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2020.06.16 Council Meeting Packet 4141 Douglas Drive North • Crystal, Minnesota 55422-1696 Tel: (763) 531-1000 • Fax: (763) 531-1188 • www.crystalmn.gov Posted: June 12, 2020 City Council Meeting Schedule Tuesday, June 16, 2020 Time Type of meeting Location 7:00 p.m. City Council Meeting Council Chambers/Zoom meeting Immediately following City Council meeting Economic Development Authority (EDA) Work Session Council Chambers/Zoom meeting Immediately following EDA work session City Council Work Session to discuss: - Public safety update. Council Chambers/Zoom meeting 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. In accordance with the requirements of Minnesota Statutes, Section 13D.021, Mayor Jim Adams of Crystal has determined that, due to the outbreak of COVID-19 (otherwise known as “Coronavirus”) it is not practical or prudent to hold an in-person meeting. Some members of the City Council may be participating via telephone or other electronic means. Members of the public may monitor the meeting by a scheduled Zoom meeting. Topic: 06/16/20 | Crystal Council, EDA & WS Time: Jun 16, 2020 06:55 PM Central Time (US and Canada) Join Zoom Meeting https://us02web.zoom.us/j/85307394359?pwd=WVYrRUdQS1lLZm9NTktybWZPcWFXQT09 Meeting ID: 853 0739 4359 Password: 414141 One tap mobile +13126266799,,85307394359# US (Chicago) +19292056099,,85307394359# US (New York) Dial by your location +1 312 626 6799 US (Chicago) +1 929 205 6099 US (New York) +1 301 715 8592 US (Germantown) +1 346 248 7799 US (Houston) +1 669 900 6833 US (San Jose) +1 253 215 8782 US (Tacoma) 888 475 4499 US Toll-free 877 853 5257 US Toll-free Meeting ID: 853 0739 4359 Find your local number: https://us02web.zoom.us/u/kmafcX2BK Page 1 of 2 4141 Douglas Drive North • Crystal, Minnesota 55422-1696 Tel: (763) 531-1000 • Fax: (763) 531-1188 • www.crystalmn.gov City Council Meeting Agenda Tuesday, June 16, 2020 7 p.m. Council Chambers/Zoom Meeting 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. Consent Agenda The Council will consider the following items, which are routine and non-controversial in nature, in a single motion: 3.1. Approval of the minutes from the following meetings: a. The City Council work session on June 2, 2020. b. The City Council meeting on June 2, 2020. 3.2. 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. 3.3. Approval of a resolution accepting a donation of $1,000 from Crystal Lions Club for the K-9 Unit. 3.4. Approval of a resolution establishing an Absentee Ballot Board for the 2020 elections. 3.5. Approval of a resolution designating 2020 polling places. * Staff recently learned several pre-arranged polling places are no longer available and fewer elections judges are available for the 2020 elections. Staff is working on combining and relocating polling places to accommodate these changes by the July 1 deadline. More information will be available at the meeting. 3.6. Approval of a resolution appointing election judges for the 2020 elections. 3.7. Approval of temporary expansion of the licensed premises for outdoor seating at VFW Post 494, 5222 56th Ave. N (staff granted provisional approval so the business could open 6/3/20, consistent with the Governor’s order). 4. 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 Crystal City Council Meeting Agenda June 16, 2020 Page 2 of 2 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.) 5. Regular Agenda 5.1. 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. 5.2. The Council will receive a presentation of the 2019 annual financial report and audit. Finance Director Jean McGann and Matt Mayer of BerganKDV will present the 2019 annual financial report and audit and will be available to answer questions. After the presentation, the Council should formally accept the report by motion. 5.3. The Council will consider a resolution approving the site plan for an addition to Midwest Watersports at 5160 West Broadway. The owner of the facility and property at 5160 West Broadway is proposing an addition to the rear of the existing commercial building. The addition will be used to store boats and products for sale, secondary to the office showroom for water sports equipment in the existing building. At its June 8 meeting, the Planning Commission held the public hearing and unanimously recommend approval of the site plan, subject to conditions outlined in the staff report. 5.4 The Council will consider approval of a first reading of an ordinance amending the Unified Development Code. Staff is proposing miscellaneous clarifications and corrections to the unified development code (UDC) and two policy questions: reducing the minimum lot size for two-family dwellings; and eliminating the per unit requirements from the minimum lot size requirements. At its June 8 meeting, the Planning Commission held a public hearing on the proposed changes and recommended 5 – 3 (1 commissioner was absent) approval of the ordinance making these changes. 6. Announcements a. The next City Council meeting is Tuesday, July 21, at 7 p.m. in the Council Chambers at City Hall. b. 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. 7. Adjournment * Denotes no supporting information included in the packet. Have a great weekend; stay healthy. See you at Tuesday’s meeting. Crystal City Council work session minutes June 2, 2020 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 6:22 p.m. on June 2, 2020 electronically via Zoom and in the Council Chambers at City Hall, 4141 Douglas Dr. N., Crystal, Minnesota. Mayor Adams called the meeting to order. I.Attendance The city manager recorded the attendance for City Council members and staff: Council members present via Zoom: Adams, Banks, Budziszewski, Deshler, Kiser, LaRoche and Parsons. City staff present in the Council Chambers: City Manager A. Norris and Assistant City Manager K. Therres. Also present in the Council Chambers: Labor Relations Attorneys F. Madden and C. Bengstrom. City staff present via Zoom: City Attorney T. Gilchrist and Public Works Director M. Ray (present for item #2). II.Agenda The Council and staff discussed the following items: 1.Labor negotiations. Moved by Council Member Kiser and seconded by Council Member LaRoche to close the meeting pursuant to Minnesota Statutes, Section 13D.03, to discuss labor negotiations strategy. By roll call and voting aye: Adams, Banks, Budziszewski, Deshler, Kiser, LaRoche and Parsons. Motion carried. Moved by Council Member Banks and seconded by Council Member LaRoche to re-open the meeting. By roll call and voting aye: Banks, Budziszewski, Deshler, Kiser, LaRoche, Parsons and Adams. Motion carried. 2.MAC easement exchange update. III.Adjournment The work session adjourned at 6:51 p.m. ________________________________ Jim Adams, Mayor ATTEST: Anne Norris, City Manager 3.1(a) Crystal City Council meeting minutes June 2, 2020 Page 1 of 3 1.Call to Order Pursuant to due call and notice thereof, the regular meeting of the Crystal City Council was held on June 2, 2020 at 7:00 p.m. electronically via Zoom and 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 city clerk to call the roll for elected officials. Upon roll call, the following attendance was recorded: Council members present via Zoom: Deshler, Kiser, LaRoche, Parsons, Adams, Banks and Budziszewski. City staff present in the Council Chambers at City Hall: City Manager A. Norris, Assistant City Manager K. Therres and City Clerk C. Serres. City staff present via Zoom: Public Works Director M. Ray, Police Chief S. Revering, Community Development Director J. Sutter, West Metro Fire-Rescue District Chief S. Larson and City Attorney T. Gilchrist. Pledge of Allegiance Mayor Adams led the Council and audience in the Pledge of Allegiance. Mayor Adams read a statement and council members commented on the death of George Floyd and the civil unrest. 2.Approval of Agenda The Council considered approval of the agenda. Moved by Council Member Banks and seconded by Council Member Budziszewski to approve the agenda. By roll call and voting aye: Budziszewski, Deshler, Kiser, LaRoche, Parsons, Adams and Banks. Motion carried. 3.Consent Agenda The Council considered the following items, which are routine and non-controversial in nature, in a single motion: 3.1 Approval of the minutes from the following meetings: a.The City Council work session on May 14, 2020. b.The City Council meeting on May 19, 2020. c.The City Council work sessions on May 19, 2020. 3.2 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. 3.3 Approval of Resolution No. 2020-58, accepting a donation of $500 from American Legion Post 630 for the Airport Open House. 3.1(b) Crystal City Council meeting minutes June 2, 2020 Page 2 of 3 3.4 Approval of Resolution No. 2020-59, reporting on performance measures. 3.5 Approval of temporary expansion of the licensed premises for outdoor seating at the following liquor license locations: a. Rostamo's, 6014 Lakeland Ave. N. b. El Loro Mexican Restaurant, 99 Willow Bend c. Big Louie’s Bar and Grill, 5216 West Broadway d. Steve O’s, 4900 West Broadway e. Milton’s Cafe, 3545 Douglas Dr. N. Moved by Council Member LaRoche and seconded by Council Member Deshler to approve the consent agenda. By roll call and voting aye: Deshler, Kiser, LaRoche, Parsons, Adams, Banks and Budziszewski. Motion carried. 4. Open Forum The following persons addressed the Council via Zoom: • Ryan Adams, 4126 Brunswick Ave. N., regarding police matters. • Jeremy Bratcher, 5000 West Broadway, regarding a community event. 5. Regular Agenda 5.1 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 Deshler and seconded by Council Member Kiser to approve the list of disbursements over $25,000. By roll call and voting aye: Kiser, LaRoche, Adams, Banks, Budziszewski, Deshler and Parsons. Motion carried. 5.2 The Council considered a resolution authorizing the contract for the West Broadway storm water infiltration project. Public Work Director Mark Ray addressed the Council. Moved by Council Member Budziszewski and seconded by Council Member Parsons to adopt the following resolution: RESOLUTION NO. 2020 – 60 AUTHORIZING THE CONTRACT FOR THE 5747 W. BROADWAY STORM WATER INFILTRATION SYSTEM By roll call and voting aye: LaRoche, Parsons, Adams, Budziszewski, Banks, Deshler and Kiser. Motion carried, resolution declared adopted. 3.1(b) Crystal City Council meeting minutes June 2, 2020 Page 3 of 3 5.3 The Council considered a resolution authorizing a contract for relocating the water meter reading antenna from the police building. Public Work Director Mark Ray addressed the Council. Moved by Council Member LaRoche and seconded by Council Member Banks to adopt the following resolution: RESOLUTION NO. 2020 – 61 AUTHORIZING THE CONTRACT FOR THE RELOCATION OF THE WATER METER ANTENNA By roll call and voting aye: Parsons, Adams, Banks, Budziszewski, Deshler, Kiser and LaRoche. Motion carried, resolution declared adopted 6. Announcements The Council made announcements about upcoming events. 7. Adjournment Moved by Council Member Budziszewski and seconded by Council Member Kiser to adjourn the meeting. By roll call and voting aye: Adams, Banks, Budziszewski, Deshler, Kiser, LaRoche and Parsons. Motion carried. The meeting adjourned at 7:46 p.m. _____________________________________ Jim Adams, Mayor ATTEST: __________________________________ Christina Serres, City Clerk 3.1(b) Page 1 of 2 City of Crystal Council Meeting June 16, 2020 Applications for City License Rental – New 5415 Angeline Ave. N. – Anna Novak (Conditional) 3917 Hampshire Ave. N. – Jonathan Berndt (Conditional) 3400 Noble Ave. N. – J & C Ellefson Trust (Conditional) Rental – Renewal 3313 Brunswick Ave. N. – Jon Miller (Conditional) 4051 Brunswick Ave. N. – Serenity Village Community Church (Conditional) 4547 Colorado Ave. N. – Maria Basurto (Conditional) 5116 Edgewood Ave. N. – Mitchell Investments LLC (Conditional) 5141 Edgewood Ave. N. – Dennis J O’Keefe 2826 Idaho Ave. N. – Jeff Reiser 4032 Idaho Ave. N. – Gerhard Hettler and Carol Weston 5331 Jersey Ave. N. – Jaspermax LLC (Conditional) 6910 Jersey Cir. N. – Justin Peterson (Conditional) 6804 Lombardy La – Raymond and Cindy Scherbing 5625 Maryland Ave. N. – Douglas and Charlayne Heinzmann 8332 Northern Dr. – Vincent Martin 5704 Orchard Ave. N. – Sobocinski M&T LLC 3401 Regent Ave. N. – Matthew Meyer 5540 Regent Ave. N. – Jackeline Gaines (Conditional) 5229 Unity Ct. N. – RTO Investments LLC 2721 Vera Cruz Ave. N. – An Nguyen (Conditional) 5232 Welcome Ave. N. – Crystal Clear Investments 3815 Xenia Ave. N. – Distinguished Properties (Conditional) 4730 Xenia Ave. N. – Ryan McArton 5540 Xenia Ave. N. – Harold Creek 4227 Zane Ave. N. – MNSF (Conditional) 4242 Zane Ave. N. – Herman Capital Partners 3 (Conditional) 4639 Zane Ave. N. – Todd long (Conditional) 7224 33rd Ave. N. – Mark Berthelsen 6307 34th Ave. N. – Wally Anderson (Conditional) 7017 36th Ave. N. – 36th Avenue Ventures LLC 7025 36th Ave. N. – 36th Avenue Ventures LLC 5916 38th Ave. N. – Jason Herzog (Conditional) 5917 38th Ave. N. – Jason Herzog (Conditional) 6620 44th Ave. N. – Robert and Jenny Donovan 6820-6824 44th Ave. N. – Steve Hinrichs 5109 48th Ave. N. – James Properties LLC (Conditional) 6515 52nd Ave. N. – Raymond Martin and Lisa Martin 5328 53rd Ave. N. – Galen and Teresa Watje 6604 57th Ave. N. – David Pascoe (Conditional) 6901 58th Ave. N. – VW Properties LLC 3.2 Page 2 of 2 Solicitor American Dream Home Improvement Inc. – Mark Vargus 8053 Bloomington Frwy Ste 200 Bloomington, MN 55420 American Dream Home Improvement Inc. – Michael Brewer 8053 Bloomington Frwy Ste 200 Bloomington, MN 55420 American Dream Home Improvement Inc. – William Paredes 8053 Bloomington Frwy Ste 200 Bloomington, MN 55420 Curbside Waste Inc. - Colton O’Connell 4025 85th Ave N Brooklyn Park, MN 55443 3.2 CITY OF CRYSTAL RESOLUTION NO. 2020 – RESOLUTION ACCEPTING A DONATION FROM CRYSTAL LIONS CLUB 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 donation: Donor Purpose Amount Crystal Lions Club K-9 Unit $1,000 AND, BE IT FURTHER RESOLVED that the Crystal City Council sincerely thanks the above- named for its generous donation. Dated: June 16, 2020 By: __________________________ Jim Adams, Mayor ATTEST: ______________________________ Christina Serres, City Clerk 3.3 COUNCIL STAFF REPORT Consent Agenda: June 16, 2020 Council Meeting Establishing an Absentee Ballot Board for the 2020 elections FROM: City Clerk Chrissy Serres DATE: June 10, 2020 TO: Mayor and City Council CC: City Manager Anne Norris RE: Establishing an Absentee Ballot Board for the 2020 elections Background As required by Minnesota election law, the governing body of each municipality with responsibility to accept and reject absentee ballots must establish an Absentee Ballot Board (ABB). The law also allows for staff trained as deputy clerks in handling absentee ballots to be members of the ABB. Exhibit A of the attached resolution lists staff requested to be appointed to the City of Crystal’s ABB for the 2020 elections. Hennepin County also appoints individuals to its ABB who are responsible for processing absentee ballots received at the Hennepin County Government Center and serve on behalf of the City of Crystal’s ABB. Council action requested Approval of the resolution establishing an Absentee Ballot Board for the 2020 elections. 3.4 RESOLUTION NO. 2020 – ESTABLISHING AN ABSENTEE BALLOT BOARD FOR THE 2020 PRIMARY AND GENERAL ELECTIONS WHEREAS, the City of Crystal is required by Minnesota Statutes, Section 203B.121, Subd. 1 to establish an absentee ballot board to process, accept and reject absentee ballots; and WHEREAS, Minnesota Statutes, Section 203B.121, Subd. 1 allows for deputy clerks trained in the processing of absentee ballots to serve on the board. NOW, THEREFORE, BE IT RESOLVED by the Crystal City Council that the individuals named in Exhibit A and on file in the city clerk’s office be appointed to the City of Crystal’s Absentee Ballot Board for the 2020 elections. BE IT FURTHER RESOLVED that the Crystal City Council also appoints other individuals and all members appointed to the Hennepin County Absentee Ballot Board as authorized under Minnesota Statutes, Section 204B.21, Subd. 2 under the direction of the Election Manager to serve as members of the City of Crystal Absentee Ballot Board; and BE IT FURTHER RESOLVED that the city clerk is, with this, authorized to make any substitutions or additions as deemed necessary. Dated this 16th day of June, 2020. By: Jim Adams, Mayor ATTEST: Christina Serres, City Clerk 3.4 EXHIBIT A Absentee Ballot Board Appointments Chrissy Serres Katrina Jones Gail Petschl Tracy Thorstenson Terri Fleck Kalli Olek Chee Yang 3.4 COUNCIL STAFF REPORT Consent Agenda: June 16, 2020 Council Meeting Appointing election judges for the 2020 primary and general elections FROM: City Clerk Chrissy Serres DATE: June 10, 2020 TO: Mayor and City Council CC: City Manager Anne Norris RE: Election judge appointments for the 2020 primary and general elections Background As required by Minnesota election law, the governing body of the municipality shall appoint election judges at least 25 days before the election. The primary election will be held Tuesday, August 11, 2020 and the general election will be held Tuesday, November 3, 2020. Election judges are assigned to precincts based on availability, party balance and the number required for each location to adequately serve voters. Exhibit A of the attached resolution lists individuals who have indicated a willingness and availability to serve as election judges for the 2020 elections. Requested Council action Approval of the resolution appointing election judges for the 2020 primary and general elections. 3.6 RESOLUTION NO. 2020 - RESOLUTION APPOINTING ELECTION JUDGES FOR THE 2020 PRIMARY AND GENERAL ELECTIONS WHEREAS, the primary election will be held on August 11, 2020 and the general election will be held on November 3, 2020; and WHEREAS, as authorized by Minnesota Statutes, Section 204B.21, Subd. 2, election judges shall be appointed by the governing body of the municipality no later than 25 days before each election. NOW, THEREFORE, BE IT RESOLVED by the Crystal City Council that the individuals named in Exhibit A and on file in the city clerk’s office be appointed as City of Crystal election judges for the 2020 primary and general elections. BE IT FURTHER RESOLVED that the city clerk is, with this, authorized to make any substitutions or additions as deemed necessary. Dated this 16th day of June, 2020. By:__________________________ Jim Adams, Mayor ATTEST: ________________________________ Christina Serres, City Clerk 3.6 EXHIBIT A Election Judge Appointments Last Name First Name Last Name First Name Allen Eleanore Bauer Donald Baumel Philip Bishop Theresa Boettcher Susan Bradbury Phillip Butler Jody Countryman Alice Diawara Moussa Fauchier Mary Feyen Gary Fleury Linda Frantz Wilma Franz Nancy Galajda Michal Goldsmith Joanne Graham Matthew Harty Lori Herlofsky Charles Hoffmann Mark Jaimes Diana Johnson Joyce Kamp Marilyn Keeffe Anne Kornmann Lynette Kubly Janet Larson Lynn Lee Terrence Manthey Patricia Mathisen Thomas Munson Jeff Nafranowicz Lida Ottinger Henry Ottinger Karen Pickerign LaVine Pramann Kelly Prokofieff Karen Rhode Lavern Rocha Ruben Schulte Paul Shakerin Lisa Sonsalla Ronald Soukup Mary St. Germain Thomas Stockhaus Stuart Stone Pat Sullivan Doreen Taylor Cherie Thorpe Whitney Tienter Lisa Toavs Constance Ullmer Jeanne Ulrich Wendy Vorderbruggen Robert Wagner Catherine Webster Pegeen Weston Carol Yaeger Christine 3.6 _____________________________________________________________________ FROM: Anne Norris, City Manager _____________________________________________________________________ DATE: June 11, 2020 TO: Mayor and Council (for June 16 Council meeting) SUBJECT: Consider approving temporary expansion of the licensed premises for outdoor seating at VFW Post #494 at 5222 56th Ave. N. On May 20, Governor Walz announced that bars and restaurants would be allowed to open on June 1 but only for outdoor seating and subject to social distancing and other requirements. City staff began contacting Crystal bars and restaurants before May 20 in anticipation of requests for new or expanded outdoor seating areas this summer. To help businesses open quickly, I suspended enforcement of the normal requirement for a Zoning Certificate and $100 fee, and also the requirement for permanent fencing, because these are temporary uses for the 2020 outdoor dining season in response to the COVID-19 pandemic. Suspension of other zoning requirements turned out to be unnecessary due to the changes we have made to the City Code in recent years. For establishments that serve alcohol, the state requires that outdoor seating areas be compact and contiguous with the building. VFW Post #494 at 5222 56th Ave. N. has requested expansion of their licensed premises to include the outdoor area shown on the attached aerial photo. Such an expansion of the licensed premises requires city approval. In accordance with the City Code, I have granted provisional approval of this request. I recommend that the City Council approve the expansion of the licensed premises for the period June 1, 2020 - November 1, 2020. COUNCIL STAFF REPORT Expand Licensed Premises for Outdoor Seating due to COVID-19 3.7 Page 2 of 2 VFW Post #494 - 5222 56th Ave. N.▲ NORTH 3.7 DATE:June 10, 2020 TO:Anne Norris, City Manager City of Crystal City Council FROM:Jean McGann, Contracted Finance Director RE:Expenditures over $25,000 Payee Amount Golden Valley JWC April water costs $147,776.34 Metropolitan Council Environ Svs Wastewater service for June $117,128.10 Wold Architects and Engineers New public safety building project costs $32,103.12 HealthPartners, Inc.June health insurance premiums $118,554.00 MN PERA Employee and city required contributions for 5/29/20 pay date $57,483.95 $473,045.51 Description 5.1 City of Crystal Hennepin County, Minnesota Communications Letter December 31, 2019 5.2(a) City of Crystal Table of Contents Report on Matters Identified as a Result of the Audit of the Financial Statements 1 Material Weakness 3 Significant Deficiency 4 Required Communication 5 Financial Analysis 8 Emerging Issue 19 5.2(a) 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, 2019, 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. 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. The material weakness identified is stated within this letter. 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. 5.2(a) 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, 2019. 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 10, 2020, 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 10, 2020 5.2(a) 3 City of Crystal Material Weakness Prior Period Adjustment For the year ended December 31, 2019, a prior period adjustment was required to adjust beginning net position for governmental activities to reflect changes in land held for resale of the EDA Special Revenue Fund related to property sold in 2018. This adjustment affected beginning net position for governmental activities in the amount of $295,000. 5.2(a) 4 City of Crystal Significant Deficiency 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. 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, 2019. Professional standards require that we advise you of the following matters related to our audit. 5.2(a) City of Crystal Required Communication 5 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, 2019. 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. Our responsibility, as prescribed by professional standards, is to plan and perform our audit to obtain reasonable, rather than absolute, assurance about whether the financial statements are free of material misstatement. An audit of financial statements includes consideration of internal control over financial reporting as a basis for designing 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 over financial reporting. Accordingly, as part of our audit, we considered the internal control of the City solely for the purpose of determining our audit procedures and not to provide any assurance concerning such internal control. We are also responsible for communicating significant matters related to the audit that are, in our professional judgement, relevant to your responsibilities in overseeing the financial reporting process. However, we are not required to design procedures for the purpose of identifying other matters to communicate to you. 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 supplements 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 as a whole. Planned Scope and Timing of the Audit We conducted our audit consistent with the planned scope and timing we previously communicated to you. 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. 5.2(a) City of Crystal Required Communication 6 Qualitative Aspects of Significant Accounting Practices Significant Accounting Policies 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 2019. No matters have come to our attention that would require us, under professional standards, to inform you about (1) the methods used to account for significant unusual transactions and (2) the effect of significant accounting policies in controversial or emerging areas for which there is a lack of authoritative guidance or consensus. Significant Accounting Estimates Accounting estimates are an integral part of the financial statements prepared by management and are based on management's current judgements. Those judgements are normally based on 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 markedly from management's current judgements. The most sensitive estimate/s affecting the financial statements was/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 Allocation – Certain expenses are allocated to programs based on an estimate of the benefit to that particular program. Examples are salaries, benefits, and supplies. Total Other Post Employment Benefits (OPEB) Liability, Deferred Outflows of Resources Related to OPEB and Deferred Inflows 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 an allocation by the pension plans using estimates based on contributions. We evaluated the key factors and assumptions used to develop the accounting estimates and determined that they are reasonable in relation to the financial statements taken as a whole. Financial Statement Disclosures Certain financial statement disclosures involve significant judgment and are particularly sensitive because of their significance to financial statement users. The financial statement 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. 5.2(a) City of Crystal Required Communication 7 Uncorrected and Corrected Misstatements For the purposes of this communication, professional standards require us to accumulate all known and likely misstatements identified during the audit, other than those that we believe are trivial, and communicate them to the appropriate level of management. Further, professional standards require us to also communicate the effects 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 has corrected all such misstatements. 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 our audit. Representations Requested from Management We have 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 auditor. Other Information in Documents Containing Audited Financial Statements 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. 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 the 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. 5.2(a) 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, 2019, the General Fund balance was $6,996,436, an increase of 0.2%, or $15,990, from the 2018 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. $6,382,810 $6,220,496 $6,119,325 $6,181,591 $6,123,392 $782,627 $817,760 $753,962 $774,914 $801,503 $27,488 $15,519 $19,169 $23,941 $71,541 $- $1,000,000 $2,000,000 $3,000,000 $4,000,000 $5,000,000 $6,000,000 $7,000,000 $8,000,000 2015 2016 2017 2018 2019 Unassigned Committed for Compensated Absences Nonspendable 5.2(a) City of Crystal Financial Analysis 9 GENERAL FUND (CONTINUED) The City adopted a budget for 2020 which called for an increase in expenditures and other financing uses of 3.8%, or $537,581. Fund balance at December 31, 2019, 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. 50% 47%44%43%41% 57% 53% 49%49%47% 0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 50% 55% 60% 65% 70% 2015 2016 2017 2018 2019 Unassigned Fund Balance Total Fund Balance 5.2(a) City of Crystal Financial Analysis 10 GENERAL FUND (CONTINUED) For the 2019 operating year, the City Council approved a balanced budget anticipating no change in fund balance. Revenues were under budget by 0.3% and expenditures were 0.2% under budget. This resulted in a positive variance of $15,990 from budgeted expectations. General Fund Budget Actual Variance Percentage Revenue Taxes and assessments 9,786,749$ 9,743,618$ (43,131)$ -0.4% Intergovernmental 1,912,339 1,907,763 (4,576) -0.2% Licenses, permits, fines, and charges for services 1,947,147 1,932,018 (15,129) -0.8% Other 137,350 152,167 14,817 10.8% Total revenues 13,783,585 13,735,566 (48,019) -0.3% Expenditures General government 2,055,504 2,234,884 179,380 8.7% Public safety 7,363,675 7,335,302 (28,373) -0.4% Public works 1,421,710 1,411,680 (10,030) -0.7% Parks and recreation 2,754,087 2,668,952 (85,135) -3.1% Community development 647,469 557,867 (89,602) -13.8% Total expenditures 14,242,445 14,208,685 (33,760) -0.2% Excess of revenues (under) expenditures (458,860) (473,119) (14,259) 3.1% Net other financing sources (uses) 458,860 489,109 30,249 6.6% Change in fund balance - 15,990 15,990 N/A Beginning fund balance 6,980,446 6,980,446 - 0.0% Ending fund balance 6,980,446$ 6,996,436$ 15,990$ 0.2% All revenue categories had actual results that were closely in line with the budget. The largest budget variance for revenue was in taxes and assessments, which was $43,131 under the budgeted amount. General government expenditures were $179,830 over budget in 2019. This budget variance was due in part to actual wages coming in over budgeted amounts, with charges being based on actual allocations and work performed. All other categories came in under budgeted expenditures. Community development came in under budget by $89,602 while parks and recreation expenditures were under budget by $85,135. 5.2(a) 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 $13,735,566 in 2019 increased from $13,355,002 in 2018. The largest increase of $190,460 occurred in property taxes due in large part to an increase in the amount of property tax levied for the year. Licenses and permits increased by $95,520 with an increase in building permit fees and affiliated building activity. 2015 2016 2017 2018 2019 Other $501,360 $552,865 $466,858 $435,116 $493,544 Charges for Services 672,594 791,838 758,968 818,999 808,321 Licenses and Permits 808,695 773,479 785,451 740,192 835,712 Intergovernmental 1,991,430 2,008,525 2,003,243 1,860,929 1,907,763 Property Taxes 8,262,652 8,004,390 8,709,285 9,499,766 9,690,226 $- $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 5.2(a) 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 2018 and 2019. General Government 16% Public Safety 51% Public Works 10% Parks and Recreation 19% Community Development 4% 2019 General Fund Expenditures General Government 18% Public Safety 50% Public Works 10% Parks and Recreation 18% Community Development 4% 2018 General Fund Expenditures 5.2(a) City of Crystal Financial Analysis 13 GENERAL FUND EXPENDITURES (CONTINUED) General Fund expenditures increased $357,624, or 2.6%, from the prior year. Public safety expenditures increased $363,596 due to increases in salaries, benefits, and prior year vacancies in the police department that were filled in 2019. Parks and recreation expenditures increased $211,413 in 2019 due in large part to higher wages with cost of living adjustments along with other pay increases allocated in the parks department. General Government decreased $230,026 with most of the variance due to the City having allocated more expenditures to the City Buildings Fund in 2019. 2015 2016 2017 2018 2019 Community Development $736,813 $523,035 $543,950 $565,170 $557,867 Parks and Recreation 2,221,638 2,233,897 2,372,112 2,457,539 2,668,952 Public Works 1,251,095 1,276,590 1,285,172 1,391,736 1,411,680 Public Safety 5,744,126 6,069,624 6,504,810 6,971,706 7,335,302 General Government 2,284,547 2,510,387 2,622,202 2,464,910 2,234,884 $- $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 $15,000,000 General Fund Expenditures 5.2(a) City of Crystal Financial Analysis 14 WATER ENTERPRISE FUND Activity for the City's Water Fund is shown below. Water operating revenues increased $189,614 as a result of an increase in commercial and industrial rates in 2019. Operating expenses decreased $9,587 compared to 2018. The Water Fund ended the year with a net income of $620,109, which was an increase in net income from 2018 of $199,201. 2015 2016 2017 2018 2019 Operating revenue $3,222,273 $3,337,980 $3,394,823 $3,518,119 $3,707,733 Operating expense 4,131,931 3,037,110 2,960,628 3,097,211 3,087,624 Net income with depreciation 495,204 1,809,649 717,863 560,131 828,645 Net income without depreciation 679,688 2,030,876 944,238 790,222 973,625 $- $500,000 $1,000,000 $1,500,000 $2,000,000 $2,500,000 $3,000,000 $3,500,000 $4,000,000 $4,500,000 Water Utility 5.2(a) City of Crystal Financial Analysis 15 SANITARY SEWER ENTERPRISE FUND Sewer operating revenues decreased $137,236 due in part to a change in billing to a tiered system based on usage. Operating expenses decreased $321,306 due to reduced charges associated with sewer disposal in 2019. The Sanitary Sewer Fund's operating income ended at $282,014 and increased $184,070 from 2018. 2015 2016 2017 2018 2019 Operating revenue $2,085,601 $2,196,601 $2,301,863 $2,584,087 $2,446,851 Operating expense 1,995,548 2,168,280 2,144,581 2,486,143 2,164,837 Net income with depreciation 137,656 109,365 180,199 135,797 345,434 Net income without depreciation 266,939 273,405 345,187 322,363 450,495 $- $500,000 $1,000,000 $1,500,000 $2,000,000 $2,500,000 $3,000,000 Sanitary Sewer Utility 5.2(a) City of Crystal Financial Analysis 16 STORM DRAINAGE AND STREET LIGHTS ENTERPRISE FUNDS 2015 2016 2017 2018 2019 Operating revenue $809,067 $871,233 $1,059,165 $1,335,334 $1,226,403 Operating expense 883,284 903,342 794,169 759,180 1,539,162 Net income with depreciation (66,804) (414) 399,193 599,616 2,092,174 Net income without depreciation 257,251 356,369 744,178 967,746 2,384,919 $(500,000) $- $500,000 $1,000,000 $1,500,000 $2,000,000 $2,500,000 $3,000,000 Storm Drainage Utility 2015 2016 2017 2018 2019 Operating revenue $186,237 $191,382 $195,122 $195,324 $194,950 Operating expense 151,305 155,056 154,479 152,301 151,732 Net income with depreciation 43,913 47,299 29,178 56,163 65,092 Net income without depreciation 76,130 79,516 61,395 88,380 97,309 $- $50,000 $100,000 $150,000 $200,000 $250,000 Street Lights Utility 5.2(a) City of Crystal Financial Analysis 17 PER CAPITA REVENUES AND EXPENDITURES Below is a chart of the per capita trends in selected revenue and expenditure line items. In 2019, the intergovernmental revenue per capita increased and remained above the State average for similarly sized cities due in part to receiving additional funding for park improvements. The property taxes per capital increased due to an increase in property tax levy. Total expenditures per capita increased in 2019 due to an increase in capital outlay expenditures when compared to 2018 activity. As an offset for the increased capital activity in 2019, current expenditures per capita saw a decrease. 2018** 2019*** Intergovernmental revenues per capita 157$ 159$ 170$ Property taxes per capita ****493 478 486 Total revenue per capita 1,008 932 931 Expenditures per capita (less debt service and capital)686 658 653 Total expenditures per capita 1,132 894 957 Population 22,929 23,287 * Statewide data obtained from the office of the State Auditor's 2018 Minnesota City Finances Report ** 2018 per capita data uses 2017 population forecast from Metropolitan Council *** 2019 per capital data uses 2018 population forecast from the Metropolitan Council **** Property taxes exclude tax increments Population Per Capita Trends City of Crystal Between 2018 Statewide * Average-Cities 20,000 and 100,000 5.2(a) 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 2015 through 2019. 