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2024.06.04 Council Meeting Packet 4141 Douglas Drive North • Crystal, Minnesota 55422-1696 Tel: (763) 531-1000 • Fax: (763) 531-1188 • www.crystalmn.gov Posted: May 31, 2024 City Council Meeting Schedule Tuesday, June 4, 2024 Time Meeting Location 6:30 p.m. City Council work session to discuss: 1. West Metro Fire-Rescue District 2025 budget follow-up. 2. Hennepin Recycling Group - Organized Organics Collection Proposal. 3. Constituent issues. 4. New business. 5. 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 4, 2024, 6:30 p.m., Central Time (US and Canada) Join Zoom Meeting: https://us02web.zoom.us/j/83506455235?pwd=IXZlY5wKwa54GZAmrZexFqbdYd8j92.1 Meeting ID: 835 0645 5235 | Passcode: 414141 One tap mobile: +19292056099,,83506455235#,,,,*414141# US (New York) +13017158592,,83506455235#,,,,*414141# US (Washington DC) Dial by your location: +1 929 205 6099 US (New York) +1 689 278 1000 US +1 301 715 8592 US (Washington DC) +1 719 359 4580 US +1 305 224 1968 US +1 253 205 0468 US +1 309 205 3325 US +1 253 215 8782 US (Tacoma) +1 312 626 6799 US (Chicago) +1 346 248 7799 US (Houston) +1 646 931 3860 US +1 360 209 5623 US +1 564 217 2000 US +1 386 347 5053 US +1 669 444 9171 US +1 507 473 4847 US +1 669 900 6833 US (San Jose) Find your local number: https://us02web.zoom.us/u/kdzZEdndB9 Auxiliary aids are available upon request to individuals with disabilities by calling the city clerk at (763) 531-1145 at least 96 hours in advance. TTY users may call Minnesota Relay at 711 or 1-800-627-3529. 4141 Douglas Drive North • Crystal, Minnesota 55422-1696 Tel: (763) 531-1000 • Fax: (763) 531-1188 • www.crystalmn.gov Posted: May 31, 2024 City Council Work Session Agenda Tuesday, June 4, 2024 6:30 p.m. Council Chambers/Zoom Pursuant to due call and notice given in the manner prescribed by Section 3.01 of the City Charter, the work session of the Crystal City Council was held on Tuesday, June 4, 2024, 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 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 4, 2024. I. Attendance Council members Staff ____ Kamish ____ Bell ____ Kiser ____ Tierney ____ Onesirosan ____ Therres ____ Adams ____ Elholm ____ Budziszewski ____ Hubbard ____ Cummings ____ Larson ____ Eidbo ____ Struve ____ Sutter ____ Serres II. Agenda The purpose of the work session is to discuss the following agenda items: 1. West Metro Fire-Rescue District 2025 budget follow-up. 2. Hennepin Recycling Group - Organized Organics Collection Proposal. 3. Constituent issues.* 4. New business.* 5. Announcements.* III. Adjournment The work session adjourned at ______ p.m. * Denotes no documentation 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. 1 To: WMFRD Board of Directors From: Sarah Larson, Fire Chief Date: May 8, 2024 Subject: Preliminary 2025 General Operating Budget Line Item Explanatory Information for Changes from 2024 2025-2029 Capital Plan 2025 Preliminary Budgets and Contributions General Operating Budget - $2,855,674 Capital Fund Contribution - $325,000 Special Revenue Pension Fund Contribution - $200,000 Special Revenue Insurance Fund Contribution - $10,000 Special Revenue Compensated Absences Fund Contribution - $10,000 Tower Lease - $103,600 Engine Lease - $212,325 ____________________________________________________________________ Total $3,716,599 The cities’ preliminary 2025 total contribution is $3,716,599 which is $1,800,351.01 for Crystal and $1,916,247.99 for New Hope. This is an increase of $165,734.42 or 10.14% for Crystal and an increase of $186,364.58 or 10.77% for New Hope. This is an increase of $352,099 over the 2024 contributions or 10.47%. The general operating budget increase is $214,774 or 8.13%. The driving force of this increase is salaries, incentive pay for POC firefighters, PERA, health insurance, workers comp insurance, financial services and communications. There is a $75,000 increase to the capital plan contribution. These contributions include a $103,600 lease payment for the tower. These contributions include a $212,325 lease payment for the new engines. This is a $62,325 increase over 2024. 2025 Preliminary Budget Contribution Increase from 2024 ($3,364,500) to 2025 ($3,716,599) General Operating $214,774 6.38% Capital Plan $75,000 2.23% Engine Lease $62,325 1.85% Total $352,099 10.47% Memorandum 2 2026 Projected Budget Contribution Increase from 2025 ($3,716,599) to 2026 ($4,014,566) General Operating $182,967 4.92% Capital Plan $75,000 2.02% Engine Lease $40,000 1.08% Total $297,967 8.02% An estimate of the 2026 increase to the cities’ total budget contributions is $297,967 or 8.02%. There is a $75,000 increase to the capital plan contribution. The 2026 cities’ contribution to the engine lease is $252,325 an increase to the engine lease of $40,000 or 1.08% over the potential 2025 cities’ contributions. The cities’ contribution to the engine lease is again $252,325 in 2027. The engine lease contributions stabilize in 2028 at $287,325 annually. 2027 Projected Budget Contribution Increase from 2026 ($4,014,566) to 2027 ($4,476,325) is projected at $461,759 or 11.5% For Historical Reference: 2024 Budgets and Contributions General Operating Budget - $2,640,900 Capital Fund Contribution - $250,000 Special Revenue Pension Fund Contribution - $200,000 Special Revenue Insurance Fund Contribution - $10,000 Special Revenue Compensated Absences Fund Contribution - $10,000 Tower Lease - $103,600 Engine Lease - $150,000 ____________________________________________________________________ Total $3,364,500 The cities’ preliminary 2024 total contribution was $3,364,500 which was $1,634,617 for Crystal and $1,729,883 for New Hope. This was an increase of $155,244 or 10.5% for Crystal and an increase of $178,066 or 11.5% for New Hope. This was an increase of $333,310 over the 2023 contributions or 11%. There was a $50,000 offset (carryover from 2022 Public Assistance Grant) to the 2023 budget to lower the cities’ contributions so the actual increase to the budget was $283,310 or 9.2%. The 2024 budget was 9.2% more than 2023. The 2024 contribution was 11% more than 2023. The difference is the $50,000 offset expiring. The general operating budget increase was $183,310 or 7.5%. There was a $20,000 increase to the special revenue pension fund contribution. 3 These contributions included a $103,600 lease payment for the tower. These contributions included a $150,000 lease payment for the new engines. This was an $80,000 increase over 2023. Line Item Explanatory Information for Reductions and Increases of the preliminary 2025 General Operating Budget Personnel $1,126,000 61500 - Regular Salaries $113,000 increase. This includes consideration of a 3% COLA, comp payout, OT for non-exempt employees, and lieutenant gap in pay for SAFER employees due to updated comp plan. $650,000 62000 - Part - Time Salaries $70,000 increase. This includes all POC positions and consideration of a 3% COLA. $200,582 62200 - PERA $20,582 increase based on full-time salaries. These full-time employees do not earn relief association pension. $66,568 62800 - Social Security & Medicare $6,568 increase based on salaries. $12,000 65500 – Uniforms $2,000 increase based on having 11 full-time employees and hiring a large group of POC firefighters in 2024. Insurance $5,500 63500 - Health Savings Account (HSA) No change. This line is part of the health insurance benefit provided by the District. $123,840 63800 - Health Insurance $11,160 decrease based on the SAFER grant covering 100% of the health insurance costs for the 3 lieutenants and a projected minimal increase to the premium. $6,502 63900 - Long Term Disability $1,402 increase based on projected premium increase. $1,182 64000 - Life Insurance $282 increase based on projected premium increase. $141,000 64500 - Workers Comp Insurance $29,000 decrease based on historical data and reimbursement From the SAFER grant. Supplies $2,300 70500 - Office Supplies No change. $2,200 72500 - Cleaning No change. $9,000 74000 - Operating No change. $3,000 75500 - Tools & Equipment No change. $28,000 76000 - Motor Fuels $3,000 increase based on historical data and continued rising 4 costs. $15,000 77000 - Turn-Out Gear $3,000 increase based on historical data and continued rising costs. $1,000 79000 - Fire Prevention No change. Service $0 80200 - Consultant $500 decrease based on removing this line item. $6,000 80600 - Legal Fees No change. $40,000 80800 - Medical Exams No change. Communication and Delivery $0 81400 - Postage & Delivery $100 decrease based on removing this line item. $160,000 81800 - Communications $20,000 increase based on expected increases to expenditures For LOGIS, Hennepin County Radio and analytic software. Utilities $21,000 83200 - Electric No change based on historical data. $8,000 83400 - Water/Sewer $1,000 increase based on increased use from staffing an additional station. $30,000 83600 – Natural Gas $5,000 increase based on historical data and increased use from staffing an additional station. Contract Maintenance $16,000 84000 - Building Maintenance $1000 increase based on projected increase to the cost of the & Cleaning service. $10,000 84200 - Building Repairs No change. $24,000 84400 - Equipment Repairs No change. $31,000 84600 - Vehicle Repairs No change. Rent $5,000 85400 - Office Equipment Rent $2,000 increase based on adding another printer lease for Station 1. 5 Dues, Subscriptions, & Training $3,000 86200 - Dues & Subscriptions No change. $1,000 86400 - Awards No change based on the use of special donation funds. $30,000 86800 - Training No change based on historical data and reimbursements from the state. $0 86900 - Licenses & Permits No change due to a reoccurring cost every three years for firefighter licenses. Miscellaneous $0 87400 – Printing $300 decrease based on removing this line item. $77,000 87700 - Financial Services $7,000 increase based on increased costs due to updated contract. $2,855,674 Total General Operating Expenditures BUDGET HISTORY 2005 – Aerial put into service w/ replacement between 2025 and 2030 1,500,000 2007 – SCBA put into service cost partially offset by FEMA Grant w/ replacement 2020 500,000 2008 – Turn Out Gear put into service beginning 2015 replace 10-15 sets per year 35,000 2012 – Placed 4 engines into service w/ replacement between 2025 and 2032 3,000,000 2012 – Removed Heavy Rescues from Major Apparatus Plan (1,400,000) 2012 - Squad 1 put into service 500,000 2013 - Capital Funding Plan w/ Forecast to 2025 Developed 240,000 2013 - Added 1 Light Rescue into Capital Plan w/ replacement between 2023 -2025 100,000 2014 – Added 2 Light Rescues into Capital Plan w/ replacement between 2023 -2025 200,000 2014 – Closed Major Apparatus Fund and moved fund balance to capital plan (100,000) 2014 – Created Special Revenue Pension Fund 250,000 2017 – Sale of 2004 Aerial (337,500) 2017 – Lease Tower 1,049,620 6 2019 - Board Approved Fund Policy Statements 2020 – Created Special Revenue Insurance Fund 40,000 2020 - Created Special Revenue Compensated Absences Fund 10,000 2020 – Purchase SCBA 450,000 2021 – Engine Lease 2,619,444 2022-2023 – Sale of (4) 2011 Engines (484,740) ANNUAL CAPITAL EXPENDITURES/COMMITMENTS The WMFRD has the following reoccurring annual capital expenditures or savings for future expenditures through 2029: SCBA 50,000 - Saving towards future expenditure Rescue Trucks (3) 30,000 - Saving towards future expenditure Radios 20,000 - Saving towards future expenditure Thermal Imagers 5,000 - Saving towards future expenditure Hydraulic Tools 10,000 - Saving towards future expenditure Power Tools 10,000 Nozzles/Hose 20,000 - Saving towards future expenditure Public Education Props 5,000 - Saving towards future expenditure AED 2,500 Turn out Gear 50,000 LOGIS/Admin/IT 20,000 Overhead Door Maintenance 5,000 Utility/Staff Vehicle 65,000 Total 292,500 COMMITTED CAPITAL FUNDS END OF 2024 Bathroom 72,000 Thermal Cameras 5,000 Hydraulic Tools 10,000 SCBA 50,000 Telephones 10,000 Radios 100,000 Hose 10,000 Nozzles 10,000 Public Education Props 10,000 Training Room Furniture 50,000 Rescues 270,000 Major Apparatus 609,740 Total Committed Funds 1,206,740 2024 – Cities’ Contributions 250,000 Beginning Fund 1,956,424 Committed -1,206,740 Expenditures -571,100 Ending Non-Committed Fund Balance 178,584 Fund Balance 1,385,324 7 2025 -2029 CAPITAL PLAN 2025 – Cities’ Contributions 325,000 Beginning Fund 2,026,249 Committed -1,086,740 Expenditures -903,425 Ending Non-Committed Fund Balance 36,084 Fund Balance 1,122,824 2026 – Cities’ Contributions 400,000 Beginning Fund 1,903,749 Committed -869,744 Expenditures -907,921 Ending Non-Committed Fund Balance 126,084 Fund Balance 995,828 2027 – Cities’ Contributions 300,000 Beginning Fund 1,598,153 Committed -1,019,744 Expenditures -439,825 Ending Non-Committed Fund Balance 138,584 Fund Balance 1,158,328 2028 – Cities’ Contribution 300,000 Beginning Fund 1,695,653 Committed -1,119,744 Expenditures -497,325 Ending Non-Committed Fund Balance 78,584 Fund Balance 1,198,328 2029 – Cities’ Contributions 300,000 Beginning Fund 1,785,653 Committed -1,279,744 Expenditures -497,325 Ending Non-Committed Fund Balance 68,584 Fund Balance 1,348,328 Cities’ Contribution to Capital Plan 2025 325,000 2026 400,000 2027 300,000 2028 300,000 2029 300,000 8 STAFF/UTILITY VEHICLES Funding for the replacement of the following staff, utility, grass and light rescue vehicles is included as part of the capital plan. STAFF VEHICLES YEAR MAKE/MODEL USE REPLACEMENT YEAR REPLACEMENT COST C-1 2019 Toyota Highlander Command 2031 65,000 C-2 2019 Ford F-150 Command 2030 65,000 C-3 2024 GMC Canyon Command 2033 65,000 C-4 2024 Ford F-150 Inspection 2034 65,000 C-5 2015 Chevy Tahoe Command 2027 65,000 C-6 2017 Chevy Tahoe Command 2029 65,000 C-7 2016 Chevy Tahoe Command 2028 65,000 C-8 2024 Chevy Suburban Training 2035 75,000 U-11 2020 Chevy Silverado Utility 2032 65,000 U-31 2013 Ford F-350 Utility 2027 65,000 U-21 2011 Ford F-350 Diesel Utility 2026 55,000 U-32 GRASS 2009 Ford F-350 Diesel Grass 2025 65,000 R-11 2013 Ford F-350 Light Rescue 2025 120,000 R-21 2014 Ford F-350 Light Rescue 2025 120,000 R-31 2014 Ford F-350 Light Rescue 2025 120,000 MAJOR APPARATUS In 2014 it was reaffirmed by both cities that each city would fund their respective portions of the costs of replacement of major equipment rather than have the District save for these purchases. The following equipment is considered major apparatus: MAJOR APPARATUS YEAR MAKE/MODEL USE REPLACEMENT YEAR REPLACEMENT COST Engine 1 (Lease) 2023 Pierce Enforcer Pumper 2032 1,500,000 Engine 2 (Lease) 2023 Pierce Enforcer Pumper 2032 1,500,000 Engine 3 (Lease) 2023 Pierce Enforcer Pumper 2032 1,500,000 Engine 4 (Lease) 2023 Pierce Enforcer Pumper 2032 1,500,000 Squad 1 2012 E - ONE/Quest Heavy Rescue 2032 1,500,000 Tower 1 (Lease) 2017 Pierce/Arrow XT Platform 2026 2,500,000 ((a/A) + (p/P) + (v/V) / 3) x 100 = Percentage of total budget due from specified municipality Crystal New Hope District a = municipality's avg. calls over 5 years 873 1,103 p = municipality's population (2020 census)23,330 21,986 v = municipality's taxable market value in millions 2,770 2,808 A = district's avg. calls over 5 years no mutual aid 1,976 P = district's population (2020 census)45,316 V = district's taxable market value in millions 5,578 Percentage a/A 44.1802%55.8198% Percentage p/P 51.4829%48.5171% Percentage v/V 49.6594%50.3406% 48.4408%51.5592%100.00% 100.0000% Required contributions from cities $1,800,351.01 $1,916,247.99 $3,716,599.00 Monthly contribution $150,029.25 $159,687.33 (1) Average calls based on calls for the years 2019 through 2023 without mutual aid. (2) 2024 Taxable market values from Hennepin County report dated 12/20/2023 Contributions from Cities Set to Equal: 2025 General Fund Operating Budget $2,855,674 2025 Capital Plan Budget $325,000 2025 Pension Special Revenue Fund $200,000 2025 Insurance Special Revenue Fund $10,000 2025 Compensated Absences Special Revenue Fund $10,000 2025 Aerial Lease $103,600 2025 Engine Lease $212,325 2025 Total Amount to be Contributed from Cities $3,716,599 WEST METRO-FIRE RESCUE DISTRICT Cost Sharing Formula Calculation in 2024 for use in the 2025 Budget 5/31/2024 2:33 AM West Metro Fire PROPOSED 2025 BUDGET West Metro Fire Proposed 2025 Budget 2025 Preliminary Budgets and Contributions 2025 2024 General Operating Budget $2,855,674 $2,640,900 Capital Fund Contribution $325,000 $250,000 Special Revenue Pension Fund Contribution $200,000 $200,000 Special Revenue Insurance Fund Contribution $10,000 $10,000 Special Revenue Compensated Absences Fund Contribution $10,000 $10,000 Tower Lease $103,600 $103,600 Engine Lease $212,325 $150,000 Total $3,716,599 $3,364,500 West Metro Fire Proposed 2025 Budget The cities’ preliminary 2025 total budget contribution is $3,716,599 which is $1,800,351.01 for Crystal and $1,916,247.99 for New Hope. This is an increase of $352,099 over the 2024 contributions or 10.47%. This is an increase of $165,734.42 or 10.14% for Crystal and an increase of $186,364.58 or 10.77% for New Hope. The general operating budget increase is $214,774 or 8.13%. The driving force of this increase is salaries, incentive pay for POC firefighters, PERA, health insurance, workers comp insurance, financial services and communications. There is a $75,000 increase to the capital plan contribution. These contributions include a $103,600 lease payment for the tower. These contributions include a $212,325 lease payment for the new engines. This is a $62,325 increase over 2024. West Metro Fire Proposed 2025 Budget 2025 Preliminary Budget Contribution Increase from 2024 ($3,364,500) to 2025 ($3,741,599) General Operating $214,774 6.38% Capital Plan $75,000 2.23% Engine Lease $62,325 1.85% Total $352,099 11.18% West Metro Fire Proposed 2025 Budget 2026 Projected Budget Contribution Increase from 2025 ($3,741,599) to 2026 ($4,064,566) General Operating $182,967 4.92% Capital Plan $75,000 2.02% Engine Lease $40,000 1.08% Total $297,967 8.02% West Metro Fire Proposed 2025 Budget 2027 Projected Budget Contribution Increase from 2026 ($4,014,566) to 2027 ($4,476,325) is projected at $461,759 or 11.5%. West Metro Fire Proposed 2025 Budget The engine lease contributions stabilize in 2028 at $287,326 annually. West Metro Fire Proposed 2025 Budget Changes from 2024 $1,126,000 61500 -Regular Salaries $113,000 increase. This includes consideration of a 3% COLA, comp payout for non-exempt employees, OT for non-exempt employees, and lieutenant gap in pay for SAFER employees. $650,000 62000 -Part -Time Salaries $70,000 increase. This includes all POC positions and consideration of a 3% COLA. $200,582 62200 -PERA $20,582 increase based on full-time salaries. These full-time employees do not earn relief association pension. $66,568 62800 -Social Security & Medicare $6,568 increase based on salaries. $12,000 65500 –Uniforms $2,000 increase based on having 11 full-time employees and hiring a large group of POC firefighters in 2024. West Metro Fire Proposed 2025 Budget Changes from 2024 $123,840 63800 -Health Insurance $11,160 decrease based on the SAFER grant covering 100% of the health insurance costs for the 3 lieutenants and a projected minimal increase to the premium. $6,502 63900 –Long Term Disability $1,402 increase and includes based on historical data. $1,182 64000 -Life Insurance $282 increase based on projected premium increase. $141,000 64500 -Workers Comp Insurance $29,000 decrease based on historical data and reimbursement from the SAFER grant. $28,000 64000 –Motor Fuels $3,000 increase based on historical data and continued rising costs. West Metro Fire Proposed 2025 Budget Changes from 2024 $15,000 77000 –Turn -out Gear $3,000 increase based on historical data and continued rising costs. $0 80200 -Consultant $500 decrease based on removing this line item. $0 81400 –Postage & Delivery $100 decrease based on removing this line item. $160,000 81800 -Communications $20,000 increase based on expected increases to expenditures for LOGIS, Hennepin County Radio, and analytic software. $8,000 83400 -Water/Sewer $1,000 increase based on increased use from staffing an additional station. West Metro Fire Proposed 2025 Budget Changes from 2024 $30,000 83600 –Natural Gas $5,000 increase based on historical data and increased use from staffing an additional station. $16,000 84000 -Building Maintenance $1000 increase based on projected increase to the cost of the & Cleaning service. $5,000 85400 -Office Equipment Rent $2,000 increase based on adding another printer lease for Station 1. $0 87400 -Printing $300 decrease based on removing this line item. $77,000 87700 -Financial Services $7,000 increase based on increased costs due to updated contract. West Metro Fire Proposed 2025 Budget 2025 -2029 CAPITAL PLAN 2025 –Cities’ Contributions 325,000 Beginning Fund 2,026,249 Committed (1,086,740) Expenditures (903,425) Ending Non-Committed Fund Balance 36,804 Fund Balance 1,122,824 2026 –Cities’ Contributions 400,000 Beginning Fund 1,903,749 Committed -869,744 Expenditures -907,921 Ending Non-Committed Fund Balance 126,084 Fund Balance 995,828 West Metro Fire Proposed 2025 Budget 2025 -2029 CAPITAL PLAN 2027 –Cities’ Contributions 300,000 Beginning Fund 1,598,153 Committed (1,019,744) Expenditures (439,825) Ending Non-Committed Fund Balance 138,584 Fund Balance 1,158,328 2028 –Cities’ Contributions 300,000 Beginning Fund 1,695,653 Committed (1,119,744) Expenditures (497,325) Ending Non-Committed Fund Balance 78,584 Fund Balance 1,198,328 West Metro Fire Proposed 2025 Budget 2025 -2029 CAPITAL PLAN 2029 –Cities’ Contributions 300,000 Beginning Fund 1,785,653 Committed (1,279,744) Expenditures (437,325) Ending Non-Committed Fund Balance 68,584 Fund Balance 1,348,328 ((a/A) + (p/P) + (v/V) / 3) x 100 = Percentage of total budget due from specified municipality Crystal New Hope District a = municipality's avg. calls over 5 years 858 1,064 1,922 p = municipality's population (2020 census)23,330 21,986 45,316 v = municipality's taxable market value in millions 2,708 2,748 A = district's avg. calls over 5 years no mutual aid 1,922 P = district's population (2020 census)45,316 V = district's taxable market value in millions 5,456 Percentage a/A 44.6364%55.3636% Percentage p/P 51.4829%48.5171% Percentage v/V 49.6334%50.3666% 48.5842%51.4158%100.00% 100.0000% Required contributions from cities $1,634,616.59 $1,729,883.41 $3,364,500.00 Monthly contribution $136,218.05 $144,156.95 (1) Average calls based on calls for the years 2018 through 2022 without mutual aid. (2) 2023 Taxable market values from Hennepin County report dated 12/27/2022 Contributions from Cities Set to Equal: 2024 General Fund Operating Budget $2,640,900 2024 Capital Plan Budget $250,000 2024 Pension Special Revenue Fund $200,000 2024 Insurance Special Revenue Fund $10,000 2024 Compensated Absences Special Revenue Fund $10,000 2024 Aerial Lease $103,600 2024 Engine Lease $150,000 2024 Total Amount to be Contributed from Cities $3,364,500 WEST METRO-FIRE RESCUE DISTRICT Cost Sharing Formula Calculation in 2023 for use in the 2024 Budget ((a/A) + (p/P) + (v/V) / 3) x 100 = Percentage of total budget due from specified municipality Crystal New Hope District a = municipality's avg. calls over 5 years 873 1,103 p = municipality's population (2020 census)23,330 21,986 v = municipality's taxable market value in millions 2,770 2,808 A = district's avg. calls over 5 years no mutual aid 1,976 P = district's population (2020 census)45,316 V = district's taxable market value in millions 5,578 Percentage a/A 44.1802%55.8198% Percentage p/P 51.4829%48.5171% Percentage v/V 49.6594%50.3406% 48.4408%51.5592%100.00% 100.0000% Required contributions from cities $1,800,351.01 $1,916,247.99 $3,716,599.00 Monthly contribution $150,029.25 $159,687.33 (1) Average calls based on calls for the years 2019 through 2023 without mutual aid. (2) 2024 Taxable market values from Hennepin County report dated 12/20/2023 Contributions from Cities Set to Equal: 2025 General Fund Operating Budget $2,855,674 2025 Capital Plan Budget $325,000 2025 Pension Special Revenue Fund $200,000 2025 Insurance Special Revenue Fund $10,000 2025 Compensated Absences Special Revenue Fund $10,000 2025 Aerial Lease $103,600 2025 Engine Lease $212,325 2025 Total Amount to be Contributed from Cities $3,716,599 WEST METRO-FIRE RESCUE DISTRICT Cost Sharing Formula Calculation in 2024 for use in the 2025 Budget Memorandum DATE: May 30, 2024 TO: Mayor and City Council FROM: Adam R. Bell, City Manager SUBJECT: HRG – Organized Organics Collection Proposal ____________________________________________________________________ Background Beginning in 2024, all cities in Hennepin County were required to begin following Hennepin County’s Ordinance 13, which requires cities to provide organized weekly, curbside collection of organic waste or require licensed waste haulers operating in the city to offer the same service. The Hennepin Recycling Group (HRG) member cities all directed their respective staff to work with the HRG and look into adding the organized collection of organics to the existing recycling services provided through HRG. In addition, the City of Brooklyn Park, whose staff administers the HRG, was also interested in this, and was part of the proposal. Therefore, HRG Adminstrator Pratt issued a Request-for-Proposal for curbside collection of source-separated organic materials and received a sole response from the current HRG recycling services provider, Waste Management. The proposal is for three to five years of curbside collection of source-separated organic materials collection of source-separated organic materials in all 4 cities. No start date was proposed, but it would function similarly to the current curbside recycling program. Licensed haulers would no longer be required to offer curbside collection of source-separated organic materials to their customers. Unknown at this point is how the proposed contract would impact the existing collection of centralized organics recycling at the existing recycling drop-off site. Attached is the response to the Hennepin Recycling Group’s RFP for organized curbside collection of source-separated organic materials. 3. Budget Impact: The proposal pricing for organics curbside collection is based on the percentage of properties participating. For 2024, rates range from $2.90 per month for up to 10% participation to $5.43 per month for up to 40% participation, with annual increases based on the CPI - WST ( Consumer Price Index for Water, Sewer, and Trash). Based on the current estimate of participation, it is anticipated the organics rate would start on the low end of $3.00. However, that may increase over the contract period as participation in organics increases. Anecdotal evidence from residents reports that they are currently paying $5.00 - $8.50 per month for organics collection through their private haulers. Recommended Action No formal action is required at this time, but the council is being asked to provide feedback on the issue. This item is being discussed at the next HRG Board Meeting. When last discussed by HRG members, the other HRG cities and Brooklyn Park were all expected to adopt organized organics collection whether done within or outside of the HRG. w ® WASTE MANAGEMENT May 22, 2024 Mr Tim Pratt 9300 Noble Ave N Brooklyn Park, MN 55443 ORGANICS PROPOSAL-Orgainics Services for the City of Brooklyn Park and Hennepin Recycle Group Dear Mayor, Staff, and City Council, Waste Management is pleased to submit this Organics Proposal for the City of Brooklyn Park and Hennepin Recycle Group. Waste Management has built a working relationship with not only the City Staff and Administration, but also the Residents of the community. We appreciate the opportunity to provide improved service and relationships for years to come. This Organics Proposal aligns with the City's interest of preserving its goals of limiting the wear and tear on City streets though use of a single hauler, reducing noise, exceeding industry safety standards, having a clean environment, and securing the best rate for recycling collection. WM views the City's interests as the highest priority, and the service and proposal has been customized to meet and exceed these goals. Collection schedules and routes are established, containers are already on site, and experienced staff are attending to the needs and requests of the residents and City. We look forward to continuing our work with the with Brooklyn Park and Hennepin Recycle Group, and the option of strengthening our relationship as a community service provider and partner. Please feel free to contact me with any additional questions you may have. Sincerely, Jason Hartman Waste Management of Minnesota, Inc. Jhartma5@wm.com 612-271-7863 1 Cit y of Brookl yn Park and Henne pin Rec ycle Grou p, Organics Pr posal We would like to propose a 3 to 5 year Organics Service for the City of Brooklyn Park and Hennepin Recycle Group. Monthly Organic Rates Per Household 0 -10% $2.90 11 -20% $3.75 21-30% $4.63 31-40% $5.43 Proposed organic rates for weekly residential collection with WM supplied 64-gallon carts, transfer, and material processing. Annual Pl's using CPI WST. Pricing based on all residents paying for service and then opting in for collection. Carts will only be delivered to a resident once they opt in for service. Organic terms and conditions per SET Acceptable Material List 2 The MULCH STO RE Acceptable Material List Empire Organics Processing Facility 16454 Blaine Avenue East Rosemount, MN 55068 Material Category: Food Scraps The following chart does not represent a complete listing of materials. Accepted Not Accepted (small amounts are accepted) • Fruits and vegetables • Grease or oil* o Peelings, pits, shells and rinds • Chewing gum • Meat, fish, shellfish and bones • Stickers on produce o Bones, scales and shells • Liquids* • Dairy products o Yogurt, cheese, butter • Eggs and eggshells • Bakery and dry goods o Pasta, grains, beans and rice o Bread and cereal o Nuts and shells o Dough, pastries and pies • Pet food * Incidental amounts are accepted. Specialized Environmental Technologies, Inc. Page 1 of 3 Material Category: Paper • Soiled paper • Food-soiled paper Notes: 1. Recyclable paper should be recycled, including clean pizza boxes. 2. Messaging should be tied to paper products that are food related. • Composters mostly want the food but will accept food service packaging as a vessel to help divert food to the organics recycling/composting stream. • Molded paper items (paper plates, bowls, lunch trays, and clamshells) must be BPI certified. To receive BPI certification the product cannot contain any added PFAS chemicals (often used as a grease or oil barrier). PFAS chemicals are persistent in the environment and are very costly to manage at disposal facilities (including compost sites). Accepted Not Accepted • Napkins, and food-soiled paper towels • Paper that can be recycled • Paper egg cartons (remove sticker labels) • Products labeled "biodegradable" or PLA that are • BPI certified products* not BPI certified • Cups, plates and bowls • Cartons (milk cartons, juice boxes, soup, • Containers broth and wine cartons) • Parchment and wax paper • Paper products (plates, boats, cups bowls) • CMA approved products* without BPI certification • Paper grocery or lunch bags (recycle if not soiled) • Paper products used with chemical based • Tissue paper cleaners • Paper towel and toilet paper rolls • Refrigerated and frozen food boxes • Pizza boxes from delivery** • Fast food wrappers (fry bags and burger/sandwich wrappers [unless BPI certified]) • Butcher paper, parchment paper, wax paper, muffin cups (unless BPI certified) • Microwave popcorn bags *Must have BPI or CMA • Ice cream containers logo on product. • Asian take-out food pails (unless BPI certified) • Paper coated with foil • Wax/produce cardboard boxes **food-soiled, plain • Wrapping paper and tissue paper (gift wrap/ cardboard boxes only. packing) • Shredded paper • Receipts • Pull tabs from restaurants/ bars Page 2 of 3 Material Category: Other Compostable/Household Food Related Items • Other compostable food related items • Other household food related items Notes: 1. Recyclable items should be recycled. 2. Public messaging should be tied to products that are food-related. Accepted Not Accepted • Coffee grounds and filters • Recyclable materials (glass, plastic, paper, • Tea leaves metal) • Tea bags (no synthetic filter or metal) • Cleaning and personal care wipes • Houseplant trimmings • Pet waste or litter or animal bedding • Hair and nail clippings (undyed and not painted) • Diapers • Wooden items such as wood chopsticks, • Menstrual and incontinence products popsicle sticks and toothpicks • Non-BPI certified plastic (bags, containers) • Nutritional or protein supplement powders (no • Products labeled as "biodegradable" or PLA that vitamins, minerals, etc. in pill form) are not BPI certified • Cotton balls and paper swabs • Dryer lint and dryer sheets • BPI certified or CMA approved compostable • Clothing or textiles products*: • Dental floss 0 Cups, plates and bowls • Medicines 0 Utensils and straws • Cigarettes 0 Bags • Fireplace or BBQ ashes 0 Containers • Charcoal or ashes 0 Bamboo products • Lumber and sawdust 0 Bagasse products • Rocks, soil and dirt 0 Single-use coffee pods • Latex items (balloons or gloves) • Rubber and rubber bands • Wax (wax paper, [unless BPI certified], candle wax, car wax) *Must have BPI or CMA • Tape of any kind logo on product. • Vacuum cleaner bags and contents • Floor sweepings • Yard waste material (belongs in separate stream) • Pallets or crates Page 3 of 3 Page 1 of 4 4141 Douglas Drive North • Crystal, Minnesota 55422-1696 Tel: (763) 531-1000 • Fax: (763) 531-1188 • www.crystalmn.gov Posted: May 31, 2024 City Council Meeting Agenda Tuesday, June 4, 2024 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, 2024, as Flag Day in the City of Crystal. 3.2 The Mayor will proclaim June 19, 2024, as Juneteenth Freedom Day in the City of Crystal. 4. Appearances 4.1 Deputy Police Chief Brian Hubbard will recognize the Crystal/New Hope/Robbinsdale Police Explorers.* 5. Consent Agenda The Council will consider the following items, which are routine and non-controversial in nature, in a single motion: 5.1 Approval of the minutes from the following meetings: a. The City Council work session on May 21, 2024. b. The City Council meeting on May 21, 2024. 5.2 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. 5.3 Approval of the following items for 2024 Crystal Frolics: a. Temporary closure of portions of 46th Avenue N. and 47th Avenue N. from July 25 - 28, 2024, for city and volunteer staff vehicle parking, shuttle bus service, fireworks displays and the water ball competition hosted by West Metro Fire-Rescue District Firefighters Relief Association. b. A permit for display of outdoor fireworks at Welcome Park on July 26 and 27, 2024, submitted by Hollywood Pyrotechnics, Inc. 5.4 Adoption of a resolution reporting on state performance measures. Page 2 of 4 6. 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. 7. Public Hearing 7.1 The Mayor will open a public hearing to receive comments, and the Council will consider approval of new on-sale wine, beer, and Sunday liquor licenses for Golden Star Café, LLC dba Lucky Pearl Café located at 5600 56th Ave. N. The applicant has submitted new on-sale wine, beer, and Sunday sales liquor license applications on behalf of Golden Star Café, LLC dba Lucky Pearl Café located at 5600 56th Ave. N. for the period of July 1, 2024 – June 30, 2025. The property is zoned Commercial (C), and liquor stores are a permitted use in that district. Staff has reviewed the liquor license application materials, and a background check was completed by the police department. Staff finds no reason to prohibit the issuance of the license and recommends approval. 8. Regular Agenda 8.1 The Council will consider approval of disbursements of more than $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. 8.2 The Council will receive the 2023 annual financial report from Bergan KDV.* Representatives of Bergan KDV will present the 2023 annual financial report. After hearing the presentation, the Council should accept the 2023 annual financial report. 8.3 The Council will receive a budget preview for 2025. This presentation will be the kick-off of the 2025-2026 Budget. No action is required, but after the presentation, the council is invited to provide feedback and direction to staff to aid in preparing the 2025-2026 Budget. 8.4 The Council will consider a resolution approving the purchase and installation of pool amenities for the Crystal Cove Aquatic Center project. Following the approval of the major construction contracts for the Crystal Cove Aquatics Center project at the April 16 meeting, staff has been working to secure proposals and quotes for the other aspects of the project including several of the various planned amenities and demolition of the old slides. Several slide improvements are available for purchase using the cooperative purchasing agreement that the city approved at the May 21 Page 3 of 4 meeting. Also included is the demolition of the old slide, which requires replacement. Other remaining amenities and additional concrete work will be brought to the council for future consideration. So far, the project is still tracking under budget. Recommend approval of the resolution approving agreements with Webber Recreational Design, Inc. for the proposed amenities and demolition as proposed. 8.5 The Council will consider the second reading of an ordinance amending the Town Center – Planned Development at 5240 West Broadway to add a sport court to the site, and a resolution authorizing summary publication of the ordinance. The developer experienced some unexpected cost savings and decided to use those funds to add upgrades to this 58-unit apartment project which is now expected to open at the end of July. Among the upgrades, is an on-site sport court which requires an amendment to the previously approved Planned Development. On May 13, the Planning Commission held a public hearing (no one testified) and voted 7-0 to recommend approval. On May 21, the Council approved the first reading of the Planned Development amendment ordinance. Council approval of the second reading and adoption of the ordinance is requested, followed by approval of a resolution authorizing summary publication. 