2016.07.19 Council Meeting Packet
Posted: July 15 , 2016
CITY OF CRYSTAL
City Council Meetings
Tuesday, July 19, 2016
MEETING SCHEDULE
Time Type of Meeting Location
6:00 p.m.
6:15 p.m.
1st Council work session to discuss:
• Settlement of Phase 15 assessment appeal
(this portion of the work session will be
closed pursuant to Chapter 13D of state
law)
• Update on CUAPB lawsuit (this portion of
the work session will be closed pursuant to
Chapter 13D of state law)
Conference Room A
6:45 p.m. EDA Regular Meeting Council Chambers
7:00 p.m. Regular City Council meeting Council Chambers
Immediately
following the
regular City
Council meeting
2nd City Council work session to discuss:
• Bassett Creek regional park and trail
update
• Community Outreach Task Force update
• CPRR Quiet Zone – revised layouts for
West Broadway and Douglas Drive
crossings
• Blue Line update
• Council goals and city manager monthly
check in
• Constituent issues update
• New business
• Announcements
Conference Room A
Auxiliary aids are available upon request to individuals with disabilities by calling the City Clerk at
(763) 531-1145 at least 96 hours in advance. TTY users may call Minnesota Relay at 711 or 1-800-627-3529.
4141 Douglas Drive North • Crystal, Minnesota 55422-1696
Tel: (763) 531-1000 • Fax: (763) 531-1188 • www.crystalmn.gov
Posted: July 15, 2016
CRYSTAL CITY COUNCIL
FIRST WORK SESSION AGENDA
Tuesday, July 19, 2016
6:00 p.m.
Conference Room A
Pursuant to due call and notice given in the manner prescribed by Section 3.01 of the City
Charter, the first work session of the Crystal City Council was held at ______ p.m. on Tuesday,
July 19, 2016 in Conference Room A located at 4141 Douglas Drive, Crystal, Minnesota.
I. Attendance
Council members Staff
____ Peak ____ Norris
____ Adams ____ Therres
____ Dahl ____ Revering
____ Deshler ____ Ray
____ Kolb ____ Gilchrist
____ Libby ____ Serres
____ Parsons
II. Agenda
The purpose of the work session is to discuss the following agenda items:
1. 6:00 p.m. - Settlement of Phase 15 assessment appeal (this portion of the work
session will be closed pursuant to Chapter 13D of state law)*
2. 6:15 p.m. - Update on CUAPB lawsuit (this portion of the work session will be closed
pursuant to Chapter 13D of state law)*
III. Adjournment
The work session adjourned at ______ p.m.
* Denotes no supporting information included in the packet.
Auxiliary aids are available upon request to individuals with disabilities by calling the City Clerk at (763)
531-1145 at least 96 hours in advance. TTY users may call Minnesota Relay at 711 or 1-800-627-3529.
4141 Douglas Drive North • Crystal, Minnesota 55422-1696
Tel: (763) 531-1000 • Fax: (763) 531-1188 • www.crystalmn.gov
4141 Douglas Drive North • Crystal, Minnesota 55422-1696
Tel: (763) 531-1000 • Fax: (763) 531-1188 • www.crystalmn.gov
AGENDA
ECONOMIC DEVELOPMENT AUTHORITY OF THE CITY OF CRYSTAL
REGULAR MEETING
TUESDAY, JULY 19, 2016
6:45 P.M.
CRYSTAL CITY HALL
COUNCIL CHAMBERS
1. Call to order *
2. Roll call *
3. Approval of minutes from the June 21, 2016 special meeting
4. Public Hearing: Consider a resolution authorizing the sale of 4331 Vera Cruz
Avenue North to Timbercraft Enterprises for new house construction
5. Other business *
6. Adjournment *
*Items for which no materials are included in the packet
Minutes of the
Crystal Economic Development Authority
Special Meeting
June 21, 2016
President Peak called the regular meeting of the Crystal Economic Development Authority to
order at 7:52 p.m.
Upon call of the roll, the following members were present: Jim Adams, Elizabeth Dahl, Julie
Deshler, Jeff Kolb, Olga Parsons and Casey Peak.
The following staff members were present: Anne Norris, City Manager; John Sutter, Community
Development Director; Dan Olson, City Planner; and Troy Gilchrist, City Attorney.
Motion by Commissioner Adams (Parsons) to approve the minutes of the June 7, 2016 regular
meeting.
Motion carried.
The EDA held a public hearing to consider a resolution authorizing the sale of a lot at 3122
Douglas Drive North to Tollberg Homes. Mr. Olson presented the staff report. President Peak
opened the public hearing. No one appeared and the hearing was closed.
Motion by Commissioner Adams (Deshler) to adopt a resolution authorizing the sale of 3122
Douglas Drive North to Tollberg Homes.
Motion carried.
The EDA considered tentative acceptance of a proposal from Timbercraft Enterprises for the lot
at 4331 Vera Cruz Avenue North. Mr. Olson presented the staff report. Peter Merlowski of
Timbercraft Enterprises appeared before the board. Mr Olson and Mr. Sutter answered questions
from the board.
Motion by Commissioner Kolb (Parsons) to tentatively accept the proposal from Timbercraft
Enterprises for the lot at 4331 Vera Cruz Avenue North without the staff recommendation
regarding the side entrance but directing staff to contact the adjacent homeowner and
communicate their preference to the builder regarding same.
Motion carried.
Under Other Business, Mr. Sutter answered questions from the board regarding the status of the
former Thriftway building at 5717 West Broadway and the potential to move EDA properties to
market. Potential blighted property acquisitions will be discussed at a future work session.
Motion by Commissioner Dahl (Parsons) to adjourn the meeting.
Motion carried.
The meeting adjourned at 8:15 p.m.
_______________________________
Casey Peak, President
ATTEST:
______________________________
Olga Parsons, Vice President
Page 1 of 1
___________________________________________________________________________
FROM: Dan Olson, City Planner
___________________________________________________________________________
DATE: July 15, 2016
TO: Anne Norris, Executive Director (for July 19 EDA meeting)
SUBJECT: PUBLIC HEARING: Consider a resolution authorizing the sale of lot at 4331
Vera Cruz Avenue North to Timbercraft Enterprises for construction of a
new house
Timbercraft Enterprises, a Minnesota Residential Building Contractor with no enforcement
actions, has submitted a proposal to purchase the lot at 4331 Vera Cruz Avenue North for
$50,000. The EDA tentatively accepted the builder’s proposal on June 21, 2016. The
proposed resolution, site location map, proposal form, site sketch and house plan are
attached.
The plans presented on June 21st were tentative and were to be revised before the required
public hearing so that they could be tailored for the property at 4331 Vera Cruz. The builder
has revised those plans to reconfigure the location of the bedrooms and create a rear
entrance to easily access the back yard and the detached garage.
The final house plans are for a new one-story home with a detached garage accessed off of
the alley. The proposed house would have 1,176 square feet on the main floor with an open
living-dining-kitchen area, three bedrooms and two bathrooms. The lower level would have a
laundry area and space for a bedroom, bathroom and large family room to be finished later.
If on July 19 the EDA adopts the attached resolution then the lot sale would close in August.
Construction would begin after closing with completion anticipated by early 2017.
REQUESTED EDA ACTION: After holding the public hearing and receiving any testimony,
consider adopting the attached resolution authorizing the property sale of 4331 Vera Cruz
Avenue North to Timbercraft Enterprises.
EDA STAFF REPORT
PUBLIC HEARING
4331 Vera Cruz Avenue North – Sale of Lot to Timbercraft
Enterprises
ECONOMIC DEVELOPMENT AUTHORITY OF THE CITY OF CRYSTAL
HENNEPIN COUNTY
STATE OF MINNESOTA
RESOLUTION NO. 2016-04
A RESOLUTION AUTHORIZING THE SALE OF
4331 VERA CRUZ AVENUE NORTH
FOR NEW HOUSE CONSTRUCTION
WHEREAS, the Economic Development Authority of the City of Crystal (“the EDA”) is the
owner of 4331 Vera Cruz Avenue North, legally described as follows:
Lot 2, Block 1, Robbinsdale Home Gardens Second Addition, Hennepin County,
Minnesota (“the Property”); and
WHEREAS, the EDA has solicited proposals from builders who desire to purchase the
Property from the EDA and construct thereon a new single family house; and
WHEREAS, the EDA has reviewed and accepted the proposal from Timbercraft Enterprises.
NOW, THEREFORE, BE IT RESOLVED that the EDA authorizes the sale of the Property to
Timbercraft Enterprises.
BE IT FURTHER RESOLVED that the sale shall be completed in accordance with the terms of
the Purchase and Redevelopment Agreement in substantially the form on file in City Hall, and
that the President and Executive Director are hereby authorized to sign said Agreement and
other documents required to complete the sale of the Property to Timbercraft Enterprises.
Adopted this 19th day of July, 2016.
____________________________________
Casey Peak, President
____________________________________
Anne Norris, Executive Director
City Council Meeting Agenda
July 19, 2016
7:00 P.M.
Council Chambers
THE CITY MANAGER’S COMMENTS ARE BOLDED.
1. CALL TO ORDER, ROLL CALL, AND PLEDGE OF ALLEGIANCE
2. APPROVAL OF AGENDA
The Council will consider approval of the agenda.*
3. COUNCIL MEETING MINUTES
The Council will consider the minutes from the following meetings in a single motion:
a. The Regular City Council Meeting from June 21, 2016;
b. The Council Work Sessions from June 21, 2016;
c. The Council Work Session from June 28, 2016; and
d. The Council Work Session from July 12, 2016.
4. CONSENT AGENDA
The Council will consider the following items, which are routine and non-controversial in
nature, in a single motion:
4.1 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;
4.2 Approval of a resolution accepting the following donations:
a. $2,000.00 from Crystal Lions for Crystal Frolics
b. 115 tons of surplus salt from Prescription Landscape
c. $1,000.00 from VFW Post 494 for Crystal Airport Open House
d. $136.20 from various donation boxes for Crystal K-9 Unit
4.3 Approval of a special permit to serve wine and beer at Yunkers Park on
Saturday, July 16, 2016, from 5-10 p.m., for up to 100 guests to attend a
neighborhood get together, submitted by Elizabeth Dahl. (This license was pre-
approved by City Manager Anne Norris on July 7, 2016, as the event was being
held before the next council meeting.);
4141 Douglas Drive North • Crystal, Minnesota 55422-1696
Tel: (763) 531-1000 • Fax: (763) 531-1188 • www.crystalmn.gov
Crystal City Council Meeting Agenda
July 19, 2016
4.4 Approval of a special permit to serve wine and beer at the Community Center on
Saturday, July 23, 2016, from 5-11:45 p.m., for up to 250 guests to attend an
event, submitted by Big Ten Catering;
4.5 Approval of a temporary on-sale liquor license for a church festival on August 5 -
7, 2016, submitted by the Church of St. Raphael located at 7301 56th Avenue
North; and
4.6 Approval of a settlement regarding Phase 15 assessment appeal.
5. OPEN FORUM
(The City Council appreciates hearing from citizens about items of concern and desires
to set aside time during each meeting for Open Forum. To provide ample opportunity
for all, speaking time is limited to three minutes and topic discussion is limited to ten
minutes. The Mayor may, as presiding officer, extend the total time allowed for a topic.
By rule, no action may be taken on any item brought before the Council during Open
Forum. The Council may place items discussed during Open Forum onto subsequent
Council meeting agendas.)
6. REGULAR AGENDA
6.1 The Council will consider 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.
Recommend approval of disbursements over $25,000.
6.2 The Council will consider a resolution awarding the sale of general obligation
improvement bonds, series 2016A, in the original aggregate principal amount of
$3,330,000; fixing their form and specifications; directing their execution and
delivery; and providing for their payment.
The City Council authorized the sale of bonds to finance Phase 15 of street
reconstruction. Finance Director Charles Hansen and a representative of
Springsted will be at the meeting to report on the results of the bond sale.
Recommend approval of the resolution awarding the sale of bonds as
recommended by Springsted.
6.3 The Council will consider a front setback variance for 3226 and 3232 Georgia
Avenue North.
The developer of the Gardendale Subdivision is requesting variances to the
front setback for the proposed homes to be constructed at 3226 and 3232
Georgia Avenue North. The front setbacks are proposed to be reduced from
30 feet to 15 feet as measured from the home’s foundation to the cul-de-sac
easement line which will result in both homes being 25 feet from the cul-de-
sac curb. The developer’s reason for requesting the variances is for the
homes at 3226 and 3232 Georgia to have a front setback that is similar to
other future homes on Georgia south of the cul-de-sac. On July 11 the
Crystal City Council Meeting Agenda
July 19, 2016
Planning Commission held a public hearing on the requested variances and
unanimously recommended approval based on the findings and conditions
outlined in the staff report.
6.4 The Council will consider initiating a zoning ordinance text amendment revising the
Floodplain Overlay District.
As discussed at the July 12 work session, FEMA is requiring updates to local
flood plain ordinances and maps be approved by November 4. In order to
meet this deadline, recommend approval of initiating the ordinance
amendment process for the Planning Commission’s consideration in August.
6.5 The Council will consider first reading of an ordinance opting out of the statute on
temporary family health care dwellings.
During the 2016 session the Legislature adopted a statute allowing temporary
family health care dwellings statewide. As defined by the statute, a temporary
family health care dwelling is “a mobile residential dwelling providing an
environment facilitating a caregiver’s provision of care for a mentally or
physically impaired person” that meets additional criteria. This new law is
effective on September 1, 2016. While the statute preempts local regulation of
drop homes, it also says that permits are to be issued and inspections
performed by local governments. If local governments do not wish to allow
drop homes, the statute includes a provision allowing them to opt out by
adopting an ordinance. As discussed at the June 21 work session,
recommend approval of the first reading of an ordinance opting out of the
statute on temporary family health care dwellings.
6.6 The Council will consider approval of 2017 West Metro Fire-Rescue District budget.
The Joint Powers Agreement for the West Metro Fire District requires the
West Metro Board to approve the budget by June and forward it to both city
councils for their consideration. The Board approved the 2017 West Metro
budget at its April meeting. Both the Crystal and New Hope city councils
need to approve the West Metro budget by July 31. The total proposed West
Metro budget (general fund and capital) for 2017 is $2,190,500.00, an increase
of $148,700.00 (7.28%) from the 2016 budget. According to the District
funding formula, Crystal’s share of the 2017 budget is 49.4988% of the costs,
or $1,084,271, an increase of $65,064 over Crystal’s share in 2016.
Recommend approval of the 2017 West Metro Fire-Rescue District 2017
budget.
6.7 The Council will consider terms of a loan agreement with Crystal Little League.
Earlier this year, the Crystal Little League was awarded a Hennepin County
Youth Sports Grant towards the cost of renovating the three ball fields. The
total cost of the project is estimated at approximately $78,000 and the grant is
$38,000. Crystal Little League is requesting the City consider a loan
Crystal City Council Meeting Agenda
July 19, 2016
agreement to help with cash flowing the project, similar to what the City did
with the ballfield lighting project in 2012. If the City Council finds this
arrangement acceptable, the City Attorney’s office will draft the loan
agreement for City Council consideration and execution at its August 16
meeting.
7. INFORMATION AND ANNOUNCEMENTS
a. The Crystal Business Association meets on Wednesday, July 20, at 8:30 a.m. at
Northridge Care Center, 5430 Boone Avenue North.
b. Crystal Frolics is July 28 – 31. For more information, visit www.crystalfrolics.org
c. The next Music in the Park event will be held at Welcome Park beginning at 7:00
p.m. on Wednesday, July 27.
d. Minnesota Night to Unite is Tuesday, August 2. Registration forms are due July 22.
e. The next City Council meeting begins at 7:00 p.m. on Tuesday, August 16, in the
Council Chambers at City Hall.
f. The City Council will hold budget work sessions in August on Thursday, August 11,
18 and 25 at 6:30 p.m. in the Community Room at City Hall.
g. Girl and Boy Scout troops interested in leading the pledge at future regular City
Council meetings may contact city staff for information.
h. All City Council meetings and work sessions are open to the public as well as
recorded and available for viewing or listening at www.crystalmn.gov.
8. ADJOURNMENT
9. MEETING SCHEDULE ON JULY 19, 2016
Time Type of Meeting Location
6:00 p.m.
6:15 p.m.
1st Council work session to discuss:
• Settlement of Phase 15 assessment
appeal (this portion of the work session
will be closed pursuant to Chapter 13D
of state law)*
• Update on CUAPB lawsuit (this portion
of the work session will be closed
pursuant to Chapter 13D of state law)*
Conference Room A
6:45 p.m. EDA Regular Meeting Council Chambers
Crystal City Council Meeting Agenda
July 19, 2016
7:00 p.m. Regular City Council meeting Council Chambers
Immediately
following the
regular City
Council meeting
2nd City Council work session to discuss:
• Bassett Creek regional park and trail
update*
• Community Outreach Task Force
update
• CPRR Quiet Zone – revised layouts for
West Broadway and Douglas Drive
crossings
• Blue Line update*
• Council goals and city manager
monthly check in
• Constituent issues update
• New business*
• Announcements*
Conference Room A
* Denotes no supporting information included in the packet.
Have a great weekend; see you at Tuesday’s meeting.
Crystal City Council Work Session Minutes June 21, 2016
Page 1 of 1
Pursuant to due call and notice given in the manner prescribed by Section 3.01 of the City
Charter, the first work session of the Crystal City Council was held at 6:32 p.m. on
Tuesday, June 21, 2016 in Conference Room A 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:
COUNCIL:
Present: Parsons, Peak, Adams, Dahl, Deshler and Kolb.
Absent: Libby.
STAFF: City Manager A. Norris, Assistant City Manager/Human Resources Manager
K. Therres, Fire Chief S. Larson, Assistant Fire Chief J. Nelson, Police Chief
S. Revering, City Attorney T. Gilchrist and City Clerk C. Serres.
II. AGENDA
The Council and staff discussed the following agenda item:
1. 2017 West Metro Fire-Rescue District budget
III. ADJOURNMENT
The work session adjourned at 6:59 p.m.
______________________________
Jim Adams, Mayor
ATTEST:
_____________________________
Chrissy Serres, City Clerk
4141 Douglas Dr. N., Crystal, MN 55422-1696
763-531-1000 • Fax: 763-531-1188 • www.crystalmn.gov
Crystal City Council Meeting Minutes June 21, 2016
Page 1 of 5
1. 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, June 21, 2016 at 7:00 p.m. in the Council Chambers at 4141 Douglas Drive
in Crystal, Minnesota. Mayor Adams called the meeting to order.
ROLL CALL
Mayor Adams asked the city clerk to call the roll for elected officials. Upon roll call, the city
clerk recorded the following attendance:
COUNCIL:
Present: Parsons, Peak, Adams, Dahl, Deshler and Kolb.
Absent: Libby.
STAFF: City Manager A. Norris, Assistant City Manager/Human Resources Manager K.
