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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. The Clq� oj69cHenn� is r/erllrnled to providing its ciltze++s, businesses, Hart visitors +viih ibe Idgheci grrn/tty ojprogrm++s nud services in a customer-orieuterl, ejJlclenl, mul fiscn!lp responsible mmurer. 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