2023.06.06 Council Meeting Packet
4141 Douglas Drive North • Crystal, Minnesota 55422-1696
Tel: (763) 531-1000 • Fax: (763) 531-1188 • www.crystalmn.gov
Posted: June 2, 2023
City Council Meeting Schedule
Tuesday, June 6, 2023
Time Meeting Location
6:40 p.m.
City Council work session to discuss:
1. Proposed Geographic Information System (GIS) software.
2. Constituent issues.
3. New business.
4. Announcements.
Council Chambers/
Zoom
7 p.m. City Council meeting Council Chambers/
Zoom
Immediately
following the City
Council meeting
Continuation of City Council work session, if necessary Council Chambers/
Zoom
The public may attend the meetings via Zoom by connecting through one of the methods identified below.
Topic: Crystal City Council work session, City Council meeting and continuation of City Council work session,
if necessary.
Time: June 6, 2023 at 6:40 p.m. 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 2, 2023
City Council Work Session Agenda
Tuesday, June 6, 2023, at 6:40 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 6, 2023, at ______ p.m. in
the Council Chambers at City Hall, 4141 Douglas Dr. N., Crystal, MN and via Zoom. 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 City Council 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, June 6, 2023.
I. Attendance
Council members Staff
____ Kamish ____ Bell
____ Kiser ____ Gilchrist
____ Onesirosan ____ Therres
____ Adams ____ Elholm
____ Budziszewski ____ Larson
____ Cummings ____ Ray
____ Eidbo ____ Revering
____ Sutter
____ Serres
II. Agenda
The purpose of the work session is to discuss the following agenda items:
1. Proposed Geographic Information System (GIS) software.*
2. Constituent issues.*
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.
Page 1 of 3
4141 Douglas Drive North • Crystal, Minnesota 55422-1696
Tel: (763) 531-1000 • Fax: (763) 531-1188 • www.crystalmn.gov
Posted: June 2, 2023
City Council Meeting Agenda
Tuesday, June 6, 2023
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. Proclamations
3.1 The Mayor will proclaim June 14, 2023, as Flag Day in the City of Crystal.
3.2 The Mayor will proclaim June 19, 2023, as Juneteenth Freedom Day in the City of Crystal.
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 May 11, 2023.
b. The City Council work session on May 16, 2023.
c. The City Council meeting on May 16, 2023.
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 Adoption of a resolution accepting donations.
4.4 Adoption of a resolution reporting on state performance measures.
4.5 Approval of the following items for 2023 Crystal Frolics:
a. Temporary closure of portions of 46th Ave. N. and 47th Ave. N. from July 27 – 30, 2023,
for city and volunteer staff vehicle parking, fireworks displays, and waterball competition
hosted by the West Metro Fire-Rescue Relief Association.
b. A permit for fireworks displays at Welcome Park on July 28 and 29, 2023, submitted by
Hollywood Pyrotechnics, Inc.
Page 2 of 3
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 10 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 on-sale liquor license for Tequilatown, LLC d/b/a Tequilatown Authentic
Mexican Cuisine and Bar located at 99 Willow Bend.
The owners of Tequilatown, LLC, have submitted a new on-sale liquor license application,
including Sunday on-sale, for a restaurant/bar located in Crystal Shopping Center. The
property use complies with zoning requirements, the application materials are in order,
and a background check was completed. After taking public comment, staff recommends
approval of the new on-sale liquor and Sunday licenses for Tequilatown, LLC d/b/a
Tequilatown Authentic Mexican Cuisine and Bar located at 99 Willow Bend.
7. Regular Agenda
7.1 The Council will consider approval of disbursements over $25,000 submitted by the finance
department to the City Council, a list that is on file in the office of the finance department.
Recommend approval of disbursements over $25,000.
7.2 The Council will receive the 2022 annual financial report from Bergan KDV.
Representatives of Bergan KDV will present the 2022 annual financial report. After hearing
the presentation, the Council should accept the 2022 annual financial report.
7.3 The Council will continue discussion of a resolution authorizing the agreement with LOGIS for
Geographic Information System (GIS) support.
At the May 16th Council meeting, the Council discussed the proposed contract with LOGIS
GIS for GIS support services. The Council continued the item to a future meeting so more
information could be provided and the proposal could be reviewed by the City’s new GIS
Specialist, Emily Schneider. Emily will be at the June 6 Council work session and meeting to
provide additional background and information on the proposed contract with LOGIS GIS.
After considering the suggestion of splitting the various GIS-related services, such as data
storage, staff believes it is more beneficial to use LOGIS for all the GIS services. Staff
recommends approval.
8. Announcements
a. There will be a ribbon cutting at 10 a.m. on Thursday, June 15 to celebrate the opening of the
new Crystal Vision Clinic at 5730 Bottineau Blvd.
b. The Crystal Airport Open House is Sunday, June 18 from 8 a.m. – 3 p.m. at Crystal Airport.
c. City offices will be closed Monday, June 19 in observance of the Juneteenth holiday.
Page 3 of 3
d. The next City Council meeting is Tuesday, June 20 at 7 p.m. in the Council Chambers at City
Hall and via Zoom.
e. There will be a ribbon cutting at 4 p.m. on Thursday, June 22 to celebrate the opening of
Odam Medical at 6014 Lakeland Ave. N.
f. There will be a community open house about the Bass Lake Road Station Area Plan Update
from 5-7 p.m. on Thursday, June 22 at the Crystal Community Center
g. 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. See you at Tuesday’s meeting.
3.1
4141 Douglas Drive North • Crystal, Minnesota 55422-1696
Tel: (763) 531-1000 • Fax: (763) 531-1188 •
PROCLAMATION
RECOGNIZING FLAG DAY 2023
WHEREAS, on June 14, 1777, the Second Continental Congress passed a
resolution calling for the design of our nation’s flag and christening our flag’s iconic
stripes, stars, and field of blue; and
WHEREAS, on May 30, 1916, President Woodrow Wilson issued a proclamation
suggesting and requesting that “throughout the nation and if possible, in every
community, the fourteenth day of June be observed as Flag Day with special patriotic
exercises;” and
WHEREAS, on August 3, 1949, Congress approved the national observance of
Flag Day, and President Harry Truman signed it into law; and
WHEREAS, we celebrate Flag Day across the United States on June 14 each
year to honor the United States flag and to commemorate the flag’s adoption. This is a
day set aside for Americans and Crystal residents to reflect on the foundations of the
nation’s freedom; and
WHEREAS, while the American flag has gone through many changes over the
centuries, has seen many battles, and has earned many tears, scars, and tatters, it
remains a symbol of hope and an enduring symbol of the country’s ideals since its
early days; and
WHEREAS, the flag of the United States represents freedom, and when we
honor our flag, we honor what we stand for as a Nation and a community – freedom,
equality, justice, and hope.
NOW, THEREFORE, I, Jim Adams, Mayor of the City of Crystal, do hereby
proclaim that June 14, 2023, is recognized as Flag Day, and I encourage the residents
of Crystal to honor this day by proudly displaying the American flag at their homes and
businesses and rededicating themselves to the ideals for which the flag stands.
Dated this 6th day of June 2023.
Jim Adams, Mayor
3.2
4141 Douglas Drive North • Crystal, Minnesota 55422-1696
Tel: (763) 531-1000 • Fax: (763) 531-1188 •
PROCLAMATION
RECOGNIZING JUNETEENTH 2023
WHEREAS, a priority of the Crystal City Council is making Crystal a welcoming
and inclusive community; and
WHEREAS, 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
including 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, Juneteenth became a federal holiday on June 17, 2021, and in
2023, Minnesota’s 93rd Legislature formally established Juneteenth as a state-
recognized holiday; and
WHEREAS, our African-American residents’ freedom, contributions, and
achievements are acknowledged as part of our American history.
NOW, THEREFORE, I, Jim Adams, Mayor of the City of Crystal, do hereby
proclaim that June 19, 2023, is recognized as Juneteenth Freedom Day in Crystal; and
the history, contributions, and achievements of African-Americans in Crystal and the US
are recognized.
Dated this 6th day of June 2023.
Jim Adams, Mayor
Crystal City Council work session minutes May 11, 2023
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 6:37 p.m. on May 11, 2023 in the Council Chambers
at City Hall, 4141 Douglas Dr. N., Crystal, MN and via Zoom. Mayor Adams called the meeting to order.
I.Attendance
The city manager recorded the attendance for city council members and staff:
Council members present: Cummings, Kamish, Kiser, Onesirosan, Adams and Budziszewski (arrived
at 6:43 p.m.). Council Member Eidbo observed the meeting remotely via Zoom from Rua Santo
Antonio, 34, Porto Seguro, Bahia 45810-000, Brazil, within the open air lounge.
City staff present: City Manager A. Bell and Community Development Director J. Sutter.
Police Chief S. Revering was present via Zoom.
Also present were representatives: Rachel Blaseg from Damon Farber, Jon Commers of Visible City
and Dan Soler from Hennepin County.
II.Agenda
The Council and staff discussed the following agenda item s:
1.Bass Lake Road Station Area Plan update.
2.Blue Line Extension Anti-Displacement Working Group update.
3.Blue Line Extension project update.
III.Adjournment
The work session adjourned at 8:23 p.m.
Jim Adams, Mayor
ATTEST:
Adam R. Bell, City Manager
4.1(a)
Crystal City Council work session minutes May 16, 2023
Pursuant to due call and notice given in the manner prescribed by Section 3.01 of the City Charter, the
work session of the Crystal City Council was held at 6:15 p.m. on May 16, 2023 in the Council Chambers
at City Hall, 4141 Douglas Dr. N., Crystal, MN and via Zoom. Mayor Adams called the meeting to order.
I.Attendance
The city clerk recorded the attendance for city council members and staff:
Council members present: Eidbo, Kamish, Kiser, Onesirosan, Adams, Budziszewski and Cummings.
City staff present: City Manager A. Bell, City Attorney T. Gilchrist, Assistant Finance Director J.
Bursheim, West Metro Fire-Rescue District Chief S. Larson, Public Works Director M. Ray, Police
Chief S. Revering, Deputy Police Chief B. Hubbard, Community Development Director J. Sutter and
City Clerk C. Serres. Assistant City Manager K. Therres was present via Zoom.
II.Agenda
The Council and staff discussed the following agenda items:
1.Compliance check overview.
2.Police Department quarterly update (2022 Annual Report).
Mayor Adams continued the work session to resume immediately after the City Council meeting.
Mayor Adams reconvened the work session at 8:13 p.m. to continue discussion of the Police
Department 2022 Annual Report and the following remaining agenda items:
3.West Metro Fire-Rescue District (WMFRD) quarterly update.
4.2024 WMFRD proposed budget.
5.2024 budget preview.
6.Council liaison reports.
7.Constituent issues.
8.City manager monthly check-in.
9.New business.
10.Announcements.
III.Adjournment
The work session adjourned at 9:46 p.m.
Jim Adams, Mayor
ATTEST:
Christina Serres, City Clerk
4.1(b)
Crystal City Council meeting minutes May 16, 2023
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
May 16, 2023, at 7:01 p.m. in the Council Chambers at City Hall, 4141 Douglas Dr. N. in Crystal, MN
and via Zoom. 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: Eidbo, Kamish, Kiser, Onesirosan, Adams, Budziszewski and Cummings.
City staff present: City Manager A. Bell, City Attorney T. Gilchrist, Assistant Finance Director J.
Bursheim, West Metro Fire-Rescue District Chief S. Larson, Public Works Director M. Ray, Police
Chief S. Revering, Deputy Police Chief B. Hubbard, Community Development Director J. Sutter and
City Clerk C. Serres. Assistant City Manager K. Therres was present via Zoom.
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 Budziszewski and seconded by Council Member Kiser to approve the
agenda.
Motion carried.
3.Consent Agenda
The Council considered the following items, which are routine and non-controversial in nature, in a
single motion:
3.1 Approval of the minutes from the following meetings:
a.The City Council meeting on May 2, 2023.
b.The City Council work session on May 2, 2023.
3.2 Approval of the list of license applications submitted by the city clerk to the City Council, a
list that is on file in the office of the city clerk.
3.3 Adoption of Res. No. 2023-54, accepting donations.
3.4 Adoption of a resolution recognizing June as Pride Month.
3.5 Adoption of Res. No. 2023 – 56 and Res. No. 2023 – 57 reaffirming land exchange with the
Metropolitan Airports Commission.
Moved by Council Member Eidbo and seconded by Council Member Onesirosan to approve,
but remove item 3.4 from the consent agenda to the beginning of the regular agenda.
Motion carried.
4.Open Forum
No public comment was given during open forum.
4.1(c)
Crystal City Council meeting minutes May 16, 2023
Page 2 of 4
5. Regular Agenda
The Council considered a resolution recognizing June as Pride Month (Consent Agenda item 3.4).
Moved by Council Member Edibo and seconded by Council Member Kiser to amend the resolution
by adding the following language to the end of the fourth paragraph: and celebrate their important
contributions.
Voting aye: Eidbo, Kamish, Kiser, Onesirosan, Adams, Budziszewski and Cummings.
Motion carried to amend the resolution.
Council Member Budziszewski read the amended resolution into the record.
Moved by Council Member Kiser and seconded by Council Member Budziszewski to adopt the
following amended resolution:
RESOLUTION NO. 2023 – 55
RESOLUTION RECOGNIZING JUNE AS PRIDE MONTH
Voting aye: Eidbo, Kamish, Kiser, Onesirosan, Adams, Budziszewski and Cummings.
Motion carried, resolution declared adopted.
5.1 The Council considered approval of disbursements over $25,000 submitted by the finance
department to the City Council, a list that is on file in the office of the finance department.
Moved by Council Member Kiser and seconded by Council Member Cummings to approve the
list of disbursements over $25,000.
Voting aye: Eidbo, Kamish, Kiser, Onesirosan, Adams, Budziszewski and Cummings.
Motion carried.
5.2 The Council considered civil penalties for violation of tobacco license regulations by Main
Grocery and Tobacco, Inc. d/b/a Mini Grocery and Tobacco located at 2708 Douglas Dr. N.
City Clerk Chrissy Serres provided the staff report to the Council and answered questions.
Attorney Courtney Ernston, on behalf of Mini Grocery and Tobacco, provided testimony to the
Council regarding the violation. City Attorney Troy Gilchrist also provided testimony to the
Council and answered questions.
There being no one else wishing to appear before the Council to give testimony, Mayor Adams
closed the public comment period.
Moved by Council Member Budziszewski and seconded by Council Member Eidbo to impose a
penalty of $1,500 and a five-day license suspension in this case; based on the staff report,
including the findings contained therein and other information presented regarding this matter.
4.1(c)
Crystal City Council meeting minutes May 16, 2023
Page 3 of 4
By roll call and voting aye: Eidbo, Onesirosan and Budziszewski.
Voting nay: Cummings, Kamish, Kiser and Adams.
Motion failed.
Council Member Kiser made a motion to impose a penalty of $2,000 and no license suspension
in this case.
Motion failed for lack of a second.
Moved by Council Member Cummings and seconded by Council Member Kamish to impose a
penalty of $1,500 and a three-day license suspension in this case; based on the staff report,
including the findings contained therein and other information presented regarding this matter.
By roll call and voting aye: Kamish, Kiser, Adams and Cummings.
Voting nay: Eidbo, Onesirosan, Budziszewski.
Motion carried.
5.3 The Council considered the second reading of an ordinance amending City Code Section 425
regarding rental licensing of state-licensed facilities.
Community Development Director John Sutter addressed the Council.
Moved by Council Member Budziszewski and seconded by Council Member Eidbo to adopt the
following ordinance:
ORDINANCE 2023 – 02
AN ORDINANCE AMENDING THE CRYSTAL CITY CODE
REGARDING THE LICENSING OF RENTAL UNITS
And further, that this is the second and final reading.
Voting aye: Eidbo, Kamish, Kiser, Onesirosan, Adams, Budziszewski and Cummings.
Motion carried.
5.4 The Council considered a resolution authorizing the agreement with LOGIS for Geographic
Information System support.
Public Works Director Mark Ray addressed the Council.
Moved by Council Member Eidbo and seconded by Council Member Budziszewski to continue
discussion of this item to the June 6, 2023, council meeting.
Voting aye: Eidbo, Kamish, Kiser, Onesirosan, Adams, Budziszewski and Cummings.
Motion carried.
4.1(c)
Crystal City Council meeting minutes May 16, 2023
Page 4 of 4
5.5 The Council considered a resolution authorizing the agreement with Minger Construction
Company, Inc. for a stormwater project.
Public Works Director Mark Ray addressed the Council.
Moved by Council Member Budziszewski and seconded by Council Member Cummings to adopt
the following resolution:
RESOLUTION NO. 2023 – 58
AUTHORIZING THE CONTRACT FOR THE 2023 STORM WATER PROJECT
Voting aye: Eidbo, Kamish, Kiser, Onesirosan, Adams, Budziszewski and Cummings.
Motion carried, resolution declared adopted.
6. Announcements
The Council and staff made announcements about upcoming events.
7. Adjournment
Moved by Council Member Budziszewski and seconded by Council Member Kiser to adjourn the
meeting.
Motion carried.
The meeting adjourned at 8:10 p.m.
___________________________________
Jim Adams, Mayor
ATTEST:
_____________________________________
Christina Serres, City Clerk
4.1(c)
City of Crystal Council Meeting
June 6, 2023
Applications for City License
Liquor – Off-Sale
Advancer Mercantile, LLC dba Liquor Barrel Wine & Spirits, 5628 West Broadway, Crystal, MN 55428
An Thi Nguyen dba Liquor Barrel, 2728 Douglas Dr. N., Crystal, MN 55422
Cousins, LLC dba Adair Liquor, 6001 42nd Ave. N., Crystal, MN 55422
SuperValu, Inc. dba Cub Wine & Spirits, 5201 36th Ave. N., Crystal, MN 55422
Zahid Beverage Group, LLC dba Crystal Liquor Warehouse, 6200 56th Ave. N., Crystal, MN 55429
Liquor – Off-Sale/3.2% Malt Liquor
Northern Tier Retail, LLC dba Speedway #4052, 5359 West Broadway, Crystal, MN 55428
Northern Tier Retail, LLC dba Speedway #4187, 7818 36th Ave. N., Crystal, MN 55427
SuperValu, Inc. dba Cub Foods, 5301 36th Ave. N., Crystal, MN 55422
Liquor – On-Sale
Blazin Wings, Inc. dba Buffalo Wild Wings #69, 5590 West Broadway, Crystal, MN 55428
Milton’s Café, LLC dba Milton’s Café, 3545 Douglas Dr. N., Crystal, MN 55422
Robeck Industries, Inc. dba Steve O’s, 4900 West Broadway, Crystal, MN 55429
PurpleRose Lounge Corporation dba PurpleRose Lounge, 5526 West Broadway, Crystal, MN 55428
Stino, Inc. dba Big Louie’s Bar & Grill, 5216 West Broadway, Crystal, MN 55429
Liquor – On-Sale/Club
Charles R. Knaeble VFW Post #494, 5222 56th Ave. N., Crystal, MN 55429
Liquor – On-Sale Wine and 3.2% Malt Liquor/On-Sale Sunday
Family Café and Diner, LLC dba Family Café and Diner, 6236 56th Ave. N., Crystal, MN 55429
Liquor – On-Sale/Sunday
Blazin Wings, Inc. dba Buffalo Wild Wings #69, 5590 West Broadway, Crystal, MN 55428
Charles R. Knaeble VFW Post #494, 5222 56th Ave. N., Crystal, MN 55429
Milton’s Café, LLC dba Milton’s Café, 3545 Douglas Dr. N., Crystal, MN 55422
PurpleRose Lounge Corporation dba PurpleRose Lounge, 5526 West Broadway, Crystal, MN 55428
Robeck Industries, Inc. dba Steve O’s, 4900 West Broadway, Crystal, MN 55429
Stino, Inc. dba Big Louie’s Bar & Grill, 5216 West Broadway, Crystal, MN 55429
Liquor – Temporary On-Sale
Pryes Brewing Company, LLC, 1401 West River Rd. N., Minneapolis, MN 55411, for Crystal Frolics on
July 29-30, 2023 at Becker Park
Rental – New
5510 Quail Ave. N. – James Wu (Conditional)
6713 34th Ave. N. – Logan Hutton (Conditional)
5825 46th Ave. N. – Luis Duchi (Conditional)
4.2
Rental – Renewal
5327 Angeline Ave. N. – Robert Read (Conditional)
3130 Aquila Ave. N. – Tom Durkin
3143 Aquila Ave. N. – Lowell Pitkin (Conditional)
3821 Douglas Dr. N. – Clayton and Tammy Duggan (Conditional)
5936 Elmhurst Ave. N. – Barbara Clark (Conditional)
2709-2711 Hampshire Ave. N. – Josh Breitung and Martin Kosto (Conditional)
4230 Hampshire Ave. N. – William Smith (Conditional)
4016 Idaho Ave. N. – Chris Long
4818-4820 Idaho Ave. N. – Jason Flaa
3970 Kentucky Ave. N. – Brian Bona (Conditional)
3524 Kyle Ave. N. – Fowzia Omar (Conditional)
5000 Lakeside Ave. N. – Justin Holt
2910 Louisiana Ave. N. – MNSF T2 SPE LLC (Conditional)
4725 Maryland Ave. N. – SFR Borrower 2021-2 LLC
3246 Nevada Ave. N. – Pavoua Lee (Conditional)
3341 Nevada Ave. N. #4102 – Angela Seitzer
4732 Nevada Ave. N. – Bellagala LLC (Conditional)
5656 Quail Ave. N. – SFR II Borrower 2021-3 LLC
5817 Quail Ave. N. – Lucas Berry
5409 Scott Ave. N. – New Covenant Properties
2971 Sumter Ave. N. – Steven Johnson (Conditional)
3427 Utah Ave. N. – Jeff Dehler
5765 West Broadway – MNSF T3 SPE LLC (Conditional)
5810 West Broadway – Bridge SFR IV Seed Borrower LLC
6806 34th Ave. N. – James Darrah
6901-6903 36th Ave. N. – Carl Hobus (Conditional)
6800 45th Ave. N. – William Smith (Conditional)
6605 45th Pl. N. – Jalana Moe (Conditional)
6825 46th Ave. N. – Stella Iwuchukwu (Conditional)
5324 47th Ave. N. – William Smith (Conditional)
5701 56th Ave. N. – Harold Creek
7600 59th Pl. N. – Benedict Doe (Conditional)
Tree Trimmer
Elijah’s Tree Care LLC, 743 Orchard Park Rd., Orono, MN 55356
Huston’s Tree Service, 15801 Oak Ridge Rd., Eden Prairie, MN 55346
Urban Tree and Landscape, P.O. Box 644, Albany, MN 56307
4.2
CITY OF CRYSTAL
RESOLUTION NO. 2023 -
RESOLUTION ACCEPTING DONATIONS FROM
DONATION BOXES, FRIDLEY LIONS CLUB,
GERALD HAUS AND ERWIN AND SUSAN HEISLER
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 donations:
Donors Purpose Amount
Donation Boxes Crystal K9 Unit $550
Fridley Lions Club Crystal Airport Open House $500
Gerald Haus General Parks Fund $25
Erwin and Susan Heisler Crystal Airport Open House $100
And BE IT FURTHER RESOLVED that the Crystal City Council sincerely thanks the above-named
for their generous donations.
Dated: June 6, 2023
By: __________________________
Jim Adams, Mayor
ATTEST:
__________________________
Christina Serres, City Clerk
4.3
Memorandum
DATE: June 1, 2023
TO: Mayor and City Council
FROM: Adam R. Bell, City Manager
SUBJECT: State Performance Measurement Program
____________________________________________________________________
BACKGROUND:
In 2010-11, the Legislature created a committee to consider local results and innovation
and that committee released a set of ten performance measures for cities and counties
to help evaluate the efficiency of how services are provided to residents.
Participation in this program is on a voluntary basis. Cities and counties that participate
in the program are eligible for a nominal reimbursement ($0.14 per capita).
In 2011, the Crystal City Council adopted these state performance measures with the
approval of Resolution No. 2011-56. The ten measures were addressed in the 2012
community survey completed by Decision Resources, Inc. Since then, a brief online
survey of the ten measures has been conducted during the third quarter of each year.
This year, the survey will again be advertised on the city’s electronic bulletin board, on
the city’s website and Facebook page, and on other social media.
In order to meet the deadline for continuing eligibility in the program, the Council must
adopt a resolution indicating such intent by July 1.
Attached are Resolution No. 2011-56 adopting the program and the proposed resolution
for the city’s 2023 participation.
RECOMMENDATION:
Recommend approval of the resolution regarding the 2023 reporting on the state
performance measures.
Attach:
Res. 2011-56, Resolution Declaring Adoption of State Performance Measures
Res. 2023-__, Resolution Reporting on State Performance Measures
4.4
4.4
CITY OF CRYSTAL
RESOLUTION NO. 2023 - ___
RESOLUTION REPORTING ON
STATE PERFORMANCE MEASURES
WHEREAS, the State Legislature created the Council on Local Results and Innovation
which set a standard set of ten performance measures for cities that will aid residents, taxpayers
and state and local elected officials in determining the efficiency of local services; and
WHEREAS, the measures aid in evaluating residents’ satisfaction with local services; and
WHEREAS, Crystal is eligible for reimbursement; and
WHEREAS, the Crystal City Council adopted Resolution No. 2011-56, declaring Crystal’s
adoption of the State Performance Measures and program and agreeing to meet the reporting
requirements as required by the State Auditor’s office.
NOW, THEREFORE, BE IT RESOLVED by the Crystal City Council that the city of
Crystal declares that:
1. The City has adopted the ten performance measures developed by the Council; and
2. The City will survey its residents on the services included in the performance
benchmarks in the third quarter of 2023; and
3. The City is implementing a local performance measurement system as developed by
the Council based on the survey results; and
4. The City will report the results of the survey, including the ten performance measures
to its residents through publication on the city’s website.
BE IT FURTHER RESOLVED THAT the results of the community survey and
performance measures be provided to the Office of the State Auditor.
Approved this 6th day of June 2023.
__________________________
Jim Adams, Mayor
ATTEST:
____________________________
Christina Serres
City Clerk
4.4
May 16, 2023
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 27 - 30. 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 will also be using this section of road on Saturday afternoon for
the waterball competition hosted by the WMFRA.
We plan to have fireworks on both Friday and Saturday nights (July 28 & 29) 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 would also like to close 46th Ave N between Welcome Ave N and Vera Cruz Ave N
for the entire weekend for volunteer parking and police access. The houses in that
section will still have access to their homes during that time. We will have someone
monitoring the gate during high traffic times.
We also request that Public Works put out “No Parking” signs to allow parking on only
one side of the street throughout the neighborhood. This would include one block of
handicapped parking signs on Welcome Ave N south of the park.
Thank you, in advance, for your cooperation and that of the city staff.
