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2018.10.11 Work Session Packet 4141 Douglas Drive North • Crystal, Minnesota 55422-1696 Tel: (763) 531-1000 • Fax: (763) 531-1188 • www.crystalmn.gov Posted: October 5, 2018 City Council Work Session Agenda Oct. 11, 2018 6:30 p.m. Conference Room A Pursuant to due call and notice given in the manner prescribed by Section 3.01 of the City Charter, the work session of the Crystal City Council was held at ______ p.m. on Oct. 11, 2018 in Conference Room A, 4141 Douglas Dr. N., Crystal, Minnesota. I. Attendance Council Members Staff ____ Deshler ____ Norris ____ Kolb ____ Gilchrist ____ LaRoche ____ Revering ____ Parsons ____ Sutter ____ Adams ____ McGann ____ Budziszewski ____ Ray ____ Dahl II. Agenda The purpose of the work session is to discuss the following agenda items: 1. Draft of City Code Chapter 13. 2. Soils at 2949 Yukon* 3. Utility rate study. 4. 2019 fee schedule. 5. Long term capital plan. 6. Financial policies. * 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 Crystal, Minnesota October 11, 2018 W ater and Sanitary Sewer R ate Study City of Crystal, Minnesota Water and Sanitary Sewer Rate Study Table of Contents October 11, 2018 Page No. Introductory Section I.Introduction 4 II.Assumptions 5 III.Water and Sanitary Sewer Rate Study 8 Summary Water and Sanitary Sewer Rate Study 18 Storm Drainage 20 Supplementary Information Quarterly Bill Comparison 22 Sanitary Sewer and Water Fund Cash Flow Projections Schedule of Cash Flows - Water - Scenario 1 - Current State 26 Schedule of Cash Flows - Water - Scenario 2 - Increase Spread Over Several Periods to Achieve Target 27 Schedule of Cash Flows - Sanitary Sewer - Scenario 1 - Current State 28 Schedule of Cash Flows - Sanitary Sewer - Scenario 2 - Increase Spread Over Several Periods to Achieve Target 29 Schedule of Cash Flows - Storm Drainage - Based on City Council Discussions During 2018 Budget Process 30 2 INTRODUCTORY SECTION CITY OF CRYSTAL CRYSTAL, MINNESOTA 3 City of Crystal, Minnesota Water and Sanitary Sewer Rate Study October 11, 2018 I. Introduction The City of Crystal , Minnesota (the City) owns and operates the Water, Sanitary Sewer and Storm Drainage utilities and is responsible for maintaining the infrastructure to serve the residents. The City’s infrastructure (water, sanitary sewer, storm drainage) is 40-60 years old and in need of maintenance and replacement. The City is adopting a more proactive approach with an intentional focus on planning and coordinating projects. As part of this proactive approach, the City is developing and implementing a long term plan for its utilities and the rate analysis provided here is a significant step in this challenging process. The City has four customer classes, Commercial, Industrial, Institutional and Residential. The tables below summarize the number of customers by class. W ater service is billed based on consumption and Sanitary Sewer service is currently a flat rate. Billing is done on a quarterly basis with one third of the city billed each month. Customer Class Number of Accounts Residential 7,693 Commercial 213 Industrial 24 Institutional 23 Grand Total 7,953 This rate study analyzes the cash flows of the Water and Sanitary Sewer utilities of the City. Sources and uses of cash are projected for the years ending December 31, 2018 to December 31, 2028. The study uses the current number and type of accounts to project future revenue at a suggested rate for each of the utility funds, each year. This rate study does not analyze the Storm Drainage Utility but rather provides rate and financial projections based on discussions held by the City Council during the 2018 budget process. Annual capital costs are projected separately for each of the funds for the projection period. The City has a Capital Improvement Plan (CIP) that goes from 2018 to 2028. The financial projection is based on billings at the current rate with an inflationary increase Scenario 1 and increased variedly over a number of periods in Scenario 2. Expense assumptions are outlined in the assumptions section on the following page and present, to the best of management’s knowledge and belief, the City’s expected results of cash flows for the projection period if such uses of cash occur. Accordingly, the projection reflects management’s judgment, as of the date of this projection, of the expected conditions and the City’s expected course of action if such usage and expense totals were attained. The presentation is designed to provide information to the City Council concerning recovery of expenses that might be achieved if rates were adjusted and should not be considered to be a presentation of expected future results. Accordingly, this projection may not be useful for other purposes. The assumptions disclosed herein are those that management believes are significant to the projection. Furthermore, there will usually be differences between projected and actual results, because events and circumstances frequently do not occur as expected and those differences may be material. 4 City of Crystal, Minnesota Water and Sanitary Sewer Rate Study October 11, 2018 II. Assumptions Water Fund • Both scenarios assume fees are inflated at least 3% annually. Scenario 2 assumes additional increases to the inflationary increase over several years to meet the targets. • Operating expense inflation is assumed to be 3%. • An increase in residential users is estimated at an average of 36 users from 2019 - 2028 based on estimated population increase estimates for 2018 - 2025 provided by the City. Additional billing revenues is assumed at the average consumption rate of 9,000 gallons for water quarterly. • Planned acquisition of capital assets is taken from the City CIP and the average for those five years is used as an estimate for years 2024 through 2028. • The City currently charges a State Water Testing Fee of $1.59 per quarter. This fee is not included in the calculations as it is pass-through revenue. • The projections are based on a Meter Fee assumed to be $5.85 for a 5/8 inch meter as indicated in the table below. It is recommended the City charge a Meter Fee based on meter size with increases based on an equivalent meter ratio. A sample table is presented below. Meter Size Equivalent Meter Ratio Proposed Meter Fee 5/8-Inch 1.0 5.85$ 3/4-Inch 1.1 6.44 1-Inch 1.4 8.19 1 1/2-Inch 1.8 10.53 2-Inch 2.9 16.97 3-Inch 11.0 64.35 4-Inch 14.0 81.90 6-Inch 21.0 122.85 8-Inch 29.0 169.65 Meter Size Residential Commercial Industrial Institutional Total 5/8-Inch 6,147 54 3 3 6,207 3/4-Inch 1,535 36 1 - 1,572 1-Inch 20 41 5 4 70 1 1/2-Inch 23 34 8 5 70 2-Inch 3 25 5 5 38 3-Inch 16 5 - 4 25 4-Inch 2 2 - - 4 6-Inch 1 - - - 1 Total 7,747 197 22 21 7,987 Estimated Number of Meters • Target cash reserve will be set at 100% of the following year’s debt service and average capital and 50% of the following years operating expenses. The Water utility currently does not have any debt. Based on the current state, the cash balance will not be sufficient to meet the target and operating cash will not generate enough surplus to cover the following year’s operating expenses. Scenario 2 creates positive cash flow sufficient to hit the targeted cash balance by the end of the projection. 5 City of Crystal, Minnesota Water and Sanitary Sewer Rate Study October 11, 2018 II. Assumptions (Continued) Sanitary Sewer Fund • Both scenarios assume fees are inflated at least 3% annually. Scenario 2 assumes additional increases to the rates are applied over several periods. • Operating expense inflation is assumed to be 3%. • An increase in residential users is estimated at an average of 36 users from 2019 – 2028 based on estimated population increase estimates for 2018 - 2025 provided by the City. Additional billing revenues is assumed at the average consumption rate for water of 9,000 gallons based on the winter water consumption average rate for the months of November, December, January, February and March of 2017. • Planned acquisition of capital assets is taken from the City CIP and the average for those five years is used as an estimate for years 2024 through 2028. • Target cash reserve will be set at 100% of the following year’s debt service and average capital and 50% of the following years operating expenses. The Sanitary Sewer utility does not have any debt. Based on the current state, the cash balance will not be sufficient to meet the target and operating cash will not generate enough surplus to cover the following year’s operating expenses. Scenario 2 creates positive cash flow sufficient to hit the targeted cash balance by the end of the projection. A schedule of the planned capital projects are listed below. The assumption is that the City will be doing these projects at some point during the projection period. Water 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 Gate valve and hydrant replacements 50,000$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ 6235 -Gate Valve and Hydrant replacement - 75,000 - 75,000 - 75,000 - - - - - 6207 - Upgrade Sensus meter software - - 30,000 - - - - - - - - 6220- Water main replacement/relining - 100,000 400,000 600,000 600,000 600,000 600,000 600,000 600,000 600,000 600,000 June Ave water main replacement (with Blue Line)- - 200,000 - - - - - - - - 6205 - Water Utility Replace #432 - 2008 Ford F150 - 50,000 - - - - - - - - - 6237- water utility Replace #434 - 1996 Air Compressor - - - - - 30,000 - - - - - Equipment Replacement - 50,000 - - - 60,000 26,000 2,000 121,200 71,950 - 50,000$ 275,000$ 630,000$ 675,000$ 600,000$ 765,000$ 626,000$ 602,000$ 721,200$ 671,950$ 600,000$ 446,000$ Total Water Fund Capital Average annual cost over a 5 year period Sanitary Sewer 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 Back-up pump - South lift station #9 20,000$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ Three phase power - South lift station #9 50,000 - - - - - - - - - - Reline sewer - 30" CIPP 2002-10 50,000 - - - - - - - - - - Add emerg generator - Welcome Av lift station #5 50,000 - - - - - - - - - - Replace manhole covers 225,000 - - - - - - - - - - 6504 - Sanitary Sewer Replacement (lining, dig up)- 600,000 600,000 600,000 600,000 600,000 600,000 600,000 600,000 600,000 600,000 Install Pad mount Generator at West Lift Station - - 50,000 - - - - - - - - 20 Kw portable generator with light tower (replace existing 37kW)- - - - 20,000 - - - - - - Equipment Replacement - - 40,000 - 220,000 60,000 26,000 2,000 121,200 71,950 17,500 Total Sewer Fund Capital 395,000$ 600,000$ 690,000$ 600,000$ 840,000$ 660,000$ 626,000$ 602,000$ 721,200$ 671,950$ 617,500$ Average annual cost over a 5 year period 625,000$ 6 City of Crystal, Minnesota Water and Sanitary Sewer Rate Study October 11, 2018 II. Assumptions (Continued) A schedule of the projected increase in billing revenue from new residents for the Residential customer class is presented below. Increase in Billing Revenue 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 Total Estimated Population 22,676 22,700 22,748 22,784 22,820 22,856 22,892 22,928 22,964 23,000 Estimated increase in residential users 36 24 48 36 36 36 36 Average (based on 2019 - 2025)36 36 36 36 36 36 36 36 36 36 Total new population 35 71 107 143 179 215 251 287 323 359 Average residential quarterly bill (10,000 gallons) Water 68.69$ 77.62$ 86.16$ 93.91$ 100.49$ 105.51$ 108.68$ 111.94$ 115.29$ 118.75$ Sanitary Sewer 47.33 53.01 58.31 62.97 66.75 69.42 71.50 73.65 75.86 78.13 Annual increase in billing revenue Water 9,617$ 22,044$ 36,876$ 53,718$ 71,948$ 90,739$ 109,110$ 128,502$ 148,960$ 170,529$ Sanitary Sewer 6,626 15,053 24,955 36,019 47,792 59,700 71,787 84,546 98,005 112,196 7 City of Crystal, Minnesota Water and Sanitary Sewer Rate Study October 11, 2018 III. Water Rate Study Water Utility Operating Fund Goal • The Water fund will maintain a targeted cash balance sufficient to cover operations, capital and debt service. Targeted cash balance for the fund refers to the following years’ debt service obligations well as 50 percent of estimated operating costs. Rates A summary of the current rates and proposed rates are listed below. Allowing for annual inflationary increase in rates will not result in cash flows necessary to achieve the annual targets. Scenario 2 shows the proposed rates that will result in cash flows to meet the annual targets. Scenario 2 - Proposed Rates Proposed Rates Water - Residential Current 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 Quarterly bill based on 9,000 gallons 56.10$ 68.69$ 77.62$ 86.16$ 93.91$ 100.49$ 105.51$ 108.68$ 111.94$ 115.29$ 118.75$ Quarterly $ increase for a 9,000 gallon user 12.59 8.93 8.54 7.75 6.57 5.02 3.17 3.26 3.36 3.46 Annual $ increase for an average 9,000 gallon user 50.36 35.72 34.15 31.02 26.30 20.10 12.66 13.04 13.43 13.84 Base Fee 4.80$ 11.54$ 13.04$ 14.47$ 15.78$ 16.88$ 17.73$ 18.26$ 18.81$ 19.37$ 19.95$ Meter Fee -$ 5.85$ 6.61$ 7.34$ 8.00$ 8.56$ 8.99$ 9.26$ 9.53$ 9.82$ 10.11$ Consumption Fee - Per 1,000 gallons 0 30,000 5.70$ 5.70$ 6.44$ 7.15$ 7.79$ 8.34$ 8.76$ 9.02$ 9.29$ 9.57$ 9.85$ 30,001 60,000 6.30$ 6.30$ 7.12$ 7.90$ 8.61$ 9.22$ 9.68$ 9.97$ 10.27$ 10.57$ 10.89$ 60,001 999,999,999 6.60$ 6.60$ 7.46$ 8.28$ 9.02$ 9.66$ 10.14$ 10.44$ 10.76$ 11.08$ 11.41$ Scenario 2 - Proposed Rates Proposed Rates Water - Commercial Current 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 Quarterly bill based on 14,000 gallons 84.60$ 97.19$ 109.82$ 121.91$ 132.88$ 142.18$ 149.29$ 153.77$ 158.38$ 163.13$ 168.02$ Quarterly $ increase for a 14,000 gallon user 12.59 12.63 12.08 10.97 9.30 7.11 4.48 4.61 4.75 4.89 Annual $ increase for an average 14,000 gallon user 50.36 50.54 48.32 43.89 37.21 28.44 17.91 18.45 19.01 19.58 Base Fee 4.80$ 11.54$ 13.04$ 14.47$ 15.78$ 16.88$ 17.73$ 18.26$ 18.81$ 19.37$ 19.95$ Meter Fee -$ 5.85$ 6.61$ 7.34$ 8.00$ 8.56$ 8.99$ 9.26$ 9.53$ 9.82$ 10.11$ Consumption Fee - Per 1,000 gallons 0 30,000 5.70$ 5.70$ 6.44$ 7.15$ 7.79$ 8.34$ 8.76$ 9.02$ 9.29$ 9.57$ 9.85$ 30,001 60,000 6.30$ 6.30$ 7.12$ 7.90$ 8.61$ 9.22$ 9.68$ 9.97$ 10.27$ 10.57$ 10.89$ 60,001 999,999,999 6.60$ 6.60$ 7.46$ 8.28$ 9.02$ 9.66$ 10.14$ 10.44$ 10.76$ 11.08$ 11.41$ 8 City of Crystal, Minnesota Water and Sanitary Sewer Rate Study October 11, 2018 III. Water Rate Study (Continued) Water Utility Operating Fund (Continued) The table below summarizes comparable communities’ quarterly Residential bill if average usage is 9,000 gallons. Currently, Crystal has Water rates in the middle of the comparable communities, increasing the Water rates as proposed in Scenario 2 will allow Crystal’s Water rates to remain within comparable range. City Quarterly Bill ($) Brooklyn Park 23.80$ Brooklyn Center 36.60 Crystal 51.30 Golden Valley 56.70 Crystal (Scenario 2)68.69 New Hope 77.52 Average quarterly bill (w/o Crystal)48.66$ WATER 9 City of Crystal, Minnesota Water and Sanitary Sewer Rate Study October 11, 2018 III. Water Rate Study (Continued) Water Utility Operating Fund (Continued) Scenario 1 - Current Rates Inflated at 3% Annually Scenario 2 - Proposed Rates $- $500,000 $1,000,000 $1,500,000 $2,000,000 $2,500,000 $3,000,000 $3,500,000 $4,000,000 $4,500,000 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 Revenue from 3% Rate Increase Compared with Operating Expense Operating expenses Revenue from operations $- $1,000,000 $2,000,000 $3,000,000 $4,000,000 $5,000,000 $6,000,000 $7,000,000 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 Revenue from Scenario 2 Rates Compared with Operating Expense Operating expenses Revenue from operations 10 City of Crystal, Minnesota Water and Sanitary Sewer Rate Study October 11, 2018 III. Water Rate Study (Continued) Water Utility Operating Fund (Continued) Scenario 1 - Current Rates Inflated at 3% Annually Scenario 2 - Proposed Rates $(8,000,000) $(6,000,000) $(4,000,000) $(2,000,000) $- $2,000,000 $4,000,000 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 Projected Ending Cash Balance (Current Rates) Compared to Targeted Cash Reserve Cash Balance Assuming Recommended Increases Target Cash Reserve Target Cash Reserve is the amount needed to fund operations and capital projects. $- $1,000,000 $2,000,000 $3,000,000 $4,000,000 $5,000,000 $6,000,000 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 Projected Ending Cash Balance (Scenario 2) Compared to Targeted Cash Reserve Cash Balance Assuming Recommended Increases Target Cash Reserve Target Cash Reserve is the amount needed to fund operations and capital projects. 11 City of Crystal, Minnesota Water and Sanitary Sewer Rate Study October 11, 2018 III. Water Rate Study (Continued) Water Utility Operating Fund (Continued) As evidenced by the graphs above, the City’s Water rates are not sufficient to sustain the existing cash balance. Revenues do not cover operating expenses and planned capital. With gradual increases in rates along with inflationary increases as shown in Scenario 2, revenues will increase over the years and achieve sufficient cash reserves over the life of the projection. 