2021.06.15 Council Meeting Packet
4141 Douglas Drive North • Crystal, Minnesota 55422-1696
Tel: (763) 531-1000 • Fax: (763) 531-1188 • www.crystalmn.gov
Posted: June 11, 2021
City Council Meeting Schedule
Tuesday, June 15, 2021
Time Meeting Location
6:15 p.m.
City Council work session to discuss:
1. Financial update – 2022 budget, American Rescue
Plan, and police fleet leasing.
2. City manager monthly check-in.
3. New business.
4. Announcements.
Council Chambers/Zoom
7:00 p.m. City Council meeting Council Chambers/Zoom
Immediately
following the City
Council meeting
Economic Development Authority (EDA) meeting Council Chambers/Zoom
Immediately
following the EDA
meeting
Continuation of City Council work session, if necessary Council Chambers/Zoom
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.
The public may monitor and participate in the meeting by connecting to it through one of the methods
identified below.
Topic: Crystal Council Work Session, Council Meeting, EDA Meeting and Council Work Session (if necessary)
Time: Jun 15, 2021 06:15 PM Central Time (US and Canada)
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4141 Douglas Drive North • Crystal, Minnesota 55422-1696
Tel: (763) 531-1000 • Fax: (763) 531-1188 • www.crystalmn.gov
Posted: June 11, 2021
City Council Work Session Agenda
Tuesday, June 15, 2021 at 6:15 p.m.
Council Chambers/Zoom
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 on Tuesday, June 15, 2021 at _____ p.m. in the
Council Chambers at City Hall, 4141 Douglas Dr. N., Crystal, Minnesota. If the agenda items are not
completed in time for the regular City Council meeting at 7 p.m., the meeting will be continued and
resumed immediately following the Economic Development Authority meeting which follows the
City Council regular meeting. The public may also monitor and participate in the meeting by
connecting via Zoom, through one of the methods identified on the City Council Meeting Schedule.
I. Attendance
Council members Staff
____ Kiser ____ Norris
____ LaRoche ____ Therres
____ Parsons ____ Gilchrist
____ Adams ____ Elholm
____ Banks ____ Larson
____ Budziszewski ____ Ray
____ Cummings ____ Revering
____ Sutter
____ Serres
II. Agenda
The purpose of the work session is to discuss the following agenda items:
1. Financial update - 2022 budget, American Rescue Plan, and police fleet leasing.
2. City manager monthly check-in.
3. New business. *
4. Announcements. *
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
June 15, 2021
2022 Budget
American Rescue Plan
Police Fleet Leasing
General Fund reserves
Health insurance premiums to remain at 2021 rates
Workers compensation insurance anticipated increase: 10–
15%
Insurance increases anticipated
Property: 5-10%
Liability: 5-12%
Auto: 3-7%
Union contracts open
American Rescue Funds may be used to replace lost
revenues
Utility rates consistent with 2018 rate study
Exact funding unknown however; anticipated
funding $2M
Funding to be received in two distributions
First distribution yet this summer
Second distribution 12 months after first
distribution
Eligible Uses Non-eligible Uses
COVID-19 mitigation and prevention
Medical expenses
Behavioral health care
Cannot be used to directly or indirectly to offset tax
reductions or delay a tax or tax increase
Payroll for public safety employees Depositing into pension funds
Expenses to improve public health programs to
address the pandemic As a non-federal match for other federal programs
Responding to negative economic impacts Payment of outstanding debt
Housing and neighborhoods Contingency or rainy-day funds, or to replenish
reserves
Addressing educational disparities
Premium pay for essential workers
General revenue replacement
Investments in water, sewer, or broadband
infrastructure
*Information taken from City approved Long Term
Plan
Lease over purchase savings
through 2030 $181,805
Additional vehicles replaced by leasing
(7 vehicles at cost of $55,000 each)$385,000
Total savings $566,805
2021 2022 2023 2024 2025 2026 2027 2028 2029 2030
Proposed Proposed Estimated Estimated Estimated Estimated Estimated Estimated Estimated Estimated
Item Cost Amounts Amounts Amounts Amounts Amounts Amounts Amounts Amounts Amounts Amounts
Capital Outlay
Public Safety - Fleet 156,000$ 208,000$ 196,500$ 165,000$ 310,000$ 205,000$ 205,000$ 180,000$ 290,000$ 180,000$
Public Safety - Fleet Equipment 18,000 24,000 12,000 18,000 - - 6,000 18,000 24,000 -
174,000 232,000 208,500 183,000 310,000 205,000 211,000 198,000 314,000 180,000
# Totalled vehicles 2 2 2 2 2 2 2 2 2 2
LMCIT Insurance deductible 50,000 50,000 50,000 50,000 50,000 50,000 50,000 50,000 50,000 50,000
Replacement vehicle costs 110,000 110,000 110,000 110,000 110,000 110,000 110,000 110,000 110,000 110,000
Total Replacement Cost, if totalled 60,000 60,000 60,000 60,000 60,000 60,000 60,000 60,000 60,000 60,000
Total Capital Outlay per year 234,000$ 292,000$ 268,500$ 243,000$ 370,000$ 265,000$ 271,000$ 258,000$ 374,000$ 240,000$
# of vehicle acquired 3 4 4 3 6 4 4 3 5 3
2021 2022 2023 2024 2025 2026 2027 2028 2029 2030
Proposed Proposed Estimated Estimated Estimated Estimated Estimated Estimated Estimated Estimated
Item Cost Amounts Amounts Amounts Amounts Amounts Amounts Amounts Amounts Amounts Amounts
Capital Outlay
Fleet and Equipment (Annual Lease Amt)92,379 139,308 175,740 241,116 241,116 241,116 241,116 241,116 241,116 241,116
New Car Pyament from Prior YR Totalled - 2,024 2,024 2,024 2,024 2,024 2,024 2,024 2,024 2,024
92,379 141,332 177,764 243,140 243,140 243,140 243,140 243,140 243,140 243,140
# Totalled vehicles 2 2 2 2 2 2 2 2 2 2
LMCIT Insurance deductible 50,000 50,000 50,000 50,000 50,000 50,000 50,000 50,000 50,000 50,000
New Car Payment 2,024 2,024 2,024 2,024 2,024 2,024 2,024 2,024 2,024 2,024
Total Replacement Cost, if totalled 52,024 52,024 52,024 52,024 52,024 52,024 52,024 52,024 52,024 52,024
Total Capital Outlay per year 144,403$ 193,356$ 229,788$ 295,164$ 295,164$ 295,164$ 295,164$ 295,164$ 295,164$ 295,164$
# of vehicle acquired 10 4 3 5 1 10 4 3 5 1
2020 Unassigned Fund Balance 7,405,222$
2021 General Fund Expenditure Budget 16,652,051$
Required Reserve - 45% of 2021 Expenditure Budget 7,493,423$
General Fund Reserve deficit (88,201)$
4141 Douglas Drive North • Crystal, Minnesota 55422-1696
Tel: (763) 531-1000 • Fax: (763) 531-1188 • www.crystalmn.gov
CITY MANAGER WORK PLAN
MONTHLY CHECK IN – JUNE 2021
Objective 1 – Policy Facilitation – strategic planning for continued
implementation of Council priorities:
o Thriving Business Climate
▪ Open To Business assistance available
▪ Information on various business assistance programs provided
to CBA and other Crystal businesses
▪ Crystal now participating in MCES SAC deferral program
▪ Applying for Hennepin County façade improvement grant
o Create Strong Neighborhoods
▪ Code enforcement – on-going
▪ Implementation of Master Parks System Plan improvements –
on going; Frolics planning for Becker and Welcome underway
▪ Home improvement loans/rebates available through CEE- on-
going
o Fiscally sound and stable policies and practices
▪ Long term financial planning on-going
▪ Financial update at 6/15/21 work session
o Build inclusive community so all feel welcome
▪ Just Deeds initiative being used to remove discriminatory
covenants from property titles
Objective 2 - Continue to invest in long term plan/saving for capital projects
o Monitoring fiscal impact of pandemic on budget and planning for use of
CARES and ARP funds
o Police station project – getting ready for demolition to start – early July
Objective 3 - Coordinate community conversations regarding equity and
inclusion
o First community conversation 6/23/21
▪ Mayor Adams’ podcast with Dr. Ramon Pastrano of ImpactLives
done as an intro to the 6/23 conversation
Objective 4 - Evaluate operational expectations in light of lessons learned from
pandemic adjustments
o Elected officials and commissions back to in-person meetings, public
still can access virtually
Page 1 of 4
4141 Douglas Drive North • Crystal, Minnesota 55422-1696
Tel: (763) 531-1000 • Fax: (763) 531-1188 • www.crystalmn.gov
Posted: June 11, 2021
City Council Meeting Agenda
Tuesday, June 15, 2021
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. Appearances
3.1 Police Chief Stephanie Revering will present awards to Crystal police officers.
4. Consent Agenda
The Council will consider the following items, which are routine and non-controversial in
nature, in a single motion:
4.1 Approval of the minutes from the following meetings:
a. The City Council work session on June 1, 2021.
b. The City Council meeting on June 1, 2021.
4.2 Approval of the list of license applications submitted by the city clerk to the City Council, a
list that is on file in the office of the city clerk.
4.3 Approval of a resolution accepting a donation of $1,000 from the VFW Post 494 for the
Crystal Little League ASL.
4.4 Approval of the following items for Crystal Frolics, contingent upon receipt of pending
license information:
a. A temporary on-sale liquor license at Becker Park for July 23 - 24, 2021, submitted by
OMNI Brewing, Co.
b. A temporary on-sale liquor license at Welcome Park for July 22 - 25, 2021, submitted by
West Metro Fire-Rescue Relief Association.
c. A permit for a fireworks display at Welcome Park for Friday, July 23, 2021, submitted by
Hollywood Pyrotechnics, Inc.
d. Approval of a resolution for a lawful gambling permit at Welcome Park for July 22 – 25,
2021, submitted by Crystal Lions.
Page 2 of 4
e. Temporary closure of portions of 47th Ave. N. from July 22 – 25, 2021, for city and
volunteer staff vehicle parking, the fireworks display and waterball competition hosted
by West Metro Fire-Rescue Relief Association.
4.5 Approval of a resolution cancelling special assessments on MAC-owned properties at 5218
– 56th Ave. N. and 5900 Lakeland Ave. N.
5. Open Forum
(The City Council appreciates hearing from citizens about items of concern and desires to set
aside time during each meeting for Open Forum. To provide ample opportunity for all, speaking
time is limited to three minutes and topic discussion is limited to ten minutes. The Mayor may,
as presiding officer, extend the total time allowed for a topic. By rule, no action may be taken
on any item brought before the Council during Open Forum. The Council may place items
discussed during Open Forum onto subsequent council meeting agendas).
6. Public Hearing
6.1 The Mayor will open a public hearing to receive comment, and the Council will consider
approval of a new off-sale liquor license for DKK, LLC d/b/a Crystal Wine and Spirits located
at 4920 West Broadway.
The owner of the liquor store at 4920 West Broadway passed away and his widow is
applying for a new liquor license to continue to operate the store. After taking public
comment, recommend approval of the new liquor license for 4920 West Broadway.
7. Regular Agenda
7.1 The Council will receive the 2020 annual financial report from Bergan KDV.
Finance Director Jean McGann and representatives of Bergan KDV will present the 2020
annual financial report. After hearing the presentation, the Council should accept the
2020 annual financial report.
7.2 The Council will consider approval of disbursements over $25,000 submitted by the finance
department to the City Council, a list that is on file in the office of the finance department.
Recommend approval of disbursements over $25,000.
7.3 The Council will consider a new multiple animal license at 6617 Dudley Ave. N., submitted
by Ken Waytashek.
The resident at 6617 Dudley Ave. N. is applying for a multiple animal license to keep four
dogs and one cat. The owner also currently has six chickens and has been notified that
the Code allows for up to four chickens (chickens are not part of the multiple animal
license). Prior to considering the multiple animal license, the Council should take any
comments from neighbors. Recommend approval of the multiple animal license.
7.4 The Council will consider a resolution approving variances from the front and north side
setbacks at 3556 Major Ave. N.
Page 3 of 4
Glenn Hammer, on behalf of Great Buy Homes, is proposing to purchase the vacant EDA-
owned lot at 3556 Major Ave. N. to construct a new single-family home. Prior to
purchasing the property, Mr. Hammer is requesting setback variances for the new home
on this very narrow lot. The lot is 35.5’ wide and 128’ deep and there has never been a
home on the property. The requested variances are to reduce the front setback from 30’
to 28’ and the north side setback from 10’ to 8’. The Planning Commission will hold a
public hearing on these variances at its June 14 meeting and the recommendation will be
available at the June 15 meeting.
7.5 The Council will consider a resolution approving a lot consolidation plat for Adath
Cemetery at 3700 Winnetka Ave. N.
The cemetery owners are consolidating two underlying parcels into a single lot for
construction of a pavilion on the property. Recommend approval of the resolution
authorizing this lot consolidation.
7.6 The Council will consider approval of a resolution authorizing execution of a grant with the
State of Minnesota for grant funds for the police station project and committing the
balance of funds for the project.
During one of last year’s special sessions, Crystal received a $4 million grant towards the
cost of the police station. Before the city can access the grant money, a grant agreement
needs to be executed and the city needs to commit to pay for the balance of the project.
Recommend approval of the resolution authorizing execution of the agreement and
committing to pay the balance of the project costs.
7.7 The Council will consider a resolution approving a contract for trails and concrete work at
Valley Place and Bass Lake parks.
The capital budget includes funds for concrete work, including trails, at Bass Lake and
Valley Place parks. There are also funds from the Hennepin County Youth Sports
program towards the cost of the concrete work at Valley Place Park. Recommend
approval of the resolution authorizing execution of the contract with low bidder, Odesa
II, LTD.
7.8 The Council will consider a resolution authorizing the contract for the fiber optic
connection to the Medicine Lake water tower.
As with the 2020 Joint Water Commission (JWC) project to connect the north water
tower to the fiber optic network, this proposed project will connect the Medicine Lake
tower to the network. The JWC is paying all the costs for this project and Crystal is acting
as the project manager.
7.9 The Council will consider a symbolic resolution recognizing Pride month.
As this agenda item is a symbolic resolution, there is no staff recommendation.
7.10 The Council will consider a symbolic resolution recognizing Juneteenth.
Page 4 of 4
As this agenda item is a symbolic resolution, there is no staff recommendation.
7.11 The Council will consider a symbolic resolution or proclamation recognizing National Day of
Prayer.
As this agenda item is a symbolic resolution, there is no staff recommendation.
7.12 The Council will consider a symbolic resolution recognizing Independence Day (July 4).
As this agenda item is a symbolic resolution, there is no staff recommendation.
8. Announcements
a. The Crystal Airport Open House is back and is Sunday, June 20, 8 a.m. – 3 p.m.
b. All are invited to attend the Community Conversation on Equity and Inclusion on
Wednesday, June 23, at 6 p.m. For more information and to register, go to
www.crystalmn.gov.
c. City offices are closed Monday, July 5 in observance of the Independence Day (July 4)
holiday.
d. The City Council will hold a work session on Thursday, July 8 at 6:30 p.m. in the Council
Chambers at City Hall and via Zoom.
e. The next City Council meeting is Tuesday, July 20, at 7 p.m. in the Council Chambers at City
Hall and via Zoom.
f. 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.
9. Adjournment
Have a great weekend – stay cool; see you at Tuesday’s meeting.
Crystal City Council meeting minutes June 1, 2021
Page 1 of 4
1.Call to Order
Pursuant to due call and notice thereof, the regular meeting of the Crystal City Council was held on
June 1, 2021 at 7:00 p.m. in the Council Chambers at City Hall, 4141 Douglas Dr. N. in Crystal,
Minnesota. Mayor Adams called the meeting to order.
Roll Call
Mayor Adams asked the city clerk to call the roll for elected officials. Upon roll call, the following
attendance was recorded:
Council members present in the Council Chambers at City Hall: Cummings, LaRoche, Parsons, Adams,
Banks, and Budziszewski.
Council Member Kiser was absent.
City staff present in the Council Chambers at City Hall: City Manager A. Norris, Assistant City
Manager/HR Manager K. Therres, City Attorney T. Gilchrist, Police Chief S. Revering, Community
Development Director J. Sutter, and City Clerk C. Serres.
Pledge of Allegiance
Mayor Adams led the Council and audience in the Pledge of Allegiance.
2.Approval of Agenda
The Council considered approval of the agenda.
Moved by Council Member LaRoche and seconded by Council Member Banks to approve the agenda.
Motion carried.
3.Appearance
Police Chief Stephanie Revering introduced the City of Crystal’s new K-9, Ace, and his handler, Officer
Callan.
4.Consent Agenda
The Council considered the following items, which are routine and non-controversial in nature, in a
single motion:
4.1 Approval of the minutes from the following meetings:
a.The City Council work session on May 13, 2021.
b.The City Council work session on May 18, 2021.
c.The City Council meeting on May 18, 2021.
4.2 Approval of the list of license applications submitted by the city clerk to the City Council, a list
that is on file in the office of the city clerk.
4.3 Approval of Resolution No. 2021-49, accepting a donation of $250 from Crystal Lions for the
Crystal Airport Open House.
4.4 Approval of Resolution No. 2021-50, reporting on state performance measures.
4.1(a)
Crystal City Council meeting minutes June 1, 2021
Page 2 of 4
Moved by Council Member Parsons and seconded by Council Member Cummings to approve
the consent agenda.
Motion carried.
5. Open Forum
The following persons addressed the Council:
• Jeff Kolb, in favor of targeted residential picketing ordinance.
• Frank Neubecker, not in favor of target residential picketing ordinance.
6. Regular Agenda
6.1 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 Banks and seconded by Council Member LaRoche to approve the list
of disbursements over $25,000.
Voting aye: Cummings, LaRoche, Parsons, Adams, Banks, and Budziszewski.
Absent, not voting: Kiser.
Motion carried.
6.2 The Council considered the second reading of an ordinance amending Chapter 5 (Unified
Development Code) of the City Code and a resolution authorizing the summary publication of the
ordinance.
Community Development Director John Sutter addressed the Council.
Moved by Council Member LaRoche and seconded by Council Member Budziszewski to adopt the
following ordinance:
ORDINANCE NO. 2021 – 02
AN ORDINANCE MAKING VARIOUS AMENDMENTS
TO CHAPTER V OF THE CRYSTAL CITY CODE
And further, that this is the second and final reading.
Voting aye: Cummings, LaRoche, Parsons, Adams, Banks, and Budziszewski.
Absent, not voting: Kiser.
Motion carried.
Moved by Council Member LaRoche and seconded by Council Member Budziszewski to adopt the
following resolution:
RESOLUTION NO. 2021 – 51
RESOLUTION APPROVING SUMMARY LANGUAGE
FOR PUBLICATION OF ORDINANCE NO. 2021 – 02
Voting aye: Cummings, LaRoche, Parsons, Adams, Banks, and Budziszewski.
Absent, not voting: Kiser.
Motion carried, resolution declared adopted.
4.1(a)
Crystal City Council meeting minutes June 1, 2021
Page 3 of 4
6.3 The Council considered the second reading of an ordinance amending Chapter 9 of the City Code
regarding targeted residential picketing and a resolution authorizing the summary publication of
the ordinance.
City Attorney Troy Gilchrist addressed the Council.
Moved by Council Member Budziszewski and seconded by Council Member LaRoche to adopt the
following ordinance:
ORDINANCE NO. 2021 – 03
AN ORDINANCE REVISING CHAPTER IX OF THE CRYSTAL
CITY CODE REGARDING TARGETED RESIDENTIAL PICKETING
And further, that this is the second and final reading.
By roll call and voting aye: Adams, Banks, LaRoche, and Parsons.
Voting nay: Budziszewski and Cummings.
Absent, not voting: Kiser.
Motion carried.
Moved by Council Member Budziszewski and seconded by Council Member LaRoche to adopt the
following resolution:
RESOLUTION NO. 2021 – 52
RESOLUTION APPROVING SUMMARY LANGUAGE
FOR PUBLICATION OF ORDINANCE NO. 2021 - 03
By roll call and voting aye: Banks, LaRoche, Parsons, and Adams.
Voting nay: Budziszewski and Cummings.
Absent, not voting: Kiser.
Motion failed due to super majority vote requirement per Minnesota Statutes.
6.4 The Council considered authorizing execution of the Labor Agreement between the City of
Crystal and Law Enforcement Labor Services (LELS), Local 44 for 2021 – 2022.
Assistant City Manager/HR Manager Kim Therres addressed the Council.
Moved by Council Member Banks and seconded by Mayor Adams to approve the Labor
Agreement between the City of Crystal and Law Enforcement Labor Services (LELS), Local 44 for
2021 – 2022.
Voting aye: Cummings, LaRoche, Parsons, Adams, Banks, and Budziszewski.
Absent, not voting: Kiser.
Motion carried.
6.5 The Council considered a resolution requiring refuse haulers to make organics collection an
option for Crystal customers.
City Manager Anne Norris addressed the Council.
4.1(a)
Crystal City Council meeting minutes June 1, 2021
Page 4 of 4
Moved by Council Member Budziszewski and seconded by Council Member LaRoche to adopt the
following resolution:
RESOLUTION NO. 2021 – 53
RESOLUTION CREATING RULES REQUIRING REFUSE HAULERS
TO MAKE ORGANICS COLLECTION AN OPTION
FOR CRYSTAL CUSTOMERS
Voting aye: Cummings, LaRoche, Parsons, Adams, Banks, and Budziszewski.
Absent, not voting: Kiser.
Motion carried, resolution declared adopted.
7. Announcements
The Council made announcements about upcoming events.
8. Adjournment
Moved by Council Member Budziszewski and seconded by Council Member LaRoche to adjourn the
meeting.
Motion carried.
The meeting adjourned at 7:54 p.m.
_____________________________________
Jim Adams, Mayor
ATTEST:
__________________________________
Chrissy Serres, City Clerk
4.1(a)
Crystal City Council work session minutes June 1, 2021
Pursuant to due call and notice given in the manner prescribed by Sectio n 3.01 of the City Charter, the
work session of the Crystal City Council was held at 6:15 p.m. on June 1, 2021 in the Council Chambers
at City Hall, 4141 Douglas Dr. N., Crystal, Minnesota. Mayor Adams called the meeting to order.
I.Attendance
The city clerk recorded the attendance for city council members and staff:
Council members present in the Council Chambers at City Hall: Cummings, LaRoche, Parsons,
Adams, Banks, and Budziszewski.
Council Member Kiser was absent.
City staff present in the Council Chambers at City Hall: City Manager A. Norris, Assistant City
Manager/HR Manager K. Therres, City Attorney T. Gilchrist, Police Chief S. Revering, Community
Development Director J. Sutter, and City Clerk C. Serres.
II.Agenda
The Council and staff discussed the following agenda item s:
1.Update from US Congresswoman Omar.
2.Police statue.
3.City Council Rules – proclamations.
4.New business.
5.Announcements.
Mayor Adams recessed the meeting at 7:00 p.m. to continue discussion of the agenda items to after
the adjournment of the regular City Council meeting.
The work session resumed at 8:37 p.m.
III.Adjournment
The work session adjourned at 9:16 p.m.
________________________________
Jim Adams, Mayor
ATTEST:
Chrissy Serres, City Clerk
4.1(b)
Page 1 of 1
City of Crystal Council Meeting
June 15, 2021
Applications for City License
Massage Therapist
Yipeng Yan, Natural Wellness Spa, 5524 West Broadway, Crystal, MN 55428
Rental – New
5401 Louisiana Ave N – HPA US1 LLC (Conditional)
Rental – Renewal
4041 Brunswick Ave N – Serenity Village Community Church
5127 Edgewood Ave N – Haelan House LLC
4219 Georgia Ave N – IH3 Minnesota LP (Conditional)
5001 Jersey Ave N – IH2 Property Illinois LP (Conditional)
3415 Major Ave N – IH3 Property Minnesota LP (Conditional)
3341 Nevada Ave N 4102 – Seitzer Four LLC (Conditional)
5640 Perry Ave N – IH2 Property Illinois LP (Conditional)
2971 Sumter Ave N – Steven Johnson (Conditional)
5409 Scott Ave N – New Covenant Properties LLC (Conditional)
3633 Vera Cruz Ave N – Nelson Family Foundation Real Estate Holdings LLC (Conditional)
5915 47th Ave N – HPA II Borrower 2019-1 LLC
5701 56th Ave N – Harold Creek
4824 59th Ave N – HPA II Borrower 2019-1 LLC (Conditional)
4.2
CITY OF CRYSTAL
RESOLUTION NO. 2021 -
RESOLUTION ACCEPTING A DONATION FROM VFW POST 494
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
VFW Post 494 Crystal Little League ASL $1,000
And BE IT FURTHER RESOLVED that the Crystal City Council sincerely thanks the VFW Post 494
for their generous donation.
Dated: June 15, 2021
By: __________________________
Jim Adams, Mayor
ATTEST:
__________________________
Chrissy Serres, City Clerk
4.3
4141 Douglas Drive North • Crystal, Minnesota 55422-1696
Tel: (763) 531-1000 • Fax: (763) 531-1188 • www.crystalmn.gov
Memorandum
DATE: June 9, 2021
TO: Mayor and City Council
Anne Norris, City Manager
FROM: John Elholm, Recreation Director
SUBJECT: Crystal Frolics - 2021
Crystal Frolics will be back in 2021. With new improvements at Becker Park, the event will look
different than in past years. This will be the first-year significant portions of the event will be
held in two parks at the same time. The traditional softball tournament and related food, beer
and vendor offerings will be held at Welcome Park; while stage entertainment, bounce houses,
vendor fair, food trucks and craft beer will be at Becker Park. There will not be a carnival as in
past years; and the fireworks at Becker Park will be replaced with an LED light show on the
stage Saturday night. Fireworks will be held at Welcome Park on Friday night.
With this new event structure, the Crystal Frolics Committee Inc. and the City of Crystal are
working together more than in the past. However, there are still a number of items that require
approval from the City Council. This includes:
•A temporary on-sale liquor license at Becker Park on July 23 and 24, 2021 submitted by
OMNI Brewing, Co.
•A temporary on-sale liquor license at Welcome Park from July 22 through July 25, 2021
submitted by West Metro Fire-Rescue Relief Association.
•A permit to sell pull tabs at Welcome Park from July 22 through July 25, 2021 submitted
by the Crystal Lions Club.
•A permit for a fireworks display at Welcome Park beginning at 10:00 p.m. on Friday, July
23, 2021, with a rain date of July 24, 2021; submitted by Hollywood Pyrotechnics, Inc.
•To temporarily close portions of 47th Ave. N. from July 22 – 25, 2021, for city and
volunteer staff vehicle parking, the fireworks display and the waterball competition hosted
by West Metro Fire-Rescue Relief Association.
4.4
Stage entertainment will be at Becker Park, and will be overseen by the recreation department.
The tentative line-up for the main stage is:
Friday, July 23
5:00 p.m. - Cornerstone Church Band
6:30 p.m. – SkitzoFonik
Saturday, July 24
Noon - Jolly Pops
1:30 p.m. - Pan Dimensions
3:00 p.m. - Two Sundays
5:00 p.m. - Desdamona, DJ Kool Akiem, and See More Perspective (together)
7:00 p.m. - Socaholix
The city is working with EMI Audio from Robbinsdale for sound production at the main stage on
Friday night and Saturday. In addition, there will be a second stage west of the play area on
Saturday afternoon. This stage will primarily feature local entertainment geared toward children.
Other activities being offered over the weekend (subject to change) include:
• Search for the Crystal Ball.
• Crystal Frolics Softball Tournament from Thursday night to Sunday afternoon (Welcome,
Bassett Creek and Valley Place Parks).
• Service organization food tent from Thursday night to Sunday afternoon (Welcome Park).
• Baggo Tournament on Thursday night (Welcome Park).
• Bingo Friday night to Sunday afternoon (Welcome Park).
• Food trucks from Friday night to Sunday afternoon (Becker Park).
• Large inflatables on Friday night and Saturday (Becker Park).
• 5K run on Saturday morning (Bassett Creek Park).
• Free fitness classes beginning at 9:00 a.m. on Saturday (Becker Park).
• A business and craft fair on Saturday from 10:00 a.m. to 5:00 pm (Becker Park).
• Firefighter waterball competition on Saturday afternoon (Welcome Park).
• The annual Family Fun Festival with a performance by Kidsdance on Sunday from 11:00
a.m. -- to 2:00 p.m. (Becker Park).
The latest information on Crystal Frolics is available at: www.crystalfrolics.org.
4.4
4.4
4.4
4.4
CITY OF CRYSTAL
RESOLUTION NO. 2021 -
APPROVING LAWFUL GAMBLING AT
WELCOME PARK, 5598 46TH AVE. N.
JULY 22 - 25, 2021
WHEREAS, Minnesota Statutes Chapter 349 provides that organizations licensed by the
Minnesota Gambling Control Board (Board) must also obtain from the Board a premises permit
for the conduct of lawful gambling at a specific location. The law also provides that the
premises permit will not be issued by the Board unless the organization submits a resolution of
the City Council approving the premises permit; and
WHEREAS, the Crystal Lions has submitted an application for an off-site gambling event
to be held at Welcome Park, 5598 46th Ave. N. in Crystal, Minnesota on July 22 - 25, 2021.
NOW, THEREFORE, BE IT RESOLVED that the Crystal City Council hereby approves such
premises permit.
BE IT FURTHER RESOLVED that the city clerk is authorized and directed to supply a
certified copy of this resolution to the Board and applicant listed above.
Adopted by the Crystal City Council this 15th day of June, 2021.
________________________________
Jim Adams, Mayor
ATTEST:
_______________________________
Chrissy Serres, City Clerk
4.4
May 19, 2021
City Council
City of Crystal
4141 Douglas Drive
Crystal, MN 55422
Dear City Council,
The Crystal Frolics would like your assistance for our City celebration this year. It will
be held July 22-25. We invite all of you to attend.
We would like to close 47th Ave N east of Welcome Ave. (runs between the CenturyLink
building & our “super” field and dead ends at the Robbinsdale Public Works facility) for
the entirety of the weekend. We will use it part of the time for City vehicle & Frolics
volunteer parking.
We plan to have fireworks on Friday night (July 23) at 10:00 p.m. That portion of 47th
would be included in the safety zone. Also, we need the assistance of the Police and
Fire Departments to ensure a safe display (we will also have 2 security personnel at the
set-up site).
We will also be using that section of road on Saturday afternoon for the waterball
competition hosted by the WMFRA.
Thank you, in advance, for your cooperation and that of the city staff.
Sincerely,
Lynn Haney, President
Crystal Frolics Committee, Inc.
www.crystalfrolics.org
612-839-8538
4.4
4.5
4.5
COUNCIL STAFF REPORT
Public Hearing: June 15, 2021 Council Meeting
Consideration of a new off-sale liquor license for
DKK, LLC d/b/a Crystal Wine and Spirits
DATE: June 9, 2021
FROM: City Clerk Chrissy Serres
TO: Mayor and City Council
City Manager Anne Norris
CC: Police Chief Stephanie Revering
City Attorney Troy Gilchrist
RE: Consideration of a new off-sale liquor license for DKK, LLC d/b/a Crystal Wine and
Spirits located at 4920 West Broadway
Background
DKK, LLC d/b/a Crystal Wine and Spirits has applied for a new off-sale liquor license under new
ownership as a result of the untimely death of the previous business owner.
Application review
The qualifications of the applicant meet Crystal City Code Section 1200 and staff has reviewed
the license application. A background check was completed by the Police Department and Chief
Revering finds no reason to prohibit issuance of the license.
A hearing notice was published in the Sun Post on June 3, 2021.
Requested Council action
Staff recommends approval of the new off-sale liquor license for DKK, LLC d/b/a Crystal Wine
and Spirits located at 4920 West Broadway.
6.1
City of Crystal
Audit Presentation
June 15, 2021
7.1
Independent Auditor’s Report
●Management is responsible for the financial statements
●Auditor is responsible to express an opinion on the financial statements
●Unmodified Opinion –best opinion an auditor is able to offer
●Provides assurance that the financial statements are fairly presented in all material
respects
2
7.1
Independent Auditor’s Report
●Minnesota Legal Compliance Audit
No findings
●Internal Control Findings
Lack of Segregation of Accounting Duties
3
7.1
General Fund
4
Budget and Actual General Fund Budget Actual Variance Percentage
Revenue
Taxes and assessments 11,606,176$ 11,455,248$ (150,928)$ -1.3%
Intergovernmental 1,787,339 3,637,704 1,850,365 103.5%
Licenses, permits, fines, and charges for services 2,050,862 1,192,432 (858,430) -41.9%
Other 178,545 224,078 45,533 25.5%
Total revenues 15,622,922 16,509,462 886,540 5.7%
Expenditures
General government 2,239,739 2,244,492 4,753 0.2%
Public safety 8,194,542 8,263,068 68,526 0.8%
Public works 1,617,226 1,549,456 (67,770) -4.2%
Parks and recreation 3,323,950 2,895,125 (428,825) -12.9%
Community development 721,723 670,574 (51,149) -7.1%
Total expenditures 16,097,180 15,622,715 (474,465) -2.9%
Excess of revenues
(under) expenditures (474,258) 886,747 1,361,005 -287.0%
Net other financing sources (uses) 474,258 474,467 209 0.0%
Change in fund balance - 1,361,214 1,361,214 N/A
Beginning fund balance 6,996,436 6,996,436 - 0.0%
Ending fund balance 6,996,436$ 8,357,650$ 1,361,214$ 19.5%
7.1
General Fund
5
Balance
7.1
General Fund
6
Balance as a Percentage of Budget
7.1
General Fund
7
Revenues
7.1
General Fund
8
2020 Expenditures
7.1
General Fund
9
2019 Expenditures
7.1
General Fund
10
Expenditures
7.1
Enterprise Funds
11
Water Utility
7.1
Enterprise Funds
12
Sanitary Sewer Utility
7.1
Enterprise Funds
13
Storm Drainage Utility
7.1
Enterprise Funds
14
Street Lights Utility
7.1
Per Capita Revenues and Expenditures
15
Per Capita Trends
2019** 2020***
Intergovernmental revenues per capita 201$ 170$ 211$
Property taxes per capita ****512 486 529
Total revenue per capita 1,105 931 957
Expenditures per capita
(less debt service and capital)735 653 702
Total expenditures per capita 1,205 957 1,000
Population 23,287 23,262
* Statewide data obtained from the office of the State Auditor's 2019 Minnesota City Finances Report
** 2019 per capita data uses 2018 population forecast from Metropolitan Council
*** 2020 per capital data uses 2019 population forecast from the Metropolitan Council
**** Property taxes exclude tax increments
Average-Cities
20,000 and 100,000
Population
City of Crystal
Between
2019 Statewide *
7.1
Tax Capacity, Certified Tax Levy, and Tax Rate
16
7.1
17
17
Questions?
Andrew Grice, CPA
952-563-6862
Andrew.Grice@berganKDV.com
7.1
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18
7.1
19
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7.1
COMPREHENSIVE
ANNUAL FINANCIAL REPORT
OF THE
CITY OF CRYSTAL,
MINNESOTA
For the Year Ended
December 31, 2020
Prepared by
City of Crystal Finance Department
AEM Financial Solutions, Finance Director
7.1
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 Net Position – Proprietary Funds 42
Statement of Revenues, Expenses, and Changes in Fund Net Position
Proprietary Funds 44
Statement of Cash Flows – Proprietary Funds 46
Statement of Fiduciary Net Position 48
Statement of Changes in Fiduciary Net Position 48
Notes to Financial Statements 49
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
7.1
City of Crystal
Table of Contents
Page
Supplementary Information
Nonmajor Governmental Funds 105
Combining and Individual Fund Financial Statements and Schedules
Combining Balance Sheet – Nonmajor Governmental Funds 106
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances –
Nonmajor Governmental Funds 110
Schedule of Revenues, Expenditures, and Changes in Fund Balance –
Budget and Actual – TIF Districts - Special Revenue 114
Schedule of Revenues, Expenditures, and Changes in Fund Balance –
Budget and Actual – EDA - Special Revenue 115
Schedule of Revenues, Expenditures, and Changes in Fund Balance –
Budget and Actual – Street Reconstruction - Capital Projects 116
Schedule of Revenues, Expenditures, and Changes in Fund Balance
Budget and Actual – Park Improvement - Capital Projects 117
Schedule of Revenues, Expenditures, and Changes in Fund Balance –
Budget and Actual – Police Equipment Revolving - Capital Projects 118
Combining Statement of Net Position - Internal Service Funds 119
Combining Statement of Revenues, Expenditures, and Changes in Net Position –
Internal Service Funds 120
Combining Statement of Cash Flows – Internal Service Funds 121
Statistical Section (Unaudited) Table Page
Net Position by Component 1 126
Change in Net Position 2 128
Fund Balances of Governmental Funds 3 132
Changes in Fund Balances of Governmental Funds 4 134
Taxable and Estimated Market Values of Taxable Property 5 136
Property Tax Rates – Direct and Overlapping Governments 6 137
Principal Property Taxpayers 7 138
Property Tax Levies and Collations 8 139
Legal Debt Margin Information 9 140
Ratios of Outstanding Debt by Type 10 142
Ratios of General Bonded Debt Outstanding 11 143
Direct and Overlapping Governmental Activities Debt 12 144
Demographic and Economic Statistics 13 145
Principal Employers 14 146
Full-Time City Government Employees by Function 15 147
Operating Indicators by Function 16 148
Capital Asset Statistics by Function 17 150
7.1
7.1
1
City of Crystal
Elected Officials and Administration
December 31, 2020
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
AEM Financial Solutions City Finance Director Appointed
Christina Serres City Clerk Appointed
Kennedy and Graven, Chartered City Attorney Appointed
Chestnut Cambronne PA City Prosecutor Appointed
7.1
2
City of Crystal
Organizational Chart
December 31, 2020
7.1
3
4141 Douglas Drive North • Crystal, Minnesota 55422-1609
Tel: (763) 531-1000 • Fax: (763) 531-1188 • www.crystalmn.gov
June 7, 2021
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, 2020, 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 Bergan KDV, 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, 2020, 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, 2020, 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.
7.1
4
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.
Profile of Government
The City, incorporated in 1960, is a northwestern suburb of the Minneapolis/St. Paul metropolitan
area, lying adjacent to the City of Minneapolis. The City lies wholly within Hennepin County and
encompasses an area of 5.8 square miles and serves a population of approximately 23,000
residents. The City is empowered to levy a property tax on both real and personal properties located
within its boundaries. While it also is empowered by state statute to extend its corporate limits by
annexation, the City is a completely developed community and is bordered on all sides by other
incorporated communities.
The City operates under the Council-Manager form of government. Policy-making and legislative
authority are vested in a governing council (City Council) consisting of the mayor and six other
members. The City Council is responsible, among other things, for passing ordinances, adopting
the budget, appointing committees, and hiring both the City Manager and the City Attorney. The
City Manager is responsible for carrying out the policies and ordinances of the City Council and
for overseeing the day-to-day operations of the City. The City Council is elected on a non-partisan
basis. Council members serve four-year staggered terms, with three council members elected every
two years. The mayor is also elected to serve a four-year term. The six council members are elected
by section and ward; the mayor is elected at large.
The City provides its residents and businesses with a full range of services, including police
protection, the construction and maintenance of streets and other infrastructure, recreational
activities, building and housing inspection, health inspection, and planning and code enforcement.
In addition, the City operates five enterprises for water, sanitary sewer, storm drainage, street
lighting, and recycling services.
Fire protection services are provided by a joint venture with the West Metro Fire-Rescue District,
and water services are provided by a joint venture with the Golden Valley, Crystal, and New Hope
Joint Water Commission. Additional information on these joint ventures can be found in the notes
to the financial statements.
Housing and redevelopment activities are provided through a legally separate Economic
Development Authority (EDA). Its governing board is comprised of the City council members and
the City has operational responsibility of the EDA, meaning it manages the EDA's activities in
essentially the same manner in which it manages its own programs and departments. Therefore, it
has been included as an integral part of the City's financial statements.
The annual budget serves as the foundation for the City's financial planning and control. In
addition, the government maintains budgetary controls. The objective of budgetary controls is to
ensure compliance with legal provisions embodied in the annual budget approved by the city
council. The level of budgetary control (i.e. the level at which expenditures cannot legally exceed
the budgeted amount) is at the fund level for all fund types, with the exception of the General Fund,
which is at the department level. Budget-to-Actual comparisons are provided in this financial
report for each individual governmental fund for which an annual budget has been adopted.
