2018.11.08 Work Session Packet (2nd)
4141 Douglas Drive North • Crystal, Minnesota 55422-1696
Tel: (763) 531-1000 • Fax: (763) 531-1188 • www.crystalmn.gov
Posted: Nov. 2, 2018
City Council
Second Work Session Agenda
Thursday, Nov. 8, 2018
Immediately following the City Council meeting
Conference Room A
Pursuant to due call and notice given in the manner prescribed by Section 3.01 of the City Charter,
the second work session of the Crystal City Council was held at ______ p.m. on November 8, 2018 in
Conference Room A, 4141 Douglas Dr. N., Crystal, Minnesota.
I. Attendance
Council Members Staff
____ Deshler ____ Norris
____ Kolb ____ Therres
____ LaRoche ____ Gilchrist
____ Parsons ____ Revering
____ Adams ____ Elholm
____ Budziszewski ____ Ray
____ Dahl
II. Agenda
The purpose of the work session is to discuss the following agenda items:
1. 2019 – 2020 Budget review.
2. Constituent issues.
3. New business.*
4. Announcements.*
* Denotes no supporting information included in the packet.
III. Adjournment
The work session adjourned at ______ p.m.
Auxiliary aids are available upon request to individuals with disabilities by calling the City Clerk at (763) 531-
1145 at least 96 hours in advance. TTY users may call Minnesota Relay at 711 or 1-800-627-3529.
Sept. 4, 2018
Two-year budget to focus on long term
planning and capital needs.
Reorganize capital funds.
●Street Fund (combined street construction and street
maintenance funds).
●Parks Capital Fund (parks and park improvements).
●Building Fund (includes all city buildings and pool.
●Fleet Fund
●IT Fund (operations and capital).
First step in long term capital plan.
Internal
Service
Funds
Long term planning for major capital
expenditures.
●Reinvesting in parks to keep neighborhoods strong.
●Keeping business area vibrant (Becker Park Improvements).
●Police department needs.
Works in progress.
●Detailed work on capital funds.
●Updated financial policies including fund balance/emergency
fund policy.
Change 2019 2020
Wages and benefits increase
Workers compensation insurance increase
Elections (including presidential primary –3 total)
Additional police officer
Additional funding (1% each year) ─ Park Capital Fund
Increase for WMFRD (no change in service levels)
Inflationary increase in levy contribution to Capital Funds
Loss of COPS grant (federal funds)
*This includes 100% of 2nd year funding.
Category 2016
Actual
2017
Actual
2018
Budget
2019
Proposed
2020
Proposed
Taxes: Property &
Assessments
$8,004,393 $8,709,286 $ 9,489,779 $9,716,249 $10,341,584
Special Assessments 95,653 59,331 114,000 70,500 70,500
Intergovernmental
Revenue
2,008,524 2,003,243 1,868,789 1,912,339 1,777,339
Licenses & Permits 773,479 785,452 844,228 837,610 855,310
Charges for Services 793,092 758,967 831,551 818,859 864,902
Investment Income 75,154 34,575 68,000 68,000 68,000
Fines & Forfeits 322,009 327,096 304,000 292,000 307,000
Interfund Transfers
and Transfers In
343,286 445,475 444,449 458,860 474,258
Miscellaneous 58,796 46,688 72,280 68,028 69,000
TOTAL $12,474,383 $13,170,113 $14,037,076 $14,242,445 $14,827,893
Change $205,369
1.46%
$585,476
4.11%
Major General Fund Revenue Changes Total Cost per capita*
Projected Property Tax Increase $144,470 $6.32
Reallocation of State Aid Revenue $61,000 $2.67
Special Assessments -$43,500 -$1.90
Police/Fire Pension Aid $44,000 $1.93
Pawn Shop Transaction Fees -$42,000 -$1.84
Recreation $4,085 $.18
Community Center $13,300 $.58
Miscellaneous $9,603 $.42
Administrative and Other Transfers $14,411 $.63
Total $205,369 $8.98
*Per capital costs based on the Metropolitan Council’s estimated population of
22,855 for the City of Crystal in 2016.
Category 2016
Actual
2017
Budget
2018
Proposed
2019
Proposed
2020
Proposed
City Council, Admin.,
Elections, Legal, Finance
$2,315,220 $2,388,515 $2,291,364 $2,055,507 $2,146,913
Police 4,829,962 5,184,703 5,629,175 5,918,569 6,164,559
Fire 1,239,663 1,320,108 1,360,507 1,445,107 1,508,437
Community Development 523,035 543,950 571,191 647,469 689,370
Streets, Parks, Buildings,
Forestry, Engineering
2,257,257 2,356,329 2,590,741 2,503,105 2,578,410
Recreation 1,448,395 1,534,643 1,594,098 1,672,688 1,740,204
Transfers out -3,186 ---
Total $12,613,532 $13,331,434 $14,037,076 $14,242,445 $14,827,893
Change $205,369
1.46%
$585,448
4.11%
Major Expenditure Changes Total Cost per capita*
Wages and Benefits $346,088 $15.93
Elections $12,500 $.55
Administration -Website Completion -$35,000 -$1.53
Administration -Service Contracts -$32,500 -$1.42
Legal Services -$27,000 -$1.18
IT Reallocation Costs -$85,000 -$3.72
West Metro Fire District $62,600 $2.74
Police and Fire Pension $44,000 $1.93
Street Maintenance -Salt $15,000 $.66
Recreation $26,964 $1.18
City Building Reallocation -$188,377 -$8.24
Miscellaneous Increases $66,112 $2.89
Total $205,369 $8.99
*Per capital costs based on the Metropolitan Council’s estimated
population of 22, 855 for the City of Crystal in 2016.