12 City of Crystal, Minnesota Water and Sanitary Sewer Rate Study October 11, 2018 III. Sanitary Sewer Rate Study (Continued) Sanitary Sewer Utility Operating Fund Goal • The Sanitary Sewer Operating fund will maintain a sufficient working capital balance. Targeted cash balance for the fund refers to the following years’ debt service obligations well as 50 percent of estimated operating costs. Rates A summary of the current rates and proposed rates are listed below. The Metropolitan Council Environmental Services (MCES) charges the City annually for sewer service and treatment. The annual MCES charge is based on the City’s portion of measured wastewater volume from the prior year and therefore varies annually. Currently, the City’s Sanitary Sewer fee is a flat fee structure, the proposed rates are based on a volumetric rate structure with wastewater volume estimated to be the average water consumption over the winter months. Converting to a volume based fee structure as well as annual inflationary increases will result in cash flows that will achieve the annual targets in Scenario 2. Scenario 2 - Proposed Rates Proposed Rates Sanitary Sewer - Residential Current 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 Quarterly bill based on 9,000 gallons 61.22$ 47.33$ 53.01$ 58.31$ 62.97$ 66.75$ 69.42$ 71.50$ 73.65$ 75.86$ 78.13$ Quarterly $ increase (decrease) for a 9,000 gallon user (13.89) 5.68 5.30 4.66 3.78 2.67 2.08 2.15 2.21 2.28 Annual $ increase (decrease) for an average 9,000 gallon user (55.58) 22.72 21.20 18.66 15.11 10.68 8.33 8.58 8.84 9.10 Base Fee 61.22$ 10.06$ 11.26$ 12.39$ 13.38$ 14.19$ 14.75$ 15.20$ 15.65$ 16.12$ 16.60$ Meter Fee -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ Consumption Fee - Per 1,000 gallons 0 30,000 -$ 4.14$ 4.64$ 5.10$ 5.51$ 5.84$ 6.07$ 6.26$ 6.44$ 6.64$ 6.84$ 30,001 60,000 -$ 5.07$ 5.68$ 6.25$ 6.75$ 7.15$ 7.44$ 7.66$ 7.89$ 8.13$ 8.37$ 60,001 999,999,999 -$ 6.00$ 6.72$ 7.40$ 7.99$ 8.47$ 8.80$ 9.07$ 9.34$ 9.62$ 9.91$ Scenario 2 - Proposed Rates Proposed Rates Sanitary Sewer - Commercial Current 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 Quarterly bill based on 2,000 gallons 66.56$ 24.05$ 26.94$ 29.63$ 32.00$ 33.93$ 35.28$ 36.34$ 37.43$ 38.55$ 39.71$ Quarterly $ increase for a 2,000 gallon user (42.51) 2.89 2.69 2.37 1.92 1.36 1.06 1.09 1.12 1.16 Annual $ increase for an average 2,000 gallon user (170.03) 11.55 10.78 9.48 7.68 5.43 4.23 4.36 4.49 4.63 Base Fee 61.22$ 10.06$ 11.26$ 12.39$ 13.38$ 14.19$ 14.75$ 15.20$ 15.65$ 16.12$ 16.60$ Meter Fee -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ Consumption Fee - Per 1,000 gallons 0 30,000 2.67$ 7.00$ 7.84$ 8.62$ 9.31$ 9.87$ 10.26$ 10.57$ 10.89$ 11.22$ 11.55$ 30,001 60,000 2.67$ 7.93$ 8.88$ 9.77$ 10.55$ 11.18$ 11.63$ 11.98$ 12.34$ 12.71$ 13.09$ 60,001 999,999,999 2.67$ 8.86$ 9.92$ 10.92$ 11.79$ 12.50$ 13.00$ 13.39$ 13.79$ 14.20$ 14.63$ 13 City of Crystal, Minnesota Water and Sanitary Sewer Rate Study October 11, 2018 III. Sanitary Sewer Rate Study (Continued) Sanitary Sewer Utility Operating Fund (Continued) The table below summarizes comparable communities quarterly Residential bill if average Sanitary Sewer is billed based on water consumption and at an average rate of 9,000 gallons per quarter. Currently, Crystal has Sanitary Sewer rates in the middle of the comparable communities, increase the Sanitary Sewer rates as proposed in Scenario 2 will allow Crystal ’s Water rates to meet the target cash reserves over the life of the projection and remain within comparable range. City Quarterly Bill ($) Brooklyn Park 36.45$ Crystal (Scenario 2)47.33 New Hope 55.02 Crystal 61.22 Golden Valley 73.15 Brooklyn Center 82.42 Average quarterly bill (w/o Crystal)61.76$ SANITARY SEWER $36.45 47.33 55.02 61.22 73.15 82.42 $0.00 $10.00 $20.00 $30.00 $40.00 $50.00 $60.00 $70.00 $80.00 $90.00 Brooklyn Park Crystal (Scenario 2) New Hope Crystal Golden Valley Brooklyn Center COMPARISON OF QUARTERLY SANITARY SEWER BILLINGS (Assumes average usage of 9,000 gallons)14 City of Crystal, Minnesota Water and Sanitary Sewer Rate Study October 11, 2018 III. Sanitary Sewer Rate Study (Continued) Sanitary Sewer Utility Operating Fund (Continued) Scenario 1 - Current Rates Inflated at 3% Annually Scenario 2 - Proposed Rates $- $500,000 $1,000,000 $1,500,000 $2,000,000 $2,500,000 $3,000,000 $3,500,000 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 Revenue from 3% Rate Increase Compared with Operating Expense Operating expenses Revenue from operations $- $500,000 $1,000,000 $1,500,000 $2,000,000 $2,500,000 $3,000,000 $3,500,000 $4,000,000 $4,500,000 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 Revenue from Scenario 2 Compared with Operating Expense Operating expenses Revenue from operations 15 City of Crystal, Minnesota Water and Sanitary Sewer Rate Study October 11, 2018 III. Sanitary Sewer Rate Study (Continued) Sanitary Sewer Utility Operating Fund (Continued) Current Rates Inflated at 3% Annually Scenario 2 - Proposed Rates $(3,000,000) $(2,000,000) $(1,000,000) $- $1,000,000 $2,000,000 $3,000,000 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 Projected Ending Cash Balance (Current Rates) Compared to Targeted Cash Reserve Cash Balance Assuming Recommended Increases Target Cash Reserve Target Cash Reserve is the amount needed to fund operations and capital projects. $- $500,000 $1,000,000 $1,500,000 $2,000,000 $2,500,000 $3,000,000 $3,500,000 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 Projected Ending Cash Balance (Scenario 2) Compared to Targeted Cash Reserve Cash Balance Assuming Recommended Increases Target Cash Reserve Target Cash Reserve is the amount needed to fund operations and capital projects. 16 City of Crystal, Minnesota Water and Sanitary Sewer Rate Study October 11, 2018 III. Sanitary Sewer Rate Study (Continued) Sanitary Sewer Utility Operating Fund (Continued) As evidenced by the graphs above, the City’s Sanitary Sewer rates are insufficient to sustain the existing cash balance. Revenues do not cover operating expenses and planned capital. With gradual increases in rates along with inflationary increases as shown in Scenario 2, revenues will increase over the years and achieve sufficient cash reserves over the life of the projection. 17 City of Crystal, Minnesota Water and Sanitary Sewer Rate Study October 11, 2018 Summary Water and Sanitary Sewer Rate Study As evidenced in the discussions above, it appears the City’s utility rates are competitive with similar communities. An increase in rates will help the Water and Sanitary Sewer utilities achieve sufficient cash flows to meet the targets. The charts below present the total quarterly Water and Sanitary Sewer bill for an average Residential customer under Scenario 1 with inflationary increases and the proposed Scenario 2 with varied increases. Scenario 1 - Current Rates Inflated at 3% Annually Scenario 2 - Proposed Rates 56.10 57.78 59.52 61.30 63.14 65.04 66.99 69.00 71.07 73.20 75.39 61.22 63.06 64.95 66.90 68.90 70.97 73.10 75.29 77.55 79.88 82.27 $- $40 $80 $120 $160 $200 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 Projected Total Residential Monthly Utility Bill Under Current Rates (Average 9,000 gallons) Water Sanitary Sewer 56.10 68.69 77.62 86.16 93.91 100.49 105.51 108.68 111.94 115.29 118.75 61.22 47.33 53.01 58.31 62.97 66.75 69.42 71.50 73.65 75.86 78.13 $- $40 $80 $120 $160 $200 $240 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 Projected Total Residential Monthly Utility Bill Under Scenario 2 (Average 9,000 gallons) Water Sanitary Sewer 18 City of Crystal, Minnesota Water and Sanitary Sewer Rate Study October 11, 2018 Summary (Continued) Water and Sanitary Sewer Rate Study (Continued) The total quarterly Water and Sanitary Sewer bill for an average Residential customer under the proposed Scenario 2 in comparison to comparable communities is presented below. (Please note: The rates presented below are the current 2018 rates in comparison to the proposed 2019 rates for the City of Crystal in Scenario 2). 23.80 51.30 68.69 36.60 56.70 77.52 36.45 61.22 47.33 82.42 73.15 55.02 $0 $20 $40 $60 $80 $100 $120 $140 Brooklyn Park Crystal Crystal (Scenario 2) Brooklyn Center Golden Valley New Hope Comparison of Total Quarterly Residential Water and Sewer Bill Under Scenario 2 (Average 9,000 gallons) Water Sewer 19 City of Crystal, Minnesota Water and Sanitary Sewer Rate Study October 11, 2018 Summary (Continued) Storm Drainage Rates A summary of the current rates and proposed rate increases of one dollar per quarter as discussed by Council. Scenario 2 - Proposed Rates Proposed Rates Storm Drainage - Residential Current 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 Proposed annual increase on fixed rates 1.00$ 1.00$ 1.00$ 1.00$ 1.00$ 1.00$ 1.00$ 1.00$ 1.00$ 1.00$ 1.00$ Quarterly bill 18.15$ 19.15$ 20.15$ 21.15$ 22.15$ 23.15$ 24.15$ 25.15$ 26.15$ 27.15$ 28.15$ 20 SUPPLEMENTARY INFORMATION CITY OF CRYSTAL CRYSTAL, MINNESOTA 21 City of Crystal Minnesota Quarterly Bill Comparison (Presents billing details under past and current rates for comparison to future billing under the proposed rates.) Billing Detail Gallons 11/25/2016 - 2/25/2017 Gallons 2/25/2017 - 5/25/2017 Gallons 5/25/2017 - 8/25/2017 Gallons 8/25/2017 - 11/25/2017 Gallons 5/29/2018 - 8/25/2018 Proposed Rates Quarterly Bill Increase (Decrease) Emergency Well Surcharge 2.94 2.94 3.57 3.36 Emergency Well Surcharge 3.15$ 3.15$ State Testing Fee 1.59 1.59 1.59 1.59 State Testing Fee 1.59 1.59 Water - Consumption 14,000 77.00 14,000 77.00 17,000 93.50 16,000 88.00 Water - Consumption 15,000 85.50 85.50 Water - Meter/Service Charge 4.80 4.80 4.80 4.80 Water - Meter/Service Charge 4.80 5.85 Water - Base Fee - - - - Water - Base Fee - 11.54 Sewer 55.15 55.15 55.15 55.15 Sewer 14,000 *61.22 57.97 Sewer - Base Fee - - - - Sewer - Base Fee - 10.06 Storm Drainage 16.50 16.50 16.50 16.50 Storm Drainage 18.15 18.15 Recycling Charges 10.75 10.75 10.75 10.75 Recycling Charges 10.75 10.75 Street Lights 5.00 5.00 5.00 5.00 Street Lights 5.00 5.00 173.73 173.73 190.86 185.15 190.16$ 209.56$ 19.40$ Billing Detail Gallons 12/25/2016 - 3/25/2017 Gallons 3/25/2017 - 6/24/2017 Gallons 6/24/2017 - 9/25/2017 Gallons 9/25/2017 - 12/25/2017 Gallons 3/25/2018 - 6/25/2018 Proposed Rates Quarterly Bill Increase (Decrease) Emergency Well Surcharge 1.47 1.26 1.68 1.47 Emergency Well Surcharge 1.47$ 1.47$ State Testing Fee 1.59 1.59 1.59 1.59 State Testing Fee 1.59 1.59 Water - Consumption 7,000 38.50 6,000 33.00 8,000 44.00 7000 38.50 Water - Consumption 7,000 39.90 39.90 Water - Meter/Service Charge 4.80 4.80 4.80 4.80 Water - Meter/Service Charge 4.80 5.85 Water - Base Fee - - - - Water - Base Fee - 11.54 Sewer 55.15 55.15 55.15 55.15 Sewer 7,000 *61.22 28.99 Sewer - Base Fee - - - - Sewer - Base Fee - 10.06 Storm Drainage 16.50 16.50 16.50 16.50 Storm Drainage 18.15 18.15 Recycling Charges 10.75 10.75 10.75 10.75 Recycling Charges 10.75 10.75 Street Lights 5.00 5.00 5.00 5.00 Street Lights 5.00 5.00 133.76 128.05 139.47 133.76 142.88$ 133.29$ (9.59)$ Billing Detail Gallons 10/25/2016 - 1/25/2017 Gallons 1/25/2017 - 4/24/2017 Gallons 4/24/2017 - 7/25/2017 Gallons 7/25/2017 - 10/25/2017 Gallons 4/24/2018 - 7/25/2018 Proposed Rates Quarterly Bill Increase (Decrease) Emergency Well Surcharge 2.52 2.31 2.10 2.94 Emergency Well Surcharge 2.31$ 2.31$ State Testing Fee 1.59 1.59 1.59 1.59 State Testing Fee 1.59 1.59 Water - Consumption 12,000 66.00 11,000 60.50 10,000 55.00 14,000 77.00 Water - Consumption 11,000 62.70 62.70 Water - Meter/Service Charge 4.80 4.80 4.80 4.80 Water - Meter/Service Charge 4.80 5.85 Water - Base Fee - - - - Water - Base Fee - 11.54 Sewer 55.15 55.15 55.15 55.15 Sewer 11,000 *61.22 45.55 Sewer - Base Fee - - - - Sewer - Base Fee - 10.06 Storm Drainage 16.50 16.50 16.50 16.50 Storm Drainage 18.15 18.15 Recycling Charges 10.75 10.75 10.75 10.75 Recycling Charges 10.75 10.75 Street Lights 5.00 5.00 5.00 5.00 Street Lights 5.00 5.00 162.31 156.60 150.89 173.73 166.52$ 173.50$ 6.98$ COUNCIL MEMBERS Council Member 1 Council Member 2 2017 Rates 2018 Rates and Proposed Rates 2017 Rates 2018 Rates and Proposed Rates 2017 Rates 2018 Rates and Proposed Rates Council Member 3 22 City of Crystal Minnesota Quarterly Bill Comparison (Presents billing details under past and current rates for comparison to future billing under the proposed rates.) Billing Detail Gallons 11/25/2016 - 2/25/2017 Gallons 2/25/2017 - 5/25/2017 Gallons 5/25/2017 - 8/25/2017 Gallons 8/25/2017 - 11/25/2017 Gallons 5/29/2018 - 8/25/2018 Proposed Rates Quarterly Bill Increase (Decrease) Emergency Well Surcharge 3.15 3.15 9.24 3.57 Emergency Well Surcharge 4.83$ 4.83$ State Testing Fee 1.59 1.59 1.59 1.59 State Testing Fee 1.59 1.59 Water - Consumption 15,000 82.50 15,000 82.50 44,000 247.60 17,000 93.50 Water - Consumption 23,000 131.10 131.10 Water - Meter/Service Charge 4.80 4.80 4.80 4.80 Water - Meter/Service Charge 4.80 5.85 Water - Base Fee - - - - Water - Base Fee - 11.54 Sewer 55.15 55.15 55.15 55.15 Sewer 15,000 *61.22 62.11 Sewer - Base Fee - - - - Sewer - Base Fee - 10.06 Storm Drainage 16.50 16.50 16.50 16.50 Storm Drainage 18.15 18.15 Recycling Charges 10.75 10.75 10.75 10.75 Recycling Charges 10.75 10.75 Street Lights 5.00 5.00 5.00 5.00 Street Lights 5.00 5.00 179.44 179.44 350.63 190.86 237.44$ 260.98$ 23.54$ Billing Detail Gallons 10/25/2016 - 1/25/2017 Gallons 1/25/2017 - 4/24/2017 Gallons 4/24/2017 - 7/25/2017 Gallons 7/25/2017 - 10/25/2017 Gallons 5/29/2018 - 8/25/2018 Proposed Rates Quarterly Bill Increase (Decrease) Emergency Well Surcharge 5.67 4.62 6.72 4.83 Emergency Well Surcharge 3.99$ 3.99$ State Testing Fee 1.59 1.59 1.59 1.59 State Testing Fee 1.59 1.59 Water - Consumption 27,000 148.50 22,000 121.00 32,000 176.80 23,000 126.50 Water - Consumption 19,000 108.30 108.30 Water - Meter/Service Charge 4.80 4.80 4.80 4.80 Water - Meter/Service Charge 4.80 5.85 Water - Base Fee - - - - Water - Base Fee - 11.54 Sewer 55.15 55.15 55.15 55.15 Sewer 22,000 *61.22 91.10 Sewer - Base Fee - - - - Sewer - Base Fee - 10.06 Storm Drainage 16.50 16.50 16.50 16.50 Storm Drainage 18.15 18.15 Recycling Charges 10.75 10.75 10.75 10.75 Recycling Charges 10.75 10.75 Street Lights 5.00 5.00 5.00 5.00 Street Lights 5.00 5.00 247.96 219.41 277.31 225.12 213.80$ 266.33$ 52.53$ Billing Detail Gallons 11/25/2016 - 2/25/2017 Gallons 2/25/2017 - 5/25/2017 Gallons 5/25/2017 - 8/25/2017 Gallons 8/25/2017 - 11/25/2017 Gallons 5/29/2018 - 8/25/2018 Proposed Rates Quarterly Bill Increase (Decrease) Emergency Well Surcharge 0.84 1.89 1.68 1.68 Emergency Well Surcharge 1.89$ 1.89$ State Testing Fee 1.59 1.59 1.59 1.59 State Testing Fee 1.59 1.59 Water - Consumption 4,000 22.00 9,000 49.50 8,000 44.00 8,000 44.00 Water - Consumption 9,000 51.30 51.30 Water - Meter/Service Charge 4.80 4.80 4.80 4.80 Water - Meter/Service Charge 4.80 5.85 Water - Base Fee - - - - Water - Base Fee - 11.54 Sewer 55.15 55.15 55.15 55.15 Sewer 4,000 *61.22 16.56 Sewer - Base Fee - - - - Sewer - Base Fee - 10.06 Storm Drainage 16.50 16.50 16.50 16.50 Storm Drainage 18.15 18.15 Recycling Charges 10.75 10.75 10.75 10.75 Recycling Charges 10.75 10.75 Street Lights 5.00 5.00 5.00 5.00 Street Lights 5.00 5.00 116.63 145.18 139.47 139.47 154.70$ 132.69$ (22.01)$ * Sewer wastewater volume estimate for proposed rate calculation is based on winter water consumption. 2018 Rates and Proposed Rates 2017 Rates 2018 Rates and Proposed Rates 2017 Rates 2018 Rates and Proposed Rates Council Member 6 Council Member 4 Council Member 5 2017 Rates 23 City of Crystal Minnesota Quarterly Bill Comparison (Presents billing details under past and current rates for comparison to future billing under the proposed rates.) Billing Detail Gallons 11/25/2016 - 2/25/2017 Gallons 2/25/2017 - 5/25/2017 Gallons 5/25/2017 - 8/25/2017 Gallons 8/25/2017 - 11/25/2017 Gallons 5/29/2018 - 8/25/2018 Proposed Rates Quarterly Bill Increase (Decrease) Emergency Well Surcharge 0.21 0.42 0.21 0.21 Emergency Well Surcharge -$ -$ State Testing Fee 1.59 1.59 1.59 1.59 State Testing Fee 1.59 1.59 Water - Consumption 1,000 5.50 2,000 11.00 1,000 5.50 1,000 5.50 Water - Consumption - - - Water - Meter/Service Charge 4.80 4.80 4.80 4.80 Water - Meter/Service Charge 4.80 5.85 Water - Base Fee - - - - Water - Base Fee - 11.54 Sewer 44.67 44.67 44.67 44.67 Sewer 1,000 *49.59 4.14 Sewer - Base Fee - - - - Sewer - Base Fee - 10.06 Storm Drainage 16.50 16.50 16.50 16.50 Storm Drainage 18.15 18.15 Recycling Charges 10.75 10.75 10.75 10.75 Recycling Charges 10.75 10.75 Street Lights 5.00 5.00 5.00 5.00 Street Lights 5.00 5.00 89.02 94.73 89.02 89.02 89.88$ 67.08$ (22.80)$ Billing Detail Gallons 11/25/2016 - 2/25/2017 Gallons 2/25/2017 - 5/25/2017 Gallons 5/25/2017 - 8/25/2017 Gallons 8/25/2017 - 11/25/2017 Gallons 5/29/2018 - 8/25/2018 Proposed Rates Quarterly Bill Increase (Decrease) Emergency Well Surcharge 1.26 2.52 1.68 1.05 Emergency Well Surcharge 6.51$ 6.51$ State Testing Fee 1.59 1.59 1.59 1.59 State Testing Fee 1.59 1.59 Water - Consumption 6,000 33.00 12,000 66.00 8,000 44.00 5,000 27.50 Water - Consumption 31,000 177.30 177.30 Water - Meter/Service Charge 4.80 4.80 4.80 4.80 Water - Meter/Service Charge 4.80 5.85 Water - Base Fee - - - - Water - Base Fee - 11.54 Sewer 44.67 44.67 44.67 44.67 Sewer 6,000 *49.59 24.85 Sewer - Base Fee - - - - Sewer - Base Fee - 10.06 Storm Drainage 16.50 16.50 16.50 16.50 Storm Drainage 18.15 18.15 Recycling Charges 10.75 10.75 10.75 10.75 Recycling Charges 10.75 10.75 Street Lights 5.00 5.00 5.00 5.00 Street Lights 5.00 5.00 117.57 151.83 128.99 111.86 273.69$ 271.59$ (2.10)$ Senior Resident 1 Senior Resident 2 SENIOR RESIDENTS 2017 Rates 2018 Rates and Proposed Rates 2017 Rates 2018 Rates and Proposed Rates 24 City of Crystal Minnesota Quarterly Bill Comparison (Presents billing details under past and current rates for comparison to future billing under the proposed rates.) Billing Detail Gallons 11/25/2016 - 2/25/2017 Gallons 2/25/2017 - 5/25/2017 Gallons 5/25/2017 - 8/25/2017 Gallons 8/25/2017 - 11/25/2017 Gallons 5/29/2018 - 8/25/2018 Proposed Rates Quarterly Bill Increase (Decrease) Emergency Well Surcharge 1.05 1.05 1.05 0.84 Emergency Well Surcharge 2.94$ 2.94$ State Testing Fee 1.59 1.59 1.59 1.59 State Testing Fee 1.59 1.59 Water - Consumption 5,000 27.50 5,000 27.50 5,000 27.50 4,000 22.00 Water - Consumption 14,000 79.80 79.80 Water - Meter/Service Charge 4.80 4.80 4.80 4.80 Water - Meter/Service Charge 4.80 5.85 Water - Base Fee - - - - Water - Base Fee - 11.54 Sewer 44.67 44.67 44.67 44.67 Sewer 5,000 *49.59 20.70 Sewer - Base Fee - - - - Sewer - Base Fee - 10.06 Storm Drainage 16.50 16.50 16.50 16.50 Storm Drainage 18.15 18.15 Recycling Charges 10.75 10.75 10.75 10.75 Recycling Charges 10.75 10.75 Street Lights 5.00 5.00 5.00 5.00 Street Lights 5.00 5.00 111.86 111.86 111.86 106.15 172.62$ 166.38$ (6.24)$ Billing Detail Gallons 11/25/2016 - 2/25/2017 Gallons 2/25/2017 - 5/25/2017 Gallons 5/25/2017 - 8/25/2017 Gallons 8/25/2017 - 11/25/2017 Gallons 5/29/2018 - 8/25/2018 Proposed Rates Quarterly Bill Increase (Decrease) Emergency Well Surcharge 1.47 1.47 1.26 1.26 Emergency Well Surcharge 1.26$ 1.26$ State Testing Fee 1.59 1.59 1.59 1.59 State Testing Fee 1.59 1.59 Water - Consumption 7,000 38.50 7,000 38.50 6,000 33.00 6,000 33.00 Water - Consumption 6,000 34.20 34.20 Water - Meter/Service Charge 4.80 4.80 4.80 4.80 Water - Meter/Service Charge 4.80 5.85 Water - Base Fee - - - - Water - Base Fee - 11.54 Sewer 55.15 55.15 44.67 44.67 Sewer 7,000 *49.59 28.99 Sewer - Base Fee - - - - Sewer - Base Fee - 10.06 Storm Drainage 16.50 16.50 16.50 16.50 Storm Drainage 18.15 18.15 Recycling Charges 10.75 10.75 10.75 10.75 Recycling Charges 10.75 10.75 Street Lights 5.00 5.00 5.00 5.00 Street Lights 5.00 5.00 133.76 133.76 117.57 117.57 125.34$ 127.38$ 2.04$ * Sewer wastewater volume estimate for proposed rate calculation is based on winter water consumption. 