2018.08.23 Work Session Packet
4141 Douglas Drive North • Crystal, Minnesota 55422-1696
Tel: (763) 531-1000 • Fax: (763) 531-1188 • www.crystalmn.gov
Posted: Aug. 17, 2018
City Council
Work Session Agenda
Aug. 23, 2018
6:30 p.m.
Community Room
Pursuant to due call and notice given in the manner prescribed by Section 3.01 of the City Charter,
the work session of the Crystal City Council was held at ______ p.m. on Aug. 23, 2018 in the
Community Room, 4141 Douglas Dr. N., Crystal, Minnesota.
I. Attendance
Council Members Staff
____ Parsons ____ Norris
____ Adams ____ Therres
____ Budziszewski ____ Elholm
____ Dahl ____ Larson
____ Deshler ____ McGann
____ Kolb ____ Ray
____ LaRoche ____ Revering
____ Sutter
____ Serres
II. Agenda
The purpose of the work session is to discuss the following agenda items:
1. Long Term Capital Plan.
2. Financial Policies.
3. 2019-2020 budget – follow up questions. *
* 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.
CITY OF CRYSTAL, MINNESOTA
LONG TERM PLAN
Prepared on August 16, 2018
Prepared by AEM Financial Solutions, LLC.
City of Crystal, Minnesota
Long Term Plan
Table of Contents
Page No.
Compilation Disclosure 3
Introductory Section
Transmittal Letter 5
Financial Section
Schedule of Property Taxes Levied and Tax Rates 9
Schedule of Annual Fund Cash Balances 11
Outstanding Debt Schedule 13
Capital Improvement Plan
Street Capital Fund 415
Schedule of Planned Capital Outlay 2017 to 2023 14
Schedule of Projected Revenue, Expenditures and Debt 15
Police Equipment Revolving Fund 235
Schedule of Planned Capital Outlay 2017 to 2023 16
Schedule of Projected Revenue, Expenditures and Debt 17
Park Improvements 420
Schedule of Planned Capital Outlay 2017 to 2023 18
Schedule of Projected Revenue, Expenditures and Debt 19
Major Building Replacement Fund 408/625
Schedule of Planned Capital Outlay 2017 to 2023 20
Schedule of Projected Revenue, Expenditures and Debt 22
Fleet Fund 615
Schedule of Planned Capital Outlay 2017 to 2023 23
Statement of Cash Flows 24
Information Technology Fund 620
Schedule of Planned Capital Outlay 2017 to 2023 25
Statement of Cash Flows 27
Water Fund 505
Schedule of Planned Capital Outlay 2017 to 2023 28
Statement of Cash Flows 29
Sewer Fund 510
Schedule of Planned Capital Outlay 2017 to 2023 30
Statement of Cash Flows 31
Storm Water Fund 515
Schedule of Planned Capital Outlay 2017 to 2023 32
Statement of Cash Flows 33
Street Light Fund 520
Schedule of Planned Capital Outlay 2017 to 2023 34
Statement of Cash Flows 34
Selected Graphical Data from Projections 35
Appendix
Alternative A
Schedule of Property Taxes Levied and Tax Rates 38
Schedule of Annual Fund Cash Balances 40
Outstanding Debt Schedule 42
Major Building Replacement Fund 408/625
Schedule of Planned Capital Outlay 2017 to 2023 43
Schedule of Projected Revenue, Expenditures and Debt 45
Alternative B
Schedule of Property Taxes Levied and Tax Rates 48
Schedule of Annual Fund Cash Balances 50
Outstanding Debt Schedule 52
Major Building Replacement Fund 408/625
Schedule of Planned Capital Outlay 2017 to 2023 53
Schedule of Projected Revenue, Expenditures and Debt 55
2
August 16, 2018
COMPILATION DISCLOSURE
Honorable Mayor and City Council
City of Crystal
4141 Douglas Drive North
Crystal, MN 55422
We have compiled the accompanying forecasted long-term plan that includes property tax, tax rate, fund balance and
debt projections based on input from the City Council and City staff. This projection incorporates estimates through
December 31, 2023 for all presented funds. This forecast was compiled in accordance with attestation standards
established by the American Institute of Certified Public Accountants.
A compilation is limited to presenting in the form of forecast information that is the representation of management and
does not include evaluation of the support for the assumptions underlying the forecast. We have not examined the
forecast and, accordingly, do not express an opinion or any other form of assurance on the accompanying statements or
assumptions. Furthermore, there will usually be differences between the forecasted and actual results because events
and circumstances frequently do not occur as expected, and those differences may be material. We have no responsibility
to update this report for events and circumstances occurring after the date of this report.
Sincerely,
AEM FINANCIAL SOLUTIONS, LLC
3
INTRODUCTORY SECTION
CITY OF CRYSTAL, MINNESOTA
LONG TERM PLAN
4
August 16, 2018
Honorable Mayor and City Council
City of Crystal
4141 Douglas Drive North
Crystal, MN 55422
Introduction
As discussed in prior communications to the City Council, we have been preparing a long term plan for the City that is
intended to give a big picture view of the status now and five years from now. We have measured and projected
operations, capital and debt for the City based on assumptions made by management. The City’s assumptions made are
as follows:
Assumptions
The following assumptions have been used to calculate the projections in this report:
Rates
Interest Earnings 1.00%
Governmental Fund Revenue Growth 3.00%
Governmental Fund Expenditure Growth 3.00%
Enterprise Fund Revenue Growth(1)5.00%
Enterprise Fund Expense Growth(1)5.00%
General Fund Levy Growth 3.00%
EDA Fund Levy Growth 2.00%
Population Growth 0.49%
Median Home Value Growth 5.00%
Tax Capacity Growth Rate (Including Fiscal Disparities)5.00%
Governmental Fund Debt Interest Rate 3.00%
Governmental Fund Debt Term 15
(1) Specific enterprise fund assumptions are noted in the Financial Section.
5
Assumptions with Future Action
• Park Improvement Fund 420 includes a $3,000,000 project for Becker Park. Funding sources that are anticipated
for this project include $1,200,000 from the EDA Fund and $500,000 in grants. Another $120,000 of grant
revenue is assumed in 2019 related to the Welcome Park project for the hockey rink, rink lights and playground
equipment. Staff will continue to pursue these funding applications.
• Fleet Fund 615 will require an operations and replacement cost analysis in 2019 to establish the future charge out
rates for the Fleet Fund. Interfund service revenue was excluded from the analysis at this time. In 2019, the
future replacement charge out should be implemented to provide adequate resources for ongoing Fleet capital
needs
• Information Technology (IT) Fund 620 was established as an internal service fund to provide for the ongoing
operations and replacement of the City’s IT services. In 2019, the operations charge out rate was implemented.
In 2019, the future replacement charge out should be implemented to provide adequate resources for ongoing IT
capital needs.
• Storm Water Fund 9304 includes several grant assumptions for major infrastructure projects. Anticipated funding
sources include: watershed, Met Council, MNDNR and other resources. If these grants are not secured, financing
for these projects may need to be considered.
• The City is currently engaged with AEM Financial Solutions for the analysis of utility rates for water and sewer. A
five percent growth in annual revenues and expenses was assumed for the purposes of this report. These
estimates are subject to change upon completion of the utility rate analysis.
The cash balances in the Sewer fund decrease over the life of this Plan while the Water and Storm Sewer project
minimal increases. The utility rate analysis should address these shortfalls and appropriate rate adjustment
should be made to ensure adequate resources are available for ongoing maintenance and capital replacement.
Alternative Options for Consideration
• Appendix A and B provide alternatives for the contemplated expansion of the police department facilities.
o Alternative A - Major Building Replacement Fund 625 includes a $10,000,000 facility project in 2020 for
the contemplated expansion of the police department facilities. Based on available fund balance,
$6,000,000 of debt issuance is anticipated for this project. A 15 year term and 3.00% interest rate has
been assumed in the long-term plan. The internal charges from the building fund have been set to cover
the annual operations and maintenance cost of City facilities. The annual property tax levy for major
building replacement is intended to support future capital facility needs.
o Alternative B - Building Fund 625 includes an increase in the property tax levy beginning in 2019. 2019
reflects a 2% increase based on the Building Fund property tax levy. 2020 – 2023 reflects a 5% property
tax increase based on the overall property tax levy. This alternative allows for the contemplated
expansion of the police department facilities to begin in 2023. This alternative is based on the pay as you
go methodology.
6
Key Highlights
•At December 31, 2017 the General fund had a 51.7 percent operating reserve. The Minnesota Office of the State
Auditor defines an adequate reserve as 35-50 percent of the General fund expenditures. A 45 percent fund
balance reserve has been assumed in the long-term plan. The projected General Fund reserve balance is
anticipated to remain at or above 45 percent rage throughout the life of this Plan. We anticipate the General fund
levy will grow by an average of 3 percent to maintain the desired reserve level.
•The tax levy is projected to increase from $11.3 million (2019 proposed) to $13.4 million over the duration of this
plan based on the projected increases for the general fund capital needs. The levy increase will result in an
decrease in the projected tax rate, ranging from 48.2 percent (2019 proposed) to 47.0 percent throughout the life
of this Plan.
o Tax capacity is assumed to grow at a rate of 5 percent during the duration of this Plan. A growth in tax
rate in excess of these projections may result in lower tax rates in future years.
o The future captured tax increment capacity has not been analyzed for this report and is assumed to
remain the same as it was in 2018.
•The annual tax amount for the Median Home is projected to increase from $850 (2019 proposed) to $1,046 over
the duration of this Plan.
•Total debt outstanding is projected to decrease from $18.6 million (2017 actual) to $9.5 million over the duration of
this Plan. As a result, the debt per capita will fall from a $814 (2017 actual) per household to an estimated $403
over the duration of this Plan.
•The total cash position of the City is projected to decrease from $44.6 million (2017 actual) to $33.9 million over
the duration of this Plan. Several funds were not analyzed for the purposes of this report and include a 1 percent
interest rate earnings assumption the cash balance. These funds include: TIF Districts, Special Projects, Cable TV
Equipment, Recycling, Self Insurance and Hennepin Recycling Group. The actual cash results for the years 2018
- 2023 will vary from the results estimated in this report.
7
FINANCIAL SECTION
CITY OF CRYSTAL, MINNESOTA
LONG TERM PLAN
8
City of Crystal, Minnesota
Schedule of Property Taxes Levied and Tax Rates
For the Years Ended December 31, 2017 and 2018 (Actual) and 2019 to 2023 (Estimated)
2017 2018 2019 2020 2021 2022 2023
Actual Actual Estimated Estimated Estimated Estimated Estimated
Amounts Amounts Amounts Amounts Amounts Amounts Amounts
Property Taxes Levied for General Purposes
100 General 8,657,000$ 9,436,779$ 9,641,249$ 10,266,584$ 10,574,582$ 10,891,819$ 11,218,574$
220 EDA/HRA Funds 277,200 277,200 282,744 288,399 294,167 300,050 306,051
415 Street Capital 163,600 163,600 110,144 116,950 121,628 126,493 131,553
235 PERF Fund 137,400 151,900 154,938 158,037 161,197 164,421 167,710
405 PIR Fund 266,220 301,210 - - - - -
408 Building Fund 574,400 574,400 585,888 597,606 609,558 621,749 634,184
420 Park Improvements - - 248,310 358,914 476,359 593,804 713,804
615 Fleet - - 85,680 86,537 87,402 88,276 89,159
620 Information Technology - - 159,179 159,902 161,501 163,116 164,747
Subtotal 10,075,820 10,905,089 11,268,132 12,032,929 12,486,394 12,949,729 13,425,782
Property Taxes Levied for Debt Service
327/420 2005 Pool Bonds 212,000 - - - - - -
Subtotal 212,000 - - - - - -
Total Taxes Levied 10,287,820 10,905,089 11,268,132 12,032,929 12,486,394 12,949,729 13,425,782
Less: Value of Market Value Levies (489,200) (277,200) (282,744) (288,399) (294,167) (300,050) (306,051)
Less: Distribution from fiscal disparities (2,267,618) (2,186,657) (2,295,990) (2,410,789) (2,531,329) (2,657,895) (2,790,790)
City Net Levy 7,531,002$ 8,441,232$ 8,689,398$ 9,333,740$ 9,660,899$ 9,991,784$ 10,328,941$
Tax Capacity
Personal and Real Estate 16,716,393$ 18,459,975$ 19,382,974$ 20,352,122$ 21,369,729$ 22,438,215$ 23,560,126$
Other assumed net growth factors - - - - - - -
Less: Contribution to fiscal disparities (1,082,015) (1,079,088) (1,133,042) (1,189,695) (1,249,179) (1,311,638) (1,377,220)
Less: Tax Increment (248,944) (212,599) (212,599) (212,599) (212,599) (212,599) (212,599)
Adjusted net tax capacity 15,385,434$ 17,168,288$ 18,037,332$ 18,949,829$ 19,907,950$ 20,913,978$ 21,970,307$
9
City of Crystal, Minnesota
Schedule of Property Taxes Levied and Tax Rates (Continued)
For the Years Ended December 31, 2017 and 2018 (Actual) and 2019 to 2023 (Estimated)
2017 2018 2019 2020 2021 2022 2023
Actual Actual Estimated Estimated Estimated Estimated Estimated
Amounts Amounts Amounts Amounts Amounts Amounts Amounts
Tax Rates
General 42.33%43.66%42.28%43.06%42.09%41.14%40.20%
Capital levies 5.58%5.51%5.20%5.53%5.80%6.02%6.22%
Scheduled debt levies 1.04%0.00%0.00%0.00%0.00%0.00%0.00%
Total City Levy Tax Rate 48.949%49.168%48.175%49.255%48.528%47.776%47.013%
Total EDA Tax Rate 1.385%1.274%1.250%1.225%1.201%1.177%1.152%
Population 22,855 22,967 23,080 23,193 23,307 23,307 23,421
Taxes per Capita 450$ 475$ 488$ 519$ 536$ 556$ 573$
Median Home Value (Jan 2)166,000$ 182,000$ 196,000$ 205,800$ 216,090$ 226,895$ 238,239$
Median Home Taxes (from city)703 792 850 922 962 1,004 1,046
% change from prior year $'s N/A 13%7%8%4%9%9%
Tax Levy ($)
General 8,657,000$ 9,436,779$ 9,641,249$ 10,266,584$ 10,574,582$ 10,891,819$ 11,218,574$
Capital 1,141,620 1,191,110 1,184,960 1,318,044 1,456,145 1,594,744 1,736,410
Economic Development Authority 277,200 277,200 282,744 288,399 294,167 300,050 306,051
Debt service 212,000 - - - - - -
Tax Levy (%)
General 84%87%86%85%85%84%84%
Capital 11%11%11%11%12%12%13%
Economic Development Authority 3%3%3%2%2%2%2%
Debt service 2%0%0%0%0%0%0%
10
City of Crystal, Minnesota
Schedule of Annual Fund Cash Balances
For the Years Ended December 31, 2016 and 2017 (Actual) and 2018 to 2023 (Estimated)
2016 2017 2018 2019 2020 2021 2022 2023
Actual Actual Estimated Estimated Estimated Estimated Estimated Estimated
Amounts Amounts Amounts Amounts Amounts Amounts Amounts Amounts Trend
Government-Type
General Operations
101 General 7,426,395$ 7,380,956$ 7,429,826$ 7,429,826$ 7,429,825$ 6,941,339$ 5,935,057$ 4,380,352$
Special Revenue
220 Economic Development Authority 3,758,615 3,190,635 3,203,865 2,174,657 2,091,753 2,003,477 1,909,612 1,809,930
*206-210 TIF Districts Special Revenue 1,795,278 1,817,122 1,835,293 1,853,646 1,872,183 1,890,904 1,909,813 1,928,912
*240-245 Special Projects 86,462 98,913 99,902 99,903 99,904 99,905 99,906 99,907
Subtotal 5,640,355 5,106,670 5,139,060 4,128,206 4,063,840 3,994,287 3,919,332 3,838,749
Debt Service
329-336 Debt Service 5,731,734 5,282,301 5,219,104 5,164,999 5,119,733 5,077,749 5,044,073 5,044,073
Capital Projects
405 Capital Improvement Revolving 8,440,754 8,229,232 - - - - - -
415 Street Reconstruction 2,521,416 6,049,965 7,643,645 6,765,226 6,143,478 5,562,380 4,723,994 3,847,335
409 Fire Equipment Revolving 585,190 - - - - - - -
235 Police Equipment Revolving 3,109,809 3,080,805 2,937,313 2,889,424 2,855,655 2,834,509 2,828,076 2,787,866
410 Street Maintenance 1,587,990 1,696,364 - - - - - -
420 Park Improvement - 210,780 1,739,617 807,323 663,311 615,303 659,260 803,656
*404 Cable TV Equipment 69,757 108,477 109,562 110,657 111,764 112,882 114,010 115,151
Subtotal 16,314,916 19,375,623 12,430,137 10,572,631 9,774,208 9,125,074 8,325,340 7,554,009
Total - Governmental-type Funds 35,113,400 37,145,550 30,218,128 27,295,663 26,387,605 25,138,448 23,223,802 20,817,183
Internal Service
620 Information Technology - - 243,971 99,943 (61,393) (201,568) (225,555) (343,627)
408/625 Building 138,213 644,615 2,840,685 3,462,217 4,152,681 5,041,501 6,110,399 7,030,420
615 Fleet - - 2,376,993 1,833,443 1,298,314 969,699 536,672 171,198
*605 Self Insurance 960,549 898,302 907,285 916,358 925,521 934,777 944,124 953,566
Total - Internal Service-type Funds 1,098,762 1,542,917 6,368,933 6,311,961 6,315,123 6,744,409 7,365,641 7,811,557
11
City of Crystal, Minnesota
Schedule of Annual Fund Cash Balances (Continued)
For the Years Ended December 31, 2016 and 2017 (Actual) and 2018 to 2023 (Estimated)
2016 2017 2018 2019 2020 2021 2022 2023
Actual Actual Estimated Estimated Estimated Estimated Estimated Estimated
Amounts Amounts Amounts Amounts Amounts Amounts Amounts Amounts Trend
Business-Type
Enterprise Funds
505 Water 438,599$ 953,039$ 1,472,446$ 1,403,899$ 1,416,770$ 1,420,711$ 1,537,371$ 1,619,699$
510 Sewer 2,312,443 2,121,076 1,985,036 1,652,259 1,279,982 965,541 660,095 364,338
515 Storm Drainage 379,568 787,914 1,384,970 592,250 1,198,320 1,092,958 1,220,675 1,685,509
520 Street Lights 387,731 488,501 586,061 643,390 724,559 810,026 900,009 (5,265)
*525 Recycling 109,314 120,021 121,221 122,433 123,658 124,894 126,143 127,405
Total - Business-type Funds 3,627,655 4,470,551 5,549,734 4,414,232 4,743,288 4,414,131 4,444,293 3,791,687
Agency Fund
*250 Hennepin Recycling Group 1,704,244 1,399,536 1,413,531 1,427,667 1,441,943 1,456,363 1,470,926 1,485,636
Grand Total - City 41,544,061$ 44,558,554$ 43,550,326$ 39,449,522$ 38,887,960$ 37,753,351$ 36,504,662$ 33,906,062$
*Annual growth in fund balance of 1% assumed
Trend indicator
Adequate for reserve levels
Adequate as of 2016 but decreasing balances, watch
Below targeted reserve levels and should have a plan to address
The fund has events in the future that need addressing now
12
2016 2017 2018 2019 2020 2021 2022 2023
Original Issue Maturity Interest Actual Actual Estimated Estimated Estimated Estimated Estimated Estimated
Fund Issue Issue Date Date Rate Balance Balance Balance Balance Balance Balance Balance Balance
Government-Type
General Obligation Bonds
327 2005B General Obligation Aquatic Center Bond 2,395,000$ 9/1/2005 2/1/2020 3.50-4.00%%765,000$ -$ -$ -$ -$ -$ -$ -$
326 2005A Special Assessment 1,440,000 9/14/2005 2/1/2021 3.50-4.00%- - - - - - - -
328 2006A Special Assessment 1,855,000 6/29/2006 2/1/2022 3.75-4.20%- - - - - - - -
329 2008A Special Assessment 2,190,000 8/1/2008 2/1/2024 3.50-4.35%1,045,000 900,000 760,000 625,000 495,000 365,000 240,000 120,000
330 2009A Special Assessment 3,360,000 7/21/2009 2/1/2030 2.00-4.50%2,200,000 2,020,000 1,845,000 1,675,000 1,505,000 1,340,000 1,180,000 1,020,000
331 2013B Street Reconstruction 85,940 85,940 - - - - - - -
332 2011A Special Assessment 1,705,000 7/19/2011 2/1/2027 0.50-3.55%1,155,000 1,030,000 910,000 795,000 685,000 575,000 470,000 370,000
333 2012A Special Assessment 2,635,000 7/16/2013 2/1/2028 0.50-3.55%2,000,000 1,805,000 1,615,000 1,430,000 1,250,000 1,080,000 915,000 750,000
334 2013A Special Assessment 3,235,000 6/17/2015 2/1/2029 0.50-3.55%2,770,000 2,525,000 2,285,000 2,050,000 1,825,000 1,605,000 1,390,000 1,180,000
335 2015A Special Assessment 2,550,000 7/16/2015 2/1/2031 2.50-3.00%2,550,000 2,325,000 2,130,000 1,940,000 1,755,000 1,575,000 1,400,000 1,230,000
336 2016A Special Assessment 3,330,000 8/25/2016 2/1/2032 2.00-2.50%3,330,000 3,330,000 3,050,000 2,795,000 2,550,000 2,310,000 2,075,000 1,845,000
337 2017A Special Assessment 4,665,000 9/14/2017 2/1/2033 2.00-3.00%- 4,665,000 4,665,000 4,250,000 3,920,000 3,595,000 3,280,000 2,965,000
Total G.O. Tax Bonds 29,445,940 15,900,940 18,600,000 17,260,000 15,560,000 13,985,000 12,445,000 10,950,000 9,480,000
Total Government-Type 29,445,940$ 15,900,940$ 18,600,000$ 17,260,000$ 15,560,000$ 13,985,000$ 12,445,000$ 10,950,000$ 9,480,000$
Population 22,855 22,855 22,967 23,080 23,193 23,307 23,421 23,536
Debt Per Capita - total 696$ 814$ 752$ 674$ 603$ 534$ 468$ 403$
For the Years Ended December 31, 2016 and 2017 (Actual) and 2018 to 2023 (Estimated)
Outstanding Debt Schedule
City of Crystal, Minnesota
13
2018 2019 2020 2021 2022 2023
Year to Estimated Estimated Estimated Estimated Estimated Estimated
Department Replace Item Cost Amounts Amounts Amounts Amounts Amounts Amounts
Public works 2018 Flashing yellow arrows at county signals 32,000$ 32,000$ -$ -$ -$ -$ -$
Public works 2018 Phase 16 Skyway remaining costs 311,747 311,747 - - - - -
Public works 2019 Sidewalk shaving (trip hazard removal)20,000 - 20,000 - - - -
Public works 2019 Misc concrete work 55,000 - 55,000 - - - -
Public works 2019 Winpark Drive Reconstruction 400,000 - 400,000 - - - -
Public works 2019 Contract mill and overlay 500,000 - 500,000 - - - -
Public works 2019 Crack sealing 10,000 - 10,000 - - - -
Public works 2019 Flashing yellow arrows 20,000 - 20,000 - - - -
Public works 2019 ADA Ped Ramp replacements 60,000 - 60,000 - - - -
Public works 2020 In house mill and overlay 52,500 - - 52,500 - - -
Public works 2020 Sidewalk shaving (trip hazard removal)20,000 - - 20,000 - - -
Public works 2020 Misc concrete work 56,650 - - 56,650 - - -
Public works 2020 Contract mill and overlay 525,000 - - 525,000 - - -
Public works 2020 Crack sealing 10,000 - - 10,000 - - -
Public works 2020 Flashing yellow arrows 26,000 - - 26,000 - - -
Public works 2020 Replace retaining wall Douglas and 36th 75,000 - - 75,000 - - -
Public works 2020 ADA Ped Ramp replacements 41,200 - - 41,200 - - -
Public works 2021 In house mill and overlay 55,125 - - - 55,125 - -
Public works 2021 Sidewalk shaving (trip hazard removal)20,000 - - - 20,000 - -
Public works 2021 Misc concrete work 58,350 - - - 58,350 - -
Public works 2021 Contract mill and overlay 551,250 - - - 551,250 - -
Public works 2021 Crack sealing 10,000 - - - 10,000 - -
Public works 2021 Flashing yellow arrows 27,000 - - - 27,000 - -
Public works 2021 ADA Ped Ramp replacements 42,436 - - - 42,436 - -
Public works 2022 In house mill and overlay 57,881 - - - - 57,881 -
Public works 2022 Sidewalk shaving (trip hazard removal)20,000 - - - - 20,000 -
Public works 2022 Misc concrete work 60,100 - - - - 60,100 -
Public works 2022 Contract mill and overlay 578,813 - - - - 578,813 -
Public works 2022 Crack sealing 10,000 - - - - 10,000 -
Public works 2022 Construct sidewalk on W. Broadway gap 250,000 - - - - 250,000 -
Public works 2022 ADA Ped Ramp replacements 43,709 - - - - 43,709 -
Public works 2023 In house mill and overlay 60,775 - - - - - 60,775
Public works 2023 Sidewalk shaving (trip hazard removal)20,000 - - - - - 20,000
Public works 2023 Misc concrete work 61,903 - - - - - 61,903
Public works 2023 Contract mill and overlay 607,753 - - - - - 607,753
Public works 2023 Crack sealing 10,000 - - - - - 10,000
Public works 2023 Regent Ave mini-roundabout 250,000 - - - - - 250,000
Public works 2023 ADA Ped Ramp replacements 45,020 - - - - - 45,020
343,747$ 1,065,000$ 806,350$ 764,161$ 1,020,503$ 1,055,452$
Schedule of Planned Capital Outlay 2017 to 2023
Capital Improvement Plan - Street Capital Fund 415
City of Crystal, Minnesota
14
2018 2019 2020 2021 2022 2023
Estimated Estimated Estimated Estimated Estimated Estimated
Revenues
Property taxes (4% increase, annually, beginning in 2021)163,600$ 110,144$ 116,950$ 121,628$ 126,493$ 131,553$
Interest on investments 77,463 76,436 67,652 61,435 55,624 47,240
Franchise fees - - - - - -
Miscellaneous - - - - - -
Total Revenues 241,063 186,580 184,602 183,063 182,117 178,793
Expenditures
Capital outlay
Public works 343,747 1,065,000 806,350 764,161 1,020,503 1,055,452
Total Expenditures 343,747 1,065,000 806,350 764,161 1,020,503 1,055,452
Excess (Deficiency) of Revenues
Over (Under) Expenditures (102,684) (878,420) (621,748) (581,098) (838,386) (876,659)
Other Financing Sources
Transfers in - - - - - -
Intergovernmental revenue (Municipal State Aid - MSA)- - - - - -
Bond proceeds - - - - - -
Sale of Fixed Asset - - - - - -
Total Other Financing Sources - - - - - -
Net Change in Fund Balances (102,684) (878,420) (621,748) (581,098) (838,386) (876,659)
Fund Balances, January 1 7,746,329 7,643,645 6,765,226 6,143,478 5,562,380 4,723,994
Fund Balances, December 31 7,643,645$ 6,765,226$ 6,143,478$ 5,562,380$ 4,723,994$ 3,847,335$
Capital Project Fund Projected Activity
Schedule of Projected Revenue, Expenditures and Debt
City of Crystal, Minnesota
Capital Improvement Plan - Street Capital Fund 415
15
2018 2019 2020 2021 2022 2023
Year to Estimated Estimated Estimated Estimated Estimated Estimated
Department Replace Item Cost Amounts Amounts Amounts Amounts Amounts Amounts
Police 2018 2014 Ford Interceptor utility 47,000$ 47,000$ -$ -$ -$ -$ -$
Police 2018 2014 Ford Interceptor utility 47,000 47,000 - - - - -
Police 2018 Don't currently have a #216 47,000 47,000 - - - - -
Police 2018 Mobile radios ($5,000 each)17,100 17,100 - - - - -
Police 2018 Mobile data tablets ($4,000 each)12,000 12,000 - - - - -
Police 2018 X-26 tasers ($1,900 each)1,900 1,900 - - - - -
Police 2018 Body cameras 25,000 25,000 - - - - -
Police 2018 Portable radios ($3,000 each)90,000 90,000 - - - - -
Police 2018 Bulletproof vests - mass replacement 2,000 2,000 - - - - -
Police 2018 Tactical vests ($3,600 each)7,200 7,200 - - - - -
Police 2018 F.A.T.S (Firearms Tactical Simulator)45,000 45,000 - - - - -
Police 2019 2014 Ford Interceptor utility 35,000 - 35,000 - - - -
Police 2019 2015 Ford F150 crew cab 50,000 - 50,000 - - - -
Police 2019 2010 Ford Crown Victoria 50,000 - 50,000 - - - -
Police 2019 2013 Ford Interceptor sedan 5,000 - 5,000 - - - -
Police 2019 2009 Chevy Impala, blue unmarked 35,000 - 35,000 - - - -
Police 2019 Mobile data tablets ($4,000 each)8,000 - 8,000 - - - -
Police 2019 Handgun Replacement 45,000 - 45,000 - - - -