8.6 The Council will consider the second reading of an ordinance amending the Crystal Unified Development Code regarding cannabis businesses, liquor sales, and tobacco sales, and a resolution authorizing summary publication of the ordinance. In 2023, the Council adopted an edible cannabinoids licensing ordinance that included buffer distance requirements from schools, parks, and residential treatment facilities. Based on recent Council discussion, the proposed ordinance moves the buffers into the zoning code (UDC), makes all buffer distances consistent, applies them to off-sale alcohol and tobacco in addition to edible cannabinoid sales, and sets an effective date of Jan. 1, 2025, after which existing licensed businesses located within the buffers may continue as legal nonconforming uses. On May 13, the Planning Commission held a public hearing (no one testified) and voted 6-1 to recommend approval. On May 21, the Council approved the first reading of the UDC amendment ordinance. Council approval of the second reading and adoption of the ordinance is requested, followed by approval of a resolution authorizing summary publication. 8.7 The Council will consider the second reading of an ordinance amending the ordinance requiring a license and imposing regulations on the retail sale of edible cannabinoid products. As a companion to the previous item, this ordinance would remove the current buffer distance requirements from the edible cannabinoids licensing ordinance. On May 21, the Council approved the first reading. Council approval of the second reading and adoption of the ordinance is requested. 8.8 The Council will consider authorizing a letter to Hennepin County and Metro Transit regarding unresolved issues related to the Blue Line Extension light rail transit project. As discussed at the May 21 work session, it has been more than 14 months since the City Council formally raised several municipal consent issues regarding the project. Significant Page 4 of 4 among those issues was the West Broadway jurisdictional transfer. City and county staff met about this issue over a year ago, but since then there has been no substantive response or engagement by the county. A staff meeting is scheduled with the county on Tuesday, June 4, and city staff will provide an update to the council at the June 4 council meeting. Staff requests Council consider the draft letter for approval pending the outcome of the June 4 meeting with the county. 9. Announcements a. A ribbon-cutting ceremony for the new Welcome Park play area and fitness circuit will be held on Wednesday, June 5 at 6:30 p.m. b. The Crystal Airport Open House is Sunday, June 16 from 8 a.m. – 3 p.m. c. The next City Council meeting is Tuesday, June 18 at 7 p.m. in the Council Chambers at City Hall and via Zoom. d. City offices will be closed on Wednesday, June 19 in observance of the Juneteenth holiday. e. City Hall offices will be closed on Thursday, July 4, and Friday, July 5 in observance of the Independence Day holiday. *July 5 is not a city-designated holiday. f. City Council meetings and work sessions are open to the public. Current and previous meetings are available for viewing and listening at www.crystalmn.gov. 10. Adjournment Have a great weekend. See you at Tuesday’s meeting. 4141 Douglas Drive North • Crystal, Minnesota 55422-1696 Tel: (763) 531-1000 • Fax: (763) 531-1188 • PROCLAMATION RECOGNIZING FLAG DAY 2024 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, 2024, 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 4th day of June, 2024. Jim Adams, Mayor 3.1 4141 Douglas Drive North • Crystal, Minnesota 55422-1696 Tel: (763) 531-1000 • Fax: (763) 531-1188 • PROCLAMATION RECOGNIZING JUNETEENTH 2024 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; and 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, 2024, 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 4th day of June, 2024. Jim Adams, Mayor 3.2 Crystal City Council work session minutes May 21, 2024 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 6:30 p.m. on May 21, 2024, 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, West Metro Fire-Rescue District Chief S. Larson, Assistant Fire Chief J. Kunde, Police Chief S. Revering, Deputy Police Chief B. Hubbard, Recreation Director Elholm, Public Works Director/City Engineer J. Struve, Community Development Director J. Sutter and City Clerk C. Serres. Assistant City Manager K. Therres was present remotely via Zoom. II.Agenda The Council and staff discussed the following agenda item: 1.West Metro Fire-Rescue District quarterly update and 2025 proposed budget. At 7 p.m., Mayor Adams continued the work session to resume immediately after the Council meeting. Mayor Adams reconvened the work session at 8:47 p.m. to continue discussion of the West Metro Fire-Rescue District quarterly update and 2025 proposed budget, and the following agenda items: 2.Blue Line Extension - outstanding issues from March 2023 letter. 3.City Council liaison reports. 4.City manager monthly check-in. 5.Constituent issues. 6.New business. 7.Announcements. III.Adjournment The work session adjourned at 9:46 p.m. Jim Adams, Mayor ATTEST: Christina Serres, City Clerk 5.1(a) Crystal City Council meeting minutes May 21, 2024 Page 1 of 5 1.Call to Order Pursuant to due call and notice given in the manner prescribed by Section 3.01 of the City Charter, the meeting of the Crystal City Council was held on May 21, 2024, at 7:02 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, Recreation Director J. Elholm, West Metro Fire-Rescue District Chief S. Larson, Police Chief S. Revering, Deputy Police Chief B. Hubbard, Public Works Director/City Engineer Jesse Struve, Community Development Director J. Sutter and City Clerk C. Serres. Assistant City Manager K. Therres was present remotely 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 Kiser and seconded by Council Member Kamish 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 7, 2024. b.The City Council work session on May 7, 2024. c.The City Council work session on May 9, 2024. 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 Resolution No. 2024-53, rescinding civil penalties for violation of liquor license regulations by Family Café and Diner, LLC d/b/a Family Café and Diner located at 6236 56th Ave. N. 3.4 Authorization to participate in the Cooperative Purchasing Connection Service Cooperative. 3.5 Adoption of Resolution No. 2024-54, recognizing June as Pride Month. Moved by Council Member Kiser and seconded by Council Member Eidbo to approve the consent agenda. Motion carried. 5.1(b) Crystal City Council meeting minutes May 21, 2024 Page 2 of 5 4. Open Forum The following persons addressed the Council regarding the Blue Line Extension: • Kristal Porter, 2520 23rd Ave. N., Minneapolis; Tom Slupske, 9700 69th Ave. N., Brooklyn Park; Tim Polson, 6824 39th Ave. N., Crystal; Karen Sathre, 5108 Bernard Ave. N., Crystal; Eric Hillman, 3803 Orchard Ave. N., Robbinsdale and Greg Sawyer, Robbinsdale. Additionally, Burt Orred, 6700 60th Ave. N., addressed the Council regarding Becker Park. 5. Regular Agenda 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 Kamish 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 a resolution approving a grant agreement with the Minnesota Department of Employment and Economic Development for the Crystal Cove Aquatic Center. Recreation Director John Elholm addressed the Council. Moved by Council Member Budziszewski and seconded by Council Member Kamish to adopt the following resolution: RESOLUTION NO. 2024 – 55 RESOLUTION APPROVING A GRANT AGREEMENT WITH THE MINNESOTA DEPARTMENT OF EMPLOYMENT AND ECONOMIC DEVELOPMENT AND AUTHORIZING EXECUTION Voting aye: Eidbo, Kamish, Kiser, Onesirosan, Adams, Budziszewski and Cummings. Motion carried, resolution declared adopted. 5.3 The Council considered a resolution approving the purchase of an easement machine. Public Works Director/City Engineer Jesse Struve addressed the Council. Moved by Council Member Budziszewski and seconded by Council Member Kiser to adopt the following resolution: RESOLUTION NO. 2024 – 56 APPROVING THE PURCHASE OF AN EASEMENT MACHINE Voting aye: Eidbo, Kamish, Kiser, Onesirosan, Adams, Budziszewski and Cummings. Motion carried, resolution declared adopted. 5.1(b) Crystal City Council meeting minutes May 21, 2024 Page 3 of 5 5.4 The Council considered a resolution approving the purchase of a replacement one-ton truck. Public Works Director/City Engineer Jesse Struve addressed the Council. Moved by Council Member Onesirosan and seconded by Council Member Kamish to adopt the following resolution: RESOLUTION NO. 2024 – 57 APPROVING THE PURCHASE OF A REPLACEMENT 1-TON TRUCK Voting aye: Eidbo, Kamish, Kiser, Onesirosan, Adams, Budziszewski and Cummings. Motion carried, resolution declared adopted. 5.5 The Council considered a resolution approving plans and specifications and authorizing advertisement for bids for the 2024 Mill and Overlay Project. Public Works Director/City Engineer Jesse Struve addressed the Council. Moved by Council Member Budziszewski and seconded by Council Member Cummings to adopt the following resolution: RESOLUTION NO. 2024 – 58 APPROVING PLANS AND SPECIFICATIONS AND AUTHORIZING ADVERTISEMENT FOR BIDS 2024 MILL AND OVERLAY Voting aye: Eidbo, Kamish, Kiser, Onesirosan, Adams, Budziszewski and Cummings. Motion carried, resolution declared adopted. 5.6 The Council considered the first reading of an ordinance amending the Town Center – Planned Development at 5240 West Broadway to add a sport court to the site. Community Development Director John Sutter addressed the Council. Sand Companies representative Megan Carr also addressed the Council. Moved by Council Member Budziszewski and seconded by Council Member Eidbo to adopt the following ordinance: ORDINANCE NO. 2024 – 03 AN ORDINANCE AMENDING THE TOWN CENTER – PLANNED DEVELOPMENT (TC-PD) AT 5240 WEST BROADWAY AVENUE And further, that the second and final reading will be held on June 4, 2024. Voting aye: Eidbo, Kamish, Kiser, Onesirosan, Adams, Budziszewski and Cummings. Motion carried. 5.7 The Council considered the first reading of an ordinance amending the Crystal Unified Development Code regarding cannabis businesses, liquor sales and tobacco sales. 5.1(b) Crystal City Council meeting minutes May 21, 2024 Page 4 of 5 Community Development Director John Sutter addressed the Council. Moved by Council Member Eidbo and seconded by Council Member Budziszewski to adopt the following ordinance: ORDINANCE NO. 2024 – 04 AN ORDINANCE AMENDING THE CRYSTAL UNIFIED DEVELOPMENT CODE REGARDING CANNABIS BUSINESSES, LIQUOR SALES, AND TOBACCO SALES And further, that the second and final reading will be held on June 4, 2024. Voting aye: Eidbo, Kamish, Kiser, Onesirosan, Adams, Budziszewski and Cummings. Motion carried. 5.8 The Council considered the first reading of an ordinance amending the ordinance requiring a license and imposing regulations on the retail sale of edible cannabinoid products. Community Development Director John Sutter addressed the Council. Moved by Council Member Eidbo and seconded by Council Member Budziszewski to adopt the following ordinance: ORDINANCE NO. 2024 – 05 AN ORDINANCE AMENDING THE ORDINANCE REQUIRING A LICENSE AND IMPOSING REGULATIONS ON THE RETAIL SALE OF EDIBLE CANNABINOID PRODUCTS And further, that the second and final reading will be held on June 4, 2024. Voting aye: Eidbo, Kamish, Kiser, Onesirosan, Adams, Budziszewski and Cummings. Motion carried. 5.9 The Council considered a resolution approving a contract with FinePoint Tech for design, bidding, and construction oversight services for Council Chambers upgrades. City Manager Adam R. Bell addressed the Council. Moved by Council Member Kamish and seconded by Council Member Budziszewski to adopt the following resolution: RESOLUTION NO. 2024 – 59 APPROVING THE CONTRACT WITH FINEPOINT TECH FOR DESIGN, BIDDING, AND CONSTRUCTION OVERSIGHT SERVICES FOR COUNCIL CHAMBERS UPGRADES AS PLANNED FOR IN THE CABLE EQUIPMENT FUND Voting aye: Eidbo, Kamish, Kiser, Onesirosan, Adams, Budziszewski and Cummings. Motion carried, resolution declared adopted. 5.1(b) Crystal City Council meeting minutes May 21, 2024 Page 5 of 5 6. Announcements The Council and staff made announcements about upcoming events. 7. Adjournment Moved by Council Member Kiser and seconded by Council Member Kamish to adjourn the meeting. Motion carried. The meeting adjourned at 8:42 p.m. ___________________________________ Jim Adams, Mayor ATTEST: _____________________________________ Christina Serres, City Clerk 5.1(b) Page 1 of 2 City of Crystal Council Meeting June 4, 2024 Applications for City License Fireworks – Outdoor TNT Fireworks at Cub Foods, 5301 36th Ave. N., Crystal, MN 55422 (June 20 – July 5) Liquor – Off-Sale RPSM, LLC dba Adair Liquor, 6001 42nd Ave. N., Crystal, MN 55422 Ashley’s Liquor, Inc. dba Ashley’s Liquor, 4920 West Broadway, Crystal, MN 55429 Zahid Beverage Group, LLC dba Crystal Liquor Warehouse, 6200 56th Ave. N., Crystal, MN 55429 SuperValu, Inc. dba Cub Wine & Spirits, 5201 36th Ave. N., Crystal, MN 55422 Missy Hope, Inc. dba Hope Liquor, 111 Willow Bend, Crystal, MN 55428 Klever Liquor, Inc. dba Klever Liquor, 5120 56th Ave. N., Crystal, MN 55429 An Thi Nguyen dba Liquor Barrel, 2728 Douglas Dr. N., Crystal, MN 55422 VangCheng, LLC dba Liquor Barrel Wine & Spirits, 5628 West Broadway, Crystal, MN 55428 Mejron Investments Ltd. Corp., dba The Wine Thief & Ale Jail, 3600 Douglas Dr. N., Crystal, MN 55422 Liquor – Off-Sale 3.2% Malt Liquor SuperValu, Inc. dba Cub Foods, 5301 36th Ave. N., Crystal, MN 55422 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 Liquor – On-Sale Stino, Inc. dba Big Louie’s Bar & Grill, 5216 West Broadway, Crystal, MN 55429 Blazin Wings, Inc. dba Buffalo Wild Wings #69, 5590 West Broadway, Crystal, MN 55428 (Conditional upon verification of insurance) 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 Tequilatown, LLC dba Tequilatown Authentic Mexican Cuisine & Bar, 99 Willow Bend, Crystal, MN 55428 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 Cajun 4 Seafood, LLC dba Cajun Kitchen, 5440 West Broadway, Crystal, MN 55428 Family Café and Diner, LLC dba Family Café and Diner, 6236 56th Ave. N., Crystal, MN 55429 Liquor – On-Sale Sunday Stino, Inc. dba Big Louie’s Bar & Grill, 5216 West Broadway, Crystal, MN 55429 Blazin Wings, Inc. dba Buffalo Wild Wings #69, 5590 West Broadway, Crystal, MN 55428 (Conditional upon verification of insurance) Cajun 4 Seafood, LLC dba Cajun Kitchen, 5440 West Broadway, Crystal, MN 55428 Family Café and Diner, LLC dba Family Café and Diner, 6236 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 Tequilatown, LLC dba Tequilatown Authentic Mexican Cuisine & Bar, 99 Willow Bend, Crystal, MN 55428 Charles R. Knaeble VFW Post #494, 5222 56th Ave. N., Crystal, MN 55429 5.2 Page 2 of 2 Rental (New) 3806 Hampshire Ave. N. – Elissa Merritt (Conditional) 5242 Louisiana Ave. N. – Ingris Orozco (Conditional) 7206 58th Ave. N. – Andrew Faschingbauer Rental (Renewal) 4559-4563 Douglas Dr. N. – DNJ Enterprises LLC (Conditional) 4219 Georgia Ave. N. – Invitation Homes (Conditional) 3809 Hampshire Ave. N. – HPA II Borrower 2021-1 LLC 5001 Jersey Ave. N. – Invitation Homes (Conditional) 6048 Jersey Ave. N. – Invitation Homes 3970 Kentucky Ave. N. – Brian Bona 3524 Kyle Ave. N. – Fowzia Omar (Conditional) 3415 Major Ave. N. – Invitation Homes (Conditional) 3246 Nevada Ave. N. – Pavoua Lee (Conditional) 2971 Sumter Ave. N. – Steve Johnson 5232 Welcome Ave. N. – Crystal Clear Investments (Conditional) 5716 Wilshire Blvd. – Mike Viaene and Jon Kotrba 4843 Yates Ave. N. – Zachary Aoga 5825 46th Ave. N. – Luis Duchi (Conditional) 6825 46th Ave. N. – Stella Iwuchukwa 5915 47th Ave. N. – HPA II Borrower 2019-1 LLC Tree Trimmer Ivan’s Tree Service LLC, 10651 Grey Cloud Trail S., Cottage Grove, MN 55016 Jays Tree Care & Firewood 8253 Imperial Road, Royalton, MN 56373 5.2 May 29, 2024 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 25 - 28. 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. The Crystal Frolics will be using this location also for shuttle bus drop off for Handicap and regular drop off. We plan to have fireworks on both Friday and Saturday nights (July 26 & 27) 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 will also be using the section of road at Xenia Ave. N and 46th Ave. N on Saturday afternoon for the Water Ball competition hosted by the WMFRA. The street area will only be closed temporary in front of the New Playground area at Welcome Park on Saturday for Water Ball. 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 5.3(a) 5.3(b) 5.3(b) Memorandum DATE: TO: FROM: May 30, 2024 Mayor and City Council Adam R. Bell, City Manager SUBJECT: State Performance Measurement Program ____________________________________________________________________ BACKGROUND: In 2010-2011, 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 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. To aid in measuring performance, questions included in the survey are: ● Overall appearance of the city ● Overall feeling of safety in the city ● Overall quality of fire protection services in the city ● Overall condition of city streets ● Overall quality of snowplowing on city streets ● Dependability and overall quality of city sanitary sewer service ● Dependability and overall quality city water ● Overall quality of city recreation programs and facilities ● Overall quality of services provided by the city Attached are Resolution No. 2011-56 adopting the program and the proposed resolution for the city’s 2024 participation. RECOMMENDATION: Recommend approval of the resolution regarding the 2024 reporting on the state performance measures. Attach: Res. 2011-56, Resolution Declaring Adoption of State Performance Measures Res. 2024-__, Resolution Reporting on State Performance Measures 5.4 5.4 CITY OF CRYSTAL RESOLUTION NO. 2024 - ___ 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 2024; 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 4th day of June 2024. __________________________ Jim Adams, Mayor ATTEST: ____________________________ Christina Serres City Clerk 5.4 CITY COUNCIL STAFF REPORT Public hearing: June 4, 2024 City Council meeting Consideration of new on-sale wine, beer and Sunday liquor licenses for Golden Star Café, LLC dba Lucky Pearl Café DATE: May 30, 2024 FROM: City Clerk Chrissy Serres TO: Mayor and City Council City Manager Adam R. Bell CC: Police Chief Stephanie Revering RE: Consideration of new on-sale wine, beer and Sunday liquor licenses for Golden Star Café dba Lucky Pearl Café located at 5600 56th Ave. N., Suite E Background Mr. Leedao Leexaitou, owner of Lucky Pearl Café, has submitted applications for new on-sale wine, beer and Sunday liquor licenses for his restaurant located at 5600 56th Ave. N., Suite E, for the licensing period beginning July 1, 2024 – June 30, 2025. Staff has reviewed the liquor license application materials. A background check was completed by the police department. The property is zoned Commercial (C) and restaurants with on-sale liquor are a permitted use in this district. The restaurant has seating for 34 guests and the hours are as follows: Sunday, Monday, Wednesday, Thursday: 11 a.m. – 8 p.m. (The business is closed on Tuesdays.) Friday and Saturday: 11 a.m. – 9 p.m. A public hearing notice was published in the Sun Post on May 23 (Attachment A), as well as posted on Nextdoor. Mr. Leexaitou will be attending the June 4 meeting. Requested City Council action Staff recommends approval of the new on-sale wine, beer and Sunday liquor licenses for Golden Star Café dba Lucky Pearl Café located at 5600 56th Ave. N., Suite E. 7.1 CITY OF CRYSTAL NOTICE OF PUBLIC HEARING TO CONSIDER NEW ON-SALE WINE, BEER AND SUNDAY LIQUOR LICENSES AT 5600 56TH AVE N Notice is hereby given that the Crystal City Council will hold a public hearing on June 4, 2024 at 7 p.m. in the Council Chambers located at 4141 Douglas Drive N., to consider new on-sale wine, beer and Sunday liquor licenses at 5600 56th Ave. N., Suite E, submitted by Golden Star Café LLC, dba Lucky Pearl Café. 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 7.1 DATE: May 29, 2024 TO: Adam R. Bell, City Manager City of Crystal City Council FROM: Jean McGann, Contracted Finance Director RE: Expenditures over $25,000 Payee Amount Metropolitan Council Wastewater Services for June $143,220.09 USAquatics State Pool Drawing Review & Pool Design #3 $41,230.00 Waste Management (HRG) New Hope, Brooklyn Center, & Crystal April Recycling $77,556.14 Core & Main LP Radio Upgrade Project $77,760.00 Bergankdv LTD 2023 Audit Progress Billing $30,000.00 MN PERA Employee & City Required Contributions for 5/24/24 Pay Date $73,861.10 IRS - EFTPS Federal & FICA Withholding Taxes for 5/10/24 Pay Date $69,952.29 $513,579.62 Description 8.1 City of Crystal Hennepin County, Minnesota Reports on Compliance with Government Auditing Standards and Legal Compliance December 31, 2023 8.2 City of Crystal Table of Contents 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 1 Schedule of Findings and Responses 3 Minnesota Legal Compliance 4 8.2 1 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, 2023, and the related notes to financial statements, which collectively comprise the City's basic financial statements, and have issued our report thereon dated May 23, 2024. 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 2023-001. 8.2 2 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 23, 2024 8.2 3 City of Crystal Schedule of Findings and Questioned Costs FINANCIAL STATEMENT FINDINGS Audit Finding 2023-001 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. 8.2 4 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, 2023, and the related notes to financial statements, which collectively comprise the City's basic financial statements, and have issued our report thereon dated May 23, 2024. 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 23, 2024 8.2 ANNUAL COMPREHENSIVE FINANCIAL REPORT OF THE CITY OF CRYSTAL, MINNESOTA For the Year Ended December 31, 2023 Prepared by City of Crystal Finance Department Abdo Financial Solutions, Finance Director 8.2 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 94 Schedule of Employer Contributions – OPEB 96 Schedule of City's Proportionate Share of Net Pension Liability General Employees Retirement Fund 98 Schedule of City's Proportionate Share of Net Pension Liability Public Employees Police and Fire Retirement Fund 98 Schedule of City Contributions – General Employees Retirement Fund 99 Schedule of City Contributions – Public Employees Police and Fire Retirement Fund 99 Notes to Required Supplementary Information 100 Supplementary Information Nonmajor Governmental Funds Combining and Individual Fund Financial Statements and Schedules 109 Combining Balance Sheet – Nonmajor Governmental Funds 110 Combining Statement of Revenues, Expenditures, and Changes in Fund Balances Nonmajor Governmental Funds 112 8.2 City of Crystal Table of Contents Page Supplementary Information (Continued) Combining and Individual Fund Financial Statements and Schedules (Continued) Schedule of Revenues, Expenditures, and Changes in Fund Balance Budget and Actual – TIF Districts - Special Revenue 114 Schedule of Revenues, Expenditures, and Changes in Fund Balance Budget and Actual – EDA - Special Revenue 115 Schedule of Revenues, Expenditures, and Changes in Fund Balance Budget and Actual – Street Reconstruction - Capital Projects 116 Schedule of Revenues, Expenditures, and Changes in Fund Balance Budget and Actual – Park Improvement - Capital Projects 117 Schedule of Revenues, Expenditures, and Changes in Fund Balance Budget and Actual – Police Equipment Revolving - Capital Projects 118 Combining Statement of Net Position - Internal Service Funds 119 Combining Statement of Revenues, Expenditures, and Changes in Net Position Internal Service Funds 120 Combining Statement of Cash Flows – Internal Service Funds 121 Statistical Section (Unaudited) Table Page Net Position by Component 1 126 Change in Net Position 2 128 Fund Balances of Governmental Funds 3 132 Changes in Fund Balances of Governmental Funds 4 134 Taxable and Estimated Market Values of Taxable Property 5 136 Property Tax Rates – Direct and Overlapping Governments 6 137 Principal Property Taxpayers 7 138 Property Tax Levies and Collations 8 139 Legal Debt Margin Information 9 140 Ratios of Outstanding Debt by Type 10 142 Ratios of General Bonded Debt Outstanding 11 143 Direct and Overlapping Governmental Activities Debt 12 144 Demographic and Economic Statistics 13 145 Principal Employers 14 146 Full-Time City Government Employees by Function 15 147 Operating Indicators by Function 16 148 Capital Asset Statistics by Function 17 150 8.2 1 City of Crystal Elected Officials and Administration December 31, 2023 Elected Officials Position Term Expires Jim Adams Mayor December 31, 2024 Taji Onesirosan Council Member December 31, 2024 Section 1 - Wards 1 and 2) Therese Kiser Council Member (Ward 1)December 31, 2026 Traci Kamish Council Member (Ward 2)December 31, 2026 Forest Eidbo Council Member December 31, 2026 Section II - Wards 3 and 4) John Budziszewski Council Member (Ward 3)December 31, 2024 David Cummings Council Member (Ward 4)December 31, 2024 Administration Position Adam Bell City Manager Appointed Abdo Financial Solutions City Finance Director Appointed Christina Serres City Clerk Appointed Kennedy and Graven, Chartered City Attorney Appointed 8.2 2 8.2 3 City of Crystal Organizational Chart December 31, 2023 8.2 4 8.2 5 4141 Douglas Drive North • Crystal, Minnesota 55422-1696 Tel: (763) 531-1000 • Fax: (763) 531-1188 • www.crystalmn.gov May 23, 2024 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, 2023, 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, 2023, 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, 2023, 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. 8.2 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. 8.2 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 5.95% from 2022 to 2023. 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 2023, building permits were issued for a 58 unit apartment building (permit value of $11,178,000) and a 4-unit residential building (permit value of 1,035,000). 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 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. 8.2 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 86% of the General Fund's revenue in 2023. 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, 2022. 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 8.2 9 City of Crystal Certificate of Achievement for Excellence in Financial Reporting 8.2 10 8.2 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, 2023, and the related notes to the financial statements, which collectively comprise the City of Crystal'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, 2023, 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. 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. 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 twelve months beyond the financial statement date, including any currently known information that may raise substantial doubt shortly thereafter. 8.2 12 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 $1,179,598 and 5,719, 069, 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. 8.2 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, 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. 8.2 14 Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated May 23, 2024, 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 23, 2024 8.2 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, 2023. 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 $129, 438,641. Of this amount, $26,806, 277 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 $3,798, 669. Governmental activities experienced a $544,679 increase in net position from operations while business-type activities experienced a $3,253, 990 increase in net position from operations. At the end of the fiscal year, total fund balance for the General Fund was $6,130, 015, or 32.85% 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 1,411,913 during the fiscal year. The City's Total OPEB Liability decreased by $202,696. 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). 8.2 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. 8.2 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. 8.2 City of Crystal Management's Discussion and Analysis 18 GOVERNMENT-WIDE FINANCIAL ANALYSIS Net Position The City has 71.31% 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 7.98% of the City's net position represents resources that are subject to external restrictions on how they may be used. The remaining balance of 20.71% 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: 2023 2022 2023 2022 2023 2022 Current and Other Assets 34,497,172$ 36,131,923$ 10,044,041$ 8,976,685$ 44,541,213$ 45,108,608$ Equity interest in joint venture 1,179,598 1,277,625 5,719,069 5,330,686 6,898,667 6,608,311 Capital assets 74,473,563 74,277,002 26,963,668 25,485,834 101,437,231 99,762,836 Total assets 110,150,333 111,686,550 42,726,778$ 39,793,205 152,877,111$ 151, 479,755 Deferred Outflows of Resources 8,281,333 10,060,271 147,682 248,497 8,429,015 10,308,768 Long-Term liabilities outstanding 18,784,366 29,198,925 613,377 1,014,260 19,397,743 30,213,185 Other liabilities 2,099,269 2,848,194 689,974 854,653 2,789,243 3,702,847 Total liabilities 20,883,635 32,047,119 1,303,351 1,868,913 22,186,986 33,916,032 Deferred Inflows of Resources 9,438,742 2,135,092 241,757 97,427 9,680,499 2,232,519 Net Position Net investment in capital assets 65,341,301 62,949,446 26,963,668 25,321,967 92,304,969 88,271,413 Restricted 10,327,395 10,999,656 - - 10,327,395 10,999,656 Unrestricted 12,440,593 13,615,508 14,365,684 12,753,395 26,806,277 26,368,903 Total net position 88,109,289$ 87,564, 610$ 41,329,352 38,075,362$ 129,438,641$ 125, 639,972$ Changes in Net Position Governmental Activities Business-Type Activities Total 8.2 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 2023 and 2022 follows: 2023 2022 2023 2022 2023 2022 Revenues Program revenues Charges for services 2,294,089$ 2,199, 421$ 11,192, 378$ 10,327,899$ 13,486,467$ 12,527, 320$ Operating grants and contributions 1,946,055 890, 737 803, 278 563,599 2,749,333 1,454, 336 Capital grants and contributions 2,578,089 8,553, 139 5,761 7,801 2,583,850 8,560, 940 General revenues Property taxes 15,387,668 14,175, 783 - - 15,387,668 14,175, 783 Intergovernmental 1,130,740 1,220, 414 - - 1,130,740 1,220, 414 Other 1,348,082 (358, 835) 246, 444 ( 135,363) 1,594,526 (494, 198) Total revenues 24,684,723 26,680, 659 12,247, 861 10,763,936 36,932,584 37,444, 595 Expenses General government 2,692,918 2,304, 721 - - 2,692,918 2,304, 721 Public safety 10,005,401 10,325, 270 - - 10,005,401 10,325, 270 Public works 4,965,665 4,650, 024 - - 4,965,665 4,650, 024 Parks and recreation 5,289,456 4,615, 108 - - 5,289,456 4,615, 108 Community development 1,628,317 1,481, 719 - - 1,628,317 1,481, 719 Interest on long-term debt 229,583 255, 755 - - 229,583 255, 755 Water - - 3,989, 117 3,817,096 3,989,117 3,817, 096 Sanitary sewer - - 2,728, 239 2,668,640 2,728,239 2,668, 640 Storm drainage - - 930, 995 937,050 930,995 937, 050 Street lights - - 208, 389 205,757 208,389 205, 757 Recycling - - 465, 835 380,318 465,835 380, 318 Total expenses 24,811,340 23,632, 597 8,322, 575 8,008,861 33,133,915 31,641, 458 Change in Net Position Before Transfers (126,617) 3,048, 062 3,925, 286 2,755,075 3,798,669 5,803, 137 Transfers 671,296 505, 214 (671, 296) ( 505,214) - - Change in Net Position 544,679 3,553, 276 3,253, 990 2,249,861 3,798,669 5,803, 137 Net position - beginning of year 87,564,610 84,011, 334 38,075, 362 35,825,501 125,639,972 119,836, 835 Net position - end of year 88,109,289$ 87,564, 610$ 41,329, 352$ 38,075,362$ 129,438,641$ 125,639, 972$ Governmental Activities Business-Type Activities Total Changes in Net Position 8.2 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 $544,679, or 0.62%, accounting for 14.34% 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 $3,253,990, or 8.55%, accounting for 85.66% 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 7% for water and 7% for Sewer. 8.2 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 2023 Expenses and Program Revenues - Governmental Activities Expenses Revenues 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 8.2 City of Crystal Management's Discussion and Analysis 22 REVENUES BY SOURCE 10% Capital grants and contributions9% Charges for services 8% Operating grants and contributions 62% Property taxes 5% Grants and contributions not restricted to specific programs 5% Unrestricted investment earnings 1% Other general revenue 2023 Revenues by Source -Governmental Activities 32% Capital grants and contributions 8% Charges for services 3% Operating grants and contributions 53% Property taxes 5% Grants and contributions not restricted to specific programs 2% Unrestricted investment earnings 1% Other general revenue 2022 Revenues by Source -Governmental Activities 8.2 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 7,000,000 Water Sanitary Sewer Storm drainage Street lights Recycling 2023 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 2022 Expenses and Program Revenues -Business Type Activities Expenses Revenues 8.2 City of Crystal Management's Discussion and Analysis 24 REVENUES BY SOURCE Charges for services 91% Operating grants and contributions 7% Unrestricted investment earnings 2% 2023 Revenues by Source -Business Type Activities Charges for services 94% Operating grants and contributions 5% Unrestricted investment earnings 1% 2022 Revenues by Source -Business Type Activities 8.2 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 $26,445, 792, an increase of $1,539, 436 compared to the prior year. Approximately 19.51% of the total amount ($5,160,502) constitutes unassigned fund balance, which is available for spending at the government's discretion. The remainder of fund balance has been classified as nonspendable ($45,109), restricted ($5,770, 824), committed ($15,366,672), and assigned 102, 685). The General Fund is the main operating fund of the City. At the end of the fiscal year total fund balance was $6,130,015. Unassigned fund balance was $5,160,502 of this amount, $924,404 was committed for amounts incurred as an expense but not yet paid, and $45,109 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 27.66% 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 $382, 078 in the fund balance of the General Fund during the current fiscal year compared to the prior year. General Fund expenditures increased $651,718 from the prior year. Parks and recreation expenditures increased $329,610 and public safety expenditures increased 280, 096 with higher salary and benefit costs along with greater internal service charges. Total revenues increased $1,398,842. The largest increase of $902,877 occurred in property taxes due to an increase in the amount of property tax levied for the General Fund for the year. The EDA Fund recorded an increase of $221, 806 in its fund balance during the current fiscal year. The fund balance of $2,454, 609 was committed for economic development projects. The Debt Service Fund has a total fund balance of $3,667, 082, all of which is restricted for the payment of debt service. The net decrease in fund balance during the current fiscal year was 384, 681. Revenues decreased by $150,166 compared to the prior year due to less special assessment revenue while expenditures decreased by $52,583 based on bond payments. For additional transaction details, refer to the Long-Term Debt section located later in this Management's Discussion and Analysis, or to Note 7 in the notes to the basic financial statements. The Street Reconstruction Fund recorded an increase of $1,927, 669 in its fund balance during the current fiscal year. Revenues increased by $1,579, 012 compared to the prior year as additional intergovernmental revenue was received. All of the fund balance of $8,551,234 is committed. 8.2 City of Crystal Management's Discussion and Analysis 26 FINANCIAL ANALYSIS OF THE CITY'S FUNDS (CONTINUED) 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 $14,365, 684 at the end of the fiscal year. The water, sewer, storm drainage, street lights, and recycling funds reported increases in net position from operations of $2,053, 205, $ 715,061, $453,382, $27,524, $4,818, respectively. Budget Highlights The City's General Fund budget was not amended during the year. Total revenues exceeded the final budget by $137,422. Licenses and permits, intergovernmental, charges for sales and/or services, fines and forfeitures, and interest revenues were higher than budget, while property taxes and special assessments were lower than budget. Higher than anticipated police and fire state aids, federal grants, and investment returns contributed to the revenue budget variance. Actual expenditures were 499, 425 higher than the final budget mainly due to $391,000 of utility costs that will be offset next year with a transfer-in from the building fund. Public safety, public works, and recreation expenses were higher than budget, but general government and community development expenses were lower than budget. Capital Assets The City's net capital assets for its governmental and business-type activities as of December 31, 2023, are $101, 437, 231. This balance represents a net increase of $1,674,395 from the prior year. Additional details of capital asset activity for the year can be found in Note 6 in the notes to the basic financial statements. Long-term Debt The City's total long-term debt decreased by $1,411,913, or 12.52%, 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 7 in the notes to the basic 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 estimated total taxable market value. The current debt limitation for the City is $85,582, 458. The City currently has no outstanding General Obligation debt. 8.2 City of Crystal Management's Discussion and Analysis 27 FINANCIAL ANALYSIS OF THE CITY'S FUNDS (CONTINUED) 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 2023 fiscal year: The 2023 budget includes a 9.5% tax levy increase. This will be supplemented by increases in other revenues to cover an inflationary increases within the operating budget. Additional significant factors that influenced the 2023 budget preparation included unsettled union contracts, a decrease in Local Government Aid, the use of $2.2 million in American Rescue Plan Act funding for the Police Department capital construction, and an increase in capital fund savings. Requests for Information Questions concerning any of the information provided in this report or requests for additional information should be addressed to: City of Crystal Attn: Finance Director 4141 Douglas Drive N. Crystal, MN 55422 8.2 28 28 8.2 29 BASIC FINANCIAL STATEMENTS 8.2 See notes to basic financial statements. 