Therres, Community Development Director J. Sutter, City Planner D. Olson, Police
Chief S. Revering, City Attorney T. Gilchrist and City Clerk C. Serres.
PLEDGE OF ALLEGIANCE
Mayor Adams led the Council and audience in the Pledge of Allegiance.
2. APPROVAL OF AGENDA
The Council considered approval of the agenda.
Moved by Councilmember Kolb and seconded by Councilmember Peak to approve the
agenda.
Motion carried.
3. APPEARANCES
3.1 Police Chief S. Revering recognized Crystal Police Explorers for awards they received at
the Rochester Explorer Conference.
4. COUNCIL MEETING MINUTES
The Council considered the minutes from the following meetings in a single motion:
a. The Regular City Council Meeting from June 7, 2016; and
b. The Council Work Sessions from June 7, 2016.
Moved by Councilmember Parsons and seconded by Councilmember Dahl to approve the
above minutes in a single motion.
Motion carried.
4141 Douglas Dr. N., Crystal, MN 55422-1696
763-531-1000 • Fax: 763-531-1188 • www.crystalmn.gov
Crystal City Council Meeting Minutes June 21, 2016
Page 2 of 5
5. CONSENT AGENDA
The Council considered the following items, which are routine and non-controversial in
nature, in a single motion:
5.1 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;
5.2 Approval of Resolution No. 2016-95, accepting the following donations:
a. $1,216.00 from Crystal Fund for Community Progress for annual city flower
planting
b. $901.00 from Crystal Fund for Community Progress for Arbor Day trees
c. $149.59 from Dairy Queen to the Crystal K-9 Unit from a fundraiser held on April
19, 2016
d. $10,000.00 from VFW Post 494 for Crystal Frolics
e. $161.72 from various donation boxes to the Crystal K-9 Unit
f. $10,000.00 from West Metro Fire Relief Association for Crystal Frolics
g. $2,000.00 from West Metro Fire Relief Association for Crystal Airport Open House
5.3 Approval of a special permit to serve wine and beer at Bassett Creek Park on Saturday,
July 16, 2016, from 5 - 10 p.m., for up to 100 guests to attend a wedding shower/picnic,
submitted by Rita Holland;
5.4 Acceptance of Kyle Turner’s resignation from the Environmental Quality Commission;
5.5 Approval of Resolution No. 2016-96, appointing election judges for the 2016 primary
and general elections; and
5.6 Approval of Resolution No. 2016-97, establishing an Absentee Ballot Board for the 2016
primary and general elections.
Moved by Councilmember Kolb and seconded by Councilmember Peak to approve the
consent agenda, but remove items #5.7 and 5.8 and move them to the beginning of the
regular agenda.
Motion carried.
6. OPEN FORUM
No public comment was given during open forum.
7. REGULAR AGENDA
7.1 The Council considered approval of a resolution reducing an assessment for tax forfeit
property at 5728 Oregon Court.
Moved by Mayor Adams and seconded by Councilmember Deshler to table discussion of
the proposed resolution to receive additional information from staff.
Voting aye: Parsons, Peak, Adams, Dahl, Deshler and Kolb.
Absent, not voting: Libby.
Motion carried.
Crystal City Council Meeting Minutes June 21, 2016
Page 3 of 5
7.2 The Council considered authorizing execution of an agreement with Hennepin County for
Assessing Services
Moved by Councilmember Kolb and seconded by Councilmember Peak to authorize
execution of an agreement with Hennepin County for Assessing Services.
Voting aye: Parsons, Peak, Adams, Dahl, Deshler and Kolb.
Absent, not voting: Libby.
Motion carried.
7.3 The Council considered 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.
Moved by Councilmember Parsons and seconded by Councilmember Dahl to approve
the list of disbursements over $25,000.
Voting aye: Parsons, Peak, Adams, Dahl, Deshler and Kolb.
Absent, not voting: Libby.
Motion carried.
7.4 The Council considered civil penalties for violation of state laws and city ordinances
relating to an alcohol compliance check failure by Adair Liquor located at 6001 42nd
Avenue North.
City Clerk C. Serres addressed the Council.
Moved by Councilmember Deshler and seconded by Councilmember Peak to make a
motion that based on the staff report, including the findings contained therein, and the
other information presented regarding this matter, that a penalty of $750 and a license
suspension of one day be imposed in this case.
Voting aye: Parsons, Peak, Adams, Dahl, Deshler and Kolb.
Absent, not voting: Libby.
Motion carried.
7.5 The Council considered civil penalties for violation of state laws and city ordinances
relating to an alcohol compliance check failure by Crystal Wine and Spirits located at
4920 West Broadway.
City Clerk C. Serres addressed the Council.
Business owner E. Charlson addressed the Council.
Moved by Councilmember Kolb and seconded by Councilmember Peak to make a
motion that based on the staff report, including the findings contained therein, and the
other information presented regarding this matter, that a penalty of $500 and no license
suspension be imposed in this case.
Crystal City Council Meeting Minutes June 21, 2016
Page 4 of 5
Voting aye: Parsons, Peak, Adams, Dahl, Deshler and Kolb.
Absent, not voting: Libby.
Motion carried.
7.6 The Council considered a resolution approving a Conditional Use Permit for a day care
at 6122 42nd Avenue North.
City Planner D. Olson addressed the Council.
Moved by Councilmember Peak and seconded by Councilmember Dahl to adopt the
following resolution, the reading of which was dispensed with by unanimous consent:
RESOLUTION NO. 2016 – 98
RESOLUTION APPROVING A CONDITIONAL USE PERMIT FOR
THE PROPERTY LOCATED AT 6122 - 42ND AVENUE NORTH
Voting aye: Parsons, Peak, Adams, Dahl, Deshler and Kolb.
Absent, not voting: Libby.
Motion carried, resolution declared adopted.
7.7 The Council considered second reading and adoption of an ordinance amending City
Code Section 640.13 pertaining to long grass.
Community Development Director J. Sutter addressed the Council.
Moved by Councilmember Kolb and seconded by Councilmember Deshler to adopt the
following ordinance:
ORDINANCE NO. 2016 – 02
AN ORDINANCE AMENDING CHAPTER 6 OF THE CRYSTAL CITY CODE
And further, that this is the second and final reading.
Voting aye: Parsons, Peak, Adams, Dahl, Deshler and Kolb.
Absent, not voting: Libby.
Motion carried.
7.8 The Council considered a resolution amending the 2016 PIR to purchase a parks athletic
field paint sprayer.
City Manager A. Norris addressed the Council.
Moved by Councilmember Deshler and seconded by Councilmember Parsons to adopt
the following resolution, the reading of which was dispensed with by unanimous consent:
Crystal City Council Meeting Minutes June 21, 2016
Page 5 of 5
RESOLUTION NO. 2016 – 99
APPROVING THE PURCHASE OF AN
ATHLETIC FIELD PAINT SPRAYER
Voting aye: Parsons, Peak, Adams, Dahl, Deshler and Kolb.
Absent, not voting: Libby.
Motion carried, resolution declared adopted.
9. INFORMATION AND ANNOUNCEMENTS
The Council made several announcements about upcoming events.
10. ADJOURNMENT
Moved by Councilmember Peak and seconded by Councilmember Deshler to adjourn the
meeting.
Motion carried.
The meeting adjourned at 7:50 p.m.
____________________________
Jim Adams, Mayor
ATTEST:
_____________________________
Chrissy Serres
City Clerk
Crystal City Council Work Session Minutes June 21, 2016
Page 1 of 1
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 8:21 p.m. on
Tuesday, June 21, 2016 in Conference Room A 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:
COUNCIL:
Present: Parsons, Peak, Adams, Dahl, Deshler and Kolb.
Absent: Libby.
STAFF: City Manager A. Norris, Assistant City Manager/Human Resources Manager
K. Therres, Community Development Director J. Sutter, Police Chief S.
Revering, City Attorney T. Gilchrist and City Clerk C. Serres.
II. AGENDA
The Council and staff discussed the following agenda items:
1. Temporary family health care dwellings
2. Council goals/priorities and city manager priorities/work plan
3. Constituent issues update
4. New business
5. Announcements
III. ADJOURNMENT
The work session adjourned at 9:15 p.m.
______________________________
Jim Adams, Mayor
ATTEST:
_____________________________
Chrissy Serres, City Clerk
4141 Douglas Dr. N., Crystal, MN 55422-1696
763-531-1000 • Fax: 763-531-1188 • www.crystalmn.gov
Crystal City Council Work Session Minutes June 28, 2016
Page 1 of 1
Pursuant to due call and notice given in the manner prescribed by Section 3.01 of the City
Charter, the special work session of the Crystal City Council was held at 6:05 p.m.
beginning at Crystal City Hall, 4141 Douglas Drive, Crystal, Minnesota.
I. ATTENDANCE
The city manager recorded the attendance with the following members:
COUNCIL:
Present: Adams, Deshler, Parsons, Dahl, Kolb and Peak.
Absent: Libby.
STAFF: City Manager A. Norris, Community Development Director J. Sutter, Public
Works Director M. Ray and Police Chief S. Revering.
OTHER: Dave Davies, Nick Landwer, Brent Rusco, and Dan Soler from Blue Line
Project Office.
II. AGENDA
The purpose of the work session was to visit the following locations:
1. Existing crossing of Bottineau Boulevard at Bass Lake Road.
2. Existing pedestrian bridge over Central Avenue/Trunk Highway 65 at 49th Avenue
NE in Columbia Heights.
3. Existing pedestrian bridge at the Northstar Commuter Rail/Riverdale Station at
3050 Northdale Boulevard NW in Coon Rapids.
III. ADJOURNMENT
The work session adjourned at 8:47 p.m.
______________________________
Jim Adams, Mayor
ATTEST:
_____________________________
Anne Norris, City Manager
4141 Douglas Dr. N., Crystal, MN 55422-1696
763-531-1000 • Fax: 763-531-1188 • www.crystalmn.gov
Crystal City Council Work Session Minutes July 12, 2016
Page 1 of 1
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 6:30 p.m. on Tuesday,
July 12, 2016 in Conference Room A located at 4141 Douglas Drive, Crystal, Minnesota.
I. ATTENDANCE
The assistant city manager recorded the attendance with the following members:
COUNCIL:
Present: Parsons, Peak, Adams, Dahl, Deshler, Kolb and Libby.
STAFF: City Manager A. Norris, Assistant City Manager/Human Resources Manager
K. Therres, Police Chief S. Revering, Public Work Director/City Engineer M.
Ray, and Community Development Director J. Sutter.
OTHER: Attorney F. Madden.
Moved by council member Kolb and seconded by council member Peak to close the
meeting to discuss strategy for labor negotiations.
Motion carried.
Moved by council member Kolb and seconded by council member Peak to adjourn the
closed meeting and re-open the work session.
Motion carried.
II. AGENDA
The Council and staff discussed the following remaining agenda items:
1. Introduction to body cameras
2. Flood plain ordinance revisions
3. Blue Line update
4. 2017 budget materials review
III. ADJOURNMENT
The work session adjourned at 9:06 p.m.
______________________________
Jim Adams, Mayor
ATTEST:
_______________________________
Kim Therres, Assistant City Manager
4141 Douglas Dr. N., Crystal, MN 55422-1696
763-531-1000 • Fax: 763-531-1188 • www.crystalmn.gov
4.1
Page 1 of 2
APPLICATIONS FOR CITY LICENSE
July 19, 2016
ANIMAL KENNEL
Ron & Deanna Schuster 5841 Nevada Ave N Crystal, MN 55428
CARNIVAL WITH GAMES
Church of St Raphael 7301 56th Ave N Crystal, MN 55428 8/5/16 – 8/7/16
Mad Jax/Midwest Rides for Crystal Frolics at Becker Park 7/28/16 – 7/31/16
GAS INSTALLER
Legacy Companies 8850 Wentworth Ave S Bloomington, MN 55420
Neil Heating & A/C P O Box 29292 Minneapolis, MN 55429
PLUMBER
AP Plumbing LLC 12433 Uplander St Coon Rapids, MN 55448
C & N Plumbing 11926 Summerset Lane Burnsville, MN 55337
Fritze Plumbing 9381 Trenton Lane N Maple Grove, MN 55369
Ike’s Plumbing 9046 Lake Drive Lexington, MN 55014
Northern Mechanical Contractors 1975 Seneca Rd #100 Eagan, MN 55122
Pipe Masters Inc 6316 Linden Lane Mound, MN 55364
Podany Plumbing Inc 1218 Sugar Lane Chaska, MN 55318
Pressure Creek Plumbing P O Box 1045 Princeton, MN 55371
Salzer Plumbing 14033 Commerce Ave NE Prior Lake, MN 55372
Voss Utility & Plumbing P O Box 240 885 Katydid Lane Hanover, MN 55341
Warners Stellian 550 Atwater Circle, St Paul, MN 55103
RENTAL – NEW
4517 Adair Ave N – Steve & Karolee Ondracek (Conditional)
3649 Colorado Ave N – Ross & Jon Hunter (Conditional)
3703 Colorado Ave N – HC 55422 3703 Co Av N Trust (Conditional)
3333 Edgewood Ave N – Joel Leatherman (Conditional)
5301 Hampshire Ave N – Flowers Estate Trust (Conditional)
3701 Vera Cruz Ave N – Nelson Family Foundation Real Estate Holdings LLC (Conditional)
3709 Vera Cruz Ave N – Nelson Family Foundation Real Estate Holdings LLC (Conditional)
3633 Vera Cruz Ave N – Nelson Family Foundation Real Estate Holdings LLC (Conditional)
4301 Welcome Ave N – Fresh Start Properties 3 LLC (Conditional)
5616 Wilshire Blvd – Daniel A Andresen
RENTAL – RENEWAL
3820 Adair Ave N – Scott Lindquist (Conditional)
5701 Adair Ave N – JDA Group LLC
6524 Brentwood Ave N – Eero & Nadya Mattson (Conditional)
4716 Edgewood Ave N – Leslie & Douglas Binstock (Conditional)
5126 Edgewood Ave N – Wally Anderson (Conditional)
5261 Edgewood Ave N – Steven & Kristina Malecha
5817 Hampshire Ave N – Deanna Forkey (Conditional)
3116 Idaho Ave N – Glen & Ruth Maroney (Conditional)
4818-4820 Idaho Ave N – Jason Flaa (Conditional)
4819-4821 Idaho Ave N – Cliff & Sharon Hanson (Conditional)
4825-4827 Idaho Ave N – Philip & Constance Andrzejek (Conditional)
4.1
Page 2 of 2
2925 Hampshire Ave N – Michael Kaldor (Conditional)
5419 Louisiana Ave N – Debra & Duane Sanovia (Conditional)
6325 Markwood Dr – Kevin & Nancy Walton
4616 Maryland Ave N – Godiva Properties LLC (Conditional)
5644 Maryland Ave N – IH2 Property Illinois, LP (Conditional)
3406 Noble Ave N – Susan Kowaliw (Conditional)
5733 Pennsylvania Ave N – Thomas & Kathleen Bohlinger (Conditional)
5610 Perry Ave N – Thanasak Sueblinvong (Conditional)
5737 Regent Ave N – Esso Properties LLC
5706 Sumter Ave N – Napsa One LLC (Conditional)
5417 Toledo Ave N – Scott & Betty Miles
4725 Welcome Ave N – Wally Anderson (Conditional)
5232 Welcome Ave N – Brummer Realty (Conditional)
5825 West Broadway – Adam Hardy (Conditional)
4730 Xenia Ave N – Ryan McArton (Conditional)
6518 – 31st Ave N – Toivo LLC (Conditional)
8308 – 32nd Pl N – Brent Rohs
8316 – 32nd Pl N – Christopher Narins
6600 – 34th Ave N – Matthew Healy (Conditional)
6806 – 34th Ave N – James & Lindsay Darrah (Conditional)
5125 – 34th Pl N – Christy Soles Wandrei
5608 – 36th Ave N – Jeremy & Sara Smude (Conditional)
5708 – 36th Ave N – Eugene Bryskin (Conditional)
6723 – 50th Ave N – Matthew Salden
6418 – 61st Ave N – Godiva Properties LLC
CITY OF CRYSTAL
RESOLUTION NO. 2016 -
RESOLUTION ACCEPTING DONATIONS FROM
CRYSTAL LIONS, PRESCRIPTION LANDSCAPE, VFW POST 494
AND VARIOUS INDIVIDUALS
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 RESOLVED by the City Council of the City of Crystal to accept the
following donations:
Donor Purpose Amount
Crystal Lions Crystal Frolics $2,000.00
Prescription Landscape Surplus street salt 115 tons
VFW Post 494 Crystal Airport Open House $1,000.00
Various individuals (K-9 Donation Boxes) Crystal K-9 Unit $136.20
And BE IT FURTHER RESOLVED that the Crystal City Council sincerely thanks the above-
named for their generous donations.
Dated this 19th day of July, 2016.
By:__________________________
Jim Adams, Mayor
ATTEST:
________________________________
Kim Therres, Assistant City Manager
4.2
MEMORANDUM
DATE: July 7, 2016
TO: Crystal City Council
City Manager Anne Norris
FROM: Administrative Services Coordinator Trudy Tassoni
SUBJECT: Application for Special Permit for Beer/Wine at Yunkers Park
Elizabeth Dahl has applied for a special permit to serve beer/wine at Yunkers Park on
Saturday, July 16, 2016, from 5 – 10 p.m., for up to 100 guests to attend a neighborhood get
together. The park has been reserved through the Crystal Recreation Department.
City Manager Anne Norris pre-approved this application on July 7, 2016, as the event was
being held prior to the next council meeting.
Council Action Requested
Approve the Special Permit for Beer/Wine submitted by Elizabeth Dahl.
The application is available for review in the city clerk’s office.
COUNCIL STAFF REPORT
Consent Agenda: Special Permit for Wine/Beer
Council Meeting: 7/19/2016
4.3
MEMORANDUM
DATE: July 14, 2016
TO: Crystal City Council
City Manager Anne Norris
FROM: City Clerk Chrissy Serres
SUBJECT: Application for Special Permit for Wine/Beer at Crystal Community Center
Big Ten Catering has applied for a special permit to serve wine/beer at Crystal Community
Center, for a quinceanera celebration for up to 250 guests on Saturday, July 23, 2016, from 5 –
11:45 p.m. Big Ten Catering has provided a copy of their State of Minnesota Alcohol
Caterer’s Permit, and paid all fees for this event.
Council Action Requested
As part of the Consent Agenda on July 19 , 2016, approve the Special Permit for Wine/Beer at
Crystal Community Center, submitted by Big Ten Catering.
The application is available for review in the city clerk’s office.
COUNCIL STAFF REPORT
Consent Agenda: Special Permit for Wine/Beer
Council Meeting: July 19, 2016
4.4
4.5
4.6
4.6
4.6
4.6
4.6
6.1
6.2
6.2
6.2
6.2
6.2
6.2
6.2
6.2
6.2
6.2
6.2
6.2
6.2
6.2
6.2
6.2
6.2
6.2
6.2
6.2
________________________________
* Preliminary; subject to change.