Police 2019 Rifle replacment with MP5's/Replace Sniper Rifle 7,000 - 7,000 - - - -
Police 2019 Bulletproof vests - mass replacement 5,000 - 5,000 - - - -
Police 2019 Tactical vests ($3,600 each)7,200 - 7,200 - - - -
Police 2020 2011 Ford Crown Victoria 50,000 - - 50,000 - - -
Police 2020 2016 Ford Interceptor utility 50,000 - - 50,000 - - -
Police 2020 2016 Ford Interceptor utility 50,000 - - 50,000 - - -
Police 2020 2012 Dodge Journey, gray unmarked 35,000 - - 35,000 - - -
Police 2020 Mobile data tablets ($4,000 each)12,000 - - 12,000 - - -
Police 2020 Rifle replacment with MP5's/Replace Sniper Rifle 16,500 - - 16,500 - - -
Police 2020 Bulletproof vests - mass replacement 15,000 - - 15,000 - - -
Police 2020 Tactical vests ($3,600 each)7,200 - - 7,200 - - -
Police 2021 2013 Ford Interceptor utility 49,000 - - - 49,000 - -
Police 2021 2007 Chevy Impala, blue unmarked 30,000 - - - 30,000 - -
Police 2021 2013 Ford Interceptor utility 49,000 - - - 49,000 - -
Police 2021 2009 Ford Crown Victoria, gray unmarked 35,000 - - - 35,000 - -
Police 2021 2010 Ford Crown Victoria 49,000 - - - 49,000 - -
Police 2021 Mobile data tablets ($4,000 each)12,000 - - - 12,000 - -
Police 2021 X-26 tasers ($1,900 each)1,900 - - - 1,900 - -
Police 2022 2014 Ford Interceptor utility 52,000 - - - - 52,000 -
Police 2022 2014 Ford Interceptor utility 52,000 - - - - 52,000 -
Police 2022 Don't currently have a #216 52,000 - - - - 52,000 -
Police 2022 Mobile data tablets ($4,000 each)12,000 - - - - 12,000 -
Police 2022 Mobile radar/lidar replacement ($4,000 each)12,000 - - - - 12,000 -
Police 2022 In-squad digital video equipment ($6,000 each)21,000 - - - - 21,000 -
Police 2022 Bulletproof vests - mass replacement 6,000 - - - - 6,000 -
Police 2022 Tactical vests ($3,600 each)7,200 - - - - 7,200 -
Police 2023 2007 Chevy Impala, blue unmarked 40,000 - - - - - 40,000
Police 2023 2015 Ford F150 crew cab 52,000 - - - - - 52,000
Police 2023 2009 Chevy Impala, brown unmarked 40,000 - - - - - 40,000
Police 2023 2010 Ford Crown Victoria 52,000 - - - - - 52,000
Police 2023 Mobile data tablets ($4,000 each)12,000 - - - - - 12,000
Police 2023 In-squad digital video equipment ($6,000 each)14,000 - - - - - 14,000
Police 2023 Body cameras 30,000 - - - - - 30,000
Police 2023 Bulletproof vests - mass replacement 4,000 - - - - - 4,000
Police 2023 Tactical vests ($3,600 each)7,200 - - - - - 7,200
341,200$ 247,200$ 235,700$ 225,900$ 214,200$ 251,200$
Schedule of Planned Capital Outlay 2018 to 2023
Capital Improvement Plan - Police Equipment Revolving Fund 235
City of Crystal, Minnesota
16
2018 2019 2020 2021 2022 2023
Estimated Estimated Estimated Estimated Estimated Estimated
Revenues
Property taxes (2% increase, anually, beginning in 2019)151,900$ 154,938$ 158,037$ 161,197$ 164,421$ 167,710$
Interest on investments 30,808 29,373 28,894 28,557 28,345 28,281
Miscellaneous - - - - - -
Total Revenues 182,708 184,311 186,931 189,754 192,767 195,991
Expenditures
Capital outlay
Public safety 341,200 247,200 235,700 225,900 214,200 251,200
Total Expenditures 341,200 247,200 235,700 225,900 214,200 251,200
Excess (Deficiency) of Revenues
Over (Under) Expenditures (158,492) (62,889) (48,769) (36,146) (21,433) (55,209)
Other Financing Sources
Transfer in - - - - - -
Bond proceeds - - - - - -
Sale of Fixed Asset 15,000 15,000 15,000 15,000 15,000 15,000
Transfers out - - - - - -
Total Other Financing Sources 15,000 15,000 15,000 15,000 15,000 15,000
Net Change in Fund Balances (143,492) (47,889) (33,769) (21,146) (6,433) (40,209)
Fund Balances, January 1 3,080,805 2,937,313 2,889,424 2,855,655 2,834,509 2,828,076
Fund Balances, December 31 2,937,313$ 2,889,424$ 2,855,655$ 2,834,509$ 2,828,076$ 2,787,866$
Capital Project Fund Projected Activity
Schedule of Projected Revenue, Expenditures and Debt
Capital Improvement Plan - Police Equipment Revolving Fund 235
City of Crystal, Minnesota
17
2018 2019 2020 2021 2022 2023
Year to Estimated Estimated Estimated Estimated Estimated Estimated
Department Replace Item Cost Amounts Amounts Amounts Amounts Amounts Amounts
Recreation 2018 New Park Name Signage 10,000$ 10,000$ -$ -$ -$ -$ -$
Recreation 2018 Replace trash receptacle and recycling bins (HRG grant)2,500 2,500 - - - - -
Recreation 2018 Welcome Park 738,000 738,000 - - - - -
Recreation 2019 New Park Name Signage 10,000 - 10,000 - - - -
Recreation 2019 ALL Pavement (Parking @ Trails)25,000 - 25,000 - - - -
Recreation 2019 DP Becker 1,200,000 - 1,200,000 - - - -
Recreation 2019 DP Becker 1,800,000 - 1,800,000 - - - -
Recreation 2019 Lounge Chairs 18,000 - 18,000 - - - -
Recreation 2019 Chair / Table Replacement 12,000 - 12,000 - - - -
Recreation 2019 Staging & Risers 10,000 - 10,000 - - - -
Recreation 2020 New Park Name Signage 10,000 - - 10,000 - - -
Recreation 2020 ALL Pavement (Parking @ Trails)25,000 - - 25,000 - - -
Recreation 2020 NP Fair Play Area (1999)160,000 - - 160,000 - - -
Recreation 2020 CP Welcome Play Area (1997)275,000 - - 275,000 - - -
Recreation 2020 NP Shelter - Broadway 65,000 - - 65,000 - - -
Recreation 2021 New Park Name Signage 10,000 - - - 10,000 - -
Recreation 2021 ALL Pavement (Parking @ Trails)25,000 - - - 25,000 - -
Recreation 2021 CP Valley Place PA (2001)275,000 - - - 275,000 - -
Recreation 2021 NP Yunkers (2001)150,000 - - - 150,000 - -
Recreation 2021 NP Shelter - Crystal Highlands 65,000 - - - 65,000 - -
Recreation 2021 CP Dog Park - Bassett Creek 30,000 - - - 30,000 - -
Recreation 2022 ALL Pavement (Parking @ Trails)25,000 - - - - 25,000 -
Recreation 2022 CP Dog Park - Bassett Creek 30,000 - - - - 30,000 -
Recreation 2022 CP Soccer Field - North Lions 525,000 - - - - 525,000 -
Recreation 2023 ALL Pavement (Parking @ Trails)25,000 - - - - - 25,000
Recreation 2023 CP Re-Surface Courts - North Lions 50,000 - - - - - 50,000
Recreation 2023 NP Broadway (1999)150,000 - - - - - 150,000
Recreation 2023 CP Park Building - Bassett Creek 375,000 - - - - - 375,000
Recreation 2024 ALL Pavement (Parking @ Trails)25,000 - - - - - -
Recreation 2024 CP Park Building - Bassett Creek 525,000 - - - - - -
Recreation 2024 CP Ped Bridge - Bassett Creek 75,000 - - - - - -
750,500$ 3,075,000$ 535,000$ 555,000$ 580,000$ 600,000$
City of Crystal, Minnesota
Capital Improvement Plan - Park Improvements 420
Schedule of Planned Capital Outlay 2018 to 2023
18
2018 2019 2020 2021 2022 2023
Estimated Estimated Estimated Estimated Estimated Estimated
Revenues
Property taxes (1% overall levy increase, annually, beginning in 2020)-$ 248,310$ 358,914$ 476,359$ 593,804$ 713,804$
Interest on investments - 17,396 8,073 6,633 6,153 6,593
Intergovernmental revenue (HCYSPG grants)- 620,000 - - - -
Miscellaneous - - - - - -
Total Revenues - 885,706 366,987 482,992 599,957 720,397
Expenditures
Capital outlay
General government 750,500 3,075,000 535,000 555,000 580,000 600,000
Total Expenditures 750,500 3,075,000 535,000 555,000 580,000 600,000
Excess (Deficiency) of Revenues
Over (Under) Expenditures (750,500) (2,189,294) (168,013) (72,008) 19,957 120,397
Other Financing Sources
Transfers in
EDA - 1,200,000 - - - -
PIR 2,145,117 - - - - -
Sale of fixed assets 345,000 57,000 24,000 24,000 24,000 24,000
Transfers out - - - - - -
Total Other Financing Sources 2,490,117 1,257,000 24,000 24,000 24,000 24,000
Net Change in Fund Balances 1,739,617 (932,294) (144,013) (48,008) 43,957 144,397
Fund Balances, January 1 - 1,739,617 807,323 663,311 615,303 659,260
Fund Balances, December 31 1,739,617$ 807,323$ 663,311$ 615,303$ 659,260$ 803,656$
City of Crystal, Minnesota
Capital Improvement Plan - Park Improvements 420
Schedule of Projected Revenue, Expenditures and Debt
Capital Project Fund Projected Activity
19
2018 2019 2020 2021 2022 2023
Year to Estimated Estimated Estimated Estimated Estimated Estimated
Department Replace Item Cost Amounts Amounts Amounts Amounts Amounts Amounts
City Buildings 2018 City Hall - office cubes and desks 100,000$ 100,000$ -$ -$ -$ -$ -$
City Buildings 2018 City Hall - replace fire alarm panel 2,000 2,000 - - - - -
City Buildings 2018 City Hall & CCC - front end UNC for HVAC system 33,000 33,000 - - - - -
City Buildings 2018 City Hall - Chamber window film/lights 7,500 7,500 - - - - -
City Buildings 2018 Fire - South - replace water heater 7,000 7,000 - - - - -
City Buildings 2018 Fire - South - rehab stairway to roof 7,000 7,000 - - - - -
City Buildings 2018 Fire - North - tuckpoint walls 5,000 5,000 - - - - -
City Buildings 2018 Water walk cargo net 7,000 7,000 - - - - -
City Buildings 2018 Replace pool heaters 20,000 20,000 - - - - -
City Buildings 2018 Extend irrigation system 15,000 15,000 - - - - -
City Buildings 2018 Add windows and screens to louvers of pool building 20,000 20,000 - - - - -
City Buildings 2018 Update entryway of pool building 200,000 200,000 - - - - -
City Buildings 2018 Rehab/recoat pool building floor 40,000 40,000 - - - - -
City Buildings 2018 Repair tile and plaster inside pool 15,000 15,000 - - - - -
City Buildings 2018 Umbrella and/or fabric replacement program 33,000 33,000 - - - - -
City Buildings 2018 Skylight/Roof renovation 145,000 145,000 - - - - -
City Buildings 2018 Replace LCD projector and add smart board 8,000 8,000 - - - - -
City Buildings 2018 Replace convection ovens (2)10,000 10,000 - - - - -
City Buildings 2018 Activity room - reface cabinets 5,000 5,000 - - - - -
City Buildings 2018 Replace Community Center lighted marquee 40,000 40,000 - - - - -
City Buildings 2018 Front desk security/update 20,000 20,000 - - - - -
City Buildings 2019 2019 Capital requests 307,000 - 307,000 - - - -
City Buildings 2019 Repair/repaint east side of City Hall 24,000 - 24,000 - - - -
City Buildings 2019 Paint South Fire station 32,000 - 32,000 - - - -
City Buildings 2019 Replace service doors at South fire station 10,000 - 10,000 - - - -
City Buildings 2019 Replace service doors at PD lower lot 10,000 - 10,000 - - - -
City Buildings 2019 Replace tube (bay area) heaters at north station 6,000 - 6,000 - - - -
City Buildings 2019 Replace irrigation system at north fire station 10,000 - 10,000 - - - -
City Buildings 2019 Replace 'Teacup' Water Feature 25,000 - 25,000 - - - -
City Buildings 2019 Paint Bridge & Diving Board 30,000 - 30,000 - - - -
City Buildings 2019 Heater #2 (pool water)20,000 - 20,000 - - - -
City Buildings 2019 LED Lights - Gyms/storage/restrooms 26,500 - 26,500 - - - -
City Buildings 2019 Painting Mtg. rooms, hallway, etc.8,000 - 8,000 - - - -
City Buildings 2019 Landscaping on SE side 15,000 - 15,000 - - - -
City Buildings 2019 Temp./Light Controls - gyms 24,000 - 24,000 - - - -
City Buildings 2020 City Hall Furniture / Remodel 110,000 - - 110,000 - - -
City Buildings 2020 2020 Capital requests 10,000 - - 10,000 - - -
City Buildings 2020 Generator for City Hall 225,000 - - 225,000 - - -
City Buildings 2020 Replace tube (bay area) heaters at north station 6,000 - - 6,000 - - -
City Buildings 2020 Re-Landscape City Hall south and west sides 20,000 - - 20,000 - - -
City Buildings 2020 City Hall fire alarm system upgrade 9,000 - - 9,000 - - -
City Buildings 2020 Coat Zero Depth Slide 8,000 - - 8,000 - - -
City Buildings 2020 Irrigation for Front of Building 15,000 - - 15,000 - - -
City Buildings 2020 Gazebo for Bday Party Rental 15,000 - - 15,000 - - -
Schedule of Planned Capital Outlay 2018 to 2023
Capital Improvement Plan - Building Fund 408/625
City of Crystal, Minnesota
20
2018 2019 2020 2021 2022 2023
Year to Estimated Estimated Estimated Estimated Estimated Estimated
Department Replace Item Cost Amounts Amounts Amounts Amounts Amounts Amounts
City Buildings 2020 LED Lights - Office/Meeting Rooms 25,500$ -$ -$ 25,500$ -$ -$ -$
City Buildings 2020 Bask. Hoop Safety Straps/Maint 10,000 - - 10,000 - - -
City Buildings 2020 Meeting Room Window Treatments 9,000 - - 9,000 - - -
City Buildings 2020 Entryway Mats 12,000 - - 12,000 - - -
City Buildings 2020 Temp./Light Controls (Kitchen/Sr.)12,000 - - 12,000 - - -
City Buildings 2020 Temp./Light Controls (Office/Mtg.)10,000 - - 10,000 - - -
City Buildings 2021 Replace roof at south fire station 90,000 - - - 90,000 - -
City Buildings 2021 Add roof access to south fire station 7,000 - - - 7,000 - -
City Buildings 2021 Pool Umbrella Fabric 15,000 - - - 15,000 - -
City Buildings 2021 New Water Feature 25,000 - - - 25,000 - -
City Buildings 2021 Parking Lot Improvements 140,000 - - - 140,000 - -
City Buildings 2021 Parking Lot / Building Lights 40,000 - - - 40,000 - -
City Buildings 2022 Replace council chambers carpet 15,000 - - - - 15,000 -
City Buildings 2022 Replace generator at north fire station 26,000 - - - - 26,000 -
City Buildings 2022 Replace generator at south fire station 26,000 - - - - 26,000 -
City Buildings 2022 Pool Cargo Net 8,000 - - - - 8,000 -
City Buildings 2022 Replace Building Louvers 50,000 - - - - 50,000 -
City Buildings 2022 Dishwasher 18,000 - - - - 18,000 -
City Buildings 2022 Replace Floor Scrubber 15,000 - - - - 15,000 -
City Buildings 2023 Replace City Hall cubicles 75,000 - - - - - 75,000
City Buildings 2023 Replace City Hall carpet 15,000 - - - - - 15,000
City Buildings 2023 New Water Feature 25,000 - - - - - 25,000
City Buildings 2023 Replace Water Walk Pads 15,000 - - - - - 15,000
City Buildings 2023 Replace Sand in Filters 10,000 - - - - - 10,000
City Buildings 2023 Entrance Fascade 150,000 - - - - - 150,000
City Buildings 2023 Air Handler (Office & Mtg Rooms)40,000 - - - - - 40,000
741,518$ 549,519$ 498,520$ 319,021$ 160,022$ 332,023$
City of Crystal, Minnesota
Capital Improvement Plan - Building Fund 408/625
Schedule of Planned Capital Outlay 2018 to 2023 (Continued)
21
2018 2019 2020 2021 2022 2023
Estimated Estimated Estimated Estimated Estimated Estimated
Amounts Amounts Amounts Amounts Amounts Amounts
Revenues
Property taxes (2% increase, annually in 2019- 2023)574,400$ 585,888$ 597,606$ 609,558$ 621,749$ 634,184$
Internal charges - 276,302 288,250 302,663 317,796 333,685
Interest on investments 6,446 28,407 34,622 41,527 50,415 61,104
Intergovernmental revenue (local government aid, 0% increase projected)- 556,756 556,756 556,756 556,756 556,756
Miscellaneous - - - - - -
Total Revenues 580,846 1,447,353 1,477,234 1,510,503 1,546,716 1,585,730
Expenditures
Personnel expenses - 276,302 288,250 302,663 317,796 333,685
Capital outlay
Parks & Recreation 741,518 549,519 498,520 319,021 160,022 332,023
Total Expenditures 741,518 825,821 786,770 621,684 477,818 665,708
Excess (Deficiency) of Revenues
Over (Under) Expenditures (160,672) 621,532 690,464 888,820 1,068,898 920,021
Other Financing Sources
Bond proceeds - - - - - -
Transfers in 2,356,742 - - - - -
Total Other Financing Sources 2,356,742 - - - - -
Net Change in Fund Balances 2,196,070 621,532 690,464 888,820 1,068,898 920,021
Fund Balances, January 1 644,615 2,840,685 3,462,217 4,152,681 5,041,501 6,110,399
Fund Balances, December 31 2,840,685$ 3,462,217$ 4,152,681$ 5,041,501$ 6,110,399$ 7,030,420$
Schedule of Projected Revenue, Expenditures and Debt
Capital Project Fund Projected Activity
City of Crystal, Minnesota
Capital Improvement Plan - Building Fund 408/625
22
City of Crystal, Minnesota
Capital Improvement Plan - Fleet Fund 615
Schedule of Planned Capital Outlay 2018 to 2023
2018 2019 2020 2021 2022 2023
Year to Estimated Estimated Estimated Estimated Estimated Estimated
Replace Item Cost Amounts Amounts Amounts Amounts Amounts Amounts
Public Works 2018 Replace #308 - 2002 Chevy Silverado 3/4 ton (sign truck)90,000$ 90,000$ -$ -$ -$ -$ -$
Public Works 2018 Replace #329 - 2004 John Deere front end loader 220,000 220,000 - - - - -
Public Works 2018 Replace #302B - broom for 2006 MT5T trackless plow 8,000 8,000 - - - - -
Public Works 2018 Replace #121 - 1988 John Deere tractor 85,000 85,000 - - - - -
Public Works 2018 Replace #124 - 2007 Toro GM4000-D mower 63,000 63,000 - - - - -
Public Works 2019 Replace #315 - 2006 Freightliner SA with TA hook 265,000 - 265,000 - - - -
Public Works 2019 Replace #325 - 2000 Ingersoll Rand 1 ton roller 50,000 - 50,000 - - - -
Public Works 2019 Replace #308 - 2002 Chevy sign/fleet truck 90,000 - 90,000 - - - -
Public Works 2019 Z Turn Mower (replacement)18,000 - 18,000 - - - -
Public Works 2019 Tanker Truck (replacement)175,000 - 175,000 - - - -
Public Works 2019 Tommy Gate for truck # 106 5,000 - 5,000 - - - -
Public Works 2019 6205 - Water Utility Replace #432 - 2008 Ford F150 50,000 - 50,000 - - - -
Public Works 2020 Replace #341 - 2005 CAT 3 ton roller 60,000 - - 60,000 - - -
Public Works 2020 Replace #302 - 2006 MT5T Trackless 200,000 - - 200,000 - - -
Public Works 2020 Replace #337 - 2013 Mauldin asphalt paver 195,000 - - 195,000 - - -
Public Works 2020 11' Large Area Mower (replacement)60,000 - - 60,000 - - -
Public Works 2020 Parks Utility Truck (Replace #119)35,000 - - 35,000 - - -
Public Works 2020 Replace #339 Tack trailer 90,000 - - 90,000 - - -
Public Works 2021 Replace #311 - 2007 Freightliner SA 260,000 - - - 260,000 - -
Public Works 2021 Replace #327 - 2008 message board 25,000 - - - 25,000 - -
Public Works 2021 Pick-up Truck (Replace Truck # 40)28,000 - - - 28,000 - -
Public Works 2021 Fertilizer Spreader 6,000 - - - 6,000 - -
Public Works 2021 Aerator 35,000 - - - 35,000 - -
Public Works 2021 Replace Engineering #42 35,000 - - - 35,000 - -
Public Works 2021 Replace car #27 - 2007 Chevy Malibu 20,000 - - - 20,000 - -
Public Works 2021 Replace car #57 - 2006 Chevy Malibu 20,000 - - - 20,000 - -
Public Works 2022 Replace #309 - 2010 Freightliner TA 270,000 - - - - 270,000 -
Public Works 2022 Replace #307 - 2012 Ram 2500 (new is swap loader)150,000 - - - - 150,000 -
Public Works 2022 Replace #301 - 2011 Dodge Ram 55,000 - - - - 55,000 -
Public Works 2022 Pick up truck ( Replace truck # 44)28,000 - - - - 28,000 -
Public Works 2022 utility trailer (replace Z turn trailer)8,000 - - - - 8,000 -
Public Works 2022 20 Kw portable generator with light tower (replace existing 37kW)20,000 - - - - 20,000 -
Public Works 2023 Replace #364 - 1998 trailer hot box/patching 45,000 - - - - - 45,000
Public Works 2023 Replace #310 - 2010 Chevy 3500 75,000 - - - - - 75,000
Public Works 2023 Replace #314 - 2012 International SA 265,000 - - - - - 265,000
Public Works 2023 One ton dump (Replace truck # 125)45,000 - - - - - 45,000
Public Works 2023 6237- water utility Replace #434 - 1996 Air Compressor 30,000 - - - - - 30,000
466,000$ 653,000$ 640,000$ 429,000$ 531,000$ 460,000$
Department
23
Capital Improvement Plan - Fleet Fund 615
2018 2019 2020 2021 2022 2023
Estimated Estimated Estimated Estimated Estimated Estimated
Cash Flows from Operating Activities
Receipts from interfund services provided (5% growth annually)-$ -$ -$ -$ -$ -$
Receipts from property taxes (1% increase, annually, beginning in 2020)- 85,680 86,537 87,402 88,276 89,159
Payments to suppliers and employees (5% growth annually)- - - - - -
Net Cash Provided (Used) by Operating Activities - 85,680 86,537 87,402 88,276 89,159
Cash Flows from Noncapital Financing Activities
Transfers in/(out)2,842,993 - - - - -
Net Cash Provided (Used) by Noncapital Financing Activities 2,842,993 - - - - -
Cash Flows from Capital and Related Financing Activities
Acquisition of capital assets (466,000) (653,000) (640,000) (429,000) (531,000) (460,000)
Proceeds from sale of assets - - - - - -
Proceeds from bonds and notes issued - - - - - -
Net Cash Used by Capital and Related Financing Activities (466,000) (653,000) (640,000) (429,000) (531,000) (460,000)
Cash Flows from Investing Activities
Investment earnings - 23,770 18,334 12,983 9,697 5,367
Net Increase (Decrease) in Cash and Cash Equivalents 2,376,993 (543,550) (535,129) (328,615) (433,027) (365,474)
Cash and Cash Equivalents, January 1 - 2,376,993 1,833,443 1,298,314 969,699 536,672
Cash and Cash Equivalents, December 31 2,376,993$ 1,833,443$ 1,298,314$ 969,699$ 536,672$ 171,198$
Enterprise Fund Projected Activity
City of Crystal, Minnesota
Statement of Cash Flows
24
2018 2019 2020 2021 2022 2023
Year to Estimated Estimated Estimated Estimated Estimated Estimated
Department Replace Item Cost Amounts Amounts Amounts Amounts Amounts Amounts
Information Technology 2018 Security access control system 24,000$ 24,000$ -$ -$ -$ -$ -$
Information Technology 2018 Computer hardware and software 55,000 55,000 - - - - -
Information Technology 2018 Laserfiche/Docusphere records management 12,000 12,000 - - - - -
Information Technology 2018 800 MGHZ for Public Works 55,000 55,000 - - - - -
Information Technology 2019 Robbinsdale SD - Potential Replacement 18,833 - 18,833 - - - -
Information Technology 2019 System Log Server 3,500 - 3,500 - - - -
Information Technology 2019 Computer Hardware & Software 55,000 - 55,000 - - - -
Information Technology 2019 City Hall Switch 1 - 48 Port POE 9,605 - 9,605 - - - -
Information Technology 2019 City Hall Switch 5 - 48 Port POE 11,128 - 11,128 - - - -
Information Technology 2019 Wireless Controller - 25 AP License 5,459 - 5,459 - - - -
Information Technology 2019 Large Format Scanner 7,300 - 7,300 - - - -
Information Technology 2019 Networked Department Printers 800 - 800 - - - -
Information Technology 2019 Communication Room Wiring Upgrade 4,500 - 4,500 - - - -
Information Technology 2019 Redundant Connectivity | PW -> CH 676 - 676 - - - -
Information Technology 2019 Pool Switch - 24 Port POE 3,141 - 3,141 - - - -
Information Technology 2019 WiFi AP - CCC Office 902 - 902 - - - -
Information Technology 2019 Redundant Connectivity | CCC -> PW 3,176 - 3,176 - - - -
Information Technology 2019 CH & PD DVR Server 10,000 - 10,000 - - - -
Information Technology 2019 Access Control Server 3,000 - 3,000 - - - -
Information Technology 2019 Access Control Maintenance & Updates 3,000 - 3,000 - - - -
Information Technology 2019 IP Camera Maintenance & Updates 8,000 - 8,000 - - - -
Information Technology 2020 Robbinsdale SD - Potential Replacement 18,833 - - 18,833 - - -
Information Technology 2020 Computer Hardware & Software 57,500 - - 57,500 - - -
Information Technology 2020 City Hall Switch 2 - 48 Port POE 8,021 - - 8,021 - - -
Information Technology 2020 City Hall Swtich 3 - 48 port POE 8,757 - - 8,757 - - -
Information Technology 2020 City Hall Switch 4 - 48 Port POE 7,345 - - 7,345 - - -
Information Technology 2020 WiFi AP - PD Investigations 845 - - 845 - - -
Information Technology 2020 Multi-Function Printer - Copy Room 9,500 - - 9,500 - - -
Information Technology 2020 Multi-Function Printer - Finance 7,000 - - 7,000 - - -
Information Technology 2020 Networked Department Printers 800 - - 800 - - -
Information Technology 2020 Public Works Switch - 48 Port POE 6,937 - - 6,937 - - -
Information Technology 2020 PW Switch - 24 Port POE (Pumphouse)4,250 - - 4,250 - - -
Information Technology 2020 WiFi AP - PW Office 845 - - 845 - - -
Information Technology 2020 WiFi AP - PW Garage East 845 - - 845 - - -
Information Technology 2020 WiFi AP - PW Garage West 845 - - 845 - - -
Information Technology 2020 Networked Department Printers 800 - - 800 - - -
Information Technology 2020 Networked Department Printers 800 - - 800 - - -
Information Technology 2020 CCC & Pool DVR Server 7,500 - - 7,500 - - -
Information Technology 2020 Access Control Maintenance & Updates 6,000 - - 6,000 - - -
Information Technology 2020 IP Camera Maintenance & Updates 10,500 - - 10,500 - - -
Information Technology 2020 Audio Update - A/B Room 15,000 - - 15,000 - - -
Information Technology 2021 Robbinsdale SD - Potential Replacement 18,833 - - - 18,833 - -
Information Technology 2021 Computer Hardware & Software 60,000 - - - 60,000 - -
Information Technology 2021 WiFi AP - Emergency Ops Center 732 - - - 732 - -
Information Technology 2021 Network Firewall ASA 5,365 - - - 5,365 - -
Information Technology 2021 WiFi AP - Conference A 732 - - - 732 - -
Information Technology 2021 WiFi AP - Cable Room 732 - - - 732 - -
Information Technology 2021 WiFi AP - Server Room 732 - - - 732 - -
Information Technology 2021 Multi-Function Printer - Police 9,500 - - - 9,500 - -
Information Technology 2021 Networked Department Printers 800 - - - 800 - -
Information Technology 2021 Multi-Function Printer - Public Works 7,000 - - - 7,000 - -
Information Technology 2021 CCC Switch - 48 Port POE 6,937 - - - 6,937 - -
Information Technology 2021 WiFi AP - CCC AB Room 732 - - - 732 - -
Information Technology 2021 WiFi AP - CCC Activity Room 732 - - - 732 - -
Information Technology 2021 Multi-Function Printer - CCC 7,000 - - - 7,000 - -
Information Technology 2021 PW DVR Server 7,500 - - - 7,500 - -
Information Technology 2021 Security Camera Upgrades 20,000 - - - 20,000 - -
Capital Improvement Plan - Information Technology Fund 620
City of Crystal, Minnesota
Schedule of Planned Capital Outlay 2018 to 2023
25
2018 2019 2020 2021 2022 2023
Year to Estimated Estimated Estimated Estimated Estimated Estimated
Department Replace Item Cost Amounts Amounts Amounts Amounts Amounts Amounts
Information Technology 2022 Networked Department Printers 800$ -$ -$ -$ -$ 800$ -$
Information Technology 2022 Large Format Plotter/Scanner 10,000 - - - - 10,000 -
Information Technology 2022 Access Control Maintenance & Updates 6,000 - - - - 6,000 -
Information Technology 2022 IP Camera Maintenance & Updates 10,000 - - - - 10,000 -
Information Technology 2023 Robbinsdale SD - Potential Replacement 18,833 - - - - - 18,833
Information Technology 2023 Computer Hardware & Software 65,000 - - - - - 65,000
Information Technology 2023 Multi-Function Printer - ComDev 7,000 - - - - - 7,000
Information Technology 2023 Networked Department Printers 800 - - - - - 800
Information Technology 2023 Network Firewall ASA 5,252 - - - - - 5,252
Information Technology 2023 Public Works Switch - 24 Port | LOGIS 4,703 - - - - - 4,703
Information Technology 2023 Access Control Maintenance & Updates 6,000 - - - - - 6,000
Information Technology 2023 IP Camera Maintenance & Updates 10,000 - - - - - 10,000
148,018$ 150,039$ 174,943$ 149,348$ 28,822$ 119,611$
City of Crystal, Minnesota
Capital Improvement Plan - Information Technology Fund 620
Schedule of Planned Capital Outlay 2018 to 2023 (Continued)
