HomeMy WebLinkAboutPacket - 04/11/2018 - Committee of the WholecHenr
RESCHEDULED
MEETING OF THE COMMITTEE OF THE WHOLE
The April 9, 2018 regularly scheduled meeting of the
Committee of the Whole is rescheduled to:
Wednesday, April 11, 2018, 6:30 PM
McHenry Municipal Center Classroom
333 South Green Street, McHenry, IL
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1. Call to Order.
2. Roll Call.
3. Pledge of Allegiance.
4. Public Comments. Any person 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.
5. Discussion Only Items:
A. Review of the Proposed Fiscal Year 2018/19 Annual Operating Budget.
6. Staff Reports.
7. Mayor and City Council Comments
8. Adjourn.
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, efficient, and fiscally responsible manner.
Derik Morefield, City Administrator
McHenry Municipal Center
333 Green Street
McHenry, Illinois 60050
Phone: (815) 363-2100
Fax: (815) 363-2119
dmorefield@ci.mchenry.il.us
Draft. in18/19 Budget Transmittal
Memorandum
DATE: April 2, 2018
TO: City Council
FROM: Derik Morefield, City Administrator
Carolyn Lynch, Director of Finance
RE: Transmittal of Draft FY18/19 Budget for Review in Preparation for April 11, 2018
Committee of the Whole Meeting
ATT: March 12, 2018 Finance and Personnel Committee Agenda Supplement for
Discussion of FY18/19 Budget Information for the General Fund (100), General
Fund Operating Departments, Recreation Center Fund (400), Water Fund
(510.31), Sewer Fund (510.32) and Utility Fund (510.35)
March 26, 2018 Finance and Personnel Committee Agenda Supplement for
Discussion of FY18/19 Budget Information for All Funds
March 12 and March 26 Finance and Personnel Committee Meeting Minutes
(Unapproved)
Draft FY18/19 Budget with All Supplemental Information
The purpose of this memorandum is to transmit to Council the complete Draft FY18/19 Budget
for review prior to the April 11, 2018 Committee of the Whole meeting.
The Finance and Personnel Committee met on Monday, March 5, 2018 to review the General
Fund Operating Funds, Recreation Center Fund, and Water/Sewer/Utility Fund. The
agenda supplement for this meeting (less the budget spreadsheet attachments) is attached for
your information.
The Finance and Personnel Committee met again on Monday, March 26, 2018 to review any
changes that were recommended at the March 5tn meeting and to review all other funds. The
agenda supplement for this meeting (less the budget spreadsheet attachments) is also attached
for your information. At the close of this meeting it was recommended that the full budget
document be forwarded to Council for additional discussion at the scheduled April 11, 2018
Committee of the Whole meeting.
The unapproved minutes from both meetings (scheduled for review at the April 2, 2018 Finance
and Personnel Committee meeting) are also attached.
The two supplements referenced above will provide Council with a comprehensive overview of
the Draft FY18/19 Budget, including any changes made between the two meetings, and therefore
the information provided in these documents will not be reposted as part of this memorandum.
The budget spreadsheets are not provided with the above because the final spreadsheets are
included as part of the attached full budget document.
In the upcoming week, Staff will continue to review the budget document to identify any
additional changes that may be required, in addition to any inconsistencies resulting from
transcribing numbers or information, and will identify these to begin the April 11tn meeting.
Additionally, the Finance and Personnel Committee will have discussed the results of the
compensation study and new position requests at their Monday, April 2, 2018 Finance and
Personnel Committee meeting (held just prior to the April 2nd City Council meeting) and the
results of this discussion will also be discussed on April 11tn
The format of the April 11tn Committee of the Whole meeting will be the same as the City
Council's discussion of the Capital Improvement Program, and Staff will be in attendance to
address any questions that Council may have. Based on the outcome of this meeting, further
discussion may be held at a currently scheduled Committee of the Whole meeting scheduled for
Monday, April 23rd. However, should there be no need for further discussion, the April 23rd
meeting will be canceled and the final draft of the budget transmitted for adoption at the annual
meeting on Monday, April 30, 2018.
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Derik Morefield, City Administrator
McHenry Municipal Center
333 Green Street
McHenry, Illinois 60050
Phone: (815) 363-2100
Fax: (815) 363-2119
dmorefield@ci.mchenry.il.us
FINANCE AND PERSONNEL COMMITTEE
AGENDA SUPPLEMENT
DATE: March 12, 2018
T0: Finance and Personnel Committee
City Council
FROM: Derik Morefield, City Administrator
Carolyn Lynch, Finance Director
RE: Transmittal of Proposed FY18/19 Budget Information for the General
Fund (100), General Fund Operating Departments, Recreation Center
Fund (400), Water Fund (510.31), Sewer Fund (510.32) and Utility Fund
(510.35)
ATT: Summary Sheets for:
General Fund - Revenues, Expenditures and Fund Balance
Personnel Summary of Wages (All Funds)
General Fund Operating Budgets
Identified Capital Improvement Projects
Recreation Center Fund
Water, Sewer and Utility Funds
Personnel Requests and Justifications
AGENDA ITEM SUMMARY:
The purpose of this agenda item is for the Finance and Personnel Committee and City Staff
to discuss information regarding the FY18/19 Budget. This meeting will focus on reviewing
the following information:
• General Fund Revenues, Expenditures and Fund Balance (FYI 1/12-FY16/17 Actuals,
FY17/18 Estimated, FY18/19 Proposed);
• Personnel Summary of Wages (All Funds);
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• Proposed General Fund Expenditures (Administration, Elected Officials, Community
Development, Finance, Police, Dispatch Center, Public Works - Administration, Public
Works - Streets, Parks and Recreation);
• Recreation Center budget;
• Capital Improvement and Capital Equipment projects based on available funding;
• Water and Sewer Fund revenues;
• Water and Sewer Fund expenditures related to Water, Sewer, Utility Division
operations and capital projects; and
• Personnel requests and justifications.
You will note that the above list does not include a review of every fund that comprises the
annual budget. However, these funds include all operational and personnel costs and serve
as the basis for determining how the remaining municipal fund budgets are developed. Once
the Finance and Personnel Committee has had a chance to review these fund budgets at the
March 12, 2018 Finance and Personnel Committee Meeting, staff can then develop the
remaining fund budgets for review at the March 26, 2018 Finance and Personnel Committee
Meeting,
BACKGROUND:
The City's annual fiscal year budget covers the period beginning May 1St and ending April
30th. The budget document itself, upon completion, contains information relative to
estimated revenues and planned operational and capital expenditures for the various funds
of the municipality for the identified fiscal year.
Although the budget is not formally adopted by the City Council until April of each year, the
budget development process officially begins each October with the preparation of the
annual tax levy, which is used to fund many of the current programs and services, along with
the development/update of the five-year Capital Improvement Program (CIP). The budget
preparation process provides the various divisions and departments of the City with the
opportunity to review accomplishments, set goals and objectives, and identify the means for
accomplishing these goals and objectives.
Every employee of the municipality plays a role in the budgeting process - be it formulation,
preparation, implementation, administration, or evaluation. Ultimately, Department
Directors, through the City Administrator, are accountable to the City Council and to the
residents of McHenry for the performance of departments in meeting goals and objectives,
and for the diligent fiscal management of funds, as set forth in the budget document.
Department Directors, with input from their respective managers, superintendents and
departmental staff, analyze historical data, review existing operational needs, and project
anticipated operational needs in order develop line -item budget requests that allow them to
maintain or enhance the level of programs and services within their departments. These
detailed requests are then submitted to the City Administrator and Finance Director and
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meetings are held with Department Directors to review and adjust requests based on
identified need and anticipated revenues, keeping in mind the overall services that the
municipality must provide to residents. As always, it is the goal of the City Administration
to present Council with a balanced operating budget which is achieved in the attached
information.
The discussion that follows includes analysis and recommendations based on the best
available information that staff has at the current time and reflects a commitment to meeting
or exceeding budgetary guidelines as established by the National Advisory Council on State
and Local Budgeting and the Government Finance Officers Association best practices on
budgeting.
ANALYSIS -GENERAL FUND:
The General Fund represents the core revenue and expense fund for municipal functions.
General Fund Revenues are comprised of Intergovernmental sources such as Property Tax,
State Sales Tax, Local Sales Tax, State Income Tax, State Replacement Tax, State Pull Tabs,
Inter Track Wagering, State Communications Tax, and State Grants; Local Sources such as
Franchise Fees, Licenses and Permits, Fines and Forfeitures, Charges for Services, and
Interest Income; and Miscellaneous sources such as Donations and Reimbursements for
Services.
General Fund Expenses include personnel, contractual, supplies and other operating
expenses related to the following operating budgets - Administration (100.01), Elected
Officials (100.02), Community Development (100.03), Finance (100.04), Human Resources
(100.05), Economic Development (100.06), Police Commission (100.21), Police (100.22),
Police Dispatch (100.23), Public Works -Administration (100.30), Public Works -Streets
(100.33), and Parks and Recreation (100.41).
Please reference the attached spreadsheet titled "General Fund - Revenues,
Expenditures and Fund Balance Summary"for the following discussion,
General Fund Revenue. Expenditure and Fund Balance Summary
In summary, FY18/19 proposed General Fund Revenues and Expenditures reflect total
revenues of $22,309,740 (an increase of $479,423 or 2.2% from the FY17/18 Budget
amount) and total operating expenditures of $22,188,850 (an increase of $374,206 or 1.7%,
less capital, from the FY17/18 Budget amount) - for a net difference (revenues over
expenditures) of $101,240. Importantly, this means that the proposed General Fund
Operating Budget, as presented, is BALANCED.
While specifics will be detailed in the discussion that follows, the primary reasons for
increases in revenues relate to projections for State and Local Sales Taxes (an increase of
$547,765 combined), the projection for Video Gaming revenues (an increase of $55,000), the
projection for Franchise Fees revenues (an increase of $20,000) and Reimbursements
related to charges for services from parks programs and internal fund transfers (an increase
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A $51,292). These are offset by decreases to Property Tax revenues due to the Road &
Bridge levy ($25,000), State Income Tax receipts ($140,358), and Fines and Forfeiture
revenues ($29,000).
In regards to expenditures, Personnel costs are proposed to increase by $347,103 (2.09%)
due primarily to the union contractual obligations ($185,427), an estimated 2.75% increase
to non -bargaining unit employees ($82,678), and Police Pension costs ($145,484). These
increases were offset by the decreased benefit costs due primarily to moving health
insurance to the pooled insurance group ($70,283). It should be noted that a portion of the
Police Dispatch Center costs are offset by General Fund Revenue increases in the form of
reimbursements (Row 22) from dispatch partner agencies and customers. Notably, FY18/19
General Fund Expenditure proposed Contractual costs are $32,247 (1.68%) lower than
FY17/18 and Supply costs reflect a decrease of $6,915 (0.87%).
Finally, the FY18/19 Expenditures, as identified in this attachment, do not include any
transfers for Capital Improvement or Capital Equipment projects (if included, this would be
found in Column K, Row 34). It is important to remember that any Capital Improvement or
Capital Equipment projects implemented in FY18/19 will be funded through the General
Fund Balance or General Improvement Fund - Assigned for Capital, which was transferred
with the FY16/17 audit less the amount spent on FY17/18 capital expenses. All general fund
capital projects that are identified for funding in FY18/19 are discussed on pages 17 and 18
of this memorandum and will be included in the separate Capital Improvements Fund
budget.
Carrying the General Fund Revenue and Expenditure estimates through the end of the fiscal
year (April 30ui), it is projected that the total General Fund Balance will be $7,557,987
(Column J, Row 43). As defined in the Fund Balance and Reserve Policy, this would result in
a 120 day General Fund Balance Reserve of $7,283,317 and a General Fund Assigned to
Capital amount of $274,670. As will be identified, this amount will be reduced by capital
improvement projects to be funded through the General Fund Balance (Timothy/Clover
Water Main Improvements, Green Street Bridge Rehabilitation, Lakeland Park Drainage
Improvements). Further, a reminder that the FY17/18 Estimated General Fund Revenues
and Expenditures are that, estimates, and economic factors or unforeseen expenses could
change these dollar amounts before the end of the current fiscal year.
General Fund Revenues
General Fund Revenues are derived from anumber ofsources -taxes, video gaming, licenses
and permits, fines and forfeitures, franchise fees, charges for services, reimbursement for
services, donations, interest income, and other miscellaneous sources. While some
revenues, like Property Taxes, can be clearly identified and anticipated based on the
adoption of the annual property tax levy, or based on historical performance, other revenues
- such as Sales Taxes and State Income Tax - can be volatile based on economic trends.
If anything, the economic recession of 2007/2008 sent a message to local governments that
economic -based revenues are not guaranteed and can fluctuate based on the economy and
disposable income. Actions taken at the local level to plan/adjust from this event resulted in
the establishment of a new norm" for future budget considerations. Further, given the
budget crisis of the State of Illinois provides for continuing fiscal uncertainty since decisions
at the state level can have an immediate and devastating impact on state -shared revenues.
This has been realized through recent actions such as delayed state -shared revenue
payments resulting in municipalities having to utilize fund balances or make operational
adjustments to decrease expenditures, and in analyzing the State's more recent threat of
reducing the Local Government Distributive Fund (LGDF) by 50%. The current legislation
reduces the Local Government Distributive Fund (LGDF) distribution by 10% and charges a
2% administrative fee for local sales tax collection. This results in approximately a $178,000
reduction in General Fund revenues.
In estimating General Fund Revenues for the purpose of budget development, the City
Administration takes a conservative approach in order to: 1) ensure that General Fund
Revenue projections are not overstated to avoid deficit spending and the need to utilize the
General Fund Balance (e.g., 120 day unassigned fund balance); 2) limit excessive increases
in operating expenditures; and 3) maintain a financial "buffer", in the form of the General
Fund Balance, to protect the City from future unforeseen economic threats. Utilizing this
philosophy, the City Administration then considers past revenue performance, current
economic trends, local economic conditions, and economic forecast models developed by the
Illinois Municipal League (IML) for use by local governments in developing revenue
projections for the purpose of budget development.
FY17/18 Budgeted Revenues (Column 1)
In FY17/18 total budgeted General Fund Revenues were $21,830,317 (Column I, Row 26).
Of this, $4,967,359 (22.8%) was from Property Taxes, $7,176,624 (32.9)% was from the
City's 1% share of the State Sales Tax, $1,948,118 (8.9%) was from the .S% Local Sales Tax,
and $2,726,192 (12.5%) came from the City's share of the State Income Tax. Revenues
derived from these four (4) sources were budgeted at $16,818,293 or 77.1% of total General
Fund Revenues. Of the remaining $5,012,024 (22.9%) in budgeted General Fund Revenues,
$11163,842 (5.3%) were from Charges for Services, $2,043,382 (9.4%) from Reimbursement
for Services, $393,300 (1.8%) from Fines and Forfeitures, $367,500 (1.7%) from Licenses
and Permits, $325,000 (1.5%) from Franchise Fees, $375,000 (1.7%) from Video Gaming,
and the remaining $344,000 (1.5%) came from all other sources combined.
FY17/18 Estimated Revenues (Column J)
The following estimated revenues are based on 10-months of actual revenues and then
projected through the remainder of the fiscal year (April 30, 2018). Unfortunately, in some
cases this estimation is more difficult than simply dividing the 10-month actual by 10 and
multiplying by 12 because of when specific revenues are received. Further, FY17/18 Actual
revenues will not be known and confirmed until approximately 2-3 months (June -July) after
the close of the fiscal year due to the timing involved with the receipt of state -shared
revenues and, ultimately, the completion of the annual audit in September/October 2018, 4-
5 months into the new budget year.
At this time, estimated General Fund Revenues are projected to be $22,199,678 (Column J,
Row 26) or $369,361 (1.7%) higher than FY17/18 Budgeted revenues of $21,830,317. This
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reflects an estimated increase of $280,691, or 1.3%, from FY16/17 Actual revenues of
$21,9181987.
Notably, FY17/18 Estimated Revenues, when compared to FY16/17 Actual revenues and
FY17/18 Budgeted revenues, highlight the following.
• (Row 10) State Sales Tax revenue is projected to be $496,009 (6.9%) higher than
budgeted and $410,661 (5.7%) higher than the FY16/17 Actual amount.
• (Row 11) Local Sales Tax revenue is projected to be $36,751 (1.9%) higher than
budgeted and $39,263 (2.0%) higher than received in FY16/17.
• (Row 10 +Row 11) Combined, total Sales Tax revenue is estimated to be $532,760
(5.8%) higher than budgeted and $449,924 (4.9%) higher than the FY16/17 Actual.
State Sales Tax have shown significant signs of an economic recovery, but are showing
signs of "leveling off' in the upcoming years. Also, Local Sales Tax revenues do not
include the sale of licensed or titled items - such as cars, boats, motorcycles, etc. As
such, while the economic recovery and resulting increase in the sale of licensed
vehicles had a positive impact on the City's portion of the State Sales Tax, this aspect
has had no impact on Local Sales Tax revenues.
• (Row 12) State Income Tax receipts are estimated at $296,912 (10.9%) lower than
budgeted and $115,687 (4.6%) lower than FY16/17.
• (Row 17) Video Gaming revenues are estimated to be $429,570, or $54,570 (14.6%)
higher than budgeted and $2,410 (0.6%) lower than FY16/17H
• (Row 20) Fines and Forfeitures revenues are estimated to be $33,265 (8.5%) lower
than budgeted due to lower traffic fine receipts and $2441836 (40.5%) lower than
FY16/17 due to one-time seizure funds that were received from the federal
government for services provided by the McHenry Police Department.
• (Row 22) Reimbursements for services revenues are estimated at $101,332 (5.0%)
higher than budgeted and $817,483 (61.6%) higher than FY16/17. This is primarily
due to the dispatch consolidation and cost reimbursements by partner and customer
agencies for dispatch services.
In summary, FY17/18 Estimated Revenues are projected at $369,361 [1.7%) higher
than budgeted primarily due to State and Local Sales Tax receipts and
Reimbursements directly related to the consolidation of dispatch services. When
compared to FY16/17 Actual revenues, total General Fund Revenues increased
$280,691(1.3%).
FY18119 Proposed Revenues (Column K)
FY18/19 Proposed General Fund Revenues represent a net increase of $479,423 (2.2%)
from FY17/18 Budgeted revenues and an increase of $390,753 (1.8%) from FY16/17 Actual
revenues. Highlights of changes to General Fund Revenues proposed for FY18/19 include:
• (Row 9) Based on Council action to freeze the property tax levy and the recent actions
of Nunda Township Road District, Property Tax revenues are proposed to decrease
by $25,000 (0.5%) from the FY17/18 Budgeted amount.
• (Row 10) State Sales Tax revenues are proposed at $7,699,625, $523,001 or 7.29%
higher than FY17/18 Budget.
• (Row 11) Local Sales Tax revenues are proposed at $1,972,882, an increase of
$24,764 (1.3%) from FY17/18.
• (Row 10 +Row 11) Combined State and Local Sales Tax revenues are proposed at
$9,672,507, an increase of $547,765 (6.0%) from the FY17/18 Budget amount.
• (Row 12) State Income Tax revenues are proposed at $2,585,834, a decrease of
$140,358 (5.15%) from FY17/18.
• (Row17) Video Gaming revenues are proposed at $430,000, a $55,000 (14.7%)
increase from FY17/18 Budget amount.
• (Row 20) Fines and Forfeitures revenues are proposed to decrease by $29,000, or
7.37% from the amount budgeted in FY17/18.
• (Row 21) Charges and Services revenues are proposed to increase by $51,292, or
4.41%fro111 the amount budgeted in FY17/18 due to charges for parks and recreation
programs as well as internal fund transfers.
• (Row 22) Reimbursements related to the full opening of the Police Dispatch Center
on May 1, 2017 and the resulting revenues derived from partner and customer
agencies served through this facility are proposed to increase $7,224 or 0.35%.
In summary, FY18/19 Proposed Revenues are $479,423 (2.20/n) higher than budgeted
in FY17/18 and $110,062 (0.5%) higher than FY17/18 Estimated revenues. The
primary reasons for the proposed increase an increase in the City's portion of the State
Sales Tax ($523,001), a proposed 14.7% increase in Video Gaming revenues
($55,000), and an increase in Charges for Services Revenues (51,292). These
increases are offset by reductions to Property Tax revenues of $25,000 (0.50%), State
Income Tax receipts of $140,358 (5.15%), and Fine and Forfeitures of $29,000
(7.37%).
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General Fund Expenditures
General Fund Expenditures include personnel, contractual, supplies and other operating
expenses related to the following operating budgets - Administration (100.01), Elected
Officials (100.02), Community Development (100.03), Finance (100.04), Human Resources
(100.05), Economic Development (100.06), Police Commission (100.21), Police (100.22),
Police Dispatch (100.23), Public Works -Administration (100.30), Public Works -Streets
(100.33), and Parks and Recreation (100.41).
In addition, the General Fund is the funding source for all capital improvement and capital
equipment projects that are not related to water and/or sewer improvements or
maintenance projects as these are funded through the Water and Sewer Fund and Capital
Development Fund, General Fund capital improvement and capital equipment projects
include any project over $10,000 related to public facility improvements and maintenance
items, police vehicle and equipment acquisition or replacement, non -police vehicle
acquisition or replacement, park improvements, and stormwater/drainage improvements.
As a frame of reference, the FY18/19-FY22/23 Capital Improvement Program contains more
than $55 million in General Fund projects, including more than $44 million in local street
improvements. Without a doubt, the needs identified in the Capital Improvement Program
far exceed the funding available for them.
Finally, the General Fund also serves as a funding source for revenue transfers to other
municipal accounts found within Special Revenue Funds, Debt Service Funds, Internal
Service Funds, and Fiduciary Funds.
FY17/18 Budgeted Expenditures (Column I)
In FY17/18 budgeted expenditures were $23,258,623, budgeted capital expenditures were
$1,443,979. Budgeted operating expenditures were $21,814,644 for FY17/18. While this
amount reflected a decrease of $1,695,432 (6.8%) from the FY16/17 Actual expenditures
(Column H, Row 35), much of this decrease was due decreased Capital Improvement and
Capital Equipment expenditures.
FY17/18 Estimated Expenditures (Column J)
In general, City Administration - including Department Directors, Superintendents,
Managers - closely monitor expenditures throughout the year to ensure that operating
budgets stay within the approved amounts. Fiscal diligence on behalf of all of these
individuals most often results in expenditures being less than the amount budgeted. This
then can be reviewed and adjusted accordingly as part of the succeeding year budget
development.
For FY17/18, operating expenditures are estimated at $21,824,710, or $10,066 (0.04%)
more than the budgeted amount of $21,814,644. A budget amendment was completed in the
dispatch budget for $72,292 eliminating the budget overage. Highlights of changes to
FY17/18 Estimated Expenditures include:
• (Row 29) Reduced Personnel costs of $152,100 (0.9%) resulting from decreased
insurance costs from the IUOE 150 union as well as the new insurance consortium.
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• (Row 30) Contractual costs are estimated at $100,460 (5.2%) more than the original
budget. A budget amendment was completed for the dispatch contractual services
account for $72,292 making the overage only $28,168 which can be attributed to
increased street lighting costs.
• (Row 31) Supply costs are estimated at $621372 (7.9%) more than budget. This is
largely due to purchases of refuse stickers that are recouped through revenues and
the tree program that was budgeted in FY16/17, but spent in FY17/18 and a grant
was received to cover these expenses.
• (Row 32) Other estimated expenditure are estimated at $666 less than the original
budget.
• (Row 33) Capital Outlay expenditures are $106,361 more than the original budget,
but a budget amendment was completed for $128,684 for roof top units and dispatch
equipment.
Note: City Administration anticipates changes to FY17/18 Estimated expenditures due to
increases or decreases in revenues and expenses through the end of the fiscal year.
FY18/19 Proposed Expenditures (Column K)
FY18/19 Proposed operating expenditures represent an increase of $374,206 (1.7%) from
the FY17/18 operating Budget amount of $21,814,644. It is important to note that the
FY17/18 Budget amount included a transfer of $1,429,579 for Capital Improvement and
Capital Equipment funding which was completed with the FY16/17 audit, while the FY18/19
Proposed amount includes no funding for capital as this will be found in the Capital
Improvement Fund budget. Highlights of changes to General Fund Expenditures proposed
for FY18/19 include.
• (Row 29) Personnel costs are proposed at $347,103, or 2.09% higher in FY18/19 than
budgeted in FY17/180 Personnel costs include salaries, overtime,
health/dental/life/vision insurance, FICA, IMRF retirement, and uniforms. There are
number of reasons for this increase.
1. Personnel costs related to salaries only for employees covered by collective
bargaining units - IUOE Local 150 (Public Works, Parks employees), FOP Unit
1 (Police Patrol), and FOP Unit 2 (Dispatch) - account for $189,316 of the
identified increase from FY17/18 to FY18/19.
2. Police Pension costs are proposed at $2,019,703, an increase of $145,484.
Police Pension costs are determined by an actuary retained by the Police
Pension Board and are based on a number of factors, including wages,
investment rate, and age of the workforce. The City has committed annually
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to funding the amount determined by the actuary in order to meet a required
deadline for full funding by 2030.
3. Non -bargaining unit employees and Police Sergeants account for a total of
$69,046 of the Personnel cost increase. Police Sergeants and other non -
bargaining employees receive wage increases based on a combination of the
previous year's Consumer Price Index for All Urban Areas (CPI-U), which was
1.7% in 2017, and an opportunity for an additional merit increase based on
performance evaluations. The target increase average for FY18/19 for these
employees is 2.75%, with some employees receiving less than this amount and
some receiving more. This will be addressed later as part of the Personnel
Summary - Wages discussion.
4. Health insurance costs are proposed to decrease $126,504 due to IUOE Local
150 insurance tier changes as well as joining Intergovernmental Personnel
Benefit Cooperative for all non -bargaining unit employees.
• [Row 29) Contractual costs are anticipated to decrease by $32,247 (1.68%) from the
amount budgeted in FY17/18.
• (Row 30) Supplies expenditures are proposed to be reduced by 0.87% ($6,915)
primarily due to lower commodity costs (i.e., gasoline and utilities).
• (Row 31) Other expenditures are anticipated to decrease by $1,550 (0.22%).
GENERAL FUND BALANCE:
On February 1, 2016 City Council adopted a new Fund Balance and Reserve Policy that, in
summary, established principles and parameters to which balances for all municipal funds
would be defined at the beginning of each budget period. This policy, which also meets the
reporting requirements of Government Accounting Standards Board (GASB) Statement 54,
which requires the formal adoption of a policy for the classification of fund balances to
categories other than "unassigned", was established to provide financial stability in the
various municipal funds, ensure adequate cash flow for operations, and provide some
assurance that the City will be able to respond to emergencies with fiscal strength.
In regards to the General Fund Fund Balance, specifically, the Fund Balance and Reserve
Policy states:
"General Fund -The unrestricted fund balance target should be set at 120 (4
months) of estimated operating expenditures including those expenditures
reported in other Governmental Funds that receive annual operating transfers,
with the exception of transfers intended to fund capital projects. If the
unreserved fund balance falls below 120, a plan will be developed to return to
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the target balance. If the unreserved fund balance reaches a low of 90-day (3
months), the plan will be implemented to return to the fund balance to the target
within a reasonable amount of time. Onetime revenues shall not be used to fund
current operations."
This level of fund balance shall provide the capacity to:
• Offset unexpected downturns in elastic revenues due to fluctuations in the
local, state and national economies or the loss of major sales tax
contributor(s);
• Offset negative fiscal changes brought about by action or legislation of
another unit ofgovernment or agency;
• Ensure the continued, timely repayment of debt obligations that the City may
have in the event of a financial downturn;
• Provide a sufficient cash flow for daily financial needs at all times; and,
• Provide a funding source for unanticipated expenditures or emergencies that
may occur.
As identified, the parameters in this policy help to guide the City Administration in the
development of the annual budget by ensuring that the General Fund Budget is presented as
balanced, revenues over expenditures, while maintaining this reserve. Further, the
establishment of the target minimum of 120 days provides clarity in identifying the level of
funding that is available - once revenues, expenditures and fund balance are identified - to
address the City's capital needs. In other words, any funds remaining after meeting the
operational and reserve needs of the municipality are "Assigned for Capital."
As a reminder, a combination of the economic recession of 2007/2008 and the loss of a major
retailer resulted in the municipality taking measures to freeze or reduce expenditures. This
included operating costs and capital improvement and capital equipment projects. In 2009
the City implemented a .5% Local Sales Tax and specifically identified that the additional
revenues generated by this should be used for capital projects and Police Pension funding.
Since the first full year of implementation of the Local Sales Tax and as a result of a recovering
economy, the City has been able to: 1) adopt a balanced General Fund Budget, including
meeting Police Pension costs; 2) reintroduce capital improvement and capital equipment
projects; and, 3) rebuild the General Fund Balance.
In reviewing the General Fund Balance as part of this discussion, the FY17/18 Budget
includes a beginning fund balance of $7,303,780 (Column I, Row 6) based on FY16/17
audited financial information. Based on FY17/18 budgeted revenues and operating
expenditures, it was anticipated that the ending fund balance would be $7,305,053 (Column
I, Row 43); the ending unassigned 120 day fund balance at $7,283,317 (Column I, Row 44),
with $21,736 (Column I, Row 45) remaining to be assigned for capital in developing the
FY18/19 Budget.
11
The FY18/19 Budget then identifies a beginning fund balance of $7,557,987 (Column K, Row
6). As in the discussion above, this amount will most likely change upon completion of the
annual audit however, this is not done until September/October, 4-5 months after the budget
is adopted and implemented. The FY18/19 unassigned and assigned for capital amounts are
variable depending on the amount identified for capital projects (discussed later in this
document).
PERSONNEL SUMMARY OF WAGES (ALL FUNDS):
Please reference the attached spreadsheet titled "Personnel Summary -Wages Only (All
Funds)"for the following discussion.
Prior to presenting a summary of General Fund operating departments it is important to
define that the "4010 Salaries" budget line items in each operating budget include more than
just employee wage costs but also includes annual payouts for sick time per the City's
Personnel Manual. In addition, the 4010 line item for all but the Police budget is a combined
total of both bargaining and non -bargaining employees within that specific budget. As such,
the 4010 line items in each operating budget show different percentage variances.
In an effort to provide the reader with a more accurate summary of wages, staff has
developed the attached Personnel Summary - Wages Only (All Funds) sheet. This sheet
includes a summary of wages only (e.g., no benefits, sick day buyouts, etc.) as an overview of
all municipal departments (Rows 6 - 12), and identifies the net then by operating budget
and/or fund (Rows 15 - 73). Each summary presents non -bargaining and bargaining
employees separately, and identifies the FY17/18 Budgeted wages (Column E), FY17/18
Estimated wages (Column F), FY18/19 Proposed wages (Column G), the monetary variance
from the FY17/18 Estimated wages and the FY18/19 Proposed wages (Column H), and the
percent variance from the FY17/18 Estimated wages to the FY18/19 Proposed wages
(Column I). Note that Columns H and I is a comparison of estimated to proposed wages
as distinct from a budgeted to proposed comparison since the FY18/19 Proposed
wages are based on an increase from the FY17/18 Estimated wages. In general,
significant increases or decreases in dollar amounts and percentages, as identified,
are the result of employee reassignment or reclassification or increases and decreases
in the actual number of employees.
One example of this is the decrease in General Administration (Rows 16, 18). Based on the
creation of separate budget accounts for Human Resources and Economic Development in
FY18/19, the salaries for the Human Resources Director (Row. 32) and salaries for the
Director of Economic Development, Economic Development Coordinator, and an Economic
Development Office Assistant (Row 36) were moved into the corresponding budgets. An
example of a significant increase is in the Finance Department (Row 27) which is the result
of the reclassification of an office employee from the Parks Department (Row 65).
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Non -Bargaining Unit Employees
FY18/19 is the third year that non -bargaining employee wages are to be determined based
on a combination of an identifiable "Cost of Living Adjustment" (COLA) in the form of the
previous calendar year's Consumer Price Index for All Urban Areas (CPI-U) and merit.
Previously, (and before the 2007/2008 recession), non -bargaining employees received
automatic "step" adjustments each year (which were in the range of 3% - 4%) and a COLA
increase. While annual evaluations were undertaken, the actual amount of wage increase
was not merit -based.
The Consumer Price Index (CPI) is a measure of the average change in prices over time in a
fixed market basket of goods and services. The CPI for All Urban Consumers, or CPI-U,
applies to approximately 88% of the nation's population, including McHenry County. CPI-U
is an economic indicator and is the most widely used measure to determine inflation and
indexation (i.e., adjusting income payments). As a component of McHenry's compensation
system for non -bargaining unit employees, the CPI-U ending in December of each year, as
determined by the United States Bureau of Labor Statistics, serves as the base salary increase
the succeeding municipal fiscal year (May 1st). To be eligible for this base increase an
employee must receive an overall average of at least 3.0 out of 5.0 on the Annual Employee
Performance Evaluation. Individuals falling below a 3.0 are not eligible for a CPI-U
adjustment and are placed on a performance improvement plan. The CPI-U average since
1992 is 2.128% and the CPI-U for the period ending December 2017 is 1.7% (down from
2.1% from the previous December).
In addition, as identified above, non -bargaining employees are also eligible for a merit
increase based on the results of annual performance evaluations. This is a percentage of
salary over and above the CPI-U wage adjustment and the amount of merit available varies
based on funding identified in the budget. Because performance evaluations are not
completed until after the budget process an overall average for non -bargaining unit
employees is used for the purpose of developing the budget. For FY18/19 this amount is
identified at 2.75%. This would provide for a 1.7% CPI-U adjustment with an additional
average merit increase of 1.05%. Therefore, most non -bargaining unit rows will show
"2.75%" as the percent variance from FY17/18 Estimated to FY18/19 Proposed. As
described earlier, percentages higher or lower than the 2.75% are the result of specific
changes within that department resulting in an increase or decrease to the FY17/18
Estimated amount upon which the FY18/19 Proposed amount is based.,
The FY18/19 Budget, as proposed, includes a net increase (CPI-U +Merit) for all non -
bargaining unit employees, including police Sergeants, of $69,046 (Column H, Rows 7 + 8)
from the FY17/18 Estimated amount. Of note, the FY18/19 Proposed amount for non -
bargaining employees and police sergeants ($4,345,773 - Column G, Rows 7 + 8) is an
increase of only $92,489 (2.2%) from the FY17/18 Budget amount of $4,253,284 (Column E
- Rows, 7 + 8).
Bargaining Unit Employees
Unlike non -bargaining employees, bargaining unit employee wages are not based on merit
or -the CPI-U. Rather, increases for IUOE 150 (Public Works, Parks), FOP Unit 1 (Patrol) and
13
FOP Unit 2 (Dispatchers, Records Clerks, CSOs) are based on step increases included in their
respective collective bargaining unit agreements and negotiated "Cost of Living
Adjustments" (COLA). As such, the percentages identified for bargaining unit wages are the
result of approved contractual agreements. Significant increases (such as FOP Unit 2) are
the result of an increased number of employees or in the transfer of employees from one
operating division to another (such as Public Works - Streets and Water, Sewer,. Utility).
Whether bargaining ornon-bargaining, the dollar amounts shown on this sheet are included
in the "4010 Salaries" line items of the operating department budgets as presented below.
ANALYSIS -GENERAL FUND OPERATING DEPARTMENTS:
Please reference the attached operating department spreadsheets for the following
discussion.
