2025.06.17 Council Meeting Packet
4141 Douglas Drive North • Crystal, Minnesota 55422-1696
Tel: (763) 531-1000 • Fax: (763) 531-1188 • www.crystalmn.gov
Posted: June 13, 2025
City Council Meeting Schedule
Tuesday, June 17, 2025
Time Meeting Location
6:30 p.m.
City council work session to discuss:
1. Three Rivers Parks District Update – District 3
Commissioner Erin Kolb
2. Parks and Recreation Department Update
3. Blue Line Extension Update
a. Supplemental Final Environmental
Impact Statement (SFEIS)
b. 60% plans
4. Council liaison reports.*
5. Constituent issues update.*
6. City manager update.*
7. New business.*
8. Announcements.*
Upper Community
Room/Zoom
7 p.m. City council meeting Council Chambers/Zoom
Immediately following
the city council
meeting
Economic Development Authority
Council Chambers/Zoom
Immediately following
the EDA meeting
Continuation of city council work session
Upper Community
Room/Zoom
The public may attend the meetings via Zoom by connecting through one of the methods identified below.
Topic: Crystal City Council work session and city council meeting.
Time: June 17, 2025, 6:30 p.m., Central Time (US and Canada)
Join Zoom work session meeting:
https://us02web.zoom.us/j/83248610984?pwd=nAGbvhNhdnRKd3IX8IPjDI8PywWjCS.1
Meeting ID: 832 4861 0984 | Passcode: 4141
Find your local number: https://us02web.zoom.us/u/kH7PaSJGM
Join Zoom regular meeting:
https://us02web.zoom.us/j/87694973920?pwd=f3yJEOkNzOovfcUopw4fXl9esqO8xs.1
Meeting ID: 876 9497 3920 | Passcode: 4141
Find your local number: https://us02web.zoom.us/u/kASyg98Gp
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: June 13, 2025
City Council Work Session Agenda
Tuesday, June 17, 2025 | 6:30 p.m.
Upper Community Room/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 17, 2025, at ______ p.m. in
the upper community room 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 17, 2025.
I. Attendance
Council members Staff
____ Onesirosan ____ Bell ____ Struve
____ Budziszewski ____ Tierney ____ Sutter
____ Cummings ____ Therres
____ Deshler ____ Elholm
____ Eidbo ____ Larson
____ Kamish ____ Kunde
____ Kiser ____ Revering
____ Hubbard
II. Agenda
The purpose of the work session is to discuss the following agenda items:
1. Three Rivers Parks District Update – District 3 Commissioner Erin Kolb
2. Parks and Recreation Department Update*
3. Blue Line Extension Update
a. Supplemental Final Environmental Impact Statement (SFEIS)
b. 60% plans
4. Council liaison reports.*
5. Constituent issues update.*
6. City manager update.*
7. New business.*
8. 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.
Erin Kolb
Elected Commissioner District 3
Brooklyn Center • Golden Valley • Brooklyn Park: Precincts W-1, W-2 & W-3 • Crystal • Robbinsdale • St. Anthony • St. Louis Park
Our mission:
Promote environmental stewardship
through recreation and education in a
natural resources-based park system.
Our vision:
Every person can connect with nature
every day.
Who we are
•Park District was established in 1957 by state Legislature
•Board of Commissioners – 5 elected;2 appointed
•Three Rivers Park District includes suburban Hennepin
County
•Partnership with Scott County
•We partner with other agencies to manage some facilities
•25 parks and park
reserves
•27,000 acres of land
•175 miles of regional
trails
•300 miles of trails within
our parks
•15 million visits per year
2025
Budgeted
Three
Rivers Park
District
Revenue
Sources
Property taxes
$42,500,536
Park use fees
$7,812,609
Met Council grants
$2,011,470
Other grants
$400,000
Interfund
transfers
$76,732
Interest income
$200,000
Other revenue
$255,302
MAC Wildlife Area
•City of Crystal/Three
Rivers partnership
to make
improvements to
boardwalk
•First two phases are
complete
Regional Trails
Operational
•Bassett Creek Regional
Trail
•Crystal Lake Regional Trail
Planned
•north-south regional trail
Welcoming everyone to nature
Recreation
Winter recreation
Education
Recreation and Education Programs
2024
•12 public and
group education
programs offered
in Crystal
•7 public programs
in Sochacki Park
Natural Resources
We’re always
interested in talking
about potential
partnerships and
how we can do an
even better job
serving residents of
our communities.
Moving forward
Thank you!
Comments/questions?
Page 1 of 2
COUNCIL STAFF REPORT
DATE: June 12, 2025
FROM: John Sutter, Community Development Director
TO: Mayor and Council
City Manager Adam R. Bell
RE: Blue Line Extension Update - Supplemental Final Environmental Impact Statement and
60% plans
Background
Supplemental Draft Environmental Impact Statement (“SDEIS”)
• On Aug. 2, 2024, the city provided the attached comment letter regarding the SDEIS.
• On May 22, 2025, the project released the Supplemental Final Environmental Impact
Statement (“SFEIS”), including a table summarizing the project’s response to SDEIS
comments (Crystal excerpts attached). There is a 30 day SFEIS comment window which
closes on Sunday, June 22.
60% Plans
• On Oct. 1, 2024, the City Council adopted the attached resolution approving the preliminary
design plans at a 30% level of design detail (“municipal consent” and “30% plans”,
respectively).
• On June 3, 2025, the project released plans at a 60% level of design detail (“60% plans”).
There is a 45 day comment window which closes on Friday, July 18. Staff has only begun its
review of the 60% plans and they are much more detailed than the 30% plans. At the June 17
work session, staff will present illustrative roll plots of the 60% plans, which will be put on
display in the basement hallway in place of the currently posted 30% plans. At the July 15
work session, staff will present a detailed review of the 60% plans to the Council.
June 17 Work Session Goals
Discussion regarding the project responses to the city’s Aug. 2, 2024 SDEIS comment letter.
Provide direction to staff regarding whether or not to formally comment on the SFEIS.
Page 2 of 2
Supplemental Final Environmental Impact Statement
https://metrocouncil.metctest.state.mn.us/Transportation/Projects/Light-Rail-Projects/METRO-
Blue-Line-Extension/Environmental/Supplemental-Final-EIS.aspx
The following is a summary of project’s SFEIS response to the city’s seven comment items:
1. Vehicular traffic
The project addressed sub-items (a) and (c) with an updated traffic forecast for the year
2050.
The project did not address sub-items (b) and (d):
(b) The SFEIS does not evaluate the traffic shift from Bottineau Blvd. to West
Broadway.
(d) The SFEIS does not evaluate the impact of the lane reduction on the existing
southbound queuing problem north of the 47th Avenue signal. It does not even
acknowledge that there is a southbound queuing problem.
2. Parking
The project addressed the parking impacts at Crystal Business Commons (5500 Lakeland).
3. Noise
The project added an additional noise measurement location as requested.
4. Visual impact
The project modified its conclusion of the visual impact of the Bass Lake Road
interchange from neutral to adverse, and discusses using design to mitigate the impacts.
5. Joint Water Commission pipeline through Robbinsdale
The 60% plans include a casing to protect the JWC line.
6. Stormwater
The project added language acknowledging the need to mitigate negative effects of
converting existing visual buffers into stormwater management facilities.
7. Public Safety
The project did not evaluate the increased demand for services from local first
responders such as city police departments.
Page 1 of 5
4141 Douglas Drive North • Crystal, Minnesota 55422-1696
Tel: (763) 531-1000 • Fax: (763) 531-1188 • www.crystalmn.gov
August 2, 2024
Nick Thompson
Interim Project Director
METRO Blue Line Extension
6465 Wayzata Blvd #500
St Louis Park, MN 55426
Subject: City of Crystal comments on Supplemental Draft Environmental Impact Statement for
the METRO Blue Line Extension
Dear Mr. Thompson:
Thank you for the opportunity to provide comments on the Supplemental Draft Environmental Impact
Statement (“SDEIS”) for the METRO Blue Line Extension (“the project”).
The city’s comments concern the following subjects:
1. Vehicular traffic
2. Parking
3. Noise
4. Visual impact of interchange
5. JWC water supply through Robbinsdale
6. Stormwater facilities
7. Public safety
1. Vehicular Traffic
a. The SDEIS conclusions are based on the 2040 forecast, which is flawed.
x Actual 2023 volumes exceed the 2040 forecast volumes in the Bass Lake Road-Wilshire Blvd.
segment
x Actual 2023 volumes have reached the 2040 forecast volumes in the 47th-Hwy 100 ramps
segment.
Page 2 of 5
x The 2040 forecast shows a higher volume on Bottineau Blvd. north of Bass Lake Road than
south of Bass Lake Road, which is contrary to the historical and current reality.
x City staff have repeatedly expressed concerns to project staff about the 2040 forecast and
whether it should be used as a basis for concluding that Bottineau Blvd. would function
adequately and safely with four lanes instead of six.
x The forecast, model, and simulation need to be updated, recalibrated, and revised. Only
then can the project’s impact on vehicular traffic be correctly evaluated.
b. The SDEIS does not specifically evaluate the traffic shift from Bottineau Blvd. to West Broadway
due to the lane reduction on Bottineau.
x This need is supported by the future diversion of 1,000 AADT from Bottineau Blvd. to the
parallel segment of West Broadway in the no-build forecast.
x It is likely that this diversion will be greater due to the project and its reduction of lanes on
Bottineau Blvd. from six lanes to four.
x The city is concerned about diversion of traffic from an existing high-speed limited access
road to a low-speed road of substandard condition and configuration as described in the
City Council’s July 16, 2024, letter to the project.
x The traffic shift needs to be specifically evaluated in the revised forecast, model, and
simulation. Only then can the project’s impact on West Broadway be correctly evaluated.
c. The SDEIS does not evaluate cross-street delays.
x The SDEIS states that all intersections in Crystal would operate at or below capacity but
does not break out the level of service for each approach, the signal phasing and timing
assumptions, or how they compare to current settings at each of the intersections.
x Project staff have acknowledged that Bass Lake Road delays would increase substantially
due to the proposed interchange.
x This is especially concerning due to the prospect of the county potentially increasing cross-
street delays as a way to “solve” delays on Bottineau if they worsen over time.
x The cross-street delays and signal phasing/timing assumptions need to be included in the
SDEIS. Only then can the project’s impact on cross streets be correctly evaluated.
d. The SDEIS does not specifically evaluate the impact of the lane reduction on the existing
southbound queuing problem north of the 47th Avenue signal.
x Existing backups during the a.m. peak typically extend to 50th Avenue and occasionally
extend through the Corvallis intersection. And this is with three southbound lanes.
x The project proposes to eliminate the third southbound lane except for a short segment
from Lakeside to 47th Avenues which is approximately half the length of the existing a.m.
peak queue.
x It is a reasonable assumption that the project’s significant reduction of road space will cause
the southbound queues to extend further north and occur more frequently than in the
existing condition.
Page 3 of 5
x Due to the proposed interchange at Bass Lake Road, southbound traffic will be transitioning
from a wide-open, freeway-style, 1ЫŵŝůĞůŽŶŐ segment south of 63rd Ave. to traffic signals
with congestion and queues.
x Southbound traffic would be cresting the bridge over the CPKC when it would first see the
slowed or stopped queue, with little time to react. Having a third lane start just 1,000 feet
north of 47th does not address this real-world traffic safety problem.
x The SDEIS must specifically evaluate the southbound queuing problem. Only then can the
project’s impact on traffic movement and safety be correctly evaluated.
2. Parking
The SDEIS claims a loss of only 7 off-street parking spaces at Crystal Business Commons (5500
Lakeland).
x This may have been based on an earlier plan to move the Adair cul-de-sac onto the existing
private stormwater pond and use public right of way for private parking.
x The project is now proposing to keep the Adair cul-de-sac basically where it is today, which
would mean the elimination of a lot more than 7 spaces.
x The SDEIS needs to quantify and evaluate the effects of the most recent plan on Crystal
Business Commons and any other private property. Only then can the impacts on parking be
correctly evaluated.
3. Noise
The SDEIS concludes that four homes and 14 apartment units would be moderately impacted by
noise, and none would be severely impacted.
x The noise model was developed using noise measurements at 5906 Elmhurst Ave. N. and 5257
Xenia Ave. N. 5906 Elmhurst is 215 feet from the proposed LRT guideway. 5257 Xenia is 195
feet from the proposed LRT guideway, buffered by a concrete wall and opaque fence, and
located at a lower elevation. Neither property is among the closest homes to the project.
x The most directly impacted residential neighborhood is between Corvallis Ave. N. and 47th Ave.
N. where multiple residences are within 100 feet of the proposed LRT guideway.
x The noise model needs to be revised so that it includes at least one actual measurement
location in the area of greatest potential impact such as one of the single-family homes
adjacent to Bottineau Blvd. in the vicinity of 48th-50th Avenues. Only then can the noise impacts
of the project be correctly evaluated.
4. Visual Impact
The SDEIS acknowledges that the intersection of Bottineau Blvd. and Bass Lake Road is a location of
high visual sensitivity but concludes that the visual impact of the proposed interchange is neutral.
Page 4 of 5
x The visualizations in the SDEIS (KVP-07 and KVP-08) directly and obviously contradict this
conclusion.
x The proposed interchange would be a radical change to the visual landscape due to the bridges
being visible from a wide area including adjacent residential neighborhoods.
x The correct conclusion is that the project will create an adverse visual impact in this location.
5. Joint Water Commission pipeline through Robbinsdale
The SDEIS does not discuss the potential impacts and risks to this water supply pipeline which
serves 70,000 people in Crystal, New Hope, and Golden Valley.
x The SDEIS treats this piece of critical infrastructure as merely another “utility crossing,” as if it’s
no more important than a regular water main serving a single block.
x These risks include not only construction disruption or damage, but also difficulty of access for
long-term maintenance.
x The SDEIS needs to specifically evaluate the risks related to the JWC water supply pipeline.
6. Stormwater
The SDEIS states that additional stormwater facilities will be needed due to increased impervious
surface but does not evaluate the location and impacts of those facilities.
x The project team has indicated that they are looking at land outside the existing roadway
footprint, currently used as landscape buffers, as locations for the additional stormwater
facilities.
x This would remove some of the limited screening and buffering that exists today and would
negatively impact visual quality, noise, and so forth.
x The SDEIS needs to evaluate these impacts.
7. Public Safety
The SDEIS does not evaluate the impact of the project on public safety in general and local law
enforcement agencies in particular. The SDEIS merely lists those agencies and the broad categories
or services they provide.
x The city is likely to see increased demand for police services based on the known reality of what
happens at LRT stations in other jurisdictions.
x Even a fully-staffed Metro Transit Police Dept. would frequently be delayed and sometimes
totally unavailable, causing the Crystal Police Dept. to be the first responding agency at the Bass
Lake Road station.
x The SDEIS needs to evaluate the public safety impacts including the increased demand for
services from local first responders. Only then can the impacts on public safety be correctly
evaluated.
Page 5 of 5
The City appreciates this opportunity to comment on the Supplemental Draft Environmental Impact
Statement. Please feel free to contact me at 763.531.1140 or adam.bell@crystalmn.gov with any
questions. Thank you.
Sincerely,
Adam R. Bell
City Manager
cc: Charlie Zelle, Chair, Corridor Management Committee, METRO Blue Line Extension
Commissioner Jeff Lunde, Hennepin County Board, District 1
Council Member Anjuli Cameron, Metropolitan Council, District 8
Adam R Bell
Page 1 of 3
4141 Douglas Drive North • Crystal, Minnesota 55422-1696
Tel: (763) 531-1000 • Fax: (763) 531-1188 • www.crystalmn.gov
Posted: June 13, 2025
City Council Meeting Agenda
Tuesday, June 17, 2025
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. Proclamation
3.1 The mayor with proclaim July 2025 as Parks and Recreation Month in the city of Crystal.
4. Recognition
4.1 The council will consider a resolution recognizing Crystal Chief of Police Stephanie Revering for
her years of service.
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 June 3, 2025.
b. The city council meeting on June 3, 2025.
c. The city council special work session on June 12, 2025.
5.2 Approval of disbursements over $25,000 submitted by the finance department.
5.3 Approval of the list of license applications submitted by the city clerk.
5.4 Approval of the following items for 2025 Crystal Frolics:
a. Temporary closure of portions of 46th Avenue N. and 47th Avenue N. from July 24 - 27,
2025, 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, 2025, submitted by
Advanced Entertainment Technologies, Inc. d/b/a Image Engineering.
Page 2 of 3
5.5 Acceptance of the resignation of Trina Smith from the Inclusion and Diversity Commission.*
5.6 Adoption of a resolution recognizing Independence Day.
5.7 Adoption of a resolution approving a Local Climate Action Planning Grant Agreement with
the Minnesota Pollution Control Agency.
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 ten 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. Regular Agenda
7.1 The council will receive the 2024 annual financial report from Bergan KDV.
Representatives of Bergan KDV will present the 2024 annual financial report. After hearing
the presentation, the council should formally accept the 2024 annual financial report.
7.2 The council will consider approval of the first reading of an ordinance amending the
overnight parking regulations.
After two work sessions discussing the issue, the council is asked to consider approving
the first reading of an ordinance amending the overnight parking regulations. The
proposed amendments will create two categories of temporary parking permits, short-
term and long-term. The proposal also expands on when permits may be issued. The
permit prices will also increase. If approved, the second reading and adoption, as well as
the fee amendment, will be considered on July 15. Recommend approval of first reading.
8. Announcements
a. Crystal Farmers Market runs on Tuesdays from June 17 through September, from 3–6:30 p.m.
at the Crystal Community Center.
b. City offices will be closed on June 19 in observance of the Juneteenth holiday.
c. The Blue Line Extension will hold an open house regarding the 60% design plans on June 24
from 5–7 p.m. at Crystal Community Center.
d. A ribbon-cutting ceremony to celebrate the re-opening of Crystal Cove Aquatic Center will be
June 25 at 5 p.m. Free pool admission begins at 4 p.m.
e. Parks and Recreation Neighborhood meeting at the Forest Middle School on July 2 at 6:30
p.m.
f. City offices will be closed on July 4, in observance of the Independence Day holiday.
g. The next city council meeting is July 15, at 7 p.m. in the council chambers at city hall and via
Zoom.
h. West Metro Fire-Rescue District Open House is July 22 from 5–8 p.m. at Station 3, 4251 Xylon
Ave. N., New Hope.
i. Crystal Frolics is July 24–July 27. A schedule of activities and events is available at
www.crystalfrolics.org.
j. A coffee reception for Chief Revering’s retirement is June 27 from 3 to 5 p.m. in the upper
community room at city hall. A short program will be held at 3:30 p.m.
Page 3 of 3
k. City council meetings and work sessions are open to the public. Current and previous
meetings are available for viewing and listening at www.crystalmn.gov.
9. Adjournment
*Denotes no supporting information included in the packet.
Have a great weekend; stay healthy. See you at Tuesday’s meeting.
PROCLAMATION
DESIGNATION OF JULY 2025 AS PARKS AND RECREATION MONTH IN CRYSTAL
WHEREAS parks and recreation services are an integral part of communities
throughout this country, including in Crystal; and
WHEREAS parks and recreation promote health and wellness by providing places to
play sports, swim, walk, and participate in other activities; and
WHEREAS parks and recreation connect our community by creating welcoming
community gathering places and community events, and
WHEREAS parks and natural areas contribute to our community’s ecological beauty
and improve mental well-being; and
WHEREAS parks and recreation support food access through community gardens and
the farmers market, and
WHEREAS parks and recreation programs help foster childhood development and
lifelong learning; and
WHEREAS the U.S. House of Representatives has designated July as Parks and
Recreation Month; and
WHEREAS the City of Crystal recognizes the importance of parks and recreation
services in our community.
NOW, THEREFORE, I, Julie Deshler, Mayor of Crystal, do hereby proclaim July 2025
as PARKS AND RECREATION MONTH in the city of Crystal.
Dated this 17th day of June 2025.
________________________________
Julie Deshler, Mayor
4141 Douglas Drive North • Crystal, Minnesota 55422-1696
Tel: (763) 531-1000 • Fax: (763) 531-1188 • www.crystalmn.gov
3.1
CITY OF CRYSTAL
MINNESOTA
RESOLUTION NO. 2025-64
RESOLUTION RECOGNIZING THE CONTRIBUTIONS OF
AND EXPRESSING APPRECIATION TO CHIEF OF POLICE
STEPHANIE K. REVERING ON HER RETIREMENT
WHEREAS, it is a privilege for Crystal citizens to recognize the public service of Stephanie K. Revering,
who began her career as a Community Service Officer with the Crystal Police Department over 27
years ago on July 7, 1997; and
WHEREAS, Stephanie was promoted to the position of Officer on July 22, 1998, and again to
Sergeant on September 22, 2003; and
WHEREAS, Stephanie became deputy chief on January 1, 2009, a position she held until she was
appointed as police chief on October 1, 2012; and
WHEREAS, Chief Revering has been an exceptional, vital member of the Police Department for more
than 27 years, and during her tenure, served in multiple roles, including Patrol Officer, Field Training
Officer Coordinator, Explorers Advisor, CSO Coordinator, Problem Oriented Policing Coordinator,
Investigator, Sergeant, Neighborhood Policing Coordinator, Deputy Chief, and Police Chief; and
WHEREAS, Chief Revering has been active in several professional organizations, including as a board
member of the Minnesota Chiefs of Police Association, the Hennepin County Chiefs of Police
Association, including as its president, twice as a board member of the Minnesota POST Board, in
addition to countless other law enforcement task forces and projects over many years serving to
help make the profession better; and
WHEREAS, during her tenure as chief, the city, police department, and law enforcement, in general,
have seen many changes and many challenges, including staffing issues, COVID-19, civil unrest, a
marked increase in violent crime and mental health calls, different expectations from the public for
policing, the construction of a new police building, and the development of countless new programs
and initiatives; and
WHEREAS, through all these challenges, Chief Revering has been seen as a forward-thinking,
responsive, and engaging leader who has earned the unwavering support of the community and
those inside the department; and
WHEREAS, the mission of the Crystal Police Department is “to provide service with compassion,
integrity, and professionalism”; and
4.1
WHEREAS, Chief Revering has always exemplified the department’s mission in all that she has done
while making thousands of positive citizen contacts and ensuring the safety of the citizens she served
and the police partners with whom she worked; and
WHEREAS, Chief Revering unfailingly demonstrated great commitment to the Police profession and
community and always strived to provide excellent service to the Council, staff, and citizens of
Crystal, leaving an indelible mark on the community; and
WHEREAS, Chief Revering officially retires from the City of Crystal on June 27, 2025, and is being
publicly recognized and honored for her years of exemplary public service.
NOW, THEREFORE, BE IT RESOLVED that the City of Crystal recognizes, with sincere appreciation,
the dedicated and loyal service of Police Chief Stephanie K. Revering for her 27 years of distinguished
service to the citizens of our City.
BE IT FURTHER RESOLVED that the City Council, staff, and citizens extend their congratulations and
best wishes to Chief Revering and her family for many years of health, happiness, and success in
retirement. She will be greatly missed.
Adopted this 17th day of June 2025.
______________________________
Julie Deshler,
Mayor
ATTEST:
______________________________
Kimberly Therres,
Assistant City Manager
4.1
Crystal City Council work session minutes June 3, 2025
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 6:31 p.m. on June 3, 2025, in the upper
community room at city hall, 4141 Douglas Dr. N., Crystal, MN, and via Zoom. Mayor Deshler called the
meeting to order.
I.Attendance
The city clerk recorded the attendance for city council members and staff:
Council members present: Kiser, Onesirosan, Budziszewski, Cummings, Deshler, Eidbo and Kamish.
City staff present: City Manager A. Bell, City Attorney R. Tierney, West Metro Fire-Rescue District
Fire Chief S. Larson, Assistant Fire Chief J. Kunde, Police Chief S. Revering, Deputy Police Chief B.
Hubbard, Public Works Director/City Engineer J. Struve, Community Development Director J. Sutter
and City Clerk C. Serres.
II.Agenda
The council and staff discussed the following agenda items:
1.West Metro Fire-Rescue District quarterly update and 2026 proposed budget.
2.Constituent issues update.
3.New business.
4.Announcements.
At 6:54 p.m., Mayor Deshler recessed the work session and continued it until immediately after the
city council meeting.
Mayor Deshler reconvened the work session at 9:03 p.m. to continue discussion of the following
agenda items:
5.Franchise fees.
6.Overnight parking ordinance.
III.Adjournment
The work session adjourned at 10:32 p.m.
Julie Deshler, Mayor
ATTEST:
Christina Serres, City Clerk
5.1(a)
Crystal City Council meeting minutes June 3, 2025
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 Crystal City Council meeting was held on June 3, 2025, at 7 p.m. in the council chambers at city
hall, 4141 Douglas Dr. N. in Crystal, MN and via Zoom. Mayor Deshler called the meeting to order.
Roll Call
Mayor Deshler asked the city clerk to call the roll for elected officials. Upon roll call, the following
attendance was recorded:
Council members present: Kiser, Onesirosan, Budziszewski, Cummings, Deshler, Eidbo and Kamish.
City staff present: City Manager A. Bell, City Attorney R. Tierney, West Metro Fire-Rescue District Fire
Chief S. Larson, Assistant Fire Chief J. Kunde, Police Chief S. Revering, Deputy Police Chief B. Hubbard,
Public Works Director/City Engineer J. Struve, Community Development Director J. Sutter and City
Clerk C. Serres.
Pledge of Allegiance
Mayor Deshler led the council and audience in the Pledge of Allegiance.
2.Approval of Agenda
The council considered approval of the agenda.
Moved by Council Member Budziszewski and seconded by Council Member Kamish to approve the
agenda.
Motion carried.
3.Appearances
3.1 Hennepin County Attorney Mary Moriarty.
4.Consent Agenda
The council considered the following items, which are routine and non-controversial in nature, in a
single motion:
4.1 Approval of the minutes from the following meetings:
a.The city council work session on May 20, 2025.
b.The city council meeting on May 20, 2025.
4.2 Approval of disbursements over $25,000 submitted by the finance department.
4.3 Approval of the list of license applications submitted by the city clerk.
4.4 Adoption of Resolution No. 2025-54, recognizing Flag Day in the City of Crystal.
4.5 Adoption of Resolution No. 2025-55, recognizing Juneteenth in the City of Crystal.
4.6 Adoption of Resolution No. 2025-56, reporting on state performance measures.
4.7 Adoption of Resolution No. 2025-57, authorizing an application for a Hennepin County IGNITE
community climate mitigation grant.
4.8 Adoption of Resolution No. 2025-58, authorizing a Flock Camera Grant from the State of
Minnesota.
5.1(b)
Crystal City Council meeting minutes June 3, 2025
Page 2 of 5
4.9 Adoption of Resolution No. 2025-59, approving a Joint Power Agreement with the State of
Minnesota Bureau of Criminal Apprehension for the Internet Crimes Against Children Task Force.
Council Member Onesirosan requested that item 4.5 be read aloud. Mayor Deshler read Resolution
No. 2025-55, recognizing Juneteenth in the City of Crystal in its entirety.
Moved by Council Member Kiser and seconded by Council Member Onesirosan to approve the
consent agenda.
Motion carried.
5. Open Forum
The following person addressed the council:
• Dale Olson, 5304 Perry Ave. N., regarding Cottonwood trees on railroad property.
• Burt Orred, 6700 60th Ave. N., commending city staff for their efforts on the UDC ordinance
amendments.
• Delfina Chavez, 3808 Adair Ave. N., regarding neighborhood/property concerns.
6. Public Hearing
6.1 Mayor Deshler announced the purpose of the public hearing:
To receive comment, and council consideration of a resolution regarding vacation of an easement
at 6000 56th Ave. N.
Community Development Director John Sutter addressed the council.
Mayor Deshler opened the public hearing for testimony.
There being no one wishing to appear before the council to give testimony, Mayor Deshler
declared the public hearing closed.
Council action on resolution required in item 7.2 of the regular agenda.
7. Regular Agenda
7.1 The council considered a second reading and adoption of a rezoning ordinance for redevelopment
of 6000 56th Ave. N. and a resolution approving summary publication.
Community Development Director John Sutter and Eric Wright of Woda Cooper Companies
addressed the council.
Moved by Council Member Cummings and seconded by Council Member Kamish to adopt the
following ordinance:
ORDINANCE 2025 - 07
AN ORDINANCE AMENDING THE ZONING MAP TO REZONE
PROPERTY FOR WODA COOPER DEVELOPMENT LOCATED AT 6000 56TH AVENUE NORTH
FROM COMMERCIAL (C)
TO TOWN CENTER – PLANNED DEVELOPMENT (TC-PD)
And further, that this is the second and final reading.
Voting aye: Kiser, Onesirosan, Budziszewski, Cummings, Deshler, Eidbo and Kamish.
Motion carried.
5.1(b)
Crystal City Council meeting minutes June 3, 2025
Page 3 of 5
Moved by Council Member Cummings and seconded by Council Member Kamish to adopt the
following resolution:
RESOLUTION NO. 2025 – 60
RESOLUTION APPROVING SUMMARY LANGUAGE
FOR PUBLICATION OF ORDINANCE NO. 2025-07
Voting aye: Kiser, Onesirosan, Budziszewski, Cummings, Deshler, Eidbo and Kamish.
Motion carried, resolution declared adopted.
7.2 The council considered a resolution vacating an easement at 6000 56th Ave. N.
Community Development Director John Sutter addressed the council.
Moved by Council Member Kiser and seconded by Council Member Budziszewski to adopt the
following resolution:
RESOLUTION NO. 2025 – 61
RESOLUTION VACATING A CUL-DE-SAC EASEMENT WITHIN THE
PLAT OF NOVICE ADDITION
Voting aye: Kiser, Onesirosan, Budziszewski, Cummings, Deshler, Eidbo and Kamish.
