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2017.11.07 Work Session Packet (1st) Posted: Nov. 3, 2017 City Council First Work Session Agenda Nov. 7, 2017 6:15 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 Nov. 7, 2017 in Conference Room A, 4141 Douglas Dr. N., Crystal, Minnesota. I. Attendance Council Members Staff ____ Kolb ____ Norris ____ LaRoche ____ Therres ____ Parsons ____ Gilchrist ____ Adams ____ Elholm ____ Budziszewski ____ Larson ____ Dahl ____ McGann ____ Deshler ____ Ray ____ Revering ____ Sutter ____ Serres II. Agenda The purpose of the work session is to discuss the following agenda item: 1. Fire suppression systems 2. Third quarter financial report 3. Preview of 2018 budget summary document 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 1 510008v2 TJG CR225-423 Kennedy Troy J. Gilchrist 470 US Bank Plaza 200 South Sixth Street Minneapolis MN 55402 (612) 337-9214 telephone (612) 337-9310 fax tgilchrist@kennedy-graven.com http://www.kennedy-graven.com & Graven C H A R T E R E D Also: St. Cloud Office 501 W. Germain Street, Suite 304 St. Cloud, MN 56301 (320) 240-8200 telephone MEMORANDUM To: Crystal City Council From: Troy Gilchrist Re: Modification of Sprinkler Requirements Date: November 2, 2017 --------------------------------------------------------------------------------------------------------------------- I was asked to research and report back to the Council on its authority with respect to sprinkler system requirements. Specifically, the Council desires to know if it has the authority to modify the sprinkler requirements to reduce the burdens they impose on owners required to install sprinkler systems in existing buildings. As the Council is aware, Article VII, section 4 of the West Metro Fire-Rescue District Joint Powers Agreement (“JPA”) requires each member city to adopt the Minnesota Fire Code and “to adopt optional appendix chapter 1306 of the Minnesota Building Code for ‘Special Fire Protection Systems.’” The City of Crystal complied with that provision and Section 400.01, subd. 3(b)(1) of the Crystal City Code adopts “Chapter 1306, Special Fire Protection Systems, with option 1306.0020, subdivision 2.” As the Council directed, I prepared an amendment to this section to change from option 2 to option 3. Changing that option does not violate the terms of the JPA or require it to be amended. My office confirmed with the Minnesota Department of Labor and Industry that a city ma y choose to opt back out of the optional Chapter 1306. In other words, the Council could amend its Code to remove special fire protection systems requirements. This move would, however, not be consistent with the City’s obligations under the JPA and would require all of the member cities to agree to amend the JPA to remove the requirement or make adoption optional. In the meantime, the City is exercising its authority to change from option 2 to option 3. The state asked that the City inform Doug Nord at 651-284-5838 once the change occurs so he can note the change in the state’s records. In looking more specifically at the question of whether the City can go beyond merely choosing between option 2 or option 3 and actually adopt its own modified sprinkler requirement, I 2 510008v2 TJG CR225-423 reviewed the authorizing legislation in Minnesota Statues, chapter 326B, Minnesota Rules, Chapter 1306, and case law dealing with attempts to adopt local variations to the State Building Code. As explained below, the short answer to the question of whether the Council can adopt its own sprinkler requirement is no. Under Minnesota Rule, part 1306.0020, subpart 1, a city adopting Chapter 1306 must adopt it with “either subpart 2 or 3, without amendment.” (emphasis added). Additionally, Minnesota Rule, part 1306.0010 indicates that “[t]his chapter, if adopted, must be adopted without amendment.” In other words, this optional chapter of the State Building Code is established as an all in or all out proposition, with the only remaining option being the adoption, without amendment, of option 2 or option 3. This limitation is consistent with the general limitation placed on local governments when adopting the State Building Code. The application and enforcement provisions of the State Building Code in Minnesota Statutes, section 326B.121 includes the following:  “The State Building Code supersedes the building code of any municipality.” Subdivision 1(b); and  “A municipality must not by ordinance, or through development agreement, require building code provisions regulating components or systems of any structure that are different from any provision of the State Building Code.” Subdivision 2(c). Attempts by cities to enforce their own modifications to the State Building Code have uniformly been struck down. In City of Minnetonka v. Mark Z. Jones Associates, Inc., 236 N.W.2d 163 (Minn. 1975), the Minnesota Supreme Court found a city ordinance that was interpreted as requiring certain emergency lighting and imposed a stricter sprinkler requirement than imposed under the State Building Code to be preempted by state law. The current State Building Code more specifically addresses sprinklers than it did in 1975, but even at that time the court found it was “influenced, if not governed, by the fact that the State Building Code itself deals extensively with fire prevention and fire-related safety measures.” Id. at 167. “We are not persuaded that the legislature, in authorizing the State Building Code and providing that it should supersede all other building codes, was unmindful of the public's overriding concern for fire safety.” Id. Finally, the court noted that it “is difficult to conceive of any matter of public concern which should be given greater attention in the State Building Code than fire prevention. We therefore reject the argument that the legislature did not intend to preempt regulations dealing with fire prevention in authorizing the code.” Id. In City of Morris v. Sax Investments, Inc., 749 N.W.2d 1 (Minn. 2008), the Minnesota Supreme Court address a rental ordinance that included various code type of requirements that were challenged as being in conflict with and prohibited by the State Building Code. In analyzing the scope of the preemption language currently found in Minnesota Statutes, section 326B.121 and that is quoted above, the court found “this language prohibits a municipal ordinance if (1) the ordinance is a building code provision; (2) it regulates a component or system of a residential structure; and (3) it is different from a provision of the State Building Code.” Id. at 7. As to the first element, “if the subject of the regulation is included within the State Building Code, it is a 3 510008v2 TJG CR225-423 ‘building code’ regulation.” Id. at 8. As to the second element, the language is defined broadly to include a constituent part of a structure or a group of devices or artificial objects forming a network for distributing something. Finally, the third element means “any difference from the State Building Code is prohibited. Thus, even a provision that is merely additional and complementary to a provision in the State Building Code is prohibited.” Id. at 10. Finally, in Builders Ass’n of Minnesota v. City of St. Paul, 819 N.W.2d 172 (Minn. Ct. App. 2012) the Minnesota Court of Appeals considered an egress window policy (not ordinance) adopted by the city’s Department of Safety and Inspection (not the city council). The policy imposed stricter minimum size requirements and required compliance with those standards when replacing windows, which was argued to be too burdensome and in conflict with the State Building Code. In the case the court dealt with an argued inconsistency between the State Building Code and the State Fire Code. Given the broad scope of the State Building Code, the court found “the state fire code does not supersede the building code, even with regard to those requirements that the state fire marshal deems necessary to ensure a minimum level of fire prevention.” Id. at 180. The city argued that because the requirement was in a policy, not an ordinance, it was not preempted by the State Building Code. However, the court did not agree with that argument. The city admitted the policy had the effect of law and so the court recognized that under this theory a