General Fund Operating Departments include personnel, contractual, supplies and other
operating expenses for the following departments - Administration (100.01), Elected
Officials (100.02), Community Development (100.03), Finance (100.04), Human Resources
(100.05), Economic Development (100.06), Police Commission (100.21), Police (100.22),
Police Dispatch (100.23), Public Works -Administration (100.30), Public Works -Streets
(100.33), and Parks and Recreation (100.41). These expenditures have already been
summarized, in total, as part of the previous discussion of General Fund Revenues and
Expenditures. The following narrative will focus on identifying the major points of each
operating department. Note, the Budget Variance $ (Column K) and Budget Variance %
(Column L) are based on a budget -to -proposed comparison from the FY17/18 Budgeted
amount to the FY18/19 Proposed amount.
General Administration (100.01)
Overall, the Administration operating budget is proposed to decrease by $512,931 or
35.62% in FY18/19 (Column K, Row 48). As identified earlier, the reason for this significant
decrease is the result of the formation of separate budgets for the Human Resources and
Economic Development functions and the transfer of all related costs into those budget
accounts.
Salary/Benefit costs are identified to decrease by a net of $367,369 or 51.6% and Health
Insurance expenditures are proposed to decrease by $41,663, or 39.6%.
Contractual Services expenditures -which includes the mosquito abatement program,
participation in the countywide Dial -A -Ride program, and building maintenance for the
municipal center are identified for a net decrease of $107,810 (23.29%) due to a decrease in
the amount of funding that the City pays for public transportation services as part of the Dial -
A -Ride Program in the Contractual line item (Row 21), and reclassifying expenses for
Telephone Costs (Line 24) to the Information Technology Budget.
Corporate Legal Fees (Row 22) include the City Attorney, Traffic Attorney and Collective
Bargaining representation and are identified to decrease $25,000 in FY18/19.
Supplies expenditures are proposed to increase by $8,250 (Column IN,, Row 39) due to
increased garbage sticker purchases and Other expenditures - which includes
Administrative Expenses and internal transfers for Risk Management and Information
Technology - is proposed to decrease by $4,339 (Column K, Row 45).
Elected Officials (100.02)
The Elected Officials budget is proposed for an $807 decrease, or 0.8%, based on transferring
telephone costs to the Information Technology budget (Column K, Row 37).
Community Development (100.03)
The Community Development budget is proposed at a decrease of $61,365, or 7.21%
(Column K, Row 44).
Salary/Benefit costs are budgeted to decrease by $40,618 (5.66%), including decreases in
Health, Life and Dental Insurance. Contractual Services are identified to decrease by $10,800
(20.87%). Approximately 75% of property maintenance costs are recovered through liens.
Supplies will increase by $250 (3.03%), while the internal transfer for Information
Technology will decrease by $8,647. Most of the decreases within this department are shifts
of employees and expenses to the Economic Development Department as some costs were
shared in previous budgets.
Finance (100.04)
Salary/Benefit costs are anticipated to decrease by $100,971(24.8%) due to reclassifying an
employee from the Parks Department and an office employee going to full-time status,
Contractual costs decrease by $2,300, and Supplies remain flat.
Human Resources (100.05)
All Salary/Benefit costs for the Human Resource Director have been reclassified to the
Human Resources budget as well as expenses for Wellness, Medical Services, and Training.
Economic Development (100.06)
Salary/Benefit costs for the Director of Economic Development were reclassified from the
General Administration budget, the Economic Development Coordinator was reclassified
from Community Development, and the Economic Development Assistant was reclassified
from the Parks Department. Expenses were added for Zoning Maps and Comprehensive Plan
updates, and training/conferences/seminars and a portion of these expenses were
reclassified from the Community Development budget.
15
Police (100.22)
The Police budget is proposed at an overall increase of $320,509, or 3.45% from FY17/18.
While costs have been reduced in many line items, Salary/Benefit costs are identified to
increase by $321,961 due to adjustments to FOP bargaining unit salaries ($147,940), a
decrease to health insurance costs ($26,782) and, most significantly, the transfer for Police
Pension of $145,484. As discussed earlier Police Pension costs are determined by an actuary
retained by the Police Pension Board and are based on a number of factors, including wages,
investment rate, and age of the workforce. The City has committed annually to funding the
amount determined by the actuarial in order to meet a required deadline for full funding by
2030.
Dispatch Center (100.23)
FY18/19 represents the second full year of operation for the fully developed, and staffed,
dispatch center. The FY17/18 budget established the baseline budget for the dispatch center
moving forward. The proposed FY18/19 budget has been presented and approved by the
partners of the dispatch center. The total amount proposed for the dispatch center in
FY18/19 is $2,482,908. As a reminder, this amount is offset by more than $1.7 million as a
result of the partnerships with the City of Woodstock, City of Harvard and McHenry
Township Fire Protection District and through charges for dispatch services, paid by
customers of the dispatch center. These are reflected as General Fund Revenues and
included in Row 22 of the General Fund - Revenues, Expenditures and Fund Balance Summary
sheet.
Public Works Administration (100,30) '
The overall Public Works Administration budget is proposed to increase by $4,778 (1.07%)
primarily due Salaries/Benefits.
Public Works Streets (100.33)
The FY18/19 Public Works Streets budget is proposed to increase by a total of $16,058
(0.54%) from FY17/18. Salaries/Benefits are proposed to decrease by 18,041 due to the
IUOE Insurance premiums decreasing. Additionally, Contractual (Row 21) costs have been
increased to account for contract mowing, Street Lighting Costs (Row 27) have been
increased by $35,000 and Materials and Supplies costs are proposed lower due to lower
gasoline prices.
Parks and Recreation (100.41)
As a reminder, the Parks and Recreation budget encompasses not only personnel and other
operational costs of the Parks Maintenance Division, which includes bargaining unit
employees, but also all programming expenses related to the Recreation Division not
associated with the McHenry Recreation Center. Revenues from recreation programming,
reflected in General Fund Revenues, offset many of these costs.
16
As proposed in FY18/19, Salary/Benefit costs are identified to decrease by a total of $13,676
(0.93%); Contractual Services to increase by $5,997 (1.35%); Supplies to increase by
$12,300 (6.42%); and, Other costs to decrease by $951. The overall Parks and Recreation
budget is proposed at just 0.16% higher).
ANALYSIS - MCHENRY RECREATION CENTER:
Please reference the attached spreadsheet titled "Recreation Center -Fund Summary"
for the following discussion.
The McHenry Recreation Center officially opened on February 29, 2016 and, as such, the
FY17/18 Budgeted revenues and expenses were developed based on FY16/17 actuals and
on the business plan and best estimates available at that time. With more than 800
memberships sold prior to the opening date and more than 2,600 active memberships to
date, the McHenry Recreation Center has exceeded all expectations through its second full
year of operation. At the close of this fiscal year, it is estimated that the McHenry Recreation
Center will continue to generate sufficient revenues to pay all operational costs, provide for
the $135,756 transfer to the Debt Service Fund for the construction loan payment, and finish
the year with a $13,891 surplus. This surplus will go in to the Recreation Center Fund to pay
for future capital needs of the facility and/or any expansion recreation center expansion
efforts.
In summary, FY17/18 revenues are estimated to exceed the budgeted amount by $112,366
(Columns H and I, Row 30) and FY17/18 expenditures directly related to the operation of
the facility (Contractual Services and Supplies) are estimated at less than the budgeted
amounts.
In developing the FY18/19 Proposed revenue and expenditures budget, staff continues to
estimate revenues conservatively to account for any decreases in membership. However,
even accounting for this, revenues are proposed at $91,000 (15.13%) higher than FY17/18.
Expenditures for Salaries/Benefits, Contractual Services and Supplies are budgeted at a total
of $46,597 (8.6%) higher than FY17/18. This takes in to account a reassessment of staffing
and other operational needs now that the facility has been open for a full year.
Additionally, at the end of FY18/19, the Recreation Center Fund Balance is still identified to
be $287,395. This amount includes the expansion of the parking lot in FY17/18.
ANALYSIS -WATER AND SEWER FUND:
The Water and Sewer Fund is an enterprise fund -that is, a business -type fund utilized to
account for operations and activities that are financed and operated in a manner similar to a
private business enterprise, and where the cost of providing goods and services to the
general public on a continuing basis is expected to be recovered primarily through user
charges, including operating costs and capital improvement costs related to the maintenance
17
of the water and sewer utility systems. These fund the operations of the Water, Wastewater
and Utility Divisions in the Department of Public Works. The operating functions of these
three divisions are to provide a safe and reliable supply of high quality potable water and to
protect public health and the environment by treating sewage to meet stringent
environmental standards prior to discharge.
Of note, the Utty Division was established in FY15/16 combining existing Water and
Wastewater Division Maintenance Workers to specifically address utility system
maintenance needs more routinely. Prior to this, utility maintenance projects were
addressed by either the Water or Wastewater Division and often required coordination with
the other division to ensure adequate manpower. The creation of the Utility Division
established a more efficient methodology to handle utility maintenance projects. The
expenses for the Utility Division are split between the Water and Wastewater Divisions as
follows - approximately 63.7% of operating expenses are paid from the Water Division and
the remaining 36.3% are paid from the Wastewater Division. Capital expenses are charged
to the division that benefits from the maintenance project.
In general, water and sewer revenues are derived directly from water and sewer sales, base
charges, connection fees, and service penalties and should be sufficient to fund the operating
and capital costs for the Water, Wastewater and Utility Divisions. Importantly, water and
sewer revenues are driven by consumption and, as such, with a growing awareness of water
conservancy (which the City supports) and wetter than average summer months,
consumption has been relatively flat over the last two years.
Prior to FY15/16, water and sewer rates were adjusted annually based primarily on the
Consumer Price Index (CPI). Unfortunately, this CPI adjustment did not correlate to the
actual cost of operations for McHenry's Water and Wastewater Divisions and did not account
for the specific capital infrastructure needs of the municipality. This resulted in a shortfall
in water and sewer revenues and an inability to fund water and sewer capital projects of the
existing systems. To address this the City commissioned a water and sewer rate study that
was completed in FY13/14. The results of this analysis identified the need to adjust water
and sewer rates at that time and to annually review and adjust water and sewer rates based
on operational costs and implement water and sewer base fees to fund utility system capital
improvements.
The narrative that follows provides a snapshot of the status of the Water and Sewer Fund
and identifies operational and capital expenses.
Please reference the attached worksheets titled "Water and Sewer Fund Summary (Fund
510, Department 31 Water, Water and Sewer Fund Summary (Fund 510, Department 3Z
Sewer, and Water and Sewer Fund Summary (Fund 510, Department 35 Utility)"for the
following discussion,
Water and Sewer Fund Revenues. Expenditures and Capital
FY18/19 Water Division
FY18/19 Water Division operating expenditures are proposed at $2,271,953, an increase of
$111,864 from FY17/18. This increase is due to the funding of the Utility Division transfer
(again, the Utility Division is funded through contributions by water and wastewater).
Budgeted Operating Revenues for FY18/19 are short of budgeted operating expenditures by
$86,381. Rates will be addressed after the budget is approved and discussed with Council
before they need to be adjusted in August.
It is estimated that the existing $2 capital base charge will generate $125,000 in FY18/19 for
capital projects. In FY18/19 this amount, along with Water and Sewer Fund Balance, will be
used to fund the following water system capital projects identified in the Water and Sewer
Fund CIP - $225,000 for water meter replacement; $30,000 for Well Inspection/Maintenance
and Repair; and, $45,000 for the Water Division Motor Pool. No increase or decrease in the
base rate is recommended at this time.
FY18/19 Wastewater Division
FY18/19 Wastewater Division operating expenditures are projected at $3,215,573, a
decrease of $17,542 from FY17/18. This decrease is due partially to lower utility costs but
the funding of the Utility Division transfer was increased to cover proposed expenses (again,
the Utility Division is funded through contributions by water and wastewater). Proposed
operating revenues for FY18/19 are expected to exceed proposed operating expenses by
$34,145. Rates will be addressed after the budget is approved and discussed with Council
before they need to be adjusted in August.
It is estimated that the existing $4 capital base charge will generate $270,000 in FY18/19 for
capital projects. This amount, along with existing Water and Sewer Fund Balance, will be
used to fund the following water system capital projects identified in the Water and Sewer
Fund CIP - $40,000 for Willow Lift Station Pump Replacement; and, $65,000 for Wastewater
Division Motor Pool. No change in the base rate is being recommended at this time.
FY18/19 Utility Division
FY18/19 Utility Division operating expenditures are projected at $1,069,894, an increase of
$12,390 from FY17/18. As identified in the Water and Wastewater discussions above, the
Utility Division is funded through transfers from the Water and Wastewater Division
revenues. If in one year the transfers from the Water and Wastewater Division exceed
expenses within the department, adjustments are made in following fiscal years. This will
result in lower operating budgets for the Water and Wastewater Divisions.
19
ANALYSIS - CAPITAL IMPROVEMENT/CAPITAL EQUIPMENT PROJECTS:
The annual development of the five-year Capital Improvement Plan is an exercise that is
undertaken, primarily, to ensure the City Administration and City Council are able to identify
the capital improvement and capital equipment needs of the municipality. As noted in the
CIP document, the identification of projects or equipment does not mean that they will be
funded at any point in the future. In fact, it is not reasonable to believe that a majority of the
$SS million in projects identified in the FY18/19 - FY22/23 Capital Improvement Plan can
be completed due to the limited capital improvement and capital equipment funding
available.
As identified through the January 29, 2018 Committee of the Whole Meeting, February 19,
2018 City Council Meeting, and subsequent discussions, the following capital projects have
been identified for implementation and funding through the FY18/19 General Fund budget:
Capital Improvements Fund Projects
1. Pearl Street/Lincoln Road Improvements $ 2,367,500
2. Ringwood Road Improvements $ 264,500
3. Curran Road S-Curve Safety Improvements $ 35,000
4. Bull Valley Bike path Extension - Phase 1 Engineering $ 37,500
5. Pavement Maintenance (Reclamite) $ 50.000
TOTAL $2,754,500*
*Amount includes $773,000 from the Capital Improvements Fund with the remainder being
from various other funding sources - Township, State, Federal.
General Fund Balance Projects
1. Timothy/Clover Water Main Replacement
2. Green Street Bridge Rehabilitation
3. Lakeland Park Drainage Improvements
TOTAL
$ 345,000
$ 451,500
$ 610,000
$1,406,500
The total dollar amount of projects proposed for funding in all or part by the General
Fund in FY18/19 is $4,161,000.
Additional capital projects are included in the Information Technology Fund, Developer
Donations Fund, Tourism Fund, and TIF Fund budgets. Water and Sewer Fund capital
improvement and capital equipment projects will be included as part of the review of this
fund below.
PERSONNEL -COMPENSATION STUDY AND NEW POSITION REQUESTS:
Compensation Study
In FY17/18 the City Council authorized the completion of a wage and compensation study
for non -bargaining unit employees in an effort to identify any wage discrepancies that have
been created over time, beginning with the economic recession of 2007/2008 and, important
for future hiring decisions, that the compensation ranges for positions are competitive in the
market. In summary, the result of this study identified an estimated $70,000 in wage
adjustments for existing employees. The Finance and Personnel Committee is currently
reviewing the results of the study and, as such, no adjustments have been included in this
budget request. However, should the Finance and Personnel Committee and City Council
concur with the results of the study, the net General Fund Revenue over Expenditure amount
of $101,240 is sufficient to be able to implement the recommended wage adjustments.
New Position Requests
In FY16/17 the City Administration conducted a Staffing Needs Assessment of all municipal
departments. This plan, similar to the S-year Capital Improvement Program (CIP), is a
snapshot of staffing needs, including skill requirements, for existing and new employees;
succession planning; position evaluation and revision upon vacancy; and, the identification
of new or expanded part-time and full-time employees that may be needed to fulfill the
service needs of the community during the next S-year period. The full results of this
exercise are included in the FY17/18 budget document. In preparing the FY18/19 Budget,
this information was reviewed with Department Directors and the following positions have
been identified as critical in increasing the efficiency and productiveness of the related
functions. NOTE: These positions have NOT been included in the FY18/19 General
Fund Budget nor, based on the estimated total costs of wages and benefits for the
positions, are there sufficient financial resources to be able to add these positions to
the FY18/19 Budget without making the budget "unbalanced." Funding would be
required from the General Fund Balance and action will only be taken at the direction
of Council.
1. City Planner -Salary +Benefits Estimate = $100,166
Planning responsibilities, which include the development of all supplemental
information for the Planning and Zoning Commission as well as managing and
updating the various municipal planning documents, are currently handled by the
Economic Development Director. With the need to focus more effort on economic
development activities, it is vital that the planning responsibilities be transferred
from the Economic Development Director to a City Planner. No other current
employee is qualified to assume these responsibilities.
2. Human Resources and Finance Assistant -Salary +Benefits = $74,694
With the opening of the McHenry Recreation Center and expansion of the Police
Dispatch Center the number of full-time and permanent part-time employees has
grown to over 150. This number grows to approximately 330 in the summer season.
Currently, the City employs a full-time Human Resources Director however, this
21
individual does not have a dedicated administrative assistant to help in handling the
mandatory employment documentation for employees, benefits, recruitment and
hiring processes, wellness program, and employee training. As a result, the Human
Resources Director is often engaging in responsive, instead of proactive, human
resource activities. In addition, there are currently no "backups" for the variety of
finance responsibilities - accounts payable, accounts receivable, payroll, utility
billing. When an individual is absent, another Finance Department employee must
take on the absent employee's daily responsibilities in addition to their own. This
position would learn the responsibilities of the Finance Department and be able to
provide temporary backup when needed.
3. Parks Maintenance Worker -Salary +Benefits = $78,623
As is often mentioned, the City of McHenry has more than 650 acres of park space
within 38 park sites. While much of the mowing will be contracted beginning in
FY18/19, there is still a need for the addition of an additional full time Parks
Maintenance Work to be able to address the variety of functions, including downtown
maintenance, carried out by the Parks Division of the Parks and Recreation
Department,
SUMMARY OF NEXT STEPS
Based on discussion and input of the Finance and Personnel Committee on March 12�, this
information will be updated and the results used to complete the remaining municipal funds.
All of this will then be transferred to the City Council on March 19th with a discussion of the
remaining funds at the March 26th Finance and Personnel Committee meeting. From that
point, the financial information will be combined with all budget narrative information into
a Final Proposed FY18/19 Budget. This document will be transmitted to Council on April 2na
to be followed by a Committee of the Whole Meeting for the purpose of conducting a full
review of the budget document on April 9th.
The budget discussions at the Finance and Personnel Committee and Committee of the
Whole meetings will be the same format as used for the Capital Improvement Program
discussion - roundtable, information projected on a screen, with Department Directors
present to answer any questions.
22
Derik Morefield, City Administrator
McHenry Municipal Center
333 Green Street
McHenry, Illinois 60050
Phone: (815) 363-2100
Fax: (815) 363-2119
dmorefield@ci.mchenry.il.us
FINANCE AND PERSONNEL COMMITTEE
AGENDA SUPPLEMENT
DATE: March 26, 2018
TO: Finance and Personnel Committee
City Council
FROM: Derik Morefield, City Administrator
Carolyn Lynch, Finance Director
RE: Transmittal of Proposed FY18/19 Budget Information for All Funds
ATT: General Fund -Summary of Revenues, Expenditures and Fund Balance
(Revised)
Fund Summary Sheets for All Funds
AGENDA ITEM SUMMARY:
The purpose of this agenda item is for the Finance and Personnel Committee to complete its
review of the FY18/19 Budget and recommend approval of the funding to the full City
Council for consideration at the April 11, 2018 Committee of the Whole City Council meeting.
BACKGROUND/ANALYSIS:
The Finance and Personnel Committee met on March 12, 2018 to review the following
information:
• General Fund Revenues, Expenditures and Fund Balance (FY11/12-FY16/17 Actuals,
FY17/18 Budget, FY17/18 Estimated, FY18/19 Proposed);
• Personnel Summary of Wages (All Funds);
• Proposed General Fund Expenditures (Administration, Elected Officials, Community
Development, Finance, Human Resources, Economic Development, Police, Dispatch
Center, Public Works - Administration, Public Works - Streets, Parks and
Recreation);
• Recreation Center budget;
• Identified Capital Improvement Projects
• Water and Sewer Fund expenditures
operations and capital projects;
• Compensation Study impacts; and
• Personnel Requests
related to Water, Sewer, Utility Division
As a result of input provided by the Finance and Personnel Committee on March 12th the
following amendments or new/revised information is being provided for additional review.
1. General Fund - Summary of Revenues, Expenditures and Fund Balance
Adjustments were made to the Fund Summary Pages for Administration and Streets
Departments to include expenses that were missed or added during the previous
discussion (identified below). These adjustments then carryover to this summary
page. Adjustments were made to health insurance expenses for all departments for
the Health Savings Account insurance type. The insurance company incorrectly
quoted the price of this insurance type. The personnel cost savings for the General
Fund are $39,675. Based on these changes, the identified
revenues/expenditures amount proposed for FY18/19 has increased from
$101,240 to $119,415. This number is not specifically identified in on the
spreadsheet because the General Fund Balance commitment for projects has
now been included in Column K, Row 32.
2. Administration -Fund Summary (Fund 100, Department 01)
This fund sheet has been amended to reflect capital items that will be paid through
the General Fund Fund Balance (Column J, Lines 44 and 45).
These projects have been identified as:
Timothy/Clover Water Main Replacement $345,000
Green Street Bridge Rehabilitation 451,500
Lakeland Park Drainage Improvements 610,000
3. Streets -Fund Summary (Fund 100, Departments 33)
This fund sheet has been amended to reflect accurate estimated expenditures for
FY17/18 as well as FY18/19 budget corrections for two accounts. The FY17/18
Estimated Line for Contractual (5110 Column I, Line 21) was decreased by $14,235
due to expenses moved to the Capital Improvements Fund for the Green Street Bridge
Repair. The line item for Gasoline & Oil (6250) had to be increased for the FY17/18
Estimated Actuals as well as the FY18/19 Budget after taking an additional look at
expenses year-to-date. The estimated actual (Column I, Line 33) was increased by
$22,883 and the budget was increased $20,000 (Column J, Line 33). A small
adjustment was made to the FY18/19 budget for Safety Equipment (6290 Column J,
Line 35) for $1,500 as this was inadvertently left out during the previous discussion.
4. Capital Improvement/Capital Equipment Projects
The following Capital Improvement Projects were identified for inclusion in the
budget with the identified funding source:
2
Pearl Street/Lincoln Road Improvements $21367,500 (GF/MFT/STP/ I wnshp)
Ringwood Road Improvements 264,500 (GF/STP)
Curran Road S-Curve 35,000 (GF/HSIP)
Bull Valley Bike Path Extension - Phase I Eng 37,500 (GF)
Pavement Maintenance (Reclamite) 50,000 (GF)
Police Vehicle Computer Repl Program 23,800 (IT)
Rep In -House Video Server & Add Sec Cameras 26,000 (IT)
Wireless Access Points Replacement 12,000 (IT)
Laserfiche Document Management System 38,000 (IT)
City Gateway Signage Replacement 25,000 (Dev Donation)
Parks Washroom Facilities 400,000 (Dev Donation)
Petersen Park Improvements 50,000 (Dev Donation)
ADA Park Improvements 20,000 (Dev Donation)
Recreation Center Parking Lot 545,000 (Rec Cntr FB)
5. Water and Sewer -Fund Summary (Fund 510, Department 31,32,35)
As stated above, the Health Savings Account insurance type was budgeted for
incorrectly, the personnel cost savings for the Water/Sewer Fund is $5,717.
6. Capital Improvement/Capital Equipment Projects Water/Sewer Fund
Water Meter Replacement Program $225,000 (Water)
Well Inspection/Maintenance & Repair 30,000 (Water)
Motor Pool Replacement 45,000 (Water)
Willow Lift Station Pump Replacement 40,000 (Sewer)
Motor Pool Replacement 65,000 (Sewer)
Pearl Street/Lincoln Road Improvements 380,000 (Utility)
Recreation Center - Parking Lot Expansion 70,000 (Utility)
Green Street Bridge Rehabilitation 48,500 (Utility)
Water Main Replacement (Timothy/Clover) 830,000 (Utility)
7. Personnel Request
The Finance and Personnel Committee reviewed a list of personnel requests
(identified but not included in the budget) however, no recommendation regarding
these requests was made at the committee level. The requests will be included for
discussion as part of the overall budget review at the Council level.
The estimated monetary impact of the recently completed Compensation Study was
also presented at the committee level. The full results of the study are to be reviewed
by the Finance and Personnel Committee on April 2nd and additional discussion on
this topic will be included as part of the overall budget review at the Council level.
Based on the review of this information by the Finance and Personnel Committee, the
following funds could be completed and are now being transmitted to the committee for
review at the March 26th Finance and Personnel Committee meeting.
3
• Tourism - Fund Summary (Fund 200, Department 00)
The Tourism Fund is used for the purpose of financing tourism through promotion of
the City. It is derived from a 5% occupancy tax on motel and hotel receipts.
• Pageant -Fund Summary (Fund 205, Department 00)
The purpose of the Pageant Fund is to account for revenues and expenditures used to
conduct the annual Miss McHenry Pageant.
• Band -Fund Summary (Fund 210, Department 00)
The purpose of the Band Fund is to finance and account for expenditures incurred in
the provision of summer concerts to promote culture and recreation to the
community.
• Civil Defense -Fund Summary (Fund 220, Department 00)
The Civil Defense Fund is used to fund and account for activities related to the training
of personnel and the purchase and maintenance of equipment to protect and defend
the City from natural disasters or man-made environmental disasters through early
warning and public notification systems.
• Alarm Board -Fund Summary (Fund 225, Department 00)
The purpose of this fund is to pay for the maintenance of radios, as well as the annual
maintenance of the head -end equipment, in the City's dispatch center. Revenues are
derived from the monitoring of business fire alarms, which are directly connected to
the dispatch center.
• Audit -Fund Summary (Fund 230, Department 00)
The Audit Fund accounts for expenses incurred to complete the annual financial audit
of the City.
• Annexation -Fund Summary (Fund 260, Department 00)
This fund tracks funds received from negotiated annexation agreements that are
intended to be used for improvements to infrastructure or City facilities.
• Motor Fuel Tax -Fund Summary (Fund 270, Department 00)
The Motor Fuel Tax (MFT) Fund is to provide dedicated revenues from taxes on
gasoline and diesel sales primarily to fund road maintenance and improvements.
• Developer Donation -Fund Summary (Fund 280, Department 00 & 411
The purpose of this fund is to account for donations collected from developers on
behalf of the primary and secondary school districts, fire protection district, and the
City's park system.
• Tax Increment Finance -Fund Summary (Fund 290, Department 00)
The Tax Increment Finance (TIF) Fund is utilized to capture the tax increment on
property taxes generated through private investment within the downtown TIF
District. These funds are then reinvested into this area to undertake public
improvements and/or as incentivization to spur additional private investment.
• Debt Service -Fund Summary (Fund 300, Department 00)
The Debt Service Fund accounts for bonded indebtedness incurred by the City's
General Fund, including bond and interest payments.
• Lakewood SSA#4 -Fund Summary (Fund 424, Department 00)
The purpose of SSA#4 Fund is to account for revenues and expenses associated with
annual debt service for the sewer project in the Lakewood Road Subdivisions.
• Capital Improvements -Fund Summary (Fund 440, Department 00)
The expenditures in this fund are to be used for retiring debt service and for capital
infrastructure expenditures. One-time revenues should be placed in this fund.
However, the City will plan appropriately and maintain a sufficient reserve in order
to meet the long-term capital planning, projected cash flow requirements, and
infrastructure needs of the community.
• Local Street Improvements -Fund Summary (Fund 441, Department 00)
• Capital Equipment -Fund Summary (Fund 450, Department 00)
Similar to the Capital Improvements Fund, the expenditures in this fund are to be
used for capital equipment expenditures.
• Capital Development -Fund Summary (Fund 550)
The expenditures in this fund are to be used for retiring debt service and for capital
expenditures.
• Utility Improvements -Fund Summary (580)
The expenditures in this fund are to be used for capital infrastructure expenditures.
One-time revenues should be placed in this fund. However, the City will plan
appropriately and maintain a sufficient reserve in order to meet the long-term capital
planning, projected cash flow requirements, and infrastructure needs of the
community.
• Marina Operations -Fund Summary (Fund 590)
This fund accounts for rental income and maintenance expenditures related to the
City- owned marina.
• Employee Insurance -Fund Summary (Fund 600)
The purpose of this fund is to finance and account for expenditures incurred to
provide insurance benefits to employees.
5
• Risk Management - Fund Summary (Fund 610)
The Risk Management Fund accounts for all activity related to risk management and
insurance costs (other than employee health insurance) including loss control, loss
prevention, risk transfer and risk assessment.
• Employee Flex -Fund Summary (Fund 700)
This fund accounts for employee pre-tax medical spending accounts that are offered
as a benefit to city employees.
• Developmental Escrow -Fund Summary (Fund 720)
The purpose of this fund is to segregate developer funds held by the City to ensure
the completion of specific public improvements such as sidewalks and traffic signals.
• Retained Personnel -Fund Summary (Fund 740)
This fund is used to account for funds collected as reimbursement and expended for
professional and technical services used to assist or advise the City in connection with
land development.
• Revolving Loan -Fund Summary (Fund 750)
The Revolving Loan Fund accounts for activity in the Revolving Loan Program, a low
interest program for businesses and industry with the goal of job creation.
• Police Pension -Fund Summary (Fund 760)
The Police Pension Fund accounts for retirement benefits for retired Police Officers
and their beneficiaries
through employer and employee contributions and
Staff will be available at the March 26, 2018 Finance and Personnel Meeting to answer
questions WaL the committee may have on this amended or new information.
RECOMMENDATION:
At the conclusion of the March 26th Finance and Personnel Committee meeting, staff is
requesting that the Committee consider a motion to forward the proposed FY18/19
fund budgets, as amended and with the inclusion of all supplemental information, for
consideration by the City Council at the April 11, 2018 Committee of the Whole City
Council Meeting.
C�
FINANCE AND PERSONNEL COMMITTEE
Monday, March 12, 2018
Municipal Center Classroom, 5*30 PM
1. Call to Order: The meeting was called to order at 5:30 pm.
2. Roll Call: Chairman Alderman Curry, Alderman Schaefer, and Alderman Mihevc.
Also in attendance Alderman Santi, City Administrator Morefield, Director of Finance
Lynch, Human Resources Manager Campanella, Director of Community Development
Polerecky, Director of Public Works Schmitt, Chief of Police Birk, Director of Parks and
Recreation Hobson, Deputy Chief Walsh, Street Division Superintendent Schweda,
Wastewater Division Superintendent Ruzicka, Water Division Superintendent Palmer,
and Utility Division Superintendent Wirch, and Deputy Clerk Geraghty.
3. Public Comment:
None.
4. Motion to approve the February 5, 2018 Finance and Personnel Committee Meeting
Report.
Alderman Schaefer made a motion, second by Alderman Mihevc, to approve the
February 5, 2018 Finance and Personnel Committee meeting report.
Voting Aye: Schaefer, Mihevc, Curry
Motion carried.
5. Motion to approve the February 19, 2018 Special Finance and Personnel Committee
Meeting Report.
Alderman Schaefer made a motion, second by Alderman Mihevc to approve the February
19, 2018 Special Finance and Personnel Committee meeting report.
Voting Aye: Schaefer, Mihevc, Curry
Motion carried.
6. Discussion on Proposed FY 18/19 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).
Discussion highlights:
City Administrator Morefield presented the proposed FY 18/19 Budget and announced
Department Directors were present to answer questions regarding their proposed budget
requests. The discussion did not include a review of every fund that comprises the annual
budget however, the funds include operational and personnel costs and serve as a basis
for determining how the remaining municipal fund budget are developed.
Finance and Personnel Committee
Page 2
March 12, 2018
FY 18/19 proposed General Fund Revenues and Expenditures reflect total revenues of
$22,309,740, which is an increase of $749,423 or 2.2% from FY 17/18.
FY 18/19 total proposed operating expenditures of 522,188.850 represents an increase of
$374,206 or 1.72% less capital from the FY 17/18 budget amount for a net difference of
revenues over expenditures of $101,240. City Administrator Morefield announced the
proposed General Fund Operating Budget was presented is balanced.
Chairman Curry asked if we know why we are receiving less state income tax. Director
Lynch answered the decrease was due to the reduction in LGDF.
Chairman Curry inquired if Townships assesses the Road and Bridge Levy every year.
Director Lynch stated Townships could reduce the amount to $0. The city is covered by
two townships and only one has reduced its levy every year. City Administrator
Morefield added there is nothing the city can do to stop Townships from decreasing the
levy.
Revenues:
City Administrator Morefield reported the total estimated revenue proposed for FY 18/19
increased by $479,423, or 2.20% from the actual amount budgeted in FY 17/18. The
most significant increases include $523,001 or 7.29% in sales tax receipts and $55,000
increase in video gaming receipts. Noteworthy reasons for decreases in revenue were due
to State Income Tax reduction of $140,000 or 5.51%, and $29,000 or 7.37% reduction in
fines and forfeiture receipts.
Property, Sales, and State Income Tax totals are 77.1 % of General Fund Revenues. In
FY 17/18, the budget amount was $76.7 and this year the budget is proposed at $77.1.
The main contributor to the increase is proposed increases in sales tax amounts.
Chairman Curry asked why each year it seems we show $4.9M but always come in at
$5.11VI. Director Lynch said the city does not levy the road and bridge. The levy
presented to the Council is the city's levy; we add approximately $250,000 for the two
road districts including the total we will receive in property taxes. This year, Nunda
Township took away approximately $40,000 and the city's levy was reduced by 3%.
Expenditures:
General Fund expenditures include all personnel, contractual, supply, capital outlay
Internal Fund Transfers and Other expenses related to the functions of the city with the
exception of Water/Sewer, Recreation Center, and Capital Improvement Projects funds.
Total FY 17/18 expenditures were estimated at $10,000 higher than what was budgeted
and covered by budget amendments approved throughout the year.
Alderman Schaefer asked about the variance between Column H and I in Personnel and
City Administrator Morefield answered it was due to the Dispatch Center. Row 22
Reimbursements reflects the amounts received for personnel. Chief Birk noted the city
went from nine full time dispatchers to 21. The new employees were phased in with the
first five hired in December 2016 and the remainder hired after May 2017.
Finance and Personnel Committee
Page 3
March 12, 2018
Proposed expenditures for FY 18/19 are $374,206, an increase of 1.7% from FY 17/18
budget amount. The reasons for the increase were personnel costs related to salaries for
employees covered by collective bargaining units, and Police Pension costs, which are
proposed to increase by $145,484.
Overall costs for employee health insurance decreased by $152,100 due to changes in
Local 150 Union insurance plan and the new employee health insurance consortium.
Chairman Curry stated the presentation of the budget has improved over the years
however, we still tend to look at budget to budget instead of budget to actual.
General Fund Balance:
The budgeted beginning FY 17/18 Fund Balance was $7,303,780. The ending fund
balance was estimated to be $7,305,053. There was not much revenue over expenditures
last year.
The estimated beginning FY 18/19 Fund Balance is proposed at $7,283,317, with an
assigned for capital amount of $21,736. We are estimated to end the year at $7,557,987,
with an assigned for capital amount of $274,670.
City Administrator Morefield stated staff continues to be conservative when estimating
revenues and approving expenditures. Director Lynch added this amount is what would
be utilized for FY 18/19 capital projects.
