2019.07.16 Council Meeting Packet4141 Douglas Drive North • Crystal, Minnesota 55422-1696
Tel: (763) 531-1000 • Fax: (763) 531-1188 • www.crystalnm.gov
Posted: July 12, 2019
City Council Meeting Schedule
Tuesday, July 16, 2019
Time
Type of meeting
Location
City Council Work Session to discuss:
• City Manager monthly update and midyear work
plan review.
6:45 p.m.
• Constituent issues update.
Conference Room A
• New business.
• Announcements.
7 p.m.
City Council meeting
Council Chambers
Auxiliary aids are available upon request to individuals with disabilities by calling the City Clerk at
(763) 531-1145 at least 96 hours in advance. TTY users may call Minnesota Relay at 711 or 1-800-627-3529.
4141 Douglas Drive North • Crystal, Minnesota 55422-1696
Tel: (763) 531-1000 • Fax: (763) 531-1188 • www.crystalnm.gov
City Council
Work Session Agenda
July 16, 2019
6:45 p.m.
Conference Room A
Posted: July 12, 2019
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 July 16, 2019 in Conference
Room A, 4141 Douglas Dr. N., Crystal, Minnesota.
I. Attendance
Council Members Staff
LaRoche Norris
Parsons Therres
Adams Revering
Banks
Budziszewski
Deshler
Kiser
II. Agenda of discussion items:
a. City Manager monthly update and midyear work plan review.
b. Constituent issues update.
c. New business.*
d. Announcements.*
* No supporting documentation.
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.
Objectives:
4141 Douglas Drive North • Crystal, Minnesota 55422-1696
Tel: (763) 53 1 -1000 • Fax: (763) 531-1188 • www.crystalmn.gov
CITY MANAGER WORK PLAN
MONTHLY CHECK IN — JULY 2019
Operational planning for achievement of Council goals
Thriving Business Climate
City Code update complete — last substantive changes to
Chapters 10 — 20 in progress; second reading of ordinance on
7/16/19 agenda
• More permits and licenses available on-line
• Open To Business assistance available
Create Strong Neighborhoods
■ Code enforcement — on-going
• Implementation of Master Parks System Plan — Becker Park
improvement project construction underway
■ Home improvement loans/rebates available through CEE
Fiscally sound and stable policies and practices:
• Long term financial planning:
• Long term plan review and 2020 budget preview
scheduled for 7/11/19
Space needs study (police) still in progress
Assume no new debt
Build inclusive community so all feel welcome
• Updated objectives reviewed and okayed at 6/18 work session
Communications coordinator will attend September
Police Multi -Cultural Advisory Committee meeting for
input/feedback on communications/marketing plan
Monthly check in with Council
Facilitative leadership and vision — update shared vision and common
goals
Clarified vision expectations at February work session
6/18/19 —updated vision, goals & objectives
Mid -year work plan and goals status report attached
Enrichment Development Plan -
Name Anne Norris
Position City Manager
Review Dates Ql Q'- (p
Objective: 1. Operational Planning
Development Opportunity/Enrichment Goal:
* Communicate with Senior Staff Council's goals and priorities and coordinate timely implementation of them
Action Steps/Goals and Timeframe:
-Implement Becker Park improvements
-Refine long term capital plan:
- park funding
- building funding
- internal service funds need to be fully funded
-Update Council priorities
Feedback Methods/Periodic Progress Review
City manager check —ins
Quarterly budget reports
Budget process
Regular check -ins with senior staff
Required Resources:
Time
Facilitator (updating Council priorities) and funds for that
Expected Outcomes/Measures
Updated Council priorities:
Strong neighborhoods
- Thriving business community
- Sound financial policies/practices
- Inclusive, welcoming community
In progress
July 1 1 work session
Done —June 18
Monthly
Quarterly
On-going
Bi -weekly meetings
Increased communications and understanding by senior staff of updated Council priorities and by Council of available
staff capacity and resources
R Enrichment Development Plan
Objective: 2. Facilitative Leadership and Vision
Development Opportunity/Enrichment Goal:
+ Work with City Council and senior staff to develop a shared vision and common goals as well as a plan for
working together on achieving those goals (see previous objective)
Action Steps/Goals and Timeframe:
- Lead conversation to define city manager role and update
Council vision and priorities
Update work plan based on updated priorities
- Updated work plan to incorporate facilitative leadership and vision expectations
- Senior staff assignments for achievement of goals
Feedback Methods/Periodic Progress Review
City manager check—ins
Regular check -ins with senior staff
Required Resources:
Time
Facilitator (updating Council priorities) and funds for that
February, April 2019
Reviewed June 18
Monthly
Bi -weekly meetings
Expected Outcomes/Measures
R Updated Council goals and priorities
+ Updated work plan that addresses/develops facilitative leadership and visionary skills, while addressing
Council goals and priorities
�?ss Plan Goals •2019-2021
Ooal 1: Create a thriving business climate
Objectives Strategic Actions Council and Staff
Roles
Streamline regulatory + E -licenses and on-line City Council
processes permits on line City manager
Maintain and reinvest in
public infrastructure &
beautification
Provide technical assistance
to encourage business
development
■ Review/update building
Senior staff
permit fee schedule
City manager
• Review permit & license
Senior staff
penalties
+ Review Fire code
West Metro staff and Board
sprinkling requirements
New Hope City Council (JPA
— reuse of existing
change)
buildings
i City Council
• Determine public
City Council
improvements to be
City manager
made
Senior staff
Pilot planter boxes
— BLR
Mural — BLR
New police station
■ Open to Business
i City Council
■ Explore partnerships
City manager
with other regional
Community development
community
development agencies
+ Research facade loans
Timeline
In progress
During annual budget cycle
(summer 2019)
Summer/fall 2019
End of 2019
2020 budget discussions
Ongoing contract
2019-2020
Crystal Vision and Goals — 2019 — 2021 Updated 7-10-19 1
Objectives
Strategic Actions
Council and Staff
Roles
Timeline
Conduct planning for capital
• Determine capital
Senior staff, City Council
Spring 2019
needs; develop saving plan for
needs
capital funds and needs
■ Determine annual
funding levels for
Senior staff, City Council
Budget process (summer
capital funds
2019)
■ Determine funding and
timing for
City Council, Senior staff
Budget process (summer
new/expanded police
2019)
department as part of
City Hall campus
Replace debt with long-term
• Payoff outstanding City Council
As feasible/permissible based
planning to be debt free
debt early City manager
on bond call dates (street
* Develop a long term Senior staff
projects)
financial plan for capital
needs
Budget process (summer)
Communicate financial policies
and reasons for them to
community
• Newsletter
• Mayor's Minutes
• Website/social media
+ Budget documents
# Press releases
a Interviews
City Council
City manager
Senior staff
Communications coordinator
At every opportunity
Crystal Vision and Goals — 2019 — 2021 Updated 7-10-19 2 1 P a g e
Objectives Strategic Actions Council and Staff
Roles
Attractive, desirable ■ Complaint based code Council
neighborhoods and safe housing enforcement, prompt
response City Manager
• Curbside collection (every
other year) Community Development
■ WMFRD Home Safety Police
program WMFRD
Promote crime
prevention/awareness
Incentivize Private Improvements
to Housing Stock
Consistent, frequent
communications with citizens
Reinvest in Public buildings and I
infrastructure 9
+ Night To Unite
& Community Policing
Neighborhood Watch
■ CCPB Partnership
• JCPP — MAC
■ Loan/Rebate Programs —
CEE
- Incentive program
■ Newsletter
■ Social Media (Nextdoor
as appropriate)
40 Council Availability
• CCX Media/NWCT
Maintain Community
Center
Implement long-term
park plan
New/expanded PD
station/City Hall campus
Council
City Manager
Police
Senior Staff
Council
City Manager
Community Development
Council
All staff
Council
City Manager
Parks, Recreation, Public Works
and Community Development
Timeline
On-going
2020 (every other year)
On-going
Every August
On-going
On-going
On-going
On-going
On-going
Quarterly
On-going
On-going
On-going
Budget, on-going
Master- park system plan
complete; implementation
through LT capital plan
Crystal Vision and Goals — 2019 — 2021 Updated 7-10-19 3 1
4141 Douglas Drive North • Crystal, Minnesota 55422-1696
Tel: (763) 531-1000 • Fax: (763) 531-1188 • www.crystalmn.gov
City Council Meeting Agenda
July 16, 2019
7 p.m.
Council Chambers
The city manager’s comments are bolded.
1. Call to Order, Roll Call and Pledge of Allegiance.
2. Approval of Agenda
The Council will consider approval of the agenda.
3. Presentations:*
3.1. Recognition of Officer Marcus Issa
3.2. Recognition regarding promotions of Reserve Officers Evenson and Tingle
3.3. Recognition of Chief’s Award to Public Works Employees Randy Ek and Matt Blomquist
4. Consent Agenda
The Council will consider the following items, which are routine and non-controversial in nature, in a
single motion:
4.1. Approval of the minutes from the following meetings:
a. The City Council meeting on June 18, 2019.
b. The City Council work session on June 18, 2019.
4.2. Approval of the list of license applications submitted by the city clerk to the City Council, a list
that is on file in the office of the city clerk.
4.3. Approval of a resolution accepting the following donations:
a. $15,000 from the Chad Greenway Lead the Way Foundation for Becker Park Play Area.
b. $10,000 from VFW Post #494 for Crystal Frolics.
c. $500 from American Legion #630 for Crystal Airport Open House.
d. $250 from Golden Valley VFW #7051 for Crystal Airport Open House.
4.4. Approval of a resolution authorizing a mutual access easement with Hennepin County for the
City Hall - Rockford Road Library campus.
Crystal City Council Meeting Agenda
June 18, 2019
Page 2 of 4
5. Open Forum
(The City Council appreciates hearing from citizens about items of concern and desires to set aside
time during each meeting for Open Forum. To provide ample opportunity for all, speaking time is
limited to three minutes and topic discussion is limited to ten minutes. The Mayor may, as presiding
officer, extend the total time allowed for a topic. By rule, no action may be taken on any item
brought before the Council during Open Forum. The Council may place items discussed during Open
Forum onto subsequent council meeting agendas.)
6. Public Hearing
6.1. The Council will hold a public hearing to consider new on-sale dual wine/beer and Sunday liquor
licenses for Cajun Kitchen, Inc. d/b/a Cajun Kitchen, located at 5440 West Broadway.
Chao Lin, owner of Cajun Kitchen, Inc., d/b/a Cajun Kitchen, is requesting new on-sale dual
wine/beer and Sunday liquor licenses for 5440 West Broadway. All the required paperwork
and background check have been completed. After taking public comment, recommend
approval of the new liquor licenses.
6.2. The Council will hold a public hearing to consider a resolution approving the sale of Lots 1 – 3,
Block 1, Iron Horse Addition (5160, 5168 and 5176 Louisiana Ave N).
The city received two proposals, one from Tollberg Homes and the other from Acacia
Construction. Both proposals offered the city’s minimum price of $205,000 for the three lots.
Tollberg submitted split entry home plans similar to those it has built on other lots in Crystal.
Acacia submitted two story home plans similar to those it has built on scattered site lots in
New Hope. Staff recommends acceptance of the proposal from Acacia.
7. Regular Agenda
7.1. The Council will consider approval of disbursements over $25,000 submitted by the finance
department to the city council, a list that is on file in the office of the finance department.
Recommend approval of disbursements over $25,000.
7.2. The Council will receive the 2018 Audit and Comprehensive Annual Financial Report.
Matt Mayer or another representative of BerganKDV will present the city’s 2018 Audit and
Comprehensive Annual Financial Report. After hearing the presentation, the Council should
accept the 2018 audit and financial report.
Crystal City Council Meeting Agenda
June 18, 2019
Page 3 of 4
7.3. The Council will consider the second reading and adoption of an ordinance amending Chapters
10 – 20 of the City Code and a resolution approving its summary publication.
At its June 4 and 18 work sessions, the City Council reviewed substantive corrections to the
remainder of the City Code, primarily in Chapters 10 – 12, and most of the amendments are in
Chapter 12 regarding liquor licensing. The City Council approved the first reading of the
ordinance making these changes on June 18. Recommend approval of the second reading of
the ordinance amending Chapters 10 – 20 of the City Code and approval of the resolution
approving summary publication of this ordinance.
7.4. The Council will consider an amendment to the West Metro Fire-Rescue District joint powers
agreement.
As part of the West Metro Fire-Rescue District’s 2018 audit, the WMFRD Board discussed the
need to update the joint powers agreement and bylaws for the District so the disbursements
language matches current State law. In the 2017 the Legislature eliminated the written claim
on disbursements requirement for home rule charter cities of the second, third or fourth class
but not for statutory cities. Crystal is a charter city and New Hope is a statutory city. The
state law allows a joint powers organization to follow requirements outline in the joint
powers agreement and the District is already following the new law for charter cities. At its
July 10 meeting, WMFRD Board approved the amended Bylaws making this change, subject to
the Crystal and New Hope city councils approving the amended Joint Powers Agreement.
Recommend approval of the amended Joint Powers Agreement.
8. Announcements
a. The Crystal Business Association meets Wednesday, July 17 at 8:30 a.m. in the Community Room
and is hosted by Associated Bank.
b. Crystal Frolics is being held at Welcome Park from July 25-28. More information is available at
www.crystalfrolics.org.
c. Saturday, August 10, is the Crystal Lions Corn Feed, the Antique Car Run, Hot Rod Show and
Serenity Village Community Church/Feed My Starving Children’s MobilePack at the Crystal
Community Center, 11 a.m. – 4 p.m.
d. Serenity Village Community Church’s Village Fest is Sunday, August 11, noon – 6 p.m.
e. The next City Council meeting is Tuesday, August 20 at 7 p.m. in the Council Chambers at City
Hall.
f. Local organizations are invited to lead the pledge at City Council meetings; contact city staff for
information.
g. City Council meetings and work sessions are open to the public. Current and previous meetings
are available for viewing and listening at www.crystalmn.gov.
Crystal City Council Meeting Agenda
June 18, 2019
Page 4 of 4
9. Adjournment
10. July 16, 2019 Meeting Schedule:
Time Type of meeting Location
6:45 p.m.
City Council Work Session to discuss:
• City Manager monthly update and midyear work
plan review.
• Constituent issues update.
• New business.*
• Announcements.*
Conference Room A
7 p.m. City Council meeting Council Chambers
* Denotes no supporting information included in the packet.
Have a great weekend; see you at Tuesday’s meeting.
Crystal City Council meeting minutes June 18, 2019
Page 1 of 4
1.Call to Order
Pursuant to due call and notice thereof, the regular meeting of the Crystal City Council was held on
June 18, 2019 at 7 p.m. in the Council Chambers at City Hall, 4141 Douglas Dr. N. in Crystal,
Minnesota. Mayor Adams called the meeting to order.
Roll Call
Mayor Adams asked the administrative services coordinator to call the roll for elected officials.
Upon roll call, the following attendance was recorded:
Council members present: Kiser, LaRoche, Parsons, Adams, Banks, Budziszewski and Deshler.
City staff present: City Manager A. Norris, Assistant City Manager/Human Resources ManagerK. Therres, City Attorney T. Gilchrist, Community Development Director J. Sutter, Recreation DirectorJ. Elholm, Police Chief S. Revering and Administrative Services Coordinator T. Tassoni.
Pledge of Allegiance
Mayor Adams led the Council and audience in the Pledge of Allegiance.
2.Approval of Agenda
The Council considered approval of the agenda.
Moved by Council Member Parsons and seconded by Council Member LaRoche to approve the
agenda.
Motion carried.
3.Proclamation
3.1 The Mayor shared a proclamation recognizing the Bassett Creek Watershed Management
Commission’s (BCWMC) 50th Anniversary. BCWMC Administrator Laura Jester and
Commissioner Dave Anderson addressed the Council.
4.Consent Agenda
The Council considered the following items, which are routine and non-controversial in nature, in a
single motion:
4.1 Approval of the minutes from the following meetings:
a.The City Council meeting on June 4, 2019.
b.The City Council work sessions on June 4, 2019.
4.2 Approval of the list of license applications submitted by the city clerk to the City Council, a list
that is on file in the office of the city clerk.
4.3 Approval of Resolution No. 2019-55, accepting the following donations:
a.$751.60 from donation boxes for Crystal Police K9 Unit.
b.$851.50 from Crystal Fund for Community Progress for 2019 Arbor Day trees.
c.$2,500 from Crystal Fund for Community Progress for Becker Park play area.
d.$500 from RecTrac for Becker Park play area.
e.$10,000 from St. Therese Home, Inc. for Becker Park play area.
f.$500 from Rudolph Priebe Post 172 for Crystal Airport Open House.
4.1(a)
Crystal City Council meeting minutes June 18, 2019
Page 2 of 4
g. $2,000 from VFW Post 494 for Crystal Airport Open House.
4.4 Approval of the following items for Crystal Frolics:
a. A temporary on-sale liquor license at Welcome Park on July 25-28, 2019, submitted by West
Metro Fire-Rescue District Firefighters Relief Association.
b. A permit application for display of outdoor fireworks on July 26 and 27, 2019, submitted by
Hollywood Pyrotechnics, Inc.
Moved by Council Member Banks and seconded by Council Member Deshler to approve the consent
agenda.
Motion carried.
5. Open Forum
No public comment was given during open forum.
6. Public Hearing
6.1 Mayor Adams announced the purpose of the public hearing:
To receive comment and consider a new off-sale liquor license for Liquor Liquidator 3, Inc.,
d/b/a Crystal Shine Wines, located at 5120 56th Ave. N.
Administrative Services Coordinator Trudy Tassoni addressed the Council. Applicant Yeng Vang
addressed the Council and answered questions.
Mayor Adams opened the public hearing for testimony. There being no one wishing to appear
before the Council to give testimony, Mayor Adams declared the public hearing closed.
Moved by Council Member Budziszewski and seconded by Council Member LaRoche to approve
the off-sale liquor license for Liquor Liquidator 3, Inc., d/b/a Crystal Shine Wines, located at
5120 56th Ave. N.
Voting aye: Kiser, LaRoche, Parsons, Adams, Banks, Budziszewski and Deshler.
Motion carried.
6.2 Mayor Adams announced the purpose of the public hearing:
To receive comment and consider resolutions vacating the easement on City Hall/library
property and authorizing a deed affirming the 1972 property transfer to Hennepin County.
Community Development Director John Sutter addressed the Council.
Mayor Adams opened the public hearing for testimony. The following person addressed the
Council:
• Burt Orred, 6700 60th Ave. N.
There being no one else wishing to appear before the Council to give testimony, Mayor Adams
declared the public hearing closed.
4.1(a)
Crystal City Council meeting minutes June 18, 2019
Page 3 of 4
Moved by Council Member LaRoche and seconded by Council Member Banks to adopt the
following resolution, the reading of which was dispensed with by unanimous consent:
RESOLUTION NO. 2019 – 56
RESOLUTION VACATING STREET EASEMENT
Voting aye: Kiser, LaRoche, Parsons, Adams, Banks, Budziszewski and Deshler.
Motion carried, resolution declared adopted.
Moved by Council Member LaRoche and seconded by Council Member Banks to adopt the
following resolution, the reading of which was dispensed with by unanimous consent:
RESOLUTION NO. 2019 – 57
RESOLUTION AUTHORIZING DEED
Voting aye: Kiser, LaRoche, Parsons, Adams, Banks, Budziszewski and Deshler.
Motion carried, resolution declared adopted.
7. Regular Agenda
7.1 The Council considered approval of disbursements over $25,000 submitted by the finance
department to the city council, a list that is on file in the office of the finance department.
Moved by Council Member Parsons and seconded by Council Member Budziszewski to approve
the list of disbursements over $25,000.
Voting aye: Kiser, LaRoche, Parsons, Adams, Banks, Budziszewski and Deshler.
Motion carried.
7.2 The Council considered a resolution authorizing the purchase of a We-Go-Round as a part of the
Becker Park play area.
Recreation Director John Elholm addressed the Council.
Moved by Council Member LaRoche and seconded by Council Member Banks to adopt the
following resolution, the reading of which was dispensed with by unanimous consent:
RESOLUTION NO. 2019 – 58
RESOLUTION IN SUPPORT OF PURCHASING AN INCLUSIVE PLAY AREA FOR BECKER PARK
Voting aye: Kiser, LaRoche, Parsons, Adams, Banks, Budziszewski and Deshler.
Motion carried, resolution declared adopted.
7.3 The Council considered the first reading of an ordinance amending Chapters 10 – 20 of the City
Code.
4.1(a)
Crystal City Council meeting minutes June 18, 2019
Page 4 of 4
City Attorney Troy Gilchrist addressed the Council.
Moved by Council Member LaRoche and seconded by Council Member Deshler to adopt the
following ordinance, the reading of which was dispensed with by unanimous consent:
ORDINANCE NO. 2019 – 03
AN ORDINANCE REVISING CHAPTERS X THROUGH XII
OF THE CRYSTAL CITY CODE
And further, that the second and final reading will be held on July 16, 2019.
Voting aye: Kiser, LaRoche, Parsons, Adams, Banks, Budziszewski and Deshler.
Motion carried.
7.4 The Council considered a resolution levying a special assessment for a fire protection system at
Elision Playhouse, 6105 42nd Avenue North.
Community Development Director John Sutter addressed the Council.
Moved by Council Member Budziszewski and seconded by Council Member Parsons to adopt
the following resolution, the reading of which was dispensed with by unanimous consent:
RESOLUTION NO. 2019 – 59
RESOLUTION AUTHORIZING A SPECIAL ASSESSMENT OF FIRE PROTECTION SYSTEM COSTS
PURSUANT TO A PETITION AND WAIVER AGREEMENT WITH ELISION ARTS, LLC
Voting aye: Kiser, LaRoche, Parsons, Adams, Banks, Budziszewski and Deshler.
Motion carried, resolution declared adopted.
8. Announcements
The Council made several announcements about upcoming events.
9. Adjournment
Moved by Council Member Budziszewski and seconded by Council Member LaRoche to adjourn the
meeting.
Motion carried.
The meeting adjourned at 7:40 p.m.
_____________________________________
Jim Adams, Mayor
ATTEST:
_________________________________________ Trudy Tassoni Administrative Services Coordinator
4.1(a)
Crystal City Council work session minutes June 18, 2019
Pursuant to due call and notice given in the manner prescribed by Sectio n 3.01 of the City Charter,
the work session of the Crystal City Council was held at 6:31 p.m. on June 18, 2019 in Conference
Room A, 4141 Douglas Dr. N., Crystal, Minnesota. Mayor Adams called the meeting to order.
I.Attendance
The assistant city manager recorded the attendance for City Council members and staff:
Council members present: Kiser, LaRoche, Parsons, Adams, Budziszewski and Deshler.
Absent: Banks.
City staff present: City Manager A. Norris, Assistant City Manager/Human Resources Manager
K. Therres, City Attorney T. Gilchrist, Recreation Director J. Elholm, Community Development
Director J. Sutter and Police Chief S. Revering.
II.Agenda
1.Substantive changes to the City Code, Chapters 10-20.
2.Council 2019-2020 Goals and Objectives.
3.City manager monthly check-in.
4.Constituent issues update.
5.New business.
6.Announcements.
III.Adjournment
The work session adjourned at 6:48 p.m.
________________________________
Jim Adams, Mayor
ATTEST:
Kimberly Therres, Assistant City Manager
4.1(b)
Page 1 of 2
City of Crystal Council Meeting
July 16, 2019
Applications for City License
Rental – New
3500 Idaho Ave. N. – Kevin Jones (Conditional)
8132 32nd Ave. N. – Ryan Luthi (Conditional)
6828 50th Ave. N. – Robert Brewer (Conditional)
6506 57th Ave. N. – Alicia Barevich
Rental – Renewal
5701 Adair Ave. N. – JDA Group LLC
5023 Angeline Ave. N. – JDA Group LLC
3313 Brunswick Ave. N. – Jon Miller (Conditional)
4100 Brunswick Ave. N. – Serenity Village Community Church
5319 Corvallis Ave. N. – Donald and Kimberly Horton (Conditional)
3422 Douglas Dr. N. – Wally Anderson
5126 Edgewood Ave. N. – Wally Anderson (Conditional)
3816 Hampshire Ave. N. – Michael Mills
4125 Hampshire Ave. N. – Hakizumwami Runesha
4230 Hampshire Ave. N. – William and Norma Smith (Conditional)
4818-4820 Idaho Ave. N. – Jason Flaa (Conditional)
5942 Idaho Ave. N. – MNSF (Conditional)
5001 Jersey Ave. N. – IH2 Property Illinois LP (Conditional)
3018 Kentucky Ave. N. – Elizabeth and Israel Velasco
6920 Lombardy La. N. – Tamara Miller
5436 Louisiana Ave. N. – Hee Yoon Kim (Conditional)
3415 Major Ave. N. – IH3 Property Minnesota LP (Conditional)
4616 Maryland Ave. N. – Godiva Properties LLC (Conditional)
5625 Maryland Ave. N. – Douglas and Charlayne Heinzmann
3333 Nevada Ave. N. #3302 – AS&W Rental Properties LLC
3343 Nevada Ave. N. #4301 – AS&W Rental Properties LLC
3343 Nevada Ave. N. #4302 – AS&W Rental Properties LLC
3343 Nevada Ave. N. #4303 – AS&W Rental Properties LLC
3345 Nevada Ave. N. #4503 – AS&W Rental Properties LLC
3347 Nevada Ave. N. #4701 – AS&W Rental Properties LLC
3347 Nevada Ave. N. #4704 – AS&W Rental Properties LLC
3349 Nevada Ave. N. #4901 – AS&W Rental Properties LLC
5704 Orchard Ave. N. – Sobocinski M&T LLC (Conditional)
5640 Perry Ave. N. – IH2 Property Illinois LP (Conditional)
5641-5643 Perry Ave. N. – Park Ave Homes LLC (Conditional)
4711 Regent Ave. N. – Statt Properties LP (Conditional)
5932 Rhode Island Ave. N. – Kurt and Stacey Kuhlman
5417 Toledo Ave. N. – Scott and Betty Miles
4725 Welcome Ave. N. – Wally Anderson (Conditional)
4230 Xenia Ave. N. – Danny Vo and Christina Duong
5540 Xenia Ave. N. – Harold Creek
6211 32nd Ave. N. – High Seng Chai (Conditional)
8615 32nd Ave. N. – Robert Rader
4.2
Page 2 of 2
8316 32nd Pl. N. – Christopher Narins
7017 36th Ave. N. – 36th Avenue Ventures LLC (Conditional)
7025 36th Ave. N. – 36th Avenue Ventures LLC (Conditional)
6800 45th Ave. N. – William and Norma Smith (Conditional)
5324 47th Ave. N. – William and Norma Smith (Conditional)
5416 51st Ave. N. – Monica Sharma Hanssen (Conditional)
6324 61st Ave. N. – Ignacio Ruiz Ruiz
Tree Trimmer
Minnesota Tree Experts 7527 Oliver Ave N Brooklyn Park, MN 55444
Sorenson Tree Service 478 E Hopkins Street St. Paul, MN 55130
4.2
CITY OF CRYSTAL
RESOLUTION NO. 2019 –
RESOLUTION ACCEPTING DONATIONS FROM
CHAD GREENWAY'S LEAD THE WAY FOUNDATION,
VFW POST #494, AMERICAN LEGION #630
AND GOLDEN VALLEY VFW #7051
WHEREAS, Minnesota Statute §465.03 requires that all gifts and donations of real or personal
property be accepted only with the adoption of a resolution; and
WHEREAS, said donations must be accepted by a resolution adopted by the City Council.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Crystal to accept the
following donations:
Donors Purpose Amount
Chad Greenway’s Lead the Way Foundation Becker Park Play Area $15,000
VFW Post #494 Crystal Frolics $10,000
American Legion #630 Crystal Airport Open House $500
Golden Valley VFW #7051 Crystal Airport Open House $250
AND, BE IT FURTHER RESOLVED that the Crystal City Council sincerely thanks the above-
named for their generous donations.
Dated: July 16, 2019
By: __________________________
Jim Adams, Mayor
ATTEST:
______________________________
Trudy Tassoni
Administrative Services Coordinator
4.3
PAGE 1 OF 3
_____________________________________________________________________
FROM: John Sutter, Community Development Director
_____________________________________________________________________
DATE: July 11, 2019
TO: Anne Norris, City Manager (for July 16 Council meeting)
SUBJECT: Consider a resolution authorizing a mutual access easement with Hennepin
County for the City Hall - Rockford Road Library Campus
On June 18 the City Council authorized the vacation of an unnecessary 1959 street easement
and also a deed affirming the 1972 property conveyance to the county for construction of the
Rockford Road Library.
The next step after these actions is to formalize the shared accesses, both current and
proposed, with a mutual easement to be approved by the city and county.
Staff and attorneys from the city and county have prepared and reviewed the attached mutual
access easement.
COUNCIL ACTION REQUESTED
Adoption of the attached resolution authorizing a mutual access easement with Hennepin
County for the City Hall - Rockford Road Library campus.
NEXT STEPS
Late 2019 into 2020 County designer begins work on detailed plans for Rockford Road
Library renovations including site access changes
2021 (estimated) Construction of Rockford Road Library improvements to include the
site access changes described on the following page
COUNCIL STAFF REPORT
Mutual Access Easement
City Hall - Library Campus
C
4.4
PAGE 2 OF 3
PROPOSED ACCESS IMPROVEMENTS
1. Utilities will need to relocate their poles & overhead lines so they are behind the sidewalk
instead of the curb (this will also match the rest of the poles along 42nd)
2. Close the City Hall curb cut and remove the unnecessary driveway to 42nd
3. Replace the curb and sidewalk between the police department and library curb cuts
4. Widen the library access to create separate right and left turn lanes for exiting traffic, and
increase the radii from 8 feet to 20 feet
5. Close the existing cross-access to eliminate awkward offset through route on City Hall side
6. Open a new cross-access with proper T-intersections on the City Hall side
7. Install a new sidewalk along the north side of the new cross-access to provide an
accessible route between the two buildings
4.4
PAGE 3 OF 3
PROPOSED RESOLUTION AUTHORIZING MUTUAL ACCESS EASEMENT
4.4
City Revision 7/9 County document no. A199636
EASEMENT AGREEMENT
This Easement Agreement is made this ______ day of ____________ by and between the
City of Crystal, a municipal corporation under Minnesota law (“City”), and the County of
Hennepin, a political subdivision of the State of Minnesota (“County”).
RECITALS
1. County is the fee owner of that certain real property legally described on Exhibit A
attached, (“County Parcel”).
2. City is the fee owner of that certain real property legally described on Exhibit B
attached, (“City Parcel”) and;
3. The County and City desire to create reciprocal easement rights over each other’s
parcels for the purposes described below.
NOW THEREFORE, in consideration of the foregoing and other good and valuable
consideration, the receipt of which is hereby acknowledged, County and City hereby agree as
follows:
AGREEMENT
1. County Grant to City. The County hereby grants to the City, its customers,
employees, and invitees a perpetual non-exclusive easement for the purposes of
pedestrian and vehicular ingress and egress over the area on the County Parcel
described on Exhibit C, and depicted on Exhibit D (“City Access Easement”).
2. City Grant to County. The City hereby grants to the County, its customers,
employees, and invitees, a perpetual non-exclusive easement for the purposes of
pedestrian and vehicular ingress and egress over the area on the City Parcel
described on Exhibit E, and depicted on Exhibit F (“County Access Easement”).
3. Relocation of Access between County Parcel and City Parcel. The current
access between the County Parcel and the City Parcel is located in the area
marked as “Current Access Area” on Exhibits D and F. The County and City
intend to close the Current Access Area and create a new access location in the
area marked “New Access Area” on Exhibits D and F. The access rights granted
by this Agreement will apply to the New Access Area upon the closing of the
Current Access Area and opening of the New Access Area.
4. Dumpster Enclosure Easement. The County grants an easement to the City for
the location, use and maintenance of a refuse container in the area on the County
Parcel described on Exhibit G, and depicted on Exhibit H (“Dumpster Enclosure
Easement”).
4.4
City Revision 7/9 County document no. A199636
5. Maintenance and Repair. Each party shall be responsible for the maintenance
and repair of their respective parcels, however, the City shall be solely responsible
for the maintenance and repair of the area of the Dumpster Enclosure Easement.
6. Non-Interference. Except in the case of an emergency, neither party shall place
equipment or materials, install a gate or fence, or perform any other act on their
respective parcels in such a way that will interfere with the intended use of the
easements granted by this Agreement.
7. Indemnification. The County and City shall indemnify, defend, and hold the
other party harmless from claims or causes of action arising from any damage to
property or injury to persons, including payment of reasonable attorneys’ fees,
resulting from, or related to, their respective use of the easements granted by this
Agreement. Such indemnification shall be limited to claims or causes of action
caused by the negligent acts or omissions of the indemnifying party, or their
employees, customers, licensees, contractors, or invitees. Nothing herein shall be
deemed a waiver on the limitations of liability set forth in Minnesota Statutes,
Chapter 466, as amended.
8. Insurance. The County and City represent to the other that each is self-insured,
and capable of complying with the indemnification requirements of this
Agreement.
9. Successors; Termination. The easements granted herein are for the benefit of the
County and City, and shall run with the land and be binding upon and inure to the
benefit of the County and City, and their respective successors and assigns, so
long as the County continues to own and operate a public library on the County
Parcel, and the City continues to operate a public administrative facility on the
City Parcel. Should either party discontinue the use specified in this Paragraph 9
on its parcel, the easements granted herein shall terminate.
10. Governing Law. This Agreement shall be governed by the laws of the State of
Minnesota.
11. Counterparts. This Agreement may be executed in counterparts.
Signature pages follow
4.4
City Revision 7/9 County document no. A199636
City Signature Page to Easement Agreement
________ By________________________
Mayor
By________________________
City Manager
STATE OF MINNESOTA }
} ss
COUNTY OF HENNEPIN }
This instrument was acknowledged before me this _____ day of _______________, 2019
by _______________________, Mayor, and __________________________, City Manager of
the City of Crystal, on behalf of the City.
___________________________
Notary Public
County Signature Page to Easement Agreement
4.4
City Revision 7/9 County document no. A199636
COUNTY BOARD AUTHORIZATION
COUNTY OF HENNEPIN
Reviewed by the County STATE OF MINNESOTA
Attorney's Office
By:
Chair of Its County Board
Date:
ATTEST:
Clerk of County Board
HENNEPIN COUNTY ACKNOWLEDGEMENT
STATE OF MINNESOTA )
) ss.
COUNTY OF HENNEPIN )
This instrument was acknowledged before me this ______ day of _______________,
2019 by Marion Greene, Chair of the Board of Commissioners, and Maria Rose, Clerk of the
Board of Commissioners of the County of Hennepin, on behalf of the County.
______________________________
Notary Public
My Commission Expires ________
This Instrument was drafted by:
Hennepin County Attorney’s Office
C-2000 Government Center
300 South Sixth Street
Minneapolis, Minnesota 55487
4.4
Exhibit A – County Parcel
All that part of the following described property:
Parcel 1 – Torrens Certificate of Title No. 452910
The Northerly 333 feet of Lot 68, Auditor’s Subdivision No. 324, Hennepin County, Minn.
The Northerly 333 feet of Lot 69, Auditor’s Subdivision No. 324, Hennepin County, Minn.
Parcel 2 – Torrens Certificate of Title No. 454008
The Northerly 333 feet of Lot 67 except the Easterly 131.2 feet thereof, Auditor's Subdivision No.
324, Hennepin County, Minn.
Parcel 3 – Torrens Certificate of Title No. 455627
The South 165 feet of the North 498 feet of Lot 68, and
The South 165 feet of the North 498 feet of that part of Lot 67 lying West of the East 131.2 feet,
Auditor's Subdivision No. 324, Hennepin County, Minn.
Parcel 4 – Torrens Certificate of Title No. 455634
The Westerly 65.60 feet of the Easterly 131.20 feet of the Northerly 333.00 feet of Lot 67,
Auditor's Subdivision No. 324, Hennepin County, Minn., except that part thereof which lies
Northerly of a line parallel with and 21.00 feet Southerly of the following described line and
measured at right angles thereto: Beginning at the Northeast corner of Section 17, Township 118,
Range 21; thence South along the East line of the Northeast Quarter of said Section 17 a
distance of 1326.00 feet; thence North 88 degrees 20 minutes West a distance of 472.00 feet;
thence South 89 degrees 53 minutes West a distance of 189.20 feet; thence South 00 degrees
07 minutes East a distance of 12.00 feet to the actual point of beginning of the line to be
described; thence North 89 degrees 53 minutes East a distance of 98.49 feet; thence along a 02
degree 30 minute curve to the right (delta angle 04 degrees 32 minutes, tangent distance 90.71
feet) a distance of 181.33 feet; thence South 85 degrees 35 minutes East along tangent to last
described curve a distance of 100.00 feet and there terminating.
Parcel 5 – Torrens Certificate of Title No. 459905
That part of the Easterly 65.6 feet of Lot 67, Auditor's Subdivision No. 324, Hennepin County,
Minn. lying North of a line drawn parallel with and 459.0 feet South of the North line of the
Southeast Quarter of the Northeast Quarter of Section 17, Township 118, Range 21, except the
North 333 feet thereof.