Sincerely,
Debra L Daberkow-Wright
Debra L Daberkow-Wright, President
Crystal Frolics Committee, Inc.
www.crystalfrolics.gmail.com
763-535-1978
4.5(a)
4.5(b)
CITY COUNCIL STAFF REPORT
Public hearing: June 6, 2023 City Council meeting
Consideration of a new on-sale liquor license for Tequilatown, LLC
d/b/a Tequilatown Authentic Mexican Cuisine and Bar
DATE: June 1, 2023
FROM: City Clerk Chrissy Serres
TO: Mayor and City Council
City Manager Adam R. Bell
CC: Police Chief Stephanie Revering
City Attorney Troy Gilchrist
RE: Consideration of a new on-sale liquor license for Tequilatown, LLC d/b/a Tequilatown Authentic
Mexican Cuisine and Bar located at 99 Willow Bend
Background
Fabian Blanco and Moises Blanco, owners of Tequilatown, LLC, have submitted a new on-sale liquor
license application for a restaurant/bar located at 99 Willow Bend in Crystal Shopping Center. In
addition, the applicants are seeking approval for a Sunday on-sale license. The property is zoned
Commercial and restaurants with on-sale liquor are a permitted use in that district.
Staff has reviewed the liquor license application materials. A background check was completed by the
police department and Police Chief Revering finds no reason to prohibit issuance of the license.
A public hearing notice was published in the Sun Post on May 25, 2023 (Attachment A).
The owners anticipate opening in July 2023 and the proposed hours for the business are as follows:
Monday through Thursday: 11 a.m. – 10 p.m.
Friday and Saturday: 11 a.m. – 11 p.m.
Sunday: 11:30 a.m. – 9:30 p.m.
Fabian Blanco and Moises Blanco will be at the June 6, 2023 City Council meeting to answer any
questions.
Requested City Council action
Staff recommends approval of the new on-sale liquor and Sunday licenses for Tequilatown, LLC d/b/a
Tequilatown Authentic Mexican Cuisine and Bar located at 99 Willow Bend.
6.1
CITY OF CRYSTAL
NOTICE OF PUBLIC HEARING
TO CONSIDER AN ON-SALE LIQUOR LICENSE
AT 99 WILLOW BEND
Notice is hereby given that the Crystal City Council will hold a public hearing on June 6,
2023 at 7 p.m. in the Council Chambers, located at 4141 Douglas Dr. N., to consider an
on-sale liquor license at 99 Willow Bend submitted by Tequilatown, LLC d/b/a
Tequilatown Authentic Mexican Cuisine and Bar. Anyone wishing to express a view
either in person or in writing will be heard at the public hearing.
Auxiliary aids are available for public meetings upon request to individuals with
disabilities by calling the city clerk at 763-531-1145 at least 96 hours in advance. TTY
users may call Minnesota Relay at 711 or 1-800-627-3529.
City Clerk Chrissy Serres
Attachment A
6.1
DATE: June 1, 2023
TO: Adam R. Bell, City Manager
City of Crystal City Council
FROM: Jean McGann, Contracted Finance Director
RE: Expenditures over $25,000
Payee Amount
MN PERA Employee & city required contributions for 5/12/23 pay date $66,628.22
IRS - EFTPS Federal & FICA withholding taxes for 5/12/23 pay date $65,424.78
Northdale Construction Company 2023 Utility Reconstruction project $34,999.38
Nitti Sanitation, Inc.Annual HRG curbside cleanup event for residents $360,712.18
Metropolitan Council Environ Svs Wastewater services for June $138,936.19
Short Elliot Hendrickson, Inc. 2022 & 2023 Utility Reconstruction projects $28,162.07
IRS - EFTPS Federal & FICA withholding taxes for 5/26/23 pay date $66,903.44
$761,766.26
Description
7.1
ANNUAL COMPREHENSIVE
FINANCIAL REPORT
OF THE
CITY OF CRYSTAL,
MINNESOTA
For the Year Ended
December 31, 2022
Prepared by
City of Crystal Finance Department
Abdo Financial Solutions, Finance Director
7.2
City of Crystal
Table of Contents
Page
Introductory Section
Elected Officials and Administration 1
Organizational Chart 3
Letter of Transmittal 5
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 Basic 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
Supplementary Information
Nonmajor Governmental Funds 105
7.2
City of Crystal
Table of Contents
Page
Supplementary Information (Continued)
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 108
Schedule of Revenues, Expenditures, and Changes in Fund Balance
– Budget and Actual – TIF Districts - Special Revenue 110
Schedule of Revenues, Expenditures, and Changes in Fund Balance
– Budget and Actual – EDA - Special Revenue 111
Schedule of Revenues, Expenditures, and Changes in Fund Balance
– Budget and Actual – Street Reconstruction - Capital Projects 112
Schedule of Revenues, Expenditures, and Changes in Fund Balance
Budget and Actual – Park Improvement - Capital Projects 113
Schedule of Revenues, Expenditures, and Changes in Fund Balance
– Budget and Actual – Police Equipment Revolving - Capital Projects 114
Combining Statement of Net Position - Internal Service Funds 115
Combining Statement of Revenues, Expenditures, and Changes in Net Position
– Internal Service Funds 116
Combining Statement of Cash Flows – Internal Service Funds 117
Statistical Section (Unaudited) Table Page
Net Position by Component 1 122
Change in Net Position 2 124
Fund Balances of Governmental Funds 3 128
Changes in Fund Balances of Governmental Funds 4 130
Taxable and Estimated Market Values of Taxable Property 5 132
Property Tax Rates – Direct and Overlapping Governments 6 133
Principal Property Taxpayers 7 134
Property Tax Levies and Collations 8 135
Legal Debt Margin Information 9 136
Ratios of Outstanding Debt by Type 10 138
Ratios of General Bonded Debt Outstanding 11 139
Direct and Overlapping Governmental Activities Debt 12 140
Demographic and Economic Statistics 13 141
Principal Employers 14 142
Full-Time City Government Employees by Function 15 143
Operating Indicators by Function 16 144
Capital Asset Statistics by Function 17 146
7.2
7.2
1
City of Crystal
Elected Officials and Administration
December 31, 2022
Elected Officials Position Term Expires
Jim Adams Mayor December 31, 2024
Nancy LaRoche Council Member (Section I - Wards 1 and 2) December 31, 2024
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, 2024
David Cummings Council Member (Ward 4)December 31, 2024
Administration Position
City Manager Appointed
City Finance Director Appointed
City Clerk Appointed
City Attorney Appointed
Anne Norris
Abdo Financial Solutions
Christina Serres
Kennedy and Graven, Chartered
Eckberg Lammers, PC City Prosecutor Appointed
7.2
2
7.2
3
City of Crystal
Organizational Chart
December 31, 2022
7.2
4
7.2
5
4141 Douglas Drive North • Crystal, Minnesota 55422-1696
Tel: (763) 531-1000 • Fax: (763) 531-1188 • www.crystalmn.gov
May 25, 2023
To the Crystal City Council and Citizens of the City of Crystal, Minnesota
The Annual Comprehensive Financial Report of the City of Crystal, Minnesota, for the fiscal year
ended December 31, 2022, 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 City of Crystal’s operations
and financial position. Consequently, management assumes full responsibility for the
completeness and reliability of all the information presented in this report. To provide a reasonable
basis for making these representations, city management has established a comprehensive internal
control framework that is designed both to protect the government's assets from loss, theft, or
misuse and to compile sufficient reliable information for the preparation of the City's financial
statements in conformity with GAAP. Because the cost of internal controls should not outweigh
their benefits, the City's internal controls have been designed to provide reasonable, rather than
absolute, assurance that the financial statements will be free from material misstatement. As
management, we assert that, to the best of our knowledge and belief, this financial report is
complete and reliable in all material respects.
The City's financial statements have been audited by BerganKDV, Ltd., a firm of licensed certified
public accountants. The goal of the independent audit was to provide reasonable assurance that the
financial statements of the city for the fiscal year ended December 31, 2022, 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, 2022, are fairly presented in conformity with GAAP. The independent
auditor's report is presented as the first component of the Financial Section of this report.
GAAP requires that management provide a narrative introduction, overview, and analysis to
accompany the basic financial statements in the form of Management's Discussion and Analysis
(MD&A). This letter of transmittal is designed to complement MD&A and should be read in
conjunction with it. The City's MD&A can be found immediately following the report of the
independent auditors.
7.2
6
Profile of Government
The City of Crystal, 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 of Crystal 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 of Crystal 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 inspections, planning, and zoning, 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 that 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.
7.2
7
FACTORS AFFECTING ECONOMIC CONDITION
Local Economy
Crystal is a modest residential bedroom community. While it has a small amount of industry, it
has a strong 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 of
Crystal 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 represents 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 2020 Census, Crystal's population was 23,330. The most recent estimate
from the Metropolitan Council is that Crystal's population is 22,791.
The City of Crystal saw significant increases in the market value of commercial/industrial and
residential property until 2008. The City's taxable market value began decreasing with a 10.1%
decrease from 2010 to 2011, 13.3% from 2011 to 2012, 12.1% from 2012 to 2013, and 0.1% from
2013 to 2014. In 2015, the City then started seeing increases with the most recent increase of
14.06% from 2021 to 2022. Table 5 in the Statistical Section provides additional information on
property values.
Because Crystal is fully developed, redevelopment of targeted sites is generally necessary to
increase the community's tax base. In 2022, construction took place on two $2,000,000+ medical
clinics. The City continues to investigate redevelopment options as they arise.
New homes not only increase the City of Crystal'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. Qualifying property owners up to 100% of area median income are eligible for
grants of up to $8,000 for qualifying improvements. 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 curbs, gutters, and sidewalks, and add storm sewer.
The Building Fund is an Internal Service fund created for the purpose of accumulating reserves
for the replacement of buildings such as the Police Station (majority of the construction completed
in 2022), Fire Stations 1 and 2, streets, parks, and utility buildings, the Community Center, and
any other major building projects that may be needed over the next fifteen years.
7.2
8
FACTORS AFFECTING ECONOMIC CONDITION (CONTINUED)
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. The purpose of this policy is to assist with cash flow requirements and
contingency during the second half of the fiscal year. The City operates on a calendar year basis,
but half of the property taxes and LGA are received in July and the other half in December.
Property taxes and intergovernmental revenues were 89% of the General Fund's revenue in 2022.
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
annual comprehensive financial report with the most recent fiscal year ending December 31, 2021.
To be awarded a Certificate of Achievement, a government must publish an easily readable and
efficiently organized annual comprehensive 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 annual comprehensive 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.
Acknowledgments
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 should also 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,
Adam R. Bell
City Manager
City of Crystal
7.2
9
City of Crystal
Certificate of Achievement for Excellence in Financial Reporting
7.2
10
7.2
11
Independent Auditor's Report
Honorable Mayor and Members
of the City Council
City of Crystal
Crystal, Minnesota
Report on the Audit of the Financial Statements
Opinions
We have audited the 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, 2022, and the related notes to the financial statements, which
collectively comprise the City's basic financial statements as listed in the Table of Contents.
In our opinion, the accompanying financial statements 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,
2022, and the respective changes in financial position and, where applicable, cash flows thereof, and the
budgetary comparison for the General Fund for the year then ended in accordance with accounting
principles generally accepted in the United States of America.
Basis for Opinions
We conducted our audit in accordance with auditing standards generally accepted in the United States of
America (GAAS) and the standards applicable to financial audits contained in Government Auditing
Standards, issued by the Comptroller General of the United States. Our responsibilities under those
standards are further described in the Auditor's Responsibilities for the Audit of the Financial Statements
section of our report. We are required to be independent of the City and to meet our other ethical
responsibilities, in accordance with the relevant ethical requirements relating to our audit. We believe
that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit
opinions.
Emphasis of Matter – Implementation of GASB 87
The City has adopted new accounting guidance, Governmental Accounting Standards Board (GASB)
Statement No. 87, Leases. Our opinion is not modified with respect to this matter.
Responsibilities of Management for the Financial Statements
The City of Crystal's management is responsible for the preparation and fair presentation of the financial
statements in accordance with accounting principles generally accepted in the United States of America,
and for the design, implementation, and maintenance of internal control relevant to the preparation and
fair presentation of financial statements that are free from material misstatement, whether due to fraud or
error.
7.2
12
Responsibilities of Management for the Financial Statements (Continued)
In preparing the financial statements, management is required to evaluate whether there are conditions
or events, considered in the aggregate, that raise substantial doubt about the City's ability to continue as
a going concern for one year beyond the financial statement date, including any currently known
information that may raise substantial doubt shortly thereafter.
Auditor's Responsibilities for the Audit of the Financial Statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are
free from material misstatement, whether due to fraud or error, and to issue an auditor's report that
includes our opinions. Reasonable assurance is a high level of assurance but is not absolute assurance
and therefore is not a guarantee that an audit conducted in accordance with GAAS and Government
Auditing Standards will always detect a material misstatement when it exists. The risk of not detecting a
material misstatement resulting from fraud is higher than for one resulting from error, as fraud may
involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
Misstatements are considered material if there is a substantial likelihood that, individually or in the
aggregate, they would influence the judgment made by a reasonable user based on the financial
statements.
In performing an audit in accordance with GAAS and Government Auditing Standards, we:
Exercise professional judgment and maintain professional skepticism throughout the audit.
Identify and assess the risks of material misstatement of the financial statements, whether due to
fraud or error, and design and perform audit procedures responsive to those risks. Such
procedures include examining, on a test basis, evidence regarding the amounts and disclosures in
the financial statements.
Obtain an understanding of internal control relevant to the audit 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, no such opinion is
expressed.
Evaluate the appropriateness of accounting policies used and the reasonableness of significant
accounting estimates made by management, as well as evaluate the overall presentation of the
financial statements.
Conclude whether, in our judgment, there are conditions or events, considered in the aggregate,
that raise substantial doubt about the City's ability to continue as a going concern for a
reasonable period of time.
We are required to communicate with those charged with governance regarding, among other matters,
the planned scope and timing of the audit, significant audit findings, and certain internal control–related
matters that we identified during the audit.
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 $1,277,625 and
$5,330,686, 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.
7.2
13
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 Required Supplementary information as
listed in the Table of Contents be presented to supplement the basic financial statements. Such
information is the responsibility of management and, 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.
Supplementary Information
Our audit was conducted for the purpose of forming opinions on the financial statements that
collectively comprise the City of Crystal's basic financial statements. The accompanying supplementary
information identified in the Table of Contents is presented for purposes of additional analysis and are
not a required part of the basic 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 accompanying supplementary
information is fairly stated, in all material respects, in relation to the basic financial statements as a
whole.
Other Information
Management is responsible for the other information included in the Annual Comprehensive Financial
Report. The other information comprises the introductory and statistical sections but does not include
the basic financial statements and our auditor's report thereon. Our opinions on the basic financial
statements do not cover the other information, and we do not express an opinion or any form of
assurance thereon.
In connection with our audit of the basic financial statements, our responsibility is to read the other
information and consider whether a material inconsistency exists between the other information and the
basic financial statements, or the other information otherwise appears to be materially misstated. If,
based on the work performed, we conclude that an uncorrected material misstatement of the other
information exists, we are required to describe it in our report.
7.2
14
Other Reporting Required by Government Auditing Standards
In accordance with Government Auditing Standards, we have also issued our report dated May 25, 2023,
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 the City's
internal control over financial reporting and compliance.
Minneapolis, Minnesota
May 25, 2023
7.2
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, 2022. 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 $125,639,972. Of this amount, $26,368,903 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 $5,803,137. Governmental activities experienced a $3,553,276
increase in net position from operations while business-type activities experienced a $2,249,861 increase
in net position from operations.
At the end of the fiscal year, total fund balance for the General Fund was $6,512,093, or 36.21% of total
General Fund expenditures and transfers out.
The City's total long-term debt (excluding net pension liability and net OPEB obligation) decreased by
$1,203,826 during the fiscal year. The City's Total OPEB Liability decreased by $142,604.
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).
7.2
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.
7.2
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.
7.2
City of Crystal
Management's Discussion and Analysis
18
GOVERNMENT-WIDE FINANCIAL ANALYSIS
Net Position
The City has 70.26% 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 8.75% of the City's net position represents resources that are subject to external restrictions
on how they may be used. The remaining balance of 20.99% 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:
2022 2021 2022 2021 2022 2021
Current and Other Assets 36,131,923$ 44,054,577$ 8,976,685$ 9,505,466$ 45,108,608$ 53,560,043$
Equity interest in joint venture 1,277,625 949,220 5,330,686 5,058,743 6,608,311 6,007,963
Capital assets 74,277,002 64,714,803 25,485,834 22,539,961 99,762,836 87,254,764
Total assets 111,686,550 109,718,600 39,793,205$ 37,104,170 151,479,755$ 146,822,770
Deferred Outflows of Resources 10,060,271 5,970,382 248,497 324,756 10,308,768 6,295,138
Long-Term liabilities
outstanding 29,198,925 18,576,484 1,014,260 704,567 30,213,185 19,281,051
Other liabilities 2,848,194 4,629,079 854,653 438,800 3,702,847 5,067,879
Total liabilities 32,047,119 23,205,563 1,868,913 1,143,367 33,916,032 24,348,930
Deferred Inflows of Resources 2,135,092 8,472,085 97,427 460,058 2,232,519 8,932,143
Net Position
Net investment
in capital assets 62,949,446 53,305,046 25,321,967 22,539,961 88,271,413 75,845,007
Restricted 10,999,656 12,295,252 - - 10,999,656 12,295,252
Unrestricted 13,615,508 18,411,036 12,753,395 13,285,540 26,368,903 31,696,576
Total net position 87,564,610$ 84,011,334$ 38,075,362 35,825,501$ 125,639,972$ 119,836,835$
Changes in Net Position
Governmental Activities Business-Type Activities Total
7.2
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 2022 and 2021 follows:
2022 2021 2022 2021 2022 2021
Revenues
Program revenues
Charges for services 2,199,421$ 1,742,602$ 10,327,899$ 10,042,428$ 12,527,320$ 11,785,030$
Operating grants and
contributions 890,737 963,527 563,599 202,760 1,454,336 1,166,287
Capital grants and
contributions 8,553,139 1,670,868 7,801 49,395 8,560,940 1,720,263
General revenues
Property taxes 14,175,783 13,437,858 - - 14,175,783 13,437,858
Intergovernmental 1,220,414 1,552,768 - - 1,220,414 1,552,768
Grants and contributions
not restricted to
specific programs - - - - - -
Other (358,835) 163 (135,363) (21,648) (494,198) (21,485)
Total revenues 26,680,659 19,367,786 10,763,936 10,272,935 37,444,595 29,640,721
Expenses
General government 2,304,721 2,538,863 - - 2,304,721 2,538,863
Public safety 10,325,270 8,207,219 - - 10,325,270 8,207,219
Public works 4,650,024 4,789,185 - - 4,650,024 4,789,185
Parks and recreation 4,615,108 4,097,820 - - 4,615,108 4,097,820
Community development 1,481,719 1,748,467 - - 1,481,719 1,748,467
Interest on long-term debt 255,755 307,840 - - 255,755 307,840
Water - - 3,817,096 3,718,004 3,817,096 3,718,004
Sanitary sewer - - 2,668,640 2,742,022 2,668,640 2,742,022
Storm drainage- - 937,050 817,652 937,050 817,652
Street lights - - 205,757 180,314 205,757 180,314
Recycling - - 380,318 344,702 380,318 344,702
Total expenses 23,632,597 21,689,394 8,008,861 7,802,694 31,641,458 29,492,088
Change in Net Position
Before Transfers 3,048,062 (2,321,608) 2,755,075 2,470,241 5,803,137 148,633
Transfers 505,214 479,501 (505,214) (479,501) - -
Change in Net Position 3,553,276 (1,842,107) 2,249,861 1,990,740 5,803,137 148,633
Net position - beginning of year 84,011,334 85,853,441 35,825,501 33,834,761 119,836,835 119,688,202
Net position - end of year 87,564,610$ 84,011,334$ 38,075,362$ 35,825,501$ 125,639,972$ 119,836,835$
Governmental Activities Business-Type Activities Total
Changes in Net Position
Governmental Activities
Governmental activities increased the City's governmental-type net position by $3,553,276, or 4.23%,
accounting for 61.23% 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 $2,249,861, or 6.28%,
accounting for 38.77% of the total increase in the City's net position.
7.2
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 $3,553,276, or 4.23%,
accounting for 61.23% 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 $2,249,861, or 6.28%,
accounting for 38.77% 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 9% for water, 8% for Sewer, and
4.75% for the storm drainage utility.
7.2
City of Crystal
Management's Discussion and Analysis
21
EXPENSES AND PROGRAM REVENUES
Governmental Activities
$0
$2,000,000
$4,000,000
$6,000,000
$8,000,000
$10,000,000
$12,000,000
General
government
Public safety Public works Parks and
recreation
Community
development
Interest on long-
term debt
2022 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
$9,000,000
General
government
Public safety Public works Parks and
recreation
Community
development
Interest on long-
term debt
2021 Expenses and Program Revenues -Governmental Activities
Expenses Revenues
7.2
City of Crystal
Management's Discussion and Analysis
22
REVENUES BY SOURCE
Capital grants
and contributions
31%
Charges for
services
8%
Operating grants
and contributions
3%
Property taxes
51%
Intergovernmental
0%
Unrestricted
investment
earnings
-2%
2022 Revenues by Source - Governmental Activities
8.6%, Capital grants
and contributions
9.0%, Charges
for services
5.0%, Operating
grants and
contributions
69.4%, Property
taxes
8.0%,
Intergovernmental
-0.8%,
Unrestricted
investment
earnings0.4%, Other
general revenue
2021 Revenues by Source - Governmental Activities
7.2
City of Crystal
Management's Discussion and Analysis
23
EXPENSES AND PROGRAM REVENUES
0
1,000,000
2,000,000
3,000,000
4,000,000
5,000,000
6,000,000
Water Sanitary Sewer Storm drainage Street lights Recycling
2022 Expenses and Program Revenues - Business Type Activities
Expenses Revenues
0
1,000,000
2,000,000
3,000,000
4,000,000
5,000,000
6,000,000
Water Sanitary Sewer Storm drainage Street lights Recycling
2021 Expenses and Program Revenues - Business Type Activities
Expenses Revenues
7.2
City of Crystal
Management's Discussion and Analysis
24
REVENUES BY SOURCE
Charges for
services
94%
Operating grants
and contributions
5%
Unrestricted
investment
earnings
-1%
2022 Revenues by Source - Business Type Activities
Charges for
services
97%
Operating grants
and contributions
2%
Unrestricted
investment
earnings
0%
2021 Revenues by Source - Business Type Activities
7.2
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
$24,906,356, a decrease of $1,523,219 compared to the prior year.
Approximately 22.32% of the total amount ($5,558,799) constitutes unassigned fund balance, which is
available for spending at the government's discretion. The remainder of fund balance has been classified
as nonspendable ($35,338), restricted ($5,025,433), committed ($14,187,152), and assigned ($99,634).
The General Fund is the main operating fund of the City. At the end of the fiscal year total fund balance
was $6,512,093. Unassigned fund balance was $5,558,799 of this amount, $917,956 was committed for
amounts incurred as an expense but not yet paid, and $35,338 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 unassigned fund balance to total fund expenditures. Unassigned fund balance represents 30.91%
of total General Fund expenditures and transfers out. The unassigned fund balance is slightly less 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 a decrease of $1,257,445 in the fund balance of the General Fund during the current fiscal year
driven by an expenditure increase of $1,317,481 compared to the prior year. Total revenues were
$393,139 lower than the final budget. Intergovernmental revenues were higher than budget, while charges
for services, fines and forfeitures, licenses and permits, special assessments, and miscellaneous revenues
were lower than the final budget. Actual expenditures were $882,098 higher than the final budget.
The EDA Fund recorded a decrease of $77,447 in its fund balance during the current fiscal year. The fund
balance of $2,232,803 was committed for economic development projects.
The Debt Service Fund has a total fund balance of $4,051,763, all of which is restricted for the payment
of debt service. The net decrease in fund balance during the current fiscal year was $287,098. 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 a decrease of $68,615 in its fund balance during the current
fiscal year. All of the fund balance of $6,623,565 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 $12,753,395 at the end of the fiscal year.
The water, sewer, and storm drainage funds reported increases in net position from operations of
$1,489,465, $476,885, and $330,534, respectively. Streetlights and recycling utility reported a decrease in
net position from operations of $41,120 and $5,903.
7.2
City of Crystal
Management's Discussion and Analysis
26
FINANCIAL ANALYSIS OF THE CITY'S FUNDS (CONTINUED)
Budget Highlights
The City's General Fund budget was not amended during the year. Both revenues and expenditures
provided a negative budget variance. Total revenues were $393,139 lower than the final budget. Property
taxes, special assessments, licenses and permits, charges for sales and/or services, fines and forfeitures,
and interest revenues were lower than budget, while intergovernmental were higher than budget. Actual
expenditures were $882,098 higher than the budget. Public safety, public works, general government, and
recreation expenses were higher than budget, but 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, 2022,
are $99,762,836. This balance represents a net increase of $12,508,072 from the prior year. Additional
details of capital asset activity for the year can be found in Note 5 in the notes to the financial statements.
Long-term Debt
The City's total long-term debt decreased by $1,203,826, or 9.65%, 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 General Obligation debt.
State statutes limit the amount of General Obligation debt a governmental entity may issue to 3% of total
taxable market value. The current debt limitation for the City is $77,383,408. The City currently has no
outstanding General Obligation debt.
Economic Factors and Next Year's Budgets and Rates
Economic factors affect the preparation of annual budgets. The following factors were considered in
preparing the City's budget for the 2022 fiscal year:
The 2022 budget includes a 5.27% tax levy increase. This will be supplemented by increases in
other revenues to cover an inflationary increases within the operating budget.
In 2022, the City completed a utility rate study that updates the long-term plan for the utility funds
resulting in varying increases to residential and commercial users.
