HomeMy WebLinkAboutPacket - 03/11/2019 - Finance and Personnel CommitteeSpecial Finance and Personnel
Committee Meeting
March 11, 2019-5:30 PM
McHenry Municipal Center —Police Training Room
333 S Green Street
McHenry, IL 60050
AGENDA
1. Call to Order.
2. Roll Call.
3. Public Comment: Persons washing to address the Committee will be asked to
identify themselves for the record and ivill be asked but are not required to
provide their address. Public connnent may be restricted to three -minutes for•
each individual speaker. Order and decorum shall be maintained at public
meetings.
4. Motion to approve the February 4, 2019 Finance and Personnel Committee
meeting report.
5. Discussion on the Proposed FY 19/20 Budget for General Fund (100), General
Fund Operating Departments, Recreation Center Fund (400), water Fund
(510.31), Sewer Fund (510.32) and Utility Fund (510.35).
6. Discussion/Recommendation-Elimination of City Vehicle Stickers.
7. Staff Reports.
8. Any Other Business.
9. Motion to adjourn the meeting.
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FINANCE AND PERSONNEL COMMITTEE
Monday, February 4, 2019
Municipal Center Classroom, 5:30 PM
Call to Order: The meeting was called to order at 5:35 p.m.
Roll Call: Deputy Clerk Meadows called the roll. Roll call: Members present: Chairman Curry,
Alderman Schaefer and Alderman Mihevc. Also in attendance: Finance Director Lynch and
Economic Development Director Martin,
Public Comment: None.
Motion to approve the December 3, 2018 Finance and Personnel Committee meeting report.
Alderman Curry asked if the Committee Members had any questions or comments on the
December 3'd meeting minutes. The Committee Members offered no comments. A Motion was
made by Alderman Schaefer and seconded by Alderman Mihevc to approve the December 3,
2018 Committee meeting report. Roll call: Vote: 3 ayes: Alderman Schaefer, Mihevc and
Alderman Curry. 0-nay, 0-abstained. Motion carried.
Alderman Curry noted that due to the fact a representative from Brake Parts was present he
recommended changing agenda item 6 to agenda item 5. The Committee Members concurred
with Alderman Curry's recommendation.
Property Tax Abatement for Brake Parts-1600 Industrial Drive
Director Martin introduced Brake Parks Vice President/Human Resource Director Mr. Randy
Clausen. The Committee Members along with Staff welcomed Mr. Clausen.
Director Martin provided the Committee Members with an overview of the long history Brake
Parts had with the City. He reported that Brake Parts Inc. is located at 4400 Prime Parkway and
is contemplating relocating their research and development facility from Winchester, Kentucky
to 1600 Industrial Drive in McHenry. They currently own the building at 1600 Industrial Drive,
which has been vastly underutilized for numerous years since their manufacturing facility
relocated to China. The building was constructed in 1975 and is approximately 267,000 square
feet.
He continued on to report that Brake Parts is committed to invest $4.0 million dollars in the
building to provide for the relocation of their Research and Development facility. Staff
recommends offering a propertytax abatement program to make the relocation more attractive.
Director Martin noted that their situation meets the criteria outlined in the Municipal Code and
the Economic Development strategy. He reported that currently the total equalized assessed
valuation is currently $1,883,476.00 or market value equal to $5,650,428,00,
Director Martin reported that Staff is recommending a 10 year 100% abatement over and above
the 2018 City of McHenry taxes for 1600 Industrial Drive which would be the base tax amount,
similar to the methodology utilized in the Fabrik agreement. There was some discussion with
respect to the Equalized Assessed Value of the property over the term of the agreement.
Mr. Clausen reported that the relocation of Research and Development would bring 15-20 new
technicaljobs to the City and the facilitywould be comprise of state -of- arttesting and processing
center. In addition, there are plans to improve the facility s fagade.
Director Martin highlighted Brake Parts long history of community involvement. In addition, to
their charitable donations to various local non -for -profit organizations and community special
events. Mr. Clausen reported that Brake Parts over the last five years has been the local leader
with respect to donations to United Way of Greater McHenry County. Alderman Schaefer
commended Brake Parts for their contributions to the community.
A Motion was made by Alderman Schaefer and seconded by Alderman Mihevc to present to
the full City Council a Property Tax Abatement Agreement for Brake Parts located at 1600
Industrial Drive. Roll call: Vote: 3-ayes: Alderman Schaefer, Alderman Mihevc and Alderman
Curry. 0-nays, 0-abstained. Motion carried. Mr. Clausen thanked the Committee Members for
their time and support.
Discussion on Fiscal Year 19/20 Priorities
Alderman Curry provided the Committee Members and Staff with a list of potential topics which
was discussed in 2017 and 2018. The Committee along with Staff reviewed the list of potential
topics. They collectively discussed various policies that will need to be reviewed in the near
future.
Alderman Curry suggested the Committee discuss the vehicle sticker program. He noted that in
his opinion this program should be eliminated due to the fact that many residents don't purchase
the stickers and there is no enforcement actions in place.
There was some discussion with respect to the Personnel Policy Handbook. Director Lynch
reported that some time back Staff had reviewed and provided the HR Department with
comments and suggestions. Alderman Curry recommended keeping this matter on the radar
screen.
Alderman Mihevc recommended the Committee continue to research new revenue streams.
Alderman Schaefer recommended the Committee review the TIF District agreement which is
scheduled to expire in 2023.
Director Lynch reported that next year the TIF District will show a positive revenue increment.
There was some discussion on tracking the TIF District improvement expenses.
Alderman Curry and Director Lynch will work together to draft a 2019 Finance and Personnel
Topic List,
Staff Reports
The Staff Members provided no reports.
Any Other Business
The Committee offered no other business items for discussion.
Motion to adjourn from the meeting
There being no further public business to discuss, a Motion was made by Alderman Mihevc and
seconded by Alderman Schaefer to adiourn from the public meeting at 6:30 p.m. Roll call: Vote:
3-ayes: Alderman Mihevc, Alderman Schaefer and Alderman Curry, 0-nays, 0-abstained. Motion
carried.
Respectfully submitted,
Debra Meadows, Deputy City Clerk
Reviewed and approved this day of 2019.
Alderman Curry, Chairman