FY 18/19 Proposed Fund Balance is $7,659,2271ess unassigned 120 days $7,450,000 and
$209,227 for assigned capital.
Personnel Summary of Wages- All Funds:
Spreadsheets were distributed to the Committee depicting a summary of wages for each
department that identified non -bargaining and bargaining employees separately,
including the FY 17/18 budgeted wages, estimated wages, proposed wages, and monetary
variance from FY 17/18 and FY 18/19.
Significant increases and decreases in dollar amounts and percentages as identified are
the result of employee reassignments, reclassifications, or increases and decreases.
Separate budget accounts for Human Resources and Economic Development were
created for FY 18/19 and salaries for these positions were moved into corresponding
budgets.
Alderman Schaefer asked if this was the first time, the Economic Development
Department was a separate budget and City Administrator Morefield answered yes.
Chairman Curry noted the Finance and Park Departments exchanged an employee and
one budget shows an increase of $56,000 and the other shows less. Director Lynch noted
one employee was moved from parks and a part time employee became a full time
employee. Director Hobson noted that his salary was moved from Administration to half
Parks and Recreation and half Recreation Fund.
Finance and Personnel Committee
Page 4
March 12, 2018
Chairman Curry inquired about the variances in wages for police non -bargaining and City
Administrator Morefield noted adjustments were made for the new Chief, Deputy Chief,
and Commander.
General Fund Operating Departments:
General Fund Operating Departments include personnel, contractual, supplies and other
operating expenses for Administration, Elected Officials, Community Development,
Finance, Human Resources, Economic Development, Police Commission, Police, Police
Dispatch, Public Works Administration, Public Works streets, and parks and Recreation.
Chairman Curry noted that many budget line items reflect $0 for expenditures yet we
continue to re -budget an expense for this line item each year and asked if staff reviews
the actual expenditures. For example, the training budget for Elected Officials and
questioned if the repeated line items are necessary.
Alderman Schaefer stated he is aware that in the past, the city decreased Elected Officials
training and he is not certain that all Elected Officials are aware that they could attend
government training functions such as the annual IML Conference in Chicago. At some
point, if three or more Alderman decided to attend the IML Conference, this budget
would be spent.
City Administrator Morefield stated staff reviews each line item carefully.
Director Schmitt noted Public Works has had success in attaining scholarships for
training conferences, however at the time the budget is approved, it is not known if
scholarships would be awarded. He also stated that he is concerned about lowering the
training budget because Water/Sewer and Wastewater training is open to employees to
achieve certifications.
Director Polerecky noted inspectors are required to achieve a certain amount of CEU's
each year. If free training courses are not available, we need to have those funds
available in the budget to maintain required certifications and the amount can vary from
each to year.
Alderman Schaefer noted in his opinion there is not a lot of fluff in the budget when you
consider that 80% is dedicated to salary and benefits.
Alderman Schaefer asked what the city's required contribution to IMRF was and Director
Lynch answered 12.5%, and employees pay 4.5%.
Alderman Santi joined the meeting at 6:25 PM.
Chairman Curry asked why health insurance costs decreased in all departments except
Police. Chief Birk stated the number of fulltime employees in the department fluctuates
from time to time due to retirements, resignations, and changes in coverages for
marriages, births, etc.
Finance and Personnel Conunittee
Page 5
March 12, 2018
In Public Works Streets, line 21 Contractual, Chairman Curry noted the write up
indicates an increase for mowing however, versus what we are actually spending this year
it is actually a significant decrease. Director Schmitt said in contractual, we had about
$14,000 charged for the Green Street Bridge design, which should have been charged to
Capital not Contractual. Also for the Lakeland Park Drainage project, we had about
$10,000 out of Contractual
City Administrator Morefield reported the FY 17/18 budgeted revenues and expenses
were developed for the McHenry Recreation Center based on FY 16/17 actuals and on
the business plan and best estimates available at that time. With more than 800
memberships sold prior to the opening date in February 2016, and more than 2,600 active
memberships to date, the McHenry Recreation Center has exceeded all expectations
through its second full year of operation. It is estimated that the Recreation Center will
continue to generate sufficient revenues to pay all operational costs, provide for the
$135,756 transfer to the Debt Service Fund for the construction loan payment, and finish
the year with a $13,891 surplus.
Chairman Curry asked when the debt service would end and Director Lynch stated in
0350
Chairman Curry asked if the parking lot expansion was included in the FY 18/19 budget
and Director Hobson answered yes, with a portion charged to the Water/Sewer Fund for
extension of the city water main.
Capital Improvement/CapitalEgmpment Projects:
As identified in past discussions, the capital projects were identified for implementation
and funding through the FY 18/19 General Fund budget for a total of $2,754,500, which
includes $773,000 from the Capital Improvements Fund with the remainder coming from
various other funding sources such as Township, State and Federal funding.
Compensation Study and New Position Requests:
City Administrator Morefield reported that the Finance and Personnel Committee is
currently reviewing the results of the Compensation Study and at this time, new
adjustments have been included in this budget request. However should the City Council
concur with the results of the study, the net General Fund Revenue over Expenditure
amount of $101,240 is sufficient to implement the recommended wage adjustments of
$64,460.
New Positon Requests include:
City Planner with salary and benefits = $100,166.
Human Resources and Finance Assistant with salary and benefits = $74,6946
Parks Maintenance Worker with salary and benefits = $78,623.
Chairman Curry announced this study would be discussed at the April 2"d Finance and
Personnel Committee and suggested the committee ask questions or provide comments to
staff prior to the meeting.
Finance and Personnel Committee
Page 6
March 12, 2018
City Administrator TvIorefield concluded that based on input from the - Finance and
Personnel Committee, this information would be updated and the results used to complete
the remaining municipal funds. All of this information will be transmitted to the Council
on March 19 with a discussion of the remaining funds at the March 26 Finance and
Personnel Committee meeting. From that point, the financial information will be
combined with all budget narrative information into a final proposed FY 18/19 Annual
Budget document. This document will be transmitted to the Council on April 2 followed
by a Committee of the Whole meeting rescheduled to April 11 at 6:30 PM.
Alderman Schaefer confirmed that the proposed salary ranges would not affect the FY
18/19 budget.
Chairman Curry stated that at the last Finance and Personnel Committee meeting, the
Vehicle Sticker program was discussed noting that the $131,000 in estimated revenue
from the program is included in the proposed FY 18/19. If we were to proceed and
eliminate the program, the proposed budget would be less $131,000 and suggested that
the Committee revisit the program on April 2 again and possibly reconsider the program
prior to proceeding to the full Council
7. Motion to Adjourn:
Alderman Mihevc made a motion, second by Alderman Schaefer, to adjourn the meeting.
Voting Aye. Mihevc, Schaefer, Curry
Motion carried.
The meeting adjourned at 7:03 pm.
Respectfully submitted,
Marci Geraghty, Executive Assistant/Deputy City Clerk
Reviewed and approved this � day of � 2018.
FINANCE AND PERSONNEL COMMITTEE
Monday, March 26, 2018
Municipal Center Classroom, 5:30 PM
1. Call to Order: The meeting was called to order at 5:30 prn.
2. Roll Call: Chairman Alderman Curry, Alderman Schaefer. Absent: Alderman Mihevca
Also in attendance Director of Finance Lynch and Deputy Clerk Geraghty.
3. Public Comment:
None,
4. Review of Fiscal Year 2018/19 Budget and recommendation to approve funding to
the full city Council at the April 11, 2018 Committee of the Whole meeting.
Chairman Curry asked Director Lynch to present the agenda item to the Committee.
Discussion highlights:
Director Lynch provided a brief summary of funds previously reviewed by the
Committee and a review of the remaining funds. She announced that staff is seeking a
motion to forward the proposed FY 18/19 Annual Budget to the full City Council for
consideration on April 11.
Director Lynch summarized the following revisions made to the General Fund proposed
budget for FY 18/19 made since the March 12 meeting.
• The city's insurance company proposed rate for one of our coverages was
incorrect, resulting in a decrease of $40,000 in General Fund operating expenses.
Revenues over expenditures are now $119,000.
• All Capital Improvements Projects were added to the budget summary sheet on
line 33, that are paid from the General Fund Balance; Timothy/Clover Water
Main Replacement - $345,000; Green Street Bridge Rehabilitation - $451,500;
and Lakeland Park Drainage Improvements - $610,0004, for a total of just over
$1.4M.
• $14,000 for the Green Street Bridge Rehab project was moved out of the FY
17/18 estimated actuals for Street Division.
• Estimated actuals for Gasoline were revised, as the projected decrease in fuel did
not occur due to the amount of snow events this past season. The FY 18/19
budget amount was increased to the amount originally budgeted in FY 17/18.
• A total of $1,500 was added to the Street Division for safety equipment. This
amount had been inadvertently omitted from the proposed budget.
Finance and Personnel Committee
Page 2
March 26, 2018
Discussion on Other Funds:
Director Lynch reported the Capital projects recommended by Council were added to the
funds presented this evening.
As stated earlier, due to changes in the Local 150 Union Insurance, personnel costs
savings of $5,717 were included in the Water/Sewer Fund.
Alderman Schaefer noted that capital projects such as the water main replacement on
Timothy and Clover show $830,000 from the Utility Fund but the total project from
General Fund is $345,000, Director Lynch answered the General Fund amount is to pay
for the road only. Chairman Curry noted that a small portion of the Green Street Bridge
project is also paid from the Water/Sewer Fund Fund as well as the Recreation Center
parking lot expansion.
Director Lynch reported no personnel requests or Compensation Study wage
considerations were included in the budget.
Alderman Schaefer asked if a recommendation on the study was ever brought before the
Council and Chairman Curry stated the Finance and Personnel Committee would discuss
the study further at the April 2nd meeting. Director Lynch said if any recommendations
from the study were approved, changes would be made to the FY 18/19 budget.
Chairman Curry said he recalled the amount to be just under $65,000 if the study
recommendations were approved. Director Lynch reiterated that amount was not
included in the budget as presented and most likely would not be included in the April 11
presentation. Alderman Schaefer suggested that this information be relayed to the
Council.
Alderman Schaefer asked if three new job positions were added to the budget. Chairman
Curry said the new positions have not been approved and suggested this topic also be
presented at the April 2 Finance and Personnel agenda.
Director Lynch and the Committee reviewed the remaining funds. Noteworthy was an
increase to the Tourism Fund Transfer to the General Fund whereby $25,000 was added
for miscellaneous Economic Development expenses.
Chairman Curry noted many of the smaller fund amounts never seem to change. Director
Lynch stated some fund are required to be kept separately from the General Fund and
some funds such as the Pageant and Band Funds were not however they are monitored
closely by staff.
Director Lynch reported FY 18/19 is the last year of the contract with the city's current
Auditor.
Chairman Curry inquired about the amount of revenue included in the Annexation Fund
budget for the Gravel/Mining Annexation Agreement. Director Lynch stated the $65,000
in the summary is the per ton amount. Chairman Curry stated he had been told the
Finance and Personnel Committee
Page 3
March 26, 2018
amount was approximately $700,000.
Alderman Schaefer asked if the Motor Fuel Tax is based on population and Director
Lynch answered yes, the IML established a formula based on per capita not how many
gallons of gasoline were sold in the city however, the more fuel that is sold, the more
revenue would be generated but the city's share is still based on per capita.
Director Lynch reported the TIF Fund is expected to increase again. A discussion ensued
on the merits of charging TIF projects through the General Fund until the TIF fund
balance is healthy versus carrying a negative balance in the TIF Fund.
Regarding the Debt Service Fund, Chairman Curry suggested adding a notation to reflect
the amount owed.
As there was no further discussion, Chairman Curry called for a motion to forward the
proposed FY 18/19 Annual Budget to the full Council on April 11.
Alderman Schaefer made a motion, second by Chairman Curry to forward the proposed
FY 18/19 Annual Budget to the full Council on April 11.
Voting Aye: Schaefer, Curry
Absent: Mihevc
Motion carried.
5. Adjoarn.
Motion by Alderman Schaefer, second by Chairman Curry to adjourn the meeting.
Voting Aye: Schaefer, Curry
Absent: Mihevc
Motion carried.
The meeting adjourned at 6:10 pm.
Respectfully submitted,
Marci Geraghty, Executive Assistant/Deputy City Clerk
Reviewed and approved this � day of fTP,�',iL 2018.
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City of McHenry, Illinois
FY2018/2019 Annual Budget
Table of Contents
Letter of Transmittal
Introduction....................................................................................................................... 1
Elected Officials, Department Directors and Primary Administrators. . 0 0 0 a a 0 1 0 a 0 ff 2
History and Demographic Snapshot of McHenry............... ONE mom Ems Nowmaks 3
City of McHenry Strategic Plan Summary... am MENNEN mom KNOMER451 NORMAN NNW MEN ago ROMERO monsommom NEED 5
GFOA Award for Distinguished Budget Presentation FY17/18........................ 10
Budget Document Guide......... ... ARABIA MAP own loodwo Kom ARM ffwxmmmzmm mom fflosaaoKs mommoffoom OREM 11
Basis of Accounting and Budgeting...... ... RKXEEEZBE Blazon NNE mmoxmmmmmxxm Kom mommommomxmmzmz ago KAM mom KKK 12
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General Fund Operating Budgets Overview....................................................... 55
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Annexation............................................................................................................... 186
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Financial Policies Overview................................................................................... 290
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Fiscal Year 2 018/2 019
Annual Budget
Introduction
1
Elected Officials
Wayne S. Jett, Mayor
Ward 1
Victor A. Santi, Alderman
Ward 2
Andrew Glab, Alderman
Ward 3
Jeffrey A. Schaefer, Alderman
Ward 4
Scott Curry, Alderman
Ward 5
Chad Mihevc, Alderman
Ward 6
Patrick Devine, Alderman
Ward 7
Geri A. Condon, Alderwoman
Department Directors and Primary Administrators
Derik Morefield
City Administrator
John Birk, Chief of Police
Ann Campanella, Director of Human Resources
Bill Hobson, Director of Parks and Recreation
Carolyn Lynch, Director of Finance
Doug Martin, Director of Economic Development
Ross Polerecky, Director of Community Development
Jon Schmitt, Director of Public Works
2
History and Demographic Snapshot of McHenry
McHenry is located in east -central McHenry County, 55 miles northwest of the Chicago Loop and 35
miles from O'Hare International Airport. The City is centered on two major State highways - Illinois
Route 31, which runs north/south from Wisconsin to South Elgin; and, Illinois Route 120, which runs
east/west from Woodstock to Park City. The City consists of approximately 13 square miles in land
area.
In 1832 Major William McHenry led an expeditionary force through northern Illinois during the Black
Hawk War. Settlement of the Fox River Valley began over the next few years, and on the river's west
bank, at the site of an old Indian ford, the hamlet of McHenry established in 1836.
The McLean, Wheeler, McCullom, and Boone families were influential in the community's early years.
A sawmill, hotel, and ferryboat were in operation by 1837 and legislation creating McHenry County
was passed that year, and the village served as county seat until 1844.
Gristmills started along newly dammed Boone Creek, and a wagon road entered town from the south
in 1851. In 1864, the famed Riverside Hotel was built and still stands today.
George Gage, who served as the region's first state senator (1854-1858), owned the lands west of
the millpond, and was able to secure the route of the Fox Valley Railroad (afterward a branch of the
Chicago & North Western) from Chicago in 1854. Consequently, Gagetown (later West McHenry)
began to eclipse the older east side of town containing the Riverside section and Green Street area,
once known as Centerville. This can still be detected in the distinct commercial pattern that
characterizes McHenry's "downtown."
The village incorporated in 1872. Though there were fewer than 800 inhabitants, commerce
flourished. By 1876 there were seven churches and over 80 enterprises, including flour mills,
harnessmakers, a pickle factory, a brewery, seven saloons, and a newspaper. The newspaper, the
McHenry Plaindealer, was in publication from 1875 to 1985.
Over the next 50 years McHenry grew slowly. During the 1920's the town became known as a resort
destination because of the Fox River, surrounding lakes, and easy accessibility from Chicago. Bands
played at local pavilions, trainloads of visitors arrived to tour the famous lotus beds, and summer
cottages proliferated along the Fox River. A boat -building industry flourished; marine recreation still
remains important. For decades, McHenry took very seriously its title as the "Gateway to the Chain -
of -Lakes" and this is still evidenced today in the city 's motto "Heart of the Fox River."
With the advent of the automobile, State Route 120 crossed the Fox River on a new two-lane bridge.
The old wagon trail, now Highway 31, doglegged along the same route for a critical half mile before
turning north toward Wisconsin. These configurations effectively relocated the city's commercial
center to Route 120, and had the unintended side effect of isolating the original business districts
(West Main, Riverside Drive, and Green Street).
In spite of its beauty and strong attraction to tourists, McHenry owed her growth to the stability
provided by the many farmers who worked the fertile land as well as the establishment of industry
with new factories such as Admiral, Borden and The Hunter Boat Company. The Fox River helped
facilitate the import and export of lumber, cigars, clay, food products and brewing which all helped
3
draw new residents to the area. The drainage of a large 60 acre pond that previously divided the
community in half, contributed to increased development and improved roadways, while the railroad
allowed commuters to find this area the perfect place to settle with their families.
A new wave of industry, including automotive components, electronics, and metalworking, swept
into town after World War II. The Northern Illinois Medical Center, begun in 1956 as a 23-bed
community hospital, evolved into a regional trauma center serving two states. Beginning in the late
1940s, subdivisions were annexed on all sides of the city. By this time, many residents were
commuting to work in other localities, including Chicago. McHenry's population tripled from 2,080
in 1950 to 6,772 in 1970, and tripled again to 21,501 in 2000.
McHenry's current population is approximately 27,000, including 10,075 households, an average
household size of 2.66, and median household income of $68,024. Of the 10,075 households,
approximately 7,719 are owner -occupied and 2,356 are renter occupied. The median resident age is
37.1. The City's 2017 EAV was $638,080,968.
The City currently has more than 2,000 approved unplatted lots and platted vacant lots. Active
subdivisions in the City include: Abbey Ridge, Boone Creek, Burning Tree, Chesapeake Hills,
Deerwood Estates, Evergreen Parks, Foxcroft Ridge, Glacier Ridge, Knox Farm, Legend Lakes, Liberty
Trails, Lincoln Hills, Martin Woods, Morgan Hill, Oaks at Irish Prairie, Patriot Estates, Prairie Lakes
and Preserves at Boone Creek.
Total number of businesses in the City is 1,473 and total employment is approximately 19,661, with
an employee/residential population ratio of 73:1. The City's three largest employment sectors, by
number of employees, are: Healthcare and Social Assistance: 5,136 employees/26%; Retail Trade:
3,139 employees/16% and Manufacturing: 2,418 employees/ 12.3%.
Green Street looking south from State Route 120 (circa 1920's)
City of McHenry Strategic Plan Summary
Background
In the fall of 2013 the City Council and Department Directors participated in a facilitated strategic
planning session and the results of this exercise were compiled and presented to Council in the form
of the City of McHenry Comprehensive Strategic Plan document that was adopted by Council in August
of 2014. In addition to establishing updated Mission and Vision statements, Governing Principles
and a Code of Ethics, the plan identified fifty-nine (59) Strategic Goals as guiding principles for
decision -making.
In the spring of 2016 Staff and Council undertook a review ofthe plan documentwith a focus towards
ensuring that the strategic plan remain relevant to the activities/actions being undertaken by staff
and elected officials, to revisit opportunities, and to identify/introduce any new strengths,
weaknesses, opportunities, and threats that may need to be incorporated in to the plan. While
regular annual or biannual review of the plan is essential to provide for a structured mechanism of
update, the plan itself is a "living breathing" document that consistently shifts as internal and external
factors change.
As a result of the initia12014 Strategic Planning Session and the 2016 follow-up review session, the
following now serves as McHenry's Strategic Plan. The attributes and identifiable goals that it
conveys have been identified as essential for the municipality and, as possible, are incorporated into
the annual Capital Improvement Program (CIP) and Annual Budget. Attributes are listed in order of
importance based on participant feedback.
Mission Statement
The City of McHenry is dedicated to providing the citizens, businesses and visitors of McHenry with
the highest quality of programs and services in a customer -oriented, efficient and fiscally responsible
manner.
Mission Accountability
As a continuous reminder of the mission, a commitment is made to undertake the following actions:
• The mission will be read at the beginning of each meeting of the City Council. (City ('ouncil)
• The mission will be placed prominently in each addition of the City Newsletter. (Office of the
City Administrator)
• The mission will be framed and posted at major portals within all municipal buildings. (Office
ofthe City Administrator, Dep artm en t Directors)
• The mission will be incorporated in to daily decision -making and included in future municipal
planning documents. Examples include the annually updated 5-Year Capital Improvement
Program and the annual operating Budget. (Office of the City Administrator, All)
• The mission will be added to letterhead, memos, etc. (Office of the City Administrator, All)
• The mission will be added to website and other social media. (Office of the CityAdministrator)
5
Vision
To make McHenry a community of choice for living, working and recreating for all, with unique
natural resources, abundant cultural opportunities, outstanding neighborhoods, and a vibrant and
diverse economy.
Governing Principles
The values and beliefs guiding the actions of the elected and appointed officials of the City of McHenry
shall include the following:
• Provide an open and honest government.
• Establish an environment that fosters open communication, dialogue, and active listening
with both internal and external stakeholders and customers.
• Ensure quality, responsive customer service.
• Enhance the community's quality of life.
• Embrace the diversity of a multi -cultural and multi -generational working environment.
• Be fair and objective in making community decisions.
• Remember that municipal employees, through their individual and collective abilities to
provide quality services and programs to the residents, businesses and visitors of the
community, are our most valued asset.
Code of Ethics
In addition to the guidance of ethical behavior for elected and appointed officials provided in the
McHenry City Code (Sec. 2-55 Code of Ethics), the following Code of Ethics shall apply:
• Avoid illegalities, improprieties and any perception thereof.
• Avoid accusations or perceptions of wrongdoing.
• Do what makes the most sense.
• Do what is right, not what is easiest.
• Be fiscally responsible and manage budgets effectively.
• Be proactive, look for ways to anticipate and deal with issues.
• Seek innovative ways to improve public services and increase efficiency.
• Keep the public informed and provide opportunities for public engagement.
0
Strengths: Physical assets, supplies, talents, etc. that can assist in accomplishing our vision.
Attribute
To maintain a balanced budget while protecting
our healthy reserves, continuing to evaluate our
1. Stable Financial Position
annual levy with the potential keeping it flat as
long as our reserves are healthy, per our Fund
Balance and Reserve Policy.
To develop and continue marketing strategy for
the Riverwalk and Fox Reiver by expanding and
2. Fox River
developing riverfront recreational areas and
business opportunities.
Retain and support the position of Economic
Development Director to actively pursue
economic development opportunities and be
3. Economic Development
receptive to zoning changes to allow businesses
to grow. Diversity of business types identified
as important.
To maintain and utilize our 600+ acres of park
4. Parks System/Open Space
and open space to provide recreational
opportunities for residents and visitors.
To cooperate with local and area groups,
residents, businesses to have
events/recreational opportunities. Develop a
S. Public Event Coordination
plan that allows feedback from the community
and use data to develop future events. Increase
marketing of municipal and municipally-
supported events.
To continue to support staff development and
6. Staff Development
provide staff with the tools necessary to be
successful in a positive work environment -
respecting their knowledge and expertise.
To continue to foster a climate of collaboration
7. Inter Departmental Teamwork
among departments and within divisions.
Weaknesses: Physical assets, supplies, talents, etc. that are deficient and impede the ability to
achieve our vision.
- Attribute --
Goal
To continue to evaluate and prioritize
infrastructure needs, continuously work to
1. Aging Infrastructure
leverage non -municipal funding, and attempt to
identify consistent funding sources.
To continue to promote respect and teamwork,
2. Internal Communication
find ways to increase meaningful
communication and agree to disagree and move
on.
7
To define and prioritize technology needs of the
3. Aging Technology
municipality and develop and implement
technology plan(s).
To continuously implement methods for
providing enhanced customer service,
4. Public Perception of Government
increased information and to make City
processes, procedures, intentions, actions as
transparent as possible.
To develop a methodology for prioritizing code
enforcement activities based on Council
S. Code Enforcement
direction and develop a Code Enforcement
Strategy,
To continue to coordinate with McHenry County
6. Public Transportation
and surrounding communities
Opportunities: Situations that can have a positive effect on the organization if considered or acted
upon.
1. Riverwalk Expansion
To review and utilize Riverwalk and Downtown
Plans which are already in place and undertake
2. Redevelopment of Central Wastewater
additional studies as needed, to ensure
Treatment Plant site
prioritization and coordination of projects 14
(left). Much of this depends on timing, cost,
3. Miller Point Redevelopment
redevelopment opportunities but the City and
partners should be prepared to act as
4. Downtown Theater Redevelopment
opportunities arise.
To evaluate long term feasibility for expansion
of the recreation center through assessing
S. Recreation Center Expansion
community desires and needs with an
understanding that future phases are driven by
the passage of referenda.
To establish the consolidated dispatch facility
6. Dispatch Facility Expansion
and continue to promote and attract new
customers to the facility.
To continue efforts to obtain construction
7. Fox River Access/Boat Ramp
permit from the USACE and fund and build the
facility.
To evaluate and redevelopment the City's
8. Reconstructed City Website and City Council
internet website to make it more transparent
A/V
and user friendly and to take the steps required
to be able to either live stream or record stream
City Council Meetings.
E.
Threats: Opposite of opportunities. Factors that can have a negative impact on local government.
Attribute
To continue efforts to establish an atmosphere
1. Council -Council, Council -Staff Trust, Respect
of respect and trust through open
communication and cooperation. All on the
same team.
To maintain the City's financial stability while
establishing a financial threshold at a
2. State Budget Crisis
"survivable" level to maintain City services
while continuing to monitor State's financial
crisis.
To explore opportunities for extending the
3. Extend the TIF
current TIF; coordinate with other taxing
jurisdictions; educate public on benefits of TIF
and extension.
To develop a comprehensive assessment of all
4. Aging Infrastructure Costs
infrastructure and implement a prioritization
for replacement - Capital Improvement Plan.
To maintain pace of payment on Police Pension
and to ensure that we are competitive for
5. Pension, Benefit, Insurance Costs
insurance and benefits - adjusting employee
contributions as necessary.
To explore, implement unique opportunities for
business incentives for location and expansion
6. Business Incentives
that sets McHenry apart as a business -friendly
community regardless of the State's issues.
GFOA Award for Distinguished Budget Presentation
The Government Finance Officers Association of the United States and Canada (GFOA) presented a
Distinguished Budget Award to the City of McHenry for its annual budget for the fiscal year beginning
May 1, 2017. In order to receive this distinction a governmental unit must publish a budget document
that meets program criteria as a policy document, as an operations guide, as a financial plan, and as
a communications device. This is the third consecutive year that McHenry has received the award.
GOVERNMENT FINANCE OFFICERS ASSOCIATION
Distinguished
Budget Presentation
Award
PRESENTED TO
City of McHenry
Illinois
For the Fiscal Year Beginning
April 1, 2017
x4jo lam. P• 24 f r,(
Executive Director
10
Budget Document Guide
This budget document is prepared with two major objectives iri mind. First, to provide citizens and
others interested in the City's finances with complete and understandable information regarding the
budget. The second is to develop an annual fiscal plan that will assist City leaders in making better
decisions and enhance financial accountability.
Given the constraints of a small community, this budget document is continually being changed and
is coming closer to meeting the requirements as a:
Policy Document
As a policy document, the City Council has established specific strategies to achieve its goals through
policy decisions as noted in the City Administrator's letter of transmittal. These sections include:
• A budget message, included in the transmittal letter, that articulates priorities and budget
issues, particularly major issues affecting budget decisions;
• Short-term initiatives that guide development of the budget in the upcoming year; and
• General information describing each budget unit's prior year accomplishments and budget
year goals and objectives.
Operations Guide
As an operations guide, the budget document describes activities, services, and functions carried out
by the organizational units. In addition, it provides an organizational chart and summary of
authorized personnel for the prior year and the budget year.
Financial Plan
As a financial plan, the budget document describes all funds subject to appropriation in the fund
structure overview section. In addition, all summaries of all major revenues and expenditures are
provided in summary tables. The final budget also includes General Fund revenues for the 2014/15
through 2016/17 fiscal years as well as budget amounts for the current and upcoming years. Finally,
the summary section includes information as the projected changes in fund balances for all
appropriated funds.
Communication Device
The Budget Document contains narratives, supplemented with tables and charts, which present the
budget in a manner that is simple and understandable. The Proposed FY18/19 Budget is available
for public review at the McHenry Municipal Center, 333 S. Green Street, McHenry, as well as on the
City's website at www.ci.mchenr .iy l.us prior to adoption by the City Council. Once adopted, the
budget is available for public review at the McHenry Municipal Center, 333 S. Green Street, McHenry,
as well as on the City's website at www.ci.mchenr, .iy l.us.
11
Basis of Accounting and Budgeting
The City of McHenry uses the modified accrual basis of accounting to budget and account for
transactions of the governmental funds. Under this basis of accounting, revenues are recognized
when susceptible to accrual (when they are measurable and available) and expenditures are
recognized when the fund liability is incurred. For the City's proprietary funds the City uses the
accrual basis of accounting. Under this basis, revenues are recorded when earned and expenses are
recorded when the liability is incurred. The City prepares the budgets for proprietary funds
consistent with this basis except that capital outlay items are included in the budget.
The City prepares its budget on a basis consistent with generally accepted accounting principles
except that the City also recognizes encumbrances for budgetary purposes. Encumbrances include
supplies ordered but not received, and services contracted but not yet expended by the City.
Encumbrances are charged against a budget or appropriation for account purposes. Accordingly,
expenditures/expenses in this document include encumbered expenditures/expenses.
Encumbrances do not lapse at year-end and provide authorization for expenditures/expenses for the
following year.
The City appropriates funds for capital projects on a fiscal year basis. The Capital Projects section of
this document includes descriptive information on each project with estimated costs and financing
sources.
12
Budget Process Summary
Budget Process Overview
The City's annual fiscal year budget covers the period beginning May 1st and ending April 30th and
contains information relative to estimated revenues and planned operational and capital
expenditures for the various funds of the municipality for the identified fiscal year.
Although the budget is not formally adopted by the City Council until April of each year, the budget
development process officially begins each October with the preparation of the annual tax levy, which
is used to fund many of the current programs and services, along with the development/update of
the five-year Capital Improvement Program (CIP). The budget preparation process provides the
various divisions and departments of the City with the opportunity to review accomplishments, set
goals and objectives, and identify the means for accomplishing these goals and objectives.
Capital Improvement Plan
The five-year Capital Improvement Program (CIP), reviewed and updated annually, is an integral part
of the budget process and is designed to achieve two fundamental objectives: first, to identify the
major capital needs of the City over a specific planning period; and, second, to prioritize and begin
planning, both financially and logistically, for the implementation of these capital improvements.
Capital expenditures are defined as any project that will have a useful life of longer than one year and
a value greater than $10,000. The CIP prioritizes each project using a unified and objective system
that identifies the most important capital project needs. The final budget document includes capital
expenditures as defined and prioritized during the CIP development process - based on the
availability of sufficient funds. Importantly, the CIP document serves as a planning document for the
identification of capital improvement and capital equipment needs and not a budget document. In
other words, simply because a project is identified in the CIP does not guarantee that it will ever be
implemented. Implementation is based on annual review and availability of funding in the budget
document.
Budget Roles and Responsibilities
Every employee of the municipality plays a role in the budgeting processformulation,
preparation, implementation, administration, or evaluation. Ultimately, Department Directors,
through the City Administrator, are accountable to the City Council and to the residents of McHenry
for the performance of departments in meeting goals and objectives as they are laid out in the budget
document.
Department Directors, with input from their respective managers, superintendents and
departmental staff analyze historical data, review existing operational needs, and project anticipated
operational needs in order develop detailed line -item budget requests that allow them to maintain
or enhance the level of programs and services within their departments. These detailed requests are
then submitted to the City Administrator and Finance Director, meetings are held with Department
Directors to adjust requests based on anticipated revenues keeping in mind the overall needs of the
municipality, and the fund line item requests found in the attached budget document are identified.
Budget Appropriation and -Supplemental Appropriation
While the approved budget document establishes the estimates for revenues and guidelines for
expenditures of the municipality, the City is required to conduct a public hearing and adopt an annual
appropriation ordinance each July. The appropriation ordinance provides the legal authority to
13
allocate funds to specific spending activities and establishes the City's legal spending limit for the
fiscal year.
During the fiscal year it may be necessary, from time to time, to amend the approved budget (see
Budget Amendment Process below). As a result, in October following the close of the fiscal year
period (April 30f) the City is required to pass a supplemental appropriation ordinance to amend the
original appropriation ordinance to account for these budget amendments.
Budget Amendment Process
While budgets are prepared at the operational line item level, and approved by Council at the fund
line item level, budget amendments are brought before Council, per the Purchasing Policy and
Procedures approved in 2016, for unbudgeted items over $6,500.
Budgetary Controls
Without proper internal financial controls the budget document will not serve its role as a guidance
tool for City programs and projects. To this end, the Finance Department prepares monthly reports
which are reviewed by the Finance Director, respective Department Directors, and the City
Administrator. These monthly reviews provide, at a minimum, an opportunity to make operational
adjustments throughout the year as necessary. Any deviations from the fund budgetary amounts are
discussed in this document and, when necessary, solutions are presented. Quarterly financial reports
are also transmitted to the City Council via a City Council Meeting Consent Agenda to ensure that the
elected body is consistently apprised of the status of municipal revenues and expenditures.
Preparation to Achieve the Government Finance Officers Association (GFOA) Budget Award
Beginning with the FY15/16 Budget, the City Administration committed to undertaking continuous
improvements to the annual budget document that achieves the highest quality and reflects both the
guidelines established by the National Advisory Council on State and Local Budgeting and the GFOA
best practices on budgeting. While some of these improvements are subtle, or related to unseen
operational modifications, others are more visible - such as the redevelopment of the budget to its
current form aimed at providing the reader with a more understandable and transparent document.
14
Budget Process Timeline
Tuesday, January 2, 2018 City Administrator, Finance Director distributes worksheet and
instructions for budget preparation to Department Directors
Monday, January 15, 2018 Proposed FY18/19 - FY22/23 CIP transmitted to City Council
Monday, January 29, 2018 Committee of the Whole Meeting/CIP Workshop to Discuss
Proposed FY18/19 - FY22/23 CIP
Friday, February 9, 2018 Department Directors submit budget requests to City
Administrator and Finance Director
February 12-February 16, 2018 City Administrator and Finance Director review budget requests
with respective Department Directors
Monday, February 19, 2018 Revised FY18/19 - FY22/23 CIP adopted by City Council
February 19-March 2, 2018 Preparation of the Proposed FY18/19 Budget
Monday, March 5, 2018 Transmit Proposed FY18/19 Budget to Finance and Personnel
Committee and City Council (operating funds)
Monday, March 12, 2018 Finance and Personnel Committee Meeting to discuss Proposed
FY18/19 Budget Document (operating funds)
Monday, March 19, 2018 Transmit Proposed FY18/19 Budget to Finance and Personnel
Committee and City Council (all funds)
Monday, March 26, 2018 Finance and Personnel Committee Meeting to discuss Proposed
FY18/19 Budget (all funds)
Monday, Apri12, 2018 Final Proposed FY18/19 Budget -including all narratives, charts,
supplemental information -transmitted to City Council for
review and posted on City's Website (www.ci.mchenjy.il.us)
Wednesday, Apri111, 2018 Committee of the Whole Meeting/Budget Workshop to review
Final Proposed FY18/19 Budget
Monday, April 23, 2018 (if needed) Committee of the Whole Meeting/Budget Workshop to review
Final Proposed FY18/19 Budget
April 30, 2018 Final Revised FY18/19 Budget adopted by City Council
15
Budget Process Timeline
CIP Creation
CIP Review & Finalization
Property Tax Levy
Budget Creation
Budget Review, Finalization,
and Adoption
Aug-17
Sept -17
Oct -17
Nov -17
Dec -17
Jan18
Feb-18
Mar-17
Apr -18
May -18
5�.