7.2
City of Crystal
Management's Discussion and Analysis
27
FINANCIAL ANALYSIS OF THE CITY'S FUNDS (CONTINUED)
Requests for Information
Questions concerning any of the information provided in this report or requests for additional information
should be addressed to:
City of Crystal
Attn: Finance Director
4141 Douglas Drive N.
Crystal, MN 55422
7.2
28
7.2
29
BASIC FINANCIAL STATEMENTS
7.2
See notes to basic financial statements. 30
City of Crystal
Statement of Net Position
December 31, 2022
Governmental
Activities
Business-Type
Activities Total
Assets
Cash and investments (including cash equivalents) 24,541,386$ 4,941,543$ 29,482,929$
Temporarily restricted cash 159,774 - 159,774
Accrued interest 48,644 - 48,644
Accounts receivable 195,482 1,978,236 2,173,718
Delinquent taxes receivable 215,814 - 215,814
Special assessments receivable 7,496,631 404,469 7,901,100
Due from other governments 3,553,998 7,939 3,561,937
Lease receivable 1,013,856 - 1,013,856
Internal balances (1,400,000) 1,400,000 -
Inventory 32,686 78,343 111,029
Prepaid items 2,652 166,155 168,807
Land held for resale 271,000 - 271,000
Equity interest in joint venture 1,277,625 5,330,686 6,608,311
Capital assets (net of accumulated depreciation/amortization,
where applicable)
Land 6,860,536 759,061 7,619,597
Buildings and structures 9,650,927 - 9,650,927
Improvements other than buildings 2,733,165 190,127 2,923,292
Machinery and equipment 2,267,179 1,011,155 3,278,334
Office equipment and furnishings 215,919 - 215,919
Software 1,886 15,704 17,590
Vehicles and trailers 2,057,381 - 2,057,381
Infrastructure 32,850,012 19,827,598 52,677,610
Construction in progress 17,398,835 3,682,189 21,081,024
Leased vehicles 241,162 241,162
Total assets 111,686,550 39,793,205 151,479,755
Deferred Outflows of Resources
Pension-related deferred outflows of resourecs 9,757,176 217,737 9,974,913
OPEB-related deferred outflows of resources 303,095 30,760 333,855
Total deferred outflows of resources 10,060,271 248,497 10,308,768
Liabilities
Accounts and other current liabilities 2,636,010 854,653 3,490,663
Interest payable 100,087 - 100,087
Unearned revenue 112,097 - 112,097
Noncurrent liabilities
Due within one year 1,706,555 32,828 1,739,383
Due in more than one year 9,461,342 75,987 9,537,329
Net pension liability, due in more than one year 16,372,182 737,094 17,109,276
Total OPEB liability, due in more than one year 1,658,846 168,351 1,827,197
Total liabilities 32,047,119 1,868,913 33,916,032
Deferred Inflows of Resources
Pension-related deferred inflows of resources 285,341 11,121 296,462
OPEB-related deferred inflows of resources 850,416 86,306 936,722
Deferred inflows of resources related to lease receivable 999,335 - 999,335
Total deferred inflows of resources 2,135,092 97,427 2,232,519
Net Position
Net investment in capital assets 62,949,446 25,321,967 88,271,413
Restricted for
TIF projects 885,615 - 885,615
Debt service 10,025,986 - 10,025,986
Special projects 88,055 - 88,055
Unrestricted 13,615,508 12,753,395 26,368,903
Total net position 87,564,610$ 38,075,362$ 125,639,972$
7.2
See notes to basic financial statements. 31 Program RevenuesExpensesCharges for ServicesOperating Grants and ContributionsCapital Grants and ContributionsGovernmental ActivitiesBusiness-Type ActivitiesTotalGovernmental activities General government 2,304,721$ 251,089$ 96,996$ 34,390$ (1,922,246)$ -$ (1,922,246)$ Public safety 10,325,270 597,493 726,200 6,826,342 (2,175,235) - (2,175,235) Public works 4,650,024 - 13,074 1,575,239 (3,061,711) - (3,061,711) Recreation 4,615,108 518,047 12,840 80,000 (4,004,221) - (4,004,221) Community development 1,481,719 832,792 41,627 37,168 (570,132) - (570,132) Interest on long-term debt 255,755 - - - (255,755) - (255,755) Total governmental activities 23,632,597 2,199,421 890,737 8,553,139 (11,989,300) - (11,989,300) Business-type activities Water 3,817,096 5,032,917 546,634 - - 1,762,455 1,762,455 Sanitary sewer 2,668,640 3,347,460 16,876 7,801 - 703,497 703,497 Storm drainage 937,050 1,365,594 87 - - 428,631 428,631 Street lights 205,757 195,553 2 - - (10,202) (10,202) Recycling 380,318 386,375 - - - 6,057 6,057 Total business-type activities 8,008,861 10,327,899 563,599 7,801 - 2,890,438 2,890,438 Total primary government 31,641,458$ 12,527,320$ 1,454,336$ 8,560,940$ (11,989,300) 2,890,438 (9,098,862) General revenues Property taxes 14,175,783- 14,175,783 Unrestricted grants and state aids1,220,414 - 1,220,414 Unrestricted investment earnings (605,649) (135,363) (741,012) Other general revenue 135,828 - 135,828 Gain on sale of capital assets 110,986 - 110,986 Transfers 505,214 (505,214) - Total general revenues and transfers 15,542,576 (640,577) 14,901,999 Change in net position 3,553,276 2,249,861 5,803,137 Net position - beginning 84,011,334 35,825,501 119,836,835 Net position - ending 87,564,610$ 38,075,362$ 125,639,972$ Net (Expense) Revenues and Changes in Net PositionFunctions/ProgramsCity of CrystalStatement of ActivitiesYear Ended December 31, 2022 7.2
See notes to basic financial statements. 32
General Fund Debt Service
Street
Reconstruction -
Capital Projects
Assets
Cash and investments 6,982,296$ 4,038,726$ 1,637,277$
Temporarily restricted cash 159,774 - -
Taxes receivable 201,944 1,524 6,337
Special assessments receivable 70,091 6,086,199 1,249,005
Accounts receivable 71,257 - 21,351
Lease receivable 1,013,856 - -
Accrued interest 48,644 - -
Advances to other funds 99,350 - 5,000,000
Due from other governments 42,542 - 523,621
Inventories 32,686 - -
Prepaid items 2,652 - -
Land held for resale - - -
Total assets 8,725,092$ 10,126,449$ 8,437,591$
Liabilities
Accounts payable 187,184$ 376$ 38,137$
Due to other governments 151,798 - -
Salaries and benefits payable 405,061 - -
Deposits payable 159,774 - -
Advances from other funds - - -
Unearned revenue 112,097 - -
Total liabilities 1,015,914 376 38,137
Deferred Inflows of Resources
State aid related deferred inflows of resources - - 523,621
Unavailable revenue - property taxes 127,811 - 6,337
Unavailable revenue - special assessments 69,939 6,074,310 1,245,931
Deferred inflows of resources related to lease receivable 999,335 - -
Total deferred inflows of resources 1,197,085 6,074,310 1,775,889
Fund Balances
Nonspendable 35,338 - -
Restricted - 4,051,763 -
Committed 917,956 - 6,623,565
Assigned - - -
Unassigned 5,558,799 - -
Total fund balances 6,512,093 4,051,763 6,623,565
Total liabilities, deferred inflow of
resouces, and fund balances 8,725,092$ 10,126,449$ 8,437,591$
City of Crystal
Balance Sheet - Governmental Funds
December 31, 2022
7.2
33
Other
Governmental
Funds
Total
Governmental
Funds
6,265,068$ 18,923,367$
- 159,774
6,009 215,814
91,336 7,496,631
102,874 195,482
- 1,013,856
- 48,644
1,171,935 6,271,285
- 566,163
- 32,686
- 2,652
271,000 271,000
7,908,222$ 35,197,354$
68,641$ 294,338$
1,190 152,988
4,577 409,638
2,000 161,774
15,713 15,713
- 112,097
92,121 1,146,548
- 523,621
5,830 139,978
91,336 7,481,516
- 999,335
97,166 9,144,450
- 35,338
973,670 5,025,433
6,645,631 14,187,152
99,634 99,634
- 5,558,799
7,718,935 24,906,356
7,908,222$ 35,197,354$
7.2
34
7.2
See notes to basic financial statements. 35
City of Crystal
Reconciliation of the Balance Sheet to
the Statement of Net Position - Governmental Funds
December 31, 2022
Total fund balances - governmental funds 24,906,356$
Cost of capital assets 94,697,252
Less accumulated depreciation/amortization (51,121,434)
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 139,978
Special assessments 7,481,516
State shared taxes 523,621
Long-term liabilities are included in net position but are excluded from fund balances until due
and payable.
Bond principal payable (9,690,000)
Premium on debt (314,098)
Discount on debt 3,991
Lease liability (249,834)
Interest payable (100,087)
Compensated absences payable (917,956)
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 (850,416)
Deferred outflows of resources related to OPEB 303,095
Total OPEB liability (1,658,846)
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 (285,341)
Deferred outflows of resources related to pensions 9,757,176
Net pension liability (16,372,182)
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. 30,034,194
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 1,277,625
Total net position - governmental activities 87,564,610$
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.
7.2
See notes to basic financial statements. 36
General Fund Debt Service
Street
Reconstruction -
Capital Projects
Revenues
Property taxes 12,488,689$ -$ 245,926$
Special assessments 27,431 1,437,400 411,314
Licenses and permits 850,953 - -
Intergovernmental 1,927,302 - 590,323
Charges for services 854,019 - -
Fine and forfeitures 184,396 - -
Interest (173,505) (54,632) (184,568)
Miscellaneous 45,972 - 574
Total revenues 16,205,257 1,382,768 1,063,569
Expenditures
Current
General government 2,424,851 - -
Public safety 9,082,619 - -
Public works 1,873,638 - -
Recreation 3,869,267 - -
Economic development 735,304 - -
Debt service
Principal - 1,370,000 -
Interest and other charges - 299,866 -
Capital outlay - - 1,132,184
Total expenditures 17,985,679 1,669,866 1,132,184
Excess of revenues
under expenditures (1,780,422) (287,098) (68,615)
Other Financing Sources (Uses)
Proceeds from sale of capital asset 3,185 - -
Lease issuance 14,578 - -
Transfers in 505,214 - -
Total other financing
sources (uses) 522,977 - -
Net change in fund
balances (1,257,445) (287,098) (68,615)
Fund Balances
Beginning of year 7,769,538 4,338,861 6,692,180
End of year 6,512,093$ 4,051,763$ 6,623,565$
City of Crystal
Statement of Revenues, Expenditures, and
Changes in Fund Balances - Governmental Funds
Year Ended December 31, 2022
7.2
37
Other
Governmental
Funds
Total
Governmental
Funds
1,425,291$ 14,159,906$
32,839 1,908,984
- 850,953
126,890 2,644,515
- 854,019
4,440 188,836
(150,102) (562,807)
129,357 175,903
1,568,715 20,220,309
59,684 2,484,535
18,966 9,101,585
- 1,873,638
3,042 3,872,309
664,375 1,399,679
43,605 1,413,605
9,704 309,570
996,903 2,129,087
1,796,279 22,584,008
(227,564) (2,363,699)
24,064 27,249
293,439 308,017
- 505,214
317,503 840,480
89,939 (1,523,219)
7,628,996 26,429,575
7,718,935$ 24,906,356$
7.2
38
7.2
See notes to basic financial statements. 39
City of Crystal
Reconciliation of the Statement of Revenues,
Expenditures, and Changes in Fund Balances to
Year Ended December 31, 2022
(1,523,219)$
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 1,559,045
Depreciation/amortization expense (3,173,697)
Revenues relating to delinquent taxes, special assessments, and State shared taxes 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. (871,023)
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 1,370,000
Lease principal payments and adjustments 43,605
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 41,607
Amortization of bond discount (1,957)
Accrued interest payable 14,165
Compensated absences 39,565
OPEB expense 58,589
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 (714,756)
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. 6,382,947
Net income (loss) from equity interests is included in the change in net position but is excluded
from the change in fund balances. 328,405
Change in net position - governmental activities 3,553,276$
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
7.2
See notes to basic financial statements. 40
City of Crystal
Statement of Revenues, Expenditures, and
Changes in Fund Balances -
Budget and Actual - General Fund
Year Ended December 31, 2022
Original Final
Actual
Amounts
Revenues
Property taxes 12,586,094$ 12,586,094$ 12,488,689$ (97,405)$
Special assessments 52,000 52,000 27,431 (24,569)
Licenses and permits 850,960 850,960 850,953 (7)
Intergovernmental 1,777,489 1,777,489 1,927,302 149,813
Charges for services 862,503 862,503 854,019 (8,484)
Fine and forfeitures 275,000 275,000 184,396 (90,604)
Interest 125,000 125,000 (173,505) (298,505)
Miscellaneous revenues 69,350 69,350 45,972 (23,378)
Total revenues 16,598,396 16,598,396 16,205,257 (393,139)
Expenditures
General government
Mayor and council 185,451 185,451 168,718 (16,733)
Administration 1,200,366 1,200,366 1,244,944 44,578
Human resources 70,093 70,093 78,197 8,104
Assessing 369,658 369,658 315,265 (54,393)
Legal 64,301 64,301 92,781 28,480
Elections 83,946 83,946 68,987 (14,959)
Finance 379,376 379,376 451,505 72,129
City buildings - - 4,454 4,454
Total general government 2,353,191 2,353,191 2,424,851 71,660
Public safety
Police 6,778,530 6,778,530 7,300,915 522,385
Fire 1,737,195 1,737,195 1,781,704 44,509
Total public safety 8,515,725 8,515,725 9,082,619 566,894
Public works
Engineering 506,144 506,144 486,431 (19,713)
Street maintenance 1,325,176 1,325,176 1,387,207 62,031
Total public works 1,831,320 1,831,320 1,873,638 42,318
Recreation
Park maintenance 1,313,738 1,313,738 1,394,199 80,461
Forestry 94,924 94,924 80,131 (14,793)
Recreation 1,160,949 1,160,949 1,159,004 (1,945)
Community center 704,890 704,890 740,435 35,545
Waterslide/swimming pool 386,012 386,012 495,498 109,486
Total recreation 3,660,513 3,660,513 3,869,267 208,754
Variance with
Final Budget
Budgeted Amounts
7.2
See notes to basic financial statements. 41
City of Crystal
Statement of Revenues, Expenditures, and
Changes in Fund Balances -
Budget and Actual - General Fund
Year Ended December 31, 2022
Original Final
Actual
Amounts
Expenditures (Continued)
Community development
Planning and code enforcement 742,832$ 742,832$ 735,304$ (7,528)$
Total expenditures 17,103,581 17,103,581 17,985,679 882,098
Excess of revenues
under expenditures (505,185) (505,185) (1,780,422) (1,275,237)
Other Financing Sources
Proceeds from sale of capital asset - - 3,185 3,185
Lease issuance - - 14,578 14,578
Transfers in 505,185 505,185 505,214 29
Total other financing
sources 505,185 505,185 522,977 17,792
Net change in fund balances -$ -$ (1,257,445) (1,257,445)$
Fund Balance
Beginning of year 7,769,538
End of year 6,512,093$
Budgeted Amounts Final Budget -
Positive
(Negative)
7.2
See notes to basic financial statements. 42
Water Sewer Storm Drainage Streetlights
Assets
Current assets
Cash and investments (including cash equivilants)2,600,753$ 504,001$ 850,152$ 859,123$
Special assessment receivable 387,089 17,380 - -
Accounts receivable 999,534 614,944 267,740 37,415
Advances to other funds - 30,000 - 30,000
Due from other governments 7,939 - - -
Inventories 63,406 12,570 2,367 -
Prepaid expenses 24,639 140,656 860 -
Total current assets 4,083,360 1,319,551 1,121,119 926,538
Noncurrent assets
Equity interest in joint venture 5,330,686 - - -
Advances to other funds 900,000 30,000 500,000 30,000
Capital assets
Land 42,200 - 716,861 -
Infrastructure 4,747,988 11,240,053 17,638,264 634,133
Buildings - - - -
Improvements other than buildings - - 187,246 16,861
Office equipment and furnishings - - - -
Software 29,445 - - -
Machinery and equipment 1,918,002 490,611 11,805 -
Vehicles - - - -
Construction in progress 808,217 879,845 1,994,127 -
Total capital assets 7,545,852 12,610,509 20,548,303 650,994
Less accumulated depreciation (3,109,621) (5,073,683) (7,259,941) (426,579)
Net capital assets 4,436,231 7,536,826 13,288,362 224,415
Total noncurrent assets 10,666,917 7,566,826 13,788,362 254,415
Total assets 14,750,277 8,886,377 14,909,481 1,180,953
Deferred Outflows of Resources
Pension-related deferred outflows 88,102 86,430 43,205 -
OPEB-related deferred outflows 12,304 12,304 6,152 -
Total deferred outflows of resources 100,406 98,734 49,357 -
Liabilities
Current liabilities
Accounts payable 12,760 18,443 3,273 12,694
Contracts payable - 72,996 90,871 -
Salaries and benefits payable 11,627 11,529 5,764 -
Deposits payable 1,300 - - -
Advances from other funds 60,000 - - -
Due to other governments 613,278 68 34 -
Current compensated absences 13,131 13,131 6,566 -
Total current liabilities 712,096 116,167 106,508 12,694
Noncurrent liabilities
Compensated absences 30,395 30,395 15,197 -
Advances from other funds 60,000 - - -
Net pension liability 298,247 292,588 146,259 -
Total OPEB liability 67,341 67,341 33,669 -
Total noncurrent liabilities 455,983 390,324 195,125 -
Total liabilities 1,168,079 506,491 301,633 12,694
Deferred Inflows of Resources
Pension-related deferred inflows 4,500 4,414 2,207 -
OPEB-related deferred intflows 34,523 34,523 17,260 -
Total deferred intflows of resources 39,023 38,937 19,467 -
Net Position
Net investment in capital assets 4,436,231 7,463,830 13,197,491 224,415
Unrestricted 9,207,350 975,853 1,440,247 943,844
Total net position 13,643,581$ 8,439,683$ 14,637,738$ 1,168,259$
City of Crystal
Statement of Net Position - Proprietary Funds
December 31, 2022
7.2
43
Recycling Utility Totals
127,514$ 4,941,543$ 5,618,019$
- 404,469 -
58,603 1,978,236 -
- 60,000 -
- 7,939 2,987,835
- 78,343 -
- 166,155 -
186,117 7,636,685 8,605,854
- 5,330,686 -
- 1,460,000 -
- 759,061 -
- 34,260,438 -
- - 18,932,040
- 204,107 552,237
- - 608,395
- 29,445 165,658
- 2,420,418 4,807,130
- - 4,058,053
- 3,682,189 17,136,743
- 41,355,658 46,260,256
- (15,869,824) (15,559,072)
- 25,485,834 30,701,184
- 32,276,520 30,701,184
186,117 39,913,205 39,307,038
- 217,737 -
- 30,760 -
- 248,497 -
16 47,186 533,989
- 163,867 1,077,615
- 28,920 -
- 1,300 -
- 60,000 85,572
- 613,380 5,668
- 32,828 -
16 947,481 1,702,844
- 75,987 -
- 60,000 7,570,000
- 737,094 -
- 168,351 -
- 1,041,432 7,570,000
16 1,988,913 9,272,844
- 11,121 -
- 86,306 -
- 97,427 -
- 25,321,967 29,623,569
186,101 12,753,395 410,625
186,101$ 38,075,362$ 30,034,194$
Governmental
Activities -
Internal Service
Funds
7.2
See notes to basic financial statements. 44
Water Sewer Storm Drainage
Operating revenues
Charges for services 5,032,917$ 3,347,460$ 1,365,594$
Other revenues 274,691 13,740 87
Miscellaneous - 3,136 -
Total operating revenues 5,307,608 3,364,336 1,365,681
Operating expenses
Personal services 431,782 400,051 199,935
Other services 370,794 332,904 249,976
Supplies 91,829 54,252 24,453
Water purchases 2,727,826 - -
Sewage disposal charges - 1,704,607 -
Electric service - - -
Recycling charges - - -
Depreciation 191,265 176,826 462,686
Equipment - - -
Total operating expenses 3,813,496 2,668,640 937,050
Operating income (loss)1,494,112 695,696 428,631
Nonoperating revenues (expenses)
Investment income (61,623) (15,245) (41,221)
Interest expense (3,600) - -
Gain on sale of capital assets - - -
Net income (loss) from joint venture 271,943 - -
Total nonoperating revenue (expenses)206,720 (15,245) (41,221)
Income before capital contributions and transfers 1,700,832 680,451 387,410
Capital contributions - 7,801 -
Transfers out (211,367) (211,367) (56,876)
Change in net position 1,489,465 476,885 330,534
Net position - beginning of year 12,154,116 7,962,798 14,307,204
Net position - end of year 13,643,581$ 8,439,683$ 14,637,738$
City of Crystal
Statement of Revenues, Expenses, and Changes
in Net Position - Proprietary Funds
Year Ended December 31, 2022
7.2
45
Streetlights Recycling Utility Totals
195,553$ 386,375$ 10,327,899$ 2,363,779$
2 - 288,520 -
- - 3,136 128,870
195,555 386,375 10,619,555 2,492,649
- - 1,031,768 -
30,810 63 984,547 1,155,156
- - 170,534 23,633
- - 2,727,826 -
- - 1,704,607 -
142,398 - 142,398 -
- 380,255 380,255 -
32,549 - 863,326 1,336,464
- - - 461,686
205,757 380,318 8,005,261 2,976,939
(10,202) 6,057 2,614,294 (484,290)
(14,820) (2,454) (135,363) (42,842)
- - (3,600) -
- - - 83,737
- - 271,943 -
(14,820) (2,454) 132,980 40,895
(25,022) 3,603 2,747,274 (443,395)
- - 7,801 6,826,342
(16,098) (9,506) (505,214) -
(41,120) (5,903) 2,249,861 6,382,947
1,209,379 192,004 35,825,501 23,651,247
1,168,259$ 186,101$ 38,075,362$ 30,034,194$
Governmental
Activities -
Internal Service
Funds
7.2
See notes to basic financial statements. 46
Water Sewer Storm Drainage Street Lights
Cash Flows - Operating Activities
Receipts from customers 5,253,366$ 3,296,925$ 1,338,599$ 192,407$
Interfund services provided and used - - - -
Payments to suppliers (2,941,451) (2,177,101) (164,499) (171,532)
Payments to employees (421,780) (390,454) (195,271) -
Miscellaneous revenue - - - -
Net cash flows - operating activities 1,890,135 729,370 978,829 20,875
Cash Flows - Noncapital
Financing Activities
Transfer to other funds (211,367) (211,367) (56,876) (16,098)
Cash Flows - Capital and Related
Financing Activities
Payments made on advance to other funds (960,000) - (500,000) -
Receipts from advance from other funds - 30,000 - 30,000
Receipts from special assessments - 11,945 - -
Payments on special assessments (2,474) - - -
Interest paid on debt (3,600) - - -
Proceeds from disposal of capital assets - - - -
Grants and contributions - - - -
Acquisition of capital assets (775,167) (1,034,951) (1,999,081) -
Net cash flows - capital and related
financing activities (1,741,241) (993,006) (2,499,081) 30,000
Cash Flows - Investing Activities
Interest and dividends received (61,623) (15,245) (41,221) (14,820)
Net change in cash and cash equivalents (124,096) (490,248) (1,618,349) 19,957
Cash and cash equivalents, January 1 2,724,849 994,249 2,468,501 839,166
Cash and cash equivalents, December 31 2,600,753$ 504,001$ 850,152$ 859,123$
Reconciliation of Operating
Income (Loss) to Net Cash
Flows - Operating Activities
Operating income (loss) 1,494,112$ 695,696$ 428,631$ (10,202)$
Adjustments to reconcile operating
income (loss) to net cash flows -
operating activities
Depreciation expense 191,265 176,826 462,686 32,549
Accounts receivable (123,445) (67,411) (27,082) (3,148)
Due from other governments 69,203 - - -
Prepaid items (1,282) (139,530) 31,409 -
Inventory (25,130) (4,895) (248) -
Accounts payable (36,239) (13,918) (2,674) 1,676
Contracts payable - 72,996 81,438 -
Due to other governmental units 312,949 9 5 -
Salaries payable 436 338 168 -
Deposits payable (1,300) - - -
OPEB (4,518) (3,100) (1,601) -
Pension related activity 15,862 14,137 6,986 -
Compensated absences payable (1,778) (1,778) (889) -
Total adjustments 396,023 33,674 550,198 31,077
Net cash flows -
operating activities 1,890,135$ 729,370$ 978,829$ 20,875$
Noncash Capital and Related
Financing Activities
Net income (loss) from joint venture 271,943$ -$ -$ -$
City of Crystal
Statement of Cash Flows - Proprietary Funds
Year Ended December 31, 2022
7.2
47
Recycling
Utility Totals
Internal Service
Funds
376,275$ 10,457,572$ -$
- - (587,964)
(380,349) (5,834,932) (2,452,357)
- (1,007,505) -
- - 92,778
(4,074) 3,615,135 (2,947,543)
(9,506) (505,214) -
- (1,460,000) -
- 60,000 7,655,572
- 11,945 -
- (2,474) -
- (3,600) -
- - 303,940
- - 6,826,342
- (3,809,199) (12,176,193)
- (5,203,328) 2,609,661
(2,454) (135,363) (42,842)
(16,034) (2,228,770) (380,724)
143,548 7,170,313 5,998,743
127,514$ 4,941,543$ 5,618,019$
6,057$ 2,614,294$ (484,290)$
- 863,326 1,336,464
(10,100) (231,186) -
- 69,203 (2,987,835)
- (109,403) -
- (30,273) -
(31) (51,186) (815,707)
- 154,434 -
- 312,963 3,825
- 942 -
- (1,300) -
- (9,219) -
- 36,985 -
- (4,445) -
(10,131) 1,000,841 (2,463,253)
(4,074)$ 3,615,135$ (2,947,543)$
-$ 271,943$ -$
7.2
See notes to basic financial statements. 48
Hennepin
Recycling
Group
Custodial Fund
Assets
Cash and investments
(including cash equivalents)428,417$
Liabilities
Accounts payable 100,957$
Due to other governments 88,280
Total liabilities 189,237$
Net Position
Held in custody for other governmental units 314,266$
Hennepin
Recycling
Group
Custodial Fund
Additions
Charges for serivces 1,024,148$
Investment income (10,342)
Intergovernmental 152,562
Refunds and reimbursements 483
Other income 318,074
Total additions 1,484,925
Deductions
Recycling services 1,266,406$
Administrative and grant services 21,015
Other contract and professional services 95,895
Office supplies 8,936
Rentals 19,131
Total deductions 1,411,383
Change in net position 73,542
Net Position
Beginning of year 240,724
End of year 314,266$
City of Crystal
Statement of Fiduciary Net Position
December 31, 2022
Statement of Changes Fiduciary Net Position
Year Ended December 31, 2022
7.2
49
City of Crystal
Notes to Basic 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.
7.2
50
City of Crystal
Notes to Basic 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.
7.2
51
City of Crystal
Notes to Basic 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.
7.2
52
City of Crystal
Notes to Basic 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.
7.2
53
City of Crystal
Notes to Basic 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.
7.2
54
City of Crystal
Notes to Basic 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.
7.2
55
City of Crystal
Notes to Basic 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
7.2
56
City of Crystal
Notes to Basic 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.
7.2
57
City of Crystal
Notes to Basic 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 assets 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.
7.2
58
City of Crystal
Notes to Basic 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 (Continued)
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 assets 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 four 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, grants received for subsequent years are presented
as deferred inflows of resources as time requirements have not been met. 4) Deferred inflows of
resources related to lease receivable is reported in both the government-wide Statement of Net
Position and the Governmental Funds Balance Sheet.
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.
7.2
59
City of Crystal
Notes to Basic 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 (Continued)
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.
7.2
60
City of Crystal
Notes to Basic 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 $3,002,571 and the bank balance was
$3,086,701. 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.
7.2
61
City of Crystal
Notes to Basic 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, 2022, the City had the following investments and maturities:
Fair Less than
Value One Year 1-5 Years 6-10 Years
Brokered certificates of deposit 14,557,361$ 3,542,443$ 10,497,701$ 517,217$
State and local government bonds 2,045,637 - 2,045,637 -
Money market accounts 10,463,482 10,463,482 - -
Total 27,066,480$ 14,005,925$ 12,543,338$ 517,217$
Investment Type
Investment Maturities
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."