30 Governmental Activities Business-Type Activities Total Assets Cash and investments (including cash equivalents) 27,107,036$ 5,627,820$ 32,734,856$ Temporarily restricted cash 25,956 - 25,956 Accrued interest 118,506 - 118,506 Accounts receivable 271,514 2,337,255 2,608,769 Delinquent taxes receivable 225,328 - 225,328 Special assessments receivable 5,698,503 434,128 6,132,631 Due from other governments 1,256,471 22,548 1,279,019 Lease receivable 952,880 - 952,880 Internal balances (1,400,000) 1,400,000 - Inventory 25,942 74,770 100,712 Prepaid items 27,821 147,520 175,341 Land held for resale 187,215 - 187,215 Equity interest in joint venture 1,179,598 5,719,069 6,898,667 Capital assets (net of accumulated depreciation/amortization, where applicable) Land 6,860,536 759,061 7,619,597 Buildings and structures 26,430,876 - 26,430,876 Improvements other than buildings 2,524,579 189,284 2,713,863 Machinery and equipment 1,871,154 866,408 2,737,562 Office equipment and furnishings 162,002 - 162,002 Software 54,154 9,815 63,969 Vehicles and trailers 2,177,552 - 2,177,552 Infrastructure 32,651,544 23,093,165 55,744,709 Construction in progress 1,517,113 2,045,935 3,563,048 Leased vehicles 224,053 - 224,053 Total assets 110,150,333 42,726,778 152,877,111 Deferred Outflows of Resources Pension-related deferred outflows of resourecs 7,946,660 124,632 8,071,292 OPEB-related deferred outflows of resources 334,673 23,050 357,723 Total deferred outflows of resources 8,281,333 147,682 8,429,015 Liabilities Accounts and other current liabilities 1,383,509 613,377 1,996,886 Interest payable 85,726 - 85,726 Unearned revenue 630,034 - 630,034 Noncurrent liabilities Due within one year 1,598,842 31,533 1,630,375 Due in more than one year 8,173,741 60,683 8,234,424 Total OPEB liability, due within one year 139,314 11,321 150,635 Total OPEB liability, due in more than one year 1,363,096 110,770 1,473,866 Net pension liability, due in more than one year 7,509,373 475,667 7,985,040 Total liabilities 20,883,635 1,303,351 22,186,986 Deferred Inflows of Resources Pension-related deferred inflows of resources 7,507,963 163,978 7,671,941 OPEB-related deferred inflows of resources 1,008,155 77,779 1,085,934 Deferred inflows of resources related to lease receivable 922,624 - 922,624 Total deferred inflows of resources 9,438,742 241,757 9,680,499 Net Position Net investment in capital assets 65,341,301 26,963,668 92,304,969 Restricted for TIF projects 983,179 - 983,179 Debt service 8,223,653 - 8,223,653 Special projects 1,120,563 - 1,120,563 Unrestricted 12,440,593 14,365,684 26,806,277 Total net position 88,109,289$ 41,329,352$ 129,438,641$ City of Crystal Statement of Net Position December 31, 2023 8.2 See notes to basic financial statements. 31 Program Revenues Expenses Charges for Services Operating Grants and Contributions Capital Grants and Contributions Governmental Activities Business-Type Activities Total Governmental activities General government 2,692,918$ 296,926$ 27,872$ 33,657$ (2,334, 463)$ -$ (2,334,463)$ Public safety 10,005,401 289,308 1,803,599 74,429 (7,838, 065) - (7,838,065) Public works 4,965,665 - 87,822 2,379,477 (2,498,366) - (2,498,366) Recreation 5,289,456 599,193 21,186 47,221 (4,621,856) - (4,621,856) Community development 1,628,317 1,108,662 5,576 43,305 (470,774) - ( 470,774) Interest on long-term debt 229,583 - - - (229,583) - (229,583) Total governmental activities 24,811,340 2,294,089 1,946,055 2,578,089 (17,993,107) - (17,993,107) Business-type activities Water 3,989,117 5,543,477 670,388 - - 2,224,748 2,224,748 Sanitary sewer 2,728,239 3,564,069 132,890 5,761 - 974,481 974,481 Storm drainage 930,995 1,395,139 - - - 464,144 464,144 Street lights 208,389 212,369 - - - 3,980 3,980 Recycling 465,835 477,324 - - - 11,489 11,489 Total business-type activities 8,322,575 11,192,378 803,278 5,761 - 3,678,842 3,678,842 Total primary government 33,133,915$ 13,486,467$ 2,749,333$ 2,583,850$ (17,993,107) 3,678,842 ( 14,314,265) General revenues Property taxes 15,387,668 - 15,387,668 Unrestricted grants and state aids 1,130,740 - 1,130,740 Unrestricted investment earnings 1,134,272 246,444 1,380,716 Other general revenue 213,123 - 213,123 Gain on sale of capital assets 687 - 687 Transfers 671,296 ( 671,296) - Total general revenues and transfers 18,537,786 ( 424,852) 18,112,934 Change in net position 544,679 3,253,990 3,798,669 Net position - beginning 87,564,610 38,075,362 125,639,972 Net position - ending 88,109,289$ 41,329,352$ 129,438,641$ Functions/Programs City of Crystal Statement of Activities Year Ended December 31, 2023 Net (Expense) Revenues and Changes in Net Position 8.2 See notes to basic financial statements. 32 General Fund Debt Service Street Reconstruction - Capital Projects Assets Cash and investments 6,369,493$ 3,662,500$ 5,120,861$ Temporarily restricted cash 25,956 - - Taxes receivable 209,019 - 6,337 Special assessments receivable 70,891 4,647,131 921,979 Accounts receivable 85,524 - 6,598 Lease receivable 952,880 - - Accrued interest 118,506 - - Advances to other funds 298,113 - 5,000,000 Due from other governments 91,119 - - Inventories 25,942 - - Prepaid items 19,167 - - Land held for resale - - - Total assets 8,266,610$ 8,309,631$ 11,055,775$ Liabilities Accounts payable 206,811$ 252$ 21,887$ Due to other governments 119,063 - - Salaries and benefits payable 450,575 - - Deposits payable 25,956 - - Contracts payable - - - Unearned revenue 174,680 - 6,598 Total liabilities 977,085 252 28,485 Deferred Inflows of Resources State aid related deferred inflows of resources - - 1,549,137 Unavailable revenue - property taxes 168,072 - 6,337 Unavailable revenue - special assessments 68,814 4,642,297 920,582 Deferred inflows of resources related to lease receivable 922,624 - - Total deferred inflows of resources 1,159,510 4,642,297 2,476,056 Fund Balances Nonspendable 45,109 - - Restricted - 3,667,082 - Committed 924,404 - 8,551,234 Assigned - - - Unassigned 5,160,502 - - Total fund balances 6,130,015 3,667,082 8,551,234 Total liabilities, deferred inflow of resouces, and fund balances 8,266,610$ 8,309,631$ 11,055,775$ City of Crystal Balance Sheet - Governmental Funds December 31, 2023 8.2 33 Other Governmental Funds Total Governmental Funds 6,793,955$ 21,946,809$ 25,956 9,972 225,328 58,502 5,698,503 124,216 216,338 952,880 118,506 1,170,000 6,468,113 436,849 527,968 25,942 19,167 187,215 187,215 8,780,709$ 36,412,725$ 140,127$ 369,077$ 9,325 128,388 10,992 461,567 2,000 27,956 4,424 4,424 448,756 630,034 615,624 1,621,446 1,549,137 9,122 183,531 58,502 5,690,195 922,624 67,624 8,345,487 45,109 2,103,742 5,770,824 5,891,034 15,366,672 102,685 102,685 5,160,502 8,097,461 26,445,792 8,780,709$ 36,412,725$ 8.2 34 8.2 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, 2023 Total fund balances - governmental funds 26,445,792$ Cost of capital assets 97,324,019 Less accumulated depreciation/amortization (54,595,152) 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 183,531 Special assessments 5,690,195 State shared taxes 1,549,137 Long-term liabilities are included in net position but are excluded from fund balances until due and payable. Bond principal payable (8,340,000) Premium on debt (272,491) Discount on debt 2,698 Lease liability (238,386) Interest payable (85,726) Compensated absences payable (924,404) 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 (1,008,155) Deferred outflows of resources related to OPEB 334,673 Total OPEB liability (1,502,410) 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 (7,507,963) Deferred outflows of resources related to pensions 7,946,660 Net pension liability (7,509,373) 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. 29,437,046 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 1,179,598 Total net position - governmental activities 88,109,289$ 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. 8.2 See notes to basic financial statements. 36 General Fund Debt Service Street Reconstruction - Capital Projects Revenues Property taxes 13,391,566$ -$ 384,221$ Special assessments 68,053 1,076,269 485,471 Licenses and permits 999,910 - - Intergovernmental 1,784,263 - 1,573,835 Charges for services 850,674 - - Fine and forfeitures 204,604 - - Interest 256,130 156,333 180,060 Miscellaneous 48,899 - 18,994 Total revenues 17,604,099 1,232,602 2,642,581 Expenditures Current General government 2,304,638 - - Public safety 9,362,715 - - Public works 1,948,482 - - Recreation 4,198,877 - - Economic development 822,685 - - Debt service Principal - 1,350,000 - Interest and other charges - 267,283 - Capital outlay - - 714,912 Total expenditures 18,637,397 1,617,283 714,912 Excess of revenues over under) expenditures (1,033,298) ( 384,681) 1,927,669 Other Financing Sources (Uses) Proceeds from sale of capital asset 551 - - Lease issuance - - - Transfers in 671,433 - - Transfers out (20,764) - - Total other financing sources (uses)651,220 - - Net change in fund balances (382,078) ( 384,681) 1,927,669 Fund Balances Beginning of year 6,512,093 4,051,763 6,623,565 End of year 6,130,015$ 3,667,082$ 8,551,234$ City of Crystal Statement of Revenues, Expenditures, and Changes in Fund Balances - Governmental Funds Year Ended December 31, 2023 8.2 37 Other Governmental Funds Total Governmental Funds 1,568,328$ 15,344,115$ 32,839 1,662,632 999,910 1,216,590 4,574,688 157,550 1,008,224 11,424 216,028 275,215 867,738 77,049 144,942 3,338,995 24,818,277 48,617 2,353,255 24,970 9,387,685 1,948,482 3,361 4,202,238 703,746 1,526,431 82,238 1,432,238 16,975 284,258 2,180,158 2,895,070 3,060,065 24,029,657 278,930 788,620 28,943 29,494 70,790 70,790 671,433 137) (20,901) 99,596 750,816 378,526 1,539,436 7,718,935 24,906,356 8,097,461$ 26,445,792$ 8.2 38 8.2 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, 2023 1,539,436$ 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 2,555,977 Depreciation/amortization expense (3,473,717) 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. (722,252) 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 1,350,000 Lease principal payments and adjustments 82,238 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 (1,293) Accrued interest payable 14,361 Compensated absences (6,448) OPEB expense 30,275 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 (183,079) 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. (597,149) Net income (loss) from equity interests is included in the change in net position but is excluded from the change in fund balances. (98,027) Change in net position - governmental activities 531,929$ 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 8.2 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, 2023 Original Final Actual Amounts Revenues Property taxes 13,697,548$ 13,697,548$ 13,391,566$ (305,982)$ Special assessments 71,950 71,950 68,053 (3,897) Licenses and permits 932,660 932,660 999,910 67,250 Intergovernmental 1,655,044 1,655,044 1,784,263 129,219 Charges for services 774,425 774,425 850,674 76,249 Fine and forfeitures 186,500 186,500 204,604 18,104 Interest 100,000 100,000 256,130 156,130 Miscellaneous revenues 48,550 48,550 48,899 349 Total revenues 17,466,677 17,466,677 17,604,099 137,422 Expenditures General government Mayor and council 335,573 335,573 121,953 (213,620) Administration 1,276,154 1,276,154 1,216,620 (59,534) Human resources 70,325 70,325 40,817 (29,508) Assessing 270,042 270,042 276,784 6,742 Legal 65,480 65,480 73,416 7,936 Elections 21,360 21,360 22,778 1,418 Finance 534,141 534,141 547,209 13,068 City buildings - - 5,061 5,061 Total general government 2,573,075 2,573,075 2,304,638 (268,437) Public safety Police 7,332,128 7,332,128 7,483,009 150,881 Fire 1,834,911 1,834,911 1,879,706 44,795 Total public safety 9,167,039 9,167,039 9,362,715 195,676 Public works Engineering 517,299 517,299 507,341 (9,958) Street maintenance 1,376,485 1,376,485 1,441,141 64,656 Total public works 1,893,784 1,893,784 1,948,482 54,698 Recreation Park maintenance 1,351,585 1,351,585 1,560,993 209,408 Forestry 104,188 104,188 181,562 77,374 Recreation 1,221,179 1,221,179 1,240,545 19,366 Community center 605,814 605,814 665,183 59,369 Waterslide/swimming pool 397,507 397,507 550,594 153,087 Total recreation 3,680,273 3,680,273 4,198,877 518,604 Variance with Final Budget Budgeted Amounts 8.2 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, 2023 Original Final Actual Amounts Expenditures (Continued) Community development Planning and code enforcement 823,801$ 823,801$ 822,685$ (1,116)$ Total expenditures 18,137,972 18,137,972 18,637,397 499,425 Excess of revenues under expenditures (671,295) ( 671,295) (1,033,298) (362,003) Other Financing Sources Proceeds from sale of capital asset - - 551 551 Transfers in 671,295 671,295 671,433 138 Transfers out - - (20,764) (20,764) Total other financing sources 671,295 671,295 651,220 (20,075) Net change in fund balances -$ -$ (382,078) (382,078)$ Fund Balance Beginning of year 6,512,093 End of year 6,130,015$ Budgeted Amounts Variance with Final Budget - Positive Negative) 8.2 See notes to basic financial statements. 42 Water Sewer Storm Drainage Streetlights Assets Current assets Cash and investments (including cash equivilants)2,837,457$ 161,243$ 1,552, 667$ 949,846$ Special assessment receivable 416,470 17,658 - - Accounts receivable 1,233,253 732,796 269, 564 37,330 Advances to other funds - 30,000 - 30,000 Due from other governments 22,548 - - - Inventories 58,192 14,627 1,951 - Prepaid expenses 1,720 144,940 860 - Total current assets 4,569,640 1,101,264 1,825, 042 1,017,176 Noncurrent assets Equity interest in joint venture 5,719,069 - - - Advances to other funds 900,000 - 500,000 - Capital assets Land 42,200 - 716,861 - Infrastructure 5,811,204 12,130,118 19,748, 039 648,391 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 862,253 1,139,143 44,539 - Total capital assets 8,663,104 13,759,872 20,708,490 665,252 Less accumulated depreciation (3,314,428) (5,297,536) (7,761, 767) ( 459,319) Net capital assets 5,348,676 8,462,336 12,946,723 205,933 Total noncurrent assets 11,967,745 8,462,336 13,446,723 205,933 Total assets 16,537,385 9,563,600 15,271, 765 1,223,109 Deferred Outflows of Resources Pension-related deferred outflows 49,934 49,834 24,864 - OPEB-related deferred outflows 9,218 9,232 4,600 - Total deferred outflows of resources 59,152 59,066 29,464 - Liabilities Current liabilities Accounts payable 176,583 58,223 7,295 27,326 Contracts payable 16,346 - - - Salaries and benefits payable 15,368 15,367 7,684 - Deposits payable 4,000 - - - Advances from other funds 60,000 - - - Due to other governments 254,361 21,631 9,193 - Current compensated absences 12,613 12,613 6,307 - Current OPEB liability 4,528 4,534 2,259 - Total current liabilities 543,799 112,368 32,738 27,326 Noncurrent liabilities Compensated absences 24,273 24,273 12,137 - Advances from other funds - - - - Net pension liability 190,577 190,196 94,894 - Total OPEB liability 44,299 44,366 22,105 - Total noncurrent liabilities 259,149 258,835 129,136 - Total liabilities 802,948 371,203 161, 874 27,326 Deferred Inflows of Resources Pension-related deferred inflows 65,698 65,567 32,713 - OPEB-related deferred intflows 31,105 31,152 15,522 - Total deferred intflows of resources 96,803 96,719 48,235 - Net Position Net investment in capital assets 5,348,676 8,462,336 12,946,723 205,933 Unrestricted 10,348,110 692,408 2,144,397 989,850 Total net position 15,696,786$ 9,154,744$ 15,091, 120$ 1,195,783$ City of Crystal Statement of Net Position - Proprietary Funds December 31, 2023 8.2 43 Recycling Utility Totals 126, 607$ 5,627,820$ 5,160,227$ 434,128 - 64,312 2,337,255 55,176 60,000 - 22,548 728,503 74,770 - 147,520 8,654 190, 919 8,704,041 5,952,560 5,719,069 - 1,400,000 - 759,061 - 38,337,752 - 36,321,319 204,107 595,214 608,395 29,445 220,778 2,420,418 4,821,071 4,639,552 2,045,935 1,504,613 43,796,718 48,710,942 16,833,050) (16,966,246) 26,963,668 31,744,696 34,082,737 31,744,696 190, 919 42,786,778 37,697,256 124,632 - 23,050 - 147,682 - 269,427 101,094 16,346 284,083 38,419 4,862 4,000 - 60,000 298,113 285,185 2,058 31,533 - 11,321 - 716,231 690,210 60,683 - 7,570,000 475,667 - 110,770 - 647,120 7,570,000 1,363,351 8,260,210 163,978 - 77,779 - 241,757 - 26,963,668 31,460,613 190,919 14,365,684 (2,023,567) 190, 919$ 41,329,352$ 29,437,046$ Governmental Activities - Internal Service Funds 8.2 See notes to basic financial statements. 44 Water Sewer Storm Drainage Operating Revenues Charges for services 5,543,477$ 3,564,069$ 1,395,139$ Other revenues 282,005 1,349 - Miscellaneous - 63,138 - Total operating revenues 5,825,482 3,628,556 1,395,139 Operating Expenses Personal services 360,954 350,285 174,797 Other services 464,784 430,257 237,990 Supplies 100,767 56,610 16,382 Insurance - - - Water purchases 2,854,787 - - Sewage disposal charges - 1,667,234 - Electric service - - - Recycling charges - - - Depreciation 204,807 223,853 501,826 Bad debt expense 618 - - Equipment - - - Total operating expenses 3,986,717 2,728,239 930,995 Operating income (loss)1,838,765 900,317 464,144 Nonoperating Revenues (Expenses) Investment income 109,308 21,431 64,811 Interest expense (2,400) - - Grants and contributions - 68,403 - Gain (loss) on sale of capital assets - - - Net income (loss) from joint venture 388,383 - - Total nonoperating revenue (expenses)495,291 89,834 64,811 Income before capital contributions and transfers 2,334,056 990,151 528,955 Capital contributions - 5,761 - Transfers in - - - Transfers out (280,851) ( 280,851) (75,573) Change in net position 2,053,205 715,061 453,382 Net position - beginning of year 13,643,581 8,439,683 14,637,738 Net position - end of year 15,696,786$ 9,154,744$ 15,091,120$ City of Crystal Statement of Revenues, Expenses, and Changes in Net Position - Proprietary Funds Year Ended December 31, 2023 8.2 45 Streetlights Recycling Utility Totals 212,369$ 477,324$ 11,192,378$ 2,259,900$ 283,354 - 63,138 163,508 212,369 477,324 11,538,870 2,423,408 886,036 127,403 35,019 115 1,168,165 1,275,427 173,759 27,409 33,084 2,854,787 - 1,667,234 - 140,630 - 140,630 - 465,720 465,720 - 32,740 - 963,226 1,449,606 618 - 440,547 208,389 465,835 8,320,175 3,353,476 3,980 11,489 3,218,695 ( 930,068) 44,934 5,960 246,444 266,534 2,400) - 68,403 - 28,807) 388,383 - 44,934 5,960 700,830 237,727 48,914 17,449 3,919,525 ( 692,341) 5,761 74,429 20,764 21,390) (12,631) ( 671,296) - 27,524 4,818 3,253,990 ( 597,148) 1,168,259 186,101 38,075,362 30,034,194 1,195,783$ 190,919$ 41,329,352$ 29,437,046$ Governmental Activities - Internal Service Funds 8.2 See notes to basic financial statements. 46 Water Sewer Storm Drainage Street Lights Cash Flows - Operating Activities Receipts from customers 5,577,154$ 3,510,704$ 1,393,315$ 212,454$ Interfund services provided and used - - - - Payments to suppliers (3,568, 871) (2,172, 095) ( 331,646) (161,017) Payments to employees (391,003) ( 376,470) ( 188,205) - Miscellaneous revenue - - - - Net cash flows - operating activities 1,617,280 962,139 873,464 51,437 Cash Flows - Noncapital Financing Activities Grants and contributions - 68,403 - - Transfer to other funds (280,851) ( 280,851) (75,573) (21,390) Net cash flows - noncapital financing activities (280,851) ( 212,448) (75,573) (21,390) Cash Flows - Capital and Related Financing Activities Payments made on advance to other funds (60,000) - - - Receipts from advance from other funds - 30,000 - 30,000 Receipts from special assessments - 5,483 - - Payments on special assessments (29,381) - - - Interest paid on debt (2,400) - - - Proceeds from disposal of capital assets - - - - Grants and contributions - - - - Acquisition of capital assets (1,117, 252) (1,149, 363) ( 160,187) (14,258) Net cash flows - capital and related financing activities (1,209, 033) (1,113, 880) ( 160,187) 15,742 Cash Flows - Investing Activities Interest and dividends received 109,308 21,431 64,811 44,934 Net change in cash and cash equivalents 236,704 ( 342,758) 702,515 90,723 Cash and cash equivalents, January 1 2,600, 753 504, 001 850,152 859,123 Cash and cash equivalents, December 31 2,837,457$ 161,243$ 1,552,667$ 949,846$ Reconciliation of Operating Income (Loss) to Net Cash Flows - Operating Activities Operating income (loss) 1,838, 765$ 900, 317$ 464,144$ 3,980$ Adjustments to reconcile operating income (loss) to net cash flows - operating activities Depreciation expense 204,807 223,853 501,826 32,740 Accounts receivable (233, 719) ( 117, 852) (1,824) 85 Due from other governments (14,609) - - - Prepaid items 22,919 (4,284) - - Inventory 5,214 (2,057) 416 - Accounts payable 163, 823 39,780 4,022 14,632 Contracts payable 16,346 (72,996) (90,871) - Due to other governmental units (358,917) 21,563 9,159 - Salaries payable 3,741 3,838 1,920 - Deposits payable 2,700 - - - OPEB (18,846) (18,740) (9,491) - Pension related activity (8,304) (4,643) (2,518) - Compensated absences payable (6,640) (6,640) (3,319) - Total adjustments (221,485) 61,822 409,320 47,457 Net cash flows - operating activities 1,617,280$ 962,139$ 873,464$ 51,437$ Noncash Capital and Related Financing Activities Net income (loss) from joint venture 388, 383$ -$ -$ -$ City of Crystal Statement of Cash Flows - Proprietary Funds Year Ended December 31, 2023 8.2 47 Recycling Utility Totals Internal Service Funds 471, 615$ 11,165, 242$ -$ 4,598,220 465,851) (6,699,480) (2,642,099) 955,678) (127,403) 29,344 5,764 3,510,084 1,858,062 68,403 - 12,631) ( 671, 296) 20,764 12,631) ( 602,893) 20,764 60,000) - 60,000 212,541 5,483 - 29,381) - 2,400) - 7,463 74,429 2,441, 060) (2,897,585) 2,467, 358) (2,603,152) 5,960 246, 444 266,534 907) 686, 277 (457,792) 127, 514 4,941, 543 5,618,019 126,607$ 5,627,820$ 5,160,227$ 11,489$ 3,218, 695$ (930,068)$ 963,226 1,449,606 5,709) ( 359, 019) (55,176) 14,609) 2,259,332 18,635 (8,654) 3,573 - 16) 222,241 (858,230) 147, 521) - 328, 195) (3,610) 9,499 4,862 2,700 - 47,077) - 15,465) - 16,599) - 5,725) 291,389 2,788,130 5,764$ 3,510, 084$ 1,858,062$ 388,383$ -$ 8.2 See notes to basic financial statements. 48 Hennepin Recycling Group Custodial Fund Assets Cash and investments including cash equivalents)487,618$ Liabilities Accounts payable 188,866$ Due to other governments 87,880 Total liabilities 276,746$ Net Position Held in custody for other governmental units 210,872$ See notes to basic financial statements. Hennepin Recycling Group Custodial Fund Additions Charges for serivces 1,286, 789$ Investment income 21,767 Intergovernmental 127,882 Refunds and reimbursements 141 Total additions 1,436,579 Deductions Recycling services 1,398,571$ Administrative and grant services 21,263 Other contract and professional services 97,065 Office supplies 4,190 Rentals 18,884 Total deductions 1,539,973 Change in net position (103,394) Net Position Beginning of year 314,266 End of year 210,872$ City of Crystal Statement of Fiduciary Net Position December 31, 2023 Statement of Changes Fiduciary Net Position Year Ended December 31, 2023 8.2 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. 8.2 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. 8.2 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. 8.2 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 streetlights. 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 - This fund is 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 - This 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. 8.2 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. 8.2 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. 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. 8.2 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 (Continued) 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: Classification 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 Years 11. Lease Receivable The City is a lessor for numerous noncancellable leases. The City recognizes a lease receivable and a deferred inflow of resources in the government-wide and governmental fund financial statements. At the commencement of a lease, the City measures the lease receivable at the present value of payments expected to be received during the lease term. Subsequently, the lease receivable is reduced by the principal portion of lease payments received. The deferred inflow of resources is initially measured as the initial amount of the lease receivable, adjusted for lease payments received at or before the lease commencement date. 8.2 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. Lease Receivable (Continued) Subsequently, the deferred inflow of resources is recognized as revenue over the life of the lease term in a systematic and rational manner. Key estimates and judgments include how the City determines (1) the discount rate, (2) lease term, (3) lease receipts, and (4) amortization. The City determines the discount rate for leases based on the applicable State and Local Government Securities (SLGS) rate. The lease term includes the noncancellable period of the lease. Lease receipts included in the measurement of the lease receivable is composed of fixed payments from the lessee. 12. Right-to-Use Lease Assets/Lease Liabilities The City recorded right-to-use lease assets as a result of implementing GASB Statement No. 87, Leases. The right-to-use lease assets are initially measured at an amount equal to the initial measurement of the lease liability plus any payments made prior to the lease term, less lease incentives, and plus ancillary charges necessary to place the lease into service. The right-to-use assets are amortized on a straight-line basis over the life of the related lease. Key estimates and judgments related to leases include (1) the discount rate, (2) lease term, (3) lease payments, and (4) amortization. The City uses the interest rate charged by the lessor as the discount rate. When the interest rate charged by the lessor is not provided, the City determines its estimated borrowing rate based on the applicable State and Local Government Securities rate. The lease term includes the noncancellable period of the lease. Lease payments included in the measurement of the lease liability are composed of fixed payments and purchase option the City is reasonably certain to exercise. The City monitors changes in circumstances that would require a re-measurement of the leases and will remeasure the right-to-use lease assets and liabilities if certain changes occur that are expected to significantly affect the amount of the lease liability. 13. 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 Balances – 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. 8.2 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) 13. Fund Balance Classifications (Continued) Restricted Fund Balances – 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 Balances – 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 Balances – 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 Balances – 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. 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. 14. 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. 8.2 58 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) 14. Compensated Absences (Continued) 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. 15. 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. 16. 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. 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. 8.2 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) 17. 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. 18. 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. 19. 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. 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. 8.2 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) 19. Budgets and Budgetary Accounting (Continued) 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. 20. 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. 21. 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. 8.2 61 City of Crystal Notes to Basic Financial Statements NOTE 2 – DEPOSITS AND INVESTMENTS (CONTINUED) A. Deposits (Continued) 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 $1,516,736 and the bank balance was 1,653, 070. 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. 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: 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 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. 8.2 62 City of Crystal Notes to Basic Financial Statements NOTE 2 – DEPOSITS AND INVESTMENTS (CONTINUED) B. Investments (Continued) As of December 31, 2023, the City had the following investments and maturities: Fair Less than Greater than Value One Year 1-5 Years 6-10 Years 10 Years Brokered certificates of deposit 9,395,613$ 2,357,435$ 6,671,091$ 367,087$ -$ State and local government bonds 12,148,211 - 11,771,211 377,000 - Money market accounts 10,185,801 10,185,801 - - - Total 31,729,625$ 12,543,236$ 18,442,302$ 744,087$ -$ 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." 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, 2023, 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, 2023: 21,920, 824 of investments are valued using a matrix pricing model (Level 2 inputs) 8.2 63 City of Crystal Notes to Basic Financial Statements NOTE 2 – DEPOSITS AND INVESTMENTS (CONTINUED) B. Investments (Continued) The following summary reconciles cash and investments to the financial statements: Cash on hand 2,069$ Carrying amount of deposits 1,516, 736 Carrying amount of investments 31,729, 625 Total 33,248, 430$ Statement of Net Position Cash and investments 32,734, 856$ Cash with fiscal agent 25,956 Statement of Fiduciary Net Position Cash and investments 487, 618 Total deposits and investments 33,248, 430$ NOTE 3 – INTERFUND RECEIVABLES AND PAYABLES A. Advances to/from Other Funds Balances as of December 31, 2023, are as follows: Original Amount Due Within Receivable Fund Payable Fund Amount Outstanding One Year General Internal Service Funds 298,113$ 298,113$ 298,113$ Street Reconstruction Internal Service Funds 5,000,000 5,000,000 - Other Governmental Funds Internal Service Funds 1,170,000 1,170,000 - Water Internal Service Funds 900,000 900,000 - Storm Water Internal Service Funds 500,000 500,000 - Sanitary Sewer Water 300,000 30,000 30,000 Streetlights Water 300,000 30,000 30,000 Total 8,468,113$ 7,928, 113$ 358,113$ 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. 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 $0.21/thousand gallons of water used has been approved and implemented. 8.2 64 City of Crystal Notes to Basic Financial Statements NOTE 4 – INTERFUND TRANSFERS Interfund transfers for the year ended December 31, 2023, are as follows: Transfers Out General Internal Service Funds Total General -$ 20,764 20,764$ Non-major governmental funds 137 - 137 Water 280, 851 - 280, 851 Sanitary sewer 280,851 - 280,851 Storm drainage 75,573 - 75,573 Streetlights 21,390 - 21,390 Recycling 12,631 - 12,631 Total 671, 433$ 20,764 692, 197$ Transfers In 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, 2023, was $76,710. 8.2 65 City of Crystal Notes to Basic Financial Statements NOTE 6 – CAPITAL ASSETS Capital asset activity for the year ended December 31, 2023, was as follows: Beginning Ending Balance Increases Decreases Balance Governmental activities Capital assets not being depreciated Land 6,860,536$ -$ -$ 6,860,536$ Construction in progress 17,398,835 2,981,853 (18,863,575) 1,517,113 Total capital assets not being depreciated 24,259,371 2,981,853 (18,863,575) 8,377,649 Other capital assets Buildings and structures 20,099,066 17,447,659 - 37,546,725 Improvements other than buildings 7,133,607 42,977 - 7,176,584 Machinery and equipment 6,860,969 13,941 - 6,874,910 Office equipment and furnishings 1,037,420 - - 1,037,420 Software 312,937 54,927 - 367,864 Vehicles and trailers 4,776,338 660,201 (78,702) 5,357,837 Traffic and transportation systems 71,207,169 491,841 - 71,699,010 Park systems 4,977,192 2,255,540 - 7,232,732 Leased vehicles 293,439 70,790 - 364,229 Total other capital assets at historical cost 116,698,137 21,037,876 (78,702) 137,657,311 Less accumulated depreciation for Buildings and structures (10,448,139) ( 667,710) - (11,115,849) Improvements other than buildings (4,400,442) ( 251,563) - (4,652,005) Machinery and equipment (4,593,790) ( 409,966) - (5,003,756) Office equipment and furnishings (821,501) (53,917) - ( 875,418) Software (311,051) (2,659) - ( 313,710) Vehicles and trailers (2,718,957) ( 503,760) 42,432 (3,180,285) Traffic and transportation systems (42,645,328) (2,674,357) - (45,319,685) Park systems (689,021) ( 271,492) - ( 960,513) Less accumulated amortization for Leased vehicles (52,277) (87,899) - ( 140,176) Total accumulated depreciation and amortization (66,680,506) (4,923,323) 42,432 (71,561,397) Total other capital assets, net 50,017,631 16,114,553 (36,270) 66,095,914 Governmental activities capital assets, net 74,277,002$ 19,096,406$ (18,899,845)$ 74,473,563$ 8.2 66 City of Crystal Notes to Basic Financial Statements NOTE 6 – CAPITAL ASSETS (CONTINUED) Capital asset activity for the year ended December 31, 2023, was as follows: Beginning Ending Balance Increases Decreases Balance Business-type activities Capital assets not being depreciated Land 759,061$ -$ -$ 759,061$ Improvements other than buildings 187,246 - - 187,246 Construction in progress 3,682,189 2,441,059 (4,077,313) 2,045,935 Total capital assets not being depreciated 4,628,496 2,441,059 (4,077,313) 2,992,242 Other capital assets Improvements other than buildings 16,861 - - 16,861 Machinery and equipment 2,420,418 - - 2,420,418 Software 29,445 - - 29,445 Utility systems 32,890,287 4,077,314 - 36,967,601 Traffic and transportation systems 1,370,151 - - 1,370,151 Total capital assets being depreciated 36,727,162 4,077,314 - 40,804,476 Less accumulated depreciation for Improvements other than buildings (13,980) ( 843) - (14,823) Machinery and equipment (1,409,263) ( 144,747) - (1,554,010) Software (13,741) (5,889) - (19,630) Utility systems (14,020,241) ( 780,040) - (14,800,281) Traffic and transportation systems (412,599) (31,707) - ( 444,306) Total accumulated depreciation (15,869,824) ( 963,226) - (16,833,050) Total other capital assets, net 20,857,338 3,114,088 - 23,971,426 Business-type activities capital assets, net 25,485,834$ 5,555,147$ (4,077,313)$ 26,963,668$ 8.2 67 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 224,657$ Public safety 599,950 Public works 2,844,189 Parks and recreation 1,213,754 Community development 40,773 Total depreciation and amortization expense - governmental activities 4,923,323$ Business-type activities Water 204,807$ Sanitary sewer 223,853 Storm drainage 501,826 Street light 32,740 Total depreciation expense - business-type activities 963,226$ 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 2011A 08/ 01/11 0.50%-3.55%1,705,000$ 02/01/ 27 370,000$ G. O. Improvement Bonds, Series 2012A 08/ 01/12 1.50%-2.13%2,635,000 02/01/ 28 750,000 G. O. Improvement Bonds, Series 2013A 08/ 01/13 2.00%-3.50%3,235,000 02/01/ 29 1,180,000 G.O. Improvement Bonds, Series 2015A 08/ 01/15 2.50%-3.00%2,550,000 02/01/ 31 1,230,000 G. O. Improvement Bonds, Series 2016A 08/ 25/16 2.00%-2.50%3,330,000 02/01/ 32 1,845,000 G. O. Improvement Bonds, Series 2017A 09/ 14/17 2.00%-3.00%4,665,000 02/01/ 33 2,965,000 Subtotal bonds payable 8,340,000 Lease liability 238,386 Unamortized bond premiums/discounts 269,793 Compensated absences payable 924,404 Total governmental activities 9,772,583$ 8.2 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, 2023, 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 160,000$ -$ ( 160,000)$ -$ -$ Improvement Bonds - 2011A 470,000 - ( 100,000) 370,000 100,000 Improvement Bonds - 2012A 915,000 - ( 165,000) 750,000 160,000 Improvement Bonds - 2013A 1,390,000 - (210,000) 1,180,000 205,000 Improvement Bonds - 2015A 1,400,000 - (170,000) 1,230,000 165,000 Improvement Bonds - 2016A 2,075,000 - (230,000) 1,845,000 225,000 Improvement Bonds - 2017A 3,280,000 - (315,000) 2,965,000 310,000 Total improvement bonds 9,690,000 - (1,350,000) 8,340,000 1,165,000 Bond premiums 314,098 - (41,607) 272,491 - Bond discounts (3,991) - 1,293 (2,698) - Subtotal 10,000,107 - (1,390,314) 8,609,793 1,165,000 Total bonds payable 10,000,107 - (1,390,314) 8,609,793 1,165,000 Lease liability 249,834 70,790 (82,238) 238,386 90,771 Compensated absences payable 917,956 947,153 ( 940,705) 924,404 343,071 Governmental activity long-term liabilities 11,167, 897$ 1,017,943$ (2,413, 257)$ 9,772, 583$ 1,598, 842$ Business-type activities Compensated absences payable 108, 815$ 60,772$ (77,371)$ 92,216$ 31,533$ 8.2 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 2024 1,165, 000$ 214,001$ 90,771$ 12,242$ 2025 1,150, 000 182,765 97,305 6,348 2026 1,120, 000 152,056 46,362 1,434 2027 1,090, 000 122,151 3,948 19 2028 985, 000 93,930 - - 2029-2033 2,830, 000 165,989 - - Total 8,340, 000$ 930,892$ 238,386$ 20,043$ Lease Liability GovernmentalActivitiesGovernmentalActivities G. O. Improvement Bonds Total delinquent special assessments receivable for all funds for the years ending December 31, 2023 and 2022, were $142,147 and $312, 590, 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 8.01%. 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. 8.2 70 City of Crystal Notes to Basic Financial Statements NOTE 8 – CONDUIT DEBT OBLIGATIONS (CONTINUED) As of December 31, 2023, there were two debt issues outstanding. The aggregate original issue amounts and principal balances outstanding as of December 31, 2023, are as follows: Original Principal Name of Issue Year Issue Balance LOGIS Government Facilities Revenue Bonds 2006 $ 6,000,000 $ 1,324,253 Crystal Leased Housing Multi Family Housing Bonds 2014 14,300,000 12,805,000 Total $ 20,300, 000 $ 14,129,253 NOTE 9 – PENSION PLANS The City participates in various pension plans, total pension expense for the year ended December 31, 2023, was $1,180,206. 