2020.08.20 Work Session Packet
4141 Douglas Drive North • Crystal, Minnesota 55422-1696
Tel: (763) 531-1000 • Fax: (763) 531-1188 • www.crystalmn.gov
Posted: August 14, 2020
City Council
Work Session Agenda
August 20, 2020
6:30 p.m.
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 August 20, 2020 in the
Council Chambers at City Hall, 4141 Douglas Dr. N., Crystal, Minnesota.
I. Attendance
Council Members Staff
____ Adams ____ Norris
____ Banks ____ Therres
____ Budziszewski ____ McGann
____ Deshler ____ Sutter
____ Kiser ____ Ray
____ LaRoche ____ Serres
____ Parsons ____ Larson
____ Elholm
____ Revering
II. Agenda
The purpose of the work session is to discuss the following agenda items:
1. Continue 2021 – 2022 budget discussion.
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.
CITY OF CRYSTAL
CITY COUNCIL WORK SESSION
NOTICE OF MEETING BY TELEPHONE OR OTHER
ELECTRONIC MEANS
NOTICE IS HEREBY GIVEN that the City Council of the City of Crystal will hold a work
session on Thursday, August 20, 2020 at 6:30 p.m. at Crystal City Hall, 4141 Douglas Drive,
Crystal Minnesota.
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”) some members of the public may prefer to attend or participate in City Council
work sessions via telephone or other electronic means.
Topic: Crystal Council Work Session
Time: Aug 20, 2020 06:30 PM Central Time (US and Canada)
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Memorandum
DATE: August 13, 2020
TO: Mayor and City Council
FROM: Anne Norris, City Manager
SUBJECT: 2021 – 2022 Budget – Follow Up to August 6 Work Session
____________________________________________________________________
At its August 6 work session, the City Council reviewed the preliminary 2021 – 2022
budget. The goals for the 2021 – 2022 budget were:
- current service levels preserved;
- return to some sort of “normal” in 2021 in terms of community center rentals
and recreation program participations;
- capital fund contributions increase as planned for in the Long Term Plan; and
- utility rates and reconstruction continue as planned for the Utility Rate study.
Since starting the budget, we learned Crystal will be losing $233,000 in Local
Government Aid in 2021. This reduction is coming out of the capital fund (consistent
with the Council intent that fluctuations in Local Government Aid have minimal impact
on general fund operations). The Long Term Plan is being updated to reflect this
change but all current projects are anticipated to stay on schedule (police station, etc.)
To recap the preliminary 2021 budget and levy, the overall levy is an increase of 6.79%.
Of this, approximately $300,000 (2.47%) is to make up lost revenue due to lower
charges for services, licenses and permits, fines and forfeitures, etc. due to the
pandemic. Contributions to capital funds are increasing as planned for in the Long
Term Plan and make up approximately 1.4% of the levy increase. The balance of the
increase, just under 3%, is for operational increases.
Attached is the presentation for the August 20 work session which addresses the
property tax break down and utility bill questions asked at the last work session and
includes the slide with efforts and initiatives regarding the Council’s 4th priority, building
an inclusive community so all feel welcome, that was inadvertently omitted from the
original presentation. An updated Long Term Plan will be available at the work session.
Council consideration of the preliminary budget and levy is tentatively scheduled for the
September 1 City Council meeting.