7.2
62
City of Crystal
Notes to Basic 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, 2022, 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 – 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, 2022:
$16,602,998 of investments are valued using a matrix pricing model (Level 2 inputs)
The following summary reconciles cash and investments to the financial statements:
Cash on hand 2,069$
Carrying amount of deposits 3,002,571
Carrying amount of investments 27,066,480
Total 30,071,120$
Statement of Net Position
Cash and investments 29,482,929$
Cash with fiscal agent 159,774
Statement of Fiduciary Net Position
Cash and investments 428,417
Total deposits and investments 30,071,120$
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City of Crystal
Notes to Basic Financial Statements
NOTE 3 – INTERFUND RECEIVABLES AND PAYABLES
Advances to/from Other Funds
Balances as of December 31, 2022, are as follows:
Original Amount Due Within
Receivable Fund Payable Fund Amount Outstanding One Year
General Other Governmental Funds 13,778$ 13,778$ 13,778$
General Internal Service Funds 85,572 85,572 85,572
Street Reconstruction Internal Service Funds 5,000,000 5,000,000 -
Other Governmental Funds Internal Service Funds 1,170,000 1,170,000 -
Other Governmental Funds Other Governmental Funds 1,935 1,935 -
Water Internal Service Funds 900,000 900,000 -
Storm Water Internal Service Funds 500,000 500,000 -
Sanitary Sewer Water 300,000 60,000 30,000
Streetlights Water 300,000 60,000 30,000
Total 8,271,285$ 7,791,285$ 159,350$
Internal loans to the City Buildings Internal Service Fund totaling $7,570,000 were made to provide
sufficient cash to pay for the renovation and construction costs of the police department facility. It is
projected that these funds would be able to repay the loans with zero percent interest by 2032. There is a
$1,935 interfund loan between nonmajor governmental funds for tax increment financing purposes.
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 $0.21/thousand gallons of water used has been approved and implemented.
NOTE 4 – INTERFUND TRANSFERS
Interfund transfers for the year ended December 31, 2022, are as follows:
Transfers Out General
Water 211,367$
Sanitary sewer 211,367
Storm drainage 56,876
Streetlights 16,098
Recycling 9,506
Total 505,214$
Transfers In
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64
City of Crystal
Notes to Basic Financial Statements
NOTE 4 – INTERFUND TRANSFERS (CONTINUED)
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 and, 2) assist with capital needs.
NOTE 5 – LEASE RECEIVABLE
The City has various leases for land and site agreements. The lease agreements include annual principal
and interest payments. Interest and discount rates on the lease agreements range from 1.52% to 1.75%.
Revenue from these leases for the year ended December 31, 2022, was $73,104.
7.2
65
City of Crystal
Notes to Basic Financial Statements
NOTE 6 – CAPITAL ASSETS
Capital asset activity for the year ended December 31, 2022, was as follows:
Beginning Ending
Balance Increases Decreases Balance
Governmental activities
Capital assets not being depreciated
Land 6,860,536$ -$ -$ 6,860,536$
Construction in progress 5,588,836 11,844,999 (35,000) 17,398,835
Total capital assets
not being depreciated 12,449,372 11,844,999 (35,000) 24,259,371
Other capital assets
Buildings and structures 20,099,066 - - 20,099,066
Improvements other than buildings 7,098,607 35,000 - 7,133,607
Machinery and equipment 7,061,129 137,181 (337,341) 6,860,969
Office equipment and furnishings 1,037,420 - - 1,037,420
Software 312,937 - - 312,937
Vehicles and trailers 4,315,286 808,889 (347,837) 4,776,338
Traffic and transportation systems 69,999,114 1,208,055 - 71,207,169
Park systems 5,002,340 - (25,148) 4,977,192
Leased vehicles - 293,439 - 293,439
Total other capital assets
at historical cost 114,925,899 2,482,564 (710,326) 116,698,137
Less accumulated depreciation for
Buildings and structures (9,837,609) (610,530) - (10,448,139)
Improvements other than buildings (4,156,465) (243,977) - (4,400,442)
Machinery and equipment (4,296,551) (438,623) 141,384 (4,593,790)
Office equipment and furnishings (751,390) (70,111) - (821,501)
Software (309,165) (1,886) - (311,051)
Vehicles and trailers (2,633,699) (408,849) 323,591 (2,718,957)
Traffic and transportation systems (40,204,925) (2,440,403) - (42,645,328)
Park systems (470,664) (243,505) 25,148 (689,021)
Less accumulated amortization for
Leased vehicles - (52,277) - (52,277)
Total accumulated
depreciation and amortization (62,660,468) (4,510,161) 490,123 (66,680,506)
Total other capital assets, net 52,265,431 (2,027,597) (220,203) 50,017,631
Governmental activities capital
assets, net 64,714,803$ 9,817,402$ (255,203)$ 74,277,002$
7.2
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City of Crystal
Notes to Basic Financial Statements
NOTE 6 – CAPITAL ASSETS (CONTINUED)
Capital asset activity for the year ended December 31, 2022, 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 362,806 3,620,406 (301,023) 3,682,189
Total capital assets not
being depreciated 1,309,114 3,620,406 (301,023) 4,628,497
Other capital assets
Improvements other than buildings 16,861 - - 16,861
Machinery and equipment 2,231,625 188,793 - 2,420,418
Software 29,445 - - 29,445
Utility systems 32,589,263 301,023 - 32,890,286
Traffic and transportation systems 1,370,151 - - 1,370,151
Total capital assets
being depreciated 36,237,345 489,816 - 36,727,161
Less accumulated depreciation for
Improvements other than buildings (13,137) (843) - (13,980)
Machinery and equipment (1,299,963) (109,300) - (1,409,263)
Software (7,852) (5,889) - (13,741)
Utility systems (13,304,653) (715,588) - (14,020,241)
Traffic and transportation systems (380,893) (31,706) - (412,599)
Total accumulated
depreciation (15,006,498) (863,326) - (15,869,824)
Total other capital assets, net 21,230,847 (373,510) - 20,857,337
Business-type activities
capital assets, net 22,539,961$ 3,246,896$ (301,023)$ 25,485,834$
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City of Crystal
Notes to Basic Financial Statements
NOTE 6 – CAPITAL ASSETS (CONTINUED)
Depreciation and amortization expense was charged to the various functions of the City as follows:
Governmental activities
General government 234,406$
Public safety 681,093
Public works 2,653,765
Parks and recreation 895,641
Community development 45,256
Total depreciation and amortization expense - governmental activities 4,510,161$
Business-type activities
Water 191,265$
Sanitary sewer 176,826
Storm drainage 462,686
Street light 32,549
Total depreciation expense - business-type activities 863,326$
NOTE 7 – 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$ 02/01/25 160,000$
G.O. Improvement Bonds, Series 2011A 08/01/11 0.50%-3.55% 1,705,000 02/01/27 470,000
G.O. Improvement Bonds, Series 2012A 08/01/12 1.50%-2.13% 2,635,000 02/01/28 915,000
G.O. Improvement Bonds, Series 2013A 08/01/13 2.00%-3.50% 3,235,000 02/01/29 1,390,000
G.O. Improvement Bonds, Series 2015A 08/01/15 2.50%-3.00% 2,550,000 02/01/31 1,400,000
G.O. Improvement Bonds, Series 2016A 08/25/16 2.00%-2.50% 3,330,000 02/01/32 2,075,000
G.O. Improvement Bonds, Series 2017A 09/14/17 2.00%-3.00% 4,665,000 02/01/33 3,280,000
Subtotal bonds payable 9,690,000
Lease liability 249,834
Unamortized bond premiums/discounts 310,107
Compensated absences payable 917,956
Total governmental activities 11,167,897$
7.2
68
City of Crystal
Notes to Basic Financial Statements
NOTE 7 – 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, 2022, 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 - 2009A 320,000$ -$ (160,000)$ 160,000$ 160,000$
Improvement Bonds - 2011A 575,000 - (105,000) 470,000 100,000
Improvement Bonds - 2012A 1,080,000 - (165,000) 915,000 165,000
Improvement Bonds - 2013A 1,605,000 - (215,000) 1,390,000 210,000
Improvement Bonds - 2015A 1,575,000 - (175,000) 1,400,000 170,000
Improvement Bonds - 2016A 2,310,000 - (235,000) 2,075,000 230,000
Improvement Bonds - 2017A 3,595,000 - (315,000) 3,280,000 315,000
11,060,000 - (1,370,000) 9,690,000 1,350,000
Bond premiums 355,705 - (41,607) 314,098 -
Bond discounts (5,948) - 1,957 (3,991) -
Subtotal 11,409,757 - (1,409,650) 10,000,107 1,350,000
Total bonds payable 11,409,757 - (1,409,650) 10,000,107 1,350,000
Lease liability - 293,439 (43,605) 249,834 31,571
Compensated absences payable 957,521 813,321 (852,886) 917,956 324,984
Governmental activity
long-term liabilities 12,367,278$ 1,106,760$ (2,306,141)$ 11,167,897$ 1,706,555$
Business-type activities
Compensated absences payable 113,260$ 62,584$ (67,029)$ 108,815$ 32,828$
7.2
69
City of Crystal
Notes to Basic Financial Statements
NOTE 7 – 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 Principal Interest
2023 1,350,000$ 248,184$ 31,571$ 15,727$
2024 1,165,000 213,971 85,286 10,911
2025 1,150,000 182,765 89,168 5,476
2026 1,120,000 152,056 39,927 1,059
2027 1,090,000 122,151 3,882 7
2028-2032 3,535,000 255,719 - -
2033 280,000 4,200 - -
Total 9,690,000$ 1,179,046$ 249,834$ 33,180$
Lease Liability
Governmental ActivitiesGovernmental Activities
G.O. Improvement Bonds
Total delinquent special assessments receivable for all funds for the years ending December 31, 2022
and 2021, were $312,590 and $397,522, respectively.
Compensated absences are liquidated by the General, EDA, Water, Sanitary Sewer, or Storm Drainage
funds, depending upon where employees' time is assigned.
E. Lease Liability
The City entered into lease agreements for various vehicles. The lease agreements include annual
principal and interest payments as noted above. Interest and discount rates on the lease agreements range
from 4.85% to 7.75%.
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.
7.2
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City of Crystal
Notes to Basic Financial Statements
NOTE 8 – CONDUIT DEBT OBLIGATIONS (CONTINUED)
As of December 31, 2022, there were two debt issues outstanding. The aggregate original issue amounts
and principal balances outstanding as of December 31, 2022, are as follows:
Original Principal
Name of Issue Year Issue Balance
LOGIS Government Facilities Revenue Bonds 2006 $ 6,000,000 $ 1,723,079
Crystal Leased Housing Multi Family Housing 2014 14,300,000 13,050,000
Total $ 20,300,000 $ 14,773,079
NOTE 9 – PENSION PLANS
The City participates in various pension plans, total pension expense for the year ended December 31,
2022, was $1,870,364. 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.
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 local relief associations
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.
7.2
71
City of Crystal
Notes to Basic Financial Statements
NOTE 9 – PENSION PLANS (CONTINUED)
Public Employees' Retirement Association (Continued)
B. Benefits Provided (Continued)
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. 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.
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.
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. The postretirement increase is 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. 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.
7.2
72
City of Crystal
Notes to Basic Financial Statements
NOTE 9 – PENSION PLANS (CONTINUED)
Public Employees' Retirement Association (Continued)
C. Contributions (Continued)
General Employees Fund Contributions
Coordinated Plan members were required to contribute 6.5% of their annual covered salary in fiscal year
2022 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, 2022, were $364,350.
The City's contributions were equal to the required contributions as set by state statute.
Police and Fire Fund Contributions
Police and Fire Plan members were required to contribute 11.8% of their annual covered salary in fiscal
year 2022 and the City was required to contribute 17.7% for Police and Fire Plan members. The City's
contributions to the Police and Fire Fund for the year ended December 31, 2022, were $602,678. The
City's contributions were equal to the required contributions as set by state statute.
D. Pension Costs
General Employees Fund Pension Costs
At December 31, 2022, the City reported a liability of $5,029,221 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 $147,303.
The net pension liability was measured as of June 30, 2022, and the total pension liability used to
calculate the net pension liability was determined by an actuarial valuation as of that date. The City's
proportionate share of the net pension liability was based on the City's contributions received by PERA
during the measurement period for employer payroll paid dates from July 1, 2021, through June 30,
2022, relative to the total employer contributions received from all of PERA's participating employers.
The City's proportionate share was 0.0635%, at the end of the measurement period and 0.0656% for the
beginning of the period.
City's proportionate share of the net pension liability 5,029,221$
State of Minnesota's proportionate share of the net pension
liability associated with the City 147,303
Total 5,176,524$
7.2
73
City of Crystal
Notes to Basic Financial Statements
NOTE 9 – PENSION PLANS (CONTINUED)
Public Employees' Retirement Association (Continued)
D. Pension Costs (Continued)
General Employees Fund Pension Costs (Continued)
For the year ended December 31, 2022, the City recognized pension expense of $613,031 for its
proportionate share of General Employees Plan's pension expense. Included in the amount, the City
recognized $22,010 as pension expense (and grant revenue) for its proportionate share of the State of
Minnesota's contribution of $16 million to the General Employees Fund.
At December 31, 2022, the City reported its proportionate share of the General Employees Plan's
deferred outflows of resources and deferred inflows of resources, related to pensions from the following
sources:
Differences between expected and actual economic experience 42,009$ 55,357$
Changes in actuarial assumptions 1,174,709 20,520
Net collective difference between projected
and actual investment earnings 24,245 -
Changes in proportion 62,485 -
Contributions paid to PERA subsequent
to the measurement date 182,175 -
Total 1,485,623$ 75,877$
Deferred
Outflows of
Resources
Deferred
Inflows of
Resources
7.2
74
City of Crystal
Notes to Basic Financial Statements
NOTE 9 – PENSION PLANS (CONTINUED)
Public Employees' Retirement Association (Continued)
D. Pension Costs (Continued)
General Employees Fund Pension Costs (Continued)
The $182,175 reported as deferred outflows of resources related to pensions resulting from City
contributions subsequent to the measurement date will be recognized as a reduction of the net pension
liability in the year ended December 31, 2023. Other amounts reported as deferred outflows and
deferred inflows of resources related to pensions will be recognized in pension expense as follows:
Pension
Year Ending Expense
December 31, Amount
2023 447,600$
2024 461,767
2025 (136,614)
2026 454,817
Total 1,227,570$
Police and Fire Fund Pension Costs
At December 31, 2022, the City reported a liability of $12,080,055 for its proportionate share of the
Police and Fire Fund's net pension liability. The net pension liability was measured as of June 30, 2022,
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, 2021, through June 30, 2022, relative to the total employer contributions received from all
of PERA's participating employers. The City's proportionate share was 0.2776% at the end of the
measurement period and 0.2660% for the beginning of the period.
The State of Minnesota contributed $18 million to the Police and Fire Fund in the plan fiscal year ended
June 30, 2022. The contribution consisted of $9 million in direct state aid that does meet the definition
of a special funding situation and $9 million in supplemental state aid that does not meet the definition
of a special funding situation. The $9 million direct state aid was paid on October 1, 2021. 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 supplemental 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.
7.2
75
City of Crystal
Notes to Basic Financial Statements
NOTE 9 – PENSION PLANS (CONTINUED)
Public Employees' Retirement Association (Continued)
D. Pension Costs (Continued)
Police and Fire Fund Pension Costs (Continued)
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
(pension allocation schedules) for the $9 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, 2022, the City recognized pension expense of $1,255,087 for its proportionate
share of the Police and Fire Plan's pension expense. Included in this amount, the City recognized
$102,355 as pension expense (and grant revenue) for its proportionate share of the State of Minnesota's
contribution of $9 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 supplemental state aid. The City also
recognized $24,984 for the year ended December 31, 2022, as revenue and an offsetting reduction of the
net pension liability for its proportionate share of the State of Minnesota's on-behalf contributions to the
Police and Fire Fund.
At December 31, 2022, the City reported its proportionate share of the Police and Fire Plan's deferred
outflows of resources and deferred inflows of resources related to pensions from the following sources.
Differences between expected and actual economic experience 728,546$ -$
Changes in actuarial assumptions 7,005,691 72,957
Net collective difference between projected
and actual investment earnings 307,783 -
Changes in proportion 145,931 147,628
Contributions paid to PERA subsequent
to the measurement date 301,339 -
Total 8,489,290$ 220,585$
Deferred
Outflows of
Resources
Deferred
Inflows of
Resources
7.2
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City of Crystal
Notes to Basic Financial Statements
NOTE 9 – PENSION PLANS (CONTINUED)
Public Employees' Retirement Association (Continued)
D. Pension Costs (Continued)
Police and Fire Fund Pension Costs (Continued)
The $301,339 reported as deferred outflows of resources related to pensions resulting from City
contributions subsequent to the measurement date will be recognized as a reduction of the net pension
liability in the year ended December 31, 2023. Other amounts reported as deferred outflows and inflows
of resources related to pensions will be recognized in pension expense as follows:
Pension
Year Ending Expense
December 31, Amount
2023 1,577,719$
2024 1,553,308
2025 1,377,183
2026 2,439,151
2027 1,010,005
Total 7,957,366$
E. Long-Term Expected Return on Investment
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:
Domestic equity 33.5 %5.10 %
International equity 16.5 5.30
Fixed income 25.0 0.75
Private markets 25.0 5.90
Total 100.0 %
Target Allocation
Long-Term
Expected Real
Rate of ReturnAsset Class
7.2
77
City of Crystal
Notes to Basic Financial Statements
NOTE 9 – PENSION PLANS (CONTINUED)
Public Employees' Retirement Association (Continued)
F. Actuarial Methods and Assumptions
The total pension liability in the June 30, 2022, actuarial valuation was determined using an individual
entry-age normal actuarial cost method. The long-term rate of return on pension plan investments used
in the determination of the total liability is 6.5%. This assumption is based on a review of inflation and
investments return assumptions from a number of national investment consulting firms. The review
provided a range of return investment return rates deemed to be reasonable by the actuary. An
investment return of 6.5% was deemed to be within that range of reasonableness for financial reporting
purposes.
Inflation is assumed to be 2.25% for the General Employees Plan and 2.25% for the Police and Fire
Plan. Benefit increases after retirement are assumed to be 1.25% for the General Employees. The Police
and Fire Plan benefit increase is fixed at 1% per year and that increase was used in the valuation.
Salary growth assumptions in the General Employees Plan range in annual increments from 10.25%
after one year of service to 3.0% after 27 years of service. In the Police and Fire Plan, salary growth
assumptions range from 11.75% after one year of service to 3.0% after 24 years of service.
Mortality rates for the General Employees Plan are based on the Pub-2010 General Employee Mortality
Table. Mortality rates for the Police and Fire Plan are based on the Pub-2010 Public Safety Employee
Mortality tables. The tables are adjusted slightly to fit PERA's experience.
Actuarial assumptions for the General Employees Plan are reviewed every four years. The most recent
four-year experience study for 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 the Police and Fire Plan was completed in 2020 and was
adopted by the Board and became effective with the July 1, 2021, actuarial valuation.
The following changes in actuarial assumptions and plan provisions occurred in 2022:
General Employees Fund
Changes in Actuarial Assumptions
The mortality improvement scale was changed from scale MP-2020 to scale MP-2021.
Changes in Plan Provisions
There have been no changes since the previous valuation.
Police and Fire Fund
Changes in Actuarial Assumptions
The mortality improvement scale was changed from MP-2020 to MP-2021.
The single discount rate was changed from 6.5% to 5.4%.
7.2
78
City of Crystal
Notes to Basic Financial Statements
NOTE 9 – PENSION PLANS (CONTINUED)
Public Employees' Retirement Association (Continued)
F. Actuarial Methods and Assumptions (Continued)
Police and Fire Fund (Continued)
Changes in Plan Provisions
There have been no changes since the previous valuation.
G. Discount Rate
The discount rate for the General Employees Plan used to measure the total pension liability in 2022 was
6.5%. 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 was 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.
In the Police and Fire Fund, the fiduciary net position was projected to be available to make all projected
future benefit payments of current plan members through June 30, 2060. Beginning in the fiscal year
ended June 30, 2061, projected benefit payments exceed the fund's projected fiduciary net position.
Benefit payments projected after were discounted at the municipal bond rate of 3.69% (based on the
weekly rate closest to but not later than the measurement date of the Fidelity "20-Year Municipal GO
AA Index"). The resulting equivalent single discount rate of 5.4% for the Police and Fire Fund was
determined to give approximately the same present value of projected benefits when applied to all years
of projected benefits as the present value of projected benefits using 6.5% applied to all years of
projected benefits through the point of asset depletion and 3.69% thereafter.
7.2
79
City of Crystal
Notes to Basic Financial Statements
NOTE 9 – PENSION PLANS (CONTINUED)
Public Employees' Retirement Association (Continued)
H. 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 Current 1% Increase in
City's proportionate share of
the General Employees Fund
net pension liability 7,943,918$ 5,029,221$ 2,638,720$
1% Decrease in Current 1% Increase in
City's proportionate share of
the Police and Fire Fund
net pension liability (asset) 18,281,614$ 12,080,055$ 7,066,466$
Discount Rate
(5.5%)
Discount Rate
(6.5%)
Discount Rate
(7.5%)
Discount Rate
(4.4%)
Discount Rate
(5.4%)
Discount Rate
(6.4%)
I. 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.
7.2
80
City of Crystal
Notes to Basic Financial Statements
NOTE 9 – PENSION PLANS (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 2022 were:
2,246$ 2,246$ 5% 5% 5%
Contribution Amount Percentage of Covered Payroll
Employee Employer Employee Employer Required Rate
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. No assets
are accumulated in a trust.
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.
7.2
81
City of Crystal
Notes to Basic 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 2022, the City contributed $115,716 to the plan.
D. Members
As of January 1, 2022, the following were covered by the benefit terms:
Total employees without coverage 11
Employees with coverage 86
Total 97
E. Actuarial Assumptions
The total OPEB liability was determined by an actuarial valuation as of January 1, 2022, using the
following actuarial assumptions, applied to all periods included in the measurement, unless otherwise
specified:
Discount Rate 2.06%
Salary increases including inflation Based on the PERA Plan in which the
employee is a participant.
Healthcare cost trend increases 6.2% for FY2022, gradually decreasing over
ten years to an ultimate rate of 3.9% in
FY2075 and later years.
Mortality assumption PERA Coordinated: Rates from the most recent
PERA experience study from July 1,
2014 through June 30, 2018.
PERA Police and Fire: Rates from the most
recent PERA experience study from
July 1, 2015 through June 30, 2019.
Key Methods and Assumptions Used in Valuation of Total OPEB Liability
The actuarial assumptions used in the January 1, 2022, valuation were based on the results of an
actuarial experience study for the period January 1, 2021 – December 31, 2021.
F. Total OPEB Liability
The City's total OPEB liability of $1,827,197 was measured as of December 31, 2022, and was
determined by an actuarial valuation as of that date.
7.2
82
City of Crystal
Notes to Basic Financial Statements
NOTE 10 – POST EMPLOYMENT HEALTH CARE PLAN (CONTINUED)
F. Total OPEB Liability (Continued)
Changes in the total OPEB liability are as follows:
Total
OPEB
Liability
Balances at January 1, 2022 1,969,801$
Changes for the year
Service cost 128,242
Interest 43,252
Differences between expected and actual
economic experience 9,194
Changes of assumptions (207,576)
Benefit payments (115,716)
Net changes (142,604)
Balances at December 31, 2022 1,827,197$
G. OPEB Liability Sensitivity
The following presents the City's total OPEB liability calculated using the discount rate of 2.06% as well
as the liability measured using 1% lower and 1% higher than the current discount rate.
1% decrease Current 1% increase
(1.06%)(2.06%)(3.06%)
1,997,484$ 1,827,197$ 1,671,052$
Total OPEB Liability/(Asset)
7.2
83
City of Crystal
Notes to Basic 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
1,601,043$ 1,827,197$ 2,096,522$
Total OPEB Liability/(Asset)
(5.2% decreasing to
2.9%)
(6.2% decreasing to
3.9%)
(7.2% decreasing to
4.9%)
H. OPEB Expense and Deferred Outflows of Resources and Deferred Inflows of Resources
Related to OPEB
For the year ended December 31, 2022, the City recognized OPEB expense of $63,844. At
December 31, 2022, the City reported deferred outflows of resources and deferred inflows of resources
as shown below.
Deferred Deferred
Outflows of Inflows of
Resources Resources
Differences between expected and actual economic experience -$ 663,892$
Changes in actuarial assumptions 246,519 272,830
Contributions made subsequent to the
measurement date 87,336 -
Total 333,855$ 936,722$
7.2
84
City of Crystal
Notes to Basic Financial Statements
NOTE 10 – POST EMPLOYMENT HEALTH CARE PLAN (CONTINUED)
H. OPEB Expense and Deferred Outflows of Resources and Deferred Inflows of Resources
Related to OPEB (Continued)
The $87,336 reported as deferred outflows of resources resulting from contributions subsequent to the
measurement date will be recognized as a reduction of the OPEB liability in the year ended
December 31, 2023. Other amounts reported as deferred outflows of resources will be recognized in
OPEB expense as follows:
(107,650)$
(107,650)
(107,650)
(110,977)
(111,089)
(145,187)
Total (690,203)$
2023
2024
2025
2026
2027
Thereafter
7.2
85
City of Crystal
Notes to Basic Financial Statements
NOTE 11 – FUND BALANCES
A. Classifications
A summary of governmental fund balance classifications at December 31, 2022, is as follows:
Capital
Project
Fund
General Debt Street Other
Fund Service Reconstruction Funds Total
Fund balances
Nonspendable
Inventory 32,686$ -$ -$ -$ 32,686$
Prepaid items 2,652 - - - 2,652
Total nonspendable 35,338 - - - 35,338
Restricted
Housing and Redevelopment
Assistance - - - 885,615 885,615
Debt service - 4,051,763 - - 4,051,763
DWI-related enforcement,
Training, and education - - - 88,055 88,055
Total restricted - 4,051,763 - 973,670 5,025,433
Committed
Compensated absences 917,956 - - - 917,956
Housing and redevelopment
Assistance - - - 2,232,803 2,232,803
Capital outlay - street
reconstruction - - 6,623,565 - 6,623,565
Capital outlay - police equipment - - - 2,753,628 2,753,628
Capital outlay - cable TV equipment - - - 299,790 299,790
Capital outlay - park improvement - - - 1,359,410 1,359,410
Total committed 917,956 - 6,623,565 6,645,631 14,187,152
Assigned
Police Department purposes - - - 99,634 99,634
Unassigned 5,558,799 - - - 5,558,799
Total fund balances 6,512,093$ 4,051,763$ 6,623,565$ 7,718,935$ 24,906,356$
Major Funds
7.2
86
City of Crystal
Notes to Basic 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 2022. There were no significant reductions in insurance
coverage during 2022.
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 $119,742 is included in accounts payable of the
Self-Insurance Fund at December 31, 2022. 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 $75,000 if claims are
open from more than one year.
Changes in claims liability for 2021 and 2020 are as follows:
Year
Claims Liability
Beginning of
Year
Current Year
Claims and
Changes in
Estimates
Payments on
Claims
Claims Liability
End of Year
2021 20,674$ 164,278$ 2,461$ 182,491$
2022 182,491 (61,649) 1,100 119,742
7.2
87
City of Crystal
Notes to Basic 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, 2022, is
$5,330,686.