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 2018 to 2019, by $1,507,706, or 8.2%. 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 47.6%. $14,758,503 $15,250,280 $16,470,361 $18,459,975 $19,967,681 $8,865,262 $9,135,123 $9,798,620 $10,627,889 $11,060,388 49.1% 51.8% 49.0%49.2% 47.6% -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 2015 2016 2017 2018 2019 Tax Capacity, Certified Levy, and City Tax Rate * Tax capacity and city tax rate obtained from Hennepin County taxing district information 5.2(a) City of Crystal Emerging Issue 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 update includes:  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 is an extensive summary of the current update. 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. 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. 5.2(a) City of Crystal Emerging Issue 20 ACCOUNTING STANDARD UPDATE – GASB STATEMENT NO. 87 – LEASES (CONTINUED) 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. 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 June 15, 2021 Information provided above was obtained from www.gasb.org. 5.2(a) COMPREHENSIVE ANNUAL FINANCIAL REPORT OF THE CITY OF CRYSTAL, MINNESOTA For the Year Ended December 31, 2019 Prepared by City of Crystal Finance Department AEM Financial Solutions, Finance Director 5.2(b) 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 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 Statement of Changes in Fiduciary Net Position 50 Notes to Financial Statements 51 Required Supplementary Information Schedule of Changes in Total OPEB Liability and Related Ratios 92 Schedule of Employer Contributions – OPEB 93 Schedule of City's Proportionate Share of Net Pension Liability – General Employees Retirement Fund 94 Schedule of City's Proportionate Share of Net Pension Liability – Public Employees Police and Fire Retirement Fund 94 Schedule of City Contributions – General Employees Retirement Fund 95 Schedule of City Contributions – Public Employees Police and Fire Retirement Fund 95 Notes to Required Supplementary Information 97 5.2(b) City of Crystal Table of Contents Page Supplementary Information Nonmajor Governmental Funds 103 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 109 Schedule of Revenues, Expenditures, and Changes in Fund Balance – Budget and Actual – Street Reconstruction - Capital Projects 110 Schedule of Revenues, Expenditures, and Changes in Fund Balance – Budget and Actual – Police Equipment Revolving - Capital Projects 111 Statistical Section (Unaudited) Table Page Net Position by Component 1 116 Change in Net Position 2 118 Fund Balances of Governmental Funds 3 122 Changes in Fund Balances of Governmental Funds 4 124 Taxable and Estimated Market Values of Taxable Property 5 126 Property Tax Rates – Direct and Overlapping Governments 6 127 Principal Property Taxpayers 7 128 Property Tax Levies and Collations 8 129 Legal Debt Margin Information 9 130 Ratios of Outstanding Debt by Type 10 132 Ratios of General Bonded Debt Outstanding 11 133 Direct and Overlapping Governmental Activities Debt 12 134 Demographic and Economic Statistics 13 135 Principal Employers 14 136 Full-Time City Government Employees by Function 15 137 Operating Indicators by Function 16 138 Capital Asset Statistics by Function 17 140 5.2(b) 5.2(b) 1 City of Crystal Elected Officials and Administration December 31, 2019 Elected Officials Position Term Expires Jim Adams Mayor December 31, 2020 Nancy LaRoche Council Member (Section I - Wards 1 and 2) December 31, 2020 Therese Kiser Council Member (Ward 1)December 31, 2022 Brendan Banks Council Member (Ward 2)December 31, 2022 Olga Parsons Council Member (Section II - Wards 3 and 4) December 31, 2022 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 and Graven, Chartered Appointed City Prosecutor MacMillan, Wallace, and Athanases PLLC Appointed 5.2(b) &LW\RI&U\VWDO 2UJDQL]DWLRQDO&KDUW 'HFHPEHU 5.2(b) 3 I did June 10, 2020 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, 2019, 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, 2019, 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, 2019, 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 5.2(b) 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. 5.2(b) 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 four lots for new home construction in 2019. In addition, private-sector infill development yielded six new houses in 2019. 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. 5.2(b) 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 Building Fund is an Internal Service fund 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 fifteen 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 2019. 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, 2018. 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. 5.2(b) 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 5.2(b) 8 5.2(b) 9 5.2(b) 10 5.2(b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b) 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, 2019, 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 84 As discussed in Note 17 to the financial statements, the City has adopted new accounting guidance, Governmental Accounting Standards Board (GASB) Statement No. 84, Fiduciary Activities. 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. 5.2(b) 2WKHU0DWWHUV&RQWLQXHG Other Information (Continued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b) 14 5.2(b) 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, 2019. 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 $117,316,338. Of this amount, $34,195,568 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 increased by $1,699,061 even with a prior period adjustment of $295,000 to decrease the beginning net position for governmental activities. Governmental activities experienced a $2,511,620 increase in net position from operations while business-type activities experienced a $812,559 decrease in net position from operations. At the end of the fiscal year, total fund balance for the General Fund was $6,996,436, or 49.22% 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 $1,726,709 during the fiscal year. The City's net OPEB obligation decreased by $36,086. 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). 5.2(b) 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 thirteen 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, Park Improvement, Police Equipment Revolving, and Street Reconstruction funds, all of which are considered to be major funds. Data from the other seven 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. 5.2(b) 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. 5.2(b) City of Crystal Management's Discussion and Analysis 18 GOVERNMENT-WIDE FINANCIAL ANALYSIS Net Position The City has 56.30% 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 14.55% of the City's net position represents resources that are subject to external restrictions on how they may be used. The remaining balance of 29.15% 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: 2019 2018 2019 2018 2019 2018 Current and Other Assets 52,010,431$ 55,253,844$ 8,585,181$ 7,705,993$ 60,595,612$ 62,959,837$ Equity interest in joint venture 1,276,450 1,381,904 4,621,447 4,451,407 5,897,897 5,833,311 Capital assets 62,204,131 58,895,706 19,815,262 21,693,069 82,019,393 80,588,775 Total assets 115,491,012 115,531,454 33,021,890 33,850,469 148,512,902 149,381,923 Deferred Outflows of Resources 3,418,110 4,861,964 56,147 123,549 3,474,257 4,985,513 Long-Term Liabilities outstanding 24,909,778 26,580,616 903,213 976,287 25,812,991 27,556,903 Other liabilities 1,683,396 1,634,198 309,258 280,695 1,992,654 1,914,893 Total liabilities 26,593,174 28,214,814 1,212,471 1,256,982 27,805,645 29,471,796 Deferred Inflows of Resources 6,716,239 8,795,515 148,937 187,848 6,865,176 8,983,363 Net Position Net investment in capital assets 46,233,147 41,195,367 19,815,262 21,693,069 66,048,409 62,888,436 Restricted 17,072,361 18,671,275 - - 17,072,361 18,671,275 Unrestricted 22,294,201 23,516,447 11,901,367 10,836,119 34,195,568 34,352,566 Total net position 85,599,709$ 83,383,089$ 31,716,629$ 32,529,188$ 117,316,338$ 115,912,277$ Governmental Activities Business-Type Activities Total Net Position 5.2(b) 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 2019 and 2018 follows: 2019 2018 2019 2018 2019 2018 Revenues Program revenues - Charges for services 2,218,671$ 2,387,093$ 7,918,273$ 7,553,779$ 10,136,944$ 9,940,872$ Operating grants and contributions 761,960 699,638 2,560,212 547,760 3,322,172 1,247,398 Capital grants and contributions 2,146,495 2,337,789 - - 2,146,495 2,337,789 General revenues - Property taxes 11,619,642 11,193,252 11,619,642 11,193,252 Intergovernmental 2,025,682 1,850,588 - - 2,025,682 1,850,588 Grants and contributions not restricted to specific programs - - - - - - Other 1,128,143 774,077 148,899 98,002 1,277,042 872,079 Total revenues 19,900,593 19,242,437 10,627,384 8,199,541 30,527,977 27,441,978 Expenses General government 4,523,764 3,435,708 - - 4,523,764 3,435,708 Public safety 7,585,509 7,250,306 - - 7,585,509 7,250,306 Public works 4,479,566 4,285,522 - - 4,479,566 4,285,522 Parks and recreation 3,093,691 3,299,792 - - 3,093,691 3,299,792 Community development 1,398,666 1,159,700 - - 1,398,666 1,159,700 Interest on long-term debt 462,218 518,975 - - 462,218 518,975 Water - - 3,094,824 3,105,611 3,094,824 3,105,611 Sanitary sewer - - 2,164,837 2,486,143 2,164,837 2,486,143 Storm drainage - - 1,539,162 759,180 1,539,162 759,180 Street lights - - 151,732 152,301 151,732 152,301 Recycling - - 334,947 335,310 334,947 335,310 Total Expenses 21,543,414 19,950,003 7,285,502 6,838,545 28,828,916 26,788,548 Change In Net Position Before transfers (1,642,821) (707,566) 3,341,882 1,360,996 1,699,061 653,430 Transfers 4,154,441 502,049 (4,154,441) (502,049) - - Change In Net Position 2,511,620 (205,517) (812,559) 858,947 1,699,061 653,430 Net Position - beginning of year, restated 83,088,089 83,588,606 32,529,188 31,670,241 115,617,277 115,258,847 Net Position - end of year 85,599,709$ 83,383,089$ 31,716,629$ 32,529,188$ 117,316,338$ 115,912,277$ Governmental Activities Business-Type Activities Total Changes in Net Position 5.2(b) City of Crystal Management's Discussion and Analysis 20 GOVERNMENT-WIDE FINANCIAL ANALYSIS (CONTINUED) Governmental Activities Governmental activities increased the City's governmental-type net position by $2,511,620, or 3.02%, accounting for 147.82% of the total increase in the City's net position. Business-type Activities Business-type activities decreased the City's business-type net position by $812,559, or (2.50)%, offsetting for (47.82)% of the total increase in the City's net position. Key elements of the net increase include:  Rate increases – The City Council approved a rate increase of 16.43% for the sanitary sewer utility, which increased rates charged from $61.22 per quarter for residential properties in 2018 to $71.28 per quarter in 2019. In addition, the sanitary sewer utility increases the rate per 1,000 gallons from commercials users from $2.67 in 2018 to $7.00 in 2019. The City Council approved a rate increase of 5.51% for the storm drainage utility, which increased rates charged from $18.15 per quarter for residential properties in 2018 to $19.15 per quarter in 2019. In addition, the storm drainage utility rate per residential equivalency factor (per acre) for commercial users increase by 5.51%, this increase the quarterly factor from $90.75 in 2018 to $95.75 in 2019. 5.2(b) City of Crystal Management's Discussion and Analysis 21 EXPENSES AND PROGRAM REVENUES Governmental Activities $0 $1,000,000 $2,000,000 $3,000,000 $4,000,000 $5,000,000 $6,000,000 $7,000,000 $8,000,000 General government Public safety Public works Parks and recreation Community development Interest on long- term debt 2019 Expenses and Program Revenues - Governmental Activities Expenses Revenues $0 $1,000,000 $2,000,000 $3,000,000 $4,000,000 $5,000,000 $6,000,000 $7,000,000 $8,000,000 General government Public safety Public works Parks and recreation Community development Interest on long- term debt 2018 Expenses and Program Revenues -Governmental Activities Expenses Revenues 5.2(b) City of Crystal Management's Discussion and Analysis 22 REVENUES BY SOURCE Capital grants and contributions 11% Charges for services 11% Operating grants and contributions 4% Property taxes 59% Intergovernmental 10% Unrestricted investment earnings 5% 2019 Revenues by Source - Governmental Activities Capital grants and contributions 25% Charges for services 10% Operating grants and contributions 6% Property taxes 49% Intergovernmental 8% Unrestricted investment earnings 2% 2018 Revenues by Source - Governmental Activities 5.2(b) City of Crystal Management's Discussion and Analysis 23 EXPENSES AND PROGRAM REVENUES 0 500,000 1,000,000 1,500,000 2,000,000 2,500,000 3,000,000 3,500,000 4,000,000 4,500,000 Water Sanitary Sewer Storm drainage Street lights Recycling 2019 Expenses and Program Revenues -Business Type Activities Expenses Revenues 0 500,000 1,000,000 1,500,000 2,000,000 2,500,000 3,000,000 3,500,000 4,000,000 Water Sanitary Sewer Storm drainage Street lights Recycling 2018 Expenses and Program Revenues -Business Type Activities Expenses Revenues 5.2(b) City of Crystal Management's Discussion and Analysis 24 REVENUES BY SOURCE Charges for services 72% Operating grants and contributions 26% Unrestricted investment earnings 2% 2019 Revenues by Source ‐Business Type Activities Charges for services 73% Operating grants and contributions 26% Unrestricted investment earnings 1% 2018 Revenues by Source - Business Type Activities 5.2(b) 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 $35,726,362, a decrease of $289,479 compared to the prior year. Approximately 17.14% of the total amount ($6,123,392) constitutes unassigned fund balance, which is available for spending at the government's discretion. The remainder of fund balance has been classified as nonspendable ($71,541), restricted ($7,348,751), committed ($22,111,251), and assigned ($71,427). The General Fund is the main operating fund of the City. At the end of the fiscal year total fund balance was $6,996,436. Unassigned fund balance was $6,123,392, $801,503 was committed for compensated absences, and $71,541 was reported as nonspendable to offset inventory and prepaid expenses. 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 49.22% 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 $15,990 in the fund balance of the General Fund during the current fiscal year. Total revenues were $48,019 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 $33,760 less than the final budget. The EDA Fund recorded a decrease of $1,487,498 in its fund balance during the current fiscal year due to transfer out of $1,150,000 to the Park Improvement Fund for the Becker Park project. Total revenues were greater than budget by $71,267. The fund balance of $2,443,836 was committed for economic development projects. The Debt Service Fund has a total fund balance of $6,080,972 all of which is restricted for the payment of debt service. The net increase in fund balance during the current fiscal year was $1,607. 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 $1,106,826 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 $6,778,918 is committed. Proprietary Funds The City's proprietary funds provide the same type of information found in the government-wide financial statements, but in more detail. Unrestricted net position in the City's enterprise funds totaled $11,901,367 at the end of the fiscal year. The storm drainage, streetlights, and recycling utility funds reported increases in net position from operations of $889,263, $50,497, and $1,902, respectively, and the water and sewer fund reported a decrease in net position from operations of $560,986 and $1,193,235, respectively. 5.2(b) City of Crystal Management's Discussion and Analysis 26 FINANCIAL ANALYSIS OF THE CITY'S FUNDS (CONTINUED) 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 $48,019 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 $33,760 lower than the final budget. General government expenses were higher than budget but public safety, public works, recreation, and community development expenses were lower than budget. Capital Assets The City's net capital assets for its governmental and business-type activities as of December 31, 2019, are $82,019,393. This balance represents a net increase of $1,430,618 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 $1,726,709, or 9.28%, 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 $59,018,000. The City currently has no outstanding G.O. debt. Economic Factors and Next Year's Budgets and Rates Economic factors affect the preparation of annual budgets. The following factors were considered in preparing the City's budget for the 2020 fiscal year:  The 2020 budget includes a 9.03% tax levy increase. This will be supplemented by increases in other revenues to cover an inflationary increase in ---the operating budget.  In 2019, the City completed a utility rate study that produced a modified rate structure. Changes to fixed fees for sewer charges being based on water consumption, increases in the tiered water fees and an increase in storm water fees will result in varying increases to residential and commercial users. 5.2(b) City of Crystal Management's Discussion and Analysis 27 FINANCIAL ANALYSIS OF THE CITY'S FUNDS (CONTINUED) Requests for Information Questions concerning any of the information provided in this report or requests for additional information should be addressed to: City of Crystal Attn: Finance Director 4141 Douglas Drive N. Crystal, MN 55422 5.2(b) 28 5.2(b) 29 BASIC FINANCIAL STATEMENTS 5.2(b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b) Program RevenuesExpensesCharges for ServicesOperating Grants and Capital Grants and Governmental ActivitiesBusiness-Type ActivitiesTotalGovernmental activities General government 4,523,764$ 177,914$ 18,773$ 36,202$ (4,290,875)$ -$ (4,290,875)$ Public safety 7,585,509 318,706 713,251 - (6,553,552) - (6,553,552) Public works 4,479,566 - - 2,056,901 (2,422,665) - (2,422,665) Recreation 3,093,691 552,388 29,936 - (2,511,367) - (2,511,367) Community development 1,398,666 1,169,663 - 53,392 (175,611) - (175,611) Interest on long-term debt 462,218 - - - (462,218) - (462,218) Total governmental activities 21,543,414 2,218,671 761,960 2,146,495 (16,416,288) - (16,416,288) Business-type activities Water 3,094,824 3,707,733 170,040 - - 782,949 782,949 Sanitary sewer 2,164,837 2,446,851 - - - 282,014 282,014 Storm drainage 1,539,162 1,226,403 2,390,172 - - 2,077,413 2,077,413 Street lights 151,732 194,950 - - - 43,218 43,218 Recycling 334,947 342,336 - - - 7,389 7,389 Total business-type activities 7,285,502 7,918,273 2,560,212 - - 3,192,983 3,192,983 Total primary government 28,828,916$ 10,136,944$ 3,322,172$ 2,146,495$ (16,416,288) 3,192,983 (13,223,305) General revenues Property taxes 11,619,642- 11,619,642 Unrestricted state aids 2,025,682 - 2,025,682 Unrestricted investment earnings 969,103 148,899 1,118,002 Other general revenue 12,770 - 12,770 Gain on sale of capital assets 146,270 - 146,270 Transfers 4,154,441 (4,154,441) - Total general revenues and transfers 18,927,908 (4,005,542) 14,922,366 Change in net position 2,511,620 (812,559) 1,699,061 Net position - beginning, as previously stated 83,383,089 32,529,188 115,912,277 Prior period adjustment (see Note 18)(295,000) - (295,000) Net position - beginning, as restated 83,088,089 32,529,188 115,617,277 Net position - ending 85,599,709$ 31,716,629$ 117,316,338$ 31 See notes to financial statements.Net (Expense) Revenues and Changes in Net PositionFunctions/ProgramsCity of CrystalStatement of ActivitiesYear Ended December 31, 20195.2(b) General Fund EDA - Special Revenue Debt Service Park Improvement - Capital Projects Assets Cash and investments 7,288,705$ 2,140,093$ 6,075,683$ 1,315,847$ Temporarily restricted cash 235,985 - - - Taxes receivable 129,288 9,493 5,896 2,181 Special assessments receivable 59,243 100,000 9,911,385 - Accounts receivable 85,533 - - - Accrued interest 83,042 - - - Due from other governments 79,427 - - 292,750 Inventories 26,146 - - - Prepaid expenses 45,395 - - - Land held for resale - 309,000 - - Total assets 8,032,764$ 2,558,586$ 15,992,964$ 1,610,778$ Liabilities Accounts payable 158,690$ 776$ 4,200$ 23,123$ Due to other governments 137,803 - - 1,470 Salaries and benefits payable 262,005 5,502 - - Deposits payable 235,985 - - - Contracts payable - - - 178,173 Unearned revenue 95,100 - - - Total liabilities 889,583 6,278 4,200 202,766 Deferred Inflows of Resources State aid related deferred inflows of resources - - - - Unavailable revenue - property taxes 87,631 8,472 - 2,181 Unavailable revenue - special assessments 59,114 100,000 9,907,792 - Total deferred inflows of resources 146,745 108,472 9,907,792 2,181 Fund Balances Nonspendable 71,541 - - - Restricted - - 6,080,972 - Committed 801,503 2,443,836 - 1,405,831 Assigned - - - - Unassigned 6,123,392 - - - Total fund balances 6,996,436 2,443,836 6,080,972 1,405,831 Total liabilities, deferred inflow of resouces, and fund balances 8,032,764$ 2,558,586$ 15,992,964$ 1,610,778$ See notes to financial statements.32 City of Crystal Balance Sheet - Governmental Funds December 31, 2019 5.2(b) Street Reconstruction - Capital Projects Police Equipment Revolving - Capital Projects Other Governmental Funds Total Governmental Funds 8,484,186$ 2,915,639$ 9,240,952$ 37,461,105$ - - - 235,985 6,337 - - 153,195 2,400,633 - - 12,471,261 - - - 85,533 - - - 83,042 - - 6,840 379,017 - - - 26,146 - - 1,295 46,690 - - - 309,000 10,891,156$ 2,915,639$ 9,249,087$ 51,250,974$ 537$ 191$ 95,427$ 282,944$ - - 48,739 188,012 - - - 267,507 - - - 235,985 - - - 178,173 - - - 95,100 537 191 144,166 1,247,721 1,710,022 - - 1,710,022 6,337 - - 104,621 2,395,342 - - 12,462,248 4,111,701 - - 14,276,891 - - - 71,541 - - 1,267,779 7,348,751 6,778,918 2,915,448 7,765,715 22,111,251 - - 71,427 71,427 - - - 6,123,392 6,778,918 2,915,448 9,104,921 35,726,362 10,891,156$ 2,915,639$ 9,249,087$ 51,250,974$ 33 5.2(b) 34 5.2(b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b) General Fund EDA - Special Revenue Debt Service Park Improvement - Capital Projects Revenues Property taxes 9,690,226$ 281,636$ -$ 248,647$ Special assessments 53,392 - 2,034,354 - Licenses and permits 835,712 - - - Intergovernmental 1,907,763 - - 502,750 Charges for services 808,321 18,000 - 33,690 Fine and forfeitures 287,985 - - - Interest 116,463 93,375 143,275 42,902 Miscellaneous 35,704 2,000 - 293,755 Total revenues 13,735,566 395,011 2,177,629 1,121,744 Expenditures Current General government 2,234,884 - - - Public safety 7,335,302 - - - Public works 1,411,680 - - - Recreation 2,668,952 - - 110,262 Economic development 557,867 337,509 - - Debt service Principal - - 1,700,000 - Interest and other charges - - 476,022 - Capital outlay - 100,000 - 2,688,555 Total expenditures 14,208,685 437,509 2,176,022 2,798,817 Excess of revenues over (under) expenditures (473,119) (42,498) 1,607 (1,677,073) Other Financing Sources (Uses) Proceeds from sale of capital asset 37,591 - - - Transfers in 458,861 - - 1,150,000 Transfers out (7,343) (1,150,000) - - Total other financing sources (uses)489,109 (1,150,000) - 1,150,000 Net change in fund balances 15,990 (1,192,498) 1,607 (527,073) Fund Balances Beginning of year, as previously stated 6,980,446 3,931,334 6,079,365 1,932,904 Prior period adjustment (see Note 18)- (295,000) - - Beginning of year, as restated 6,980,446 3,636,334 6,079,365 1,932,904 End of year 6,996,436$ 2,443,836$ 6,080,972$ 1,405,831$ See notes to financial statements.36 City of Crystal Statement of Revenues, Expenditures, and Changes in Fund Balances - Governmental Funds Year Ended December 31, 2019 5.2(b) Street Reconstruction - Capital Projects Police Equipment Revolving - Capital Projects Other Governmental Funds Total Governmental Funds 110,144$ 154,938$ 1,114,774$ 11,600,365$ 659,064 - - 2,746,810 - - - 835,712 927,704 1,901 623,934 3,964,052 25,130 - 1,227 886,368 - - 8,215 296,200 224,077 82,933 246,170 949,195 (11,523) - 86,285 406,221 1,934,596 239,772 2,080,605 21,684,923 - - 244,630 2,479,514 - 1,795 75,883 7,412,980 - - - 1,411,680 - - 13,449 2,792,663 - - 216,995 1,112,371 - - 215,357 1,915,357 - - 32,596 508,618 828,345 154,082 880,368 4,651,350 828,345 155,877 1,679,278 22,284,533 1,106,251 83,895 401,327 (599,610) 575 19,428 88,676 146,270 - - 406,924 2,015,785 - - (399,581) (1,556,924) 575 19,428 96,019 605,131 1,106,826 103,323 497,346 5,521 5,672,092 2,812,125 8,607,575 36,015,841 - - - (295,000) 5,672,092 2,812,125 8,607,575 35,720,841 6,778,918$ 2,915,448$ 9,104,921$ 35,726,362$ 37 5.2(b) 38 5.2(b) &LW\RI&U\VWDO 5HFRQFLOLDWLRQRIWKH6WDWHPHQWRI5HYHQXHV ([SHQGLWXUHVDQG&KDQJHVLQ)XQG%DODQFHVWR <HDU(QGHG'HFHPEHU &DSLWDORXWOD\VDUHUHSRUWHGLQJRYHUQPHQWDOIXQGVDVH[SHQGLWXUHV+RZHYHULQWKH6WDWHPHQWRI$FWLYLWLHV WKHFRVWRIWKRVHDVVHWVLVDOORFDWHGRYHUWKHHVWLPDWHGXVHIXOOLYHVDVGHSUHFLDWLRQH[SHQVH &DSLWDORXWOD\V 'HSUHFLDWLRQH[SHQVH &RQWULEXWHGFDSLWDO 7KHQHWHIIHFWRIYDULRXVPLVFHOODQHRXVWUDQVDFWLRQVLQYROYLQJFDSLWDODVVHWVLHVDOHVWUDGHLQVDQGGRQDWLRQV LVWRGHFUHDVHQHWSRVLWLRQ 5HYHQXHVUHODWLQJWRGHOLQTXHQWWD[HVVSHFLDODVVHVVPHQWVDQGQRWHVUHFHLYDEOHDUHLQFOXGHGLQWKHFKDQJH LQQHWSRVLWLRQEXWDUHH[FOXGHGIURPWKHQHWFKDQJHLQIXQGEDODQFHVXQWLOWKH\DUHDYDLODEOHWROLTXLGDWH OLDELOLWLHVRIWKHFXUUHQWSHULRG 7KHLVVXDQFHRIORQJWHUPGHEWSURYLGHVFXUUHQWILQDQFLDOUHVRXUFHVWRJRYHUQPHQWDOIXQGVZKLOHUHSD\PHQWRIWKH SULQFLSDORIORQJWHUPGHEWFRQVXPHVWKHFXUUHQWILQDQFLDOUHVRXUFHVRIJRYHUQPHQWDOIXQGV1HLWKHUWUDQVDFWLRQ KRZHYHUKDVDQ\HIIHFWRQQHWSRVLWLRQ$OVRJRYHUQPHQWDOIXQGVUHSRUWWKHHIIHFWRISUHPLXPVGLVFRXQWV DQGVLPLODULWHPVZKHQGHEWLVILUVWLVVXHGZKHUHDVWKHVHDPRXQWVDUHGHIHUUHGDQGDPRUWL]HGLQWKH6WDWHPHQW RI$FWLYLWLHV %RQGSULQFLSDOSD\PHQWVDQGDGMXVWPHQWV 6RPHH[SHQVHVUHSRUWHGLQWKH6WDWHPHQWRI$FWLYLWLHVGRQRWUHTXLUHWKHXVHRIFXUUHQWILQDQFLDOUHVRXUFHVDQG WKHUHIRUHDUHQRWUHSRUWHGDVH[SHQGLWXUHVLQJRYHUQPHQWDOIXQGV $PRUWL]DWLRQRIERQGSUHPLXP $PRUWL]DWLRQRIERQGGLVFRXQW $FFUXHGLQWHUHVWSD\DEOH &RPSHQVDWHGDEVHQFHV 23(%H[SHQVH 3HQVLRQFRVWVLQJRYHUQPHQWDOIXQGVDUHUHFRJQL]HGZKHQHPSOR\HUFRQWULEXWLRQVDUHPDGH2QWKH6WDWHPHQWRI $FWLYLWLHVSHQVLRQFRVWVDUHUHFRJQL]HGRQWKHDFFUXDOEDVLV7KHGLIIHUHQFHEHWZHHQDFWXDOHPSOR\HU FRQWULEXWLRQVDQGDFFUXDOEDVLVSHQVLRQFRVWVLVUHIOHFWHGLQSHQVLRQH[SHQVH 3HQVLRQH[SHQVH $QLQWHUQDOVHUYLFHIXQGLVXVHGE\PDQDJHPHQWWRFKDUJHWKHFRVWVRILQVXUDQFHWRLQGLYLGXDOIXQGV7KHFKDQJH LQQHWSRVLWLRQRIWKH6HOI,QVXUDQFH,QWHUQDO6HUYLFH)XQGLVLQFOXGHGLQJRYHUQPHQWDODFWLYLWLHVLQWKH6WDWHPHQWRI 1HW3RVLWLRQ 1HWLQFRPHORVVIURPHTXLW\LQWHUHVWVLVLQFOXGHGLQWKHFKDQJHLQQHWSRVLWLRQEXWLVH[FOXGHGIURPWKHFKDQJHLQ IXQGEDODQFHV &KDQJHLQQHWSRVLWLRQJRYHUQPHQWDODFWLYLWLHV 6HHQRWHVWRILQDQFLDOVWDWHPHQWV 1HWFKDQJHLQIXQGEDODQFHVJRYHUQPHQWDOIXQGV $PRXQWVUHSRUWHGIRUJRYHUQPHQWDODFWLYLWLHVLQWKH6WDWHPHQWRI$FWLYLWLHVDUHGLIIHUHQWEHFDXVH WKH6WDWHPHQWRI$FWLYLWLHV*RYHUQPHQWDO)XQGV 5.2(b) City of Crystal Statement of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual - General Fund Year Ended December 31, 2019 Original Final Actual Amounts Revenues Property taxes 9,716,249$ 9,716,249$ 9,690,226$ (26,023)$ Special assessments 70,500 70,500 53,392 (17,108) Licenses and permits 837,610 837,610 835,712 (1,898) Intergovernmental 1,912,339 1,912,339 1,907,763 (4,576) Charges for services 817,537 817,537 808,321 (9,216) Fine and forfeitures 292,000 292,000 287,985 (4,015) Interest 68,000 68,000 116,463 48,463 Miscellaneous revenues 69,350 69,350 35,704 (33,646) Total revenues 13,783,585 13,783,585 13,735,566 (48,019) Expenditures General government Mayor and council 151,016 151,016 124,369 (26,647) Administration 1,077,448 1,077,448 1,215,973 138,525 Human resources 59,154 59,154 56,483 (2,671) Assessing 315,180 315,180 313,474 (1,706) Legal 68,000 68,000 56,424 (11,576) Elections 15,200 15,200 15,038 (162) Finance 369,506 369,506 446,029 76,523 City buildings - - 7,094 7,094 Total general government 2,055,504 2,055,504 2,234,884 179,380 Public safety Police 5,918,568 5,918,568 5,878,935 (39,633) Fire 1,445,107 1,445,107 1,456,367 11,260 Total fire 7,363,675 7,363,675 7,335,302 (28,373) Public works Engineering 418,560 418,560 423,938 5,378 Street maintenance 1,003,150 1,003,150 987,742 (15,408) Total public works 1,421,710 1,421,710 1,411,680 (10,030) Recreation Park maintenance 996,097 996,097 937,276 (58,821) Forestry 85,300 85,300 53,443 (31,857) Recreation 975,429 975,429 955,467 (19,962) Community center 418,228 418,228 427,143 8,915 Waterslide/swimming pool 279,033 279,033 295,623 16,590 Total parks and recreation 2,754,087 2,754,087 2,668,952 (85,135) See notes to financial statements.40 Variance with Final Budget Budgeted Amounts 5.2(b) City of Crystal Statement of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual - General Fund Year Ended December 31, 2019 Original Final Actual Amounts Expenditures (Continued) Community development Planning and code enforcement 647,469$ 647,469$ 557,867$ (89,602)$ Total expenditures 14,242,445 14,242,445 14,208,685 (33,760) Excess of revenues under expenditures (458,860) (458,860) (473,119) (14,259) Other Financing Source Proceeds from sale of capital asset - - 37,591 37,591 Transfers in 458,860 458,860 458,861 1 Transfers out - - (7,343) (7,343) Total other financing sources (uses)458,860 458,860 489,109 30,249 Net change in fund balances -$ -$ 15,990 15,990$ Fund Balance Beginning of year 6,980,446 End of year 6,996,436$ See notes to financial statements.41 Budgeted Amounts Final Budget - Positive (Negative) 5.2(b) 42 5.2(b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b) Water Sewer Storm Drainage Streetlights Assets Current assets Cash and investments (including cash equivilants)1,710,206$ 1,902,999$ 857,720$ 704,025$ Special assessment receivable 383,632 - - - Accounts receivable 739,344 492,343 229,428 34,593 Due from other funds - 30,000 - 30,000 Due from other governments 1,235 - 1,135,156 - Inventories 33,213 13,652 4,745 - Prepaid expenses 158,448 520 2,760 - Total current assets 3,026,078 2,439,514 2,229,809 768,618 Noncurrent assets Equity interest in joint venture 4,621,447 - - - Advance to other funds - 120,000 - 120,000 Capital assets Land 42,200 - 716,862 - Infrastructure 3,574,374 9,660,425 14,586,698 627,483 Office equipment - - - 16,861 Equipment 1,918,002 244,950 11,805 - Construction in progress 27,359 5,305 1,945,745 5,620 Total capital assets 5,561,935 9,910,680 17,261,110 649,964 Less accumulated depreciation (2,592,442) (4,610,651) (6,036,210) (329,124) Net capital assets 2,969,493 5,300,029 11,224,900 320,840 Total noncurrent assets 7,590,940 5,420,029 11,224,900 440,840 Deferred Outflows of Resources Pension-related deferred outflows 18,373 17,569 8,783 - OPEB-related deferred outflows 4,613 4,539 2,270 - Total deferred outflows of resources 22,986 22,108 11,053 - Liabilities Current liabilities Accounts payable 32,633 10,515 3,817 10,507 Salaries and benefits payable 7,616 7,588 3,794 - Deposits payable 1,800 - - - Due to other funds 60,000 - - - Due to other governments 230,902 52 26 - Current compensated absences 27,501 27,501 13,750 - Total current liabilities 360,452 45,656 21,387 10,507 Noncurrent liabilities Compensated absences 19,140 19,140 9,570 - Advances from other funds 240,000 - - - Net pension liability 219,156 209,559 104,769 - Total OPEB liability 102,230 100,599 50,298 - Total noncurrent liabilities 580,526 329,298 164,637 - Deferred Inflows of Resources Pension-related deferred inflows 55,174 52,758 26,376 - OPEB-related deferred intflows 5,908 5,814 2,907 - Total deferred intflows of resources 61,082 58,572 29,283 - Net Position Net investment in capital assets 2,969,493 5,300,029 11,224,900 320,840 Unrestricted 6,668,451 2,148,096 2,025,555 878,111 Total net position 9,637,944$ 7,448,125$ 13,250,455$ 1,198,951$ See notes to financial statements.44 City of Crystal Statement of Net Position - Proprietary Funds December 31, 2019 5.2(b) Recycling Utility Totals 126,624$ 5,301,574$ 759,457$ - 383,632 - 54,538 1,550,246 - - 60,000 - - 1,136,391 - - 51,610 - - 161,728 - 181,162 8,645,181 759,457 - 4,621,447 - - 240,000 - - 759,062 - - 28,448,980 - - 16,861 - - 2,174,757 - - 1,984,029 - - 33,383,689 - - (13,568,427) - - 19,815,262 - - 24,676,709 - - 44,725 - - 11,422 - - 56,147 - 8 57,480 251,493 - 18,998 - - 1,800 - - 60,000 - - 230,980 - - 68,752 - 8 438,010 251,493 - 47,850 - - 240,000 - - 533,484 - - 253,127 - - 1,074,461 - - 134,308 - - 14,629 - - 148,937 - - 19,815,262 - 181,154 11,901,367 507,964 181,154$ 31,716,629$ 507,964$ 45 Governmental Activities - Internal Service Fund 5.2(b) Water Sewer Storm Drainage Operating revenues Charges for services 3,469,232$ 2,446,851$ 1,226,403$ Other charges 238,501 - - Miscellaneous - - - Total operating revenues 3,707,733 2,446,851 1,226,403 Operating expenses Personal services 420,797 367,718 187,107 Other services 265,793 223,556 1,051,110 Supplies 70,862 36,747 8,200 Water purchases 2,185,192 - - Sewage disposal charges - 1,431,755 - Electric service - - - Recycling charges - - - Depreciation 144,980 105,061 292,745 Total operating expenses 3,087,624 2,164,837 1,539,162 Operating income (loss)620,109 282,014 (312,759) Nonoperating revenues (expenses) Investment income 45,696 63,420 14,761 Interest expense (7,200) - - Operating grants and contributions - - 2,390,172 Net income (loss) from joint venture 170,040 - - Total nonoperating revenue (expenses)208,536 63,420 2,404,933 Income before capital contributions and transfers 828,645 345,434 2,092,174 Capital contributions (1,197,646) (1,346,684) (1,151,250) Transfers out (191,985) (191,985) (51,661) Change in net position (560,986) (1,193,235) 889,263 Net position - beginning 10,198,930 8,641,360 12,361,192 End of year 9,637,944$ 7,448,125$ 13,250,455$ See notes to financial statements.46 City of Crystal Statement of Revenues, Expenses, and Changes in Net Position - Proprietary Funds Year Ended December 31, 2019 5.2(b) Streetlights Recycling Utility Totals 194,950$ 342,336$ 7,679,772$ -$ - - 238,501 - - - - 8,483 194,950 342,336 7,918,273 8,483 - - 975,622 - 9,227 104 1,549,790 393,799 - - 115,809 - - - 2,185,192 - - - 1,431,755 - 110,288 - 110,288 - - 334,843 334,843 - 32,217 - 575,003 - 151,732 334,947 7,278,302 393,799 43,218 7,389 639,971 (385,316) 21,874 3,148 148,899 19,908 - - (7,200) - - - 2,390,172 - - - 170,040 - 21,874 3,148 2,701,911 19,908 65,092 10,537 3,341,882 (365,408) - - (3,695,580) - (14,595) (8,635) (458,861) - 50,497 1,902 (812,559) (365,408) 1,148,454 179,252 32,529,188 873,372 1,198,951$ 181,154$ 31,716,629$ 507,964$ 47 Governmental Activities - Internal Service Fund 5.2(b) :DWHU 6HZHU 6WRUP'UDLQDJH 6WUHHW/LJKWV &DVK)ORZV2SHUDWLQJ$FWLYLWLHV 5HFHLSWVIURPFXVWRPHUVDQGXVHUV 3D\PHQWVWRVXSSOLHUV 3D\PHQWVWRHPSOR\HHV 1HWFDVKIORZVRSHUDWLQJDFWLYLWLHV &DVK)ORZV1RQFDSLWDO )LQDQFLQJ$FWLYLWLHV &DSLWDOFRQWULEXWLRQV 7UDQVIHUWRRWKHUIXQGV 1HWFDVKIORZVQRQFDSLWDO ILQDQFLQJDFWLYLWLHV &DVK)ORZV&DSLWDODQG5HODWHG )LQDQFLQJ$FWLYLWLHV &KDQJHLQDGYDQFHWRRWKHUIXQGV &KDQJHLQGXHWRRWKHUIXQGV &KDQJHLQDVVHVVPHQWVUHFHLYDEOH ,QWHUHVWSDLGRQGHEW *UDQWVDQGFRQWULEXWLRQV $FTXLVLWLRQRIFDSLWDODVVHWV 1HWFDVKIORZVFDSLWDODQGUHODWHG ILQDQFLQJDFWLYLWLHV &DVK)ORZV,QYHVWLQJ$FWLYLWLHV ,QWHUHVWDQGGLYLGHQGVUHFHLYHG 1HWFKDQJHLQFDVKDQGFDVKHTXLYDOHQWV &DVKDQGFDVKHTXLYDOHQWV-DQXDU\ &DVKDQGFDVKHTXLYDOHQWV'HFHPEHU 5HFRQFLOLDWLRQRI2SHUDWLQJ ,QFRPH/RVVWR1HW&DVK )ORZV2SHUDWLQJ$FWLYLWLHV 2SHUDWLQJLQFRPHORVV $GMXVWPHQWVWRUHFRQFLOHRSHUDWLQJ LQFRPHORVVWRQHWFDVKIORZV RSHUDWLQJDFWLYLWLHV 'HSUHFLDWLRQH[SHQVH $FFRXQWVUHFHLYDEOH 'XHIURPRWKHUJRYHUQPHQWV 3UHSDLGLWHPV ,QYHQWRU\ $FFRXQWVSD\DEOH 'XHWRRWKHUJRYHUQPHQWDOXQLWV 6DODULHVSD\DEOH 'HSRVLWVSD\DEOH 23(% 3HQVLRQUHODWHGDFWLYLW\ &RPSHQVDWHGDEVHQFHVSD\DEOH 7RWDODGMXVWPHQWV 1HWFDVKIORZV RSHUDWLQJDFWLYLWLHV 1RQFDVK&DSLWDODQG5HODWHG )LQDQFLQJ$FWLYLWLHV 1HWLQFRPHORVVIURPMRLQWYHQWXUH 6HHQRWHVWRILQDQFLDOVWDWHPHQWV &LW\RI&U\VWDO 6WDWHPHQWRI&DVK)ORZV3URSULHWDU\)XQGV <HDU(QGHG'HFHPEHU 5.2(b) 5HF\FOLQJ 8WLOLW\ 7RWDOV ,QWHUQDO6HUYLFH )XQGV 5.2(b) Hennepin Recycling Group Custodial Fund Assets Cash and investments (including cash equivalents)911,985$ Liabilities Accounts payable 51,909$ Net Position Held in trust 860,076$ Hennepin Recycling Group Custodial Fund Additions Charges for serivces 925,968$ Investment income 30,778 Intergovernmental 126,378 Refunds and reimbursements 137 Other income 283 Total additions 1,083,544 Deductions Recycling services 1,254,239$ Administrative and grant services 24,620 Other contract and professional services 94,831 Office supplies 8,478 Rentals 24,122 Total deductions 1,406,290 Change in net position (322,746) Net Position Beginning of year 1,182,822 End of year 860,076$ See notes to financial statements.50 City of Crystal Statement of Fiduciary Net Position December 31, 2019 Statement of Changes Fiduciary Net Position Year Ended December 31, 2019 5.2(b) 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. 