Parcel 6 – Torrens Certificate of Title No. 460844
That part of Lot 69, Auditor's Subdivision No. 324, Hennepin County, Minn. lying North of a line drawn
parallel with and 465.0 feet South of the North line of the Southeast quarter of the Northeast quarter of
Section 17, Township 118, Range 21, Hennepin County, Minnesota, Except the North 333.0 feet of said
Lot 69.
Parcel 7 – Torrens Certificate of Title No. 1467385
The Westerly 65.6 feet of the Easterly 131.2 feet of that part of Lot 67 lying South of the Northerly
333 feet thereof and North of the South line of the North 498 feet thereof, “Auditor’s Subdivision
No. 324, Hennepin County, Minnesota.”
4.4
lying southerly of HENNEPIN COUNTY STATE AID HIGHWAY NO. 9, PLAT 58, according to the
recorded plat thereof, Hennepin County, Minnesota.
4.4
Exhibit B – City Parcel
All that part of the following described property:
Parcel 1 – Torrens Certificate of Title No. 363595
The Easterly 65.6 feet of the Northerly 333 feet of Lot 67, Auditor's Subdivision No. 324,
Hennepin County, Minn.
Parcel 2 – Abstract (Acquired by Document No. 2392121)
Lot 63, “Auditor's Subdivision Number 324, Hennepin County, Minnesota” according to the map
or plat thereof on file and of record in the office of the Register of Deeds in and for said County.
Parcel 3 – Abstract (Acquired by Document No. 1835303)
That part of the Southeast Quarter of Northeast Quarter of Section 17, Township 118 North,
Range 21 West of the 5th Principal Meridian, Minnesota, described as follows: Commencing
497.67 feet South of Northeast corner of said Southeast Quarter of Northeast Quarter; thence
South 165.88 feet; thence West 262.58 feet; thence North 165.98 feet; thence East to beginning.
Note: The above portion of the Southeast Quarter of Northeast Quarter of said Section
17 appears to now be Lot 64, Auditor's Subdivision No. 324, Hennepin County, Minn.
lying southerly of HENNEPIN COUNTY STATE AID HIGHWAY NO. 9, PLAT 58, according to the
recorded plat thereof, Hennepin County, Minnesota, and lying southerly, southwesterly and westerly of
HENNEPIN COUNTY STATE AID HIGHWAY NO. 102, PLAT 22, according to the recorded plat thereof,
Hennepin County, Minnesota.
4.4
Exhibit C – City Access Easement
A non-exclusive easement for pedestrian and vehicular ingress and egress purposes over the paved,
non-parking portions of the following described property as presently exist and as will be subsequently
constructed, reconstructed and/or relocated:
The Westerly 47.00 feet of the Easterly 112.6 feet of Lot 67, Auditor's Subdivision No. 324,
Hennepin County, Minn. lying North of a line drawn parallel with and 459.0 feet South of the North
line of the Southeast Quarter of the Northeast Quarter of Section 17, Township 118, Range 21,
and lying southerly of HENNEPIN COUNTY STATE AID HIGHWAY NO. 9, PLAT 58, according
to the recorded plat thereof, Hennepin County, Minnesota;
Also, that part of the Easterly 65.6 feet of Lot 67, Auditor's Subdivision No. 324, Hennepin
County, Minn. lying North of a line drawn parallel with and 459.0 feet South of the North line of
the Southeast Quarter of the Northeast Quarter of Section 17, Township 118, Range 21, except
the North 343 feet thereof.
4.4
N2°13'19"E33
196.95
71.99 R=2312.83
N86°06'30"W 146.2
N83°35'14"W 128.
3
6
N81°26'38"E
60328.2 344.64S89°03'28"E 392.12
44.92
311.98 S88°51'30"E
N89°21'30"E
169.66
R=2270.83
1111.01 R=2312.81 1
2
2
.
4
6
N
4
5
°
2
4
'
5
8
"
W
66.68S0°24'EPG 384
524.6
3084.91
69.1
101.25
65.45 6.9133 56.72S0°31'41"E
65.6 248.28 N0°31'41"W108.99 R=2270.81DEED 1685
30(15)
(23)
(1)
(2)
(23)
(29)
(17)
(19)(16)
(18)
59
68 67
63
60 6157
64
58
69
62
111.01 R=2312.81 /\=2°45'57.699.85N3°16'41"W111.0125.78
75.63
664.4465.6 84.6278.513282
56.72R= 2270.81N0°31'30"W
65.6664.3363.36165.98109.93
78.599.85 NORTHN44°35'02"E
300R= 2312.8175
108.9918.36
N0°31'41"W
156.81664.552.7 132/\=2°45'163.93 196.8
R= 2312.81
65.6 /\=2°45'999 9 9999999 9
CountyProperty CityProperty
42ND AVE N
41ST AVE N DOUGLAS DR NUV102
UV9
Exhibit D - City Access Easement Depiction
City AccessEasement lCurrentAccessArea
New AccessArea
ll47.00 llll112.6
l
l459.0l
l34365.6llN line of SE 1/4 of NE 1/4 Sec 17 T 118 R 21
S line of HCSAH No 9, Plat 58
E line of Lot 67, Aud Sub No. 3244.4
Exhibit E – County Access Easement
A non-exclusive easement for pedestrian and vehicular ingress and egress purposes over the paved,
non-parking portions of the following described property as presently exist and as will be subsequently
constructed, reconstructed and/or relocated:
The Westerly 12.00 feet of the Easterly 65.6 feet of Lot 67, Auditor's Subdivision No. 324,
Hennepin County, Minn. lying North of a line drawn parallel with and 130.00 feet South of the
North line of the Southeast Quarter of the Northeast Quarter of Section 17, Township 118, Range
21, and lying southerly of HENNEPIN COUNTY STATE AID HIGHWAY NO. 9, PLAT 58,
according to the recorded plat thereof, Hennepin County, Minnesota;
Also, that part of the Westerly 50.00 feet of Lot 63, Auditor's Subdivision No. 324, Hennepin
County, Minn. lying North of a line drawn parallel with and 459.0 feet South of the North line of
the Southeast Quarter of the Northeast Quarter of Section 17, Township 118, Range 21, except
the North 343 feet thereof;
Also, that part of Lot 63, Auditor's Subdivision No. 324, Hennepin County, Minn. lying Easterly of
the Westerly 50.00 feet thereof, lying westerly of HENNEPIN COUNTY STATE AID HIGHWAY
NO. 102, PLAT 22, according to the recorded plat thereof, Hennepin County, Minnesota, and
lying North of a line drawn parallel with and 459.0 feet South of the North line of the Southeast
Quarter of the Northeast Quarter of Section 17, Township 118, Range 21, except the North
424.00 feet thereof.
4.4
84.91
69.1
101.25
65.45 6.9133 56.72S0°31'41"E
65.6 N2°13'19"E33
196.95
71.99 R=2312.83
N86°06'30"W 146.2
N83°35'14"W 128.
3
6
N81°26'38"E
60328.2 344.64S89°03'28"E 392.12
44.92
311.98 S88°51'30"E
N89°21'30"E
169.66
R=2270.83
1111.01 R=2312.81 12
2
.
4
6
N
4
5
°
2
4
'
5
8
"
W
66.68S0°24'EPG 384
524.6
30248.28 N0°31'41"W108.99 R=2270.81DEED 1685
30(29)
(17)
(19)
(23)
(1)
(2)
(23)
(16)
(18)
(15)
64
58 60 615759
68 67
63
69
62
78.599.85 NORTHN44°35'02"E
300R= 2312.8175
108.9918.36
N0°31'41"W
156.8184.6278.513282
56.72R= 2270.81N0°31'30"W
65.6664.3363.36165.98109.93 111.01 R=2312.81 /\=2°45'57.699.85N3°16'41"W111.0125.78
75.63
664.4465.6
664.552.7 132/\=2°45'163.93 196.8
R= 2312.81
65.6 /\=2°45'999 9 9999999 9
CountyProperty CityProperty
42ND AVE N
41ST AVE N DOUGLAS DR NUV102
UV9
Exhibit F - County Access Easement Depiction
County AccessEasement
County AccessEasement
llNew AccessAreaCurrent AccessArea llN line of SE 1/4 of NE 1/4 Sec 17 T 118 R 21
S line of HCSAH No 9, Plat 58
lW line of HCSAH No 102, Plat 22130l
ll65.6ll12.00
ll50.00W line Lot 63, Aud Sub 324ll
459.0343l
lll
424.00E line Lot 67, Aud Sub 3244.4
Exhibit G – Dumpster Enclosure Easement
A non-exclusive easement for the location of a refuse container and related fencing enclosure purposes
over the following described property:
That part of the Westerly 26.00 feet of the Easterly 42.00 feet of Lot 67, Auditor's Subdivision No.
324, Hennepin County, Minn. lying North of a line drawn parallel with and 341.0 feet South of the
North line of the Southeast Quarter of the Northeast Quarter of Section 17, Township 118, Range
21, except the North 333 feet thereof.
4.4
84.91
69.1
101.25
65.45 6.9133 56.72S0°31'41"E
65.6 248.28 N0°31'41"W108.99 R=2270.81DEED 1685
30N89°21'30"E
169.66
R=2270.83
1111.01 R=2312.81 1
2
2
.
4
6
N
4
5
°
2
4
'
5
8
"
W
66.68S0°24'EPG 384
524.6
30N2°13'19"E33
196.95
71.99 R=2312.83
N86°06'30"W 146.2
N83°35'14"W 128.
3
6
N81°26'38"E
60328.2 344.64S89°03'28"E 392.12
44.92
311.98 S88°51'30"E
(29)
(17)
(19)
(23)
(1)
(2)
(23)
(16)
(18)
(15)
64
58 60 6157
69
6259
68 67
63 84.6278.513282
56.72R= 2270.81N0°31'30"W
65.6664.3363.36165.98109.93 111.01 R=2312.81 /\=2°45'57.699.85N3°16'41"W111.0125.78
75.63
664.4465.6
664.552.7 132/\=2°45'163.93 196.8
R= 2312.81
65.6 /\=2°45'78.599.85 NORTHN44°35'02"E
300R= 2312.8175
108.9918.36
N0°31'41"W
156.81999 999 9 9 9999CountyProperty CityProperty
42ND AVE N
41ST AVE N DOUGLAS DR NUV102
UV9
Exhibit H - Dumpster Enclosure Easement Depiction
DumpsterEnclosureEasementlN line of SE 1/4 of NE 1/4 Sec 17 T 118 R 21
E line of Lot 67, Aud Sub No. 324l
ll
l333341.0llll26.0042.00
4.4
COUNCIL STAFF REPORT
Public Hearing: July 16, 2019 Council Meeting
Consideration of new on-sale dual wine/beer and Sunday
liquor licenses for Cajun Kitchen Inc. dba Cajun Kitchen,
5440 West Broadway
DATE: July 8, 2019
FROM: Administrative Services Coordinator Trudy Tassoni
TO: Mayor and City Council
City Manager Anne Norris
CC: Police Chief Stephanie Revering
City Attorney Troy Gilchrist
RE: Consideration of new on-sale dual wine/beer and Sunday liquor licenses for
Cajun Kitchen, Inc. dba Cajun Kitchen, 5440 West Broadway
Overview
The applicant, Chao Lin, is the owner and manager of Cajun Kitchen restaurant, which opened
in the former Wendy’s location at 5440 West Broadway. Mr. Lin is seeking approval for on-sale
dual wine/beer and Sunday liquor licenses.
Application Review
Staff has reviewed the license application, and the qualifications of the applicant meet Crystal
City Code Section 1200. A copy of this code was also provided to Mr. Lin.
A background check was completed by the Crystal Police Department and Chief Revering finds
no reason to prohibit issuance of the license.
The attached Notice of Public Hearing was published in the Sun Post on July 4.
Mr. Lin is aware of the training requirements under Crystal City Code Section 1200.35, which
states, in part, that every person selling or serving liquor with an on -sale license shall receive
training regarding the selling or serving of liquor to customers. Crystal Police Department staff
will be in contact with Mr. Lin regarding this requirement.
Requested Council Action
Staff recommends approval of the new on-sale dual wine/beer and Sunday liquor licenses for
Cajun Kitchen, Inc., dba Cajun Kitchen, located at 5440 West Broadway.
Applicant Chao Lin will be in attendance at the meeting to answer any questions. He will have an
interpreter with him to assist, as needed.
6.1
CITY OF CRYSTAL
NOTICE OF PUBLIC HEARING
TO CONSIDER ON-SALE DUAL WINE/BEER
AND SUNDAY LIQUOR LICENSES
AT 5440 WEST BROADWAY
Notice is hereby given that the Crystal City Council will hold a public hearing on
July 16, 2019 at 7 p.m. in the Council Chambers located at 4141 Douglas Drive N., to
consider on-sale dual wine/beer and Sunday liquor licenses at 5440 West Broadway,
submitted by Cajun Kitchen Inc. d/b/a Cajun Kitchen. Anyone wishing to express a view
either in person or in writing will be heard at the public hearing.
Auxiliary aids are available for public meetings upon request to individuals with
disabilities by calling the administrative services coordinator at 763-531-1131 at least 96
hours in advance. TTY users may call Minnesota Relay at 711 or 1-800-627-3529.
Administrative Services Coordinator Trudy Tassoni
6.1
_____________________________________________________________________
FROM: Dan Olson, City Planner
____________________________________________________________________
TO: Anne Norris, City Manager (for July 16 meeting)
DATE: July 11, 2019
RE: PUBLIC HEARING: Consider resolution approving the sale of 5160,
5168 and 5176 Louisiana Avenue North for new home construction
A.BACKGROUND
The City has received proposals from Tollberg Homes and Acacia Construction to
purchase the lots at 5160, 5168, and 5176 Louisiana Avenue for new home
construction. Both are Minnesota licensed residential building contractors with no
enforcement actions. These lots were once a part of Iron Horse Park, but were recently
subdivided as separate residential lots. Proposers were required to purchase all three
lots for at least $205,000, and both builders offered this amount.
Attachments:
A.Site location map
B.Resolution
C.Tollberg Homes proposal
D.Acacia Construction proposal (staff recommendation)
B.SUMMARY OF PROPOSALS RECEIVED
1)Tollberg Homes
Proposed homes. All three homes would be split entry with approximately 1,300
SF on the main level consisting of a kitchen, dining/living room, three bedrooms
and two bathrooms. The lower level could be finished in the future with a family
room, bedrooms and bathroom. Each home would have an attached three-car
garage.
Council Staff Report
Lot Sale Public Hearing
5160, 5168 & 5176 Louisiana Avenue North
6.2
2) Acacia Construction (staff recommendation)
Proposed homes. Acacia has not previously purchased lots from the City of
Crystal, but has purchased residential lots from the Cities of New Hope and
Columbia Heights. All three homes would be two-story with attached three-car
garages:
Main level: Approximately 1,000 SF consisting of a great room, dining
room/kitchen, a pantry or foyer and bathroom
Upper level: Approximately 1,300 SF consisting of three bedrooms,
two baths, and a bonus room which could be a fourth bedroom
Lower level: This area could be finished in the future with a family
room, bedroom and bathroom.
C. REQUESTED ACTION
Because Acacia’s proposed homes would have more square footage and a two -story
design that will be more compatible with the Windsor Ridge development currently
under construction in New Hope, staff recommends that the City Council accept the
proposal from Acacia Construction.
If the Council adopts the attached resolution, the lot sales would be expected to close
soon after. Street and utility infrastructure is currently being installed in coordination
with the Windsor Ridge development.
Consistent with previous Council direction for the sale of these lots, net proceeds from
the sale will be placed in the Parks Capital Fund for park system improvements. The
estimated net proceeds are $150,000.
Council action on the attached resolution is requested.
6.2
Attachment A
6.2
CITY OF CRYSTAL
HENNEPIN COUNTY
STATE OF MINNESOTA
RESOLUTION NO. 2019 - ____
A RESOLUTION AUTHORIZING THE SALE OF
5160, 5168 AND 5176 LOUISIANA AVENUE NORTH
FOR NEW HOUSE CONSTRUCTION
WHEREAS, the City of Crystal (“the City”) is the owner of PID 08-118-21-13-0115 which is
being replatted as Iron Horse Addition, Hennepin County, Minnesota; and
WHEREAS, Block 1 of Iron Horse Addition includes Lot 1 to be addressed as 5160 Louisiana
Avenue North, Lot 2 to be addressed as 5168 Louisiana Avenue North and Lot 3 to be
addressed as 5176 Louisiana Avenue North (“the Properties”); and
WHEREAS, the City has solicited proposals from builders who desire to purchase the
Properties and construct thereon new single family houses; and
WHEREAS, the City has accepted the proposal from Acacia Construction.
NOW, THEREFORE, BE IT RESOLVED that the City Council authorizes the sale of the
Properties to Acacia Construction.
BE IT FURTHER RESOLVED that the sale shall be completed in accordance with the terms of
the Purchase and Development Agreement in substantially the form on file in City Hall, and
that the Mayor and City Manager are hereby authorized to sign said Agreement and other
documents required to complete the sale of the Properties to Acacia Construction.
Adopted this 16th day of July, 2019.
____________________________________
Jim Adams, Mayor
____________________________________
Trudy Tassoni, Administrative Services Coordinator
Attachment B
6.2
Attachment C 6.2
6.2
6.2
6.2
6.2
6.2
6.2
6.2
6.2
6.2
6.2
6.2
6.2
6.2
Attachment D
6.2
6.2
6.2
6.2
6.2
6.2
6.2
6.2
6.2
6.2
6.2
6.2
6.2
6.2
6.2
DATE:July 10, 2019
TO:Anne Norris, City Manager
City of Crystal City Council
FROM:Jean McGann, Contracted Finance Director
RE:Expenditures over $25,000
Payee Amount
Met Council Environ Services July 2019 waste water service costs $130,159.55
St. Croix Recreation Playground Becker Park sail shade system $43,850.00
Elision Arts LLC Loan for fire sprinklers at 6105 42nd Ave N $100,000.00
Golden Valley JWC May water costs $150,234.47
Pember Companies Inc Bass Lake Road Streetscape AFP #4 $34,413.37
Waste Management (HRG)HRG recycling costs for May $50,321.83
West Metro Fire Rescue District June fire budget allocation $100,522.40
North Valley Inc Mill overlay project AFP #2 $293,111.86
Boyer Ford Trucks Inc Purchase of new Freightliner truck $77,624.76
Custom Builders Inc Becker Park AFP #3 $560,338.52
LOGIS LOGIS July application support costs $31,183.50
PERA Employee and city required contributions for 6/14/19 pay date $56,161.67
Health Partners July health insurance premiums $106,528.50
PERA Employee and city required contributions for 6/28/19 pay date $56,381.76
$1,790,832.19
Description
C:\Users\anorris\AppData\Local\Microsoft\Windows\INetCache\Content.Outlook\6NH9YAG1\Checks over $25000 Memo
7.1
City of Crystal
Hennepin County, Minnesota
Communications Letter
December 31, 2018
7.2
City of Crystal
Table of Contents
Report on Matters Identified as a Result of
the Audit of the Financial Statements 1
Significant Deficiency 3
Required Communication 4
Financial Analysis 8
Emerging Issues 19
7.2
1
Report on Matters Identified as a Result of
the Audit of the Financial Statements
Honorable Mayor and Members
of the City Council
City of Crystal
Crystal, Minnesota
In planning and performing our audit of the basic financial statements of the City of Crystal, Minnesota,
as of and for the year ended December 31, 2018, in accordance with auditing standards generally
accepted in the United States of America, we considered the City's internal control over financial
reporting (internal control) as a basis for designing audit procedures that are appropriate in the
circumstances for the purpose of expressing our opinions on the financial statements, but not for the
purpose of expressing an opinion on the effectiveness of the City's internal control. Accordingly, we do
not express an opinion on the effectiveness of the City's internal control.
Our consideration of internal control was for the limited purpose described in the preceding paragraph
and was not designed to identify all deficiencies in internal control that might be material weaknesses or
significant deficiencies and, therefore, material weaknesses or significant deficiencies may exist that
have not been identified. In addition, because of inherent limitations in internal control, including the
possibility of management override of controls, misstatements due to error, or fraud may occur and not
be detected by such controls. However, as discussed below, we identified a certain deficiency in internal
control that we consider to be a significant deficiency.
A deficiency in internal control exists when the design or operation of a control does not allow
management or employees, in the normal course of performing their assigned functions, to prevent, or
detect and correct, misstatements on a timely basis. A material weakness is a deficiency, or a
combination of deficiencies, in internal control over financial reporting, such that there is a reasonable
possibility that a material misstatement of the City's financial statements will not be prevented, or
detected and corrected, on a timely basis. A reasonable possibility exists when the likelihood of an event
occurring is either reasonably possible or probable as defined as follows: reasonably possible – the
chance of the future event or events occurring is more than remote but less than likely; probable – the
future event or events are likely to occur. We did not identify any deficiencies in internal control that we
consider to be material weaknesses.
A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less
severe than a material weakness, yet important enough to merit attention by those charged with
governance. The significant deficiency identified is stated within this letter.
7.2
2
The accompanying memorandum also includes financial analysis and recommendations for
improvement of accounting procedures and internal control measures that came to our attention as a
result of our audit of the financial statements of the City, for the year ended December 31, 2018. The
matters discussed herein were considered by us during our audit and they do not modify the opinion
expressed in our Independent Auditor's Report dated June 25, 2019, on such statements.
This communication is intended solely for the information and use of the Members of the City Council
and management and others within the City and state oversight agencies and is not intended to be, and
should not be, used by anyone other than these specified parties.
Minneapolis, Minnesota
June 25, 2019
7.2
City of Crystal
Significant Deficiency
3
LACK OF SEGREGATION OF ACCOUNTING DUTIES
The City had a lack of segregation of accounting duties due to a limited number of office employees.
Management is aware of this condition and has taken certain steps to compensate for the lack of
segregation. However, due to the number of staff needed to properly segregate all of the accounting
duties, the cost of obtaining desirable segregation of accounting duties can often exceed benefits which
could be derived. Management has determined a complete segregation of accounting duties is
impractical to correct.
7.2
City of Crystal
Required Communication
4
We have audited the financial statements of the governmental activities, business-type activities, each
major fund, and the aggregate remaining fund information of the City as of and for the year ended
December 31, 2018. Professional standards require that we advise you of the following matters related
to our audit.
OUR RESPONSIBILITY IN RELATION TO THE FINANCIAL STATEMENT AUDIT
As communicated in our engagement letter, our responsibility, as described by professional standards, is
to form and express opinions about whether the financial statements prepared by management with your
oversight are presented fairly, in all material respects, in accordance with accounting principles
generally accepted in the United States of America. Our audit of the financial statements does not
relieve you or management of its respective responsibilities.
Generally accepted accounting principles provide for certain required supplementary information (RSI)
to supplement the basic financial statements. Our responsibility with respect to the RSI, which
supplement(s) the basic audit financial statements, is to apply certain limited procedures in accordance
with generally accepted auditing standards. However, the RSI was not audited and, because the limited
procedures do not provide us with sufficient evidence to express an opinion or provide any assurance,
we do not express an opinion or provide any assurance on the RSI.
Our responsibility for the supplementary information accompanying the financial statements, as
described by professional standards, is to evaluate the presentation of the supplementary information in
relation to the financial statements as a whole and to report on whether the supplementary information is
fairly stated, in all material respects, in relation to the financial statements taken as a whole.
PLANNED SCOPE AND TIMING OF THE AUDIT
An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the
financial statements; therefore, our audit involved judgment about the number of transactions to be
examined and the areas to be tested.
Our audit included obtaining an understanding of the City and its environment, including internal
control, sufficient to assess the risks of material misstatement of the financial statements and to design
the nature, timing, and extent of further audit procedures. Material misstatements may result from
(1) errors, (2) fraudulent financial reporting, (3) misappropriation of assets, or (4) violations of laws or
governmental regulations that are attributable to the City or to acts by management or employees acting
on behalf of the City.
COMPLIANCE WITH ALL ETHICS REQUIREMENTS REGARDING INDEPENDENCE
The engagement team, others in our firm, as appropriate, our firm, and our network firms have complied
with all relevant ethical requirements regarding independence.
7.2
City of Crystal
Required Communication
5
QUALITATIVE ASPECTS OF SIGNIFICANT ACCOUNTING PRACTICES
Management has the responsibility to select and use appropriate accounting policies. A summary of the
significant accounting policies adopted by the City is included in the notes to financial statements. There
have been no initial selection of accounting policies and no changes to significant accounting policies or
their application during the year ended December 31, 2018. We noted no transactions entered into by the
City during the year for which there is a lack of authoritative guidance or consensus. All significant
transactions have been recognized in the proper period.
Accounting estimates are an integral part of the financial statements prepared by management and are
based on management's knowledge and experience about past and current events and assumptions about
future events. Certain accounting estimates are particularly sensitive because of their significance to the
financial statements and because of the possibility that future events affecting them may differ
significantly from those expected. The most sensitive estimates affecting the financial statements were:
Depreciation – The City is currently depreciating its capital assets over their estimated useful lives,
as determined by management, using the straight-line method.
Expense/Expenditure Allocation – Certain expenses/expenditures are allocated to functions based on
an estimate of the benefit to that particular function. Examples are salaries, benefits, administrative
charges, and supplies.
Total Other Post Employment Benefits (OPEB) Liability and Deferred Outflows of Resources
Related to OPEB – These balances are based on an actuarial study using the estimates of future
obligations of the City for post employment benefits.
Net Pension Liability, Deferred Outflows of Resources Related to Pensions and Deferred Inflows of
Resources Related to Pensions – These balances are based on allocation by the pension plans using
estimates based on contributions.
We evaluated the key factors and assumptions used to develop the accounting estimates in determining
that they are reasonable in relation to the financial statements taken as a whole.
The financial statements disclosures are neutral, consistent, and clear.
SIGNIFICANT DIFFICULTIES ENCOUNTERED DURING THE AUDIT
We encountered no significant difficulties in dealing with management relating to the performance of
the audit.
7.2
City of Crystal
Required Communication
6
UNCORRECTED AND CORRECTED MISSTATEMENTS
Professional standards require us to accumulate all known and likely misstatements identified during the
audit, other than those that are clearly trivial, and communicate them to the appropriate level of
management. Further, professional standards require us to also communicate the effect of uncorrected
misstatements related to prior periods on the relevant classes of transactions, account balances or
disclosures, and the financial statements as a whole. Management did not identify and we did not notify
them of any uncorrected financial statement misstatements.
In addition, none of the misstatements detected as a result of audit procedures and corrected by
management were material, either individually or in the aggregate, to the financial statements taken as a
whole.
DISAGREEMENTS WITH MANAGEMENT
For purposes of this letter, professional standards define a disagreement with management as a matter,
whether or not resolved to our satisfaction, concerning a financial accounting, reporting, or auditing
matter, which could be significant to the City's financial statements or the auditor's report. No such
disagreements arose during the course of the audit.
REPRESENTATIONS REQUESTED FROM MANAGEMENT
We requested certain written representations from management, which are included in the management
representation letter.
MANAGEMENT'S CONSULTATIONS WITH OTHER ACCOUNTANTS
In some cases, management may decide to consult with other accountants about auditing and accounting
matters. Management has informed us that, and to our knowledge, there were no consultations with
other accountants regarding auditing and accounting matters.
OTHER SIGNIFICANT MATTERS, FINDINGS, OR ISSUES
In the normal course of our professional association with the City, we generally discuss a variety of
matters, including the application of accounting principles and auditing standards, operating conditions
affecting the City, and operating plans and strategies that may affect the risks of material misstatement.
None of the matters discussed resulted in a condition to our retention as the City's auditors.
OTHER MATTERS
We applied certain limited procedures to the RSI that supplements the basic financial statements. Our
procedures consisted of inquiries of management regarding the methods of preparing the information
and comparing the information for consistency with management's responses to our inquiries, the basic
financial statements, and other knowledge we obtained during our audit of the basic financial statements.
We did not audit the RSI and do not express an opinion or provide any assurance on the RSI.
7.2
City of Crystal
Required Communication
7
OTHER MATTERS (CONTINUED)
With respect to the supplementary information accompanying the financial statements, we made certain
inquiries of management and evaluated the form, content and methods of preparing the information to
determine that the information complies with accounting principles generally accepted in United States
of America, the method of preparing it has not changed from the prior period and the information is
appropriate and complete in relation to our audit of the financial statements. We compared and
reconciled the supplementary information to the underlying accounting records used to prepare the
financial statements or to the financial statements themselves.
7.2
City of Crystal
Financial Analysis
8
The following pages provide graphic representation of select data pertaining to the financial position and
operations of the City for the past five years. Our analysis of each graph is presented to provide a basis
for discussion.
GENERAL FUND
At December 31, 2018, the General Fund balance was $6,980,446, an increase of 1.3%, or $87,990,
from the 2017 balance. The components of fund balance for the General Fund and fund balance as a
percent of subsequent years' budget are depicted in the graphs below and on the following page.
$6,594,097 $6,382,810 $6,220,496 $6,119,325 $6,181,591
$801,697 $782,627 $817,760 $753,962 $774,914
$-$27,488 $15,519 $19,169 $23,941
$-
$1,000,000
$2,000,000
$3,000,000
$4,000,000
$5,000,000
$6,000,000
$7,000,000
$8,000,000
2014 2015 2016 2017 2018
Unassigned Committed for Compensated Absences Nonspendable
7.2
City of Crystal
Financial Analysis
9
GENERAL FUND (CONTINUED)
The City adopted a budget for 2019 which called for an increase in expenditures and other financing
uses of 1.5%, or $205,369. Fund balance at December 31, 2018, as a percentage of this budget is shown
in the chart below. It is the City's policy to maintain unassigned fund balance equal to 45% of the
General Fund budget for the subsequent year.
52%50%
47%
44%43%
58%57%
53%
49%49%
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
50%
55%
60%
65%
2014 2015 2016 2017 2018
Unassigned Fund Balance Total Fund Balance
7.2
City of Crystal
Financial Analysis
10
GENERAL FUND (CONTINUED)
For the 2018 operating year, the City Council approved a balanced budget anticipating no change in
fund balance. Revenues were under budget by 1.7% and expenditures were 1.3% under budget. This
resulted in a negative variance of $51,610 from budgeted expectations.
General Fund Budget Actual Variance Percentage
Revenue
Taxes and assessments 9,603,779$ 9,538,650$ (65,129)$ -0.7%
Intergovernmental 1,868,789 1,860,929 (7,860) -0.4%
Licenses, permits, fines, and charges for services 1,978,979 1,792,534 (186,445) -9.4%
Other 141,080 162,889 21,809 15.5%
Total revenues 13,592,627 13,355,002 (237,625) -1.7%
Expenditures
General government 2,479,741 2,464,910 (14,831) -0.6%
Public safety 6,989,682 6,971,706 (17,976) -0.3%
Public works 1,371,333 1,391,736 20,403 1.5%
Parks and recreation 2,625,129 2,457,539 (167,590) -6.4%
Community development 571,191 565,170 (6,021) -1.1%
Total expenditures 14,037,076 13,851,061 (186,015) -1.3%
Excess of revenues over
(under) expenditures (444,449) (496,059) (51,610) 11.6%
Net other financing sources (uses) 444,449 584,049 139,600 31.4%
Change in fund balance - 87,990 87,990 N/A
Beginning fund balance 6,892,456 6,892,456 - 0.0%
Ending fund balance 6,892,456$ 6,980,446$ 87,990$ 1.3%
The largest components of the revenue budget variances were in licenses, permits fines, and charges for
services as licenses and permits were budgeted to increase.
Parks and recreation expenditures were under budget by 6.4%, or $167,590, in part due to budgeting for
increases in salaries and health insurance, however, salaries and benefits were lower than anticipated.
Other operational expenditures for supplies, maintenance, and contractual and professional services also
came in under budgeted amounts. The remaining expenditures by function were consistent with
budgeted amounts.
7.2
City of Crystal
Financial Analysis
11
GENERAL FUND REVENUES
The chart below shows the City's revenues by source for the last five years. Total revenues of
$13,355,002 in 2018 increased from $12,723,805 in 2017. The largest increase occurred in property
taxes due in large part to an increase in the amount of property tax levied for the year. The increase in
property tax revenue was offset by a decrease in intergovernmental revenue. The General Fund decrease
was a result of a portion of the local government aid being allocated to capital project funds in 2018,
while all of the aid was allocated to the General Fund in 2017.
2014 2015 2016 2017 2018
Other $536,311 $501,360 $552,865 $466,858 $435,116
Charges for Services 769,202 672,594 791,838 758,968 818,999
Licenses and Permits 924,967 808,695 773,479 785,451 740,192
Intergovernmental 1,961,163 1,991,430 2,008,525 2,003,243 1,860,929
Property Taxes 8,238,974 8,262,652 8,004,390 8,709,285 9,499,766
$-
$1,000,000
$2,000,000
$3,000,000
$4,000,000
$5,000,000
$6,000,000
$7,000,000
$8,000,000
$9,000,000
$10,000,000
$11,000,000
$12,000,000
$13,000,000
$14,000,000
General Fund Revenues
7.2
City of Crystal
Financial Analysis
12
GENERAL FUND EXPENDITURES
The pie charts below show the breakdown of expenditures in the General Fund for the last two years.
The allocation of expenditures by function did not change significantly between 2017 and 2018.
General Government
18%
Public Safety
50%
Public Works
10%
Parks and Recreation
18%
Community
Development
4%
2018 General Fund Expenditures
General Government
20%
Public Safety
49%
Public Works
9%
Parks and Recreation
18%
Community
Development
4%
2017 General Fund Expenditures
7.2
City of Crystal
Financial Analysis
13
GENERAL FUND EXPENDITURES (CONTINUED)
General Fund expenditures increased $522,815, or 3.9%, from the prior year. Public Safety expenditures
increased $466,896 due to increases in salaries, benefits, and prior year vacancies in the police
department that were filled in 2018 along with additional wage expenditures related to the Super Bowl
that were reimbursed on the revenue side. Public Works increased $106,564 due to increases in repairs
and maintenance and other operating expenditures. General Government decreased $157,292 with most
of the variance due to the City having lower salary and benefits and less repairs and maintenance costs
in 2018 than compared to 2017.
2014 2015 2016 2017 2018
Community Development $721,284 $736,813 $523,035 $543,950 $565,170
Parks and Recreation 2,071,226 2,221,638 2,233,897 2,372,112 2,457,539
Public Works 1,241,293 1,251,095 1,276,590 1,285,172 1,391,736
Public Safety 5,595,971 5,744,126 6,069,624 6,504,810 6,971,706
General Government 2,188,671 2,284,547 2,510,387 2,622,202 2,464,910
$-
$1,000,000
$2,000,000
$3,000,000
$4,000,000
$5,000,000
$6,000,000
$7,000,000
$8,000,000
$9,000,000
$10,000,000
$11,000,000
$12,000,000
$13,000,000
$14,000,000
General Fund Expenditures
7.2
City of Crystal
Financial Analysis
14
WATER ENTERPRISE FUND
Activity for the City's Water Fund is shown below. Water operating revenues increased $123,296 as a
result of an increase in rates in 2018. Operating expenses increased $136,583 from 2017 due primarily to
higher water charges from the Joint Water Commission. The Water Fund ended the year with a net
income of $560,131, which was a decrease in net income from 2017 of $157,732.
2014 2015 2016 2017 2018
Operating revenue $2,786,814 $3,222,273 $3,337,980 $3,394,823 $3,518,119
Operating expense 3,928,301 4,131,931 3,037,110 2,960,628 3,097,211
Net income with depreciation (926,209) 495,204 1,809,649 717,863 560,131
Net income without depreciation (745,292) 679,688 2,030,876 944,238 790,222
$(1,000,000)
$-
$1,000,000
$2,000,000
$3,000,000
$4,000,000
$5,000,000
Water Utility
7.2
City of Crystal
Financial Analysis
15
SANITARY SEWER ENTERPRISE FUND
Sewer operating revenues increased $282,224 due to an increase in rates in 2018. Operating expenses
increased $341,562 due to much higher charges associated with sewer disposal in 2018 along with
increased expenditures for machinery and equipment. The Sanitary Sewer Fund's operating income
decreased $59,338 from 2017.
