid municipal streets. For the purposes of this document, and unless differentiated otherwise, "local street" includes both State Aid and non-State Aid municipal street frontages. 2. Single family/duplex properties are assessed for the street reconstruction portion on a per unit cost based on total street construction cost per front foot for the entire project. The total single family/duplex properties front footage times the cost per front foot divided by the number of net whole single family/duplex properties determines the per unit cost. 3. Non-corner single family/duplex properties are assessed on a per unit cost basis for the street reconstruction portion, regardless of length of front footage. Curb and gutter is assessed on a total cost per front foot basis and the 30% reduction is not applicable. 4. C/N-P properties are assessed on a front foot basis for both street and curb and gutter assessments, and the 30% reduction does not apply. 5. A single family/duplex corner property that has its driveway on a county road is assessed one half of the unit street cost for local street reconstruction and the standard amount for curb and gutter. 6. A single family/duplex corner property that has its driveway on a local street with the other side on a county road is assessed at the full unit street cost and the standard amount for curb and gutter. 7. A single family/duplex corner property with both sides on a local street and within the project area, is assessed one full unit street cost, and for curb and gutter based on the full length of the short side (regardless of which way the front door faces), and one-third of the first 135 feet and 100% of any length beyond l35 feet on the long side. 8. A single family/duplex corner property with both sides on a local street, but only one side in the project area, is assessed one-half of the unit street cost and the standard amount for curb and gutter on the reconstructed side. The balance to be assessed when the other local street side is reconstructed. 9. All properties with any frontage on a county road are not assessed for the county road portion when the county road is rebuilt. 10. Three or more properties with frontage and driveways on an unimproved street will have the street built to local street standards and are assessed at the standard rates. If only two of the three properties have driveways on the unimproved street, the two properties may petition to have the street built to local street standards as part of the larger project, and be assessed accordingly. The third property would be a corner parcel and would be assessed accordingly. If there is no petition, then the private driveways in the right of way remain the responsibility of the property owners. 11. For the two or less unimproved street parcel situation, a corner parcel with frontage on an improved street, regardless of what side the driveway is on, is assessed one full unit street cost and the standard amount for curb and gutter. If the parcel has no improved street frontage, the parcel receives no assessment, however the private driveway located in the unimproved right of way is the responsibility of the property owner and is not improved as part of the project. 12.Non-corner single family/duplex parcels with frontages on two streets (front and back yard for example) are assessed in the same manner as a corner lot, including the long and short side curb and gutter policy. 13. There are three curb and gutter assessment rates that apply equally to single family/duplex and C/N-P properties: • Properties with no existing curb and gutter are assessed at the full curb and gutter rate. • Properties with the old "D" mountable style curb are assessed at 75% of the full rate. • Properties with the city standard "B618" curb are assessed at a "reincorporation" rate specific to each project based on estimated removal and replacement costs. This rate is approximately 25% of the full rate. IC : CITY OF CRYSTAL SPECIAL ASSESSMENT POLICY FOR THE NIILL AND OVERLAY OF STATE AID S"1REET 36TH AVENUE June 2010 Total mill and overlay construction cost includes contractor and material costs for asphalt and curb and gutter and sidewalk repair, plus feasibility, engineering design, legal, project management, bonding, levy, and other related costs. Front footage is measured at the property line. Total project front footage is a measurement based on both sides of the street, not street centerline footage and includes single family/duplex corner lots with driveways on the side street even though those corner lot properties will not be assessed as part of the project. Total single family/duplex properties front footage is the total of all single family/duplex front footages, including those with driveways on the local side street. Single family/duplex properties receive a credit of approximately 30% of the actual mill and overlay cost of the assessment based on State Aid Funds that are distributed equally across said properties on a per unit basis. The credit is due to this project being treated as a reconstruction and not a maintenance project. 1. Single family/duplex properties are assessed for mill and overlay on a per unit cost based on total construction cost per front foot for the entire project less approximately 30%. The total single family/duplex properties front footage times this revised cost per front foot divided by the number of net whole parcels of single family/duplex properties (excluding corner parcels with driveways on the side local street) determines the per unit cost. 2. Non-corner single family/duplex properties are assessed on this per unit cost basis for mill and overlay regardless of length of front footage. 3. Commercial/non-profit properties (including churches) are assessed based on total project construction cost per front foot for the entire project times the number of front feet for a given parcel. The 30% reduction does not apply. 4. Single family/duplex corner properties that have driveways on 36th Avenue are assessed one half of the unit mill and overlay cost. These properties have already been assessed for a one half unit of street reconstruction on the local street. 5. Single family/duplex corner properties that have driveways on a local street with the other side on 36th Avenue, have already paid a full street assessment. These properties will not be assessed for the 36th Avenue mill and overlay project. They will receive a full unit mill and overlay assessment when their respective local street is mill and overlayed. 6. In the future when it is necessary to mill and overlay 36th Avenue again, the assessment rates for both commercial and single family/duplex properties will be determined based on the most recent large overlay project that included a combination of local and state aid streets, adjusted for inflation. 7. In the future when it is necessary to do a total reconstruct of 36th Avenue, the assessment rates for both commercial and single family/duplex properties will be determined based on the most recent large total reconstruct project that included a combination of local and state aid streets, adjusted for inflation. EXHIBIT C CITY OF CRYSTAL SPECIAL ASSESSMENT POLICY FOR THE MILL AND OVERLAY OF STATE AID AND LOCAL STREETS (EXCLUDING THE 2010 36TH AVENUE PROJECT) June 2010 Total mill and overlay construction cost includes contractor and material costs for asphalt and curb and gutter and sidewalk repair, plus feasibility, engineering design, legal, project management, bonding, levy, and other related costs. Front footage is measured at the property line. Front footage is a measurement based on both sides of the street, not street centerline footage. 1. Non-corner single family/duplex properties are assessed on a per unit cost based on total project construction cost per front foot for the entire project. The total single family/duplex properties front footage times the cost per front foot divided by the number of net whole single family/duplex properties determines the cost per unit. In determining the cost per unit, corner lots with only one side being overlayed are counted as one-half unit, and corner lots with both sides being overlayed are counted as a full unit. 2. Single family/duplex corner properties are assessed at the same unit cost as for non-corner properties. These properties receive a full unit assessment if both sides are being overlayed, and one-half unit if only one side is being overlayed. ;. 3�c�, Avenue Frontage Exceptions: Corner lots with driveways fronting on 3�tn Avenue are assessed at one-half of the side street rate when the side street is overlayed. Corner lots with driveways fronting on the side street are assessed one full unit when the side street is overlayed. 4. Commercial/non-profit properties (including churches) are assessed based on total project construction cost per fi•ont foot for the entire project times the number of front feet for a given parcel. 5. Commercial/non-profit corner properties are assessed based on the entire front footage of both sides of the property. 1:/pubworks/proj ects/2009/36thOverl ay/Assessmentpo I i ci es2 Fund: Street Reconstruction Fund Fund Number: 415 DESCRIPTION OF ACTIVITY The Street Reconstruction Fund accounts for the cost of reconstructing streets in the Crystal Local Street Reconstruction program. City streets were divided into sixteen phases for reconstruction. A phase is reconstructed in most years, with an occasional pause for planning. Phases 1 through 13 were reconstructed between 1994 and 2013. Generally speaking, each phase has balanced budget. However, special assessments and state aid revenues often are not received until several years after the project is completed. This will cause the Street Reconstruction Fund to show deficits until after all phases are completed and the lagging revenues are collected .. Funding Sources Special assessments State aid for streets Interest Income Other city reimbursement Utility reimbursement Sale of bonds Total Funding Sources Capital Outlays Admin & pavement study Phase 13, Becker Park Phase 14, Lions Park Phase 15, Twin Oaks Phase 16, Skyway Total Capital Outlays Surplus/ -Deficit Five Year Capital Improvement Plan 2014 344,572 320,000 25,398 322,136 0 0 1,012,106 16,900 566,077 2015 1,207,190 600,000 38,020 0 474, 591 2,535,498 4,855,299 1, 950 2016 1,678,730 600,000 40,442 183,254 657,025 4,022,355 7, 181,806 2,000 2017 1, 898, 359 600,000 56,440 0 987,514 4,019,689 7,562,002 19,050 2018 623,818 100,000 34,658 340,110 0 0 1,098,586 2,100 221,335 4,884,481 1,187,919 227,168 5,497,878 1,478,894 25 000 230 370 6 790,096 2,051 762 804,312 5,138,599 6,918,167 8,288,040 2,053,862 207,794 -283,300 263,639 -726,038 -955,276 Fund: Street Maintenance Fund Fund Number: 410 DESCRIPTION OF ACTIVITY The Street Maintenance Fund accounts for the cost of seal coating streets that have been reconstructed under the Crystal Local Street Reconstruction program. A commitment was made to the citizens at the start of the street reconstruction program that they wouldn't be assessed for maintenance of the streets while they were still paying the assessment for street reconstruction. Seal coat projects will be assessed to property owners if they take place after the reconstruction assessments have been paid. Pavement mill & overiay projects are an essential part of a long term street maintenance program. Overlays will be assessed to the property owners (street reconstruction assessments will be paid off by then). In addition to seal coat projects, this fund also accounts for intensified maintenance that is needed Phases 1, 2 and 3 because this pavement is deteriorating faster than expected. Costs will continue until the phases undergo mill and overlay. The streets will also need more frequent seal coating until they undergo the mill and overlay. Five Year Caaital Imarovement Plan Funding Sources Special assessments Interest Income Other city reimbursement State Aid Streets General Fund transfer Total Funding Sources Capital Outlays Street Phase 1-3 patching Phases 4 & 8 sealcoat Phases 5 & 9 sealcoat Phases 10 sealcoat Phase 1 mill & overlay Phase 2 mill & overlay Phase 3 mill & overlay Phase 4 mill & overlay Total Capital Outlays 2014 2015 2016 30,364 499,084 18,461 15,759 451,581 12,532 41,553 2017 2018 392, 361 536,936 p 7,306 103,432 528,000 72 800 74 984 77 234 79,551 81,937 121,625 589,827 582,900 575,344 1,154,179 50,000 12,000 277,106 250,990 226,399 802,938 1,001,845 1,061,333 776,973 1,130,044 1,013,845 1,312,323 226,399 776,973 Surplus/ -Deficit -1,008,419 -424,018 -729,423 348,945 377,206 COUNCIL STAFF REPORT CITYof proposed Winnetka Hills Miil and Overlay CRY5TAL FROM: Tom Mathisen, Public Works Director & City Engineer TO: Anne Norris, City Manager (for June 3 City Council Work Session) DATE: May 30, 2014 RE: Project #2014-21 Phase 1Mill and Overlay (M & O) Work Session #3 The Council will continue its discussion of the above project at a June 3 work session. At the May 20 meeting the Council ordered the public hearing on the project which is scheduled for June 17. A map of the project area is attached. A neighborhood meeting was held at City Hall Thursday evening, May 29. Of the 489 property owners that were notified, six (1.2%) attended. Copies of the mailed documents are attached. There were questions regarding the need for the project and why there were issues with the top layer of asphalt. There were also questions as to why owners were being asked to pay again because they paid to have the street rebuilt 20 years ago. Four of the six in attendance were owners at the time of the 1995 project. By the end of the meeting, three owners were against the project or at least felt they should not be assessed, and the other three were either in favor or indifferent. spectfully sub itt , ' , � Thomas A. Mat isen City Engineer i:/pubworks/projects/2014/2014-21 Winnetka Hills Phase 1 Mill Overlay/milloverlayworksessmem3 . .« •.; • • ; � # i • "i � j �' � �r ' ' •�• -;� : i '` • ! � � 0 250 500 760 1000 Feet A �� ► � :� � . '.J � � 1 ��,��m� �:'siw� �..:... Z W Y aaei` d � Z 'I Z , � 30TH AVE '] x z �.��:��. �:'� �.. x - - r� � . � . � , . ..; � . ��r . :: - � . � r . � � ' �; � •` - 1 May 21, 2014 'I'O: Property Owners and Residents of the 2014 — Winnetka Hills Neighborhood Mill and Overlay, Project #2014-21 FROM: City of Crystal Engineering Department MEETING NU. 1 Reference: What: Open House When: Thursday, May 29, 2014; 6:30 p.m. to 8:3Q p.m. Where: Crystal City Hall, 4141 Douglas Drive, Crystal, MN 55422 The attached map shows the location of the Winnetka I�ills Phase 1 Street Mill and Overlay Project (the removal and replacement of all of the top and part of the 2°d layer of asphalt), that is scheduled for your neighborhood this l�te summer and early fall. You are cordially invited to meet with city officials to review the propased improvements and funding as it affects your property. Praject team members will be available to answer your questions and abtain your input. The estimated cost ta your property will be discussed along with how it can be paid. The project schedule will also be discussed. The Winnetka Hills Phase 1 Street Reconstruction Project occurred in 1995. Properties were special assessed for this work over a 15 year period that expired in 2010. Since then, the area was sealcoated in 2003 and 2010, at na cost to the property owner. Surface repair has been angoing the last five years. In 201Q, as part of the 36't' Avenue mill and overlay project, the City Council adopted a policy that uses special assessments to fund lacal street mi11 and overlay projects. The policy speciiies thatthe full cost of the mill and overlay work is to be special assessed ta the benefitting properties. The total construction cost for this 2014 project is estimated at $954,338. The assessment for corner and mid- black single family and/or duplex lots completely bounded by the improvement area, is estimated to be $1,975 per lat, and for carner single family/or duplex lots abutting county roads or streets not included in the improvem�nt area is estimated to be $987.54. Assessments would be levied over a period of 10 years at an interest rate of approximately 5%, payable beginning with 2015 property taxes. The meeting format is an informal open house, so please came at your convenience. However, there will be a formal presentation and discussion period from 7:00 p.m. to 7:30 p.m. MEETING NO. 2 Reference: What: Public Improvement Hearing When: Tuesday, June17, 2014; 7:00 p.m. Where: Crystal City Hall, Council Chambers 4141 Douglas Drive, Crystal, MN The Crystal City Council will conduct a public improvement hearing to consider authorizing the project and the approval of the final design. A detailed notice of this meeting is enclosed. The notice includes information on the cost of your estimated assessment. Options for the payment of your assessment will be presented at the hearing. We look forward to seeing you at the Open House and Public Improvement Hearing meetings. If you have questions at any time, please call City Project Manager Mick Cyert at City Hall (763.531.1161 or mick.cyert e,crystalmn.gov). I:pubworks/projects/2014/Winnetka Hills Overlay/Mtg Invite-Notice of Hearing Winnetka Hills.doc CITY OF CRYSTAL NOTICE OF HEARING ON STREET MILL AND OVERLAY WINNETKA HILLS NEIGHBORHOOD PROJECT # 2014-21 To be Held on Tuesday, June 17, 2014 TO WHOM IT MAY CONCERN: Notice is hereby given that the City Council of Crystal, Minnesota will meet in the council chambers of City Hall, 4141 Douglas Drive Noi�th, at 7:00 p.m. on Tuesday, June 17, 2014, to consider ordering the project to resurface the streets of the Winnetka Hills Neighborhood. The work area is bounded on the east by Winnetka Avenue N, and on the west, north and south by Crystal's cooperate limits with the City of New Hope, pursuant to Minnesota Statutes, Sections 429.011 to 429.111. The work includes curb and gutter repair, sanitary and storm sewer manhole repair, asphalt base reconditioning, milling and asphalt repaving of approximately two inches of the existing street section, and re-striping. All areas described above are proposed to be assessed for such improvements (33�d Avenue from Xylon Avenue N. to Boone Avenue N. is not included in the work). The total construction cost is estimated at $954,338. The assessment for corner and mid-block single family and/or duplex lots completely within the improvement area is estimated to be $1,975.00 per lot, and for corner single family/or duplex lots with one side abutting a county road or local street not included in the improvement area is estimated to be $987.50. This is not the assessment hearing (which would be conducted in early fa112014), but rather the public improvement hearing to order the project construction. Such persons as desire to be heard with reference to the proposed improvement will be heard at this meeting. A copy of the report on feasibility for this project is available for review at the Crystal City Hall. Dated May 20, 2014 By Order of the City Council City of Crystal Christina Serres, City Clerk (Published in Crystal-Robbinsdale Sun Post on May 29 and June 5, 2014.) THE ASSISTANT CITY MANAGER'S COMMENTS ARE BOLDED. �� I � � * �.� .. - � � 11 • I. CALL TO ORDER ROLL CALL AND PLEDGE OF ALLEGIANCE II. COUNCIL MEETING MINUTES The Council will consider the minutes from the following meetings in a single motion: a. The Regular City Council Meeting from May 20, 2014; and b. Two Council Work Sessions from May 20, 2014. III. CONSENT AGENDA The Council will consider the following items, which are routine and non-controversial in nature, in a single motion: 1. Approval of the list of license applications submitted by the City Clerk to the City Council, a list that is on file in the office of the City Clerk; 2. Approval of disbursements over $25,000 submitted by the Finance Director to the City Council, a list that is on file in the office of the Finance Director; 3. Approval of a resolution accepting a donation of $750 from Minneapolis Elk �odge #44 for costs associated with the Crystal Airport Open House; 4. Approval of a resolution accepting a donation of $500 from West Metro Fire-Rescue District Fire Relief Association for costs associated with the Crystal Airport Open House; 5. Approval of a resolution accepting a donation of $300 from Brooklyn Center American Legion Post 630 for costs associated with the Crystal Airport Open House; 6. Approval of a request for authorization to temporarily close Bass Lake Road between County Road 81 and Sherburne Avenue during a fireworks display on July 25 and 26, from 9:45 p.m. - 10:45 p.m., submitted by the Crystal Frolics Committee; 7. Approval of a request for live music at Becker Park on Thursday, July 24 from 6-9 p.m., Friday, July 25 from 7-11:30 p.m., Saturday, July 26 from 7-11:30 p.m., and Sunday, July 27 from 1:30-4:30 p.m., submitted by the Crystal Frolics Committee; 8. Approval of a resolution for lawful gambling at Becker Park for Crystal Frolics on July 24 — 27, 2014, submitted by the Crystal �ions; Crystal City Council Meeting Agenda June 3, 2014 9. Approval of a temporary on-sale liquor license at Becker Park for the Crystal Frolics on July 24-27, 2014, submitted by the Crystal Lions, contingent upon receipt of required liquor liability insurance; and 10. Approval of a temporary on-sale liquor license at Welcome Park for the Crystal Frolics on July 25-27, 2014, submitted by the Crystal �ions, contingent upon receipt of required liquor liability insurance. IV. PUBLIC HEARING 1. The Mayor will open a public hearing to receive comment and Council consideration of a new off sale liquor license located at 5924 West Broadway submitted by Kai's Liquor of Brooklyn Park, Inc. d.b.a. Red Dragon Liquors. Ownership of Red Dragon Liquors is changing and the new owner has provided all the necessary information and the background investigation is complete. Recommend approval of the off-sale liquor license for 5924 West Broadway. V. REGULAR AGENDA 1. The Council will consider the 2013 Comprehensive Annual Financial Report presented by Kern, DeWenter, and Viere, �td. The annual financial report will be presented by Andrew Grice of KDV. 2. The Council will consider bids and a resolution awarding contract for 2014 Alley Reconstruction Project No. 2014-07. We received three competitive bids for this year's alley reconstruction project. Recommend approval of the resolution awarding the bid to the low bidder, Concrete Idea, Inc. 3. The Council will consider a resolution ordering the Phase 14 North Lions Park Street Reconstruction Feasibility Study. A brief presentation will be made on resuming the Street Reconstruction program. Recommend approval of the resolution ordering the preparation of the feasibility study for the North Lions Park Phase 14 Project. VI. OPEN FORUM (Open forum is a time for individuals in the audience to address the Council on subjects not on the regular Council agenda. Individuals are asked to step up to the podium and speak clearly into the microphone. You are allowed 3 minutes to make your comments and no items may be addressed more than ten minutes. The Council will not take action on items discussed during open forum or discuss matters under pending or threatened litigation; however, the Council may add the item to a future meeting agenda and ask city staff for follow-up. Page 2 of 3 Crystal City Council Meeting Agenda June 3, 2014 No comments will be taken during tonight's Open Forum regarding the Ramirez matter. The Council is well aware of the issues and concerns of inembers of the community group, Communities United Against Police Brutality and Crystal residents. The group's members have attended many city council meetings and have been in contact by telephone, email and written letter. The city has responded many times to requests for information. The city will provide any public information available in the future. Citizens are invited to communicate with city staff or the Mayor and Council by email or letter about this or any other topic.) VI1. INFORMATION AND DISCUSSION a) The Crystal Cove Aquatic Center opens for the season on Saturday, June 7. b) The Crystal Airport Open House will be held on Sunday, June 15 from 8:00 a.m. - 3:00 p.m. c) The next City Council Meeting begins at �:00 p.m. on Tuesday, June 17, in the Council Chambers at City Hall. d) The Crystal Business Association meets on Wednesday, June 18, at 8:30 a.m. at Crystal City Hall. e) Busking Becker will be held on June 19 and August 14 at Becker Park from 6:00 — 8:00 p.m. VIII. ADJOURNMENT IX. MEETING SCHEDU�E ON JUNE 3 2014 �, t, t. t. t. t. t. t. t., ;j t t, t t. t. ,, t, t t t t. t., t. t. t. t., t t. t. t� t t t., ; t t. t. t: t, t, t t. t. t,;, ?i {tE�#�E��SE ..�sv�E ESEi�E�#� i.c...3.. � �� ,�„�,. ..� � ,�„�„� � ,�„�„� � � . ,:cl � ,�,.. ..,,� � �. 11 �. �. .Y � �. 7. 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Mayor Adams called the meeting to order. I. ATTENDANCE The city clerk recorded the attendance with the following members: COUNCI�: Peak, Selton, Adams, Budziszewski, Deshler, Hoffmann, an STAFF: City Manager A. Norris, Assistant City Manager/Human Resources Manager K. Therres, Public Works Director T. Mathisen, Finance Directc�r C. Hansen, Police Chief S. Revering, Deputy Chief M. Meehan, City Attorney M. Narton and City Clerk C. Serres. II. AGENDA The Council and staff continued discussion of financing for mill and overlay projects. III. ADJOURNMENT The work session adjourned at 6:58 p.m. ATTEST: Ci Jim Adams, Mayor Crystal City Council Meeting Minutes May 20, 2014 2730 I. CALL TO ORDER ROLL CALL AND PLEDGE OF ALLEGIANCE Pursuant to due call and notice thereof, the Regular Meeting of the Crystal City Council was held on Tuesday, May 20, 2014 at 7:00 p.m. in the Council Chambers at 4141 Douglas Drive in Crystal, Minnesota. Mayor Adams called the meeting to order. :• �� Mayor Adams asked the city clerk to call the roll for elected officials. Upon roll call, the city clerk recorded the following attendance: � � City ng :n >ve Motion carried. IV. CONSENT AGENDA The Council considered the following items, which are routine and non-controversial in nature, in a single motion: Crystal City Council Meeting Minutes May 20, 2014 2731 IV. CONSENT AGENDA CONTINUED 1. Approval of the list of license applications submitted by the City Clerk to the City Council, a list that is on file in the office of the City Clerk; 2. Approval of disbursements over $25,000 submitted by the Finance Director to the City Council, a list that is on file in the office of the Finance Director; 3. Approval of Resolution No. 2014-35, accepting a donation of $1,000 from Crystal VFW Post 494 for costs associated with the Crystal Airport Open House; 4. Acceptance of Kevin Biglin's resignation from the Environmental Qual Commission, effective May 7, 2014; and 5. Acceptance of David Harlow's resignation from the Human Rig effective May 14, 2014. Moved by Councilmember Deshler and seconded by Councilmeml the consent agenda. to approve Motion carried. V. PUB�IC HEARWG 1. The Mayor announced the purpose of the Public Hearing: The consideration of a new pawnbroker license located at 5508 West Broadway, submitted by Mr. Greg Daniel of Brauo Financial, LLC. Moved by Councilmemb continue the hearing reg meeting on June 17, 20' Voting aye: Peak, Seltc VI. REGULAR � 1. The. Cou �ENDA hler the �'i �ded by Councilmember Peak to pawnbroker license until the Council udziszewski, Deshler, Hoffmann, and Libby. Motion carried. considered appointing Dave Anderson to the Environmental Quality for an unexpired term to expire on December 31, 2015. Applicant Dave Anderson addressed the Council and answered questions. Moved by Councilmember Hoffmann and seconded by Councilmember Selton to approve the appointment of Dave Anderson to the Environmental Quality Commission for an unexpired term to expire on December 31, 2015. Voting aye: Peak, Selton, Adams, Budziszewski, Deshler, Hoffmann, and Libby. Motion carried. Crystal City Council Meeting Minutes May 20, 2014 2732 VI. REGULAR AGENDA CONTINUED 2. The Council considered a resolution authorizing the issuance, sale, and delivery of revenue bonds relating to the Cavanagh Apartments project; and approving the form of and authorizing the execution and delivery of certain documents relating to the revenue bonds. Community Development Director P. Peters addressed the Council and answered questions. Moved by Councilmember Hoffmann and seconded by Councilme� adopt the following resolution, the reading of which was dispensed unanimous consent: RESOLUTION NO. 2014 — 36 AUTHORIZING THE ISSUANCE, SALE, AND DELIVERY OF REVE RE�ATWG TO THE CAVANAGH APARTMENTS PROJECT; AND THE FORM OF AND AUTHORIZING THE EXECUTIONAN� �E CERTAIN DOCUMENTS RE�ATWG TO THE'REVENUE B Selton to )E BONDS PROVING ERY OF DS Voting aye: Peak, Selton, Adams, Budziszewski, D�shler, Haffmann, and �ibby. Motion carried, resolution declared adopted. 3. The Council considered a resolution accepting the Feasibility Report and ordering a Public Hearing for Project #2014-21; Phase 1(Winnetka Hills) Mill and Overlay. Public Works Director T. Mathisen add'ressed the Council and answered questions. Moved by Councilmember Peak and seconded by Councilmember �ibby to adopt the following resolution, the re�ding of which was dispensed with by unanimous consent: RESOLUTION NO. 2014 — 37 , RECE'1VE 2014 — STREET MILL AND OVERLAY FEASIBI�ITY REPORT AND ORDER HEARWG ON IMPROVEMENT WINNETKA HI��S (PHASE 1) NEIGHBORHOOD PROJECT #2014-21 Voting aye: Peak, Selton, Adams, Budziszewski, Deshler, Hoffmann, and Libby. Motion carried, resolution declared adopted. 4. The Council considered a resolution commending Crystal Police Officer �isa Vague. Chief Revering addressed the Council and shared details regarding Officer Vague's retirement party. Crystal City Council Meeting Minutes May 20, 2014 2733 VI. REGULAR AGENDA CONTINUED Moved by Councilmember Libby and seconded by Councilmember Budziszewski to adopt the following resolution, the reading of which was dispensed with by unanimous consent: RESOLUTION NO. 2014 — 38 RESOLUTION COMMENDING PO�ICE OFFICER �ISA VAGUE Voting aye: Peak, Selton, Adams, Budziszewski, Deshler, Noffmann, and �ibby. Motion carried, resolution declaretl adopted. VII. OPEN FORUM No public comment was given during open forum. VIII. INFORMATION AND DISCUSSION Mayor Adams read the following announcements: a) The Crystal Business Association a.m. at Crystal Care Center. b) City Offices will be closed in Monday, May 26. c) There are two Quad May 26: Wednesday, May 21, at 8:30 the Memorial Day holiday on Yellow Ribbon Memorial Day events on • 11:00 a.m. — Memorial Service, Chester Bird American Legion, Golden Valley ■ 1:00 p.m. — Mernori�l Service, Washburn McReavy GlenHaven, Crystal he next City Council Meeting begins at 7:00 p.m. on Tuesday, June 3, in �e Council Chambers at City Hall. e) The Crystal Cove Aquatic Center opens for the season on Saturday, June 7. The Crystal Airport Open House will be held on Sunday, June 15 from 8:00 a.m. - 3:00 p.m. Councilmember Deshler announced that the Official Quad Cities Beyond the Yellow Ribbon Proclamation ceremony will be held at 10:30 a.m. at the Crystal Airport Open House. Councilmember Peak announced that there will be a picnic at Forest Park on Sunday, May 25 at 2:00 p.m. Crystal City Council Meeting Minutes May 20, 2014 2734 IX. ADJOURNMENT Moved by Councilmember Budziszewski and seconded by Councilmember Deshler to adjourn the meeting. The meeting adjourned at 7:40 p.m. ATTEST: Chrissy Serres, City Clerk Motion carried. Jim Adams, Ma Crystal City Council Second Work Session minutes May 20, 2014 2735 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 7:50 p.m. on Tuesday, May 20, 2014 in Conference Room A at City Hall located at 4141 Douglas Drive, Crystal, Minnesota. Mayor Adams called the meeting to order. I. ATTENDANCE The city clerk recorded the attendance with the following members: COUNCI�: Peak, Selton, Adams, Budziszewski, Deshler, Hoffmann, and Libby. STAFF: City Manager A. Norris, Assistant City Manager/Human Resources Manager K. Therres, Community Development Director P. Peters, Police Chief S. , Revering, Deputy Chief M. Meehan and City Clerk C. Serres. II. AGENDA The Council and staff discussed the following agenda items: • Formal comments on Bottineau Transitway Draft Environmental Impact Statement (DEIS) • Changes to City Code regarding securing ignitic�ns • Commission liaisons reports/updates III. ADJOURNMENT The work session adjourned at 8:54 .� p.m. Jim Adams, Mayor .. , � ... ., ..l. _ � , ..l. ■ ..... ! COUNCIL STAFF REPORT � � �� ,��, Consent Agenda: June 3, 2014 Council Mee�ing ; Annual Liquor License Renewals FROM: Chrissy Serres, City Clerk TO: Mayor and City Council City Manager Anne Norris Assistant City Manager/Human C� S U BJ ECT: Police Chief Revering May 29, 2014 Annual Liquor License Renewals Resources Manager Kim Therres Background Liquor licenses expire on June 30t" each year. The attached Apptications for City License list includes liquor license renewal applications received for the licensing period of July l, 2014 — June 30, 2015. Liquor License Renewal Process As part of the liquor license renewal process, all applications have been reviewed and the following information has been verified for each licensee, as applicable: ■ Criminat History Investigations The Police Department conducted the required criminal history investigations pursuant to City Code Section 1200. Police Chief Revering finds no reason to prohibit issuance of the liquor licenses. ■ Health Regutations On sale liquor establishments serving food products are subject to a health and sanitation inspection to ensure compliance with the Minnesota Food Code (Minnesota Rules 4626) as well as other applicable codes. All such businesses provided the city a copy of its current Hennepin County food license certificate. ■ Financiat Obligations All properties on the attached App(ications for City License list have demonstrated financial responsibility with respect to utility bills, property taxes, etc. In addition, licensees have submitted proof of liquor liability insurance for the new license period. An affidavit was provided in place of a certificate of liability insurance from off sale 3.2% malt liquor licensees whose sales were less than $50,000 during the past license year. .. , � ... ., ..l. _ � , ..l. ■ ..... Additional Business ticense Requirements All businesses have submitted acceptable documentation with regard to compliance with the workers' compensation insurance coverage requirements. All Minnesota tax ID numbers were verified with the MN Department of Revenue. Requested Council Action Recommend approval of the liquor license renewals as submitted on the Applications for City License list dated June 3, 2014. CONSENT AGENDA #1 APPLI�CATI�ONS FOR CITY LICENSE June 3, 2014 CARNIVAL Mad Jax Amusements Inc dba Midwest Rides & Concessions l 8l 40 Zane St #441 Elk River, MN 55330 (Crystal Frolics July 24-27, 2014) GASINSTALLER '7 Metro Heating and Air Conditioning 609 150th Ave NE Ham Lake, MN 55304 DLR 24 Hour Mechanical dba Dave's Heating Air Conditioning 20865 Wintergreen St NW Cedar, MN 55011 LIQUOR — EXTENSION TO OUTDOOR VFW Post #494 5222 56th Ave N Crystal, MN 55429 LIQUOR - OFF SALE An Thi Nguyen dba Liquor Barre12728 Douglas Dr N Crystal, MN 55422 Best Buy Beverage dba MGM Liquor Warehouse 6200 56th Ave N Crystal, MN 55429 Chalet Liquors, Tnc. dba Chalet Liquors 5109 36th Ave N Crystal, MN 55422 D& S Liquor dba Liquor Barrel Wine & Spirits 5628 West Broadway Crystal, MN 55428 Liquor Liquidator 3 Inc 5120 56th Ave N� Crysta], MN 55429 M D Liquors LLC 7200 56th Ave N Crystal, MN 55428 Sandrich Inc dba Bottle Stop 3530 Douglas Dr N� Crystal, MN 55422 Schwapper Inc dba Adair Liquor 6001 42"d Ave N Crystal, MN 55422 Tremolo LLC dba Crystal Wine & Spirits 4920 West Broadway Crysta], MN 55429 LIQUOR — OFF SALE 3.2 MALT Hometown Market Corp dba Hometown Market Corp 4711 36th Ave N Crystal, MN 55422 Northern Tier Retail LLC dba SuperAmerica 5359 West Broadway Crystal, 1VIN 55428 Northern Tier Retail LLC dba SuperAmerica 7818 36th Ave N Crystal, MN 55427 SuperValu, Inc. dba Cub Foods 5301 36�h Ave N Crystal,lVlN 55422 LIQUOR - ON SALE Blazin Wings Inc dba Buffalo Wild Wings #69 5590 West Broadway Crystal, MN 55428 Chipotle Mexican Grill #764 5608 West Broadway Crystal, MN 55428 Doyle's Bowling & Lounge 5000 West Broadway Crystal, MN 55429 E] Pajaro Inc dba El Loro Mexican Restaurant 99 Willow Bend Crystal, MN 55428 Kneadin' Dough, Inc. dba Broadway Bar & Pizza Crystal 5632 West Broadway, Crystal 55428 Robeck I�ndustries dba Steve O's 4900 West Broadway Crystal, MN 55429 Rostamo's Inc 6014 Lakeland Ave N Crystal, MN 55428 Stino, Inc. dba Big Louie's Bar & Gri1] 5216 West Broadway Crystal, MN 55429 LIQUOR — ON SALE CLUB VFW Post #494 5222 56`h Ave n Crystal, MN 55429 LIQUOR —ON SALE DUAL WINE AND BEER Milton's Cafe LLC dba Milton's Cafe 3545 Douglas Dr N Crystal, MN 55422 Page 1 of 3 CONSENT AGENDA #1 LIQUOR - ON SALE SUNDAI' Blazin Wings Inc dba Buffalo Wild Wings #69 5590 West Broadway Crystal, MN 55428 Chipot]e Mexican Grill #764 5608 West Broadway Crystal, MN 55428 Doyle's Bowling & Lounge 5000 West Broadway Crystal, MN 55429 El Pajaro Inc dba El Loro Mexican Restaurant 99 Willow Bend Crystal, MN� 55428 Kneadin' Dough, Inc. dba Broadway Bar & Pizza Crysta15632 West Broadway, Crystal 55428 Milton's Cafe LLC dba 1Vlilton's Cafe 3545 Douglas Dr N� Crystal, MN 55422 Robeck Industries dba Steve O's 4900 West Broadway Crystal, MN 55429 Rostamo's Inc 6014 Lakeland Ave N Crystal, MN 55428 Stino, Inc. dba Big Louie's Bar & Grill 5216 West Broadway Crystal, MN 55429 VFW Post #494 5222 56�h Ave N Crystal, MN 55429 LIQUOR — ON SALE TEMP 1-4 DAYS Crystal Lions Ed Thonander @ Becker Park for Crystal Frolics 7/24/14 — 7/27/14 Crystal Lions Ed Thonander @ Welcome Park for Crystal Frolics 7/25/14 — 7/27/14 LIQUOR - TAVERN ON SALE 3.2 MALT Blazin Wings Inc dba Buffalo Wild Wings #69 5590 West Broadway Crystal, MN 55428 Chipot]e Mexican Grill #764 5608 West Broadway Crystal, MN� 55428 Doyle's Bowling & Lounge 5000 West Broadway Crystal, MN 55429 El Pajaro Inc dba El Loro Mexican Restaurant 99 Willow Bend Crystal, MN 55428 Kneadin' Dough, Inc. dba Broadway Bar & Pizza Crysta15632 West Broadway, Crysta155428 Robeck Industries dba Steve O's 4900 West Broadway Crystal, MN 55429 Rostamo's Inc 6014 Lakeland Ave N Crystal, MN 55428 Stino, Inc. dba Big Louie's Bar & Gri115216 West Broadway Crystal, MN 55429 PLUMBER Charles Conner Plumbing Inc 9349 Bass Creek Circle N Brooklyn Park, MN 55428 Crown Drain Cleaning Service 3232 90�h Ave NE Blaine, MN 55449 Galaxy Mechanical Inc 4920 173`d Ave NE Ham Lake, MN 55304 NRH Plumbing Inc 6460 153rd Lane NW Ramsey, MN 55303 Nybo Peterson Plumbing 6606 E 280th Street Webster, MN 55088 RENTAL — NEW 4361 Adair Ave N— Adam J�ones (Conditional) 4800 Jersey Ave N— Robert H Senden (Conditional) 3708 Xenia Ave N— RHA3 LLC c/o Havenbrook Homes LLC 4518 Yates Ave N— Stephen/Janet Olson (Conditional) 5900 56th Ave N� — Shoua Yang/Ma I-ler (Conditional) RENTAL — RENEWAL 3109 Aquila Ave N— Lowe11 Gomsrud c/o L Johanns 2709-2'7l 1 Hampshire Ave N— Lester R Olson (Conditional) 4254 Kentucky Ave N— Joseph Selton Jr (Conditional) 4608 Nevada Ave N— Seth/Twila Berge 5512 Nevada Ave N— Lori Ann Rooney-Bailey (Conditional) 5610 Perry Ave N— Thanasak Sueblinvong c/o Guardian Prop Mgmt 5717 Perry Ave N— Gonzalo/Sarah Davila (Conditional) 4227 Zane Ave N— MNSF 1VLinneapolis LLC c/o Latigo Leasing (Conditional) 4611 Zane Ave N— John Greenwood c/o ReMax Results 7013 4'7th Ave N� — JDA Group LLC (Conditional) Page 2 of 3 CONSENT AGENDA #1 5022 49�h Ave N� — MNSF Minneapolis LLC c/o Latigo Leasing (Conditional) 5214 53rd Ave N— Lewski Properties LLC (Conditional) 5708 57�h Ave N� — Jackie/Bruce Podtburg (Conditiona]) THERAPEUTIC MASSAGE THERAPIST Sonia Sydnor at Massage Lakes, 235 Willow Bend, Crystal, MN 55429 (pre-app�oved by Assistant City Manager/HR Manager Kiin TheNres on S/21/2014) Page 3 of 3 Payee Blue Cross Blue Shield of MN Golden Valley JWC I.MCIT Metropolitan Gauncil Enviran S PERA JRS - EFTPS G \Ten}a�iioa(s Pu}1CheeF.s e�ec $25,000 Meng � .. , � ...., ..l. _ � , ..f.. ■ ..... DATE: May 29, 2014 TO: Anne Norris; Gity Manager Gity of Grystai City Councii FROMi Charles Nansen, Finance Director RE Expenditures over $25,000 Description June Health Insurance Premiums April Water Costs Reimbursement far setttement of Erkenbrack matter June Waste Water Service Empioyee & city required contributions: pay date 5/23/2014 Social Security; Medicare, & Federai Tax WIH; pay date 5l09/2014 Amount $84,344.50 $120,947:68 $85,000:00 $109,932.72 $43,234:32 $49,624.75 $493,083.97 .. , � ... ., ..l. _ � , ..l. ■ .. CITY OF CRYSTA� RESOLUTION NO. 2014 - RESOLUTION ACCEPTING DONATION FROM MINNEAPOLIS ELKS LODGE #44 WHEREAS, Minnesota Statute § 465.03 requires that all gifts and donations of real or personal property be accepted only with the adoption of a resolution; and WHEREAS, said donations must be accepted by a resolution adopted by the City Council. NOW, THEREFORE, BE IT RESO�VED by the City Council of the City of Crystal to accept the following donation from Minneapolis Elks Lodge #44: Crystal Airport Open House $750.00 And BE IT FURTHER RESOLVED that the Crystal City Council sincerely thanks the Minneapolis Elks Lodge #44. Dated this 3rd day of June, 2014. : ATTEST: Chrissy Serres, City Clerk Jim Adams, Mayor 1 � \ : _ � 1_� :' CITY OF CRYSTA� RESOLUTION NO. 2014 - RESOLUTION ACCEPTING DONATION FROM WEST METRO FIRE-RESCUE DISTRICT FIRE RELIEF ASSOCIATION WHEREAS, Minnesota Statute § 465.03 requires that all gifts and donations of real or personal property be accepted only with the adoption of a resolution; and WHEREAS, said donations must be accepted by a resolution adopted by the City Council. NOW, THEREFORE, BE IT RESO�VED by the City Council of the City of Crystal to accept the following donation from West Metro Fire-Rescue District Fire Relief Association: Crystal Airport Open House $500.00 And BE IT FURTHER RESOLVED that the Crystal City Council sincerely thanks the West Metro Fire-Rescue District Fire Relief Association. Dated this 3rd day of June, 2014. ': ATTEST: Chrissy Serres, City Clerk Jim Adams, Mayor � � � : _ � � _: : '� CITY OF CRYSTA� RESOLUTION NO. 2014 - � � � • �• � • :•u ::_��. ► ► : :i� : _� �� '• . � WHEREAS, Minnesota Statute § 465.03 requires that all gifts and donations of real or personal property be accepted only with the adoption of a resolution; and WHEREAS, said donations must be accepted by a resolution adopted by the City Council. NOW, THEREFORE, BE IT RESO�VED by the City Council of the City of Crystal to accept the following donation from the Brooklyn Center American Legion Post 630: Crystal Airport Open House $300.00 And BE IT FURTHER RESOLVED that the Crystal City Council sincerely thanks the Brooklyn Center American �egion Post 630. Dated this 3rd day of June, 2014. : ATTEST: Chrissy Serres, City Clerk Jim Adams, Mayor 1� \ : _ � 1_� : •. cR�.sT�� FRac�cs��r��r��, �n�� r�. ��X ..