city could undermine the entire State Building Code by simply adopting its own code as a policy. The court concluded the “city may not avoid the preemption provisions of the state building code by terming its regulation a ‘policy’ rather than adopting it through formal enactment.” Id. at 182. These cases underscore the recollection that I mentioned during the worksession that the legislature has been careful to preclude local governments from enacting their own building codes or modifying the State Building Code. So, under the express language in Minnesota Statutes, section 326B.121 and Minnesota Rules, chapter 1306, as applied by the decisions discussed above, it seems clear the City is prohibited from attempting to modify the sprinkler requirements in Minnesota Rules, chapter 1306 or to develop its own sprinkler requirements. Please feel free to let me know if there are any questions. City of Crystal Crystal, Minnesota As of September 30, 2017 3rd Quarter Report October 30, 20127 ACCOUNTANT’S COMPILATION REPORT Honorable Mayor and City Council City of Crystal Crystal, Minnesota Management is responsible for accompanying financial statements of the City of Crystal, Minnesota (the City), which comprise the budget to actual statement of revenues and expenditures for the General and enterprise funds as of September 30, 2017 in accordance with accounting principles generally accepted in the United States of America. We have performed a compilation engagement in accordance with Statements on Standards for Accounting and Review Services promulgated by the Accounting and Review Services Committee of the AICPA. We did not audit or review the financial statements nor were we required to perform any procedures to verify the accuracy or completeness of the information provided by management. Accordingly, we do not express an opinion, a conclusion, nor provide any form of assurance on these financial statements. Management has elected to omit substantially all of the disclosures and the statement of cash flows required by accounting principles generally accepted in the United States of America. If the omitted disclosures and the statement of cash flows were included in the financial statements, they might influence the user’s conclusions about the City’s financial position, results of operations, and cash flows. Accordingly, the financial statements are not designed for those who are not informed about such matters. Sincerely, AEM FINANCIAL SOLUTIONS, LLC -2- October 30, 20127 Honorable Mayor and City Council City of Crystal Crystal, Minnesota Dear Honorable Mayor and City Council: We have reconciled all bank accounts through September 30, 2017 and reviewed activity in all funds. The following is a summary of our observations. This information is preliminary due to year end entries that are yet to be made. All information presented is unaudited. Cash and Investments The City’s cash and investment balances are as follows: Increase/ 09/30/2017 12/31/2016 (Decrease) Checking 4,562,651$ 15,061,501$ (10,498,850)$ Investments (at market value)33,922,066 24,102,794 9,819,272 Total cash and investments 38,484,717$ 39,164,295$ (679,578)$ Increase/ 09/30/2017 12/31/2016 (Decrease) Checking 4,562,651$ 15,061,501$ $ (10,498,850) Money market 14,862,140 1,702,943 13,159,197 Negotiable CDs 10,656,144 14,450,658 (3,794,514) Municipal securities 4,736,401 5,466,983 (730,582) Government agency securities 3,667,381 2,482,210 1,185,171 Total investments 38,484,717$ 39,164,295$ (679,578)$ Investment Type -3- General Fund YTD YTD Percent of YTD YTD Percent of Budget Actual YTD Budget Budget Actual YTD Budget Receipts Disbursements Property Taxes 6,501,750$ 4,517,471$ 69 %Mayor and City Council 97,064$ 98,842$ 101.8 % Special Assessments 86,175 35,449 41 Administration 926,240 892,253 96.3 Licenses and permits 627,192 667,491 106.4 Human Resources 39,134 44,024 112.5 Intergovernmental 1,480,432 1,136,859 76.8 Assessing 200,418 155,087 77.4 Charges for services 574,258 555,208 96.7 Legal 72,750 32,484 44.7 Fines and forfeitures 229,500 233,887 101.9 Elections 9,536 10,554 110.7 Administrative Fines 15,000 12,042 80.3 Finance 442,142 496,247 112.2 Interest 45,000 37,317 82.9 Police 3,792,900 3,812,210 100.5 Miscellaneous 15,150 29,925 197.5 Fire 975,083 820,833 84.2 Operating transfers in 334,106 359,098 107.5 Planning & Code Enforcement 62,384 58,033 93.0 Building Inspection 207,735 200,640 96.6 9,908,563$ 7,584,747$ 76.5 %Housing Inspection 142,167 134,911 94.9 Health Department 7,575 1,983 26.2 Engineering 296,830 284,104 95.7 Varies more than 10% than budget positively Street Maintenance 726,101 626,685 86.3 Varies more than 10% than budget negatively Park Maintenance 617,363 598,899 97.0 Within 10% of budget Forestry 55,575 34,203 61.5 City Buildings 142,562 160,555 112.6 Recreation 623,521 627,182 100.6 Community Center 318,933 289,979 90.9 `Aquatic Center 198,302 238,860 120.5 Operating transfers out - - N/A 9,954,313$ 9,618,568$ 96.6 % Key $- $1,000,000 $2,000,000 $3,000,000 $4,000,000 $5,000,000 $6,000,000 $7,000,000 $8,000,000 12/31/2015 January February March April May June July August September October November December General Fund Cash Balances 2016-2017 2017 2016 -4- Current short-term rates being offered by financial institutions are very low as evidenced by the table of U.S. Treasury rates below. The U.S. Treasury rates provide a benchmark perspective for rate of return. Date 1 mo 6 mo 1 yr 2 yr 3 yr 5 yr 7 yr 10 yr 12/31/2010 0.07 0.19 0.29 0.61 1.02 2.01 2.71 3.30 12/30/2011 0.01 0.06 0.12 0.25 0.36 0.83 1.35 1.89 12/31/2012 0.02 0.11 0.16 0.25 0.36 0.72 1.18 1.78 09/30/2013 0.03 0.04 0.10 0.33 0.63 1.39 2.02 2.64 12/31/2013 0.01 0.10 0.13 0.38 0.78 1.75 2.45 3.04 03/31/2014 0.03 0.07 0.13 0.44 0.90 1.73 2.30 2.73 06/30/2014 0.02 0.07 0.11 0.47 0.88 1.62 2.13 2.53 09/30/2014 0.02 0.03 0.13 0.58 1.07 1.78 2.22 2.52 12/31/2014 0.03 0.12 0.25 0.67 1.10 1.65 1.97 2.17 03/31/2015 0.05 0.14 0.26 0.56 0.89 1.37 1.71 1.94 06/30/2015 0.02 0.11 0.28 0.64 1.01 1.63 2.07 2.35 09/30/2015 - 0.08 0.31 0.64 0.92 1.37 1.75 2.06 12/31/2015 0.14 0.49 0.65 1.06 1.31 1.76 2.09 2.27 03/31/2016 0.05 0.14 0.16 0.26 0.56 0.89 1.37 1.71 06/30/2016 0.20 0.36 0.45 0.58 0.71 1.01 1.29 1.49 09/30/2016 0.20 0.45 0.59 0.77 0.88 1.14 1.42 1.60 12/31/2016 0.44 0.62 0.85 1.20 1.47 1.93 2.25 2.45 03/31/2017 0.74 0.91 1.03 1.27 1.50 1.93 2.22 2.40 06/30/2017 0.84 1.14 1.24 1.38 1.55 1.89 2.14 2.31 09/29/2017 0.96 1.20 1.31 1.47 1.62 1.92 2.16 2.33 Treasury Yields Budget Summary A more detailed analysis of funds is included as Attachment A. Cash Balance Summary A detailed view of department totals compared with budget is included as Attachment B. Investment Summary A detailed summary of current investments is included as Attachment C. Enterprise Fund Summary A detailed summary of enterprise fund financial results is included as Attachment D. Revenue and Expenditures A detail of revenues and expenditures can be provided upon request. * * * * * This information is unaudited and is intended solely for the information and use of management and City Council and is not intended and should not be used by anyone other than these specified parties. If you have any questions or wish to discuss any of the items contained in this letter or the attachments, please feel free to contact us at your convenience. We wish to thank you for the continued opportunity to be of service and for the courtesy and cooperation extended to us by your staff. Sincerely, AEM FINANCIAL SOLUTIONS, LLC -5- ATTACHMENT ACITY OF CRYSTAL, MINNESOTA STATEMENT OF REVENUE AND EXPENDITURES - BUDGET AND ACTUAL - GENERAL FUND (UNAUDITED) FOR THE THREE MONTHS ENDED SEPTEMBER 30, 2017 Budget Thru Actual Variance - 2017 September Thru Favorable Budget 75%September (Unfavorable) REVENUES Property Taxes *8,669,000$ 6,501,750$ 4,517,471$ (1,984,279)$ (1)69 % Special Assessments 114,900 86,175 35,449 (50,726) (1)41 Licenses and permits 836,256 627,192 667,491 40,299 106 Intergovernmental 1,973,909 1,480,432 1,136,859 (343,573) (2)77 Charges for services 765,677 574,258 555,208 (19,050) 97 Fines and forfeitures 306,000 229,500 233,887 4,387 102 Administrative Fines 20,000 15,000 12,042 (2,958) 80 Interest 60,000 45,000 37,317 (7,683) 83 Miscellaneous 20,200 15,150 29,925 14,775 (3)198 TOTAL REVENUES 12,765,942 