7.1
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 23,262.
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,
8.49% from 2017 to 2018, and 6.13% from 2019 to 2020. 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.
In 2020, six new single-family homes were built on lots previously sold by the City or its EDA.
Going into 2021, the City has one lot available for a 4-unit building and one lot available for a
single-family home, and private owners have two lots for sale. It is anticipated that these lots will
be sold and built upon in 2021-2022.
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.
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 fund designed to rebuild streets, along with utilities as
needed, add new curb/gutter/sidewalk, and add storm sewer.
7.1
6
FACTORS AFFECTING ECONOMIC CONDITION (CONTINUED)
Long-term Financial Planning (Continued)
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. A new police station will be under construction in 2021 and 2022.
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 79.7% of the General Fund's revenue in
2020. 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, 2019.
In order to be awarded a Certificate of Achievement, a government must publish an easily readable
and efficiently organized comprehensive annual financial report. This report must satisfy both
accounting principles generally accepted in the United States of America and applicable legal
requirements.
A Certificate of Achievement is valid for a period of one year only. We believe that our current
comprehensive annual financial report continues to meet the Certificate of Achievement Program's
requirements and we are submitting it to the GFOA to determine its eligibility for another
certificate.
7.1
7
Acknowledgements
The preparation of this report could not have been accomplished without the efficient and
dedicated services of the staff of the finance department. We would like to express our appreciation
to all members of the department for their assistance and contributions to the preparation of this
report. Due credit also should be given to the mayor and the City Council for their interest and
support in planning and conducting the operations of the government in a responsible and
progressive manner.
Respectfully submitted,
Anne L. Norris
City Manager
7.1
8
7.1
9
7.1
10
7.1
11
Independent Auditor's Report
Honorable Mayor and Members
of the City Council
City of Crystal
Crystal, Minnesota
Report on the Financial Statements
We have audited the accompanying financial statements of the governmental activities, the business-
type activities, each major fund, and the aggregate remaining fund information of the City of Crystal,
Minnesota, as of and for the year ended December 31, 2020, and the related notes to financial
statements, which collectively comprise the City's basic financial statements as listed in the Table of
Contents.
Management's Responsibility for the Financial Statements
The City of Crystal's management is responsible for the preparation and fair presentation of these
financial statements in accordance with accounting principles generally accepted in the United States of
America; this includes the design, implementation, and maintenance of internal control relevant to the
preparation and fair presentation of financial statements that are free from material misstatements,
whether due to fraud or error.
Auditor's Responsibility
Our responsibility is to express opinions on these financial statements based on our audit. We did not
audit the financial statements of the West Metro Fire-Rescue District nor the Golden Valley, Crystal,
New Hope Joint Water Commission, joint ventures of the City which are disclosed in the notes to the
City's financial statements, and in which the City reports an equity interest of $1,131,737 and
$4,858,486, respectively. The financial statements of the District and Commission were audited by other
auditors whose reports thereon have been furnished to us and our opinion, insofar as it relates to the
amounts disclosed for the District and Commission, is based on the report of the other auditors. We
conducted our audit in accordance with auditing standards generally accepted in the United States of
America. Those standards require that we plan and perform the audit to obtain reasonable assurance
about whether the financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in
the financial statements. The procedures selected depend on the auditor's judgment, including the
assessment of the risks of material misstatement of the financial statements, whether due to fraud or error.
In making those risk assessments, the auditor considers internal control relevant to the City's preparation
and fair presentation of the financial statements in order to design audit procedures that are appropriate in
the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the City's
internal control. Accordingly, we express no such opinion. An audit also includes evaluating the
appropriateness of accounting policies used and the reasonableness of significant accounting estimates
made by management, as well as evaluating the overall presentation of the financial statements.
7.1
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, 2020, and the respective changes in financial position and where applicable, cash flows,
thereof, and the respective budgetary comparison for the General Fund for the year then ended in
accordance with accounting principles generally accepted in the United States of America.
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 the Governmental
Accounting Standards Board (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's basic financial statements. The introductory section, combining and
individual fund financial statements and schedules and statistical section are presented for purposes of
additional analysis and are not a required part of the basic financial statements.
7.1
13
Other Matters (Continued)
Other Information (Continued)
The combining and individual fund financial statements and schedules are the responsibility of
management and were derived from and relate directly to the underlying accounting and other records
used to prepare the basic financial statements. Such information has been subjected to the auditing
procedures applied in the audit of the basic financial statements and certain additional procedures,
including comparing and reconciling such information directly to the underlying accounting and other
records used to prepare the basic financial statements or to the basic financial statements themselves,
and other additional procedures in accordance with auditing standards generally accepted in the United
States of America. In our opinion, the combining and individual fund financial statements and schedules
are fairly stated, in all material respects, in relation to the basic financial statements as a whole.
The introductory section and statistical section have not been subjected to the auditing procedures
applied in the audit of the basic financial statements and accordingly, we do not express an opinion or
provide any assurance on them.
Other Reporting Required by Government Auditing Standards
In accordance with Government Auditing Standards, we have also issued our report dated June 7, 2021,
on our consideration of the City of Crystal's internal control over financial reporting and on our tests of
its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other
matters. The purpose of that report is solely to describe the scope of our testing of internal control over
financial reporting and compliance and the results of that testing, and not to provide an opinion on the
effectiveness of internal control over financial reporting or on compliance. That report is an integral part
of an audit performed in accordance with Government Auditing Standards in considering City of
Crystal's internal control over financial reporting and compliance.
Minneapolis, Minnesota
June 7, 2021
7.1
14
7.1
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, 2020. 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 $119,688,202. Of this amount, $35,494,921 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 $2,371,864. Governmental activities experienced a $253,732
increase in net position from operations while business-type activities experienced a $2,118,132 increase
in net position from operations.
At the end of the fiscal year, total fund balance for the General Fund was $8,357,650, or 53.50% 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
$3,022,952 during the fiscal year. The City's net OPEB obligation decreased by $691,037.
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 the City's assets plus deferred outflows of
resources and liabilities plus deferred inflows of resources, with the difference between the two reported
as net position. Over time, increases or decreases in net position may serve as a useful indicator of
whether the financial position of the City is improving or deteriorating.
The Statement of Activities presents information showing how the City's net position changed during the
most recent fiscal year. All changes in net position are reported as soon as the underlying event giving rise
to the change occurs, regardless of the timing of related cash flows. Thus, revenues and expenses are
reported in this statement for some items that will only result in cash flows in future fiscal periods (e.g.,
uncollected taxes and earned but unused vacation leave).
7.1
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, streetlights, 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 nine 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, Debt Service, and Street Reconstruction funds, all of which are
considered to be major funds. Data from the other six governmental funds are combined into a single
aggregated presentation. Individual fund data for each of these non-major governmental funds is provided
in the form of combining statements elsewhere in this report.
7.1
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, streetlights, 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 internal service funds to account for its self-
insurance, fleet, information technology, and city buildings 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, streetlights, and recycling operations, all of which are reported as major
funds of the City.
Fiduciary Funds
Fiduciary funds are used to account for resources held for the benefit of parties outside the government.
Fiduciary funds are not reflected in the government-wide financial statements because the resources of
those funds are not available to support the City's own programs. The accounting used for fiduciary funds
is much like that used for proprietary funds.
Notes to Financial Statements
The notes provide additional information that is essential to a full understanding of the data provided in
the government-wide and fund financial statements.
Other Information
Required Supplementary Information concerning the City's progress in funding its obligation to provide
pension and OPEB benefits to its employees is presented immediately following the notes to the financial
statements.
Combining and individual fund statements and schedules for nonmajor funds are presented immediately
following the Required Supplementary Information.
7.1
City of Crystal
Management's Discussion and Analysis
18
GOVERNMENT-WIDE FINANCIAL ANALYSIS
Net Position
The City has 58.59% 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 11.75% of the City's net position represents resources that are subject to external
restrictions on how they may be used. The remaining balance of 29.66% 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:
2020 2019 2020 2019 2020 2019
Current and Other Assets 48,620,326$ 52,010,431$ 8,584,471$ 8,585,181$ 57,204,797$ 60,595,612$
Equity interest in joint venture 1,131,737 1,276,450 4,858,486 4,621,447 5,990,223 5,897,897
Capital assets 61,217,485 62,204,131 21,760,477 19,815,262 82,977,962 82,019,393
Total assets 110,969,548 115,491,012 35,203,434$ 33,021,890 146,172,982$ 148,512,902
Deferred Outflows of Resources 2,570,834 3,418,110 68,884 56,147 2,639,718 3,474,257
Long-Term liabilities
outstanding 22,363,512 24,909,778 809,749 903,213 23,173,261 25,812,991
Other liabilities 905,119 1,683,396 489,777 309,258 1,394,896 1,992,654
Total liabilities 23,268,631 26,593,174 1,299,526 1,212,471 24,568,157 27,805,645
Deferred Inflows of Resources 4,418,310 6,716,239 138,031 148,937 4,556,341 6,865,176
Net Position
Net investment
in capital assets 48,365,123 46,233,147 21,760,477 19,815,262 70,125,600 66,048,409
Restricted 14,067,681 17,072,361 - - 14,067,681 17,072,361
Unrestricted 23,420,637 22,294,201 12,074,284 11,901,367 35,494,921 34,195,568
Total net position 85,853,441$ 85,599,709$ 33,834,761 31,716,629$ 119,688,202$ 117,316,338$
Changes in Net Position
Governmental Activities Business-Type Activities Total
7.1
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 2020 and 2019 follows:
2020 2019 2020 2019 2020 2019
Revenues
Program revenues -
Charges for services 1,192,432$ 2,218,671$ 8,935,363$ 7,918,273$ 10,127,795$ 10,136,944$
Operating grants and
contributions 887,111 761,960 240,825 2,560,212 1,127,936 3,322,172
Capital grants and
contributions 1,763,000 2,146,495 105,750 - 1,868,750 2,146,495
General revenues -
Property taxes 12,699,857 11,619,642 12,699,857 11,619,642
Intergovernmental 3,555,089 2,025,682 - - 3,555,089 2,025,682
Grants and contributions
not restricted to
specific programs - - - - - -
Other 1,532,594 1,128,143 255,079 148,899 1,787,673 1,277,042
Total revenues 21,630,083 19,900,593 9,537,017 10,627,384 31,167,100 30,527,977
Expenses
General government 2,622,345 4,523,764 - - 2,622,345 4,523,764
Public safety 8,533,972 7,585,509 - - 8,533,972 7,585,509
Public works 5,675,261 4,479,566 - - 5,675,261 4,479,566
Parks and recreation 3,126,917 3,093,691 - - 3,126,917 3,093,691
Community development 1,552,016 1,398,666 - - 1,552,016 1,398,666
Interest on long-term debt 340,097 462,218 - - 340,097 462,218
Water - - 3,362,825 3,094,824 3,362,825 3,094,824
Sanitary sewer - - 2,317,049 2,164,837 2,317,049 2,164,837
Storm drainage- - 725,016 1,539,162 725,016 1,539,162
Street lights - - 194,991 151,732 194,991 151,732
Recycling - - 344,747 334,947 344,747 334,947
Total Expenses 21,850,608 21,543,414 6,944,628 7,285,502 28,795,236 28,828,916
Change In Net Position
Before transfers (220,525) (1,642,821) 2,592,389 3,341,882 2,371,864 1,699,061
Transfers 474,257 4,154,441 (474,257) (4,154,441) - -
Change In Net Position 253,732 2,511,620 2,118,132 (812,559) 2,371,864 1,699,061
Net Position - beginning of year 85,599,709 83,088,089 31,716,629 32,529,188 117,316,338 115,617,277
Net Position - end of year 85,853,441$ 85,599,709$ 33,834,761$ 31,716,629$ 119,688,202$ 117,316,338$
Governmental Activities Business-Type Activities Total
Changes in Net Position
7.1
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 $253,732, or 0.30%,
accounting for 6.68% of the total increase in the City's net position.
Business-type Activities
Business-type activities increased the City's business-type net position by $2,118,132, or 6.68%,
accounting for 89.30% 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 12.01% for the sanitary sewer utility, which
increased rates charged on average from $47.33 per quarter for residential properties in 2019 to
$53.01 per quarter in 2020.
The City Council approved a rate increase of 5.22% for the storm drainage utility, which increased
rates charged from $19.15 per quarter for residential properties in 2019 to $20.15 per quarter in
2020. In addition, the storm drainage utility rate per residential equivalency factor (per acre) for
commercial users increased by 5.22%, this increased the quarterly factor from $95.75 in 2019 to
$100.75 in 2020.
7.1
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
$9,000,000
General
government
Public safety Public works Parks and
recreation
Community
development
Interest on
long-term debt
2020 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
2019 Expenses and Program Revenues - Governmental Activities
Expenses Revenues
7.1
City of Crystal
Management's Discussion and Analysis
22
REVENUES BY SOURCE
Capital grants and
contributions
8%
Charges for
services
6%
Operating grants
and
contributions
4%
Property taxes
59%
Intergovernmental
16%
Unrestricted
investment
earnings
6%
2020 Revenues by Source - Governmental Activities
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
7.1
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
5,000,000
Water Sanitary Sewer Storm drainage Street lights Recycling
2020 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
4,500,000
Water Sanitary Sewer Storm drainage Street lights Recycling
2019 Expenses and Program Revenues - Business Type Activities
Expenses Revenues
7.1
City of Crystal
Management's Discussion and Analysis
24
REVENUES BY SOURCE
Charges for
services
94%
Operating grants
and contributions
2%
Unrestricted
investment
earnings
3%
2020 Revenues by Source - Business Type Activities
Charges for
services
75%
Operating grants
and contributions
24%
Unrestricted
investment
earnings
1%
2019 Revenues by Source - Business Type Activities
7.1
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
$27,671,236, a decrease of $8,055,126 compared to the prior year.
Approximately 26.76% of the total amount ($7,405,222) constitutes unassigned fund balance, which is
available for spending at the government's discretion. The remainder of fund balance has been classified
as nonspendable ($26,398), restricted ($5,618,412), committed ($14,546,590), and assigned ($74,614).
The General Fund is the main operating fund of the City. At the end of the fiscal year total fund balance
was $8,357,650. Unassigned fund balance was $7,405,222, $926,030 was committed for compensated
absences, and $26,398 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 53.50% 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 $1,361,214 in the fund balance of the General Fund during the current fiscal
year. Total revenues were $886,540 higher than the final budget. Intergovernmental revenues were higher
than budget, while charges for services, fines and forfeitures, licenses and permits, and special
assessments were lower than the final budget. Actual expenditures were $474,465 lower than the final
budget. This is largely due to recreation facilities and programs being shut down during the pandemic.
The EDA Fund recorded a decrease of $5,393 in its fund balance during the current fiscal year. The fund
balance of $2,438,443 was committed for economic development projects.
The Debt Service Fund has a total fund balance of $4,506,534, all of which is restricted for the payment
of debt service. The net decrease in fund balance during the current fiscal year was $1,574,438. 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 $24,262 in its fund balance during the current
fiscal year. All of the fund balance of $6,803,180 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 $12,074,284 at the end of the fiscal year.
The water, sewer, storm drainage, streetlights, and recycling utility funds reported increases in net
position from operations of $1,183,962, $290,714, $630,320, $13,122 and $14, respectively.
7.1
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 amended by $1,317,154 during the year. Revenues provided a
positive budget variance while expenditures provided a negative budget variance. Total revenues were
$886,540 higher 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, while
intergovernmental revenue was higher than budget. Actual expenditures were $474,465 lower than the
final budget. General government and public safety expenses were higher than budget, but 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, 2020,
are $82,977,963. This balance represents a net increase of $958,570 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 $3,022,952, or 17.90%, 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
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 $62,635,000. The City currently has no outstanding G.O.
debt.
Economic Factors and Next Year's Budgets and Rates
Economic factors affect the preparation of annual budgets. The following factors were considered in
preparing the City's budget for the 2020 fiscal year:
The 2020 budget includes a 9.03% tax levy increase. This will be supplemented by increases in
other revenues to cover an inflationary increase of 3.77% the operating budget.
In 2018, the City completed a utility rate study that produced a modified rate structure. Changes to
fixed fees for sewer charges being based on water consumption, increases in the tiered water fees
and an increase in storm water fees will result in varying increases to residential and commercial
users.
7.1
City of Crystal
Management's Discussion and Analysis
27
FINANCIAL ANALYSIS OF THE CITY'S FUNDS (CONTINUED)
Requests for Information
Questions concerning any of the information provided in this report or requests for additional information
should be addressed to:
City of Crystal
Attn: Finance Director
4141 Douglas Drive N.
Crystal, MN 55422
7.1
28
7.1
29
BASIC FINANCIAL STATEMENTS
7.1
City of Crystal
Statement of Net Position
December 31, 2020
Governmental
Activities
Business-Type
Activities Total
Assets
Cash and investments (including cash equivalents) 36,872,441$ 5,759,336$ 42,631,777$
Cash with fiscal agent 65,795 - 65,795
Accrued interest 74,525 - 74,525
Accounts receivable 182,549 1,648,874 1,831,423
Delinquent taxes receivable 235,521 - 235,521
Special assessments receivable 10,640,067 373,399 11,013,466
Due from other governments 214,030 739,031 953,061
Inventory 9,012 40,967 49,979
Prepaid items 17,386 22,864 40,250
Land held for resale 309,000 - 309,000
Equity interest in joint venture 1,131,737 4,858,486 5,990,223
Capital assets (net of accumulated depreciation,
where applicable)
Land 6,860,536 759,062 7,619,598
Buildings and structures 10,667,608 - 10,667,608
Improvements other than buildings 2,957,452 191,813 3,149,265
Machinery and equipment 3,188,405 1,032,727 4,221,132
Office equipment and furnishings 364,075 - 364,075
Software 13,532 27,482 41,014
Vehicles and trailers 1,622,896 - 1,622,896
Infrastructure 34,590,959 17,463,484 52,054,443
Construction in progress 952,022 2,285,909 3,237,931
Total assets 110,969,548 35,203,434 146,172,982
Deferred Outflows of Resources
Pension-related deferred outflows of resourecs 2,294,038 39,661 2,333,699
OPEB-related deferred outflows of resources 276,796 29,223 306,019
Total deferred outflows of resources 2,570,834 68,884 2,639,718
Liabilities
Accounts and other current liabilities 706,273 489,777 1,196,050
Interest payable 127,339 - 127,339
Unearned revenue 71,507 - 71,507
Noncurrent liabilities
Due within one year 1,829,170 53,070 1,882,240
Due in more than one year 11,949,222 34,675 11,983,897
Net pension liability, due in more than one year 6,969,795 551,466 7,521,261
Total OPEB liability, due in more than one year 1,615,325 170,538 1,785,863
Total liabilities 23,268,631 1,299,526 24,568,157
Deferred Inflows of Resources
State aid related deferred inflows of resources 950,079 - 950,079
Pension-related deferred inflows of resources 2,530,257 39,004 2,569,261
OPEB-related deferred inflows of resources 937,974 99,027 1,037,001
Total deferred inflows of resources 4,418,310 138,031 4,556,341
Net Position
Net investment in capital assets 48,365,123 21,760,477 70,125,600
Restricted for
TIF projects 1,038,382 - 1,038,382
Debt service 12,955,803 - 12,955,803
Special projects 73,496 - 73,496
Unrestricted 23,420,637 12,074,284 35,494,921
Total net position 85,853,441$ 33,834,761$ 119,688,202$
See notes to financial statements. 30
7.1
Program RevenuesExpensesCharges for ServicesOperating Grants and ContributionsCapital Grants and ContributionsGovernmental ActivitiesBusiness-Type ActivitiesTotalGovernmental activities General government 2,622,345$ 181,700$ 7,538$ 35,103$ (2,398,004)$ -$ (2,398,004)$ Public safety 8,533,972 204,252 728,642 - (7,601,078) - (7,601,078) Public works 5,675,261 - 141,400 1,660,390 (3,873,471) - (3,873,471) Recreation 3,126,917 154,555 9,531 - (2,962,831) - (2,962,831) Community development 1,552,016 651,925 - 67,507 (832,584) - (832,584) Interest on long-term debt 340,097 - - - (340,097) - (340,097) Total governmental activities 21,850,608 1,192,432 887,111 1,763,000 (18,008,065) - (18,008,065) Business-type activities Water 3,362,825 4,442,177 237,039 - - 1,316,391 1,316,391 Sanitary sewer 2,317,049 2,679,871 3,502 52,250 - 418,574 418,574 Storm drainage 725,016 1,271,999 284 53,500 - 600,767 600,767 Street lights 194,991 193,029 - - - (1,962) (1,962) Recycling 344,747 348,287 - - - 3,540 3,540 Total business-type activities 6,944,628 8,935,363 240,825 105,750 - 2,337,310 2,337,310 Total primary government 28,795,236$ 10,127,795$ 1,127,936$ 1,868,750$ (18,008,065) 2,337,310 (15,670,755) General revenues Property taxes 12,699,857- 12,699,857 Unrestricted state aids 3,555,089 - 3,555,089 Unrestricted investment earnings 1,217,350 255,079 1,472,429 Other general revenue 196,167 - 196,167 Gain on sale of capital assets 119,077 - 119,077 Transfers 474,257 (474,257) - Total general revenues and transfers 18,261,797 (219,178) 18,042,619 Change in net position 253,732 2,118,132 2,371,864 Net position - beginning 85,599,709 31,716,629 117,316,338 Net position - ending 85,853,441$ 33,834,761$ 119,688,202$ See notes to financial statements.31Net (Expense) Revenues and Changes in Net PositionFunctions/ProgramsCity of CrystalStatement of ActivitiesYear Ended December 31, 20207.1
General Fund Debt Service
Street
Reconstruction -
Capital Projects
Assets
Cash and investments 8,638,151$ 4,492,080$ 7,761,272$
Temporarily restricted cash 65,795 - -
Taxes receivable 213,972 5,974 6,337
Special assessments receivable 54,819 8,585,408 1,919,840
Accounts receivable 51,102 - -
Accrued interest 74,525 - -
Due from other governments 22,484 - 3,119
Inventories 9,012 - -
Prepaid items 17,386 - -
Land held for resale - - -
Total assets 9,147,246$ 13,083,462$ 9,690,568$
Liabilities
Accounts payable 98,246$ 320$ 629$
Due to other governments 56,639 - -
Salaries and benefits payable 314,705 - -
Deposits payable 65,795 - -
Contracts payable - - 14,758
Unearned revenue 71,507 - -
Total liabilities 606,892 320 15,387
Deferred Inflows of Resources
State aid related deferred inflows of resources - - 950,079
Unavailable revenue - property taxes 128,078 - 6,337
Unavailable revenue - special assessments 54,626 8,576,608 1,915,585
Total deferred inflows of resources 182,704 8,576,608 2,872,001
Fund Balances
Nonspendable 26,398 - -
Restricted - 4,506,534 -
Committed 926,030 - 6,803,180
Assigned - - -
Unassigned 7,405,222 - -
Total fund balances 8,357,650 4,506,534 6,803,180
Total liabilities, deferred inflow of
resouces, and fund balances 9,147,246$ 13,083,462$ 9,690,568$
See notes to financial statements.32
City of Crystal
Balance Sheet - Governmental Funds
December 31, 2020
7.1
Other
Governmental
Funds
Total
Governmental
Funds
7,559,705$ 28,451,208$
- 65,795
9,238 235,521
80,000 10,640,067
- 51,102
- 74,525
188,427 214,030
- 9,012
- 17,386
309,000 309,000
8,146,370$ 40,067,646$
41,906$ 141,101$
2,831 59,470
8,523 323,228
- 65,795
- 14,758
- 71,507
53,260 675,859
- 950,079
9,238 143,653
80,000 10,626,819
89,238 11,720,551
- 26,398
1,111,878 5,618,412
6,817,380 14,546,590
74,614 74,614
- 7,405,222
8,003,872 27,671,236
8,146,370$ 40,067,646$
33
7.1
34
7.1
City of Crystal
Reconciliation of the Balance Sheet to
the Statement of Net Position - Governmental Funds
December 31, 2020
Total fund balances - governmental funds 27,671,236$
Cost of capital assets 91,362,494
Less accumulated depreciation (45,511,872)
Certain revenues are include in net position but are excluded from fund balances until they are
available to liquidate liabilities of the current period. Unavailable revenue relating to:
Property taxes 143,653
Special assessments 10,626,819
Long-term liabilities are included in net position but are excluded from fund balances until due
and payable.
Bond principal payable (12,470,000)
Premium on debt (397,312)
Discount on debt 14,950
Interest payable (127,339)
Compensated absences payable (926,030)
Governmental funds do not report long-term amounts relating to OPEB. Deferred outflows of
resources and deferred inflows of resources are created as a result of various differences related
to pensions that are not recognized in the governmental funds.
Deferred inflows of resources related to OPEB (937,974)
Deferred outflows of resources related to OPEB 276,796
Total OPEB liability (1,615,325)
Governmental funds do not report long-term amounts relating to pensions and OPEB. Deferred
ourflows of resources and deferred inflows of resources are created as a result of various
differences related to pensions that are not recognized in the governmental funds.
Deferred inflows of resources related to pensions (2,530,257)
Deferred outflows of resources related to pensions 2,294,038
Net pension liability (6,969,795)
An internal service fund is used by management to charge the costs of insurance to individual
funds. The assets and liabilities of the Self-Insurance Internal Service Fund are included in
governmental activities in the Statement of Net Position. 23,817,622
Equity interests in underlying capital assets of joint ventures associated with governmental funds
are not reported in such funds because they do not represent financial assets.
Equity interest in joint venture - West Metro Fire-Rescue District 1,131,737
Total net position - governmental activities 85,853,441$
See notes to financial statements.35
Amounts reported for governmental activities in the Statement of Net Position are different because:
Capital assets used in governmental activities are not current financial resources and, therefore,
are not reported as assets in governmental funds.
7.1
General Fund Debt Service
Street
Reconstruction -
Capital Projects
Revenues
Property taxes 11,407,848$ -$ 110,144$
Special assessments 47,400 1,792,690 600,322
Licenses and permits 676,382 - -
Intergovernmental 3,637,704 - 1,013,257
Charges for services 332,551 - -
Fine and forfeitures 183,499 - -
Interest 190,136 125,727 319,054
Miscellaneous 33,942 - 28,933
Total revenues 16,509,462 1,918,417 2,071,710
Expenditures
Current
General government 2,244,492 - -
Public safety 8,263,068 - -
Public works 1,549,456 - -
Recreation 2,895,125 - -
Economic development 670,574 - -
Debt service
Principal - 3,090,000 -
Interest and other charges - 402,855 -
Capital outlay - - 2,047,448
Total expenditures 15,622,715 3,492,855 2,047,448
Excess of revenues over
(under) expenditures 886,747 (1,574,438) 24,262
Other Financing Sources (Uses)
Proceeds from sale of capital asset 210 - -
Transfers in 474,257 - -
Total other financing
sources (uses) 474,467 - -
Net change in fund
balances 1,361,214 (1,574,438) 24,262
Fund Balances
Beginning of year, as previously stated 6,996,436 6,080,972 6,778,918
Change in accounting principle (See Note 16)- - -
Beginning of year, as restated 6,996,436 6,080,972 6,778,918
End of year 8,357,650$ 4,506,534$ 6,803,180$
See notes to financial statements.36
City of Crystal
Statement of Revenues, Expenditures, and
Changes in Fund Balances - Governmental Funds
Year Ended December 31, 2020
7.1
Other
Governmental
Funds
Total
Governmental
Funds
1,142,833$ 12,660,825$
20,107 2,460,519
- 676,382
252,386 4,903,347
- 332,551
12,740 196,239
295,251 930,168
44,685 107,560
1,768,002 22,267,591
2,346 2,246,838
61,340 8,324,408
- 1,549,456
18,757 2,913,882
633,039 1,303,613
260,275 3,350,275
22,707 425,562
1,092,380 3,139,828
2,090,844 23,253,862
(322,842) (986,271)
27,030 27,240
- 474,257
27,030 501,497
(295,812) (484,774)
15,870,036 35,726,362
(7,570,352) (7,570,352)
8,299,684 28,156,010
8,003,872$ 27,671,236$
37
7.1
38
7.1
City of Crystal
Reconciliation of the Statement of Revenues,
Expenditures, and Changes in Fund Balances to
Year Ended December 31, 2020
(484,774)$
Capital outlays are reported in governmental funds as expenditures. However, in the Statement of
Activities, the cost of those assets is allocated over the estimated useful lives as depreciation expense.
Capital outlays 1,686,597
Depreciation expense (2,992,805)
Revenues relating to delinquent taxes, special assessments, and notes receivable are included in
the change in net position but are excluded from the net change in fund balances until they are
available to liquidate liabilities of the current period. (1,796,397)
The issuance of long-term debt provides current financial resources to governmental funds, while
repayment of the principal of long-term debt consumes the current financial resources of
governmental funds. Neither transaction, however, has any effect on net position. Also,
governmental funds reported the effect of premiums, discounts, and similar items when debt is
first issued, whereas these amounts are deferred and amortized in the Statement of Activities.
Bond principal payments and adjustments 3,090,000
Some expenses reported in the Statement of Activities do not require the use of current financial
resources and therefore, are not reported as expenditures in governmental funds.
Amortization of bond premium 37,624
Amortization of bond discount (9,002)
Accrued interest payable 56,843
Compensated absences (124,527)
OPEB expense (24,561)
Pension costs in governmental funds are recognized when employer contributions are made. On
the Statement of Activities pension costs are recognized on the accrual basis. The difference
between actual employer contributions and accrual basis pension costs is reflected in pension
expense.
Pension expense 267,442
An internal service fund is used by management to charge the costs of insurance to individual
funds. The change in net position of the Self-Insurance Internal Service Fund is included in
governmental activities in the Statement of Net Position. 692,005
Net income (loss) from equity interests is included in the change in net position but is excluded
from the change in fund balances. (144,713)
Change in net position - governmental activities 253,732$
See notes to financial statements.39
Net change in fund balances - governmental funds
Amounts reported for governmental activities in the Statement of Activities are different because:
the Statement of Activities - Governmental Funds
7.1
City of Crystal
Statement of Revenues, Expenditures, and
Changes in Fund Balances -
Budget and Actual - General Fund
Year Ended December 31, 2020
Original Final
Actual
Amounts
Revenues
Property taxes 10,218,522$ 11,535,676$ 11,407,848$ (127,828)$
Special assessments 70,500 70,500 47,400 (23,100)
Licenses and permits 853,810 853,810 676,382 (177,428)
Intergovernmental 1,787,339 1,787,339 3,637,704 1,850,365
Charges for services 890,052 890,052 332,551 (557,501)
Fine and forfeitures 307,000 307,000 183,499 (123,501)
Interest 94,512 94,512 190,136 95,624
Miscellaneous revenues 84,033 84,033 33,942 (50,091)
Total revenues 14,305,768 15,622,922 16,509,462 886,540
Expenditures
General government
Mayor and council 136,320 144,113 105,316 (38,797)
Administration 1,070,325 1,119,035 1,149,758 30,723
Human resources 56,613 61,317 51,416 (9,901)
Assessing 322,691 346,575 371,927 25,352
Legal 59,000 60,720 51,544 (9,176)
Elections 128,096 132,604 84,212 (48,392)
Finance 351,148 375,375 426,295 50,920
City buildings - - 4,024 4,024
Total general government 2,124,193 2,239,739 2,244,492 4,753
Public safety
Police 6,164,559 6,591,560 6,531,589 (59,971)
Fire 1,508,437 1,602,982 1,731,479 128,497
Total public safety 7,672,996 8,194,542 8,263,068 68,526
Public works
Engineering 441,633 458,533 451,476 (7,057)
Street maintenance 1,019,316 1,158,693 1,097,980 (60,713)
Total public works 1,460,949 1,617,226 1,549,456 (67,770)
Recreation
Park maintenance 1,010,514 1,156,534 1,153,329 (3,205)
Forestry 90,800 93,734 58,798 (34,936)
Recreation 1,022,571 1,061,146 915,453 (145,693)
Community center 426,755 656,792 645,698 (11,094)
Waterslide/swimming pool 283,878 355,744 121,847 (233,897)
Total recreation 2,834,518 3,323,950 2,895,125 (428,825)
See notes to financial statements.40
Variance with
Final Budget
Budgeted Amounts
7.1
City of Crystal
Statement of Revenues, Expenditures, and
Changes in Fund Balances -
Budget and Actual - General Fund
Year Ended December 31, 2020
Original Final
Actual
Amounts
Expenditures (Continued)
Community development
Planning and code enforcement 687,370$ 721,723$ 670,574$ (51,149)$
Total expenditures 14,780,026 16,097,180 15,622,715 (474,465)
Excess of revenues over
(under) expenditures (474,258) (474,258) 886,747 1,361,005
Other Financing Sources
Proceeds from sale of capital asset - - 210 210
Transfers in 474,258 474,258 474,257 (1)
Total other financing
sources 474,258 474,258 474,467 209
Net change in fund balances -$ -$ 1,361,214 1,361,214$
Fund Balance
Beginning of year 6,996,436
End of year 8,357,650$
See notes to financial statements.41
Budgeted Amounts Final Budget -
Positive
(Negative)
7.1
Water Sewer Storm Drainage Streetlights
Assets
Current assets
Cash and investments (including cash equivilants)1,537,557$ 1,160,442$ 2,149,587$ 776,217$
Special assessment receivable 365,039 8,360 - -
Accounts receivable 820,301 504,239 241,203 35,542
Due from other funds - 30,000 - 30,000
Due from other governments 739,031 - - -
Inventories 30,964 7,875 2,128 -
Prepaid expenses 22,084 520 260 -
Total current assets 3,514,976 1,711,436 2,393,178 841,759
Noncurrent assets
Equity interest in joint venture 4,858,486 - - -
Advance to other funds - 90,000 - 90,000
Capital assets
Land 42,200 - 716,862 -
Infrastructure 3,603,173 9,761,490 16,495,561 634,133
Buildings - - - -
Improvements other than buildings - - 187,246 16,861
Office equipment and furnishings - - - -
Software 29,445 - - -
Machinery and equipment 1,918,002 294,858 11,805 -
Vehicles - - - -
Construction in progress 556,873 1,054,682 674,354 -
Total capital assets 6,149,693 11,111,030 18,085,828 650,994
Less accumulated depreciation (2,750,131) (4,743,994) (6,381,463) (361,480)
Net capital assets 3,399,562 6,367,036 11,704,365 289,514
Total noncurrent assets 8,258,048 6,457,036 11,704,365 379,514
Deferred Outflows of Resources
Pension-related deferred outflows 15,945 15,812 7,904 -
OPEB-related deferred outflows 11,714 11,673 5,836 -
Total deferred outflows of resources 27,659 27,485 13,740 -
Liabilities
Current liabilities
Accounts payable 18,204 24,847 23,091 9,200
Contracts payable 21,844 43,471 13,041 -
Salaries and benefits payable 10,866 10,566 5,283 -
Deposits payable - - - -
Due to other funds 60,000 - - -
Due to other governments 307,327 55 28 -
Current compensated absences 21,228 21,228 10,614 -
Total current liabilities 439,469 100,167 52,057 9,200
Noncurrent liabilities
Compensated absences 13,870 13,870 6,935 -
Advances from other funds 180,000 - - -
Net pension liability 221,707 219,854 109,905 -
Total OPEB liability 68,357 68,121 34,060 -
Total noncurrent liabilities 483,934 301,845 150,900 -
Deferred Inflows of Resources
Pension-related deferred inflows 15,681 15,550 7,773 -
OPEB-related deferred intflows 39,693 39,556 19,778 -
Total deferred intflows of resources 55,374 55,106 27,551 -
Net Position
Net investment in capital assets 3,399,562 6,367,036 11,704,365 289,514
Unrestricted 7,422,344 1,371,803 2,176,410 922,559
Total net position 10,821,906$ 7,738,839$ 13,880,775$ 1,212,073$
See notes to financial statements.42
City of Crystal
Statement of Net Position - Proprietary Funds
December 31, 2020
7.1
Recycling Utility Totals
135,533$ 5,759,336$ 8,421,233$
- 373,399 -
47,589 1,648,874 131,447
- 60,000 -
- 739,031 -
- 40,967 -
- 22,864 -
183,122 8,644,471 8,552,680
- 4,858,486 -
- 180,000 -
- 759,062 -
- 30,494,357 -
- - 18,730,476
- 204,107 342,750
- - 608,395
- 29,445 165,658
- 2,224,665 5,065,033
- - 3,088,102
- 2,285,909 637,264
- 35,997,545 28,637,678
- (14,237,068) (13,270,815)
- 21,760,477 15,366,863
- 26,798,963 15,366,863
- 39,661 -
- 29,223 -
- 68,884 -
1,954 77,296 100,799
- 78,356 -
- 26,715 -
- - -
- 60,000 -
- 307,410 1,122
- 53,070 -
1,954 602,847 101,921
- 34,675 -
- 180,000 -
- 551,466 -
- 170,538 -
- 936,679 -
- 39,004 -
- 99,027 -
- 138,031 -
- 21,760,477 15,366,863
181,168 12,074,284 8,450,759
181,168$ 33,834,761$ 23,817,622$
43
Governmental
Activities -
Internal Service
Funds
7.1
Water Sewer Storm Drainage
Operating revenues
Charges for services 4,174,579$ 2,679,871$ 1,271,999$
Other charges 267,598 3,502 284
Miscellaneous - - -
Total operating revenues 4,442,177 2,683,373 1,272,283
Operating expenses
Personal services 355,378 346,458 173,520
Other services 245,435 134,913 182,948
Supplies 99,373 56,798 23,295
Water purchases 2,498,950 - -
Sewage disposal charges - 1,645,537 -
Electric service - - -
Recycling charges - - -
Depreciation 157,689 133,343 345,253
Equipment - - -
Total operating expenses 3,356,825 2,317,049 725,016
Operating income (loss) 1,085,352 366,324 547,267
Nonoperating revenues (expenses)
Investment income 65,998 70,567 82,948
Interest expense (6,000) - -
Special assessments - 52,250 -
Grants and contributions - - 53,500
Gain on sale of capital assets - - -
Net income (loss) from joint venture 237,039 - -
Total nonoperating revenue (expenses) 297,037 122,817 136,448
Income before capital contributions and transfers 1,382,389 489,141 683,715
Transfers out (198,427) (198,427) (53,395)
Change in net position 1,183,962 290,714 630,320
Net position - beginning, as previously stated 9,637,944 7,448,125 13,250,455
Change in accounting principle (See Note 16)- - -
Net position - beginning, as restated 9,637,944 7,448,125 13,250,455
End of year 10,821,906$ 7,738,839$ 13,880,775$
See notes to financial statements.44
City of Crystal
Statement of Revenues, Expenses, and Changes
in Net Position - Proprietary Funds
Year Ended December 31, 2020
7.1
Streetlights Recycling Utility Totals
193,029$ 348,287$ 8,667,765$ 1,762,307$
- - 271,384 -
- - - 195,874
193,029 348,287 8,939,149 1,958,181
- - 875,356 -
4,601 114 568,011 704,834
35,300 - 214,766 17,253
- - 2,498,950 -
- - 1,645,537 -
122,734 - 122,734 -
- 344,633 344,633 -
32,356 - 668,641 1,283,009
- - - 196,851
194,991 344,747 6,938,628 2,201,947
(1,962) 3,540 2,000,521 (243,766)
30,168 5,398 255,079 287,182
- - (6,000) -
- - 52,250 -
- - 53,500 556,756
- - - 91,837
- - 237,039 -
30,168 5,398 591,868 935,775
28,206 8,938 2,592,389 692,009
(15,084) (8,924) (474,257) -
13,122 14 2,118,132 692,009
1,198,951 181,154 31,716,629 507,964
- - - 22,617,649
1,198,951 181,154 31,716,629 23,125,613
1,212,073$ 181,168$ 33,834,761$ 23,817,622$
45
Governmental
Activities -
Internal Service
Funds
7.1
Water Sewer Storm Drainage Street Lights
Cash Flows - Operating Activities
Receipts from customers 3,623,424$ 2,671,477$ 2,395,664$ 192,080$
Interfund services provided and used - - - -
Payments to suppliers (2,644,949) (1,817,136) (181,850) (163,942)
Payments to employees (405,374) (386,049) (193,323) -
Miscellaneous revenue - -
Net cash flows - operating activities 573,101 468,292 2,020,491 28,138
Cash Flows - Noncapital
Financing Activities
Transfer to other funds (198,427) (198,427) (53,395) (15,084)
Cash Flows - Capital and Related
Financing Activities
Change in advance to other funds - 30,000 - 30,000
Change in due to other funds (60,000) - - -
Change in assessments receivable 18,593 43,890 - -
Interest paid on debt (6,000) - - -
Proceeds from disposal of capital assets - - - -
Grants and contributions - - 53,500 -
Acquisition of capital assets (565,914) (1,156,879) (811,677) (1,030)
Net cash flows - capital and related
financing activities (613,321) (1,082,989) (758,177) 28,970
Cash Flows - Investing Activities
Interest and dividends received 65,998 70,567 82,948 30,168
Net change in cash and cash equivalents (172,649) (742,557) 1,291,867 72,192
Cash and cash equivalents, January 1 1,710,206 1,902,999 857,720 704,025
Cash and cash equivalents, December 31 1,537,557$ 1,160,442$ 2,149,587$ 776,217$
Reconciliation of Operating
Income (Loss) to Net Cash
Flows - Operating Activities
Operating income (loss) 1,085,352$ 366,324$ 547,267$ (1,962)$
Adjustments to reconcile operating
income (loss) to net cash flows -
operating activities
Depreciation expense 157,689 133,343 345,253 32,356
Accounts receivable (80,957) (11,896) (11,775) (949)
Due from other governments (737,796) - 1,135,156 -
Prepaid items 136,364 - 2,500 -
Inventory 2,249 5,777 2,617 -
Accounts payable (14,429) 14,332 19,274 (1,307)
Due to other governmental units 76,425 3 2 -
Salaries payable 3,250 2,978 1,489 -
Deposits payable (1,800) - - -
OPEB (7,189) (5,870) (2,933) -
Pension related activity (34,514) (25,156) (12,588) -
Compensated absences payable (11,543) (11,543) (5,771) -
Total adjustments (512,251) 101,968 1,473,224 30,100
Net cash flows -
operating activities 573,101$ 468,292$ 2,020,491$ 28,138$
Noncash Capital and Related
Financing Activities
Net income (loss) from joint venture 237,039$ -$ -$ -$
See notes to financial statements.46
City of Crystal
Statement of Cash Flows - Proprietary Funds
Year Ended December 31, 2020
7.1
Recycling
Utility Totals
Internal Service
Funds
355,236$ 9,237,881$ -$
- - 1,762,307
(342,801) (5,150,678) (1,238,378)
- (984,746) -
- - 106,462
12,435 3,102,457 630,391
(8,924) (474,257) -
- 60,000 -
- (60,000) -
- 62,483 -
- (6,000) -
- - 91,837
- 53,500 556,756
- (2,535,500) (1,602,575)
- (2,425,517) (953,982)
5,398 255,079 287,182
8,909 457,762 (36,409)
126,624 5,301,574 8,457,642
135,533$ 5,759,336$ 8,421,233$
3,540$ 2,000,521$ (243,766)$
- 668,641 1,283,009
6,949 (98,628) (89,412)
- 397,360 -
- 138,864 1,295
- 10,643 -
1,946 19,816 (273,118)
- 76,430 (47,617)
- 7,717 -
- (1,800) -
- (15,992) -
- (72,258) -
- (28,857) -
8,895 1,101,936 874,157
12,435$ 3,102,457$ 630,391$
-$ 237,039$ -$
47
7.1
Hennepin
Recycling
Group
Custodial Fund
Assets
Cash and investments
(including cash equivalents)509,263$
Due from other governments 19,218
Total assets 528,481$
Liabilities
Accounts payable 104,899$
Due to other governments 75,080
Total liabilities 179,979$
Net Position
Held in trust 348,502$
Hennepin
Recycling
Group
Custodial Fund
Additions
Charges for serivces 951,902$
Investment income 27,438
Intergovernmental 109,303
Refunds and reimbursements 1,120
Other income 34
Total additions 1,089,797
Deductions
Recycling services 1,466,386$
Administrative and grant services 19,687
Other contract and professional services 81,240
Office supplies 14,607
Rentals 19,451
Total deductions 1,601,371
Change in net position (511,574)
Net Position
Beginning of year 860,076
End of year 348,502$
See notes to financial statements.48
City of Crystal
Statement of Fiduciary Net Position
December 31, 2020
Statement of Changes Fiduciary Net Position
Year Ended December 31, 2020
7.1
49
City of Crystal
Notes to Financial Statements
NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
A. Reporting Entity
The City of Crystal (the City) operates under the Home Rule Charter form of government in accordance
with applicable State of Minnesota Statutes. The charter prescribes a Council-Manager form of
organization. The governing body consists of a seven-member City Council elected at large to serve
four-year staggered terms.