26
2018 2019 2020 2021 2022 2023
Estimated Estimated Estimated Estimated Estimated Estimated
Cash Flows from Operating Activities
Receipts from interfund services provided (3% growth annually)-$ 471,201$ 476,905$ 491,212$ 505,949$ 521,127$
Receipts from property taxes (1% increase, annually, beginning in 2020)159,179$ 159,902$ 161,501$ 163,116$ 164,747$
Payments to suppliers and employees (3% growth assumption)- (626,808) (624,200) (642,926) (662,214) (682,080)
Net Cash Provided (Used) by Operating Activities - 3,572 12,607 9,787 6,851 3,794
Cash Flows from Noncapital Financing Activities
Transfers in 391,989 - - - - -
Net Cash Provided (Used) by Noncapital Financing Activities 391,989 - - - - -
Cash Flows from Capital and Related Financing Activities
Acquisition of capital assets (148,018) (150,039) (174,943) (149,348) (28,822) (119,611)
Intergovernmental revenue - - - - - -
Proceeds from sale of assets - - - - - -
Proceeds from bonds and notes issued - - - - - -
Net Cash Provided (Used) by Capital and Related Financing Activities (148,018) (150,039) (174,943) (149,348) (28,822) (119,611)
Cash Flows from Investing Activities
Investment earnings - 2,440 999 (614) (2,016) (2,256)
Net Increase (Decrease) in Cash and Cash Equivalents 243,971 (144,027) (161,337) (140,175) (23,987) (118,073)
Cash and Cash Equivalents, January 1 - 243,971 99,943 (61,393) (201,568) (225,555)
Cash and Cash Equivalents, December 31 243,971$ 99,943$ (61,393)$ (201,568)$ (225,555)$ (343,627)$
Enterprise Fund Projected Activity
Statement of Cash Flows
Capital Improvement Plan - Information Technology Fund 620
City of Crystal, Minnesota
27
2018 2019 2020 2021 2022 2023
Year to Estimated Estimated Estimated Estimated Estimated Estimated
Department Replace Item Cost Amounts Amounts Amounts Amounts Amounts Amounts
Water 2018 Gate valve and hydrant replacements 50,000$ 50,000$ -$ -$ -$ -$ -$
Water 2019 6235 -Gate Valve and Hydrant replacement 75,000 - 75,000 - - - -
Water 2019 6220- Water main replacement/relining 600,000 - 600,000 - - - -
Water 2020 6207 - Upgrade Sensus meter software 30,000 - - 30,000 - - -
Water 2020 6220- Water main replacement/relining 400,000 - - 400,000 - - -
Water 2020 June Ave water main replacement (with Blue Line)200,000 - - 200,000 - - -
Water 2021 6235 -Gate Valve and Hydrant replacement 75,000 - - - 75,000 - -
Water 2021 6220- Water main replacement/relining 600,000 - - - 600,000 - -
Water 2022 6220- Water main replacement/relining 600,000 - - - - 600,000 -
Water 2023 6235 -Gate Valve and Hydrant replacement 75,000 - - - - - 75,000
Water 2023 6220- Water main replacement/relining 600,000 - - - - - 600,000
50,000$ 675,000$ 630,000$ 675,000$ 600,000$ 675,000$
City of Crystal, Minnesota
Capital Improvement Plan - Water Fund 505
Schedule of Planned Capital Outlay 2018 to 2023
28
2018 2019 2020 2021 2022 2023
Estimated Estimated Estimated Estimated Estimated Estimated
Cash Flows from Operating Activities
Receipts from customers and users (5% growth assumption)3,568,807$ 3,747,248$ 3,934,610$ 4,131,340$ 4,337,907$ 4,554,803$
Payments to suppliers and employees (5% growth assumption)(2,766,677) (2,905,010) (3,050,261) (3,202,774) (3,362,913) (3,531,058)
Net Cash Provided (Used) by Operating Activities 802,131 842,237 884,349 928,567 974,995 1,023,745
Cash Flows from Noncapital Financing Activities
Transfers out (173,854) (183,309) (189,517) (198,993) (208,943) (219,390)
Net Cash Provided (Used) by Noncapital Financing Activities (173,854) (183,309) (189,517) (198,993) (208,943) (219,390)
Cash Flows from Capital and Related Financing Activities
Acquisition of capital assets (50,000) (675,000) (630,000) (675,000) (600,000) (675,000)
Intergovernmental (Joint Water Commission)- - - - - -
Principal and interest on debt (8,400) (7,200) (6,000) (4,800) (3,600) (2,400)
Advances to/(from) other funds (60,000) (60,000) (60,000) (60,000) (60,000) (60,000)
Net Cash Provided (Used) by Capital and Related Financing Activities (118,400) (742,200) (696,000) (739,800) (663,600) (737,400)
Cash Flows from Investing Activities
Investment earnings 9,530 14,724 14,039 14,168 14,207 15,374
Net Increase (Decrease) in Cash and Cash Equivalents 519,407 (68,547) 12,871 3,941 116,659 82,329
Cash and Cash Equivalents, January 1 953,039 1,472,446 1,403,899 1,416,770 1,420,711 1,537,371
Cash and Cash Equivalents, December 31 1,472,446$ 1,403,899$ 1,416,770$ 1,420,711$ 1,537,371$ 1,619,699$
Enterprise Fund Projected Activity
City of Crystal, Minnesota
Capital Improvement Plan - Water Fund 505
Statement of Cash Flows
29
2018 2019 2020 2021 2022 2023
Year to Estimated Estimated Estimated Estimated Estimated Estimated
Department Replace Item Cost Amounts Amounts Amounts Amounts Amounts Amounts
Sewer 2018 Back-up pump - South lift station #9 20,000$ 20,000$ -$ -$ -$ -$ -$
Sewer 2018 Three phase power - South lift station #9 50,000 50,000 - - - - -
Sewer 2018 Reline sewer - 30" CIPP 2002-10 50,000 50,000 - - - - -
Sewer 2018 Add emerg generator - Welcome Av lift station #5 50,000 50,000 - - - - -
Sewer 2018 Replace manhole covers 225,000 225,000 - - - - -
Sewer 2019 6504 - Sanitary Sewer Replacement (lining, dig up)600,000 - 600,000 - - - -
Sewer 2020 6504 - Sanitary Sewer Replacement (lining, dig up)600,000 - - 600,000 - - -
Sewer 2020 Install Pad mount Generator at West Lift Station 50,000 - - 50,000 - - -
Sewer 2021 6504 - Sanitary Sewer Replacement (lining, dig up)600,000 - - - 600,000 - -
Sewer 2022 6504 - Sanitary Sewer Replacement (lining, dig up)600,000 - - - - 600,000 -
Sewer 2023 6504 - Sanitary Sewer Replacement (lining, dig up)600,000 - - - - - 600,000
395,000$ 600,000$ 650,000$ 600,000$ 600,000$ 600,000$
City of Crystal, Minnesota
Capital Improvement Plan - Sewer Fund 510
Schedule of Planned Capital Outlay 2018 to 2023
30
2018 2019 2020 2021 2022 2023
Estimated Estimated Estimated Estimated Estimated Estimated
Cash Flows from Operating Activities
Receipts from customers and users (5% growth assumption)2,409,800$ 2,530,290$ 2,656,805$ 2,789,645$ 2,929,127$ 3,075,584$
Payments to suppliers and employees (5% growth assumption)(2,028,198) (2,129,608) (2,236,088) (2,347,893) (2,465,287) (2,588,552)
Net Cash Provided (Used) by Operating Activities 381,603 400,683 420,717 441,753 463,840 487,032
Cash Flows from Noncapital Financing Activities
Transfers in - TIF (173,854) (183,309) (189,517) (198,993) (208,943) (219,390)
Net Cash Provided (Used) by Noncapital Financing Activities (173,854) (183,309) (189,517) (198,993) (208,943) (219,390)
Cash Flows from Capital and Related Financing Activities
Acquisition of capital assets (395,000) (600,000) (650,000) (600,000) (600,000) (600,000)
Advances to/(from) other funds 30,000 30,000 30,000 30,000 30,000 30,000
Net Cash Provided (Used) by Capital and Related Financing Activities (365,000) (570,000) (620,000) (570,000) (570,000) (570,000)
Cash Flows from Investing Activities
Investment earnings 21,211 19,850 16,523 12,800 9,655 6,601
Net Increase (Decrease) in Cash and Cash Equivalents (136,040) (332,776) (372,278) (314,440) (305,447) (295,756)
Cash and Cash Equivalents, January 1 2,121,076 1,985,036 1,652,259 1,279,982 965,541 660,095
Cash and Cash Equivalents, December 31 1,985,036$ 1,652,259$ 1,279,982$ 965,541$ 660,095$ 364,338$
Statement of Cash Flows
Enterprise Fund Projected Activity
City of Crystal, Minnesota
Capital Improvement Plan - Sewer Fund 510
31
2018 2019 2020 2021 2022 2023
Year to Estimated Estimated Estimated Estimated Estimated Estimated
Department Replace Item Cost Amounts Amounts Amounts Amounts Amounts Amounts
Storm water 2018 Dredge Basset Creek Park pond 1,000,000$ 1,000,000$ -$ -$ -$ -$ -$
Storm water 2019 Becker Park infiltration project (1)2,750,000 - 2,750,000 - - - -
Storm water 2020 Rate Control,water quality, structure Rehab projects 50,000 - - 50,000 - - -
Storm water 2021 6804 - Gaulke Pond design, dredging, lift station rehab 750,000 - - - 750,000 - -
Storm water 2021 Rate Control,water quality, structure Rehab projects 50,000 - - - 50,000 - -
Storm water 2022 Rate Control,water quality, structure Rehab projects 500,000 - - - - 500,000 -
Storm water 2022 W. Broadway and Kentucky Infiltration 150,000 - - - - 150,000 -
Storm water 2023 Rate Control,water quality, structure Rehab projects 50,000 - - - - - 50,000
Storm water 2023 Yunkers Park storage project 1,500,000 - - - - - 1,500,000
1,000,000$ 2,750,000$ 50,000$ 800,000$ 650,000$ 1,550,000$
(1) Secured grants of $1,325,000 have been included in the cash flow analysis below; the City has also applied for an additional $80K of grants and identified $400K in other potential grant
opportunities.
City of Crystal, Minnesota
Capital Improvement Plan - Storm Water Fund 515
Schedule of Planned Capital Outlay 2018 to 2023
32
2018 2019 2020 2021 2022 2023
Estimated Estimated Estimated Estimated Estimated Estimated
Cash Flows from Operating Activities
Receipts from customers and users (5% growth assumption)1,095,142$ 1,149,899$ 1,207,394$ 1,267,763$ 1,331,151$ 1,397,709$
Payments to suppliers and employees (5% growth assumption)(459,183) (482,142) (506,249) (531,562) (558,140) (586,047)
Net Cash Provided (Used) by Operating Activities 635,959 667,757 701,145 736,202 773,012 811,662
Cash Flows from Noncapital Financing Activities
Transfers out (46,782) (49,326) (50,997) (53,547) (56,224) (59,035)
Net Cash Provided (Used) by Noncapital Financing Activities (46,782) (49,326) (50,997) (53,547) (56,224) (59,035)
Cash Flows from Capital and Related Financing Activities
Acquisition of capital assets (1,000,000) (2,750,000) (50,000) (800,000) (650,000) (1,550,000)
Intergovernmental revenue (Watershed, Met Council, MNDNR and other)1,000,000 1,325,000 - - 50,000 1,250,000
Net Cash Provided (Used) by Capital and Related Financing Activities - (1,425,000) (50,000) (800,000) (600,000) (300,000)
Cash Flows from Investing Activities
Investment earnings 7,879 13,850 5,922 11,983 10,930 12,207
Net Increase (Decrease) in Cash and Cash Equivalents 597,056 (792,720) 606,070 (105,362) 127,717 464,834
Cash and Cash Equivalents, January 1 787,914 1,384,970 592,250 1,198,320 1,092,958 1,220,675
Cash and Cash Equivalents, December 31 1,384,970$ 592,250$ 1,198,320$ 1,092,958$ 1,220,675$ 1,685,509$
Capital Improvement Plan - Storm Water Fund 515
Statement of Cash Flows
Enterprise Fund Projected Activity
City of Crystal, Minnesota
33
2018 2019 2020 2021 2022 2023
Year to Estimated Estimated Estimated Estimated Estimated Estimated
Department Replace Item Cost Amounts Amounts Amounts Amounts Amounts Amounts
Street light 2019 Parking lot lighting upgrades at City Hall 45,000$ -$ 45,000$ -$ -$ -$ -$
Street light 2020 HPS to LED conversion 25,000 - - 25,000 - - -
Street light 2021 HPS to LED conversion 25,000 - - - 25,000 - -
Street light 2022 HPS to LED conversion 25,000 - - - - 25,000 -
Street light 2023 HPS to LED conversion 25,000 - - - - - 25,000
Street light 2023 Underground utility poles (42nd)1,000,000 - - - - - 1,000,000
-$ 45,000$ 25,000$ 25,000$ 25,000$ 1,025,000$
2018 2019 2020 2021 2022 2023
Estimated Estimated Estimated Estimated Estimated Estimated
Cash Flows from Operating Activities
Receipts from customers and users (5% growth assumption)204,688$ 214,922$ 225,669$ 236,952$ 248,800$ 261,240$
Payments to suppliers and employees (5% growth assumption)(128,797) (135,237) (141,999) (149,099) (156,554) (164,381)
Net Cash Provided (Used) by Operating Activities 75,891 79,685 83,670 87,853 92,246 96,858
Cash Flows from Noncapital Financing Activities
Transfers out (13,216) (13,216) (13,935) (14,632) (15,363) (16,132)
Net Cash Provided (Used) by Noncapital Financing Activities (13,216) (13,216) (13,935) (14,632) (15,363) (16,132)
Cash Flows from Capital and Related Financing Activities
Acquisition of capital assets - (45,000) (25,000) (25,000) (25,000) (1,025,000)
Advances to/(from) other funds 30,000 30,000 30,000 30,000 30,000 30,000
Net Cash Provided (Used) by Capital and Related Financing Activities 30,000 (15,000) 5,000 5,000 5,000 (995,000)
Cash Flows from Investing Activities
Investment earnings 4,885 5,861 6,434 7,246 8,100 9,000
Net Increase (Decrease) in Cash and Cash Equivalents 97,560 57,330 81,169 85,467 89,983 (905,273)
Cash and Cash Equivalents, January 1 488,501 586,061 643,390 724,559 810,026 900,009
Cash and Cash Equivalents, December 31 586,061$ 643,390$ 724,559$ 810,026$ 900,009$ (5,265)$
City of Crystal, Minnesota
Capital Improvement Plan - Street Light Fund 520
City of Crystal, Minnesota
Capital Improvement Plan - Street Light Fund 520
Schedule of Planned Capital Outlay 2018 to 2023
Enterprise Fund Projected Activity
Statement of Cash Flows
34
Tax Rates
Tax Rates:
General Fund Operations and All Funds Cash Balances
General Fund Balance as a Percent of Revenue:Cash Balance by Planned Use (000's):
Tax rates are a function of the levy and total tax base. The city tax rate is computed by dividing the city levy by the taxable tax capacity. Future tax rates are
based on the assumption of 3.5% growth in tax capacity (see Assumptions). Comparable communities are provided for reference.
The General fund fund balance should be maintained at a level to provide for
adequate working capital reserves. The MN State Auditor recommends a 35-
50% reserve. As the expenditure budget grows, the required reserve should
increase accordingly. The City can build to this target by adding to contingency
each year. This can be accomplished by reducing expenditures and maintaining
the same level of revenue or increasing tax levy.
The balances represented in this graph are categorized by the planned
use and/or limitations determined by statute.
$-
$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
Fund BalanceBudgetTarget Fund Balance (45%)
General Fund Balance as a Percent of Expenditures
2017 (Actual) 2018 -2023 (Estimated)
0.00%
10.00%
20.00%
30.00%
40.00%
50.00%
60.00%
2017 2018 2019 2020 2021 2022 2023
City Tax Capacity Rates
2017 -2018 (Actual) and 2019 -2023 (Estimated)
General Capital levies
Scheduled debt levies Total EDA Tax Rate
$-
$10,000,000
$20,000,000
$30,000,000
$40,000,000
$50,000,000
2017 2018 2019 2020 2021 2022 2023
Cash Balance by Planned Use
2017 (Actual) and 2018 -2023 (Estimated)
General fund Debt service
Capital projects Special revenue
Enterprise Internal service
Agency (pass-through grant)
0.00%
10.00%
20.00%
30.00%
40.00%
50.00%
60.00%
70.00%
80.00%
2013 2014 2015 2016 2017 2018
Tax Capacity Tax Rate -Comparison Cities
2013 -2018 (Actual)
New Hope Golden Valley Champlin
Hopkins Brooklyn Center Crystal
35
Property Taxes by Type
Debt
Debt Balances
This graph highlights the percent of levy by planned use. Increases in the levy
are primarily attributed to the growth in scheduled and proposed debt levies as
well as growth in the City's General levy. The overall city tax burden for a
$196,000 house in 2019 is shown in the graph on the right.
The overall property tax levy for an average valued house is
highlighted above.
The above assumes no new debt. From 2016 to 2023, as presented above, total governmental type debt is reduced from $15.9 million to $14.3 million, a
reduction of approximately $1.6 million.
Projected City Tax Impact - 2019 $196,000 homePercent of Property Taxes - General Levy and Bonds
$-
$2,000,000
$4,000,000
$6,000,000
$8,000,000
$10,000,000
$12,000,000
$14,000,000
2017 2018 2019 2020 2021 2022 2023
Property Taxes -General Levy, EDA,
Debt Service and Capital
2017 -2018 (Actual) and 2019 -2023 (Estimated)
General Capital Economic Development Authority Debt service -
200
400
600
800
1,000
1,200
2017 2018 2019 2020 2021 2022 2023
Projected City Tax Impact
2017 -2023 (Estimated)
$-
$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
$20,000,000
2016 2017 2018 2019 2020 2021 2022 2023
Projected Debt Balances Based on Current
Amortizations and New Debt Assumed in CIP
2017 (Actual) and 2018 -2023 (Estimated)
G.O. Aquatic Center Bonds G.O. Improvement
G.O. Street Reconstruction
0
500
1000
1500
2000
2500
3000
3500
4000
4500
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
Debt Per Capita -Comparison Cities
2012 -2017 (Actual) 2018 -2022 (Estimated)
New Hope Golden ValleyChamplinHopkinsBrooklyn Center Crystal
36
A ppendix A
37
City of Crystal, Minnesota
Schedule of Property Taxes Levied and Tax Rates
For the Years Ended December 31, 2017 and 2018 (Actual) and 2019 to 2023 (Estimated)
Alternative A
2017 2018 2019 2020 2021 2022 2023
Actual Actual Estimated Estimated Estimated Estimated Estimated
Amounts Amounts Amounts Amounts Amounts Amounts Amounts
Property Taxes Levied for General Purposes
100 General 8,657,000$ 9,436,779$ 9,641,249$ 10,266,584$ 10,574,582$ 10,891,819$ 11,218,574$
220 EDA/HRA Funds 277,200 277,200 282,744 288,399 294,167 300,050 306,051
415 Street Capital 163,600 163,600 110,144 116,950 121,628 126,493 131,553
235 PERF Fund 137,400 151,900 154,938 158,037 161,197 164,421 167,710
405 PIR Fund 266,220 301,210 - - - - -
408 Building Fund 574,400 574,400 585,888 597,606 609,558 621,749 634,184
420 Park Improvements - - 248,310 358,914 476,359 593,804 713,804
615 Fleet - - 85,680 86,537 87,402 88,276 89,159
620 Information Technology - - 159,179 159,902 161,501 163,116 164,747
Subtotal 10,075,820 10,905,089 11,268,132 12,032,928 12,486,394 12,949,729 13,425,782
Property Taxes Levied for Debt Service
327/420 2005 Pool Bonds 212,000 - - - - - -
3XX/408 2020 Facility Bonds (Potential future levy)- - - - 609,000 596,400 583,800
Subtotal 212,000 - - - 609,000 596,400 583,800
Total Taxes Levied 10,287,820 10,905,089 11,268,132 12,032,928 13,095,394 13,546,129 14,009,582
Less: Value of Market Value Levies (489,200) (277,200) (282,744) (288,399) (294,167) (300,050) (306,051)
Less: Distribution from fiscal disparities (2,267,618) (2,186,657) (2,295,990) (2,410,789) (2,531,329) (2,657,895) (2,790,790)
City Net Levy 7,531,002$ 8,441,232$ 8,689,398$ 9,333,740$ 10,269,898$ 10,588,184$ 10,912,740$
Tax Capacity
Personal and Real Estate 16,716,393$ 18,459,975$ 19,382,974$ 20,352,122$ 21,369,729$ 22,438,215$ 23,560,126$
Other assumed net growth factors - - - - - - -
Less: Contribution to fiscal disparities (1,082,015) (1,079,088) (1,133,042) (1,189,695) (1,249,179) (1,311,638) (1,377,220)
Less: Tax Increment (248,944) (212,599) (212,599) (212,599) (212,599) (212,599) (212,599)
Adjusted net tax capacity 15,385,434$ 17,168,288$ 18,037,332$ 18,949,829$ 19,907,950$ 20,913,978$ 21,970,307$
38
City of Crystal, Minnesota
Schedule of Property Taxes Levied and Tax Rates (Continued)
For the Years Ended December 31, 2017 and 2018 (Actual) and 2019 to 2023 (Estimated)
Alternative A
2017 2018 2019 2020 2021 2022 2023
Actual Actual Estimated Estimated Estimated Estimated Estimated
Amounts Amounts Amounts Amounts Amounts Amounts Amounts
Tax Rates
General 42.33%43.66%42.28%43.06%42.61%41.63%40.66%
Capital levies 5.58%5.51%5.20%5.53%5.87%6.10%6.29%
Scheduled debt levies 1.04%0.00%0.00%0.00%2.45%2.28%2.12%
Total City 48.949%49.168%48.175%49.255%51.587%50.627%49.670%
Total EDA Tax Rate 1.385%1.274%1.250%1.225%1.201%1.177%1.152%
Population 22,855 22,967 23,080 23,193 23,307 23,307 23,421
Taxes per Capita 450$ 475$ 488$ 519$ 562$ 581$ 598$
Median Home Value (Jan 2)166,000$ 182,000$ 196,000$ 205,800$ 216,090$ 226,895$ 238,239$
Median Home Taxes (from city)703 792 850 922 1,023 1,064 1,105
% change from prior year $'s N/A 13%7%8%11%15%8%
Tax Levy ($)
General 8,657,000$ 9,436,779$ 9,641,249$ 10,266,584$ 10,574,582$ 10,891,819$ 11,218,574$
Capital 1,141,620 1,191,110 1,184,960 1,318,043 1,456,145 1,594,744 1,736,410
Economic Development Authority 277,200 277,200 282,744 288,399 294,167 300,050 306,051
Debt service 212,000 - - - 609,000 596,400 583,800
Tax Levy (%)
General 84%87%86%85%81%80%80%
Capital 11%11%11%11%11%12%12%
Economic Development Authority 3%3%3%2%2%2%2%
Debt service 2%0%0%0%5%4%4%
39
City of Crystal, Minnesota
Schedule of Annual Fund Cash Balances
For the Years Ended December 31, 2016 and 2017 (Actual) and 2018 to 2023 (Estimated)
Alternative A
2016 2017 2018 2019 2020 2021 2022 2023
Actual Actual Estimated Estimated Estimated Estimated Estimated Estimated
Amounts Amounts Amounts Amounts Amounts Amounts Amounts Amounts Trend
Government-Type
General Operations
101 General 7,426,395$ 7,380,956$ 7,429,826$ 7,429,826$ 7,429,825$ 6,941,339$ 5,935,057$ 4,380,352$
Special Revenue
220 Economic Development Authority 3,758,615 3,190,635 3,203,865 2,174,657 2,091,753 2,003,477 1,909,612 1,809,930
*206-210 TIF Districts Special Revenue 1,795,278 1,817,122 1,835,293 1,853,646 1,872,183 1,890,904 1,909,813 1,928,912
*240-245 Special Projects 86,462 98,913 99,902 99,903 99,904 99,905 99,906 99,907
Subtotal 5,640,355 5,106,670 5,139,060 4,128,206 4,063,840 3,994,287 3,919,332 3,838,749
Debt Service
329-336 Debt Service 5,731,734 5,282,301 5,219,104 5,164,999 5,119,733 5,077,749 5,044,073 5,044,073
Capital Projects
405 Capital Improvement Revolving 8,440,754 8,229,232 - - - - - -
415 Street Reconstruction 2,521,416 6,049,965 7,643,645 6,765,226 6,143,478 5,562,380 4,723,994 3,847,335
409 Fire Equipment Revolving 585,190 - - - - - - -
235 Police Equipment Revolving 3,109,809 3,080,805 2,937,313 2,889,424 2,855,655 2,834,509 2,828,076 2,787,866
410 Street Maintenance 1,587,990 1,696,364 - - - - - -
408/625 Building Fund 138,213 644,615 2,840,685 3,462,217 152,681 1,030,500 2,087,398 2,994,415
420 Park Improvement - 210,780 1,739,617 807,323 663,311 615,303 659,260 803,656
*404 Cable TV Equipment 69,757 108,477 109,562 110,657 111,764 112,882 114,010 115,151
Subtotal 16,314,916 19,375,623 12,430,137 10,572,631 9,774,208 9,125,074 8,325,340 7,554,009
Total - Governmental-type Funds 35,251,613 37,790,165 32,737,812 30,400,669 26,179,504 25,804,559 24,943,167 23,439,884
Internal Service
620 Information Technology - - 243,971 99,943 (61,393) (201,568) (225,555) (343,627)
615 Fleet - - 2,376,993 1,833,443 1,298,314 969,699 536,672 171,198
*605 Self Insurance 960,549 898,302 907,285 916,358 925,521 934,777 944,124 953,566
Total - Internal Service-type Funds 960,549 898,302 3,528,248 2,849,744 2,162,442 1,702,908 1,255,242 781,136
40
City of Crystal, Minnesota
Schedule of Annual Fund Cash Balances (Continued)
For the Years Ended December 31, 2016 and 2017 (Actual) and 2018 to 2023 (Estimated)
Alternative A
2016 2017 2018 2019 2020 2021 2022 2023
Actual Actual Estimated Estimated Estimated Estimated Estimated Estimated
Amounts Amounts Amounts Amounts Amounts Amounts Amounts Amounts Trend
Business-Type
Enterprise Funds
505 Water 438,599$ 953,039$ 1,472,446$ 1,403,899$ 1,416,770$ 1,420,711$ 1,537,371$ 1,619,699$
510 Sewer 2,312,443 2,121,076 1,985,036 1,652,259 1,279,982 965,541 660,095 364,338
515 Storm Drainage 379,568 787,914 1,384,970 592,250 1,198,320 1,092,958 1,220,675 1,685,509
520 Street Lights 387,731 488,501 586,061 643,390 724,559 810,026 900,009 (5,265)
*525 Recycling 109,314 120,021 121,221 122,433 123,658 124,894 126,143 127,405
Total - Business-type Funds 3,627,655 4,470,551 5,549,734 4,414,232 4,743,288 4,414,131 4,444,293 3,791,687
Agency Fund
*250 Hennepin Recycling Group 1,704,244 1,399,536 1,413,531 1,427,667 1,441,943 1,456,363 1,470,926 1,485,636
Grand Total - City 6,292,448$ 6,768,389$ 10,491,513$ 8,691,642$ 8,347,674$ 7,573,402$ 7,170,461$ 6,058,459$
*Annual growth in fund balance of 1% assumed
Trend indicator
Adequate for reserve levels
Adequate as of 2016 but decreasing balances, watch
Below targeted reserve levels and should have a plan to address
The fund has events in the future that need addressing now
41
Alternative A
2016 2017 2018 2019 2020 2021 2022 2023
Original Issue Maturity Interest Actual Actual Estimated Estimated Estimated Estimated Estimated Estimated
Fund Issue Issue Date Date Rate Balance Balance Balance Balance Balance Balance Balance Balance
Government-Type
General Obligation Bonds
327 2005B General Obligation Aquatic Center Bond 2,395,000$ 9/1/2005 2/1/2020 3.50-4.00%%765,000$ -$ -$ -$ -$ -$ -$ -$
326 2005A Special Assessment 1,440,000 9/14/2005 2/1/2021 3.50-4.00%- - - - - - - -
328 2006A Special Assessment 1,855,000 6/29/2006 2/1/2022 3.75-4.20%- - - - - - - -
329 2008A Special Assessment 2,190,000 8/1/2008 2/1/2024 3.50-4.35%1,045,000 900,000 760,000 625,000 495,000 365,000 240,000 120,000
330 2009A Special Assessment 3,360,000 7/21/2009 2/1/2030 2.00-4.50%2,200,000 2,020,000 1,845,000 1,675,000 1,505,000 1,340,000 1,180,000 1,020,000
331 2013B Street Reconstruction 85,940 85,940 - - - - - - -
332 2011A Special Assessment 1,705,000 7/19/2011 2/1/2027 0.50-3.55%1,155,000 1,030,000 910,000 795,000 685,000 575,000 470,000 370,000
333 2012A Special Assessment 2,635,000 7/16/2013 2/1/2028 0.50-3.55%2,000,000 1,805,000 1,615,000 1,430,000 1,250,000 1,080,000 915,000 750,000
334 2013A Special Assessment 3,235,000 6/17/2015 2/1/2029 0.50-3.55%2,770,000 2,525,000 2,285,000 2,050,000 1,825,000 1,605,000 1,390,000 1,180,000
335 2015A Special Assessment 2,550,000 7/16/2015 2/1/2031 2.50-3.00%2,550,000 2,325,000 2,130,000 1,940,000 1,755,000 1,575,000 1,400,000 1,230,000
336 2016A Special Assessment 3,330,000 8/25/2016 2/1/2032 2.00-2.50%3,330,000 3,330,000 3,050,000 2,795,000 2,550,000 2,310,000 2,075,000 1,845,000
337 2017A Special Assessment 4,665,000 9/14/2017 2/1/2033 2.00-3.00%- 4,665,000 4,665,000 4,250,000 3,920,000 3,595,000 3,280,000 2,965,000
2020A Facility Bonds (Potential Future Debt)6,000,000 1/1/2020 1/1/2035 3.00%- - - - 6,000,000 5,600,000 5,200,000 4,800,000
Total G.O. Tax Bonds 35,445,940 15,900,940 18,600,000 17,260,000 15,560,000 19,985,000 18,045,000 16,150,000 14,280,000
Total Government-Type 35,445,940$ 15,900,940$ 18,600,000$ 17,260,000$ 15,560,000$ 19,985,000$ 18,045,000$ 16,150,000$ 14,280,000$
Population 22,855 22,855 22,967 23,080 23,193 23,307 23,421 23,536
Debt Per Capita - total 696$ 814$ 752$ 674$ 862$ 774$ 690$ 607$
City of Crystal, Minnesota
Outstanding Debt Schedule
For the Years Ended December 31, 2016 and 2017 (Actual) and 2018 to 2023 (Estimated)
42
2018 2019 2020 2021 2022 2023