5.2(b) 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. 5.2(b) &LW\RI&U\VWDO 1RWHVWR)LQDQFLDO6WDWHPHQWV 127(±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±7KLVLVWKHJRYHUQPHQW VSULPDU\RSHUDWLQJIXQG,WDFFRXQWVIRUDOOILQDQFLDO UHVRXUFHVRIWKHJHQHUDOJRYHUQPHQWH[FHSWWKRVHUHTXLUHGWREHDFFRXQWHGIRULQDQRWKHUIXQG ('$±6SHFLDO5HYHQXH±7KLVEOHQGHGFRPSRQHQWXQLWLVXVHGWRDFFRXQWIRUWKH&LW\ VKRXVLQJDQG UHGHYHORSPHQWDFWLYLWLHV6LJQLILFDQWUHYHQXHVRXUFHVLQFOXGHSURSHUW\WD[HVLQWHUJRYHUQPHQWDO UHYHQXHVDQGFKDUJHVIRUVDOHV 'HEW6HUYLFH±7KLVIXQGDFFRXQWVIRUUHVRXUFHVDFFXPXODWHGDQGSD\PHQWVPDGHIRUSULQFLSDODQG LQWHUHVWRQORQJWHUPJHQHUDOREOLJDWLRQGHEWDQGWD[LQFUHPHQWUHYHQXHQRWHVRIJRYHUQPHQWDO IXQGV 3DUN,PSURYHPHQW±&DSLWDO3URMHFWV±7KLVIXQGLVXVHGWRDFFXPXODWHIXQGVWRSD\IRUSDUN LPSURYHPHQWV7KHPDLQILQDQFLQJVRXUFHVLQFOXGHSURSHUW\WD[HVDQGLQWHUHVW 6WUHHW5HFRQVWUXFWLRQ±&DSLWDO3URMHFWV±7KLVIXQGLVXVHGWRDFFRXQWIRURQJRLQJVWUHHW UHFRQVWUXFWLRQSURMHFWVLQWKH&LW\7KH&LW\KDVEHHQGLYLGHGLQWRDWRWDORIVL[WHHQUHFRQVWUXFWLRQ SKDVHV 5.2(b) 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. Streetlights – 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 Fiduciary 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. 5.2(b) 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. 5.2(b) 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: x Delinquent – amounts billed to property owners but not yet paid x 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. 5.2(b) 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 5.2(b) 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: x 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. x 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. x 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. x 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. x 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. 5.2(b) 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. 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. 5.2(b) &LW\RI&U\VWDO 1RWHVWR)LQDQFLDO6WDWHPHQWV 127(±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x3ULRUWRHDFK6HSWHPEHUWKH&LW\0DQDJHUVXEPLWVWRWKH&LW\&RXQFLOSURSRVHG RSHUDWLQJEXGJHWVIRUWKHILVFDO\HDUFRPPHQFLQJWKHIROORZLQJ-DQXDU\7KHRSHUDWLQJ EXGJHWVLQFOXGHSURSRVHGH[SHQGLWXUHVDQGWKHPHDQVRIILQDQFLQJWKHP 5.2(b) 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 x 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. x Prior to proposed budgets being approved, public hearings are conducted to obtain taxpayer comments. x In December, final budgets are legally enacted by the City Council through passage of a resolution. x 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. x 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. x All budget amounts lapse at the end of the year to the extent they have not been expended. x 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. x 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. 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. 5.2(b) 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) 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 $2,140,922 and the bank balance was $2,456,620. All of the bank balance was covered by FDIC insurance or collateralized by pledged collateral held in the City's name at Wells Fargo. 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. 5.2(b) 63 City of Crystal Notes to Financial Statements NOTE 2 – DEPOSITS AND INVESTMENTS (CONTINUED) 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: x 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. x 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 x 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. x Time deposits that are fully insured by the Federal Depository Insurance Corporation. x Bankers' acceptances of United States banks. x Money market mutual funds. x Government investment pools, including the Minnesota Municipal Money Market Fund. As of December 31, 2019, 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 26,559,469$ 2,982,347$ 19,968,634$ 3,608,488$ -$ Government securities 2,745,451 2,745,451 - - - State and local government bonds 417,161 - 417,161 - - Money market accounts 12,805,359 12,805,359 - - - Total 42,527,440$ 18,533,157$ 20,385,795$ -$ -$ Investment Maturities Investment Type 5.2(b) 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, 2019, 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, 2019, investments that exceeded 5% of the City's total investments were investments in Freddie Mac (6.7%) and Federal Home Loan Bank (14.2%). The City has the following recurring fair value measurements as of December 31, 2019: x $29,722,081 of investments are valued using a matrix pricing model (Level 2 inputs) The following summary reconciles cash and investments to the financial statements: Cash on hand 1,744$ Carrying amount of deposits 2,140,922 Carrying amount of investments 42,527,440 Total 44,670,106$ Statement of Net Position Cash and investments 43,522,136$ Cash with fiscal agent 235,985 Statement of Fiduciary Net Position Cash and investments 911,985 Total deposits and investments 44,670,106$ 5.2(b) &LW\RI&U\VWDO 1RWHVWR)LQDQFLDO6WDWHPHQWV 127(±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±,17(5)81'75$16)(56 ,QWHUIXQGWUDQVIHUVIRUWKH\HDUHQGHG'HFHPEHUDUHDVIROORZV 1RQPDMRU 3DUN *RYHUQPHQWDO 7UDQVIHUV2XW *HQHUDO ,PSURYHPHQW )XQGV 7RWDO *HQHUDO ('$ 1RQPDMRUJRYHUQPHQWDOIXQGV :DWHU 6DQLWDU\VHZHU 6WRUPGUDLQDJH 6WUHHWOLJKWV 5HF\FOLQJ 7RWDO 7UDQVIHUV,Q 7UDQVIHUVDUHXVHGWRPRYHUHYHQXHVIURPWKHIXQGWKDWVWDWXWHRUEXGJHWUHTXLUHVWRFROOHFWWKHPWR WKHIXQGWKDWVWDWXWHRUEXGJHWUHTXLUHVWRH[SHQGWKHPDVVLVWZLWKFDSLWDOQHHGVDQGFUHDWHDQG FORVHIXQGV 5.2(b) 66 City of Crystal Notes to Financial Statements NOTE 5 – CAPITAL ASSETS Capital asset activity for the year ended December 31, 2019, 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 6,829,350 2,778,456 (6,781,135) 2,826,671 Total capital assets not being depreciated 13,689,886 2,778,456 (6,781,135) 9,687,207 Capital assets being depreciated Buildings and structures 16,930,730 2,696,505 - 19,627,235 Improvements other than buildings 6,002,383 826,418 - 6,828,801 Machinery and equipment 4,182,531 2,454,615 (106,586) 6,530,560 Office equipment and furnishings 903,877 111,657 - 1,015,534 Software 208,467 104,470 - 312,937 Vehicles and trailers 2,903,111 827,363 (283,434) 3,447,040 Traffic and transportation systems 63,368,091 5,312,548 - 68,680,639 Park systems 200,367 694,382 - 894,749 Total capital assets being depreciated 94,699,557 13,027,958 (390,020) 107,337,495 Less accumulated depreciation for Buildings and structures (7,695,352) (945,447) - (8,640,799) Improvements other than buildings (3,513,687) (195,325) - (3,709,012) Machinery and equipment (2,186,242) (1,293,557) 106,131 (3,373,668) Office equipment and furnishings (501,891) (80,964) - (582,855) Software (181,692) (92,905) - (274,597) Vehicles and trailers (1,862,148) (687,800) 245,089 (2,304,859) Traffic and transportation systems (33,414,207) (2,371,753) - (35,785,960) Park systems (138,518) (10,303) - (148,821) Total accumulated depreciation (49,493,737) (5,678,054) 351,220 (54,820,571) Total capital assets being depreciated, net 45,205,820 7,349,904 (38,800) 52,516,924 Governmental activities capital position, net 58,895,706$ 10,128,360$ (6,819,935)$ 62,204,131$ 5.2(b) 67 City of Crystal Notes to Financial Statements NOTE 5 – CAPITAL ASSETS (CONTINUED) Capital asset activity for the year ended December 31, 2019, 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 2,517,098 1,911,158 (2,444,227) 1,984,029 Total capital assets not being depreciated 3,463,406 1,911,158 (2,444,227) 2,930,337 Capital assets being depreciated Buildings and structures 2,696,505 - (2,696,505) - Improvements other than buildings 16,861 - - 16,861 Machinery and equipment 4,134,893 - (1,960,136) 2,174,757 Software 104,470 - (104,470) - Vehicles and trailers 680,199 - (680,199) - Utility systems 23,910,474 2,987,759 - 26,898,233 Traffic and transportation systems 1,363,501 - - 1,363,501 Total capital assets being depreciated 32,906,903 2,987,759 (5,441,310) 30,453,352 Less accumulated depreciation for Buildings and structures (358,719) - 358,719 - Improvements other than buildings (10,608) (843) - (11,451) Machinery and equipment (1,844,094) (104,581) 861,593 (1,087,082) Software (61,168) - 61,168 - Vehicles and trailers (402,336) - 402,336 - Utility systems (11,714,016) (438,205) - (12,152,221) Traffic and transportation systems (286,299) (31,374) - (317,673) Total accumulated depreciation (14,677,240) (575,003) 1,683,816 (13,568,427) Total capital assets being depreciated, net 18,229,663 2,412,756 (3,757,494) 16,884,925 Business-type activities capital assets, net 21,693,069$ 4,323,914$ (6,201,721)$ 19,815,262$ 5.2(b) 68 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 1,266,181$ Public safety 91,079 Public works 2,379,837 Parks and recreation 257,141 Total depreciation expense - governmental activities 3,994,238$ Business-type activities Water 144,980$ Sanitary sewer 105,061 Storm drainage 292,745 Street light 32,217 Total depreciation expense - business-type activities 575,003$ 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$ 02/01/24 625,000$ G.O. Improvement Bonds, Series 2009A 08/01/09 2.00%-4.50% 3,360,000 02/01/25 1,675,000 G.O. Improvement Bonds, Series 2011A 08/01/11 0.50%-3.55% 1,705,000 02/01/27 795,000 G.O. Improvement Bonds, Series 2012A 08/01/12 1.50%-2.13% 2,635,000 02/01/28 1,430,000 G.O. Improvement Bonds, Series 2013A 08/01/13 2.00%-3.50% 3,235,000 02/01/29 2,050,000 G.O. Improvement Bonds, Series 2015A 08/01/15 2.50%-3.00% 2,550,000 02/01/31 1,940,000 G.O. Improvement Bonds, Series 2016A 08/25/16 2.00%-2.50% 3,330,000 02/01/32 2,795,000 G.O. Improvement Bonds, Series 2017A 09/14/17 2.00%-3.00% 4,665,000 02/01/33 4,250,000 Total governmental activities 15,560,000$ 5.2(b) 69 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, 2019 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 760,000$ -$ (135,000)$ 625,000$ 625,000$ Improvement Bonds - 2009A 1,845,000 - (170,000) 1,675,000 1,190,000 Improvement Bonds - 2011A 910,000 - (115,000) 795,000 110,000 Improvement Bonds - 2012A 1,615,000 - (185,000) 1,430,000 180,000 Improvement Bonds - 2013A 2,285,000 - (235,000) 2,050,000 225,000 Improvement Bonds - 2015A 2,130,000 - (190,000) 1,940,000 185,000 Improvement Bonds - 2016A 3,050,000 - (255,000) 2,795,000 245,000 Improvement Bonds - 2017A 4,665,000 - (415,000) 4,250,000 330,000 17,260,000 - (1,700,000) 15,560,000 3,090,000 Bond premiums 473,603 - (38,667) 434,936 - Bond discounts (33,264) - 9,312 (23,952) - Subtotal 17,700,339 - (1,729,355) 15,970,984 3,090,000 Total bonds payable 17,700,339 - (1,729,355) 15,970,984 3,090,000 Compensated absences payable 774,914 768,892 (742,303) 801,503 384,979 Governmental activity long-term liabilities 18,475,253$ 768,892$ (2,471,658)$ 16,772,487$ 3,474,979$ Business-type activities Compensated absences payable 140,545$ 89,349$ (113,292)$ 116,602$ 68,752$ 5.2(b) &LW\RI&U\VWDO 1RWHVWR)LQDQFLDO6WDWHPHQWV 127(±/21*7(50'(%7&217,18(' ' 0LQLPXP'HEW3D\PHQWV 0LQLPXPDQQXDOSULQFLSDODQGLQWHUHVWSD\PHQWVUHTXLUHGWRUHWLUHORQJWHUPOLDELOLWLHV <HDU(QGLQJ 'HFHPEHU 3ULQFLSDO ,QWHUHVW 7RWDO *2,PSURYHPHQW%RQGV *RYHUQPHQWDO$FWLYLWLHV 7RWDOGHOLQTXHQWVSHFLDODVVHVVPHQWVUHFHLYDEOHIRUDOOIXQGVIRUWKH\HDUVHQGLQJ'HFHPEHU DQGZHUHDQGUHVSHFWLYHO\ &RPSHQVDWHGDEVHQFHVDUHOLTXLGDWHGE\WKH*HQHUDO('$:DWHU6DQLWDU\6HZHURU6WRUP'UDLQDJH IXQGVGHSHQGLQJXSRQZKHUHHPSOR\HHV WLPHLVDVVLJQHG 127(±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b) &LW\RI&U\VWDO 1RWHVWR)LQDQFLDO6WDWHPHQWV 127(±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±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innesota Statutes&KDSWHUVDQG3(5$'VGHILQHGEHQHILWSHQVLRQSODQVDUH WD[TXDOLILHGSODQVXQGHU6HFWLRQDRIWKH,QWHUQDO5HYHQXH&RGH *HQHUDO(PSOR\HHV5HWLUHPHQW3ODQ $OOIXOOWLPHDQGFHUWDLQSDUWWLPHHPSOR\HHVRIWKH&LW\DUHFRYHUHGE\WKH*HQHUDO(PSOR\HHV3ODQ *HQHUDO(PSOR\HHV3ODQPHPEHUVEHORQJWRWKH&RRUGLQDWHG3ODQ&RRUGLQDWHG3ODQPHPEHUVDUH FRYHUHGE\6RFLDO6HFXULW\ 5.2(b) 72 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 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 5 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 member is 1.2% of average salary for each of the first 10 years of service and 1.7% of average salary for each additional year. Under Method 2, the accrual rate for Coordinated members is 1.7% of average salary 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. Annuities, disability benefits, and survivor benefits are increased effective every January 1. Beginning January 1, 2019, the postretirement increase will be equal to 50% of the cost-of-living adjustment (COLA) announced by the SSA, with a minimum increase of at least 1% and a maximum of 1.5%. Recipients that have been receiving the annuity or benefit for at least a full year as of the June 30 before the effective date of the increase will receive the full increase. For recipients receiving the annuity or benefit for at least one month but less than a full year as of the June 30 before the effective date of the increase will receive a reduced prorated increase. For members retiring on January 1, 2024, or later, the increase will be delayed until normal retirement age (age 65 if hired prior to July 1, 1989, or age 66 for individuals hired on or after July 1, 1989). Members retiring under Rule of 90 are exempt from the delay to normal retirement. 5.2(b) 73 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 10 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 10 years up to 100% after 20 years of credited service. The annuity accrual rate is 3% of average salary for each year of service. A full, unreduced pension is earned when members are age 55 and vested, or for members who were first hired prior to July 1, 1989, when age plus years of service equal at least 90. Annuities, disability benefits, and survivor benefits are increased effective every January 1. Beginning January 1, 2019, the postretirement increase will be fixed at 1%. Recipients that have been receiving the annuity or benefit for at least 36 months as of the June 30 before the effective date of the increase will receive the full increase. For recipients receiving the annuity or benefit for at least 25 months but less than 36 months as of the June 30 before the effective date of the increase will receive a reduced prorated increase. 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 2019 and the City was required to contribute 7.5% for Coordinated Plan members. The City's contributions to the General Employees Fund for the year ended December 31, 2019, were $343,159. The City's contributions were equal to the required contributions as set by state statute. Police and Fire Fund Contributions Police and Fire member's contribution rates increased from 10.8% of pay to 11.3% and employer rates increased from 16.2% to 16.95% on January 1, 2019. The City's contributions to the Police and Fire Fund for the year ended December 31, 2019, were $531,629. The City's contributions were equal to the required contributions as set by state statute. 5.2(b) 74 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, 2019, the City reported a liability of $3,499,715 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 2019. 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 $108,829. The net pension liability was measured as of June 30, 2019, and the total pension liability used to calculate the net pension liability was determined by an actuarial valuation as of that date. The City's proportionate share of the net pension liability was based on the City's contributions received by PERA during the measurement period for employer payroll paid dates from July 1, 2018, through June 30, 2019, relative to the total employer contributions received from all of PERA's participating employers. At June 30, 2019, the City's proportionate share was 0.0633%, which was a decrease of 0.0010% from its proportionate share measured as of June 30, 2018. City's proportionate share of the net pension liability 3,499,715$ State of Minnesota's proportionate share of the net pension liability associated with the City 108,829 Total 3,608,544$ For the year ended December 31, 2019, the City recognized pension expense of $364,550 for its proportionate share of General Employees Plan's pension expense. Included in the amount, the City recognized $8,150 as pension expense (and grant revenue) for its proportionate share of the State of Minnesota's contribution of $16 million to the General Employees Fund. 5.2(b) 75 City of Crystal Notes to Financial Statements NOTE 9 – PENSION PLANS (CONTINUED) Public Employees' Retirement Association (Continued) D. Pension Costs (Continued) General Employees Fund Pension Costs (Continued) At December 31, 2019, the City reported its proportionate share of the General Employees Plan's deferred outflows of resources and deferred inflows of resources, related to pensions from the following sources: Differences between expected and actual economic experience 101,522$ -$ Changes in actuarial assumptions - 290,044 Difference between projected and actual investment earnings - 377,062 Changes in proportion 20,299 213,973 Contributions paid to PERA subsequent to the measurement date 171,580 - Total 293,401$ 881,079$ Deferred Outflows of Resources Deferred Inflows of Resources $171,580 reported as deferred outflows of resources related to pensions resulting from City contributions subsequent to the measurement date will be recognized as a reduction of the net pension liability in the year ended December 31, 2020. Other amounts reported as deferred outflows and deferred inflows of resources related to pensions will be recognized in pension expense as follows: Pension Year Ending Expense December 31,Amount 2020 (278,915)$ 2021 (400,894) 2022 (85,089) 2023 5,640 Total (759,258)$ 5.2(b) 76 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, 2019, the City reported a liability of $2,947,287 for its proportionate share of the Police and Fire Fund's net pension liability. The net pension liability was measured as of June 30, 2019, 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 proportionate share 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, 2018, through June 30, 2019, relative to the total employer contributions received from all of PERA's participating employers. At June 30, 2019, the City's proportionate share was 0.2804%, which was an increase of 0.0097% from its proportionate share measured as of June 30, 2018. The City also recognized $37,854 for the year ended December 31, 2019, 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 until the plan is 90% funded or until the State Patrol Plan (administered by the Minnesota State Retirement System) is 90% funded, whichever occurs later. In addition, the state will pay $4.5 million on October 1, 2018 and October 1, 2019, in direct state aid. Thereafter, by October 1 of each year, the state will pay $9 million until full funding is reached or July 1, 2048, whichever is earlier. For the year ended December 31, 2019, the City recognized pension expense of $477,589 for its proportionate share of the Police and Fire Plan's pension expense. At December 31, 2019, the City reported its proportionate share of the Police and Fire Plan's deferred outflows of resources and deferred inflows of resources related to pensions from the following sources. Differences between expected and actual economic experience 121,540$ 392,659$ Changes in actuarial assumptions 2,146,784 3,114,004 Difference between projected and actual investment earnings - 608,069 Changes in proportion 534,951 16,201 Contributions paid to PERA subsequent to the measurement date 265,815 - Total 3,069,090$ 4,130,933$ Deferred Outflows of Resources Deferred Inflows of Resources 5.2(b) 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 (Continued) The $265,815 reported as deferred outflows of resources related to pensions resulting from City contributions subsequent to the measurement date will be recognized as a reduction of the net pension liability in the year ended December 31, 2020. Other amounts reported as deferred outflows and inflows of resources related to pensions will be recognized in pension expense as follows: Pension Year Ending Expense December 31, Amount 2020 (126,193)$ 2021 (303,397) 2022 (951,890) 2023 39,117 2024 14,705 Total (1,327,658)$ E. Actuarial Assumptions The total pension liability in the June 30, 2019, actuarial valuation was determined using an individual 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 and, 1.0% per year for the Police and Fire Plan. Actuarial assumptions used in the June 30, 2019 valuation were based on the results of actuarial experience studies. The most recent four-year experience study in the General Employees Plan was completed in 2019. The most recent four-year experience study for Police and Fire Plan was completed in 2016. Economic assumptions were updated in 2018 based on a review of inflation and investment return assumptions. 5.2(b) 78 City of Crystal Notes to Financial Statements NOTE 9 – PENSION PLANS (CONTINUED) Public Employees' Retirement Association (Continued) E. Actuarial Assumptions (Continued) The following changes in actuarial assumptions occurred in 2019: General Employees Fund Changes in Actuarial Assumptions: x The mortality projection scale was changed from MP-2017 to MP-2018. Changes in Plan Provisions: x The employer supplemental contribution was changed prospectively, decreasing from $31.0 million to $21.0 million per year. The State's special funding contribution was changed prospectively, requiring $16.0 million due per year through 2031. Police and Fire Fund Changes in Actuarial Assumptions: x The mortality projection scale was changed from MP-2017 to MP-2018. Changes in Plan Provisions: x There have been no changes since the prior valuation. 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 following table: Asset Class Domestic stocks 35.5 % 5.10 % Private markets 25.0 5.90 Fixed income 20.0 0.75 International equity 17.5 5.90 Cash equivalents 2.0 0.00 Total 100 % Target Allocation Long-Term Expected 5.2(b) 79 City of Crystal Notes to Financial Statements NOTE 9 – PENSION PLANS (CONTINUED) Public Employees' Retirement Association (Continued) F. Discount Rate The discount rate used to measure the total pension liability in 2019 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 these assumptions, the fiduciary net positions of the General Employees Fund and the Police and Fire Fund were 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. G. Pension Liability Sensitivity The following 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 5,753,343$ 3,499,715$ 1,638,897$ 1% Decrease in 1% Increase in City's proportionate share of the Police and Fire Fund net pension liability 6,487,110$ 2,947,287$ (37,796)$ Discount Rate (6.5%) Discount Rate (7.5%) Discount Rate (8.5%) Discount Rate (6.5%) Discount Rate (7.5%) Discount Rate (8.5%) H. 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. 5.2(b) 80 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 no future liability to the City. 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 the contributions made. Total contributions made by the City during fiscal year 2019 were: Contribution Amount Percentage of Covered Payroll Employee Employer Employee Employer Required Rate 2,219$ 2,219$ 5% 5% 5% 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. 5.2(b) &LW\RI&U\VWDO 1RWHVWR)LQDQFLDO6WDWHPHQWV 127(±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±'HFHPEHU ) 7RWDO23(%/LDELOLW\ 7KH&LW\ VWRWDO23(%OLDELOLW\RIZDVPHDVXUHGDVRI'HFHPEHUDQGZDV GHWHUPLQHGE\DQDFWXDULDOYDOXDWLRQDVRI-DQXDU\ 5.2(b) 82 City of Crystal Notes to Financial Statements NOTE 10 – POST EMPLOYMENT HEALTH CARE PLAN (CONTINUED) F. Total OPEB Liability (Continued) Changes in the total OPEB liability are as follows: Total OPEB Liability Balances at January 1, 2019 2,512,986$ Changes for the year Service cost 116,648 Interest 89,084 Changes of assumptions (161,829) Benefit payments (79,989) Net changes (36,086) Balances at December 31, 2019 2,476,900$ Changes of assumptions and other inputs reflect a change in the discount rate from 3.44% in 2017 to 4.09% in 2018. G. OPEB Liability Sensitivity The following presents the City's total OPEB liability calculated using the discount rate of 4.09% 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%) 2,251,605$ 2,476,900$ 2,731,304$ Total OPEB Liability/(Asset) 5.2(b) 83 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 2,823,924$ 2,476,900$ 2,184,616$ Total OPEB Liability/(Asset) (7.0% decreasing to 4.0%) (8.0% decreasing to 5.0%) (9.0% 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, 2019, the City recognized OPEB expense of $150,296. At December 31, 2019, the City reported deferred outflows of resources and deferred inflows of resources as shown below. Deferred Deferred Outflows of Inflows of Resources Resources Changes in Actuarial Assumptions 65,224$ 143,142$ Contributions made subsequent to the measurement date 46,542 - Total 111,766$ 143,142$ $46,542 reported as deferred outflows of resources resulting from contributions subsequent to the measurement date will be recognized as a reduction of the OPEB liability in the year ended December 31, 2020. Other amounts reported as deferred outflows of resources will be recognized in OPEB expense as follows: (8,894)$ (8,894) (8,894) (8,894) (8,894) (33,448) Total (77,918)$ 2020 2021 2022 2023 2024 Thereafter 5.2(b) &LW\RI&U\VWDO 1RWHVWR)LQDQFLDO6WDWHPHQWV 127(±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±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b) 85 City of Crystal Notes to Financial Statements NOTE 12 – RISK MANAGEMENT (CONTINUED) 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 2019. There were no significant reductions in insurance coverage during 2019. 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, 2019. 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 $75,000 if claims are open from more than one year. Changes in claims liability for 2019 and 2018 are as follows: Year Claims Liability Beginning of Year Current Year Claims and Changes in Estimates Payments on Claims Claims Liability End of Year 2018 15,000$ 15,365$ 6,865$ 23,500$ 2019 23,500 290,339 22,414 291,425 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. 5.2(b) 86 City of Crystal Notes to Financial Statements NOTE 13 – JOINT VENTURES AND JOINTLY GOVERNED ORGANIZATIONS (CONTINUED) A. Joint Ventures (Continued) 1. Golden Valley, Crystal, and New Hope Joint Water Commission (Continued) 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, 2019, is $4,621,447. Due to concurrent timing of the City's fiscal year end and audit of the JWC, the City reports its equity interest in the JWC with a one-year lag. The following financial information is from the JWC's audited financial statements for the year ended December 31, 2018: Total assets 17,402,659$ Total liabilities 662,889 Net position Net investment in capital assets 10,564,147 Restricted for capital improvements 3,520,717 Restricted for emergency water supply 1,700,000 Unrestricted 954,906 Total net position 16,739,770$ Total program expenses 7,820,254$ Total program revenues 8,238,368 Net program revenue 418,114 Total general revenues 226,398 Change in net position 644,512 Net position Beginning of year 16,095,258 End of year 16,739,770$ JWC audited financial statements are available from the City of Golden Valley, Finance Department, 7800 Golden Valley Road, Golden Valley, MN 55427. 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). 5.2(b) &LW\RI&U\VWDO 1RWHVWR)LQDQFLDO6WDWHPHQWV 127(±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b) &LW\RI&U\VWDO 1RWHVWR)LQDQFLDO6WDWHPHQWV 127(±-2,179(1785(6$1'-2,17/<*29(51('25*$1,=$7,216 &217,18(' $-RLQW9HQWXUHV&RQWLQXHG :HVW0HWUR)LUH5HVFXH'LVWULFW&RQWLQXHG 7KHDFWLYLWLHVRIWKH'LVWULFWZLOOFRQWLQXHWREHIXQGHGHQWLUHO\E\WKHFLWLHVRI&U\VWDODQG1HZ +RSHZLWKHDFKFLW\FRQWULEXWLQJLWVSURSRUWLRQDWHVKDUHRIWKHDQQXDORSHUDWLQJEXGJHWLQPRQWKO\ LQVWDOOPHQWV$FFRUGLQJWRDIRUPXODLQWKHDJUHHPHQWWKH&LW\ VVKDUHRIWKH'LVWULFW VRSHUDWLQJ EXGJHWLV $XGLWHGILQDQFLDOVWDWHPHQWVDUHDYDLODEOHIURP:HVW0HWUR)LUH5HVFXH'LVWULFW;\ORQ $YHQXH11HZ+RSH01 %-RLQWO\*RYHUQHG2UJDQL]DWLRQV /RFDO*RYHUQPHQW,QIRUPDWLRQ6\VWHPV$VVRFLDWLRQ/2*,6 7KH&LW\LVDPHPEHURI/2*,6DFRQVRUWLXPRI0LQQHVRWDJRYHUQPHQWHQWLWLHVWKDWSURYLGHV FRPSXWHUL]HGGDWDSURFHVVLQJDQGVXSSRUWVHUYLFHVWRLWVPHPEHUV/2*,6LVOHJDOO\VHSDUDWHIURP WKH&LW\WKH&LW\GRHVQRWDSSRLQWDYRWLQJPDMRULW\RIWKH%RDUGDQGLWLVILVFDOO\LQGHSHQGHQWRI WKH&LW\7KHDPRXQWSDLGWR/2*,6IRUVHUYLFHVUHFHLYHGLQZDVZKLFKZDV DOORFDWHGWRYDULRXVIXQGVEDVHGRQDSSOLFDWLRQXVDJH /2*,6,QVXUDQFH*URXS 7KLVJURXSSURYLGHVFRRSHUDWLYHSXUFKDVLQJRIKHDOWKDQGOLIHLQVXUDQFHEHQHILWVIRURYHU JRYHUQPHQWHQWLWLHV3D\PHQWVIRUWKLVJURXSDUHPDGHE\WKH&LW\WR+HDOWK3DUWQHUVDQGDUHGLUHFWHG WR/2*,6,QVXUDQFH*URXS 3HWV8QGHU3ROLFH6HFXULW\3836 7KH&LW\LVSDUW\WRDMRLQWSRZHUVDJUHHPHQWWRJHWKHUZLWKILYHRWKHUFLWLHVZKLFKFUHDWHGDQ RUJDQL]DWLRQWRSURYLGHIRUWKHHIILFLHQWDQGHFRQRPLFDOLPSRXQGPHQWRIDQLPDOVLQDMRLQWO\RZQHG DQGRSHUDWHGIDFLOLW\7KHDPRXQWSDLGWR3836IRUVHUYLFHVUHFHLYHGLQZDV %DVVHWW&UHHN:DWHUVKHG0DQDJHPHQW&RPPLVVLRQ%&:0& 7KH&LW\LVSDUW\WRDMRLQWSRZHUVDJUHHPHQWWRJHWKHUZLWKHLJKWRWKHUFLWLHVWKHSXUSRVHRIZKLFK LVWRSURYLGHIRUFRRSHUDWLYHSODQQLQJXVDJHDQGLPSURYHPHQWRIWKH%DVVHWW&UHHNZDWHUVKHG7KH DPRXQWSDLGWR%&:0&LQZDV 6KLQJOH&UHHN:DWHUVKHG0DQDJHPHQW&RPPLVVLRQ6&:0& 7KH&LW\LVSDUW\WRDMRLQWSRZHUVDJUHHPHQWWRJHWKHUZLWKHLJKWRWKHUFLWLHVZKLFKZDVFUHDWHGWR SURWHFWDQGPDQDJHWKHZDWHUUHVRXUFHVRIWKH6KLQJOH&UHHNZDWHUVKHG7KHDPRXQWSDLGWR 6&:0&LQZDV 5.2(b) 89 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 2019 was $334,843. 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, 2019, outstanding commitments for these multi-year projects total approximately $138,609. 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, 2019, will not have a material adverse effect on the financial condition of the City. NOTE 17 – CHANGE IN ACCOUNTING PRINCIPLE For the year ended December 31, 2019, the City implemented GASB Statement No. 84, Fiduciary Activities. No prior period adjustments were needed to the Fiduciary Funds as a result of the implementation. 5.2(b) 90 City of Crystal Notes to Financial Statements NOTE 18 – PRIOR PERIOD ADJUSTMENT For the year ended December 31, 2019, a prior period adjustment was required to adjust beginning net position for governmental activities to reflect changes in land held for resale of the EDA Special Revenue Fund related to property sold in 2018. This adjustment affected beginning net position for governmental activities in the amount of $295,000. NOTE 19 – SUBSEQUENT EVENT On March 13, 2020, a national emergency was declared for the COVID-19 outbreak in the United States of America. This event affects the economy and financial markets. The extent of the impact on the City may be both direct and indirect and will vary based on the duration of the outbreak and various other factors. An estimate of the financial effect on the City's financial statements at December 31, 2019, cannot be determined at this time. NOTE 20 – NEW STANDARDS ISSUED BUT NOT YET IMPLEMENTED GASB Statement No. 87, Leases establishes a single model for lease accounting based on the foundational principle that leases are financings of the right to use an underlying asset. Under this statement, a lessee is required to recognize a lease liability and an intangible right-to-use lease asset, and a lessor is required to recognize a lease receivable and a deferred inflow of resources, thereby enhancing the relevance and consistency of information about governments' leasing activities. This statement will be effective for the year ending December 31, 2020. 5.2(b) 91 REQUIRED SUPPLEMENTARY INFORMATION 5.2(b) December 31, December 31, 2018 2019 Total OPEB Liability Service cost 105,872$ 116,648$ Interest 89,846 89,084 Changes of assumptions 84,810 (161,829) Benefit payments (77,076) (79,989) Net change in total OPEB liability 203,452 (36,086) Beginning of year 2,309,534 2,512,986 End of year 2,512,986$ 2,476,900$ 6,600,000$ 6,800,000$ 38.1%36.4% Note: Schedule is intended to show ten year trend. Additional years will be reported as they become available. See notes to required supplementary information.92 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 5.2(b) December 31, December 31, 2018 2019 Actuarially determined contribution 77,076$ 79,989$ Contributions in relation to the actuarially determined contribution 77,076 79,989 Contribution deficiency (excess)-$ -$ 6,600,000$ 6,800,000$ 1.17% 1.18% Note: Schedule is intended to show ten year trend. Additional years will be reported as they become available. See nots to required supplementary information.93 Schedule of Employer Contributions - OPEB Covered-employee payroll Contributions as a percentage of covered-employee payroll City of Crystal 5.2(b) City's Covered Payroll 2019 0.0633% 3,499,715$ 108,829$ 3,608,544$ 4,481,387$ 78.09% 80.23% 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 2019 0.2804% 2,947,287$ 2,892,478$ 101.89% 89.26% 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. See notes to required supplementary information.94 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 Plan Fiduciary Net Position as a Percentage of the Total Pension Liability City of Crystal Schedule of City's Proportionate Share of Net Pension Liability General Employees Retirement Fund Last Ten Years 5.2(b) 2019 343,159$ 343,159$ -$ 4,575,453$ 7.50% 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% Note: Schedule is intended to show ten year trend. Additional years will be reported as they become available. 2019 531,629$ 531,629$ -$ 3,136,454$ 16.95% 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% Note: Schedule is intended to show ten year trend. Additional years will be reported as they become available. See notes to required supplementary information.95 Schedule of City Contributions - Public Employees Police and Fire Retirement Fund Fiscal Year Ending December 31, Statutorily Required Contribution Contributions in Relation to the Statutorily Required Contributions City's Covered Payroll Fiscal Year Ending December 31, Contributions as a Percentage of Covered Payroll Contribution Deficiency (Excess) Last Ten Years City of Crystal Schedule of City Contributions - General Employees Retirement Fund Last Ten Years Contribution Deficiency (Excess) Contributions in Relation to the Statutorily Required Contributions City's Covered Payroll Statutorily Required Contribution Contributions as a Percentage of Covered Payroll 5.2(b) 96 5.2(b) City of Crystal Notes to Required Supplementary Information 97 GENERAL EMPLOYEES FUND 2019 Changes Changes in Actuarial Assumptions x The mortality projection scale was changed from MP-2017 to MP-2018. Changes in Plan Provisions x The employer supplemental contribution was changed prospectively, decreasing from $31.0 million to $21.0 million per year. The State's special funding contribution was changed prospectively, requiring $16.0 million due per year through 2031. 2018 Changes Changes in Actuarial Assumptions x The mortality projection scale was changed from MP-2015 to MP-2017. x The assumed benefit increase was changed from 1.0% per year through 2044 and 2.5% per year thereafter to 1.25% per year. Changes in Plan Provisions x The augmentation adjustment in early retirement factors is eliminated over a five-year period starting July 1, 2019, resulting in actuarial equivalence after June 30, 2024. x Interest credited on member contributions decreased from 4.00% to 3.00%, beginning July 1, 2018. x Deferred augmentation was changed to 0.00%, effective January 1, 2019. Augmentation that has already accrued for deferred members will still apply. x Contribution stabilizer provisions were repealed. x Postretirement benefit increases were changed from 1.00% per year with a provision to increase to 2.50% upon attainment of 90.00% funding ratio to 50.00% of the Social Security Cost of Living Adjustment, not less than 1.00% and not more than 1.50%, beginning January 1, 2019. x For retirements on or after January 1, 2024, the first benefit increase is delayed until the retiree reaches normal retirement age; does not apply to Rule of 90 retirees, disability benefit recipients, or survivors. x Actuarial equivalent factors were updated to reflect revised mortality and interest assumptions. 