2014 2015 2016 2017 2018
Operating revenue $2,020,673 $2,085,601 $2,196,601 $2,301,863 $2,584,087
Operating expense 1,931,725 1,995,548 2,168,280 2,144,581 2,486,143
Net income with depreciation 126,683 137,656 109,365 180,199 135,797
Net income without depreciation 225,926 266,939 273,405 345,187 322,363
$-
$500,000
$1,000,000
$1,500,000
$2,000,000
$2,500,000
$3,000,000
Sanitary Sewer Utility
7.2
City of Crystal
Financial Analysis
16
STORM DRAINAGE AND STREET LIGHTS ENTERPRISE FUNDS
2014 2015 2016 2017 2018
Operating revenue $760,884 $809,067 $871,233 $1,059,165 $1,335,334
Operating expense 659,972 883,284 903,342 794,169 759,180
Net income with depreciation 103,160 (66,804) (414) 399,193 599,616
Net income without depreciation 422,568 257,251 356,369 744,178 967,746
$(200,000)
$-
$200,000
$400,000
$600,000
$800,000
$1,000,000
$1,200,000
$1,400,000
$1,600,000
Storm Drainage Utility
2014 2015 2016 2017 2018
Operating revenue $187,630 $186,237 $191,382 $195,122 $195,324
Operating expense 169,664 151,305 155,056 154,479 152,301
Net income with depreciation 23,066 43,913 47,299 29,178 56,163
Net income without depreciation 55,283 76,130 79,516 61,395 88,380
$-
$50,000
$100,000
$150,000
$200,000
$250,000
Street Lights Utility
7.2
City of Crystal
Financial Analysis
17
PER CAPITA REVENUES AND EXPENDITURES
Below is a chart of the per capita trends in selected revenue and expenditure line items. In 2018, the
intergovernmental revenue per capita increased and jumped above the State average for similarly sized
cities due in part to receiving a transit oriented development grant and additional street aid funding. The
property taxes per capital increased due to an increase in property tax levy. Total expenditures per capita
decreased in 2018 due to a decrease in capital outlay expenditures when compared to 2017 activity. As
an offset for the decreased capital activity in 2018, current expenditures per capita saw an increase.
2017** 2018***
Intergovernmental revenues per capita 149$ 137$ 159$
Property taxes per capita **** 475 452 478
Total revenue per capita 968 910 932
Expenditures per capita
(less debt service and capital)665 628 658
Total expenditures per capita 1,082 1,168 894
Population 22,855 22,929
* Statewide data obtained from the office of the State Auditor's 2017 Minnesota City Finances Report
** 2017 per capita data uses 2016 population forecast from Metropolitan Council
*** 2018 per capital data uses 2017 population forecast from the Metropolitan Council
**** Property taxes exclude tax increments
Population
Per Capita Trends
City of Crystal
Between
2017 Statewide *
Average-Cities
20,000 and 100,001
7.2
City of Crystal
Financial Analysis
18
TAX CAPACITY, CERTIFIED TAX LEVY, AND CITY TAX RATE
The chart below graphs the tax capacity, certified tax levy, and City tax rate for 2014 through 2018. The
tax capacity is based on total tax capacity, prior to adjustments for captured Tax Increment Financing
(TIF) and fiscal disparities. The certified tax levy amount is also prior to fiscal disparity adjustments.
With market values continuing to climb, the City's tax capacity increased from 2017 to 2018, by
$1,989,614, or 12.1%. With taxable market value increasing at a faster rate than the certified levy, over
the last five years, the City's tax rate has fallen to 49.2%.
$13,180,542
$14,758,503 $15,250,280
$16,470,361
$18,459,975
$8,800,325 $8,865,262 $9,135,123 $9,798,620
$10,627,889
54.8%
49.1%
51.8%
49.0%49.2%
-5%
5%
15%
25%
35%
45%
55%
65%
$-
$3,000,000
$6,000,000
$9,000,000
$12,000,000
$15,000,000
$18,000,000
$21,000,000
$24,000,000
2014 2015 2016 2017 2018
Tax Capacity, Certified Levy, and City Tax Rate
Tax Capacity Certified Tax Levy City Tax Rate
* Tax capacity and city tax rate obtained from the League of Minnesota Cities
7.2
City of Crystal
Emerging Issues
19
Executive Summary
The following is an executive summary of financial and business related updates to assist you in staying
current on emerging issues in accounting and finance. This summary will give you a preview of the new
standards that have been recently issued and what is on the horizon for the near future. The most recent
and significant updates include:
Accounting Standard Update – GASB Statement No. 84 – Fiduciary Activities – GASB has
issued GASB Statement No. 84 relating to accounting and financial reporting for fiduciary
activities. This new statement establishes clarity to determine when a government has fiduciary
responsibility for a certain activity.
Accounting Standard Update – GASB Statement No. 87 – Leases – GASB has issued GASB
Statement No. 87 relating to accounting and financial reporting for leases. This new statement
establishes a single model for lease accounting based on the principle that leases are financing of
the right to use an underlying asset.
The following are extensive summaries of the current updates. As your continued business partner, we
are committed to keeping you informed of new and emerging issues. We are happy to discuss these
issues with you further and their applicability to your City.
ACCOUNTING STANDARD UPDATE – GASB STATEMENT NO. 84 – FIDUCIARY
ACTIVITIES
The objective of this Statement is to improve guidance regarding the identification of fiduciary activities
for accounting and financial reporting purposes and how those activities should be reported.
This Statement establishes criteria for identifying fiduciary activities of all state and local governments.
The focus of the criteria generally is on (1) whether a government is controlling the assets of the
fiduciary activity and (2) the beneficiaries with whom a fiduciary relationship exists. Separate criteria
are included to identify fiduciary component units and postemployment benefit arrangements that are
fiduciary activities. An activity meeting the criteria should be reported in a fiduciary fund in the basic
financial statements. Governments with activities meeting the criteria should present a statement of
fiduciary net position and a statement of changes in fiduciary net position. An exception to that
requirement is provided for a business-type activity that normally expects to hold custodial assets for
three months or less.
GASB Statement No. 84 describes four fiduciary funds that should be reported, if applicable: (1)
pension (and other employee benefit) trust funds, (2) investment trust funds, (3) private-purpose trust
funds, and (4) custodial funds. Custodial funds generally should report fiduciary activities that are not
held in a trust or equivalent arrangement that meets specific criteria.
This Statement also provides for recognition of a liability to the beneficiaries in a fiduciary fund when
an event has occurred that compels the government to disburse fiduciary resources. Events that compel a
government to disburse fiduciary resources occur when a demand for the resources has been made or
when no further action, approval, or condition is required to be taken or met by the beneficiary to release
the assets.
7.2
City of Crystal
Emerging Issues
20
ACCOUNTING STANDARD UPDATE – GASB STATEMENT NO. 84 – FIDUCIARY
ACTIVITIES (CONTINUED)
GASB Statement No. 84 is effective for reporting periods beginning after December 15, 2018. Earlier
application is encouraged.
Information provided above was obtained from www.gasb.org.
ACCOUNTING STANDARD UPDATE – GASB STATEMENT NO. 87 – LEASES
The objective of this Statement is to better meet the information needs of financial statement users by
improving accounting and financial reporting for leases by governments. This Statement increases the
usefulness of governments' financial statements by requiring recognition of certain lease assets and
liabilities for leases that previously were classified as operating leases and recognized as inflows of
resources or outflows of resources based on the payment provisions of the contract. It establishes a
single model for lease accounting based on the foundational principle that leases are financings of the
right to use an underlying asset. Under this Statement, a lessee is required to recognize a lease liability
and an intangible right-to-use lease asset, and a lessor is required to recognize a lease receivable and a
deferred inflow of resources, thereby enhancing the relevance and consistency of information about
governments' leasing activities.
A lease is defined as a contract that conveys control of the right to use another entity's nonfinancial asset
(the underlying asset) as specified in the contract for a period of time in an exchange or exchange-like
transaction. Examples of nonfinancial assets include buildings, land, vehicles, and equipment. Any
contract that meets this definition should be accounted for under the leases guidance, unless specifically
excluded in this Statement.
A short-term lease is defined as a lease that, at the commencement of the lease term, has a maximum
possible term under the lease contract of 12 months (or less), including any options to extend, regardless
of their probability of being exercised. Lessees and lessors should recognize short-term lease payments
as outflows of resources or inflows of resources, respectively, based on the payment provisions of the
lease contract.
A lessee should recognize a lease liability and a lease asset at the commencement of the lease term,
unless the lease is a short-term lease or it transfers ownership of the underlying asset. The lease liability
should be measured at the present value of payments expected to be made during the lease term (less any
lease incentives). The lease asset should be measured at the amount of the initial measurement of the
lease liability, plus any payments made to the lessor at or before the commencement of the lease term
and certain direct costs. A lessee should reduce the lease liability as payments are made and recognize
an outflow of resources (for example, expense) for interest on the liability. The lessee should amortize
the lease asset in a systematic and rational manner over the shorter of the lease term or the useful life of
the underlying asset. The notes to financial statements should include a description of leasing
arrangements, the amount of lease assets recognized, and a schedule of future lease payments to be
made.
7.2
City of Crystal
Emerging Issues
21
ACCOUNTING STANDARD UPDATE – GASB STATEMENT NO. 87 – LEASES
(CONTINUED)
A lessor should recognize a lease receivable and a deferred inflow of resources at the commencement of
the lease term, with certain exceptions for leases of assets held as investments, certain regulated leases,
short-term leases, and leases that transfer ownership of the underlying asset. A lessor should not
derecognize the asset underlying the lease. The lease receivable should be measured at the present value
of lease payments expected to be received during the lease term. The deferred inflow of resources
should be measured at the value of the lease receivable plus any payments received at or before the
commencement of the lease term that relate to future periods. A lessor should recognize interest revenue
on the lease receivable and an inflow of resources (for example, revenue) from the deferred inflows of
resources in a systematic and rational manner over the term of the lease. The notes to financial
statements should include a description of leasing arrangements and the total amount of inflows of
resources recognized from leases.
GASB Statement No. 87 is effective for reporting periods beginning after December 15, 2019. Earlier
application is encouraged.
Information provided above was obtained from www.gasb.org.
7.2
COMPREHENSIVE
ANNUAL FINANCIAL REPORT
OF THE
CITY OF CRYSTAL,
MINNESOTA
For the Year Ended
December 31, 2018
Prepared by
City of Crystal Finance Department
AEM Financial Solutions, Finance Director
7.2
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7.2
City of Crystal
Table of Contents
Page
Introductory Section
Elected Officials and Administration 1
Organizational Chart 2
Letter of Transmittal 3
Certificate of Achievement for Excellence in Financial Reporting 9
Award of Financial Reporting Achievement 10
Financial Section
Independent Auditor's Report 11
Management's Discussion and Analysis 15
Basic Financial Statements
Government-Wide Financial Statements
Statement of Net Position 30
Statement of Activities 31
Fund Financial Statements
Balance Sheet – Governmental Funds 32
Reconciliation of the Balance Sheet to the Statement of Net Position –
Governmental Funds 35
Statement of Revenues, Expenditures, and Changes in Fund Balances –
Governmental Funds 36
Reconciliation of the Statement of Revenues, Expenditures, and Changes in
Fund Balances to the Statement of Activities – Governmental Funds 39
Statement of Revenues, Expenditures, and Changes in Fund Balance –
Budget and Actual – General Fund 40
Statement of Revenues, Expenditures, and Changes in Fund Balance –
Budget and Actual – EDA – Special Revenue 43
Statement of Net Position – Proprietary Funds 44
Statement of Revenues, Expenses, and Changes in Fund Net Position
Proprietary Funds 46
Statement of Cash Flows – Proprietary Funds 48
Statement of Fiduciary Net Position 50
Notes to Financial Statements 51
Required Supplementary Information
Schedule of Changes in Total OPEB Liability and Related Ratios 94
Schedule of Employer Contributions – OPEB 95
Schedule of City's Proportionate Share of Net Pension Liability –
General Employees Retirement Fund 96
Schedule of City's Proportionate Share of Net Pension Liability –
Public Employees Police and Fire Retirement Fund 96
Schedule of City Contributions – General Employees Retirement Fund 97
Schedule of City Contributions – Public Employees Police and Fire Retirement Fund 97
Notes to Required Supplementary Information 99
7.2
City of Crystal
Table of Contents
Page
Supplementary Information
Nonmajor Governmental Funds 102
Combining and Individual Fund Financial Statements and Schedules
Combining Balance Sheet – Nonmajor Governmental Funds 104
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances –
Nonmajor Governmental Funds 106
Schedule of Revenues, Expenditures, and Changes in Fund Balance –
Budget and Actual – TIF Districts - Special Revenue 112
Schedule of Revenues, Expenditures, and Changes in Fund Balance
Budget and Actual – Permanent Improvement Revolving - Capital Projects 113
Schedule of Revenues, Expenditures, and Changes in Fund Balance –
Budget and Actual – Street Maintenance - Capital Projects 114
Schedule of Revenues, Expenditures, and Changes in Fund Balance –
Budget and Actual – Major Building Replacement - Capital Projects 115
Schedule of Revenues, Expenditures, and Changes in Fund Balance –
Budget and Actual – Street Reconstruction - Capital Projects 116
Schedule of Revenues, Expenditures, and Changes in Fund Balance –
Budget and Actual – Police Equipment Revolving - Capital Projects 117
Fiduciary Funds 118
Statement of Changes in Agency Fund Assets and Liabilities 119
Statistical Section (Unaudited) Table Page
Net Position by Component 1 122
Change in Net Position 2 124
Fund Balances of Governmental Funds 3 128
Changes in Fund Balances of Governmental Funds 4 130
Taxable and Estimated Market Values of Taxable Property 5 133
Property Tax Rates – Direct and Overlapping Governments 6 134
Principal Property Taxpayers 7 136
Property Tax Levies and Collations 8 137
Legal Debt Margin Information 9 138
Ratios of Outstanding Debt by Type 10 140
Ratios of General Bonded Debt Outstanding 11 141
Direct and Overlapping Governmental Activities Debt 12 142
Demographic and Economic Statistics 13 143
Principal Employers 14 144
Full-Time City Government Employees by Function 15 145
Operating Indicators by Function 16 146
Capital Asset Statistics by Function 17 148
7.2
1
City of Crystal
Elected Officials and Administration
December 31, 2018
Elected Officials Position Term Expires
Jim Adams Mayor December 31, 2020
Nancy LaRoche Council Member (Section I - Wards 1 and 2) December 31, 2020
Elizabeth Dahl Council Member (Ward 1)December 31, 2018
Jeff Kolb Council Member (Ward 2)December 31, 2018
Olga Parsons Council Member (Section II - Wards 3 and 4) December 31, 2018
John Budziszewski Council Member (Ward 3)December 31, 2020
Julie Deshler Council Member (Ward 4)December 31, 2020
Administration Position
Anne Norris City Manager Appointed
City Treasurer AEM Financial Solutions Appointed
City Clerk Christina Serres Appointed
City Attorney Kennedy & Graven, Chartered Appointed
City Prosecutor MacMillan, Wallace, & Athanases PLLC Appointed
7.2
2
City of Crystal
Organizational Chart
December 31, 2018
7.2
3
June 27, 2019
To the Crystal City Council and Citizens of the City of Crystal
The Comprehensive Annual Financial Report of the City of Crystal, Minnesota, for the fiscal year ended
December 31, 2018, is hereby submitted. The report was prepared in accordance with accounting
principles generally accepted in the United States of America and audited in accordance with U.S.
generally accepted auditing standards. The report meets the requirements of the Office of the State
Auditor and the City of Crystal Charter.
This report consists of management's representations concerning the finances of the City. Consequently,
management assumes full responsibility for the completeness and reliability of all of the information
presented in this report. To provide a reasonable basis for making these representations, management of
the City has established a comprehensive internal control framework that is designed both to protect the
government's assets from loss, theft, or misuse, and to compile sufficient reliable information for the
preparation of the City's financial statements in conformity with GAAP. Because the cost of internal
controls should not outweigh their benefits, the City's internal controls have been designed to provide
reasonable, rather than absolute, assurance that the financial statements will be free from material
misstatement. As management, we assert that, to the best of our knowledge and belief, this financial
report is complete and reliable in all material respects.
The City's financial statements have been audited by BerganKDV, Ltd., a firm of licensed certified
public accountants. The goal of the independent audit was to provide reasonable assurance that the
financial statements of the City for the fiscal year ended December 31, 2018, are free of material
misstatement. The independent audit involved examining, on a test basis, evidence supporting the
amounts and disclosures in the financial statements; assessing the accounting principles used and
significant estimates made by management; and evaluating the overall financial statement presentation.
The independent auditor concluded, based upon the audit, that there was a reasonable basis for rendering
an unmodified opinion that the City's financial statements for the fiscal year ended December 31, 2018,
are fairly presented in conformity with GAAP. The independent auditor's report is presented as the first
component of the Financial Section of this report.
GAAP requires that management provide a narrative introduction, overview, and analysis to accompany
the basic financial statements in the form of Management's Discussion and Analysis (MD&A). This
letter of transmittal is designed to complement MD&A and should be read in conjunction with it. The
City's MD&A can be found immediately following the report of the independent auditors.
4141 Douglas Drive North • Crystal, Minnesota 55422-1696
Tel: (763) 531-1000 • Fax: (763) 531-1188 • www.crystalmn.gov
7.2
4
Profile of Government
The City, incorporated in 1960, is a northwestern suburb of the Minneapolis/St. Paul metropolitan area,
lying adjacent to the City of Minneapolis. The City lies wholly within Hennepin County and
encompasses an area of 5.8 square miles and serves a population of approximately 23,000 residents. The
City is empowered to levy a property tax on both real and personal properties located within its
boundaries. While it also is empowered by state statute to extend its corporate limits by annexation, the
City is a completely developed community and is bordered on all sides by other incorporated
communities.
The City operates under the Council-Manager form of government. Policy-making and legislative
authority are vested in a governing council (City Council) consisting of the mayor and six other
members. The City Council is responsible, among other things, for passing ordinances, adopting the
budget, appointing committees, and hiring both the City Manager and the City Attorney. The City
Manager is responsible for carrying out the policies and ordinances of the City Council and for
overseeing the day-to-day operations of the City. The City Council is elected on a non-partisan basis.
Council members serve four-year staggered terms, with three council members elected every two years.
The mayor is also elected to serve a four-year term. The six council members are elected by section and
ward; the mayor is elected at large.
The City provides its residents and businesses with a full range of services, including police protection,
the construction and maintenance of streets and other infrastructure, recreational activities, building and
housing inspection, health inspection, and planning and code enforcement. In addition, the City operates
five enterprises for water, sanitary sewer, storm drainage, street lighting, and recycling services.
Fire protection services are provided by a joint venture with the West Metro Fire-Rescue District, and
water services are provided by a joint venture with the Golden Valley, Crystal, and New Hope Joint
Water Commission. Additional information on these joint ventures can be found in the notes to the
financial statements.
Housing and redevelopment activities are provided through a legally separate Economic Development
Authority (EDA). Its governing board is comprised of the City Council members and the City has
operational responsibility of the EDA, meaning it manages the EDA's activities in essentially the same
manner in which it manages its own programs and departments. Therefore, it has been included as an
integral part of the City's financial statements.
The annual budget serves as the foundation for the City's financial planning and control. In addition, the
government maintains budgetary controls. The objective of budgetary controls is to ensure compliance
with legal provisions embodied in the annual budget approved by the city council. The level of
budgetary control (i.e. the level at which expenditures cannot legally exceed the budgeted amount) is at
the fund level for all fund types, with the exception of the General Fund, which is at the department
level. Budget-to-Actual comparisons are provided in this financial report for each individual
governmental fund for which an annual budget has been adopted.
7.2
5
FACTORS AFFECTING ECONOMIC CONDITION
Local Economy
Crystal is a blue-collar, bedroom community. While it has a small amount of industry, it has a good
retail sector and is part of the northwest metro area with an abundance of living wage jobs within easy
commuting distance. Good schools and affordable housing make the City attractive to young families
and first time home buyers.
Access to major highways is good. Hennepin County reconstructed the portion of Hennepin County
Highway 81 that passes through the City. Commercial and industrial properties along the Highway 81
corridor represent major redevelopment opportunities for future growth.
The City experienced its most rapid population growth from 1950 to 1970, when the population grew
from 5,700 to its peak of 30,925. Population declined after 1970, as families matured and children left
home. According to the 2010 Census, Crystal's population was 22,151. The most recent estimate from
the Metropolitan Council is that Crystal's population is 23,287.
The City saw significant increases in the market value of commercial/industrial and residential property
until 2008. The City's taxable market value decreased 4.2% from 2008 to 2009, 7.6% from 2009 to
2010, 10.1% from 2010 to 2011, 13.3% from 2011 to 2012, 12.1% from 2012 to 2013, and 0.1% from
2013 to 2014. Most of the 2011 to 2012 change can be attributed to a change the State of Minnesota
made in the way taxable values are calculated. The City's taxable market value increased 13.9% from
2014 to 2015, 14.45% from 2015 to 2016, 11.76% from 2016 to 2017, and 8.49% from 2017 to 2018.
Table 5 in the Statistical Section provides additional information on property values.
Because Crystal is fully developed, redevelopment of blighted or underutilized sites is generally
necessary to increase the community's tax base. The City investigates redevelopment options as they
arise.
The City sold ten lots for new home construction in 2018. In addition, private-sector infill development
yielded four new houses in 2018. Going into 2019, the City has five lots available for construction of
new homes, and private builders have three. It is anticipated that most of these will be sold for new
home construction within a year.
New homes not only increase the City's assessed valuation, but they also serve as a confidence signal for
other homeowners in the neighborhood to make improvements to their existing houses. To that end, the
City provides financial incentives and assistance for home improvements. Homeowners up to 110% of
area median income are eligible for a grant of 20% of the project cost. The City also provides an interest
rate buy-down for MHFA Community Fix-Up Fund loans.
The overall goal of these efforts is to improve the condition, quality, and desirability of the housing
stock to enhance Crystal's reputation as a desirable yet affordable place to buy a home.
7.2
6
FACTORS AFFECTING ECONOMIC CONDITION (CONTINUED)
Long-Term Financial Planning
Capital budgeting for the replacement of buildings, streets, parks, and vehicles is a major financial
challenge. The City has an ongoing street reconstruction program designed to rebuild streets, add new
curb/gutter/sidewalk, and add storm sewer. The street program is planned to be completed one
phase/neighborhood at a time, over 16 phases. Phase 16 was finalized in 2018.
The Major Building Replacement Fund was created for the purpose of accumulating a reserve for the
eventual major remodeling or replacement of the City Hall/Police Station, Fire Stations 1 and 2,
Streets/Parks and Utility buildings, and the Community Center. Construction of a new public works
facility was completed in 2015 and other major building projects will be needed over the next 15 years.
Relevant Financial Policies
It is the City's policy to maintain a fund balance in its General Fund of at least 45% of the next year's
operating budget. This is needed for cash flow purposes. Property taxes and local government aid (LGA)
from the State of Minnesota were 80.0% of the General Fund's revenue in 2018. The City operates on a
calendar year, but half of the property taxes and LGA are received in July and the other half in
December.
Major Initiatives
The City continues to seek opportunities to facilitate commercial and residential redevelopment,
subsidize home improvements by current owners, and fund construction projects that enhance the City's
future development.
Awards
The Government Finance Officers Association of the United States and Canada (GFOA) awarded a
Certificate of Achievement for Excellence in Financial Reporting to the City of Crystal for its
comprehensive annual financial report for the fiscal year ended December 31, 2017.
In order to be awarded a Certificate of Achievement, a government must publish an easily readable and
efficiently organized comprehensive annual financial report. This report must satisfy both accounting
principles generally accepted in the United States of America and applicable legal requirements.
A Certificate of Achievement is valid for a period of one year only. We believe that our current
comprehensive annual financial report continues to meet the Certificate of Achievement Program's
requirements and we are submitting it to the GFOA to determine its eligibility for another certificate.
7.2
7
Acknowledgements
The preparation of this report could not have been accomplished without the efficient and dedicated
services of the staff of the finance department. We would like to express our appreciation to all members
of the department for their assistance and contributions to the preparation of this report. Due credit also
should be given to the mayor and the City Council for their interest and support in planning and
conducting the operations of the government in a responsible and progressive manner.
Respectfully submitted,
Anne L. Norris
City Manager
7.2
8
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7.2
9
7.2
10
7.2
11
Independent Auditor's Report
Honorable Mayor and Members
of the City Council
City of Crystal
Crystal, Minnesota
Report on the Financial Statements
We have audited the accompanying financial statements of the governmental activities, the business-
type activities, each major fund, and the aggregate remaining fund information of the City of Crystal,
Minnesota, as of and for the year ended December 31, 2018, and the related notes to financial
statements, which collectively comprise the City's basic financial statements as listed in the Table of
Contents.
Management's Responsibility for the Financial Statements
Management is responsible for the preparation and fair presentation of these financial statements in
accordance with accounting principles generally accepted in the United States of America; this includes
the design, implementation, and maintenance of internal control relevant to the preparation and fair
presentation of financial statements that are free from material misstatements, whether due to fraud or
error.
Auditor's Responsibility
Our responsibility is to express opinions on these financial statements based on our audit. We did not
audit the financial statements of the West Metro Fire-Rescue District nor the Golden Valley, Crystal,
New Hope Joint Water Commission, joint ventures of the City which are disclosed in the notes to the
City's financial statements, and in which the City reports an equity interest of $1,381,904 and
$4,451,407, respectively. The financial statements of the District and Commission were audited by other
auditors whose reports thereon have been furnished to us and our opinion, insofar as it relates to the
amounts disclosed for the District and Commission, is based on the report of the other auditors. We
conducted our audit in accordance with auditing standards generally accepted in the United States of
America. Those standards require that we plan and perform the audit to obtain reasonable assurance
about whether the financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in
the financial statements. The procedures selected depend on the auditor's judgment, including the
assessment of the risks of material misstatement of the financial statements, whether due to fraud or error.
In making those risk assessments, the auditor considers internal control relevant to the City's preparation
and fair presentation of the financial statements in order to design audit procedures that are appropriate in
the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the City's
internal control. Accordingly, we express no such opinion. An audit also includes evaluating the
appropriateness of accounting policies used and the reasonableness of significant accounting estimates
made by management, as well as evaluating the overall presentation of the financial statements.
7.2
12
Auditor's Responsibility (Continued)
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for
our audit opinions.
Opinions
In our opinion, the financial statements referred to in the first paragraph present fairly, in all material
respects, the respective financial position of the governmental activities, the business-type activities,
each major fund, and the aggregate remaining fund information of the City of Crystal, Minnesota, as of
December 31, 2018, and the respective changes in financial position and where applicable, cash flows,
thereof, and the respective budgetary comparisons for the General Fund and EDA Special Revenue Fund
for the year then ended in accordance with accounting principles generally accepted in the United States
of America.
Implementation of GASB 75
As discussed in Note 17 to the financial statements, the City has adopted new accounting guidance,
Governmental Accounting Standards Board (GASB) Statement No. 75, Accounting and Financial
Reporting for Postemployment Benefits Other than Pensions. Our opinion is not modified with respect
to this matter.
Other Matters
Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the Management's
Discussion and Analysis, which follows this report letter, and the Required Supplementary Information
as indicated in the Table of Contents, be presented to supplement the basic financial statements. Such
information, although not a part of the basic financial statements, is required by GASB who considers it
to be an essential part of financial reporting for placing the basic financial statements in an appropriate
operational, economic, or historical context. We have applied certain limited procedures to the Required
Supplementary Information in accordance with auditing standards generally accepted in the United
States of America, which consisted of inquiries of management about the methods of preparing the
information and comparing the information for consistency with management's responses to our
inquiries, the basic financial statements and other knowledge we obtained during our audit of the basic
financial statements. We do not express an opinion or provide any assurance on the information because
the limited procedures do not provide us with sufficient evidence to express an opinion or provide any
assurance.
Other Information
Our audit was conducted for the purpose of forming opinions on the financial statements that
collectively comprise the City of Crystal's basic financial statements. The introductory section,
combining and individual fund financial statements, and schedules and statistical section are presented
for purposes of additional analysis and are not a required part of the basic financial statements.
7.2
13
Other Matters (Continued)
Other Information (Continued)
The combining and individual fund financial statements and schedules are the responsibility of
management and were derived from and relate directly to the underlying accounting and other records
used to prepare the basic financial statements. Such information has been subjected to the auditing
procedures applied in the audit of the basic financial statements and certain additional procedures,
including comparing and reconciling such information directly to the underlying accounting and other
records used to prepare the basic financial statements or to the basic financial statements themselves,
and other additional procedures in accordance with auditing standards generally accepted in the United
States of America. In our opinion, the combining and individual fund financial statements and schedules
are fairly stated, in all material respects, in relation to the basic financial statements as a whole.
The introductory section and statistical section have not been subjected to the auditing procedures
applied in the audit of the basic financial statements and accordingly, we do not express an opinion or
provide any assurance on them.
Minneapolis, Minnesota
June 25, 2019
7.2
14
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7.2
City of Crystal
Management's Discussion and Analysis
15
As management of the City of Crystal (the City), we have provided readers of the City's financial
statements with this narrative overview and analysis of the financial activities of the City for the fiscal
year ended December 31, 2018. We encourage readers to consider the information presented here in
conjunction with additional information that we have furnished in our Letter of Transmittal, located
previously in this report.
FINANCIAL HIGHLIGHTS
The assets and deferred outflows of resources of the City exceeded its liabilities and deferred inflows of
resources at the close of the most recent fiscal year by $115,912,277. Of this amount, $34,352,566 is
considered unrestricted net position and may be used to meet the City's ongoing obligations to citizens
and creditors.
The City's total net position decreased by $965,395. Governmental activities experienced a $1,638,522
decrease in net position from operations while business-type activities experienced a $673,127 increase in
net position from operations.
At the end of the fiscal year, total fund balance for the General Fund was $6,980,446, or 50.40% of total
General Fund expenditures and transfers out.
The City's total long term debt (excluding net pension liability and net OPEB obligation) decreased by
$1,342,633 during the fiscal year. The City's net OPEB obligation increased by $1,822,277.
Overview of the Financial Statements
Management's Discussion and Analysis is intended to serve as an introduction to the City's basic financial
statements, which are comprised of three components: 1) government-wide financial statements; 2) fund
financial statements; and 3) notes to the financial statements. This report also contains other
supplementary information in addition to the basic financial statements themselves.
GOVERNMENT-WIDE FINANCIAL STATEMENTS
The government-wide financial statements are designed to provide readers with a broad overview of the
City's finances, in a manner similar to private sector business.
The Statement of Net Position presents information on all of the City's assets plus deferred outflows of
resources and liabilities plus deferred inflows of resources, with the difference between the two reported
as net position. Over time, increases or decreases in net position may serve as a useful indicator of
whether the financial position of the City is improving or deteriorating.
The Statement of Activities presents information showing how the City's net position changed during the
most recent fiscal year. All changes in net position are reported as soon as the underlying event giving rise
to the change occurs, regardless of the timing of related cash flows. Thus, revenues and expenses are
reported in this statement for some items that will only result in cash flows in future fiscal periods (e.g.,
uncollected taxes and earned but unused vacation leave).
7.2
City of Crystal
Management's Discussion and Analysis
16
GOVERNMENT-WIDE FINANCIAL STATEMENTS (CONTINUED)
Both of the government-wide financial statements distinguish functions of the City that are principally
supported by taxes and intergovernmental revenues (governmental activities) from other functions that are
intended to recover all or a significant portion of their costs through user fees and charges (business-type
activities). The governmental activities of the City include general government, public safety, public
works, parks and recreation, and community development. The business-type activities of the City include
enterprises for water, sanitary sewer, storm drainage, street lights, and recycling.
The government-wide financial statements include not only the City itself (known as the primary
government), but also the Economic Development Authority (EDA). The EDA is a legally separate entity
and its governing board is comprised of the City Council members. The City has operational
responsibility of the EDA and it functions as a department of the City to provide housing and
redevelopment assistance through the administration of various programs. Therefore, the EDA has been
included as an integral part of the City's financial statements.
Fund Financial Statements
A fund is a grouping of related accounts that is used to maintain control over resources that have been
segregated for specific activities or objectives. The City, like other state and local governments, uses fund
accounting to ensure and demonstrate compliance with finance-related legal requirements. All of the
funds of the City can be divided into three categories, including governmental funds, proprietary funds,
and fiduciary funds.
Governmental Funds
Governmental funds are used to account for essentially the same functions reported as governmental
activities in the government-wide financial statements. However, unlike the government-wide financial
statements, governmental fund financial statements focus on near term inflows and outflows of spendable
resources, as well as balances of spendable resources available at the end of the fiscal year. Such
information may be useful in evaluating a government's near-term financing requirements.
Because the focus of governmental funds is narrower than that of the government-wide financial
statements, it is useful to compare the information presented for governmental funds with similar
information presented for governmental activities in the government-wide financial statements. By doing
so, readers may better understand the long term impact of the government's near term financing decisions.
Both the Governmental Fund Balance Sheet and the Governmental Fund Statement of Revenues,
Expenditures, and Changes in Fund Balances provide a reconciliation to facilitate this comparison
between governmental funds and governmental activities.
The City maintains fifteen individual governmental funds. Information is presented separately in the
governmental fund balance sheet and in the governmental fund statement of revenues, expenditures, and
changes in fund balances for the General, EDA, Debt Service, Police Equipment Revolving, and Street
Reconstruction funds, all of which are considered to be major funds. Data from the other ten
governmental funds are combined into a single aggregated presentation. Individual fund data for each of
these non-major governmental funds is provided in the form of combining statements elsewhere in this
report.
7.2
City of Crystal
Management's Discussion and Analysis
17
GOVERNMENT-WIDE FINANCIAL STATEMENTS (CONTINUED)
Governmental Funds (Continued)
The City adopts an annual appropriated budget for all of its governmental funds. Budget to actual
comparisons are provided in this financial report for each individual governmental fund for which an
annual budget has been adopted.
Proprietary Funds
The City maintains two different types of proprietary funds. Enterprise funds are used to report the same
functions presented as business-type activities in the government-wide financial statements. The City uses
enterprise funds to account for its water, sanitary sewer, storm drainage, street lights, and recycling
operations. Internal service funds are an accounting device used to accumulate and allocate costs
internally among the City's various functions. The City uses an internal service fund to account for its
self-insurance activities. Because this activity predominantly benefits governmental rather than business-
type functions, it has been included within governmental activities in the government-wide financial
statements.
Proprietary funds provide the same type of information as the government-wide financial statements, only
in more detail. The proprietary fund financial statements provide separate information for the water,
sanitary sewer, storm drainage, street lights, and recycling operations, all of which are reported as major
funds of the City.
Fiduciary Funds
Fiduciary funds are used to account for resources held for the benefit of parties outside the government.
Fiduciary funds are not reflected in the government-wide financial statements because the resources of
those funds are not available to support the City's own programs. The accounting used for fiduciary funds
is much like that used for proprietary funds.
Notes to Financial Statements
The notes provide additional information that is essential to a full understanding of the data provided in
the government-wide and fund financial statements.
Other Information
Required Supplementary Information concerning the City's progress in funding its obligation to provide
pension and OPEB benefits to its employees is presented immediately following the notes to the financial
statements.
Combining and individual fund statements and schedules for nonmajor funds are presented immediately
following the Required Supplementary Information.
7.2
City of Crystal
Management's Discussion and Analysis
18
GOVERNMENT-WIDE FINANCIAL ANALYSIS
Net Position
The City has 54.25% of its total net position invested in capital assets (including land, buildings and
structures, improvements other than buildings, machinery and equipment, office equipment and
furnishings, software, vehicles and trailers, and infrastructure), less any related outstanding debt used to
acquire those assets. The City uses these capital assets to provide services to citizens. Consequently, these
assets are not available for future spending. Although the City's investment in its capital assets is reported
net of related debt, it should be noted that the resources needed to repay this debt must be provided from
other sources, since the capital assets themselves cannot be used to liquidate these liabilities.
An additional 16.11% of the City's net position represents resources that are subject to external
restrictions on how they may be used. The remaining balance of 29.64% represents unrestricted net
position that may be used to meet the government's ongoing obligations to citizens and creditors.
At the end of the current fiscal year, the City is able to report positive balances in all three categories of
net position, both for the government and business-type activities. The same situation held true for the
prior fiscal year.