9,574,457 7,225,649 (2,348,808) 75 EXPENDITURES Mayor and City Council 129,418 97,064 98,842 (1,779) 102 Administration 1,234,987 926,240 892,253 33,987 96 Human Resources 52,179 39,134 44,024 (4,890) 112 Assessing 267,224 200,418 155,087 45,331 (4)77 Legal 97,000 72,750 32,484 40,266 (5)45 Elections 12,715 9,536 10,554 (1,018) 111 Finance 589,523 442,142 496,247 (54,105) 112 Police 5,057,200 3,792,900 3,812,210 (19,310) 101 Fire 1,300,110 975,083 820,833 154,250 84 Planning & Code Enforcement 83,178 62,384 58,033 4,351 93 Building Inspection 276,980 207,735 200,640 7,095 97 Housing Inspection 189,556 142,167 134,911 7,256 95 Health Department 10,100 7,575 1,983 5,592 26 Engineering 395,773 296,830 284,104 12,726 96 Street Maintenance 968,134 726,101 626,685 99,416 86 Park Maintenance 823,150 617,363 598,899 18,464 97 Forestry 74,100 55,575 34,203 21,372 (6)62 City Buildings 190,082 142,562 160,555 (17,994) 113 Recreation 831,361 623,521 627,182 (3,661) 101 Community Center 425,244 318,933 289,979 28,954 91 Aquatic Center 264,403 198,302 238,860 (40,558) (7)120 TOTAL EXPENDITURES 13,272,417 9,954,313 9,618,568 335,745 96.6 EXCESS REVENUES (EXPENDITURES)(506,475) (379,856) (2,392,919) (2,013,063) OTHER FINANCING SOURCES (USES) Operating transfers in 445,475 334,106 359,098 24,992 107 Operating transfers out - - - - N/A TOTAL OTHER FINANCING SOURCES (USES)445,475 334,106 359,098 24,992 107 % EXCESS (DEFICIENCY) OF REVENUES AND OTHER FINANCING SOURCES OVER (UNDER) EXPENDITURES AND OTHER USES (61,000)$ (45,750)$ (2,033,821)$ (1,988,071)$ Property taxes, assessments, and local government aids are only paid twice a year. (1)Tax settlements and special assessments are received in May and December. (2)Variance anticipated due to the timing of local government aid. (3)Variance due to receiving payment on nuisance property fees. (4)Variance due to Hennepin County not sending the 2nd quarter invoice for Assessing services. (5)Variance due to less expenditures for legal services. (6)Variance due to no tree removals being performed as of June (7)Variance due to timing of pool opening for season. September Explanation of items percentage received/expended less than 80% or greater than 120% and $ variance greater than $20,000. Percent Received or Expended Based on Budget thru * -6- ATTACHMENT B YTD YTD % Balance Balance Balance Change from Change From 09/30/2016 12/31/2016 09/30/2017 12/31/2016 12/31/2016 100 GENERAL 5,109,208$ 5,046,828 5,418,204$ 371,376$ 7% 206 TIF #2151 - ANTHONY/CUB FOODS 232,450 310,370 333,089 22,719 7% 209 TIF #2154 - SUB MOTEL/ IND EQ 53,824 86,073 77,290 (8,783) -10% 210 TIF #2155 - LAMP/THE HEATHERS 1,324,838 1,400,752 1,336,792 (63,960) -5% 220 EDA 3,677,083 3,756,963 3,361,350 (395,613) -11% 230 COMM DEV BLOCK GRANT (CDBG)- - - - N/A 235 POLICE EQUIPMENT REVOLVING 3,059,390 3,109,980 3,017,040 (92,940) -3% 240 CITY INITIATIVES 50,111 67,825 71,548 3,723 5% 245 SPECIAL PROJECTS / GRANTS 23,654 18,202 31,505 13,303 73% 250 HENNEPIN RECYCLING GROUP 1,672,596 1,704,706 1,489,249 (215,457) -13% 303 CERTIFICATES OF INDEBTEDNESS - - - - N/A 327 2005B AQUATIC CENTER BONDS 204,170 304,239 113,780 (190,459) (1)-63% 329 2008 IMP BONDS (PH 9)629,202 716,330 632,197 (84,133) -12% 330 2009A IMP BONDS (PH 10)1,147,831 1,270,471 1,162,551 (107,920) -8% 331 2009B & 2010A&B - HWY 81 BONDS 727,768 734,255 740,318 6,063 1% 332 2011 IMP BONDS (PH 11)515,616 603,894 522,648 (81,246) -13% 333 2012 IMP BONDS (PH 12)631,664 786,864 708,931 (77,933) -10% 334 2013 IMP BONDS (PH 13)665,807 831,971 695,947 (136,024) -16% 335 2015 IMP BONDS (PH 14)275,953 477,350 367,983 (109,367) (1)-23% 336 2016 IMP BONDS (PH 15)- 6,306 286,939 280,633 (2)4450% 337 2017 IMP BONDS (PH 16)- - (35,137) (35,137) N/A 404 CABLE TV EQUIPMENT 60,730 69,761 99,510 29,749 43% 405 PERM IMPROVE REVOLVING (PIR)8,146,311 8,440,722 7,832,978 (607,744) -7% 408 MAJOR BUILDING REPLACEMENT (346,837) 138,177 388,203 250,026 (2)181% 409 FIRE EQUIPMENT REVOLVING 648,635 583,793 - (583,793) N/A 410 STREET MAINTENANCE 1,458,016 1,584,406 1,622,454 38,048 2% 415 STREET RECONSTRUCTION 2,896,611 2,489,717 3,707,677 1,217,960 (3)49% 505 WATER UTILITY 215,513 475,295 796,152 320,857 (4)68% 510 SEWER UTILITY 2,415,839 2,302,009 1,839,387 (462,622) (5)-20% 515 STORM DRAINAGE UTILITY 750,844 274,477 543,690 269,213 (5)98% 520 STREET LIGHTS UTILITY 477,208 501,807 433,248 (68,559) -14% 525 RECYCLING UTILITY 104,863 110,197 112,100 1,903 2% 605 SELF-INSURANCE 774,842 960,555 777,094 (183,461) -19% 37,603,740$ 39,164,295$ 38,484,717$ (679,578)$ Item Explanation of changes greater than $100,000 and 20% (1)Variance due to a larger bond payment in February (2)Variance due to a special assessment pre-payment. (3)Variance due to timing bond proceeds. (4)Variance due less funding going to JWC for 2017 Capital Improvement Funding and less expenditures from Maintenance/Repair accounts and Service Contracts accounts. (5)Variance due to the purchase of capital equipment. CITY OF CRYSTAL, MINNESOTA UNAUDITED CASH BALANCES BY FUND SEPTEMBER 30, 2016, DECEMBER 31, 2016 AND SEPTEMBER 30, 2017 -7- ATTACHMENT B General Fund TIF EDA Special Revenue Debt Service Enterprise Capital Projects Internal Service Investments Agency Balance increased more than 10% over prior year Balance decreased more than 10% over prior year Balance within 10% of prior year CITY OF CRYSTAL, MINNESOTA UNAUDITED CASH BALANCES BY FUND SEPTEMBER 30, 2016, DECEMBER 31, 2016 AND SEPTEMBER 30, 2017 Key Fund $- $2,000,000 $4,000,000 $6,000,000 $8,000,000 $10,000,000 $12,000,000 $14,000,000 $16,000,000 $18,000,000 General Fund EDA Debt Service Capital Projects TIF Special Revenue Enterprise Internal Service Agency Cash Balance by Fund Compared to Prior Year 09/30/2016 09/30/2017 -8- CITY OF CRYSTAL SCHEDULE OF INVESTMENTS FOR THE MONTH ENDING SEPTEMBER 30, 2017 ATTACHMENT C Institution Description Type Wells Fargo CHECKING Checking Wells Fargo CASH Wells Fargo MONEY MARKET Money Market Wells Fargo CAPITAL BANK Brokered CD Wells Fargo BERKSHIRE BANK, PITTSFIELD Brokered CD Wells Fargo GUARANTY B & T Brokered CD Wells Fargo ENTERPRISE B & T Brokered CD Wells Fargo BMO HARRIS BANK Brokered CD Wells Fargo WEX BANK Brokered CD Wells Fargo BANKUNITED Brokered CD Wells Fargo BANK LEUMI, NY Brokered CD Wells Fargo ESSA B & T Brokered CD Wells Fargo ANTIGO, WI BONDS Municipal Securities Wells Fargo HAWKEYE, IA COMMUNITY COLLEGE Municipal Securities Wells Fargo TCF NATIONAL BANK Brokered CD Wells Fargo NBT BANK NATIONAL ASSOCIATION Brokered CD Wells Fargo MARLIN BUSINESS BANK Brokered CD Wells Fargo ISREAL DISCOUNT BANK OF NY Brokered CD Wells Fargo POCONO MT, PA - SCHOOL DISTRICT Municipal Securities Wells Fargo WASHINGTON TRUST Brokered CD Wells Fargo PRIVATEBANK & TRUST CO Brokered CD Wells Fargo GE CAPITAL BANK Brokered CD Wells Fargo ATLANTIC COAST BANK Brokered CD Wells Fargo FIRST COMMERCE BANK Brokered CD Wells Fargo AMERICAN EXPRESS BANK Brokered CD Wells Fargo DISCOVER BANK Brokered CD Wells Fargo JACKSON COUNTY BANK Brokered CD Wells Fargo IBERIA BANK, LA Brokered CD Wells Fargo LANDMARK COMMUNITY BANK Brokered CD Wells Fargo ONALASKA, WI - UTL GO BOND Municipal Securities Wells Fargo W LAKE SUPERIOR - SAN DIST BOND Municipal Securities Wells Fargo CONNECTICUT STATE GO BOND Municipal Securities Wells Fargo FIDELITY BANK Brokered CD Wells Fargo GOLDMAN SACHS BANK Brokered CD Wells Fargo SALLE MAE BANK Brokered CD Wells Fargo COMPASS BANK Brokered CD Wells Fargo AMERICAN EXPRESS CENTURION Brokered CD Wells Fargo SNOHOMISH COUNTY, WA BONDS Municipal Securities Wells Fargo BMW BANK Brokered CD Wells Fargo BOSTON PRIVATE B & T Brokered CD Wells Fargo THIRD FEDREAL SAV & LOAN Brokered CD Wells Fargo UNITED BANKERS BANK Brokered CD Wells Fargo SECURITY STATE BANK Brokered CD Wells Fargo FRANKLIN SYNERGY BANK Brokered CD Wells Fargo GREEN BAY, WI PUBLIC SCHOOLS Municipal Securities Wells Fargo CATHAY BANK - LA, CA Brokered CD Wells Fargo CONTINENTAL BANK Brokered CD Wells Fargo ALLY BANK Brokered CD Wells Fargo WOORI AMERICA BANK Brokered CD Wells Fargo REVERE BANK Brokered CD Wells Fargo ESPANOLA, NM PUBLIC SCHOOLS Municipal Securities Wells Fargo MAIN STREET BANK Brokered CD Wells Fargo WAYNE SAVINGS COMMUNITY BANK Brokered CD Unadjusted Market Value Deposits -Expenditures -Market Value Market Value Unrealized 1/1/2017 