The accompanying financial statements present the activities of the government. Certain organizations
have been defined in accordance with GASB Statement No. 14 and are presented in this report as
follows:
1. Blended Component Units
Blended component units, although legally separate entities, are, in substance, part of the
government's operations. The City has one blended component unit which is reported as if it were
part of the City.
The Economic Development Authority (EDA), in and for the City, was created by the City to
provide housing and redevelopment assistance through the administration of various programs. It
levies taxes to provide funds for redevelopment in the City.
Although the EDA is legally separate from the City, it is reported as if it were part of the primary
government. Its governing board is comprised of the City Council members and the City has
operational responsibility of the EDA, meaning it manages the EDA's activities in essentially the
same manner in which it manages its own programs and departments. The EDA is reported as a
special revenue fund. It does not issue a separate set of financial statements.
2. Joint Ventures
A joint venture is a legal entity or other organization that results from a contractual agreement and
that is owned, operated, or governed by two or more participants as a separate and specific activity
subject to joint control. The participants retain either an ongoing financial interest or an ongoing
financial responsibility. The City participates in two joint ventures – the Golden Valley, Crystal,
New Hope Joint Water Commission, and the West Metro Fire-Rescue District. Descriptions and
other financial information for these organizations are included in the note entitled Joint Ventures
and Jointly Governed Organizations.
3. Jointly Governed Organizations
The City has several agreements with governmental and other entities that provide reduced costs,
better service, and additional benefits to participants. The various programs in which the City
participates in are described in the note entitled Joint Ventures and Jointly Governed Organizations.
B. Government-Wide and Fund Financial Statements
The government-wide financial statements (i.e. the Statement of Net Position and the Statement of
Activities) report information on all of the non-fiduciary activities of the primary government and its
component units. Governmental activities, which normally are supported by taxes and
intergovernmental revenues, are reported separately from business-type activities, which rely to a
significant extent on charges for sales and/or services and fees.
7.1
50
City of Crystal
Notes to Financial Statements
NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
B. Government-Wide and Fund Financial Statements (Continued)
Separate financial statements are provided for governmental funds, proprietary funds, and fiduciary
funds, even though the latter are excluded from the government-wide financial statements. Major
individual governmental funds and major individual enterprise funds are reported as separate columns in
the fund financial statements. Aggregated information for the remaining nonmajor governmental funds
is reported in a single column in the fund financial statements.
The Statement of Activities demonstrates the degree to which the direct expenses of a given function or
segment is offset by program revenues. Direct expenses are those that are clearly identifiable with a
specific function or segment. The City does not allocate indirect expenses. Program revenues include 1)
charges to customers or applicants who purchase, use, or directly benefit from goods, services, or
privileges provided by a given function or segment, 2) operating grants and contributions restricted to
meeting the operational requirements of a particular function, and 3) capital grants and contributions
restricted to meeting the capital requirements of a particular function, including special assessments.
Internally dedicated resources are reported as general revenues rather than as program revenues.
Likewise, general revenues include all taxes.
As a general rule, the effect of interfund activity has been eliminated from the government-wide
financial statements. However, charges between the City's enterprise funds and other functions (i.e.
interfund services provided and used) are not eliminated, as that would distort the direct costs and
program revenues reported in those functions. Depreciation expense is included in the direct expenses of
each function. Interest on long-term debt is considered an indirect expense and is reported separately
under governmental activities on the Statement of Activities.
C. Measurement Focus, Basis of Accounting, and Financial Statement Presentation
The government-wide financial statements are reported using the economic resources measurement
focus and the accrual basis of accounting, as are the proprietary fund financial statements. Revenues are
recorded when earned and expenses are recorded when a liability is incurred, regardless of the timing of
related cash flows. Property taxes are recognized as revenues in the year for which they are levied.
Grants and similar items are recognized as revenue as soon as all eligibility requirements imposed by the
provider have been met.
Governmental fund financial statements are reported using the current financial resources measurement
focus and the modified accrual basis of accounting. Revenues are recognized as soon as they are both
measurable and available. "Measurable" means the amount of the transaction can be determined and
"available" means collectible within the current period or soon enough thereafter to be used to pay
liabilities of the current period.
For this purpose, the City considers revenues to be available if they are collected within 60 days after
year-end. Major revenues susceptible to accrual include property taxes, special assessments,
intergovernmental revenues, charges for services, and investment earnings. Major revenues not
susceptible to accrual include licenses, permits, inspection fees, and miscellaneous revenues. Such
revenues are recorded only as received because they are not measurable until collected. Issuance of
bonds and proceeds from sale of property and equipment are reported as other financing sources.
7.1
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City of Crystal
Notes to Financial Statements
NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
C. Measurement Focus, Basis of Accounting, and Financial Statement Presentation (Continued)
Expenditures generally are recorded when a liability is incurred, as under accrual accounting. However,
debt service expenditures, as well as expenditures related to compensated absences and claims and
judgments, are recorded only when payment is due.
Proprietary funds distinguish operating revenues and expenses from non-operating items. Operating
revenues and expenses generally result from providing services and producing and delivering goods in
connection with a proprietary fund's principal ongoing operations. The principal operating revenues of
the enterprise funds and of the government's internal service fund are charges to customers for sales and
services. Operating expenses for enterprise funds and the internal service fund include the cost of sales
and services, administrative expenses, and depreciation on capital assets. All revenues and expenses not
meeting this definition are reported as non-operating revenues and expenses.
The Custodial Fund is presented in the fiduciary fund financial statements. Since, by definition, these
assets are being held for the benefit of a third party (other local governments, private parties, etc.) and
cannot be used to address activities or obligations of the City, this fund is not incorporated into the
government-wide statements. This fund uses the economic resources measurement focus and the accrual
basis of accounting.
When both restricted and unrestricted resources are available for use, it is the government's policy to use
restricted resources first, then unrestricted resources as they are needed.
Description of Funds:
The government reports the following major governmental funds:
General Fund – This is the government's primary operating fund. It accounts for all financial
resources of the general government, except those required to be accounted for in another fund.
Debt Service – This fund accounts for resources accumulated, and payments made, for principal and
interest on long-term general obligation debt and tax increment revenue notes of governmental
funds.
Street Reconstruction – Capital Projects – This fund is used to account for ongoing street
reconstruction projects in the City. The City has been divided into a total of sixteen reconstruction
phases.
The government reports the following major proprietary funds:
Water Fund – 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.
7.1
52
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)
The government reports the following major proprietary funds: (Continued)
Sanitary Sewer Fund – 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 Fund – This fund accounts for the operation, maintenance, and improvement of the
City's storm drainage system.
Streetlights Fund – This fund accounts for the operation, maintenance, and improvement of the
City's street lights.
Recycling Fund – 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:
Internal Service Funds are used to account, on a cost-reimbursement basis, for the financing of
uninsured risks of loss (self-insurance), fleet, information technology, and City buildings. Related
services are provided to other departments of the City.
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.
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.
7.1
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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)
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.
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.
7.1
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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)
5. Special Assessments
In accordance with state statutes, special assessments are levied against benefited properties for the
assessable costs of improvement projects. The City normally adopts an assessment roll at the time an
individual project is started. Assessments are collectible over a term of years generally consistent
with the term of years of the related bond issue. The County handles collection of annual
installments, including interest, in the same manner as property taxes. Property owners are allowed
to prepay total future installments without interest or prepayment penalties.
In the fund financial statements, special assessments receivable include the following components,
and are offset by a deferred inflow of resources:
Delinquent – Amounts billed to property owners but not yet paid
Deferred – Installments that will be billed to property owners in future years.
6. Inventories
Fuel inventory recorded in the General Fund and parts inventories recorded in the enterprise funds
are valued at cost using the first-in/first-out (FIFO) method. The cost of inventories is recorded using
the consumption method, where costs are recorded as expenditures/expenses when consumed rather
than when purchased.
7. Prepaid Items
Prepaid items in the government-wide and fund financial statements reflect costs paid to vendors that
are applicable to future accounting periods. The cost of prepaid items is recorded using the
consumption method, where costs are recorded as expenditures when consumed rather than when
purchased.
8. Land Held for Resale
The Crystal EDA acquires properties for redevelopment purposes. Land held for resale is reported as
an asset at its net realizable value in the EDA Special Revenue Fund. Any costs incurred that are
above a property's net realizable value are reported as expenditures of the current period.
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.
7.1
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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)
10. Capital Assets
Capital assets, both tangible and intangible, which include land, buildings, and structures,
improvements other than buildings, machinery, and equipment, office equipment and furnishings,
software, vehicles and trailers, and infrastructure (utility systems, traffic and transportation systems,
and park systems) are reported in the applicable governmental or business-type activities columns in
the government-wide financial statements.
With the initial capitalization of infrastructure assets of governmental activities, as required by the
implementation of GASB Statement No. 34, the City chose to include all such items, regardless of
acquisition date. Historical costs were available from an independent, city-wide asset valuation that
had been completed in 1992, as well as from contractor invoices for street reconstruction projects
completed subsequent to 1992.
Tangible and intangible capital assets are defined by the City as assets with an initial, individual cost
of more than $5,000 and an estimated useful life in excess of one year. Such assets are recorded at
historical cost or estimated historical cost if purchased or constructed. Donated capital assets are
recorded at acquisition value at the date of donation.
The costs of normal maintenance and repairs that do not add to the value of assets or materially
extend asset lives are not capitalized. Interest is not being capitalized on construction projects.
Tangible and intangible capital assets of the City are depreciated using the straight-line, mid-month
convention. In instances in which estimated useful lives have been revised to more closely
approximate historical experience, depreciation is calculated by taking the net remaining value over
the remaining life (prospectively). Estimated useful lives are as follows:
Years
Buildings and structures 5-50
Improvements other than buildings 5-40
Machinery and equipment 5-30
Office equipment and furnishings 5-20
Software 5
Vehicles and trailers 3-12
Infrastructure
Utility systems 25-75
Traffic and transportation systems 10-30
Park systems 15-20
Classification
7.1
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City of Crystal
Notes to Financial Statements
NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
D. Assets, Liabilities, Deferred Outflows/Inflows of Resources, and Net Position or Equity
(Continued)
11. Fund Balance Classifications
In the fund financial statements, governmental funds report fund balance in classifications that
disclose constraints for which amounts in those funds can be spent. Classifications of fund balance
that will be used are as follows:
Nonspendable Fund Balance – These are resources that cannot be spent because they are either
not readily convertible to cash or are legally or contractually required to be maintained intact.
Examples include money held in escrow, prepaid amounts, land held for resale, and long-term
loans or notes receivable.
Restricted Fund Balance – These are resources whose spending is constrained externally by
creditors or by laws and regulations of another government. Examples include grants,
intergovernmental revenues, and resources in debt service funds that include a legally
enforceable requirement that those resources be spent only for specific purposes.
Committed Fund Balance – These are resources that can only be used for specific purposes
established by the City Council. Establishment of these specific purposes must be done by a
resolution adopted by the City Council and may only be changed or removed by a resolution
adopted by the City Council.
Assigned Fund Balance – These are resources that the City intends to be used for specific
purposes but are neither restricted nor committed. Assigned fund balances are established by a
motion of the City Council. The City Council may also delegate this authority to the City
Manager, who may act upon recommendation of the Finance Director.
Unassigned Fund Balance – These are resources that are available for any purpose of the fund.
Amounts identified as cash flow resources are classified as unassigned. Only the General Fund
may have a positive unassigned fund balance. A deficit fund balance in any fund must be
classified as an unassigned fund balance.
When multiple classifications of resources are available for use, it is the City's policy to first use
restricted resources if permitted, then committed, assigned, or unassigned resources. It is the City's
policy to retain in fund balance resources that have the lowest level of constraints possible.
The City Council has formally adopted a policy regarding the minimum unassigned fund balance for
the General Fund. The most significant revenue source of the General Fund is property taxes. This
revenue source is received in two installments during the year – July and December. As such, it is
the City's goal to begin each fiscal year with sufficient cash flow reserves to fund operations
between each semi-annual receipt of property taxes.
7.1
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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.
7.1
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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)
15. Deferred Inflows of Resources
In addition to liabilities, the statement of financial position and fund financial statements will
sometimes report a separate section for deferred inflows of resources. This separate financial
statement element represents an acquisition of net position that applies to a future period(s) and so
will not be recognized as an inflow of resources (revenue) until that time.
The City has three items that qualify for reporting in this category: 1) The City presents deferred
inflows of resources on the Governmental Fund Balance Sheet as unavailable revenue. The
governmental funds report unavailable revenues from two sources, including property taxes and
special assessments. These amounts are deferred and recognized as an inflow of resources in the
period that the amounts become available. 2) The City presents deferred inflows of resources on the
Statement of Net Position for pension and OPEB-related deferred inflows of resources. Pension and
OPEB related deferred inflows of resources result from various estimate differences that will be
amortized and recognized over future years. 3) At the fund level and government-wide level, grants
received for subsequent years are presented as deferred inflows of resources as time requirements
have not been met.
16. Pensions
For purposes of measuring the net pension liability, deferred outflows/inflows of resources, and
pension expense, information about the fiduciary net position of the Public Employees Retirement
Association of Minnesota (PERA) and additions to/deductions from PERA's fiduciary net position
have been determined on the same basis as they are reported by PERA, except that PERA's fiscal
year end is June 30. For this purpose, plan contributions are recognized as of employer payroll paid
dates and benefit payments and refunds are recognized when due and payable in accordance with the
benefit terms. Investments are reported at fair value.
17. Statement of Cash Flows
For purpose of the Statement of Cash Flows, the City considers all highly liquid debt instruments
with an original maturity from the time of purchase by the City of three months or less to be cash
equivalents. The proprietary fund's equity in the government-wide cash and investment management
pool is considered to be cash equivalents.
18. Budgets and Budgetary Accounting
The City follows these procedures in establishing the budgetary data reflected in the financial
statements:
Prior to each September 15, the City Manager submits to the City Council proposed
operating budgets for the fiscal year commencing the following January. The operating
budgets include proposed expenditures and the means of financing them.
7.1
59
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
In November, the County mails individual property tax notices to residents showing the taxes
that would result from the proposed budgets of all taxing units within the City.
Prior to proposed budgets being approved, public hearings are conducted to obtain taxpayer
comments.
In December, final budgets are legally enacted by the City Council through passage of a
resolution.
During the budget year, the City Council must authorize any transfer of budgeted amounts
between departments within the General Fund. City management may authorize a transfer of
budgeted amounts within individual departments without obtaining approval from the City
Council.
Supplemental appropriations during the year may only be made by the City Council. These
amounts must be financed by funds from the contingency reserve set up in the General Fund
or by additional revenues.
All budget amounts lapse at the end of the year to the extent they have not been expended.
Budgets are adopted on a basis consistent with accounting principles generally accepted in
the United States of America. The City budgets for its General Fund, EDA Special Revenue
Fund, TIF Special Revenue Fund, and the following capital projects funds, Street
Reconstruction, Police Equipment Revolving, and Park Improvement. The budgets are
adopted on a modified accrual basis.
Budgetary control is maintained at the department level for the General Fund and at the fund
level for all other funds that adopt annual budgets. City management must request approval
from the City Council before exceeding budget at the applicable level.
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.
7.1
60
City of Crystal
Notes to Financial Statements
NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
D. Assets, Liabilities, Deferred Outflows/Inflows of Resources, and Net Position or Equity
(Continued)
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 $2,019,696 and the bank balance was
$2,397,379. 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.
7.1
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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:
Bonds, notes, bills, mortgages, and other securities that are direct obligations or are guaranteed
or insured issues of the United States, its agencies, instrumentalities, or organizations created by
Congress.
State and local securities, including:
o Any security that is a general obligation of any state or local government with taxing powers
and is rated "A" or better by a national bond rating agency
o Any security that is a revenue obligation of any state or local government with taxing powers
and is rated "AA" or better by a national bond rating agency
Commercial paper issued by United States corporations or their Canadian subsidiaries that is
rated in the highest quality category by at least two nationally recognized rating agencies and
that matures in 270 days or less.
Time deposits that are fully insured by the Federal Depository Insurance Corporation.
Bankers' acceptances of United States banks.
Money market mutual funds.
Government investment pools, including the Minnesota Municipal Money Market Fund.
As of December 31, 2020, 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 31,351,372$ 3,287,051$ 23,311,422$ 4,752,899$ -$
State and local government bonds 426,321 426,321 - - -
Money market accounts 9,407,477 9,407,477 - - -
Total 41,185,170$ 13,120,849$ 23,311,422$ -$ -$
Investment Maturities
Investment Type
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."
7.1
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City of Crystal
Notes to Financial Statements
NOTE 2 – DEPOSITS AND INVESTMENTS (CONTINUED)
B. Investments (Continued)
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, 2020, 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.
The City has the following recurring fair value measurements as of December 31, 2020:
$31,777,694 of investments are valued using a matrix pricing model (Level 2 inputs)
The following summary reconciles cash and investments to the financial statements:
Cash on hand 1,969$
Carrying amount of deposits 2,019,696
Carrying amount of investments 41,185,170
Total 43,206,835$
Statement of Net Position
Cash and investments 42,631,777$
Cash with fiscal agent 65,795
Statement of Fiduciary Net Position
Cash and investments 509,263
Total deposits and investments 43,206,835$
7.1
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City of Crystal
Notes to Financial Statements
NOTE 3 – INTERFUND RECEIVABLES AND PAYABLES
Advances to/from Other Funds
Balances as of December 31, 2020, are as follows:
Original Amount Due Within
Receivable Fund Payable Fund Amount Outstanding One Year
Sanitary Sewer Water 300,000$ 120,000$ 30,000$
Street Lights Water 300,000 120,000 30,000
Total 600,000$ 240,000$ 60,000$
Amounts payable to the Sanitary Sewer and Street Lights funds relate to loans made to help pay for the
City's share of three new emergency water supply wells. The wells will be owned by the Joint Water
Commission (refer to Note 13). The City's share of the total cost will be approximately $1,200,000. The
Water Fund has sufficient resources to pay for half of the project and the interfund loans will provide
cash for the balance. Interest at the rate of 2% will be paid on the loans over a ten-year period, from
2015-2024. To provide the Water Fund with revenue to replenish its cash reserves and repay the loans, a
charge for service of $0.21/thousand gallons of water used has been approved and implemented.
NOTE 4 – INTERFUND TRANSFERS
Interfund transfers for the year ended December 31, 2020, are as follows:
Transfers In
Transfers Out General
Water 198,427$
Sanitary sewer 198,427
Storm drainage 53,395
Streetlights 15,084
Recycling 8,924
Total 474,257$
Transfers are used to 1) move revenues from the fund that statute or budget requires to collect them to
the fund that statute or budget requires to expend them, 2) assist with capital needs, and 3) create and
close funds.
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City of Crystal
Notes to Financial Statements
NOTE 5 – CAPITAL ASSETS
Capital asset activity for the year ended December 31, 2020, 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 2,826,671 1,622,017 (3,496,666) 952,022
Total capital assets
not being depreciated 9,687,207 1,622,017 (3,496,666) 7,812,558
Capital assets being depreciated
Buildings and structures 19,627,235 270,267 - 19,897,502
Improvements other than buildings 6,828,801 60,319 - 6,889,120
Machinery and equipment 6,530,560 500,441 (9,560) 7,021,441
Office equipment and furnishings 1,015,534 21,886 - 1,037,420
Software 312,937 - - 312,937
Vehicles and trailers 3,447,040 778,966 (304,138) 3,921,868
Traffic and transportation systems 68,680,639 101,037 - 68,781,676
Park systems 894,749 3,430,901 - 4,325,650
Total capital assets
being depreciated 107,337,495 5,163,817 (313,698) 112,187,614
Less accumulated depreciation for
Buildings and structures (8,640,799) (589,095) - (9,229,894)
Improvements other than buildings (3,709,012) (222,656) - (3,931,668)
Machinery and equipment (3,373,668) (468,928) 9,560 (3,833,036)
Office equipment and furnishings (582,855) (90,490) - (673,345)
Software (274,597) (24,809) - (299,406)
Vehicles and trailers (2,304,859) (298,250) 304,138 (2,298,971)
Traffic and transportation systems (35,785,960) (2,481,703) - (38,267,663)
Park systems (148,821) (99,883) - (248,704)
Total accumulated
depreciation (54,820,571) (4,275,814) 313,698 (58,782,687)
Total capital assets being
depreciated, net 52,516,924 888,003 - 53,404,927
Governmental activities capital
position, net 62,204,131$ 2,510,020$ (3,496,666)$ 61,217,485$
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City of Crystal
Notes to Financial Statements
NOTE 5 – CAPITAL ASSETS (CONTINUED)
Capital asset activity for the year ended December 31, 2020, 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 1,984,029 2,534,504 (2,232,624) 2,285,909
Total capital assets not
being depreciated 2,930,337 2,534,504 (2,232,624) 3,232,217
Capital assets being depreciated
Buildings and structures - - - -
Improvements other than buildings 16,861 - - 16,861
Machinery and equipment 2,174,757 49,908 - 2,224,665
Software - 29,445 - 29,445
Vehicles and trailers - - - -
Utility systems 26,898,233 2,225,973 - 29,124,206
Traffic and transportation systems 1,363,501 6,650 - 1,370,151
Total capital assets
being depreciated 30,453,352 2,311,976 - 32,765,328
Less accumulated depreciation for
Buildings and structures - - - -
Improvements other than buildings (11,451) (843) - (12,294)
Machinery and equipment (1,087,082) (104,856) - (1,191,938)
Software - (1,963) - (1,963)
Vehicles and trailers - - - -
Utility systems (12,152,221) (529,466) - (12,681,687)
Traffic and transportation systems (317,673) (31,513) - (349,186)
Total accumulated
depreciation (13,568,427) (668,641) - (14,237,068)
Total capital assets being
depreciated, net 16,884,925 1,643,335 - 18,528,260
Business-type activities
capital assets, net 19,815,262$ 4,177,839$ (2,232,624)$ 21,760,477$
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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 265,907$
Public safety 560,665
Public works 2,627,261
Parks and recreation 770,879
Community development 51,102
Total depreciation expense - governmental activities 4,275,814$
Business-type activities
Water 157,689$
Sanitary sewer 133,343
Storm drainage 345,253
Street light 32,356
Total depreciation expense - business-type activities 668,641$
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 2009A 08/01/09 2.00%-4.50% 3,360,000$ 02/01/25 485,000$
G.O. Improvement Bonds, Series 2011A 08/01/11 0.50%-3.55% 1,705,000 02/01/27 685,000
G.O. Improvement Bonds, Series 2012A 08/01/12 1.50%-2.13% 2,635,000 02/01/28 1,250,000
G.O. Improvement Bonds, Series 2013A 08/01/13 2.00%-3.50% 3,235,000 02/01/29 1,825,000
G.O. Improvement Bonds, Series 2015A 08/01/15 2.50%-3.00% 2,550,000 02/01/31 1,755,000
G.O. Improvement Bonds, Series 2016A 08/25/16 2.00%-2.50% 3,330,000 02/01/32 2,550,000
G.O. Improvement Bonds, Series 2017A 09/14/17 2.00%-3.00% 4,665,000 02/01/33 3,920,000
Total governmental activities 12,470,000$
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City of Crystal
Notes to Financial Statements
NOTE 6 – LONG-TERM DEBT (CONTINUED)
C. Changes in Long-Term Liabilities
Interest paid on most of the debt issued by the City is exempt from federal income tax. As a result,
purchasers of this debt are willing to accept lower interest rates than they would on taxable debt. The
City pools the proceeds of bond issues held in construction funds and the accumulated cash in debt
service funds with all other available cash and invests it according to the City's cash management
policies and practices. This sometimes produces a higher yield on the investments than is being paid on
the related debt. The federal tax code refers to this higher yield as arbitrage. Under certain circumstances
the earnings from these higher yields must be rebated to the federal government. Federal law requires
that arbitrage be calculated and rebated at the end of each five-year period that tax exempt debt is
outstanding, as well as at maturity. The City does not report arbitrage until the liability is due and
payable.
Long-term liability activity for the year ended December 31, 2020 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 625,000$ -$ (625,000)$ -$ -$
Improvement Bonds - 2009A 1,675,000 - (1,190,000) 485,000 165,000
Improvement Bonds - 2011A 795,000 - (110,000) 685,000 110,000
Improvement Bonds - 2012A 1,430,000 - (180,000) 1,250,000 170,000
Improvement Bonds - 2013A 2,050,000 - (225,000) 1,825,000 220,000
Improvement Bonds - 2015A 1,940,000 - (185,000) 1,755,000 180,000
Improvement Bonds - 2016A 2,795,000 - (245,000) 2,550,000 240,000
Improvement Bonds - 2017A 4,250,000 - (330,000) 3,920,000 325,000
15,560,000 - (3,090,000) 12,470,000 1,410,000
Bond premiums 434,936 - (37,624) 397,312 -
Bond discounts (23,952) - 9,002 (14,950) -
Subtotal 15,970,984 - (3,118,622) 12,852,362 1,410,000
Total bonds payable 15,970,984 - (3,118,622) 12,852,362 1,410,000
Compensated absences payable 801,503 792,459 (667,932) 926,030 419,170
Governmental activity
long-term liabilities 16,772,487$ 792,459$ (3,786,554)$ 13,778,392$ 1,829,170$
Business-type activities
Compensated absences payable 116,602$ 58,887$ (87,744)$ 87,745$ 53,070$
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City of Crystal
Notes to Financial Statements
NOTE 6 – LONG-TERM DEBT (CONTINUED)
D. Minimum Debt Payments
Minimum annual principal and interest payments required to retire long-term liabilities:
Year Ending
December 31, Principal Interest
2021 1,410,000$ 320,786$
2022 1,370,000 285,234
2023 1,350,000 248,214
2024 1,165,000 213,971
2025 1,150,000 182,765
2026-2030 4,655,000 484,538
2031-2033 1,370,000 49,588
Total 12,470,000$ 1,785,096$
G.O. Improvement Bonds
Governmental Activities
Total delinquent special assessments receivable for all funds for the years ending December 31, 2020
and 2019, were $383,349 and $332,331, respectively.
Compensated absences are liquidated by the General, EDA, Water, Sanitary Sewer, or Storm Drainage
funds, depending upon where employees' time is assigned.
NOTE 7 – TAX INCREMENT FINANCING REVENUE NOTES
The City has entered into a private redevelopment agreement regarding certain tax increment properties.
Reimbursements for this agreement is in the form of tax increment revenue notes. This note provides for
the payment of principal, equal to the project redevelopment costs, plus interest at various rates.
Payments on the note will be made at the lesser of the note payment or the actual net tax increment
received (or a reduced percentage received in certain cases), as stated in the agreement. Payments are
first applied to accrued interest and then to principal balances. The note is cancelled at the end of the
agreement term whether or not they have been repaid in full. The outstanding principal balance as of
December 31, 2020, is as follows:
Maturity Amount
Dates Outstanding
Tax Incrememnt Revenue Note 2014 2016-2026 5.00 %233,408$
Rates
Interest
Due to the nature of this note (in that repayment is required only if sufficient tax increments are
received), the outstanding amount is not reported in the accompanying financial statements. The City's
position is that this is an obligation to assign future and uncertain revenue sources and, as such, is not
actual debt in substance. Payments of principal and interest on tax increment revenue notes are paid out
of the TIF Districts special revenue fund.
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City of Crystal
Notes to Financial Statements
NOTE 8 – CONDUIT DEBT OBLIGATIONS
From time to time the City has issued revenue bonds to provide financial assistance to private-sector
entities for the acquisition and construction of facilities deemed to be in the public interest. The bonds
are secured by the property financed and are payable solely from payments received on the underlying
mortgage loans.
Upon repayment of the bonds, ownership of the acquired facilities transfers to the private-sector entity
served by the bond issue. Neither the City or the State, nor any political subdivision thereof, is obligated
in any manner for repayment of the bonds. Accordingly, the bonds are not reported as liabilities in the
accompanying financial statements.
As of December 31, 2020, there were four debt issues outstanding. The aggregate original issue amounts
and principal balances outstanding as of December 31, 2020, are as follows:
Original Principal
Name of Issue Year Issue Balance
LOGIS Government Facilities Revenue Bonds 2006 $ 6,000,000 $ 2,462,984
Crystal Leased Housing Multi Family Housing 2014 14,300,000 13,500,000
$ 20,300,000 $ 15,962,984
NOTE 9 – PENSION PLANS
The City participates in various pension plans, total pension expense for the year ended December 31,
2020, was $638,241. The components of pension expense are noted in the following plan summaries.
The General Fund, Water Fund, Sewer Fund, and Storm Drainage Fund typically liquidate the liability
related to pensions.
Public Employees' Retirement Association
A. Plan Description
The City participates in the following cost-sharing multiple-employer defined benefit pension plans
administered by PERA. PERA's defined benefit pension plans are established and administered in
accordance with Minnesota Statutes, Chapters 353 and 356. PERA's defined benefit pension plans are
tax qualified plans under Section 401(a) of the Internal Revenue Code.
General Employees Retirement Plan
All full-time and certain part-time employees of the City are covered by the General Employees Plan.
General Employees Plan members belong to the Coordinated Plan. Coordinated Plan members are
covered by Social Security.
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City of Crystal
Notes to Financial Statements
NOTE 9 – PENSION PLANS (CONTINUED)
Public Employees' Retirement Association (Continued)
A. Plan Description (Continued)
Public Employees Police and Fire Plan
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 members is 1.2% for each of the first 10 years
of service and 1.7% for each additional year. Under Method 2, the accrual rate for Coordinated members
is 1.7% for all years of service. For members hired prior to July 1, 1989, a full annuity is available when
age plus years of service equal 90 and normal retirement age is 65. For members hired on or after July 1,
1989, normal retirement age is the age for unreduced Social Security benefits capped at 66.
Benefit increases are provided to benefit recipients each January. Beginning in 2019, the postretirement
increase is 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.
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City of Crystal
Notes to Financial Statements
NOTE 9 – PENSION PLANS (CONTINUED)
Public Employees' Retirement Association (Continued)
B. Benefits Provided (Continued)
Police and Fire Plan Benefits
Benefits for the Police and Fire Plan members first hired after June 30, 2010, but before July 1, 2014,
vest on a prorated basis from 50% after five years up to 100% after 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. For Police and Fire Plan members who were first hired prior to July 1, 1989, a
full annuity is available when age plus years of service equal at least 90.
Benefit increases are provided to benefit recipients each January. Beginning in 2019, the postretirement
increase was 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 fiscal year
2020 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, 2020, were $350,479.
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 11.3% of pay to 11.8% and employer rates
increased from 16.95% to 17.7% on January 1, 2020. The City's contributions to the Police and Fire
Fund for the year ended December 31, 2020, were $562,542. The City's contributions were equal to the
required contributions as set by state statute.
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City of Crystal
Notes to Financial Statements
NOTE 9 – PENSION PLANS (CONTINUED)
Public Employees' Retirement Association (Continued)
D. Pension Costs
General Employees Fund Pension Costs
At December 31, 2020, the City reported a liability of $3,819,106 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. 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 $117,652. The net pension liability was measured as of June 30, 2020, and the total pension
liability used to calculate the net pension liability was determined by an actuarial valuation as of that
date. The City's proportionate share of the net pension liability was based on the City's contributions
received by PERA during the measurement period for employer payroll paid dates from July 1, 2019,
through June 30, 2020, relative to the total employer contributions received from all of PERA's
participating employers. The City's proportionate share was 0.0637%, at the end of the measurement
period and 0.0633% for the beginning of the period.
City's proportionate share of the net pension liability 3,819,106$
State of Minnesota's proportionate share of the net pension
liability associated with the City 117,652
Total 3,936,758$
For the year ended December 31, 2020, the City recognized pension expense of $87,870 for its
proportionate share of General Employees Plan's pension expense. Included in the amount, the City
recognized $10,239 as pension expense (and grant revenue) for its proportionate share of the State of
Minnesota's contribution of $16 million to the General Employees Fund.
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City of Crystal
Notes to Financial Statements
NOTE 9 – PENSION PLANS (CONTINUED)
Public Employees' Retirement Association (Continued)
D. Pension Costs (Continued)
General Employees Fund Pension Costs (Continued)
At December 31, 2020, the City reported its proportionate share of the General Employees Plan's
deferred outflows of resources and deferred inflows of resources, related to pensions from the following
sources:
Differences between expected and actual economic experience 34,624$ 14,449$
Changes in actuarial assumptions - 141,742
Net collective difference between projected
and actual investment earnings 48,222 -
Changes in proportion 16,587 113,921
Contributions paid to PERA subsequent
to the measurement date 175,240 -
Total 274,673$ 270,112$
Deferred
Outflows of
Resources
Deferred
Inflows of
Resources
The $175,240 reported as deferred outflows of resources related to pensions resulting from City
contributions subsequent to the measurement date will be recognized as a reduction of the net pension
liability in the year ended December 31, 2021. Other amounts reported as deferred outflows and
deferred inflows of resources related to pensions will be recognized in pension expense as follows:
Pension
Year Ending Expense
December 31, Amount
2021 (328,429)$
2022 (12,624)
2023 78,103
2024 92,271
Total (170,679)$
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City of Crystal
Notes to Financial Statements
NOTE 9 – PENSION PLANS (CONTINUED)
Public Employees' Retirement Association (Continued)
D. Pension Costs (Continued)
Police and Fire Fund Pension Costs
At December 31, 2020, the City reported a liability of $3,702,155 for its proportionate share of the
Police and Fire Fund's net pension liability. The net pension liability was measured as of June 30, 2020,
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, 2019, through June 30, 2020, relative to the total employer contributions received from all
of PERA's participating employers. At June 30, 2020, the City's proportionate share was 0.2828% at the
end of the measurement period and 0.2804% for the beginning of the period.
The State of Minnesota also contributed $13.5 million to the Police and Fire Fund in the plan fiscal year
ended June 30, 2020. The contribution consisted of $4.5 million in direct state aid that does meet the
definition of a special funding situation and $9 million in fire state aid that does not meet the definition
of a special funding situation. The $4.5 million direct state aid was paid on October 1, 2019. Thereafter,
by October 1 of each year, the State will pay $9 million to the Police and Fire Fund until full funding is
reached or July 1, 2048, whichever is earlier. The $9 million in fire state aid will continue until the fund
is 90% funded, or until the State Patrol Plan (administered by the Minnesota State Retirement System) is
90% funded, whichever occurs later.
As a result, the State of Minnesota is included as a non-employer contributing entity in the Police and
Fire Retirement Plan Schedule of Employer Allocations and Schedule of Pension Amounts by
Employer, Current Reporting Period Only (pension allocation schedules) for the $4.5 million in direct
state aid. Police and Fire Plan employers need to recognize their proportionate share of the State of
Minnesota's pension expense (and grant revenue) under GASB 68 special funding situation accounting
and financial reporting requirements. For the year ended December 31, 2020, the City recognized
pension expense of $548,152 for its proportionate share of the Police and Fire Plan's pension expense.
Included in this amount, the City recognized $27,011 as pension expense (and grant revenue) for its
proportionate share of the State of Minnesota's contribution of $4.5 million to the Police and Fire Fund.
The State of Minnesota is not included as a non-employer contributing entity in the Police and Fire
Pension Plan pension allocation schedules for the $9 million in fire state aid. The City also recognized
$87,797 for the year ended December 31, 2020, as revenue and an offsetting reduction of the net pension
liability for its proportionate share of the State of Minnesota's on-behalf contributions to the Police and
Fire Fund.
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City of Crystal
Notes to Financial Statements
NOTE 9 – PENSION PLANS (CONTINUED)
Public Employees' Retirement Association (Continued)
D. Pension Costs (Continued)
At December 31, 2020, the City reported its proportionate share of the Police and Fire Plan's deferred
outflows of resources and deferred inflows of resources related to pensions from the following sources.