Attach:
August 20, 2020
1.New Information
a)Property tax breakdown
b)Utility Bill comparison
c)EDA budget
2.2021/2022 Preliminary budget overview
3.Council Direction
Amount
Percent of
levy
increase Amount
Percent of
levy
increase
Operations 649,072$ 5.25%Lost Revenue 305,948$ 2.47%
Capital 173,843 1.40%Wage/benefits increase 338,301 2.73%
EDA 17,256 0.14%Inflationery increases 17,069 0.14%
Police additions 42,100 0.34%
Total Levy Increase 840,171$ 6.79%West Metro 58,250 0.47%
Election decrease (112,596) -0.91%
Capital increases 173,843 1.40%
EDA 17,256 0.14%
Total Levy Increase 840,171$ 6.79%
Summary Detail
NOTE: New Slide
NOTE: Updated slide
2020 2021 2020 to 2021 2020 to 2021 2020 to 2021 2020 to 2021
Increase % Increase Increase w/o % w/o IFS
Budget Proposed (Decrease)(Decrease)ISF Allocation Allocation
EXPENDITURES
General government 2,124,193$ 2,267,228$ 143,035$ 6.73%64,973$ 3.06%
Public safety 7,672,996 8,417,237 744,241 8.84%200,054 2.61%
Community Development 687,370 707,745 20,375 2.96%(6,772) -0.99%
Public works 2,562,263 3,071,311 509,048 16.57%36,848 1.44%
Recreation 1,733,204 2,188,530 455,326 20.81%75,192 4.34%
Interfund services transfer in 474,258 479,502 5,244 1.11%5,244 1.11%
TOTAL EXPENDITURES 14,780,026$ 16,652,051$ 1,872,025$ 11.24%370,294$ 2.51%
NOTE: New Slide
Crystal New Hope Golden Valley
Water 81.93$ 92.40$ 77.43$
Sewer 53.02 67.56 79.11
Storm 20.15 25.08 25.00
Streetlight 5.00 3.96 12.42
Recycling 11.25 11.25 16.00
Total Bill 171.35$ 200.25$ 209.96$
NOTE: New Slide
2019 2020 Adopted 2021 Proposed
Actual Budget Budget Budget
Revenue
Property Taxes and Special Assessments 281,635$ 288,399$ 300,000$ 310,000$
Charges for Services - - - -
Miscellaneous 2,000 28,000 - -
Interest Income 93,375 12,000 10,000 8,000
Total Revenue 377,010$ 328,399$ 310,000$ 318,000$
Expenditures
Personnel services 263,188$ 316,203$ 297,580$ 308,214$
Professional Services 15,370 41,000 20,000 20,000
Contractual Services 56,075 49,200 10,000 10,000
Internal Service Fund Charges - - 4,568 5,186
Printing 244 500 500 500
Miscellaneous 102,632 4,400 39,150 40,950
Transfer out 1,150,000 - - -
Prior period adjustment 295,000 - - -
Total Expenditures 1,882,509$ 411,303$ 371,798$ 384,850$
Net Revenue Over (Under) Appropriations (1,505,499)$ (82,904)$ (61,798)$ (66,850)$
Fund balance, January 1 5,436,833$ 3,931,334$ 3,848,430$ 3,786,632$
Fund balance, December 31 3,931,334$ 3,848,430$ 3,786,632$ 3,719,782$
2022 Proposed
Consistent with the direction from Council in
April
Preserve current (2020) service levels
Continue funding of capital as outlined in Long-
term plan
Utility rates consistent with 2018 rate study
Internal Service Funds
Must be intent to provide goods or services on
a cost-reimbursement basis
Charges to customers/departments intend to
recover full cost of providing goods/services
(break even over time)
Must use charges for services rather than
property taxes
Cannot have property tax allocation to Internal Service Funds
Replace by allocating costs to individual departments
2021 IFS Allocated Cost added to General Fund levy $1,362,495
2021 Building, Fleet and IT levy eliminated (1,362,495)
Net effect on overall property tax levy $ 0
Internal Service levy eliminated in 2021 and replaced by cost allocations to
individual departments.