Motion carried, resolution declared adopted.
7.3 The council considered a second reading and adoption of an ordinance creating a neighborhood
commercial district and amending the zoning map, and a resolution approving summary
publication.
Community Development Director John Sutter addressed the council.
Moved by Council Member Kiser and seconded by Council Member Budziszewski to adopt the
following ordinance:
ORDINANCE 2025 - 08
AN ORDINANCE MAKING VARIOUS AMENDMENTS
TO CHAPTER V OF THE CRYSTAL CITY CODE
And further, that this is the second and final reading.
Voting aye: Kiser, Onesirosan, Budziszewski, Cummings, Deshler, Eidbo and Kamish.
Motion carried.
Moved by Mayor Deshler and seconded by Council Member Eidbo to adopt the following
resolution:
RESOLUTION NO. 2025 – 62
RESOLUTION APPROVING SUMMARY LANGUAGE
FOR PUBLICATION OF ORDINANCE NO. 2025-08
Voting aye: Kiser, Onesirosan, Budziszewski, Cummings, Deshler, Eidbo and Kamish.
Motion carried, resolution declared adopted.
5.1(b)
Crystal City Council meeting minutes June 3, 2025
Page 4 of 5
7.4 The council considered a second reading and adoption of an ordinance amending the Unified
Development Code, and a resolution approving summary publication.
City Manager Adam R. Bell and Community Development Director John Sutter addressed the
council.
Moved by Council Member Onesirosan and seconded by Council Member Budziszewski to adopt
the following ordinance as recommended by the planning commission with the following
changes: to remove the common interest communities provisions; to set the minimum garage
interior standard to nine feet wide and eighteen feet long; to add to prohibit fuel stations in the
TC-PD district; to allow ADUs in the neighborhood Commercial district as long as they are not
detached; and to retain the requirement for private recreational use in a Planned Development.
ORDINANCE 2025 - 09
AN ORDINANCE MAKING VARIOUS AMENDMENTS
TO CHAPTER V OF THE CRYSTAL CITY CODE
And further, that this is the second and final reading.
Voting aye: Kiser, Onesirosan, Budziszewski, Cummings, Deshler, Eidbo and Kamish.
Motion carried.
Moved by Council Member Onesirosan and seconded by Council Member Budziszewski to adopt
the following resolution:
RESOLUTION NO. 2025 – 63
RESOLUTION APPROVING SUMMARY LANGUAGE
FOR PUBLICATION OF ORDINANCE NO. 2025-09
Voting aye: Kiser, Onesirosan, Budziszewski, Cummings, Deshler, Eidbo and Kamish.
Motion carried, resolution declared adopted.
7.5 The council considered adoption of an interim ordinance establishing a zoning moratorium in the
TC and TC-PD districts.
Community Development Director John Sutter addressed the council.
Moved by Council Member Eidbo and seconded by Council Member Kamish to adopt the
following ordinance:
ORDINANCE 2025 - 10
AN INTERIM ORDINANCE ESTABLISHING A MORATORIUM ON
DEVELOPMENT IN THE TOWN CENTER DISTRICT (TC) AND TOWN CENTER-PLANNED
DEVELOPMENT DISTRICT (TC-PD)
And further, that this is the second and final reading.
Voting aye: Kiser, Onesirosan, Budziszewski, Cummings, Deshler, Eidbo and Kamish.
Motion carried.
8. Announcements
The council and staff made announcements about upcoming events.
5.1(b)
Crystal City Council meeting minutes June 3, 2025
Page 5 of 5
9. Adjournment
Moved by Council Member Budziszewski and seconded by Council Member Kiser to adjourn the
meeting.
Motion carried.
The meeting adjourned at 8:57 p.m.
___________________________________
Julie Deshler, Mayor
ATTEST:
_____________________________________
Christina Serres, City Clerk
5.1(b)
Crystal City Council special work session minutes June 12, 2025
Pursuant to due call and notice given in the manner prescribed by Section 3.01 of the City Charter,
the special work session of the Crystal City Council was held at 6:33 p.m. on June 12, 2025, in the upper
community room at city hall, 4141 Douglas Dr. N., Crystal, MN. Mayor Deshler called the meeting to
order.
I.Attendance
The city manager recorded the attendance for city council members and staff:
Council members present: Kiser, Onesirosan, Budziszewski, Cummings, Deshler, Eidbo, and Kamish.
City staff present: City Manager A. Bell, Assistant City Manager/HR Manager K. Therres, Recreation
Director J. Elholm, Deputy Police Chief B. Hubbard, Assistant Fire Chief J. Kunde, Public Works
Director/City Engineer J. Struve, Community Development Director J. Sutter, and Communications
Manager M. Peterson.
II.Agenda
The council and staff discussed the following agenda item:
1.Council strategic planning.
III.Adjournment
The work session adjourned at 9:28 p.m.
Julie Deshler, Mayor
ATTEST:
Adam R. Bell, City Manager
5.1(c)
DATE:June 10, 2025
TO:Adam R. Bell, City Manager
City of Crystal City Council
FROM: Jean McGann, Contracted Finance Director
RE: Expenditures over $25,000
Payee Amount
Bolton & Menk Inc JWC Pump House Improvements (Pass-Through Cost )$32,679.00
Metropolitan Council Wastewater Services for June $157,087.86
Waste Management (HRG)New Hope, Brooklyn Center, and Crystal April Recycling $101,373.82
IRS - EFTPS Federal & FICA Withholding Taxes for 5/23/25 Pay Date $77,025.77
MN PERA Employee & City Required Contributions for 5/23/25 Pay Date $77,223.47
HealthPartners, Inc.June Health Insurance Premiums $162,256.36
$607,646.28
Description
5.2
Page 1 of 2
City of Crystal Council Meeting
June 17, 2025
Applications for City License
Fireworks – Outdoor
TNT American Promotional Fireworks at Cub Foods, 5301 36th Ave. N., Crystal, MN 55422
Lawful gambling (temporary)
The Church of St. Raphael, 7301 56th Ave. N., Crystal, MN 55428 (for an event on Aug. 1-2, 2025)
New Hope Lions, 3501 Decatur Ct. N., New Hope, MN 55427 (for Bingo at Welcome Park for Crystal
Frolics on July 25-27, 2025)
Liquor – Off-Sale
RPSM, LLC dba Adair Liquor, 6001 42nd Ave. N., Crystal, MN 55422 (Conditional)
VangCheng, LLC dba Liquor Barrel Wine & Spirits, 5628 West Broadway, Crystal, MN 55428 (Conditional)
Liquor (temporary on-sale)
The Church of St. Raphael, 7301 56th Ave. N., Crystal, MN 55428 (for an event on Aug. 1-2, 2025)
West Metro Fire-Rescue District Firefighters Relief Association, 4101 Douglas Dr. N., Crystal, MN 55422
(for Crystal Frolics on July 24-27, 2025, at Welcome Park)
Rental (new)
3232 Welcome Ave. N. – Tanesha Roundtree (Conditional)
Rental (renewal)
5648 Adair Ave. N. – Iasis IV LLC
5315 Angeline Ave. N. – LG Rental Properties LLC (Conditional)
5126 Edgewood Ave. N. – Wally Anderson (Conditional)
3850 Idaho Ave. N. – Micha Genereau
4016 Idaho Ave. N. – Chris Long
2717 Jersey Ave. N. – Yuan Chai
2959 Jersey Ave. N. – Roxanne Elfering
3970 Kentucky Ave. N. – Brian Bona (Conditional)
5000 Lakeside Ave. N. – Justin Holt
3537 Lee Ave. N. – Sofia Mohamed (Conditional)
4616 Maryland Ave. N. – Godiva Properties
5644 Maryland Ave. N. – Invitation Homes
4901 West Broadway – Res-Care Inc. (Conditional)
5240 West Broadway – Crystal Housing Gorup Inc. (Conditional)
4730 Xenia Ave. N. – Rebecca Mathison
6125 32nd Ave. N. – Elise Hoverman (Conditional)
7925 33rd Pl. N. – Dylan Kirkwood (Conditional)
6602 36th Ave. N. – Invitation Homes
5908 38th Ave. N. – Lauren Hannan
6605 45th Pl. N. – Danial and Jalana Moe (Conditional)
6825 46th Ave. N. – Stella Iwuchukwu (Conditional)
5915 47th Ave. N. – HPA II Borrower 2019-1 LLC (Conditional)
6723 50th Ave. N. – Matthew Selden
5701 56th Ave. N. – Harold Creek (Conditional)
5.3
Page 2 of 2
Tobacco
Market and Tobacco, LLC dba Mini Grocery, 2708 Douglas Dr. N., Crystal, MN 55422
Tree Trimmer
Good Tree Care LTD, 313 Madison Ave. S., Hopkins, MN 55343
5.3
May 28, 2025
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 24 - 27. 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 Saturday nights (July 26) 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. The Crystal Police department has said
they would be able to help with security for the fireworks, which will help with cutting
cost this year.
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 CPAP
monitoring the gate during high traffic times.
We will also be using the section of the road at 47th Ave N east of Welcome section on
Saturday afternoon for the Water Ball competition hosted by the WMFRA. The street
area will only be closed temporarily 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
5.4(a)
5.4(b)
5.4(b)
5.4(b)
5.4(b)
5.4(b)
5.4(b)
5.4(b)
5.4(b)
CITY OF CRYSTAL
MINNESOTA
RESOLUTION NO. 2025 – 65
RESOLUTION RECOGNIZING INDEPENDENCE DAY 2025
WHEREAS, on July 4, 1776, the Continental Congress approved the final wording of the Declaration
of Independence; and
WHEREAS, July 4, 1776, was the date that was on the original printed copies of the Declaration of
Independence that were circulated throughout the young nation; and
WHEREAS, the Declaration of Independence contains the principles of our country’s many
freedoms, rights, and individual responsibilities; and
WHEREAS, in 1870, the United States Congress declared July 4 to be a national holiday to celebrate
our nation and freedoms.
NOW, THEREFORE, BE IT RESOLVED, by the City Council of the City of Crystal that July 4, 2025, is
declared as Independence Day in Crystal in recognition of the founding of our country, and I invite
Crystal residents to celebrate and honor our many freedoms on July 4th.
Dated this 17th day of June 2025.
______________________________
Julie Deshler,
Mayor
ATTEST:
______________________________
Kimberly Therres,
Assistant City Manager
5.6
COUNCIL STAFF REPORT
DATE: June 12, 2025
TO: Mayor and City Council
FROM: City Manager Adam R. Bell
RE: Consider a Resolution Approving a Local Climate Action Planning Grant Agreement with
the Minnesota Pollution Control Agency
Background
The city applied for and was awarded a grant from the Minnesota Pollution Control Agency for
climate action planning. The grant amount is $50,000 and requires a local 50% cash match and
will be in the form of reimbursement for eligible expenses. The grant funding will enable the city
to hire a consultant to assist in developing a climate action plan and associated community
engagement initiatives. The Sustainability Commission will be taking an active role in
coordinating with staff, the council, and the consultant on creating the plan and has already
created working groups to begin the preliminary planning process. The grant term goes through
June 30, 2026, so the planning is expected to be completed by then. After the council adopts the
plan, implementation will commence.
Staff is currently researching several consulting firms that work in this arena and other
communities’ plans to determine if issuing a formal request for proposal (RFP) is needed. If
recommended, the RFP is expected to be considered at the July meeting. In either case,
selection of the recommended consultant will likely be considered at the August meeting.
Requested City Council Action
Recommend adoption of Resolution 2025-66 approving a Local Climate Action Planning Grant
Agreement with the Minnesota Pollution Control Agency.
Attachments
1)Minnesota Pollution Control Agency Local Climate Action Planning Grant Agreement
2)Resolution 2025-66 approving a Local Climate Action Planning Grant Agreement with the
Minnesota Pollution Control Agency
5.7
CITY OF CRYSTAL
MINNESOTA
RESOLUTION NO. 2025 – 66
RESOLUTION APPROVING LOCAL CLIMATE ACTION PLANNING GRANT
AGREEMENT WITH THE MINNESOTA POLLUTION CONTROL AGENCY
WHEREAS, the City of Crystal desires to develop a local climate action plan; and
WHEREAS, to help facilitate that initiative, the city applied for and was awarded a grant from the
Minnesota Pollution Control Agency for local climate action planning; and
WHEREAS, the grant amount is for $50,000 and requires a local 50% cash match; and
WHEREAS, the grant funding will enable the city to hire a consultant to assist in developing a climate
action plan and undertake associated community engagement initiatives; and
WHEREAS, formal approval of the grant agreement is required.
NOW, THEREFORE, BE IT RESOLVED, by the City Council of the City of Crystal as follows:
1.The City of Crystal approves and enters into a grant agreement with the Minnesota Pollution
Control Agency for Local Climate Action Planning; and
2.The City Manager is hereby authorized to execute said agreement and amendments as are
necessary to implement the grant project on behalf of the City of Crystal and to serve as the
fiscal agent and administrator of the grant.
______________________________
Julie Deshler,
Mayor
Adopted this 17th day of June 2025.
ATTEST:
______________________________
Kimberly Therres,
Assistant City Manager
5.7
City of Crystal
Audit Presentation
7.1
The Audit
7.1
Management is responsible for the financial statements
Auditor is responsible to express an opinion on the financial statements
Unmodified Opinion –best opinion an auditor is able to offer
Provides assurance that the financial statements are fairly presented in all
material respects
Independent Auditor’s Report
7.1
Report on Minnesota Legal Compliance
◊No compliance findings reported
Report on Government Auditing Standards
◊One internal control finding -Lack of Segregation of Accounting Duties
Communications Letter
◊Required Communication
◊Financial Analysis
Audit Communications
7.1
Financial Communications
7.1
General Fund Balance
7.1
General Fund
-Fund Balance as a Percentage of Budget
7.1
General Fund Budget to Actual Results
Budget Actual Variance Percentage
Revenue
Taxes and assessments 14,924,169$ 14,722,777$ (201,392)$ -1.3%
Intergovernmental 3,015,473 3,119,833 104,360 3.5%
Licenses, permits, fines, and charges for services 1,859,931 1,886,281 26,350 1.4%
Other 71,500 146,906 75,406 105.5%
Total revenues 19,871,073 19,875,797 4,724 0.0%
Expenditures
General government 2,747,113 2,497,405 (249,708) -9.1%
Public safety 10,377,741 10,518,427 140,686 1.4%
Public works 3,615,761 3,928,648 312,887 8.7%
Parks and recreation 2,499,214 2,198,528 (300,686) -12.0%
Community development 854,612 900,942 46,330 5.4%
Total expenditures 20,094,441 20,043,950 (50,491) -0.3%
Excess of revenues over
(under) expenditures (223,368) (168,153) 55,215 -24.7%
Net Other Financing Sources (Uses) 223,368 1,953,974 1,730,606 774.8%
Change in fund balance - 1,785,821 1,785,821 N/A
Beginning fund balance 6,130,015 6,130,015 - N/A
Ending fund balance 6,130,015$ 7,915,836$ 1,785,821$ 29.1%
7.1
General Fund Revenues
7.1
General Fund Expenditures
General
Government
12%
Public Safety
52%Public Works
10%
Parks and
Recreation
21%
Community
Development
5%
2024 General Fund Expenditures
General
Government
12%
Public Safety
50%
Public Works
11%
Parks and
Recreation
22%
Community
Development
4%
2023 General Fund Expenditures
7.1
General Fund Expenditures
7.1
Water Enterprise Fund
7.1
Sanitary Sewer Enterprise Fund
7.1
Storm Drainage Enterprise Fund
7.1
Street Lights Enterprise Fund
7.1
Per Capita Revenues and Expenditures
Trends (State-Wide Averages Not Published for 2022)
2023** 2024***
Intergovernmental revenues per capita 201$ 208$
Property taxes per capita *658 710
Total revenue per capita 1,089$ 1,110$
Expenditures per capita
(less debt service and capital)852$ 904$
Total expenditures per capita 1,054$ 1,048$
Population 22,791 23,263
* Property taxes exclude tax increments
** 2023 per capita data uses 2022 population forecast from Metropolitan Council
*** 2024 per capital data uses 2023 population forecast from the Metropolitan Council
Per Capita Trends
City of Crystal
7.1
Tax Capacity, Certified Levy, and City Tax Rate
7.1
Auditors
7.1
Aaron Dahl
AUDIT MANAGER
651-207-3948
AARON.DAHL@CREATIVEPLANNING.COM
7.1
Andrew Grice
AUDIT SHAREHOLDER
952-563-6862
ANDY.GRICE@CREATIVEPLANNING.COM
7.1
Thank You
7.1
This commentary is provided for general information purposes only, should not be construed as investment, tax or legal advice, and does not constitute an
attorney/client relationship. Past performance of any market results is no assurance of future performance. The information contained herein has been obtained
from sources deemed reliable but is not guaranteed.
7.1
City of Crystal
Hennepin County, Minnesota
Communications Letter
December 31, 2024
7.1
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 8
Emerging Issues 19
7.1
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 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, 2024, 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 over
financial reporting that is less severe than a material weakness, yet important enough to merit
attention by those charged with governance. The significant deficiency identified is stated within
this letter.
7.1
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,
2024. 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 June 6, 2025, 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
June 6, 2025
7.1
City of Crystal
Significant Deficiency
3
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 and Members of the City Council are 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 and the Members of the City
Council 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, 2024. Professional standards require that we advise you of the
following matters related to our audit.
7.1
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, 2024. Professional standards require that we advise you of the
following matters related to our audit.
Our Responsibility in Relation to the Financial Statement Audit
As communicated in our engagement letter, our responsibility, as described by professional
standards, is to form and express opinions about whether the basic financial statements prepared by
management with your oversight are presented fairly, in all material respects, in accordance with
accounting principles generally accepted in the United States of America. Our audit of the basic
financial statements does not relieve you or management of its respective responsibilities.
Our responsibility, as prescribed by professional standards, is to plan and perform our audit to obtain
reasonable, rather than absolute, assurance about whether the basic financial statements are free of
material misstatement. An audit of the basic financial statements includes consideration of internal
control over financial reporting as a basis for designing audit procedures that are appropriate in the
circumstances, but not for the purpose of expressing an opinion on the effectiveness of the City 's
internal control over financial reporting. Accordingly, as part of our audit, we considered the
internal control of the City solely for the purpose of determining our audit procedures and not to
provide any assurance concerning such internal control.
We are also responsible for communicating significant matters related to the audit that are, in our
professional judgement, relevant to your responsibilities in overseeing the financial reporting
process. However, we are not required to design procedures for the purpose of identifying other
matters to communicate to you.
Generally accepted accounting principles provide for certain Required Supplementary Information
(RSI) to supplement the basic financial statements. Our responsibility with respect to the RSI, which
supplements the basic financial statements, is to apply certain limited procedures in accordance
with generally accepted auditing standards. However, the RSI was not audited and, because the
limited procedures do not provide us with sufficient evidence to express an opinion or provide any
assurance, we do not express an opinion or provide any assurance on the RSI.
Our responsibility for the supplementary information accompanying the basic financial statements ,
as described by professional standards, is to evaluate the presentation of the supplementary
information in relation to the basic financial statements as a whole and to report on whether the
supplementary information is fairly stated, in all material respects, in relation to the basic financial
statements as a whole.
Our Responsibility in Relation to Government Auditing Standards
As communicated in our engagement letter, part of obtaining reasonable assurance about whether
the basic financial statements are free of material misstatement, we performed tests of the City's
compliance with certain provisions of laws, regulations, contracts, and grant agreements,
noncompliance with which could have a direct and material effect on the determination of basic
financial statement amounts. However, the objective of our tests was not to provide an opinion on
compliance with such provisions.
7.1
City of Crystal
Required Communication
5
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.
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 2024. 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 and Related Disclosures
Accounting estimates and related disclosures 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.
7.1
City of Crystal
Required Communication
6
Qualitative Aspects of the City's Significant Accounting Practices (Continued)
Significant Accounting Estimates and Related Disclosures (Continued)
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. Further, professional standards
require us to also communicate the effects of uncorrected misstatements related to prior periods on
the relevant classes of transactions, account balances or disclosures, and the basic financial
statements taken as a whole and each applicable opinion unit. Management did not identify, and we
did not notify them of any uncorrected financial statement misstatements.
In addition, professional standards require us to communicate to you all material, corrected
misstatements that were brought to the attention of management as a result of our audit
procedures. None of the misstatements detected as a result of audit procedures and corrected by
management were material, either individually or in the aggregate, to the basic financial statements
taken as a whole.
Disagreements with Management
For purposes of this letter, professional standards define a disagreement with management as a
matter, whether or not resolved to our satisfaction, concerning a financial accounting, reporting, or
auditing matter, which could be significant to the City's basic financial statements or the auditor's
report. No such disagreements arose during the course of our audit.
Representations Requested from Management
We have requested certain written representations from management, which are included in the
management representation letter.
Management's Consultations with Other Accountants
In some cases, management may decide to consult with other accountants about auditing and
accounting matters. Management has informed us that, and to our knowledge, there were no
consultations with other accountants regarding auditing and accounting matters.
7.1
City of Crystal
Required Communication
7
Other Significant Matters, Findings, or Issues
In the normal course of our professional association with the City, we generally discuss a variety of
matters, including the application of accounting principles and auditing standards, significant events
or transactions that occurred during the year, operating and regulatory conditions affecting the City,
and operational plans and strategies that may affect the risks of material misstatement. None of the
matters discussed resulted in a condition to our retention as the City's auditor.
Other Information Included in Annual Reports
Pursuant to professional standards, our responsibility as auditors for other information, whether
financial or nonfinancial, included in the City's annual reports, does not extend beyond the
information identified in the audit report, and we are not required to perform any procedures to
corroborate such other information.
We applied certain limited procedures to the RSI that supplements the basic financial statements.
Our procedures consisted of inquiries of management regarding the methods of preparing the
information and comparing the information for consistency with management's responses to our
inquiries, the basic financial statements, and other knowledge we obtained during our audit of the
basic financial statements. We did not audit the RSI and do not express an opinion or provide any
assurance on the RSI.
With respect to the supplementary information accompanying the financial statements, we made
certain inquiries of management and evaluated the form, content and methods of preparing the
information to determine that the information complies with accounting principles generally
accepted in the United States of America, the method of preparing it has not changed from the prior
period, and the information is appropriate and complete in relation to our audit of the financial
statements. We compared and reconciled the supplementary information to the underlying
accounting records used to prepare the basic financial statements or to the basic financial
statements themselves.
Our responsibility also includes communicating to you any information which we believe is a material
misstatement of fact. Nothing came to our attention that caused us to believe that such information,
or its manner of presentation, is materially inconsistent with the information, or manner of its
presentation, appearing in the basic financial statements.
7.1
City of Crystal
Financial Analysis
8
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, 2024, the General Fund balance was $7,915,836, a increase of 29.1%, or
$1,785,819, from the 2024 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.
$7,405,222 $6,765,565 $5,558,799 $5,160,502 $6,489,446
$926,030 $957,521 $917,956 $924,404 $1,401,517
$26,398 $46,452 $35,338 $45,109 $24,873
$-
$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
2020 2021 2022 2023 2024
Unassigned Committed for Compensated Absences Nonspendable
7.1
City of Crystal
Financial Analysis
9
General Fund (Continued)
The City adopted a budget for 2025 which called for an increase in expenditures of 12.5%, or
$2,567,162 compared to the 2024 budget. Fund balance at December 31, 2024, as a percentage of
the subsequent budget is shown in the chart below. It is the City's policy to maintain unassigned fund
balance for cash flow reserves equal to 45% of the General Fund budget for the subsequent year. The
City has not been in compliance with its fund balance policy for the five years presented.
44%
40%
31%
25%
28%
50%
45%
36%
30%
34%
15%
20%
25%
30%
35%
40%
45%
50%
55%
2020 2021 2022 2023 2024
Unassigned Fund Balance Total Fund Balance
7.1
City of Crystal
Financial Analysis
10
General Fund (Continued)
For the 2024 operating year, the City Council approved a balanced budget anticipating no change in
fund balance. Revenues were over budget by 0% and expenditures were 0.3% under budget.
Budget Actual Variance Percentage
Revenue
Taxes and assessments 14,924,169$ 14,722,777$ (201,392)$ -1.3%
Intergovernmental 3,015,473 3,119,833 104,360 3.5%
Licenses, permits, fines, and charges for services 1,859,931 1,886,281 26,350 1.4%
Other 71,500 146,906 75,406 105.5%
Total revenues 19,871,073 19,875,797 4,724 0.0%
Expenditures
General government 2,747,113 2,497,405 (249,708) -9.1%
Public safety 10,377,741 10,518,427 140,686 1.4%
Public works 3,615,761 3,928,648 312,887 8.7%
Parks and recreation 2,499,214 2,198,528 (300,686) -12.0%
Community development 854,612 900,942 46,330 5.4%
Total expenditures 20,094,441 20,043,950 (50,491) -0.3%
Excess of revenues over
(under) expenditures (223,368) (168,153) 55,215 -24.7%
Net Other Financing Sources (Uses) 223,368 1,953,974 1,730,606 774.8%
Change in fund balance - 1,785,821 1,785,821 N/A
Beginning fund balance 6,130,015 6,130,015 - N/A
Ending fund balance 6,130,015$ 7,915,836$ 1,785,821$ 29.1%
General fund revenues in total came in $4,724 over budgeted amounts. The largest budget variance
for revenue was in the taxes and assessments category, which was $201,392 under budget based on
collections coming in less than anticipated. This variance was offset by the intergovernmental
category being over budget by $104,360 as the City received funding over anticipated amounts for
police and fire state aids, other revenue being over budget by $75,406 because of strong investment
returns, and licenses, permits, fines, and charges for services being over budget by $26,350 due in
part to more than anticipated building and mechanical permits.
Total general fund expenditures were $50,491 under budget for 2024. Parks and recreation
expenditures were $300,686 under budget due to timing of projects and closure of the aquatic center
for construction. Public works was $312,887 over budget related to more tree trimming services and
higher utility costs than anticipated.
Additional transfers of $1,730,606 were approved in 2024 to transfer public safety aid to the General
Fund and to reimburse the General Fund for utility costs that are now being funded by the Building
Internal Service Fund.
7.1
City of Crystal
Financial Analysis
11
General Fund Revenues
The chart below shows the City's revenues by source for the last five years. Total revenues of
$19,875,797 in 2024 increased from $17,604,099 in 2023. An increase of $1,271,076 occurred in
property taxes due to an increase in the amount of property tax levied for the General Fund for the
year. The largest increase occurred in intergovernmental revenue category which increased by
$1,335,570 as a result of an increase in LGA and additional public safety aid.
2020 2021 2022 2023 2024
Other $454,977 $229,628 $84,294 $577,686 $386,648
Charges for Services 332,551 646,189 854,019 850,674 706,867
Licenses and Permits 676,382 874,706 850,953 999,910 999,807
Intergovernmental 3,637,704 1,797,751 1,927,302 1,784,263 3,119,833
Property Taxes 11,407,848 12,052,301 12,488,689 13,391,566 14,662,642
$-
$5,000,000
$10,000,000
$15,000,000
$20,000,000
$25,000,000
7.1
City of Crystal
Financial Analysis
12
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 2023 and 2024.
General
Government
12%
Public Safety
52%
Public Works
10%
Parks and
Recreation
21%
Community
Development
5%
2024 General Fund Expenditures
General
Government
12%
Public Safety
50%
Public Works
11%
Parks and
Recreation
22%
Community
Development
4%
2023 General Fund Expenditures
7.1
City of Crystal
Financial Analysis
13
General Fund Expenditures (Continued)
General Fund expenditures increased $1,406,553, or 7.5%, from the prior year. Public safety
expenditures increased $1,155,712 with higher salary and benefit costs based on staffing along with
additional internal technology and internal service charges. Expenditures for general government
increased $192,767 with salaries and benefits and professional services costs. Parks and recreation
expenditures decreased $93,811 due to less activity with the closure of the aquatic center for
construction.
2020 2021 2022 2023 2024
Community Development $670,574 $677,721 $735,304 $822,685 $900,942
Parks and Recreation 2,895,125 3,506,923 3,869,267 4,198,877 4,105,066
Public Works 1,549,456 1,761,363 1,873,638 1,948,482 2,022,110
Public Safety 8,263,068 8,478,737 9,082,619 9,362,715 10,518,427
General Government 2,244,492 2,243,454 2,424,851 2,304,638 2,497,405
$-
$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
$22,000,000
General Fund Expenditures
7.1
City of Crystal
Financial Analysis
14
Water Enterprise Fund
Activity for the City's Water Fund is shown below. Water operating revenues decreased $82,781 as a
result of decrease in consumption. Operating expenses increased $223,641 compared to 2023 with
noted increases for water charges in 2024. The Water Fund ended the year with an operating income
of $1,522,343, which was a decrease of $316,422 from 2023.
2020 2021 2022 2023 2024
Operating revenue $4,442,177 $5,060,454 $5,307,608 $5,825,482 $5,742,701
Operating expense 3,356,825 3,713,204 3,813,496 3,986,717 4,220,358
Net income with depreciation 1,382,389 1,532,831 1,700,832 2,334,056 2,072,463
Net income without depreciation 1,540,078 1,701,056 1,892,097 2,538,863 2,300,915
$-
$1,000,000
$2,000,000
$3,000,000
$4,000,000
$5,000,000
$6,000,000
Water Utility
7.1
City of Crystal
Financial Analysis
15
Sanitary Sewer Enterprise Fund
Sewer operating revenues increased $57,444 due to increased billing rates. Operating expenses
increased $167,511 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
$790,250 and decreased $110,067 from 2023.