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PRELIMINARY OFFICIAL STATEMENT DATED JUNE 28, 2016
NEW ISSUE Moody’s Rating: Requested
BANK QUALIFIED
In the opinion of Kennedy & Graven, Chartered, Bond Counsel, based on present federal and Minnesota laws, regulations, rulings and decisions, and
assuming compliance with certain covenants, interest on the Bonds is excluded from gross income for federal income tax purposes and, to the same extent,
from taxable net income of individuals, estates and trusts for Minnesota income purposes, and is not a preference item for purposes of computing the federal
alternative minimum tax or the Minnesota alternative minimum tax imposed on individuals, trusts, and estates. Such interest is taken into account in
determining adjusted current earnings for the purpose of computing the federal alternative minimum tax imposed on certain corporations and is subject to
Minnesota franchise taxes on corporations (including financial institutions) measured by income. No opinion will be expressed by Bond Counsel regarding
other state or federal tax consequences caused by the receipt or accrua l of interest on the Bonds or arising with respect to ownership of the Bonds. See “TAX
EXEMPTION” and “OTHER FEDERAL TAX CONSIDERATIONS” herein for additional information.
$3,330,000* City of Crystal, Minnesota
General Obligation Improvement Bonds, Series 2016A
(the “Bonds”)
(Book Entry Only)
Dated Date: Date of Delivery Interest Due: Each February 1 and August 1,
commencing August 1, 2017 The Bonds will mature February 1 in the years and amounts* as follows:
2018 $340,000
2019 $255,000
2020 $245,000
2021 $240,000
2022 $235,000
2023 $230,000
2024 $220,000
2025 $215,000
2026 $210,000
2027 $205,000
2028 $200,000
2029 $195,000
2030 $185,000
2031 $180,000
2032 $175,000
Proposals for the Bonds may contain a maturity schedule providing for a combination of serial bonds and term
bonds. All term bonds shall be subject to mandatory sinking fund redemption at a price of par plus accrued interest
to the date of redemption scheduled to conform to the maturity schedule set forth above. The City may elect on February 1, 2026, and on any day thereafter, to prepay Bonds due on or after February 1,
2027 at a price of par plus accrued interest.
The Bonds are general obligations of the City for which the City pledges its full faith and credit and power to levy
direct general ad valorem taxes. In addition, the City will pledge special assessments against benefited properties
for repayment of the Bonds. The proceeds will be used to finance various street improvement projects within the
City.
Proposals shall be for not less than $3,296,700 plus accrued interest, if any, on the total principal amount of the
Bonds. Proposals shall specify rates in integral multiples of 1/100 or 1/8 of 1%. The initial price to the public for
each maturity must be 98.0% or greater. Following receipt of proposals, a good faith deposit will be required to be
delivered to the City by the lowest bidder as described in the “Terms of Proposal” herein. Award of the Bonds will
be made on the basis of True Interest Cost (TIC).
The City will designate the Bonds as “qualified tax-exempt obligations” pursuant to Section 265(b)(3) of the
Internal Revenue Code of 1986, as amended.
The Bonds will be issued as fully registered bonds without coupons and, when issued, will be registered in the
name of Cede & Co., as nominee of The Depository Trust Company (“DTC”). DTC will act as securities
depository for the Bonds. Individual purchases may be made in book entry form only, in the principal amount of
$5,000 and integral multiples thereof. Investors will not receive physical certificates representing their interest in
the Bonds purchased. (See “Book Entry System” herein.) U.S. Bank National Association, St. Paul, Minnesota
will serve as registrar (the “Registrar”) for the Bonds. The Bonds will be available for delivery at DTC on or about
August 25, 2016.
PROPOSALS RECEIVED: July 19, 2016 (Tuesday) until 10:00 A.M., Central Time AWARD: July 19, 2016 (Tuesday) at 7:00 P.M., Central Time
Further information may be obtained from SPRINGSTED Incorporated,
Municipal Advisor to the City, 380 Jackson Street, Suite 300, Saint Paul,
Minnesota 55101-2887 (651) 223-3000.
6.2
CITY OF CRYSTAL, MINNESOTA
CITY COUNCIL
Jim Adams Mayor
Elizabeth Dahl Council Member
Julie Deshler Council Member
Jeff Kolb Council Member
Laura Libby Council Member
Olga Parsons Council Member
Casey Peak Council Member
CITY MANAGER
Anne Norris
FINANCE DIRECTOR/TREASURER
Charles Hansen
MUNICIPAL ADVISOR
Springsted Incorporated
St. Paul, Minnesota
BOND COUNSEL
Kennedy & Graven, Chartered
Minneapolis, Minnesota
6.2
For purposes of compliance with Rule 15c2-12 of the Securities and Exchange Commission, this
document, as the same may be supplemented or corrected by the City from time to time, may be treated as
a Preliminary Official Statement with respect to the Bonds described herein that is deemed final as of the
date hereof (or of any such supplement or correction) by the City.
By awarding the Bonds to any underwriter or underwriting syndicate submitting a Proposal therefor, the
City agrees that, no more than seven business days after the date of such award, it shall provide without
cost to the senior managing underwriter of the syndicate to which the Bonds are awarded copies of the
Final Official Statement in the amount specified in the Terms of Proposal.
No dealer, broker, salesman or other person has been authorized by the City to give any information or to
make any representations with respect to the Bonds, other than as contained in the Preliminary Official
Statement or the Final Official Statement, and if given or made, such other information or representations
must not be relied upon as having been authorized by the City.
Certain information contained in the Preliminary Official Statement or the Final Official Statement may
have been obtained from sources other than records of the City and, while believed to be reliable, is not
guaranteed as to completeness or accuracy. THE INFORMATION AND EXPRESSIONS OF OPINION
IN THE PRELIMINARY OFFICIAL STATEMENT AND THE FINAL OFFICIAL STATEMENT ARE
SUBJECT TO CHANGE, AND NEITHER THE DELIVERY OF THE PRELIMINARY OFFICIAL
STATEMENT NOR THE FINAL OFFICIAL STATEMENT NOR ANY SALE MADE UNDER
EITHER SUCH DOCUMENT SHALL CREATE ANY IMPLICATION THAT THERE HAS BEEN NO
CHANGE IN THE AFFAIRS OF THE CITY SINCE THE RESPECTIVE DATE THEREOF.
References herein to laws, rules, regulations, resolutions, agreements, reports and other documents do not
purport to be comprehensive or definitive. All references to such documents are qualified in their entirety
by reference to the particular document, the full text of which may contain qualifications of and
exceptions to statements made herein. Where full texts have not been included as appendices to the
Preliminary Official Statement or the Final Official Statement, they will be furnished upon request.
Any CUSIP numbers for the Bonds included in the Final Official Statement are provided for convenience
of the owners and prospective investors. The CUSIP numbers for the Bonds are assigned by an
organization unaffiliated with the City. The City is not responsible for the selection of the CUSIP
numbers and makes no representation as to the accuracy thereof as printed on the Bonds or as set forth in
the Final Official Statement. No assurance can be given by the City that the CUSIP numbers for the
Bonds will remain the same after the delivery of the Final Official Statement or the date of issuance and
delivery of the Bonds.
6.2
TABLE OF CONTENTS
Page(s)
Terms of Proposal .............................................................................................................................. i-v
Introductory Statement ....................................................................................................................... 1
Continuing Disclosure ....................................................................................................................... 1
The Bonds .......................................................................................................................................... 2
Authority and Purpose ....................................................................................................................... 4
Sources and Uses of Funds ................................................................................................................ 4
Security and Financing ...................................................................................................................... 5
Future Financing ................................................................................................................................ 5
Litigation ............................................................................................................................................ 5
Legality .............................................................................................................................................. 5
Tax Exemption ................................................................................................................................... 5
Other Federal Tax Considerations ..................................................................................................... 6
Bank-Qualified Tax-Exempt Obligations .......................................................................................... 7
Rating ................................................................................................................................................. 7
Municipal Advisor ............................................................................................................................. 8
Certification ....................................................................................................................................... 8
City Property Values .......................................................................................................................... 9
City Indebtedness ............................................................................................................................... 10
City Tax Rates, Levies and Collections ............................................................................................. 13
Cash and Investments ........................................................................................................................ 14
General Information Concerning the City ......................................................................................... 15
Governmental Organization and Services .......................................................................................... 20
Proposed Form of Legal Opinion ............................................................................................ Appendix I
Continuing Disclosure Certificate ............................................................................................ Appendix II
Summary of Tax Levies, Payment Provisions, and
Minnesota Real Property Valuation ..................................................................................... Appendix III
Excerpt of 2015 Comprehensive Annual Financial Report ..................................................... Appendix IV
6.2
________________________________
* Preliminary; subject to change.
- i -
THE CITY HAS AUTHORIZED SPRINGSTED INCORPORATED TO NEGOTIATE THIS
ISSUE ON ITS BEHALF. PROPOSALS WILL BE RECEIVED ON THE FOLLOWING BASIS:
TERMS OF PROPOSAL
$3,330,000* CITY OF CRYSTAL, MINNESOTA GENERAL OBLIGATION IMPROVEMENT BONDS, SERIES 2016A
(BOOK ENTRY ONLY)
Proposals for the Bonds will be received on Tuesday, July 19, 2016, until 10:00 A.M., Central Time, at
the offices of Springsted Incorporated, 380 Jackson Street, Suite 300, Saint Paul, Minnesota, after which
time proposals will be opened and tabulated. Consideration for award of the Bonds will be by the
City Council at 7:00 P.M., Central Time, of the same day.
SUBMISSION OF PROPOSALS
Springsted will assume no liability for the inability of the bidder to reach Springsted prior to the time of
sale specified above. All bidders are advised that each proposal shall be deemed to constitute a contract
between the bidder and the City to purchase the Bonds regardless of the manner in which the proposal is
submitted.
(a) Sealed Bidding. Proposals may be submitted in a sealed envelope or by fax (651) 223-3046 to
Springsted. Signed proposals, without final price or coupons, may be submitted to Springsted prior to the
time of sale. The bidder shall be responsible for submitting to Springsted the final proposal price and
coupons, by telephone (651) 223-3000 or fax (651) 223-3046 for inclusion in the submitted proposal.
OR
(b) Electronic Bidding. Notice is hereby given that electronic proposals will be received via PARITY®.
For purposes of the electronic bidding process, the time as maintained by PARITY® shall constitute the
official time with respect to all proposals submitted to PARITY®. Each bidder shall be solely responsible
for making necessary arrangements to access PARITY® for purposes of submitting its electronic proposal
in a timely manner and in compliance with the requirements of the Terms of Proposal. Neither the City,
its agents nor PARITY® shall have any duty or obligation to undertake registration to bid for any
prospective bidder or to provide or ensure electronic access to any qualified prospective bidder, and
neither the City, its agents nor PARITY® shall be responsible for a bidder’s failure to register to bid or for
any failure in the proper operation of, or have any liability for any delays or interruptions of or any
damages caused by the services of PARITY®. The City is using the services of PARITY® solely as a
communication mechanism to conduct the electronic bidding for the Bonds, and PARITY® is not an agent
of the City.
If any provisions of this Terms of Proposal conflict with information provided by PARITY®, this Terms
of Proposal shall control. Further information about PARITY®, including any fee charged, may be
obtained from:
PARITY®, 1359 Broadway, 2nd Floor, New York, New York 10018
Customer Support: (212) 849-5000
6.2
- ii -
DETAILS OF THE BONDS
The Bonds will be dated as of the date of delivery and will bear interest payable on February 1 and
August 1 of each year, commencing August 1, 2017. Interest will be computed on the basis of a 360-day
year of twelve 30-day months.
The Bonds will mature February 1 in the years and amounts* as follows:
2018 $340,000
2019 $255,000
2020 $245,000
2021 $240,000
2022 $235,000
2023 $230,000
2024 $220,000
2025 $215,000
2026 $210,000
2027 $205,000
2028 $200,000
2029 $195,000
2030 $185,000
2031 $180,000
2032 $175,000
* The City reserves the right, after proposals are opened and prior to award, to increase or reduce the principal
amount of the Bonds or the amount of any maturity in multiples of $5,000. In the event the amount of any
maturity is modified, the aggregate purchase price will be adjusted to result in the same gross spread per
$1,000 of Bonds as that of the original proposal. Gross spread is the differential between the price paid to the
City for the new issue and the prices at which the securities are initially offered to the investing public.
Proposals for the Bonds may contain a maturity schedule providing for a combination of serial bonds and
term bonds. All term bonds shall be subject to mandatory sinking fund redemption at a price of par plus
accrued interest to the date of redemption scheduled to conform to the maturity schedule set forth above.
In order to designate term bonds, the proposal must specify “Years of Term Maturities” in the spaces
provided on the proposal form.
BOOK ENTRY SYSTEM
The Bonds will be issued by means of a book entry system with no physical distribution of Bonds made
to the public. The Bonds will be issued in fully registered form and one Bond, representing the aggregate
principal amount of the Bonds maturing in each year, will be registered in the name of Cede & Co. as
nominee of The Depository Trust Company (“DTC”), New York, New York, which will act as securities
depository of the Bonds. Individual purchases of the Bonds may be made in the principal amount of
$5,000 or any multiple thereof of a single maturity through book entries made on the books and records of
DTC and its participants. Principal and interest are payable by the registrar to DTC or its nominee as
registered owner of the Bonds. Transfer of principal and interest payments to participants of DTC will be
the responsibility of DTC; transfer of principal and interest payments to beneficial owners by participants
will be the responsibility of such participants and other nominees of beneficial owners. The purchaser, as
a condition of delivery of the Bonds, will be required to deposit the Bonds with DTC.
REGISTRAR
The City will name the registrar which shall be subject to applicable SEC regulations. The City will pay
for the services of the registrar.
OPTIONAL REDEMPTION
The City may elect on February 1, 2026, and on any day thereafter, to prepay Bonds due on or after
February 1, 2027. Redemption may be in whole or in part and if in part at the option of the City and in
such manner as the City shall determine. If less than all Bonds of a maturity are called for redemption,
the City will notify DTC of the particular amount of such maturity to be prepaid. DTC will determine by
lot the amount of each participant's interest in such maturity to be redeemed and each participant will then
select by lot the beneficial ownership interests in such maturity to be redeemed. All prepayments shall be
at a price of par plus accrued interest.
6.2
- iii -
SECURITY AND PURPOSE
The Bonds will be general obligations of the City for which the City will pledge its full faith and credit
and power to levy direct general ad valorem taxes. In addition the City will pledge special assessments
against benefited properties for repayment of the Bonds. The proceeds will be used to finance various
street improvement projects within the City.
BIDDING PARAMETERS
Proposals shall be for not less than $3,296,700 plus accrued interest, if any, on the total principal amount
of the Bonds. No proposal can be withdrawn or amended after the time set for receiving proposals unless
the meeting of the City scheduled for award of the Bonds is adjourned, recessed, or continued to another
date without award of the Bonds having been made. Rates shall be in integral multiples of 1/100 or 1/8 of
1%. The initial price to the public for each maturity must be 98.0% or greater. Bonds of the same
maturity shall bear a single rate from the date of the Bonds to the date of maturity. No conditional
proposals will be accepted.
GOOD FAITH DEPOSIT
To have its proposal considered for award, the lowest bidder is required to submit a good faith deposit to
the City in the amount of $33,300 (the “Deposit”) no later than 1:00 P.M., Central Time on the day of
sale. The Deposit may be delivered as described herein in the form of either (i) a certified or cashier’s
check payable to the City; or (ii) a wire transfer. The lowest bidder shall be solely responsible for the
timely delivery of their Deposit whether by check or wire transfer. Neither the City nor
Springsted Incorporated have any liability for delays in the receipt of the Deposit. If the Deposit is not
received by the specified time, the City may, at its sole discretion, reject the proposal of the lowest bidder,
direct the second lowest bidder to submit a Deposit, and thereafter award the sale to such bidder.
Certified or Cashier’s Check. A Deposit made by certified or cashier’s check will be considered timely
delivered to the City if it is made payable to the City and delivered to Springsted Incorporated,
380 Jackson Street, Suite 300, St. Paul, Minnesota 55101 by the specified time.
Wire Transfer. A Deposit made by wire will be considered timely delivered to the City upon submission
of a federal wire reference number by the specified time. Wire transfer instructions will be available from
Springsted Incorporated following the receipt and tabulation of proposals. The successful bidder must
send an e-mail including the following information: (i) the federal reference number and time released;
(ii) the amount of the wire transfer; and (iii) the issue to which it applies.
Once an award has been made, the Deposit received from the lowest bidder (the “purchaser”) will be
retained by the City and no interest will accrue to the purchaser. The amount of the Deposit will be
deducted at settlement from the purchase price. In the event the purchaser fails to comply with the
accepted proposal, said amount will be retained by the City.
AWARD
The Bonds will be awarded on the basis of the lowest interest rate to be determined on a true interest cost
(TIC) basis calculated on the proposal prior to any adjustment made by the City. The City's computation
of the interest rate of each proposal, in accordance with customary practice, will be controlling.
The City will reserve the right to: (i) waive non-substantive informalities of any proposal or of matters
relating to the receipt of proposals and award of the Bonds, (ii) reject all proposals without cause, and
(iii) reject any proposal that the City determines to have failed to comply with the terms herein.
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BOND INSURANCE AT PURCHASER'S OPTION
The City has not applied for or pre-approved a commitment for any policy of municipal bond insurance
with respect to the Bonds. If the Bonds qualify for municipal bond insurance and a bidder desires to
purchase a policy, such indication, the maturities to be insured, and the name of the desired insurer must
be set forth on the bidder’s proposal. The City specifically reserves the right to reject any bid specifying
municipal bond insurance, even though such bid may result in the lowest TIC to the City. All costs
associated with the issuance and administration of such policy and associated ratings and expenses (other
than any independent rating requested by the City) shall be paid by the successful bidder. Failure of the
municipal bond insurer to issue the policy after the award of the Bonds shall not constitute cause for
failure or refusal by the successful bidder to accept delivery of the Bonds.
CUSIP NUMBERS
If the Bonds qualify for assignment of CUSIP numbers such numbers will be printed on the Bonds, but
neither the failure to print such numbers on any Bond nor any error with respect thereto will constitute
cause for failure or refusal by the purchaser to accept delivery of the Bonds. The CUSIP Service Bureau
charge for the assignment of CUSIP identification numbers shall be paid by the purchaser.
SETTLEMENT
On or about August 25, 2016, the Bonds will be delivered without cost to the purchaser through DTC in
New York, New York. Delivery will be subject to receipt by the purchaser of an approving legal opinion
of Kennedy & Graven, Chartered of Minneapolis, Minnesota, and of customary closing papers, including
a no-litigation certificate. On the date of settlement, payment for the Bonds shall be made in federal, or
equivalent, funds that shall be received at the offices of the City or its designee not later than 12:00 Noon,
Central Time. Unless compliance with the terms of payment for the Bonds has been made impossible by
action of the City, or its agents, the purchaser shall be liable to the City for any loss suffered by the City
by reason of the purchaser's non-compliance with said terms for payment.
