2019.02.05 Work Session Packet (2nd)
4141 Douglas Drive North • Crystal, Minnesota 55422-1696
Tel: (763) 531-1000 • Fax: (763) 531-1188 • www.crystalmn.gov
Posted: Feb. 1, 2019
City Council
Second Work Session Agenda
Feb. 5, 2019
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 Feb. 5, 2019 in
Conference Room A, 4141 Douglas Dr. N., Crystal, Minnesota.
I. Attendance
Council Members Staff
____ Budziszewski ____ Norris
____ Deshler ____ Therres
____ Kiser ____ Gilchrist
____ LaRoche ____ Revering
____ Parsons ____ McGann
____ Adams ____ Serres
____ Banks ____ Ray
II. Agenda
The purpose of the work session is to discuss the following agenda items:
1. MPCA 0% loan for storm water project at Becker Park.
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.
Memorandum
DATE: February 5, 2019
TO: City Council
FROM: Mark Ray, PE, Director of Public Works
SUBJECT: MPCA Loan Discussion
Background
As part of the funding package for the Becker Park storm water project, the City submitted an
application to the Minnesota Pollution Control Agency (MPCA) for a $1,250,000 ten year, 0% interest
loan. The intent of this loan application was to provide a funding mechanism for the City’s portion of the
project cost and improve cash flow.
Cost
Total anticipated project cost $2,062,066.50 (not including contingency)
• Professional Services (Wenck) $308,500.00
• Construction (Contract) $1,753,566.50
Funding
Secured ($1,475,000 or 72% of project cost):
• Minnesota Board of Water and Soil Resources, Clean Water Fund Projects and Practices $725,000
• Shingle Creek Watershed CIP $250,000
• Metropolitan Council Green Infrastructure Pilot Program Grant $200,000
• 2017 Metropolitan Council Storm Water Grant Program $150,000
• Shingle Creek Watershed Public Cost-Share Program (2018) $50,000
• Hennepin County Natural Resources Opportunity Grant $100,000 (pending Commission
Approval)
Proposed
• MPCA Loan is up to $1,250,000 (current anticipated City portion of the cost is $587,066.50)
o Contingency items would be in addition to the City portion and covered by loan
Attachment
• Storm water utility cash flow with and without the MPCA Loan
o Page 1 is the 10 year capital improvement project list
o Page 2 is the cash flow analysis assuming the City with the MPCA loan
o Page 3 is the cash flow analysis assuming the City without the MPCA loan
Recommended Action
• Staff is looking for direction on whether to proceed with the MPCA loan or not
• Should Council want to move forward, this item would be on the agenda for February 19th.
City of Crystal, Minnesota
Capital Improvement Plan - Storm Drainage Fund 515
Schedule of Planned Capital Outlay 2018 to 2023
2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029
Year to Estimated Estimated Estimated Estimated Estimated Estimated Estimated Estimated Estimated Estimated Estimated Estimated
Department Replace Item Cost Amounts Amounts Amounts Amounts Amounts Amounts Amounts Amounts Amounts Amounts Amounts Amounts
Storm water 2018 Dredge Basset Creek Park pond (2)1,000,000$ 1,000,000$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$
Storm water 2019 Becker Park infiltration project (1)2,062,067 - 2,062,067$ - - - - - - - - - -
Storm water 2020 Rate Control,water quality, structure Rehab projects 50,000 - - 50,000 - - - - - - - - -
Storm water 2020 W. Broadway and Kentucky Infiltration 150,000 - - 150,000 - - - - - - - - -
Storm water 2021 6804 - Gaulke Pond design, dredging, lift station rehab 800,000 - - - 800,000 - - - - - - - -
Storm water 2021 Rate Control,water quality, structure Rehab projects 50,000 - - - 50,000 - - - - - - - -