A summary of the City's net position follows:
2018 2017 2018 2017 2018 2017
Assets
Current and other assets 55,253,844$ 56,570,251$ 7,705,993$ 6,255,064$ 62,959,837$ 62,825,315$
Equity interest in joint venture 1,381,904 1,690,079 4,451,407 4,323,142 5,833,311 6,013,221
Capital assets 58,895,706 59,603,065 21,693,069 22,283,455 80,588,775 81,886,520
Total assets 115,531,454 117,863,395 33,850,469 32,861,661 149,381,923 150,725,056
Deferred Outflows of Resources 4,861,964 6,135,231 123,549 168,202 4,985,513 6,303,433
Long-Term Liabilities
outstanding 26,580,616 27,714,798 976,287 870,852 27,556,903 28,585,650
Other liabilities 1,634,198 1,510,590 280,695 176,180 1,914,893 1,686,770
Total liabilities 28,214,814 29,225,388 1,256,982 1,047,032 29,471,796 30,272,420
Deferred Inflows of Resources 8,795,515 9,751,627 187,848 126,770 8,983,363 9,878,397
Net Position
Net investment
in capital assets 41,195,367 40,534,551 21,693,069 22,283,455 62,888,436 62,818,006
Restricted 18,671,275 20,099,040 - - 18,671,275 20,099,040
Unrestricted 23,516,447 24,388,020 10,836,119 9,572,606 34,352,566 33,960,626
Total net position 83,383,089$ 85,021,611$ 32,529,188$ 31,856,061$ 115,912,277$ 116,877,672$
Governmental Activities Business-Type Activities Total
Net Position
7.2
City of Crystal
Management's Discussion and Analysis
19
GOVERNMENT-WIDE FINANCIAL ANALYSIS (CONTINUED)
Net Position (Continued)
A summary of the City's changes in net position and revenues and expenses for 2018 and 2017 follows:
2018 2017 2018 2017 2018 2017
Revenues
Program revenues -
Charges for services 2,387,093$ 1,969,710$ 7,553,779$ 7,033,104$ 9,940,872$ 9,002,814$
Operating grants and
contributions 699,638 659,450 547,760 680,740 1,247,398 1,340,190
Capital grants and
contributions 2,337,789 7,473,350 - - 2,337,789 7,473,350
General revenues -
Property taxes 11,193,252 10,469,019 - - 11,193,252 10,469,019
Intergovernmental 1,850,588 1,753,898 - - 1,850,588 1,753,898
Grants and contributions
not restricted to
specific programs - - - - - -
Other 774,077 393,458 98,002 52,208 872,079 445,666
Total revenues 19,242,437 22,718,885 8,199,541 7,766,052 27,441,978 30,484,937
Expe n se s
General government 3,435,708 2,964,731 - - 3,435,708 2,964,731
Public safety 7,250,306 7,546,777 - - 7,250,306 7,546,777
Public works 4,285,522 4,224,253 - - 4,285,522 4,224,253
Parks and recreation 3,299,792 3,128,275 - - 3,299,792 3,128,275
Community development 1,159,700 1,616,752 - - 1,159,700 1,616,752
Interest on long-term debt 518,975 541,919 - - 518,975 541,919
Water - - 3,105,611 2,970,228 3,105,611 2,970,228
Sanitary sewer - - 2,486,143 2,144,581 2,486,143 2,144,581
Storm drainage - - 759,180 809,169 759,180 809,169
Street lights - - 152,301 174,479 152,301 174,479
Recycling - - 335,310 324,853 335,310 324,853
Total expenses 19,950,003 20,022,707 6,838,545 6,423,310 26,788,548 26,446,017
Change In Net Position
Before transfers (707,566) 2,696,178 1,360,996 1,342,742 653,430 4,038,920
Transfers 502,049 (2,048,142) (502,049) 2,048,142 - -
Total change in net position (205,517) 648,036 858,947 3,390,884 653,430 4,038,920
Net position - beginning of year, restated 83,588,606 84,373,575 31,670,241 28,465,177 115,258,847 112,838,752
Net position - end of year 83,383,089$ 85,021,611$ 32,529,188$ 31,856,061$ 115,912,277$ 116,877,672$
Governmental Activities Business-Type Activities Total
Changes in Net Position
7.2
City of Crystal
Management's Discussion and Analysis
20
GOVERNMENT-WIDE FINANCIAL ANALYSIS (CONTINUED)
Governmental Activities
Governmental activities decreased the City's governmental-type net position by $1,638,522, or 1.93%,
accounting for 169.73% of the total decrease in the City's net position.
Business-Type Activities
Business-type activities increased the City's business-type net position by $673,127, or 2.11%, offsetting
for (69.73)% of the total decrease in the City's net position.
Key elements of the net increase include:
Rate increases –
The City Council approved a rate increase of 11.00% for the sanitary sewer utility, which
increased rates charged from $55.15 per quarter for residential properties in 2017 to $61.22 per
quarter in 2018. In addition, the sanitary sewer utility increase the rate per 1,000 gallons from
commercials users from $2.43 in 2017 to $2.67 in 2018.
The City Council approved a rate increase of 10.00% for the storm drainage utility, which
increased rates charged from $16.50 per quarter for residential properties in 2017 to $18.15 per
quarter in 2018. In addition, the storm drainage utility rate per residential equivalency factor (per
acre) for commercial users increase by 5.67%, this increase the quarterly factor from $412.50 in
2017 to $435.88 in 2018.
7.2
City of Crystal
Management's Discussion and Analysis
21
EXPENSES AND PROGRAM REVENUES
Governmental Activities
7.2
City of Crystal
Management's Discussion and Analysis
22
REVENUES BY SOURCE
7.2
City of Crystal
Management's Discussion and Analysis
23
EXPENSES AND PROGRAM REVENUES
7.2
City of Crystal
Management's Discussion and Analysis
24
REVENUES BY SOURCE
7.2
City of Crystal
Management's Discussion and Analysis
25
FINANCIAL ANALYSIS OF THE CITY'S FUNDS
Governmental Funds
At the end of the fiscal year, the City's governmental funds reported combined ending fund balances of
$36,015,841, an increase of $1,627,268 compared to the prior year.
Approximately 17.16% of the total amount ($6,181,591) constitutes unassigned fund balance, which is
available for spending at the government's discretion. The remainder of fund balance has been classified
as nonspendable ($23,941), restricted ($7,465,515), committed ($22,270,870), and assigned ($73,924).
The General Fund is the main operating fund of the City. At the end of the fiscal year total fund balance
was $6,980,446. Unassigned fund balance was $6,181,591, $774,914 was committed for compensated
absences, and $23,941 was reported as nonspendable to offset inventory. As a measure of the General
Fund's liquidity, it may be useful to compare total fund balance to total fund expenditures. Total fund
balance represents 50.40% of total General Fund expenditures and transfers out. The total fund balance is
slightly more than the balance called for by the City's fund balance policy. Fund balance provides
working capital to support operations until the first current-year tax settlement is received in June and
July.
There was an increase of $87,990 in the fund balance of the General Fund during the current fiscal year.
Total revenues were $237,625 lower than the final budget. Special assessments; licenses and permits;
intergovernmental; charges for services; fines and forfeitures, and miscellaneous revenues were lower
than budget. Actual expenditures were $186,015 lower than the final budget.
The EDA Fund recorded an increase of $85,310 in its fund balance during the current fiscal year. Total
revenues were greater than budget by $15,176. The fund balance of $3,931,334 was committed for
economic development projects.
The Debt Service Fund has a total fund balance of $6,079,365, all of which is restricted for the payment
of debt service. The net increase in fund balance during the current fiscal year was $767,069. For
additional transaction details, refer to the Long Term Debt section located later in this Management's
Discussion and Analysis, or to Note 6 in the notes to the financial statements.
The Street Reconstruction Fund recorded an increase of $2,953,100 in its fund balance during the current
fiscal year. This was due to intergovernmental revenues and a transfer from the Street Maintenance Fund.
All of the fund balance of $5,672,092 is committed.
The Police Equipment Revolving Fund Balance declined by $58,566.
Proprietary Funds
The City's proprietary funds provide the same type of information found in the government-wide financial
statements, but in more detail.
7.2
City of Crystal
Management's Discussion and Analysis
26
FINANCIAL ANALYSIS OF THE CITY'S FUNDS (CONTINUED)
Proprietary Funds (Continued)
Unrestricted net position in the City's enterprise funds totaled $10,836,119 at the end of the fiscal year.
The water, storm drainage, street light, and recycling funds reported increases in net position from
operations of $378,527, $482,748, $42,358, and $1,121, respectively, and the sanitary sewer fund
reported a decrease in net position from operations of $45,807.
Budget Highlights
The City's General fund budget was not amended during the year. Revenues and expenditures both
provided negative budget variances. Total revenues were $237,625 lower than the final budget. Special
assessments; licenses, permits and inspections; charges for sales and/or services; fines and forfeitures, and
miscellaneous revenues were lower than budget. Actual expenditures were $186,015 lower than the final
budget.
Capital Assets
The City's net capital assets for its governmental and business-type activities as of December 31, 2018,
are $80,588,775. This balance represents a net decrease of $1,297,745 from the prior year. Additional
details of capital asset activity for the year can be found in Note 5 in the notes to the financial statements.
Long-term Debt
The City's total long term debt decreased by $1,342,633, or 6.73%, during the fiscal year. Normal
required annual payments were made on bonds payable and compensated absences.
Additional details of long term debt activity for the year can be found in Note 6 in the notes to financial
statements.
The City's sound financial management and strong financial position, as evidenced by favorable reserves,
has earned the City an Aa2 rating from Moody's Investors Service on its G.O. debt. Moody's Investors
Service last completed a rating review in 2017 with no change in the rating. The City expects to receive
the Aa2 rating in the future.
State statutes limit the amount of G.O. debt a governmental entity may issue to 3% of total taxable market
value. The current debt limitation for the City is $56,928,474. The City currently has no outstanding G.O.
debt.
Economic Factors and Next Year's Budgets and Rates
Economic factors affect the preparation of annual budgets. The following factors were considered in
preparing the City's budget for the 2019 fiscal year:
The 2019 budget includes a 4.02% tax levy increase. This will be supplemented by increases in
other revenues to cover an inflationary increase in the operating budget.
In 2018, the City completed a utility rate study that produced a modified rate structure. Changes
to fixed fees for sewer charges being based on water consumption, increases in the tiered water
fees and an increase in storm water fees will result in varying increases to residential and
commercial users.
7.2
City of Crystal
Management's Discussion and Analysis
27
FINANCIAL ANALYSIS OF THE CITY'S FUNDS (CONTINUED)
Requests for Information
Questions concerning any of the information provided in this report or requests for additional information
should be addressed to:
City of Crystal
Attn: Finance Director
4141 Douglas Drive N.
Crystal, MN 55422
7.2
28
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7.2
29
BASIC FINANCIAL STATEMENTS
7.2
City of Crystal
Statement of Net Position
December 31, 2018
Governmental
Activities
Business-Type
Activities Total
Assets
Cash and investments (including cash equivalents) 39,442,364$ 5,768,479$ 45,210,843$
Cash with fiscal agent 68,931 - 68,931
Accrued interest 80,784 - 80,784
Accounts receivable 68,679 1,499,442 1,568,121
Delinquent taxes receivable 169,714 - 169,714
Special assessments receivable 14,426,213 374,595 14,800,808
Due from other governments 296,817 13,842 310,659
Inventory 23,941 48,335 72,276
Prepaid items - 1,300 1,300
Land held for resale 643,711 - 643,711
Notes receivable 32,690 - 32,690
Equity interest in joint venture 1,381,904 4,451,407 5,833,311
Capital assets (net of accumulated depreciation,
where applicable)
Land 6,860,536 759,062 7,619,598
Buildings and structures 9,235,378 2,337,785 11,573,163
Improvements other than buildings 2,488,696 6,253 2,494,949
Machinery and equipment 1,996,289 2,290,799 4,287,088
Office equipment and furnishings 401,986 - 401,986
Software 26,775 43,302 70,077
Vehicles and trailers 1,040,963 277,863 1,318,826
Infrastructure 30,015,733 13,460,907 43,476,640
Construction in progress 6,829,350 2,517,098 9,346,448
Total assets 115,531,454 33,850,469 149,381,923
Deferred Outflows of Resources
Pension-related deferred outflows 4,723,450 107,057 4,830,507
OPEB-related deferred outflows 138,514 16,492 155,006
Total deferred outflows of resources 4,861,964 123,549 4,985,513
Liabilities
Accounts and other current liabilities 1,317,991 280,695 1,598,686
Interest payable 201,227 - 201,227
Unearned revenue 114,980 - 114,980
Noncurrent liabilities
Due within one year 2,077,145 72,825 2,149,970
Due in more than one year 16,398,108 67,720 16,465,828
Net pension liability, due in more than one year 5,859,755 568,365 6,428,120
Total OPEB liability, due in more than one year 2,245,608 267,377 2,512,985
Total liabilities 28,214,814 1,256,982 29,471,796
Deferred Inflows of Resources
State aid related deferred inflows of resources 2,405,800 - 2,405,800
Pension-related deferred inflows of resources 6,389,715 187,848 6,577,563
Total deferred inflows of resources 8,795,515 187,848 8,983,363
Net Position
Net investment in capital assets 41,195,367 21,693,069 62,888,436
Restricted for
TIF projects 1,327,159 - 1,327,159
Debt service 17,285,125 - 17,285,125
Special projects 58,991 - 58,991
Unrestricted 23,516,447 10,836,119 34,352,566
Total net position 83,383,089$ 32,529,188$ 115,912,277$
See notes to financial statements.30
7.2
Program RevenuesExpensesCharges for ServicesOperating Grants and ContributionsCapital Grants and ContributionsGovernmental ActivitiesBusiness-Type ActivitiesTotalGovernmental activities General government 3,435,708$ 243,710$ 20,280$ 39,214$ (3,132,504)$ -$ (3,132,504)$ Public safety 7,250,306 346,501 649,748 - (6,254,057) - (6,254,057) Public works 4,285,522 - 3,897 2,259,691 (2,021,934) - (2,021,934) Parks and recreation 3,299,792 541,486 12,406 - (2,745,900) - (2,745,900) Community development 1,159,700 1,255,396 13,307 38,884 147,887 - 147,887 Interest on long-term debt 518,975 - - - (518,975) - (518,975) Total governmental activities 19,950,003 2,387,093 699,638 2,337,789 (14,525,483) - (14,525,483) Business-type activities Water 3,105,611 3,265,849 380,535 - - 540,773 540,773 Sanitary sewer 2,486,143 2,578,065 6,022 - - 97,944 97,944 Storm drainage 759,180 1,174,131 161,203 - - 576,154 576,154 Street lights 152,301 195,324 - - - 43,023 43,023 Recycling 335,310 340,410 - - - 5,100 5,100 Total business-type activities 6,838,545 7,553,779 547,760 - - 1,262,994 1,262,994 Total primary government 26,788,548$ 9,940,872$ 1,247,398$ 2,337,789$ (14,525,483) 1,262,994 (13,262,489) General revenues Property taxes 11,193,252- 11,193,252 Unrestricted state aids 1,850,588 - 1,850,588 Unrestricted investment earnings 524,872 98,002 622,874 Other general revenue 17,234 - 17,234 Gain on sale of capital assets 231,971 - 231,971 Transfers 502,049 (502,049) - Total general revenues and transfers 14,319,966 (404,047) 13,915,919 Change in net position (205,517) 858,947 653,430 Net position - beginning, as previously stated 85,021,611 31,856,061 116,877,672 Change in accounting principle (see Note 17) (1,433,005) (185,820) (1,618,825) Net position - beginning, as restated 83,588,606 31,670,241 115,258,847 Net position - ending 83,383,089$ 32,529,188$ 115,912,277$ 31 See notes to financial statements.Net (Expense) Revenues and Changes in Net PositionFunctions/ProgramsCity of CrystalStatement of ActivitiesYear Ended December 31, 20187.2
General Fund
EDA - Special
Revenue Debt Service
Street
Reconstruction -
Capital Projects
Assets
Cash and investments 7,604,564$ 3,357,844$ 6,062,087$ 8,249,930$
Temporarily restricted cash 68,931 - - -
Taxes receivable 147,163 7,466 6,160 6,337
Special assessments receivable 70,909 - 11,418,105 2,937,199
Accounts receivable 65,528 - - -
Accrued interest 80,784 - - -
Due from other governments 91,489 - - -
Inventories 23,941 - - -
Land held for resale - 614,000 - -
Notes receivable - - - -
Total assets 8,153,309$ 3,979,310$ 17,486,352$ 11,193,466$
Liabilities
Accounts payable 297,143$ 34,119$ -$ 12,187$
Due to other governments 227,423 - - 112,411
Salaries and benefits payable 324,504 4,457 - -
Deposits payable 68,931 2,000 - -
Contracts payable - - - 54,600
Unearned revenue 114,980 - - -
Total liabilities 1,032,981 40,576 - 179,198
Deferred Inflows of Resources
State aid related deferred inflows of resources - - - 2,405,800
Unavailable revenue - property taxes 69,082 7,400 - 6,337
Unavailable revenue - special assessments 70,800 - 11,406,987 2,930,039
Total deferred inflows of resources 139,882 7,400 11,406,987 5,342,176
Fund Balances
Nonspendable 23,941 - - -
Restricted - - 6,079,365 -
Committed 774,914 3,931,334 - 5,672,092
Assigned - - - -
Unassigned 6,181,591 - - -
Total fund balances 6,980,446 3,931,334 6,079,365 5,672,092
Total liabilities, deferred inflow of
resouces, and fund balances 8,153,309$ 3,979,310$ 17,486,352$ 11,193,466$
See notes to financial statements.32
City of Crystal
Balance Sheet - Governmental Funds
December 31, 2018
7.2
Police
Equipment
Revolving -
Capital Projects
Other
Governmental
Funds
Total
Governmental
Funds
2,838,545$ 10,396,875$ 38,509,845$
- - 68,931
- 2,588 169,714
- - 14,426,213
- 3,151 68,679
- - 80,784
- 205,328 296,817
- - 23,941
- 29,711 643,711
- 32,690 32,690
2,838,545$ 10,670,343$ 54,321,325$
26,420$ 55,709$ 425,578$
- - 339,834
- - 328,961
- - 70,931
- 38,940 93,540
- - 114,980
26,420 94,649 1,373,824
- - 2,405,800
- 2,525 85,344
- 32,690 14,440,516
- 35,215 16,931,660
- - 23,941
- 1,386,150 7,465,515
2,812,125 9,080,405 22,270,870
- 73,924 73,924
- - 6,181,591
2,812,125 10,540,479 36,015,841
2,838,545$ 10,670,343$ 54,321,325$
33
7.2
34
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7.2
City of Crystal
Reconciliation of the Balance Sheet to
the Statement of Net Position - Governmental Funds
December 31, 2018
Total fund balances - governmental funds 36,015,841$
Cost of capital assets 108,389,443
Less accumulated depreciation (49,493,737)
Certain revenues are include in net position but are excluded from fund balances
until they are available to liquidate liabilities of the current period.
Unavailable revenue relating to:
Property taxes 85,344
Special assessments 14,407,826
Notes receivable 32,690
Long-term liabilities are included in net position but are excluded from fund balances
until due and payable.
Bond principal payable (17,260,000)
Premium on debt (473,603)
Discount on debt 33,264
Interest payable (201,227)
Compensated absences payable (774,914)
Governmental funds do not report long-term amounts relating to OPEB.
Deferred outflows of resources and deferred inflows of resources are created
as a result of various differences related to pensions that are not recognized
in the governmental funds.
Deferred outflows of resources related to OPEB 138,514
Total OPEB liability (2,245,608)
Governmental funds do not report long-term amounts relating to pensions and OPEB.
Deferred outflows of resources and deferred inflows of resources are created
as a result of various differences related to pensions that are not recognized
in the governmental funds.
Deferred inflows of resources related to pensions (6,389,715)
Deferred outflows of resources related to pensions 4,723,450
Net pension liability (5,859,755)
An internal service fund is used by management to charge the costs of insurance
to individual funds. The assets and liabilities of the Self-Insurance Internal Service
Fund are included in governmental activities in the Statement of Net Position.873,372
Equity interests in underlying capital assets of joint ventures associated with
governmental funds are not reported in such funds because they do not represent
financial assets.
Equity interest in joint venture - West Metro Fire-Rescue District 1,381,904
Total net position - governmental activities 83,383,089$
See notes to financial statements.35
Amounts reported for governmental activities in the Statement of Net Position
are different because:
Capital assets used in governmental activities are not current financial
resources and, therefore, are not reported as assets in governmental funds.
7.2
General Fund
EDA - Special
Revenue Debt Service
Street
Reconstruction -
Capital Projects
Revenues
Property taxes 9,499,766$ 275,953$ -$ 163,600$
Special assessments 38,884 - 2,533,397 880,173
Licenses and permits 740,192 - - -
Intergovernmental 1,860,929 - - 1,205,684
Charges for services 818,999 115,559 - -
Fine and forfeitures 233,343 - - -
Interest 152,555 50,864 77,480 123,750
Miscellaneous 10,334 - - 13,388
Total revenues 13,355,002 442,376 2,610,877 2,386,595
Expenditures
Current
General government 2,464,910 - - -
Public safety 6,971,706 - - -
Public works 1,391,736 - - -
Culture and recreation 2,457,539 - - -
Economic development 565,170 336,095 - -
Debt service
Principal - - 1,340,000 -
Interest and other charges - - 503,808 -
Capital outlay - 20,971 - 1,130,469
Total expenditures 13,851,061 357,066 1,843,808 1,130,469
Excess of revenues over
(under) expenditures (496,059) 85,310 767,069 1,256,126
Other Financing Sources (Uses)
Proceeds from sale of capital asset 150,000 - - -
Transfers in 434,049 - - 1,696,974
Transfers out - - - -
Total other financing
sources (uses) 584,049 - - 1,696,974
Net change in fund
balances 87,990 85,310 767,069 2,953,100
Fund Balances
Beginning of year 6,892,456 3,846,024 5,312,296 2,718,992
End of year 6,980,446$ 3,931,334$ 6,079,365$ 5,672,092$
See notes to financial statements.36
City of Crystal
Statement of Revenues, Expenditures, and
Changes in Fund Balances - Governmental Funds
Year Ended December 31, 2018
7.2
Police
Equipment
Revolving -
Capital Projects
Other
Governmental
Funds
Total
Governmental
Funds
151,900$ 1,139,987$ 11,231,206$
- - 3,452,454
- - 740,192
- 574,764 3,641,377
- 1,000 935,558
- 18,389 251,732
42,693 64,200 511,542
13,214 558,830 595,766
207,807 2,357,170 21,359,827
- 115,132 2,580,042
12,053 45,133 7,028,892
- - 1,391,736
- 89,232 2,546,771
- 647,702 1,548,967
- 247,269 1,587,269
- 44,765 548,573
265,107 1,839,098 3,255,645
277,160 3,028,331 20,487,895
(69,353) (671,161) 871,932
10,787 92,500 253,287
- 8,449,455 10,580,478
- (10,078,429) (10,078,429)
10,787 (1,536,474) 755,336
(58,566) (2,207,635) 1,627,268
2,870,691 12,748,114 34,388,573
2,812,125$ 10,540,479$ 36,015,841$
37
7.2
38
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7.2
City of Crystal
Reconciliation of the Statement of Revenues,
Expenditures, and Changes in Fund Balances to
Year Ended December 31, 2018
1,627,268$
Capital outlays are reported in governmental funds as expenditures. However, in the
Statement of Activities, the cost of those assets is allocated over the estimated useful
lives as depreciation expense.
Capital outlays 3,367,249
Depreciation expense (4,053,292)
The net effect of various miscellaneous transactions involving capital assets (i.e., sales,
trade-ins, and donations) is to decrease net position. (21,316)
Revenues relating to delinquent taxes, special assessments, and notes receivable are included
in the change in net position but are excluded from the net change in fund balances until they
are available to liquidate liabilities of the current period. (2,371,745)
The issuance of long-term debt provides current financial resources to governmental funds,
while repayment of the principal of long-term debt consumes the current financial resources
of governmental funds. Neither transaction, however, has any effect on net position. Also,
governmental funds report the effect of premiums, discounts, and similar items when debt is
first issued, whereas these amounts are deferred and amortized in the Statement of Activities.
Bond principal payments and adjustments 1,340,000
Some expenses reported in the Statement of Activities do not require the use of current
financial resources and, therefore, are not reported as expenditures in governmental funds.
Amortization of bond premium 39,069
Amortization of bond discount (10,894)
Accrued interest payable 1,423
Compensated absences (20,952)
OPEB expense (46,556)
Pension costs in governmental funds are recognized when employer contributions are made.
On the Statement of Activities pension costs are recognized on the accrual basis. The
difference between actual employer contributions and accrual basis pension costs is reflected
in pension expense.
Pension expense 253,385
An internal service fund is used by management to charge the costs of insurance to individual
funds. The change in net position of the Self-Insurance Internal Service Fund is included in
governmental activities in the Statement of Net Position. (981)
Net income (loss) from equity interests is included in the change in net position but is excluded
from the change in fund balances. (308,175)
Change in net position - governmental activities (205,517)$
See notes to financial statements.39
Net change in fund balances - governmental funds
Amounts reported for governmental activities in the Statement of Activities are
different because:
the Statement of Activities - Governmental Funds
7.2
City of Crystal
Statement of Revenues, Expenditures, and
Changes in Fund Balances -
Budget and Actual - General Fund
Year Ended December 31, 2018
Budgeted Amounts
Park and recreation
Park maintenance
950,531
950,531
Actual
Variance with
Forestry
Original
Final
Amounts
Final Budget
Revenues
916,730
916,730
855,661
(61,069)
Property taxes
$ 9,489,779
$ 9,489,779
$ 9,499,766
$ 9,987
Special assessments
114,000
114,000
38,884
(75,116)
Licenses and permits
844,228
844,228
740,192
(104,036)
Intergovernmental
1,868,789
1,868,789
1,860,929
(7,860)
Charges for services
830,751
830,751
818,999
(11,752)
Fine and forfeitures
304,000
304,000
233,343
(70,657)
Interest
68,000
68,000
152,555
84,555
Miscellaneous revenues
73,080
73,080
10,334
(62,746)
Total revenues
13,592,627
13,592,627
13,355,002
(237,625)
Expenditures
General government
Mayor and council
134,941
134,941
129,834
(5,107)
Administration
1,280,065
1,280,065
1,248,286
(31,779)
Human resources
52,291
52,291
47,701
(4,590)
Assessing
281,115
281,115
293,273
12,158
Legal
80,000
80,000
54,874
(25,126)
Elections
59,989
59,989
47,104
(12,885)
Finance
402,963
402,963
472,040
69,077
City buildings
188,377
188,377
171,798
(16,579)
Total general government
2,479,741
2,479,741
2,464,910
(14,831)
Public safety
Police
5,629,175
5,629,175
5,585,252
(43,923)
Fire
1,360,507
1,360,507
1,386,454
25,947
Total fire
6,989,682
6,989,682
6,971,706
(17,976)
Public works
Engineering
401,823
401,823
401,802
(21)
Street maintenance
969,510
969,510
989,934
20,424
Total public works
1,371,333
1,371,333
1,391,736
20,403
Park and recreation
Park maintenance
950,531
950,531
885,156
(65,375)
Forestry
80,500
80,500
42,594
(37,906)
Recreation
916,730
916,730
855,661
(61,069)
Community center
405,585
405,585
401,616
(3,969)
Waterslide/swimming pool
271,783
271,783
272,512
729
Total parks and recreation
2,625,129
2,625,129
2,457,539
(167,590)
40
City of Crystal
Statement of Revenues, Expenditures, and
Changes in Fund Balances -
Budget and Actual - General Fund
Year Ended December 31, 2018
Original Final
Actual
Amounts
Expenditures (Continued)
Community development
Planning and code enforcement 83,299$ 83,299$ 85,246$ 1,947$
Building inspection 284,537 284,537 285,438 901
Housing inspection 195,255 195,255 193,917 (1,338)
Health department 8,100 8,100 569 (7,531)
Total community development 571,191 571,191 565,170 (6,021)
Total expenditures 14,037,076 14,037,076 13,851,061 (186,015)
Excess of revenues
under expenditures (444,449) (444,449) (496,059) (51,610)
Other Financing Source
Proceeds from sale of capital asset - - 150,000 150,000
Transfers in 444,449 444,449 434,049 (10,400)
Total other financing
sources (uses) 444,449 444,449 584,049 139,600
Net change in fund balances -$ -$ 87,990 87,990$
Fund Balance
Beginning of year 6,892,456
End of year 6,980,446$
See notes to financial statements.41
Budgeted Amounts Variance with
Final Budget -
Positive
7.2
42
(THIS PAGE LEFT BLANK INTENTIONALLY)
7.2
City of Crystal
Statement of Revenues, Expenditures, and
Changes in Fund Balances -
Budget and Actual - EDA - Special Revenue
Year Ended December 31, 2018
Original Final
Actual
Amounts
Revenues
Property taxes 277,200$ 277,200$ 275,953$ (1,247)$
Charges for services 10,000 10,000 (49,541) (59,541)
Investment income 35,000 35,000 50,864 15,864
Miscellaneous revenues 105,000 105,000 165,100 60,100
Total revenues 427,200 427,200 442,376 15,176
Expenditures
Current
Community development 323,970 323,970 336,095 12,125
Capital outlay 90,000 90,000 20,971 (69,029)
Total expenditures 413,970 413,970 357,066 (56,904)
Excess of revenues over
(under) expenditures 13,230$ 13,230$ 85,310 72,080$
Fund Balance
Beginning of year 3,846,024
End of year 3,931,334$
See notes to financial statements.43
Budgeted Amounts
Variance with
Final Budget
7.2
Water Sewer Storm Drainage Street Lights
Assets
Current assets
Cash and investments (including cash equivilants)1,366,637$ 2,116,511$ 1,556,505$ 602,471$
Special assessment receivable 374,595 - - -
Accounts receivable 685,805 495,220 227,425 38,095
Due from other funds - 30,000 - 30,000
Due from other governments 13,842 - - -
Inventories 26,332 18,840 3,163 -
Prepaid expenses 520 520 260 -
Total current assets 2,467,731 2,661,091 1,787,353 670,566
Noncurrent assets
Equity interest in joint venture 4,451,407 - - -
Advance to other funds - 150,000 - 150,000
Capital assets
Land 42,200 - 716,862 -
Infrastructure 3,108,306 8,065,019 13,660,414 627,483
Buildings 1,095,666 805,426 795,412 -
Office equipment - - - 16,861
Software 57,324 23,573 23,573 -
Equipment 2,212,430 1,221,593 700,870 -
Vehicles 365,070 174,342 140,787 -
Construction in progress 404,159 1,113,784 999,155 -
Total capital assets 7,285,155 11,403,737 17,037,073 644,344
Less accumulated depreciation (3,000,393) (5,138,890) (6,241,050) (296,907)
Net capital assets 4,284,762 6,264,847 10,796,023 347,437
Total noncurrent assets 8,736,169 6,414,847 10,796,023 497,437
Deferred Outflows of Resources
Pension-related deferred outflows 42,823 42,823 21,411 -
OPEB-related deferred outflows 6,610 6,588 3,294 -
Total deferred outflows of resources 49,433 49,411 24,705 -
Liabilities
Current liabilities
Accounts payable 2,913 6,081 7,937 19,549
Salaries and benefits payable 6,598 6,543 3,271 -
Deposits payable 4,250 - - -
Due to other funds 60,000 - - -
Due to other governments 214,767 5,857 2,929 -
Current compensated absences 29,130 29,130 14,565 -
Total current liabilities 317,658 47,611 28,702 19,549
Noncurrent liabilities
Compensated absences 27,088 27,088 13,544 -
Advances from other funds 300,000 - - -
Net pension liability 227,346 227,346 113,673 -
Total OPEB liability 107,172 106,805 53,400 -
Total noncurrent liabilities 661,606 361,239 180,617 -
Deferred Inflows of Resources
Pension-related deferred inflows 75,139 75,139 37,570 -
Net Position
Net investment in capital assets 4,284,762 6,264,847 10,796,023 347,437
Unrestricted 5,914,168 2,376,513 1,565,169 801,017
Total net position 10,198,930$ 8,641,360$ 12,361,192$ 1,148,454$
See notes to financial statements.44
Business-Type Activities - Enterprise Funds
City of Crystal
Statement of Net Position - Proprietary Funds
December 31, 2018
7.2
Governmental
Activities -
Internal Service
Fund
Recycling Utility Totals Self Insurance
126,355$ 5,768,479$ 932,519$
- 374,595 -
52,897 1,499,442 -
- 60,000 -
- 13,842 -
- 48,335 -
- 1,300 -
179,252 7,765,993 932,519
- 4,451,407 -
- 300,000 -
- 759,062 -
- 25,461,222 -
- 2,696,504 -
- 16,861 -
- 104,470 -
- 4,134,893 -
- 680,199 -
- 2,517,098 -
- 36,370,309 -
- (14,677,240) -
- 21,693,069 -
- 26,444,476 -
- 107,057 -
- 16,492 -
- 123,549 -
- 36,480 59,147
- 16,412 -
- 4,250 -
- 60,000 -
- 223,553 -
- 72,825 -
- 413,520 59,147
- 67,720 -
- 300,000 -
- 568,365 -
- 267,377 -
- 1,203,462 -
- 187,848 -
- 21,693,069 -
179,252 10,836,119 873,372
179,252$ 32,529,188$ 873,372$
45
Business -Type Activities - Enterprise
Funds
7.2
Water Sewer Storm Drainage Street Lights
Operating revenues
Charges for services 3,265,849$ 2,578,065$ 1,174,131$ 195,324$
Other charges 252,270 6,022 161,203 -
Miscellaneous - - - -
Total operating revenues 3,518,119 2,584,087 1,335,334 195,324
Operating expenses
Personal services 416,920 389,860 194,926 -
Other services 203,394 192,408 189,668 8,662
Supplies 63,683 58,189 6,456 -
Water purchases 2,183,123 - - -
Sewage disposal charges - 1,659,120 - -
Electric service - - - 111,422
Recycling charges - - - -
Depreciation 230,091 186,566 368,130 32,217
Insurance - - - -
Total operating expenses 3,097,211 2,486,143 759,180 152,301
Operating income (loss) 420,908 97,944 576,154 43,023
Nonoperating revenues (expenses)
Interest income 19,358 37,853 23,462 13,140
Interest expense (8,400) - - -
Net income (loss) from joint venture 128,265 - - -
Total nonoperating revenue (expenses) 139,223 37,853 23,462 13,140
Income before capital contributions and transfers 560,131 135,797 599,616 56,163
Transfers out (181,604) (181,604) (116,868) (13,805)
Change in net position 378,527 (45,807) 482,748 42,358
Net position - beginning, as previously stated 9,894,731 8,761,495 11,915,608 1,106,096
Change in accounting principle (see note 17)(74,328) (74,328) (37,164) -
Net position - beginning, as restated 9,820,403 8,687,167 11,878,444 1,106,096
End of year 10,198,930$ 8,641,360$ 12,361,192$ 1,148,454$
See notes to financial statements.46
City of Crystal
Statement of Revenues, Expenses, and Changes
in Net Position - Proprietary Funds
Year Ended December 31, 2018
7.2
Governmental
Activities -
Internal Service
Fund
Recycling Utility Totals Self Insurance
340,410$ 7,553,779$ -$
- 419,495 -
- - 9,054
340,410 7,973,274 9,054
- 1,001,706 -
47 594,179 -
- 128,328 -
- 2,183,123 -
- 1,659,120 -
- 111,422 -
335,263 335,263 -
- 817,004 -
- - 23,365
335,310 6,830,145 23,365
5,100 1,143,129 (14,311)
4,189 98,002 13,330
- (8,400) -
- 128,265 -
4,189 217,867 13,330
9,289 1,360,996 (981)
(8,168) (502,049) -
1,121 858,947 (981)
178,131 31,856,061 874,353
- (185,820) -
178,131 31,670,241 874,353
179,252$ 32,529,188$ 873,372$
47
7.2
Water Sewer Storm Drainage Street Lights
Cash Flows - Operating Activities
Receipts from customers and users 3,419,854$ 2,535,690$ 1,316,399$ 195,027$
Payments to suppliers (2,369,147) (1,894,435) (192,369) (110,392)
Payments to employees (404,984) (378,324) (189,161) -
Net cash flows - operating activities 645,723 262,931 934,869 84,635
Cash Flows - Noncapital
Financing Activities
Transfer to other funds (181,604) (181,604) (116,868) (13,805)
Net cash flows - noncapital
financing activities (181,604) (181,604) (116,868) (13,805)
Cash Flows - Capital and Related
Financing Activities
Change in advance to other funds - 30,000 - 30,000
Change in due to other funds (60,000) - - -
Change in assessments receivable (1,479) - - -
Interest paid on debt (8,400) - - -
Acquisition of capital assets - (153,745) (72,872) -
Net cash flows - capital and related
financing activities (69,879) (123,745) (72,872) 30,000
Cash Flows - Investing Activities
Interest and dividends received 19,358 37,853 23,462 13,140
Net change in cash and cash equivalents 413,598 (4,565) 768,591 113,970
Cash and cash equivalents, January 1 953,039 2,121,076 787,914 488,501
Cash and cash equivalents, December 31 1,366,637$ 2,116,511$ 1,556,505$ 602,471$
Reconciliation of Operating
Income (Loss) to Net Cash
Flows - Operating Activities
Operating income (loss)420,908$ 97,944$ 576,154$ 43,023$
Adjustments to reconcile operating
income (loss) to net cash flows -
operating activities
Depreciation expense 230,091 186,566 368,130 32,217
Accounts receivable (110,011) (48,397) (18,935) (297)
Due from other governments 11,746 - - -
Inventory 480 8,734 (55) -
Accounts payable (13,127) 2,541 1,813 9,692
Due to other governmental units 90,300 4,007 1,997 -
Salaries payable 1,590 1,535 767 -
Deposits payable 3,400 - - -
OPEB 964 619 306 -
Pension related activity 7,546 7,546 3,774 -
Compensated absences payable 1,836 1,836 918 -
Total adjustments 224,815 164,987 358,715 41,612
Net cash flows -
operating activities 645,723$ 262,931$ 934,869$ 84,635$
Noncash Capital and Related
Financing Activities
Net income (loss) from joint venture 128,265$ -$ -$ -$
See notes to financial statements.48
City of Crystal
Statement of Cash Flows - Proprietary Funds
Year Ended December 31, 2018
7.2
Recycling
Utility Totals Self Insurance
345,623$ 7,812,593$ 9,054$
(335,310) (4,901,653) 11,833
- (972,469) -
10,313 1,938,471 20,887
(8,168) (502,049) -
(8,168) (502,049) -
- 60,000 -
- (60,000) -
- (1,479) -
- (8,400) -
- (226,617) -
- (236,496) -
4,189 98,002 13,330
6,334 1,297,928 34,217
120,021 4,470,551 898,302
126,355$ 5,768,479$ 932,519$
5,100$ 1,143,129$ (14,311)$
- 817,004 -
5,213 (172,427) -
- 11,746 -
- 9,159 -
- 919 35,698
- 96,304 (500)
- 3,892 -
- 3,400 -
- 1,889 -
- 18,866 -
- 4,590 -
5,213 795,342 35,198
10,313$ 1,938,471$ 20,887$
-$ 128,265$ -$
49
7.2
Hennepin
Recycling Group
Agency Fund
Assets
Current
Cash and investments
(including cash equivalents) 1,289,199$
Due from other governments 98,521
Total assets 1,387,720$
Liabilities
Accounts payable $ 110,578
Due to other governments 1,277,142
Total liabilities 1,387,720$
See notes to financial statements. 50
City of Crystal
Statement of Fiduciary Net Position
December 31, 2018
7.2
51
City of Crystal
Notes to Financial Statements
NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
A. Reporting Entity
The City of Crystal (the City) operates under the Home Rule Charter form of government in accordance
with applicable State of Minnesota Statutes. The charter prescribes a Council-Manager form of
organization. The governing body consists of a seven-member City Council elected at large to serve
four-year staggered terms.