Differences between expected and actual economic experience 160,330$ 152,103$
Changes in actuarial assumptions 1,073,392 2,147,046
Net collective difference between projected
and actual investment earnings 148,490 -
Changes in proportion 395,544 -
Contributions paid to PERA subsequent
to the measurement date 281,271 -
Total 2,059,027$ 2,299,149$
Deferred
Outflows of
Resources
Deferred
Inflows of
Resources
Police and Fire Fund Pension Costs (Continued)
The $281,271 reported as deferred outflows of resources related to pensions resulting from City
contributions subsequent to the measurement date will be recognized as a reduction of the net pension
liability in the year ended December 31, 2021. Other amounts reported as deferred outflows and inflows
of resources related to pensions will be recognized in pension expense as follows:
Pension
Year Ending Expense
December 31, Amount
2021 (135,100)$
2022 (783,593)
2023 207,414
2024 183,004
2025 6,882
Total (521,393)$
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City of Crystal
Notes to Financial Statements
NOTE 9 – PENSION PLANS (CONTINUED)
Public Employees' Retirement Association (Continued)
E. Actuarial Assumptions
The total pension liability in the June 30, 2020, 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, 2020 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 assumption changes were adopted by the Board and became effective with the
July 1, 2020, actuarial valuation. The most recent four-year experience study for Police and Fire Plan
was completed in 2020. The recommended assumptions for that plan was adopted by the Board and will
be effective with the July 1, 2021, actual valuation if approved by the Legislature.
The following changes in actuarial assumptions occurred in 2020:
General Employees Fund
Changes in Actuarial Assumptions:
The price inflation assumption was decreased from 2.5% to 2.25%.
The payroll growth assumption was decreased from 3.25% to 3.0%.
Assumed salary increase rates were changed as recommended in the June 30, 2019, experience
study. The net effect is assumed rates that average 0.25% less than previous rates.
Assumed rates of retirement were changed as recommended in the June 30, 2019, experience
study. The changes result in more unreduced (normal) retirements and slightly fewer Rule of 90
and early retirements.
Assumed rates of termination were changes as recommended in the June 30, 2019, experience
study. The new rates are based on service and are generally lower than the previous rates for
years 2-5 and slightly higher thereafter.
Assumed rates of disability were changed as recommended in the June 30, 2019, experience
study. The change results in fewer predicted disability retirements for males and females.
The base mortality table for healthy annuitants and employees was changed from the RP-2014
table to the Pub-2010 General Mortality table, with adjustments. The base mortality table for
disabled annuitants was changed from the RP-2014 disabled annuitant mortality table to the
Pub-2010 General/Teacher disabled annuitant mortality table, with adjustments.
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City of Crystal
Notes to Financial Statements
NOTE 9 – PENSION PLANS (CONTINUED)
Public Employees' Retirement Association (Continued)
E. Actuarial Assumptions (Continued)
General Employees Fund (Continued)
Changes in Actuarial Assumptions: (Continued)
The mortality improvement scale was changed from Scale MP-2018 to Scale MP-2019.
The assumed spouse age difference was changed from two years older for females to one year
older.
The assumed number of married male new retirees electing the 100% Joint and Survivor option
changed from 35% to 45%. The assumed number of married female new retirees electing the
100% Joint and Survivor option changed from 15% to 30%. The corresponding number of
married new retirees electing the Life annuity option was adjusted accordingly.
Changes in Plan Provisions:
Augmentation for current privatized members was reduced to 2.0% for the period July 1, 2020
through December 31, 2023, and 0.0% thereafter. Augmentation was eliminated for
privatizations occurring after June 30, 2020.
Police and Fire Fund
Changes in Actuarial Assumptions:
The mortality projection scale was changed from MP-2018 to MP-2019.
Changes in Plan Provisions:
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 %
International stocks 17.5 5.30
Bonds (fixed income) 20.0 0.75
Alternative assets (private markets) 25.0 5.90
Cash 2.0 0.00
Total 100 %
Target Allocation Long-Term Expected
7.1
78
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 2020 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 6,120,702$ 3,819,106$ 1,920,474$
1% Decrease in 1% Increase in
City's proportionate share of
the Police and Fire Fund
net pension liability 7,404,205$ 3,702,155$ 639,357$
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.
7.1
79
City of Crystal
Notes to Financial Statements
NOTE 9 – PENSION PLANS (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%
(.25%) 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 2020 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.
7.1
80
City of Crystal
Notes to Financial Statements
NOTE 10 – POST EMPLOYMENT HEALTH CARE PLAN (CONTINUED)
C. Contributions
Retirees contribute to the health care plan at the same rate as City employees. This results in the retirees
receiving an implicit rate subsidy. Contribution requirements are established by the City, based on the
contract terms with the health care plan provider. The required contributions are based on projected pay-
as-you-go financing requirements. For the year 2020, the City contributed $64,991 to the plan.
D. Members
As of January 1, 2020, the following were covered by the benefit terms:
Total employees without coverage 12
Employees with coverage 98
Total 110
E. Actuarial Assumptions
The total OPEB liability was determined by an actuarial valuation as of January 1, 2020, using the
following actuarial assumptions, applied to all periods included in the measurement, unless otherwise
specified:
Discount Rate 2.12%
Salary increases including inflation Based on the PERA Plan in which the
employee is a participant.
Healthcare cost trend increases 7.67% for FY2020, gradually decreasing over
ten years to an ultimate rate of 5.0% in
FY2028 and later years.
Mortality assumption Mortality rates were based on RP-2014
mortality tables with projected mortality
improvements based on scale MP-2018, and
other adjustments
Key Methods and Assumptions Used in Valuation of Total OPEB Liability
The actuarial assumptions used in the January 1, 2020, valuation were based on the results of an
actuarial experience study for the period January 1, 2019 – December 31, 2019.
F. Total OPEB Liability
The City's total OPEB liability of $1,785,874 was measured as of December 31, 2020, and was
determined by an actuarial valuation as of that date.
7.1
81
City of Crystal
Notes to Financial Statements
NOTE 10 – POST EMPLOYMENT HEALTH CARE PLAN (CONTINUED)
F. Total OPEB Liability (Continued)
Changes in the total OPEB liability are as follows:
Total
OPEB
Liability
Balances at January 1, 2020 2,476,900$
Changes for the year
Service cost 87,322
Interest 103,548
Differences between expected and actual
economic experience (1,025,507)
Changes of assumptions 208,602
Benefit payments (64,991)
Net changes (691,026)
Balances at December 31, 2020 1,785,874$
Changes of assumptions and other inputs reflect a change in the discount rate from 2.74% in 2019 to
2.12% in 2020.
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
(1.12%)(2.12%)(3.12%)
1,628,389$ 1,785,874$ 1,961,562$
Total OPEB Liability/(Asset)
7.1
82
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
2,027,146$ 1,785,874$ 1,582,738$
Total OPEB Liability/(Asset)
(6.67% decreasing to
4.0%)
(7.67% decreasing to
5.0%)
(8.67% 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, 2020, the City recognized OPEB expense of $25,075. At
December 31, 2020, the City reported deferred outflows of resources and deferred inflows of resources
as shown below.
Deferred Deferred
Outflows of Inflows of
Resources Resources
Difference beteen expected and actual economic experience -$ 912,552$
Changes in actuarial assumptions 241,055 124,455
Contributions made subsequent to the
measurement date 64,966 -
Total 306,021$ 1,037,007$
The $64,966 reported as deferred outflows of resources resulting from contributions subsequent to the
measurement date will be recognized as a reduction of the OPEB liability in the year ended
December 31, 2021. Other amounts reported as deferred outflows of resources will be recognized in
OPEB expense as follows:
(98,872)$
(98,872)
(98,872)
(98,872)
(98,872)
(301,592)
Total (795,952)$
2022
2023
2024
2025
Thereafter
2021
7.1
83
City of Crystal
Notes to Financial Statements
NOTE 11 – FUND BALANCES
A. Classifications
A summary of governmental fund balance classifications at December 31, 2020, is as follows:
Capital
Project
Fund
General Debt Street Other
Fund Service Reconstruction Funds Total
Fund balances
Nonspendable
Inventory 9,012$ -$ -$ -$ 9,012$
Prepaid expenses 17,386 - - - 17,386
Total nonspendable 26,398 - - - 26,398
Restricted
Housing and Redevelopment
Assistance - - - 1,038,382 1,038,382
Debt service - 4,506,534 - - 4,506,534
DWI-related enforcement,
Training, and education - - - 73,496 73,496
Total restricted - 4,506,534 - 1,111,878 5,618,412
Committed
Compensated absences 926,030 - - - 926,030
Housing and redevelopment
Assistance - - - 2,438,443 2,438,443
Capital outlay - street
reconstruction - - 6,803,180 - 6,803,180
Capital outlay - police equipment - - - 2,766,889 2,766,889
Capital outlay - cable TV equipment - - - 238,385 238,385
Capital outlay - park improvement - - - 1,373,663 1,373,663
Total committed 926,030 - 6,803,180 6,817,380 14,546,590
Assigned
Police Department purposes - - - 74,614 74,614
Unassigned 7,405,222 - - - 7,405,222
Total fund balances 8,357,650$ 4,506,534$ 6,803,180$ 8,003,872$ 27,671,236$
Major Funds
7.1
84
City of Crystal
Notes to Financial Statements
NOTE 12 – RISK MANAGEMENT
The City is exposed to various risks of loss related to torts; theft of, damage to, and destruction of assets;
errors and omissions; injuries to employees; and natural disasters. As such, the City participates in the
League of Minnesota Cities Insurance Trust (LMCIT), a public entity risk pool currently operating as a
common risk management and insurance program for cities that are parties to a joint powers agreement.
The LMCIT is self-sustaining through member premiums and reinsures through commercial companies
for claims in excess of pre-determined amounts. The LMCIT provides coverage for liability, errors and
omissions, worker's compensation, auto, and other miscellaneous types of coverage.
The City's Self-Insurance Fund (an Internal Service Fund) is used to account for and finance its
uninsured risks of loss. The Self-Insurance Fund provides coverage for up to a maximum of $25,000 for
each general liability or property damage claim, up to $75,000 per year. The City purchases commercial
insurance for claims in excess of coverage provided by this fund, as well as for all other risks of loss.
Settled claims exceeded commercial coverage in 2020. There were no significant reductions in insurance
coverage during 2020.
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 $291,425 is included in accounts payable of the
Self-Insurance Fund at December 31, 2020. 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 $75,000 if claims are
open from more than one year.
Changes in claims liability for 2020 and 2019 are as follows:
Year
Claims
Liability
Beginning of
Year
Current Year
Claims and
Changes in
Estimates
Payments on
Claims
Claims
Liability End of
Year
2019 23,500$ 290,339$ 22,414$ 291,425$
2020 291,425 (251,223) 19,528 20,674
7.1
85
City of Crystal
Notes to Financial Statements
NOTE 13 – JOINT VENTURES AND JOINTLY GOVERNED ORGANIZATIONS
A. Joint Ventures
1. Golden Valley, Crystal, and New Hope Joint Water Commission
The City is a member of a joint powers agreement, together with the cities of Golden Valley and
New Hope, which established a Joint Water Commission (JWC). The JWC was created in 1963 to
provide for the creation and maintenance of a joint water supply, storage, and distribution system
through which water purchased from the City of Minneapolis can be supplied to the population of
the member cities.
The city council of each member city is entitled to appoint one member to the JWC. Original
construction costs were allocated to the member cities based on percentages agreed upon in the joint
powers agreement. All property acquired under this agreement is owned by the members in
proportion to the amount of construction costs paid by each member city. All subsequent operating
and maintenance costs are apportioned to, and paid by, each member city on the basis of water
usage.
The City's equity interest and its share of the net income (loss) of the JWC are reported in the City's
Water Fund (an Enterprise Fund). The City's equity interest in the JWC at December 31, 2020, is
$4,858,486.
Due to concurrent timing of the City's fiscal year end and audit of the JWC, the City reports its
equity interest in the JWC with a one-year lag. The following financial information is from the
JWC's audited financial statements for the year ended December 31, 2019:
Total assets 18,170,639$
Total liabilities 567,652
Net position
Net investment in capital assets 10,902,498
Restricted for capital improvements 4,027,733
Restricted for emergency water supply 1,700,000
Unrestricted 972,756
Total net position 17,602,987$
Total program expenses 7,328,133$
Total program revenues 7,921,496
Net program revenue 593,363
Total general revenues 269,854
Change in net position 863,217
Net position
Beginning of year 16,739,770
End of year 17,602,987$
7.1
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)
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).
The District is governed by a seven-member board of directors that includes one Crystal City
Council member who is appointed by resolution, one public member appointed by the City Council,
and the City Manager, who serves ex officio.
As required by the agreement, the City transferred fire department equipment to the District,
retaining its rights to these assets in the event of the District's dissolution. The equipment transferred
had a cost value of $1,923,820. The District recorded only the rolling stock received and recorded it
at its estimated fair value. Other equipment items were not capitalized.
The City's equity interest and its share of the net income (loss) of the District are reported only in the
government-wide financial statements. It is not reported in the General Fund because the equity
interest represents equity primarily in capital assets vs. financial resources. The City's equity interest
in the District at December 31, 2019, is $1,131,737.
Due to concurrent timing of the City's fiscal year end and audit of the District, the City reports its
equity interest in the District with a one-year lag. The following financial information is from the
District's audited financial statements for the year ended December 31, 2019:
Total assets and deferred outflows of resources 4,839,218$
Total liabilities and deferred inflows of resources 3,208,316
Net position
Net investment in capital assets 1,520,808
Restricted for donor-approved purposes 36,300
Unrestricted 73,794
Total net position 1,630,902$
Total program expenses 2,884,624$
Total program revenues 2,577,768
Net program expense (306,856)
Total general revenues 16,259
Change in net position (290,597)
Net position
Beginning of year 1,921,499
End of year 1,630,902$
7.1
87
City of Crystal
Notes to Financial Statements
NOTE 13 – JOINT VENTURES AND JOINTLY GOVERNED ORGANIZATIONS
(CONTINUED)
A. Joint Ventures (Continued)
2. West Metro Fire-Rescue District (Continued)
The activities of the District will continue to be funded entirely by the cities of Crystal and New
Hope, with each city contributing its proportionate share of the annual operating budget in monthly
installments. According to a formula in the agreement, the City's share of the District's operating
budget is 49.8%.
Audited financial statements are available from West Metro Fire-Rescue District, 4251 Xylon
Avenue N., New Hope, MN 55428.
B. Jointly Governed Organizations
1. Local Government Information Systems Association (LOGIS)
The City is a member of LOGIS, a consortium of Minnesota government entities that provides
computerized data processing and support services to its members. LOGIS is legally separate from
the City, the City does not appoint a voting majority of the Board, and it is fiscally independent of
the City. The amount paid to LOGIS for services received in 2020 was $698,020 which was
allocated to various funds based on application usage.
2. LOGIS Insurance Group
This group provides cooperative purchasing of health and life insurance benefits for over 40
government entities. Payments for this group are made by the City to HealthPartners and are directed
to LOGIS Insurance Group.
3. Pets Under Police Security (PUPS)
The City is party to a joint powers agreement, together with five other cities, which created an
organization to provide for the efficient and economical impoundment of animals in a jointly owned
and operated facility. The amount paid to PUPS for services received in 2020 was $18,128.
4. Bassett Creek Watershed Management Commission (BCWMC)
The City is party to a joint powers agreement, together with eight other cities, the purpose of which
is to provide for cooperative planning, usage, and improvement of the Bassett Creek watershed. The
amount paid to BCWMC in 2020 was $29,062.
5. Shingle Creek Watershed Management Commission (SCWMC)
The City is party to a joint powers agreement, together with eight other cities, which was created to
protect and manage the water resources of the Shingle Creek watershed. The amount paid to
SCWMC in 2020 was $28,839.
7.1
88
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 2020 was $344,633.
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 AND CONTINGENCIES
A. Commitments
The City has in process various multi-year construction projects which were not completed in the
current fiscal year. As of December 31, 2020, outstanding commitments for these multi-year projects
total approximately $28,561,614.
B. Contingencies
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, 2020, will not have
a material adverse effect on the financial condition of the City.
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, 2020,
cannot be determined at this time.
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.
7.1
89
City of Crystal
Notes to Financial Statements
NOTE 16 – CHANGE IN ACCOUNTING PRINCIPLE
For the year ended December 31, 2020, the City established proprietary internal service funds for
activity related to fleet, information technology, and City buildings. These adjustments affected
beginning fund balance of nonmajor governmental funds in the amount of ($7,570,352). The
adjustments affected beginning net position for internal service funds in the amount of $22,617,649.
NOTE 17 – NEW STANDARDS ISSUED BUT NOT YET IMPLEMENTED
GASB Statement No. 87, Leases establishes a single model for lease accounting based on the
foundational principle that leases are financings of the right to use an underlying asset. Under this
statement, a lessee is required to recognize a lease liability and an intangible right-to-use lease asset, and
a lessor is required to recognize a lease receivable and a deferred inflow of resources, thereby enhancing
the relevance and consistency of information about governments' leasing activities. This statement will
be effective for the year ending December 31, 2022.
7.1
90
7.1
91
REQUIRED SUPPLEMENTARY INFORMATION
7.1
December 31, December 31, December 31,
2018 2019 2020
Total OPEB Liability
Service cost 105,872$ 116,648$ 87,322$
Interest 89,846 89,084 103,548
Differences between expected and actual experience - - (1,025,507)
Changes of assumptions 84,810 (161,829) 208,602
Benefit payments (77,076) (79,989) (64,991)
Net change in total OPEB liability 203,452 (36,086) (691,026)
Beginning of year 2,309,534 2,512,986 2,476,900
End of year 2,512,986$ 2,476,900$ 1,785,874$
6,600,000$ 6,800,000$ 7,300,000$
38.1% 36.4% 24.5%
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
7.1
December 31, December 31, December 31,
2018 2019 2020
Actuarially determined contribution 77,076$ 79,989$ 64,991$
Contributions in relation to the actuarially determined contribution 77,076 79,989 64,991
Contribution deficiency (excess) -$ -$ -$
6,600,000$ 6,800,000$ 7,300,000$
1.17% 1.18% 0.89%
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
7.1
City's
Covered
Payroll
2020 0.0637% 3,819,106$ 117,652$ 3,936,758$ 4,539,680$ 84.13% 79.06%
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)
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
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
2020 0.2828% 3,702,155$ 87,797$ 3,789,952$ 3,123,429$ 118.53% 87.19%
2019 0.2804% 2,947,287 - 2,947,287 2,892,478 101.89% 89.26%
2018 0.2707% 2,861,020 - 2,861,020 2,852,679 100.29% 88.84%
2017 0.2600% 3,486,909 - 3,486,909 2,664,136 130.88% 85.43%
2016 0.2430% 9,730,143 - 9,730,143 2,343,136 415.26% 63.88%
2015 0.2400% 2,726,962 - 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
7.1
2020 350,479$ 350,479$ -$ 4,673,053$ 7.50%
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.
2020 562,542$ 562,542$ -$ 3,178,203$ 17.70%
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
7.1
96
7.1
City of Crystal
Notes to Required Supplementary Information
97
GENERAL EMPLOYEES FUND
2020 Changes
Changes in Actuarial Assumptions
The price inflation assumption was decreased from 2.5% to 2.25%.
The payroll growth assumption was decreased from 3.25% to 3.0%.
Assumed salary increase rates were changed as recommended in the June 30, 2019, experience
study. The net effect is assumed rates that average 0.25% less than previous rates.
Assumed rates of retirement were changed as recommended in the June 30, 2019, experience
study. The changes result in more unreduced (normal) retirements and slightly fewer Rule of 90
and early retirements.
Assumed rates of termination were changes as recommended in the June 30, 2019, experience
study. The new rates are based on service and are generally lower than the previous rates for
years 2-5 and slightly higher thereafter.
Assumed rates of disability were changed as recommended in the June 30, 2019, experience
study. The change results in fewer predicted disability retirements for males and females.
The base mortality table for healthy annuitants and employees was changed from the RP-2014
table to the Pub-2010 General Mortality table, with adjustments. The base mortality table for
disabled annuitants was changed from the RP-2014 disabled annuitant mortality table to the
Pub-2010 General/Teacher disabled annuitant mortality table, with adjustments.
The mortality improvement scale was changed from Scale MP-2018 to Scale MP-2019.
The assumed spouse age difference was changed from two years older for females to one year
older.
The assumed number of married male new retirees electing the 100% Joint and Survivor option
changed from 35% to 45%. The assumed number of married female new retires electing the
100% Joint and Survivor option changed from 15% to 30%. The corresponding number of
married new retirees electing the Life annuity option was adjusted accordingly.
Changes in Plan Provisions
Augmentation for current privatized members was reduced to 2.0% for the period July 1, 2020
through December 31, 2023, and 0.0% thereafter. Augmentation was eliminated for
privatizations occurring after June 30, 2020.
2019 Changes
Changes in Actuarial Assumptions
The mortality projection scale was changed from MP-2017 to MP-2018.
Changes in Plan Provisions
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
The mortality projection scale was changed from MP-2015 to MP-2017.
The assumed benefit increase was changed from 1.0% per year through 2044 and 2.5% per year
thereafter to 1.25% per year.
7.1
City of Crystal
Notes to Required Supplementary Information
98
GENERAL EMPLOYEES FUND (CONTINUED)
2018 Changes Continued)
Changes in Plan Provisions
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.
Interest credited on member contributions decreased from 4.00% to 3.00%, beginning July 1,
2018.
Deferred augmentation was changed to 0.00%, effective January 1, 2019. Augmentation that has
already accrued for deferred members will still apply.
Contribution stabilizer provisions were repealed.
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.
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.
Actuarial equivalent factors were updated to reflect revised mortality and interest assumptions.
2017 Changes
Changes in Actuarial Assumptions
The CSA loads were changed from 0.8% for active members and 60% for vested and non-vested
deferred members. The revised CSA loads are now 0.0% for active member liability, 15% for
vested deferred member liability and 3% for non-vested deferred member liability.
The assumed post-retirement benefit increase rate was changed from 1.0% per year for all years
to 1.0% per year through 2044 and 2.5% per year thereafter.
Changes in Plan Provisions
The State's contribution for the Minneapolis Employees Retirement Fund equals $16,000,000 in
2017 and 2018, and $6,000,000 thereafter.
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
The assumed post-retirement benefit increase rate was changed from 1.0% per year through 2035
and 2.5% per year thereafter to 1.0% per year for all future years.
The assumed investment return was changed from 7.9% to 7.5%. The single discount rate was
changed from 7.9% to 7.5%.
Other assumptions were changed pursuant to the experience study dated June 30, 2015. The
assumed future salary increases, payroll growth, the inflation was decreased by 0.25% to 3.25%
for payroll growth and 2.50% for inflation.
Changes in Plan Provisions
There have been no changes since the prior valuation.
7.1
City of Crystal
Notes to Required Supplementary Information
99
GENERAL EMPLOYEES FUND (CONTINUED)
2015 Changes
Changes in Actuarial Assumptions
The assumed post-retirement benefit increase rate was changed from 1.0% per year through 2030
and 2.5% per year thereafter to 1.0% per year through 2035 and 2.5% per year thereafter.
Changes in Plan Provisions
On January 1, 2015, the Minneapolis Employees Retirement Fund was merged into the General
Employees Fund, which increased the total pension liability by $1.1 billion and increased the
fiduciary plan net position by $892 million. Upon consolidation, state and employer
contributions were revised; the State's contribution of $6.0 million, which meets the special
funding situation definition, was due September 2015.
7.1
City of Crystal
Notes to Required Supplementary Information
100
POLICE AND FIRE FUND
2020 Changes
Changes in Actuarial Assumptions
The mortality projection scale was changed from MP-2018 to MP-2019.
Changes in Plan Provisions
There have been no changes since the prior valuation.
2019 Changes
Changes in Actuarial Assumptions
The mortality projection scale was changed from MP-2017 to MP-2018.
Changes in Plan Provisions
There have been no changes since the prior valuation.
2018 Changes
Changes in Actuarial Assumptions
The mortality projection scale was changed from MP-2016 to MP-2017.
Changes in Plan Provisions
Postretirement benefit increases were changed to 1.00% for all years, with no trigger.
An end date of July 1, 2048, was added to the existing $9.0 million state contribution.
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.
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.
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.
Interest credited on member contributions decreased from 4.00% to 3.00%, beginning July 1,
2018.
Deferred augmentation was changed to 0.00%, effective January 1, 2019. Augmentation that has
already accrued for deferred members will still apply.
Actuarial equivalent factors were updated to reflect revised mortality and interest assumptions.
2017 Changes
Changes in Actuarial Assumptions
Assumed salary increases were changed as recommended in the June 30, 2016, experience study.
The net effect is proposed rates that average 0.34% lower than the previous rates.
Assumed rates of retirement were changed, resulting in fewer retirements.
The CSA load was 30% for vested and non-vested deferred members. The CSA has been
changed to 33% for vested members and 2% for non-vested members.
The base mortality table for healthy annuitants was changed from the RP-2000 fully generational
table to the RP-2014 fully generational table (with a base year of 2006), with male rates adjusted
by a factor of 0.96. The mortality improvement scale was changed from Scale AA to Scale MP-
2016. The base mortality table for disabled annuitants was changed from the RP-2000 disabled
mortality table to the mortality tables assumed for healthy retirees.
7.1
City of Crystal
Notes to Required Supplementary Information
101
POLICE AND FIRE FUND (CONTINUED)
2017 Changes (Continued)
Changes in Actuarial Assumptions (Continued)
Assumed termination rates were decreased to 3% for the first three years of service. Rates
beyond the select period of three years were adjusted, resulting in more expected terminations
overall.
Assumed percentage of married female members was decreased from 65% to 60%.
Assumed age difference was changed from separate assumptions for male members (wives
assumed to be three years younger) and female members (husbands assumed to be four years
older) to the assumption that males are two years older than females.
The assumed percentage of female members electing Joint and Survivor annuities was increased.
The assumed post-retirement benefit increase rate was changed from 1% for all years to 1% per
year through 2064 and 2.5% thereafter.
The single discount rate was changed from 5.6% per annum to 7.5% per annum.
Changes in Plan Provisions
There have been no changes since the prior valuation.
2016 Changes
Changes in Actuarial Assumptions
The assumed post-retirement benefit increase rate was changed from 1.0% per year through 2037
and 2.5% thereafter to 1.0% per year for all future years.
The assumed investment return was changed from 7.9% to 7.5%. The single discount rate
changed from 7.9% to 5.6%.
The single discount rate changed from 7.90% to 5.60%.
The assumed future salary increases, payroll growth, and inflation were decreased by 0.25% to
3.25% for payroll growth and 2.50% for inflation.
Changes in Plan Provisions
There have been no changes since the prior valuation.
2015 Changes
Changes in Actuarial Assumptions
The assumed post-retirement benefit increase rate was changed from 1.0% per year through 2030
and 2.5% per year thereafter to 1.0% per year through 2037 and 2.5% per year thereafter.
Changes in Plan Provisions
The post-retirement benefit increase to be paid after attainment of the 90% funding threshold was
changed, from inflation up to 2.5%, to a fixed rate of 2.5%.
7.1
City of Crystal
Notes to Required Supplementary Information
102
POST EMPLOYMENT HEALTH CARE PLAN
2020 Changes
Changes in Actuarial Assumptions
The discount rate decreased from 2.74% in 2019 to 2.12% in 2020.
2019 Changes
Changes in Actuarial Assumptions
The discount rate decreased from 4.09% in 2018 to 2.74% in 2019.
2018 Changes
Changes in Actuarial Assumptions
The discount rate increased from 3.44% in 2017 to 4.09% in 2018.
7.1
103
SUPPLEMENTARY INFORMATION
7.1
104
7.1
105
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.
EDA
This blended component unit is used to account for the City's housing and redevelopment activities.
Significant revenue sources include property taxes, intergovernmental revenues, and charges for
services.
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.
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.
Park Improvement
This fund is used to accumulate funds to pay for park improvements. The main financing sources
include property taxes and interest.
Police Equipment Revolving
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.
7.1
TIF Districts
Special Revenue Special Projects EDA Total
Assets
Cash and investments 1,049,041$ 148,919$ 2,159,000$ 3,356,960$
Taxes receivable - - 7,281 7,281
Special assessments receivable - - 80,000 80,000
Due from other governments - 355 - 355
Land held for resale - - 309,000 309,000
Total assets 1,049,041$ 149,274$ 2,555,281$ 3,753,596$
Liabilities
Accounts payable 9,721$ 1,164$ 19,141$ 30,026$
Due to other governments 938 - 1,893 2,831
Salaries and benefits payable - - 8,523 8,523
Total liabilities 10,659 1,164 29,557 41,380
Deferred Inflows of Resources
Unavailable revenue - property taxes - - 7,281 7,281
Unavailable revenue - special assessments - - 80,000 80,000
Total deferred inflows of resources - - 87,281 87,281
Fund Balances
Restricted 1,038,382 73,496 - 1,111,878
Committed - - 2,438,443 2,438,443
Assigned - 74,614 - 74,614
Total fund balances 1,038,382 148,110 2,438,443 3,624,935
Total liabilities, deferred inflow of
resouces, and fund balances 1,049,041$ 149,274$ 2,555,281$ 3,753,596$
106
December 31, 2020
Special Revenue
City of Crystal
Combining Balance Sheet -
Nonmajor Governmental Funds
7.1
Cable TV
Equipment
Park
Improvement
Police
Equipment
Revolving Fleet
Information
Technology City Buildings
238,405$ 1,185,687$ 2,778,653$ -$ -$ -$
- 1,957 - - - -
- - - - - -
- 188,072 - - - -
- - - - - -
238,405$ 1,375,716$ 2,778,653$ -$ -$ -$
20$ 96$ 11,764$ -$ -$ -$
- - - - - -
- - - - - -
20 96 11,764 - - -
- 1,957 - - - -
- - - - - -
- 1,957 - - - -
- - - - - -
238,385 1,373,663 2,766,889 - - -
- - - - - -
238,385 1,373,663 2,766,889 - - -
238,405$ 1,375,716$ 2,778,653$ -$ -$ -$
107
Capital Projects
7.1
108
7.1
Capital Projects
Total
Total
Governmental
Funds
Assets
Cash and investments 4,202,745$ 7,559,705$
Taxes receivable 1,957 9,238
Special assessments receivable - 80,000
Due from other governments 188,072 188,427
Land held for resale - 309,000
Total assets 4,392,774$ 8,146,370$
Liabilities
Accounts payable 11,880$ 41,906$
Due to other governments - 2,831
Salaries and benefits payable - 8,523
Total liabilities 11,880 53,260
Deferred Inflows of Resources
Unavailable revenue - property taxes 1,957 9,238
Unavailable revenue - special assessments - 80,000
Total deferred inflows of resources 1,957 89,238
Fund Balances
Restricted - 1,111,878
Committed 4,378,937 6,817,380
Assigned - 74,614
Total fund balances 4,378,937 8,003,872
Total liabilities, deferred inflow of
resouces, and fund balances 4,392,774$ 8,146,370$
109
City of Crystal
Combining Balance Sheet -
December 31, 2020
Nonmajor Governmental Funds
7.1
TIF Districts
Special Revenue Special Projects EDA Total
Revenues
Property taxes 344,822$ -$ 283,935$ 628,757$
Special assessments - - 20,107 20,107
Intergovernmental - 14,327 - 14,327
Fine and forfeitures - 12,740 - 12,740
Miscellaneous
Interest 39,551 - 79,686 119,237
Other - 30,253 - 30,253
Total revenues 384,373 57,320 383,728 825,421
Expenditures
Current
General government - 2,037 - 2,037
Public safety - 58,606 - 58,606
Recreation - 2,874 - 2,874
Economic development 243,918 - 389,121 633,039
Debt service
Principal 260,275 - - 260,275
Interest and other charges 22,707 - - 22,707
Capital outlay - 3,990 - 3,990
Total expenditures 526,900 67,507 389,121 983,528
Excess of revenues over
(under) expenditures (142,527) (10,187) (5,393) (158,107)
Other Financing Sources (Uses)
Proceeds from sale of capital asset - - - -
Net change in fund balances (142,527) (10,187) (5,393) (158,107)
Fund Balances
Beginning of year, as previously stated 1,180,909 158,297 2,443,836 3,783,042
Change in accounting principle (See Note 16)- - - -
Beginning of year, as restated 1,180,909 158,297 2,443,836 3,783,042
End of year 1,038,382$ 148,110$ 2,438,443$ 3,624,935$
110
City of Crystal
Combining Statement of Revenues, Expenditures, and Changes
in Fund Balances - Nonmajor Governmental Funds
Year Ended December 31, 2020
Special Revenue
7.1
Cable TV
Equipment
Park
Improvement
Police
Equipment
Revolving Fleet
Information
Technology City Buildings
-$ 359,138$ 154,938$ -$ -$ -$
- - - - - -
35,103 200,617 2,339 - - -
- - - - - -
8,228 57,118 110,668 - - -
- 14,432 - - - -
43,331 631,305 267,945 - - -
309 - - - - -
- - 2,734 - - -
- 15,883 - - - -
- - - - - -
- - - - - -
- - - - - -
- 647,590 440,800 - - -
309 663,473 443,534 - - -
43,022 (32,168) (175,589) - - -
- - 27,030 - - -
43,022 (32,168) (148,559) - - -
195,363 1,405,831 2,915,448 2,850,100 564,839 4,155,413
- - - (2,850,100) (564,839) (4,155,413)
195,363 1,405,831 2,915,448 - - -
238,385$ 1,373,663$ 2,766,889$ -$ -$ -$
Capital Projects
111
7.1
112
7.1
Capital Projects
Total
Total Other
Governmental
Funds
Revenues
Property taxes 514,076$ 1,142,833$
Special assessments - 20,107
Intergovernmental 238,059 252,386
Fine and forfeitures - 12,740
Miscellaneous -
Interest 176,014 295,251
Other 14,432 44,685
Total revenues 942,581 1,768,002
Expenditures
Current
General government 309 2,346
Public safety 2,734 61,340
Recreation 15,883 18,757
Economic development - 633,039
Debt service
Principal - 260,275
Interest and other charges - 22,707
Capital outlay 1,088,390 1,092,380
Total expenditures 1,107,316 2,090,844
Excess of revenues over
(under) expenditures (164,735) (322,842)
Other Financing Sources (Uses)
Proceeds from sale of capital asset 27,030 27,030
Net change in fund balances (137,705) (295,812)
Fund Balances
Beginning of year, as previously stated 12,086,994 15,870,036
Change in accounting principle (See Note 16)(7,570,352) (7,570,352)
Beginning of year, as restated 4,516,642 8,299,684
End of year 4,378,937$ 8,003,872$
113
Year Ended December 31, 2020
City of Crystal
Combining Statement of Revenues, Expenditures, and Changes
in Fund Balances - Nonmajor Governmental Funds
7.1
Original Final
Actual
Amounts
Revenues
Property taxes 205,000$ 205,000$ 344,822$ 139,822$
Interest 12,000 12,000 39,551 27,551
Total revenues 217,000 217,000 384,373 167,373
Expenditures
Current
Community development 224,575 224,575 243,918 19,343
Debt service
Principal - - 260,275 260,275
Interest and other charges - - 22,707 22,707
Total expenditures 224,575 224,575 526,900 302,325
Net change in fund balances (7,575)$ (7,575)$ (142,527) (134,952)$
Fund Balance
Beginning of year 1,180,909
End of year 1,038,382$
114
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, 2020
7.1
Original Final
Actual
Amounts
Revenues
Property taxes 282,744$ 282,744$ 283,935$ 1,191$
Special assessments - - 20,107 20,107
Charges for services 12,000 12,000 - (12,000)
Investment income 28,000 28,000 79,686 51,686
Total revenues 322,744 322,744 383,728 60,984
Expenditures
Current
Community development 411,303 411,303 389,121 (22,182)
Net change in fund balances (88,559)$ (88,559)$ (5,393) 83,166$
Fund Balances
Beginning of year 2,443,836
End of year 2,438,443$
See notes to financial statements.115
Budgeted Amounts
Variance with
Final Budget
City of Crystal
Statement of Revenues, Expenditures, and
Changes in Fund Balances -
Budget and Actual - EDA - Special Revenue
Year Ended December 31, 2020
7.1
City of Crystal
Statement of Revenues, Expenditures, and
Changes in Fund Balances -
Budget and Actual
Street Reconstruction - Capital Projects