Storm water 2022 Brownwood pond dredging and expansion 750,000 - - - - 750,000 - - - - - - -
Storm water 2022 Saving for flood control structure replacement 200,000 - - - - 200,000 - - - - - - -
Storm water 2023 Rate Control,water quality, structure Rehab projects 50,000 - - - - - 50,000 - - - - - -
Storm water 2023 Equipment Replacement 20,000 - - - - - 20,000 - - - - - -
Storm water 2023 Saving for flood control structure replacement 200,000 - - - - - 200,000 - - - - - -
Storm water 2024 Rate Control,water quality, structure Rehab projects 100,000 -$ -$ -$ -$ -$ -$ 100,000$ -$ -$ -$ -$ -$
Storm water 2024 Saving for flood control structure replacement 200,000 - - - - - - 200,000 - - - - -
Storm water 2025 Bassett Creek Park Pond Dredging and 29th culvert replacement (3)2,500,000 - - - - - - - 2,500,000 - - - -
Storm water 2025 Equipment Replacement 20,000 - - - - - - - 20,000 - - - -
Storm water 2025 Rate Control,water quality, structure Rehab projects 100,000 - - - - - - - 100,000 - - - -
Storm water 2025 Saving for flood control structure replacement 200,000 - - - - - - - 200,000 - - - -
Storm water 2026 Rate Control,water quality, structure Rehab projects 100,000 - - - - - - - - 100,000 - - -
Storm water 2026 Saving for flood control structure replacement 200,000 - - - - - - - - 200,000 - - -
Storm water 2027 Equipment Replacement 20,000 - - - - - - - - - 20,000 - -
Storm water 2027 Pond dredging - TBD 750,000 - - - - - - - - - 750,000 - -
Storm water 2027 Saving for flood control structure replacement 200,000 - - - - - - - - - 200,000 - -
Storm water 2028 Rate Control,water quality, structure Rehab projects 100,000 - - - - - - - - - - 100,000 -
Storm water 2028 Saving for flood control structure replacement 200,000 - - - - - - - - - - 200,000 -
Storm water 2029 Equipment Replacement 20,000 - - - - - - - - - - - 20,000
Storm water 2029 Saving for flood control structure replacement 200,000 - - - - - - - - - - - 200,000
Storm water 2029 Yunkers Park storage project 1,500,000 - - - - - - - - - - - 1,500,000
11,742,067$ 1,000,000$ 2,062,067$ 200,000$ 850,000$ 950,000$ 270,000$ 300,000$ 2,820,000$ 300,000$ 970,000$ 300,000$ 1,720,000$
(3) Assume 50% reimbursement by Bassett Creek Watershed
(1) Secured grants of $1,475,000 have been included in the cash flow analysis below.
(2) Fully reimbursed by Bassett Creek Watershed
City of Crystal, Minnesota
Capital Improvement Plan - Storm Drainage Fund 515
Statement of Cash Flows
2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029
Estimated Estimated Estimated Estimated Estimated Estimated Estimated Estimated Estimated Estimated Estimated Estimated
Cash Flows from Operating Activities
Receipts from customers and users ($1 increase per year through 2021 - stable for remaining term)1,095,142$ 1,154,279$ 1,213,473$ 1,272,666$ 1,272,666$ 1,272,666$ 1,272,666$ 1,272,666$ 1,272,666$ 1,272,666$ 1,272,666$ 1,272,666$
Payments to suppliers and employees (5% growth assumption)(459,183) (482,142) (506,249) (531,562) (558,140) (586,047) (615,349) (646,116) (678,422) (712,343) (747,960) (785,359)
Net Cash Provided (Used) by Operating Activities 635,959 672,137 707,224 741,105 714,527 686,620 657,317 626,550 594,244 560,323 524,706 487,308
Cash Flows from Noncapital Financing Activities
Transfers out (46,782) (49,326) (50,997) (53,547) (56,224) (59,035) (61,987) (65,086) (68,341) (71,758) (75,346) (79,113)
Net Cash Provided (Used) by Noncapital Financing Activities (46,782) (49,326) (50,997) (53,547) (56,224) (59,035) (61,987) (65,086) (68,341) (71,758) (75,346) (79,113)
Cash Flows from Capital and Related Financing Activities