The accompanying financial statements present the activities of the government. Certain organizations
have been defined in accordance with GASB Statement No. 14 and are presented in this report as
follows:
1. Blended Component Units
Blended component units, although legally separate entities, are, in substance, part of the
government's operations. The City has one blended component unit which is reported as if it were
part of the City.
The Economic Development Authority (EDA), in and for the City, was created by the City to
provide housing and redevelopment assistance through the administration of various programs. It
levies taxes to provide funds for redevelopment in the City.
Although the EDA is legally separate from the City, it is reported as if it were part of the primary
government. Its governing board is comprised of the City Council members and the City has
operational responsibility of the EDA, meaning it manages the EDA's activities in essentially the
same manner in which it manages its own programs and departments. The EDA is reported as a
special revenue fund. It does not issue a separate set of financial statements.
2. Joint Ventures
A joint venture is a legal entity or other organization that results from a contractual agreement and
that is owned, operated, or governed by two or more participants as a separate and specific activity
subject to joint control. The participants retain either an ongoing financial interest or an ongoing
financial responsibility. The City participates in two joint ventures – the Golden Valley, Crystal,
New Hope Joint Water Commission, and the West Metro Fire-Rescue District. Descriptions and
other financial information for these organizations are included in the note entitled Joint Ventures
and Jointly Governed Organizations.
3. Jointly Governed Organizations
The City has several agreements with governmental and other entities that provide reduced costs,
better service, and additional benefits to participants. The various programs in which the City
participates in are described in the note entitled Joint Ventures and Jointly Governed Organizations.
B. Government-Wide and Fund Financial Statements
The government-wide financial statements (i.e. the Statement of Net Position and the Statement of
Activities) report information on all of the non-fiduciary activities of the primary government and its
component units. Governmental activities, which normally are supported by taxes and
intergovernmental revenues, are reported separately from business-type activities, which rely to a
significant extent on charges for sales and/or services and fees.
7.2
52
City of Crystal
Notes to Financial Statements
NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
B. Government-Wide and Fund Financial Statements (Continued)
Separate financial statements are provided for governmental funds, proprietary funds, and fiduciary
funds, even though the latter are excluded from the government-wide financial statements. Major
individual governmental funds and major individual enterprise funds are reported as separate columns in
the fund financial statements. Aggregated information for the remaining nonmajor governmental funds
is reported in a single column in the fund financial statements.
The Statement of Activities demonstrates the degree to which the direct expenses of a given function or
segment is offset by program revenues. Direct expenses are those that are clearly identifiable with a
specific function or segment. The City does not allocate indirect expenses. Program revenues include 1)
charges to customers or applicants who purchase, use, or directly benefit from goods, services, or
privileges provided by a given function or segment, 2) operating grants and contributions restricted to
meeting the operational requirements of a particular function, and 3) capital grants and contributions
restricted to meeting the capital requirements of a particular function, including special assessments.
Internally dedicated resources are reported as general revenues rather than as program revenues.
Likewise, general revenues include all taxes.
As a general rule, the effect of interfund activity has been eliminated from the government-wide
financial statements. However, charges between the City's enterprise funds and other functions (i.e.
interfund services provided and used) are not eliminated, as that would distort the direct costs and
program revenues reported in those functions. Depreciation expense is included in the direct expenses of
each function. Interest on long-term debt is considered an indirect expense and is reported separately
under governmental activities on the Statement of Activities.
C. Measurement Focus, Basis of Accounting, and Financial Statement Presentation
The government-wide financial statements are reported using the economic resources measurement
focus and the accrual basis of accounting, as are the proprietary fund financial statements. Revenues are
recorded when earned and expenses are recorded when a liability is incurred, regardless of the timing of
related cash flows. Property taxes are recognized as revenues in the year for which they are levied.
Grants and similar items are recognized as revenue as soon as all eligibility requirements imposed by the
provider have been met.
Governmental fund financial statements are reported using the current financial resources measurement
focus and the modified accrual basis of accounting. Revenues are recognized as soon as they are both
measurable and available. "Measurable" means the amount of the transaction can be determined and
"available" means collectible within the current period or soon enough thereafter to be used to pay
liabilities of the current period.
For this purpose, the City considers revenues to be available if they are collected within 60 days after
year-end. Major revenues susceptible to accrual include property taxes, special assessments,
intergovernmental revenues, charges for services, and investment earnings. Major revenues not
susceptible to accrual include licenses, permits, inspection fees, and miscellaneous revenues. Such
revenues are recorded only as received because they are not measurable until collected. Issuance of
bonds and proceeds from sale of property and equipment are reported as other financing sources.
7.2
53
City of Crystal
Notes to Financial Statements
NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
C. Measurement Focus, Basis of Accounting, and Financial Statement Presentation (Continued)
Expenditures generally are recorded when a liability is incurred, as under accrual accounting. However,
debt service expenditures, as well as expenditures related to compensated absences and claims and
judgments, are recorded only when payment is due.
Proprietary funds distinguish operating revenues and expenses from non-operating items. Operating
revenues and expenses generally result from providing services and producing and delivering goods in
connection with a proprietary fund's principal ongoing operations. The principal operating revenues of
the enterprise funds and of the government's internal service fund are charges to customers for sales and
services. Operating expenses for enterprise funds and the internal service fund include the cost of sales
and services, administrative expenses, and depreciation on capital assets. All revenues and expenses not
meeting this definition are reported as non-operating revenues and expenses.
The City's fiduciary funds include an agency fund. Agency funds are custodial in nature (assets equal
liabilities), do not involve measurement of results of operations, and use accrual accounting.
When both restricted and unrestricted resources are available for use, it is the government's policy to use
restricted resources first, then unrestricted resources as they are needed.
Description of Funds:
The government reports the following major governmental funds:
General Fund – This is the government's primary operating fund. It accounts for all financial
resources of the general government, except those required to be accounted for in another fund.
EDA – Special Revenue – This blended component unit is used to account for the City's housing and
redevelopment activities. Significant revenue sources include property taxes, intergovernmental
revenues, and charges for sales.
Debt Service – This fund accounts for resources accumulated, and payments made, for principal and
interest on long-term general obligation debt and tax increment revenue notes of governmental
funds.
Street Reconstruction – Capital Projects – This fund is used to account for ongoing street
reconstruction projects in the City. The City has been divided into a total of sixteen reconstruction
phases.
7.2
54
City of Crystal
Notes to Financial Statements
NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
C. Measurement Focus, Basis of Accounting, and Financial Statement Presentation (Continued)
Description of Funds: (Continued)
Police Equipment Revolving – Capital Projects – This fund is used to account for capital
acquisitions of the City's police department. The fund was initially funded by a 1999 refund of the
City's proportionate share of residual assets in the overfunded PERA police consolidation account,
which was merged with the PERA Police and Fire Fund. Financing sources may include property
taxes, grants, interest, and proceeds from sale of equipment.
The government reports the following major proprietary funds:
Water – This fund accounts for the provision of water to residents and customers of the City. The
cities of Crystal, Golden Valley, and New Hope established a joint water commission in 1963 to
provide for the creation and maintenance of a joint water supply, storage, and distribution system
through which water purchased from the City of Minneapolis can be supplied to the population of
the member cities.
Sanitary Sewer – This fund accounts for the collection and pumping of sanitary sewage through a
system of sewer lines and lift stations. Sewage is treated by Metropolitan Council Environmental
Services (MCES).
Storm Drainage – This fund accounts for the operation, maintenance, and improvement of the City's
storm drainage system.
Street Lights – This fund accounts for the operation, maintenance, and improvement of the City's
street lights.
Recycling – This fund accounts for the provision of recycling services to residents and customers of
the City. Recycling services are provided by Hennepin Recycling Group (HRG).
Additionally, the government reports the following fund types:
An Internal Service Fund is used to account, on a cost-reimbursement basis, for the financing of
uninsured risks of loss (self-insurance). Charges are made to various funds of the City to recoup
insurance premiums and claims paid.
The Agency Fund accounts for the collection, recycling, and disposal of solid waste activities of
Hennepin Recycling Group (HRG), a jointly-governed organization in which the City participates.
D. Assets, Liabilities, Deferred Outflows/Inflows of Resources, and Net Position or Equity
1. Deposits and Investments
The City's cash and cash equivalents are considered to be change funds, demand deposits, and short-term
investments with original maturities of three months or less from the date of acquisition.
7.2
55
City of Crystal
Notes to Financial Statements
NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
D. Assets, Liabilities, Deferred Outflows/Inflows of Resources, and Net Position or Equity
(Continued)
1. Deposits and Investments (Continued)
Cash balances from all funds are combined and invested to the extent available in authorized
investments (refer to note entitled Deposits and Investments). Earnings from such investments are
allocated to respective funds on the basis of applicable cash balance participation by each fund.
Certain investments for the City are reported at fair value as disclosed in Note 2. The City
categorizes its fair value measurements within the fair value hierarchy established by generally
accepted accounting principles. The Hierarchy is based on the valuation inputs used to measure the
fair value of the asset. Level 1 inputs are quoted prices in active markets for identical assets; Level 2
inputs are significant other observable inputs; Level 3 inputs are significant unobservable inputs.
In accordance with GASB Statement No. 79, the Minnesota Municipal Investment Pool securities
are valued at amortized cost, which approximates fair value. There are no restrictions or limitations
on withdrawals from the 4M Liquid Asset Fund. Investments in the 4M Plus must be deposited for a
minimum of 14 calendar days. Withdrawals prior to the 14-day restriction period will be subject to a
penalty equal to seven days interest on the amount withdrawn. Seven days' notice of redemption is
required for withdrawals of investments in the 4M Term Series withdrawn prior to the maturity date
of that series. A penalty could be assessed as necessary to recoup the Series for any charges, losses,
and other costs attributable to the early redemption.
2. Temporarily Restricted Cash
A portion of Cash is reported as temporarily restricted in an amount equal to the balance reported in
Deposits Payable of the General Fund. The amount represents funds collected as surety on site
improvements in progress within the City. Once site improvements have been satisfactorily
completed in accordance with terms of individual agreements, individual amounts will be released.
3. Receivables
All utility and miscellaneous accounts receivable are reported gross. Since most uncollectible
accounts are able to be certified to Hennepin County for collection with property taxes, no allowance
for uncollectible accounts has been provided.
4. Property Taxes
Property tax levies are set by the City Council in December of each year and are certified to
Hennepin County for collection in the following year. In Minnesota, counties act as collection agents
for all property taxes.
The County spreads all levies over taxable property. Such taxes become a lien on January 1.
Revenues are accrued and recognized in the year collectible, net of delinquencies.
7.2
56
City of Crystal
Notes to Financial Statements
NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
D. Assets, Liabilities, Deferred Outflows/Inflows of Resources, and Net Position or Equity
(Continued)
4. Property Taxes (Continued)
Real property taxes may be paid by taxpayers in two equal installments by May 15 and October 15
of each year. Personal property taxes may be paid by February 28 and June 30 of each year. The
County provides tax settlements to cities and other taxing districts three times a year – in July,
December, and January of the following year.
In the fund financial statements, taxes that remain unpaid at December 31 are classified as
delinquent taxes receivable. They are fully offset by a deferred inflow of resources because they are
not known to be available to finance current expenditures.
5. Special Assessments
In accordance with state statutes, special assessments are levied against benefited properties for the
assessable costs of improvement projects. The City normally adopts an assessment roll at the time an
individual project is started. Assessments are collectible over a term of years generally consistent
with the term of years of the related bond issue. The County handles collection of annual
installments, including interest, in the same manner as property taxes. Property owners are allowed
to prepay total future installments without interest or prepayment penalties.
In the fund financial statements, special assessments receivable include the following components,
and are offset by a deferred inflow of resources:
Delinquent – amounts billed to property owners but not yet paid
Deferred – installments that will be billed to property owners in future years.
6. Inventories
Fuel inventory recorded in the General Fund and parts inventories recorded in the enterprise funds
are valued at cost using the first-in/first-out (FIFO) method. The cost of inventories is recorded using
the consumption method, where costs are recorded as expenditures/expenses when consumed rather
than when purchased.
7. Prepaid Items
Prepaid items in the government-wide and fund financial statements reflect costs paid to vendors
that are applicable to future accounting periods. The cost of prepaid items is recorded using the
consumption method, where costs are recorded as expenditures when consumed rather than when
purchased.
8. Land Held for Resale
The Crystal EDA acquires properties for redevelopment purposes. Land held for resale is reported as
an asset at its net realizable value in the EDA Special Revenue Fund. Any costs incurred that are
above a property's net realizable value are reported as expenditures of the current period.
7.2
57
City of Crystal
Notes to Financial Statements
NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
D. Assets, Liabilities, Deferred Outflows/Inflows of Resources, and Net Position or Equity
(Continued)
9. Interfund Receivables and Payables
Activities between funds that are representative of lending and borrowing arrangements are referred
to at year-end as advances to/from other funds. The current and noncurrent portions are reported on
the Statement of Fund Net Position for the proprietary funds.
All other outstanding balances between funds are reported as due to/from other funds.
10. Capital Assets
Capital assets, both tangible and intangible, which include land, buildings, and structures,
improvements other than buildings, machinery and equipment, office equipment and furnishings,
software, vehicles and trailers, and infrastructure (utility systems, traffic and transportation systems,
and park systems) are reported in the applicable governmental or business-type activities columns in
the government-wide financial statements.
With the initial capitalization of infrastructure assets of governmental activities, as required by the
implementation of GASB Statement No. 34, the City chose to include all such items, regardless of
acquisition date. Historical costs were available from an independent, city-wide asset valuation that
had been completed in 1992, as well as from contractor invoices for street reconstruction projects
completed subsequent to 1992.
Tangible and intangible capital assets are defined by the City as assets with an initial, individual cost
of more than $5,000 and an estimated useful life in excess of one year. Such assets are recorded at
historical cost or estimated historical cost if purchased or constructed. Donated capital assets are
recorded at acquisition value at the date of donation.
The costs of normal maintenance and repairs that do not add to the value of assets or materially
extend asset lives are not capitalized. Interest is not being capitalized on construction projects.
Tangible and intangible capital assets of the City are depreciated using the straight-line, mid-month
convention. In instances in which estimated useful lives have been revised to more closely
approximate historical experience, depreciation is calculated by taking the net remaining value over
the remaining life (prospectively). Estimated useful lives are as follows:
Years
Buildings and structures 5-50
Improvements other than buildings 5-40
Machinery and equipment 5-30
Office equipment and furnishings 5-20
Software 5
Vehicles and trailers 3-12
Infrastructure
Utility systems 25-75
Traffic and transportation systems 10-30
Park systems 15-20
Classification
7.2
58
City of Crystal
Notes to Financial Statements
NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
D. Assets, Liabilities, Deferred Outflows/Inflows of Resources, and Net Position or Equity
(Continued)
11. Fund Balance Classifications
In the fund financial statements, governmental funds report fund balance in classifications that
disclose constraints for which amounts in those funds can be spent. Classifications of fund balance
that will be used are as follows:
Nonspendable – These are resources that cannot be spent because they are either not readily
convertible to cash or are legally or contractually required to be maintained intact. Examples
include money held in escrow, prepaid amounts, land held for resale, and long-term loans or
notes receivable.
Restricted – These are resources whose spending is constrained externally by creditors or by
laws and regulations of another government. Examples include grants, intergovernmental
revenues, and resources in debt service funds that include a legally enforceable requirement that
those resources be spent only for specific purposes.
Committed – These are resources that can only be used for specific purposes established by the
City Council. Establishment of these specific purposes must be done by a resolution adopted by
the City Council and may only be changed or removed by a resolution adopted by the City
Council.
Assigned – These are resources that the City intends to be used for specific purposes but are
neither restricted nor committed. Assigned fund balances are established by a motion of the City
Council. The City Council may also delegate this authority to the City Manager, who may act
upon recommendation of the Finance Director.
Unassigned – These are resources that are available for any purpose of the fund. Amounts
identified as cash flow resources are classified as unassigned. Only the General Fund may have a
positive unassigned fund balance. A deficit fund balance in any fund must be classified as an
unassigned fund balance.
When multiple classifications of resources are available for use, it is the City's policy to first use
restricted resources if permitted, then committed, assigned, or unassigned resources. It is the City's
policy to retain in fund balance resources that have the lowest level of constraints possible.
The City Council has formally adopted a policy regarding the minimum unassigned fund balance for
the General Fund. The most significant revenue source of the General Fund is property taxes. This
revenue source is received in two installments during the year – July and December. As such, it is
the City's goal to begin each fiscal year with sufficient cash flow reserves to fund operations
between each semi-annual receipt of property taxes.
7.2
59
City of Crystal
Notes to Financial Statements
NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
D. Assets, Liability, Deferred Outflows/Inflows of Resources, and Net Position or Equity
(Continued)
11. Fund Balance Classifications (Continued)
The policy states that when fund balance at the end of a year exceeds non-spendable fund balance,
restricted fund balance, liability for compensated absences of employees, assigned fund balance, and
45% of the subsequent year's budget, the City Council shall consider transferring at least 25% of the
excess fund balance to one of the capital project funds. At any time during the year the City Council
may consider transferring any or all of the excess fund balance to any other fund of the City, as
needed.
12. Compensated Absences
The City compensates all employees for unused vacation hours upon termination. Eligible
employees are compensated for accrued compensatory hours upon termination. Employees
terminating their employment with the City after ten or more continuous years of service are
compensated for 40% of their accumulated sick leave hours at their current base hourly rate of pay.
The maximum amount of accrued sick leave hours that may be converted is 960.
Accumulated or vested vacation, compensatory, and sick time estimated to be payable as termination
pay is accrued as incurred in the government-wide and proprietary fund financial statements. A
liability for these amounts is reported in governmental funds only if they have matured, for example,
as a result of employee resignations and retirements.
13. Long-Term Obligations
In the government-wide financial statements and in the proprietary fund types in fund financial
statements, long-term debt, and other long-term obligations are reported as liabilities in the
applicable governmental activities, business-type activities, or proprietary fund type Statement of
Net Position. Bond premiums and discounts are deferred and amortized over the life of bonds using
the straight-line method. Bonds payable are reported net of the applicable bond premium or
discount. Debt issuance costs are recognized as expense in the period incurred.
In the fund financial statements, governmental fund types recognize bond premiums, discounts, and
issuance costs during the current period. The face amount of debt issued is reported as other
financing sources. Premiums received on debt issuances are reported as other financing sources
while discounts on debt issuances are reported as other financing uses. Issuance costs, whether or
not withheld from the actual debt proceeds received, are reported as debt service expenditures.
7.2
60
City of Crystal
Notes to Financial Statements
NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
D. Assets, Liabilities, Deferred Outflows/Inflows of Resources, and Net Position or Equity
(Continued)
14. Deferred Outflows of Resources
In addition to assets, the statement of financial position will sometimes report a separate section for
deferred outflows of resources. This separate financial statement element represents a consumption
of net position that applies to a future period(s) and so will not be recognized as an outflow of
resources (expense/expenditure) until that time. The City has one item that qualifies for reporting in
this category. The City presents deferred outflows of resources on the Statement of Net Position for
deferred outflows of resources related to pensions and OPEB for various estimate differences that
will be amortized and recognized over future years.
15. Deferred Inflows of Resources
In addition to liabilities, the statement of financial position and fund financial statements will
sometimes report a separate section for deferred inflows of resources. This separate financial
statement element represents an acquisition of net position that applies to a future period(s) and so
will not be recognized as an inflow of resources (revenue) until that time.
The City has three items that qualify for reporting in this category: 1) The City presents deferred
inflows of resources on the Governmental Fund Balance Sheet as unavailable revenue. The
governmental funds report unavailable revenues from three sources, including property taxes,
special assessments, and notes receivable. These amounts are deferred and recognized as an inflow
of resources in the period that the amounts become available. 2) The City presents deferred inflows
of resources on the Statement(s) of Net Position for pension-related deferred inflows of resources.
Pension-related deferred inflows of resources result from the net difference between projected and
actual earnings on plan investments for the Public Employees Retirement Association of Minnesota
(PERA). 3) At the fund level and government-wide level, grants received for subsequent years are
presented as deferred inflows of resources.
16. Pensions
For purposes of measuring the net pension liability, deferred outflows/inflows of resources, and
pension expense, information about the fiduciary net position of the Public Employees Retirement
Association of Minnesota (PERA) and additions to/deductions from PERA's fiduciary net position
have been determined on the same basis as they are reported by PERA, except that PERA's fiscal
year end is June 30. For this purpose, plan contributions are recognized as of employer payroll paid
dates and benefit payments and refunds are recognized when due and payable in accordance with the
benefit terms. Investments are reported at fair value.
17. Statement of Cash Flows
For purpose of the Statement of Cash Flows, the City considers all highly liquid debt instruments
with an original maturity from the time of purchase by the City of three months or less to be cash
equivalents. The proprietary fund's equity in the government-wide cash and investment management
pool is considered to be cash equivalents.
7.2
61
City of Crystal
Notes to Financial Statements
NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
D. Assets, Liabilities, Deferred Outflows/Inflows of Resources, and Net Position or Equity
(Continued)
18. Budgets and Budgetary Accounting
The City follows these procedures in establishing the budgetary data reflected in the financial
statements:
Prior to each September 15, the City Manager submits to the City Council proposed
operating budgets for the fiscal year commencing the following January. The operating
budgets include proposed expenditures and the means of financing them.
In November, the County mails individual property tax notices to residents showing the taxes
that would result from the proposed budgets of all taxing units within the City.
Prior to proposed budgets being approved, public hearings are conducted to obtain taxpayer
comments.
In December, final budgets are legally enacted by the City Council through passage of a
resolution.
During the budget year, the City Council must authorize any transfer of budgeted amounts
between departments within the General Fund. City management may authorize a transfer of
budgeted amounts within individual departments without obtaining approval from the City
Council.
Supplemental appropriations during the year may only be made by the City Council. These
amounts must be financed by funds from the contingency reserve set up in the General Fund
or by additional revenues.
All budget amounts lapse at the end of the year to the extent they have not been expended.
Budgets are adopted on a basis consistent with accounting principles generally accepted in
the United States of America. The City budgets for its General Fund, EDA Special Revenue
Fund, TIF Special Revenue Fund, and the following capital projects funds, Major Building,
Police Revolving, and PIR. The budgets are adopted on a modified accrual basis.
Budgetary control is maintained at the department level for the General Fund and at the fund
level for all other funds that adopt annual budgets. City management must request approval
from the City Council before exceeding budget at the applicable level.
7.2
62
City of Crystal
Notes to Financial Statements
NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
D. Assets, Liabilities, Deferred Outflows/Inflows of Resources, and Net Position or Equity
(Continued)
19. Net Position
Net position represents the difference between assets and deferred outflows of resources and
liabilities and deferred inflows of resources in the government-wide financial statements. The net
investment in capital assets portion of net position consists of capital assets, net of accumulated
depreciation, reduced by the outstanding balance of any long-term debt used to build or acquire the
capital assets. Net position are reported as restricted in the government-wide financial statements
when there are limitations imposed on their use through external restrictions imposed by creditors,
grantors, or laws or regulations of other governments.
20. Use of Estimates
The preparation of financial statements in conformity with accounting principles generally accepted
in the United States of America requires management to make estimates and assumptions that affect
the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the
date of the financial statements. Estimates also affect the reported amounts of revenue and
expenditures/expense during the reporting period. Actual results could differ from those estimates.
NOTE 2 – DEPOSITS AND INVESTMENTS
A. Deposits
In accordance with Minnesota Statutes, the City maintains deposits at national or state banks within the
state, as authorized by the City Council. The following is considered to be the most significant risk
associated with deposits:
Custodial Credit Risk: In the case of deposits, this is the risk that in the event of a bank failure, the
deposits may be lost.
Minnesota Statutes require that all City deposits be protected by federal deposit insurance, corporate
surety bond, or collateral. The market value of collateral pledged must equal 110% of the deposits not
covered by federal deposit insurance or corporate surety bonds. Authorized collateral includes treasury
bills, notes, and bonds; issues of U.S. government agencies; general obligations rated "A" or better;
revenue obligations rated "AA" or better; irrevocable standard letters of credit issued by the Federal
Home Loan Bank; and certificates of deposit. Minnesota Statutes require that securities pledged as
collateral be held in safekeeping in a restricted account at the Federal Reserve Bank or in an account at a
trust department of a commercial bank or other financial institution that is not owned or controlled by
the financial institution furnishing the collateral. During the year, all deposits and investments were
collateralized in accordance with these provisions. The City has no additional deposit policies
addressing custodial credit risk for deposits.
At year-end, the City's carrying amount of deposits was $659,850 and the bank balance was $827,743.
All of the bank balance was covered by FDIC insurance or collateralized by pledged collateral held in
the City's name at the Federal Reserve Bank.
7.2
63
City of Crystal
Notes to Financial Statements
NOTE 2 – DEPOSITS AND INVESTMENTS (CONTINUED)
A. Deposits (Continued)
The City's policy is to comply with Minnesota Statutes, which require that all deposits be protected by
federal deposit insurance, corporate surety bond, or collateral. The market value of collateral pledged
must equal 110% of the deposits not covered by federal deposit insurance or corporate surety bonds.
Minnesota Statutes require that securities pledged as collateral be held in safekeeping by the City
Treasurer or in a financial institution other than that furnishing the collateral.
B. Investments
The City has a formal investment policy to establish guidelines for the prudent investment of City funds.
Funds of the City will be invested in compliance with the provisions of Minnesota Statutes Chapter
118A. Allowable investments include the following:
Bonds, notes, bills, mortgages, and other securities that are direct obligations or are guaranteed or
insured issues of the United States, its agencies, instrumentalities, or organizations created by
Congress.
State and local securities, including:
o any security that is a general obligation of any state or local government with taxing powers and
is rated "A" or better by a national bond rating agency
o any security that is a revenue obligation of any state or local government with taxing powers and
is rated "AA" or better by a national bond rating agency
Commercial paper issued by United States corporations or their Canadian subsidiaries that is rated in
the highest quality category by at least two nationally recognized rating agencies and that matures in
270 days or less.
Time deposits that are fully insured by the Federal Depository Insurance Corporation.
Bankers' acceptances of United States banks.
Money market mutual funds.
Government investment pools, including the Minnesota Municipal Money Market Fund.
As of December 31, 2018, the City had the following investments and maturities:
Fair Less than Greater than
Value One Year 1-5 Years 6-10 Years 10 Years
Brokered certificates of deposit 7,949,342$ 1,953,092$ 5,996,250$ -$ -$
Government securities 16,418,266 2,007,410 14,410,856 - -
State and local government bonds 2,093,042 - 2,093,042 - -
Money market accounts 19,446,729 19,446,729 - - -
Total 45,907,379$ 23,407,231$ 22,500,148$ -$ -$
Investment Maturities
Investment Type
7.2
64
City of Crystal
Notes to Financial Statements
NOTE 2 – DEPOSITS AND INVESTMENTS (CONTINUED)
B. Investments (Continued)
Interest Rate Risk: This is the risk of potential variability in the fair value of fixed rate investments
resulting from changes in interest rates (the longer the period for which an interest rate is fixed, the
greater the risk). The City's investment policy states that "the City will minimize Interest Rate Risk by
structuring the investment portfolio so that securities mature to meet cash requirements for ongoing
operations."
Credit Risk: This is the risk that an issuer or other counterparty to an investment will not fulfill its
obligations. This risk is addressed by confining investments to those securities specifically authorized
by state statute and the City's investment policy. As of December 31, 2018, the City's investments in
U.S. Agencies were rated AA+ by Standard and Poor's. The City's investments in G.O. state and local
government bonds were rated AAA by Standard and Poor's. The City's investments in certificates of
deposit were covered by FDIC insurance.
Custodial Credit Risk: For investments, this is the risk that in the event of a failure of the counterparty to
an investment transaction (typically a broker-dealer) the City would not be able to recover the value of
its investments that are in the possession of an outside party. The City's investment policy states that the
bank or broker is required to have insurance through FDIC and SIPC or transfer the security to a
custodian bank.
Concentration of Credit Risk: This is the risk associated with investing a significant portion of the City's
investments (considered to be 5% or more) in the securities of a single issuer. The City's investment
policy does not limit investments in any one issuer. At December 31, 2018, no investment exceeded 5%
of the City's total investments.
The City has the following recurring fair value measurements as of December 31, 2018:
$26,460,650 of investments are valued using a matrix pricing model (Level 2 inputs)
7.2
65
City of Crystal
Notes to Financial Statements
NOTE 2 – DEPOSITS AND INVESTMENTS (CONTINUED)
B. Investments (Continued)
The following summary reconciles cash and investments to the financial statements:
Cash on hand 1,744$
Carrying amount of deposits 659,850
Carrying amount of investments 45,907,379
Total 46,568,973$
Total cash and investments
Per Statement of Net Position
Cash and investments 45,210,843$
Temporarily restricted cash 68,931
Per Statement of Changes in Assets and Liabilities
Agency Fund: Hennepin Recycling Group
Cash and investments 1,289,199
Total 46,568,973$
NOTE 3 – INTERFUND RECEIVABLES AND PAYABLES
Advances to/from Other Funds
Balances as of December 31, 2018, are as follows:
Original Amount Due Within
Receivable Fund Payable Fund Amount Outstanding One Year
Sanitary Sewer Water 300,000$ 180,000$ 30,000$
Street Lights Water 300,000 180,000 30,000
Total 600,000$ 360,000$ 60,000$
Amounts payable to the Sanitary Sewer and Street Lights funds relate to loans made to help pay for the
City's share of three new emergency water supply wells. The wells will be owned by the Joint Water
Commission (refer to Note 15). The City's share of the total cost will be approximately $1,200,000. The
Water Fund has sufficient resources to pay for half of the project and the interfund loans will provide
cash for the balance. Interest at the rate of 2% will be paid on the loans over a ten-year period, from
2015-2024. To provide the Water Fund with revenue to replenish its cash reserves and repay the loans, a
charge for service of $0.21/thousand gallons of water used has been approved and implemented.
7.2
66
City of Crystal
Notes to Financial Statements
NOTE 4 – INTERFUND TRANSFERS
Interfund transfers for the year ended December 31, 2018, are as follows:
Non-major
Street Governmental
Transfers Out General Reconstruction Funds Total
Non-major governmental funds -$ 1,696,974$ 8,381,455$ 10,078,429$
Water 181,604 - - 181,604
Sanitary Sewer 181,604 - - 181,604
Storm Drainage 48,868 - 68,000 116,868
Street Lights 13,805 - - 13,805
Recycling 8,168 - - 8,168
Total 434,049$ 1,696,974 8,449,455$ 10,580,478$
Transfers In
Transfers are used to 1) move revenues from the fund that statute or budget requires to collect them to
the fund that statute or budget requires to expend them, 2) assist with capital needs and 3) create and
close funds.
7.2
67
City of Crystal
Notes to Financial Statements
NOTE 5 – CAPITAL ASSETS
Capital asset activity for the year ended December 31, 2018, was as follows:
Beginning Ending
Balance Increases Decreases Balance
Governmental activities
Capital assets not being depreciated
Land 6,860,536$ -$ -$ 6,860,536$
Construction in progress 4,482,182 2,347,168 - 6,829,350
Total capital assets
not being depreciated 11,342,718 2,347,168 - 13,689,886
Capital assets being depreciated
Buildings and structures 17,446,812 - (516,082) 16,930,730
Improvements other than buildings 5,956,479 64,260 (18,356) 6,002,383
Machinery and equipment 3,915,140 693,166 (425,775) 4,182,531
Office equipment and furnishings 844,019 59,858 - 903,877
Software 199,039 9,428 - 208,467
Vehicles and trailers 2,763,470 193,369 (53,728) 2,903,111
Traffic and transportation systems 63,368,091 - - 63,368,091
Park systems 200,367 - - 200,367
Total capital assets
being depreciated 94,693,417 1,020,081 (1,013,941) 94,699,557
Less accumulated depreciation for
Buildings and structures (7,676,450) (534,984) 516,082 (7,695,352)
Improvements other than buildings (3,332,370) (199,673) 18,356 (3,513,687)
Machinery and equipment (2,346,125) (251,968) 411,851 (2,186,242)
Office equipment and furnishings (427,405) (74,486) - (501,891)
Software (141,884) (39,808) - (181,692)
Vehicles and trailers (1,626,416) (282,068) 46,336 (1,862,148)
Traffic and transportation systems (30,754,205) (2,660,002) - (33,414,207)
Park systems (128,215) (10,303) - (138,518)
Total accumulated
depreciation (46,433,070) (4,053,292) 992,625 (49,493,737)
Total capital assets being
depreciated, net 48,260,347 (3,033,211) (21,316) 45,205,820
Governmental activities capital
position, net 59,603,065$ (686,043)$ (21,316)$ 58,895,706$
7.2
68
City of Crystal
Notes to Financial Statements
NOTE 5 – CAPITAL ASSETS (CONTINUED)
Capital asset activity for the year ended December 31, 2018, was as follows:
Beginning Ending
Balance Increases Decreases Balance
Business-type activities
Capital assets not being depreciated
Land 759,062$ -$ -$ 759,062$
Improvements other than buildings 187,246 - - 187,246
Construction in progress 2,444,227 72,871 - 2,517,098
Total capital assets not
being depreciated 3,390,535 72,871 - 3,463,406
Capital assets being depreciated
Buildings and structures 2,696,505 - - 2,696,505
Improvements other than buildings 16,861 - - 16,861
Machinery and equipment 3,981,146 153,747 - 4,134,893
Software 104,470 - - 104,470
Vehicles and trailers 680,199 - - 680,199
Utility systems 23,910,474 - - 23,910,474
Traffic and transportation systems 1,363,501 - - 1,363,501
Total capital assets
being depreciated 32,753,156 153,747 - 32,906,903
Less accumulated depreciation for
Buildings and structures (305,926) (52,793) - (358,719)
Improvements other than buildings (9,765) (843) - (10,608)
Machinery and equipment (1,612,899) (231,195) - (1,844,094)
Software (40,276) (20,892) - (61,168)
Vehicles and trailers (356,696) (45,640) - (402,336)
Utility systems (11,279,749) (434,267) - (11,714,016)
Traffic and transportation systems (254,925) (31,374) - (286,299)
Total accumulated
depreciation (13,860,236) (817,004) - (14,677,240)
Total capital assets being
depreciated, net 18,892,920 (663,257) - 18,229,663
Business-type activities
capital assets, net 22,283,455$ (590,386)$ -$ 21,693,069$
7.2
69
City of Crystal
Notes to Financial Statements
NOTE 5 – CAPITAL ASSETS (CONTINUED)
Depreciation expense was charged to the various functions of the City as follows:
Governmental activities
General government 203,019$
Public safety 241,304
Public works 3,162,575
Parks and recreation 443,771
Community development 2,623
Total depreciation expense - governmental activities 4,053,292$
Business-type activities
Water 230,091$
Sanitary sewer 186,566
Storm drainage 368,130
Street light 32,217
Total depreciation expense - business-type activities 817,004$
NOTE 6 – LONG-TERM DEBT
A. General Obligation Bonds
The government issues general obligation (G.O.) bonds (including certificates of indebtedness), tax
increment bonds, and special assessment bonds to provide funding for the acquisition of capital assets,
tax increment projects, and street improvements, respectively. G.O. bonds are direct obligations and
pledge the full faith and credit of the government.