CONTINUING DISCLOSURE
In accordance with SEC Rule 15c2-12(b)(5), the City will undertake, pursuant to the resolution awarding
sale of the Bonds, to provide annual reports and notices of certain events. A description of this
undertaking is set forth in the Official Statement. The purchaser's obligation to purchase the Bonds will
be conditioned upon receiving evidence of this undertaking at or prior to delivery of the Bonds.
OFFICIAL STATEMENT
The City has authorized the preparation of a Preliminary Official Statement containing pertinent
information relative to the Bonds, and said Preliminary Official Statement will serve as a nearly final
Official Statement within the meaning of Rule 15c2-12 of the Securities and Exchange Commission. For
copies of the Preliminary Official Statement or for any additional information prior to sale, any
prospective purchaser is referred to the Municipal Advisor to the City, Springsted Incorporated,
380 Jackson Street, Suite 300, Saint Paul, Minnesota 55101, telephone (651) 223-3000.
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A Final Official Statement (as that term is defined in Rule 15c2-12) will be prepared, specifying the
maturity dates, principal amounts and interest rates of the Bonds, together with any other information
required by law. By awarding the Bonds to an underwriter or underwriting syndicate, the City agrees
that, no more than seven business days after the date of such award, it shall provide without cost to the
sole underwriter or to the senior managing underwriter of the syndicate (the “Underwriter” for purposes
of this paragraph) to which the Bonds are awarded up to 25 copies of the Final Official Statement. The
City designates the Underwriter of the syndicate to which the Bonds are awarded as its agent for purposes
of distributing copies of the Final Official Statement to each Participating Underwriter. Such Underwriter
agrees that if its proposal is accepted by the City, (i) it shall accept designation and (ii) it shall enter into a
contractual relationship with all Participating Underwriters of the Bonds for purposes of assuring the
receipt by each such Participating Underwriter of the Final Official Statement.
Dated June 7, 2016 BY ORDER OF THE CITY COUNCIL
/s/ Christina Serres
City Clerk
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____________________________
* Preliminary; subject to change.
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OFFICIAL STATEMENT
$3,330,000*
CITY OF CRYSTAL, MINNESOTA
GENERAL OBLIGATION IMPROVEMENT BONDS, SERIES 2016A
(BOOK ENTRY ONLY)
INTRODUCTORY STATEMENT
This Official Statement contains certain information relating to the City of Crystal, Minnesota (the
“City”) and its issuance of $3,330,000* General Obligation Improvement Bonds, Series 2016A (the
“Bonds”). The Bonds are general obligations of the City for which it pledges its full faith and credit and
power to levy direct general ad valorem taxes. In addition, the City will pledge special assessments
against benefited properties for repayment of the Bonds.
Inquiries may be directed to Mr. Charles Hansen, Finance Director/Treasurer, City of Crystal,
4141 Douglas Drive North, Crystal, Minnesota 55422-1696, by telephoning (763) 531-1000, or by
emailing Charles.Hansen@crystalmn.gov. Inquiries may also be made to Springsted Incorporated,
380 Jackson Street, Suite 300, St. Paul, Minnesota 55101-2887, by telephoning (651) 223-3000, or by
emailing bond_services@springsted.com.
CONTINUING DISCLOSURE
In order to assist the Underwriters in complying with SEC Rule 15c2-12 promulgated by the Securities
and Exchange Commission, pursuant to the Securities Exchange Act of 1934, as the same may be
amended from time to time, and official interpretations thereof (the “Rule”), pursuant to the resolut ion
awarding the sale of the Bonds (the “Award Resolution”), the City has entered into an undertaking (the
“Undertaking”) for the benefit of holders including beneficial owners of the Bonds to provide certain
financial information and operating data relating to the City to the Electronic Municipal Market Access
system (“EMMA”) annually, and to provide notices of the occurrence of certain events enumerated in the
Rule to EMMA or the Municipal Securities Rulemaking Board (“MSRB”). The specific nature of the
Undertaking, as well as the information to be contained in the annual report or the notices of material
events is set forth in the Continuing Disclosure Certificate to be executed and delivered by the City at the
time the Bonds are delivered in substantially the form attached hereto as Appendix II.
To the best of its knowledge, the City has complied for the past five years in all material respects in
accordance with the terms of its previous continuing disclosure undertakings entered into pursuant to the
Rule. In the interest of full disclosure, the City notes the following, which is presented irrespective of
materiality:
Within the past five years, Moody’s Investors Service has changed the credit ratings of certain
municipal bond insurance firms, which resulted in the change of the insured ratings of certain debt
issues of the City. Material event notices regarding certain insurance rating changes have not been
filed; however, the information was publicly available through other sources.
6.2
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A failure by the City to comply with the Undertaking will not constitute an event of default on the Bonds
(although holders will have any available remedy at law or in equity). Nevertheless, such a failure must
be reported in accordance with the Rule and must be considered by any broker, dealer or municipal
securities dealer before recommending the purchase or sale of the Bonds in the secondary market.
Consequently, such a failure may adversely affect the transferability and liquidity of the Bonds and their
market price.
THE BONDS
General Description
The Bonds are dated as of the date of delivery and will mature annually on February 1 as set forth on the
front cover of this Official Statement. The Bonds are issued in book entry form. Interest on the Bonds is
payable on February 1 and August 1 of each year, commencing August 1, 2017. Interest will be payable
to the holder (initially Cede & Co.) registered on the books of the Registrar as of the fifteenth day of the
calendar month next preceding such interest payment date. Interest will be computed on the basis of a
360-day year of twelve 30-day months. Principal of and interest on the Bonds will be paid as described in
the section herein entitled “Book Entry System.” U.S. Bank National Association, St. Paul, Minnesota
will serve as Registrar for the Bonds, and the City will pay for registrar services.
Redemption Provisions
Thirty days’ written notice of redemption shall be given to the registered owner(s) of the Bonds. Failure
to give such written notice to any registered owner of the Bonds or any defect therein shall not affect the
validity of any proceedings for the redemption of the Bonds. All Bonds or portions thereof called for
redemption will cease to bear interest after the specified redemption date, provided funds for their
redemption are on deposit at the place of payment.
Optional Redemption
The City may elect on February 1, 2026, and on any day thereafter, to prepay Bonds due on or after
February 1, 2027. Redemption may be in whole or in part and if in part at the option of the City and in
such manner as the City shall determine. If less than all the Bonds of a maturity are called for
redemption, the City will notify DTC of the particular amount of such maturity to be prepaid. DTC will
determine by lot the amount of each participant’s interest in such maturity to be redeemed and each
participant will then select by lot the beneficial ownership interests in such maturity to be redeemed. All
prepayments shall be at a price of par plus accrued interest.
Book Entry System
The Depository Trust Company (“DTC”), New York, New York, will act as securities deposi tory for the
Bonds. The Bonds will be issued as fully-registered securities registered in the name of Cede & Co.
(DTC’s partnership nominee) or such other name as may be requested by an authorized representative of
DTC. One fully-registered certificate will be issued for each maturity of the Bonds, each in the aggregate
principal amount of such maturity, and will be deposited with DTC.
DTC is a limited-purpose trust company organized under the New York Banking Law, a “banking
organization” within the meaning of the New York Banking Law, a member of the Federal Reserve
System, a “clearing corporation” within the meaning of the New York Uniform Commercial Code, and a
“clearing agency” registered pursuant to the provisions of Section 17A of the Securities Exchange Act of
1934. DTC holds and provides asset servicing for over 3.5 million issues of U.S. and non-U.S. equity
6.2
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issues, corporate and municipal debt issues, and money market instruments (from over 100 countries) that
DTC’s participants (“Direct Participants”) deposit with DTC. DTC also facilitates the post-trade
settlement among Direct Participants of sales and other securities transactions in deposited securities
through electronic computerized book-entry transfers and pledges between Direct Participants’ accounts.
This eliminates the need for physical movement of securities certificates. Direct Participants include both
U.S. and non-U.S. securities brokers and dealers, banks, trust companies, clearing corporations, and
certain other organizations. DTC is a wholly-owned subsidiary of The Depository Trust & Clearing
Corporation (“DTCC”). DTCC is the holding company for DTC, National Securities Clearing
Corporation, and Fixed Income Clearing Corporation all of which are registered clearing agencies.
DTCC is owned by the users of its regulated subsidiaries. Access to the DTC system is also available to
others such as both U.S. and non-U.S. securities brokers and dealers, banks, trust companies and clearing
corporations that clear through or maintain a custodial relationship with a Direct Participant, either
directly or indirectly (“Indirect Participants”). The DTC Rules applicable to its Participants are on file
with the Securities and Exchange Commission. More information about DTC can be found at
www.dtcc.com.
Purchases of Bonds under the DTC system must be made by or through Direct Participants, which will
receive a credit for the Bonds on DTC’s records. The ownership interest of each actual purchaser of each
Bond (“Beneficial Owner”) is in turn to be recorded on the Direct and Indirect Participants’ records.
Beneficial Owners will not receive written confirmation from DTC of their purchase. Beneficial Owners
are, however, expected to receive written confirmations providing details of the transaction, as well as
periodic statements of their holdings, from the Direct or Indirect Participant through which the Beneficial
Owner entered into the transaction. Transfers of ownership interests in the Bonds are to be accomplished
by entries made on the books of Direct and Indirect Participants acting on behalf of Beneficial Owners.
Beneficial Owners will not receive certificates representing their ownership interests in the Bonds, except
in the event that use of the book-entry system for the Bonds is discontinued.
To facilitate subsequent transfers, all Bonds deposited by Direct Participants with DTC are registered in
the name of DTC’s partnership nominee, Cede & Co., or such other name as may be requested by an
authorized representative of DTC. The deposit of Bonds with DTC and their registration in the name of
Cede & Co. or such other DTC nominee do not effect any change in beneficial ownership. DTC has no
knowledge of the actual Beneficial Owners of the Bonds; DTC’s records reflect only the identity of the
Direct Participants to whose accounts such Bonds are credited, which may or may not be the Beneficial
Owners. The Direct and Indirect Participants will remain responsible for keeping account of their
holdings on behalf of their customers.
Conveyance of notices and other communications by DTC to Direct Participants, by Direct Participants to
Indirect Participants, and by Direct Participants and Indirect Participants to Beneficial Owners will be
governed by arrangements among them, subject to any statutory or regulatory requirements as may be in
effect from time to time. Beneficial Owners of Bonds may wish to take certain steps to augment the
transmission to them of notices of significant events with respect to the Bonds, such as redemptions,
tenders, defaults, and proposed amendments to the Bond documents. For example, Beneficial Owners of
the Bonds may wish to ascertain that the nominee holding the Bonds for their benefit has agreed to obtain
and transmit notices to Beneficial Owners. In the alternative, Beneficial Owners may wish to provide
their names and addresses to the registrar and request that copies of notices be provided directly to them.
Redemption notices shall be sent to DTC. If less than all of the Bonds within a maturity are being
redeemed, DTC’s practice is to determine by lot the amount of the interest of each Direct Participant in
such maturity to be redeemed.
Neither DTC nor Cede & Co. (nor any other DTC nominee) will consent or vote with respect to the
Bonds unless authorized by a Direct Participant in accordance with DTC’s MMI procedures. Under its
usual procedures, DTC mails an Omnibus Proxy to the City as soon as possible after the record date. The
Omnibus Proxy assigns Cede & Co.’s consenting or voting rights to those Direct Participants to whose
accounts the Bonds are credited on the record date (identified in a listing attached to the Omnibus Proxy).
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Redemption proceeds, distributions, and dividend payments on the Bonds will be made to Cede & Co. or
such other nominee as may be requested by an authorized representative of DTC. DTC’s practice is to
credit Direct Participants’ accounts upon DTC’s receipt of funds and corresponding detail information
from the City or its agent on the payable date in accordance with their respective holdings shown on
DTC’s records. Payments by Participants to Beneficial Owners will be governed by standing instructions
and customary practices, as is the case with securities held for the accounts of customers in bearer form or
registered in “street name,” and will be the responsibility of such Participant and not of DTC or the City,
subject to any statutory or regulatory requirements as may be in effect from time to time. Payment of
redemption proceeds, distributions, and dividend payments to Cede & Co. (or such other nominee as may
be requested by an authorized representative of DTC) is the responsibility of the City or its agent,
disbursement of such payments to Direct Participants will be the responsibility of DTC, and disbursement
of such payments to the Beneficial Owners will be the responsibility of Direct and Indirect Participants.
DTC may discontinue providing its services as depository with respect to the Bonds at any time by giving
reasonable notice to City or its agent. Under such circumstances, in the event that a successor depository
is not obtained, certificates are required to be printed and delivered.
The City may decide to discontinue use of the system of book-entry-only transfers through DTC (or a
successor securities depository). In that event, certificates will be printed and delivered to DTC.
The information in this section concerning DTC and DTC’s book-entry system has been obtained from
sources that the City believes to be reliable, but the City takes no responsibility for the accuracy thereof.
AUTHORITY AND PURPOSE
The Bonds are being issued pursuant to Minnesota Statutes, Chapters 429 and 475. The proceeds of the
Bonds, along with available City funds, will be used to finance various street improvement projects
within the City.
SOURCES AND USES OF FUNDS
The composition of the Bonds is estimated to be as follows:
Sources of Funds:
Principal Amount $3,330,000
Available City Funds 2,299,092
Prepaid Assessments 774,045
Total Sources of Funds $6,403,137
Uses of Funds:
Deposit to Construction Fund $6,323,137
Costs of Issuance 46,700
Allowance for Discount Bidding 33,300
Total Uses of Funds $6,403,137
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SECURITY AND FINANCING
The Bonds will be general obligations of the City for which the City will pledge its full faith and credit
and power to levy direct general ad valorem taxes. In addition, the City will pledge special assessments
against benefited properties for repayment of the Bonds. Special assessments in the principal amount of
approximately $4,024,045 are expected to be filed on or about October 1, 2016 for first collection in
2017. The City anticipates receiving prepayments of approximately $774,045. The remaining
assessments in the amount of $3,250,000 will be collected over a term of 15 years with equal annual
payments of principal. Interest on the unpaid balance will be charged at an interest rate of 4.50%. Each
year’s collection of special assessments, if collected in full, will be sufficient to pay 105% of the debt
service due on the Bonds in each year. The City does not anticipate the need to levy taxes for repayment
of the Bonds.
FUTURE FINANCING
The City does not anticipate issuing any additional long-term general obligation debt within the next
90 days.
LITIGATION
The City is not aware of any threatened or pending litigation affecting the validity of the Bonds or the
City's ability to meet its financial obligations.
LEGALITY
The Bonds are subject to approval as to certain matters by Kennedy & Graven, Chartered of Minneapolis,
Minnesota, as Bond Counsel. Bond Counsel has not participated in the preparation of this Official
Statement and will not pass upon its accuracy, completeness, or sufficiency. Bond Counsel has not
examined nor attempted to examine or verify any of the financial or statistical statements or data
contained in this Official Statement and will express no opinion with respect thereto. A legal opinion in
substantially the form set out in Appendix I herein will be delivered at closing.
TAX EXEMPTION
In the opinion of Kennedy & Graven, Chartered, Bond Counsel, under federal and Minnesota laws,
regulations, rulings and decisions in effect on the date of issuance of the Bonds, interest on the Bonds is
excludable from gross income for federal income tax purposes, and, to the same extent, from taxable net
income of individuals, estates and trusts for Minnesota income tax purposes. Interest on the Bonds is
includable in taxable income of corporations and financial institutions for purposes of the Minnesota
franchise tax. Certain provisions of the Internal Revenue Code of 1986, as amended (the “Code”),
however, impose continuing requirements that must be met after the issuance of the Bonds in order for
interest thereon to be and remain excludable from federal gross income and, to the same extent, from
Minnesota taxable net income. Noncompliance with such requirements by the City may cause the interest
6.2
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on the Bonds to be includable in gross income for purposes of federal income taxation and, to the same
extent, includable in taxable net income for purposes of Minnesota income taxation, retroactive to the
date of issuance of the Bonds, irrespective in some cases of the date on which such noncompliance is
ascertained. No provision has been made for redemption of Bonds or for an increase in the interest rate
on the Bonds in the event that interest on the Bonds becomes includable in federal gross income or
Minnesota taxable income.
Interest on the Bonds is not an item of tax preference includable in alternative minimum taxable income
for purposes of the federal alternative minimum tax applicable to all taxpayers or the Minnesota
alternative minimum tax applicable to individuals, estates and trusts, but is includable in adjusted current
earnings in determining the federal alternative minimum taxable income of corporations for purposes of
the federal alternative minimum tax. Interest on the Bonds may be includable in the income of a foreign
corporation for purposes of the branch profits tax imposed by Section 884 of the Code and is includable
in the net investment income of foreign insurance companies for purposes of Section 842(b) of the Code.
In the case of an insurance company subject to the tax imposed by Section 831 of the Code, the amount
which otherwise would be taken into account as losses incurred under Section 832(b)(5) of the Code must
be reduced by an amount equal to fifteen percent of the interest on the Bonds that is received or accrued
during the taxable year. Section 86 of the Code requires recipients of certain Social Security and railroad
retirement benefits to take into account, in determining the taxability of such benefits, receipts or accruals
of interest on the Bonds.
OTHER FEDERAL TAX CONSIDERATIONS
Property and Casualty Insurance Companies
Property and casualty insurance companies are required to reduce the amount of their loss reserve
deduction by 15% of the amount of tax-exempt interest received or accrued during the taxable year on
certain obligations, including interest on the Bonds.
Foreign Insurance Companies
Foreign companies carrying on an insurance business in the United States are subject to a tax on income
which is effectively connected with their conduct of any trade or business in the United States, including
“net investment income.” Net investment income i ncludes tax-exempt interest such as interest on the
Bonds.
Branch Profits Tax
A foreign corporation is subject to a branch profits tax equal to 30% of the “dividend equivalent amount”
for the taxable year. The “dividend equivalent amount” is the foreign corporation's “effectively
connected earnings and profits” adjusted for increase or decrease in “U.S. net equity.” A branch's
earnings and profits may include tax-exempt municipal bond interest, such as interest on the Bonds.
Passive Investment Income of S Corporations
Passive investment income, including interest on the Bonds, may be subject to federal income taxation
under Section 1375 of the Code for an S corporation that has Subchapter C earnings and profits at the
close of the taxable year if more than 25% of the gross receipts of such S corporation is passive
investment income.
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Financial Institutions
Prior to the adoption of the Code, financial institutions were generally permitted to deduct 80% of their
interest expenses allocable to the ownership of tax-exempt obligations. Under the Code, financial
institutions are generally not entitled to a deduction for tax-exempt obligations purchased after August 7,
1986. However, the City will designate the Bonds as qualified tax-exempt obligations pursuant to
Section 265(b)(3) of the Code which permits financial institutions to deduct interest expenses allocable to
the Bonds to the extent permitted under prior law.