City of McHenry Organizational Chart
17
Personnel Summary
The following table provides a summary overview of the staffing level of the municipality for the
previous five (5) fiscal years and identifies the proposed staffing level for FY18/19.
The increase in staffing levels in the General Fund from FY15/16 to FY17/18 of 15.42 employees was
primarily due to the development of the consolidated 911 dispatch center (NERCOM). During this
time period, ten (10) new dispatchers and one (1) civilian supervisor have been hired to fully staff
this facility. Importantly, the City of McHenry is responsible for only 46.8% of NERCOM personnel
costs due to partnerships with the City of Woodstock, City of Harvard and the McHenry Township
Fire Protection District which, through center revenues, pay the remainder of the costs. Prior to this
consolidation, the General Fund totaled 111.98 employees - 20.57 employees LESS than FY07/08
when measures were taken to reduce staffing due to the recession.
Staffing identified in the Recreation Center and Water and Sewer Funds is financed by revenues
generated by these funds.
Budget
General Fund
Administration
IN
(3.00)
6200
6.00
6.00
6.00
8.00
8.00
Elected Officials
0.00
0.00
0.00
0.00
1.00
1.00
1.00
1.00
Community Development
7.50
0.40
7.90
7.90
5.50
5.50
5.50
6.50
Finance Department
6.00
1.00
5.00
5.00
4.60
4.60
4.60
4.60
Human Resource Department
1.00
1.00
0.00
0.00
0.00
0.00
0.00
0.00
Economic Development
Department
3.00
3.00
0.00
0.00
0.00
0.00
0.00
0200
Police Department
52.75
0.00
52.75
51.75
61.88
60.88
60.88
60.88
NERCOM (Dispatch)
22.25
0200
22.25
12.25
0.00
0.00
0.00
0.00
Public Works Administration
3.50
0.00
3.50
4.50
IN
IN
2.00
IN
Public Works Streets
19.00
0200
19.00
18.00
18.00
19.00
18.00
18.00
Parks and Recreation
US
1.75
11.00
11.00
13.00
12.00
10.00
11.00
Total General Fund
127.25
0.15
127.40
116.40
111.98
110.98
109.98
111.98
Recreation Center Fund
2.25
1.25
1.00
1.00
0.00
0.00
0.00
0.00
Information Technology Fund
2.00
0.00
2000
2.00
2.00
2.00
2.00
2.00
Water and Sewer Fund
Water Division
5.50
0.00
5.50
5.50
4.50
9.50
9.50
9.50
Wastewater Division
8.00
1.00
9.00
7.00
7.00
10.00
9.00
10.00
Utility Division
8100
0.00
8.00
9.00
9.00
0.00
0.00
0.00
Total Water and Sewer Fund
21.50
1.00
22.50
21.50
19.50
19.50
18.50
19.50
Total City of McHenry
153.00
0.10
152.90
140.90
133.48
132.48
130.48
133.48
Population
261992
26,992
26,992
26,992
26,992
26,992
26,992
Employees per 1,000 Population
5.67
5.66
522
4.95
431
433
4.95
Staffing Needs Summary - Overview
In FY16/1, the administrative leadership team Lie., City Administrator, Human Resources Manager,
Department Directors, Superintendents, Managers) began the development of a Staffing Needs
Analysis. The primary purpose of this exercise was/is to develop a five-year Comprehensive
Workforce Plan that includes recommendations to changes in the organizational structure of the
municipality; recommendations for organizational training and employee development; the
implementation of career and leadership development programs; the implementation of employee
retention programs; and, the establishment of departmental succession plans. Ultimately, a staffing
plan allows Human Resources to update job descriptions, research appropriate wage and
compensation levels, network with other municipalities regarding their workforce needs and, in
general, be prepared for change within the organization.
Several factors triggered the need to determine staffing changes and future positions -the opening
of the McHenry Recreation Center, changes in how we provide services to residents and other
customers, and the identification of a significant number of employees reaching retirement age. All
of these factors led to the need to conduct an internal staffing analysis to prepare for the future.
In summary, the needs analysis addresses the staffing levels as well as the skills, knowledge, and
abilities needed to accomplish process improvements and create greater efficiency in operations. As
such, department directors were asked to project five years into the future in attempting to identify
department staffing needs, both in terms of personnel and skill, knowledge and abilities. This would
be achieved by analyzing the following factors:
1. Core Functions - Identification of the core functions of the municipality by
division/department;
2. Environmental Scan - Identification of the internal and external factors that could change the
way that core functions of the municipality are delivered;
3. Current Workforce Profile -Assessment of the knowledge, skills and abilities of the existing
workforce and to determine how the demographics of the workforce may impact the
organization during the period covered by the workforce plan;
4. Future Workforce Profile -Determining the needs of the future workforce based on required
knowledge, skills and abilities, use/application of technology, or anticipated
increases/decreases in staffing;
5. Gap/Surplus Analysis -Identification of any gaps and/or surpluses in staffing or skills that
will be required to efficiently and effectively carry out the core functions of the municipality.
Once this first task was complete, directors met with Human Resources Manager Campanella and
City Administrator Morefield to present and discuss their staffing needs for the next five years. The
discussions generally included:
• Changes to a specific position or title when an existing employee departs;
• If certain existing or new positions can be job -shared or whether interns or other staffing
tools could be used to reduce workforce costs;
I
L•7
• Identification ofthe impact of technology on specific jobs or job functions resulting in changes
to the tasks associated with a position or the technical skills required to be successful in that
job.
Through this process, and subsequent review and update during the FY18/19 Budget process, the
following new or revised positions will be required within the next five years to meet the changing
services and programs and to ensure that the residents of McHenry continue to receive a high level
of customer service.
General Administration (includes Human Resources and Finance)
• Grant Writer
• Public Information/Communication Specialist
• Human Resources Assistant (PT)
Community Development
• Planner
• Seasonal Code Compliance Officer (summers)
Information Technology
• Network Engineer
Parks
• 3 Parks Maintenance Workers
Police
• Community Service Officer (PT)
• Public Relations Officer - filled with existing employee
• FOIA/Evidence Technician (PT)
• Parking Enforcement Officer (PT)
Public Works
• Public Works Engineering Intern (summer)
• Assistant Public Works Director
• Forestry Maintenance Worker (Streets)
• 3 Maintenance Workers
• Certified Laboratory Technician (WW)
• Wastewater Operator II IEPA Licensed Class I
• Utility Crew Leader
• Mechanic (PT)
Recreation
• Recreation Center Supervisor - position filled
The new position summary is a working list with the understanding that business and community
needs change over time. This list will be reviewed and further refined annually to ensure that
positions are updated and reviewed as the workforce changes. It is important to not, as discussed
elsewhere in this document, that during the recession many employees absorbed the work of
eliminated positions which has led to a comingling of responsibilities which sometimes causes
20
confusion. The goal of this plan would be to untangle these positions, analyze responsibilities and
assign duties where appropriate.
21
Fund Structure Overview
The accounting system and the budget appropriation process are structured according to the basic
guidelines established by the Government Finance Officers Association (GFOA) of the United States
and Canada. The format includes the basic funds and fund types which follow.
The City's governmental funds are as follows:
General Fund (100s)
This fund accounts for all transactions of the city that pertain to the general administration of the city
and the services traditionally provided to its citizens. This includes Administration, Elected Officials,
Community Development, Finance, Police, Public Works Administration, Streets, and Parks and
Recreation.
Special Revenue Funds (200s)
These funds are utilized to account for revenues derived from specific sources which are usually
required by law or regulation to be accounted for as separate funds. For the City of McHenry these
funds include the Tourism Fund, Pageant Fund, Band Fund, Civil Defense Fund, Alarm Board Fund,
Audit Fund, Annexation Fund, Motor Fuel Tax Fund, Developer Donation Fund, and Tax Increment
Fund.
Debt Service Fund (300)
This fund accounts for the accumulation of revenues for and payment of principal and interest on
general obligation long term debt.
Capital Improvements Fund (440) and Capital Equipment Fund (450)
These funds are utilized to account for financial resources to be used for the acquisition or
construction of capital facilities or other major fixed assets.
The City's business -type funds include the following:
Enterprise Funds (500s)
These funds are utilized to account for operations and activities that are financed and operated in a
manner similar to a private business enterprise, and where the cost of providing goods and services
to the general public on a continuing basis is expected to be recovered primarily through user
charges. The City has also established Enterprise Funds when it was advantageous to segregate
revenues earned and expenses incurred for an operation for purposes of capital maintenance, public
policy, management control or accountability. Enterprise Funds for the City include the Water and
Sewer Fund, Capital Development Fund, Utility Improvements Fund, and Marina Operations Fund.
Internal Service Funds (600s)
These funds are established to finance and account for services and/or commodities furnished by
one department or agency to other departments or agencies of the city. The Internal Service Funds
A the City are the Employee Insurance Fund, Risk Management Fund, and Information Technology
Fund.
22
The Citys other funds include the following:
Fiduciary Funds (700s)
These funds are used to account for resources held for the benefit of parties outside the city. The
fiduciary funds of the city are the Employee Flexible Spending Fund, Developmental Escrow Fund,
Retained Personnel Fund, Revolving Loan Fund, and the Police Pension Trust Fund.
Accounting for the financial activities of the City and the budget appropriation process are
also presented according to classifications required by the State of Illinois. Revenues are
credited to individual fund types while expenditures/expenses are recorded according to
functional areas within specific funds for budgetary control purposes. The following
functional areas are included in the budget.
General Government
This function provides for the operation of the government and assures the general administration
of the municipality. Activities included in this function also include Economic Development, Human
Resources, Information Technology and Municipal Center Building and Grounds Maintenance.
Community Development
The overall mission of this function is to protect and promote the health, welfare, safety and quality
of life of McHenry Citizens, property owners, visitors and commercial interests through the
development and implementation of the City's adopted ordinances and policies. Planning and
development activities are also included within this function.
Finance
This function applies modern financial management practices to ensure that the City is able to deliver
services effectively and efficiently on a sustained basis. Activities included in this function are
reporting financial transactions, billing and collecting money, accounts payable, managing cash and
investments, preparing the annual financial report, and developing the budget and financial
forecasts.
Public Safety
This function provides for services to reduce the amount and effects of external harm to individuals
and damage to property, and in general to promote an atmosphere of personal security from external
events.
Public Works
This function provides for safe and well -maintained infrastructure for the City. Activities included in
this function are public works administration, roadway maintenance, snow and ice control, street
cleaning, traffic control and engineering.
Parks and Recreation
This function promotes the general well-being of the City and encourages the fullest development of
cultural and educational potentials of the citizens in the community. This function includes the
activities of general parks, parks and maintenance, downtown maintenance and programs.
Debt Service
This function provides for the accumulation of resources for and the payment of principal and
interest on long-term debt of the City.
Capital Projects
This function provides for the acquisition or construction of major capital facilities or equipment for
the City.
Business -Type Activities
This function includes activities of the City that are financed in whole, or in part, by fees charged to
external parties for goods and services. These activities are accounted for as enterprise funds and
include the Water and Sewer and Marina Operations Funds.
24
Chart of Accounts Overview
Funds are comprised of various line item accounts. These are separated as "Revenues" and/or
"Expenses" as appropriate and are assigned based on the following specific line item designations:
Revenues
3010 Property Tax Collection -Amount collected in taxes assessed on real estate.
3020 Property Tax Collection -Road &Bridge -Amount collected in taxes assessed on real estate
by the McHenry and Nunda Township Road Districts and disbursed to the City for roads and bridges
within the City.
3030 Property Tax Collection -Police Protection -Amount collected in taxes assessed on real
estate that funds a portion of police protection expenses.
3040 Property Tax Collection -Retirement -Amount collected in taxes assessed on real estate
that funds a portion of retirement expenses.
3050 Property Tax Collection -Liability Insurance -Amount collected in taxes assessed on real
estate that funds a portion of liability insurance expenses.
3051 Property Tax Collection -Police Pension -Amount collected in taxes assessed on real estate
that funds the actuarial required contribution to the police pension fund.
3110 Personal Property Replacement Taxes -Revenues collected by the State of Illinois and
disbursed to the City to replace money that was lost by local governments when their powers to
impose personal property taxes on corporations, partnerships, and other business entities was taken
away in 1979. These funds are limited to use for retirement funding.
3120 State Sales Taxes -The state collects a 1% tax on a seller's receipts from sales of tangible
personal property for use or consumption that is distributed based on sales in the City.
3121 Home Rule Sales Taxes -The state collects a 0.5% tax on a seller's receipts from sales of
tangible personal property for use or consumption that is distributed based on sales in the City. This
home rule sales tax is not charged on sales of vehicles.
3125 Telecommunications Taxes -The state collects an 8%tax that is imposed on intrastate and
interstate messages and 1% is distributed to the City.
3130 State Income Taxes -Amount collected in taxes imposed on financial income generated by all
entities within the State. The State distributes 8% of the net collections of all income tax received
from individuals, trusts, and estates and 9.14% of the net collections of all income tax received from
corporations to local governments based on the population in proportion to the total state
population.
3140 Pull Tabs -Amount collected by the State and disbursed to the City for operator licenses and
taxes on gross proceeds of pull tabs and jar games.
25
3141 Inter -Track Wagering - Amount collected for a 1%tax collected on the handle at Trackside
McHenry Off Track Betting establishments within the City.
3142 Hotel/Motel Taxes -Amount collected for a 5%tax assessed on the rental or leasing charges
for hotel or motel rooms.
3150 Motor Fuel Tax Allotment -Taxes collected on gasoline and diesel fuel collected by the State
and disbursed to the City based on the population.
3210 Interest Income -Interest earned on cash temporarily held in checking accounts, certificates
of deposits, or other investments.
3310 Liquor Licenses -Amount paid by establishments within the City that hold valid liquor
licenses.
3320 City Licenses -Amount collected from businesses within the City for licenses for massage
parlors, athletic exhibitions for profit, billiard and pool halls, carnivals, circuses, exhibitions, motion
pictures and theatricals, public dance halls, skating rinks, bowling alleys, and mechanical amusement.
3330 Vehicle Stickers -Amount paid annually by residents for each licensed motor vehicle owned
and operated by them.
3350 Video Gambling Licenses -Amount paid annually by each private business and terminal
operator for a video gambling license. Also includes the amount disbursed by the State of Illinois for
the City's portion of the video gaming tax.
3410 Permits -Amount collected to issue a building permit for miscellaneous improvements such
as roof repairs, siding repairs, fences, etc.
3420 Plumbing Inspections -Amount collected for the inspection of the connection to a water main
through a permit fee.
3430 Zoning &Plat Fees -Amount collected for residents or business owners to have a hearing
before the planning &zoning commission for items like conditional use permits, variances, etc.
3505 Traffic Fines -Amount collected by the McHenry County Circuit Clerk's office and forwarded
to the City for traffic fines that occurred within the City.
3510 Parking Fines -Amount collected in fines for parking violations.
3515 Police -Accident Reports -Amount collected for administrative fees to furnish accident
reports.
3520 Police -Field Reports -Amount collected for administrative fees to furnish field reports.
3525 Drug Asset Forfeitures -Amount collected through the sale of assets that were forfeited.
3530 DUI Fines -Amount collected by the McHenry County Circuit Clerk's office and forwarded to
the City for DUI charges.
26
3532 Overweight Truck Permits - Amount collected for the issuance of overweight truck permits.
3536 Police Bail Bond Processing Fees - Amount collected in fees to process bail paperwork.
3537 Police Impound Fees -Amount collected as an administrative penalty for a motor vehicle that
is used in connection with the following driving violations such as driving under the influence, driving
while license is suspended or revoked, no valid driver's license, etc.
3538 Warrant Execution -Amount received from other governmental agencies for the execution
of a warrant by the City's police department.
3539 Electronic Citation -Amount collected by the McHenry County Circuit Clerk and forwarded
to the City for electronic citation.
3540 Vehicle License Fines -Amount collected for fines for vehicle stickers that are purchased after
the due date of June 30th,
3545 Vehicle Fund Fines -Amount collected by the McHenry County Circuit Clerk and forwarded
to the City for vehicle court supervision fines.
3610 Sales -Water/Sewer -Amount collected for water and sewer usage based on meter readings
charged at a per 1,000 gallon rate.
3615 Base Charge -Capital -Amount collected through the utility bill for water and sewer base
fees that will be retained and used for development and repairs to the utility capital system.
3620 Penalties -Amount collected for utility bills that are paid after the due date.
3630 Hookup/Connection Fees -Amount collected for permit fees that are charged for the
connection to the water and sewer system.
3631 Parks &Recreation Programs -Amount collected for programs offered through the parks
and recreation department.
3632 Concessions -Amount collected at concession stands at City parks as well as at the Recreation
Center.
3633 Beach Programs -Amount collected for daily admission at the McCullom Lake Beach.
3634 Swimming Pool -Amount collected for admission to the Merkel Aquatic Center.
3640 Water Meter Sales -Amount collected for the initial or replacement water meter.
3641 Babysitting -Amount collected for childcare services offered at the Recreation Center.
3642 Room Rentals -Amount collected at the Recreation Center for community room rentals.
3643 Birthday Parties -Amount collected for birthday parties that are held and run by personnel
at the Recreation Center.
27
3644 Sponsorship/Advertisement - Amount collected for sponsors or advertisements at the
Recreation Center.
3645 Annual Membership -Amount collected for membership fees for the Recreation Cente, .
3646 Short -Term Membership -Amount collected for temporary membership fees for the
Recreation Center.
3647 Daily Admissions -Amount collected for daily membership fees for the Recreation Center.
3648 Punch Passes -Amount collected for 10 and 20 punch passes that act as daily membership to
the Recreation Center as well as attendance at specialty fitness classes held at the center.
3649 Miscellaneous Fees -Amount collected at the Recreation Center for miscellaneous fees such
as workout logging devices, and other items sold at the center.
3650 Fitness Classes -Session Based -Amount collected for fitness classes held at the Recreation
Center.
3651 Small Group Personal Training -Amount collected for Recreation Center members that sign
up for a small group personal training session.
3652 Personal Training -Amount collected for Recreation Center members that sign up for
personal training services.
3653 Elective Participant Premium -Amount collected for City provided health insurance for
retired employees or former employees on COBRA.
3660 Debt Service Fees -Amount collected from sewer users to retire debt issued by the City.
3665 Debt Service Fees - IEPA Loan -Amount collected from sewer users to retire an Illinois
Environmental Protection Agency loan used to consolidate the Central and South Wastewater
Treatment Plants.
3682 Mowing/Weeds -Amount collected for the cutting or removal of weeds and plant growth in
excess of 8 inches which is paid for by the owner of the property.
3683 Alarm Board Revenue -Fines collected on false alarms after having six free alarms.
3711 Meeting Fees -Planning &Zoning - Reimbursements by developers and zoning petitioners for
the Planning &Zoning Commission hearing attendance collected in the Retained Personnel Fund.
3715 Annexation Income -Amount collected as determined by the annexation agreement.
3720 Operating Fees -Amount collected through permit fees on behalf of the school districts, fire
district and library district from the developer to pay its fair share of public improvements that may
be required because of the new development. These fees are paid out to the districts monthly.
3730 Engineering Fees -Reimbursements by developers for expenses paid for contracted
engineering advice and service in the Retained Personnel Fund.
3735 Legal Fees - Reimbursements by developers for expenses paid for legal fees in the Retained
Personnel Fund.
3740 Fees - Developers - Miscellaneous -Reimbursements by developers for miscellaneous
expenses such as recording fees in the Retained Personnel Fund.
3745 Gravel Mining/Annexation Agreement -Amount received per the annexation agreement for
the gravel pit within the City.
3750 Refunds -Developers -Amount paid by developers for a retained personnel deposit that is
over and above the expenses and will be refunded to the developer.
3760 Received from Developers -Amount collected from developers as contributions to public
improvements such as signs, traffic signals, intersection improvements, etc.
3775 Developer Donations -Schools -Amount collected through permit fees on behalf of the
school districts from the developer to pay its fair share of public improvements that may be required
because of the new development. These fees are paid out to the school districts annually.
3780 Developer Donations -Parks -Amount collected through permit fees for parks from the
developer to pay its fair share of public improvements that may be required because of the new
development.
3785 Developer Donations -Library -Amount collected through permit fees on behalf of the
library district from the developer to pay its fair share of public improvements that may be required
because of the new development. These fees are paid out to the library district annually.
3790 Developer Donations -Fire -Amount collected through permit fees on behalf of the fire
district from the developer to pay its fair share of public improvements that may be required because
of the new development. These fees are paid out to the fire district annually.
3815 Donations -Amount donated to the City for various reasons.
3830 Employer Contributions -Actuarial contrived amount that the City contributes to the Police
Pension Fund.
3831 Employee Contributions -Amount collected from employees for benefits provided by the
City.
3832 Cable Franchise Fees -Amount charged to a cable television company for the use of public
right-of-ways.
3835 Garbage Bags -Amount collected for the sale of garbage stickers to residents.
3845 Rental Income -Rent charged for the use of municipal properties including Main Street
Station, Hickory Creek Farm, farmlands, water towers, the marina, etc.
3881 Reimbursement -Communication Desk -Amount charged to agencies that the City provides
dispatching services for.
29
3882 Reimbursement - Miscellaneous - Reimbursement for expenses for city services provided
such as school resource officers, traffic control, snowplowing, etc.
3885 Reimbursements -Property Insurance -Insurance payments for property damage within the
City.
3890 Miscellaneous Income -Revenue that does not fit into other categories such as handicap
placards, lien fees, collection fees, adjudication court fees, etc.
3915 Bond Interest Rebate -Interest rebate issued to the City from the Department of the Treasury
Internal Revenue Service for Recovery Zone Economic Development Bonds and Build America Bonds.
3920 Sale of Fixed Assets -Proceeds from the sale of municipal owned fixed assets.
3969 Transfer -TIF -Internal Fund Transfer from the TIF Fund to cover debt service fees.
3970 Charges for Services -Internal Fund Transfer from the Water/Sewer Fund to cover
administrative costs for the issuance of utility bills.
3971 Transfers -Annexation Fund -Internal Fund Transfer from the Annexation Fund to cover
debt service fees.
3972 Transfers -Recreation Center Fund -Internal Fund Transfer from the Recreation Center
Fund to cover debt service fees.
3975 Transfers -General Fund -Internal Fund Transfer from the General Fund to cover debt
service fees, capital expenses, insurance expenses, and information technology expenses.
3978 Transfers -Water/Sewer Fund -Internal Fund Transfer from the Water/Sewer Fund to
cover debt service fees, utility division expenses, insurance expenses, and information technology
expenses.
3986 Transfers -Motor Fuel Tax Fund -Internal Fund Transfer from the Motor Fuel Tax Fund to
cover debt service fees.
3994 Transfers -SSA #4 -Internal Fund Transfer from the SSA #4 Fund to cover expenses for the
Lakewood Road Utility.
3999 Transfers -Other Funds -Internal Fund Transfer from miscellaneous special revenue funds
and internal service funds to cover items such as fireworks, risk management, etc.
30
Expenses
4010 Salaries -Regular -Salary expense for employees who work 40 hours or full time.
4020 Salaries -Sworn -Salary expense for sworn police department employees who work 40 hours
or full time.
4030 Salaries -Regular Part-time -Salary expense for employees who work less than 40 hours,
but are employed throughout the calendar year.
4050 Salaries -Regular Overtime -Salary expense paid to non-exempt non -sworn employees at
one and one-half times or two times the employee's regular hourly rate for all hours worked in excess
of forty hours per week.
4055 Salaries -Regular Sworn Overtime -Salary expense paid to non-exempt sworn employees
at one and one-half times the employee's regular hourly rate for all hours worked in excess of forty
hours per week.
4060 Salaries -Snow Removal Overtime -Salary expense paid to non-exempt non -sworn
employees at one and one-half times or two times the employee's regular hourly rate for all hours
worked in excess of forty hours per week for snowplowing.
4080 Salaries -Career Ladder -Salary expense paid to sworn police department employees for
on -call and investigator stipend pay.
4100 Salaries -Seasonal/Part-time -Salary expense for employees who work less than 40 hours
per week and can be seasonal help.
4220 Salaries -Boards &Commissions -Salary expense for the Mayor, Council members, the City
Clerk and the Planning and Zoning Commissioners.
4310 Health Insurance -Expenses for employee group medical insurance premiums.
4320 Dental Insurance -Expenses for employee group dental insurance premiums.
4330 Life Insurance -Expenses for employee group life insurance premiums for city provided
coverage at $30,000.
4340 Vision Insurance -Expenses for employee group vision insurance premiums.
4410 Contribution -FICA -The employer contribution of Social Security and Medicare, which is
currently at 7.65% of eligible wages.
4420 Contribution IMRF -The employer contribution of IMRF for all employees covered under the
IMRF program.
4430 Contribution Police Pension -The amount provided through property tax collection for the
Police Pension Fund. This amount is determined by an actuarial study conducted on an annual basis.
31
4a10 Uniform Allowance - Expenses for uniforms and personal protective equipment provided for
those public service employees required to wear uniforms while performing their jobs.
4910 Retirement Benefits -Retirement benefits paid to police pension beneficiaries who apply for
a regular pension.
4920 Disability Benefits -Retirement benefits paid to police pension beneficiaries who have been
found to have a duty disability. This type of pensions must be approved by the Police Pension board.
4930 Survivor Benefits -Retirement benefits paid to the surviving spouse of a police pension
beneficiary.
4940 Non -Duty Disability Benefits -Retirement benefits paid to police pension beneficiaries who
have been found to have a non -duty disability. This type of pensions must be approved by the Police
Pension board.
4990 Contribution Refund -Refund of police pension contributions made by a sworn employee
that is no longer employed with the City. The employee must request a refund from the pension fund.
5110 Contractual Services -Expenses that are based on a contract or are paid on a monthly basis
such as mowing, PACE fees, copier lease payments, bank service charges, miscellaneous building
charges, etc.
5200 Contract Custodial -Expenses for monthly janitorial serves at the Recreation Center.
5215 Retention/Promotion -Expenses for promotional materials for the Recreation Center.
5220 Engineering Fees -Expenses paid for contracted engineering advice and service in the
Retained Personnel Fund, which are reimbursed by the developers.
5230 Legal Services -Expenses for contracted legal advice and services.
5245 Health HRA Reimbursement -Employee health insurance reimbursement expenses paid by
the city that covers expenses above the in-house set deductible up to the insurance carrier's
deductible.
5310 Postage &Meter -Expenses for postal related services such as stamps, bulk mailings,
overnight deliveries, UPS, etc.
5320 Telephone -Expenses for telephone lines, alarm circuits, and cellular phone services.
5321 Cable/TV -Expenses for monthly cable television service at the Recreation Center,
5330 Printing &Publishing -Expenses for advertisements such as employee recruitment ads, bid
notices, legal notices, and other required notices. Expenses also for the city newsletter and printing
of vehicle sticker notices and utility bills.
5370 Repair &Maintenance -Expenses for routine maintenance on municipal vehicles.
32
5375 Repair & Maintenance - Equipment - Expenses for routines maintenance on municipal
equipment.
5380 Repair &Maintenance -Utility System -Expenses for routine maintenance on municipal
utility systems.
5410 Dues -Expenses for membership dues for various professional organizations.
5420 Travel Expenses -Expenses paid for travel related costs such as mileage, tolls, per diem,
lodging for conferences and training for employees on municipal business.
5430 Training -Expenses including registration fees, tuition, etc. for attendance at professional
conferences and meetings for professional development.
5440 Tuition Reimbursement -Expenses for tuition that covers successful completion of course
work with proof of a passing grade or certification.
5450 Publications -Expenses for books, magazines, periodicals, pamphlets, maps, subscriptions,
training materials, etc. used for professional development.
5510 Utilities -Monthly expenses for utilities used by municipal buildings including electric and
natural gas.
5520 Street Lighting -Monthly expenses for electric usage for street lights throughout the city.
5580 Disposal -Expenses for sludge removal at the wastewater plant.
5600 Credit Card/Bank Fees -Expenses for monthly credit card and banking fees charged to the
Recreation Center.
5950 MCMRMA Fees -Expenses for McHenry County Municipal Risk Management Agency annual
fees for insurance that covers unemployment, workers compensation, car insurance, liability, fire,
theft, property damage, etc.
5960 Insurance Premiums -Miscellaneous -Expenses for notary bonds and public official bonds.
5980 Property Damage -Expenses to repair municipal property damage that will be covered with
insurance.
6110 Materials Supplies -Expenses for operating materials &supplies such as custodial cleaning
supplies, garbage stickers, miscellaneous building supplies, police training supplies, ammunition,
badges, etc.
6111 Supplies -Custodial -Expenses for contracted custodial services at the Recreation Center.
6120 Supplies -Childcare -Expenses for small toys, books, and art supplies for the childcare room
at the Recreation Center.
6130 Supplies -Safety -Expenses for first aid and other miscellaneous safety items for the
Recreation Center.
O
iC?
6141 Office Furniture/Equipment - Expenses for desks, chairs, and other small equipment at the
Recreation Center.
6142 Fitness Equipment -Expenses for fitness balls, bands, mats, cardio equipment, etc. at the
Recreation Center.
6210 Bulk Office Supplies -Expenses for pens, pencils, paper, staples, binders, folders, calendars,
ink, etc.
6250 Gasoline &Oil -Expenses for gasoline and oil used for municipal vehicles.
6270 Small Equipment &Tools -Expenses for equipment and tools used to maintain municipal
equipment and personnel such as body armor, evidence equipment, weed trimmers, shop tools, etc.
6290 Safety &Personal Protection Equipment -Expenses for personal protective equipment
provided to employees such as goggles, boots, chest waders, etc.
6310 Police -Canine Unit -Expenses for training, food, veterinarian bills, etc. for the sworn canine
officer.
6340 Police -Forfeiture Expenses -Expenses that are paid for using police forfeiture funds that
must be tracked separately.
6920 Special Events -Expenses for community festivals and events such as the fireworks,
community pool party, daddy/daughter date night, etc.
6940 Administrative Expenses -Expenses for notary fees, secretary of state fees for vehicles,
county recording fees, holiday lighting, real estate taxes, etc.
6945 Development Expense -Sales tax incentive payments based on the terms of the development
agreement.
6950 Forestry -Expenses for the tree program including trees, watering, chainsaws for trimming,
tree removal, etc.
6960 Miscellaneous Expenses -Expenses for miscellaneous items not previously covered such as
insurance processing fees.
6961 Miscellaneous Refunds -Expenses for refunds of retained personnel deposits that are not
used for development expenses.
6965 Reimbursements -Flexible Spending -
spending accounts for qualified medical expenses.
Expenses paid to employees from their flexible
6970 Distributions -Schools -Permit fees that are collected on behalf of the school districts from
the developer to pay its fair share of public improvements that maybe required because of the new
development. These fees are paid out to the school districts annually.
34
6980 Distributions - Library - Permit fees that are collected on behalf of the library district from
the developer to pay its fair share of public improvements that may be required because of the new
development. These fees are paid out to the library district annually.
6990 Distributions -Fire -Permit fees that are collected on behalf of the fire district from the
developer to pay its fair share of public improvements that may be required because of the new
development. These fees are paid out to the fire district annually.
7100 Bond Principal -Amount paid for principal payment on bonds.
7110 Capital Lease Principal Payments -Amount paid for principal payments on capital leases.
Capital leases are used when the item is going to be purchased when the term of the lease is over.
7200 Bond Interest -Amount paid for interest payments on bonds, which are charges paid on the
principal based on an agreed upon rate.
7300 Fees -Paying Agent -Amount paid to an escrow agent for various filings for the issued bonds.
8100 Land Acquisition -Amount used for the purchase of land.
8200 Buildings -Amounts paid for the acquisition and improvements to municipal buildings.
8300 Equipment -Amount paid for the acquisition of equipment costing $5,000 or more such as
machines, shop equipment, playground equipment, mowers, etc.
8400 Vehicles -Amount paid for the acquisition of vehicles and the necessary equipment to use the
vehicle.
8500 Utility System -Amount paid for the acquisition and improvements to the water and sewer
utility systems.
8600 Streets -Amount paid for improvements to municipal streets.
8800 Park Improvements -Amount paid for improvements to municipal parks.
8900 Public Improvements -Amount paid for the acquisition and improvements to other
miscellaneous municipal capital items.
9510 Depreciation -Amount charged as an expense for an expired portion of a fixed asset.
9901 Transfer -General Fund -Internal Fund Transfers from the Tourism Fund to cover
miscellaneous special events with hotel/motel taxes.
9904 Transfer -Debt Service Fund -Internal Fund Transfers from various City funds to cover
annual bond interest and principal costs for City projects.
9920 Purchase Service -Risk Management -Internal Fund Transfers from General Fund
Departments as well as Water/Sewer Fund Departments and Information Technology Fund to cover
the insurance premiums for McHenry County Municipal Risk Management Agency. These premiums
35
cover unemployment, workers compensation, car insurance, liability, fire, theft, property damage,
etc.
9921 Purchase Service -Billing General Fund - Internal Fund Transfers to the General Fund for
the water and sewer portion of costs that are paid for by the finance department for billing
administrative duties and water/sewer bill mailings.
9922 Purchase Service -Information Technology -Internal Fund Transfer to cover information
technology expenses for all departments within the city. These expenses include salaries and
benefits for Information Technology employees as well as computers, supplies, and software used in
all City departments.
9923 Purchase Service -Audit Fund -Internal Fund Transfer to cover the external auditing annual
fees for all funds within the City.
9930 Transfer -Water/Sewer Fund -Internal Fund Transfer to the Water and Sewer Divisions to
cover Utility Division expenses.
9936 Transfer -Utility Improvement Fund -Internal Fund Transfer from the Water and Sewer
Divisions to cover Capital expenses for the Utility System.
9942 Transfer -Capital Improvements Fund -Internal Fund Transfer from the General Fund
Departments to cover capital charges for items that are over $10,000 and have a useful life of over 5
years.
9944 Transfer -Band Fund -Internal Fund Transfer from the General Fund to cover the music in
the park weekly event. This covers the expenses for the municipal band as well as community bands
that perform.
9945 Transfer -Civil Defense Fund -Internal Fund Transfer from the General Fund for expenses
to train personnel and maintain the early warning system equipment to protect and defend the City
from natural disasters or man-made environmental disasters through early warning and public
notification systems.
9946 Transfer -Capital Equipment Fund -Internal Fund Transfer from the General Fund
Departments to cover capital vehicle and equipment charges for items that are over $10,000 and
have a useful life of over 5 years.