Purchases Sales Transfers Interest 9/30/2017 9/30/2017 gain / loss 1,584,680.52 22,151,935.73 (18,958,779.60) - - 4,777,836.65 4,777,836.65 - 1,584,680.52 22,151,935.73 (18,958,779.60) - - 4,777,836.65 4,777,836.65 - - - -- - - - - 7,479,806.95$ 17,757,623.78$ (15,750,000.00)$ 224,950.42$ 44,818.35$ 9,757,199.50$ 9,757,199.50 -$ 245,000.00 - (245,000.00) (655.14) 655.14 - - - 245,000.00 - (245,000.00) (718.88) 718.88 - - - 245,000.00 - (245,000.00) (771.59) 771.59 - - - 245,000.00 - (245,000.00) (612.17) 612.17 - - - 245,000.00 - (245,000.00) (1,093.44) 1,093.44 - - - 245,000.00 - (245,000.00) (1,026.99) 1,026.99 - - - 245,000.00 - (245,000.00) (1,093.44) 1,093.44 - - - 245,000.00 - (245,000.00) (1,336.42) 1,336.42 - - - 245,000.00 - (245,000.00) (453.08) 453.08 - - - 250,000.00 - (250,000.00) (3,750.00) 3,750.00 - - - 175,000.00 - (175,000.00) (1,137.50) 1,137.50 - - - 245,000.00 - (245,000.00) (1,038.40) 1,038.40 - - - 245,000.00 - (245,000.00) (1,160.56) 1,160.56 - - - 245,000.00 - (245,000.00) (1,038.39) 1,038.39 - - - 245,000.00 - (245,000.00) (1,228.36) 1,228.36 - - - 550,000.00 - (550,000.00) (4,518.25) 4,518.25 - - - 245,000.00 - (245,000.00) (1,221.64) 1,221.64 - - - 245,391.76 - (245,000.00) (2,695.00) 2,695.00 391.76 - (391.76) 245,438.55 - (245,000.00) (3,185.00) 3,185.00 438.55 - (438.55) 245,271.46 - (245,000.00) (1,631.09) 1,631.09 271.46 - (271.46) 245,256.27 - (245,000.00) (1,631.09) 1,631.09 256.27 - (256.27) 245,435.12 - (245,000.00) (3,062.50) 3,062.50 435.12 - (435.12) 246,589.56 - (245,000.00) (4,042.50) 4,042.50 1,589.56 - (1,589.56) 245,255.78 - (245,000.00) (1,617.67) 1,617.67 255.78 - (255.78) 245,409.40 - (245,000.00) (1,938.19) 1,938.19 409.40 - (409.40) 245,484.12 - (245,000.00) (2,382.21) 2,382.21 484.12 - (484.12) 210,770.70 - - (1,417.50) 1,417.50 210,770.70 210,000.00 (770.70) 299,910.00 - - (1,500.00) 1,500.00 299,910.00 300,000.00 90.00 500,825.00 - - (3,155.00) 3,155.00 500,825.00 499,955.00 (870.00) 244,744.22 - - - - 244,744.22 244,963.99 219.77 246,022.39 - - (1,771.38) 1,771.38 246,022.39 245,070.56 (951.83) 245,482.16 - - (1,397.17) 1,397.17 245,482.16 245,051.94 (430.22) 245,392.49 - - (1,397.17) 1,397.17 245,392.49 245,041.41 (351.08) 246,136.80 - - (1,822.40) 1,822.40 246,136.80 245,192.82 (943.98) 504,080.00 - - (5,000.00) 5,000.00 504,080.00 500,565.00 (3,515.00) 245,590.45 - - (1,771.38) 1,771.38 245,590.45 245,094.82 (495.63) 246,674.82 - - (4,165.00) 4,165.00 246,674.82 245,440.02 (1,234.80) 245,505.68 - - (1,527.05) 1,527.05 245,505.68 245,070.07 (435.61) 245,575.75 - - (1,931.16) 1,931.16 245,575.75 245,089.92 (485.83) 245,586.04 - - (1,931.16) 1,931.16 245,586.04 245,089.67 (496.37) 244,408.57 - - (1,655.23) 1,655.23 244,408.57 244,618.29 209.72 437,388.15 - - (3,262.50) 3,262.50 437,388.15 435,508.95 (1,879.20) 244,972.81 - - (1,631.09) 1,631.09 244,972.81 244,778.52 (194.29) 245,199.19 - - (1,465.97) 1,465.97 245,199.19 244,877.75 (321.44) 245,300.62 - - (1,518.66) 1,518.66 245,300.62 244,892.45 (408.17) 245,954.77 - - (2,390.95) 2,390.95 245,954.77 245,186.20 (768.57) 245,825.41 - - (2,201.98) 2,201.98 245,825.41 245,106.33 (719.08) 483,619.20 - - (9,600.00) 9,600.00 483,619.20 482,812.80 (806.40) 246,167.67 - - (1,649.22) 1,649.22 246,167.67 245,103.88 (1,063.79) 246,123.33 - - (2,201.98) 2,201.98 246,123.33 245,079.14 (1,044.19) -9- CITY OF CRYSTAL SCHEDULE OF INVESTMENTS FOR THE MONTH ENDING SEPTEMBER 30, 2017 ATTACHMENT C Institution Description Type Wells Fargo REPUBLIC BANK Brokered CD Wells Fargo HAWAII STATE GO BONDS Municipal Securities Wells Fargo KEY BANK Brokered CD Wells Fargo RACINE, WI GO BOND Brokered CD Wells Fargo WEBSTER BANK Brokered CD Wells Fargo SUSSEX BANK Brokered CD Wells Fargo INVESTORS COMMUNITY BANK Brokered CD Wells Fargo FREDDIE MAC Government Securities Wells Fargo BRIDGEWATER BANK Brokered CD Wells Fargo BANKERS BANK OF KANSAS Brokered CD Wells Fargo FEDERAL HOME LOAN BANK Government Securities Wells Fargo FIRST SOURCE BANK Brokered CD Wells Fargo BELMONT SAVINGS BANK Brokered CD Wells Fargo BANK GROVE Brokered CD Wells Fargo CIT BANK Brokered CD Wells Fargo COMENITY CAPITAL BANK Brokered CD Wells Fargo FEDERAL HOME LOAN BANK Government Securities Wells Fargo FEDERAL HOME LOAN BANK Government Securities Wells Fargo FANNIE MAE Government Securities Wells Fargo CELTIC BANK Brokered CD Wells Fargo ENERBANK USA Brokered CD Wells Fargo GREAT PLAINS BANK - EUREKA, SD Brokered CD Wells Fargo FEDERAL HOME LOAN BANK Brokered CD Wells Fargo EVERBANK Brokered CD Wells Fargo CAPITAL ONE NA Brokered CD Wells Fargo CAPITAL ONE BANK USA Brokered CD Wells Fargo MEDALLION BANK - SALT LK CTY Brokered CD Wells Fargo BLOOMINTON, MN - TAXABLE BOND Municipal Securities 4M Fund 4M FUND Money Market 4M Fund 4M PLUS Money Market Total cash and investments Unadjusted Market Value Deposits -Expenditures -Market Value Market Value Unrealized 1/1/2017 Purchases Sales Transfers Interest 9/30/2017 9/30/2017 gain / loss 246,495.73 - - (2,198.96) 2,198.96 246,495.73 245,305.03 (1,190.70) 836,569.80 - - (5,427.50) 5,427.50 836,569.80 833,112.90 (3,456.90) 246,691.24 - - (1,579.41) 1,579.41 246,691.24 245,429.24 (1,262.00) 335,247.90 - - (2,763.75) 2,763.75 335,247.90 335,244.55 (3.35) 246,394.30 - - (1,710.30) 1,710.30 246,394.30 245,263.38 (1,130.92) 245,581.39 - - (1,832.47) 1,832.47 245,581.39 244,709.92 (871.47) 245,568.16 - - (2,758.74) 2,758.74 245,568.16 244,695.71 (872.45) 995,953.00 - - (5,625.00) 5,625.00 995,953.00 994,921.00 (1,032.00) 243,944.05 - - (2,298.95) 2,298.95 243,944.05 243,502.81 (441.24) 247,297.12 - - (2,850.74) 2,850.74 247,297.12 245,805.56 (1,491.56) 1,016,558.52 - - (14,025.00) 14,025.00 1,016,558.52 1,016,914.50 355.98 247,718.03 - - (1,832.47) 1,832.47 247,718.03 246,078.74 (1,639.29) 248,340.82 - - (2,260.04) 2,260.04 248,340.82 246,526.60 (1,814.22) 249,677.79 - - (2,443.29) 2,443.29 249,677.79 247,515.42 (2,162.37) 249,188.52 - - (2,612.10) 2,612.10 249,188.52 247,159.68 (2,028.84) 243,652.26 - - (2,758.74) 2,758.74 243,652.26 242,896.19 (756.07) 987,445.00 - - (6,250.00) 6,250.00 987,445.00 990,048.00 2,603.00 982,840.00 - - (6,145.83) 6,145.83 982,840.00 985,665.00 2,825.00 740,335.50 - - (6,375.00) 6,375.00 740,335.50 748,852.50 8,517.00 247,747.19 - - (3,862.26) 3,862.26 247,747.19 246,367.35 (1,379.84) 244,557.29 - - (5,999.45) 5,999.45 244,557.29 245,065.91 508.62 242,844.49 - - (3,402.46) 3,402.46 242,844.49 243,600.32 755.83 1,241,022.50 - - (12,695.31) 12,695.31 1,241,022.50 1,247,801.25 6,778.75 242,906.97 - - - - 242,906.97 243,585.37 678.40 246,833.58 - - (2,748.70) 2,748.70 246,833.58 246,941.87 108.29 246,833.58 - - (2,748.70) 2,748.70 246,833.58 246,941.87 108.29 244,521.27 - - (3,770.33) 3,770.33 244,521.27 244,959.82 438.55 409,945.20 - - (4,349.33) 4,349.33 409,945.20 405,426.00 (4,519.20) 37,396,684.55 17,757,623.78 (26,580,000.00) (0.00) 269,768.77 28,844,077.10 28,817,125.52 (26,951.58) 2,679,464.94 2,175,628.75 (7,000.00) 43,687.71 16,394.55 4,908,175.95 4,908,175.95 - 195,827.98 - - - 936.33 196,764.31 196,764.31 - 2,875,292.92 2,175,628.75 (7,000.00) 43,687.71 17,330.88 5,104,940.26 5,104,940.26 - 40,271,977.47$ 19,933,252.53$ (26,587,000.00)$ 43,687.71$ 287,099.65$ 38,726,854.01$ 38,699,902.43$ (26,951.58)$ -10- CITY OF CRYSTAL INVESTMENTS FOR THE MONTH ENDING SEPTEMBER 30, 2017 ATTACHMENT C Cost Market Value Variance Maturity 9/30/2017 9/30/2017 9/30/2017 Current 19,646,887$ 19,639,976$ (6,910)$ < 1 year 6,857,256 6,839,590 (17,667) 1-2 years 5,154,019 5,140,983 (13,036) 2-3 years 1,978,304 1,974,146 (4,159) 3-4 years 1,970,923 1,980,885 9,962 5+ years 3,119,465 3,124,322 4,858 38,726,854$ 38,699,902$ (26,952)$ Weighted average Rate of return 0.89% Average Maturity (years)0.451 Market Value Investment Type 9/30/2017 Money Market 14,862,140$ Brokered CD 10,656,144 Government Securities 4,736,401 Municipal Securities 3,667,381 Checking 4,777,837 38,699,902$ Deposits in Transit 82,361$ Outstanding Checks (297,547) Reconciled Balance 38,484,717$ $- $5,000,000 $10,000,000 $15,000,000 $20,000,000 $25,000,000 Current < 1 year 1-2 years 2-3 years 3-4 years 5+ years Maturities Cost Market Value 44% 31% 14% 11% Money Market Brokered CD Government Securities Municipal Securities -11- ATTACHMENT D Received or Expended Actual YTD Actual Variance -Based on Thru Budget Thru Favorable Budget Thru 09/30/2016 