Year to Estimated Estimated Estimated Estimated Estimated Estimated
Department Replace Item Cost Amounts Amounts Amounts Amounts Amounts Amounts
City Buildings 2018 City Hall - office cubes and desks 100,000$ 100,000$ -$ -$ -$ -$ -$
City Buildings 2018 City Hall - replace fire alarm panel 2,000 2,000 - - - - -
City Buildings 2018 City Hall & CCC - front end UNC for HVAC system 33,000 33,000 - - - - -
City Buildings 2018 City Hall - Chamber window film/lights 7,500 7,500 - - - - -
City Buildings 2018 Fire - South - replace water heater 7,000 7,000 - - - - -
City Buildings 2018 Fire - South - rehab stairway to roof 7,000 7,000 - - - - -
City Buildings 2018 Fire - North - tuckpoint walls 5,000 5,000 - - - - -
City Buildings 2018 Water walk cargo net 7,000 7,000 - - - - -
City Buildings 2018 Replace pool heaters 20,000 20,000 - - - - -
City Buildings 2018 Extend irrigation system 15,000 15,000 - - - - -
City Buildings 2018 Add windows and screens to louvers of pool building 20,000 20,000 - - - - -
City Buildings 2018 Update entryway of pool building 200,000 200,000 - - - - -
City Buildings 2018 Rehab/recoat pool building floor 40,000 40,000 - - - - -
City Buildings 2018 Repair tile and plaster inside pool 15,000 15,000 - - - - -
City Buildings 2018 Umbrella and/or fabric replacement program 33,000 33,000 - - - - -
City Buildings 2018 Skylight/Roof renovation 145,000 145,000 - - - - -
City Buildings 2018 Replace LCD projector and add smart board 8,000 8,000 - - - - -
City Buildings 2018 Replace convection ovens (2)10,000 10,000 - - - - -
City Buildings 2018 Activity room - reface cabinets 5,000 5,000 - - - - -
City Buildings 2018 Replace Community Center lighted marquee 40,000 40,000 - - - - -
City Buildings 2018 Front desk security/update 20,000 20,000 - - - - -
City Buildings 2019 2019 Capital requests 307,000 - 307,000 - - - -
City Buildings 2019 Repair/repaint east side of City Hall 24,000 - 24,000 - - - -
City Buildings 2019 Paint South Fire station 32,000 - 32,000 - - - -
City Buildings 2019 Replace service doors at South fire station 10,000 - 10,000 - - - -
City Buildings 2019 Replace service doors at PD lower lot 10,000 - 10,000 - - - -
City Buildings 2019 Replace tube (bay area) heaters at north station 6,000 - 6,000 - - - -
City Buildings 2019 Replace irrigation system at north fire station 10,000 - 10,000 - - - -
City Buildings 2019 Replace 'Teacup' Water Feature 25,000 - 25,000 - - - -
City Buildings 2019 Paint Bridge & Diving Board 30,000 - 30,000 - - - -
City Buildings 2019 Heater #2 (pool water)20,000 - 20,000 - - - -
City Buildings 2019 LED Lights - Gyms/storage/restrooms 26,500 - 26,500 - - - -
City Buildings 2019 Painting Mtg. rooms, hallway, etc.8,000 - 8,000 - - - -
City Buildings 2019 Landscaping on SE side 15,000 - 15,000 - - - -
City Buildings 2019 Temp./Light Controls - gyms 24,000 - 24,000 - - - -
City Buildings 2020 City Hall Furniture / Remodel 110,000 - - 110,000 - - -
City Buildings 2020 2020 Capital requests 10,000 - - 10,000 - - -
City Buildings 2020 Generator for City Hall 225,000 - - 225,000 - - -
City Buildings 2020 Replace tube (bay area) heaters at north station 6,000 - - 6,000 - - -
City Buildings 2020 Re-Landscape City Hall south and west sides 20,000 - - 20,000 - - -
City Buildings 2020 City Hall fire alarm system upgrade 9,000 - - 9,000 - - -
City Buildings 2020 Coat Zero Depth Slide 8,000 - - 8,000 - - -
City Buildings 2020 Irrigation for Front of Building 15,000 - - 15,000 - - -
City Buildings 2020 Gazebo for Bday Party Rental 15,000 - - 15,000 - - -
Alternative A
City of Crystal, Minnesota
Capital Improvement Plan - Building Fund 408/625
Schedule of Planned Capital Outlay 2018 to 2023
43
Alternative A
2018 2019 2020 2021 2022 2023
Year to Estimated Estimated Estimated Estimated Estimated Estimated
Department Replace Item Cost Amounts Amounts Amounts Amounts Amounts Amounts
City Buildings 2020 LED Lights - Office/Meeting Rooms 25,500$ -$ -$ 25,500$ -$ -$ -$
City Buildings 2020 Bask. Hoop Safety Straps/Maint 10,000 - - 10,000 - - -
City Buildings 2020 Meeting Room Window Treatments 9,000 - - 9,000 - - -
City Buildings 2020 Entryway Mats 12,000 - - 12,000 - - -
City Buildings 2020 Temp./Light Controls (Kitchen/Sr.)12,000 - - 12,000 - - -
City Buildings 2020 Temp./Light Controls (Office/Mtg.)10,000 - - 10,000 - - -
City Buildings 2020 Police Department expansion 10,000,000 - - 10,000,000 - - -
City Buildings 2021 Replace roof at south fire station 90,000 - - - 90,000 - -
City Buildings 2021 Add roof access to south fire station 7,000 - - - 7,000 - -
City Buildings 2021 Pool Umbrella Fabric 15,000 - - - 15,000 - -
City Buildings 2021 New Water Feature 25,000 - - - 25,000 - -
City Buildings 2021 Parking Lot Improvements 140,000 - - - 140,000 - -
City Buildings 2021 Parking Lot / Building Lights 40,000 - - - 40,000 - -
City Buildings 2022 Replace council chambers carpet 15,000 - - - - 15,000 -
City Buildings 2022 Replace generator at north fire station 26,000 - - - - 26,000 -
City Buildings 2022 Replace generator at south fire station 26,000 - - - - 26,000 -
City Buildings 2022 Pool Cargo Net 8,000 - - - - 8,000 -
City Buildings 2022 Replace Building Louvers 50,000 - - - - 50,000 -
City Buildings 2022 Dishwasher 18,000 - - - - 18,000 -
City Buildings 2022 Replace Floor Scrubber 15,000 - - - - 15,000 -
City Buildings 2023 Replace City Hall cubicles 75,000 - - - - - 75,000
City Buildings 2023 Replace City Hall carpet 15,000 - - - - - 15,000
City Buildings 2023 New Water Feature 25,000 - - - - - 25,000
City Buildings 2023 Replace Water Walk Pads 15,000 - - - - - 15,000
City Buildings 2023 Replace Sand in Filters 10,000 - - - - - 10,000
City Buildings 2023 Entrance Fascade 150,000 - - - - - 150,000
City Buildings 2023 Air Handler (Office & Mtg Rooms)40,000 - - - - - 40,000
741,518$ 549,519$ 10,498,520$ 319,021$ 160,022$ 332,023$
Schedule of Planned Capital Outlay 2018 to 2023 (Continued)
City of Crystal, Minnesota
Capital Improvement Plan - Building Fund 408/625
44
Alternative A
2018 2019 2020 2021 2022 2023
Estimated Estimated Estimated Estimated Estimated Estimated
Amounts Amounts Amounts Amounts Amounts Amounts
Revenues
Property taxes (2% increase, annually, beginning in 2019)574,400$ 585,888$ 597,606$ 609,558$ 621,749$ 634,184$
Internal charges - 276,302 288,250 302,663 317,796 333,685
Interest on investments 6,446 28,407 34,622 1,527 10,015 20,300
Intergovernmental revenue (local government aid, 0% increase projected)- 556,756 556,756 556,756 556,756 556,756
Miscellaneous - - - - - -
Total Revenues 580,846 1,447,353 1,477,234 1,470,503 1,506,316 1,544,925
Expenditures
Personnel expenses - 276,302 288,250 302,663 317,796 333,685
Capital outlay
Parks & Recreation 741,518 549,519 10,498,520 319,021 160,022 332,023
Total Expenditures 741,518 825,821 10,786,770 621,684 477,818 665,708
Excess (Deficiency) of Revenues
Over (Under) Expenditures (160,672) 621,532 (9,309,536) 848,820 1,028,498 879,217
Other Financing Sources
Bond proceeds - - 6,000,000 - - -
Transfers in 2,356,742 - - - - -
Total Other Financing Sources 2,356,742 - 6,000,000 - - -
Net Change in Fund Balances 2,196,070 621,532 (3,309,536) 848,820 1,028,498 879,217
Fund Balances, January 1 644,615 2,840,685 3,462,217 152,681 1,001,500 2,029,998
Fund Balances, December 31 2,840,685$ 3,462,217$ 152,681$ 1,001,500$ 2,029,998$ 2,909,215$
City of Crystal, Minnesota
Capital Improvement Plan - Building Fund 408/625
Schedule of Projected Revenue, Expenditures and Debt
Capital Project Fund Projected Activity
45
Alternative A
2018 2019 2020 2021 2022 2023
Estimated Estimated Estimated Estimated Estimated Estimated
Amounts Amounts Amounts Amounts Amounts Amounts
Beginning Balance -$ -$ -$ -$ 29,000$ 57,400$
Revenue
Property taxes - - - 609,000 596,400 583,800
Interest - - - - - -
Other - - - - - -
Total Revenue - - - 609,000 596,400 583,800
Expenditures
Principal - - - 400,000 400,000 400,000
Interest - - - 180,000 168,000 156,000
Total Expenditures - - - 580,000 568,000 556,000
Ending Balance -$ -$ -$ 29,000$ 57,400$ 85,200$
Schedule of Projected Revenue, Expenditures and Debt (Continued)
Debt Service Fund Related Activity
City of Crystal, Minnesota
Capital Improvement Plan - Building Fund 408/625
46
A ppendix B
47
City of Crystal, Minnesota
Schedule of Property Taxes Levied and Tax Rates
For the Years Ended December 31, 2017 and 2018 (Actual) and 2019 to 2023 (Estimated)
Alternative B
2017 2018 2019 2020 2021 2022 2023
Actual Actual Estimated Estimated Estimated Estimated Estimated
Amounts Amounts Amounts Amounts Amounts Amounts Amounts
Property Taxes Levied for General Purposes
100 General 8,657,000$ 9,436,779$ 9,641,249$ 10,266,584$ 10,574,582$ 10,891,819$ 11,218,574$
220 EDA/HRA Funds 277,200 277,200 282,744 288,399 294,167 300,050 306,051
415 Street Capital 163,600 163,600 110,144 116,950 121,628 126,493 131,553
235 PERF Fund 137,400 151,900 154,938 158,037 161,197 164,421 167,710
405 PIR Fund 266,220 301,210 - - - - -
408/625 Building Fund 574,400 574,400 585,888 1,138,903 1,719,568 2,329,267 2,969,451
420 Park Improvements - - 248,310 358,914 476,359 593,804 713,804
615 Fleet - - 85,680 86,537 87,402 88,276 89,159
620 Information Technology - - 159,179 159,902 161,501 163,116 164,747
Subtotal 10,075,820 10,905,089 11,268,132 12,574,225 13,596,404 14,657,247 15,761,048
Property Taxes Levied for Debt Service
327/420 2005 Pool Bonds 212,000 - - - - - -
3XX/408 2020 Facility Bonds (Potential future levy)- - - - - - -
Subtotal 212,000 - - - - - -
Total Taxes Levied 10,287,820 10,905,089 11,268,132 12,574,225 13,596,404 14,657,247 15,761,048
Less: Value of Market Value Levies (489,200) (277,200) (282,744) (288,399) (294,167) (300,050) (306,051)
Less: Distribution from fiscal disparities (2,267,618) (2,186,657) (2,295,990) (2,410,789) (2,531,329) (2,657,895) (2,790,790)
City Net Levy 7,531,002$ 8,441,232$ 8,689,398$ 9,875,037$ 10,770,909$ 11,699,301$ 12,664,207$
Tax Capacity
Personal and Real Estate 16,716,393$ 18,459,975$ 19,382,974$ 20,352,122$ 21,369,729$ 22,438,215$ 23,560,126$
Other assumed net growth factors - - - - - - -
Less: Contribution to fiscal disparities (1,082,015) (1,079,088) (1,133,042) (1,189,695) (1,249,179) (1,311,638) (1,377,220)
Less: Tax Increment (248,944) (212,599) (212,599) (212,599) (212,599) (212,599) (212,599)
Adjusted net tax capacity 15,385,434$ 17,168,288$ 18,037,332$ 18,949,829$ 19,907,950$ 20,913,978$ 21,970,307$
48
City of Crystal, Minnesota
Schedule of Property Taxes Levied and Tax Rates (Continued)
For the Years Ended December 31, 2017 and 2018 (Actual) and 2019 to 2023 (Estimated)
Alternative B
2017 2018 2019 2020 2021 2022 2023
Actual Actual Estimated Estimated Estimated Estimated Estimated
Amounts Amounts Amounts Amounts Amounts Amounts Amounts
Tax Rates
General 42.33%43.66%42.28%43.55%43.01%42.44%41.84%
Capital levies 5.58%5.51%5.20%7.89%10.44%12.87%15.19%
Scheduled debt levies 1.04%0.00%0.00%0.00%0.00%0.00%0.00%
Total City 48.949%49.168%48.175%52.111%54.104%55.940%57.642%
Total EDA Tax Rate 1.385%1.274%1.250%1.225%1.201%1.177%1.152%
Population 22,855 22,967 23,080 23,193 23,307 23,307 23,421
Taxes per Capita 450$ 475$ 488$ 542$ 583$ 629$ 673$
Median Home Value (Jan 2)166,000$ 182,000$ 196,000$ 205,800$ 216,090$ 226,895$ 238,239$
Median Home Taxes (from city)703 792 850 975 1,073 1,175 1,282
% change from prior year $'s N/A 13%7%15%10%21%19%
Tax Levy ($)
General 8,657,000$ 9,436,779$ 9,641,249$ 10,266,584$ 10,574,582$ 10,891,819$ 11,218,574$
Capital 1,141,620 1,191,110 1,184,960 1,859,340 2,566,155 3,302,262 4,071,676
Economic Development Authority 277,200 277,200 282,744 288,399 294,167 300,050 306,051
Debt service 212,000 - - - - - -
Tax Levy (%)
General 84%87%86%82%78%74%71%
Capital 11%11%11%15%19%23%26%
Economic Development Authority 3%3%3%2%2%2%2%
Debt service 2%0%0%0%0%0%0%
49
City of Crystal, Minnesota
Schedule of Annual Fund Cash Balances
For the Years Ended December 31, 2016 and 2017 (Actual) and 2018 to 2023 (Estimated)
Alternative B
2016 2017 2018 2019 2020 2021 2022 2023
Actual Actual Estimated Estimated Estimated Estimated Estimated Estimated
Amounts Amounts Amounts Amounts Amounts Amounts Amounts Amounts Trend
Government-Type
General Operations
101 General 7,426,395$ 7,380,956$ 7,429,826$ 7,429,826$ 7,429,825$ 6,941,339$ 5,935,057$ 4,380,352$
Special Revenue
220 Economic Development Authority 3,758,615 3,190,635 3,203,865 2,174,657 2,091,753 2,003,477 1,909,612 1,809,930
*206-210 TIF Districts Special Revenue 1,795,278 1,817,122 1,835,293 1,853,646 1,872,183 1,890,904 1,909,813 1,928,912
*240-245 Special Projects 86,462 98,913 99,902 99,903 99,904 99,905 99,906 99,907
Subtotal 5,640,355 5,106,670 5,139,060 4,128,206 4,063,840 3,994,287 3,919,332 3,838,749
Debt Service
329-336 Debt Service 5,731,734 5,282,301 5,219,104 5,164,999 5,119,733 5,077,749 5,044,073 5,044,073
Capital Projects
405 Capital Improvement Revolving 8,440,754 8,229,232 - - - - - -
415 Street Reconstruction 2,521,416 6,049,965 7,643,645 6,765,226 6,143,478 5,562,380 4,723,994 3,847,335
409 Fire Equipment Revolving 585,190 - - - - - - -
235 Police Equipment Revolving 3,109,809 3,080,805 2,937,313 2,889,424 2,855,655 2,834,509 2,828,076 2,787,866
410 Street Maintenance 1,587,990 1,696,364 - - - - - -
408/625 Building 138,213 644,615 2,840,685 3,462,217 4,693,978 6,698,221 9,491,204 12,780,300
420 Park Improvement - 210,780 1,739,617 807,323 663,311 615,303 659,260 803,656
*404 Cable TV Equipment 69,757 108,477 109,562 110,657 111,764 112,882 114,010 115,151
Subtotal 16,314,916 19,375,623 12,430,137 10,572,631 9,774,208 9,125,074 8,325,340 7,554,009
Total - Governmental-type Funds 35,113,400 37,145,550 30,218,128 27,295,663 26,387,605 25,138,448 23,223,802 20,817,183
Internal Service
620 Information Technology - - 243,971 99,943 (61,393) (201,568) (225,555) (343,627)
615 Fleet - - 2,376,993 1,833,443 1,298,314 969,699 536,672 171,198
*605 Self Insurance 960,549 898,302 907,285 916,358 925,521 934,777 944,124 953,566
Total - Internal Service-type Funds 960,549 898,302 3,528,248 2,849,744 2,162,442 1,702,908 1,255,242 781,136
50
City of Crystal, Minnesota
Schedule of Annual Fund Cash Balances (Continued)
For the Years Ended December 31, 2016 and 2017 (Actual) and 2018 to 2023 (Estimated)
Alternative B
2016 2017 2018 2019 2020 2021 2022 2023
Actual Actual Estimated Estimated Estimated Estimated Estimated Estimated
Amounts Amounts Amounts Amounts Amounts Amounts Amounts Amounts Trend
Business-Type
Enterprise Funds
505 Water 438,599$ 953,039$ 1,472,446$ 1,403,899$ 1,416,770$ 1,420,711$ 1,537,371$ 1,619,699$
510 Sewer 2,312,443 2,121,076 1,985,036 1,652,259 1,279,982 965,541 660,095 364,338
515 Storm Drainage 379,568 787,914 1,384,970 592,250 1,198,320 1,092,958 1,220,675 1,685,509
520 Street Lights 387,731 488,501 586,061 643,390 724,559 810,026 900,009 (5,265)
*525 Recycling 109,314 120,021 121,221 122,433 123,658 124,894 126,143 127,405
Total - Business-type Funds 3,627,655 4,470,551 5,549,734 4,414,232 4,743,288 4,414,131 4,444,293 3,791,687
Agency Fund
*250 Hennepin Recycling Group 1,704,244 1,399,536 1,413,531 1,427,667 1,441,943 1,456,363 1,470,926 1,485,636
Grand Total - City 41,544,061$ 44,558,554$ 43,550,326$ 39,449,522$ 38,887,960$ 37,753,351$ 36,504,662$ 33,906,062$
*Annual growth in fund balance of 1% assumed
Trend indicator
Adequate for reserve levels
Adequate as of 2016 but decreasing balances, watch
Below targeted reserve levels and should have a plan to address
The fund has events in the future that need addressing now
51
Alternative B
2016 2017 2018 2019 2020 2021 2022 2023
Original Issue Maturity Interest Actual Actual Estimated Estimated Estimated Estimated Estimated Estimated
Fund Issue Issue Date Date Rate Balance Balance Balance Balance Balance Balance Balance Balance
Government-Type
General Obligation Bonds
327 2005B General Obligation Aquatic Center Bond 2,395,000$ 9/1/2005 2/1/2020 3.50-4.00%%765,000$ -$ -$ -$ -$ -$ -$ -$
326 2005A Special Assessment 1,440,000 9/14/2005 2/1/2021 3.50-4.00%- - - - - - - -
328 2006A Special Assessment 1,855,000 6/29/2006 2/1/2022 3.75-4.20%- - - - - - - -
329 2008A Special Assessment 2,190,000 8/1/2008 2/1/2024 3.50-4.35%1,045,000 900,000 760,000 625,000 495,000 365,000 240,000 120,000
330 2009A Special Assessment 3,360,000 7/21/2009 2/1/2030 2.00-4.50%2,200,000 2,020,000 1,845,000 1,675,000 1,505,000 1,340,000 1,180,000 1,020,000
331 2013B Street Reconstruction 85,940 85,940 - - - - - - -
332 2011A Special Assessment 1,705,000 7/19/2011 2/1/2027 0.50-3.55%1,155,000 1,030,000 910,000 795,000 685,000 575,000 470,000 370,000
333 2012A Special Assessment 2,635,000 7/16/2013 2/1/2028 0.50-3.55%2,000,000 1,805,000 1,615,000 1,430,000 1,250,000 1,080,000 915,000 750,000
334 2013A Special Assessment 3,235,000 6/17/2015 2/1/2029 0.50-3.55%2,770,000 2,525,000 2,285,000 2,050,000 1,825,000 1,605,000 1,390,000 1,180,000
335 2015A Special Assessment 2,550,000 7/16/2015 2/1/2031 2.50-3.00%2,550,000 2,325,000 2,130,000 1,940,000 1,755,000 1,575,000 1,400,000 1,230,000
336 2016A Special Assessment 3,330,000 8/25/2016 2/1/2032 2.00-2.50%3,330,000 3,330,000 3,050,000 2,795,000 2,550,000 2,310,000 2,075,000 1,845,000
337 2017A Special Assessment 4,665,000 9/14/2017 2/1/2033 2.00-3.00%- 4,665,000 4,665,000 4,250,000 3,920,000 3,595,000 3,280,000 2,965,000
Total G.O. Tax Bonds 29,445,940 15,900,940 18,600,000 17,260,000 15,560,000 13,985,000 12,445,000 10,950,000 9,480,000
Total Government-Type 29,445,940$ 15,900,940$ 18,600,000$ 17,260,000$ 15,560,000$ 13,985,000$ 12,445,000$ 10,950,000$ 9,480,000$
Population 22,855 22,855 22,967 23,080 23,193 23,307 23,421 23,536
Debt Per Capita - total 696$ 814$ 752$ 674$ 603$ 534$ 468$ 403$
City of Crystal, Minnesota
Outstanding Debt Schedule
For the Years Ended December 31, 2016 and 2017 (Actual) and 2018 to 2023 (Estimated)
52
Alternative B
2018 2019 2020 2021 2022 2023
Year to Estimated Estimated Estimated Estimated Estimated Estimated
Department Replace Item Cost Amounts Amounts Amounts Amounts Amounts Amounts
City Buildings 2018 City Hall - office cubes and desks 100,000$ 100,000$ -$ -$ -$ -$ -$
City Buildings 2018 City Hall - replace fire alarm panel 2,000 2,000 - - - - -
City Buildings 2018 City Hall & CCC - front end UNC for HVAC system 33,000 33,000 - - - - -
City Buildings 2018 City Hall - Chamber window film/lights 7,500 7,500 - - - - -
City Buildings 2018 Fire - South - replace water heater 7,000 7,000 - - - - -
City Buildings 2018 Fire - South - rehab stairway to roof 7,000 7,000 - - - - -
City Buildings 2018 Fire - North - tuckpoint walls 5,000 5,000 - - - - -
City Buildings 2018 Water walk cargo net 7,000 7,000 - - - - -
City Buildings 2018 Replace pool heaters 20,000 20,000 - - - - -
City Buildings 2018 Extend irrigation system 15,000 15,000 - - - - -
City Buildings 2018 Add windows and screens to louvers of pool building 20,000 20,000 - - - - -
City Buildings 2018 Update entryway of pool building 200,000 200,000 - - - - -
City Buildings 2018 Rehab/recoat pool building floor 40,000 40,000 - - - - -
City Buildings 2018 Repair tile and plaster inside pool 15,000 15,000 - - - - -
City Buildings 2018 Umbrella and/or fabric replacement program 33,000 33,000 - - - - -
City Buildings 2018 Skylight/Roof renovation 145,000 145,000 - - - - -
City Buildings 2018 Replace LCD projector and add smart board 8,000 8,000 - - - - -
City Buildings 2018 Replace convection ovens (2)10,000 10,000 - - - - -
City Buildings 2018 Activity room - reface cabinets 5,000 5,000 - - - - -
City Buildings 2018 Replace Community Center lighted marquee 40,000 40,000 - - - - -
City Buildings 2018 Front desk security/update 20,000 20,000 - - - - -
City Buildings 2019 2019 Capital requests 307,000 - 307,000 - - - -
City Buildings 2019 Repair/repaint east side of City Hall 24,000 - 24,000 - - - -
City Buildings 2019 Paint South Fire station 32,000 - 32,000 - - - -
City Buildings 2019 Replace service doors at South fire station 10,000 - 10,000 - - - -
City Buildings 2019 Replace service doors at PD lower lot 10,000 - 10,000 - - - -
City Buildings 2019 Replace tube (bay area) heaters at north station 6,000 - 6,000 - - - -
City Buildings 2019 Replace irrigation system at north fire station 10,000 - 10,000 - - - -
City Buildings 2019 Replace 'Teacup' Water Feature 25,000 - 25,000 - - - -
City Buildings 2019 Paint Bridge & Diving Board 30,000 - 30,000 - - - -
City Buildings 2019 Heater #2 (pool water)20,000 - 20,000 - - - -
City Buildings 2019 LED Lights - Gyms/storage/restrooms 26,500 - 26,500 - - - -
City Buildings 2019 Painting Mtg. rooms, hallway, etc.8,000 - 8,000 - - - -
City Buildings 2019 Landscaping on SE side 15,000 - 15,000 - - - -
City Buildings 2019 Temp./Light Controls - gyms 24,000 - 24,000 - - - -
City Buildings 2020 City Hall Furniture / Remodel 110,000 - - 110,000 - - -
City Buildings 2020 2020 Capital requests 10,000 - - 10,000 - - -
City Buildings 2020 Generator for City Hall 225,000 - - 225,000 - - -
City Buildings 2020 Replace tube (bay area) heaters at north station 6,000 - - 6,000 - - -
City Buildings 2020 Re-Landscape City Hall south and west sides 20,000 - - 20,000 - - -
City Buildings 2020 City Hall fire alarm system upgrade 9,000 - - 9,000 - - -
City Buildings 2020 Coat Zero Depth Slide 8,000 - - 8,000 - - -
City Buildings 2020 Irrigation for Front of Building 15,000 - - 15,000 - - -
City Buildings 2020 Gazebo for Bday Party Rental 15,000 - - 15,000 - - -
City of Crystal, Minnesota
Capital Improvement Plan - Building Fund 408/625
Schedule of Planned Capital Outlay 2018 to 2023
53
Alternative B
2018 2019 2020 2021 2022 2023
Year to Estimated Estimated Estimated Estimated Estimated Estimated
Department Replace Item Cost Amounts Amounts Amounts Amounts Amounts Amounts
City Buildings 2020 LED Lights - Office/Meeting Rooms 25,500$ -$ -$ 25,500$ -$ -$ -$
City Buildings 2020 Bask. Hoop Safety Straps/Maint 10,000 - - 10,000 - - -
City Buildings 2020 Meeting Room Window Treatments 9,000 - - 9,000 - - -
City Buildings 2020 Entryway Mats 12,000 - - 12,000 - - -
City Buildings 2020 Temp./Light Controls (Kitchen/Sr.)12,000 - - 12,000 - - -
City Buildings 2020 Temp./Light Controls (Office/Mtg.)10,000 - - 10,000 - - -
City Buildings 2021 Replace roof at south fire station 90,000 - - - 90,000 - -
City Buildings 2021 Add roof access to south fire station 7,000 - - - 7,000 - -
City Buildings 2021 Pool Umbrella Fabric 15,000 - - - 15,000 - -
City Buildings 2021 New Water Feature 25,000 - - - 25,000 - -
City Buildings 2021 Parking Lot Improvements 140,000 - - - 140,000 - -
City Buildings 2021 Parking Lot / Building Lights 40,000 - - - 40,000 - -
City Buildings 2022 Replace council chambers carpet 15,000 - - - - 15,000 -
City Buildings 2022 Replace generator at north fire station 26,000 - - - - 26,000 -
City Buildings 2022 Replace generator at south fire station 26,000 - - - - 26,000 -
City Buildings 2022 Pool Cargo Net 8,000 - - - - 8,000 -
City Buildings 2022 Replace Building Louvers 50,000 - - - - 50,000 -
City Buildings 2022 Dishwasher 18,000 - - - - 18,000 -
City Buildings 2022 Replace Floor Scrubber 15,000 - - - - 15,000 -
City Buildings 2023 Replace City Hall cubicles 75,000 - - - - - 75,000
City Buildings 2023 Replace City Hall carpet 15,000 - - - - - 15,000
City Buildings 2023 New Water Feature 25,000 - - - - - 25,000
City Buildings 2023 Replace Water Walk Pads 15,000 - - - - - 15,000
City Buildings 2023 Replace Sand in Filters 10,000 - - - - - 10,000
City Buildings 2023 Entrance Fascade 150,000 - - - - - 150,000
City Buildings 2023 Air Handler (Office & Mtg Rooms)40,000 - - - - - 40,000
741,518$ 549,519$ 498,520$ 319,021$ 160,022$ 332,023$
Schedule of Planned Capital Outlay 2018 to 2023 (Continued)
City of Crystal, Minnesota
Capital Improvement Plan - Building Fund 408/625
54
Alternative B
2018 2019 2020 2021 2022 2023
Estimated Estimated Estimated Estimated Estimated Estimated
Amounts Amounts Amounts Amounts Amounts Amounts
Revenues
574,400$ 585,888$ 1,138,903$ 1,719,568$ 2,329,267$ 2,969,451$
Internal charges - 276,302 288,250 302,663 317,796 333,685
Interest on investments 6,446 28,407 34,622 46,940 66,982 94,912
Intergovernmental revenue (local government aid, 0% increase projected)- 556,756 556,756 556,756 556,756 556,756
Miscellaneous - - - - - -
Total Revenues 580,846 1,447,353 2,018,531 2,625,927 3,270,801 3,954,804
Expenditures
Personnel expenses - 276,302 288,250 302,663 317,796 333,685
Capital outlay
Parks & Recreation 741,518 549,519 498,520 319,021 160,022 332,023
Total Expenditures 741,518 825,821 786,770 621,684 477,818 665,708
Excess (Deficiency) of Revenues
Over (Under) Expenditures (160,672) 621,532 1,231,761 2,004,243 2,792,983 3,289,096
Other Financing Sources
Bond proceeds - - - - - -
Transfers in 2,356,742 - - - - -
Total Other Financing Sources 2,356,742 - - - - -
Net Change in Fund Balances 2,196,070 621,532 1,231,761 2,004,243 2,792,983 3,289,096
Fund Balances, January 1 644,615 2,840,685 3,462,217 4,693,978 6,698,221 9,491,204
Fund Balances, December 31 2,840,685$ 3,462,217$ 4,693,978$ 6,698,221$ 9,491,204$ 12,780,300$
Property taxes (2% increase based on Building Levy in 2019, 5% levy increase based
on overall levy in in 2020 - 2023)
City of Crystal, Minnesota
Capital Improvement Plan - Building Fund 408/625
Schedule of Projected Revenue, Expenditures and Debt
Capital Project Fund Projected Activity
55
Alternative B
2018 2019 2020 2021 2022 2023
Estimated Estimated Estimated Estimated Estimated Estimated
Amounts Amounts Amounts Amounts Amounts Amounts
Beginning Balance -$ -$ -$ -$ -$ -$
Revenue
Property taxes - - - - - -
Interest - - - - - -
Other - - - - - -
Total Revenue - - - - - -
Expenditures
Principal - - - - - -
Interest - - - - - -
Total Expenditures - - - - - -
Ending Balance -$ -$ -$ -$ -$ -$
Schedule of Projected Revenue, Expenditures and Debt (Continued)
Debt Service Fund Related Activity
City of Crystal, Minnesota
Capital Improvement Plan - Building Fund 408/625
56
CITY OF CRYSTAL, MINNESOTA
FINANCIAL MANAGEMENT PLAN
August 16 , 2018
Prepared by AEM Financial Solutions, LLC.