2020 2021 2022 2023 2024
Operating revenue $2,683,373 $3,114,385 $3,364,336 $3,628,556 $3,686,000
Operating expense 2,317,049 2,742,022 2,668,640 2,728,239 2,895,750
Net income with depreciation 489,141 424,580 688,252 990,151 801,873
Net income without depreciation 622,484 577,443 865,078 1,214,004 1,051,155
$-
$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
7.1
City of Crystal
Financial Analysis
16
Storm Drainage and Street Lights Enterprise Funds
2020 2021 2022 2023 2024
Operating revenue $1,272,283 $1,310,107 $1,365,681 $1,395,139 $1,426,553
Operating expense 725,016 817,652 937,050 930,995 1,047,966
Net income with depreciation 683,715 480,414 387,410 528,955 452,013
Net income without depreciation 1,028,968 896,206 850,096 1,030,781 1,024,061
$-
$200,000
$400,000
$600,000
$800,000
$1,000,000
$1,200,000
$1,400,000
$1,600,000
Storm Drainage Utility
2020 2021 2022 2023 2024
Operating revenue $193,029 $194,537 $195,555 $212,369 $225,286
Operating expense 194,991 180,314 205,757 208,389 195,671
Net income with depreciation 19,912 28,206 12,557 48,914 65,704
Net income without depreciation 52,268 60,756 45,106 81,654 98,824
$-
$50,000
$100,000
$150,000
$200,000
$250,000
Street Lights Utility
7.1
City of Crystal
Financial Analysis
17
Per Capita Revenues and Expenditures
Below is a chart of the per capita trends in selected revenue and expenditure line items. In 2024, the
intergovernmental revenue per capita increased due to an increase in LGA and public safety aid. The
property taxes per capita for 2024 increased due to an increase in property tax levy. Current
expenditures per capita increased while total expenditures per capital decreased due to more capital
project costs in 2023.
2023**2024***
Intergovernmental revenues per capita 201$ 208$
Property taxes per capita *658 710
Total revenue per capita 1,089$ 1,110$
Expenditures per capita
(less debt service and capital)852$ 904$
Total expenditures per capita 1,054$ 1,048$
Population 22,791 23,263
* Property taxes exclude tax increments
** 2023 per capita data uses 2022 population forecast from Metropolitan Council
*** 2024 per capital data uses 2023 population forecast from the Metropolitan Council
Per Capita Trends
City of Crystal
7.1
City of Crystal
Financial Analysis
18
Tax Capacity, Certified Tax Levy, and City Tax Rate
The chart below graphs the tax capacity, certified tax levy, and City tax rate for 2020 through 2024.
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 2023 to 2024, by
$1,841,904, or 6.4%. With taxable market value increasing at a faster rate than the certified levy
over the last five years, the City's tax rate has increased from 46.8% in 2020 to 48.4% in 2024.
$22,411,718
$23,617,970
$25,586,218
$28,993,403
$30,835,307
$12,084,672 $12,837,587 $13,519,480
$14,826,680
$16,322,730
46.8%48.4%
46.3%
46.4%48.4%
-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
$33,000,000
2020 2021 2022 2023 2024
Tax Capacity Certified Tax Levy City Tax Rate
* Tax capacity and city tax rate obtained from Hennepin County taxing district information
7.1
City of Crystal
Emerging Issues
19
Executive Summary
The following is an executive summary of financial related updates to assist you in staying current on
emerging issues in accounting and finance. This summary will give you a preview of the new
standards that have been recently issued and what is on the horizon for the near future. The most
recent and significant updates include:
• Accounting Standard Update – GASB Statement No. 102 – Certain Risk Disclosures
GASB has issued GASB Statement No. 102 relating to risk disclosures. The disclosures will
provide users with timely information regarding certain concentrations or constraints and
related events that have occurred or have begun to occur that make a government vulnerable
to a substantial impact.
• Accounting Standard Update – GASB Statement No. 103 – Financial Reporting Model
Improvements
GASB has issued GASB Statement No. 103 relating to changes in financial reporting
requirements. The changes provide clarity, enhance the relevance of information, provide
more useful information for decision-making, and provide for greater comparability amongst
government entities.
• Accounting Standard Update – GASB Statement No. 104 – Disclosure of Certain Capital
Assets
GASB has issued GASB Statement No. 104 relating to capital asset disclosures. The disclosures
required by this Statement provide users of the financial statements with essential
information about certain types of capital assets.
The following are extensive summaries of the current update(s). As your continued
business partner, we are committed to keeping you informed of new and emerging issues. We are
happy to discuss this/these issue(s) with you further and their applicability to your City.
7.1
City of Crystal
Emerging Issues
20
Accounting Standard Update – GASB Statement No. 102 – Certain Risk Disclosures
The objective of this Statement is to provide users of government financial statements with
information about risks related to a government's vulnerabilities due to certain concentrations or
constraints that is essential to their analyses for making decisions or assessing accountability.
This Statement provides definitions for concentration and constraint. A concentration as a lack of
diversity related to an aspect of a significant inflow of resources or outflow of resources. A
constraint is a limitation imposed on a government by an external party or by formal action of the
government's highest level of decision-making authority.
This Statement requires a government to assess whether a concentration or constraint could present
a risk of financial difficulty. The City will need to make a disclosure in the notes to the financial
statements if all three of the following criteria are true:
• The City knows about the concentration or constraint prior to financial statement
issuance.
• The concentration or constraint makes the City vulnerable to risk of a substantial impact.
• An event or events associated with the concentration or constraint that could cause a
substantial impact have either (1) happened; (2) started to happen; or (3) are more likely
than not to start happening within 12 months of the financial statements being issued.
If a government determines the above criteria for disclosure have been met, it should disclose
information in notes to financial statements in sufficient detail to enable users of financial
statements to understand the nature of the circumstances disclosed and the government's
vulnerability to the risk of a substantial impact. Disclosures are required for the government as a
whole as well as any opinion unit in the financial statements that includes outstanding revenue debt.
Disclosures can be combined to avoid unnecessary duplication (e.g., a subsequent event footnote).
GASB Statement No. 102 is effective for fiscal years beginning after June 15, 2024. Earlier
application is encouraged.
Information provided above was obtained from www.gasb.org.
7.1
City of Crystal
Emerging Issues
21
Accounting Standard Update – GASB Statement No. 103 – Financial Reporting Model
Improvements
The objective of this Statement is to improve key components of the financial reporting model to
enhance its effectiveness in providing information that is essential for decision making and assessing
a government's accountability. This Statement also addresses certain application issues.
This Statement addresses 5 areas of the financial statements (1) Management's Discussion and
Analysis (MD&A), (2) Unusual or Infrequent Items, (3) Presentation of the Proprietary Fund Statement
of Revenues, Expenses, and Changes in Fund Net Position, (4) Major Component Unit Information,
and (5) Budgetary Comparison Information.
This Statement continues the requirement that the MD&A precede the basic financial statements as
part of the Required Supplementary Information (RSI). This Statement requires that the information
presented in MD&A be limited to the related topics discussed in five sections: (1) Overview of the
Financial Statements, (2) Financial Summary, (3) Detailed Analyses, (4) Significant Capital Asset and
Long-Term Financing Activity, and (5) Currently Known Facts, Decisions, or Conditions. The
Statement stresses that detailed analyses should explain why balances and results of operations
changed, rather than stating amounts and "boilerplate" discussions.
This Statement describes unusual or infrequent items as transactions and other events that are either
unusual in nature or infrequent in occurrence. Furthermore, governments are required to display the
inflows and outflows related to each unusual or infrequent item separately as the last presented
flow(s) of resources prior to the net change in resource flows in the government-wide, governmental
fund, and proprietary fund statements of resource flows.
This Statement requires that the proprietary fund statement of revenues, expenses, and changes in
fund net position continue to distinguish between operating and nonoperating revenues and
expenses. The Statement provides clarification regarding operating and nonoperating revenues and
expenses. Also, this Statement requires that a subtotal for operating income (loss) and noncapital
subsidies be presented before reporting other nonoperating revenues and expenses.
This Statement requires governments to present each major component unit separately in the
reporting entity's statement of net position and statement of activities if it does not reduce the
readability of the statements. If the readability of those statements would be reduced,
combining statements of major component units should be presented after the fund financial
statements.
This Statement requires governments to present budgetary comparison information using a single
method of communication - RSI. Governments also are required to present (1) variances between
original and final budget amounts and (2) variances between final budget and actual amounts. An
explanation of significant variances is required to be presented in notes to RSI.
GASB Statement No. 103 is effective for fiscal years beginning after June 15, 2025. Earlier
application is encouraged.
Information provided above was obtained from www.gasb.org.
7.1
City of Crystal
Emerging Issues
22
Accounting Standard Update – GASB Statement No. 104 – Disclosure of Certain Capital Assets
The objective of this Statement is to provide users of government financial statements with essential
information about certain types of capital assets.
This Statement requires certain types of capital assets continue to be disclosed separately in the
capital assets note disclosures including presentation of capital assets by major class and separate
disclosure of lease assets, subscription assets, and intangible right-to-use assets.
This Statement requires additional disclosures for capital assets held for sale. A capital asset is held
for sale if (a) the government has decided to pursue the sale of the capital asset and (b) it is
probable that the sale will be finalized within one year of the financial statement date.
Governments should disclose (1) the ending balance of capital assets held for sale, with separate
disclosure for historical cost and accumulated depreciation by major class of asset, and (2) the
carrying amount of debt for which the capital assets held for sale are pledged as collateral for each
major class of asset.
GASB Statement No. 104 is effective for fiscal years beginning after June 15, 2025. Earlier
application is encouraged.
Information provided above was obtained from www.gasb.org.
7.1
ANNUAL COMPREHENSIVE
FINANCIAL REPORT
OF THE
CITY OF CRYSTAL,
MINNESOTA
For the Year Ended
December 31, 2024
Prepared by
City of Crystal Finance Department
Abdo Financial Solutions, Finance Director
7.1
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 111
Combining Balance Sheet – Nonmajor Governmental Funds 112
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances
– Nonmajor Governmental Funds 114
7.1
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 116
Schedule of Revenues, Expenditures, and Changes in Fund Balance
– Budget and Actual – EDA - Special Revenue 117
Schedule of Revenues, Expenditures, and Changes in Fund Balance
– Budget and Actual – Street Reconstruction - Capital Projects 118
Schedule of Revenues, Expenditures, and Changes in Fund Balance
Budget and Actual – Park Improvement - Capital Projects 119
Schedule of Revenues, Expenditures, and Changes in Fund Balance
– Budget and Actual – Police Equipment Revolving - Capital Projects 120
Combining Statement of Net Position - Internal Service Funds 121
Combining Statement of Revenues, Expenditures, and Changes in Net Position
– Internal Service Funds 122
Combining Statement of Cash Flows – Internal Service Funds 123
Statistical Section (Unaudited) Table Page
Net Position by Component 1 128
Change in Net Position 2 130
Fund Balances of Governmental Funds 3 134
Changes in Fund Balances of Governmental Funds 4 136
Taxable and Estimated Market Values of Taxable Property 5 138
Property Tax Rates – Direct and Overlapping Governments 6 139
Principal Property Taxpayers 7 140
Property Tax Levies and Collations 8 141
Legal Debt Margin Information 9 142
Ratios of Outstanding Debt by Type 10 144
Ratios of General Bonded Debt Outstanding 11 145
Direct and Overlapping Governmental Activities Debt 12 146
Demographic and Economic Statistics 13 147
Principal Employers 14 148
Full-Time City Government Employees by Function 15 149
Operating Indicators by Function 16 150
Capital Asset Statistics by Function 17 152
7.1
1
City of Crystal
Elected Officials and Administration
December 31, 2024
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
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7.1
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City of Crystal
Organizational Chart
December 31, 2024
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4141 Douglas Drive North • Crystal, Minnesota 55422-1696
Tel: (763) 531-1000 • Fax: (763) 531-1188 • www.crystalmn.gov
June 6, 2025
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, 2024, 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, 2024, 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, 2024, 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 the MD&A and should be read in
conjunction with it. The City's MD&A can be found immediately following the report of the
independent auditors.
7.1
6
Profile of Government
The City of Crystal, incorporated in 1960, is a northwestern suburb of the Minneapolis/St. Paul
metropolitan area, lying adjacent to the City of Minneapolis. The city lies wholly within Hennepin
County and encompasses an area of 5.8 square miles and serves a population of approximately
23,000 residents. The City is empowered to levy a property tax on both real and personal
properties located within its boundaries. While it also is empowered by state statute to extend its
corporate limits by annexation, the City of Crystal is a completely developed community and is
bordered on all sides by other incorporated communities.
The City operates under the Council-Manager form of government. Policy-making and legislative
authority are vested in a governing council (City Council) consisting of the mayor and six other
members. The City Council is responsible, among other things, for passing ordinances, adopting
the budget, appointing committees, and hiring both the City Manager and the City Attorney. The
City Manager is responsible for carrying out the policies and ordinances of the City Council and
for overseeing the day-to-day operations of the City. The City Council is elected on a non-partisan
basis. Council members serve four-year staggered terms, with three council members elected
every two years. The mayor is also elected to serve a four-year term. The six council members
are elected by section and ward; the mayor is elected at large.
The City of Crystal provides its residents and businesses with a full range of services, including
police protection, the construction and maintenance of streets and other infrastructure, recreational
activities, building and housing inspections, planning, and zoning, and code enforcement. In
addition, the City operates five enterprises for water, sanitary sewer, storm drainage, street
lighting, and recycling services.
Fire protection services are provided by a joint venture with the West Metro Fire-Rescue District,
and water services are provided by a joint venture with the Golden Valley, Crystal, and New Hope
Joint Water Commission. Additional information on these joint ventures can be found in the notes
to the financial statements.
Housing and redevelopment activities are provided through a legally separate Economic
Development Authority (EDA). Its governing board is comprised of the city council members and
the City has operational responsibility of the EDA, meaning it manages the EDA's activities in
essentially the same manner that it manages its own programs and departments. Therefore, it has
been included as an integral part of the City's financial statements.
The annual budget serves as the foundation for the City's financial planning and control. In
addition, the government maintains budgetary controls. The objective of budgetary controls is to
ensure compliance with legal provisions embodied in the annual budget approved by the City
Council. The level of budgetary control (i.e., the level at which expenditures cannot legally exceed
the budgeted amount) is at the fund level for all fund types, with the exception of the General Fund,
which is at the department level. Budget-to-Actual comparisons are provided in this financial
report for each individual governmental fund for which an annual budget has been adopted.
7.1
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 23,092.
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. More recently, the rise in interest rates has broadly shifted the dynamics
of the real estate market, with the City’s taxable market value decreasing by 3.4% from 2023 to
2024. 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 2024, significant construction projects included 16
townhomes, four single family homes with accessory dwelling units, and a childcare center. These
projects had a combined permit value of $7,338,000. 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,
7.1
8
the Community Center, and any other major building projects that may be needed over the next
fifteen years.
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 until the second half of the fiscal year. The City operates on a calendar year basis, but
half of the property taxes and LGA are received in July and the other half in December. Property
taxes and intergovernmental revenues were 89% of the General Fund's revenue in 2024.
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, 2023.
To be awarded a Certificate of Achievement, a government must publish an easily readable and
efficiently organized annual comprehensive financial report. This report must satisfy both
accounting principles generally accepted in the United States of America and applicable legal
requirements. A Certificate of Achievement is valid for a period of one year only. We believe that
our current annual comprehensive financial report continues to meet the Certificate of
Achievement Program's requirements, and we are submitting it to the GFOA to determine its
eligibility for another certificate.
Acknowledgments
The preparation of this report could not have been accomplished without the efficient and
dedicated services of the staff of the finance department. We would like to express our appreciation
to all members of the department for their assistance and contributions to the preparation of this
report. Due credit should also be given to the mayor and the City Council for their interest and
support in planning and conducting the operations of the government in a responsible and
progressive manner.
Respectfully submitted,
Adam R. Bell
City Manager
City of Crystal
7.1
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City of Crystal
Certificate of Achievement for Excellence in Financial Reporting
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7.1
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, 2024, 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, 2024, 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.
7.1
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 $1,176,917 and
$6,146,284, respectively. The financial statements of the District and Commission were audited by
other auditors whose reports thereon have been furnished to us and our opinion, insofar as it relates
to the amounts disclosed for the District and Commission, is based on the report of the other
auditors.
7.1
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 Auditing Standards Board (GASB), who
considers it to be an essential part of financial reporting for placing the basic financial statements in
an appropriate operational, economic, or historical context. We have applied certain limited
procedures to the Required Supplementary Information in accordance with auditing standards
generally accepted in the United States of America, which consisted of inquiries of management
about the methods of preparing the information and comparing the information for consistency with
management's responses to our inquiries, the basic financial statements, and other knowledge we
obtained during our audit of the basic financial statements. We do not express an opinion or provide
any assurance on the information because the limited procedures do not provide us with sufficient
evidence to express an opinion or provide any assurance.
Supplementary Information
Our audit was conducted for the purpose of forming opinions on the financial statements that
collectively comprise the City of Crystal's basic financial statements. The accompanying
supplementary information identified in the Table of Contents is presented for purposes of additional
analysis and are not a required part of the basic financial statements.
Such information is the responsibility of management and was derived from and relates directly to
the underlying accounting and other records used to prepare the basic financial statements. The
information has been subjected to the auditing procedures applied in the audit of the basic financial
statements and certain additional procedures, including comparing and reconciling such information
directly to the underlying accounting and other records used to prepare the basic financial
statements or to the basic financial statements themselves, and other additional procedures in
accordance with auditing standards generally accepted in the United States of America. In our
opinion, the accompanying supplementary information is fairly stated, in all material respects, in
relation to the basic financial statements as a whole.
Other Information
Management is responsible for the other information included in the Annual Comprehensive Financial
Report. The other information comprises the introductory and statistical sections but does not
include the basic financial statements and our auditor's report thereon. Our opinions on the basic
financial statements do not cover the other information, and we do not express an opinion or any
form of assurance thereon.
In connection with our audit of the basic financial statements, our responsibility is to read the other
information and consider whether a material inconsistency exists between the other information and
the basic financial statements, or the other information otherwise appears to be materially
misstated. If, based on the work performed, we conclude that an uncorrected material misstatement
of the other information exists, we are required to describe it in our report.
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14
Other Reporting Required by Government Auditing Standards
In accordance with Government Auditing Standards, we have also issued our report dated June 6,
2025, 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
June 6, 2025
7.1
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, 2024. 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 $132,219,766. Of this amount, $28,574,579
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 $2,781,125. Governmental activities experienced a $21,387
decrease in net position from operations while business-type activities experienced a $2,802,512
increase in net position from operations.
At the end of the fiscal year, total fund balance for the General Fund was $7,915,836, or 39.49% 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
$606,325 during the fiscal year. The City's total OPEB liability increased by $352,137.
Overview of the Financial Statements
Management's Discussion and Analysis is intended to serve as an introduction to the City's basic
financial statements, which are comprised of three components: 1) government-wide financial
statements; 2) fund financial statements; and 3) notes to the financial statements. This report also
contains other supplementary information in addition to the basic financial statements themselves.
GOVERNMENT-WIDE FINANCIAL STATEMENTS
The government-wide financial statements are designed to provide readers with a broad overview of
the City's finances, in a manner similar to private sector business.
The Statement of Net Position presents information on all the City's assets plus deferred outflows of
resources and liabilities plus deferred inflows of resources, with the difference between the two
reported as net position. Over time, increases or decreases in net position may serve as a useful
indicator of whether the financial position of the City is improving or deteriorating.
The Statement of Activities presents information showing how the City's net position changed during
the most recent fiscal year. All changes in net position are reported as soon as the underlying event
giving rise to the change occurs, regardless of the timing of related cash flows. Thus, revenues and
expenses are reported in this statement for some items that will only result in cash flows in future
fiscal periods (e.g., uncollected taxes and earned but unused vacation leave).
7.1
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 ten 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 seven 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.
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.
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City of Crystal
Management's Discussion and Analysis
17
GOVERNMENT-WIDE FINANCIAL STATEMENTS (CONTINUED)
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 the 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.
GOVERNMENT-WIDE FINANCIAL ANALYSIS
Net Position
The City has 71.76% 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.
7.1
City of Crystal
Management's Discussion and Analysis
18
GOVERNMENT-WIDE FINANCIAL ANALYSIS (CONTINUED)
Net Position (Continued)
An additional 6.63% of the City's net position represents resources that are subject to external
restrictions on how they may be used. The remaining balance of 21.61% 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:
2024 2023 2024 2023 2024 2023
Current and other assets 33,572,206$ 34,497,172$ 12,993,677$ 10,044,041$ 46,565,883$ 44,541,213$
Equity interest in joint venture 1,176,917 1,179,598 6,146,284 5,719,069 7,323,201 6,898,667
Capital assets 75,143,483 74,473,563 27,925,866 26,963,668 103,069,349 101,437,231
Total assets 109,892,606 110,150,333 47,065,827 42,726,778 156,958,433 152,877,111
Deferred outflows of resources 6,750,715 8,281,333 109,882 147,682 6,860,597 8,429,015
Long-term liabilities
outstanding 16,513,845 18,784,366 558,698 613,377 17,072,543 19,397,743
Other liabilities 2,250,120 2,099,269 2,181,308 689,974 4,431,428 2,789,243
Total liabilities 18,763,965 20,883,635 2,740,006 1,303,351 21,503,971 22,186,986
Deferred inflows of resources 9,791,454 2,135,092 303,839 97,427 10,095,293 2,232,519
Net Position
Net investment
in capital assets 67,077,943 65,341,301 27,799,219 26,963,668 94,877,162 92,304,969
Restricted 8,768,025 10,327,395 - - 8,768,025 10,327,395
Unrestricted 12,241,934 12,440,593 16,332,645 14,365,684 28,574,579 26,806,277
Total net position 88,087,902$ 88,109,289$ 44,131,864$ 41,329,352$ 132,219,766$ 129,438,641$
Changes in Net Position
Governmental Activities Business-Type Activities Total
7.1
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 2024 and 2023 follows:
2024 2023 2024 2023 2024 2023
Revenues
Program revenues
Charges for services 1,943,538$ 2,294,089$ 11,359,312$ 11,192,378$ 13,302,850$ 13,486,467$
Operating grants and
contributions 1,258,214 1,946,055 720,959 803,278 1,979,173 2,749,333
Capital grants and
contributions 2,654,908 2,578,089 99,951 5,761 2,754,859 2,583,850
General revenues
Property taxes 16,812,947 15,387,668 - - 16,812,947 15,387,668
Intergovernmental 2,305,152 1,130,740 - - 2,305,152 1,130,740
Other 1,048,418 1,348,082 254,232 246,444 1,302,650 1,594,526
Total revenues 26,023,177 24,684,723 12,434,454 12,247,861 38,457,631 36,932,584
Expenses
General government 3,112,671 2,692,918 - - 3,112,671 2,692,918
Public safety 11,753,929 10,005,401 - - 11,753,929 10,005,401
Public works 4,875,054 4,965,665 - - 4,875,054 4,965,665
Parks and recreation 5,124,584 5,289,456 - - 5,124,584 5,289,456
Community development 1,696,766 1,628,317 - - 1,696,766 1,628,317
Interest on long-term debt 202,745 229,583 - - 202,745 229,583
Water - - 4,221,558 3,989,117 4,221,558 3,989,117
Sanitary sewer - - 2,895,750 2,728,239 2,895,750 2,728,239
Storm drainage - - 1,047,966 930,995 1,047,966 930,995
Street lights - - 195,671 208,389 195,671 208,389
Recycling - - 549,812 465,835 549,812 465,835
Total expenses 26,765,749 24,811,340 8,910,757 8,322,575 35,676,506 33,133,915
Change in Net Position
Before Transfers (742,572) (126,617) 3,523,697 3,925,286 2,781,125 3,798,669
Transfers 721,185 671,296 (721,185) (671,296) - -
Change in Net Position (21,387) 544,679 2,802,512 3,253,990 2,781,125 3,798,669
Net position - beginning of year 88,109,289 84,011,334 41,329,352 35,825,501 129,438,641 119,836,835
Net position - end of year 88,087,902$ 84,556,013$ 44,131,864$ 39,079,491$ 132,219,766$ 123,635,504$
Governmental Activities Business-Type Activities Total
Changes in Net Position
7.1
City of Crystal
Management's Discussion and Analysis
20
GOVERNMENT-WIDE FINANCIAL ANALYSIS (CONTINUED)
Governmental Activities
Governmental activities decreased the City's governmental-type net position by $21,387, or 0.02%,
accounting for 0.77% reduction of the total increase in the City's net position.
Business-type Activities
Business-type activities increased the City's business-type net position by $2,802,512, or 6.78%,
accounting for 100.77% of the total increase in the City's net position.
Key elements of the net increase include:
• Rate increases – The City Council approved a rate increase of 7% for water, 7% for sewer, and
7% streetlights.
7.1
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
$14,000,000
General
government
Public safety Public works Parks and
recreation
Community
development
Interest on
long-term
debt
2024 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
2023 Expenses and Program Revenues -Governmental Activities
Expenses Revenues
7.1
City of Crystal
Management's Discussion and Analysis
22
REVENUES BY SOURCE
10%
Capital grants and
contributions7%
Charges for services
5%
Operating grants and
contributions
65%
Property taxes
9%
Grants and
contributions not
restricted to specific
programs
3%
Unrestricted investment
earnings
1%
Other general revenue
2024 Revenues by Source -Governmental Activities
10%
Capital grants and
contributions
9%
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
7.1
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
2024 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
7,000,000
Water Sanitary Sewer Storm drainage Street lights Recycling
2023 Expenses and Program Revenues -Business Type Activities
Expenses Revenues
7.1
City of Crystal
Management's Discussion and Analysis
24
REVENUES BY SOURCE
Charges for
services
91%
Operating grants
and contributions
6%
Capital grants and
contributions
1%
Unrestricted
investment
earnings
2%
2024 Revenues by Source - Business Type Activities
Charges for
services
91%
Operating grants
and contributions
7%
Unrestricted
investment
earnings
2%
2023 Revenues by Source - Business Type Activities
7.1
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 a combined ending fund balance
of $29,457,521, an increase of $3,011,729 compared to the prior year.
Approximately 22.03% of the total amount ($6,489,446) constitutes unassigned fund balance, which is
available for spending at the government's discretion. The remainder of fund balance has been
classified as nonspendable ($24,873), restricted ($5,075,673), committed ($17,747,723), and assigned
($119,806).
The General Fund is the main operating fund of the City. At the end of the fiscal year the total fund
balance was $7,915,836. Unassigned fund balance was $6,489,446 of this amount, $1,401,517 was
committed for amounts incurred as an expense but not yet paid, and $24,873 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 32.37% 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.
During the current fiscal year, the fund balance of the General Fund rose by $1,785,821 compared to
the previous year. In 2024, General Fund revenues grew by 12.9%, driven by a higher property tax levy
and increased intergovernmental funding from Local Government Aid (LGA) and public safety aid.
General Fund expenditures increased by 7.5%, primarily due to increased salaries and benefits,
enhanced technology, and internal service charges within public safety, as well as higher salaries and
benefits and professional service costs in general government. This increase was slightly offset by
reduced parks and recreation expenditures due to the temporary closure of the aquatic center for
construction.
The EDA Fund recorded an increase of $29,703 in its fund balance during the current fiscal year. The
fund balance of $2,484,312 was committed for economic development projects.
The Debt Service Fund has a total fund balance of $3,419,369, all of which is restricted for the
payment of debt service. The net decrease in fund balance during the current fiscal year was
$247,713. 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 financial statements.
The Street Reconstruction Fund recorded an increase of $928,954 in its fund balance during the
current fiscal year. All of the fund balance of $9,480,188 is committed.
Proprietary Funds
The City's proprietary funds provide the same type of information found in the government-wide
financial statements, but in more detail.
Unrestricted net position in the City's enterprise funds totaled $16,332,645 at the end of the fiscal
year. The water, sewer, storm drainage, streetlights, and recycling funds reported increases in net
position from operations of $1,751,642, $520,776, $469,970, $42,269, $17,855, respectively.
7.1
City of Crystal
Management's Discussion and Analysis
26
FINANCIAL ANALYSIS OF THE CITY'S FUNDS (CONTINUED)
Budget Highlights
The City's General Fund budget was not amended during the year. The City Council adopted a
balanced General Fund budget which anticipated a 13.48% increase in expenditures over the prior year
budget. The emphasis for the 2024 budget was to focus on meeting the service demands of the
community and legislative mandates, provide competitive wages and benefits to attract and retain
quality people to provide effective services to residents and business, invest in future capital needs
including parks and street improvements, and increase reserve targets of the General Fund.
Total actual revenues in the General Fund exceeded the final budget by $4,724. Some of the
significant variances between the budget and actual results include:
• Intergovernmental revenue was $104,360 over budget due to increases in police and state
aid.
• Licenses and permits exceeded budget by $81,347 as a result of more permits issued than
anticipated.
• Interest revenue was $78,213 over budget due to strong investment returns.
• Property taxes were $229,577 under budget due to fewer collections within the year.
Actual expenditures in the General Fund were $50,491 lower than the budget primarily due to the
timing of park and recreation projects and the temporary closure of the aquatic center for
construction.
Capital Assets
The City's net capital assets for its governmental and business-type activities as of December 31, 2024,
are $103,069,349. This balance represents a net increase of $1,632,118 from the prior year. Additional
details of capital asset activity for the year can be found in Note 6 in the notes to the financial
statements.
Long-term Debt
The City's total long-term debt decreased by $606,325, or 6.1%, 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
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 $84,436,338. The City
currently has no outstanding General Obligation debt.