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. 8.2 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. In 2023, legislation repealed the statute delaying increases for members retiring before full retirement age. 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. 8.2 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 2023 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, 2023, were $383, 784. 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 2023 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, 2023, were 628,747. 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, 2023, the City reported a liability of $3,545, 257 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 $97,809. The net pension liability was measured as of June 30, 2023, and the total pension liability used to calculate the net pension liability was determined by an actuarial valuation as of that date. The City's proportionate share of the net pension liability was based on the City's contributions received by PERA during the measurement period for employer payroll paid dates from July 1, 2022, through June 30, 2023, relative to the total employer contributions received from all of PERA's participating employers. The City's proportionate share was 0.0634%, at the end of the measurement period and 0.0635% for the beginning of the period. City's proportionate share of the net pension liability 3,545,257$ State of Minnesota's proportionate share of the net pension liability associated with the City 97,809 Total 3,643,066$ 8.2 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, 2023, the City recognized pension expense of $601,219 for its proportionate share of General Employees Plan's pension expense. Included in the amount, the City recognized $440 as pension expense (and grant revenue) for its proportionate share of the State of Minnesota's contribution of $16 million to the General Employees Fund. At December 31, 2023, the City reported its proportionate share of the General Employees Plan's deferred outflows of resources and deferred inflows of resources, related to pensions from the following sources: Differences between expected and actual economic experience 116,472$ 25,270$ Changes in actuarial assumptions 593,085 971,725 Net difference between projected and actual investment earnings - 174,384 Changes in proportion 28,478 50,780 Contributions paid to PERA subsequent to the measurement date 190,874 - Total 928,909$ 1,222,159$ Deferred Outflows of Resources Deferred Inflows of Resources 8.2 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 $190, 874 reported as deferred outflows of resources related to pensions resulting from City contributions subsequent to the measurement date will be recognized as a reduction of the net pension liability in the year ended December 31, 2024. Other amounts reported as deferred outflows and deferred inflows of resources related to pensions will be recognized in pension expense as follows: Pension Year Ending Expense December 31,Amount 2024 88,459$ 2025 (577,184) 2026 81,510 2027 (76,909) Total (484,124)$ Police and Fire Fund Pension Costs At December 31, 2023, the City reported a liability of $4,439, 783 for its proportionate share of the Police and Fire Fund's net pension liability. The net pension liability was measured as of June 30, 2023, 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, 2022, through June 30, 2023, relative to the total employer contributions received from all of PERA's participating employers. The City's proportionate share was 0.2571% at the end of the measurement period and 0.2776% for the beginning of the period. 8.2 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 contributed $18 million to the Police and Fire Fund in the plan fiscal year ended June 30, 2023. The contribution consisted of $9 million in direct state aid that meets 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, 2022. 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 $9 million in supplemental state aid will continue until the fund is 90% funded, or until the State Patrol Plan (administered by the Minnesota State Retirement System) is 90% funded, whichever occurs later. The State of Minnesota's proportionate share of the net pension liability associated with the City totaled 178,800. City's proportionate share of the net pension liability 4,439,783$ State of Minnesota's proportionate share of the net pension liability associated with the City 178,800 Total 4,618,583$ 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, 2023, the City recognized pension expense of $576,949 for its proportionate share of the Police and Fire Plan's pension expense. Included in this amount, the City recognized $(10,769) 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 $23,139 for the year ended December 31, 2023, as revenue and an offsetting reduction of the net pension liability for its proportionate share of the State of Minnesota's on-behalf contributions to the Police and Fire Fund. 8.2 76 City of Crystal Notes to Basic Financial Statements NOTE 9 – PENSION PLANS (CONTINUED) Public Employees' Retirement Association (Continued) D. Pension Costs (Continued) Police and Fire Fund Pension Costs (Continued) At December 31, 2023, the City reported its proportionate share of the Police and Fire Plan's deferred outflows of resources and deferred inflows of resources related to pensions from the following sources: Differences between expected and actual economic experience 1,258,726$ -$ Changes in actuarial assumptions 5,483,843 6,245,291 Net difference between projected and actual investment earnings - 93,770 Changes in proportion 85,440 110,721 Contributions paid to PERA subsequent to the measurement date 314,374 - Total 7,142,383$ 6,449,782$ Deferred Outflows of Resources Deferred Inflows of Resources The $314, 374 reported as deferred outflows of resources related to pensions resulting from City contributions subsequent to the measurement date will be recognized as a reduction of the net pension liability in the year ended December 31, 2024. Other amounts reported as deferred outflows and inflows of resources related to pensions will be recognized in pension expense as follows: Pension Year Ending Expense December 31,Amount 2024 177,151$ 2025 1,047 2026 1,062,989 2027 (356,137) 2028 (506,823) Total 378,227$ 8.2 77 City of Crystal Notes to Basic Financial Statements NOTE 9 – PENSION PLANS (CONTINUED) Public Employees' Retirement Association (Continued) 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 ofReturnAssetClass F. Actuarial Methods and Assumptions The total pension liability in the June 30, 2023, 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 7.0%. 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 7.0% 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 Plan and 1% for the Police and Fire Plan. 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. 8.2 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) 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 2022. The assumption changes were adopted by the Board and became effective with the July 1, 2023, 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 2023: General Employees Fund Changes in Actuarial Assumptions The investment return assumption and single discount rate were changed from 6.5% to 7.0%. Changes in Plan Provisions An additional one-time direct state aid contribution of $170.1 million will be contributed to the Plan on October 1, 2023. The vesting period of those hired after June 30, 2010, was changed from five years of allowable service to three years of allowable service. The benefit increase delay for early retirements on or after January 1, 2024, was eliminated. A one-time, non-compounding benefit increase of 2.5% minus the actual 2024 adjustment will be payable in a lump sum for calendar year 2024 by March 31, 2024. Police and Fire Fund Changes in Actuarial Assumptions The investment return assumption and single discount rate were changed from 6.5% to 7.0%. The single discount rate changed from 5.4% to 7.0%. Changes in Plan Provisions Additional one-time direct state aid contribution of 19.4 million will be contributed to the Plan on October 1, 2023. Vesting requirement for new hires after June 30, 2014, was changed from a graded 20-year vesting schedule to a graded 10-year vesting schedule, with 50% vesting after five years, increasing incrementally to 100% after 10 years. A one-time, non-compounding benefit increase of 3.0% will be payable in a lump sum for calendar year 2024 by March 31, 2024. Psychological treatment is required effective July 1, 2023, prior to approval for a duty disability benefit for a psychological condition relating to the member's occupation. The total and permanent duty disability benefit was increased, effective July 1, 2023. 8.2 79 City of Crystal Notes to Basic Financial Statements NOTE 9 – PENSION PLANS (CONTINUED) Public Employees' Retirement Association (Continued) G. Discount Rate The discount rate used to measure the total pension liability in 2023 was 7.0%. 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 and Police and Fire Plans were projected to be available to make all projected future benefit payments of current Plan members. Therefore, the long-term expected rate of return on pension plan investments was applied to all periods of projected benefit payments to determine the total pension liability. 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 Discount Discount Discount Rate (6.0%)Rate (7.0%)Rate (8.0%) City's proportionate share of the General Employees Fund net pension liability 6,271,844$ 3,545,257$ 1,302,535$ 1% Decrease in Current 1% Increase in Discount Discount Discount Rate (6.0%)Rate (7.0%)Rate (8.0%) City's proportionate share of the Police and Fire Fund net pension liability (asset)8,809,058$ 4,439,783$ 847,654$ 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. 8.2 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 2023 were: 2,038$ 2,038$ 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. 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 2023, the City contributed $115,054 to the plan. 8.2 81 City of Crystal Notes to Basic Financial Statements NOTE 10 – POST EMPLOYMENT HEALTH CARE PLAN (CONTINUED) D. Members As of December 31, 2021, 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 December 31, 2021, using the following actuarial assumptions, applied to all periods included in the measurement, unless otherwise specified: Discount Rate 4.05% 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 December 31, 2021, valuation were based on the results of an actuarial experience study for the period January 1, 2021 through December 31, 2021. F. Total OPEB Liability The City's total OPEB liability of $1,624,501 was measured as of December 31, 2022, and was determined by an actuarial valuation as of December 31, 2021. 8.2 82 City of Crystal Notes to Basic Financial Statements NOTE 10 – POST EMPLOYMENT HEALTH CARE PLAN (CONTINUED) F. Total OPEB Liability (Continued) Changes in the total OPEB liability are as follows: Total OPEB Liability Balances at January 1, 2023 1,827,197$ Changes for the year Service cost 150,635 Interest 39,558 Differences between expected and actual economic experience 34,990 Changes of assumptions (312,825) Benefit payments (115,054) Net changes (202,696) Balances at December 31, 2023 1,624,501$ G. OPEB Liability Sensitivity The following presents the City's total OPEB liability calculated using the discount rate of 4.05% as well as the liability measured using 1% lower and 1% higher than the current discount rate. 1% Decrease in Current 1% Increase in Discount Rate Discount Rate Discount Rate 3.05%)(4.05%)(5.05%) 1,774, 752$ 1,624, 501$ 1,487, 802$ Total OPEB Liability/(Asset) 8.2 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 in Current 1% Increase in Trend Rate Trend Rate Trend Rate 5.2% Decreasing to 2.9%) 6.2% Decreasing to 3.9%) 7.2% Decreasing to 4.9%) 1,421, 479$ 1,624, 501$ 1,865, 975$ Total OPEB Liability/(Asset) H. OPEB Expense and Deferred Outflows of Resources and Deferred Inflows of Resources Related to OPEB For the year ended December 31, 2023, the City recognized OPEB expense of $53,328. At December 31, 2023, the City reported deferred outflows of resources and deferred inflows of resources as shown below. Deferred Deferred Outflows of Inflows of Resources Resources Differences between expected and actual economic experience 51,042$ 573,687$ Changes in actuarial assumptions 203,721 512,247 Contributions made subsequent to the measurement date 102,960 - Total 357,723$ 1,085,934$ 8.2 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 $102, 960 reported as deferred outflows of resources resulting from contributions subsequent to the measurement date will be recognized as a reduction of the OPEB liability in the year ended December 31, 2024. Other amounts reported as deferred outflows of resources will be recognized in OPEB expense as follows: OPEB Expense 136,865)$ 136,865) 140,192) 140,304) 127,971) 148,974) Total (831,171)$ 2025 Year Ending December 31, 2026 2027 2028 Thereafter 2024 8.2 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, 2023, is as follows: Capital Project Fund General Debt Street Other Fund Service Reconstruction Funds Total Fund balances Nonspendable Inventory 25,942$ -$ -$ -$ 25,942$ Prepaid items 19,167 - - - 19,167 Total nonspendable 45,109 - - - 45,109 Restricted Housing and Redevelopment Assistance - - - 983,179 983,179 Debt service - 3,667, 082 - - 3,667,082 Public Safety Aid - - - 1,009,982 1,009,982 DWI-related enforcement, training, and education - - - 110,581 110,581 Total restricted - 3,667,082 - 2,103,742 5,770,824 Committed Compensated absences 924, 404 - - - 924,404 Housing and redevelopment Assistance - - - 2,454,609 2,454,609 Capital outlay - street reconstruction - - 8,551,234 - 8,551,234 Capital outlay police equipment - - - 2,827,300 2,827,300 Capital outlay cable TV equipment - - - 343,481 343,481 Capital outlay park improvement - - - 265,644 265,644 Total committed 924,404 - 8,551,234 5,891,034 15,366,672 Assigned Police Department purposes - - - 102,685 102,685 Unassigned 5,160, 502 - - - 5,160,502 Total fund balances 6,130, 015$ 3,667, 082$ 8,551, 234$ 8,097,461$ 26,445,792$ Major Funds 8.2 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 2023. There were no significant reductions in insurance coverage during 2023. 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 $81,500 is included in accounts payable of the Self-Insurance Fund at December 31, 2023. 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 $75,000 if claims are open from more than one year. Changes in claims liability for 2023 and 2022 are as follows: Year Claims Liability Beginning of Year Current Year Claims and Changes in Estimates Payments on Claims Claims Liability End of Year 2022 182,491$ (61,649)$ 1,100$ 119,742$ 2023 119,742 (26,977) 11,265 81,500 8.2 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, 2023, is $5,719,069. Due to concurrent timing of the City's fiscal year end and audit of the JWC, the City reports its equity interest in the JWC with a one-year lag. The following financial information is from the JWC's audited financial statements for the year ended December 31, 2022: Total assets 22,452,571$ Total liabilities 805,543 Net position Net investment in capital assets 11,566,913 Restricted for capital improvements 6,452,096 Restricted for emergency water supply 1,700,000 Unrestricted 1,135,098 Total net position 20,854,107$ Total program expenses 8,739,100$ Total program revenues 9,919,272 Net program revenue 1,180,172 Total general revenues 243,586 Change in net position 1,423,758 Net position Beginning of year 19,430,349 End of year 20,854,107$ 8.2 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, 2023, is $1,179,598. 8.2 89 City of Crystal Notes to Basic Financial Statements NOTE 13 – JOINT VENTURES AND JOINTLY GOVERNED ORGANIZATIONS (CONTINUED) A. Joint Ventures (Continued) 2. West Metro Fire-Rescue District (Continued) Due to concurrent timing of the City's fiscal year end and audit of the District, the City reports its equity interest in the District with a one-year lag. The following financial information is from the District's audited financial statements for the year ended December 31, 2022: Total assets and deferred outflows of resources 8,517, 112$ Total liabilities and deferred inflows of resources 6,788, 162 Net position Net investment in capital assets 1,191, 685 Restricted for donor-approved purposes 103, 323 Unrestricted 433, 942 Total net position 1,728, 950$ Total program expenses 3,358, 851$ Total program revenues 3,022, 141 Net program expense (336, 710) Total general revenues 138, 380 Change in net position (198, 330) Net position Beginning of year 1,927, 280 End of year 1,728, 950$ 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 2023 was $662, 675 which was allocated to various funds based on application usage. 8.2 90 City of Crystal Notes to Basic Financial Statements NOTE 13 – JOINT VENTURES AND JOINTLY GOVERNED ORGANIZATIONS (CONTINUED) B. Jointly Governed Organizations (Continued) 1. Local Government Information Systems Association (LOGIS) (Continued) 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 2023 was $662, 675 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 2023 was $0. 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 2023 was $0. 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 2023 was $29,973. 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 2023 was $465, 720. 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, 2023, outstanding commitments for these multi-year projects total approximately $282,137 and will be paid by the City Buildings Internal Service Fund and utility funds. 8.2 91 City of Crystal Notes to Basic Financial Statements NOTE 14 – COMMITMENTS AND CONTINGENCIES (CONTINUED) 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, 2023, 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 $900,000 towards the cost of constructing and equipping a gymnasium. In return, the City is entitled to use the space for public recreation as well as for programs and services for its residents. The agreement is for a term of 40 years, running from September 1, 2005, through August 31, 2045. ISD 281 has title to the property and is responsible for all subsequent operations and maintenance costs. 8.2 92 8.2 93 REQUIRED SUPPLEMENTARY INFORMATION 8.2 See notes to required supplementary information. 94 December 31,December 31,December 31,December 31, 2018 2019 2020 2021 Total OPEB Liability Service cost 105,872$ 116,648$ 87,322$ 109,504$ Interest 89,846 89,084 103,548 50,755 Differences between expected and actual experience - - (1,025,507) 18,627 Changes of assumptions 84,810 ( 161,829) 208,602 91,065 Benefit payments (77,076) ( 79,989) (64,991) ( 86,024) Net change in total OPEB liability 203,452 ( 36,086) ( 691,026) 183,927 Beginning of year 2,309,534 2,512,986 2,476,900 1,785,874 End of year 2,512,986$ 2,476,900$ 1,785,874$ 1,969,801$ 6,600,000$ 6,800,000$ 7,300,000$ 7,600,000$ 38.1%36.4%24.5%25.9% 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. Covered-employee payroll Total OPEB liability as a percentage of covered-employee payroll City of Crystal Schedule of Changes in Total OPEB Liability and Related Ratios 8.2 95 December 31,December 31, 2022 2023 128,242$ 150,635$ 43,252 39,558 9,194 34,990 207,576) (312,825) 115,716) (115,054) 142,604) (202,696) 1,969,801 1,827,197 1,827,197$ 1,624,501$ 7,900,000$ 8,400,000$ 23.1%19.3% 8.2 See notes to required supplementary information. 96 December 31,December 31,December 31,December 31, 2018 2019 2020 2021 Actuarially determined contribution 77,076$ 79,989$ 64,991$ 86,024$ Contributions in relation to the actuarially determined contribution 77,076 79,989 64,991 86,024 Contribution deficiency (excess)-$ -$ -$ -$ 6,600,000$ 6,800,000$ 7,300,000$ 7,600,000$ 1.17%1.18%0.89%1.13% 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. Covered-employee payroll covered-employee payroll Contributions as a percentage of City of Crystal Schedule of Employer Contributions - OPEB 8.2 97 December 31,December 31, 2022 2023 115,716$ 115,054$ 115,716 115,054 7,900,000$ 8,400,000$ 1.46%1.37% 8.2 See notes to required supplementary information. 98 City's Covered- employee Payroll 2023 0.0634%3,545,257$ 97,809$ 3,643,066$ 5,042,120$ 70.31% 83.10% 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- employee 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 2023 0.2571%4,439,783$ 178,800$ 4,618,583$ 3,375,621$ 131.52%86. 47% 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 8.2 See notes to required supplementary information. 99 2023 381, 747$ 381, 747$ -$ 5,089, 960$ 7.50% 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. 2023 628,747$ 628,747$ -$ 3,552,243$ 17.70% 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- employee 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- employee Payroll Fiscal Year Ending December 31, Contributions as a Percentage of Covered- employee Payroll Contribution Deficiency Excess) Last Ten Years 8.2 City of Crystal Notes to Required Supplementary Information 100 100 General Employees Fund 2023 Changes Changes in Actuarial Assumptions The investment return assumption and single discount rate were changed from 6.5% to 7.0%. Changes in Plan Provisions An additional one-time direct state aid contribution of $170.1 million was contributed to the Plan on October 1, 2023. The vesting period of those hired after June 30, 2010, was changed from five years of allowable service to three years of allowable service. The benefit increase delay for early retirements on or after January 1, 2024, was eliminated. A one-time, non-compounding benefit increase of 2.5% minus the actual 2024 adjustment will be payable in a lump sum for calendar year 2024 by March 31, 2024. 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. 8.2 City of Crystal Notes to Required Supplementary Information 101 101 General Employees Fund (Continued) 2020 Changes (Continued) Changes in Actuarial Assumptions (Continued) The assumed number of married male new retirees electing the 100% Joint and Survivor option changed from 35% to 45%. The assumed number of married female new retires electing the 100% Joint and Survivor option changed from 15% to 30%. The corresponding number of married new retirees electing the Life annuity option was adjusted accordingly. Changes in Plan Provisions Augmentation for current privatized members was reduced to 2.0% for the period July 1, 2020 through December 31, 2023, and 0.0% thereafter. Augmentation was eliminated for privatizations occurring after June 30, 2020. 2019 Changes Changes in Actuarial Assumptions The mortality projection scale was changed from MP-2017 to MP-2018. Changes in Plan Provisions The employer supplemental contribution was changed prospectively, decreasing from $31.0 million to $21.0 million per year. The State’s special funding contribution was changed prospectively, requiring $16.0 million due per year through 2031. 2018 Changes Changes in Actuarial Assumptions The mortality projection scale was changed from MP-2015 to MP-2017. The assumed benefit increase was changed from 1.0% per year through 2044 and 2.5% per year thereafter to 1.25% per year. 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. Annual 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. 8.2 City of Crystal Notes to Required Supplementary Information 102 102 General Employees Fund (Continued) 2017 Changes (Continued) Changes in Actuarial Assumptions (Continued) The assumed annual increase rate was changed from 1.0% per year for all years to 1.0% per year through 2044 and 2.5% per year thereafter. Changes in Plan Provisions The State’s contribution for the Minneapolis Employees Retirement Fund equals $16,000,000 in 2017 and 2018, and $6,000,000 thereafter. The Employer Supplemental Contribution for the Minneapolis Employees Retirement Fund changed from $21,000,000 to $31,000, 000 in calendar years 2019 to 2031. The State’s contribution changed from $16,000,000 to $6,000,000 in calendar years 2019 to 2031. 2016 Changes Changes in Actuarial Assumptions The assumed post-retirement benefit increase rate was changed from 1.0% per year through 2035 and 2.5% per year thereafter to 1.0% per year for all future years. The assumed investment return was changed from 7.9% to 7.5%. The single discount rate was changed from 7.9% to 7.5%. Other assumptions were changed pursuant to the experience study dated June 30, 2015. The assumed future salary increases, payroll growth, the inflation was decreased by 0.25% to 3.25% for payroll growth and 2.50% for inflation. Changes in Plan Provisions There have been no changes since the prior valuation. 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. 8.2 City of Crystal Notes to Required Supplementary Information 103 103 Police and Fire Fund 2023 Changes Changes in Actuarial Assumptions The investment return assumption was changed from 6.5% to 7.0%. The single discount rate changed from 5.4% to 7.0%. Changes in Plan Provisions Additional one-time direct state aid contribution of 19.4 million will be contributed to the Plan on October 1, 2023. Vesting requirement for new hires after June 30, 2014, was changed from a graded 20-year vesting schedule to a graded 10-year vesting schedule, with 50% vesting after five years, increasing incrementally to 100% after 10 years. A one-time, non-compounding benefit increase of 3.0% will be payable in a lump sum for calendar year 2024 by March 31, 2024. Psychological treatment is required effective July 1, 2023, prior to approval for a duty disability benefit for a psychological condition relating to the member’s occupation. The total and permanent duty disability benefit was increased, effective July 1, 2023. 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. 8.2 City of Crystal Notes to Required Supplementary Information 104 104 Police and Fire Fund (Continued) 2021 Changes (Continued) 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. 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 Annual 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. 8.2 City of Crystal Notes to Required Supplementary Information 105 105 Police and Fire Fund (Continued) 2017 Changes (Continued) Changes in Actuarial Assumptions (Continued) Assumed termination rates were decreased to 3% for the first three years of service. Rates beyond the select period of three years were adjusted, resulting in more expected terminations overall. Assumed percentage of married female members was decreased from 65% to 60%. Assumed age difference was changed from separate assumptions for male members (wives assumed to be three years younger) and female members (husbands assumed to be four years older) to the assumption that males are two years older than females. The assumed percentage of female members electing Joint and Survivor annuities was increased. The assumed annual 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%. 8.2 City of Crystal Notes to Required Supplementary Information 106 106 Post Employment Health Care Plan 2020 Changes Changes in Actuarial Assumptions The discount rate decreased from 2.06% in 2022 to 4.05% in 2023. 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. 8.2 107 SUPPLEMENTARY INFORMATION 8.2 108 8.2 109 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. Public Safety Aid This fund is used to account for revenues and expenditures relating to public safety aid. 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. 8.2 110 TIF Districts Special Revenue Special Projects EDA Public Safety Aid Assets Cash and investments 1,035,306$ 217,419$ 2,184,172$ 1,009, 982$ Accounts receivable - 25,000 97,620 - Taxes receivable - - 8,347 - Special assessments receivable - - 58,502 - Advances to other funds - - - - Due from other governments - 8,093 5,000 - Land held for resale - - 187,215 - Total assets 1,035,306$ 250,512$ 2,540,856$ 1,009,982$ Liabilities Accounts payable 47,703$ 4,133$ 6,044$ -$ Contracts payable 4,424 - - - Due to other governments - 8,113 1,212 - Salaries and benefits payable - - 10,992 - Deposits payable - - 2,000 - Unearned revenue - 25,000 - - Total liabilities 52,127 37,246 20,248 - Deferred Inflows of Resources Unavailable revenue - property taxes - - 7,497 - Unavailable revenue - special assessments - - 58,502 - Total deferred inflows of resources - - 65,999 - Fund Balances Restricted 983,179 110,581 - 1,009, 982 Committed - - 2,454,609 - Assigned - 102,685 - - Total fund balances 983,179 213,266 2,454,609 1,009, 982 Total liabilities, deferred inflow of resouces, and fund balances 1,035,306$ 250,512$ 2,540,856$ 1,009, 982$ City of Crystal Combining Balance Sheet - Nonmajor Governmental Funds December 31, 2023 Special Revenue 8.2 111 Special Revenue Total Cable TV Equipment Park Improvement Police Equipment Revolving Total Total Governmental Funds 4,446, 879$ 343,509$ 347,863$ 1,655,704$ 2,347,076$ 6,793,955$ 122,620 - - 1,596 1,596 124,216 8,347 - 1,625 - 1,625 9,972 58,502 - - - - 58,502 1,170,000 1,170,000 1,170,000 13,093 - 423,756 - 423,756 436,849 187,215 - - - - 187,215 4,836, 656$ 343,509$ 773,244$ 2,827,300$ 3,944,053$ 8,780,709$ 57,880$ 28$ 82,219$ -$ 82,247$ 140,127$ 4,424 - - - - 4,424 9,325 - - - - 9,325 10,992 - - - - 10,992 2,000 - - - - 2,000 25,000 - 423,756 - 423,756 448,756 109, 621 28 505,975 - 506,003 615,624 7,497 - 1,625 - 1,625 9,122 58,502 - - - - 58,502 65,999 - 1,625 - 1,625 67,624 2,103, 742 - - - - 2,103,742 2,454, 609 343,481 265,644 2,827,300 3,436,425 5,891,034 102, 685 - - - - 102,685 4,661,036 343,481 265,644 2,827,300 3,436,425 8,097,461 4,836, 656$ 343,509$ 773,244$ 2,827,300$ 3,944,053$ 8,780,709$ Capital Projects 8.2 112 TIF Districts Special Revenue Special Projects EDA Public Safety Aid Revenues Property taxes 353,309$ -$ 312,765$ -$ Special assessments - - 32,839 - Intergovernmental - 8,093 17,500 1,010, 119 Charges for services - - 153,000 - Fine and forfeitures - 11,424 - - Interest 45,801 - 102,326 - Other 5,576 71,388 - - Total revenues 404,686 90,905 618,430 1,010, 119 Expenditures Current General government - 42,536 - - Public safety - 20,156 - - Recreation - 1,876 - - Economic development 307,122 - 396,624 - Debt service Principal - - - - Interest and other charges - - - - Capital outlay - 760 - - Total expenditures 307,122 65,328 396,624 - Excess of revenues over under) expenditures 97,564 25,577 221,806 1,010, 119 Other Financing Sources (Uses) Proceeds from sale of capital asset - - - - Lease issuance - - - - Transfers out - - - (137) Total other financing sources (uses)- - - (137) Net change in fund balances 97,564 25,577 221,806 1,009, 982 Fund Balances Beginning of year 885,615 187,689 2,232,803 - End of year 983,179$ 213,266$ 2,454,609$ 1,009,982$ Special Revenue City of Crystal Combining Statement of Revenues, Expenditures, and Changes in Fund Balances - Nonmajor Governmental Funds Year Ended December 31, 2023 8.2 113 Special Revenue Total Cable TV Equipment Park Improvement Police Equipment Revolving Total Total Other Governmental Funds 666,074$ -$ 741,057$ 161,197$ 902, 254$ 1,568,328$ 32,839 - - - - 32,839 1,035,712 33,657 147,221 - 180, 878 1,216,590 153,000 - 4,550 - 4,550 157,550 11,424 - - - - 11,424 148,127 16,115 31,528 79,445 127, 088 275,215 76,964 - 10 75 85 77,049 2,124,140 49,772 924,366 240,717 1,214, 855 3,338,995 42,536 6,081 - - 6,081 48,617 20,156 - - 4,814 4,814 24,970 1,876 - 1,485 - 1,485 3,361 703,746 - - - - 703,746 82,238 82,238 82,238 16,975 16,975 16,975 760 - 2,023,010 156,388 2,179, 398 2,180,158 769,074 6,081 2,024,495 260,415 2,290, 991 3,060,065 1,355,066 43,691 (1,100,129) (19,698) (1,076, 136) 278,930 6,363 22,580 28,943 28,943 70,790 70,790 70,790 137) - - - - (137) 137) - 6,363 93,370 99,733 99,596 1,354,929 43,691 (1,093,766) 73,672 (976,403) 378,526 3,306,107 299,790 1,359,410 2,753,628 4,412, 828 7,718,935 4,661,036$ 343,481$ 265,644$ 2,827,300$ 3,436, 425$ 8,097,461$ Capital Projects 8.2 114 Original Final Actual Amounts Revenues Property taxes 358,753$ 358,753$ 353,309$ (5,444)$ Interest 5,000 5,000 45,801 40,801 Miscellaneous revenues - - 5,576 5,576 Total revenues 363,753 363,753 404,686 40,933 Expenditures Current Community development 278,200 278,200 307,122 28,922 u nNet change in fund balances 85,553$ 85,553$ 97,564 12,011$ Fund Balance Beginning of year 885,615 End of year 983,179$ 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, 2023 8.2 115 Original Final Actual Amounts Revenues Property taxes 349,034$ 349,034$ 312,765$ (36,269)$ Special assessments - - 32,839 32,839 Intergovernmental - - 17,500 17,500 Charges for services - - 153,000 153,000 Investment income 8,000 8,000 102,326 94,326 Total revenues 357,034 357,034 618,430 261,396 Expenditures Current Community development 357,923 357,923 396,624 38,701 Net change in fund balances (889)$ ( 889)$ 221,806 222,695$ Fund Balances Beginning of year 2,232,803 End of year 2,454,609$ 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, 2023 8.2 116 City of Crystal Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual Street Reconstruction - Capital Projects Year Ended December 31, 2023 Original Final Actual Amounts Revenues Property taxes 384,221$ 384,221$ 384,221$ -$ Special assessments 230,000 230,000 485,471 255,471 Intergovernmental 400,000 400,000 1,573,835 1,173,835 Investment income 25,000 25,000 180,060 155,060 Miscellaneous revenues - - 18,994 18,994 Total revenues 1,039,221 1,039,221 2,642,581 1,603,360 Expenditures Public works - capital outlay 1,369,699 1,369,699 714,912 (654,787) Net change in fund balances (330,478)$ (330,478)$ 1,927,669 2,258,147$ Fund Balance Beginning of year 6,623,565 End of year 8,551,234$ Budgeted Amounts Variance with Final Budget 8.2 117 City of Crystal Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual Park Improvement - Capital Projects Year Ended December 31, 2023 Original Final Actual Amounts Revenues Property taxes 741,057$ 741,057$ 741,057$ -$ Intergovernmental - - 147,221 147,221 Charges for services - - 4,550 4,550 Interest 5,000 5,000 31,528 26,528 Miscellaneous revenues - - 10 10 Total revenues 746,057 746,057 924,366 178,309 Expenditures Current Park and recreation - - 1,485 1,485 Capital outlay Park and recreation 1,312,000 1,312,000 2,023,010 711,010 Total expenditures 1,312,000 1,312,000 2,024,495 712,495 Excess of revenues under expenditures (565,943) (565,943) (1,100,129) ( 534,186) Other financing uses Proceeds from sale of capital asset - - 6,363 6,363 Net change in fund balances (565,943)$ (565,943)$ (1,093,766) ( 527,823)$ Fund Balance Beginning of year 1,359,410 End of year 265,644$ Budgeted Amounts Variance with Final Budget 8.2 118 City of Crystal Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual Police Equipment Revolving - Capital Projects Year Ended December 31, 2023 Original Final Actual Amounts Revenues Property taxes 161,197$ 161,197$ 161,197$ -$ Interest 15,000 15,000 79,445 64,445 Miscellaneous revenues - - 75 75 Total revenues 176,197 176,197 240,717 64,520 Expenditures Current Public safety - - 4,814 4,814 Debt service: Principal - - 82,238 82,238 Interest and other charges - - 16,975 16,975 Capital outlay - - 156,388 156,388 Total expenditures - - 260,415 260,415 Excess of revenues over under) expenditures 176,197 176,197 (19,698) (195,895) Other Financing Sources Proceeds from sale of capital asset - - 22,580 22,580 Lease issuance - - 70,790 70,790 Total other financing sources (uses)- - 93,370 93,370 Net change in fund balances 176,197$ 176,197$ 73,672 (102,525)$ Budgeted Amounts Variance with Final Budget 8.2 119 Self Insurance Fleet Information Technology City Buildings Totals Assets Current assets Cash and investments including cash equivilants)244,948$ 2,019,158$ -$ 2,896,121$ 5,160,227$ Accounts Receivable 54,968 - - 208 55,176 Due from other governments - - - 728,503 728,503 Prepaid expenses - - - 8,654 8,654 Total current assets 299,916 2,019,158 - 3,633,486 5,952,560 Noncurrent assets Capital assets Software - 9,428 202,658 8,692 220,778 Buildings - 120,000 - 36,201,319 36,321,319 Improvements other than buildings - 170,274 258,421 166,519 595,214 Machinery and equipment - 4,239,862 462,738 118,471 4,821,071 Office equipment and furnishings - - 608,395 - 608,395 Vehicles - 4,639,552 - - 4,639,552 Construction In Progress - - - 1,504,613 1,504,613 Total capital assets - 9,179,116 1,532,212 37,999,614 48,710,942 Less accumulated depreciation - (5,617,891) (1,243,744) ( 10,104,611) (16,966,246) Net capital assets - 3,561,225 288,468 27,895,003 31,744,696 Liabilities Current liabilities Accounts payable 81,522 16,518 3,054 - 101,094 Contracts payable - - - 284,083 284,083 Salaries and Benefits Payable 4,862 - - - 4,862 Advances from other funds - - 298,113 - 298,113 Due to other governments - - 2,058 - 2,058 Total current liabilities 86,384 16,518 303,225 284,083 690,210 Noncurrent Liabilities Advances from other funds - - - 7,570,000 7,570,000 Total liabilities 86,384 16,518 303,225 7,854,083 8,260,210 Net Position Net investment in capital assets - 3,561,225 288,468 27,610,920 31,460,613 Unrestricted 213,532 2,002,640 ( 303,225) ( 3,936,514) (2,023,567) Total net position 213,532 5,563,865 (14,757) 23,674,406 29,437,046 City of Crystal Combining Statement of Net Position - Internal Service Funds December 31, 2023 8.2 120 Self Insurance Fleet Information Technology City Buildings Totals Operating revenues Charges for services -$ 347,391$ 662,509$ 1,250,000$ 2,259,900$ Miscellaneous 77,816 22 - 85,670 163,508 Total operating revenues 77,816 347,413 662, 509 1,335,670 2,423,408 Operating expenses Personal services - - 127,403 - 127,403 Other services 109,400 18,413 651,191 496,423 1,275,427 Supplies - - - 27,409 27,409 Insurance - 33,084 - - 33,084 Depreciation - 725,884 66,724 656,998 1,449,606 Equipment - 4,038 66,174 370,335 440,547 Total operating expenses 109,400 781,419 911,492 1,551,165 3,353,476 Operating income (loss)(31,584) ( 434,006) (248, 983) (215,495) (930,068) Nonoperating revenues (expenses) Investment income 8,479 104,658 - 153,397 266,534 Gain (loss) on sale of capital assets - (28,807) - - (28,807) Total nonoperating revenue expenses)8,479 75,851 - 153,397 237,727 Income before capital contributions (23,105) ( 358,155) (248, 983) (62,098) (692,341) Capital contributions - - - 74,429 74,429 Transfers In - - 20,764 - 20,764 Change in net position (23,105) ( 