Year Ended December 31, 2020
Original Final
Actual
Amounts
Revenues
Property taxes 110,144$ 110,144$ 110,144$ -$
Special assessments - - 600,322 600,322
Intergovernmental 230,000 230,000 1,013,257 783,257
Investment income 76,235 76,235 319,054 242,819
Miscellaneous revenues - - 28,933 28,933
Total revenues 416,379 416,379 2,071,710 1,655,331
Expenditures
Public works - capital outlay 806,350 806,350 2,047,448 1,241,098
Net change in fund balances (389,971)$ (389,971)$ 24,262 414,233$
Fund Balance
Beginning of year 6,778,918
End of year 6,803,180$
116
Budgeted Amounts
Variance with
Final Budget
7.1
City of Crystal
Statement of Revenues, Expenditures, and
Changes in Fund Balances -
Budget and Actual
Park Improvement - Capital Projects
Year Ended December 31, 2020
Original Final
Actual
Amounts
Revenues
Property taxes 358,914$ 358,914$ 359,138$ 224$
Intergovernmental - - 200,617 200,617
Interest 7,626 7,626 57,118 49,492
Miscellaneous revenues 24,000 24,000 14,432 (9,568)
Total revenues 390,540 390,540 631,305 240,765
Expenditures
Current
Park and recreation - - 15,883 15,883
Capital outlay
Park and recreation 535,000 535,000 647,590 112,590
Total expenditures 535,000 535,000 663,473 128,473
Net change in fund balances (144,460)$ (144,460)$ (32,168) 112,292$
Fund Balance
Beginning of year 1,405,831
End of year 1,373,663$
117
Budgeted Amounts
Variance with
Final Budget
7.1
City of Crystal
Statement of Revenues, Expenditures, and
Changes in Fund Balances -
Budget and Actual
Police Equipment Revolving - Capital Projects
Year Ended December 31, 2020
Original Final
Actual
Amounts
Revenues
Property taxes 154,938$ 154,938$ 154,938$ -$
Intergovernmental - - 2,339 2,339
Interest 28,894 28,894 110,668 81,774
Miscellaneous revenues 15,000 15,000 - (15,000)
Total revenues 198,832 198,832 267,945 69,113
Expenditures
Current
Public safety - - 2,734 2,734
Capital outlay 235,700 235,700 440,800 205,100
Total expenditures 235,700 235,700 443,534 207,834
Excess of revenues
under expenditures (36,868) (36,868) (175,589) (138,721)
Other Financing Sources
Proceeds from sale of capital asset - - 27,030 27,030
Net change in fund balances (36,868)$ (36,868)$ (148,559) (111,691)$
Fund Balance
Beginning of year 2,915,448
End of year 2,766,889$
118
Budgeted Amounts
Variance with
Final Budget
7.1
Self Insurance Fleet
Information
Technology
City
Buildings Totals
Assets
Current assets
Cash and investments
(including cash equivilants) 604,584$ 2,542,989$ 538,420$ 4,735,240$ 8,421,233$
Accounts Receivable 131,447 - - - 131,447
Total Current Assets 736,031 2,542,989 538,420 4,735,240 8,552,680
Noncurrent assets
Capital assets
Software - 9,428 156,230 - 165,658
Buildings - 120,000 - 18,610,476 18,730,476
Improvements other than buildings - 170,274 112,157 60,319 342,750
Machinery and equipment - 4,557,527 442,726 64,780 5,065,033
Office equipment and furnishings - - 608,395 - 608,395
Vehicles - 3,088,102 - - 3,088,102
Construction In Progress - - - 637,264 637,264
Total capital assets - 7,945,331 1,319,508 19,372,839 28,637,678
Less accumulated depreciation - (3,985,062) (1,009,176) (8,276,577) (13,270,815)
Net capital assets - 3,960,269 310,332 11,096,262 15,366,863
Liabilities
Accounts payable 20,714 234 17,002 62,849 100,799
Due to other governments - - 1,122 - 1,122
Total current liabilities 20,714 234 18,124 62,849 101,921
Net Position
Net investment in capital assets - 3,960,269 310,332 11,096,262 15,366,863
Unrestricted 715,317 2,542,755 520,296 4,672,391 8,450,759
Total net position 715,317 6,503,024 830,628 15,768,653 23,817,622
119
City of Crystal
Combining Statement of Net Position - Internal Service Funds
December 31, 2020
7.1
Self Insurance Fleet
Information
Technology City Buildings Totals
Operating revenues
Charges for Services -$ 85,680$ 604,332$ 1,072,295$ 1,762,307$
Miscellaneous 184,420 - - 11,454 195,874
Total operating revenues 184,420 85,680 604,332 1,083,749 1,958,181
Operating expenses
Other services 473 3,435 497,502 203,424 704,834
Supplies - 258 - 16,995 17,253
Depreciation - 622,886 104,266 555,857 1,283,009
Equipment - 3,540 132,655 60,656 196,851
Total operating expenses 473 630,119 734,423 836,932 2,201,947
Operating income (loss)183,947 (544,439) (130,091) 246,817 (243,766)
Nonoperating revenues (expenses)
Investment income 23,406 88,158 19,885 155,733 287,182
Gain on sale of capital assets - 89,293 - 2,544 91,837
Operating grants and contributions - - - 556,756 556,756
Total nonoperating revenue (expenses) 23,406 177,451 19,885 715,033 935,775
Change in net assets 207,353 (366,988) (110,206) 961,850 692,009
Net position - beginning, as previously stated 507,964 - - - 507,964
Change in accounting principle (See Note 16)- 6,870,012 940,834 14,806,803 22,617,649
Net position - beginning, as restated 507,964 6,870,012 940,834 14,806,803 23,125,613
Net position - ending 715,317$ 6,503,024$ 830,628$ 15,768,653$ 23,817,622$
The Notes to the Financial Statements are an integral part of this statement.120
For the Year Ended December 31, 2020
City of Crystal
Combining Statement of Revenues, Expenses, and Changes
in Net Position - Internal Service Funds
7.1
Self Insurance Fleet
Information
Technology City Buildings Totals
Cash Flows - Operating Activities
Interfund services provided and used -$ 85,680$ 604,332$ 1,072,295$ 1,762,307$
Payments to suppliers (273,287) (7,156) (671,401) (286,534) (1,238,378)
Miscellaneous revenue 95,008 - - 11,454 106,462
Net cash flows -
operating activities (178,279) 78,524 (67,069) 797,215 630,391
Cash Flows - Capital and Related
Financing Activities
Proceeds from disposal of capital assets - 89,293 - 2,544 91,837
Grants and contributions - - - 556,756 556,756
Acquisition of capital assets - (563,243) (38,603) (1,000,729) (1,602,575)
Net cash flows -
capital and related
financing activities - (473,950) (38,603) (441,429) (953,982)
Cash Flows - Investing Activities
Interest and dividends received 23,406 88,158 19,885 155,733 287,182
Net change in cash and cash equivalents (154,873) (307,268) (85,787) 511,519 (36,409)
Cash and cash equivalents, January 1 759,457 2,850,257 624,207 4,223,721 8,457,642
Cash and cash equivalents, December 31 604,584$ 2,542,989$ 538,420$ 4,735,240$ 8,421,233$
Reconciliation of Operating
Income (Loss) to Net Cash
Flows - Operating Activities
Operating income (loss)183,947$ (544,439)$ (130,091)$ 246,817$ (243,766)$
Adjustments to reconcile operating
income (loss) to net cash flows -
operating activities
Depreciation expense - 622,886 104,266 555,857 1,283,009
Accounts receivable (89,412) - - - (89,412)
Prepaid items - - 1,295 - 1,295
Accounts payable (272,814) 77 5,078 (5,459) (273,118)
Due to other governmental units - - (47,617) - (47,617)
Total adjustments (362,226) 622,963 63,022 550,398 874,157
Net cash flows -
operating activities (178,279)$ 78,524$ (67,069)$ 797,215$ 630,391$
See notes to financial statements.121
City of Crystal
Combining Statement of Cash Flows - Internal Service Funds
Year Ended December 31, 2020
7.1
122
7.1
123
STATISTICAL SECTION
7.1
124
7.1
125
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
7.1
2011 2012 2013 2014
Governmental Activities
Net investment in capital assets 25,896,999$ 26,574,766$ 28,944,085$ 34,052,606$
Restricted 13,618,934 14,772,670 17,707,336 16,360,362
Unrestricted 43,259,125 43,950,199 43,687,744 39,694,502
Total governmental activities net position 82,775,058$ 85,297,635$ 90,339,165$ 90,107,470$
Business-Type Activities
Net investment in capital assets 12,763,559$ 13,921,133$ 15,655,823$ 15,448,191$
Unrestricted 11,319,800 10,416,828 10,114,825 9,397,654
Total business-type activities net position 24,083,359$ 24,337,961$ 25,770,648$ 24,845,845$
Primary Government
Net investment in capital assets 38,660,558$ 40,495,899$ 44,599,908$ 49,500,797$
Restricted 13,618,934 14,772,670 17,707,336 16,360,362
Unrestricted 54,578,925 54,367,027 53,802,569 49,092,156
Total primary government net position 106,858,417$ 109,635,596$ 116,109,813$ 114,953,315$
126
City of Crystal
Net Position By Component
(Accrual Basis of Accounting)
Last Ten Fiscal Years
(unaudited)
7.1
Table 1
2015 2016 2017 2018 2019 2020
39,903,269$ 40,421,924$ 40,534,551$ 41,195,367$ 46,233,147$ 48,365,123$
18,102,105 18,580,900 20,099,040 18,671,275 17,072,361 14,067,681
25,901,804 25,370,751 24,388,020 23,516,447 22,294,201 23,420,637
83,907,178$ 84,373,575$ 85,021,611$ 83,383,089$ 85,599,709$ 85,853,441$
19,057,632$ 19,889,415$ 22,283,455$ 21,693,069$ 19,815,262$ 21,760,477$
7,484,722 8,575,762 9,572,606 10,836,119 11,901,367 12,074,284
26,542,354$ 28,465,177$ 31,856,061$ 32,529,188$ 31,716,629$ 33,834,761$
58,960,901$ 60,311,339$ 62,818,006$ 62,888,436$ 66,048,409$ 70,125,600$
18,102,105 18,580,900 20,099,040 18,671,275 17,072,361 14,067,681
33,386,526 33,946,513 33,960,626 34,352,566 34,195,568 35,494,921
110,449,532$ 112,838,752$ 116,877,672$ 115,912,277$ 117,316,338$ 119,688,202$
127
7.1
2011 2012 2013 2014
Expenses
Governmental activities
General government 2,084,038$ 1,992,060$ 2,091,395$ 2,767,171$
Public safety 6,247,082 5,605,172 5,900,593 6,085,801
Public works 3,997,978 4,345,225 2,655,529 5,034,894
Parks and recreation 2,475,881 2,110,078 2,548,785 2,622,407
Community development 2,168,725 2,180,213 1,570,132 1,358,486
Interest on long-term debt 503,301 498,884 586,388 529,448
Total governmental activities expenses 17,477,005 16,731,632 15,352,822 18,398,207
Business-type activities
Water 2,930,591$ 3,094,744$ 3,092,654$ 3,928,301$
Sanitary sewer 1,928,975 1,874,699 1,927,664 1,931,725
Storm drainage 600,371 782,897 760,372 662,419
Street lights 186,991 173,308 309,396 169,664
Recycling 331,918 329,106 329,131 324,105
Total business-type activities expenses 5,978,846 6,254,754 6,419,217 7,016,214
Total primary government expenses 23,455,851$ 22,986,386$ 21,772,039$ 25,414,421$
Program Revenues
Governmental activities
Charges for services
General government 278,336$ 240,501$ 256,133$ 354,802$
Public safety 357,536 389,769 429,740 438,328
Public works 0 - 9 303
Parks and recreation 437,259 463,259 500,561 465,769
Community development 668,666 665,503 902,000 1,739,829
Operating grants and contributions 1,140,876 1,164,000 667,622 595,463
Capital grants and contributions 5,750,178 6,008,708 6,877,723 2,613,480
Total governmental activities program revenues 8,632,851 8,931,740 9,633,788 6,207,974
Business-type activities
Charges for services
Water 2,549,324 2,790,363 2,637,830 2,601,186
Sanitary sewer 1,913,165 1,919,725 1,939,539 2,020,522
Storm drainage 653,009 676,265 717,005 760,884
Street lights 162,722 162,119 169,015 181,720
Recycling 334,654 335,214 334,162 334,101
Operating grants and contributions 375,631 336,103 414,534 388,648
Capital grants and contributions 938,060 1,695 1,319,522 11,612
Total business-type activities program revenues 6,926,565 6,221,484 7,531,607 6,298,673
Total primary government program revenues 15,559,416$ 15,153,224$ 17,165,395$ 12,506,647$
128
City of Crystal
Changes in Net Position
(Accrual Basis of Accounting)
Last Ten Fiscal Years
(unaudited)
7.1
Table 2
2015 2016 2017 2018 2019 2020
2,646,651$ 3,226,278$ 2,964,731$ 3,435,708$ 4,523,764$ $2,622,345
6,438,462 7,685,700 7,546,777 7,250,306 7,585,509 8,533,972
5,132,260 6,511,486 4,224,253 4,285,522 4,479,566 5,675,261
2,816,220 2,759,211 3,128,275 3,299,792 3,093,691 3,126,917
1,287,427 1,174,426 1,616,752 1,159,700 1,398,666 1,552,016
555,121 563,308 541,919 518,975 462,218 340,097
18,876,141 21,920,409 20,022,707 19,950,003 21,543,414 21,850,608
4,131,931$ 3,047,910$ 2,970,228$ 3,105,611$ 3,094,824$ 3,362,825$
1,995,561 2,169,072 2,144,581 2,486,143 2,164,837 2,317,049
883,284 903,884 809,169 759,180 1,539,162 725,016
151,305 155,056 174,479 152,301 151,732 194,991
324,393 324,496 324,853 335,310 334,947 344,747
7,486,474 6,600,418 6,423,310 6,838,545 7,285,502 6,944,628
26,362,615$ 28,520,827$ 26,446,017$ 26,788,548$ 28,828,916$ 28,795,236$
228,357$ 320,899$ 279,603$ 243,710$ 177,914$ 181,700$
412,016 411,592 380,498 346,501 318,706 204,252
0- - - - -
483,741 515,056 513,457 541,486 552,388 154,555
761,469 767,755 796,152 1,255,396 1,169,663 651,925
634,881 728,449 659,450 699,638 761,960 887,111
5,533,872 7,393,250 7,473,350 2,337,789 2,146,495 1,763,000
8,054,336 10,137,001 10,102,510 5,424,520 5,127,126 3,842,543
2,962,818 3,076,263 3,138,317 3,265,849 3,707,733 4,442,177
2,079,431 2,193,599 2,300,866 2,578,065 2,446,851 2,679,871
809,067 867,598 1,058,549 1,174,131 1,226,403 1,271,999
186,125 191,261 195,122 195,324 194,950 193,029
334,493 334,926 340,250 340,410 342,336 348,287
1,669,332 1,859,532 680,740 547,760 2,560,212 240,825
- - - - - 105,750
8,041,266 8,523,179 7,713,844 8,101,539 10,478,485 9,281,938
16,095,602$ 18,660,180$ 17,816,354$ 13,526,059$ 15,605,611$ 13,124,481$
129
7.1
2011 2012 2013 2014
Net (Expense) Revenue
Governmental activities (7,799,892)$ (5,719,034)$ (12,190,233)$ (10,821,805)$
Business-type activities (33,270) 1,112,390 (717,541) 554,792
Total primary government net expense (7,833,162)$ (4,606,644)$ (12,907,774)$ (10,267,013)$
General Revenues and Other Changes
in Net Position
Governmental activities
Property taxes 9,318,013$ 9,710,807$ 9,561,519$ 9,621,212$
Grants and contributions not restricted
to specific programs 1,618,291 1,478,220 1,472,223 1,664,043
Unrestricted investment earnings 1,036,201 540,883 96,678 350,648
Gain on disposition of capital assets 38,413 45,139 47,080 48,900
Transfers 140,203 (177,580) (252,756) 273,735
Total governmental activities 12,151,121 11,597,469 10,924,744 11,958,538
Business-type activities
Unrestricted investment earnings 240,213 108,888 16,241 66,473
Gain on disposition of capital assets 22,000 1,404 51,300 0
Transfers (140,203) 177,580 252,756 (273,735)
Total business-type activities 122,010 287,872 320,297 (207,262)
Total primary government 12,273,131$ 11,885,341$ 11,245,041$ 11,751,276$
Change in Net Position
Governmental activities 4,351,229$ 5,878,435$ (1,265,489)$ 1,136,733$
Business-type activities 88,740 1,400,262 (397,244) 347,530
Total primary government 4,439,969$ 7,278,697$ (1,662,733)$ 1,484,263$
130
City of Crystal
Changes in Net Position
(Accrual Basis of Accounting)
Last Ten Fiscal Years
(unaudited)
7.1
(Continued)
Table 2
2015 2016 2017 2018 2019 2020
(11,783,408)$ (9,920,197)$ (14,525,483)$ (16,416,288)$ (16,416,288)$ (18,008,065)$
1,922,761 1,290,534 1,262,994 3,192,983 3,192,983 2,337,310
(9,860,647)$ (8,629,663)$ (13,262,489)$ (13,223,305)$ (13,223,305)$ (15,670,755)$
9,670,252$ 9,955,391$ 10,469,019$ 11,193,252$ 11,619,642 12,699,857
1,701,220 1,712,591 1,753,898 1,850,588 2,038,452 3,751,256
303,263 445,296 302,344 542,106 969,103 1,217,350
27,706 82,795 91,114 231,971 146,270 119,077
(1,577,880) 53,732 (2,048,142) 502,049 4,154,441 474,257
10,124,561 12,249,805 10,568,233 14,319,966 18,927,908 18,261,797
53,517 47,353 42,244 98,002 148,899 255,079
12,500 6,441 9,964 - - -
1,577,880 (53,732) 2,048,142 (502,049) (4,154,441) (474,257)
1,643,897 62 2,100,350 (404,047) (4,005,542) (219,178)
11,768,458$ 12,249,867$ 12,668,583$ 13,915,919$ 14,922,366$ 18,042,619$
(1,658,847)$ 2,329,608$ (3,957,250)$ (2,096,322)$ 2,511,620$ 253,732$
3,566,658 1,290,596 3,363,344 2,788,936 (812,559) 2,118,132
1,907,811$ 3,620,204$ (593,906)$ 692,614$ 1,699,061$ 2,371,864$
131
7.1
2011 2012 2013 2014
General Fund
Nonspendable
Inventory -$ -$ -$ -$
Prepaid items - - - -
Committed
Compensated absences 869,801 882,942 840,514 801,697
Unassigned 6,645,169 6,514,525 6,862,599 6,594,097
Total general fund 7,514,970$ 7,397,467$ 7,703,113$ 7,395,794$
All Other Governmental Funds
Nonspendable
Prepaid items -$ -$ 78,455$ -$
Restricted
Housing and redevelopment assistance 2,468,311 1,595,856 1,593,243 1,655,414
Murl revolving fund 29,775 32,852 35,651 39,519
Debt service 3,831,273 4,405,942 5,440,681 5,528,971
10% lawful gambling contribution 6,323 3,795 1,945 445
DWI-related enforcement, training and education 38,188 41,723 59,357 55,399
Committed
Housing and redevelopment assistance 3,541,003 3,754,395 3,914,649 3,974,329
Capital outlay - city wide 8,607,284 8,848,629 8,647,926 8,632,632
Capital outlay - replace and
renovation of city bldgs.9,645,755 10,308,963 10,286,268 6,964,198
Capital outlay - street reconstruction 4,028,317 2,463,377 2,261,153 2,347,934
Capital outlay - police equipment 3,184,679 3,191,297 3,138,748 3,122,050
Capital outlay - cable TV equipment - - - -
Capital outlay - fire equipment 629,063 636,661 637,970 643,352
Capital outlay - street maintenance 1,908,638 1,872,925 1,854,710 1,251,683
Capital outlay - fleet - - - -
Capital outlay - information technology - - - -
Capital outlay - park improvement - - - -
Assigned
Police department purposes 7,138 32,058 18,531 14,873
Park and recreation department purposes 33,275 25,805 26,718 24,686
Other purposes 12,275 12,371 11,855 8,060
Unassigned - - - -
Total all other governmental funds 37,971,297$ 37,226,649$ 38,007,860$ 34,263,545$
Note: The City implemented GASB Statement No. 54 in 2011.
132
City of Crystal
Fund Balances of Governmental Funds
(Modified Accrual Basis of Accounting)
Last Ten Fiscal Years
(unaudited)
7.1
Table 3
2015 2016 2017 2018 2019 2020
27,488$ 15,519$ 19,169$ 23,941$ 71,541$ 9,012$
- - - - - 17,386
782,627 817,760 753,962 774,914 801,503 926,030
6,382,810 6,220,496 6,119,325 6,181,591 6,123,392 7,405,222
7,192,925$ 7,053,775$ 6,892,456$ 6,980,446$ 6,996,436$ 8,357,650$
8,450$ -$ -$ -$ -$ -$
1,703,927 1,783,870 1,768,695 1,327,159 1,180,909 1,038,382
- - - - - -
6,437,512 5,750,342 5,312,296 6,079,365 6,080,972 4,506,534
- - - - - -
40,626 32,375 27,824 58,991 86,870 73,496
4,247,836 4,215,316 3,846,024 3,931,334 2,443,836 2,438,443
8,498,360 8,357,889 8,211,949 399,581 - -
- 105,509 644,615 3,338,128 4,155,413 -
2,074,645 2,132,454 2,718,992 5,672,092 6,778,918 6,803,180
3,126,443 3,108,331 2,870,691 2,812,125 2,915,448 2,766,889
35,487 72,531 111,450 152,917 195,363 238,385
648,635 585,905 212,683 1,932,904 - -
1,420,778 1,590,262 1,696,974 - - -
- - - 2,790,279 2,850,100 -
- - - 466,596 564,839 -
- - - - 1,405,831 1,373,663
22,453 40,631 40,631 40,631 71,427 74,614
23,684 20,729 20,729 20,729 - -
9,042 7,755 12,564 12,564 - -
(626,968) - - - - -
27,670,910$ 27,803,899$ 27,496,117$ 29,035,395$ 28,729,926$ 19,313,586$
133
7.1
2011 2012 2013 2014
Revenues
Property taxes 9,323,325$ 9,714,591$ 9,641,513$ 9,621,688$
Special assessments 2,718,038 3,540,032 3,467,243 2,873,099
Licenses, permits and inspections 674,693 670,162 843,741 924,967
Intergovernmental 3,944,380 2,508,451 3,046,762 2,930,382
Charges for sales and/or services 759,262 826,023 899,525 1,718,581
Administrative services provided to other funds 294,594 278,835 291,368 -
Fines and forfeitures 353,125 316,496 397,759 405,546
Interest 801,534 669,524 473,660 331,758
Net increase (decrease) in fair value of investments 206,953 (142,882) (379,426)9,442
Miscellaneous 379,636 450,274 502,878 111,496
Total revenues 19,455,540 18,831,506 19,185,023 18,926,959
Expenditures
General government 1,898,990 2,030,717 2,158,164 2,198,872
Public safety 5,992,955 5,429,833 5,679,203 5,692,868
Public works 1,450,552 1,315,019 1,311,719 2,246,292
Parks and recreation 1,955,070 1,978,397 2,029,179 2,081,162
Community development 1,382,770 1,408,056 1,464,562 1,252,952
Capital outlay 4,528,799 7,052,365 7,327,877 7,209,039
Debt service -
Principal 1,810,083 1,500,682 1,358,811 2,275,042
Interest and other fees 529,299 538,947 564,181 554,063
Total expenditures 19,548,518 21,254,016 21,893,696 23,510,290
Excess (Deficiency) of Revenues
Over (Under) Expenditures (92,978) (2,422,510) (2,708,673) (4,583,331)
Other Financing Sources (Uses)
Issuance of bonds 1,705,000 2,635,000 3,630,000 -
Issuance of refunding bonds - - - -
Issuance of notes payable - - - -
Refunded bonds redeemed - - - -
Premium on bonds issued - 70,531 58,626 -
Proceeds from sale of property and equipment 41,314 56,169 57,310 82,547
Discount on bonds issued (17,391) - - -
Transfers in 1,646,572 2,865,486 895,350 2,347,933
Transfers out (1,506,369) (2,791,827) (845,756) (1,898,783)
Total other financing sources (uses)1,869,126 2,835,359 3,795,530 531,697
Net Change in Fund Balances 1,776,148$ 412,849$ 1,086,857$ (4,051,634)$
Debt service as a percentage of noncapital expenditures 16%14%13%17%
134
City of Crystal
Changes in Fund Balances of Governmental Funds
(Modified Accrual Basis of Accounting)
Last Ten Fiscal Years
(unaudited)
7.1
Table 4
2015 2016 2017 2018 2019 2020
9,664,690$ 9,966,978$ 10,569,176$ 11,231,206$ 11,600,365$ 12,660,825$
3,328,989 3,950,081 4,468,266 3,452,454 2,746,810 2,460,519
808,695 773,479 785,451 740,192 835,712 676,382
3,175,821 3,062,273 3,133,642 3,641,377 3,964,052 4,903,347
932,081 913,329 859,087 935,558 886,368 332,551
- - - - - -
355,566 322,009 359,917 251,732 296,200 196,239
291,400 245,865 259,657 511,542 949,195 930,168
4,825 59,015 - - - -
409,295 1,046,909 354,302 595,766 406,221 107,560
18,971,362 20,339,938 20,789,498 21,359,827 21,684,923 22,267,591
2,289,245 2,517,924 2,639,028 2,580,042 2,479,514 2,246,838
5,841,029 6,143,480 6,589,235 7,028,892 7,412,980 8,324,408
1,327,418 2,077,476 1,455,074 1,391,736 1,411,680 1,549,456
2,229,890 2,240,202 2,379,532 2,546,771 2,792,663 2,913,882
1,197,652 1,108,920 1,279,318 1,548,967 1,112,371 1,303,613
14,022,519 7,124,563 9,829,622 3,255,645 4,651,350 3,139,828
1,379,264 2,481,027 1,968,341 1,587,269 1,915,357 3,350,275
536,202 591,516 551,467 548,573 508,618 425,562
28,823,219 24,285,108 26,691,617 20,487,895 22,284,533 23,253,862
(9,851,857) (3,945,170) (5,902,119) 871,932 (599,610) (986,271)
2,550,000 3,330,000 4,665,000 - - -
- - - - - -
- - - - - -
- - - - - -
92,777 99,664 273,843 - - -
33,224 122,359 91,114 253,287 146,270 27,240
- - - - - -
931,436 673,132 1,944,997 10,580,478 2,015,785 474,257
(551,084) (286,146) (1,541,936) (10,078,429) (1,556,924)-
3,056,353 3,939,009 5,433,018 755,336 605,131 501,497
(6,795,504)$ (6,161)$ (469,101)$ 1,627,268$ 5,521$ (484,774)$
13%18%15%12%14%18%
135
7.1
Table 5TotalReal PropertyTotalDirect EstimatedFiscalCommercial PersonalTaxableTaxActualYearResidential Apartments Industrial PropertyMarket Value Rate Market Value2011 1,214,915,800$ 101,790,000$ 162,932,900$ 11,554,800$ 1,491,193,500$ 48.764 1,496,063,900$ 99.67 %2012 1,019,240,647 100,691,000 161,022,000 11,783,600 1,292,737,24752.929 1,457,765,100 88.862013 864,841,494 100,076,440 159,257,200 12,586,700 1,136,761,83457.630 1,311,691,400 86.662014 864,287,852 101,813,000 156,849,300 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 1,919,021,800 102.512020 1,618,265,550 227,997,580 225,005,300 16,559,700 2,087,828,13046.785 2,122,999,500 98.34Source: Hennepin CountyCity of CrystalTaxable and Estimated Market Values of Taxable PropertyLast Ten Fiscal Years(unaudited)Total TaxableMarket Valueas a Percentof EstimatedActualMarket Value1367.1
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 Rate44.529 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 0.266 129.35746.785 1.070 0.000 47.855 26.447 41.084 8.219 123.605 0.000 0.250 123.855Note 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 County137FiscalCity Direct Tax RatesCity of Crystal2020201920182017201620152014201320122011Year7.1
Table 7Tax TaxTaxpayer Type of Property Capacity * Rank Capacity * RankCrystal Shopping Center Assoc. Shopping Center 553,290$ 1 2.66 % 389,250$ 1 2.01 %Crystal Village Apartments, LLC Apartments 294,238 2 1.41 218,739 3 1.13Cedarwood Investors LLC Apartments 239,225 3 1.15 N/ACrystal Gallery Developers Shopping Center 219,050 4 1.05 132,250 6 0.68Smith-Sturm Investment Co. Apartments 218,875 5 1.05 130,888 7 0.68Crystal Medical Building, LLC Office/clinic 191,250 6 0.92 N/AMinnesota Senior Living LLC-0005 Apartments 186,438 7 0.89 N/ATarget Corporation Department Store 159,250 8 0.76 188,250 4 0.97SuperValu, Inc. Grocery Store 155,330 9 0.75 161,250 5 0.83Crystal Leased HSG Assoc. Housing 154,865 10 0.74 N/ALanel Financial Group Apartments362,301 2 1.87Winpark One Two, LLC Industrial126,250 8 0.65Bass Lake Road Retail Assoc, LLP Office/Warehouse 109,770 9 0.57Industries Equities Group, LLC Apartments99,250 10 0.512,371,811$ 11.38 % 1,918,198$ 9.90 %Total City of Crystal Tax Capacity 20,835,941$ 19,379,600$ * Tax Capacity is computed by applying class rate percentages, specific to each type of property classification, against Taxable Market Value. Class rate percentages vary depending upon the type of property. The formulas and class rates for converting Taxable Market Value into Tax Capacity represent a basic element of the Minnesota property tax system and are subject to annual revisions by the State.Source: Hennepin County138Capacity2020 2011City of CrystalPrincipal Property Taxpayers Current Year and Nine Years Ago(unaudited)Percentageof Total TaxCapacityPercentageof Total Tax7.1
Table 8Total DelinquentCurrent Percentage Delinquent Total Collections Outstanding Taxes asFiscal Tax Tax of LevyTaxTax as a % ofDelinquent a % ofYearLevyCollections CollectedCollections Collections Tax LevyTaxes Tax Levy20118,900,044$ 8,780,526$ 98.66119,518$ 8,900,044$ 100.00 %-$ 0.00 %20129,258,402 9,139,252 98.71119,150 9,258,402 100.00- 0.0020139,159,895 9,090,927 99.2568,968 9,159,895 100.00- 0.0020149,217,153 9,144,399 99.2172,754 9,217,153 100.00- 0.0020159,288,837 9,217,089 99.2365,983 9,283,072 99.915,765 0.0920169,954,054 9,871,608 99.1779,990 9,951,598 99.962,456 0.04201710,606,338 10,538,868 99.3659,692 10,598,560 99.887,778 0.12201811,172,069 11,093,852 99.3063,214 11,157,066 99.8015,003 0.20201911,343,132 11,272,127 99.3747,044 11,319,171 99.5023,961 0.50202012,367,416 12,257,756 99.11- 12,278,726 100.0088,690 0.00Source: City of Crystal Finance Department recordsCity of CrystalProperty Tax Levies and CollectionsLast Ten Fiscal Years(unaudited)1397.1
2011 2012 2013 2014
Taxable market value - amounts 1,292,737$ 1,136,761$ 1,135,611$ 1,293,694$
expressed in thousands
Debt limit (3% of taxable market value)38,782,000$ 34,103,000$ 34,068,000$ 38,811,000$
Less debt applicable to debt limit
Total bonded debt 12,282,995 13,518,886 15,926,532 13,740,062
Deductions -
Tax increment bonds - - - -
Special assessment bonds 9,880,000 11,770,000 14,191,612 12,559,803
9,880,000 11,770,000 14,191,612 12,559,803
Total debt applicable to debt limit 2,402,995 1,748,886 1,734,920 1,180,259
Legal debt margin 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 6.2%5.1%5.1%3.0%
Source: City of Crystal Finance Department records
140
City of Crystal
Legal Debt Margin Information
Last Ten Fiscal Years
(unaudited)
7.1
Table 9
2015 2016 2017 2018 2019 2020
1,339,237$ 1,482,067$ 1,637,892$ 1,637,892$ 1,967,279$ 2,087,828$
40,177,000$ 44,462,000$ 49,137,000$ 49,137,000$ 59,018,000$ 62,635,000$
15,099,795 15,900,940 19,068,514 17,700,339 15,970,984 12,882,262
- - - - - -
14,083,544 15,050,000 18,600,000 17,260,000 15,560,000 12,470,000
14,083,544 15,050,000 18,600,000 17,260,000 15,560,000 12,470,000
1,016,251 850,940 468,514 440,339 410,984 412,262
39,160,749$ 43,611,060$ 48,668,486$ 48,696,661$ 58,607,016$ 62,222,738$
2.5% 1.9% 1.0% 0.9% 0.7% 0.7%
141
7.1
City of CrystalLast Ten Fiscal Years(unaudited)Table 10G.O. G.O.TaxSpecialG.O.TotalG.O.IncrementAssessmentNotesPrimaryPerBonds Bonds Bonds Payable GovernmentCapita2,402,995$ -$ 9,880,000$ 46,100$ 12,329,095$ 0.83 % 0.97 % 556$ 1,741,221 - 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 0.87 649- - 12,852,362 - 12,852,362 0.62 0.72 553Sources: 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 years142Percentageof TaxableMarketValuePersonalIncome2011FiscalYearRatios of Outstanding Debt by TypeGovernmentalActivities202020192018201720162015201420132012Percentageof 7.1
Table 11
Less
Amount
Restricted
G.O.for Debt Per
Bonds Service Total Capita
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
- 298,069 (298,069) 0.04 -13.04
- - - 0.00 0.00
- - - 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
143
2019
2020
Percentage
of Taxable
Market
Value of
Property
Ratios of General Bonded Debt Outstanding
City of Crystal
Last Ten Fiscal Years
(unaudited)
Fiscal
Year
2011
2012
2013
2014
2015
2016
2017
2018
7.1
City of Crystal
Direct and Overlapping Governmental Activities Debt
As of December 31, 2020
(unaudited)
Table 12
Net General
Obligation Amount
Bonded Debt Applicable To
Jurisdiction Outstanding Government
Direct -
City of Crystal 12,852,362$ 100.00 % 12,852,362$
Overlapping -
Robbinsdale ISD #281 172,139,921 19.39 33,274,647
Hennepin County 998,790,298 1.07 10,487,298
Hennepin Suburban Park District 42,954,642 1.51 648,615
Hennepin Regional RR Authority 93,859,422 1.07 985,524
Metropolitan Council / Transit 103,225,628 0.55 547,096
1,410,969,911 45,943,180
Total 1,423,822,273$ 58,795,542$
* 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
144
Percentage
Government *
Applicable To
7.1
Table 13
Per Capita Total City District-Wide
Personal Personal School
Population Income Income Enrollment
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 76,552 1,882,490,232 12,553 3.4
23,262 76,552 1,780,752,624 12,397 5.5
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.
145
2019
2020
Unemployment
RateYear
2011
2012
2013
2014
2015
2016
2017
2018
City of Crystal
Demographic and Economic Statistics
Last Ten Fiscal Years
(unaudited)
Fiscal
7.1
Table 14
Number of Number of
Employer Employees Rank Employees Rank
Volunteers of America -
Crystal Care Center 200 1 1.67 % 218 1 5.65 %
Target 185 2 1.55 182 2 4.72
Cub Foods 156 3 1.31 173 3 4.48
City of Crystal 101 4 0.84 101 4 2.62
Kilmer Electric Co., Inc. 96 5 0.80
Buffalo Wild Wings 65 6 0.54 60 9 1.55
Almsted's Crystal Super Value 60 7 0.50 70 7 1.81
McDonald's 44 8 0.37
Minnesota Grinding 40 9 0.33
Perkins 37 10 0.31 46 10 1.19
RFG Distributing 100 5 2.59
Kilmer Electric Co., Inc. 70 6 1.81
Metropolitan Transportation Network Inc. 65 8 1.68
984 8.22 % 1,085 28.10 %
Estimated total employment 11,953 3,859
Sources: Principal employers are a result of telephone surveys of employers by Baker Tilly US, LLP., in conjunction
with city bond sales from 2017.
Estimated Total Employment is per the Minnesota Department of Employment and Economic
Development web site.
146
2020 2011
City of Crystal
Prinicpal Employers
Current Year and Nine Years Ago
(unaudited)
Percentage
of Total
City
Employment
Percentage
of Total
City
Employment
7.1
Table 15Function 2011 2012 2013 2014 2015 2016 2017 2018 2019 2019General Government 11 11 11 11 11 11 9 9 9 11Public Safety Police Officers 30 30 28 27 30 30 33 33 34 34Civilians8665445568Public Works Engineering3333333333Maintenance788888881111Parks and Recreation Park maintenance6666666677Recreation5555565548Community Development7667767777Utilities Water/Sanitary Sewer/Storm Drainage9899910101010986 83 82 81 83 84 86 86 91 98Source: City of Crystal Finance Department records147City of CrystalFull-Time City Government Employees By Function Last Ten Fiscal Years(unaudited)7.1
2011 2012 2013 2014 2015 2016
General Government
Administration
Employee recruitments 16 19 19 22 26 17
Licenses issued 1,057 1,159 1,262 1,333 1,294 1,323
Public Safety
Police
Calls for service 32,464 31,878 31,624 34,362 31,077 30,860
Citations issued 6,199 6,133 6,622 6,230 5,798 5,771
Criminal cases investigated 1,261 1,771 1,123 1,172 1,208 1,372
Total arrests 1,184 1,226 925 767 859 926
Animal control incidents 501 471 469 447 457 509
Dog licenses issued 315 287 219 258 298 278
Fire (West Metro Fire-Rescue District)
Calls for service 1,641 1,349 1,448 1,663 1,514 1,573
Inspections, plan reviews and
consultations 899 734 747 808 824 746
Public Works
Miles of streets sealcoated 12 6 5 * * *
Miles of streets reconstructed 466055
Phase of 16-phase street project Phase 11 Phase 12 Phase 13 Phase 14 Phase 15
Parks and Recreation
Recreation program participants 9,301 9,132 10,600 13,847 12,149 11,082
No. of teams in team sports 195 221 212 212 216 249
No. of participants in special events 4,647 4,142 3,897 5,425 4,542 5,382
No. of rental groups 208 185 229 218 201 **
No. of facility rentals ** ** ** ** ** 711
Community Center permits 600 657 684 680 671 862
Pool attendance 33,220 31,127 30,009 28,042 28,092 26,769
Community Development
Permit inspections 2,331 2,350 2,868 2,779 2,771 2,430
Code enforcement incidents 1,378 1,319 1,332 1,482 1,539 1,514
Rental housing - no. of licensed units 2,457 2,575 2,788 2,859 2,548 2,915
Point of sale inspections/re-inspections 424 385 468 442 404 13
Planning Commission applications 18 8 16 12 6 12
Utilities
Water system
Average residential consumption
(million gallons / day) 1.33 Mg/d 1.46 Mg/d 1.34 Mg/d 1.26 Mg/d 1.22 Mg/d 1.20 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
indicator will be presented on a prospective basis.
*** The point of sale program was phased out in 2015-2016.
Source: Various city departments
148
City of Crystal
Operating Indicators By Function
Last Ten Fiscal Years
(unaudited)
Function
7.1
Table 16
2017 2018 2019 2020
20 15 23 9
954 840 850 807
27,296 32,863 30,216 26,568
4,710 4,465 2,588 2,940
1,362 1,525 217 217
826 906 756 711
391 303 245 295
223 195 2 0
1,922 1,856 840 781
880 691 428 675
0000
5000
Phase 16
11,623 13,615 19,277 2,465
228 246 232 162
4,690 6,292 5,039 400
** ** ** **
1,022 970 755 296
957 776 884 677
27,098 30,350 26,631 0
2,835 2,704 3,262 3,034
1,405 1,317 1,583 1,294
2,831 2,715 2,702 2,736
13 *** *** ***
11 13 8 6
1.60 Mg/d 1.40 Mg/d 1.40 Mg/d 1.21 Mg/d
y that
149
7.1
2011 2012 2013 2014 2015 2016
Public Safety
Police
Number of stations 111111
Public Works
Street maintenance
Miles of city street 92 91 91 91 91 90
Parks and Recreation
Recreation
Number of park acres 244 253 253 253 253 263
Number of parks 28 28 28 28 28 27
Number of parks with playground apparatus 20 20 20 20 20 19
Number of tennis courts 13 12 12 12 12 7
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 15 15 10 7
Number of full-size soccer fields 222222
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 7,888 7,803 7,812 7,817 7,830 7,841
Number of fire hydrants 819 820 821 821 823 823
Sewer system
Miles of sanitary sewer 87 87 87 87 87 87
Number of service connections 7,911 7,821 7,827 7,837 7,845 7,855
Number of lift stations 777777
Storm drainage system
Miles of storm sewer 64 66 74 76 76 77
Number of lift stations 111111
Note: No capital asset indicators are available for the general government and community development functions.
Source: Various city departments
150
Function
City of Crystal
Capital Asset Statistics By Function
Last Ten Fiscal Years
(unaudited)
7.1
Table 17
2017 2018 2019 2020
1111
90 90 88 91
263 261 261 261
27 26 26 26
19 19 19 19
7776
3334
2224
2222
3333
7555
7774
2211
1111
1111
1111
93 93 93 93
7,841 7,849 7,856 8,010
797 797 859 798
87 87 87 87
7,855 7,863 7,863 8,129
7776
65 65 65 66
1111
151
7.1
City of Crystal
Hennepin County, Minnesota
Communications Letter
December 31, 2020
7.1
City of Crystal
Table of Contents
Report on Matters Identified as a Result of
the Audit of the Financial Statements 1
Significant Deficiency 3
Required Communication 4
Financial Analysis 8
Emerging Issue 19
7.1
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, 2020, in accordance with auditing standards generally
accepted in the United States of America and the standards applicable to financial audits contained in
Government Auditing Standards, issued by the Comptroller General of the United States, 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 over financial reporting.
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.
We did not identify any deficiencies in internal control that we consider to be material weaknesses.
A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less
severe than a material weakness, yet important enough to merit attention by those charged with
governance. The significant deficiency identified is stated within this letter.
7.1
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, 2020. 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 7, 2021, 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 7, 2021
7.1
3
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, 2020. Professional standards require that we advise you of the following matters related
to our audit.
7.1
City of Crystal
Required Communication
4
We have audited the financial statements of the governmental activities, business-type activities, each
major fund, and the aggregate remaining fund information of the City as of and for the year ended
December 31, 2020. 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.
Our Responsibility in Relation to Government Auditing Standards
As communicated in our engagement letter, part of obtaining reasonable assurance about whether the
financial statements are free of material misstatement, we performed tests of the City's compliance with
certain provisions of laws, regulations, contracts, and grant agreements, noncompliance with which
could have a direct and material effect on the determination of financial statement amounts. However,
the objective of our tests was not to provide an opinion on compliance with such provisions.
7.1
City of Crystal
Required Communication
5
Our Responsibility in Relation to Title 2 U.S. Code of Federal Regulations Part 200, Uniform
Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards
(Uniform Guidance)
As communicated in our engagement letter, in accordance with the Uniform Guidance, we examined, on
a test basis, evidence about the City's compliance with the types of compliance requirements described
in the U.S. Office of Management and Budget (OMB) Compliance Supplement applicable to each of its
major federal programs for the purpose of expressing an opinion on the City's compliance with those
requirements. While our audit provided a reasonable basis for our opinion, it did not provide a legal
determination on the City's compliance with those requirements.
In planning and performing our audit of compliance, we considered the City's internal control over
compliance with the types of requirements that could have a direct and material effect on each major
federal program to determine the auditing procedures that are appropriate in the circumstances for the
purpose of expressing an opinion on compliance for each major federal program and to test and report
on internal control over compliance in accordance with the Uniform Guidance, but not for the purpose
of expressing an opinion on the effectiveness of internal control over compliance.
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.
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 2020. 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 estimates affecting the financial statements are:
Depreciation – The City is currently depreciating its capital assets over their estimated useful
lives, as determined by management, using the straight-line method.
7.1
City of Crystal
Required Communication
6
Qualitative Aspects of Significant Accounting Practices (Continued)
Significant Accounting Estimates (Continued)
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 and in relation to the
applicable opinion units.
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.
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 taken as a whole
and each applicable opinion unit. Management has corrected all such misstatements.
In addition, professional standards require us to communicate to you all material, corrected
misstatements that were brought to the attention of management as a result of our audit procedures.