City of Crystal, Minnesota
Financial Management Plan
Table of Contents
Page No.
Introductory Section
Executive Summary 4
Policy Section
Auditor Independence 7
Budgetary and Financial Control 9
Business Assistance 13
Capital Assets 17
Capital Improvement Program 26
Conduit Debt 28
Contracts 32
Debt Management 38
Fund Balance 40
Interfund Loan 43
Investment 45
Post-issuance Compliance Procedures 56
Exhibit A 59
Exhibit B 60
Exhibit C 63
Revenue 66
Risk Management 68
Tax Abatement 70
Tax Increment Financing 74
2
INTRODUCTORY SECTION
CITY OF CRYSTAL, MINNESOTA FINANCIAL
MANAGEMENT PLAN
AUGUST 16, 2018
3
Honorable Mayor and City Council
City of Crystal
4141 Douglas Drive North
Crystal, MN 55422
Introduction
As requested by the City Council, we have prepared a Financial Management Plan for the City in conjunction with input
from the City Manager and the Senior Leadership Team. A Financial Management Plan is a document that encompasses
all of the City’s major financial policies. The development and maintenance of a Financial Management Plan is an
important part of the overall financial well-being of the City.
We recommend the Financial Management Plan be adopted by Resolution of the City Council. In doing so, the policies
set forth in this Plan will supersede previously adopted financial management policies.
If you have any questions or wish to discuss any of the policies contained in the Financial Management Plan, 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
Minneapolis, Minnesota
August 16, 2018
4
POLICY SECTION
CITY OF CRYSTAL, MINNESOTA FINANCIAL
MANAGEMENT PLAN
AUGUST 16, 2018
5
Auditor Independence
6
City of Crystal, Minnesota Financial Management Plan
Auditor Independence Policy
Adopted by City Council on:
1. In accordance with the Government Accountability Office, the authority on local government audits, in all matters
relating to audit work, the external auditor shall be free both in fact and appearance from personal external and
organizational impairments to independence.
A. The City’s external audit organization shall not be responsible for designing, developing and/or installing the City’s
accounting system or its operating system where this system generates information used in preparing financial
statements for the City of Crystal .
B. External auditors shall not develop a performance measurement system or any other system relied upon in
developing financial statements.
C. The external auditors may prepare draft financial statements, schedules or perform other duties as long as
they are based on management’s direction and the work results in a recommendation to management.
D. Decisions based on the external auditor’s recommendations must be approved by City management.
E. External auditors shall provide routine advice to the City of Crystal and to management to assist them in
activities such as establishing internal controls or implementing audit recommendations and can answer the
technical questions and provide training, however, they may not direct or unduly influence management with
those decisions.
2. Any non-audit work related to tax rulings, arbitrage, attestation, compilation, sales tax audits, counted value audits
and financial report assistance proposed by the auditors must be approved by the City Manager prior to hiring
them.
7
Budgetary and Financial Control
8
City of Crystal, Minnesota Financial Management Plan
Budgetary and Financial Control Policy
Adopted by City Council on:
1. General budgetary and financial control is to be centralized in one department whose functions shall include, but not
be limited to, the following:
A. Budget compilation
B. Budget monitoring
C. Income and expenditure projections
D. Capital improvement financing
E. Risk management (see Risk Management Policy)
F. Screening of Conduit Debt applications (see Conduit Debt Policy)
G. Cash and investment management (see Investment Policy)
H. Monitoring financial data for warning signals or trends
I. Preparation of financial summary reports for key funds at least quarterly
J. Maintain a detailed inventory listing of all material fixed assets so as to adequately ensure proper
accounting of assets.
K. The objective of the financial analysis is to provide the future staffing and operational expenditure
implications.
L. Payroll
M. Accounts Receivable
N. Receipts, Collections and Customer Billing
O. Accounts Payable
2. The City will maintain a program for the investment of funds consistent with the City’s Investment Policy.
3. Operating Budget
A. The City will always adopt a balanced operating budget for the General Fund. A balanced budget is
one in which revenues and other financing sources are equal to expenditures and other financing
uses.
B. The City will pay for current expenditures with current revenues.
C. The City will avoid, if possible, balancing current revenues with funds needed for future expenditures.
D. The City will not budget to accrue future revenues.
E. Excess revenue from a specific fiscal year will be placed into the City’s reserves in a manner
consistent with the City’s fund balance reserve policies.
9
City of Crystal, Minnesota Financial Management Plan
Budgetary and Financial Control Policy (Continued)
F. The City will avoid postponing expenditures, rolling over short-term debt, and using reserves to balance the
operating budget.
G. The Council will adjust for cost of living increase based on market analysis.
H. To protect against unforeseen events, the City Council may budget for and maintain a contingency reserve in
accordance with the City’s fund balance reserve policies.
I. The City may apportion its administrative and general government costs to all its funds as appropriate and
practical. These charges will be identified in the annual budget.
J. The City Council, City Manager and Department Directors will monitor revenues and departmental
expenditures to ensure adherence to budgeted amounts. Budget appropriations are by department total within
each fund rather than by line item (i.e., account.) Budget changes that involve the transfer of appropriations
among accounts only require the approval of the City Manager or designee.
K. The City will also review and update, the schedule of fund balances, reserves and working capital in all
other operating funds of the City and determine adequacy of those money balances, using specified
guidelines and criteria in conjunction with the budgets set annually.
L. The operating budget policies ensure that the City’s annual operating expenditures are consistent with past
expenditures and respond to long-term objectives rather than short-term benefits. The policies allow the City
to maintain stable levels of service, expenditures, and tax levies over time. These policies are most critical to
programs funded with property tax revenue because accommodating large fluctuations in this revenue source
can impose hardship on the citizens.
M. Department Directors will be responsible for administration of their respective Department Budgets and are
required to submit requests for any required budget adjustments, such as supplemental appropriations, to the
Finance Director and City Manager before the program incurs cost overruns for the annual budget period.
N. Primary responsibility in the management of budgeted funds lies with the Department Directors. Such
management includes, but is not limited to, reviewing expenditures before authorization, reviewing monthly
financial reports to detect errors and assess progress, and staying within expense or expenditure budget
authorization. All costs incurred must be reasonable and necessary. Department Directors shall be
responsible for contacting the Finance Director or City Manager should there be any questions regarding
financial management or if the issue or concern is related to internal controls. The Finance Director and City
Manager will routinely monitor overall budget operating progress throughout the year.
O. The City will not use one-time accounting principle changes to balance the budget for any fund.
P. The City will provide ample time and opportunity for public input into its budget deliberations each year.
Q. Council approval is required for budget changes that involve a transfer of appropriations between funds or
from contingency accounts. The budget changes can be made at any Council meeting.
R. The modified accrual basis will be used for all governmental funds in the budget. Under this basis,
revenues are recognized in the accounting period they become available and measurable. Expenditures are
recognized in the accounting period in which the liability is incurred, if measurable. The accrual basis will
be used for the budgets of the enterprise funds in the operating budget. Under this basis, revenues are
recognized in the accounting period that they are earned and measurable. Expenses are recognized in the
accounting period that they are incurred, if measurable. The basis of budgeting is the same as the basis of
accounting used in the City’s audited financial statements.
10
City of Crystal, Minnesota Financial Management Plan
Budgetary and Financial Control Policy (Continued)
4. The City will establish and maintain the highest standard of accounting practices, in conformity with Generally
Accepted Accounting Principles (GAAP) and with recommended best practices as promulgated by the Government
Finance Officers Association (GFOA).
5. The City will arrange for an annual audit of all funds and account types by independent certified public accountants
qualified and licensed to issue such reports.
6. The City will strive to obtain each year the annual GFOA Certificate of Achievement for Excellence in Financial
Reporting.
7. Regular monthly reports will present a summary of financial activity by major type of funds as compared to budget.
Department Directors will review monthly reports comparing actual revenues and expenditures to the budgeted
amounts.
11
Business Assistance
12
City of Crystal, Minnesota Financial Management Plan
Business Assistance Policy
Adopted by City Council on:
Adopted by EDA on:
1. Purpose
A. The purpose of this policy is to establish the City of Crystal and the Crystal Economic Development Authority’s
(City/EDA) position as it relates to the use of Tax Increment Financing, Tax Abatement and other business
assistance programs for private development. This policy shall be used as a guide in processing and reviewing
applications requesting business assistance.
B. The City shall have the option of amending or waiving sections of this policy when determined necessary or
appropriate. Minnesota Statutes 116J.994, Subd. 2, allows the City to deviate from its criteria by documenting in
writing the reason for the deviation and attaching a copy of the document to its next annual report to the department.
2. Statutory Limitations
In accordance with the City/EDA Business Assistance Policy, assistance requests must comply with applicable State
Statutes.
3. Public Purpose Requirement
All business subsidies must meet a public purpose as provided in Section 5 that may include, but must not be limited to,
increasing the property tax base. All business subsidy recipients must enter into a business subsidy agreement with the
City and EDA that complies with Minnesota Statutes, Section 116J.994, subd. 3.
4. Eligible Uses For The Receipt Of Business Assistance
As a matter of adopted policy, the City/EDA will consider using a business assistance tool to assist private developments
only in those circumstances in which the proposed private projects meet one or more of the following uses:
A. To meet the following housing related uses:
o To provide a diversity of housing not currently provided by the private market.
o To provide a variety of housing ownership alternatives and housing choices.
o To promote affordable housing for low or moderate income individuals.
o To promote neighborhood stabilization and revitalization by the removal of blight and the upgrading in
existing housing stock in residential areas.
B. To remove blight and encourage redevelopment in the commercial and industrial areas of the City in order to
encourage high levels of property maintenance and private reinvestment in those areas; including façade
improvement.
C. To increase the tax base of the City in order to ensure the long-term ability of the City to provide adequate
services for its residents while lessening the reliance on residential property tax.
D. To retain local jobs, increase the local job base, and provide diversity in that job base.
E. To increase the local business and industrial market potential of the City of Crystal.
F. To encourage additional unsubsidized private development in the area, either directly, or through
secondary "spinoff" development.
13
City of Crystal, Minnesota Financial Management Plan
Business Assistance Policy (Continued)
G. To offset increased costs of redevelopment, over and above the costs that a developer would incur in normal
development.
H. To accelerate the development process and to achieve development on sites which would not be
developed without this assistance.
5. Business Assistance Project Approval Criteria
All new projects approved by the City/EDA should meet the following mandatory minimum approval criteria. However, it
should not be presumed that a project meeting these criteria will automatically be approved. Meeting these criteria creates
no contractual rights on the part of any potential developer.
A. The assistance shall be provided within applicable state legislative restrictions, State Auditor interpretation,
debt limit guidelines, and other appropriate financial requirements and policies.
B. The project should meet one or more of the uses identified in Section 4, Eligible Uses for the Receipt of
Business Assistance.
C. The project must be in accord with the Comprehensive Plan and Zoning Ordinances, or required changes to
the Comprehensive Plan and Zoning Ordinances which would accommodate the project must be under active
consideration by the City at the time of approval.
D. The assistance will not be provided to projects that have the financial feasibility to proceed without the benefit of
the assistance. Assistance will not be provided solely to broaden a developer's profit margins on a project. Prior
to consideration of a business assistance request, the City may undertake an independent underwriting of the
project to help ensure that the request for assistance is consistent as set forth in Appendix A.
E. Prior to approval of business assistance, the developer shall provide any required market and financial feasibility
studies, appraisals, soil boring, information provided to private lenders for the project, and other information or
data that the City or its financial consultants may require in order to proceed with an independent underwriting.
F. Any developer requesting business assistance should be able to demonstrate past successful general
development capability as well as specific capability in the type and size of development proposed.
G. It is desirable if the developer retains ownership of the project at least long enough to complete construction, to
stabilize its occupancy, to establish the project management, and to initiate repayment of the business
assistance.
H. The level of business assistance funding should be reduced to the lowest possible level and least amount of
time by maximizing the use of private debt and equity financing first, and then using other funding sources or
income producing vehicles that can be structured into the project financing, prior to using additional business
assistance funding.
6. Business Assistance Project Evaluation Criteria
A. All projects will be evaluated by the City/EDA on the following criteria (as set forth in Section 5C) for comparison
with other proposed business assistance projects reviewed by the City and for comparison with other subsidy
standards (where appropriate). It is realized that changes in local markets, costs of construction, and interest
rates may cause changes in the amounts of business assistance subsidies that a given project may require at
any given time.
B. Some criteria, by their very nature, must remain subjective. However, wherever possible, "benchmark" criteria
have been established for review purposes. The fact that a given proposal meets one or more "benchmark"
criteria does not mean that it is entitled to funding under this policy, but rather that the City is in a position to
proceed with evaluations of (and comparisons between) various business assistance proposals, using uniform
standards whenever possible.
14
City of Crystal, Minnesota Financial Management Plan
Business Assistance Policy (Continued)
C. Following are the evaluation criteria that will be used by the City/EDA:
o All proposals should, in the opinion of the City/EDA, optimize the private development potential of a site.
o All proposals should, in the opinion of the City/EDA, create the highest feasible number of jobs on the
site. All proposals will meet the Business Assistance Project Approval Criteria established by the
City/EDA.
o When considering business assistance for a relocating or new business request, the City/EDA should
weigh the impact on existing competition/businesses which are already established in the community.
o All proposals should, in the opinion of the City/EDA, create the highest possible ratio of property taxes paid
before and after redevelopment. Given the different assessment circumstances in the City, this ratio will
vary widely.
o Proposals should usually not be used to support speculative industrial, commercial, and office projects.
o Assistance will usually not be used in a project that involves an excessive land and/or property price.
o All business assistance projects will need to meet the "but for" test. Assistance will not be used unless the
need for the City/EDA’s economic participation is sufficient that, without that assistance the project could
not proceed in the manner as proposed.
o Business assistance will not be used when the developer's credentials, in the sole judgment of the City/EDA,
are inadequate due to past track record relating to: completion of projects, general reputation and/or
bankruptcy, or other problems or issues considered relevant by the City/EDA.
o Business assistance will not normally be used for projects that would generate significant environmental
problems in the opinion of the local, state, or federal governments.
o Business assistance funding should not be provided to those projects that fail to meet good public policy
criteria as determined by the City/EDA, including: poor project quality; projects that are not in accordance
with the Comprehensive Plan, zoning, redevelopment plans, and city policies; projects that provide no
significant improvement to surrounding land uses, the neighborhood, and/or the City in the opinion of
City/EDA; projects that do not have significant new, or retained, employment; projects that do not meet
financial feasibility criteria established by the City/EDA; and projects that do not provide the highest and best
desired use for the property.
o Applicants may refer to the following related policies, Tax Increment Financing Policy and Tax Abatement
Policy, and the Forms Section.
15
Capital Assets
16
City of Crystal, Minnesota Financial Management Plan
Capital Assets Policy
Purpose
It is the policy of the City of Crystal to maintain appropriate procedures regarding the procurement, management, and
disposal of all capital assets in accordance with Governmental Accounting Standards Board Statement No. 34 (GASB 34).
The Capital Assets Policy addresses classes of assets, determination of useful lives, and calculation of depreciation.
1. Define Capital Assets and Capitalization Thresholds
Capital assets include land, land improvements, buildings, building improvements, construction in progress, machinery
and equipment, vehicles, infrastructure, easements, works of art and historical treasurers acquired by the City for use in
providing services to its citizens. A capital asset is to be reported and depreciated in government-wide financial statements.
In the government- side financial statements, assets that are not capitalized are expended in the year of acquisition.
Infrastructure assets are long-lived capital assets that can be preserved for a significant number of years, greater than
most capital assets that are stationary in nature. Examples include roads, bridges, tunnels, drainage systems, water and
sewer systems and dams. Infrastructure assets do not include buildings, driveways, parking lots or any examples given
above that are incidental to property or access to the property.
Another criterion for recording capital assets is capital-related debt. Capitalize capital assets purchased with debt proceeds
and depreciate over their estimated useful life. Capitalizing these assets will minimize the potential of reporting negative
net assets in the statement of net assets. In most cases, these assets will meet the thresholds and guidelines for recording
as a capital asset.
For financial reporting purposes only, the City will classify and establish capitalization thresholds for each asset class as
follows:
Capital Asset Classification Capitalization Threshold
Land and land improvements; $1
Land Improvements; $25,000
Other improvements; $25,000
Building and building improvements; $25,000
Machinery and equipment; $5,000
Vehicles; $5,000
Infrastructure; $50,000
Construction-in-progress; Accumulate all costs and capitalize if over $25,000
when complete.
Other assets; $5,000
All information in regards to the City asset acquisition, retention, and disposal is maintained and reported to the finance
department.
2. Reporting Capital Assets
Report capital assets at historical costs, which includes most costs necessary to placing a capital asset into its intended
use or state of operation. Historical cost includes the vendor’s invoice, the value of any trade-in or allowance, sales tax,
initial installation cost (excluding in-house labor), modifications, attachments, accessories or apparatus; and ancillary
charges such as freight and transportation charges, site preparation costs, and professional fees.
In the event the historical cost of a capital asset is not determinable, it will be necessary to record an estimated historical
cost of the asset using alternative methods. Alternative methods include standard costing and normal costing. Standard
costing estimates the historical cost of a capital asset by establishing the average cost of obtaining the same or a similar
asset at the time of acquisition.
Normal costing estimates historical cost based on the current cost to either reproduce or replace the capital asset,
indexed by a reciprocal factor from the estimated acquisition date, i.e., taking the value of acquiring the asset new today
and then discounting that amount by an appropriate inflation factor back to the date of acquisition.
17
City of Crystal, Minnesota Financial Management Plan
Capital Assets Policy (Continued)
Capital assets donated to the City shall be reported at fair value. Fair value is the amount at which an asset could be
exchanged in a current transfer at arm’s length between willing parties, other than in a forced or liquidation sale. Donations
are defined as voluntary contributions of resources to the City by a non-governmental entity. A voluntary contribution of
resources between governmental entities is not a donation.
3. Depreciation Capital Assets
Depreciation is the process of allocating the cost of a tangible asset to the periods of benefit. Capital assets shall be
depreciated over their estimated useful live with exception of the following:
A. Inexhaustible assets, i.e., land, and land improvements that do not require maintenance or replacement, e.g.,
certain works of art and historical treasures;
B. Infrastructure assets reported using the modified approach; and
C. Construction work-in-progress.
For financial purposes the City will use the straight-line method of depreciation, which allocates the cost evenly over the
life of the asset. Generally, at the end of an asset’s life, the sum of the amounts charged for depreciation in each
accounting period, or accumulated depreciation, will equal the original cost less salvage value.
A significant issue when recording capital assets is the question of when is an expenditure capitalized as an
improvement versus recorded as repairs or maintenance expense. The key consideration for determining whether to
capitalize expenditures depends on whether the cost incurred, significantly extends the asset’s useful life, increases its
capacity, or improves its efficiency. Therefore, capitalize capital asset improvement costs if:
A. The costs exceeds the capitalization thresholds; and
B. One of the following criteria is met:
o The value of the asset or estimated life is increased by 25% of the original cost or life period;
o The cost results in an increase in capacity of the asset; or
o The efficiency of the asset is increased by more than 10%;
If the above criteria is not net, then the cost should be recorded as a repair and maintenance expense within the
appropriate expense function.
18
City of Crystal, Minnesota Financial Management Plan
Capital Assets Policy (Continued)
4. Capital Asset Definitions and Categories
Land - is to be capitalized but not depreciated. It is recorded at historical cost and remains at that cost until disposal. If
there is a gain or loss on the sale of land it is reported as a special item in the statement of activities.
Land Improvements - consist of betterments, site preparation, and site improvements (other than buildings) that ready
land for its intended use. The costs associated with improvements to land are added to the cost of the land. Land
improvements can be further categorized as inexhaustible, not requiring maintenance or replacement; or exhaustible,
e.g., parking lots, landscaping and fencing.
Examples of items to be capitalized as land and land improvements include:
A. Purchase price or fair value;
B. Commissions;
C. Professional fees, includes title searches, architect, legal, engineering, appraisal, surveying, environmental
assessments;
D. Land excavation, fill, grading, and drainage;
E. Demolition of existing buildings and improvements, less salvage;
F. Removal, relocation or reconstruction of property owned by others, i.e., power, telephone and railroad lines;
G. Interest on mortgages accrued at date of purchase;
H. Accrued and unpaid taxes at date of purchase;
I. Other costs incurred in acquiring the land;
J. Water wells, including initial cost for drilling, the pump and its casing; and
K. Permanent right-of-way;
19
City of Crystal, Minnesota Financial Management Plan
Capital Assets Policy (Continued)
Other Improvements - include land improvements that are exhaustible in nature and enhance the quality or facilitate the
use of land for a specific purpose.
Examples of items to be capitalized as other improvements include:
A. Fencing and gates;
B. Landscaping;
C. Parking lots, driveways, and parking barriers;
D. Outdoor sprinkler and irrigation systems;
E. Recreation areas and athletic fields, including bleachers;
F. Paths and trails;
G. Septic systems;
H. Stadia;
I. Swimming pools, tennis courts, basketball courts, skate parks;
J. Fountains;
K. Plazas and pavilions; and
L. Retaining walls;
Buildings - refer to a structure that is permanently attached to the land, has a roof, is partially or completely enclosed by
walls, and is not intended to be transportable or moveable. Certain buildings or structures that are an ancillary parts of
infrastructure networks, such as well houses and pumping stations will be reported as infrastructure rather than as
buildings.
Example of items to be capitalized as building:
Purchased Buildings:
A. Original purchase price;
B. Expenses for remodeling, reconditioning, or altering a purchased building to make it ready for its intended
purpose;
C. Environmental complies, i.e., asbestos abatement;
D. Professional fees, includes architect, engineer, management fees for design and supervision, legal;
E. Cancellation or buyout of existing leases; and
F. Other costs required to place or render the asset into operation;
20
City of Crystal, Minnesota Financial Management Plan
Capital Assets Policy (Continued)
Constructed Buildings:
A. Completed project costs;
B. Cost of excavation or grading or filling of land for a specific building;
C. Expenses incurred for the preparation of plans, specifications, blueprints;
D. Building permits;
E. Costs of temporary buildings used during construction;
F. Additions to buildings, i.e., expansions, extensions, or enlargements;
Building Improvements - include capitalized costs that materially extend the useful life of a building or increase the
value of a building, or both, beyond one year. Building improvements should not include maintenance and repairs done
in the normal course of business.
Examples of items to be capitalized as building improvements include:
A. Installation or upgrade of heating and cooling systems, including ceiling fans and attic fans;
B. Original installation or upgrade of wall or ceiling covering such as carpeting, tiles, paneling, or parquet;
C. Structural changes such as reinforcement of floors or walls, installation or replacement of beams, rafters, joists,
steel grids, or other interior framing;
D. Installation or upgrade of window or door-frames, upgrading windows or doors, built-in closet and cabinets;
E. Interior renovation of casings, baseboards, light fixtures, ceiling trim;
F. Installation or upgrade of plumbing and electrical wiring; and
G. Installation or upgrade of telecommunication system
Example of items considered repairs or maintenance in nature and should not be capitalized as buildings or building
improvements include:
A. Adding, removing and/or moving of walls relating to renovation projects that are not considered major
rehabilitation projects and do not increase the value of the building;
B. Improvement projects of minimal or no added life expectancy and/or value to the building;
C. Plumbing or electrical repairs;
D. Cleaning; pest extermination, or other periodic maintenance;
E. Interior decoration, i.e., draperies, blinds, curtain roads, wallpaper;
F. Exterior decoration, i.e., detachable awnings, uncovered porches, decorative fences;
G. Maintenance-type interior renovation including repainting, touch-up plastering, replacement of carpet, tile, or
pane sections,
and refinishing of sinks and fixtures;
21
City of Crystal, Minnesota Financial Management Plan
Capital Assets Policy (Continued)
H. Replacement of a part or component of a building with a new part of the same type and performance
capabilities, e.g., replacement of an old boiler with a new one of the same type and performance capabilities;
I. Any other maintenance-related expenditure, which does not increase the value of the building;
Equipment, Machinery, and Vehicles - refer to fixed or movable tangible assets used for operations, the benefits of which
extend beyond one year from date of receipt.
Examples of expenditures to be capitalized as equipment, machinery, and vehicles include:
A. Original contract or invoice price;
B. Freight charges;
C. Handling and storage charges;
D. In-transit insurance charges;
E. Sales, use and other taxes imposed on the acquisition;
F. Installation charges;
G. Charges for testing and preparation for use;
H. Cost of reconditioning used items when purchased; and
I. Parts and labor associated with the construction of equipment, machinery, or vehicle;
Note that the cost of extended warranties and/or maintenance agreements, which can be separately identified from the cost
of the equipment, machinery, or vehicle shall not be capitalized.