358,155) (228, 219) 12,331 (597,148) Net position - beginning 236,637 5,922,020 213,462 23,662,075 30,034,194 Net position - ending 213,532$ 5,563,865$ (14,757)$ 23,674,406$ 29,437,046$ City of Crystal Combining Statement of Revenues, Expenses, and Changes in Net Position - Internal Service Funds For the Year Ended December 31, 2023 8.2 121 Self Insurance Fleet Information Technology City Buildings Totals Cash Flows - Operating Activities Interfund services provided and used -$ 347,413$ 662,509$ 3,588,298$ 4,598, 220$ Payments to suppliers (142, 790) ( 449,170) ( 721,983) (1,328,156) (2,642, 099) Payments to employees - - (127,403) - (127,403) Miscellaneous revenue 22,848 - - 6,496 29,344 Net cash flows - operating activities (119, 942) ( 101,757) ( 186,877) 2,266,638 1,858, 062 Cash Flows - Noncapital Financing Activities Transfer from other funds - - 20,764 - 20,764 Cash Flows - Capital and Related Financing Activities Change in advance from other funds - - 212,541 - 212, 541 Proceeds from disposal of capital assets - 7,463 - - 7,463 Grants and contributions - - - 74,429 74,429 Acquisition of capital assets - (660,201) (46,428) (2,190,956) (2,897,585) Net cash flows - capital and related financing activities - (652,738) 166,113 (2,116,527) (2,603, 152) Cash Flows - Investing Activities Interest and dividends received 8,479 104,658 - 153,397 266, 534 Net change in cash and cash equivalents (111, 463) ( 649,837) - 303,508 ( 457, 792) Cash and cash equivalents, January 1 356, 411 2,668,995 - 2,592,613 5,618, 019 Cash and cash equivalents, December 31 244, 948$ 2,019,158$ -$ 2,896,121$ 5,160, 227$ Reconciliation of Operating Income (Loss) to Net Cash Flows - Operating Activities Operating income (loss)(31,584)$ ( 434,006)$ ( 248,983)$ ( 215,495)$ ( 930, 068)$ Adjustments to reconcile operating income (loss) to net cash flows - operating activities Depreciation expense - 725,884 66,724 656,998 1,449, 606 Accounts receivable (54,968) - - (208) (55,176) Due from other governments - - - 2,259,332 2,259,332 Prepaid items - - - (8,654) (8,654) Accounts payable (38,252) ( 393,635) (1,008) ( 425,335) ( 858,230) Due to other governmental units - - (3,610) - (3,610) Salaries payable 4,862 - - - 4,862 Total adjustments (88,358) 332,249 62,106 2,482,133 2,788,130 Net cash flows - operating activities (119,942)$ ( 101,757)$ ( 186,877)$ 2,266,638$ 1,858,062$ City of Crystal Combining Statement of Cash Flows - Internal Service Funds Year Ended December 31, 2023 8.2 122 8.2 123 STATISTICAL SECTION 8.2 124 8.2 125 City of Crystal Statistical Section (Unaudited) This part of the City of Crystal's annual comprehensive 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 demogra phic 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 8.2 126 2014 2015 2016 2017 Governmental Activities Net investment in capital assets 34,052,606$ 39,903,269$ 40,421,924$ 40,534,551$ Restricted 16,360,362 18,102,105 18,580,900 20,099,040 Unrestricted 39,694,502 25,901,804 25,370,751 24,388,020 Total governmental activities net position 90,107,470$ 83,907,178$ 84,373,575$ 85,021,611$ Business-Type Activities Net investment in capital assets 15,448,191$ 19,057,632$ 19,889,415$ 22,283,455$ Unrestricted 9,397,654 7,484,722 8,575,762 9,572,606 Total business-type activities net position 24,845,845$ 26,542, 354$ 28,465,177$ 31,856, 061$ Primary Government Net investment in capital assets 49,500,797$ 58,960, 901$ 60,311,339$ 62,818, 006$ Restricted 16,360,362 18,102, 105 18,580,900 20,099, 040 Unrestricted 49,092,156 33,386, 526 33,946,513 33,960, 626 Total primary government net position 114,953,315$ 110,449,532$ 112,838,752$ 116,877,672$ City of Crystal Net Position By Component Accrual Basis of Accounting) Last Ten Fiscal Years unaudited) 8.2 127 Table 1 2018 2019 2020 2021 2022 2023 41,195,367$ 46,233, 147$ 48,365, 123$ 51,326,806$ 62,949, 446$ 65,341,301$ 18,671,275 17,072,361 14,067,681 12,295,252 10,999,656 10,327,395 23,516,447 22,294, 201 23,420, 637 20,389,276 13,615, 508 12,440,593 83,383,089$ 85,599,709$ 85,853,441$ 84,011,334$ 87,564,610$ 88,109,289$ 21,693,069$ 19,815, 262$ 21,760, 477$ 22,539,961$ 25,321, 967$ 26,963,668$ 10,836,119 11,901, 367 12,074, 284 13,285,540 12,753, 395 14,365,684 32,529,188$ 31,716, 629$ 33,834, 761$ 35,825,501$ 38,075, 362$ 41,329,352$ 62,888,436$ 66,048,409$ 70,125,600$ 73,866,767$ 88,271,413$ 92,304,969$ 18,671,275 17,072, 361 14,067, 681 12,295,252 10,999, 656 10,327,395 34,352,566 34,195, 568 35,494, 921 33,674,816 26,368, 903 26,806,277 115,912,277$ 117, 316, 338$ 119,688, 202$ 119, 836,835$ 125, 639, 972$ 129,438,641$ 8.2 128 2014 2015 2016 2017 Expenses Governmental activities General government 2,767,171$ 2,646,651$ 3,226,278$ 2,964,731$ Public safety 6,085,801 6,438,462 7,685,700 7,546,777 Public works 5,034,894 5,132,260 6,511,486 4,224,253 Parks and recreation 2,622,407 2,816,220 2,759,211 3,128,275 Community development 1,358,486 1,287,427 1,174,426 1,616,752 Interest on long-term debt 529,448 555,121 563,308 541,919 Total governmental activities expenses 18,398,207 18,876,141 21,920,409 20,022,707 Business-type activities Water 3,928,301$ 4,131,931$ 3,047,910$ 2,970,228$ Sanitary sewer 1,931,725 1,995,561 2,169,072 2,144,581 Storm drainage 662,419 883,284 903,884 809,169 Street lights 169,664 151,305 155,056 174,479 Recycling 324,105 324,393 324,496 324,853 Total business-type activities expenses 7,016,214 7,486,474 6,600,418 6,423,310 Total primary government expenses 25,414,421$ 26,362,615$ 28,520,827$ 26,446,017$ Program Revenues Governmental activities Charges for services General government 354,802$ 228,357$ 320,899$ 279,603$ Public safety 438,328 412,016 411,592 380,498 Public works 303 - - - Parks and recreation 465,769 483,741 515,056 513,457 Community development 1,739,829 761,469 767,755 796,152 Operating grants and contributions 595,463 634,881 728,449 659,450 Capital grants and contributions 2,613,480 5,533,872 7,393,250 7,473,350 Total governmental activities program revenues 6,207,974 8,054,336 10,137,001 10,102,510 Business-type activities Charges for services Water 2,601,186 2,962,818 3,076,263 3,138,317 Sanitary sewer 2,020,522 2,079,431 2,193,599 2,300,866 Storm drainage 760,884 809,067 867,598 1,058,549 Street lights 181,720 186,125 191,261 195,122 Recycling 334,101 334,493 334,926 340,250 Operating grants and contributions 388,648 1,669,332 1,859,532 680,740 Capital grants and contributions 11,612 - - - Total business-type activities program revenues 6,298,673 8,041,266 8,523,179 7,713,844 Total primary government program revenues 12,506,647$ 16,095,602$ 18,660,180$ 17,816,354$ City of Crystal Changes in Net Position Accrual Basis of Accounting) Last Ten Fiscal Years unaudited) 8.2 129 Table 2 2018 2019 2020 2021 2022 2023 3,435,708$ 4,523,764$ 2,622,345$ 2,538,863$ 2,304,721$ 2,692,918$ 7,250,306 7,585,509 8,533,972 8,207,219 10,325,270 10,005,401 4,285,522 4,479,566 5,675,261 4,789,185 4,650,024 4,965,665 3,299,792 3,093,691 3,126,917 4,097,820 4,615,108 5,289,456 1,159,700 1,398,666 1,552,016 1,748,467 1,481,719 1,628,317 518,975 462,218 340,097 307,840 255,755 229,583 19,950,003 21,543,414 21,850,608 21,689,394 23,632,597 24,811,340 3,105,611$ 3,094,824$ 3,362,825$ 3,718,004$ 3,817,096$ 3,989,117$ 2,486,143 2,164,837 2,317,049 2,742,022 2,668,640 2,728,239 759,180 1,539,162 725,016 817,652 937,050 930,995 152,301 151,732 194,991 180,314 205,757 208,389 335,310 334,947 344,747 344,702 380,318 465,835 6,838,545 7,285,502 6,944,628 7,802,694 8,008,861 8,322,575 26,788,548$ 28,828,916$ 28,795,236$ 29,492,088$ 31,641,458$ 33,133,915$ 243,710$ 177,914$ 181,700$ 232,472$ 251,089$ 296,926$ 346,501 318,706 204,252 174,439 597,493 289,308 541,486 552,388 154,555 437,656 518,047 599,193 1,255,396 1,169,663 651,925 898,035 832,792 1,108,662 699,638 761,960 887,111 963,527 890,737 1,946,055 2,337,789 2,146,495 1,763,000 1,670,868 8,553,139 2,578,089 5,424,520 5,127,126 3,842,543 4,376,997 11,643,297 6,818,233 3,265,849 3,707,733 4,442,177 5,060,454 5,032,917 5,543,477 2,578,065 2,446,851 2,679,871 3,112,281 3,347,460 3,564,069 1,174,131 1,226,403 1,271,999 1,309,810 1,365,594 1,395,139 195,324 194,950 193,029 194,435 195,553 212,369 340,410 342,336 348,287 365,448 386,375 477,324 547,760 2,560,212 240,825 202,760 563,599 803,278 105,750 49,395 7,801 5,761 8,101,539 10,478,485 9,281,938 10,294,583 10,899,299 12,001,417 13,526,059$ 15,605,611$ 13,124,481$ 14,671,580$ 22,542,596$ 18,819,650$ 8.2 130 2014 2015 2016 2017 Net (Expense) Revenue Governmental activities (12,190,233)(10,821,805)$ (11,783,408)$ (9,920,197)$ Business-type activities (717,541)554,792 1,922,761 1,290,534 Total primary government net expense (12,907,774)$ (10,267,013)$ (9,860,647)$ (8,629,663)$ General Revenues and Other Changes in Net Position Governmental activities Property taxes 9,621,212$ 9,670,252$ 9,955,391$ 10,469,019$ Grants and contributions not restricted to specific programs 1,664,043 1,701,220 1,712,591 1,753,898 Unrestricted investment earnings 350,648 303,263 445,296 302,344 Gain on disposition of capital assets 48,900 27,706 82,795 91,114 Transfers 273,735 (1,577,880)53,732 (2,048,142) Total governmental activities 11,958,538 10,124,561 12,249,805 10,568,233 Business-type activities Unrestricted investment earnings 66,473 53,517 47,353 42,244 Gain on disposition of capital assets - 12,500 6,441 9,964 Transfers (273,735)1,577,880 (53,732)2,048,142 Total business-type activities (207,262)1,643,897 62 2,100,350 Total primary government 11,751,276$ 11,768,458$ 12,249,867$ 12,668,583$ Change in Net Position Governmental activities (231,695)$ ( 697,244)$ 466,397$ 648,036$ Business-type activities (924,803)2,198,689 1,922,823 3,390,884 Total primary government (1,156,498)$ 1,501,445$ 2,389,220$ 4,038,920$ City of Crystal Changes in Net Position Accrual Basis of Accounting) Last Ten Fiscal Years unaudited) 8.2 131 Continued) Table 2 2018 2019 2020 2021 2022 2023 14,525,483)$ (16,416,288)$ (18,008,065)$ ( 17,312,397)$ (11,989,300)$ ( 17,993,107)$ 1,262,994 3,192,983 2,337,310 2,491,889 2,890,438 3,678,842 13,262,489)$ (13,223,305)$ (15,670,755)$ ( 14,820,508)$ (9,098,862)$ ( 14,314,265)$ 11,193,252$ 11,619,642 12,699,857 13,437,858 14,175,783 15,387,668 1,850,588 2,038,452 3,751,256 1,624,369 1,356,242 1,343,863 542,106 969,103 1,217,350 (163,476)(605,649) 1,134,272 231,971 146,270 119,077 92,038 110,986 687 502,049 4,154,441 474,257 479,501 505,214 671,296 14,319,966 18,927,908 18,261,797 15,470,290 15,542,576 18,537,786 98,002 148,899 255,079 ( 21,648) (135,363) 246,444 502,049)(4,154,441)(474,257)( 479,501)(505,214)( 671,296) 404,047)(4,005,542)(219,178)( 501,149)(640,577)( 424,852) 13,915,919$ 14,922,366$ 18,042,619$ 14,969,141$ 14,901,999$ 18,112,934$ 205,517)$ 2,511,620$ 253,732$ ( 1,842,107)$ 3,553,276$ 544,679$ 858,947 (812,559)#2,118,132 # 1,990,740 #2,249,861 3,253,990 653,430$ 1,699,061$ 2,371,864$ 148,633$ 5,803,137$ 3,798,669$ 8.2 132 2014 2015 2016 2017 General Fund Nonspendable Inventory -$ 27,488$ 15,519$ 19,169$ Prepaid items - - - - Committed Compensated absences 801, 697 782,627 817, 760 753,962 Unassigned 6,594, 097 6,382,810 6,220, 496 6,119,325 Total general fund 7,395,794$ 7,192,925$ 7,053,775$ 6,892,456$ All Other Governmental Funds Nonspendable Prepaid items 8,450$ -$ -$ -$ Restricted Housing and redevelopment assistance 1,655,414 1,703,927 1,783,870 1,768,695 Murl revolving fund 39,519 - - - Debt service 5,528, 971 6,437,512 5,750, 342 5,312,296 Public Safety - - - - 10% lawful gambling contribution 445 - - - DWI-related enforcement, training and education 55,399 40,626 32,375 27,824 Committed Housing and redevelopment assistance 3,974, 329 4,247,836 4,215, 316 3,846,024 Capital outlay - city wide 8,632, 632 8,498,360 8,357, 889 8,211,949 Capital outlay - replace and renovation of city bldgs.6,964, 198 - 105, 509 644,615 Capital outlay - street reconstruction 2,347,934 2,074,645 2,132,454 2,718,992 Capital outlay - police equipment 3,122,050 3,126,443 3,108,331 2,870,691 Capital outlay - cable TV equipment - 35,487 72,531 111,450 Capital outlay - fire equipment 643, 352 648,635 585, 905 212,683 Capital outlay - street maintenance 1,251, 683 1,420,778 1,590, 262 1,696,974 Capital outlay - fleet - - - - Capital outlay - information technology - - - - Capital outlay - park improvement - - - - Assigned Police department purposes 14,873 22,453 40,631 40,631 Park and recreation department purposes 24,686 23,684 20,729 20,729 Other purposes 8,060 9,042 7,755 12,564 Unassigned - (626,968) - - Total all other governmental funds 34,271, 995$ 27,662,460$ 27,803, 899$ 27,496,117$ 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) 8.2 133 Table 3 2018 2019 2020 2021 2022 2023 23,941$ 71,541$ 9,012$ 33,274$ 35,338$ 25,942$ 17,386 13,178 - 19,167 774,914 801,503 926, 030 957,521 917,956 924,404 6,181,591 6,123,392 7,405, 222 6,765,565 5,558,799 5,160,502 6,980,446$ 6,996,436$ 8,357, 650$ 7,769,538$ 6,512,093$ 6,130,015$ 1,327,159 1,180,909 1,038, 382 797,070 885,615 983,179 6,079,365 6,080,972 4,506, 534 4,338,861 4,051,763 3,667,082 1,009,982 58,991 86,870 73,496 132,231 88,055 110,581 3,931,334 2,443,836 2,438, 443 2,310,250 2,232,803 2,454,609 399,581 - - - - - 3,338,128 4,155,413 - - - - 5,672,092 6,778,918 6,803, 180 6,692,180 6,623,565 8,551,234 2,812,125 2,915,448 2,766, 889 2,820,165 2,753,628 2,827,300 152,917 195,363 238, 385 271,449 299,790 343,481 1,932,904 - - - - - 2,790,279 2,850,100 - - - - 466,596 564,839 - - - - 1,405,831 1,373, 663 1,240,397 1,359,410 265,644 40,631 71,427 74,614 57,434 99,634 102,685 20,729 - - - - - 12,564 - - - - - 29,035,395$ 28,729,926$ 19,313, 586$ 18,660,037$ 18,394,263$ 20,315,777$ 8.2 134 2014 2015 2016 2017 Revenues Property taxes 9,621,688$ 9,664,690$ 9,966,978$ 10,569,176$ Special assessments 2,873,099 3,328,989 3,950,081 4,468,266 Licenses, permits and inspections 924,967 808,695 773,479 785,451 Intergovernmental 2,930,382 3,175,821 3,062,273 3,133,642 Charges for sales and/or services 1,718,581 932,081 913,329 859,087 Administrative services provided to other funds - - - - Fines and forfeitures 405,546 355,566 322,009 359,917 Interest 331,758 291,400 245,865 259,657 Net increase (decrease) in fair value of investments 9,442 4,825 59,015 - Miscellaneous 111,496 409,295 1,046,909 354,302 Total revenues 18,926,959 18,971,362 20,339,938 20,789,498 Expenditures General government 2,198,872 2,289,245 2,517,924 2,639,028 Public safety 5,692,868 5,841,029 6,143,480 6,589,235 Public works 2,246,292 1,327,418 2,077,476 1,455,074 Parks and recreation 2,081,162 2,229,890 2,240,202 2,379,532 Community development 1,252,952 1,197,652 1,108,920 1,279,318 Capital outlay 7,209,039 14,022,519 7,124,563 9,829,622 Debt service - Principal 2,275,042 1,379,264 2,481,027 1,968,341 Interest and other fees 554,063 536,202 591,516 551,467 Total expenditures 23,510,290 28,823,219 24,285,108 26,691,617 Excess (Deficiency) of Revenues Over (Under) Expenditures (4,583,331)(9,851,857)(3,945,170)(5,902,119) Other Financing Sources (Uses) Issuance of bonds - 2,550,000 3,330,000 4,665,000 Premium on bonds issued - 92,777 99,664 273,843 Proceeds from sale of property and equipment 82,547 33,224 122,359 91,114 Lease Issuance Transfers in 2,347,933 931,436 673,132 1,944,997 Transfers out (1,898,783)(551,084)(286,146)(1,541,936) Total other financing sources (uses)531,697 3,056,353 3,939,009 5,433,018 Net Change in Fund Balances (4,051,634)$ (6,795,504)$ (6,161)$ (469,101)$ Debt service as a percentage of noncapital expenditures 17%13%18%15% City of Crystal Changes in Fund Balances of Governmental Funds Modified Accrual Basis of Accounting) Last Ten Fiscal Years unaudited) 8.2 135 Table 4 2018 2019 2020 2021 2022 2023 11,231,206$ 11,600,365$ 12,660,825$ 13,457,410$ 14,159,906$ 15,344,115$ 3,452,454 2,746,810 2,460,519 2,321,804 1,908,984 1,662,632 740,192 835,712 676,382 874,706 850,953 999,910 3,641,377 3,964,052 4,903,347 2,881,597 2,644,515 4,574,688 935,558 886,368 332,551 709,189 854,019 1,008,224 251,732 296,200 196,239 169,270 188,836 216,028 511,542 949,195 930,168 (131,068) ( 562,807) 867,738 595,766 406,221 107,560 357,923 175,903 144,942 21,359,827 21,684,923 22,267,591 20,640,831 20,220,309 24,818,277 2,580,042 2,479,514 2,246,838 2,251,477 2,484,535 2,353,255 7,028,892 7,412,980 8,324,408 8,509,527 9,101,585 9,387,685 1,391,736 1,411,680 1,549,456 1,761,363 1,873,638 1,948,482 2,546,771 2,792,663 2,913,882 3,512,059 3,872,309 4,202,238 1,548,967 1,112,371 1,303,613 1,542,587 1,399,679 1,526,431 3,255,645 4,651,350 3,139,828 2,812,386 2,129,087 2,895,070 1,587,269 1,915,357 3,350,275 1,652,500 1,413,605 1,432,238 548,573 508,618 425,562 353,532 309,570 284,258 20,487,895 22,284,533 23,253,862 22,395,431 22,584,008 24,029,657 871,932 (599,610) ( 986,271) (1,754,600) (2,363,699) 788,620 253,287 146,270 27,240 33,438 27,249 29,494 308,017 70,790 10,580,478 2,015,785 474,257 520,329 505,214 671,433 10,078,429) (1,556,924) - (40,828) - (20,901) 755,336 605,131 501,497 512,939 840,480 750,816 1,627,268$ 5,521$ ( 484,774)$ (1,241,661)$ ( 1,523,219)$ 1,539,436$ 12% 14% 19% 10% 8% 8% 8.2 136 Table 5 Total Real Property Total Direct Estimated Fiscal Commercial Personal Taxable Tax Actual Year Residential Apartments Industrial Property Market Value Rate Market Value 2014 864,287,852$ 101,813,000$ 156,849,300$ 12,661,700$ 1,135,611,852$ 56.015 1,440,635,800$ 78.83 2015 1,020,212,713 104,420,800 155,744,300 13,315,900 1,293,693,713 50.498 1,484,886,100 87.12 2016 1,153,327,871 154,241,560 159,609,700 13,517,900 1,480,697,031 53.207 1,620,984,300 91.35 2017 1,280,234,014 167,116,280 174,031,700 15,766,500 1,637,148,494 50.360 1,782,801,500 91.83 2018 1,405,036,164 178,406,933 180,514,900 15,983,900 1,779,941,897 50.416 1,919,021,800 92.75 2019 1,542,818,000 208,112,000 200,365,100 16,559,700 1,967, 854,800 48.771 2,122, 999,500 92.69 2020 1,618,265,550 227,997,580 225,005,300 16,834,900 2,088, 103,330 47.855 2,213, 904,900 94.32 2021 1,850,329,404 204,798,000 220,666,200 11,918,600 2,287, 712,204 49.507 2,402, 167,100 95.24 2022 2,151,372,271 222,797,000 229,864,100 13,593,500 2,617, 626,871 47.373 2,708, 020,400 96.66 2023 2,265,554,966 228,566,000 261,578,100 14,629,300 2,770, 328,366 47.407 2,852, 748,600 97.11 Source: Hennepin County report Market Value and Tax Capacity Growth By City. Total Taxable City of Crystal Taxable and Estimated Market Values of Taxable Property Last Ten Fiscal Years unaudited) Market Value as a Percent of Estimated Actual Market Value 8.2 137 Property Tax Rates - Direct and Overlapping Governments Last Ten Fiscal Years unaudited) Table 6 Total Total Crystal Robbinsdale City Tax Debt Service ISD #281 Total Basic G. O.Direct Robbinsdale Hennepin Special Capacity Market Market Overlapping Rate HRA Debt Service Tax Rate ISD #281 County Districts *Tax Rate Value Rate Value Rate Tax Rate 51.268 1.241 3.506 56.015 34.777 49.959 10.561 151.312 0.016 0.303 151.631 49.100 1.398 0.000 50.498 33.226 46.398 9.785 139.907 0.015 0.285 140.207 51.831 1.376 0.000 53.207 33.833 45.356 9.530 141.926 0.014 0.282 142. 222 48.949 1.411 0.000 50.360 31.612 44.087 9.319 135.378 0.013 0.250 135. 641 49.168 1.248 0.000 50.416 31.957 42.808 8.973 134.154 0.000 0.234 134.388 47.553 1.218 0.000 48.771 29.909 41.861 8.550 129.091 0.000 0.266 129.357 46.785 1.070 0.000 47.855 26.447 41.084 8.219 123.605 0.000 0.250 123.855 48.371 1.136 0.000 49.507 25.529 38.210 7.813 121.059 0.000 0.241 121. 300 46.317 1.056 0.000 47.373 26.507 38.535 7.849 120.264 0.000 0.216 120. 480 46.429 0.978 0.000 47.407 24.092 34.542 7.947 113.988 0.000 0.218 114.206 Note: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 County 2023 Fiscal City Direct Tax Rates City of Crystal 2022 2021 2020 2019 2018 2017 2016 2015 2014 Year 8.2 138 Table 7 Tax Tax Type of Property Capacity *Rank Capacity *Rank CNTRL CRYSTAL VILL LLC ETAL Apartments 669,001$ 1 2.17 % MN-CRYSTAL CENTER-HA LLC Shopping Center 507,250 2 1.65 MINNESOTA SENIOR LIVING LLC Apartments 336,325 3 1.09 CEDARWOOD INVESTORS LLC Apartments 274,175 4 0.89 SMITH-STURM INV WINNETKA VLG Apartments 241,363 5 0.78 130,888 5 1.01 % WINPARK ONE TWO LLC Industrial 240,610 6 0.78 126,250 7 0.97 CRYSTAL GALLERY DEVELOPERS Shopping Center 208,650 7 0.68 CRYSTAL LEASED HSG ASCTS I Housing 171,781 8 0.56 TARGET CORPORATION Department Store 170,030 9 0.55 188,250 2 1.45 CRYSTAL MEDICAL BUILDING LLC Office/Clinic 167,850 10 0.74 105,425 9 0.81 CRYSTAL SHOPPING CTR ASSOC Shopping Center 389,250 1 3.00 CRYSTAL VILLAGE APARMT LLC Apartments 171,301 3 1.32 SUPERVALU INC Grocery Store 161,250 4 1.24 CALIBRE CHASE PTNRS LTD PTN Apartments 128,750 6 0.99 BASS LK RD RETAIL ASSOC LLP Office/Warehouse 109,770 8 0.85 INDUSTRIAL EQUITIES GRP LLC Apartments 93,090 10 0.72 2,987,035$ 9.69 %1,604,224$ 12.38 % Total City of Crystal Tax Capacity 30,835,307$ 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 County *No updated information received for current year. Capacity 2023 2014 City of Crystal Principal Property Taxpayers Current Year and Nine Years Ago unaudited) Percentage of Total Tax Capacity Percentage of Total Tax Taxpayer 8.2 139 Table 8 Total Delinquent Current Percentage Delinquent Total Collections Outstanding Taxes as Fiscal Tax Tax of Levy Tax Tax as a % of Delinquent a % of Year Levy Collections Collected Collections Collections Tax Levy Taxes Tax Levy 2014 9,217,153$ 9,144,399$ 99.21 72,754$ 9,217,153$ 100.00 -$ 0.00 2015 9,288,837 9,217,089 99.23 65,983 9,283,072 99.91 5,765 0.09 2016 9,954,054 9,871,608 99.17 79,990 9,951,598 99.96 2,456 0.04 2017 10,606,338 10,538,868 99.36 59,692 10,598,560 99.88 7,778 0.12 2018 11,172,069 11,093,852 99.30 63,214 11,157,066 99.80 15,003 0.20 2019 11,343,132 11,272,127 99.37 47,044 11,319,171 99.50 23,961 0.50 2020 12,367,416 12,257,756 99.11 20,970 12,278,726 99.28 88,690 0.01 2021 13,137,587 13,035,188 99.22 33,329 13,068,517 99.47 69,070 0.01 2022 13,829,480 13,733,739 99.31 39,047 13,772,786 99.59 56,694 0.00 2023 15,142,880 14,959,671 98.79 138,708 15,098,379 99.71 44,501 0.00 Source: City of Crystal Finance Department records City of Crystal Property Tax Levies and Collections Last Ten Fiscal Years unaudited) 8.2 140 2014 2015 2016 2017 Estimated market value - amounts 1,440,636$ 1,484,886$ 1,620,984$ 1,782,802$ expressed in thousands Debt limit (3% of estimated market value)43,219,000$ 44,547,000$ 48,630,000$ 53,484,000$ Less debt applicable to debt limit Total bonded debt 13,740,062 15,099,795 15,900,940 19,068,514 Deductions - Special assessment bonds 12,559,803 14,083,544 15,050,000 18,600,000 Total debt applicable to debt limit 1,180,259 1,016,251 850,940 468,514 Legal debt margin 42,038,741$ 43,530,749$ 47,779,060$ 53,015,486$ Total debt applicable to the debt limit as a percentage of the debt limit 2.7%2.3%1.7%0.9% Source: City of Crystal Finance Department records City of Crystal Legal Debt Margin Information Last Ten Fiscal Years unaudited) 8.2 141 Table 9 2018 2019 2020 2021 2022 2023 1,919,022$ 2,123,000$ 2,213,905$ 2,402,167$ 2,708, 020$ 2,852,749$ 57,571,000$ 63,690,000$ 66,417,000$ 72,065,000$ 81,241,000$ 85,582,000$ 17,700, 339 15,970,984 12,882,262 11,409,757 10,000,107 8,609,793 17,260, 000 15,560,000 12,470,000 11,060,000 9,690,000 8,340,000 440,339 410,984 412,262 349,757 310, 107 269,793 57,130,661$ 63,279,016$ 66,004,738$ 71,715,243$ 80,930, 893$ 85,312,207$ 0.8%0.6%0.6%0.5%0.4%0.3% 8.2 142 City of Crystal Last Ten Fiscal Years unaudited) Table 10 G.O. Special Total G.O.Assessment Lease Primary Per Bonds Bonds Liability Government Capita 1,180,259$ 12,559,803$ -$ 13,740,062$ 0.95 0.96 612$ 1,016,251 14,083,544 - 15,099,795 1.02 1.01 661 850,940 15,281,867 - 16,132,807 1.00 1.05 706 19,068,514 - 19,068,514 1.07 1.17 832 17,700,339 - 17,700,339 0.92 1.02 760 15,970,984 - 15,970,984 0.75 0.85 649 12,852,362 - 12,852,362 0.58 0.72 553 11,409,757 - 11,409,757 0.47 0.62 494 10,000,107 249,834 10,249,941 0.38 0.50 450 8,609,793 238,386 8,848,179 0.31 0.43 388 Sources: Outstanding Debt - City of Crystal Finance Department Records Taxable Market Value - Hennepin County Assessor Department Personal income - U.S. Department of Commerce, Bureau of Economic Analysis Population - U.S. Census Bureau for census years and estimates by Metropolitan Council for non-census years Personal Income Fiscal Year Percentage of Estimated Market Value Ratios of Outstanding Debt by Type Governmental Activities 2022 2021 2020 2019 2018 2017 2016 2015 2014 Percentage of 2023 8.2 143 Table 11 Less Amount Restricted G.O.for Debt Per Bonds Service Total Capita 1,180,259$ 455,740$ 724,519$ 0.05 32.00 1,016,251 456,775 559,476 0.04 24.94 298,069 ( 298,069) -0.02 -13.04 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 Note: Details regarding the city's outstanding debt can be found in the notes to the financial statements. Sources: The amount of G.O. bonds is from Table 9 - Legal Debt Margin Information The amount Restricted for Debt Service is the sum of fund balances for applicable issues Property value data is from Table 5 - Taxable and Estimated Market Values Of Taxable Property Population data is from Table 13 - Demographic and Economic Statistics 2021 2022 Percentage of Taxable Market Value of Property 2023 Ratios of General Bonded Debt Outstanding City of Crystal Last Ten Fiscal Years unaudited) Fiscal Year 2014 2015 2016 2017 2018 2019 2020 8.2 144 City of Crystal Direct and Overlapping Governmental Activities Debt As of December 31, 2023 unaudited) Table 12 Net General Obligation Amount Bonded Debt Applicable To Outstanding Government Direct - City of Crystal 8,848,179$ 100.00 %8,848,179$ Overlapping - Robbinsdale ISD #281 191,267 19.64 37,565 Hennepin County 1,056,334,526 1.09 11,514,046 Hennepin Suburban Park District 49,655,074 1.50 744,826 Hennepin Regional RR Authority 80,622,443 1.09 878,785 Metropolitan Council / Transit 89,723,130 0.54 484,505 Total Overlapping 1,276,526,440 13,659,727 Total 1,284,866,440$ 21,999,727$ 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 Jurisdiction 8.2 145 Table 13 Per Capita Total City District-Wide Personal Personal School Population Income Income Enrollment 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 89,851 2,047,794,141 11,362 2.8 22,791 89,851 2,047,794,141 11,010 3.0 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. 2021 2022 Unemployment Rate 2023 Year 2014 2015 2016 2017 2018 2019 2020 City of Crystal Demographic and Economic Statistics Last Ten Fiscal Years unaudited) Fiscal 8.2 146 Table 14 Number of Number of 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 37 10 0.93 46 10 1.10 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 No updated information available for current year. Data is from 2021 & 2011 Percentage of Total City EmploymentEmployer 2023 2014 City of Crystal Prinicpal Employers Current Year and Nine Years Ago unaudited) Percentage of Total City Employment 8.2 147 Table 15 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 General Government 11 11 11 9 9 11 11 11 11 12 Public Safety Police Officers 27 30 30 33 33 34 34 34 35 34 Civilians 5 4 4 5 5 8 8 9 6 4 Public Works Engineering 3 3 3 3 3 3 3 3 4 2 Maintenance 8 8 8 8 8 11 11 11 8 8 Parks and Recreation Park maintenance 6 6 6 6 6 7 7 7 7 7 Recreation 5 5 6 5 5 8 8 7 6 10 Community Development 7 7 6 7 7 7 7 6 6 7 Utilities Water/Sanitary Sewer/Storm Drainage 9 9 10 10 10 9 9 10 9 9 81 83 84 86 86 98 98 98 92 93 Source: City of Crystal Finance Department records Function City of Crystal Full-Time City Government Employees By Function Last Ten Fiscal Years unaudited) 8.2 148 2014 2015 2016 2017 2018 General Government Administration Employee recruitments 22 26 17 20 15 Licenses issued 1,333 1,294 1,323 954 840 Public Safety Police Calls for service 34,362 31,077 30,860 27,296 32,863 Citations issued 6,230 5,798 5,771 4,710 4,465 Criminal cases investigated 1,172 1,208 1,372 1,362 1,525 Total arrests 767 859 926 826 906 Animal control incidents 447 457 509 391 303 Dog licenses issued 258 298 278 223 195 Fire (West Metro Fire-Rescue District) Calls for service 1,663 1,514 1,573 1,922 1,856 Inspections, plan reviews and consultations 808 824 746 880 691 Public Works Miles of streets sealcoated ***0 0 Miles of streets reconstructed 0 5 5 5 0 Phase of 16-phase street project Phase 14 Phase 15 Phase 16 Parks and Recreation Recreation program participants 13,847 12,149 11,082 11,623 13,615 No. of teams in team sports 212 216 249 228 246 No. of participants in special events 5,425 4,542 5,382 4,690 6,292 No. of rental groups 218 201 ****** No. of facility rentals ****711 1,022 970 Community Center permits 680 671 862 957 776 Pool attendance 28,042 28,092 26,769 27,098 30,350 Community Development Permit inspections 2,779 2,771 2,430 2,835 2,704 Code enforcement incidents 1,482 1,539 1,514 1,405 1,317 Rental housing - no. of licensed units 2,859 2,548 2,915 2,831 2,715 Point of sale inspections/re-inspections 442 404 13 13 *** Planning Commission applications 12 6 12 11 13 Utilities Water system Average residential consumption million gallons / day)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 City of Crystal Operating Indicators By Function Last Ten Fiscal Years unaudited) Function 8.2 149 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 2 0 0 0 840 781 890 959 428 675 1,260 1,327 0 0 0 4 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 8 6 7 10 1.40 Mg/d 1.21 Mg/d 1.21 Mg/d 1.21 Mg/d 8.2 150 2014 2015 2016 2017 2018 Public Safety Police Number of stations 1 1 1 1 1 Public Works Street maintenance Miles of city street 91 91 90 90 90 Parks and Recreation Recreation Number of park acres 253 253 263 263 261 Number of parks 28 28 27 27 26 Number of parks with playground apparatus 20 20 19 19 19 Number of tennis courts 12 12 7 7 7 Number of outdoor pickleball courts 0 0 0 0 0 Hockey 4 4 4 3 3 General use 3 3 3 2 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 7 7 7 7 5 Non-reservable (neighborhood park backstop)15 10 7 7 7 Number of full-size soccer fields 2 2 2 2 2 Community CenterNumberofskateboard parks 1 1 1 1 1 Waterslide / swimming poolNumberofcenters 1 1 1 1 1 Number of facilities 1 1 1 1 1 Utilities Water system Miles of water main (owned by city)90 90 90 93 93 Number of service connections 7,817 7,830 7,841 7,841 7,849 Number of fire hydrants 821 823 823 797 797 Sewer system Miles of sanitary sewer 87 87 87 87 87 Number of service connections 7,837 7,845 7,855 7,855 7,863 Number of lift stations 7 7 7 7 7 Storm drainage system Miles of storm sewer 76 76 77 65 65 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 Function City of Crystal Capital Asset Statistics by Function Last Ten Fiscal Years unaudited) 8.2 151 Table 17 2019 2020 2021 2022 2023 11111 88 91 91 91 91 261 261 261 261 261 26 26 26 26 26 19 19 19 26 26 76663 006614 34444 24222 22222 33333 55555 74000 11111 11111 11111 11111 93 93 93 93 64 7,856 8,010 8,010 8,010 8,270 859 798 798 798 779 87 87 87 87 87 7,863 8,129 8,129 8,129 8,895 77777 65 66 66 66 64 11111 8.2 City of Crystal Hennepin County, Minnesota Communications Letter December 31, 2023 8.2 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 8.2 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, 2023, 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. 8.2 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, 2023. 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 23, 2024, on such statements. The purpose of this communication, which is an integral part of our audit, is to describe for the Members of the City Council and management and others within the City and state oversight agencies the scope of our testing of internal control and the results of that testing. Accordingly, this communication is not intended to be and should not be used for any other purpose. Minneapolis, Minnesota May 23, 2024 8.2 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 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, 2023. Professional standards require that we advise you of the following matters related to our audit. 8.2 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, 2023. 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. 8.2 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. Pension Valuation – Net Pension Liability, Deferred Outflows of Resources Related to Pensions, and Deferred Inflows of Resources Related to Pensions are generally material to the financial statements and involve significant estimates. OPEB Valuation – Total OPEB Liability, Deferred Outflows of Resources Related to OPEB, and Deferred Inflows of Resources Related to OPEB are generally material to the financial statements and involve significant estimates. 8.2 City of Crystal Required Communication 6 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 the basic financial statements. There have been no initial selection of accounting policies and no changes to significant accounting policies or their application during 2023. 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: 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. 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. 8.2 City of Crystal Required Communication 7 Uncorrected and Corrected Misstatements (Continued) 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. The following summarizes uncorrected financial statement misstatements whose effects in the current and prior periods, as determined by management, are immaterial, both individually and in the aggregate, to the basic financial statements taken as a whole. Uncorrected misstatements or matters underlying those uncorrected misstatements could potentially cause future-period financial statements to be materially misstated, even though the uncorrected misstatements are immaterial to the financial statements currently under audit. Subscription based information technology assets and liabilities in accordance with GASB 96 are understated. 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. 8.2 City of Crystal Required Communication 8 Other Information Included in Annual Reports (Continued) We applied certain limited procedures to the RSI that supplements the basic financial statements. Our procedures consisted of inquiries of management regarding the methods of preparing the information and comparing the information for consistency with management's responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We did not audit the RSI and do not express an opinion or provide any assurance on the RSI. With respect to the supplementary information accompanying the financial statements, we made certain inquiries of management and evaluated the form, content and methods of preparing the information to determine that the information complies with accounting principles generally accepted in the United States of America, the method of preparing it has not changed from the prior period, and the information is appropriate and complete in relation to our audit of the financial statements. We compared and reconciled the supplementary information to the underlying accounting records used to prepare the 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. 8.2 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, 2023, the General Fund balance was $6,130,015, a decrease of 5.9%, or $382,078, from the 2022 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. 6,123,392 $7,405,222 $6,765,565 $5,558,799 $5,160,502 801,503 $926,030 $957,521 $917,956 $924,404 71,541 $26,398 $46,452 $35,338 $45,109 1,000,000 2,000,000 3,000,000 4,000,000 5,000,000 6,000,000 7,000,000 8,000,000 9,000,000 2019 2020 2021 2022 2023 Unassigned Committed for Compensated Absences Nonspendable 8.2 City of Crystal Financial Analysis 10 General Fund (Continued) The City adopted a budget for 2024 which called for an increase in expenditures of 13.5%, or 2,444, 702 compared to the 2023 budget. Fund balance at December 31, 2023, as a percentage of the subsequent budget is shown in the chart below. It is the City's policy to maintain unassigned fund balance for cash flow reserves equal to 45% of the General Fund budget for the subsequent year. The City has not been in compliance with it’s fund balance policy for the five years presented. 41% 44% 40% 31% 25% 47% 50% 45% 36% 30% 0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 50% 55% 2019 2020 2021 2022 2023 Fund Balance as a Percentage of Budget Unassigned Fund Balance Total Fund Balance 8.2 City of Crystal Financial Analysis 11 General Fund (Continued) For the 2023 operating year, the City Council approved a balanced budget anticipating no change in fund balance. Revenues were over budget by 0.7% and expenditures were 2.8% over budget. General Fund Budget Actual Variance Percentage Revenue Taxes and assessments 13,769,498$ 13,459,619$ ( 309,879)$ -2.3% Intergovernmental 1,655,044 1,784,263 129,219 7.8% Licenses, permits, fines, and charges for services 1,893, 585 2,055,188 161,603 8.5% Other 148, 550 305,029 156,479 105.3% Total revenues 17,466, 677 17,604, 099 137,422 0.8% Expenditures General government 2,573,075 2,304,638 (268,437) -10.4% Public safety 9,167,039 9,362,715 195,676 2.1% Public works 1,893, 784 1,948,482 54,698 2.9% Parks and recreation 3,680, 273 4,198,877 518,604 14.1% Community development 823, 801 822,685 (1,116) -0.1% Total expenditures 18,137, 972 18,637, 397 499,425 2.8% Excess of revenues under expenditures (671,295) (1,033,298) (362,003) 53.9% Net other financing sources (uses) 671, 295 651,220 (20,075) -3.0% Change in fund balance - (382,078) (382,078) N/A Beginning fund balance 6,512,093 6,512,093 - N/A Ending fund balance 6,512,093$ 6,130,015$ (382,078)$ -5.9% General fund revenues in total came in $137, 422 over budgeted amounts. The largest budget variance for revenue was in the taxes and assessments category, which was $309,879 under budget based on collections coming in less than anticipated. This variance was offset by the intergovernmental category being over budget by $129,219 as the City received funding over anticipated amounts for police and fire state aids along with grants from federal sources, other revenue being over budget by $156, 479 because of strong investment returns, and licenses, permits, fines, and charges for services being over budget by $161,603 due in part to increased building and mechanical permits. Total general fund expenditures were $499,425 over budget for 2023. Parks and recreation expenditures were $518, 604 over budget due in large part to utility costs and tree removal services coming in higher than budgeted. Public safety was $195,676 over budget related to higher than anticipated expenditures for benefits, vehicle repairs and maintenance, and operating supplies. Other categories came in under budgeted amounts or had minor variances in comparison to budgeted amounts. A planned transfer of $391,000 from the buildings fund will offset the utility costs. This transfer is scheduled to take place in 2024. Management has planned for the building fund to absorb utility costs projected in the long-term plan but for transparency sake for individual departments, the cost will remain in each cost center of the General Fund and be evaluated each year to determine the amount of transfer from the building fund to the General Fund after year-end. The negative change in fund balance for the General Fund of ($382, 078) for 2023 would be offset with this transfer in 2024 resulting in reserves remaining consistent to prior year. 8.2 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 17,604, 099 in 2023 increased from $16,205,257 in 2022. The largest increase of $902,877 occurred in property taxes due to an increase in the amount of property tax levied for the General Fund for the year. The other revenue category increased by $493, 392 as a result of investment earnings being up in 2023 compared to 2022. 