2024.08.01 Work Session Packet
4141 Douglas Drive North • Crystal, Minnesota 55422-1696
Tel: (763) 531-1000 • Fax: (763) 531-1188 • www.crystalmn.gov
Posted: July 26, 2024
City Council Budget Work Session Agenda
Thursday, Aug. 1, 2024
6:30 p.m.
Conference Room A
Pursuant to due call and notice given in the manner prescribed by Section 3.01 of the City
Charter, the budget work session of the Crystal City Council was held on Thursday, Aug. 1, 2024,
at ______ p.m. in Conference Room A at City Hall, 4141 Douglas Dr. N., Crystal, MN and via
Zoom. The public may attend the meeting via Zoom by connecting to it through one of the
methods identified on the Notice of Aug. 1, 2024, Budget Work Session.
I. Attendance
Council members Staff
____ Adams ____ Bell
____ Budziszewski ____ Therres
____ Cummings ____ Bursheim
____ Eidbo ____ Elholm
____ Kamish ____ Larson
____ Kiser ____ Revering
____ Onesirosan
____ Hubbard
____ Struve
____ Sutter
____ Serres
II. Agenda
The purpose of the work session is to discuss the following agenda items:
1. 2025 – 2026 budgets and preliminary levies.
2. Blue Line Extension update *
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.
4141 Douglas Drive North • Crystal, Minnesota 55422-1696
Tel: (763) 531-1000 • Fax: (763) 531-1188 • www.crystalmn.gov
Posted: July 26, 2024
CRYSTAL CITY COUNCIL
NOTICE OF AUG. 1, 2024 BUDGET WORK SESSION
NOTICE IS HEREBY GIVEN that the City Council of the City of Crystal will hold a budget work session on
Thursday, Aug. 1, 2024, at 6:30 p.m. in Conference Room A at City Hall, 4141 Douglas Dr. N., Crystal,
MN and via Zoom.
The public may attend the meeting via Zoom by connecting to it through one of the methods
identified below.
Topic: Crystal City Council Budget Work Session
Time: Aug. 1, 2024 at 6:30 p.m. Central Time (US and Canada)
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Auxiliary aids are available upon request to individuals with disabilities by calling the City Clerk at
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2025-2026 Budget
Work Session Meeting
August 1, 2024
1
Agenda
Budget Goals
Budget Timeline
2023 Accomplishments
2025 Budget impacts
2025 Significant Changes
Internal Service Funds
Property Tax levy
Utility Increases
General Fund Summary
General Fund Revenues
General Fund Expenditures
General Fund Reserves
What’s next
Council Comments and/or Questions 2
Budget Goals
Meet service demands of the community and legislative mandates while
striving for minimal impact to taxpayers.
Meet Council’s four priorities.
Provide sound financial planning for a two-year budget that ensures
continued core services.
Continue to fund future capital needs including Parks & Street
Improvements.
Provide competitive wages and benefits to attract and retain quality
people to provide effective and efficient services to our residents and
businesses.
Monitor economic challenges.3
August 1, 2024 Council work session (focus on General Fund to prepare for preliminary adoption)
August 15, 2024 Council work session for additional review (if needed)
September 3, 2024 Council to consider preliminary budget and levies
October 1, 2024 Public input meeting
October 15, 2024 Adoption of Fee schedule
November 14, 2024 Long-term plan review and other funds review (non-general funds)
November 19, 2024 Additional work session (if needed)
December 3, 2024 Council to consider final budget and levies and long-term plan
4
BUDGET TIMELINE
5
CITY HALL –ADMINISTRATION
Conducted 53 City Council Meetings/Work Sessions
Conducted preparation and training for the Presidential National Primary
election for much of latter half of 2023.
Recruited and hired 11 new employees
Continued “City Hall refresh” updates
Implemented THC/Low-Potency Cannabis Licensing (ongoing)
COMMUNITY DEVELOPMENT
Development of a new 58-unit, $11,000,000+ apartment building at 5240
West Broadway
Sale of two EDA sites for development (34xx Douglas and 4824 56th)
Performed 7 ribbon-cutting events for new businesses
2023 ACCOMPLISHMENTS
6
POLICE DEPARTMENT
Maintaining a nearly full staffed Police Department
Added Crime Analyst position –New hire starting in June 2024
Converted embedded mental health social worker to internal employee to
better serve residents and add flexibility
*14% increase in Calls For Service (37,214); *24% increase in traffic stops and 30%
increase in traffic citations issued; *19% increase in cases assigned to investigations
Significant increase in efforts on officer/employee wellness; Established Tri-City Peer
Support Team
Continued community engagement programs to build and strengthen the
relationship to build trust and legitimacy
Our Multi-Cultural Advisory Committee members continue to be ambassadors
for the PD and help us learn how to partner and collaborate with our residents
24,627+ followers on CPD Social Media
Shop with a Cop, Coffee with a Cop, Adult Education Driving Program, Back to
School Events, Bike Fair, Vehicle Fair, Wonder Woman Event, Tri-City Forum,
etc.
