2021.08.05 Work Session Packet
4141 Douglas Drive North • Crystal, Minnesota 55422-1696
Tel: (763) 531-1000 • Fax: (763) 531-1188 • www.crystalmn.gov
Posted: July 30, 2021
City Council Work Session Agenda
Thursday, August 5, 2021 at 6:30 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 Thursday, August 5, 2021 at
______ p.m. in the Council Chambers at City Hall, 4141 Douglas Drive North, Crystal,
Minnesota. The public may attend the meeting via Zoom by connecting to it through one of the
methods identified on the Notice of August 5, 2021 Work Session.
I. Attendance
Council members Staff
____ LaRoche ____ Norris
____ Parsons ____ Therres
____ Adams ____ Elholm
____ Banks ____ Larson
____ Budziszewski ____ McGann
____ Cummings ____ Ray
____ Kiser ____ Revering
____ Sutter
____ Serres
II. Agenda
The purpose of the work session is to discuss the following agenda items:
1. Capital planning.
2. Review 2022 West Metro Fire-Rescue District budget.
III. Adjournment
The work session adjourned at ______ p.m.
Auxiliary aids are available upon request to individuals with disabilities by calling the City Clerk at (763)
531-1145 at least 96 hours in advance. TTY users may call Minnesota Relay at 711 or 1-800-627-3529.
4141 Douglas Drive North • Crystal, Minnesota 55422-1696
Tel: (763) 531-1000 • Fax: (763) 531-1188 • www.crystalmn.gov
Posted: July 30, 2021
CITY COUNCIL WORK SESSION
NOTICE OF AUGUST 5, 2021 WORK SESSION
NOTICE IS HEREBY GIVEN that the City Council of the City of Crystal will hold a work session on
Thursday, August 5, 2021 at 6:30 p.m. at Crystal City Hall, 4141 Douglas Drive North, Crystal,
Minnesota.
The public may attend the meeting via Zoom by connecting to it through one of the methods
identified below.
Topic: Crystal City Council Work Session
Time: August 5, 2021 06:30 PM Central Time (US and Canada)
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August 5, 2021
2022 Proposed budget review
Property tax alternatives
Alternative for 20-year planning for
parks and streets
Property taxes reduced from 6.1% increase to 4.3%
increase
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
Utility rates consistent with 2018 rate study
2021
Adopted
2021 %
Change
2022
Accepted
2022
Increase
(Decrease)
2022 %
Change
2022
Proposed
2022
Increase
(Decrease)
2022 %
Change
General levy 12,084,489$ 19.14 %12,740,995$ 656,506$ 5.43 %12,508,518$ 424,029$ 3.51 %
Capital improvements
Police Equipment Revolving 158,037 2.00 161,197 3,160 2.00 158,037 - (2.00)
Park Improvement 480,511 33.88 606,999 126,488 26.32 606,999 126,488 26.32
Street Construction 114,550 4.00 119,132 4,582 4.00 119,132 4,582 4.00
Total Capital Improvements 753,098 -61.20 887,328 134,230 17.82 884,168 131,070 17.40
EDA 300,000 6.10 310,000 10,000 3.33 310,000 - 0.00
Total levy 13,137,587$ 6.23 %13,938,323$ 800,736$ 6.10 %13,702,686$ 565,099$ 4.30 %
% Increase from prior year
Capital Project Funds 2022
Police Equipment Revolving 158,037$
Park Improvement 606,999
Street Construction 119,132
Internal Service Funds
Information Technology 437,123
Buildings 1,082,603
Fleet 337,956
Total 2,741,850$
Capital Levies
Capital needs represent 20% of total 2022 levy
2019 2020 2021 2022 2022
Actual Amended Adopted Accepted Proposed
REVENUES
Property taxes - operations 9,743,618$ 10,218,522$ 10,768,994$ 11,378,421$ 11,176,520$
Special assessments and other 70,500 52,000 52,000 52,000
Property taxes - Internal allocations 1,317,154 1,362,495 1,409,574 1,409,574
Licenses and permits 835,711 853,810 896,860 850,960 850,960
Intergovernmental revenues 1,907,764 1,787,339 1,777,489 1,777,489 1,777,489
Charges for services 811,940 891,402 846,711 863,853 863,853
Fines & forfeits 287,985 307,000 275,000 275,000 275,000
Investment income 116,464 94,512 125,000 125,000 125,000
Miscellaneous 69,675 82,683 68,000 68,000 68,000
Other - interfund services transfers in 458,861 474,258 479,502 505,185 505,185
TOTAL REVENUES 14,232,018 16,097,180 16,652,051 17,305,482 17,103,581
EXPENDITURES
General Government 2,227,790$ 2,239,738$ 2,267,228$ 2,329,399$ 2,353,191$
Public safety 7,335,302 8,194,542 8,417,237 8,806,887 8,515,725
Community Development 557,867 721,723 707,745 737,197 742,832
Public works 2,402,399 2,867,494 3,071,311 3,177,913 3,239,982
Recreation 1,678,233 2,073,683 2,188,530 2,254,086 2,251,851
TOTAL EXPENDITURES 14,201,591$ 16,097,180$ 16,652,051$ 17,305,482$ 17,103,581$
Major Expenditure Changes 2021 Adopted 2022 Accepted 2022 Proposed
554,871$ 653,431$ (201,901)$
Wages and Benefits 338,301$ 455,811 (267,026)
Human Resources - prof. services and service contracts 9,475 - -
Assessing - County Assessor contract increase 26,000 7,000 -
Finance - professional services 10,000 5,000 -
Police - K9 Overtime 7,100 - -
Police - Mental Health 35,000 - -
Police - Legal services - 5,000 -
Police - neighborhood outreach - - (250)
Elections (includes wages and benefits)(112,596) 5,000 -
Community Center - biennial refinishing of gym floor - 6,400 -
Engineering - - 822