7.1
City of Crystal
Management's Discussion and Analysis
27
Economic Factors and Next Year's Budgets and Rates
Economic factors affect the preparation of annual budgets. The following factors were considered in
preparing the City's budget for the 2025 fiscal year:
• The 2025 budget includes a 16.08% overall tax levy increase. This will be supplemented by
increases in other revenues to cover inflationary increases within the operating budget.
• Additional significant factors that influenced the 2025 budget preparation included the
increase of a planned budget surplus to replenish the general fund balance, a minor increase in
Local Government Aid, further reallocation of City Manager wages from the EDA Fund to the
General Fund, three new full-time positions and one part-time position, increased investment
in Internal Service Funds Capital reserves, an increase for forestry efforts, a classification and
compensation study, an increase in street maintenance funding, and the purchase of new
budgeting software.
Requests for Information
Questions concerning any of the information provided in this report or requests for additional
information should be addressed to:
City of Crystal
Attn: Finance Director
4141 Douglas Drive N.
Crystal, MN 55422
7.1
28 28
(THIS PAGE IS LEFT BLANK INTENTIONALLY)
7.1
29
BASIC FINANCIAL STATEMENTS
7.1
See notes to basic financial statements. 30
Governmental
Activities
Business-Type
Activities Total
Assets
Cash and investments (including cash equivalents) 26,613,518$ 7,358,585$ 33,972,103$
Temporarily restricted cash 192,323 - 192,323
Accrued interest 114,657 - 114,657
Accounts receivable 162,670 2,387,587 2,550,257
Delinquent taxes receivable 229,734 - 229,734
Special assessments receivable 4,729,308 482,786 5,212,094
Due from other governments 1,891,919 1,089,110 2,981,029
Lease receivable 889,204 - 889,204
Internal balances (1,400,000) 1,400,000 -
Inventory 24,204 82,598 106,802
Prepaid items 669 193,011 193,680
Land held for resale 124,000 - 124,000
Equity interest in joint venture 1,176,917 6,146,284 7,323,201
Capital assets (net of accumulated depreciation/amortization,
where applicable)
Land 6,860,536 759,061 7,619,597
Buildings and structures 25,797,616 - 25,797,616
Improvements other than buildings 4,147,239 200,096 4,347,335
Machinery and equipment 1,912,755 1,180,836 3,093,591
Office equipment and furnishings 146,869 - 146,869
Software 222,855 3,926 226,781
Vehicles and trailers 1,957,846 - 1,957,846
Infrastructure 30,384,159 24,106,760 54,490,919
Construction in progress 3,484,752 1,675,187 5,159,939
Leased asset - vehicles 228,856 - 228,856
Total assets 109,892,606 47,065,827 156,958,433
Deferred Outflows of Resources
Pension-related deferred outflows of resourecs 6,231,321 59,811 6,291,132
OPEB-related deferred outflows of resources 519,394 50,071 569,465
Total deferred outflows of resources 6,750,715$ 109,882$ 6,860,597$
Liabilities
Accounts and other current liabilities 1,684,354$ 2,181,308$ 3,865,662$
Interest payable 82,668 - 82,668
Unearned revenue 483,098 - 483,098
Noncurrent liabilities
Due within one year 1,976,155 32,818 2,008,973
Due in more than one year 7,216,133 33,368 7,249,501
Total OPEB liability, due within one year - 11,321 11,321
Total OPEB liability, due in more than one year 1,802,839 162,478 1,965,317
Net pension liability, due in more than one year 5,518,718 318,713 5,837,431
Total liabilities 18,763,965 2,740,006 21,503,971
Deferred Inflows of Resources
Pension-related deferred inflows of resources 8,125,066 224,742 8,349,808
OPEB-related deferred inflows of resources 820,474 79,097 899,571
Deferred inflows of resources related to lease receivable 845,914 - 845,914
Total deferred inflows of resources 9,791,454 303,839 10,095,293
Net Position
Net investment in capital assets 67,077,943 27,799,219 94,877,162
Restricted for
TIF projects 1,113,526 - 1,113,526
Debt service 7,111,721 - 7,111,721
Special projects 542,778 - 542,778
Unrestricted 12,241,934 16,332,645 28,574,579
Total net position 88,087,902$ 44,131,864$ 132,219,766$
City of Crystal
Statement of Net Position
December 31, 2024
7.1
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 3,112,671$ 274,068$ 55,317$ 33,675$ (2,749,611)$ -$ (2,749,611)$
Public safety 11,753,929 197,324 941,842 1,516,075 (9,098,688) - (9,098,688)
Public works 4,875,054 - 116,645 646,275 (4,112,134) - (4,112,134)
Recreation 5,124,584 468,494 144,410 423,756 (4,087,924) - (4,087,924)
Community development 1,696,766 1,003,652 - 35,127 (657,987) - (657,987)
Interest on long-term debt 202,745 - - - (202,745) - (202,745)
Total governmental activities 26,765,749 1,943,538 1,258,214 2,654,908 (20,909,089) - (20,909,089)
Business-type activities
Water 4,221,558 5,449,141 720,775 - - 1,948,358 1,948,358
Sanitary sewer 2,895,750 3,685,816 184 579 - 790,829 790,829
Storm drainage 1,047,966 1,426,553 - 99,372 - 477,959 477,959
Street lights 195,671 225,286 - - - 29,615 29,615
Recycling 549,812 572,516 - - - 22,704 22,704
Total business-type activities 8,910,757 11,359,312 720,959 99,951 - 3,269,465 3,269,465
Total primary government 35,676,506$ 13,302,850$ 1,979,173$ 2,754,859$ (20,909,089) 3,269,465 (17,639,624)
General revenues
Property taxes 16,812,947 - 16,812,947
Unrestricted grants and state aids 2,305,152 - 2,305,152
Unrestricted investment earnings 856,180 254,232 1,110,412
Other general revenue 143,463 - 143,463
Gain on sale of capital assets 48,775 - 48,775
Transfers 721,185 (721,185) -
Total general revenues and transfers 20,887,702 (466,953) 20,420,749
Change in net position (21,387) 2,802,512 2,781,125
Net position - beginning 88,109,289 41,329,352 129,438,641
Net position - ending 88,087,902$ 44,131,864$ 132,219,766$
Functions/Programs
City of Crystal
Statement of Activities
Year Ended December 31, 2024
Net (Expense) Revenues
and Changes in Net Position
7.1
See notes to basic financial statements. 32
General Fund Debt Service
Street
Reconstruction -
Capital Projects
Assets
Cash and investments 7,554,811$ 3,412,243$ 5,732,460$
Temporarily restricted cash 192,323 - -
Taxes receivable 209,165 - 6,337
Special assessments receivable 141,834 3,782,379 719,956
Accounts receivable 124,115 - -
Lease receivable 889,204 - -
Accrued interest 114,657 - -
Advances to other funds 534,316 - 4,800,000
Due from other governments 351,162 - 104,391
Inventories 24,204 - -
Prepaid items 669 - -
Land held for resale - - -
Total assets 10,136,460$ 7,194,622$ 11,363,144$
Liabilities
Accounts payable 108,886$ 233$ 317,338$
Due to other governments 50,931 - -
Salaries and benefits payable 554,383 - -
Deposits payable 192,323 - -
Contracts payable - - -
Unearned revenue 207,016 - 104,391
Total liabilities 1,113,539 233 421,729
Deferred Inflows of Resources
State aid related deferred inflows of resources - - 737,707
Unavailable revenue - property taxes 119,894 - 6,337
Unavailable revenue - special assessments 141,277 3,775,020 717,183
Deferred inflows of resources related to lease receivable 845,914 - -
Total deferred inflows of resources 1,107,085 3,775,020 1,461,227
Fund Balances
Nonspendable 24,873 - -
Restricted - 3,419,369 -
Committed 1,401,517 - 9,480,188
Assigned - - -
Unassigned 6,489,446 - -
Total fund balances 7,915,836 3,419,369 9,480,188
Total liabilities, deferred inflow of
resources, and fund balances 10,136,460$ 7,194,622$ 11,363,144$
City of Crystal
Balance Sheet - Governmental Funds
December 31, 2024
7.1
33
Other
Governmental
Funds
Total
Governmental
Funds
7,622,025$ 24,321,539$
- 192,323
14,232 229,734
85,139 4,729,308
20,000 144,115
- 889,204
- 114,657
1,170,000 6,504,316
11,219 466,772
- 24,204
- 669
124,000 124,000
9,046,615$ 37,740,841$
109,861$ 536,318$
412 51,343
11,162 565,545
5,000 197,323
8,796 8,796
171,691 483,098
306,922 1,842,423
- 737,707
12,426 138,657
85,139 4,718,619
- 845,914
97,565 6,440,897
- 24,873
1,656,304 5,075,673
6,866,018 17,747,723
119,806 119,806
- 6,489,446
8,642,128 29,457,521
9,046,615$ 37,740,841$
7.1
34
(THIS PAGE IS LEFT BLANK INTENTIONALLY)
7.1
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, 2024
Total fund balances - governmental funds 29,457,521$
Cost of capital assets 98,944,916
Less accumulated depreciation/amortization (58,139,044)
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 138,657
Special assessments 4,718,619
State shared taxes 737,707
Long-term liabilities are included in net position but are excluded from fund balances until due
and payable.
Bond principal payable (7,175,000)
Premium on debt (230,884)
Discount on debt 1,405
Lease liability (240,253)
Interest payable (82,668)
Compensated absences payable (1,401,517)
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 (820,474)
Deferred outflows of resources related to OPEB 519,394
Total OPEB liability (1,802,839)
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 (8,125,066)
Deferred outflows of resources related to pensions 6,231,321
Net pension liability (5,518,718)
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. 29,697,908
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 1,176,917
Total net position - governmental activities 88,087,902$
Amounts reported for governmental activities in the Statement of Net Position are different because:
Capital assets used in governmental activities are not current financial resources and, therefore,
are not reported as assets in governmental funds.
7.1
See notes to basic financial statements. 36
General Fund Debt Service
Street
Reconstruction -
Capital Projects
Revenues
Property taxes 14,662,642$ -$ 529,047$
Special assessments 60,135 1,037,232 244,615
Licenses and permits 999,807 - -
Intergovernmental 3,119,833 - 1,089,587
Charges for services 706,867 - -
Fine and forfeitures 179,607 - -
Interest 125,213 109,548 205,787
Miscellaneous 21,693 - 6,598
Total revenues 19,875,797 1,146,780 2,075,634
Expenditures
Current
General government 2,497,405 - -
Public safety 10,518,427 - -
Public works 2,022,110 - -
Recreation 4,105,066 - -
Economic development 900,942 - -
Debt service
Principal - 1,165,000 -
Interest and other charges - 229,493 -
Capital outlay - - 1,132,396
Total expenditures 20,043,950 1,394,493 1,132,396
Excess of revenues over
(under) expenditures (168,153) (247,713) 943,238
Other Financing Sources (Uses)
Proceeds from sale of capital asset 5,678 - -
Lease issuance - - -
Transfers in 1,950,093 - -
Transfers out (1,797) - (14,284)
Total other financing sources (uses)1,953,974 - (14,284)
Net change in fund
balances 1,785,821 (247,713) 928,954
Fund Balances
Beginning of year 6,130,015 3,667,082 8,551,234
End of year 7,915,836$ 3,419,369$ 9,480,188$
City of Crystal
Statement of Revenues, Expenditures, and
Changes in Fund Balances - Governmental Funds
Year Ended December 31, 2024
7.1
37
Other
Governmental
Funds
Total
Governmental
Funds
1,666,132$ 16,857,821$
32,839 1,374,821
- 999,807
622,551 4,831,971
45,843 752,710
- 179,607
248,578 689,126
104,373 132,664
2,720,316 25,818,527
59,655 2,557,060
78,470 10,596,897
- 2,022,110
860 4,105,926
837,489 1,738,431
100,826 1,265,826
16,228 245,721
723,080 1,855,476
1,816,608 24,387,447
903,708 1,431,080
- 5,678
129,294 129,294
151,797 2,101,890
(640,132) (656,213)
(359,041) 1,580,649
544,667 3,011,729
8,097,461 26,445,792
8,642,128$ 29,457,521$
7.1
38
(THIS PAGE IS LEFT BLANK INTENTIONALLY)
7.1
See notes to basic financial statements. 39
3,011,729$
Capital outlays are reported in governmental funds as expenditures. However, in the Statement
of Activities, the cost of those assets is allocated over the estimated useful lives as depreciation
expense.
Capital outlays 1,663,799
Depreciation/amortization expense (3,564,030)
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. (1,827,880)
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 1,165,000
Lease principal payments and adjustments 104,663
Lease issuance (129,294)
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 3,058
Compensated absences (477,113)
OPEB expense 71,973
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 (524,149)
Pension-related revenues 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.
State aid for pensions 182,362
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. 260,862
Net income (loss) from equity interests is included in the change in net position but is excluded
from the change in fund balances. (2,681)
Change in net position - governmental activities (21,387)$
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
City of Crystal
Reconciliation of the Statement of Revenues,
Expenditures, and Changes in Fund Balances to
Year Ended December 31, 2024
7.1
See notes to basic financial statements. 40
Original Final Actual Amounts
Revenues
Property taxes 15,271,008$ 14,892,219$ 14,662,642$ (229,577)$
Special assessments 51,950 31,950 60,135 28,185
Licenses and permits 903,860 918,460 999,807 81,347
Intergovernmental 1,559,486 3,015,473 3,119,833 104,360
Charges for services 796,195 752,595 706,867 (45,728)
Fine and forfeitures 186,500 188,876 179,607 (9,269)
Interest 100,000 47,000 125,213 78,213
Miscellaneous revenues 44,500 24,500 21,693 (2,807)
Total revenues 18,913,499 19,871,073 19,875,797 4,724
Expenditures
General government
Mayor and council 407,464 245,793 115,952 (129,841)
Administration 1,328,458 1,369,964 1,368,492 (1,472)
Human resources 71,147 68,148 50,809 (17,339)
Assessing 280,171 284,170 186,815 (97,355)
Legal 67,707 98,090 88,312 (9,778)
Elections 115,687 115,645 77,752 (37,893)
Finance 567,507 565,303 609,161 43,858
City buildings - - 112 112
Total general government 2,838,141 2,747,113 2,497,405 (249,708)
Public safety
Police 7,929,619 8,356,003 8,238,619 (117,384)
Fire 2,031,121 2,021,738 2,279,808 258,070
Total public safety 9,960,740 10,377,741 10,518,427 140,686
Public works
Engineering 551,918 510,773 457,340 (53,433)
Park maintenance 1,465,828 1,499,653 1,640,913 141,260
Street maintenance 1,434,751 1,499,806 1,564,770 64,964
Forestry 105,529 105,529 265,625 160,096
Total public works 3,558,026 3,615,761 3,928,648 312,887
Recreation
Recreation 1,274,743 1,268,056 1,310,124 42,068
Community center 654,989 688,460 703,880 15,420
Waterslide/swimming pool 468,352 542,698 184,524 (358,174)
Total recreation 2,398,084 2,499,214 2,198,528 (300,686)
Variance with
Final Budget
Budgeted Amounts
City of Crystal
Statement of Revenues, Expenditures, and
Changes in Fund Balances -
Budget and Actual - General Fund
Year Ended December 31, 2024
7.1
See notes to basic financial statements. 41
Original Final Actual Amounts
Expenditures (Continued)
Community development
Planning and code enforcement 862,680$ 854,612$ 900,942$ 46,330$
Total expenditures 19,617,671 20,094,441 20,043,950 (50,491)
Excess of revenues over
(under) expenditures (704,172) (223,368) (168,153) 55,215
Other Financing Sources
Proceeds from sale of capital asset - - 5,678 5,678
Transfers in 704,172 711,601 1,950,093 1,238,492
Transfers out - (488,233) (1,797) 486,436
Total other financing
sources 704,172 223,368 1,953,974 1,730,606
Net change in fund balances -$ -$ 1,785,821 1,785,821$
Fund Balance
Beginning of year 6,130,015
End of year 7,915,836$
Budgeted Amounts
Variance with
Final Budget -
Positive
(Negative)
City of Crystal
Statement of Revenues, Expenditures, and
Changes in Fund Balances -
Budget and Actual - General Fund
Year Ended December 31, 2024
7.1
See notes to basic financial statements. 42
Water Sewer Storm Drainage Streetlights
Assets
Current assets
Cash and investments (including cash equivilants)3,403,124$ 443,201$ 2,364,621$ 1,032,059$
Special assessment receivable 469,851 12,935 - -
Accounts receivable 1,186,410 775,064 289,263 43,656
Advances to other funds - - 100,000 -
Due from other governments 623,884 344,599 120,627 -
Inventories 58,397 17,463 6,738 -
Prepaid expenses 297 157,385 35,329 -
Total current assets 5,741,963 1,750,647 2,916,578 1,075,715
Noncurrent assets
Equity interest in joint venture 6,146,284 - - -
Advances to other funds 900,000 - 400,000 -
Capital assets
Land 42,200 - 716,861 -
Infrastructure 6,638,433 13,205,141 19,788,809 648,391
Buildings - - - -
Improvements other than buildings - - 199,960 16,861
Office equipment and furnishings - - - -
Software 29,445 - - -
Machinery and equipment 2,300,301 568,424 11,805 -
Vehicles - - - -
Construction in progress 989,237 653,049 32,901 -
Total capital assets 9,999,616 14,426,614 20,750,336 665,252
Less accumulated depreciation/ amortization (3,542,880) (5,546,818) (8,333,815) (492,439)
Net capital assets 6,456,736 8,879,796 12,416,521 172,813
Total noncurrent assets 13,503,020 8,879,796 12,816,521 172,813
Total assets 19,244,983$ 10,630,443$ 15,733,099$ 1,248,528$
Deferred Outflows of Resources
Pension-related deferred outflows 24,111$ 23,802$ 11,898$ -$
OPEB-related deferred outflows 20,129 19,961 9,981 -
Total deferred outflows of resources 44,240$ 43,763$ 21,879$ -$
Liabilities
Current liabilities
Accounts payable 489,810$ 490,413$ 3,134$ 10,476$
Contracts payable - 126,647 - -
Salaries and benefits payable 34,023 33,786 16,893 -
Deposits payable 5,539 - - -
Advances from other funds - - - -
Due to other governments 964,207 4,278 2,102 -
Current compensated absences 13,127 13,127 6,564 -
Current OPEB liability 4,528 4,534 2,259 -
Current SBITA liability - - - -
Total current liabilities 1,511,234 672,785 30,952 10,476
Noncurrent liabilities
Compensated absences 13,347 13,347 6,674 -
Advances from other funds - - - -
Net pension liability 128,479 126,832 63,402 -
Total OPEB liability 65,340 64,753 32,385 -
SBITA liability - - - -
Total noncurrent liabilities 207,166 204,932 102,461 -
Total liabilities 1,718,400$ 877,717$ 133,413$ 10,476$
Deferred Inflows of Resources
Pension-related deferred inflows 90,598$ 89,436$ 44,708$ -$
OPEB-related deferred intflows 31,797 31,533 15,767 -
Total deferred intflows of resources 122,395 120,969 60,475 -
Net Position
Net investment in capital assets 6,456,736 8,753,149 12,416,521 172,813
Unrestricted 10,991,692 922,371 3,144,569 1,065,239
Total net position 17,448,428$ 9,675,520$ 15,561,090$ 1,238,052$
City of Crystal
Statement of Net Position - Proprietary Funds
December 31, 2024
7.1
43
Recycling Utility Totals
115,580$ 7,358,585$ 2,291,979$
- 482,786 -
93,194 2,387,587 18,555
- 100,000 -
- 1,089,110 1,425,147
- 82,598 -
- 193,011 -
208,774 11,693,677 3,735,681
- 6,146,284 -
- 1,300,000 -
- 759,061 -
- 40,280,774 -
- - 36,635,450
- 216,821 2,425,402
- - 635,132
- 29,445 415,921
- 2,880,530 5,086,427
- - 4,643,426
- 1,675,187 2,884,265
- 45,841,818 52,726,023
- (17,915,952) (18,388,412)
- 27,925,866 34,337,611
- 35,372,150 34,337,611
208,774$ 47,065,827$ 38,073,292$
-$ 59,811$ -$
- 50,071 -
-$ 109,882$ -$
-$ 993,833$ 45,591$
- 126,647 274,769
- 84,702 4,669
- 5,539 -
- - 1,584,316
- 970,587 -
- 32,818 -
- 11,321 -
- - 32,338
- 2,225,447 1,941,683
- 33,368 -
- - 6,320,000
- 318,713 -
- 162,478 -
- - 113,701
- 514,559 6,433,701
-$ 2,740,006$ 8,375,384$
-$ 224,742$ -$
- 79,097 -
- 303,839 -
- 27,799,219 33,916,803
208,774 16,332,645 (4,218,895)
208,774$ 44,131,864$ 29,697,908$
Governmental
Activities -
Internal Service
Funds
7.1
See notes to basic financial statements. 44
Water Sewer Storm Drainage Streetlights
Operating Revenues
Charges for services 5,449,141$ 3,685,816$ 1,426,553$ 225,286$
Other revenues 293,560 184 - -
Miscellaneous - - - -
Total operating revenues 5,742,701 3,686,000 1,426,553 225,286
Operating Expenses
Personal services 463,311 428,757 214,898 -
Other services 472,040 451,894 250,822 31,086
Supplies 79,270 47,176 10,198 176
Insurance - - - -
Water purchases 2,976,885 - - -
Sewage disposal charges - 1,718,641 - -
Electric service - - - 131,289
Recycling charges - - - -
Depreciation 228,452 249,282 572,048 33,120
Bad debt expense 400 - - -
Equipment - - - -
Total operating expenses 4,220,358 2,895,750 1,047,966 195,671
Operating income (loss)1,522,343 790,250 378,587 29,615
Nonoperating Revenues (Expenses)
Investment income 124,105 11,623 73,426 36,089
Interest expense (1,200) - - -
Gain (loss) on sale of capital assets - - - -
Net income (loss) from joint venture 427,215 - - -
Total nonoperating revenue (expenses)550,120 11,623 73,426 36,089
Income before capital contributions and transfers 2,072,463 801,873 452,013 65,704
Capital contributions - 579 99,372 -
Transfers in - 26,023 1,383 -
Transfers out (320,821) (307,699) (82,798) (23,435)
Change in net position 1,751,642 520,776 469,970 42,269
Net position - beginning of year 15,696,786 9,154,744 15,091,120 1,195,783
Net position - end of year 17,448,428$ 9,675,520$ 15,561,090$ 1,238,052$
City of Crystal
Statement of Revenues, Expenses, and Changes
in Net Position - Proprietary Funds
Year Ended December 31, 2024
7.1
45
Recycling
Utility Totals
572,516$ 11,359,312$ 2,607,735$
- 293,744 -
- - 104,855
572,516 11,653,056 2,712,590
- 1,106,966 111,871
262 1,206,104 1,377,318
- 136,820 23,066
- - 27,054
1 2,976,886 -
- 1,718,641 -
- 131,289 -
549,549 549,549 -
- 1,082,902 1,785,978
- 400 -
- - 141,188
549,812 8,909,557 3,466,475
22,704 2,743,499 (753,885)
8,989 254,232 180,463
- (1,200) (396)
- - 43,097
- 427,215 -
8,989 680,247 223,164
31,693 3,423,746 (530,721)
- 99,951 1,516,075
- 27,406 -
(13,838) (748,591) (724,492)
17,855 2,802,512 260,862
190,919 41,329,352 29,437,046
208,774$ 44,131,864$ 29,697,908$
Governmental
Activities -
Internal
Service Funds
7.1
See notes to basic financial statements. 46
Water Sewer Storm Drainage Street Lights
Cash Flows - Operating Activities
Receipts from customers 5,188,208$ 3,299,133$ 1,286,227$ 218,960$
Interfund services provided and used - - - -
Payments to suppliers (2,519,111) (1,691,508) (311,528) (179,401)
Payments to employees (455,621) (424,174) (212,282) -
Miscellaneous revenue - - - -
Net cash flows - operating activities 2,213,476 1,183,451 762,417 39,559
Cash Flows - Noncapital Financing Activities
SBITA addition - - - -
Transfer from other funds - 26,023 1,383 -
Transfer to other funds (320,821) (307,699) (82,798) (23,435)
Net cash flows - noncapital financing activities (320,821) (281,676) (81,415) (23,435)
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 - 4,723 - -
Payments on special assessments (53,381) - - -
Interest paid on debt (1,200) - - -
Proceeds from disposal of capital assets - - - -
Grants and contributions - 579 99,372 -
Acquisition of capital assets (1,336,512) (666,742) (41,846) -
Net cash flows - capital and related financing activities (1,451,093) (631,440) 57,526 30,000
Cash Flows - Investing Activities
Interest and dividends received 124,105 11,623 73,426 36,089
Net change in cash and cash equivalents 565,667 281,958 811,954 82,213
Cash and cash equivalents, January 1 2,837,457 161,243 1,552,667 949,846
Cash and cash equivalents, December 31 3,403,124$ 443,201$ 2,364,621$ 1,032,059$
Reconciliation of Operating Income (Loss) to Net Cash Flows -
Operating Activities
Operating income (loss) 1,522,343$ 790,250$ 378,587$ 29,615$
Adjustments to reconcile operating income (loss) to
net cash flows - operating activities
Depreciation expense 228,452 249,282 572,048 33,120
Accounts receivable 46,843 (42,268) (19,699) (6,326)
Due from other governments (601,336) (344,599) (120,627) -
Prepaid items 1,423 (12,445) (34,469) -
Inventory (205) (2,836) (4,787) -
Accounts payable 313,227 432,190 (4,161) (16,850)
Contracts payable (16,346) 126,647 - -
Due to other governmental units 709,846 (17,353) (7,091) -
Salaries payable 18,655 18,419 9,209 -
Deposits payable 1,539 - - -
OPEB 10,822 10,039 5,144 -
Pension related activity (11,375) (13,463) (6,531) -
Compensated absences payable (10,412) (10,412) (5,206) -
SBITA payable
Total adjustments 691,133 393,201 383,830 9,944
Net cash flows -
operating activities 2,213,476$ 1,183,451$ 762,417$ 39,559$
Noncash Capital and Related Financing Activities
SBITA asset Addition -$ -$ -$ -$
Net income (loss) from joint venture 427,215$ -$ -$ -$
City of Crystal
Statement of Cash Flows - Proprietary Funds
Year Ended December 31, 2024
7.1
47
Recycling Utility Totals
Internal Service
Funds
543,634$ 10,536,162$ -$
- - 1,911,333
(549,812) (5,251,360) (1,472,757)
- (1,092,077) (111,871)
- - 141,234
(6,178) 4,192,725 467,939
- - (195,143)
- 27,406 -
(13,838) (748,591) (724,492)
(13,838) (721,185) (919,635)
- (60,000) -
- 60,000 36,203
- 4,723 -
- (53,381) -
- (1,200) (396)
- - 121,707
- 99,951 1,516,075
- (2,045,100) (4,270,604)
- (1,995,007) (2,597,015)
8,989 254,232 180,463
(11,027) 1,730,765 (2,868,248)
126,607 5,627,820 5,160,227
115,580$ 7,358,585$ 2,291,979$
22,704$ 2,743,499$ (753,885)$
- 1,082,902 1,785,978
(28,882) (50,332) 36,621
- (1,066,562) (696,644)
- (45,491) 8,654
- (7,828) -
- 724,406 (56,573)
- 110,301 -
- 685,402 (2,058)
- 46,283 (193)
- 1,539 -
- 26,005 -
- (31,369) -
- (26,030) -
146,039
(28,882) 1,449,226 1,221,824
(6,178)$ 4,192,725$ 467,939$
-$ -$ 195,143$
-$ 427,215$ -$
7.1
See notes to basic financial statements. 48
Hennepin
Recycling
Group
Custodial Fund
Assets
Cash and investments
(including cash equivalents)25,972$
Liabilities
Due to other governments 174,394$
Net Position
Held in custody for other governmental units -$
Hennepin
Recycling
Group
Custodial Fund
Additions
Charges for serivces 1,517,128$
Investment income (100)
Intergovernmental 314,320
Total additions 1,831,348
Deductions
Recycling services 1,907,786
Administrative and grant services 17,097
Other contract and professional services 96,600
Office supplies 1,937
Rentals 18,800
Total deductions 2,042,220
Change in net position (210,872)
Net Position
Beginning of year 210,872
End of year -$
City of Crystal
Statement of Fiduciary Net Position
December 31, 2024
Statement of Changes Fiduciary Net Position
Year Ended December 31, 2024
7.1
49
City of Crystal
Notes to Basic Financial Statements
NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
A. Reporting Entity
The City of Crystal (the City) operates under the Home Rule Charter form of government in
accordance with applicable State of Minnesota Statutes. The charter prescribes a Council-Manager
form of organization. The governing body consists of a seven-member City Council elected at large to
serve four-year staggered terms.
The accompanying financial statements present the activities of the government. Certain
organizations have been defined in accordance with GASB Statement No. 14 and are presented in this
report as follows:
1. Blended Component Units
Blended component units, although legally separate entities, are, in substance, part of the
government's operations. The City has one blended component unit which is reported as if it were
part of the City.
The Economic Development Authority (EDA), in and for the City, was created by the City to
provide housing and redevelopment assistance through the administration of various programs. It
levies taxes to provide funds for redevelopment in the City.
Although the EDA is legally separate from the City, it is reported as if it were part of the primary
government. Its governing board is comprised of the City Council members and the City has
operational responsibility of the EDA, meaning it manages the EDA's activities in essentially the
same manner in which it manages its own programs and departments. The EDA is reported as a
special revenue fund. It does not issue a separate set of financial statements.