2017 Changes Changes in Actuarial Assumptions x 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. x 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. Changes in Plan Provisions x The State's contribution for the Minneapolis Employees Retirement Fund equals $16,000,000 in 2017 and 2018, and $6,000,000 thereafter. 5.2(b) City of Crystal Notes to Required Supplementary Information 98 GENERAL EMPLOYEES FUND (CONTINUED) 2017 Changes (Continued) Changes in Plan Provisions (Continued) x The Employer Supplemental Contribution for the Minneapolis Employees Retirement Fund changed from $21,000,000 to $31,000,000 in calendar years 2019 to 2031. The State's contribution changed from $16,000,000 to $6,000,000 in calendar years 2019 to 2031. 2016 Changes Changes in Actuarial Assumptions x 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. x The assumed investment return was changed from 7.9% to 7.5%. The single discount rate was changed from 7.9% to 7.5%. x Other assumptions were changed pursuant to the experience study dated June 30, 2015. The assumed future salary increases, payroll growth, the inflation was decreased by 0.25% to 3.25% for payroll growth and 2.50% for inflation. 2015 Changes Changes in Actuarial Assumptions x 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. Changes in Plan Provisions x 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; the State's contribution of $6.0 million, which meets the special funding situation definition, was due September 2015. 5.2(b) City of Crystal Notes to Required Supplementary Information 99 POLICE AND FIRE FUND 2019 Changes Changes in Actuarial Assumptions x The mortality projection scale was changed from MP-2017 to MP-2018. 2018 Changes Changes in Actuarial Assumptions x The mortality projection scale was changed from MP-2016 to MP-2017. Changes in Plan Provisions x Postretirement benefit increases were changed to 1.00% for all years, with no trigger. x An end date of July 1, 2048 was added to the existing $9.0 million state contribution. x New annual state aid will equal $4.5 million in fiscal years 2019 and 2020, and $9.0 million thereafter until the plan reaches 100% funding, or July 1, 2048, if earlier. x Member contributions were changed from 10.80% to 11.30% of pay, effective January 1, 2019 and 11.80% of pay, effective January 1, 2020. x Employer contributions were changed from 16.20% to 16.95% of pay, effective January 1, 2019 and 17.70% of pay, effective January 1, 2020. x Interest credited on member contributions decreased from 4.00% to 3.00%, beginning July 1, 2018. x Deferred augmentation was changed to 0.00%, effective January 1, 2019. Augmentation that has already accrued for deferred members will still apply. x Actuarial equivalent factors were updated to reflect revised mortality and interest assumptions. 2017 Changes Changes in Actuarial Assumptions x 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. x Assumed rates of retirement were changed, resulting in fewer retirements. x 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. x 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. x 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. x Assumed percentage of married female members was decreased from 65% to 60%. x Assumed age difference was changed from separate assumptions for male members (wives assumed to be three years younger) and female members (husbands assumed to be four years older) to the assumption that males are two years older than females. 5.2(b) &LW\RI&U\VWDO 1RWHVWR5HTXLUHG6XSSOHPHQWDU\,QIRUPDWLRQ 32/,&($1'),5()81'&217,18(' &KDQJHV&RQWLQXHG &KDQJHVLQ$FWXDULDO$VVXPSWLRQV&RQWLQXHG x7KHDVVXPHGSHUFHQWDJHRIIHPDOHPHPEHUVHOHFWLQJ-RLQWDQG6XUYLYRUDQQXLWLHVZDVLQFUHDVHG x7KHDVVXPHGSRVWUHWLUHPHQWEHQHILWLQFUHDVHUDWHZDVFKDQJHGIURPIRUDOO\HDUVWRSHU \HDUWKURXJKDQGWKHUHDIWHU x7KHVLQJOHGLVFRXQWUDWHZDVFKDQJHGIURPSHUDQQXPWRSHUDQQXP &KDQJHV &KDQJHVLQ$FWXDULDO$VVXPSWLRQV x7KHDVVXPHGSRVWUHWLUHPHQWEHQHILWLQFUHDVHUDWHZDVFKDQJHGIURPSHU\HDUWKURXJK DQGWKHUHDIWHUWRSHU\HDUIRUDOOIXWXUH\HDUV x7KHDVVXPHGLQYHVWPHQWUHWXUQZDVFKDQJHGIURPWR7KHVLQJOHGLVFRXQWUDWH FKDQJHGIURPWR x7KHVLQJOHGLVFRXQWUDWHFKDQJHGIURPWR x7KHDVVXPHGIXWXUHVDODU\LQFUHDVHVSD\UROOJURZWKDQGLQIODWLRQZHUHGHFUHDVHGE\WR IRUSD\UROOJURZWKDQGIRULQIODWLRQ &KDQJHV &KDQJHVLQ$FWXDULDO$VVXPSWLRQV x7KHDVVXPHGSRVWUHWLUHPHQWEHQHILWLQFUHDVHUDWHZDVFKDQJHGIURPSHU\HDUWKURXJK DQGSHU\HDUWKHUHDIWHUWRSHU\HDUWKURXJKDQGSHU\HDUWKHUHDIWHU &KDQJHVLQ3ODQ3URYLVLRQV x7KHSRVWUHWLUHPHQWEHQHILWLQFUHDVHWREHSDLGDIWHUDWWDLQPHQWRIWKHIXQGLQJWKUHVKROGZDV FKDQJHGIURPLQIODWLRQXSWRWRDIL[HGUDWHRI 3267(03/2<0(17+($/7+&$5(3/$1 &KDQJHV &KDQJHVLQ$FWXDULDO$VVXPSWLRQV x7KHGLVFRXQWUDWHLQFUHDVHGIURPLQWRLQ 5.2(b) 101 SUPPLEMENTARY INFORMATION 5.2(b) 102 5.2(b) 103 City of Crystal Nonmajor Governmental Funds SPECIAL REVENUE FUNDS Special Revenue Funds are used to account for specific revenues that are restricted to expenditures for particular purposes. TIF Districts This fund accounts for activities of the City's tax increment financing (TIF) districts. The main financing sources include tax increment revenue, interest, and transfers from other funds. Special Projects This fund is used to account for miscellaneous grants as well as revenues and expenditures relating to DWI-forfeited vehicles. In addition, this fund is used to account for revenues and expenditures of funds donated for ongoing, city-specified projects that may otherwise not be accomplished due to lack of funding. CAPITAL PROJECTS FUNDS Capital Projects Funds are used to account for the acquisition and construction of major capital facilities of the City, with the exception of those financed by Proprietary Funds. Permanent Improvement Revolving This fund is used to account for the majority of the City's capital acquisitions and improvements, as they relate to operations of the City. Cable TV Equipment This fund is used to accumulate funds to pay for equipment and expenses related to TV broadcast of city council meetings. The main financing sources include grants and interest. Fleet Fund This fund is used to procure, maintain, and repair City vehicles and equipment. Information Technology Fund This fund is used to account for information technology equipment and related expenses of the City. City Buildings Fund This fund is used to account for major renovation and/or construction of City buildings. 5.2(b) TIF Districts Special Revenue Special Projects Total Assets Cash and investments 1,187,798$ 159,593$ 1,347,391$ Due from other governments - 6,840 6,840 Prepaid expenses - - - Total assets 1,187,798$ 166,433$ 1,354,231$ Liabilities Accounts payable 6,889$ 8,136$ 15,025$ Due to other governments - - - Total liabilities 6,889 8,136 15,025 Fund Balances Restricted 1,180,909 86,870 1,267,779 Committed - - - Assigned - 71,427 71,427 Total fund balances 1,180,909 158,297 1,339,206 Total liabilities, deferred inflow of resouces, and fund balances 1,187,798$ 166,433$ 1,354,231$ 104 December 31, 2019 Special Revenue City of Crystal Combining Balance Sheet - Nonmajor Governmental Funds 5.2(b) Cable TV Equipment Fleet Information Technology City Buildings Total Total Governmental Funds 195,376$ 2,850,257$ 624,207$ 4,223,721$ 7,893,561$ 9,240,952$ - - - - - 6,840 - - 1,295 - 1,295 1,295 195,376$ 2,850,257$ 625,502$ 4,223,721$ 7,894,856$ 9,249,087$ 13$ 157$ 11,924$ 68,308$ 80,402$ 95,427$ - - 48,739 - 48,739 48,739 13 157 60,663 68,308 129,141 144,166 - - - - - 1,267,779 195,363 2,850,100 564,839 4,155,413 7,765,715 7,765,715 - - - - - 71,427 195,363 2,850,100 564,839 4,155,413 7,765,715 9,104,921 195,376$ 2,850,257$ 625,502$ 4,223,721$ 7,894,856$ 9,249,087$ 105 Capital Projects 5.2(b) Capital Projects TIF Districts Special Revenue Special Projects Total Permanent Improvement Revolving Revenues Property taxes 284,027$ -$ 284,027$ -$ Intergovernmental - 30,975 30,975 - Charges for services - - - - Fine and forfeitures - 8,215 8,215 - Miscellaneous Interest 34,671 35 34,706 - Other - 74,627 74,627 - Total revenues 318,698 113,852 432,550 - Expenditures Current General government - 5,624 5,624 - Public safety - 75,883 75,883 - Recreation - 13,449 13,449 - Economic development 216,995 - 216,995 - Debt service Principal 215,357 - 215,357 - Interest and other charges 32,596 - 32,596 - Capital outlay - 857 857 - Total expenditures 464,948 95,813 560,761 - Excess of revenues over (under) expenditures (146,250) 18,039 (128,211) - Other Financing Sources (Uses) Proceeds from sale of capital asset - - - - Transfers in - 7,343 7,343 - Transfers out - - - (399,581) Total other financing sources (uses) - 7,343 7,343 (399,581) Net change in fund balances (146,250) 25,382 (120,868) (399,581) Fund Balances Beginning of year 1,327,159 132,915 1,460,074 399,581 End of year 1,180,909$ 158,297$ 1,339,206$ -$ 106 Special Revenue City of Crystal Combining Statement of Revenues, Expenditures, and Changes in Fund Balances - Nonmajor Governmental Funds Year Ended December 31, 2019 5.2(b) Cable TV Equipment Fleet Information Technology City Buildings Total Total Other Governmental Funds -$ 85,680$ 159,179$ 585,888$ 830,747$ 1,114,774$ 36,202 - - 556,757 592,959 623,934 1,227 - - - 1,227 1,227 - - - - - 8,215 - 5,085 79,106 8,314 118,959 211,464 246,170 - 854 - 10,804 11,658 86,285 42,514 165,640 167,493 1,272,408 1,648,055 2,080,605 68 902 1,608 236,428 239,006 244,630 - - - - - 75,883 - - - - - 13,449 - - - - - 216,995 - - - - - - 215,357 - - - - - 32,596 - 593,174 67,642 218,695 879,511 880,368 68 594,076 69,250 455,123 1,118,517 1,679,278 42,446 (428,436) 98,243 817,285 529,538 401,327 - 88,676 - - 88,676 88,676 - 399,581 - - 399,581 406,924 - - - - (399,581) (399,581) - 488,257 - - 88,676 96,019 42,446 59,821 98,243 817,285 618,214 497,346 152,917 2,790,279 466,596 3,338,128 7,147,501 8,607,575 195,363$ 2,850,100$ 564,839$ 4,155,413$ 7,765,715$ 9,104,921$ 107 Capital Projects 5.2(b) 108 5.2(b) Original Final Actual Amounts Revenues Property taxes 200,000$ 200,000$ 284,027$ 84,027$ Interest 12,000 12,000 34,671 22,671 Total revenues 212,000 212,000 318,698 106,698 Expenditures Current Community development 196,575 196,575 216,995 20,420 Debt service Principal - - 215,357 215,357 Interest and other charges 41,000 41,000 32,596 (8,404) Total expenditures 237,575 237,575 464,948 227,373 (25,575)$ (25,575)$ (146,250) (120,675)$ Fund Balance Beginning of year 1,327,159 End of year 1,180,909$ 109 Budgeted Amounts Variance with Final Budget City of Crystal Statement of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual TIF Districts - Special Revenue Year Ended December 31, 2019 5.2(b) City of Crystal Statement of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual Street Reconstruction - Capital Projects Year Ended December 31, 2019 Original Final Actual Amounts Revenues Property taxes 110,144$ 110,144$ 110,144$ -$ Special assessments - - 659,064 659,064 Intergovernmental 230,000 230,000 927,704 697,704 Charges for services - - 25,130 25,130 Investment income 74,136 74,136 224,077 149,941 Miscellaneous revenues - - (11,523) (11,523) Total revenues 414,280 414,280 1,934,596 1,520,316 Expenditures Public works - capital outlay 890,000 890,000 828,345 (61,655) Excess of revenues over (under) expenditures (475,720) (475,720) 1,106,251 1,581,971 Other Financing Sources Proceeds from Sale of Capital Asset - - 575 575 Net change in fund balances (475,720)$ (475,720)$ 1,106,826 1,582,546$ Fund Balance Beginning of year 5,672,092 End of year 6,778,918$ 110 Budgeted Amounts Variance with Final Budget 5.2(b) City of Crystal Statement of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual Police Equipment Revolving - Capital Projects Year Ended December 31, 2019 Original Final Actual Amounts Revenues Property taxes 154,938$ 154,938$ 154,938$ -$ Intergovernmental - - 1,901 1,901 Interest 29,373 29,373 82,933 53,560 Total revenues 184,311 184,311 239,772 55,461 Expenditures Current Public safety - - 1,795 1,795 Capital outlay 247,200 247,200 154,082 (93,118) Total expenditures 247,200 247,200 155,877 (91,323) Excess of revenues over (under) expenditures (62,889) (62,889) 83,895 146,784 Other Financing Sources Proceeds from sale of capital asset 15,000 15,000 19,428 4,428 Net change in fund balances (47,889)$ (47,889)$ 103,323 151,212$ Fund Balance Beginning of year 2,812,125 End of year 2,915,448$ 111 Budgeted Amounts Variance with Final Budget 5.2(b) 112 5.2(b) 113 STATISTICAL SECTION 5.2(b) 114 5.2(b) 115 City of Crystal Statistical Section (Unaudited) This part of the City of Crystal’s comprehensive annual financial report presents detailed information as a context for understanding what the information in the financial statements, note disclosures, and required supplementary information says about the City's overall financial health. Financial Trends These schedules contain trend information to help the reader understand how the government's financial performance and well-being have changed over time. Table 1 - Net Position by Component Table 2 - Changes in Net Position Table 3 - Fund Balances of Governmental Funds Table 4 - Changes in Fund Balances of Governmental Funds Revenue Capacity These schedules contain information to help the reader assess the government's most significant local revenue source, property taxes. Table 5 – Taxable and Estimated Market Values of Taxable Property Table 6 – Property Tax Rates – Direct and Overlapping Governments Table 7 - Principal Property Taxpayers Table 8 - Property Tax Levies and Collations Debt Capacity These schedules present information to help the reader assess the affordability of the government's current level of outstanding debt and the government's ability to issue additional debt in the future. Table 9 - Legal Debt Margin Information Table 10 - Ratios of Outstanding Debt by Type Table 11 - Ratios of General Bonded Debt Outstanding Table 12 - Direct and Overlapping Governmental Activities Debt Demographic and Economic Information These schedules offer demographic and economic indicators to help the reader understand the environment within which the government's financial activities take place. Table 13 - Demographic and Economic Statistics Table 14 – Principal Employers Table 15 - Full-Time City Government Employees by Function Table 16 – Operating Indicators by Function Table 17 – Capital Asset Statistics by Function 5.2(b) 2010 2011 2012 2013 Governmental Activities Net investment in capital assets 26,510,303$ 25,896,999$ 26,574,766$ 28,944,085$ Restricted 13,110,714 13,618,934 14,772,670 17,707,336 Unrestricted 39,847,074 43,259,125 43,950,199 43,687,744 Total governmental activities net position 79,468,091$ 82,775,058$ 85,297,635$ 90,339,165$ Business-Type Activities Net investment in capital assets 11,450,442$ 12,763,559$ 13,921,133$ 15,655,823$ Unrestricted 11,563,188 11,319,800 10,416,828 10,114,825 Total business-type activities net position 23,013,630$ 24,083,359$ 24,337,961$ 25,770,648$ Primary Government Net investment in capital assets 37,960,745$ 38,660,558$ 40,495,899$ 44,599,908$ Restricted 13,110,714 13,618,934 14,772,670 17,707,336 Unrestricted 51,410,262 54,578,925 54,367,027 53,802,569 Total primary government net position 102,481,721$ 106,858,417$ 109,635,596$ 116,109,813$ 116 City of Crystal Net Position By Component (Accrual Basis of Accounting) Last Ten Fiscal Years (unaudited) 5.2(b) Table 1 2014 2015 2016 2017 2018 2019 34,052,606$ 39,903,269$ 40,421,924$ 40,534,551$ 41,195,367$ 46,233,147$ 16,360,362 18,102,105 18,580,900 20,099,040 18,671,275 17,072,361 39,694,502 25,901,804 25,370,751 24,388,020 23,516,447 22,294,201 90,107,470$ 83,907,178$ 84,373,575$ 85,021,611$ 83,383,089$ 85,599,709$ 15,448,191$ 19,057,632$ 19,889,415$ 22,283,455$ 21,693,069$ 19,815,262$ 9,397,654 7,484,722 8,575,762 9,572,606 10,836,119 11,901,367 24,845,845$ 26,542,354$ 28,465,177$ 31,856,061$ 32,529,188$ 31,716,629$ 49,500,797$ 58,960,901$ 60,311,339$ 62,818,006$ 62,888,436$ 66,048,409$ 16,360,362 18,102,105 18,580,900 20,099,040 18,671,275 17,072,361 49,092,156 33,386,526 33,946,513 33,960,626 34,352,566 34,195,568 114,953,315$ 110,449,532$ 112,838,752$ 116,877,672$ 115,912,277$ 117,316,338$ 117 5.2(b) 2010 2011 2012 2013 Expenses Governmental activities General government 2,115,117$ 2,084,038$ 1,992,060$ 2,091,395$ Public safety 5,979,472 6,247,082 5,605,172 5,900,593 Public works 6,075,243 3,997,978 4,345,225 2,655,529 Parks and recreation 2,494,542 2,475,881 2,110,078 2,548,785 Community development 1,656,365 2,168,725 2,180,213 1,570,132 Interest on long-term debt 531,689 503,301 498,884 586,388 Total governmental activities expenses 18,852,428 17,477,005 16,731,632 15,352,822 Business-type activities Water 2,482,146$ 2,930,591$ 3,094,744$ 3,092,654$ Sanitary sewer 1,934,868 1,928,975 1,874,699 1,927,664 Storm drainage 501,194 600,371 782,897 760,372 Street lights 148,627 186,991 173,308 309,396 Recycling 322,072 331,918 329,106 329,131 Total business-type activities expenses 5,388,907 5,978,846 6,254,754 6,419,217 Total primary government expenses 24,241,335$ 23,455,851$ 22,986,386$ 21,772,039$ Program Revenues Governmental activities Charges for services General government 205,696$ 278,336$ 240,501$ 256,133$ Public safety 305,692 357,536 389,769 429,740 Public works 13,832 - - 9 Parks and recreation 447,166 437,259 463,259 500,561 Community development 848,120 668,666 665,503 902,000 Operating grants and contributions 854,645 1,140,876 1,164,000 667,622 Capital grants and contributions 2,977,318 5,750,178 6,008,708 6,877,723 Total governmental activities program revenues 5,652,469 8,632,851 8,931,740 9,633,788 Business-type activities Charges for services Water 2,607,834 2,549,324 2,790,363 2,637,830 Sanitary sewer 1,856,830 1,913,165 1,919,725 1,939,539 Storm drainage 648,338 653,009 676,265 717,005 Street lights 161,702 162,722 162,119 169,015 Recycling 324,935 334,654 335,214 334,162 Operating grants and contributions 171,337 375,631 336,103 414,534 Capital grants and contributions 71,385 938,060 1,695 1,319,522 Total business-type activities program revenues 5,842,361 6,926,565 6,221,484 7,531,607 Total primary government program revenues 11,494,830$ 15,559,416$ 15,153,224$ 17,165,395$ 118 City of Crystal Changes in Net Position (Accrual Basis of Accounting) Last Ten Fiscal Years (unaudited) 5.2(b) Table 2 2014 2015 2016 2017 2018 2019 2,767,171$ 2,646,651$ 3,226,278$ 2,964,731$ 3,435,708$ $4,523,764 6,085,801 6,438,462 7,685,700 7,546,777 7,250,306 7,585,509 5,034,894 5,132,260 6,511,486 4,224,253 4,285,522 4,479,566 2,622,407 2,816,220 2,759,211 3,128,275 3,299,792 3,093,691 1,358,486 1,287,427 1,174,426 1,616,752 1,159,700 1,398,666 529,448 555,121 563,308 541,919 518,975 462,218 18,398,207 18,876,141 21,920,409 20,022,707 19,950,003 21,543,414 3,928,301$ 4,131,931$ 3,047,910$ 2,970,228$ 3,105,611$ 3,094,824$ 1,931,725 1,995,561 2,169,072 2,144,581 2,486,143 2,164,837 662,419 883,284 903,884 809,169 759,180 1,539,162 169,664 151,305 155,056 174,479 152,301 151,732 324,105 324,393 324,496 324,853 335,310 334,947 7,016,214 7,486,474 6,600,418 6,423,310 6,838,545 7,285,502 25,414,421$ 26,362,615$ 28,520,827$ 26,446,017$ 26,788,548$ 28,828,916$ 354,802$ 228,357$ 320,899$ 279,603$ 243,710$ $177,914 438,328 412,016 411,592 380,498 346,501 318,706 303 - - - - - 465,769 483,741 515,056 513,457 541,486 552,388 1,739,829 761,469 767,755 796,152 1,255,396 1,169,663 595,463 634,881 728,449 659,450 699,638 761,960 2,613,480 5,533,872 7,393,250 7,473,350 2,337,789 2,146,495 6,207,974 8,054,336 10,137,001 10,102,510 5,424,520 5,127,126 2,601,186 2,962,818 3,076,263 3,138,317 3,265,849 3,707,733 2,020,522 2,079,431 2,193,599 2,300,866 2,578,065 2,446,851 760,884 809,067 867,598 1,058,549 1,174,131 1,226,403 181,720 186,125 191,261 195,122 195,324 194,950 334,101 334,493 334,926 340,250 340,410 342,336 388,648 1,669,332 1,859,532 680,740 547,760 2,560,212 11,612 - - - - - 6,298,673 8,041,266 8,523,179 7,713,844 8,101,539 10,478,485 12,506,647$ 16,095,602$ 18,660,180$ 17,816,354$ 13,526,059$ 15,605,611$ 119 5.2(b) 2010 2011 2012 2013 Net (Expense) Revenue Governmental activities (13,199,959)$ (8,844,154)$ (7,799,892)$ (5,719,034)$ Business-type activities 453,454 947,719 (33,270) 1,112,390 Total primary government net expense (12,746,505)$ (7,896,435)$ (7,833,162)$ (4,606,644)$ General Revenues and Other Changes in Net Position Governmental activities Property taxes 9,231,751$ 9,318,013$ 9,710,807$ 9,561,519$ Grants and contributions not restricted to specific programs 1,616,214 1,618,291 1,478,220 1,472,223 Unrestricted investment earnings 1,025,552 1,036,201 540,883 96,678 Gain on disposition of capital assets 21,072 38,413 45,139 47,080 Transfers 70,883 140,203 (177,580) (252,756) Total governmental activities 11,965,472 12,151,121 11,597,469 10,924,744 Business-type activities Unrestricted investment earnings 236,609 240,213 108,888 16,241 Gain on disposition of capital assets - 22,000 1,404 51,300 Transfers (70,883) (140,203) 177,580 252,756 Total business-type activities 165,726 122,010 287,872 320,297 Total primary government 12,131,198$ 12,273,131$ 11,885,341$ 11,245,041$ Change in Net Position Governmental activities (1,234,487)$ 3,306,967$ 3,797,577$ 5,205,710$ Business-type activities 619,180 1,069,729 254,602 1,432,687 Total primary government (615,307)$ 4,376,696$ 4,052,179$ 6,638,397$ 120 City of Crystal Changes in Net Position (Accrual Basis of Accounting) Last Ten Fiscal Years (unaudited) 5.2(b) Table 2 2014 2015 2016 2017 2018 2019 (12,190,233)$ (10,821,805)$ (11,783,408)$ (9,920,197)$ (14,525,483)$ (16,416,288)$ (717,541) 554,792 1,922,761 1,290,534 1,262,994 3,192,983 (12,907,774)$ (10,267,013)$ (9,860,647)$ (8,629,663)$ (13,262,489)$ (13,223,305)$ 9,621,212$ 9,670,252$ 9,955,391$ 10,469,019$ 11,193,252 11,619,642 1,664,043 1,701,220 1,712,591 1,753,898 1,850,588 2,038,452 350,648 303,263 445,296 302,344 542,106 969,103 48,900 27,706 82,795 91,114 231,971 146,270 273,735 (1,577,880) 53,732 (2,048,142) 502,049 4,154,441 11,958,538 10,124,561 12,249,805 10,568,233 14,319,966 18,927,908 66,473 53,517 47,353 42,244 98,002 148,899 - 12,500 6,441 9,964 - - (273,735) 1,577,880 (53,732) 2,048,142 (502,049) (4,154,441) (207,262) 1,643,897 62 2,100,350 (404,047) (4,005,542) 11,751,276$ 11,768,458$ 12,249,867$ 12,668,583$ 13,915,919$ 14,922,366$ (231,695)$ (697,244)$ 466,397$ 648,036$ (205,517)$ 2,511,620$ (924,803) 2,198,689 1,922,823 3,390,884 858,947 (812,559) (1,156,498)$ 1,501,445$ 2,389,220$ 4,038,920$ 653,430$ 1,699,061$ 121 5.2(b) 2010 2011 2012 2013 General Fund Nonspendable Inventory -$ -$ -$ -$ Committed Compensated absences - 869,801 882,942 840,514 Unreserved 7,613,583 - - - Unassigned - 6,645,169 6,514,525 6,862,599 Total general fund 7,613,583$ 7,514,970$ 7,397,467$ 7,703,113$ All Other Governmental Funds Reserved 5,383,786$ -$ -$ -$ Nonspendable Prepaid items - - - 78,455 Restricted Housing and redevelopment assistance - 2,468,311 1,595,856 1,593,243 Murl revolving fund - 29,775 32,852 35,651 Debt service - 3,831,273 4,405,942 5,440,681 10% lawful gambling contribution - 6,323 3,795 1,945 DWI-related enforcement, training and education - 38,188 41,723 59,357 Committed Housing and redevelopment assistance - 3,541,003 3,754,395 3,914,649 Capital outlay - city wide - 8,607,284 8,848,629 8,647,926 Capital outlay - replace and renovation of city bldgs.- 9,645,755 10,308,963 10,286,268 Capital outlay - street reconstruction - 4,028,317 2,463,377 2,261,153 Capital outlay - police equipment - 3,184,679 3,191,297 3,138,748 Capital outlay - cable TV equipment - - - - Capital outlay - fire equipment - 629,063 636,661 637,970 Capital outlay - street maintenance - 1,908,638 1,872,925 1,854,710 Capital outlay - fleet - - - - Capital outlay - information technology - - - - Capital outlay - park improvement - - - - Assigned Police department purposes - 7,138 32,058 18,531 Park and recreation department purposes - 33,275 25,805 26,718 Other purposes - 12,275 12,371 11,855 Unassigned - - - - Unreserved, reported in Special revenue funds 5,158,888 - - - Capital projects funds 25,553,862 - - - Total all other governmental funds 36,096,536$ 37,971,297$ 37,226,649$ 38,007,860$ Note: The City implemented GASB Statement No. 54 in 2011. Years prior to 2011 have not been restated. 122 City of Crystal Fund Balances of Governmental Funds (Modified Accrual Basis of Accounting) Last Ten Fiscal Years (unaudited) 5.2(b) Table 3 2014 2015 2016 2017 2018 2019 -$ 27,488$ 15,519$ 19,169$ 23,941$ 71,541$ 801,697 782,627 817,760 753,962 774,914 801,503 - - - - - - 6,594,097 6,382,810 6,220,496 6,119,325 6,181,591 6,123,392 7,395,794$ 7,192,925$ 7,053,775$ 6,892,456$ 6,980,446$ 6,996,436$ -$ -$ -$ -$ -$ -$ - 8,450 - - - - 1,655,414 1,703,927 1,783,870 1,768,695 1,327,159 1,180,909 39,519 - - - - - 5,528,971 6,437,512 5,750,342 5,312,296 6,079,365 6,080,972 445 - - - - - 55,399 40,626 32,375 27,824 58,991 86,870 3,974,329 4,247,836 4,215,316 3,846,024 3,931,334 2,443,836 8,632,632 8,498,360 8,357,889 8,211,949 399,581 - 6,964,198 - 105,509 644,615 3,338,128 4,155,413 2,347,934 2,074,645 2,132,454 2,718,992 5,672,092 6,778,918 3,122,050 3,126,443 3,108,331 2,870,691 2,812,125 2,915,448 - 35,487 72,531 111,450 152,917 195,363 643,352 648,635 585,905 212,683 1,932,904 - 1,251,683 1,420,778 1,590,262 1,696,974 - - - - - - 2,790,279 2,850,100 - - - - 466,596 564,839 - - - - - 1,405,831 14,873 22,453 40,631 40,631 40,631 71,427 24,686 23,684 20,729 20,729 20,729 - 8,060 9,042 7,755 12,564 12,564 - - (626,968) - - - - - - - - - - - - - - - - 34,263,545$ 27,670,910$ 27,803,899$ 27,496,117$ 29,035,395$ 28,729,926$ 123 5.2(b) 2010 2011 2012 2013 Revenues Property taxes 9,200,159$ 9,323,325$ 9,714,591$ 9,641,513$ Special assessments 2,102,306 2,718,038 3,540,032 3,467,243 Licenses, permits and inspections 666,542 674,693 670,162 843,741 Intergovernmental 3,043,371 3,944,380 2,508,451 3,046,762 Charges for sales and/or services 769,153 759,262 826,023 899,525 Administrative services provided to other funds 273,653 294,594 278,835 291,368 Fines and forfeitures 426,922 353,125 316,496 397,759 Interest 913,481 801,534 669,524 473,660 Net increase (decrease) in fair value of investments 84,828 206,953 (142,882) (379,426) Miscellaneous 484,731 379,636 450,274 502,878 Total revenues 17,965,146 19,455,540 18,831,506 19,185,023 Expenditures General government 2,019,487 1,898,990 2,030,717 2,158,164 Public safety 5,722,179 5,992,955 5,429,833 5,679,203 Public works 1,912,121 1,450,552 1,315,019 1,311,719 Parks and recreation 1,948,935 1,955,070 1,978,397 2,029,179 Community development 1,425,627 1,382,770 1,408,056 1,464,562 Capital outlay 4,112,480 4,528,799 7,052,365 7,327,877 Debt service - Principal 1,599,619 1,810,083 1,500,682 1,358,811 Interest and other fees 549,775 529,299 538,947 564,181 Total expenditures 19,290,223 19,548,518 21,254,016 21,893,696 Excess (Deficiency) of Revenues Over (Under) Expenditures (1,325,077) (92,978) (2,422,510) (2,708,673) Other Financing Sources (Uses) Issuance of bonds 1,000,222 1,705,000 2,635,000 3,630,000 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 58,626 Proceeds from sale of property and equipment 32,158 41,314 56,169 57,310 Discount on bonds issued - (17,391)- - Transfers in 1,135,907 1,646,572 2,865,486 895,350 Transfers out (1,095,407) (1,506,369) (2,791,827) (845,756) Total other financing sources (uses)1,131,381 1,869,126 2,835,359 3,795,530 Net Change in Fund Balances (193,696)$ 1,776,148$ 412,849$ 1,086,857$ Debt service as a percentage of noncapital expenditures 14%16%14%13% 124 City of Crystal Changes in Fund Balances of Governmental Funds (Modified Accrual Basis of Accounting) Last Ten Fiscal Years (unaudited) 5.2(b) Table 4 2014 2015 2016 2017 2018 2019 9,621,688$ 9,664,690$ 9,966,978$ 10,569,176$ 11,231,206$ 11,600,365$ 2,873,099 3,328,989 3,950,081 4,468,266 3,452,454 2,746,810 924,967 808,695 773,479 785,451 740,192 835,712 2,930,382 3,175,821 3,062,273 3,133,642 3,641,377 3,964,052 1,718,581 932,081 913,329 859,087 935,558 886,368 - - - - - - 405,546 355,566 322,009 359,917 251,732 296,200 331,758 291,400 245,865 259,657 511,542 949,195 9,442 4,825 59,015 - - - 111,496 409,295 1,046,909 354,302 595,766 406,221 18,926,959 18,971,362 20,339,938 20,789,498 21,359,827 21,684,923 2,198,872 2,289,245 2,517,924 2,639,028 2,580,042 2,479,514 5,692,868 5,841,029 6,143,480 6,589,235 7,028,892 7,412,980 2,246,292 1,327,418 2,077,476 1,455,074 1,391,736 1,411,680 2,081,162 2,229,890 2,240,202 2,379,532 2,546,771 2,792,663 1,252,952 1,197,652 1,108,920 1,279,318 1,548,967 1,112,371 7,209,039 14,022,519 7,124,563 9,829,622 3,255,645 4,651,350 2,275,042 1,379,264 2,481,027 1,968,341 1,587,269 1,915,357 554,063 536,202 591,516 551,467 548,573 508,618 23,510,290 28,823,219 24,285,108 26,691,617 20,487,895 22,284,533 (4,583,331) (9,851,857) (3,945,170) (5,902,119) 871,932 (599,610) - 2,550,000 3,330,000 4,665,000 - - - - - - - - - - - - - - - - - - - - - 92,777 99,664 273,843 - - 82,547 33,224 122,359 91,114 253,287 146,270 - - - - - - 2,347,933 931,436 673,132 1,944,997 10,580,478 2,015,785 (1,898,783) (551,084) (286,146) (1,541,936) (10,078,429) (1,556,924) 531,697 3,056,353 3,939,009 5,433,018 755,336 605,131 (4,051,634)$ (6,795,504)$ (6,161)$ (469,101)$ 1,627,268$ 5,521$ 17% 13% 18% 15% 12% 14% 125 5.2(b) Table 5TotalReal PropertyTotalDirect EstimatedFiscalCommercial PersonalTaxableTaxActualYearResidential Apartments Industrial PropertyMarket Value Rate Market Value2010 1,359,108,500$ 109,744,000$ 177,950,600$ 11,371,300$ 1,658,174,400$ 44.270 1,663,404,700$ 99.69 %2011 1,214,915,800 101,790,000 162,932,900 11,554,800 1,491,193,50048.764 1,496,063,900 99.672012 1,019,240,647 100,691,000 161,022,000 11,783,600 1,292,737,24752.929 1,457,765,100 88.862013864,841,494 100,076,440 159,257,200 12,586,700 1,136,761,83457.630 1,311,691,400 86.662014864,287,852 101,813,000 156,849,300 12,661,700 1,135,611,85256.015 1,440,635,800 78.832015 1,020,212,713 104,420,800 155,744,300 13,315,900 1,293,693,71350.498 1,484,886,100 87.122016 1,153,327,871 154,241,560 159,609,700 13,517,900 1,480,697,03153.207 1,620,984,300 91.352017 1,280,234,014 167,116,280 174,031,700 13,922,200 1,635,304,19450.360 1,767,035,000 92.552018 1,405,036,164 178,406,933 180,514,900 15,766,500 1,779,724,49750.416 1,782,801,500 99.832019 1,542,818,000 208,112,000 200,365,100 15,983,900 1,967,279,00048.771 1,919,021,800 102.51Source: Hennepin CountyCity of CrystalTaxable and Estimated Market Values of Taxable PropertyLast Ten Fiscal Years(unaudited)Total TaxableMarket Valueas a Percentof EstimatedActualMarket Value126 5.2(b) Property Tax Rates -Direct and Overlapping GovernmentsLast Ten Fiscal Years(unaudited)Table 6Total Total Crystal RobbinsdaleCityTax Debt Service ISD #281 TotalBasic G.O. Direct Robbinsdale Hennepin Special CapacityMarket Market OverlappingRate HRA Debt Service Tax Rate ISD #281 CountyDistricts * Tax Rate Value Rate Value Rate Tax Rate40.285 1.400 2.585 44.270 28.621 42.640 8.138 123.669 0.013 0.229 123.91144.529 1.418 2.817 48.764 34.387 45.840 9.172 138.163 0.014 0.231 138.40848.219 1.588 3.122 52.929 32.810 48.231 9.523 143.493 0.015 0.276 143.78452.520 1.480 3.630 57.630 32.347 49.461 10.089 149.527 0.016 0.297 149.84051.268 1.241 3.506 56.015 34.777 49.959 10.561 151.312 0.016 0.303 151.63149.100 1.398 0.000 50.498 33.226 46.398 9.785 139.907 0.015 0.285 140.20751.831 1.376 0.000 53.207 33.833 45.356 9.530 141.926 0.014 0.282 142.22248.949 1.411 0.000 50.360 31.612 44.087 9.319 135.378 0.013 0.250 135.64149.168 1.248 0.000 50.416 31.957 42.808 8.973 134.154 0.000 0.234 134.38847.553 1.218 0.000 48.771 29.909 41.861 8.550 129.091 0.000 0.266 129.357Note: 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 CountyFiscalCity Direct Tax Rates127 City of Crystal2019201820172016201520142013201220112010Year5.2(b) Table 7Tax TaxTaxpayer Type of Property Capacity * Rank Capacity * RankCrystal Shopping Center Assoc. Shopping Center$553,290 1 2.77 % $389,250 1 1.84 %Crystal Village Apartments, LLC Apartments 294,238 2 1.47 218,739 3 1.04Cedarwood Investors LLC Apartments 239,225 3 1.20 N/ACrystal Gallery Developers Shopping Center219,050 4 1.10 132,250 6 0.63Smith-Sturm Investment Co. Apartments 218,875 5 1.10 130,888 7 0.62Crystal Medical Building, LLC Office/clinic 191,250 6 0.96 N/AMinnesota Senior Living LLC-0005 Apartments 186,438 7 0.93 N/ATarget Corporation Department Store 159,250 8 0.80 179,250 4 0.85SuperValu, Inc. Grocery Store 155,330 9 0.78 161,250 5 0.76Crystal Leased HSG Assoc. Housing 154,865 10 0.78 N/ALanel Financial Group Apartments370,326 2 1.75Winpark One Two, LLC Industrial126,250 8 0.60Bass Lake Road Retail Assoc, LLP Apartments109,770 9 0.52HNN General Partnership Apartments99,250 10 0.47$2,371,811 11.89 % $1,917,223 9.08 %Total City of Crystal Tax Capacity $19,967,681 $21,129,667* Tax Capacity is computed by applying class rate percentages, specific to each type of property classification, against Taxable Market Value.Class rate percentages vary depending upon the type of property. The formulas and class rates for converting Taxable Market Value into TaxCapacity represent a basic element of the Minnesota property tax system and are subject to annual revisions by the State.Source: Hennepin County128 Capacity2019 2010City of CrystalPrincipal Property Taxpayers Current Year and Nine Years Ago(unaudited)Percentageof Total TaxCapacityPercentageof Total Tax5.2(b) Table 8Total DelinquentCurrent Percentage Delinquent Total Collections Outstanding Taxes asFiscal Tax Tax of LevyTaxTax as a % ofDelinquent a % ofYearLevyCollections CollectedCollections Collections Tax LevyTaxes Tax Levy20108,849,440$ 8,675,169$ 98.03 %174,271$ 8,849,440$ 100.00 %-$ 0.00 %20118,900,044 8,780,526 98.66119,518 8,900,044 100.000 0.0020129,258,402 9,139,252 98.71119,150 9,258,402 100.000 0.0020139,159,895 9,090,927 99.2568,968 9,159,895 100.000 0.0020149,217,153 9,144,399 99.2172,439 9,216,838 100.00315 0.0020159,288,837 9,217,089 99.2363,072 9,280,161 99.918,676 0.0920169,954,054 9,871,608 99.1778,912 9,950,520 99.963,534 0.04201710,606,338 10,538,868 99.3654,998 10,593,866 99.8812,472 0.12201811,172,069 11,093,852 99.3055,467 11,149,319 99.8022,750 0.20201911,343,132 11,272,127 99.3714,131 11,286,258 99.5056,874 0.50Source: City of Crystal Finance Department records129 City of CrystalProperty Tax Levies and CollectionsLast Ten Fiscal Years(unaudited)5.2(b) 2010 2011 2012 2013 2014 Taxable market value - amounts 1,491,193$ 1,292,737$ 1,136,761$ 1,135,611$ 1,293,694$ expressed in thousands Debt limit (3% of taxable market value)44,736,000$ 38,782,000$ 34,103,000$ 34,068,000$ 38,811,000$ Less debt applicable to debt limit Total bonded debt 12,310,891 12,282,995 13,518,886 15,926,532 13,740,062 Deductions - Tax increment bonds - - - - - Special assessment bonds 8,915,000 9,880,000 11,770,000 14,191,612 12,559,803 8,915,000 9,880,000 11,770,000 14,191,612 12,559,803 Total debt applicable to debt limit 3,395,891 2,402,995 1,748,886 1,734,920 1,180,259 Legal debt margin 41,340,109$ 36,379,005$ 32,354,114$ 32,333,080$ 37,630,741$ Total debt applicable to the debt limit as a percentage of the debt limit 7.6%6.2%5.1%5.1%3.0% Source: City of Crystal Finance Department records 130 City of Crystal Legal Debt Margin Information Last Ten Fiscal Years (unaudited) 5.2(b) Table 9 2015 2016 2017 2018 2019 1,339,237$ 1,482,067$ 1,637,892$ 1,637,892$ 1,967,279$ 40,177,000$ 44,462,000$ 49,137,000$ 49,137,000$ 59,018,000$ 15,099,795 15,900,940 19,068,514 17,700,339 15,970,984 - - - - - 14,083,544 15,050,000 18,600,000 17,260,000 15,560,000 14,083,544 15,050,000 18,600,000 17,260,000 15,560,000 1,016,251 850,940 468,514 440,339 410,984 39,160,749$ 43,611,060$ 48,668,486$ 48,696,661$ 58,607,016$ 2.5% 1.9% 1.0% 0.9% 0.7% 131 5.2(b) City of CrystalLast Ten Fiscal Years(unaudited)Table 10G.O. G.O.TaxSpecialG.O.TotalG.O.IncrementAssessmentNotesPrimaryPerBonds Bonds Bonds Payable GovernmentCapita3,395,891$ -$ 8,915,000$ 46,100$ 12,356,991$ 0.75 % 1.02 % 558$ 2,402,995 - 9,880,000 46,100 12,329,095 0.83 0.97 5561,741,221 - 11,768,751 35,081 13,545,053 1.05 1.03 6041,734,920 - 14,191,612 - 15,926,532 1.40 1.16 7031,180,259 - 12,559,803 - 13,740,062 1.21 0.96 6121,016,251 - 14,083,544 - 15,099,795 1.17 1.01 661850,940 - 15,281,867 - 16,132,807 1.09 1.05 706- - 19,068,514 - 19,068,514 1.17 1.17 832- - 17,700,339 - 17,700,339 0.99 1.07 760- - 15,970,984 - 15,970,984 0.81 0.87 649Sources: 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 yearsRatios of Outstanding Debt by TypeGovernmentalActivities132 201920182017201620152014201320122011Percentageof PersonalIncome2010FiscalYearPercentageof TaxableMarketValue5.2(b) Table 11 Less Amount Restricted G.O.for Debt Per Bonds Service Total Capita 3,395,891$ 272,312$ 3,123,579$ 0.19 % 141.01 2,402,995 282,456 2,120,539 0.14 95.66 1,741,221 291,284 1,449,937 0.11 64.68 1,734,920 294,217 1,440,703 0.13 63.62 1,180,259 455,740 724,519 0.06 32.29 1,016,251 456,775 559,476 0.04 24.48 850,940 298,069 552,871 0.04 24.19 - - - 0.00 0.00 - - - 0.00 0.00 - - - 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 133 2018 2019 Percentage of Taxable Market Value of Property Ratios of General Bonded Debt Outstanding City of Crystal Last Ten Fiscal Years (unaudited) Fiscal Year 2010 2011 2012 2013 2014 2015 2016 2017 5.2(b) City of Crystal Direct and Overlapping Governmental Activities Debt As of December 31, 2019 (unaudited) Table 12 Net General Obligation Amount Bonded Debt Applicable To Jurisdiction Outstanding Government Direct - City of Crystal 15,970,984$ 100.00 % 1,597,098,400$ Overlapping - Robbinsdale ISD #281 161,527,761 19.39 3,132,023,286 Hennepin County 983,232,996 1.07 1,052,059,306 Hennepin Suburban Park District 39,123,902 1.51 59,077,092 Hennepin Regional RR Authority 91,599,372 1.07 98,011,328 Metropolitan Council / Transit 142,583,705 0.55 78,421,038 1,418,067,736 4,419,592,050 Total 1,434,038,720$ 6,016,690,450$ * 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 134 Percentage Government * Applicable To 5.2(b) Table 13 Per Capita Total City District-Wide Personal Personal School Population Income Income Enrollment 22,151 54,949$ 1,217,175,299$ 11,662 9.3 % 22,168 57,476 1,274,127,968 11,734 8.2 22,417 58,898 1,320,316,466 11,720 5.9 22,645 60,601 1,372,309,645 11,827 5.2 22,436 63,901 1,433,682,836 11,821 4.3 22,852 65,231 1,490,658,812 12,690 3.7 22,855 67,427 1,541,044,085 12,630 3.7 22,929 71,067 1,629,495,243 12,011 3.4 23,287 74,698 1,739,492,326 11,957 2.8 24,591 74,698 1,836,898,518 12,553 3.4 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. 