Future Tax Legislation
The exclusion of interest on the Bonds from gross income from federal income tax purposes and the
exclusion of interest on the Bonds from the net taxable income of individuals, estates, and trusts for State
income tax purposes is not mandated or guaranteed by the United States Constitution or the Minnesota
Constitution. Accordingly, federal laws providing that interest on the obligations of the states and the
political subdivisions of the states is not includable in gross income for federal income tax purposes and
Minnesota laws providing that interest on the obligations of the State is not includable in the net taxable
income of individuals, estates, and trusts for State income tax purposes may be subject to change. In the
event federal or Minnesota law is amended in a manner that results in interest on the Bonds becoming
subject to federal or Minnesota income taxation, or if federal or Minnesota income tax rates are reduced,
the market value of the Bonds may be adversely affected.
General
The preceding is not a comprehensive list of all federal or State tax consequences which may arise from
the receipt or accrual of interest on the Bonds. The receipt or accrual of interest on the Bonds may
otherwise affect the federal income tax (or Minnesota income tax or franchise tax) liability of the
recipient based on the particular taxes to which the recipient is subject and the particular tax status of
other items of income or deductions. All prospective purchasers of the Bonds are advised to consult their
own tax advisors as to the tax consequences of, or tax considerations for, purchasing or holding the
Bonds.
BANK-QUALIFIED TAX-EXEMPT OBLIGATIONS
The City will designate the Bonds as “qualified tax-exempt obligations” for purposes of Section 265(b)(3)
of the Code, relating to the ability of financial institutions to deduct from income for federal income tax
purposes, interest expense that is allocable to carrying and acquiring tax-exempt obligations.
RATING
Application for a rating of the Bonds has been made to Moody’s Investors Service (“Moody’s”), 7 World
Trade Center, 250 Greenwich Street, 23rd Floor, New York, New York. If a rating is assigned, it will
reflect only the opinion of Moody’s. Any explanation of the significance of the rating may be obtained
only from Moody’s.
There is no assurance that the rating, if assigned, will continue for any given period of time, or that such
rating will not be revised, suspended or withdrawn, if, in the judgment of Moody’s, circumstances so
warrant. A revision, suspension or withdrawal of a rating may have an adverse effect on the market price
of the Bonds.
6.2
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MUNICIPAL ADVISOR
The City has retained Springsted Incorporated, Public Sector Advisors, of St. Paul, Minnesota
(“Springsted”), as municipal advisor in connection with certain aspects of the issuance of the Bonds. In
preparing this Official Statement, Springsted has relied upon governmental officials, and other sources,
who have access to relevant data to provide accurate information for this Official Statement, and
Springsted has not been engaged, nor has it undertaken, to independently verify the accuracy of such
information. Springsted is not a public accounting firm and has not been engaged by the City to compile,
review, examine or audit any information in this Official Statement in accordance with accounting
standards. Springsted is an independent advisory firm, registered as a municipal advisor, and is not
engaged in the business of underwriting, trading or distributing municipal securities or other public
securities.
CERTIFICATION
The City has authorized the distribution of the Preliminary Official Statement for use in connection with
the initial sale of the Bonds and a Final Official Statement following award of the Bonds. The Purchaser
will be furnished with a certificate signed by the appropriate officers of the City stating that the City
examined each document and that, as of the respective date of each and the date of such certificate, each
document did not and does not contain any untrue statement of material fact or omit to state a material
fact necessary, in order to make the statements made therein, in light of the circumstances under which
they were made, not misleading.
(The Balance of This Page Has Been Intentionally Left Blank)
6.2
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CITY PROPERTY VALUES
Trend of Values(a)
Assessment/ Assessor’s Market Value Adjusted
Collection Estimated Sales Economic Homestead Taxable Taxable Net
Year Market Value Ratio(b) Market Value(c) Exclusion Market Value Tax Capacity
2015/16 $1,498,404,000 N/A N/A $153,994,496 $1,339,237,404 $17,835,544
2014/15 1,453,951,700 93.3% $1,557,406,354 155,659,387 1,293,693,713 17,570,450
2013/14 1,308,006,500 91.9 1,423,118,921 168,357,448 1,135,611,852 15,961,560
2012/13 1,311,691,400 97.5 1,347,505,588 170,201,504 1,136,761,834 15,865,985
2011/12 1,457,765,100 104.7 1,392,170,897 N/A 1,292,737,247 17,447,662
(a) For a description of the Minnesota property tax system, see Appendix III. (b) Sales Ratio Study for the year of assessment as posted by the Minnesota Department of Revenue,
http://www.revenue.state.mn.us/propertytax/Pages/statistics-imv.aspx. (c) Economic market values for the year of assessment as posted by the Minnesota Department of Revenue,
http://www.revenue.state.mn.us/propertytax/Pages/statistics-imv.aspx.
Source: Hennepin County, Minnesota, May 2016, except as otherwise noted.
2015/16 Adjusted Taxable Net Tax Capacity: $17,835,544
Real Estate:
Residential Homestead $10,402,990 68.2%
Commercial/Industrial and Railroad 3,023,877 19.9
Residential Non-Homestead 1,462,415 9.6
Seasonal Recreational and Other 111,280 0.7
Personal Property 249,718 1.6
2015/16 Net Tax Capacity $15,250,280 100.0%
Less: Captured Tax Increment (325,706)
Contribution to Fiscal Disparities (1,088,334)
Plus: Distribution from Fiscal Disparities 3,999,304
2015/16 Adjusted Taxable Net Tax Capacity $17,835,544
6.2
- 10 -
Ten of the Largest Taxpayers in the City
2015/16 Net
Taxpayer Type of Property Tax Capacity
Crystal Shopping Center Association Shopping Center $ 293,250
Target Corporation Department Store 188,250
Crystal Medical Building LLC Commercial 178,910
Crystal Village Apartments, LLC Apartments 172,513
SuperValu, Inc. Grocery Store 161,250
Calibre Chase Partners LTD Apartments 143,475
Individual Apartments 142,750
Crystal Gallery Development Commercial 139,350
Xcel Energy Utility 113,126
Lanel Crystal Estates LLC Apartments 105,225
Total $1,638,099*
* Represents 9.2% of the City's 2015/16 adjusted taxable net tax capacity.
CITY INDEBTEDNESS
Legal Debt Limit and Debt Margin*
Legal Debt Limit (3% of 2015/16 Estimated Market Value) $44,952,120
Less: Outstanding Debt Subject to Limit (765,000)
Legal Debt Margin as of August 25, 2016 $44,187,120
* The legal debt margin is referred to statutorily as the “Net Debt Limit” and may be increased by debt service
funds and current revenues which are applicable to the payment of debt in the current fiscal year.
NOTES: Certain types of debt are not subject to the legal debt limit. See Appendix III – Debt Limitations.
The 2013 Minnesota Legislature clarified the definition of estimated market value and established it as
the basis for the calculation of the Net Debt Limit. A large contributing factor to the change was to
offset the effect of the Market Value Homestead Exclusion implemented by the 2012 Minnesota
Legislature, which had a significant impact on taxable market values.
General Obligation Debt Supported Solely by Taxes*
Est. Principal
Date Original Final Outstanding
of Issue Amount Purpose Maturity As of 8-25-16
9-1-05 $2,395,000 Aquatic Center 2-1-2020 $765,000
* This issue is subject to the legal debt limit.
6.2
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General Obligation Special Assessment Debt*
Est. Principal
Date Original Final Outstanding
of Issue Amount Purpose Maturity As of 8-25-16
8-1-08 $2,190,000 Improvements 2-1-2024 $ 1,045,000
8-1-09 3,360,000 Improvements 2-1-2030 2,200,000
8-1-11 1,705,000 Improvements 2-1-2027 1,155,000
8-1-12 2,635,000 Improvements 2-1-2028 2,000,000
8-1-13 3,235,000 Improvements 2-1-2029 2,770,000
7-16-15 2,550,000 Improvements 2-1-2031 2,550,000
8-25-16 3,330,000 Improvements (the Bonds) 2-1-2032 3,330,000
Total $15,050,000
* Excludes the City’s General Obligation Improvement Bonds, Series 2005A and General Obligation
Improvement Bonds, Series 2006A. The City will use available funds on hand to call these bonds in full on
August 1, 2016.
Estimated Calendar Year Debt Service Payments Including the Bonds
G.O. Debt Supported G.O. Special
Solely by Taxes Assessment Debt
Principal Principal
Year Principal & Interest Principal & Interest(a)
2016 (at 8-25) (Paid) (Paid) (Paid) (Paid)
2017 $180,000 $207,000 $ 1,115,000 $ 1,493,910
2018 185,000 204,700 1,400,000 1,752,661
2019 195,000 207,100 1,285,000 1,607,466
2020 205,000 209,100 1,245,000 1,537,006
2021 1,215,000 1,475,874
2022 1,180,000 1,409,720
2023 1,155,000 1,353,396
2024 1,125,000 1,291,529
2025 985,000 1,121,963
2026 960,000 1,070,249
2027 930,000 1,013,918
2028 825,000 883,940
2029 670,000 706,718
2030 465,000 484,268
2031 320,000 328,105
2032 175,000 177,013
Total $765,000 $827,900 $15,050,000(b) $17,707,736
(a) Includes the Bonds at an assumed average annual interest rate of 1.77%. (b) 77.5% of this debt will be retired within ten years.
6.2
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Overlapping Debt
2015/16 Debt Applicable to
Adjusted Taxable Est. G.O. Debt Tax Capacity in City
Taxing Unit(a) Net Tax Capacity As of 8-25-16(b) Percent Amount
Hennepin County $1,602,471,674 $721,810,000 1.1% $ 7,939,910
I.S.D. No. 281 (Robbinsdale) 93,317,239 200,350,000 19.1 38,266,850
Three Rivers Park District 1,147,830,415 52,835,000 1.6 845,360
Hennepin County Regional
Railroad Authority 1,602,471,674 34,695,000 1.1 381,645
Metropolitan Council 3,475,846,085 17,525,000(c) 0.5 87,625
Metropolitan Transit 2,767,556,165 177,190,000 0.6 1,063,140
Total $48,584,530
(a) Only those units with outstanding general obligation debt are shown here. (b) Excludes general obligation tax and aid anticipation certificates and revenue-supported debt. (c) Excludes general obligation debt supported by wastewater revenues and housing rental payments. Includes
certificates of participation.
Debt Ratios
G.O. G.O. Direct &
Direct Debt Overlapping Debt
To 2015/16 Estimated Market Value ($1,498,404,000) 1.13% 4.370%
Per Capita - (22,436- 2014 MN Demographer’s Estimate) $753 $2,919
6.2
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CITY TAX RATES, LEVIES AND COLLECTIONS
Tax Capacity Rates for a City Resident in I.S.D. No. 281 (Robbinsdale)
2015/16
For
2011/12 2012/13 2013/14 2014/15 Total Debt Only
Hennepin County 48.231% 49.461% 49.959% 46.398% 45.356% 5.425%
City of Crystal(a) 52.929 57.630 56.015 50.498 53.207 - 0 -
I.S.D. No. 281
(Robbinsdale)(b) 32.810 32.347 34.777 33.226 33.833 20.262
Special Districts(c) 9.523 10.089 10.561 9.785 9.530 2.995
Total 143.493% 149.527% 151.312% 139.907% 141.926% 28.682%
(a) In addition, the City has a 2015/16 market value tax rate of 0.01422% spread across the market value of
property in support of debt service. (b) In addition, Independent School District No. 281 (Robbinsdale) has a 2015/16 market value tax rate of
0.28216% spread across the market value of property in support of an excess operating levy. (c) Special districts include the Metropolitan Council, Metropolitan Transit District, Mosquito Control District,
Hennepin County Park Museum, Hennepin County Regional Railroad Authority, Three Rivers Parks District,
and Hennepin County Housing and Redevelopment Authority.
NOTE: This table includes only net tax capacity-based rates. Certain other tax rates are based on market value.
See Appendix III.
Tax Levies and Collections
Collected During Collected and/or Abated
Net Collection Year as of 1-1-16
Levy/Collect Levy* Amount Percent Amount Percent
2015/16 $9,592,048 (In Process of Collection)
2014/15 9,288,837 $9,216,857 99.2% $9,216,857 99.2%
2013/14 9,214,123 9,144,399 99.2 9,179,485 99.6
2012/13 9,158,455 9,090,927 99.3 9,134,495 99.7
2011/12 9,274,408 9,140,131 98.8 9,227,946 99.7
* The net levy excludes state aid for property tax relief and fiscal disparities, if applicable. The net levy is the
basis for computing tax capacity rates. See Appendix III.
6.2
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CASH AND INVESTMENTS
As of April 30, 2016
Fund Cash and Investments
General $ 4,366,998
Special Revenue 5,278,740
Debt Service:
G.O. Debt Supported by Taxes 108,944
G.O. Debt Supported by Special Assessments 4,931,094
Capital Projects 15,311,376
Internal Service 849,789
Enterprise 4,098,069
Trust and Agency 2,033,629
Total $36,978,639
City Investments
The City may invest idle funds in accordance with its investment policy and as authorized by Minnesota
Statutes Chapter 118A, as amended. These securities include:
United States treasury issues;
issues of U.S. government agencies and instrumentalities;
general obligations of state and local governments with taxing powers require “A” or
better rating by a national bond rating service;
revenue obligations of state and local governments require “AA” or better rating by a
national bond rating service;
certificates of deposits issued by U.S. banks fully insured by the federal deposit insurance
company or federal agency;
bankers’ acceptances issued by U.S. banks;
commercial paper issued by U.S. corporations or their Canadian subsidiaries with
maturities of 270 days or less with rating in the highest quality category by at least two
nationally recognized rating agencies;
money market mutual funds; and
government investment pools, including the 4M Fund, the Liquid Asset Fund, MAGIC
Fund, and MN Trust.
Management of the investment program is the responsibility of the Finance Director, as described in the
City Code. The City's investments are managed to attain an average market rate of return while
protecting capital. As of April 30, 2016, the City's investments totaled $36,978,639 and were held in the
following mix of investment types: 68.9% certificates of deposit, 19.3% municipal bonds, 9.9% money
market funds, and 1.9% obligations of government agencies.
6.2
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GENERAL INFORMATION CONCERNING THE CITY
The City is a northwestern suburb of Minneapolis and is a part of the Minneapolis/Saint Paul
metropolitan area. The City lies wholly within Hennepin County and encompasses an area of
approximately 5.8 square miles (3,712 acres).
Population
The City’s population trend is shown below.
Percent
Population Change
2014 MN Demographer’s Estimate 22,436 1.3%
2010 U.S. Census 22,151 (2.4)
2000 U.S. Census 22,698 (4.6)
1990 U.S. Census 23,788 (6.9)
1980 U.S. Census 25,543 --
Sources: Minnesota State Demographic Center, mn.gov/admin/demography and
United States Census Bureau, http://www.census.gov/.
The City’s population by age group for the past three years is as follows:
Data Year/
Report Year 0-17 18-34 35-64 65 and Over
2015/16 5,137 4,968 9,662 3,320
2014/15 5,153 4,998 9,598 3,239
2013/14 5,074 5,010 9,496 3,187
Source: Claritas, Inc. and the Nielsen Company.
Transportation
Several major Twin Cities transportation routes pass through the City. County Highway 81 (formerly
U.S. Highway 52) traverses the northern section of the City and State Highway 100 runs north-south
through the southern section. The City is home to the Crystal Airport, owned and operated by the
Metropolitan Airports Commission, which accommodates small private and charter aircraft. The
Minneapolis/Saint Paul International Airport is approximately 30 minutes from the City. Metropolitan
area bus service is provided to City residents by the Metropolitan Transit Commission and Medicine Lake
Lines.
6.2
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Major Employers
Approximate
Number
Employer Product/Service of Employees
Volunteers of America –
Crystal Care Center Skilled nursing care facility 200(b)
Target Discount store 185(a)(b)
Cub Foods Grocery store 150(b)
City of Crystal City government 111(a)
RFG Distributing Grocery distributor 98(c)
Kilmer Electric Co., Inc. Electrical contractor 73(c)
Buffalo Wild Wings Restaurant and bar 70(a)(b)
Almsted SuperValu Grocery retailer 60(a)
McDonald’s Fast-food restaurant 60
Minnesota Grinding Metal coatings, engraving 40
Perkins Restaurant 25
Standard Water Control Systems Waterproofing 20
(a) Includes full- and part-time employees. (b) As of June 2012; most recent information available. (c) As of May 2015; most recent information available
Source: This does not purport to be a comprehensive list and is based on a June 2016 best efforts telephone
survey of individual employers. Some employers do not respond to inquiries.
Labor Force Data
Annual Average April
2012 2013 2014 2015 2016
Labor Force:
City of Crystal 12,639 12,650 12,622 12,682 12,871
Hennepin County 662,562 669,800 674,658 679,549 688,785
Minneapolis-St. Paul
Bloomington MSA 1,893,165 1,909,871 1,923,003 1,983,857 1,966,192
State of Minnesota 2,958,272 2,971,523 2,982,750 3,010,366 3,041,894
Unemployment Rate:
City of Crystal 5.8% 5.1% 4.4% 3.7% 3.7%
Hennepin County 5.2 4.6 3.8 3.3 3.1
Minneapolis-St. Paul
Bloomington MSA 5.5 4.7 3.9 3.4 3.4
State of Minnesota 5.6 4.9 4.2 3.7 3.8
Source: Minnesota Department of Employment and Economic Development,
http://apps.deed.state.mn.us/lmi/laus. 2016 data are preliminary.
6.2
- 17 -
Retail Sales and Effective Buying Income (EBI)
City of Crystal
Data Year/ Total Retail Total Median
Report Year Sales ($000) EBI ($000) Household EBI
2015/16 $228,581 $553,953 $50,867
2014/15 256,123 550,820 49,143
2013/14 206,466 522,378 48,411
2012/13 242,089 489,708 45,488
2011/12 297,077 460,418 44,570
Hennepin County
Data Year/ Total Retail Total Median
Report Year Sales ($000) EBI ($000) Household EBI
2015/16 $26,004,910 $38,495,033 $55,756
2014/15 21,713,206 36,578,500 52,644
2013/14 21,457,980 34,013,568 50,131
2012/13 23,055,735 32,511,238 47,033
2011/12 22,526,015 31,323,523 48,356
The 2015/16 Median Household EBI for the State of Minnesota was $52,458. The 2015/16 Median
Household EBI for the United States was $46,738.
Source: Claritas, Inc. and the Nielsen Company.