B. Components of Long-Term Liabilities
Issue Interest Original Final Balance
Date Rates Issue Maturity End of Year
Governmental activities
Special Assessment Bonds
G.O. Improvement Bonds, Series 2008A 08/01/08 3.50%-4.35% 2,190,000$ 02/01/24 760,000$
G.O. Improvement Bonds, Series 2009A 08/01/09 2.00%-4.50% 3,360,000 02/01/25 1,845,000
G.O. Improvement Bonds, Series 2011A 08/01/11 0.50%-3.55% 1,705,000 02/01/27 910,000
G.O. Improvement Bonds, Series 2012A 08/01/12 1.50%-2.13% 2,635,000 02/01/28 1,615,000
G.O. Improvement Bonds, Series 2013A 08/01/13 2.00%-3.50% 3,235,000 02/01/29 2,285,000
G.O. Improvement Bonds, Series 2015A 08/01/15 2.50%-3.00% 2,550,000 02/01/31 2,130,000
G.O. Improvement Bonds, Series 2016A 08/25/16 2.00%-2.50% 3,330,000 02/01/32 3,050,000
G.O. Improvement Bonds, Series 2017A 09/14/17 2.00%-3.00% 4,665,000 02/01/33 4,665,000
Total governmental activities 17,260,000$
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City of Crystal
Notes to Financial Statements
NOTE 6 – LONG-TERM DEBT (CONTINUED)
C. Changes in Long-Term Liabilities
Interest paid on most of the debt issued by the City is exempt from federal income tax. As a result,
purchasers of this debt are willing to accept lower interest rates than they would on taxable debt. The
City pools the proceeds of bond issues held in construction funds and the accumulated cash in debt
service funds with all other available cash and invests it according to the City's cash management
policies and practices. This sometimes produces a higher yield on the investments than is being paid on
the related debt. The federal tax code refers to this higher yield as arbitrage. Under certain
circumstances the earnings from these higher yields must be rebated to the federal government. Federal
law requires that arbitrage be calculated and rebated at the end of each five-year period that tax exempt
debt is outstanding, as well as at maturity. The City does not report arbitrage until the liability is due and
payable.
Long-term liability activity for the year ended December 31, 2018 was as follows:
Retirements
Beginning and Other Ending Due Within
Balance Additions Reductions Balance One Year
Governmental activities
Bonds payable
G.O. Special Assessment Bonds
with Government Commitment
Improvement Bonds - 2008A 900,000$ -$ (140,000)$ 760,000$ 135,000$
Improvement Bonds - 2009A 2,020,000 - (175,000) 1,845,000 170,000
Improvement Bonds - 2011A 1,030,000 - (120,000) 910,000 115,000
Improvement Bonds - 2012A 1,805,000 - (190,000) 1,615,000 185,000
Improvement Bonds - 2013A 2,525,000 - (240,000) 2,285,000 235,000
Improvement Bonds - 2015A 2,325,000 - (195,000) 2,130,000 190,000
Improvement Bonds - 2016A 3,330,000 - (280,000) 3,050,000 255,000
Improvement Bonds - 2017A 4,665,000 - - 4,665,000 415,000
18,600,000 - (1,340,000) 17,260,000 1,700,000
Bond premiums 512,673 - (39,070) 473,603 -
Bond discounts (44,159) - 10,895 (33,264) -
Subtotal 19,068,514 - (1,368,175) 17,700,339 1,700,000
Total bonds payable 19,068,514 - (1,368,175) 17,700,339 1,700,000
Compensated absences payable 753,962 916,850 (895,898) 774,914 377,145
Governmental activity
long-term liabilities 19,822,476$ 916,850$ (2,264,073)$ 18,475,253$ 2,077,145$
Business-type activities
Compensated absences payable 135,955$ 91,005$ (86,415)$ 140,545$ 72,825$
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City of Crystal
Notes to Financial Statements
NOTE 6 – LONG-TERM DEBT (CONTINUED)
D. Minimum Debt Payments
Minimum annual principal and interest payments required to retire long-term liabilities:
Year Ending
December 31, Principal Interest
2019 1,700,000$ 462,490$
2020 1,575,000 422,078
2021 1,540,000 382,211
2022 1,495,000 341,240
2023 1,470,000 298,924
2024-2028 6,375,000 905,506
2029-2033 3,105,000 178,181
Total 17,260,000$ 2,990,630$
G.O. Improvement Bonds
Governmental Activities
Total delinquent special assessments receivable for all funds for the years ending December 31, 2018
and 2017, were $266,203 and $225,791, respectively.
Compensated absences are liquidated by the General, EDA, Water, Sanitary Sewer, or Storm Drainage
funds, depending upon where employees' time is assigned.
NOTE 7 – TAX INCREMENT FINANCING REVENUE NOTES
The City has entered into a private redevelopment agreement regarding certain tax increment properties.
Reimbursements for this agreement is in the form of tax increment revenue notes. This note provides for
the payment of principal, equal to the project redevelopment costs, plus interest at various rates.
Payments on the note will be made at the lesser of the note payment or the actual net tax increment
received (or a reduced percentage received in certain cases), as stated in the agreement. Payments are
first applied to accrued interest and then to principal balances. The note is cancelled at the end of the
agreement term whether or not they have been repaid in full. The outstanding principal balances as of
December 31, 2018, are as follows:
Maturity Amount
Dates Outstanding
Tax Incrememnt Revenue Note 2014 2016-2026 709,040$
Rates
Interest
5.00
Due to the nature of this note (in that repayment is required only if sufficient tax increments are
received), the outstanding amount is not reported in the accompanying financial statements. The City's
position is that this is an obligation to assign future and uncertain revenue sources and, as such, is not
actual debt in substance. Payments of principal and interest on tax increment revenue notes are paid out
of the TIF Districts special revenue fund.
7.2
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City of Crystal
Notes to Financial Statements
NOTE 8 – CONDUIT DEBT OBLIGATIONS
From time to time the City has issued revenue bonds to provide financial assistance to private-sector
entities for the acquisition and construction of facilities deemed to be in the public interest. The bonds
are secured by the property financed and are payable solely from payments received on the underlying
mortgage loans.
Upon repayment of the bonds, ownership of the acquired facilities transfers to the private-sector entity
served by the bond issue. Neither the City or the State, nor any political subdivision thereof, is obligated
in any manner for repayment of the bonds. Accordingly, the bonds are not reported as liabilities in the
accompanying financial statements.
As of December 31, 2018, there were four debt issues outstanding. The aggregate original issue amounts
and principal balances outstanding as of December 31, 2018, are as follows:
Original Principal
Name of Issue Year Issue Balance
LOGIS Government Facilities Revenue Bonds 2006 $ 6,000,000 $ 3,289,071
Crystal Leased Housing Multi Family Housing Bonds 2014 14,300,000 13,915,000
$ 20,300,000 $ 17,204,071
NOTE 9 – PENSION PLANS
The City participates in various pension plans, total pension expense for the year ended December 31,
2018 was $614,867. The components of pension expense are noted in the following plan summaries.
The General Fund, Water Fund, Sewer Fund, and Storm Drainage Fund typically liquidate the liability
related to pensions.
Public Employees' Retirement Association
A. Plan Description
The City participates in the following cost-sharing multiple-employer defined benefit pension plans
administered by PERA. PERA's defined benefit pension plans are established and administered in
accordance with Minnesota Statutes, Chapters 353 and 356. PERA's defined benefit pension plans are
tax qualified plans under Section 401(a) of the Internal Revenue Code.
General Employees Retirement Plan (General Employees Plan, accounted for in the General Employees
Fund)
All full-time and certain part-time employees of the City are covered by the General Employees Plan.
General Employees Plan members belong to the Coordinated Plan. Coordinated Plan members are
covered by Social Security.
7.2
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City of Crystal
Notes to Financial Statements
NOTE 9 – PENSION PLANS (CONTINUED)
Public Employees' Retirement Association (Continued)
A. Plan Description (Continued)
Public Employees Police and Fire Plan (Police and Fire Plan, accounted for in the Police and Fire Fund)
The Police and Fire Plan, originally established for police officers and firefighters not covered by a local
relief association, now covers all police officers and firefighters hired since 1980. Effective July 1,
1999, the Police and Fire Plan also covers police officers and firefighters belonging to a local relief
association that elected to merge with and transfer assets and administration to PERA.
B. Benefits Provided
PERA provides retirement, disability, and death benefits. Benefit provisions are established by state
statute and can only be modified by the state legislature. Vested, terminated employees who are entitled
to benefits but are not receiving them yet are bound by the provisions in effect at the time they last
terminated their public service.
General Employees Plan Benefits
General Employees Plan benefits are based on a member's highest average salary for any five successive
years of allowable service, age, and years of credit at termination of service. Two methods are used to
compute benefits for PERA's Coordinated Plan members. Members hired prior to July, 1 1989, receive
the higher of Method 1 or Method 2 formulas. Only Method 2 is used for members hired after June 30,
1989. Under Method 1, the accrual rate for a Coordinated members is 1.2% for each of the first ten years
of service and 1.7% for each additional year. Under Method 2, the accrual rate for Coordinated members
is 1.7% for all years of service. For members hired prior to July 1, 1989, a full annuity is available when
age plus years of service equal 90 and normal retirement age is 65. For members hired on or after July 1,
1989, normal retirement age is the age for unreduced Social Security benefits capped at 66.
Benefit increases are provided to benefit recipients each January. Increases are related to the funding
ratio of the plan. If the General Employees Plan is at least 90% funded for two consecutive years,
benefit recipients are given a 2.5% increase. If the plan has not exceeded 90% funded, or have fallen
below 80%, benefit recipients are given a 1% increase. A benefit recipient who has been receiving a
benefit for at least 12 full months as of June 30, will receive a full increase. Members receiving benefits
for at least one month but less than 12 full months as of June 30, will receive a pro rata increase.
7.2
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City of Crystal
Notes to Financial Statements
NOTE 9 – PENSION PLANS (CONTINUED)
Public Employees' Retirement Association (Continued)
B. Benefits Provided (Continued)
Police and Fire Plan Benefits
Benefits for the Police and Fire Plan members first hired after June 30, 2010, but before July 1, 2014,
vest on a prorated basis from 50% after five years up to 100% after ten years of credited service.
Benefits for Police and Fire Plan members first hired after June 30, 2014, vest on a prorated basis from
50% after ten years up to 100% after twenty years of credited service. The annuity accrual rate is 3% of
average salary for each year of service. For Police and Fire Plan who were first hired prior to July 1,
1989, a full annuity is available when age plus years of service equal at least 90.
Benefit increases are provided to benefit recipients each January. Police and Fire Plan benefit recipients
receive a future annual 1.0% increase. An annual adjustment will equal 2.5% any time the plan exceeds
a 90% funded ratio for two consecutive years. If the adjustment is increased to 2.5% and the funded
ratio falls below 80% for one year or 85% for two consecutive years, the post-retirement benefit
increase will be lowered to 1%. A benefit recipient who has been receiving a benefit for at least 12 full
months as of June 30 will receive a full increase. Members receiving benefits for at least one month but
less than 12 full months as of June 30 will receive a pro rata increase. For retirements after May 31,
2014, the first increase will be delayed two years.
C. Contributions
Minnesota Statutes Chapter 353 sets the rates for employer and employee contributions. Contribution
rates can only be modified by the state legislature.
General Employees Fund Contributions
Coordinated Plan members were required to contribute 6.5%, of their annual covered salary in calendar
year 2018. The City was required to contribute 7.5% for Coordinated Plan members in calendar year
2018. The City's contributions to the General Employees Fund for the year ended December 31, 2018,
were $330,498. The City's contributions were equal to the required contributions as set by state statute.
Police and Fire Fund Contributions
Plan members were required to contribute 10.8% of their annual covered salary and the City was
required to contribute 16.20% of pay for members in fiscal year 2018. The City's contributions to the
Police and Fire Fund for the year ended December 31, 2018, were $465,078. The City's contributions
were equal to the required contributions as set by state statute.
7.2
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City of Crystal
Notes to Financial Statements
NOTE 9 – PENSION PLANS (CONTINUED)
Public Employees' Retirement Association (Continued)
D. Pension Costs
General Employees Fund Pension Costs
At December 31, 2018, the City reported a liability of $3,567,100 for its proportionate share of the
General Employees Fund's net pension liability. The City's net pension liability reflected a reduction due
to the State of Minnesota's contribution of $16 million to the fund in 2018. The State of Minnesota is
considered a non-employer contributing entity and the State's contribution meets the definition of a
special funding situation.
The State of Minnesota's proportionate share of the net pension liability associated with the City totaled
$116,991. The net pension liability was measured as of June 30, 2018, and the total pension liability
used to calculate the net pension liability was determined by an actuarial valuation as of that date. The
City's proportion of the net pension liability was based on the City's contributions received by PERA
during the measurement period for employer payroll paid dates from July 1, 2017, through June 30,
2018, relative to the total employer contributions received from all of PERA's participating employers.
At June 30, 2018, the City's proportion share was 0.0643%, which was a decrease of 0.0054% from its
proportion measured as of June 30, 2017.
City's proportionate share of the net pension liability 3,567,100$
State of Minnesota's proportionate share of the net pension
liability associated with the City 116,991
Total 3,684,091$
For the year ended December 31, 2018, the City recognized pension expense of $256,789 for its
proportionate share of General Employees Plan's pension expense. Included in the amount, the City
recognized $27,282 as pension expense (and grant revenue) for its proportionate share of the State of
Minnesota's contribution of $16 million to the General Employees Fund.
7.2
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City of Crystal
Notes to Financial Statements
NOTE 9 – PENSION PLANS (CONTINUED)
Public Employees' Retirement Association (Continued)
D. Pension Costs (Continued)
At December 31, 2018, the City reported its proportionate share of the General Employees Plan's
deferred outflows of resources and deferred inflows of resources, related to pensions from the following
sources:
Differences between expected and actual economic experience 101,989$ 111,156$
Changes in actuarial assumptions 364,064 423,841
Difference between projected and actual investment earnings - 376,337
Changes in proportion 40,598 267,618
Contributions paid to PERA subsequent
to the measurement date 165,249 -
Total 671,900$ 1,178,952$
Deferred
Outflows of
Resources
Deferred
Inflows of
Resources
$165,249 reported as deferred outflows of resources related to pensions resulting from City
contributions subsequent to the measurement date will be recognized as a reduction of the net pension
liability in the year ended December 31, 2019. Other amounts reported as deferred outflows and
deferred inflows of resources related to pensions will be recognized in pension expense as follows:
Year Ending Pension Expense
December 31,Amount
2019 60,683$
2020 (268,277)
2021 (390,256)
2022 (74,451)
Total (672,301)$
7.2
77
City of Crystal
Notes to Financial Statements
NOTE 9 – PENSION PLANS (CONTINUED)
Public Employees' Retirement Association (Continued)
D. Pension Costs (Continued)
Police and Fire Fund Pension Costs
At December 31, 2018, the City reported a liability of $2,861,020 for its proportionate share of the
Police and Fire Fund's net pension liability. The net pension liability was measured as of June 30, 2018,
and the total pension liability used to calculate the net pension liability was determined by an actuarial
valuation as of that date. The City's proportion of the net pension liability was based on the City's
contributions received by PERA during the measurement period for employer payroll paid dates from
July 1, 2017, through June 30, 2018, relative to the total employer contributions received from all of
PERA's participating employers. At June 30, 2018, the City's proportion was 0.2707 %, which was an
increase of 0.0107% from its proportion measured as of June 30, 2017. The City also recognized
$24,363 for the year ended December 31, 2018, as revenue and an offsetting reduction of the net
pension liability for its proportionate share of the State of Minnesota's on-behalf contributions to the
Police and Fire Fund. Legislation passed in 2013 required the State of Minnesota to begin contributing
$9 million to the Police and Fire Fund each year, starting in fiscal year 2014.
For the year ended December 31, 2018, the City recognized pension expense of $355,913 for its
proportionate share of the Police and Fire Fund pension expense.
At December 31, 2018, the City reported its proportionate share of the Police and Fire Plan's deferred
outflows of resources and deferred inflows of resources related to pensions from the sources below.
Differences between expected and actual economic experience 113,636$ 633,212$
Changes in actuarial assumptions 3,220,176 4,083,579
Difference between projected and actual investment earnings - 649,418
Changes in proportion 592,256 32,402
Contributions paid to PERA subsequent
to the measurement date 232,539 -
Total 4,158,607$ 5,398,611$
Deferred
Outflows of
Resources
Deferred
Inflows of
Resources
7.2
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City of Crystal
Notes to Financial Statements
NOTE 9 – PENSION PLANS (CONTINUED)
Public Employees' Retirement Association (Continued)
D. Pension Costs (Continued)
Police and Fire Fund Pension Costs (Continued)
$232,539 reported as deferred outflows of resources related to pensions resulting from City
contributions subsequent to the measurement date will be recognized as a reduction of the net pension
liability in the year ended December 31, 2019. Other amounts reported as deferred outflows and
deferred inflows of resources related to pensions will be recognized in pension expense as follows:
Year Ending Pension Expense
December 31,Amount
2019 (31,965)$
2020 (150,747)
2021 (327,951)
2021 (976,444)
2022 14,564
Total (1,472,543)$
E. Actuarial Assumptions
The total pension liability in the June 30, 2018, actuarial valuation was determined using the entry age
normal actuarial cost method and the following actuarial assumptions:
Inflation 2.50 % Per year
Active member payroll growth 3.25 Per year
Investment rate of return 7.50
Salary increases were based on a service-related table. Mortality rates for active members, retirees,
survivors, and disabilitants for all plans were based on RP 2014 tables for males or females, as
appropriate, with slight adjustments to fit PERA's experience. Cost of living benefit increases after
retirement for retirees are assumed to be 1.25% per year for the General Employees Plan, 1.0% per year
for the Police and Fire Plan, and 2.0% per year for the Correctional Plan.
7.2
79
City of Crystal
Notes to Financial Statements
NOTE 9 – PENSION PLANS (CONTINUED)
Public Employees' Retirement Association (Continued)
E. Actuarial Assumptions (Continued)
Actuarial assumptions used in the June 30, 2018, valuation were based on the results of actuarial
experience studies. The most recent six-year experience study in the General Employees Plan was
completed in 2015. The most recent four-year experience study for Police and Fire Plan was completed
in 2016. The five-year experience study for the Correctional Plan, prepared by a former actuary, was
completed in 2012. The mortality assumption for the Correctional Plan is based on the Police and Fire
Plan experience study completed in 2016. Economic assumptions were updated in 2017 based on a
review of inflation and investment return assumptions.
The following changes in actuarial assumptions occurred in 2018:
General Employees Fund
The mortality projection scale was changed from MP-2015 to MP-2017.
The assumed benefit increase was changed from 1.0% per year through 2044 and 2.5% per year
thereafter to 1.25% per year.
Police and Fire Fund
The mortality projection scale was changed from MP-2016 to MP-2017.
As set by statute, the assumed post-retirement benefit increase was changed from 1.0% per year
through 2064 and 2.5% per year, thereafter, to 1.0% for all years, with no trigger.
The State Board of Investment, which manages the investments of PERA, prepares an analysis of the
reasonableness on a regular basis of the long-term expected rate of return using a building-block method
in which best-estimate ranges of expected future rates of return are developed for each major asset class.
These ranges are combined to produce an expected long-term rate of return by weighting the expected
future rates of return by the target asset allocation percentages. The target allocation and best estimates
of geometric real rates of return for each major asset class are summarized in the table on the following
page:
Domestic stocks 36 %5.10 %
International stocks 17 5.30
Bonds 20 0.75
Alternative assets 25 5.90
Cash 2 0.00
Total 100 %
Asset Class
Long-Term
Expected Real
Rate of ReturnTarget Allocation
7.2
80
City of Crystal
Notes to Financial Statements
NOTE 9 – PENSION PLANS (CONTINUED)
Public Employees' Retirement Association (Continued)
E. Discount Rate
The discount rate used to measure the total pension liability in 2018 was 7.5%. The projection of cash
flows used to determine the discount rate assumed that contributions from Plan members and employers
will be made at rates set in Minnesota Statutes. Based on those assumptions, the fiduciary net position of
the General Employees Fund and the Police and Fire Fund was projected to be available to make all
projected future benefit payments of current Plan members. Therefore, the long-term expected rate of
return on pension plan investments was applied to all periods of projected benefit payments to determine
the total pension liability.
F. Pension Liability Sensitivity
The table on the following page presents the City's proportionate share of the net pension liability for all
plans it participates in, calculated using the discount rate disclosed in the preceding paragraph, as well
as what the City's proportionate share of the net pension liability would be if it were calculated using a
discount rate 1 percentage point lower or 1 percentage point higher than the current discount rate:
1% Decrease in 1% Increase in
City's proportionate share of
the General Employees Fund
net pension liability 5,796,995$ 3,567,100$ 1,726,386$
1% Decrease in 1% Increase in
City's proportionate share of
the Police and Fire Fund
net pension liability 6,162,079$ 2,861,020$ 131,181$
Discount Rate
(6.5%)
Discount Rate
(7.5%)
Discount Rate
(8.5%)
Discount Rate
(6.5%)
Discount Rate
(7.5%)
Discount Rate
(8.5%)
G. Pension Plan Fiduciary Net Position
Detailed information about each pension plan's fiduciary net position is available in a separately-issued
PERA financial report that includes financial statements and required supplementary information. That
report may be obtained on the Internet at www.mnpera.org.
Public Employees Defined Contribution Plan (Defined Contribution Plan)
Certain employee types of the of the City of Crystal, which include council members, are covered by the
Defined Contribution Plan, a multiple-employer deferred compensation plan administered by PERA.
The Defined Contribution Plan is a tax qualified plan under Section 401(a) of the Internal Revenue Code
and all contributions by or on behalf of employees are tax deferred until time of withdrawal.
7.2
81
City of Crystal
Notes to Financial Statements
NOTE 9 – PENSION PLANS (CONTINUED)
Public Employees' Retirement Association (Continued)
G. Pension Plan Fiduciary Net Position (Continued)
Public Employees Defined Contribution Plan (Defined Contribution Plan) (Continued)
The defined contribution plan consists of individual accounts paying a lump-sum benefit. Plan benefits
depend solely on amounts contributed to the plan plus investment earnings, less administrative
expenses; therefore, there is not future liability to the employer. Minnesota Statutes, Chapter 353D.03,
specifies plan provisions, including the employee and employer contribution rates for those qualified
personnel who elect to participate. An eligible elected official who decides to participate contributes 5%
of salary which is matched by the elected official's employer. For ambulance service personnel,
employer contributions are determined by the employer, and for salaried employees must be a fixed
percentage of salary. Employer contributions for volunteer personnel may be a unit value for each call
or period of alert duty. Employees who are paid for their services may elect to make member
contributions in an amount not to exceed the employer share. Employer and employee contributions are
combined and used to purchase shares in one or more of the seven accounts of the Minnesota
Supplemental Investment Fund. For administering the plan, PERA receives 2% of employer
contributions and twenty-five hundredths of 1% (.0025) of the assets in each member's account
annually.
Pension expense for the year is equal to contributions made. Total contributions made by the City during
fiscal year 2018 were:
2,165$ 2,165$ 5% 5% 5%
Contribution Amount Percentage of Covered Payroll
Employee Employer Employee Employer Required Rate
NOTE 10 – POST EMPLOYMENT HEALTH CARE PLAN
A. Plan Description
The City provides a single-employer defined benefit health care plan to eligible retirees and their
spouses. The plan offers medical coverage. Medical coverage is administered by BlueCross
BlueShield. It is the City's policy to periodically review its medical coverage and to obtain requests for
proposals in order to provide the most favorable benefits and premiums for City employees and
retirees.
B. Benefits Provided
Employees who apply for early retirement shall remain eligible to receive certain health insurance
benefits until the end of the year in which the employee becomes Medicare eligible. The City will pay
the single person premium for qualifying employees up until they reach age 65 or become eligible for
Medicare coverage.
7.2
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City of Crystal
Notes to Financial Statements
NOTE 10 – POST EMPLOYMENT HEALTH CARE PLAN (CONTINUED)
C. Contributions
Retirees contribute to the health care plan at the same rate as City employees. This results in the retirees
receiving an implicit rate subsidy. Contribution requirements are established by the City, based on the
contract terms with BlueCross BlueShield. The required contributions are based on projected pay-as-
you-go financing requirements. For the year 2018, the City contributed $79,989 to the plan.
D. Members
As of December 31, 2018, the following were covered by the benefit terms:
Total employees without coverage 12
Employees with coverage 96
Total 108
E. Actuarial Assumptions
The total OPEB liability was determined by an actuarial valuation as of December 31, 2017, using the
following actuarial assumptions, applied to all periods included in the measurement, unless otherwise
specified:
Discount Rate 4.09%
Salary increases including inflation Based on the PERA Plan in which the employee
is a participant.
Healthcare cost trend increases 10.0% for FY2018, gradually decreasing over
ten years to an ultimate rate of 5.0% in
FY2028 and later years.
Mortality assumption Mortality rates were based on RP-2014
mortality tables with projected mortality
improvements based on scale MP-2015, and
other adjustments
Key Methods and Assumptions Used in Valuation of Total OPEB Liability
7.2
83
City of Crystal
Notes to Financial Statements
NOTE 10 – POST EMPLOYMENT HEALTH CARE PLAN (CONTINUED)
E. Actuarial Assumptions (Continued)
The actuarial assumptions used in the December 31, 2017 valuation were based on the results of an
actuarial experience study for the period January 1, 2017 – December 31, 2017.
F. Total OPEB Liability
The City's total OPEB liability of $104,285 was measured as of December 31, 2017, and was
determined by an actuarial valuation as of that date.
Changes in the total OPEB liability are as follows:
Total
OPEB
Liability
Balances at January 1, 2017 2,309,534$
Changes for the year
Service cost 105,872
Interest 89,846
Changes of assumptions 84,810
Benefit payments (77,076)
Net changes 203,452
Balances at December 31, 2017 2,512,986$
Changes of assumptions and other inputs reflect a change in the discount rate from 3.44% in 2016 to
4.09% in 2017.
G. OPEB Liability Sensitivity
The following presents the City's total OPEB liability calculated using the discount rate of 3.31% as
well as the liability measured using 1% lower and 1% higher than the current discount rate.
1% decrease Current 1% increase
(3.09%)(4.09%)(5.09%)
2,273,588$ 2,512,986$ 2,784,681$
Total OPEB Liability/(Asset)
7.2
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City of Crystal
Notes to Financial Statements
NOTE 10 – POST EMPLOYMENT HEALTH CARE PLAN (CONTINUED)
G. OPEB Liability Sensitivity (Continued)
The following presents the total OPEB liability of the City, as well as what the City's total OPEB
liability would be if it were calculated using healthcare cost trend rates that are 1% lower and 1% higher
than the current healthcare cost trend rates.
1% decrease Current 1% increase
2,852,941$ 2,512,986$ 2,225,876$
Total OPEB Liability/(Asset)
(9.0% decreasing
to 4.0%)
(10.0% decreasing
to 5.0%)
(11.0% decreasing
to 6.0%)
H. OPEB Expense and Deferred Outflows of Resources and Deferred Inflows of Resources
Related to OPEB
For the year ended December 31, 2018, the City recognized OPEB expense of $48,446. At
December 31, 2018, the City reported deferred outflows of resources of $155,006 as shown below.
Deferred Deferred
Outflows of Inflows of
Resources Resources
Changes in Actuarial Assumptions 75,017$ -$
Contributions made subsequent to the
measurement date 79,989 -
Total 155,006$ -$
$79,989 reported as deferred outflows of resources resulting from contributions subsequent to the
measurement date will be recognized as a reduction of the net pension liability in the year ended
December 31, 2019. Other amounts reported as deferred outflows of resources will be recognized in
OPEB expense as follows:
2019 9,793$
2020 9,793
2021 9,793
2022 9,793
2023 9,793
Thereafter 26,052
Total 75,017$
7.2
85
City of Crystal
Notes to Financial Statements
NOTE 11 – FUND BALANCES
A. Classifications
A summary of governmental fund balance classifications at December 31, 2018, is as follows:
Special
Revenue
Fund
Street Police
General Debt Recon- Equipment Other
Fund EDA Service struction Revolving Funds Total
Fund balances
Nonspendable
Inventory 23,941$ -$ -$ -$ -$ -$ 23,941$
Restricted
Housing and Redevelopment
Assistance - - - - - 1,327,159 1,327,159
Debt service - - 6,079,365 - - - 6,079,365
Dwi-related enforcement,
Training, and education - - - - - 58,991 58,991
Total restricted - - 6,079,365 - - 1,386,150 7,465,515
Committed
Compensated absences 774,914 - - - - - 774,914
Housing and redevelopment
Assistance - 3,931,334 - - - - 3,931,334
Cap. outlay - city wide - - - - - 399,581 399,581
Cap. outlay - replace and
renovation of city bldgs. - - - - - 3,338,128 3,338,128
Cap. outlay - street
reconstruction - - - 5,672,092 - - 5,672,092
Cap. outlay - police equip. - - - - 2,812,125 - 2,812,125
Cap. outlay - cable TV equip.- - - - - 152,917 152,917
Cap. outlay - park improvement - - - - - 1,932,904 1,932,904
Cap. outlay - fleet - - - - - 2,790,279 2,790,279
Cap. outlay - information technology - - - - - 466,596 466,596
Total committed 774,914 3,931,334 - 5,672,092 2,812,125 9,080,405 22,270,870
Assigned
Police Dept. purposes - - - - - 73,924 73,924
Unassigned 6,181,591 - - - - - 6,181,591
Total fund balances 6,980,446$ 3,931,334$ 6,079,365$ 5,672,092$ 2,812,125$ 10,540,479$ 36,015,841$
Major Funds
Capital Project Funds
7.2
86
City of Crystal
Notes to Financial Statements
NOTE 12 – RISK MANAGEMENT
The City is exposed to various risks of loss related to torts; theft of, damage to, and destruction of assets;
errors and omissions; injuries to employees; and natural disasters. As such, the City participates in the
League of Minnesota Cities Insurance Trust (LMCIT), a public entity risk pool currently operating as a
common risk management and insurance program for cities that are parties to a joint powers agreement.
The LMCIT is self-sustaining through member premiums and reinsures through commercial companies
for claims in excess of pre-determined amounts. The LMCIT provides coverage for liability, errors and
omissions, worker's compensation, auto, and other miscellaneous types of coverage.
The City's Self-Insurance Fund (an internal service fund) is used to account for and finance its uninsured
risks of loss. The Self-Insurance Fund provides coverage for up to a maximum of $25,000 for each
general liability or property damage claim, up to $75,000 per year. The City purchases commercial
insurance for claims in excess of coverage provided by this fund, as well as for all other risks of loss.
Settled claims exceeded commercial coverage in 2018. There were no significant reductions in
insurance coverage during 2018.
All funds of the City contribute to the Self-Insurance Fund based on estimates of the amounts needed to
pay prior and current year claims. The claims liability of $15,000 is included in accounts payable of the
Self-Insurance Fund at December 31, 2018. The liability amount is based on the requirements of GASB
Statement No. 10, which requires that a liability for claims be reported when information prior to the
issuance of the financial statements indicates that it is probable that a liability has been incurred as of
the date of the financial statements and the amount of the loss can be reasonably estimated. The estimate
of the liability also includes amounts for incremental claim adjustment expenses related to specific
claims and other claim adjustment expenses, regardless of whether allocated to specific claims.
Estimated recoveries, for example from salvage or subrogation, are another component of the claims
liability estimate.
The maximum liability for any one year is $75,000. The total liability may exceed $75,000 if claims are
open from more than one year.
Changes in claims liability for 2018 and 2017 are as follows:
Year
Claims Liability
Beginning of
Year
Current Year
Claims and
Changes in
Estimates
Payments on
Claims
Claims Liability
End of Year
2017 151,175$ (47,832)$ 88,343$ 15,000$
2018 15,000 15,365 6,865 23,500
7.2
87
City of Crystal
Notes to Financial Statements
NOTE 13 – JOINT VENTURES AND JOINTLY GOVERNED ORGANIZATIONS
A. Joint Ventures
1. Golden Valley, Crystal, and New Hope Joint Water Commission
The City is a member of a joint powers agreement, together with the cities of Golden Valley and
New Hope, which established a Joint Water Commission (JWC). The JWC was created in 1963 to
provide for the creation and maintenance of a joint water supply, storage, and distribution system
through which water purchased from the City of Minneapolis can be supplied to the population of
the member cities.
The city council of each member city is entitled to appoint one member to the JWC. Original
construction costs were allocated to the member cities based on percentages agreed upon in the joint
powers agreement. All property acquired under this agreement is owned by the members in
proportion to the amount of construction costs paid by each member city. All subsequent operating
and maintenance costs are apportioned to, and paid by, each member city on the basis of water
usage.
The City's equity interest and its share of the net income (loss) of the JWC are reported in the City's
Water Fund (an Enterprise Fund). The City's equity interest in the JWC at December 31, 2018, is
$4,451,407.
Due to concurrent timing of the City's fiscal year end and audit of the JWC, the City reports its
equity interest in the JWC with a one-year lag. The following financial information is from the
JWC's audited financial statements for the year ended December 31, 2017:
Total assets 16,667,382$
Total liabilities 572,124
Net position
Net investment in capital assets 10,664,216
Restricted for capital improvements 2,762,426
Restricted for emergency water supply 1,700,000
Unrestricted 968,616
Total net position 16,095,258$
Total program expenses 7,417,031$
Total program revenues 7,749,748
Net program revenue 332,717
Total general revenues 143,787
Change in net position 476,504
Net position
Beginning of year 15,618,754
End of year 16,095,258$
JWC audited financial statements are available from the City of Golden Valley, Finance Department,
7800 Golden Valley Road, Golden Valley, MN 55427.
7.2
88
City of Crystal
Notes to Financial Statements
NOTE 13 – JOINT VENTURES AND JOINTLY GOVERNED ORGANIZATIONS
(CONTINUED)
A. Joint Ventures (Continued)
2. West Metro Fire-Rescue District
Effective January 2, 1998, the City entered into a joint powers agreement with the City of New Hope
for the purpose of consolidating fire departments of the two cities. Operations commenced in July
1998 under the name of West Metro Fire-Rescue District (the District).
The District is governed by a seven-member board of directors that includes one Crystal City
Council member who is appointed by resolution, one public member appointed by the City Council,
and the City Manager, who serves ex officio.
As required by the agreement, the City transferred fire department equipment to the District,
retaining its rights to these assets in the event of the District's dissolution. The equipment transferred
had a cost value of $1,923,820. The District recorded only the rolling stock received and recorded it
at its estimated fair value. Other equipment items were not capitalized.
The City's equity interest and its share of the net income (loss) of the District are reported only in the
government-wide financial statements. It is not reported in the General Fund because the equity
interest represents equity primarily in capital assets vs. financial resources. The City's equity interest
in the District at December 31, 2017, is $1,381,904.
Due to concurrent timing of the City's fiscal year end and audit of the District, the City reports its
equity interest in the District with a one-year lag. The following financial information is from the
District's audited financial statements for the year ended December 31, 2017:
Total assets and deferred outflows of resources 6,050,162$
Total liabilities and deferred inflows of resources 3,916,908
Net position
Net investment in capital assets 2,097,561
Restricted for donor-approved purposes 50,449
Unrestricted (14,756)
Total net position 2,133,254$
Total program expenses 2,916,030$
Total program revenues 2,287,237
Net program expense (628,793)
Total general revenues 11,455
Change in net position (617,338)
Net position
Beginning of year 2,750,592
End of year 2,133,254$
7.2
89
City of Crystal
Notes to Financial Statements
NOTE 13 – JOINT VENTURES AND JOINTLY GOVERNED ORGANIZATIONS
(CONTINUED)
A. Joint Ventures (Continued)
2. West Metro Fire-Rescue District (Continued)
The activities of the District will continue to be funded entirely by the cities of Crystal and New
Hope, with each city contributing its proportionate share of the annual operating budget in monthly
installments. According to a formula in the agreement, the City's share of the District's operating
budget is 49.92%.
Audited financial statements are available from West Metro Fire-Rescue District, 4251 Xylon
Avenue N., New Hope, MN 55428.
B. Jointly Governed Organizations
1. Local Government Information Systems Association (LOGIS)
The City is a member of LOGIS, a consortium of Minnesota government entities that provides
computerized data processing and support services to its members. LOGIS is legally separate from
the City, the City does not appoint a voting majority of the Board, and it is fiscally independent of
the City. The amount paid to LOGIS for services received in 2018 was $381,759 which was
allocated to various funds based on application usage.
2. LOGIS Insurance Group
This group provides cooperative purchasing of health and life insurance benefits for over 40
government entities. The amount paid for 2018 health and life insurance benefits was $441,158.
3. Pets Under Police Security (PUPS)
The City is party to a joint powers agreement, together with five other cities, which created an
organization to provide for the efficient and economical impoundment of animals in a jointly owned
and operated facility. The amount paid to PUPS for services received in 2018 was $19,107.
4. Bassett Creek Watershed Management Commission (BCWMC)
The City is party to a joint powers agreement, together with eight other cities, the purpose of which
is to provide for cooperative planning, usage, and improvement of the Bassett Creek watershed. The
amount paid to BCWMC in 2018 was $26,904.