2019 2020 2021 2022 2023 Other $493, 544 $454, 977 $229,628 $84,294 $577,686 Charges for Services 808,321 332,551 646,189 854,019 850,674 Licenses and Permits 835,712 676,382 874,706 850,953 999,910 Intergovernmental 1,907,763 3,637, 704 1,797, 751 1,927, 302 1, 784,263 Property Taxes 9,690,226 11,407,848 12,052,301 12,488,689 13,391,566 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 8.2 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 2022 and 2023. General Government 12% Public Safety 50% Public Works 11% Parks and Recreation 23% Community Development 4% 2023 General Fund Expenditures General Government 13% Public Safety 51%Public Works 10% Parks and Recreation 22% Community Development 4% 2022 General Fund Expenditures 8.2 City of Crystal Financial Analysis 14 General Fund Expenditures (Continued) General Fund expenditures increased $651,718, or 3.6%, from the prior year. Parks and recreation expenditures increased $329, 610 due to increased salary and benefit expenditures, tree removal services, building internal service charges, repair and maintenance needs, and utility costs. Public safety expenditures increased $280, 096 with higher salary and benefit costs based on staffing along with additional internal technology internal service charges. Expenditures for general government decreased $120,213 with less salaries and benefits and professional services costs. 2019 2020 2021 2022 2023 Community Development $557,867 $670,574 $677,721 $735,304 $822,685 Parks and Recreation 2,668,952 2,895,125 3,506,923 3,869,267 4,198,877 Public Works 1,411,680 1,549,456 1,761,363 1,873,638 1,948,482 Public Safety 7,335,302 8,263,068 8,478, 737 9,082,619 9,362,715 General Government 2,234,884 2,244,492 2,243, 454 2,424,851 2,304,638 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 8.2 City of Crystal Financial Analysis 15 Water Enterprise Fund Activity for the City's Water Fund is shown below. Water operating revenues increased $517, 874 as a result of an increase in rates along with increased consumption. Operating expenses increased 173,221 compared to 2022 with noted increases for water charges in 2023. The Water Fund ended the year with an operating income of $1,838,765, which was an increase of $344,653 from 2022. Net income includes nonoperating revenues and expenses and was the highest in 2023 of the five years presented. 2019 2020 2021 2022 2023 Operating revenue $3,707,733 $4,442,177 $5,060,454 $5,307,608 $5,825,482 Operating expense 3,087,624 3,356,825 3,713,204 3,813,496 3,986,717 Net income with depreciation 828,645 1,382,389 1,532,831 1,700,832 2,334,056 Net income without depreciation 973,625 1,540,078 1,701,056 1,892,097 2,538,863 1,000,000 2,000,000 3,000,000 4,000,000 5,000,000 6,000,000 Water Utility 8.2 City of Crystal Financial Analysis 16 Sanitary Sewer Enterprise Fund Sewer operating revenues increased $264,220 due to increased billing rates. Operating expenses increased $59,599 due to increased charges associated with building internal service charges along with higher expenses for contractual services. The Sanitary Sewer Fund's operating income was 900,317 and increased $204,621 from 2022. Operating income has increased in each of the past five years. Net income includes nonoperating revenues and expenses and was the highest in 2023 of the five years presented. 2019 2020 2021 2022 2023 Operating revenue $2,446,851 $2,683,373 $3,114,385 $3,364,336 $3,628,556 Operating expense 2,164,837 2,317,049 2,742,022 2,668,640 2,728,239 Net income with depreciation 345,434 489,141 424,580 688,252 990,151 Net income without depreciation 450,495 622,484 577,443 865,078 1,214,004 500,000 1,000,000 1,500,000 2,000,000 2,500,000 3,000,000 3,500,000 4,000,000 Sanitary Sewer Utility 8.2 City of Crystal Financial Analysis 17 Storm Drainage and Street Lights Enterprise Funds 2019 2020 2021 2022 2023 Operating revenue $1,226,403 $1,272,283 $1,310,107 $1,365,681 $1,395,139 Operating expense 1,539,162 725,016 817,652 937,050 930,995 Net income with depreciation 2,092,174 683,715 480,414 387,410 528,955 Net income without depreciation 2,384,919 1,028,968 896,206 850,096 1,030,781 500,000 1,000,000 1,500,000 2,000,000 2,500,000 Storm Drainage Utility 2019 2020 2021 2022 2023 Operating revenue $194,950 $193,029 $194,537 $195,555 $212,369 Operating expense 151,732 194,991 180,314 205,757 208,389 Net income with depreciation 19,912 28,206 12,557 (25,022)48,914 Net income without depreciation 52,129 60,562 45,107 7,527 81,654 50,000) 50,000 100, 000 150, 000 200, 000 250,000 Street Lights Utility 8.2 City of Crystal Financial Analysis 18 Per Capita Revenues and Expenditures Below is a chart of the per capita trends in selected revenue and expenditure line items. In 2023, the intergovernmental revenue per capita increased due to an increase in municipal state aid for streets and a new public safety aid in 2023. The property taxes per capita for 2023 increased due to an increase in property tax levy. In addition, the decline in population also contributed to an increase in these ratios. Current and total expenditures per capita increased in 2023. 2022** 2023*** Intergovernmental revenues per capita 115$ 201$ Property taxes per capita * 598 658 Total revenue per capita 876 1,089 Expenditures per capita less debt service and capital) 811 852 Total expenditures per capita 978 1,054 Population 23,083 22,791 Property taxes exclude tax increments 2022 per capita data uses 2021 population forecast from Metropolitan Council 2023 per capital data uses 2022 population forecast from the Metropolitan Council Per Capita Trends City of Crystal 8.2 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 2019 through 2023. 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 2022 to 2023, by 3,407, 185, or 13.3%. 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 47.6% in 2019 to 46.4% in 2023. 19,967,681 22,411,718 23,617,970 25,586,218 $28,993,403 11,060,388 12,084,672 $ 12,837,587 $ 13,519,480 14,826,680 47.6% 46.8%48.4% 46.3%46.4% 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 30,000,000 2019 2020 2021 2022 2023 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 8.2 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: Implementation Guide No. 2021-1 – Amending Capitalization Requirements GASB has issued Implementation Guide No. 2021-1, amending previously issued guidance regarding capitalization requirements for capital assets that are significant in the aggregate but below the government's capitalization threshold individually. 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. Implementation Guide No. 2021-1 – Amending Capitalization Requirements Implementation Guide No. 2021-1, amended previously issued guidance contained in Implementation Guide No. 2015-1 regarding capitalization requirements for capital assets that are significant in the aggregate. Original guidance stated that it may be appropriate for a government to establish a capitalization policy that would require capitalization for certain types of assts with individual acquisition costs that are less than the threshold for an individual asset. Amended guidance states that a government should capitalize assets whose individual acquisition costs are less than the threshold for an individual asset if those assets in the aggregate are significant. Computers and classroom furniture are common examples of asset types that could be significant collectively. The amended guidance clarifies that if 100 computers costing $1,500 each totaling a $150,000 aggregate amount is significant, the government should capitalize the computers. Information provided above was obtained from www.gasb.org. 8.2 City of Crystal Emerging Issues 21 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. 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. 8.2 City of Crystal Emerging Issues 22 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. 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. 8.2 Memorandum DATE: May 30, 2024 TO: Mayor and City Council Adam Bell, City Manager FROM: Jodi Bursheim, Abdo Financial Solutions SUBJECT: 2025-2026 Budget Kick-off Meeting Background The City Council will officially kick off the 2025-2026 budget on June 4. The budget preview presentation is to provide an overview of the 2025-2026 budget process and to seek council feedback and/or direction to aid in the budget preparation. As in previous years, the presentation will begin with a short overview of the budget fundamentals, which will provide a refresher as we embark on the beginning of this year’s budget process. 8.3 4141 Douglas Drive North • Crystal, Minnesota 55422-1696 Tel: (763) 531-1000 • Fax: (763) 531-1188 • www.crystalmn.gov Memorandum DATE: May 30, 2024 TO: Mayor and City Council Adam R. Bell, City Manager FROM: John Elholm, Recreation Director Jason Minnick, Facilities Manager SUBJECT: Purchase and Installation of Amenities and Demolition of Certain Facilities at the Crystal Cove Aquatic Center The pool at the Crystal Cove Aquatic Center is scheduled for replacement in 2024. Total funding for the pool part of the project is $5,950,000. This includes $3,300,000 from the 2024 long term plan (buildings fund), $2,350,000 from a legislative appropriation and $300,000 from a Hennepin County Youth Activities Grant. The overall budget includes: •Design (approved):$ 262,300 •Construction contracts (approved):$ 2,501,700 •Amenities w/ custom platforms/structures (tonight)$ 830,413 •Amenities – traditional/catalog (estimate)$ 375,000 •Concrete footings/slabs for all amenities (estimate)$ 125,000 •Construction Management / General Conditions (estimate): $ 560,000 •Design Services, Permits, Plan Review, etc. (estimate)$ 335,000 •Contingencies (estimate)_$ 450,000 Total $ 5,439,413 The amenities with custom platforms can be purchased from Webber Recreational Design, Inc. through the Cooperative Purchasing Connection (CPC). The footings for all pool amenities will be installed by a concrete contractor under a separate agreement. The amenities proposed for purchase tonight are as follows: New 2M / 3M Diving Platform (CPC Item) $ 171,350.00 This item was part of the pool design reviewed by the park and recreation commission and city council last October. It will replace the diving boards that had been used at the pool. This cost includes equipment and installation. New Drop Slide and Structure (CPC Item) $ 146,500.40 This item was part of the pool design reviewed by the park and recreation commission and city council last October. It was initially proposed to be a reuse of the existing slide and structure (20 years old), however, the cost of re-engineering, paint and bringing the structure up to code will cost approximately $85,000; which would last up to 10 more years. Staff recommends using savings elsewhere in the project to replace the structure for approximately $61,000 more; so it will last 30 more years. 8.4 New Double Flume Slide and Structure (CPC Item) $ 428,250.00 This item was discussed as part of the pool design reviewed by the park and recreation commission and city council last October. These slides are 34 years old (built 1990). This is the expected life span of slides like this. Options were provided then to gel-coat the slides for $125,000 to get an additional 3 years or so out of the slides, or to demolish and replace them for a cost of $650,000. With an additional $300,000 grant received since then and savings elsewhere in the project, staff recommends replacing the slides with two new 21’ high slides that are 97’ and 150’ long. Demolition of the Old Flume Slide and Move Bridge $ 84,312.50 Demolition of slides and other features was discussed as part of the pool design reviewed by the park and recreation commission and city council last October. The quote for this item (demolition) and the previous item (installation of new slides) is $512,562.50 – approximately $135,000 less than the $650,000 estimate from last October. This agreement is with Webber Recreational Design; however, the subcontractor is Kevitt Excavating – a Crystal business who is doing other excavation on the site. A second subcontractor quote was received by Webber Recreational Design from Twin Cities Demo, which was much higher. Webber Recreational Design will coordinate the demolition work with installation of the new features. A small part of the cost here includes removing the bridge over the bottom of the slides to provide access to the area for construction. While this quote refers to putting the current bridge back in place, that is not recommended since the bridge is 34 years old and does not fully meet current codes. If new slides are built (above item), there would be no need to replace the bridge. The new slides have a smaller footprint, which would allow sidewalk access around the back of the slides. The cost of new sidewalks is approximately $100,000 less than a new bridge. Recommendation Staff recommends approval of the attached resolution entering into agreements with Webber Recreational Design, Inc. for the following amenities for the Crystal Cove Aquatic Center pool. • New 2M / 3M Diving Platform $ 171,350.00 • New Drop Slide and Structure $ 146,500.40 • New Double Flume Slide and Structure $ 428,250.00 • Demolition of Old Flume Slide and Move Bridge $ 84,312.50 Total $ 830,412.90 8.4 CITY OF CRYSTAL RESOLUTION 2024 - RESOLUTION TO APPROVE THE PURCHASE AND INSTALLATION OF AMENITIES AND COMPLETE DEMOLITION WORK AT THE CRYSTAL COVE AQUATIC CENTER WHEREAS, the City of Crystal owns and operates Grogan Park and Crystal Cove Aquatic Center, and WHEREAS, the 2024 long term plan (buildings fund) includes $3,300,000 for improvements at the Crystal Cove Aquatic Center, and WHEREAS, this project at the Crystal Cove Aquatic Center has also been selected to receive a legislative appropriation of $2,350,000 and a Hennepin Youth Activities Grant of $300,000, and WHEREAS, Webber Recreational Design provided quotes through the Cooperative Purchasing Connection (CPC) for the purchase and installation of 2M / 3M Diving Platforms in the amount of $171,350.00; a new Drop Slide and Structure in the amount of $146,500.40 and new double flume slides and structure in the amount of $428,250, and WHEREAS, Webber Recreational Design received two quotes for demolition of the old flume slides and moving the bridge over the slides at the Crystal Cove Aquatic Center, and WHEREAS, the low demolition quote received by Webber Recreational Design; in the amount of $84,312.50, was from Kevitt Excavating, the demolition contractor selected through a bid process for other parts of the project, now THEREFORE, BE IT RESOLVED: A. That the Crystal City Council wishes to enter into an agreement with Webber Recreational Design, Inc. for the following items at the Crystal Cove Aquatic Center. 1. 2M / 3M diving platforms in the amount of $171,350.00. 2. New drop slide and structure in the amount of $146,500.40. 3. New double flume slide and structure in the amount of $428,250.00. 4. Demolition of the old flume slide and moving the bridge in the amount of $84,312.50. B. That the Crystal City Council hereby authorizes the mayor and city manager to sign the agreements with Webber Recreational Design, Inc. for this project. Adopted by the Crystal City Council this 4th day of June, 2024. ________________________ Jim Adams, Mayor ATTEST: ___________________________ Christina Serres, City Clerk 8.4 1 Grogan Park / Aquatic Center Pool Amenities – Webber Recreational Design GROGAN PARK / AQUATIC CENTER AMENITY AND DEMOLITION AGREEMENT THIS GROGAN PARK / AQUATIC CENTER AND DEMOLITION AGREEMENT (“Agreement”) is made and entered into this 4th day of June, 2024, by and between the City of Crystal, a Minnesota municipal corporation, located at 4141 Douglas Drive North, Crystal, Minnesota 55422 (“City”), and Webber Recreational Design, Inc., a Minnesota company located at 1442 Brooke Court, Hastings, MN 55033 (“Contractor”). The City and the Contractor may hereinafter be referred to individually as a “party” or collectively as the “parties.” RECITALS A.The City desires to have slides and other amenities installed at the Crystal Cove Aquatic Center in Grogan Park, a City Park located at 4848 Douglas Drive North (“Park”). B.The City also desires to have existing slides and other amenities demolished in preparation for new slides and other amenities being installed at the Crystal Cove Aquatic Center in Grogan Park. C.The Contractor provided the City written quotes for the demolition of existing structures and purchase / installation of new slides and other structures at the aquatic center with specifications established by the City (“Project”). D.The Contractor desires to undertake and complete the Project for the City in accordance with the terms and conditions of this Agreement. AGREEMENT In consideration of the mutual promises and agreements contained herein, and intending to be legally bound, the City and the Contractor hereby agree as follows: 1.Scope of Work. a.The Contractor, for and in consideration of the payment or payments herein specified and to be made by the City, covenants and agrees to furnish all materials, all necessary tools, and equipment, and to do and perform all the work and labor necessary to complete the Project, all in strict conformity with the Contractor’s quote and scope of work contained in the attached Exhibits A1, A2, A3 and A4 (all work, materials and equipment set forth in this paragraph and contained in Exhibits A1, A2, A3 and A4 are hereinafter collectively referred to as the “Specifications”). Said Specifications are hereby fully incorporated as part of this Agreement. b.The Contractor agrees that all work and labor shall be done in the best and most diligent manner and that all materials and labor shall be in entire and strict conformity in every respect with the said Specifications and shall be subject to the inspection and approval by the proper authorities of the City for the supervision of the work, and in case any of said material or labor shall be rejected by the City as defective or 8.4 2 Grogan Park / Aquatic Center Pool Amenities – Webber Recreational Design unsuitable, then the materials shall be removed and replaced with other approved materials and the labor shall be done anew to the satisfaction and approval of the City at the cost and expense of the Contractor. c. The contractor and any subcontractor on this project shall be required to pay all employees who work on this project and who fall within any job classification established and published by the Minnesota Department of Labor and Industry (Department) no less than the prevailing wage rate as certified by the Department for all work performed on the project. The Department shall determine the prevailing wage rate in accordance with Minn. Stat. §177.41 et seq. and applicable rules including, but not limited to, Minnesota Rules 5200.1000 et seq. Neither the contractor nor any subcontractor shall evade or attempt to evade the provisions of this section through the use of non-recognized training programs. The only employees involved in training programs that shall be allowed to work this project shall be those employed and registered in a bona fide apprenticeship program registered with the U.S. Department of Labor or with a state apprenticeship agency. The contractor shall post in at least one conspicuous place on the job site, or have present on the person of the supervisor in charge of the site if the City determines that posting at the job site is not practical, the certified prevailing wage rates for each job classification for the area in which the project is being performed, including the effective dates of any changes thereof. The posting shall also include the penalties for any violations and the method by which violations may be reported. The contractor shall be the responsible party to ensure the payment of prevailing wages by the contractor and by any subcontractors employed and/or performing work as part of the project. The contractor shall be responsible to inform all subcontractors to be hired by the contractor on this project of the prevailing wage requirement and of the remedies available to the City if the subcontractor fails to pay at least the prevailing wage as required. The contractor or subcontractor shall be liable directly to the underpaid laborer or mechanic for the unpaid wages and agrees that laborers or mechanics have such a cause of action against the contractor or subcontractor for unpaid wages. The failure of the contractor or any subcontractor to abide by the prevailing wage requirement may result in, in the City’s sole discretion, contract payment delay, cancellation of the contract, and/or payment of up to five percent (5%) of the entire contract price by the contractor or subcontractor to the City as liquidated damages. The contractor may appeal any action taken by the City pursuant to this section to the City Council which reserves the right to have such appeal heard by an independent hearing examiner. Upon the request of the City, the contractor and/or subcontractor shall submit to the City copies of their weekly payrolls for each week in which any contact work is performed. Payrolls so submitted shall set out accurately and completely all information required by the City. 8.4 3 Grogan Park / Aquatic Center Pool Amenities – Webber Recreational Design No final payment shall be made under the contract until the validity of any prevailing wage complaint has been determined by the City or by the Department. The City and/or the Department shall have the right to interview any employees during work hours relative to a complaint. d. The Contractor agrees to make good, replace, and renew at the Contractor’s own cost and expense any loss or damage to the work and Project occurring during the installation or prior to the final acceptance thereof by the City, by reason of fire, tornado, theft, or any cause whatsoever, and to be wholly responsible for the installation, completion and delivery of the Project in its entirety for the final acceptance by the City; and any payment or payments made to the Contractor hereunder, shall not be construed as operating to relieve the Contractor from responsibility for the construction and delivery of the Project as provided and agreed through this Agreement. 2. Schedule; Liquidated Damages. a. The Contractor agrees to commence the work on the Project at the earliest practicable date and to prosecute the same diligently and without delay and to have the work entirely completed in every respect to the satisfaction and approval of the City on or before June 15, 2025. In case of the failure on the part of the Contractor, for any reason except with the written consent of the the City, to complete the Project on or before said date, the City shall have the right to deduct from any money due or which may become due to the Contractor, the amount of two hundred dollars ($200.00) per day for each and every day elapsing between the time stipulated for the completion and the actual date of completion, in accordance with the terms thereof; or if no moneys shall be due the Contractor, the City shall have the right to recover such sum; such deduction to be made or such sum to be recovered not as a penalty, but as liquidated damages. The Contractor agrees that it will be difficult for the City to determine the amount of all damages that the City would incur as a result of delay and that the liquidated damages set forth in this paragraph are reasonable. b. The Contractor agrees to notify the City in writing of any and all causes of delay of work, or any part thereof, within 24 hours after such cause of delay shall arise, and in case of the failure of the Contractor to perform this Agreement and complete the work at the time hereinafter specified, the City may immediately, or at any time thereafter, proceed to complete the work at the cost and expense of the Contractor. Upon receipt of written notice from the Contractor of the existence of causes over which the Contractor has no control and which must delay the completion of the work, including without limitation, fire, flood, epidemic, strikes, wars, acts of God, acts of public authorities, or delays or defaults caused by public carriers, the City shall reasonably extend the date previously specified for the completion of the work and in such case the Contractor shall only become liable for such liquidated damages for failure to perform during any delay after the time is so extended. 8.4 4 Grogan Park / Aquatic Center Pool Amenities – Webber Recreational Design 3. Compensation. a. This is a lump sum agreement. The City agrees to pay the Contractor the lump sum identified in the Contractor’s quote, which is attached hereto as Exhibit A. If the Contractor properly performs the work, the City shall, from month to month before completion of the work and pursuant to invoices from the Contractor, pay the Contractor up to 95 percent of the amount already earned under the Agreement. When the work is 95 percent or more completed, upon the sole determination of City staff, such portions of the retained price shall be released only as the City determines it need not be retained to protect the interest of the City in the satisfactory completion of the Agreement. The balance shall be retained by the City until the final performance and completion of this Agreement by the Contractor to the satisfaction, approval, and acceptance of the City including provision by the Contractor of Minn. Dept. of Revenue Form IC-134 or other authorized proof of the Contractor’s compliance with applicable state laws. b. No claim for extra work done or materials furnished by the Contractor will be made by the Contractor or allowed by the City, nor shall the Contractor do any work or furnish any materials not covered by the Specifications, unless such work or materials is ordered in writing by the City. Any such work or materials which may be done or furnished by the Contractor without such written order first being given, shall be at the Contractor's own risk and expense. 4. Non-Discrimination. The Contractor agrees that in the hiring of common or skilled labor for the performance of any work under this Agreement or any subcontract hereunder, no contractor, material supplier, or vendor, shall, by reason of race, color, sex, creed, national origin, disability, age, sexual orientation, status with regard to public assistance, or religion, discriminate against any person or persons who are qualified and available to perform the work to which such employment relates; that neither the Contractor nor any subcontractor, material supplier, or vendor, shall in any manner discriminate against, or intimidate, or prevent the employment of any such person or persons from the performance of work under this Agreement or any subcontract hereunder on account of race, color, sex, creed, national origin, disability, age, sexual orientation, status with regard to public assistance, or religion. 5. Insurance. The Contractor shall maintain commercial general liability coverage for all work covered under the Agreement in at least the amounts of $1,500,000.00 per occurrence for combined bodily injury and property damage, and $2,000,000 in the general aggregate, and commercial automobile liability insurance in at least the amount of $1,000,000 per occurrence for combined bodily injury and property damage covering owned, non-owned, and hired automobiles. The Contractor shall provide the City with a current certificate of insurance listing the City as an additional insured with respect to the aforementioned policies. To meet the requirements herein, the Contractor may use a combination of excess and umbrella coverage. The Contractor also agrees to keep in force during the entire term of this Agreement statutory workers’ compensation insurance. 8.4 5 Grogan Park / Aquatic Center Pool Amenities – Webber Recreational Design 6. Indemnification. The Contractor hereby agrees to protect, defend and hold the City and its officers, elected and appointed officials, employees, administrators, commissioners, agents, and representatives harmless from and indemnified against any and all loss, costs, fines, charges, damage and expenses, including, without limitation, reasonable attorneys’ fees, consultants’ and expert witness fees, and travel associated therewith, due to claims or demands of any kind whatsoever (including those based on strict liability) only to the extent caused by and arising out of (i) the activities contemplated by this Agreement, (ii) including, without limitation, any claims for any lien imposed by law for services, labor or materials, or (iii) by reason of the execution of this Agreement or the performance of this Agreement. The Contractor, and the Contractor’s successors or assigns, agree to protect, defend and save the City, and its officers, agents, and employees, harmless from all such claims, demands, damages, and causes of action and the costs, disbursements, and expenses of defending the same, including but not limited to, attorneys’ fees, consulting engineering services, and other technical, administrative or professional assistance. The Contractor further agrees to indemnify the City and hold it harmless from and against any and all claims, suits, and actions against, and all loss, damage, costs, or expense to the City occasioned by or arising from any infringement or claim of infringement of any letters patent, or patent rights upon or covering any patented article or articles furnished or installed by the Contractor under this Agreement for the City, of from or by reason of the use by the City of any patented article or articles furnished or installed by the Contractor for the City under this Agreement. The indemnity contained in this paragraph shall be continuing and shall survive the performance or cancellation of this Agreement. Nothing in this Agreement shall be construed as a limitation of or waiver by the City of any immunities, defenses, or other limitations on liability to which the City is entitled by law, including but not limited to the maximum monetary limits on liability established by Minnesota Statutes, Chapter 466, or otherwise. 7. Independent Contractor. The Contractor and its employees are not employees of the City. Nothing in the Agreement is intended or should be construed in any manner as creating or establishing the relationship as employer/employee, co-partners, or a joint venture between the City and the Contractor. It is agreed that the Contractor and its employees will act as an independent contractor and acquire no rights to tenure, workers’ compensation benefits, unemployment compensation benefits, medical and hospital benefits, sick and vacation leave, severance pay, pension benefits or other rights or benefits offered to employees of the City. The manner in which the Project is to be performed shall be controlled by the Contractor; however, the nature of the services and the results to be achieved shall be specified by the City. 8. Termination. The City may terminate this Agreement upon 30 days’ written notice, except that if the Contractor is in default and fails to cure the default within ten days following written notice by the City, the City has the right to terminate this Agreement immediately upon written notice of termination. The Contractor will be paid for services properly rendered and equipment property installed prior to the effective date of termination. The following provisions of this Agreement shall survive expiration, termination, or cancellation of this Agreement: Indemnification; Insurance; Governing Law; Data Practices; and Audit. 8.4 6 Grogan Park / Aquatic Center Pool Amenities – Webber Recreational Design 9. Amendments. Any amendment to this Agreement must be in writing and signed by both parties. 10. Assignment. No assignment or attempted assignment of this Agreement or of any rights hereunder shall be effective without the prior written consent of the City. 11. Authority. Each of the undersigned parties warrants it has the full authority to execute this Agreement. 12. No Personal Liability. No officer, agent or employee of the City shall be personally liable to the Contractor, or any successor in interest, in the event of any default or breach by the City on any obligation or term of this Agreement. 13. Notices. Any notice, demand, or other communication under this Agreement by either party to the other shall be sufficiently given or delivered if it is dispatched by registered or certified mail, postage prepaid, return receipt requested, or delivered personally to the addresses listed in the preamble to this Agreement, or at such other address with respect to either such party as that party may, from time to time, designate in writing and forward to the other as provided in this section. 14. No Agency. The Contractor acknowledges that nothing contained in this Agreement nor any act by the City or the Contractor shall be deemed or construed by the Contractor or by any third person to create any relationship of third-party beneficiary, principal and agent, limited or general partner, or joint venture between the City and the Contractor. 15. Counterparts. This Agreement may be executed in any number of counterparts, each of which shall constitute one and the same instrument. 16. Governing Law. This Agreement shall be governed by and construed in accordance with the laws of the state of Minnesota. Any disputes, controversies, or claims arising out of this Agreement shall be heard in the state or federal courts of Minnesota, and all parties to this Agreement waive any objection to the jurisdiction of these courts, whether based on convenience or otherwise. 17. Compliance with Laws. The Contractor warrants that all work performed pursuant to this Agreement shall be in compliance with all federal, state and local laws, ordinances, regulations, rules, and standards. 18. Entire Agreement. This Agreement, any attached exhibits and any addenda or amendments signed by the parties shall constitute the entire Agreement between the City and Contractor, and supersedes any other written or oral agreements between and City and Contractor. 19. Severability. In the event that any one or more of the provisions of this Agreement, or any application thereof, shall be found to be invalid, illegal or otherwise unenforceable, the validity, legality, and enforceability of the remaining provisions in any application thereof shall not in any way be affected or impaired thereby. 8.4 7 Grogan Park / Aquatic Center Pool Amenities – Webber Recreational Design 20. Waivers. No failure by any party to insist upon the strict performance of any covenant, duty, agreement, or condition of this Agreement or to exercise any right or remedy consequent upon a breach thereof, shall constitute a waiver of any such breach of any other covenant, agreement, term, or condition, nor does it imply that such covenant, agreement, term or condition may be waived again. 21. Data Practices. Any and all data created, collected, received, stored, used, maintained, or disseminated by the parties pursuant to this Agreement shall be administered in accordance with, and is subject to the requirements of the Minnesota Government Data Practices Act, Minnesota Statutes, Chapter 13. 