2. Joint Ventures
A joint venture is a legal entity or other organization that results from a contractual agreement
and that is owned, operated, or governed by two or more participants as a separate and specific
activity subject to joint control. The participants retain either an ongoing financial interest or an
ongoing financial responsibility. The City participates in two joint ventures – the Golden Valley,
Crystal, New Hope Joint Water Commission, and the West Metro Fire-Rescue District. Descriptions
and other financial information for these organizations are included in the note entitled Joint
Ventures and Jointly Governed Organizations.
3. Jointly Governed Organizations
The City has several agreements with governmental and other entities that provide reduced
costs, better service, and additional benefits to participants. The various programs in which the
City participates in are described in the note entitled Joint Ventures and Jointly Governed
Organizations.
B. Government-Wide and Fund Financial Statements
The government-wide financial statements (i.e., the Statement of Net Position and the Statement of
Activities) report information on all of the non-fiduciary activities of the primary government and its
component units. Governmental activities, which normally are supported by taxes and
intergovernmental revenues, are reported separately from business-type activities, which rely to a
significant extent on charges for sales and/or services and fees.
7.1
50
City of Crystal
Notes to Basic Financial Statements
NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
B. Government-Wide and Fund Financial Statements (Continued)
Separate financial statements are provided for governmental funds, proprietary funds, and fiduciary
funds, even though the latter are excluded from the government-wide financial statements. Major
individual governmental funds and major individual enterprise funds are reported as separate
columns in the fund financial statements. Aggregated information for the remaining nonmajor
governmental funds is reported in a single column in the fund financial statements.
The Statement of Activities demonstrates the degree to which the direct expenses of a given
function or segment is offset by program revenues. Direct expenses are those that are clearly
identifiable with a specific function or segment. The City does not allocate indirect expenses.
Program revenues include 1) charges to customers or applicants who purchase, use, or directly
benefit from goods, services, or privileges provided by a given function or segment, 2) operating
grants and contributions restricted to meeting the operational requirements of a particular function,
and 3) capital grants and contributions restricted to meeting the capital requirements of a particular
function, including special assessments. Internally dedicated resources are reported as general
revenues rather than as program revenues. Likewise, general revenues include all taxes.
As a general rule, the effect of interfund activity has been eliminated from the government-wide
financial statements. However, charges between the City's enterprise funds and other functions (i.e.,
interfund services provided and used) are not eliminated, as that would distort the direct costs and
program revenues reported in those functions. Depreciation expense is included in the direct
expenses of each function. Interest on long-term debt is considered an indirect expense and is
reported separately under governmental activities on the Statement of Activities.
C. Measurement Focus, Basis of Accounting, and Financial Statement Presentation
The government-wide financial statements are reported using the economic resources measurement
focus and the accrual basis of accounting, as are the proprietary fund financial statements. Revenues
are recorded when earned and expenses are recorded when a liability is incurred, regardless of the
timing of related cash flows. Property taxes are recognized as revenues in the year for which they
are levied. Grants and similar items are recognized as revenue as soon as all eligibility requirements
imposed by the provider have been met.
Governmental fund financial statements are reported using the current financial resources
measurement focus and the modified accrual basis of accounting. Revenues are recognized as soon as
they are both measurable and available. "Measurable" means the amount of the transaction can be
determined and "available" means collectible within the current period or soon enough thereafter to
be used to pay liabilities of the current period.
For this purpose, the City considers revenues to be available if they are collected within 60 days
after year-end. Major revenues susceptible to accrual include property taxes, special assessments,
intergovernmental revenues, charges for services, and investment earnings. Major revenues not
susceptible to accrual include licenses, permits, inspection fees, and miscellaneous revenues. Such
revenues are recorded only as received because they are not measurable until collected. Issuance of
bonds and proceeds from sale of property and equipment are reported as other financing sources .
7.1
51
City of Crystal
Notes to Basic Financial Statements
NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
C. Measurement Focus, Basis of Accounting, and Financial Statement Presentation (Continued)
Expenditures generally are recorded when a liability is incurred, as under accrual accounting.
However, debt service expenditures, as well as expenditures related to compensated absences and
claims and judgments, are recorded only when payment is due.
Proprietary funds distinguish operating revenues and expenses from non-operating items. Operating
revenues and expenses generally result from providing services and producing and delivering goods in
connection with a proprietary fund's principal ongoing operations. The principal operating revenues
of the enterprise funds and of the government's internal service fund are charges to customers for
sales and services. Operating expenses for enterprise funds and the internal service fund include the
cost of sales and services, administrative expenses, and depreciation on capital assets. All revenues
and expenses not meeting this definition are reported as non-operating revenues and expenses.
The Custodial Fund is presented in the fiduciary fund financial statements. Since, by definition,
these assets are being held for the benefit of a third party (other local governments, private parties,
etc.) and cannot be used to address activities or obligations of the City, this fund is not incorporated
into the government-wide statements. This fund uses the economic resources measurement focus
and the accrual basis of accounting.
When both restricted and unrestricted resources are available for use, it is the government's policy
to use restricted resources first, then unrestricted resources as they are needed.
Description of Funds:
The government reports the following major governmental funds:
General Fund – This is the government's primary operating fund. It accounts for all financial
resources of the general government, except those required to be accounted for in another fund.
Debt Service – This fund accounts for resources accumulated, and payments made, for principal
and interest on long-term general obligation debt and tax increment revenue notes of
governmental funds.
Street Reconstruction – Capital Projects – This fund is used to account for ongoing street
reconstruction projects in the City. The City has been divided into a total of sixteen
reconstruction phases.
The government reports the following major proprietary funds:
Water Fund – This fund accounts for the provision of water to residents and customers of the
City. The cities of Crystal, Golden Valley, and New Hope established a joint water commission in
1963 to provide for the creation and maintenance of a joint water supply, storage, and
distribution system through which water purchased from the City of Minneapolis can be supplied
to the population of the member cities.
7.1
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.
7.1
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City of Crystal
Notes to Basic Financial Statements
NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
D. Assets, Liabilities, Deferred Outflows/Inflows of Resources, and Net Position or Equity
(Continued)
1. Deposits and Investments (Continued)
In accordance with GASB Statement No. 79, the Minnesota Municipal Investment Pool securities
are valued at amortized cost, which approximates fair value. There are no restrictions or
limitations on withdrawals from the 4M Liquid Asset Fund. Investments in the 4M Plus must be
deposited for a minimum of 14 calendar days. Withdrawals prior to the 14-day restriction period
will be subject to a penalty equal to seven days interest on the amount withdrawn. Seven days'
notice of redemption is required for withdrawals of investments in the 4M Term Series withdrawn
prior to the maturity date of that series. A penalty could be assessed as necessary to recoup the
Series for any charges, losses, and other costs attributable to the early redemption.
2. Temporarily Restricted Cash
A portion of Cash is reported as temporarily restricted in an amount equal to the balance
reported in Deposits Payable of the General Fund. The amount represents funds collected as
surety on site improvements in progress within the City. Once site improvements have been
satisfactorily completed in accordance with terms of individual agreements, individual amounts
will be released.
3. Receivables
All utility and miscellaneous accounts receivable are reported gross. Since most uncollectible
accounts are able to be certified to Hennepin County for collection with property taxes, no
allowance for uncollectible accounts has been provided.
4. Property Taxes
Property tax levies are set by the City Council in December of each year and are certified to
Hennepin County for collection in the following year. In Minnesota, counties act as collection
agents for all property taxes.
The County spreads all levies over taxable property. Such taxes become a lien on January 1.
Revenues are accrued and recognized in the year collectible, net of delinquencies.
Real property taxes may be paid by taxpayers in two equal installments by May 15 and October 15
of each year. Personal property taxes may be paid by February 28 and June 30 of each year. The
County provides tax settlements to cities and other taxing districts three times a year – in July,
December, and January of the following year.
In the fund financial statements, taxes that remain unpaid at December 31 are classified as
delinquent taxes receivable. They are fully offset by a deferred inflow of resources because they
are not known to be available to finance current expenditures.
7.1
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.
7.1
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
Lease asset - vehicles 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.
7.1
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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.
7.1
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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)
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.
7.1
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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)
14. Compensated Absences (Continued)
Accumulated or vested vacation, compensatory, and sick time estimated to be payable for future
use or 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.
7.1
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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.
7.1
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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.
7.1
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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 $1,794,392 and the bank balance was
$1,920,085. 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
7.1
62
City of Crystal
Notes to Basic Financial Statements
NOTE 2 – DEPOSITS AND INVESTMENTS (CONTINUED)
B. Investments (Continued)
As of December 31, 2024, 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 10,082,785$ 1,615,489$ 7,951,976$ 515,320$ -$
State and local government bonds 12,108,225 - 12,108,225 - -
Money market accounts 10,203,406 10,203,406 - - -
Total 32,394,416$ 11,818,895$ 20,060,201$ 515,320$ -$
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, 2024, 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, 2024:
• $22,191,010 of investments are valued using a matrix pricing model (Level 2 inputs)
7.1
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City of Crystal
Notes to Basic Financial Statements
NOTE 2 – DEPOSITS AND INVESTMENTS (CONTINUED)
B. Investments (Continued)
The following summary reconciles cash and investments to the financial statements:
Cash on hand 1,590$
Carrying amount of deposits 1,794,392
Carrying amount of investments 32,394,416
Total 34,190,398$
Statement of Net Position
Cash and investments 33,972,103$
Cash with fiscal agent 192,323
Statement of Fiduciary Net Position
Cash and investments 25,972
Total deposits and investments 34,190,398$
NOTE 3 – INTERFUND RECEIVABLES AND PAYABLES
A. Advances to/from Other Funds
Balances as of December 31, 2024, are as follows:
Original Amount Due Within
Receivable Fund Payable Fund Amount Outstanding One Year
General Internal Service Funds 534,316$ 534,316$ 534,316$
Street Reconstruction Internal Service Funds 5,000,000 4,800,000 700,000
Other Governmental Funds Internal Service Funds 1,170,000 1,170,000 250,000
Water Internal Service Funds 900,000 900,000 -
Storm Water Internal Service Funds 500,000 500,000 100,000
Total 8,104,316$ 7,904,316$ 1,584,316$
Internal loans to the City Buildings Internal Service Fund totaling $7,570,000 were made to provide
sufficient cash to pay for the renovation and construction costs of the police department facility. It
is projected that these funds would be able to repay the loans with zero percent interest by 2032.
The balance between the General Fund and Internal Service Funds is related to negative cash
balances.
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City of Crystal
Notes to Basic Financial Statements
NOTE 4 – INTERFUND TRANSFERS
Interfund transfers for the year ended December 31, 2024, are as follows:
Non-major
Transfers Out General
Governmental
Funds Sanitary Sewer Storm Drainage Total
General -$ 1,797$ -$ -$ 1,797$
Street Reconstruction - - 14,284 - 14,284
Non-major governmental funds 490,132 150,000 - - 640,132
Internal Service Funds 724,492 - - - 724,492
Water 307,699 - 11,739 1,383 320,821
Sanitary Sewer 307,699 - - - 307,699
Storm Drainage 82,798 - - - 82,798
Streetlights 23,435 - - - 23,435
Recycling 13,838 - - - 13,838
Total 1,950,093$ 151,797$ 26,023$ 1,383$ 2,129,296$
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, 2024, was $77,084.
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City of Crystal
Notes to Basic Financial Statements
NOTE 6 – CAPITAL ASSETS
Capital asset activity for the year ended December 31, 2024, was as follows:
Beginning Ending
Balance Increases Decreases Balance
Governmental activities
Capital assets not being depreciated
Land 6,860,536$ -$ -$ 6,860,536$
Construction in progress 1,517,113 3,530,694 (1,563,055) 3,484,752
Total capital assets
not being depreciated 8,377,649 3,530,694 (1,563,055) 10,345,288
Other capital assets
Buildings and structures 37,546,725 314,131 - 37,860,856
Improvements other than buildings 7,176,584 1,918,445 - 9,095,029
Machinery and equipment 6,874,910 502,268 (189,543) 7,187,635
Office equipment and furnishings 1,037,420 32,895 - 1,070,315
Software 367,864 195,336 - 563,200
Vehicles and trailers 5,357,837 256,753 (252,878) 5,361,712
Traffic and transportation systems 71,699,010 783,316 - 72,482,326
Park systems 7,232,732 22,000 - 7,254,732
Leased asset - vehicles 364,229 129,294 (42,902) 450,621
Total other capital assets
at historical cost 137,657,311 4,154,438 (485,323) 141,326,426
Less accumulated depreciation for
Buildings and structures (11,115,849) (947,391) - (12,063,240)
Improvements other than buildings (4,652,005) (295,785) - (4,947,790)
Machinery and equipment (5,003,756) (382,057) 110,933 (5,274,880)
Office equipment and furnishings (875,418) (48,028) - (923,446)
Software (313,710) (26,635) - (340,345)
Vehicles and trailers (3,180,285) (475,684) 252,103 (3,403,866)
Traffic and transportation systems (45,319,685) (2,681,980) - (48,001,665)
Park systems (960,513) (390,721) - (1,351,234)
Less accumulated amortization for
Leased asset - vehicles (140,176) (101,727) 20,138 (221,765)
Total accumulated
depreciation/ amortization (71,561,397) (5,350,008) 383,174 (76,528,231)
Total other capital assets, net 66,095,914 (1,195,570) (102,149) 64,798,195
Governmental activities capital
assets, net 74,473,563$ 2,335,124$ (1,665,204)$ 75,143,483$
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City of Crystal
Notes to Basic Financial Statements
NOTE 6 – CAPITAL ASSETS (CONTINUED)
Capital asset activity for the year ended December 31, 2024, 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 2,045,935 1,568,622 (1,939,370) 1,675,187
Total capital assets not
being depreciated 2,992,242 1,568,622 (1,939,370) 2,621,494
Other capital assets
Improvements other than buildings 16,861 12,714 - 29,575
Machinery and equipment 2,420,418 460,112 - 2,880,530
Software 29,445 - - 29,445
Utility systems 36,967,601 1,943,022 - 38,910,623
Traffic and transportation systems 1,370,151 - - 1,370,151
Total capital assets
being depreciated 40,804,476 2,415,848 - 43,220,324
Less accumulated depreciation for
Improvements other than buildings (14,823) (1,902) - (16,725)
Machinery and equipment (1,554,010) (145,684) - (1,699,694)
Software (19,630) (5,889) - (25,519)
Utility systems (14,800,281) (897,720) - (15,698,001)
Traffic and transportation systems (444,306) (31,707) - (476,013)
Total accumulated
depreciation (16,833,050) (1,082,902) - (17,915,952)
Total other capital assets, net 23,971,426 1,332,946 - 25,304,372
Business-type activities
capital assets, net 26,963,668$ 2,901,568$ (1,939,370)$ 27,925,866$
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City of Crystal
Notes to Basic Financial Statements
NOTE 6 – CAPITAL ASSETS (CONTINUED)
Depreciation and amortization expense was charged to the various functions of the City as follows:
Governmental activities
General Government 248,321$
Public Safety 692,485
Public Works 2,874,888
Parks and Recreation 1,486,062
Community Development 48,252
Total depreciation and amortization expense - governmental activities 5,350,008$
Business-type activities
Water 228,452$
Sanitary Sewer 249,282
Storm Drainage 572,048
Street Light 33,120
Total depreciation expense - business-type activities 1,082,902$
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City of Crystal
Notes to Basic Financial Statements
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$ 02/01/27 270,000$
G.O. Improvement Bonds, Series 2012A 08/01/12 1.50%-2.13%2,635,000 02/01/28 590,000
G.O. Improvement Bonds, Series 2013A 08/01/13 2.00%-3.50%3,235,000 02/01/29 975,000
G.O. Improvement Bonds, Series 2015A 08/01/15 2.50%-3.00%2,550,000 02/01/31 1,065,000
G.O. Improvement Bonds, Series 2016A 08/25/16 2.00%-2.50%3,330,000 02/01/32 1,620,000
G.O. Improvement Bonds, Series 2017A 09/14/17 2.00%-3.00%4,665,000 02/01/33 2,655,000
Subtotal bonds payable 7,175,000
Lease liability 240,253
SBITA liability 146,039
Unamortized bond premiums/discounts 229,479
Compensated absences payable 1,401,517
Total governmental activities 9,192,288$
Business-type activities
Compensated absences payable 66,186$
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 related 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.
7.1
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City of Crystal
Notes to Basic Financial Statements
NOTE 7 – LONG-TERM DEBT (CONTINUED)
C. Changes in Long-Term Liabilities (Continued)
Long-term liability activity for the year ended December 31, 2024, 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 - 2011A 370,000$ -$ (100,000)$ 270,000$ 95,000$
Improvement Bonds - 2012A 750,000 - (160,000) 590,000 155,000
Improvement Bonds - 2013A 1,180,000 - (205,000) 975,000 205,000
Improvement Bonds - 2015A 1,230,000 - (165,000) 1,065,000 165,000
Improvement Bonds - 2016A 1,845,000 - (225,000) 1,620,000 220,000
Improvement Bonds - 2017A 2,965,000 - (310,000) 2,655,000 310,000
Total improvement bonds 8,340,000 - (1,165,000) 7,175,000 1,150,000
Bond premiums 272,491 - (41,607) 230,884 -
Bond discounts (2,698) - 1,293 (1,405) -
Subtotal 8,609,793 - (1,205,314) 7,404,479 1,150,000
Total bonds payable 8,609,793 - (1,205,314) 7,404,479 1,150,000
SBITA liability - 195,143 (49,104) 146,039 32,338
Lease liability 238,386 129,294 (127,427) 240,253 112,294
Compensated absences payable 924,404 1,835,739 (1,358,626) 1,401,517 681,523
Governmental activity
long-term liabilities 9,772,583$ 2,160,176$ (2,740,471)$ 9,192,288$ 1,976,155$
Business-type activities
Compensated absences payable 92,216$ 30,845$ (56,875)$ 66,186$ 32,818$
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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 Principal Interest
2025 1,150,000$ 182,765$ 112,294$ 13,690$ 32,338$ 3,887$
2026 1,120,000 152,056 67,012 7,132 35,010 3,027
2027 1,090,000 122,151 36,959 3,334 37,843 2,095
2028 985,000 93,930 22,007 825 40,848 1,087
2029 830,000 67,530 1,981 33 - -
2030-2033 2,000,000 98,459 - - - -
Total 7,175,000$ 716,891$ 240,253$ 25,014$ 146,039$ 10,096$
Lease LiabilityG.O. Improvement Bonds SBITA Liability
Governmental Activities
Total delinquent special assessments receivable for all funds for the years ending December 31, 2024
and 2023, were $83,425 and $142,147, respectively.
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 8.37%.
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.
As of December 31, 2024, there were two debt issues outstanding. The aggregate original issue
amounts and principal balances outstanding as of December 31, 2024, are as follows:
Original Principal
Name of Issue Year Issue Balance
LOGIS Government Facilities Revenue Bonds 2006 $ 6,000,000 $ 904,849
Crystal Leased Housing Multi Family Housing Bonds 2014 14,300,000 12,550,000
Total $ 20,300,000 $ 13,454,849
7.1
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City of Crystal
Notes to Basic Financial Statements
NOTE 9 – PENSION PLANS
The City participates in various pension plans, total pension expense for the year ended
December 31, 2024, was $1,591,622. 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, 353D, 353E, 353G, and 356. Minnesota Statutes
Chapter 356 defines each plan's financial reporting requirements. PERA's defined benefit pension
plans are tax qualified plans under Section 401(a) of the Internal Revenue Code.
General Employees Retirement Plan
Membership in the General Plan includes employees of counties, cities, townships, schools in non-
certified positions, and other governmental entities whose revenues are derived from taxation, fees,
or assessments. Plan membership is required for any employee who is expected to earn more than
$425 in a month, unless the employee meets exclusion criteria.
Public Employees Police and Fire Plan
Membership in the Police and Fire Plan includes full-time, licensed police officers and firefighters
who meet the membership criteria defined in Minnesota Statutes § 353.64 and who are not earning
service credit in any other PERA retirement plan or a local relief association for the same service.
Employers can provide Police and Fire Plan coverage for part-time positions and certain other public
safety positions by submitting a resolution adopted by the City’s governing body. The resolution must
state that the position meets plan requirements.
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. When a member is vested, they have earned enough
service credit to receive a lifetime monthly benefit after leaving public service and reaching an
eligible retirement age. Members who retire at or over their Social Security full retirement age with
at least one year of service qualify for a retirement benefit.
7.1
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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 requires three years of service to vest. 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 General Plan members.
Members hired prior to July 1, 1989, receive the higher of Step or Level formulas. Only the Level
formula is used for members hired after June 30, 1989. Under the Step formula, General Plan
members receive 1.2% of the highest average salary for each of the first 10 years of service and 1.7%
for each additional year. Under the Level formula, General Plan members receive 1.7% of the highest
average salary for all years of service. For members hired prior to July 1, 1989, a full retirement
benefit is available when age plus years of service equal 90 and normal retirement age is 65.
Members can receive a reduced requirement benefit as early as age 55 if they have three or more
years of service. Early retirement benefits are reduced by .25% for each month under age 65.
Members with 30 or more years of service can retire at any age with a reduction of .25% for each
month the member is younger than age 62. The Level formula allows General Plan members to
receive a full retirement benefit at age 65 if they were first hired before July 1, 1989 or at age 66 if
they were hired on or after July 1, 1989. Early retirement begins at age 55 with an actuarial
reduction applied to the benefit.
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%. The 2024 annual increase was 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.
Police and Fire Plan Benefits
Benefits for the Police and Fire Plan members hired before July 1, 2010, are vested after three years
of service. Members hired on or after July 1, 2010, are 50% vested after five years of service and
100% vested after 10 years. After five years, vesting increase by 10% each full year of service until
members are 100% vested after 10 years. Police and Fire Plan members receive 3% of highest average
salary for all years of service. Police and Fire Plan members receive a full retirement benefit when
they are 55 and vested, or when their age plus their years of service equals 90 or greater if they
were first hired before July 1, 1989. Early retirement starts at age 50, and early retirement benefits
are reduced by 0.417% each month members are younger than age 55.
7.1
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City of Crystal
Notes to Basic Financial Statements
NOTE 9 – PENSION PLANS (CONTINUED)
Public Employees' Retirement Association (Continued)
B. Benefits Provided (Continued)
Police and Fire Plan Benefits (Continued)
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, 353E, 353G, and 356 set the rates for employer and employee
contributions. Contribution rates can only be modified by the state Legislature.
General Employees Fund Contributions
General Plan members were required to contribute 6.5% of their annual covered salary in fiscal year
2024 and the City was required to contribute 7.5% for General Plan members. The City's contributions
to the General Employees Fund for the year ended December 31, 2024, were $409,366. 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 2024 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, 2024, were
$672,628. 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, 2024, the City reported a liability of $2,317,370 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 $59,922.
7.1
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City of Crystal
Notes to Basic Financial Statements
NOTE 9 – PENSION PLANS (CONTINUED)
Public Employees' Retirement Association (Continued)
D. Pension Costs (Continued)
General Employees Fund Pension Costs (Continued)
The net pension liability was measured as of June 30, 2024, and the total pension liability used to
calculate the net pension liability was determined by an actuarial valuation as of that date. The
City's proportionate share of the net pension liability was based on the City's contributions received
by PERA during the measurement period for employer payroll paid dates from July 1, 2023, through
June 30, 2024, relative to the total employer contributions received from all of PERA's participating
employers. The City's proportionate share was 0.0627%, at the end of the measurement period and
0.0634% for the beginning of the period.
City's proportionate share of the net pension liability 2,317,370$
State of Minnesota's proportionate share of the net pension
liability associated with the City 59,922
Total 2,377,292$
For the year ended December 31, 2024, the City recognized pension expense of $195,684 for its
proportionate share of General Employees Plan's pension expense. Included in the amount, the City
recognized $1,606 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.
During the plan year ended June 30, 2024, the State of Minnesota contributed $170.1 million to the
General Employees Fund. The State of Minnesota is not included as a non-employer contributing
entity in the General Employees Plan pension allocation schedule for the $170.1 million in direct
state aid because this contribution was not considered to meet the definition of a special funding
situation. The City recognized $106,625 for the year ended December 31, 2024 as revenue and an
offsetting reduction of net pension liability for its proportionate share of the State of Minnesota's on-
behalf contributions to the General Employees Fund.
7.1
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City of Crystal
Notes to Basic Financial Statements
NOTE 9 – PENSION PLANS (CONTINUED)
Public Employees' Retirement Association (Continued)
D. Pension Costs (Continued)
General Employees Fund Pension Costs (Continued)
At December 31, 2024, the City reported its proportionate share of the General Employees Plan's
deferred outflows of resources and deferred inflows of resources, related to pensions from the
following sources:
Differences between expected and actual economic experience 218,740$ -$
Changes in actuarial assumptions 11,461 884,406
Net difference between projected and actual investment 693,280
earnings - 56,422
Changes in proportion - -
Contributions paid to PERA subsequent
to the measurement date 204,683 -
Total 434,884$ 1,634,108$
Deferred
Outflows of
Resources
Deferred
Inflows of
Resources
The $204,683 reported as deferred outflows of resources related to pensions resulting from City
contributions subsequent to the measurement date will be recognized as a reduction of the net
pension liability in the year ended December 31, 2025. Other amounts reported as deferred outflows
and deferred inflows of resources related to pensions will be recognized in pension expense as
follows:
Pension
Year Ending Expense
December 31,Amount
2025 (795,088)$
2026 (136,393)
2027 (294,814)
2028 (177,612)
Total (1,403,907)$
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City of Crystal
Notes to Basic Financial Statements
NOTE 9 – PENSION PLANS (CONTINUED)
Public Employees' Retirement Association (Continued)
D.Pension Costs (Continued)
Police and Fire Fund Pension Costs
At December 31, 2024, the City reported a liability of $3,520,061 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, 2023, through June 30, 2024, relative to the total employer
contributions received from all of PERA's participating employers. The City's proportionate share was
0.2676% at the end of the measurement period and 0.2571% for the beginning of the period.
The State of Minnesota contributed $37.4 million to the Police and Fire Fund in the plan fiscal year
ended June 30, 2024. The contribution consisted of $9 million in direct state aid that meets the
definition of a special funding situation, additional one-time direct state aid contribution of $19.4
million, and $9 million in supplemental state aid that does not meet the definition of a special
funding situation. Additionally, $9 million supplemental state aid was paid on October 1, 2024.
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 $134,183.
City's proportionate share of the net pension liability 3,520,061$
State of Minnesota's proportionate share of the net pension
liability associated with the City 134,183
Total 3,654,244$
For the year ended December 31, 2024, the City recognized pension expense of $1,393,976 for its
proportionate share of the Police and Fire Plan's pension expense. Included in this amount, the City
recognized $13,030 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 $28.4 million in supplemental state aid because
this contribution was not considered to meet the definition of a special funding situation. The City
also recognized $24,080 for the year ended December 31, 2024, as revenue and an offsetting
reduction of the net pension liability for its proportionate share of the State of Minnesota's on-behalf
contributions to the Police and Fire Fund.
7.1
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City of Crystal
Notes to Basic Financial Statements
NOTE 9 – PENSION PLANS (CONTINUED)
Public Employees' Retirement Association (Continued)
D. Pension Costs (Continued)
Police and Fire Fund Pension Costs (Continued)
At December 31, 2024, the City reported its proportionate share of the Police and Fire Plan's
deferred outflows of resources and deferred inflows of resources related to pensions from the
following sources:
Differences between expected and actual economic experience 1,358,367$ -$
Changes in actuarial assumptions 3,961,996 4,981,785
Net difference between projected
and actual investment earnings - 1,065,381
Changes in proportion 199,571 668,534
Contributions paid to PERA subsequent
to the measurement date 336,314 -
Total 5,856,248$ 6,715,700$
Deferred
Outflows of
Resources
Deferred
Inflows of
Resources
The $336,314 reported as deferred outflows of resources related to pensions resulting from City
contributions subsequent to the measurement date will be recognized as a reduction of the net
pension liability in the year ended December 31, 2025. Other amounts reported as deferred outflows
and inflows of resources related to pensions will be recognized in pension expense as follows:
Pension
Year Ending Expense
December 31,Amount
2025 (190,122)$
2026 871,824
2027 (547,306)
2028 (1,441,384)
2029 111,222
Total (1,195,766)$
7.1
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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 %
Asset Class Target Allocation Rate of Return
Long-Term
Expected Real
F. Actuarial Methods and Assumptions
The total pension liability in the June 30, 2024, 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 considered
reasonable by the actuary. An investment return of 7.0% is within that range.
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.
7.1
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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 General
Employees Plan was last reviewed in 2022. The assumption changes were adopted by the Board and
became effective with the July 1, 2023, actuarial valuation. The Police and Fire Plan was reviewed in
2024. PERA anticipates the experience study will be approved by the Legislative Commission on
Pensions and Retirement and become effective with the July 1, 2025 actuarial valuation.
The following changes in actuarial assumptions and plan provisions occurred in 2024:
General Employees Fund
Changes in Actuarial Assumptions
• Rates of merit and seniority were adjusted, resulting in slightly higher rates.
• Assumed rates of retirement were adjusted as follows: Increase the rate of assumed
unreduced retirements, slight adjustments to Rule of 90 retirement rates, and slight
adjustments to early retirement rates for Tier 1 and Tier 2 members.
• Minor increase in assumed withdrawals for males and females.
• Lower rates of disability.
• Continued use of Pub-2010 general mortality table with slight rate adjustments as
recommended in the most recent experience study.
• Minor changes to form of payment assumptions for male and female retirees.
• Minor changes to assumptions made with respect to missing participant data.
Changes in Plan Provisions
• The workers' compensation offset for disability benefits was eliminated. The actuarial
equivalent factors updated to reflect the changes in assumptions.