2023 ACCOMPLISHMENTS
7
WEST METRO FIRE-RESCUE DISTRICT
ISO conducted its review of the fire suppression capabilities of the WMFRD from
2023 data. The Public Protection Classification (PPC) improved from being a Class 3
to a Class 2. There are only 19 Class 2 departments in the state of Minnesota and
zero Class 1 departments
Took delivery and put into service four new fire engines; sold the last three of their
existing engines
Promoted 8 of the recruits that began in December of 2022 to the rank of apprentice
firefighter after they met all of their training and certification requirements
The WMFRD celebrated their 25th anniversary on July 6, 2023
2023 ACCOMPLISHMENTS
8
PARK DEVELOPMENT:
Pickleball courts with LED lighting –partially funded by a DNR Outdoor Recreation Grant
Broadway Park Redevelopment –CDBG Grant funded
Improved Disc Golf Course
New Dog Park
Welcome Park Play Area (grand opening in June 2024) –partially funded by a Hennepin Youth
Activities Grant
Significant demolition and restoration work from staff on the above projects helped to keep
construction costs down.
Bassett Creek Park Prairie and Woodland Restoration –88% and 92% respectively of the
projects funded with Outdoor Heritage Funds (state sales tax) and Environment and Natural
Resources Trust Fund (lottery funds). Great River Greening (non-profit) is overseeing the work.
Additional habitat restoration work and management planning is being funded by a
Hennepin County Natural Resources Opportunity Grant
Funding for the Crystal Cove Aquatic Center was secured from the MN state legislature and the
Hennepin Youth Activities Grant program.
Significant efforts to remove trees infested with EAB –partially grant-funded
2023 ACCOMPLISHMENTS
9
ROBUST RECREATION PROGRAMMING
Program registrations came back stronger another year after COVID impact.
Volunteerism is at an all-time high: Edible Courtyard, pickleball, and park restoration
Provided the community with over 180 lbs. of fresh produce through the Edible Courtyard
Indoor open pickleball opportunities, pickleball lessons & clinics; offered four pickleball
tournaments, helping increase the opportunities for a growing sport
Leveraged grant funding to put in an orchard at Hagemeister Pond
Worked with other communities to receive a Hennepin Co. Lifeguard Grant to increase lifeguard
training
Pool attendance increased by 1,000+; 431 participants in swim lessons (11% increase)
Educational & Social programs for adults and seniors
2023 ACCOMPLISHMENTS
10
STREET/UTILITY MAINTENANCE
Road crack-sealing to prolong pavement life
Skim paving with asphalt over bad areas to prolong pavement life
Cleared snow/ice for 11 winter storm events (2022-2023)
Removal of non-connected sidewalks
Storm water project at 61st Ave and Douglas Drive
36TH Ave. N. Street Resurfacing
Improved lift station security
2023 Utility Reconstruction
2023 ACCOMPLISHMENTS
11
Planned Increases
•Planned Capital Levy increases (PERF, Park Improvement & Street Recon): + $196,000
•Internal Service Funds (IT, Fleet, Building) Capital Reserves: + $657,000
•Planned Fund Balance Reserve increase: + $312,000 (total of $800,000 for 2025)
•Wages and Benefits: 3.25% scheduled COLA
•Health Insurance cost increase: + 8-9%
•Wage/Benefit Allocation change -City Manager-EDA/GF (from 75% to 90%): +
$38,500
Approximate Total = $1,527,500
SIGNIFICANT 2025 BUDGET IMPACTS
12
Additional Increases
•Staffing Requests:
•Add PT Police Records Tech: + $48,000 (@ $40,000 wage)
•Upgrade Facilities Supervisor –Aquatics: + $146,000 (@ $98,000 wage)