Permits Issued by the City
New Single New Total Value*
Family Residential Commercial/Industrial (All Permits)
Year Number Value Number Value
2016 (to 4-30) 2 $ 284,350 0 0 $ 3,076,406
2015 14 2,381,631 1 $ 85,000 10,173,327
2014 9 1,188,986 4 22,943,995 34,608,705
2013 16 2,280,766 0 0 9,728,037
2012 9 1,350,369 0 0 11,057,866
2011 6 674,192 2 5,771,599 15,890,193
2010 16 2,251,322 0 0 10,404,391
* In addition to building permits, the total value includes all other permits issued by the City (i.e. heating,
lighting, plumbing, roof replacement, etc.).
Source: City of Crystal.
6.2
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Economic Development
The City is a fully developed suburb of the City of Minneapolis. As the City is a mature community, a
priority of the City Council is to maintain and increase the community’s tax base. Because the City is
fully developed, redevelopment of blighted or underutilized sites is generally necessary to increase the
community’s tax base.
The City’s Economic Development Authority (EDA) has continued its activities to maintain and improve
the community’s tax base, both commercial and residential. Specific redevelopment activities include the
following:
Single Family Residential – Scattered Site New Home Construction: The EDA is continuing its
longstanding practice of buying blighted, structurally substandard or functionally obsolete homes,
which are then demolished and the resulting vacant lots are offered for sale to builders for new
home construction. In 2015, the EDA sold seven lots for new home construction. As of April 30,
2016 the EDA has sold one lot, with additional lot sales pending.
Single Family Residential – Home Improvement Incentive Rebates: In 1998, the City and four
other communities partnered with the Greater Metropolitan Housing Corporation (GMHC) to
provide an incentive rebate for improvements to owner-occupied homes. Households with
incomes of up to 120% of the regional median income are eligible to receive the rebates. Funding
for this program initially came from the Minnesota Housing Finance Agency and the
Metropolitan Council. After these outside agencies’ funds were exhausted in 2002, the EDA
committed its own funds to keep the rebate program going within the City. For 2015, the EDA
committed $180,000 to the program. Approximately 11% of the funds are paid to GMHC for
administration of the program. During 2015, 88 homeowners took advantage of the rebate
program for improvement projects with a total value of $1,087,172.
Deferred Home Improvement Loans: Since 1982, the City has used part of its Community
Development Block Grant allocation to fund deferred home improvement loans for lower income
households. This provides interest-free loans with repayment deferred for 15 years, provided that
the recipient owns and occupies the home. During 2015, $138,520 was spent on rehab projects
and $138,924 was committed for additional projects. Two projects were completed, six new
projects were started, and fifteen properties are on the waiting list.
Cavanagh Development: The EDA purchased the Cavanagh Elementary School from
Independent School District No. 281 (Robbinsdale) in 2012, and demolition of the school was
completed in the spring of 2013. Dominium Development & Acquisition LLC purchased the site
and began building a 130-unit senior housing complex at a value of $21 million. The project was
completed in the fall 2015.
Financial Institutions*
Banking and financial services in the City are provided by branch offices of TCF National Bank,
Associated Bank, Bremer Bank, and Wells Fargo Bank, National Association.
* This does not purport to be a comprehensive list.
Source: Federal Deposit Insurance Corporation, http://www5.fdic.gov/idasp/main.asp.
6.2
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Health Care Services
The following is a summary of health care facilities located in or near the City:
Facility Location No. of Beds
Crystal Care Center City of Crystal 130 Nursing Home Beds
North Memorial Medical Center City of Robbinsdale 518 Hospital Beds
42 Infant Bassinets
Source: Minnesota Department of Health, http://www.health.state.mn.us/.
Education
Public Education
The following district serves the residents of the City:
2015/16
District Location Grades Enrollment
I.S.D. No. 281 (Robbinsdale) City of Robbinsdale K-12 12,714
Source: Minnesota Department of Education, www.education.state.mn.us
Non-Public Education
City residents are also served by the following private schools, located in the City:
2015/16
School Grades Enrollment
St. Raphael Catholic School K-8 166
River Tree School K-12 98
Source: Minnesota Department of Education, www.education.state.mn.us
Post-Secondary Education
City residents have access to various colleges and universities located throughout the Minneapolis/St.
Paul metropolitan area.
6.2
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GOVERNMENTAL ORGANIZATION AND SERVICES
Organization
The City has been a municipal corporation since 1887, a city since 1960, and operates as a Home Rule
City, governed by a Home Rule Charter with a City Manager form of government. The City's governing
body is the City Council, comprised of the Mayor and six Council Members. The Mayor and Council
Members serve overlapping four-year terms of office.
The following individuals comprise the current City Council:
Expiration of Term
Jim Adams Mayor December 31, 2016
Elizabeth Dahl Council Member December 31, 2018
Julie Deshler Council Member December 31, 2016
Jeff Kolb Council Member December 31, 2018
Laura Libby Council Member December 31, 2016
Olga Parsons Council Member December 31, 2018
Casey Peak Council Member December 31, 2016
Ms. Anne Norris is the City Manager and is responsible for the daily operations of the City and for
implementing Council decisions. Prior to being appointed City Manager in January 2000, Ms. Norris was
the Community Development Director for the City for nine years. Ms. Christina Serres is the City Clerk
and Mr. Charles Hansen serves as the City’s Finance Director/Treasurer.
The City employs a total of 111 full-time and part-time employees, and approximately 50 seasonal
employees.
Services
Law Enforcement services are provided by the City through 31 sworn police officers. The West Metro
Fire and Rescue District agreement between the cities of Crystal and New Hope provides for fire
protection through 63 paid on-call firefighters servicing three fire stations; one full-time chief; three
full-time assistant chiefs; one full-time fire inspector and one administrative captain. The City has a class
ISO 3 insurance rating.
The City is part of the Golden Valley–Crystal–New Hope Joint Water Commission (the “Commission”),
which purchases water for these communities from the City of Minneapolis. The Commission, in turn,
bills its underlying entities based on actual usage. The Commission has jurisdiction over the trunk lines
within the three cities, and each city is responsible for the construction and maintenance of its own laterals.
The system's pumping capacity in the City is estimated to be 12,000 gallons per minute, average water
demand in the City is approximately 1.5 million gallons per day, and peak demand is approximately
6.3 million gallons per day. Approximately 65% of the Commission's storage capacity is contained in two
underground reservoirs holding 19 million gallons in the City.
Interceptor sewer lines and wastewater treatment plants in the seven-county metropolitan area are under
the jurisdiction of Metropolitan Council Environmental Services (“MCES”). MCES finances its
operations through user charges based on volume. The City is responsible for the construction and
maintenance of sewer laterals.
6.2
- 21 -
Non-municipal utilities serving the City include Xcel Energy for electricity and CenterPoint Energy for
natural gas.
Labor Contracts
The status of labor contracts in the City is as follows:
Expiration Date
Bargaining Unit No. of Employees of Current Contract
Local #44 Police Officers 23 December 31, 2016
Local #56 Police Supervisors 6 December 31, 2016
Local #49 Public Works 21 December 31, 2016
Subtotal 50
Non-unionized employees 61
Total employees 111
Employee Pensions
All full-time employees and certain part-time employees of the City are covered by defined benefit
pension 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. GERF members
belong to either the Coordinated Plan or the Basic Plan. Coordinated members are covered by Social
Security and Basic members are not. All new members must participate in the Coordinated Plan. 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. All police officers, fire fighters
and peace officers who qualify for membership by statute are covered by PEPFF. The City’s
contributions to GERF and PEPFF are equal to the contractually required contributions for each year as
set by State Statute, and are as follows for the past five years:
GERF PEPFF
2015 $315,859 $367,112
2014 297,490 333,446
2013 288,445 331,004
2012 280,757 333,909
2011 276,233 327,229
PEDCP
Five Council members of the City are covered by the Public Employees Defined Contribution Plan
(PEDCP), a multiple-employer deferred compensation plan administered by PERA. The PEDCP is a
tax-qualified plan under Section 401(a) of the Internal Revenue Code and all contributions by or on behalf
of employees are tax deferred until the time of withdrawal. Plan benefits depend solely on the amounts
contributed to the plan plus investment earnings less administrative expenses. An eligible elected official
who chooses to participate in the plan contributes 5% of their salary, which is matched by the elected
official’s employer. PERA receives 2% of employer contributions and 0.025% of the assets in each
member’s account annually for administering the plan.
6.2
- 22 -
The City’s contributions to PEDCP for the past five years are as follows:
PEDCP
2015 $2,165
2014 2,982
2013 2,952
2012 1,553
2011 1,586
For more information regarding the liability of the City with respect to its employees, please reference
“Note 11 – Defined Benefit Pension Plans ” and “Note 12 – Defined Contribution Plan ” of the City’s
Comprehensive Annual Financial Report for fiscal year ended December 31, 2015, an excerpt of which is
included as Appendix IV of this Official Statement.
Sources: City’s Comprehensive Annual Financial Reports.
GASB 68
In June 2012, the Government Accounting Standards Board (GASB) issued Statement No. 68,
Accounting and Financial Reporting for Pensions (GASB 68) and related GASB Statement No. 71,
Pension Transition for Contributions Made Subsequent to the Measurement Date-an amendment to
GASB 68, effective for the City’s fiscal year ended December 31, 2015. These statements revise existing
standards for measuring and reporting pension liabilities for pension plans provided to City employees
and require recognition of a liability equal to the City’s proportionate share of net pension liability, which
is measured as the total pension liability less the amount of the pension plan's fiduciary net position. The
pronouncements require the restatement of the City’s December 31, 2014 net position of its governmental
activities. Please reference “Note 20 – Change in Accounting Principle” of the City’s Financial
Statements for fiscal year ended December 31, 2015, an excerpt of which is included as Appendix IV of
this Official Statement.
For the fiscal year ended December 31, 2015 the City’s proportionate shares of the GERF and PEPFF
pension costs as of the measurement date of June 30, 2015 were 0.0694% and 0.0240%, respectively; and
the City’s net pension liability for GERF and PEPFF were $3,596,668 and $2,726,962, respectively.
For more information regarding GASB 68 with respect to the City, please reference “Note 11 – Defined
Benefit Pension Plans” of the City’s Financial Statements for fiscal year ended December 31, 2015, an
excerpt of which is included as Appendix IV of this Official Statement.
Additional and detailed information about GERF’s net position is available in a separately-issued PERA
financial report, which may be obtained at www.mnpera.org; by writing to PERA at 60 Empire Drive
#200, St. Paul, Minnesota, 55103-2088; or by calling 1-800-652-9026.
Sources: City’s Annual Financial Statements.
Other Post-Employment Benefits
The Governmental Accounting Standards Board (GASB) has issued Statement No. 45, Accounting and
Financial Reporting by Employers for Post-employment Benefits Other Than Pensions (GASB 45), which
addresses how state and local governments must account for and report their obligations related to post-
employment healthcare and other non-pension benefits (referred to as Other Post Employment Benefits or
“OPEB”).
6.2
- 23 -
The City provides a single-employer defined benefit healthcare plan, including medical coverage, to
eligible retirees and their spouses. It is the City’s policy to periodically review its medical coverage and
to obtain requests for proposals in order to provide to most favorable benefits and premiums for
employees and retirees. Retirees and their spouses contribute to the healthcare plan at the same rate as
City employees, which results in retirees receiving an implicit rate subsidy. The implicit rate subsidy is
the additional cost of health insurance to current employees and the City as a result of the higher cost of
providing health insurance to retirees.
As of January 1, 2015, the City has 10 participants receiving health benefits from the City’s plan. The
City currently finances the plan on a pay-as-you-go basis and, for the fiscal year ended December 31,
2015, the City expended $39,403 for these benefits.
With the advent of GASB Statement 45, the City has engaged actuaries to provide actuarial valuation
reports. Under GASB 45 such costs must be accounted for on an accrual basis. The City must report an
annual OPEB cost based on actuarially determined amounts that, if paid on an ongoing basis, will provide
sufficient resources to pay these benefits.
Components of the City’s annual OPEB cost, the amount actually contributed to the plan, and the changes
in the City’s net OPEB obligation to the plan for the fiscal year ended December 31 are as follows:
Annual required contribution $121,274
Interest on net OPEB obligation 20,059
Adjustment to annual required contribution (16,828)
Annual OPEB cost (expense) $124,505
Contributions made (39,403)
Increase in net OPEB obligation $ 85,102
Net OPEB obligation – beginning of year 445,749
Net OPEB obligation (asset) – end of year $530,851
Funded status of the City’s OPEB as reported in the actuarial reports received to-date:
Unfunded UAAL as
Actuarial Actuarial a percentage
Actuarial Actuarial Value Accrued Accrued of Annual
Valuation Date of Assets Liability Liability (UAAL) Covered Payroll
January 1, 2015* - 0 - $1,166,824 $1,166,824 19%
January 1, 2014 - 0 - 1,071,271 1,071,271 18%
January 1, 2013* - 0 - 1,224,995 1,224,995 20
January 1, 2012 - 0 - 1,164,949 1,164,949 20
January 1, 2011* - 0 - 1,373,699 1,373,699 23
* Actuarial valuations are performed every two years, in even-numbered years. The liabilities and annual costs
are based on the same population as the previous year’s liabilities and annual costs.
6.2
- 24 -
Required contributions as reported in the actuarial reports received the past five years:
Fiscal OPEB Employer % of Annual OPEB OPEB
Year Ended Cost Contributions Cost Contributed Obligation
December 31, 2015 $124,505 $39,403 32% $530,851
December 31, 2014 120,248 30,908 26 445,749
December 31, 2013 131,137 74,732 57 356,409
December 31, 2012 128,474 74,316 58 300,004
December 31, 2011 133,133 92,143 69 245,846
For more information regarding the liability of the City with respect to its employees, please reference
“Note 13 – Post Employment Health Benefits Plan” of the City’s Comprehensive Annual Financial
Report for fiscal year ended December 31, 2015, an excerpt of which is included as Appendix IV of this
Official Statement.
Sources: City’s Comprehensive Annual Financial Reports.
General Fund Budget Summary
2015 Budget 2015 Actual 2016 Budget
Revenues:
Property Taxes $ 8,323,785 $ 8,262,652 $8,027,940
Special Assessments 126,000 109,981 109,200
Licenses, Permits, and Inspections 844,420 808,695 842,680
Intergovernmental 1,968,309 1,991,430 1,965,609
Charges for Services 728,225 672,594 757,162
Fines and Forfeitures 361,500 309,358 351,400
Investment Earnings 60,000 48,167 60,000
Miscellaneous 21,250 33,854 19,600
Total Revenues $12,433,489 $12,236,731 $12,133,591
Expenditures:
General Government $ 2,279,119 $ 2,284,547 $ 2,344,979
Public Safety 5,741,528 5,744,126 5,816,578
Public Works 1,246,060 1,251,095 2,368,989
Parks and Recreation 2,224,260 2,221,638 1,404,942
Community Development 741,141 736,813 541,389
Total Expenditures $12,232,108 $12,238,219 $12,476,877
Excess (Deficiency) of Revenues
Over (Under) Expenditures $ 201,381 $ (1,488 ) $ (343,286 )
Other Financing Sources (Uses):
Transfers In $ 318,613 $ 318,613 $ 343,286
Transfers Out (519,994 ) (519,994 ) 0
Total Other Financing Sources (Uses) $ (201,381 ) $ (201,381 ) $ 343,286
Net Change in Fund Balance $ 0 $ (202,869 ) $ 0
Beginning Fund Balance – January 1 $ 7,395,794 $ 7,395,794 $ 7,192,925
Ending Fund Balance – December 31 $ 7,395,794 $ 7,192,925 $ 7,192,925
Sources: City’s Comprehensive Annual Financial Reports and 2016 Budget.
6.2
- 25 -
Major General Fund Revenue Sources
Revenue 2011 2012 2013 2014 2015
Property Taxes $8,284,782 $8,211,693 $8,238,974 $8,238,974 $8,262,652
Intergovernmental 1,754,976 2,019,368 1,961,163 1,961,163 1,991,430
Licenses, permits and
inspections 670,162 843,741 924,967 924,967 808,695
Charges for sales and/or
services 654,918 686,100 769,202 769,202 672,594
Fines and forfeitures 291,963 374,684 388,593 388,593 309,358
Sources: City’s Comprehensive Annual Financial Reports.
(The Balance of This Page Has Been Intentionally Left Blank)
6.2
APPENDIX I
I-1
PROPOSED FORM OF LEGAL OPINION
$__________
City of Crystal, Minnesota
General Obligation Improvement Bonds
Series 2016A
We have acted as bond counsel to the City of Crystal, Minnesota (the “Issuer”) in connection
with the issuance by the Issuer of its General Obligation Improvement Bonds, Series 2016A (the
“Bonds”), originally dated August 25, 2016, and issued in the original aggregate principal amount of
$________. In such capacity and for the purpose of rendering this opinion we have examined certified
copies of certain proceedings, certifications and other documents, and applicable laws as we have deemed
necessary. Regarding questions of fact material to this opinion, we have relied on certified proceedings
and other certifications of public officials and other documents furnished to us without undertaking to
verify the same by independent investigation. Under existing laws, regulations, rulings and decisions in
effect on the date hereof, and based on the foregoing we are of the opinion that:
1. The Bonds have been duly authorized and executed, and are valid and binding general
obligations of the Issuer, enforceable in accordance with their terms.
2. The principal of and interest on the Bonds are payable from special assessments levied or
to be levied on property specially benefited by local improvements and ad valorem taxes for the Issuer’s
share of the cost of the improvements, but if necessary for the payment thereof additional ad valorem
taxes are required by law to be levied on all taxable property of the Issuer, which taxes are not subject to
any limitation as to rate or amount.
3. Interest on the Bonds is excludable from gross income of the recipient for federal income
tax purposes and, to the same extent, is excludable from taxable net income of individuals, trusts, and
estates for Minnesota income tax purposes, and is not a preference item for purposes of the computation
of the federal alternative minimum tax, or the computation of the Minnesota alternative minimum tax
imposed on individuals, trusts and estates. However, such interest is taken into account in determining
adjusted current earnings for the purpose of computing the federal alternative minimum tax imposed on
certain corporations and is subject to Minnesota franchise taxes on corporations (including financial
institutions) measured by income. The opinion set forth in this paragraph is subject to the condition that
the Issuer comply with all requirements of the Internal Revenue Code of 1986, as amended, that must be
satisfied subsequent to the issuance of the Bonds in order that interest thereon be, or continue to be,
excludable from gross income for federal income tax purposes and from taxable net income for
Minnesota income tax purposes. The Issuer has covenanted to comply with all such requirements.
Failure to comply with certain of such requirements may cause interest on the Bonds to be included in
gross income for federal income tax purposes and taxable net income for Minnesota income tax purposes
retroactively to the date of issuance of the Bonds. We express no opinion regarding tax consequences
arising with respect to the Bonds other than as expressly set forth herein.
6.2
I-2
4. The rights of the owners of the Bonds and the enforceability of the Bonds may be limited
by bankruptcy, insolvency, reorganization, moratorium, and other similar laws affecting creditor’s rights
generally and by equitable principles, whether considered at law or in equity.