2017 Rates 2018 Rates and Proposed Rates Senior Resident 3 Senior Resident 4 2017 Rates 2018 Rates and Proposed Rates 25 City of Crystal, Minnesota Water Fund Cash Flow Projections - Scenario 1 - Current State For the Years Ending December 31, 2016 through 2028 RATE STUDY PROJECTIONS Estimated Estimated Estimated Estimated Estimated Estimated Estimated Estimated Estimated Estimated Estimated 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 Cash Flows from Operating Activities Receipts from customers and users 3,397,744$ 3,398,864$ 3,387,468$ 3,374,512$ 3,475,747$ 3,580,020$ 3,687,420$ 3,798,043$ 3,911,984$ 4,029,344$ 4,150,224$ 4,274,731$ 4,402,973$ Payments to suppliers (2,513,712) (2,259,536) (2,788,377) (2,872,029) (2,958,190) (3,046,935) (3,138,343) (3,232,494) (3,329,468) (3,429,352) (3,532,233) (3,638,200) (3,747,346) Payments to employees (361,105) (375,394) (377,973) (396,872) (416,715) (437,551) (459,429) (482,400) (506,520) (531,846) (558,438) (586,360) (615,678) Net cash from operating activities 522,927 763,934 221,118 105,612 100,843 95,533 89,648 83,149 75,996 68,145 59,553 50,171 39,948 Cash Flows from Noncapital Financing Activities Transfers to other funds (139,278) (140,188) (181,604) (190,684) (200,218) (210,229) (220,741) (231,778) (243,367) (255,535) (268,312) (281,727) (295,814) Net cash from noncapital financing activities (139,278) (140,188) (181,604) (190,684) (200,218) (210,229) (220,741) (231,778) (243,367) (255,535) (268,312) (281,727) (295,814) Cash Flows from Capital and Related Financing Activities Change in assessments receivable (27,419) (4,030) - - - - - - - - - - - Grants and contributions 1,265 - - - - - - - - - - - - Acquisition of capital assets (284,093) (52,353) (50,000) (283,250) (648,900) (695,250) (618,000) (787,950) (644,780) (620,060) (742,836) (692,109) (618,000) Proceeds from disposal of capital assets 2,147 9,964 - - - - - - - - - - - Change in advance from other funds (60,000) (60,000) (60,000) (60,000) (60,000) (60,000) (60,000) (60,000) (60,000) (37,119) - - - Interest paid on advances (10,800) (9,600) (8,400) (7,368) (6,315) (5,242) (4,147) (3,029) (1,890) (728) - - - Net cash from capital and related financing activities (378,900) (116,019) (118,400) (350,618) (715,215) (760,492) (682,147) (850,979) (706,670) (657,907) (742,836) (692,109) (618,000) Cash Flows from Investing Activities Interest and dividends received 6,560 6,713 9,530 8,837 4,568 - - - - - - - - Net cash from investing activities 6,560 6,713 9,530 8,837 4,568 - - - - - - - - Net Increase (Decrease) in Cash and Cash Equivalents 11,309 514,440 (69,356) (426,854) (810,023) (875,188) (813,239) (999,607) (874,041) (845,297) (951,595) (923,665) (873,865) Cash and Cash Equivalents, January 1 427,290 438,599 953,039 883,683 456,829 (353,193) (1,228,381) (2,041,621) (3,041,228) (3,915,269) (4,760,566) (5,712,161) (6,635,826) Cash and Cash Equivalents, December 31 438,599$ 953,039$ 883,683$ 456,829$ (353,193)$ (1,228,381)$ (2,041,621)$ (3,041,228)$ (3,915,269)$ (4,760,566)$ (5,712,161)$ (6,635,826)$ (7,509,691)$ Target Cash Reserve 1,317,465$ 1,583,175$ 2,080,450$ 2,133,452$ 2,188,243$ 2,244,886$ 2,303,447$ 2,363,994$ 2,426,599$ 2,491,336$ 2,558,280$ 2,627,512$ Cash in Excess of Reserve -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ Average quarterly bill (9,000 gallons)54.30$ 56.10$ 57.78$ 59.52$ 61.30$ 63.14$ 65.04$ 66.99$ 69.00$ 71.07$ 73.20$ 75.39$ Average quarterly dollar increase 1.80$ 1.68$ 1.73$ 1.79$ 1.84$ 1.89$ 1.95$ 2.01$ 2.07$ 2.13$ 2.20$ Average annual dollar increase 7.20$ 6.73$ 6.93$ 7.14$ 7.36$ 7.58$ 7.80$ 8.04$ 8.28$ 8.53$ 8.78$ Five year average capital expenses 446,000$ 446,000$ 446,000$ 446,000$ 446,000$ 446,000$ 446,000$ 446,000$ 446,000$ 446,000$ 446,000$ Actual 26 City of Crystal, Minnesota Water Fund Cash Flow Projections - Scenario 2 - Increase Spread Over Several Periods to Achieve Target For the Years Ending December 31, 2016 Through 2028 RATE STUDY PROJECTIONS Estimated Estimated Estimated Estimated Estimated Estimated Estimated Estimated Estimated Estimated 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 Cash Flows from Operating Activities Receipts from customers and users 3,397,744$ 3,398,864$ 3,387,468$ 3,631,212$ 4,114,447$ 4,579,442$ 5,005,116$ 5,369,944$ 5,653,634$ 5,838,893$ 6,030,178$ 6,227,686$ Payments to suppliers (2,513,712) (2,259,536) (2,788,377) (2,872,029) (2,958,190) (3,046,935) (3,138,343) (3,232,494) (3,329,468) (3,429,352) (3,532,233) (3,638,200) Payments to employees (361,105) (375,394) (377,973) (396,872) (416,715) (437,551) (459,429) (482,400) (506,520) (531,846) (558,438) (586,360) Net cash from operating activities 522,927 763,934 221,118 362,311 739,542 1,094,956 1,407,344 1,655,050 1,817,646 1,877,694 1,939,507 2,003,126 Cash Flows from Noncapital Financing Activities Transfers to other funds (139,278) (140,188) (181,604) (190,684) (200,218) (210,229) (220,741) (231,778) (243,367) (255,535) (268,312) (281,727) Net cash from noncapital financing activities (139,278) (140,188) (181,604) (190,684) (200,218) (210,229) (220,741) (231,778) (243,367) (255,535) (268,312) (281,727) Cash Flows from Capital and Related Financing Activities Change in assessments receivable (27,419) (4,030) - - - - - - - - - - Grants and contributions 1,265 - - - - - - - - - - - Acquisition of capital assets (284,093) (52,353) (50,000) (283,250) (648,900) (695,250) (618,000) (787,950) (644,780) (620,060) (742,836) (692,109) Proceeds from sale of capital assets 2,147 9,964 - - - - - - - - - - Change in advance from other funds (60,000) (60,000) (60,000) (60,000) (60,000) (60,000) (60,000) (60,000) (60,000) (60,000) (37,119) - Interest paid on advances (10,800) (9,600) (8,400) (7,368) (6,315) (5,242) (4,147) (3,029) (1,890) (728) - - Net cash from capital and related financing activities (378,900) (116,019) (118,400) (350,618) (715,215) (760,492) (682,147) (850,979) (706,670) (680,788) (779,955) (692,109) Cash Flows from Investing Activities Interest and dividends received 6,560 6,713 9,530 8,837 7,135 5,448 6,745 11,857 17,698 26,551 36,230 45,505 Net cash from investing activities 6,560 6,713 9,530 8,837 7,135 5,448 6,745 11,857 17,698 26,551 36,230 45,505 Net Increase (Decrease) in Cash and Cash Equivalents 11,309 514,440 (69,356) (170,154) (168,756) 129,683 511,200 584,150 885,307 967,922 927,470 1,074,795 Cash and Cash Equivalents, January 1 427,290 438,599 953,039 883,683 713,529 544,773 674,455 1,185,656 1,769,805 2,655,113 3,623,035 4,550,505 Cash and Cash Equivalents, December 31 438,599$ 953,039$ 883,683$ 713,529$ 544,773$ 674,455$ 1,185,656$ 1,769,805$ 2,655,113$ 3,623,035$ 4,550,505$ 5,625,300$ Target Cash Reserve 1,317,465$ 1,583,175$ 2,080,450$ 2,133,452$ 2,188,243$ 2,244,886$ 2,303,447$ 2,363,994$ 2,426,599$ 2,491,336$ 2,558,280$ 2,627,512$ Cash in Excess of Reserve -$ -$ -$ -$ -$ -$ -$ -$ 228,513$ 1,131,699$ 1,992,225$ 2,997,788$ Average quarterly bill (9,000 gallons)54.30$ 56.10$ 68.69$ 77.62$ 86.16$ 93.91$ 100.49$ 105.51$ 108.68$ 111.94$ 115.29$ Average quarterly dollar increase 1.80$ 12.59$ 8.93$ 8.54$ 7.75$ 6.57$ 5.02$ 3.17$ 3.26$ 3.36$ Average annual dollar increase 7.20$ 50.36$ 35.72$ 34.15$ 31.02$ 26.30$ 20.10$ 12.66$ 13.04$ 13.43$ Actual 27 City of Crystal, Minnesota Sanitary Sewer Fund Cash Flow Projections - Scenario 1 - Current State For the Years Ending December 31, 2016 through 2028 Estimated Estimated Estimated Estimated Estimated Estimated Estimated Estimated Estimated Estimated Estimated 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 Cash Flows from Operating Activities Receipts from customers and users 2,182,590$ 2,295,048$ 2,431,000$ 2,503,930$ 2,579,047$ 2,656,419$ 2,736,111$ 2,818,195$ 2,902,741$ 2,989,823$ 3,079,517$ 3,171,903$ 3,267,060$ Payments to suppliers (1,658,085) (1,558,509) (1,703,988) (1,742,193) (1,794,459) (1,848,293) (1,903,742) (1,960,854) (2,019,680) (2,080,270) (2,142,678) (2,206,958) (2,273,167) Payments to employees (361,106) (373,108) (376,509) (395,334) (415,101) (435,856) (457,649) (480,531) (504,558) (529,786) (556,275) (584,089) (613,293) Net cash from operating activities 163,399 363,431 350,503 366,402 369,487 372,270 374,721 376,809 378,503 379,767 380,564 380,856 380,600 Cash Flows from Noncapital Financing Activities Transfers to other funds (139,278) (140,188) (181,604) (190,684) (200,218) (210,229) (220,741) (231,778) (243,367) (255,535) (268,312) (281,727) (295,814) Net cash from noncapital financing activities (139,278) (140,188) (181,604) (190,684) (200,218) (210,229) (220,741) (231,778) (243,367) (255,535) (268,312) (281,727) (295,814) Cash Flows from Capital and Related Financing Activities Grants and contributions 52,037 50,000 - - - - - - - - - - Acquisition of capital assets (574,296) (470,343) (395,000) (618,000) (710,700) (618,000) (865,200) (679,800) (644,780) (620,060) (742,836) (692,109) (636,025) Proceeds from sale of capital assets 2,147 - - - - - - - - - - - - Change in advance due to other funds 30,000 30,000 30,000 30,000 30,000 30,000 30,000 30,000 30,000 18,560 - - - Net cash from capital and related financing activities (490,112) (440,343) (315,000) (588,000) (680,700) (588,000) (835,200) (649,800) (614,780) (601,501) (742,836) (692,109) (636,025) Cash Flows from Investing Activities Interest and dividends received 29,660 25,733 25,411 23,688 19,275 13,817 9,148 1,869 945 364 - - - Net cash from investing activities 29,660 25,733 25,411 23,688 19,275 13,817 9,148 1,869 945 364 - - - Net Increase (Decrease) in Cash and Cash Equivalents (436,331) (191,367) (120,691) (388,594) (492,156) (412,142) (672,072) (502,900) (478,699) (476,905) (630,583) (592,980) (551,239) Cash and Cash Equivalents, January 1 2,748,774 2,312,443 2,121,076 2,000,385 1,611,791 1,119,635 707,493 35,421 (467,478) (946,177) (1,423,081) (2,053,665) (2,646,645) Cash and Cash Equivalents, December 31 2,312,443$ 2,121,076$ 2,000,385$ 1,611,791$ 1,119,635$ 707,493$ 35,421$ (467,478)$ (946,177)$ (1,423,081)$ (2,053,665)$ (2,646,645)$ (3,197,884)$ Target Cash Reserve 965,809$ 1,040,248$ 1,693,764$ 1,729,780$ 1,767,074$ 1,805,695$ 1,845,693$ 1,887,119$ 1,930,028$ 1,974,477$ 2,020,524$ 2,068,230$ Cash in Excess of Reserve 1,346,635$ 1,080,828$ 306,622$ -$ -$ -$ -$ -$ -$ -$ -$ -$ Average quarterly bill (9,000 gallons)55.15$ 61.22$ 63.06$ 64.95$ 66.90$ 68.90$ 70.97$ 73.10$ 75.29$ 77.55$ 79.88$ 82.27$ Average quarterly dollar increase 6.07$ 1.84$ 1.89$ 1.95$ 2.01$ 2.07$ 2.13$ 2.19$ 2.26$ 2.33$ 2.40$ Average annual dollar increase 24.28$ 7.35$ 7.57$ 7.79$ 8.03$ 8.27$ 8.52$ 8.77$ 9.04$ 9.31$ 9.59$ Five year average capital expenses 625,000$ 625,000$ 625,000$ 625,000$ 625,000$ 625,000$ 625,000$ 625,000$ 625,000$ 625,000$ 625,000$ Actual 28 City of Crystal, Minnesota Sanitary Sewer Fund Cash Flow Projections - Scenario 2 - Increase Spread Over Several Periods to Achieve Target For the Years Ending December 31, 2016 Through 2028 Estimated Estimated Estimated Estimated Estimated Estimated Estimated Estimated Estimated Estimated 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 Cash Flows from Operating Activities Receipts from customers and users 2,182,590$ 2,295,048$ 2,431,000$ 2,497,838$ 2,805,211$ 3,094,129$ 3,350,727$ 3,561,382$ 3,713,834$ 3,835,545$ 3,961,216$ 4,090,976$ Payments to suppliers (1,658,085) (1,558,509) (1,703,988) (1,742,193) (1,794,459) (1,848,293) (1,903,742) (1,960,854) (2,019,680) (2,080,270) (2,142,678) (2,206,958) Payments to employees (361,106) (373,108) (376,509) (395,334) (415,101) (435,856) (457,649) (480,531) (504,558) (529,786) (556,275) (584,089) Net cash from operating activities 163,399 363,431 350,503 360,310 595,651 809,980 989,336 1,119,997 1,189,596 1,225,489 1,262,263 1,299,928 Cash Flows from Noncapital Financing Activities Transfers to other funds (139,278) (140,188) (181,604) (190,684) (200,218) (210,229) (220,741) (231,778) (243,367) (255,535) (268,312) (281,727) Net cash from noncapital financing activities (139,278) (140,188) (181,604) (190,684) (200,218) (210,229) (220,741) (231,778) (243,367) (255,535) (268,312) (281,727) Cash Flows from Capital and Related Financing Activities Grants and contributions 52,037 - 50,000 - - - - - - - - - Acquisition of capital assets (574,296) (470,343) (395,000) (618,000) (710,700) (618,000) (865,200) (679,800) (644,780) (620,060) (742,836) (692,109) Proceeds from sale of capital assets 2,147 - - - - - - - - - - - Change in advance due to other funds 30,000 30,000 30,000 30,000 30,000 30,000 30,000 30,000 30,000 18,560 - - Net cash from capital and related financing activities (490,112) (440,343) (315,000) (588,000) (680,700) (588,000) (835,200) (649,800) (614,780) (601,501) (742,836) (692,109) Cash Flows from Investing Activities Interest and dividends received 29,660 25,733 25,411 23,688 19,214 16,017 15,748 14,680 16,642 19,541 23,057 25,799 Net cash from investing activities 29,660 25,733 25,411 23,688 19,214 16,017 15,748 14,680 16,642 19,541 23,057 25,799 Net Increase (Decrease) in Cash and Cash Equivalents (436,331) (191,367) (120,691) (394,686) (266,053) 27,768 (50,857) 253,099 348,091 387,995 274,172 351,892 Cash and Cash Equivalents, January 1 2,748,774 2,312,443 2,121,076 2,000,385 1,605,700 1,339,647 1,367,415 1,316,558 1,569,656 1,917,747 2,305,742 2,579,915 Cash and Cash Equivalents, December 31 2,312,443$ 2,121,076$ 2,000,385$ 1,605,700$ 1,339,647$ 1,367,415$ 1,316,558$ 1,569,656$ 1,917,747$ 2,305,742$ 2,579,915$ 2,931,806$ Target Cash Reserve 965,809$ 1,040,248$ 1,693,764$ 1,729,780$ 1,767,074$ 1,805,695$ 1,845,693$ 1,887,119$ 1,930,028$ 1,974,477$ 2,020,524$ 2,068,230$ Cash in Excess of Reserve 1,346,635$ 1,080,828$ 306,622$ -$ -$ -$ -$ -$ -$ 331,266$ 559,391$ 863,576$ Average quarterly bill (9,000 gallons)55.15$ 61.22$ 47.33$ 53.01$ 58.31$ 62.97$ 66.75$ 69.42$ 71.50$ 73.65$ 75.86$ Average quarterly dollar increase 6.07$ (13.89)$ 5.68$ 5.30$ 4.66$ 3.78$ 2.67$ 2.08$ 2.15$ 2.21$ Average annual dollar increase 24.28$ (55.58)$ 22.72$ 21.20$ 18.66$ 15.11$ 10.68$ 8.33$ 8.58$ 8.84$ Actual 29 Estimated Estimated Estimated Estimated Estimated Estimated 2018 2019 2020 2021 2022 2023 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) (1,580,000) 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) (330,000) 7,879 13,850 5,922 11,983 10,930 12,207 597,056 (792,720) 606,070 (105,362) 127,717 434,834 787,914 1,384,970 592,250 1,198,320 1,092,958 1,220,675 1,384,970$ 592,250$ 1,198,320$ 1,092,958$ 1,220,675$ 1,655,509$ $ 1,532,141.99 $ 1,556,249.09 $ 1,581,561.55 $ 1,608,139.62 $ 1,636,046.61 $ - $ - $ - $ - $ - 18.15$ 19.15$ 20.15$ 21.15$ 22.15$ 23.15$ 1.00$ 1.00$ 1.00$ 1.00$ 1.00$ Cash Flows from Investing Activities Investment earnings Net Increase (Decrease) in Cash and Cash Equivalents Cash and Cash Equivalents, January 1 Cash and Cash Equivalents, December 31 Target Cash Reserve Cash in Excess of Reserve Quarterly bill Annual dollar increase Five year average capital expenses 1,050,000$ 1,050,000$ 1,050,000$ 1,050,000$ 1,050,000$ 1,050,000$ Storm Drainage Fund Cash Flow Projections - Based on City Council Discussions During 2018 Budget Process For the Years Ending December 31, 2018 Through 2023 City of Crystal, Minnesota 30 City of CrystalEffective January 1, 2019Adopted by the City Council on November ____, 2018; Resolutions 2018-__ and 2018-___2019 - 2020 Proposed Fee SchedulesAppendix IV, Exhibit 1 of the Crystal City Code Department Type City Code Accounting CodeDescriptionExpires 2018 Fee 2019 FeePercent Increase2020 FeePercent Increase CommentsAdministration License 1190 0100.4110 Adult uses12/31 8,000.00$ 8,000.00$ 0.00% 8,000.00$ 0.00%pro-rated $666.67/mo.Administration License 1190 0100.4605 Adult uses - investigation fee (in state all of last 10 years) N/A 500.00$ 500.00$ 0.00% 500.00$ 0.00%Administration License 1190 0100.4605 Adult uses - investigation fee (out of state any of last 10 years) N/A 1,000.00$ 1,000.00$ 0.00% 1,000.00$ 0.00%Administration License 910 0100.4145 Multiple Animal kennel - commercial (new) 4/30 150.00$ 150.00$ 0.00% 150.00$ 0.00%Administration License 910 0100.4145 Multiple Animal kennel - commercial (renewal) 4/30 130.00$ 130.00$ 0.00% 130.00$ 0.00%Administration License 910 0100.4145 Multiple Animal kennel - private (new) 4/30 100.00$ 100.00$ 0.00% 100.00$ 0.00%Administration License 910 0100.4145 Multiple Animal kennel - private (renewal) 4/30 80.00$ 80.00$ 0.00% 80.00$ 0.00%Administration License11200100.4157Bulk oil12/31103.00$ -100.00%#DIV/0!each location; pro-rated $8.58/mo.Administration License8050100.4105Courtesy bench12/3145.00$ -100.00%#DIV/0!per bench, plus insuranceAdministration License 1131 0100.4105 Fireworks (retail store sales of consumer fireworks) 12/31 100.00$ 100.00$ 0.00% 100.00$ 0.00%determined by type of business per statuteAdministration License 1131 0100.4105 Fireworks (retail stand sales of consumer fireworks) 12/31 350.00$ 350.00$ 0.00% 350.00$ 0.00%determined by type of business per statuteAdministration License 1185 0100.4605 Lawful gambling - investigation fee N/A 250.00$ 250.00$ 0.00% 250.00$ 0.00%per premise (per statute)Administration License11200100.4157Gas station12/3180.00$ -100.00%#DIV/0!pro-rated $6.67/mo.Administration License11200100.4157Gas station (each hose connection)12/3116.00$ -100.00%#DIV/0!pro-rated $1.33/mo.Administration License11200100.4157Gasoline storage (each location)12/31115.00$ -100.00%#DIV/0!prorated $9.58/mo.Administration License 1200 0100.4140 Liquor -club on-sale (up to 200 members) 6/30 300.00$ 300.00$ 0.00% 300.00$ 0.00%plus insurance and investigation fee (per statute); pro-rated $25/mo.Administration License 1200 0100.4140 Liquor -club on-sale (201-500 members) 6/30 500.00$ 500.00$ 0.00% 500.00$ 0.00%plus insurance and investigation fee (per statute); pro-rated $41.67/mo.Administration License 1200 0100.4140Liquor - club on-sale (501-1,000 members)6/30 650.00$ 650.00$ 0.00% 650.00$ 0.00%plus insurance and investigation fee (per statute); pro-rated $54.17/mo.Administration License 1200 0100.4140 Liquor - club on-sale wine (up to 200 members) 6/30 150.00$ 150.00$ 0.00% 150.00$ 0.00%plus