None of the misstatements detected as a result of audit procedures and corrected by management were
material, either individually or in the aggregate, to the financial statements taken as a whole.
Disagreements with Management
For purposes of this letter, professional standards define a disagreement with management as a matter,
whether or not resolved to our satisfaction, concerning a financial accounting, reporting, or auditing
matter, which could be significant to the City's financial statements or the auditor's report. No such
disagreements arose during the course of our audit.
7.1
City of Crystal
Required Communication
7
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 and
regulatory 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.
7.1
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, 2020, the General Fund balance was $8,357,650, an increase of 19.5%, or $1,361,214,
from the 2019 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.
$6,220,496 $6,119,325 $6,181,591 $6,123,392 $7,405,222
$817,760 $753,962 $774,914 $801,503
$926,030
$15,519 $19,169 $23,941 $71,541
$26,398
$-
$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
2016 2017 2018 2019 2020
General Fund Balance
Unassigned Committed for Compensated Absences Nonspendable
7.1
City of Crystal
Financial Analysis
9
General Fund (Continued)
The City adopted a budget for 2021 which called for an increase in expenditures and other financing
uses of 12.7%, or $1,872,025. Fund balance at December 31, 2020, 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.
47%
44%43%41%
44%
53%
49%49%47%
50%
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
50%
55%
60%
65%
70%
2016 2017 2018 2019 2020
Fund Balance as a Percentage of Budget
Unassigned Fund Balance Total Fund Balance
7.1
City of Crystal
Financial Analysis
10
General Fund (Continued)
For the 2020 operating year, the City Council approved a balanced budget anticipating no change in
fund balance. Revenues were over budget by 5.7% and expenditures were 2.9% under budget. This
resulted in a positive variance of $1,361,214 from budgeted expectations.
General Fund Budget Actual Variance Percentage
Revenue
Taxes and assessments 11,606,176$ 11,455,248$ (150,928)$ -1.3%
Intergovernmental 1,787,339 3,637,704 1,850,365 103.5%
Licenses, permits, fines, and charges for services 2,050,862 1,192,432 (858,430) -41.9%
Other 178,545 224,078 45,533 25.5%
Total revenues 15,622,922 16,509,462 886,540 5.7%
Expenditures
General government 2,239,739 2,244,492 4,753 0.2%
Public safety 8,194,542 8,263,068 68,526 0.8%
Public works 1,617,226 1,549,456 (67,770) -4.2%
Parks and recreation 3,323,950 2,895,125 (428,825) -12.9%
Community development 721,723 670,574 (51,149) -7.1%
Total expenditures 16,097,180 15,622,715 (474,465) -2.9%
Excess of revenues
(under) expenditures (474,258) 886,747 1,361,005 -287.0%
Net other financing sources (uses) 474,258 474,467 209 0.0%
Change in fund balance - 1,361,214 1,361,214 N/A
Beginning fund balance 6,996,436 6,996,436 - 0.0%
Ending fund balance 6,996,436$ 8,357,650$ 1,361,214$ 19.5%
General fund revenues in total came in $886,540, or 5.7%, over budgeted amounts. The largest budget
variance for revenue was in intergovernmental revenue, which was $1,850,365 over the budgeted
amount due to Federal funding received for the Coronavirus Aid, Relief, and Economic Security Act
(CARES) which wasn't budgeted. Licenses, permits, fines, and charges for services combined to be
$858,430 under budget. The variance was primarily due to the effects of COVID-19 on charges for
services, specifically community center rental and pool revenue. Building permit revenue also came in
under budgeted amounts.
Total general fund expenditures were $474,465, or 2.9%, under budget for 2020. Parks and recreation
expenditures were $428,825 under budget in 2020. This budget variance was due in part to the effects of
COVID-19 on recreation programs, particularly the amount of salaries and benefits for operating
programs. All other categories came in close to budgeted expenditures.
7.1
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
$16,509,462 in 2020 increased from $13,735,566 in 2019. The largest increase of $1,729,941 occurred
in the intergovernmental category related to the CARES funding received. Property taxes increased
$1,717,622 due in large part to an increase in the amount of property tax levied for the year. Charges for
services decreased by $475,770 due to the impact of COVID-19 on programming revenue. Licenses and
permits decreased by $159,330 with a decrease in building permit fees and affiliated building activity.
2016 2017 2018 2019 2020
Other $552,865 $466,858 $435,116 $493,544 $454,977
Charges for Services 791,838 758,968 818,999 808,321 332,551
Licenses and Permits 773,479 785,451 740,192 835,712 676,382
Intergovernmental 2,008,525 2,003,243 1,860,929 1,907,763 3,637,704
Property Taxes 8,004,390 8,709,285 9,499,766 9,690,226 11,407,848
$-
$2,000,000
$4,000,000
$6,000,000
$8,000,000
$10,000,000
$12,000,000
$14,000,000
$16,000,000
$18,000,000
General Fund Revenues
7.1
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 2019 and 2020.
General Government
14%
Public Safety
53%
Public Works
10%
Parks and Recreation
19%
Community
Development
4%
2020 General Fund Expenditures
General Government
16%
Public Safety
51%
Public Works
10%
Parks and Recreation
19%
Community
Development
4%
2019 General Fund Expenditures
7.1
City of Crystal
Financial Analysis
13
General Fund Expenditures (Continued)
General Fund expenditures increased $1,414,030, or 10.0%, from the prior year. Public safety
expenditures increased $927,766 due to increases in salaries, benefits, and fire protection service costs
along with added expenditures allocated relating to the implementation of fleet, information technology,
and City building internal service funds. Parks and recreation expenditures increased $226,173, public
works increased $137,776, and community development increased $112,707 in 2020 also due in large
part to the allocations related to the new internal service funds along with increases in wages and
benefits.
2016 2017 2018 2019 2020
Community Development $523,035 $543,950 $565,170 $557,867 $670,574
Parks and Recreation 2,233,897 2,372,112 2,457,539 2,668,952 2,895,125
Public Works 1,276,590 1,285,172 1,391,736 1,411,680 1,549,456
Public Safety 6,069,624 6,504,810 6,971,706 7,335,302 8,263,068
General Government 2,510,387 2,622,202 2,464,910 2,234,884 2,244,492
$-
$2,000,000
$4,000,000
$6,000,000
$8,000,000
$10,000,000
$12,000,000
$14,000,000
$16,000,000
General Fund Expenditures
7.1
City of Crystal
Financial Analysis
14
Water Enterprise Fund
Activity for the City's Water Fund is shown below. Water operating revenues increased $734,444 as a
result of an increase in residential, commercial, and industrial rates in 2020 along with increased
consumption. Operating expenses increased $269,201 compared to 2019 with a noted water charge
increase. The Water Fund ended the year with a net income of $1,085,352, which was an increase of
$465,243 in net income from 2019.
2016 2017 2018 2019 2020
Operating revenue $3,337,980 $3,394,823 $3,518,119 $3,707,733 $4,442,177
Operating expense 3,037,110 2,960,628 3,097,211 3,087,624 3,356,825
Net income with depreciation 1,809,649 717,863 560,131 828,645 1,382,389
Net income without depreciation 2,030,876 944,238 790,222 973,625 1,540,078
$-
$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
$5,000,000
Water Utility
7.1
City of Crystal
Financial Analysis
15
Sanitary Sewer Enterprise Fund
Sewer operating revenues increased $236,522 due in part to increased billing rates. Operating expenses
increased $152,212 due to increased charges associated with sewer disposal in 2020. The Sanitary Sewer
Fund's operating income ended at $366,324 and increased $84,310 from 2019.
2016 2017 2018 2019 2020
Operating revenue $2,196,601 $2,301,863 $2,584,087 $2,446,851 $2,683,373
Operating expense 2,168,280 2,144,581 2,486,143 2,164,837 2,317,049
Net income with depreciation 109,365 180,199 135,797 345,434 489,141
Net income without depreciation 273,405 345,187 322,363 450,495 622,484
$-
$500,000
$1,000,000
$1,500,000
$2,000,000
$2,500,000
$3,000,000
Sanitary Sewer Utility
7.1
City of Crystal
Financial Analysis
16
Storm Drainage and Street Lights Enterprise Funds
2016 2017 2018 2019 2020
Operating revenue $871,233 $1,059,165 $1,335,334 $1,226,403 $1,272,283
Operating expense 903,342 794,169 759,180 1,539,162 725,016
Net income with depreciation (414)399,193 599,616 2,092,174 683,715
Net income without depreciation 356,369 744,178 967,746 2,384,919 1,028,968
$(500,000)
$-
$500,000
$1,000,000
$1,500,000
$2,000,000
$2,500,000
Storm Drainage Utility
2016 2017 2018 2019 2020
Operating revenue $191,382 $195,122 $195,324 $194,950 $193,029
Operating expense 155,056 154,479 152,301 151,732 194,991
Net income with depreciation 47,299 29,178 56,163 65,092 28,206
Net income without depreciation 79,516 61,395 88,380 97,309 60,562
$-
$20,000
$40,000
$60,000
$80,000
$100,000
$120,000
$140,000
$160,000
$180,000
$200,000
Street Lights Utility
7.1
City of Crystal
Financial Analysis
17
Per Capita Revenues and Expenditures
Below is a chart of the per capita trends in selected revenue and expenditure line items. In 2020, the
intergovernmental revenue per capita increased due to the increased CARES funding and finished above
the State average for similarly sized cities. The property taxes per capita for 2020 increased due to an
increase in property tax levy and came in above the State average as well. Both current and total
expenditures per capita increased in 2020 compared to 2019 activity while continuously falling below
the State averages.
2019** 2020***
Intergovernmental revenues per capita 201$ 170$ 211$
Property taxes per capita ****512 486 529
Total revenue per capita 1,105 931 957
Expenditures per capita
(less debt service and capital)735 653 702
Total expenditures per capita 1,205 957 1,000
Population 23,287 23,262
* Statewide data obtained from the office of the State Auditor's 2019 Minnesota City Finances Report
** 2019 per capita data uses 2018 population forecast from Metropolitan Council
*** 2020 per capital data uses 2019 population forecast from the Metropolitan Council
**** Property taxes exclude tax increments
Average-Cities
20,000 and 100,000
Per Capita Trends
Population
City of Crystal
Between
2019 Statewide *
7.1
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 2016 through 2020. 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 46.8%.
$15,250,280
$16,470,361 $18,459,975
$19,967,681
$22,411,718
$9,135,123
$9,798,620
$10,627,889 $11,060,388
$12,084,672
51.8%
49.0%
49.2%47.6%46.8%
-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
2016 2017 2018 2019 2020
Tax Capacity, Certified Levy, and City Tax Rate
Tax Capacity Certified Tax Levy City Tax Rate
* Tax capacity and city tax rate obtained from Hennepin County taxing district information
7.1
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 this issue
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.
7.1
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.
7.1
City of Crystal
Hennepin County, Minnesota
Reports on Compliance with
Government Auditing Standards,
Uniform Guidance, and Legal Compliance
December 31, 2020
7.1
City of Crystal
Table of Contents
Schedule of Expenditures of Federal Awards 1
Notes to Schedule of Expenditures of Federal Awards 2
Report on Internal Control over Financial Reporting and on Compliance
and Other Matters Based on an Audit of Financial Statements Performed
in Accordance with Government Auditing Standards 3
Report on Compliance for each Major Federal Program and on Internal Control over
Compliance Required by the Uniform Guidance 5
Schedule of Findings and Questioned Costs 8
Minnesota Legal Compliance 10
7.1
Federal
CFDA Federal
Number Expenditures
U.S. Department of the Interior
Passed through the State of Minnesota
Outdoor Recreation Acquisition, Development and Planning 15.916 15,000$
U.S. Department of Justice
Passed through the State of Minnesota
Bulletproof Vest Partnership Program 16.607 2,339
Public Safety Partnership and Community Policing Grants 16.710 13,754
Equitable Sharing Program 16.922 10,428
Total U.S. Department of Justice 26,521
U.S. Department of Transportation
Passed through the State of Minnesota
Towards Zero Deaths 20.608 44,557
DWI Enforcement 20.616 13,307
Total U.S. Department of Transportation 57,864
U.S. Department of Treasury
Passed through the State of Minnesota
Coronavirus Relief Fund 21.019 1,754,449
Total Federal Expenditures 1,853,834$
See Notes to Schedule of Expenditures of Federal Awards. 1
Federal Agency/Pass Through Agency/Program Title
City of Crystal
Schedule of Expenditures of Federal Awards
Year Ended December 31, 2020
7.1
2
City of Crystal
Notes to Schedule of Expenditures of Federal Awards
NOTE 1 – BASIS OF PRESENTATION
The accompanying Schedule of Expenditures of Federal Awards includes the federal grant activity of
the City of Crystal, Minnesota and is presented on the accrual basis of accounting. The information in
this schedule is presented in accordance with the requirements of the Uniform Guidance. Therefore,
some amounts presented in this schedule may differ from amounts presented in, or used in, the
preparation of the basic financial statements.
NOTE 2 – PASS-THROUGH GRANT NUMBERS
All pass-through entities listed above use the same CFDA numbers as the federal grantors to identify
these grants and have not assigned any additional identifying numbers.
NOTE 3 – INDIRECT COST RATE
The City did not elect to use the 10 percent de minimis indirect cost rate, as allowed under the Uniform
Guidance.
7.1
3
Report on Internal Control over Financial Reporting
and on Compliance and Other Matters Based on an Audit of
Financial Statements Performed in Accordance with
Government Auditing Standards
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 and the standards applicable to financial audits contained in Government Auditing Standards
issued by the Comptroller General of the United States, the financial statements of the governmental
activities, the business-type activities, the discretely presented component units, each major fund, and
the aggregate remaining fund information of the City of Crystal, Minnesota as of and for the year ended
December 31, 2020, and the related notes to financial statements, which collectively comprise the City's
basic financial statements, and have issued our report thereon dated June 7, 2021.
Internal Control over Financial Reporting
In planning and performing our audit of the financial statements, 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.
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 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 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.
Our consideration of internal control was for the limited purpose described in the first paragraph of this
section 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 were not identified. Given these limitations, during our audit we did not identify any
deficiencies in internal control that we consider to be material weaknesses. We did identify a certain
deficiency in internal control, described in the accompanying Schedule of Findings and Questioned
Costs that we consider to be a significant deficiency as audit finding 2020-001.
7.1
4
Compliance and Other Matters
As part of obtaining reasonable assurance about whether the City's financial statements are free from
material misstatement, we performed tests of its compliance with certain provisions of laws, regulations,
contracts, and grant agreements, noncompliance with which could have a direct and material effect on
the financial statements. However, providing an opinion on compliance with those provisions was not an
objective of our audit, and accordingly, we do not express such an opinion. The results of our tests
disclosed no instances of noncompliance or other matters that are required to be reported under
Government Auditing Standards.
City's Response to Findings
The City's response to the findings identified in our audit are described in the accompanying Schedule of
Findings and Questioned Costs. The City's responses were not subjected to the auditing procedures
applied in the audit of the financial statements and, accordingly, we express no opinion on them.
Purpose of this Report
The purpose of this report is solely to describe the scope of our testing of internal control and
compliance and the result of that testing, and not to provide an opinion on the effectiveness of the City's
internal control or on compliance. This report is an integral part of an audit performed in accordance
with Government Auditing Standards in considering the City's internal control and compliance.
Accordingly, this communication is not suitable for any other purpose.
Minneapolis, Minnesota
June 7, 2021
7.1
5
Report on Compliance for each Major Federal Program
and Report on Internal Control over Compliance in Accordance
With the Uniform Guidance
Independent Auditor's Report
Honorable Mayor and Members
of the City Council
City of Crystal
Crystal, Minnesota
Report on Compliance for Each Major Federal Program
We have audited the City's compliance with the types of compliance requirements described in the OMB
Compliance Supplement that could have a direct and material effect on each of the City's major federal
programs for the year ended December 31, 2020. The City's major federal programs are identified in the
summary of auditor's results section of the accompanying Schedule of Findings and Questioned Costs.
Management's Responsibility
Management is responsible for compliance with federal statutes, regulations, and the terms and
conditions of its federal awards applicable to its federal programs.
Auditor's Responsibility
Our responsibility is to express an opinion on compliance for each of the City's major federal programs
based on our audit of the types of compliance requirements referred to above. We conducted our audit of
compliance in accordance with auditing standards generally accepted in the United States of America;
the standards applicable to financial audits contained in Government Auditing Standards, issued by the
Comptroller General of the United States; and the audit requirements of Title 2 U.S. Code of Federal
Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit
Requirements for Federal Awards (Uniform Guidance). Those standards and the Uniform Guidance
require that we plan and perform the audit to obtain reasonable assurance about whether noncompliance
with the types of compliance requirements referred to above that could have a direct and material effect
on a major federal program occurred. An audit includes examining, on a test basis, evidence about the
City's compliance with those requirements and performing such other procedures as we considered
necessary in the circumstances.
We believe that our audit provides a reasonable basis for our opinion on compliance for each major
federal program. However, our audit does not provide a legal determination of the City's compliance.
Opinion on Each Major Federal Program
In our opinion, the City complied, in all material respects, with the types of compliance requirements
referred to above that could have a direct and material effect on each of its major federal programs for
the year ended December 31, 2020.
7.1
6
Report on Internal Control over Compliance
Management of the City is responsible for establishing and maintaining effective internal control over
compliance with the types of compliance requirements referred to above. In planning and performing
our audit of compliance, we considered the City's internal control over compliance with the types of
requirements that could have a direct and material effect on each major federal program to determine the
auditing procedures that are appropriate in the circumstances for the purpose of expressing an opinion
on compliance for each major federal program and to test and report on internal control over compliance
in accordance with the Uniform Guidance, but not for the purpose of expressing an opinion on the
effectiveness of internal control over compliance. Accordingly, we do not express an opinion on the
effectiveness of the City's internal control over compliance.
A deficiency in internal control over compliance exists when the design or operation of a control over
compliance does not allow management or employees, in the normal course of performing their assigned
functions, to prevent, or detect and correct, noncompliance with a type of compliance requirement of a
federal program on a timely basis. A material weakness in internal control over compliance is a
deficiency, or combination of deficiencies, in internal control over compliance, such that there is a
reasonable possibility that material noncompliance with a type of compliance requirement of a federal
program will not be prevented, or detected and corrected, on a timely basis. A significant deficiency in
internal control over compliance is a deficiency, or a combination of deficiencies, in internal control
over compliance with a type of compliance requirement of a federal program that is less severe than a
material weakness in internal control over compliance, yet important enough to merit attention by those
charged with governance.
Our consideration of internal control over compliance was for the limited purpose described in the first
paragraph of this section and was not designed to identify all deficiencies in internal control over
compliance that might be material weaknesses or significant deficiencies. We did not identify any
deficiencies in internal control over compliance that we consider to be material weaknesses. However,
material weaknesses may exist that have not been identified.
The purpose of this report on internal control over compliance is solely to describe the scope of our
testing of internal control over compliance and the results of that testing based on the requirements of
the Uniform Guidance. Accordingly, this report is not suitable for any other purpose.
Report on Schedule of Expenditures of Federal Rewards Required by the Uniform Guidance
We have audited the financial statements of the governmental activities, the business-type activities, the
discretely presented component units, each major fund, and the aggregate remaining fund information of
the City of Crystal, Minnesota, as of and for the year ended December 31, 2020, and the related notes to
financial statements which collectively comprise the City's basic financial statements. We issued our
report thereon dated June 7, 2021, which contained unmodified opinions on those financial statements.
Our audit was conducted for the purpose of forming opinions on the financial statements that
collectively comprise the basic financial statements.
7.1
7
Report on Schedule of Expenditures of Federal Rewards Required by the Uniform Guidance
(Continued)
The accompanying Schedule of Expenditures of Federal Awards is presented for purposes of additional
analysis as required by Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform
Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform
Guidance) and is also not a required part of the financial statements. Such information is the
responsibility of management and was derived from and relates directly to the underlying accounting
and other records used to prepare the basic financial statements. The information has been subjected to
the auditing procedures applied in the audit of the basic financial statements and certain additional
procedures, including comparing and reconciling such information directly to the underlying accounting
and other records used to prepare the basic financial statements or to the basic financial statements
themselves, and other additional procedures in accordance with auditing standards generally accepted in
the United States of America. In our opinion, the Schedule of Expenditures of Federal Awards is fairly
stated, in all material respects, in relation to the basic financial statements as a whole.
Minneapolis, Minnesota
June 7, 2021
7.1
8
City of Crystal
Schedule of Findings and Questioned Costs
SECTION I – SUMMARY OF AUDITOR'S RESULTS
Financial Statements
Type of auditor's report issued:
We issued an unmodified opinion on the
fair presentation of the financial
statements of the governmental
activities, business-type activities, each
major fund, and the aggregate remaining
fund information in accordance with
accounting principles generally accepted
in the United States of America
(GAAP).
Internal control over financial reporting:
Material weakness(es) identified? No
Significant deficiency(ies) identified? Yes, Audit Finding 2020-001
Noncompliance material to financial statements noted? No
Federal Awards
Type of auditor's report issued on compliance for major
programs: Unmodified
Internal control over major programs:
Material weakness(es) identified? No
Significant deficiency(ies) identified? No
Any audit findings disclosed that are required to
be reported in accordance with 2 CFR 200.516(a)? No
Identification of Major Programs
CFDA No.: 21.019
Name of Federal Program or Cluster: Coronavirus Relief Fund
Dollar threshold used to distinguish
between type A and type B programs: $750,000
Auditee qualified as low risk auditee? No
7.1
9
City of Crystal
Schedule of Findings and Questioned Costs
SECTION II – FINANCIAL STATEMENT FINDING
Audit Finding 2020-001
Criteria:
Internal control that supports the City's ability to initiate record, process and report financial data
consistent with the assertions of management in the financial statements requires adequate segregation
of accounting duties.
Condition:
The City had a lack of segregation of accounting duties due to a limited number of office employees.
Context:
This finding impacts the internal control for all significant accounting functions.
Effect or Potential Effect:
The lack of adequate segregation of accounting duties could adversely affect the City's ability to initiate,
record, process, and report financial data consistent with the assertions of management in the financial
statements.
Cause:
There are a limited number of office employees.
Recommendation:
Continue to review the accounting system, including changes that may occur. Implement segregation
whenever practical.
Views of Responsible Officials and Planned Corrective Action:
The City is aware of the limited segregation of duties as a result of our limited number of staffing. The
City is committed to an environment with strong internal controls and is constantly evaluating the
system and implementation of compensating controls when available.
SECTION III – FEDERAL AWARD FINDINGS AND QUESTIONED COSTS
There were no Federal award findings.
There were no questioned costs.
SECTION IV – PRIOR YEAR FINDINGS AND QUESTIONED COSTS
None
7.1
10
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, and the standards applicable to financial audits contained in Government Auditing Standards,
issued by the Comptroller General of the United States, the financial statements of the governmental
activities, the business-type activities, the discretely presented component units, each major fund, and
the aggregate remaining fund information of the City of Crystal, Minnesota as of and for the year ended
December 31, 2020, and the related notes to financial statements, which collectively comprise the City's
basic financial statements, and have issued our report thereon dated June 7, 2021.
In connection with our audit, nothing came to our attention that caused us to believe that the City 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 Statute § 6.65, insofar as they relate to accounting matters. 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, insofar as they relate to accounting matters.
The purpose of this report is solely to describe the scope of our testing of compliance and the results of
that testing, and not to provide an opinion on compliance. Accordingly, this communication is not
suitable for any other purpose.
Minneapolis, Minnesota
June 7, 2021
7.1
DATE:June 8, 2021
TO:Anne Norris, City Manager
City of Crystal City Council
FROM:Jean McGann, Contracted Finance Director
RE:Expenditures over $25,000
Payee Amount
HealthPartners, Inc.June health insurance premiums $119,362.00
MN PERA Employee & city required contributions for 05/28/21 pay date $62,106.94
Center for Energy & Environment Home improvement loan program costs $31,786.49
Golden Valley JWC May water costs $126,524.99
$339,780.42
Description
7.2
___________________________________________________________________
FROM: City Clerk Chrissy Serres
___________________________________________________________________
DATE: June 9, 2021
TO: Mayor and City Council
City Manager Anne Norris
RE: Consideration of a multiple animal license at 6617 Dudley Ave. N.
Background
Ken Waytashek has applied for a multiple animal kennel license for four dogs and one cat at
6617 Dudley Ave. N. Animal Control Officer Tom Mahan conducted an inspection at the
property and his findings are included in the attached report.
Notice of the proposed license and the June 15 City Council meeting was mailed to neighboring
properties on June 4, 2021.
Requested Council action
Staff recommends approval of the of the multiple animal kennel license for Ken Waytashek at
6617 Dudley Ave. N.
COUNCIL STAFF REPORT
Regular Agenda: June 15, 2021 Council Meeting
Consideration of a multiple animal license at 6617 Dudley Ave. N.
7.3
7.3
3556 MAJOR AVENUE NORTH – VARIANCE APPLICATION
PAGE 1 OF 4
______________________________________________________________
FROM: Dan Olson, City Planner
_________________________________________________________________
TO: Anne Norris, City Manager (for June 15 Meeting)
DATE: June 10, 2021
RE: Consider adoption of a resolution approving a variance request from
Great Buy Homes for a new single-family home at 3556 Major Avenue
North
A.BACKGROUND
Glenn Hammer, on behalf of Great Buy Homes, is proposing to purchase the vacant lot
at 3556 Major Avenue North from the city’s Economic Development Authority (EDA)
and construct a new single-family home at that location. Before purchasing the
property, which is zoned Low Density Residential (R-1), the applicant is requesting
setback variances for the new home.
Notice of the June 14 public hearing was published in the Sun Post on June 3 and
mailed to property owners within 500 feet (see attachment A), and posted to the Lee
Park neighborhood on Nextdoor. A sign was also posted on the property and a hearing
notice was sent to the City of Robbinsdale since the property is adjacent to the
Robbinsdale/Crystal boundary line.
The Planning Commission is scheduled to hold a public hearing on the variance request
on June 14th. At the June 15th City Council meeting staff will provide an update to the
Council on the Commission’s variance recommendation and whether public input was
given.
Attachments:
A.Site location map showing public hearing notification area
B.Existing zoning map
C.Project narrative submitted by applicant
D.Property survey and floor plans (5 sheets)
E.Resolution
COUNCIL STAFF REPORT
Variance for 3556 Major Avenue North
7.4
3556 MAJOR AVENUE NORTH – VARIANCE APPLICATION
PAGE 2 OF 4
B. VARIANCES
The vacant lot is 35.5’ wide and 128’ deep, making it 4,566 sq. ft. in size. There has never been
a home on the property. Due to the small size of the lot the applicant is requesting the following
variances for a proposed new two-story home:
• Reduce the required front setback (along Major Ave N) from 30’ to 28’
• Reduce the required north setback (along 36 th Ave N) from 10’ to 8’
The applicant would finish the home as follows:
➢ Main floor. Approximately 924 square feet on the main level with an open living-dining-
kitchen area, one bedroom/den and a bathroom.
➢ Second floor. Approximately 924 sq. ft on the second floor with three bedrooms and
two bathrooms.
➢ Lower level. Approximately 730 unfinished sq. ft. on the lower level, with an option to
have it finished with an additional bedroom, a bathroom, and family room.
➢ Garage: A two-car detached garage would be accessed from the alley.
C. VARIANCE APPROVAL CRITERIA
The following are the relevant approval criteria for this variance as outlined in city code section
510.33, followed by staff response:
a) Variances shall only be permitted when they are in harmony with the general
purposes and intent of the official control and when the terms of the variances
are consistent with the comprehensive plan.
Response: The intent of the city’s zoning ordinance is to provide for
regulations to promote orderly development that allows for adequate
access to light, air, and convenient access to property. The approval of a
home that is closer to the front and north property lines will not impede
access to adequate light or air for adjacent properties or for the proposed
home. If the variance is approved, the home will be in conformance with
the Comprehensive Plan’s Low Density Residential future land use
designation.
b) Variances shall only be permitted when the City Council finds that strict
enforcement of specific provisions of this section would create practical
difficulties due to circumstances unique to a particular property under
consideration. Practical difficulties, as used in connection with the granting of a
variance, means that the property owner:
1) proposes to use the property in a reasonable manner not permitted
by an official control; and
2) the plight of the landowner is due to circumstances unique to the
property not created by the landowner; and
7.4
3556 MAJOR AVENUE NORTH – VARIANCE APPLICATION
PAGE 3 OF 4
3) the variance, if granted, will not alter the essential character of the
locality.
Response:
The use of the subject property for a single-family home is a reasonable
use permitted by the city’s zoning regulations.
The parcel was originally platted in 1911 in the Woodland Homes
subdivision. The majority of lots in that subdivision were platted with a 40’
width, but this lot was platted with a width of 35.5’ in order to provide
additional right-of-way for 36th Avenue North. The setback variance is
necessary to ensure that a house can be placed on the lot in a way which
provides the best possible residential use and enjoyment of the property.
The essential character of this area will not change if the variance is
approved:
• With the reduced front setback for this home of 28 feet, it will
match the front setback of 27.8 feet for the home to the south,
3552 Major Ave N.
• The proposed home will be 5.5’ from the south property line,
which exceeds the required side setback for homes in Crystal.
• By way of illustration both 3556 and 3557 Kyle Avenue North,
two blocks east of 3556 Major, were platted with a similar lot
width and a building permit was issued in 1964 and 1959,
respectively, with only a 5’ corner side yard setback
requirement.
c) Economic considerations alone do not constitute practical difficulties.
Response: A new home could be built on the lot without the variance, but
with the variance the new home can be located in a way that fits the
character of the surrounding homes. Therefore economic considerations
alone are not the sole reason for requesting this variance.
C. REQUESTED ACTION
The Planning Commission will make a recommendation to the City Council on June 14th
to either approve or deny the variance application to reduce the required building
setbacks for the home at 3556 Major Avenue North as follows:
• Front: Reduce from 30’ to 28’
• North side: Reduce from 10’ to 8’
The resolution (attachment E) approves the variance based on the staff report’s
findings of fact in Sections B and C, contingent upon the following conditions:
7.4
3556 MAJOR AVENUE NORTH – VARIANCE APPLICATION
PAGE 4 OF 4
1. Compliance. The variance is subject to the applicable requirements of the Crystal
City Code. The Applicant is required to comply with all applicable federal, state, and
local laws, rules, regulations, and ordinances and is required to obtain such other
permits and permissions as may be required.
2. No Waiver. Failure by the City to take action with respect to any violation of any
condition, covenant or term of the variance shall not be deemed to be a waiver of
such condition, covenant, or term or any subsequent violation of the same or any
other condition, covenant, or term.
3. Binding Effect. This variance, and the conditions placed on its approval, are binding
on the Applicant, the Applicant’s successors and assigns, shall run with the
Property, and shall not in any way be affected by the subsequent sale, lease, or
other change from current ownership. The obligations of the Applicant under this
approval shall also be the obligations of the current and any subsequent owners of
the Property.
4. Acceptance of Conditions. Utilization of the Property for any of the uses allowed by
this variance shall automatically be deemed acceptance of, and agreement to, its
terms and conditions without qualification, reservation, or exception.
If the Planning Commission makes a different recommendation, staff will provide an
alternate resolution with that recommendation to the City Council at the June 15, 2021
meeting.
City Council motion to approve the proposed resolution (Attachment E) is requested.
If the variance is approved, the builder is planning to begin construction of the home
this summer and finish construction by the end of 2021.
7.4
Site Location and Public Hearing Notice Mailing Map
3556 Major Ave N
4141 Douglas Dr. N.
Crystal MN 55422
Attachment A
7.4
Zoning Map
3556 Major Ave N
4141 Douglas Dr. N.
Crystal MN 55422
Robbinsdale
Attachment B
7.4
Attachment C 7.4
f:\jobs\9461 - 9480\9479 - woodland homes\cad c3d\survey\9479.001 variance exhibit.dwgSave Date:05/19/21Revisions:S E C. 6S E C. 7Attachment D 7.4
19REVISIONS BY
7.4
297.4
397.4
497.4
597.4
CITY OF CRYSTAL
MINNESOTA
RESOLUTION NO. 2021-________
RESOLUTION APPROVING A VARIANCE FOR 3556 MAJOR AVENUE NORTH
WHEREAS, Great Buy Homes (“Applicant”) submitted an application for approval of a
variance at 3556 Major Avenue North, which is legally described in Exhibit A (“Property”); and
WHEREAS, the variance is to allow a new single-family home that does not meet
building setback requirements as required in the City’s Unified Development Code (UDC),
which is contained in Chapter V of the Crystal City Code. The requested variances are:
•28 feet to the front (Major Ave N) property line rather than the 30 feet required by
the UDC;
•8 feet to the north (36th Ave N) property line rather than the 10 feet required by
the UDC; and
WHEREAS, the Planning Commission held a public hearing regarding the variance
request on June 14, 2021 and voted to forward the application to the City Council with a
recommendation that the requested variance be approved; and
WHEREAS, the City Planner’s report dated June 10, 2021 regarding this matter, which is
attached hereto as Exhibit B, is incorporated herein and made part of this variance approval
except that the conditions set out below are controlling; and
WHEREAS, the City Council finds that the Applicant has sufficiently demonstrated that
practical difficulties exist under the present circumstances to support the issuance of the
requested variance under the applicable rules and regulations of the Crystal City Code.
NOW, THEREFORE, BE IT RESOLVED, that the City Council of the City of Crystal,
based on the record of this matter and the findings and determinations contained herein, hereby
approves the variance to allow construction of a single-family home located up to 28 feet from
the front (Major Ave N) and up to 8 feet from the north (36th Ave N) property lines, at 3556
Major Avenue North, subject to compliance with all of the following conditions of approval:
1.Compliance. The variance is subject to the applicable requirements of the Crystal
City Code. The Applicant is required to comply with all applicable federal, state, and
local laws, rules, regulations, and ordinances and is required to obtain such other
permits and permissions as may be required.
2.No Waiver. Failure by the City to take action with respect to any violation of any
condition, covenant or term of the variance shall not be deemed to be a waiver of such
Attachment E
7.4
condition, covenant, or term or any subsequent violation of the same or any other
condition, covenant, or term.
3. Binding Effect. This variance, and the conditions placed on its approval, are binding
on the Applicant, the Applicant’s successors and assigns, shall run with the Property,
and shall not in any way be affected by the subsequent sale, lease, or other change
from current ownership. The obligations of the Applicant under this approval shall
also be the obligations of the current and any subsequent owners of the Property.
4. Acceptance of Conditions. Utilization of the Property for any of the uses allowed by
this variance shall automatically be deemed acceptance of, and agreement to, its terms
and conditions without qualification, reservation, or exception.
Adopted by the Crystal City Council this 15th day of June, 2021.
____________________________
Jim Adams, Mayor
ATTEST:
___________________________
Chrissy Serres, City Clerk
7.4
EXHIBIT A
Legal Description of the Property
Lot 30, Block 3, Woodland Homes, Hennepin County, Minnesota
7.4
EXHIBIT B
Planner’s Report
(attached hereto)
7.4
3700 WINNETKA AVENUE NORTH – LOT CONSOLIDATION PLAT
PAGE 1 OF 4
___________________________________________________________________________
FROM: Dan Olson, City Planner
___________________________________________________________________________
TO: Anne Norris, City Manager (for June 15 Meeting)
DATE: June 10, 2021
RE: Consider adoption of a resolution approving a lot consolidation at 3700
Winnetka Avenue North
A.BACKGROUND
Jonathan Shaver, on behalf of Adath Jeshurun Congregation, is proposing to
consolidate two lots into one parcel at the Adath Chesed Shel Emes Cemetery located
at 3700 Winnetka Avenue North. The lot consolidation was a condition of approval for a
conditional use permit (CUP) approved by the City Council on May 18, 2021 to construct
a new cemetery pavilion. The property is zoned Low Density Residential (R-1).
The proposed plat is named Adath Chesed Shel Emet Cemetery (the property owner
intentionally named the plat slightly differently from the cemetery). A public hearing is
not required for a lot consolidation.
Attachments:
A.Proposed Adath Chesed Shel Emet Cemetery final plat
B.Resolution
COUNCIL STAFF REPORT
Lot Consolidation Plat
3700 Winnetka Avenue North
7.5
3700 WINNETKA AVENUE NORTH – LOT CONSOLIDATION PLAT
PAGE 2 OF 4
2020 Aerial Photo:
7.5
3700 WINNETKA AVENUE NORTH – LOT CONSOLIDATION PLAT
PAGE 3 OF 4
B. PROPOSED LOT CONSOLIDATION
The table below provides information about the two lots included in the consolidation.
The consolidated lot would continue to be addressed as 3700 Winnetka Avenue North.
Property Address Parcel size Existing plat name
3700 Winnetka Ave N 218,832 sq. ft. (5.02 acres) Unplatted
3700 Winnetka Ave N 638,528 sq. ft.(14.66 acres) Unplatted
Minus Winnetka
Avenue street right-of-
way
26,319 sq. ft (0.6 acres)
Combined lot (to be
addressed as 3700
Winnetka Ave N)
Total area = 831,040 sq. ft.
(19.01 acres)
Final plat features:
1. Name. The proposed plat would be called Adath Chesed Shel Emet Cemetery.
2. Hennepin County review . Because the plat abuts a county roadway (Winnetka
Avenue), county staff reviewed this lot consolidation request and find s it acceptable.
The county has requested that the applicant provide approximately 26,319 square
feet of street right-of-way since the Winnetka Avenue right-of-way adjacent to this
property has never officially been dedicated. T his dedication is now shown on the
plat.
3. Easements. Currently there are no drainage and utility easements on the property,
but new easements are dedicated along the west (Winnetka Avenue) and south
property lines in the proposed plat. Due to the presence of gravesites near the north
and east sides, new easements are not dedicated along those property lines.
4. Park dedication. According to city code section 510.23, Subd. 3 (d), lot
consolidation applications are not subject to park dedication requirements.
Criteria for approval of a lot consolidation:
The following are the approval criteria in city code section 510.23, Subd. 3 for approval of
lot consolidation applications, followed by staff’s findings of these criteria.
(a) The consolidation must be in general complia nce with the comprehensive plan.
Findings: On the 2040 Planned Land Use map the property is guided as
Institutional. The cemetery conforms to that designation.
(b) The consolidation must meet the purpose and intent of this unified development
code (UDC).
7.5
3700 WINNETKA AVENUE NORTH – LOT CONSOLIDATION PLAT
PAGE 4 OF 4
Findings: The purpose of the UDC is to establish regulations that allow for the
development of properties, but which avoid or minimize negative impacts to
the general public or adjacent properties. The property has been a cemetery
since 1924 and will continue to be an asset to the community.
(c) Unless prior or concurrent approval of a variance is granted, any such consolidation
shall result in lots that, to the greatest extent possible, meet the dimensional
requirements for the zoning district in which the property is located, and shall not
further increase the nonconformity of any lot dimension or struct ure.
Findings: The individual lots included in the lot consolidation request meet the
city’s dimensional requirements for the Low Density Residential (R-1) zoning
district. With this proposed plat the consolidated lot will continue to be in
conformance to these requirements. No variances are proposed for this
application.
C. REQUESTED ACTION
City Council approval of the attached resolution is requested.
7.5
ADA TH CHESED SHEL EMET CEMETERY R.T. DOC. NO.-----
KNOW ALL PERSONS BY THESE PRESENTS: That Adath Jeshurun Congregation, a Minnesota Religious Corporation, owner of the following described
property situated in the County of Hennepin, State of Minnesota, to wit:
That part of the Southwest Quarter of the Southwest Quarter, Section 17, To wnship 118, Range 21, described as beginning at the Northwest
corner of said Southwest Quarter of the Southwest Quarter; thence East along the North line of said Southwest Quarter of the Southwest
Quarter to a point 462 feet West from the Northeast comer of said Southwest Quarter of the Southwest Quarter; thence South, parallel with
the East line of said Southwest Quarter of the Southwest Quarter, a distance of 236 feet: thence Westerly to a point on the West line of said
Southwest Quarter of the Southwest Quarter distant 285 feet South from the point of beginning; thence North along said West line to the point
of beginning;
AND
The North One-half of the Southwest Quarter of the Southwest Quarter, Section 17, To wnship 118, Range 21, except that port thereof described
as beginning at the Northwest corner of the Southwest Quarter of the Southwest Quarter of said Section 17; thence East along the North line
of said Southwest Quarter of the Southwest Quarter to a point 462 feet West from the Northeast corner of said Southwest Quarter of the
Southwest Quarter; thence South, parallel with the East line of said Southwest Quarter of the Southwest Quarter, a distance of 236 feet; thence
Westerly to a point on the West line of said Southwest Quarter of the Southwest Quarter distant 285 feet South from the point of beginning;
thence North along said West line to the point of beginning;
Hos caused the same to be surveyed and plotted as ADATH CHESED SHEL EMET CEMETERY and does hereby dedicate to the public for public use the
public way and the drainage and utility easements as created herewith as shown on this plot.