�s a:.� Cryst.31, +I,A,V Ss4?8 March 4, 2014 City Council City of Crystal 4141 Douglas Drive Crystal, MN 55422 Dear City Council, The Crystal Frolics would like your assistance for our City celebration this year. It will be held July 24-27. We invite alt of you to attend. We plan to have fireworks on Friday and Saturday nights at 10:00 p.m. We need you to direct your staff for the closure of Bass Lake Road for the shoot at Becker Park. Also, we need the assistance of the Police and Fire Departments to insure a safe display. The rain date for Friday night will be an inclusion into Saturday night's display. There will be no rain date for Saturday night. Please have the city staff contact the county for the appropriate permits. There will not be a Frolics parade since we will be having 2 nights of fireworks. Thank you, in advance, for your cooperation and that of the city staff. Sincerely, �� c Lynn Haney, President Crystal Frolics Committee, Inc. www. c rysta I f ro I i cs . o rg 612-839-8538 April 10, 2014 1� \ : _ � 1_� : •. 4141 Douglas Drive North • Crystal, Minnesota 55422-1696 Tel: (763) 531-1000 • Fax: (763) 531-1188 • www.ci.crystal.mn.us Mr. Steven Groen Hennepin County Permits Office 1600 Prairie Drive Medina, MN 55340-5421 Subject: 2014 Crystal Frolics Fireworks Dear Steve, � On behalf of the Crystal Frolics Committee we submit this letter to act as a permit application for short term road closures of Hennepin County Roads in Crystal for two fireworks displays. The proposed fireworks "shoot" will be held in Becker Park and require the closure of County Road #10 (Bass Lake Road) between County Road #81 and Sherburne Avenue on Friday, July 25th and Saturday, July 26th and between 9:45p.m. and 10:45p.m. In case of rain, the Friday night fireworks will be an inclusion into Saturday night's display. There will be no rain date for Saturday's display. Bass Lake Road will be closed for the shortest time possible and will be signed as noted on the attached plan sheet. In the past we have submitted our permit application much closer to the date of the Frolic's events but due advance comments required of the Crystal Frolics Committee, we are asking for Hennepin County's attention and approval now. There will be no Frolics parade held in 2014. Should you have any questions regarding these closures or require any additional information/submittals, please let me know. Your assistance as always is much appreciated. CONSENT AGENDA #6 �1T1G�T��, r , ; �� f � �.. � �� Mick Cyert Project Manager Cc: Tom Mathison, Public Warks Directar Stephanie Fealy, Police Department Mike Meehan, Police Department Mark C'raulke, Street Department Gene Hackett, Recreation Department Chrissy Serres, City Clerk Lynn Haney, Crystal I'rolics, President I:/pubworkslprojects/2013/frol iclPermit 1� \ : _ � 1_� : •. Hennepin County Transportation Department -' Permits/GSOC Office Phone: 612.596.0339 1600 Prairie Drive FAX: 612.321.3410 Medina, MN 55340 www.hennepin.us April 18, 2014 Mr. Mick Cyert City of Crystal 4141 Douglas Drive North Crystal, MN 55422 Re: 2014 Crystal Frolics Fireworks Dear Mr. Cyert: This letter will serve as the permit for the City of Crystal to close CSAH 10 (Bass Lake Road) between CSAH 81 and Sherburne Avenue for the Crystal Frolics Fireworks on Friday, July 25, 2014 and on Saturday, July 26, 2014 from 9:45 p.m. to 10:45 p.m. Traffic signing and detour routes for this event shall be in accordance with the City's traffic control plans that were submitted with the permit request. The Crystal Police Department shall be responsible for all traffic control. Please contact me at (612) 596-0337 or steven.groen@hennepin.us if you have any questions. Sincerely, Steven J. 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F I �._.� .. � .� S..v '�—r...e � ��i�.a �. ...�—��..�... � . . . ... ` � � � y.e�t '� ._, 'S � '-h i aH,�..., t � � r . .� a.x v r% a ��....�-- .�--"" ' � � . ,_. . .. � �� ..�. . . , rK . f..,�.7 ; Y t ( � S 1KI"J: . }1 . . . . l � __� �__ rc i. __ � � ,� � tt; �E'f�99�2 = f � ��r��-a�,�ltz�.�fi� rr�lt��` k�G " ' ,�" �; a �:. t � L�.r� �E'�'�� -- ----- r _ -_ ___ _ . . . _ __ „ __._�_.�.__ �__ �. ; _- _- � _ __... _._ ._ ._.____3 � � � ' � r , � �`� � i � , � 1040` � , � �" �=' � � : � � t i .. , � ... ., ..l. _ � , ..l. ■ / May 2'7, 2014 City Council City of Crystal 4141 Douglas Drive Crystal, MN 55422 Dear City Council, As in previous years, the Crystal Frolics is planning to have live music on stage at Becker Park, July 24 thru July 27. We have signed contracts for the following music: the Bill Koncar Potka Band on Thursday night 6:00 p.m. - 9:00 p.m., Georgia Clay band on Friday night 7:00 p.m. - 11:30 p.m., Good for Gary on Saturday night 7:00 p.m. - 11:30 p.m. and Who Shot First? (a local Crystal band) on Sunday 1:30 p.m. - 4:30 p.m. We would like you to approve this schedule and invite you to enjoy the music with us. Thank you, in advance, for your cooperation. Sincerely, ` Lynn Haney, President Crystal Frolics Committee, Inc. � W c; �t�1f�c�lie� W c�� 612-839-8538 1 \ \ '. _ \ 1_'. : % MINNESOTA LAWFUL GAMBLING LG230 Application to Conduct Off-site Gambling Organization Information Organization name � r ys �'� ti� t--j ° N�� License number Address �� O �,� � a 8< 0� City t"7 S'`��-� MN County •f� c n ,� I Gambling manager name �� T� v:� �� d� P l Daytime phone Gambling Activity 1. Twelve off-site events are allowed each calendar year not to exceed a total of 36 days. from � 2�/ 3"�'�0 ��7/ �. v� y 2. Check the type of games that will be conducted. raffle �pull-tabs bingo tipboards paddlewheel Gambling Premises 5/13 Page 1 of 2 No Fee Lyl�,� Zip wde SS�'.Z� 3. Name of location where gambling activity will be conducted /S p�K'�.T I'�� 4. County [where gambling activity will be conducted �-� �� 5. Street address and city [or township] � a� S S�' �T � Zip code S5 y� P' • Do not use a post office box. • If no street address, write in road designations. Example: 3 miles east of Hwy 63 on County Road 42. 6. Does your organization own the gambling premises? Yes If yes, a lease is not required. � No If no, the lease agreement below must be completed, and signed by the lessor. Lease Agreement for Off-Slte ACtivity A lease agreement is not required for raffles. 7. Rent to be paid for the leased area �_ If none, write "0." 8. All obligations and agreements between the organization and the lessor are listed below or attached, • Any attachments must be dated and signed by both the lessor and lessee. • This lease and any attachments is the total and only agreement between the lessor and the organization conducting lawful gambling activities. • Other terms, if any 9. Lessor's signature _ Print lessor's name CONTINUE TO PAGE 2 Date _�___J ; i ' � '• • ' � r, • � . � •' CONSENT AGENDA #8 s/13 Page z of z Acknowledgment by Cocal Unit of overnment: Approval by esolution GITYAPPROVAL for a gambiing premises COUNTY APPROVAL for a gambling premises located within city limits. lacated in a township Cit name �� Count name y Y Date approved by city council Date approved by county board Resolutiort number (if none, provide meeting minutes) Resolution tlumber (if none, provide meeting minutes) Signature of city personnel Signature of county personnel Title Date 5igned Title Date Signed - Chief Executive Officer [CEO] Acknowledgment 10. The person signing this appiication must be your organization's CEO and have their name on file with the Gambling Control Board. If the CEO has changed and the current CEO has not filed a LG200B Organization Officers Affidavit with the Gambiing Control Board, he or she must do so at this time. 11, I have read this application, and all information is true, accurate, and compiete, and if applicable, agree to the lease terms as stat i pplication. .�- - CEO signature A Date �� 12. Print CEO nam � 6,��"��„�� ;� �'� Daytime phone 1t�� L�� "" :'�"� � Mail or fax ta: No attachments requr'red. Gambling Control Board 1711 West County Road B, Suite 300 South Roseville, MN 55113 FAX: 651-639-4032 This publication will be made available in alternative format (i.e. large print, Braille) upon request. Data privacy notice: The information requested on this form provided wili become public. If the Board does not issue a (and any attachments) will be used by the Gambling Control permit, all information provided remains private, with the Board (Board} to determine your organization's qualifications exception of your organization's name and address which will to be involved in lawful gambling activities in Minnesota. Your remain public. organization has the right to refuse to supply the information; Private data about your organization are available to: however, if your organization refuses to supply this information; Board members, Board staff whose work requires access to the the Board may not be able to determine your organization's information; Minnesota's Department of Public Safety; Attorney qualifications and, as a consequence, may refuse to issue a General; Commissioners of Administration, Minnesota Manage- permit. If your organization supplies the information requested; ment & Budget, and Revenue; Legislative Auditor, national and the Board will be able to process your organization's application. international gambling regulatory agencies; anyone pursuant to court order; other individuals and agencies specifically Your organization's name and address will be public information authorized by state or federal law to have access to the when received by the Board, All other information provided will information; individuals and agencies for which law or legal be private data about your organization until the Board issues order authorizes a new use or sharing of information after this the permit. When the Board issues the permit, all information notice was given; and anyone with your written consent. 1 \ \ '. _ \ 1_'. : % RESOLUTION NO. 2014 - CITY OF CRYSTAL RESOLUTION RELATING TO LAWFUL GAMBLING: APPROVING LAWFUL GAMBLING AT BECKER PARK 6225 — 56TH AVE N July 24 - 27, 2014 BE IT RESOLVED BY THE CITY COUNCIL OF CRYSTAL AS FOLLOWS: WHEREAS, Minnesota Statutes Chapter 349, as amended by laws 1990, chapter 590, provides that organizations licensed by the Charitable Gambling Control Board (Board) must also obtain from the Board a premise permit for the conduct of lawful gambling at a specific location. The Statute also provides that the premise permit will not be issued by the Board unless the organization submits a resolution of the City Council approving the premise permit; and WHEREAS, the Crystal Lions has submitted an application for an off-site gambling event to be held at Becker Park, 6225 — 56th Ave N, in Crystal Minnesota for July 24, 25, 26, and 27, 2014. NOW, THEREFORE, BE IT RESOLVED that the Crystal City Council hereby approves such premise permit; AND FURTHER, that the city clerk is authorized and directed to supply a certified copy of this resolution to the applicant listed above. Adopted by the Crystal City Council this 3`d day of June, 2014. Jim Adams, Mayor ATTEST: Chrissy Serres, City Clerk Minnesota Department of Public Safety CONSENT AGENDA #9 Alcohol and Gambling Enforcement Division ` �■I� 444 Cedar Street, Suite 222, St. Paui, MN 55101 651-201-7500 Fax 651-297-5259 TfY 651-282-6555 APPLICATION AND PERMIT FOR A 1 DAY Alcohoi & Gamhling Eniorcement TO 4 DAY TEMPORARY ON-SALE LIQUOR LICENSE �ommu.ni�y��li►ral- C+�y�+�.l�lics Name of organization Date organized Tax exempt number c� � �� r � � �► s �t"u,L i on s ( � y `�� ----" Address City State Zip Code �, b �n � � S,� �� r . � Minnesota 5 S�� Name of person making application Business phone Home phone —� � �� n. ��¢ _ _ _ Date(s) of event Type of organization �a � `� —��J ;� C f �� —�, Q �Club �Charitable � Religious � Other non-profit �� Organization officer's n me City X I �f� i ��n�-a Add New Officer State Zip Minnesota �� Location where permit will be used. If an ojutdoor area, d)escribe., 1� fC C Kr % l;-&.Lfl�'r"� � G. 1' 1'(' � %a cL t k'I �1 �� (p�25' 51��,�-v� 1� ► �, ��f ��l -1.q � If the applicant will contract for intoxicating liquor service give the name and address of the liquor license providing the service. �% o r � �'✓i s'� ��'�j � �c�� , A��..� � � 2, ay �.r 3 9''I,n SS 3`9 '�{ ^- � ! � � If the a�plic�'ant will carry liquor liability insurance please provide the carrier's name and amount of coverage. G(`�Cc ^l� � m c!' f C G i, �f ,� i �� f 6 � O�'6 � pu✓ �� :� �� t� r�n ec, r .�/ ��, •� t c la ��, rL�� • APPROVAL APP ICATION MUST BE APPROVED BY CITY OR COUNTY BEFORE SUBMITTING TO ALCOHOL AND GAMBLING ENFORCEMENT City/County Date Approved 5V' DO City Fee Amount Permit Uate � � Date Fee Paid Signature City Clerk or County Official Approved Director Alcohol and Gambling Enforcement NOTE: Submit this form to the cily or county 30 days prior to event. Forward application signed by city andlor county to the address above. If the application is approved tlie Alcohol and Gamhling Enforcement Division will return this application to be used as the permit for the event. Page 1 of 1 / `�' � MINNESOTA DEPARTMENT OF PUBLIC SAFETY � � � I Name of orqanization Minnesota Department of Public Safety CONSENT AGENDA #10 Alcohol and Gambling Enforcement Division 444 Cedar Street, Suite 222, St. Paul, MN 55101 651-201-7500 Fax 651-297-5259 TfY 651-282-6555 APPLICATION AND PERMIT FOR A 1 DAY TO 4 DAY TEMPORARY ON-SALE LIQUOR LICENSE �ommuni� �Ii ►�Q,Q � Cr�,��a.! �'-ro � � cs ' d T t mber Address `�' {' � P�.� a�1�C Name of person makinq application Date(s) of event � +- ) �° ;2 5-a G -,Y� � L / �% '�. �,2�� Organization officer's name X �� ''r�pn tin��'�� Add New Officer Date organize ax exemp nu � �� City State Zip Code f �7,�.��,i � Minnesota �� L%2y Business phone Home phone � �— Type of organization [�Club [�Charitable � Religious � Other non-profit City State Zip � P7 s�� Minnesota _45�� Location where permit will be used. If an outdoor area, describe. 11, ,� ti,.. t I� d m.� ,/4�' �` w d 1 � s� ,� �'�r. � � `' �' ' ,�(,G�Y►'1�,��, �,J"�� li-ol� �No30 l�1 If the applicant will contract for intoxicating liquor service give the name and address of the liquor license providing the service. t� r� r r�6 D 1 S��'i1'bu+�n9 �,Ua ��c� s, n,�:,�6„� �� 6�� a e,rs r�r�r ��3')`/ .��ti If the appl�ant will carry liquor liability insurance please provide the carrier's name and amount of coverage. �r /` � z'� � rn e r r� �„ ,� ,� S Lr n S � t, . � �pe:;Et c "r4�1. D�t �re.n r•c- �� , �"� �d`��`�'R�`' APPROVAL APPLICATIO ST BE APPROVED BY CITY OR COUNTY BEFORE SUBMITTING TO ALCOHOL AND GAMBLING ENFORCEMENT ity o n Date Approved 5�� o�o Cityr ree Amount Permit Date 5�g �DI ate Fee Paid Signature City Clerk or County Official Approved Director Alcohol and Gambling Enforcement NOTE: Submit this form to the city or county 30 days prior to event. Forward application signed by city and/or county to the address above. If the application is approved tlie Alcohol and Gambling Enforcement Division will return this application to be used as the permit for tlie event. Page 1 of 1 PUBLIC HEARING #1 COUNCIL STAFF REPORT -�"'�f public Hearing: :CRYSTAL New off sale liquor license located at 5924 West Broadway for � �—�-- Red Dragon Liquors FROM: Chrissy Serres, City Clerk DATE: May 29, 2014 TO: Mayor and City Council City Manager Anne Norris Assistant City Manager/HR Manager Kim Therres CC: Police Chief Stephanie Revering City Attorney RE: Application for a new off sale liquor license located at 5924 West Broadway, submitted by Kai's Liquor of Brooklyn Park Inc. d/b/a Red Dragon Liquors I. Overview Mr. Kai Frobenius has made application for a new off sale liquor license located at 5924 West Broadway as Kai's Liquor of Brooklyn Park Inc. d/b/a Red Dragon Liquors. Mr. Frobenius assumed management of the business on or about April 13, 2014 and is in the process of purchasing the business from the current owner, Robert Enterprises, Inc. (Mr. Santokh Singh), pending license approval from the City of Crystal and Minnesota Alcohol and Gambling Enforcement Division. II. Findings of Fact 1. Application Review A. The qualifications of the applicant meet City Code Section 1200 and city staff received the following documents: ■ City and state license applications Articles of Incorporation Agreements a. Management Agreement b. Commercial Lease Agreement (pending license approval) c. Agreement for the Purchase and Sale of Assets (pending license approval) Certificate of insurance with liquor liability B. A background investigation was completed by Crystal Police Department. Police Chief Revering finds no disqualifying criminal history to prohibit issuance of the license. Page 1 of 2 PUBLIC HEARING #1 C. The subject property is current on its property taxes and utility payments. D. A final Certificate of Occupancy inspection was conducted by Crystal's Building Official and West Metro Fire-Rescue District's Deputy Fire Marshal. At the time of the inspection, the inspectors found no violations and did not require any special conditions prior to the change in occupancy. E. Mr. Frobenius was given a copy of Crystal City Code Chapter Vll. SALE, CONSUPMTION AND DISPLAY OF L/QUOR AND BEER, which includes city licensing conditions and the Council's policy regarding civil fines and penalties for violation of ordinances/laws. The hearing notice was published in the Crystal/Robbinsdale Sun Post on May 22, 2014 and mailed to all property owners within a 500 foot radius. G. The following exhibits are attached: A. City application (private data has been redacted) B. Hearing notice C. A map identifying the properties within 500 feet of the subject property Requested Council Action Recommend approval of the off sale liquor license for 5924 West Broadway submitted by Kai Frobenius of Kai's Liquor of Brooklyn Park Inc. d/b/a Red Dragon Liquors, subject to the findings of fact in section II of this report. Upon request, application documents are availab(e for review in fhe city clerk's office. Page2of2 ��r� ��_�r: �,�c��c�rz ��,��.f��l��c��Z��i��, '' csrv or� Cityoi'Crystal CI�YSTAL 4141 Dou�las Drive N, Crystal, IViN 55422 7'elephone: (?63 ) 53 l -1000 / Facsimile : (763 ) _5 31-1188 www. crystalmn. �ov For`ITY communication, contacttlie Minnesota Relay Seivice at 71 l If the ul��licarrt is rrrr irrrlivirh�r�l, this rlj�plicr�tion skalt l�e con�pleted by� sucit pensoft; if n cn►•I�of'll11011� Gy mr officer; r'f u pur�tners/iip, by orre of t/�e ger�er�itpurtrrers; if u�� eerriircorpor•uted associatia�z, Gy t/te rtranuger or ma+raging offtcer. i . 'I'�'9'T OI� Al'I'�fiCAN'➢, Individual_I� rt i " c�� t ✓ 1�L� —i._ � Business Organizatioi� � �„ PI.EASE PRI��T C'I,EARI.Y I.,icensee's le�al natne (individual, partnerslup, corporat�n, or License I�ee:* (O 100-41C,5) $ (� �- . ot'geniaation); I�,('�, t�n�:st��tionl�ce:* C> �>�-� KC � I � S� i[��{ ��.? O� �:�L: �L ct'_ K-�� f Z<��7.:uv�i�15 i0100-4605) („ctuJu,� v�vesi��tion fcc) Address Home Plione: ( — --_. C it�/StateJZ,� Cell Phone: I?nkvl Address: _ - 3. �. Business Name: �C� j 'j DoingIIusiness As: (Z�Qc3 C�-yst�il Business Acld��ess, �e�sitE Address: �,,t a � c� J '/_.ip Code: Tiusiness Phonc: (%�C�?�) ��;3��'"��'�'j,' �r'li_�K�fr�l Mif�'ll �"Yu�`' Fax Phone: ( ) MN "I'ax ID #: � 5� �� 7ic•r I Federal"I'ax ID #: j_ NO"I7?: vou nwst tr�idc �i co v of tt�c coiilim�tiuu tettec frv�n� tlu Shite ) 7�� U�� --- -1— — ---I'- P If a A4i►ulesota Tax ID numbcr is not �rquimd, plcuse ezj�lain hem und p�uF•idc }�oursocial secutily numlmr, I tacrc�y i7�kc aUplic�a� ion to . I'GRA' 'L; AS AN Ol+l� SALL' LIQLJOR LS'TABl_.ISHM�N"I' ai flte above bt�siness address for ihc period _ -Iv1 • ��1,��4�'" �u"ou�ti Jtme 30, 20_j�, subject to all cm�ditions anci provisiottis orsaiti Orclu�ance. -�--- �� 2C� I �-}' I enclose the sumof'_�� l�'L�'1(.CY') c�I1c_i�c� -_�11 t�� b') � L• __ and U_/100 dollars to the City o fCrystal as required by the Ordinances`bi�said C iry and have coir�licd «lYtll allt�e requireit�eiits ofsaid Oi•dir�ances riecessary [or obt��ining this License. *Fee: I�iitial Liceuse I�ee = $380; [nvestigation l�ee of$�00/if'MN resident Inr� 10-F years or $l,tlOQ/iI'1v1N resictent less tliau 10 yeai•s * If exeml�t, fi11 or�t Licef�isi»� I ee Fxerr�ptio�� Forrn �<<�,�� /�;%) C ity USe Only: JDEH I I-��.n� '�" �_" 1 V'l ��` Daec Entered: �1 t�,`� ,�� -- P1MS ID# ___ __ Caw�crLDate: �� _ Pa�c I of�t EXHIBIT A (�ity of Caysial i)ff �zle Liq►�o��°� ;. INDIVIDi1AL I�appliccrble, please conrplete thrs c�ueslion if irt�orntatioir is di%Jerertt that� proi�rtlec! o��e pa��e 1, thert p�'oceer! to Sectior7 ?. IJ'npplicar�t does ��ol irrni�nge tl7e be�si��ess, a Personul Ffis•tory jo�irT r.r reqzrired %r�om encla person rr� c.l�ar�,Te q/'the busz�7e,ss. Full Nai1�e: � Rcsiclence Addi C ity/State%%ip : 13usiness Addre C iLy/SC1te%1 ip : Home Phone� ' � Cell Pl�one: Phone: ( ) ADDI'CJQNr�L REQiJIR�MENTS Y+OR INDIVIDUAL a. Attach a copy oftlic kase as,�eetl�ent, ifapplicant doesn't o«�i tYie b��su�ess preroises. b. ACtael� a copy ofthe Certifcate ofAsstuneci Nair�c as requn•ed �yMinncsota Stattne, Secti�n 333.02, i_i'btur�iess is to be condt�cted tu�der a designation, naiix: or style ottier than the na►i�c ofihe applrcarit. c. Attach copies o fapplica�at's personal iuiancial statciix;nt and iecieral and state ta�: retw'►�s f�r tiie rit�o years prior to application. G. TiI1SINIi,SS ORGANl"I.�AT(ON Please c.ontptete puestioi� 6. Miniiesota coiporatio�l: Out-ot=state corporation: Date oCiricaporation: � Yes ❑ No '� v � Z State ofincorpor�tion: ❑ Yes � No I fia. OI�I�If'��iS n�9� CORYORA"CION, I�I,C, Ld�l',1�"1'C./O"1'Hl:R OIZGANI%A"1'ION: I'leas•e ca�rplete lhis qi�estiort Jor adl persoi�s �i�hn corrtr•ol o�� oiri� cria i��te��est ir� saiil co�/aoi•alioiz, I,1 C, I.I,P, etc.-°or ntl��er• n�•ganizntior� i�� e,rces,s oJ'�%, lher� proceec( to ,Section 3. Attnc{r a Ii,st of nin��ers, ofJice��c n��cl-a� �eneral a��d lir��itecl par•trrers anc� lheir re.specti��e perce»la,e.s iotaling 100�5. _=1 Pelsor�al Histo�;y forn� zs re��c�zred %ront eacla oier�et•, o1/'tcel� arrcGz�r �,Je��eral nn�l lin�ited pariner. �l Pe�sor�nl Hista�y I �rni ts ��ot a�plicable tn a co�/�oratiou icho.ce stocA rs publicrrlly h•aded on �� .stock �rclactn�e nr�d rs a/�plyii7g /�or n licen,se to />e c»r�aed and ope�'rrted by it. Hoive�•er, !!re ci(�, m«nnger s/rnll nccept clfsr.ln.ci�re docurrreri[s reqttrrecl Uv the L'.S. Sec¢n'ities ar�d L.�claa»ge Connrirs.sion zrr 1i.e« n/'suc.l� ii�%�•rnatia��. Full N�rne :_r �, �-� �1i alti` 'T-/�� I� ��. i7 i "I`ille oPPosition: Ov,�,'v�. �/Op�� r'« f �'!= Residence Address: C. ity/S l��te%l.,ip : Full N an-�e : Title ol Position Residence Address: C itv/State%Lip : Full Name: "Citle ofPosition: Residence Address: C i�v/St�zte/%,in: Peroentage o«�r�ed Home Phone: ( Ccll Plione: l Business Phone: ( Percentage owned Home Phone: ( ) Cell Phone: ( ) Business Phone: ( _ _ __ ------ - - Percenta e o�vne Hoine Phone: ( Cell Phone: ( 13usincss Phone: i ) ) FullNa�tic: Perceiit�l owned �'itle ofPosition: Home Pl�ot�e: ( ) Residence Address: Cell Phonc: ( ) Ciiy/St�1te%Lip: __ Business Phone: ( J C,yf C� `% I I ) �I % � -- % ) % ) Pnge 2 ofd EXHIBIT A ['at� of C'e�stal �ff Sale IL�t�i�o � ' ��t��t�'��11� .�ll a��J�licants complete thi,s scctron Gl'ziVLRAI_,1�ANAGI�,it,1'ItO�'RI%,'1'(.ild, iV1A1VA(rING 1'AIZ'1'NF;13 OR A,N`�'O"I'II1�I8 I1o1D1�'IDiIAi., OR A(al�iV'I' IN CI�AR(aL Oi� 'I'I-Ig�', LICI�.NS�,D 1'12Y;MISI�.S: Ald�:�'OLI'I'I-1�? MANAG%fIa Or"1'i-IIS I3USiNT,SS? �Yes ❑ No Ij�«p/�Ircnnt cloes �aot ma�ingc lhe bcr.�b�ess, n Ye�'soncil I-�islo�yio�i�� is required.iront each pe�.so�� zn c/7a�ge n/'tl�e btrsiness, except irt tl�e c:�rse a coiPoratior� wlio.se .ctocic is perblicn!!v U•aded on a stoch excl�ar��>e a�7d is ap��li�ing for a/ice��se to be nirnec! ni��l nfu:rnled />v ic. -- _--.. . FUIIN1111E: �C�/ ��V 1. Position: / )�,��t�a° / C� Full N�me: Position: 8. Do you hold a business license i'rom �ny other governnx;ntal wlit? If'yes, please list il�e type of license(s) and �uith �,�•luch governrnental w�it. Phonc Phone : � Yes �, No 9. Have you m�de application for �i busiix;ss licensc, Irom 1ny oiher governmental unit �vhich «<as denied; revoked, or susE�euc{ed`? I t'yes, please st�ce the circumstances including date, location, re�son. ete. ! � U ---- -- ------ 10. Have all real est�te and perso►�nl properry taxes ihai are due and payable ior tl�e pi�emises to be licensed been paici? �Yes t� No; ii'not paid, the years and amowus that are unpaid : APPT�ICA'TION F012 LICi;NSl, INVOLVI�G PI2IVA'CL OR CONI'IDFNTIAL INrORAtATION (I�7clxdes 9l�ruresse:rr lP�7ririrt�) iJudcr Mnuiesotta Itrn� (M.S. 270.72), thc apcnc�� issuin�you iliis lu;ense is required to provi�e to Uie Minncsot[� Com�niSsx>ncr ofl2cvenuc )'otu Minnesota business tn� ideniillc;atiou m.ui�l�er or the Socvil Securit}� niui�l>er ofeadi lic�nse npplicant. iJnJer the Minnesota (Savenulx;ni. natri Practices Act aud ilie 1'cdcrll Privficy Act o.f 1974, �t.e miut ad�'ise you thal: . '1'Itis .iiitornntion ma�' be used tci den}� tUe issusiicc, rene«al or irm�sfer oi yo�u• license ifyou o�ve ihe Minnesota Depnrtment nf' Re��enue dclinqtu:nt [�tics, penaltxs, or uiterest e 'Ctx. lic;ensing agene�� vill supph this iiifc�nn�ition oii15� to the Minnesott� Dep�rtme:nt ofRc�•cntu:. E Io�4�ever, imder the I�cderal I;�cl�angc ofInforumticui l�ct, dic Dcpartmc;nt ofRc� enue is �llo��ea to sLipplv thiti iniom�lir>n to the Tntcrnnl 12e�'crnte 5er��icr:; e Failure to supph• this inf:onnatxxi nn}' jeopard'rrs or del��y the itisi�ance ofyoi�r lic;ensc or tl�� processn�g ofyour rcne�vul nprlic�tinn. I rlc>clr�re tl��rF �hc> ir�'<>r'ntntroti Il�rn�e ��ro;•i<lc�l ort 'liis �i�>��lie�� iv�� is ti•r�'h'iil �urr! I�mrlers`aircl thii`,'ril.si'icrrric�l� o��rntstrc�`s v� tliis ��p��Ir��'io�r,rrN rc�swlt in �lc>��i��l o'��lx� ��1>lic��io�i. ._ ..__...._:__� ��/ s�` � �. . __... _ -�..�_�. .., w - �....--� C-�-��-I _ ,_....... ._. __ / Sl�llf'�7lTeof.-lpl�lic�rnt I)�rtc / � P��,� ? �,r�� EXHIBIT A City of Crystal Off Sale Liquo�;,�,��e �p��jet}��orm Puusuant to lt�iinnesota Staiutes Section 176.182, proaf of Rto�e�s' �a_.,_1m ensatian Liabili is requi�ed: �s, . � , , l, _ A ,, :� �'�tT �.� �� eo��:E��: Polic�r Nwnber� Dates. ofGnverage � CIR a not �qumed to have vuorkers' compensation lia.bitity caverage because. �che.ck ox�e):. f have ua empb3yees 0- � lra�ve only vohanteers 0 I am setf-�saced (i�hule permit ta self-�suceJ I have no. empinyees v�rha are-coucred b}r 13�e ruorkers' com�ensation law (these inchide � spause, parents, ch�7dren, and certain fann employ�s}: I certifjr ii�at the roformation. provided above is accurate and complete to the best of my lainwledge and. that a vatidwo�rs' campens'ation pbtrcy wil1 be kept im effect atall tunes as �qnn�d by law � O � �, �1� N� Q�l�p�}�l£3tlt � �' Page A of4 EXHIBIT A PUBLIC HEARING #1 4141 Uougl�s Drivc North • Ccystal, Minncsota 55422-1696 CCTY of Te�; (763� 531-1000 • I�ax: (763) 531-I 188 • WVV\V•CI.CI'y"St�I.I]111,1IS CKYSTAL CITY OF CRYSTAL NOTICE OF PUBLIC HEARING TO CONSIDER AN OFF-SALE LIQUOR LICENSE AT 5924 WEST BROADWAY Notice is hereby given that the Crystal City Council will hold a public hearing at 7:00 p.m. on Tuesday, June 3, 2014 in the Council Chambers located at 4141 Douglas Drive N., to consider an off-sale liquor license at 5924 West Broadway submitted by Kai's Liquor of Brooklyn Park, Inc. d.b.a. Red Dragon Liquor. Anyone wishing to express a view either in person or in writing will be heard at the public hearing. Auxiliary aids are available for public meetings 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. a, l• -�...g. 1 , /' ; / � i ' City C er� � hrissy Serres EXHIBIT B RE(iULAR A(iE�DA � 1 � 1 1 . .\... ....! \ .•.. _ . .!. ■ ..... �r�� Memorandum ��. DATE: May 28, 2014 TO: Mayor and City Council Anne Norris, City Manager FROM: Charles Hansen, Finance Director SUBJECT: 2013 Comprehensive Annual Financial Report Presented by Kern, DeWenter, Viere, Ltd. The firm of Kern, DeWenter, Viere, Ltd. (KDV) has audited the City's financial statements for the 2013 calendar year. Mr. Andrew Grice from KDV will be at the June 3rd council meeting to present highlights of the enclosed reports for the year 2013: • Comprehensive Annual Financial Report • Communications Letter • Report on Legal Compliance. I also want express my appreciation for Beth Simonsen, Assistant Finance Director for her accounting expertise and the extensive work she did in audit preparation and writing the annual financial report. At the end of the presentation, it is recommended that the City Council formally approve the 2013 reports. COMPREHENSIVE ANNUAL FINANCIAL REPORT City of Crystal, Minnesota For the Year Ended December 31, 2013 COMPREHENSIVE ANNUAL FINANCIAL REPORT City of Crystal, Minnesota For the Year Ended December 31, 2013 Prepared by City of Crystal Finance Department Charles Hansen, Finance Director Beth Simonsen, Assistant Finance Director City of Crystal TABLE OF CONTENTS INTRODUCTORY SECTION Letter of Transmittal City Officials Organization Chart Certificate of Achievement FINANCIAL SECTION Independent Auditor's Report Management's Discussion and Analysis (Unaudited) Basic Financial Statements: Government-wide Financial Statements - Statement of Net Position Statement of Activities Fund Financial Statements - Balance Sheet - Governmental Funds Reconciliation of the Balance Sheet of Governmental Funds to the Statement of Net Position Statement of Revenues, Expenditures and Changes In Fund Balances - Governmental Funds Reconciliation of the Statement of Revenues, Expenditures and Changes In Fund Balances of Governmental Funds to the Statement of Activities Statement of Revenues, Expenditures and Changes In Fund Balances - Budget and Actual: General Fund EDA - Special Revenue Statement of Fund Net Position - Proprietary Funds Statement of Revenues, Expenses and Changes In Fund Net Position - Proprietary Funds Statement of Cash Flows - Proprietary Funds Page 1 of 3 Page Number 5-9 10 11 12 13-14 15-28 29 30 32-33 34 36-37 38 40-41 42 44-45 46-47 48-49 City of Crystal TABLE OF CONTENTS (Continued) FINANCIAL SECTION (Continued) Basic Financial Statements (Continued): Fund Financial Statements (Continued) - Statement of Fiduciary Net Position - Fiduciary Funds Notes to the Financial Statements Required Supplementary Information - Schedule of Funding Progress Combining and Individual Fund Financial Statements and Schedules - Combining Balance Sheet - Nonmajor Governmental Funds Combining Statement of Revenues, Expenditures and Changes In Fund Balances - Nonmajor Governmental Funds Schedule of Revenues, Expenditures and Changes In Fund Balances - Budget and Actual: TIF Districts - Special Revenue CDBG - Special Revenue Special Projects - Special Revenue Police Equipment Revolving - Capital Projects Fire Equipment Revolving - Capital Projects Street Maintenance - Capital Projects Debt Service Capital Improvement Revolving - Captial Projects Street Reconstruction - Capital Projects Major Building Replacement - Capital Projects Combining Statement of Net Position - Internal Service Funds Combining Statement of Revenues, Expenses and Changes In Fund Net Position - Internal Service Funds Combining Statement of Cash Flows - Internal Service Funds Page 2 of 3 Page Number 50 51-86 87 90-91 92-93 94 95 96 97 98 99 100 101 102 103 106 107 108 Statement of Changes In Assets and Liabilities - Agency Fund 110 City of Crystal TABLE OF CONTENTS (Continued) STATISTICAL SECTION Table 1- Net Position By Component Table 2- Changes In Net Position Table 3- Fund Balances Of Governmental Funds Table 4- Changes In Fund Balances Of Governmental Funds Table 5- Taxable and Estimated Market Values of Taxable Property Table 6- Property Tax Rates - Direct and Overlapping Governments Table 7- Principal Property Taxpayers Table 8- Property Tax Levies and Collections Table 9- Legal Debt Margin Information Table 10 - Ratios Of Outstanding Debt By Type Table 11 - Ratios Of General Bonded Debt Outstanding Table 12 - Direct and Overlapping Governmental Activities Debt Table 13 - Demographic and Economic Statistics Table 14 - Principal Employers Table 15 - Full-time City Government Employees By Function Table 16 - Operating Indicators By Function Table 17 - Capital Asset Statistics By Function Page 3 of 3 Page Number 113 114-115 116 117 118 119 120 121 122 123 124 125 126 127 128 129 130 INTRODUCTORY SECTION May 23, 2014 4141 Douglas Drive North � Crys�al, Minilesota 55422-1696 Tel: (763) 531-1000 � FaY: (763) 531-1188 � www.ci.crystal.miz.us Ta the Gity Gouncil and Citizens of the City of Crystal The Comprehensive Annual Financiai Report af the City of Crystal, Minnesota, for the fiscal year ended December 31, 2013, is hereby submitted. The repart was prepared in accardance with U.S. generally accepted accounting principles (GAAP) and audited in accordance with U.S. generally accepted auditing standards. The report meets the requirements of the Office of the State Auditor and the City of Crystal Charter. This report consists of management's representations concerning the finances of the Gity. Gon�equently, management assumes full responsibility for the completeness and reliability of all of the information presented in this report. To provide a reasonable basis for making these representations, management of the City has established a comprehensive internal control framework that is designed both to pratect the gavernment's assets from loss, theft, or misuse, and ta compile sufficient reliable infarmatic�n for the preparation of the City's financial statements in conformity with GAP�P. Because the cost of internal controls should not outweigh their benefits, the City's internal controls have been designed to provide reasonable, rather than absolute, assuranee that the financial statements will be free from material misstatement. As management, we assert that, to the best of our knawledge and belief, this finaneial report is complete and reliable in all material respects. The City's financial statements have been audited by Kern, DeWenter, Viere, Ltd., a firm af licensed certified public accountants. The goal of the independent audit was to provide reasonable assurance that the financial statements of the City for the fiscal year ended December 31, 2013, are free of material misstatement. The independent audit invalved examining, on a test basis, evidence supporting the amaunts and disclosures in the financial statements; assessing the accounting principles used and significant estimates made by management; and evaluating the overall financial statement presentation. The independent auditor conctuded, based upon the audit, that there was a reasonable basis for rendering an unmodified opinion that the City's financial statements for the fiscal year ended December 31, 2013, are fairly presented in conformity with GAAP. The independent auditor's report is presented as the first component of the Financial Section of this report. 0 GAAP requires that management provide a narrative introduction, overview, and analysis to accompany the basic financial statements in the form of Management's Discussion and Analysis (MD&A). This letter of transmittal is designed to complement MD&A and should be read in conjunction with it. The City's MD&A can be found immediately following the report of the independent auditors. Profile of Government The City, incorporated in 1960, is a northwestern suburb of the Minneapolis/St. Paul metropolitan area, lying adjacent to the City of Minneapolis. The City lies wholly within Hennepin County and encompasses an area of 5.8 square miles and serves a population of approximately 22,000 residents. The City is empowered to levy a property tax on both real and personal properties located within its boundaries. While it also is err�powered by state statute to extend its corporate limits by annexation, the City is a completely developed community and is bordered on all sides by other incorporated communities. The City �perates under the council-manager form of government. Policy-making and legislative authority are vested in a governing council (City Council) consisting of the mayor and six other members. The City Council is responsible, among other things, for passing ardinances, adopting the budget, appointing committees, and hiring both the City Man��ger and the City Attorney. The City Manager is responsible for carrying out the polici�s and ordinances of the City Council and for overseeing the day-to-day operation� of the City. The City Council is elected on a non-partisan basis. Council members serve four-year staggered terms, with three council members elected every two year:>. The mayor is also elected to serve a four-year term. The six council members are elected by section and ward; the mayor is elected at large. The City �rovides its residents and businesses with a full range of services, including police prcatection, the construction and maintenance of streets and other infrastructure, recreatior�al activities, building and housing inspection, health inspection, and planning and code enforcement. In addition, the City operates five enterprises for water, sewer, storm dra�nage, street lighting, and recycling services. Fire protection services are provided by a joint venture with the West Metro Fire- Rescue Uistrict, and water services are provided by a joint venture with the Golden Valley, Caystal, and New Hope Joint Water Commission. Additional information on these joint ventures can be found in the notes to the financial statements. Housing and redevelopment activities are provided through a legally separate Economic Development Authority (EDA), which functions as a department of the City. The City Council serves as the board of directors of the EDA and city staff serves as the EDA staff. Therefore, it has been included as an integral part of the City's financial statements. 