Infrastructure Assets - are long-lived capital assets that are linear and stationary in nature and can be preserved for a
significantly greater number of years than most capital assets.
Examples of infrastructure assets include:
A. Roads, streets, curbs, gutters, sidewalks;
B. Bridges;
C. Water and sanitary sewer systems;
D. Drainage and storm water systems;
E. Street light systems; and
F. Signage;
Infrastructure assets shall be capitalized and depreciated unless the modified approach is used. The modified approach
is an alternative to reporting depreciation for infrastructure assets that meet the following criteria:
A. The assets are managed using a qualifying asset management system; and
B. It is documented that the assets are being preserved at or above a condition level established by the City.
22
City of Crystal, Minnesota Financial Management Plan
Capital Assets Policy (Continued)
Under the modified approach the infrastructure, assets are not depreciated, and only the costs that increase the capacity
or efficiency of the asset are capitalized, while all other expenditures that preserve the useful life of the assets are
expensed. Only infrastructure assets that comprise a network or subsystem of a network can be reported using the
modified approach.
Other Capital Assets - includes computer software that is either purchased or developed for internal use, which should
be capitalized, if the cost of the software exceeds the capitalization threshold and depreciated over the software’s
estimated useful life. Capitalization of computer software includes software license fees if the total dollar amount of the
fee divided by the number of units or terminals exceeds the threshold.
Examples of expenditures to be capitalized as computer software include:
A. External direct costs of materials and services, i.e., third-party fees for services;
B. Costs to obtain software from third parties;
C. Travel costs incurred by employees in their duties directly associated with development;
D. Payroll and payroll-related costs of employees directly associated with or devoting time to encoding, installing, or
testing; and
E. Costs to develop or obtain software that allows for access or conversion of old data by new information systems;
Note that upgrades and enhancements should only be capitalized to the extent that they increase the functionality of the
product.
Leased Property - Any transaction meeting the definition of long-term leased property as defined by GASB standards,
would be recorded as a lease payable and will be measured at the present value of the payments under the provisions of
the lease. The asset would equal the lease liability plus any prepayments and certain initial direct costs. An exception is
made for a short-term lease arrangement.
In the governmental funds, which report on a modified accrual basis, capital assets and long-term liabilities are not
reported. Rather, when a lease is entered into the government reports an expenditure equal to that present value
amount and another financing source - capital lease agreement.
5. Capital Assets Estimated Useful Life
Other Improvements
Fencing and gates; 20 years
Landscaping; 10 years
Parking lots, driveways, and parking barriers; 20 years
Outdoor sprinkler and irrigation systems; 20 years
Recreation areas and athletic fields, including bleachers; 20 years
Golf courses; 40 years
Paths and trails; 20 years
Swimming pools, tennis courts, basketball courts, skate
parks;
20 years
Outdoor lighting; 20 years
23
City of Crystal, Minnesota Financial Management Plan
Capital Assets Policy (Continued)
Building and Building Improvements
Equipment, Machinery, and Vehicles
Audio visual equipment; 5 years
Business machines and office equipment; 5 years
Telecommunication equipment; 5 years
Computer equipment and software; 5 years
Fire Department equipment; 10 years
Furniture and fixtures, excluding structural
components of a building; 10 years
Grounds equipment (mowers, tractors, bobcats); 8 years
Kitchen equipment (appliances); 10 years
Lab equipment; 10 years
Law enforcement equipment; 5 years
Machinery, tools and other equipment; 5 years
Outdoor equipment (playgrounds, scoreboards); 15 years
Photocopiers; 5 years
Cars, light general purpose trucks (actual weight less
than 13,000 pounds; 10 years
Heavy general purpose truck and equipment e.g.,
front loaders, graders (actual weight greater than
13, 000 pounds);
15 years
Firefighter trucks; 15 years
Infrastructure
Roads, streets, curb and gutter; 20 years
Parking lots; 20 years
Sidewalks; 20 years
Water, sanitary sewer, storm sewer systems; 50 years
1 Estimated useful life values derived from the Internal Revenue Service Alternative Depreciation System (ADS) but
adjusted by staff for the needs of the City of Crystal.
-
Buildings; 40 years
Roof; 20 years
HVAC (heating, ventilation, air conditioning); 20 years
Electrical; 30 years
Plumbing; 30 years
Sprinkler system; 20 years
Security and fire alarm system; 10 years
Cabling; 10 years
Floor covering other than carpet; 15 years
Carpeting; 10 years
Interior construction; 15 years
Interior renovation; 10 years
Elevators; 20 years
24
Capital Improvement Program
25
City of Crystal, Minnesota Financial Management Plan
Capital Improvement Program Policy
Adopted by the City Council on:
The City will develop a multi-year plan for capital improvements and capital equipment replacement and update it annually.
Capital improvements and equipment replacement for the upcoming year will be incorporated into the operating budget.
The City will identify the estimated cost and potential funding sources for each capital project or equipment purchase
before the proposal is submitted to the Council for approval and in that process will determine the most effective
financing method for the proposed project or equipment purchase.
The City will make all capital improvements or equipment purchases in accordance with the adopted capital improvement
program, or as it is amended by the Council. Capital purchases, not otherwise funded through an approved budget, shall
require City Council approval.
The City will enact each five-year capital improvement program based on a rolling multi-year capital improvement plan
update.
The City will coordinate development of the capital improvement and equipment replacement budget with the
development of the operating budget. Future operating costs associated with new capital improvements or capital
equipment will be projected and included in operating budget forecasts.
The City will use inter-governmental assistance to finance only those capital improvements or equipment purchases that
are consistent with the capital improvement plan and City priorities, and whose operating and maintenance costs have been
included in operating budget forecasts.
The City will maintain all its assets at a level adequate to protect the City’s and its citizens’ capital investment and to
minimize future maintenance and replacement costs.
26
Conduit Debt
27
City of Crystal, Minnesota Financial Management Plan
Conduit Debt Policy
Adopted by City Council on:
General
Under the Minnesota Municipal Industrial development Act, Minnesota Statutes, Sections 469.152 to 469.1655 (the
“Industrial Development Act”), the City of Crystal , Minnesota has authority to issue revenue bonds or notes to attract or
promote economically sound industry and commerce to the City, including the development of facilities by qualified
501(c)(3) organizations.
Under Minnesota Statutes, Chapter 462C (the “Housing Act”) the City is authorized to issue housing revenue bonds to
finance multi- family residential housing projects for low and moderate income persons and elderly persons.
The City Council is aware that such financing for certain private activities may be of benefit to the City and will consider
requests for tax exempt financing subject to these Guidelines. The City Council considers tax exempt financing to be a
privilege, not a right.
It is the judgment of the City Council that tax exempt financing is to be used on a selective basis to encourage certain
development that offers a benefit to the City as a whole, including employment and housing opportunities. It is the
applicant’s responsibility to demonstrate the benefit to the City. The applicant should understand that although approval
may have been granted by the City for the issuance of financing for a similar project or a similar debt structure that is not a
basis upon which approval will be granted. Each application will be judged on the merits of the project as it relates to the
public purposes of the Housing Act or the Industrial Development Act and the benefit to the City at the time the request for
financing is being considered.
Policy
1. The City Council will consider tax exempt financing for manufacturing and health care facilities, and other facilities
operated by qualified 501(c)(3) organizations, under the Industrial Development Act; and housing projects under the
Housing Act. An applicant for tax-exempt financing pursuant to the Industrial Development Act must submit to the
City the application on the form prescribed by the City Clerk.
2. The project must be a positive benefit to the City. The project must be of a nature that the City wishes to attract, or an
existing business which the City wishes to retain or expand within the City, considering employment opportunities,
incentive for further development, impact on City services, and support for the industrial, commercial or health care
operations currently located in the City. A housing project must provide significant housing opportunities for low and
moderate income persons or the elderly.
3. City staff, upon request, may grant an applicant a pre-application review. The purpose of the pre-application review
is to inform applicants of the possibility of rejection or the possible basis for such a rejection. The fact that the project is
not rejected at the pre-application stage is not to be construed as approval of the project or as an indication that the
project will be approved upon formal request to the Council. Requests for tax-exempt financing may be rejected by
the City whether or not the project was submitted to a pre-application review and regardless of the outcome or
recommendation of that pre-application review.
A request for pre-application review must be in writing, addressed to the City Manager, and set forth the name of the
project, the type of project intended and the name, address and telephone number of the person who will be
representing the applicant at the pre-application review, together with such additional information as the applicant
desires to submit.
The City will appoint bond counsel for the bond issue, which will normally be the City’s regularly retained bond
counsel.
4. Pursuant to the Industrial Development Act and the Housing Act, consideration of an application for tax exempt
financing must be done at a public hearing held by the Council.
28
City of Crystal, Minnesota Financial Management Plan
Conduit Debt Policy (Continued)
5. The City is to be reimbursed and held harmless for and from any out-of-pocket expenses related to the tax-exempt
financing including, but not limited to, legal fees, financial advisor fees, and bond counsel fees, the City’s expenses
in connection with the application, and any deposits or application fees required under state law in order to secure
allocation of bonding authority.
6. A non-refundable application fee in the amount of $1,000 must be included with the submission of the application, and
a $7,500 refundable fee to be applied to the expenses of the City, any additional costs incurred by the City will be
paid by the applicant.
Projects within City limits - .6% of bond issue amount
Prior to closing and delivery of the bonds for the project, the applicant must pay to the City, or commit to pay, as
the case may be, a one-time administrative fee equal to .6% of principal of the bonds issue amount for any project
commencing within City limits.
Projects outside of City limits - 1% of bond issue amount
Revenue bonds issued for projects outside of the City limits shall be charged a one-time administrative fee equal
to 1.0% of the bond issue amount. Notwithstanding anything to the contrary herein, the administrative fees
required by this paragraph will be reduced to the extent needed to ensure that the fee does not affect the tax-
exempt status of the bonds under Internal Revenue Code of 1986, amended and related regulations.
7. Should the tax exempt financing request cause the City’s total bonding for the year to exceed $10,000,000 in a year
the City would otherwise be eligible to issue bank qualified bonds, (bonds with tax incentives to banks), any
interest rate differential between bank qualified and non-bank qualified bonds shall be estimated and the difference
paid by the borrower. If the City would have exceeded this amount without the tax-exempt issue, no differential
would be calculated or paid by the borrower.
8. Applications for financing must be made on the forms attached to these Guidelines. In addition, the applicant must
furnish a description of the project, together with a brief description of applicant and the proposed financing in such
form as required at the time of application. The City will not review financial statements, nor form any opinions as to
the financial success of the proposed business plan.
9. The City may, in its sole discretion, withdraw its preliminary approval of a project any time if in its judgment the
purposes of the Act will not be served by going forward with the project and its financing.
Miscellaneous
1. Ratings. The City will give its most favorable consideration to proposed tax-exempt bond issues that have the rating
of “A” or better by Moody’s Investment Service, Standard & Poor’s Corporation, Fitch Ratings or Kroll Ratings.
Issues carrying lower ratings or non-rated issues may be sold only to institutional or other investors on a private
placement basis and must be in denominations of at least $100,000. A lower denomination, but not less than
$25,000, may be allowed if specifically authorized by the City Council in cases where the bonds are rated above
investment grade and the bonds are sold only to institutional or accredited investors as defined under the Securities
Act of 1933. The City Council may depart from this guideline when, in its judgment, the project is of a level of merit
and public purpose to justify the departure; and in the case of such a departure, the City Council must state its
reasons therefore in the resolution awarding the sale of bonds.
2. Refundings. The City Council will normally approve the refunding of a tax-exempt issue but only upon a showing by
the applicant of (i) substantial debt service savings, (ii) the removal of bond covenants significantly impairing the
financial feasibility of the project, or (iii) both (i) and (ii). In the case of refunding of bonds a one-time administrative
fee of .025% of the bond issue amount and the non-refundable administrative application fee of $2,500 must be paid
together with reimbursing the City all out of pocket costs. If the original financing was not completed with the City of
Crystal, a fee of 0.50% of the bond issue amount shall be charged for the refunding. Such fees must be paid in full
prior to closing the refunding bonds.
29
City of Crystal, Minnesota Financial Management Plan
Conduit Debt Policy (Continued)
3. Subsequent Proceedings. Where changes to the underlying documents or credit facilities of outstanding bond issues
are to be made and require Council action (including changes that are a “deemed reissuance” under Internal
Revenue Service regulation), no administrative fee is charged but a non-refundable fee of $2,000 must be deposited
with the City to cover administrative costs. Additional costs incurred by the City will be paid by the applicant. No
formal application form is required.
4. Issue by Another Political Subdivision. The City may consider requests for tax-exempt financing of projects in the
City by other political subdivisions in cases where the project is done in conjunction with other communities, the
financing needed for the Crystal portion is small as compared to the total multi-jurisdictional project and the
financed portion located within the City of Crystal is not more than $5,000,000 or where the development provides
community services to the vicinity including Crystal. In these cases the non-refundable application fee of $2,000
must be paid and all procedures through the approval of the preliminary resolution followed.
5. City Contact. Initial contacts about tax exempt financing are made by contacting:
City of Crystal
City Manager
4141 Douglas Drive N
Crystal, MN 55442
(763) 531-1000
6. Deadlines. The City Council conducts all tax-exempt financing matters at regularly scheduled City Council meetings.
Documents for City Council consideration must be at the City office no later than 10 calendar days prior to the next
City Council meeting at which the matter is to be considered. In the case of a publicly offered bond issue, the
documents, when submitted, may specify a maximum price and maximum effective interest rate if prices and rates
have not yet been established.
30
Contracts
31
City of Crystal, Minnesota Financial Management Plan
Contract Policy & Procedure
Adopted by City Council on:
1. Policy
The budget allocates funds for the purchase of personnel, supplies, other services and capital. Requests cannot be made
for items outside the budget except under special circumstances. These special circumstances will have to be approved
by the City Manager. The Purchasing Agent is the City Manager. Purchases less than $500 may be purchased by
authorized staff members; $2,500 may be purchased by Supervisors; $15,000 may be purchased by Department
Directors; purchases up to $25,000 may be approved by the City Manager (without Council approval); and purchases
exceeding $25,000 must be approved by the City Council with the following exceptions;
Professional services - the City is not required to use the competitive bidding process when contracting for professional
services, such as those of engineers, lawyers, architects, and accountants as well as other services requiring technical or
professional training like refuse hauling and janitorial services.
Insurance contracts - the City is not required to use the competitive bidding process for insurance contracts however; the
City must seek requests for proposals for group insurance.
2. Organizations affected: All departments.
32
City of Crystal, Minnesota Financial Management Plan
Contract Policy & Procedure (Continued)
3. Procedure:
A. Purchase & Bidding Requirements:
Amount of
Purchase:
Type of quote
required:
Approval
required
by:
Written bid
specifications:
Sealed
bids
required:
Contract
required:
Purchase order
required:
Purchases under
$500
None None not required no no no
Purchases under
$2,500
two telephone
quotes are
preferred
Supervisor not required no no no
Purchases
between $2,500-
$15,000
two written
quotes required
unless special
circumstances
are noted
Dept.
Director
as required
based on type
of purchase
no no no
Purchases over
$15,000 up to
$25,000
three written
quotes required
unless special
circumstances
are noted
City
Manager
as required
based on type
of purchase
no no no
Purchases over
$25,000 up to
$175,000
three written
quotes required
unless special
circumstances
are noted; consult
cooperative
purchasing
programs
City
Council
as required
based on type
of purchase
no construction
projects yes;
commodities
at discretion
of City
Manager
no
Purchases
greater than
$175,000
City Clerk must
advertise in City’s
legal newspaper
City
Council
required yes yes no
Capital Improvement Program (CIP) Purchases – see Section E.
B. Guaranteed Energy Savings Agreements:
o State Statues authorize the City to enter into a guaranteed energy savings agreement with a qualified
provider for the purpose of implementing comprehensive utility cost-saving measures to improve the energy
efficiency of various municipal facilities within the City so long as the implementation costs will not exceed the
amount to be saved in utility and maintenance costs over a twenty year period with said utility and
maintenance cost savings guaranteed in writing by the qualified provider. The City shall follow all
requirements as prescribed in Statute related to this authority to enter into Guaranteed Energy Savings
Agreements.
33
City of Crystal, Minnesota Financial Management Plan
Contract Policy & Procedure (Continued)
C. Responsible Contractor Compliance:
o A contractor responding to a solicitation document of a contracting authority shall submit to the
contracting authority a signed statement under oath by an owner or officer verifying compliance with each
of the minimum criteria in subdivision 3 of Minnesota Statute 16C.285, with the exception of clause (7), at
the time that it responds to the solicitation document. A contracting authority may accept a signed
statement under oath as sufficient to demonstrate that a contractor is a responsible contractor and shall
not be held liable for awarding a contract in reasonable reliance on that statement. A prime contractor,
subcontractor, or motor carrier that fails to verify compliance with any one of the required minimum criteria
or makes a false statement under oath in a verification of compliance shall be ineligible to be awarded a
construction contract on the project for which the verification was submitted. A false statement under oath
verifying compliance with any of the minimum criteria may result in termination of a construction contract
that has already been awarded to a prime contractor or subcontractor or motor carrier that submits a false
statement. A contracting authority shall not be liable for declining to award a contract or terminating a
contract based on a reasonable determination that contractor failed to verify compliance with the
minimum criteria or falsely stated that it meets the minimum criteria. A verification of compliance need not
be notarized. An electronic verification of compliance made and submitted as part of an electronic bid
shall be an acceptable verification of compliance under this section, provided that it contains an electronic
signature as defined in section 325L.02, paragraph (h) of Minnesota Statues 16C.285.
D. Cooperative Purchasing Contracts:
o For contracts estimated to exceed $25,000, a city must consider the availability, price, and quality of
supplies, materials, or equipment available through the state cooperative purchasing venture before
buying through another source.
o If the City is not utilizing the state's cooperative purchasing venture, the City may consider another
national municipal association's purchasing alliance or cooperative created by a joint powers agreement
that purchases items from more than one source on the basis of competitive bids or competitive
quotations
E. Bidding Requirements:
o When supplies or equipment are competitive in nature, specifications cannot exclude all but one type of
equipment or supplies. Proposals and specifications must allow free and full competition. Bidding
requirements cannot be avoided by splitting a contract into several contracts, each of which is below the
minimum amount requiring sealed bids. For example, the City cannot purchase $200,000 of lumber in
several transactions, each involving an expenditure of less than $100,000. However, if materials or work
logically fall into two separate contracts because they involve separate transactions, as for the service of
contractors specializing in different kinds of work, there is no reason why the City cannot negotiate the
contracts individually without sealed bids if the bids do not exceed the $175,000 minimum.
o Capital Improvement Program (CIP) purchases – the CIP is not an adopted budget document, therefore,
the expenditure has not been formally authorized. A resolution should be adopted listing the funding
source to give the formal authorization to expend the funds for the equipment purchase.
o Sales tax – Beginning January 1, 2015 purchases made by the City of Crystal are generally exempt. The
general exemption for cities, however, does not apply to purchases made by the City to provide the
following goods and services: golf courses, solid waste, and cafes. Certain other exclusions are listed in
Statute and should be reviewed on a regular basis. Bidders should specify whether their bid includes
sales tax or not. After the work is completed and a purchase order is processed, if the invoice does not
itemize sales tax you must obtain a corrected invoice from the vendor if sales tax is applicable on the item
purchased. The City is not subject to the Hennepin County Sales and Use Tax of 0.15% that went into
effect January 1, 2007.
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City of Crystal, Minnesota Financial Management Plan
Contract Policy & Procedure (Continued)
o Consultant services - state law does not require cities to competitively bid contracts for professional
services (i.e. attorney, architect, engineer, accountant, cleaning company, or other person with technical,
scientific, or professional training such as refuse hauling).
o Sealed bids are required for purchases exceeding $175,000, and bids must be advertised by the City
Clerk in the City's legal newspaper (Notice to Bidders) and publicly opened and approved by Council
resolution. In addition to the legal notice, the City must prepare instructions to bidders and general
specifications for sealed bids. Attaching a copy of the proposed contract to the instructions to bidders is
required. Sealed bids, including the number of bids received prior to bid opening, are nonpublic. Once
opened, the name of the bidder and the dollar amount of the bid are public (all other data is private until
completion of the selection process).
o Bids vs. Quotes terminology – always use term quotation unless referring to a sealed bid.
o Bid security (for sealed bids for purchases over $175,000) in the amount of five percent (5%) of the bid
shall be submitted to the City Clerk. The bid security guarantees that in the event the bidder’s offer is
accepted, the bidder will enter into a contract in accordance with the proposal. Bid security of the
successful bidder will be returned upon execution of the contract documents. Bid securities of
unsuccessful bidders will be returned within a reasonable time period (Minnesota Statute §574.27).
Failure of the successful bidder to execute the Contract and furnish applicable bonds within ten (10) days
after receiving written notice of the award shall cause the bid security to be forfeited as liquidated
damages to the City. The City Council at this time may award the contract to the next lower competent
bidder unless the Council determines that public interest will be better served by accepting a higher bid,
or the contract may be re-advertised.
o As a statutory City, contracts and bids must be awarded to the lowest responsible bidder. It should be
noted that the bidder who submits the lowest bid in dollars is not necessarily the "lowest responsible
bidder" and the quoted phrase gives the Council reasonable discretion in choosing among bidders.
Responsibility, in bid statutes, means not only financial responsibility but also integrity, skill, and the
likelihood that the bidder will perform faithful and satisfactory work.
o Rejecting Bids (and related Data Practices laws) - the City has the right to reject any and all bids
(requests for proposals, requests for bids, sealed bids). All data submitted in response to bid requests are
private until bids are opened. If bids are rejected prior to the completion of the evaluation or selection
process, all data, other than that made public at the bid opening, remain private until a re-solicitation of
bids results in completion of the selection process. If the rejection occurs after the completion of the
selection process, the data remain public. If a re-solicitation of bids does not occur within one year of the
bid opening date, the remaining data become public
F. Use of Requisition/Purchase Order Form:
o A purchase order shall not be required by the City. If the vendor requires a purchase order, City staff may
request a purchase order from Finance to provide to the vendor. No additional tracking of the purchase
order throughout the accounts payable transaction cycle is required
G. Amendments
The contract cost, once established by the Council, shall represent the maximum obligation to the City. Any change
orders which affect the cost of the contract shall be reviewed by the City Manager and City Representative
managing the contract, who then will forward the justification for the change order to the City Council for approval. In
no event will payment in excess of the contract cost be made until such approval has been obtained.
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City of Crystal, Minnesota Financial Management Plan
Contract Policy & Procedure (Continued)
H. Bond Requirements
The vendor must execute to the City a performance bond and a payment bond for public work over $100,000 to
protect the City and all people furnishing work, equipment, materials, or supplies. An irrevocable letter of credit
may be accepted in lieu of a performance bond.
No City contract is valid, nor may work commence, until the contractor provides a Performance Bond and a Labor
and Materials Bond to the City in accordance with state statute.
I. Certificate of Insurance
Before beginning work on a Contract, the Contractor must submit to the City, and obtain City’s approval, on a
certificate of insurance. This certificate shall be composed of a Standard Form C.I.C.C.-701 or an ACORD 25
form. The certificate of insurance shall list the City as the policies additional insured, and shall be maintained at
all time throughout the life of the contract, and provide for the following minimum coverage
o Comprehensive General Liability: $1,000,000.00 per occurrence;
$2,000,000 aggregate
o Automobile Liability for All Automobiles: $1,000,000.00 combined single limit
o Workman’s Compensation: Statutory Amounts
The Insurance cancellation language should state that the company will provide the City 30 days' written notice
of cancellation (include this requirement in bid specifications if applicable).
4. Exceptions:
Any deviation from this policy must be approved by the City Manager.
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Debt Management
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City of Crystal, Minnesota Financial Management Plan
Debt Management Policy
Adopted by City Council on:
1. Purpose
A. To define the role of debt in the City's total financial strategy so as to avoid using debt in a manner that
weakens the City’s overall financial condition.
B. To establish limits on the amount of City debt which will allow for manageable debt service costs.
C. To maintain the best possible credit rating.
2. Policy
A. The City will confine long-term borrowing to capital improvements, equipment or projects that have a life of more
than 5 years and cannot be financed from current revenues.
B. The City will strive to keep the total maturity length of general obligation bonds below 15 years with at least
50% of the principal being retired within 10 years. In all cases, the maturity shall be shorter than the life of
the related assets.
C. The City will strive to keep the direct debt per capita and direct debt as a percent of estimated market value
at or below the median set out by the credit rating agencies.
D. Total general obligation debt will not exceed the statutory limit of three percent of the estimated Full Market Value of
taxable property in the City as required by Minnesota State Statute.
E. The City will not use long-term debt for current operations.
F. The City will maintain frequent and regular communications with bond rating agencies about its financial
condition and will follow a policy of full disclosure in every financial report and bond prospectus. The City will
comply with Securities Exchange Commission (SEC) reporting requirements.
G. Refinancing or bond refunding will only be undertaken when there is significant economic advantage to the City,
and when it does not conflict with other fiscal or credit policies.
H. Interfund borrowing shall have a reasonable repayment schedule and be approved by Council resolution. Refer
to the policies set for in the Interfund Loan Policy.
I. The maintenance of the best possible credit rating shall be a major factor in all financial decisions. For the
purposes of issuing debt, bond rating categories shall be used as a means of assessing the City’s financial
condition.
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Fund Balance
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City of Crystal, Minnesota Financial Management Plan
Fund Balance Policy
Adopted by City Council on:
1. Purpose
The purpose of this policy is to establish specific guidelines the City of Crystal (the City) will use to maintain an
adequate level of fund balance to provide for cash flow requirements and contingency needs because major revenues,
including property taxes and other government aids are received in the second half of the City’s fiscal year. This policy
also establishes specific guidelines the City will use to classify fund balances into categories based primarily on the
extent to which the City is bound to honor constraints on the specific purposes for which amounts in these funds can be
spent. The elements of the policy are created by the City for its own purposes and may, therefore, be revised by the City
as needed in the future.
2. Classification of Fund Balance/Procedures
A. Nonspendable
This category includes fund balance that cannot be spent because it is either (i) not in spendable form or (ii)
is legally or contractually required to be maintained intact. Examples include inventories and prepaid
amounts.
B. Restricted
Fund balance should be reported as restricted when constraints placed on those resources are either (i)
externally imposed by creditors, grantors, contributors, or laws or regulations of other governments or (ii)
imposed by law through constitutional provisions or enabling legislation.
C. Committed
o Fund balance that can only be used for specific purposes pursuant to constraints imposed by formal action
of the City’s highest level of decision-making authority. The committed amounts cannot be used for any
other purpose unless the City removes or changes the specified use by taking the same type of action it
employed to commit those amounts.
o The City Council will as deemed necessary commit specific revenue sources for specified purposes by
resolution. This formal action must occur prior to the end of the reporting period, however, the amount to
be subject to the constraint, may be determined in the subsequent period.
o To remove the constraint on specified use of committed resources the City Council shall pass a resolution
D. Assigned
o Amounts that are constrained by the City’s intent to use for specified purposes, but are neither restricted
nor committed. Assigned fund balance in the General fund includes amounts that are intended to be used
for specific purposes.
o The City Council has delegated the authority to assign and remove assignments of fund balance
amounts for specified purposes to the Finance Director.
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City of Crystal, Minnesota Financial Management Plan
Fund Balance Policy (Continued)
E. Unassigned
o Unassigned fund balance represents the residual classification for the General fund. This includes amounts
that have not been assigned to other funds and that have not been restricted, committed, or assigned to
specific purposes within the General fund. The General fund should be the only fund that reports a positive
unassigned fund balance amount.
o The City will maintain an unassigned fund balance in the General fund of an amount not less than 45% of
the next year’s budgeted expenditures of the General fund. This will assist in maintaining an adequate level
of fund balance to provide for cash flow requirements and contingency needs because major revenues,
including property taxes and other government aids are received in the second half of the City’s fiscal year.
3. Monitoring and Reporting
A. The Finance Director shall monitor the status of fund balances in relation to this policy and present to the City
Council. When both restricted and unrestricted resources are available for use, it is the City’s policy to first use
restricted resources, and then use unrestricted resources as they are needed.
B. When committed, assigned or unassigned resources are available for use, it is the City’s policy to use
resources in the following order; 1) committed 2) assigned and 3) unassigned.
C. A negative residual amount may not be reported for restricted, committed, or assigned fund balances in the
General fund.
4. General Fund Unassigned Fund Balance
Each year a calculation of the General Fund Unassigned Fund Balance will be prepared to determine if there are
adequate funds to transfer out of the General Fund for capital needs. The City Manager will review this calculation and
make a recommendation to the City Council regarding opportunities to transfer fund to assist with capital needs.
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Interfund Loan
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City of Crystal, Minnesota Financial Management Plan
Interfund Loan Policy
Adopted by City Council on:
Purpose
The interfund loan policy provides the parameters by which the City may alleviate cash flow shortages in the various City
funds with temporary loans from other funds. Interfund loans are intended to be a temporary internal financing mechanism
which may be used to alleviate the need for debt issuance on a project that requires only short-term financing and/or to
provide temporary internal financing on a project for which permanent financing will take place at a later date.