22. Audit. The Contractor agrees that the City, the Minnesota State Auditor, and Minnesota Legislative Auditor, or any of their duly authorized representatives, at any time during normal business hours and as often as they may reasonably deem necessary, shall have access to and the right to examine, audit, excerpt and transcribe any books, documents, papers, and records that are relevant and involve transactions relating to this Agreement for six years following termination of this Agreement. IN WITNESS THEREOF, the parties hereto have executed this Agreement as of the day and year written above. CITY: CONTRACTOR: By: _____________________________ By: ___________________________ Jim Adams Its: Mayor Its: By: _____________________________ Adam R. Bell Its: City Manager 8.4 8 Grogan Park / Aquatic Center Pool Amenities – Webber Recreational Design EXHIBIT A1 - Contractor’s Quote 8.4 9 Grogan Park / Aquatic Center Pool Amenities – Webber Recreational Design 8.4 Grogan Park / Aquatic Center Pool Amenities – Webber Recreational Design EXHIBIT A2 - Contractor’s Quote 8.4 Grogan Park / Aquatic Center Pool Amenities – Webber Recreational Design 8.4 Grogan Park / Aquatic Center Pool Amenities – Webber Recreational Design EXHIBIT A3 - Contractor’s Quote 8.4 Grogan Park / Aquatic Center Pool Amenities – Webber Recreational Design 8.4 STEEL INFO16"Ø A500 GR. B COLUMNS5SUPPORT ARMS16PLATFORM AND DECK AREA150 SF54" WIDE TREADS34WATERSLIDE INFO36" OPEN FLUME LENGTH150'-7"32" CLOSED TUBE LENGTH97'-7"TOWER HEIGHT21'-0"P1eProject No.:RLJ23CRY12/17/23Date:CRYSTAL COVE WATERSLIDECRYSTAL, MN8.4 Grogan Park / Aquatic Center Pool Amenities – Webber Recreational Design EXHIBIT A4 - Contractor’s Quote 8.4 5240 WEST BROADWAY AVENUE – AMEND TOWN CENTER - PLANNED DEVELOPMENT APPLICATION PAGE 1 OF 5 __________________________________________________________________________ FROM: Dan Olson, City Planner __________________________________________________________________________ TO: Adam R. Bell, City Manager (for June 4 Meeting) DATE: May 29, 2024 RE: Consider second reading of ordinance amending the Town Center - Planned Development at 5240 West Broadway Avenue and adoption of a resolution approving summary language of the ordinance for publication A.INTRODUCTION Crystal Housing Group is proposing to amend the existing apartment site plan for the Town Center-Planned Development (TC-PD) at 5240 West Broadway so that a sport court can be added in the northeast corner of the property. Sport courts are not allowed in the TC-PD district, but the district allows land use flexibility through an amendment approval process. Notice of the May 13 public hearing was published in the Sun Post on May 2, mailed to owners, renters, and commercial tenants within 500 feet (attachment A) and posted to all neighborhoods on Nextdoor. A sign was also posted on the property. At the May 13, 2024 Planning Commission public hearing, the Commission recommended approval of the amendment to the TC-PD district at 5240 West Broadway. No one from the public provided comments. The first reading of the ordinance was approved by the Council on Ma y 21, 2024. At the June 4, 2024 City Council meeting the Council is being asked to approve second reading and adoption of the ordinance and adoption of a resolution for summary publication. Staff Report Attachments: A.Site location and mailing map B.Existing zoning map C.Applicant’s project narrative D.Site photos E.Ordinance F.Resolution approving summary ordinance G.Site plan (5 sheets) COUNCIL STAFF REPORT Amend Town Center – Planned Development 8.5 5240 WEST BROADWAY AVENUE – AMEND TOWN CENTER - PLANNED DEVELOPMENT APPLICATION PAGE 2 OF 5 2022 Aerial Photo (before construction started): B. BACKGROUND Existing Use The 1.7 acre (76, 902 sq. ft) property has a four-story, 58-unit apartment building under construction that was approved by the City Council in 2022. The building is expected to open in June, 2024. Adjacent uses The following are the existing land uses and zoning districts surrounding this property: • North. Vehicle sales and repair, zoned Industrial (I) • East. Office warehouses, zoned I • West. Vehicle sales and repair; food shelf, all zoned Commercial (C) • South. Restaurant; vehicle repair, both zoned I 8.5 5240 WEST BROADWAY AVENUE – AMEND TOWN CENTER - PLANNED DEVELOPMENT APPLICATION PAGE 3 OF 5 C. PROPOSED SPORT COURT The applicant is proposing to construct a sport court in the northeast corner of the property. Formerly this area was shown on the approved plan s as the location for a ground-mounted generator which was later relocated to another area of the property. The following are the notable site plan elements for th is court. • Parking. The approved plan has a total of 117 parking spaces in a surface parking lot and within an underground garage. To construct this sport court, the applicant is proposing to remove one parking space adjacent to the proposed court and replace it with a new compact parking space located adjacent to the building with the other compact spaces. To accomplish this, the parking lot near the compact spaces would be slightly enlarged but still meets the city’s requirements. Therefore there is no change in the number of parking spaces provided. • Stormwater management. The stormwater management plan approved in 2022 provides for a storage chamber under the surface parking lot, and this chamber is adequate to manage stormwater runoff for the sport court. The percentage of impervious surface on the property will increase from 69% to 71% (the maximum coverage is 90% for the TC-PD district). Utilities. The proposed sport court will not interfere with existing utilities, and will not be located in a drainage or utility easement. Landscaping. The applicant proposes to plant Medora Juniper (see photo below), to screen the proposed sport court from view of adjacent properties to the north and east. 8.5 5240 WEST BROADWAY AVENUE – AMEND TOWN CENTER - PLANNED DEVELOPMENT APPLICATION PAGE 4 OF 5 • Fencing. A 7-foot tall black vinyl coated chain-link fence is proposed around the sport court itself. The UDC does not allow chain-link fences in the TC-PD district, but the district regulations allow for flexibility from this requirement (see section D, below). • Exterior Lighting. Since the sport court is not intended for use at night, a dditional exterior lighting is not proposed in the court area. In 2022 the City Council approved six light poles for the property with seven exterior lighting fixtures on the apartment building. D. AMENDMENT TO TOWN CENTER PLANNED DEVELOPMENT (TC - PD) To construct the sport court the applicant is requesting an amendment to the TC-PD site plan approved in 2022. The district allows for flexibility in zoning requirements. Attachment C details the applicant’s rationale for requesting flexibility with the following requirements, and staff is supportive of these requests : 1. Allow sport court use. The UDC does not allow sport courts as an accessory use in the TC-PD district. The applicant’s narrative indicates that a sport court will be a useful amenity for residents of the apartment building. 2. Chain-link fence. The UDC does not allow chain-link fences in the TC-PD, mainly due to a desire for higher quality fencing, such as wrought iron. The applicant’s narrative indicates that a different fence type would be more rigid and could cause injuries to those using the court. In this case staff agrees that chain-link is the better choice. E. REQUESTED ACTION At the May 13, 2024 Planning Commission meeting, the Commission recommended approval of the TC-PD amendment by a vote of 7 to 0 (2 members were absent). The ordinance in attachment E reflects the Planning Commission recommendation and is the same ordinance the City Council approved at first reading on May 21. The following is the proposed schedule for adopting the TC-PD amendment: June 13 Summary of ordinance published July 13 Effective date of ordinance In 2022 the rezoning to TC-PD implemented the following special provisions in place of the standard town center requirements. If the amendment is approved by the City Council, (f) would be added to the previously approved special provisions (a-e). 1. Special provisions related to Town Center - Planned Development rezoning. The rezoning to TC-PD implements the following special provisions in place of the standard town center requirements: a. The number of enclosed parking spaces is reduced from 58 to 52 spaces. 8.5 5240 WEST BROADWAY AVENUE – AMEND TOWN CENTER - PLANNED DEVELOPMENT APPLICATION PAGE 5 OF 5 b. The minimum glazing requirement is reduced from 50% to 33% for the first floor and from 30% to 27% for the upper floors. c. The minimum first floor height is reduced from 12’ to 10’. d. The building street frontage requirement is reduced from 75% to 69%. e. The maximum front building setback is increased from 10’ to 24’. f. A sport court enclosed by a chain-link fence is allowed in the northeast corner of the property. 8.5 Site Location and Public Hearing Notice Mailing Map 5240 West Broadway 4141 Douglas Dr. N. Crystal MN 55422 Attachment A 8.5 Zoning Map 5240 West Broadway 4141 Douglas Dr. N. Crystal MN 55422 Attachment B 8.5 5240 Apts. Crystal Housing Group, LLC Narrative 5240 Apts is located at 5240 W. Broadway Ave. The proposed amendment to the site plan is to allow a 25’ x 35’ sports court on-site. During the original design and submittal, the developer and owner believed that there would be significant soil corrections on-site, which would be cost prohibitive to installing additional amenities, such as a sports court. With the building nearly complete and little to no soil corrections necessary on-site, the owner is requesting an amendment to the site plan to allow a 25’ x 35’ sports court. The developer has added sports courts to its recent apartment communities in Roseville, Plymouth, Dayton, and Shakopee to provide an on-site amenity that can be used for young kids, teenagers and even adults. The sports court will have a 7’ high chain link, black vinyl coated fence around the perimeter with a fixed basketball hoop, and athletic flooring that will include a free-throw line and a four-square area. Throughout these communities, the Property Management team has found that the teenagers and adults have enjoyed having an on-site outdoor community space to gather and play games. Additionally, it provides a safe space with a defined activity (outdoor recreation) for kids looking to hang out. While the owner and developer recognize that Becker Park is nearby and a large park with many amenities, the purpose of this request is to provide a closer option for those times after school, before dinner, before bed, when kids and residents are looking for a place to hang out with their neighbors and friends. Below are some recent pictures from the communities mentioned above. The sports court at 5240 Apts would be of similar design and style. The City requested an opaque fence along the North and East property lines shielding the sports court from the adjacent nonresidential properties. With adding an opaque fence on the property line, this would create a double fence scenario as a chain-link fence is required at the sports court. A double fence scenario would create issues with yard maintenance, with collecting material like leaves and garbage. Additionally, it isn’t feasible to have the opaque fence part of the sports courts as the rigidity of the opaque fence could result in injuries. To accommodate the city’s request for screening, the applicant has proposed coniferous shrubs in lieu of a fence, which will allow the free flow of air behind the sports court and access if needed. These shrubs would be easily replaced if any utility work were to occur. a)Current zoning district for the property is Town Center - Planned Development. b)Existing and proposed use for the property is a 58 unit apartment community with a mix of 1, 2, 3 and 4 bedroom apartments that is under construction and planned to open in June 2024. Attachment C 8.5 Sport court area viewed from northeast property corner View from Big Louie's restaurant parking lot Attachment D 8.5 View of sport court area looking south Sport court area 8.5 ORDINANCE NO. 2024 - _____ CITY OF CRYSTAL AN ORDINANCE AMENDING THE TOWN CENTER - PLANNED DEVELOPMENT (TC-PD) AT 5240 WEST BROADWAY AVENUE THE CITY OF CRYSTAL ORDAINS: Section 1. Legislative Findings. The City Council of the City of Crystal hereby finds and determines as follows: (a)Crystal Housing Group (“Applicant”) previously applied to the City to rezone their property located at 5240 West Broadway Avenue (“Property”) to the Town Center – Planned Development (TC-PD) zoning district as provided in Crystal city code, subsection 515.13; and (b)On September 6, 2022 the City Council adopted Ordinance No. 2022-05__ (“Approval Ordinance”) approving the requested rezoning, which places restrictions on the use of the Property; and (c)The Applicant is now applying to amend the Approval Ordinance to expressly allow it to construct a sport court with a chain-link fence on the Property; and (d)The Planning Commission held a public hearing on the requested amendment on May 13, 2024 and voted to forward the requested amendment to the City Council with a recommendation that it be approved; and (e)The City Council determines the proposed amendment to the Approval Ordinance to allow a fenced sport court on the Property complies with the approval criteria in Crystal city code, subsection 515.13 and other applicable provisions. Section 2. Special Provisions. The Approval Ordinance is hereby amended by adding the double-underlined material as follows: 1.Special provisions related to Town Center - Planned Development rezoning. The rezoning to TC-PD implements the following special provisions in place of the standard town center requirements: a.The number of enclosed parking spaces is reduced from 58 to 52 spaces. b.The minimum glazing requirement is reduced from 50% to 33% for the first floor and from 30% to 27% for the upper floors. c.The minimum first floor height is reduced from 12’ to 10’. d.The building street frontage requirement is reduced from 75% to 69%. Attachment E 8.5 e. The maximum front building setback is increased from 10’ to 24’. f. A sport court enclosed by a chain-link fence is allowed in the northeast corner of the property. Section 3. Effective Date. This ordinance shall not be codified into the Crystal city code and is effective in accordance with Crystal city code, subsection 110.11. _____________________________ Jim Adams, Mayor ATTEST: __________________________ Chrissy Serres, City Clerk First Reading: May 21, 2024 Second Reading and Adoption: ________________________ Publication: ________________________ Effective Date: ________________________ 8.5 1 CITY OF CRYSTAL MINNESOTA RESOLUTION NO. 2024-__ RESOLUTION APPROVING SUMMARY LANGUAGE FOR PUBLICATION OF ORDINANCE NO. 2024-____ WHEREAS, the Crystal City Council adopted Ordinance No. 2024-____ “An Ordinance Amending the Town Center – Planned Development (TC-PD) at 5240 West Broadway” (the “Ordinance”) at its meeting held on June 4, 2024; and WHEREAS, Section 3.12 of the Crystal City Charter and Section 110.13 of the Crystal City Code indicate that ordinances approved by the City Council will be published in summary form and that the City Council is to approve the form of the summary. NOW, THEREFORE, BE IT RESOLVED, by the City Council of the City of Crystal that the following summary language is hereby approved for publication of the Ordinance: CITY OF CRYSTAL ORDINANCE #2024-____ AN ORDINANCE AMENDING THE TOWN CENTER-PLANNED DEVEVELOPMENT (TC-PD) AT 5240 WEST BROADWAY SUMMARY OF ORDINANCE No. 2024-___ Ordinance No. 2024-___ has been approved by the city council on June 4, 2024. A printed copy of the full text of the ordinance is available for public inspection in the office of the city clerk. The City Council adopted the above referenced ordinance amending the Town Center – Planned Development (TC-PD) at 5240 West Broadway to allow a sport court surrounded by a chain-link fence on the property. A copy of the full text of the ordinance is available on the City’s website and by contacting the City Clerk. BE IT FINALLY RESOLVED, that the City Clerk is hereby authorized and directed to do each of the following: 1.Publish the approved summary language once in the City’s official newspaper; 2.Place a copy of this Resolution, the full text of the Ordinance, and the affidavit of publication of the summary language in the City’s ordinance book; 3.Make the full text of the Ordinance available for public inspection in the office of the City Clerk Attachment F 8.5 2 during the City’s regular business hours; and 4.Post the updated Crystal City Code on the City’s website. Adopted this 4th day of June, 2024. ______________________________ Jim Adams Mayor ATTEST: _______________________________ Chrissy Serres City Clerk 8.5 872 8 7 2 8 7 4 870 80.0080.00 W. BROADWAY (CO. RD. 8)(VARIABLE WIDTH DEDICATEDPUBLIC RIGHT OF WAY)1 0 1 0 2 0SFO CSSWATX X X X X X X X X XXXXXXXXXXXXXXSANSANSANSANSANSANSANSANSANSANWATWATWATWATWATWATWATWATWATWATWATWATWATSANSAN STOSTOSTOSTOSTOSTOSTOSTOSTOSTOSTOSTOSTOSTO STOP O H P O H P O H P O HPOH POH POHPOHPOHPOHPOHPOHPOHPOHPOHPOHPOHPOH POHPOHPOHPOHPOHPOHOWNER: MATTALLIE LLCOWNER: CRYSTAL PROP OWNER LLCOWNER: SUESCO INCOWNER: SUESCO INCOWNER: SUESCO INCOWNER: VT PROPERTIES LLCOWNER: BEAVERBUILDING I LLCWATWATWAT(80 FT. WIDE DEDICATEDPUBLIC RIGHT OF WAY)9.0'14.2'32. 2 ' 1 8 . 0 ' 6.0'18.7'8.0'19.7'APARTMENT BUILDINGFFE: 875.023.9'84.9'11.8'20.7'ACACACGT XXXX X X XXXX 2 4 . 0 ' 2 0 . 0 ' 2 0 . 0 ' 2 4 . 0 ' 18. 0 'R3.0'R25.0'R3.0' R3.0'R3.0 ' R3.0'R15.0'6.0'R13.0'R37.0'R37.0'R13.0'R3.0'R5.0'R44.0'R20.0'12.0'47.1'8.0'16.0'8.0'4.3'4.3'12.0'6.0'5.0'5.0'76911116111919232581113121017111891511314141' RIBBONCURB5' SIDEWALKBANDING1119311919122SURMOUNTABLE CURB AND GUTTERTAPERS TO 0" AT CONCRETE WALKS24" DRAINAGEDRAINAGE SLOTS2021PARKING LOT ISLANDS TOBE UTILIZED FOR SNOWSTORAGE AS NEEDED5.2'2 5 . 0 '35.0'2. 0 '5.2'1 0 . 4 ' 1 0 . 4 'REMOVAL OFSURMOUNTABLE CURB ATISLAND FOR SPORT COURT.R3.0'...06/14/2230'6' OR 3'·CURRENT ZONING:INDUSTRIAL·PROPOSED ZONING:TC-PD·GROSS SITE AREA:76,944 SF (1.76 AC)LOT 1·BUILDINGS:APARTMENT:58 UNITS4 LEVELS LIVING SPACE1 LEVEL UNDERGROUND PARKINGDENSITY:32.95 UNITS/AC.·BUILDING SETBACKS:1' FRONT ; 0' REAR ; 3' SIDE·PROPOSED BUILDING SETBACKS:MAX . 24' FRONT; MIN. 10' SIDE·PARKING SETBACKSREAR 3' BOC ; SIDE 1' BOC·PARKINGPARKING REQUIREDSURFACE PARKING116 SPACES2 SPACES / UNITPARKING PROVIDEDSURFACE PARKING64 SPACES52 TYPICAL SPACES3 ADA SPACES9 COMPACT SPACESUNDERGROUND GARAGE52 SPACES116 SPACES·RATIO:2.0 SPACES/UNIT·PARKING SPACE / DRIVE AISLE:9' WIDE X 18' LONG, 24' AISLE·COMPACT PARKING SPACE:8' WIDE X 16' LONG, 24' AISLEIMPERVIOUS SURFACE:71.4%EXISTINGPROPOSED·PERVIOUS SURFACE:33,853 SF 21,989 SF·IMPERVIOUS SURFACE:43,091 SF 54,955 SFBUILDING FRONTAGE:68.5%·TOTAL LENGTH:308.1 LF·BUILDING LENGTH:211.3 LFSITE DEVELOPMENT SUMMARY1. LOCATIONS AND ELEVATIONS OF EXISTING TOPOGRAPHY AND UTILITIES AS SHOWN ON THISPLAN ARE APPROXIMATE. CONTRACTOR SHALL FIELD VERIFY SITE CONDITIONS AND UTILITYLOCATIONS PRIOR TO EXCAVATION/CONSTRUCTION. IF ANY DISCREPANCIES ARE FOUND, THEENGINEER SHOULD BE NOTIFIED IMMEDIATELY.2. REFER TO BOUNDARY SURVEY FOR LOT BEARINGS, DIMENSIONS AND AREAS.3. ALL DIMENSIONS ARE TO BACK OF CURB FOR RESIDENTIAL OR EXTERIOR FACE OF BUILDINGUNLESS OTHERWISE NOTED.4. REFER TO ARCHITECTURAL PLANS FOR EXACT BUILDING DIMENSIONS AND LOCATIONS OFEXITS, RAMPS, AND TRUCK DOCKS.5. ALL CURB RADII SHALL BE 5.0 FEET (TO BACK OF CURB) UNLESS OTHERWISE NOTED.6. ALL CURB AND GUTTER SHALL BE B612 UNLESS OTHERWISE NOTED.7. THE CONTRACTOR SHALL BE RESPONSIBLE FOR PROVIDING AND MAINTAINING TRAFFICCONTROL DEVICES SUCH AS BARRICADES, WARNING SIGNS, DIRECTIONAL SIGNS, FLAGGERSAND LIGHTS TO CONTROL THE MOVEMENT OF TRAFFIC WHERE NECESSARY. PLACEMENT OFTHESE DEVICES SHALL BE APPROVED BY THE CITY AND ENGINEER PRIOR TO PLACEMENT.TRAFFIC CONTROL DEVICES SHALL CONFORM TO APPROPRIATE MNDOT STANDARDS.8. BITUMINOUS PAVEMENT AND CONCRETE SECTIONS TO BE IN ACCORDANCE WITH THERECOMMENDATIONS OF THE GEOTECHNICAL ENGINEER.9. CONTRACTOR SHALL MAINTAIN FULL ACCESS TO ADJACENT PROPERTIES DURINGCONSTRUCTION AND TAKE ALL PRECAUTIONS NECESSARY TO AVOID PROPERTY DAMAGE TOADJACENT PROPERTIES.GENERAL SITE NOTESSITE LEGENDPROPERTY LINESETBACK LINEEASEMENT LINECURB AND GUTTERLOT LINEPOND NORMAL WATER LEVELRETAINING WALLCONCRETE PAVEMENTNUMBER OF PARKING STALLSTRANSFORMERSITE LIGHTING (SEE LIGHTING PLANS)EXISTINGPROPOSEDFENCEXXHEAVY DUTY BITUMINOUS PAVEMENTNORMAL DUTY BITUMINOUS PAVEMENTTRAFFIC SIGNPOWER POLEBOLLARD / POSTCONCRETE SIDEWALKTIP-OUT CURB AND GUTTER5T 1 B612 CURB AND GUTTER2PEDESTRIAN CURB RAMP W/ TRUNCATED DOMES3 FLUSH CURB4 INTEGRAL CURB AND SIDEWALK5 HANDICAP ACCESSIBLE SIGNAGE AND STRIPPING6 CURB STOP7 BIKE RACK (SEE ARCH. PLANS)8 PICNIC TABLE & GRILLS (SEE ARCH. PLANS)9 SITE LIGHTING (SEE LIGHTING PLANS)10 TOT LOT (SEE ARCH. PLANS)11 PRIVATE CONCRETE SIDEWALK12 PUBLIC CONCRETE SIDEWALK13 COLORED CONCRETE BOULEVARD - CHARCOAL GRAY14 FUTURE ELECTRIC CAR CHARGING STATIONS (17)15 TRASH PICK-UP PAD16FENCE (SEE ARCH. PLANS)17 RETAINING WALL18 HANDRAILS (SEE ARCH. PLANS)19 SURMOUNTABLE CURB AND GUTTER20 TRANSFORMER PAD21 GENERATOR PAD22 SPORT COURT (SEE ARCH PLANS)1SITE NOTESCOLORED CONCRETE PAVEMENTSNOW STORAGE AREASHEET NUMBER:VERTICAL SCALE:DATE:PREPARED FOR:OFHORIZONTAL SCALE:DRAWN:CHECKED:DESIGNED:INITIAL ISSUE:REVISIONS:Phone :hLWeZaWer 'rLYe 6XLWe Fax 0LnneWonNa 01 Toll Free DATE:LICENSE NO.I HEREBY CERTIFY THAT THIS PLAN WAS PREPARED BY MEOR UNDER MY DIRECT SUPERVISION AND THAT I AM ADULY LICENSED LANDSCAPE ARCHITECT UNDER THE LAWSOF THE STATE OF MINNESOTA04145377404/30/24NICHOLAS T. MEYERCONSTRUCTION PLANSCommon Ground AllianceCall 48 Hours before digging:811 or call811.com0'30'60'90'1" = 30'P.O. BOX 727WAITE PARK, MN 56387CRYSTAL HOUSING GROUP, LLCCRYSTAL, MINNESOTA5240 APARTMENTSPROJECT NUMBER: 0035789.00SITE PLAN04/30/245240 APARTMENTS N:\0035789.00\DWG\CIVIL\0035789.00C-SP01.DWG © 2022 Westwood Professional Services, Inc.131. SYNTHETIC COURT SYSTEM OVER CONCRETE BASE, SEE MATERIALS/EQUIPMENT SCHEDULE FORMAKE, MANUFACTURER AND/OR OTHER INFO. INCLUDE MARKINGS FOR BASKETBALL AND 4SQUARE; SHOP DRAWINGS REQUIRED.2. CHAIN LINK FENCE TO BE PROVIDED AROUND THE PERIMETER. SEE MATERIALS/EQUIPMENTSCHEDULE FOR MAKE, MANUFACTURER AND/OR OTHER INFO. SHOP DRAWINGS REQUIRED.FENCE TO BE LOCATED IN SLAB WORK, MIN. 6" FROM EDGE.3. REGULATION SIZE BASKETBALL, STANDARD BACKBOARD & HOOP, FOOTING SIZE PERMANUFACTURER RECOMMENDATIONS, AND SHOP DRAWINGS REQUIRED.4. CONCRETE PAVEMENT, COURT BASE, SEE DETAILS & COORDINATE WITH COURTMANUFACTURER DETAILS.SPORT COURT NOTES139 03/31/23 ASI#03 - MN DOLI COMMENTS06/15/23 ASI#04 - ADA & CURB REVISION04/30/24 ASI#08 - SPORT COURT ADDITION08/24/23 ASI#05 - GENERATOR RELOCATION02/22/24 ASI#07 - UTILITY REVISIONS1011121313Attachment G8.5 80.00 8 0 . 0 0 W. BROADWAY (CO. RD. 8)(VARIABLE WIDTH DEDICATEDPUBLIC RIGHT OF WAY)1 0 1 0 2 0FO CSSWAT WAT X X X X X X X X X X X X X X XXXXXXXXXXXXXXXX XXXXXSANSANSANSANSANSANSANSANSANSANSANSANSAN SANWATWATWATWATWATWATWATWATWATWATWATWATWATWATWATWATWATSANSANSANSTOSTOSTOSTOSTOSTOSTOSTOSTOSTOSTOSTOSTOSTOSTOSTOSTOSTOSTOS T O STO STOSTOP O H P O H P O H P O H P O H P O H P O HPOH POHPOH POHPOHPOHPOHPOHPOHPOHPOHPOHPOHPOHPOH POHPOHPOHPOHPOH POHPOHPOHPOHPOHPOHPOHOWNER: MATTALLIE LLCOWNER: CRYSTAL PROP OWNER LLCOWNER: SUESCO INCOWNER: SUESCO INCOWNER: VT PROPERTIES LLC(80 FT. WIDE DEDICATEDPUBLIC RIGHT OF WAY)ACACACGTX XXXXX X XX XXXXX X 872 8 7 2 8 7 4 870 870BUILDINGFFE = 875.00LL1 = 864.00871.00872.09873.03871.97HP872.67E.O.F.872.09871.37871.53HP872.00871.06871.11HP872.00871.71871.83870.01HP871.50870.43870.92871.22871.84E.O.F.871.79871.60871.77872.03871.43869.62867.72864.74864.19864.00864.00864.21864.49866.99869.34871.59872.97873.90872.68872.46872.77872.43872.44875.00874.29874.29B 873.76F 873.76873.86B 874.04F 874.04874.70874.65874.42874.34874.20875.00874.06874.45873.43873.28873.41874.62B 873.95F 873.95B 874.09F 874.09873.47HP873.60873.38873.06872.84HP872.95872.39872.28872.08871.91872.05872.32875.00872.31872.23871.73872.30872.30871.84871.82873.37873.34873.28873.122. 5 6 %2.93%1.50%2.00%3.33%5.88%1.49% 6.50%1.36%2.39% 2 . 3 3% 1 . 3 2% 0 . 9 7%7.00%2 . 0 0% 2. 0 0% 1 . 8 7%864866873.93873.39874.742.00%875.00874.08874.08875.00875.00873.21873.16874.31873.74873.02874.12875.003.44%871.67871.52871.40871.18GRADE BREAK G R A D E B R E A K G R AD E B R E A KGRADE BREAKGRADE BREAKGRADE BREAK2.11%874.58874.49874.654.72%5 . 0 0%1.04%1.19% 4. 9 3%6.33%874.08874.08873.901.69%874.45874.20873.71872.782.09%2.00%4.36%2.52%TW=873.00BW=864.50TW=873.00BW=864.70TW=873.00BW=865.60TW=871.00BW=870.00TW=870.50BW=868.22TW=872.00BW=871.00TW=872.00BW=869.70TW=874.72BW=865.00TW=874.50BW=864.70TW=874.25BW=864.50TW=873.75BW=867.335 : 1 1 0 : 1 4 : 1 872.49872.985 . 0 0%TW=875.00BW=873.43TW=875.00BW=873.43TW=874.83BW=873.00TW=874.83BW=873.00872.83873.33873.83874.332.00%0.40%2.51%5.38%6.44%4.81%6.91%5.22%4.54%3.84%4.82%3.18%2 . 0 0% 0 . 9 7% 1.41%1.74%2.17%1.84% 1 . 9 5% 1 . 7 0%872874 86 8 3:16:17:18:1871.69870.92871.26870.67870.29869.54869.78870.53870.44871.47872.37872.69872.71B 871.80F 871.80B 871.82F 871.82873.65UNDERGROUNDCHAMBER SYSTEMTOC=867.50BOC=863.75OUTLET=866.00100-YR HWL=868.44874.08874.082.00%2.00%874 86486 8 8 7 08748744.30%4.81%872.70873.24873.58874.20872.25873.63874.24873.36873.56872874.145:1E.O.F.870.50872.771 0 X X X X XX X XXXSTOSTOSTOSTOP O H P O H P O H P O H P O H P O H POHPOH POHPOHX XXXXXXXXXX X X X X X X XXXXXXXXXX X X X 4 : 18:1SFSFSFSFS F S F S F S F 0.93%5:1F - 870.84F - 870.54871.35871.38B - 870.50B - 871.34B - 870.54F - 870.00TW = 871.220 . 6 7%871.160.67%871.30870.60F - 870.72B - 871.22F - 870.54B - 870.54BW = 870.55F - 870.52B - 870.52F - 870.45B - 870.95TW = 871.00BW = 870.507 . 6 8%1.50%...06/14/2220'4' OR 2'0'20'40'60'1" = 20'1. LOCATIONS AND ELEVATIONS OF EXISTING TOPOGRAPHY AND UTILITIES AS SHOWN ON THIS PLAN ARE APPROXIMATE. CONTRACTORSHALL FIELD VERIFY SITE CONDITIONS AND UTILITY LOCATIONS PRIOR TO EXCAVATION/CONSTRUCTION. THE ENGINEER SHALL BENOTIFIED IMMEDIATELY IF ANY DISCREPANCIES ARE FOUND.2. CONTRACTORS SHALL REFER TO ARCHITECTURAL PLANS FOR EXACT LOCATIONS AND DIMENSIONS OF VESTIBULE, SLOPED PAVEMENT,EXIT PORCHES, RAMPS, TRUCK DOCKS, PRECISE BUILDING DIMENSIONS, EXACT BUILDING UTILITY ENTRANCE LOCATIONS, AND EXACTLOCATIONS AND NUMBER OF DOWNSPOUTS.3. ALL EXCAVATION SHALL BE IN ACCORDANCE WITH THE CURRENT EDITION OF "STANDARD SPECIFICATIONS FOR TRENCH EXCAVATIONAND BACKFILL/SURFACE RESTORATION" AS PREPARED BY THE CITY ENGINEERS ASSOCIATION OF MINNESOTA.4. ALL DISTURBED UNPAVED AREAS ARE TO RECEIVE SIX INCHES OF TOPSOIL AND SOD OR SEED. THESE AREAS SHALL BE WATERED UNTILA HEALTHY STAND OF GRASS IS OBTAINED. SEE LANDSCAPE PLAN FOR PLANTING AND TURF ESTABLISHMENT.5. THE CONTRACTOR SHALL BE RESPONSIBLE FOR PROVIDING AND MAINTAINING TRAFFIC CONTROL DEVICES SUCH AS BARRICADES,WARNING SIGNS, DIRECTIONAL SIGNS, FLAGMEN AND LIGHTS TO CONTROL THE MOVEMENT OF TRAFFIC WHERE NECESSARY.PLACEMENT OF THESE DEVICES SHALL BE APPROVED BY THE ENGINEER PRIOR TO PLACEMENT. TRAFFIC CONTROL DEVICES SHALLCONFORM TO APPROPRIATE MNDOT STANDARDS.6. ALL SLOPES SHALL BE GRADED TO 3:1 OR FLATTER, UNLESS OTHERWISE INDICATED ON THIS SHEET.7. CONTRACTOR SHALL UNIFORMLY GRADE AREAS WITHIN LIMITS OF GRADING AND PROVIDE A SMOOTH FINISHED SURFACE WITHUNIFORM SLOPES BETWEEN POINTS WHERE ELEVATIONS ARE SHOWN OR BETWEEN SUCH POINTS AND EXISTING GRADES.8. SPOT ELEVATIONS SHOWN INDICATE FINISHED PAVEMENT ELEVATIONS & GUTTER FLOW LINE UNLESS OTHERWISE NOTED.PROPOSED CONTOURS ARE TO FINISHED SURFACE GRADE.9. SEE SOILS REPORT FOR PAVEMENT THICKNESSES AND HOLD DOWNS.10. CONTRACTOR SHALL DISPOSE OF ANY EXCESS SOIL MATERIAL THAT EXISTS AFTER THE SITE GRADING AND UTILITY CONSTRUCTION ISCOMPLETED. THE CONTRACTOR SHALL DISPOSE OF ALL EXCESS SOIL MATERIAL IN A MANNER ACCEPTABLE TO THE OWNER AND THEREGULATING AGENCIES.11. CONTRACTOR SHALL PROVIDE A STRUCTURAL RETAINING WALL DESIGN CERTIFIED BY A LICENSED PROFESSIONAL ENGINEER.12. ALL CONSTRUCTION SHALL CONFORM TO LOCAL, STATE AND FEDERAL RULES INCLUDING THE NATIONAL POLLUTANT DISCHARGEELIMINATION SYSTEM (NPDES) PERMIT REQUIREMENTS.13. PRIOR TO PLACEMENT OF ANY STRUCTURE OR PAVEMENT, A PROOF ROLL, AT MINIMUM, WILL BE REQUIRED ON THE SUBGRADE.PROOF ROLLING SHALL BE ACCOMPLISHED BY MAKING MINIMUM OF 2 COMPLETE PASSES WITH FULLY-LOADED TANDEM-AXLE DUMPTRUCK, OR APPROVED EQUAL, IN EACH OF 2 PERPENDICULAR DIRECTIONS WHILE UNDER SUPERVISION AND DIRECTION OF THEINDEPENDENT TESTING LABORATORY. AREAS OF FAILURE SHALL BE EXCAVATED AND RE-COMPACTED AS SPECIFIED HEREIN.14. EMBANKMENT MATERIAL PLACED BENEATH BUILDINGS AND STREET OR PARKING AREAS SHALL BE COMPACTED IN ACCORDANCEWITH THE SPECIFIED DENSITY METHOD AS OUTLINED IN MNDOT 2105.3F1 AND THE REQUIREMENTS OF THE GEOTECHNICAL ENGINEER.15. EMBANKMENT MATERIAL NOT PLACED IN THE BUILDING PAD, STREETS OR PARKING AREA, SHALL BE COMPACTED IN ACCORDANCEWITH REQUIREMENTS OF THE ORDINARY COMPACTION METHOD AS OUTLINED IN MNDOT 2105.3F2.16. ALL SOILS AND MATERIALS TESTING SHALL BE COMPLETED BY AN INDEPENDENT GEOTECHNICAL ENGINEER. EXCAVATION FOR THEPURPOSE OF REMOVING UNSTABLE OR UNSUITABLE SOILS SHALL BE COMPLETED AS REQUIRED BY THE GEOTECHNICAL ENGINEER. THECONTRACTOR SHALL BE RESPONSIBLE FOR COORDINATING ALL REQUIRED SOILS TESTS AND INSPECTIONS WITH THE GEOTECHNICALENGINEER.GRADING & DRAINAGE NOTESCONSTRUCTION PLANS1. BASIN EXCAVATION AND PIPE INSTALLATION MAY TAKE PLACE BEFORE CURB INSTALLATION. ALL OTHER BASIN CONSTRUCTION MUSTWAIT UNTIL FINAL SITE LANDSCAPING. REMOVE SEDIMENT FROM EXCAVATED BASIN PRIOR TO PLACEMENT OF FILTER MEDIA. PLACESAND BAGS OR SIMILAR ITEM IN CURB CUTS TO PRE-FILTER STORM WATER UNTIL PLANTS ARE ESTABLISHED IN BASINS. MAINTAININLET PROTECTION ON DOWN STREAM INLETS UNTIL BASINS ARE ON-LINE.2. BASIN EXCAVATION SHALL BE WITH TOOTHED-BUCKETS TO SCARIFY THE BOTTOM.3. PLACE SILT FENCE AROUND BASINS AS SHOWN IMMEDIATELY AFTER BASIN CONSTRUCTION.4. BASINS MUST BE TESTED FOR INFILTRATION RATE AFTER TOTAL SITE STABILIZATION. A DUAL RING INFILTROMETER SHALL BE USED FORTESTING. MINIMUM INFILTRATION RATE IS 1-INCH PER HOUR. IF BASIN DOES NOT MEET INFILTRATION RATE, CONTRACTOR MUSTTAKE CORRECTIVE ACTION UNTIL MINIMUM INFILTRATION RATE IS MET. CORRECTIVE ACTION MAY INCLUDE REMOVING PLUG INDRAIN TILE. ALL TESTING AND CORRECTIVE ACTION SHALL BE THE RESPONSIBILITY OF THE CONTRACTOR, AND SHALL BE INCIDENTALTO THE CONTRACT, WITH NO DIRECT COMPENSATION MADE.5. NO EQUIPMENT OR MATERIAL STORAGE, OTHER THAN CHAMBERS, WILL OCCUR IN THE INFILTRATION AREA.FILTRATION/INFILTRATION BASIN NOTESPROPERTY LINE982980POND NORMAL WATER LEVELRIDGE LINETOP AND BOTTOM OF RETAINING WALLEMERGENCY OVERFLOWSB-19SOIL BORING LOCATIONSTOSTORM SEWERDRAIN TILEWATER MAINSANITARY SEWEREXISTINGPROPOSEDINDEX CONTOURINTERVAL CONTOUR982980WATSANSPOT ELEVATIONFLOW DIRECTIONSB-19RETAINING WALLGRADING LIMITSGLCURB AND GUTTERFLARED END SECTION (WITH RIPRAP)GRADING LEGEND0.00%900.00900.00E.O.F.TW=XXX.XXBW=XXX.XXSHEET NUMBER:VERTICAL SCALE:DATE:PREPARED FOR:OFHORIZONTAL SCALE:DRAWN:CHECKED:DESIGNED:INITIAL ISSUE:REVISIONS:Phone :hLWeZaWer 'rLYe 6XLWe Fax 0LnneWonNa 01 Toll Free DATE:LICENSE NO.I HEREBY CERTIFY THAT THIS PLAN WAS PREPARED BY MEOR UNDER MY DIRECT SUPERVISION AND THAT I AM ADULY LICENSED PROFESSIONAL ENGINEER UNDER THE LAWSOF THE STATE OF MINNESOTA055964004/30/24THOMAS D. DESUTTERP.O. BOX 727WAITE PARK, MN 56387CRYSTAL HOUSING GROUP, LLCCRYSTAL, MINNESOTA5240 APARTMENTSPROJECT NUMBER: 0035789.00GRADING PLAN1404/30/245240 APARTMENTS N:\0035789.00\DWG\CIVIL\0035789.00C-GD01.DWG © 2022 Westwood Professional Services, Inc.Common Ground AllianceCall 48 Hours before digging:811 or call811.comSWALEFLOW THRUCURB (TYP.)1. FINAL GRADING WILL PROVIDE WATER DRAINAGE AWAY FROM WALLS, WINDOWS AND ROOFS BY PROVIDING WEATHER-RESISTANTBARRIER; FLASHING AND MASONRY FLASHING/WEEP HOLES AND DRIP EDGE AND WALL/ROOF INTERSECTION FLASHING.GREEN COMMUNITIES NOTESDRAINAGESWALE (TYP.)FLOW THRUCURB (TYP.)SEE ENLARGED GRADING PLANENLARGED GRADING PLAN (1"=10')SAWCUT (TYP.)MATCH EXISTING GRADE139 03/31/23 ASI#03 - MN DOLI COMMENTS06/15/23 ASI#04 - ADA & CURB REVISION04/30/24 ASI#08 - SPORT COURT ADDITION08/24/23 ASI#05 - GENERATOR RELOCATION02/22/24 ASI#07 - UTILITY REVISIONS101112135' CURB TRANSITION(TYP.)9' CURB TRANSITION(TYP.)8.5 80.0080.00 W. BROADWAY (CO. RD. 8)1 0 1 0 2 0FO CSSWAT WAT X X X X X X X X X X X X X X XXXXXXXXXXXXXXXXXXXSANSANSANSANSANSANSANSANSANSANSANSANSANWATWATWATWATWATWATWATWATWATWATWATWATWATWATSAN STOSTOSTOSTOSTOSTOSTOSTOSTOSTOSTOSTOSTOSTOSTOSTOSTOSTO STOSTOP O H P O H P O H P O H P O H P O H P O HPOH POHPOH POHPOHPOHPOHPOHPOHPOHPOHPOHPOHPOHPOHPOHPOHPOH POHPOHPOHPOHPOHPOHPOHOWNER: MATTALLIE LLCOWNER: CRYSTAL PROP OWNER LLCOWNER: SUESCO INCOWNER: SUESCO INCOWNER: VT PROPERTIES LLC(80 FT. WIDE DEDICATEDPUBLIC RIGHT OF WAY)872 8 7 2 8 7 4 870 ACACACGT X XXXXX X XX XXXXX XLANDSCAPEROCK 1-ABS3-REO3-NOS2-AUS7-BHS2-SKH4-ABH2-QUASODSOD13-CAV26-KFG15-VGC2-ABH1-TEA4-TAY8-ABH15-KFG11-ABH4-BVL1-TEA16-HOS11-KFG5-TAY7-GLS1-ABS3-ABH10-ASD4-KFG5-TAY2-ABS3-NFS4-KFG19-HOS3-NFS8-ABH8-ASD4-KFG8-TAY4-KFG5-ABH1-TEA13-SBA6-SWG10-ABH1-TEA16-ASD3-IBC3-SWG2-IBC7-SWG76-KFG13-ASD13-ASD4-KFG4-KFG8-CAV4-KFGLANDSCAPEROCKBLACK ORNAMENTAL FENCE(SEE ARCH. PLANS)TOT LOT(SEE ARCH. PLANS)FENCE(SEE ARCH. PLANS)42-ASD24-NFS6-IBC3-NFSSOD3-NFS28-SBASODSODSODSODSOD2-TEA5-GLS48-GLS1-TEA1-TEA4-TAY5-ABH1-TEA2-TAY1-TEA6-ABH1-TEA4-ASD2-TAY1-TEA6-ABH20-KFGSHREDDED CEDARWOOD MULCH22-GLS1-PRE1-PRE3-CSO4-ABH22-ASD22-ASD1-ABS26-SBA19-HOS14-ASD13-MEJ1-SKH1014N:\0035789.00\DWG\CIVIL\0035789.00L-PL01.DWG...06/14/225377404/30/24NICHOLAS T. MEYERCONSTRUCTION PLANSCommon Ground AllianceCall 48 Hours before digging:811 or call811.com20'4' OR 2'0'20'40'60'1" = 20'LANDSCAPING REQUIRED: 11 TREES* ONE OVERSTORY TREE PER EVERY 30 FEET OF LOT FRONTAGE* TOTAL = 308 LF / 30 LF = 11 OVERSTORY TREES REQUIRED* SHRUBS REQUIRED AROUND BUILDING FOUNDATION ALONG FRONTAGE STREET* MINIMUM REQUIRED: SHRUBS ALONG FRONT SIDE* PROVIDED: SHRUBS/PERENNIALS AROUND THE ENTIRE BUILDING FOUNDATION* 5% OF GROSS AREA OF THE PARKING LOT SHALL BE LANDSCAPED*27,422 SF. PARKING LOT x 5% = 1,371 SF. OF LANDSCAPING REQUIRED* 2,454 SF. OF LANDSCAPING PROVIDED* LANDSCAPE BUFFER REQUIRED BETWEEN BACK OF PARKING LOT AND REAR LOT LINE* MINIMUM REQUIRED: SOD OR TURF GRASS* PROVIDED: 20 EVERGREEN TREES* PARKING LOT INTERIOR: LANDSCAPED ISLANDS MIN. 9' WIDTH AT NARROWEST DIMENSION* 12'-10" PROVIDED* PARKING LOT INTERIOR: AREAS NOT COVERED BY TREE CANOPY MUST BE COVERED BY SHRUBS, GRASS, GROUND COVER, LANDSCAPE GRAVEL, OR MULCH.* PROVIDED: ROCK MULCH, GRASS, & SHRUBSTOTAL LANDSCAPING PROVIDED: 58 TREES* OVERSTORY DECIDUOUS TREES 14 TREES* OVERSTORY EVERGREEN TREES 37 TREES* ORNAMENTAL TREES 7 TREES* PARKING LOT LANDSCAPED 1,818 SF. MULTI FAMILY LANDSCAPE REQUIREMENTSLANDSCAPE PROVISIONSCOMMON/BOTANICAL NAMESIZESPACING O.C.Red Oak / Quercus rubraAS SHOWNQuaking Aspen / Populus tremuloidesAS SHOWN6' HT., BBBlack Hills Spruce / Picea glauca densataAS SHOWNNorway Spruce / Picea abiesAS SHOWNPrinceton Elm / Ulmus americana 'Princeton'AS SHOWNBoulevard Linden / Tilia americana 'Boulevard'AS SHOWNMATURE SIZEH 50'-70' W 50'-70'H 40'-60' W 20'-30'H 30'-40' W 20'-30'H 60'-80' W 25'-30'H 60' W 40'-50'H 60'-70' W 30'-40'SYMBOLOVERSTORY EVERGREEN TREES - 37ORNAMENTAL TREES - 7OVERSTORY DECIDUOUS TREES - 142" BBAutumn Brilliance Serviceberry / Amelanchier x grandiflora 'Autumn Brilliance'AS SHOWNH 30'-40' W 15'-20'ABBREVIATIONS: B&B = BALLED AND BURLAPPED CAL. = CALIPER HT. = HEIGHT MIN. =MINIMUMO.C. = ON CENTER SP. = SPREAD QTY .= QUANTITY CONT. = CONTAINERNOTE: QUANTITIES ON PLAN SUPERSEDE LIST QUANTITIES IN THE EVENT OF A DISCREPANCY. PLANT SCHEDULESkyline Honeylocust / Gleditsia tricanthos var. inermis 'Skycole'AS SHOWNH 50' W 30'-35'GROUNDCOVER SCHEDULE3"-6" RIVER ROCK MULCH(ALL PLANTING BEDS)2" BB2" BB2" BB10' HT. BB, CLUMP 2" BB6' HT., BB* ALL DISTURBED AREAS TO BE SODDED UNLESS NOTEDOTHERWISE.*ALL MULCH RINGS AROUND TREES AND BOULEVARDPLANTING AREAS TO BE SHREDDED CEDAR WOODMULCHSHEET NUMBER:VERTICAL SCALE:DATE:PREPARED FOR:OFHORIZONTAL SCALE:DRAWN:CHECKED:DESIGNED:INITIAL ISSUE:REVISIONS:Phone :hLWeZaWer 'rLYe 6XLWe Fax 0LnneWonNa 01 Toll Free DATE:LICENSE NO.I HEREBY CERTIFY THAT THIS PLAN WAS PREPARED BY MEOR UNDER MY DIRECT SUPERVISION AND THAT I AM ADULY LICENSED LANDSCAPE ARCHITECT UNDER THE LAWSOF THE STATE OF MINNESOTAP.O. BOX 727WAITE PARK, MN 56387CRYSTAL HOUSING GROUP, LLCCRYSTAL, MINNESOTA5240 APARTMENTSPROJECT NUMBER: 0035789.00LANDSCAPE PLAN04/30/245240 APARTMENTS N:\0035789.00\DWG\CIVIL\0035789.00L-PL01.DWG © 2022 Westwood Professional Services, Inc.BVLREOPRESKHBHSNOSQUAABSSYMBOL LEGENDOVERSTORY DECIDUOUSTREESOVERSTORY CONIFEROUSTREESORNAMENTALTREESAustrian Pine / Pinus nigraAS SHOWNH 50'-60' W 30'-40'6' HT., BBAUS4QTY.223732251. TREE LOCATIONS AND SPACING ARE SUBJECT TO CHANGE BASED ON CONSTRUCTED PARKING LOT,SIDEWALK, AND UTILITY LOCATIONS.2. PARKING LOT TREES SHALL BE PLANTED 5' FROM BACK OF CURB IN A LOCATION THAT DOES NOTINTERFERE WITH CURBSTOPS OR INDIVIDUAL SEWER & WATER CONNECTIONS.3. STREET TREES SHALL BE PLANTED 7' FROM BACK OF SIDEWALK IN A LOCATION THAT DOES NOT INTERFEREWITH INDIVIDUAL SEWER, WATER CONNECTIONS, AND EASEMENTS.4. NO PLANTING WILL BE INSTALLED UNTIL ALL GRADING AND CONSTRUCTION HAS BEEN COMPLETED INTHE IMMEDIATE AREA.5. DECIDUOUS TREES SHOULD BE LOCATED A MINIMUM OF 5' OFF ANY UTILITY PIPE AND CONIFEROUSTREES TREES SHOULD BE LOCATED A MINIMUM OF 15' OFF ANY UTILITY PIPE.6. NO TREE SHOULD BE LOCATED WITHIN 10' OF A HYDRANT OR 15' FROM A STREETLIGHT.7. NO DECIDUOUS TREE WITHIN 5' OF A SIDEWALK OR TRAIL AND NO CONIFEROUS TREES WITHIN 20' OF A PROPOSED SIDEWALK OR TRAIL.8. ALL LANDSCAPED AREAS SHALL BE IRRIGATED WITH A DRIP LINE OR SPRAY SYSTEM AS APPROPRIATE FOR THE PROPOSED PLANTINGS IN THE SPECIFIC AREA. LANDSCAPED BOULEVARD ALONG BROADWAY AVENUE TO BE INCLUDED IN THE IRRIGATION SYSTEM.9. MECHANICALS TO BE SCREENED WITH ADEQUATE VEGETATION.Vintage Gold Chamaecyparis / Chamaecyparis pisifera 'Vintage Gold'4'-0" O.C.CONIFEROUS SHRUBS - 45#5 Cont.VGC15Gro-Low Fragrant Sumac / Rhus aromatica 'Grow Low'6'-0" O.C.DECIDUOUS SHRUBS - 222#5 Cont.GLS82Karl Foerster Grass / Calamagrostis x acutiflora 'Karl Foerster'30" O.C.PERENNIALS / GRASSES - 477#1 Cont.KFG176SAND GENERAL NOTES:1. NEW TREES ARE TO BE 2" IN DIAMETER AT BREAST HEIGHT OR 4.5' ABOVE GRADE.2. SOD SHALL BE IRRIGATED.3. SEE MECHANICAL AND ELECTRICAL PLANS AND SPECIFICATION FOR IRRIGATION WATER, METER, ANDPOWER CONNECTIONS. SITE IRRIGATION SHALL INCLUDE THE BOULEVARD IF APPLICABLE.4. SUB-CONTRACTOR SHALL SUBMIT IRRIGATION SHOP DRAWINGS TO THE ARCHITECT FOR REVIEW ANDAPPROVAL PRIOR TO INSTALLATION.5. SUB-CONTRACTOR TO VERIFY LOCATION OF ALL UNDERGROUND & ABOVE FACILITIES PRIOR TO ANYEXCAVATION OR INSTALLATION. ANY DAMAGE TO UNDERGROUND & ABOVE GROUND FACILITIES SHALLBE THE RESPONSIBILITY OF THE CONTRACTOR AND ALL COSTS ASSOCIATED WITH THE REPAIR ORREPLACEMENT SHALL BE BORNE ENTIRELY BY THE SUB-CONTRACTOR.Taunton Yew / Taxus x media 'Taunton'4'-0" O.C.#5 Cont.TAY30Iroquois Beauty Chokeberry / Aronia melanocarpa 'Morton'4'-0" O.C.#5 Cont.IBC11Incrediball Hydrangea / Hydrangea arborescens 'Abetwo'4'-0" O.C.#5 Cont.ABH72Shenandoah Switch Grass / Panicum virgatum 'Shenandoah'30" O.C.#1 Cont.SWG 1624" O.C.#1 Cont.HOS 54Summer Beauty Allium / Allium tanguticum 'Summer Beauty'18" O.C.#1 Cont.SBA67Apricot Sparkles Daylily / Hemerocallis 'Apricot Sparkles'18" O.C.#1 Cont.ASD164Technito Arborvitae / Thuja occidentalis 'Bailjohn'AS SHOWNH 8'-10' W 4'-5'6' HT., BBTEA12Neon Flash Spirea / Spiraea japonica 'Neon Flash'3'-0" O.C.#5 Cont.NFS36Compact American Viburnum / Viburnum trilobum 'Bailey Compact'5'-0" O.C.#5 Cont.CAV21GENERAL NOTESMedora Juniper / Juniperus scopulorum 'Medora'#10 Cont.MEJ13Crimson Spire Oak / Quercus x bimundorum 'Crimschmidt'AS SHOWNH 40'-50' W 15'-20'2" BBCSO3H 10'-12' W 3'-4'AS SHOWNGuacamole Hosta / Hosta 'Guacamole'131313139 03/31/23 ASI#03 - MN DOLI COMMENTS06/15/23 ASI#04 - ADA & CURB REVISION04/30/24 ASI#08 - SPORT COURT ADDITION08/24/23 ASI#05 - GENERATOR RELOCATION02/22/24 ASI#07 - UTILITY REVISIONS101112138.5 ACACACXXXXX X XXXX 5240 APARTMENTs4 story - 58 UNITS52 underground parking stallsf.f.e.: 875.0 = 100'-1"Gar. F.F.E.: 864.0 = 89'-0"64 surface parking stallsWEST BROADWAY AVENUE84'-4"24'-0"drainage easement- see civilproperty lineright of wayeasementproperty linedrainage easement- see civilproperty lined.p.drainage easement- see civilproperty line20'-9"11'-10"existing sidewalk n.i.c.existing sidewalkn.i.c.transformerlocation- SEE elec.t.p.backup generatorpad- see elec.