Streets - salt (7,000) - -
Streets - contractual services and city utility charges - - 5,939
Parks - - 58,614
Utility reallocation, dues, miscellaneous and inflation 190,341 116,353 -
West Metro Fire District 58,250 52,867 -
554,871$ 653,431$ (201,901)$
Option 1: Increase 2022 property tax levy
by 1% for Streets
Option 2: Increase 2022 property tax levy
by .5% in 2022 and an additional .5% in
2023 so there will be 1% dedicated to
streets
Option 1 Increase
$8,207,169
Option 2 Increase
$7,324,687
Assumptions
1% Overall levy increase to Parks through 2028
In 2029 Parks levy remains at 2028 levy amount
1% Overall levy increase goes to Streets in 2029
Parks
2033 –2039 Estimate of $1.5M capital annually
2039 Estimated cash $453,935
Streets
1% overall levy increase starting in 2029
2030 –2039 Estimate of $1.7M capital annually
2039 Estimated cash $2,852,329
West Metro Fire
PROPOSED 2022 BUDGET
West Metro Fire Proposed 2022 Budget
2022 Preliminary Budgets and Contributions
2022 2021
General Operating Budget $2,208,500 $ 2,120,450
Capital Fund Contribution $250,000 $ 230,000
Special Revenue Pension Fund Contribution $200,000 $180,000
Special Revenue Insurance Fund Contribution $10,000 $ 30,000
Special Revenue Compensated Absences Fund Contribution $10,000 $10,000
Tower Lease $103,600 $103,600
Total $2,782,100 $2,674,050
West Metro Fire Proposed 2022 Budget
Proposed increase to the cities’ contributions is $108,050 over the 2021 contributions or 4.04%.
This is an increase of $42,190.92 or 3.2% for Crystal and an increase of $65,859.08 or 4.9% for New Hope.
The general operating budget increase is $88,050 or 4.15%. The driving force of this increase is salaries, PERA, workers comp insurance, health insurance and communications.
This includes a planned $20,000 increase to the capital plan contributions that offsets a deficit from occurring. With a $20,000increase per year through 2022 the capital plan is fully funded.
This includes a $20,000 increase to the special pension fund. The total pension liability in 2022 is potentially $518, 404.17. The state aid contributed in 2020 was $263,162. If this stays the same it will leave a potential balance due of $255,242.17. The $20,000 increase is needed to maintain the fund balance in this account.
There is a $20,000 decrease to the special revenue insurance fund.
((a/A) + (p/P) + (v/V) / 3) x 100 = Percentage of total budget due from specified municipality
Crystal New Hope District
a = municipality's avg. calls over 5 years 782 920
p = municipality's population (2010 census)22,151 20,339
v = municipality's taxable market value in millions 2,123 2,106
A = district's avg. calls over 5 years no mutual aid 1,702
P = district's population (2010 census)42,490
V = district's taxable market value in millions 4,229
Percentage a/A 45.9459%54.0541%
Percentage p/P 52.1323%47.8677%
Percentage v/V 50.2010%49.7990%
49.4264%50.5736%100.00%
100.0000%
Required contributions from cities $1,321,686.70 $1,352,363.30 $2,674,050.00
Monthly contribution $110,140.56 $112,696.94
(1) Average calls based on calls for the years 2015 through 2019 without mutual aid.
(2) 2020 taxable market values from Hennepin County report dated 09/06/2019.
Contributions from Cities Set to Equal:
2021 General Fund Operating Budget $2,120,450
2021 Capital Plan Budget $230,000
2021 Pension Special Revenue Fund $180,000
2021 Insurance Special Revenue Fund $30,000
2021 Compensated Absences Special Revenue Fund $10,000
2021 Aerial Lease $103,600
2021 Total Amount to be Contributed from Cities $2,674,050
WEST METRO FIRE RESCUE DISTRICT
Cost Sharing Formula
Preliminary Calculation in 2020 for use in the 2021 Budget
((a/A) + (p/P) + (v/V) / 3) x 100 = Percentage of total budget due from specified municipality
Crystal New Hope District
a = municipality's avg. calls over 5 years 803 965
p = municipality's population (2010 census)22,151 20,339
v = municipality's taxable market value in millions 2,214 2,257
A = district's avg. calls over 5 years no mutual aid 1,768
P = district's population (2010 census)42,490
V = district's taxable market value in millions 4,471
Percentage a/A 45.4186%54.5814%
Percentage p/P 52.1323%47.8677%
Percentage v/V 49.5191%50.4809%
49.0233%50.9767%100.00%
100.0000%
Required contributions from cities $1,363,877.62 $1,418,222.38 $2,782,100.00
Monthly contribution $113,656.47 $118,185.20
(1) Average calls based on calls for the years 2016 through 2020 without mutual aid.
(2) 2021 taxable market values from Hennepin County report dated 01/05/2021
Contributions from Cities Set to Equal:
2021 General Fund Operating Budget $2,208,500
2021 Capital Plan Budget $250,000
2021 Pension Special Revenue Fund $200,000
2021 Insurance Special Revenue Fund $10,000
2021 Compensated Absences Special Revenue Fund $10,000
2021 Aerial Lease $103,600
2021 Total Amount to be Contributed from Cities $2,782,100
WEST METRO FIRE RESCUE DISTRICT
Cost Sharing Formula
Initial Preliminary Calculation in 2021 for use in the 2022 Budget