2022.05.17 Work Session Packet
4141 Douglas Drive North • Crystal, Minnesota 55422-1696
Tel: (763) 531-1000 • Fax: (763) 531-1188 • www.crystalmn.gov
Posted: May 13, 2022
City Council Work Session Agenda
Tuesday, May 17, 2022 at 6 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, May 17, 2022 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 work
session will be continued and resumed immediately following the Economic Development
Authority meeting. The public may attend the meeting via Zoom by connecting to it through
one of the methods identified on the City Council Meeting Schedule for Tuesday, May 17, 2022.
I. Attendance
Council members Staff
____ Cummings ____ Norris ____ Sutter
____ Kiser ____ Therres ____ Serres
____ LaRoche ____ Gilchrist
____ Parsons ____ Elholm
____ Adams ____ Larson
____ Banks ____ Ray
____ Budziszewski ____ Revering
II. Agenda
The purpose of the work session is to discuss the following agenda items:
1. 2023 budget preview.
2. Quarterly West Metro Fire-Rescue District update.
3. Crystal Aquatic Center pool survey results (6:40 p.m.).
4. Continue discussion of Inclusion and Diversity Commission.
5. City manager monthly check-in.
6. Constituent issues update.
7. New business. *
8. 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.
Memorandum
DATE: May 17, 2022
TO: Mayor and City Council
Anne Norris, City Manager
FROM: Jean McGann, Abdo Financial Solutions
Jodi Bursheim, Abdo Financial Solutions
SUBJECT: 2023-2024 Budget Preview
Background
The City Council will officially kick-off the 2023-2024 budget on May 17, 2022. The purpose of this meeting is to provide a
budget preview for 2023 – 2024.
Staff has some known factors to consider and other areas where we are looking for Council guidance and direction. As
we walk through the information contained in the presentation, we want to be clear that all information presented will
conform to the following guidelines:
Continuation of two-year budgeting
Provide talking points to frame the message
Information will be simple and straight forward
An inflationary factor will be included in capital funds
Packet materials will provide for a hard copy of the material presented
As presented in previous years, we will begin the presentation with a short overview of the budget fundamentals which will
provide a refresher as we embark on the beginning of this budget process.
The attached presentation provides an overview for the budget discussion.
Attachment
Presentation
May 17, 2021
Budget Fundamentals
Budget Timeline
Council Goals
What we know
Council Comments and/or Questions
Create 2-year budget
Maintain current core services
Focus on the future with increased
investment in capital
Have Budget Goals
To keep track of separate business functions within
one larger organization
Resembles a parent/subsidiary relationship
in the corporate world
Overview of Fund Accounting
Governmental Funds
Include:
General fund
Special revenue funds
Debt service funds
Capital project funds
Financed mostly by taxes/assessments
Modified accrual basis of accounting
(i.e. when earned/spent AND when available)
No capital assets or debt liabilities recorded
Proprietary Funds
Include:
Enterprise Funds (Utilities)
Internal Service Funds (Fleet, IT, City
Buildings, Self-Insurance)
Financed primarily from user fees and operate
similar to private business
Full accrual basis of accounting
(i.e. when earned/spent)
Capital assets and debt liabilities ARE recorded
Fiduciary Funds
Include:
Trust Funds
Agency Funds
Monies held on behalf of another party
Full accrual basis of accounting
100s
General
Fund
Considered
the operating
budget
Primarily
supported by
property
taxes
City Funds
200s
Special
Revenue
Funds
Must be used
for specific
purposes
Revenue is
specific to the
cause
300s 400s
Capital
Project
Funds
The guiding plan
is the City’s long-
term plan (which
incorporates the
multi-year capital
improvement plan)
Debt
Service
Funds
Used to pay
principal &
interest on
governmental
funds
600s
Enterprise
(Utility)
Funds
Revenue to
support both
operational
and capital
costs
Operating Budgets
For the General Fund and Special Funds Consider the
Following
•Property taxes
•State Aid
•Grants
•Permits
•Licenses
•Interest
Revenue:
•Wages/Benefits
•Service levels
(new programs
or services)
•Fixed & variable
costs
Expenditures:
•Revenue
restrictions
•Grant requirements
•Union contracts
•Legislative changes
•General economy
Property Taxes:
Operating Budgets
For the Enterprise (Utility) Funds Consider the Following
•User fees
•Grants
Revenue:
•Wages/Benefits
•OM & R
(operations,
maintenance &
replacement)
•Debt service
•Fixed & variable
costs
•Capital
Expenditures:
•User fees as
opposed to tax
levy
•Rate adjustments
to fund operations
and infrastructure
•Cash or accrual
method?