5. Shingle Creek Watershed Management Commission (SCWMC)
The City is party to a joint powers agreement, together with eight other cities, which was created to
protect and manage the water resources of the Shingle Creek watershed. The amount paid to
SCWMC in 2018 was $27,741.
7.2
90
City of Crystal
Notes to Financial Statements
NOTE 13 – JOINT VENTURES AND JOINTLY GOVERNED ORGANIZATIONS
(CONTINUED)
B. Jointly Governed Organizations (Continued)
6. Hennepin Recycling Group (HRG)
The City is party to a joint powers agreement, together with the cities of Brooklyn Center and New
Hope, which established HRG. HRG was created to provide for the efficient and economical
collection, recycling, and disposal of solid waste within the cities. HRG contracts for collection and
recycling activities and the participating cities are billed for services provided to its residents. The
amount paid to HRG for services received in 2018 was $1,417.
Accounting services for HRG were provided by the City, which has reported the financial accounts
of HRG in an Agency Fund in these financial statements.
NOTE 14 – COMMITMENTS
The City has in process various multi-year construction projects which were not completed in the
current fiscal year. As of December 31, 2018, outstanding commitments for these multi-year projects
total approximately $903,184.
NOTE 15 – FACILITY USE AGREEMENT
On August 24, 2004, the City entered into a licensor-licensee relationship with ISD 281. Per terms of the
agreement, the City contributed $900,000 towards the cost of constructing and equipping a gymnasium.
In return, the City is entitled to use the space for public recreation as well as for programs and services
for its residents. The agreement is for a term of 40 years, running from September 1, 2005 through
August 31, 2045. ISD 281 has title to the property and is responsible for all subsequent operations and
maintenance costs.
NOTE 16 – CONTINGENT LIABILITIES
During the course of normal operations, the City may be subject to claims or other litigation. It is the
opinion of the City's attorney that resolution of these matters, if any at December 31, 2018, will not have
a material adverse effect on the financial condition of the City.
NOTE 17 – CHANGE IN ACCOUNTING PRINCIPLE/PRIOR PERIOD ADJUSTMENT
For the year ended December 31, 2018, the City implemented GASB Statement No. 75, Accounting and
Financial Reporting for Postemployment Benefits Other than Pensions. This resulted in an adjustment to
the beginning net position on the Statement of Activities of $1,618,825 to add the beginning total OPEB
liability.
7.2
91
City of Crystal
Notes to Financial Statements
NOTE 18 – NEW STANDARDS ISSUED BUT NOT YET IMPLEMENTED
GASB Statement No. 84, Fiduciary Activities establishes criteria for identifying fiduciary activities of
all state and local governments. The focus of the criteria generally is on (1) whether a government is
controlling the assets of the fiduciary activity and (2) the beneficiaries with whom a fiduciary
relationship exists. Separate criteria are included to identify fiduciary component units and
postemployment benefit arrangements that are fiduciary activities. This statement will be effective for
the year ending December 31, 2019.
GASB Statement No. 87, Leases establishes a single model for lease accounting based on the
foundational principle that leases are financings of the right to use an underlying asset. Under this
statement, a lessee is required to recognize a lease liability and an intangible right-to-use lease asset, and
a lessor is required to recognize a lease receivable and a deferred inflow of resources, thereby enhancing
the relevance and consistency of information about governments' leasing activities. This statement will
be effective for the year ending December 31, 2020.
7.2
92
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7.2
93
REQUIRED SUPPLEMENTARY INFORMATION
7.2
December 31,
2018
Total OPEB Liability
Service cost 105,872$
Interest 89,846
Changes of assumptions 84,810
Benefit payments (77,076)
Net change in total OPEB liability 203,452
Beginning of year 2,309,534
End of year 2,512,986$
6,600,000$
38.1%
Note: Schedule is intended to show ten year trend. Additional years will be reported as they become available.
94
City of Crystal
Schedule of Changes in Total OPEB Liability
and Related Ratios
Covered payroll
Total OPEB liability as a percentage of covered-employee payroll
7.2
June 30, 2018
Actuarially determined contribution 77,076$
Contributions in relation to the actuarially determined contribution 77,076
Contribution deficiency (excess) -$
6,600,000$
1.17%
Note: Schedule is intended to show ten year trend. Additional years will be reported as they
become available.
95
Schedule of Employer Contributions - OPEB
Covered-employee payroll
Contributions as a percentage of covered-employee payroll
City of Crystal
7.2
City's Covered
Payroll
2018 0.0643% 3,567,100$ 116,991$ 3,684,091$ 4,321,093$ 82.55%79.53%
2017 0.0697% 4,449,602 55,982 4,505,584 4,492,840 89.04%75.90%
2016 0.0687% 5,578,099 72,855 5,650,954 4,260,733 130.92%68.91%
2015 0.0694% 3,396,668 - 3,396,668 4,010,187 84.70%78.19%
Note: Schedule is intended to show ten year trend. Additional years will be reported as they become available.
For Fiscal
Year
Ended
June 30,
City's
Proportion of
the Net
Pension
Liability
(Asset)
City's
Proportionate
Share of the
Net Pension
Liability
(Asset)
City's Covered
Payroll
City's
Proportionate
Share of the Net
Pension
Liability (Asset)
as a Percentage
of its Covered
Payroll
Plan Fiduciary
Net Position as
a Percentage of
the Total
Pension
Liability
2018 0.2707% 2,861,020$ 2,852,679$ 100.29% 88.84%
2017 0.2600% 3,486,909 2,664,136 130.88% 85.43%
2016 0.2430% 9,730,143 2,343,136 415.26% 63.88%
2015 0.2400% 2,726,962 2,136,679 127.63% 86.61%
Note: Schedule is intended to show ten year trend. Additional years will be reported as they become available.
96
City of Crystal
Schedule of City's Proportionate Share
of Net Pension Liability
General Employees Retirement Fund
Last Ten Years
Plan Fiduciary
Net Position as a
Percentage of the
Total Pension
Liability
Last Ten Years
For Fiscal
Year
Ended
June 30,
State's
Proportionate
Share
(Amount) of
the Net
Pension
Liability
Associated
with the City
City's
Proportionate
Share of the Net
Pension
Liability and the
State's
Proportionate
Share of the Net
Pension
Liability
Associated with
the City
Public Employees Police and Fire Retirement Fund
Schedule of City's Proportionate Share
of Net Pension Liability
City's
Proportionate
Share
(Percentage)
of the Net
Pension
Liability
(Asset)
City's
Proportionate
Share
(Amount) of
the Net
Pension
Liability
(Asset)
City's
Proportionate
Share of the
Net Pension
Liability
(Asset) as a
Percentage of
its Covered
Payroll
7.2
2018 330,498$ 330,498$ -$ 4,406,640$ 7.50%
2017 318,656 318,656 - 4,248,747 7.50%
2016 323,436 323,436 - 4,312,480 7.50%
2015 315,859 315,859 - 4,211,453 7.50%
2018 465,078$ 465,078$ -$ 2,870,852$ 16.20%
2017 447,205 447,205 - 2,760,525 16.20%
2016 398,040 398,040 - 2,457,037 16.20%
2015 367,112 367,112 - 2,266,123 16.20%
97
Contributions
in Relation to
the Statutorily
Required
Contributions
Contribution
Deficiency
(Excess)
City's
Covered
Payroll
Fiscal Year
Ending
December 31,
Contributions as
a Percentage of
Covered Payroll
Contribution
Deficiency
(Excess)
Contributions
in Relation to
the Statutorily
Required
Contributions
City's
Covered
Payroll
Statutorily
Required
Contribution
Last Ten Years
Note: Schedule is intended to show ten year trend. Additional years will be reported as
they become available.
Schedule of City Contributions -
Public Employees Police and Fire Retirement Fund
Fiscal Year
Ending
December 31,
Statutorily
Required
Contribution
City of Crystal
Schedule of City Contributions -
General Employees Retirement Fund
Last Ten Years
Note: Schedule is intended to show ten year trend. Additional years will be reported as
they become available.
Contributions as
a Percentage of
Covered Payroll
7.2
98
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7.2
City of Crystal
Notes to Required Supplementary Information
99
GENERAL EMPLOYEES FUND
2018 Changes
Changes in Actuarial Assumptions
The mortality projection scale was changed from MP-2015 to MP-2017.
The assumed benefit increase was changed from 1.0% per year through 2044 and 2.5% per year
thereafter to 1.25% per year.
2017 Changes
Changes in Actuarial Assumptions
The CSA loads were changed from 0.8% for active members and 60% for vested and non-vested
deferred members. The revised CSA loads are now 0.0% for active member liability, 15% for
vested deferred member liability and 3% for non-vested deferred member liability.
The assumed post-retirement benefit increase rate was changed from 1.0% per year for all years
to 1.0% per year through 2044 and 2.5% per year thereafter.
2016 Changes
Changes in Actuarial Assumptions
The assumed post-retirement benefit increase rate was changed from 1.0% per year through 2035
and 2.5% per year thereafter to 1.0% per year for all future years.
The assumed investment return was changed from 7.9% to 7.5%. The single discount rate was
changed from 7.9% to 7.5%.
Other assumptions were changed pursuant to the experience study dated June 30, 2015. The
assumed future salary increases, payroll growth, the inflation were decreased by 0.25% to 3.25%
for payroll growth and 2.50% for inflation.
2015 Changes
Changes in Plan Provisions
On January 1, 2015, the Minneapolis Employees Retirement Fund was merged into the General
Employees Fund, which increased the total pension liability by $1.1 billion and increased the
fiduciary plan net position by $892 million. Upon consolidation, state and employer
contributions were revised.
Changes in Actuarial Assumptions
The assumed post-retirement benefit increase rate was changed from 1.0% per year through 2030
and 2.5% per year thereafter to 1.0% per year through 2035 and 2.5% per year thereafter.
7.2
City of Crystal
Notes to Required Supplementary Information
100
POLICE AND FIRE FUND
2018 Changes
Changes in Actuarial Assumptions
The mortality projection scale was changed from MP-2016 to MP-2017.
As set by statute, the assumed post-retirement benefit increase was changed from 1.0% per year
through 2064 and 2.5% per year, thereafter, to 1.0% for all years, with no trigger.
2017 Changes
Changes in Actuarial Assumptions
Assumed salary increases were changed as recommended in the June 30, 2016, experience study.
The net effect is proposed rates that average 0.34% lower than the previous rates.
Assumed rates of retirement were changed, resulting in fewer retirements.
The CSA load was 30% for vested and non-vested deferred members. The CSA has been
changed to 33% for vested members and 2% for non-vested members.
The base mortality table for healthy annuitants was changed from the RP-2000 fully generational
table to the RP-2014 fully generational table (with a base year of 2006), with male rates adjusted
by a factor of 0.96. The mortality improvement scale was changed from Scale AA to Scale MP-
2016. The base mortality table for disabled annuitants was changed from the RP-2000 disabled
mortality table to the mortality tables assumed for healthy retirees.
Assumed termination rates were decreased to 3% for the first three years of service. Rates
beyond the select period of three years were adjusted, resulting in more expected terminations
overall.
Assumed percentage of married female members was decreased from 65% to 60%.
Assumed age difference was changed from separate assumptions for male members (wives
assumed to be 3 years younger) and female members (husbands assumed to be 4 years older) to
the assumption that males are 2 years older than females.
The assumed percentage of female members electing Joint and Survivor annuities was increased.
The assumed post-retirement benefit increase rate was changed from 1% for all years to 1% per
year through 2064 and 2.5% thereafter.
2016 Changes
Changes in Actuarial Assumptions
The assumed post-retirement benefit increase rate was changed from 1.0% per year through 2037
and 2.5% thereafter to 1.0% per year for all future years.
The assumed investment return was changed from 7.9% to 7.5%. The single discount rate
changed from 7.9% to 5.6%.
The assumed future salary increases, payroll growth, and inflation were decreased by 0.25% to
3.25% for payroll growth and 2.50% for inflation.
7.2
City of Crystal
Notes to Required Supplementary Information
101
POLICE AND FIRE FUND (CONTINUED)
2015 Changes
Changes in Plan Provisions
The post-retirement benefit increase to be paid after attainment of the 90% funding threshold
was changed, from inflation up to 2.5%, to a fixed rate of 2.5%.
Changes in Actuarial Assumptions
The assumed post-retirement benefit increase rate was changed from 1.0% per year through 2030
and 2.5% per year thereafter to 1.0% per year through 2037 and 2.5% per year thereafter.
7.2
102
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7.2
103
SUPPLEMENTARY INFORMATION
7.2
104
City of Crystal
Nonmajor Governmental Funds
SPECIAL REVENUE FUNDS
Special Revenue Funds are used to account for specific revenues that are restricted to expenditures for
particular purposes.
TIF Districts
This fund accounts for activities of the City's tax increment financing (TIF) districts. The main financing
sources include tax increment revenue, interest, and transfers from other funds.
Special Projects
This fund is used to account for miscellaneous grants as well as revenues and expenditures relating to
DWI-forfeited vehicles. In addition, this fund is used to account for revenues and expenditures of funds
donated for ongoing, city-specified projects that may otherwise not be accomplished due to lack of
funding.
CAPITAL PROJECTS FUNDS
Capital Projects Funds are used to account for the acquisition and construction of major capital facilities
of the City, with the exception of those financed by Proprietary Funds.
Permanent Improvement Revolving
This fund is used to account for the majority of the City's capital acquisitions and improvements, as they
relate to operations of the City.
Street Maintenance
This fund was created to account for the cost of sealcoat and mill and overlay projects in areas of the
City where streets had previously been reconstructed. From 2016 onward, sealcoating has been
discontinued. Mill and overlay projects will be done based on street condition, rather than based on
street reconstruction phases. In addition, this fund will account for ongoing maintenance of sidewalks
and retaining walls. Financing sources may include property taxes, special assessments, interest, and
reimbursements.
Major Building Replacement Fund
This fund is used to account for major renovation and/or construction of City buildings.
Park Improvement
This fund is used to accumulate funds to pay for park improvements. The main financing sources
include property taxes and interest.
Cable TV Equipment
This fund is used to accumulate funds to pay for equipment and expenses related to TV broadcast of city
council meetings. The main financing sources include grants and interest.
7.2
105
City of Crystal
Nonmajor Governmental Funds
CAPITAL PROJECTS FUNDS (CONTINUED)
Fleet Fund
This fund is used to procure, maintain, and repair City vehicles and equipment.
Information Technology Fund
This fund is used to account for information technology equipment and related expenses of the City.
City Buildings Fund
This fund is used to account for major renovation and/or construction of City buildings.
7.2
Capital Projects
TIF Districts
Special Rev Special Projects Total
Permanent
Improvement
Revolving
Assets
Cash and investments 1,154,369$ 144,473$ 1,298,842$ 399,581$
Accounts receivable - 3,151 3,151 -
Taxes receivable - - - -
Due from other governments 200,000 2,204 202,204 -
Land held for resale - - - -
Notes receivable - - - -
Total assets 1,354,369$ 149,828$ 1,504,197$ 399,581$
Liabilities
Accounts payable -$ 16,913$ 16,913$ -$
Contracts payable 27,210 - 27,210 -
Total liabilities 27,210 16,913 44,123 -
Deferred Inflows of Resources
Unavailable revenue - property taxes - - - -
Unavailable revenue - notes receivable - - - -
Total deferred inflows of resources - - - -
Fund Balances
Restricted 1,327,159 58,991 1,386,150 -
Committed - - - 399,581
Assigned - 73,924 73,924 -
Total fund balances 1,327,159 132,915 1,460,074 399,581
Total liabilities, deferred inflow of
resouces, and fund balances 1,354,369$ 149,828$ 1,504,197$ 399,581$
106
December 31, 2018
Special Revenue
City of Crystal
Combining Balance Sheet -
Nonmajor Governmental Funds
7.2
Park
Improvement
Cable TV
Equipment Fleet
Information
Technology City Buildings Total
Total
Governmental
Funds
1,935,048$ 149,793$ 2,790,279$ 483,992$ 3,339,340$ 9,098,033$ 10,396,875$
- - - - - - 3,151
2,588 - - - - 2,588 2,588
- 3,124 - - - 3,124 205,328
29,711 - - - - 29,711 29,711
32,690 - - - - 32,690 32,690
2,000,037$ 152,917$ 2,790,279$ 483,992$ 3,339,340$ 9,166,146$ 10,670,343$
20,188$ -$ -$ 17,396$ 1,212$ 38,796$ 55,709$
11,730 - - - - 11,730 38,940
31,918 - - 17,396 1,212 50,526 94,649
2,525 - - - - 2,525 2,525
32,690 - - - - 32,690 32,690
35,215 - - - - 35,215 35,215
- - - - - - 1,386,150
1,932,904 152,917 2,790,279 466,596 3,338,128 9,080,405 9,080,405
- - - - - - 73,924
1,932,904 152,917 2,790,279 466,596 3,338,128 9,080,405 10,540,479
2,000,037$ 152,917$ 2,790,279$ 483,992$ 3,339,340$ 9,166,146$ 10,670,343$
107
Capital Projects
7.2
Capital
Projects
TIF Districts
Special Rev
Special
Projects Total
Permanent
Improvement
Revolving
Revenues
Property taxes 262,431$ -$ 262,431$ -$
Intergovernmental 215,305 19,289 234,594 -
Charges for services - - - -
Fine and forfeitures - 18,389 18,389 -
Miscellaneous
Interest 20,464 - 20,464 7,333
Other - 76,863 76,863 -
Total revenues 498,200 114,541 612,741 7,333
Expenditures
Current
General government - 9,572 9,572 -
Public safety - 45,133 45,133 -
Culture and recreation - 17,802 17,802 -
Economic development 647,702 - 647,702 -
Debt service
Principal 247,269 - 247,269 -
Interest and other charges 44,765 - 44,765 -
Capital outlay - 10,867 10,867 82,861
Total expenditures 939,736 83,374 1,023,110 82,861
Excess of revenues over
(under) expenditures (441,536) 31,167 (410,369) (75,528)
Other Financing Sources (Uses)
Proceeds from sale of capital asset - - - -
Transfers in - - - -
Transfers out - - - (7,736,840)
Total other financing
sources (uses) - - - (7,736,840)
Net change in fund balances (441,536) 31,167 (410,369) (7,812,368)
Fund Balances
Beginning of year 1,768,695 101,748 1,870,443 8,211,949
End of year 1,327,159$ 132,915$ 1,460,074$ 399,581$
108
Special Revenue
City of Crystal
Combining Statement of Revenues, Expenditures, and Changes
in Fund Balances - Nonmajor Governmental Funds
Year Ended December 31, 2018
7.2
Street
Maintenance
Major
Building
Replacement
Park
Improvement
Cable TV
Equipment Fleet
Information
Technology
City
Buildings
-$ -$ 1,946$ -$ 150,000$ 151,210$ 574,400$
- - 300,956 39,214 - - -
- - 1,000 - - - -
- - - - - - -
- - 27,516 2,253 - - 6,634
- - 481,967 - - - -
- - 813,385 41,467 150,000 151,210 581,034
- - - - - 915 104,645
- - - - - - -
- - 71,430 - - - -
- - - - - - -
- - - - - - -
- - - - - - -
- - 1,168,851 - 361,214 75,688 139,617
- - 1,240,281 - 361,214 76,603 244,262
- - (426,896) 41,467 (211,214) 74,607 336,772
- - 2,000 - 90,500 - -
- - 2,145,117 - 2,910,993 391,989 3,001,356
(1,696,974) (644,615) - - - - -
(1,696,974) (644,615) 2,147,117 - 3,001,493 391,989 3,001,356
(1,696,974) (644,615) 1,720,221 41,467 2,790,279 466,596 3,338,128
1,696,974 644,615 212,683 111,450 - - -
-$ -$ 1,932,904$ 152,917$ 2,790,279$ 466,596$ 3,338,128$
Capital Projects
109
7.2
110
(THIS PAGE LEFT BLANK INTENTIONALLY)
7.2
Capital
Projects
Total
Total Other
Governmental
Funds
Revenues
Property taxes 877,556$ 1,139,987$
Intergovernmental 340,170 574,764
Charges for services 1,000 1,000
Fine and forfeitures - 18,389
Miscellaneous -
Interest 43,736 64,200
Other 481,967 558,830
Total revenues 1,744,429 2,357,170
Expenditures
Current
General government 105,560 115,132
Public safety - 45,133
Culture and recreation 71,430 89,232
Economic development - 647,702
Debt service -
Principal - 247,269
Interest and other charges - 44,765
Capital outlay 1,828,231 1,839,098
Total expenditures 2,005,221 3,028,331
Excess of revenues over
(under) expenditures (260,792) (671,161)
Other Financing Sources (Uses)
Proceeds from sale of capital asset 92,500 92,500
Transfers in 8,449,455 8,449,455
Transfers out (10,078,429) (10,078,429)
Total other financing
sources (uses)(1,536,474) (1,536,474)
Net change in fund balances (1,797,266) (2,207,635)
Fund Balances
Beginning of year 10,877,671 12,748,114
End of year 9,080,405$ 10,540,479$
111
City of Crystal
Combining Statement of Revenues, Expenditures, and Changes
in Fund Balances - Nonmajor Governmental Funds
Year Ended December 31, 2018
7.2
City of Crystal
Statement of Revenues, Expenditures, and
Changes in Fund Balances -
Budget and Actual
TIF Districts - Special Revenue
Year Ended December 31, 2018
Original Final Actual Amounts
Revenues
Property taxes 180,000$ 180,000$ 262,431$ 82,431$
Intergovernmental - - 215,305 215,305
Interest 15,000 15,000 20,464 5,464
Total revenues 195,000 195,000 498,200 303,200
Expenditures
Current
Community development 194,800 194,800 647,702 452,902
Debt service
Principal 92,813 92,813 247,269 154,456
Interest and other charges 46,755 46,755 44,765 (1,990)
Total expenditures 334,368 334,368 939,736 605,368
Excess of revenues
under expenditures (139,368)$ (139,368)$ (441,536) (302,168)$
Fund Balance
Beginning of year 1,768,695
End of year 1,327,159$
112
Budgeted Amounts
Variance with
Final Budget
7.2
City of Crystal
Statement of Revenues, Expenditures, and
Changes in Fund Balances -
Budget and Actual
Permanent Improvement Revolving - Capital Projects
Year Ended December 31, 2018
Original Final Actual Amounts
Revenues
Property taxes 314,000$ 314,000$ -$ (314,000)$
Special assessments 20,000 20,000 - (20,000)
Intergovernmental 645,421 645,421 - (645,421)
Interest 70,200 70,200 7,333 (62,867)
Total revenues 1,049,621 1,049,621 7,333 (1,042,288)
Expenditures
Capital outlay 1,926,500 1,926,500 82,861 (1,843,639)
Total expenditures 1,926,500 1,926,500 82,861 (1,843,639)
Excess of revenues over
(under) expenditures (876,879) (876,879) (75,528) 801,351
Other Financing Sources (Uses)
Proceeds from sale of capital asset 24,000 24,000 - (24,000)
Transfers out - - (7,736,840) (7,736,840)
Total other financing
sources (uses) 24,000 24,000 (7,736,840) (7,760,840)
Net change in fund balances (852,879)$ (852,879)$ (7,812,368) (6,959,489)$
Fund Balance
Beginning of year 8,211,949
End of year 399,581$
113
Budgeted Amounts Variance with
Final Budget
7.2
City of Crystal
Statement of Revenues, Expenditures, and
Changes in Fund Balances -
Budget and Actual
Street Maintenance - Capital Projects
Year Ended December 31, 2018
Original Final Actual Amounts
Revenues
Property taxes 163,600$ 163,600$ -$ (163,600)$
Special assessments 73,000 73,000 - (73,000)
Interest 14,000 14,000 - (14,000)
Total revenues 250,600 250,600 - (250,600)
Expenditures
Current
Public works 750,000 750,000 - (750,000)
Excess of revenues over
(under) expenditures (499,400) (499,400) - 499,400
Other financing uses
Transfers out - - (1,696,974) (1,696,974)
Net change in fund balances (499,400)$ (499,400)$ (1,696,974) (1,197,574)$
Fund Balance
Beginning of year 1,696,974
End of year -$
114
Budgeted Amounts Variance with
Final Budget
7.2
City of Crystal
Statement of Revenues, Expenditures, and
Changes in Fund Balances -
Budget and Actual
Major Building Replacement - Capital Projects
Year Ended December 31, 2018
Original Final Actual Amounts
Revenues
Property taxes 574,400$ 574,400$ -$ (574,400)$
Investment income 300 300 - (300)
Total revenues 574,700 574,700 - (574,700)
Other Financing Uses
Transfers out - - (644,615) (644,615)
Net change in fund balances 574,700$ 574,700$ (644,615) (1,219,315)$
Fund Balance
Beginning of year 644,615
End of year -$
115
Budgeted Amounts Variance with
Final Budget
7.2
City of Crystal
Statement of Revenues, Expenditures, and
Changes in Fund Balances -
Budget and Actual
Street Reconstruction - Capital Projects
Year Ended December 31, 2018
Original Final Actual Amounts
Revenues
Property Taxes -$ -$ 163,600$ 163,600$
Special assessments 345,000 345,000 880,173 535,173
Intergovernmental 200,000 200,000 1,205,684 1,005,684
Investment income 22,000 22,000 123,750 101,750
Miscellaneous revenues - - 13,388 13,388
Total revenues 567,000 567,000 2,386,595 1,819,595
Expenditures
Public works - capital outlay - - 1,130,469 1,130,469
Excess of revenues over
(under) expenditures 567,000 567,000 1,256,126 689,126
Other Financing Sources
Transfers in - - 1,696,974 1,696,974
Net change in fund balances 567,000$ 567,000$ 2,953,100 2,386,100$
Fund Balance
Beginning of year 2,718,992
End of year 5,672,092$
116
Budgeted Amounts Variance with
Final Budget
7.2
City of Crystal
Statement of Revenues, Expenditures, and
Changes in Fund Balances -
Budget and Actual
Police Equipment Revolving - Capital Projects
Year Ended December 31, 2018
Original Final
Actual
Amounts
Revenues
Property taxes 151,900$ 151,900$ 151,900$ -$
Intergovernmental 3,000 3,000 - (3,000)
Interest 36,000 36,000 42,693 6,693
Miscellaneous revenues 15,000 15,000 13,214 (1,786)
Total revenues 205,900 205,900 207,807 1,907
Expenditures
Current
Public safety - - 12,053 12,053
Capital outlay 332,000 332,000 265,107 (66,893)
Total expenditures 332,000 332,000 277,160 (54,840)
Excess of revenues over
(under) expenditures (126,100) (126,100) (69,353) 56,747
Other Financing Sources
Proceeds from sale of capital asset 15,000 15,000 10,787 (4,213)
Net change in fund balances (111,100)$ (111,100)$ (58,566) 52,534$
Fund Balance
Beginning of year 2,870,691
End of year 2,812,125$
117
Budgeted Amounts
Variance with
Final Budget
7.2
118
City of Crystal
Fiduciary Funds
Agency funds are used to account for resources held by the City in a purely custodial capacity (assets
equal liabilities).
Hennepin Recycling Group
This fund is used to account for the collection, recycling, and disposal of solid waste activities of the
Hennepin Recycling Group.
7.2
01/01/18 Additions Deductions 12/31/18
Assets
Cash and investments 1,399,536$ 1,317,019$ 1,427,356$ 1,289,199$
Accrued interest - 16,763 16,763 -
Due from other governments 92,909 98,521 92,909 98,521
Total assets 1,492,445$ 1,432,303$ 1,537,028$ 1,387,720$
Liabilities
Accounts payable $ 49,991 110,578$ 49,991$ $ 110,578
Due to Hennepin Recycling Group 1,442,454 1,321,725 1,487,037 1,277,142
Total liabilities 1,492,445$ 1,432,303$ 1,537,028$ 1,387,720$
119
City of Crystal
Statement of Changes in Agency Fund Assets and Liabilities
Year Ended December 31, 2018
Hennepin Recycling Group
7.2
120
(THIS PAGE LEFT BLANK INTENTIONALLY)
7.2
121
STATISTICAL SECTION
7.2
2009 2010 2011 2012
Governmental Activities
Net investment in capital assets 26,770,714$ 26,510,303$ 25,896,999$ 26,574,766$
Restricted 13,971,055 13,110,714 13,618,934 14,772,670
Unrestricted 39,960,809 39,847,074 43,259,125 43,950,199
Total governmental activities net position 80,702,578$ 79,468,091$ 82,775,058$ 85,297,635$
Business-Type Activities
Net investment in capital assets 11,482,129$ 11,450,442$ 12,763,559$ 13,921,133$
Restricted - - - -
Unrestricted 10,912,321 11,563,188 11,319,800 10,416,828
Total business-type activities net position 22,394,450$ 23,013,630$ 24,083,359$ 24,337,961$
Primary Government
Net investment in capital assets 38,252,843$ 37,960,745$ 38,660,558$ 40,495,899$
Restricted 13,971,055 13,110,714 13,618,934 14,772,670
Unrestricted 50,873,130 51,410,262 54,578,925 54,367,027
Total primary government net position 103,097,028$ 102,481,721$ 106,858,417$ 109,635,596$
122
City of Crystal
Net Position By Component
(Accrual Basis of Accounting)
Last Ten Fiscal Years
(unaudited)
7.2
Table 1
2013 2014 2015 2016 2017 2018
28,944,085$ 34,052,606$ 39,903,269$ 40,421,924$ 40,534,551$ 41,195,367$
17,707,336 16,360,362 18,102,105 18,580,900 20,099,040 18,671,275
43,687,744 39,694,502 25,901,804 25,370,751 24,388,020 23,516,447
90,339,165$ 90,107,470$ 83,907,178$ 84,373,575$ 85,021,611$ 83,383,089$
15,655,823$ 15,448,191$ 19,057,632$ 19,889,415$ 22,283,455$ 21,693,069$
- - - - - -
10,114,825 9,397,654 7,484,722 8,575,762 9,572,606 10,836,119
25,770,648$ 24,845,845$ 26,542,354$ 28,465,177$ 31,856,061$ 32,529,188$
44,599,908$ 49,500,797$ 58,960,901$ 60,311,339$ 62,818,006$ 62,888,436$
17,707,336 16,360,362 18,102,105 18,580,900 20,099,040 18,671,275
53,802,569 49,092,156 33,386,526 33,946,513 33,960,626 34,352,566
116,109,813$ 114,953,315$ 110,449,532$ 112,838,752$ 116,877,672$ 115,912,277$
123
7.2
2009 2010 2011 2012
Expenses
Governmental activities
General government 2,057,275$ 2,115,117$ 2,084,038$ 1,992,060$
Public safety 5,317,912 5,979,472 6,247,082 5,605,172
Public works 5,646,176 6,075,243 3,997,978 4,345,225
Parks and recreation 2,467,528 2,494,542 2,475,881 2,110,078
Community development 2,839,775 1,656,365 2,168,725 2,180,213
Interest on long-term debt 501,300 531,689 503,301 498,884
Total governmental activities expenses 18,829,966 18,852,428 17,477,005 16,731,632
Business-type activities
Water 2,679,141$ 2,482,146$ 2,930,591$ 3,094,744$
Sanitary sewer 2,073,968 1,934,868 1,928,975 1,874,699
Storm drainage 1,019,228 501,194 600,371 782,897
Street lights 170,521 148,627 186,991 173,308
Recycling 318,487 322,072 331,918 329,106
Total business-type activities expenses 6,261,345 5,388,907 5,978,846 6,254,754
Total primary government expenses 25,091,311$ 24,241,335$ 23,455,851$ 22,986,386$
Program Revenues
Governmental activities
Charges for services
General government 232,748$ 205,696$ 278,336$ 240,501$
Public safety 324,387 305,692 357,536 389,769
Public works 14,504 13,832 - -
Parks and recreation 433,300 447,166 437,259 463,259
Community development 1,066,609 848,120 668,666 665,503
Operating grants and contributions 554,288 854,645 1,140,876 1,164,000
Capital grants and contributions 6,550,860 2,977,318 5,750,178 6,008,708
Total governmental activities program revenues 9,176,696 5,652,469 8,632,851 8,931,740
Business-type activities
Charges for services
Water 2,872,639 2,607,834 2,549,324 2,790,363
Sanitary sewer 1,887,052 1,856,830 1,913,165 1,919,725
Storm drainage 641,031 648,338 653,009 676,265
Street lights 154,708 161,702 162,722 162,119
Recycling 330,626 324,935 334,654 335,214
Operating grants and contributions 153,868 171,337 375,631 336,103
Capital grants and contributions - 71,385 938,060 1,695
Total business-type activities program revenues 6,039,924 5,842,361 6,926,565 6,221,484
Total primary government program revenues 15,216,620$ 11,494,830$ 15,559,416$ 15,153,224$
124
City of Crystal
Changes in Net Position
(Accrual Basis of Accounting)
Last Ten Fiscal Years
(unaudited)
7.2
Table 2
2013 2014 2015 2016 2017 2018
2,091,395$ 2,767,171$ 2,646,651$ 3,226,278$ 2,964,731$ 3,435,708$
5,900,593 6,085,801 6,438,462 7,685,700 7,546,777 7,250,306
2,655,529 5,034,894 5,132,260 6,511,486 4,224,253 4,285,522
2,548,785 2,622,407 2,816,220 2,759,211 3,128,275 3,299,792
1,570,132 1,358,486 1,287,427 1,174,426 1,616,752 1,159,700
586,388 529,448 555,121 563,308 541,919 518,975
15,352,822 18,398,207 18,876,141 21,920,409 20,022,707 19,950,003
3,092,654$ 3,928,301$ 4,131,931$ 3,047,910$ 2,970,228$ 3,105,611$
1,927,664 1,931,725 1,995,561 2,169,072 2,144,581 2,486,143
760,372 662,419 883,284 903,884 809,169 759,180
309,396 169,664 151,305 155,056 174,479 152,301
329,131 324,105 324,393 324,496 324,853 335,310
6,419,217 7,016,214 7,486,474 6,600,418 6,423,310 6,838,545
21,772,039$ 25,414,421$ 26,362,615$ 28,520,827$ 26,446,017$ 26,788,548$
256,133$ 354,802$ 228,357$ 320,899$ 279,603$ 243,710$
429,740 438,328 412,016 411,592 380,498 346,501
9 303 - - - -
500,561 465,769 483,741 515,056 513,457 541,486
902,000 1,739,829 761,469 767,755 796,152 1,255,396
667,622 595,463 634,881 728,449 659,450 699,638
6,877,723 2,613,480 5,533,872 7,393,250 7,473,350 2,337,789
9,633,788 6,207,974 8,054,336 10,137,001 10,102,510 5,424,520
2,637,830 2,601,186 2,962,818 3,076,263 3,138,317 3,265,849
1,939,539 2,020,522 2,079,431 2,193,599 2,300,866 2,578,065
717,005 760,884 809,067 867,598 1,058,549 1,174,131
169,015 181,720 186,125 191,261 195,122 195,324
334,162 334,101 334,493 334,926 340,250 340,410
414,534 388,648 1,669,332 1,859,532 680,740 547,760
1,319,522 11,612 - - - -
7,531,607 6,298,673 8,041,266 8,523,179 7,713,844 8,101,539
17,165,395$ 12,506,647$ 16,095,602$ 18,660,180$ 17,816,354$ 13,526,059$
125
7.2
2009 2010 2011 2012
Net (Expense) Revenue
Governmental activities (9,653,270)$ (13,199,959)$ (8,844,154)$ (7,799,892)$
Business-type activities (221,421) 453,454 947,719 (33,270)
Total primary government net expense (9,874,691)$ (12,746,505)$ (7,896,435)$ (7,833,162)$
General Revenues and Other Changes
in Net Position
Governmental activities
Property taxes 9,854,813$ 9,231,751$ 9,318,013$ 9,710,807$
Grants and contributions not restricted
to specific programs 2,074,108 1,616,214 1,618,291 1,478,220
Unrestricted investment earnings 991,016 1,025,552 1,036,201 540,883
Gain on disposition of capital assets 28,242 21,072 38,413 45,139
Transfers (184,508) 70,883 140,203 (177,580)
Total governmental activities 12,763,671 11,965,472 12,151,121 11,597,469
Business-type activities
Unrestricted investment earnings 283,159 236,609 240,213 108,888
Gain on disposition of capital assets 5,031 - 22,000 1,404
Transfers 184,508 (70,883) (140,203) 177,580
Total business-type activities 472,698 165,726 122,010 287,872
Total primary government 13,236,369$ 12,131,198$ 12,273,131$ 11,885,341$
Change in Net Position
Governmental activities 3,110,401$ (1,234,487)$ 3,306,967$ 3,797,577$
Business-type activities 251,277 619,180 1,069,729 254,602
Total primary government 3,361,678$ (615,307)$ 4,376,696$ 4,052,179$
126
City of Crystal
Changes in Net Position
(Accrual Basis of Accounting)
Last Ten Fiscal Years
(unaudited)
7.2
Table 2
2013 2014 2015 2016 2017 2018
(5,719,034)$ (12,190,233)$ (10,821,805)$ (11,783,408)$ (9,920,197)$ (14,525,483)$
1,112,390 (717,541) 554,792 1,922,761 1,290,534 1,262,994
(4,606,644)$ (12,907,774)$ (10,267,013)$ (9,860,647)$ (8,629,663)$ (13,262,489)$
9,561,519$ 9,621,212$ 9,670,252$ 9,955,391$ 10,469,019$ 11,193,252
1,472,223 1,664,043 1,701,220 1,712,591 1,753,898 1,850,588
96,678 350,648 303,263 445,296 302,344 542,106
47,080 48,900 27,706 82,795 91,114 231,971
(252,756) 273,735 (1,577,880) 53,732 (2,048,142) 502,049
10,924,744 11,958,538 10,124,561 12,249,805 10,568,233 14,319,966
16,241 66,473 53,517 47,353 42,244 98,002
51,300 - 12,500 6,441 9,964 -
252,756 (273,735) 1,577,880 (53,732) 2,048,142 (502,049)
320,297 (207,262) 1,643,897 62 2,100,350 (404,047)
11,245,041$ 11,751,276$ 11,768,458$ 12,249,867$ 12,668,583$ 13,915,919
5,205,710$ (231,695)$ (697,244)$ 466,397$ 648,036$ (205,517)$
1,432,687 (924,803) 2,198,689 1,922,823 3,390,884 858,947
6,638,397$ (1,156,498)$ 1,501,445$ 2,389,220$ 4,038,920$ 653,430$
127
7.2
2009 2010 2011 2012
General Fund
Nonspendable
Inventory -$ -$ -$ -$
Committed
Compensated absences - - 869,801 882,942
Unreserved 7,405,422 7,613,583 - -
Unassigned - - 6,645,169 6,514,525
Total general fund 7,405,422$ 7,613,583$ 7,514,970$ 7,397,467$
All Other Governmental Funds
Reserved 5,252,033$ 5,383,786$ -$ -$
Nonspendable
Prepaid items - - - -
Restricted
Housing and redevelopment assistance - - 2,468,311 1,595,856
Murl revolving fund - - 29,775 32,852
Debt service - - 3,831,273 4,405,942
10% lawful gambling contribution - - 6,323 3,795
DWI-related enforcement, training and education - - 38,188 41,723
Committed
Housing and redevelopment assistance - - 3,541,003 3,754,395
Capital outlay - city wide - - 8,607,284 8,848,629
Capital outlay - replace and
renovation of city bldgs.- - 9,645,755 10,308,963
Capital outlay - street reconstruction - - 4,028,317 2,463,377
Capital outlay - police equipment - - 3,184,679 3,191,297
Capital outlay - cable TV equipment - - - -
Capital outlay - fire equipment - - 629,063 636,661
Capital outlay - street maintenance - - 1,908,638 1,872,925
Capital outlay - fleet - - - -
Capital outlay - information technology - - - -
Assigned
Police department purposes - - 7,138 32,058
Park and recreation department purposes - - 33,275 25,805
Other purposes - - 12,275 12,371
Unassigned - - - -
Unreserved, reported in
Special revenue funds 4,702,340 5,158,888 - -
Capital projects funds 26,544,020 25,553,862 - -
Total all other governmental funds 36,498,393$ 36,096,536$ 37,971,297$ 37,226,649$
Note: The City implemented GASB Statement No. 54 in 2011. Years prior to 2011 have not been restated.