Police and Fire Fund
Changes in Plan Provisions
• The State contribution of $9.0 million per year will continue until the earlier of 1) both the
Police and Fire Plan and the State Patrol Retirement Fund attain 90% funded status for three
consecutive years (on an actuarial value of assets basis) or 2) July 1, 2048. The contribution
was previously due to expire after attaining a 90% funded status for one year.
• The additional $9.0 million contribution will continue until the Police and Fire Plan is fully
funded for a minimum of three consecutive years on an actuarial value of assets basis, or
July 1, 2048, whichever is earlier. This contribution was previously due to expire upon
attainment of fully funded status on an actuarial value of assets basis for one year (or July 1,
2048 if earlier).
7.1
80
City of Crystal
Notes to Basic Financial Statements
NOTE 9 – PENSION PLANS (CONTINUED)
Public Employees' Retirement Association (Continued)
G. Discount Rate
The discount rate used to measure the total pension liability in 2024 was 7.0%. The projection of
cash flows used to determine the discount rate assumed that contributions from Plan members and
employers will be made at rates set in Minnesota Statutes. Based on these assumptions, the fiduciary
net positions of the General Employees and Police and Fire Plans were projected to be available to
make all projected future benefit payments of current Plan members. Therefore, the long-term
expected rate of return on pension plan investments was applied to all periods of projected benefit
payments to determine the total pension liability.
H. Pension Liability Sensitivity
The following presents the City's proportionate share of the net pension liability for all plans it
participates in, calculated using the discount rate disclosed in the preceding paragraph, as well as
what the City's proportionate share of the net pension liability would be if it were calculated using a
discount rate 1 percentage point lower or 1 percentage point higher than the current discount rate:
1% Decrease in Current 1% Increase in
Discount Discount Discount
Rate (6.0%)Rate (7.0%)Rate (8.0%)
City's proportionate share of
the General Employees Fund
net pension liability 5,061,506$ 2,317,370$ 60,065$
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)8,318,588$ 3,520,061$ (420,537)$
I. Pension Plan Fiduciary Net Position
Detailed information about each pension plan's fiduciary net position is available in a separately
issued PERA financial report that includes financial statements and required supplementary
information. That report may be obtained on the Internet at www.mnpera.org.
Public Employees Defined Contribution Plan (Defined Contribution Plan)
Certain employee types of the of the City of Crystal, which include council members, are covered by
the Defined Contribution Plan, a multiple-employer deferred compensation plan administered by
PERA. The Defined Contribution Plan is a tax qualified plan under Section 401(a) of the Internal
Revenue Code and all contributions by or on behalf of employees are tax deferred until time of
withdrawal.
7.1
81
City of Crystal
Notes to Basic Financial Statements
NOTE 9 – PENSION PLANS (CONTINUED)
Public Employees Defined Contribution Plan (Defined Contribution Plan)
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 and 356, 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 2024 were:
1,962$ 1,962$ 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 2024, the City contributed $123,617
to the plan.
7.1
82
City of Crystal
Notes to Basic Financial Statements
NOTE 10 – POST EMPLOYMENT HEALTH CARE PLAN (CONTINUED)
D. Members
As of December 31, 2023, the following were covered by the benefit terms:
Total employees without coverage 11
Employees with coverage 84
Total 95
E. Actuarial Assumptions
The total OPEB liability was determined by an actuarial valuation as of December 31, 2023, using the
following actuarial assumptions, applied to all periods included in the measurement, unless
otherwise specified:
Discount Rate 3.77%
Salary increases including inflation Based on the PERA Plan in which the
employee is a participant.
Healthcare cost trend increases 7.75% for FY2024, gradually decreasing over
ten years to an ultimate rate of 4.0% in
FY2043 and later years.
Mortality assumption PERA Coordinated: Rates from the most
recent PERA experience study from
July 1, 2018 through June 30, 2022.
PERA Police and Fire: Rates from the most
recent PERA experience study from
July 1, 2019 through June 30, 2023.
Key Methods and Assumptions Used in Valuation of Total OPEB Liability
The actuarial assumptions used in the December 31, 2023, valuation were based on the results of an
actuarial experience study for the period January 1, 2023 through December 31, 2023.
Summary of Actuarial Assumptions and Methods
• 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.
• The discount rate was updated from 4.05% to 3.77% based on recent municipal bond
index rates.
• Future retiree participation rates were updated from 65% to 60% based on analysis of
past plan experience.
• Future retiree spouse participation rates were updated from 40% to 35% 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.
7.1
83
City of Crystal
Notes to Basic Financial Statements
NOTE 10 – POST EMPLOYMENT HEALTH CARE PLAN (CONTINUED)
F. Total OPEB Liability
The City's total OPEB liability of $1,976,638 was measured as of December 31, 2023, and was
determined by an actuarial valuation as of December 31, 2023.
Changes in the total OPEB liability are as follows:
Total
OPEB
Liability
Balances at January 1, 2024 1,624,501$
Changes for the year
Service cost 115,763
Interest 67,977
Differences between expected and actual
economic experience 183,932
Changes of assumptions 108,082
Benefit payments (123,617)
Net changes 352,137
Balances at December 31, 2024 1,976,638$
G. OPEB Liability Sensitivity
The following presents the City's total OPEB liability calculated using the discount rate of 3.77% 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%)(3.77%)(5.05%)
2,151,824$ 1,976,638$ 1,815,752$
Total OPEB Liability/(Asset)
7.1
84
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
(6.75% Decreasing to
3.0%)
(7.75% Decreasing to
4.0%)
(8.75% Decreasing to
5.0%)
1,755,807$ 1,976,638$ 2,236,620$
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, 2024, the City recognized OPEB expense of $77,646. At
December 31, 2024, the City reported deferred outflows of resources and deferred inflows of
resources as shown below.
Deferred Deferred
Outflows of Inflows of
Resources Resources
Differences between expected and actual economic experience 208,894$ 460,732$
Changes in actuarial assumptions 257,614 438,839
Contributions made subsequent to the
measurement date 102,957 -
Total 569,465$ 899,571$
7.1
85
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 $102,957 reported as deferred outflows of resources resulting from contributions subsequent to
the measurement date will be recognized as a reduction of the OPEB liability in the year ended
December 31, 2025. Other amounts reported as deferred outflows of resources will be recognized in
OPEB expense as follows:
OPEB
Expense
(106,094)$
(109,421)
(109,533)
(97,200)
(14,325)
3,510
Total (326,969)$
Year Ending
December 31,
2027
2028
Thereafter
2025
2026
2029
7.1
86
City of Crystal
Notes to Basic Financial Statements
NOTE 11 – FUND BALANCES
A. Classifications
A summary of governmental fund balance classifications at December 31, 2024, is as follows:
Capital
Project
Fund
General Debt Street Other
Fund Service Reconstruction Funds Total
Fund balances
Nonspendable
Inventory 24,204$ -$ -$ -$ 24,204$
Prepaid items 669 - - - 669
Total nonspendable 24,873 - - - 24,873
Restricted
Housing and Redevelopment
Assistance - - - 1,113,526 1,113,526
Debt service - 3,419,369 - - 3,419,369
Public Safety Aid - - - 396,420 396,420
DWI-related enforcement,
training, and education - - - 146,358 146,358
Total restricted - 3,419,369 - 1,656,304 5,075,673
Committed
Compensated absences 1,401,517 - - - 1,401,517
Housing and redevelopment
Assistance - - - 2,484,312 2,484,312
Capital outlay - street
reconstruction - - 9,480,188 - 9,480,188
Capital outlay
- police equipment - - - 2,843,317 2,843,317
Capital outlay
- cable TV equipment - - - 364,065 364,065
Capital outlay
- park improvement - - - 1,174,324 1,174,324
Total committed 1,401,517 - 9,480,188 6,866,018 17,747,723
Assigned
Police Department purposes - - - 119,806 119,806
Unassigned 6,489,446 - - - 6,489,446
Total fund balances 7,915,836$ 3,419,369$ 9,480,188$ 8,642,128$ 29,457,521$
Major Funds
7.1
87
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 2024. There were no significant
reductions in insurance coverage during 2024.
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 $36,000 is included in accounts payable
of the Self-Insurance Fund at December 31, 2024. 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 $75,000 if claims
are open from more than one year.
Changes in claims liability for 2024, 2023 and 2022 are as follows:
Year
Claims Liability
Beginning of Year
Current Year
Claims and
Changes in
Estimates
Payments on
Claims
Claims Liability
End of Year
2022 182,491$ (61,649)$ 1,100$ 119,742$
2023 119,742 (26,977) 11,265 81,500
2024 81,500 (8,138) 37,362 36,000
7.1
88
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,
2024, is $6,146,284.
Due to concurrent timing of the City's fiscal year end and audit of the JWC, the City reports its
equity interest in the JWC with a one-year lag. The following financial information is from the
JWC's audited financial statements for the year ended December 31, 2023:
Total assets 23,767,039$
Total liabilities and deferred inflows of resources 1,337,176
Net position
Net investment in capital assets 11,347,618
Restricted for capital improvements 8,042,408
Restricted for emergency water supply 1,700,000
Unrestricted 1,339,837
Total net position 22,429,863$
Total program expenses 9,619,123$
Total program revenues 10,595,638
Net program revenue 976,515
Total general revenues 599,241
Change in net position 1,575,756
Net position
Beginning of year 20,854,107
End of year 22,429,863$
7.1
89
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, 2024, is $1,176,917.
7.1
90
City of Crystal
Notes to Basic Financial Statements
NOTE 13 – JOINT VENTURES AND JOINTLY GOVERNED ORGANIZATIONS (CONTINUED)
A. Joint Ventures (Continued)
2. West Metro Fire-Rescue District (Continued)
Due to concurrent timing of the City's fiscal year end and audit of the District, the City reports its
equity interest in the District with a one-year lag. The following financial information is from the
District's audited financial statements for the year ended December 31, 2023:
Total assets and deferred outflows of resources 8,435,527$
Total liabilities and deferred inflows of resources 6,712,096
Net position
Net investment in capital assets 1,214,011
Restricted for donor-approved purposes 35,234
Unrestricted 474,186
Total net position 1,723,431$
Total program expenses 3,585,514$
Total program revenues 3,196,511
Net program expense (389,003)
Total general revenues 383,484
Change in net position (5,519)
Net position
Beginning of year 1,728,950
End of year 1,723,431$
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 48.58%.
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 2024 was $698,291 which was
allocated to various funds based on application usage.
7.1
91
City of Crystal
Notes to Basic Financial Statements
NOTE 13 – JOINT VENTURES AND JOINTLY GOVERNED ORGANIZATIONS (CONTINUED)
B. Jointly Governed Organizations (Continued)
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 2024 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 2024 was $69,961.
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 2024 was $13,820.
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 2024 was $549,549.
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, 2024, outstanding commitments for these multi-year projects
total approximately $1,503,171 and will be paid by the City Buildings Internal Service Fund and
utility funds.
B. Contingencies
During the course of normal operations, the City may be subject to claims or other litigation. It is the
opinion of the City's attorney that resolution of these matters, if any at December 31, 2024, will not
have a material adverse effect on the financial condition of the City.
7.1
92
City of Crystal
Notes to Basic Financial Statements
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 $900,000 towards the cost of constructing and equipping a
gymnasium. In return, the City is entitled to use the space for public recreation as well as for
programs and services for its residents. The agreement is for a term of 40 years, running from
September 1, 2005, through August 31, 2045. ISD 281 has title to the property and is responsible for
all subsequent operations and maintenance costs.
7.1
93
REQUIRED SUPPLEMENTARY INFORMATION
7.1
See notes to required supplementary information. 94
December 31,December 31,December 31,December 31,
2018 2019 2020 2021
Total OPEB Liability
Service cost 105,872$ 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
7.1
95
December 31,December 31,December 31,
2022 2023 2024
128,242$ 150,635$ 115,763$
43,252 39,558 67,977
9,194 34,990 183,932
(207,576) (312,825) 108,082
(115,716) (115,054) (123,617)
(142,604) (202,696) 352,137
1,969,801 1,827,197 1,624,501
1,827,197$ 1,624,501$ 1,976,638$
7,900,000$ 8,400,000$ 9,200,000$
23.1%19.3%21.5%
7.1
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
7.1
97
December 31,December 31,December 31,
2022 2023 2024
115,716$ 115,054$ 123,617$
115,716 115,054 123,617
-$ -$ -$
7,900,000$ 8,400,000$ 9,200,000$
1.46%1.37%1.34%
7.1
See notes to required supplementary information. 98
City's Covered-
employee
Payroll
2024 0.0627%2,317,370$ 59,922$ 2,377,292$ 5,305,253$ 43.68%89.08%
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%
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
2024 0.2676%3,520,061$ 134,183$ 3,654,244$ 3,705,028$ 95.01%90.17%
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%
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
City of Crystal
Schedule of City's Proportionate Share
of Net Pension Liability
General Employees Retirement Fund
Last Ten Years
7.1
See notes to required supplementary information. 99
2024 $ 409,366 $ 409,366 -$ 5,458,213$ 7.50%
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%
2024 $ 672,628 $ 672,628 $ - $ 3,800,158 17.70%
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%
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
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
7.1
City of Crystal
Notes to Required Supplementary Information
100 100
General Employees Fund
2024 Changes
Changes in Actuarial Assumptions
• Rates of merit and seniority were adjusted, resulting in slightly higher rates.
• Assumed rates of retirement were adjusted as follows: increase the rate of assumed
unreduced retirements, slight adjustments to Rule of 90 retirement rates, and slight
adjustments to early retirement rates for Tier 1 and Tier 2 members.
• Minor increase in assumed withdrawals for males and females.
• Lower rates of disability.
• Continued use of Pub-2010 general mortality table with slight rate adjustments as
recommended in the most recent experience study.
• Minor changes to form of payment assumptions for male and female retirees.
• Minor changes to assumptions made with respect to missing participant data.
Changes in Plan Provisions
• The workers' compensation offset for disability benefits was eliminated. The actuarial
equivalent factors updated to reflect the changes in assumptions.
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%.
7.1
City of Crystal
Notes to Required Supplementary Information
101 101
General Employees Fund (Continued)
2020 Changes (Continued)
Changes in Actuarial Assumptions (Continued)
• Assumed salary increase rates were changed as recommended in the June 30, 2019,
experience study. The net effect is assumed rates that average 0.25% less than previous
rates.
• Assumed rates of retirement were changed as recommended in the June 30, 2019, experience
study. The changes result in more unreduced (normal) retirements and slightly fewer Rule of
90 and early retirements.
• Assumed rates of termination were changes as recommended in the June 30, 2019,
experience study. The new rates are based on service and are generally lower than the
previous rates for years 2-5 and slightly higher thereafter.
• Assumed rates of disability were changed as recommended in the June 30, 2019, experience
study. The change results in fewer predicted disability retirements for males and females.
• The base mortality table for healthy annuitants and employees was changed from the RP-2014
table to the Pub-2010 General Mortality table, with adjustments. The base mortality table for
disabled annuitants was changed from the RP-2014 disabled annuitant mortality table to the
Pub-2010 General/Teacher disabled annuitant mortality table, with adjustments.
• The mortality improvement scale was changed from Scale MP-2018 to Scale MP-2019.
• The assumed spouse age difference was changed from two years older for females to one year
older.
• The assumed number of married male new retirees electing the 100% Joint and Survivor
option changed from 35% to 45%. The assumed number of married female new retires electing
the 100% Joint and Survivor option changed from 15% to 30%. The corresponding number of
married new retirees electing the Life annuity option was adjusted accordingly.
Changes in Plan Provisions
• Augmentation for current privatized members was reduced to 2.0% for the period July 1, 2020
through December 31, 2023, and 0.0% thereafter. Augmentation was eliminated for
privatizations occurring after June 30, 2020.
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.
7.1
City of Crystal
Notes to Required Supplementary Information
102 102
General Employees Fund (Continued)
2018 Changes (Continued)
Changes in Plan Provisions (Continued)
• 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. This does not apply to Rule of 90 retirees, disability
benefit recipients, or survivors.
• Actuarial equivalent factors were updated to reflect revised mortality and interest
assumptions.
2017 Changes
Changes in Actuarial Assumptions
• The CSA loads were changed from 0.8% for active members and 60% for vested and non-vested
deferred members. The revised CSA loads are now 0.0% for active member liability, 15% for
vested deferred member liability and 3% for non-vested deferred member liability.
• The assumed 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.
7.1
City of Crystal
Notes to Required Supplementary Information
103 103
General Employees Fund (Continued)
2015 Changes (Continued)
Changes in Plan Provisions
• On January 1, 2015, the Minneapolis Employees Retirement Fund was merged into the General
Employees Fund, which increased the total pension liability by $1.1 billion and increased the
fiduciary plan net position by $892 million. Upon consolidation, state and employer
contributions were revised; the State’s contribution of $6.0 million, which meets the special
funding situation definition, was due September 2015.
7.1
City of Crystal
Notes to Required Supplementary Information
104 104
Police and Fire Fund
2024 Changes
Changes in Plan Provisions
• The State contribution of $9.0 million per year will continue until the earlier of 1) both the
Police and Fire Plan and the State Patrol Retirement Fund attain 90% funded status for three
consecutive years (on an actuarial value of assets basis) or 2) July 1, 2048. The contribution
was previously due to expire after attaining a 90% funded status for one year.
• The additional $9.0 million contribution will continue until the Police and Fire Plan is fully
funded for a minimum of three consecutive years on an actuarial value of assets basis, or
July 1, 2048, whichever is earlier. This contribution was previously due to expire upon
attainment of fully funded status on an actuarial value of assets basis for one year (or July 1,
2048 if earlier).
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.
7.1
City of Crystal
Notes to Required Supplementary Information
105 105
Police and Fire Fund (Continued)
2021 Changes (Continued)
Changes in Actuarial Assumptions (Continued)
• The base mortality table for disabled annuitants was changed from the RP-2014 healthy
annuitant mortality table (with future mortality improvement according to scale MP-2019) to
the Pub-2010 Public Safety disabled annuitant mortality table (with future mortality
improvement according to scale MP-2020).
• Assumed rates of salary increase were modified as recommended in the July 14, 2020,
experience study. The overall impact is a decrease in gross salary increase rates.
• Assumed rates of retirement were changed as recommended in the July 14, 2020, experience
study. The changes resulted in slightly more unreduced retirements and fewer assumed early
retirements.
• Assumed rates of withdrawal were changed from select and ultimate rates to service-based
rates. The changes resulted in more assumed terminations.
• Assumed rates of disability were increased for ages 25-44 and decreased for ages over 49.
Overall, proposed rates resulted in more projected disabilities.
• Assumed percent married for active female members was changed from 60% to 70%. Minor
changes to form of payment assumptions were applied.
Changes in Plan Provisions
• There have been no changes since the prior valuation.
2020 Changes
Changes in Actuarial Assumptions
• The mortality projection scale was changed from MP-2018 to MP-2019.
Changes in Plan Provisions
• There have been no changes since the prior valuation.
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.
7.1
City of Crystal
Notes to Required Supplementary Information
106 106
Police and Fire Fund (Continued)
2018 Changes (Continued)
Changes in Plan Provisions (Continued)
• Deferred augmentation was changed to 0.00%, effective January 1, 2019. Augmentation that
has already accrued for deferred members will still apply.
• Actuarial equivalent factors were updated to reflect revised mortality and interest
assumptions.
2017 Changes
Changes in Actuarial Assumptions
• Assumed salary increases were changed as recommended in the June 30, 2016, experience
study. The net effect is proposed rates that average 0.34% lower than the previous rates.
• Assumed rates of retirement were changed, resulting in fewer retirements.
• The CSA load was 30% for vested and non-vested deferred members. The CSA has been
changed to 33% for vested members and 2% for non-vested members.
• The base mortality table for healthy annuitants was changed from the RP-2000 fully
generational table to the RP-2014 fully generational table (with a base year of 2006), with
male rates adjusted by a factor of 0.96. The mortality improvement scale was changed from
Scale AA to Scale MP-2016. The base mortality table for disabled annuitants was changed from
the RP-2000 disabled mortality table to the mortality tables assumed for healthy retirees.
• Assumed termination rates were decreased to 3% for the first three years of service. Rates
beyond the select period of three years were adjusted, resulting in more expected
terminations overall.
• Assumed percentage of married female members was decreased from 65% to 60%.
• Assumed age difference was changed from separate assumptions for male members (wives
assumed to be three years younger) and female members (husbands assumed to be four years
older) to the assumption that males are two years older than females.
• 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.
7.1
City of Crystal
Notes to Required Supplementary Information
107 107
Police and Fire Fund (Continued)
2015 Changes
Changes in Actuarial Assumptions
• The assumed post-retirement benefit increase rate was changed from 1.0% per year through
2030 and 2.5% per year thereafter to 1.0% per year through 2037 and 2.5% per year
thereafter.
Changes in Plan Provisions
• The post-retirement benefit increase to be paid after attainment of the 90% funding threshold
was changed, from inflation up to 2.5%, to a fixed rate of 2.5%.
7.1
City of Crystal
Notes to Required Supplementary Information
108 108
Post Employment Health Care Plan
2024 Changes
• 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.
• The discount rate was updated from 4.05% to 3.77% based on recent municipal bond index
rates.
• Future retiree participation rates were updated from 65% to 60% based on analysis of past
plan experience.
• Future retiree spouse participation rates were updated from 40% to 35% 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.
2023 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.
7.1
109
SUPPLEMENTARY INFORMATION
7.1
110
(THIS PAGE IS LEFT BLANK INTENTIONALLY)
7.1
111
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.