135 2018 2019 Unemployment Rate City of Crystal Demographic and Economic Statistics Last Ten Fiscal Years (unaudited) Fiscal Year 2010 2011 2012 2013 2014 2015 2016 2017 5.2(b) Table 14 Number of Number of Employer Employees Rank Employees Rank Volunteers of America - Crystal Care Center 200 1 5.10 % 183 2 4.90 % Target 185 2 4.72 200 1 5.35 Cub Foods 156 3 3.98 150 3 4.01 City of Crystal 101 4 2.58 101 4 2.70 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 1.61 Thrift-Way Supermarket 45 6 1.20 Featherlite Exhibits 25 7 0.67 Qwest (now CenturyLink)* 8 0.00 Wells Fargo Bank, N.A.* 9 0.00 Unknown ** 10 0.00 984 25.10 % 764 20.44 % Estimated total employment 3,922 3,737 * 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. 136 2019 2010 City of Crystal Prinicpal Employers Current Year and Nine Years Ago (unaudited) Percentage of Total City Employment Percentage of Total City Employment 5.2(b) Table 15Function 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019General Government 11111111111111 9 9 9Public Safety Police Officers 28 30 30 28 27 30 30 33 33 34Civilians6866544556Public Works Engineering 3333333333Maintenance 87888888811Parks and Recreation Park maintenance6666666667Recreation 5555556554Community Development 7766776777Utilities Water / Sanitary Sewer / Storm Drainage9989991010101083 86 83 82 81 83 84 86 86 91Source: City of Crystal Finance Department records137 City of CrystalFull-Time City Government Employees By Function Last Ten Fiscal Years(unaudited)5.2(b) 2009 2010 2011 2012 2013 2014 General Government Administration Employee recruitments 11 16 19 19 22 26 Licenses issued 1,069 1,057 1,159 1,262 1,333 1,294 Public Safety Police Calls for service 30,681 32,464 31,878 31,624 34,362 31,077 Citations issued 5,369 6,199 6,133 6,622 6,230 5,798 Criminal cases investigated 1,426 1,261 1,771 1,123 1,172 1,208 Total arrests 1,081 1,184 1,226 925 767 859 Animal control incidents 334 501 471 469 447 457 Dog licenses issued 344 315 287 219 258 298 Fire (West Metro Fire-Rescue District) Calls for service 1,451 1,641 1,349 1,448 1,663 1,514 Inspections, plan reviews and consultations 796 899 734 747 808 824 Public Works Miles of streets sealcoated 5 12 6 5 * * Miles of streets reconstructed 046605 Phase of 16-phase street project Phase 11 Phase 12 Phase 13 Phase 14 Parks and Recreation Recreation program participants 8,459 9,301 9,132 10,600 13,847 12,149 No. of teams in team sports 172 195 221 212 212 216 No. of participants in special events 4,040 4,647 4,142 3,897 5,425 4,542 No. of rental groups 228 208 185 229 218 201 No. of facility rentals ** ** ** ** ** ** Community Center permits 659 600 657 684 680 671 Pool attendance 35,681 33,220 31,127 30,009 28,042 28,092 Community Development Permit inspections 2,664 2,331 2,350 2,868 2,779 2,771 Code enforcement incidents 1,434 1,378 1,319 1,332 1,482 1,539 Rental housing - no. of licensed units 2,431 2,457 2,575 2,788 2,859 2,548 Point of sale inspections/re-inspections 416 424 385 468 442 404 Planning Commission applications 8 18 8 16 12 6 Utilities Water system Average residential consumption (million gallons / day) 1.45 Mg/d 1.33 Mg/d 1.46 Mg/d 1.34 Mg/d 1.26 Mg/d 1.22 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 138 City of Crystal Operating Indicators By Function Last Ten Fiscal Years (unaudited) Function 5.2(b) Table 16 2015 2016 2017 2019 17 20 15 23 1,323 954 840 850 30,860 27,296 32,863 30,216 5,771 4,710 4,465 2,588 1,372 1,362 1,525 217 926 826 906 756 509 391 303 245 278 223 195 2 1,573 1,922 1,856 840 746 880 691 428 *000 5500 Phase 15 Phase 16 11,082 11,623 13,615 19,277 249 228 246 232 5,382 4,690 6,292 5,039 ******** 711 1,022 970 755 862 957 776 884 26,769 27,098 30,350 26,631 2,430 2,835 2,704 3,262 1,514 1,405 1,317 1,583 2,915 2,831 2,715 2,702 13 13 *** *** 12 11 13 8 1.20 Mg/d 1.60 Mg/d 1.40 Mg/d 1.40 Mg/d 139 5.2(b) 2010 2011 2012 2013 2014 2015 Public Safety Police Number of stations 111111 Public Works Street maintenance Miles of city street 92 92 91 91 91 91 Parks and Recreation Recreation Number of park acres 243 244 253 253 253 253 Number of parks 28 28 28 28 28 28 Number of parks with playground apparatus 19 20 20 20 20 20 Number of tennis courts 13 13 12 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 15 15 10 Number of full-size soccer fields 122222 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)90 90 90 90 90 90 Number of service connections 7,885 7,888 7,803 7,812 7,817 7,830 Number of fire hydrants 809 819 820 821 821 823 Sewer system Miles of sanitary sewer 87 87 87 87 87 87 Number of service connections 7,910 7,911 7,821 7,827 7,837 7,845 Number of lift stations 777777 Storm drainage system Miles of storm sewer 64 64 66 74 76 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 140 Function City of Crystal Capital Asset Statistics By Function Last Ten Fiscal Years (unaudited) 5.2(b) Table 17 2016 2017 2018 2019 1111 90 90 90 88 263 263 261 261 27 27 26 26 19 19 19 19 7777 4333 3222 2222 3333 7755 7777 2221 1111 1111 1111 90 93 93 93 7,841 7,841 7,849 7,856 823 797 797 859 87 87 87 87 7,855 7,855 7,863 7,863 7777 77 65 65 65 1111 141 5.2(b) City of Crystal Hennepin County, Minnesota Minnesota Legal Compliance December 31, 2019 5.2(c) City of Crystal Table of Contents Minnesota Legal Compliance 1 5.2(c) 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, 2019, and the related notes to financial statements, and have issued our report thereon dated June 10, 2020. In connection with our audit, nothing came to our attention that caused us to believe that the City of Crystal failed to comply with the provisions of the contracting and bidding, deposits and investments, conflicts of interest, public indebtedness, claims and disbursements, miscellaneous provisions, and tax increment financing sections of the Minnesota Legal Compliance Audit Guide for Cities, promulgated by the State Auditor pursuant to Minnesota Statutes § 6.65. However, our audit was not directed primarily toward obtaining knowledge of such noncompliance. Accordingly, had we performed 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 10, 2020 5.2(c) 5160 WEST BROADWAY – SITE PLAN REVIEW APPLICATION PAGE 1 OF 4 __________________________________________________________________________ FROM: Dan Olson, City Planner __________________________________________________________________________ TO: Anne Norris, City Manager (for June 16 Meeting) DATE: June 11, 2020 RE: Consider approval of a site plan review request from Water Sports Investments LLC for a building addition at 5160 West Broadway A.BACKGROUND Water Sports Investments LLC, owner of the Midwest Water Sports property at 5160 West Broadway, is proposing to construct a building addition to the rear of the existing commercial building. The applicant is proposing that the existing building will continue to serve as an office showroom for water sports equipment, including boat sales, with the addition used to store boats owned by private parties and products for sale. The property is zoned Industrial and office showrooms and warehouses are permitted uses within that zoning district, but site plan review and approval is required for the building addition and site improvements. Notice of the June 8 public hearing was posted on the property and published in the Sun Post on May 28, mailed to owners within 500 feet (see attachment A), and posted to the Becker, Welcome Park, Twin Oaks, Forest, and Cavanagh Oaks neighborhoods on Nextdoor. At the June 8 Planning Commission meeting, the Commissi on recommended approval of the site plan, with no one from the public submitting comments. Attachments: A.Site location map showing mailed notification area B.Existing zoning map C.Property photos D.Project narrative submitted by applicant E.Site plan (12 sheets) COUNCIL STAFF REPORT Site plan review for 5160 West Broadway 5.3 5160 WEST BROADWAY – SITE PLAN REVIEW APPLICATION PAGE 2 OF 4 B. SITE PLAN REVIEW Existing use – The property is the site of a 24,000 square foot commercial building initially constructed in 1982 and operating as an office showroom for the sale of boats and equipment for waterskiing, wakeboarding and other water sports. The applicant also provides outdoor rental space behind the building for boats owned by private parties, during which time they are serviced by the applicant . The applicant also displays products for sale outdoors, such as boat trailers. Adjacent uses The following are the zoning districts and existing land uses surrounding this property:  North – zoned Industrial (Thomas Auto Body; vehicle impound lot)  East (across the BNSF rail corridor) – zoned Industrial (Kilmer Electric)  West (across West Broadway) – zoned Low Density Residential (cemetery)  South –zoned Industrial (Randy’s Booth Company) Proposed use - The applicant is proposing to construct an approximately 32,000 square foot addition on the rear of the building. This addition is proposed to enclose all of the boats owned by private parties and products for sale will no longer be displayed outdoors. If temporary outdoor display of products is desired in the future, the applicant can receive staff approval of a zoning certificate application. The following are the notable site plan elements for this addition:  Building setbacks and height. The proposed building addition meets setback requirements in the Industrial district. The addition will be 58’ tall, which meets the maximum height of 60’. Although the building is quite far from the Crystal airport, the applicant notified the Federal Aviation Administration (FAA) of the proposed building construction. The FAA has reviewed the proposed building plan and has given approval to the addition with no further action needed by the a pplicant.  Parking. The existing parking lot will be reduced in size to accommodate t he building addition, leaving 33 parking spaces to serve the proposed expanded building. This meets the minimum 23 spaces required by the UDC.  Stormwater management and erosion control measures. The city does not require a stormwater management plan when less than one acre is disturbed. The percentage of impervious surface on the property will decrease from 83% to 81% (the maximum coverage is 90% for the Industrial zoning district). During building construction, the city will require erosion control techniques to be used on -site including silt fences, rock construction entrances, and inlet protection.  Utilities. An existing storm water catch basin will be enclosed in the new building. As part of the project the structure will have a solid cover put on it with a gasket around the edge to prevent runoff from inside the building from entering the storm water system.  Access and circulation. Sheets A2.1 and A2.2 of attachment E show how boats will be delivered and placed within the addition. The city’s Public Works Director and the West Metro Fire Rescue District staff have reviewed this traffic circulation plan 5.3 5160 WEST BROADWAY – SITE PLAN REVIEW APPLICATION PAGE 3 OF 4 and found it adequate to meet vehicle movement into and withi n the site, including fire trucks.  Building elevations. The proposed major exterior building material is prefinished metal siding. These materials meet the city’s requirements. A color rending of the proposed building addition is attachment E.  Landscaping. Currently there are no trees on the property. The landscape plan shows the new tree species to be planted as hackberry, American linden, and accolade elm. The applicant proposes to plant two varieties of shrubs.  Screening. Trash and recycling receptacles will be stored within the building. Currently there is a chain link fence surrounding the back of the property, with barbed wire above, which is not an allowable fence material. The barbed wire serves to provide security for the boats stored o utdoors. Since the boats will now be stored indoors, staff recommends as a condition of site plan approval that the barbed wire be removed from the fence.  Exterior lighting. There are no existing light poles on the property and no new poles will be installed. New exterior wall lighting meets the city’s requirements.  Pedestrian connections. There is an existing sidewalk along West Broadway that allows for pedestrian connections to the building.  Signs. There is an existing pylon sign facing West Broadway. The applicant has indicated that no additional signage is proposed, but if that changes the applicant must receive sign permit approval before installing any new signage. C. Site plan review criteria The following are the relevant criteria for approval of site plans in City Code Section 510.17. 1. The site plan fully complies with all applicable requirements of the UDC. Findings: As outlined in section B, above, the proposed site plan meets UDC requirements. 2. The site plan adequately protects residential uses from the potential adverse effects of a non-residential use. Findings: There are no single-family residential properties in the vicinity of this property. 3. The site plan is consistent with the use and character of surrounding properties. Findings: The property has been an existing commercial or industrial use since at least 1982. The proposed addition is consistent with this character. 5.3 5160 WEST BROADWAY – SITE PLAN REVIEW APPLICATION PAGE 4 OF 4 4. The site plan provides safe conditions for pedestrians or motorists and prevents the dangerous arrangement of pedestrian and vehicular ways. Findings: The city’s Public Works Director and staff from the West Metro Fire Rescue District have reviewed the site’s traffic circulation plan and found it adequate to meet vehicle movement into and within the site, including fire trucks. An existing public sidewalk along West Broadway provides pedestrian connections for the area. D. REQUESTED ACTION At the June 8, 2020 Planning Commission meeting, the Commissio n recommended by a vote of 8 to 0 (one Commission was absent) that the City Council approve the site plan to construct a new building addition at 5160 West Broadwa y with the following conditions. 1. The development shall be constructed according to the site plan in attachment E. 2. Prior to the issuance of the building permit, the applicant shall: a. Sign a site improvement agreement with the city and provide an escrow to guarantee installation of the landscaping plan. b. Remove the barbed wire from the existing fence. If the site plan is approved, the applicant anticipates starting construction of the addition in Spring, 2021. City Council motion to approve the site plan review application is requested. 5.3 Site Location and Public Hearing Notice Mailing Map 5160 West Broadway Ave. 4141 Douglas Dr. N. Crystal MN 55422 Attachment A 5.3 Zoning Map 5160 West Broadway Ave. 4141 Douglas Dr. N. Crystal MN 55422 Attachment B 5.3 Portion of building facing West Broadway Attachment C 5.3 Trailers stored in the front of the building 5.3 South side of building 5.3 Boat storage at rear of property (location of proposed addition) 5.3 Boat storage at rear of property (location of proposed addition) 5.3 Boat storage at rear of property (location of proposed addition) 5.3 pg. 1 Narrative for Midwest Watersports Storage Addition 5160 West Broadway Crystal, MN May 26, 2020 The Parties Owner: Water Sports Investments Llc Architect: Edward Farr Architects, Inc. Civil Engineer & Landscape Architect HTPO, Inc. Site and Zoning Information Lot Area: 2.2 acres Zoning: I Industrial Min. Building Setbacks: Front = 10 ft, Rear = 10 ft, Side = 10 ft. (all setbacks met or exceeded) Min. Parking Setbacks: All yards = 5 ft. (no proposed new parking) Existing Building Size: approx. 24,235 sq ft Proposed Addition Size: approx. 32,254 sq ft Max. Building Height: lower of 60 ft or 5 stories Proposed Building Height: 58 ft, single story Min Greenspace Coverage 10% (no new impervious surface area added) Company Overview and Project Purpose Midwest Water Sports is a dealer and authorized service center for MasterCraft Boats with a focus on wake surfing, waterskiing, and Wakeboarding. They have the area’s largest selection of wakeboards, surf boards, water skis, and accessories. The company purchased the Crystal, MN building in 2004. An increase in demand for seasonal boat storage is the reason for the addition. There is currently outdoor boat storage in this same rear yard location. Vertical Boat Storage Racks are being purchased that allow stacking boats 4 rows high, thereby providing the additional capacity needed to satisfy market demand. The boat storage will now be fully enclosed, not an outside storage use anymore. No other building modifications are being proposed. Application Site Plan Review on 2.2 acres for a 32,254 sq ft (+/-) boat storage addition to the primary building. Facility Description and Design: The addition will be a single-story structure clad in pre-finished ribbed metal panels. The metal panels will be a soft light-toned neutral color to blend in with the existing building color for consistency and minimal visual impact. The existing building is constructed with light grey concrete block, using a split-face and fluted split face block textures, with a blue stripe accent. The height of the addition will be slightly lower than the maximum 60 ft allowed in this district. Attachment D 5.3 pg. 2 The addition meets all building setbacks. The front yard setback doesn’t change since the addition is in the rear yard; the addition is set back 194 ft from the West Broadway street exposure so it will be mainly out of view from the public way. The site and rear yard setbacks exceed the 10 foot minimum. No rooftop HVAC equipment is needed; all HVAC will be internal to the building. Clerestory windows have been placed along all exterior walls, 5 feet below the lowest point of the roof. This is to increase attractiveness of the business along with providing natural light into the addition. Vehicular circulation patterns in and out of the site will not change. In the fall, boats on trailers will be pulled straight into this storage building. The boat is lifted off its trailer by a hoist; then the driver makes a U-turn inside the building and exits through the same overhead door. There should be no reason to back into this building with the boat. In the spring, the customer can pull straight into the building with his empty trailer, have the hoist set the boat down on the trailer, make the U-turn again and pull out safely. On-site parking for customers and employees will continue to meet zoning ordinance requirements. There are 33 stalls remaining, including two accessible stalls. See below for parking calculations. Signage: No new signage is needed or proposed. Parking: The facility will continue to have enough parking to satisfy zoning requirements as well as their forecasted operations. Per ord. 520.15 Subd. 2 (b) (2), if a proposed expansion increases the floor area larger than 50%, then the entire site shall come into compliance. Per ord. 520.15 Subd. 6, Table 11, the minimum number of stalls for ‘Vehicle, Boat or Recreational Sales or Rental’ uses is 4 spaces plus 1 per employee, and any display. In that same Table 11, the minimum number of stalls for ‘Warehouse’ use is 4 spaces plus 1 per 3,000 sq ft. So, the minimum number of spaces is: Boat & Recreational Sales use = 4 + 8 (employees) = 12 stalls + Warehouse use = (32,254 sq ft / 3,000 sq ft) = 10.7, say 11 stalls Total Required = 23 stalls Total Provided = 33 stalls, ok Landscaping and Screening: Deciduous overstory trees along West Broadway and a mix of evergreen and deciduous landscape foundation plantings for the building expansion are included to satisfy landscaping code requirements. Foundation plantings along the existing building near West Broadway will remain. Sanitary Sewer and Storm Water: Sanitary sewer service does not change. Storm water currently discharges off site into the large pond across W. Broadway at 5100 Douglas Drive N. We are limiting our impervious surface area to pre-development conditions; however, the < 1 acre of disturbed area is being treated in accordance with storm water regulations of both the City of Crystal and Shingle Creek Watershed. The project is proposing to install a sump structure as well as reduce the amount of 5.3 pg. 3 impervious surface of the project site to improve the water quality and rate control of the site. A summary of those regulation requirements is attached in the stormwater management memo. Site Lighting: The existing site is lit via wall pack light fixtures on the south and west facades. We are relocating one wall pack light from the south façade to the new overhead door entry on the addition. See Site Lighting Plan. We are also installing a small exit light above the new exit door in the NE corner per building code. FAA Height limits to Crystal Airport: Application has been made to the FAA (filing # 2020-AGL-9321-OE) using FAA Form 7460-1 regarding the proximity to Crystal Airport. The property is approx. 4000 ft (3/4 mile) from the end of the runway. We have received informal approval from the FAA stating that our building height will be approved. They have asked for follow-up information regarding any temporary construction crane heights that may be taller than the building; we are in process of collecting that information and submitting to FAA. We will forward the FAA’s acceptance notice upon receipt. End of Narrative 5.3 ARCHITECT: EDWARD FARR ARCHITECTS 7710 GOLDEN TRIANGLE DRIVE EDEN PRAIRIE, MN 55344 CONTACT: ED FARR CIVIL ENGINEER: HTPO 7510 MARKET PLACE DRIVE EDEN PRAIRIE, MN 55344 CONTACT: AARON CARRELL OWNER: WATER SPORTS INVESTMENTS LLC 5160 W BROADWAY AVE CRYSTAL, MN 55429 CONTACT: ANDY LARSON LANDSCAPING: HTPO 7510 MARKET PLACE DRIVE EDEN PRAIRIE, MN 55344 CONTACT: SARAH HARDING Sheet Title Project Number Sheet Number Issued For Date Project Client Project Manager Date Reg. No. I hereby certified that this plan, specification or report was prepared by me or under my direct supervision and that I am a duly Licensed Architect under the laws of the State of Minnesota Edward A. Farr ©COPYRIGHT 2020 Location 5/26/2020 3:10:29 PMA0.020.011 COVER SHEET Date 16362 XXX MIDWEST WATER SPORTS EXPANSION 5160 W BROADWAY AVE, CRYSTAL MN 55429 5160 W BROADWAY CRYSTAL, MN MIDWEST WATER SPORTS EXPANSION PROGRESS 5/1/2020 SITE PLAN REVIEW 5/12/2020 CITY REVISIONS 5/26/2020 SHEET INDEX: A0.0 - COVER SHEET C - EXISTING CONDITIONS SURVEY C1.0 - SITE REMOVALS PLAN C1.1 - SITE PLAN C1.2 - GRADING PLAN C1.3 - STORM SEWER PLAN C1.4 - EROSION AND SEDIMENT CONTROL PLAN L1.0 - LANDSCAPE PLAN A2.1 - FLOOR PLAN A2.2 - ENLARGED EXPANSION PLAN A5.1 - EXTERIOR ELEVATIONS A6.1 - EXTERIOR LIGHTING PLAN Attachment E 5.3 A3 1\2 IPO A3 RLS 48177 A3 FND SPK A3 RLS 48177 STRM E / INLET 869.66 FFE= 874.11 FFE= 874.14 FFE= 874.18 FFE= 874.15 FFE= 874.15 FFE= 874.13 FFE= 874.14 FFE= 874.09 85.94205.35 14.00 280.97 85.9847.64 24.1 8 BURLINGTONNORTHERNRAILROADWE S T B RO ADW A Y EXISTING BUILDING 5160 W BROADWAY AVE 1 STORY EXISTING 1 STORY BUILDING 5170 W BROADWAY EXISTING 1 STORY BUILDING 5140 W BROADWAY AVE CONCRETE CON C R E T E CON C R E T E CONCRETE BITUMINOUS BITUMINOUS B I TUM INOU S BITUMINOUS GRAVELGRAVEL GRAVEL GRAVELCONCRETE GRASS GRASS GRASS GRASS CON C R E T E CON C R E T E CON C R E T E SMH Rim=873.93 Inv= 863.6 W SMH Rim=873.02 Inv= 863.6 W TNH= 875.72 TNH= 878.32 CB Rim=872.29 Inv= 868.1 W Inv= 868.8 SE CB Rim=872.90 Inv= 868.2 SE Inv= 867.7 W CB Rim=872.26 Inv= 869.1 W Inv= 869.3 E CB Rim=872.17 Inv= 868.9 W Inv= 868.7 E CB Rim=872.54 Inv= 869.8 W CB Rim=872.43 Inv= 869.7 W Inv= 869.9 E DRAINAGE & UTILITY EASEMENT PER PLAT OF CRYSTAL SECURITIES 2ND ADDITION This Area Contains Portable Structures and Storage CONCRETECONCRETE CONCRETE CONCRETE CONCRETE STOR A G E A R E A N89°40'21"W 562.80 S24°53'58"E203.54 S89°44'38"E 473.71 S 4 3 ° 1 5 ' 4 3 " E 2 5 5 . 0 3 DRAINAGE & UTILITY EASEMENT PER PLAT OF CRYSTAL SECURITIES 2ND ADDITION BENCHMARK #1 BENCHMARK #2 DATE ISSUES / REVISIONSNO.DESIGNDRAWN CHECKED JMB PAT USER: aoppenheimer XREF(s): 20-008-X-GEN-TBLK.dwg 20-008_X-CIV-SITE.dwgSCALE: 1 DATE/TIME: May 22, 2020 - 3:51pmFILE: C:\Users\aoppenheimer\appdata\local\temp\AcPublish_5392\20-008-X-SUR.dwg LAYOUT: Layout1LIC. NO.DATE: Surveyor 48087 03-31-2020 I hereby certify that this plan, specification or report was prepared by me or under my direct supervision and that I am a duly Licensed Land Surveyor under the laws of the State of Minnesota. Midwest Water Sports CRYSTAL, MN HANSEN T HORP PELLINEN OLSON,Inc. 7510 Market Place Drive Eden Prairie, MN 55344 952-829-0700 952-829-7806 fax Engineering Surveying Landscape Architecture PROJECT NO. 20-008 SHEET OF 1 HORIZONTAL EXISTING CONDITIONS SURVEY 1 03-31-2020 5-19-2020 JMB TLS Added drainage and utility easement to Lot 2 SECTION PROPERTY BOUNDARY PROPERTY LINE RIGHT OF WAY CENTER LINE EASEMENT SETBACK BUILDING PAVEMENT GRAVEL CONCRETE BITUMINOUS / ASPHALT FLOW LINE (FL) BACK OF CURB (TC) ROAD CENTER LINE PAVING STRIPES RAILROAD TRACKS CHAIN-LINK FENCE RETAINING WALL DRIP LINE ELECTRIC LINE OVERHEAD UTILITY GAS MAIN WATER MAIN SANITARY SEWER STORM SEWER STORM DRAINTILE SIGN HANDICAP SYMBOL BOLDARD AIR CONDITIONER POWER POLE GUYWIRE TRANSFORMER ELECTRIC BOX CABLE TV BOX TELEPHONE BOX GAS METER GAS VALVE HYDRANT PIV WATER METER WATER VALVE CURB STOP WATER MANHOLE CATCH BASIN BEEHIVE CATCH BASIN SANITARY MANHOLE POST FINISHED FLOOR ELEVATION TOP NUT OF HYDRANT CAST IRON PIPE CORRUGATED METAL PIPE CORRUGATED PLASTIC PIPE DUCTILE IRON PIPE HIGH-DENSITY POLYETHYLENE POLYVINYL CHLORIDE REINFORCED CONCRETE PIPE VITRIFIED CLAY PIPE VITRIFIED SEWER PIPE FOUND IRON MONUMENT FFE TNH CIP CMP CPP DIP HDPE PVC RCP VCP VSP LEGEND General Survey Notes 1. All distances are in US survey feet. 2. Bearings are based on the Hennepin County Coordinate System (NAD83-86 Adj). 3. This survey was prepared for the purpose of showing the existing conditions for site improvements. 4. Elevations are based on MN/DOT Geodetic Station CORVALI MN 053, which has an elevation of 877.666 feet (NAD83) and 2735 AG, witch has an elevation of 880.999 feet (NAD83). Benchmarks for the site are the top nut of hydrants (TNH): #1 North of site on the West side of West Broadway Avenue, which has an elevation of 875.72; #2 South of the site West of West Broadway Avenue, which has an elevation of 878.32. 5. The subsurface utility information in this plan is Utility Quality Level "C". This Utility Quality Level was determined according to the guidelines of CI-ASCE 38-02, entitled "Standard Guideline for the Collection and Depiction of Existing Subsurface Utility Data." 6. There may be easements of record that are not shown hereon. 7. Due to numerous portable items such as boats and storage items, there may be additional improvements that are not shown. VICINITY MAP nts DESCRIPTION OF PROPERTY SURVEYED Lot 1, Block 1, Crystal Securities 2nd Addition, according to the recorded plat thereof, Hennepin County, Minnesota. 5.3 A3 1\2 IPO A3 RLS 48177 A3 FND SPK A3 RLS 48177 STRM E / INLET 869.66 FFE= 874.11 FFE= 874.14 FFE= 874.18 FFE= 874.15 FFE= 874.15 FFE= 874.13 FFE= 874.14 FFE= 874.09 85.94205.35 14.00 280.97 85.9847.64 24.1 8 BURLINGTONNORTHERNRAILROADWE S T B RO ADW A Y EXISTING BUILDING 5160 W BROADWAY AVE 1 STORY EXISTING 1 STORY BUILDING 5170 W BROADWAY EXISTING 1 STORY BUILDING 5140 W BROADWAY AVE CONCRETE CO N C R E T E CON C R E T E CONCRETE BITUMINOUS BITUMINOUS B I TUM INOU S BITUMINOUS GRAVELGRAVEL GRAVEL GRAVELCONCRETE GRASS GRASS GRASS GRASS CON C R E T E CON C R E T E CON C R E T E SMH Rim=873.93 Inv= 863.6 W TNH= 875.72 CB Rim=872.29 Inv= 868.1 W Inv= 868.8 SE CB Rim=872.90 Inv= 868.2 SE Inv= 867.7 W CB Rim=872.26 Inv= 869.1 W Inv= 869.3 E CB Rim=872.17 Inv= 868.9 W Inv= 868.7 E CB Rim=872.54 Inv= 869.8 W CB Rim=872.43 Inv= 869.7 W Inv= 869.9 E This Area Contains Portable Structures and Storage CONCRETECONCRETE CONCRETE CONCRETE CONCRETE STOR A G E A R E A N89°40'21"W 562.80 S24°53'58"E203.54 S89°44'38"E 473.71 S 4 3 ° 1 5 ' 4 3 " E 2 5 5 . 0 3 BENCHMARK #1 REMOVE CONCRETE CURB AND GUTTER, TYP. REMOVE CONCRETE PAVEMENT, TYP. SAWCUT / MATCHLINE, TYP. PROTECT EXISTING STORM STRUCTURE PROTECT EXISTING STORM SEWERREMOVE STORM STRUCTURE REMOVE BITUMINOUS PAVEMENT, TYP. REMOVE BOLLARDS REMOVE PERIMETER FENCING ALONG SOUTH SIDE OF PROPERTY REMOVE GRAVEL REMOVAL OF PORTABLE STRUCTURES BY OTHERS PROPERTY LINE, TYP. DRAINAGE AND UTILITY EASEMENT, TYP. LEGEND REMOVE BITUMINOUS PAVEMENT REMOVE CONCRETE PAVEMENT REMOVE CONCRETE CURB AND GUTTER SAWCUT NOTES 1. ALL WORK AND MATERIALS SHALL BE IN ACCORDANCE WITH THE PROJECT MANUAL, APPLICABLE SECTIONS OF THE 2018 CITY ENGINEERS ASSOCIATION OF MINNESOTA (CEAM) STANDARD SPECIFICATIONS AND APPLICABLE SECTIONS OF THE 2018 MnDOT STANDARD SPECIFICATIONS FOR CONSTRUCTION. 2. CONTRACTOR SHALL DETERMINE LOCATION OF EXISTING PUBLIC AND PRIVATE UTILITIES PRIOR TO CONSTRUCTION AND SHALL BE RESPONSIBLE FOR PRESERVING THESE. ANY REPAIRS NECESSARY DUE TO THE CONTRACTORS OPERATIONS SHALL BE MADE AT THE CONTRACTORS EXPENSE. BEFORE DIGGING CALL: GOPHER STATE ONE CALL (651) 454-0002. 3. THE SUBSURFACE UTILITY INFORMATION IN THIS PLAN IS UTILITY QUALITY LEVEL "D". THIS UTILITY QUALITY LEVEL WAS DETERMINED ACCORDING TO THE GUIDELINES OF CI/ASCE 38-02, ENTITLED "STANDARD GUIDELINE FOR THE COLLECTION AND DEPICTION OF EXISTING SUBSURFACE UTILITY DATA." 4. EXISTING PAVEMENT AND CURB SHALL BE PRESERVED WHEREVER POSSIBLE. CREATE SMOOTH TRANSITIONS BETWEEN EXISTING AND NEW BITUMINOUS. ALL ASPHALT SHALL BE SAWCUT, NO JACKHAMMERING. 5. RESTORE ALL DISTURBED AREAS, INCLUDING PAVEMENT, TO EXISTING CONDITIONS OR BETTER. Sheet Title Project Number Sheet Number Issued For Date Project Client Civil Engineer Date Reg. No. Aaron Cameron ©COPYRIGHT 2020 Location 20.011 05/22/2020 56592 MIDWEST WATER SPORTS EXPANSION 5160 W BROADWAY AVE, CRYSTAL MN 55429 I hereby certify that this plan, specification or report was prepared by me or under my direct supervision and that I am a duly Licensed Professional Engineer under the laws of the State of Minnesota HANSEN THORP PELLINEN OLSON,Inc. 7510 Market Place Drive Eden Prairie, MN 55344 952-829-0700 952-829-7806 fax Engineering Surveying Landscape Architecture PROJECT NO. 20-008.1 SCALE IN FEET 0 30 60 90 USER: aoppenheimer XREF(s): 20-008_x-civ-locn.dwg 20-008-x-sur.dwg 20-008_X-ARC-SITE.dwg 20-008_X-CIV-SITE.dwg 20-008_X-GEN-TBLK.dwg 20-008_X-CIV-RMVL.dwg 20-008_X-ARC-TBLK.dwg CERT-ENG - ADC.dwgDATE/TIME: May 22, 2020 - 2:13pmFILE: P:\2020\20-008 - Midwest Water Sports - Crystal\CAD\DWG\PLANSHEETS\CIVIL\20-008_CIV-RMVL.dwg LAYOUT: 001Site Plan Application 05/22/2020 PRELIMINARY - NOT FOR CONSTRUCTION CALL BEFORE YOU DIG ! MINNESOTA LAW REQUIRES EXCAVATORS TO NOTIFY THE REGIONAL NOTIFICATION CENTER AT LEAST TWO (2) BUSINESS DAYS BUT NOT MORE THAN FOURTEEN (14) CALENDAR DAYS PRIOR TO EXCAVATION GOPHER STATE ONE CALL www.gopherstateonecall.org 1-800-252-1166 Minnesota SITE REMOVALS PLAN C1.0 5.3 A3 1\2 IPO A3 RLS 48177 A3 FND SPK A3 RLS 48177 FFE= 874.11 FFE= 874.14 FFE= 874.18 FFE= 874.15 FFE= 874.15 FFE= 874.13 FFE= 874.14 FFE= 874.09 85.94205.35 14.00 280.97 85.9847.64 24.1 8 BURLINGTONNORTHERNRAILROADWE S T B RO ADW A Y EXISTING BUILDING 5160 W BROADWAY AVE 1 STORY EXISTING 1 STORY BUILDING 5170 W BROADWAY EXISTING 1 STORY BUILDING 5140 W BROADWAY AVE CO N C R E T E CON C R E T E BITUMINOUS B I TUM INOU S BITUMINOUS GRAVELGRAVEL GRAVELCONCRETE GRASS GRASS GRASS CON C R E T E CON C R E T E CON C R E T E SMH Rim=873.93 Inv= 863.6 W TNH= 875.72 TNH= 878.32 CONCRETE CONCRETE CONCRETE CONCRETE BENCHMARK #1 BENCHMARK #2 D BITUMINOUS PAVEMENT, TYP. B612 CONCRETE CURB AND GUTTER, TYP. PARKING STRIPING, TYP. 9.0' TYP.20.7'TYP.26.5'R5.0 ' R10. 0' EXISTING PARKING STRIPING SHOWN FOR REFERENCE PURPOSES ONLY PROPOSED BUILDING EXPANSION SEE ARCH PLANS FOR MORE INFORMATION PROPERTY LINE, TYP. DRAINAGE AND UTILITY EASEMENT, TYP.10.9'14.1'10.0'6 3 17 10 LEGEND CONCRETE CURB AND GUTTER BITUMINOUS PAVEMENT BUILDING EXPANSION (SEE ARCH. PLANS FOR MORE INFORMATION) APPROXIMATE LIMITS OF CONSTRUCTION MATCHLINE PRELIMINARY - NOT FOR CONSTRUCTION CALL BEFORE YOU DIG ! MINNESOTA LAW REQUIRES EXCAVATORS TO NOTIFY THE REGIONAL NOTIFICATION CENTER AT LEAST TWO (2) BUSINESS DAYS BUT NOT MORE THAN FOURTEEN (14) CALENDAR DAYS PRIOR TO EXCAVATION GOPHER STATE ONE CALL www.gopherstateonecall.org 1-800-252-1166 Minnesota NOTES 1. ALL WORK AND MATERIALS SHALL BE IN ACCORDANCE WITH THE PROJECT MANUAL, APPLICABLE SECTIONS OF THE 2018 CITY ENGINEERS ASSOCIATION OF MINNESOTA (CEAM) STANDARD SPECIFICATIONS AND APPLICABLE SECTIONS OF THE 2018 MnDOT STANDARD SPECIFICATIONS FOR CONSTRUCTION. 2. CONTRACTOR SHALL DETERMINE LOCATION OF EXISTING PUBLIC AND PRIVATE UTILITIES PRIOR TO CONSTRUCTION AND SHALL BE RESPONSIBLE FOR PRESERVING THESE. ANY REPAIRS NECESSARY DUE TO THE CONTRACTORS OPERATIONS SHALL BE MADE AT THE CONTRACTORS EXPENSE. BEFORE DIGGING CALL: GOPHER STATE ONE CALL (651) 454-0002. 3. THE SUBSURFACE UTILITY INFORMATION IN THIS PLAN IS UTILITY QUALITY LEVEL "D". THIS UTILITY QUALITY LEVEL WAS DETERMINED ACCORDING TO THE GUIDELINES OF CI/ASCE 38-02, ENTITLED "STANDARD GUIDELINE FOR THE COLLECTION AND DEPICTION OF EXISTING SUBSURFACE UTILITY DATA." 4. EXISTING PAVEMENT AND CURB SHALL BE PRESERVED WHEREVER POSSIBLE. CREATE SMOOTH TRANSITIONS BETWEEN EXISTING AND NEW BITUMINOUS. ALL ASPHALT SHALL BE SAWCUT, NO JACKHAMMERING. 