0 The annual budget serves as the foundation for the City's financial planning and control. In addition, the government maintains budgetary confrols. The objective of budgetary controls is to ensure compliance with legal provisions embodied in the annual budget approved by the city council. The level of budgetary control (i.e. the level at which expenditures cannot legally exceed the budgeted amount) is at the fund level for all fund types, with the exception of the General Fund, which is at the department level. Budget-to-actual comparisons are provided in this financial report for each individual governmental fund for which an annual budget has been adopted. Factors Affectinq Economic Condition Local Economv Crystal is � blue-collar, bedroom community. While it has a small amount of industry, it has a good retail sector and is part of the northwest metro area with an abundance of living wagF jobs within easy commuting distance. Good schools and affordable housing make the City attractive to young families and first time home buyers. Access to major highways is good. Hennepin County is reconstructing the portion of Hennepin County Highway 81 (Highway 81) that passes through the City. Commercial and industrial properties along the Highway 81 corridor represent major redevelopment opportunitEes for future growth. The City Pxperienced its most rapid population growth from 1950 to 1970, when the population grew from 5,700 to its peak of 30,925. Population declined after 1970, as families matured and children left home. According to the 2010 Census, Crystal's population was 22,151. The most recent estimate from the Metropolitan Council is that Crystal's population is 22,417. The City saw significant increases in the market value of commercial/industrial and residential property until 2008. The City's estimated taxable market value decreased 4.2% from 2008 to 2009, 7.6% from 2009 to 2010, 10.1 % from 2010 to 2011, 13.3% from 2011 to 2012 and 12.1 % from 2012 to 2013. Most of the 2011 to 2012 change can be attributed to a change the State of Minnesota made in the way taxable values are calculated. Table 5 in the Statistical Section provides additional information on property values. Because the City is fully developed, redevelopment of blighted or underutilized sites is generally necessary to increase the community's tax base. The City investigates redevelopment options as they arise. The City purchased and demolished blighted or functionally obsolete houses during 2012 and prior years. No additional houses were purchased in 2013. Eleven lots acquired in 2012 and earlier years were sold to builders for construction of new homes during 2013. The City holds twenty-four lots that will be offered for sale for the construction of new homes. New homes increase the City's assessed valuation and encourage additional investment in the City's neighborhoods. 7 In addition, the City assists homeowners in redeveloping and remodeling the current housing stock so that as a change-over from older residents occurs, younger families will to be attracted to the City. The City offers a Home Improvement Incentive Rebate Program that provides up to a 15% rebate for residential home improvements. The goal is to improve the condition, quality, and desirability of the housing stock. Lonq-term Financial Planning Capital budgeting for the replacement of buildings, streets, parks, and vehicles is a major financial challenge. The City has an ongoing street reconstruction program designed to rebuild streets, add new curb/gutter/sidewalk, and add storm sewer. The street program is planned to be completed one phase/neighborhood at a time, over 16 phases. Phase 13 was built in 2013 and Phase 14 is planned for 2015. Hennepin County is reconstructing Highway 81, a major transportation artery serving the City and the surrounding area. Hennepin County acquired property in 2009 and construction began in 2010. The City will provide a local match of approximately $4,000,000 toward the project cost. More than half of the local match will come from a property tax supported bond issue, with the remainder from special assessments and utility funds. An annual property tax levy of over $500,000 will be collected from 2010 through 2014 to repay the bonds. The Major Building Replacement Fund was created in 2007 with a transfer of $8,000,000 from the Capital Improvement Revolving Fund. The purpose of the fund is to accumulate a replacement reserve for the eventual major remodeling or replacement of the City Hall/Police Station, Fire Stations 1& 2, Streets/Parks and Utility buildings, and Community Center. Land acquisition for a new public works facility is taking place in early 2014, with construction planned for 2014 and 2015. Other major building projects will be needed over the next fifteen years. Relevant Financial Policies It is the City's policy to maintain a fund balance in its General Fund of at least 45% of the next year's operating budget. This is needed for cash flow purposes. Property taxes and local government aid (LGA) from the State of Minnesota were 77.8% of the General Fund's revenue in 2013. The City operates on a calendar year, but half of the property taxes and LGA are received in July and the other half in December. Major Initiatives In 2012, the City purchased Cavanagh Elementary School from the Robbinsdale School District. The school building has been demolished in preparation for development of the site. An agreement has been signed with a developer for construction of a 130-unit affordable senior housing facility during 2014 and 2015. �. The Gity continues to seek opportunities to facilitate commercial and residential redevelopment, subsidize home improvements by eurrent owners, and fund construction projects that enhance the City's future develapment. Awards The Government Finance Qfficers Association of the United States and Canada (GFOA) awarded a Certificate of Achievement far Excellence in Financial Reporting to the City of Grystal for its comprehensiva annual finaneial report for the fiscal year ended December 31, 2012. In arder to be awarded a Certificate of Achievement, a government must publish an easily readable and efficiently organized comprehensive annual financial report. This report must satisfy both U.S. generally accepted accounting principles and applicable legal requirements. A Certifieate of Achievement is valid for a period of one year only. We believe that our current comprehensive annual financial repart cantinues to meet the Certificate of Achievement Program's requirements and we are submitting it to the GFOA to determine its eligibility for another certificate. Acknowled�ements The preparation of this report could not have been accomplished without the efficient and dedicated services of the staff af the finance department. We would like to express our appreciation to all members of the department who assisted and contributed ta the preparation of this report. Due credit also should be given to the mayor and the City Council for their interest and support in planning and conducting the operations of the government in a responsible and progressive manner. Respectfully submitted, � � =a. �� ,��;,�,��' ��. .. �. w. An ��e L. Norris C�y Manager �� , �� Charles Hansen Finance Director City of Crystal CITY OFFICIALS As of December 31, 2013 Elected Officials Mayor - Jim Adams Council Members - Laura Libby (Section I- Wards 1 and 2) Mark Hoffmann (Ward 1) Joseph Selton (Ward 2) John Budziszewski (Section II - Wards 3 and 4) Casey Peak (Ward 3) Julie Deshler (Ward 4) Appointed Officials City Manager - Anne Norris City Treasurer - Charles Hansen City Clerk - Christina Serres City Attorney - Kennedy & Graven, Chartered Term of Office Term Expires 4 Years 4 Years 4 Years 4 Years 4 Years 4 Years 4 Years City Prosecutor - MacMillan, Wallace, Athanases & Patera, PA 10 12/31 /2016 12/31 /2016 12/31 /2014 12/31 /2014 12/31 /2014 12/31 /2016 12/31 /2016 � N City of Crystal ORGANIZATION CHART Mayor & City Council (also serve as Crystal EDA) West Metro Fire- Rescue District Qoint with City of New Hope) City Manager (EDA Executive I City Attorney Director) , � Assist. City Managed : HR Manager �_._..__....'-,.. ._ _.._., .—.,,_� Human Resources CustomerService CityClerk Assessing Communications Information Tech. Safety Programs Licenses � � - City Records Elections Finance ' Community Dev. Director I Director ' Police Chief (EDA Deputy Executive I Public Works Directod � � Recereation ; Director) I � City Engineer i � Director Payroil & Benefits Utility Billing A/R & A/P Cash Mgmt. Financial RepoRing Insurance Patrol ' Investigations Crime Prevention Evidence Civil Defense Records Unit Planning Code Enforcement Bidg. Inspections Redevelopment Env. Health Street & Park Maint. ; Rec. Programming Utility operations �I Building Scheduling Engineering I Facility Rentais Forestry ' Pool / Waterslide Building Maint. • ► � Government Finance Officers Association Certificate of Achievement for Excellence in Financial Reporting Presented to City of Crystal Minnesota For its Comprehensive Annual Financial Report for the Fiscal Year Ended December 31, 2012 .t��..� Executive Director/CEO 12 FINANCIAL SECTION Expert advice. When you need it.s"' INDEPENDENT AUDITOR'S REPORT Honorable Mayor and Members of the City Council City of Crystal Crystal, Minnesota Report on the Financial Statements We have audited the accompanying financial statements of the governmental activities, the business-type activities, each major fund and the aggregate remaining fund information of City of Crystal, Minnesota, as of and for the year ended December 31, 2013, and the related Notes to the Financial Statements, which collectively comprise the City's basic financial statements as listed in the Table of Contents. Management's Responsibility for the Financial Statements Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatements, whether due to fraud or error. Auditor's Responsibility Our responsibility is to express opinions on these financial statements based on our audit. We did not audit the financial statements of the West Metro Fire-Rescue District nor the Golden Valley, Crystal, New Hope Joint Water Commission, joint ventures of the City which are disclosed in the notes to the City's financial statements, and in which the CYty reports an equity interest of $ 2,677,560 and $ 934,192, respectively. The financial statements of the District and Commission were audited by other auditors whose reports thereon have been furnished to us and our opinion, insofar as it relates to the amounts disclosed for the District and Commission, is based on the report of the other auditors. We conducted our audit in accordance with auditing standards generally accepted in the United States of America. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the iinancial statements. The procedures selected depend on the auditor's judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the City's preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the City's internal control. Accordingly, we exp��ess no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions. Expert advice. Wlten �ou iiee�l it. S^� Certifieri Public Accofexta�its Wealth Ma�iagement Pa�roll Services Business Valuations Tedinology Services St. Cloud 220 Park Avenue S. P.O. Box 1304 St. Cloud, Mnu�esota 56302 Phone: 320.2519010 Fax: 320.251.1784 Twin Cities 3800 American Boulevard W. Suite 1000 Muuteapolis, Muulesota 55431 Phone: 952.563.6800 Fax: 952.563.6801 13 www.kdv.com Toll Free 877.912.7696 Technology Help Desk 866.400.6426 D Opinions In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, the business-type activities, each major fund and the aggregate remaining fund information of the City of Crystal, Minnesota, as of December 31, 2013, and the respective changes in financial position and where applicable, cash flows, thereof, and the respective budgetary comparisons for the General Fund and EDA Special Revenue Fund for the year then ended in accordance with accounting principles generally accepted in the United States of America. Implementation of GASB 65 As discussed in Note 19 to the financial statements, the City has adopted the provisions of the Governmental Accounting Standards Board (GASB) Statement No. 65, Itenzs Previously Repoi�ted as Assets and Liabilities. Our opinion is not modified with respect to this matter. Other Matters Required Supplementaiy Info��naatio�z Accounting principles generally accepted in the Uvited States of America require that the Management's Discussion and Analysis, which follows this report letter, and the Schedule of Funding Progress as indicated in the Table of Contents, be presented to supplement the basic financial statements. Such information, although not a part of the basic financial statements, is required by GASB who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management's responses to our inquiries, the basic financial statements and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance. OtheY Information Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the City of Crystal's basic financial statements. The Introductory Section, combining and individual fund fnancial statements and schedules and Statistical Section are presented for purposes of additional analysis and are not a required part of the basic financial statements. The combining and individual fund financial statements and schedules are the responsibility of management and were derived from and relate directly to the underlying accounting and other records used to prepare the basic fnancial statements. Such information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the combining and individual fund financial statements and schedules are fairly stated, in all material respects, in relation to the basic fnancial statements as a whole. The Introductory Section and Statistical Section have not been subjected to the auditing procedures applied in the audit of the basic fnancial statements and accordingly, we do not express an opinion or provide any assurance on them. �-Z�, � K/� � Vi�r. � , KERN, DEWENTER, VIERE, LTD. Minneapolis, Minnesota May 13, 2014 14 City of Crystal MANAGEMENT'S DISCUSSION AND ANALYSIS For the Year Ended December 31, 2013 As management of the City of Crystal (the City), we have provided readers of the City's financial statements with this narrative overview and analysis of the financial activities of the City for the fiscal year ended December 31, 2013. We encourage readers to consider the information presented here in conjunction with additional information that we have furnished in our Letter of Transmittal, located previously in this report. Financial Hiqhliqhts The assets of the City exceeded its liabilities and deferred inflows of resources at the close of the most recent fiscal year by $116,109,813. Of this amount, $53,802,569 is considered unrestricted net position and may be used to meet the City's ongoing obligations to citizens and creditors. The City's total net position increased by $6,474,217, which includes a change in accounting principle of ($164,180). At the end of the fiscal year, total fund balance for the General Fund was $7,703,113, or 62.19% of total General Fund expenditures and transfers out. The City's total long term debt (excluding net OPEB obligation) increased by $2,339,051 during the fiscal year. The City's net OPEB obligation increased by $56,405. Overview of the Financial Statements Management's Discussion and Analysis is intended to serve as an introduction to the City's basic financial statements, which are comprised of three components: 1) government-wide financial statements; 2) fund financial statements; and 3) notes to the financial statements. This report also contains other supplementary information in addition to the basic financial statements themselves. Government-wide Financial Statements The government-wide financial statements are designed to provide readers with a broad overview of the City's finances, in a manner similar to private sector business. The Statement of Net Position presents information on all. of the City's assets and liabilities, with the difference between the two reported as net position. Over time, increases or decreases in net position may serve as a useful indicator of whether the financial position of the City is improving or deteriorating. The Statement of Activities presents information showing how the City's net position changed during the most recent fiscal year. All changes in net position are reported as soon as the underlying event giving rise to the change occurs, regardless of the timing of related cash flows. Thus, revenues and expenses are reported in this statement for some items that will only result in cash flows in future fiscal periods (e.g., uncollected taxes and earned but unused vacation leave). 15 City of Crystal MANAGEMENT'S DISCUSSION AND ANALYSIS For the Year Ended December 31, 2013 Both of the government-wide financial statements distinguish functions of the City that are principally supported by taxes and intergovernmental revenues (governmental activities) from other functions that are intended to recover all or a significant portion of their costs through user fees and charges (business-type activities). The governmental activities of the City include general government, public safety, public works, parks and recreation, and community development. The business-type activities of the City include enterprises for water, sanitary sewer, storm drainage, street lights, and recycling. The government-wide financial statements include not only the City itself (known as the primary government), but also the Economic Development Authority (EDA). The EDA is a legally separate entity which functions as a department of the City to provide housing and redevelopment assistance through the administration of various programs. Therefore, the EDA has been included as an integral part of the City's financial statements. Fund Financial Statements A fund is a grouping of related accounts that is used to maintain control over resources that have been segregated for specific activities or objectives. The City, like other state and local governments, uses fund accounting to ensure and demonstrate compliance with finance related legal requirements. All of the funds of the City can be divided into three categories, including governmental funds, proprietary funds, and fiduciary funds. Governmental Funds — Governmental funds are used to account for essentially the same functions reported as governmental activities in the government-wide financial statements. However, unlike the government-wide financial statements, governmental fund financial statements focus on near term inflows and outflows of spendable resources, as well as balances of spendable resources available at the end of the fiscal year. Such information may be useful in evaluating a governmenYs near term financing requirements. Because the focus of governmental funds is narrower than that of the government-wide financial statements, it is useful to compare the information presented for governmental funds with similar information presented for governmental activities in the government- wide financial statements. By doing so, readers may better understand the long term impact of the government's near term financing decisions. Both the governmental fund balance sheet and the governmental fund statement of revenues, expenditures, and changes in fund balances provide a reconciliation to facilitate this comparison between governmental funds and governmental activities. The City maintains twelve individual governmental funds. Information is presented separately in the governmental fund balance sheet and in the governmental fund statement of revenues, expenditures, and changes in fund balances for the General, EDA, Debt Service, Capital Improvement Revolving, Street Reconstruction, and Major Building Replacement funds, all of which are considered to be major funds. Data from the other six governmental funds are combined into a single aggregated presentation. Individual fund data for each of these nonmajor governmental funds is provided in the form of combining statements elsewhere in this report. 16 City of Crystal MANAGEMENT'S DISCUSSION AND ANALYSIS For the Year Ended December 31, 2013 The City adopts an annual appropriated budget for all of its governmental funds. Budget to actual comparisons are provided in this financial report for each individual governmental fund for which an annual budget has been adopted. Proprietary Funds — The City maintains two different types of proprietary funds. Enterprise funds are used to report the same functions presented as business-type activities in the government-wide financial statements. The City uses enterprise funds to account for its water, sanitary sewer, storm drainage, street lights, and recycling operations. Internal service funds are an accounting device used to accumulate and allocate costs internally among the City's various functions. The City uses internal service funds to account for its self- insurance and post-employment health benefits activities. Because both of these activities predominantly benefit governmental rather than business-type functions, they have been included within governmental activities in the government-wide financial statements. Proprietary funds provide the same type of information as the government-wide financial statements, only in more detail. The proprietary fund financial statements provide separate information for the water, sanitary sewer, storm drainage, street lights, and recycling operations, all of which are reported as major funds of the City. Both internal service funds are combined into a single aggregated presentation in the proprietary fund financial statements. Individual fund data for the internal service funds is provided in the form of combining statements elsewhere in this report. Fiduciary Funds — Fiduciary funds are used to account for resources held for the benefit of parties outside the government. Fiduciary funds are not reflected in the government-wide financial statements because the resources of those funds are not available to support the City's own programs. The accounting used for fiduciary funds is much like that used for proprietary funds. Notes to the Financial Statements — The notes provide additional information that is essential to a full understanding of the data provided in the government-wide and fund financial statements. Other Information — Required Supplementary Information concerning the City's progress in funding its obligation to provide pension and OPEB benefits to its employees is presented immediately following the notes to the financial statements. Combining and individual fund statements and schedules for nonmajor funds are presented immediately following the Required Supplementary Information. 17 City of Crystal MANAGEMENT'S DISCUSSION AND ANALYSIS For the Year Ended December 31, 2013 Government-wide Financial Analysis Net Position - The City has 38.41 % of its total net position invested in capital assets (including land, buildings and structures, improvements other than buildings, machinery and equipment, office equipment and furniture, software, vehicles and trailers, and infrastructure), less any related outstanding debt used to acquire those assets. The City uses these capital assets to provide services to citizens. Consequently, these assets are not available for future spending. Although the City's investment in its capital assets is reported net of related debt, it should be noted that the resources needed to repay this debt must be provided from other sources, since the capital assets themselves cannot be used to liquidate these liabilities. An additional 15.25% of the City's net position represents resources that are subject to external restrictions on how they may be used. The remaining balance of 46.34% represents unrestricted net position that may be used to meet the government's ongoing obligations to citizens and creditors. At the end of the current fiscal year, the City is able to report positive balances in all three categories of net position, both for the government and business-type activities. The same situation held true for the prior fiscal year. A summary of the City's net position follows: Current and other assets Equity interest in joint venture Capital assets Total Assets Long-term liabilities outstanding Other liabilities Total Liabilities Unavailable revenue Total Deferred Inflows Of Resources Net Position: Net investment in capital assets Restricted Unrestricted Total Net Position Govemmental Activities 2013 2012 $ 62,147,962 $ 59,765,541 2,677,560 2,743,669 44,389,024 39,785,933 109,214,546 102,295,143 Net Position Business-type Activities Total 2013 2012 2013 2012 $ 9,685,015 $ 10,171,748 $ 71,832,977 $ 69,937,289 934,192 722,800 3,611,752 3,466,469 15,655,823 13,921,133 60,044,847 53,707,066 26,275,030 24,815,681 135,489,576 127,110,824 15,147,846 13,248,849 107,881 102,174 15,255,727 13,351,023 3,374,177 3,748,659 396,501 375,546 3,770,678 4,124,205 18,522,023 16,997,508 504,382 477,720 19,026,405 17,475,228 353,358 0 0 0 353,358 0 353,358 0 0 0 353,358 0 28,944,085 26,574,766 15,655,823 13,921,133 44,599,908 40,495,899 17,707,336 14,772,670 0 0 17,707,336 14,772,670 43,687,744 43,950,199 10,114,825 10,416,828 53,802,569 54,367,027 $ 90,339,165 $ 85,297,635 $ 25,770,648 $ 24,337,961 $ 116,109,813 $ 109,635,596 � City of Crystal MANAGEMENT'S DISCUSSION AND ANALYSIS For the Year Ended December 31, 2013 A summary of the City's changes in net position and revenues and expenses for 2013 and 2012 follows: Revenues: Program revenues - Charges for services Operating grants and contributions Capital grants and contributions General revenues - Propertytaxes Grants and contributions not restricted to specific programs Other Total Revenues Changes in Net Position Governmental Activities Business-type Activities Total 2013 2012 2013 2012 2013 2012 $ 2,088,443 $ 1,759,032 $ 5,797,551 $ 5,883,686 $ 7,885,994 $ 7,642,718 667,622 1,164,000 414,534 336,103 1,082,156 1,500,103 6,877,723 6,008,708 1,319,522 1,695 8,197,245 6,010,403 9,561,519 9,710,807 0 0 9,561,519 9,710,807 1,472,223 1,478,220 0 0 1,472,223 1,478,220 143,758 586,022 67,541 110,292 211,299 696,314 20,811,288 20,706,789 7,599,148 6,331,776 28,410,436 27,038,565 Expenses: General government 2,091,395 1,992,060 0 0 2,091,395 1,992,060 Publicsafety 5,900,593 5,605,172 0 0 5,900,593 5,605,172 Public works 2,655,529 4,345,225 0 0 2,655,529 4,345,225 Parksandrecreation 2,548,785 2,110,078 0 0 2,548,785 2,110,078 Communitydevelopment 1,570,132 2,180,213 0 0 1,570,132 2,180,213 Interest on long-term debt 586,388 498,884 0 0 586,388 498,884 Water 0 0 3,092,654 3,094,744 3,092,654 3,094,744 Sanitary sewer 0 0 1,927,664 1,874,699 1,927,664 1,874,699 Storm drainage 0 0 760,372 782,897 760,372 782,897 Street lights 0 0 309,396 173,308 309,396 173,308 Recycling 0 0 329,131 329,106 329,131 329,106 Total Expenses 15,352,822 16,731,632 6,419,217 6,254,754 21,772,039 22,986,386 Change in Net Position BeforeTransfers 5,458,466 3,975,157 Transfers (252,756) (177,580) Change in Net Position 5,205,710 3,797,577 Net Position - Beginning of Year 85,297,635 82,775,058 Prior Period Adjustment 0 (1,275,000) Change in Accounting Principle (164,180) 0 Net Position - Beginning of Year 1,179,931 77,022 6,638,397 252,756 177,580 0 1,432,687 254,602 6,638,397 24, 337, 961 24, 083, 359 109, 635, 596 0 0 0 0 (164,180) 4, 052,179 0 4,052,179 106,858,417 (1, 275, 000) 0 (As Restated) 85,133,455 81,500,058 24,337,961 24,083,359 109,471,416 105,583,417 Net Position - End of Year $ 90,339,165 $ 85,297,635 $ 25,770,648 $ 24,337,961 $ 116,109,813 $ 109,635,596 19 City of Crystal MANAGEMENT'S DISCUSSION AND ANALYSIS For the Year Ended December 31, 2013 Governmental Activities — Governmental activities increased the City's governmental-type net position by $5,041,530, or 5.91%, accounting for 77.87% of the total growth in the City's net position. The increase of $5,041,530 includes a change in accounting principle of ($164,180). Key elements of the net increase include: • The Debt Service Fund recorded an increase of $1,034,739 in its fund balance during the current fiscal year, primarily due to prepayments of special assessments. This contributed towards the net increase. • Capital outlay additions, net of depreciation expense, accounted for $4,657,745 of the net increase. Business-type Activities — Business-type activities increased the City's business-type net position by $1,432,687, or 5.89%, accounting for 21.13% of the total growth in the City's net position. Key elements of the net increase include: Capital assets (net of accumulated depreciation) increased by $1,734,690. Acquisitions of new capital assets were largely offset by depreciation on capital assets and disposals of capital assets. The exception was the Storm Drainage Fund, where a significant amount of storm sewer infrastructure was added to capital assets as a result of the Phase 12 street reconstruction project. • Rate increases: The City Council approved a rate increase of 2.11 % for the water utility, which increased rates charged per unit of water from $3.94 in 2012 to $4.05 in 2013. The City Council approved a rate increase of 1.30°/o for the sanitary sewer utility, which increased rates charged from $46.20 per quarter for residential properties in 2012 to $46.80 per quarter in 2013. The City Council approved a rate increase of 5.88% for the storm drainage utility, which increased rates charged from $10.20 per quarter for residential properties in 2012 to $10.80 per quarter in 2013. The City Council approved a rate increase of 3.57% for the street light utility, which increased rates charged from $4.20 per quarter for residential properties in 2012 to $4.35 per quarter in 2013. r►, S�,000,000 $6,000,000 $5,000,000 $4,000,000 $3,000,000 ( '�! $2,000,000 $1,Q00,000 $0 � S�,000,000 ', $6,000,000 $5,000,000 $4,000,000 $3,OQ0,000 $2,000,000 $1,Q00,000 $0 City of Crystal MANAGEMENT'S DISCUSSIQN AND ANALYSIS For the Year Ended December 31, 2013 2013 Expenses and Program Revenues - Governmental Activities General Public safety Public works Parks and Community Interest on government recreation development long-term debt 2012 Expenses and Program Revenues - Governmental Activities General Public safety Public works Parks and Cammunity Interest on government recreation development long-term debt 21 Expenses Revenues Expenses Revenues City of Crystal MANAGEMENT'S DISCUSSIQN AND ANALYSIS For the Year Ended December 31, 2013 2013 Revenues by Source - Gavernmental Activities Capital grants and rn n+r� h � ��+L'..�, � Unrestricted investment earnii 1% Grants and contributions not restricted to specifi programs 7% cap cc Unrestricted investment earnii 3% Grants and contributionsnot restricted to specifi� programs 7% 4b% 2012 Revenues by Source - Governmental Activities For services .0% Operating grants and contributions 3% xes Charga� fnr sarvirac 22 Operating grants and contributions 6% �perty taxes 47 % 3,500,000 3,000,000 2,50Q,000 z,00a,000 � 1,500,000 ' 1,Q00,000 500,000 0 3,500,000 3,000,000 I ' 2,500,000 2,000,000 1,500,000 1,00O,OOd �.Y�I�I[iI�I�I Gity of Crystal MANAGEMENT'S DISCUSSION AND ANALYSIS For the Year Ended December 31, 2013 2013 Expenses and Program Revenues - Business Type Activities Water Sanitary Sewer Storm drainage Street lights Reeycling 2012 Expenses and Program Revenues - Business Type Activities Water Sanitary Sewer Storm drainage Street lights Recycling 23 Expenses � ��Revenues � Expenses i Revenues City of Crystal MANAGEMENT'S DISCUSSIUN AND ANALYSIS For the Year Ended Deeember 31, 2013 Un restricted investment earnings 0% Capital grants and contributions 17% Operating gr� contributians 2013 Revenues by Saurce - Business Type Activities 6% Unrestricted investment earnii 2% Capital grants and contributions 0% Operating grants and contributions 5% Charges for services 77 % 2012 Revenues by Source - Business Type Activities 24 Charges for services 93% City of Crystal MANAGEMENT'S DISCUSSION AND ANALYSIS For the Year Ended December 31, 2013 Financial Analysis of the Citv's Funds Governmental Funds — At the end of the fiscal year, the City's governmental funds reported combined ending fund balances of $45,710,973, an increase of $1,086,857 in comparison with the prior year. Approximately 15.01 % of this total amount ($6,862,599) constitutes unassigned fund balance, which is available for spending at the government's discretion. The remainder of fund balance has been classified as nonspendable ($78,455), restricted ($7,130,877), committed ($31,581,938), and assigned ($57,104). The General Fund is the main operating fund of the City. At the end of the fiscal year, total fund balance was $7,703,113. Unassigned fund balance was $6,862,599 and $840,514 was committed for compensated absences. As a measure of the General Fund's liquidity, it may be useful to compare total fund balance to total fund expenditures. Total fund balance represents 62.19% of total General Fund expenditures and transfers out. The total fund balance is slightly more than the balance called for by the City's fund balance policy. Fund balance provides working capital that supports operations until funds are received in June and July from the first current-year tax settlement. There was an increase of $305,646 in the fund balance of the General Fund during the current fiscal year. Total revenues were $274,603 higher than the final budget. Revenues for property taxes; special assessments; licenses, permits, and inspections; intergovernmental; charges for services; and miscellaneous were higher than budget. Actual expenditures were $98,413 less than the final budget, primarily due to employee turnover. Both the revenue and expenditure variances were higher than would normally be expected. Combined they produced a surplus of $373,016. The EDA Fund recorded an increase of $163,053 in its fund balance during the current fiscal year. Total revenues were higher than budget by $131,809. Intergovernmental revenues were higher than budget by $323,819 and sale of land was lower than budget by $193,344, accounting for much of the net increase. At the end of the fiscal year, fund balance of $35,651 was restricted for a MURL (MN Urban and Rural Homesteading) program revolving loan. The remainder of the fund balance of $3,914,649 was committed for economic development projects. The Debt Service Fund has a total fund balance of $5,440,681, all of which is restricted for the payment of debt service. The net increase in fund balance during the current fiscal year was $1,034,739. For additional transaction details, refer to the Long Term Debt section located later in this Management's Discussion and Analysis, or to Notes 6 — 8 in the notes to the financial statements. 25 City of Crystal MANAGEMENT'S DISCUSSION AND ANALYSIS For the Year Ended December 31, 2013 There was a decrease of $134,650 in the fund balance of the Capital Improvement Revolving Fund during the current fiscal year. Several projects budgeted for 2013 were not completed during 2013 and will be completed in 2014. All of the fund balance of $8,713,979 is committed. The Street Reconstruction Fund recorded a decrease of $202,224 in its fund balance during the current fiscal year. This was primarily because some state aid for streets related to Phase 13 won't be received until future years. Major construction work on Phase 13 of the 16-phase street reconstruction program was completed during 2013. All of the fund balance of $2,261,153 is committed. The Major Building Replacement Fund has a total fund balance of $10,286,268, all of which is committed. Activity during the year included an expenditure of $43,864 for architectural services to study the replacement of the public works facility. Fund balance decreased by $22,695. Proprietary Funds — The City's proprietary funds provide the same type of information found in the government-wide financial statements, but in more detail. Unrestricted net position in the City's enterprise funds totaled $10,114,825 at the end of the fiscal year. The sanitary sewer, storm drainage and recycling funds reported increases in net position of $45,663, $1,483,936, and $5,177, respectively. The water and street lights funds reported decreases in net position of $34,480 and $67,609 respectively. The storm drainage utility received a capital contribution of $1,550,646 from Hennepin County, relating to assets constructed as part of the County Highway 81 reconstruction project. Budqet Hiqhliqhts As is customary practice for the City, its budget was amended several times to reflect the occurrences of items not factored into the original budget. Significant budget amendments in the General Fund include the following: •$66,750 increase in the transfer to the Capital Improvement Revolving Fund. •$206,786 increase in revenues and $206,786 increase in expenditures to record the receipt of fire pension aid from the State of Minnesota and payment of the aid to the Fire Relief Association. •$187,650 of increases in the Mayor & Council, Human Resources, Legal, Building Inspection, Housing Inspection, Street Maintenance, and Community Center departments to cover operating costs. These were offset by reductions of $187,000 in the Administration, Police, and Park Maintenance departments. � City of Crystal MANAGEMENT'S DISCUSSION AND ANALYSIS For the Year Ended December 31, 2013 Capital Assets The City's net capital assets for its governmental and business-type activities as of December 31, 2013, are $60,044,847. This balance represents a net increase of $6,337,781 from the prior year. Additional details of capital asset activity for the year can be found in Note 5 in the notes to the financial statements. Major capital activity during the year included the following: Major work on Phase 13 of the ongoing street reconstruction project was completed during 2013. Minor finishing work will be completed in 2014. Construction in progress as of the close of the fiscal year decreased to $4,866,416, compared to $5,520,682 the prior year. Capital contributions from Hennepin Country relating to assets constructed as part of the County Highway 81 reconstruction project. Capital contributions benefited governmental and business-type activities by $2,449,947 and $1,319,522, respectively. Lonq-term Debt The City's total long term debt increased by $2,339,051, or 16.10%, during the fiscal year. Normal required annual payments were made on bonds payable, notes payable, and compensated absences. During 2013, the City issued G.O. Street Improvement Bonds, Series 2013A, to finance special assessments relating to Phase 13 street reconstruction. It also issued G.O. Street Reconstruction Bonds, Series 2013B, to finance reconstruction of the portion of County Highway 81 that runs through the City. Additional details of long term debt activity for the year can be found in Notes 6— 8 in the notes to the financial statements. The City's sound financial management and strong financial position, as evidenced by favorable reserves, has earned the City an Aa2 rating from Moody's Investors Service on its G.O. debt. Moody's Investors Service last completed a rating review in 2013 with no change in the rating. The City expects to receive the Aa2 rating in the future. State statutes limit the amount of G.O. debt a governmental entity may issued to 3% of total taxable market value. The current debt limitation for the City is $34,103,000, which is significantly higher than the City's outstanding G.O. debt of $1,734,920. Economic Factors and Next Year's Budqets and Rates Economic factors affect the preparation of annual budgets. The following factors were considered in preparing the City's budget for the 2014 fiscal year: 27 City of Crystal MANAGEMENT'S DISCUSSION AND ANALYSIS For the Year Ended December 31, 2013 • The City is acquiring property and will initiate construction of a new public works facility in 2014. This is expected to cost $3,000,000 for land acquisition and $10,000,000 for construction. Construction is expected to be completed in the summer of 2015. Funding will come entirely from internal sources. The Major Building Replacement Fund will provide $10,000,000 and several other funds will make smaller contributions to the project. Although this will reduce the amount of cash and investments held by the City, about $40,000,000 of cash and investments will remain after the project. This is more than adequate for cash flow and emergency purposes. • The City is providing a local matching dollar amount for the rebuilding of County Highway 81, which passes through Crystal. The rebuilding will happen in two phases continuing through 2014. Property acquisition on the first and larger of the phases occurred in 2009 and construction commenced in 2010. The City's local match is expected to total approximately $4,000,000. Funding sources will include the utility funds for $860,000, special assessments for $510,000, and bond issuances for $2,600,000, to be repaid by a property tax levy. • The 2014 budget includes a 0.59% tax levy decrease. This will be supplemented by increases in other revenues to cover an inflationary increase in the operating budget. • The City annually updates a five year utility rate study reviewing operational and capital needs for each utility. For 2014, water rates increased 5.15%, sewer rates increased 3.86%, storm drainage rates increased 8.33%, and street light rates increased 6.90%. Recycling rates are unchanged. Requests for Information Questions concerning any of the information provided in this report or requests for additional information should be addressed to: City of Crystal Attn: Finance Director 4141 Douglas Drive N. Crystal, MN 55422 : Government-Wide Financial Statements City of Crystal STATEMENT OF NET POSITION December 31, 2013 ASSETS Cash and cash equivalents Investments Accrued interest Accounts receivable Delinquent taxes receivable Special assessments receivable Due from other governments Inventory Prepaid items Otherassets Land held for resale Notes receivable Contract for deed receivable Equity interest in joint venture Capital assets (net of accumulated depreciation, where applicable) - Land Buildings and structures Improvements other than buildings Machinery and equipment Office equipment and furniture Software Vehicles and trailers Infrastructure Construction in progress Total Assets LIABILITIES Accounts payable and other current liabilities Interest payable Unearned revenue Noncurrent liabilities - Due within one year Due in more than one year Net OPEB obligation Total Liabilities DEFERRED INFLOWS OF RESOURCES Unavailable revenue - licenses Unavailable revenue - state aid Total Deferred Inflows of Resources NET POSITION Net investment in capital assets Restricted for: TIF projects MURL revolving fund Debt service Special projects Unrestricted Total Net Position Governmental Business-type Activities Activities Total $4,232,953 $719,422 $4,952,375 42,213,751 7,177,724 49,391,475 113,618 21,159 134,777 83, 610 1,150, 783 1, 234, 393 229,956 0 229,956 13, 242, 901 356, 330 13, 599, 231 350,188 218,653 568,841 0 39,644 39,644 78,455 0 78,455 0 1, 300 1, 300 1,403,155 0 1,403,155 74,914 0 74,914 124,461 0 124,461 2,677,560 934,192 3,611,752 3,876,867 759,062 4,635,929 4,218,393 59,357 4,277,750 2,650,682 181,008 2,831,690 1,143,596 2,176,920 3,320,516 158,441 5, 857 164, 298 1,304 0 1,304 975,344 78,944 1,054,288 27, 414, 765 11,477, 891 38, 892, 656 3,949,632 916,784 4,866,416 109,214,546 26,275,030 135,489,576 1,209,254 372,140 1,581,394 197,254 0 197,254 24,085 0 24,085 1,943,584 24,361 1,967,945 14,823,462 75,856 14,899,318 324,384 32,025 356,409 18,522,023 504,382 19,026,405 71,060 0 71,060 282,298 0 282,298 353,358 0 353,358 28,944,085 15,655,823 44,599,908 1,637,259 0 1,637,259 35,651 0 35,651 15,973,124 0 15,973,124 61,302 0 61,302 43,687,744 10,114,825 53,802,569 $90,339,165 $25,770,648 $116,109,813 The notes to the financial statements are an integral part of this statement. 