Internal Service allocations have no impact on the levy increase
2020 Adopted
2020 %
Change
2021
Proposed
2021
Increase
(Decrease)
2021 %
Change
2022
Proposed
2022
Increase
(Decrease)
2022 %
Change
General Fund levy
General operations 10,143,522$ 4.40 %10,792,594$ 649,072$ 6.40 %11,332,029$ 539,435$ 5.00 %
Other allocations
Police Equipment Revolving 154,938 0.00 158,037 3,099 2.00 161,197 3,160 2.00
Park Improvement 358,914 44.54 480,511 121,597 33.88 606,999 126,488 26.32
Street Construction 110,144 0.00 114,550 4,406 4.00 119,132 4,582 4.00
Information Technology 159,179 0.00 160,171 992 0.62 161,773 1,602 1.00
Buildings 1,072,295 83.02 1,115,187 42,892 4.00 1,159,794 44,607 4.00
Fleet 85,680 0.00 86,537 857 1.00 87,402 865 1.00
Total General Fund levy 1,941,150 44.42 2,114,993 173,843 8.96 2,296,297 181,304 8.57
EDA 282,744 0.00 300,000 17,256 6.10 310,000 10,000 3.33
Total levy 12,367,416$ 9.03 %13,207,587$ 840,171$ 6.79 %13,938,326$ 730,739$ 5.53 %
% Increase from prior year
Fund
Percent or
Dollar
Increase Description
Street Capital Fund 4%Levy increase based on prior year Street Capital Fund
Levy ($4,406 increase for 2021)
Police Equipment
Revolving Fund (PERF)
2%Levy increase based on prior year PERF Levy ($3,099
increase for 2021)
Park Improvement
Fund
1%Levy increase based on total levy ($121,597 increase for
2021)
Building Fund 4%Allocation increase based on long-term plan projections
agreed to by Council ($42,892 increase for 2021)
Fleet 1%Allocation increase based on long-term plan projections
agreed to by Council ($857) increase for 2021
Information
technology
1%Allocation increase based on long-term plan projections
agreed to by Council ($992) increase for 2021
Water Rate 11%Based on 2018 Utility Rate Study
Sewer Rate 11%Based on 2018 Utility Rate Study
Storm Drainage $1.00 Per Quarter increase
Summary of General Operations Increases and (Decreases)
Non-tax Revenue
Special assessments (18,500)$
Charges for services (105,192)
Licenses and permits (26,950)
Fines and forfeits (32,000)
Interest earnings 30,488
Recreation (16,385)
Miscellaneous modifications (142,653)
Transfers 5,244
(305,948)$
Expenditures
Wages and benefits 338,301$
General Government excluding Elections 45,475
Elections (112,596)
Public Safety 100,350
Public Works (7,000)
Miscellaneous reductions (21,406)
343,124$
649,072$
General Operations
Non-tax Revenue increases (decreases)
Special assessments (18,500)$
Charges for services (47,192)
Licenses and permits (26,950)
School resource officer (33,000)
Fines and forfeits (32,000)
SAC charges (25,000)
Antenna charges 17,000
Interest earnings 30,488
Recreation (16,385)
Miscellaneous modifications (159,653)
Transfers 5,244
Total Non-tax Revenue increases (decreases)(305,948)
General operations
Expenditure increases (decreases)
Wages and benefits 338,301$
Human resources - professional services and service contracts 9,475
Assessing contract 26,000
Finance professional services 10,000
Police K-9 overtime 7,100
Police mental health 35,000
Elections (112,596)
Streets - salt (7,000)
Miscellaneous reductions (21,406)
West Metro Fire District - Council to consider on Aug. 18 58,250
Total Expenditure increases (decreases)343,124$
Total Non-tax General Fund Increase over 2020 (649,072)$
2019 2020 2021 2022
Actual Budget Proposed Proposed
REVENUES
Property taxes - operations 9,743,618$ 10,289,022$ 10,838,994$ 11,378,421$
Special assessments and other 52,000 52,000
Property taxes - Internal allocations 1,362,495 1,409,574
Licenses and permits 835,711 853,810 826,860 850,960
Intergovernmental revenues 1,907,764 1,787,339 1,777,489 1,777,489
Charges for services 811,940 891,402 846,711 863,853