5. RESTORE ALL DISTURBED AREAS, INCLUDING PAVEMENT, TO EXISTING CONDITIONS OR BETTER. BENCHMARKS 1. BEARINGS ARE BASED ON THE HENNEPIN COUNTY COORDINATE SYSTEM, (NAD83-86 ADJ.) 2. ELEVATIONS ARE BASED ON MN/DOT GEODETIC STATION CORVALI MN 053, WHICH HAS AN ELEVATION OF 877.666 FEET (NAD83) AND 27356 AG, WHICH HAS AN ELEVATION OF 880.999 FEET (NAD 83). BENCHMARKS FOR THE SITE ARE THE TOP OF HYDRANTS (TNH): #1 NORTH OF SITE ON THE WEST SIDE OF WEST BROADWAY AVENUE, EL=875.72; #2 SOUTH OF THE SITE WEST OF WEST BROADWAY AVENUE, EL=878.32. SITE PLAN APPLICATION NOTES 1. ADDRESS: 5160 W BROADWAY AVE, CRYSTAL, MN 55429 2. LEGAL DESCRIPTION: LOT 1, BLOCK 1, CRYSTAL SECURITIES 2ND ADDITION, ACCORDING TO THE RECORDED PLAT THEROF, HENNEPIN COUNTY, MINNESOTA 3. ZONING CLASS: I - INDUSTRIAL DISTRICT 4. LOT AREA CALCULATION: 95,671 S.F (2.20 ACRES) 5. BUILDING HEIGHT: SEE ARCHITECT PLANS FOR INFORMATION ON BUILDING HEIGHT AND DIMENSIONS 6. EXISTING IMPERVIOUS COVERAGE PERCENTAGE = 82.8% PROPOSED IMPERVIOUS COVERAGE PERCENTAGE = 81.1% 7. LIMITS OF CONSTRUCTION (LOC) = 42,250 SF (0.97 AC) 8. EXISTING IMPERVIOUS WITHIN LOC = 35,285 SF (0.81 AC) PROPOSED IMPERVIOUS WITHIN LOC = 33,690 SF (0.77 AC) Sheet Title Project Number Sheet Number Issued For Date Project Client Civil Engineer Date Reg. No. Aaron Cameron ©COPYRIGHT 2020 Location 20.011 05/22/2020 56592 MIDWEST WATER SPORTS EXPANSION 5160 W BROADWAY AVE, CRYSTAL MN 55429 I hereby certify that this plan, specification or report was prepared by me or under my direct supervision and that I am a duly Licensed Professional Engineer under the laws of the State of Minnesota HANSEN THORP PELLINEN OLSON,Inc. 7510 Market Place Drive Eden Prairie, MN 55344 952-829-0700 952-829-7806 fax Engineering Surveying Landscape Architecture PROJECT NO. 20-008.1 SCALE IN FEET 0 30 60 90 USER: aoppenheimer XREF(s): 20-008_x-civ-locn.dwg 20-008-x-sur.dwg 20-008_X-ARC-SITE.dwg 20-008_X-CIV-SITE.dwg 20-008_X-CIV-STRM.dwg 20-008_X-GEN-TBLK.dwg 20-008_X-ARC-TBLK.dwg CERT-ENG - ADC.dwgDATE/TIME: May 22, 2020 - 2:13pmFILE: P:\2020\20-008 - Midwest Water Sports - Crystal\CAD\DWG\PLANSHEETS\CIVIL\20-008_CIV-SITE.dwg LAYOUT: 001Site Plan Application 05/22/2020 SITE PLAN C1.1 5.3 A3 1\2 IPO A3 RLS 48177 A3 FND SPK A3 RLS 48177 STRM E / INLET 869.66 FFE= 874.11 FFE= 874.14 FFE= 874.18 FFE= 874.15 FFE= 874.15 FFE= 874.13 FFE= 874.14 FFE= 874.09 BURLINGTONNORTHERNRAILROADWE S T B RO ADW A Y EXISTING BUILDING 5160 W BROADWAY AVE 1 STORY EXISTING 1 STORY BUILDING 5170 W BROADWAY EXISTING 1 STORY BUILDING 5140 W BROADWAY AVE SMH Rim=873.93 Inv= 863.6 W TNH= 875.72 TNH= 878.32 CB Rim=872.29 Inv= 868.1 W Inv= 868.8 SE CB Rim=872.90 Inv= 868.2 SE Inv= 867.7 W CB Rim=872.17 Inv= 868.9 W Inv= 868.7 E CB Rim=872.54 Inv= 869.8 W CB Rim=872.43 Inv= 869.7 W Inv= 869.9 E BENCHMARK #1 BENCHMARK #2 D 880.20 876.90874.75 876.75 881.35 (874.05) (871.40) (873.08) 872.80 (873.77) 872.80 872.90 872.95 876.00 877 8 8 1 8 8 0 7 9878 873 874875876(870.09) 77 877.10 877.20 GRADE SWALE AT BUILDING PERIMETER ALONG EAST AND SOUTH SIDES PROPOSED BUILDING EXPANSION FFE VARIES - SEE ARCH PLANS FOR MORE INFORMATION GUTTER OUT CURB PROPERTY LINE, TYP. DRAINAGE AND UTILITY EASEMENT, TYP. LEGEND PROPOSED CONTOUR SPOT ELEVATION SPOT ELEVATION (MATCH EXISTING) DRAINAGE FLOW NOTES 1. ALL WORK AND MATERIALS SHALL BE IN ACCORDANCE WITH THE PROJECT MANUAL, APPLICABLE SECTIONS OF THE 2018 CITY ENGINEERS ASSOCIATION OF MINNESOTA (CEAM) STANDARD SPECIFICATIONS AND APPLICABLE SECTIONS OF THE 2018 MnDOT STANDARD SPECIFICATIONS FOR CONSTRUCTION. 2. CONTRACTOR SHALL DETERMINE LOCATION OF EXISTING PUBLIC AND PRIVATE UTILITIES PRIOR TO CONSTRUCTION AND SHALL BE RESPONSIBLE FOR PRESERVING THESE. ANY REPAIRS NECESSARY DUE TO THE CONTRACTORS OPERATIONS SHALL BE MADE AT THE CONTRACTORS EXPENSE. BEFORE DIGGING CALL: GOPHER STATE ONE CALL (651) 454-0002. 3. THE SUBSURFACE UTILITY INFORMATION IN THIS PLAN IS UTILITY QUALITY LEVEL "D". THIS UTILITY QUALITY LEVEL WAS DETERMINED ACCORDING TO THE GUIDELINES OF CI/ASCE 38-02, ENTITLED "STANDARD GUIDELINE FOR THE COLLECTION AND DEPICTION OF EXISTING SUBSURFACE UTILITY DATA." 4. CONTRACTOR SHALL FIELD VERIFY EXISTING ELEVATIONS AND TOPOGRAPHY PRIOR TO COMMENCING GRADING OPERATIONS. IF DISCREPANCIES OCCUR BETWEEN EXISTING CONDITIONS SURVEY AND ACTUAL SITE CONDITIONS, NOTIFY ENGINEER IMMEDIATELY. 5. RESTORE ALL DISTURBED AREAS, INCLUDING PAVEMENT, TO EXISTING CONDITIONS OR BETTER. 6. ALL SPOT ELEVATIONS ARE TO TOP OF FINISHED GRADE OR GUTTERLINE ELEVATION UNLESS OTHERWISE SPECIFIED. BENCHMARKS 1. BEARINGS ARE BASED ON THE HENNEPIN COUNTY COORDINATE SYSTEM, (NAD83-86 ADJ.) 2. ELEVATIONS ARE BASED ON MN/DOT GEODETIC STATION CORVALI MN 053, WHICH HAS AN ELEVATION OF 877.666 FEET (NAD83) AND 27356 AG, WHICH HAS AN ELEVATION OF 880.999 FEET (NAD 83). BENCHMARKS FOR THE SITE ARE THE TOP OF HYDRANTS (TNH): #1 NORTH OF STIE ON THE WEST SIDE OF WEST BROADWAY AVENUE, EL=875.72; #2 SOUTH OF THE SITE WEST OF WEST BROADWAY AVENUE, EL=878.32. 872.80 (873.08) 875 Sheet Title Project Number Sheet Number Issued For Date Project Client Civil Engineer Date Reg. No. Aaron Cameron ©COPYRIGHT 2020 Location 20.011 05/22/2020 56592 MIDWEST WATER SPORTS EXPANSION 5160 W BROADWAY AVE, CRYSTAL MN 55429 I hereby certify that this plan, specification or report was prepared by me or under my direct supervision and that I am a duly Licensed Professional Engineer under the laws of the State of Minnesota HANSEN THORP PELLINEN OLSON,Inc. 7510 Market Place Drive Eden Prairie, MN 55344 952-829-0700 952-829-7806 fax Engineering Surveying Landscape Architecture PROJECT NO. 20-008.1 SCALE IN FEET 0 30 60 90 USER: aoppenheimer XREF(s): 20-008_x-civ-locn.dwg 20-008-x-sur.dwg 20-008_X-ARC-SITE.dwg 20-008_X-CIV-SITE.dwg 20-008_X-CIV-STRM.dwg 20-008_X-GEN-TBLK.dwg 20-008_X-CIV-GRAD.dwg 20-008_X-ARC-TBLK.dwg CERT-ENG - ADC.dwgDATE/TIME: May 22, 2020 - 2:13pmFILE: P:\2020\20-008 - Midwest Water Sports - Crystal\CAD\DWG\PLANSHEETS\CIVIL\20-008_CIV-GRAD.dwg LAYOUT: 001Site Plan Application 05/22/2020 PRELIMINARY - NOT FOR CONSTRUCTION CALL BEFORE YOU DIG ! MINNESOTA LAW REQUIRES EXCAVATORS TO NOTIFY THE REGIONAL NOTIFICATION CENTER AT LEAST TWO (2) BUSINESS DAYS BUT NOT MORE THAN FOURTEEN (14) CALENDAR DAYS PRIOR TO EXCAVATION GOPHER STATE ONE CALL www.gopherstateonecall.org 1-800-252-1166 Minnesota GRADING PLAN C1.2 5.3 A3 1\2 IPO A3 RLS 48177 A3 FND SPK A3 RLS 48177 STRM E / INLET 869.66 BURLINGTONNORTHERNRAILROADWE S T B RO ADW A Y BITUMINOUS B I TUM INOU S BITUMINOUS GRASS GRASS GRASS SMH Rim=873.93 Inv= 863.6 W TNH= 875.72 TNH= 878.32 CB Rim=872.29 Inv= 868.1 W Inv= 868.8 SE CB Rim=872.90 Inv= 868.2 SE Inv= 867.7 W CB Rim=872.17 Inv= 868.9 W Inv= 868.7 E CB Rim=872.54 Inv= 869.8 W CB Rim=872.43 Inv= 869.7 W Inv= 869.9 E BENCHMARK #1 BENCHMARK #2 D STMH #1 72"Ø RIM=872.26 INV=869.2 S INV=869.2 N,E (EX.) (VERIFY) INV=869.1 W (EX.) (VERIFY) SUMP=865.10 12" PVC SDR26 @ 1.0% CB #2 30" Ø DRAIN BASIN NYLOPLAST OR APPROVED EQUAL DOME GRATE RIM=876.20 INV=871.06 E INV=869.74 NW CB #3 24" Ø DRAIN BASIN NYLOPLAST OR APPROVED EQUAL DOME GRATE RIM=875.10 INV=869.77 CB #4 24" Ø DRAIN BASIN NYLOPLAST OR APPROVED EQUAL DOME GRATE RIM=877.10 INV=870.55 12" PVC SDR26 @ 1.0% 12" RCP CLV @ 0.5% PROPOSED BUILDING EXPANSION SEE ARCH PLANS FOR MORE INFORMATION EXISTING DRAINAGE INLET 12" STORM REMOVE EXISTING STRUCTURE AND CONSTRUCT NEW STMH OVER EXISTING STORM SEWER FIELD VERIFY LOCATION AND DEPTH ROOF DRAIN CONNECT TO CB #2, SEE MEP PLANS FOR MORE INFORMATION CONNECT TO EXISTING STORM STRUCTURE, REPLACE GRATE WITH SOLID COVER PROPERTY LINE, TYP. DRAINAGE AND UTILITY EASEMENT, TYP. PROPOSED LEGEND STORM STRUCTURE STORM SEWER D NOTES 1. ALL WORK AND MATERIALS SHALL BE IN ACCORDANCE WITH THE PROJECT MANUAL, APPLICABLE SECTIONS OF THE 2018 CITY ENGINEERS ASSOCIATION OF MINNESOTA (CEAM) STANDARD SPECIFICATIONS AND APPLICABLE SECTIONS OF THE 2018 MnDOT STANDARD SPECIFICATIONS FOR CONSTRUCTION. 2. CONTRACTOR SHALL DETERMINE LOCATION OF EXISTING PUBLIC AND PRIVATE UTILITIES PRIOR TO CONSTRUCTION AND SHALL BE RESPONSIBLE FOR PRESERVING THESE. ANY REPAIRS NECESSARY DUE TO THE CONTRACTORS OPERATIONS SHALL BE MADE AT THE CONTRACTORS EXPENSE. BEFORE DIGGING CALL: GOPHER STATE ONE CALL (651) 454-0002. 3. THE SUBSURFACE UTILITY INFORMATION IN THIS PLAN IS UTILITY QUALITY LEVEL "D". THIS UTILITY QUALITY LEVEL WAS DETERMINED ACCORDING TO THE GUIDELINES OF CI/ASCE 38-02, ENTITLED "STANDARD GUIDELINE FOR THE COLLECTION AND DEPICTION OF EXISTING SUBSURFACE UTILITY DATA." 4. CONTRACTOR SHALL FIELD VERIFY SIZE, LOCATION, AND ELEVATION OF EXISTING UTILITY CONNECTIONS AND BEGIN CONSTRUCTION AT THESE POINTS. THE ENGINEER SHALL BE NOTIFIED IMMEDIATELY OF ANY DISCREPANCIES BETWEEN THE PLAN AND EXISTING UTILITIES. NO CONSTRUCTION SHALL PROCEED UNTIL SUCH DISCREPANCIES ARE RESOLVED. 5. THE PROPOSED BUILDING EXPANSION PROJECT AREA IS LESS THAN 1 AC IN DISTURBANCE. PER SHINGLE CREEK WATERSHED MANAGEMENT COMMISSION, THE PROJECT HAS INCORPORATED PERMANENT WATER QUALITY BMP'S WITH A SUMP STRUCTURE. THE PROJECT DOES NOT TRIGGER QUALITY AND VOLUME REQUIREMENTS. THE DECREASE IN IMPERVIOUS SURFACE WILL DECREASE THE RUNOFF RATE FOR THE SITE FOR ALL RAIN EVENTS, AS REQUIRED BY CITY CODE. BENCHMARKS 1. BEARINGS ARE BASED ON THE HENNEPIN COUNTY COORDINATE SYSTEM, (NAD83-86 ADJ.) 2. ELEVATIONS ARE BASED ON MN/DOT GEODETIC STATION CORVALI MN 053, WHICH HAS AN ELEVATION OF 877.666 FEET (NAD83) AND 27356 AG, WHICH HAS AN ELEVATION OF 880.999 FEET (NAD 83). BENCHMARKS FOR THE SITE ARE THE TOP OF HYDRANTS (TNH): #1 NORTH OF STIE ON THE WEST SIDE OF WEST BROADWAY AVENUE, EL=875.72; #2 SOUTH OF THE SITE WEST OF WEST BROADWAY AVENUE, EL=878.32. Sheet Title Project Number Sheet Number Issued For Date Project Client Civil Engineer Date Reg. No. Aaron Cameron ©COPYRIGHT 2020 Location 20.011 05/22/2020 56592 MIDWEST WATER SPORTS EXPANSION 5160 W BROADWAY AVE, CRYSTAL MN 55429 I hereby certify that this plan, specification or report was prepared by me or under my direct supervision and that I am a duly Licensed Professional Engineer under the laws of the State of Minnesota HANSEN THORP PELLINEN OLSON,Inc. 7510 Market Place Drive Eden Prairie, MN 55344 952-829-0700 952-829-7806 fax Engineering Surveying Landscape Architecture PROJECT NO. 20-008.1 SCALE IN FEET 0 30 60 90 USER: aoppenheimer XREF(s): 20-008_x-civ-locn.dwg 20-008-x-sur.dwg 20-008_X-ARC-SITE.dwg 20-008_X-CIV-SITE.dwg 20-008_X-CIV-STRM.dwg 20-008_X-GEN-TBLK.dwg 20-008_X-ARC-TBLK.dwg CERT-ENG - ADC.dwgDATE/TIME: May 22, 2020 - 2:14pmFILE: P:\2020\20-008 - Midwest Water Sports - Crystal\CAD\DWG\PLANSHEETS\CIVIL\20-008_CIV-STRM.dwg LAYOUT: 001Site Plan Application 05/22/2020 PRELIMINARY - NOT FOR CONSTRUCTION CALL BEFORE YOU DIG ! MINNESOTA LAW REQUIRES EXCAVATORS TO NOTIFY THE REGIONAL NOTIFICATION CENTER AT LEAST TWO (2) BUSINESS DAYS BUT NOT MORE THAN FOURTEEN (14) CALENDAR DAYS PRIOR TO EXCAVATION GOPHER STATE ONE CALL www.gopherstateonecall.org 1-800-252-1166 Minnesota STORM SEWER PLAN C1.3 S EXISTING LEGEND STORM STRUCTURE STORM SEWER HYDRANT GATE VALVE WATERMAIN SANITARY MANHOLE SANITARY SEWER 5.3 A3 1\2 IPO A3 RLS 48177 A3 FND SPK A3 RLS 48177 STRM E / INLET 869.66 FFE= 874.11 FFE= 874.14 FFE= 874.18 FFE= 874.15 FFE= 874.15 FFE= 874.13 FFE= 874.14 FFE= 874.09 85.94205.35 14.00 280.97 85.9847.64 24.1 8 BURLINGTONNORTHERNRAILROADWE S T B RO ADW A Y EXISTING BUILDING 5160 W BROADWAY AVE 1 STORY EXISTING 1 STORY BUILDING 5170 W BROADWAY EXISTING 1 STORY BUILDING 5140 W BROADWAY AVE CO N C R E T E CON C R E T E BITUMINOUS B I TUM INOU S BITUMINOUS GRAVELGRAVEL GRAVELCONCRETE GRASS GRASS GRASS CON C R E T E CON C R E T E CON C R E T E SMH Rim=873.93 Inv= 863.6 W TNH= 875.72 CB Rim=872.29 Inv= 868.1 W Inv= 868.8 SE CB Rim=872.90 Inv= 868.2 SE Inv= 867.7 W CB Rim=872.17 Inv= 868.9 W Inv= 868.7 E CB Rim=872.54 Inv= 869.8 W CB Rim=872.43 Inv= 869.7 W Inv= 869.9 E CONCRETE CONCRETE CONCRETE CONCRETE BENCHMARK #1 D SW SEDIMENT CONTROL LOG AT 25' SPACING ALONG SWALE, TYP.INLET PROTECTION, TYP. INSTALL SEDIMENT CONTROL LOG AROUND BACK OF CURB AFTER CURB CONSTRUCTION, TYP. ROCK CONSTRUCTION ENTRANCE. ADJUST AS NEEDED DURING REMOVALS AND BUILDING CONSTRUCTION INSTALL INLET PROTECTION AT DOWNSTREAM CATCH BASIN STREET SWEEPING AS NEEDED OR DIRECTED BY ENGINEER AND/OR CITY INSTALL SILT FENCE AT LIMITS OF CONSTRUCTION OF NORTH PROPERTY LINE 877 8 8 1 8 8 0 7 9878 873 87487587677 PROPOSED BUILDING EXPANSION SEE ARCH PLANS FOR MORE INFORMATION EXISTING DRAINAGE INLET PROPERTY LINE, TYP. DRAINAGE AND UTILITY EASEMENT, TYP. LEGEND SEDIMENT CONTROL LOG / SILT FENCE INLET PROTECTION STREET SWEEPING ROCK CONSTRUCTION ENTRANCE DRAINAGE FLOW SW NOTES 1. INSTALL PERIMETER EROSION CONTROL AT THE LOCATIONS SHOWN ON THE PLANS PRIOR TO BEGINNING CONSTRUCTION. (HAY BALES ARE NOT AN ACCEPTABLE PERIMETER CONTROL). 2. BEFORE BEGINNING CONSTRUCTION, INSTALL A TEMPORARY ROCK CONSTRUCTION EXIT OR APPROVED EQUAL AT EACH POINT WHERE VEHICLES EXIT THE CONSTRUCTION SITE. EXTEND THE ROCK ENTRANCE AT LEAST 50 FEET INTO THE CONSTRUCTION ZONE. USE A GEOTEXTILE FABRIC BENEATH THE AGGREGATE IN ORDER TO PREVENT MIGRATION OF SOIL INTO THE ROCK FROM BELOW, UNLESS INSTALLED ON PAVEMENT. 3. REMOVE ALL SOILS AND SEDIMENTS TRACKED OR OTHERWISE DEPOSITED ONTO PUBLIC AND PRIVATE PAVEMENT AREAS. REMOVAL SHALL BE ON A DAILY BASIS WHEN TRACKING OCCURS. SWEEPING MAY BE ORDERED BY ENGINEER AT ANY TIME IF CONDITIONS WARRANT. SWEEPING SHALL BE MAINTAINED THROUGHOUT THE DURATION OF THE CONSTRUCTION AND DONE IN A MANNER TO PREVENT DUST BLOWN TO ADJACENT PROPERTIES. 4. INSTALL INLET PROTECTION AT ALL PUBLIC AND PRIVATE CATCH BASIN INLETS, WHICH RECEIVE RUNOFF FROM THE DISTURBED AREAS. CATCH BASIN INSERTS ARE REQUIRED IN UNDISTURBED AREAS THAT RECEIVE RUNOFF FROM DISTURBED AREAS. STAKED SILT FENCE OR OTHER APPROVED BMP'S IN DISTURBED AREAS NOT SUBJECT TO PUBLIC VEHICLE TRAFFIC MAY BE ACCEPTABLE. NOTE: HAY BALES OR FABRIC WRAPPING THE GRATES ARE NOT EFFECTIVE OR AN ACCEPTABLE FORM OF INLET PROTECTION. 5. LOCATE SOIL OR DIRT STOCKPILES NO LESS THAN 25 FEET FROM ANY PUBLIC OR PRIVATE ROADWAY OR DRAINAGE CHANNEL. IF REMAINING FOR MORE THAN SEVEN DAYS, STABILIZE THE STOCKPILES BY MULCHING, VEGETATIVE COVER, TARPS, OR OTHER MEANS. CONTROL EROSION FROM ALL STOCKPILES BY PLACING SILT FENCE BARRIERS AROUND THE PILES. TEMPORARY STOCKPILES LOCATED ON PAVED SURFACES MUST BE NO LESS THAN TWO FEET FROM THE DRAINAGE/GUTTER LINE AND SHALL BE COVERED IF LEFT MORE THAN 24 HOURS. 6. MAINTAIN ALL TEMPORARY EROSION AND SEDIMENT CONTROL DEVICES IN PLACE UNTIL THE CONTRIBUTING DRAINAGE AREA HAS BEEN STABILIZED. INSPECT TEMPORARY EROSION AND SEDIMENT CONTROL DEVICES ON A DAILY BASIS AND REPLACE DETERIORATED, DAMAGED, OR ROTTED EROSION CONTROL DEVICES IMMEDIATELY. 7. TEMPORARILY OR PERMANENTLY STABILIZE ALL DENUDED AREAS WHICH HAVE BEEN FINISH-GRADED, AND ALL DENUDED AREAS IN WHICH GRADING OR SITE BUILDING CONSTRUCTION OPERATIONS ARE NOT ACTIVELY UNDERWAY AGAINST EROSION DUE TO RAIN, WIND, AND RUNNING WATER WITHIN 7 DAYS. USE SEEDING AND MULCHING, EROSION CONTROL MATTING, AND/OR SODDING AND STAKING IN GREEN SPACE AREAS. USE EARLY APPLICATION OF GRAVEL BASE ON AREAS TO BE PAVED. 8. REMOVE ALL TEMPORARY SYNTHETIC, STRUCTURAL, NON-BIODEGRADABLE EROSION AND SEDIMENT CONTROL DEVICES AFTER THE SITE HAS UNDERGONE FINAL STABILIZATION AND PERMANENT VEGETATION HAS BEEN ESTABLISHED. MINIMUM VEGETATION ESTABLISHMENT IS 70% COVER. MAINTAIN ALL TEMPORARY EROSION CONTROL DEVICES UNTIL 70% ESTABLISHED COVER IS ACHIEVED. 9. READY MIXED CONCRETE AND CONCRETE BATCH PLANTS PROHIBITED WITHIN THE PUBLIC RIGHT OF WAY. DESIGNATE CONCRETE MIXING/WASHOUT LOCATIONS IN THE EROSION CONTROL PLAN. UNDER NO CIRCUMSTANCES MAY WASHOUT WATER DRAIN ONTO THE PUBLIC RIGHT OF WAY OR INTO THE PUBLIC STORM SEWER. 10. FOLLOWING INITIAL SOIL DISTURBANCE OR RE-DISTURBANCE, PERMANENT OR TEMPORARY STABILIZATION SHALL BE COMPLETED WITHIN SEVEN (7) CALENDAR DAYS ON ALL PERIMETER DIKES, SWALES, DITCHES, PERIMETER SLOPES, AND ALL SLOPES GREATER THAN 3 HORIZONTAL TO 1 VERTICAL (3:1); EMBANKMENT OF PONDS, BASINS, AND TRAPS; AND WITHIN FOURTEEN (14) DAYS ON ALL OTHER DISTURBED OR GRADED AREAS. THE REQUIREMENTS OF THIS SECTION DO NOT APPLY TO THOSE AREAS WHICH ARE SHOWN ON THE PLAN AND ARE CURRENTLY BEING USED FOR MATERIAL STORAGE OR FOR THOSE AREAS ON WHICH ACTUAL CONSTRUCTION ACTIVITIES ARE CURRENTLY BEING PERFORMED. 11. SEE LANDSCAPE PLAN FOR DETAILS ON TURF ESTABLISHMENT. 12. DEWATERING TURBID WATER SHALL NOT BE DIRECTLY DISCHARGED TO STORM SEWERS. ALL DEWATERING SHALL BE EFFECTIVELY TREATED BY A BMP PRIOR TO EXITING THE SITE. ALL DEWATERING SHALL CONFORM TO CITY OF CRYSTAL CITY CODE STANDARDS. 13. AREA OF LAND DISTURBANCE = 0.970 AC 14. CONTRACTOR TO REMOVE TEMPORARY SEDIMENT / EROSION CONTROL DEVICES AFTER PROJECT IS CONCLUDED AND PERMITS ARE CLOSED. Sheet Title Project Number Sheet Number Issued For Date Project Client Civil Engineer Date Reg. No. Aaron Cameron ©COPYRIGHT 2020 Location 20.011 05/22/2020 56592 MIDWEST WATER SPORTS EXPANSION 5160 W BROADWAY AVE, CRYSTAL MN 55429 I hereby certify that this plan, specification or report was prepared by me or under my direct supervision and that I am a duly Licensed Professional Engineer under the laws of the State of Minnesota HANSEN THORP PELLINEN OLSON,Inc. 7510 Market Place Drive Eden Prairie, MN 55344 952-829-0700 952-829-7806 fax Engineering Surveying Landscape Architecture PROJECT NO. 20-008.1 SCALE IN FEET 0 30 60 90 USER: aoppenheimer XREF(s): 20-008_x-civ-locn.dwg 20-008-x-sur.dwg 20-008_X-ARC-SITE.dwg 20-008_X-CIV-SITE.dwg 20-008_X-CIV-STRM.dwg 20-008_X-GEN-TBLK.dwg 20-008_X-CIV-EROS.dwg 20-008_X-CIV-GRAD.dwg 20-008_X-ARC-TBLK.dwg CERT-ENG - ADC.dwgDATE/TIME: May 22, 2020 - 2:14pmFILE: P:\2020\20-008 - Midwest Water Sports - Crystal\CAD\DWG\PLANSHEETS\CIVIL\20-008_CIV-EROS.dwg LAYOUT: 001Site Plan Application 05/22/2020 PRELIMINARY - NOT FOR CONSTRUCTION CALL BEFORE YOU DIG ! MINNESOTA LAW REQUIRES EXCAVATORS TO NOTIFY THE REGIONAL NOTIFICATION CENTER AT LEAST TWO (2) BUSINESS DAYS BUT NOT MORE THAN FOURTEEN (14) CALENDAR DAYS PRIOR TO EXCAVATION GOPHER STATE ONE CALL www.gopherstateonecall.org 1-800-252-1166 Minnesota EROSION AND SEDIMENT CONTROL PLAN C1.4 5.3 877 8 8 1 8 8 0 7 9878 873 87487587677 BURLINGTONNORTHERNRAILROADWE S T B RO ADW A Y EXISTING BUILDING 5160 W BROADWAY AVE 1 STORY EXISTING 1 STORY BUILDING 5170 W BROADWAY EXISTING 1 STORY BUILDING 5140 W BROADWAY AVE CO N C R E T E CON C R E T E BITUMINOUS B I TUM INOU S BITUMINOUS GRAVELGRAVEL GRAVELCONCRETECON C R E T E CON C R E T E CON C R E T E SMH Rim=873.93 Inv= 863.6 W TNH= 875.72 TNH= 878.32 CB Rim=872.29 Inv= 868.1 W Inv= 868.8 SE CB Rim=872.90 Inv= 868.2 SE Inv= 867.7 W CB Rim=872.17 Inv= 868.9 W Inv= 868.7 E CB Rim=872.54 Inv= 869.8 W CB Rim=872.43 Inv= 869.7 W Inv= 869.9 E CONCRETE CONCRETE CONCRETE CONCRETE BENCHMARK #1 BENCHMARK #2 D DL(6) DL(6) TO(5) TO(5) CO(1) UJ(3) CO(2) TA(3) SHOVEL-CUT EDGE SHOVEL-CUT EDGEPROPERTY LINE, TYP. DRAINAGE AND UTILITY EASEMENT, TYP. LEGEND SUN/SHADE TURF SEED MIX DECIDUOUS OVERSTORY TREE CONIFEROUS SHRUB DECIDUOUS SHRUB LANDSCAPE NOTES: 1. CONTRACTOR IS RESPONSIBLE FOR FINISH GRADING AND POSITIVE SURFACE DRAINAGE IN ALL LANDSCAPE AREAS. 2. ALL PLANT MATERIALS ARE TO CONFORM WITH STATE AND LOCAL CONSTRUCTION STANDARDS & THE CURRENT ADDITION OF THE AMERICAN ASSOCIATION OF NURSERYMEN STANDARDS. ALL PLANT MATERIALS ARE TO BE HEALTHY, HARDY STOCK, AND FREE FROM ANY DISEASES, DAMAGE, AND DISFIGURATION. 3. QUANTITIES OF PLANTS LISTED ON THE PLAN ARE TO GOVERN ANY DISCREPANCY BETWEEN THE QUANTITIES SHOWN ON THE PLANT SCHEDULE AND PLAN. PLACE PLANTS IN PROPER SPACING FOLLOWING LAYOUT FIGURES. 4. MAINTAIN (30) INCHES CLEARANCE AROUND PARKING STALLS TO ALLOW OVERHANG OF PARKED CARS. 5. APPLY FOUR (4) INCH DEPTH OF SHREDDED HARDWOOD BARK MULCH IN FOUR (4) FOOT DIAMETER RING AROUND ALL TREES IN TURF AREA. 6. APPLY PRE-EMERGENT TO MULCH IN PLANTING AREAS TO PROHIBIT WEED GROWTH, APPLICATION RATE TO BE PER MANUFACTURER'S RECOMMENDATIONS. IF WEEDS APPEAR IN TREATED AREAS DURING THE FIRST YEAR, LANDSCAPE CONTRACTOR TO REMOVE ALL WEEDS AT NO ADDITIONAL COST. 7. PLANTING SOIL FOR LANDSCAPED AREAS SHALL BE MINIMUM SIX (6) INCHES IN DEPTH. PLANTING SOIL SHALL BE WELL-GRADED SOIL, FRIABLE AND FERTILE, FREE OF HARDPACK SUBSOIL, STONES AND NOXIOUS WEEDS, AND HAVE A PH BETWEEN 6.5 AND 7.5. PLANTING SOIL TO BE A MIXTURE OF SELECTED TOPSOIL BORROW (MNDOT 3877 TYPE B) PEAT MOSS OR COMPOSTED YARD WASTE AND FERTILIZER, MIXING PROPORTIONS SHALL BE ACCORDING TO LOOSE VOLUME RATIO AND HAVE A COMPOSITE ORGANIC CONTENT AT NO LESS THAN 15% AND NO GREATER THAN 20%. FERTILIZER SHALL BE SLOW RELEASE COMMERCIAL FERTILIZER AND ADDED IN SUFFICIENT QUANTITY TO PROVIDE 0.05 POUND OF TOTAL NITROGEN PER CUBIC YARD OF PLANTING SOIL. 8. FOLLOW LANDSCAPE DETAILS FOR ALL INSTALLATION, UNLESS OTHERWISE NOTED. 9. LANDSCAPE CONTRACTOR TO MAINTAIN PLANTS AND SOD IN HEALTHY CONDITION THROUGHOUT ONE YEAR WARRANTY PERIOD. THE WARRANTY PERIOD SHALL BEGIN UPON INSPECTION AND ACCEPTANCE BY CITY STAFF. 10. ALL LANDSCAPE PLANTING BEDS TO RECEIVE 3-4" MULCH COVER. 11. FOR EROSION AND SEDIMENT CONTROL, REFER TO CIVIL PLANS. PLANT SCHEDULE: Sheet Title Project Number Sheet Number Issued For Date Project Client Date Reg. No. ©COPYRIGHT 2020 Location 20.011 05/22/2020 MIDWEST WATER SPORTS EXPANSION 5160 W BROADWAY AVE, CRYSTAL MN 55429 HANSEN THORP PELLINEN OLSON,Inc. 7510 Market Place Drive Eden Prairie, MN 55344 952-829-0700 952-829-7806 fax Engineering Surveying Landscape Architecture PROJECT NO. 20-008.1 SCALE IN FEET 0 30 60 90 Landscape Architect Sarah Harding 45592 I hereby certify that this plan, specification or report was prepared by me or under my direct supervision and that I am a duly Licensed Landscape Architect under the laws of the State of Minnesota USER: aoppenheimer XREF(s): 20-008_x-civ-locn.dwg 20-008-x-sur.dwg 20-008_X-ARC-SITE.dwg 20-008_X-CIV-SITE.dwg 20-008_X-CIV-STRM.dwg 20-008_X-GEN-TBLK.dwg 20-008_X-LAN.dwg 20-008_X-ARC-TBLK.dwg 20-008_X-CIV-GRAD.dwg CERT-ENG - ADC.dwgDATE/TIME: May 22, 2020 - 2:14pmFILE: P:\2020\20-008 - Midwest Water Sports - Crystal\CAD\DWG\PLANSHEETS\CIVIL\20-008_LAN-PLN.dwg LAYOUT: 001Site Plan Application 05/22/2020 PRELIMINARY - NOT FOR CONSTRUCTION CALL BEFORE YOU DIG ! MINNESOTA LAW REQUIRES EXCAVATORS TO NOTIFY THE REGIONAL NOTIFICATION CENTER AT LEAST TWO (2) BUSINESS DAYS BUT NOT MORE THAN FOURTEEN (14) CALENDAR DAYS PRIOR TO EXCAVATION GOPHER STATE ONE CALL www.gopherstateonecall.org 1-800-252-1166 Minnesota LANDSCAPE PLAN L1.0 SYMBOL COMMON NAME BOTANICAL NAME QTY.CONT. SPACING NOTES EVERGREEN TREES + SHRUBS TO EMERALD ARBORVITAE THUJA OCCIDENTALIS 'SMARAGD'10 #15 CONT.15'H x 3-4'W DECIDUOUS OVERSTORY TREES + SHRUBS CO HACKBERRY CELTIS OCCIDENTALIS 3 3" BB 50-75'H x 50'W TA AMERICAN LINDEN TILIA AMERICANA 3 3" BB 40-50'H 40'W UJ ACCOLADE ELM ULMUS JAPONICA X WILSONIANA 'MORTON' 3 3" BB 70'H x 40-50'W DL DWARF BUSH HONEYSUCKLE DIERVILLA LONICERA 12 #5 CONT. 4' OC 3-4'H x 3'W 5.3 1 2 3 4 A B C.1 E F G.1 H J K L M N P Q R S C D E.1 G 31' - 2"23' - 8"31' - 2"20' - 6" 17' - 0" 17' - 0" 17' - 0" 17' - 0" 7' - 6" 17' - 0" 17' - 0" 17' - 0" 17' - 0" 12' - 0"30' - 0"25' - 0"25' - 0"25' - 0" 20' - 6" 7' - 6" 17' - 0" 17' - 0" 17' - 0" 17' - 0" 17' - 0"O.H. DOOREXISTING BUILDING BOATRACKBOATRACKBOATRACKBOATRACKBOATRACKBOATRACKBOATRACKBOATRACKBOATRACKBOATRACKBOATRACKBOATRACKBOAT RACK BOAT RACK BOAT RACK BOAT RACK BOAT RACK BOAT RACK BOAT RACK BOAT RACK BOAT RACK BOATRACKBOATRACKBOATRACKBOATRACKBOATRACKBOATRACKBOATRACKBOATRACKBOATRACKBOATRACKBOATRACKBOATRACKBOATRACKBOATRACKBOAT RACK BOAT RACK SERVICE AND PARTS EXISTING STORAGE AND MAINTENANCE OFFICESRESTROOMS COLUMN CENTERLINES OVERHEAD CRANE RAIL 99' - 7 3/4"30' - 10 7/8"248' - 1 1/8"82' - 5 3/4"SHOWROOM 32,254 SQ FT BOAT STORAGE ADDITION Sheet Title Project Number Sheet Number Issued For Date Project Client Project Manager Date Reg. No. I hereby certified that this plan, specification or report was prepared by me or under my direct supervision and that I am a duly Licensed Architect under the laws of the State of Minnesota Edward A. Farr ©COPYRIGHT 2020 Location 5/26/2020 3:10:31 PMA2.120.011 FLOOR PLAN Date 16362 XXX MIDWEST WATER SPORTS EXPANSION 5160 W BROADWAY AVE, CRYSTAL MN 55429 SCALE:1" = 20'-0"A2.1 1 FLOOR 1 OVERALL SITE PLAN REVIEW 5/12/2020 N 5.3 BOATRACKBOATRACKBOATRACKBOATRACKBOATRACKBOATRACKBOATRACKBOATRACKBOATRACKBOATRACKBOATRACKBOATRACKBOAT RACK BOAT RACK BOAT RACK BOAT RACK BOAT RACK BOAT RACK BOAT RACK BOAT RACK BOAT RACK BOATRACKBOATRACKBOATRACKBOATRACKBOATRACKBOATRACKBOATRACKBOATRACKBOATRACKBOATRACKBOATRACKBOATRACKBOATRACKBOATRACKBOAT RACK BOAT RACK FORKLIFT WITH 20' BOAT PICKUP TRUCK HAULING BOAT WITHIN A 45' TURNING RADIUS COLUMN CENTERLINES OVERHEAD CRANE RAIL Sheet Title Project Number Sheet Number Issued For Date Project Client Project Manager Date Reg. No. I hereby certified that this plan, specification or report was prepared by me or under my direct supervision and that I am a duly Licensed Architect under the laws of the State of Minnesota Edward A. Farr ©COPYRIGHT 2020 Location 5/26/2020 3:10:32 PMA2.220.011 ENLARGED EXPANSION PLAN Date 16362 XXX MIDWEST WATER SPORTS EXPANSION 5160 W BROADWAY AVE, CRYSTAL MN 55429 SCALE:3/32" = 1'-0"A2.2 1 EXPANSION FLOOR PLAN SITE PLAN REVIEW 5/12/2020 5.3 A B C.1 E F G.1 H J K L M N P Q R SCDE.1 G 58' - 0"STANDING SEAM PREFINISHED METAL ROOF EXISTING MASONRY W/ ROUGH TEXTURE (7) DOWNSPOUTS 40' O.C. PREFINISHED RIBBED METAL PANEL SIDING 10' - 0" 19' - 0" 10' - 0" 14' - 8 1/2" 19' - 0"21' - 0"19' - 0"21' - 0"19' - 0"21' - 0"19' - 0"21' - 0"19' - 0"21' - 0"19' - 0" 14' - 3 1/2" 1234 22' - 4"35' - 8"51' - 2 1/4"58' - 0"EXISTING MASONRY WITH ROUGH TEXTURE PREFINISHED RIBBED METAL PANEL SIDING EQ EQ ABC.1EFG.1HJKLMNPQRS CDE.1G 32' - 4"3' - 4"14' - 7 3/4" 6' - 8 1/4" EXISTING MASONRY W/ ROUGH TEXTURE PREFINISHED RIBBED METAL PANEL SIDING 37' - 0"20' - 4 1/4"13' - 0"20' - 0 3/8"13' - 0"15' - 0"18' - 0"26' - 6 5/8"18' - 0"26' - 6 5/8"18' - 0"15' - 0" 1 2 3 4 EXISTING MASONRY WITH ROUGH TEXTURE PREFINISHED RIBBED METAL PANEL SIDING 20' - 0 1/4" 20' - 0 1/4" 20' - 0 1/4" 20' - 0 1/4"20' - 10"20' - 10 3/8" 20' - 10 3/8"20' - 10" Sheet Title Project Number Sheet Number Issued For Date Project Client Project Manager Date Reg. No. I hereby certified that this plan, specification or report was prepared by me or under my direct supervision and that I am a duly Licensed Architect under the laws of the State of Minnesota Edward A. Farr ©COPYRIGHT 2020 Location 5/26/2020 3:10:34 PMA5.120.011 EXTERIOR ELEVATIONS Date 16362 XXX MIDWEST WATER SPORTS EXPANSION 5160 W BROADWAY AVE, CRYSTAL MN 55429 SCALE:1/16" = 1'-0"A5.1 4 SOUTH SCALE:1/16" = 1'-0"A5.1 2 EAST SCALE:1/16" = 1'-0"A5.1 1 NORTH SCALE:1/16" = 1'-0"A5.1 3 WEST SITE PLAN REVIEW 5/12/2020 CITY REVISIONS 5/26/2020 5.3 BURLINGTON NORTHERNRAILROAD2 N DW BROADWAY AVENUE17 5 1 3 248' - 1 1/8" 10 EXISTING WALL PACK LIGHTS ON EXISTING BUILDING PROPOSED WALL PACK LIGHT OVER PROPOSED MANDOOR (XTOR1B) PROPOSED WALL PACK LIGHT ABOVE PROPOSED OVERHEAD DOOR (XTOR4B) 0.2 fc 0.1 fc 0.1 fc 0.2 fc 0.1 fc 0.1 fc 0.1 fc 0.1 fc 0.1 fc 0.5 fc Sheet Title Project Number Sheet Number Issued For Date Project Client Project Manager Date Reg. No. I hereby certified that this plan, specification or report was prepared by me or under my direct supervision and that I am a duly Licensed Architect under the laws of the State of Minnesota Edward A. Farr ©COPYRIGHT 2020 Location 5/28/2020 10:57:39 AMA6.120.011 EXTERIOR LIGHTING PLAN Date 16362 XXX MIDWEST WATER SPORTS EXPANSION 5160 W BROADWAY AVE, CRYSTAL MN 55429 SITE PLAN REVIEW 5/12/2020 CITY REVISIONS 5/26/2020 SCALE:1" = 30'-0"A6.1 1 EXTERIOR LIGHTING PLAN 0.05 fc 1.0 fc 5.3 UDC AMENDMENTS PAGE 1 OF 4 ___________________________________________________________________________ FROM: Dan Olson, City Planner TO: Anne Norris, City Manager (for June 16 meeting) DATE: June 11, 2020 RE: Consider first reading of an ordinance amending the Unified Development Code __________________________________________________________________________ A. BACKGROUND Staff is proposing miscellaneous amendments to the unified development code (UDC). The proposed amendments are corrections or clarifications, with the exception of two policy questions: Minimum lot size. Reduce the minimum lot area requirement for two-family dwellings from 12,000 sq. ft. to 10,000 sq. ft. Per-unit requirements. Eliminate the per-unit requirements from the minimum lot size requirements. The per-unit requirements are effectively a density standard that is not necessary because density is limited elsewhere in the UDC. At its May 19, 2020 work session, the Council expressed support for staff to bring these amendments to a public hearing and ask for a recommendation from the Planning Commission. On June 8, the Commission held the hearing and recommended approval of the amendments on a 5-3 vote. No one from the public submitted comments on the amendments. Attachment: A. Ordinance amending the UDC B. PROPOSED AMENDMENTS Lot area requirements. 1. Reduce the minimum lot area for two-family homes from 12,000 to 10,000 sq. ft.: The current 12,000 sq. ft. minimum is the same as two single family lots (2 x 6,000 = 12,000). COUNCIL STAFF REPORT Miscellaneous UDC amendments 5.4 UDC AMENDMENTS PAGE 2 OF 4  The policy rationale is that a two-family dwelling does not need as much lot area as two separate single family lots, because two attached units do not have side yards between them like two single family homes on separate lots.  This change would provide an opportunity for more property owners to respond to market demand for additional housing units while still preserving the overall character of neighborhoods in the R-1 district. The effect of this change would increase the approximate share of R-1 parcels eligible for a two-family dwelling from 10% to 15%. Requirement Crystal Golden Valley Robbinsdale New Hope Brooklyn Center Minimum Lot Area for Two-Family Dwellings in R-1 12,000 SF 10,000 SF Two-family not allowed in R-1 Two-family not allowed in R-1 Two-family not allowed in R-1 Two-family not allowed in R-1 Minimum Lot Area for Two-Family Dwellings in R-2 12,000 SF 10,000 SF 10,000 SF 7,500 SF 12,000 SF(two stacked units) 10,000 SF (two units side by side) 12,400 SF Minimum Lot Area for Two-Family Dwellings in R-3 12,000 SF 10,000 SF 15,000 SF 7,500 SF 10,000 SF (two units side by side) Two-family not allowed in R-3 2. Remove the per-unit requirements from the minimum lot area requirement and reduce the minimum lot size.  The current per-unit minimum lot size requirements act as a density requirement even though density is regulated elsewhere in the UDC.  The policy rationale is to remove this conflicting density requirement from a place it doesn’t belong (the lot size requirement) and bring the UDC into conformance with the density limits in the Comprehensive Plan.  The effect of this change would be to eliminate a conflicting density limit that will typically be stricter than the density limit elsewhere in the UDC. For example, the vacant site at 3401-3415 Douglas could have up to 16 units based on the density limit in the code but only 10 units based on the per-unit requirement for the minimum lot size. The higher density (16) is consistent with the city’s Comprehensive Plan; the lower density (10) is not. Requirement Crystal Golden Valley Robbinsdale New Hope Brooklyn Center Minimum Lot Area for Other Residential Uses in R-2 3,000 SF per unit (minimum 10,000 SF) Other residential uses not allowed 4,200 SF per townhome unit 15,000 SF Range of 1,400 SF- 5,400 SF per unit Minimum Lot Area for Other Residential Uses in R-3 1,200 SF per unit (minimum 20,000 SF) 10,000 SF 15-20,000 SF 500-1,500 SF per apt unit, 4,200 SF per townhome unit 15,000 SF Range of 1,400 SF- 5,400 SF per unit 5.4 UDC AMENDMENTS PAGE 3 OF 4 Other UDC amendments 1. Final plat recording. Language has been added to clarify when a final plat is to be recorded for both lot consolidation and subdivision applications. 2. Density requirements in TC and TC-PD overlay district. The effective maximum density is 80 units per acre in the TC district and 64 units per acre in the TC-PD district. The text has been simplified to eliminate unnecessary and duplicative language regarding height limits which are regulated elsewhere in the code. 3. Use standards for specialized care facilities. The current requirement limits this use to arterial, collector and state-aid streets. The UDC was previously amended to regulate this use by the number of occupants of the facility rather than its location. This amendment is to clarify that the use does not have to be located on a specific type of street. 4. Telecommunication ordinance (cell towers). Staff proposes re-organizing the requirements to make them easier to understand. The most significant changes are to replace minimum lot size requirements with separation distance requirements, based on comments received at the public hearing for the new Verizon tower at 3200 Vera Cruz. Staff also proposes removing exceptions for placing a tower in the front or corner side yard of a property. Changing this requirement is consistent with best practices in the industry. If a particular site has unique characteristics or challenges that require a tower between the building and a public street, then the variance process is an available remedy. 5. Encroachment table. This amendment is to delete deck setback requirements inadvertently placed in the encroachment table. 6. Height of detached accessory dwelling units (ADU). Currently a detached ADU cannot exceed 20’ or the height of the home, whichever is less. The amendment would increase the numerical limit to 22’ and eliminate the limit based on the height of the principal building. This is necessary for two story ADUs, including ADUs located on the second floor of a detached garage, due to the practical realities of the building code and structural elements such as floor truss thickness and insulation requirements. This height limit would be consistent with other cities that allow two story ADUs. 7. Number of parking spaces for preschools. Currently there is no specific parking requirement for preschools. Staff proposes that preschools have the same required number of parking spaces as elementary and middle schools. 8. Stormwater plan. This amendment corrects an internal inconsistency in the stormwater management regulations as to when a stormwater plan is to be submitted. 