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Home My WebLink AboutPacket - 10/01/2018 - Finance and Personnel Committee ram.,,••••v :. > %1 MCHenr Finance and Personnel Committee October 1, 2018-5:30 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 wishing to address the Committee will be asked to identify themselves for the record and will be asked but are not required to provide their address. Public comment may be restricted to three-minutes for each individual speaker. Order and decorum shall be maintained at public meetings. 4. Motion to approve the September 10, 2018 Finance and Personnel Committee meeting report. 5. Items for Discussion. A. Property Tax 6. Staff Reports. 7. Any Other Business. 8. Motion to adjourn the meeting. Next regularly scheduled meeting is November 5,2018. The City of McHenry is dedicated to providing its citizens,businesses,and visitors with the highest quality of programs and services in a customer-oriented,efrcienG and ftscaAti,responsible manner. FINANCE AND PERSONNEL COMMITTEE Monday, September 10, 2018 Municipal Center Classroom, 5:30 PM Call to Order:The meeting was called to order at 5:32 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, Human Resource Director Campanella and Deputy Clerk Meadows. Public Comment: None. Motion to approve the September 10, 2018 Finance and Personnel Committee meeting report. A Motion was made by Alderman Schaefer and seconded by Alderman Mihevc to approve the September 10, 2018 meeting report as presented. Roll call: Vote: 3 ayes: Alderman Schaefer, Alderman Mihevc and Alderman Curry. 0-nay, 0-abstained. Motion carried. Discussion and Approval of Revised Investment Policy Finance Director Lynch reported that Staff had researched investment polices from other municipalities as well as best practices produced by the GFOA. She noted that the draft investment policy was based mostly on the GFOA sample policy which contains all of the State Statutes as required by 30 ILCS 235, "Public Funds Investment Act". She asked if the Committee Members had any questions or comments on the draft investment policy. The Committee Members briefly discussed the investment policy's amendments. There being no further discussion, a Motion was made by Alderman Mihevc and seconded by Alderman Schaeffer to present the draft investment policy to the full City Council. Roll call: Vote: 3-ayes: Alderman Mihevc, Alderman Schaeffer and Alderman Curry. 0-nays, 0-abstained. Motion carried. Mayor Jett joined the meeting at 5:45 p.m. Discussion of Sales Tax Incentive Policy/Procedures Director Lynch provided the Committee Members with a worksheet which listed the current incentive agreements that the City has with some of the local businesses. The majority of the current sale tax incentive agreements has thresholds on the tax revenue generated and the percentage of the rebate along with a term limit. The Committee discussed in length the appropriate incentive limits and terms of the agreements. Mayor Jett suggested Staff work with Director Martin since he handles the marketing of the City's available commercial and industrial properties. Director Martin would have the experience and knowledge to suggest appropriate incentives that would assist him in enticing new or retaining existing commercial and industrial businesses. This matter will be discussed in more detail at an upcoming Finance and Personnel Committee meeting. Any Other Business. There was no other business to discuss. Staff Reports Director of Human Resources Campanella provided the Committee Members with an update on the City Planner position. She reported that due to low unemployment she has only received a few applications and most of the qualified applicants are not currently residing in the area. However, they did receive one application from a current Planner Intern. Engineer Strange was going to schedule an interview and she will report back. Motion to adjourn the meeting. There being no further public business to discuss, a Motion was made by Alderman Schaefer and seconded by Alderman Mihevc to adjourn from the public meeting at 6:40 p.m. Roll call: Vote: 3-ayes: Alderman Schaefer, Alderman Mihevc and Alderman Curry. 