7.1
112
TIF Districts
Special Revenue Special Projects EDA Public Safety Aid
Assets
Cash and investments 1,155,729$ 395,547$ 2,388,526$ 396,420$
Accounts receivable - 20,000 - -
Taxes receivable - - 12,607 -
Special assessments receivable - - 85,139 -
Advances to other funds - - - -
Due from other governments - 11,219 - -
Land held for resale - - 124,000 -
Total assets 1,155,729$ 426,766$ 2,610,272$ 396,420$
Liabilities
Accounts payable 37,779$ 2,103$ 254$ -$
Contracts payable 4,424 - - -
Due to other governments - - 412 -
Salaries and benefits payable - - 11,162 -
Deposits payable - - 5,000 -
Unearned revenue - 158,499 13,192 -
Total liabilities 42,203 160,602 30,020 -
Deferred Inflows of Resources
Unavailable revenue - property taxes - - 10,801 -
Unavailable revenue - special assessments - - 85,139 -
Total deferred inflows of resources - - 95,940 -
Fund Balances
Restricted 1,113,526 146,358 - 396,420
Committed - - 2,484,312 -
Assigned - 119,806 - -
Total fund balances 1,113,526 266,164 2,484,312 396,420
Total liabilities, deferred inflow of
resouces, and fund balances 1,155,729$ 426,766$ 2,610,272$ 396,420$
City of Crystal
Combining Balance Sheet -
Nonmajor Governmental Funds
December 31, 2024
Special Revenue
7.1
113
Special Revenue
Total
Cable TV
Equipment
Park
Improvement
Police
Equipment
Revolving Total
Total
Governmental
Funds
4,336,222$ 365,378$ 1,228,307$ 1,692,118$ 3,285,803$ 7,622,025$
20,000 - - - - 20,000
12,607 - 1,625 - 1,625 14,232
85,139 - - - - 85,139
- - - 1,170,000 1,170,000 1,170,000
11,219 - - - - 11,219
124,000 - - - - 124,000
4,589,187$ 365,378$ 1,229,932$ 2,862,118$ 4,457,428$ 9,046,615$
40,136$ 1,313$ 49,611$ 18,801$ 69,725$ 109,861$
4,424 - 4,372 - 4,372 8,796
412 - - - - 412
11,162 - - - - 11,162
5,000 - - - - 5,000
171,691 - - - - 171,691
232,825 1,313 53,983 18,801 74,097 306,922
10,801 - 1,625 - 1,625 12,426
85,139 - - - - 85,139
95,940 - 1,625 - 1,625 97,565
1,656,304 - - - - 1,656,304
2,484,312 364,065 1,174,324 2,843,317 4,381,706 6,866,018
119,806 - - - - 119,806
4,260,422 364,065 1,174,324 2,843,317 4,381,706 8,642,128
4,589,187$ 365,378$ 1,229,932$ 2,862,118$ 4,457,428$ 9,046,615$
Capital Projects
7.1
114
TIF Districts
Special Revenue Special Projects EDA Public Safety Aid
Revenues
Property taxes 359,347$ -$ 331,821$ -$
Special assessments - - 32,839 -
Intergovernmental - 55,073 110,047 -
Charges for services - - 45,843 -
Interest 36,954 - 80,688 26,570
Other - 104,373 - -
Total revenues 396,301 159,446 601,238 26,570
Expenditures
Current
General government - 33,538 - -
Public safety - 72,262 - -
Recreation - 45 - -
Economic development 265,954 - 571,535 -
Debt service
Principal - - - -
Interest and other charges - - - -
Capital outlay - 2,500 - -
Total expenditures 265,954 108,345 571,535 -
Excess of revenues over
(under) expenditures 130,347 51,101 29,703 26,570
Other Financing Sources (Uses)
Lease issuance - - - -
Transfers in - 1,797 - -
Transfers out - - - (640,132)
Total other financing
sources (uses)- 1,797 - (640,132)
Net change in fund balances 130,347 52,898 29,703 (613,562)
Fund Balances
Beginning of year 983,179 213,266 2,454,609 1,009,982
End of year 1,113,526$ 266,164$ 2,484,312$ 396,420$
Special Revenue
City of Crystal
Combining Statement of Revenues, Expenditures, and Changes
in Fund Balances - Nonmajor Governmental Funds
Year Ended December 31, 2024
7.1
115
Special Revenue
Total
Cable TV
Equipment
Park
Improvement
Police
Equipment
Revolving Total
Total Other
Governmental
Funds
691,168$ -$ 882,753$ 92,211$ 974,964$ 1,666,132$
32,839 - - - - 32,839
165,120 33,675 423,756 - 457,431 622,551
45,843 - - - - 45,843
144,212 13,026 33,205 58,135 104,366 248,578
104,373 - - - - 104,373
1,183,555 46,701 1,339,714 150,346 1,536,761 2,720,316
33,538 26,117 - - 26,117 59,655
72,262 - - 6,208 6,208 78,470
45 - 815 - 815 860
837,489 - - - - 837,489
-
- - - 100,826 100,826 100,826
- - - 16,228 16,228 16,228
2,500 - 430,219 290,361 720,580 723,080 - -
945,834 26,117 431,034 413,623 870,774 1,816,608
237,721 20,584 908,680 (263,277) 665,987 903,708
- - - 129,294 129,294 129,294
1,797 - - 150,000 150,000 151,797
(640,132) - - - - (640,132)
(638,335) - - 279,294 279,294 (359,041)
(400,614) 20,584 908,680 16,017 945,281 544,667
4,661,036 343,481 265,644 2,827,300 3,436,425 8,097,461
4,260,422$ 364,065$ 1,174,324$ 2,843,317$ 4,381,706$ 8,642,128$
Capital Projects
7.1
116
Original Final Actual Amounts
Revenues
Property taxes 358,753$ 358,753$ 359,347$ 594$
Interest 5,000 5,000 36,954 31,954
Total revenues 363,753 363,753 396,301 32,548
Expenditures
Current
Community development 298,200 298,200 265,954 (32,246)
u
nNet change in fund balances 65,553$ 65,553$ 130,347 64,794$
Fund Balance
Beginning of year 983,179
End of year 1,113,526$
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, 2024
7.1
117
Original Final
Actual
Amounts
Variance with
Final Budget
Revenues
Property taxes 368,006$ 368,006$ 331,821$ (36,185)$
Special assessments - - 32,839 32,839
Intergovernmental 26,800 26,800 110,047 83,247
Charges for services - - 45,843 45,843
Investment income 8,000 8,000 80,688 72,688
Total revenues 402,806 402,806 601,238 198,432
Expenditures
Current
Community development 401,512 401,512 571,535 170,023
Net change in fund balances 1,294$ 1,294$ 29,703 28,409$
Fund Balances
Beginning of year 2,454,609
End of year 2,484,312$
Budgeted Amounts
City of Crystal
Schedule of Revenues, Expenditures, and
Changes in Fund Balances -
Budget and Actual - EDA - Special Revenue
Year Ended December 31, 2024
7.1
118
Original Final
Actual
Amounts
Variance with
Final Budget
Revenues
Property taxes 529,047$ 529,047$ 529,047$ -$
Special assessments 230,000 230,000 244,615 14,615
Intergovernmental 274,750 274,750 1,089,587 814,837
Investment income 25,000 25,000 205,787 180,787
Miscellaneous revenues - - 6,598 6,598
Total revenues 1,058,797 1,058,797 2,075,634 1,016,837
Expenditures
Public works - current 18,332 18,332 - (18,332)
Public works - capital outlay 1,682,699 1,682,699 1,132,396 (550,303)
Total expenditures 1,701,031 1,701,031 1,132,396 (568,635)
Excess of revenues over
(under) expenditures (642,234) (642,234) 943,238 1,585,472
Other Financing Uses
Transfers out - - (14,284) (14,284)
Net change in fund balances (642,234)$ (642,234)$ 928,954 1,571,188$
Fund Balance
Beginning of year 8,551,234
End of year 9,480,188$
Budgeted Amounts
City of Crystal
Schedule of Revenues, Expenditures, and
Changes in Fund Balances -
Street Reconstruction - Capital Projects
Year Ended December 31, 2024
Budget and Actual
7.1
119
Original Final Actual Amounts
Revenues
Property taxes 882,753$ 882,753$ 882,753$ -$
Intergovernmental - - 423,756 423,756
Interest 5,000 5,000 33,205 28,205
Total revenues 887,753 887,753 1,339,714 451,961
Expenditures
Current
Park and recreation - - 815 815
Capital outlay
Park and recreation 775,000 775,000 430,219 (344,781)
Total expenditures 775,000 775,000 431,034 (343,966)
Excess of revenues over
(under) expenditures 112,753 112,753 908,680 795,927
Fund Balance
Beginning of year 265,644
End of year 1,174,324$
Budgeted Amounts
Variance with
Final Budget
City of Crystal
Schedule of Revenues, Expenditures, and
Changes in Fund Balances -
Budget and Actual
Park Improvement - Capital Projects
Year Ended December 31, 2024
7.1
120
Original Final Actual Amounts
Revenues
Property taxes 92,211$ 92,211 92,211$ -$
Intergovernmental 152,880 152,880 - (152,880)
Interest 15,000 15,000 58,135 43,135
Total revenues 260,091 260,091 150,346 (109,745)
Expenditures
Current
Public safety 17,800 17,800 6,208 (11,592)
Debt service:
Principal - - 100,826 100,826
Interest and other charges - - 16,228 16,228
Capital outlay 525,988 525,988 290,361 (235,627)
Total expenditures 543,788 543,788 413,623 (130,165)
Excess of revenues over
(under) expenditures (283,697) (283,697) (263,277) 20,420
Other Financing Sources
Lease issuance - - 129,294 129,294
Transfers in - - 150,000 150,000
Total other financing
sources (uses)- - 279,294 279,294
Net change in fund balances (283,697)$ (283,697)$ 16,017 299,714$
Fund Balance
Beginning of year 2,827,300
End of year 2,843,317$
Budgeted Amounts
Variance with
Final Budget
City of Crystal
Schedule of Revenues, Expenditures, and
Changes in Fund Balances -
Budget and Actual
Police Equipment Revolving - Capital Projects
Year Ended December 31, 2024
7.1
121
Self Insurance Fleet
Information
Technology City Buildings Totals
Assets
Current assets
Cash and investments
(including cash equivilants)177,043$ 1,925,408$ -$ 189,528$ 2,291,979$
Accounts Receivable 18,555 - - - 18,555
Due from other governments - - - 1,425,147 1,425,147
Total current assets 195,598 1,925,408 - 1,614,675 3,735,681
Noncurrent assets
Capital assets
Software - 9,428 397,801 8,692 415,921
Buildings - 120,000 - 36,515,450 36,635,450
Improvements other than buildings - 170,274 258,421 1,996,707 2,425,402
Machinery and equipment - 4,392,800 447,426 246,201 5,086,427
Office equipment and furnishings - - 626,925 8,207 635,132
Vehicles - 4,643,426 - - 4,643,426
Construction In Progress - - - 2,884,265 2,884,265
Total capital assets - 9,335,928 1,730,573 41,659,522 52,726,023
Less accumulated depreciation - (5,987,778) (1,312,380) (11,088,254) (18,388,412)
Net capital assets -$ 3,348,150$ 418,193$ 30,571,268$ 34,337,611$
Liabilities
Current liabilities
Accounts payable 38,084$ 134$ 7,373$ -$ 45,591$
Contracts payable - - - 274,769 274,769
Salaries and Benefits Payable 4,669 - - - 4,669
Advances from other funds - - 534,316 1,050,000 1,584,316
SBITA Liability - - 32,338 - 32,338
Total current liabilities 42,753 134 574,027 1,324,769 1,941,683
Noncurrent Liabilities
Advances from other funds - - - 6,320,000 6,320,000
SBITA Liability - - 113,701 - 113,701
Total noncurrent liabilities - - 113,701 6,320,000 6,433,701
Total liabilities 42,753$ 134$ 687,728$ 7,644,769$ 8,375,384$
Net Position
Net investment in capital assets -$ 3,348,150$ 272,154$ 30,296,499$ 33,916,803$
Unrestricted 152,845 1,925,274 (541,689) (5,755,325) (4,218,895)
Total net position 152,845$ 5,273,424$ (269,535)$ 24,541,174$ 29,697,908$
City of Crystal
Combining Statement of Net Position - Internal Service Funds
December 31, 2024
7.1
122
Self Insurance Fleet
Information
Technology City Buildings Totals
Operating Revenues
Charges for services -$ 350,865$ 774,793$ 1,482,077$ 2,607,735$
Miscellaneous 104,821 34 - - 104,855
Total operating revenues 104,821 350,899 774,793 1,482,077 2,712,590
Operating Expenses
Personal services - - 111,871 - 111,871
Other services 170,512 2,985 747,021 456,800 1,377,318
Supplies - - - 23,066 23,066
Insurance - 27,054 - - 27,054
Depreciation - 718,386 83,949 983,643 1,785,978
Equipment - 2,950 86,595 51,643 141,188
Total operating expenses 170,512 751,375 1,029,436 1,515,152 3,466,475
Operating income (loss)(65,691) (400,476) (254,643) (33,075) (753,885)
Nonoperating Revenues (Expenses)
Investment income 5,004 69,867 261 105,331 180,463
Gain (loss) on sale of capital assets - 40,168 - 2,929 43,097
Interest Expense - - (396) - (396)
Total nonoperating revenue
(expenses)5,004 110,035 (135) 108,260 223,164
Income before capital contributions (60,687) (290,441) (254,778) 75,185 (530,721)
Capital contributions - - - 1,516,075 1,516,075
Transfers Out - - - (724,492) (724,492)
Change in net position (60,687) (290,441) (254,778) 866,768 260,862
Net position - beginning 213,532 5,563,865 (14,757) 23,674,406 29,437,046
Net position - ending 152,845$ 5,273,424$ (269,535)$ 24,541,174$ 29,697,908$
City of Crystal
Combining Statement of Revenues, Expenses, and Changes
in Net Position - Internal Service Funds
For the Year Ended December 31, 2024
7.1
123
Self
Insurance Fleet
Information
Technology
City
Buildings Totals
Cash Flows - Operating Activities
Interfund services provided and used -$ 350,899$ 774,793$ 785,641$ 1,911,333$
Payments to suppliers (214,143) (49,373) (685,316) (523,925) (1,472,757)
Payments to employees - - (111,871) - (111,871)
Miscellaneous revenue 141,234 - - - 141,234
Net cash flows -
operating activities (72,909) 301,526 (22,394) 261,716 467,939
Cash Flows - Noncapital Financing Activities
SBITA addition - - (195,143) - (195,143)
Transfer to other funds - - - (724,492) (724,492)
Net cash flows - noncapital
financing activities - - (195,143) (724,492) (919,635)
Cash Flows - Capital and Related Financing Activities
Change in advance from other funds - - 236,203 (200,000) 36,203
Interest paid on debt - - (396) - (396)
Proceeds from disposal of capital assets - 118,778 - 2,929 121,707
Grants and contributions - - - 1,516,075 1,516,075
Acquisition of capital assets - (583,921) (18,531) (3,668,152) (4,270,604)
Net cash flows -
capital and related
financing activities - (465,143) 217,276 (2,349,148) (2,597,015)
Cash Flows - Investing Activities
Interest and dividends received 5,004 69,867 261 105,331 180,463
Net change in cash and cash equivalents (67,905) (93,750) - (2,706,593) (2,868,248)
Cash and cash equivalents, January 1 244,948 2,019,158 - 2,896,121 5,160,227
Cash and cash equivalents, December 31 177,043$ 1,925,408$ -$ 189,528$ 2,291,979$
Reconciliation of Operating Income (Loss) to Net Cash
Flows - Operating Activities
Operating income (loss)(65,691)$ (400,476)$ (254,643)$ (33,075)$ (753,885)$
Adjustments to reconcile operating
income (loss) to net cash flows -
operating activities
Depreciation expense - 718,386 83,949 983,643 1,785,978
Accounts receivable 36,413 - - 208 36,621
Due from other governments - - - (696,644) (696,644)
Prepaid items - - - 8,654 8,654
Accounts payable (43,438) (16,384) 4,319 (1,070) (56,573)
Due to other governmental units - - (2,058) - (2,058)
Salaries payable (193) - - - (193)
SBITA payable - - 146,039 - 146,039
Total adjustments (7,218) 702,002 232,249 294,791 1,221,824
Net cash flows -
operating activities (72,909)$ 301,526$ (22,394)$ 261,716$ 467,939$
Noncash Capital and Related Financing Activities
SBITA asset additions -$ -$ 195,143$ -$ 195,143$
City of Crystal
Combining Statement of Cash Flows - Internal Service Funds
Year Ended December 31, 2024
7.1
124
(THIS PAGE IS LEFT BLANK INTENTIONALLY)
7.1
125
STATISTICAL SECTION
7.1
126
(THIS PAGE IS LEFT BLANK INTENTIONALLY)
7.1
127
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
7.1
128
2015 2016 2017 2018
Governmental Activities
Net investment in capital assets 39,903,269$ 40,421,924$ 40,534,551$ 41,195,367$
Restricted 18,102,105 18,580,900 20,099,040 18,671,275
Unrestricted 25,901,804 25,370,751 24,388,020 23,516,447
Total governmental activities
net position 83,907,178$ 84,373,575$ 85,021,611$ 83,383,089$
Business-Type Activities
Net investment in capital assets 19,057,632$ 19,889,415$ 22,283,455$ 21,693,069$
Unrestricted 7,484,722 8,575,762 9,572,606 10,836,119
Total business-type activities
net position 26,542,354$ 28,465,177$ 31,856,061$ 32,529,188$
Primary Government
Net investment in capital assets 58,960,901$ 60,311,339$ 62,818,006$ 62,888,436$
Restricted 18,102,105 18,580,900 20,099,040 18,671,275
Unrestricted 33,386,526 33,946,513 33,960,626 34,352,566
Total primary government
net position 110,449,532$ 112,838,752$ 116,877,672$ 115,912,277$
City of Crystal
Net Position By Component
(Accrual Basis of Accounting)
Last Ten Fiscal Years
(unaudited)
Fiscal Year
7.1
129
Table 1
2019 2020 2021 2022 2023 2024
46,233,147$ 48,365,123$ 51,326,806$ 62,949,446$ 65,341,301$ 67,077,943$
17,072,361 14,067,681 12,295,252 10,999,656 10,327,395 8,768,025
22,294,201 23,420,637 20,389,276 13,615,508 12,440,593 12,241,934
85,599,709$ 85,853,441$ 84,011,334$ 87,564,610$ 88,109,289$ 88,087,902$
19,815,262$ 21,760,477$ 22,539,961$ 25,321,967$ 26,963,668$ 27,799,219$
11,901,367 12,074,284 13,285,540 12,753,395 14,365,684 16,332,645
31,716,629$ 33,834,761$ 35,825,501$ 38,075,362$ 41,329,352$ 44,131,864$
66,048,409$ 70,125,600$ 73,866,767$ 88,271,413$ 92,304,969$ 94,877,162$
17,072,361 14,067,681 12,295,252 10,999,656 10,327,395 8,768,025
34,195,568 35,494,921 33,674,816 26,368,903 26,806,277 28,574,579
117,316,338$ 119,688,202$ 119,836,835$ 125,639,972$ 129,438,641$ 132,219,766$
Fiscal Year
7.1
130
2015 2016 2017 2018
Expenses
Governmental activities
General government 2,646,651$ 3,226,278$ 2,964,731$ 3,435,708$
Public safety 6,438,462 7,685,700 7,546,777 7,250,306
Public works 5,132,260 6,511,486 4,224,253 4,285,522
Parks and recreation 2,816,220 2,759,211 3,128,275 3,299,792
Community development 1,287,427 1,174,426 1,616,752 1,159,700
Interest on long-term debt 555,121 563,308 541,919 518,975
Total governmental activities expenses 18,876,141 21,920,409 20,022,707 19,950,003
Business-type activities
Water 4,131,931 3,047,910 2,970,228 3,105,611
Sanitary sewer 1,995,561 2,169,072 2,144,581 2,486,143
Storm drainage 883,284 903,884 809,169 759,180
Street lights 151,305 155,056 174,479 152,301
Recycling 324,393 324,496 324,853 335,310
Total business-type activities expenses 7,486,474 6,600,418 6,423,310 6,838,545
Total primary government expenses 26,362,615$ 28,520,827$ 26,446,017$ 26,788,548$
Program Revenues
Governmental activities
Charges for services
General government 228,357$ 320,899$ 279,603$ 243,710$
Public safety 412,016 411,592 380,498 346,501
Public works - - - -
Parks and recreation 483,741 515,056 513,457 541,486
Community development 761,469 767,755 796,152 1,255,396
Operating grants and contributions 634,881 728,449 659,450 699,638
Capital grants and contributions 5,533,872 7,393,250 7,473,350 2,337,789
Total governmental activities program revenues 8,054,336 10,137,001 10,102,510 5,424,520
Business-type activities
Charges for services
Water 2,962,818 3,076,263 3,138,317 3,265,849
Sanitary sewer 2,079,431 2,193,599 2,300,866 2,578,065
Storm drainage 809,067 867,598 1,058,549 1,174,131
Street lights 186,125 191,261 195,122 195,324
Recycling 334,493 334,926 340,250 340,410
Operating grants and contributions 1,669,332 1,859,532 680,740 547,760
Capital grants and contributions - - - -
Total business-type activities program revenues 8,041,266 8,523,179 7,713,844 8,101,539
Total primary government program revenues 16,095,602$ 18,660,180$ 17,816,354$ 13,526,059$
Fiscal Year
City of Crystal
Changes in Net Position
(Accrual Basis of Accounting)
Last Ten Fiscal Years
(unaudited)
7.1
131
Table 2
2019 2020 2021 2022 2023 2024
4,523,764$ 2,622,345$ 2,538,863$ 2,304,721$ 2,692,918$ 3,112,671$
7,585,509 8,533,972 8,207,219 10,325,270 10,005,401 11,753,929
4,479,566 5,675,261 4,789,185 4,650,024 4,965,665 4,875,054
3,093,691 3,126,917 4,097,820 4,615,108 5,289,456 5,124,584
1,398,666 1,552,016 1,748,467 1,481,719 1,628,317 1,696,766
462,218 340,097 307,840 255,755 229,583 202,745
21,543,414 21,850,608 21,689,394 23,632,597 24,811,340 26,765,749
3,094,824 3,362,825 3,718,004 3,817,096 3,989,117 4,221,558
2,164,837 2,317,049 2,742,022 2,668,640 2,728,239 2,895,750
1,539,162 725,016 817,652 937,050 930,995 1,047,966
151,732 194,991 180,314 205,757 208,389 195,671
334,947 344,747 344,702 380,318 465,835 549,812
7,285,502 6,944,628 7,802,694 8,008,861 8,322,575 8,910,757
28,828,916$ 28,795,236$ 29,492,088$ 31,641,458$ 33,133,915$ 35,676,506$
177,914$ 181,700$ 232,472$ 251,089$ 296,926$ 274,068$
318,706 204,252 174,439 597,493 289,308 197,324
- - -- - -
552,388 154,555 437,656 518,047 599,193 468,494
1,169,663 651,925 898,035 832,792 1,108,662 1,003,652
761,960 887,111 963,527 890,737 1,946,055 1,258,214
2,146,495 1,763,000 1,670,868 8,553,139 2,578,089 2,654,908
5,127,126 3,842,543 4,376,997 11,643,297 6,818,233 5,856,660
3,707,733 4,442,177 5,060,454 5,032,917 5,543,477 5,449,141
2,446,851 2,679,871 3,112,281 3,347,460 3,564,069 3,685,816
1,226,403 1,271,999 1,309,810 1,365,594 1,395,139 1,426,553
194,950 193,029 194,435 195,553 212,369 225,286
342,336 348,287 365,448 386,375 477,324 572,516
2,560,212 240,825 202,760 563,599 803,278 720,959
- 105,750 49,395 7,801 5,761 99,951
10,478,485 9,281,938 10,294,583 10,899,299 12,001,417 12,180,222
15,605,611$ 13,124,481$ 14,671,580$ 22,542,596$ 18,819,650$ 18,036,882$
Fiscal Year
7.1
132
2015 2016 2017 2018
Net (Expense) Revenue
Governmental activities (10,821,805)$ (11,783,408)$ (9,920,197)$ (14,525,483)$
Business-type activities 554,792 1,922,761 1,290,534 1,262,994
Total primary government net expense (10,267,013)$ (9,860,647)$ (8,629,663)$ (13,262,489)$
General Revenues and Other Changes
in Net Position
Governmental activities
Property taxes 9,670,252$ 9,955,391$ 10,469,019$ 11,193,252$
Grants and contributions not restricted
to specific programs 1,701,220 1,712,591 1,753,898 1,850,588
Unrestricted investment earnings 303,263 445,296 302,344 542,106
Other general revenue - - - -
Gain on disposition of capital assets 27,706 82,795 91,114 231,971
Transfers (1,577,880) 53,732 (2,048,142) 502,049
Total governmental activities 10,124,561 12,249,805 10,568,233 14,319,966
Business-type activities
Unrestricted investment earnings 53,517 47,353 42,244 98,002
Gain on disposition of capital assets 12,500 6,441 9,964 -
Transfers 1,577,880 (53,732) 2,048,142 (502,049)
Total business-type activities 1,643,897 62 2,100,350 (404,047)
Total primary government 11,768,458$ 12,249,867$ 12,668,583$ 13,915,919$
Change in Net Position
Governmental activities (697,244)$ 466,397$ 648,036$ (205,517)$
Business-type activities 2,198,689 1,922,823 3,390,884 858,947
Total primary government 1,501,445$ 2,389,220$ 4,038,920$ 653,430$
Fiscal Year
City of Crystal
Changes in Net Position
(Accrual Basis of Accounting)
Last Ten Fiscal Years
(unaudited)
7.1
133
Table 2 (Continued)
2019 2020 2021 2022 2023 2024
(16,416,288)$ (18,008,065)$ (17,312,397)$ (11,989,300)$ (17,993,107)$ (20,909,089)$
3,192,983 2,337,310 2,491,889 2,890,438 3,678,842 3,269,465
(13,223,305)$ (15,670,755)$ (14,820,508)$ (9,098,862)$ (14,314,265)$ (17,639,624)$
11,619,642$ 12,699,857$ 13,437,858$ 14,175,783$ 15,387,668$ 16,812,947$
2,038,452 3,751,256 1,624,369 1,356,242 1,343,863 2,305,152
969,103 1,217,350 (163,476) (605,649) 1,134,272 856,180
- - - - - 143,463
146,270 119,077 92,038 110,986 687 48,775
4,154,441 474,257 479,501 505,214 671,296 721,185
18,927,908 18,261,797 15,470,290 15,542,576 18,537,786 20,887,702
148,899 255,079 (21,648) (135,363) 246,444 254,232
- - -
(4,154,441) (474,257) (479,501) (505,214) (671,296) (721,185)
(4,005,542) (219,178) (501,149) (640,577) (424,852) (466,953)
14,922,366$ 18,042,619$ 14,969,141$ 14,901,999$ 18,112,934$ 20,420,749$
2,511,620$ 253,732$ (1,842,107)$ 3,553,276$ 544,679$ (21,387)$
(812,559) 2,118,132 1,990,740 2,249,861 3,253,990 2,802,512
1,699,061$ 2,371,864$ 148,633$ 5,803,137$ 3,798,669$ 2,781,125$
Fiscal Year
7.1
134
2015 2016 2017 2018
General Fund
Nonspendable
Inventory 27,488$ 15,519$ 19,169$ 23,941$
Prepaid items - - - -
Committed
Compensated absences 782,627 817,760 753,962 774,914
Unassigned 6,382,810 6,220,496 6,119,325 6,181,591
Total general fund 7,192,925$ 7,053,775$ 6,892,456$ 6,980,446$
All Other Governmental Funds
Restricted
Housing and redevelopment assistance 1,703,927$ 1,783,870$ 1,768,695$ 1,327,159$
Debt service 6,437,512 5,750,342 5,312,296 6,079,365
Public Safety - - - -
DWI-related enforcement, training
and education 40,626 32,375 27,824 58,991
Committed
Housing and redevelopment assistance 4,247,836 4,215,316 3,846,024 3,931,334
Capital outlay - city wide 8,498,360 8,357,889 8,211,949 399,581
Capital outlay - replace and
renovation of city bldgs.- 105,509 644,615 3,338,128
Capital outlay - street reconstruction 2,074,645 2,132,454 2,718,992 5,672,092
Capital outlay - police equipment 3,126,443 3,108,331 2,870,691 2,812,125
Capital outlay - cable TV equipment 35,487 72,531 111,450 152,917
Capital outlay - fire equipment 648,635 585,905 212,683 1,932,904
Capital outlay - street maintenance 1,420,778 1,590,262 1,696,974 -
Capital outlay - fleet - - - 2,790,279
Capital outlay - information technology - - - 466,596
Capital outlay - park improvement - - - -
Assigned
Police department purposes 22,453 40,631 40,631 40,631
Park and recreation department purposes 23,684 20,729 20,729 20,729
Other purposes 9,042 7,755 12,564 12,564
Unassigned (626,968) - - -
Total all other governmental funds 27,662,460$ 27,803,899$ 27,496,117$ 29,035,395$
Note: The City implemented GASB Statement No. 54 in 2011.
Fiscal Year
City of Crystal
Fund Balances of Governmental Funds
(Modified Accrual Basis of Accounting)
Last Ten Fiscal Years
(unaudited)
7.1
135
Table 3
2019 2020 2021 2022 2023 2024
71,541$ 9,012$ 33,274$ 35,338$ 25,942$ 24,204$
- 17,386 13,178 - 19,167 669
801,503 926,030 957,521 917,956 924,404 1,401,517
6,123,392 7,405,222 6,765,565 5,558,799 5,160,502 6,489,446
6,996,436$ 8,357,650$ 7,769,538$ 6,512,093$ 6,130,015$ 7,915,836$
1,180,909$ 1,038,382$ 797,070$ 885,615$ 983,179$ 1,113,526$
6,080,972 4,506,534 4,338,861 4,051,763 3,667,082 3,419,369
- - - - 1,009,982 396,420
86,870 73,496 132,231 88,055 110,581 146,358
2,443,836 2,438,443 2,310,250 2,232,803 2,454,609 2,484,312
- - - - - -
4,155,413 - - - - -
6,778,918 6,803,180 6,692,180 6,623,565 8,551,234 9,480,188
2,915,448 2,766,889 2,820,165 2,753,628 2,827,300 2,843,317
195,363 238,385 271,449 299,790 343,481 364,065
- - - - - -
- - - - - -
2,850,100 - - - - -
564,839 - - - - -
1,405,831 1,373,663 1,240,397 1,359,410 265,644 1,174,324
71,427 74,614 57,434 99,634 102,685 119,806
- - - - - -
- - - - - -
- - - - - -
28,729,926$ 19,313,586$ 18,660,037$ 18,394,263$ 20,315,777$ 21,541,685$
Fiscal Year
7.1
136
2015 2016 2017 2018
Revenues
Property taxes 9,664,690$ 9,966,978$ 10,569,176$ 11,231,206$
Special assessments 3,328,989 3,950,081 4,468,266 3,452,454
Licenses, permits and inspections 808,695 773,479 785,451 740,192
Intergovernmental 3,175,821 3,062,273 3,133,642 3,641,377
Charges for sales and/or services 932,081 913,329 859,087 935,558
Fines and forfeitures 355,566 322,009 359,917 251,732
Interest 291,400 245,865 259,657 511,542
Net increase (decrease) in fair value of investments 4,825 59,015 - -
Miscellaneous 409,295 1,046,909 354,302 595,766
Total revenues 18,971,362 20,339,938 20,789,498 21,359,827
Expenditures
General government 2,289,245 2,517,924 2,639,028 2,580,042
Public safety 5,841,029 6,143,480 6,589,235 7,028,892
Public works 1,327,418 2,077,476 1,455,074 1,391,736
Parks and recreation 2,229,890 2,240,202 2,379,532 2,546,771
Community development 1,197,652 1,108,920 1,279,318 1,548,967
Capital outlay 14,022,519 7,124,563 9,829,622 3,255,645
Debt service -
Principal 1,379,264 2,481,027 1,968,341 1,587,269
Interest and other fees 536,202 591,516 551,467 548,573
Total expenditures 28,823,219 24,285,108 26,691,617 20,487,895
Excess (Deficiency) of Revenues
Over (Under) Expenditures (9,851,857) (3,945,170) (5,902,119) 871,932
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 33,224 122,359 91,114 253,287
Lease Issuance
Transfers in 931,436 673,132 1,944,997 10,580,478
Transfers out (551,084) (286,146) (1,541,936) (10,078,429)
Total other financing sources (uses)3,056,353 3,939,009 5,433,018 755,336
Net Change in Fund Balances (6,795,504)$ (6,161)$ (469,101)$ 1,627,268$
Debt service as a percentage of
noncapital expenditures 13%18%15%12%
Fiscal Year
City of Crystal
Changes in Fund Balances of Governmental Funds
(Modified Accrual Basis of Accounting)
Last Ten Fiscal Years
(unaudited)
7.1
137
Table 4
2019 2020 2021 2022 2023 2024
11,600,365$ 12,660,825$ 13,457,410$ 14,159,906$ 15,344,115$ 16,857,821$
2,746,810 2,460,519 2,321,804 1,908,984 1,662,632 1,374,821
835,712 676,382 874,706 850,953 999,910 999,807
3,964,052 4,903,347 2,881,597 2,644,515 4,574,688 4,831,971
886,368 332,551 709,189 854,019 1,008,224 752,710
296,200 196,239 169,270 188,836 216,028 179,607
949,195 930,168 (131,068) (562,807) 867,738 689,126
- - - - - -
406,221 107,560 357,923 175,903 144,942 132,664
21,684,923 22,267,591 20,640,831 20,220,309 24,818,277 25,818,527
2,479,514 2,246,838 2,251,477 2,484,535 2,353,255 2,557,060
7,412,980 8,324,408 8,509,527 9,101,585 9,387,685 10,596,897
1,411,680 1,549,456 1,761,363 1,873,638 1,948,482 2,022,110
2,792,663 2,913,882 3,512,059 3,872,309 4,202,238 4,105,926
1,112,371 1,303,613 1,542,587 1,399,679 1,526,431 1,738,431
4,651,350 3,139,828 2,812,386 2,129,087 2,895,070 1,855,476
1,915,357 3,350,275 1,652,500 1,413,605 1,432,238 1,265,826
508,618 425,562 353,532 309,570 284,258 245,721
22,284,533 23,253,862 22,395,431 22,584,008 24,029,657 24,387,447
(599,610) (986,271) (1,754,600) (2,363,699) 788,620 1,431,080
- - - - - -
- - - - - -
146,270 27,240 33,438 27,249 29,494 5,678
308,017 70,790 129,294
2,015,785 474,257 520,329 505,214 671,433 2,101,890
(1,556,924)- (40,828) - (20,901) (656,213)
605,131 501,497 512,939 840,480 750,816 1,580,649
5,521$ (484,774)$ (1,241,661)$ (1,523,219)$ 1,539,436$ 3,011,729$
14%19%10%8%8%7%
Fiscal Year
7.1
Source: Hennepin County report Market Value and Tax Capacity Growth by City. 138
Table 5
Total
Real Property Total Direct Estimated
Fiscal Commercial Personal Taxable Tax Actual
Year Residential Apartments Industrial Property Market Value Rate Market Value
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
2024 2,163,355,058 220,450,200 270,285,300 15,903,700 2,669,994,258 49.415 2,814,544,600 94.86
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
7.1
Source: Hennepin County. 139
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
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
48.425 0.990 0.000 49.415 24.209 34.681 7.631 115.936 0.000 0.221 116.157
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.
2024
Fiscal
City Direct Tax Rates
City of Crystal
2023
2022
2021
2020
2019
2018
2017
2016
2015
Year
7.1
Source: Hennepin County. 140
Table 7
Tax Tax
Type of Property Capacity * Rank Capacity * Rank
MN-CRYSTAL CENTER-HA LLC Shopping Center 508,250.00$ 1 1.65 %
CNTRL CRYSTAL VILL LLC ETAL Apartments 375,688 2 1.22
CEDARWOOD INVESTORS LLC Apartments 296,413 3 0.96
GERALD D SMITH Apartments 256,713 4 0.83
MINNESOTA SENIOR LIVING LLC Apartments 207,175 5 0.67
CRYSTAL GALLERY LLC Shopping Center 178,050 6 0.58 139,350$ 8 1.01 %
TARGET CORPORATION Department Store 175,150 7 0.57 188,250 3 1.36
BREIT HENN IND OWNER LLC Industrial 175,050 8 0.57
CRYSTAL MEDICAL BUILDING LLC Office/Clinic 168,050 9 0.74 178,910 4 1.29
SUPERVALU INC Grocery Store 155,330 10 0.74 161,250 6 1.17
SMITH-STURM INV WINNETKA VLG Apartments 142,750 7 1.03
CRYSTAL SHOPPING CTR ASSOC Shopping Center 293,250 1 2.12
CRYSTAL VILLAGE APARMT LLC Apartments 172,513 5 1.25
LANEL FINANCIAL GROUP Apartments 248,700 4 1.80
BASS LK RD RETAIL ASSOC LLP Office/Warehouse 115,960 9 0.84
INDUSTRIAL EQUITIES GRP LLC Apartments 95,250 10 0.69
2,495,869$ 8.09 %1,736,183$ 12.55 %
Total City of Crystal Tax Capacity 30,835,307$ 13,836,240$
* 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.