29 City of Crystal STATEMENT OF ACTIVITIES For the Year Ended December 31, 2013 Net(Expense) Revenue and Program Revenues Changes In Net Position Operating Capital Charges for Grants and Grants and Governmental Business-type Expenses Services Contributions Contributions Activities Activities Total Functions / Proqrams Governmental Activities - General government $2,091,395 $256,133 $19,697 $53,371 Public safety 5,900,593 429,740 517,652 11,930 Publicworks 2,655,529 9 32,678 6,382,638 Parks and recreation 2,548,785 500,561 55,451 1,250 Community development 1,570,132 902,000 42,144 428,534 Interest on long-term debt 586,388 0 0 0 Total Governmental Activities 15,352,822 2,088,443 667,622 6,877,723 Business-type Activities - Water 3,092,654 2,637,830 398,815 0 Sanitary sewer 1,927,664 1,939,539 7,655 0 Storm drainage 760,372 717,005 7,882 1,280,646 Street lights 309,396 169,015 182 38,876 Recycling 329,131 334,162 0 0 Total Business-type Activities 6,419,217 5,797,551 414,534 1,319,522 Total Government $21,772,039 $7,885,994 $1,082,156 $8,197,245 Generai revenues - Property taxes Grants and contributions not restricted to specific programs Unrestricted investment earnings Gain on disposition of capital assets Transfers Total General Revenues and Transfers Change In Net Position Net Position - Beginning of Year Change In Accounting Principle Net Position - Beginning of Year (As Restated) Net Position - End of Year The notes to the financial statements are an integral part of this statement. 3� ($1,762,194) $0 ($1,762,194) (4,941,271) 0 (4,941,271) 3,759,796 0 3,759,796 (1,991,523) 0 (1,991,523) (197,454) 0 (197,454) (586,388) 0 (586,388) (5,719,034) 0 (5,719,034) 0 (56,009) (56,009) 0 19, 530 19, 530 0 1,245,161 1,245,161 0 (101,323) (101,323) 0 5,031 5,031 0 1,112, 390 1,112, 390 (5,719,034) 1,112,390 (4,606,644) 9,561,519 0 9,561,519 1,472,223 0 1,472,223 96,678 16, 241 112, 919 47,080 51,300 98,380 (252,756) 252,756 0 10,924,744 320,297 11,245,041 5,205,710 1,432,687 6,638,397 85,297,635 24,337,961 109,635,596 (164,180) 0 (164,180) 85,133,455 24,337,961 109,471,416 $90,339,165 $25,770,648 $116,109,813 Fund Financial Statements This page intentionally left blank 31 BALANCE SHEET Governmental Funds December 31, 2013 ASSETS Cash and cash equivalents Investments Accrued interest Accounts receivable Delinquent taxes receivable Special assessments receivable Due from other governments Prepaid items Land held for resale Notes receivable Contract for deed receivable Total Assets LIABILITIES Accounts payable Due to other governments Accrued salaries and wages Deposits payable Retainage payable Unearned revenue Total Liabilities DEFERRED INFLOWS OF RESOURCES Unavailable revenue - property taxes Unavailable revenue - special assessments Unavailable revenue - notes receivable Unavailable revenue - contract for deed receivable Unavailable revenue - licenses Unavailable revenue - state aid Total Deferred Infiows Of Resources FUND BALANCES Nonspendable Restricted Committed Assigned Unassigned Total Fund Balances Total Liabilities, Deferred Infiows Of Resources, and Fund Balances Capital Improvement EDA - Revolving - Special Debt Capital General Revenue Service Projects $740,406 $233,419 $503,701 $774,955 7,372,971 2,328,832 5,025,461 7,731,776 16,531 5,661 10,480 22,547 81,739 0 0 1,871 166,799 5,474 13,667 0 128,034 0 10,716,030 556,642 154,352 1,879 20,917 123,602 0 0 0 66,053 0 1,403,155 0 0 0 74,914 0 0 0 124,461 0 0 $8,660,832 $4,177,795 $16,290,256 $9,277,446 $163,020 $4,645 $0 $2,960 92,653 0 119,878 0 310,521 10,198 0 0 1,547 7,803 0 0 0 0 0 3,865 24,085 0 0 0 591,826 22,646 119,878 6,825 166,799 5,474 13,667 0 128,034 0 10,716,030 556,642 0 74,914 0 0 0 124,461 0 0 71,060 0 0 0 0 0 0 0 365,893 204,849 10,729,697 556,642 0 0 0 66,053 0 35,651 5,440,681 0 840,514 3,914,649 0 8,647,926 0 0 0 0 6,862,599 0 0 0 7,703,113 3,950,300 5,440,681 8,713,979 $8,660,832 $4,177,795 $16,290,256 $9,277,446 The notes to the financial statements are an integral part of this statement. 32 Major Street Building Reconstruction - Replacement - Other Total Capital Capital Governmental Governmental Projects Projects Funds Funds $260,673 $935,025 $670,993 $4,119,172 2,600,755 9,328,814 6,689,938 41,078,547 8,448 27,578 19,188 110,433 0 0 0 83,610 0 0 44,016 229,956 1,696,687 0 145,508 13,242,901 41,213 0 8,225 350,188 0 0 12,402 78,455 0 0 0 1,403,155 0 0 0 74,914 ' 0 0 0 124,461 $4,607,776 $10,291,417 $7,590,270 $60,895,792 $530 $5,149 $42,591 $218,895 0 0 2,676 215,207 0 0 0 320,719 0 0 0 9,350 367,108 0 0 370,973 0 0 0 24,085 367,638 5,149 45,267 1,159,229 0 0 44,016 229,956 1,696,687 0 145,508 13,242,901 0 0 0 74,914 0 0 0 124,461 0 0 0 71,060 282,298 0 0 282,298 1,978,985 0 189,524 14,025,590 0 0 12,402 78,455 0 0 1,654,545 7,130,877 2,261,153 10,286,268 5,631,428 31,581,938 0 0 57,104 57,104 0 0 0 6,862,599 2,261,153 10,286,268 7,355,479 45,710,973 $4,607,776 $10,291,417 $7,590,270 $60,895,792 �� City of Crystal RECONCILIATION OF THE BALANCE SHEET OFGOVERNMENTALFUNDS TO THE STATEMENT OF NET POSITION December 31, 2013 TOTAL FUND BALANCES - GOVERNMENTAL FUNDS Amounts reported for governmental activities in the Statement of Net Position are different because: Capital assets are included in net position but are excluded from fund balances because they do not represent financial resources. Cost of capital assets Less: accumulated depreciation $81,350,368 (36,961,344) Certain revenues are included in net position but are excluded from fund balances until they are available to liquidate liabilities of the current period. Unavailable revenue relating to: Delinquent taxes Special assessments Notes receivable Contract for deed receivable 229, 956 13, 242, 901 74, 914 124,461 Long-term liabilities are included in net position but are excluded from fund balances until due and payable. Premium on debt Discount on debt Accrued interest payable Bonds payable Compensated absences Net OPEB obligation (121,135) 71,196 (197,254) (15, 876, 593) (840,514) (324,384) Internal service funds are used by management to charge the costs of insurance and post employment health benefits to individual funds. The assets and liabilities of the internal service funds are included in governmental activities in the Statement of Net Position. Equity interests in underlying capital assets of joint ventures associated with governmental funds are not reported in such funds because they do not represent financial assets. Equity interest in joint venture - West Metro Fire-Rescue District TOTAL NET POSITION - GOVERNMENTAL ACTIVITIES The notes to the financial statements are an integral part of this statement. � $45,710,973 44, 389, 024 13,672,232 (17, 288, 684) 1,178, 060 2,677,560 $90, 339,165 This page intentionally left blank 35 City of Crystal STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES Governmental Funds For the Year Ended December 31, 2013 REVENUES Property taxes Special assessments Licenses, permits and inspections Intergovernmental Charges for sales and/or services Administrative services provided to other funds Fines and forfeitures Interest Net increase (decrease) in fair value of investments Miscellaneous Total Revenues EXPENDITURES Current - General government Public safety Public works Parks and recreation Community development Capital outlay Debt service - Principal Interest and other fees Total Expenditures EXCESS (DEFICIENCY) OF REVENUES OVER EXPENDITURES OTHER FINANCING SOURCES (USES) Issuance of bonds Premium on bonds issued Proceeds from sale of property and equipment Transfers in Transfers out Total Other Financing Sources (Uses) NET CHANGE IN FUND BALANCES FUND BALANCES - BEGINNING OF YEAR FUND BALANCES - END OF YEAR Capital Improvement EDA - Revolving - Special Debt Capital General Revenue Service Projects $8,211,693 $295,242 $775,688 $0 232,076 0 1,936,541 142,503 843,741 0 0 0 2,019,368 323,819 0 74,523 686,100 175,126 0 34,728 291,368 0 0 0 374,684 0 0 0 69,480 28,574 48,748 94,776 (56,798) (19,449) (36,010) (77,469) 20,504 20,903 0 78,030 12,692,216 824,215 2,724,967 347,091 2,120,666 0 0 0 5,617,980 0 0 0 1,151,659 0 0 0 2,022,820 0 0 0 630,825 631,948 0 0 0 32,350 0 1,615,940 0 0 1,272,293 0 0 0 417,935 3,265 11,543,950 664,298 1,690,228 1,619,205 1,148,266 159,917 1,034,739 (1,272,114) 0 0 0 395,000 0 0 0 0 0 0 0 47,350 0 3,136 0 695,114 (842,620) 0 0 0 (842,620) 3,136 0 1,137,464 305,646 163,053 1,034,739 (134,650) 7,397,467 3,787,247 4,405,942 8,848,629 � $7,703,113 $3,950,300 $5,440,681 $8,713,979 The notes to the financial statements are an integral part of this statement. 36 Major Street Building Reconstruction - Replacement - Capital Capital Projects Projects $0 1,110,219 0 601,059 0 0 0 35,507 (29,023) 320,101 2,037,863 0 0 0 0 0 5,477,987 $0 0 0 0 0 0 0 115,920 (94,751) 0 21,169 26,824 0 0 0 0 17,040 Other Total Governmental Governmental Funds Funds $358,890 $9,641,513 45,904 3,467,243 0 843,741 27,993 3,046,762 3,571 899,525 0 291,368 23,075 397,759 80,655 473,660 (65,926) (379,426) 63,340 502,878 537, 502 19,185, 023 10,674 2,158,164 61,223 5,679,203 160, 060 1, 311, 719 6,359 2,029,179 201,789 1,464,562 184,560 7,327,877 0 0 86,518 1,358,811 55,726 0 87,255 564,181 5,533,713 43,864 798,438 21,893,696 (3,495,850) (22,695) 3,235,000 0 58,626 0 0 0 0 0 0 0 3,293,626 (202,224) (22,695) (260,936) (2,708,673) 0 3,630,000 0 58,626 9,960 57,310 197,100 895,350 (3,136) (845,756) 203,924 3,795,530 (57,012) 1,086,857 2,463,377 10,308,963 7,412,491 44,624,116 $2,261,153 $10,286,268 $7,355,479 $45,710,973 �7 City of Crystal RECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS TO THE STATEMENT OF ACTIVITIES For the Year Ended December 31, 2013 NET CHANGE IN FUND BALANCES - TOTAL GOVERNMENTAL FUNDS Amounts reported for governmental activities in the Statement of Activities are different because: Governmental funds report capital outlays as expenditures. However, in the Statement of Activities, the cost of those assets is allocated over their estimated useful lives and reported as depreciation expense. This is the amount by which capital outlays exceeded depreciation in the current period. Capital outlay Depreciation expense The net effect of various miscellaneous transactions involving capital assets (i.e., sales, trade-ins and donations) is to decrease net assets. Certain revenues are included in the change in net position but are excluded from the net change in fund balances until they are available to liquidate liabilities of the current period. Unavailable revenue - December 31, 2013 Unavailable revenue - December 31, 2012 Net income (loss) from joint venture - West Metro Fire-Rescue District The issuance of long-term debt provides current financial resources to governmental funds, while repayment of the principal of long-term debt consumes the current financial resources of governmental funds. Neither transaction, however, has any effect on net position. Also, governmental funds report the effect of premiums, discounts and similar items when debt is first issued, whereas these amounts are deferred and amortized in the Statement of Activities. Proceeds from bonds issued Bond principal payments Write off outstanding balance of note payable Premium on bonds issued Some expenses reported in the Statement of Activities do not require the use of current financial resources and, therefore, are not reported as expenditures in governmental funds. Amortizatioan of bond premium Amortization of bond discount Accrued interest payable Compensated absences Net OPEB obligation Internal service funds are used by management to charge the costs of insurance and post employment health benefits to individual funds. The net revenue of certain activities of internal service funds is reported with governmental activities. CHANGE IN NET POSITION PER STATEMENT OF ACTIVITIES - GOVERNMENTAL ACTIVITIES The notes to the financial statements are an integral part of this statement. : $1,086,857 $7,932,288 (3,274,543) 4,657,745 (54,654) 13,672,232 (11,814,353) 1,857,879 (66,109) (3,630,000) 1,272,293 35,081 (58,626) (2,381,252) 6,126 (6,353) (22,207) 42,428 (50,592) (30,598) 135,842 $5,205,710 This page intentionally left blank 39 City of Crystal STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL General Fund For the Year Ended December 31, 2013 REVENUES Property taxes Special assessments Licenses, permits and inspections Intergovernmental Charges for sales and/or services Administrative services provided to other funds Fines and forfeitures I nterest Net increase (decrease) in fair value of investments Miscellaneous Total Revenues EXPENDITURES Current - General government - Mayor and council Administration Human resources Assessing Legal Elections Finance City buildings Total General Government Public safety - Police Fire Total Public Safety Public works - Engineering Street maintenance Total Public Works Parks and recreation - Park maintenance Forestry Recreation Community Center Waterslide / swimming pool Total Parks and Recreation Budgeted Amounts Original Final $8,160, 000 187,200 683,880 1,756,509 707,090 291,148 347, 000 60,000 $8,160,000 187,200 711,880 1,963,295 679, 090 291,148 347, 000 60,000 0 0 18, 000 18, 000 12,210,827 12,417,613 Actual Amounts $8, 211,693 232,076 843,741 2,019,368 686,100 291, 368 374,684 69,480 Variance With Final Budget $51,693 44, 876 131,861 56,073 7,010 220 27,684 9,480 (56,798) (56,798) 20,504 2,504 12,692,216 274,603 116,013 133,263 133,228 35 919,857 889,857 889,526 331 57,420 85,620 85,572 48 214,639 214,639 211,965 2,674 90,000 201,300 201,291 9 5,039 5,039 1,087 3,952 457,176 457,176 448,471 8,705 173,004 173,004 149,526 23,478 2,033,148 2,159,898 2,120,666 39,232 4,559,035 4,459,035 4,456,154 955, 040 1,161, 826 1,161, 826 5,514,075 5,620,861 5,617,980 329,980 329,980 822,433 826,033 1,152,413 1,156, 013 325, 686 825,973 1,151,659 2,881 0 2,881 4,294 60 4, 354 724,952 667,952 665,880 2,072 158,396 158,396 128,935 29,461 643,657 643,657 633,904 9,753 341,964 362,864 362,824 40 234,491 234,491 231,277 3,214 2,103,460 2,067,360 2,022,820 44,540 �► Continued . . . City of Crystal STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL General Fund For the Year Ended December 31, 2013 Continued from previous page . . . Community development - Planning and code enforcement Building inspection Housing inspection Health department Total Community Development Total Expenditures EXCESS (DEFICIENCY) OF REVENUES OVER EXPENDITURES OTHER FINANCING SOURCES (USES) Transfers out NET CHANGE IN FUND BALANCES FUND BALANCES - BEGINNING OF YEAR FUND BALANCES - END OF YEAR Budgeted Amounts Actual Variance With Original Final Amounts Final Budget $208,452 $208,452 $204,172 $4,280 248,954 253,254 253,202 52 146,318 148,418 148,387 31 28,107 28,107 25,064 3,043 631, 831 638,231 630, 825 7,406 11,434,927 11,642,363 11,543,950 98,413 775,900 775,250 1,148,266 (775,900) (842,620) (842,620) 0 (67,370) 305,646 373, 016 373,016 7,397,467 7,397,467 7,397,467 0 $7,397,467 $7,330,097 $7,703,113 $373,016 The notes to the financial statements are an integral part of this statement. 41 City of Crystal STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL EDA - Special Revenue For the Year Ended December 31, 2013 REVENUES Property taxes Intergovernmental Charges for sales and/or services I nterest Net increase (decrease) in fair value of investments Miscellaneous Total Revenues EXPENDITURES Current - Community development Capital outlay Total Expenditures EXCESS (DEFICIENCY) OF REVENUES OVER EXPENDITURES OTHER FINANCING SOURCES (USES) Transfers in NET CHANGE IN FUND BALANCES Budgeted Amounts Actual Original Final Amounts $239,156 $239,156 $295,242 0 0 323,819 368,470 368,470 175,126 30,780 30,780 28,574 Variance With Final Budget $56,086 323,819 (193,344) (2,206) 0 0 (19,449) (19,449) 54,000 54,000 20,903 (33,097) 692,406 692,406 824,215 131,809 371,968 439,368 631,948 (192,580) 225,000 225,000 32,350 192,650 596,968 664,368 664,298 70 95,438 28,038 11,000 11,000 106,438 39,038 159,917 131,879 3,136 (7,864) 163,053 124,015 FUND BALANCES - BEGINNING OF YEAR 3,787,247 3,787,247 3,787,247 0 FUND BALANCES - END OF YEAR $3,893,685 $3,826,285 $3,950,300 $124,015 The notes to the financial statements are an integral part of this statement. 42 This page intentionally left blank 43 City of Crystal STATEMENT OF FUND NET POSITION Proprietary Funds December 31, 2013 ASSETS Current Assets: Cash and cash equivalents Investments Accrued interest Accounts receivable Special assessments receivable Due from other governments Inventory Otherassets Total Current Assets Noncurrent Assets: Equity interest in joint venture Capitai Assets - Land Buildings and structures Improvements other than buildings Machinery and equipment O�ce equipment and furniture SoHware Vehicies and trailers Infrastructure Construction in progress Less: accumulated depreciation Total Capital Assets (net of accumulated depreciation) Total Noncurrent Assets Total Assets LIABILITIES Current Liabilities: Accounts payable Due to other governments Accrued salaries and wages Deposits payable Contracts payable Retainage payable Current portion of accrued compensated absences Total Current Liabilities Noncurrent Liabilities: Noncurrent portion of accrued compensated absences Net OPEB obligation Total Noncurrent Liabilities Total Liabilities NET POSITION Net investment in capital assets Unrestricted Total Net Position The notes to the financial statements are an integral part of this statement. IJ Business-type Activities - Enterprise Funds Sanitary Storm Street Water Sewer Drainage Lights Recycling $195,903 $420,073 $35,789 $59,373 $8,284 1,954,534 4,191,097 357,072 592,372 82,649 5, 770 11,768 1, 654 1, 777 190 525,731 384,603 137,035 41,134 62,280 356,330 0 0 0 0 198,399 5,086 14,986 182 0 26,884 8,281 4,479 0 0 520 520 260 0 0 3,264,071 5,021,428 551,275 694,838 153,403 934,192 0 0 0 0 42,200 0 716,862 0 0 110,924 110,923 7,618 0 0 0 0 170,540 16,861 0 2,220,965 446,773 466,990 0 0 29,287 0 0 0 0 32,888 32,888 32,888 0 0 96,441 141,025 197,777 0 0 3,045,805 6,342,669 11,286,712 627,483 0 0 0 896,784 20,000 0 5,578,510 7,074,278 13,776,171 664,344 0 (2,049,753) (4,536,539) (4,715,366) (135,822) 0 3,528,757 2,537,739 9,060,805 528,522 0 4,462,949 2,537,739 9,060,805 528,522 0 7,727,020 7,559,167 9,612,080 1,223,360 153,403 6,453 4,359 7,349 3,166 0 201,361 2,237 2,393 67,501 0 12,625 12,625 6,313 0 0 800 0 0 0 0 31,233 0 13,039 0 0 0 0 686 0 0 9,745 9,745 4,871 0 0 262,217 28,966 34,651 70,667 0 30,342 30,342 15,172 0 0 12,810 12,810 6,405 0 0 43,152 43,152 21,577 0 0 305,369 72,118 56,228 70,667 0 3,528,757 2,537,739 9,060,805 528,522 0 3,892,894 4,949,310 495,047 624,171 153,403 $7,421,651 $7,487,049 $9,555,852 $1,152,693 $153,403 Governmental Activities - Internal Total Service Funds $719,422 $113,781 7,177, 724 1,135,204 21,159 3,185 1,150,783 0 356,330 0 218,653 0 39,644 0 1,300 0 9, 685, 015 1,252,170 934,192 0 759,062 0 229,465 0 187,401 0 3,134,728 0 29,287 0 98,664 0 435,243 0 21,302,669 0 916,784 0 27,093,303 0 (11,437,480) 0 15,655,823 0 16,590,015 0 26,275,030 1,252,170 21,327 65,261 273,492 8,849 31,563 0 800 0 44,272 0 686 0 24,361 0 396, 501 74,110 75,856 0 32,025 0 107,881 0 504,382 74,110 15,655,823 0 10,114, 825 1,178, 060 $25,770,648 $1,178,060 4'i�. City of Crystal STATEMENT OF REVENUES, EXPENSES AND CHANGES IN FUND NET POSITION Proprietary Funds For the Year Ended December 31, 2013 OPERATING REVENUES Charges for sales and/or services Other charges Miscellaneous Total Operating Revenues OPERATING EXPENSES Personal services Other services Supplies Water purchases Sewage disposal charges Electric service Recycling charges Depreciation Administrative services charged by General Fund Insurance Total Operating Expenses OPERATING INCOME (LOSS) NON-OPERATING REVENUES (EXPENSES) Interest Net increase (decrease) in fair value of investments Gain on disposition of capital assets (Loss) on disposition of capital assets Net income (loss) from joint venture Total Non-Operating Revenues (Expenses) INCOME (LOSS) BEFORE CAPITAL CONTRIBUTIONS AND TRANSFERS CAPITAL CONTRIBUTIONS TRANSFERS OUT CHANGE IN NET POSITION NET POSITION - BEGINNING OF YEAR NET POSITION - END OF YEAR Business-type Activities - Enterprise Funds Sanitary Storm Street Water Sewer Drainage Lights Recycling $2,637,830 $1,939,539 187,423 7,655 0 0 2,825,253 1,947,194 312,384 280,367 42,227 2,081,744 0 0 0 183,573 117,472 0 312,279 85,038 37,728 0 1,270,154 0 0 103,794 117,472 0 $717,005 $169,015 7,882 182 0 0 724,887 169,197 165,527 173,217 34,793 0 0 0 0 292,012 31,610 0 0 78,560 10,593 0 0 124,636 0 30,060 8,930 0 $334,162 0 0 334,162 0 279 0 0 0 0 323,568 0 5,284 0 3,017,767 1,926,465 697,159 252,779 329,131 (192,514) 20,729 27,728 (83,582) 5,031 24,253 49,465 6,951 7,473 (19,824) (40,432) (5,682) (6,109) 17,100 17,100 17,100 0 (74,887) (1,199) (63,213) (56,617) 211,392 0 0 0 158,034 24,934 (44,844) (55,253) (34,480) 45,663 (17,116) 0 0 1,550,646 0 0 (49,594) (34,480) 45,663 1,483,936 (138,835) 71,226 0 (67,609) 797 (651) 0 0 0 146 5,177 0 0 5,177 7,456,131 7,441,386 8,071,916 1,220,302 148,226 $7,421,651 $7,487,049 $9,555,852 $1,152,693 $153,403 Change In Net Position, as Reported Above Amount reported for business-type activities in the Statement of Activities may be different due to: Transfers in of capital assets from governmental activities Governmental activities capital contributions, as reported above Change In Net Position of Business-type activities, per Statement of Activities The notes to the financiai statements are an integral part of this statement. J � Governmental Activities - Internal Total Service Funds $5,797,551 $163,364 203,142 0 0 107,655 6,000,693 271,019 790,190 0 617,461 0 125,341 0 2,081,744 0 1,270,154 0 124,636 0 323,568 0 609,439 0 280,768 0 0 137,621 6,223,301 137,621 (222,608) 133,398 88,939 13,384 (72,698) (10,940) 51,300 0 (195,916) 0 211,392 0 83,017 2,444 (139,591) 135,842 1,621,872 0 (49,594) 0 1,432,687 135,842 24,337,961 1,042,218 $25,770,648 $1,178,060 $1,432,687 302,350 (302,350) $1,432,687 47 City of Crystal STATEMENT OF CASH FLOWS Proprietary Funds For the Year Ended December 31, 2013 CASH FLOWS FROM OPERATING ACTIVITIES Receipts from customers Payments to suppliers Payments to employees Payments for interfund services used Net cash provided by (used for) operating activities CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES Transfers to other funds CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES Purchases of capital assets Proceeds from sale of capital assets Net cash provided by (used for) capital and related financing activities CASH FLOWS FROM INVESTING ACTIVITIES Proceeds from sales and maturities of investments Purchase of investments Interest received Net cash provided by (used for) investing activities NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS CASH AND CASH EQUIVALENTS - BEGINNING OF YEAR CASH AND CASH EQUIVALENTS - END OF YEAR RECONCILIATION OF OPERATING INCOME (LOSS) TO NET CASH PROVIDED BY (USED FOR) OPERATING ACTIVITIES Operating income (loss) Adjustments to reconcile operating income (loss) to net cash provided by (used for) operating activities: Depreciation Changes in assets and iiabilities - (Increase) decrease in accounts receivable (Increase) decrease in special assessments receivable (Increase) decrease in due from other governments (Increase) decrease in inventory (Increase) decrease in other assets Increase (decrease) in accounts payable Increase (decrease) in due to other governments Increase (decrease) in accrued salaries and wages Increase (decrease) in contracts payabie Increase (decrease) in retainage payable Increase (decrease) in net OPEB obiigation Net cash provided by (used for) operating activities NONCASH INVESTING, CAPITAL AND FINANCING ACTIVITIES Net increase (decrease) in fair value of investments Net income (loss) from joint venture Contribution of capital assets from government Contribution of capital assets from other government The notes to the financial statements are an integral part of this statement. ►�� Business-type Activities - Enterprise Funds Sanitary Storm Street Water Sewer Drainage Lights Recycling $2,709,769 $1,947,543 $1,112,248 $161,503 $333,660 (2,321,556) (1,394,759) (290,691) (154,629) (323,870) (310,210) (310,105) (164,440) 0 0 (117,472) (117,472) (31,610) (8,930) (5,284) (39,469) 125,207 625,507 (2,056) 4,506 0 0 (49,594) 0 0 0 (24,099) (861,724) (32,350) 0 17,100 17,100 17,100 0 0 17,100 (6,999) (844,624) (32,350) 0 1,141,271 2,297,242 452,403 372,080 43,496 (1,083,921) (2,324,245) (198,020) (328,510) (45,834) 28,898 55,652 10,014 8,488 855 86,248 28,649 264,397 52,058 (1,483) 63,879 146,857 (4,314) 17,652 3,023 732,024 273,216 40,103 41,721 5,261 $195,903 $420,073 $35,789 $59,373 $8,284 ($192,514) $20,729 $27,728 ($83,582) $5,031 183,573 103,794 292,012 30,060 0 7,065 5,435 115,776 (7,886) (502) 50,284 0 0 0 0 (172,833) (5,086) 271,585 192 0 s,oas �z,o2s� (848) o 0 0 0 34,000 0 0 (4,027) 1,438 (4,318) (8,341) (23) 50,530 (1,251) 649 67,501 0 (151) (151) (76) 0 0 31,233 0 (106,556) 0 0 0 0 (5,608) 0 0 2,325 2,325 1,163 0 0 ($39,469) $125,207 $625,507 ($2,056) $4,506 ($19,824) ($40,432) ($5,682) ($6,109) ($651) $211,392 $270,000 $32,350 $1,280,646 $38,876 Governmenta� Activities - Internal Totai Service Funds $6,264,723 $271,019 (4,485,505) (291,309) (784,755) 0 (280,768) 0 713,695 (20,290) (49,594) 0 (918,173) 0 51,300 0 (866,873) 0 4,306,492 671,491 (3,980,530) (629,547) 103,907 14,924 429,869 56,868 227,097 36,578 492,325 77,203 $719,422 $113,781 ($222,608) $133,398 609,439 0 119,888 50,284 93,858 2,172 34, 000 (15,271) 117,429 (378) (75,323) (5,608) 5,813 0 0 0 0 0 (136,873) (16,815) 0 0 0 0 $713,695 ($20,290) ($72,698) $10,940 $211, 392 $302, 350 $1,319,522 �■ � City of Crystal STATEMENT OF FIDUCIARY NET POSITION Fiduciary Funds December 31, 2013 ASSETS Cash and cash equivalents Investments Accrued interest Due from other governments Total Assets LIABILITIES Accounts payable Due to other governments Due to Hennepin Recycling Group Total Liabilities Hennepin Recycling Group Agency Fund $186,998 1,865,698 5, 093 678 $2,058,467 $50,160 84,070 1,924,237 $2,058,467 The notes to the financial statements are an integral part of this statement. 5� City of Crystal NOTES TO THE FINANCIAL STATEMENTS For the Year Ended December 31, 2013 Note 1— Summarv of Siqnificant Accountinq Policies A. Reporting Entity The City of Crystal (the City) operates under the Home Rule Charter form of government in accordance with applicable State of Minnesota statutes. The charter prescribes a Manager-Council form of organization. The governing body consists of a seven-member City Council elected at large to serve four-year staggered terms. The accompanying financial statements present the activities of the government. Certain organizations have been defined in accordance with GASB Statement No. 14 and are presented in this report as follows: 1. Blended Component Units Blended component units, although legally separate entities, are, in substance, part of the government's operations. The City has one blended component unit which is reported as if it were part of the City. Although the Economic Development Authority (EDA) in and for the City is legally separate from the City, the EDA is reported as if it were part of the primary government because its governing board is comprised of the City council members. The EDA was created by the City to provide housing and redevelopment assistance through the administration of various programs. It levies taxes to provide funds for redevelopment in the City. The EDA is reported as a special revenue fund. 2. Joint Ventures A joint venture is a legal entity or other organization that results from a contractual agreement and that is owned, operated, or governed by two or more participants as a separate and specific activity subject to joint control. The participants retain either an ongoing financial interest or an ongoing financial responsibility. The City participates in two joint ventures — the Golden Valley, Crystal, New Hope Joint Water Commission and the West Metro Fire-Rescue District. Descriptions and other financial information for these organizations are included in the note entitled Joint Ventures and Jointly Governed Organizations. 3. Jointly Governed Organizations The City has several agreements with governmental and other entities that provide reduced costs, better service and additional benefits to participants. The various programs in which the City participates in are described in the note entitled Joint Ventures and Jointly Governed Organizations. 51 City of Crystal NOTES TO THE FINANCIAL STATEMENTS For the Year Ended December 31, 2013 Note 1— Summary of Siqnificant Accountinq Policies (Continued) B. Government-wide and Fund Financial Statements The government-wide financial statements (i.e., the Statement of Net Position and the Statement of Activities) report information on all of the non-fiduciary activities of the primary government and its component units. For the most part, the effect of interfund activity has been removed from these statements. Governmental activities, which normally are supported by taxes and intergovernmental revenues, are reported separately from business-type activities, which rely to a significant extent on fees and charges for support. The Statement of Activities demonstrates the degree to which the direct expenses of a given function or segment is offset by program revenues. Direct expenses are those that are clearly identifiable with a specific function or segment. The City does not allocate indirect expenses. Program revenues include 1) charges to customers or applicants who purchase, use, or directly benefit from goods, services, or privileges provided by a given function or segment, and 2) grants and contributions that are restricted to meeting the operational or capital requirements of a particular function or segment. Taxes and other items not properly included among program revenues are reported instead as general revenues. Separate financial statements are provided for governmental funds, proprietary funds and fiduciary funds, even though the latter are excluded from the government- wide financial statements. Major individual governmental funds and major individual enterprise funds are reported as separate columns in the fund financial statements. C. Measurement Focus, Basis of Accounting and Financial Statement Presentation The government-wide financial statements are reported using the economic resources measurement focus and the accrual basis of accounting, as are the proprietary fund financial statements. Revenues are recorded when earned and expenses are recorded when a liability is incurred, regardless of the timing of related cash flows. Property taxes are recognized as revenues in the year for which they are levied. Grants and similar items are recognized as revenue as soon as all eligibility requirements imposed by the provider have been met. The City's fiduciary funds include an agency fund. Agency funds are custodial in nature (assets equal liabilities) and do not involve measurement of results of operations. Governmental fund financial statements are reported using the current financial resources measurement focus and the modified accrual basis of accounting. Revenues are recognized as soon as they are both measurable and available. Revenues are considered to be available when they are collectible within the current period or soon enough thereafter to pay liabilities of the current period. For this purpose, the government considers revenues to be available if they are collected within 60 days of the end of the current fiscal period. 52 City of Crystal NOTES TO THE FINANCIAL STATEMENTS For the Year Ended December 31, 2013 Note 1— Summarv of Siqnificant Accountinq Policies (Continued) C. Measurement Focus, Basis of Accounting and Financial Statement Presentation (Continued) Major revenues that are susceptible to accrual include property taxes, special assessments, intergovernmental revenues, charges for services, and investment earnings. Major revenues that are not susceptible to accrual include licenses, permits, and inspection fees, and miscellaneous revenues. Such revenues are recorded only as received because they are not measurable until collected. Expenditures generally are recorded when a liability is incurred, as under accrual accounting. However, debt service expenditures, as well as expenditures related to compensated absences and claims and judgments, are recorded only when payment is due. The government reports the following major governmental funds: • General Fund — This is the government's primary operating fund. It accounts for all financial resources of the general government, except those required to be accounted for in another fund. • EDA — Special Revenue — The EDA fund, a blended component unit, is used to account for the City's housing and redevelopment activities. Significant revenue sources include property taxes, charges for sales, and transfers from other funds. • Debt Service — This fund accounts for resources accumulated, and payments made, for principal and interest on long-term general obligation debt and tax increment revenue notes of governmental funds. • Capital Improvement Revolving — Capital Projects — This fund is used to account for the majority of the City's capital acquisitions and improvements, as they relate to operations of the City. • Street Reconstruction — Capital Projects — This fund is used to account for ongoing street reconstruction projects in the City. A total of sixteen reconstruction phases are planned. • • Major Building Replacement — Capital Projects — This fund is used to account for major renovation and/or construction of City buildings. 53 City of Crystal NOTES TO THE FINANCIAL STATEMENTS For the Year Ended December 31, 2013 Note 1— Summarv of Siqnificant Accountinq Policies (Continued) C. Measurement Focus, Basis of Accounting and Financial Statement Presentation (Continued) The government reports the following major proprietary funds: Water — This fund accounts for the provision of water to residents and customers of the City. The cities of Crystal, Golden Valley, and New Hope established a joint water commission in 1963 to provide for the creation and maintenance of a joint water supply, storage, and distribution system through which water purchased from the City of Minneapolis can be supplied to the population of the member cities. • Sanitary Sewer — This fund accounts for the collection and pumping of sanitary sewage through a system of sewer lines and lift stations. Sewage is treated by Metropolitan Council Environmental Services (MCES). • Storm Drainage — This fund accounts for the operation, maintenance, and improvement of the City's storm drainage system. • Street Lights — This fund accounts for the operation, maintenance, and improvement of the City's street lights. • Recycling — This fund accounts residents and customers of the Hennepin Recycling Group (HRG). for the provision of recycling services to City. Recycling services are provided by Additionally, the government reports the following fund types: • Internal Service Funds are used to account, on a cost-reimbursement basis, for the financing of uninsured risks of loss (self-insurance), as well as post employment health benefits for eligible retirees. The Agency Fund accounts for the collection, recycling, and disposal of solid waste activities of Hennepin Recycling Group (HRG), a jointly-governed organization in which the City participates. As a general rule, the effect of interfund activity has been eliminated from the government-wide financial statements. An exception to this general rule is charges between the government's enterprise funds and other functions of the government. Elimination of these charges would distort the direct costs and program revenues reported for the various functions concerned. Amounts reported as program revenues include 1) charges to customers or applicants for goods, services, or privileges provided, 2) operating grants and contributions, and 3) capital grants and contributions, including special assessments. Internally dedicated resources are reported as general revenues rather than as program revenues. Likewise, general revenues include all taxes. 54 City of Crystal NOTES TO THE FINANCIAL STATEMENTS For the Year Ended December 31, 2013 Note 1— Summarv of Siqnificant Accountinq Policies (Continued) C. Measurement Focus, Basis of Accounting and Financial Statement Presentation (Continued) Proprietary funds distinguish operating revenues and expenses from non-operating items. Operating revenues and expenses generally result from providing services and producing and delivering goods in connection with a proprietary fund's principal ongoing operations. The principal operating revenues of the enterprise funds and of the government's internal service funds are charges to customers for sales and services. Operating expenses for enterprise funds and internal service funds include the cost of sales and services, administrative expenses and depreciation on capital assets. All revenues and expenses not meeting this definition are reported as non-operating revenues and expenses. When both restricted government's policy to they are needed. and unrestricted resources are available for use, it is the use restricted resources first, then unrestricted resources as D. Assets, Liabilities, Deferred Inflows Of Resources, and Net Position/Fund Balance 1. Deposits and Investments The government's cash and cash equivalents are considered to be change funds, demand deposits, and short-term investments with original maturities of three months or less from the date of acquisition. Cash balances from all funds are combined and invested to the extent available in authorized investments (Refer to note entitled Deposits and Investments). Earnings from such investments are allocated to the respective funds on the basis of applicable cash balance participation by each fund. Investments are reported at fair value, based upon quoted market prices at the reporting date. The City invests in the Minnesota Municipal Money Market Fund, an external investment pool not registered with the Securities Exchange Commission (SEC), but that follows the same regulatory rules of the SEC under rule 2a7. The fair value of the position in the pool is the same as the value of the pool shares. 2. Accounts Receivable All utility and miscellaneous accounts receivable are shown at a gross amount. Since most uncollectible accounts are able to be certified to Hennepin County for collection with real estate taxes, no allowance for uncollectible accounts has been provided. 