•(offset by $16,000 -seasonal manager)
•Add IT Systems Administrator= + $147,000 ($101,000 wage)
•Add Program Specialist= + $99,500 (@ $60,000 wage)
•Classification and compensation study: +$12,000
•Budgeting Software: + $36,000
•Increase to Street Maintenance: $39,000
Approximate Total= $511,500
SIGNIFICANT 2025 BUDGET IMPACTS
13
Investing in Capital Reserves
2025 increase
General Fund: $441,714
Other funds: $214,751
Internal Service Funds
Summary Revenue
2024 - 2025 2024 - 2025 2025 - 2026 2025 - 2026
2022 2023 2024 2025 2026 $ Increase % Increase $ Increase % Increase
Actual Actual Budget Proposed Proposed (Decrease)(Decrease)(Decrease)(Decrease)
Fleet $ 341,584 $ 347,391 $ 350,865 $ 671,917 $ 1,012,232 $ 321,052 91.50% $ 340,315 50.65%
Information Technology 554,792 662,510 774,792 821,280 970,556 46,488 6.00% 149,276 18.18%
City Buildings 1,467,403 1,250,000 1,482,077 1,771,002 2,177,262 288,925 19.49% 406,260 22.94%
$ 2,363,779 $ 2,259,901 $ 2,607,734 $ 3,264,199 $ 4,160,050 $ 656,465 25.17% $ 895,851 27.44%
14
PROPERTY TAX LEVY
2024
Adopted
2024
Increase
(Decrease)
2024 %
Change
2025
Proposed
2025 Increase
(Decrease)
2025 %
Change
2026
Proposed
2026 Increase
(Decrease)
2026 %
Change
General levy $ 14,818,719 $ 1,278,514 9.44 % $ 17,281,704 $ 2,462,985 16.62 %19,706,022$ 2,424,318$ 14.03 %
Capital Improvements
Police Equipment Revolving 92,211 (68,986) (42.80) 94,055 1,844 2.00 95,936 1,881 2.00
Park Improvement 882,753 141,696 19.12 997,511 114,758 13.00 1,127,187 129,676 13.00
Street Construction 529,047 144,826 37.69 608,404 79,357 15.00 699,665 91,261 15.00
Total Capital Improvements levy 1,504,011 217,536 16.91 1,699,970 195,959 13.03 1,922,788 222,818 13.11
EDA 335,172 18,972 6.00 355,282 20,110 6.00 517,987 162,705 45.80
Total levy $ 16,657,902 $ 1,515,022 10.00 % $ 19,336,956 $ 2,679,054 16.08 % $ 22,146,797 2,809,841$ 14.53 %
Fund Percent Description
Water Rate 7%Based on Utility Rate Study
Sewer Rate 7%Based on Utility Rate Study
Storm Drainage 4%Per Quarter increase
15
PROJECTED UTILITY INCREASES
16
General Fund Summary
2022 Actual 2023 Actual 2024 Adopted
2025
Proposed
Budget
2026
Proposed
Budget
Taxes and special assessments 12,516,120$ 13,459,619$ 14,924,169$ 17,346,154$ 19,770,472$
Intergovt'l 1,927,302 1,784,263 3,015,473 2,801,589 2,818,521
Charges and fees 1,889,368 2,055,188 1,859,931 2,051,045 2,070,345
Other (127,533) 305,029 71,500 105,500 105,500
Transfers in 505,214 671,433 711,601 755,888 811,620
16,710,471$ 18,275,532$ 20,582,674$ 23,060,177$ 25,576,458$
2022 Actual 2023 Actual 2024 Adopted
2025
Proposed
Budget
2026
Proposed
Budget
General government 2,424,851$ 2,304,638$ 2,747,113$ 2,730,617$ 3,114,056$
Public safety 9,082,619 9,362,715 10,377,741 10,982,021 11,918,483
Community development 735,304 822,685 854,612 856,495 927,071
Public works 3,347,968 3,691,037 3,615,761 4,603,112 5,170,826
Recreation 2,394,937 2,456,322 2,499,214 3,087,931 3,446,021
Transfers out - 20,764 488,233 800,000 1,000,000
17,985,679$ 18,658,161$ 20,582,674$ 23,060,177$ 25,576,458$
17
General Fund
Revenues
2024 - 2025 2024 - 2025 2025 - 2026 2025 - 2026
2022 2023 2024 2025 2026 $ Increase % Increase $ Increase % Increase
Actual Actual Budget Proposed Proposed (Decrease)(Decrease)(Decrease)(Decrease)
REVENUES
Taxes
Property taxes $ 12,488,689 $ 13,391,566 $14,892,219 $17,312,704 $19,737,022 $ 2,420,485 16.25% $ 2,424,318 14.00%
Special assessments and other 27,431 68,053 31,950 33,450 33,450 1,500 4.69% - 0.00%