5.4 UDC AMENDMENTS PAGE 4 OF 4 C. REQUESTED ACTION At the June 8, 2020 Planning Commission meeting the Commission held the public hearing and then recommended approval of the UDC amendments by a vote of 5 to 3 (one Commission member was absent), with those voting no indicating they were opposed to additional density in the residential districts. No one from the public submitted comments on the amendments. City Council first reading of the ordinance in attachment A is requested. The following is the proposed schedule for adopting a new ordinance: July 21 Council considers second reading and adoption July 30 Summary of ordinance published August 29 Effective date of ordinance 5.4 1 CITY OF CRYSTAL ORDINANCE #2020-____ AN ORDINANCE REVISING CHAPTER V OF THE CRYSTAL CITY CODE RELATED TO THE UNIFIED DEVELOPMENT CODE (UDC) The City of Crystal ordains: ARTICLE I. Chapter V, Section 505, Subdivision 103 of the Crystal city code is hereby amended by adding the double underlined material as follows: Subd. 103. Lot width. “Lot width” means the horizontal distance between side lot lines. In the case of irregularly shaped lots located on a cul-de-sac or curved street, or corner lots that are neither a square, rectangle, or parallelogram, lot width shall be measured at the required front and rear setback lines. ARTICLE II. Chapter V, Subsection 510.23 of the Crystal city code is hereby amended by adding the double underlined material as Subdivision 4 as follows: Subd. 4. Effect of the city council’s decision. Except for minor corrections, no changes, erasures, modifications or revisions shall be made to any final plat after approval has been given by the city council and endorsed by the mayor and city clerk in writing on the plat. Within six months of approval of the final plat by the City Council the applicant shall submit the plat for recording to the county recorder. If the plat is not submitted to the county recorder within six months, the city council’s approval of the final plat shall be automatically revoked. ARTICLE III. Chapter V, Subsection 510.25, Subdivision 4(c) of the Crystal city code is hereby amended by deleting the stricken material and adding the double underlined material as follows: (c)Effect of the city council’s decision. If the final plat is approved and signed by the mayor and city clerk, the applicant shall record the final plat within six months with the county recorder. Except for minor corrections, No no changes, erasures, modifications or revisions shall be made to any final plat after approval has been given by the city council and endorsed by the mayor and city clerk in writing on the plat. Within six months of approval of the final plat by the city council the applicant shall submit the plat to the county recorder for recording. If the plat is not recorded with submitted to the county recorder within six months, the city council’s approval of the final plat shall be automatically revoked. ARTICLE IV. Chapter V, Subsection 515.05, Subdivision 5(d) of the Crystal city code is hereby amended by deleting the stricken material as follows: (d) Densities. Residential densities are as shown in Table 7 of the Crystal city code, section 520.03. An applicant may exceed these densities by up to 60 percent if the building height requirements of this section are met. Attachment A 5.4 2 ARTICLE V. Chapter V, Subsection 515.13, Subdivision 4(b) of the Crystal city code is hereby amended by deleting the stricken material and adding the double underlined material as follows: (b) Densities. Residential densities shall be constructed to a density of 16 to 40 64 units per gross acre. An applicant may exceed these densities by up to 60 percent if the building height requirements of this section are met. ARTICLE VI. Chapter V, Subsection 515.19, Subdivision 3 of the Crystal city code is hereby amended by deleting the stricken material as follows: Subd. 3. Group living use category. (a) Specialized care facilities. Specialized care facilities are subject to the following standards: (1) The facility is served by arterial, collector or municipal state aid streets and such pedestrian facilities as are necessary to accommodate the traffic generated by the facility; and (2) Drive-through facilities are specifically prohibited. ARTICLE VII. Chapter V, Subsection 515.19, Subdivision 6(b) of the Crystal city code is hereby amended by deleting the stricken material and adding the double underlined material as follows: (b) Telecommunications towers. (1) Findings. The Federal Communications Act of 1934 as amended by the Telecommunications Act of 1996 (“the Act”) grants the Federal Communications Commission (FCC) exclusive jurisdiction over the regulation of the environmental effects of radio frequency emissions from telecommunications facilities and the regulation of radio signal interference among users of the radio frequency spectrum. By this subsection, the city intends to exercise the full scope of its authority under the Act and under state law regarding the regulation of towers and telecommunications facilities in the city. Consistent with the Act, the regulation of towers and telecommunications facilities in the city will not have the effect of prohibiting any person from providing wireless telecommunications services. (2) Purpose. The general purpose of this subsection is to regulate the placement, construction and modification of telecommunication towers and facilities in order to protect the health, safety and welfare of the public, while not unreasonably interfering with the development of the competitive wireless telecommunications marketplace in the city. Specifically, the purposes of this subsection are: (i) To regulate the location of telecommunication towers and facilities; (ii) To protect residential areas and land uses from potential adverse impacts of telecommunication towers and facilities; 5.4 3 (iii) To minimize adverse visual impacts of telecommunication towers and facilities through design, siting, landscaping, and innovative camouflaging techniques; (iv) To promote and encourage shared use and co-location of telecommunication towers and antenna support structures; (v) To avoid potential damage to properties caused by telecommunication towers and facilities by ensuring that those structures are soundly and carefully designed, constructed, modified, maintained and promptly removed when no longer used or when determined to be structurally unsound; (vi) To ensure that telecommunication towers and facilities are compatible with surrounding land uses; and (vii) To facilitate the provision of wireless telecommunications services to the residents and businesses of the city in an orderly fashion. (3) Development of towers Zoning districts where towers are allowed. (i) Permitted use at certain locations in the Industrial district (I). A tower is a permitted use in the I district, with approval of a zoning certificate, provided that the site also meets one of the following additional location criteria: (A) It abuts the Canadian Pacific railroad property and also abuts Pennsylvania Avenue, 32nd Avenue or Nevada Avenue; or (B) It is located within the area bounded by Corvallis Avenue, West Broadway, Douglas Drive, 56th Avenue, and Lakeland Avenue/Bottineau Boulevard. (ii) Conditional use at certain locations in the Commercial district (C). A tower is a conditional use in the C general commercial district provided that the site is located within the area bounded by Corvallis Avenue, West Broadway, Douglas Drive, 56th Avenue, and Lakeland Avenue/Bottineau Boulevard. (iii) Towers prohibited elsewhere; relief provision. Towers are prohibited in the city except as expressly authorized herein. Notwithstanding this prohibition, the city council may approve a tower as a conditional use in any other zoning district which reasonably addresses an identified significant gap subject to the following requirements: (A) The provider has submitted the information required by this subsection. (B) The city council makes a finding that the provider has demonstrated by clear and convincing evidence that there is a significant gap in the provider’s service, and: (I) There is no co-location option that would reasonably address the demonstrated significant gap in the provider’s service; or 5.4 4 (II) There is no other alternative tower site that would reasonably address the demonstrated significant gap in the provider’s service. (C) In approving a tower on the site which reasonably addresses the identified significant gap, the city council shall consider the purposes of tower regulation stated in this subsection and the requirements of the Act. (4) An application to develop a tower shall include: (i) The names, addresses and telephone numbers of all owners of other towers or antenna support structures within a half mile radius of the proposed new tower site. (ii) Written documentation that the applicant has made diligent but unsuccessful efforts for permission to install or co-locate the applicant's telecommunications facilities on towers or antenna support structures within a half mile radius of the proposed new tower site. (iii) Written, technical evidence from an engineer that the proposed tower or telecommunications facilities cannot be installed or co-located on another person's tower or antenna support structure located within a half mile radius of the proposed tower site and must be located at the proposed site in order to meet the coverage requirements of the applicant's wireless communications system. (iv) A written statement from an engineer that the construction and placement of the tower will not interfere with public safety communications and the usual and customary transmission or reception of radio, television, or other communications service enjoyed by adjacent properties. (v) Written evidence from an engineer that the proposed structure meets the structural requirements of this UDC. (vi) Written information demonstrating the need for the tower at the proposed site in light of the existing and proposed wireless telecommunications network(s) to be operated by persons intending to place telecommunications facilities on the tower. (5) Review criteria and restrictions. (i) In considering an application where the provider has shown the existence of a significant gap in coverage, the city council shall only authorize a tower if the city makes a finding that such a location is necessary for the city to achieve compliance with the requirements of the Act. (ii) The city council makes a finding that the design of the tower, including factors such as shape, materials, and finishes, adequately uses stealth techniques to minimize its impact on the character of the surrounding area. 5.4 5 (iii) The site must comply with the following minimum area requirements: (a) If zoned commercial or industrial then the site shall contain no less than two acres. (b) If zoned residential then the site shall contain no less than five acres. (c) Notwithstanding (i) and (ii) above, regardless of zoning, if the principal use on the site is a city structure, county building, school, or church, then the site shall contain no less than three acres. (d) For the purposes of determining site area for this particular provision, contiguous lots owned by the same entity shall be considered a single site. (iv) No tower shall be located within 660 feet (1/8 mile) of another tower. (v) No tower shall be located on a lot having as its principal use a one or two family dwelling. (vi) No part of the tower shall be located within 165 feet (1/32 mile) of any one or two family dwelling on another lot or within 82.5 feet (1/64 mile) of any lot line. This provision shall not prohibit the subsequent expansion of a dwelling which reduces the distance from a tower to the dwelling, even if such expansion causes the tower to become non-conforming to the setback requirement. (vii) The height of the tower shall not exceed 100 feet, or 50% of the distance from any part of the tower to the nearest lot line of an adjacent property having a single family or two family dwelling, whichever is less. (viii)(iii) The city may authorize the use of city property, including use of its right- of-way pursuant to chapter 8 of the Crystal city code in accordance with the procedures and subject to the restrictions of this code. (ix) (6) Co-location required. Unless the applicant presents clear and convincing evidence to the city council that co-location at the identified site is not structurally or technically feasible, a new tower may not be built, constructed or erected in the city unless the tower is capable of supporting at least one telecommunications facility comparable in weight, size and surface area to the one located on the tower by the applicant. (7) Setbacks Locational requirements. (i) A tower must be located on a single parcel or contiguous parcels under the same ownership as the applicant having a dimension equal to the height of the tower, as measured between the base of the tower located nearest the property line and the actual property line, unless a qualified engineer specifies in writing 5.4 6 that the collapse of the tower will occur within a lesser distance under reasonably foreseeable circumstances. (ii) Unless otherwise required by this subsection, Setback locational requirements for towers are measured from the base of the tower to the property line of the parcel on which it is located. (iii) Towers may not be located between a principal structure and a public street, with the following exceptions: (A) In the I district, towers may be placed within a side yard abutting an internal industrial street. (B) On sites adjacent to public streets on all sides, towers may be placed within a side yard abutting a local street. (C) This requirement does not apply to towers that are a conditional use in all zoning districts. (iv) No tower shall be located within 660 feet of another tower. (v) No tower shall be located on a lot having as its principal use a one or two family dwelling. (vi) Towers are subject to the following locational requirements from residential uses. (a) Towers in the I district shall be separated from all properties used for residential purposes by a minimum of 90 feet or 150% of the height of the proposed tower, whichever is greater. The minimum tower separation distance shall be calculated and applied irrespective of city jurisdictional boundaries. Measurement of tower separation distances for compliance with this requirement shall be measured from the base of a tower to the closest point of the proposed site. (b) Where towers are a conditional use, no part of the tower shall be located within 165 feet of any one or two family dwelling. This provision shall not prohibit the subsequent expansion of a dwelling which reduces the distance from a tower to the dwelling, even if such expansion causes the tower to become non-conforming to this locational requirement. (7)(8) Structural requirements. Towers must be designed and certified by an engineer to be structurally sound and, at minimum, in conformance with the international state building code and any other standards set forth in this subsection. (8)(9) Height. Towers are subject to the following height requirements: (a) Tower height is measured from grade and includes the tower structure itself, the base pad, and any other telecommunication facilities attached 5.4 7 thereto. If a lightning rod is included in the structure, the lightning rod is not included in the height calculation, but shall not exceed ten feet in height. (b) A tower may not exceed 165 feet in height in the commercial or industrial zoning districts, 100 feet in residential districts, or 50% of the distance from any part of the tower to the nearest lot line of an adjacent property having a single or two family dwelling, whichever is less. (9) Separation or buffer requirements. Towers must be separated from all properties used for residential purposes by a minimum of 90 feet or 150% of the height of the proposed tower, whichever is greater. The minimum tower separation distance shall be calculated and applied irrespective of city jurisdictional boundaries. Measurement of tower separation distances for the purpose of compliance with this subsection shall be measured from the base of a tower to the closest point of the proposed site. This requirement does not apply to towers that are a conditional use in a zoning district. (10) Method of determining tower height. Measurement of tower height must include the tower structure itself, the base pad, and any other telecommunications facilities attached thereto. Tower height is measured from grade. (11)(10) Illumination. Towers may not be artificially lighted except as required by the Federal Aviation Administration (FAA). At time of construction of a tower, in cases where there are residential uses located within a distance from the tower which is 3 times the height of the tower, dual mode lighting must be requested from the FAA. Notwithstanding this provision, the city may approve the placement of an antenna on an existing or proposed lighting standard, provided that the antenna is integrated with the lighting standard. (12)(11) Exterior finish. Towers not requiring FAA painting or marking must have an exterior finish as approved by the city council if a conditional use permit is required or by city staff if a zoning certificate is required. (13)(12) Fencing. Fences constructed around or upon parcels containing towers, antenna support structures, or telecommunications facilities must be constructed in accordance with the applicable fencing requirements in the zoning district where it is located, unless more stringent fencing requirements are required by FCC regulations or different requirements are allowed by the city council through approval of the conditional use permit. (14)(13) Landscaping. Landscaping on parcels containing towers, antenna support structures or telecommunications facilities must be in accordance with the applicable landscaping requirements of this UDC and as shown on the approved site plan. Utility buildings and structures accessory to a tower must be architecturally designed to blend in with the surrounding environment and to meet such setback requirements as are compatible with the actual placement of the tower. Ground mounted equipment must be screened from view by suitable vegetation, 5.4 8 except where a design of non-vegetative screening better reflects and complements the character of the surrounding neighborhood. Accessory buildings may not be more than 2,000 square feet in size. (15)(14) Security. Towers must be reasonably posted and secured to protect against trespass. (16)(15) Access. Parcels upon which towers are located must provide access during normal business hours to at least one paved vehicular parking space on site. (17)(18) StealthTower and equipment design. To the extent reasonably practical, towers must be of stealth design. Equipment that is accessory to the tower shall be screened from view or architecturally designed to blend in with the surrounding environment and shall not exceed 2,000 square feet in size. (18)(19) Other telecommunications facilities. Telecommunications facilities not attached to a tower may be permitted as an accessory use to any antenna support structure at least 50 feet and no more than 100 feet in height regardless of the zoning restrictions applicable. The owner of such structure must, by written certification to the building official, establish the following facts at the time plans are submitted for a building permit: (i) That the height from grade of the telecommunications facilities and antennae support structure does not exceed the maximum height from grade of permitted structures by more than 20 feet; (ii) That the antenna support structure and telecommunications facilities comply with the state building code; and (iii) That any telecommunications facilities and their appurtenances, located above the primary roof of an antenna support structure, are set back one foot from the edge of the primary roof for each one foot in height above the primary roof of the antenna support structure. This setback requirement does not apply to antennas that are mounted to the exterior of antenna support structures below the primary roof and do not protrude more than six inches from the side of the antenna support structure. Screened telecommunications facilities and their appurtenances are exempt from setback requirements. (19)(20) Existing towers. (i) An existing tower may be modified or demolished and rebuilt to accommodate co-location of additional telecommunications facilities as follows: (a) Application for an appropriate city permit shall be made to the city council; and (b) The total height of the modified tower and telecommunications facilities attached thereto shall not exceed the maximum height for towers allowed under this subsection. 5.4 9 (ii) A tower that is being rebuilt to accommodate the co-location of additional telecommunications facilities may be relocated on the same parcel subject to the setback locational requirements of this subsection. However, if it is impossible for the tower to be rebuilt in compliance with the those setback requirements of this subsection, such setback requirements shall be waived to allow the tower to be rebuilt in its exact previous location. (20)(21) Abandoned or unused towers or portions of towers. Abandoned or unused towers and associated above-ground facilities must be removed within six months of the cessation of operations of an antenna facility at the site unless an extension is approved by the zoning administrator. A copy of the relevant portions of a signed lease that requires the applicant to remove the tower and associated facilities upon cessation of operations at the site shall be submitted at the time of application. If a tower is not removed within six months of the cessation of operations at a site, the tower and associated facilities may be removed by the city and the costs of removal assessed against the property pursuant to the Crystal city code, section 635chapter VI. (21)(22) Additional criteria for variances for towers. The city council may grant a variance pursuant to the Crystal city code, subsection 510.33 if the applicant also demonstrates all of the following with written or other satisfactory evidence: (i) The location, shape, appearance or nature of use of the proposed tower will neither substantially detract from the aesthetics of the area nor change the character of the neighborhood in which the tower is proposed to be located; (ii) The variance will not create any threat to the public health, safety, or welfare; (iii) In the case of a requested modification to the setback locational requirements, the applicant may provide the following justifications for approval of the variance: (a) that the The size of parcel upon which the tower is proposed to be located makes compliance impossible, and the only alternative for the applicant is to locate the tower at another site that poses a greater threat to the public health, safety or welfare or is closer in proximity to lands used for residential purposes. (b) According to written technical evidence from an engineer, the proposed tower and telecommunications facilities must be located at the proposed site in order to close a significant gap in the provider’s coverage in the city and that landscaping and other buffers are provided to lessen the tower’s visibility to residential areas. (iv) In the case of a request for modification to the separation requirements of this subsection that the proposed site is zoned I and the proposed site is at least double the minimum standard for separation from lands used for residential purposes; 5.4 10 (v) In the case of a request for modification of the separation requirements of this subsection, if the person provides written technical evidence from an engineer that the proposed tower and telecommunications facilities must be located at the proposed site in order to close a significant gap within the city in coverage of the provider and if the person agrees to create approved landscaping and other buffers to screen the tower from being visible to the residential area; and (iv)(iv) In the case of a request for modification of the maximum height limit, that the modification is necessary to: (a) Facilitate co-location of telecommunications facilities in order to avoid construction of a new tower; or (b) To meet the coverage requirements of the applicant's wireless communications system, which requirements must be documented with written, technical evidence from an engineer. (22)(23) Maintenance. Towers must be maintained in accordance with the following provisions: (i) Tower owners must employ ordinary and reasonable care in construction and use commonly accepted methods and devices for preventing failures and accidents that are likely to cause damage, injuries, or nuisances to the public; (ii) Tower owners must install and maintain towers, telecommunications facilities, wires, cables, fixtures and other equipment in compliance with the requirements of the national electric safety code and all federal communications commission, state and local regulations, and in such a manner that they will not interfere with the use of other property; (iii) Towers, telecommunications facilities and antenna support structures must be kept and maintained in good condition, order, and repair; (iv) Maintenance or construction on a tower, telecommunications facilities or antenna support structure must be performed by qualified maintenance and construction personnel; (v) Towers must comply with radio frequency emissions standards of the federal communications commission; and (vi) In the event the use of a tower is discontinued by the tower owner, the tower owners must provide written notice to the city of its intent to discontinue use and the date when the use will be discontinued. (23)(24) Additional requirements. (i) Inspections. The city may conduct inspections at any time, upon reasonable notice to the property owner and the tower owner to inspect the tower for the purpose of determining if it complies with the Uniform state Building building 5.4 11 Code code and other construction standards provided by the city code, federal and state law. The expense related to such inspections will be borne by the property owner. Based upon the results of an inspection, the building official may require repair or removal of a tower. (ii) Excavation and monitoringCompliance to emission requirements. The city may request The the owner of a telecommunications facility shall provide the city with current, technical evidence of compliance with FCC radiation emission requirements, annually or more frequently at the city’s reasonable request. If the owner does not promptly provide the city with satisfactory technical evidence of FCC compliance, the city may carry out tests to ensure FCC radiation compliance using a qualified expert. The owner shall reimburse the city for its reasonable costs in carrying out such compliance testing. ARTICLE VIII. Chapter V, Subsection 520.01, Subdivision 6 of the Crystal city code is hereby amended by deleting the stricken material as follows: Subd. 6. Permitted encroachments into setback and height requirements. Structures or structural features may extend beyond the wall of the structure and into a required setback and height requirement in compliance with Table 6. Table 6: Permitted Encroachments [1] R-1 R-2 R-3 Commercial TC Industrial AP Permitted Setback Encroachments [2] Accessibility ramps May encroach into any setback, but cannot be located in the public right-of- way May encroach into any setback, but cannot be located in the public right-of- way May encroach into any setback, but cannot be located in the public right-of-way May encroach into any setback, but cannot be located in the public right- of-way May encroach into any setback, but cannot be located in the public right-of-way May encroach into any setback, but cannot be located in the public right-of-way May encroach into any setback, but cannot be located in the public right-of-way Air conditioning or heating equipment 2 feet in the side yard, but cannot be closer than 10 feet to the living quarters of a dwelling on adjacent property 2 feet in the side yard, but cannot be closer than 10 feet to the living quarters of a dwelling on adjacent property 2 feet in the side yard, but cannot be closer than 10 feet to the living quarters of a dwelling on adjacent property 2 feet in the side yard, but cannot be closer than 10 feet to the living quarters of a dwelling on adjacent property Not Applicable 2 feet in the side yard, but cannot be closer than 10 feet to the living quarters of a dwelling on adjacent property Not Applicable 5.4 12 Table 6: Permitted Encroachments [1] R-1 R-2 R-3 Commercial TC Industrial AP Attached decks or open porches Front/rear: 10 feet for attached decks or open porches in the front or rear yard of one or two family dwellings, provided that no more than 240 SF of the deck or porch encroaches into the 30 foot required setback Side: 3 feet Corner side: 3 feet Front/rear: 10 feet for attached decks or open porches in the front or rear yard of one or two family dwellings, provided that no more than 240 SF of the deck or porch encroaches into the 30 foot required setback Side: 3 feet Corner side: 3 feet Front/rear: 10 feet for attached decks or open porches in the front or rear yard of one or two family dwellings, provided that no more than 240 SF of the deck or porch encroaches into the 30 foot required setback Side: 3 feet Corner side: 3 feet Not Applicable Not Applicable Not Applicable Not Applicable Awnings Front: 3 feet Side: 2 feet Rear: 3feet Corner side: 2 feet Front: 3 feet Side: 2 feet Rear: 3 feet Corner side: 2 feet Front: 3 feet Side: 2 feet Rear: 3 feet Corner side: 2 feet Front: 3 feet Side: 2 feet Rear: 3 feet Corner side: 2 feet Front/corner side: May be located up to the property line Front: 3 feet Side: 2 feet Rear: 3 feet Corner side: 2 feet Front: 3 feet Side: 2 feet Rear: 3feet Corner side: 2 feet Building projections or bumpouts, May encroach 5 feet in the front setback and 10 feet in the rear setback if the conditions in Note 3, below, are met May encroach 5 feet in the front setback and 10 feet in the rear setback if the conditions in Note 3, below, are met May encroach 5 feet in the front setback and 10 feet in the rear setback if the conditions in Note 3, below, are met Not Applicable Not Applicable Not Applicable Not Applicable Chimneys May encroach 2 feet into any setback May encroach 2 feet into any setback May encroach 2 feet into any setback May encroach 2 feet into any setback Not Applicable Not Applicable Not Applicable 5.4 13 Table 6: Permitted Encroachments [1] R-1 R-2 R-3 Commercial TC Industrial AP Detached decks and patios 10 feet for detached decks or patios in the front yard for one and two family dwellings, provided that no more than 240 SF of the deck or patio encroaches into the 30 foot required setback 10feet for detached decks or patios in the front yard for one and two family dwellings, provided that no more than 240 SF of the deck or patio encroaches into the 30 foot required setback 10 feet for detached decks or patios in the front yard for one and two family dwellings, provided that no more than 240 SF of the deck or patio encroaches into the 30 foot required setback Not Applicable Front/corner side: Patios may be located up to the property line Not Applicable Not Applicable Eaves or overhangs May encroach 2 feet into any setback May encroach 2 feet into any setback May encroach 2 feet into any setback May encroach 2 feet into any setback May encroach 2 feet into any setback, but cannot be located in public right- of-way May encroach 2 feet into any setback May encroach 2 feet into any setback Egress windows [4] May encroach 3 feet into any setback May encroach 3 feet into any setback May encroach 3 feet into any setback Not Applicable Not Applicable Not Applicable Not Applicable Landings Landings cannot exceed 4 feet by 4 feet, together with necessary steps to reach grade Landings cannot exceed 6 feet by 6 feet, together with necessary steps to reach grade Landings cannot exceed 6 feet by 6 feet, together with necessary steps to reach grade Landings cannot exceed 6 feet by 6 feet, together with necessary steps to reach grade Cannot encroach into public right-of-way Landings cannot exceed 6 feet by 6 feet, together with necessary steps to reach grade Landings cannot exceed 6 feet by 6 feet, together with necessary steps to reach grade Satellite dishes May encroach 2 feet into any setback May encroach 2 feet into any setback May encroach 2 feet into any setback May encroach 2 feet into any setback May encroach 2 feet into any setback May encroach 2 feet into any setback May encroach 2 feet into any setback Treehouses 20 feet for treehouses in the front yard for one and two family dwellings 20 feet for treehouses in the front yard for one and two family dwellings Not Applicable Not Applicable Not Applicable Not Applicable Not Applicable 5.4 14 Table 6: Permitted Encroachments [1] R-1 R-2 R-3 Commercial TC Industrial AP Permitted Height Encroachments Chimneys Not to exceed 5 feet above the highest point of the roof Not to exceed 5 feet above the highest point of the roof Not to exceed 5 feet above the highest point of the roof Not Applicable Not Applicable Not Applicable Not Applicable Spires or steeples for religious institutions As determined by the City Council in CUP review As determined by the City Council in CUP review As determined by the City Council in CUP review As determined by the City Council in CUP review Not Applicable As determined by the City Council in CUP review Not Applicable NOTES: [1] Encroachments are permitted as shown in the table, but in no instance shall encroachments be allowed in a platted or dedicated easement. [2] Unless otherwise described, the numerical dimensions listed in this table are the linear dimensions allowed for the setback encroachment. For example, in the R-1 district, awnings may be three feet closer to the front property line than the required front setback for the dwelling. [3] Front setback: Building projections or bumpouts to the front of the principal building are allowed, subject to these conditions: 1) Each addition shall not exceed 24 feet in width, and the cumulative width of all additions shall not exceed 50% of the width of the principal building; 2) Each addition’s encroachment into the 30 foot required front setback shall not exceed 80 square feet, and the cumulative encroachment of all additions shall not exceed 100 square feet. Rear setback: Building projections or bumpouts to the rear of the principal building are allowed, subject to these conditions: 1) The encroachment occupies no more than 300 square feet of the area within the rear setback; 2) The width of the encroachment is no more than 50%% of the lot width measured at the rear setback line; 3) The property owner removes any existing accessory buildings from the rear yard; 4) The property owner signs and has notarized a written statement to the city acknowledging that no accessory buildings may be built or placed in the rear yard and this statement will be recorded against the property. [4] If an egress window is constructed as part of the foundation of the dwelling, the egress window shall meet the required setbacks for the dwelling. ARTICLE IX. Chapter V, Subsection 520.03, Subdivision 2, of the Crystal city code is hereby amended by deleting the stricken material and adding the double underlined material as follows: Subd. 2. Site development standards. (a) Site development standards for principal buildings. Table 7 are the regulations for residential densities, setbacks, number of principal buildings, lot dimensions, building height, and green space for placing principal buildings in the city’s zoning districts. (b) Site development standards for accessory structures. Table 8 are the setback and height requirements for placing accessory structures in the city’s zoning districts. Table 7: Zoning District Site Development Standards for Principal Buildings R1 R2 R3 Commercial TC Industrial AP Permitted Residential Density 5.4 15 Table 7: Zoning District Site Development Standards for Principal Buildings R1 R2 R3 Commercial TC Industrial AP Permitted Residential Density No more than 6 units per acre (gross) 6 to 16 units per acre (gross) 16 to 40 units per acre (gross) Not Applicable 25 to 50 80 units per acre (gross) Not Applicable Not Applicable Minimum Building Setbacks [1] Front 30 feet 30 feet 30 feet 10 feet 1 foot minimum 10 foot maximum 10 feet 200’ from residential use Side 5 feet 15 feet 15 feet 10 feet 0 foot minimum 10 feet 200’ from residential use Rear 30 feet 30 feet 30 feet 10 feet 3 foot minimum 10 feet 200’ from residential use Corner Side 10 feet [2] 30 feet 30 feet 15 feet 2 foot minimum 12 foot maximum 15 feet 200’ from residential use Number of Principal Buildings Maximum number of principal buildings per property One One One One Not Applicable One Not Applicable Minimum Lot Area One-family Detached Dwelling 6,000 SF 6,000 SF Not Applicable Not Applicable Not Applicable Not Applicable Not Applicable Two-Family Dwelling 1210,000 SF 1210,000 SF 1210,000 SF Not Applicable Not Applicable Not Applicable Not Applicable Other Residential Uses Not Applicable 3,000 per dwelling, but in no event less than 10,000 SF 10,000 SF 1,200 per dwelling, but in no event less than 20,000 SF 20,000 SF Not Applicable Not Applicable Not Applicable Not Applicable Non-Residential Uses [3] Not Applicable Not Applicable Not Applicable 20,000 SF Not Applicable 20,000 SF Not Applicable Minimum Lot Depth One-family Detached Dwelling 100 feet 100 feet 100 feet Not Applicable Not Applicable Not Applicable Not Applicable Two-Family Dwelling 100 feet 100 feet 100 feet Not Applicable Not Applicable Not Applicable Not Applicable Other Residential Uses Not Applicable 100 feet 100 feet Not Applicable Not Applicable Not Applicable Not Applicable 5.4 16 Table 7: Zoning District Site Development Standards for Principal Buildings R1 R2 R3 Commercial TC Industrial AP Non-Residential Uses [3] 100 feet 100 feet 100 feet 120 feet Not Applicable 120 feet Not Applicable Minimum Lot Width One-family Detached Dwelling 50 feet 50 feet Not Applicable Not Applicable Not Applicable Not Applicable Not Applicable Two-Family Dwelling 80 feet 80 feet Not Applicable Not Applicable Not Applicable Not Applicable Not Applicable Other Residential Uses Not Applicable 100 feet 100 feet Not Applicable Not Applicable Not Applicable Not Applicable Non-Residential Uses [3] 100 feet 100 feet 100 feet 100 feet Not Applicable 100 feet Not Applicable Maximum Building Height One-family Detached Dwelling 2 stories or 32 feet, whichever is less 2 stories or 32 feet, whichever is less Not Applicable Not Applicable Not Applicable Not Applicable Not Applicable Two-Family Dwelling 2 stories or 32 feet, whichever