55 City of Crystal NOTES TO THE FINANCIAL STATEMENTS For the Year Ended December 31, 2013 Note 1— Summary of Siqnificant Accountinq Policies (Continued) D. Assets, Liabilities, Deferred Inflows Of Resources, and Net Position/Fund Balance (Continued) 3. Delinquent Taxes Receivable Property tax levies are set by the City Council in December of each year and are certified to Hennepin County for collection in the following year. In Minnesota, counties act as collection agents for all property taxes. The County spreads all levies over taxable property. Such taxes become a lien on January 1. Revenues are accrued and recognized in the year collectible, net of delinquencies. Real property taxes may be paid by taxpayers in two equal installments by May 15 and October 15 of each year. Personal property taxes may be paid by February 28 and June 30 of each year. The County provides tax settlements to cities and other taxing districts three times a year — in July, December and January of the following year. In the fund financial statements, taxes that remain unpaid at December 31 are classified as delinquent taxes receivable. They are fully offset by a deferred inflow of resources because they are not known to be available to finance current exp�nditures. 4. �pecial Assessments Receivable In accordance with state statutes, special assessments are levied against benefited pro�erties for the assessable costs of improvement projects. The City normally ado�ts an assessment roll at the time an individual project is started. Assessments are �ollectible over a term of years generally consistent with the term of years of the related bond issue. The County handles collection of annual installments, including interest, in the same manner as property taxes. Property owners are allowed to prepay total future installments without interest or prepayment penalties. In the fund financial statements, special assessments receivable include the following components, and are offset by a deferred inflow of resources: • Delinquent — amounts billed to property owners but not yet paid • Deferred — installments that will be billed to property owners in future years. 5. Inventory and Prepaid Items Inventories of (FIFO) method where costs purchased. the enterprise funds are valued at cost using the first-in/first-out The cost of inventories is recorded using the consumption method, �re recorded as expenses when consumed rather than when � City of Crystal NOTES TO THE FINANCIAL STATEMENTS For the Year Ended December 31, 2013 Note 1— Summary of Siqnificant Accountinq Policies (Continued) D. Assets, Liabilities, Deferred Inflows Of Resources, and Net Position/Fund Balance (Continued) 5. Inventory and Prepaid Items (Continued) Prepaid items in the government-wide and fund financial statements reflect costs paid to vendors that are applicable to future accounting periods. The cost of prepaid items is recorded using the consumption method, where costs are recorded as expenditures when consumed rather than when purchased. 6. Land Held for Resale The Crystal EDA acquires properties for redevelopment purposes. Land held for resale is reported as an asset at its net realizable value in the EDA Special Revenue Fund. Any costs incurred that are above a property's net realizable value are reported as expenditures of the current period. 7. Capital Assets Capital assets, both tangible and intangible, which include land, buildings and structures, improvements other than buildings, machinery and equipment, office equipment and furniture, software, vehicles and trailers, and infrastructure (utility systems, traffic and transportation systems and park systems) are reported in the applicable governmental or business-type activities columns in the government-wide financial statements. With the initial capitalization of infrastructure assets of governmental activities, as required by the implementation of GASB Statement No. 34, the City chose to include all such items, regardless of acquisition date. Historical costs were available from an independent, city-wide asset valuation that had been completed in 1992, as well as from contractor invoices for street reconstruction projects completed subsequent to 1992. Tangible and intangible capital assets are defined by the City as assets with an initial, individual cost of more than $5,000 and an estimated useful life in excess of one year. Such assets are recorded at historical cost or estimated historical cost if purchased or constructed. Donated capital assets are recorded at estimated fair market value at the date of donation. The costs of normal maintenance and repairs that do not add to the value of the asset or materially extend assets lives are not capitalized. Interest is not being capitalized on construction projects. Tangible and intangible capital assets of the City are depreciated using the straight- line, mid-month convention. In instances in which estimated useful lives have been revised to more closely approximate historical experience, depreciation is calculated by taking the net remaining value over the remaining life (prospectively). Estimated useful lives are as follows: 57 City of Crystal NOTES TO THE FINANCIAL STATEMENTS For the Year Ended December 31, 2013 Note 1— Summary of Siqnificant Accountinq Policies (Continued) D. Assets, Liabilities, Deferred Inflows Of Resources, and Net Position/Fund Balance (Continued) 7. Capital Assets (Continued) Classification Buildings and structures Improvements other than buildings Machinery and equipment Office equipment and furniture Software Vehicles and trailers Infrastructure: Utility systems Traffic and transportation systems Park systems 8. Compensated Absences Payable Years 5-50 5-30 5-30 5-20 5 3-12 25-75 10-30 15-20 The City compensates all employees for unused vacation hours upon termination. Eligible employees are compensated for accrued compensatory hours upon termination. Employees terminating their employment with the City after ten or more continuous years of service are compensated for 40% of their accumulated sick leave hours at their current base hourly rate of pay. The maximum amount of accrued sick leave hours that may be converted is 960. Accumulated or vested vacation, compensatory, and sick time estimated to be payable as termination pay is accrued as incurred in the government-wide and proprietary fund financial statements. A liability for these amounts is reported in governmental funds only if they have matured, for example, as a result of employee resignations and retirements. 9. Long-Term Obligations In the government-wide financial statements and in the proprietary fund types in fund financial statements, long-term debt and other long-term obligations are reported as liabilities in the applicable governmental activities, business-type activities, or proprietary fund type statement of net position. Bond premiums and discounts are deferred and amortized over the life of the bonds using the straight- line method. Bonds payable are reported net of the applicable bond premium or discount. Debt issuance costs are recognized as expense in the period incurred. :. City of Crystal NOTES TO THE FINANCIAL STATEMENTS For the Year Ended December 31, 2013 Note 1— Summarv of Siqnificant Accountinq Policies (Continued) D. Assets, Liabilities, Deferred Inflows Of Resources, and Net Position/Fund Balance (Continued) 9. Long-Term Obligations (Continued) In the fund financial statements, governmental fund types recognize bond premiums, discounts, and issuance costs during the current period. The face amount of debt issued is reported as other financing sources. Premiums received on debt issuances are reported as other financing sources while discounts on debt issuances are reported as other financing uses. Issuance costs, whether or not withheld from the actual debt proceeds received, are reported as debt service expenditures. 10. Deferred Inflows Of Resources In addition to liabilities, the statement of financial position will sometimes report a separate section for deferred inflows of resources. This separate financial statement element represents an acquisition of net position that applies to a future period(s) and so will not be recognized as an inflow of resources (revenue) until that time. The City has certain items which arise only under the modified accrual basis of accounting that qualify for reporting in this category. Accordingly, these items are reported only in the governmental funds balance sheet as unavailable revenue. The governmental funds report unavailable revenues from four sources: property taxes, special assessments, notes receivable, and contract for deed receivable. These amounts are deferred and recognized as an inflow of resources in the period that the amounts become available. The City also has certain items which arise under the modified accrual and full accrual basis of accounting that qualify for reporting in this category. Accordingly, these items are reported in the Statement of Net Position and governmental funds balance sheet as unavailable revenue. The Statement of Net Position and governmental funds report unavailable revenues from two sources: licenses paid in advance and state aid. These amounts are deferred and recognized as an inflow of resources in the period in which the time requirements have been met. 11. Fund Balance Classifications In the fund financial statements, governmental funds report fund balance in classifications that disclose constraints for which amounts in those funds can be spent. Classifications of fund balance that will be used are as follows: • Nonspendable — These are resources that cannot be spent because they are either not readily convertible to cash or are legally or contractually required to be maintained intact. Examples include money held in escrow, prepaid amounts, land held for resale, and long-term loans or notes receivable. 59 City of Crystal NOTES TO THE FINANCIAL STATEMENTS For the Year Ended December 31, 2013 Note 1— Summarv of Siqnificant Accountinq Policies (Continued) D. Assets, Liabilities, Deferred Inflows Of Resources, and Net Position/Fund Balance (Continued) 11. Fund Balance Classifications (Continued) • Restricted — These are resources whose spending is constrained externally by creditors or by laws and regulations of another government. Examples include grants, intergovernmental revenues, and resources in debt service funds that include a legally enforceable requirement that those resources be spent only for specific purposes. • Committed — These are resources that can only be used for specific purposes established by the City Council. Establishment of these specific purposes must be done by a resolution adopted by the City Council and may only be changed or removed by a resolution adopted by the City Council. • Assigned — These are resources that the City intends to be used for specific purposes, but are neither restricted nor committed. This intent may be expressed by a motion of the City Council or by the City Manager, upon recommendation of the Finance Director. • Unassigned — These are resources that are available for any purpose of the fund. Amounts identified as cash flow resources are classified as unassigned. Only the General Fund may have a positive unassigned fund balance. A deficit fund balance in any fund must be classified as an unassigned fund balance. When multiple classifications of resources are available for use, it is the City's policy to first use restricted resources if permitted, then committed, assigned, or unassigned resources. It is the City's policy to retain in fund balance resources that have the lowest level of constraints possible. Note 2— Stewardship, Compliance and Accountabilitv A. Budgets and Budgetary Accounting The City follows these procedures in establishing the budgetary data reflected in the financial statements: Prior to each September 15, the City Manager submits to the City Council proposed operating budgets for the fiscal year commencing the following January. The operating budgets include proposed expenditures and the means of financing them. In November, the County mails individual property tax notices to residents showing the taxes that would result from the proposed budgets of all taxing units within the City. .r City of Crystal NOTES TO THE FINANCIAL STATEMENTS For the Year Ended December 31, 2013 Note 2— Stewardship, Compliance and Accountability (Continued) A. Budgets and Budgetary Accounting (Continued) • Prior to proposed budgets being approved, public hearings are conducted to obtain taxpayer comments. • In December, final budgets are legally enacted by the City Council through passage of a resolution. • During the budget year, the City Council must authorize any transfer of budgeted am�unts between departments within the General Fund. City management may authorize a transfer of budgeted amounts within individual departments without obt�ining approval from the City Council. • Supplemental appropriations during the year may only be made by the City Council. These amounts must be financed by funds from the contingency res�erve set up in the General Fund or by additional revenues. • All �udget amounts lapse at the end of the year to the extent they have not been expended. • Budgets are adopted on a basis consistent with U.S. generalfy accepted accounting principles. Annual appropriated budgets are adopted for all governmental funds. The budgets are adopted on a modified accrual basis. • BucJgets are adopted on an accrual basis for all enterprise and internal service fun�is. • Budgetary control is maintained at the department level for the General Fund anc! at the fund level for all other funds that adopt annual budgets. City ma�agement must request approval from the - City Council before exceeding budget at the applicable level. B. Exces� of Expenditures over Budget Expen�itures exceeded budget in the CDBG Fund by $3,562. The over-expenditure was fully offset by revenue. 61 City of Crystal NOTES TO TME FINANCIAL STATEMENTS For the Year Ended December 31, 2013 Note 3— Deposits and Investments A. Deposits In accordance with Minnesota Statutes, the City maintains deposits at national or state banks within the state, as authorized by the City Council. The following is considered to be the most significant risk associated with deposits: Custodial credit risk — In the case of deposits, this is the risk that in the event of a bank failure, the deposits may be lost. Minnesota Statutes require that all City deposits be protected by federal deposit insurance, corporate surety bond, or collateral. The market value of collateral pledged must equal 110% of the deposits not covered by federal deposit insurance or corporate surety bonds. Authorized collateral includes treasury bills, notes, and bonds; issues of U.S. government agencies; general obligations rate�i "A" or better; revenue obligations rated "AA" or better; irrevocable standard lett�;rs of credit issued by the Federal Home Loan Bank; and certificates of dep�sit. Minnesota Statutes require that securities pledged as collateral be held in safekeeping in a restricted account at the Federal Reserve Bank or in an acc�unt at a trust department of a commercial bank or other financial institution that is not owned or controlled by the financial institution furnishing the collateral. During the year, all deposits and investments were collateralized in accordance witf� these provisions. The City has no additional deposit policies addressing custodial credit risk for deposits. At year-end, the City's carrying amount of deposits was $469,182 and the bank balanc� was $631,256. All of the bank balance was covered by FDIC insurance or collateralized by pledged collateral held in the City's name at the Federal Reserve Bank. The City's policy is to comply with Minnesota Statutes, which require that all deposits be protected by federal deposit insurance, corporate surety bond, or collateral. The market value of collateral pledged must equal 110% of the deposits not covered by federal deposit insurance or corporate surety bonds. Minnesota Statutes require that securities pledged as collateral be held in safekeeping by the City Treasurer or in a financial institution other than that furnishing the collateral. B. Investments The City has a formal investment policy to establish guidelines for the prudent investment of City funds. Funds of the City will be invested in compliance with the provisions of Minnesota Statutes Chapter 118A. Allowable investments include the following: Bonds, notes, bills, mortgages, and other securities that are direct obligations or are guaranteed or insured issues of the United States, its agencies, instrumentalities, or organizations created by Congress. 62 City of Crystal NOTES TO THE FINANCIAL STATEMENTS For the Year Ended December 31, 2013 Note 3— Deposits and Investments (Continued) B. Investments (Continued) • State and local securities, including: — any security that is a general obligation of any state or local government with taxing powers and is rated "A" or better by a national bond rating agency — any security that is a revenue obligation of any state or local government with taxing powers and is rated "AA" or better by a national bond rating agency • Commercial paper issued by United States corporations or their Canadian subsidiaries that is rated in the highest quality category by at least two nationally recognized rating agencies and that matures in 270 days or less. • Time deposits that are fully insured by the Federal Depository Insurance Corporation. • Bankers' acceptances of United States banks. • Money market mutual funds. • Government investment pools, including the Minnesota Municipal Money Market Fund. As of December 31, 2013, the City had the following investments and maturities: Investment Maturities (in Years) 2016 through 2018 through Investment Type Fair Value 2014 2015 2017 2019 Certificates of Deposit $28,914,742 $12,142,370 $8,692,161 $7,352,603 $727,608 Federal Farm Credit Notes 995,682 0 0 995,682 0 Federal Home Loan Mtge. Corp. 1,091,441 0 0 1,091,441 0 Federal Natl. MortgageAssoc. 2,678,590 0 0 2,489,188 189,402 State & Local Govt. Bonds 18,311,718 5,956,661 4,257,554 6,544,501 1,553,002 Subtotal 51,992,173 18,099,031 12,949,715 18,473,415 2,470,012 Money Market Accounts * 3,933,313 3,933,313 N/A N/A N/A Total $55,925,486 $22,032,344 $12,949,715 $18,473,415 $2,470,012 * Includes $1,895,442 invested in the Minnesota Municipal Money Market Fund, which is regulated by Minnesota Statutes and the Board of Directors of the League of Minnesota Cities and is an external investment pool not registered with the Securities Exchange Commission (SEC), that follows the same regulatory rules of the SEC under rule 2a7. The fair value of the position in the pool is the same as the value of the pool shares. 63 City of Crystal NOTES TO THE FINANCIAL STATEMENTS For the Year Ended December 31, 2013 Note 3— Deposits and Investments (Continued) B. Investments (Continued) Interest Rate Risk - This is the risk of potential variability in the fair value of fixed rate investments resulting from changes in interest rates (the longer the period for which an interest rate is fixed, the greater the risk). The City's investment policy states that "the City will minimize Interest Rate Risk by structuring the investment portfolio so that securities mature to meet cash requirements for ongoing operations." Credit Risk — This is the risk that an issuer or other counterparty to an investment will not fulfill its obligations. This risk is addressed by confining investments to those securities specifically authorized by state statute and the City's investment policy. As of December 31, 2013, the City's investments in U.S. Agencies were rated AA+ by Standard and Poor's and Aaa by Moody's Investors Service. The City's investments in G.O. state and local government bonds were rated A2 or better by Moody's and A or better by Standard and Poor's. The City's investments in state and local government revenue bonds were rated Aa3 or better by Moody's and AA- or better by Standard and Poor's. The City's investments in certificates of deposit were covered by FDIC insurance. Custodial Credit Risk — For investments, this is the risk that in the event of a failure of the counterparty to an investment transaction (typically a broker-dealer) the City would not be able to recover the value of its investments that are in the possession of an outside party. The City's investment policy states that the bank or broker is required to have insurance through FDIC and SIPC or transfer the security to a custodian bank. Concentration of Credit Risk — This is the risk associated with investing a significant portion of the City's investments (considered to be 5% or more) in the securities of a single issuer. The City's investment policy does not limit investments in any one issuer. At December 31, 2013, no investment exceeded 5% of the City's total investments. , �� City of Crystal NOTES TO THE FINANCIAL STATEMENTS For the Year Ended December 31, 2013 Note 3— Deposits and Investments (Continued) B. Investments (Continued) The following summary reconciles cash and investments to the financial statements: Cash on hand Carrying amount of deposits Carrying amount of cash-equivalent investments Carrying amount of investments Total Cash, Cash Equivalents and Investments Per Statement of Net Position - Cash and cash equivalents Investments Per Statement of Changes in Assets and Liabilities - Agency Fund: Hennepin Recycling Group - Cash and cash equivalents I nvestments Note 4 — Interfund Transfers Transfers Out General Non-major Governmental Funds Storm Drainage Total $1,878 469,182 735, 000 55,190,486 $56,396,546 $4,952,375 49,391,475 186, 998 1,865,698 $56,396,546 Transfers In Capital Non-major Improvement Governmental EDA Revolving Funds Total $0 $645,520 $197,100 $842,620 3,136 0 0 3,136 0 49,594 0 49,594 $3,136 _ $695 114 $197,100 $895 350 Transfers are used to 1) move revenues from the fund that statute or budget requires to collect them to the fund that statute or budget requires to expend them, 2) move receipts restricted to debt service from the funds collecting the receipts to the Debt Service Fund as debt service payments become due, and 3) use unrestricted revenues collected in the General Fund to finance various programs accounted for in other funds, in accordance with budgetary authorizations. 65 City of Crystal NOTES TO THE FINANCIAL STATEMENTS For the Year Ended December 31, 2013 Note 5 — Capital Assets Capital asset activity for the year ended December 31, 2013 was as follows: Governmental Activities Capital Assets Not Being Depreciated: Land Construction in progress Total Capital Assets Not Being Depreciated Capital Assets Being Depreciated: Buildings and structures Improvements other than buildings Machinery and equipment Office equipment and furniture Software Vehicles and trailers Infrastructure - Traffic and transportation systems Park systems Total Capital Assets Being Depreciated Less Accumulated Depreciation for: Buildings and structures Improvements other than buildings Machinery and equipment Office equipment and furniture Software Vehicles and trailers Infrastructure - Traffic and transportation systems Park systems Total Accumulated Depreciation Total Capital Assets Being Depreciated, Net Governmental Activities Capital Assets, Net Beginning Balance Increases Ending Decreases Balance $3,876,867 $0 $0 $3,876,867 4,232,197 3,734,844 (4,017,409) 3,949,632 8,109,064 3,734,844 (4,017,409) 7,826,499 10,547,425 5,278,340 3,125,254 596, 359 111,793 2,180, 794 115,650 38,350 307, 908 0 0 360,136 0 0 (131,496) 0 (62, 005) (148,495) 10,663,075 5,316,690 3,301,666 596, 359 49, 788 2,392,435 45,286,310 7,392,809 (1,666,801) 51,012,318 191,538 0 0 191,538 67,317,813 8,214,853 (2,008,797) 73,523,869 (6,179,141) (2,485,095) (2,086,397) (389,491) (71,721) (1, 307, 792) (265, 541) (180, 913) (197,262) (48,427) (3,632) (244,183) 0 0 125,589 0 26, 869 134,884 (6,444,682) (2,666,008) (2,158, 070) (437,918) (48,484) (1,417,091) (23,045,400) (2,323,194) 1,666,801 (23,701,793) (75,907) (11,391) 0 (87,298) (35,640,944) (3,274,543) 1,954,143 (36,961,344) 31,676,869 4,940,310 (54,654) 36,562,525 $39,785,933 $8,675,154 ($4,072,063) $44,389,024 ■■ City of Crystal NOTES TO THE FINANCIAL STATEMENTS For the Year Ended December 31, 2013 Note 5 — Capital Assets (Continued) Beginning Balance Increases Business-type Activities Ending Decreases Balance Capital Assets Not Being Depreciated: Land $759,062 $0 $0 $759,062 Improvements other than buildings 170,540 0 0 170,540 Construction in progress 1,288,485 916,784 (1,288,485) 916,784 Total Capital Assets Not Being Depreciated Capital Assets Being Depreciated: Buildings and structures Improvements other than buildings Machinery and equipment Office equipment and furniture Software Vehicles and trailers Infrastructure - Utility systems Traffic and transportation systems Total Capital Assets Being Depreciated Less Accumulated Depreciation for: Buildings and structures Improvements other than buildings Machinery and equipment Office equipment and furniture Software Vehicles and trailers Infrastructure - Utility systems Traffic and transportation systems Total Accumulated Depreciation Total Capital Assets Being Depreciated, Net Business-type Activities Capital Assets, Net 2,218,087 916,784 (1,288,485) 1,846,386 229,465 0 0 229,465 16, 861 0 0 16, 861 3,026,536 206,516 (98,324) 3,134,728 29,287 0 0 29,287 98,664 0 0 98,664 427,133 25,774 (17,664) 435,243 18,378,564 2,343,946 (47,324) 20,675,186 481,611 145,872 0 627,483 22,688,121 2,722,108 (163,312) 25,246,917 (162,292) (7,816) 0 (170,108) (5,550) (843) 0 (6,393) (887,837) (167,095) 97,124 (957,808) (17,572) (5,858) 0 (23,430) (98,664) 0 0 (98,664) (345,550) (28,413) 17,664 (356,299) (9,367,399) (370,196) 42,246 (9,695,349) (100,211) (29,218) 0 (129,429) (10,985,075) (609,439) 157,034 (11,437,480) 11,703,046 2,112,669 (6,278) 13,809,437 $13,921,133 $3,029,453 ($1,294,763) $15,655,823 67 City of Crystal NOTES TO THE FINANCIAL STATEMENTS For the Year Ended December 31, 2013 Note 5 — Capital Assets (Continued) Depreciati�n expense was charged to governmental functions as follows: Governmental Activities - General government Puk�lic safety Public works Parks and recreation Cornmunity development �Total Depreciation Expense - Governmental Activities Busine ys-type Activities - W�ter Sanitary sewer Starm drainage Str�et lights "Total Depreciation Expense - Business-type Activities .: $190,093 165, 729 2,487,305 429,222 2,194 $3,274,543 $183,573 103, 794 292,012 30,060 $609,439 City of Crystal NOTES TO THE FINANCIAL STATEMENTS For the Year Ended December 31, 2013 Note 6 — Lonq-Term Debt The government issues general obligation (G.O.) bonds (including certificates of indebtedness), tax increment bonds, and special assessment bonds to provide funding for the acquisition of capital assets, tax increment projects, and street improvements, respectively. G.O. bonds are direct obligations and pledge the full faith and credit of the government. Details of long-term debt currently outstanding are as follows: Purpose Governmental activities - G.O. aquatic center bonds - 2005B G.O. street refunding and reconstruction bonds-20106 G.O. street reconstruction bonds - 2013B Governmental activities - special assessments - Improvement & refunding bonds - 2004A Improvement bonds - 2005A Improvement bonds - 2006A Improvement bonds - 2008A Improvement bonds - 2009A Improvement bonds - 2011A Improvement bonds - 2012A Improvement bonds - 2013A Governmental activities - note payable - LOGIS - public safety application software Total Original Maturity Interest Issue Dates Rates Amount 2006 - 2020 3.50 - 4.00% 2012 - 2014 0% 2014 0% 2005 - 2020 2007 - 2021 2008 - 2022 2010 - 2024 2011 - 2030 2013 - 2027 2014 - 2028 2015 - 2029 2011-2013 4.50 - 4.75% 3.50 - 4.00% 3.75 - 4.20% 3.50 - 4.35% 2.00 - 4.50% 0.50 - 3.55% 1.50 - 2.13% 2.00 - 3.50% Amount Outstanding $2,395,000 $1,260,000 1,587,678 395,000 4,377,678 2,045,000 1,440,000 1,855,000 2,190, 000 3,360,000 1,705,000 2,635,000 3,235,000 18,465,000 86,593 395,000 1,741,593 700, 000 720,000 1,020,000 1,495, 000 2,770,000 1,560,000 2,635,000 3,235,000 14,135, 000 3.00% 58,501 0 $22,901,179 $15,876,593 Interest paid on most of the debt issued by the City is exempt from federal income tax. As a result, purchasers of this debt are willing to accept lower interest rates than they would on taxable debt. The City pools the proceeds of bond issues held in construction funds and the accumulated cash in debt service funds with all other available cash and invests it according to the City's cash management policies and practices. This sometimes produces a higher yield on the investments than is being paid on the related debt. The federal tax code refers to this higher yield as arbitrage. Under some circumstances the earnings from these higher yields must be rebated to the federal government. Federal law requires that arbitrage be calculated and rebated at the end of each five-year period that tax exempt debt is outstanding, as well as at maturity. The City does not report arbitrage until the liability is due and payable. .• City of Crystal NOTES TO THE FINANCIAL STATEMENTS For the Year Ended December 31, 2013 Note 6 - Lonq-Term Debt (Continued) Changes in long-term debt during 2013 are summarized as follows: Governmental Activities Bonds Payable - G.O. bonds - Aquatic center bonds - 2005B Street refunding and reconstruction bonds - 2010B Street reconstruction bonds - 2013B Bond discounts Sub-total G.O. special assessment bonds with government commitment - Improvement & refunding bonds - 2004A Improvement bonds - 2005A Improvement bonds - 2006A Improvement bonds - 2008A Improvement bonds - 2009A Improvement bonds - 2011A Improvement bonds - 2012A Improvement bonds - 2013A Bond premiums Bond discounts Sub-total Totai Bonds Payable Note payable - LOGIS - public safety application software Compensated absences Governmental Activity Long-term Liabilities Business-type Activities Compensated absences Beginning Balance Additions Reductions Ending Due Within Balance One Year $1,415,000 $0 ($155,000) $1,260,000 $160,000 333,886 0 (247,293) 86,593 86,593 0 395,000 0 395,000 395,000 1,748,886 395,000 (402,293) 1,741,593 641,593 (7,665) 0 992 (6,673) (992) 1,741,221 395,000 (401,301) 1,734,920 640,601 845,000 0 (145,000) 700,000 140,000 s2o,000 0 ��oo,000> �20,00o s5,000 1,145,000 0 (125,000) 1,020,000 125,000 1,650,000 0 (155,000) 1,495,000 155,000 2,970,000 0 (200,000) 2,770,000 195,000 1,705,000 0 (145,000) 1,560,000 140,000 2,635,000 0 0 2,635,000 225,000 0 3,235,000 0 3,235,000 0 11,770,000 3,235,000 (870,000) 14,135,000 1,075,000 68,635 58,626 (6,126) 121,135 8,332 (69,884) 0 5,361 (64,523) (5,361) 11,768,751 3,293,626 (870,765) 14,191,612 1,077,971 13,509,972 3,688,626 (1,272,066) 15,926,532 1,718,572 35,081 0 (35,081) 0 0 882,942 719,266 (761,694) 840,514 225,012 $14,427,995 $4,407,892 ($2,068,841) $16,767,046 $1,943,584 $100,217 $62,965 ($62,965) $100,217 $24,361 � fj City of Crystal NOTES TO THE FINANCIAL STATEMENTS For the Year Ended December 31, 2013 Note 6 — Lonq-Term Debt (Continued) G.O. aquatic center bonds were issued to finance the reconstruction of the municipal pool and waterslide. G.O. street refunding and reconstruction bonds, Series 2010B, were issued to finance reconstruction of the portion of Hennepin County Highway 81 that runs through the City. The bonds were sold to Hennepin County at a zero interest rate. G.O. street reconstruction bonds, Series 2013B, were issued to finance reconstruction of the portion of Hennepin County Highway 81 that runs through the City. The bonds were sold to Hennepin County at a zero interest rate. Bond payments will be funded by property taxes and interest earnings. Annual debt service requirements to maturity for G.O. bonds are as follows: Governmental Activities - Year Ending G.O. Bonds December 31 Principal Interest 2014 $641,593 $47,200 2015 165,000 40,700 2016 170,000 34,000 2017 180,000 27,000 2018 185, 000 19, 700 2019-2020 400,000 16,200 $1,741,593 $184,800 G.O. special assessment bond payments will be funded by special assessments levied against property owners benefited by street improvements as well as interest earnings. Annual debt service requirements to maturity for G.O. special assessment bonds are as follows Governmental Activities - G.O. Special Year Ending Assessment Bonds December 31 Principal Interest 2014 $1,075,000 $412,524 2015 1,215,000 382,496 2016 1,220,000 349,629 2017 1,190,000 315,655 2018 1,160,000 281,411 2019-2023 4,835,000 917,813 2024-2028 2,980,000 316,744 2029-2031 460,000 15,431 $14,135,000 $2,991,703 71 City of Crystal NOTES TO THE FINANCIAL STATEMENTS For the Year Ended December 31, 2013 Note 6 — Lonq-Term Debt (Continuedl Total delinquent special assessments receivable for all funds for the years ending December 31, 2013 and 2012 were $195,345 and $234,174, respectively. Compensated absences are liquidated by either the General Fund or enterprise funds, depending upon where employees' time is assigned. Note 7— Tax Increment Financinq Revenue Notes The City has entered into several private redevelopment agreements regarding certain tax increment properties. Reimbursements for these agreements are in the form of tax increment revenue notes. These notes provide for the payment of principal, equal to the project redevelopment costs, plus interest at various rates. Payments on the notes will be made at the lesser of the note payment or the actual net tax increment received (or a reduced percentage received in certain cases), as stated in the agreement. Payments are first applied to accrued interest and then to principal balances. The notes are cancelled at the end of the agreement term whether or not they have been repaid in full. The outstanding principal balances as of December 31, 2013, are as follows: Tax Increment Revenue Note - 1995A Tax Increment Revenue Note - 1995B Tax Increment Revenue Note - 1996A Tax Increment Revenue Note - 2002 Maturity Interest Dates Rates 1997 - 2016 8.50% 1997 - 2016 8.50% 1999 - 2016 8.50% 2002 - 2016 7.00% Amount Outstanding $437,878 73,480 99,695 434,948 $1, 046, 001 Due to the nature of these notes (in that repayment is required only if sufficient tax increments are received), the outstanding amount is not reported in the accompanying financial statements. The City's position is that these are obligations to assign future and uncertain revenue sources and, as such, is not actual debt in substance. Payments of principal and interest on tax increment revenue notes are paid out of the TIF Districts special revenue fund. 72 City of Crystal NOTES TO THE FINANCIAL STATEMENTS For the Year Ended December 31, 2013 Note 8— Conduit Debt Obliqations From time to time, the City has issued revenue bonds to provide financial assistance to private-sector entities for the acquisition and construction of facilities deemed to be in the public interest. The bonds are secured by the property financed and are payable solely from payments received on the underlying mortgage loans. Upon repayment of the bonds, ownership of the acquired facilities transfers to the private-sector entity served by the bond issue. Neither the City or the State, nor any political subdivision thereof, is obligated in any manner for repayment of the bonds. Accordingly, the bonds are not reported as liabilities in the accompanying financial statements. As of December 31, 2013, there were five debt issues outstanding. The aggregate original issue amounts and principal balances outstanding as of December 31, 2013, are as follows: Name of Issue Crystal Apts. Multi Family Housing Refunding Bonds Calibre Chase Multi Family Housing Refunding Bonds St. Therese at Oxbow Lake Housing Revenue Notes LOGIS Government Facilities Revenue Bonds Crystal Leased Housing Multi Family Housing Bonds 73 Year 1997 2004 2005 2006 Original Issue $5,825,000 2,910,000 4,600,000 6,000,000 Principal Balance $5,825,000 2,910,000 3,715,788 4,537,787 2013 13,800,000 13,800,000 $33,135,000 $30,788,575 City of Crystal NOTES TO THE FINANCIAL STATEMENTS For the Year Ended December 31, 2013 Note 9 — Fund Balance A. Classifications A summary of governmental fund balance classifications at December 31, 2013, is as follows: Fund Balances Nonspendable - Prepaid items Total Nonspendable Restricted - Housing and redevelopment assistance MURL revolving fund Debt service 10% lawful gambling contrib. DWI-related enforcement, training, and education Total Restricted Committed - Compensated absences Housing and redevelopment assistance Cap. outlay - ciry wide Cap. ouUay - street reconstruction Cap. ouUay - replace. and renovation of city bldgs. Cap. oullay - police dept. Cap. oullay - fire dept. Cap. outlay - street maint. Total Committed Assigned - Police dept. purposes Park and rec. dept. purposes Otherpurposes Total Assigned Unassigned Malor Funds Special Revenue Fund Capital Project Funds Capital Street Major General Debt Improve. Recon- Building Other Fund EDA Service Revolving struction Replacement Funds Total $0 $0 $0 $66,053 $0 $0 $12,402 $78,455 0 0 0 66,053 0 0 12,402 78,455 0 0 0 0 35,651 0 0 0 5,440,681 0 0 0 0 0 0 0 35,651 5,440,681 840,514 0 0 3,914,649 0 0 0 0 0 0 0 0 0 0 0 0 840,514 3,914,649 0 0 0 0 0 0 0 0 6,862,599 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 1, 593,243 1,593,243 0 0 35,651 0 0 5,440,681 0 1, 945 1, 945 0 59,357 59,357 0 1,654,545 7,130,877 0 0 0 0 840,514 0 0 0 0 3,914,649 8,647,926 0 0 0 8,647,926 0 2,261,153 0 0 2,261,153 0 0 10,286,268 0 10,286,268 0 0 0 3,138,748 3,138,748 0 0 0 637,970 637,970 0 0 0 1,854,710 1,654,710 8,647,926 2,261,153 10,286,268 5,631,428 31,581,936 0 0 0 18,531 18,531 0 0 0 26,718 26,718 0 0 0 11,855 11,855 0 0 0 57,104 57,104 0 0 0 0 6,862,599 Total Fund Balances $7,703,113 $3,950,300 $5,440,681 $8,713,979 $2,261,153 $10,286,268 $7,355,479 $45,710,973 ��i City of Crystal NOTES TO THE FINANCIAL STATEMENTS For the Year Ended December 31, 2013 Note 9 — Fund Balance (Continued) B. Minimum Unassigned Fund Balance Policy The City Council has formally adopted a policy regarding the minimum unassigned fund balance for the General Fund. The most significant revenue source of the General Fund is property taxes. This revenue source is received in two installments during the year — June and December. As such, it is the City's goal to begin each fiscal year with sufficient cash flow reserves to fund operations between each semi- annual receipt of property taxes. The policy states that when fund balance at the end of a year exceeds non- spendable fund balance, restricted fund balance, liability for compensated absences of employees, assigned fund balance, and 45% of the subsequent year's budget, the City Council shall consider transferring at least 25% of the excess fund balance to one of the capital project funds. At any time during the year the City Council may consider transferring any or all of the excess fund balance to any other fund of the City, as needed. At December 31, 2013, the minimum fund balance required was $6,496,577, leaving an excess available for transfer of $1,206,536. Note 10 — Defined Benefit Pension Plans A. Plan Description All full-time and certain part-time employees of the City are covered by defined benefit plans administered by the Public Employees Retirement Association of Minnesota (PERA). PERA administers the General Employees Retirement Fund (GERF) and the Public Employees Police and Fire Fund (PEPFF), which are cost- sharing, multiple-employer retirement plans. These plans are established and administered in accordance with Minnesota Statutes, Chapters 353 and 356. GERF members belong to either the Coordinated Plan or the Basic Plan. Coordinated Plan members are covered by Social Security and Basic Plan members are not. All new members must participate in the Coordinated Plan. All police officers, fire-fighters, and peace officers who qualify for membership by statute are covered by the PEPFF. PERA provides retirement benefits as well as disability benefits to members, and benefits to survivors upon death of eligible members. Benefits are established by state statute and vest after five years of credited service. The defined retirement benefits are based on a member's highest average salary for any five successive years of allowable service, age, and years of credit at termination of service. 