insurance and investigation fee (per statute); pro-rated $12.50/mo.Administration License 1200 0100.4140 Liquor - club on-sale wine and 3.2% malt liquor (up to 200 members) 6/30 216.00$ 216.00$ 0.00% 216.00$ 0.00%plus insurance and investigation fee (per statute); pro-rated $18/mo.Administration License 1200 0100.4140 Liquor - club on-sale wine (over 200 members) 6/30 250.00$ 250.00$ 0.00% 250.00$ 0.00%plus insurance and investigation fee (per statute); pro-rated $20.83/mo.Administration License 1200 0100.4140 Liquor - club on-sale wine and 3.2 malt liquor (over 200 members) 6/30 316.00$ 316.00$ 0.00% 316.00$ 0.00%plus insurance and investigation fee (per statute); pro-rated $26.33/mo.Administration License 1215 0100.4115 Liquor - club on-sale 3.2 malt liquor 6/30 66.00$ 66.00$ 0.00% 66.00$ 0.00%plus insurance and investigation fee (per statute); pro-rated $5.50/mo.Administration License 1205 0100.4140 Liquor - bottle club3/31 300.00$ 300.00$ 0.00% 300.00$ 0.00%plus insurance and investigation fee (per statute); pro-rated $25/mo. (min. $150)Administration License 1200 0100.4140 Liquor - extension to outdoor smoking area 6/30 75.00$ 75.00$ 0.00% 75.00$ 0.00%not pro-ratedAdministration License 1200 0100.4605 Liquor - investigation fee (club, 3.2% malt liquor) N/A 100.00$ 100.00$ 0.00% 100.00$ 0.00%$50 for additional applicantsAdministration License 1200 0100.4605 Liquor - investigation fee (off-sale liquor 3.2% malt liquor) N/A 100.00$ 100.00$ 0.00% 100.00$ 0.00%$50 for additional applicantsAdministration License 1200 0100.4605 Liquor - investigation fee (off-sale and on-sale - in state all of last 10 years) N/A 500.00$ 500.00$ 0.00% 500.00$ 0.00%per statute 340A.412Administration License 1200 0100.4605 Liquor - investigation fee (off-sale and on-sale - out of state, any of last 10 years) N/A 1,000.00$ 1,000.00$ 0.00% 1,000.00$ 0.00%per statute 340A.412Administration License 1215 0100.4165 Liquor - off-sale 3.2% malt liquor 6/30 100.00$ 100.00$ 0.00% 100.00$ 0.00%plus insurance and investigation fee (per statute)Administration License 1200 0100.4165 Liquor - off-sale brewer (small) 6/30 380.00$ 380.00$ 0.00% 380.00$ 0.00%plus insurance and investigation fee (per statute)Administration License 1200 0100.4165 Liquor - off-sale brewpub 6/30380.00$ 380.00$ 0.00% 380.00$ 0.00%plus insurance and investigation fee (per statute)Administration License 1200 0100.4165 Liquor - off-sale liquor6/30 380.00$ 380.00$ 0.00% 380.00$ 0.00%plus insurance and investigation fee (per statute)Administration License 1200 0100.4165 Liquor - off-sale microdistillery 6/30 380.00$ 380.00$ 0.00% 380.00$ 0.00%plus insurance and investigation fee (per statute)Administration License 1200 0100.4167 Liquor - on-sale liquor6/30 6,500.00$ 6,500.00$ 0.00% 6,500.00$ 0.00%plus insurance and investigation fee (per statute); pro-rated $541.67/mo for six monthsAdministration License 1215 0100.4167 Liquor - on-sale 3.2% malt liquor (special stands) per day 50.00$ 50.00$ 0.00% 50.00$ 0.00%plus insuranceAdministration License 1200 0100.4167 Liquor - on-sale brewer taproom 6/30 600.00$ 600.00$ 0.00% 600.00$ 0.00%plus insurance and investigation fee (per statute)Administration License 1200 0100.4167 Liquor - on-sale microdistillery 6/30 600.00$ 600.00$ 0.00% 600.00$ 0.00%plus insurance and investigation fee (per statute)Administration License 1200 0100.4140 Liquor - on-sale Sunday 6/30 200.00$ 200.00$ 0.00% 200.00$ 0.00%plus insurance and investigation fee (per statute)Administration License 1215 0100.4115 Liquor - on-sale tavern/3.2% malt liquor 6/30 550.00$ 550.00$ 0.00% 550.00$ 0.00%plus insurance and investigation fee (per statute); pro-rated $45.83/mo.Administration License 1200 0100.4115 Liquor - on-sale wine6/30 2,000.00$ 2,000.00$ 0.00% 2,000.00$ 0.00%plus insurance and investigation fee (per statute); pro-rated $166.67/mo.Administration License 1200 0100.4115 Liquor - on-sale wine and tavern/3.2%malt liquor 6/30 2,550.00$ 2,550.00$ 0.00% 2,550.00$ 0.00%plus insurance and investigation fee (per statute); pro-rated $212.50/mo.Administration License 1200 0100.4167 Liquor - on-sale temporary (1-4 days) per event 50.00$ 50.00$ 0.00% 50.00$ 0.00%Administration License 1200 0100.4115 Liquor - on-sale temporary (city facility or parks) per day 50.00$ 50.00$ 0.00% 50.00$ 0.00%plus insurance (per statute)Administration License 1195 0100.4605 Massage - investigation fee (enterprise or therapist) N/A 120.00$ 124.00$ 3.33% 128.00$ 3.23%new license only; hand deliverAdministration License 1195 0100.4105 Massage - therapy enterprise 12/31 120.00$ 124.00$ 3.33% 128.00$ 3.23%pro-rated if issued after 6/30 ($12/mo.); new license hand deliverAdministration License 1195 0100.4106 Massage - therapists12/31 60.00$ 62.00$ 3.33% 64.00$ 3.23%pro-rated if issued after 6/30 ($6/mo.); new license hand deliver; plus proof of professional insurance of $1,000,000Administration License 1177 0100.4105 Pawnbroker - initial license 12/31 12,050.00$ 12,050.00$ 0.00% 12,050.00$ 0.00%plus investigation fee and $5,000 bond; plus APS transaction fees (see Police section); prorated $1,004.17/mo.Administration License 1177 0100.4105 Pawnbroker - renewal license 12/31 6,000.00$ 6,000.00$ 0.00% 6,000.00$ 0.00%$5,000 bond; plus APS transaction fees (see Police section); prorated $500/mo.Administration License 1177 0100.4605 Pawnbroker - investigation fee (in state all of last 10 years) N/A 500.00$ 500.00$ 0.00% 500.00$ 0.00%per statuteAdministration License 1177 0100.4605 Pawnbroker - investigation fee (out of state any of last 10 years) N/A 1,000.00$ 1,000.00$ 0.00% 1,000.00$ 0.00%per statuteAdministration License 1160 0100.4105 Peddler and solicitorsdaily 15.00$ 15.00$ 0.00% 15.00$ 0.00%plus investigation feeAdministration License 1160 0100.4105 Peddler and solicitorsmonthly 175.00$ 175.00$ 0.00% 175.00$ 0.00%plus investigation feeAdministration License 1160 0100.4105 Peddler and solicitors12/31 300.00$ 300.00$ 0.00% 300.00$ 0.00%plus investigation feeAdministration License 1160 0100.4105 Peddler/solicitors/transient merchants - investigation fee (in state all of last 10 years) N/A 120.00$ 120.00$ 0.00% 120.00$ 0.00%plus $25 for each additional personAdministration License 1160 0100.4105 Peddler/solicitors/transient merchants - investigation fee (out of state any of last 10 years) N/A 125.00$ 125.00$ 0.00% 125.00$ 0.00%plus $125 for each additional personAdministration License 605 0100.4155 Refuse vehicle - company license 9/30 120.00$ 124.00$ 3.33% 128.00$ 3.23%plus insurance and DOT inspection reportAdministration License 605 0100.4155 Refuse vehicle - each vehicle 9/30 57.00$ 59.00$ 3.51% 61.00$ 3.39%plus insuranceAdministration License 1175 0100.4105 Secondhand goods dealers 12/31275.00$ 275.00$ 0.00% 275.00$ 0.00%plus $3,000 bond and investigation fee; plus APS transaction fees (see Police section); pro-rated $22.92/mo.)Administration License 1175 0100.4105 Secondhand goods dealers (exempt from regular secondhand license) 12/31 75.00$ 75.00$ 0.00% 75.00$ 0.00%exempt from police reportingAdministration License 1175 0100.4105 Secondhand goods dealer multiple sales sites 12/31 564.00$ 564.00$ 0.00% 564.00$ 0.00%plus $3,000 bond and investigation fee; pro-rated $47/mo.)Administration License 1175 0100.4605 Secondhand goods dealers - investigation fee (in state all of last 10 years) N/A 500.00$ 500.00$ 0.00% 500.00$ 0.00%per statuteAdministration License 1175 0100.4605 Secondhand goods dealers - investigation fee (out of state any of last 10 years) N/A 1,000.00$ 1,000.00$ 0.00% 1,000.00$ 0.00%per statuteAdministration License 1137 0100.4135 Tobacco (over the counter only) 12/31 325.00$ 325.00$ 0.00% 325.00$ 0.00%pro-rated $27.08/mo.Administration License 1160 0100.4105 Transient merchantsdaily 15.00$ 15.00$ 0.00% 15.00$ 0.00%plus investigation fee; limited to four events (1-4 days each)Administration License 1165 0100.4191 Tree trimmer12/31 100.00$ 100.00$ 0.00% 100.00$ 0.00%plus insurance and $2,500 bondAdministration License 1010 0100.XXXX License late fees - added to license revenue accountsAdministration License 1010 0100.XXXX License late fees - added to license revenue accountsAdministration Other 0100.4220 Address change administrative fee N/A 100.00$ 103.00$ 3.00% 106.00$ 2.91%Administration Other 0100.4403 Administrative charge for nuisance elimination/abatement N/A 100.00$ 103.00$ 3.00% 106.00$ 2.91%per incident plus actual costsAdministration Other 0100.4430 Certification of minutes and other documents N/A cost incurred cost incurred cost incurredAdministration Other 0100.4430 Certification of minutes (mailed) N/A cost incurred cost incurred cost incurredCity of Crystal 2019-2020 Proposed Fee ScheduleMain Section25% of license fee if one to seven days late50% of license fee if over seven days late (can be charged after 30 days late) Department Type City Code Accounting CodeDescriptionExpires 2018 Fee 2019 FeePercent Increase2020 FeePercent Increase CommentsCity of Crystal 2019-2020 Proposed Fee ScheduleMain SectionAdministration Other 0100.4430 City code bookN/A cost incurred cost incurred cost incurredAdministration Other 0100.4430 Copies of property deeds and liens N/A cost incurred cost incurred cost incurredAdministration Other 0100.4430 Copy of City Council or Economic Development Authority meeting on DVD N/A cost incurred cost incurredcost incurredAdministration Other 0100.4430 Data processing feeN/A cost incurred cost incurred cost incurredAdministration Other 340 0100.4414 Domestic Partner Registration Application N/A 40.00$ 40.00$ 0.00% 40.00$ 0.00%Administration Other 340 0100.4414 Domestic Partner Registration Amendments & Terminations N/A 10.00$ 10.00$ 0.00% 10.00$ 0.00%Administration Other 0100.4902 Filing for election - affidavit of candidacy application N/A 25.00$ 25.00$ 0.00% 25.00$ 0.00%per ordinance, section 4.10 of City CharterAdministration Other 1200 0100.4715 Fines - liquor violationsN/A Varies Varies Variesdetermined by governing bodyAdministration Other 1137 0100.4720 Fines - tobacco violations N/A Varies Varies Variesdetermined by governing bodyAdministration Other Homestead abatement applications N/A 30.00$ 30.00$ 0.00% 30.00$ 0.00%Administration Other 1185 3709.4950 Lawful Gambling - Net Profits 12/31 10% 10% 0.00% 10% 0.00% of organization's net profits derived within the city Administration Other 1185 3709.4950 Lawful Gambling - Lawful purpose expenditures 12/31 15% 15% 0.00% 15% 0.00% shortfall of organization's lawful purpose expenditures that must be expended within the trade area Administration Other 0100.4420 NotaryN/A 5.00$ 5.00$ 0.00% 5.00$ 0.00%per statuteAdministration Other 0100.4430 PhotocopyingN/A 0.25$ 0.25$ 0.00% 0.25$ 0.00%per side of a page (per statute)Administration Other 0100.4430 PhotocopyingN/A 0.50$ 0.50$ 0.00% 0.50$ 0.00%larger than 8 1/2 X 11 sheet (per sheet)Administration Other 0100.4420 Special assessment record requests N/A 25.00$ 25.00$ 0.00% 25.00$ 0.00%Building Permit 0100.4210 Building - basic 6 mo.6 mo.Building Permit 0100.4210 Building - grading permit 6 mo.Building Permit 0100.4210 Building - permit minimum60.00$ 63.00$ 5.00% 63.00$ 0.00%plus state surchargeBuilding 0100.2210 Building - Construction Mgmt. Agmt. Escrow (new construct.) 2,000.00$ 2,000.00$ 0.00% 2,000.00$ 0.00%Building 0100.2210 Building - Construction Mgmt. Agmt. Escrow (major addition) 1,000.00$ 1,000.00$ 0.00% 1,000.00$ 0.00%Building Permit 0100.4210 Building - minor moving bldgs, one location to another / diff. lot 6 mo. 63.00$ 63.00$ 0.00% 63.00$ 0.00%plus depositBuilding Permit 0100.4210 Building - moving 1 bldg. location to another location or diff. / lot 6 mo. 158.00$ 158.00$ 0.00% 158.00$ 0.00%plus depositBuilding Permit 0100.4210 Building - moving building on same lot 6 mo. 33.00$ 33.00$ 0.00% 33.00$ 0.00%plus depositBuilding Permit 0100.4210 Building - moving buildings over $500 value 6 mo. 8.00$ 8.00$ 0.00% 8.00$ 0.00%each; plus $200; plus depositBuilding Permit 0100.4210 Building - plan check - Residential - % of bldg permit 6 mo. 0.50$ 0.50$ 0.00% 0.50$ 0.00%per table 1-ABuilding Permit 0100.4210 Building - plan check - Commercial/Industrial - % of bldg permit fee 6 mo. 0.65$ 0.65$ 0.00% 0.65$ 0.00%per table 1-ABuilding Permit 0100.4210 Building - state contractors license surcharge 6 mo. 5.00$ 5.00$ 0.00% 5.00$ 0.00%Building Permit 0100.4210 Building - wrecking (minimum fee) 6 mo. 65.00$ 65.00$ 0.00% 65.00$ 0.00%flat fee, includes state surchargeBuilding Permit 0100.4210 Building - draintile6 mo. 115.00$ 115.00$ 0.00% 115.00$ 0.00%flat fee, includes state surchargeBuilding Permit 0100.4210 Building - window replacement, 1-3 windows 6 mo. 87.00$ 90.00$ 3.45% 92.00$ 2.22%flat fee, includes state surchargeBuilding Permit 0100.4210 Building - window replacement, 4 or more windows 6 mo. 169.00$ 174.00$ 2.96% 178.00$ 2.30%flat fee, includes state surchargeBuilding Permit 0100.4210 Building - patio door replacement 6 mo. 115.00$ 118.00$ 2.61% 121.00$ 2.54%flat fee, includes state surchargeBuilding Permit 0100.4210 Building - egress window replacement/install, 1 window 6 mo. 87.00$ 90.00$ 3.45% 92.00$ 2.22%flat fee, includes state surchargeBuilding Permit 0100.4210 Building - egress window replacement/install, 2 or more windows 6 mo. 115.00$ 118.00$ 2.61% 121.00$ 2.54%flat fee, includes state surchargeBuilding Permit 0100.4210 Building - garage door replacement, per door 6 mo. 60.00$ 63.00$ 5.00% 63.00$ 0.00%flat fee, includes state surchargeBuilding Permit 0100.4210 Building - siding new or replacement 6 mo. 158.00$ 163.00$ 3.16% 167.00$ 2.45%flat fee, includes state surchargeBuilding Permit 0100.4210 Building - tearoff and reroof 6 mo. 136.00$ 140.00$ 2.94% 144.00$ 2.86%flat fee, includes state surchargeBuilding Permit 0100.4210 Building - reroofing, add second layer 6 mo. 103.00$ 106.00$ 2.91% 109.00$ 2.83%flat fee, includes state surchargeBuilding Permit 0100.4210 Building - investigation fee varies varies1 X applicable permit feeBuilding Permit 0100.4210 Building - working without a permitvaries varies1 X applicable permit feeBuilding Permit 0100.4210 Building - reinspection fee65.00$ 65.00$ 0.00% 65.00$ 0.00%Building Permit 0100.4210 Building - administrative fee on refund of a building permit 20% 20% 0.00% 20% 0.00%of permit application feeBuilding Permit 0100.4210 Building - lead certification verification5.00$ 5.00$ 0.00% 5.00$ 0.00%per statute 326B.815, subd. 2Building Permit 0100.4220 Driveway construction6 mo. 93.00$ 96.00$ 3.23% 98.00$ 2.08%Building Permit 0100.4220 Driveway reconstruction/replacement/modification 6 mo. 93.00$ 96.00$ 3.23% 98.00$ 2.08%Building Permit 0100.4220 Sidewalk or curb and gutter construction6 mo. 65.00$ 67.00$ 3.08% 69.00$ 2.99%Building Permit 0100.4222 Electrical - new service/power supply 0-200 amp 100.00$ 105.00$ 5.00% 105.00$ 0.00%add $15 for each additional 100 ampsBuilding Permit 0100.4222 Electrical - replace existing main panel with new panel in same location 100.00$ 105.00$ 5.00% 105.00$ 0.00%Building Permit 0100.4222 Electrical - replace existing sub panel with new panel in same location 40.00$ 42.00$ 5.00% 42.00$ 0.00%Building Permit 0100.4222 Electrical - transformers up to 10 KVA10.00$ 10.50$ 5.00% 10.50$ 0.00%Building Permit 0100.4222 Electrical - transformers 11 to 74 KVA40.00$ 42.00$ 5.00% 42.00$ 0.00%Building Permit 0100.4222 Electrical - transformers 75 to 299 KVA60.00$ 63.00$ 5.00% 63.00$ 0.00%Building Permit 0100.4222 Electrical - transformers 300 KVA or more150.00$ 158.00$ 5.33% 158.00$ 0.00%Building Permit 0100.4222 Electrical - retro fit lighting0.65$ 0.69$ 6.15% 0.69$ 0.00%per fixtureBuilding Permit 0100.4222 Electrical - sign transformers8.00$ 8.50$ 6.25% 8.50$ 0.00%per unitBuilding Permit 0100.4222 Electrical - swimming pools80.00$ 84.00$ 5.00% 84.00$ 0.00%includes two trips, doesn't include circuitsBuilding Permit 0100.4222 Electrical - feeders/circuits 0 to 30 amp8.00$ 8.50$ 6.25% 8.50$ 0.00%Building Permit 0100.4222 Electrical - feeders/circuits 31 to 100 amp10.00$ 10.50$ 5.00% 10.50$ 0.00%add $5 for each additional 100 ampsBuilding Permit 0100.4222 Electrical - apartment buildings70.00$ 74.00$ 5.71% 74.00$ 0.00%per unit, doesn't include service/house wiringBuilding Permit 0100.4222 Electrical - traffic signals7.00$ 7.50$ 7.14% 7.50$ 0.00%per standardBuilding Permit 0100.4222 Electrical - street lights and lot lights4.00$ 4.25$ 6.25% 4.25$ 0.00%per poleBuilding Permit 0100.4222 Electrical - remote control or signal wiring0.75$ 0.79$ 5.33% 0.79$ 0.00%per deviceBuilding Permit Electrical - minimum fee per trip.40.00$ 42.00$ 5.00% 42.00$ 0.00%Residential maximum fee is $185 with a service of 200 amps or less; no maximum if service is larger than 200 ampsBuilding Permit 0100.4225 Fire - suppression6 mo.Building Permit 0100.4225 Fire - vent hood cleaning60.00$ 63.00$ 5.00% 63.00$ 0.00%flat fee, no state surchargeBuilding Permit 0100.4240 Mechanical6 mo. 60.00$ 63.00$ 5.00% 63.00$ 0.00%plus 2% of valuation over $2,900Building Permit 0100.4240 Mechanical - residential garage heater 6 mo. 65.00$ 67.00$ 3.08% 69.00$ 2.99%flat fee, includes state surchargeBuildingPermit 0100.4240 Mechanical - residential gas range installation 6 mo.n/a - new flat fee items67.00$ N/A 69.00$ 2.99%flat fee, includes state surcharge (new flat fee permit)BuildingPermit 0100.4240 Mechanical - residential gas dryer installation 6 mo.n/a - new flat fee items67.00$ N/A 69.00$ 2.99%flat fee, includes state surcharge (new flat fee permit)Building Permit 0100.4240 Mechanical - residential gas fireplace installation 6 mo. 65.00$ 67.00$ 3.08% 69.00$ 2.99%flat fee, includes state surchargeBuilding Permit 0100.4240 Mechanical - residential air conditioning new/replace 6 mo. 65.00$ 67.00$ 3.08% 69.00$ 2.99%flat fee, includes state surchargeBuilding Permit 0100.4240 Mechanical - residential furnace new/replace 6 mo. 87.00$ 89.00$ 2.30% 92.00$ 3.37%flat fee, includes state surchargeBuilding Permit 0100.4240 Mechanical - residential furnace and air conditioning new/replace 6 mo. 130.00$ 133.00$ 2.31% 137.00$ 3.01%flat fee, includes state surchargeBuilding Permit 0100.4240 Bldg. - administrative fee on refund of a mechanical permit 6 mo.20%?