We have not been asked and have not undertaken to review the accuracy, completeness or
sufficiency of the Official Statement or other offering material relating to the Bonds, and accordingly we
express no opinion with respect thereto.
This opinion is given as of the date hereof and we assume no obligation to update, revise, or
supplement this opinion to reflect any facts or circumstances that may hereafter come to our attention or
any changes in law that may hereafter occur.
Dated August 25, 2016 at Minneapolis, Minnesota.
6.2
APPENDIX II
II-1
$____________
City of Crystal, Minnesota
General Obligation Improvement Bonds
Series 2016A
CONTINUING DISCLOSURE CERTIFICATE
August 25, 2016
This Continuing Disclosure Certificate (the “Disclosure Certificate”) is executed and delivered by the
City of Crystal, Minnesota (the “Issuer”) in connection with the issuance of its General Obligation
Improvement Bonds, Series 2016A (the “Bonds”) in the original aggregate principal amount of
$___________. The Bonds are being issued pursuant to resolutions adopted by the City Council of the Issuer
(the “Resolutions”). The Bonds are being delivered to _________________ (the “Purchaser”) on the date
hereof. Pursuant to the Resolutions, the Issuer has covenanted and agreed to provide continuing disclosure of
certain financial information and operating data and timely notices of the occurrence of certain events. The
Issuer hereby covenants and agrees as follows:
Section 1. Purpose of the Disclosure Certificate. This Disclosure Certificate is being executed
and delivered by the Issuer for the benefit of the Holders (as defined herein) of the Bonds in order to provide
for the public availability of such information and assist the Participating Underwriter(s) (as defined herein)
in complying with the Rule (as defined herein). This Disclosure Certificate, together with the Resolutions,
constitutes the written agreement or contract for the benefit of the Holders of the Bonds that is required by the
Rule.
Section 2. Definitions. In addition to the defined terms set forth in the Resolutions, which
apply to any capitalized term used in this Disclosure Certificate unless otherwise defined in this Section, the
following capitalized terms shall have the following meanings:
“Annual Report” means any annual report provided by the Issuer pursuant to, and as described in,
Sections 3 and 4 of this Disclosure Certificate.
“Audited Financial Statements” means annual financial statements of the Issuer, prepared in
accordance with generally accepted accounting principles for governmental units (“GAAP”) as prescribed by
the Governmental Accounting Standards Board (“GASB”).
“Bonds” means the General Obligation Improvement Bonds, Series 2016A, issued by the Issuer in
the original aggregate principal amount of $___________.
“Disclosure Certificate” means this Continuing Disclosure Certificate.
“EMMA” means the Electronic Municipal Market Access system operated by the MSRB and
designated as a nationally recognized municipal securities information repository and the exclusive portal for
complying with the continuing disclosure requirements of the Rule.
“Final Official Statement” means the deemed Final Official Statement, dated __________, 2016,
which constitutes the final official statement delivered in connection with the Bonds, which is available from
the MSRB.
“Fiscal Year” means the fiscal year of the Issuer.
6.2
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“Holder” means the person in whose name a Bond is registered or a beneficial owner of such a Bond.
“Issuer” means the City of Crystal, Minnesota, which is the obligated person with respect to the
Bonds.
“Material Event” means any of the events listed in Section 5(a) of this Disclosure Certificate.
“MSRB” means the Municipal Securities Rulemaking Board located at 1300 I Street NW,
Suite 1000, Washington, DC 20005.
“Participating Underwriter” means any of the original underwriter(s) of the Bonds (including the
Purchaser) required to comply with the Rule in connection with the offering of the Bonds.
“Purchaser” means __________________.
“Repository” means EMMA, or any successor thereto designated by the SEC.
“Rule” means SEC Rule 15c2-12(b)(5) promulgated by the SEC under the Securities Exchange Act
of 1934, as the same may be amended from time to time, and including written interpretations thereof by the
SEC.
“SEC” means Securities and Exchange Commission, and any successor thereto.
Section 3. Provision of Annual Financial Information and Audited Financial Statements.
(a) The Issuer shall provide to the Repository, as soon as available, but not later than twelve
(12) months after the end of the Fiscal Year commencing with the year that ends December 31, 2016, an
Annual Report which is consistent with the requirements of Section 4 of this Disclosure Certificate. The
Annual Report may be submitted as a single document or as separate documents comprising a package, and
may cross-reference other information as provided in Section 4 of this Disclosure Certificate; provided that
the Audited Financial Statements of the Issuer may be submitted separately from the balance of the Annual
Report and will be submitted as soon as available.
(b) If the Issuer is unable or fails to provide to the Repository an Annual Report by the date
required in subsection (a), the Issuer shall send a notice of that fact to the Repository and the MSRB.
(c) The Issuer shall determine each year prior to the date for providing the Annual Report the
name and address of each Repository.
Section 4. Content of Annual Reports. The Issuer’s Annual Report shall contain or incorporate
by reference the following sections of the Final Official Statement:
1. City Property Values
2. City Indebtedness
3. City Tax Rates, Levies and Collections
In addition to the items listed above, the Annual Report shall include Audited Financial Statements
submitted in accordance with Section 3 of this Disclosure Certificate.
6.2
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Any or all of the items listed above may be incorporated by reference from other documents,
including official statements of debt issues of the Issuer or related public entities, which have been submitted
to the Repository or the SEC. If the document incorporated by reference is a final official statement, it must
also be available from the MSRB. The Issuer shall clearly identify each such other document so incorporated
by reference.
Section 5. Reporting of Material Events.
(a) This Section 5 shall govern the giving of notice of the occurrence of any of the following
events (“Material Events”) with respect to the Bonds:
1. Principal and interest payment delinquencies;
2. Non-payment related defaults, if material;
3. Unscheduled draws on debt service reserves reflecting financial difficulties;
4. Unscheduled draws on credit enhancements reflecting financial difficulties;
5. Substitution of credit or liquidity providers, or their failure to perform;
6. Adverse tax opinions, the issuance by the Internal Revenue Service of proposed or final
determinations of taxability, Notices of Proposed Issue (IRS Form 5701–TEB), or other
material notices or determinations with respect to the tax status of the security, or other
material events affecting the tax status of the security;
7. Modifications to rights of security holders, if material;
8. Bond calls, if material, and tender offers;
9. Defeasances;
10. Release, substitution, or sale of property securing repayment of the securities, if material;
11. Rating changes;
12. Bankruptcy, insolvency, receivership or similar event of the obligated person;
13. The consummation of a merger, consolidation, or acquisition involving an obligated
person or the sale of all or substantially all of the assets of the obligated person, other
than in the ordinary course of business, the entry into a definitive agreement to undertake
such an action or the termination of a definitive agreement relating to any such actions,
other than pursuant to its terms, if material; and
14. Appointment of a successor or additional trustee or the change of name of a trustee, if
material.
(b) The Issuer shall file a notice of such occurrence with the Repository or with the MSRB
within ten (10) business days of the occurrence of the Material Event.
6.2
II-4
(c) Unless otherwise required by law and subject to technical and economic feasibility, the
Issuer shall employ such methods of information transmission as shall be requested or recommended by the
designated recipients of the Issuer’s information.
Section 6. EMMA. The SEC has designated EMMA as a nationally recognized municipal
securities information repository and the exclusive portal for complying with the continuing disclosure
requirements of the Rule. Until the EMMA system is amended or altered by the MSRB and the SEC, the
Issuer shall make all filings required under this Disclosure Certificate solely with EMMA.
Section 7. Termination of Reporting Obligation. The Issuer’s obligations under the
Resolutions and this Disclosure Certificate shall terminate upon the legal defeasance, the redemption in full
of all Bonds or payment in full of all Bonds.
Section 8. Agent. The Issuer may, from time to time, appoint or engage a dissemination agent
to assist it in carrying out its obligations under the Resolutions and this Disclosure Certificate, and may
discharge any such agent, with or without appointing a successor dissemination agent.
Section 9. Amendment; Waiver. Notwithstanding any other provision of the Resolutions or
this Disclosure Certificate, the Issuer may amend this Disclosure Certificate, and any provision of this
Disclosure Certificate may be waived, if such amendment or waiver is supported by an opinion of nationally
recognized bond counsel to the effect that such amendment or waiver would not, in and of itself, cause a
violation of the Rule. The provisions of the Resolutions requiring continuing disclosure pursuant to the Rule
and this Disclosure Certificate, or any provision hereof, shall be null and void in the event that the Issuer
delivers to the Repository an opinion of nationally recognized bond counsel to the effect that those portions
of the Rule which impose the continuing disclosure requirements of the Resolutions and the execution and
delivery of this Disclosure Certificate are invalid, have been repealed retroactively or otherwise do not apply
to the Bonds. The provisions of the Resolutions requiring continuing disclosure pursuant to the Rule and this
Disclosure Certificate may be amended without the consent of the Holders of the Bonds, but only upon the
delivery by the Issuer to the Repository of the proposed amendment and an opinion of nationally recognized
bond counsel to the effect that such amendment, and giving effect thereto, will not adversely affect the
compliance with the Rule.
Section 10. Additional Information. Nothing in this Disclosure Certificate shall be deemed to
prevent the Issuer from disseminating any other information, using the means of dissemination set forth in
this Disclosure Certificate or any other means of communication, or including any other information in any
Annual Report or notice of occurrence of a Material Event, in addition to that which is required by this
Disclosure Certificate. If the Issuer chooses to include any information in any Annual Report or notice of
occurrence of a Material Event in addition to that which is specifically required by this Disclosure Certificate,
the Issuer shall have no obligation under this Disclosure Certificate to update such information or include it in
any future Annual Report or notice of occurrence of a Material Event.
Section 11. Default. In the event of a failure of the Issuer to comply with any provision of this
Disclosure Certificate any Holder of the Bonds may take such actions as may be necessary and appropriate,
including seeking mandamus or specific performance by court order, to cause the Issuer to comply with its
obligations under the Resolutions and this Disclosure Certificate. A default under this Disclosure Certificate
shall not be deemed an event of default with respect to the Bonds and the sole remedy under this Disclosure
Certificate in the event of any failure of the Issuer to comply with this Disclosure Certificate shall be an
action to compel performance.
6.2
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Section 12. Beneficiaries. This Disclosure Certificate shall inure solely to the benefit of the
Issuer, the Participating Underwriters, and the Holders from time to time of the Bonds, and shall create no
rights in any other person or entity.
(The remainder of this page is intentionally left blank.)
6.2
II-6
IN WITNESS WHEREOF, we have executed this Disclosure Certificate in our official capacities
effective as of the date and year first written above.
CITY OF CRYSTAL, MINNESOTA
Mayor
City Manager
6.2
APPENDIX III
III-1
SUMMARY OF TAX LEVIES, PAYMENT PROVISIONS, AND
MINNESOTA REAL PROPERTY VALUATION
Following is a summary of certain statutory provisions relative to tax levy procedures, tax payment and
credit procedures, and the mechanics of real property valuation. The summary does not purport to be
inclusive of all such provisions or of the specific provisions discussed, and is qualified by reference to the
complete text of applicable statutes, rules and regulations of the State of Minnesota.
Property Valuations (Chapter 273, Minnesota Statutes)
Assessor's Estimated Market Value. Each parcel of real property subject to taxation must, by statute, be
appraised at least once every five years as of January 2 of the year of appraisal. With certain exceptions,
all property is valued at its market value, which is the value the assessor determines to be the price the
property to be fairly worth, and which is referred to as the “Estimated Market Value.” The 2013
Minnesota Legislature established the Estimated Market Value as the value used to calculate a
municipality’s legal debt limit.
Economic Market Value. The Economic Market Value is the value of locally assessed real property
(Assessor’s Estimated Market Value) divided by the sales ratio as provided by the State of Minnesota
Department of Revenue plus the estimated market value of personal property, utilities, railroad, and
minerals.
Taxable Market Value. The Taxable Market Value is the value that Net Tax Capacity is based on, after
all reductions, limitations, exemptions and deferrals.
Net Tax Capacity. The Net Tax Capacity is the value upon which net taxes are levied, extended and
collected. The Net Tax Capacity is computed by applying the class rate percentages specific to each type
of property classification against the Taxable Market Value. Class rate percentages vary depending on
the type of property as shown on the last page of this Appendix. The formulas and class rates for
converting Taxable Market Value to Net Tax Capacity represent a basic element of the State's property
tax relief system and are subject to annual revisions by the State Legislature. Property taxes are the sum
of the amounts determined by (i) multiplying the Net Tax Capacity by the tax capacity rate, and
(ii) multiplying the referendum market value by the market value rate.
Market Value Homestead Exclusion. In 2011, the Market Value Homestead Exclusion Program (MVHE)
was implemented to offset the elimination of the Market Value Homestead Credit Program that provided
relief to certain homesteads. The MVHE reduces the taxable market value of a homestead with an
Assessor’s Estimated Market Value up to $413,800 in an attempt to result in a property tax similar to the
effective property tax prior to the elimination of the homestead credit. The MVHE applies to property
classified as Class 1a or 1b and Class 2a, and causes a decrease in the Issuer’s aggregate Taxable Market
Value, even if the Assessor’s Estimated Market Value on the same properties did not decline.
Property Tax Payments and Delinquencies
(Chapters 275, 276, 277, 279-282 and 549, Minnesota Statutes)
Ad valorem property taxes levied by local governments in Minnesota are extended and collected by the
various counties within the State. Each taxing jurisdiction is required to certify the annual tax levy to the
county auditor within five (5) working days after December 20 of the year preceding the collection year.
A listing of property taxes due is prepared by the county auditor and turned over to the county treasurer
on or before the first business day in March.
6.2
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The county treasurer is responsible for collecting all property taxes within the county. Real estate and
personal property tax statements are mailed out by March 31. One-half (1/2) of the taxes on real property
is due on or before May 15. The remainder is due on or before October 15. Real property taxes not paid
by their due date are assessed a penalty on homestead property of 2% until May 31 and increased to 4%
on June 1. The penalty on nonhomestead property is assessed at a rate of 4% until May 31 and increased
to 8% on June 1. Thereafter, an additional 1% penalty shall accrue each month through October 1 of the
collection year for unpaid real property taxes. In the case of the second installment of real property taxes
due October 15, a penalty of 2% on homestead property and 4% on nonhomestead property is assessed.
The penalty for homestead property increases to 6% on November 1 and again to 8% on December 1.
The penalty for nonhomestead property increases to 8% on November 1 and again to 12% on
December 1. Personal property taxes remaining unpaid on May 16 are deemed to be delinquent and a
penalty of 8% attaches to the unpaid tax. However, personal property that is owned by a tax-exempt
entity, but is treated as taxable by virtue of a lease agreement, is subject to the same delinquent property
tax penalties as real property.
On the first business day of January of the year following collection all delinquencies are subject to an
additional 2% penalty, and those delinquencies outstanding as of February 15 are filed for a tax lien
judgment with the district court. By March 20 the county auditor files a publication of legal action and a
mailing of notice of action to delinquent parties. Those property interests not responding to this notice
have judgment entered for the amount of the delinquency and associated penalties. The amount of the
judgment is subject to a variable interest determined annually by the Department of Revenue, and equal to
the adjusted prime rate charged by banks but in no event is the rate less than 10% or more than 14%.
Property owners subject to a tax lien judgment generally have three years (3) to redeem the property.
After expiration of the redemption period, unredeemed properties are declared tax forfeit with title held in
trust by the State of Minnesota for the respective taxing districts. The county auditor, or equivalent
thereof, then sells those properties not claimed for a public purpose at auction. The net proceeds of the
sale are first dedicated to the satisfaction of outstanding special assessments on the parcel, with any
remaining balance in most cases being divided on the following basis: county - 40%; town or city - 20%;
and school district - 40%.
Property Tax Credits (Chapter 273, Minnesota Statutes)
In addition to adjusting the taxable value for various property types, primary elements of Minnesota's
property tax relief system are: property tax levy reduction aids; the homestead credit refund and the
renter’s property tax refund, which relate property taxes to income and provide relief on a sliding income
scale; and targeted tax relief, which is aimed primarily at easing the effect of significant tax increases.
The homestead credit refund, the renter’s property tax refund, and targeted credits are reimbursed to the
taxpayer upon application by the taxpayer. Property tax levy reduction aid includes educational aids,
local governmental aid, equalization aid, county program aid and disparity reduction aid.
Debt Limitations
All Minnesota municipalities (counties, cities, towns and school districts) are subject to statutory “net
debt” limitations under the provisions of Minnesota Statutes, Section 475.53. Net debt is defined as the
amount remaining after deducting from gross debt the amount of current revenues that are applicable
within the current fiscal year to the payment of any debt and the aggregate of the principal of the
following:
1. Obligations issued for improvements that are payable wholly or partially from the proceeds of
special assessments levied upon benefited property.
2. Warrants or orders having no definite or fixed maturity.
3. Obligations payable wholly from the income from revenue producing conveniences.
6.2
III-3
4. Obligations issued to create or maintain a permanent improvement revolving fund.
5. Obligations issued for the acquisition and betterment of public waterworks systems, and public
lighting, heating or power systems, and any combination thereof, or for any other public
convenience from which revenue is or may be derived.
6. Certain debt service loans and capital loans made to school districts.
7. Certain obligations to repay loans.
8. Obligations specifically excluded under the provisions of law authorizing their issuance.
9. Certain obligations to pay pension fund liabilities.
10. Debt service funds for the payment of principal and interest on obligations other than those
described above.
11. Obligations issued to pay judgments against the municipality.
Levies for General Obligation Debt
(Sections 475.61 and 475.74, Minnesota Statutes)
Any municipality that issues general obligation debt must, at the time of issuance, certify levies to the
county auditor of the county(ies) within which the municipality is situated. Such levies shall be in an
amount that if collected in full will, together with estimates of other revenues pledged for payment of the
obligations, produce at least five percent in excess of the amount needed to pay principal and interest
when due. Notwithstanding any other limitations upon the ability of a taxing unit to levy taxes, its ability
to levy taxes for a deficiency in prior levies for payment of general obligation indebtedness is without
limitation as to rate or amount.
Metropolitan Revenue Distribution (Chapter 473F, Minnesota Statutes)
“Fiscal Disparities Law”
The Charles R. Weaver Metropolitan Revenue Distribution Act, more commonly known as “Fiscal
Disparities,” was first implemented for taxes payable in 1975. Forty percent of the increase in
commercial-industrial (including public utility and railroad) net tax capacity valuation since 1971 in each
assessment district in the Minneapolis/St. Paul seven-county metropolitan area (Anoka, Carver, Dakota,
excluding the City of Northfield, Hennepin, Ramsey, Scott, excluding the City of New Prague, and
Washington Counties) is contributed to an area-wide tax base. A distribution index, based on the factors
of population and real property market value per capita, is employed in determining what proportion of
the net tax capacity value in the area-wide tax base shall be distributed back to each assessment district.