09/30/2017 09/30/2017 (Unfavorable) REVENUES Charges for Services 1,708,121$ 1,703,254$ 1,726,445$ 23,191$ 101.4 % Interest 13,424 21,600 14,704 (6,896) 68.1 Miscellaneous - 1,125 381 (744) 34 1,721,545 1,725,979 1,741,529 15,550 100.9 EXPENSES Personal services 268,169 277,776 277,614 162 99.9 Professional & Contractual Services 25,022 29,802 25,384 4,418 85.2 JWC & MCES 1,172,169 1,053,264 1,170,298 (117,034) 111.1 Utilities 18,033 19,425 17,727 1,698 91.3 Repair and Maintenance 16,764 22,245 15,110 7,135 67.9 Supplies 81,706 45,488 21,391 24,097 (1)47.0 Communications 1,099 1,755 1,354 401 77.2 Dues, Insurance, & Training 19,314 22,936 22,037 898 96.1 Capital Expenses 116,869 - 443,026 (443,026) (2)N/A Depreciation 108,567 118,421 118,422 (1) 100.0 1,827,712 1,591,112 2,112,362 (521,251) 99.6 OTHER FINANCING SOURCES (USES) Operating transfers in - - - - N/A Operating transfers out (Administration Srv Chrg)104,459 105,141 105,141 - 100.0 EXCESS REVENUES OVER EXPENSES (210,626)$ 29,727$ (475,974)$ (505,700)$ -1601.2 % Item Explanation of items percentage received/expended less than 80% or greater than 120% and $ variance greater than $10,000. (1)Variance is due less resources being used for Utility System Maintenance. (2)Variance is due a purchase of a Freightliner and Jetter in July. Percent 09/30/2017 CITY OF CRYSTAL, MINNESOTA STATEMENT OF REVENUES AND EXPENSES - BUDGET AND ACTUAL - SEWER FUND (UNAUDITED) FOR THE THREE MONTHS ENDED SEPTEMBER 30, 2017 $- $500,000 $1,000,000 $1,500,000 $2,000,000 $2,500,000 January February March April May June July August September October November December Sewer Sales 2016 2016 2017 -12- ATTACHMENT D Received or Expended Actual YTD Actual Based on Thru Budget Thru Budget Thru 09/30/2016 09/30/2017 09/30/2017 REVENUES Special Assessments 47,531$ 41,250$ 179,766$ 138,516$ 436 % Charge for Services 2,479,707 2,524,215 2,489,251 (34,964) 98.6 Interest 1,525 11,250 4,121 (7,129) 36.6 Miscellaneous 150,178 165,750 158,479 (7,271) 95.6 2,678,941 2,742,465 2,831,617 89,152 77.4 EXPENSES Personal services 269,181 277,776 278,470 (694) 100.2 Professional & Contractual Services 72,179 78,102 68,462 9,640 87.7 JWC & MCES 1,825,619 1,742,343 1,717,602 24,741 98.6 Utilities 6,733 6,300 7,494 (1,194) 119.0 Repair and Maintenance 40,587 56,625 21,485 35,140 (1)37.9 Supplies 37,764 43,050 41,616 1,434 96.7 Communications 681 2,430 1,074 1,356 44.2 Dues, Insurance, & Training 12,178 9,338 9,768 (430) 104.6 Capital Expenses 303,239 - 52,353 (52,353) (2)N/A Depreciation 140,778 172,338 172,341 (3) 100.0 Interest Expense - 7,200 - 7,200 - 2,708,940 2,395,502 2,370,665 24,837 74.2 OTHER FINANCING SOURCES (USES) Operating transfers in - - - - N/A Operating transfers out 104,459 105,141 105,141 - 100.0 EXCESS REVENUES OVER EXPENSES (134,457)$ 241,823$ 355,811$ 113,989$ 147.1 % Item Explanation of items percentage received/expended less than 80% or greater than 120% and $ variance greater than $10,000. (1)Variance due to timing of expenditures. (2)Variance due to a purchase of a GMC Sierra 3500. 09/30/2017 Percent CITY OF CRYSTAL, MINNESOTA STATEMENT OF REVENUES AND EXPENSES - BUDGET AND ACTUAL - WATER FUND (UNAUDITED) FOR THE THREE MONTHS ENDED SEPTEMBER 30, 2017 (Unfavorable) Variance - Favorable $- $500,000 $1,000,000 $1,500,000 $2,000,000 $2,500,000 $3,000,000 $3,500,000 January February March April May June July August September October November December Water Sales 2016 2016 2017 -13- ATTACHMENT D Received or Expended Actual YTD Actual Variance -Based on Annual Thru Budget Thru Favorable Budget Thru Budget 09/30/2016 09/30/2017 09/30/2017 (Unfavorable) REVENUES Charge for Services 948,000$ 653,326$ 711,000$ 797,929$ 86,929$ 112.2 % Interest 5,400 3,122 4,050 3,230 (820) 79.8 Miscellaneous - 3,000 - 145,460 145,460 (1)N/A 953,400 659,448 715,050 946,619 231,569 99.3 EXPENSES Personal services 202,236 145,670 151,677 145,936 5,741 96.2 Professional & Contractual Services 54,936 46,562 41,202 119,521 (78,319) (2)290.1 Utilities 11,740 6,910 8,805 7,000 1,805 79.5 Repair and Maintenance 10,750 13,346 8,063 11,481 (3,419) 142.4 Supplies 22,950 4,783 17,213 13,378 3,834 77.7 Communications 1,670 341 1,253 537 716 42.9 Dues, Insurance, & Training 65,510 55,177 49,133 55,092 (5,960) 112.1 Capital Expenses - - - 241,202 (241,202) (4)N/A Depreciation 365,787 257,625 274,340 274,338 2 100.0 735,579 530,414 551,684 868,485 (316,801) 118.1 OTHER FINANCING SOURCES (USES) Operating transfers in - - - - - N/A Operating transfers out & Administrative Srv Chrg 105,723 28,109 79,292 28,292 (51,000) (5)35.7 EXCESS REVENUES OVER EXPENSES 323,544$ 100,925$ 84,074$ 49,843$ (34,231)$ 59.3 % Item Explanation of items percentage received/expended less than 80% or greater than 120% and $ variance greater than $10,000. (1)Received reimbursement for Becker Park Feasibility Study (2)Payments for Becker Park Feasibility Study. (3)Purchase of a 2017 Elgin Crosswind Street Sweeper. (4)Transfer for operating transfer done at year end. Percent 09/30/2017 CITY OF CRYSTAL, MINNESOTA STATEMENT OF REVENUES AND EXPENSES - BUDGET AND ACTUAL - STORM DRAINAGE FUND (UNAUDITED) FOR THE THREE MONTHS ENDED SEPTEMBER 30, 2017 $- $100,000 $200,000 $300,000 $400,000 $500,000 $600,000 $700,000 $800,000 $900,000 January February March April May June July August September October November December Storm Drainage Sales 2016 2016 2017 -14- ATTACHMENT D Received or Expended Actual YTD Actual Variance -Based on Thru Budget Thru Favorable Budget Thru 09/30/2016 09/30/2017 09/30/2017 (Unfavorable) REVENUES Charge for Services 143,409$ 145,200$ 146,129$ 929$ 100.6 % Interest 2,464 7,200 2,925 (4,275) 40.6 Miscellaneous - - - - N/A 145,873 152,400 149,053 (3,347) 73.4 EXPENSES Utilities 74,538 86,250 75,449 10,801 87.5 Repair and Maintenance - 6,000 - 6,000 - Supplies - 12,750 - 12,750 - Miscellaneous 6,699 7,004 7,002 2 100.0 Depreciation 24,930 24,913 24,912 1 100.0 106,167 136,917 107,363 29,554 58.8 OTHER FINANCING SOURCES (USES) Operating transfers in - - - - N/A Operating transfers out 7,941 7,993 7,993 0 100.0 EXCESS REVENUES OVER (UNDER) EXPENSES 31,765$ 7,490$ 33,697$ 26,207$ 449.9 % Item Explanation of items percentage received/expended less than 80% or greater than 120% and $ variance greater than $10,000. None 09/30/2017 CITY OF CRYSTAL, MINNESOTA STATEMENT OF REVENUES AND EXPENSES - BUDGET AND ACTUAL - STREET LIGHT FUND (UNAUDITED) FOR THE THREE MONTHS ENDED SEPTEMBER 30, 2017 Percent $- $20,000 $40,000 $60,000 $80,000 $100,000 $120,000 $140,000 $160,000 $180,000 $200,000 January February March April May June July August September October November December Street Lights Sales 2016 2016 2017 -15- CITY of CRYSTAL Annual Budget2018 DRA F T TABLE of CONTENTS 2 | Page Letter of Transmittal ...........................................................................3 Organizational Chart ..........................................................................4 Governing Body & Council Priorities ...................................................5 Budget Overview ............................................................................6-7 Revenue Sources & Expenditures ....................................................8 Fund Types ....................................................................................9 Total City Budget .............................................................................10 General Fund - Revenues .............................................................11 General Fund - Expenditures ........................................................12 Special Revenue Funds .................................................................13 Capital Project Funds ....................................................................14 Debt Service Funds ..........................................................................15 Enterprise Funds .....................................................................16-17 Conclusion ..............................................................................................18 2018 City of Crystal Budget DRA F T 3 | Page LETTER OF TRANSMITTAL December 3, 2017 To the Honorable Mayor and City Council: We are pleased to submit the 2018 City Budget. The 2018 budget provides the City Council and residents with a balanced budget and a sound ﬁ nancial plan that