Fines & forfeits 287,985 307,000 275,000 275,000
Investment income 116,464 94,512 125,000 125,000
Miscellaneous 69,675 82,683 68,000 68,000
TOTAL REVENUES 13,773,157 14,305,768 16,172,549 16,800,297
NOTE: Updated slide
2019 2020 2021 2022
Actual Budget Proposed Proposed
EXPENDITURES
General Government 2,227,790$ 2,124,193$ 2,267,228$ 2,329,399$
Public safety 7,335,302 7,672,996 8,417,237 8,806,887
Community Development 557,867 687,370 707,745 737,197
Public works 2,402,399 2,562,263 3,071,311 3,177,913
Recreation 1,678,233 1,733,204 2,188,530 2,254,086
TOTAL EXPENDITURES 14,201,591$ 14,780,026$ 16,652,051$ 17,305,482$
OTHER FINANCING SOURCES (USES)
Other - interfund services transfers in 458,861$ 474,258$ 479,502$ 505,185$
Other - transfer in - - - -
TOTAL OTHER FINANCING SOURCES (USES)458,861$ 474,258$ 479,502$ 505,185$
NET CHANGE IN FUND BALANCES 30,427$ -$ - 0$
FUND BALANCE, JANUARY 1 6,820,289 6,850,716 6,850,716 6,850,716
FUND BALANCE, DECEMBER 31 6,850,716$ 6,850,716$ 6,850,716$ 6,850,716$
NOTE: Expenditures include Internal Service Fund Allocations
Crystal Business Association
Beautification and branding (seasonal planters,
banners, litter clean-up along major corridors)
Implementation of Parks Master Plan (Becker, Welcome,
Iron Horse, North Lions)
New home construction
Birthday brigades
Code enforcement
Community events:
MN Night to Unite, Cheers to Crystal, Crystal Frolices,
Antique Car Run, Lions Corn Feed, Airport Open House
Public safety:
Adopt a hydrant, Crime Prevention Fund, domestic
assault prevention, home safety surveys, coffee/cone
with a cop, shop with a cop, Citizens Police Academy,
Junior police academy
Community police forums
Biennial budget
Long term plan –planning and saving for capital needs for
the future to have cash to pay for:
Police building
Utility and street replacement
Park fund
Inclusive play area –Becker Park
Joint Community Police Partnership –partner with
Hennepin County:
Multi-Cultural Advisory Committee (MAC)
Cadet program
Partnership with Cornerstone –Domestic Violence
Prevention and Advocacy
Chiefs Chat Podcast with Police and Fire chiefs
Mayor Jim Adams Podcast
Partnership with ISD 281 Adult Academic Education Center
Partnership with Hennepin County –mental health
programming (starting in 2021)
Water Rates 2020 2021 2022 2023 2024 2025 2026
Average quarterly bill (9,000 gallons)83.80$ 102.24$ 112.46$ 119.21$ 122.79$ 128.93$ 132.79$
Average quarterly dollar increase 15.11 18.44 10.22 6.75 3.58 6.14 3.87
Average annual dollar increase 60.45 73.75 40.90 26.99 14.31 24.56 15.47
Sewer Rates
Average quarterly bill (9,000 gallons)56.79$ 68.15$ 78.37$ 87.78$ 96.55$ 104.28$ 112.62$
Average quarterly dollar increase 9.47 11.36 10.22 9.41 8.77 7.78 8.34
Average annual dollar increase 37.88 45.44 40.88 37.64 35.08 30.92 33.36
Storm Rates
Quarterly bill 20.15$ 21.15$ 22.15$ 23.15$
Quarterly bill increase 1.00 1.00 1.00 1.00
Annual dollar increase 4.00 4.00 4.00 4.00
Updates made for 2021 –2026
Police Station preserved
Internal loan repayment schedule added
Internal service fund allocation schedule added
Relatively few changes
Utility rates as suggested in 2018 rate study
Full fee schedule in packet
August 20 Council work session to review 2021 –2022 budgets
September 1 Council to consider preliminary budget and levies
October 6 Public input presentation
December 1 Council to consider final budget and levies
Received $1,754,449
COVID expenditures under consideration
1.West Metro Fire-Rescue District
2.Public Safety
3.Technology
4.Other costs
a.Custodial cleaning
b.Supplies
Recommendation to Council on September 1, 2020
NOTE: additional slide added