In witness whereof said Adath Jeshurun Congregation, a Minnesota Religious Corporation, has caused these presents to be signed by its proper officer
this ____ day of ------� 20 __ _
Adath Jeshurun Congregation
SI GNED: _____________________ its __________ _
STATE OF
COUNTY OF
This instrument was acknowledged before me this __ day of _____ 4 20 __ , by -----------�
of Adoth Jeshurun Congregation, a Minnesota Religious Corporation, on behalf of the corporation.
Signature
Notary Printed Name
Notary Public,
My Commission Expires
County,
its
I, Arlee J. Carlson, do hereby certify that this plat was prepared by me or under my direct supervision; that I am a duly Licensed Land Surveyor in
the State of Minnesota; that this plot is a correct representation of the boundary survey; that all mathematical data and labels ore correctly
designated on this plat; that all monuments depicted on this plot have been or will be correctly set within one year; that all water boundaries and
wet lands as defined in Minnesota Statutes, Section 505.01, Subd. 3, as of the dote of this certificate ore shown and labeled on this plat; and all
public ways ore shown and labeled on this plot.
Doted this ___ _ day of --------�
Arlee J. Carlson, Licensed Land Surveyor
Minnesota License No. 44900
STATE OF MINNESOTA
COUNTY OF HENNEPIN
20 ___ .
This instrument was acknowledged before me this __ day of
Signature
Notary Printed Nome
Notary Public, Minnesota
My Commission Expires January 31,
20 __ , by Arlee J. Carlson.
CITY COUNCIL
City Council, City of Crystal, Minnesota
This plat of ADATH CHESED SHEL EMET CEMETERY was approved and accepted by the City Council of the City of Crystal, Minnesota at a regular meeting thereof held this
day of 20_� and said plat is in compliance with the provisions of Minnesota Statutes, Section 5D5.03, Subd. 2.
City Council, City of Crystal, Minnesota
----------------�M□�r City Clerk
RESIDENT AND REAL ESTATE SERVICES, Hennepin County, Minnesota
I hereby certify that taxes payable in 20 __ _ and prior years hove been paid for land described on this plot, dated this ___ day of -------
Mork V. Chapin, County Auditor By _________________ Deputy
SURVEY DIVISION, Hennepin County, Minnesota
Pursuant to Minnesota Statutes, Sec. 383B.565 (1969), this plot has been approved this ___ day of-------20 __ .
Chris F. Mavis, County Surve�r By------------------
REGISTRAR OF TITLES, Hennepin County, Minnesota
I hereby certify that the within plat of ADATH CHESED SHEL EMET CEMETERY was filed In this office this
Mortin McCormick, Registrar of Titles By ________________ Deputy
PRELIMINARY
SUBJECT TO REVISION
day of _____ _ 20 ___ at
20 ___ .
o'clock _.M.
SHEET 1 OF 2 SHEETS
Attachment A
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30-726754.v2
CITY OF CRYSTAL
MINNESOTA
RESOLUTION NO. 2021-________
RESOLUTION APPROVING ADATH CHESED
SHEL EMET CEMETERY FINAL PLAT
WHEREAS, Adath Jeshurun Congregation (“Applicant”) submitted an application to the
City of Crystal (“City”) for approval of a plat, which is attached hereto as Exhibit A, for the
property which is legally described in the attached Exhibit B (“Property”); and
WHEREAS, the Applicant owns real property legally described in Exhibit B, all located
in Hennepin County (collectively, the “Applicant’s Parcels”); and
WHEREAS, the plat is named Adath Chesed Shel Emet Cemetery and it consolidates the
Applicants Parcels into one; and
WHEREAS, the City Planner’s report dated June 10, 2021 regarding this matter, which is
attached hereto as Exhibit C, is incorporated herein and made part of this plat approval, except
that the conditions set out below are controlling; and
WHEREAS, the City Council finds that the plat is in conformance with the requirements
of the City’s Unified Development Code, which is contained in Chapter V of the Crystal City
Code.
NOW, THEREFORE, BE IT RESOLVED, that the City Council of the City of Crystal,
based on the record of this matter and the findings and determinations contained herein, hereby
grants preliminary and final approval for the plat of Adath Chesed Shel Emet Cemetery, subject
to compliance with all of the following conditions of approval:
1. Compliance. Development of the plat is subject to the applicable requirements of the
Crystal city code. The Applicant is required to comply with all applicable federal,
state, and local laws, rules, regulations, and ordinances in developing the plat and is
required to obtain such other permits and permissions as may be required.
2.No Waiver. Failure by the City to take action with respect to any violation of any
condition, covenant or term of this plat approval shall not be deemed to be a waiver of
such condition, covenant, or term or any subsequent violation of the same or any other
condition, covenant, or term.
3.Binding Effect. The conditions placed on this preliminary and final plat approval are
binding on the Applicant, its successors and assigns, shall run with the Property, and
shall not in any way be affected by the subsequent sale, lease, or other change from
current ownership. The obligations of the Applicant under this approval shall also be
the obligations of the current and any subsequent owners of the Property.
Attachment B
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30-726754.v2
4.Acceptance of Conditions. Utilization of the Property for any of the uses allowed by
this preliminary and final plat approval shall automatically be deemed acceptance of,
and agreement to, the terms and conditions without qualification, reservation, or
exception.
Adopted by the Crystal City Council this 15th day of June 2021.
____________________________
Jim Adams, Mayor
ATTEST:
___________________________
Chrissy Serres, City Clerk
7.5
30-726754.v2
EXHIBIT A
Final Plat
(attached hereto)
7.5
30-726754.v2
EXHIBIT B
Legal Description of the Property
That part of the Southwest Quarter of the Southwest Quarter, Section 17, Township 118, Range
21, described as beginning at the Northwest corner of said Southwest Quarter of the Southwest
Quarter; thence East along the North line of said Southwest Quarter of the Southwest Quarter to
a point 462 feet West from the Northeast corner of said Southwest Quarter of the Southwest
Quarter; thence South, parallel with the East line of said Southwest Quarter of the Southwest
Quarter, a distance of 236 feet; thence Westerly to a point on the West line of said Southwest
Quarter of the Southwest Quarter distant 285 feet South from the point of beginning; thence
North along said West line to the point of beginning;
AND
The North One-half of the Southwest Quarter of the Southwest Quarter, Section 17, Township
118, Range 21, except that part thereof described as beginning at the Northwest corner of the
Southwest Quarter of the Southwest Quarter of said Section 17; thence East along the North line
of said Southwest Quarter of the Southwest Quarter to a point 462 feet West from the Northeast
corner of said Southwest Quarter of the Southwest Quarter; thence South, parallel with the East
line of said Southwest Quarter of the Southwest Quarter, a distance of 236 feet; thence Westerly
to a point on the West line of said Southwest Quarter of the Southwest Quarter distant 285 feet
South from the point of beginning; thence North along said West line to the point of beginning;
7.5
30-726754.v2
EXHIBIT C
Planner’s Report
(attached hereto)
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4141 Douglas Drive North • Crystal, Minnesota 55422-1696
Tel: (763) 531-1000 • Fax: (763) 531-1188 • www.crystalmn.gov
Memorandum
DATE: June 10, 2021
TO: Mayor and City Council
Anne Norris, City Manager
FROM: John Elholm, Recreation Director
SUBJECT: Trail and Concrete Installation at Valley Place Park and Bass Lake Park
The 2021 capital budget includes funds for improvements at Valley Place Park and Bass Lake
Park. The improvements are included in the long-term capital plan in two areas; general trail
improvements and picnic shelter installation. In addition, the Valley Place Park project includes
funding from the Hennepin Youth Sports program in the amount of $100,000.
The projects proposed as part of this agreement includes:
•Installation of ADA accessible trails, a concrete pad for the picnic shelter and concrete
pads under individual picnic tables and benches at Bass Lake Park (base quote).
•Installation of ADA accessible trails, curb ramps at the parking lot and a concrete patio
adjacent to the play area at Valley Place Park (base quote).
•Installation of a sidewalk and steps to provide a direct route from the parking lot to the
patio and play area at Valley Place Park (alternate item).
Quotes were received from three vendors to complete these projects. Quotes, including the
alternate, are as follows:
•Odesa II, LTD $ 88,210.00
•Pember Companies, Inc.$ 98,482.15
•Peterson Companies, Inc.$ 137,216.50
Staff recommends approval of the attached resolution to enter into an agreement with Odesa II,
LTD for trail and concrete installation, including the alternate, in Bass Lake Park and Valley Place
Park per the project specifications.
7.7
CITY OF CRYSTAL
RESOLUTION 2021 -
RESOLUTION IN SUPPORT OF TRAIL AND CONCRETE
INSTALLATION IN VALLEY PLACE AND BASS LAKE PARKS
WHEREAS, the City of Crystal owns and operates Valley Place Park and Bass Lake Park, and
WHEREAS, the 2021 capital budget includes funds for trail and concrete installation, and
WHEREAS, additional funds have been authorized through a grant from the Hennepin Youth Sports
program in the amount of $100,000 for completion of the overall Valley Place Park project, and
WHEREAS, quotes have been received from three contractors to complete trail and concrete installation
according to specifications, and
WHEREAS, the lowest quote, including base and alternate items, was received from Odesa II, LTD in the
amount of $88,210.00;
THEREFORE, BE IT RESOLVED:
A. That the Crystal City Council wishes to enter into an agreement with Odesa II, LTD in the
amount of $88,210.00; for trail and concrete installation in Bass Lake Park and Valley Place Park.
B. That the Crystal City Council hereby authorizes the City Manager to sign the agreements with
Odesa II, LTD for this project.
Adopted by the Crystal City Council this 15th day of June, 2021.
________________________
Jim Adams, Mayor
ATTEST:
___________________________
Christina Serres, City Clerk
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Valley Place Park and Bass Lake Park Trails – Odessa II
TRAIL AND CONCRETE INSTALLATION AGREEMENT
THIS TRAIL AND CONCRETE INSTALLATION AGREEMENT (“Agreement”) is made and
entered into this 15th day of June, 2021, by and between the City of Crystal, a Minnesota municipal
corporation, located at 4141 Douglas Drive North, Crystal, Minnesota 55422 (“City”), and Odesa
II, LLC, a Minnesota company, located at 9003 Mayhew Lake Road NE, Sauk Rapids, MN
55379 (“Contractor”). The City and the Contractor may hereinafter be referred to individually as
a “party” or collectively as the “parties.”
RECITALS
A.The City desires to have a trail and other miscellaneous concrete work installed at Valley
Place Park, a City Park located at 6822 32nd Avenue North; and at Bass Lake Park, a City
Park located at 5601 Xenia Avenue North (“Parks”).
B.The Contractor provided the City a written quote to construct trails and other related items at
the Parks in accordance with the specifications established by the City (“Project”).
C.The Contractor desires to undertake and complete the Project for the City in accordance with
the terms and conditions of this Agreement.
AGREEMENT
In consideration of the mutual promises and agreements contained herein, and intending to
be legally bound, the City and the Contractor hereby agree as follows:
1.Scope of Work.
a. The Contractor, for and in consideration of the payment or payments herein specified
and to be made by the City, covenants and agrees to furnish all materials, all necessary
tools, and equipment, and to do and perform all the work and labor necessary to
complete the Project, all in strict conformity with the Contractor’s quote and scope of
work contained in the attached Exhibit A (all work, materials and equipment set forth
in this paragraph and contained in Exhibit A are hereinafter collectively referred to as
the “Specifications”). Said Specifications are hereby fully incorporated as part of this
Agreement.
b.The Contractor agrees that all work and labor shall be done in the best and most
diligent manner and that all materials and labor shall be in entire and strict conformity
in every respect with the said Specifications and shall be subject to the inspection and
approval by the proper authorities of the City for the supervision of the work, and in
case any of said material or labor shall be rejected by the City as defective or
unsuitable, then the materials shall be removed and replaced with other approved
materials and the labor shall be done anew to the satisfaction and approval of the City
at the cost and expense of the Contractor.
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Valley Place Park and Bass Lake Park Trails – Odessa II
c. The Contractor agrees to make good, replace, and renew at the Contractor’s own cost
and expense any loss or damage to the work and Project occurring during the
installation or prior to the final acceptance thereof by the City, by reason of fire,
tornado, theft, or any cause whatsoever, and to be wholly responsible for the
installation, completion and delivery of the Project in its entirety for the final
acceptance by the City; and any payment or payments made to the Contractor
hereunder, shall not be construed as operating to relieve the Contractor from
responsibility for the construction and delivery of the Project as provided and agreed
through this Agreement.
2.Schedule; Liquidated Damages.
a. The Contractor agrees to commence the work on the Project at the earliest practicable
date and to prosecute the same diligently and without delay and to have the work
entirely completed in every respect to the satisfaction and approval of the City on or
before October 1, 2021. In case of the failure on the part of the Contractor, for any
reason except with the written consent of the the City, to complete the Project on or
before said date, the City shall have the right to deduct from any money due or which
may become due to the Contractor, the amount of two hundred dollars ($200.00) per
day for each and every day elapsing between the time stipulated for the completion
and the actual date of completion, in accordance with the terms thereof; or if no
moneys shall be due the Contractor, the City shall have the right to recover such sum;
such deduction to be made or such sum to be recovered not as a penalty, but as
liquidated damages. The Contractor agrees that it will be difficult for the City to
determine the amount of all damages that the City would incur as a result of delay and
that the liquidated damages set forth in this paragraph are reasonable.
b.The Contractor agrees to notify the City in writing of any and all causes of delay of
work, or any part thereof, within 24 hours after such cause of delay shall arise, and in
case of the failure of the Contractor to perform this Agreement and complete the work
at the time hereinafter specified, the City may immediately, or at any time thereafter,
proceed to complete the work at the cost and expense of the Contractor. Upon receipt
of written notice from the Contractor of the existence of causes over which the
Contractor has no control and which must delay the completion of the work, including
without limitation, fire, flood, epidemic, strikes, wars, acts of God, acts of public
authorities, or delays or defaults caused by public carriers, the City shall reasonably
extend the date previously specified for the completion of the work and in such case
the Contractor shall only become liable for such liquidated damages for failure to
perform during any delay after the time is so extended.
3. Compensation.
a.This is a lump sum agreement. The City agrees to pay the Contractor the lump sum
identified in the Contractor’s quote, which is attached hereto as Exhibit A. If the
Contractor properly performs the work, the City shall, from month to month before
completion of the work and pursuant to invoices from the Contractor, pay the
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Valley Place Park and Bass Lake Park Trails – Odessa II
Contractor up to 95 percent of the amount already earned under the Agreement. When
the work is 95 percent or more completed, upon the sole determination of City staff,
such portions of the retained price shall be released only as the City determines it need
not be retained to protect the interest of the City in the satisfactory completion of the
Agreement. The balance shall be retained by the City until the final performance and
completion of this Agreement by the Contractor to the satisfaction, approval, and
acceptance of the City including provision by the Contractor of Minn. Dept. of
Revenue Form IC-134 or other authorized proof of the Contractor’s compliance with
applicable state laws.
b. No claim for extra work done or materials furnished by the Contractor will be made
by the Contractor or allowed by the City, nor shall the Contractor do any work or
furnish any materials not covered by the Specifications, unless such work or materials
is ordered in writing by the City. Any such work or materials which may be done or
furnished by the Contractor without such written order first being given, shall be at
the Contractor's own risk and expense.
4. Non-Discrimination. The Contractor agrees that in the hiring of common or skilled labor for
the performance of any work under this Agreement or any subcontract hereunder, no
contractor, material supplier, or vendor, shall, by reason of race, color, sex, creed, national
origin, disability, age, sexual orientation, status with regard to public assistance, or religion,
discriminate against any person or persons who are qualified and available to perform the
work to which such employment relates; that neither the Contractor nor any subcontractor,
material supplier, or vendor, shall in any manner discriminate against, or intimidate, or prevent
the employment of any such person or persons from the performance of work under this
Agreement or any subcontract hereunder on account of race, color, sex, creed, national origin,
disability, age, sexual orientation, status with regard to public assistance, or religion.
5. Insurance. The Contractor shall maintain commercial general liability coverage for all work
covered under the Agreement in at least the amounts of $1,500,000.00 per occurrence for
combined bodily injury and property damage, and $2,000,000 in the general aggregate, and
commercial automobile liability insurance in at least the amount of $1,000,000 per occurrence
for combined bodily injury and property damage covering owned, non-owned, and hired
automobiles. The Contractor shall provide the City with a current certificate of insurance
listing the City as an additional insured with respect to the aforementioned policies. To meet
the requirements herein, the Contractor may use a combination of excess and umbrella
coverage. The Contractor also agrees to keep in force during the entire term of this Agreement
statutory workers’ compensation insurance.
6. Indemnification. The Contractor hereby agrees to protect, defend and hold the City and its
officers, elected and appointed officials, employees, administrators, commissioners, agents,
and representatives harmless from and indemnified against any and all loss, costs, fines,
charges, damage and expenses, including, without limitation, reasonable attorneys’ fees,
consultants’ and expert witness fees, and travel associated therewith, due to claims or
demands of any kind whatsoever (including those based on strict liability) only to the extent
caused by and arising out of (i) the activities contemplated by this Agreement, (ii) including,
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Valley Place Park and Bass Lake Park Trails – Odessa II
without limitation, any claims for any lien imposed by law for services, labor or materials, or
(iii) by reason of the execution of this Agreement or the performance of this Agreement. The
Contractor, and the Contractor’s successors or assigns, agree to protect, defend and save the
City, and its officers, agents, and employees, harmless from all such claims, demands,
damages, and causes of action and the costs, disbursements, and expenses of defending the
same, including but not limited to, attorneys’ fees, consulting engineering services, and other
technical, administrative or professional assistance. The Contractor further agrees to
indemnify the City and hold it harmless from and against any and all claims, suits, and actions
against, and all loss, damage, costs, or expense to the City occasioned by or arising from any
infringement or claim of infringement of any letters patent, or patent rights upon or covering
any patented article or articles furnished or installed by the Contractor under this Agreement
for the City, of from or by reason of the use by the City of any patented article or articles
furnished or installed by the Contractor for the City under this Agreement. The indemnity
contained in this paragraph shall be continuing and shall survive the performance or
cancellation of this Agreement. Nothing in this Agreement shall be construed as a limitation
of or waiver by the City of any immunities, defenses, or other limitations on liability to which
the City is entitled by law, including but not limited to the maximum monetary limits on
liability established by Minnesota Statutes, Chapter 466, or otherwise.
7. Independent Contractor. The Contractor and its employees are not employees of the City.
Nothing in the Agreement is intended or should be construed in any manner as creating or
establishing the relationship as employer/employee, co-partners, or a joint venture between
the City and the Contractor. It is agreed that the Contractor and its employees will act as an
independent contractor and acquire no rights to tenure, workers’ compensation benefits,
unemployment compensation benefits, medical and hospital benefits, sick and vacation leave,
severance pay, pension benefits or other rights or benefits offered to employees of the City.
The manner in which the Project is to be performed shall be controlled by the Contractor;
however, the nature of the services and the results to be achieved shall be specified by the
City.
8. Termination. The City may terminate this Agreement upon 30 days’ written notice, except
that if the Contractor is in default and fails to cure the default within ten days following written
notice by the City, the City has the right to terminate this Agreement immediately upon written
notice of termination. The Contractor will be paid for services properly rendered and
equipment property installed prior to the effective date of termination. The following
provisions of this Agreement shall survive expiration, termination, or cancellation of this
Agreement: Indemnification; Insurance; Governing Law; Data Practices; and Audit.
9. Amendments. Any amendment to this Agreement must be in writing and signed by both
parties.
10. Assignment. No assignment or attempted assignment of this Agreement or of any rights
hereunder shall be effective without the prior written consent of the City.
11. Authority. Each of the undersigned parties warrants it has the full authority to execute this
Agreement.
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Valley Place Park and Bass Lake Park Trails – Odessa II
12. No Personal Liability. No officer, agent or employee of the City shall be personally liable
to the Contractor, or any successor in interest, in the event of any default or breach by the City
on any obligation or term of this Agreement.
13. Notices. Any notice, demand, or other communication under this Agreement by either party
to the other shall be sufficiently given or delivered if it is dispatched by registered or certified
mail, postage prepaid, return receipt requested, or delivered personally to the addresses listed
in the preamble to this Agreement, or at such other address with respect to either such party
as that party may, from time to time, designate in writing and forward to the other as provided
in this section.
14. No Agency. The Contractor acknowledges that nothing contained in this Agreement nor any
act by the City or the Contractor shall be deemed or construed by the Contractor or by any
third person to create any relationship of third-party beneficiary, principal and agent, limited
or general partner, or joint venture between the City and the Contractor.
15. Counterparts. This Agreement may be executed in any number of counterparts, each of
which shall constitute one and the same instrument.
16. Governing Law. This Agreement shall be governed by and construed in accordance with the
laws of the state of Minnesota. Any disputes, controversies, or claims arising out of this
Agreement shall be heard in the state or federal courts of Minnesota, and all parties to this
Agreement waive any objection to the jurisdiction of these courts, whether based on
convenience or otherwise.
17. Compliance with Laws. The Contractor warrants that all work performed pursuant to this
Agreement shall be in compliance with all federal, state and local laws, ordinances,
regulations, rules, and standards.
18. Entire Agreement. This Agreement, any attached exhibits and any addenda or amendments
signed by the parties shall constitute the entire Agreement between the City and Contractor,
and supersedes any other written or oral agreements between and City and Contractor.
19. Severability. In the event that any one or more of the provisions of this Agreement, or any
application thereof, shall be found to be invalid, illegal or otherwise unenforceable, the
validity, legality, and enforceability of the remaining provisions in any application thereof
shall not in any way be affected or impaired thereby.
20. Waivers. No failure by any party to insist upon the strict performance of any covenant, duty,
agreement, or condition of this Agreement or to exercise any right or remedy consequent upon
a breach thereof, shall constitute a waiver of any such breach of any other covenant,
agreement, term, or condition, nor does it imply that such covenant, agreement, term or
condition may be waived again.
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21. Data Practices. Any and all data created, collected, received, stored, used, maintained, or
disseminated by the parties pursuant to this Agreement shall be administered in accordance
with, and is subject to the requirements of the Minnesota Government Data Practices Act,
Minnesota Statutes, Chapter 13.
22. Audit. The Contractor agrees that the City, the Minnesota State Auditor, and Minnesota
Legislative Auditor, or any of their duly authorized representatives, at any time during normal
business hours and as often as they may reasonably deem necessary, shall have access to and
the right to examine, audit, excerpt and transcribe any books, documents, papers, and records
that are relevant and involve transactions relating to this Agreement for six years following
termination of this Agreement.
IN WITNESS THEREOF, the parties hereto have executed this Agreement as of the day
and year written above.
CITY: CONTRACTOR:
By: _____________________________ By: ___________________________
Anne Norris
Its: City Manager Its: ___________________________
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EXHIBIT A
Contractor’s Quote
and Scope of Work
7.7
RIM:886.96INV:INV:INV:INV:INV:INV:MB10"12"10"24"24"36"18"18"6"24"24"NO PARKINGNO PARKING2116151525RIM:886.96INV:INV:INV:INV:INV:INV:MBNO PARKINGNO PARKING2525SCALE IN FEET0H:20 40VALLEY PLACE PARK - OVERALL LAYOUT PLAN11LEGEND:SCALE IN FEET0H:10 20VALLEY PLACE PARK - PARKING LOT LAYOUT ENLARGEMENT PLAN21NOTE:ALL SITE AMENITIES TO BEFURNISHED AND INSTALLEDBY OTHERSExisting
Building
7.7
6"1009866.92hedge line B1010866.64hedge line12"18"1025866.76hedge line24"1027866.86hedge line18"18"1042866.96hedge line E1043867.05hedge line B12"12"1046866.83hedge line4"1061866.97hedge line1062867.23hedge line1063867.14hedge line E24"18"1098867.67sign edge1099867.77sign edge6X4"24"SRIM:866.33 CNOINV:INV:INV:INV:INV:INV:SRIM:866.62N857.97INV:S857.97INV:INV:INV:INV:INV:SRIM:864.65INV:INV:INV:INV:INV:INV:22252525154525SCALE IN FEET0H:20 40BASS LAKE PARK - OVERALL LAYOUT PLAN12LEGEND:SCALE IN FEET0H:48BASS LAKE PARK - SHELTER ENLARGEMENT PLAN22NOTE:ALL SITE AMENITIES TO BEFURNISHED AND INSTALLEDBY OTHERS7.7
RIM:886.96INV:INV:INV:INV:INV:INV:MB10"10"24"12"10"24"24"36"18"18"6"24"24"NO PARKINGNO PARKINGSCALE IN FEET0H:20 40VALLEY PLACE PARK - OVERALL GRADING PLAN13LEGEND:889889.58 EX889.58HPLPTCTC/GGSGTSBSNOTE:CONTRACTOR TO STRIP ANDSTOCKPILE TOPSOIL ONSITE FOR CITY TO BACKFILLPAVEMENT EDGES AND SITERESTORATION.Existing
Building
7.7
Memorandum
DATE: June 15, 2021
TO: City Council
FROM: Mark Ray, PE, Crystal Director of Public Works
Bernie Weber, New Hope Director of Public Works
SUBJECT: Fiber optic connection to the Medicine Lake water tower
Annually, the JWC allocates funding to the improvement of security at JWC facilities. Late 2017 and early 2018,
staff worked with the Department of Homeland Security’s Protective Security Advisors to do an assessment of all
JWC facilities. Staff have been looking for ways to implement the recommendations in the report. What became
apparent in this effort is that long term the JWC should plan on having fiber optic lines to all facilities to allow for
SCADA communication for remote monitoring (with cellular backup) and security upgrades.
Currently, the Crystal pump house, New Hope North Water Tower (done in 2020), and Golden Valley tower have
fiber connected to them. The reason that fiber connectivity is the primary focus is that it provides for a more
reliable SCADA connection. Since the proposed system would be owned and operated by LOGIS, they are the only
vendor that a quote was requested from.
The JWC approved this item on Wednesday, June 9. Since Crystal staff are managing the project, with the City
being the funding pass-through agency, the Council needs to approve it as well. The reason Crystal staff are
managing the project is because it is the same LOGIS staff involved with this project that are involved with the
fiber optic connection to the City sanitary sewer lift stations. So we are already regularly talking with them to
coordinate everything.
Project Cost
The quote from LOGIS was for $57,031. After the fiber is operational there will be some additional costs with Total
Control to connect the SCADA system into the fiber system so it all communicating properly. All the costs will be
paid by the Joint Water Commission.
Project Funding
The JWC CIP has $100,000 allocated for this project. Other than staff time managing the project, there are no City
costs for this work.
Attachments
•Estimated cost
•Route map
Recommended Action
Motion authorizing the contract with LOGIS to provide the fiber connection to the Medicine Lake Water Tower.
7.8
Project Design and Cost Estimate Approval
Request
Enter Incident#(?)Name *Member *
Email *Phone *
Are There Other Members/External Parties Involved In The Project
Other Participating Members/External Parties
Organization Name Contact Name Contact Phone Contact Email
Do You Know The Cost Allocation For This Project (?)
Project Name *(?)
*
Primary Contact
238707 Matt Haga Crystal
matthew.haga@crystalmn.gov 7635311101
Yes
No
Crystal Mark Ray 7635311160 Mark.Ray@crystalmn.gov
Yes
No
Project Scope
CY-Medicine Lake Tower 2801 Hillsboro Ave N - New build 2021
Planned
Unplanned
7.8
Planned Project Category
Project Location *(?)
Location A *(?)
Location Z (?)
Project Description *
Submitted Date *
Due Date
Priority
Benefits
Attachment
Approval Request *
Labor
Materials
Cost Estimate Total *
Estimated Annual Locates
New Build
Repair
Relocate
Overbuild
Splice Only
Other
Medicine Lake Tower 2801 Hillsboro Ave N, New Hope
Medicine Lake Tower 2801 Hillsboro Ave N, New Hope
Crystal City Hall
connection of Medicine Lake Tower to Crystal City Hall
5/27/2021
11/30/2021
High- 3 Months or Less
CNET
INET
238707 Route Map.docx 1.18MB
Administrative Use Only
Installation of two 1.25” conduit,48F and handholes (shown in pink) needed to connect the Medicine
Lake Tower to Crystal City Hall using Hennepin County existing network (shown in blue). This cost
estimate includes the materials, labor, splicing and one outdoor switch.
Materials $17,121.00
Labor $39,910.00
Total $57,031.00
39,910.00$
17,121.00$
57,031.00$
320.00$
7.8
Attachment *
238707 Route Map.docx 1.18MB
7.8
238707 CY-Medicine Lake Tower 2801 Hillsboro Ave N - New build 2021
Installation of two 1.25” conduit,48F and handholes (shown in pink) needed to connect the Medicine
Lake Tower to Crystal City Hall using Hennepin County existing network (shown in blue). This cost
estimate includes the materials, labor, splicing and one outdoor switch.
Materials $17,121.00
Labor $39,910.00
Total $57,031.00
Estimated annual locates $320.00
7.8
RESOLUTION NO. 2021- _____
AUTHORIZING THE CONTRACT FOR FIBER OPTIC INSTALLATION
TO THE MEDICINE LAKE WATER TOWER
WHEREAS, the Crystal City Council is committed to providing and maintaining quality
infrastructure that is essential for everyday residential, commercial, industrial, and recreational
activities in the City; and
WHEREAS, the Joint Water Commission’s (JWC) Capital Improvement Project has funds
available for fiber optic installation to the Medicine Lake water tower; and
WHEREAS, the Joint Water Commission’s (JWC) approved this project at their June 9th
meeting; and
WHEREAS, the City is acting on behalf of the JWC in administering this contract; and
WHEREAS, LOGIS will obtain bids for the work; and
WHEREAS, LOGIS will own and operate the fiber network, like other City fiber
communications.
NOW, THEREFORE, BE IT RESOLVED that the Crystal City Council hereby authorizes the
contract with LOGIS for the installation of fiber optic lines to the Medicine Lake water tower.
BE IT FURTHER RESOLVED that the Mayor and/or City Manager are hereby authorized to
sign said contract.
Adopted by the Crystal City Council this 15th day of June 2021.
Jim Adams, Mayor
ATTEST:
Christina Serres, City Clerk
7.8
CITY OF CRYSTAL
RESOLUTION #2021 - ______
RESOLUTION RECOGNIZING JUNE AS PRIDE MONTH
WHEREAS, a priority of the Crystal City Council is to make Crystal a welcoming and
inclusive community; and
WHEREAS, all Crystal residents, regardless of age, gender identity, race, color, religion,
marital status, national origin, sexual orientation, or physical challenges, have the right to feel
safe, to not be discriminated against, and to live without the threat of harassment; and
WHEREAS, the Crystal City Council is committed to making Crystal an inclusive and
welcoming community for all, which includes Crystal’s LGBTQ community; and
WHEREAS, the Crystal City Council Rules Section 2.2.8 provides the City Council may use
symbolic resolutions to make public statements on matters directly related to the business of the
City; and
WHEREAS, the City Council determines that making a public statement supporting
Crystal’s LGBTQ community is directly related to the City’s efforts to be a more welcoming and
inclusive community.
NOW THEREFORE, BE IT RESOLVED, by the Crystal City Council that:
1.June 2021 is recognized as Pride month in Crystal to commemorate the contributions of
our LGBTQ community; and
2.The community is encouraged to participate in Pride events in the community and
neighboring communities.
Adopted this June 15, 2021.
BY THE CITY COUNCIL
_____________________________
Jim Adams, Mayor
ATTEST:
______________________________
Chrissy Serres, City Clerk
7.9
CITY OF CRYSTAL
RESOLUTION #2021 - _____
RESOLUTION RECOGNIZING JUNETEENTH
WHEREAS, a priority of the Crystal City Council is making Crystal a welcoming and
inclusive community; and
WHEREAS, the Crystal City Council Rules Section 2.2.8 provides the City Council may use
symbolic resolutions to make public statements on matters directly related to the business of the
City; and
WHEREAS, the City Council determines that making a public statement recognizing
Juneteenth and what it stands for is directly related to the City’s efforts to be a more welcoming
and inclusive community.
WHEREAS, June 19th has a special meaning to Americans, and is called "JUNETEENTH"
combining the words June and Nineteenth, and has been celebrated by Americans for over 150
years; and
WHEREAS, Juneteenth is the oldest nationally celebrated commemoration of the ending
of slavery in the United States. It has been celebrated under many names; some are Freedom
Day, Jubilee Day, Second Independence Day, Emancipation Day; and
WHEREAS, the Emancipation Proclamation was issued on January 1, 1863, however,
notice of the signing of the Emancipation Proclamation was not received in Galveston, TX until
after Union General Gordon Grainger traveled to announce the general order on June 19, 1865;
and
WHEREAS, the City Council acknowledges those who suffered from slavery and its
aftermath; and
WHEREAS, the Crystal City Council acknowledges our African – American residents’
freedom, contributions, and achievements as part of our American history.
NOW, THEREFORE, BE IT RESOLVED, by the Crystal City Council that:
1.June 19, 2021 is recognized as Juneteenth Freedom Day in Crystal;
2.The history of African-Americans in Crystal and the US is recognized; and
3.The community is encouraged to learn more about Juneteenth American history by
participating in local celebrations and observations and events sponsored by local
agencies such as the Hennepin County Library (events June 13 – 19 at www.hclib.org) or
the Minneapolis Parks & Recreation Board (events the week of June 14 at
www.minneapolisparks.org ).
7.10
Adopted this 15th day of June 2021.
BY THE CITY COUNCIL
_____________________________
Jim Adams, Mayor
ATTEST:
_________________________
Chrissy Serres, City Clerk
7.10
CITY OF CRYSTAL
RESOLUTION #2021 - ____
RESOLUTION FOR A DAY OF FASTING AND PRAYER ON JUNE 23, 2021 FOR THE SUCCESS OF
OUR CONVERSATION ON EQUALITY, EQUITY AND INCLUSION; AND RECOGNIZING THE
NATIONAL DAY OF PRAYER
WHEREAS, on June 23, 2021 the city of Crystal is holding a community conversation to
promote unity in our community by having a community conversation around the topic of
equality, equity an inclusion; and
WHEREAS, throughout our country’s history, citizens of many religions and beliefs have
turned to prayer for strength, hope, and guidance; and
WHEREAS, the First Amendment of our United States Constitution protects the rights of
free speech and religious liberty, including the right of all citizens to pray; and
WHEREAS, American leaders have called national days of fasting and prayer throughout
our history, including presidents George Washington, John Adams, James Madison, Abraham
Lincoln, and Harry S Truman; many governors, and others; and
WHEREAS, the United States observes an annual National Day of Prayer on the third
Thursday in May to recommit to the core freedoms that defined and guided our country from
its earliest days and to celebrate that we can exercise our convictions freely regardless of faith
or beliefs; and
WHEREAS, the United States is currently sharply divided, and is in need of something
that can draw us together and unify us in heart and mind; and
WHEREAS, the Crystal City Council Rules Section 2.2.8 provides the City Council may use
symbolic resolutions to make public statements on matters directly related to the business of
the City; and
WHEREAS, the City Council determines that making a public statement observing the
National Day of Prayer directly relates to the business of the City as it recognizes the core
freedoms on which the City is built and the closely held values of the City’s residents regardless
of their faith or beliefs.
NOW, THEREFORE, BE IT RESOLVED, by the Crystal City Council that:
1.Crystal residents are invited to give thanks for our many freedoms through fasting and
prayer, consistent with their own faiths, on our City Day of Prayer June 23, 2021 to support
our city through our community conversation; and
7.11
2. The National Day of Prayer is observed in the City of Crystal.
Adopted this 15th day of June 2021.
BY THE CITY COUNCIL
________________________________
Jim Adams, Mayor
ATTEST:
_________________________
Chrissy Serres, City Clerk
7.11
CITY OF CRYSTAL
RESOLUTION #2021 - ____
RESOLUTION RECOGNIZING INDEPENDENCE DAY (JULY 4)
WHEREAS, the 4th of July is the anniversary of the creation of the United
States’ Declaration of Independence and Americans celebrate this day as
Independence Day; and
WHEREAS, the Crystal City Council Rules Section 2.2.8 provides the City
Council may use symbolic resolutions to make public statements on matters directly
related to the business of the City; and
WHEREAS, the City Council determines that making a public
statement regarding Independence Day directly relates to the business of the City as
it supports the freedoms on which the City was formed and under which it operates
to serve the best interest of those living and working within the City; and
WHEREAS, we recognize that men and women of all ethnicities and creeds
have died to make and keep America a nation free from the grip of despotism, and
WHEREAS, Americans of all races and nationalities are included in the text
from the Declaration of Independence, which states “We hold these truths to be self-
evident, that all men are created equal, that they are endowed by their Creator with
certain unalienable Rights, that among these are Life, Liberty and the pursuit of
Happiness.--That to secure these rights, Governments are instituted among Men,
deriving their just powers from the consent of the governed…”; and
WHEREAS, America has not been a perfect nation, but it has pursued being
made more perfect as many have stood for liberty and justice on behalf of the
disadvantaged, including (but not limited to) the abolition of slavery. John Quincy
Adams (an abolitionist leader) said that, “The inconsistency of the institution of
domestic slavery with the principles of the Declaration of Independence was seen and
lamented by all the southern patriots of the Revolution; by no one with deeper and
more unalterable conviction than by the author of the Declaration himself [Jefferson].
No charge of insincerity or hypocrisy can be fairly laid to their charge. Never from
their lips was heard one syllable of attempt to justify the institution of slavery. They
universally considered it as a reproach fastened upon them by the unnatural step-
mother country [Great Britain] and they saw that before the principles of the
7.12
Declaration of Independence, slavery, in common with every other mode of
oppression, was destined sooner or later to be banished from the earth. Such was the
undoubting conviction of Jefferson to his dying day. In the Memoir of His Life, written
at the age of seventy-seven, he gave to his countrymen the solemn and emphatic
warning that the day was not distant when they must hear and adopt the general
emancipation of their slaves. ” (An Oration Delivered Before the Inhabitants of the Town of
Newburyport at Their Request on the Sixty-First Anniversary of the Declaration of Independence, July 4,
1837); and
WHEREAS, we aim to always remember the miraculous origin of this unique
and unprecedented nation as Frederick Douglass one said, “The 4th of July is the first
great fact in your nation's history—the very ring-bolt in the chain of your yet
undeveloped destiny. Pride and patriotism, not less than gratitude, prompt you to
celebrate and to hold it in perpetual remembrance. The principles contained in that
instrument are saving principles. Stand by those principles, be true to them on all
occasions, in all places, against all foes, and whatever cost.”; and
WHEREAS, on Independence Day, Americans renew allegiance to the
principles of self-government and to the spirit of freedom upon which our country
was founded.
NOW, THEREFORE, BE IT RESOLVED, by the Crystal City Council that:
July 4, otherwise known as Independence Day, is recognized as a day to:
- Observe and protect our liberties and share that liberty with fellow citizens; and
- Celebrate the anniversary of the signing of the Declaration of Independence.
Adopted this 15th day of June 2021.
BY THE CITY COUNCIL
________________________________
Jim Adams, Mayor
ATTEST:
_________________________
Chrissy Serres, City Clerk
7.12
AGENDA
ECONOMIC DEVELOPMENT AUTHORITY OF THE CITY OF CRYSTAL
REGULAR MEETING
TUESDAY, JUNE 15, 2021
IMMEDIATELY FOLLOWING THE 7:00 P.M. CITY COUNCIL MEETING
CRYSTAL CITY HALL
COUNCIL CHAMBERS
1. Call to order *
2. Roll call *
3. Approval of minutes from June 1, 2021 Regular Meeting
4. Public hearing and consideration of a resolution authorizing the sale of an EDA lot at
4741 Welcome Ave. N. for construction of a 4-unit residential building (item continued
from June 1, 2021 meeting)
5. Public hearing and consideration of a resolution authorizing the sale of an EDA lot at
3556 Major Ave. N. for construction of a single family home
6. Consideration of a motion to authorize a drainage and utility easement on the west 10
feet, north 5 feet and east 5 feet of 3556 Major Ave. N.