Due to concurrent timing of the City's fiscal year end and audit of the JWC, the City reports its
equity interest in the JWC with a one-year lag. The following financial information is from the
JWC's audited financial statements for the year ended December 31, 2021:
Total assets 20,370,794$
Total liabilities 940,445
Net position
Net investment in capital assets 11,760,863
Restricted for capital improvements 4,936,435
Restricted for emergency water supply 1,700,000
Unrestricted 1,033,051
Total net position 19,430,349$
Total program expenses 8,851,973$
Total program revenues 9,703,304
Net program revenue 851,331
Total general revenues 148,600
Change in net position 999,931
Net position
Beginning of year 18,430,418
End of year 19,430,349$
7.2
88
City of Crystal
Notes to Basic 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, 2021, is $1,277,625.
Due to concurrent timing of the City's fiscal year end and audit of the District, the City reports its
equity interest in the District with a one-year lag. The following financial information is from the
District's audited financial statements for the year ended December 31, 2021:
Total assets and deferred outflows of resources 7,530,348$
Total liabilities and deferred inflows of resources 5,603,068
Net position
Net investment in capital assets 1,127,486
Restricted for donor-approved purposes 171,159
Unrestricted 628,635
Total net position 1,927,280$
Total program expenses 2,894,852$
Total program revenues 3,491,789
Net program expense 596,937
Total general revenues 67,496
Change in net position 664,433
Net position
Beginning of year 1,262,847
End of year 1,927,280$
7.2
89
City of Crystal
Notes to Basic 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 49.4%.
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 2022 was $719,532 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 2022 was $24,182.
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 2022 was $9,628.
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 2022 was $29,192.
7.2
90
City of Crystal
Notes to Basic 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 2022 was $380,255.
Accounting services for HRG were provided by the City, which has reported the financial accounts
of HRG in a Custodial 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, 2022, outstanding commitments for these multi-year projects
total approximately $1,045,635 and will be paid by the City Buildings Internal Service Fund and utility
funds.
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, 2022, will not have
a material adverse effect on the financial condition of the City.
NOTE 15 – FACILITY USE AGREEMENT
On August 24, 2004, the City entered into a licensor-licensee relationship with ISD 281. Per terms of the
agreement, the City contributed $900,000 towards the cost of constructing and equipping a gymnasium.
In return, the City is entitled to use the space for public recreation as well as for programs and services
for its residents. The agreement is for a term of 40 years, running from September 1, 2005, through
August 31, 2045. ISD 281 has title to the property and is responsible for all subsequent operations and
maintenance costs.
NOTE 16 – NEW STANDARDS ISSUED BUT NOT YET IMPLEMENTED
GASB Statement No. 96, Subscription-Based Information Technology Arrangements establishes that a
Subscription-Based Information Technology Arrangement (SBITA) results in a right-to-use subscription
asset and a corresponding liability. Under this statement, a governmental entity generally should
recognize a right-to-use subscription asset – an intangible asset – and a corresponding subscription
liability. This statement will be effective for the year ending December 31, 2023.
7.2
91
REQUIRED SUPPLEMENTARY INFORMATION
7.2
See notes to required supplementary information. 92
December 31, December 31, December 31, December 31, December 31,
2018 2019 2020 2021 2022
Total OPEB Liability
Service cost 105,872$ 116,648$ 87,322$ 109,504$ 128,242$
Interest 89,846 89,084 103,548 50,755 43,252
Differences between expected
and actual experience - - (1,025,507) 18,627 9,194
Changes of assumptions 84,810 (161,829) 208,602 91,065 (207,576)
Benefit payments (77,076) (79,989) (64,991) (86,024) (115,716)
Net change in total OPEB liability 203,452 (36,086) (691,026) 183,927 (142,604)
Beginning of year 2,309,534 2,512,986 2,476,900 1,785,874 1,969,801
End of year 2,512,986$ 2,476,900$ 1,785,874$ 1,969,801$ 1,827,197$
6,600,000$ 6,800,000$ 7,300,000$ 7,600,000$ 7,900,000$
38.1% 36.4% 24.5% 25.9% 23.1%
City of Crystal
Schedule of Changes in Total OPEB Liability
and Related Ratios
Covered-employee payroll
Total OPEB liability as a percentage of
covered-employee payroll
Note: Schedule is intended to show ten year trend. Additional years will be reported as they become available.
No assets are accumulated in a trust.
7.2
See notes to required supplementary information. 93
December 31, December 31, December 31, December 31, December 31,
2018 2019 2020 2021 2022
Actuarially determined contribution 77,076$ 79,989$ 64,991$ 86,024$ 115,716$
Contributions in relation to the actuarially
determined contribution 77,076 79,989 64,991 86,024 115,716
Contribution deficiency (excess)-$ -$ -$ -$ -$
6,600,000$ 6,800,000$ 7,300,000$ 7,600,000$ 7,900,000$
1.17% 1.18% 0.89% 1.13% 1.46%
Schedule of Employer Contributions - OPEB
Covered-employee payroll
Contributions as a percentage of covered-
City of Crystal
Note: Schedule is intended to show ten year trend. Additional years will be reported as they become available.
No assets are accumulated in a trust.
7.2
See notes to required supplementary information. 94
City's Covered
Payroll
2022 0.0635% 5,029,221$ 147,303$ 5,176,524$ 4,753,680$ 105.80% 76.67%
2021 0.0656% 2,801,414 85,545 2,886,959 4,720,680 59.34% 87.00%
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-
employee
Payroll
Plan Fiduciary
Net Position
as a
Percentage of
the Total
Pension
Liability
2022 0.2776% 12,080,055$ 527,674$ 12,607,729$ 3,371,842$ 358.26% 70.53%
2021 0.2660% 2,029,298 92,288 2,121,586 3,143,531 64.55% 93.66%
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.
City of Crystal
Schedule of City's Proportionate Share
of Net Pension Liability
General Employees Retirement Fund
Last Ten Years
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-
employee
Payroll
Plan Fiduciary
Net Position
as a
Percentage of
the Total
Pension
Liability
7.2
See notes to required supplementary information. 95
2022 364,350$ 364,350$ -$ 4,858,000$ 7.50%
2021 355,386 355,386 - 4,738,480 7.50%
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.
2022 602,678$ 602,678$ -$ 3,404,960$ 17.70%
2021 572,130 572,130 - 3,232,373 17.70%
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.
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-
employee
Payroll
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-
employee
Payroll
Contribution
Deficiency
(Excess)
Last Ten Years
7.2
96
7.2
City of Crystal
Notes to Required Supplementary Information
97
2022 Changes
Changes in Actuarial Assumptions
The mortality improvement scale was changed from scale MP-2020 to scale MP-2021.
Changes in Plan Provisions
There have been no changes since the prior valuation.
2021 Changes
Changes in Actuarial Assumptions
The investment return and single discount rates were changed from 7.5% to 6.5% for financial
reporting purposes.
The mortality improvement scale was changed from scale MP-2019 to scale MP-2020.
Changes in Plan Provisions
There have been no changes since the prior valuation.
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.
7.2
City of Crystal
Notes to Required Supplementary Information
98
General Employees Fund (Continued)
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.
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.
7.2
City of Crystal
Notes to Required Supplementary Information
99
General Employees Fund (Continued)
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.
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.
7.2
City of Crystal
Notes to Required Supplementary Information
100
Police and Fire Fund
2022 Changes
Changes in Actuarial Assumptions
The mortality improvement scale was changed from scale MP-2020 to scale MP-2021.
The single discount rate was changed from 6.5% to 5.4%.
Changes in Plan Provisions
There have been no changes since the prior valuation.
2021 Changes
Changes in Actuarial Assumptions
The investment return and single discount rates were changed from 7.5% to 6.5% for financial
reporting purposes.
The inflation assumption was changed from 2.5% to 2.25%.
The payroll growth assumption was changed from 3.25% to 3.0%.
The base mortality table for healthy annuitants and employees was changed from the RP-2014
table to the Pub-2010 Public Safety mortality table. The mortality improvement scale was
changed from MP-2019 to MP-2020.
The base mortality table for disabled annuitants was changed from the RP-2014 healthy
annuitant mortality table (with future mortality improvement according to scale MP-2019) to the
Pub-2010 Public Safety disabled annuitant mortality table (with future mortality improvement
according to scale MP-2020).
Assumed rates of salary increase were modified as recommended in the July 14, 2020,
experience study. The overall impact is a decrease in gross salary increase rates.
Assumed rates of retirement were changed as recommended in the July 14, 2020, experience
study. The changes resulted in slightly more unreduced retirements and fewer assumed early
retirements.
Assumed rates of withdrawal were changed from select and ultimate rates to service-based rates.
The changes resulted in more assumed terminations.
Assumed rates of disability were increased for ages 25-44 and decreased for ages over 49.
Overall, proposed rates resulted in more projected disabilities.
Assumed percent married for active female members was changed from 60% to 70%. Minor
changes to form of payment assumptions were applied.
Changes in Plan Provisions
There have been no changes since the prior valuation.
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.
7.2
City of Crystal
Notes to Required Supplementary Information
101
Police and Fire Fund (Continued)
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.
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.
7.2
City of Crystal
Notes to Required Supplementary Information
102
Police and Fire Fund (Continued)
2017 Changes (Continued)
Changes in Actuarial Assumptions (Continued)
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 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.
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%.
7.2
City of Crystal
Notes to Required Supplementary Information
103
Post Employment Health Care Plan
2022 Changes
Changes in Actuarial Assumptions
The discount rate was decreased from 2.12% in 2021 to 2.06% in 2022.
Medical trend was updated based on recently published trend model and trend
surveys to better reflect future anticipated experience.
Medical per capita claims tables were updated based on recent experience and
demographics.
Withdrawal, retirement, mortality, disability, and salary scale assumptions were
updated to those included in the recently published PERA actuarial valuations.
Future retiree participation rates were updated from 75% to 65% based on analysis of
past plan experience.
Future retiree spouse participation rates were updated from 40% for PERA
Coordinated and 60% for PERA Police and Fire to 40% for all participants based on
analysis of past plan experience.
Future retiree medical plan blending was updated based on an analysis of medical
plan election rates as of the valuation date.
2021 Changes
There have been no changes since the prior valuation.
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.
7.2
104
SUPPLEMENTARY INFORMATION
7.2
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.
7.2
106
TIF Districts
Special Revenue Special Projects EDA Total
Assets
Cash and investments 898,933$ 189,709$ 1,971,841$ 3,060,483$
Accounts receivable 22,874 - - 22,874
Taxes receivable - - 4,327 4,327
Special assessments receivable - - 91,336 91,336
Advances to other funds - - 1,935 1,935
Land held for resale - - 271,000 271,000
Total assets 921,807$ 189,709$ 2,340,439$ 3,451,955$
Liabilities
Accounts payable 20,479$ 2,020$ 4,348$ 26,847$
Advances from other funds 15,713 - - 15,713
Due to other governments - - 1,170 1,170
Salaries and benefits payable - - 4,577 4,577
Deposits payable - - 2,000 2,000
Total liabilities 36,192 2,020 12,095 50,307
Deferred Inflows of Resources
Unavailable revenue - property taxes - - 4,205 4,205
Unavailable revenue - special assessments - - 91,336 91,336
Total deferred inflows of resources - - 95,541 95,541
Fund Balances
Restricted 885,615 88,055 - 973,670
Committed - - 2,232,803 2,232,803
Assigned - 99,634 - 99,634
Total fund balances 885,615 187,689 2,232,803 3,306,107
Total liabilities, deferred inflow of
resouces, and fund balances 921,807$ 189,709$ 2,340,439$ 3,451,955$
December 31, 2022
Special Revenue
City of Crystal
Combining Balance Sheet -
Nonmajor Governmental Funds
7.2
107
Cable TV
Equipment
Park
Improvement
Police
Equipment
Revolving Total
Total
Governmental
Funds
299,823$ 1,291,162$ 1,613,600$ 3,204,585$ 6,265,068$
- 80,000 - 80,000 102,874
- 1,682 - 1,682 6,009
- - - - 91,336
- - 1,170,000 1,170,000 1,171,935
- - - - 271,000
299,823$ 1,372,844$ 2,783,600$ 4,456,267$ 7,908,222$
33$ 11,809$ 29,952$ 41,794$ 68,641$
- - - - 15,713
- - 20 20 1,190
- - - - 4,577
- - - - 2,000
33 11,809 29,972 41,814 92,121
- 1,625 - 1,625 5,830
- - - - 91,336
- 1,625 - 1,625 97,166
- - - - 973,670
299,790 1,359,410 2,753,628 4,412,828 6,645,631
- - - - 99,634
299,790 1,359,410 2,753,628 4,412,828 7,718,935
299,823$ 1,372,844$ 2,783,600$ 4,456,267$ 7,908,222$
Capital Projects
7.2
108
TIF Districts
Special Revenue Special Projects EDA Total
Revenues
Property taxes 348,352$ -$ 311,727$ 660,079$
Special assessments - - 32,839 32,839
Intergovernmental - - 12,500 12,500
Fine and forfeitures - 4,440 - 4,440
Miscellaneous
Interest (15,684) - (39,171) (54,855)
Other 22,877 100,653 2,033 125,563
Total revenues 355,545 105,093 319,928 780,566
Expenditures
Current
General government - 58,884 - 58,884
Public safety - 16,994 - 16,994
Recreation - 1,841 - 1,841
Economic development 267,000 - 397,375 664,375
Debt service
Principal - - - -
Interest and other charges - - - -
Capital outlay - 29,350 - 29,350
Total expenditures 267,000 107,069 397,375 771,444
Excess of revenues over
(under) expenditures 88,545 (1,976) (77,447) 9,122
Other Financing Sources (Uses)
Proceeds from sale of capital asset - - - -
Lease issuance - - - -
Total other financing
sources (uses)- - - -
Net change in fund balances 88,545 (1,976) (77,447) 9,122
Fund Balances
Beginning of year 797,070 189,665 2,310,250 3,296,985
End of year 885,615$ 187,689$ 2,232,803$ 3,306,107$
Special Revenue
City of Crystal
Combining Statement of Revenues, Expenditures, and Changes
in Fund Balances - Nonmajor Governmental Funds
Year Ended December 31, 2022
7.2
109
Cable TV
Equipment
Park
Improvement
Police
Equipment
Revolving Total
Total Other
Governmental
Funds
-$ 607,175$ 158,037$ 765,212$ 1,425,291$
- - - - 32,839
34,390 80,000 - 114,390 126,890
- - - - 4,440
-
(5,249) (24,514) (65,484) (95,247) (150,102)
- 3,771 23 3,794 129,357
29,141 666,432 92,576 788,149 1,568,715
800 - - 800 59,684
- - 1,972 1,972 18,966
- 1,201 - 1,201 3,042
- - - - 664,375
- - 43,605 43,605 43,605
- - 9,704 9,704 9,704
- 557,710 409,843 967,553 996,903
800 558,911 465,124 1,024,835 1,796,279
28,341 107,521 (372,548) (236,686) (227,564)
- 11,492 12,572 24,064 24,064
- - 293,439 293,439 293,439
- 11,492 306,011 317,503 317,503
28,341 119,013 (66,537) 80,817 89,939
271,449 1,240,397 2,820,165 4,332,011 7,628,996
299,790$ 1,359,410$ 2,753,628$ 4,412,828$ 7,718,935$
Capital Projects
7.2
110
Original Final
Actual
Amounts
Revenues
Property taxes 358,753$ 358,753$ 348,352$ (10,401)$
Interest 18,875 18,875 (15,684) (34,559)
Miscellaneous revenues - - 22,877 22,877
Total revenues 377,628 377,628 355,545 (22,083)
Expenditures
Current
Community development 291,848 291,848 267,000 (24,848)
Net change in fund balances 85,780$ 85,780$ 88,545 2,765$
Fund Balance
Beginning of year 797,070
End of year 885,615$
Budgeted Amounts
Variance with
Final Budget
City of Crystal
Schedule of Revenues, Expenditures, and
Changes in Fund Balances -
Budget and Actual
TIF Districts - Special Revenue
Year Ended December 31, 2022
7.2
111
Original Final
Actual
Amounts
Revenues
Property taxes 310,000$ 310,000$ 311,727$ 1,727$
Special assessments - - 32,839 32,839
Intergovernmental - - 12,500 12,500
Investment income 8,000 8,000 (39,171) (47,171)
Miscellaneous revenues - - 2,033 2,033
Total revenues 318,000 318,000 319,928 1,928
Expenditures
Current
Community development 384,390 384,390 397,375 12,985
Net change in fund balances (66,390)$ (66,390)$ (77,447) (11,057)$
Fund Balances
Beginning of year 2,310,250
End of year 2,232,803$
Budgeted Amounts
Variance with
Final Budget
City of Crystal
Schedule of Revenues, Expenditures, and
Changes in Fund Balances -
Budget and Actual - EDA - Special Revenue
Year Ended December 31, 2022
7.2
112
City of Crystal
Schedule of Revenues, Expenditures, and
Changes in Fund Balances -
Budget and Actual
Street Reconstruction - Capital Projects
Year Ended December 31, 2022
Original Final
Actual
Amounts
Revenues
Property taxes 245,926$ 245,926$ 245,926$ -$
Special assessments 230,000 230,000 411,314 181,314
Intergovernmental 230,000 230,000 590,323 360,323
Investment income 75,000 75,000 (184,568) (259,568)
Miscellaneous revenues - - 574 574
Total revenues 780,926 780,926 1,063,569 282,643
Expenditures
Public works - capital outlay 1,577,690 1,577,690 1,132,184 (445,506)
Net change in fund balances (796,764)$ (796,764)$ (68,615) 728,149$
Fund Balance
Beginning of year 6,692,180
End of year 6,623,565$
Budgeted Amounts
Variance with
Final Budget
7.2
113
City of Crystal
Schedule of Revenues, Expenditures, and
Changes in Fund Balances -
Budget and Actual
Park Improvement - Capital Projects
Year Ended December 31, 2022
Original Final
Actual
Amounts
Revenues
Property taxes 606,999$ 606,999$ 607,175$ 176$
Intergovernmental - - 80,000 80,000
Interest 13,000 13,000 (24,514) (37,514)
Miscellaneous revenues - - 3,771 3,771
Total revenues 619,999 619,999 666,432 46,433
Expenditures
Current
Park and recreation - - 1,201 1,201
Capital outlay
Park and recreation 910,000 910,000 557,710 (352,290)
Total expenditures 910,000 910,000 558,911 (351,089)
Excess of revenues over
(under) expenditures (290,001) (290,001) 107,521 397,522
Other financing uses
Proceeds from sale of capital asset 24,000 24,000 11,492 (12,508)
Net change in fund balances (266,001)$ (266,001)$ 119,013 385,014$
Fund Balance
Beginning of year 1,240,397
End of year 1,359,410$
Budgeted Amounts
Variance with
Final Budget
7.2
114
City of Crystal
Schedule of Revenues, Expenditures, and
Changes in Fund Balances -
Budget and Actual
Police Equipment Revolving - Capital Projects
Year Ended December 31, 2022
Original Final
Actual
Amounts
Revenues
Property taxes 161,197$ 161,197$ 158,037$ (3,160)$
Interest 20,000 20,000 (65,484) (85,484)
Miscellaneous revenues - - 23 23
Total revenues 181,197 181,197 92,576 (88,621)
Expenditures
Current
Public safety - - 1,972 1,972
Debt service:
Principal - - 43,605 43,605
Interest and other charges - - 9,704 9,704
Capital outlay 217,508 217,508 409,843 192,335
Total expenditures 217,508 217,508 465,124 247,616
Excess of revenues
under expenditures (36,311) (36,311) (372,548) (336,237)
Other Financing Sources
Proceeds from sale of capital asset 15,000 15,000 12,572 (2,428)
Lease issuance - - 293,439 293,439
Total other financing
sources (uses) 15,000 15,000 306,011 291,011
Net change in fund balances (21,311)$ (21,311)$ (66,537) (45,226)$
Fund Balance
Beginning of year 2,820,165
End of year 2,753,628$
Budgeted Amounts
Variance with
Final Budget
7.2
115
Self
Insurance Fleet
Information
Technology
City
Buildings Totals
Assets
Current assets
Cash and investments
(including cash equivilants) 356,411$ 2,668,995$ -$ 2,592,613$ 5,618,019$
Due from other governments - - - 2,987,835 2,987,835
Total current assets 356,411 2,668,995 - 5,580,448 8,605,854
Noncurrent assets
Capital assets
Software - 9,428 156,230 - 165,658
Buildings - 120,000 - 18,812,040 18,932,040
Improvements other than buildings - 170,274 258,421 123,542 552,237
Machinery and equipment - 4,239,862 462,738 104,530 4,807,130
Office equipment and furnishings - - 608,395 - 608,395
Vehicles - 4,058,053 - - 4,058,053
Construction In Progress - - - 17,136,743 17,136,743
Total capital assets - 8,597,617 1,485,784 36,176,855 46,260,256
Less accumulated depreciation - (4,934,439) (1,177,020) (9,447,613) (15,559,072)
Net capital assets - 3,663,178 308,764 26,729,242 30,701,184
Liabilities
Current liabilities
Accounts payable 119,774 410,153 4,062 - 533,989
Contracts payable - - - 1,077,615 1,077,615
Advances from other funds - - 85,572 - 85,572
Due to other governments - - 5,668 - 5,668
Total current liabilities 119,774 410,153 95,302 1,077,615 1,702,844
Noncurrent Liabilities:
Advances from other funds - - - 7,570,000 7,570,000
Total liabilities 119,774 410,153 95,302 8,647,615 9,272,844
Net Position
Net investment in capital assets - 3,663,178 308,764 25,651,627 29,623,569
Unrestricted 236,637 2,258,842 (95,302) (1,989,552) 410,625
Total net position 236,637 5,922,020 213,462 23,662,075 30,034,194
City of Crystal
Combining Statement of Net Position - Internal Service Funds
December 31, 2022
7.2
116
Self Insurance Fleet
Information
Technology City Buildings Totals
Operating revenues
Charges for services -$ 341,584$ 554,792$ 1,467,403$ 2,363,779$
Miscellaneous 55,527 84 259 73,000 128,870
Total operating revenues 55,527 341,668 555,051 1,540,403 2,492,649
Operating expenses
Other services 152,602 13,872 601,755 386,927 1,155,156
Supplies - - - 23,633 23,633
Depreciation - 662,617 84,215 589,632 1,336,464
Equipment - 6,077 282,168 173,441 461,686
Total operating expenses 152,602 682,566 968,138 1,173,633 2,976,939
Operating income (loss) (97,075) (340,898) (413,087) 366,770 (484,290)
Nonoperating revenues (expenses)
Investment income (6,033) (49,941) (3,556) 16,688 (42,842)
Gain on sale of capital assets - 83,737 - - 83,737
Total nonoperating revenue (expenses) (6,033) 33,796 (3,556) 16,688 40,895
Income before capital contributions (103,108) (307,102) (416,643) 383,458 (443,395)
Capital contributions - - - 6,826,342 6,826,342
Change in net position (103,108) (307,102) (416,643) 7,209,800 6,382,947
Net position - beginning 339,745 6,229,122 630,105 16,452,275 23,651,247
Net position - ending 236,637$ 5,922,020$ 213,462$ 23,662,075$ 30,034,194$
City of Crystal
Combining Statement of Revenues, Expenses, and Changes
in Net Position - Internal Service Funds
For the Year Ended December 31, 2022
7.2
117
Self Insurance Fleet
Information
Technology City Buildings Totals
Cash Flows - Operating Activities
Interfund services provided and used -$ 341,668$ 555,051$ (1,484,683)$ (587,964)$
Payments to suppliers (215,319) 390,204 (878,730) (1,748,512) (2,452,357)
Miscellaneous revenue 55,527 - - 37,251 92,778
Net cash flows -
operating activities (159,792) 731,872 (323,679) (3,195,944) (2,947,543)
Cash Flows - Capital and Related
Financing Activities
Change in advance from other funds - - 85,572 7,570,000 7,655,572
Proceeds from disposal of capital assets - 303,940 - - 303,940
Grants and contributions - - - 6,826,342 6,826,342
Acquisition of capital assets - (808,889) - (11,367,304) (12,176,193)
Net cash flows -
capital and related
financing activities - (504,949) 85,572 3,029,038 2,609,661
Cash Flows - Investing Activities
Interest and dividends received (6,033) (49,941) (3,556) 16,688 (42,842)
Net change in cash and cash equivalents (165,825) 176,982 (241,663) (150,218) (380,724)