36
i
ot Mittto I i i
Summary of Proposed Revenues -Ali Funds
1
2
A B C D E F
••2018/19 All Funds
3
Total
Net
4
Revenue
Transfers
Revenue
5
General Fund
$22,309,740
$599,934
$21,709,806
6
7
Special Revenue Funds
8
Band Fund
12,000
12,000
0
9
Civil Defense Fund
81000
81000
0
10
Alarm Board Fund
200,500
0
200,500
11
Audit Fund
38,787
12,361
263426
12
Annexation Fund
85,200
0
853200
13
Motor Fuel Tax Fund
7001044
0
7001044
14
Developer Donations
130,000
0
130,000
151
Developer Donations (Parks)
270,000
0
270,000
161
TIF Fund
401,000
0
401,000
17
Pageant Fund
11300
0
11300
18
Tourism Fund 176,000 0 176,000
Total Special Revenue Funds 21022,831 32,361 1,990,470
19
20
21
Capital Project Funds
22
Recreation Center Construction Fund
692,500
0
692,500
23
Special Service Area #1A
0
0
0
24
Special Service Area #4
16,847
0
16,847
25
Capital Improvements Fund
11000
0
11000
26
Local Streets Improvements
0
0
0
27
Capital Equipment Fund 0 0 0
Total Capital Project Funds 710,347 0 710,347
28
29
30
1 Debt Service Funds
31
1 Debt Service Fund 11657,068 1,636,743 20,325
Total Debt Service Funds 11657,068 11636,743 209325
32
33
34
Proprietary Funds
35
Public Works - Water
21340,572
0
21340,572
36
Public Works - Wastewater
71724,718
0
71724,718
37
Public Works - Utility
980,938
980,938
0
38
Capital Development Fund
371,000
0
371,000
39
Marina Operations Fund
40,200
0
40,200
40
Utility Improvements Fund 26,847 16,847 101000
Total Proprietary Funds 11,484,275 997,785 10,486,490
41
42
43
Internal Service Funds
44
Risk Management Fund
729,291
698,291
31,000
45
Information Technology Fund
634,255
634,255
0
46
Health Insurance Fund 3,424,222 2,940,798 483A24
Total Internal Service Funds 41787,768 41273,344 514,424
47
48
49
Fiduciary Funds
501
1
Medical Flexible Spending Fund
60,000
0
60,000
51
Revolving Loan Fund
11650
0
11650
52
Police Pension Fund
31399,703
210191703
11380,000
53
Development Escrow Fund
25,000
0
25,000
54
Retained Personnel Fund 751000 0 75,000
Total Fiduciary Funds 3,5619353 25019703 1,541,650
55
56
57
Comparison of Budget vs. Proposed Revenues - All Funds
1Revenue
A
Budget
1 B
1C
D
E
2
3
Pecent
4
2017118
2018/19
Difference
Change
5
General Fund
$21,830,317
$22,309,740
$479,423
2.2%
6
7
Special Revenue Funds
8
Band Fund
12,000
12,000
0
0.0%
9
Civil Defense Fund
81000
81000
0
0.0%0
10
Alarm Board Fund
190,250
2009500
10,250
5.4%
11
Audit Fund
381504
38,787
283
0.7%
12
Annexation Fund
155,200
85,200
(70,000)
45.1%
13
Motor Fuel Tax Fund
695,644
700,044
41400
0.6%
14
Developer Donations
105,000
130,000
25,000
23.8%
15
Developer Donations (Parks)
218,000
270,000
52,000
23.9%
16
TIF Fund
326,000
401,000
75,000
23.0%
17
Pageant Fund
11300
1,300
0
0.0%
18
Tourism Fund 155,050 176,000 20,950 13.5%
Total Special Revenue Funds 11904,948 2,022,831 117,883 6.2%a
19
20
21
Capital Project Funds
22
Recreation Center Construction Fund
601,500
692,500
91,000
15.1%
23
Special Service Area #1A
0
0
0
0.0%
24
Special Service Area #4
16,847
16,847
0
0.0%
25
Capital Improvements Fund
11192,209
11000
(11191,209)
-99.9%
26
Local Streets Improvements
0
0
0
0.0%
27
Capital Equipment Fund 238,370 0 23( 8,370)-100.0%0
Total Capital Project Funds 2,0481926 710,347 (11338,579) -65.3%
28
29
30
Debt Service Funds
31
Debt Service Fund 11661,872 1 1,657,068 4 804 -0,3010
Total Debt Service Funds 11661,872 11657,068 (41804) -0.3%
32
33
34
Proprietary Funds
35
Public Works - Water
21324,072
21340,572
16,500
0.7%
36
Public Works - Wastewater
51131,140
71724,718
21593,578
50.5%
37
Public Works - Uility
7941332
980,938
186,606
23.5%
38
Capital Development Fund
312,000
371,000
599000
18.9%
39
Marina Operations Fund
50,200
40,200
(10,000)
-19.9%
40
Utility Improvements Fund 18,847 26,847 81000 42.4%
Total Proprietary Funds 81630,591 11,484,275 21853,684 33.1%0
41
42
43
Internal Service Funds
44
Risk Management Fund
7281491
729,291
800
0.1%
45
Information Technology Fund
536,087
634,255
98,168
18.3%
46
Health Insurance Fund 31493,712 3,424,222 (69,490) -2.0%
Total Internal Service Funds 4,758,290 41787,768 29,478 0.6%
47
48
49
Fiduciary Funds
50
Employee Flexible Spending Fund
105,000
60,000
(45,000)
42.9%
51
Revolving Loan Fund
21050
11650
(400)
A9.5%
52
Police Pension Fund
31234,219
31399,703
165,484
5.1%
53
Development Escrow Fund
25,050
25,000
(50)
-0.2%
54
Retained Personnel Fund 751000 75,000 0 0.0%
Total Fiduciary Funds 3,441,319 31561353 120,034 3.5%
55
56
57
FIVA11111111116
39
Summary of Revenues and Other Financing Sources - All Funds
2017/18
r. _
2018/19
Dollar Change
70
Change
Property Taxes
513357632
513851632
507000
0.94%
Sales Taxes
971241742
916721507
5477765
6.00%
Intergovernmental Revenue
317137305
315593053
(154,252)
4.15%
Licenses & Fines
112481800
112871300
381500
3.086/.
Services Charges
979291793
12, 695, 572
237651779
27.85%
Interest Income
988,250
11016,200
27,950
2.83%
Bond Proceeds
-
-
-
0.00%
Transfers
10,628,412
915591870
(11068,542)
-10.05%
Other Financing Sources
3,3073329
3,3571248
49,919
1.51%
Total
4412761263
4615331382
212573119
5.10 /
2018/19 Budget Revenues by Source
Other Financin
Sources
7%
Bond
Transfers
20 %
Proceeds
Interest Income'
Services
Charges
27%
2%
Property Taxes
12%
Licenses &Fines
3%
Sales
Taxes
21%
I ntergovernmenta
(Revenue
8%
Summary of Proposed Expenditures - All Funds
1Expense
2
A
B
Budget1
C
D
E
F
G
3
1
Total
Net
4
Budget
Transfers
Bud
et
General Fund
6
Administration
$2,333,449
$78,577
$2,254,872
7
Elected Offices
100,179
6,506
931673
8
Community Development
787,375
63,859
7231516
9
Finance Department
21064,440
843,108
11221,332
10
Human Resources
163,743
89237
1551506
11
Economic Development
3303289
13,482
316,807
12
Police Commission
6;953
0
61953
13
Police Department
91582,015
517,190
91064,825
14
Dispatch Department
21482,908
831623
2,39%285
15
Public Works - Administration
449,515
33,683
4151832
16
Public Works - Streets
31038,640
102,445
23936,195
17
Total
Parks and Recreation
General Fund
2,257,319
231596,825
121,596
11872,306
2135,723
21,724,519
18
19
20
Special Revenue Funds
21
Band Fund
152000
0
15,000
22
Civil Defense Fund
5,300
0
51300
23
Alarm Board Fund
92,000
0
92,000
24
Audit Fund
42,758
0
42,758
25
Annexation Fund
452000
352000
101000
26
Motor Fuel Tax Fund
764,930
397,930
367,000
27
Developer Donations
1303000
0
130,000
28
Developer Donations (Parks)
509,200
0
509,200
29
TIF Fund
303,535
2197035
84,500
30
Pageant Fund
11200
0
1,200
31
Total
Tourism Fund
Special Revenue Funds
114,000
2,022,923
99,000
7501965
15,000
11271,958
32
33
34
Capital Project Funds
35
Recreation Center Construction Fund
1,134,587
158,792
975,795
36
Special Service Area #1 A
0
0
0
37
Special Service Area #4
161847
161847
0
38
Capital Improvements Fund
7732000
0
7731000
39
Local Streets Improvements
0
0
0
40
Total
Capital Equipment
Capital Project Funds
0
1,924,434
0
1753639
0
17748,795
41
42
43
Debt Service Funds
44
Total
Debt Service Fund
Debt Service Funds
1.661,919
11661/919
0
0
1,661,919
1,661,919
45
46
47
Proprietary Funds
48
Public Works - Water
2,775,233
11044,234
1,730,999
49
Public Works - Wastewater
41415,805
718,004
31697,801
50
Public Works - Utility
11068,165
0
1/0682165
51
Capital Development Fund
0
0
0
52
Marina Operations Fund
43,000
0
433000
53
Total
Utility Improvements Fund
Proprietary Funds
0
8,3021203
0
117629238
0
6,5391965
54
55
56
Internal Service Funds
57
Risk Management Fund
8251351
21,210
1 8041141
58
1 Information Technology Fund
634,256
61857
627,399
59
1 Health Insurance Fund
Total Internal Service Funds
3,429,222
41888,829
0
287067
31429,222
438603762
60
61
62
Fiduciary Funds
63
Employee Flexible Spending Fund
603000
0
601000
64
Revolving Loan Fund
0
0
0
65
Police Pension Fund
2,0502367
31700
210469667
66
Development Escrow Fund
25,000
259000
0
67
Retained Personnel Fund 75,000 0 75,000
Fiduciary Funds 2,210,367 28,700 2 1811667
All Funds $44,607t5OO
68
69
70Total
41
Comparison of Budget vs. Proposed Expenditures - All Funds
1Expense
A
B
Budget
C
D
E
F
G
H
I
2
3
4
5
Total
Total
6
Expenditures
Expenditures
Percentage
7
2017/18
2018/19
Difference
Chan
e
8
General Fund
9
Administration
$1,4391880
$2,333,449
$893,569
62,06%
10
Elected Offices
100,986
100,179
(807)
-0.80%
11
Community Development
851,538
7879375
(645163)
-7.53 %
12
Finance Department
31392,587
21064,440
(1,328,147)
-39.15%
13
Human Resources Department
0
1633743
163,743
0.00%
14
Economic Development Department
0
330,289
3303289
0,00%
15
Police Commission
61953
61953
0
0.00%
161
Police Department
912901024
9,5821015
2913991
3,14%
17
Dispatch Dapartment
21471,052
21482,908
11,856
0.48%
18
Public Works - Administration
446,466
4491515
31049
0,68%
19
Public Works - Streets
31001,082
31038,640
37,558
1,25%
20
Total
Parks and Recreation
General Fund
2/2581055
23,258,623
21257,319
23,596,825
736
3382202
.0,03%
1,45%
21
22
23
Special Revenue Funds
24
Band Fund
15,000
15,000
0
0,00%
25
Civil Defense Fund
51300
5$00
0
0,00%
26
Alarm Board Fund
923000
92,000
0
0,00%
27
Audit Fund
41,715
422758
11043
2.50%
28
Annexation Fund
45,000
45,000
0
0,00%
29
Motor Fuel Tax Fund
786,889
764,930
(21,959)
-2.79%
30
Developer Donations
105,000
130,000
25,000
23.81%
311
Developer Donations Parks
306,700
509,200
2023500
66,03%
321
TIF Fund
302,235
303,535
11300
0.43%
33
Pageant Fund
12100
11200
100
9,09%
34
Total
Tourism Fund
Special Revenue Funds
90,000
11790,939
114,000
2,0221923
24.000
231,984
26.67%
12,95%
35
36
37
Capital
Project
Funds
38
Recreation Center Construction Fund
958,990
1,1341587
1751597
18,31%
39
Special Service Area #1A
0
0
0
0,00%
40
Special Service Area #4A
161847
16,847
0
0,00%
41
Capital Improvements Fund
11322,209
7733000
(5495209)
-41.54%
42
Local Street Improvements Fund
0
0
0
0,00%
43
Total
Capital Equipment Fund 2381370
Capital Project Funds 21536,416
0
11924,434
23( 8,370)
(6113982)
A00.00%
-24.13%
44
45
46
Debt Service Funds
47I
Total
Debt Service Fund 1,666,722
Debt Service Funds 1,6660722
1
1 1/6612919
11661,919
4 803
(41803)
-0.29%
-0.29%
48
49
50
Proprietary Funds
51
Public Works- Water
21710,089
23775,233
65,144
2,40%
52
PublicWorks- Wastewater
42703,115
41415,805
(287,310)
-6.11%
53
PublicWorks- Utility
11057,504
1,0680165
101661
1,01%
54
Capital Development Fund
0
0
0
0.00%
55
Marina Operations Fund
46,000
43,000
(3,000)
-6,52%
56
Total
Utility Improvements Fund
Proprietary Funds
0
8,5161708
0
81302,203
0
(214,505)
0,00%
-2,52%
57
58
59
Internal Service Funds
60
Risk Management Fund
727,942
825$51
97,409
13.38I
61
Information Technology Fund
536,087
634,256
98,169
18,31%
62
Total
Health Insurance Fund
Internal Service Funds
3,377,801
43641,830
3,429,222
41888,829
51,421
246,999
1.52%
5,32 %
63
64
65
Fiduciary Funds
66
Employee Medical Flexible Spending Fund
1053000
60,000
(45,000)
-42,86%
67
Revolving Loan Fund
0
0
0
0.00%
68
Police Pension Fund
2,011,404
21050,367
38,963
1,94%
69
Development Escrow Fund
25,000
25,000
0
0,00%
70
Retained Personnel Fund 75,000 75,000 0 0.00%
Total Fiduciary Funds 21216,404 21210,367 (61037) -0.27%
71
72
73
42
enditures by Function - All Funds
General Government
21885,346
-
311491240
(160,200)
Peent
219891040
-5.09%0
Public Safety
11,720,746
1313201586
1316157030
2941444
2.21%
Public Works
10,910,981
1011041060
10,0411992
(62,068)
-0.61%
Culture and Recreation
21314,459
215881042
2,601,918
13,876
0.54%
Capital Projects
51504,831
2,5041879
3,446,500
941,621
37.59%
Comm. & Econ. Dev.
9961900
11051,032
113392823
2881791
27.48%
Debt Service
116531799
116661722
116612919
(41803)
-0.29%
Other
318591574
4,190,
051
41293,363
1033312
2.47%
Total
39,
846,
636
38,
574, 612
39, 989,
585
1,414, 973
3.67%
other 2018/19 Budget
11%� Expenditures by Function*
Debt Servic
4%
Comm. &Econ.
Dev. Capital
3% Projects
9%
Culture and
Recreation
7%
PublicWo
25%
*Note: Total does not include interfund transfers
Genera I
Government
7%
Public Safety
34
43
mvs
L
�r.
General Fund Revenues, Expenditures & Fund Balance Summary
General Fund Overview
The General Fund represents the core revenue and expense fund for municipal functions. General
Fund Revenues are comprised of Intergovernmental sources such as Property Tax, State Sales Tax,
Local Sales Tax, State Income Tax, State Replacement Tax, State Pull Tabs, Inter Track Wagering, State
Communications Tax, and State Grants; Local Sources such as Franchise Fees, Licenses and Permits,
Fines and Forfeitures, Charges for Services, and Interest Income; and Miscellaneous sources such as
Donations and Reimbursements for Services.
General Fund Expenses include personnel, contractual, supplies and other operating expenses
related to the following operating budgets - Administration (100.01), Elected Officials (100.02),
Community Development (100.03), Finance (100.04), Human Resources (100,05), Economic
Development (100.06), Police Commission (100.21), Police (100.22), Police Dispatch (100.23), Public
Works -Administration (100.30), Public Works -Streets (100.33), and Parks and Recreation (100.41).
Please reference the spreadsheet found at the end of this section titled "General Fund -Revenues,
Expenditures and Fund Balance Summary"for the following discussion.
General Fund Revenues, Expenditures and Fund Balance Summary
In summary, FY18/19 proposed General Fund Revenues and Expenditures reflect total revenues of
$22,309,740 (an increase of $479,423 or 2.2%) and total operating expenditures of $22,170,675 (an
increase of $356,031 or 1.63%, less capital) - a difference (revenues over expenditures) of $139,065.
While specifics will be detailed in the discussion that follows, the primary reasons for increases in
revenues relate to projections for State and Local Sales Taxes (an increase of p 41,765 combined),
the projection for Video Gaming revenues (an increase of $55,000), the projection for Franchise Fees
revenues Can increase of'$20,000) and Reimbursements related to charges for services from parks
programs and internal fund transfers (an increase of $51,292). These are offset by decreases to
Property Tax revenues due to the Road & Bridge levy ($25,000), State Income Tax receipts
($140,358), and Fines and Forfeiture revenues ($29,000).
In regards to expenditures, Personnel costs are proposed to increase by $307,428 (1.85%) due
primarily to the union contracts ($185,427), an estimated 2.75% increase to non -bargaining unit
employees ($82,678), and Police Pension costs ($145,484). These increases were offset by the
decreased benefit costs due primarily to moving health insurance to the pooled insurance group
($109,768). It should be noted that a portion of the Police Dispatch Center costs are offset by General
Fund Revenue increases in the form of reimbursements (Row 22) from dispatch partner agencies
and customers. Notably, FY18/19 General Fund Expenditure proposed Contractual costs are $32,247
(1.68%) lower than FY17/18 and Supply costs reflect an increase of $14,585 (1.84%).
Finally, the FY18/19 General Fund Expenditures includes $1,406,500 in capital expenses that will be
funded though the General Fund Balance. All other capital expenses budgeted in FY18/19 are in the
Capital Improvement Fund Budget and will be funded with the General Fund - Assigned for Capital
balance which was transferred with the FY16/17 audit less the amount spent on FY17/18 expenses.
Further, carrying the General Fund Revenue and Expenditure estimates through the end of the fiscal
year (Apri130th), it is projected that the total General Fund balance will be $7,549,339 (Column J, Row
45
43). As defined in the Fund Balance and Reserve Policy this would result in a 120 day General Fund
Balance Reserve of $7,283,317 and a General Fund Assigned to Capital amount of $266,022. As
identified above this fund balance amount will be reduced by $1,406,500 for capital improvement
projects (Timothy/Clover Water Main Improvements, Green Street Bridge Rehabilitation, Lakeland
Park Drainage Improvements). A note of caution however, the FY17/18 Estimated General Fund
Revenues and Expenditures are that, estimates, and economic factors or unforeseen expenses could
change these dollar amounts before the end of the year.
General Fund Revenues - FY17/18 Budgeted, FY17/18 Estimated, FY18/19 Proposed
General Fund Revenues are derived from a number of sources - taxes, video gaming, licenses and
permits, fines and forfeitures, franchise fees, charges for services, reimbursement for services,
donations, interest income, and other miscellaneous sources. While some revenues, like Property
Taxes, can be clearly identified and anticipated based on the adoption of the annual property tax levy,
or based on historical performance, other revenues - such as Sales Taxes and State Income Tax - can
be volatile based on economic trends.
If anything, the economic recession of 2007/2008 sent a message to local governments that
economic -based revenues are not guaranteed and can fluctuate based on the economy and
disposable income. Actions taken at the local level to plan/adjust from this event resulted in the
establishment of a "new norm" for future budget considerations. Further, given the budget crisis of
the State of Illinois provides for continuing fiscal uncertainty since decisions at the state level can
have an immediate and devastating impact on state -shared revenues. This has been realized through
recent actions such as delayed state -shared revenue payments resulting in municipalities having to
utilize fund balances or make operational adjustments to decrease expenditures, and in analyzing the
State's more recent threat of reducing the Local Government Distributive Fund (LGDF) by 50%. The
current legislation reduces the Local Government Distributive Fund (LGDF) distribution by 10% and
charges a 2% administrative fee for local sales tax collection. This results in approximately a
$178,000 reduction in General Fund revenues.
As such, in estimating General Fund Revenues for the purpose of budget development, the City
Administration takes a conservative approach in order to: 1) ensure that General Fund Revenue
projections are not overstated, to avoid deficit spending and the need to utilize the General Fund
reserves (e.g., 120 day unassigned fund balance); 2) limit excessive increases in operating
expenditures; and 3) maintain a financial "buffer", in the form of an Unassigned General Fund
Reserve, to protect the City from future unforeseen economic threats. Utilizing this philosophy, the
City Administration then considers past revenue performance, current economic trends, local
economic conditions, and economic forecast models developed by the Illinois Municipal League
(IML) for use by local governments in developing revenue projections for the purpose of budget
development.
FY17/18 Budgeted Revenues (Column I)
In FY17/18, total budgeted General Fund Revenues were $21,830,317. Of this, $4,967,359 (22.8%)
was from Property Taxes, $7,176,624 (32.9)% was from the City's 1% share of the State Sales Tax,
$11948,118 (8.9%) was from the .5% Local Sales Tax, and $2,726,192 (12.5%) came from the City's
share of the State Income Tax. Revenues derived from these four (4) sources were budgeted at
$16,818,293 or 77.1% of total General Fund Revenues. Of the remaining $5,012,024 (22.9%) in
budgeted General Fund Revenues, $1,163,842 (5.3%) were from Charges for Services, $2,043,382
(9.4%) from Reimbursement for Services, $393,300 (1.8%) from Fines and Forfeitures, $367,500
(1.79/o) from Licenses and Permits, $325,000 (1.50/o) from Franchise Fees, $375,000 (1.7%) from
Video Gaming, and the remaining $344,000 (1.5%) came from all other sources combined.
FY17/18 Estimated Revenues (Column J)
The following estimated revenues are based on 10-months of actual revenues and then projected
through the remainder of the fiscal year (April 30, 2018). Unfortunately, in some cases this
estimation is more difficult than simply dividing 10-month actual by 10 and multiplying by 12
because of when specific revenues are received. Further, FY17/18 Actual revenues will not be known
and confirmed until approximately 2-3 months (June -July) after the close of the fiscal year due to the
timing involved with the receipt of state -shared revenues and, ultimately, the completion of the
annual audit in September/October 2018, 4-5 months in to the new budget year.
At this time, estimated General Fund Revenues are projected to be $22,199,678 or $369,361 (1.7%)
higher than FY17/18 Budgeted revenues of $21,830,317. This reflects an estimated increase of
$280,691, or 1.3%, from FY16/17 Actual revenues of $21,918,987.
Notably, FY17/18 Estimated Revenues, when compared to FY16/17 Actual revenues and FY17/18
Budgeted revenues, highlight the following:
• (Row 10) State Sales Tax revenue is projected to be $496,009 (6.9%) higher than budgeted
and $410,661 (5.7%) higher than the FY16/17 Actual amount.
• (Row 11) Local Sales Tax revenue is projected to be $36,751 (1.9%) higher than budgeted
and $39,263 (2.0%) higher than received in FY16/17.
• (Row 10 +Row 11) Combined, total Sales Tax revenue is estimated to be $532,760 (5.8%)
higher than budgeted and $449,924 (4.9%) higher than the FY16/17 Actual. State Sales Tax
have shown significant signs of an economic recovery, but are showing signs of "leveling off'
in the upcoming years. Also, Local Sales Tax revenues do not include the sale of licensed or
titled items - such as cars, boats, motorcycles, etc. As such, while the economic recovery and
resulting increase in the sale of licensed vehicles had a positive impact on the City's portion
of the State Sales Tax, this aspect has had no impact on Local Sales Tax revenues.
• (Row 12) State Income Tax receipts are estimated at $296,912 (10.90/6) lower than budgeted
and $115,687 (4.6%) lower than FY16/17.
• (Row 171 Video Gaming revenues are estimated to be $429,570, or $54,570 (14.6%) higher
than budgeted and $2,410 (0.6%) lower than FY16/17.
• (Row 20) Fines and Forfeitures revenues are estimated to be $33,265 (8.5%) lower than
budgeted due to lower traffic fine receipts and $244,836 (40.5%) lower than FY16/17 due to
one-time seizure funds that were received from the federal government for services provided
by the McHenry Police Department.
• (Row 22) Reimbursements for services revenues are estimated at $101,332 (5.0%) higher
than budgeted and $817,483 (61.6%) higher than FY16/17. This is primarily due to the
dispatch consolidation and cost reimbursements by partner and customer agencies for
dispatch services.
47
In summary, FY17/18 Estimated Revenues are projected at $369,361 (1.70/6) higher than budgeted
primarily due to State and Local Sales Tax receipts and Reimbursements directly related to the
consolidation of dispatch services. When compared to FY16/17 Actual revenues, total General Fund
Revenues increased $280,691 (1.3%).
FY18/19 Proposed Revenues (Column K)
FY18/19 Proposed General Fund Revenues represent an increase of $479,423 (2.2%) from FY17/18
Budgeted revenues and an increase of $390,753 (1.8%) from FY16/17 Actual revenues. Highlights
A changes to General Fund Revenues proposed for FY18/19 include:
• (Row 9) Based on Council action to freeze the property tax levy and the recent actions of
Nunda Township Road District, Property Tax revenues are proposed to decrease by $25,00
(0.5%) from the FY17/18 Budgeted amount.
• (Row 10) State Sales Tax revenues are proposed at $7,699,625, $523,001 or 7.29% higher
than FY17/18 Budget.
• (Row 11) Local Sales Tax revenues are proposed at $1,972,882, an increase of $24,764 (1.3%)
from FY17/18.
• (Row 10 +Row 11) Combined State and Local Sales Tax revenues are proposed at $9,672,507,
an increase of $547,765 (6.0%) from the FY17/18 Budget amount.
• (Row 12) State Income Tax revenues are proposed at $2,585,834, a decrease of $140,358
(5.15%) from FY17/18.
• (Row17) Video Gaming revenues are proposed at $430,000, a $55,000 (14.7%) increase from
FY17/18 Budget amount.
• (Row 20) Fines and Forfeitures revenues are proposed to decrease by $29,000, or 7.37%
frOM the amount budgeted in FY17/18.
• (Row 21) Charges and Services revenues are proposed to increase by $51,292, or 4.41%from
the amount budgeted in FY17/18 due to charges for parks and recreation programs as well
as internal fund transfers.
• (Row 22) Reimbursements related to the full opening of the Police Dispatch Center on May 1,
2017 and the resulting revenues derived from partner and customer agencies served through
this facility are proposed to increase $7,224 or 0.35%.
In summary, FY18/19 Proposed Revenues are $479,423 (2.2%) higher than budgeted in FY17/18
and $110,062 (0.5%) higher than FY17/18 Estimated revenues. The primary reasons for the
proposed increase an increase in the City's portion of the State Sales Tax ($523,001), a proposed
14.7% increase in Video Gaming revenues ($55,000), and an increase in Charges of Services
Revenues (51,292). These increases are offset by reductions to Property Tax revenues of $25,000
(0.50%), State Income Tax receipts of $140,358 (5.15%), and Fine and Forfeitures of $29,000
(7.37%).
General Fund Expenditures - FY17/18 Budgeted, FY17/18 Estimated, FY18/19 Proposed
General Fund Expenditures include personnel, contractual, supplies and other operating expenses
related to the following operating budgets - Administration (100.01), Elected Officials (100.02),
Community Development (100.03), Finance (100.04), Human Resources (100.05), Economic
Development (100.06), Police Commission (100.21), Police (100.22), Police Dispatch (100.23), Public
Works -Administration (100.30), Public Works -Streets (100.33), and Parks and Recreation (100.41).
In addition, the General Fund is the funding source for all capital improvement and capital equipment
projects that are not related to water and/or sewer improvements or maintenance projects as these
are funded through the Water and Sewer Fund and Capital Development Fund. General Fund capital
improvement and capital equipment projects include any project over $10,000 related to public
facility improvements and maintenance items, police vehicle and equipment acquisition or
replacement, non -police vehicle acquisition or replacement, park improvements, and
stormwater/drainage improvements. As a frame of reference, the FY18/19-FY22/23 Capital
Improvement Program contains more than $55 million in General Fund projects, including more than
$44 million in local street improvements. Without a doubt, the needs identified in the Capital
Improvement Program far exceed the funding available for them.
Finally, the General Fund also serves as a funding source for revenue transfers to other municipal
accounts found within Special Revenue Funds, Debt Service Funds, Internal Service Funds, and
Fiduciary Funds.
FY17/18 Budgeted Expenditures (Column I)
In FY17/18 budgeted expenditures were $23,258,623, budgeted capital expenditures were
$1,443,979. Budgeted operating expenditures were $21,814,644 for FY17/18. While this amount
reflected a decrease of $1,695,432 (6.8%) from the FY16/17 Actual expenditures (Column H, Row
35), much of this decrease was due decreased Capital Improvement and Capital Equipment
expenditures.
FY17/18 Estimated Expenditures (Column J)
In general, City Administration -including Department Directors, Superintendents, Managers -
closely monitor expenditures throughout the year to ensure that operating budgets stay within the
approved amounts. Fiscal diligence on behalf of all of these individuals most often results in
expenditures being less than the amount budgeted. This then can be reviewed and adjusted
accordingly as part of the succeeding year budget development.
For FY17/18, operating expenditures are estimated. at $21,833,358, or $18,714 (0.09%) more than
the budgeted amount of $21,814,644. A budget amendment was completed in the dispatch budget
for $72,292 eliminating the budget overage. Highlights of changes to FY17/18 Estimated
Expenditures include:
• (Row 29) Reduced Personnel costs of $152,100 (0.9%) resulting from decreased insurance
costs from the IUOE 150 union as well as the new insurance consortium.
• (Row 30) Contractual costs are estimated at $86,225 (4.5%) more than the original budget.
A budget amendment was completed for the dispatch contractual services account for
$72,292 making the overage only $13,933 which can be attributed to increased street lighting
costs.
L�L'�
• (Row 31) Supply costs are estimated at $85,255 (10.7%) more than budget. This is largely
due to purchases of refuse stickers that are recouped through revenues and the tree program
that was budgeted in FY16/17, but spent in FY17/18 and a grant was received to cover these
expenses.
• (Row 32) Other estimated expenditure are estimated at $6661ess than the original budget.
• (Row 33) Capital Outlay expenditures are $106,361 more than the original budget, but a
budget amendment was completed for $128,684 for roof top units and dispatch equipment.
Note: City Administration anticipates changes to FY17/18 Estimated expenditures due to increases
or decreases in revenues and expenses through the end of the fiscal year.
FY18/19 Proposed Expenditures (Column K)
FY18/19 Proposed operating expenditures represent an increase of $356,031 (1.6%) from the
FY17/18 operating Budget amount of $21,814,644. It is important to note that the FY17/18 Budget
amount included a transfer of $1,429,579 for Capital Improvement and Capital Equipment funding
which was completed with the FY16/17 audit, while the FY18/19 Proposed amount includes
$1,406,500 in funding for capital. Highlights of changes to General Fund Expenditures proposed for
FY18/19 include:
• (Row 29) Personnel costs are proposed at $307,428, or 1.85% higher in FY18/19 than
budgeted in FY17/18. Personnel costs include salaries, overtime, health/dental/life/vision
insurance, FICA, IMRF retirement, and uniforms. There are number of reasons for this
in
crease.
1. Personnel costs related to salaries only for employees covered by collective
bargaining units - IUOE Local 150 (Public Works, Parks employees), FOP Unit 1
(Police Patrol), and FOP Unit 2 (Dispatch) - account for $185,427 of the identified
increase from FY17/18 to FY18/19.
2. Police Pension costs are proposed at $2,019,703, an increase of $145,484. Police
Pension costs are determined by an actuary retained by the Police Pension Board and
are based on a number of factors, including wages, investment rate, and age of the
workforce. The City has committed annually to funding the amount determined by
the actuary in order to meet a required deadline for full funding by 2030.
3. Non -bargaining unit employees and Police Sergeants account for a total of $82,678 of
the Personnel cost increase. Police Sergeants and other non -bargaining employees
receive wage increases based on a combination of the previous year's Consumer Price
Index for All Urban Areas (CPI-U), which was 1.7% in 2017, and an opportunity for
an additional merit increase based on performance evaluations. The target increase
average for FY18/19 for these employees is 2.75%, with some employees receiving
less than this amount and some receiving more. This will be addressed later as part
of the Personnel Summary - Wages discussion.
4. Health insurance costs are proposed to decrease $166,071 due to IUOE Local 150
insurance tier changes as well as joining Intergovernmental Personnel Benefit
Cooperative for all non -bargaining unit employees.
50
• (Row 29) Contractual costs are anticipated to decrease by $32,247 (1.689/o) from the amount
budgeted in FY17/18.
• (Row 30) Supplies expenditures are proposed increase by 1.84% ($14,585) primarily due to
increased forestry costs for trees.
• (Row 31) Other expenditures are anticipated to decrease by $11550 (0.22%).
General Fund -Fund Balance
On February 1, 2016 City Council adopted a new Fund Balance and Reserve Policy that, in summary,
established principles and parameters to which balances for all municipal funds would be defined at
the beginning of each budget period. This policy, which also meets the reporting requirements of
Government Accounting Standards Board (GASB) Statement 54, which requires the formal adoption
of a policy for the classification of fund balances to categories other than "unassigned", was
established to provide financial stability in the various municipal funds, ensure adequate cash flow
for operations, and provide some assurance that the City will be able to respond to emergencies with
fiscal strength.
In regards to the General Fund Fund Balance, specifically, the Fund Balance and Reserve Policy states:
"General Fund -The unrestricted fund balance target should be set at 120 (4 months)
of estimated operating expenditures including those expenditures reported in other
Governmental Funds that receive annual operating transfers, with the exception of
transfers intended to fund capital projects. If the unreserved fund balance falls below
120, a plan will be developed to return to the target balance. If the unreserved fund
balance reaches a low of 90-day (3 months), the plan will be implemented to return to
the fund balance to the target within a reasonable amount of time. One time revenues
shall not be used to fund current operations."
This level of fund balance shall provide the capacity to:
• Offset unexpected downturns in elastic revenues due to fluctuations in the local,
state and national economies or the loss of major sales tax contributor(s);
• Offset negative fiscal changes brought about by action or legislation of another unit
ofgovernment or agency;
• Ensure the continued, timely repayment of debt obligations that the City may have
in the event of a financial downturn;
• Provide a sufficient cash flow for daily financial needs at all times; and,
• Provide a funding source for unanticipated expenditures or emergencies that may
occur.
As identified, the parameters in this policy help to guide the City Administration in the development
of the annual budget by ensuring that the General Fund Budget is presented as balanced, revenues
over expenditures, while maintaining this reserve. Further, the establishment of the target minimum
of 120 days provides clarity in identifying the level of funding that is available - once revenues,
expenditures and fund balance are identified - to address the City's capital needs. In other words,
51
any funds remaining after meeting the operational and reserve needs of the municipality are
"Assigned for Capital."
In reviewing the General Fund Balance as part of this discussion, the FY17/18 Budget includes a
beginning fund balance of $7,303,780 (Column I, Row 6) based on FY16/17 audited financial
information. Based on FY17/18 budgeted revenues and operating expenditures, it was anticipated
that the ending fund balance would be $7,305,053; the ending unassigned 120 day fund balance at
$7,283,317 (Column I, Row 42); with $21,736 (Column I, Row 43) remaining to be assigned for capital
in developing the FY18/19 Budget.
The FY18/19 Budget then identifies a beginning fund balance of $7,549,339 (Column K, Row 6). As
in the discussion above, this amount will most likely change upon completion of the annual audit
however, this is not done until September/October, 4-5 months after the budget is adopted and
implemented. The FY18/19 unassigned and assigned for capital amounts are variable depending on
the amount identified for capital projects (discussed later in this document).