7. Consideration of a resolution supporting Tax Increment Financing for a multi-family
housing project at 5240 West Broadway
8. Other business *
9. Adjournment *
*Items for which no materials are included in the packet
Page 1 of 3
Minutes of the
Economic Development Authority of the City of Crystal
Regular Meeting
Council Chambers
June 1, 2021
1. Call to Order
President Parsons called the meeting of the Economic Development Authority of the City
of Crystal (EDA) to order at 7:58 p.m.
2. Roll Call
Upon call of the roll, the following members were present: Jim Adams, Brendan Banks,
John Budziszewski, David Cummings, Nancy LaRoche and Olga Parsons.
The following staff were present: Executive Director Anne Norris, Deputy Executive
Director John Sutter and City Attorney Troy Gilchrist.
3. Approval of Minutes
Moved by Commissioner LaRoche (Adams) to approve the minutes from the May 18,
2021 regular meeting. Motion carried.
4. Public hearing and consideration of a resolution authorizing the sale of an EDA lot at
4741 Welcome Ave. N. for construction of a 4-unit residential building
Staff reported that the builder has not yet completed their detailed plans for EDA
consideration. Staff requested that the EDA open the hearing, take any comment, and
then continue the hearing and consideration of the resolution to June 15, 2021.
President Parsons opened the hearing. No persons appeared.
Moved by Commissioner Adams (LaRoche) to continue to June 15, 2021 the public
hearing and consideration of a resolution authorizing the sale of an EDA lot at 4741
Welcome Ave. N. for construction of a 4-unit residential building. Motion carried.
5. Consideration of a Resolution authorizing an application to the Hennepin County
Corridor Planning program for Douglas Drive and West Broadway
Staff presented the purpose of the proposed grant application and requested EDA
adoption of the resolution.
Moved by Commissioner Adams (Budziszewski) to adopt the resolution authorizing an
application to the Hennepin County Corridor Planning program for Douglas Drive and
West Broadway. Motion carried.
Page 2 of 3
6. Potential Tax Increment Financing request for Sand Companies development at 5240
West Broadway
Staff presented information about the potential TIF district and requested EDA discussion
in advance of a potential action item on June 15.
Megan Carr from Sand Companies and Stacie Kvilvang from Ehlers were present to
answer questions from the board.
Because this was a discussion item, no EDA action was necessary.
7. Other Business
Staff provided an update on construction activity and new business openings.
8. Adjournment
Moved by Commissioner Banks (Budziszewski) to adjourn the meeting. Motion carried.
The meeting adjourned at 8:37 p.m.
Page 3 of 3
These minutes of the June 1, 2021 meeting of the Crystal Economic Development Authority
were approved by the Authority on ________________ ____, 20___.
______________________________
Olga Parsons, President
ATTEST:
______________________________
Therese Kiser, Secretary
Page 1 of 3
_____________________________________________________________________
FROM: Dan Olson, City Planner
____________________________________________________________________
TO: Anne Norris, Executive Director (for June 15 meeting)
DATE: June 10, 2021
RE: Continued Public Hearing. Consider adoption of a resolution
approving the sale of 4741 Welcome Avenue North for construction
of a new four-unit residential building
Gernco Construction has submitted a proposal to purchase the lot at 4741 Welcome
Avenue North and construct a four-unit residential building. The EDA tentatively
accepted the proposal at the May 4, 2021 meeting. On June 1 the EDA opened and
then continued the public hearing until June 15 so that the builder could provide
detailed site and building plans necessary for EDA review and approval of the lot sale.
Gernco Construction is a state-licensed residential building contractor with no
enforcement actions.
Attached are builder’s proposal form, site plan, and an illustration of the four-unit
building that would be built on the lot. Since the May 4th EDA meeting, Gernco has
reworked the site plan and building design so that it will now meet the required
minimum setbacks from property lines (Gernco previously believed they would need to
request setback variances). The floor plan for each unit consists of a
kitchen/dining/living room on the first floor with bedrooms on the second floor. Please
see the bottom of page 3 for a description of the building and anticipated timeline for
zoning approvals and construction.
Attachment:
A. Gernco Construction proposal
B. Resolution
EDA Staff Report
Lot Sale – Continued Public Hearing
4741 Welcome Avenue North
Page 2 of 3
Aerial Photo:
Page 3 of 3
Building Element Gernco Proposal
Owned or rented Rented; builder may choose to live in one of the units (but
this will not be mandated)
Number and type of units 4 unit apartment building but will look like townhomes
(each unit will have private entrances/garages but may not
be sold separately)
Building height 2 story
No. bedrooms & bathrooms
(same for all four units)
3 bedrooms on second floor
2 bathrooms on second floor and ½ bathroom on first floor
Size of each floor by unit Basement (unfinished)
Units A & D 546 SF Units B & C 773 SF
First Floor
Units A & D 546 SF Units B & C 773 SF
Second Floor
Units A & D 963 SF Units B & C 1,159 SF
Total square feet:
• Units A & D 2,055 SF (1,509 finished)
• Units B & C 2,705 SF (1,932 finished)
Attached garage size 378-385 SF
Variances requested No
Anticipated Timeline 7/13 - submit UDC appl. (site plan)
8/09 - PC hearing
8/17 - CC action
8/27 - sign development agreement and provide $2,000
earnest money
10/16 – last day to close on lot purchase
2021 or 2022 – begin construction
REQUESTED EDA ACTION (after taking any public comment and closing the
public hearing):
EDA adoption of a resolution approving the sale of the lot at 4741 Welcome
Avenue North to Gernco Construction
Attachment A
Gernco Proposal
exterior
elevations
date 6-3-21
(entry
door)
(lap
siding)
(brick
wall)
(roofing)
(roofing)(roofing)(roofing)
(roofing)
(window)(window)(window)(window)
(window)(window)(window)(window)(window)(window)(brick
wall)
(roofing)
(roofing)
(brick
wall)
(roofing)(roofing)(roofing)
(entry
door)
(window)
(window)
(window)
(patio
door)
(window)
(window)(window)(window)(window)
(brick
wall)
(entry
door)
(lap
siding)
(lap
siding)
(roofing)(roofing)(roofing)
(windows)(windows)(window)
(window)
(brick
wall)(brick
wall)
(window)(window)
(entry
door)
(windows)(windows)
(roofing)(roofing)
(roofing)
east elevation (Welcome Av)
west elevation (alley)
north elevation
south elevation
(brick
wall)
(garage door)(garage door)
(brick
wall)
(garage door)(garage door)
1" = 20' when
printed on 11x17
sheet size
(patio
door)
(window)
(patio
door)
(patio
door)
(lap
siding)
(window)
GRADE NOTE: grade elevation is drawn for a
slab-on-grade building. For a building with a
basement, the grade will be lowered approx 18".
GRADE NOTE: grade elevation is drawn for a
slab-on-grade building. For a building with a
basement, the grade will be lowered approx 18".
GRADE NOTE: grade elevation is drawn for a
slab-on-grade building. For a building with a
basement, the grade will be lowered approx 18".
GRADE NOTE: grade elevation is drawn for a
slab-on-grade building. For a building with a
basement, the grade will be lowered approx 18".
Building Elevations
install
sign
noting
"Unit C in
back",
verify
location
install
sign
noting
"Unit D in
back",
verify
location
date 6-3-21,
rev 6-9-21
12x8 patio
or deck
12x8 patio
or deck
12x8 patio
or deck
12x8 patio
or deck
property
corner
property
corner
property
corner
property
corner
sidewalk
sidewalk
soffit / floor
above
soffit / floor
above
roof above
roof above
(entry door)
(entry door)
(entry door)
(entry door)
1" = 20' when
printed on 11x17
sheet size
neighboring
building
neighboring
building
neighboring
driveway
neighboring
driveway
#4741ALLEY WELCOME
AV NO
NW UNIT
(D)
NE UNIT
(A)
SW UNIT
(C)
SE UNIT
(B)
driveway driveway
sidewalk to curb
sidewalk
sidewalk
sidewalk
sidewalk to curb
power
pole
sidewalk
SITE PLAN NOTES:
~~ Impervious Surface Area = 9580 sq ft
~~ Lot Area = 14,080 sq ft
~~ Impervious Ratio = 68% actual (75% max allowed)
~~ Stormwater Management TBD
~~ Landscape Design TBD
~~ Trash & Recycle Cart Storage TBD
~~ Utility Plan TBD 7'87'74'4
42'42'
4'4
28'8 20'518'18'23'520'618'18'23'48'7'921'534'24'519'534'825'915'1022'725'815'941'11 46'4 46'4 41'8 79'10176'3
176'3
79'1015'104'848'392'8
Site Plan
SW
BASEMENT
22'6 x 24'9
UNEXCAVATED
19'11 x 17'
UNEXCAVATED
9'4 x 4'
UNEXCAVATED
19'11 x 17'
NW
BASEMENT
24'10 x 21'9
UNEXCAVATED
19'11 x 17'
UNEXCAVATED
19'11 x 17'
UNEXCAVATED
9'4 x 4'
NE
BASEMENT
24'10 x 21'9
SE
BASEMENT
22'6 x 24'9
egress
window
and well
egress
window
and well
egress
window
and well
egress
window
and well
DECK
ABOVE
DECK
ABOVE
DECK
ABOVE
DECK
ABOVE
plan north
1/8" = 1'-0" when
printed on 11x17
sheet size
date 6-3-21,
rev 6-9-21
UPUP
UPUP18'18'7'843'88'4'88'8'18'810'44'412'
1'1'
12'4'410'418'8
92'8
4'4 29'12'
1'1'
12'29'4'4
92'8
4'4 4'4
7'818'18'64'48'4'88'8' Basement Floor Plan
Notes:
Mechanical
room
location for
each unit
TBD
Optional
bath rough-
in for each
unit TBD
GARAGE
20'3 x 17'3
LIVING
16'11 x 11'10
GARAGE
20'3 x 17'3
LIVING
22'6 x 14'3
KITCHEN
+ DINING
17'10 x 9'9
MUD +
POWDER
+ STAIRS
6'8 x 17'3
KITCHEN
+ DINING
19'1 x 10'4
ENTRY + STAIRS
18'3 x 7'2
MUD +
POWDER
5'5 x 15'5
1/8" = 1'-0" when
printed on 11x17
sheet size
12x8 patio
or deck
8x12 patio
or deck
8x12 patio
or deck
12x8 patio
or deck
property line
property line
entrance entrance
entranceentrance
plan north
date 6-3-21
DNUP
UP DN 15'104'1179'1115'942'42'48'44'818'18'7'84'4
28'1117'5 17'5
4'4
28'11
First Floor Plan
MASTER BDRM
20'5 x 12'4
CLOSET
4'8 x 8'4
BEDROOM
#3
8'10 x 16'3
MASTER BDRM
13'11 x 17'3
MASTER BATH
12'5 x 6'6
BEDROOM
#2
8'8 x 12'3
BEDROOM
#2
10'2 x 9'11
OPEN
BELOW
17'7 x 3'8
HALL
BATH
7'8 x 8'4
LAUNDRY
5'6 x 8'4
MASTER
CLOSET
7'5 x 7'7
BEDROOM
#3
8'6 x 14'10
CLOSET
5'11 x 6'9
MASTER BATH
20'5 x 4'7
CLOSET
5'3 x 9'11
HALL
BATH
5' x 7'10
LAUNDRY
6'4 x 7'10
(same plan as SW unit,
mirrored)
(same plan as NW unit,
mirrored)
date 6-3-21,
rev 6-9-21
second
floor
plan
plan north
1/8" = 1'-0" when
printed on 11x17
sheet size
roof
below
roof
below
wall belowwall below
DN
DN
92'8 46'4
22'825'848'4Second Floor Plan
ECONOMIC DEVELOPMENT AUTHORITY OF THE CITY OF CRYSTAL
HENNEPIN COUNTY
STATE OF MINNESOTA
RESOLUTION NO. 2021 - 04
A RESOLUTION AUTHORIZING THE SALE OF
4741 WELCOME AVENUE NORTH
FOR CONSTRUCTION OF A FOUR UNIT RESIDENTIAL BUILDING
WHEREAS, the Economic Development Authority of the City of Crystal (“the EDA”) is the
owner of 4741 Welcome Avenue North (“the Property”), legally described as:
Lots 3 and 4, except the south 40 feet thereof, Block 2, Twin Lake Addition, Hennepin
County, Minnesota
WHEREAS, the EDA has solicited proposals from builders who desire to purchase the
Property from the EDA and construct thereon a new residential building; and
WHEREAS, the EDA has reviewed and accepted the proposal from Gernco Construction.
NOW, THEREFORE, BE IT RESOLVED that the EDA authorizes the sale of the Property to
Gernco Construction.
BE IT FURTHER RESOLVED that the sale shall be completed in accordance with the terms of
the Purchase and Development Agreement in substantially the form on file in City Hall, and
that the President and Executive Director are hereby authorized to sign said Agreement and
other documents required to complete the sale of the Property to Gernco Construction.
Adopted this 15th day of June, 2021.
____________________________________
Olga Parsons, President
____________________________________
Anne Norris, Executive Director
Attachment B
Page 1 of 3
_____________________________________________________________________
FROM: Dan Olson, City Planner
____________________________________________________________________
TO: Anne Norris, Executive Director (for June 15 meeting)
DATE: June 10, 2021
RE: Public Hearing. Consider adoption of a resolution approving the sale
of 3556 Major Avenue North for construction of a new single-family
home
Great Buy Homes has submitted a proposal to purchase the lot at 3556 Major Avenue North
for the asking price - $25,000. The EDA gave tentative acceptance to the lot sale at their
May 18, 2021 meeting. The site plan and home design have not changed since then, except
for the removal of the 2-foot cantilevered floor on the second level, which reduces its area
from 968 to 924 sq. ft (the number of bedrooms and bathrooms on that level will not
change).
The lot was discounted in the Request for Proposal (RFP) since the builder will need to
install sewer and water service connections. Great Buy Homes is a state-licensed
residential building contractor with no enforcement actions and considerable experience in
home construction.
Attached are builder’s proposal form, site plan, and an illustration of the two-story home that would
be built on the lot. The site plan reflects approval of a setback variance on June 15, 2021 to the
front and north sides of the home (City Council agenda item 7.4). New drainage and utility
easements will also be dedicated on the property by the EDA prior to the lot sale (EDA agenda
item 6). The builder does not yet have a buyer for the home, which would be finished as follows:
➢ Main floor. Approximately 924 square feet on the main level with an open living-
dining-kitchen area, one bedroom/den and a bathroom.
➢ Second floor. Approximately 924 sq. ft on the second floor with three bedrooms and
two bathrooms.
➢ Lower level. Approximately 730 unfinished sq. ft. on the lower level, with an option to
have it finished with an additional bedroom, a bathroom, and family room.
➢ Garage: A two-car detached garage would be accessed from the alley.
Attachments:
A. Great Buy Homes proposal
B. Resolution
EDA Staff Report
Lot Sale – Public Hearing
3556 Major Avenue North
Page 2 of 3
Site Location and 2020 Aerial Photo:
Page 3 of 3
REQUESTED EDA ACTION: EDA adoption of a resolution approving the sale of the lot at
3556 Major Avenue North to Great Buy Homes.
If the lot sale is approved the builder is planning to close on the property in early July and
finish construction of the new home by the end of 2021.
ATTACHMENT A
Proposal from Great Buy Homes
f:\jobs\9461 - 9480\9479 - woodland homes\cad c3d\survey\9479.001 variance exhibit.dwgSave Date:05/19/21Revisions:S E C. 6S E C. 7
19REVISIONS BY
29
39
49
59
ECONOMIC DEVELOPMENT AUTHORITY OF THE CITY OF CRYSTAL
HENNEPIN COUNTY
STATE OF MINNESOTA
RESOLUTION NO. 2021 - 05
A RESOLUTION AUTHORIZING THE SALE OF
3556 MAJOR AVENUE NORTH
FOR NEW HOUSE CONSTRUCTION
WHEREAS, the Economic Development Authority of the City of Crystal (“the EDA”) is the
owner of 3556 Major Avenue North (“the Property”), legally described as:
Lot 30, Block 3, Woodland Homes, Hennepin County, Minnesota.
WHEREAS, the EDA has solicited proposals from builders who desire to purchase the
Property from the EDA and construct thereon a new single family house; and
WHEREAS, the EDA has reviewed and accepted the proposal from Great Buy Homes.
NOW, THEREFORE, BE IT RESOLVED that the EDA authorizes the sale of the Propert y to
Great Buy Homes.
BE IT FURTHER RESOLVED that the sale shall be completed in accordance with the terms of
the Purchase and Development Agreement in substantially the form on file in City Hall, and
that the President and Executive Director are hereby authorized to sign said Agreement and
other documents required to complete the sale of the Property to Great Buy Homes.
Adopted this 15th day of June, 2021.
____________________________________
Olga Parsons, President
____________________________________
Anne Norris, Executive Director
Attachment B
EASEMENT DEDICATION FOR 3556 MAJOR AVENUE NORTH
PAGE 1 OF 2
___________________________________________________________________________
FROM: Dan Olson, City Planner
___________________________________________________________________________
TO: Anne Norris, Executive Director (for June 15 Meeting)
DATE: June 10, 2021
RE: Easement dedication for EDA property at 3556 Major Avenue North
A. BACKGROUND
The EDA is asked to approve the dedication of a drainage and utility easement for the
property it owns at 3556 Major Avenue North. The EDA is in the process of selling this
property for a new single-family home.
Attachment:
A. Easement document
BACKGROUND
The EDA is proposing to sell the vacant lot at 3556 Major Avenue North to Great Buy Homes
(see agenda item 5). Since the lot was platted in 1911 without any drainage and utility
easements, the EDA is asked to approve the dedication of easements along the adjacent
streets and alley to ensure space for current and future utility installation and repair.
The easements to be dedicated are:
▪ 10’ wide easement along the front (Major Avenue) property line
▪ 5’ wide easement along the north (36th Avenue) and east (alley) property lines
Please see the illustration on the following page.
EDA STAFF REPORT
Easement dedication for EDA property
EASEMENT DEDICATION FOR 3556 MAJOR AVENUE NORTH
PAGE 2 OF 2
B. REQUESTED ACTION
Motion to approve the dedication of a drainage and utility easements along the
westerly 10 feet, northerly 5 feet and easterly 5 feet of 3556 Major Avenue North.
Torrens
(Certificate No. 1098432)
EASEMENT
THIS INSTRUMENT is made by Economic Development Authority of the City of Crystal,
a Minnesota public body corporate and politic, (“EDA”) in favor of the City of Crystal, a Minnesota
municipal corporation (“City”).
Recitals
A.EDA is fee owner of the following described property in Hennepin County, Minnesota (the
“Property”):
Lot 30, Block 3, Woodland Homes, Hennepin County, Minnesota
B.EDA desires to grant to the City an easement over the portion of the Property legally
described in the attached Exhibit A (“Easement Area”), according to the terms and conditions
contained herein.
Terms of Easement
1.Recitals and Exhibits. The above recitals, and the attached exhibits, are incorporated in and
made part of the easement agreement.
2.Grant of Easement. For good and valuable consideration, receipt of which is acknowledged
by EDA, EDA grants and conveys to the City the following easement on the Property: A perpetual,
non-exclusive easement for utility and drainage purposes over, under, across and through the
Easement Area as legally described in the attached Exhibit A.
2.Scope of Easement. The perpetual utility and drainage easement granted herein
includes the right of the City, its contractors, agents, and employees to enter the Property at all
reasonable times for the purpose of locating, constructing, reconstructing, operating,
maintaining, inspecting, altering, and repairing storm sewer, sanitary sewer and water facilities
and ground surface drainage ways in the described Easement Area. The easement granted herein
also includes the right to cut, trim, or remove from the Easement Area trees, shrubs, or other
vegetation as in the City's judgment unreasonably interfere with the easement or facilities of the
City, its successors or assigns.
3.Warranty of Title. The EDA warrants it is the owner of the Property and has the right,
title and capacity to convey to the City the easement herein.
Attachment A
4. Environmental Matters. The City shall not be responsible for any costs, expenses,
damages, demands, obligations, including penalties and reasonable attorney's fees, or losses
resulting from any claims, actions, suits, or proceedings based upon a release or threat of release
of any hazardous substances, pollutants, or contaminants which may have existed on, or which
relate to, the easement area or Property prior to the date of this instrument.
5. Binding Effect. The terms and conditions of this instrument shall run with the land and
be binding on the EDA, its successors and assigns.
Dated this 15th day of June 2021.
ECONOMIC DEVELOPMENT AUTHORITY OF THE CITY OF CRYSTAL, EDA
By: _____________________________ By: _____________________________
Its President Its Executive Director
State of Minnesota, County of Hennepin
The foregoing was acknowledged before me this _______ day of ________________ 2021,
by Olga Parsons and Anne L. Norris, the President and Executive Director of Economic
Development Authority of the City of Crystal, a public body corporate and politic under the laws
of Minnesota, on behalf of the public body corporate and politic.
NOTARIAL STAMP OR SEAL (OR OTHER TITLE OR RANK)
____________________________________
Signature of person taking acknowledgment
THIS INSTRUMENT DRAFTED BY:
City of Crystal
4141 Douglas Dr N
Crystal, MN 55422
EXHIBIT A
Legal Description of Easement Area
The westerly ten (10) feet, the northerly five (5) feet, and the easterly five (5) feet of Lot 30,
Block 3, Woodland Homes, Hennepin County, Minnesota.
Page 1 of 4
__________________________________________________________________________
FROM: John Sutter, Community Development Director
__________________________________________________________________________
DATE: June 10, 2021
TO: Anne Norris, Executive Director (for June 15 EDA meeting)
SUBJECT: Consider a resolution supporting Tax Increment Financing for a multi-
family housing project at 5240 West Broadway
Sand Companies is proposing to build an apartment building at 5240 West Broadway on a
1.75-acre site comprised of four vacant lots (5232-5256 West Broadway):
EDA STAFF REPORT
Sand Companies - 5240 West Broadway
Tax Increment Financing - Conditional Support
Page 2 of 4
Preliminary building information (subject to change as the project is refined):
58 units in a 4-story building with a basement parking garage
The units would have 1-4 bedrooms (but 70% of the units would have 2-3 bedrooms)
46 units would be affordable at 60% of area median income; 12 would be affordable at 30%
The largest source of funds would be equity from federal Low Income Housing Tax Credits
(LIHTC) which are awarded by the Minnesota Housing Finance Agency (MHFA). To be
considered for 2022 construction, Sand Companies must submit their LIHTC application to
MHFA by July 15 and the tax credit awards would be announced in late 2021.
Sand Companies estimates that the preliminary sources, uses and financing gap for this
development are as follows:
$16,456,785 Sources, including LIHTC equity but no TIF or other local assistance
$17,503,846 Uses, including $195,000 for public realm improvements along West Broadway
$ 1,047,061 Financing Gap
While preparing their application, Sand also noted that MHFA has revised its scoring to award
points for projects with local financial assistance:
Page 3 of 4
To help close the anticipated financing gap and maximize the project’s LIHTC score at MHFA,
Sand Companies is asking the EDA to adopt a resolution supporting the use of Tax Increment
Financing (TIF) for the project. The EDA’s TIF consultant, Ehlers and Associates, has
prepared a very preliminary TIF analysis, which is attached.
TAX INCREMENT FINANCING SCENARIOS
The maximum duration of a housing TIF district is 26 years. Based on other projects, Ehlers
suggests that a 15-year pay-as-you-go (“paygo”) note would be typical for this type of project,
and for comparison, staff also looked at a 10-year duration:
Summary of 15-year TIF scenario:
$795,000 paygo note (present value)
4.54% of the total project cost of $17,503,846, or just enough to get 8 MHFA points
There would still be a $252,000 gap the developer would need to fill
Summary of 10-year TIF scenario:
$550,000 paygo note (present value)
3.14% of the total project cost of $17,503,846, or just enough to get 6 MHFA points
There would still be a $497,000 gap the developer would need to fill
The main advantage to using TIF is that other agencies’ tax increment (county, etc.) would
also be used for the project.
Please note that the developer has not submitted a detailed proforma, but this would be
required when they submit a formal TIF application for staff, Ehlers and EDA review prior to
any city action to create a TIF district.
In the meantime, the developer needs to know whether they can include a proposed TIF
district in their LIHTC application to MHFA. The proposed resolution is attached. It is based on
a similar resolution from the City of Plymouth in 2018. Please note that the resolution states a
maximum TIF amount, is subject to completion of the required steps to create a TIF district,
conditioned upon the project receiving LIHTC, and not binding upon the EDA/city even if
LIHTC are awarded for the project.
TAX ABATEMENT SCENARIOS
With tax abatement, we presume that no other jurisdictions would agree to a tax abatement so
only the city’s share of additional property taxes would be abated. As with TIF, the deal
structure would be a pay-as-you-go (“paygo”) note:
Page 4 of 4
Summary of 15-year Tax Abatement scenario:
$360,000 paygo note (present value)
2.06% of the total project cost of $17,503,846, or just enough to get 4 MHFA points
There would still be a $687,061 gap the developer would need to fill
Summary of 10-year Tax Abatement scenario:
$255,000 paygo note (present value)
1.46% of the total project cost of $17,503,846, or not enough to get any MHFA points
There would still be a $792,061 gap the developer would need to fill
The main advantage to using tax abatement is that it doesn’t have an affordability requirement
(housing TIF district) or blight requirement (redevelopment TIF district). But this project would
meet the affordability requirement for a housing TIF district.
STAFF RECOMMENDATION
Staf recommends adoption of the resolution with a not-to-exceed TIF amount of $795,000 (the
15-year TIF scenario).
Reasons:
There is no advantage to using tax abatement instead of tax increment financing
TIF would be in line with similar affordable housing development projects
TIF would be less than 5% of total development cost (similar to The Cavanagh)
Support is conditional upon detailed TIF analysis and process requirements, including a
public hearing and TIF district approval by the EDA and City Council
The resolution is not binding upon the EDA or City Council
EDA ACTION REQUESTED
Adopt the attached resolution with a not-to-exceed TIF amount of $__________.
$795,000 (15-year TIF); $550,000 (10-year TIF)
Page 1 of 2
ECONOMIC DEVELOPMENT AUTHORITY OF THE CITY OF CRYSTAL
HENNEPIN COUNTY
STATE OF MINNESOTA
RESOLUTION NO. 2021-06
RESOLUTION SUPPORTING TAX INCREMENT FINANCING ASSISTANCE
FOR A MULTI-FAMILY HOUSING PROJECT AT 5240 WEST BROADWAY
WHEREAS, Sand Development, LLC (“Developer”) has proposed to build a 58 unit
multi-family housing development project with a proposed address of 5240 West
Broadway (“Project”) on a vacant site addressed as 5232-5256 West Broadway; and
WHEREAS, Developer intends to apply for Low Income Housing Tax Credit financing
(“Tax Credits”) for the Project; and
WHEREAS, the success of this application will depend, to some degree, on local
support of the project through the commitment of Tax Increment Financing.
NOW THEREFORE, BE IT RESOLVED BY THE ECONOMIC DEVELOPMENT
AUTHORITY OF THE CITY OF CRYSTAL, MINNESOTA (“EDA”):
1. The EDA supports the application for Tax Credits for a 58 unit multi-family housing
development project at 5240 West Broadway; and
2. Upon receipt of a complete Application for Public Financing from Developer,
including the application fee and escrow deposit, staff is authorized to prepare a Tax
Increment Financing Plan (“TIF Plan”) for a tax increment financing district qualified
as a housing district with a maximum of $_________ in tax increment financing
assistance, subject to the procedures under state law for the establishment of the
tax increment district and the grant of tax increment financing assistance, for
consideration by the EDA and City Council; and
3. The TIF Plan preparation authorized by this resolution shall be predicated upon the
award of Tax Credits for the Project, and if Developer has not secured an allocation
of Tax Credits for the Project by February 1, 2022, then the support for the Project
expressed by this resolution shall expire and be no longer in effect; and
Page 2 of 2
4. The adoption of this resolution does not bind the City of Crystal or its Economic
Development Authority to provide tax increment financing or other available
municipal funds for the Project.
Adopted this 15th day of June, 2021.
__________________________
Olga Parsons, President
__________________________
Anne Norris, Executive Director
5/25/2021
DistrictType:Housing
District Name/Number:
County District #:Exempt Class Rate (Exempt)0.00%
First Year Construction or Inflation on Value 2022 Commercial Industrial Preferred Class Rate (C/I Pref.)
Existing District - Specify No. Years Remaining First $150,000 1.50%
Inflation Rate - Every Year:0.00%Over $150,000 2.00%
Interest Rate:4.375%Commercial Industrial Class Rate (C/I)2.00%
Present Value Date:1-Aug-23 Rental Housing Class Rate (Rental)1.25%
First Period Ending 1-Feb-24 Affordable Rental Housing Class Rate (Aff. Rental)
Tax Year District was Certified:Pay 2021 First $174,000 0.75%
Cashflow Assumes First Tax Increment For Development:2024 Over $174,000 0.25%
Years of Tax Increment 26 Non-Homestead Residential (Non-H Res. 1 Unit)
Assumes Last Year of Tax Increment 2049 First $500,000 1.00%
Fiscal Disparities Election [Outside (A), Inside (B), or NA]Inside(B)Over $500,000 1.25%
Incremental or Total Fiscal Disparities Incremental Homestead Residential Class Rate (Hmstd. Res.)
Fiscal Disparities Contribution Ratio 31.7658%Pay 2021 First $500,000 1.00%
Fiscal Disparities Metro-Wide Tax Rate 139.5040%Pay 2021 Over $500,000 1.25%
Maximum/Frozen Local Tax Rate: 121.902%Pay 2021 Agricultural Non-Homestead 1.00%
Current Local Tax Rate: (Use lesser of Current or Max.)121.902%Pay 2021
State-wide Tax Rate (Comm./Ind. only used for total taxes)35.9780%Pay 2021
Market Value Tax Rate (Used for total taxes)0.24121%Pay 2021
Building Total Percentage Tax Year Property Current Class After
Land Market Market Of Value Used Original Original Tax Original After Conversion
Map ID PID Owner Address Market Value Value Value for District Market Value Market Value Class Tax Capacity Conversion Orig. Tax Cap.
1 09-118-21-22-0030 W. Broadway Inv.5232 W. Broadway 135,000 135,000 100%135,000 Pay 2021 C/I Pref.2,025 Aff. Rental 1,013 1
2 09-118-21-22-0031 W. Broadway Inv.5240 W. Broadway 122,000 122,000 100%122,000 Pay 2021 C/I 2,440 Aff. Rental 915 1
3 09-118-21-22-0032 Zephyr Land LLC 5248 W/ Broadway 122,000 122,000 100%122,000 Pay 2021 C/I Pref.1,830 Aff. Rental 915 1
4 09-118-21-22-0033 Zephyr Land LLC 5256 W. Broadway 116,000 116,000 100%116,000 Pay 2021 C/I 2,320 Aff. Rental 870 1
495,000 0 495,000 495,000 8,615 3,713
Area/
Phase
Tax Rates
5/25/2021
Estimated Taxable Total Taxable Property Percentage Percentage Percentage Percentage First Year
Market Value Market Value Total Market Tax Project Project Tax Completed Completed Completed Completed Full Taxes
Area/Phase New Use Per Sq. Ft./Unit Per Sq. Ft./Unit Sq. Ft./Units Value Class Tax Capacity Capacity/Unit 2022 2023 2024 2025 Payable
1 Aff Apt 195,000 195,000 58 11,310,000 Aff. Rental 78,735 1,358 25%75%100%100%2026
TOTAL 11,310,000 78,735
Subtotal Residential 58 11,310,000 78,735
Subtotal Commercial/Ind.0 0 0
Total Fiscal Local Local Fiscal State-wide Market
Tax Disparities Tax Property Disparities Property Value Total Taxes Per
New Use Capacity Tax Capacity Capacity Taxes Taxes Taxes Taxes Taxes Sq. Ft./Unit
Aff Apt 78,735 0 78,735 95,980 0 0 18,992 114,971 1,982.26
TOTAL 78,735 0 78,735 95,980 0 0 18,992 114,971
Total Property Taxes 114,971
less State-wide Taxes 0
less Fiscal Disp. Adj.0
less Market Value Taxes (18,992)
less Base Value Taxes (4,526)
Annual Gross TIF 91,454
5/25/2021 Tax Increment Cashflow - Page 3
Project Original Fiscal Captured Local Annual Semi-Annual State Admin.Semi-Annual Semi-Annual PERIOD
% of Tax Tax Disparities Tax Tax Gross Tax Gross Tax Auditor at Net Tax Present ENDING Tax Payment
OTC Capacity Capacity Incremental Capacity Rate Increment Increment 0.36%10%Increment Value Yrs.Year Date
- - - - 02/01/24
100%19,684 (3,713) - 15,971 121.902%19,469 9,735 (35) (970) 8,730 8,360 0.5 2024 08/01/24
100%19,684 (3,713) - 15,971 121.902%19,469 9,735 (35) (970) 8,730 16,541 1 2024 02/01/25
100%59,051 (3,713) - 55,339 121.902%67,459 33,730 (121) (3,361) 30,247 44,280 1.5 2025 08/01/25
100%59,051 (3,713) - 55,339 121.902%67,459 33,730 (121) (3,361) 30,247 71,426 2 2025 02/01/26
100%78,735 (3,713) - 75,023 121.902%91,454 45,727 (165) (4,556) 41,006 107,439 2.5 2026 08/01/26
100%78,735 (3,713) - 75,023 121.902%91,454 45,727 (165) (4,556) 41,006 142,681 3 2026 02/01/27
100%78,735 (3,713) - 75,023 121.902%91,454 45,727 (165) (4,556) 41,006 177,169 3.5 2027 08/01/27
100%78,735 (3,713) - 75,023 121.902%91,454 45,727 (165) (4,556) 41,006 210,919 4 2027 02/01/28
100%78,735 (3,713) - 75,023 121.902%91,454 45,727 (165) (4,556) 41,006 243,946 4.5 2028 08/01/28
100%78,735 (3,713) - 75,023 121.902%91,454 45,727 (165) (4,556) 41,006 276,266 5 2028 02/01/29
100%78,735 (3,713) - 75,023 121.902%91,454 45,727 (165) (4,556) 41,006 307,894 5.5 2029 08/01/29
100%78,735 (3,713) - 75,023 121.902%91,454 45,727 (165) (4,556) 41,006 338,845 6 2029 02/01/30
100%78,735 (3,713) - 75,023 121.902%91,454 45,727 (165) (4,556) 41,006 369,134 6.5 2030 08/01/30
100%78,735 (3,713) - 75,023 121.902%91,454 45,727 (165) (4,556) 41,006 398,774 7 2030 02/01/31
100%78,735 (3,713) - 75,023 121.902%91,454 45,727 (165) (4,556) 41,006 427,780 7.5 2031 08/01/31
100%78,735 (3,713) - 75,023 121.902%91,454 45,727 (165) (4,556) 41,006 456,165 8 2031 02/01/32
100%78,735 (3,713) - 75,023 121.902%91,454 45,727 (165) (4,556) 41,006 483,942 8.5 2032 08/01/32
100%78,735 (3,713) - 75,023 121.902%91,454 45,727 (165) (4,556) 41,006 511,125 9 2032 02/01/33
100%78,735 (3,713) - 75,023 121.902%91,454 45,727 (165) (4,556) 41,006 537,725 9.5 2033 08/01/33
100%78,735 (3,713) - 75,023 121.902%91,454 45,727 (165) (4,556) 41,006 563,757 10 2033 02/01/34
100%78,735 (3,713) - 75,023 121.902%91,454 45,727 (165) (4,556) 41,006 589,231 10.5 2034 08/01/34
100%78,735 (3,713) - 75,023 121.902%91,454 45,727 (165) (4,556) 41,006 614,159 11 2034 02/01/35
100%78,735 (3,713) - 75,023 121.902%91,454 45,727 (165) (4,556) 41,006 638,554 11.5 2035 08/01/35
100%78,735 (3,713) - 75,023 121.902%91,454 45,727 (165) (4,556) 41,006 662,427 12 2035 02/01/36
100%78,735 (3,713) - 75,023 121.902%91,454 45,727 (165) (4,556) 41,006 685,789 12.5 2036 08/01/36
100%78,735 (3,713) - 75,023 121.902%91,454 45,727 (165) (4,556) 41,006 708,651 13 2036 02/01/37
100%78,735 (3,713) - 75,023 121.902%91,454 45,727 (165) (4,556) 41,006 731,023 13.5 2037 08/01/37
100%78,735 (3,713) - 75,023 121.902%91,454 45,727 (165) (4,556) 41,006 752,916 14 2037 02/01/38
100%78,735 (3,713) - 75,023 121.902%91,454 45,727 (165) (4,556) 41,006 774,341 14.5 2038 08/01/38
100%78,735 (3,713) - 75,023 121.902%91,454 45,727 (165) (4,556) 41,006 795,307 15 2038 02/01/39
100%78,735 (3,713) - 75,023 121.902%91,454 45,727 (165) (4,556) 41,006 815,825 15.5 2039 08/01/39
100%78,735 (3,713) - 75,023 121.902%91,454 45,727 (165) (4,556) 41,006 835,903 16 2039 02/01/40
100%78,735 (3,713) - 75,023 121.902%91,454 45,727 (165) (4,556) 41,006 855,551 16.5 2040 08/01/40
100%78,735 (3,713) - 75,023 121.902%91,454 45,727 (165) (4,556) 41,006 874,779 17 2040 02/01/41
100%78,735 (3,713) - 75,023 121.902%91,454 45,727 (165) (4,556) 41,006 893,595 17.5 2041 08/01/41
100%78,735 (3,713) - 75,023 121.902%91,454 45,727 (165) (4,556) 41,006 912,008 18 2041 02/01/42
100%78,735 (3,713) - 75,023 121.902%91,454 45,727 (165) (4,556) 41,006 930,027 18.5 2042 08/01/42
100%78,735 (3,713) - 75,023 121.902%91,454 45,727 (165) (4,556) 41,006 947,660 19 2042 02/01/43
100%78,735 (3,713) - 75,023 121.902%91,454 45,727 (165) (4,556) 41,006 964,916 19.5 2043 08/01/43
100%78,735 (3,713) - 75,023 121.902%91,454 45,727 (165) (4,556) 41,006 981,803 20 2043 02/01/44
100%78,735 (3,713) - 75,023 121.902%91,454 45,727 (165) (4,556) 41,006 998,328 20.5 2044 08/01/44
100%78,735 (3,713) - 75,023 121.902%91,454 45,727 (165) (4,556) 41,006 1,014,499 21 2044 02/01/45
100%78,735 (3,713) - 75,023 121.902%91,454 45,727 (165) (4,556) 41,006 1,030,324 21.5 2045 08/01/45
100%78,735 (3,713) - 75,023 121.902%91,454 45,727 (165) (4,556) 41,006 1,045,811 22 2045 02/01/46
100%78,735 (3,713) - 75,023 121.902%91,454 45,727 (165) (4,556) 41,006 1,060,965 22.5 2046 08/01/46
100%78,735 (3,713) - 75,023 121.902%91,454 45,727 (165) (4,556) 41,006 1,075,796 23 2046 02/01/47
100%78,735 (3,713) - 75,023 121.902%91,454 45,727 (165) (4,556) 41,006 1,090,309 23.5 2047 08/01/47
100%78,735 (3,713) - 75,023 121.902%91,454 45,727 (165) (4,556) 41,006 1,104,511 24 2047 02/01/48
100%78,735 (3,713) - 75,023 121.902%91,454 45,727 (165) (4,556) 41,006 1,118,409 24.5 2048 08/01/48
100%78,735 (3,713) - 75,023 121.902%91,454 45,727 (165) (4,556) 41,006 1,132,010 25 2048 02/01/49
100%78,735 (3,713) - 75,023 121.902%91,454 45,727 (165) (4,556) 41,006 1,145,320 25.5 2049 08/01/49
100%78,735 (3,713) - 75,023 121.902%91,454 45,727 (165) (4,556) 41,006 1,158,344 26 2049 02/01/50
Total 2,281,823 (8,215) (227,361) 2,046,247
Present Value From 08/01/2023 Present Value Rate 4.38%1,291,699 (4,650) (128,705) 1,158,344
Prepared by Ehlers & Associates, Inc. - Estimates Only N:\Minnsota\Crystal\Housing - Economic - Redevelopment\Pending Projects\Sands Company 2021\TIF Run 5-25-21