maintains core services levels, while remaining responsive to the ﬁ nancial concerns of Crystal taxpayers. The 2018 budget reﬂ ects a 6.0% increase in the property tax levy from 2017. This increase will ensure the city can maintain service levels as the community deserves and invest in the capital needs an aging community requires. The budget is a comprehensive decision-making document based on current city operaƟ ons, services and its policies and goals. Work began on the 2018 budget in April 2017 when the City Council met to determine prioriƟ es for 2018. The City Council held two addiƟ onal work sessions to provide direcƟ on to a budget that maintains core services, is sensiƟ ve to tax impacts and of the following Council goals: 1. To create a thriving business climate 2. To develop ﬁ scally sound and stable fnancial policies and pracƟ ces 3. To create strong neighbohoods. Review and approval of the preliminary property tax levies and budget was held on September 7, 2017. A public input meeƟ ng was held on October 3, 2017 and the formal Truth in Taxa Ɵ on Public input session was held on December 5, 2017. Please contact me at 763-531-1140 or Jean McGann, Finance Director, at 763-531-1110 with any quesƟ ons. Respecƞ ully submiƩ ed, Anne Norris, City Manager DRA F T 4 | Page Organizational Chart Mayor & City Council (also serve as Crystal EDA) City Manager (EDA Executive Director) Finance Director Payroll & Benefits Utility Billing A/R & A/P Cash Mgmt. Financial Reporting Insurance Chief of Police Patrol Investigations Crime Prevention Evidence Civil Defense Records Unit Community Dev. Director (EDA Deputy Executive Director) Planning Code Enforcement Bldg. Inspections Redevelopment Env. Health Public Works Director/ City Engineer Street & Park Maint. Utility Operations Engineering Forestry Building Maint. Recereation Director Rec. Programming Building Scheduling Facility Rentals Pool / Waterslide Assist. City Manager/ HR Manager Human Resources Customer Service Assessing Communications Information Tech. Safety Programs City Clerk Licenses City Records Elections City Attorney West Metro Fire- Rescue District (joint with City of New Hope) DRA F T 5 | Page Governing Body Crystal operates as a home-rule charter city, which receives its enabling authority through the adoption of a city charter. The Crystal City Charter is the city’s constitution, which provides for the type of government and outlines functions, structure, and procedures of city government. Crystal became a charter city in 1960. The City of Crystal has a Council-Manager form of government. Under this plan, the elected members of the council set the policies for the operation of the city. The council hires a professional city manager, who is responsible for the administration of all city business. The Crystal City Council consists of seven members: a mayor and six council members who are elected to alternating four-year terms. Elections are held in November during even-numbered years. Jim Adams Mayor Term Expries: July 31, 2020 Nancy LaRoche Section I Term Expries: July 31, 2020 Olga Parsons Section II Term Expries: July 31, 2018 Elizabeth Dahl Ward 1 Term Expries: July 31, 2018 Jeff Kolb Ward 2 Term Expries: July 31, 2018 John Budziszewski Ward 3 Term Expries: July 31, 2020 Julie Deshler (Ward 4) Term Expries: July 31, 2020 To create a thriving business climate. To develop ﬁ scally sound and stable ﬁ nancial policies and practices. To create strong neighborhoods. Council Priorities DRA F T 6 | Page Budget Overview The City of Crystal has developed a comprehensive budget that encompasses City Council goals, maintenance of current levels of services and investment in infrastructure. Property taxes support approximately 67% of the annual general fund budget and in order to meet the objectives above, the budget includes a 6% property tax increase. The 2018 Budget requires $14,037,076 for operations within the General Fund to continue at existing service levels and includes the best information available regarding inﬂ ationary factors, union contract settlements and anticipated maintenance and equipment needs. Each budget year is potentially impacted by inﬂ ation, state and local policy changes as well as the economy. The remainder of the budget document provides details about property taxes, property tax rates, property tax impacts to the community and details of each budget. Property taxes are levied for the purposes of providing services to the community, supporting capital needs and providing funding for the Economic Development Authority (EDA). The following information shows the property tax levy from 2015 – 2018. 2015 2016 2017Levied 2018Proposed Increase (Decrease) % Change Generallevy 8,302,000$8,571,947$8,657,000$9,170,559$513,559$5.93 % Capitalimprovementslevy 563,153 PoliceEquipmentRevolving 134,700137,400151,90014,50010.55 PIR 261,000266,220567,430301,210113.14 MajorBuildingReplacement 563,153574,400574,400 Ͳ0.00 StreetMaintenance 160,307163,600163,600 Ͳ0.00 TotalCapitalImprovementlevy 1,119,1601,141,6201,457,330315,71027.65 EDA 239,000246,200277,200277,200Ͳ0.00 Totallevy 9,104,153$9,937,307$10,075,820$10,905,089$829,2698.23 Marketvaluebasedreferendumlevy 209,000$210,600$212,000$ Ͳ$(212,000) Ͳ100.00 9,313,153$10,147,907$10,287,820$10,905,089$617,2696.00 % DRA F T 7 | Page The following table summarizes the estimated tax impact on residential homes, based on the proposed increase in the city tax levy. As budgets are being developed, it is important to review the history of property tax levies and also reﬂ ect on how funding sources for the General Fund (the city’s operating budget) have either remained constant or have changed over the years. The graph below identiﬁ es property tax levies over the past 9 years. $8,000,000 $8,500,000 $9,000,000 $9,500,000 $10,000,000 $10,500,000 $11,000,000 2010 2011 2012 2013 2014 2015 2016 2017 2018 2017ȱMarketȱ Valueȱofȱaȱ Home Taxableȱ Marketȱ Value 2017ȱ Actual 2018ȱ Estimat ed $ȱIncreaseȱ/ȱ (decrease)ȱ %ȱIncreaseȱ/ȱ (decrease) 146,610$ȱȱȱȱȱ 122,600$ȱȱȱȱ 617$ȱȱȱȱ 654$ȱȱȱȱ 36$ȱȱȱȱȱȱȱȱȱȱȱȱȱ 6% 162,900ȱȱȱȱȱȱȱ 140,300ȱȱȱȱȱȱ 707ȱȱȱȱȱȱ 748ȱȱȱȱȱ 42ȱȱȱȱȱȱȱȱȱȱȱȱȱȱ 6% 181,000ȱȱȱȱȱȱȱ 160,100ȱȱȱȱȱȱ 806ȱȱȱȱȱȱ 854ȱȱȱȱȱ 48ȱȱȱȱȱȱȱȱȱȱȱȱȱȱ 6% 217,200ȱȱȱȱȱȱȱ 199,500ȱȱȱȱȱȱ 1,005ȱȱȱ 1,064ȱȱ 59ȱȱȱȱȱȱȱȱȱȱȱȱȱȱ 6% 260,640ȱȱȱȱȱȱȱ 246,900ȱȱȱȱȱȱ 1,243ȱȱȱ 1,317ȱȱ 73ȱȱȱȱȱȱȱȱȱȱȱȱȱȱ 6% *TheȱmedianȱhomeȱvalueȱperȱMLSȱlistingsȱisȱ$180,575.ȱȱTheȱ2018ȱ estimatedȱtaxȱrepresentsȱvaluesȱat,ȱbelowȱandȱaboveȱtheȱmedianȱvalue. DRA F T 8 | Page Expenditures General government Public safety Community development Public works Recreation 2016 Actual $2,333,780 $6,091,495 $523,035 $2,256,907 $1,448,395 2017 Budget $2,383,046 $6,357,310 $559,814 $2,451,239 $1,460,008 2018 Budget $2,291,364 $6,989,682 $571,191 $2,590,741 $1,594,098 $- $1,000,000 $2,000,000 $3,000,000 $4,000,000 $5,000,000 $6,000,000 $7,000,000 The following information provides data to better understand where the General Fund (operating budget) is funded and how these resources are allocated. Revenue Sources Taxes and special assessments Intergovernme ntal Charges and fees Other Transfers in 2016 Actual $8,100,043 $2,048,954 $1,888,580 $133,950 $332,886 2017 Budget $8,783,900 $1,973,909 $1,928,933 $79,200 $445,475 2018 Budget $9,337,559 $2,135,009 $1,978,979 $141,080 $444,449 $- $1,000,000 $2,000,000 $3,000,000 $4,000,000 $5,000,000 $6,000,000 $7,000,000 $8,000,000 $9,000,000 $10,000,000 DRA F T 9 | Page Fund Types The City of Crystal classiﬁ es funds into six types: General Fund, Special Revenue Funds, Debt Service Funds, Capital Project Funds, Enterprise Funds and Internal Service Funds. General Fund As the primary operating fund, the General Fund records all revenues and expenditures that are not assigned to another fund. The fund provides the resources to sustain the daily activities for administrative and operating expenses for general government, public safety, public works, recreation, and community development expenditures. The fund has more diverse revenue sources than other funds, including property taxes, licenses, permits, ﬁ nes and forfeits, intergovernmental revenue (grants), service charges, and investment interest. The General Fund budget can be found on pages 11–12. Special Revenue Funds Certain activities are established or designated by statute, charter or