52
A I B I C I D I E I F H I 1 K L M
1 General Fund - Revenues, Expenditures and Fund Balance Sununmy
2
3 : FY18/19 Budget Budget
4Actual Actual Actual Actual Actual Actual Budget
5
44`135,264 6,172,235 7,062,262 8,654,575 10,1S0,308 10,33$848 7,303,780 7,303,780 7,549,339 245,559 3.36%
7
8
9 Property Taxes 5,154,234 5,131,967 5,124,611 5,134,224 5,13%820 5,103,443 4,967,359 41947,812 4,942,359 C25,000)-0.500/
10 State Sales Tax 61498,608 6276,057 6,684,864 6,965,782 71039,037 7,261,972 71176,624 71672,633 7699,625 523,001 7.290/c
11 Local Sales Tax 1,945,024 1,889,994 1,984,108 1,965,987 1,930,507 1,945,606 1,948,118 1,984,869 1 1,972,882 24,764 1,270/c
12 state Income Tax 2,286,926 2,553,914 2,577,574 2,719,568 2,760,806 2,544,967 2,726192 2,429,780 2,585,834 (140,358) -5,150/0
13 stateReplacementTax 65,089 63,090 74,513 7Q909 74,272 77,522 65,000 680634 70,000 51000 7,690/a
14 State Telecommunications Tax 195,439 172,143 163,424 133,945 143,736 143,912 140,000 136,276 135,000 (51000) -3.570/c
15 Pull Tabs 1,724 1,313 1,729 995 14852 34000 1000 0,00%
16 IntertrackWagering 90,434 82,759 65,150 64,814 63,467 54388 6Q000 514750 52,000 ($000) 43.33%
17 video Gaming 31,6W 122,178 211,327 272,108 431,980 375,000 429,570 43Q000 5S,000 14.670/
18 Franchise Fees 219,719 297,253 295,166 306,122 324,114 3S1,301 325,000 35ZS23 345,000 20,000 6.15%
19 Licenses andPerrrdts 331,235 312,976 317,332 323,706 427,998 411097 367,500 343,526 358,000 (9,500) -2.590/0
20 Fines and Forfeitures 467,272 407,230 1 40%760 383,932 406,452 604,871 393,300 360,035 364,300 C2%000) -737%
21 Charges for services 1,24Q897 1209,955 :Ll62x208 1,177,601 34233,119 1,168,023 1163,842 L175,374 1215,134 51,292 4.41%
22 Reimbursement 569,760 427y300 532,910 5571855 752,987 1,327,231 2,043,382 2,144,714 $0501606 71224 0.3S%
23 Interest Income 3,493 R199 21199 Z218 13,508 45,543 25,000 4a671 35,000 10,000 40,00%
24 Donations 1 190555 14,823 17,772 22,402 13,500 12,550 10,000 16,100 10,000 0,00%
25 NEscellaneous 259,125 178,790 241,657 265,599 K212 430,729 43,000 37,911 43,000 0.000/c
26 TOTAL REVENUE 1%348,534 19,059,4S1 1%777,1SS 20y3M986 20,659,643 21,9lagW 23,830,317 22,199,678 22,309,740 479,423 2.200/a
27
28
29 Personnel 12,318,505 12,359,946 12,826,464 13,223,387 13,815,S45 14,782,035 16,5831537 16,431,437 16,89Q965 307,428 1850/C
30 Contractual 1641,108 1,542,668 1,6571086 11696,261 1,910,655 1926,080 1,922,181 2,008,406 1,88%934 (32,247) -168%
31 Suppiies 754,347 841898 812,219 789,214 764,364 861454 793,585 878,840 808,170 14,585 1,84%
32 other S91451 275,634 315,431 441,011 496,698 603,299 710,850 710,184 709,300 C1,550) -0.22%
33 Capital outlay 44,750 3,415 177,462 126,271 130,946 210,601 14,400 120,761 11426,150 1,41:4750 98034820/o
34 Transfers 2,493,402 3,145,863 2,396,180 2,535,109 3,260,456 6,570,586 3,234,070 1,804,491 1,872,306 (1,361,764) -42110/c
35 ToTALExPENDPLURF_S 17,311,S63 18,16%424 1$184842 18,8117253 20o378y664 241954,055 23,258,623 21F954,119 23,59682S 338202 1,45%
36
37 Tam oPERAuNGERPmmnums 145161833 17,416009 17,S00,880 17,847,734 18,749,671 19,947,884 21,814,644 21,833,358 2Z,170,675 356,031 163%
38
39 2,036,971 890,027 1,S92,313 1495,733 280,979 (3,035,068) 1,273 245,559 (1,ZS7,08,5
40
41 2,036,971 89Q027 1,592,313 1495,733 280,979 C3,035,068) 1,273 245,559 (1,287,085)
42
43 6,172,235 7,062,262 9654,575 1Q150,308 10,431287 7,303,780 7305,053 7154%339 6262,254
44 Less Unassigned-120days S,609,S80 5,806,207 1 5,997,898 1 6,223,320 6,775,024 1 7,3031780 7,283,317 7,283,317 _ 7,45Q000
45 Assigned for Capital 562,655 1256,055 2,656,677 3,926,988 3,656,263 21,736 266,022 C11871746)
General Fund Operating Budgets - Overview
This section includes the budgets for all operating departments funded through the General Fund.
General Fund Operating Departments include - Administration (100.01), Elected Officials (100.02),
Community Development (100.03), Finance (100.04), Human Resources (100.05), Economic
Development (100.06), Police Commission (100.21), Police (100.22), Police Dispatch (100.23), Public
Works -Administration (100.30), Public Works -Streets (100.33), and Parks and Recreation (100.41).
While these expenditures have already been summarized, in total, as part of the previous discussion
A General Fund Revenues and Expenditures, the information contained in each of the following
sections will provide details regarding each operating department. The narrative below is a
summary overview of sections that follow.
General Administration (100.01)
Overall, the Administration operating budget is proposed to decrease by $512,931 or 35.62% in FY18/19
(Column K. Row 50 less capital expenses of $1,406,500). As identified earlier, the reason for this significant
decrease is the result of the formation of separate budgets for the Human Resources and Economic
Development functions and the transfer of all related costs into those budget accounts.
Salary/Benefit costs are identified to decrease by a net of $367,369 or 51.6% and Health Insurance
expenditures are proposed to decrease by $41,663, or 39.6%.
Contractual Services expenditures —which includes the mosquito abatement program, participation in the
countywide DiakA-Ride program, and building maintenance for the municipal center are identified for a
net decrease of $107,810 (23.29%) due to a decrease in the amount of funding that the City pays for public
transportation services as part of the DiakA-Ride Program in the Contractual line item (Row 21), and
reclassifying expenses for Telephone Costs (Line 24) to the Information Technology Budget.
Corporate Legal Fees (Row 22) include the City Attorney, Traffic Attorney and Collective Bargaining
representation and are identified to decrease $25,000 in FY18/19.
Supplies expenditures are proposed to increase by $8,250 (Column K, Row 39) due to increased garbage
sticker purchases and Other expenditures —which includes Administrative Expenses and internal transfers
for Risk Management and Information Technology — is proposed to decrease by $4,339 (Column K, Row
45).
Elected Officials (100.02)
The Elected Officials budget is proposed for an $807 decrease, or 0.8%, based on transferring telephone
costs to the Information Technology budget (Column K, Row 37).
Community Development (100.03)
The Community Development budget is proposed at a decrease of $64,163, or 7.53% (Column K, Row 44).
Salary/Benefit costs are budgeted to decrease by $43,416 (6.05%), including decreases in Health, Life and
Dental Insurance. Contractual Services are identified to decrease by $10,800 (20.87%). Approximately
75% of property maintenance costs are recovered through liens. Supplies will increase by $250 (3.03%),
while the internal transfer for Information Technology will decrease by $8,647. Most of the decreases
55
within this department are shifts of employees and expenses to the Economic Development Department
as some costs were shared in previous budgets.
Finance (100.04)
Salary/Benefit costs are anticipated to increase by $96,974 (23.8%) due to reclassifying an employee from
the Parks Department and an office employee going to full-time status, Contractual costs decrease by
$2,300, and Supplies remain flat.
Human Resources (100.05)
All Salary/Benefit costs for the Human Resource Director have been reclassified to the Human Resources
budget as well as expenses for Wellness, Medical Services, and Training.
Economic Development (100.06)
Salary/Benefit costs for the Director of Economic Development were reclassified from the General
Administration budget, the Economic Development Coordinator was reclassified from Community
Development, and the Economic Development Assistant was reclassified from the Parks
Department. Expenses were added for Zoning Maps and Comprehensive Plan updates, and
training/conferences/seminars and a portion of these expenses were reclassified from the Community
Development budget.
Police (100.22)
The Police budget is proposed at an overall increase of $291,991, or 3.14% from FY17/18. While costs
have been reduced in many line items, Salary/Benefit costs are identified to increase by $293,443 due to
adjustments to FOP bargaining unit salaries ($147,940), a decrease to health insurance costs ($54,442)
and, most significantly, the transfer for Police Pension of $145,484. As discussed earlier Police Pension
costs are determined by an actuary retained by the Police Pension Board and are based on a number of
factors, including wages, investment rate, and age of the workforce. The City has committed annually to
funding the amount determined by the actuarial in order to meet a required deadline for full funding by
2030.
Dispatch Center (100.23)
FY18/19 represents the second full year of operation for the fully developed, and staffed, dispatch
center. The FY17/18 budget established the baseline budget for the dispatch center moving forward. The
proposed FY18/19 budget has been presented and approved by the partners of the dispatch center. The
total amount proposed for the dispatch center in FY18/19 is $2,482,908. As a reminder, this amount is
offset by more than $1.7 million as a result of the partnerships with the City of Woodstock, City of Harvard
and McHenry Township Fire Protection District and through charges for dispatch services paid by
customers of the dispatch center. These are reflected as General Fund Revenues and included in Row 22
of the General Fund —Revenues, Expenditures and Fund Balance Summary sheet.
Public Works Administration (100.30)
The overall Public Works Administration budget is proposed to increase by $3,049 (0.68%) primarily due
Salaries/Benefits.
56
Public Works Streets (100.33)
The FY18/19 Public Works Streets budget is proposed to increase by a total of $37,558 (1.25%) from
FY17/18. Salaries/Benefits are proposed to decrease by 18,041 due to the IUOE Insurance premiums
decreasing. Additionally, Contractual (Row 21) costs have been increased to account for contract
mowing, Street Lighting Costs (Row 27) have been increased by $35,000 and Materials and Supplies costs
are proposed higher due to increasing the forestry budget.
Parks and Recreation (100.41)
As a reminder, the Parks and Recreation budget encompasses not only personnel and other operational
costs of the Parks Maintenance Division, which includes bargaining unit employees, but also all
programming expenses related to the Recreation Division not associated with the McHenry Recreation
Center. Revenues from recreation programming, reflected in General Fund Revenues, offset many of
these costs.
As proposed in FY18/19, Salary/Benefit costs are identified to decrease by a total of $18,082 (1.23%);
Contractual Services to increase by $5,997 (1.35%); Supplies to increase by $12,300 (6.42%); and, Other
costs to decrease by $951. The overall Parks and Recreation budget is proposed at 0.03% lower.
57
Personnel Summary of Wages - All Funds
Overview
Prior to presenting a summary of General Fund operating departments it is important to define that the
'4010 Salaries" budget line items in each operating budget include more than just employee wage costs
but also includes annual payouts for sick time per the City's Personnel Manual. In addition, the 4010 line
item for all but the Police budget is a combined total of both bargaining and non -bargaining employees
within that specific budget. As such, the 4010 line items in each operating budget show different
percentage variances.
In an effort to provide the reader with a more accurate summary of wages, staff has developed the
attached Personnel Summary — Wages Only (All Funds) sheet. This sheet includes a summary of wages
only (e.g., no benefits, sick day buyouts, etc.) as an overview of all municipal departments (Rows 6 —12),
and identifies the net then by operating budget and/or fund (Rows 15 —73). Each summary presents non -
bargaining and bargaining employees separately, and identifies the FY17/18 Budgeted wages (Column E),
FY17/18 Estimated wages (Column F), FY18/19 Proposed wages (Column G), the monetary variance from
the FY17/18 Estimated wages and the FY18/19 Proposed wages (Column H), and the percent variance
from the FY17/18 Estimated wages to the FY18/19 Proposed wages (Column 1). Note that Columns H and
I is a comparison of estimated to proposed wages as distinct from a budgeted to proposed comparison
since the FY18/19 Proposed wages are based on an increase from the FY17/18 Estimated wages. In
general, significant increases or decreases in dollar amounts and percentages, as identified, are the
result of employee reassignment or reclassification or increases and decreases in the actual number of
employees.
One example of this is the decrease in General Administration (Rows 16, 18). Based on the creation of
separate budget accounts for Human Resources and Economic Development in FY18/19, the salaries for
the Human Resources Director (Row 32) and salaries for the Director of Economic Development, Economic
Development Coordinator, and an Economic Development Office Assistant (Row 36) were moved into the
corresponding budgets. An example of a significant increase is in the Finance Department (Row 27) which
is the result of the reclassification of an office employee from the Parks Department (Row 65).
Non -Bargaining Unit Employees
FY18/19 is the third year that non -bargaining employee wages are to be determined based on a
combination of an identifiable "Cost of Living Adjustment" (COLA) in the form of the previous calendar
year's Consumer Price Index for All Urban Areas (CPI-U) and merit. Previously, (and before the 2007/2008
recession), non -bargaining employees received automatic "step" adjustments each year (which were in
the range of 3% - 4%) and a COLA increase. While annual evaluations were undertaken, the actual amount
of wage increase was not merit -based.
The Consumer Price Index (CPI) is a measure of the average change in prices over time in a fixed market
basket of goods and services. The CPI for All Urban Consumers, or CPI-U, applies to approximately 88%
of the nation's population, including McHenry County. CPI-U is an economic indicator and is the most
widely used measure to determine inflation and indexation (i.e., adjusting income payments). As a
component of McHenry's compensation system for non -bargaining unit employees, the CPI-U ending in
December of each year, as determined by the United States Bureau of Labor Statistics, serves as the base
salary increase the succeeding municipal fiscal year (May 111). To be eligible for this base increase an
employee must receive an overall average of at least 3.0 out of 5.0 on the Annual Employee Performance
Evaluation. Individuals falling below a 3.0 are not eligible for a CPI-U adjustment and are placed on a
performance improvement plan. The CPI-U average since 1992 is 2.128% and the CPI-U for the period
ending December 2017 is 1.7% (down from 2.1% from the previous December).
In addition, as identified above, non-bargang employees are also eligible for a merit increase based on
the results of annual performance evaluations. This is a percentage of salary over and above the CPI-U
wage adjustment and the amount of merit available varies based on funding identified in the budget.
Because performance evaluations are not completed until after the budget process an overall average for
non -bargaining unit employees is used for the purpose of developing the budget. For FY18/19 this amount
is identified at 2.75%. This would provide for a 1.7% CPI-U adjustment with an additional average merit
increase of 1.05%. Therefore, most non -bargaining unit rows will show "2.75%" as the percent variance
from FY17/18 Estimated to FY18/19 Proposed. As described earlier, percentages higher or lower than the
2.75% are the result of specific changes within that department resulting in an increase or decrease to the
FY17/18 Estimated amount upon which the FY18/19 Proposed amount is based.
The FY18/19 Budget, as proposed, includes a net increase (CPI-U +Merit) for all non -bargaining unit
employees, including police Sergeants, of $69,046 (Column H, Rows 7 + 8) from the FY17/18 Estimated
amount. Of note, the FY18/19 Proposed amount for non -bargaining employees and police sergeants
($4,345,773 — Column G, Rows 7 + 8) is an increase of only $92,489 (2.2%) from the FY17/18 Budget
amount of $4,253,284 (Column E — Rows, 7 + 8).
Bargaining Unit Employees
Unlike non -bargaining employees, bargaining unit employee wages are not based on merit or the CPI-U.
Rather, increases for IUOE 150 (Public Works, Parks), FOP Unit 1 (Patrol) and FOP Unit 2 (Dispatchers,
Records Clerks, CSOs) are based on step increases included in their respective collective bargaining unit
agreements and negotiated "Cost of Living Adjustments" (COLA). As such, the percentages identified for
bargaining unit wages are the result of approved contractual agreements. Significant increases (such as
FOP Unit 2) are the result of an increased number of employees or in the transfer of employees from one
operating division to another (such as Public Works —Streets and Water, Sewer, Utility).
Whether bargaining ornon-bargaining, the dollar amounts shown on this sheet are included in the "4010
Salaries" line items of the operating department budgets as presented below.
59
A
B C D
E
F
G
H
I
1
Personnel Summary - Wages Only (All
Funds)
2
3
4Budgeted
5
Estimated
Proposed.m
Est (S)
from Est
6
7
Non -Bargaining 3,542,714 3,566,157 1615,659 49,502 1.39%
Police Sergeants 7100570 710,570 730J14 19,544 2.75%
Bargaining - IUOE ISO 2,608,635 2,530,0SS 2,584,595 54540 216%
Bargaining - FOP Unit 1 3,069,128 1074,903 1167,877 92,974 3.02%
1 Bargaining - FOP Unit 2 1442,620 1456293 1,498,095 41,802 2.87%
TOTAL OVERALL WAGES 11373,667 11337,978 11,596.340 258,362 2.28%
8
9
10
11
12
13
14
15
16
Non -Bargaining 521367 519,905 221,606 (298299)-57.38%
Bargaining - IUOE 150 5S,064 54,930 46,255 (8,67S)-15*79%
TOTAL GENERAL ADMINISTRATION 5766431 574,835 267,861 (306,974) -53AO%
17
18
19
20
21
22
Non -Bargaining 502,291 1 482,405 I 468,448 (11957) -189%
TOTAL COMMUNITY DEVELOPMENT 502291 482,405 468,448 (11957) -2,89%
23
24
25
26
27
28
Non -Bargaining 279211 285.308 341,251 55,943 19.61%
TOTAL FINANCE 279211 285308 341251 55,943 19.61%
29
30
31
32
INonwBargaining I 91549 92,549
TOTAL HUMAN RESOURCES 92,549 92549
Non -Bargaining 197382 197382
TOTAL ECONOMIC DEVELOPMENT 197382 197382
33
34
35
36
37
38
39
40
Non -Bargaining 569330 569,961 59S,977 26,016 4.56%
Sergeants 710,570 710*570 730,114 19,544 235%
Bargaining - Unit 1 3,069,128 3,074,903 3,167,877 91974 3.02%
Bargaining - Unit 2 (Non -Dispatch) 206316 210,004 220,048 10,044 418%
TOTAL POLICE 4,555344 4,565,438 4,7149016 148578 125%
41
42
43
44
45
46
47
48
Non -Bargaining 94469 94,748 97353 205 2.75%
Bargaining - Unit 2 (Non -Records) 1,236304 1,246,289 1278,047 31,758 2.55%
TOTAL POLICE DISPATCH 1330,773 1,341,037 1,375,400 34363 2.56%
49
50
51
52
53
A B C
D
E F G H I
54
55
Non -Bargaining 270,035 270P336 277,684 7348 172%
TOTAL PUBLIC WORKS - ADMINISTRATION 270,035 270336 277,684 7348 2.72%
56
57
58
59
60
Non -Bargaining 326,199 326.058 335,026 8,968 2.75%
Bargaining - IUOE 150 9SBP710 955232 968,877 13,645 1.43%
TOTAL PUBLIC WORKS - STREETS 1284,909 1281290 1301903 22,613 1.76%
61
62
63
64
65
Non -Bargaining 386,949 1 395,548 349,915 (45,633)-11.54%
Bargaining - IUOE 150 333,826 341701 343,670 19969 0.58%
TOTAL PARKS AND RECREATION 720977S 737,249 691585 (41664) -5.92%
66
67
68
69
70
71
72
Non -Bargaining 70,602 1 101,785 104,061 2,276 2.24%
TOTAL COMMUNITY DEVELOPMENT 70,602 101,785 1049061 2276 2.24%
73
74
75
Non -Bargaining 391,493 388PS72 399*259 10,687 235%
Bargaining - IUOE 150 1,261,035 1,178,192 1,225,793 47,601 444%
TOTAL WATER, SEWER, UTILITY FUNDS 1,652,528 1566,764 1,625,052 58288 3472%
76
77
78
79
80
81
Non -Bargaining 130,768 1 131,531 1 135,148 1617 2150/c
TOTAL INFORMATION TECHNOLOGY 130,768 131,531 135,148 1617 235%
82
61
Fiscal Year 2 018/2 019
Annual Budget
Administration
General Administration - Overview
The General Administration Budget contains personnel
and operational functions related to the provision of
general administrative services and, in FY18/19, includes
capital projects expenditures from the General Fund
Balance as directed by City Council. New in FY18/19, due
to operational/department restructuring, economic
development and human resources functions have been
formed under separate departmental budgets (Economic
Development and Human Resources) and, as such, all related expenditures are now found within
these. Next, municipal center building and grounds maintenance activities are now included under
the Department of Community Development. Finally, capital projects to be funded through the
General Fund Balance will be accounted for in this fund for FY18/19. Due to all of these changes, the
General Administration budget is substantially increased from previous years. While personnel costs
are reduced $409,032 from the transfer of personnel to other departments, "Other" costs related to
Public Improvements have increased the budget by $1,406,500.
The Office of the City Administrator, which includes the positions of City Administrator and Deputy
City Clerk/Executive Assistant, is responsible for providing management services, budgeting,
legislative support, and communications to elected officials, staff, and the public in carrying out the
policy and direction as set by the City Council. The City Administrator is also responsible for the
direction of Information Technology services.
s$3
General Administration - Organizational Chart
General Administration - FY17/18 Accomplishments
• Coordinated transition of newly elected Mayor and one Alderman.
• Worked with Mayor to develop posting on Facebook weekly municipal eBlasts in order to
inform public of important municipal activities.
• Introduced Nixle as new communication tool for Administration and Public Works
information. The Police Department has used Nixle for some time.
• Developed 5-year Capital Improvement Program (CIP).
• Presented a balanced FY17/18 Budget for City Council consideration.
• Engaged Sterling Codifiers to undertake "codification" of the McHenry Municipal Code.
• Continued maintenance of the municipal website through GovOffice to provide information
to our residents, invite visitors and businesses to our community, offer transparency in
government, and provide increased opportunities for interaction such as bill payment, FOIA
submittal, permit application, etc. Specifically, and new "Transparency Portal" was created
to make it easier for residents to access important municipal information.
• Continued upgrade of City Council audio/visual capabilities of City Council Chambers through
the installation of monitors to project Council Agendas and presentations during meetings
for the viewing of the public in attendance.
• Collated and developed information for three (3) City Newsletters (2 print, 1 online).
65
General Administration - FY18/19 Goals & Objectives
• Support new Executive Assistant/Deputy City Clerk in understanding the various roles and
stakeholders of the municipality.
• With the Mayor and Director of Community Development, analyze the potential for physical
restructuring of departments to move Department of Community Development to first floor
of Municipal Center.
• Continue and finalize the review, updating and codification of the McHenry Municipal Code.
• Enhance use of Nixle for public communication.
• Coordinate and develop the FY19/20 - FY23/2 5-Year Capital Improvement Program.
• Develop an operationally balanced FY19/20 Budget for consideration by the City Council
ensuring that the City maintains, per policy, a 120 day operational reserve and that funding
over this amount are assigned and committed to capital improvement and capital equipment
projects. Budget should meet or exceed the guidelines established for Distinguished Budget
designation by the Government Officers Finance Association.
• Continue engagement with the Illinois Municipal League and other stakeholders to monitor
legislation at the State level that may impact municipal funding.
• Engage in discussions with other McHenry taxing bodies regarding the extension of the
Downtown Tax Increment Finance District. With consensus, begin the process for this
extension to take place.
• Continue to provide leadership and oversight to all departments to provide the highest
quality of services in the most cost and time efficient manner to customers.
General Administration - FY16119 Performance Measures
Item
Goal
Description
Proposed
Develop an updated CIP
Was the CIP updated and
Capital Improvement
and transmit to City
transmitted to the City
January 2019
Program (CIP)
Council in January.
Council in January and
February 2019
approved in February?
Develop and present a
Was a balanced operating
Annual Budget
balanced operating budget
budget presented for City
April 2019
for City Council
Council's consideration.
consideration.AML
GFOA Distinguished
Prepare an annual budget
Did the City's budget for
Budget Award
that achieves national
the prior year receive the
Yes
Presentation
recognition via the GFOA's
GFOA's Distinguished
Award Program.
Budget Award?
Respond to a resident
/o o of time that General
Resident
complaint or inquiry
Administration staff
o
100/o
Complaints/Inquiries
within one working day
responds within one day.
from receipt.
City Council committee
and regular meeting
% of time City Council
City Council Committee
agenda packets will be
Committee and Regular
and Regular Meeting
distributed no later than
Meeting Agenda packets
o
100 /o
Agenda Packets
the end of business
completed on time.
Wednesday prior to
scheduled meetings.
To analyze potential of
Move Community
To move Department of
physically moving
Identify if physically and
Development to 151 Floor
Community Development
Department of Community
operationally possible and, if
of Municipal Center
to 1st Floor of Municipal
Development to 1sFloor
so, to develop plan for move.
Center
to increase efficiency and
customer service.
67
General Administration - Expenditure Summ
Total Expenditures
FY14/15 Actual - FY18/19 Proposed
$2,500,000 213331449
$2,000,000
$1,5001000 02,493 Y410 42 24 478 214
$1,000,000
$500,000
FY14/15 FY15/16 FY16/17Actual FY17/18
Actual Actual FY17/18 FY18/19
Budget Estimated
Proposed
FY18/19 Proposed Expenditures by Type
Personnel
$408,072
18%
Contractual
$355,050
15%
Other
$1,4981877 ` / Supplies
64% $71,450
3%
.S
' AI 1 P I i Q I 1
Salaries/Bpfi.*s- a ,�
4010 Salaries
_4050 Overtime
4110 Salaries -Seasonal
4220 Board and Commission Expense
4310 Health Insurance
4320 Dental Insurance
4330 Life Insurance
4340 Vision Insurance
4410 FICA Medicare
4420 IMRF Retirement
4510_ Uniform Allowance
TOTAL SALARIES/BENEFITS
�tractual Services
5110 Contractual
5230 :Corporate Legal Fees All Departn
5310 Postage and Meter
5320 `Telephone
5330 Printing and Publishing
5370_ 'Repair and Maintenance
5410 Dues
5420 Travel Expense
5430 Training
5450 ':Publications
5510 ;Utilities
TOTAL CONTRACTUAL SERVICES
555,589 ' 549,815 I 566,451 583,956 I 574 835 ''; 273,606 (310,350)-53.15%
1,713 2,3901
2,783 1,000 1,851 1,000 0.00%
1,433 0.00%
61010 61903 7,164 8,500 7,200 16,000 7,500 88.24%
91,068 92,091 96,560 101,000 82,677 59,856 (41,144)-40.74%
31887 3,479 3,445 - 3,631 2,952 3,333 (298) 421%
395 396 427 332 423 214 (118)-35.54%
221 254 227 212 206 109 (103) 48.58%
39,137 38,621 39,765 43,266 39,895 19,178 (24)088)-55.67%
72,854 72,081 73,684 74,75711 71,723 34,326 (40)431)-54.08%
450 450 0.00%
770,874 766,030 791,939 817,104 781,762 408,072 (409)032)-50.06%
695 200,142 125,068 157,210 132,968 101, I, 98,300 (58)910)-37.47%
242,468 298,466 296,980 250,000 261,948 225,000 (25,000) 40.00%
919 4,959 952 1,000 815 1,000 - 0.00%
81267 9,082 16,709 20,000 13,970 (20)000) 100.00%
21889 21407 3,275 2,500 8,979 2,500 0100%
51363 165 180 750 - 750 - 0.00%
17,280 20,684 18,227 20,000 26,061 20,000 - 0.00%
3,486 5,197 41432 4,000 4,496 4,000 0.00%
41244 3,074 8,455 51900 731 - 21000 (3)900)-66.10%
382 207I781 500 485 500 0.00%
9,735 11269 11045 11000 614 1,000 0.00%
396,728 545,652 476,104 462,860 4511067 355,050 (107)810)-23.29%
Materials and Supplies
Office Supplies
Gasoline and Oil
Small Equipment
TOTAL SUPPLIES
A
B
S
P
P
P
27,532 _ 741559 55,531 61,450 79,929 69,700
688) 21303 500 11500 41512 17500
458 -
160 103 250 250
27,462 76,862 56,134 63,200 84,441 71,450
dministrative Expense
71964
2,303
13,800 11,79
12,153
uildings
-
15,986
-
66,2i:
treets
12,712
ublic Improvements
urchase of Services - Risk Management
_
52,732�
4813C
-
71,607
48,302
urchase of Services - Information Tech
27,858
29,867
33,263
34.614
34.61
V
� TOTAL OTHER
107,429 44,882 114,134
0
13,800
8
-
345,000
11061,500
2
48,302
a
zn ?7K
96,716 160,944 1,498,877
8,250
8,250
345,000
1,061,500
(4,339)
1,402,161
13.43 %
0.00%
0.00%
0.00%
13.05%
0.00%
0.00%
0.00%
0.00%
0.00%
-12.54%
1449.77%
r1
Elected Officials - Overview
The Elected Officials Budget contains personnel
and operational functions related to the elected
positions of the municipality. These include the
Office of the Mayor, the seven (7) Aldermen, and
the City Clerk. The primary functions of these
elected positions are described below.
The Office of the Mayor provides leadership,
initiative, and direction necessary to provide quality services to the citizens of McHenry. The Mayor
interacts continuously with the appointed City Administrator in ensuring that the established
policies and ordinances of the municipality, as set by the City Council, are carried out by the various
departments, divisions and employees of the city.
The City Council, comprised of seven (7) Aldermen representing geographically defined wards and
elected to staggered four (4) year terms, is the legislative body for the City of McHenry. The authority
of the City Council is expressed during regularly scheduled City Council Meetings (1st and 3rd Mondays
of the each month) through the adoption of policies, resolutions, ordinances and other related actions
as deemed appropriate to promote and protect the high level of service quality and financial stability
of the City.
The City Clerk, elected every four (4) years, has the responsibility for taking minutes for all regular
City Council meetings, Council Committee meetings, Committee of the whole meetings, and Planning
and Zoning Board meetings. The City Clerk is also responsible for records management of the
municipality. The City Clerk is assisted in these efforts by a designated Deputy City Clerk who is also
a full-time employee of the city.
72
Elected Officials - Expenditure Summary
Total Expenditures
FY14/15 Actual - FY18/19 Proposed
$180, 000
$161,420
$160,000 $144,818
$140, 000
$120,000 ----
$100,000 $94,493_
—
$99,380 $100,986 $100,179
----� --- _
$80,000 — ----
$60,000 - - ----- - - -----
$40,000 --
$20,000.� ---
FY14/15 FY15/16 FY16/17 FY17/18 FY17/18 FY18/19
Actual Actual Actual Budget Estimated Proposed
FY18/19 Proposed Expenditures by Type
$25,806
$16,150
■ Personnel
■ Contractual
o Supplies
■ Other
73
Elected Officials - Fund Summary (Fund 100, Department 02
4010
'Salaries
4210
Salaries - Elected Officials
4310
Health Insurance
4320
Dental Insurance
4330
Life Insurance
4340
Vision Insurance
4410 FICA Medicare
4420 IMRF Retirement
TOTAL SALARIES/BENEFITS
5310 Postage and Meter
5320 Telephone
5330 Printing and Publishing
5410 Dues
5420 Travel Expense
5430 Training
5450 Publications
TOTAL CONTRACTUAL SERVICES
6210 Office Supplies
6910 Employee Recognition
TOTAL SUPPLIES
6940 '..Administrative Expense
9922 ' Purchase of Services -Information Tech
TOTAL OTHER
36,032 41,587 - 0.00%
40,615 481134 531000 53,900 52,758 53,900 0.00%
8)259 3 8,276 0.00%
396j_ 388 - 0.00%
- 40 11 40 - 3 �- 0.00%
67 64 0.00%
- - - -
5,762 1 61983 3,804 4,123
- 4,050 4,123 0.00%
-- -
4,767 4,851 0.00%
95,938 110,323 56,807 58,023 561808 58,023 0.00%
3,329
3ICi1;
7,628
2,285
325
7,205
2,855
6,300 !,
8,605
6,300
928
11234
1,000
1,576
4, M6
10,064
61500
948
6,500
1,358
1,390
11100
660
-- -
11100
259
206
250
250
24
520
1,500
11500
426
500
500
14,919 14,
148 407 200 I _ 464 200
30
178 407 200 464 200
18,953]_ 1%872 20,461 19,300 ! 19,119 19,300
14,830 16,412 5,843 6,313 6,313 61506
33,783 36,284 26,304 25,613 25,432 25,806
406 16,269 17,150 11,789 16,150
(1,000) 400.00%
0.00%
0.00%
0.00%
0.00%
0.00%
(1,000) -5.83%
0.00%
0.00%
193 3.06%
193 0.75%
Fiscal Year 2018/2019
Annual Budget
Community
75
Community Development - Overview
The Department of Community Development is
responsible for promoting the health, welfare, safety
and quality of life to McHenry citizens, property owners,
visitors and commercial interests. These services are
provided by an experienced and professional staff that
consists of a Plan Reviewer, Commercial Building
Superintendent, Residential Building Superintendent,
Plumbing Inspector, and a Code Enforcement Officer.
The administrative staff within the department includes
an Administrative Assistant and Office Assistant.
City of McHenry
Community and
Economic Development
The Department relies on a partnership with local and
regional government and public agencies, community
based organizations and the business community to succeed in its mission. The Department of
Community Development strives to achieve the highest level of customer service and professionalism
in helping the community thrive.
Additionally, the Department of Community Development coordinates closely with the Director of
Economic Development to ensure that business expansion, relocation and development projects
remain top priorities for review and that processes are streamlined to the extent possible while
maintaining the appropriate attention to detail in regards to applicable codes and other guidelines.
76
Community Development - Organizational Chart
Community Development - FY17/18 Accomplishments
• Completed the review and implementation of a new teardown ordinance.
• Reviewed fee structure for all permits.
• Continued efforts to digitize historical building documents.
• Identified areas within the Municipal Code that are in need of updating. This included
garbage receptacle ordinance and burning regulations.
• Increased efforts with Economic Development Director to retain and attract new business to
McHenry.
• Coordinated Business Site Visits, particularly new businesses, and enhance relationships
with all businesses.
• Continued efforts to maximize the use of the BSA software and explored the cost of the citizen
portal that allows citizens and contractors to submit electronically.
• Worked with the Illinois Department of Health on establishing guidelines for new water
service and fire service installations.
• Continued a focus on customer service enhancements.
• Continued to coordinate with Administration to cross -train point of service employees with
a goal of establishing a seamless, single point of customer contact.
• Major building permits finalized included White Oaks Memory Care, Dunkin Donuts,
McHenry Downtown Theater and D.C. Cobbs.
Community Development - FY16/19 Goals & Objectives
• Continue to review and update outdated ordinances.
• Concentrate on updating the current website with more customer service -oriented material.
• Create and implement a social media program to help get information to the citizens as it
relates to Community Development.
• Finalize and implement a communitywide Code Enforcement Strategy.