Policy
It is the policy of the City Council that interfund loans between the General Fund, Special Revenue Funds, Debt Service
Funds, Capital Projects Funds or the Enterprise Funds may be used to alleviate a temporary cash deficiency. The loan shall
be accounted for as a temporary borrowing between funds or accounts and shall not be available for appropriation or be
considered revenue to the borrowing fund or account. Amounts transferred shall be repaid within 180 calendar days or as
approved by Council resolution. Borrowing shall occur only when the fund or account receiving the money will earn sufficient
revenue during the current fiscal year, to repay the amount transferred. No more than 75 percent of the maximum of moneys
held in any fund or account during a current fiscal year may be loaned or transferred.
Such loans shall not be used to balance the budget of the borrowing fund, nor shall they deter any function or project for
which the loaning fund was established.
The City Council must adopt a resolution before any interfund loan transaction takes place. The resolution shall contain the
exact amount of the loan, the funds involved, the purpose of the loan, the specific source of funds for repayment, the
schedule for repayment and any interest rate involved.
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Investment
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City of Crystal, Minnesota Financial Management Plan
Investment Policy
Adopted by City Council on:
1. Investment Policy Statement of Purpose
This policy has been developed to serve as a reference point for the management of City assets. It is the policy of the City
to invest public funds in a prudent manner which provides for the following in order of importance: Safety; Liquidity; and
Yield (return on investment) that conforms to all federal, state and local regulations governing the investment of public
funds. All investments purchased by the City are expected to be held until maturity. The City will invest in securities that
match the City’s operational, short-term and longer term core reserve needs.
2. Scope
This Investment Policy applies to all financial assets of the City. All cash and investments are pooled together to achieve
economies of scale for each entity. These funds are accounted for in the Comprehensive Annual Financial Report and
include all City and Economic Development Authority funds:
A. General Fund
B. Special Revenue Funds
C. Capital Project Funds
D. Debt Service Funds
E. Enterprise Funds
F. Internal Service Funds
G. Trust and Agency Funds
3. Prudence
Investments shall be made with judgment and care under circumstances existing at the time the investment is made. The
standard of prudence to be used by investment officials shall be the “prudent person” standard and shall be applied in the
context of managing an overall portfolio. The prudent person standard requires that a fiduciary exercise discretion and
average intelligence in making investments that would be generally acceptable as sound. Investment officers acting in
accordance with written procedures and the investment policy and exercising due diligence shall be relieved of personal
liability for an individual security’s credit risk or market price changes, provided deviations from expectations are reported in
a timely fashion and appropriate action is taken to control adverse situations. Investment procedures developed for the
Finance Department must be complied with by those with access to and management responsibilities for City investments.
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City of Crystal, Minnesota Financial Management Plan
Investment Policy (Continued)
4. Objective
The primary objective of the City of Crystal ’s investment activities shall be:
A. Safety - Safety of principal is of critical importance to the investment program. Investments of the City shall be
undertaken in a manner that seeks to ensure the preservation of principal in the overall portfolio. The objective will
be to mitigate credit risk and interest rate risk.
o Credit Risk - the risk of loss due to failure of the security issuer or backer will be minimized by:
• Limiting investments to the types of securities listed in Section 8 of this investment policy.
• Pre-qualifying the financial institutions, broker/dealers, intermediaries, and advisors with which the
City will do business in accordance with Section 7.
• Diversifying the investment portfolio so that the impact of potential losses from any one type of
security or from any one individual issuer will be minimized. Insurance or collateral may be required
to ensure return of principal.
o Interest Rate Risk – the risk that the market value of securities in the portfolio will fall due to changes in
market interest rates will be minimized to:
• Provide for liquidity by reviewing cash flow requirements and make investments to meet the shorter cash
flow needs, thereby avoiding the need to sell securities in the open market prior to maturity.
• Manage the average maturity of the overall portfolio to be consistent with the risk profile of the City
not to exceed 3.5 years.
B. Liquidity - The City’s investment portfolio will remain sufficiently liquid to enable the City to meet all operating
requirements as reasonably anticipated. The portfolio will be structured so that the liquid component, a minimum
of five percent of total investments, of the portfolio will be invested only in short-term securities maturing in less
than thirty days. Additionally, since all possible cash demands cannot be anticipated, the portfolio should consist
largely of securities with active secondary or resale markets (dynamic liquidity). Furthermore, a portion of the
portfolio may be placed in money market mutual funds or local government investment pools which offer same
day liquidity for short- term funds.
C. Yield/Return on Investment - The City’s investment portfolio shall be designed with the objective of attaining
a market rate of return. The core of investments is limited to low-risk securities in anticipation of earning a fair
return relative to the risk being assumed. Securities shall generally be held until maturity with the following
exceptions:
o A security with declining credit may be sold early to minimize loss of principal.
o A security swap would improve the quality, yield, or target duration in the portfolio.
o Liquidity needs of the portfolio require that the security be sold.
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City of Crystal, Minnesota Financial Management Plan
Investment Policy (Continued)
5. Delegation of Authority
The investment program shall be operated in conformance with federal, state, and other legal requirements.
Authority to manage the City’s investment program is derived from the following:
A. Minnesota Statutes 118A, Municipal Funds
Management responsibility for the investment program is hereby delegated to the City Manager, who shall establish
procedures for the operations of the Investment Program consistent with this Investment Policy. The Finance Director, with
assistance from finance department staff, shall:
A. Monitor performance of the investment portfolio;
B. Ensure funds are invested in accordance with the policy;
C. Analyze, recommend and implement policy and operational procedures that will enhance the City's
investment program;
D. Ensure that proper internal controls are developed to safeguard investment assets.
Procedures should include reference to: safekeeping, delivery versus payment (DVP), and investment accounting. Such
procedures shall include explicit delegation of authority to persons responsible for investment transactions. No person
may engage in an investment transaction except as provided under the terms of this Policy and the procedures
established by the Finance Director. The Finance Director shall be responsible for all investment transactions and shall
establish a system of controls to regulate the activities of subordinates. The City Manager is responsible for oversight and
authorization of investment transactions.
6. Ethics and Conflicts of Interest
The City Manager, Finance Director and Finance staff involved in the investment process shall refrain from conducting
personal business activity that could conflict with proper execution of the investment program, or which could impair
their ability to make impartial investment decisions. Investment staff shall annually disclose to the City Clerk any
material financial interests as required by state statute on an annual Statement of Economic Interest form. Investment
staff shall subordinate their personal investment transactions to those of the City, particularly with regard to the time of
purchases and sales, and shall refrain from undertaking personal investment transactions with the same individual with
whom business is conducted on behalf of the City.
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City of Crystal, Minnesota Financial Management Plan
Investment Policy (Continued)
7. Financial Service Providers:
The Contracted Finance Director or Finance Director will maintain a list of financial institutions authorized to provide
investment services. Public deposit shall be made in a qualified public depository as established by state laws. The
purchase of all investments must be from qualified financial service providers via established bid procedures.
Financial service providers who desire to become qualified bidders for investment transactions must supply the City
Council with the following upon request:
A. Audited Financial Statements
B. Completed Broker/Dealer Certificate
C. Certification of Having Read City’s Investment Policy
D. Depository Contracts
E. Credit Report
F. Proof of FINRA (Financial Industry Regulatory Authority) membership
G. Proof of State Registration
H. Evidence of Adequate Insurance Coverage
I. Compliance with Municipal Securities Regulations Board (MSRB) if investing bond proceeds.
8. Authorized and Suitable Investments
Based on the investment objectives as defined in section 4 of this policy, the City will limit its investments to the
following types of securities:
A. Money Market Funds may be held with next day withdrawal capacity to provide for daily liquidity requirements.
These money markets must be AA. They may only invest in securities with a final maturity no longer than 13
months and for which the City has obtained and reviewed the fund prospectus.
B. Savings/demand deposits. A financial institution that is qualified as a “depository” of public funds of
government entities. The City may hold balances in qualified bank deposits. Funds may be held in savings
accounts at approved depository banks. If balances are greater than the FDIC limit, collateral of 110 percent
will be held for the excess balances. Non-interesting bearing deposits will be held at a minimum. However, the
interest bearing demand deposit programs that banks provide for next day access to funds will be utilized.
C. Bankers acceptances purchased on the secondary market rated with the highest short-term credit rating of
any two Nationally Recognized Statistical Rating Organizations (NRSROs), at the time of purchase. Maximum
maturity will be 270 days. If the banker’s acceptance is rated by more than two NRSROs, it must have the
highest rating from all the organizations.
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City of Crystal, Minnesota Financial Management Plan
Investment Policy (Continued)
D. Commercial paper. Short term unsecured debt which has been issued by a United States corporation or
their Canadian subsidiaries and is not a limited liability corporation (LLC) to fund their day to day operational
needs. Maturities typically range from one day to 270 days. The City may only buy paper that meets the
Minnesota Statute 118A with the exception that no Asset Backed or Structured Investment Vehicle (SIV)
Commercial Paper are allowed. Only commercial paper with two of the three highest quality ratings of A1, P1,
F1 and the underlying issuer of the commercial paper must have a long-term debt rating of AA to be utilized.
E. U.S. Treasury obligations including bonds, notes, Treasury bills, or other securities which are direct
obligations of the United States. Instruments sold and issued by the U.S. Government carry the full faith
guarantee of the U.S. Government. These instruments provide the highest quality available to purchase
and are highly liquid.
F. U.S. Agency securities GSE’s (Government Sponsored Enterprises) are instrumentalities, or
organizations created by an act of Congress. Government Sponsored Enterprise securities have the
implied guarantee of the United States Government and are privileged to certain access to capital and
support of government programs. The issuers are generally considered to have the second highest credit
quality in the fixed income markets and provide higher yields than U. S. treasury obligations. The ratings
on all the agencies that the City can invest are the highest available and include the following specific
issuers:
o FHLB: The Federal Home Loan Bank System (FHLB) was created by Congress in 1932 and acts as a
source of funds for its nearly 8,000 member banks. FHLB does not purchase home mortgages to the same
extent as Freddie Mac and Fannie Mae, but primarily lends money to homeowners through its member
financial institutions. FHLB System members include commercial banks, thrifts, credit unions and insurance
companies. Each member is a shareholder in one of the 12 regional Federal Home Loan Banks; each
regional bank is an individual corporate entity, which must meet strict management and capitalization criteria
befitting its GSE status. The FHLB System is regulated by the Federal Housing Finance Board (FHFB) and
the Office of Finance (OF).
o FHLMC: The Federal Home Loan Mortgage Corporation encompasses Freddie Mac; it is a housing GSE
created by Congress in 1970 to provide liquidity and stability in the home mortgage market, thereby
increasing the flow of funds available to mortgage borrowers. In order to accomplish this goal, Freddie Mac
does not make individual mortgage loans to consumers. Rather, Freddie Mac purchases mortgages from
lenders, thereby allowing them to lend the proceeds to more homebuyers. Freddie Mac is regulated by the
Secretary of Housing and Urban Development (HUD) and by the Office of Federal Housing Enterprise
Oversight (OFHEO).
o FFCB: The Federal Farm Credit Bureau is an agency of the Federal government set up to supply
credit to various classes of institutions and individuals such as farmers and farm cooperatives.
o FNMA: Federal National Mortgage Association chartered under the Federal National Mortgage Association
Act in 1938. FNMA is a federal corporation working under the auspices of the Department of Housing and
Urban Development (HUD). It is the largest single provider of residential mortgage funds in the United
States. Fannie Mae, as the corporation is called, is a private stockholder-owned corporation. The
corporation’s purchases include a variety of adjustable mortgages and second loans, in addition to fixed-
rate mortgages. FNMA’s securities are also highly liquid and are widely accepted. FNMA assumes and
guarantees that all security holders will receive timely payment of principal.
o Other issuers: There are other GSE issuers, however, they issue fewer securities and are less active
in the marketplace. Therefore, yields typically are slightly higher but they provide less liquidity. The
City may purchase other GSE names but will limit the amount held in the portfolio.
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City of Crystal, Minnesota Financial Management Plan
Investment Policy (Continued)
G. Municipal Securities are registered securities of state/county/local and other governmental agencies. Bonds
of the state/county/local and other governmental agencies which have at the time of investment one of the
three highest credit ratings of nationally recognized rating agency are allowable investments. They must have
a taxing power rating of A, AA or AAA. The City will typically buy only AA or better to provide for quality
investments in the portfolio. Any security which is a general obligation of any state or local government with
taxing powers which is rated “A” or better by a national bond rating service is allowed. Tax exempt or taxable
bonds qualify as long as they meet the rating standards.
H. Repurchase agreements consisting of collateral allowable in Minnesota Statute, section 118A, and
reverse repurchase agreements may be entered into with any of the following entities:
o A financial institution qualified as a “depository” of public funds of the government entity;
o any other financial institution which is a member of the Federal Reserve System and whose combined
capital and surplus equals or exceeds $10,000,000;
o a primary reporting dealer in United States government securities to the Federal Reserve Bank of New
York; or
o a securities broker-dealer licensed pursuant to chapter 80A, or an affiliate of it, regulated by the Securities
and Exchange Commission and maintaining a combined capital and surplus of
o $40,000,000 or more, exclusive of subordinated debt. Reverse agreements may only be entered into for a
period of 90 days or less and only to meet short-term cash flow needs. In no event may reverse
repurchase agreements be entered into for the purpose of generating cash for investments, except as
stated in Minnesota Statute, section 118A.
I. Guaranteed investment contracts. Specific project monies may be invested in agreements or contracts for
guaranteed investment contracts may be entered into if they are issued or guaranteed by United States
commercial banks, domestic branches of foreign banks, United States insurance companies, or their Canadian
subsidiaries, or the domestic affiliates of any of the foregoing. The credit quality of the issuer’s or guarantors
short and long-term unsecured debt must be rated in one of the two highest categories by a nationally
recognized rating agency. Should the issuer’s or guarantor’s credit quality be downgraded below “A”, the
government entity must have withdrawal rights.
J. Each type of security listed above in Sections E, F and G may have various structures such as non- callable,
callable and variable rate debt.
o Non Callable – A debt instrument issued for the purpose of raising capital by borrowing. They typically
pay semi-annual coupons and have a stated final maturity.
o Callable – Debt in which the issuer has the right to redeem prior to its maturity date, under certain
conditions.
o Variable – Debt in which the issuer has the right to reset the coupon rate based on specified
market conditions and terms.
9. Securities Lending Agreements
Securities lending agreements, including custody agreements, may be entered into with a financial institution meeting
the qualifications of Minnesota Statute 118A and further restricted within this investment policy. Securities lending
transactions may be entered into with entities meeting the qualifications and the collateral for such transactions shall
be restricted to the securities described in Minnesota Statute 118A. Any future security lending contract would be
subject to City Council approval.
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City of Crystal, Minnesota Financial Management Plan
Investment Policy (Continued)
10. Prohibited Investments and Transactions
Prohibited investments include inverse floaters, range notes, interest only strips derived from a pool of mortgages
(collateralized mortgage obligations), and any security that could result in zero interest accrual if held to maturity.
Specifically restricts:
A. Obligations whose coupon payments are determined largely or entirely by an embedded range accumulation
option. For example, range notes; these securities are used primarily to enhance interest rates when an investor
is confident in a forecast.
B. Obligations whose payment represents the principal stream cash flow from underlying mortgage backed
securities collateral. For example, Collateralized Mortgage Obligations (CMO).
C. Obligations that the interest rate and principal repayment adjusts opposite to the changes in the
market. For example, inverse floaters.
D. Obligations that under certain environments may pay no interest. For example, principal only securities.
E. Obligations that have a maturity that will extend longer than five years under certain rate environments. For
example, mortgage backed securities. Additionally, mortgage-backed securities that are defined as high risk or
in certificates of deposit secured by letters of credit issued by federal home loan banks are not permissible
investments.
11. Collateralizations
Collateralization will be required on the following types of investments:
A. Certificates of Deposit
B. Demand Deposits
C. Repurchase Agreements (for investments held beyond seven days)
In order to anticipate market changes and provide a level of security for all funds, the collateralization level will be 110%
of market value of principal and accrued interest. The underlying securities will be subject to periodic (monthly) market
valuations to ensure there is no market exposure.
A. Collateral is limited to the following U. S. government securities:
o Treasury Issues
o Treasury Bills
o Treasury Notes
o Treasury Bonds
o Agency Notes and Bonds
o Federal National Mortgage Association
o Federal Home Loan Bank
o Federal Farm Credit Bank
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City of Crystal, Minnesota Financial Management Plan
Investment Policy (Continued)
o Federal Home Loan Mortgage
o Corporation Mortgage Backed Securities
o No mortgage backed securities are allowed
For cash deposits on hand, clearly marked evidence of ownership (safekeeping receipt) must be supplied and
retained. Collateralization shall be in the form of specific securities with an active secondary market for the City held by
an independent third party. The only exceptions are Federal Depository Insurance Corporation (FDIC), Securities
Investor Protection Corporation (SIPC) and pre- approved insurance coverage. The City may collateralize its
repurchase agreements using longer- dated investments not to exceed 5 years to maturity.
B. Safekeeping and Custody
Securities purchased shall be held in a segregated account for the City’s benefit at a third party trustee as safekeeping
agent. The investment dealer or bank in which the security is purchased shall issue a confirmation ticket to the City
listing the specific instrument, issuer, coupon, maturity, CUSIP number, purchase or sale price, transaction date, and
other pertinent information. The financial service provider which executes the transaction on the City’s behalf shall
deliver all securities on a delivery versus payment method (DVP) to the designated third party. Delivery versus
payment (DVP) is a way of controlling the risk to which securities market participants are exposed. Delivery of
securities (i.e. the change in their ownership) is done simultaneously with payment. This means that neither the buyer
nor the seller is exposed to the risk that the other will default.
Investments, contracts, and agreements may be held in safekeeping with:
o any Federal Reserve bank;
o any bank authorized under the laws of the United States or any state to exercise corporate trust powers,
including, but not limited to, the bank from which the investment is purchased.
The City’s ownership of all securities should be evidenced by written acknowledgments identifying the securities by:
o The names of issuers
o The maturity dates
o The interest rates
o Any serial numbers or other distinguishing marks.
The City may not invest in securities that are uninsured. Securities will be held in the City’s designated accounts
under their street names.
C. Investment Credit Rating Degradation
Credit updates should be completed on all non-insured general obligation (GO’s), bankers’ acceptances and
commercial paper with a credit rating that has declined. Credit analysis is necessary to determine if a particular
investment is eligible for the City to own as part of prudent portfolio management. As determined on any date that
the security is held within the portfolio. If the credit rating of a security is subsequently downgraded below the
minimum rating level for a new investment of that security, the City shall evaluate the downgrade on a case-by-case
basis in order to determine if the security should be held or sold. The City will apply the general objectives of safety
liquidity and yield to make the decision.
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City of Crystal, Minnesota Financial Management Plan
Investment Policy (Continued)
D. Diversification
The City will substantially reduce the risk of loss resulting from the over-concentration of assets in a specific maturity,
issuer, institution, or class of securities. The City will structure investments to reduce the risk of loss resulting from
over-concentration.
E. Maximum Maturities
Fund Specific:
o A minimum of five percent of the portfolio will mature under 30 days,
o Total funds will be invested to a maximum maturity of ten years,
o Total weighted average maturity of total funds will not exceed 5 years, and
o Maturities will be diversified to avoid undue concentration of assets in a specific sector.
o Exception to maximum maturity is in reserve funds (per bond indentures), which may be invested
to a maturity date that coincides as nearly as practicable with the expected use of the funds.
o Should interest rates rise to a level of four percent on the ten-year Treasury, with written approval of
the City Manager, the Finance Director will have the authority of extending a maximum of 20 percent
of the City Portfolio between five and ten-year maturities.
F. Internal Control
The Finance Director is responsible for establishing and maintaining an internal control structure designed to
ensure that the assets of the City are protected from loss, theft or misuse. The internal control structure shall be
designed to provide reasonable assurance that these objectives are met. The concept of reasonable assurance
recognizes that (1) the cost of a control should not exceed the benefits likely to be derived; and (2) the valuation of
costs and benefits requires estimates and judgments. The internal controls are addressed in the procedures
manual.
The City will engage an external auditor for an annual independent review to assure compliance with policies and
procedures.
G. Performance Standards
The investment portfolio will be designed to obtain a market average rate of return during budgetary and economic
cycles, taking into account the City’s investment risk constraints and cash flow needs. The City will have at least 98%
of its cash funds earning interest or on deposit to reduce bank fees. The investment portfolio will be structured to meet
specific criteria addressing safety, liquidity and yield. The City’s reporting system will provide information concerning
cash position, investment performance, and percentage of the portfolio that is invested by security issuers and maturity
structure.
12. Market Yield/Benchmark
The City’s investment strategy is conservative. The City, based on appropriate current indexes and yields reported by
similar entities with similar restrictions on investments, will review whether market yields are being achieved.
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City of Crystal, Minnesota Financial Management Plan
Investment Policy (Continued)
13. Responsibilities of External Investment Managers
The City may enter into contracts with third-party investment advisory firms when their services are deemed to be
beneficial to the City. The advisor must comply with this Investment Policy and may have authority to transact investments
on behalf of the City. The advisor may only act on a non- discretionary basis if they are hired to provide transactional
services on behalf of the City.
14. Reporting
The Finance Director is charged with the responsibility of preparing a periodic investment report, including a
management summary that provides an analysis of the status of the current investment portfolio and the individual
transactions executed over the last period in the City’s Financial Reports. Reports will include listing of individual
securities held at the end of the reporting period, name of broker agent, listing of investments by maturity date, yield,
percentage of the total portfolio which each type of investment represents, gains or losses mark to market of all
securities and other information as requested by the City.
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Post-issuance Compliance Procedures
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City of Crystal, Minnesota Financial Management Plan
Post-issuance Tax Compliance Procedures for Tax-Exempt Bonds
Adopted by City Council on:
1. Purpose
A. These procedures are adopted by the Issuer to ensure that interest on tax-exempt bonds of the Issuer (the
“Bonds”) remains excludable from gross income under Section 103 of the Internal Revenue Code of 1986, as
amended (the “Code”).
B. These written procedures are intended to formally memorialize certain policies and practices of the Issuer
previously adopted or followed by the Issuer in connection with its issuance of Bonds. The Issuer reserves the
right to use its discretion as necessary and appropriate to make exceptions to these procedures as facts and
circumstances warrant.
2. Expenditure/Use Of Bond Proceeds
A. Expenditure of Bond proceeds will be regularly reviewed by the City Manager for consistency with the Bond
documents, including any Bond Resolution and the Issuer’s Tax Certificate.
B. The Issuer has separately established procedures for preparation and review of requests for Bond
proceeds as part of its accounting system.
C. Requests must identify the Bond-financed property in conformity with the Issuer’s Tax Certificate executed at
closing of the Bonds, including the character of the Bond-financed property. Such information is contained as
part of the Issuer’s accounting system coding.
D. None of the proceeds of the Bonds will be used to reimburse the Issuer for costs paid prior to the date of
issuance of the Bonds unless the Issuer shall have fully complied with Section 1.150-2 of the Treasury
Regulations with respect to such reimbursed amounts, which section is summarized in Exhibit A .
E. Staff costs may be financed with Bond proceeds only to the extent they are properly capitalized as a cost of
a capital project under generally accepted accounting principles and federal tax law.
F. Requests for expenditures will be summarized in a “final allocation” of Bond proceeds to uses not later than 18
months after the in-service date of the Bond-financed property (and in any event not later than 5 years and 60
days after the issuance of the Bonds and not later than 60 days after earlier retirement of the issue) in a manner
consistent with the Code and Treasury Regulations and the applicable Tax Certificate.
G. Expenditure of proceeds of the Bonds will be measured against the Issuer’s Tax Certificate expectation to spend
or commit 5% of net sale proceeds within 6 months, to spend 85% of net sale proceeds within 3 years, and to
proceed with due diligence to complete the capital project and fully spend the net sale and investment proceeds.
In the event that exceptions under the Code are not met, calculations of rebate liability will be performed or
caused to be performed by as provided herein.
H. If there are any Bond proceeds remaining other than in a reserve or debt service fund established pursuant to
the Bond Resolution after completion of the projects, such proceeds shall be applied in a manner consistent
with the applicable Bond Resolution and Tax Certificate or pursuant to advice from Bond Counsel.
I. In the event that Bond proceeds are to be used to make a grant to an unrelated party, a grant agreement will be
reviewed prior to execution for compliance with the Code. Such agreement will be approved by the City
Manager, with advice or consent of Bond Counsel, as necessary. The repayment of any portion of a grant by the
grantee shall be treated as unspent Bond proceeds.
J. In the event that Bond proceeds are to be loaned to a conduit borrower, such conduit borrower will be required
to agree to all terms of the Tax Certificate and provide evidence of post-issuance tax compliance procedures
deemed adequate and consistent with those set forth herein; and all such obligations for post-issuance tax
compliance shall be assumed by such conduit borrower. The City Manager shall be the primary contact for all
conduit borrowers and related compliance matters.
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City of Crystal, Minnesota Financial Management Plan
Post-issuance Tax Compliance Procedures for Tax-Exempt Bonds (Continued)
3. Use of Bond Financed Property
A. Use of Bond-financed property when completed and placed in service will be reviewed by the City Manager.
Appropriate city facility managers, including staff responsible for asset management, shall be trained
regarding restrictions on the use of Bond proceeds and facilities financed thereby and instructed to consult
with the City Manager regarding any third-party contract concerning use of the facilities, including without
limitation leases, use, m anagement or service contracts, and research contracts.
B. Upon issuance of Bonds, there shall be no expectation that the Bond-financed property will be sold or
otherwise disposed of by the Issuer during the term of the Bonds, except for replacement due to normal wear
and tear or obsolescence.
C. Agreements with third parties for lease, use, management, or any other service agreement or research contract
with respect to, or non-governmental use in respect of, Bond-financed property will be reviewed prior to
execution for compliance with the Code. Such agreement will be approved by the City Manager, who will be
responsible for determining whether the proposed agreement (1) results in private business use of the facilities,
and (2) if applicable, meets the compensation, term and other requirements under Revenue Procedures 97-13
(included as Exhibit B) and 2007-47; all upon advice of Bond Counsel, as necessary.
D. No item of Bond-financed property will be sold or transferred by the Issuer without approval of the City Manager,
who shall seek advice of Bond Counsel as necessary, to provide guidance as to “remedial action” that may be
required under the applicable Treasury Regulations if Bonds financing such property remain outstanding as of
the date of sale or transfer of such property. Remedial action is summarized in Exhibit C hereto.
E. The Issuer acknowledges that any sale, transfer, change in use, or change in users of the Bond-financed
property may require remedial action, as previously described, or resolution pursuant to the IRS Voluntary
Closing Agreement Program (or “VCAP”) to assist in resolving violations of the federal tax laws applicable to the
Bonds.
4. Investments
A. Investment of Bond proceeds in compliance with the arbitrage and rebate requirements of the Code and
applicable Treasury Regulations will be managed and supervised by City Finance Staff.
B. Guaranteed investment contracts (“GICs”) will be purchased according to the fair market value provisions
of applicable Treasury Regulations, including bid requirements and fee limitations.
C. Calculations of rebate liability will be performed annually, or as needed, by the City Finance Director or by
outside consultants as delegated by the City.
D. Upon final expenditure of the gross proceeds of Bonds, and in any event promptly following the fifth anniversary
of the date of issuance of the Bonds or earlier retirement of the Bonds, the City Manager will consult a qualified
professional to prepare a spending exception report or an arbitrage rebate computation (as applicable) for the
issue of Bonds.
E. Rebate payments, as required based upon the advice of a qualified professional, will be made with Form 8038-T
no later than 60 days after (a) each fifth anniversary of the date of issuance of the Bonds and (b) the final
retirement of the Bond issue.
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City of Crystal, Minnesota Financial Management Plan
Post-issuance Tax Compliance Procedures for Tax-Exempt Bonds (Continued)
5. Record Management and Retention
A. Management and retention of records related to Bond issues will be maintained by the City Manager.
B. Records for Bonds will be retained for not less than the life of the Bonds, plus any refunding bonds, plus three
years. Such records may be in the form of documents or electronic copies of documents, appropriately
indexed to specific Bond issues and compliance functions.
C. Retainable records pertaining to Bond issuance shall include a transcript of documents executed in
connection with the issuance of the Bonds and any amendments; and copies of rebate calculations and
records of payments, including Forms 8038-T.
D. Retainable records pertaining to expenditures of Bond proceeds include requisitions; trustee statements, if
applicable; and final allocation of proceeds.
E. Retainable records pertaining to use of Bond-financed property include all third-party contracts concerning
use of the facilities, including (without limitation) leases, use, management or service contracts, and
research contracts.
F. Retainable records pertaining to investments include GIC documents under the Treasury Regulations, records
of purchase and sale of other investments, and records of investment activity sufficient to permit calculation of
arbitrage rebate or demonstration that no rebate is due.
6. Overall Responsibility
A. Overall administration and coordination of this policy and the procedures set forth herein are the responsibility
of the City Manager.
B. Review of compliance with this policy and the procedures set forth herein shall be undertaken periodically, and in
any event, not less than annually.
C. The Issuer understands that failure to comply with these policies and procedures could result in the
retroactive loss of the exclusion of interest on Bonds from federal gross and Minnesota taxable net income;
and, thus, it would be advisable to consult with Bond Counsel in advance regarding deviations from the facts
and expectations as set forth in the closing certifications relating to any issue of Bonds.
D. Any violations or potential violations of federal tax requirements shall promptly be reported to the City
Manager, and the City Manager will engage qualified consultants and bond counsel to further investigate
potential violations or undertake appropriate remedial actions, which actions shall be approved by the
governing body of the Issuer.
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City of Crystal, Minnesota Financial Management Plan
EXHIBIT A
REIMBURSEMENT BOND SUMMARY
Following is a general summary of the requirements relating to bonds that are issued to reimburse expenditures that
were paid prior to the date of issuance of bonds (“Reimbursement Bonds”).