#VALUE! #DIV/0!of permit application feeBuilding Permit 0100.4205 Misc. - beer dispenser/ connected with water supply (6 mo.) 6 mo. 29.00$ 30.00$ 3.45% 31.00$ 3.33%Building Permit 0505.4250 Plumbing - abandoning/repair water service 6 mo. 29.00$ 30.00$ 3.45% 31.00$ 3.33%plus state surchargeBuilding Permit 0100.4250 Plumbing - blowoff basin 6 mo. 29.00$ 30.00$ 3.45% 31.00$ 3.33%plus state surchargeBuilding Permit 0100.4250 Plumbing - catch basin6 mo. 29.00$ 30.00$ 3.45% 31.00$ 3.33%plus state surchargeBuilding Permit 0100.4250 Plumbing - extension of water pipe or system 6 mo. 29.00$ 30.00$ 3.45% 31.00$ 3.33%plus state surchargeBuilding Permit 0100.4250 Plumbing - hydraulic sewer valve 6 mo. 29.00$ 30.00$ 3.45% 31.00$ 3.33%plus state surchargeper table 1-Aper table 1-A - NOTE FROM JEAN - SHOULD WE INCLUDE TABLE 1-A IN FEE SCHEDULE?)per table 1-A Department Type City Code Accounting CodeDescriptionExpires 2018 Fee 2019 FeePercent Increase2020 FeePercent Increase CommentsCity of Crystal 2019-2020 Proposed Fee ScheduleMain SectionBuilding Permit 0100.4250 Plumbing - new fixtures opening 6 mo. 29.00$ 30.00$ 3.45% 31.00$ 3.33%plus state surchargeBuilding Permit 0100.4250 Plumbing - permit minimum 6 mo. 60.00$ 63.00$ 5.00% 63.00$ 0.00%plus state surchargeBuilding Permit 0100.4250 Plumbing - water heater 6 mo. 50.00$ 51.00$ 2.00% 52.00$ 1.96%flat fee, includes state surchargeBuildingPermit 0100.4250 Plumbing - dishwasher6 mo. n/a - new flat fee item 51.00$ N/A 52.00$ 1.96%flat fee, includes state surcharge (new flat fee permit)UPDATED ON MASBuilding Permit 0100.4250 Plumbing - rainwater leader up to 10 stories 6 mo. 29.00$ 30.00$ 3.45% 31.00$ 3.33%plus state surchargeBuilding Permit 0100.4250 Plumbing - rainwater leader each additional 15 stories after the first 10 6 mo. 29.00$ 30.00$ 3.45% 31.00$ 3.33%plus state surchargeBuilding Permit 0100.4250 Plumbing - alterations over $500 6 mo. 29.00$ 30.00$ 3.45% 31.00$ 3.33%for each $500 of value, plus state surchargeBuilding Permit 0100.4250 Plumbing - replace water distribution piping or system 6 mo. 29.00$ 30.00$ 3.45% 31.00$ 3.33%plus state surchargeBuilding Permit 0100.4250 Plumbing - rough in fixtures/set in fixtures 6 mo. 18.00$ 18.00$ 0.00% 19.00$ 5.56%per fixture, plus state surchargeBuilding Permit 0100.4250 Plumbing - sewage ejector 6 mo. 29.00$ 30.00$ 3.45% 31.00$ 3.33%plus state surchargeBuilding Permit 0100.4250 Plumbing - sump or receiving tank 6 mo. 29.00$ 30.00$ 3.45% 31.00$ 3.33%plus state surchargeBuilding Permit 0100.4250 Plumbing - vacuum breaker 6 mo. 29.00$ 30.00$ 3.45% 31.00$ 3.33%plus state surchargeBuilding Permit 0100.4250 Plumbing - water piping, first 100 lineal feet 6 mo. 29.00$ 30.00$ 3.45% 31.00$ 3.33%plus state surchargeBuilding Permit 0100.4250 Plumbing - water piping, additional 100 lineal feet 6 mo. 29.00$ 30.00$ 3.45% 31.00$ 3.33%plus state surchargeBuilding Permit 0100.4250 Plumbing - water treating or softening device 6 mo. 29.00$ 30.00$ 3.45% 31.00$ 3.33%flat fee, includes state surchargeBuilding Permit 0100.4250 Plumbing - administrative fee on refund of a plumbing permit 6 mo. 20.00% 20.00% 0.00% 20.00% 0.00%of permit application feeBuilding Permit 0100.4255 Sewer - permit minimum 6 mo. 67.00$ 69.00$ 2.99% 71.00$ 2.90%plus state surchargeBuilding Permit 0100.4255 Sewer - new connection charge 6 mo. 67.00$ 69.00$ 2.99% 71.00$ 2.90%plus state surchargeBuilding Permit 0100.4255 Sewer - storm sewer connection 6 mo. 67.00$ 69.00$ 2.99% 71.00$ 2.90%plus state surchargeBuilding Permit 0100.4260 Signs - temporary1 week 50.00$ 51.00$ 2.00% 52.00$ 1.96%Building Permit 405 0100.4260 Signs - other than temporary 6 mo. 80.00$ 82.00$ 2.50% 85.00$ 3.66%plus $1.15 per square footBuilding Permit 0100.4440 State surcharge (no valuation) 6 mo. 1.00$ 1.00$ 0.00% 1.00$ 0.00% effective July 1, 2015 Building Permit 0100.4440 State surcharge/work with value 6 mo. .0005 x val .0005 x value 0.00% .0005 x value 0.00%Building Permit 0100.4270 Water - new connection charge 6 mo. 67.00$ 69.00$ 2.99% 71.00$ 2.90%plus state surchargeBuilding Permit 0100.4270 Water - water meter, fire meter 6 mo. 67.00$ 69.00$ 2.99% 71.00$ 2.90%plus state surchargeCode Enforcement Other 306 0100.4725 Fine - admin. enforcement, Level One Violation - 1st violation 75.00$ 75.00$ 0.00% 75.00$ 0.00%Code Enforcement Other 306 0100.4725 Fine - admin. enforcement, Level One Violation - 2nd violation 90.00$ 90.00$ 0.00% 90.00$ 0.00%Code Enforcement Other 306 0100.4725 Fine - admin. enforcement, Level One Violation - 3rd violation 110.00$ 110.00$ 0.00% 110.00$ 0.00%Code Enforcement Other 306 0100.4725 Fine - admin. enforcement, Level One Violation - 4th violation 130.00$ 130.00$ 0.00% 130.00$ 0.00%Code Enforcement Other 306 0100.4725 Fine - admin. enforcement, Level Two Violation - 1st violation 120.00$ 120.00$ 0.00% 120.00$ 0.00%Code Enforcement Other 306 0100.4725 Fine - admin. enforcement, Level Two Violation - 2nd violation 140.00$ 140.00$ 0.00% 140.00$ 0.00%Code Enforcement Other 306 0100.4725 Fine - admin. enforcement, Level Two Violation - 3rd violation 170.00$ 170.00$ 0.00% 170.00$ 0.00%Code Enforcement Other 306 0100.4725 Fine - admin. enforcement, Level Two Violation - 4th violation 220.00$ 220.00$ 0.00% 220.00$ 0.00%Code Enforcement Other 306 0100.4725 Fine - admin. enforcement, Level Three Violation - 1st violation 180.00$ 180.00$ 0.00% 180.00$ 0.00%Code Enforcement Other 306 0100.4725 Fine - admin. enforcement, Level Three Violation - 2nd violation 220.00$ 220.00$ 0.00% 220.00$ 0.00%Code Enforcement Other 306 0100.4725 Fine - admin. enforcement, Level Three Violation - 3rd violation 260.00$ 260.00$ 0.00% 260.00$ 0.00%Code Enforcement Other 306 0100.4725 Fine - admin. enforcement, Level Three Violation - 4th violation 340.00$ 340.00$ 0.00% 340.00$ 0.00%Code Enforcement Other 306 0100.4725 Fine - admin. enforcement, Level Four Violation - 1st violation 260.00$ 260.00$ 0.00% 260.00$ 0.00%Code Enforcement Other 306 0100.4725 Fine - admin. enforcement, Level Four Violation - 2nd violation 320.00$ 320.00$ 0.00% 320.00$ 0.00%Code Enforcement Other 306 0100.4725 Fine - admin. enforcement, Level Four Violation - 3rd violation 380.00$ 380.00$ 0.00% 380.00$ 0.00%Code Enforcement Other 306 0100.4725 Fine - admin. Enforcement, Level Four Violation - 4th violation 500.00$ 500.00$ 0.00% 500.00$ 0.00%Gymnasiums (limited set-up)CCC Other 2721.4513 1 Gym: Per Hour Max Fee (Non-Resident) weekday50.00$ 50.00$ 0.00% 50.00$ 0.00%CCC Other 2721.4513 1 Gym: Per Hour Max Fee (Non-Resident) weekend60.00$ 60.00$ 0.00% 60.00$ 0.00%CCC Other 2721.4513 2 Gyms: Per Hour Max Fee (Non-Resident) weekday 75.00$ 75.00$ 0.00% 75.00$ 0.00%CCC Other 2721.4513 2 Gyms: Per Hour Max Fee (Non-Resident) weekend 85.00$ 85.00$ 0.00% 85.00$ 0.00%CCC Other 2721.4513 3 Gyms: Per Hour Max Fee (Non-Resident) weekday90.00$ 90.00$ 0.00% 90.00$ 0.00%CCC Other 2721.4513 3 Gyms: Per Hour Max Fee (Non-Resident) weekend100.00$ 100.00$ 0.00% 100.00$ 0.00%CCC Other 2721.4513 1 Gym: 7+ hours (up to 100 people) weekday 350.00$ 350.00$ 0.00% 350.00$ 0.00%CCC Other 2721.4513 1 Gym: 7+ hours (up to 100 people) weekend 420.00$ 420.00$ 0.00% 420.00$ 0.00%CCC Other 2721.4513 2 Gyms: 7+ hours (101 to 250 people) weekday 525.00$ 525.00$ 0.00% 525.00$ 0.00%CCC Other 2721.4513 2 Gyms: 7+ hours (101 to 250 people) weekend 595.00$ 595.00$ 0.00% 595.00$ 0.00%CCC Other 2721.4513 3 Gyms: 7+ hours (251 to 400 people) weekday 630.00$ 630.00$ 0.00% 630.00$ 0.00%3 Gyms: 7+ hours (251 to 400 people) weekend 700.00$ 700.00$ 0.00% 700.00$ 0.00%2730.4462 Forest gym - Same Rates as Community Center (different code)Rental fee adjustmentsCCC Other 2721.4513 Event Set-up/Clean-up Fee, Meeting / Show (each gym) 60.00$ 60.00$ 0.00% 60.00$ 0.00%CCC Other 2721.4513 Event Set-up/Clean-up Fee, Food / Banquet Event (each room or gym) 250.00$ 250.00$ 0.00% 250.00$ 0.00%CCC Other 2721.4513 Alcohol Permit Fee50.00$ 50.00$ 0.00% 50.00$ 0.00%CCC Other 2721.4513 Alcohol Security Fee (Crystal Police) - per room / per hour (minimum 3 hours) 70.00$ 70.00$ 0.00% 70.00$ 0.00%CCC Other 2721.4513 Crystal Resident (or non-Crystal service organization) Gym Rental Discount 20% 20% 0.00% 20% 0.00%CCC Other 2721.4513 Crystal Youth or Service Organization Gym Rental Discount 50% 50% 0.00% 50% 0.00%CCC Other 2721.4520 Open gym - Adult5.00$ 5.00$ 0.00% 5.00$ 0.00%per timeCCC Other 2721.4523 Open gym - Youth2.00$ 2.00$ 0.00% 2.00$ 0.00%per time2730.4462 Forest Gym - Same rates as Community Center (different code)Meeting Rooms (includes set-up)CCC Other 2721.4513 Large Room (Minnesota) - Per Hour weekday 100.00$ 100.00$ 0.00% 100.00$ 0.00%CCC Other 2721.4513 Large Room (Minnesota) - Per Hour weekend 115.00$ 115.00$ 0.00% 115.00$ 0.00%CCC Other 2721.4513 Large Room (Minnesota) - 7+ hours weekday 700.00$ 700.00$ 0.00% 700.00$ 0.00%CCC Other 2721.4513 Large Room (Minnesota) - 7+ hours weekend 805.00$ 805.00$ 0.00% 805.00$ 0.00%CCC Other 2721.4513 Medium Room (Combined Crystal) - Per Hour weekday 50.00$ 50.00$ 0.00% 50.00$ 0.00%capacity 100CCC Other 2721.4513 Medium Room (Combined Crystal) - Per Hour weekend 60.00$ 60.00$ 0.00% 60.00$ 0.00%capacity 100CCC Other 2721.4513 Medium Room (Combined Crystal) - 7+ hours weekday 350.00$ 350.00$ 0.00% 350.00$ 0.00%capacity 100CCC Other 2721.4513 Medium Room (Combined Crystal) - 7+ hours weekend 420.00$ 420.00$ 0.00% 420.00$ 0.00%capacity 100CCC Other 2721.4513 Small room (Activity or Game) - Per Hour weekday 40.00$ 40.00$ 0.00% 40.00$ 0.00%capacity 50-70CCC Other 2721.4513 Small room (Activity or Game) - Per Hour weekend 50.00$ 50.00$ 0.00% 50.00$ 0.00%capacity 50-70CCC Other 2721.4513 Small room (Activity or Game) - 7+ Hours weekday 280.00$ 280.00$ 0.00% 280.00$ 0.00%capacity 50-70CCC Other 2721.4513 Small room (Activity or Game) - 7+ Hours weekend 350.00$ 350.00$ 0.00% 350.00$ 0.00%capacity 50-70CCC Other 2721.4513 Small room - Youth birthday party weekend 60.00$ 60.00$ 0.00% 60.00$ 0.00%2 hours, includes 1 hour gym time if availableCCC Other 2721.4513 Very Small Room (Creek) - Per Hour weekday 20.00$ 20.00$ 0.00% 20.00$ 0.00%capacity 12CCC Other 2721.4513 Very Small Room (Creek) - Per Hour weekend 30.00$ 30.00$ 0.00% 30.00$ 0.00%capacity 12same rates as Community Centersame rates as Community Center Department Type City Code Accounting CodeDescriptionExpires 2018 Fee 2019 FeePercent Increase2020 FeePercent Increase CommentsCity of Crystal 2019-2020 Proposed Fee ScheduleMain SectionCCC Other 2721.4513 Very small room (Creek) - 7+ Hours weekday 140.00$ 140.00$ 0.00% 140.00$ 0.00%capacity 12CCC Other 2721.4513 Very small room (Creek) - 7+ Hours weekend 210.00$ 210.00$ 0.00% 210.00$ 0.00%capacity 12Rental Fee AdjustmentsCCC Other 2721.4513 Crystal Resident (or non-Crystal service organization) Room Rental Discount 20% 20% 0.00% 20% 0.00%CCC Other 2721.4513 Crystal Youth or Service Organization Room Rental Discount 50% 50% 0.00% 50% 0.00%CCC Other 2721.4523 Youth Group Overnights (no discount) weekend 1,000.00$ 1,000.00$ 0.00% 1,000.00$ 0.00%no discountAdd-On Items (no discount)CCC Other 2721.4513 Kitchen (with rental) - Flat Fee (no discount)weekday 40.00$ 40.00$ 0.00% 40.00$ 0.00%CCC Other 2721.4513 Kitchen (with rental) - Flat Fee (no discount)weekend 60.00$ 60.00$ 0.00% 60.00$ 0.00%CCC Other 2721.4513 Kitchen - (outside room rental time) - Per Hour any day 40.00$ 40.00$ 0.00% 40.00$ 0.00%CCC Other 2721.4513 Coffee service varies varies variesCCC Other 2721.4513 Electronic Equipment, Lectern, etc. varies varies variesCCC Other 2721.4513 Building early opening - Per Hour weekday 30.00$ 30.00$ 0.00% 30.00$ 0.00%CCC Other 2721.4513 Building early opening - Per Hour weekend 40.00$ 40.00$ 0.00% 40.00$ 0.00%Damage Deposits (no discount)CCC Other 2721.2210 All Day Events - Per Gym or Room200.00$ 200.00$ 0.00% 200.00$ 0.00%CCC Other 2721.2210 Kitchen Use 100.00$ 100.00$ 0.00% 100.00$ 0.00%CCC Other 2721.2210 Group Overnights200.00$ 200.00$ 0.00% 200.00$ 0.00%Engineering Permit 0100.4265 Right of way permit-Temporary Obstruction Varies N/A -$ #VALUE! -$ #DIV/0!Examples include: Little Free Library, Block Party Closure, Temporary Street Closure (for forestry)Engineering Permit 0100.4265 Right of way permit6 mo. 65.00$ 67.00$ 3.08% 70.00$ 4.48%Engineering Permit 0100.4265 ROW User Registration Annual N/A 50.00$ 50.00$ 0.00%Annual registration fee for companies that have permanent facilities in ROWEngineering Permit 0100.4265 Street Right of Way - utility/telecommunication - first 500 lineal feet 34.00$ 35.00$ 2.94% 37.00$ 5.71%plus right of way permitEngineering Permit 0100.4265 Street Right of Way - utility/telecommunication - after first 500 lineal feet 0.10$ 0.10$ 0.00% 0.12$ 20.00%per foot, plus right of way permit and first 500 feetEngineering Permit 0100.4265 Street right-of-way (telecommunication) - small cell wireless facility permit 65.00$ 67.00$ 3.08% 70.00$ 4.48%plus other management costsEngineering Permit 0100.4265 Street right-of-way (telecommunication) - small cell wireless facility agreement (rent) 150.00$ per statute per statutePer State Statute 237.163 Subd 6 per year (to collocate on the city structure)Engineering Permit 0100.4265 Street right-of-way (telecommunication) - small cell wireless facility agreement (maintenance) 25.00$ per statute per statutePer State Statute 237.163 Subd 6 per year (for maintenance associated with collocation) Engineering Permit 0100.4265 Street right-of-way (telecommunication) - small cell wireless facility agreement (electrical service) 73.00$ per statute per statutePer State Statute 237.163 Subd 6 less than or equal to 100 max. watts; per month/per node; plus actual costs of electricity, if applicableEngineering Permit 0100.4265 Street right-of-way (telecommunication) - small cell wireless facility agreement (electrical service) 182.00$ per statute per statutePer State Statute 237.163 Subd 6 per radio node over 100 max. watts; per month; plus actual costs of electricity, if applicableEngineering Other 0100.4430 Copies (on engineering copier; 3' wide paper)3.50$ 3.75$ 7.14% 3.75$ 0.00%per lineal footEngineering Other 0100.4430 Map - City streets4.50$ 4.50$ 0.00% 4.50$ 0.00%Engineering Other 0100.4430 Map - City streets, including house numbers8.50$ 8.50$ 0.00% 8.50$ 0.00%Engineering Other 0100.4430 Map - Zoning6.50$ 6.50$ 0.00% 6.50$ 0.00%Engineering Other 0100.4430 Plan specifications and bid packetsvaries varies #VALUE! varies #VALUE!depends on number of pages and size of sheets Engineering Other 0100.4420 Well water samples22.75$ 23.00$ 1.10% 23.00$ 0.00%plus laboratory feeEngineering Other 0100.4627 Public Works birthday party package150.00$ 155.00$ 3.33% 160.00$ 3.23%plus optional supply items#DIV/0!EDA Other 0220.4402 Tax Increment Financing application fee2,000.00$ 2,060.00$ 3.00% 2,120.00$ 2.91%non-refundableEDA Other 0220.2210 Tax Increment Financing application deposit 10,000.00$ 10,000.00$ 0.00% 10,000.00$ 0.00%balance refunded or additional amount to be billed to actual expensesEDA Other 0220.2210 Bond financing application deposit10,000.00$ 10,000.00$ 0.00% 10,000.00$ 0.00%EDA Other 0220.4425 Bond financing administrative fee, payable prior to bond delivery 1% 1% 0.00% 1% 0.00%percent of the principal of the bonds issuedEDA Other 0220.4425 Deemed refunding of bonds creating a reissuance for Federal tax purposes 2,000.00$ 2,060.00$ 3.00% 2,120.00$ 2.91%non-refundableEDA Other 0220.4425 Issuance of bonds for another political subdivision for a project in the city 2,000.00$ 2,060.00$ 3.00% 2,120.00$ 2.91%non-refundable#DIV/0!Finance Other 0100.4403 Admin. charge for billing city provided services (non-UB) 60.00$ 60.00$ 0.00% 60.00$ 0.00%Finance Other 0100.4402 Admin. charge for certification of delinquent accounts (non-UB) 60.00$ 60.00$ 0.00% 60.00$ 0.00%Finance Other 0100.4402 Admin. charge for delinquent accounts turned over for collection (non-UB) 60.00$ 60.00$ 0.00% 60.00$ 0.00%Finance Other 0100.4430 Budget, copy25.00$ 30.00$ 20.00% 30.00$ 0.00%Finance Other 0100.4430 Annual Financial Report, copy25.00$ 30.00$ 20.00% 30.00$ 0.00%Finance Other 0100.21XX COBRA premiums for health/dental/life insurance actual cost actual cost actual costFinance Other 0100.4402 COBRA 2% administration charge2% of premium N/A N/A #VALUE!Cobra is outsourced to 3rd partyFinance Other 0100.4075 Interest rate for certification of delinquent accounts (non-UB) 12% -100.00% #DIV/0!per yearFinance Other 0100.4430 Mailing list printed on address labels22.00$ 25.00$ 13.64% 25.00$ 0.00%for up to 500 labels, then $0.04 per labelFinance Other 0100.4430 Mailing list printed on computer disc22.00$ N/A N/A #VALUE!Computer disc is no longer an optionFinance Other 0100.4430 Mailing list printed on paper0.25$ 0.30$ 20.00% 0.30$ 0.00%per pageFinance Other 0100.4430 New resident list33.00$ 35.00$ 6.06% $35 0.00%fee for 12-month subscriptionFinance Other 0100.4402 Returned check fee30.00$ 30.00$ 0.00% 30.00$ 0.00%per check#DIV/0! #DIV/0!Fire Other 955 0100.4711 False alarms fourth call per year100.00$ 100.00$ 0.00% 100.00$ 0.00%first three false alarms are no chargeFire Other 955 0100.4711 False alarms fifth call per year200.00$ 200.00$ 0.00% 200.00$ 0.00%Fire Other 955 0100.4711 False alarms sixth call per year400.00$ 400.00$ 0.00% 400.00$ 0.00%Fire Other 955 0100.4711 False alarms each additional call beyond the sixth call 400.00$ 400.00$ 0.00% 400.00$ 0.00%possible imposition of fire watch#DIV/0! #DIV/0!Forestry Other 2020 0100.4403 Admin. charge for tree trimming and/or removal 118.45$ -100.00% #DIV/0!actual cost, plus one admin fee for each incidentForestry Other 640 0100.4403 Admin. charge for grass and/or weed mowing46.35$ -100.00% #DIV/0!one admin fee for each incidentForestry Other 640 0100.4403 Charge for grass and/or weed mowing cost incurred cost incurred cost incurred #VALUE!actual cost, plus one admin fee for each incidentForestry Other 515.13 0100.4403 Admin. charge to clear intersection and/or driveway site triangles 46.35$ -100.00% #DIV/0!actual cost, plus one admin fee for each incidentForestry Other 800.03 0100.4403 Admin. charge to clear plantings in street and/or sidewalk easements 46.35$ -100.00% #DIV/0!actual cost, plus one admin fee for each incidentForestry Permit 0100.4205 Natural vegetation landscape 72.10$ -100.00% #DIV/0!per PID#DIV/0!Health Permit 0100.4205 Licensed facility plan review - new facility 1 x license fee 1 x license fee 1 x license fee #VALUE!Health Permit 0100.4205 Licensed facility plan review - remodeling½ x license fee ½ x license fee ½ x license fee #VALUE!