75 City of Crystal NOTES TO THE FINANCIAL STATEMENTS For the Year Ended December 31, 2013 Note 10 — Defined Benefit Pension Plans (Continued) A. Plan Description (Continued) Two methods are used to compute benefits for PERA's Coordinated and Basic Plan members. The retiring member receives the higher of a step-rate benefit accrual formula (Method 1) or a level accrual formula (Method 2). Under Method 1, the annuity accrual rate for a Basic Plan member is 2.2% of average salary for each of the first 10 years of service and 2.7% for each remaining year. The annuity accrual rate for a Coordinated Plan member is 1.2% of average salary for each of the first 10 years and 1.7% for each remaining year. Under Method 2, the annuity accrual rate is 2.7% of average salary for Basic Plan members and 1.7% for Coordinated Plan members for each year of service. For PEPFF members, the annuity accrual rate is 3% for each year of service. For all PEPFF members and GERF members hired prior to July 1, 1989, whose annuity is calculated using Method 1, a full annuity is available when age plus years of service equal 90. Normal retirement age is 55 for PEPFF members and 65 for Basic and Coordinated members hired prior to July 1, 1989. Normal retirement age is the age for unreduced Social Security benefits capped at 66 for Coordinated members hired on or after July 1, 1989. A reduced retirement annuity is also available to eligible members seeking early retirement. There are different types of annuities available to members upon retirement. A single-life annuity is a lifetime annuity that ceases upon the death of the retiree; no survivor annuity is payable. There are also various types of joint and survivor annuity options available which will be payable over joint lives. Members may also leave their contributions in the fund upon termination of public service in order to qualify for a deferred annuity at retirement age. Refunds of contributions are available at any time to members who leave public service, but before retirement benefits begin. The benefit provisions stated in the previous paragraphs of this section are current provisions and apply to active plan participants. Vested, terminated employees who are entitled to benefits but are not receiving them yet are bound by the provisions in effect at the time they last terminated their public service. PERA issues a publicly available financial report that includes financial statements and required supplementary information for GERF and PEPFF. That report may be obtained on the Internet at www.mnpera.org, by writing to PERA at 60 Empire Drive #200, St. Paul, Minnesota, 55103-2088, or by calling (651) 296-7460 or 1-800-652- 9026. B. Funding Policy Minnesota Statutes Chapter 353 sets the rates for employer and employee contributions. These statutes are established and amended by the state legislature. The City makes annual contributions to the pension plans equal to the amount required by state statutes. GERF Basic Plan members and Coordinated Plan members were required to contribute 9.1 % and 6.25%, respectively, of their annual covered salary in 2013. PEPFF members were required to contribute 9.6% of their annual covered salary in 2013. In 2013, the City was required to contribute the following percentages of annual covered payroll: 7.25% for Coordinated Plan 76 City of Crystal NOTES TO THE FINANCIAL STATEMENTS For the Year Ended December 31, 2013 Note 10 — Defined Benefit Pension Plans (Continued) B. Funding Policy (Continued) members and 14.4°/o for PEPFF members. The City's contributions to the Public Employees Retirement Fund for the years ending December 31, 2013, 2012, and 2011 were $288;445, $280,757, and $276,233, respectively. The City's contributions to the Public Employees Police & Fire Fund for the years ending December 31, 2013, 2012, and 2011 were $331,004, $333,909, and $327,229, respect�vely. The City's contributions were equal to the contractually required contributions for each year as set by state statute. Note 11 — iDefined Contribution Plan Seven council members of the City are covered by the Public Employees Defined Contribution Plan (PEDCP), a multiple-employer deferred compensation plan administered by the Public Employees Retirement Association of Minnesota (PERA). The PEDGP is a tax qualified plan under Section 401(a) of the Internal Revenue Code and all ccrntributions by or on behalf of employees are tax deferred until time of withd rawal. Plan ben�fits depend solely on amounts contributed to the plan plus investment earnings, less administrative expenses. Minnesota Statutes, Chapter 353D.03, specifies �lan provisions, including the employee and employer contribution rates for those qua�ified personnel who elect to participate. An eligible elected official who decides ta participate contributes 5% of salary, which is matched by the elected official's employer. Employer and employee contributions are combined and used to purchase shares in one or more of the seven accounts of the Minnesota Supplemental Investment Fund. For administering the plan, PERA receives 2% of employer contributions and twenty-five hundredths of 1% of the assets in each member's account annually. Total contributions made by the City during fiscal year 2013 were: Contribution Amount Percentage of Covered Payroll Required Employee Employer Employee Employer Rates $2,952 $2,952 5% 77 5% 5% City of Crystal NOTES TO THE FINANCIAL STATEMENTS For the Year Ended December 31, 2013 Note 12 — Post Employment Health Benefits Plan A. Plan Description The City provides a single-employer defined benefit healthcare plan to eligible retirees and their spouses. The plan offers medical coverage, which is administered by Blue Cross Blue Shield of Minnesota (BCBS). It is the City's policy to periodically review its medical coverage and to obtain requests for proposals in order to provide the most favorable benefits and premiums for City employees and retirees. B. Funding Policy Retirees and their spouses contribute to the healthcare plan at the same rate as City employees. This results in retirees receiving an implicit rate subsidy. Contribution requirements are established by the City based on contract terms with BCBS. Required contributions are based on projected pay-as-you-go financing requirements. For fiscal year 2013, the City contributed $74,732 to the plan. As of January 1, 2013, there were 13 retirees or dependents receiving health benefits from the City's health plan. C. Annual OPEB Cost and Net OPEB Obligation The City's annual Other Post Employment Benefit (OPEB) cost (expense) is calculated based on the Annual Required Contribution (ARC) of the City, an amount actuarially determined in accordance with the parameters of GASB Statement No. 45. The City prospectively implemented this Statement during 2008. The ARC represents a level of funding that, if paid on an ongoing basis, is projected to cover normal cost each year and amortize any unfunded actuarial liabilities (or funding excess) over a period not to exceed thirty years. The following table shows the components of the City's annual OPEB cost for the year, the amount actually contributed to the plan, and changes in the City's net OPEB obligation to the plan. Annual required contribution (ARC) Interest on net OPEB obligation Adjustment to annual required contributions Annual OPEB cost (expense) Employer contributions Increase in net OPEB obligation Net OPEB obligation - beginning of year Net OPEB obligation - end of year : Net OPEB Obligation $ 129,216 13, 500 (11,579) 131,137 (74,732) 56,405 300,004 $ 356,409 City of Crystal NOTES TO THE FINANCIAL STATEMENTS For the Year Ended December 31, 2013 Note 12 — Post Employment Health Benefits Plan (Continued) C. Annual OPEB Cost and Net OPEB Obligation (Continued) The City's annual OPEB cost, the percentage of annual OPEB cost contributed to the plan, and the net OPEB obligation for the current and past two years are as follows: Schedule of Employer Contributions Increase % Of (Decrease) Cumulative Annual Annual OPEB In Net Net Fiscal OPEB Employer Cost OPEB OPEB Year Cost Contribution Contributed Obligation Obligation Ended (a) (b) (b/a) (a-b) 12/31/11 $133,133 $92,143 69% $40,990 $245,846 12/31/12 128,474 74,316 58% 54,158 300,004 12/31/13 131,137 74,732 57% 56,405 356,409 D. Funded Status and Funding Progress As of January 1, 2013, the most recent actuarial valuation date, the City had no assets deposited to fund the plan. The actuarial accrued liability for benefits was $1,224,995 and the actuarial value of plan assets was $0, resulting in an unfunded actuarial accrued liability (UAAL) of $1,224,995. The estimated covered payroll (annual payroll of active employees covered by the plan) was $6,016,892, and the ratio of the UAAL to covered payroll was 20 percent. Actuarial valuations involve estimates of the value of reported amounts and assumptions about the probability of occurrence of events far into the future. Examples include assumptions about future employment, mortality, and the healthcare cost trend. Amounts determined regarding the funded status of the plan and the annual required contributions of the employer are subject to continual revision as actual results are compared with past expectations and new estimates are made about the future. The Schedule of Funding Progress, presented as required supplementary information following the notes to the financial statements, presents multi-year trend information about whether the actuarial value of plan assets is increasing or decreasing over time relative to the actuarial accrued liabilities for benefits. 79 City of Crystal NOTES TO THE FINANCIAL STATEMENTS For the Year Ended December 31, 2013 Note 12 — Post Emplovment Health Benefits Plan (Continuedl E. Actuarial Methods and Assumptions Projections of benefits for financial reporting purposes are based on the substantive plan (the plan as understood by the employer and the plan members) and include the �ypes of benefits provided at the time of each valuation and the historical pattern of sharing of benefit costs between the employer and plan members to that point. The actuarial methods and assumptions used include techniques that are designed to reduce the effects of short-term volatility in actuarial accrued liabilities, consistent with the long-term perspective of the calculations. In the January 1, 2013 actuarial valuation, the projected unit credit actuarial cost method was used. The actuarial assumptions included a 4.5% discount rate, which is based on the investment yield expected to finance benefits. The City currently does not plan to prefund for this benefit. At the actuarial valuation date, the annual he��thcare cost trend rate was calculated to be 8.67% initially, reduced incr�mentally to an ultimate rate of 5% after eleven years. Both rates included a 3% inflation assumption. The UAAL is being amortized as a level percentage of proj�ected payroll on a 30-year open period, with a single base at each measurement dat� equal to the UAAL. Note 13 — Risk Manaqement The City is exposed to various risks of loss related to torts; theft of, damage to and destrur,tion of assets; errors and omissions; injuries to employees; and natural disast�:rs. As such, the City participates in the League of Minnesota Cities Insurance Trust (LMCIT), a public entity risk pool currently operating as a common risk mana�ement and insurance program for cities that are parties to a joint powers agreement. The LMCIT is self-sustaining through member premiums and reinsures through commercial companies for claims in excess of pre-determined amounts. The LMCIT provides coverage for liability, errors and omissions, worker's compensation, auto, and other miscellaneous types of coverage. The City's Self-Insurance Fund (an internal service fund) is used to account for and finance its uninsured risks of loss. The Self-Insurance Fund provides coverage for up to a maximum of $25,000 for each general liability or property damage claim, up to $75,000 per year. The City purchases commercial insurance for claims in excess of coverage provided by this fund, as well as for all other risks of loss. Settled claims have not exceeded this commercial coverage in any of the past three fiscal years. There were no significant reductions in insurance coverage during 2013. ;►, City of Crystal NOTES TO THE FINANCIAL STATEMENTS For the Year Ended December 31, 2013 Note 13 — Risk Manaqement (Continued) All funds of the City contribute to the Self-Insurance Fund based on estimates of the amounts needed to pay prior and current year claims. The claims liability of $60,730 is included in accounts payable of the Self-Insurance Fund at December 31, 2013. The liability amount is based on the requirements of GASB Statement No. 10, which requires that a liability for claims be reported when information prior to the issuance of the financial statements indicates that it is probable that a liability has been incurred as of the date of the financial statements and the amount of the loss can be reasonably estimated. The estimate of the liability also includes amounts for incremental claim adjustment expenses related to specific claims and other claim adjustment expenses, regardless of whether allocated to specific claims. Estimated recoveries, for example from salvage or subrogation, are another component of the claims liability estimate. The maximum liability for any one year is $75,000. The total liability may exceed $75,000 if claims are open from more than one year. Changes in claims liability for 2013 and 2012 are as follows: Claims Liability - Beginning Year Of Year 2012 $249,469 2013 168,662 Current Year Claims and Changes In Estimates ($30,807) (75,507) Claims Liability - Payments End on Claims Of Year $50,000 $168,662 32,425 60,730 Note 14 — Joint Ventures and Jointiv Governed Orqanizations A. Joint Ventures 1. Golden Valley, Crystal, and New Hope Joint Water Commission The City is a member of a joint powers agreement, together with the cities of Golden Valley and New Hope, which established a Joint Water Commission (JWC). The JWC was created in 1963 to provide for the creation and maintenance of a joint water supply, distribution, and support system through which water purchased from the City of Minneapolis can be supplied to the population of the member cities. The city council of each member city is entitled to appoint one member to the JWC. Original construction costs were allocated to the member cities based on percentages agreed upon in the joint powers agreement. All property acquired under this agreement is owned by the members in proportion to the amount of construction costs paid by each member city. All subsequent operating and maintenance costs are apportioned to, and paid by, each member city on the basis of water usage. : City of Crystal NOTES TO THE FINANCIAL STATEMENTS For the Year Ended December 31, 2013 Note 14 — Joint Ventures and Jointiv Governed Orqanizations (Continued) A. Joint Ventures (Continued) 1. Golden Valley, Crystal, and New Hope Joint Water Commission (Continued) The City's equity interest and its share of the net income (loss) of the JWC are reported in the City's Water Fund (an Enterprise Fund). The City's equity interest in the JWC at December 31, 2013 is $934,192. Due to concurrent timing of the City's fiscal year end and audit of the JWC, the City reports its equity interest in the JWC with a one-year lag. The following financial information is from the JWC's audited financial statements for the year ended December 31, 2012: TOTALASSETS TOTAL LIABILITIES NET POSITION Net investment in capital assets Restricted for capital improvements Unrestricted Total Net Position TOTALPROGRAM EXPENSES TOTALPROGRAM REVENUES NET PROGRAM REVENUE TOTALGENERALREVENUES CHANGE IN NET POSITION NET POSITION Beginning of year End of year $ 4,223,876 866, 561 1,308,509 1, 203, 916 844, 890 $ 3,357,315 $ 8,039,752 8,687,310 647, 558 124, 060 771,618 2,585,697 $ 3,357,315 JWC audited financial statements are available from the City of Golden Valley, Finance Department, 7800 Golden Valley Road, Golden Valley, MN 55427. 2. West Metro Fire-Rescue District Effective January 2, 1998, the City entered into a joint powers agreement with the City of New Hope for the purpose of consolidating fire departments of the two cities. Operations commenced in July 1988 under the name of West Metro Fire-Rescue District (the District). The District is governed by a seven-member board Crystal City Council member who is appointed by appointed by the City Council, and the City Manager, : of directors that includes one resolution, one public member who serves ex officio. City of Crystal NOTES TO THE FINANCIAL STATEMENTS For the Year Ended December 31, 2013 Note 14 — Joint Ventures and Jointiv Governed Orqanizations (Continued) A. Joint Ventures (Continued) 2. West Metro Fire-Rescue District (Continued) As required by the agreement, the City transferred fire department equipment to the District, retaining its rights to these assets in the event of the District's dissolution. The equipment transferred had a cost value of $1,923,820. The District recorded only the rolling stock received and recorded it at its estimated fair value. Other equipment items were not capitalized. The City's equity interest and its share of the net income (loss) of the District are reported only in the government-wide financial statements. It is not reported in the General Fund because the equity interest represents equity primarily in capital assets vs. financial resources. The City's equity interest in the District at December 31, 2013 is $2,677,560. Due to concurrent timing of the City's fiscal year end and audit of the District, the City reports its equity interest in the District with a one-year lag. The following financial information is from the District's audited financial statements for the year ended December 31, 2012: TOTAL ASSETS $ 5,737,969 TOTAL LIABILITIES 525,092 NET POSITION Net investment in capital assets 4,075,937 Restricted for donor approved purposes 181,120 Un restricted 955, 820 Total Net Position $ 5,212,877 TOTAL PROGRAM EXPENSES $ 2,225,221 TOTAL PROGRAM REVENUES 2,028,762 NET PROGRAM REVENUE (EXPENSE) (196,459) TOTAL GENERAL REVENUES 65,103 CHANGE IN NET POSITION (131,356) NET POSITION Beginning of year End of year 5,344,233 $ 5,212,877 The activities of the District will continue to be funded entirely by the cities of Crystal and New Hope, with each city contributing its proportionate share of the annual operating budget in monthly installments. According to a formula in the agreement, the City's share of the District's operating budget is 50%. Audited financial statements are available from West Metro Fire-Rescue District, 4251 Xylon Avenue N., New Hope, MN 55428. � City of Crystal NOTES TO THE FINANCIAL STATEMENTS For the Year Ended December 31, 2013 Note 14 — Joint Ventures and Jointiv Governed Orqanizations (Continued) B. Jointly Governed Organizations 1. Local Government Information Systems Association (LOGIS) The City is a member of LOGIS, a consortium of Minnesota government entities that provides computerized data processing and support services to its members. LOGIS is legally separate from the City, the City does not appoint a voting majority of the Board, and it is fiscally independent of the City. The amount paid to LOGIS for services received in 2013 was $309,153, which was allocated to various funds based on application usage. 2. LOGIS Insurance Group This group provides cooperative purchasing of health and life insurance benefits for over 40 government entities. The amount paid for 2013 health and life insurance benefits was $983,786.55. 3. Pets Under Police Security (PUPS) The City is party to a joint powers agreement, together with five other cities, which created an organization to provide for the efficient and economical impoundment of animals in a jointly owned and operated facility. The amount paid to PUPS for services received in 2013 was $15,079. 4. B�ssett Creek Watershed Management Commission (BCWMC) The City is party to a joint powers agreement, together with eight other cities, the purpose of which is to provide for cooperative planning, usage, and improvement of the B�ssett Creek watershed. The amount paid to BCWMC in 2013 was $27,424. 5. Shingle Creek Watershed Management Commission (SCWMC) The City is party to a joint powers agreement, together with eight other cities, which was created to protect and manage the water resources of the Shingle Creek watershed. The amount paid to SCWMC in 2013 was $24,361. 6. Hennepin Recycling Group (HRG) The City is party to a joint powers agreement, together with the cities of Brooklyn Center and New Hope, which established HRG. HRG was created to provide for the efficient and economical collection, recycling, and disposal of solid waste within the cities. HRG contracts for collection and recycling activities and the participating cities are billed for services provided to its residents. The amount paid to HRG for services received in 2013 was $323,568. Accounting services for HRG were provided by the City, which has reported the financial accounts of HRG in an Agency Fund in these financial statements. ; Jl City of Crystal NOTES TO THE FINANCIAL STATEMENTS For the Year Ended December 31, 2013 Note 15 — Facilitv Use Aqreement On August 24, 2004, the City entered into a licensor-licensee relationship with ISD 281. Per terms of the agreement, the City contributed $900,000 towards the cost of constructing and equipping a gymnasium. In return, the City is entitled to use the space for public recreation, as well as programs and services for its residents. The agreement is for a term of 40 years, from September 1, 2005 through August 31, 2045. ISD 281 has title to the property and is responsible for all subsequent operations and maintenance costs. Note 16 — Funds Opened and Closed Durinq the Current Year The Community Development Block Grant (CDBG) Fund was re-opened and re-closed during the current year to account for additional activity. Net sale proceeds from the sale of one residential property were passed through to Hennepin County, administrator of the CDBG program. Because net sale proceeds revert to Hennepin County, the net realizable value of CDBG properties are not included in Land Held for Resale. Note 17 — Commitments At December 31, 2013, the City had the following construction contract commitments outstanding: Project Contractor Phase 13 street reconstruction Palda & Sons, Inc. Partial roof replacement on City Hall bldg. McPhillips Bros. Roofing Co. 639W Wetland restoration Blackstone Contractors, LLC Contract Amount $5,729,006 83,827 14, 850 Remaining Commitment $786,851 6, 536 1,125 In addition, the City is party to a cost-sharing agreement with Hennepin County to reconstruct the portion of Hennepin County Highway 81 which runs through the City. The cost-sharing agreement relates to property acquisition and construction for this multi-year project, which began in 2009 and is expected to run through 2014. The best estimate of the City's total costs at this point in time is $4 million (including $2,600,000 of existing and planned bonded debt issued to Hennepin County). As of December 31, 2013, $3,285,492 (including $2,118,407 of payments on bonded debt) had been paid under the cost-sharing agreement and the unspecified balance will be paid in subsequent years. Note 18 — Continqent Liabilities The City is a defendant in various lawsuits. Although the outcome of these lawsuits is not presently determinable, it is the opinion of the City's attorney that resolution of these matters will not have a material adverse effect on the financial condition of the City. : City of Crystal NOTES TO THE FINANCIAL STATEMENTS For the Year Ended December 31, 2013 Note 19 — Chanqe In Accountinq Principle For the year ended December 31, 2013, the City implemented GASB Statement No. 65, Items Previously Reported as Assets and Liabilities. This resulted in the reclassification of items previously reported as Deferred Revenue (for property taxes, special assessments, long-term receivables, and state aid) to Deferred Inflows Of Resources. It also resulted in an adjustment of $164,180 to Net Position — Beginning of Year on the Statement Of Activities, to eliminate Deferred Charges for Bond Issuance Costs which are no longer required to be capitalized. Note 20 — Subsequent Events Subsequent to December 31, 2013, the City Council approved the following significant contracts: Project Contractor City council chambers upgrade - Audio / Video Alpha Video & Audio, Inc. Lighting Peoples Electric Co, Inc. Note 21 — GASB Statements Issued But Not Yet Implemented Contract Amount $204,013 GASB Statement No. 68, Accounting and Financial Reporting for Pensions, will replace the requirements of GASB Statement No. 27, Accounting for Pensions by State and Local Governmental Employers, as well as GASB Statement No. 50, Pension Disclosures, as they relate to governments that provide pension benefits through pension plans administered as trusts or similar arrangements that meet certain criteria. GASB Statement No. 68 requires governments providing defined benefit pensions to recognize their long-term obligation for pension benefits as a liability for the first time, and to more comprehensively and comparably measure the annual costs of pension benefits. The provisions of GASB Statement No. 68 are effective for fiscal years beginning after June 15, 2014. Required Supplementary Information City of Crystal REQUIRED SUPPLEMENTARY INFORMATION Schedule of Funding Progress December 31, 2013 Schedule of Fundin Pro ress Unfunded Actuarial Actuarial UAAL As Value Of Actuarial Accrued Estimated A% Of Actuarial Plan Accrued Liability Funded Covered Covered Valuation Assets Liability (UAAL) Ratio Payroll Payroll Date (a) (b) (b-a) a( /b) (c) b-a / c 01/01/11 " $0 $1,373,699 $1,373,699 01/01/12 0 1,164,949 1,164,949 01 /01 /13 * 0 1,224,995 1,224,995 0% $5,891,381 23% 0% 5,799,414 20% 0% 6,016,892 20% * Because an actuarial valuation is being performed once every two years (in even years), the liabilities and annual costs are based on the same population as the previous year's liabilities and annual costs. : This page intentionally left blank Combining & Individual Funds Nonmajor Governmental Funds Special Revenue Funds Special Revenue Funds are used to account for specific revenues that are restricted to expenditures for particular purposes. TIF Districts — This fund accounts for activities of the City's tax increment financing (TIF) districts. The main financing sources include tax increment revenue and interest. CDBG — This fund accounts for activities of the Community Development Block Grant (CDBG) program. The main financing source is net sale proceeds, derived from the sale of residential properties previously purchased with grant funding. Special Projects — This fund is used to account for miscellaneous grants as well as revenues and expenditures relating to DWI-forFeited vehicles. In addition, this fund is used to account for revenues and expenditures of funds donated for ongoing, city-specified projects that may otherwise not be accomplished due to lack of funding. Capital Projects Funds Capital Projects Funds are used to account for the acquisition and construction of major capital facilities of the City, with the exception of those financed by Proprietary Funds. Police Equipment Revolvinq — This fund is used to account for capital acquisitions of the City's police department. The fund was initially funded by a 1999 refund of the City's proportionate share of residual assets in the overfunded PERA police consolidation account, which was merged with the PERA Police and Fire Fund. Financing sources may include transfers from other funds, interest, and proceeds from the sale of equipment. Fire Equipment Revolvinq — This fund is used to accumulate funds to pay for the replacement of fire trucks. Financing sources may include transfers from other funds as well as interest. Street Maintenance — This fund is used to account for transactions and reserves relating to street sealcoat projects in areas of the City where streets have previously been reconstructed. In addition, miscellaneous mill and overlay and pavement maintenance projects are accounted for in this fund. Financing sources may include transfers from the General Fund, special assessments, cost reimbursements, and interest. .: . City of Crystal COMBINING BALANCE SHEET Nonmajor Governmental Funds December 31, 2013 ASSETS Cash and cash equivalents Investments Accrued interest Delinquent taxes receivable Special assessments receivable Due from other governments Prepaid items Total Assets LIABILITIES Accounts payable Due to other governments Total Liabilities DEFERRED INFLOWS OF RESOURCES Unavailable revenue - property taxes Unavailable revenue - special assessments Total Deferred Inflows Of Resources FUND BALANCES Nonspendable Restricted Committed Assigned Total Fund Balances Total Liabilities, Deferred Inflows Of Resources, and Fund Balances Special Revenue TIF Special Districts CDBG Projects Total $148,649 $0 $10,778 $159,427 1,483,084 0 102,922 1,586,006 4,165 0 0 4,165 44,016 0 0 44,016 0 0 0 0 0 0 7,318 7,318 0 0 0 0 $1,679,914 $0 $121,018 $1,800,932 $39,979 $0 $2,612 $42,591 2,676 0 0 2,676 42,655 0 2,612 45,267 44,016 0 0 44,016 0 0 0 0 44,016 0 0 44,016 0 0 0 0 1,593,243 0 61,302 1,654,545 0 0 0 0 0 0 57,104 57,104 1,593,243 0 118,406 1,711,649 $1,679,914 $0 $121,018 $1,800,932 �►, Capital Projects Total Police Fire Nonmajor Equipment Equipment Street Governmental Revolving Revolving Maintenance Total Funds $285,176 $57,963 $168,427 $511,566 $670,993 2,845,224 578,302 1,680,406 5,103,932 6,689,938 8, 348 1, 705 4, 970 15, 023 19,188 0 0 0 0 44,016 0 0 145,508 145,508 145,508 0 0 907 907 8,225 12,402 0 0 12,402 12,402 $3,151,150 $637,970 $2,000,218 $5,789,338 $7,590,270 $0 0 0 0 0 0 12,402 0 3,138, 748 0 3,151,150 �� 0 0 0 0 145,508 145,508 0 145,508 145,508 0 0 637,970 0 637,970 $42,591 2,676 45,267 44,016 145,508 189, 524 0 12,402 12,402 0 0 1,654,545 1,854,710 5,631,428 5,631,428 0 0 57,104 1,854,710 5,643,830 7,355,479 $3,151,150 $637,970 $2,000,218 $5,789,338 $7,590,270 91 City of Crystal COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES Nonmajor Governmental Funds For the Year Ended December 31, 2013 REVENUES Property taxes Special assessments Intergovernmental Charges for sales and/or services Fines and forfeitures Interest Net increase (decrease) in fair value of investments Miscellaneous Total Revenues EXPENDITURES Current - General government Public safety Public works Parks and recreation Community development Capital outlay Debt service - Principal Interest and other fees Total Expenditures EXCESS (DEFICIENCY) OF REVENUES OVER EXPENDITURES OTHER FINANCING SOURCES (USES) Proceeds from sale of property and equipment Transfers in Transfers out Total Other Financing Sources (Uses) NET CHANGE IN FUND BALANCES FUND BALANCES - BEGINNING OF YEAR FUND BALANCES - END OF YEAR � Special Revenue TIF Special Districts CDBG Projects Total $356,135 $0 $2,755 $358,890 0 0 0 0 0 0 27,993 27,993 0 3,562 0 3,562 0 0 23,075 23,075 17,507 0 0 17,507 (14,310) 0 0 (14,310) 13,191 0 25,632 38,823 372,523 3,562 79,455 455,540 0 0 10,674 10,674 0 0 59,768 59,768 0 0 0 0 0 0 6,359 6,359 198,227 3,562 0 201,789 0 0 0 0 86,518 0 0 86,518 87,255 0 0 87,255 372,000 3,562 76,801 452,363 523 0 2,654 3,177 0 0 0 0 0 0 0 0 (3,136) 0 0 (3,136) (3,136) 0 0 (3,136) (2,613) 0 2,654 41 1, 595, 856 0 115, 752 1, 711, 608 $1,593,243 $0 $118,406 $1,711,649 Capital Projects Total Police Fire Nonmajor Equipment Equipment Street Governmental Revolving Revolving Maintenance Total Funds $0 $0 $0 $0 $358,890 0 0 45,904 45,904 45,904 0 0 0 0 27,993 0 0 9 9 3,571 0 0 0 0 23,075 35,091 7,167 20,890 63,148 80,655 (28,683) (5,858) (17,075) (51,616) (65,926) 3,800 0 20,717 24,517 63,340 10,208 1,309 70,445 81,962 537,502 0 1,455 0 0 0 184, 560 0 0 186, 015 (175,807) 1, 309 0 0 10,674 0 1,455 61,223 160, 060 160, 060 160, 060 0 0 6,359 0 0 201,789 0 184, 560 184, 560 0 0 86,518 0 0 87,255 160,060 346,075 798,438 (89,615) (264,113) (260,936) 9,960 0 0 9,960 9,960 125,700 0 71,400 197,100 197,100 0 0 0 0 (3,136) 135,660 0 71,400 207,060 203,924 (40,147) 1,309 (18,215) (57,053) (57,012) 3,191,297 636,661 1,872,925 5,700,883 7,412,491 $3,151,150 $637,970 $1,854,710 $5,643,830 $7,355,479 � City of Crystal SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL TIF Districts - Special Revenue For the Year Ended December 31, 2013 REVENUES Property taxes I nterest Net increase (decrease) in fair value of investments Miscellaneous Total Revenues EXPENDITURES Current - Community development Debt service - Principal Interest and other fees Total Expenditures EXCESS (DEFICIENCY) OF REVENUES OVER EXPENDITURES OTHER FINANCING SOURCES (USES) Transfers out NET CHANGE IN FUND BALANCES FUND BALANCES - BEGINNING OF YEAR FUND BALANCES - END OF YEAR Budgeted Amounts Actual Variance With Original Final Amounts Final Budget $387,000 $387,000 $356,135 ($30,865) 5,200 5,200 17,507 12,307 0 0 (14,310) (14,310) 0 0 13,191 13,191 392,200 392,200 372,523 (19,677) 247,333 280,162 198,227 81,935 95,569 98,169 86,518 11,651 87,500 87,500 87,255 245 430,402 465,831 372,000 93,831 (38,202) (73,631) 523 74,154 (11,000) (11,000) (3,136) 7,864 (49,202) (84,631) (2,613) 82,018 1,595,856 1,595,856 1,595,856 0 $1,546,654 $1,511,225 $1,593,243 $82,018 ■� City of Crystal SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL CDBG - Special Revenue For the Year Ended December 31, 2013 REVENUES Charges for sales and/or services EXPENDITURES Current - Community development EXCESS (DEFICIENCY) OF REVENUES OVER EXPENDITURES FUND BALANCES - BEGINNING OF YEAR FUND BALANCES - END OF YEAR Budgeted Amounts Original Final $0 [�] $0 Actual Amounts $3, 562 Variance With , Final Budget $3,562 0 3,562 (3,562) 0 0 0 0 0 0 . 0 0 $0 $0 $0 $0 � City of Crystal SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL Special Projects - Special Revenue For the Year Ended December 31, 2013 REVENUES Property taxes Intergovernmental Fines and forfeitures Miscellaneous Total Revenues EXPENDITURES Current - General government Public safety Parks and recreation Total Expenditures EXCESS (DEFICIENCY) OF REVENUES OVER EXPENDITURES Budgeted Amounts Actual Variance With Original Final Amounts Final Budget $0 $0 $2,755 $2,755 18,000 18,000 27,993 9,993 18,000 18,000 23,075 5,075 27,000 27,000 25,632 (1,368) 63,000 63,000 79,455 16,455 6,000 6,000 10,674 (4,674) 76,500 76,500 59,768 16,732 9,000 9,000 6,359 2,641 91,500 91,500 76,801 14,699 (28,500) (28,500) 2,654 31,154 FUND BALANCES - BEGINNING OF YEAR 115,752 115,752 115,752 0 FUND BALANCES - END OF YEAR $87,252 $87,252 $118,406 $31,154 City of Crystal SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL Police Equipment Revolving - Capital Projects For the Year Ended December 31, 2013 REVENUES Interest Net increase (decrease) in fair value of investments Miscellaneous Total Revenues EXPENDITURES Current - Public safety Capital outlay Debt service - Principal Interest Total Expenditures EXCESS (DEFICIENCY) OF REVENUES OVER EXPENDITURES OTHER FINANCING SOURCES (USES) Proceeds from sale of property and equipment Transfers in Total Other Financing Sources (Uses) NET CHANGE IN FUND BALANCES FUND BALANCES - BEGINNING OF YEAR FUND BALANCES - END OF YEAR Budgeted Amounts Actual Original Final Amounts $28,136 $28,136 $35,091 ,� � 28,136 Variance With Final Budget $6,955 0 (28,683) (28,683) 0 3,800 3,800 28,136 10,208 (17,928) 0 0 1,455 (1,455) 157,800 173,800 184,560 (10,760) 11,350 11,350 0 11,350 1,052 1,052 0 1,052 170,202 186,202 186,015 187 (142,066) (158,066) (175,807) 15,000 15,000 9,960 125,700 125,700 125,700 (17,741) (5,040) 0 140, 700 140, 700 135,660 (5, 040) (1,366) (17,366) (40,147) (22,781) 3,191,297 3,191,297 3,191,297 0 $3,189,931 $3,173,931 $3,151,150 ($22,781) 97 City of Crystal SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL Fire Equipment Revolving - Capital Projects For the Year Ended December 31, 2013 REVENUES Interest Net increase (decrease) in fair value of investments Total Revenues FUND BALANCES - BEGINNING OF YEAR FUND BALANCES - END OF YEAR Budgeted Amounts Actual Variance With Original Final Amounts Final Budget $6,300 $6,300 $7,167 $867 0 0 (5,858) (5,858) 6,300 6,300 1,309 (4,991) 636,661 636,661 636,661 0 $642,961 $642,961 $637,970 ($4,991) �• City of Crystal SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL Street Maintenance - Capital Projects For the Year Ended December 31, 2013 Budgeted Amounts Actual Variance With Original Final Amounts Final Budget REVENUES Special assessments $33,437 $33,437 $45,904 $12,467 Charges for sales and/or services 27,643 27,643 9 (27,634) Interest 20,890 20,890 Net increase (decrease) in fair value of investments 0 0 (17,075) (17,075) Miscellaneous 0 0 20,717 20,717 Total Revenues 61,080 61,080 70,445 9,365 EXPENDITURES Current - Public works 99,370 160,070 160,060 10 EXCESS (DEFICIENCY) OF REVENUES OVER EXPENDITURES (38,290) (98,990) (89,615) 9,375 OTHER FINANCING SOURCES (USES) Transfers in 71,400 71,400 71,400 0 NET CHANGE IN FUND BALANCES 33,110 (27,590) (18,215) 9,375 FUND BALANCES - BEGINNING OF YEAR 1,872,925 1,872,925 1,872,925 0 FUND BALANCES - END OF YEAR $1,906,035 $1,845,335 $1,854,710 $9,375 .: City of Crystal SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL Debt Service For the Year Ended December 31, 2013 REVENUES Property taxes Special assessments Interest Net increase (decrease) in fair value of investments Total Revenues EXPENDITURES Debt service - Principal Interest and other fees Total Expenditures EXCESS (DEFICIENCY) OF REVENUES OVER EXPENDITURES Budgeted Amounts Actual Variance With Original Final Amounts Final Budget $773,553 $773,553 $775,688 $2,135 1, 559, 899 1, 559, 899 1, 936, 541 376, 642 35,478 35,478 48,748 13,270 0 0 (36,010) (36,010) 2,368,930 2,368,930 2,724,967 356,037 1,217,549 1,275,549 1,272,293 3,256 375,192 426,492 417,935 8,557 1,592,741 1,702,041 1,690,228 11,813 776,189 666,889 1,034,739 367,850 FUND BALANCES - BEGINNING OF YEAR 4,405,942 4,405,942 4,405,942 0 FUND BALANCES - END OF YEAR $5,182,131 $5,072,831 $5,440,681 $367,850 10� City of Crystal SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL Capital Improvement Revolving - Capital Projects For the Year Ended December 31, 2013 REVENUES Special assessments Intergovernmental Charges for sales and/or services Interest Net increase (decrease) in fair value of investments Miscellaneous Total Revenues EXPENDITURES Capital Outlay Debt service - Interest and other fees Total Expenditures EXCESS (DEFICIENCY) OF REVENUES OVER EXPENDITURES Budgeted Amounts Actual Original Final Amounts $132,600 39,700 0 73,350 0 0 245,650 $140,000 $142,503 74, 081 74, 523 34,728 34,728 73,350 94,776 , 0 (77,469) 77,110 78,030 399,269 347,091 Variance With Final Budget $2,503 442 0 21,426 (77,469) 920 (52,178) 1,067,600 1,854,417 1,615,940 238,477 0 0 3,265 (3,265) 1,067,600 1,854,417 1,619,205 235,212 (821,950) (1,455,148) (1,272,114) OTHER FINANCING SOURCES (USES) Issuance of bonds 75,000 395,000 Proceeds from sale of property and equipment 0 47,350 Transfers in 647,200 713,920 Total Other Financing Sources (Uses) NET CHANGE IN FUND BALANCES FUND BALANCES - BEGINNING OF YEAR FUND BALANCES - END OF YEAR 395, 000 47,350 695,114 183,034 0 (18,806) 722,200 1,156,270 1,137,464 (18,806) (99,750) (298,878) (134,650) 164,228 8,848,629 8,848,629 8,848,629 0 $8,748,879 $8,549,751 $8,713,979 $164,228 1�1 City of Crystal SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL Street Reconstruction - Capital Projects For the Year Ended December 31, 2013 REVENUES Special assessments Intergovernmental Interest Net increase (decrease) in fair value of investments Miscellaneous Total Revenues EXPENDITURES Capital outlay Debt service - Interest and other fees Total Expenditures EXCESS (DEFICIENCY) OF REVENUES OVER EXPENDITURES OTHER FINANCING SOURCES (USES) Issuance of bonds Premium on bonds issued Total Other Financing Sources (Uses) NET CHANGE IN FUND BALANCES FUND BALANCES - BEGINNING OF YEAR FUND BALANCES - END OF YEAR Budgeted Amounts Actual Original Final Amounts $1,205,805 $1,205,805 $1,110,219 100,000 100,000 601,059 25,017 25,017 35,507 Variance With Final Budget ($95,586) 501,059 10,490 0 0 (29,023) (29,023) 203,846 203,846 320,101 116,255 1,534,668 1,534,668 2,037,863 503,195 5,664, 931 5, 664, 931 5,477, 987 186, 944 57,489 57,489 55,726 1,763 5,722,420 5,722,420 5,533,713 188,707 (4,187,752) 2,931,928 0 (4,187,752) (3,495,850) 691,902 2,931,928 3,235,000 303,072 0 58,626 58,626 2,931,928 2,931,928 3,293,626 361,698 (1,255,824) (1,255,824) (202,224) 1,053,600 2,463,377 2,463,377 2,463,377 0 $1,207,553 $1,207,553 $2,261,153 $1,053,600 1�2 City of Crystal SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL Major Building Replacement - Capital Projects For the Year Ended December 31, 2013 REVENUES I nterest Net increase (decrease) in fair value of investments Total Revenues EXPENDITURES Current - General government Capital outlay Total Expenditures EXCESS (DEFICIENCY) OF REVENUES OVER EXPENDITURES FUND BALANCES - BEGINNING OF YEAR FUND BALANCES - END OF YEAR Budgeted Amounts Actual Variance With Original Final Amounts Final Budget $96,000 $96,000 $115,920 $19,920 0 (94,751) (94,751) 96,000 21,169 (74,831) 0 26,900 26,824 0 17,100 17,040 0 44,000 43,864 76 60 136 96,000 52,000 (22,695) (74,695) 10,308,963 10,308,963 10,308,963 0 $10,404,963 $10,360,963 $10,286,268 ($74,695) 1�3 This page intentionally left blank 104 Internal Service Funds Internal Service Funds are used to account, on a cost-reimbursement basis, for the financing of goods or services provided by one department to other departments of the City. Self-Insurance — This fund is used to account for and finance the City's uninsured risks of loss. Charges are made to various funds of the City to recoup insurance premiums and claims paid. Post Employment Health Benefits — This fund is used to account for and finance the City's liability associated with providing post employment health benefits to eligible retirees of the City. Currently, no charges are being made to various funds of the City to recoup premiums paid, as the existing net position of the fund is deemed sufficient to provide required benefits for the remaining retirees into the foreseeable future. The need to resume charges for services will be evaluated on an ongoing, annual basis. 