ordinance with deﬁ ned revenue sources for a speciﬁ c and restricted purpose, such as tax increment ﬁ nancing. Funds included in this fund type are Tax Increment Financing Districts and the Economic Development Fund (EDA). Tax increment was ﬁ rst received in July 2000 and the last receipt is expected in December 2025 Increments must be spent on activities that promote the development and preservation of affordable housing. The city has one Tax Increment District: District 2155/ Heather Manor Apartments and The Heathers Assisted Living Facility at 2900 - 3000 Douglas Dr. N. Information about this fund can be found on page 13. Capital Project Funds While Capital Project Funds are approved by the City Council on a project-by-project basis, the City has included the 2018 budgeted projects within this budget document. The use of these fund types are to account for the monies used for the acquisition and construction of capital projects. Capital Project Fund budgets can be found on page 14. Debt Service Funds Established to account for the payment (from special assessments and other sources) of interest and principal on long-term debt. The debt schedule and information regarding city bonds may be found on page 15. Enterprise Funds Established to account for the acquisition, operation, and maintenance of activities that are self- supporting such as city water and sewer service, storm drainage, recycling and street lights. User fees predominantly support the operations of these funds. Enterprise fund budgets as well as user rate impacts can be found on pages 16-17. DRA F T 10 | Page Total City Budget The Total city budget as shown below is the combined budgets of all parts of the organization, including the Economic Development Authority (EDA). GeneralFund EDA Capital ProjectFunds Enterprise Funds TotalBudget 2018 TotalBudget 2017 Revenue PropertyTaxesandSpecialAssessments 9,337,559$277,200$1,908,120$55,000$ 11,577,879$11,662,878$ LicensesandPermits 844,228 Ͳ Ͳ- 844,228836,256 IntergovernmentalRevenue 2,135,009 Ͳ982,2011,000,000 4,117,2103,573,909 ChargesforServices 830,751 Ͳ Ͳ7,913,926 8,744,6778,057,102 FinesandForfeits 304,000 Ͳ Ͳ- 304,000326,000 InterestIncome68,00035,000142,50043,600 289,100217,375 Miscellaneous 73,08010,00015,00095,500 193,580186,733 InterfundServices 434,049 Ͳ Ͳ- 434,049335,061 SaleofEquipmentorLand Ͳ105,00039,000- 144,000100,000 BondProceeds Ͳ Ͳ Ͳ- Ͳ3,625,697 TransfersIn 10,400 Ͳ Ͳ- 10,400110,414 TotalRevenue 14,037,076$427,200$3,086,821$9,108,026$26,659,123$29,031,425$ Appropriations GeneralGovernment 2,291,364$323,970$ Ͳ$ Ͳ$2,615,334$2,383,046$ PoliceandFire 6,989,682 Ͳ Ͳ Ͳ6,989,6826,357,310 CommunityDevelopment 571,191 Ͳ Ͳ Ͳ571,191559,814 PublicWorks 2,590,741 Ͳ Ͳ Ͳ2,590,7412,451,239 Recreation 1,594,098 Ͳ Ͳ Ͳ1,594,0981,460,008 CapitalOutlay Ͳ90,0003,008,500 Ͳ3,098,5008,453,539 EnterpriseFunds Ͳ Ͳ Ͳ8,817,3798,817,3797,015,313 EconomicDevelopmentAuthority Ͳ Ͳ Ͳ Ͳ Ͳ360,304 TotalAppropriations 14,037,076$413,970$3,008,500$8,817,379$26,276,925$29,040,573$ NetRevenueOver(Under)Appropriations (0)$13,230$78,321$290,647$382,198$(9,148)$ DRA F T 11 | Page The General Fund budget for 2018 reﬂ ects an overall increase in revenue and expenditures of 6.25%. Outlined below is a summary of budget revenues along with the major changes in 2018 revenue when compared to 2017. General Fund - Revenues 2015 2016 2017 2018 2017to2018 2017to2018 Increase Increase Actual Actual Budget Budget (Decrease) (Decrease) REVENUES Taxes Propertytaxes 8,262,652$8,004,390$8,669,000$9,170,559$501,559$5.79% Specialassessments&other 109,98195,653114,900167,00052,10045.34% Licensesandpermits 808,695773,479836,256844,2287,9720.95% Intergovernmentalrevenues 1,991,4302,048,9541,973,9092,135,009161,1008.16% Chargesforservices 673,370793,092766,677830,75164,0748.36% Fines&forfeits 309,358322,009326,000304,000(22,000) Ͳ6.75% Investmentincome 48,16775,15460,00068,0008,00013.33% Miscellaneous 33,07958,79619,20073,08053,880280.63% InterfundServices 308,213332,886335,061434,04998,98829.54% Transfersin Ͳ Ͳ110,41410,400(100,014)N/A TOTALREVENUES 12,544,945$12,504,413$13,211,417$14,037,076$825,659$6.25% Majorchangesinrevenue 825,659$ Propertytaxincreaseprojectedat5.79% 501,559 PropertytaxͲbudgetedfordelinquentcollections 52,000 PoliceͲCOPSgrant 85,000 PoliceͲDrugTaskForce30,000 PoliceͲpostboardreimbursementperlegislature 29,700 Finesandforfeitsreducedduetoanticipatedcollections (22,000) Investmentincomeincreasedduetohigherinterestratesandchangeinliquiditypolicy 8,000 MiscellaneousͲbudgetedforhistoricaldonationsandotherreimbursements 32,600 ChargesforservicesͲpawnshoptransactionfees 15,000 ChargesforservicesͲpoolpasses 9,000 ChargesforservicesͲcityprovidedservicesfornuisanceabatementactivity 8,500 Interfundservicesincreasedduetoanalysisofcostofservices 98,988 TransfersinͲreductionduetoonetimetransferin2017 (100,014) Taxforfeitsales 28,000 Miscellaneousincreases 49,326 Totalincreaseinrevenue 825,659$ DRA F T 12 | Page Outlined below is a summary of the budget expenditures along with the major changes in 2018 expenditures when compared to 2017. General Fund - Expenditures 2015 2016 2017 2018 2017to2018 2017to2018 Proposed Increase Increase Actual Actual Budget Budget (Decrease) (Decrease) EXPENDITURES Generalgovernment Mayorandcouncil 120,681$149,261$129,418$134,941$5,523$4.27% Administration 1,041,6501,185,7761,234,9871,280,06545,0783.65% Humanresources 43,94946,51952,17952,2911120.21% Assessing 227,702238,881267,224281,11513,8915.20% Legal114,49674,63497,00080,000(17,000) Ͳ17.53% Election 12,11766,70012,71559,98947,274371.80% Finance 511,886572,009589,523402,963(186,560) Ͳ31.65% Totalgeneralgovernment 2,072,4812,333,7802,383,0462,291,364(91,682) Ͳ3.85% Publicsafety Police 4,555,6634,851,8325,057,2005,629,175571,97511.31% Fire1,188,4631,239,6631,300,1101,360,50760,3974.65% 5,744,1256,091,4956,357,3106,989,682632,3729.95% CommunityDevelopment Planning/CodeEnforcement 164,78596,23083,17883,2991210.15% BuildingInspection 274,156236,348276,980284,5377,5572.73% HousingInspection 268,153179,063189,556195,2555,6993.01% Health 29,71911,39410,1008,100(2,000) Ͳ19.80% Totalcommunitydevelopment 736,814523,035559,814571,19111,3772.03% Publicworks Engineering 396,143374,945395,773401,8236,0501.53% StreetMaintenance 854,952901,641968,134969,5101,3760.14% ParkMaintenance 736,415722,790823,150950,531127,38115.47% Forestry 158,88562,36274,10080,5006,4008.64% CityBuildings 212,067195,169190,082188,377(1,705) Ͳ0.90% Totalpublicworks 2,358,4622,256,9072,451,2392,590,741139,5025.69% Recreation Recreation 731,737801,155770,361916,730146,36919.00% CommunityCenter 357,482398,547425,244405,585(19,659) Ͳ4.62% Pool 237,119248,693264,403271,7837,3802.79% 1,326,3381,448,3951,460,0081,594,098134,0909.18% OtherFinancingUses TransfersOut 519,994 Ͳ Ͳ Ͳ ͲN/A 519,994 Ͳ Ͳ Ͳ ͲN/A TOTALEXPENDITURES 12,758,213$12,653,612$13,211,417$14,037,076$825,659$6.25% Majorchangesinexpenditures 825,659$ GeneralGovernment AdministrationͲwebsiteupdate 40,000 ElectionsͲ2018iselectionyear 47,274 PublicSafety 162,000 PoliceͲLogischarges/bodycamerastorage 9,000 PoliceͲpostboardreimbursementperlegislature 29,700 FireͲincreaseinwage/benefitadjustment 59,000 PublicWorks ParksͲadditionofParksMaintenanceemployee* 80,095 Generalfundwagesandbenefits307,644 Miscellaneousincreases 90,946 Totalincreaseinexpenditures 825,659$ *TheadditionofaParksMaintenanceemployeewillbepartofadditionalbudgetworksessiondiscussions PoliceͲwagesandbenefitsfor2officersfundedwithCOPSgrantapprovedaftertheadoptionofthe2017 budget DRA F T 13 | Page Special Revenue Funds The City has one remaining Tax Increment Financing District that is set to expire on December 2025. The City also has an Economic Development Authority (EDA). The EDA has the following priorities for 2018; BLR Streetscape bidding and construction, home improvement incentive rebates for households between 80% and 120% of metro area median income and the acquisition and demolition of one blighted house for redevelopment. TIF#2155 (The Heathers) EDA Total Revenue Propertytaxes 180,000$277,200$457,200$ InvestmentIncome 15,00035,00050,000 Miscelleous Ͳ10,00010,000 Saleofland Ͳ105,000105,000 TotalRevenues 195,000$427,200$622,200$ Expenditures PersonnelServices Ͳ$250,163$250,163$ ProfessionalServices 3,30033,00036,300 ContractualServices 25,00017,00042,000 HomeImpRebateProgram 