#DIV/0!Housing License 0100.4285 Rental license fee - duplexes 1 year 240.00$ 240.00$ 0.00% 240.00$ 0.00%expires one year from date of issuanceHousing License 0100.4285 Rental license fee - triplexes 1 year 300.00$ 300.00$ 0.00% 300.00$ 0.00%expires one year from date of issuanceHousing License 0100.4285 Rental license fee - four plexes 1 year 360.00$ 360.00$ 0.00% 360.00$ 0.00%expires one year from date of issuanceHousing License 0100.4285 Rental license fee - five units and over 1 year 360.00$ 360.00$ 0.00% 360.00$ 0.00%per building, plus $18 per unit in 2019 and $20 per unit in 2020Housing License 0100.4285 Rental license fee - late fee/ penalty 1x license fee see comments see comments25% surcharge if 11-20 days late; 50% if 21-30 days late; 100% if >30 days lateIS THERE A BASE CHARGE OR HOW IS THIS CALCULATED? Department Type City Code Accounting CodeDescriptionExpires 2018 Fee 2019 FeePercent Increase2020 FeePercent Increase CommentsCity of Crystal 2019-2020 Proposed Fee ScheduleMain SectionHousing License 0100.4285 Rental license fee - single family homes1 year 170.00$ 170.00$ 0.00% 170.00$ 0.00%Housing License 0100.4285 Rental license fee - suspended license reinstatement fee 100.00$ 100.00$ 0.00% 100.00$ 0.00%Housing License 0100.4285 Administrative fee on refund of application fee 20% 20% 0.00% 20% 0.00%of application feeHousing License 0100.4285 Rental license fee - failure to demonstrate financial resp. 1x license fee see comments see comments25% surcharge if 11-20 days late; 50% if 21-30 days late; 100% if >30 days lateHousing Other 0100.4285 Rental reinspection fees - duplexes, triplexes75.00$ 75.00$ 0.00% 75.00$ 0.00%Housing Other 0100.4285 Rental reinspection fees - multiples100.00$ 100.00$ 0.00% 100.00$ 0.00%per building, plus $5 per unitHousing Other 0100.4285 Rental reinspection fees - single family homes60.00$ 60.00$ 0.00% 60.00$ 0.00%Housing Other 0100.4276 Vacant building registration fee 1 year 600.00$ 600.00$ 0.00% 700.00$ 16.67%expires one year from date of issuanceHousing Other 0100.4276 Administrative Fee for vacant building registration 60.00$ 60.00$ 0.00% 70.00$ 16.67%Planning Other 0100.4418 Administrative appeal200.00$ 205.00$ 2.50% 210.00$ 2.44%Planning Other 0100.4418 Telecommunication towers2,000.00$ 2,000.00$ 0.00% 2,000.00$ 0.00%plus escrow of 500% of fee for the City's expensesPlanning Other 0100.4418 Comprehensive plan amendment600.00$ 615.00$ 2.50% 630.00$ 2.44%plus escrow of 100% of fee for the City's expensesPlanning Other 0100.4430 Comprehensive plan copy20.00$ 20.00$ 0.00% 20.00$ 0.00%Planning Other 0100.4418 Conditional use permit600.00$ 615.00$ 2.50% 630.00$ 2.44%plus escrow of 100% of fee for the City's expensesPlanning Other 0100.4418 Environmental assessment worksheet1,000.00$ 1,025.00$ 2.50% 1,050.00$ 2.44%plus escrow of 500% of fee for the City's expensesPlanning Other 0100.4418 Flood plain/wetland alteration500.00$ 515.00$ 3.00% 530.00$ 2.91%plus escrow of 500% of fee for the City's expensesPlanning Other 0100.4418 Planned development1,200.00$ 1,230.00$ 2.50% 1,260.00$ 2.44%plus escrow of 100% of fee for the City's expensesPlanning Other 0100.4418 Adjacent parcel land conveyance (shifting a lot line) 200.00$ 205.00$ 2.50% 210.00$ 2.44%plus escrow of 100% of fee for the City's expensesPlanning Other 0100.4418 Lot division or combination (of previously platted lots) 400.00$ 410.00$ 2.50% 420.00$ 2.44%plus escrow of 100% of fee for the City's expensesPlanning Other 0100.4418 Plat600.00$ 615.00$ 2.50% 630.00$ 2.44%plus $62 per lot over twoPlanning Other 0100.4418 Park Dedication upon Subdivision of Land - Commercial varies 5,000.00$ 5,000.00$ per acre (see City Code 525.05 Subd. 12)Planning Other 0100.4418 Park Dedication upon Subdivision of Land - Residential varies 1,000.00$ 1,000.00$ per dwelling unit (see City Code 525.05 Subd. 12)Planning Other 0100.4418 Zoning amendment (ordinance text of map rezoning) 600.00$ 615.00$ 2.50% 630.00$ 2.44%plus escrow of 100% of fee for the City's expensesPlanning Other 0100.4418 Site plan review600.00$ 615.00$ 2.50% 630.00$ 2.44%plus escrow of 50% of fee for the City's expensesPlanning Other 0100.4418 Vacations of a public street or easement500.00$ 515.00$ 3.00% 530.00$ 2.91%plus escrow of 100% of fee for the City's expensesPlanning Other 0100.4418 Variance500.00$ 515.00$ 3.00% 530.00$ 2.91%plus escrow of 50% of fee for the City's expensesPlanning Other 0100.4418 Zoning certificate100.00$ 100.00$ 0.00% 105.00$ 5.00%Planning Other 0100.4430 Zoning book10.00$ 10.00$ 0.00% 10.00$ 0.00%PoliceLicense6000100.4145Animal - dog license/ spayed or neutered (when rabies shot expires)17.00$ PoliceLicense6000100.4145Animal - dog license/ unaltered (when rabies shot expires)32.00$ Police Permit 1310 0100.4205 Parkingseasonal 35.00$ 35.00$ 0.00% 35.00$ 0.00%if more than one vehiclePolice Other 600 0100.4603 Animal - animal boarding per day 32.00$ 32.00$ 0.00% 32.00$ 0.00%plus sales taxPolice Other 600 0100.4603 Animal - animal impound (1st offense)40.00$ 40.00$ 0.00% 40.00$ 0.00%plus sales taxPolice Other 600 0100.4603 Animal - animal impound (2nd offense)80.00$ 80.00$ 0.00% 80.00$ 0.00%plus sales taxPolice Other 600 0100.4603 Animal - animal impound (3rd offense)120.00$ 120.00$ 0.00% 120.00$ 0.00%plus sales taxPolice Other 0100.4145 Animal - rabies release deposit35.00$ 35.00$ 0.00% 35.00$ 0.00%Police Other 0100.4604 Animal - dangerous dog registration fee250.00$ 250.00$ 0.00% 250.00$ 0.00%Police Other 0100.4604 Animal - potentially dangerous animal appeal fee 50.00$ 50.00$ 0.00% 50.00$ 0.00%Police Other 0100.4604 Animal - dangerous animal appeal fee100.00$ 100.00$ 0.00% 100.00$ 0.00%and up to $1,000 of actual expensePolice Other 0100.4610 Copy of state accident reportvaries varies #VALUE! varies #VALUE!fee per state statutePolice Other 0100.4610 Copy of police reportvaries varies #VALUE! varies #VALUE!fee per state statutePolice Other 0100.4615 Copy of video tape (of incidents filmed from squad cars) 50.00$ 50.00$ 0.00% 50.00$ 0.00%eachPolice Other 0100.4615 Copy of video tape (of incidents filmed by body camera) 50.00$ 50.00$ 0.00% 50.00$ 0.00%eachPolice Other 0100.4615 Copy of electronic data (digital, audio & video)28.00$ 28.00$ 0.00% 28.00$ 0.00%per requestPolice Other 0100.4615 Copy of electronic jail video55.00$ 55.00$ 0.00% 55.00$ 0.00%eachPolice Other 955 0100.4710 False alarms (3-5 calls per year)80.00$ 85.00$ 6.25% 85.00$ 0.00%Police Other 955 0100.4710 False alarms (6-10 calls per year)120.00$ 125.00$ 4.17% 125.00$ 0.00%Police Other 955 0100.4710 False alarms (11-15 calls per year)160.00$ 165.00$ 3.13% 165.00$ 0.00%Police Other 955 0100.4710 False alarms (16 or more calls per year)200.00$ 205.00$ 2.50% 205.00$ 0.00%Police Other 0100.4611 Fingerprinting fee (resident)30.00$ 30.00$ 0.00% 30.00$ 0.00%for first card; each additional card $5Police Other 0100.4612 Pawn services - transaction fee4.00$ 4.00$ 0.00% 4.00$ 0.00%per transactionPolice Other 0100.4612 Pawn services - failure to report penalty50.00$ 50.00$ 0.00% 50.00$ 0.00%per dayPolice Other 0100.4615 Photos of accidents37.00$ 37.00$ 0.00% 37.00$ 0.00%plus cost of processing picturesYouth ProgrammingRecreation Other 2010.4455 Youth - basketball$45-$65 $45-$65 $45-$65per sessionRecreation Other 2010.4455 Youth - dance$45-$150$48-200 $48-200per sessionRecreation Other 2010.4455 Youth - flag football$59-$75 $59-$75 $59-$75per sessionRecreation Other 2010.4455 Youth - grade school (other)$20-125$20-140 $20-140per classRecreation Other 2010.4455 Youth - indoor sportsseasonal cost + $1.50 cost + $1.50 cost + $1.50depends on activityRecreation Other 2010.4455 Youth - ticketsseasonal cost + $1.50 cost + $1.50 cost + $1.50depends on activityRecreation Other 2010.4455 Youth - playgrounds$23-$27$23-$30 $23-$30per sessionRecreation Other 2010.4455 Youth - preschool - open gym / per time3.00$ 3.00$ 0.00% 3.00$ 0.00%Recreation Other 2010.4455 Youth - preschool - open gym / 10-punch card20.00$ 20.00$ 0.00% 20.00$ 0.00%10 punchesRecreation Other 2010.4455 Youth - preschool - special events/other seasonal $14-$65$4-$65 $4-$65per sessionRecreation Other 2010.4455 Youth - preschool - summer seasonal $25-$65 $25-$65 $25-$65per sessionRecreation Other 2010.4455 Youth - soccer$50-$60$50-$65 $50-$65per sessionRecreation Other 2010.4455 Youth - T-Ball/ mite ball$45-$55 $45-$55 $45-$55per sessionRecreation Other 2010.4455 Youth - teen activitiesvaries varies variesfor specific eventRecreation Other 2010.4455 Youth - tennis instruction$40-$70 $40-$70per sessionRecreation Other 2010.4455 Youth - unscheduled$20-$125 $20-$125 $20-$125per sessionAdult ProgrammingRecreation Other 2215.4460 Adult - exercise - other seasonal $32-$80$32-$80 $32-$80$5 for drop insRecreation Other 2250.4460 Adult - softball - co-rec seasonal $510-$850$520-$860 $520-$860per team, per sessionRecreation Other 2260.4460 Adult - softball - mens seasonal $510-$850$520-$860 $520-$860per team, per sessionRecreation Other 2290.4460 Adult - tennis leagueseasonal 25.00$ 25.00$ 0.00% 25.00$ 0.00%cooperative programRecreation Other 2338.4460 Adult - pickleball drop in seasonal 3.00$ 3.00$ 0.00% 3.00$ 0.00%per timeRecreation Other 2338.4460Adult - pickleball punch membership card (residents/senior center members)seasonal 12.00$ $30 - $50 $30 - $50for 3 monthsRecreation Other 2338.4460Adult - pickleball punch membership card (non senior center members)seasonal 17.00$ $35 - $55 $35 - $55for 3 monthsRecreation Other 2300.4460 Adult - unscheduled - resident seasonal $4-$11 $4-$11 $4-$11per hour of instruction Department Type City Code Accounting CodeDescriptionExpires 2018 Fee 2019 FeePercent Increase2020 FeePercent Increase CommentsCity of Crystal 2019-2020 Proposed Fee ScheduleMain SectionRecreation Other 2310.4460 Adult - volleyball - co-rec seasonal $290-$310 $290-$310 $290-$310per team, per sessionRecreation Other 2320.4460 Adult - volleyball - mens seasonal $290-$310 $290-$310 $290-$310per team, per sessionRecreation Other 2350.4460 Adult - volleyball - womens seasonal $290-$310 $290-$310 $290-$310per team, per sessionRecreation Other 2340.4460 Adult - open volleyball seasonal 50.00$ 50.00$ 0.00% 50.00$ 0.00%Senior ProgrammingRecreation Other 2405.4465 Seniors - art classes - resident seasonal varies varies variesfee determined by contracted instructorRecreation Other 2410.4465 Seniors - defensive driving - AARP course fee seasonal varies varies variesfee determined by AARPRecreation Other 2410.4465 Seniors - defensive driving - local service fee seasonal $2 R/$4 $2 R/$4 $2 R/$4Recreation Other 2420.4465 Seniors - membership dues seasonal 12.00$ 12.00$ 0.00% 12.00$ 0.00%Recreation Other 2420.4465 Seniors - membership dues - non-resident seasonal 19.00$ 19.00$ 0.00% 19.00$ 0.00%Recreation Other 2425.4465 Seniors - fitnessseasonal 5.00$ 5.00$ 0.00% 5.00$ 0.00%per class; $5 for drop insRecreation Other 2435.4465 Seniors - miscellaneous classes seasonalcost + $3.50 cost + $3.50 cost + $3.50Recreation Other 2440.4465 Seniors - special events seasonal varies varies variesplus direct cost of event cooperative programRecreation Other 2445.4465 Seniors - tripsseasonal cost + $3.50 cost + $3.50 cost + $3.50Park FacilitiesRecreation Other 2710.4485 Picnic pavillion - 5 hours weekday 65.00$ 65.00$ 0.00% 65.00$ 0.00%Recreation Other 2710.4485 Picnic pavillion - 5 hours weekend 70.00$ 70.00$ 0.00% 70.00$ 0.00%Recreation Other 2710.4485 Park building (Except Becker) - 5 hours with Pavillion any day 30.00$ 30.00$ 0.00% 30.00$ 0.00%Recreation Other 2710.4485 Small Park Structures (Hagemeister) - per hour seasonal 75.00$ 75.00$ 0.00% 75.00$ 0.00%Recreation Other 2710.4485 Sports Field Rental - Youth - Per Hour any day 10.00$ 10.00$ 0.00% 10.00$ 0.00%Recreation Other 2710.4485 Sports Field Rental - Adult - Per Hour any day 20.00$ 20.00$ 0.00% 20.00$ 0.00%Recreation Other 2710.4485 Sports Field Rental - All Day Tournament any day 200.00$ 200.00$ 0.00% 200.00$ 0.00%Rental Fee AdjustmentsRecreation Other 2710.4485 Crystal Resident (or non-Crystal service organization) Park Facility Rental Discount 20% 20% 0.00% 20% 0.00%Recreation Other 2710.4485 Crystal Youth or Service Organization Park Facility Rental Discount 50% 50% 0.00% 50% 0.00%Facility Add-On (no discount)Recreation Other 2710.4485 Additional Sport Field Preparation - Per Hour any day 20.00$ 20.00$ 0.00% 20.00$ 0.00%Recreation Other 2710.4485 Field Attendant - per hour any day 15.00$ 20.00$ 33.33%20.00$ 0.00%Recreation Other 2710.4485 Sports Field Lights - Per Hour any day 20.00$ 20.00$ 0.00% 20.00$ 0.00%Recreation Other 2710.4485 Disc Golf Course Rental - Per Hour any day 20.00$ 20.00$ 0.00% 20.00$ 0.00%Recreation Other 2710.4485 Party Equipment Use Fee any day 20.00$ 20.00$ 0.00% 20.00$ 0.00%Recreation Other 2710.4485 Sporting Equipmentany day varies varies variesFacility Damage/Compliance Deposit (no discount)Recreation Other 2610.4470 Picnic Pavillion100.00$ 100.00$ #REF! $100 0.00%Park Special EventsRecreation Other 2610.4470 Community eventsseasonal varies varies variesVary Depending on ActivityRecreation Other 2620.4470 Special - Frolics - other seasonal variesvaries variesRecreation Other 2630.4470 Special - Frolics - softball seasonal 300.00$ 300.00$ 0.00% 300.00$ 0.00%Recreation Other 2630.4470 Special - Frolics - CoRec softball seasonal 150.00$ 150.00$ 0.00% 150.00$ 0.00%Recreation Other 2610.4470 Special Event - under 250 persons attending per event 200.00$ 200.00$ 0.00% 200.00$ 0.00%Recreation Other 2610.4470 Special Event - 251 to 500 persons attending per event 400.00$ 400.00$ 0.00% 400.00$ 0.00%Recreation Other 2610.4470 Special Event - 501 to 700 persons attending per event 700.00$ 700.00$ 0.00% 700.00$ 0.00%Recreation Other 2610.4470 Special Event - over 700 persons attending per event 1,000.00$ 1,000.00$ 0.00% 1,000.00$ 0.00%limited to capacity determined by City of CrystalRental Fee AdjustmentsRecreation Other 2610.4470 Crystal Resident (or non-Crystal service organization) Special Event Discount 20% 20% 0.00% 20% 0.00%Recreation Other 2610.4470 Crystal Youth or Service Organization Special Event Discount 50% 50% 0.00% 50% 0.00%Recreation Other Special events permit application fee, non-refundable per event 100.00$ 100.00$ 0.00% 100.00$ 0.00%$50 applied to rental if accepted100.00Recreation Other 2610.4470 Event cancellation fee - by renter per event 25% of fee 25% of fee 25% of feeNo refunds due to weather conditions25% of feeRecreation Other2610.4470 Event cancellation fee - by city per event 100% of fee 100% of fee 100% of feeFull refund of fees paid to the City, the City is not responsible for any other expenses for the event100% of feePark Damage/Compliance DepositRecreation Other 2710.4470 Damage deposit - under 250 persons attending per event 500.00$ 500.00$ 0.00% 500.00$ 0.00%Recreation Other 2710.4470 Damage deposit - 251 to 500 persons attending per event 1,000.00$ 1,000.00$ 0.00% 1,000.00$ 0.00%Recreation Other 2710.4470 Damage deposit - 501 to 700 persons attending per event 1,500.00$ 1,500.00$ 0.00% 1,500.00$ 0.00%Recreation Other 2710.4470 Damage deposit - over 700 persons attending per event 2,000.00$ 2,000.00$ 0.00% 2,000.00$ 0.00%Recreation Other 2710.4470 Excessive Clean-up/Damages to Park Property per event actual actual actualcharged to damage deposit, excess billedAdditional Special Event FeesRecreation Other 2710.4470 Food booth registration fee per event 20.00$ 20.00$ 0.00% 20.00$ 0.00%Also need Hennepin County food licenseRecreation Other 2710.4470 Vendor booth registration fee per event 20.00$ 20.00$ 0.00% 20.00$ 0.00%Recreation Other 2710.4470 Amplified sound (PA/speakers) fee per event 20.00$ 20.00$ 0.00% 20.00$ 0.00%Recreation Other 2710.4470 Misc. equipment - trash barrels/liners per event 5.00$ 5.00$ 0.00% 5.00$ 0.00%per barrelRecreation Other 2710.4470 Misc. equipment - dumpster per event actual actual actualcity rate, varies depending on yearRecreation Other 2710.4470 Misc. equipment - outdoor restrooms per event actual actual actualcity rate, varies depending on yearPool Daily AdmissionSlide/Pool Other 2722.4556 Coupon books - 10 admissions seasonal 65.00$ 65.00$ 0.00% 65.00$ 0.00%Slide/Pool Other 2722.4556 Swimming pool admission 1 day 8.00$ 8.00$ 0.00% 8.00$ 0.00%Slide/Pool Other 2722.4556 Swimming pool senior admission, age 55+6.00$ 6.00$ 0.00% 6.00$ 0.00%No senior rate for annualSlide/Pool Other 2722.4556 Swimming pool twilight admission, after 5 p.m.6.00$ 6.00$ 0.00% 6.00$ 0.00%Slide/Pool Other 2722.4556 Swimming pool admission, adult lap swim2.00$ 2.00$ 0.00% 2.00$ 0.00%free with season passPool Season Passes - Early Bird Rate (earlier - through Tuesday after Labor Day)Slide/Pool Other 2722.4562 Non-Resident Season pass - per person seasonal 38.00$ 43.00$ 13.16%43.00$ 0.00%Slide/Pool Other 2722.4562 Resident Season pass - per person ($8 discount) ($10 discount)seasonal 30.00$ 33.00$ 10.00%33.00$ 0.00%Pool Season Passes - Regular RateSlide/Pool Other 2722.4562 Non-Resident Season pass - per person seasonal 44.00$ 50.00$ 13.64%50.00$ 0.00%Slide/Pool Other 2722.4562 Resident Season pass - per person ($8 discount) ($10 discount)seasonal 36.00$ 40.00$ 11.11%40.00$ 0.00% Department Type City Code Accounting CodeDescriptionExpires 2018 Fee 2019 FeePercent Increase2020 FeePercent Increase CommentsCity of Crystal 2019-2020 Proposed Fee ScheduleMain SectionSwimming LessonsSlide/Pool Other 2722.4565 Red Cross swimming lessons - Water Tot/Parent - non-resident seasonal 53.00$ 55.00$ 3.77%55.00$ 0.00%Slide/Pool Other 2722.4565 Red Cross swimming lessons - Levels I to VII - non-resident seasonal 58.00$ 60.00$ 3.45%60.00$ 0.00%Slide/Pool Other 2722.4565 Red Cross lifeguard training - non-resident seasonal 230.00$ 230.00$ 0.00% 230.00$ 0.00%Slide/Pool Other 2722.4565 Resident Discountseasonal 7.00$ 7.00$ 0.00% 7.00$ 0.00%Special RatesSlide/Pool Other 2722.4569 Groupsseasonal 6.00$ 6.00$ 0.00% 6.00$ 0.00%per person, minimum size (15)Slide/Pool Other 2722.4569 Rentals - after hoursseasonal 85.00$ 85.00$ 0.00% 85.00$ 0.00%per hour, plus $4 per personSlide/Pool Other 2722.4569 Rentals - swim clubsseasonal 45.00$ 45.00$ 0.00% 45.00$ 0.00%per hour Department TypeAccounting CodeDescription 2018 Fee 2019 FeePercent Increase2020 FeePercent IncreaseCommentsWater Other 0505.4655 Water charge - Base Fee -$ 11.54$ 13.04$ 13.00% per 1,000 gallonsWater Other 0505.4655 Water charge per 1,000 gallons in tier 1 5.70$ 5.70$ 0.00% 6.44$ 12.98% per 1,000 gallonsWater Other 0505.4655 Water charge per 1,000 gallons in tier 2 6.30$ 6.30$ 0.00% 7.12$ 13.02% per 1,000 