Cash and cash equivalents, January 1 522,236 2,492,013 241,663 2,742,831 5,998,743
Cash and cash equivalents, December 31 356,411$ 2,668,995$ -$ 2,592,613$ 5,618,019$
Reconciliation of Operating
Income (Loss) to Net Cash
Flows - Operating Activities
Operating income (loss) (97,075)$ (340,898)$ (413,087)$ 366,770$ (484,290)$
Adjustments to reconcile operating
income (loss) to net cash flows -
operating activities
Depreciation expense - 662,617 84,215 589,632 1,336,464
Due from other governments - - - (2,987,835) (2,987,835)
Accounts payable (62,717) 410,153 1,368 (1,164,511) (815,707)
Due to other governmental units - - 3,825 - 3,825
Total adjustments (62,717) 1,072,770 89,408 (3,562,714) (2,463,253)
Net cash flows -
operating activities (159,792)$ 731,872$ (323,679)$ (3,195,944)$ (2,947,543)$
City of Crystal
Combining Statement of Cash Flows - Internal Service Funds
Year Ended December 31, 2022
7.2
118
7.2
119
STATISTICAL SECTION
7.2
120
7.2
121
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
7.2
122
2013 2014 2015 2016
Governmental Activities
Net investment in capital assets 28,944,085$ 34,052,606$ 39,903,269$ 40,421,924$
Restricted 17,707,336 16,360,362 18,102,105 18,580,900
Unrestricted 43,687,744 39,694,502 25,901,804 25,370,751
Total governmental activities net position 90,339,165$ 90,107,470$ 83,907,178$ 84,373,575$
Business-Type Activities
Net investment in capital assets 15,655,823$ 15,448,191$ 19,057,632$ 19,889,415$
Unrestricted 10,114,825 9,397,654 7,484,722 8,575,762
Total business-type activities net position 25,770,648$ 24,845,845$ 26,542,354$ 28,465,177$
Primary Government
Net investment in capital assets 44,599,908$ 49,500,797$ 58,960,901$ 60,311,339$
Restricted 17,707,336 16,360,362 18,102,105 18,580,900
Unrestricted 53,802,569 49,092,156 33,386,526 33,946,513
Total primary government net position 116,109,813$ 114,953,315$ 110,449,532$ 112,838,752$
City of Crystal
Net Position By Component
(Accrual Basis of Accounting)
Last Ten Fiscal Years
(unaudited)
7.2
123
Table 1
2017 2018 2019 2020 2021 2022
40,534,551$ 41,195,367$ 46,233,147$ 48,365,123$ 51,326,806$ 62,949,446$
20,099,040 18,671,275 17,072,361 14,067,681 12,295,252 10,999,656
24,388,020 23,516,447 22,294,201 23,420,637 20,389,276 13,615,508
85,021,611$ 83,383,089$ 85,599,709$ 85,853,441$ 84,011,334$ 87,564,610$
22,283,455$ 21,693,069$ 19,815,262$ 21,760,477$ 22,539,961$ 25,321,967$
9,572,606 10,836,119 11,901,367 12,074,284 13,285,540 12,753,395
31,856,061$ 32,529,188$ 31,716,629$ 33,834,761$ 35,825,501$ 38,075,362$
62,818,006$ 62,888,436$ 66,048,409$ 70,125,600$ 73,866,767$ 88,271,413$
20,099,040 18,671,275 17,072,361 14,067,681 12,295,252 10,999,656
33,960,626 34,352,566 34,195,568 35,494,921 33,674,816 26,368,903
116,877,672$ 115,912,277$ 117,316,338$ 119,688,202$ 119,836,835$ 125,639,972$
7.2
124
2013 2014 2015 2016
Expenses
Governmental activities
General government 2,091,395$ 2,767,171$ 2,646,651$ 3,226,278$
Public safety 5,900,593 6,085,801 6,438,462 7,685,700
Public works 2,655,529 5,034,894 5,132,260 6,511,486
Parks and recreation 2,548,785 2,622,407 2,816,220 2,759,211
Community development 1,570,132 1,358,486 1,287,427 1,174,426
Interest on long-term debt 586,388 529,448 555,121 563,308
Total governmental activities expenses 15,352,822 18,398,207 18,876,141 21,920,409
Business-type activities
Water 3,092,654$ 3,928,301$ 4,131,931$ 3,047,910$
Sanitary sewer 1,927,664 1,931,725 1,995,561 2,169,072
Storm drainage 760,372 662,419 883,284 903,884
Street lights 309,396 169,664 151,305 155,056
Recycling 329,131 324,105 324,393 324,496
Total business-type activities expenses 6,419,217 7,016,214 7,486,474 6,600,418
Total primary government expenses 21,772,039$ 25,414,421$ 26,362,615$ 28,520,827$
Program Revenues
Governmental activities
Charges for services
General government 256,133$ 354,802$ 228,357$ 320,899$
Public safety 429,740 438,328 412,016 411,592
Public works 9 303 0 -
Parks and recreation 500,561 465,769 483,741 515,056
Community development 902,000 1,739,829 761,469 767,755
Operating grants and contributions 667,622 595,463 634,881 728,449
Capital grants and contributions 6,877,723 2,613,480 5,533,872 7,393,250
Total governmental activities program revenues 9,633,788 6,207,974 8,054,336 10,137,001
Business-type activities
Charges for services
Water 2,637,830 2,601,186 2,962,818 3,076,263
Sanitary sewer 1,939,539 2,020,522 2,079,431 2,193,599
Storm drainage 717,005 760,884 809,067 867,598
Street lights 169,015 181,720 186,125 191,261
Recycling 334,162 334,101 334,493 334,926
Operating grants and contributions 414,534 388,648 1,669,332 1,859,532
Capital grants and contributions 1,319,522 11,612 - -
Total business-type activities program revenues 7,531,607 6,298,673 8,041,266 8,523,179
Total primary government program revenues 17,165,395$ 12,506,647$ 16,095,602$ 18,660,180$
City of Crystal
Changes in Net Position
(Accrual Basis of Accounting)
Last Ten Fiscal Years
(unaudited)
7.2
125
Table 2
2017 2018 2019 2020 2021 2022
2,964,731$ 3,435,708$ 4,523,764$ $2,622,345 $2,538,863 $2,304,721
7,546,777 7,250,306 7,585,509 8,533,972 8,207,219 10,325,270
4,224,253 4,285,522 4,479,566 5,675,261 4,789,185 4,650,024
3,128,275 3,299,792 3,093,691 3,126,917 4,097,820 4,615,108
1,616,752 1,159,700 1,398,666 1,552,016 1,748,467 1,481,719
541,919 518,975 462,218 340,097 307,840 255,755
20,022,707 19,950,003 21,543,414 21,850,608 21,689,394 23,632,597
2,970,228$ 3,105,611$ 3,094,824$ 3,362,825$ 3,718,004$ 3,817,096$
2,144,581 2,486,143 2,164,837 2,317,049 2,742,022 2,668,640
809,169 759,180 1,539,162 725,016 817,652 937,050
174,479 152,301 151,732 194,991 180,314 205,757
324,853 335,310 334,947 344,747 344,702 380,318
6,423,310 6,838,545 7,285,502 6,944,628 7,802,694 8,008,861
26,446,017$ 26,788,548$ 28,828,916$ 28,795,236$ 29,492,088$ 31,641,458$
279,603$ 243,710$ 177,914$ 181,700$ 232,472$ 251,089$
380,498 346,501 318,706 204,252 174,439 597,493
- - - - --
513,457 541,486 552,388 154,555 437,656 518,047
796,152 1,255,396 1,169,663 651,925 898,035 832,792
659,450 699,638 761,960 887,111 963,527 890,737
7,473,350 2,337,789 2,146,495 1,763,000 1,670,868 8,553,139
10,102,510 5,424,520 5,127,126 3,842,543 4,376,997 11,643,297
3,138,317 3,265,849 3,707,733 4,442,177 5,060,454 5,032,917
2,300,866 2,578,065 2,446,851 2,679,871 3,112,281 3,347,460
1,058,549 1,174,131 1,226,403 1,271,999 1,309,810 1,365,594
195,122 195,324 194,950 193,029 194,435 195,553
340,250 340,410 342,336 348,287 365,448 386,375
680,740 547,760 2,560,212 240,825 202,760 563,599
- - - 105,750 49,395 7,801
7,713,844 8,101,539 10,478,485 9,281,938 10,294,583 10,899,299
17,816,354$ 13,526,059$ 15,605,611$ 13,124,481$ 14,671,580$ 22,542,596$
7.2
126
2013 2014 2015 2016
Net (Expense) Revenue
Governmental activities (5,719,034)$ (12,190,233)$ (10,821,805)$ (11,783,408)$
Business-type activities 1,112,390 (717,541) 554,792 1,922,761
Total primary government net expense (4,606,644)$ (12,907,774)$ (10,267,013)$ (9,860,647)$
General Revenues and Other Changes
in Net Position
Governmental activities
Property taxes 9,561,519$ 9,621,212$ 9,670,252$ 9,955,391$
Grants and contributions not restricted
to specific programs 1,472,223 1,664,043 1,701,220 1,712,591
Unrestricted investment earnings 96,678 350,648 303,263 445,296
Gain on disposition of capital assets 47,080 48,900 27,706 82,795
Transfers (252,756) 273,735 (1,577,880) 53,732
Total governmental activities 10,924,744 11,958,538 10,124,561 12,249,805
Business-type activities
Unrestricted investment earnings 16,241 66,473 53,517 47,353
Gain on disposition of capital assets 51,300 0 12,500 6,441
Transfers 252,756 (273,735) 1,577,880 (53,732)
Total business-type activities 320,297 (207,262) 1,643,897 62
Total primary government 11,245,041$ 11,751,276$ 11,768,458$ 12,249,867$
Change in Net Position
Governmental activities 5,205,710$ (231,695)$ (697,244)$ 466,397$
Business-type activities 1,432,687 (924,803) 2,198,689 1,922,823
Total primary government 6,638,397$ (1,156,498)$ 1,501,445$ 2,389,220$
City of Crystal
Changes in Net Position
(Accrual Basis of Accounting)
Last Ten Fiscal Years
(unaudited)
7.2
127
(Continued)
Table 2
2017 2018 2019 2020 2021 2022
(9,920,197)$ (14,525,483)$ (16,416,288)$ (16,416,288)$ (17,312,397)$ (11,989,300)$
1,290,534 1,262,994 3,192,983 3,192,983 2,491,889 2,890,438
(8,629,663)$ (13,262,489)$ (13,223,305)$ (13,223,305)$ (14,820,508)$ (9,098,862)$
10,469,019$ 11,193,252$ 11,619,642 12,699,857 13,437,858 14,175,783
1,753,898 1,850,588 2,038,452 3,751,256 1,624,369 1,356,242
302,344 542,106 969,103 1,217,350 (163,476) (605,649)
91,114 231,971 146,270 119,077 92,038 110,986
(2,048,142) 502,049 4,154,441 474,257 479,501 505,214
10,568,233 14,319,966 18,927,908 18,261,797 15,470,290 15,542,576
42,244 98,002 148,899 255,079 (21,648) (135,363)
9,964 - - - -
2,048,142 (502,049) (4,154,441) (474,257) (479,501) (505,214)
2,100,350 (404,047) (4,005,542) (219,178) (501,149) (640,577)
12,668,583$ 13,915,919$ 14,922,366$ 18,042,619$ 14,969,141$ 14,901,999$
648,036$ (205,517)$ 2,511,620$ 1,845,509$ (1,842,107)$ 3,553,276$
3,390,884 858,947 (812,559) # 2,973,805 # 1,990,740 # 2,249,861
4,038,920$ 653,430$ 1,699,061$ 4,819,314$ 148,633$ 5,803,137$
7.2
128
2013 2014 2015 2016
General Fund
Nonspendable
Inventory -$ -$ 27,488$ 15,519$
Prepaid items - - - -
Committed
Compensated absences 840,514 801,697 782,627 817,760
Unassigned 6,862,599 6,594,097 6,382,810 6,220,496
Total general fund 7,703,113$ 7,395,794$ 7,192,925$ 7,053,775$
All Other Governmental Funds
Nonspendable
Prepaid items -$ 8,450$ -$ -$
Restricted
Housing and redevelopment assistance 1,593,243 1,655,414 1,703,927 1,783,870
Murl revolving fund 35,651 39,519 - -
Debt service 5,440,681 5,528,971 6,437,512 5,750,342
10% lawful gambling contribution 1,945 445 - -
DWI-related enforcement, training and education 59,357 55,399 40,626 32,375
Committed
Housing and redevelopment assistance 3,914,649 3,974,329 4,247,836 4,215,316
Capital outlay - city wide 8,647,926 8,632,632 8,498,360 8,357,889
Capital outlay - replace and
renovation of city bldgs.10,286,268 6,964,198 - 105,509
Capital outlay - street reconstruction 2,261,153 2,347,934 2,074,645 2,132,454
Capital outlay - police equipment 3,138,748 3,122,050 3,126,443 3,108,331
Capital outlay - cable TV equipment - - 35,487 72,531
Capital outlay - fire equipment 637,970 643,352 648,635 585,905
Capital outlay - street maintenance 1,854,710 1,251,683 1,420,778 1,590,262
Capital outlay - fleet - - - -
Capital outlay - information technology - - - -
Capital outlay - park improvement - - - -
Assigned
Police department purposes 18,531 14,873 22,453 40,631
Park and recreation department purposes 26,718 24,686 23,684 20,729
Other purposes 11,855 8,060 9,042 7,755
Unassigned - - (626,968) -
Total all other governmental funds 37,929,405$ 34,271,995$ 27,662,460$ 27,803,899$
Note: The City implemented GASB Statement No. 54 in 2011.
City of Crystal
Fund Balances of Governmental Funds
(Modified Accrual Basis of Accounting)
Last Ten Fiscal Years
(unaudited)
7.2
129
Table 3
2017 2018 2019 2020 2021 2022
19,169$ 23,941$ 71,541$ 9,012$ 33,274$ 35,338$
- - - 17,386 13,178 -
753,962 774,914 801,503 926,030 957,521 917,956
6,119,325 6,181,591 6,123,392 7,405,222 6,765,565 5,558,799
6,892,456$ 6,980,446$ 6,996,436$ 8,357,650$ 7,769,538$ 6,512,093$
-$ -$ -$ -$ -$ -$
1,768,695 1,327,159 1,180,909 1,038,382 797,070 885,615
- - - - -
5,312,296 6,079,365 6,080,972 4,506,534 4,338,861 4,051,763
- - - - -
27,824 58,991 86,870 73,496 132,231 88,055
3,846,024 3,931,334 2,443,836 2,438,443 2,310,250 2,232,803
8,211,949 399,581 - - -
644,615 3,338,128 4,155,413 - -
2,718,992 5,672,092 6,778,918 6,803,180 6,692,180 6,623,565
2,870,691 2,812,125 2,915,448 2,766,889 2,820,165 2,753,628
111,450 152,917 195,363 238,385 271,449 299,790
212,683 1,932,904 - - - -
1,696,974 - - - - -
- 2,790,279 2,850,100 - - -
- 466,596 564,839 - - -
- - 1,405,831 1,373,663 1,240,397 1,359,410
40,631 40,631 71,427 74,614 57,434 99,634
20,729 20,729 - - - -
12,564 12,564 - - - -
- - - - - -
27,496,117$ 29,035,395$ 28,729,926$ 19,313,586$ 18,660,037$ 18,394,263$
7.2
130
2013 2014 2015 2016
Revenues
Property taxes 9,641,513$ 9,621,688$ 9,664,690$ 9,966,978$
Special assessments 3,467,243 2,873,099 3,328,989 3,950,081
Licenses, permits and inspections 843,741 924,967 808,695 773,479
Intergovernmental 3,046,762 2,930,382 3,175,821 3,062,273
Charges for sales and/or services 899,525 1,718,581 932,081 913,329
Administrative services provided to other funds 291,368 - - -
Fines and forfeitures 397,759 405,546 355,566 322,009
Interest 473,660 331,758 291,400 245,865
Net increase (decrease) in fair value of investments (379,426)9,442 4,825 59,015
Miscellaneous 502,878 111,496 409,295 1,046,909
Total revenues 19,185,023 18,926,959 18,971,362 20,339,938
Expenditures
General government 2,158,164 2,198,872 2,289,245 2,517,924
Public safety 5,679,203 5,692,868 5,841,029 6,143,480
Public works 1,311,719 2,246,292 1,327,418 2,077,476
Parks and recreation 2,029,179 2,081,162 2,229,890 2,240,202
Community development 1,464,562 1,252,952 1,197,652 1,108,920
Capital outlay 7,327,877 7,209,039 14,022,519 7,124,563
Debt service -
Principal 1,358,811 2,275,042 1,379,264 2,481,027
Interest and other fees 564,181 554,063 536,202 591,516
Total expenditures 21,893,696 23,510,290 28,823,219 24,285,108
Excess (Deficiency) of Revenues
Over (Under) Expenditures (2,708,673) (4,583,331) (9,851,857) (3,945,170)
Other Financing Sources (Uses)
Issuance of bonds 3,630,000 - 2,550,000 3,330,000
Issuance of refunding bonds - - - -
Issuance of notes payable - - - -
Refunded bonds redeemed - - - -
Premium on bonds issued 58,626 - 92,777 99,664
Proceeds from sale of property and equipment 57,310 82,547 33,224 122,359
Lease Issuance
Discount on bonds issued - - - -
Transfers in 895,350 2,347,933 931,436 673,132
Transfers out (845,756) (1,898,783) (551,084) (286,146)
Total other financing sources (uses)3,795,530 531,697 3,056,353 3,939,009
Net Change in Fund Balances 1,086,857$ (4,051,634)$ (6,795,504)$ (6,161)$
Debt service as a percentage of noncapital expenditures 13%17%13%18%
City of Crystal
Changes in Fund Balances of Governmental Funds
(Modified Accrual Basis of Accounting)
Last Ten Fiscal Years
(unaudited)
7.2
131
Table 4
2017 2018 2019 2020 2021 2022
10,569,176$ 11,231,206$ 11,600,365$ 12,660,825$ 13,457,410$ 14,159,906$
4,468,266 3,452,454 2,746,810 2,460,519 2,321,804 1,908,984
785,451 740,192 835,712 676,382 874,706 850,953
3,133,642 3,641,377 3,964,052 4,903,347 2,881,597 2,644,515
859,087 935,558 886,368 332,551 709,189 854,019
- - - - -
359,917 251,732 296,200 196,239 169,270 188,836
259,657 511,542 949,195 930,168 (131,068) (562,807)
- - - - -
354,302 595,766 406,221 107,560 357,923 175,903
20,789,498 21,359,827 21,684,923 22,267,591 20,640,831 20,220,309
2,639,028 2,580,042 2,479,514 2,246,838 2,251,477 2,484,535
6,589,235 7,028,892 7,412,980 8,324,408 8,509,527 9,101,585
1,455,074 1,391,736 1,411,680 1,549,456 1,761,363 1,873,638
2,379,532 2,546,771 2,792,663 2,913,882 3,512,059 3,872,309
1,279,318 1,548,967 1,112,371 1,303,613 1,542,587 1,399,679
9,829,622 3,255,645 4,651,350 3,139,828 2,812,386 2,129,087
1,968,341 1,587,269 1,915,357 3,350,275 1,652,500 1,413,605
551,467 548,573 508,618 425,562 353,532 309,570
26,691,617 20,487,895 22,284,533 23,253,862 22,395,431 22,584,008
(5,902,119) 871,932 (599,610) (986,271) (1,754,600) (2,363,699)
4,665,000 - - - -
- - - - -
- - - - -
- - - - -
273,843 - - - -
91,114 253,287 146,270 27,240 33,438 27,249
308,017
- - - - -
1,944,997 10,580,478 2,015,785 474,257 520,329 505,214
(1,541,936) (10,078,429) (1,556,924) - (40,828)
5,433,018 755,336 605,131 501,497 512,939 840,480
(469,101)$ 1,627,268$ 5,521$ (484,774)$ (1,241,661)$ (1,523,219)$
15%12%14%19%10%8%
7.2
132 Table 5TotalReal PropertyTotalDirectEstimatedFiscalCommercial PersonalTaxableTaxActualYear Residential Apartments Industrial Property Market ValueRateMarket Value2012 1,019,240,647$ 100,691,000$ 161,022,000$ 11,783,600$ 1,292,737,247$ 52.929 1,457,765,100$ 88.86 %2013 864,841,494 100,076,440 159,257,200 12,586,700 1,136,761,834 57.630 1,311,691,400 86.662014 864,287,852 101,813,000 156,849,300 12,661,700 1,135,611,852 56.015 1,440,635,800 78.832015 1,020,212,713 104,420,800 155,744,300 13,315,900 1,293,693,713 50.498 1,484,886,100 87.122016 1,153,327,871 154,241,560 159,609,700 13,517,900 1,480,697,031 53.207 1,620,984,300 91.352017 1,280,234,014 167,116,280 174,031,700 13,922,200 1,635,304,194 50.360 1,767,035,000 92.552018 1,405,036,164 178,406,933 180,514,900 15,766,500 1,779,724,497 50.416 1,782,801,500 99.832019 1,542,818,000 208,112,000 200,365,100 15,983,900 1,967,279,000 48.771 1,919,021,800 102.512020 1,618,265,550 227,997,580 225,005,300 16,559,700 2,087,828,130 46.785 2,122,999,500 98.342021 1,819,253,404 204,798,000 220,666,200 16,834,900 2,261,552,504 48.371 2,213,904,900 102.152022 2,114,867,226 222,797,000 229,864,100 11,918,600 2,579,446,926 46.317 2,402,167,100 107.38Source: Hennepin County report Market Value and Tax Capacity Growth By City. Total TaxableCity of CrystalTaxable and Estimated Market Values of Taxable PropertyLast Ten Fiscal Years(unaudited)Market Valueas a Percentof EstimatedActualMarket Value7.2
133 Property Tax Rates -Direct and Overlapping GovernmentsLast Ten Fiscal Years(unaudited)Table 6TotalTotal Crystal RobbinsdaleCityTax Debt Service ISD #281 TotalBasicG.O. Direct Robbinsdale Hennepin Special Capacity Market Market OverlappingRate HRA Debt Service Tax Rate ISD #281 County Districts * Tax Rate Value Rate Value Rate Tax Rate48.219 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 0.250 123.85548.371 1.136 0.000 49.507 25.529 38.210 7.813 121.059 0.000 0.241 121.30046.317 1.056 0.000 47.373 26.507 38.535 7.849 120.264 0.000 0.216 120.480Note 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 County2022FiscalCity Direct Tax RatesCity of Crystal2021202020192018201720162015201420132012Year7.2
134 Table 7Tax TaxTaxpayer Type of Property Capacity * Rank Capacity * RankCNTRL CRYSTAL VILL LLC ETAL Apartments 669,001$ 1 2.64 %MN-CRYSTAL CENTER-HA LLC Shopping Center 507,250 2 2.00MINNESOTA SENIOR LIVING LLC Apartments 336,325 3 1.33CEDARWOOD INVESTORS LLC Apartments 274,175 4 1.08SMITH-STURM INV WINNETKA VLG Apartments 241,363 5 0.95 130,888$ 5 1.01 %WINPARK ONE TWO LLC Industrial 240,610 6 0.95 126,250 7 0.97CRYSTAL GALLERY DEVELOPERS Shopping Center 208,650 7 0.82CRYSTAL LEASED HSG ASCTS I Housing 171,781 8 0.68TARGET CORPORATION Department Store 170,030 9 0.67 188,250 2 1.45CRYSTAL MEDICAL BUILDING LLC Office/Clinic 167,850 10 0.74 105,425 9 0.81CRYSTAL SHOPPING CTR ASSOC Shopping Center 389,250 1 3.00CRYSTAL VILLAGE APARMT LLC Apartments 171,301 3 1.32SUPERVALU INC Grocery Store 161,250 4 1.24CALIBRE CHASE PTNRS LTD PTN Apartments 128,750 6 0.99BASS LK RD RETAIL ASSOC LLP Office/Warehouse 109,770 8 0.85INDUSTRIAL EQUITIES GRP LLC Apartments 93,090 10 0.722,987,035$ 11.79 % 1,604,224$ 12.38 %Total City of Crystal Tax Capacity 25,325,627$ 12,963,259$ * 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 CountyCapacity20222013City of CrystalPrincipal Property Taxpayers Current Year and Nine Years Ago(unaudited)Percentageof Total TaxCapacityPercentageof Total Tax 7.2
135 Table 8Current Delinquent Total OutstandingFiscal Tax Tax Tax Tax DelinquentYearLevy CollectionsCollections CollectionsTaxes20129,258,402$ 9,139,252$ 98.71 %119,150$ 9,258,402$ 100.00 %-$ 0.00 %20139,159,895 9,090,92799.2568,968 9,159,895 100.00- 0.0020149,217,153 9,144,39999.2172,754 9,217,153 100.00- 0.0020159,288,837 9,217,08999.2365,983 9,283,072 99.915,765 0.0920169,954,054 9,871,60899.1779,990 9,951,598 99.962,456 0.04201710,606,338 10,538,86899.3659,692 10,598,560 99.887,778 0.12201811,172,069 11,093,85299.3063,214 11,157,066 99.8015,003 0.20201911,343,132 11,272,12799.3747,044 11,319,171 99.5023,961 0.50202012,367,416 12,257,75699.11- 12,278,726 99.2888,690 0.01 202113,137,587 13,035,18899.22- 13,068,517 99.4769,070 0.01 202213,829,480 13,733,73999.31- 13,772,786 99.5956,694 0.00 Source: City of Crystal Finance Department records a % ofCity of CrystalProperty Tax Levies and CollectionsLast Ten Fiscal Years(unaudited)Percentageof LevyCollected Tax Levy Tax LevyTotalCollectionsas a % ofDelinquentTaxes as 7.2
136
2013 2014 2015 2016
Taxable market value - amounts 1,135,611$ 1,293,694$ 1,339,237$ 1,482,067$
expressed in thousands
Debt limit (3% of taxable market value)34,068,000$ 38,811,000$ 40,177,000$ 44,462,000$
Less debt applicable to debt limit
Total bonded debt 15,926,532 13,740,062 15,099,795 15,900,940
Deductions -
Tax increment bonds - - - -
Special assessment bonds 14,191,612 12,559,803 14,083,544 15,050,000
14,191,612 12,559,803 14,083,544 15,050,000
Total debt applicable to debt limit 1,734,920 1,180,259 1,016,251 850,940
Legal debt margin 32,333,080$ 37,630,741$ 39,160,749$ 43,611,060$
Total debt applicable to the debt limit as
a percentage of the debt limit 5.1%3.0%2.5%1.9%
Source: City of Crystal Finance Department records
City of Crystal
Legal Debt Margin Information
Last Ten Fiscal Years
(unaudited)
7.2
137
Table 9
2017 2018 2019 2020 2021 2022
1,637,892$ 1,637,892$ 1,967,279$ 2,087,828$ 2,261,552,504$ 2,579,446,926$
49,137,000$ 49,137,000$ 59,018,000$ 62,635,000$ 67,846,575,000$ 77,383,408,000$
19,068,514 17,700,339 15,970,984 12,882,262 11,409,757 10,000,107
- - - - - -
18,600,000 17,260,000 15,560,000 12,470,000 11,060,000 9,690,000
18,600,000 17,260,000 15,560,000 12,470,000 11,060,000 9,690,000
468,514 440,339 410,984 412,262 349,757 310,107
48,668,486$ 48,696,661$ 58,607,016$ 62,222,738$ 67,846,225,243$ 77,383,097,893$
1.0% 0.9% 0.7% 0.7% 0.0% 0.0%
7.2
138 City of CrystalLast Ten Fiscal Years(unaudited)Table 10G.O. G.O.Tax Special G.O. TotalG.O. Increment Assessment Notes Primary PerBondsBondsBondsPayable GovernmentCapita1,741,221$ -$ 11,768,751$ 35,081$ 13,545,053$ 1.05 % 1.03 %604$ 1,734,920- 14,191,612- 15,926,532 1.401.167031,180,259- 12,559,803- 13,740,062 1.210.966121,016,251- 14,083,544- 15,099,795 1.171.01661850,940- 15,281,867- 16,132,807 1.091.05706- - 19,068,514- 19,068,514 1.171.17832- - 17,700,339- 17,700,339 0.991.07760- - 15,970,984- 15,970,984 0.810.87649- - 12,852,362- 12,852,362 0.620.72553- - 11,409,757- 11,409,757 0.500.62494- - 10,000,107- 10,000,107 0.390.55439Sources: 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 yearsPercentageof TaxableMarketValuePersonalIncome2012FiscalYearRatios of Outstanding Debt by TypeGovernmentalActivities202120202019201820172016201520142013Percentageof 2022 7.2
139
Table 11
Less
Amount
Restricted
G.O. for Debt Per
Bonds Service Total Capita
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 -
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
2019
2020
2021
Percentage
of Taxable
Market
Value of
Property
2022
Ratios of General Bonded Debt Outstanding
City of Crystal
Last Ten Fiscal Years
(unaudited)
Fiscal
Year
2012
2013
2014
2015
2016
2017
2018
7.2
140
City of Crystal
Direct and Overlapping Governmental Activities Debt
As of December 31, 2022
(unaudited)
Table 12
Net General
Obligation Amount
Bonded Debt Applicable To
Jurisdiction Outstanding Government
Direct -
City of Crystal 10,000,107$ 100.00 % 10,000,107$
Overlapping -
Robbinsdale ISD #281 188,583,455 19.47 36,717,199
Hennepin County 1,018,886,023 1.09 11,105,858
Hennepin Suburban Park District 47,650,901 1.52 724,294
Hennepin Regional RR Authority 85,464,798 1.09 931,566
Metropolitan Council / Transit 83,059,397 0.59 490,050
1,423,644,574 49,968,967
Total 1,433,644,681$ 59,969,074$
* 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
Percentage
Government *
Applicable To
7.2
141
Table 13
Per Capita Total City District-Wide
Personal Personal School
Population Income Income Enrollment
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
23,083 79,183 1,827,781,189 11,692 3.0
22,791 79,183 1,804,659,753 11,362 2.8
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.