*Per capital costs based on the Metropolitan Council’s estimated population of
22,855 for the City of Crystal in 2016.
Major Revenue Changes Total Cost per capita*
Projected Property Tax $625,335 $27.45
COPS Grant -$120,000 -$5.25
DEED Grant for Cadets -$20,000 -$.88
Building and Electrical Permits $17,000 $.74
Police/Fire Pension Aid $5,000 $.23
Fines $15,000 $.66
Recreation $27,300 $1.19
Community Center $6,100 $.27
Pool $8,700 $.38
Misc. and Administrative Transfers $21,041 $.92
Total $585,476 $25.62
Major Expenditure Changes Total Cost per capita*
Wage and Benefits $410,645 $17.97
Elections Staffing $114,475 $5.01
Professional Services -Finance -$25,000 -$1.09
Administration –Service Contracts -$10,000 -$.44
Legal-Completion of Code Updates $15,000 -$.66
West Metro Fire District $60,313 $2.64
Miscellaneous Increases $50,015 $2.59
Total $585,448 $25.62
*Per capital costs based on the Metropolitan Council’s estimated population of
22,855 for the City of Crystal in 2016.
Fund 2016
Actual
2017
Actual
2018
Levied
2019
Proposed
2020
Proposed
General Fund $8,571,947 $8,657,000 $9,436,779 $9,716,249 $10,266,584
Pool Bonds Debt
Service
210,600 212,000 ---
EDA 246,200 277,200 277,200 282,744 288,399
Capital
Improvement Funds
1,119,160 1,141,620 1,191,110 1,344,139 1,477,946
Total Tax Levy $9,937,307 $10,075,820 $10,905,089 $11,343,139 $12,032,928
Change $438,043
4.02%
$695,859
6.13%
Fund 2016 2017 2018
Levied
2019
Proposed
2020
Proposed
Buildings $563,153 $ 574,400 $574,400 $585,888 $597,606
Fleet ---85,680 86,537
Information Technology ---159,179 158,037
Police Equipment Revolving 134,700 137,400 151,900 154,938 158,037
Park Improvement ---$248,310 $358,914
PIR 261,000 266,220 301,210 --
Street Construction 160,307 163,600 163,600 110,144 116,950
Total Capital Improvement
Levy
$1,119,160 $1,141,620 $1,191,110 $1,344,139 $1,477,946
Internal
Service
Funds
Payable 2016 Payable 2017 Payable 2018 Payable 2019 Payable 2020
Tax Capacity $15,250,280 $16,716,693 $18,459,975 $19,577,862 **$20,556,755
TIF Captured Value (325,706)(248,944)(212,599)*(212,599)*(212,599)
Area-wide Contribution (1,088,334)(1,082,015)(1,079,088)(1,216,174)(1,216,174)
Area-wide Distribution 3,999,304 4,375,023 4,467,214 4,578,315 4,467,214
Net Tax Capacity $17,835,544 $19,760,757 $21,635,502 $22,727,404 $23,595,196
Certified Levy 9,099,500 9,798,620 10,627,889 11,060,388 11,744,529
EDA Levy 246,200 277,200 277,200 282,744 288,399
Local Levy $9,345,700 $10,075,820 $10,910,633 $11,343,132 $12,032,928
* Estimates for the 2019 Captured Tax Capacity from Tax Increment Finance Districts have not yet been received. The prior
year, TIF Captured Value was used to calculate the estimated 2019 tax rate.
** Estimated at 5% increase over 2019.
2016 2017 2018 Payable 2019 Payable 2019
City Tax Rate 51.83%50.36%50.42%49.91%51.00%
County Tax Rate 45.36 44.09 42.81 42.81 42.81
School Tax Rate 33.83 31.61 31.96 31.96 31.96
Other Tax Rate 10.43 10.21 9.05 9.05 9.05
Total Tax Rate 141.45%136.27%134.23%133.73%134.82%
2018
Market Value
of a Home
Taxable
Market
Value
2018
Actual
2019
Estimated
$
Increase
%
Increase
$158,760 $135,800 $685 $708 $23 3%
$176,400 $155,000 $781 $808 $26 3%
$196,000 $176,400 $889 $919 $30 3%
$235,200 $219,100 $1,105 $1,142 $37 3%
$282,240 $270,400 $1,363 $1,409 $46 3%
Based upon proposed increase in the city tax levy.
. Tax impacts may change slightly as more information
becomes available
Sept. 4 Adopt preliminary 2019-2020 operating budgets and 2019
preliminary tax levy.
Sept.17 Work session to review utility rates and long-term plan
Oct. 16 Adopt 2019 fee schedule and utility rates.
Oct.16 Opportunity for public input.
Dec. 4 Review and adopt final 2019 property tax levy and
2019-2020 budget.