Reimbursement Bond proceeds cannot be used to reimburse expenditures paid more than 60 days prior to the
adoption of the declaration of official intent/reimbursement resolution, which must contain:
o a general functional description of the property to which the reimbursement relates or an identification of the fund
or account from which the expenditure is to be paid and a general functional description of the purposes of such
fund or account; and
o the maximum principal amount of debt to be issued.
Reimbursement Bonds must be issued not later than 18 months after the later of (i) the date on which the original
expenditure is paid, or (ii) the date on which the property is placed in service, but in any case not more than three years
after the date on which the original expenditure is paid. If possible, actual reimbursement should be made within 30 days
of the date of issuance of the Reimbursement Bonds.
Note that there are exceptions for “de minimis” amounts (not in excess of the lesser of $100,000 or 5% of proceeds of
the issue) and for “preliminary expenditures” (such as architectural, engineering, surveying, soil testing and similar costs
and costs of issuance), so long as such preliminary expenditures do not exceed 20% of the aggregate issue price.
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City of Crystal, Minnesota Financial Management Plan
EXHIBIT B
SUMMARY OF REVENUE PROCEDURE 97- 13
Background
A management, service or incentive payment contract with a private service provider with respect to tax exempt bond-
financed property may result in private business use of that property, based on all facts and circumstances. None of the
compensation may be based on a share of net profits.
Revenue Procedure 97-13 establishes conditions under which a management contract generally does not result in private
business use. Issuers and bond counsel typically attempt to satisfy, or substantially satisfy, one of these “safe harbors”
because of uncertainty as to the treatment of nonconforming contracts. Below is a brief summary of the provisions of Rev.
Proc. 93-17, as modified by Rev. Proc. 2001-39.
Rev. Proc. 93-17 establishes conditions based on (1) the compensation arrangements and the term of the agreement,
and (2) whether the service provider has any role or relationship with the “qualified user”1 that substantially limits the
qualified user’s ability to exercise its rights under the contract.
General Rules
In all events, the contract must provide for reasonable compensation for services rendered, with no compensation
based, in whole or in part, on a share of net profits from the operation of the facility. Reimbursement of the service
provider for actual and direct expenses paid by the service provider to unrelated parties is not by itself treated as
compensation.
The compensation, with the percentage determined by the term of the contract, subject to additional conditions, as
described under “Compensation Safe Harbors” below, generally may be computed by:
(A) a periodic fixed fee, which is a stated dollar amount for a specified period of time2;
(B) a percentage fee, which is a percentage of gross revenues (or adjusted gross revenues) of the facility or a
percentage of expenses of the facility, but not both;
(C) a capitation fee, which is a fixed periodic amount for each person for whom the service provider or the qualified
user assumes the responsibility to provide all needed services for a specified period so long as the quantity and
type of services actually provided to covered persons varies substantially3;
(D) a per-unit fee, which is a fee based on a unit of service specified in the contract or otherwise specifically
determined by an independent third party or the qualified user4; or
(E) a productivity reward equal to a stated dollar amount based on increases or decreases in gross revenues (or
adjusted gross revenues), or reductions in total expenses (but not both increases in gross revenues (or adjusted
gross revenues) and reductions in total expenses) in any annual period during the term of the contract.
1 A “qualified user” of the financed property is a state or local governmental unit (or instrumentality thereof) or a
501(c)(3) organization if the financed property is not used in an unrelated trade or business under section 513(a) of
the Internal Revenue Code.
2 A periodic fixed fee may include an automatic increase based on a specific, objective, external standard that is not
linked to the output or efficiency of the facility in question.
3 A capitation fee may include an automatic increase based on a specified, objective, external standard that is not
linked to the output or efficiency of the facility. A capitation fee may also include a variable component of up to 20
percent of the total capitation fee designed to protect the service provider against risks such as catastrophic loss.
4 A periodic fee may include an automatic increase based on a specified, objective, external standard that is not
linked to the output or efficiency of the facility.
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City of Crystal, Minnesota Financial Management Plan
EXHIBIT B (Continued)
SUMMARY OF REVENUE PROCEDURE 97- 13
The service provider must not have any role or relationship with the qualified user that, in effect, substantially limits the
qualified user’s ability to exercise its rights, including cancellation rights, under the contract based on all facts and
circumstances. The relationship does not limit the qualified user’s ability to exercise its rights if the following conditions
are satisfied: (1) not more than 20 percent of the voting power of the governing body of the qualified user in the
aggregate is vested in the service provider and its directors, officers, shareholders, and employees, (2) overlapping
board members do not include the chief executive officers of the service provider or its governing body or the qualified
user or its governing body, and (3) the qualified user and the service provider are not related parties.
Compensation Safe Harbors
A management contract generally will not result in private business use if the compensation arrangement meets the
criteria in one of the following categories:
50% Periodic Fixed Fee Contracts
o At least 50 percent of the compensation for services for each annual period during the term of the contract
is based on a periodic fixed fee;
o the term of the contract, including all renewal options5 in favor of the service provider, does not exceed 5
years; and
o the contract is terminable by the qualified user of the facility on reasonable notice, without penalty or
cause, at the end of the third year of the contract term.
80% Periodic Fixed Fee Contracts
o At least 80 percent of the compensation for services for each annual period during the term of the contract
is based on a periodic fixed fee; and
o the term of the contract, including all renewal options in favor of the service provider, does not exceed the
lesser of 80 percent of the reasonably expected useful life of the financed property and 10 years.
For purposes of this safe harbor (but not the 50% periodic fixed fee safe harbor), a one-time incentive award during the
term of the contract under which compensation automatically increases by a single, stated dollar amount when a gross
revenue or expense target (but not both) is reached may be considered part of a fixed fee arrangement.
95% Periodic Fixed Fee Contracts
o At least 95 percent of the compensation for services for each annual period during the term of the contract
is based on a periodic fixed fee; and
o the term of the contract, including all renewal options in favor of the service provider, does not exceed the
lesser of 80 percent of the reasonably expected useful life of the financed property and 15 years.
For purposes of this safe harbor (but not the 50% periodic fixed fee safe harbor), a one-time incentive award during the
term of the contract under which compensation automatically increases by a single, stated dollar amount when a gross
revenue or expense target (but not both) is reached may be considered part of a fixed fee arrangement.
5 A provision under which a contract is automatically renewed absent cancellation by either party is not a renewal
option (even if it is expected to be renewed).
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City of Crystal, Minnesota Financial Management Plan
EXHIBIT B (Continued)
SUMMARY OF REVENUE PROCEDURE 97- 13
Capitation Fee Contracts (with or without fixed fees)
o All of the compensation for services is based on a capitation fee or a combination of a capitation fee and a
periodic fixed fee;
o the term of the contract, including all renewal options in favor of the service provider, does not exceed 5 years;
and
o the contract is terminable by the qualified user of the facility on reasonable notice, without penalty or
cause, at the end of the third year of the contract term.
Per-unit Fee Contracts (with or without fixed fees)
o All of the compensation for services is based on a per-unit fee or a combination of a per-unit fee and a
periodic fixed fee;
o the term of the contract, including all renewal options in favor of the service provider, does not exceed 3 years;
and
o the contract is terminable by the qualified user of the facility on reasonable notice, without penalty or
cause, at the end of the second year of the contract term.
Percentage of Revenue or Expenses
o All the compensation for services is based on a percentage of fees charged or a combination of a per-unit
fee and a percentage of revenue or expense fee;
o the term of the contract, including all renewal options in favor of the service provider, does not exceed 2 years;
and
o the contract is terminable by the qualified user of the facility on reasonable notice, without penalty or
cause, at the end of the first year of the contract term.
During the start-up period, however, compensation may be based on a percentage of either gross revenues, adjusted
gross revenues, or expenses of a facility. The contract must be terminable by the qualified user on reasonable notice,
without penalty or cause, at the end of the first year of the contract term. This safe harbor applies only to contracts under
which the service provider primarily provides services to third parties and management contracts involving a facility
during an initial start-up period for which there have been insufficient operations to establish a reasonable estimate of
the amount of the annual gross revenues and expenses (for example, a contract for general management services for
the first year of operations).
Revision of Compensation Arrangements
Please note that if the compensation arrangements of a management contract are materially revised, the
compensation arrangements are “retested” as of the date of the material revision, and the management contract is
treated as one that was newly entered into as of the date of the material revision.
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City of Crystal, Minnesota Financial Management Plan
EXHIBIT C
REMEDIAL PROVISIONS APPLICABLE TO BONDS
The Issuer acknowledges that any deliberate action by the Issuer after Bond issuance that results in a satisfaction of the
private business tests or the private loan test will result in private activity bond status unless one or more qualifying
remedial actions are taken by the Issuer. Specifically, Treasury Regulations provide that actions are not treated as
deliberate actions if (A) five conditional requirements are met, and (B) one of three remedial actions is taken, with
respect to the disposition proceeds and nonqualified bonds:
Conditional Requirements
1. Reasonable Expectations – The Issuer reasonably expected on the issue date that it would not meet the private
business tests or the private loan test for the whole term of the bonds; and
2. Reasonable Bond Maturity – The term of the issue must not be unreasonably long; this requirement is met if the
weighted average maturity of the bond issue is not greater than 120% of the expected economic life of the
property financed; and
3. Fair Market Value Consideration – The terms of any agreement (relating to satisfaction of a private activity bond
test) must be bona fide and at arm’s-length, and the new user must pay a fair market value consideration for the
use of the bond- financed property; and
4. Disposition Proceeds Are Gross Proceeds – The Issuer must treat any disposition proceeds as gross
proceeds subject to arbitrage/rebate restrictions; and
5. Proceeds Spent for Authorized Purpose – Except as described with respect to redemption and defeasance options
below, prior to deliberate actions, the affected proceeds must have been spent for the authorized purposes under the
applicable bond documents.
Remedial Actions – Under Treasury Regulations, Sections 1.141-12(d), (e) and (f):
1. Redemption of Non-Qualified Bonds – Under the general rule, all nonqualified bonds of the issue must be redeemed.
Tax- exempt bond proceeds (i.e., refunding bond proceeds) cannot be used unless the tax-exempt bonds are
qualified bonds, taking into account the purchaser’s use of the facility. The bonds must be redeemed within 90 days
of the date of the deliberate action or a defeasance escrow for the bonds must be established within such 90-day
period. Special rules apply to transfers exclusively for cash and to defeasance escrows.
2. Alternative Use of Disposition Proceeds – To meet this requirement, all disposition proceeds must be in cash, the
issuer must reasonably expect to expend the proceeds within 2 years, the new use must not meet the private
business tests or the private loan test (and the issuer cannot take any action subsequent to the date of the deliberate
action to cause the tests to be met), and any unused proceeds must satisfy the redemption requirement in the
preceding paragraph.
∗ The portion of the outstanding bonds in an amount that, if the remaining bonds were issued on the date on which
the deliberate action occurs, the remaining bonds would not satisfy the private business use test or the private
loan financing test, as applicable. The amount of private business use is the highest percentage of business use
in any one-year period, commencing with the deliberate action
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City of Crystal, Minnesota Financial Management Plan
EXHIBIT C (Continued)
REMEDIAL PROVISIONS APPLICABLE TO BONDS
3. Alternative Use of Facility – This remedial action is satisfied if the bond-financed property itself (as distinguished
from the proceeds of the issue) is used in an alternative manner (e.g., for a different purpose or by a different
person); the nonqualified bonds are treated as reissued on the date of the deliberate action and independently meet
all of the requirements for tax exemption under Sections 141 through 150 of the Code, except the arbitrage and
rebate rules of Section 148, for the remaining term of the nonqualified bonds; the deliberate action does not involve
a transfer of the property to a purchaser that finances the acquisition with the proceeds of another issue of tax-
exempt bonds; and any disposition proceeds, other than those arising from an agreement to provide services,
resulting from the deliberate action are used to pay debt service on the bonds on the next available payment date or
escrowed within 90 days of receipt and yield restricted to pay debt service on the next available payment date.
The above is only a brief summary of remedial actions, and additional special rules may be applicable. As provided in the
Issuer’s Compliance Procedures for Tax-Exempt Bonds, the City Manager shall seek advice of Bond Counsel as
necessary to provide guidance as to “remedial action” that may be required under the applicable Treasury Regulations.
The Commissioner of the IRS may, by publication, provide for additional remedial actions. In addition, the IRS provides a
program in which issuers/borrowers which cannot meet a listed remedial action can enter into a closing agreement with
the IRS to avoid private activity bond status. The closing agreement program includes several conditions, including
providing for the redemption of the bonds and paying the IRS an amount based on an assumption that the non-qualified
bonds are taxable from the date of the subsequent act until they are redeemed.
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Revenue
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City of Crystal, Minnesota Financial Management Plan
Revenue Policy
Adopted by City Council on:
Purpose
1. To provide a diversified and strong set of revenues to ensure a stable revenue system for City programs and services.
2. To match revenues with similar uses to ensure adequate funding for the various City services and programs over the
long-term.
Policy
The City will endeavor to maintain a diversified and stable revenue system to shelter it from annual fluctuations in
any one revenue source.
The City will conservatively estimate and budget for its annual revenues by an objective, analytical process. All existing
and potential revenue sources will be re-examined annually.
Absent any outside legal restrictions, all Federal, State, County, or other grants, should be formally designated, by
resolution, towards a specific program or service. When possible, general purpose aids shall only be used for capital
or non- recurring expenditures and not for on-going operations.
The City will strive to establish all user charges and fees for General Fund program activities at a level related to the
full cost of providing the services, or as adjusted for particular program goals. The City will review the full cost of
activities supported by user fees to identify the impact of inflation and other cost increases and will review these fees
along with the resulting net property tax costs during the budget process. Sensitivity to market rates will also be
considered in setting fees.
The City will set fees and user charges for each enterprise fund such as water, sewer, storm water or street lights at a
level that fully supports the total direct and indirect cost of the activity, including depreciation of capital assets and debt
service, to maintain a positive cash flow and provide adequate working capital. Replacement (or bonding for
replacement) of enterprise infrastructure will be paid for from accumulated (or annual) earnings of the respective
system.
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Risk Management
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City of Crystal, Minnesota Financial Management Plan
Risk Management Policy
Adopted by City Council on:
Purpose
To maintain a risk management program that will minimize the impact of legal liabilities, natural disasters or other
emergencies through the following activities:
1. Loss prevention - prevent losses where possible
2. Loss control - reduce or mitigate losses
3. Loss financing - provide a means to finance losses
4. Loss information management - collect and analyze data to make prudent prevention, control and financing
decisions
Policy
The City will review and analyze all areas of risk in order to, whenever possible, avoid and reduce risks or transfer risks
to other entities. Of the risks that must be retained, it shall be the policy to fund the risks which the City can afford and
transfer all other risks to insurers.
The City will periodically conduct educational safety and risk avoidance programs within the various departments.
The City will, on an ongoing basis, analyze the feasibility of self-funding and other cooperative funding options in
lieu of purchasing outside insurance in order to provide the best and most economical loss coverage available.
The City will maintain the deductible amount considered prudent in light of the relationship between the cost of insurance
and the City’s ability to sustain the loss.
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Tax Abatement
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City of Crystal, Minnesota Financial Management Plan
Tax Abatement Policy
Adopted by City Council on:
1. Purpose
The purpose of this policy is to establish the City of Crystal and the Crystal Economic Development Authority’s (City/EDA)
position as it relates to the use of Tax Abatement for private development. This policy shall be used as a guide in processing
and reviewing applications requesting business assistance, and in conjunction with the City’s Business Assistance Policy.
The City shall have the option of amending or waiving sections of this policy when determined necessary or appropriate.
2. Statutory Limitations
In accordance with the City/EDA’s Tax Abatement Policy, assistance requests must comply with applicable State Statutes.
MN Statutes, Sections 469.1812 through 469.1815, authorizes a political subdivision to utilize property tax abatement on
certain parcels of land within its boundaries.
3. Policy Background
A. The City/EDA recognizes that local government plays a critical role in enhancing the vitality of our community.
This is particularly true as the City reaches full development.
B. All reasonable means shall be utilized to leverage private business development and redevelopment in the City
consistent with this and other policies. Tax abatement is an important and useful tool in attracting and retaining
businesses.
C. The tax abatement tool provides the ability to capture and use all or a portion of the property tax revenues within
a defined geographic area. In practice, it is a tax “rebate” rather than an exemption from paying property taxes.
Tax abatement is an important economic development tool that when used appropriately can be useful to
accomplish the City/EDA’s development and redevelopment goals and objectives. Requests for tax abatement
must serve to accomplish the City’s targeted goals for development and redevelopment. These goals include, but
are not limited to projects that will result in the creation or retention of a significant number of jobs that pay wages
adequate to support households, projects that will assist with the retention and expansion of businesses, and
projects that will expand the City’s tax base. Projects must meet the requirements established by the Business
Assistance Policy of the City/EDA, to the extent it is applicable, in order to receive abatement.
4. Project Eligibility
Projects eligible for consideration of property tax abatement include but are not limited to the following:
o Mixed use projects including new and redevelopment projects
o Commercial and industrial redevelopment projects
o New commercial and industrial developments
o Residential business properties (with some restrictions as defined in this policy)
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City of Crystal, Minnesota Financial Management Plan
Tax Abatement Policy (Continued)
5. Objectives
A. A property tax abatement must meet at least one of the following public purposes:
o Increase or preserve the tax base
o Provide employment opportunities in the City
o Provide or help acquire or construct public facilities
o Help redevelop or renew blighted areas
o Help provide access to services for City residents
o Finance or provide public infrastructure
B. The developer/landowner shall be able to demonstrate a market demand for a proposed project.
C. Tax abatement shall not be used for projects that would place extraordinary demands on City services or for projects
that would generate significant environmental impacts.
D. Because it is not possible to anticipate every type of project, which may in its context and time present desirable
community building, development, or redevelopment goals and objectives, the City/EDA retains the right in its
discretion to approve projects and tax abatements that may vary from the principles and criteria of this policy.
6. Determination of Amount of Assistance
A. Tax abatement assistance available shall generally be limited to the incremental taxes generated on the
improvements to the property. The City/EDA may consider a greater level of financial assistance, up to the
maximum allowed under Minnesota Statutes, in limited circumstances. The level of assistance will be evaluated
on a case-by-case basis and may reflect an increase or decrease in requested financial assistance from the
applicant.
B. The amount of tax abatement assistance provided to an applicant shall be based on a review of the following:
o Request for Financial Assistance Form
o Review of Applicant Pro Forma
o Amount of Increment Generated by the Project
C. In any year, the total amount of property taxes abated (City-wide) may not exceed (5) five percent of the current
levy. The limit does not apply to an uncollected abatement from a prior year that is added to the abatement levy.
D. The developer/landowner must adequately demonstrate, to the City/EDA’s sole satisfaction, an ability to complete
the proposed project based on past development experience, general reputation, and credit history, among other
factors, including the size and scope of the proposed project. The developer/landowner must provide adequate
financial guarantees to ensure completion of the project, including, but not limited to: assessment agreements and
letters of credit.
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City of Crystal, Minnesota Financial Management Plan
Tax Abatement Policy (Continued)
7. Forms of Assistance
A. Tax abatement shall generally be provided on a “pay-as-you-go” basis wherein the City/EDA compensates the
applicant for a predetermined amount for stated number of years. In all cases, semi-annual abatement payments
are based on available (as approved by agreement) tax revenue from the property and issued to the applicant
after payment of property taxes by the applicant.
B. Another form of assistance that shall be considered only in extraordinary circumstances is an “up-front payment”
to the applicant. This may be in the form of a revenue or general obligation bond or an internal loan. (The City/EDA
would consider revenue bond financing where the terms of the financing are satisfactory to the City/EDA.) The tax
increment generated from the applicant’s project is a source of revenue for repayment of the bonds or loan. This
form of assistance is not one the City/EDA will generally consider because under this form of assistance the
taxpayers assume the risk that the tax increment will be sufficient for repayment of the bonds or the interfund loan.
8. Duration and Restrictions
A. The City/EDA may grant an abatement for a period no longer than 15 years, except as provided under 8B. The
City/EDA may specify in the abatement resolution a shorter duration.
B. The City/EDA, when proposing to abate taxes for a parcel, may make a written request to Hennepin County or a
Independent School District 281 in which a parcel is located to grant an abatement of county or school taxes for
the property. If one of the two political subdivisions declines, in writing, to grant an abatement or if 90 days pass
after receipt of the request to grant an abatement without a written response from one of the political subdivisions,
the duration limit for an abatement for the parcel may be increased to 20 years.
C. The City/EDA may not enter into a property tax abatement agreement that provides for abatement of taxes on a
parcel, if the abatement will occur while the parcel is located in a tax increment financing district.
9. Application
A. The City/EDA will require a deposit in the amount of $5,000 from the applicant to investigate the feasibility of
providing assistance to the applicant. If the City/EDA incurs additional expense beyond the $5,000 prior to
execution of the Developer’s Agreement, the City/EDA shall notify the applicant in writing and the applicant must
deposit additional funds for work on the application to continue. If the project is approved and the applicant
proceeds with the project, the applicant’s deposit may be reimbursed as an eligible project cost to the extent
permissible under MN Statutes.
B. In addition to the $5,000 deposit fee, the applicant must submit the following forms and documentation at time of
application for the application to be complete and review of the application to begin:
o Request for Financial Assistance Form
o Project Pro Forma Documentation (Developed by Applicant)
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Tax Increment Financing
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City of Crystal, Minnesota Financial Management Plan
Tax Increment Financing Policy
Adopted by City Council on:
1. Purpose
The purpose of this policy is to establish the City of Crystal and the Crystal Economic Development Authority’s
(City/EDA) position as it relates to the use of Tax Increment Financing (TIF) for private development. This policy shall be
used as a guide in processing and reviewing applications requesting business assistance, and in conjunction with the
City/EDA’s Business Assistance Policy. The City/EDA shall have the option of amending or waiving sections of this
policy when determined necessary or appropriate.
2. Statutory Limitations
In accordance with the City/EDA’s Tax Increment Financing Policy, assistance requests must comply with applicable
State Statutes. Minnesota Statutes, Section 469.174 through 469.179 (Tax Increment Finance Act), as amended,
authorizes local governments to utilize Tax Increment Financing to assist development and redevelopment of certain
parcels within its boundaries.
3. Policy Background
A. The City/EDA recognizes that local government plays a critical role in enhancing the vitality of our
community. This is particularly true as the City reaches full development.
B. All reasonable means shall be utilized to leverage private business development and redevelopment in the
City consistent with this and other policies. Tax increment financing is an important and useful tool in
attracting and retaining businesses.
C. The fundamental principle that makes tax increment financing viable is that it is designed to encourage
development that would not otherwise occur. The City/EDA shall be responsible to determine that (1) a project
would not occur “but for” the assistance provided through tax increment financing; and (2) no other
development would occur on the relevant site without tax increment assistance, that could create a larger
market value increase than the increase expected from the proposed development (after adjusting for the
value of the tax increment).
D. The City/EDA shall consider tax increment financing in cases that serve to accomplish targeted City goals for
development and redevelopment as they may change over time. These goals include, but are not limited to
projects that will (1) foster and support redevelopment; (2) result in the creation or retention of a significant
number of jobs that pay wages adequate to support households; or (3) assist with the retention and expansion
of businesses, and (4) expand the City’s tax base.
4. Creation of TIF Districts
A. The City/EDA shall consider the creation of any of the general types of TIF Districts allowed by Minnesota Statutes
or the creation of other types of TIF Districts allowed by Special Legislation, when doing so is consistent with the
development and redevelopment goals of the City/EDA.
B. TIF Districts are the specific parcels within a Project Area from which tax increment is captured. MN Statutes
currently defines five general types of TIF Districts which the City/EDA shall consider:
o Redevelopment District
o Renewal and Renovation District
o Soils Condition District
o Housing District
o Economic Development District
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City of Crystal, Minnesota Financial Management Plan
Tax Increment Financing Policy (Continued)
C. In addition to these five general types of TIF Districts, defined by Minnesota Statutes, the City/EDA may also
consider the creation of TIF Districts as authorized by applicable special tax increment financing legislation.
D. The City/EDA shall consider the creation of a TIF District based on qualifications and term restrictions, as defined in
Minnesota Statutes. The City/EDA shall consider a range of attributes including but not limited to the following:
o Projects consistent with development and redevelopment goals of the City/EDA
o Development of office, office/corporate headquarters, office/service/warehouse and manufacturing
o Removal of hazardous structures
o Maximized use of other financial resources
o Projects that provide funding for appropriate public improvements that may benefit numerous development
projects
o Low percentage of public investment; high percentage of private investment
o Analysis of detailed business pro forma with reasonable timeline for completion and occupancy
o Project has potential to enhance spin-off development and redevelopment
o Exceeds minimum design standards per City Ordinance
o Presents minimal risk to the City/EDA
o Maximizes increased tax base and contributes to higher market values
o Number of jobs and pay level of positions will be a consideration but not a requirement if other appropriate
public purpose(s) is met
5. Eligible Costs
The City/EDA shall consider the use of tax increment financing to cover project costs as allowed for under Minnesota
Statutes. The types of project costs that are eligible for tax increment financing (under current state law) are as follows:
o TIF application deposit
o Architectural and engineering fees directly
attributable to site work
o Earthwork/excavation
o Landscaping
o Streets and roads
o Street/parking lot lighting
o Sidewalks
o Special assessments
o Soils test and environmental studies
o Site related permits
o Soils correction
o Utilities (sanitary sewer, storm sewer, and
water)
o Street/parking lot paving
o Curb and gutter
o Land acquisition
o Legal (acquisition, financing, and closing
fees)
o Surveys
o Title insurance
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City of Crystal, Minnesota Financial Management Plan
Tax Increment Financing Policy (Continued)
6. Determination of Amount of Assistance
A. Whether in a new or existing TIF District, the amount of tax increment financing provided to an applicant shall be
based on a review of the following:
B. Minimum qualifications
o The project should meet one or more of the Tax Increment Financing Objectives outlined in section 2. But at
a minimum shall:
o Remove blight and/or encourage high quality development or redevelopment and private reinvestment.
o Facilitate the redevelopment process and achieve redevelopment on sites that would not be redeveloped
without this assistance.
o The developer must demonstrate that the project is not financially feasible "but-for" the use of tax increment
financing.
o The project must be consistent with the City's Comprehensive Plan and Zoning Ordinance, or required
changes to the plan and ordinances must be under active consideration by the City at the time of final TIF
application submittal.
o Prior to approval of a TIF financing plan, the developer shall provide any requested market and financial
feasibility studies, appraisals, soil boring, private lender commitment, and/or other information the City or its
financial consultants may require in order to proceed with an independent underwriting of the proposal.
o The developer must provide adequate financial guarantees to ensure the repayment of the TIF loan and
completion of the project. These may include, but are not limited to: assessment agreements, letters of credit,
personal deficiency guarantees, guaranteed maximum cost contract, etc.
o Request for Financial Assistance Form
o Review of Applicant Pro Forma
o Amount of Increment Generated by the Project
C. The level of assistance shall be evaluated on a case-by-case basis and may reflect an increase or decrease in
requested financial assistance. When considering a request for tax increment financing for a project, there shall
be consideration of the level of financial assistance provided for other previously approved projects in the TIF
District or Project Area.
7. Forms of Assistance
A. Tax increment financing shall generally be provided on a “pay-as-you-go” basis wherein the City/EDA
compensates the applicant for a predetermined amount for a stated number of years. The City/EDA shall have the
option to issue a TIF Note with or without interest, where the principal amount of the TIF Note is equal to the
amount of eligible project costs incurred and proven by the developer. In all cases, semi-annual TIF payments shall
be based on available increment generated from the project. TIF payments shall be made after collection of
property taxes.
B. Another form of assistance that shall be considered only in extraordinary circumstances is an “up-front payment”
to the applicant. This may be in the form of revenue or general obligation bond or an internal loan. The tax increment
generated from the applicant’s project is a source of revenue for repayment of the bonds or loan. This form of
assistance is not one the City/EDA will generally consider because under this form of assistance the City/EDA
assumes the risk that the tax increment will be sufficient for repayment of the bonds or interfund loan.
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City of Crystal, Minnesota Financial Management Plan
Tax Increment Financing Policy (Continued)
8. Application
A. The City/EDA will require a deposit in the amount of $10,000 from the applicant to investigate the feasibility of
providing assistance to the applicant. If the City incurs additional expense beyond the $10,000 prior to execution
of the Developer’s Agreement, the City/EDA shall notify the applicant in writing and the applicant must deposit
additional funds for work on the application to continue. If the project is approved and the applicant proceeds with
the project, the applicant’s deposit may be reimbursed as an eligible project cost to the extent permissible under
MN Statutes.
B. In addition to the $10,000 deposit fee, the applicant must submit the following forms and documentation at time of
application for the application to be complete and review of the application to begin:
o Request for Financial Assistance Form
o Project Pro Forma Documentation (Developed by Applicant) Provide the following required supplemental
information:
o Project Pro Formas (one showing with assistance and one without assistance)
o Legal description of the property
o Non-Refundable application fee of $2,000 for TIF projects and $5,000 for Abatement projects payable to
the City of Crystal
o Site plan and building rendering
In addition to the required information from above (items 1-14), the following information is requested and will be
considered as part of the application approval process:
A. Provide number of years in business
B. Provide number of years located in the City of Crystal (if applicable)
C. Describe potential for business growth or future development
D. Explain whether the building will be owner-occupied (Yes/No)
E. If rental space, provide the targeted rental rates
F. Provide land costs per acre or square foot
G. Provide the projected building cost per square foot
H. Provide documentation as to private financial commitment and amount
I. Provide details of financial structure of the deal including developer equity
J. Additional comments
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