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STATUTORY FORMULAE: CONVERSION OF TAXABLE MARKET VALUE (TMV) TO
NET TAX CAPACITY FOR MAJOR PROPERTY CLASSIFICATIONS
Local Tax
Payable
Local Tax
Payable
Local Tax
Payable
Property Type 2012-2014 2015 2016
Residential Homestead (1a)
Up to $500,000 1.00% 1.00% 1.00%
Over $500,000 1.25% 1.25% 1.25%
Residential Non-homestead
Single Unit (4bb1)
Up to $500,000 1.00% 1.00% 1.00%
Over $500,000 1.25% 1.25% 1.25%
1-3 unit and undeveloped land (4b1) 1.25% 1.25% 1.25%
Market Rate Apartments
Regular (4a) 1.25% 1.25% 1.25%
Low-Income (4d) 0.75%
Up to $100,000 0.75%
Over $100,000 0.25%
Up to $106,000 0.75%
Over $106,000 0.25%
Commercial/Industrial/Public Utility (3a)
Up to $150,000 1.50%(a) 1.50%(a) 1.50%(a)
Over $150,000 2.00%(a) 2.00%(a) 2.00%(a)
Electric Generation Machinery 2.00% 2.00% 2.00%
Commercial Seasonal Residential
Homestead Resorts (1c)
Up to $600,000 0.55% 0.50% 0.50%
$600,000 - $2,300,000 1.00% 1.00% 1.00%
Over $2,300,000 1.25%(a) 1.25%(a) 1.25%(a)
Seasonal Resorts (4c)
Up to $500,000 1.00%(a) 1.00%(a) 1.00%(a)
Over $500,000 1.25%(a) 1.25%(a) 1.25%(a)
Non-Commercial (4c12)
Up to $500,000 1.00%(a)(b) 1.00%(a)(b) 1.00%(a)(b)
Over $500,000 1.25%(a)(b) 1.25%(a)(b) 1.25%(a)(b)
Disabled Homestead (1b)
Up to $50,000 0.45% 0.45% 0.45%
Agricultural Land & Buildings
Homestead (2a)
Up to $500,000 1.00% 1.00% 1.00%
Over $500,000 1.25% 1.25% 1.25%
Remainder of Farm
Up to $2,140,000(c) 0.50%(b) 0.50%(b) 0.50%(b)
Over $2,140,000(c) 1.00%(b) 1.00%(b) 1.00%(b)
Non-homestead (2b) 1.00%(b) 1.00%(b) 1.00%(b) (a) State tax is applicable to these classifications.
(b) Exempt from referendum market value based taxes.
(c) Legislative increases, payable 2016. Historical valuations are: Payable 2015 - $1,900,000; Payable 2014 - $1,500,000;
Payable 2013 - $1,290,000; and Payable 2012 - $1,210,000.
NOTE: For purposes of the State general property tax only, the net tax capacity of non-commercial class 4c(1) seasonal
residential recreational property has the following class rate structure: First $76,000 – 0.40%; $76,000 to $500,000 –
1.00%; and over $500,000 – 1.25%. In addition to the State tax base exemptions referenced by property classification,
airport property exempt from city and school district property taxes under M.S. 473.625 is exempt from the State
general property tax (MSP International Airport and Holman Field in St. Paul are exempt under this provision).
6.2
APPENDIX IV
IV -1
EXCERPT OF 2015 COMPREHENSIVE ANNUAL FINANCIAL REPORT
Data on the following pages was extracted from the City’s Comprehensive Annual Financial Report for
fiscal year ended December 31, 2015. The reader should be aware that the complete financial statements
may contain additional information which may interpret, explain or modify the data presented here.
The City’s comprehensive annual financial reports for the years ending 1996 through 2014 were awarded
the Certificate of Achievement for Excellence in Financial Reporting by the Government Finance
Officers Association of the United States and Canada (GFOA). The Certificate of Achievement is the
highest form of recognition for excellence in state and local government financial reporting. The City has
submitted its CAFR for the 2015 fiscal year to GFOA.
In order to be awarded a Certificate of Achievement, a government unit must publish an easily readable
and efficiently organized comprehensive annual financial report (CAFR), whose contents conform to
program standards. Such CAFR must satisfy both generally accepted accounting principles and
applicable legal requirements. A Certificate of Achievement is valid for a period of one year only.
6.2
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PROPOSAL SALE DATE: July 19, 2016
________________________________ Phone: 651-223-3000
* Preliminary; subject to change. Fax: 651-223-3046
Email: bond_services@springsted.com
Website: www.springsted.com
City of Crystal, Minnesota
$3,330,000* General Obligation Improvement Bonds, Series 2016A
For the Bonds of this Issue which shall mature and bear interest at the respective annual rates, as follow, we offer a price of
$_________________ (which may not be less than $3,296,700) plus accrued interest, if any, to the date of delivery.
Year
Interest
Rate (%)
Yield (%)
Dollar
Price
Year
Interest
Rate (%)
Yield (%)
Dollar
Price
2018 % % % 2026 % % %
2019 % % % 2027 % % %
2020 % % % 2028 % % %
2021 % % % 2029 % % %
2022 % % % 2030 % % %
2023 % % % 2031 % % %
2024 % % % 2032 % % %
2025 % % %
Designation of Term Maturities
Years of Term Maturities
In making this offer on the sale date of July 19, 2016 we accept all of the terms and conditions of the Terms of Proposal published in the
Preliminary Official Statement dated June 28, 2016 including the City’s right to modify the principal amount of the Bonds. (See “Terms
of Proposal” herein.) In the event of failure to deliver these Bonds in accordance with said Terms of Proposal, we reserve the right to
withdraw our offer, whereupon the deposit accompanying it will be immediately returned. All blank spaces of this offer are intentional
and are not to be construed as an omission.
Not as a part of our offer, the above quoted prices being controlling, but only as an aid for the verification of the offer, we have made the
following computations:
NET INTEREST COST: $____________________________
TRUE INTEREST RATE: ______________ %
The Bidder will not will purchase municipal bond insurance from .
Account Members
______________________________
Account Manager
By: ___________________________
Phone: ________________________
...........................................................................................................................................................................................................................
The foregoing proposal has been accepted by the City.
Attest: _______________________________ Date: ________________________________
...........................................................................................................................................................................................................................
6.2
_____________________________________________________________________
FROM: Dan Olson, City Planner
DATE: July 15, 2016
TO: Anne Norris, City Manager (for July 19 meeting)
SUBJECT: Consider approving variances for two single-family homes at 3226
and 3232 Georgia Avenue North
A. BACKGROUND
SVK Development, owner of the properties at 3226 and 3232 Georgia Avenue North, is
requesting variances to reduce the front setback from 30 feet to 15 feet as measured
from each home’s foundation to the cul-de-sac easement line. Both properties involved
in this application are zoned Low Density Residential (R-1).
Attachments:
A. Site location map
B. Map showing public hearing notification area
C. Existing zoning map
D. Project narrative
E. Proposed site plan
B. VARIANCES
The applicant is requesting variances to the front setback for the proposed homes to be
constructed at 3226 and 3232 Georgia Avenue North. Both lots are located in the
Gardendale Subdivision which was approved by the City Council in April 2016. The
applicant is proposing to reduce the front setback from 30 feet to 15 feet as measured
from the home’s foundation to the cul-de-sac easement line (see Attachment E). This
would result in both homes being 25 feet from the cul-de-sac curb. The applicant’s
reason for requesting the variances is for the homes at 3226 and 3232 Georgia to have
a front setback that is reasonably similar to other future homes on Georgia south of the
cul-de-sac. Also, although the site plan shows an increased rear setback from 30 feet to
40 feet, the required minimum setback would still be 30 feet.
Notice of the July 11 public hearing was published in the Sun Post on June 30 and
mailed to owners within 350 feet (see Attachment B). No one from the public spoke at
the Planning Commission public hearing about this request. Prior to the Planning
COUNCIL STAFF REPORT
Variances for 3226 and 3232
Georgia Avenue North
6.3
Commission meeting, staff had received one verbal comment on the variances from a
resident who voiced opposition, believing that the City’s regulations should be adhered to.
The following are the relevant approval criteria for these variances as outlined in
Section 515.05 of the City’s Zoning Code, followed by staff response:
a) Variances shall only be permitted when they are in harmony with the
general purposes and intent of the official control and when the terms of
the variances are consistent with the comprehensive plan.
Response: The intent of the City’s Zoning Code is to provide for
regulations to promote orderly development that allows for adequate
access to light, air, and convenient access to property. Moving the
proposed homes at 3226 and 3232 Georgia closer to the public street
is not in conflict with those goals, provided that there is at least 20
feet of driveway from the garage doors to the cul-de-sac easement
line. This is necessary to reduce the potential for vehicles parked in
the driveways to extend into the street. If the variances are
approved, the homes will continue to be in conformance with the
Comprehensive Plan’s Low Density Residential future land use
designation.
b) Variances shall only be permitted when the city council finds that strict
enforcement of specific provisions of this section would create practical
difficulties due to circumstances unique to a particular property under
consideration. Practical difficulties, as used in connection with the
granting of a variance, means that the property owner:
1) proposes to use the property in a reasonable manner not
permitted by an official control; and
2) the plight of the landowner is due to circumstances unique to
the property not created by the landowner; and
3) the variance, if granted, will not alter the essential character
of the locality.
Response: The use of these two lots for single-family homes is a
reasonable use permitted by the City’s zoning code. Without the
variances the proposed homes would not be located in a similar
location as other future homes on Georgia Avenue North. This is
due to the presence of the cul-de-sac which was required by the
City since the parcels north of the Gardendale Subdivision are not
proposed for development at this time. This is a unique situation
not created by the applicant. Since the proposed homes are only
being moved to be closer to the street, the essential character of
this area is not proposed to change provided that there is at least 20
6.3
feet of driveway from the garage doors to the cul-de-sac easement
line. This is necessary to reduce the potential for vehicles parked in
the driveways to extend into the street.
c) Economic considerations alone do not constitute practical difficulties.
Response: The applicant has indicated that their reason for
requesting the variances is to construct homes that have a similar
front setback to other future homes on Georgia Avenue North.
Therefore economic considerations alone are not the sole reason
for requesting these variances.
C. REQUESTED ACTION
At the July 11, 2016 Planning Commission meeting, the Commission
recommended approval to the City Council of the variances for 3226 and 3232
Georgia Avenue North by a vote of nine to zero with the following condition of
approval:
1. There shall be a minimum 20 foot long driveway from the garage doors
to the cul-de-sac easement line for both properties.
City Council motion to approve the variances is requested.
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Attachment D
Front Yard Variance Request Narrative
3232 & 3226 Georgia Ave. N.
SVK Development is requesting a variance approval of the front yard setback for lots
1 (3232) and 2 (3226) Block 2 of the Gardendale development to 15’ from the
temporary cul-de-sac easement line to the foundation of the new home. The two
lots are currently impacted by the temporary cul-de-sac and force the home pad 40’-
50’ from the back of curb of Georgia Ave. N.
To be consistent with the alignment and look of other homes on Georgia Avenue
North, SVK Development is requesting this variance to allow these homes to align
with the front yards of other homes on the street and will move the rear of the home
from the rear property line providing additional privacy for these lots and
neighboring properties.
6.3
6.3
PAGE 1 OF 2
_____________________________________________________________________
FROM: Dan Olson, City Planner
DATE: July 15, 2016
TO: Anne Norris, City Manager (for July 19 meeting)
SUBJECT: Consider initiating a zoning ordinance text amendment revising the
Floodplain Overlay District
A. BACKGROUND
At the July 12, 2016 Council Work Session the Council heard a presentation on the
proposed text amendments to the City’s floodplain ordinance and maps. Now, the
Council is being asked to direct the Planning Commission to hold a public hearing on
these proposed text amendments.
The city‘s floodplain ordinance and maps were last updated in 2004. In May 2016 the
Federal Emergency Management Agency (FEMA) sent a letter to all cities in Hennepin
County stating that they have updated the floodplain maps within the county and are
now requiring cities to update their local ordinance and map by November 4, 2016.
Communities that fail to adopt an update by November 4 will lose their ability to
participate in the National Flood Insurance Program (NFIP) which allows residents to
purchase flood insurance.
FEMA has delegated responsibility to the Minnesota Department of Natural Resources
(DNR) to prepare an updated model ordinance and work with the cities to adopt their
respective local update. The new ordinance would not be dramatically different from
the city’s existing ordinance, with most of the changes relating to definitions of terms.
The city may not significantly deviate from or customize the model ordinance but city
staff is working with the DNR to tailor this ordinance to Crystal as much as possible.
More significant are the changes to the FEMA floodplain map which would result in 261
Crystal parcels being impacted by the floodplain in whole or in part. This is 73 fewer
than the 334 parcels shown in the current map. The net reduction of 73 parcels is due
to the following:
77 parcels will no longer be impacted by the floodplain. Staff will inform the affected
property owners of this change after the update is adopted. All but one of these
parcels are located in the central area of the city shown on the attached maps.
COUNCIL STAFF REPORT
Revisions to Floodplain Ordinance and Map
6.4
PAGE 2 OF 2
4 parcels not previously impacted would now be partially within the floodplain:
- 6920 42nd Avenue North (existing townhome)
- 6900 42nd Avenue North (existing townhome)
- 6700 41st Avenue North (existing single family home)
- 3932 Douglas Drive North (vacant single family lot)
All four of these parcels are located in the central area of the city shown on the
attached maps. Staff will complete a detailed elevation review to determine if any of
these parcels’ buildings or building sites would be within the floodplain, then directly
contact the owners before the Planning Commission holds the public hearing to
consider the proposed ordinance and map.
The proposed schedule for adopting a new ordinance is as follows:
Aug. 8 Planning Commission holds public hearing
Aug. 16 Council considers first reading of ordinance and map
Sep. 6 Council considers second reading and adoption
Sep. 15 Summary of ordinance published
Oct. 15 Effective date of ordinance and map
B. REQUESTED ACTION
Direct the Planning Commission to hold a public hearing initiating a zoning ordinance
text amendment to revise the Floodplain Overlay District.
Attachments:
A. Proposed FEMA floodplain map (central area of city)
B. Detailed map showing existing and proposed floodplain (entire city)
C. Detailed map showing existing and proposed floodplain (central area of city)
6.4
Attachment A
Proposed FEMA Floodplain Map – Central Area of Crystal
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Attachment C 6.4
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Posted: July 15, 2016
CRYSTAL CITY COUNCIL
SECOND WORK SESSION AGENDA
Tuesday, July 19, 2016
Immediately following the regular City Council meeting
Conference Room A
Pursuant to due call and notice given in the manner prescribed by Section 3.01 of the City
Charter, the second work session of the Crystal City Council was held at ______ p.m. on
Tuesday, July 19, 2016 in Conference Room A located at 4141 Douglas Drive, Crystal,
Minnesota.
I. Attendance
Council members Staff
____ Peak ____ Norris
____ Adams ____ Therres
____ Dahl ____ Revering
____ Deshler ____ Ray
____ Kolb ____ Sutter
____ Libby ____ Gilchrist
____ Parsons ____ Serres
II. Agenda
The purpose of the work session is to discuss the following agenda items:
1. Bassett Creek regional park and trail update*
2. Community Outreach Task Force update
3. CPRR Quiet Zone – revised layouts for West Broadway and Douglas Drive crossings
4. Blue Line update*
5. Council goals and city manager monthly check in
6. Constituent issues update
7. New business*
8. Announcements*
* Denotes no supporting information included in the packet.
III. Adjournment
The work session adjourned at ______ p.m.
Auxiliary aids are available upon request to individuals with disabilities by calling the City Clerk at (763)
531-1145 at least 96 hours in advance. TTY users may call Minnesota Relay at 711 or 1-800-627-3529.
4141 Douglas Drive North • Crystal, Minnesota 55422-1696
Tel: (763) 531-1000 • Fax: (763) 531-1188 • www.crystalmn.gov
4141 Douglas Drive North • Crystal, Minnesota 55422-1696
Tel: (763) 531-1000 • Fax: (763) 531-1188 • www.crystalmn.gov
Issue Type Key Summary Assignee Reporter Status Created Updated
Issue CRCI-52 39XX Kentucky Anne Norris Anne Norris New Issue 7/1/2016 15:22 7/14/2016 11:02
Issue CRCI-48 Noise from basketball courts at North
Lions Park
Olga Parsons Anne Norris New Issue 3/25/2016 12:51 6/30/2016 16:39
Open Issues (JIRA)
Displaying 2 issues at 07/14/16 11:03 AM.
Generated at Thu Jul 14 11:03:56 CDT 2016 by Anne Norris using JIRA 1000.148.3#100005-sha1:53b5f3f5ad96b85acf2b5188ebea052651957ac6.
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CITY OF CRYSTAL
ORDINANCE NO. 2016 - _____
AN ORDINANCE OPTING-OUT OF THE REQUIREMENTS OF
MINNESOTA STATUTES, SECTION 462.3593 PERTAINING TO
TEMPORARY FAMILY HEALTH CARE DWELLINGS
The City of Crystal ordains:
ARTICLE I. Legislative Findings
1.01 On May 12, 2016, Governor Dayton signed into law the creation and regulation of
temporary family health care dwellings, codified at Minnesota Statutes, section
462.3593, which permits and regulates temporary family health care dwellings
effective September 1, 2016;
1.02 Subdivision 9 of Minnesota Statutes, section 462.3593 allows cities to opt-out of
those regulations;
1.03 The City Council of the City of Crystal has determined that the provisions of
Minnesota Statutes, section 462.3593 are well-intentioned, but not entirely
appropriate for the City of Crystal;
1.04 The City Council desires to study alternative approaches to temporary family
health care dwellings with a goal of developing regulations that are appropriate
for the City of Crystal;
1.05 The City Council is unable to adequately study temporary family health care
dwellings by September 1, 2016; and
1.06 The Council finds it necessary to opt-out in accordance with subdivision 9 of
Minnesota Statutes, section 462.3593.
ARTICLE II. Temporary Family Health Care Dwellings
2.01 Pursuant to authority granted by Minnesota Statutes, Section 462.3593,
subdivision 9, the City of Crystal opts-out of the requirements of Minnesota
Statutes sections 462.3593, which defines and regulates Temporary Family Health
Care Dwellings.
ARTICLE III. Effective Date
3.01 This ordinance is effective upon adoption and 30 days after publication.
3.02 This Ordinance shall not be codified into the City’s Code of Ordinances.
6.5
ADOPTED this _______day of _______________________, 2016, by the City Council of the
City of Crystal.
First Reading: ____________, 2016
Second Reading: __________, 2016
Council Adoption:_________, 2016
Publication:
Effective Date:
BY THE CITY COUNCIL
Jim Adams, Mayor
ATTEST:
____________________________
Christina Serres, City Clerk
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0PULTO r'tkrf _
Please hand this form to the City Clerk before the meeting begins.
To provide ample opportunity for all, speaking time is limited
to three minutes and topic discussion is limited to 10 minutes.
(Information provided on this form is open to the public)
(please print clearly)
The topic I wish to address is:
Name•
Address:
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Thank you for your attendance and participation.