• Continue to provide a high level of customer service to residents and businesses.
• Continue to supply exemplary building inspection services on all projects including the Ricky
Rockets Development and the Pearl Street Commons.
• Focus on continuing education of employees within the department to ensure that we
provide the highest level of service possible.
Community Development - FY18/19 Performance Measures
FIT •
Item
Goal
Description
Proposed Outcome(s)
Was the program
Create a Social Media
implemented to include
program to allow
weekly social media posts
Implementation of social
Social Media Program
information to be relayed
relaying Community
media program
to the public
Development
Information?
To review, update and
Was the Community
Addition or expansion of
Community Development
expand Community
Development website
useful Community
Website
Development information
ed.
Development on the website
on websitemprov
To finalize the Code
Code Enforcement
Enforcement Strategy and
Was the strategy
Use the strategy to guide code
Strategy
use it to help stay
completed and
enforcement procedures
consistent with
implemented?
enforcements
Identify, review and
Did the review of the
ordinances take place and
To continually update
Update Municipal Code
update Municipal Code
Were they updated were
ordinances
Ordinances
needed?
: 1'
Community Development - Fund Summary (Fund 100, Department 03)
4010 Salaries
4030 Salaries - Part Time
4050
4310
4320
L 4330
4340
4410
I4420
4510
Overtime
Health Insurance
DentalInsurance
Life Insurance
Vision Insurance
1,099
89,457
31779
--_218-
112
FICA Medicare 24,450
IMRF Retirement 45,247
Uniform Allowance _
TOTAL SALARIE S/BEN E F1TS 505,175
3571769 - 473,614 - 502,901 504,460 1 472 503
2,688 13,612 - li 15,749
96,380
105,650
106,035
96,024
4,030
4,309
4,379
4,134
218
292-
316 �.
_ 276
155
313
358 !
345
25,840
35,695-
38,472
39,448
47,257
63,445
64271
67,010
-
200
750
225
534,337 697,130 717,482 727,671
N
5110 Contractual 31404 41549 21709
5310
5320
5330
5370
Postage and Meter.. 1,376 1,349 1192
Telephone 21400 2,261 21985
100,941
4,062
308
293
36,146
59,063
750
674,066
1,000
Printing and Publishing_.___ 672 210 104 500 105 500
Repair and Maintenance 11373 1,841 879 2,000 j 4,835 2,000
5410 Dues
5420
5430
5450
i 6110
6250
6270
Travel
Expense
Training
Publications
TOTAL CONTRACTUAL SERVICES
830 604
429
1,000
345
11000
Materials and Supplies � 6 573 65 6,262 2 250 I,___1_740 2,000
2 296 1973 -_- 2,338_ 2,500
Office Supplies - - 2,669 2,500
Gasoline and Oil
3,285 3,953 21644 3,0001 2,636 3,000
SmallEquipment 130 101 934 500 60 1,000
TOTALSUPPLIES 12,284 6,092 12,178 81250 71105 81500
(30,398)
(5,094)
(317)
(8)
(65)
(2,326)
(5,208)
(43,416)
(7,300)
(2,500)
(1,000)
(10,800)
(250)
500
250
0.00%
-18.25%
0.00%
-100.00%
0.00%
0.00%
0.00%
0.00%
-25.00%
0.00%
-20.87%
0.00%
0.00%
100.00 0
3.03 0
Capital Lease Principal Payments I1,474 1,547 667 1,550 - -
- - -
Purchase of Services - Risk Management 25,295 _ 25,295 25,11623,540 23,_540 23,540
Purchase of Services - Information Tech 37,117 3%SS4 45,744 48,966 4%966 40,319
TOTAL OTHER 63,886 65,396 71,527 74,056 72,506 63,859
0400%
(8,647)-17.66%
(10,197) -1177%
G x '
TomMI
AMP MPI
' �
Finance - Overview
Mission Statement
It is the mission of the Finance Department to account for all
municipal resources and to apply such resources in a manner that is
most beneficial to the citizens of McHenry. The primary operating
functions of the Finance Department are as follows:
Administration
affairs of the
planning, and
department.
Responsible for management of financial
city, including budgeting and financial
supervision of operations within the
• Accounting: Provides the City's financial reporting, payroll processing, accounts payable and
receivable, purchasing, fixed asset reporting, special tax collections, billing, and auditing
functions.
• Revenue: Collects various revenues, manages the Police Pension fund, ensures payments to
retirees are processed, and invests idle City funds.
Note that the Finance Department expenditures include, under "Other", transfers to other funds.
E:�7
Finance - Organizational Chart
Finance - FY17/18 Accomplishments
• Worked with the new time entry software to setup all employees to begin to eliminate paper
time sheets for all full time employees. Also, began training on how to use the software for
scheduling.
• Completed analysis on water/sewer usage and capital rates in order to ensure operating and
capital expenses are covered.
• Updated the IEPA loan debt service fee and analyzed number of users to ensure annual debt
service expenses will be covered with the debt service fee revenue.
• Continued to work to find alternative methods for residents to pay bills electronically as well
as have the ability to look up their bill electronically.
• Recognized by the Government Finance Officers Association (GFOA) with the Distinguished
Budget Award for the FY17/18 Budget document. This is the third year in a row that the City
has received this award.
Finance - FY18/19 Goals & Objectives
• Improve management of the City's investment portfolio, including implementing cash flow
modeling and investment strategies.
• Create a procedure manual for all duties wn the finance department including screenshots
of the Tyler software to help with cross training.
• Begin cross training within the finance department to ensure vacancies can be covered.
• Improve communication of information to new residents.
• Implement a new electronic payment method for all bills, which will create efficiencies
because payments will no longer have to be manually posted.
• Implement the new time entry software and work to integrate the software with the Tyler
Financial Software.
• Submit FY18/19 Budget to the GFOA for consideration for the Distinguished Budget Award.
Finance - FY18/19 Performance Measures
Performance
Performance
P-
•
Item
Goal
Measure
Proposed
Develop an update
Was the quarterly report
Quarterly Reports
quarterly reports and
updated and transmitted
September 2018, December 2018,
transmit to the
to the board quarterly?
March 2019, and June 2019
appropriate board.
Develop and present a
Was a balanced operating
'
Annual Budget
balanced operating budget
budget presented for City
April 2019
for City Council
Council's consideration?
_
consideration.
Continually have an
Whether or not an
An unqualified opinion issued on the
Annual Audit
unqualified opinion has
18/19 audit presented to council in
unqualified audit opinion
been issued
September or October of 2019
% of Time that Finance
Customer and Vendor
Return all calls within one
Department Responds to
100% of the time respond to calls
Concerns/Complaints
business day
Calls within one business
within one business day.
day
Annually apply for the
Illinois Government
Annual application of
Apply once budget has been approved
Annual Budget Award
Finance Officers
budget award submitted
by the City Council
Association (IGFOA)
to the IGFOA
budget award
Finance - Fund
04
4010 Salaries
4030 'Salaries- Part Time
4050 Overtime
4310 Health Insurance
4320 Dental Insurance
4330 Life Insurance
4340 Vision Insurance
4410 FICA Medicare
4420 IMRF Retirement
4510 Uniform Allowance
TOTAL SALARIES/BENEFITS
5110 I Contractual
5310 Postage and Meter
5320 Telephone
5330 Printing and Publishing
5410 Dues
5420 Travel Expense
5430 (,Training
5450 Publications
TOTAL CONTRACTUAL SERVICES
6110
6210 .Office Supplies
6250 Gasoline and Oil
6270 Small Equipment
TOTAL SUPPLIES
45,489 i 234,712 � 229,686
i
24, 374 j 23,358 40,804
56,282 69,284 62,779
2,436 21859 21375
172 182 184
181 132 157
19,473 18,302 19,315
35,410 33,821 j 35,237
384,317
43,990
382,650 390,537
58,647
82
8,387
8,688 6,056
241,285 237,1241 347,751
411926 38,287 j
631239 58,555 821715
2)337 21229 21963
200 191 246
251 217 325
21,666 19,733 26,603
36,194 34,537 43,469
407,098 390,873
28,341
1,837
13,869
338
57,548
504,072
9,500
30,200
19,
535
525
500
60,260
387 -
7,000 776 7,000
7,000 1,163 71000
106,466 44A2%
(41,926)-100,00%
0.00%
19,476 30.80%
626 26.79%
46 23.00%
74 29.48%
4,937 22.79%
7,275 20.10%
0.00%
96,974 23.82%
0.00%
(600)-100600%
(1,700) -8.01%
0.00%
0.00%
0.00%
0.00%
(2,300) -3.68%
0.00%
0.00%
0.00%
0.00%
6940
Administrative Expense
_ 6945
Development Expense _
387,105
437,871
546,524
650,000
650,000
650,000
6961
Miscellaneous Expense
9904
ITransfertoDebtService
692,826
729,960
726,318
735,361
735,361
739,993
j 9907
Transfer to SSA
9909
Transfer to MFT
j 9942
Transfer to Capital Improvement Fund
559,423
1,2541822
41795,570
11191,209
-
-
9944
Transfer to Band Fund
15,000
15,000
15,000
! 12,000
12,000
12,000
9945
Transfer to Civil Defense Fund
50000
51000
8,000
8,000
8,000
81000
9946
Transfer to Capital Equipment Fund
277,825
243,225
-
238,370
_
9920
I Purchase of Service - Risk_ Management
19)730
19,730
17,178
16,226
16,226
16,226
9922
Purchase of Service - IT
49,073
53,960
63,655
64,763
64,763
66,889
TOTAL OTHER
2,0051982
2,75%568
6,172,245
2,9151929
11486,350
1,4931108
TOTAL FINANCE
it
19
..
•
1. „1
N
0.00%
0.00%
4,632
0.63%
0.00%
0.00%
(1,191,209)
-100,00%
0.00%
-
0.00%
(238,370)
-100,00%
0.00%
21126
3.28%
(1,422,821)
-48.79%
I
Fiscal Year 2018/2019
Annual Budget
Human Resources - Overview
The Department of Human Resources and Director of Human
Resources coordinates the employee and risk related functions of the
City. This includes compensation, benefits, wellness, staffing,
recruitment & selection, internal policies, workers compensation and
safety, performance management, labor relations, and employee
relations, training, and process improvement.
Human
Resa� �rrP�
Through the establishment of the McHenry Recreation Center, the
staffing size of The City has grown to have an average of 275 full and
permanent part time employees. During the summer season this
increases to around 330 employees. Prior to FY18/19, human
resources functions and related expenditures were found within the General Administration Budget.
Given the growing specialization of human resources issues, these have now been separated in to this
separate budget fund. This is the reason that no individualized budget information is available prior
to FY18/19.
In addition to human resources functions, the Director of Human Resources is also responsible for
the point -of -service administrative personnel that staff the front counter of the Municipal Center.
92
Human Resources - Organizational Chart
�x�
Human Resources - FY17/18 Accomplishments
• In Time: Scheduling & Attendance system. HR & payroll spent much of 2017 integrating the
City's attendance, scheduling and payroll systems with In Time. This system will eliminate the
paper time sheets that currently take three days and multiple people to verify and process.
Roll out is expected I the 1st quarter of 2018.
• IPBC Intergovernmental Public Benefit Cooperative. Reduces and balances rising health
insurance costs. Implemented IPBC during 3rd and 4th quarters of 2017.
• BenefitSolver. This online open enrollment system allowed for a more efficient open
enrollment and replaced all paper versions previously used by the City. This is paid through
IPBC, so no additional cost to the City.
• Classification &Compensation Study - While a consultant was hired to conduct the internal
and external surveys, much work on job descriptions and internal equity was and continues
to be done by Human Resources. This will ensure our compensation plan is equitable to other
similar municipalities and ensure that our positions are classified appropriately under the Fair
Labor Standards Act.
• Family &Medical Leave -This remains on the list due to the volume of City employees on
FMLA during this year.
• Five Year Staffing Plan- This project has been started and could be complete by the end of
Me fiscal year. Analyze the current staffing situation, gain feedback from directors on
forecasted staffing needs and create a five year plan.
• Employee Relations - A significant amount of time is being spent on employee
relations/employee conflict issues and performance related issues. Those that need it are
receiving the coaching and guidance needed to resolve and improve issues at the employee
level. Some larger issues have been referred to employee assistance program (EAP) for a
higher level of intervention.
• Recruiting & Onboarding -While this is a core component of human resources, this
department has recruited a high number of new employees leading to a significant increase in
the time spent on pre -employment and employment activities.
G'I!
Human Resources - FY18/19 Goals & Objectives
• Complete implementation of In Time Scheduling &Attendance software
• Implement FLMA software to ensure compliance and track FLMA
• PowerDMS. This is a holdover from the previous year. This software will manage documents
and the distribution of documents such as the employee handbook and policies.
• Continue to update Employee Handbook and use PowerDMS for distribution to employees
and compliance.
• Create Performance Management system including evaluation tool.
• Analyze volume of work at front counter and adjust staffing after possible retirement of
existing staff.
95
Human Resources - FYId/ IV Performance Measures
FY18/19
Item
Goal
Description
• -
Increase efficiency in
Convert the old paper
Use the full capabilities of
Scheduling & Attendance
system into an electronic
processing time cards and
InTime (once aligned with
Implementation
,stem that integrates
scheduling employees
Tyler)
with payroll software
More effective tracking and
FMLA Software
Compliance with FMLA
Track & Maintain FMLA
communication of FMLA
it
Software that tracks
Use to revise Employee
changes, stores and
Manage large documents and
Power DMS
Handbook and distribute
distributes utilizing
policies.
employee signatures for
increase communication.
compliance
Identify additional
Upon retirement of
Possible reduction of .5 FTE
Front Counter Staffing
incumbent, reduce staffing
efficiencies
or increase job duties.
or increase job duties.
Implement efficient &
Revise Performance Mgmt
Performance Management
Present detailed plan
meaningful performance
System
mgmt..
Human Resources - Fund
41 010 (Salaries
4310 Health Insurance
_ 4320 Dental Insurance
4330 Life Insurance
4340 Vision Insurance
4410 FICA Medicare
4420 IMRF Retirement
TOTAL SALARIES/BENEFITS
5410 Dues
5420 Travel Expense
5430 Training
5450 Publications
TOTAL CONTRACTUAL SERVICES
6110 Materials and Supplies
6210 Office Supplies
TOTAL SUPPLIES
6940 Administrative Expense
9922 Purchase of Services Information Tech
TnTAT- nTT4PP
_ I 93 083 93,083
9195 9,195
417 417
41 41
70 - 70
71121 71121
11,635 11,635
121IS62 121,562
29,944
4,000
33,944 33,944
8,237
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%
0.00%
0.00%
0.00%
n nnni
IF 711
am
ia
Imo. _ I •� +owl
IcyMA Im ME I di
?Vel(]
Economic Development - Overview
The Department of Economic Development Budget
contains personnel and operational functions related to
the provision of economic development services in the
City. Prior to FY18/19, costs related to economic
development activities and personnel were accounted for
in the General Administration and Community
Development Budgets. With a growing emphasis on
economic development activities, a separate budget fund
has not been established to account for expenditures.
The Department of Economic Development includes the positions of Director of Economic
Development, Economic Development Coordinator and Assistant of Economic Development.
The Department is responsible for providing economic development -related -services,
support, and communications to elected officials, staff, and the general public in carrying out
the policy and direction as set by the City Council.
The Director of Economic Development is responsible for overseeing the day-to-day
operations of the Department of Economic Development and plays a key role in carrying out
the business retention, expansion and attraction activities of the city. This position also
serves as the primary point of contact for all economic development -related business
activities of the municipality, is the liaison to the city's Economic Development Commission
(formed in 2017), and coordinates closely with the Director of Community Development in
assisting with planning and zoning activities.
Economic Development - Organizational Chart
Economic Development - FY17/18 Accomplishments
• Maintained active blog, McHenry Market Pulse, to engage community and provide
consistent and accurate information as it relates to economic development and
confirm/dispel rumors; began YouTube Channel and Instagram;
• Attended at the 2017 International Council of Shopping Centers Convention in Las
Vegas;
• Attended meetings with District 156 on INCubatoredu;
• Assisted in holding 2nd annual Manufacturing, Trades, and Industry Expo;
• Assisted in establishing Department of Economic Development;
• Created a New Business Packet;
• Created a Business Recognition Program;
• Assisted in creation of new Revolving Loan Fund Program;
• Assisted in establishing Economic Development Commission;
• Assisted with opening Downtown Indoor Theater;
• Assisted with National Apprenticeship Week (banners) and participated on National
Apprenticeship week Committee;
• Assisted with creating Safety Town and recognizing businesses who participated;
• Worked with Public Works Director in obtaining right-of-way from property owner
for Lincoln Road Project;
• Sent letters to all new businesses thanking them for locating in the City; expanding,
etc;
• Attended McHenry Area Chamber of Commerce Business Scrambles;
• Worked with McHenry County Highway Division and the Cities of Woodstock and
Crystal Lake on promoting Pace Paratransit Program and assessing future
agreements with regards to the same;
101
® Nominated manufacturers for McHenry County Economic Development Business
Champion Awards (2017- two winners: Miller Formless and Brake Parts);
® Wrote incentive and annexation agreements and ordinances to facilitate and promote
business attraction, retention and/or expansion;
® Worked with McHenry County College/Small Business Development Center
(business attraction and retention -MCC Manufacturing Breakfast);
® Represented City in attending McHenry Area Chamber Mixers, Multi -Chamber
Mixers; Ribbon Cuttings and Grand Openings for New Businesses;
® Assisted Community Development, writing amendments to the zoning ordinance,
subdivision control and development ordinance and municipal code to assist
businesses;
® Continued to serve as member of McHenry County Public Transit Access Committee
and McRide Subcommittee;
® Attended McHenry County Workforce Network Meetings (serve as proxy for City
Administrator);
® Coordinated Business Site visits;
Continued to work with Downtown Businesses and Community Organizations (City,
Chamber, Downtown Business Association and Businesses); Coordinate 2017 events
across all organizations and joint marketing effort (Downtown Supergroup);
® Worked cooperatively with key property owners and McHenry Area Chamber of
Commerce, downtown business owners and other relevant organizations and parties
in seeking additional ways to revitalize downtown, working more closely with
businesses with the goal being to attract additional investment in the downtown area,
retain existing businesses, promote investment in older properties and assist smaller
businesses struggling to keep doors open;
Worked on securing agreement with McHenry Township to continue providing free
paratransit rides.
102
Economic Development - Performance Measures
FY •
Item
Goal
Description
Proposed
Develop and present a
Was a realistic and effective
realistic and effective
Annual Budget
economic development
economic development
April 3, 2018
budget presented for City
annual working budget for
Council's consideration?
City Council consideration.
Was the Zagster Bike
Zagster Bike Sharing
Prepare a Zagster Bike
Sharing Program practical
yes
Program
Sharing Program.
and successful? Was it
funded and implemented?
Develop various avenues of
marketing the City to
What forms of marketing
Video and other media and how
Marketing of City
effectuate business
were utilized?
were they measured.
attraction, expansion and
retention.
City Council committee and
regular meeting agenda
% of time City Council
City Council Committee and
packets will be thorough
Committee and Regular
Regular Meeting Agenda
and include necessary
Meeting Agenda packets
100%
Packets
information for City Council
were considered thorough
to make appropriate
and completed.
decisions.
Continue cross -training
Time efficiency can be
Administrative Staff to
Cross -training of
expand the ability to
increased through cross -
Cross -trained Administrative
training Administrative Staff
Administrative Staff
provide the most
Staff
and work towards a single
information to a caller or
Point of customer contact
resident when they stop by
Work with police and other
Provide Power Point, videos
People in City and outside of
Educate residents about
departments to hold off -site
and hold talks on various
City become more informed and
economic development
educational sessions at
economic development
engaged about economic
library, etc. on different
topics
development
topics.
Attend community events,
Attend a minimum of 5-7
Attendance at 5-7
Promotion of City, City
programs to promote City,
community events/business
events/site visits
businesses, City events or
business, etc.
site visits
events within City
103
Economic Development - Fund
4010
Salaries
4310
Health Insurance
4320
Dental Insurance
4330
Life Insurance
4340
Vision Insurance
4410
FICAMedicare
4420
IMRF Retirement
TOTAL SALARIES/BENEFITS
5110 Contractual
5310 (Postage & Meter
o
.P 5330 1 Printing and Publishing_
5410 Dues
5420 LTravel Expense
5430 Training
5450 _ _ Publications
TOTAL CONTRACTUAL SERVICES
6110 'I Materials and SuI
6210 Office Supplies
TOTAL SUPPLIES
9920 '.Purchase ofServices - RiskManagement
9922 Purchase ofServices -Information Tech
TOTAL OTHER
198,882
1987882
0.00%
47,535
47,535
0.00%
1,839_
1,839
0.00%
123
123
0.00%
153
153
0.00%
_
15,215
15,215
0.00%
24,860
24,860
0.00%
288,607
288,607
0.00%
16,000
0.00%
16,0001
700
700
0.00%
2,000
21000
0.00%
2,500
21500
0.00%
21500
2,500
0.00%
31500
3,500
0.00%
i
0.00%
27,200
i
27,200
0.00%
300
300
0.00%
700
700
0.00%
1,000
11000
0.00%
13,482 13,482 0.00%
13,482 13,482 0.00%
Fiscal Year 2018/2019
Annual Budget
Commission
105
Police Commission - Overview
The purpose of the Police Commission is to select sworn personnel in accordance
with the employment policies of the City of McHenry, as well as investigate
conduct hearings regarding any sworn member of the McHenry Police
Department.
Expenditures
FY14/15 Actual - FY18/19 Proposed
$S,000
$7,382
�FZSZ. $6,953 _ $6,953
$6,453
$6,053
$6,000 --
$5,000 _-..._ _ _._
$4,000 ——._......_ all
$3,000 _.... —.. ___
$2,000
all—
$1,000 �._aa._,
$— ---
FY14/15 FY15/16 FY16/17 FY17/18 FY17/18 FY18/19
Actual Actual Actual Budget Estimated Proposed
106
N
0
V
Police Commission - Fund Summary (Fund 100, Department 21)
4220 Salaries
4410 Social Security - Medicare
TOTAL SALARIES/BENEFITS
11350 11350 11350 1,350
103 103 103 103
5110 Contractual S,179�_
_5330 Printing and Publishing
5410 Dues - 375
L5420 Travel Expense
5430 Training 375
_5450 Publications
TOTAL CONTRACTUAL SERVICES
6110 Materials and Supplies
TOTAL SUPPLIES
i
I
1, -SO 11350
103 103
1,453 1,453 1,453 1,453 1,453
4,225 41959 41625 41625 4,625
375 375 375 375 375
500 500
5929
,4,600 5,334 5,500 5,000 5,500
0.00%
0.00%
0.00%
0.00%
0.00%
0600
a
0.00%
0.00%
0.00%
0.00%
Fiscal Year 2 018/2 019
Annual Budget
Police - Overview
Vision Statement
The McHenry Police Department will maintain the highest
standards of criminal justice excellence in all aspects of policing.
Through these standards the McHenry Police Department will
define itself as a leader in the industry by those we serve and
protect.
Mission Statement
The Mission of the McHenry Police Department is to work in a true partnership with the citizens we
serve, enhance the quality of life and provide excellence in public safety.
Agency Values
The McHenry Police Department is charged with the responsibility to serve and protect the citizens
of McHenry. Our agency values provide the foundation for our mission and guide us in our effort to
meet the vision of the agency. The McHenry Police Department operates off the core values of;
Integrity, Courage, Service, Honor and Duty.
Agency Structure
The McHenry Police Department is the third largest law enforcement agency in McHenry County.
Organized into three main divisions of Administration, Support Services and Field Operations, the
McHenry Police Department serves and protects the citizens of McHenry and all those who visit.
Within each division specialty units are established to meet specific needs of the agency that support
our vision and goals.
The McHenry Police Department is a community oriented organization that operates off of a
problem -solving philosophy. The Administration Division is comprised of the Chief of Police, Deputy
Chief of Police and an administrative assistant. The Support Services Division and Field Operations
Division are each headed by Division Commanders who report to the Deputy Chief of Police. The
Deputy Chief of Police reports to the Chief of Police. All sections and units of the organization are
structured under one of the following divisions.
Field Operations Division
The Patrol Section is the largest component of the Field Operations Division and is responsible for
responding to both emergency and non -emergency calls for services from the public. The Patrol
Section is divided into three shifts in order to provide 24-hour police services. Each shift is
supervised by two Sergeants. Uniformed Patrol Officers and one Community Service Officer (CSO)
are responsible for partnering with the community to protect life and property and to maintain
peace, order and safety. In addition, this Division handles special assignments, self -initiated activities
and addresses community concerns. Additional Units within Field Operations include; Field Training
Unit, Canine Unit, Truck Enforcement Unit, Bicycle Patrol Unit, Street Crimes Unit, Major Crash
Assistance Team, Mobile Field Force Officers and Tactical Response Officers.
Support Services Division
The Support Services Division is comprised of the Investigation Section, Accreditation Unit, Training
Unit, Public Relations Unit, Communications Center and Planning/Research/Technical.
• Detectives work in plainclothes and provide expertise and resources to investigate crimes
that happen in McHenry. Detectives are able to investigate crimes that are often complex and
may extend over a significant period of time and geographical area. The cases are investigated
until an arrest is made or there are no longer leads to pursue. Many of the investigators have
received specialized training in the investigation of: homicides, child abuse, sexual assaults,
juvenile delinquency, crime scene processing, felony property crimes, robberies, felony
crimes against persons and cybercrime.
• The Accreditation Unit is utilized to revise and draft department policy and ensure that the
agency is performing its duties in a manner that is consistent with the Law Enforcement
Commission on Accreditation for Law Enforcement standards.
• The Training Unit is responsible for the management of all ongoing training for police
personnel. Training includes annual in-house training such as Defense Tactics and Firearms
along with all external training. Each officer and civilian employee is required to receive
mandated training in accordance with our departmental policy, CALEA standards and Illinois
statutes. This Unit is responsible for the coordination and implementation of thousands of
hours of training each year.
• The Public Relations Unit is charged with the responsibility to foster the community
orientated philosophy and problem -solving practices of the McHenry Police Department.
This is done through multiple educational and community events provided to our citizens by
the police.
• The Dispatch Center is the final component of the Support Services Division. This unit is a
consolidated dispatch center that provides emergency dispatch services for sixteen (16)
police, fire and EMS agencies. Although the center is owned and operated by the McHenry
Police Department a partnership between McHenry Township Fire, Harvard Police and
Woodstock Police allows for joint decision making on policy development and shared
financial responsibility. The Dispatch Center operates off of a separate budget which is
managed by the Chief of Police and Deputy Chief of Police.
• The Planning/Research/Technical sections coordinate the specific planning and research
activities of the department, complete short and long term special projects, attend to critical
risk management issues and research & write grant proposals. These sections also provide
staff services in regards to agency purchases, operations, maintenance, repair and
replacement of information technology related programs, systems, software and hardware.
Police - Organizational Charts
Police Overall
111
Police Administration
112
Commander of
Field Operations
Paul Funk
Sergeant -Day Shift Sergeant - PM Shift Sergeant- Midnight
Shift
Kevin Cox Nicholas Clesen Robert Lumber
Sergeant - Day Shift Sergeant - PM Shift Sergeant- Midnight
Shift
Michael Cruz Kelly Ducak Eric Sexton
Officer Officer Officer Officer & Duke K-9 Officer Officer
Anthony Mucciante Jill Foley Brian Aalto Larry Popp John Adams Michael Spohn
Officer Offier Officer Officer Officer Officer
Marc Fisher Ryan Pardue Omar Morales Sean Klechak Matthew Schmitt Robert Beaudoin
Officer Officer Officer Officer Officer Officer
James Harris Paul Prather Robert Klasek Matthew Voelker Katelyn Lorenz Joseph Lazicki
Officer Officer Officer Officer Officer Officer
Eve Kulcsar TBD Christina Torkelson Jack Zumwalt Samuel Shafer Bryan Wegner
Offier Officer Officer Officer Officer Officer
TBD TBD Josh Conway Roger Hendrickson Katelyn Lorenz TBD
Police - Investigations Division
114
Telecommunications
Dispatch Center Supervisor
Jennifer Synek /
Lead Telecommuicator TBD
Day Shift
Commander of
SupportServices
Ryan Sciame
Night Shift
Dispatcher
„ Dispatcher
Dispatcher
„ Dispatcher
Laura Cox
Tracy McNamara
Samantha Doty
Kelly Schmitt
Dispatcher
Dispatcher
Dispatcher
Dispatcher
Christine
Dawson
Gwendolyn Allen
Justin Leibach
Katherine
Fitzgerald
Dispatcher
Dispatcher
Dispatcher
Dispatcher
Dexter Barrows
Patricia Garrett
Ryan Miller
�� Donald Weinreis
Dispatcher ,� Dispatcher Dispatcher �, Dispatcher
Maria Joseph „ Grant Havens Niki Wilhelm „Katie Durband
Dispatcher
„
Dispatcher
Dispatcher
„
Dispatcher
Kathi Gallagher
��
Holly Neville
Laura Barnett
�
Patricia Garrett
Dispatcher
Charvon Walker
Records, Community Service
Officers, IT, Public Affairs
Marybeth Varvil Debra
Shoemaker
;ALEA / Training Community
Coordinator Service Officer
Stephanie Erb Dave Porter
IT Specialist Public Affairs
Officer Patrick
Jeffery Forester ■ Polidori
Police - FY17/18 Accomplishments
Personnel
• On October 201h, 2017 Deputy Chief John Birk was promoted to Chief of Police. Chief Birk is
a 19-year veteran of the McHenry Police Department. Chief Birk holds a Graduate Degree in
Law Enforcement Administration and is a graduate of both Northwestern University School
of Police Staff & Command and the FBI National Academy.
• On November 6th, 2017 Commander Thomas Walsh was promoted to Deputy Chief of Police.
Deputy Chief Walsh is a 22-year veteran of the McHenry Police Department and is a graduate
of Northwestern University School of Police Staff & Command.
• On November 20th, 2017 Sergeant Ryan Sciame was promoted to Commander of Support
Services. Commander Sciame is a 19-year veteran of the McHenry Police Department and is
a graduate of Northwestern University School of Police Staff & Command.
• On November 20th, 2017 Detective Kelly Ducak was promoted to Sergeant. Sergeant Ducak
is a 12-year veteran of the McHenry Police Department with extensive patrol and
investigative experience.
• On December 4th, 2017 Roger Hendrickson was sworn in as McHenry's newest police officer.
Officer Hendrickson has 7 years of prior law enforcement experience with the Dallas Texas
Police Department and the Elk Grove Village Illinois Police Department. He is a graduate of
Illinois State University.
Training
With a continued commitment to training, sworn officers and civilian staff members of the McHenry
Police Department participated in over 4,841 hours of training, both internally and externally.
Training directly affects the success of service provided to the community and liability placed on the
City. Some highlights were:
• Chief Birk and Deputy Chief Walsh attended the International Association of Chiefs of Police
Conference and received world -renown training in topics that addressed contemporary or
emerging issues confronting the law enforcement profession and the leaders of law
enforcement agencies worldwide.
• Chief Birk attended the annual International FBI Conference. Chief Birk received training in
topics related to; improving the administration of justice in police departments, defining new
law enforcement standards, building community trust, counterterrorism, and 21St Century
Policing.
• Commanders Sciame and Funk attended the annual Illinois Law Enforcement Alarm System
(ILEAS) Conference. This conference provided both Division Commander with training on
topics related to the Incident Command System, law enforcement mutual aid and
interoperable communication platforms.
• Deputy Chief Walsh and Commander Funk attended a week long class at FEMA's Emergency
Management Institute in Emmitsburg, Maryland. This class was attended by nearly 60
116
emergency responders from McHenry County. During the training all McHenry County
representatives worked together to conduct drills on the proper handling of All Hazard
Incidents in order to ensure interoperability and cooperation in future incidents that may
occur in McHenry County.
Advanced training was also conducted in:
• Law Enforcement Administration
• Canine Unit Operations
• Narcotics Investigations
• Weekly Case Law Updates
• Crime Scene Investigations
• Homicide Investigations
• Interview & Interrogations
• Special Response Teams Training
• Rapid Deployment Training
• Firearms Training
• Critical Accident Investigations
• Patrol Operations
• Arson Investigations
• State Mandated Annual Training Segments
Calls for Service
In the 2017 calendar year the McHenry Police Department handled 27,642 calls for service through
dispatch and police services. This is an increase of 2,109 calls from the 2016 year and represents an
overall increase of just over 8%. The following list highlights types and volume of specific areas of
investigation by the department. These investigations resulted in over 190 felony and misdemeanor
arrests during the 2017 year.
Homicide
0
Sex Offenses
25
Robbe
3
Burglary
25
Theft
362
Motor Vehicle Theft
8
Weapons Offenses
2
Domestic Disturbances
450
Drug Investigations
71
Fire Investigations
39
Death Investigations
39
Burglary to Vehicle
39
Juvenile Incidents
188
Mutual Aid
During FY 2017/18 the McHenry Police Department participated in multiple mutual aid requests.
Chief Birk (Team Commander) along with Commander Sciame and Sergeant Ducak participated in 6
taskforce callouts through the McHenry County Major Investigation Assistance Team, which resulted
in multiple arrests for 1st Degree Murder. Sergeant Cox (Team Commander) along with multiple
officers from the McHenry Police Department participated in six callouts through the McHenry
County Major Accident Assistance Team, which resulted in the investigation of five vehicle fatalities.
Public Safety Initiative
During FY 2017/18 the McHenry Police Department took on the opioid and heroin crisis head on.
Through a multi -tiered approach of solving this crisis, the McHenry Police Department has taken
action through enforcement efforts (arrests and drug seizures), the use of Narcan and participation
in the "A Way Out Program". During the calendar year the McHenry Police saved 28 lives through
the use of Narcan and enrolled 33 people into the "A Way Out Program". A total of
117
Accreditation
During FY 2017/18 the McHenry Police Department underwent its fifth CALEA reaccreditation
assessment resulting in our fifth reaccreditation. The Commission on Accreditation for Law
Enforcement (CALEA) has been an ongoing partnership for the police department since 2002. The
purpose of CALEA is to improve the delivery of public safety services, primarily by: maintaining a
body of standards, developed by public safety practitioners, covering a wide range of up-to-date
public safety initiatives; establishing and administering an accreditation process; and recognizing
professional excellence.
• The successful re -accreditation of the McHenry Police has proven that the McHenry Police
Department has set and followed the following goals set by CALEA.
• Strengthen crime prevention and control capabilities;
• Formalize essential management procedures;
• Establish fair and nondiscriminatory personnel practices;
• Improve service delivery;
• Solidify interagency cooperation and coordination; and
• Increase community and staff confidence in the agency.
• Developed a comprehensive, well thought out, uniform set of written directives.
• Established a preparedness program that is ready to address natural or man-made critical
I
ncidents.
• Strengthened the agency's accountability, both within the agency and the community.
• Limited the agency's liability and risk
Community Outreach
During FY 2017/18 the McHenry Police Department built upon their existing Public Relations efforts
by establishing a full-time Public Affairs Position within the agency. This position is filled by a current
police officer who is assigned these new responsibilities. Primary responsibilities of the position
include; management of agency social media, public information tasks, community outreach for
citizens and businesses regarding training opportunities and the support and participation of local
charity events.
The McHenry Police Department, in an effort to accomplish the agency's mission, participates in
many community outreach events each year. Below highlights some of the more notable events from
FY 2016/17.