105 City of Crystal COMBINING STATEMENT OF NET POSITION Internal Service Funds December 31, 2013 ASSETS Current Assets: Cash and cash equivalents Investments Accrued interest Total Assets LIABILITIES Current Liabilities: Accounts payable Due to other governments Total Liabilities NET POSITION U n restricted r„ Self- Insurance $97,674 974,502 2,696 1,074,872 Post Employment Health Benefits $16,107 160, 702 489 177,298 Total $113,781 1,135,204 3,185 1,252,170 61,654 3,607 65,261 8,849 0 8,849 70,503 3,607 74,110 $1,004,369 $173,691 $1,178,060 City of Crystal COMBINING STATEMENT OF REVENUES, EXPENSES AND CHANGES IN FUND NET POSITION Internal Service Funds For the Year Ended December 31, 2013 OPERATING REVENUES Charges for sales and/or services Miscellaneous Total Operating Revenues OPERATING EXPENSES Insurance OPERATING INCOME (LOSS) NON-OPERATING REVENUES (EXPENSES) Interest Net increase (decrease) in fair value of investments Total Non-Operating Revenues (Expenses) CHANGE IN NET POSITION NET POSITION - BEGINNING OF YEAR NET POSITION - END OF YEAR Post Employment Self- Health Insurance Benefits Total $163,364 $0 $163,364 92,696 14,959 107,655 256,060 14,959 271,019 137,621 0 137,621 118,439 14, 959 133, 398 11,330 2,054 13,384 (9,261) (1,679) (10,940) 2,069 375 2,444 120, 508 15, 334 135, 842 883, 861 158, 357 1, 042 , 218 $1,004,369 $173,691 $1,178,060 City of Crystal COMBINING STATEMENT OF CASH FLOWS Internal Service Funds For the Year Ended December 31, 2013 CASH FLOWS FROM OPERATING ACTIVITIES Receipts from customers Payments to suppliers Net cash provided by (used for) operating activities CASH FLOWS FROM INVESTING ACTIVITIES Proceeds from sales and maturities of investments Purchase of investments Interest received Net cash provided by (used for) investing activities NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS CASH AND CASH EQUIVALENTS - BEGINNING OF YEAR CASH AND CASH EQUIVALENTS - END OF YEAR RECONCILIATION OF OPERATING INCOME (LOSS) TO NET CASH PROVIDED BY (USED FOR) OPERATING ACTIVITIES Operating income (loss) Adjustments to reconcile operating income (loss) to net cash provided by (used for) operating activities: Changes in assets and liabilities - Increase (decrease) in accounts payable Increase (decrease) in due to other governments Net cash provided by (used for) operating activities NONCASH INVESTING, CAPITAL AND FINANCING ACTIVITIES Net increase (decrease) in fair value of investments ►; Self- Insurance Post Employment Health Benefits Total $256,060 $14,959 $271,019 (262,336) (28,973) (291,309) (6,276) (14,014) (20,290) 566,231 105,260 671,491 (540,427) (89,120) (629,547) 12,543 2,381 14,924 38,347 18,521 56,868 32,071 4,507 36,578 65,603 11,600 77,203 $97,674 $16,107 $113,781 $118,439 $14,959 $133,398 (107,900) (28,973) (136,873) (16,815) 0 (16,815) ($6,276) ($14,014) ($20,290) ($9,261) ($1,679) ($10,940) Agency Funds Agency funds are used to account for resources held by the City in a purely custodial capacity (assets equal liabilities). Hennepin Recvclinq Group — This fund is used to account for the collection, recycling and disposal of solid waste activities of the Hennepin Recycling Group. 1�9 City of Crystal STATEMENT OF CHANGES IN ASSETS AND LIABILITIES Agency Fund - Hennepin Recycling Group For the Year Ended December 31, 2013 ASSETS Cash and cash equivalents Investments Accrued interest Accounts receivable Due from other governments TOTALASSETS LIABILITIES Accounts payable Due to other governments Due to Hennepin Recycling Group TOTAL LIABILITIES Balance Balance 01/01/13 Additions Deletions 12/31/13 $108,377 $327,985 $249,364 $186,998 1,667,821 1,034,655 836,778 1,865,698 6,552 39,754 41,213 5,093 0 477,938 477,938 0 0 678 0 678 $1,782,750 $1,881,010 $1,605,293 $2,058,467 $50,589 $815,478 $815,907 $50,160 70,506 84,070 70,506 84,070 1,661,655 981,462 718,880 1,924,237 $1,782,750 $1,881,010 $1,605,293 $2,058,467 11� STATISTICAL SECTION Statistical Section This part of the City of Crystal's comprehensive annual financial report presents detailed information as a context for understanding what the information in the financial statements, note disclosures, and required supplementary information says about the government's overall financial health. Contents: Financiat Trends — Tables 1-4 These schedules contain trend information to help the reader understand how the government's financial performance and well-being have changed over time. Revenue Capacity — Tables 5-8 These schedules contain information to help the reader assess the government's most significant local revenue source, the property tax. Debt Capacity — Tables 9-12 These schedules present information to help the reader assess the affordability of the government's current levels of outstanding debt and the government's ability to issue additional debt in the future. Demographic and Economic Information — Table 13-14 These schedules offer demographic and economic indicators to help the reader understand the environment within which the government's financial activities take place. Operating Information — Table 15-17 These schedules contain service and infrastructure data to help the reader understand how the information in the governmenYs financial report relates to the services the government provides and the activities it performs. Sources: Unless otherwise noted, the information in these schedules is derived from the comprehensive annual financial reports for the relevant year. 111 This page intentionally left blank 112 Govemmental Activities - Net investment in capital assets Restrided Unrestricted Total Govemmental Activities Net Position Business-type Activities - Net investment in capital assets Restricted Unrestricted Total Business-type Adivities Net Position Primary Govemment - Net investment in capital assets Restricted Unrestricted Total Primary Govemment Net Position I-� I-� W 2004 2005 City of Crystal NET POSITION BY COMPONENT (Accrual Basis of Accounting) Last Ten Fiscal Years (unaudited) 2006 2007 2008 2009 2010 Table 1 2011 2012 2013 $25,571,609 $20,273,145 $24,893,699 $25,180,513 $26,770,028 $26,770,714 $26,510,303 $25,896,999 $26,574,766 $28,944,085 8,149,259 9,886,610 10,586,201 10,629,979 11,819,634 13,971,055 13,110,714 13,618,934 14,772,670 17,707,336 31,632,310 38,666,664 3�,472,039 39,131,250 39,002,515 39,960,809 39,847,074 43,259,125 43,950,199 43,687,744 $65,353,178 $68,826,419 $72,951,939 $74,941,742 $77,592,177 $80,702,578 $79,468,091 $82,775,058 $85,297,635 $90,339,165 $6,967,534 $6,986,059 $7,401,411 $7,382,275 $8,327,940 $11,482,129 $11,450,442 $12,763,559 $13,921,133 $15,655,823 0 0 0 0 0 0 0 0 0 0 8,698,622 9,521,039 10,720,803 12,682,951 13,815,233 10,912,321 11,563,188 11,319,800 10,416,828 10,114,825 $15,666,156 $16,507,098 $18,122,214 $20,065,226 $22,143,173 $22,394,450 $23,013,630 $24,083,359 $24,337,961 $25,770,648 $32,539,143 $27,259,204 $32,295,110 $32,562,788 $35,097,968 $38,252,843 $37,960,745 $38,660,558 $40,495,899 $44,599,908 8,149,259 9,886,610 10,586,201 10,629,979 11,819,634 13,971,055 13,110,714 13,618,934 14,772,670 17,707,336 40,330,932 48,187,703 48,192,842 51,814,201 52,817,748 50,873,130 51,410,262 54,578,925 54,367,027 53,802,569 $81,019,334 $85,333,517 $91,074,153 $95,006,968 $99,735,350 $103,097,028 $102,481,721 $106,858,417 $109,635,596 $116,109,813 EXPENSES: Govemmental Adivities - General govemment Public safety Public works Parks and recreation Community development Interest on long-term debt Total Govemmental Activities Expenses Business-type Activities - Water Sanitary sewer Storm drainage Street lights Recycling Total Business-type Activities Expenses Total Primary Govemment Expenses PROGRAM REVENUES: Govemmental Activities - Charges for Services - General govemment Public safety Public works Parks and recreation Community development Operating Grants and Contributions Capital Grants and Contributions Total Govemmental Activities Program Revenues Business-type Activities - Charges for Services - Water Sanitary sewer Storm drainage Street lights Recycling Operating Grants and Contributions Capital Grants and Contributions Total Business-type Adivities Program Revenues Total Primary Govemment Program Revenues 2004 2005 $1,607,256 $1,941,958 4,094,076 3,870,998 3,476,393 3,993,615 1,837,108 2,617,174 1,661,519 1,562,509 707,947 580,027 13, 384, 299 14, 566, 281 2,200,233 1,541,613 530,620 154,149 0 4,426,615 $17,810,914 $210,866 172,321 123,779 342,138 596,620 265,649 5,478,896 7,190,269 2,449,373 1,877,891 491,664 148,771 0 70,148 0 5,037,847 $12,228,116 2,252,779 1,845,653 604, 916 159,493 0 4,862,841 $19,429,122 $247,810 199,428 681,887 259,623 500,512 748,332 3,805,601 6,443,193 2,242,256 1,879,105 545,923 150,197 0 330,070 0 5,147,551 $11,590,744 City of Crystal CHANGES IN NET POSITION (Accrual Basis of Accounting) Last Ten Fiscal Years (unaudited) 2006 2007 2008 $1,824,361 $1,868,163 $2,244,098 4,114,543 4,758,208 5,205,078 3,556,148 2,954,963 3,520,939 2,043,862 2,359,280 2,481,244 2,679,817 2,633,846 3,348,828 859,785 556,108 603,715 15, 078,516 15,130,568 17,403,902 2,228,956 2,275,410 2,199,371 1, 724,731 1,791,915 1,879,187 603,584 420,085 429,906 133,285 131,804 177,313 0 299,587 303,729 4,690,556 4,918,801 4,989,506 $19,769,072 $20,049,369 $22,393,408 $241,056 224,366 219,278 461,215 473,186 324,984 6,262,233 8,206,318 2,486,581 1,897,566 610,537 149,440 0 123,622 0 5,267,746 $13,474,064 $237,059 248,284 2,924 507,166 543,194 390,218 2,238,767 4,167,612 2, 669,137 1,882,054 612,811 150,711 336,080 226,259 0 5,877,052 $10,044,664 $285,934 299,699 0 488,544 1,683,780 451,677 4,461, 854 7, 671,488 2,690,721 1,890,849 622,182 150,936 315,173 191,073 0 5,860,934 $13,532,422 Table 2 2009 2010 2011 2012 2013 $2,057,275 5,317,912 5,646,176 2,467,528 2,839,775 501,300 18,829,966 2,679,141 2,073,968 1,019,228 170,521 318,487 6,261,345 $25,091,311 $232,748 324,387 14,504 433,300 1,066,609 554,288 6,550,860 9,176,696 2,872,639 1,887,052 641,031 154, 708 330,626 153,868 0 6,039,924 $15,216,620 $2,115,117 5,979,472 6,075,243 2,494,542 1,656,365 531,689 18,852,428 2,482,146 1,934,868 501,194 148,627 322,072 5,388,907 $24,241,335 $205,696 305,692 13,832 447,166 848,120 854,645 2,977,318 5,652,469 2,607,834 1,856,830 648,338 161,702 324,935 171,337 71,385 5,842,361 $11,494,830 $2,084,038 6,247,082 3,997,978 2,475,881 2,168, 725 503,301 17,477,005 2,930,591 1,928,975 600,371 186,991 331,918 5,978,846 $23,455,851 $278,336 357,536 0 437,259 668,666 1,140,876 5,750,178 8,632,851 2,549,324 1,913,165 653, 009 162,722 334,654 375,631 938,060 6,926,565 $15,559,416 $1,992,060 5, 605,172 4,345,225 2,110,078 2,180,213 498,884 16, 731,632 3,094,744 1,874,699 782,897 173,308 329,106 6,254,754 $22,986,386 $240,501 389,769 0 463,259 665,503 1,164,000 6,008,708 8, 931,740 2,790,363 1,919,725 676,265 162,119 335,214 336,103 1,695 6,221,484 $15,153,224 $2, 091,395 5,900,593 2,655,529 2,548,785 1,570,132 586,388 15,352,822 3,092,654 1,927, 664 760,372 309,396 329,131 6,419,217 $21,772,039 $256,133 429,740 9 500,561 902,000 667,622 6,877,723 9,633,788 2,637,830 1,939,539 717, 005 169,015 334,162 414,534 1,319,522 7,531,607 $17,165,395 Continued . . . Continued from previous page . . . NET(EXPENSE)REVENUE Govemmental Activities Business-type Activities Total Primary Govemment Net Expense GENERAL REVENUES AND OTHER CHANGES IN NET POSITION Govemmental Activities - Property taxes Grants and contributions not restricted to specific programs Unrestrided investment eamings Gain on disposition of capital assets Transfers Total Govemmental Activities Business-type Activities - N Unrestricted investment eamings �' Gain on disposition of capital assets � Transfers Total Business-type Adivities Total Primary Govemment CHANGE IN NET POSITION Govemmental Activities Business-type Activities Total Primary Govemment 2004 `ZiI��7 City of Crystal CHANGES IN NET POSITION (Accrual Basis of Accounting) Last Ten Fiscal Years (unaudited) 2006 2007 2008 2009 2010 Table 2 2011 2012 2013 ($6,194,030) ($8,123,088) ($6,872,198) ($10,962,956) ($9,732,414) ($9,653,270) ($13,199,959) ($8,844,154) ($7,799,892) ($5,719,034) 611,232 284,710 577,190 958,251 871,428 (221,421) 453,454 947,719 (33,270) 1,112,390 ($5,582,798) ($7,838,378) ($6,295,008) ($10,004,705) ($8,860,986) ($9,874,691) ($12,746,505) _ ($7,896,435) ($7,833,162) ($4,606,644) $7,346,926 $7,955,577 $8,581,070 $9,107,674 $9,478,922 $9,854,813 $9,231,751 $9,318,013 $9,710,807 $9,561,519 2,055,580 1,495,373 1,401,110 1,757,264 1,821,550 2,074,108 1,616,214 1,618,291 1,478,220 1,472,223 1,292,440 1,126,365 1,635,607 2,411,120 1,773,833 991,016 1,025,552 1,036,201 540,883 96,678 8,505 17,500 40,399 18,94'I 11,690 28,242 21,072 38,413 45,139 47,080 (452,574) (143,963) (660,468) (342,240) (703,146) (184,508) 70,883 140,203 (177,580) (252,756) 10,250,877 10,450,852 10,997, 718 12,952,759 12,382,849 12, 763,671 11,965,472 12,151,121 11,597,469 10,924, 744 239,384 231,799 377,458 642,521 500,723 283,159 236,609 240,2'13 108,888 16,241 32,035 0 0 0 2,650 5,031 0 22,000 1,404 51,300 452,574 143,963 660,468 342,240 703,146 184,508 (70,883) (140,203) 177,580 252,756 723,993 375,762 1,037,926 984,761 1,206,519 472,698 165,726 122,010 287,872 320,297 $10,974,870 $10,826,6'14 $12,035,644 $13,937,520 $13,589,368 $13,236,369 $12,131,198 $12,273,131 $11,885,341 $11,245,041 $4,056,847 $2,327,764 $4,125,520 $1,989,803 $2,650,435 $3,110,401 ($1,234,487) $3,306,967 $3,797,577 $5,205,710 1,335,225 660,472 1,615,116 1,943,012 2,077,947 251,277 619,180 1,069,729 254,602 1,432,687 $5,392,072 $2,988,236 $5,740,636 $3,932,815 $4,728,382 $3,361,678 ($615,307) $4,376,696 $4,052,179 $6,638,397 General Fund - Committed - Compensated absences Unreserved Unassigned Total General Fund All Other Governmental Funds - Reserved Nonspendable - Prepaid items Restricted - Housing and redevelopment assistance MURL revolving fund Debt service 10% lawful gambling contrib. DWI-related enforcement, training, and education Committed - Housing and redevelopment assistance Cap. outlay - city wide Cap. outlay - street reconstruction Cap. outlay - replace. and renovation of city bldgs. Cap. outlay - police dept. Cap. outlay - f re dept. Cap. outlay - street maint. Assigned - Police dept. purposes Park and rec. dept. purposes Other purposes Unreserved, reported in - Special revenue funds Capital projects funds Total All Other Governmental Funds 2ooa 2oos City of Crystal FUND BALANCES OF GOVERNMENTAL FUNDS (Modified Accrual Basis of Accounting) Last Ten Fiscai Years (unaudited) 2006 2007 2008 2009 2010 2011 2012 Table 3 2013 $0 $0 $0 $0 $0 $0 $0 $869,801 $882,942 $840,514 8,466,198 6,552,752 6,654,021 6,846,050 6,713,244 7,405,422 7,613,583 0 0 0 0 0 0 0 0 0 0 6,645,169 6,514,525 6,862,599 $8,466,198 $6,552,752 $6,654,021 $6,846,050 $6,713,244 $7,405,422 $7,613,583 $7,514,970 $7,397,467 $7,703,113 $5,293,639 $5,154,628 $4,272,234 $5,179,892 $4,127,667 $5,252,033 $5,383,786 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 $0 $0 $0 0 0 78,455 2,468,311 29, 775 3,831,273 6,323 38,188 1, 595, 856 32,852 4,405,942 3,795 41.723 1, 593,243 35,651 5,440,681 1, 945 59,357 0 0 0 0 0 0 0 3,541,003 3,754,395 3,914,649 0 0 0 0 0 0 0 8,607,284 8,848,629 8,647,926 0 0 0 0 0 0 0 4,028,317 2,463,377 2,261,153 0 0 0 0 0 0 0 9,645,755 10,308,963 10,286,268 0 0 0 0 0 0 0 3,184,679 3,191,297 3,138,748 0 0 0 0 0 0 0 629,063 636,661 637,970 0 0 0 0 0 0 0 1,908,638 1,872,925 1,854,710 0 0 0 0 0 0 0 7,138 32,058 18,531 0 0 0 0 0 0 0 33,275 25,805 26,718 0 0 0 0 0 0 0 12,275 12,371 11,855 7,075,442 4,416,604 5,238,693 4,495,551 5,127,735 4,702,340 5,158,888 0 0 0 19,447,001 24,823,846 23,267,549 25,648,147 26,055,543 26,544,020 25,553,862 0 0 0 $31,816,082 $34,395,078 $32,778,476 $35,323,590 $35,310,945 $36,498,393 $36,096,536 $37,971,297 $37,226,649 $38,007,860 Note: GASB Statement No. 54 was implemented for 2011. 2011 and all subsequent years will be reported in compliance with GASB Statement No. 54. Prior years are reported as previously stated. REVENUES Propertytaxes Special assessments Licenses, permits and inspections Intergovernmental Charges for sales and/or services Administrative services provided to other funds Fines and forfeitures Interest Net increase (decrease) in fair value of investments Miscellaneous Total Revenues EXPENDITURES Current - General government Public safety Public works Parks and recreation Community development Capital outlay Debt service - Principal Interest and otherfees Total Expenditures EXCESS (DEFICIENCY) OF REVENUES OVER EXPENDITURES OTHER FINANCING SOURCES (USES) Issuance of bonds Issuance of refunding bonds Issuance of certificates of indebtedness Issuance of notes payable Payment to refunded bond escrow agent Refunded bonds redeemed Premium on debt issued Proceeds from sale of property and equipment Discount on debt issued Transfers in Transfers out Total Other Financing Sources (Uses) NET CHANGE IN FUND BALANCES Debt service as a percentage of noncapital expenditures 2004 2005 City of Crystal CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS (Modified Accrual Basis of Accounting) Last Ten Fiscal Years (unaudited) 2006 2007 2008 2009 Table 4 2010 2011 2012 2013 $7,334,443 $7,903,358 $8,552,947 $9,059,372 $9,433,491 $9,844,690 $9,200,159 $9,323,325 $9,714,591 $9,641,513 2,232,600 1,930,603 2,326,492 1,453,148 2,121,616 3,034,025 2,102,306 2,718,038 3,540,032 3,467,243 701,191 600,363 584,695 653,873 674,256 616,527 666,542 674,693 670,162 843,741 3,631,809 2,471,031 2,286,995 3,453,291 2,562,007 2,553,124 3,043,371 3,944,380 2,508,451 3,046,762 339,325 312,645 535,311 585,665 1,849,086 1,085,841 769,153 759,262 826,023 899,525 0 0 0 251,426 260,226 303,159 273,653 294,594 278,835 291,368 158,237 148,644 168,838 175,386 269,345 404,871 426,922 353,125 316,496 397,759 1,507,653 1,549,089 1,781,864 1,863,578 1,736,086 1,165,835 913,481 801,534 669,524 473,660 (215,213) (422,724) (146,258) 547,542 37,747 (202,228) 84,828 206,953 (142,882) (379,426) 287,364 900,148 451,991 253,485 287,955 1,036,102 484,731 379,636 450,274 502,878 15,977,409 15, 393,157 16,542,875 18,296,766 19,231,815 19,841,946 17,965,146 19,455,540 18,831,506 19,185,023 1,434,287 1,493,240 1,549,204 1,889,229 2,036,128 2,062,105 2,019,487 1,898,990 2,030,717 2,158,164 3,932,540 3,689,022 3,971,734 4,312,806 4,942,650 5,068,676 5,722,179 5,992,955 5,429,833 5,679,203 843,200 896,946 922,469 1,016,856 1,070,172 1,169,753 1,912,121 1,450,552 1,315,019 1,311,719 1,580,343 1,915,601 1,698,184 1,849,827 1,946,874 1,919,783 1,948,935 1,955,070 1,978,397 2,029,179 920,435 903,027 1,194,351 1,561,223 1,131,500 1,451,652 1,425,627 1,382,770 1,408,056 1,464,562 5,756,186 7,074,164 9,276,943 2,992,661 7,838,976 9,247,869 4,112,480 4,528,799 7,052,365 7,327,877 2, 601,378 1,484,191 2,248,238 1,641,041 2,464, 034 1,118,889 1,599,619 1,810,083 1,500,682 1,358,811 703,730 596,145 817,560 562,842 608,505 507,246 549,775 529,299 538,947 564,181 17,772,099 18,052,336 21,678,683 15,846,485 22,038,839 22,545,973 19,290,223 19,548,518 21,254,016 21,893,696 (1,794,690) (2,659,179) (5,135,608) 2,450,281 (2,807,024) (2,704,027) (1,325,077) (92,978) (2,422,510) (2,708,673) 1,991,000 3,835,000 1,855,000 0 2,190,000 4,564,778 1,000,222 1,705,000 2,635,000 3,630,000 464,000 0 0 0 0 0 1,204,778 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 58,501 0 0 0 (995,000) (940,000) 0 0 0 0 0 0 0 0 0 0 0 0 0 0 (1,204,778) 0 0 0 0 0 0 0 0 0 0 0 70,531 58,626 890,454 452,999 1,745,991 336,571 18,716 28,592 32,158 41,314 56,169 57,310 (14,100) (23,270) (10,516) 0 (1,069) (43,680) 0 (17,391) 0 0 2,871,037 3,924,152 2,632,348 10,006,272 2,974,226 987,463 1,135,907 1,646,572 2,865,486 895,350 (2,871,037) (3,924,152) (2,602,348) �10,055,961) (2,520,300) (953,500) (1,095,407) (1,506,369) (2,791,827) (845,756) 2,336,354 3,324,729 3,620,475 286,862 2,661,573 4,583,653 1,131,381 1,869,126 2,835,359 3,795,530 $541,664 $665,550 _ {$1,515,333) $2,737,143 ($145,451) $1,879,626 ($193,696) $1,776,148 $412,849 $1,086,857 24% 15% 20% 15% 17% 9% 13% 14% 13% 14% N N � City of Crystal TAXABLE AND ESTIMATED MARKET VALUES OF TAXABLE PROPERTY Last Ten Fiscal Years (unaudited) Real Property Fiscal Commercial Year Residential Appartments Industrial 2004 $1,074,183,200 $106,903,000 $128,108,800 2005 1,235,659,800 113,941,000 132,701,600 2006 1,404,411,200 114,698,000 153,640,900 2007 1,509,899,500 114,201,000 172,061,800 2008 1,557,426,100 112,622,000 � 190,934,900 2009 1,480,780,567 111,623,000 190,548,200 2010 1,359,108,500 109,744,000 177,950,600 2011 1,214,915,800 101,790,000 162,932,900 2012 1,019,240,647 100,691,000 161,022,000 2013 864,841,494 100,076,440 159,257,200 Source: Hennepin County Total Personal Taxable Property Market Value $12,242,400 $1,321,437,400 12,579,000 1,494,881,400 12,588,500 1,685,338,600 12,698,800 1,808,861,100 12,133,500 1,873,116,500 11,717,000 1,794,668,767 11,371,300 1,658,174,400 11,554,800 1,491,193,500 11,783,600 1,292,737,247 12,586,700 1,136,761,834 Tota I Direct Estimated Tax Actual Rate Market Value 41.451 $1,474,676,200 39.589 1,569,727,700 37.887 1,705,226,200 37.174 1,818,843,400 36.564 1,875,651,300 39.789 1,799,864,267 44.270 1,663,404,700 48.764 1,496,063,900 52.929 1,457,765,100 57.630 1,311,691,400 Table 5 Total Taxable Market Value as a Percent of Estimated Actual Market Value 89.61 % 95.23% 98.83% 99.45% 99.86% 99.71 % 99.69% 99.67% 88.68% 86.66% N � co City Direct Tax Rates Fiscal Basic G.O. Year Rate HRA Debt Service 2004 40.218 1.233 0.000 2005 38.334 1.255 0.000 2006 36.748 1.139 0.000 2007 36.059 1.115 0.000 2008 35.441 1.123 0.000 2009 38.288 1.501 0.000 2010 40.285 1.400 2.585 2011 44.529 1.418 2.817 2012 48.219 1.588 3.122 2013 52.520 1.480 3.630 City of Crystal PROPERTY TAX RATES - DIRECT AND OVERLAPPING GOVERNMENTS Last Ten Fiscal Years (unaudited) Total City Direct Tax Rate 41.451 39.589 37.887 37.174 36.564 39.789 44.270 48.764 52.929 57.630 Robbinsdale Hennepin Special ISD #281 County Districts * 34.258 47.324 7.488 29.989 44.172 7.382 28.489 41.016 6.998 28.750 39.110 7.310 27.243 38.571 7.397 27.214 40.413 7.154 28.621 42.640 8.138 34.387 45.840 9.172 32.810 48.231 9.523 32.347 49.461 10.089 Note: Information reflects total tax rates levied by each entity. Tax rates are expressed in terms of "net tax capacity." A property's tax capacity is determined by multiplying its taxable market value by a state-determined class rate. Class rates vary by property type and change periodically based on state legislation. ` Includes Metropolitan Council, Metropolitan Transit, Metropolitan Mosquito Control, Hennepin Parks, Park Museum, and the Hennepin County Regional Railroad Authority. Source: Hennepin County Total Crystal Robbinsdale Tax Debt Service ISD #281 Capacity Market Market Tax Rate Value Rate Value Rate 130.521 0.000 0.166 121.132 0.015 0.150 114.390 0.013 0.163 112.344 0.012 0.143 109.775 0.012 0.137 114.570 0.012 0.237 123.669 0.013 0.229 138.163 0.014 0.231 143.493 0.015 0.276 149.527 0.016 0297 Table 6 Total Overlapping Tax Rate 130.687 121.297 114.566 112.499 109.924 114.819 123.911 138.408 143.784 149.840 � � � Ciry of Crystal PRINCIPAL PROPERTY TAXPAYERS Current Year and Nine Years Ago (unaudited) Tax Taxpayer Type of Property Capacity' Crystal Shopping Center Assoc. Shopping Center $389,250 Lanel Financial Group Apa�tments 368,913 Crystal Village Apartments, LLC Apartments 268,789 Target Corporation Department Store 188,250 SuperValu, Inc. Grocery Store 161,250 Crystal Medical Building LLC Office/clinic 154,630 Smith-Sturm Investment Co. Apartments 133,263 Winpark One Two LLC Industrial 126,250 Bass Lake Road Retail Assoc., LLP Apartments 109,770 Industrial Equities Group, LLC Office/Warehouse 93,090 Crystal Gallery Developers Shopping Center Caliber-Chase Partners Apartments $1, 993, 455 Total City of Crystal Tax Capacity $15,865,985 2013 Percentage of Total Tax Rank Capacity 1 2.45% 2 2.33% 3 1.69% 4 1.19% 5 1.02% 6 0.97% 7 0.84% 8 0.80% 9 0.69% 10 0.59% Tax Capacity " $239,250 175, 913 265, 839 117, 250 149,250 Table 7 2004 Percentage of Total Tax Rank Capacity 2 1.45% 4 1.06% 1 1.61% 9 0.71 % 5 0.90% 130,038 6 0.79% 120,350 8 0.73% 102,572 10 0.62% 125,470 7 0.76% 238,813 3 1.44% 12.57% $1,664,745 $16,543,871 " Tax Capacity is computed by applying class rate percentages, specific to each type of property classification, against Taxable Market Value. Class rate percentages vary depending upon the rype of property. The formulas and class rates for converting Taxable Market Value into Tax Capacity represent a basic element of the Minnesota property tax system and are subject to annual revisions by the State. Source: Hennepin County 10.07% City of Crystal PROPERTY TAX LEVIES AND COLLECTIONS Last Ten Fiscal Years (unaudited) Current Fiscal Tax Tax Year Levy Collections 2004 $5,807,190 $5,740,509 2005 6,549,526 6,428,986 2006 7,016,240 6,879,114 2007 7,382,712 7,223,391 2008 7,612,282 7,448,064 2009 7,937,517 7,787,343 2010 8,849,440 8,675,169 2011 8,900,044 8,780,526 2012 9,258,402 9,139,252 2013 9,159,895 9,090,927 Percentage Delinquent of Levy Tax Collected Collections 98.85% $66,681 98.16% 120,540 98.05% 137,126 97.84% 159,321 97.84% 164,218 98.11 % 108,368 98.03% 145,618 98.66% 84,971 98.71 % 69,206 99.25% 0 Source: City of Crystal Finance Department records Total Total Collections Tax as a % of Collections Tax Levy $5,807,190 100.00% 6,549,526 100.00% 7,016,240 100.00% 7,382,712 100.00% 7,612,282 100.00% 7,895,711 99.47% 8,820,787 99.68% 8,865,497 99.61% 9,208,458 99.46% 9,090,927 99.25% Table 8 Delinquent Outstanding Taxes as Delinquent a % of Taxes Tax Levy $0 0.00% � �.��% 0 0.00% 0 0.00% 0 0.00% 41,806 0.53% 28,653 0.32% 34,547 0.39% 49,944 0.54% 75,006 0.82% Table 9 City of Crystal LEGAL DEBT MARGIN INFORMATION Last Ten Fiscal Years (unaudited) 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 Taxablemarketvalue-amounts $1,321,437 $1,494,881 $1,685,339 $1,808,861 $1,873,116 $1,794,668 $1,658,174 $1,491,193 $1,292,737 $1,136,761 expressed in thousands Debt limit (3% of taxable market value) $39,643,000 $44,846,000 $50,560,000 $54,266,000 $56,193,000 $53,840,000 $49,745,000 $44,736,000 $38,782,000 $34,103,000 Less debt applicable to debt limit: Total bonded debt 9,880,000 11,410,000 11,095,000 9,515,000 9,305,000 12,824,778 12,310,891 12,282,995 13,518,886 15,926,532 Deductions - Tax increment bonds 4,030,000 3,205,000 2,330,000 1,485,000 665,000 260,000 0 0 0 0 Special assessment bonds 5,305,000 5,395,000 6,265,000 5,795,000 6,675,000 9,525,000 8,915,000 9,880,000 11,770,000 14,191,612 9,335,000 8,600,000 8,595,000 7,280,000 7,340,000 9,785,000 8,915,000 9,880,000 11,770,000 14,191,612 Total debt applicable to debt limit 545,000 2,810,000 2,500,000 2,235,000 1,965,000 3,039,778 3,395,891 2,402,995 1,748,886 1,734,920 N N � Legal debt margin Total debt applicable to the debt limit as a percentage of the debt limit $39,098,000 $42,036,000 $48,060,000 $52,031,000 $54,228,000 $50,800,222 $46,349,109 $42,333,005 $37,033,114 $32,368,080 1.4% 6.3% 4.9% 4.1 % 3.5% 5.6% 6.8% 5.4% 4.5% 5.1 % Source: City of Crystal Finance DepaRment records � � w Fiscal Year 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 G.O. Bonds $545,000 2,810,000 2,500,000 2,235,000 1,965,000 3,039,778 3,395,891 2,402,995 1,741,221 1,734,920 City of Crystal RATIOS OF OUTSTANDING DEBT BY TYPE Last Ten Fiscal Years (unaudited) Governmental Activities G.O. G.O. Tax Special Increment Assessment Bonds Bonds $4,030,000 $5,305,000 3,205,000 5,395,000 2,330,000 6,265,000 1,485,000 5,795,000 665,000 6,675,000 260,000 9,525,000 0 8,915,000 0 9,880,000 0 11,768,751 0 14,191,612 G.O. N otes Payable $64,239 7,182 0 0 0 0 46,100 46,100 35,081 0 Business Type Activities $0 0 0 0 0 0 0 0 0 0 Total Primary Government $9,944,239 11,417,182 11,095,000 9,515,000 9,305,000 12,824,778 12,356,991 12,329,095 13,545,053 15,926,532 Table 10 Percentage Percentage Of Taxable Of Market Personal Per Value Income Capita 0.75% 0.89% $436 0.76% 1.00% 505 0.66% 0.92% 497 0.53% 0.77% 430 0.50% 0.73% 420 0.71 % 1.10% 583 0.75% 1.02% 558 0.83% 0.97% 556 1.05% 1.03% 604 1.40% 1.21% 710 Sources: Outstanding Debt - City of Crystal Finance Department Records Taxable Market Value - Hennepin County Assessor Department Personal income - U.S. Department of Commerce, Bureau of Economic Analysis Population - U.S. Census Bureau for census years and estimates by Metropolitan Council for non-census years N N � Fiscal Year 2004 2005 2006 2007 2��8 2009 2010 2011 2012 2013 City of Crystal RATIOS OF GENERAL BONDED DEBT OUTSTANDING Last Ten Fiscal Years (unaudited) G.O. Bonds $545, 000 2,810,000 2,500,000 2,235,000 1, 965, 000 3,039,778 3,395,891 2,402,995 1,741,221 1, 734,920 Less Amount Restricted for Debt Service $178,154 309, 084 290,175 313,513 265, 576 272, 006 272, 312 282, 456 291,284 294,217 Total $366, 846 2, 500, 916 2, 209, 825 1, 921,487 1,699,424 2, 767, 772 3,123,579 2,120, 539 1,449,937 1,440,703 Table 11 Percentage of Taxable Market Value Of Per Property Capita 0.03% $15.94 0.17% 109.54 0.13% 97.80 0.11% 86.14 0.09% 76.77 0.15% 124. 86 0.19% 141.89 0.14% 95.73 0.11 % 65.41 0.13% 64.27 Note: Details regarding the city's outstanding debt can be found in the notes to the financial statements. Sources: Property value data is from Table 5- Taxable and Estimated Market Values Of Taxable Property Population data is from Table 13 - Demographic and Economic Statistics Table 12 City of Crystal DIRECT AND OVERLAPPING GOVERNMENTAL ACTIVITIES DEBT As Of December 31, 2013 (unaudited) Net General Obligation Percentage Amount Bonded Debt Applicable To Applicable To Jurisdiction Outstanding Government * Government Direct - City of Crystal Overlapping - Robbinsdale ISD #281 Hennepin County Hennepin Suburban Park District Hennepin Regional RR Authority Metropolitan Council / Transit Total $15, 926, 532 152,926,696 723,264,582 54,166,123 37,350,216 158, 664, 771 1,126,372,388 $1,142,298,920 100.00% 17.20% 0.95% 1.30% 1.30% 0.44% $15,926,532 26,303,392 6,871,014 704,160 485,553 698,125 35,062,244 $50,988,776 * Overlapping governments are those that coincide, at least in part, with the geographic boundaries of the City of Crystal. This schedule estimates the portion of the outstanding debt of those overlapping governments that is borne by the residents and businesses of the City of Crystal. This process recognizes that, when considering the City of Crystal's ability to issue and repay long-term debt, the entire debt burden borne by the residents and businesses should be taken into account. The percentage of overlapping debt is estimated using tax capacity. Applicable percentages were estimated by determining the portion of each overlapping governmenYs tax capacity within the City of Crystal's boundaries and dividing it by that government's total tax capacity. Source: City of Crystal Finance Department records and Hennepin County � r.� rn Fiscal Year 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 Population 22,831 22,595 22, 306 22,138 22,167 22,014 22,151 22,168 22,417 22,417 City of Crystal DEMOGRAPHIC AND ECONOMIC STATISTICS Last Ten Fiscal Years (unaudited) Per Capita Personal Income $48,781 50,469 53,872 56,006 57, 693 52,999 54,949 57,476 58,898 58,898 Total City Personal Income $1,113,719,011 1,140, 347, 055 1,201,668,832 1,239,860,828 1,278,880,731 1,166,719, 986 1,217,175,299 1,274,127,968 1,320,316,466 1, 320, 316,466 District-Wide School Enroliment 13,150 13,121 12,924 12,590 12,106 11,644 11, 662 11, 734 11,720 11,827 Table 13 Unemployment Rate 5.9% 5.0% 5.1 % 6.1 % 6.7% 10.4% 9.3% 8.2% 5.9% 5.2% Sources: Population - U.S. Census Bureau for census years and estimates by Metropolitan Council for non-census years. The current year is reported same as the prior year due to data not yet being available at the time this report was prepared. Per capita personal income - U.S. Department of Commerce, Bureau of Economic Analysis. The per capita personal income used is that for Hennepin County, MN, in which the City resides. It is the smallest region applicable to the City that this information is available for. The current year is reported same as the prior year due to data not yet being available at the time this report was prepared. Total City personal income - These estimated amounts are derived by multiplying the per capita personal income amount by the City's population for each applicable year. District-wide school enrollment - Counts are provided by Robbinsdale ISD #281 as of December 31 of each year. ISD #281 serves households in all or parts of Crystal, Brooklyn Center, Brooklyn Park, Golden Valley, New Hope, Plymouth and Robbinsdale. Unemployment rate - Minnesota Department of Employment and Economic Development. Rates are an adjusted yearly average. N N � Employer Volunteers of America - Crystal Care Center Cub Foods Target City of Crystal RFG Distributing Kilmer Electric Co., Inc. Metropolitan Transportation Network Inc. Almsted's Crystal Super Value Buffalo Wild Wings McDonald's Qwest (now CenturyLink) Timesavers, Inc. Thrift-Way Supermarket Featherlite Exhibits Welis Fargo City of Crystal PRINCIPAL EMPLOYERS Current Year and Nine Years Ago (unaudited) 2013 Percentage Of Total Number Of City Empioyees Rank Employment 200 1 4.78% 200 2 4.78% 185 3 4.42% 102 4 2.44% 98 5 2.34% 68 6 1.62% 68 7 1.62% 63 8 1.51 % 52 9 1.24% 45 10 1.08% Tabie 14 2004 Percentage Of Total Number Of City Employees Rank Employment 170 3 3.19% 190 2 3.57% 220 1 4.13% 93 5 1.75% 75 7 115 80 65 40 27 4 6 8 9 10 1,081 25.83% 1,075 Estimated Total Employment 4,185 Sources: Principal employers are a result of telephone surveys of employers by Springsted, Inc., in conjunction with city bond sales. Estimated Total Employment is per the Minnesota Department of Employment and Economic Development web site. 1.41 % 2.16% 1.50% 1.22% 0.75% 0.51 % 20.19% 5,322 Table 15 City of Crystal FULL-TIME CITY GOVERNMENT EMPLOYEES BY FUNCTION Last Ten Fiscal Years (unaudited) Function 2004 2005 2006 2007 2008 2009 2�7i0 2011 2012 2013 General Government 11 11 12 12 12 12 11 11 11 11 Public Safety - Police - Officers 25 27 27 27 29 29 28 30 30 28 Civilians 6 6 6 7 8 7 6 8 6 6 Public Works - Engineering 3 3 3 3 3 3 3 3 3 3 Maintenance 9 9 9 9 9 9 8 7 8 8 Parks and Recreation - Park maintenance 5 5 6 6 6 6 6 6 6 6 �' Recreation 5 4 5 5 5 5 5 5 5 5 N � Community Development 7 7 7 7 7 7 7 7 6 6 Utilities - Water / Sanitary Sewer / Storm Drainage 8 8 8 8 8 8 9 9 8 9 79 80 83 84 87 86 83 86 83 82 Source: City of Crystal Finance Department records Table 16 City of Crystal OPERATING INDICATORS BY FUNCTION Last Ten Fiscal Years (unaudited) Function 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 General Government - Administration - Employee recruitments * ' ` 15 13 15 11 16 19 19 Licenses issued 968 1,006 945 952 1,018 1,110 1,238 1,249 1,300 1,394 Public Safety - Police - Calls for service 25,716 25,833 29,047 24,427 29,395 30,007 30,681 32,464 31,878 31,624 Citations issued * ' * 2,843 4,651 5,548 5,369 6,199 6,133 6,622 Criminal cases investigated ` ` 1,220 1,090 1,848 1,490 1,426 1,261 1,771 1,123 Total arrests 1,026 1,066 1,014 1,050 1,158 1,265 1,081 1,184 1,226 925 Animal control incidents 780 694 921 932 783 709 334 501 471 469 Doglicensesissued * * * 476 455 350 344 315 287 219 Fire (West Metro Fire-Rescue District) Callsforservice ' ' * 1,052 977 1,346 1,451 1,641 1,349 1,448 Inspections/re-inspections, plan reviews and consultations * * " 821 792 768 796 899 734 747 �' Public Works - � Miles of streets sealcoated 12 0 0 4 0 4 5 12 6 5 Miles of streets reconstructed - 6 4 5 0 5 7 0 4 6 6 Phase of 16-phase street project > Phase 6 Phase 7 Phase 8 Phase 9 Phase 10 Phase 11 Phase 12 Phase 13 Parks and Recreation - Recreation program participants ` ' ' 8,195 8,377 8,375 8,459 9,301 9,132 10,600 No. of teams in team sports * * ` 121 129 155 172 195 221 212 No. of participants in special events • ' " 3,000 2,548 3,822 4,040 4,647 4,142 3,897 Park facility permits ' ' " 262 166 162 228 208 185 229 Community Center permits * * * 746 768 672 659 600 657 684 Pool attendance * * * 43,345 43,658 33,413 35,681 33,220 31,127 30,009 Community Development - Permit inspections * ' ` 2,542 3,230 3,065 2,664 2,331 2,350 2,868 Code enforcement incidents * * * 1,287 1,301 1,604 1,434 1,378 1,319 1,332 Rental housing - no. of licensed units ' ' ' 1,901 2,394 2,343 2,431 2,457 2,575 2,788 Point of sale inspections/re-inspections * " ` 665 664 726 416 424 385 468 Planning Commission applications * * ' 15 18 19 8 18 8 16 Utilities - Water system - Average residential consumption (million gallons / day) 1.57 Mg/d 1.50 Mg/d 1.52 Mg/d 1.58 Mg/d 1.26 Mg/d 1.53 Mg/d 1.45 Mg/d 1.33 Mg/d 1.46 Mg/d 1.34 Mg/d ' Data is not readily available for prior years. It will be presented on a prospective basis. Source: Various city departments Table 17 City of Crystal CAPITAL ASSET STATISTICS BY FUNCTION Last Ten Fiscal Years (unaudited) Function 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 Public Safety - Police - Number of stations 1 1 1 1 1 1 1 1 1 1 Public Works - Street maintenance - Miles of city street 92 92 92 92 92 92 92 92 91 91 Parks and Recreation - Recreation - Number of park acres 243 243 243 243 243 243 243 244 253 253 Number of parks 28 28 28 2g 2g 2g 2g 2g 2g 2g Number of parks with playground apparatus 19 19 19 19 19 19 19 20 20 20 Number of tennis courts 13 13 13 13 13 13 13 13 12 12 Number of supervised ice skating rinks - Hockey 4 4 4 4 4 4 4 4 4 4 General use 3 3 3 3 3 3 3 3 3 3 Number of baseball fields 2 2 2 2 2 2 2 2 2 2 � Number of softball fields - w m Reservable 16 16 16 16 16 16 16 16 16 15 Non-reservable 7 7 7 7 7 7 7 7 7 7 Number of soccer fields 1 1 1 1 1 1 1 2 2 2 Number of skateboard parks 0 0 1 1 1 1 1 1 1 1 Community Center - Number of centers 1 1 1 1 1 1 1 1 1 1 Waterslide / swimming pool - Number of facilities 1 1 1 1 1 1 1 1 1 1 Utilities - Water system - Miles of water main (owned by city) 90 90 90 90 90 90 90 90 90 90 Number of service connections 7,796 7,872 7,898 7,861 7,868 7,864 7,885 7,888 7,803 7,812 Number of fire hydrants 808 808 808 808 808 808 809 819 820 821 Sewer system - Miles of sanitary sewer 87 87 87 87 87 g7 g7 g7 g7 g7 Number of service connections 7,820 7,820 7,820 7,892 7,913 7,912 7,910 7,911 7,821 7,827 Number of lift stations 7 7 7 7 7 7 7 7 7 7 Storm drainage system - Miles of storm sewer 50 54 56 58 58 60 64 64 66 74 Number of lift stations 1 1 1 1 1 1 1 1 � 1 Note: No capital asset indicators are available for the general government and community development functions. Source: Various city departments Back Cover CITY OF CRYSTAL Hennepin County, Minnesota COMMUNICATIONS LETTER Year Ended December 31, 2013 CITY OF CRYSTAL � ►�� . , � �, � . . � � � . � � . . . SIGNIFICANT DEFICIENCY ....................................................................................................... 3 REQUIRED COMMUNICATION ................................................................................................ 4 FINANCIALANALYSIS ................................................................................................................ 