Capacity
2024 2015
City of Crystal
Principal Property Taxpayers
Current Year and Nine Years Ago
(unaudited)
Percentage
of Total Tax
Capacity
Percentage
of Total Tax
Taxpayer
7.1
Source: City of Crystal Finance Department records. 141
Table 8
Delinquent
Total Tax Collections in
Fiscal Levy for Subsequent
Year Fiscal Year Amount Years Amount
2015 9,288,837$ 9,217,089$ 99.23 65,983$ 9,283,072$ 99.94 %
2016 9,954,054 9,871,608 99.17 79,990 9,951,598 99.98
2017 10,606,338 10,538,868 99.36 59,692 10,598,560 99.93
2018 11,172,069 10,826,872 99.30 31,735 10,858,607 97.19
2019 11,343,132 11,272,127 99.37 44,642 11,316,769 99.77
2020 12,367,416 12,257,756 99.11 63,971 12,321,727 99.63
2021 13,137,587 13,032,829 99.22 33,201 13,066,030 99.46
2022 13,829,480 13,723,863 99.24 16,825 13,740,688 99.36
2023 15,142,880 14,995,759 99.03 32,183 15,027,942 99.24
2024 16,657,902 16,434,605 98.66 - 16,434,605 98.66
City of Crystal
Property Tax Levies and Collections
Last Ten Fiscal Years
(unaudited)
Collected within the
Fiscal Year of the Levy
Percentage
of Levy
Total Collections to Date
Percentage
of Levy
7.1
Source: City of Crystal Finance Department records. 142
2015 2016 2017 2018
Estimated market value - amounts 1,484,886$ 1,620,984$ 1,782,802$ 1,919,022$
expressed in thousands
Debt limit (3% of estimated market value)44,547,000$ 48,630,000$ 53,484,000$ 57,571,000$
Less debt applicable to debt limit
Total bonded debt 15,099,795 15,900,940 19,068,514 17,700,339
Deductions -
Tax increment bonds - - - -
Special assessment bonds 14,083,544 15,050,000 18,600,000 17,260,000
Total Deductions 14,083,544 15,050,000 18,600,000 17,260,000
Total debt applicable to debt limit 1,016,251 850,940 468,514 440,339
Legal debt margin 43,530,749$ 47,779,060$ 53,015,486$ 57,130,661$
Total debt applicable to the debt limit
as a percentage of the debt limit 2.3%1.7%0.9%0.8%
(unaudited)
Fiscal Year
City of Crystal
Legal Debt Margin Information
Last Ten Fiscal Years
7.1
143
Table 9
2019 2020 2021 2022 2023 2024
2,123,000$ 2,213,905$ 2,402,167$ 2,708,020$ 2,852,749$ 2,814,545$
63,690,000$ 66,417,000$ 72,065,000$ 81,241,000$ 85,582,000$ 84,436,000$
15,970,984 12,882,262 11,409,757 10,000,107 8,609,793 7,404,479
- - - - - -
15,560,000 12,470,000 11,060,000 9,690,000 8,340,000 7,175,000
15,560,000 12,470,000 11,060,000 9,690,000 8,340,000 7,175,000
410,984 412,262 349,757 310,107 269,793 229,479
63,279,016$ 66,004,738$ 71,715,243$ 80,930,893$ 85,312,207$ 84,206,521$
0.6%0.6%0.5%0.4%0.3%0.3%
Fiscal Year
7.1
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. 144
City of Crystal
Last Ten Fiscal Years
(unaudited)
Table 10
G.O.
Special Total
G.O.Assessment Lease SBITA Primary Per
Bonds Bonds Liability Liability Government Capita
1,016,251$ 14,083,544$ -$ -$ 15,099,795$ 1.02 1.05 661$
850,940 15,281,867 - - 16,132,807 1.00 1.08 706
- 19,068,514 - - 19,068,514 1.07 1.24 832
- 17,700,339 - - 17,700,339 0.92 1.09 760
- 15,970,984 - - 15,970,984 0.75 0.92 649
- 12,852,362 - - 12,852,362 0.58 0.68 553
- 11,409,757 - - 11,409,757 0.47 0.64 494
- 10,000,107 - - 10,000,107 0.37 0.55 439
- 8,609,793 - - 8,609,793 0.30 0.42 370
- 7,404,479 240,253 146,039 7,790,771 0.28 0.35 335
Personal
Income
Fiscal
Year
Percentage
of Estimated
Market
Value
Ratios of Outstanding Debt by Type
Governmental
Activities
2023
2022
2021
2020
2019
2018
2017
2016
2015
Percentage
of
2024
7.1
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. 145
Table 11
Less
Amount
Restricted
G.O.for Debt Per
Bonds Service Total Capita
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
- - - 0.00 0.00
Note: Details regarding the city's outstanding debt can be found in the notes to the financial statements.
2022
2023
Percentage
of Taxable
Market
Value of
Property
2024
Ratios of General Bonded Debt Outstanding
City of Crystal
Last Ten Fiscal Years
(unaudited)
Fiscal
Year
2015
2016
2017
2018
2019
2020
2021
7.1
Sources: City of Crystal Finance Department records and Hennepin County. 146
City of Crystal
Direct and Overlapping Governmental Activities Debt
As of December 31, 2024
(unaudited)
Table 12
Net General
Obligation Amount
Bonded Debt Applicable To
Outstanding Government
Direct -
City of Crystal 240,253$ 100.00 %240,253$
Overlapping -
Robbinsdale ISD #281 188,449,998 19.18 36,144,710
Hennepin County 1,192,537,479 1.06 12,640,897
Hennepin Suburban Park District 48,916,041 1.43 699,499
Hennepin Regional RR Authority 76,774,733 1.06 813,812
Metropolitan Council / Transit 40,609,929 0.48 194,928
Total overlapping debt 1,547,288,180 50,493,846
Total 1,547,528,433$ 50,734,099$
*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.
Percentage
Government *
Applicable To
Jurisdiction
7.1
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 and 2011. 147
Table 13
Per Capita Total City District-Wide
Personal Personal School
Population Income Income Enrollment
22,852 65,231$ 1,490,658,812$ 12,690 3.8
22,855 67,427 1,541,044,085 12,630 3.5
22,929 71,067 1,629,495,243 12,011 3.1
23,287 74,698 1,739,492,326 11,957 2.7
24,591 76,552 1,882,490,232 12,553 3.2
23,262 76,552 1,780,752,624 12,397 7.3
23,083 87,334 2,015,930,722 11,692 4.0
22,791 91,394 2,082,960,654 11,362 2.5
23,263 95,574 2,223,337,962 10,735 2.7
23,092 95,574 2,206,994,808 10,810 3.1
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.
https://public.education.mn.gov/MDEAnalytics/DataTopic.jsp?TOPICID=2
Unemployment rate - Minnesota Department of Employment and Economic Development. Rates are an
adjusted yearly average.
City of Crystal
Demographic and Economic Statistics
Last Ten Fiscal Years
(unaudited)
Fiscal
Year
2015
2016
2017
2018
2019
2020
2021
2022
2023
Unemployment
Rate
2024
https://apps.deed.state.mn.us/lmi/laus/Results.aspx?geog=2705053070&adjusted=0&periodtype=03&resultset=3&s
tartyear=2014&endyear=2023
7.1
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 and 2011. 148
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
Total 984 24.66 % 1,085 26.03 %
Estimated total employment 3,991 4,166
2024 2015
City of Crystal
Prinicpal Employers
Current Year and Nine Years Ago
(unaudited)
Percentage
of Total
City
EmploymentEmployer
Percentage
of Total
City
Employment
7.1
Source: City of Crystal Finance Department records. 149
Table 15
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
General Government 11 11 9 9 11 11 11 11 12 12
Public Safety
Police
Officers 30 30 33 33 34 34 34 35 34 37
Civilians 4 4 5 5 8 8 9 6 4 5
Public Works
Engineering 3 3 3 3 3 3 3 4 2 3
Maintenance 8 8 8 8 11 11 11 8 8 8
Parks and Recreation
Park maintenance 6 6 6 6 7 7 7 7 7 7
Recreation 5 6 5 5 8 8 7 6 10 10
Community Development 7 6 7 7 7 7 6 6 7 7
Utilities
Water/Sanitary Sewer/Storm Drainage 9 10 10 10 9 9 10 9 9 9
Total 83 84 86 86 98 98 98 92 93 98
Function
City of Crystal
Full-Time City Government Employees By Function
Last Ten Fiscal Years
(unaudited)
7.1
Source: Various City Departments. 150
2015 2016 2017 2018 2019 2020
General Government
Administration
Employee recruitments 26 17 20 15 23 9
Licenses issued 1,294 1,323 954 840 850 807
Public Safety
Police
Calls for service 31,077 30,860 27,296 32,863 30,216 26,568
Citations issued 5,798 5,771 4,710 4,465 2,588 2,940
Criminal cases investigated 1,208 1,372 1,362 1,525 217 217
Total arrests 859 926 826 906 756 711
Animal control incidents 457 509 391 303 245 295
Dog licenses issued 298 278 223 195 2 0
Fire (West Metro Fire-Rescue District)
Calls for service 1,514 1,573 1,922 1,856 840 781
Inspections, plan reviews and
consultations 824 746 880 691 428 675
Public Works
Miles of streets sealcoated **0 0 0 0
Miles of streets reconstructed 5 5 5 0 0 0
Phase of 16-phase street project Phase 14 Phase 15 Phase 16
Parks and Recreation
Recreation program participants 12,149 11,082 11,623 13,615 19,277 2,465
No. of teams in team sports 216 249 228 246 232 162
No. of participants in special events 4,542 5,382 4,690 6,292 5,039 400
No. of rental groups 201 **********
No. of facility rentals **711 1,022 970 755 296
Community Center permits 671 862 957 776 884 677
Pool attendance (closed 2020 and 2024)28,092 26,769 27,098 30,350 26,631 0
Community Development
Permits issued 2,771 2,430 2,835 2,704 3,262 3,034
Code enforcement incidents 1,539 1,514 1,405 1,317 1,583 1,294
Rental housing - no. of licensed units 2,548 2,915 2,831 2,715 2,702 2,736
Point of sale inspections/re-inspections 404 13 13 *********
Planning Commission applications 6 12 11 13 8 6
Utilities
Water system
Average residential consumption
(million gallons / day)1.22 Mg/d 1.20 Mg/d 1.60 Mg/d 1.40 Mg/d 1.40 Mg/d 1.21 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.
Function
City of Crystal
Operating Indicators By Function
Last Ten Fiscal Years
(unaudited)
Fiscal Year
7.1
151
Table 16
2021 2022 2023 2024
13 20 10 30
802 821 766 880
32,338 37,203 37,214 38,317
2,982 1,667 2,377 3,260
2,897 2,995 3,069 810
475 1,005 691 716
290 318 580 263
0000
890 959 896 987
1,260 1,327 1,074 1,344
0400
00.380.400.60
15,884 17,987 19,123 16,028
177 192 220 236
8,747 5,380 13,768 13,565
** ** ** **
885 623 600 566
792 1,131 1,091 1,310
14,870 14,261 15,270 0
3,683 3,573 3,642 3,825
1,288 1,277 1,728 1,798
2,725 2,713 2,701 2,871
*** *** *** ***
71087
1.21 Mg/d 1.21 Mg/d 2.45 Mg/d 1.31 Mg/d
Fiscal Year
7.1
Source: Various City Departments. 152
2015 2016 2017 2018 2019
Public Safety
Police
Number of stations 1 1 1 1 1
Public Works
Street maintenance
Miles of city street 91 90 90 90 88
Parks and Recreation
Recreation
Number of park acres 253 263 263 261 261
Number of parks 28 27 27 26 26
Number of parks with playground apparatus 20 19 19 19 19
Number of tennis courts 12 7 7 7 7
Number of outdoor pickleball courts 0 0 0 0 0
Hockey 4 4 3 3 3
General use 3 3 2 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 5 5
Non-reservable (neighborhood park backstop)10 7 7 7 7
Number of full-size soccer fields 2 2 2 2 1
Number of skateboard parks 1 1 1 1 1
Community Center
Number of centers 1 1 1 1 1
Number of Indoor pickleball courts
Waterslide / swimming pool
Number of facilities 1 1 1 1 1
Utilities
Water system
Miles of water main (owned by city)90 90 93 93 93
Number of service connections 7,830 7,841 7,841 7,849 7,856
Number of fire hydrants 823 823 797 797 859
Sewer system
Miles of sanitary sewer 87 87 87 87 87
Number of service connections 7,845 7,855 7,855 7,863 7,863
Number of lift stations 7 7 7 7 7
Storm drainage system
Miles of storm sewer 76 77 65 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.
Last Ten Fiscal Years
(unaudited)
Function
Fiscal Year
City of Crystal
Capital Asset Statistics By Function
7.1
153
Table 17
2020 2021 2022 2023 2024
1 1 1 1 1
91 91 91 91 91
261 261 261 261 261
26 26 26 26 26
19 19 19 19 19
6 6 6 3 3
0 6 6 14 8
4 4 4 4 4
4 2 2 2 3
2 2 2 2 2
3 3 3 3 3
5 5 5 5 4
4 0 0 0 0
1 1 1 1 1
1 1 1 1 1
1 1 1 1 1
6 6 6 6
1 1 1 1 1
93 93 93 64 88
8,010 8,010 8,010 8,270 8,274
798 798 798 779 781
87 87 87 87 87
8,129 8,129 8,129 8,895 8,896
7 7 7 7 7
66 66 66 64 64
1 1 1 1 1
Fiscal Year
7.1
City of Crystal
Hennepin County, Minnesota
Reports on Compliance with
Government Auditing Standards
and Legal Compliance
December 31, 2024
7.1
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
7.1
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, Government Auditing Standards
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, 2024, and the related notes to financial statements, which collectively
comprise the City's basic financial statements, and have issued our report thereon dated June 6,
2025.
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 2024-001.
7.1
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
June 6, 2025
7.1
3
City of Crystal
Schedule of Findings and Questioned Costs
FINANCIAL STATEMENT FINDINGS
Audit Finding 2024-001
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:
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.
7.1
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, 2024, and the related notes to financial statements, which
collectively comprise the City's basic financial statements, and have issued our report thereon dated
June 6, 2025.
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
June 6, 2025
7.1
COUNCIL STAFF REPORT
DATE: June 9, 2025
TO: Mayor and City Council
FROM: City Manager Adam R. Bell
Chief of Police Stephanie Revering
RE: Consider approval of the first reading of an ordinance amending the overnight parking
regulations
Background
Over the course of two work sessions, the council discussed making changes to the overnight
parking restrictions and related temporary parking permits. Currently, there is no parking on city
streets from 2:00 a.m. to 5:00 a.m. except with a temporary permit, which can only be issued by
the police from April 1 through November 30. Following the discussions, staff has drafted
proposed ordinance language to amend the code based on the Council’s direction.
The proposed ordinance language is attached. The proposed language includes the following:
•Clarification of long-term and short-term permits.
o A long-term permit would allow overnight parking from April 1 through November 30.
o A short-term permit would allow overnight parking year-round for two weeks at a
time. A maximum of four short-term permits would be issued per year per vehicle.
•Fees. *These are referenced in the ordinance as Appendix IV, but the amounts are not
included in the text.
o All long-term permits would now have to be purchased. The proposed fee is $40.
o The first two short-term permits are free. Additional permits would cost $20 each.
•Miscellaneous terms
o All permits shall continue to be issued at the discretion of the Police Chief.
o All permits are subject to suspension or revocation
o All permits are subject to snow removal suspension
o All parking is limited to a maximum of 24 consecutive hours
If the first reading is approved, the second reading and adoption of the ordinance and fee
amendments will be considered at the July 15 meeting.
Requested City Council Action
Recommend approval of the first reading of the proposed ordinance amendments.
Attachment
Ordinance 2025-XX, AN ORDINANCE TO AMEND CHAPTER XIII TRAFFIC, MOTOR VEHICLES AND
OTHER VEHICLES, SECTION 1310 PARKING REGULATIONS
7.2
1
CITY OF CRYSTAL
ORDINANCE #-2025____
AN ORDINANCE TO AMEND CHAPTER XIII TRAFFIC, MOTOR VEHICLES AND
OTHER VEHICLES, SECTION 1310 PARKING REGULATIONS
The City of Crystal ordains:
ARTICLE I. Chapter XIII, Section 1310 of the of the Crystal city code is hereby amended by
deleting the stricken material, adding the double underlined material, and renumbering the
subdivisions as may be needed as follows:
Section 1310. Parking Regulations
1310. 01. General rules.
Subd. 1. Parallel to curb. Vehicles must be parked or stopped parallel with the edge of the
roadway, headed in the direction of traffic, with the curb-side wheels of the vehicle within 12
inches of the edge of the roadway, and not closer than four feet to another vehicle parked at the
curb.
Subd. 2. Where no curb. On streets and highways not having a curb, a vehicle stopped or
parked must be stopped or parked parallel with and to the right of the paved or improved or main
travelled part of the street or highway.
Subd. 3. One-way roadway. On a one-way roadway, a vehicle must be parked with the
front of the vehicle facing in the same direction on the one-way street as the traffic thereof is
permitted to pass.
Subd. 4. Angle parking. On those streets that have been marked or signed for angle
parking, vehicles must be parked at the angle to the curb indicated by the marks or signs. Angle
parking is prohibited in any area of the city where such markings are not present.
1310.03. Parking prohibited. The parking and related prohibitions contained in Minnesota
Statutes, section 169.34 are adopted by reference and are incorporated herein.
1310.05. Other parking restrictions.
Subd. 1. Cars for sale. It is unlawful to park a vehicle on or abutting a street or highway
for the purpose of displaying the vehicle for sale or exchange. A vehicle is deemed to be in
violation of this section when it is found parked upon or abutting a street or highway and bearing
a sign indicating that it is for sale or exchange.
Subd. 2. Disabled vehicles. The provisions of this section relating to stopping, standing
and parking do not apply to the driver of a vehicle that is disabled for a reasonable time, not
exceeding 24 hours, while on the paved or improved or main traveled portion of a street or highway
in such manner and to such extent that it is impossible to avoid stopping and temporarily leaving
the disabled vehicle in such position.
7.2
2
Subd. 3. City parks. It is unlawful to park a vehicle in a city park other than in a designated
parking area.
Subd. 4. Parking restrictions; snow events. After a snow event producing at least 1-1/2
inches of snow on any city street, parking is automatically prohibited on all public streets and
alleys until the snow has stopped accumulating and the street or alley has been plowed with the
snow removed to curb to curb.
Subd. 5. City parking lot. It is unlawful to park a truck-tractor or semitrailer in a city
parking lot. Vehicles, including those with trailers, shall be parked within the designated parking
lines and shall not be parked in a way that blocks parking by other vehicles.
1310.07. Parking times.
Subd. 1. General rule. No vehicle may be parked upon a public street, alley, or within a
city-owned parking lot between the hours of 2:00 a.m. and 5:00 a.m. on any day. This prohibition
shall not apply to government-owned vehicles.
Subd. 2. Truck parking. No truck may be parked upon any public street, alley, or other
public way for a continuous period of more than two hours unless such vehicle is actively engaged
in loading or unloading activities carried out in the normal course of business. For purposes of
this subdivision, a “truck” shall be any vehicle having a capacity of 1½ tons or more, or any tractor-
trailer combination.
Subd. 3. Parking; temporary permits.
(a) General provisions.
(1) During the period from April 1 to November 30, and on legal holidays and the days
preceding and following legal holidays, the police chief is authorized to issue
temporary permits for the parking of a vehicle on a street between the hours of 2:00
a.m. to 5:00 a.m. when in the police chief’s judgment special circumstances exist
justifying the issuance of the temporary permit and the purposes of this subsection will
not be impaired thereby. For purposes of this subdivision, the term “legal holiday”
means: New Year’s Day; Martin Luther King Day; Presidents’ Day; Memorial Day;
Independence Day; Columbus Day; Veterans’ Day; Thanksgiving Day; and Christmas
Day.
(2) The permit is to be issued for a specific motor vehicle at a specific residential dwelling
unit and must be prominently displayed in the interior of the vehicle. A temporary
permit issued under this subsection is not transferable to another vehicle. One
temporary permit may be issued under this subsection without a fee. The fee for the
issuance of additional temporary permits under this subsection is set by Crystal city
code, appendix IV. For purposes of this subdivision, the term “legal holiday” means:
New Year’s Day; Martin Luther King Day; Presidents’ Day; Memorial Day;
Independence Day; Columbus Day; Veterans’ Day; Thanksgiving Day; and Christmas
Day. Permit applications shall include, at a minimum, the license plate number of the
vehicle, the address where the vehicle will be parked, the reason for the permit request,
and the name and telephone number of the applicant.
7.2
3
(3) Permits issued under this section may be revoked or suspended at the discretion of the
City for any reason, including but not limited to violation of permit terms.
(4) All permitted on-street parking shall be limited to no more than twenty-four (24)
consecutive hours.
(b) Permit types. Two categories of on-street parking permits may be issued by the City: long-
term parking permits and short-term parking permits.
(1) Long-term parking permit.
A long-term parking permit may be issued for use between April 1 and November 30
of each calendar year. No more than three (3) long-term permits shall be issued per
household per calendar year. The fee for each long-term permit shall be as established
in Appendix IV of the Crystal City Code.
(2) Short-term parking permit.
A short-term parking permit may be issued for a period not to exceed fourteen (14)
consecutive days, and may be issued at any time between January 1 and December 31.
A maximum of four (4) short-term permits may be issued per vehicle per calendar year.
Up to two (2) short-term permits per calendar year may be issued at no cost. The fee
for any additional short-term permits shall be as established in Appendix IV of the
Crystal City Code.
(c) In the event a snow emergency is declared by the City, all vehicles must be removed from
public streets immediately. Vehicles remaining on the street may be subject to citation and
towing in accordance with applicable provisions of the Crystal City Code.
Subd. 4. City parking lots; temporary permits. The police chief is authorized to issue
temporary permits for the parking of a vehicle in a city-owned or operated parking lot between the
hours of 2:00 a.m. to 5:00 a.m. when in the police chief’s judgment special circumstances exist
justifying the issuance of the temporary permit and the purposes of this section will not be impaired
thereby. The permit is to be issued for a specific motor vehicle and must be prominently displayed
from the interior of the vehicle. A temporary permit issued under this subsection is not transferable
to another vehicle. One temporary permit may be issued under this subsection without a fee. The
fee for the issuance of additional temporary permits under this subsection is set by Crystal city
code, appendix IV.
1310.09. Towing authorized. A vehicle parked in violation of this section may be ordered
removed from a public street, alley, or a city-owned or operated parking lot by a police officer
pursuant to Minnesota Statutes, section 169B.035. Before towing any vehicle, the city shall make
reasonable efforts to notify the owner and require that they remove the vehicle. The owner must
pay all costs for the towing and storage of any vehicle towed hereunder. Except in an emergency,
the removal of a vehicle by or under the direction of the police officer does not prevent the
prosecution of a violation of this section.
ARTICLE III. Effective Date. This ordinance is effective upon adoption and 30 days after
publication.
7.2
4
BY THE CITY COUNCIL
Julie Deshler, Mayor
ATTEST:
__________________________________
Kimberly Therres, Assistant City Manager
First Reading: ____________, 20____
Second Reading: __________, 20____
Council Adoption:_________, 20____
Publication:
Effective Date:
7.2
AGENDA
ECONOMIC DEVELOPMENT AUTHORITY OF THE CITY OF CRYSTAL
•REGULAR MEETING •
TUESDAY, JUNE 17, 2025
IMMEDIATELY FOLLOWING THE 7:00 P.M. CITY COUNCIL MEETING
CRYSTAL CITY HALL
COUNCIL CHAMBERS
1.Call to order *
2.Roll call *
3.Approval of minutes from April 15, 2025 regular meeting
4.Select artwork for four traffic signal cabinet wraps at the following locations:
•56th and Regent Ave. N.
•47th and Douglas Dr. N.
•32nd and Winnetka Ave. N.
•36th and Noble Ave. N.
5.Preview of upcoming EDA items *
6.Property status update *
7.Other business *
8.Adjournment *
*Items for which no materials are included in the packet
Page 1 of 3
Minutes of the
Economic Development Authority of the City of Crystal
Regular Meeting
Upper Community Room
4141 Douglas Dr. N.
April 15, 2025
1. Call to Order
President Eidbo called the meeting of the Economic Development Authority of the City
of Crystal (EDA) to order at 7:55 p.m.
2. Roll Call
Upon call of the roll, the following Commissioners were present: John Budziszewski,
David Cummings, Julie Deshler, Forest Eidbo, Traci Kamish, Therese Kiser and Taji
Onesirosan.
The following staff were present: Executive Director Adam Bell, Deputy Executive
Director John Sutter and City Attorney Rachel Tierney.
3. Approval of Minutes
Moved by Commissioner Budziszewski (Deshler) to approve the minutes from the April
1, 2025 regular meeting. Motion carried.
4. Consider developing an offer to purchase real property at 4533 Welcome Ave. N.
EDA action
Moved by Commissioner Kamish (Budziszewski) to close the meeting in accordance
with M.S. 13D.05 Subd. 3(c)(3) to consider developing an offer to purchase real property
at 4533 Welcome Ave. N. Motion carried.
***CLOSED SESSION***
EDA action
Moved by Commissioner Kiser (Deshler) to open the meeting. Motion carried.
5. Preview of upcoming EDA items
Page 2 of 3
Staff informed the EDA that there may be an EDA meeting on June 17 to consider a TIF
plan for the Trident redevelopment project proposed at 7000 56th Ave. N. (former Wells
Fargo property).
6.Property Status Update
Staff updated the board regarding the property at 5500 West Broadway (former Big O
Tires property), the new Daiso store at 5632 West Broadway, and the auto dealership at
5273 West Broadway.
7.Other Business
There was no other business.
8. Adjournment
Moved by Commissioner Budziszewski (Cummings) to adjourn the meeting. Motion
carried. The meeting adjourned at 9:08 p.m.
Page 3 of 3
These minutes of the April 15, 2025 meeting of the Crystal Economic Development Authority
were approved by the Authority on ________________ ___, 2025.
______________________________
Forest Eidbo, President
ATTEST:
______________________________
Traci Kamish, Secretary
Page 1 of 6
EDA STAFF REPORT
DATE: June 11, 2025
FROM: John Sutter, Community Development Director
TO: Economic Development Authority Board Members
City Manager Adam R. Bell
RE: Select artwork for four traffic signal cabinet wraps
Background
In 2024, the EDA wrapped ten traffic signal cabinets with donated artwork.
For 2025, the EDA identified four additional traffic signal cabinets to be wrapped:
1.56th and Regent Ave. N. (southwest corner)
2.47th and Douglas Dr. N. (northwest corner)
3.32nd and Winnetka Ave. N. (southwest corner)
4.36th and Noble Ave. N. (southeast corner)
Crystal resident and professional photographer Elizabeth Peak offered three photographs of
parks near the first three cabinets, respectively, MAC Park, Welcome Park* and Valley Place
Park. Staff recommends proceeding with those selections.
*Some EDA members previously requested an alternate photo of the Crystal Cove Aquatic
Center for cabinet #2 at 47th and Douglas. Staff has been waiting for the pool to be
finished and does not yet have that photo, but will present it to the EDA on June 17.
For cabinet #4 at 36th and Noble:
•Staff worked with the City of Robbinsdale to ask residents of the two cities to donate artwork
for the wrap.
•Four submittals were received by the June 3 deadline, two from residents of each city.
•After redacting the artists’ identifying information, both cities asked residents to participate
in an online poll to select their first and second choices. The poll closes on Monday, June 16
and the results will be presented to the EDA at the June 17 meeting. The poll results are
intended to inform but not determine the EDA decision.
•Staff recommends that the EDA select a first and second choice so staff can proceed with the
second choice if technical issues prevent the use of the first choice.
Page 2 of 6
Map of the Four Cabinet Locations Photos of the Four Cabinets
56th and Regent Cabinet - MAC Park
Page 3 of 6
47th and Douglas Cabinet - Welcome Park
32nd and Winnetka Cabinet - Valley Place Park
Page 4 of 6
Submittals for the 36th and Noble Cabinet
Page 5 of 6
Submittals for the 36th and Noble Cabinet
Page 6 of 6
Anticipated Next Steps
early July Artwork finalized with vendor (including subtle artist recognition)
late July Fabrication of wraps
late Aug. Installation of wraps
Requested EDA Actions (two motions)
1. Approve the submitted photographs of MAC Park, Welcome Park, and Valley Place Park,
respectively, for the cabinets at 56th and Regent, 47th and Douglas, and 32nd and Winnetka.
2. Approve ________________________ as the first choice and ________________________
as the second choice for the cabinet at 36th and Noble. If technical issues prevent the use of
the first choice, staff is authorized to proceed with the second choice.
Please d this form to the City Clerk before the meeting begins.
To provide ample opportunity for all, speaking time is limited
to three minutes and topic discussion is limited to 10 minutes.
(Information provided on this form is open to the public)
(please print clearly)
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Name:-" o V e- 2-
Address: d
Zip Code: D e; _
Day Phone (optional): 1 .. (I
Email (optional):
Thank you for your attendance and participation.
Please hand this form to the City Clerk before the meeting begins.
To provide ample opportunity for all, speaking time is limited
to three minutes and topic discussion is limited to 10 minutes.
(Information provided on this form is open to the public)
(please print clearly)
The topic I wish to address is:& &�'afv-
Name:+CLV\ V+'C- 0 .
Address: ' 5, /
Zip Code• 3-- S-k72 Date: Ui! 1% 2
Day Phone (optional):�St �±2-1 --jQS 2
Email (optional): _
Thank you for your attendance and participation.
Please hand this form to the City Clerk before the meeting begins.
To provide ample opportunity for all, speaking time is limited
to three minutes and topic discussion is limited to 10 minutes.
(Information provided on this form is open to the public)
(please print clearly)
The topic I wish to address is: Chi ege-f Poe LA �
Name: rk AA ,- 'r
Address: 5- a
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