166,50018,400184,900 Utilities Ͳ1,3001,300 Miscellaneous 4,1074,107 Capitaloutlay 90,00090,000 DebtService 139,568139,568 TotalExpenditures 334,368$413,970$748,338$ NetRevenueOver(Under)Expenditures (139,368)$13,230$(126,138)$ DRA F T 14 | Page Capital Project Funds Street Maintenance Street Construction Major Building Police Revolving PIR Total REVENUES Property taxes and Special Assessments 236,600$ 345,000$ 574,400$ 151,900$ 600,220$ 1,908,120$ Intergovernmental revenue - 600,000 - 3,000 379,201 982,201 Investment income 14,000 22,000 300 36,000 70,200 142,500 Miscellaneous - - - 15,000 15,000 Sale of equipment 15,000 24,000 39,000 TOTAL REVENUES 250,600$ 967,000$ 574,700$ 220,900$ 1,073,621$ 3,086,821$ EXPENDITURES Repairs and maintenance 750,000$ -$ -$ -$ 230,000$ 980,000$ Parks - - - - 785,000 785,000 Improvements other than buildings - - - - 299,500 299,500 Machinery and equipment - - - 332,000 612,000 944,000 TOTAL EXPENDITURES 750,000$ -$ -$ 332,000$ 1,926,500$ 3,008,500$ NET CHANGES IN FUND BALANCE (499,400)$ 967,000$ 574,700$ (111,100)$ (852,879)$ 78,321$ FUND BALANCE JANUARY 1, 1,802,307 (78,448) 680,508 3,095,831 8,057,193 13,557,391 FUND BALANCE DECEMBER 31 1,302,907$ 888,552$ 1,255,208$ 2,984,731$ 7,204,314$ 13,635,712$ Outlined below are the individual Capital Project funds. While projects are budgeted for a speciﬁ c year there will be instances when a project may not be completed at year-end and roll into the following year. DRA F T 15 | Page Debt Service Funds The city sells bonds to raise revenue to ﬁ nance large projects such as street reconstruction. The city issued the ﬁ nal bond in 2017 for the 16 phases of street reconstruction. The following table shows current obligations through the audited year of 2016. Interest Authorized Balance DESCRIPTION Issue Maturity Rate and Issued 12/30/2016 General Obligation Bonds 2005B General Obligation Aquatic Center Bond 9/1/2005 2/1/2020 3.5-4.0% 765,000 General Obligation Special Assessments Bonds 2008A Special Assessment 8/1/2008 2/1/2024 3.5-4.35% 1,045,000 2009A Special Assessment 7/21/2009 2/1/1930 2.0-4.5% 2,200,000 2013B Street Reconstruction 85,940 2011A Special Assessment 7/19/2011 2/1/2027 0.5%-3.55% 1,155,000 2012A Special Assessment 7/16/2013 2/1/2028 0.5%-3.55% 2,000,000 2013A Special Assessment 6/17/2015 2/1/2029 0.5%-3.55% 2,770,000 2015A Special Assessment 7/16/2015 2/1/2031 2.5-3.00% 2,550,000 2016A Special Assessment 8/25/2016 2/1/2032 3,330,000 Total General Obligation Special Assessmetn Bonds 15,135,940 General Oblication Tax Increment Bonds 1995A Tax Increment 12/30/2015 2/1/2031 323,904 1995B Tax Increment 12/30/2015 2/1/2031 60,180 1996A Tax Increment 11/23/2010 2/1/2020 95,835 2002A Tax Increment 11/23/2010 2/1/2022 328,963 Total General Oblicationi Tax Increment Bonds 808,882 Total Outstanding Bonds 16,709,822 Date of DRA F T 16 | Page Enterprise Funds The city maintains ﬁ ve enterprise funds; water, sewer, storm drainage, recycling and street lights. For 2018, the city has approved rate increases as identiﬁ ed below for water, sewer and storm drainage. Recycling and street light rates remain consistent with 2017. In developing the 2018 water, sewer and storm drainage budgets, there are several reasons cost factors driving the need to increase rates. Water – projected infrastructure improvements and inﬂ ationary costs Sewer – MCES disposal charges rate increase of 8.5% Storm Drainage – projected infrastructure improvements and inﬂ ationary costs Operations of the utility funds in 2018 are designed to maintain the infrastructure and level of service that Crystal residents have been receiving. The staff annually updates a ﬁ ve-year utility rate study reviewing operations and capital needs. The City of Crystal receives its water supply through a Joint Water Commission (JWC) with the cities of Golden Valley and New Hope. The JWC purchases water in a contract with the City of Minneapolis. The Water, Sanitary Sewer and Strom Drainage funds plan for signiﬁ cant capital projects over the next ﬁ ve years. These are needed to replace aging infrastructure and expand the storm drainage system to areas of the city that are under served. Water Numberofunitsintier,1,000 gallonsperunit Priceper unitin2017 Priceper unitin2018 RateIncrease overprioryear Tier#1 0Ͳ30 $5.50$5.703.64% Tier#2 31Ͳ60 $5.90$6.306.78% Tier#3 over60 $6.30$6.604.76% Sewer 2017 2018 Rateincrease overprioryear ResidentialRate/quarter $55.15$61.2211.01% Seniorresidentialrate/quarter $44.67$49.5911.01% StormDrainage 2017 2018 Rateincrease overprioryear Singlefamilyhomes $16.50$18.1510.00% CommercialͲperacre $412.50$435.885.67% 2017 2018 Rateincrease overprioryear StreetLightsresidentialorcommercial $5.00$5.000.00% Rate 2017 2018 Rateincrease overprioryear Recyclingresidential $10.75$10.750.00% DRA F T Favorable 2017 2017 Percent of 2018 2018 Percent of (Unfavorable) Budget Operating Revenues Budget Operating Revenues Variance Operating revenue 2,231,005$ 100 % 2,429,179$ 100 % 198,174$ Non-operating revenue 70,300 3 66,300 3 (4,000) Total revenue 2,301,305$ 103 2,495,479$ 103 194,174$ Operating expenses 1,963,587 88 2,165,290 89 201,703 Depreciation 157,895 7 162,200 7 4,305 Capital improvements - - 395,000 16 395,000 Transfer out 140,188 6 181,604 7 41,416 Total expense 2,261,670 101 2,904,094 119 642,424 Net revenue/(expenses) 39,635$ 2 (408,615)$ (17) (448,250)$ Favorable 2017 2017 Percent of 2018 2018 Percent of (Unfavorable) Budget Operating Revenues Budget Operating Revenues Variance Operating revenue 3,421,120$ 100 % 3,589,823$ 100 % 168,703$ Non-operating revenue 235,500 7 225,500 6 (10,000) Total revenue 3,656,620$ 107 3,815,323$ 106 158,703$ - Operating expenses 2,954,618 86 % 3,029,319 84 % 74,701 Depreciation 229,784 7 232,367 6 2,583 Capital improvements - - 50,000 1 50,000 Interest 9,600 - 8,000 - (1,600) Transfer to other funds 140,188 4 181,604 5 41,416 Total expense 3,334,190 97 % 3,501,290 98 % 167,100 Net revenue/(expenses) 322,430$ 9 314,033$ 9 (8,397)$ Favorable 2017 2017 Percent 2018 2018 Percent (Unfavorable) Budget of Revenues Budget of Revenues Variance Operating revenue 936,000$ 100 % 1,179,750$ 100 % 243,750$ Non-operating revenue 17,400 2 1,016,000 86 998,600 Total revenue 953,400$ 102 2,195,750$ 186 1,242,350$ - Operating expenses 369,792 40 % 423,024 36 % 53,232 Depreciation 365,787 39 366,792 31 1,005 Capital improvements - - 1,000,000 85 1,000,000 Transfer to other funds 105,723 11 48,868 4 (56,855) Total expense 841,302 90 % 1,838,684 156 % 997,382 Net revenue/(expenses) 112,098$ 12 357,066$ 30 244,968$ Favorable 2017 2017 Percent 2018 2018 Percent (Unfavorable) Budget of Revenues Budget of Revenues Variance Operating revenue 190,000$ 6 % 190,000$ 5 % -$ Non-operating revenue 13,200 - 11,600 - (1,600) Total revenue 203,200$ 6 201,600$ 6 (1,600)$ - Operating expenses 149,339 4 % 125,145 3 % (24,194) Depreciation 33,217 1 33,218 1 1 Transfer to other funds 10,657 - 13,805 - 3,148 Total expense 193,213 6 % 172,168 5 % (21,045) Net revenue/(expenses) 9,987$ - 29,432$ 1 (22,645)$ Favorable 2017 2017 Percent 2018 2018 Percent (Unfavorable) Budget of Revenues Budget of Revenues Variance Operating Revenue 378,300$ 100 % 392,974$ 100 % 14,674$ Non-operating revenue 7,300 2 6,900 2 Total revenue 385,600$ 102 392,974$ 100 14,674$ Operating expenses 378,604 100 % 392,974 100 14,370 Transfer to other funds 6,334 2 8,168 2 1,834 Total expense 384,938 102 401,142 16,204 Net revenue/(expenses) 662$ - % (8,168)$ (2) (1,530)$ Recycling Sewer Water Storm Drainage Street Lights 17 | Page DRA F T 18 | Page Conclusion The 2018 budget responds to City Council goals and is structured to provide services at consistent levels. Activities speciﬁ c to the 2018 budget include: The addition of two police ofﬁ cers with the assistance of a federal COPS grant. Additional and updated technology including implementation of body cameras for police ofﬁ cers and updating the city’s website. State and local elections. The City Council and staff will be undertaking development of a comprehensive long range ﬁ nancial plan for capital needs including parks, buildings, infrastructure, vehicles and major equipment. This document is intended to provide an overview of the city’s programs and services. Supplemental line item budgets can be obtained from the Finance Department.