is less 2 stories or 32 feet, whichever is less 2 stories or 32 feet, whichever is less Not Applicable Not Applicable Not Applicable Not Applicable Other Residential Uses Not Applicable 3 stories or 40 feet, whichever is less 5 stories or 60 feet, whichever is less Not Applicable 5 stories or 60 feet, whichever is less Not Applicable Not Applicable Non-Residential Uses [3] 2 stories or 32 feet, whichever is less 3 stories or 40 feet, whichever is less 5 stories or 60 feet, whichever is less 5 stories or 60 feet, whichever is less 5 stories or 60 feet, whichever is less 5 stories or 60 feet, whichever is less 3 stories or 40 feet, whichever is less Minimum Green Space [4] One and Two- Family Detached Dwellings See note [5] below See note [5] below See note [5] below Not Applicable Not Applicable Not Applicable Not Applicable Other Uses 30% 25% 20% 15% 10% 10% Not Applicable 5.4 17 Table 7: Zoning District Site Development Standards for Principal Buildings R1 R2 R3 Commercial TC Industrial AP NOTES: [1] Setbacks for some principal uses are regulated by the Use-Specific Standards found in Table 3. [2] If the vehicle entrance for an attached garage faces a street or alley, the garage shall be at least 20 feet from the corner side property line. [3] For the purposes of Table 7, specialized care facilities shall be defined as non-residential uses. [4] The minimum green space requirement is expressed as a percentage of the property that shall be free from any impervious surfaces. [5] In residential zoning districts, the minimum green space requirement applies only to the rear yard of one and two family dwellings. The requirement is expressed as a percentage of the rear yard that is free of any impervious surfaces: 1. Rear yard of 5,001 SF or greater: 50% 2. Rear yard of between 4,501 and 5,000 SF: 45% 3. Rear yard of between 4,001 and 4,500 SF: 40% 4. Rear yard of between 3,501 and 4,000 SF: 35% 5. Rear yard of between 3,000 and 3,500 SF: 30% 6. Rear yard of less than 3,000 SF: 25%. Table 8: Zoning District Site Development Standards for Accessory Structures Accessory Structure Type R1 R2 R3 Commercial TC Industrial AP Minimum Structure Setbacks Accessory dwelling units, detached Front: 30 feet, but cannot be closer to the street than the principal building [2] Side: 5 feet [3] Rear: 5 feet [3] Corner side: 10 feet Front: 30 feet, but cannot be closer to the street than the principal building [2] Side: 5 feet [3] Rear: 5 feet [3] Corner side: 10 feet Not Applicable Not Applicable Not Applicable Not Applicable Not Applicable Amateur radio towers See note [1], below See note [1], below See note [1], below Not Applicable Not Applicable Not Applicable See note [1], below Attached Decks and open porches Front: 30 feet Side: 3 feet Rear: 30 feet Corner side: 10 feet Front: 30 feet Side: 15 feet Rear: 30 feet Corner side: 30 feet Front: 30 feet Side: 15 feet Rear: 30 feet Corner side: 30 feet Front: 30 feet Side: 10 feet Rear: 3 feet Corner side: 30 feet Not Applicable Not Applicable Not Applicable 5.4 18 Table 8: Zoning District Site Development Standards for Accessory Structures Accessory Structure Type R1 R2 R3 Commercial TC Industrial AP Clothesline Poles Front: Not allowed Side: 3 feet Rear: 3 feet Corner side: 10 feet Front: Not allowed Side: 3 feet Rear: 3 feet Corner side: 10 feet Not Applicable Not Applicable Not Applicable Not Applicable Not Applicable Commercial Storage Buildings Not Applicable Not Applicable Not Applicable Front: 30 feet Side: 10 feet Rear: 3 feet Corner side: 30 feet Not Applicable Front: 30 feet Side: 10 feet Rear: 3 feet Corner side: 30 feet Front: 30 feet Side: 10 feet Rear: 3 feet Corner side: 30 feet Detached decks Front: 30 feet Side: 3 feet Rear: 3 feet Corner side: 10 feet Front: 30 feet Side: 5 feet Rear: 5 feet Corner side: 10 feet Front: 30 feet Side: 5 feet Rear: 5 feet Corner side: 10 feet Front: 30 feet Side: 10 feet Rear: 10 feet Corner side: 15 feet Not Applicable Not Applicable Not Applicable Detached garages or carports Front: 30 feet, but cannot be closer to the street than the principal building [2] Side: 5 feet [3] Rear: 5 feet [3] , [4] Corner side: 10 feet [4] Front: 30 feet, but cannot be closer to the street than the principal building Side: 5 feet [3] Rear: 5 feet [3], [4] Corner side: 10 feet [4] Front: 30 feet, but cannot be closer to the street than the principal building Side: 10 feet Rear: 10 feet Corner side: 10 feet [4] Front: 30 feet, but cannot be closer to the street than the principal building Side: 10 feet Rear: 10 feet Corner side: 10 feet [4] Not Applicable Front: 30 feet, but cannot be closer to the street than the principal building Side: 10 feet Rear: 10 feet Corner side: 10 feet [4] Front: 30 feet, but cannot be closer to the street than the principal building Side: 10 feet Rear: 10 feet Corner side: 10 feet [4] Flagpoles Cannot be closer than 5 feet to any property line Cannot be closer than 5 feet to any property line Cannot be closer than 5 feet to any property line Cannot be closer than 5 feet to any property line Cannot be closer than 5 feet to any property line Cannot be closer than 5 feet to any property line Cannot be closer than 5 feet to any property line 5.4 19 Table 8: Zoning District Site Development Standards for Accessory Structures Accessory Structure Type R1 R2 R3 Commercial TC Industrial AP Gazebos Front: 30 feet, but cannot be closer to the street than the principal building Side: 3 feet Rear: 3 feet Corner side: 10 feet Front: 30 feet, but cannot be closer to the street than the principal building Side: 3 feet Rear: 3 feet Corner side: 10 feet Front: 30 feet, but cannot be closer to the street than the principal building Side: 3 feet Rear: 3 feet Corner side: 10 feet Not Applicable Not Applicable Not Applicable Not Applicable Noncommercial greenhouses Front: 30 feet, but cannot be closer to the street than the principal building Side: 3 feet Rear: 3 feet Corner side: 10 feet Front: 30 feet, but cannot be closer to the street than the principal building Side: 3 feet Rear: 3 feet Corner side: 10 feet Not Applicable Not Applicable Not Applicable Not Applicable Not Applicable Patios Front: 30 feet Side: 1 foot Rear: 1 foot Corner side: 10 feet Front: 30 feet Side: 1 foot Rear: 1 foot Corner side: 10 feet Front: 30 feet Side: 5 feet Rear: 3 feet Corner side: 30 feet Front: 30 feet Side: 10 feet Rear: 3 feet Corner side: 30 feet Not Applicable Not Applicable Not Applicable 5.4 20 Table 8: Zoning District Site Development Standards for Accessory Structures Accessory Structure Type R1 R2 R3 Commercial TC Industrial AP Sheds Front: 30 feet, but cannot be closer to the street than the principal building [2] Side: 3 feet Rear: 3 feet Corner side: 10 feet Front: 30 feet, but cannot be closer to the street than the principal building Side: 3 feet Rear: 3 feet Corner side: 10 feet Front: 30 feet, but cannot be closer to the street than the principal building Side: 3 feet Rear: 3 feet Corner side: 10 feet Front: 30 feet, but cannot be closer to the street than the principal building Side: 10 feet Rear: 3 feet Corner side: 30 feet Not Applicable Front: 30 feet, but cannot be closer to the street than the principal building Side: 3 feet Rear: 3 feet Corner side: 10 feet Front: 30 feet, but cannot be closer to the street than the principal building Side: 5 feet Rear: 5 feet Corner side: 10 feet Solar energy systems See note [5], below See note [5], below See note [5], below See note [5], below See note [5], below See note [5], below See note [5], below Swimming pools, hot tubs and spas Front: Not allowed Side: 5 feet Rear: 5 feet Corner side: 10 feet Front: Not allowed Side: 5 feet Rear: 5 feet Corner side: 10 feet Front: Not allowed Side: 10 feet Rear: 10 feet Corner side: 15 feet Front: Not allowed Side: 10 feet Rear: 10 feet Corner side: 15 feet Front: Not allowed Side: 10 feet Rear: 10 feet Corner side: 20 feet Not Applicable Not Applicable Tennis or other recreational courts Front: 30 feet, but cannot be closer to the street than the principal building Side: 5 feet Rear: 5 feet Corner side: 10 feet Front: 30 feet, but cannot be closer to the street than the principal building Side: 5 feet Rear: 5 feet Corner side: 10 feet Front: 30 feet, but cannot be closer to the street than the principal building Side: 5 feet Rear: 5 feet Corner side: 10 feet Not Applicable Not Applicable Not Applicable Not Applicable Treehouses Front: 30 feet Side: 3 feet Rear: 3 feet Corner side: 10 feet Front: 30 feet Side: 3 feet Rear: 3 feet Corner side: 10 feet Not Applicable Not Applicable Not Applicable Not Applicable Not Applicable 5.4 21 Table 8: Zoning District Site Development Standards for Accessory Structures Accessory Structure Type R1 R2 R3 Commercial TC Industrial AP Workshops Front: 30 feet, but cannot be closer to the street than the principal building [2] Side: 5 feet [3] Rear: 5 feet [3] Corner side: 10 feet Front: 30 feet, but cannot be closer to the street than the principal building Side: 5 feet [3] Rear: 5 feet [3] Corner side: 10 feet Not Applicable Not Applicable Not Applicable Not Applicable Not Applicable Maximum Structure Height Accessory dwelling units, detached The height of the dwelling unit cannot exceed the height of the principal building or 20’, whichever is less 22 feet The height of the dwelling unit cannot exceed the height of the principal building or 20’, whichever is less 22 feet Not Applicable Not Applicable Not Applicable Not Applicable Not Applicable Amateur radio towers Tower not to exceed 75 feet Tower not to exceed 75 feet Tower not to exceed 75 feet Tower not to exceed 75 feet Not Applicable Tower not to exceed 75 feet Tower not to exceed 75 feet Commercial storage buildings Not Applicable Not Applicable Not Applicable 20 feet Not Applicable 20 feet 25 feet Detached accessory buildings [6] 15 feet 15 feet 15 feet 15 feet Not Applicable 15 feet 15 feet Essential services (such as poles or towers) As determined by the city engineer As determined by the city engineer As determined by the city engineer As determined by the city engineer As determined by the city engineer As determined by the city engineer As determined by the city engineer Fences See subsection 520.09 See subsection 520.09 See subsection 520.09 See subsection 520.09 Not Applicable See subsection 520.09 See subsection 520.09 Flagpoles 25 feet 25 feet 25 feet 25 feet 25 feet 25 feet 25 feet 5.4 22 Table 8: Zoning District Site Development Standards for Accessory Structures Accessory Structure Type R1 R2 R3 Commercial TC Industrial AP Satellite dishes Not to exceed 4 feet above the roof Not to exceed 4 feet above the roof Not to exceed 4 feet above the roof Not to exceed 4 feet above the roof Not to exceed 4 feet above the roof Not to exceed 4 feet above the roof Not to exceed 4 feet above the roof Solar energy systems Building mounted: Shall not exceed the maximum allowed building height Freestanding: 20 feet when oriented at maximum tilt Building mounted: Shall not exceed the maximum allowed building height Freestanding: 20 feet when oriented at maximum tilt Building mounted: Shall not exceed the maximum allowed building height Freestanding: 20 feet when oriented at maximum tilt Building mounted: Shall not exceed the maximum allowed building height Freestanding: 20 feet when oriented at maximum tilt Building mounted: Shall not exceed the maximum allowed building height Building mounted: Shall not exceed the maximum allowed building height Freestanding: 20 feet when oriented at maximum tilt Building mounted: Shall not exceed the maximum allowed building height Freestanding: 20 feet when oriented at maximum tilt Television and Radio Antennae Not to exceed 12 feet above the roof Not to exceed 12 feet above the roof Not to exceed 12 feet above the roof Not to exceed 12 feet above the roof Not to exceed 12 feet above the roof Not to exceed 12 feet above the roof Not to exceed 12 feet above the roof NOTES: [1] The tower shall be located only in the rear yard, and set back at least 15 feet from any property line. However, necessary guy wires, anchors, and wires of less than 1/4 inch may be set back at least 3 feet from any rear or interior side property line. [2] On interior lots abutting directly on Twin Lake, a detached accessory garage, carport, shed, accessory dwelling unit, or workshop may be erected within the front setback area provided it does not encroach into the required front, side or corner side setback. [3] If the garage, carport, accessory dwelling unit, or workshop does not have an eave or overhang on the side or rear of the structure, the structure may be located to a distance of 3 feet from the side or rear property line, but the structure shall not encroach into a platted or dedicated easement. [4] If the vehicle entrance for a detached garage or carport faces a street or alley, the garage or carport shall be at least 20 feet from the corner side or rear property line. [5] For building-mounted solar energy systems, the collector surface and mounting devices shall not extend beyond the required setbacks on which the building is mounted. For freestanding solar energy systems, the system may not extend into the following setbacks when oriented at minimum design tilt: Front: 30 feet, but cannot be located closer to the street than the principal building; Side: 5 feet; Rear: 5 feet; Corner side: 10 feet. [6] For the purposes of this maximum height requirement, detached accessory buildings are defined as carports, detached garages, gazebos, noncommercial greenhouses, sheds and workshops. Some of these structures may not be allowed in every zoning district. ARTICLE X. Chapter V, Subsection 520.15, Subdivision 6, of the Crystal city code is hereby by amended by deleting the stricken material and adding the double underlined material as follows: 5.4 23 Subd. 6. Off-street parking space requirements. (1) Table 11 defines the number of parking spaces required for each use within the city. (2) The applicant may vary from the required number of parking spaces as provided in subdivision 8 of this section. (3) Within the TC district, no off-street parking spaces are required for non-residential development. Residential development shall provide a minimum of one space per unit, plus one space per ten units for visitor parking. Table 11: Parking Spaces by Use Use Type Minimum Maximum Residential Use Category Accessory dwelling units 1 space in addition to the number of spaces required for the principal building on the property Not Applicable Bed and breakfast establishments 2 spaces for the owner/occupant of the dwelling, at least one of which must be enclosed in a garage, plus 1 space per guest sleeping room Not Applicable Dwellings, one and two family 2 spaces per dwelling unit, one of which must be enclosed in a garage Not applicable Dwellings, multiple-family 2 spaces per dwelling unit, one of which must be enclosed in a garage [1] Not applicable Specialized care facilities 4 spaces, plus 1 space per 5 beds Not applicable Commercial Use Category Banquet halls or event centers See Public, Institutional, or Recreational Use Category Bowling alleys 4 spaces, plus 4 spaces for each lane Not applicable Funeral Homes 4 spaces, plus no less than 1 space per 3 seats in the main assembly hall, plus no less than 1 space per 300 square feet of gross floor area not used for seating. [3] 4 spaces, plus no more than 1 space per 2 seats in the main assembly hall, plus no less than 1 space per 200 square feet of gross floor area not used for seating. [3] Health and fitness club 4 spaces, plus no less than 300 square feet of gross floor area, not including court, gym Not applicable 5.4 24 Table 11: Parking Spaces by Use Use Type Minimum Maximum or pool area, plus 4 spaces per basketball court, plus 2 spaces per tennis or racquetball court, plus 1 space per 50 square feet of deck area for a swimming pool Hotel, Motel, Extended Stay Establishments 1 space per room or suite, plus 1 space per employee on the major shift. [2] Not applicable Office 4 spaces, plus no less than 1 space per 500 square feet of gross floor area 4 spaces, plus no more than 1 space per 250 square feet of gross floor area Restaurants and bars 4 spaces, plus no less than 1 space per 100 square feet of gross floor area 4 spaces, plus no more than 1 space per 50 square feet of gross floor area Retail Establishments and Personal Service 4 spaces, plus no less than 1 space per 500 square feet of gross floor area [4] 4 spaces, plus no more than 1 space per 250 square feet of gross floor area [4] Theaters or Auditoriums 4 spaces, plus no less than 1 space per 4 seats based on the cumulative design capacity of the assembly room or spaces 4 spaces, plus no more than 1 space per 2 seats based on the cumulative design capacity of the assembly room or spaces Vehicle, Boat, or Recreational Sales or Rental 4 spaces, plus 1 space per employee on the major shift. Such spaces are in addition to the vehicles parked for display Vehicle Fuel Sales 4 spaces, plus 2 spaces per service or repair stall if applicable, plus no less than 1 space per 300 square feet of building area used for the sale of goods or services 4 spaces, plus 2 spaces per service or repair stall if applicable, plus no more than 1 space per 150 square feet of building area used for the sale of goods or services Vehicle Wash or Detailing 1) Drive-through, staffed: 2 spaces, plus 1 space per employee on the major shift 2) Drive-through, not staffed: 2 spaces 3) Self-service: 2 spaces Industrial, Manufacturing, Research and Wholesale Use Category Manufacturing 4 spaces, plus no less than 1 space per 1,000 square feet of gross floor area 4 spaces, plus no more than 1 space per 500 square feet of gross floor area 5.4 25 Table 11: Parking Spaces by Use Use Type Minimum Maximum Warehouses 4 spaces, plus no less than 1 space per 3,000 square feet of gross floor area 4 spaces, plus no more than 1 space per 1,000 square feet of gross floor area Public, Institutional, or Recreational Use Category High School, college, university, or trade/business school 4 spaces, plus no less than 1 space per classroom, plus no less than 1 space per 2 students based on design capacity Not applicable Hospital Number of spaces as required per a parking study Number of spaces as required per a parking study Library 4 spaces, plus no less than 1 space per 400 square feet of gross floor area 4 spaces, plus no more than 1 space per 200 square feet of gross floor area Outdoor Recreational Facilities 10 spaces per acre of play field, plus 4 per basketball court, two space per tennis court, or 1 space per 50 square feet of deck area for a swimming pool Not applicable Banquet halls, event centers, Religious Institutions, or similar places where persons gather or assemble 4 spaces, plus no less than 1 space per 3 seats based on the cumulative design capacity of the assembly room or spaces 4 spaces, plus no more than 1 space per 2 seats based on the cumulative design capacity of the assembly room or spaces Schools, nursery or preschool, elementary and middle school 10 spaces, plus no less than 1 space per classroom and 1 space per 40 students based on designed capacity Not applicable Notes: 1. The minimum number of parking spaces for senior housing is 1 space per household unit, 50% of which shall be enclosed in a garage. 2. If applicable, 1 space per 4 person capacity shall be provided for conference rooms or other assembly spaces and 1 space shall be provided for a manager who resides on the property. 3. Motor vehicle stacking space shall also be provided for making up a funeral procession, although drive aisles in the parking lot may be used for stacking. 4. The parking requirement for retail sales and service establishments with more than 50% or more of gross floor area devoted to storage or warehouse shall be: 4 spaces, plus no less than 1 space per 500 nor more than 1 space per 250 square feet devoted to sales or service, plus no less than 1 space per 3,000 nor more than 1,000 square feet of storage. 5.4 26 ARTICLE XI. Chapter V, Subsection 520.17, Subdivision 2, of the Crystal city code is hereby amended by adding the double underlined material as follows: Subd. 2. Applicability. Except as provided for in this subsection, these requirements are applicable for subdivision or lot consolidation applications, site plans, conditional use permits, building permits, or other land disturbing activities on existing properties, except if this requirement is waived by the city engineer. ARTICLE XII. Chapter V, Subsection 520.17, Subdivision 4, of the Crystal city code is hereby amended by deleting the stricken material as follows: Subd. 4. Storm water management plan. When a subdivision, lot consolidation, site plan, or conditional use permit application is submitted, the applicant shall include a storm water management plan, unless this requirement is waived by the city engineer. The plan shall contain the following information. (a) Existing site map. A map of existing site conditions showing the site and immediately adjacent areas, including: (1) The street address, property identification number or legal description of the subject property; (2) North point, date, scale of drawing, and number of sheets; (3) Existing topography with a contour interval appropriate to the topography of the land but in no case having a contour interval greater than two feet; (4) A delineation of all streams, rivers, public waters and wetlands located on and immediately adjacent to the site, including depth of water, a description of all vegetation which may be found in the water, a statement of general water quality and any classification given to the water body or wetland by the Minnesota Department of Natural Resources, the Minnesota Pollution Control Agency, and/or the United States Army Corps of Engineers; (5) Location and dimensions of existing storm water drainage systems and natural drainage patterns on and immediately adjacent to the site delineating in which direction and at what rate storm water is conveyed from the site, identifying the receiving stream, river, public water, or wetland, and setting forth those areas of the unaltered site where storm water collects; (6) A description of the soils of the site, including a map indicating soil types of areas to be disturbed as well as a soil report containing information on the suitability of the soils for the type of development proposed and for the type of sewage disposal proposed and describing any remedial steps to be taken by the developer to render the soils suitable: (7) Vegetative cover and clearly delineating any vegetation proposed for removal; and 5.4 27 (8) 100-year floodplains, flood fringes and floodways. (b) Site construction plan. A site construction plan including: (1) Locations and dimensions of all proposed land disturbing activities and any phasing of those activities; (2) Locations and dimensions of all temporary soil or dirt stockpiles; (3) Locations of all proposed stormwater management facilities; (4) Locations and dimensions of all construction site erosion control measures necessary to meet the requirements of this section; (5) Schedule of anticipated starting and completion date of each land disbursing activity including the installation of construction site erosion control measures needed to meet the requirements of this section; and (6) Provisions for maintenance of the construction site erosion control measures during construction. (c) Plan of final site conditions. A plan of final site conditions on the same scale as the existing site map showing the site changes including: (1) Finished grading shown at contours at the same interval as provided above or as required to clearly indicate the relationship of proposed changes to existing topography and remaining features; (2) A delineation of any ponding, flowage or drainage easements, or other property interests, to be dedicated for stormwater management purposes; (3) For applications proposing infiltration or filtration as a stormwater management practice, identification, description, results of double-ring infiltrometer tests, and permeability and approximate delineation of site soils in both existing and proposed as-developed condition. (4) A landscape plan, drawn to an appropriate scale, including dimensions and distances and the location, type, size and description of all proposed landscape materials which will be added to the site as part of the development; (5) A drainage plan of the developed site delineating in which direction and at what rate storm water will be conveyed from the site and setting forth the areas of the site where storm water will be allowed to collect; (6) The proposed size, alignment and intended use of any structures to be erected on the site; and (7) A clear delineation and tabulation of all areas which shall be paved or surfaced, including a description of the surfacing material to be used. 5.4 28 ARTICLE XIII. City staff is authorized and directed to update the table of contents for Chapter V as may be needed and to make formatting and other non-substantive corrections as may be needed as part of incorporating the amendments adopted by this Ordinance into the Crystal city code. ARTICLE XIV. This ordinance is effective upon adoption and 30 days after publication. First Reading: ____________, 2020 Second Reading: __________, 2020 Council Adoption:_________, 2020 Publication: Effective Date: BY THE CITY COUNCIL Jim Adams, Mayor ATTEST: ____________________________ Christina Serres, City Clerk 5.4 AGENDA ECONOMIC DEVELOPMENT AUTHORITY OF THE CITY OF CRYSTAL WORK SESSION  TUESDAY, JUNE 16, 2020 IMMEDIATELY FOLLOWING THE 7:00 P.M. CITY COUNCIL MEETING CRYSTAL CITY HALL COUNCIL CHAMBERS 1. Call to order * 2. Roll call * 3. Update - EDA lot at 3240 Hampshire Ave. N. 4. Update - EDA lot at 4741 Welcome Ave. N. 5. Potential development at 5232-5256 West Broadway 6. Adjournment * *Items for which no materials are included in the packet ___________________________________________________________________________ FROM: John Sutter, Community Development Director DATE: June 11, 2020 TO: Anne Norris, City Manager (for June 16 EDA work session) SUBJECT: Update - EDA lot at 3240 Hampshire Ave. N. BACKGROUND This property is a remnant left over after the EDA sold 3244 Hampshire for new home construction in 2000. The adopted 2020 work program anticipated staff gathering information in 2020 then bringing this lot back to the EDA for possible action in early 2021. Staff has accelerated this process because we have been approached by a Crystal resident interested in this lot for a new home. They have a builder lined up, but they understand that they are not guaranteed to get the lot because it would be made available to any builder through an open Request for Proposals process. Staff sent a letter to the adjacent properties on Mar. 24 informing them that we would be exploring development feasibility this spring. Staff ordered a survey and soil borings (excerpts attached). OBSERVATIONS The west part of the EDA lot (on Hampshire) and the south half of east part (on Georgia) are not buildable due to soils and wetland issues. EDA could sell the west part separately to either adjacent owner at 3232 or 3244 Hampshire, or could hold that part to see if it ever becomes feasible to build. The north half of the east part of the EDA lot appears to be buildable. New home would face east and/or south, and would be addressed as 3241 Georgia. Builder would install driveway, water and sewer services from Georgia cul-de-sac. Staff will have financial feasibility information at the work session. If lots to north (3249 and 3255 Georgia) are to be developed in the future, then the street and city utility mains must be extended north at that time. Those lots are owned by the respective homeowners on Hampshire and neither has expressed a desire to develop their lots at this time. EDA STAFF REPORT 3240 Hampshire ANTICIPATED NEXT STEPS Plat the EDA property into two lots: Plat documents completed by surveyor - July 14 EDA reviews plat documents and authorizes application - July 21 Planning Commission public hearing - Aug. 10 City Council plat approval - Aug. 18 Seek proposals for purchase of 3241 Georgia lot for construction of a new home: Request for Proposals packet completed - July 14 EDA authorizes issuance of the RFP - July 21 RFP issued - July 22 Proposal deadline - Aug. 12 EDA public hearing and lot sale approval - Aug. 18 EDA DISCUSSION REQUESTED Staff requests that the EDA members discuss whether they agree with this approach. The EDA would not take action until July 21 after the plat and Request for Proposals packet are prepared. ___________________________________________________________________________ FROM: John Sutter, Community Development Director DATE: June 11, 2020 TO: Anne Norris, City Manager (for June 16 EDA work session) SUBJECT: Update - EDA lot at 4741 Welcome Ave. N. BACKGROUND  The EDA acquired and demolished a blighted 4-plex on the site in 2010 and has held the property for undetermined future development since then.  The house to the north at 4749 Welcome went through foreclosure in 2019 and was sold on March 29 for $122,111. The buyer is an investor who is remodeling the house and expects to put it on the market by the end of June.  The 2020 EDA work program anticipated waiting to see what happens with 4749 Welcome before deciding what to do with the lot at 4741 Welcome OBSERVATIONS  This property is 80’ wide and 176’ long, with an area of 0.32 acres (survey attached).  It is zoned and guided R-2 which would allow up to 7 units.  With the alley in back, there is the potential to do something creative here in terms of building design, style of units, etc. Could be a one-level double bungalow / side-by-side duplex, or a three-story apartment building with six units, or something in between. ANTICIPATED NEXT STEPS  Request for Proposals packet completed - July 14  EDA authorizes issuance of the RFP - July 21  RFP issued - July 22  Proposal deadline - Aug. 12  EDA public hearing and lot sale approval - Aug. 18 EDA DISCUSSION REQUESTED  Staff requests that the EDA members discuss whether they agree with this approach.  The EDA would not take action until July 21 after the Request for Proposals is prepared. EDA STAFF REPORT 4741 Welcome ___________________________________________________________________________ FROM: John Sutter, Community Development Director DATE: June 11, 2020 TO: Anne Norris, City Manager (for June 16 EDA work session) SUBJECT: Potential Development at 5232-5256 West Broadway (information item) PROPERTY INFORMATION  Former Dumark’s Auto site (buildings were demolished by owner in 2007).  Comprised of four parcels totaling 1.75 acres.  Presently listed for sale for $1,090,000.  Located in the Town Center redevelopment area. POTENTIAL DEVELOPMENT  A multifamily residential developer based in Ohio, Woda Cooper Companies (WCC), is negotiating a purchase of the site  WCC is a vertically-integrated real estate company that builds, holds and manages buildings for the long term. They do not typically sell their buildings after the develop them.  WCC is preparing a concept plan for a mixed-income apartment building on the site.  This would require rezoning from Industrial to TC-PD along with site & building plan review.  The maximum permitted density with TC-PD rezoning would be 130 units, but WCC anticipates that their proposal would have less than half that number of units.  At this time it is unknown whether WCC will request any financial assistance from the EDA. ANTICIPATED NEXT STEPS (Note: May not occur this quickly.)  Council work session to review development concept plan - July 9  Community open house to review development concept plan - July 14  Planning Commission public hearing - Aug. 10  City Council first reading - Aug. 18  City Council second reading - Sep. 1 EDA STAFF REPORT 5232-5256 West Broadway Welcome Woda Cooper Companies, Inc. develops, designs, constructs, and manages affordable housing communities. Our talented team of employees has broad expertise across the spectrum of affordable housing: urban and rural communities; senior and general occupancy communities; mid-rise, garden and single-family communities; and new construction, acquisition rehabilitation, and adaptive reuse developments. Since our beginning in 1990, we’ve taken a long-term approach to every community we develop and construct. But our work doesn’t end when the construction trailer is rolled away. Our company owns and manages over 300 communities and we work hard to keep our promise to make a positive contribution in every village, town, and city where our housing is located. We offer modern, amenity-packed and energy-efficient affordable communities that residents are proud to call home. We are pleased to highlight a few communities from our portfolio and invite you to contact our team to learn more. SERVICES Woda Cooper Companies, Inc.Woda Cooper Companies, Inc. owns and manages communities in the Midwest, Mid-Atlantic, and the Southeast. In addition to our main office in Columbus, Ohio, we have development offices in Savannah, Georgia; Indianapolis, Indiana; Shelbyville, Kentucky; Annapolis, Maryland; Mackinaw City, Michigan; Charlotte, North Carolina; and Norfolk, Virginia. MANAGEMENT Woda Management & Real Estate, LLC ARCHITECTURE PCI Design Group DEVELOPMENT Woda Cooper Development, Inc. CONSTRUCTION Woda Construction, Inc. 15 STATES David Cooper, Jr.David Cooper, Jr. Woda Cooper Companies, Inc. Jeffrey J. WodaJeffrey J. Woda Woda Cooper Companies, Inc. Over 100 certified green developments representing over 4,500 units built or under construction, including eight LEED Platinum certified properties, eighteen LEED Gold certified properties, and two Passive House properties. 12,000+ UNITS 300+ PROPERTIES OCCUPANCY RATE 96% LEED for Homes • Enterprise Green • EarthCraft Passive House • Net Zero Ready ENERGY STAR • EPA Indoor airPLUS ACCOMPLISHMENTS: • Consistently ranked among largest affordable housing developers in the country • Leadership roles in national affordable housing organizations • Routinely wins prestigious industry awards for excellence in development, construction and management • Certified Brownfield Redevelopment sites in six states • More than 20 historic renovations • Established company-wide Employee Stock Ownership Plan (ESOP) in 2018 GREEN COMMUNITIES Our goal is to maintain communities so they look brand new ten years after construction. AFFORDABLE PROPERTY SOLD IN HISTORY OF COMPANY 7 DEVELOPMENT OFFICES 1 ESOP WITH: 650+ EMPLOYEES PROGRAMS: • Low Income Housing Tax Credits • FHA insured loans, 221(d)(4) and 223(f) • USDA Rural Development 538 guaranteed loans • USDA Rural Development 515 direct loans • Public Housing Replacement Housing Factor Funding • HOME Investment Partnerships Program • State trust funds • Federal historic tax credits • State historic tax credits • Brownfield credits • Federal Home Loan Bank (“FHLB”) Affordable Housing Program funds • FHLB match funds • HUD’s Mark to Market program • Tax exempt bonds with 4% LIHTC credits • Tax Credit Assistance Program funds • Exchange funds or 1602 funds • Contract-based Section 8 housing assistance • Project-based rental assistance • 811 contracts • National Housing Trust Fund • Energy Credits • New Markets Tax Credits PORTFOLIO INCLUDES: • Senior affordable communities • Affordable multi-family apartments • Lease-to-own single family homes • Replacement public housing • Redeveloped communities • Mixed-use developments • Market rate and mixed-income 4141 Douglas Drive North • Crystal, Minnesota 55422-1696 Tel: (763) 531-1000 • Fax: (763) 531-1188 • www.crystalmn.gov Posted: June 12, 2020 City Council Work Session Agenda June 16, 2020 Immediately Following the City Council Meeting Council Chambers/Zoom Meeting 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 June 16, 2020 in the Council Chambers at City Hall, 4141 Douglas Dr. N., Crystal, Minnesota. I. Attendance Council Members Staff ____ Adams ____ Norris ____ Banks ____ Therres ____ Budziszewski ____ Gilchrist ____ Deshler ____ Revering ____ Kiser ____ Hubbard ____ LaRoche ____ Serres ____ Parsons II. Agenda The purpose of the work session is to discuss the following agenda item: 1. Public safety update. * III. Adjournment The work session adjourned at ______ p.m. *Denotes no supporting information included in the packet. 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.