128
City of Crystal
Fund Balances of Governmental Funds
(Modified Accrual Basis of Accounting)
Last Ten Fiscal Years
(unaudited)
7.2
Table 3
2013 2014 2015 2016 2017 2018
-$ -$ 27,488$ 15,519$ 19,169$ 23,941$
840,514 801,697 782,627 817,760 753,962 774,914
- - -
6,862,599 6,594,097 6,382,810 6,220,496 6,119,325 6,181,591
7,703,113$ 7,395,794$ 7,192,925$ 7,053,775$ 6,892,456$ 6,980,446$
-$ -$ -$ -$ -$ -$
78,455 - 8,450 - - -
1,593,243 1,655,414 1,703,927 1,783,870 1,768,695 1,327,159
35,651 39,519 - - - -
5,440,681 5,528,971 6,437,512 5,750,342 5,312,296 6,079,365
1,945 445 - - - -
59,357 55,399 40,626 32,375 27,824 58,991
3,914,649 3,974,329 4,247,836 4,215,316 3,846,024 3,931,334
8,647,926 8,632,632 8,498,360 8,357,889 8,211,949 399,581
10,286,268 6,964,198 - 105,509 644,615 3,338,128
2,261,153 2,347,934 2,074,645 2,132,454 2,718,992 5,672,092
3,138,748 3,122,050 3,126,443 3,108,331 2,870,691 2,812,125
- - 35,487 72,531 111,450 152,917
637,970 643,352 648,635 585,905 212,683 1,932,904
1,854,710 1,251,683 1,420,778 1,590,262 1,696,974 -
- - - - - 2,790,279
- - - - - 466,596
18,531 14,873 22,453 40,631 40,631 40,631
26,718 24,686 23,684 20,729 20,729 20,729
11,855 8,060 9,042 7,755 12,564 12,564
- - (626,968) - - -
- - - - - -
- - - - - -
38,007,860$ 34,263,545$ 27,670,910$ 27,803,899$ 27,496,117$ 29,035,395$
129
7.2
2009 2010 2011 2012
Revenues
Property taxes 9,844,690$ 9,200,159$ 9,323,325$ 9,714,591$
Special assessments 3,034,025 2,102,306 2,718,038 3,540,032
Licenses, permits and inspections 616,527 666,542 674,693 670,162
Intergovernmental 2,553,124 3,043,371 3,944,380 2,508,451
Charges for sales and/or services 1,085,841 769,153 759,262 826,023
Administrative services provided to other funds 303,159 273,653 294,594 278,835
Fines and forfeitures 404,871 426,922 353,125 316,496
Interest 1,165,835 913,481 801,534 669,524
Net increase (decrease) in fair value of investments (202,228) 84,828 206,953 (142,882)
Miscellaneous 1,036,102 484,731 379,636 450,274
Total revenues 19,841,946 17,965,146 19,455,540 18,831,506
Expenditures
General government 2,062,105 2,019,487 1,898,990 2,030,717
Public safety 5,068,676 5,722,179 5,992,955 5,429,833
Public works 1,169,753 1,912,121 1,450,552 1,315,019
Parks and recreation 1,919,783 1,948,935 1,955,070 1,978,397
Community development 1,451,652 1,425,627 1,382,770 1,408,056
Capital outlay 9,247,869 4,112,480 4,528,799 7,052,365
Debt service -
Principal 1,118,889 1,599,619 1,810,083 1,500,682
Interest and other fees 507,246 549,775 529,299 538,947
Total expenditures 22,545,973 19,290,223 19,548,518 21,254,016
Excess (Deficiency) of Revenues
Over (Under) Expenditures (2,704,027) (1,325,077) (92,978) (2,422,510)
Other Financing Sources (Uses)
Issuance of bonds 4,564,778 1,000,222 1,705,000 2,635,000
Issuance of refunding bonds - 1,204,778 - -
Issuance of notes payable - 58,501 - -
Refunded bonds redeemed - (1,204,778)- -
Premium on bonds issued - - - 70,531
Proceeds from sale of property and equipment 28,592 32,158 41,314 56,169
Discount on bonds issued (43,680)- (17,391)-
Transfers in 987,463 1,135,907 1,646,572 2,865,486
Transfers out (953,500) (1,095,407) (1,506,369) (2,791,827)
Total other financing sources (uses)4,583,653 1,131,381 1,869,126 2,835,359
Net Change in Fund Balances 1,879,626$ (193,696)$ 1,776,148$ 412,849$
Debt service as a percentage of noncapital expenditures 12%14%16%14%
130
City of Crystal
Changes in Fund Balances of Governmental Funds
(Modified Accrual Basis of Accounting)
Last Ten Fiscal Years
(unaudited)
7.2
Table 4
2013 2014 2015 2016 2017 2018
9,641,513$ 9,621,688$ 9,664,690$ 9,966,978$ 10,569,176$ 11,231,206$
3,467,243 2,873,099 3,328,989 3,950,081 4,468,266 3,452,454
843,741 924,967 808,695 773,479 785,451 740,192
3,046,762 2,930,382 3,175,821 3,062,273 3,133,642 3,641,377
899,525 1,718,581 932,081 913,329 859,087 935,558
291,368 - - - - -
397,759 405,546 355,566 322,009 359,917 251,732
473,660 331,758 291,400 245,865 259,657 511,542
(379,426) 9,442 4,825 59,015 - -
502,878 111,496 409,295 1,046,909 354,302 595,766
19,185,023 18,926,959 18,971,362 20,339,938 20,789,498 21,359,827
2,158,164 2,198,872 2,289,245 2,517,924 2,639,028 2,580,042
5,679,203 5,692,868 5,841,029 6,143,480 6,589,235 7,028,892
1,311,719 2,246,292 1,327,418 2,077,476 1,455,074 1,391,736
2,029,179 2,081,162 2,229,890 2,240,202 2,379,532 2,546,771
1,464,562 1,252,952 1,197,652 1,108,920 1,279,318 1,548,967
7,327,877 7,209,039 14,022,519 7,124,563 9,829,622 3,255,645
1,358,811 2,275,042 1,379,264 2,481,027 1,968,341 1,587,269
564,181 554,063 536,202 591,516 551,467 548,573
21,893,696 23,510,290 28,823,219 24,285,108 26,691,617 20,487,895
(2,708,673) (4,583,331) (9,851,857) (3,945,170) (5,902,119) 871,932
3,630,000 - 2,550,000 3,330,000 4,665,000 -
- - - - - -
- - - - - -
- - - - - -
58,626 - 92,777 99,664 273,843 -
57,310 82,547 33,224 122,359 91,114 253,287
- - - - - -
895,350 2,347,933 931,436 673,132 1,944,997 10,580,478
(845,756) (1,898,783) (551,084) (286,146) (1,541,936) (10,078,429)
3,795,530 531,697 3,056,353 3,939,009 5,433,018 755,336
1,086,857$ (4,051,634)$ (6,795,504)$ (6,161)$ (469,101)$ 1,627,268$
13%17%13%18%15%12%
131
7.2
132
(THIS PAGE LEFT BLANK INTENTIONALLY)
7.2
City of CrystalTaxable and Estimated Market Values of Taxable PropertyLast Ten Fiscal Years(unaudited)Table 5Real PropertyTotalEstimatedFiscalCommercial PersonalTaxableActualYearResidential Apartments IndustrialPropertyMarket ValueMarket Value2009 1,480,780,567$ 111,623,000$ 190,548,200$ 11,717,000$ 1,794,668,767$ 39.789 % 1,799,864,267$ 99.71 %2010 1,359,108,500 109,744,000 177,950,600 11,371,300 1,658,174,400 44.2701,663,404,700 99.692011 1,214,915,800 101,790,000 162,932,900 11,554,800 1,491,193,500 48.7641,496,063,900 99.672012 1,019,240,647 100,691,000 161,022,000 11,783,600 1,292,737,247 52.9291,457,765,100 88.682013864,841,494 100,076,440 159,257,200 12,586,700 1,136,761,834 57.6301,311,691,400 86.662014864,287,852 101,813,000 156,849,300 12,661,700 1,135,611,852 56.0151,440,635,800 78.832015 1,020,212,713 104,420,800 155,744,300 13,315,900 1,293,693,713 50.4981,484,886,100 87.122016 1,153,327,871 154,241,560 159,609,700 13,517,900 1,480,697,031 53.2071,620,984,300 91.352017 1,280,234,014 167,116,280 174,031,700 13,922,200 1,635,304,194 50.3601,767,035,000 92.552018 1,405,036,164 178,406,933 180,514,900 15,766,500 1,779,724,497 50.4161,782,801,500 99.83Source: Hennepin County133 RateTaxDirectTotalTotal TaxableMarket ValueActualof Estimatedas a PercentMarket Value7.2
Fiscal
Year
2009 38.288 % 1.501 % 0.000 % 39.789 % 27.214 % 40.413 % 7.154 %
2010 40.285 1.400 2.585 44.270 28.621 42.640 8.138
2011 44.529 1.418 2.817 48.764 34.387 45.840 9.172
2012 48.219 1.588 3.122 52.929 32.810 48.231 9.523
2013 52.520 1.480 3.630 57.630 32.347 49.461 10.089
2014 51.268 1.241 3.506 56.015 34.777 49.959 10.561
2015 49.100 1.398 0.000 50.498 33.226 46.398 9.785
2016 51.831 1.376 0.000 53.207 33.833 45.356 9.530
2017 48.949 1.411 0.000 50.360 31.612 44.087 9.319
2018 49.168 1.248 0.000 50.416 31.957 42.808 8.973
Note: Information reflects total tax rates levied by each entity. Tax rates are expressed in terms of "net tax capacity."
A property's tax capacity is determined by multiplying its taxable market value by a state-determined class rate.
Class rates vary by property type and change periodically based on state legislation.
* Includes Metropolitan Council, Metropolitan Transit, Metropolitan Mosquito Control, Hennepin Parks, Park
Museum, and the Hennepin County Regional Railroad Authority.
Source: Hennepin County
134
City of Crystal
Property Tax Rates -
Direct and Overlapping Governments
Last Ten Fiscal Years
(unaudited)
City Direct Tax Rates
Basic
Rate HRA
G.O.
Debt Service
Hennepin
County
Special
Districts *
Total
City
Direct
Tax Rate
Robbinsdale
ISD #281
7.2
Table 6
114.570 % 0.012 % 0.237 % 114.819 %
123.669 0.013 0.229 123.911
138.163 0.014 0.231 138.408
143.493 0.015 0.276 143.784
149.527 0.016 0.297 149.840
151.312 0.016 0.303 151.631
139.907 0.015 0.285 140.207
141.926 0.014 0.282 142.222
135.378 0.013 0.250 135.641
134.154 0.000 0.234 134.388
135
Robbinsdale
ISD #281
Market
Value Rate
Total
Overlapping
Tax Rate
Total
Tax
Capacity
Tax Rate
Crystal
Debt Service
Market
Value Rate
7.2
Table 7
Tax Tax
Taxpayer Type of Property Capacity * Rank Capacity * Rank
Crystal Shopping Center Assoc. Shopping center 460,950$ 1 2.68 % 419,250$ 1 2.00 %
Crystal Village Apartments, LLC Apartments 234,263 2 1.36 189,538 4 0.90
Crystal Gallery Developers Shopping center 220,310 3 1.28 159,250 6 0.76
Cedarwood Investors LLC Apartments 193,963 4 1.13
Smith-Sturm Investment Co. Apartments 189,213 5 1.10 140,013 7 0.67
Crystal Medical Building, LLC Office/clinic 180,850 6 1.05
Target Corporation Department store 159,250 7 0.93 205,250 3 0.97
Minnesota Senior Living LLC Apartments 151,275 8 0.88
SuperValu, Inc. Grocery store 145,330 9 0.85 169,250 5 0.81
Crystal Leased HSG Assoc. Housing 143,343 10 0.83
Lanel Financial Group Apartments 404,664 2 1.93
Winpark One Two, LLC Industrial 133,250 8 0.64
Industrial Equities Group, LLC Office/warehouse 114,250 9 0.54
Core Mpls. Portfolio LLC Industrial 69,250 10 0.33
2,078,747$ 12.09 % 2,003,965$ 9.56 %
Total City of Crystal tax capacity 17,168,288$ 20,966,573$
* Tax Capacity is computed by applying class rate percentages, specific to each type of property classification, against Taxable Market
Value. Class rate percentages vary depending upon the type of property. The formulas and class rates for converting Taxable Market
Value into Tax Capacity represent a basic element of the Minnesota property tax system and are subject to annual revisions by the
State.
Source: Hennepin County
136
City of Crystal
Principal Property Taxpayers
Current Year and Nine Years Ago
(unaudited)
Percentage
of Total Tax
Capacity
Percentage
of Total Tax
Capacity
2018 2009
7.2
CurrentDelinquentTotalOutstandingFiscalTaxTaxTaxTaxDelinquentYearLevyCollectionsCollections CollectionsTaxes20097,937,517$ 7,787,343$ 98.11 %150,174$ 7,937,517$ 100.00 %-$ 0.00 %20108,849,440 8,675,169 98.03174,271 8,849,440 100.00- 0.0020118,900,044 8,780,526 98.66119,518 8,900,044 100.00- 0.0020129,258,402 9,139,252 98.71119,150 9,258,402 100.00- 0.0020139,159,895 9,090,927 99.2586,755 9,177,682 100.19(17,787) -0.1920149,217,153 9,144,399 99.2166,791 9,211,190 99.945,963 0.0620159,288,837 9,217,089 99.2361,506 9,278,595 99.8910,242 0.1120169,954,054 9,871,608 99.1773,467 9,945,075 99.918,979 0.09201710,606,338 10,538,868 99.3649,666 10,588,534 99.8317,804 0.17201811,172,069 11,093,852 99.3011,093,852 99.3060,167 0.54Source: City of Crystal Finance Department recordsCity of CrystalProperty Tax Levies and CollectionsLast Ten Fiscal Years(unaudited)137 Table 8DelinquentTaxes as aPercentage ofTax LevyTotalCollections asa Percentageof Tax LevyPercentageof LevyCollected7.2
2009 2010 2011 2012 2013
Taxable market value - amounts 1,794,668$ 1,658,174$ 1,491,193$ 1,292,737$ 1,136,761$
expressed in thousands
Debt limit (3% of taxable market value) 53,840,000$ 49,745,000$ 44,736,000$ 38,782,000$ 34,103,000$
Less debt applicable to debt limit:
Total bonded debt 12,824,778 12,310,891 12,282,995 13,518,886 15,926,532
Deductions -
Tax increment bonds 260,000 - - - -
Special assessment bonds 9,525,000 8,915,000 9,880,000 11,770,000 14,191,612
9,785,000 8,915,000 9,880,000 11,770,000 14,191,612
Total debt applicable to debt limit 3,039,778 3,395,891 2,402,995 1,748,886 1,734,920
Legal debt margin 50,800,222$ 46,349,109$ 42,333,005$ 37,033,114$ 32,368,080$
Total debt applicable to the debt limit as
a percentage of the debt limit 5.6%6.8%5.4%4.5%5.1%
Source: City of Crystal Finance Department records
138
City of Crystal
Legal Debt Margin Information
Last Ten Fiscal Years
(unaudited)
7.2
Table 9
2014 2015 2016 2017 2018
1,135,611$ 1,293,694$ 1,339,237$ 1,482,067$ 1,637,892$
34,068,000$ 38,811,000$ 40,177,000$ 44,462,000$ 49,137,000$
13,740,062 15,099,795 15,900,940 19,068,514 17,695,020
- - - - -
12,559,803 14,083,544 15,050,000 19,068,514 17,695,020
12,559,803 14,083,544 15,050,000 19,068,514 17,695,020
1,180,259 1,016,251 850,940 - -
32,887,741$ 37,794,749$ 39,326,060$ 44,462,000$ 49,137,000$
3.5% 2.6% 2.1% 0.0% 0.0%
139
7.2
Table 10BusinessTypeActivitiesG.O. G.O.TaxSpecialG.O.TotalFiscalG.O. IncrementAssessmentNotesPrimaryPerYearBondsBondsBondsPayableGovernmentCapita2009 3,039,778$ 260,000$ 9,525,000$ -$ -$ 12,824,778$ 0.71 % 1.10 % 583$ 2010 3,395,891 - 8,915,000 46,100 - 12,356,991 0.75 1.02 558 2011 2,402,995 - 9,880,000 46,100 - 12,329,095 0.83 0.97 556 2012 1,741,221 - 11,768,751 35,081 - 13,545,053 1.05 1.03 604 2013 1,734,920 - 14,191,612 - - 15,926,532 1.40 1.16 703 2014 1,180,259 - 12,559,803 - - 13,740,062 1.21 0.96 612 2015 1,016,251 - 14,083,544 - - 15,099,795 1.17 1.01 661 2016 850,940 - 15,281,867 - - 16,132,807 1.09 1.05 706 2017 - - 19,068,514 - - 19,068,514 1.17 1.17 832 2018 - - 17,695,020 - - 17,695,020 0.99 1.07 760 Sources: Outstanding Debt - City of Crystal Finance Department RecordsTaxable Market Value - Hennepin County Assessor DepartmentPersonal income - U.S. Department of Commerce, Bureau of Economic AnalysisPopulation - U.S. Census Bureau for census years and estimates by Metropolitan Council for non-census yearsCity of CrystalLast Ten Fiscal Years(unaudited)Percentageof TaxablePercentageof Ratios of Outstanding Debt by TypeGovernmentalActivitiesMarketValuePersonalIncome140 7.2
Table 11
Less
Amount
Restricted
Fiscal G.O.for Debt
Year Bonds Service Total
2009 3,039,778$ 272,006$ 2,767,772$ 0.15 %125.73 %
2010 3,395,891 272,312 3,123,579 0.19 141.01
2011 2,402,995 282,456 2,120,539 0.14 95.66
2012 1,741,221 291,284 1,449,937 0.11 64.68
2013 1,734,920 294,217 1,440,703 0.13 63.62
2014 1,180,259 455,740 724,519 0.06 32.29
2015 1,016,251 456,775 559,476 0.04 24.48
2016 850,940 298,069 552,871 0.04 24.19
2017 - - - 0.00 0.00
2018 - - - 0.00 0.00
Note: Details regarding the city's outstanding debt can be found in the notes to the financial statements.
Sources: The amount of G.O. bonds is from Table 9 - Legal Debt Margin Information
The amount restricted for Debt Service is the sum of fund balances for applicable issues
Property value data is from Table 5 - Taxable and Estimated Market Values of Taxable Property
Population data is from Table 13 - Demographic and Economic Statistics
141
City of Crystal
Ratios of General Bonded Debt Outstanding
Last Ten Fiscal Years
(unaudited)
Per
Capita
Percentage
of Taxable
Market
Value of
Property
7.2
City of Crystal
Direct and Overlapping Governmental Activities Debt
As of December 31, 2018
(unaudited)
Net General
Obligation Amount
Bonded Debt Applicable to
Jurisdiction Outstanding Government
Direct -
City of Crystal 17,695,020$ 100.00 % 17,695,020$
Overlapping -
Robbinsdale ISD #281 189,776,056 18.97 36,000,518
Hennepin County 1,056,890,798 1.10 11,625,799
Hennepin Suburban Park District 43,575,708 1.53 666,708
Hennepin Regional RR Authority 24,600,380 1.53 376,386
Metropolitan Council / Transit 75,902,689 0.52 394,694
1,390,745,631 49,064,105
Total 1,408,440,651$ 66,759,125$
* Overlapping governments are those that coincide, at least in part, with the geographic boundaries
of the City of Crystal. This schedule estimates the portion of the outstanding debt of those
overlapping governments that is borne by the residents and businesses of the City of Crystal.
This process recognizes that, when considering the City of Crystal's ability to issue and repay
long-term debt, the entire debt burden borne by the residents and businesses should be taken
into account.
The percentage of overlapping debt is estimated using tax capacity. Applicable percentages
were estimated by determining the portion of each overlapping government's tax capacity within
the City of Crystal's boundaries and dividing it by that government's total tax capacity.
Source: City of Crystal Finance Department records and Hennepin County
142
Table 12
Percentage
Applicable to
Government *
7.2
Table 13
Per Capita Total City District-Wide
Fiscal Personal Personal School
Year Population Income Income Enrollment
2009 22,014 52,999$ 1,166,719,986$ 11,644 10.4 %
2010 22,151 54,949 1,217,175,299 11,662 9.3
2011 22,168 57,476 1,274,127,968 11,734 8.2
2012 22,417 58,898 1,320,316,466 11,720 5.9
2013 22,645 60,601 1,372,309,645 11,827 5.2
2014 22,436 63,901 1,433,682,836 11,821 4.3
2015 22,852 65,231 1,490,658,812 12,690 3.7
2016 22,855 67,427 1,541,044,085 12,630 3.7
2017 22,929 71,067 1,629,495,243 12,011 3.4
2018 23,287 71,067 1,654,937,229 11,957 2.8
Sources:
- Population - U.S. Census Bureau for census years and estimates by Metropolitan Council for non-census years.
- Per capita personal income - U.S. Department of Commerce, Bureau of Economic Analysis. The per capita
personal income used is that for Hennepin County, MN, in which the City resides. It is the smallest
region applicable to the City that this information is available for. The current year is reported same as
the prior year due to data not yet being available at the time this report was prepared.
- Total City personal income - These estimated amounts are derived by multiplying the per capita personal
income amount by the City's population for each applicable year.
- District-wide school enrollment - Counts are provided by Robbinsdale ISD #281 as of December 31 of each
year. ISD #281 serves households in all or parts of Crystal, Brooklyn Center, Brooklyn Park, Golden
Valley, New Hope, Plymouth and Robbinsdale.
- Unemployment rate - Minnesota Department of Employment and Economic Development. Rates are an
adjusted yearly average.
143
Unemployment
Rate
City of Crystal
Demographic and Economic Statistics
Last Ten Fiscal Years
(unaudited)
7.2
Number of Number of
Employer Employees Rank Employees Rank
Volunteers of America -
Crystal Care Center 200 1 5.10 %183 2 4.65 %
Target 185 2 4.72 200 1 5.09
Cub Foods 156 3 3.98 150 3 3.81
City of Crystal 101 4 2.58 102 4 2.59
Kilmer Electric Co., Inc.96 5 2.45
Buffalo Wild Wings 65 6 1.66
Almsted's Crystal Super Value 60 7 1.53
McDonald's 44 8 1.12
Minnesota Grinding 40 9 1.02
Perkins 37 10 0.94
Crystal Super Value 60 5 1.53
Thrift-Way Supermarket 45 6 1.14
Featherlite Exhibits 25 7 0.64
Qwest (now CenturyLink)*8 0.00
Wells Fargo Bank, N.A.*9 0.00
Unknown **10 0.00
984 25.10 %765 19.45 %
Estimated total employment 3,922 3,932
* Qwest and Wells Fargo Bank are large employers within the City of Crystal but no longer give out local
employment numbers.
** Data is NOT available from the Minnesota Department of Employment and Economic Development, as such data is
classified as private. No source of data for this table was available that included rankings down to 10.
Sources: - Principal employers are a result of telephone surveys of employers by Springsted, Inc., in conjunction
with city bond sales.
- Estimated Total Employment is per the Minnesota Department of Employment and Economic
Development web site.144
City of Crystal
Prinicpal Employers
Current Year and Nine Years Ago
(unaudited)
2018 2009
Table 14
Percentage
of Total
City
Employment
Percentage
of Total
City
Employment
7.2
Function2009 2010 2011 2012 2013 2014 2015 2016 2017 2018General Government12 11 11 11 11 11 11 11 99Public Safety Police Officers29 28 30 30 28 27 30 30 33 33Civilians7686654455Public Works Engineering3333333333Maintenance9878888888Parks and Recreation Park maintenance6666666666Recreation5555555655Community Development7776677677Utilities Water / sanitary sewer / storm drainage899899910101086 83 86 83 82 81 83 84 86 86Source: City of Crystal Finance Department recordsTable 15City of CrystalFull-Time City Government Employees By Function Last Ten Fiscal Years(unaudited)145 7.2
Function 2009 2010 2011 2012 2013
General Government
Administration
Employee recruitments 15 11 16 19 19
Licenses issued 976 1,069 1,057 1,159 1,262
Public Safety
Police
Calls for service 30,007 30,681 32,464 31,878 31,624
Citations issued 5,548 5,369 6,199 6,133 6,622
Criminal cases investigated 1,490 1,426 1,261 1,771 1,123
Total arrests 1,265 1,081 1,184 1,226 925
Animal control incidents 709 334 501 471 469
Dog licenses issued 350 344 315 287 219
Fire (West Metro Fire-Rescue District)
Calls for service 1,346 1,451 1,641 1,349 1,448
Inspections, plan reviews and
consultations 768 796 899 734 747
Public Works
Miles of streets sealcoated 4 5 12 6 5
Miles of streets reconstructed 7 - 4 6 6
Phase of 16-phase street project Phase 10 Phase 11 Phase 12 Phase 13
Parks and Recreation
Recreation program participants 8,375 8,459 9,301 9,132 10,600
No. of teams in team sports 155 172 195 221 212
No. of participants in special events 3,822 4,040 4,647 4,142 3,897
No. of rental groups 162 228 208 185 229
No. of facility rentals **********
Community Center permits 672 659 600 657 684
Pool attendance 33,413 35,681 33,220 31,127 30,009
Community Development
Permit inspections 3,065 2,664 2,331 2,350 2,868
Code enforcement incidents 1,604 1,434 1,378 1,319 1,332
Rental housing - number of licensed units 2,343 2,431 2,457 2,575 2,788
Point of sale inspections/re-inspections 726 416 424 385 468
Planning Commission applications 19 8 18 8 16
Utilities
Water system
Average residential consumption
(million gallons / day)1.53 Mg/d 1.45 Mg/d 1.33 Mg/d 1.46 Mg/d 1.34 Mg/d
* The sealcoat program was phased out after 2013. Mill and overlay will be used going forward.
** Effective 2016, it was determined that number of facility rentals was a better measure of reporting than number of rental groups.
Only that indicator will be presented on a prospective basis.
*** The point of sale program was phased out in 2015-2016.
Source: Various city departments
146
City of Crystal
Operating Indicators By Function
Last Ten Fiscal Years
(unaudited)
7.2
Table 16
2014 2015 2016 2017 2018
22 26 17 20 15
1,333 1,294 1,323 954 840
34,362 31,077 30,860 27,296 32,863
6,230 5,798 5,771 4,710 4,465
1,172 1,208 1,372 1,362 1,525
767 859 926 826 906
447 457 509 391 303
258 298 278 223 195
1,663 1,514 1,573 1,922 1,856
808 824 746 880 691
***- -
- 5 5 5 -
Phase 14 Phase 15 Phase 16
13,847 12,149 11,082 11,623 13,615
212 216 249 228 246
5,425 4,542 5,382 4,690 6,292
218 201 ******
**** 711 1,022 970
680 671 862 957 776
28,042 28,092 26,769 27,098 30,350
2,779 2,771 2,430 2,835 2,704
1,482 1,539 1,514 1,405 1,317
2,859 2,548 2,915 2,831 2,715
442 404 13 13 ***
12 6121113
1.26 Mg/d 1.22 Mg/d 1.20 Mg/d 1.60 Mg/d 1.40 Mg/d
147
7.2
Function 2009 2010 2011 2012 2013 2014
Public Safety
Police
Number of stations 111111
Public Works
Street maintenance
Miles of city street 92 92 92 91 91 91
Parks and Recreation
Recreation
Number of park acres 243 243 244 253 253 253
Number of parks 282828282828
Number of parks with playground apparatus 19 19 20 20 20 20
Number of tennis courts 13 13 13 12 12 12
Number of supervised ice skating rinks
Hockey 444444
General use 333333
Number of baseball fields
General use 222222
Grogan Park (Little League) Fields 333333
Number of softball fields
Reservable 777777
Non-reservable (neighborhood park backstop)16 16 16 16 15 15
Number of full-size soccer fields 112222
Number of skateboard parks 111111
Community Center
Number of centers 111111
Waterslide / swimming pool
Number of facilities 111111
Utilities
Water system
Miles of water main (owned by city)909090909090
Number of service connections 7,864 7,885 7,888 7,803 7,812 7,817
Number of fire hydrants 808 809 819 820 821 821
Sewer system
Miles of sanitary sewer 87 87 87 87 87 87
Number of service connections 7,912 7,910 7,911 7,821 7,827 7,837
Number of lift stations 777777
Storm drainage system
Miles of storm sewer 60 64 64 66 74 76
Number of lift stations 111111
Note: No capital asset indicators are available for the general government and community development functions.
Source: Various city departments
148
City of Crystal
Capital Asset Statistics By Function
Last Ten Fiscal Years
(unaudited)
7.2
Table 17
2015 2016 2017 2018
1111
91 90 90 90
253 263 263 261
28 27 27 26
20 19 19 19
12777
4433
3322
2222
3333
7775
10777
2222
1111
1111
1111
90 90 93 93
7,830 7,841 7,841 7,849
823 823 797 797
87 87 87 87
7,845 7,855 7,855 7,863
7777
76 77 65 65
1111
149
7.2
City of Crystal
Hennepin County, Minnesota
Minnesota Legal Compliance
December 31, 2018
7.2
City of Crystal
Table of Contents
Minnesota Legal Compliance 1
7.2
1
Minnesota Legal Compliance
Independent Auditor's Report
Honorable Mayor and Members
of the City Council
City of Crystal
Crystal, Minnesota
We have audited, in accordance with auditing standards generally accepted in the United States of
America, the financial statements of the governmental activities, the business-type activities, each major
fund and the aggregate remaining fund information of City of Crystal, Minnesota, as of and for the year
ended December 31, 2018, and the related notes to financial statements, and have issued our report
thereon dated June 25, 2019.
The Minnesota Legal Compliance Audit Guide for Cities, promulgated by the State Auditor pursuant to
Minn. Sat. § 6.65, contains seven categories of compliance to be tested: contracting and bidding,
deposits and investments, conflicts of interest, public indebtedness, claims and disbursements,
miscellaneous provisions, and tax increment financing. Our audit considered all of the listed categories.
In connection with our audit, nothing came to our attention that caused us to believe that the City of
Crystal, Minnesota failed to comply with the provisions of the Minnesota Legal Compliance Audit
Guide for Cities. However, our audit was not directed primarily toward obtaining knowledge of such
noncompliance. Accordingly, had we performed the additional procedures, other matters may have
come to our attention regarding the City's noncompliance with the above referenced provisions.
This report is intended solely for the information and use of those charged with governance and
management of the City and the State Auditor and is not intended to be, and should not be, used by
anyone other than these specified parties.
Minneapolis, Minnesota
June 25, 2019
7.2
City of Crystal
Matt Mayer, CPA
Audit Presentation
July 16, 2019
7.2
Independent Auditor’s Report
●Management is responsible for the financial statements
●Auditor is responsible to express an opinion on the financial statements
●Unmodified Opinion –best opinion an auditor is able to offer
●Provides assurance that the financial statements are fairly presented in all material
respects
2
7.2
Independent Auditor’s Report
●Minnesota Legal Compliance Audit
No findings
●Internal Control Findings
Lack of Segregation of Accounting Duties
3
7.2
General Fund
4
General Fund Budget Actual Variance Percentage
Revenue
Taxes and assessments 9,603,779$ 9,538,650$ (65,129)$ -0.7%
Intergovernmental 1,868,789 1,860,929 (7,860) -0.4%
Licenses, permits, fines, and charges for services 1,978,979 1,792,534 (186,445) -9.4%
Other 141,080 162,889 21,809 15.5%
Total revenues 13,592,627 13,355,002 (237,625) -1.7%
Expenditures
General government 2,479,741 2,464,910 (14,831) -0.6%
Public safety 6,989,682 6,971,706 (17,976) -0.3%
Public works 1,371,333 1,391,736 20,403 1.5%
Parks and recreation 2,625,129 2,457,539 (167,590) -6.4%
Community development 571,191 565,170 (6,021) -1.1%
Total expenditures 14,037,076 13,851,061 (186,015) -1.3%
Excess of revenues over
(under) expenditures (444,449) (496,059) (51,610) 11.6%
Net other financing sources (uses) 444,449 584,049 139,600 31.4%
Change in fund balance - 87,990 87,990 N/A
Beginning fund balance 6,892,456 6,892,456 - 0.0%
Ending fund balance 6,892,456$ 6,980,446$ 87,990$ 1.3%
7.2
General Fund
5
7.2
General Fund
6
7.2
General Fund Revenues
7
7.2
General Fund Expenditures -2018
8
General
Government
18%
Public Safety
50%
Public Works
10%
Parks and
Recreation
18%
Community
Development
4%
7.2
General Fund Expenditures -2017
(Continued)
9
General
Government
20%
Public Safety
49%
Public Works
9%
Parks and
Recreation
18%
Community
Development
4%
7.2
General Fund Expenditures
10
7.2
Water Enterprise Fund Operations
11
7.2
Sanitary Sewer Enterprise
Fund Operations
12
7.2
Storm Drainage Enterprise
Fund Operations
13
7.2
Street Lights Enterprise
Fund Operations
14
7.2
Per Capita Trends
15
2017** 2018***
Intergovernmental revenues per capita 149$ 137$ 159$
Property taxes per capita ****475 452 478
Total revenue per capita 968 910 932
Expenditures per capita
(less debt service and capital)665 628 658
Total expenditures per capita 1,082 1,168 894
Population 22,855 22,929
* Statewide data obtained from the office of the State Auditor's 2017 Minnesota City Finances Report
** 2017 per capita data uses 2016 population forecast from Metropolitan Council
*** 2018 per capital data uses 2017 population forecast from the Metropolitan Council
**** Property taxes exclude tax increments
Population
City of Crystal
Between
2017 Statewide *
Average-Cities
20,000 and 100,001
7.2
Tax Capacity, Certified Levy, and
City Tax Rate
16
7.2
17
17
Questions?
Matthew Mayer
952-563-6873
Matt.Mayer@berganKDV.com
7.2
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18
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