2020
2021
Unemployment
Rate
2022
Year
2013
2014
2015
2016
2017
2018
2019
City of Crystal
Demographic and Economic Statistics
Last Ten Fiscal Years
(unaudited)
Fiscal
7.2
142
Table 14
Number of Number of
Employer Employees Rank Employees Rank
Volunteers of America -
Crystal Care Center 200 1 5.01 % 218 1 5.23 %
Target 185 2 4.64 182 2 4.37
Cub Foods 156 3 3.91 173 3 4.15
City of Crystal 101 4 2.53 101 4 2.42
Kilmer Electric Co., Inc. 96 5 2.41
Buffalo Wild Wings 65 6 1.63 60 9 1.44
Almsted's Crystal Super Value 60 7 1.50 70 7 1.68
McDonald's 44 8 1.10
Minnesota Grinding 40 9 1.00
Perkins 37100.93 46101.10
RFG Distributing 100 5 2.40
Kilmer Electric Co., Inc. 70 6 1.68
Metropolitan Transportation Network Inc. 65 8 1.56
984 24.66 % 1,085 26.03 %
Estimated total employment 3,991 4,166
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 Met Council
Percentage
of Total
City
Employment
2022 2013
City of Crystal
Prinicpal Employers
Current Year and Nine Years Ago
(unaudited)
Percentage
of Total
City
Employment
7.2
143 Table 15Function 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022General Government 11 11 11 11 9 9 11 11 11 11Public Safety Police Officers 28 27 30 30 33 33 34 34 34 35Civilians 6544558896Public Works Engineering 3333333334Maintenance 8888881111118Parks and Recreation Park maintenance 6666667777Recreation 5556558876Community Development 6776777766Utilities Water/Sanitary Sewer/Storm Drainage 9 9 9 10 10 10 9 9 10 982 81 83 84 86 86 98 98 98 92Source: City of Crystal Finance Department recordsCity of CrystalFull-Time City Government Employees By Function Last Ten Fiscal Years(unaudited) 7.2
144
2013 2014 2015 2016 2017 2018
General Government
Administration
Employee recruitments 19 22 26 17 20 15
Licenses issued 1,262 1,333 1,294 1,323 954 840
Public Safety
Police
Calls for service 31,624 34,362 31,077 30,860 27,296 32,863
Citations issued 6,622 6,230 5,798 5,771 4,710 4,465
Criminal cases investigated 1,123 1,172 1,208 1,372 1,362 1,525
Total arrests 925 767 859 926 826 906
Animal control incidents 469 447 457 509 391 303
Dog licenses issued 219 258 298 278 223 195
Fire (West Metro Fire-Rescue District)
Calls for service 1,448 1,663 1,514 1,573 1,922 1,856
Inspections, plan reviews and
consultations 747 808 824 746 880 691
Public Works
Miles of streets sealcoated 5***00
Miles of streets reconstructed 605550
Phase of 16-phase street project Phase 13 Phase 14 Phase 15 Phase 16
Parks and Recreation
Recreation program participants 10,600 13,847 12,149 11,082 11,623 13,615
No. of teams in team sports 212 212 216 249 228 246
No. of participants in special events 3,897 5,425 4,542 5,382 4,690 6,292
No. of rental groups 229 218 201 **** **
No. of facility rentals ** ** ** 711 1,022 970
Community Center permits 684 680 671 862 957 776
Pool attendance 30,009 28,042 28,092 26,769 27,098 30,350
Community Development
Permit inspections 2,868 2,779 2,771 2,430 2,835 2,704
Code enforcement incidents 1,332 1,482 1,539 1,514 1,405 1,317
Rental housing - no. of licensed units 2,788 2,859 2,548 2,915 2,831 2,715
Point of sale inspections/re-inspections 468 442 404 13 13 ***
Planning Commission applications 16 12 6 12 11 13
Utilities
Water system
Average residential consumption
(million gallons / day)1.34 Mg/d 1.26 Mg/d 1.22 Mg/d 1.20 Mg/d 1.60 Mg/d 1.40 Mg/d
* The sealcoat program was phased out after 2013. Mill and overlay will be used going forward.
** Effective 2016, it was determined that number of facility rentals was a better measure of reporting than number of rental
groups. Only that indicator will be presented on a prospective basis.
*** The point of sale program was phased out in 2015-2016.
Source: Various city departments
Function
City of Crystal
Operating Indicators By Function
Last Ten Fiscal Years
(unaudited)
7.2
145
Table 16
2019 2020 2021 2022
23 9 13 20
850 807 802 821
30,216 26,568 32,338 37,203
2,588 2,940 2,982 1,667
217 217 2,897 2,995
756 711 475 1,005
245 295 290 318
2000
840 781 890 959
428 675 1,260 1,327
0004
0 0 0 0.38
19,277 2,465 15,884 17,987
232 162 177 192
5,039 400 8,747 5,380
** ** ** **
755 296 885 623
884 677 792 1,131
26,631 0 14,870 14,261
3,262 3,034 3,683 3,573
1,583 1,294 1,288 1,277
2,702 2,736 2,725 2,713
*** *** *** ***
86710
1.40 Mg/d 1.21 Mg/d 1.21 Mg/d 1.21 Mg/d
7.2
146
2013 2014 2015 2016 2017
Public Safety
Police
Number of stations 1 1 1 1 1
Public Works
Street maintenance
Miles of city street 91 91 91 90 90
Parks and Recreation
Recreation
Number of park acres 253 253 253 263 263
Number of parks 2828282727
Number of parks with playground apparatus 20 20 20 19 19
Number of tennis courts 12 12 12 7 7
Number of outdoor pickleball courts
Number of supervised ice skating rinks
Hockey 44443
General use 3 3 3 3 2
Number of baseball fields
General use 2 2 2 2 2
Grogan Park (Little League) Fields 3 3 3 3 3
Number of softball fields
Reservable 77777
Non-reservable (neighborhood park backstop) 15 15 10 7 7
Number of full-size soccer fields 2 2 2 2 2
CoNumber of skateboard parks 1 1 1 1 1
W Number of centers 1 1 1 1 1
Number of facilities 11111
Utilities
Water system
Miles of water main (owned by city)90 90 90 90 93
Number of service connections 7,812 7,817 7,830 7,841 7,841
Number of fire hydrants 821 821 823 823 797
Sewer system
Miles of sanitary sewer 8787878787
Number of service connections 7,827 7,837 7,845 7,855 7,855
Number of lift stations 7 7 7 7 7
Storm drainage system
Miles of storm sewer 7476767765
Number of lift stations 1 1 1 1 1
Note: No capital asset indicators are available for the general government and community development functions.
Source: Various city departments
City of Crystal
Capital Asset Statistics By Function
Last Ten Fiscal Years
(unaudited)
Function
7.2
147
Table 17
2018 2019 2020 2021 2022
11111
90 88 91 91 91
261 261 261 261 261
26 26 26 26 26
19 19 19 19 19
77663
8
33444
22443
22222
33333
55555
77444
21111
11111
11111
11111
93 93 93 93 93
7,849 7,856 8,010 8,010 8,010
797 859 798 798 798
87 87 87 87 87
7,863 7,863 8,129 8,129 8,129
77777
65 65 66 66 66
11111
7.2
City of Crystal
Hennepin County, Minnesota
Communications Letter
December 31, 2022
7.2
City of Crystal
Table of Contents
Report on Matters Identified as a Result of
the Audit of the Basic Financial Statements 1
Significant Deficiency 3
Required Communication 4
Financial Analysis 9
Emerging Issues 20
7.2
1
Report on Matters Identified as a Result of
the Audit of the Basic 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 governmental activities,
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, 2022, 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. However, as discussed below, we identified a certain deficiency in internal
control that we consider to be a significant deficiency.
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 basic 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.
7.2
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 basic financial statements of the City, for the year ended December 31, 2022.
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 May 25, 2023, on such statements.
This communication, which is an integral part of our audit, 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
May 25, 2023
7.2
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, 2022. Professional standards require that we advise you of the following matters related
to our audit.
7.2
City of Crystal
Required Communication
4
We have audited the basic 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, 2022. 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 basic 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 basic 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 basic financial statements are free of
material misstatement. An audit of the basic 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 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 basic financial statements, as
described by professional standards, is to evaluate the presentation of the supplementary information in
relation to the basic financial statements as a whole and to report on whether the supplementary
information is fairly stated, in all material respects, in relation to the basic 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
basic 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 basic financial statement amounts.
However, the objective of our tests was not to provide an opinion on compliance with such provisions.
7.2
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.
Significant Risks Identified
We have identified the following significant risks of material misstatement:
Management Override of Controls – Management override of internal control is considered a
risk in substantially all engagements as management may be incentivized to produce better
results.
Misappropriation of Assets – If duties cannot be appropriately segregated, there is a risk of
unauthorized disbursements being made by the City. In addition, generally this results in less
review taking place as transactions are recorded in the financial statements.
Improper Revenue Recognition – Revenue recognition is considered a fraud risk on substantially
all engagements as it generally has a significant impact on the results of the government's
operations. In addition, complexities exist surrounding the calculation and recording of various
revenue sources.
Qualitative Aspects of the City's 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 basic financial statements.
There have been no initial selection of accounting policies and no changes to significant accounting
policies or their application during 2022.
7.2
City of Crystal
Required Communication
6
Qualitative Aspects of the City's Significant Accounting Practices (Continued)
Significant Accounting Policies (Continued)
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 basic 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 basic 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 basic financial statements relate to:
Depreciation and Amortization – The City is currently depreciating and amortizing its capital
assets over their estimated useful lives, as determined by management, using the straight-line
method.
Expense Allocation – Certain expenses are allocated to programs based on an estimate of the
benefit to that particular program. Examples are salaries, benefits, and supplies.
Total Other Post Employment Benefits (OPEB) Liability, Deferred Outflows of Resources
Related to OPEB and Deferred Inflows of Resources Related to OPEB – These balances are
based on an actuarial study using the estimates of future obligations of the City for post
employment benefits.
Net Pension Liability, Deferred Outflows of Resources Related to Pensions and Deferred Inflows
of Resources Related to Pensions – These balances are based on an allocation by the pension
plans using estimates based on contributions.
We evaluated the key factors and assumptions used to develop the accounting estimates and determined
that they are reasonable in relation to the basic financial statements taken as a whole and in relation to
the applicable opinion units.
Financial Statement Disclosures
Certain basic financial statement disclosures involve significant judgment and are particularly sensitive
because of their significance to financial statement users. The basic 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.
7.2
City of Crystal
Required Communication
7
Uncorrected and Corrected Misstatements
For the purposes of this communication, professional standards require us to accumulate all known and
likely misstatements identified during the audit, other than those that we believe are trivial, and
communicate them to the appropriate level of management. Further, professional standards require us to
also communicate the effects of uncorrected misstatements related to prior periods on the relevant
classes of transactions, account balances or disclosures, and the basic 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 basic 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 basic financial statements or the auditor's report. No such
disagreements arose during the course of our audit.
Representations Requested from Management
We have requested certain written representations from management, which are included in the
management representation letter.
Management's Consultations with Other Accountants
In some cases, management may decide to consult with other accountants about auditing and accounting
matters. Management has informed us that, and to our knowledge, there were no consultations with
other accountants regarding auditing and accounting matters.
Other Significant Matters, Findings, or Issues
In the normal course of our professional association with the City, we generally discuss a variety of
matters, including the application of accounting principles and auditing standards, significant events or
transactions that occurred during the year, operating and regulatory conditions affecting the City, and
operational 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 Included in Annual Reports
Pursuant to professional standards, our responsibility as auditors for other information, whether financial
or nonfinancial, included in the City's annual reports, does not extend beyond the information identified
in the audit report, and we are not required to perform any procedures to corroborate such other
information.
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.
7.2
City of Crystal
Required Communication
8
Other Information Included in Annual Reports (Continued)
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 basic
financial statements or to the basic financial statements themselves.
Our responsibility also includes communicating to you any information which we believe is a material
misstatement of fact. Nothing came to our attention that caused us to believe that such information, or its
manner of presentation, is materially inconsistent with the information, or manner of its presentation,
appearing in the basic financial statements.
7.2
City of Crystal
Financial Analysis
9
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, 2022, the General Fund balance was $6,512,093, a decrease of 16.2%, or $1,257,445,
from the 2021 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.
$6,181,591 $6,123,392 $7,405,222 $6,765,565 $5,558,799
$774,914 $801,503 $926,030 $957,521 $917,956
$23,941 $71,541
$26,398
$46,452
$35,338
$-
$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
2018 2019 2020 2021 2022
General Fund Balance
Unassigned Committed for Compensated Absences Nonspendable
7.2
City of Crystal
Financial Analysis
10
General Fund (Continued)
The City adopted a budget for 2023 which called for an increase in expenditures and other financing
uses of 6.1%, or $1,034,391, compared to the 2022 budget. Fund balance at December 31, 2022, as a
percentage of this budget is shown in the chart below. It is the City's policy to maintain unassigned fund
balance equal to 45% of the General Fund budget for the subsequent year.
43%
41%
44%
40%
31%
49%
47%
50%
45%
36%
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
50%
55%
2018 2019 2020 2021 2022
Fund Balance as a Percentage of Budget
Unassigned Fund Balance Total Fund Balance
7.2
City of Crystal
Financial Analysis
11
General Fund (Continued)
For the 2022 operating year, the City Council approved a balanced budget anticipating no change in
fund balance. Revenues were under budget by 2.4% and expenditures were 5.2% over budget.
General Fund Budget Actual Variance Percentage
Revenue
Taxes and assessments 12,638,094$ 12,516,120$ (121,974)$ -1.0%
Intergovernmental 1,777,489 1,927,302 149,813 8.4%
Licenses, permits, fines, and charges for services 1,988,463 1,889,368 (99,095) -5.0%
Other 194,350 (127,533) (321,883) -165.6%
Total revenues 16,598,396 16,205,257 (393,139) -2.4%
Expenditures
General government 2,353,191 2,424,851 71,660 3.0%
Public safety 8,515,725 9,082,619 566,894 6.7%
Public works 1,831,320 1,873,638 42,318 2.3%
Parks and recreation 3,660,513 3,869,267 208,754 5.7%
Community development $742,832 $735,304 (7,528) -1.0%
Total expenditures 17,103,581 17,985,679 882,098 5.2%
Excess of revenues
under expenditures (505,185) (1,780,422) (1,275,237) 252.4%
Net other financing sources (uses) 505,185 522,977 17,792 3.5%
Change in fund balance - (1,257,445) (1,257,445) N/A
Beginning fund balance 7,769,538 7,769,538 - N/A
Ending fund balance 7,769,538$ 6,512,093$ (1,257,445)$ -16.2%
General fund revenues in total came in $393,139 under budgeted amounts. The largest budget variance
for revenue was in the other revenue category, which was $321,883 under budget due in large part to
investment income coming in well under budgeted amounts. Revenue for taxes and assessments was
$121,974 under budget based on collections from those sources. These variances were partially offset by
the intergovernmental category being over budget by $149,813 as the City received funding over
anticipated amounts for police and fire state aids along with grants from federal sources.
Total general fund expenditures were $882,098 over budget for 2022. Public safety was $566,894 over
budget related to higher than anticipated expenditures for salaries and benefits, vehicle repairs and
maintenance, operating supplies, and professional services. Parks and recreation expenditures were
$208,754 over budget due in part to salaries and benefits, operating supplies, and utility costs coming in
higher than budgeted. Other categories came in relatively close to budgeted expenditures.
7.2
City of Crystal
Financial Analysis
12
General Fund Revenues
The chart below shows the City's revenues by source for the last five years. Total revenues of
$16,205,257 in 2022 increased from $15,600,575 in 2021. The largest increase of $436,388 occurred in
property taxes due to an increase in the amount of property tax levied for the General Fund for the year.
Charges for services increased by $207,830 due to additional police services provided along with
additional recreation program activity. Intergovernmental revenue increased $129,551 based on the
additional police and fire aid and federal funding. The other revenue category decreased by $145,334 as
a result of investment earnings being down in 2022 compared to 2021.
2018 2019 2020 2021 2022
Other $435,116 $493,544 $454,977 $229,628 $84,294
Charges for Services 818,999 808,321 332,551 646,189 854,019
Licenses and Permits 740,192 835,712 676,382 874,706 850,953
Intergovernmental 1,860,929 1,907,763 3,637,704 1,797,751 1,927,302
Property Taxes 9,499,766 9,690,226 11,407,848 12,052,301 12,488,689
$-
$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
7.2
City of Crystal
Financial Analysis
13
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 was nearly identical between 2021 and 2022.
General
Government
13%
Public Safety
51%Public Works
10%
Parks and
Recreation
22%
Community
Development
4%
2022 General Fund Expenditures
General
Government
13%
Public Safety
51%Public Works
11%
Parks and
Recreation
21%
Community
Development
4%
2021 General Fund Expenditures
7.2
City of Crystal
Financial Analysis
14
General Fund Expenditures (Continued)
General Fund expenditures increased $1,317,481, or 7.9%, from the prior year. Public safety
expenditures increased $603,882 with higher salary and benefit costs based on staffing, building internal
service fund charges, operating supply needs, and training costs. Parks and recreation expenditures
increased $362,344 due increased salary and benefit expenditures, repair and maintenance needs, and
utility costs. General government expenditures increased $181,397 due in part to additional expenditures
associated with elections along with greater professional service costs. Expenditures for public works
increased $112,275 with additional salaries and benefits, repair and maintenance expenditures, and
operating supply costs.
2018 2019 2020 2021 2022
Community Development $565,170 $557,867 $670,574 $677,721 $735,304
Parks and Recreation 2,457,539 2,668,952 2,895,125 3,506,923 3,869,267
Public Works 1,391,736 1,411,680 1,549,456 1,761,363 1,873,638
Public Safety 6,971,706 7,335,302 8,263,068 8,478,737 9,082,619
General Government 2,464,910 2,234,884 2,244,492 2,243,454 2,424,851
$-
$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
$20,000,000
General Fund Expenditures
7.2
City of Crystal
Financial Analysis
15
Water Enterprise Fund
Activity for the City's Water Fund is shown below. Water operating revenues increased $247,154 as a
result of an increase in rates along with increased consumption. Operating expenses increased $100,292
compared to 2021 with a noted increases for water charges and pension expense recognized in 2022.
The Water Fund ended the year with an operating income of $1,494,112, which was an increase of
$146,862 from 2022. Net income includes nonoperating revenues and expenses and was the highest in
2022 of the five years presented.
2018 2019 2020 2021 2022
Operating revenue $3,518,119 $3,707,733 $4,442,177 $5,060,454 $5,307,608
Operating expense 3,097,211 3,087,624 3,356,825 3,713,204 3,813,496
Net income with depreciation 560,131 828,645 1,382,389 1,532,831 1,700,832
Net income without depreciation 790,222 973,625 1,540,078 1,701,056 1,892,097
$-
$1,000,000
$2,000,000
$3,000,000
$4,000,000
$5,000,000
$6,000,000
Water Utility
7.2
City of Crystal
Financial Analysis
16
Sanitary Sewer Enterprise Fund
Sewer operating revenues increased $249,951 due to increased billing rates and an increase in the
number of billing units. Operating expenses decreased $73,382 due to decreased charges associated with
utility systems compared to 2021. The Sanitary Sewer Fund's operating income was $695,696 and
increased $323,333 from 2021. Operating income has increased in each of the past five years. Net
income includes nonoperating revenues and expenses and was the highest in 2022 of the five years
presented.
2018 2019 2020 2021 2022
Operating revenue $2,584,087 $2,446,851 $2,683,373 $3,114,385 $3,364,336
Operating expense 2,486,143 2,164,837 2,317,049 2,742,022 2,668,640
Net income with depreciation 135,797 345,434 489,141 424,580 688,252
Net income without depreciation 322,363 450,495 622,484 577,443 865,078
$-
$500,000
$1,000,000
$1,500,000
$2,000,000
$2,500,000
$3,000,000
$3,500,000
Sanitary Sewer Utility
7.2
City of Crystal
Financial Analysis
17
Storm Drainage and Street Lights Enterprise Funds
2018 2019 2020 2021 2022
Operating revenue $1,335,334 $1,226,403 $1,272,283 $1,310,107 $1,365,681
Operating expense 759,180 1,539,162 725,016 817,652 937,050
Net income with depreciation 599,616 2,092,174 683,715 480,414 387,410
Net income without depreciation 967,746 2,384,919 1,028,968 896,206 850,096
$-
$500,000
$1,000,000
$1,500,000
$2,000,000
$2,500,000
Storm Drainage Utility
2018 2019 2020 2021 2022
Operating revenue $195,324 $194,950 $193,029 $194,537 $195,555
Operating expense 152,301 151,732 194,991 180,314 205,757
Net income with depreciation 56,358 19,912 28,206 12,557 (25,022)
Net income without depreciation 88,575 52,129 60,562 45,107 7,527
$(50,000)
$-
$50,000
$100,000
$150,000
$200,000
$250,000
Street Lights Utility
7.2
City of Crystal
Financial Analysis
18
Per Capita Revenues and Expenditures
Below is a chart of the per capita trends in selected revenue and expenditure line items. In 2022, the
intergovernmental revenue per capita decreased and finished below the State average from 2021 for
similarly sized cities. The property taxes per capita for 2022 increased due to an increase in property tax
levy. Property taxes for 2022 came in above the state average. Current expenditures per capita increased
in 2022 and were above the state averages. Total expenditures per capita increased in 2022 but remained
below state averages.
2021** 2022***
Intergovernmental revenues per capita 202$ 124$ 115$
Property taxes per capita ****557 562 598
Total revenue per capita 1,106 885 876
Expenditures per capita
(less debt service and capital)739 753 811
Total expenditures per capita 1,200 960 978
Population 23,330 23,083
* Statewide data obtained from the office of the State Auditor's 2021 Minnesota City Finances Report
** 2021 per capita data uses 2020 population forecast from Metropolitan Council
*** 2022 per capital data uses 2021 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
2021 Statewide *
7.2
City of Crystal
Financial Analysis
19
Tax Capacity, Certified Tax Levy, and City Tax Rate
The chart below graphs the tax capacity, certified tax levy, and City tax rate for 2018 through 2022. 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 2021 to 2022, by
$1,968,248, or 8.3%. With taxable market value increasing at a faster rate than the certified levy over the
last five years, the City's tax rate has dropped from 49.2% in 2018 to 46.3% in 2022.
$18,459,975
$19,967,681
$22,411,718
$23,617,970
$25,586,218
$10,627,889 $11,060,388
$12,084,672 $12,837,587
$13,519,480
49.2%47.6%
46.8%48.4%46.3%
-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
$27,000,000
2018 2019 2020 2021 2022
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
7.2
City of Crystal
Emerging Issues
20
Executive Summary
The following is an executive summary of financial 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 updates include:
Accounting Standard Update – GASB Statement No. 96 – Subscription-Based Information
Technology Arrangements
GASB has issued GASB Statement No. 96 relating to accounting and financial reporting for
subscription-based information technology arrangements. The requirements of this Statement
will improve financial reporting by establishing a definition for subscription-based information
technology arrangements and providing uniform guidance for accounting and financial reporting
for transactions that meet that definition.
Accounting Standard Update – GASB Statement No. 100 – Accounting Changes and Error
Corrections
GASB has issued GASB Statement No. 100 relating to accounting and financial reporting for
accounting changes and error corrections. The requirements of this Statement will improve the
clarity of the accounting and financial reporting requirements for accounting changes and error
corrections, which will result in greater consistency in application in practice. In turn, more
understandable, reliable, relevant, consistent, and comparable information will be provided to
financial statement users for making decisions or assessing accountability.
Accounting Standard Update – GASB Statement No. 101 – Compensated Absences
GASB has issued GASB Statement No. 101 relating to accounting and financial reporting for
compensated absences. The unified recognition and measurement model in this Statement will
result in a liability for compensated absences that more appropriately reflects when a government
incurs an obligation. In addition, the model can be applied consistently to any type of
compensated absence and will eliminate potential comparability issues between governments
that offer different types of leave.
The following are extensive summaries of the current updates. As your continued business partner, we
are committed to keeping you informed of new and emerging issues. We are happy to discuss these
issues with you further and their applicability to your City.
Accounting Standard Update – GASB Statement No. 96 – Subscription-Based Information
Technology Arrangements
This Statement provides guidance on the accounting and financial reporting for subscription-based
information technology arrangements (SBITAs) for government end users (governments). This
Statement (1) defines a SBITA; (2) establishes that a SBITA results in a right-to-use subscription asset –
an intangible asset – and a corresponding subscription liability; (3) provides the capitalization criteria for
outlays other than subscription payments, including implementation costs of a SBITA; and (4) requires
note disclosures regarding a SBITA. To the extent relevant, the standards for SBITAs are based on the
standards established in Statement No. 87, Leases, as amended.
7.2
City of Crystal
Emerging Issues
21
Accounting Standard Update – GASB Statement No. 96 – Subscription-Based Information
Technology Arrangements (Continued)
A SBITA is defined as a contract that conveys control of the right to use another party's (a SBITA
vendor's) information technology (IT) software, alone or in combination with tangible capital assets (the
underlying IT assets), as specified in the contract for a period of time in an exchange or exchange-like
transaction.
The subscription term includes the period during which a government has a noncancellable right to use
the underlying IT assets. The subscription term also includes periods covered by an option to extend (if
it is reasonably certain that the government or SBITA vendor will exercise that option) or to terminate
(if it is reasonably certain that the government or SBITA vendor will not exercise that option).
Under this Statement, a government generally should recognize a right-to-use subscription asset – an
intangible asset – and a corresponding subscription liability. A government should recognize the
subscription liability at the commencement of the subscription term, – which is when the subscription
asset is placed into service. The subscription liability should be initially measured at the present value of
subscription payments expected to be made during the subscription term. Future subscription payments
should be discounted using the interest rate the SBITA vendor charges the government, which may be
implicit, or the government's incremental borrowing rate if the interest rate is not readily determinable.
A government should recognize amortization of the discount on the subscription liability as an outflow
of resources (for example, interest expense) in subsequent financial reporting periods.
The subscription asset should be initially measured as the sum of (1) the initial subscription liability
amount, (2) payments made to the SBITA vendor before commencement of the subscription term, and
(3) capitalizable implementation costs, less any incentives received from the SBITA vendor at or before
the commencement of the subscription term. A government should recognize amortization of the
subscription asset as an outflow of resources over the subscription term.
Activities associated with a SBITA, other than making subscription payments, should be grouped into
the following three stages, and their costs should be accounted for accordingly:
Preliminary Project Stage, including activities such as evaluating alternatives, determining
needed technology, and selecting a SBITA vendor. Outlays in this stage should be expensed as
incurred.
Initial Implementation Stage, including all ancillary charges necessary to place the subscription
asset into service. Outlays in this stage generally should be capitalized as an addition to the
subscription asset.
Operation and Additional Implementation Stage, including activities such as subsequent
implementation activities, maintenance, and other activities for a government's ongoing
operations related to a SBITA. Outlays in this stage should be expensed as incurred unless they
meet specific capitalization criteria.
In classifying certain outlays into the appropriate stage, the nature of the activity should be the
determining factor. Training costs should be expensed as incurred, regardless of the stage in which they
are incurred.