= ACCESSIBLE PARKING SIGN - SEE CIVIL DRAWINGSNOTES#1- SEE CIVIL FOR PARKING PAVEMENT SECTIONS= EXTERIOR LIGHT FIXTURES - SEE ELECTRICAL= HEATED CONC. SLAB - BY ALTERNATE#2= ACCESSIBLE VAN PARKING SIGN - SEE CIVIL DRAWINGS- SEE LANDSCAPE PLANS FOR ALL INFO PERTAINING TO SITE LANDSCAPE= security camera - SEE ELECTRICAL - see rcp sheetsfacing direction= property line= property setback lines= area not in contract (N.I.C.)overall site impervious area CalculationSite: 1.76 acres = 76,944 sqftBuilding footprint including patios = 19,936 SQFTAll Site pavements = 54,955 SQFT (71.4%)total pervious area = 21,989 sqftTotal parking green space = 2,454 sqft (8.9%)OVERALL SITE CALCULATIONExisting Residential density = 3.3 units per acrerequired 25-50 units per acre+ 1.76 acres x 25 = 44 units min+ 1.76 acres x 50 = 88 units max58 units providedrequired parking58 units x 2 Parking stalls = 116 parking stalls requiredProvided parking64 surface parking stalls OF WHICH 3 ARE ACCESSIBLE52 underground parking stalls of which 3 are accessibleno on street parking 116 total parking stalls OF WHICH 6 ARE ACCESSIBLENOTE: PROOF OF PARKING INDICATED ON OVERALL SITE PLANGENERAL site and landscape NOTES1. Exterior camera locations and mounting height to be verified with sand development andi.t. groups prior to installation. camera locations shown for reference only. forlocations and mounting heights, refer to rcp plan on sheet A-6.02. all camera wires run above hard lid ceilings - to be protected with emt conduit. eachend of conduit to be sealed by camera installer.3. rock mulch at building parameter to consist of 3"-6" washed natural rock, see spec.4. Light poles located near curb lines are to be installed with the face of the conc. pier3'-0" min. from back of curb5. light poles located in parking areas to be centered between parking stalls, typ.6. finished grade at building to be 11" below finished floor U.N.O.7. drainage is to be provided at tot lot area- Option 1: preferred method is an internal drain with positive slope to be connected tounderground storm line.- Option 2: provide positive drainage to lowest corner of tot lot area, and a 6" drainageslot in curb8. all c.i.p. cold joints are to be pinned in an effort to minimize movement+7.44"6'-0" TYP.NOTE:COURSE BROOM FINISH IN SLOPED AREA6'-0"SLOPEMAX. 1:20SLOPEMAX. 1:20SLOPE MAX. 1:50 indicates relative elev. from conc.- see civil for sidewalk elevationscurb10'-0"+4.44"+1.44"+0"+3"+6"+1.44"10'-0"+.48"+.48"+0"SLOPEMAX. 1:20SLOPEMAX. 1:20SLOPE MAX. 1:50 SLOPE MAX. 1:50 2'-0"+4.44"+3"+7.44"+6"+0"+3"+6"+0"+3"+6"10'-0"6'-0"10'-0"PARKING LOT PAVING- SEE CIVILCURB FACETRUNCATED DOOM INLAYas req'd8'-0"VERIFY W/ LOCAL CODE8'-0"VERIFY W/ LOCAL CODE8'-0"VERIFY W/ LOCAL CODECUT LINECUT LINE35'-0"EDGE OF SLAB TO EDGE OF SLABmodular athleticsurface over c.i.p.conc. pad- TAPERED EDGEFIXED HT. basketballequipment- solid slam 60" x 36" glass backboard- DOUBLE RIM HOOP W/ CHAIN NET20" x 48" dia. sano-tubeto be provided foranchoring of basketballhoop- f.e. of sano-tube to match f.e. of play surface, verify- for anchoring requirements refer to installation instructions25'-0" EDGE OF SLAB TO EDGE OF SLAB galvanized chain link fence- 7'-0" from top of curb to top rail- all sides of sport court- install 6" from edge of slab min.slope 1/8" / ft. slope 1/8" / ft.4'-0"PROPERTY LINEVERIFYconcrete infill- see civilremove and repairexisting curb andgutter, see civilexisting curb andgutter, see civil- coordinate cut line with field conditionsexisting parking area- cut and patch as needed, see civil18'-65 8" 2'-0"EXISTING STORM WATER PIPE- SEE CIVILNEW CURB AND GUTTER- see civilVERIFY setback LINEdrainage easementdrainage easementsetback lineproperty easementarea of sportcourt = 875 sqft6'-0"existing curb andgutter, see civil- coordinate cut line with field conditionsNEW curb and gutter- see civilsports court access- to be accessibleremove (1) existing stall,relocate (1) existing stall- coordinate cut line with field conditionsBACK OF CURBexisting structure- see civil(4) 6" PIPE BOLLARDS- 5' O.C. TYP.- MIN. 3" CLEARANCE AT BACK OF CURB- PAINT SAFETY YELLOWEXISTING STORM WATER- SEE CIVILEXISTING STORM WATER- SEE CIVILexisting structure- see civilA-1.1OVERALL SITE PLANBRADLEY D. HAROLDSON#2185809-29-20223100-103-21ajb/ZLO/SMSBDHXX-XX-XX366 South Tenth AvenuePO Box 727Waite Park, MN 56387-0727Office: (320) 202-3100Fax: (320) 202-3139Website: www.SandCompanies.comE-Mail: Architects@SandCompanies.comI HEREBY CERTIFY THAT THIS PLAN, SPECIFICATION OR REPORTWAS PREPARED BY ME OR UNDER MY DIRECT SUPERVISION &THAT I AM A DULY LICENSED ARCHITECT UNDER THE LAWS OFMINNESOTA.THESE DRAWINGS AND SPECIFICATIONS ARE THE SOLE PROPERTYOF SAND ARCHITECTS, LLC ANY REPRODUCTION OR REUSE OFTHESE DOCUMENTS IS FORBIDDEN WITHOUT WRITTEN PERMISSIONFROM SAND ARCHITECTS, LLC.SIGNATURE: __________________________________TYPED OR PRINTED NAME:LICENSE NO.:DATE:PROJECT NO.:DRAWN BY:CHECKED BY:DATE ISSUED FORCONSTRUCTION:CRYSTAL, MN5240APARTMENTS5240 WESTBROADWAY AVE.PRINT LOGREVISiON/DATE/COMMENTS06-14-22city submittal06-23-2230% draft07-12-22city resubmittal07-12-22city resubmittal07-21-2275% draft08-25-2290% Draft09-08-22100% REview set09-29-22BID / PERMIT SETSCALE:Overall Site Plan1" = 30'01A-1.1Ntrue1.76 acresSCALE:Accessible Parking Ramp at Sidewalk1/4" = 1'-0"02A-1.11108-24-23ASI #051TBDASI #08-DRAFTSCALE:Enlarged Sport Court Area1/8" = 1'-0"03A-1.1A-1.1032222225/3/2024 10:06:36 AM, AJBrevik 8.5 = ACCESSIBLE PARKING SIGN - SEE CIVIL DRAWINGSNOTES#1- SEE CIVIL FOR PARKING PAVEMENT SECTIONS= EXTERIOR LIGHT FIXTURES - SEE ELECTRICAL= HEATED CONC. SLAB - BY ALTERNATE#2= ACCESSIBLE VAN PARKING SIGN - SEE CIVIL DRAWINGS- SEE LANDSCAPE PLANS FOR ALL INFO PERTAINING TO SITE LANDSCAPE= security camera - SEE ELECTRICAL - see rcp sheetsfacing direction= property line= property setback lines= area not in contract (N.I.C.)GENERAL site and landscape NOTES1. Exterior camera locations and mounting height to be verified with sand development andi.t. groups prior to installation. camera locations shown for reference only. forlocations and mounting heights, refer to rcp plan on sheet A-6.02. all camera wires run above hard lid ceilings - to be protected with emt conduit. eachend of conduit to be sealed by camera installer.3. rock mulch at building parameter to consist of 3"-6" washed natural rock, see spec.4. Light poles located near curb lines are to be installed with the face of the conc. pier3'-0" min. from back of curb5. light poles located in parking areas to be centered between parking stalls, typ.6. finished grade at building to be 11" below finished floor U.N.O.7. drainage is to be provided at tot lot area- Option 1: preferred method is an internal drain with positive slope to be connected tounderground storm line.- Option 2: provide positive drainage to lowest corner of tot lot area, and a 6" drainageslot in curb8. all c.i.p. cold joints are to be pinned in an effort to minimize movementACACACXXXXXX XXXX XXXX X64 SURFACE PARKING STALLS095240 APARTMENTs4 story - 48 UNITS52 underground parking stallsf.f.e.: 875.0 = 100'-1"Gar. F.F.E.: 864.0 = 89'-0"9'-0"TYP.1 8 ' -0 " T Y P . 40 ' -0 "WEST BROADWAY AVENUE6' -0 " T Y P .071008101010DUMPSTER PAD- 4" CURB 3 SIDES- SLOPE TO BACK OF PAD- PROVIDE (2) 4" DRAINAGESLOTS AT LOW ENDCONCRETE GARBAGETRUCK ISOLATION PAD(8" heavy duty conc. pad)light pole (typ)- SEE DETAIL:9 place bike racktransformerlocation- SEE elec.RETAINING WALL- SEE CIVILtyp. bollard- see detail:trench drain- connect to int. sumb basin, to be drained to underground stormwater vaultsplit rail cedar guardrail- top rail to be 42" abv finished grade- locate guardrail in center of 24" wide rock mulch maintenance striptot lotw/ picnic areaproperty lineright of wayeasementproperty lineproperty line5' drainageeasement5' drainageeasementdrainage easementproperty linesecurity camera- see rcp plans for locations and mounting heights- see detail:8'-0"hydronic heat area #1as alternate(approximately 3014 sqft)- see detail:hydronic heat area #2as alternate(approximately 1100 sqft)- see detail:hydronic heat area #3as alternate(approximately 110 sqft)- see detail:9 place bike rackon 8'X12' padslopeTRENCH DRAIN THROUGH SIDEWALKW/ 1/4" CHECKERD GALV. PLATE- SEE DETAIL:backup generatorpad- see elec.3"1'-0"1"VARIES - 36" TO 60" FROM FACE OFBUILDING w/ SMOOTH CURVES* * SEE LANDSCAPE PLAN * *cont. landscape edgingfinish grade /sodmin. slope awayfrom building3"-6" Dia. rock mulch- see spec.weed barrierweed barrier2" MIN.note: finished grad elevations vary.see building elevations, wall sections,and details for grade conditionsand locations5"6"2"6" UNDERSLAB CUSHION2" RIGID INSUL.HYDRONIC HEAT BYBY DIV. 22 - PIPE FASTENEDTO RIGID INSUL.5" CONC. SLAB W/ #4@ 16" O.C. EACH WAYparking areatot lotequip.provide 4"drainageslot in curbconc. borderw/ (2) #5 and 1/2"radius edgesplay surfaceVERIFY W/ MANUF.VERIFY W/ MANUF.12'-0"picnic tablesbbq grill6'-0"TYP.trashrecepticleslopeslopeslope4' high alumfence - typ.9 placebike rack8" drain pipeto storm water- see civilbenchbenchA-1.2ENLARGED SITE PLANBRADLEY D. HAROLDSON#2185809-29-20223100-103-21ajb/ZLO/SMSBDHXX-XX-XX366 South Tenth AvenuePO Box 727Waite Park, MN 56387-0727Office: (320) 202-3100Fax: (320) 202-3139Website: www.SandCompanies.comE-Mail: Architects@SandCompanies.comI HEREBY CERTIFY THAT THIS PLAN, SPECIFICATION OR REPORTWAS PREPARED BY ME OR UNDER MY DIRECT SUPERVISION &THAT I AM A DULY LICENSED ARCHITECT UNDER THE LAWS OFMINNESOTA.THESE DRAWINGS AND SPECIFICATIONS ARE THE SOLE PROPERTYOF SAND ARCHITECTS, LLC ANY REPRODUCTION OR REUSE OFTHESE DOCUMENTS IS FORBIDDEN WITHOUT WRITTEN PERMISSIONFROM SAND ARCHITECTS, LLC.SIGNATURE: __________________________________TYPED OR PRINTED NAME:LICENSE NO.:DATE:PROJECT NO.:DRAWN BY:CHECKED BY:DATE ISSUED FORCONSTRUCTION:CRYSTAL, MN5240APARTMENTS5240 WESTBROADWAY AVE.PRINT LOGREVISiON/DATE/COMMENTS06-14-22city submittal06-23-2230% draft07-12-22city resubmittal07-12-22city resubmittal07-21-2275% draft08-25-2290% Draft09-08-22100% REview set09-29-22BID / PERMIT SETNtrue1.76 acresSCALE:Typ. Mulch Bed at Building1" = 1'-0"03A-1.2SCALE:HYDRONIC HEAT DETAIL1" = 1'-0"02A-1.2A-1.102(02/A-1.2)(02/A-1.2)(02/A-1.2)(05/A-1.3)A-1.203TYP.A-1.203TYP.A-1.203TYP.A-1.203TYP.SCALE:TOT LOT1/8" = 1'-0"04A-1.2A-1.204SCALE:Enlarged Site Plan1" = 20'01A-1.2A-1.302A-1.303simA-1.306A-1.306A-8.506(04/A-1.3)(11/A-11.3)(08/ A-1.3)A-1.3011108-24-23ASI #05A-1.10322tbdASI #08-draft2225/3/2024 10:06:47 AM, AJBrevik 8.5 UDC AMENDMENT – CANNABIS, ALCOHOL AND TOBACCO ___________________________________________________________________________ FROM: Dan Olson, City Planner ___________________________________________________________________________ TO: Adam R. Bell, City Manager (for June 4 Meeting) DATE: May 29, 2024 RE: Consider second reading of an ordinance adding requirements to the Unified Development Code for Cannabis, Off-Sale Liquor and Tobacco and adoption of a resolution approving summary language of the ordinance for publication A.INTRODUCTION The City Council is asked to consider second reading of an ordinance amending the city’s unified development code (UDC) to incorporate regulations related to cannabis, off-sale alcohol and tobacco sales. Notice of the May 13 public hearing was published in the Sun Post on May 2 , posted to all neighborhoods on Nextdoor, and mailed to currently licensed alcohol and tobacco businesses (see attachments B and C). The first reading of the ordinance was approved by the Council on May 21, 2024. At the June 4, 2024 City Council meeting the Council is being asked to approve second reading and adoption of the ordinance and adoption of a resolution for summary publication. Attachments: A.Proposed ordinance B.Current off-sale liquor licenses C.Current off-stale tobacco licenses D.Map of proposed land use buffers E.Resolution approving summary ordinance COUNCIL STAFF REPORT Cannabis, Alcohol and Tobacco in UDC 8.6 UDC AMENDMENT – CANNABIS, ALCOHOL AND TOBACCO B. BACKGROUND As the city prepares for the state’s eventual licensing of full cannabis shops in addition to tetrahydrocannabinol (THC) edibles, the City Council held work sessions regarding potential city code amendments. Based on Council discussion at the March 19, 2024 work session, staff has prepared a UDC amendment that would move the buffer distance requirements from the city’s THC edibles licensing ordinance to the UDC, and also apply the same buffers to off-sale alcohol and tobacco sales. C. PURPOSE AND DESCRIPTION OF PROPOSED ORDINANCE Purpose. Achieve long-term parity in locational restrictions (buffer distances) for THC edibles, off-sale alcohol and tobacco sales; and have buffers in place for whenever the city’s current THC licensing ordinance is supplanted by state licensing sometime in 2025. Note: Full cannabis shops are not yet allowed by state law, but under the proposed ordinance the city would restrict them more than THC edibles, including a cap of no more than two full cannabis shops in Crystal in addition to the buffer distances. Definitions. Several definitions would be added to section 505 of the UDC. Many of these definitions are based on language from state statutes. Land use tables. Depending on the size or scope of the cannabis, off-sale alcohol or tobacco sales, the use would be classified as either a principal or accessory use. Buffer distances. Cannabis, off-sale alcohol or tobacco sales cannot be located within 500 feet of a school, park, or residential treatment facility. Note: The term “school” does not include the Robbinsdale Transition Center at the Crystal Shopping Center which primarily serves adults. Nonconforming uses. Since the buffer distances would also apply to existing off-sale alcohol and tobacco businesses, some of those businesses would become legally nonconforming (“grandparented”) uses (attachment D). Note: Legally nonconforming (“grandparented”) means that these businesses could continue to operate but cannot expand, and if the use is discontinued for one year, then that location can no longer have an off-sale alcohol or tobacco business. Effective date. New buffer distance requirements would be added to the UDC for cannabis, off-sale alcohol and tobacco sales with an effective date of January 1, 2025. At that time, any THC edible, off -sale alcohol or tobacco sales within a buffer zone would be grandparented. 8.6 UDC AMENDMENT – CANNABIS, ALCOHOL AND TOBACCO Note: A separate ordinance removing the buffer distances from the current THC edibles licensing ordinance would be effective 30 days after publication, meaning an expected effective date of July 13, 2024. This will create a 5½ month window for any licensed off-sale alcohol and tobacco business located within a buffer to get a THC edibles license before January 1, 2025 when the UDC changes go into effect and their THC edible sales become grandparented just like their sales of off- sale alcohol and tobacco. Number of businesses to become lawfully nonconforming (“grandparented”) on January 1, 2025. Off-sale liquor. The city currently has 9 off-sale alcohol licenses (attachment B): ➢ 4 would continue to be permitted uses (black “A” on attachment D) ➢ 5 would become grandparented (gray “A” on attachment D) Tobacco. The city currently has 21 tobacco licenses (attachment C): ➢ 9 would continue to be permitted uses (black “T” on attachment D) ➢ 12 would become grandparented (gray “T” on attachment D) D. REQUESTED ACTION At the May 13, 2024 Planning Commission meeting, the Commission recommended approval of the UDC amendments by a vote of 6 to 1 (2 members were absent). The ordinance in attachment A reflects the Planning Commission recommendation and is the same ordinance the City Council approved at first reading on May 21. Anticipated schedule: June 13, 2024 Summary of ordinance published Jan. 1, 2025 * Effective date of ordinance *A separate ordinance removing THC edibles buffers from the current licensing ordinance would be effective July 13, 2024. City Council actions requested: 1. Second reading and adoption of the ordinance in attachment A 2. Adoption of the resolution in attachment E summary publication 8.6 1 CR205-30-935489.v7 CITY OF CRYSTAL ORDINANCE #2024-____ AN ORDINANCE AMENDING THE CRYSTAL UNIFIED DEVELOPMENT CODE REGARDING CANNABIS BUSINESSES, LIQUOR SALES, AND TOBACCO SALES The City of Crystal ordains: ARTICLE I. Chapter V, Section 505 of the Crystal city code is hereby amended as follows and renumbering the subdivisions as may be needed: Subd. . Cannabinoid. “Cannabinoid” has the meaning given the term in Minnesota Statutes, section 342.01, subdivision 10. Subd. _. Cannabis business. “Cannabis business” has the meaning given the term in Minnesota Statutes, section 342.01, subdivision 14. Subd. _. Cannabis product. “Cannabis product” means any product containing a cannabinoid that a registered cannabis business is authorized by its state-issued license to sell to the public at retail. Subd. _. Cannabis retailer business. “Cannabis retailer business” means a cannabis business that is a cannabis retailer, a cannabis mezzobusiness with a retail operations endorsement, or a cannabis microbusiness with a retail operations endorsement, as those terms are defined in Minnesota Statutes, section 342.01 and applicable Minnesota administrative rules. Subd. . Off-sale liquor store. “Off-sale liquor store” means a retail business licensed to sell liquor at off-sale and that derives more than 50% of its gross revenue from the sale of liquor. Subd. . Principal cannabis business. “Principal cannabis business” means a cannabis business that derives more than 50% of its gross revenue from the sale of cannabis products. Subd. . Tobacco products. “Tobacco products” means tobacco, tobacco-related devices, and electronic delivery devices as those terms are defined in Minnesota Statutes, section 609.685, subdivision 1. Subd. . Tobacco shop. “Tobacco shop” means a retail establishment licensed by the city to sell tobacco and that derives more than 50% of its gross revenue from the sale of tobacco products. ARTICLE II. Permitted Principal Uses. Chapter V, Subsection 515.17, Table 3 of the Crystal city code is hereby amended by adding additional uses as follows: Use R-1 R-2 R-3 C TC I AP Use-Specific Standards in Section: Attachment A 8.6 2 CR205-30-935489.v7 Principal Cannabis Business - - - P P P - 515.19, subdivision 4(n) Off-Sale Liquor Store - - - P P P - 1200 & 515.19, subdivision 4(o) Tobacco Shop - - - P P P - 1105 & 515.19, subdivision 4(p) ARTICLE III. Use Specific Standards for Principal Uses. Chapter V, Subsection 515.19, subdivision 4 of the Crystal city code is hereby amended as follows: (i)Retail establishments. Retail establishments are subject to the following standards: (1)Repair is allowed for a retail establishment, but a conditional use permit is required if the repair is done outdoors. The applicant shall demonstrate that such outdoor repair will not negatively impact neighboring properties; (2)Within the TC district, retail space is limited to 15,000 gross square feet per floor. Additional square footage may be allowed with a conditional use permit, not to exceed a building footprint of 20,000 square feet; (3)Within the Commercial district, retail establishments may have up to 50% of the gross floor area as storage or warehouse space; and (4)Within the Industrial district, retail establishments are limited to 50% of the gross floor area of the principal use. (5)Any retail establishment engaging in the sale at retail of any cannabis product, tobacco, or liquor at off-sale shall not be located within 500 feet of a school, public park, or residential treatment facility. The following apply for the purposes of this paragraph. (i)The distance between properties shall be measured from the closest points between the lot containing the business and the lot containing the identified use to which the buffer applies. (ii)The term “school” means a public or private facility that provides educational programs to ten or more people who are under the age of 21 in a classroom setting. The term includes, but is not limited to, any school operated by an independent school district or a charter school operating under Minnesota Statutes, chapter 124E. The term does not include the Robbinsdale Transition Center or similar adult education schools. (iii)The term “public park” means an open space, playground, athletic field, or other facility owned by the city, a school district, the county, or other public entity that is open to, and regularly used by, those under the age of 21. 8.6 3 CR205-30-935489.v7 (iv)The term “residential treatment facility” means a facility providing mental health, alcohol, or drug treatment services established or operated in accordance with Minnesota Rules, chapter 2960, or Minnesota Statutes, chapters 245G or 260C. . . . (n)Principal cannabis businesses. Principal cannabis businesses are subject to the following standards: (1)Shall comply with the standards imposed on retail establishments under Crystal city code, subsection 515.19, subdivision 4(i). (2)Shall not be located in any buffer zone identified in subdivision 4(i)(5) of this subsection. (3)Shall only be located in a zoning district in which the use is allowed, and then only upon obtaining all licenses that may be required. (4)It must be registered with the city in accordance with Minnesota Statutes, section 342.22 and the registration procedures established by the city. (5)In accordance with Minnesota Statutes, section 342.13(i), no more than two cannabis retailer businesses may be located within the city. If, however, Hennepin County has one active registration for cannabis retailer businesses for every 12,500 residents in the county, then no cannabis retailer businesses are allowed in the city and the city shall not undertake process in Minnesota Statutes, section 342.22 to register any such business. (o)Off-sale liquor stores. Off-sale liquor stores are subject to the following standards: (1)Shall comply with the standards imposed on retail establishments under subdivision 4(i) of this subsection. (2)Shall not be located in any buffer zone identified in subdivision 4(i)(5) of this subsection. (p)Tobacco shops. Tobacco shops are subject to the following standards: (1)Shall comply with the standards imposed on retail establishments under subdivision 4(i) of this subsection. (2)Shall not be located in any buffer zone identified in subdivision 4(i)(5) of this subsection. ARTICLE IV. Permitted Accessory Uses. Chapter V, Subsection 515.21, Table 4 of the Crystal city code is hereby amended by adding additional uses as follows: 8.6 4 CR205-30-935489.v7 Accessory Use R-1 R-2 R-3 C TC I AP Zoning Certificate Required Use-Specific Standards in Subsection: Retail sale of Cannabis products, Off- sale liquor, or Tobacco products - - - P P P - No See note [4] 4. The sale of cannabis products as an accessory use to a retail use is subject to standards in subsection 515.23, subdivision 2(f), the sale of liquor at off-sale as an accessory use is subject to standards in section 1200 and subsection 515.23, subdivision 2(f), and the sale of tobacco products as an accessory use is subject to standards in section 1105 and subsection 515.23, subdivision 2(f). ARTICLE V. Use Specific Standards for Accessory Uses. Chapter V, Subsection 515.23, subdivision 2 of the Crystal city code is hereby amended as follows: (f)Sale of cannabis products, off-sale liquor, and tobacco products. Any retail establishment that sells cannabis products, off-sale liquor, or tobacco products at retail as an accessory use to its principal use is subject to the following standards: (1)The sale of such products shall only be accessory to, and occur within, a retail establishment. If a retail establishment derives more than 50% of its gross revenue from the sale of any one of the products, such sales cannot be considered an accessory use and the retail establishment must obtain all permits or permissions required to sell the product as its principal use. (2)The retail establishment must possess such licenses as may be required to sell such products. (3)The sale of such products is only allowed if the lot containing the retail establishment is located outside of the buffers zones identified in Crystal city code, subsection 515.19, subdivision 4(i)(5). (4)If the retail establishment is selling cannabis products, it must be registered with the city in accordance with Minnesota Statutes, section 342.22 and the procedures established by the city. ARTICLE VI. Incorporate. City staff is authorized and directed to update the table of contents and to make such other changes as are necessary to incorporate the amendments adopted by this Ordinance into the Crystal city code. ARTICLE VII. Effective Date. This ordinance is effective on January 1, 2025. 8.6 5 CR205-30-935489.v7 BY THE CITY COUNCIL Jim Adams, Mayor ATTEST: ____________________________ Christina Serres, City Clerk Double underlined material is being added and stricken material is being deleted. First Reading: May 21, 2024 Second Reading: __________, 2024 Council Adoption:_________, 2024 Publication: Effective Date: 8.6 Black A on map (permitted under proposed ordinance) Gray A on map (grandparented under proposed ordinance) Company DBA Address 1 Missy Hope Inc. Hope Liquor 111 Willow Bend 1 Liquor Barrel Liquor Barrel 2728 Douglas Dr N 1 Mejron Investments Inc The Wine Thief & Ale Jail 3600 Douglas Dr N 1 Ashley's Liquor, Inc.Ashley's Liquor 4920 West Broadway 1 Klever Liquor Inc Klever Liquor 5120 56th Ave N 1 SuperValu, Inc Cub Wine & Spirits 5201 36th Ave N 1 Advancer Mercantile, LLC Liquor Barrel Wine & Spirits 5628 West Broadway 1 RPSM LLC Adair Liquor 6001 42nd Ave N 1 Zahid Beverage Group LLC Crystal Liquor Warehouse 6200 56th Ave N TOTAL Black A on map TOTAL Gray A on map 4 5 Current Off-Sale Alcohol Licenses Attachment B 8.6 Black T on map (permitted under proposed ordinance) Gray T on map (grandparented under proposed ordinance) Company DBA Address 1 Crystal Tobacco & Cigar Outlet Plus, Tobacco Outlet 123 Willow Bend 1 Main Grocery & Tobacco Inc Mini Grocery & Tobacco 2708 Douglas Dr N 1 Trilogy LLC Trilogy LLC 2712 Douglas Dr N 1 Liquor Barrel Liquor Barrel 2728 Douglas Dr N 1 Almsted Enterprises Inc Almsted's Fresh Market 4200 Douglas Dr N 1 Ashley's Liquor, Inc. Ashley's Liquor 4920 West Broadway 1 Himalaya LLC dba 36th Ave Smoke 36th Ave Smoke Shop 5101 36th Ave N 104 1 Klever Liquor Inc Klever Liquor 5120 56th Ave N 1 SuperValu, Inc Cub Wine & Spirits 5201 36th Ave N 1 Charles R Knaeble VFW Post #494 VFW Post #494 5222 56th Ave N 1 SuperValu, Inc Cub Foods #30124 (1601) 5301 36th Ave N 1 Northern Tier Retail LLC Speedway #4052 5359 West Broadway 1 Holiday Stationstores, LLC Holiday Stationstore #300 5410 Lakeland Ave N 1 Dark Horse Vapors Inc Dark Horse Vapery 5522 West Broadway 1 PurpleRose Cigar and Hookah PurpleRose Cigar and Hookah Shop 5530 West Broadway 1 Advancer Mercantile, LLC Liquor Barrel Wine & Spirits 5628 West Broadway 1 RPSM LLC Adair Liquor 6001 42nd Ave N 1 Tobacco 18 LLC Tobacco 18 6016 42nd Ave N 1 Zahid Beverage Group LLC Crystal Liquor Warehouse 6200 56th Ave N 1 Walgreens Co Walgreens #5883 6800 56th Ave N 1 Northern Tier Retail LLC Speedway #4187 7818 36th Ave N TOTAL Black T on map TOTAL Gray T on map 9 12 Current Tobacco Licenses Attachment C 8.6 Attachment D8.6 1 CITY OF CRYSTAL MINNESOTA RESOLUTION NO. 2024-__ RESOLUTION APPROVING SUMMARY LANGUAGE FOR PUBLICATION OF ORDINANCE NO. 2024-____ WHEREAS, the Crystal City Council adopted Ordinance No. 2024-____ “An Ordinance Amending the Crystal Unified Development Code regarding Cannabis Businesses, Liquor Sales, and Tobacco Sales” (the “Ordinance”) at its meeting held on June 4, 2024; and WHEREAS, Section 3.12 of the Crystal City Charter and Section 110.13 of the Crystal City Code indicate that ordinances approved by the City Council will be published in summary form and that the City Council is to approve the form of the summary. NOW, THEREFORE, BE IT RESOLVED, by the City Council of the City of Crystal that the following summary language is hereby approved for publication of the Ordinance: CITY OF CRYSTAL ORDINANCE #2024-____ AN ORDINANCE AMENDING THE CRYSTAL UNIFIED DEVELOPMENT CODE REGARDING CANNABIS BUSINESSES, LIQUOR SALES, AND TOBACCO SALES SUMMARY OF ORDINANCE No. 2024-___ Ordinance No. 2024-___ has been approved by the city council on June 4, 2024. A printed copy of the full text of the ordinance is available for public inspection in the office of the city clerk. The City Council adopted the above referenced ordinance amending Chapter V of the Crystal City Code to revise the unified development code to make various amendments. The amendments include, but are not limited to, adding definitions related to the identified uses, establishing certain buffer areas, limiting the number of retail cannabis businesses, and imposing requirements and other restrictions on the sale of cannabis, off-sale alcohol, and tobacco. A copy of the full text of the ordinance is available on the City’s website and by contacting the City Clerk. BE IT FINALLY RESOLVED, that the City Clerk is hereby authorized and directed to do each of the following: 1.Publish the approved summary language once in the City’s official newspaper; 2.Place a copy of this Resolution, the full text of the Ordinance, and the affidavit of publication of Attachment E 8.6 2 the summary language in the City’s ordinance book; 3. Make the full text of the Ordinance available for public inspection in the office of the City Clerk during the City’s regular business hours; 4. Incorporate the text of the Ordinance into the Crystal City Code; and 5. Post the updated Crystal City Code on the City’s website. Adopted this 4th day of June, 2024. ______________________________ Jim Adams Mayor ATTEST: _______________________________ Chrissy Serres City Clerk 8.6 ___________________________________________________________________________________ FROM: John Sutter, Community Development Director TO: Adam R. Bell, City Manager (for June 4 City Council meeting) DATE: May 29, 2024 SUBJECT: Second reading and adoption of an ordinance amending the ordinance requiring a license and imposing regulations on the retail sale of edible cannabinoid products ___________________________________________________________________________________ In 2023 the City Council adopted an edible cannabinoids licensing ordinance which included buffer distances prohibiting such sales on property within 1,000 feet of any school or 500 feet from any park or residential treatment facility. Based on subsequent City Council discussions, staff and the City Attorney prepared a package of ordinance changes that would remove the buffers from the licensing ordinance and add them to the Unified Development Code (UDC). The UDC buffers would be less restrictive, prohibiting such sales on property within 500 feet of any school, park or residential treatment facility, and also excluding the Robbinsdale Learning Center from the definition of school because it primarily serves adults. On May 13 the Planning Commission held a public hearing on the UDC amendment ordinance and recommended approval. On May 21 the Council approved first reading of the UDC amendment. If the Council approves second reading and adopts the UDC amendment on June 4, then it would go into effect on Jan. 1, 2025. The proposed ordinance removing the buffer requirements from the edible cannabinoids licensing ordinance also received first reading approval on May 21. If the Council approves second reading and adopts the licensing buffer removal ordinance on June 4, then it would be published on June 13 and go into effect on July 13. During the period from July 13-Dec. 31, 2024, there will be no buffer requirements. Currently licensed off-sale alcohol and tobacco businesses located within the UDC buffers may apply for and be granted an edible cannabinoids license before the UDC buffers take effect on Jan. 1, 2025. REQUESTED COUNCIL ACTION Approve second reading and adoption of the attached ordinance removing the buffer requirements from the edible cannabinoids licensing ordinance. COUNCIL STAFF REPORT Remove buffer requirements from edible cannabinoids licensing ordinance 8.7 CR205-30-947490.v1 CITY OF CRYSTAL ORDINANCE NO. 2024-____ AN ORDINANCE AMENDING THE ORDINANCE REQUIRING A LICENSE AND IMPOSING REGULATIONS ON THE RETAIL SALE OF EDIBLE CANNABINOID PRODUCTS The City of Crystal ordains: ARTICLE I. Buffers Removed. Section 5 of Ordinance No. 2023-05, which the City Council adopted on September 5, 2023, is hereby amended by adding the double underlined material and deleting the stricken material as follows: Section 5. Ineligible Places and Operations. The city shall not issue or renew a license under this ordinance to sell edible cannabinoid products to: (a) A business or operation that does not qualify as an eligible business under this ordinance; (b) [Reserved] A business located, or proposed to be located, on a lot that is within: (1) 1,000 feet of a school; (2) 500 feet of a residential treatment facility; or (3) 500 feet of a public park; Distance shall be measured between boundaries of the lot containing the business and the lot containing the school, treatment facility, or public park. If a lot contains both a school and a public park, the 1,000 foot distance shall apply. ARTICLE II. Effective Date. This ordinance is effective upon adoption and 30 days after publication. Adopted this ____ day of ______________ 2024. BY THE CITY COUNCIL Jim Adams, Mayor ATTEST: ____________________________ Christina Serres, City Clerk 8.7 CR205-30-947490.v1 First Reading: ____________, 2024 Second Reading: __________, 2024 Council Adoption:_________, 2024 Publication: Effective Date: 8.7 Page 1 of 3 4141 Douglas Drive North • Crystal, Minnesota 55422-1696 Tel: (763) 531-1000 • Fax: (763) 531-1188 • www.crystalmn.gov June 4, 2024 Charlie Zelle Chair Metropolitan Council 390 Robert St N St Paul MN 55101 Subject: West Broadway Jurisdictional Transfer - METRO Blue Line Extension Dear Mr. Zelle: On March 7, 2023, the Crystal City Council unanimously approved a letter to the Corridor Management Committee for the proposed METRO Blue Line Extension (“the project”). The letter described several issues related to the project including the traffic impacts from the project’s proposed lane reduction on Bottineau Blvd. (CSAH 81) and the poor condition of the parallel reliever route, West Broadway (CSAH 8) in Robbinsdale and Crystal between 42nd Ave. N. (CSAH 9) and Douglas Dr. N. (CSAH 102). Specifically, approximately 3,300 feet (0.64 mile) of West Broadway between Highway 100 in Robbinsdale and Fairview Avenue in Crystal is essentially the same rural road it was 80 years ago. It currently lacks storm sewer, stormwater treatment, curb & gutter or any sidewalk or multi-use path for non-motorized travel. Staff from Hennepin County Public Works, Robbinsdale, and Crystal met on May 11, 2023 to discuss a jurisdictional transfer of West Broadway from Hennepin County to the cities. Staff discussed the roadway condition, traffic diversion from Bottineau Blvd. due to the METRO Blue Line Extension project and the longstanding desire and policy goal of all parties for this jurisdictional transfer to occur. The main issue is the Hennepin County policy to transfer the road to the cities without providing adequate funds to reconstruct it to modern urban standards. Hennepin County has for decades received funds from the state based on this road and its condition, but has not made the investment to upgrade the road. At the May 11, 2023 meeting, the cities requested that the county provide a cost estimate for reconstruction and a jurisdictional transfer proposal to the cities. To date, Crystal has not received any information or proposed costs from Hennepin County despite repeated requests. 8.8 Page 2 of 3 In recent discussions the Crystal City Council noted that there is a direct nexus between the reduction of lanes on Bottineau Blvd. and the need for West Broadway to be a safe and fully functional urban street going forward. They also noted that Crystal contributed $2.9 million of city funds towards right- of-way acquisitions for the reconstruction and widening of Bottineau Blvd. to 6 lanes approx. 10-15 years ago. Had Bottineau Blvd. not been reconstructed to 6 lanes, then Hennepin County or the METRO Blue Line Extension would have needed to purchase that right-of-way in the next few years at property values that are at least double what they were 10-15 years ago. In approximately three months the Crystal City Council will be asked to vote on a municipal consent resolution for the project. While all members support improved public transit service in the city, the lack of progress or any meaningful response regarding West Broadway makes it difficult for the City of Crystal to consent to moving the project forward. There is still time to get a jurisdictional transfer agreement in place before that municipal consent vote, and this letter is written with the intent and hope of generating rapid progress on this issue. Please feel free to contact City Manager Adam Bell at 763.531.1140 or adam.bell@crystalmn.gov with any questions. Thank you. Sincerely yours, The Members of the Crystal City Council ____________________________________ Jim Adams Mayor ____________________________________ ____________________________________ Taji Onesirosan Forest Eidbo Council Member, Section 1 Council Member, Section 2 ____________________________________ ____________________________________ Therese Kiser John Budziszewski Council Member, Ward 1 Council Member, Ward 3 ____________________________________ ____________________________________ Traci Kamish David Cummings Council Member, Ward 2 Council Member, Ward 4 8.8 Page 3 of 3 cc: Commissioner Jeff Lunde, Hennepin County Board, District 1 Council Member Anjuli Cameron, Metropolitan Council, District 8 Corridor Management Committee, METRO Blue Line Extension Nancy Daubenberger, Commissioner, Minnesota Department of Transportation Senator Ann Rest, Minnesota Senate, District 43 Representative Cedric Frazier, Minnesota House of Representatives, District 43A Representative Mike Freiberg, Minnesota House of Representatives, District 43B Robbinsdale City Council 8.8 Please hand this form to the City Clerk before the meeting begins. 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