7 ��' �x�aer-� �clvicc. Whe� y�u r��ec� it.,,4 REPORT ON MATTERS IDENTIFIED AS A RESULT OF THE AUDIT OF THE FINANCIAL STATEMENTS Honorable Mayor and Members of the City Council City of Crystal Crystal, Minnesota In planning and performing our audit of the basic financial statements of the City of Crystal, Minnesota, as of and for the year ended December 31, 2013, in accordance with auditing standards generally accepted in the United States of America, we considered the City's internal control over financial reporting (internal control) as a basis for designing our auditing proced�ures that are appropriate in the circumstances for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the City's internal control. Accordingly, we do not express an opinion on the effectiveness of the City's internal control. Our consideration of internal control was for the limited purpose described in the preceding paragraph and was not designed to identify a11 deficiencies in internal control that might be material weaknesses or significant deficiencies and, therefore, material weaknesses or significant deficiencies may exist that were not identified. However, as discussed below, we identified certain deficiencies in internal control. that we consider to be a material weakness and a deficiency that we consider to be a signi�cant deficiency. A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent or detect and correct misstatements on a timely basis. A material weakness is a deficiency, or combination of deficiencies in internal control, such that there is a reasonable possibi]ity that a material misstatement of the City's financial statements will not be prevented or detected and corrected on a timely basis. A signi�cant deficiency is a de�ciency, or combination of deiiciencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance. The significant deficiency identified is stated within this letter. The accompanying memorandum also includes �nancial analysis and recommendations for improvement of accounting procedures and internal control measures that came to our attention as a result of our audit of the financial statements of the City, for the year ended December 31, 2013. The matters discussed herein were considered by us during our audit and they do not modify the opinion expressed in our Independent Auditor's Report dated May 13, 2014, on such statements. This communication is intended solely for the informaiion and use of the management, the City Council, others within the City and state oversight agencies and is not intended to be and should not be used by anyone other than these specified parties. �'�h ,� ��+-., r ��.�,.0 � KERN, DEWENTER, VIERE, LTD. Minneapolis, Minnesota May 13, 2014 2 CITY OF CRYSTAL SIGNIFLCANT DEFTCIENCY December 31, 2013 LACK OF SEGREGATION OF ACCOUNTING DUTIES During the year ended December 31, 2013, the City had a lack of segregation of accounting duties due to a limited number of office employees. Management is aware of this condition and has taken certain steps to compensate for the lack of segregation, However, due to the small accounting staff needed to handle all of the accounting duties, the cost oi obtaining desirable segregation oi accounting duties can often exceed benefits which could be derived. Management has determined a complete segregation of accounting duties is impractical to correct. 3 CITY OF CRYSTAL REQUIRED C01VIlVIUNICATION December 31, 2013 We have audited the basic financial statements of the City for the year ended December 31, 2013, and have issued our report dated May 13, 2014. Professional standards require that we provide you with the following information related to our audit. OUR RESPONSIBILITY UNDER AUDITING STANDARDS GENERALLY ACCEPTED IN THE UNITED STATES OF AMERICA As stated in our engagement letter, our responsibility, as described by pro%ssional standards, is to express an opinion about whether the financial statements prepared by management with your oversight are fairly presented, in all material respects, in conformity with accounting principles generally accepted in the United States of America. Our audit of the fmancial statements does not relieve you or management of your responsibilities. As part of our audit, we considered the internal control of the City. Such considerations were solely for the purpose of determining our audit proced�ures and not to provide any assurance concerning internal control. As part of obtaining reasonable assurance about whether the financial statements are free of material misstatement, we performed tests of the City's compliance with certain provisions of laws, regulations, contracts and grant agreements. However, the objective of our tests was not to provide an opinion on compliance with such provisions. Our responsibility for the supplementary information accompanying the financial statements, as described by professional standards, is to evaluate the presentation of the supplementary information in relation to the financial statements as a whole and to report on whether the supplementary information is fairly stated, in all material respects, in relation to the fmancial statements taken as a whole. PLANNED SCOPE AND TIMING OF THE AUDIT An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements; therefore, our audit involved judgment about the number of transactions to be examined and the areas to be tested. Our audit included obtaining an understanding of the City and its environment, including internal control, sufficient to assess the risks of material misstatement of the financial statements and to design the nature, timing and extent of further audit procedures. Material misstatements may result from (1) errors, (2) fraudulent financial reporting, (3) misappropriation of assets or (4) violations of laws or governmental regulations that are attributable to the City or to acts by management or employees acting on behalf of the City. QUALITATIVE ASPECTS OF ACCOUNTING PRACTICES Management is responsible for the selection and use of appropriate accounting policies. The significant accounting policies used by the City are described in Note 1 to the financial statements. The City has adopted the provisions of the Governmental Accounting Standards Board (GASB) Statement No. 65, Iterns P�eviously Reported as Assets and �iabilities. We noted no transactions entered into by the City during the year for which there is a lack of authoritative guidance or consensus. All signi�cant transactions have been recognized in the proper period. � CITY OF CRYSTAL REQUIRED C01VIlVIUNICATION December 31, 2013 QUALITATIVE ASPECTS OF ACCOUNTING PRACTICES Accounting estimates are an integral part of the financial statements prepared by management and are based on management's knowledge and experience about past and current events and assumptions about future events. Certain accounting estimates are particularly sensitive because of their significance to the financial statements and because of the possibility that future events affecting them may differ significantly from those expected. The most sensitive estimates affecting the financial statements were: Depreciation — The City is currently depreciating its capital assets over their estimated useful lives, as determined by management, using the straight-line method. Expense/Expenditure A1location — Certain expenses/expenditures are allocated to functions based on an estimate of the benefit to that particular function. Examples are salaries, benefits, administrative charges and supplies. Net Other Post Employment Benefits (OPEB) Obligation — This liability is based on an actuarial study using estimates of future obligations of the City for post employment benefits. The disclosures in the financial statements are neutral, consistent and clear. DIFFICULTIES ENCOUNTERED IN PERFORMING THE AUDIT We encountered no difficulties in dealing with management in performing and completing our audit, CORRECTED AND UNCORRECTED MISSTATEMENTS Professional standards require us to accumulate all known and likely misstatements identified during the audit, other than those that are clearly trivial, and communicate them to the appropriate level of management. One adjustment was identi�ed; however, management has determined the effects of this adjustment are immaterial to the �nancial statements taken as a whole. I 7[.Y«'J:7 �1 �►l I D1►111�.`1ii�I1111: i►l %\►/_�!� �►I i 51►1111 For purposes of this letter, a disagreement with management is a�nancial accounting, reporting or auditing matter, whether or not resolved to our satisfaction that could be significant to the imancial statements or the auditor's report. We are pleased to report that no such disagreements arose during the course of our audit. MANAGEMENT REPRESENTATIONS We requested certain representations from management which were provided to us in the management representation letter. 5 CITY OF CRYSTAL REQUIRED C01VIlVIUNICATION December 31, 2013 MANAGEMENT CONSULTATIONS WITH OTHER INDEPENDENT ACCOUNTANTS In some cases, management may decide to consult with other accountants about auditing and accounting matters, similar to obtaining a"second opinion" on certain situations. If a consultation involves application of an accounting principle to the City's financial statements or a determination of the type of auditor's opinion that may be expressed on those statements, our professional standards require the consulting accountant to check with us to determine that the consultant has a11 the relevant facts. To our knowledge, there were no such consultations with other accountants. OTHER AUDIT FINDINGS OR ISSUES We generally discuss a variety of matters, including the application of accounting principles and auditing standards, with management each year prior to retention as the City's auditors. However, these discussions occurred in the normal course of our professional relationship and our responses were not a condition to our retention. C�71Y:i�i:�U%rIY11�:7: With respect to the supplementary information accompanying the financial statements, we made certain inquiries of management and evaluated the form, content and methods of preparing the information to determine that the information complies with accounting principles generally accepted in United States of America, the method of preparing it has not changed from the prior period and the information is appropriate and complete in relation to our audit of the financial statements. We compared and reconciled the supplementary information to the underlying acco�unting records used to prepare the financial statements or to the financial statements themselves. G CITY OF CRYSTAL FINANCIAL ANALYSIS December 31, 2013 The following pages provide graphic representation of select data pertaining to the financial position and operations of the City for the past five years. Our analysis of each graph is presented to provide a basis for discussion. GENERAL FUND At December 31, 2013, the General Fund balance was $ 7,703,113, an increase of 4.1 %, or $ 305,646, from the 2012 balance. The components of fund balance for the General Fund and fund balance as a percent oi subsequent years' budget are depicted in the graphs below and on the following page. �s,000,000 ��,000,000 $6,000,000 $5,000,000 $4,000,000 �3,000,000 $2,000,000 $1,000,000 $- Fund Balance - General Fund 2009 2010 2011 2012 2013 � � Unassigned ■ Committed for Compensated Absences 7 CITY OF CRYSTAL FINANCIAL ANALYSIS December 31, 2013 GENERAL FUND The City adopted a budget for 2014 which called for an increase in expenditures and other �nancing uses of 2.91 %, ar$ 354,�65. Fund balance at December 31, 2013 as a percentage of this budget is shown in the chart below. �o�io 6s�io 6o�io ss�io so�io 4s�io 40% 35% 30% 25% 20% 15% 10% 5% 0% General Fund Balance as a Percentage of Subsequent Year's Budget �� 2009 2010 2011 2012 2013 �^�Unassigned Fund Balancc �Tota] Fund Balance �3 CITY OF CRYSTAL FINANCIAL ANALYSIS December 31, 2013 GENERAL FUND For the 2013 operating year, the City Council approved a final budget that would utilize $ 67,3'70 of the General Fund reserves. Revenues exceeded expectations by 2% and expenditures were 1% under budget. This resulted in a positive variance of $ 373,016 from budgeted expectations. The largest components of the revenue budget variances were in licenses and permits, where building activity during the year increased. The largest component of the expenditure variance was in parks and recreation expenditures, which included less activity due to a late spring and early winter in 2013. E CITY OF CRYSTAL FINANCIAL ANALYSIS December 31, 2013 GENERAL FUND The chart below shows the City's revenues by source for ihe las� five years. Total revenues of $ 12,692,947 was at the highest 1eve1 for the five years shown. Intergovernmental revenue increased $ 264,392 due to $ 200,000 in fire pension aid shown as pass-through in prior years, as well as disaster aid that was received due to a storm in June. Licenses and permits increased $ 173,579 due to an increase in building activity during the year, as a result of rebounding. $13,000,000 $12,000,000 $11,000,000 $10,000,000 $9,000,000 $8,000,000 $7,000,000 $6,000,000 $5,000,000 $4,000,000 $3,000,000 $2,000,000 $1,000,000 $- ■ Other ❑ Charges for Services 0 Lieenses and Permits � Intergovernmental ❑ Propertv Taxes 2009 $922,119 585,266 616,527 2,309,705 7.464.014 i General Fund Revenues 2010 $1,02�4,860 584,282 666,542 1,876,132 7,807,491 2011 $1,083,288 664,798 674,693 1,885,103 7,945,4�F7 2012 $1,018,109 654,918 670,162 1,754,976 8.284.782 2013 $931,31�4 686,100 843,741 2,019,368 8.211.693 l� CITY OF CRYSTAL FINANCIAL ANALYSIS December 31, 2013 GENERAL FUND The pie charts below show the breakdown of expenditures in the General Fund for the last two years. With the exception of a small shift between community development and public safety expenditures, the allocation of expenditures by function did not change between 2012 and 2013. Parks an Public 10 Parks a Public 10 2013 General Fund Expenditures Commmiity Devclopment �ral Government 18% Safety 49 % 2012 General Fund Expenditures Community 1�eve]opmenY il Government 18% Safety 48% ll CITY OF CRYSTAL FINANCIAL ANALYSIS December 31, 2013 GENERAL FUND General Fund expenditures increased $ 486,200, or 4.4%, from the prior year. Public safety expenditures increased $ 253,382 due to a change in the recarding of fire pension aid paid to the relief association in 2013. �Iz,000,000 $11,000,000 $10,000,000 $9,000,000 $8,000,000 $7,000,000 $6,000,000 $5,000,000 $4,000,000 $3,000,000 $2,000,000 $1,000,000 $- ■ Community Develop� 0 Parks and Recreation � Public Works ❑ Public Safety � General Government General Fund Expenditures 2009 2010 I 2011 2012 $600,942 $629,194 b625,022 $620,853 1,914,599 1,931,002 1,942,068 1,966,259 1,096,556 1,058,743 1,100,042 1,082,726 5,035,317 5,051,570 � 5,304,852 5,364,598 2,057,500 2,017,487 � 1,892,158 2,023,314 2013 $630,825 1,151,659 5,617,980 2,120,666 IZ CITY OF CRYSTAL FINANCIAL ANALYSIS December 31, 2013 ENTERPRISE FUNDS Activity for the City's Wa�er Fund is shown below. Waier operating revenues decreased $ 136,179, as a result of the increase in rates being offset by a decrease in consumption. Operating expenses decreased $ 76,9'77 from 2012, due to the decrease in consumption. The Water Fund ended the year with a net loss of $ 34,480; this net income was the lowest in the five years shown. Operating Revenue Operating Expense Operating Income (Loss) Net Nonoperating Revenue Net Income Net Income as a Percent of Operating Revenue Stat�Wide Average Water Enter rise Fund O erations 2009 2010 2011 2012 2013 $ 2,994,570 $ 2,741,750 $ 2,715,722 $ 2,961,432 $ 2,825,253 2,6?8,538 2,482,146 2,930,591 3,094,744 3,017,767 316,032 259,604 (214,869) (133,312) (192,514) 112,426 98,462 272,764 191,312 158,034 $ 428,458 $ 358,066 $ 57,895 $ 58,000 $ (34,480) 14% 13% 2% 2% -1% 9% 6% 10% 16% N/A 13 CITY OF CRYSTAL FINANCIAL ANALYSIS December 31, 2013 ENTERPRISE FUNDS Sewer operating revenues increased $ 24,081 and operating expenses increased $ 51,766. The Sanitary Sewer Fund had the third largest operating income in the five years presented. However, the fund had the least net nonoperating revenue in the five years presented due to a decrease in interest income and change in market value of investments in 2013. Sanitary Sewer Enterprise Fund O erations 2009 2010 2011 2012 2013 Operating Revenue Operating Expense Operating Income (Loss) N�ct Nonoperating Revenue Net Income (Loss) Net Income (Loss) as a Percent of Operating Revenue Sta�e-Wide Average $ 1,894,028 $ 1,866,096 $ 1,924,723 $ 1,923,ll3 $ 1,947,194 2,073, 867 1, 934,554 1,928,975 1, 874,699 1,926,465 �179,g39� �6g,4ss� �a,asz� 4s,�i4 zo,�29 116,847 113,154 120,840 54,ll8 24,934 $ (62,992) $ 44,696 $ 116,588 $ 102,532 $ 45,663 -3% 2% 6°/a 5°/a 2°/a 7% 6% 5% 7% N/A 14 CITY OF CRYSTAL FINANCIAL ANALYSIS December 31, 2013 ENTERPRISE FUNDS Storm Draina e Enter rise Fund O erations 2009 2010 20ll 2012 2013 Operating Revenue Operating Expense Opexating Tn¢ome (Lose) Net Nonoperating Revenue Net Income (Loss) Net Income (Loss) as a Percent of $ 644,705 $ 648,338 $ 656,761 $ 677,619 $ 724,887 1,010,183 491,757 600,371 7'78,031 69'7,159 (365,478� 156,58L 56,390 (100,412) 27,�28 52,361 64,198 391,'782 12,449 (44,844) $ (313,117) $ 220,779 $ 448,172 $ (87,9b3) $ (17,116) Operating Revenue -49% 34% 68% -13% -2% State-Wide Average N/A NIA N/A NlA N/A Street Li hts Enter rise Fund O erations 2009 2010 2011 2012 2013 Operating Revenue Operating fixpense Operating Income (Loss) N�tNonoperati�g Bav¢nne (Expenem�) Net Income (Loss) Net Income (Loss) as a Percent of Operating Revenue State-Wide Average $ 154,708 $ 162,382 $ 163,012 $ 162,492 $ 169,197 1'70,521 148,627 186,991 173,308 252,7'79 �is,gl3> 13,�ss �23,9�9> �io,si6� �g3,sg2� 16,971 18,259 16,�33 8,414 (55,253) $ 1,158 $ 32,014 $ (7,446) $ (2,402) $ (138,835) 1% 20% -5% -1% -82% N/A NlA N/A N/A N/A 15 CITY OF CRYSTAL FINANCIAL ANALYSIS December 31, 2013 PER CAPITA REVENUES AND EXPENDITURES Below is a chart of the per capita trends in selected revenue and expendiiure line items. In 2013, the intergovernmental revenue increased per capita due to the City recording the revenue received and related expense for fire relief pension aid received from the State of Minnesota. Since 2010 when property tax revenue received per capita increased as the cost of funding City services shifted from state to local, property taxes per capital has remained consistent. Current and total expenditures per capita have remained relatively consistent in the i'ive years presented. Per Ca ita Trends 2009* 20]0** 2011*** 2012*** 2013**** Intergovernmental Revenues Per Capita $ 115 $ 137 $ 178 $ 113 $ 136 Property Taxes Per Capita ***** 359 415 421 Tota1 Revenue Per Capita 895 8ll 878 Expenditures Per Capita (Less Debt Service and Capital) 527 588 572 Total Expenditures Per Capita 1,017 871 882 Population 22,167 22,151 22,168 * 2009 per capita data uses Metropolitan Council population estimates ** 2010 per capita data uses the 2010 Census data from Metropolitan Council *** 2011 and 2012 per capital data uses 2011 population forecast from the Metropolitan Council **** 2013 per capita data uses 2012 population forecast from the MeYropoliYan Council ***** Property taxes exclude tax increments 421 849 549 959 22,168 414 856 564 977 22,417 � CITY OF CRYSTAL FINANCIAL ANALYSIS December 31, 2013 TAX CAPACITY, CERTIFIED TAX LEVY, AND CITY TAX RATE The chart below graphs the tax capacity, certified tax levy and City tax rate for 2009 through 2013. The tax capacity is based on total tax capacity, prior to adjustments for captured Tax Increment Financing (TIF) and fiscal disparities. The certified tax levy amount is also prior to fiscal disparity adjustments. With declining market values, the City's tax capacity declined from 2012 to 2013 by $ 1,582,711, or 10.7%. With a declining tax capacity, despite the decreased levy, the City's tax capacity rate rose to 56.2%. $24,OOQ000 $21,000,000 $18,000,000 � > � � y� $15,000,000 H '� � $12,OOO,D00 t. � U �, $9,000,000 .� � t�. � C� $6,000,000 Ye � E-+ $3,000,000 $- Tax Capacity, Certified Levy and City Tax Rate 2009 2010 2011 2012 2013 - Tax Capaeity �Certified Tax Levy �-�---City Tax Rate * Tax capacity and city tax rate obtained from the League of Minnesota Cities 65% 55% 45% C'� 35% � � � � 25% � � 15% 5% -5% 17 CITY OF CRYSTAL Hennepin County, Minnesota REPORT ON LEGAL COMPLIANCE For the Year Ended December 31, 2013 CITY OF CRYSTAL TABLE OF CONTENTS REPORT ON LEGAL COMPLIANCE .................................................................................. SCHEDULE OF FINDINGS AND RESPONSES ONLEGAL COMPLIANCE ........................................................................................................ 2 �',�aert advice. When y�u aac�d it.5,`° REPORT ON LEGAL COMPLIANCE INDEPENDENT AUDITOR'S REPORT Honorable Mayor and Members of the City Council City of Crystal Crystal, Minnesota We have audited, in accordance with auditing standards generally accepted in the United States of America, the financial statements of the governmental activities, the business-type activities and each major fund and the aggregate remaining fund information of City of Crystal, Minnesota as of and for the year ended December 3 l, 2013, and the related Notes to the Financial Statements, and have issued our report thereon dated May 13, 2014. The Minnesota Legal Co�npliance Audit Guide fo� Political Subdivisions, promulgated by the State Auditor pursuant to Minn. Sat. § 6.65, contains seven categories of compliance to be tested: contracting and bidding, deposits and investments, conflicts of interest, public indebtedness, claims and disbursements, miscellaneous provisions and Tax Increment Financing. Our audit considered all of the listed categories. In connection with our audit, nothing came to our attention that caused us to believe that the City of Crystal, Minnesota failed to comply with the provisions of the Minnesota Legal Cofnpliance Audit Guide for Political Subdivisions, except as described in the accompanying Schedule of Findings and Responses on Legal Compliance. However, our audit was not directed primarily toward obtaining knowledge of such noncompliance. Accordingly, had we performed the additional procedures, other matters may have come to our attention regarding the City's noncompliance with the above referenced provisions. This report is intended solely for the information and use of those charged with governance and management of the City and the State Auditor and is not intended to be and should not be used by anyone other than these specified parties. �-�, ,� �� , ��:�-�.v � KERN, DEWENTER, VIERE, LTD. Minneapolis, Minnesota May 13, 2014 CITY OF CRYSTAL SCI-IEDULE OF FINDINGS AND RESPONSES ON LEGAL COMPLIANCE December 31, 2013 CURRENT YEAR LEGAL COMPLIANCE FINDINGS: Ensure all Outstanding Debt is Included on Report of Outstanding Indebtedness Minnesota Statutes 471.70 states the principal accounting officer oithe municipality report, on or before February 1 of each year, to the county auditors, the total amount o� outstanding obligations and the purpose of which issued, as of December 31 of the preceding year. During the year ended December 31, 2013, the City did not include the 2013B Bond on the Report of Outstanding Indebtedness when they filed it with the County. Management is aware of the situation and due to it being found after February 1 aiter the report was submitted, no further action was able to be taken as the County accepted the report. City's Response: The City will ensure that all outstanding debt is included on the Report of Outstanding Indebtedness before it is submitted to the County. Accept Donations through Resolution According to Minnesota Statutes 465.03, any city, county, school district or town may accept a grant or devise of real or personal property and maintain such property for the benefit of its citizens in accordance with the terms prescribed by the donor. Nothing herein shall authorize such acceptance or use for religious or sectarian purposes. Every such acceptance shall be by resol�ution of the governing body adopted by a two-thirds majority of its members, expressing such terms in full. During the year ended December 31, 2013, the City did not accept donations by resolution of Council. City's Response: The City will review the process of accepting donations to ensure it is compliance with Minnesota Statutes 465.03. 2 � 1 � 1 1 . .\... ....! \ .•.. _ . .!. ■ ..... COUNCIL STAFF REPORT CITYof Proposed Alley Proiect Contract Award CIZYSTAL FROM: Tom Mathisen, Public Works Director & City Engineer TO: Anne Norris, City Manager (for June 3 City Council Meeting) DATE: May 29, 2014 RE: Consider Bids, Award Contract, Project #2014-07 Alley Construction On May 6 the Council ordered the advertisement of bids for the above project. Those bids were received on Thursday, May 29 and are shown on the attached resolution. The Engineering Department's construction cost estimate for the work was $224,620.00. The low bid as received is $219,760.00. The bid amount includes an estimated amount of private driveway work. The final contract amount may be more or less depending on how many property owners participate in the private driveway program. Private driveway costs are assessed against those properties that participate. The estimated unit assessment is $1,800.00 per single/duplex residence for the concrete alley and related drainage, to be assessed over a ten year period. The low bidder, Concrete Idea, Inc. is a reputable contractor and has worked on Crystal projects in the past. It is recommended that the Council adopt the attached resolution awarding the contract to the low bidder. .- . -. ��, ��it , I: �;►I�r�..:,_ � � ` . � : . �� - - - . � City Engineer/DPW I : pu bworks/projects/2014/AI ley-Recons/awardcntrctmem2014 � 1 � 1 1 . .\... ....! \ .•.. _ . .!. ■ ..... RESOLUTION NO 2014- AWARDING CONTRACT FOR PROJECT NO. 2014-07 2014 ALLEY CONSTRUCTION PROJECT WHEREAS, the City Manager's office has reviewed and recommends approval of said appropriation and contract and award; and WHEREAS, it has been determined that said construction is in the best interest of the city; and WHEREAS, the cost is to be split with 40% coming from the Storm Drain Utility, and 60% from a special assessment to the benefiting property owners, and there are adequate funds in the Storm Drain Utility; and WHEREAS, bids were advertised for the project as required by law, three bids were received from qualified contractors and are listed as follows: Concrete Idea, Inc. $219,760.00 Landmark Concrete, Inc. $232,667.00 Ron Kassa Construction, Inc. $234,975.00. NOW, THEREFORE, BE IT RESOLVED that the Crystal City Council hereby awards the contract to Concrete Idea, Inc., in the amount of $219,760.00 to be paid based on the funding sources listed above. Adopted by the Crystal City Council this 3rd day of June, 2014. Jim Adams, Mayor ATTEST: Christina Serres, City Clerk I:\PUBWORKS\PROJECTS�2014�2014-07 Alleys\awardres 2014.doc � 1 � 1 1 . .\... ....! \ .•.. _ . .!. ■ .. COUNCIL STAFF REPORT ��TYof phase 14 Forest North Street Reconstruction CRY5TAL FROM: Tom Mathisen, Public Works Director & City Engineer TO: Anne Norris, City Manager (for June 3 City Council Meeting) DATE: May 29, 2014 RE: Consider Resolution Ordering Feasibility Study — Project #2014-14 Based on the results of the 2007 Update to the Overall Street Reconstruction Study, a recent update based on field observations, and the continuing review of the financial health of the Street Reconstruction Fund, the Engineering Department is proposing to continue major street reconstruction in the City in 2015. In February 2013, the Council authorized aerial photography and contour mapping of that portion of Crystal in the Lions North and Twin Oaks Parks, and the Skyway neighborhoods. If the Street Reconstruction Program is to continue moving forward, it is important to take action at this time if the Phase 14 project is to be built in 2015. Due to the desired and required neighborhood involvement, plus the design time and State Aid review process, the project requires nearly a full year lead time in order to begin construction in late spring 2015. At the June 3 Council meeting, a feasibility study proposal and tentative project schedule prepared by Short, Elliot, Hendrickson (SEH), will be presented for the Phase 14 project area. A copy of the proposal is attached and shows a proposed cost of $51,591. It will be proposed to reconstruct Phase 14 in a manner similar to Phases 1— 13, including new storm sewer, drain tile, curb and gutter, recycling the existing asphalt and gravel base, and new asphalt pavement. As presented in the 2007 update report, and as observed during subsequent and recent evaluations in the field, the streets in the project area are in very poor condition. In addition, there are scattered areas with "B" and "D" curb, and many areas with no curb and gutter. The proposed funding is a combination of special assessments, State Aid gas tax funds, Storm Drain Utility funds, and Street Reconstruction Fund funds. A detailed proposed funding mechanism will be presented at the conclusion of the feasibility study in late summer for final consideration by the Council. � 1 � 1 1 . .\... ....! \ .•.. _ . .!. ■ .. Mr. Aaron Ditzler from SEH will be at both the work session and the Council meeting to answer questions. It is recommended that the City Council adopt the attached resolution, authorizing the feasibility study for North Lions Park Phase 14 with SEH conducting the study. spectfully submitted, Tom Mathisen, City Engineer i:/pubworks/projects/phasel4/feasibilitymem � x e � fl m V O J N � LA � N a m � u'� � v 0 � N N T U U W 3 a �� o �. N � � � N � � U r�. O c6 O f� _ � n��r�� '�}§b�ian§,e., , �� A�t� . � N 0 275 55d Feet FILE N0. CRYST 12$d41 � � 1 � 1 1 . .\... ....! \ .•.. _ . .!. ■ .. RESOLUTION NO. 2014 - AUTHORIZING PREPARATION OF FEASIBILITY STUDY FOR STREET RECONSTRUCTION IN THE PHASE 14 STUDY AREA Project #2014-14 North Lions Park Neighborhood WHEREAS, Phases 1-13 have been successful at maintaining or increasing property values, and at revitalizing neighborhoods through storm drain, drain tile, curb and gutter, and new street reconstruction, and 75% of the City's local streets have now been reconstructed starting in 1995; and WHEREAS, in 2007 the Council accepted the Update to the 2003 Overall Street Reconstruction Study which outlines a process to complete the reconstruction of all local streets; and WHEREAS, the engineering firm of SEH has done excellent work for the City on previous projects, completing them on time and at or under budget, and has submitted a proposal to complete said Feasibility Study for Phase 14 at a cost of $51,591. NOW, THEREFORE, BE IT RESOLVED by the Crystal City Council that an Engineering Feasibility Study be prepared for North Lions Park Phase 14 Street Reconstruction Study Area, consistent with the proposal submitted by SEH. A portion of the cost of this work will be included in an assessment to benefiting properties pursuant to Minnesota Statutes, Chapter 429. A portion of the cost of the project would be financed through the sale of municipal bonds. The feasibility study is to involve street reconstruction including grading, gravel base and asphalt, drain tile, storm sewer and/or rain gardens, and concrete curb and gutter; and FURTHER, BE IT RESOLVED, that SEH be retained to prepare the Feasibility Study outlined herein under the direction of the City Engineer / Public Works Director, and that the Mayor and City Manager are authorized to sign the contract for services upon approval by the Council. Adopted by the Crystal City Council this 3rd day of June 2014 Jim Adams, Mayor ATTEST: Christina Serres, City Clerk i:/pubworks/projects/phase 14/feasibi I ityres � '. � �._ f"�er ?d i�� `;� � � t=S ��'y ° n:>>, (t:, �' � Supplemental Letter of Agreement to Agreement for Professional Services Dated July 7, 2009 May 28, 2014 Tom Mathisen, PE Director of Public Works / City Engineer City of Crystal 4141 Douglas Drive North Crystal, MN 55422-1696 Dear Tom: � 1 � 1 1 . .\... ....! \ .•.. _ . .!. ■ .. RE: Crystal, MN 2015 - Phase 14 Lions Park Street Reconstruction Report on Feasibility City Project No. 2014-14 SEH No. P-CRYST 128041 10.00 We appreciate the opportunity to submit our Supplemental Letter Agreement for the Phase 14 Lions Park Feasibility Study (Study). We understand that this Study is a refinement of work already begun by the Update to the 2003 Overall Study for Crystal's Local Street Reconstruction Program. Our services are in accordance with the updated Exhibit A, Paragraph B of the Agreement for Professional Services dated July 7, 2009 (Agreement). The Study area limits are the Lions Park Neighborhood, bounded on the west by West Broadway and the New Hope corporate limits, the south by Bass Lake Road, the east by the Burlington Northern Santa Fe Railroad, and the north by 62�d Avenue and the New Hope corporate limits. In general, in this phase we will continue the process followed in the first thirteen phases of local street reconstruction in Crystal. Specifically we propose the following key activities: 1. Prepare a"kick-off° newsletter that will include the resident survey on driveways, sump pumps, rain gardens and sanitary sewer service repair. It will also ask Phase 14 residents to indicate if they have private underground lawn irrigation and pet containment systems. 2. Utilize property information data supplied by the City's GIS system to prepare the mock assessment role. 3. Utilize amounts and locations of existing D and B style concrete curb and gutter supplied by the City's GIS system to prepare the mock assessment role. 4. Study the area-wide existing storm sewer system capacity. 5. Study roadway width, parking/no parking, sidewalk and pavement striping options along the project area Municipal State Aid (MSA) routes, which are: a. 60"' Avenue between Hampshire and Elmhurst Avenues, b. 62�d Avenue between Louisiana and Hampshire Avenues, and Engineers � Architects � Planners � Scientists Short Elliott Hendrickson Inc., 10901 Red Circle Drive, Suite 300, Minnetonka, MN 55343-9302 SEH is 100 % employee-owned � sehinc.com � 952.912.2600 � 800.734.6757 � 888.908.8166 fax � 1 � 1 1 . .\... ....! \ .•.. _ . .!. ■ .. Tom Mathisen, PE May 28, 2014 Page 2 c. Elmhurst Avenue between Bass Lake Road and 62°d Avenue. 6. Study the impact of construction on existing trees, retaining walls and other features in the boulevard area. 7. Coordinate the reconstruction of the following streets with the City of New Hope: a. 60'h Avenue between West Broadway and Louisiana Avenue, and b. Louisiana Avenue between Lombardy Lane and 62"d Avenue. 8. Coordinate the reconstruction of 62"d Avenue between Louisiana and Hampshire Avenues with the City of Brooklyn Park. 9. Account for the continuation of the private sanitary sewer service and driveway repair programs. 10. Coordinate with CenterPoint Energy for possible system wide upgrades. 11. Assist the City in obtaining quotes for soil investigation work. 12. Prepare for the following meetings: a. Three (3) with Engineering and Public Works Staff b. One (1) Neighborhood Open House c. One (1) coordination meeting with City of New Hope staff d. One (1) coordination meeting with City of Brooklyn Park staff e. One (1) City Council Workshop f. One (1) City Council meeting to present report findings g. One (1) Public Improvement Hearing with the City Council to present report findings We will deliver fourteen (14) final copies of the Study for your use. According to Exhibit C-3, Paragraph A of the Agreement, we will use the most recent opinion of probable construction cost for the project as approved by the owner to calculate our fee. The most recent opinion of probable cost is outlined in the following table. �'� From the attached Appendix B— Street Reconstruction Construction Unit Costs Comparison per Phase. �2� Per attached Appendix A(Revised December 7, 2012). In accordance with Appendix A dated December 7, 2012 to this Supplemental Agreement, our lump sum fee for this entire project is calculated on the basis of 15.12% of the total estimated construction cost or $735,907 including expenses. Per Minnesota Statutes, the report on feasibility has to be provided to the City on an hourly basis. Therefore, in accordance with Exhibit C-3, Paragraph A of the Agreement, we will provide the City with the report on feasibility for a total hourly fee of $51,591 including expenses. � 1 � 1 1 . .\... ....! \ .•.. _ . .!. ■ .. Tom Mathisen, PE May 28, 2014 Page 3 We will bill the City monthly on an hourly basis for services, expenses, and equipment as described in Exhibit C-1 of the Agreement. For your convenience, we include our billable cost range and schedule of expenses as Appendices C and D to this Supplemental Letter Agreement. The above financial arrangements are based on the orderly and continuous progress of the project. We will start our services promptly after receipt of your authorization of this Agreement. We anticipate fitting our work to match the following key City milestones. Item Milestone Date Authorization to Proceed June 3 City Council Workshop September 2 Deliver Study to the City September 11 Present Study to the City Council September 16 Neighborhood Open House October 9 Public Improvement Hearing October 21 We understand an estimated total project cost was established for Phase 14 as part of the Update to the 2003 Overall Study and updated based on actual street reconstruction costs per linear foot of street centerline. We understand these limitations are realistic and will try to work within those limitations. This Supplemental Letter Agreement and the Agreement represent the entire understanding between you and us in respect to the project and may only be modified in writing signed by both of us. If it satisfactorily sets forth your understanding of our agreement, please sign the enclosed copy of this letter in the space provided below and return it to us. Sincerely, SHORT ELLIOTT HENDRICKSON INC. / � / ' � �� Aaron T. Ditzler, PE Project Manager City of Crystal, Minnesota Accepted this _____ day of _________________, 2014 By� ----------------------------- Title----------------------------- � Title Enclosures p:\ae\c\cryst\128041\1-genl\10-contracts\proposal\phase 14 feas rpt proposal.docx � 1 � 1 1 . .\... ....! \ .•.. _ . .!. ■ .. APPENDIX A CITY OF CRYSTAL STREET RECOSTRUCITON LUMP SUM ENGINEERING SERVICES AGREEMENT AS PERCENTAGE OF FINAL CONSTRUCTION COST SHORT ELLIOTT HENDRICKSON, INC. DECEMBER 7, 2012 * Final Total Construction Engineering Feasibility Plans and Construction Cost ($) Fee (%) Study (%) Specs (%) Mgmt (%) $2,000,000 19.52% 1.37% 7.80% 10.35% $2,250,000 19.12% 1.34% 7.65% 10.13% $2,500,000 18.72% 1.31% 7.49% 9.92% $2,750,000 18.32% 1.28% 7.33% 9.71°/a $3,000,000 17.92% 1.25% 7.17% 9.50% $3,250,000 17.52% l .23% 7.00% 9.29% $3,500,000 17.12% 1.20% 6.85% 9.07% $3,750,000 16.72°/a 1.17% 6.69% 8.86% $4,000,000 16.32% 1.14% 6.53% 8.65% $4,250,000 15.92% 1.11% 6.37% 8.44% $4,500,000 15.52% 1.09% 6.20% 8.23% $4,750,000 I 5. l 2% 1.06% 6.05% 8.01 % $5,000,000 14.72% l .03% 5.89% 7.80% $5,250,000 14.32% 1.00% 5.73% 7.59% $5,500,000 13.92% 0.97% 5.57% 7.38% $5,750,000 13.52% 0.95% 5.40% 7.17% $6,000,000 13.12% 0.92% 5.25% 6.95% $6,250,000 12.72% 0.89% 5.09% 6.74% $6,500,000 12.32% 0.86% 4.93% 6.53% $6,750,000 11.92% 0.83% 4.77% 6.32% $7,000,000 11.52% 0.81 % 4.60% 6.11 % $7,250,000 11.12% 0.78% 4.45% 5.89% $7,500,000 10.72% 0.75% 4.29% 5.68% $7,750,000 10.32% 0.72% 4.13% 5.47% $8,000,000 9.92% _ 0.69% 3.97% 5.26% Final construction cost includes 15% of private driveway and sanitary sewer repair costs. Total fee will be based on Total Engineering Fee percentage column. Remaining three columns are only possible breakdowns to be used to keep cost of each phase balanced. *Revised 10-9-07 (privatc to 15%) *Revised 1-14-09 (Revised Percentages for Total Eugineering Pee, Peasibility Shidy, Plans and Specs, and Construction Mgmt) *Revised 12-7-12 (Revised Percentages for Total �ngineering Fee, Feasibility Study, Plans and Specs, and Construction Mgmt) P:\AE\C\Gyst\Common\Mastcr Contract\R�VISED APPENDIX A 12 07 12.docx � 1 � 1 1 . .\... ....! \ .•.. _ . .!. ■ .. /i� SEH CRYSTAL, MINNESOTA 2013 - BECKER PARK STREET RECONSTRUCTION FEASIBILITY REPORT CITY PROJECT NO. 2012-13 Appendix B- Street Reconstruction Construction Unit Costs Comparison Per Phase Date: March 19, 2007 Revised: March 27, 2007; September 4, 2008; September 11, 2008; September 15, 2008 Revised: August 31, 2010; September 7, 2010; September 15, 2010; March 28, 2011; May 23, 2011 Revised: August 24, 2011; August 31, 2011; September 2, 2011; September 12, 2011; March 30, 2012 Revised: August 23, 2012; April 9, 2013 P:WE\C\CrystN28041N-genl\10-contracts\Proposal\re4[phase 1 �hru 16 unil cosl comparison.xlsxjUnit Cosl Infl Yr 3 in a row � 9 3 4 5 6 A B C D E F G H J K L M N O P Q R S T U V W X Y (1) Costs without Sanitary, Watermain, and Private Costs (2) Costs are in year the project was built (Phases 1-13) (3) Based on Opinion of Probable Cost (4) Noi Used (5) �3 Projects over 18 years (6) Cell Formula equal to C4I64 -1, etc. (7) Based on average annual increase in construction cost between Phase 1 and 13 (8) Based on Awarded Bid Construction Cost Slreet Reconstruclion Construclion Uni� Cosfs Comparison Per Phase $250.00 $225.00 $200.00 o $175.00 0 LL N N J $ � �J�.�Q N a o $125.00 U $100.00 $75.00 $50.00 $25.00 . . . N � � � rn <o � ao rn o � c� � e �n co r m m o .- a �n co r m rn m m � o 0 0 0 0 0 0 rn rn m o 0 0 0 o N o o � � N N � � N N N N N N N N N N N N N N N N N Year