7.2
City of Crystal
Emerging Issues
22
Accounting Standard Update – GASB Statement No. 96 – Subscription-Based Information
Technology Arrangements (Continued)
If a SBITA contract contains multiple components, a government should account for each component as
a separate SBITA or nonsubscription component and allocate the contract price to the different
components. If it is not practicable to determine a best estimate for price allocation for some or all
components in the contract, a government should account for those components as a single SBITA.
This Statement provides an exception for short-term SBITAs. Short-term SBITAs have a maximum
possible term under the SBITA contract of 12 months (or less), including any options to extend,
regardless of their probability of being exercised. Subscription payments for short-term SBITAs should
be recognized as outflows of resources.
This Statement requires a government to disclose descriptive information about its SBITAs other than
short-term SBITAs, such as the amount of the subscription asset, accumulated amortization, other
payments not included in the measurement of a subscription liability, principal and interest requirements
for the subscription liability, and other essential information.
GASB Statement No. 96 is effective for reporting periods beginning after June 15, 2022. Earlier
application is encouraged.
Information provided above was obtained from www.gasb.org.
Accounting Standard Update – GASB Statement No. 100 – Accounting Changes and Error
Corrections – an Amendment of GASB Statement No. 62
The primary objective of this Statement is to enhance accounting and financial reporting requirements
for accounting changes and error corrections to provide more understandable, reliable, relevant,
consistent, and comparable information for making decisions or assessing accountability.
This Statement defines accounting changes as changes in accounting principles, changes in accounting
estimates, and changes to or within the financial reporting entity and describes the transactions or other
events that constitute those changes. As part of those descriptions, for (1) certain changes in accounting
principles and (2) certain changes in accounting estimates that result from a change in measurement
methodology, a new principle or methodology should be justified on the basis that it is preferable to the
principle or methodology used before the change. That preferability should be based on the qualitative
characteristics of financial reporting – understandability, reliability, relevance, timeliness, consistency,
and comparability. This Statement also addresses corrections of errors in previously issued financial
statements.
This Statement prescribes the accounting and financial reporting for (1) each type of accounting change
and (2) error corrections. This Statement requires that (a) changes in accounting principles and error
corrections be reported retroactively by restating prior periods, (b) changes to or within the financial
reporting entity be reported by adjusting beginning balances of the current period, and (c) changes in
accounting estimates be reported prospectively by recognizing the change in the current period. The
requirements of this Statement for changes in accounting principles apply to the implementation of a
new pronouncement in absence of specific transition provisions in the new pronouncement.
7.2
City of Crystal
Emerging Issues
23
Accounting Standard Update – GASB Statement No. 100 – Accounting Changes and Error
Corrections – an Amendment of GASB Statement No. 62 (Continued)
This Statement also requires that the aggregate amount of adjustments to and restatements of beginning
net position, fund balance, or fund net position, as applicable, be displayed by reporting unit in the
financial statements.
This Statement requires disclosure in notes to financial statements of descriptive information about
accounting changes and error corrections, such as their nature. In addition, information about the
quantitative effects on beginning balances of each accounting change and error correction should be
disclosed by reporting unit in a tabular format to reconcile beginning balances as previously reported to
beginning balances as restated.
Furthermore, this Statement addresses how information that is affected by a change in accounting
principle or error correction should be presented in required supplementary information (RSI) and
supplementary information (SI). For periods that are earlier than those included in the basic financial
statements, information presented in RSI or SI should be restated for error corrections, if practicable, but
not for changes in accounting principles.
GASB Statement No. 100 is effective for reporting periods beginning after June 15, 2023. Earlier
application is encouraged.
Information provided above was obtained from www.gasb.org.
Accounting Standard Update – GASB Statement No. 101 – Compensated Absences
The objective of this Statement is to better meet the information needs of financial statement users by
updating the recognition and measurement guidance for compensated absences. That objective is
achieved by aligning the recognition and measurement guidance under a unified model and by amending
certain previously required disclosures.
This Statement requires that liabilities for compensated absences be recognized for (1) leave that has not
been used and (2) leave that has been used but not yet paid in cash or settled through noncash means. A
liability should be recognized for leave that has not been used if (a) the leave is attributable to services
already rendered, (b) the leave accumulates, and (c) the leave is more likely than not to be used for time
off or otherwise paid in cash or settled through noncash means. Leave is attributable to services already
rendered when an employee has performed the services required to earn the leave. Leave that
accumulates is carried forward from the reporting period in which it is earned to a future reporting
period during which it may be used for time off or otherwise paid or settled. In estimating the leave that
is more likely than not to be used or otherwise paid or settled, a government should consider relevant
factors such as employment policies related to compensated absences and historical information about
the use or payment of compensated absences. However, leave that is more likely than not to be settled
through conversion to defined benefit postemployment benefits should not be included in a liability for
compensated absences.
7.2
City of Crystal
Emerging Issues
24
Accounting Standard Update – GASB Statement No. 101 – Compensated Absences (Continued)
This Statement requires that a liability for certain types of compensated absences – including parental
leave, military leave, and jury duty leave – not be recognized until the leave commences. This Statement
also requires that a liability for specific types of compensated absences not be recognized until the leave
is used.
This Statement also establishes guidance for measuring a liability for leave that has not been used,
generally using an employee's pay rate as of the date of the financial statements. A liability for leave that
has been used but not yet paid or settled should be measured at the amount of the cash payment or
noncash settlement to be made. Certain salary-related payments that are directly and incrementally
associated with payments for leave also should be included in the measurement of the liabilities.
With respect to financial statements prepared using the current financial resources measurement focus,
this Statement requires that expenditures be recognized for the amount that normally would be
liquidated with expendable available financial resources.
This Statement amends the existing requirement to disclose the gross increases and decreases in a
liability for compensated absences to allow governments to disclose only the net change in the liability
(as long as they identify it as a net change). In addition, governments are no longer required to disclose
which governmental funds typically have been used to liquidate the liability for compensated absences.
GASB Statement No. 101 is effective for reporting periods beginning after December 15, 2023. Earlier
application is encouraged.
Information provided above was obtained from www.gasb.org.
7.2
City of Crystal
Hennepin County, Minnesota
Reports on Compliance with
Government Auditing Standards,
Uniform Guidance, and Legal Compliance
December 31, 2022
7.2
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 Report on
Internal Control over Compliance Required by the Uniform Guidance 5
Schedule of Findings and Questioned Costs 8
Minnesota Legal Compliance 10
7.2
See notes to schedule of expenditures and federal awards. 1
Federal
Assistance
Listing Federal
Number Expenditures
U.S. Department of Transportation
Passed through the State of Minnesota
Highway Planning and Construction 20.205 68,366$
Towards Zero Deaths 20.608 13,446
Total U.S. Department of Transportation 81,812
U.S. Department of Treasury
Passed through the State of Minnesota
Coronavirus State and Local Recovery Funds 21.027 2,502,454
U.S. Department of Homeland Security
Passed through the State of Minnesota
Disaster Grants-Public Assistance 97.036C 23,296
Total Federal Expenditures 2,607,562$
Federal Agency/Pass Through Agency/Program Title
City of Crystal
Schedule of Expenditures of Federal Awards
Year Ended December 31, 2022
7.2
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 (the "Schedule") includes the federal
award activity of the City under programs of the federal government for the year-ended December 31,
2022. The information in this Schedule is presented in accordance with the requirements of Title 2 U.S.
Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (Uniform Guidance). Because the Schedule presents only a
selected portion of the operations of the City, it is not intended to and does not present the financial
position, changes in net position, or cash flows of the City.
NOTE 2 – PASS-THROUGH GRANT NUMBERS
All pass-through entities listed above use the same Assistance Listing 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.
7.2
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, each major fund, and the aggregate remaining fund information of
the City of Crystal, Minnesota as of and for the year ended December 31, 2022, and the related notes to
financial statements, which collectively comprise the City's basic financial statements, and have issued
our report thereon dated May 25, 2023.
Report on 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 certain
deficiencies in internal control, described in the accompanying Schedule of Findings and Questioned
Costs that we consider to be a significant deficiency as audit finding 2022-001.
7.2
4
Report on 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.
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
May 25, 2023
7.2
5
Report on Compliance for each Major Federal Program
and Report on Internal Control over Compliance Required by
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
Opinion on Each Major Federal Program
We have audited the City's compliance with the types of compliance requirements identified as subject
to audit in the OMB Compliance Supplement that could have a direct and material effect on the City's
major federal program for the year ended December 31, 2022. The City's major federal program is
identified in the summary of auditor's results section of the accompanying Schedule of Findings and
Questioned Costs.
In our opinion, the City complied in all material respects, with the compliance requirements referred to
above that could have a direct and material effect on its major federal program for the year ended
December 31, 2022.
Basis for Opinion on Each Major Federal Program
We conducted our audit of compliance in accordance with auditing standards generally accepted in the
United States of America (GAAS); the standards applicable to financial audits contained in Government
Auditing Standards issued by the Comptroller General of the United States (Government Auditing
Standards); and the audit requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform
Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform
Guidance). Our responsibilities under those standards and the Uniform Guidance are further described in
the Auditor's Responsibilities for the Audit of Compliance section of our report.
We are required to be independent of the City and to meet our other ethical responsibilities, in
accordance with relevant ethical requirements relating to our audit. We believe that the audit evidence
we have obtained is sufficient and appropriate to provide a basis for our opinion on compliance for each
major federal program. Our audit does not provide a legal determination of the City's compliance with
the compliance requirements referred to above.
Responsibilities of Management for Compliance
Management is responsible for compliance with the requirements referred to above and for the design,
implementation, and maintenance of effective internal control over compliance with the requirements of
laws, statutes, regulations, rules, and provisions of contracts or grant agreements applicable to the City's
federal programs.
7.2
6
Auditor's Responsibilities for the Audit of Compliance
Our objectives are to obtain reasonable assurance about whether material noncompliance with the
compliance requirements referred to above occurred, whether due to fraud or error, and express an
opinion on the City's compliance based on our audit. Reasonable assurance is a high level of assurance
but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with
GAAS, Government Auditing Standards, and the Uniform Guidance will always detect material
noncompliance when it exists. The risk of not detecting material noncompliance resulting from fraud is
higher than for that resulting from error, as fraud may involve collusion, forgery, intentional omissions,
misrepresentations, or the override of internal control. Noncompliance with the compliance
requirements referred to above is considered material, if there is a substantial likelihood that,
individually or in the aggregate, it would influence the judgment made by a reasonable user of the report
on compliance about the City's compliance with the requirements of each major federal program as a
whole.
In performing an audit in accordance with GAAS, Government Auditing Standards, and the Uniform
Guidance, we:
Exercise professional judgment and maintain professional skepticism throughout the audit.
Identify and assess the risks of material noncompliance, whether due to fraud or error, and
design and perform audit procedures responsive to those risks. Such procedures include
examining, on a test basis, evidence regarding the City's compliance with the compliance
requirements referred to above and performing such other procedures as we considered necessary
in the circumstances.
Obtain an understanding of the City's internal control over compliance relevant to the audit in
order to design audit procedures that are appropriate in the circumstances 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 the City's internal control over
compliance. Accordingly, no such opinion is expressed.
We are required to communicate with those charged with governance regarding, among other matters,
the planned scope and timing of the audit and any significant deficiencies and material weaknesses in
internal control over compliance that we identified during the audit.
Report on 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.
7.2
7
Report on Internal Control over Compliance (Continued)
Our consideration of internal control over compliance was for the limited purpose described in Auditor's
Responsibilities for the Audit of Compliance section and was not designed to identify all deficiencies in
internal control over compliance that might be material weaknesses or significant deficiencies in internal
control over compliance. Given these limitations, during our audit we did not identify any deficiencies
in internal control over compliance that we consider to be material weaknesses, as defined above.
However, material weaknesses or significant deficiencies in internal control over compliance may exist
that were not identified.
Our audit was not designed for the purpose of expressing an opinion on the effectiveness of internal
control over compliance. Accordingly, no such opinion is expressed.
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 Awards 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, 2022, and the related notes to
financial statements which collectively comprise the City's basic financial statements. We issued our
report thereon dated May 25, 2023, 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.
The accompanying schedule of expenditures of federal awards is presented for purposes of additional
analysis as required by the Uniform Guidance and is 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 financial statements. The information has
been subjected to the auditing procedures applied in the audit of the financial statements and certain
additional procedures, including comparing and reconciling such information directly to the underlying
accounting and other records used to prepare the financial statements or to the 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
May 25, 2023
7.2
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 2022-001
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? None reported
Any audit findings disclosed that are required to
be reported in accordance with 2 CFR 200.516(a)? No
Identification of Major Programs
Assistance Listing No.: 21.027
Name of Federal Program or Cluster:
Coronavirus State and Local Recovery
Funds
Dollar threshold used to distinguish
between type A and type B programs: $750,000
Auditee qualified as low risk auditee? No
7.2
9
City of Crystal
Schedule of Findings and Questioned Costs
SECTION II – FINANCIAL STATEMENT FINDINGS
Audit Finding 2022-001
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
7.2
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, 2022, and the related notes to financial statements, which collectively comprise the City's
basic financial statements, and have issued our report thereon dated May 25, 2023.
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
May 25, 2023
7.2
Memorandum
DATE: June 6, 2023
TO: City Council
FROM: Mark Ray, PE, Director of Public Works
Ben Perkey, PE, Engineering Project Manager
Emily Schneider, GIS Specialist
SUBJECT: Authorize professional services agreement with LOGIS for GIS Support
Summary
At the May 16th Council meeting, the Council discussed the proposed contract with LOGIS GIS
for GIS support services. The Council tabled the item to a future meeting so more information
could be provided. The new GIS Specialist, Emily Schneider, will be at the June 6 Council work
session and meeting to provide additional background and information on the proposed
contract with LOGIS GIS.
Current costs
The City’s current costs for the various GIS tools that we use are:
- iWater (utility asset management) $12,000 per year (12 devices)
- ESRI Licensing $1,700 per year
- Playground inspection $960 per year
-iWater Cloud service $10,500
o Initial setup, data migration, training
Other Cities with LOGIS GIS
The following cities currently contract with LOGIS for GIS Support: Brooklyn Center, Hutchinson,
Maple Grove, Minnetonka, Ramsey, Robbinsdale, South St Paul, and White Bear Lake.
Background
A few years ago, City staff were notified by our current asset management system vendor that
the vendor was going to be transitioning to a cloud-based system for data management. This is
different than the current system where data is stored on City servers and replica data sets are
7.3
on individual devices. City staff expressed concern about this change since it requires a
continuous cellular connection for the devices to have access to the asset management
information. Should Crystal experience a cellular data outage, or experience a major disaster,
city staff would not have access on their tablets to essential critical infrastructure records and
information which are vital to response during such an event. After conversations with the
vendor, it became clear that they were committed to the cloud-based system and not exploring
any alternatives. Due to the unacceptable risk that would come with this change, City staff
started looking for alternative vendors for a new asset management system.
In preparation for this change in asset management, it became apparent that LOGIS was the
only vendor that could provide support for existing operations and provide the necessary data
backup and support for other city departments. LOGIS Services will provide the City with the
flexibility of having our data stored on local servers (at LOGIS), not on a cloud-based server like
most consulting companies. The City will also have the reliability and support of LOGIS GIS staff
to manage the physical servers and databases. Having LOGIS manage the servers and databases
not only reduces the need for an additional city GIS staff member with background and
experience in server-management, but also eliminates the City having to purchase and manage
its’ own ArcGIS Server Licenses and infrastructure. With LOGIS’s backbone support managing
the enterprise databases and server systems, City staff time can be focused on our GIS data and
developing applications that support both internal and external customers. Additionally, since
various City departments already use other LOGIS-provided services, some of these services will
integrate into LOGIS GIS applications. Thus, the benefits of going with LOGIS GIS support extend
beyond public works.
Staff have received a proposal from LOGIS GIS for professional services associated with GIS
support for Crystal, dated May 5, 2023. The cost includes a combination of three things: ESRI
license costs, LOGIS fees, and data migration (for 2023 only). The city already has some ESRI
licenses which need to be upgraded, so we will get some credit. The data migration cost is only
for the transition of data from the current asset management system’s format to the LOGIS
system’s format, and therefore is not an annual fee.
Proposed costs
The cost for 2023 will be a total of $55,724 which is a combination of three things:
• ESRI license costs ($9,939)
• LOGIS costs ($32,285)
• Data migration (estimated to be $13,500)
The cost for 2024 is estimated to be a total of $67,859 which includes:
• ESRI license costs ($9,939)
• LOGIS costs ($57,920)
7.3
Some of these costs will be offset by the elimination of the existing asset management system
annual fees costs, a reduction in city labor costs due to a recent retirement, and hopefully the
consolidation of some other data management programs. Moving forward these costs will be
included in the normal budgeting process.
Funding
Identical to the existing asset management software, the utility funds will split the cost for
these services.
Attachment
• Professional services agreement dated May 5, 2023, from LOGIS.
Recommended Action
Motion authorizing the Professional Services Agreement with LOGIS for GIS Support Services.
7.3
May 5, 2023
Re: LOGIS GIS Support Proposal
City of Crystal/Mark Ray, Director of Public Works/City Engineer
To Mark Ray:
LOGIS appreciates the opportunity to work with you and the City of Crystal as you make changes to your GIS
environment. The migration of the City of Crystal to updated GIS platforms and support (what LOGIS GIS is
offering) will help you and the City be more effective and efficient with your resources. Though certain aspects of
our below cost outlines are necessities, the City of Crystal has the opportunity to grow and develop over time as
you ascertain the impact these changes have made.
In order for you to prepare and inform others, I am giving a general overview of some key items related to GIS
changes for the City of Crystal:
Esri licensing
The City of Crystal as a LOGIS GIS city for 2023
Data migration/conversion
The City of Crystal as a LOGIS GIS city for 2024
The information and figures presented here are reasonable estimates based upon what is currently known. As the
City of Crystal makes decisions and commitments, agreements will be created to help ensure all involved have a
reasonable understanding of expectations, timelines and details.
Esri Licensing
LOGIS will attempt to share information based upon our knowledge and understanding of Esri and their licensing
process. We understand that when an entity changes from different product and internal support, there are a
significant number of unknowns and opportunities. Each entity has different internal and external demands and
LOGIS may not always be able to ascertain the nuances from city to city. Additionally, budgets may require the
scaling up over time.
Via Email
7.3
Joining LOGIS as a GIS city (and utilizing the LOGIS Enterprise license), the City of Crystal does not have to purchase
server infrastructure on their own and ArcGIS Server software licenses from Esri to build their own Enterprise GIS
system. Your staff also does not need to worry about maintaining the enterprise GIS databases, server systems,
and building the field applications for the city can be a joint effort between the City of Crystal and LOGIS, depending
upon the skillset and time available from Crystal Staff. LOGIS has the expertise to be the City of Crystal’s data,
services, and applications hosting solution.
The City of Crystal still needs to have Esri’s AGOL (ArcGIS Online). This is Esri’s cloud platform where one would
publish to host Survey123 forms, Field Maps, Story Maps, and ArcGIS Hubs. These applications integrate well with
users’ mobile devices to mobilize your workforce. The City of Crystal already has an ArcGIS Online organization
account, so based upon our communications, we believe the City of Crystal would merely need to add more users to
that AGOL agreement with Esri. Based upon what is noted above, and outside of what being LOGIS GIS city would
accomplish, here is LOGIS’ current recommendation for the City of Crystal for Esri licensing:
Crystal GIS Specialist:
o 1-Desktop Advanced Single Use Perpetual license ($4,662 initial upgrade costs and approximately
$3,000 annually post upgrade) *
This is a desktop license for the specialist to do geoprocessing and data editing work on his/her laptop
using ArcGIS Pro. Crystal has one standard license now.
o 1-Arc GIS Online Creator annual subscriptions ($494/each annually) *
This license is for ArcGIS Online (cloud platform). We believe Crystal already has a Standard desktop
license that comes with a free creator seat in AGOL. Our understanding is that the Creator license user
type can do everything Mobile Worker user type can do plus more advanced administrative functions
(Creators have access to a selection of apps, can view contents created by other organization members,
and can administer users and contents in the organization as well as configure AGOL security for your
organization). The Crystal GIS Specialist would need both this and the above-noted Desktop Advanced
license.
Director of Public Works/City Engineer and Engineering Project Manager
o 2-Creator license ($494/each annually = $988) *
Field Workers
o 11-Mobile Worker licenses ($345/each annually = $ 3,795) *
Estimated Annual Esri license Total: $9,939
*All Esri costs are estimates and the City of Crystal needs to confirm with Esri. Any licenses are subject to
Esri requirements and/or recommendations which also includes what Esri does/does not allow for
sharing. Any Esri licensing requirements (and the related management and costs) specific for the City of
Crystal that is not covered under LOGIS and the LOGIS/Esri Enterprise License Agreement, based upon the
City’s needs, will be between Esri and the City of Crystal.
7.3
LOGIS Services
Base Fees
One of the primary aspects related to the base fee is the access to the enterprise database and server. This gives
LOGIS GIS cities the power and depth of an enterprise service, and technical support (related to infrastructure)
provided by LOGIS, without each entity having to pay for that individually.
As part of being a LOGIS GIS city, some of the support and service provided include virtual servers, LOGISMap, Esri
Enterprise licenses, SQL Server licenses, back up including disaster recovery and, LOGIS Support from GIS and the
systems support from the skilled individuals in our Network Services group.
Elective Fees
LOGIS has used the term "elective fees" for a number of years; however, elective does not indicate optional. These
fees are associated with products, applications and services that will be supplemental to building the whole GIS
system for internal and external use. With the “elective fees” LOGIS GIS Cities receive more constant products and
services that all LOGIS GIS cities are using by tapping into the LOGIS resources that are necessary for any GIS entity
to use. These include the time, effort and resources to host applications, data, and other services; and these
applications and services have foundational similarities but can vary in complexity and the related support and
resources to manage them.
For example:
Apps: LOGISMaps, Parcel viewer, Parks finder, zoning maps, citizen report (service request) tool, operation
dashboards.
Services: all GIS layers of interest can be published in the above apps. E.g. administrative boundaries,
parcels, zoning layers, parks, transportation network, roads, city-owned buildings and assets.
Staff augmentation
Staff augmentation includes support and on-site consultation in order for LOGIS to support your GIS needs. This
includes project development, developing a management and administrative support plan along with security.
Additionally, this gives you dedicated resources and helps you and other staff members with change management
with your current staff as well as the on-boarding of new people.
7.3
City of Crystal as a LOGIS GIS City/2023
For all LOGIS GIS cities, the budget is developed annually based upon three main inter-related components: a
base fee (LOGIS, LOGIS GIS staffing and technical support along with software and hardware for the GIS
environment, and LOGIS Map); elective fees (app services and data hosting); and Staff Augmentation.
For the City of Crystal, for the remainder of 2023, the LOGIS GIS fixed cost estimates are:
Base Fee $17,200
o (prorated from $29,500)
Elective Fee $7,000
o (prorated from $12,000)
Staff Augmentation $7,560
o 56 hours (prorated from 8 hours/month for 12 months)
o $135/hour (LOGIS hourly Support Fee for 2023)
o prorated from $ 12,960
Fund 02 (Development Fund/prorated from $900)
o $525
Total for 2023
o $32,285 plus data migration costs and ESRI Licensing fees
Please note, these 2023 LOGIS support costs are prorated, beginning June 1, 2023; it will be adjusted accordingly
for different start dates.
Data Migration/Conversion
The current state of Crystal’s GIS data is not fully known to LOGIS. Based upon the development of the
stormwater infrastructure data proof-of-concept (POC), LOGIS GIS has a general understanding of the data and its
existence in an Access database. In the event other Crystal GIS data resides elsewhere and is in a different format,
that will require further LOGIS GIS review. LOGIS GIS would need to convert that data in order for it to be useful
in the LOGIS and Esri environments. This is above any Staff Augmentation hours.
With a number of unknowns related to the true state of the City of Crystal’s GIS data, a specific cost for data
conversion is difficult to identify the actual number of hours for a such a project. The question may arise as to
whether or not Crystal staff can do the data conversion: even if the individual(s) have the skillset for the data
conversion from the Access database, the data needs to meet the requirements of LOGIS and Esri systems; LOGIS
training, supervision and potential corrections on such a work path may likely require a significant amount of
extra or redundant work which could impact timetables. To help facilitate this migration, our recommendation at
this time is that Crystal GIS Staff exports existing GIS data and inspection records from iWater system to an Esri
file geodatabase and most, if not all, of the data conversion to a standardized Esri Enterprise database be
7.3
completed by LOGIS.
Based upon what is currently known we estimate a minimum of:
o 100 hours at $135/hour = $13,500 (based upon 2023 LOGIS Support hourly rate)
City of Crystal as a LOGIS GIS City/2024
For the City of Crystal, the 2024 LOGIS GIS fixed cost estimates are:
Base Fee $31,000
Elective Fee $12,000
Staff Augmentation $13,920
o 96 hours
o $145/hour (LOGIS hourly Support Fee for 2024)
Fund 02 (Dev. Fund) $ 1,000
Total for 2024 $57,920 plus ESRI licensing fees
Please note, these 2024 LOGIS GIS budget costs are estimates only. 2024 LOGIS Budget processes have recently
begun and draft 2024 figures have not been finalized. LOGIS budget estimates will be distributed in/around the
end of May with a Board of Directors budget meeting in June; the 2024 budget adoption is on July 27, 2023 at the
quarterly LOGIS Board of Directors Meeting. Also, future project requests by the City of Crystal which require
working with third-party software/products will likely be considered special projects and are outside of the
normal support scope.
Conclusion
We greatly appreciate the opportunity for LOGIS to offer assistance and services to the City of Crystal. Based
upon the development of a proof-of-concept and a number of communications, we hope the City of Crystal finds
value in what LOGIS GIS can offer you. Efforts by both LOGIS and the City of Crystal to properly develop a solid
business relationship and to help the City of Crystal properly grow its GIS department, LOGIS is recommending
consideration of a three-year commitment, minimally.
Please let us know if you have further questions; we will work to answer those so we can move ahead with
agreements for future LOGIS GIS support.
The City of Crystal agrees to the above-noted terms for LOGIS GIS support for the remainder of 2023 and for all of
2024. This includes the additional work related to data migration.
____________________________________ ________________________ __________________
7.3
Printed Name/Title Signature Date
7.3
RESOLUTION NO. 2023- ___
AUTHORIZING PROFESSIONAL SERVICES CONTRACT
FOR LOGIS GIS SUPPORT
WHEREAS, the maintaining and reconstructing of City infrastructure is an essential
service in the City of Crystal; and
WHEREAS, the existing asset management system no longer meets the needs of the City;
and
WHEREAS, LOGIS GIS support services will meet the needs for asset management
information systems and providing redundant backups of the data for the City; and
WHEREAS, the City of Crystal is already a LOGIS member City; and
WHEREAS, the equipment and software licensing required to provide geographic
information system (GIS) information in the way the City needs it is beyond the current
capabilities of the City;
NOW, THEREFORE, BE IT RESOLVED that the Crystal City Council hereby
authorizes the agreement for professional services with LOGIS for GIS Support Services.
BE IT FURTHER RESOLVED that the City Manager is hereby authorized to sign said
contract.
Adopted by the Crystal City Council this 6th day of June, 2023.
_____________________________
Jim Adams, Mayor
ATTEST:
_____________________________
Christina Serres, City Clerk
7.3