Acquisition of capital assets (1,000,000) (2,062,067) (200,000) (850,000) (950,000) (270,000) (300,000) (2,820,000) (300,000) (970,000) (300,000) (1,720,000)
MPCA Loan 587,067
Payment on MPCA Loan (0% interest); Note; last payment in 2031 (29,353.33) (58,706.65) (58,706.65) (58,706.65) (58,706.65) (58,706.65) (58,706.65) (58,706.65)
Intergovernmental revenue (Watershed, Met Council, MNDNR and other)1,000,000 1,475,000 - - - - - 1,250,000 - - - -
Net Cash Provided (Used) by Capital and Related Financing Activities - - (200,000) (850,000) (979,353) (328,707) (358,707) (1,628,707) (358,707) (1,028,707) (358,707) (1,778,707)
Cash Flows from Investing Activities
Investment earnings 7,879 13,850 20,216 24,981 23,606 20,632 23,827 26,431 16,023 17,855 12,632 13,665
Net Increase (Decrease) in Cash and Cash Equivalents 597,056 636,661 476,443 (137,461) (297,445) 319,509 260,450 (1,040,812) 183,220 (522,286) 103,286 (1,356,847)
Cash and Cash Equivalents, January 1 787,914 1,384,970 2,021,630 2,498,074 2,360,612 2,063,168 2,382,677 2,643,127 1,602,315 1,785,535 1,263,249 1,366,535
Cash and Cash Equivalents, December 31 1,384,970$ 2,021,630$ 2,498,074$ 2,360,612$ 2,063,168$ 2,382,677$ 2,643,127$ 1,602,315$ 1,785,535$ 1,263,249$ 1,366,535$ 9,689$
Enterprise Fund Projected Activity
City of Crystal, Minnesota
Capital Improvement Plan - Storm Drainage Fund 515
Statement of Cash Flows
2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029
Estimated Estimated Estimated Estimated Estimated Estimated Estimated Estimated Estimated Estimated Estimated Estimated
Cash Flows from Operating Activities
Receipts from customers and users ($1 increase per year through 2021 - stable for remaining term)1,095,142$ 1,154,279$ 1,213,473$ 1,272,666$ 1,272,666$ 1,272,666$ 1,272,666$ 1,272,666$ 1,272,666$ 1,272,666$ 1,272,666$ 1,272,666$
Payments to suppliers and employees (5% growth assumption)(459,183) (482,142) (506,249) (531,562) (558,140) (586,047) (615,349) (646,116) (678,422) (712,343) (747,960) (785,359)
Net Cash Provided (Used) by Operating Activities 635,959 672,137 707,224 741,105 714,527 686,620 657,317 626,550 594,244 560,323 524,706 487,308
Cash Flows from Noncapital Financing Activities
Transfers out (46,782) (49,326) (50,997) (53,547) (56,224) (59,035) (61,987) (65,086) (68,341) (71,758) (75,346) (79,113)
Net Cash Provided (Used) by Noncapital Financing Activities (46,782) (49,326) (50,997) (53,547) (56,224) (59,035) (61,987) (65,086) (68,341) (71,758) (75,346) (79,113)
Cash Flows from Capital and Related Financing Activities
Acquisition of capital assets (1,000,000) (2,062,067) (200,000) (850,000) (950,000) (270,000) (300,000) (2,820,000) (300,000) (970,000) (300,000) (1,720,000)
Intergovernmental revenue (Watershed, Met Council, MNDNR and other)1,000,000 1,475,000 - - - - - 1,250,000 - - - -
Net Cash Provided (Used) by Capital and Related Financing Activities - (587,067) (200,000) (850,000) (950,000) (270,000) (300,000) (1,570,000) (300,000) (970,000) (300,000) (1,720,000)
Cash Flows from Investing Activities
Investment earnings 7,879 13,850 14,346 19,051 17,617 14,877 18,601 21,741 11,873 14,250 9,579 11,168
Net Increase (Decrease) in Cash and Cash Equivalents 597,056 49,594 470,573 (143,391) (274,080) 372,461 313,932 (986,796) 237,776 (467,184) 158,939 (1,300,637)
Cash and Cash Equivalents, January 1 787,914 1,384,970 1,434,564 1,905,137 1,761,746 1,487,666 1,860,127 2,174,058 1,187,262 1,425,038 957,854 1,116,792
Cash and Cash Equivalents, December 31 1,384,970$ 1,434,564$ 1,905,137$ 1,761,746$ 1,487,666$ 1,860,127$ 2,174,058$ 1,187,262$ 1,425,038$ 957,854$ 1,116,792$ (183,845)$
Enterprise Fund Projected Activity