0-nays, 0-abstained. Motion carried. Respectfully submitted, Debra Meadows, Deputy City Clerk Reviewed and approved this day of 2018. Alderman Curry, Chairman Property Tax Discussion 10/1/18 • Estimated PTELL calculation attached o CPI-U All Urban Consumers,All Items is 2.1%(December 2016-December 2017)(used for establishing PTELL) ■ The CPI-U All Urban Chicago,Gary, Kenosha is 1.7%(which we use for salary increases) o Estimated Limited Extension is$4,737,159 which is$118,373 higher than our 2017 extension • After all audit adjustments have been made the 4/30/2018 General Fund Fund Balance is $7,266,368 o The required ending fund balance per the Fund Balance and Reserve Policy is $7,350,447(short$84,079) • 5 Year Capital Improvement Plan is in the early development phase and all department heads have been notified that there are$0 excess funds available for a capital plan for 2019/20. If during the budget process there are budgeted revenues over expenses capital items could be added. o 4/30/18 Capital Improvements Fund Balance (after all audit adjusting entries) is $1,051,046 o FY18/19 Budgeted Capital Items total$773,000 o Leaves$278,046 in the Capital Improvements Fund for capital projects for General Fund Projects • Projected Salary Increases o Local 150$107,790 o FOP-I$141,629 (COLA estimated at 2.75%since contract negotiations are not complete) o FOP-II$72,620 o Non-Bargaining Unit Employees(estimated 3%increase) $127,577 o Total Salary Increases$449,616 • Police Pension Funding—do not have actuarial report yet with the annual funding requirement, FY18/19 increase was$145,484 C( C Property Tax Limitation Worksheet 2018 Tax Year Estimate Levied in 2018-Collected in 2019 Proj EAV 643,321,108 shaded=estimated Prior EAV 624,662,787 3.0% Inflation Factor 2.1% From www.bis.gov/cpi/epiNtables:CPI Detail Report Prior Disconnected = Adjusted Prior EAV 624,662,787 0 = 624,662,787 Adjusted Prior Adjusted ((Extension X (Prior V / Prior EAV)) X imit = Numerator 4,618,786 624,662,787 624,662,787 1.021 4,715,781 Current Current Current EAV Annexed In) - (New Props M X State Mufti)) = Denominator 643,321,108 0 2,901,515 1.0000 640,419,593 (Numerator / Denominator) = Urnitina Rate/100 Eav 4,715,781 640,419,593 0.7364 Estimated Limited Extension K737,169 118,373 2.6% Actual Limited Extension Non-Cap Amount PTELL_WORKSHEET 09125/201e 07:26:25 AM Assessor Estimated EAV Report by Tax District Page 36 of 42 Tax Year: 2018 McHenry County VCMH-MCHENRY CITY Totals New Construction Board of Review Abstract 737,588,820 Commercial 143,991 Exemptions 67,410,578 Farm 0 - Under Assessed 0 Industrial 0 +State Assessed 300,251 Local Rail Road 0 Total EAV 670,478,493 Mineral 0 -Tif Increment)Hone 6,188,321 Residential 2,757,524 r Rate Setting EAV 664,290,172 Total 2,901,515 li Commercial Farm Industrial Local Rail Road Mineral Residential State Rail Road Totals Exemption.Category Value Count Value Count Value Count Value -Count Value Count Value Count Value Count Value Count Parcel Count - 1,034 81 172 - 0 17 10,257 0 11,561 66ardofReylewAbgtract 153,150,072:.' : .1,536,34] 47,111A57 0 1:656,614. 534,133936... : 0 737,588,620 _ - - Home Improvement 0 0 0 0 0 0 0 0 0 0 325,524 100 0 0 325,524 100 Veteren's 0 :: D p:_: .._: -t11 qr_ D. 0 0 U -- 0 rr 0 �0 p..:;i 0 0 -- - < . +State Assessed 0 0 0 0 0 0 300,251 300,251 =EAV -I53,150072 ,1.?: 0 ::.'1 538,341:. 0. 47111;857 0 0 LL ;0 t}56514 Q 6331608a4]2 104 3D0251- 0-.,. 137,563,547 104 _. Senior Assessment Freeze 0 0 0 D 0 0 0 0 0 0 6,729,297 700 0 0 6,729,297- 700 Owner occupied QQ 1 18,OOQ;.: 3 Q k. :-0 0 44 ti44 389 %.7 429 Q._ fl c 44,`a58,369 7;433:. Senior Citizens 0 0 15,000 3 0 0 0 0 0 0 10,452,027 2,091 0 0 10 467,027 2,094 - — - _ _ '=.�Isd410dPEr#or1 �: -0 0 ='c {4.•:. D 10 :0 =D :-0 ._ 0 D .9$d000 °`^230 Disabled Veteran 0 0 0 0 0 0 0 0 0 0 4,540 775 1 D8 0 0 4,540,775 108 wReturrting Veteran.- - 0 0 0-_ II p >, 4 .D - fl ` 0 R� Natural Disaster 0 0 0 0 0 0 0 0 0 0 0 0 0 0 D 0 Fraternal freeze 30 378 :: i g. 0 D 13`:; ': Q _ 0 - q D - -A 30 37¢ q; _ D _ Vet Freeze 235,983 2 0 0 0 0 0 0 0 0 48,225 3 0 0 284,208 5 Uhder A4§essed 0 0= :D _ E•2:one 0 0 0_,. 0 0 0 0 0 0 0 0i 0 0 0 0 0 4 os1$D7 ---'a - 0 Q-. -0 Dc 0 T S26t�14 :i 0D'' 0- - 32t 2 Drainage 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 kable Valug 148,875 904 1 5Q3 341 47,a12 ti4T r 0-. 1,ti58,614 464;902,205 600 5Q2' 6b4,2$0,�72 i:. i Copyright(C)1997-2018 DEVNET Incorporated CASAUNDE i