Adjustments
:
100s General Fund Levy
200s Economic DevelopmentAuthority (EDA) Levy
300s Debt Service Levies
400s Capital Levies
= Property Tax Levy
+
+
+
600s Enterprise (Utility)
Funds
= User Fees
May 17, 2022 Council Preview of Budget -Timeline and Known Factors
August 4, 2022 Council work session (budgeted funds, capital & fee schedule)
August 18, 2022 Council work session for additional review (if needed)
September 6, 2022 Council to consider preliminary budget and levies
October 4, 2022 Public input meeting
October/November Additional work sessions as needed
December 6, 2022 Council to consider final budget and levies
Create a thriving business climate.
Develop fiscally sound financial policies and
practices; communicate policies to community.
Create Strong Neighborhoods
Build inclusive community so all feel welcome
Health insurance –estimated at 13% increase (cost is shared
between City and employee)
West Metro –increase request of $115,000
Worker compensation and insurance premiums increases
Cost of Living (COLA) will be higher than in past years
Fuel increases –Diesel 50%, Regular 27%
Union contracts open
Police staffing increase request of $200,000
Police grants applied for –possibly cover one person in staffing
–anticipated for 2024
….. continued
•Utilities staffing increase in 2024 –one person for meter
replacements
•Three Elections in 2024
•Market value shift in Crystal residential properties
•Capital levy increases as planned
•Utility rate increases as indicated in 2018 rate study
•Updated Utility rate study underway
Fund Percent Description
Street Capital Fund 1%Levy increase based on total levy
Police Equipment Revolving Fund
(PERF)
2%Levy increase based on prior year PERF Levy
Park Improvement Fund 1%Levy increase based on total levy
Building Fund 4%Levy increase based on prior year Building Levy
Fleet 1%Levy increase based on prior year Fleet Levy
Information technology 1%Levy increase based on prior year Information
Technology Levy
Water Rate 7%Based on 2018 Utility Rate Study (rate study underway)
Sewer Rate 7%Based on 2018 Utility Rate Study (rate study underway)
Storm Drainage $1.00 Per Quarter increase (rate study underway)
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 – MAY 2022
Objective 1 – Strategic planning for continued implementation of Council
priorities:
o Thriving Business Community
▪ Open To Business assistance available
▪ Community Development staff a resource for local business
community
▪ Several businesses opening or expanding; Community
Development staff continuing to meet with developers regarding
redevelopment opportunities where vacant or underutilized
buildings are
o Strong Neighborhoods
▪ Code enforcement – on-going
▪ Continued implementation of Master Parks System Plan
improvements – grants for pickleball courts at Becker Park and
soccer field at FAIR, working in other park improvements
▪ Home improvement loans/rebates available through CEE- on-
going
o Sound fiscal policies and practices
▪ Long term financial planning on-going
▪ Work on 2023-2024 budget in progress; overview with Council
5/17
o Welcoming and inclusive community
▪ Council doing final review of language establishing inclusion
and diversity commission on 5/17
Objective 2 – Work-life balance
o Connecting with neighboring city managers (and meeting incoming city
managers)
o Participate in metro and state professional organization to stay current
with trends – attended State conference May 4 - 6
o Continue participation in peer group to hone professional skills
(monthly meetings)
Objective 3 – Monitor difficult conversations regarding Council effectiveness
o Council continues discussions regarding inclusion/diversity
commission