gallonsWater Other 0505.4655 Water charge per 1,000 gallons in tier 3 6.60$ 6.60$ 0.00% 7.46$ 13.03% per 1,000 gallonsWater Other 0505.4655 Water charge for water used for irrigation 6.30$ 6.60$ 4.76% 7.46$ 13.03% per 1,000 gallonsWater Other 0505.4656 Water charge for water used through a hydrant meter 6.30$ 6.60$ 4.76% 7.46$ 13.03% per 1,000 gallonsWater Other 0505.4655City owned water fountains will no longer be metered, but will be charged for one unit of water per year. Past experience with metered fountains showed usage of less than one unit per year.5.70$ 5.70$ 0.00% 6.44$ 12.98% per 1,000 gallonsWater Other 0505.4644 Emergency well surcharge 0.21$ 0.21$ 0.00% 0.21$ 0.00% per 1,000 gallonsResidential Tier SizesTier 1: 1,000 gallon units in tier (0 to 30 units)Tier 2: 1,000 gallon units in tier (31 to 60 units)Tier 3: 1,000 gallon units in tier (over 60 units)Commercial/Industrial/Institutional Tier SizesTier 1: 1,000 gallon units in tier (0 to 30 units)Tier 2: 1,000 gallon units in tier (31 to 60 units)Tier 3: 1,000 gallon units in tier (over 60 units)Meter SizeEquivalent Meter RatioProposedMeter FeeWater Other 0505.4655 Minnesota safe water testing fee 1.59 1.59$ 0.00% 1.59$ 0.00% per quarterWater Other 0505.4655 Water service charge for meters of 5/8 inch 4.80 5.85$ 21.88% 6.61$ 12.99% per quarter 5/8-Inch 1 5.85Water Other 0505.4655 Water service charge for meters of 3/4 inch 4.80 6.44$ 34.17% 7.27$ 12.90% per quarter 3/4-Inch 1.1 6.44Water Other 0505.4655 Water service charge for meters of 1 inch 4.80 8.19$ 70.63% 9.25$ 12.99% per quarter 1-Inch 1.4 8.19Water Other 0505.4655 Water service charge for 1 1/2 inch meters 15.30 10.53$ -31.18% 11.90$ 12.99% per quarter 1 1/2-Inch 1.8 10.53Water Other 0505.4655 Water service charge for 2 inch meters 19.15 16.97$ -11.41% 19.17$ 12.99% per quarter 2-Inch 2.9 16.97Water Other 0505.4655 Water service charge for 3 inch meters 38.30 64.35$ 68.02% 72.71$ 12.99% per quarter 3-Inch 11 64.35Water Other 0505.4655 Water service charge for 4 inch meters 76.60 81.90$ 6.92% 92.54$ 12.99% per quarter 4-Inch 14 81.90Water Other 0505.4655 Water service charge for 6 inch meters 153.20 122.85$ -19.81% 138.81$ 12.99% per quarter 6-Inch 21 122.85Water Other 0505.4655 Fire line - 2 inches 12.12 -100.00% #DIV/0! per quarterWater Other 0505.4655 Fire line - 3 inches 19.05 -100.00% #DIV/0! per quarterWater Other 0505.4655 Fire line - 4 inches 28.00 -100.00% #DIV/0! per quarterWater Other 0505.4655 Fire line - 6 inches 37.90 -100.00% #DIV/0! per quarterWater Other 0505.4655 Fire line - 8 inches 46.75 -100.00% #DIV/0! per quarterWater Other 0505.4655 Fire line - 10 inches 56.35 -100.00% #DIV/0! per quarterSewer Other 0510.4655 Sewer charge: metered (non-residential) 2.67 See Tiers See Tiers per 1,000 gallonsSewer Other 0510.4655 Sewer charge: metered (non-residential; minimum) 61.22 10.06$ -83.57% 11.26$ 11.93% per quarterSewer Other 0510.4655 Sewer charge: non-metered (non-residential; minimum) 61.22 -100.00% #DIV/0! per quarterSewer Other 0510.4655Sewer charge: non-commercial (MAC Airport - 1/2 of non-residential minimum)30.34 -100.00% #DIV/0!per quarterSewer Other 0510.4655 Sewer charge: school; minimum per classroom 19.53 -100.00% #DIV/0! per quarterSewer Other 0510.4655 Sewer charge: residential; minimum 61.22 10.06$ -83.57% 11.26$ 11.93% per quarterSewer Other 0510.4655 Sewer charge: residential; metered 61.22 See Tiers See Tiers per quarterSewer Other 0510.4695 Sewer: senior/disability discount 11.63 N/A N/A per quarterCity of Crystal 2019 - 2020 Proposed Fee ScheduleUtility Section Department TypeAccounting CodeDescription 2018 Fee 2019 FeePercent Increase2020 FeePercent IncreaseCommentsCity of Crystal 2019 - 2020 Proposed Fee ScheduleUtility SectionSewer Other 0510.4698 Sewer: senior/disability rental rebate 11.63 N/A N/A per quarterSewer Other 0510.4902 Sewer: failed sump pump inspection 100.00 100.00$ 0.00% 100.00$ 0.00% per monthSewer Other Billing volume for Sewer is based on winter months Water consumptionResidential Tier SizesTier 1: 1,000 gallon units in tier (0 to 30 units) - 4.14 4.64 12.08% per quarterTier 2: 1,000 gallon units in tier (31 to 60 units) - 5.07 5.68 12.03% per quarterTier 3: 1,000 gallon units in tier (over 60 units) - 6.00 6.72 12.00% per quarterCommercial/Industrial/Institutional Tier SizesTier 1: 1,000 gallon units in tier (0 to 30 units) 2.67 7.00 162.17% 7.84 12.00% per quarterTier 2: 1,000 gallon units in tier (31 to 60 units) 2.67 7.96 198.13% 8.88 11.56% per quarterTier 3: 1,000 gallon units in tier (over 60 units) 2.67 8.86 231.84% 9.92 11.96% per quarterStorm Other 0515.4655 Single-family residential 18.15 19.15$ 5.51% 20.15$ 5.22% per quarterStorm Other 0515.4655 Two-family residential 18.15 19.15$ 5.51% 20.15$ 5.22% per quarterStorm Other 0515.4655 Cemeteries and vacant land (per acre) 4.54 -100.00% #DIV/0! per quarterStorm Other 0515.4655 Parks and railroads (per acre) 13.62 -100.00% #DIV/0! per quarterStorm Other 0515.4655 Schools, institutional uses and airport (per acre) 22.69 -100.00% #DIV/0! per quarterStorm Other 0515.4655 Multi-family residential and churches (per acre) 54.45 -100.00% #DIV/0! per quarterStorm Other 0515.4655 Storm drainage: commercial (per acre) 435.88 -100.00% #DIV/0! per quarterStorm Other 0515.4655 Storm drainage: commercial, per Residential Equivalency Factor 90.75 -100.00% #DIV/0! per quarterStreet Lights Other 0520.4655 Street lights: commercial (per business) 5.00 5.00 0.00% 5.00 0.00% per quarterStreet Lights Other 0520.4655 Street lights: residential (single-family) 5.00 5.00 0.00% 5.00 0.00% per quarterStreet Lights Other 0520.4655 Street lights: residential (multi-family; per unit) 3.75 3.75 0.00% 3.75 0.00% per quarterRecycle Other 0525.4655 Recycling: single-family residential 10.75 10.75 0.00% 10.75 0.00% per quarterUtility Other 0505.4902 Access to property denied 120.00 125.00$ 4.17% 125.00$ 0.00% per incident; maximum of once per quarterUtility Other 0505.4955 Administrative charge for certification of delinquent utilities 35.00 35.00$ 0.00% 35.00$ 0.00%Utility Other 0505.4902 Charge for unlawful water use 150.00 150.00 0.00% 150.00 0.00% per dayUtility Other 0505.4902 Hydrant rental (other) 46.50 50.00$ 7.53% 50.00$ 0.00%Utility Other 0505.2210 Hydrant rental (meter deposit) 850.00 900.00$ 5.88% 900.00$ 0.00% deposit against water use chargesUtility Other 0505.4075 Interest rate for certification of delinquent utilities 12% 12% 0.00% 12% 0.00% per yearUtility Other 0505.4902 Maintain private fire hydrants (operate, flush and paint only) 110.00 150.00$ 36.36% 150.00$ 0.00% per year - excludes repair costsUtility Other 0505.4902 Meter testing (when meter within 2% of accurate) actual cost actual cost actual cost based on billing rate for hours workedUtility Other various.4902 Penalty for late payment 10% 10% 0.00% 10% 0.00% of amount past dueUtility Other 0505.4902 Rental property: duplicate bill to occupant 1.00 1.00 0.00% 1.00 0.00% added to each quarter billUtility Other 0505.4902 Rental property: restart duplicate bill 5.00 5.00 0.00% 5.00 0.00% once when duplicate billing is restartedUtility Other 0505.4902 Rental property: pro-rata bill when occupant changes 15.00 15.00 0.00% 15.00 0.00% once at time of billingUtility Other 0505.4902 Service fee for water shut off/turn on (for code enforcement purposes) 55.00 55.00 0.00% 55.00 0.00% per trip; shut off and turn on per hour; $55 minimumUtility Other 0505.4902 Service fee (after hour call)overtime rate; 2 hour minimumUtility Other 0505.4902 Service abandonment fee actual cost actual cost actual cost water service disconnected and pluggedUtility Other 0505.4902 Alternative service abandonment fee 6,200.00$ 8,000.00$ 29.03% 8,000.00$ 0.00% deposit for the city to disconnect service in the future, if needUtility Other 0505.4947 5/8" x 3/4" Sensuswater meter with remote radio transmitter 235.25$ 280.50$ 19.23% 308.55$ 10.00%Utility Other 0505.4947 5/8" x 3/4" Sensuswater meter without remote radio transmitter 100.00$ 138.00$ 38.00% 151.80$ 10.00% Department TypeAccounting CodeDescription 2018 Fee 2019 FeePercent Increase2020 FeePercent IncreaseCommentsCity of Crystal 2019 - 2020 Proposed Fee ScheduleUtility SectionUtility Other 0505.4947 5/8" or 3/4" Sensuswater registrar head 65.20$ 63.80$ -2.15% 70.18$ 10.00%Utility Other 0505.4947 3/4" meter horn #2 Ford for Model 25 120.00$ 120.00$ 0.00% 132.00$ 10.00%Utility Other 0505.4947 3/4" Ford Mpls. Pattern B-22-333M curb stop 102.00$ 91.00$ -10.78% 100.10$ 10.00%Utility Other 0505.4947 3/4" Mueller #H15010 w/1/8 bend corporation stop 69.39$ 74.25$ 7.00% 81.68$ 10.01%Utility Other 0505.4947 3/4" tail pieces (pair) 31.50$ 18.88$ -40.06% 20.77$ 10.01%Utility Other 0505.4947 1" Sensus fire line meter, no remote radio transmitter 211.76$ 214.50$ 1.29% 235.95$ 10.00%Utility Other 0505.4947 1" Sensus water meter with remote, also for lawn sprinkler meter 337.00$ 358.00$ 6.23% 393.80$ 10.00%Utility Other 0505.4947 1" meter horn #4 Ford for Model 40 160.00$ 160.00$ 0.00% 176.00$ 10.00%Utility Other 0505.49471" tail pieces (pair)48.00$ 29.00$ -39.58% 31.90$ 10.00%Utility Other 0505.4947 1" curb box, Mpls pattern #5614A, tap 1½" at btm curb box 48.00$ 47.00$ -2.08% 51.70$ 10.00%Utility Other 0505.4947 1" curb box, Mpls pattern #5615, tapped 2" at btm curb box 48.00$ 47.00$ -2.08% 51.70$ 10.00%Utility Other 0505.4947 1" Ford Mpls Pattern, #B22-444 m curb stop 131.00$ 123.00$ -6.11% 135.30$ 10.00%Utility Other 0505.4947 1" Mueller #15010, with 1/8 bend corp stop 144.50$ 105.71$ -26.84% 116.28$ 10.00%Utility Other 0505.4947 1 ½" Sensus water meter with remote radio trans 13" LL w/conn. 1,600.00$ 594.00$ -62.88% 653.40$ 10.00%Utility Other 0505.4947 1 ½" Sensus irrigation meter with remote & LL w/conn. 773.30$ 850.63$ 10.00% New itemUtility Other 0505.4947 1 ½" meter flanges (pair) 55.00$ 33.00$ -40.00% 36.30$ 10.00%Utility Other 0505.4947 1 ½" Mueller with 1/8 bend corp stop #15010 274.00$ 283.00$ 3.28% 311.30$ 10.00%Utility Other 0505.4947 1 ½" curb stop 248.00$ 289.00$ 16.53% 317.90$ 10.00%Utility Other 0505.4947 2" Sensus, compound, with remote 17" LL w/conn. 1,800.00$ 1,628.00$ -9.56% 1,790.80$ 10.00%Utility Other 0505.4947 2" meter flanges (pair) 64.00$ 33.00$ -48.44% 36.30$ 10.00%Utility Other 0505.4947 2" Sensus turbo with remote radio transmitter, 10" LL w/conn. 1,300.00$ 1,320.00$ 1.54% 1,452.00$ 10.00%Utility Other 0505.4947 2" Sensus Irrigation meter with remote, w/connections 1,015.30$ 1,116.83$ 10.00% New itemUtility Other 0505.4947 2" curb stop 330.00$ 468.00$ 41.82% 514.80$ 10.00%Utility Other 0505.4947 2" Mueller 1/8 bend only 120.00$ 196.00$ 63.33% 215.60$ 10.00%Utility Other 0505.4947 2" Mueller with 1/8 bend corp stop #15010 450.00$ 456.00$ 1.33% 501.60$ 10.00%Utility Other 0505.4947 2" Mueller #15201 curb stop replaced w/15154 or Ford B22-777 333.85$ 468.16$ 40.23% 514.98$ 10.00%Utility Other 0505.4947 3" Sensus Compound, remote with remote radio/connection 2,032.00$ 2,255.00$ 10.97% 2,480.50$ 10.00%Utility Other 0505.4947 3" Sensus turbo with remote radio trans, 12" LL w/connection 2,032.00$ 1,634.00$ -19.59% 1,797.40$ 10.00%Utility Other 0505.4947 4" Sensus compound, with remote radio trans w/connection 3,365.25$ 3,779.60$ 12.31% 4,157.56$ 10.00%Utility Other 0505.4947 4" Sensus turbo, with remote radio trans w/connection 2,865.25$ 3,020.50$ 5.42% 3,322.55$ 10.00%Utility Other 0505.4947 4" meter connection 148.00$ 66.00$ -55.41% 72.60$ 10.00% pairUtility Other 0505.4947 Curb box lid, slip-on type Western Style 2" 36.00$ 29.00$ -19.44% 31.90$ 10.00%Utility Other 0505.4947 Curb box lid, #5627 for 2" screw on 36.00$ 19.00$ -47.22% 20.90$ 10.00%Utility Other 0505.4947 Remote lead in wire (per foot) 0.25$ 0.25$ 0.00% 0.25$ 0.00% per footUtility Other 0505.4947 Remote lead in wire (per 1,000 feet) 273.88$ 200.00$ -26.98% 220.00$ 10.00%Utility Other 0505.4947 Remote lead in wire (per 500 feet) 136.94$ 100.00$ -26.98% 110.00$ 10.00%Utility Other 0505.4947 Remote radio transmitters for Sensus meters 134.09$ 143.00$ 6.64% 157.30$ 10.00% CITY OF CRYSTAL, MINNESOTA LONG TERM PLAN Prepared on October 3, 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 Drainage 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 October 3, 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 October 3, 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% Water and Sanitary Sewer Funds Based on Utility Rate Analysis Storm Drainage 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 Drainage Fund 515 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 Drainage 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 $8.6 million (2019 proposed) to $10.5 million over the duration of this Plan based on the anticipated debt issuance for the police facility along with other capital levy needs. The levy increase will result in an increase in the projected tax rate, ranging from 48.1 percent (2019 proposed) to 51.1 percent throughout the life of this Plan. A decrease in the tax levy or applicable tax rate is not anticipated, given the capital needs outlined in our report. 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 $1,070 over the duration of this Plan. A decrease in the tax levy or applicable tax rate is not anticipated, given the capital needs outlined in our report. • Total debt outstanding is projected to decrease from $15.9 million (2016 actual) to $14.3 million over the duration of this Plan. The decrease includes anticipated debt issuance for the police department expansion in 2020 at an estimated $6 million dollars. As a result, the debt per capita will fall from an estimated $696 (2016 actual) per household to an estimated $607 over the duration of this Plan. • The total cash position of the City is projected to decrease from $41.4 million (2016 actual) to $32.7 million over the duration of this Plan. Several funds were not analyzed for the purposes of this report and include a 1 percent interest rate earnings assumption the cash balance. These funds include: TIF Districts, Special Projects, Cable TV Equipment, Recycling, Self Insurance and Hennepin Recycling Group. The actual cash results for the years 2018 - 2023 will vary from the results estimated in this report. 7 FINANCIAL SECTION CITY OF CRYSTAL, MINNESOTA LONG TERM PLAN 8 City of Crystal, Minnesota Schedule of Property Taxes Levied and Tax Rates For the Years Ended December 31, 2017 and 2018 (Actual) and 2019 to 2023 (Estimated) 2017 2018 2019 2020 2021 2022 2023 Actual Actual Estimated Estimated Estimated Estimated Estimated Amounts Amounts Amounts Amounts Amounts Amounts Amounts Property Taxes Levied for General Purposes 100 General 8,657,000$ 9,436,779$ 9,716,249$ 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 11,343,132 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 - - - - - - 3XX/408 2020 Facility Bonds (Potential future levy)- - - - - - - Subtotal 212,000 - - - - - - Total Taxes Levied 10,287,820 10,905,089 11,343,132 12,032,929 12,486,394 12,949,729 13,425,782 Less: Value of Market Value Levies (489,200) - - - - - - Less: Distribution from fiscal disparities (2,267,618) (2,186,657) (2,251,066) (2,363,619) (2,481,800) (2,605,890) (2,736,185) City Net Levy 7,531,002$ 8,718,432$ 9,092,066$ 9,669,309$ 10,004,594$ 10,343,839$ 10,689,597$ Tax Capacity Personal and Real Estate 16,716,393$ 18,459,975$ 19,577,862$ 20,556,755$ 21,584,593$ 22,663,822$ 23,797,014$ Other assumed net growth factors - - - - - - - Less: Contribution to fiscal disparities (1,082,015) (1,079,088) (1,216,174) (1,276,983) (1,340,832) (1,407,873) (1,478,267) 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$ 18,149,089$ 19,067,173$ 20,031,162$ 21,043,350$ 22,106,148$ 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%45.09%44.01%44.33%43.32%42.32%41.35% Capital levies 5.58%5.69%6.09%6.38%6.63%6.83%7.01% Scheduled debt levies 1.04%0.00%0.00%0.00%0.00%0.00%0.00% Total City Levy Tax Rate 48.949%50.782%50.097%50.712%49.945%49.155%48.356% Total EDA Tax Rate 1.385%1.274%1.244%1.219%1.195%1.171%1.147% Population 22,855 22,967 23,080 23,193 23,307 23,307 23,421 Taxes per Capita 450$ 475$ 491$ 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)703 818 884 949 990 1,033 1,075 % change from prior year $'s N/A 16%8%7%4%9%9% Tax Levy ($) General 8,657,000$ 9,436,779$ 9,716,249$ 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%10%11%12%12%13% Economic Development Authority 3%3%2%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$ 7,429,824$ 7,429,823$ 7,429,822$ 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 7,413,645 6,477,926 5,623,305 4,807,006 3,731,066 2,614,478 409 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 12,200,137 10,285,331 9,254,035 8,369,699 7,332,412 6,321,151 Total - Governmental-type Funds 35,113,400 37,145,550 29,988,128 27,008,363 25,867,432 24,871,559 23,725,640 22,633,795 Internal Service 620 Information Technology - - 243,971 99,943 (61,393) (201,568) (315,284) (434,254) 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 - - 2,286,993 1,695,903 1,112,758 735,648 253,641 (161,304) *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 6,278,933 6,174,421 6,129,568 6,510,358 6,992,881 7,388,429 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$ 883,683$ 713,529$ 544,773$ 674,455$ 1,185,656$ 1,769,805$ 510 Sewer 2,312,443 2,121,076 2,000,385 1,605,700 1,339,647 1,367,415 1,316,558 1,569,656 515 Storm Drainage 379,568 787,914 1,384,970 592,250 1,198,320 1,092,958 1,220,675 1,655,509 520 Street Lights 387,731 488,501 586,061 633,156 693,242 746,131 791,364 (171,548) *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 4,976,320 3,667,068 3,899,639 4,005,854 4,640,396 4,950,828 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$ 42,656,912$ 38,277,518$ 37,338,582$ 36,844,134$ 36,829,842$ 36,458,688$ *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 225,000 - 225,000 - - - - 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$ 890,000$ 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 74,136 64,779 56,233 48,070 37,311 Franchise fees - - - - - - Miscellaneous - - - - - - Total Revenues 241,063 184,280 181,729 177,861 174,563 168,864 Expenditures Capital outlay Public works 343,747 890,000 806,350 764,161 1,020,503 1,055,452 Total Expenditures 343,747 890,000 806,350 764,161 1,020,503 1,055,452 Excess (Deficiency) of Revenues Over (Under) Expenditures (102,684) (705,720) (624,621) (586,299) (845,940) (886,588) Other Financing Sources Transfers in - - - - - - Intergovernmental revenue (Municipal State Aid - MSA)(230,000) (230,000) (230,000) (230,000) (230,000) (230,000) Bond proceeds - - - - - - Sale of Fixed Asset - - - - - - Total Other Financing Sources (230,000) (230,000) (230,000) (230,000) (230,000) (230,000) Net Change in Fund Balances (332,684) (935,720) (854,621) (816,299) (1,075,940) (1,116,588) Fund Balances, January 1 7,746,329 7,413,645 6,477,926 5,623,305 4,807,006 3,731,066 Fund Balances, December 31 7,413,645$ 6,477,926$ 5,623,305$ 4,807,006$ 3,731,066$ 2,614,478$ 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 (90,000) (46,640) (46,640) (46,640) (46,640) (46,640) Proceeds from bonds and notes issued - - - - - - Net Cash Used by Capital and Related Financing Activities (556,000) (699,640) (686,640) (475,640) (577,640) (506,640) Cash Flows from Investing Activities Investment earnings - 22,870 16,959 11,128 7,356 2,536 Net Increase (Decrease) in Cash and Cash Equivalents 2,286,993 (591,090) (583,144) (377,110) (482,007) (414,945) Cash and Cash Equivalents, January 1 - 2,286,993 1,695,903 1,112,758 735,648 253,641 Cash and Cash Equivalents, December 31 2,286,993$ 1,695,903$ 1,112,758$ 735,648$ 253,641$ (161,304)$ 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 2022 Robbinsdale SD - Potential Replacement 18,833 - - - - 18,833 - Information Technology 2022 Computer Hardware & Software 62,500 - - - - 62,500 - Information Technology 2022 City Hall Switch - 24 Port | LOGIS 4,703 - - - - 4,703 - Information Technology 2022 WiFi AP - PD External 3,693 - - - - 3,693 - 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$ 118,551$ 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) (118,551) (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) (118,551) (119,611) Cash Flows from Investing Activities Investment earnings - 2,440 999 (614) (2,016) (3,153) Net Increase (Decrease) in Cash and Cash Equivalents 243,971 (144,027) (161,337) (140,175) (113,716) (118,970) Cash and Cash Equivalents, January 1 - 243,971 99,943 (61,393) (201,568) (315,284) Cash and Cash Equivalents, December 31 243,971$ 99,943$ (61,393)$ (201,568)$ (315,284)$ (434,254)$ 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 100,000 - 100,000 - - - - Water 2019 6205 - Water Utility Replace #432 - 2008 Ford F150 50,000 - 50,000 - - - - Water 2019 Equipment Replacement 50,000 - 50,000 - - - - 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 Water 2023 6237- water utility Replace #434 - 1996 Air Compressor 30,000 - - - - - 30,000 Water 2023 Equipment Replacement 60,000 - - - - - 60,000 50,000$ 275,000$ 630,000$ 675,000$ 600,000$ 765,000$ 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 (based on utility rate analysis)3,387,468$ 3,631,212$ 4,114,447$ 4,579,442$ 5,005,116$ 5,369,944$ Payments to suppliers (based on utility rate analysis)(2,788,377) (2,872,029) (2,958,190) (3,046,935) (3,138,343) (3,232,494) Payments to employees (based on utility rate analysis)(377,973) (396,872) (416,715) (437,551) (459,429) (482,400) Net Cash Provided (Used) by Operating Activities 221,118 362,311 739,542 1,094,956 1,407,344 1,655,050 Cash Flows from Noncapital Financing Activities Transfers to other funds (181,604) (190,684) (200,218) (210,229) (220,741) (231,778) Net Cash Provided (Used) by Noncapital Financing Activities (181,604) (190,684) (200,218) (210,229) (220,741) (231,778) Cash Flows from Capital and Related Financing Activities Acquisition of capital assets (50,000) (283,250) (648,900) (695,250) (618,000) (787,950) Intergovernmental (Joint Water Commission)- - - - - - Principal and interest on debt (8,400) (7,368) (6,315) (5,242) (4,147) (3,029) 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) (350,618) (715,215) (760,492) (682,147) (850,979) Cash Flows from Investing Activities Investment earnings 9,530 8,837 7,135 5,448 6,745 11,857 Net Increase (Decrease) in Cash and Cash Equivalents (69,356) (170,154) (168,756) 129,683 511,200 584,150 Cash and Cash Equivalents, January 1 953,039 883,683 713,529 544,773 674,455 1,185,656 Cash and Cash Equivalents, December 31 883,683$ 713,529$ 544,773$ 674,455$ 1,185,656$ 1,769,805$ 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 2020 Equipment Replacement 40,000 - - 40,000 - - - 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 2022 20 Kw portable generator with light tower (replace existing 20,000 - - - - 20,000 - Sewer 2022 Equipment Replacement 220,000 - - - - 220,000 - Sewer 2023 6504 - Sanitary Sewer Replacement (lining, dig up)600,000 - - - - - 600,000 Sewer 2023 Equipment Replacement 60,000 - - - - - 60,000 395,000$ 600,000$ 690,000$ 600,000$ 840,000$ 660,000$ City of Crystal, Minnesota Capital Improvement Plan - Sanitary 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 (based on utility rate analysis)2,431,000$ 2,497,838$ 2,805,211$ 3,094,129$ 3,350,727$ 3,561,382$ Payments to suppliers (based on utility rate analysis)(1,703,988) (1,742,193) (1,794,459) (1,848,293) (1,903,742) (1,960,854) Payments to employees (based on utility rate analysis)(376,509)$ (395,334)$ (415,101)$ (435,856)$ (457,649)$ (480,531)$ Net Cash Provided (Used) by Operating Activities 350,503 360,310 595,651 809,980 989,336 1,119,997 Cash Flows from Noncapital Financing Activities Transfers to other funds (181,604) (190,684) (200,218) (210,229) (220,741) (231,778) Net Cash Provided (Used) by Noncapital Financing Activities (181,604) (190,684) (200,218) (210,229) (220,741) (231,778) Cash Flows from Capital and Related Financing Activities Acquisition of capital assets (395,000) (618,000) (710,700) (618,000) (865,200) (679,800) Advances to/(from) other funds 30,000 30,000 30,000 30,000 30,000 30,000 Grants and contributions 50,000 - - - - - Net Cash Provided (Used) by Capital and Related Financing Activities (315,000) (588,000) (680,700) (588,000) (835,200) (649,800) Cash Flows from Investing Activities Investment earnings 25,411 23,688 19,214 16,017 15,748 14,680 Net Increase (Decrease) in Cash and Cash Equivalents (120,691) (394,686) (266,053) 27,768 (50,857) 253,099 Cash and Cash Equivalents, January 1 2,121,076 2,000,385 1,605,700 1,339,647 1,367,415 1,316,558 Cash and Cash Equivalents, December 31 2,000,385$ 1,605,700$ 1,339,647$ 1,367,415$ 1,316,558$ 1,569,656$ Statement of Cash Flows Enterprise Fund Projected Activity City of Crystal, Minnesota Capital Improvement Plan - Sanitary 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 Storm water 2023 Equipment Replacement 30,000 - - - - - 30,000 1,000,000$ 2,750,000$ 50,000$ 800,000$ 650,000$ 1,580,000$ (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 $400K in other potential grant opportunities. City of Crystal, Minnesota Capital Improvement Plan - Storm Drainage Fund 515 Schedule of Planned Capital Outlay 2018 to 2023 32 2018 2019 2020 2021 2022 2023 Estimated Estimated Estimated Estimated Estimated Estimated Cash Flows from Operating Activities Receipts from customers and users (5% growth assumption)1,095,142$ 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) (1,580,000) 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) (330,000) 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) 127,717 434,834 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$ 1,655,509$ Capital Improvement Plan - Storm Drainage 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$ 204,688$ 204,688$ 204,688$ 204,688$ 204,688$ 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 69,451 62,689 55,589 48,134 40,307 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 6,332 6,932 7,461 7,914 Net Increase (Decrease) in Cash and Cash Equivalents 97,560 47,095 60,086 52,890 45,232 (962,911) Cash and Cash Equivalents, January 1 488,501 586,061 633,156 693,242 746,131 791,364 Cash and Cash Equivalents, December 31 586,061$ 633,156$ 693,242$ 746,131$ 791,364$ (171,548)$ Enterprise Fund Projected Activity Statement of Cash Flows 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 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 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) Debt service Economic Development Authority Capital General - 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 $20,000,000 2016 2017 2018 2019 2020 2021 2022 2023 Projected Debt Balances Based on Current Amortizations and New Debt Assumed in CIP 2017 (Actual) and 2018 -2023 (Estimated) G.O. Aquatic Center Bonds G.O. Improvement G.O. Street Reconstruction 0 500 1000 1500 2000 2500 3000 3500 4000 4500 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 Debt Per Capita -Comparison Cities 2012 -2017 (Actual) 2018 -2022 (Estimated) New Hope Golden ValleyHopkinsBrooklyn CenterCrystal 36 A ppendix A 37 City of Crystal, Minnesota Schedule of Property Taxes Levied and Tax Rates For the Years Ended December 31, 2017 and 2018 (Actual) and 2019 to 2023 (Estimated) Alternative A 2017 2018 2019 2020 2021 2022 2023 Actual Actual Estimated Estimated Estimated Estimated Estimated Amounts Amounts Amounts Amounts Amounts Amounts Amounts Property Taxes Levied for General Purposes 100 General 8,657,000$ 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 - - - City of Crystal, Minnesota Capital Improvement Plan - Building Fund 408/625 Schedule of Planned Capital Outlay 2018 to 2023 Alternative A 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$ City of Crystal, Minnesota Capital Improvement Plan - Building Fund 408/625 Schedule of Planned Capital Outlay 2018 to 2023 (Continued) 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 OCTOBER 3, 2018 Prepared by AEM Financial Solutions, LLC. City of Crystal, Minnesota Financial Management Plan Table of Contents Page No. Introductory Section Executive Summary 4 P olicy 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 Electronic Payments 40 Fund Balance 42 Interfund Loan 45 Investment 47 Post -issuance Compliance Procedures 58 Exhibit A 61 Exhibit B 62 Exhibit C 65 Revenue 68 Risk Management 70 Tax Abatement 72 Tax Increment Financing 76 2 INTRODUCTORY SECTION CITY OF CRYSTAL, MINNESOTA FINANCIAL MANAGEMENT PLAN OCTOBER 3, 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 - October 3, 2018 4 POLICY SECTION CITY OF CRYSTAL, MINNESOTA FINANCIAL MANAGEMENT PLAN OCTOBER 3, 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 Auditor Independence 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 Polic y) 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, i f 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 Cit y/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 it’s 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 applic ation 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 nex t 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 maintenanc e 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. Respons ible 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 mak es 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 k inds 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. 34 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 instructi ons 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 charter 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 exc ess of the contract cost be made until such approval has been obtained. 35 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. 36 Debt Management 37 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. 38 Electronic Payments 39 City of Crystal, Minnesota Financial Management Plan Electronic Payments Policy General Electronic payments are financial transactions that are often initiated through the use of computer terminals, online banking automated phone systems or other methods of electronic funds transfer in effort to reduce cost and improve security and efficiency. Use of the electronic payments will: • Eliminate the storage, handling, and processing of paper checks. • Reduce the time spent on reconciliation. • Eliminate the occurrence of lost or stolen checks and the cost of check reissuance. • Reduce security risks, including reducing the visibility of information used in check payment fraud. • Improve the tracking of payments through enterprise resource planning (ERP) systems and integration with banking technologies. Definitions Automated clearing house (ACH) - movement of funds in a batch process, which is best for high volume, low dollar transactions such as payroll, expense reimbursement, and routine vendor payments, as the cost per transaction is low relative to other forms of electronic payment. Wire transfer - immediate movement of funds between bank accounts with guaranteed settlement, which is most suitable for high dollar transactions because the cost per transaction is high relative to other forms of electronic payment. Purchasing (procurement or PCard) cards - a credit card transaction designed to reduce the volume of local “house” accounts, purchase orders issued or to eliminate petty cash. Purchasing cards are used at the point of sale, which is convenient for the customer, and payments are made in aggregate. Vendors that accept the payment will pay a processing fee. There is usually no cost to the government, and the issuing bank usually provides a rebate based on transaction volume. Electronic accounts payable - a credit card transaction, often without physical cards, that allows governments to pay invoices electronically. These transactions are similar to purchasing cards but occur after the point of sale and thus do not provide the processing benefits of purchasing cards. As with purchasing cards, the vendor pays a processing fee, and the government usually receives a rebate. Stored value cards - generally used for payroll to unbanked employees or for rebate/incentive programs. The card is tied to a bank account and is loaded via an ACH transaction. There are costs associated with activation and use of the card. Policy The City will ensure that the use of electronic fund transfers and receipts are initiated, executed and approved in a secure manner. Payments issued by accounts payable are made by Automated Clearing House by means of Electronic Funds Transfers (EFT). All EFT payments will be coordinated and submitted through the Finance department. The Finance Director will approve all new, and changes to, electronic funds transfer requests, ensuring the payment via wire is necessary, all required documentation is provided and appropriately approved, and the request and banking account information is accurate and valid. 40 Fund Balance 41 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. 42 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 funds to assist with capital needs. 43 Interfund Loan 44 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 Servic e 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. 45 Investment 46 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. 47 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. 48 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 res ponsibility 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 responsi ble 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. 49 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. 50 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 mort gage 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. 51 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. 52 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 53 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. 54 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. 55 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. 56 Post -issuance Compliance Procedures 57 City of Crystal, Minnesota Financial Management Plan Post-issuance Tax Compliance Procedures for Tax-Exempt Bonds Adopt ed 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 it s 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-fi nanced 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 am ounts, 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 Certific ate 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. 58 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-financ ed 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, management 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. S uch 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 s ummarized 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. 59 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 t o 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. 60 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. 61 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 substantially 3; (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. 62 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 options 5 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 Th e 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). 63 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 reas onable 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. 64 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 i n 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 65 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. 66 Revenue 67 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 direct Local Government Aid allotments that exceed the prior year towards capital needs. In doing this, it is the objective of the City to utilize as much Local Government Aid towards capital projects and minimize, to the extent possible, use of Local Government Aid for operational expenditures. 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. 68 Risk Management 69 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. 70 Tax Abatement 71 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 t ax 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) 72 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. 73 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 t hat 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 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) 74 Tax Increment Financing 75 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 busines ses. 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 76 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 77 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. 78 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 79