Licenses and permits 850,953 999,910 918,460 923,545 945,545 5,085 0.55% 22,000 2.38%
Intergovernmental revenues 1,927,302 1,784,263 3,015,473 2,801,589 2,818,521 (213,884)-7.09% 16,932 0.60%
Charges for services 854,019 850,674 752,595 923,900 921,200 171,305 22.76% (2,700)-0.29%
Fines & forfeits 184,396 204,604 188,876 203,600 203,600 14,724 7.80% - 0.00%
Investment income (173,505) 256,130 47,000 75,000 75,000 28,000 59.57% - 0.00%
Miscellaneous 45,972 48,899 24,500 30,500 30,500 6,000 24.49% - 0.00%
Transfers in 505,214 671,433 711,601 755,888 811,620 44,287 6.22% 55,732 7.37%
TOTAL REVENUES $ 16,710,471 $ 18,275,532 $20,582,674 $23,060,177 $25,576,458 $ 2,477,503 12.04% $ 2,516,281 10.91%
18
General Fund
Expenditures
2024 - 2025 2024 - 2025 2025 - 2026 2025 - 2026
2022 2023 2024 2025 2026 $ Increase % Increase $ Increase % Increase
Actual Actual Budget Proposed Proposed (Decrease)(Decrease)(Decrease)(Decrease)
EXPENDITURES
General Government
Mayor and council 168,718$ 121,953$ 245,794$ $ 429,757 $ 591,322 183,963$ 74.84%161,565$ 37.59%
Administration 1,249,398 1,221,681 1,369,964 1,498,012 1,626,464 128,048 9.35%128,452 8.57%
Human resources 78,197 40,817 68,147 89,880 82,984 21,733 31.89%(6,897) -7.67%
Assessing 315,265 276,784 284,171 9,945 11,802 (274,226) -96.50%1,857 18.67%
Legal 92,781 73,416 98,090 98,345 101,653 255 0.26%3,309 3.36%
Election 68,987 22,778 115,644 19,185 76,523 (96,459) -83.41%57,338 298.88%
Finance 451,505 547,209 565,303 585,493 623,308 20,190 3.57%37,815 6.46%
Total General Government 2,424,851$ 2,304,638$ 2,747,113$ $ 2,730,617 $ 3,114,056 (16,496)$ -0.60%383,439$ 14.04%
Public Safety
Police 7,300,915 7,483,009 8,356,003$ $ 8,641,324 $ 9,367,177 285,321$ 3.41%725,854$ 8.40%
Fire 1,781,704 1,879,706 2,021,738 2,340,698 2,551,306 318,960 15.78%210,608 9.00%
Total Public Safety 9,082,619$ 9,362,715$ 10,377,741$ $10,982,021 $11,918,483 604,280$ 5.82%936,462$ 8.53%
Community Development
Total Community Development 735,304$ 822,685$ 854,612$ $ 856,495 $ 927,071 1,883$ 0.22%70,575$ 8.24%
19
General Fund
Expenditures
2024 - 2025 2024 - 2025 2025 - 2026 2025 - 2026
2022 2023 2024 2025 2026 $ Increase % Increase $ Increase % Increase
Actual Actual Budget Proposed Proposed (Decrease)(Decrease)(Decrease)(Decrease)
EXPENDITURES
Public Works
Engineering 486,431$ 507,341$ 510,773$ $ 572,382 $ 626,583 61,609$ 12.06%54,202$ 9.47%
Street Maintenance 1,387,207 1,441,141 1,499,806 1,627,173 1,805,691 127,367 8.49%178,518 10.97%
Park Maintenance 1,394,199 1,560,993 1,499,653 2,202,211 2,510,411 702,558 46.85%308,200 14.00%
Forestry 80,131 181,562 105,529 201,346 228,141 95,817 90.80%26,795 13.31%
Total Public Works 3,347,968$ 3,691,037$ 3,615,761$ $ 4,603,112 $ 5,170,826 987,351$ 27.31%567,715$ 12.33%
Recreation
Recreation 1,159,004$ 1,240,545$ 1,268,056$ $ 1,484,433 $ 1,649,447 216,377$ 17.06%165,015$ 11.12%
Community Center 740,435 665,183 691,777 969,236 1,104,883 277,459 40.11%135,647 14.00%
Pool 495,498 550,594 539,381 634,262 691,691 94,881 17.59%57,429 9.05%
Total Recreation 2,394,937$ 2,456,322$ 2,499,214$ $ 3,087,931 $ 3,446,021 588,717$ 23.56%358,090$ 11.60%
Other Financing Uses
Transfers Out -$ 20,764$ 488,233$ $ 800,000 $ 1,000,000 311,767 63.86%200,000 25.00%
TOTAL EXPENDITURES 17,985,679$ 18,658,161$ 20,582,674$ $23,060,177 $25,576,458 2,477,503$ 12.04%2,516,281$ 10.91%
20
Investing in General Fund Balance
Reserves
2025: $800,000
2026: $1,000,000
Unassigned Fund Balance
21
What’s Next?
Review Additional Funds
Review Fee Schedule
Review Long Term Plan
Questions & Comments