Child Safety Seat Installations
With support from IDOT Grant Funding and business partners withinthe community, the McHenry
Police Department has seen a growing success with its Car Seat Installation Team. This team offers
free installation of child safety seats to members of the community by licensed installation
technicians. Currently the police department has 8 certified technicians on our team and together
they have held 8 community events and installed over 100 car seats.
Coffee with the Chief
Since 2012, the police department has held an active "Coffee with the Chief' Program. Currently this
program is a partnership with the McHenry Public Library. This public meeting is offered to
residents of McHenry as part of the McHenry Police Department's continued commitment in keeping
our citizens and community informed about their police department. These events are opportunities
for the Chief to obtain face to face feedback from our citizens. In FY 2017/18, topics presented
118
included Crime Scene Investigations, Crisis Intervention, Police Use of Technology, and the
department's Canine Unit.
School Safety
In FY 2017/18 the McHenry Police Department presented multiple school safety presentations at the
grade school level in our continuing effort to provide a safe environment for our children. These
presentations included uniformed officers teaching children on topics such as; Stranger Danger,
Summer Safety, Walking to School and Pedestrian Safety. These presentations were done
cooperatively with our Adopt -A -School program efforts. In addition, the Department partnered with
school administrators to conduct lockdown drills at each school. These drills are conducted to help
our schools prepare for a critical incident and are required by state law. In FY 2016/17, the
department continued to conduct double the required amount of training and lockdown drills that
are required by law. These continued efforts will help insure the safety of our children.
Adopt -A -School Program
In FY 2017/18, the McHenry Police Department continued the agency's "Adopt -A -School"
program. This program pairs individual officers with specific grade schools in town to increase
awareness and safety within those schools. The program entails individual dayshift patrol officers
being assigned there own specific grade school within the community. The objective is for the
officers to get to know the faculty and students at their respective school so that the police
department can provide a better service. This program involves activities such as foot patrols,
classroom instruction blocks, training exercises, and a community approach to solving problems
within our schools. The plan is designed to further the McHenry Police Department's mission of
increasing school safety in our local schools.
Garden Quarter Resource Center
The Garden Quarter Resource Center is a non-profit organization that focusses on providing services
to McHenry's Hispanic population and Latino community. Since its inception the McHenry Police
Department has been a community partner with the Garden Quarter Resource Center. Over the years
the City has seen the Resource Center grow tremendously and with the FY 2017/18 over 150 children
and 180 adults obtained services. The center is a non-profit organization that focusses on helping at -
risk youth, providing academic support, providing positive adult role models, and education adult
parents on how to play a positive role in their child's life. The Police Department takes an active role
by introducing officers in their educational programs and extra -curricular activities. The impact of
this participation has help to build strong relationships with our Latino community.
Special Olympics Illinois
Special Olympics is a global organization that unleashes the human spirit through the transformative
power and joy of sport, every day around the world. Through programming in sports, health,
education and community building, Special Olympics is changing the lives of people with intellectual
disabilities solving the global injustice, isolation, intolerance and inactivity they face. Special
Olympics Illinois provides opportunities for more than 22,500 athletes, more than 20,000 Young
Athletes, 45,000 volunteers and thousands more people statewide through 18 area programs in all
102 counties of the state.
The Law Enforcement Torch Run is the single largest year-round fundraising vehicle benefiting
Special Olympics Illinois. The annual intrastate relay and its various fundraising projects have two
goals: to raise money and to gain awareness for the athletes who participate in Special Olympics
Illinois. The Law Enforcement Torch Run has raised nearly $43 million over 31 years while increasing
awareness of Special Olympics athletes and their accomplishments.
119
In order to raise funds for this worthwhile cause, the McHenry Police Department participated in the
Cop on Top event at Dunkin' Donuts, Polar Plunge, Plane Pull and Butter Burger and Badge Event at
Culvers. Our combined efforts helped to raise over $15,700.00. In June of 2017 several officers
participated in a leg of the Torch Run that ended at our own Knox Park and attended the Illinois
Special Olympics Games as coaches.
No Shave Fundraiser
During the FY 2017/18 Chief Birk instituted a new fundraising campaign to benefit those in need
during the winter months. This campaign allowed officers to grow beards by making personal
contributions to specific charities. In November officers and employees personally contributed over
$1,000 to breast cancer research. In December officers and employees paid over $800 to grow beards
all of which was used towards a McHenry Family in need at Christmas. Presents were bought and
three children and their aunt were surprised for Christmas Day! In January, February and March
officers were able to grow beards if they participated in the annual St. Baldrick's Event. Over a dozen
officers and employees joined the police department's St. Baldrick Team raising thousands of dollars
and shaved their heads for an amazing cause.
120
Police - FY18/19 Goals & Objectives
Below are the highlighted Goals and Objectives that the McHenry Police Department will focus on
during the 2018/19 fiscal year.
• Continue to provide the highest level of police services to the citizens of McHenry.
• Complete the process of developing a hiring list of highly qualified lateral transfers.
• Continue with the department's renovation /expansion phases in order to meet the
department's performance and usage needs.
• Seek and secure the highest level training opportunities for all agency members.
• Continue and expand the department's public relations/community involvement programs.
• Continued support for overall community school safety through the School Resource Officers
and the Adopt -A -School program.
• Continue the department's Traffic Safety Plan in order to keep our roadways safe.
• Maintain fiscal responsibility and reduce any financial burden on the City through grant
funding.
• Continue to maintain professional standards by being assessed through the Commission on
Accreditation for Law Enforcement Agencies (CALEA).
• Continue to actively partner with other organization such as MCAT, MIAT, NIPAS and ILEAS
in an effort to share police resources and reduce operational costs.
• Replace the department's aging firearms (handguns).
• Replace four marked police vehicles and emergency equipment.
• Replace seven in -squad computers.
• Reduce the amount of opioid (heroin) overdoses and deaths for 2018 as compared to 2017.
121
Police - FY18/19 Performance Measures
•
Item
Goal
Description
.. -
Actively suppress
Did UCR reportable
property crime and crimes
Property crimes and
Crime Rate
against persons in order
crimes against person
February 15, 2018
to ensure the safety of the
totals stay the same or see
McHenry Community and
a reduction?
its citizens.
Manage police department
resources in an efficient
To complete the FY 17/18
and effective manner
by keeping expenditure at
Annual Police Budget
ensuring that community
or under approved police
April 30, 2018
needs are met.
budget.
Create a safe roadway
system within the City by
To complete the 2017
enforcing traffic laws in
A reduction is traffic crashes
Traffic Crash /Roadway
calendar year with an
order to create safe
investigated in 2017 as compared to
Safety
overall reduction in traffic
driving behavior.
2016.
accidents.
To improve the delivery of
public safety services,
primarily by: maintaining
a body of standards,
1. Review and revise as needed
developed by public safety
To successfully review and
all agency policies by
practitioners, covering a
revise policies in
January 2019.
Accreditation
wide range of up-to-date
accordance with new laws
2. Complete all required CALEA
public safety initiatives;
or practices; Complete
standard proofs and reports
CALEA proofs and reports
establishing and
for the 2018 calendar year
as required.
administering an
by February 2019.
accreditation process; and
recognizing professional
excellence.
1. Improvements to
community events such
as; Child Safety Seat
Installations, Coffee with
Maintain a strong working
the Chief, School Safety,
relationship with the
Adopt -A -School Program,
An increase in attendance to all
McHenry Community and
Garden Quarter
community events, positive community
Community Relations
its Citizens in order to
Community Days, Special
feedback and the launch of new
maintain trust and
Olympics Illinois, safety
initiatives by April, 2019.
support in our mission to
Expos and MCPOA Events
serve and protect.
2. Continued improvement
to Public Relations and
Social Media Interaction.
122
Provide the highest level
2018/19 McHenry Police
of professional police
Department Training Plan.
Meet or exceed all training
Training
services with the lowest
Illinois Police Training Act
requirements in the calendar year
liability or risk to the City
2018, established by departmental
50/ILCS 705/7
and the Citizens who we
policy and Illinois State Statute.
serve.
Arrest / Investigation
enforcement action of the
Obtain a reduction in the amount of
Reduce the amount of
illegal sale and use of
opioid (specifically heroin) overdoses
Narcotics Enforcement
opioid usage and
opioids. Narcan
and deaths in McHenry for the 2018
nt.on
depin
overdoses.
calendar year.
WayPart
in the "A Way Out"
the
Program.
See alternative ways to
Annual review of all grant
Awarded grant funding for traffic
fund police related
submission applied for
enforcement and ballistic vest
Grants
projects that support the
and all grant submission
purchases with a minimum of two
mission of the
awarded.
additional grants to be applied for.
organization.
123
Police Department - Fund
ries/Benefits
4010 Salaries (Includes 4030 in FY17/18) 770,359 938,382 356,353 311,948 319,311 327,068 15,120 4.85%
4020 Sworn Salaries _j 41086,773 4,146,478 4,318,074 41407,544 41423,238 4,5551484 147,940 3.36%
4030 Salaries - Part Time 101,054 33,886 - 19,800 19,800 0.00%
4050 Overtime 55,129 47,009 2,305 51000 j 21774 51000 0.00%
4055 Sworn Overtime 225,595 234,891 241,823 244,500 245,290 244,500 0.00%
4080 Career Ladder j 41665 15,230 81000 71622 13,000 51000 62.50%
4310 Health Insurance 954,062 1,083,659 992,132 1,040,717 920,199 986,275 (54,442) -5.23%
4320 Dental Insurance 38,438 42,838 36,564 38,772 35,928 38,096 (676) -1.74%
4330 Life Insurance 2,371 21435 21089 21070 2,012 21122 52 2.51%
4340 Vision Insurance 21521 2,308 ! 1,920 2,2011 21089 11967 (234) 10.63%
4410 FICA Medicare 385,157 393,039 ! 362,641 380,740 I', 370,790 395,111 14,371 3.77%
4420 IMRF Retirement 118,119 128,547 j 46,504 41,099 40,353 42,127 1,028 2.50%
4430 Contribution - Police Pension_ 11295,101 11386,205 1,521,914 1,874,219 , 1,868 798 21019,703 145,484 7.76%
II- - _
4510 Uniform Allowance 26,077 30,084 25,318 29,800 27,589 29,800 0.00%
TOTAL SALARIES/BENEFITS 81065,421 81469,761 70922,867 81386,610 81265,993 81680,053 293,443 3.50%
I
Contractual Services
5110 Contractual _ 81,962 91,581 85,676 871020 96,54511 89,160 2,140 2.46%
5310 Postage and Meter 31454 31585 2,817 31000 21224 31000 0.00%
-- -- -- - _ --
5320 'Telephone 45,073 50,650 �i 55,687 49,500 57,055 29,712 (19,788)-39.98%
5370 Repair and Maintenance 51,042 47,987 49,927 52 500 62,795 52,500 0.00%
j 5410 ;Dues 21221 11325 2,320 21500 38 1,800 (700)-28.00%
5420 jTravelExpense 71391 11,448 15,277 21,000 81837 20,500 (500) -2.38%
5430 Training 19,913 17,588 34,038 j - 40,855 -__ 33,350 28,225 (12)630)-30.91%
5440 Tuition Reimbursements 7 271 7 755 11708 10,000 8 018 9 000 1000-10.00%
P -
5450 ;Publications 390 595 256 800 446 800 0.00%
5510 Utilities 11340 0.00%
TOTAL CONTRACTUAL SERVICES 220,057 232,514 257,706 267,175 269,308 234,697 (32,478)-12.16%
N
U01
6110 Materials and Supplies
6210 Office Supplies
6250 Gasoline and Oil
6270 Small Equipment
6310 K-9 Unit
6340 Forfeiture Expenses
TOTAL SUPPLIES
M
i
14,574 16,785
14,409 167185
j
114,901 92,851
91719 17,104
31998 31993
976 1,497
rurcnase or aervrces - mrormanon r ecn
TOTAL OTHER
8300 !Capital -Equipment
8400 Capital - Vehicles
TOTAL CAPITAL OUTLAY
29,648 20,800 I 1
17,541 17,000 ! 1
83,948 100,000 7
369
722
22,900
17,200
80,000
5,025
5,300
158,577 148,415 149,577 147,940 113,106 130,425
267,833 i 267,833 234,349 229,083 229,083 229,083
214,749 228,746 162,405 244,816 244,816 288,107
482,582 496,579 396,754 473,899 473,899 517,190
i
26,342 119,890 14,400 54,473 19,650
87,216 31,310
113,558 151,200 14,400 54,473 19,650
2,100
200
(20,000)
185
(17,515)
43
43
,291
,291
5,250
5,250
10.10%
1.18%
-20.00%
3.82
0.00%
0.00%
-11.84%
36.46%
0.00%
36.46%
- ,4
�nry Disnatch Ce
:�:��►�I�I:1K1
NERCOM - Overview
Mission Statement
The Mission of the McHenry Police Department is to work in a ��; i
true partnership with the citizens we serve, enhance the quality i,
of life and provide excellence in public safety. % 0 %0
Primary Functions 00
To provide emergency and non -emergency phone answering and
dispatch services to our police and fire customers.
The McHenry Dispatch Center (DBA — NERCOM) is a collaborative effort between four public entities.
This collaborative effort is a partnership established by the McHenry Police Department with the
McHenry Township Fire Protection District, the Woodstock Police Department and the Harvard
Police Department. In the spirit of cooperation between communities and taxing bodies, and with a
goal of increasing efficiency and effectively using public tax dollars, the four above listed agencies
created this partnership. Through an Intergovernmental Agreement (IGA) each agencies shares the
responsibility of providing policy and procedural guidance regarding dispatch services. Partnering
agencies share fiduciary responsibilities identified through the IGA by a defined percentage of
liability. In short, NERCOM expenses are divided based on the calls for service of the various partners,
less revenues received from twelve (12) additional customer agencies.
In an overview of the day-to-day operations of the center, at its optimal staffing level NERCOM is
manned twenty-four hours a day, seven days a week, 365 days a year by a minimum of five
dispatchers at all times. Each NERCOM dispatcher is crossed -trained to be proficient in both police
and fire/rescue disciplines of dispatching. In addition, NERCOM provides Emergency Medical
Dispatch services to all of our
customers. Roles defined within the
dispatch center include 911 call
takers, police dispatch and fire/EMS
dispatch. These defined roles allow
for the center to provide services in
the most efficient and effective way
exceeding industry standards.
Staffing for NERCOM consists of
twenty (20) full-time civilian sworn)
n-
sworn) telecommunicators and six
(6) part-time telecommunicators
working twelve hour rotating shifts.
ivnAu IVi is supervised uy one t1J
full-time lead telecommuncator and
one (1) full-time civilian Telecommunications Center Supervisor. All employees of the dispatch
center are employed by the McHenry Police Department under the authority of the McHenry Chief of
Police. Daily operational oversight of the dispatch center is assigned to the McHenry Police
Commander of Support Services.
127
NERCOM Board of Directors /Police Chief John Birk
Commander of Support Services Ryan
Sciame
NERCOM Supervisor Jennifer
Synek
Lead Telecommunicator
Day Shift
Night Shift
Dispatcher ■. Dispatcher Dispatcher '' Dispatcher
G. Allen E, G. Havens S. Doty 11 K. Schmitt
Dispatcher - Dispatcher
Dispatcher Dispatcher
D. BarrowsON M. Joseph J. Leibach 11 K. Fitzgerald
Dispatcher � Dispatcher
Dispatcher Dispatcher
L. Cox , A. McKendry R. Miller 11 D. Weinreis
Dispatcher .. Dispatcher Dispatcher Dispatcher
C. Dawson ■, T. McNamara N. Wilhelm 11 K. Durband
Dispatcher ■. Dispatcher Dispatcher Dispatcher
K Gallagher ■, H. Neville P. Garrett L. Barnett
Dispatcher
C. Walker
NERCOM - FY17/18 Accomplishments
Personnel
The following individuals were hired during FY 2017/18 bringing our full-time telecommunicator
staffing levels to twenty-one (21).
• Samantha Doty was hired June 5, 2017 as a full-time dispatcher in our communications
center. She was a previous full time dispatcher with the Northern Illinois University Police
Dept. for approximately 1 year.
• Donald Weinreis was hired July 17, 2017 as a full-time dispatcher in our communications
center. He was a previous full time dispatcher with the Zion Police Department and Lake
County Sheriff's Office with a combined 19 years of experience.
• Kaitlin Durband was hired August 14, 2017 as a full-time dispatcher in our communications
center. She was a previous full time dispatcher with the Racine County Sheriff's Office for 6
months.
• Laura Barnett was hired August 30, 2017 as a full-time dispatcher in our communications
center. She was previously employed by Meijer in their Loss Prevention Department for 14
years.
• Ian Abrahamsen was hired September 1, 2017 as a part-time dispatcher in our
communications center. He was previously a full-time dispatcher with our department for 2
years and then he became a full-time police officer for Carpentersville Police Department in
January of 2015.
New Positions:
During FY 2017/18 the McHenry Police Department created a second supervisory position within
the dispatch center. This position, known as a Lead Telecommunicator, is a working
telecommunicator with supervisory responsibilities. The Lead Telecommunicator works under the
Dispatch Center Supervisor working evening hours in the center in order to provide supervisory
direction during non -business hours.
Public Relations:
During FY 2017/18 NERCOM introduced a new on-line application called "Frontline". This new app
is designed to allow residents of the communities we service to make overnight parking request via
the internet or phone app. Additional services are also available at the discretion of the customer
agency and include; neighborhood watch requests, bicycle registration and public works
notifications.
Training
The McHenry Police Department recognizes the need to make sure our telecommunicators offer the
highest level of service to all we serve. During FY 2017/18 the dispatch center was vigilant in
searching out training opportunities for our telecommunicators. In October of 2017 we entered into
an agreement with the Police Law Institute to offer monthly trainings to all tele communicators. This
is an online training program which offers real life scenario based training for police, fire and EMS
services.
129
During FY 2017/18 employees of the dispatch center completed the following trainings:
Employee
Training Description
Dates Attended:
SAMANTHA DOTY
EMERGENCY MEDICAL DISPATCH
06/05 - 06/07/2017
DONALD WEINREIS
EMERGENCY MEDICAL DISPATCH
08/14 - 08/16/2017
KAITLIN DURBAND
EMERGENCY MEDICAL DISPATCH
08/14 - 08/16/2017
GWEN ALLEN
COMMUNICATIONS TRAINING OFFICER
09/18-09/20/2017
JENNY SYNEK (SUPERVISOR)
9-14 QUALITY ASSURANCE
9/18/2017
JUSTIN LEIBACH
COMMUNICATIONS TRAINING OFFICER
09/26 - 09/28/2017
KELLY SCHMITT
COMMUNICATIONS TRAINING OFFICER
09/26 - 09/28/2017
LAURA BARNETT
EMERGENCY MEDICAL DISPATCH
10/02-10/04/2017
JENNY SYNEK (SUPERVISOR)
NENA EDUCATION SUMMIT 911 CENTER
SUPERVISOR PROGRAM
10/22 TO 10/25/2017
NIKKI WILHELM
IPSTA CONFERENCE
11/05 TO 11/11/2017
JENNY SYNEK (SUPERVISOR)
IPSTA CONFERENCE
11/05 TO 11/11/2017
ALL EMPLOYEES
ANNUAL CPR CERTIFICATION
2017/18
ALL EMPLOYEES
ANNUAL ICS TRAINING
2017/18
ALL EMPLOYEES
ANNUAL LEAD CERTIFICATION
2017/18
ALL EMPLOYEES
MONTHLY POLICE/FIRE/EMS SCENARIO
BASED TRAINING
2017/18
Funding Opportunities
The overall goal of NERCOM is to offer excellence in emergency dispatch services at a cost that is
competitive for all participating governmental agencies. NERCOM is proud to services sixteen (16)
total agencies at an operational cost that is significantly lower than all other PSAPs, proving that
consolidation can save money without sacrificing service.
During the FY 2017/18 the McHenry Police Department applied for and was awarded grant funding
by the State of Illinois to help offset the cost of expanded our center into a regional dispatch center.
In January of 2018, the McHenry Police Department received $1,162,799.00 in funds that were used
to offset over 85% of the cost to renovate and expand the dispatch center.
Computer Automated Dispatch (CAD) System
During FY 2017/18 NERCOM received a new Computer Automated Dispatch System (CAD) which
was purchased by the McHenry County Emergency Telephone Board. CAD is the computer software
used in the dispatch center that logs, tracks and dispatches police/fire/EMS to emergency calls for
service. This new program will prepare NERCOM to upgrade from Enhanced 911 services to Next
Generation 911 Services in FY 2018/19.
Calls for Services
During the 2017 calendar year NERCOM answered 35,696 Emergency 911 calls and 96,028 non -
emergency administrative calls. An additional 53,542 outgoing calls were made on the behalf of
our customers for additional tasks. Currently NERCOM handled the following calls for service during
the 2017 calendar year:
130
McHenr Cit PD 27,642
Johnsburg PD 41323
MMenry Fire 5,651
Marengo Rescue 1,163
Marengo Fire 306
Union Police 109
Union Fire 84
Maren o Police 4,855
Harvard Police 6,007
Harvard Fire 1,348
Woodstock Police 13,556
Woodstock Fire 31194
Fox River Grove Police 4,834
Fox River Grove Fire 423
Cary Fire 11344
Nunda Fire 191
fi[C�1
NERCOM - FY18/19 Goals & Objectives
Below are the highlighted Goals and Objectives that the McHenry Police Department Dispatch Center
All focus on during the 2018/19 fiscal year budget.
• Improve the quality of services provided to 1-0 safety agencies.
• Strengthen our customer base through strong customer relationships.
• Development and revision of dispatch center policies and operational procedures.
• Hire additional staff as needed.
• Establish and implement an actionable timeline for the CALEA Accreditation of the dispatch
center.
• Ensure that the McHenry Police Department is active in applying for grants related to
equipment and personnel funding for the dispatch center.
• Continue to seek out alternate sources of funding to supplement and/or reduce operational
costs or fund continuing successful programs.
• Maintain the minimum level of training for all dispatchers as dictated by policy and statute.
• Install "Next Generation 911 Phone System" for the dispatch center and conduct all related
advanced training.
• Obtain Emergency Medical Dispatch (EMD) ACE Accreditation through Priority Dispatch.
132
NERCOM - FY18/19 Performance Measures
Performance
Performance
PerformanceItem
Proposed
.. l
Measure
Outcome(s)
Measure will be
Obtain state certification
Meet the standard goal of
All telecommunicators shall hold a
evaluated continually
for Emergency Medical
priority dispatch for
current EMD certification from IDPH at all
throughout the year and
Dispatching
certification
times.
produced in annual
report.
Telecommunicator shall, within 60
Measure will be
Initially process 95% of
seconds of answering an emergency call,
substantiated through
emergency calls within 60
acquire location of incident, phone
the use of quarterly
Emergency Call Processing
seconds of them being
number of caller, complaint type, and
reporting, which will
answered.
create a CAD event OR complete a PSAP to
culminate into an
ILPSAP
transfer at least 9S% of the time.
annual report.
Measure will be
Dispatch 95% of
substantiated through
Telecommunicator group shall dispatch at
Emergency Call
emergency calls within 90
the use of quarterly
Dispatching
seconds of them being
least of all emergency calls within
reporting, which will
90 seconds
onds of them being answered.
answered.
culminate into an
annual report.
Telecommunicator shall, within 60
Measure will be based
All Criminal Hot Files will
minutes of receiving all necessary
on regular auditing of
LEADS Hot File Entry
be entered without
information, complete each Criminal Hot
the LEADS CHF records
delay.
File entry into the LEADS/NCIC
contained within the
database.
911 center.
Telecommunicator shall, within 120
Measure will be
Initially process 95% of
seconds of answering a non -emergency
substantiated through
Non -Emergency Call
emergency calls within 90
call, acquire location of incident phone
the use of quarterly
processing.
seconds of them being
number of caller, complaint type, and
reporting, which will
answered.
create a CAD event OR complete a PSAP to
culminate into an
PSAP transfer at least 95% of the time.
annual report.
Measure will be
Dispatch 95% of non-
Telecommunicator group shall dispatch at
substantiated through
Non -Emergency Call
emergency calls within
least 95 % of all non -emergency calls
the use of quarterly
Dispatching
150 seconds of them being
within 150 seconds of them being
reporting, which will
answered.
answered.
culminate into an
annual report.
133
Dispatch Center - Fund Suxrnnal<y
Wa
$
(Fund 100, Departmnt 23)
Amended
Account
Account
FY14/15 FY15/16 FY16/17
FY16/17
FY17/18
FY17/18
FY17/18
FY18/1
Number
Description
Actual Actual Budget
Actual
Budget
Budget
Estimated
Budget
4010
Salaries
896,639
787,410
1,3871146
1,387,146
11341,037
1,436,955
4030
_
Salaries - Part Time _
�- 71,527
20,728 !
30,000 1
30,000
34,954 1
30,000
4050
Overtime
55,000
43,233
90,000
90,000
154,423
110,000
_
--
- -
4310
Health Insurance
1 292,094
214,437
429,110
429,110
318,564
347,918
4320
Dental Insurance
8,919
71706
15,476
15,476
12,038 !!
13,423
4330
Life Insurance
983
446
i
890
890
753
890
_
4340
Vision Insurance
422
463
846
770 !
852
_
_
_
4410
FICA Medicare
-
- --
78,272 !:
61,559
115,297
_846
115,297
112,205
120,637
4420
IMRF Retirement _
130,702
108,904
188,779
188,779
187,044
190,275
4510
Uniform Allowance
53500
2,142
8,700
8.700
_ _
2.300
8.400
TOTAL SALARIES/BENEFITS
I
� _ 5110 Contractual _
w
•P 5310 1Postage and Meter
5320 liTelephone
5420 LTravelExpense
5430 Tra nine g
5440 Tuition Reimbursements
1 5510 Utilities
TOTAL CONTRACTUAL SERVICES
6110 � Materials and Supplies
6210 Office Supplies
6270 'Small Equipment
TOTAL SUPPLIES
- - 1,540,058 1,247,028 2,266,244 2,266,244 2,164,088 2,259,350
i
�I i -
22,980 35,481 103,050 175,342 170,8661111 111,300
250 50 50 24 50
41032 1,317 4,040 4,040 13,155
6,050 15 51250 51250 11922 5,250
91400 1,043 9,540 7,017 91540
3,500 _ 3,500 1_ 3,500 874 3,500
500 500 500 500
nce
Variance
��
49,809
3.59%%
0.00%
20,000
22.22%
(81,192)
-18.92%
(21053)
-13.27%
0.00%
6
0.71%
5,340
4.63%
11496
0.79%
(300)
-3.45%
(6,894)
-0.30%
8,250 8.01%
0.00%
(4,040)-100,00%
0.00%
9,540 0.00%
0.00%
0.00%
46,71E 37,856 116,390 198,222 193,858 130,140 13,750 11.81%
- - 15,520 11,712 9,795 9,795
9920 'Purchase of Service -Risk Management � -
9922 Purchase of Service IT �
TATAT ATTJT7D
1,828 '
S,595
468
2,200
349
2,000
2,645
91795
0.00%
0.00%
0.00%
0.00%
5,000 18.19%
li E A R T O F T H E F O X R I V E R
Fiscal Year 2018/2019
Annual Budget
Public Works
Administration
135
Public Works Administration - Overview
car (-1cl J
/'J1
r, f 11
LI.
Okhs
Public Works Departmental Mission
The mission of the Public Works Department is to respond to the
community needs consistent with the policies determined by the City
Council, to maintain a working environment built upon trust, respect
and citizen involvement, and to achieve the city's goal of being
responsive to resident needs and focusing on customer service.
The Public Works Department consists of six operating sections that
provide high quality services to the citizens of our community. These
sections include: Administration, Fleet Maintenance, Streets
Maintenance, Water Division, Wastewater Division and Utility
Division.
Public Works Administration Mission
It is the purpose of the Public Works Department's Administration Division to provide direction and
administrative support to the Department of Public Works. To complete Public Works Projects for
the public welfare, to the highest quality, in accordance with legal and contractual standards, and in
accordance with City Statutes. The Public Works Department is responsible for the management of
all City Engineering and Construction Projects, Request for Proposal solicitation for Engineering and
Construction projects, contract enforcement, and general technical assistance for the Public Works
Department.
There are several primary operating functions within the Public Works Administration Division.
To work with the Mayor, Council and City Administrator to ensure that the City's policies and
programs for the department are carried out in addition to managing the department.
p To provide engineering services for a number of projects, plan review, and monitoring the
work of the City's contracted engineering.
To provide administration, oversight, budgeting and capital improvement program
planning/implementation for the Street Division, Water Division, Wastewater Division,
Utility Division and Fleet Maintenance Division of the Department of Public Works.
The Public Works Administration Division includes the Director of Public Works Jon Schmitt, Project
Engineer Troy Strange, Administrative Assistant Nancy Lorch, and Office Assistant Nicole Meyer.
136
Public Works Administration - Organizational Chart
137
Public Works Administration - FY17/18 Accomplishments
® Administration of the construction of the consolidation of the Central Wastewater
Treatment Plant (CWWTP) and the South Wastewater Treatment Plant (SWWTP)
® Management of biennial bridge inspections
® Administration of the "in-house" preparation of bid specifications, bidding services and
construction observation of the Spring tree planting program
Administration of e-waste and Christmas lights recycling programs
• City Council adoption of the updated tree topping ordinance
• Administration of Honorary Street Sign Policy
• Administration of specifications, bids and purchase of Street Division Pickup Truck and
Sewer Division Hook Truck with containers
• Administration of "in house" preparation of bid specification, bidding services and contract
award of City-wide Mowing Services
• Administration and oversight of Refuse Collection Contract
• Participated in joint bid for sidewalk cutting of uneven panels with several McHenry County
local agencies. Preformed construction observation in house"
• Negotiated a collective bargaining agreement with IUOE Local 150
• Negotiated right -of --way exchange on Lincoln Road to facilitate Lincoln Rd/Pearl St
Improvement construction
• Awarded "Tree City USA" for the 23rd consecutive year.
Management of consultant contract for completion of Engineering Design Services for Green
Street Bridge Rehabilitation project.
® Completion of $1.1 million 2017 Road Program and performance of all Engineering Services
"in house" with assistance from Public Works Superintendents.
® Management of consultant contract for completion of Phase 1 Engineering for Curran Road
S-Curves.
138
Management of consultant contract for completion of Phase II Consultant Engineering
Services for Pearl Street and Lincoln Road Project. Final plans, specifications, and estimate
submitted to IDOT for April 27, 2018 State Letting.
Complete selection process for Phase III Consultant Engineer for Pearl Street and Lincoln
Road Improvements per Federal Quality Based Selection guidelines.
Management to complete construction observation and contract administration for 2017
Crack Sealing Program.
Complete selection process for Phase I Engineering Services for Bull Valley Road Multi Use
Path project.
Act as lead agency and prepare contract documents on joint contract for Reclamite
Pavement Rejuvenator with several other local Municipal Agencies.
Management of consultant contract for completion of Engineering Design Services for
Timothy and Clover Water Main Replacement Project.
Complete construction observation and contract administration for 2017 Sanitary Sewer
Lining Program and Sanitary Manhole Lining program.
Submittal of IEPA Section 319 Grant Application requesting State Funding Participation for
Lakeland Park Drainage Ditch upstream detention and sediment control facility.
Management of consultant contract for completion of Phase 1 Engineering Design Services
for Elm Street Lighting Improvements. IEP Grant Submittal November 2017 and Phase 1
Report finalized January 2018.
Management of consultant contract for completion of Engineering Design Services for
Recreation Center Parking Expansion Project.
Management of consultant contract for completion of Engineering Design Services for
Downtown Parking Expansion and Parking Lighting Improvements.
Revised projects section of Public Works Website to improve RFP/Bid Section of Public
Works Website to provide better contract information for potential bidders and vendors.
139
Public Works Administration - FY18/19 Goals & Objectives
• Provide effective communication with the City residents about the various Public Works
projects, programs, and services
• Ongoing management of the city's refuse collection contract and e-waste/ Christmas lights
recycling programs
• Provide responsible financial leadership while maintaining existing Public Works services
• Begin data collection for Storm Sewer GIS Database
• Administer specifications, bids and purchase of Public Works Department's equipment and
vehicles
• Select firm for engineering services for Central Avenue Storm Drainage Improvements,
manage all consultant engineering services, and construct improvements in FY18/19.
• Perform all Engineering Services for 2018 Road Program "in house"
® Select firm to perform Phase III Construction Engineering Services for Green Street Bridge
Rehabilitation and manage project.
® Select firm to perform Phase III Construction Engineering Services for Recreation Center
Parking Lot Expansion and manage project.
• Select firm to perform Phase III Construction Engineering Services for Downtown Parking
Lighting Improvements and manage project.
Manage Phase II Design Engineering Services for Curran Road S-Curves and submit final
plans, specifications, and estimate for early 2019 State Letting.
• Act as lead agency and manage Phase I Engineering Services for Bull Valley Road Multi Use
Path project.
• Select firm to perform Phase III Construction Engineering Services for Timothy Lane and
Clover Avenue Water Main Replacement and manage project.
Manage Phase III Construction Engineering Services for Pearl Street and Lincoln Road
Project.
140
Public Works Administration - FY16/19 Performance Measures
PerformancePerformance
•-
•
Item
Goal
Measure
Proposed
Develop an updated CIP and
Was the CIP undated and
Meeting deadline dates
Capital Improvement Program
transmit to Finance and
transmitted to the Finance and
(CIP)
Administration Department
Administration Department by
the due date?
Develop and present a
Was a operating budget
Meeting deadline dates
Annual Budget
operating budget for to the
transmitted to the Finance and
Finance and Administration
Administration Department by
Department
the due date?
Respond to a resident complaint
% of time that Public Works
Respond to resident
Resident Complaints/Inquires
or inquiry within one working
Department staff responds
complaints/inquiries within one
day from receipt
within one day
working day 100% of the time
throughout the year
Request for Proposals (RFP)
Develop all RFP's for
All RFP's completed, issued, and
Development
Engineering Services and for
Status of RFP's for budgeted
contracts awarded for projects
Construction projects for which
projects
in current budget year
the City performs "in house'
engineering services
Manage City Engineering and
Schedule and Budget status of
All Engineering and
Project Management
Construction Projects and
City Engineering and
Construction Projects
assure projects are completed
Construction Projects
completed on time and on
on time and on budget
budget
Assure that City Engineering
All contract work and scope
Contract Enforcement
and Construction Projects are
Quality Assurance of City
items are completed in
completed in accordance with
Engineering and Construction
accordance with contract
contract documents and scope
Projects
provisions
of services
Review and issues utility permit
All issued permits are
Permit Reviews
applications and assure that
completed and closed per the
City infrastructure is
Status of issued permit
terms of the original permit
undamaged or is fully restored
application. No/minimal
upon completion of permit
outstanding permits.
work
Technical Support for
Provide all requested technical
Completion status of requests for
All requests for technical
Maintenance Staff
support for City Maintenance
technical assistance
assistance are completed on
Superintendents and
"as needed" basis
Crew Leaders
141
Public Works Administration = Fund Summary (Fund 100, Department 30)
4010
Salaries
4050
Overtime
4310
Health Insurance
4320
Dental Insurance
4330
Life Insurance
4340
Vision Insurance
4410
FICA Medicare
4420
IMRF Retirement
4510
Uniform Allowance
TOTAL SALARIES/BENEFITS
5110 Contractual
N 5310 Postage and Meter
5320 Telephone
5410 Dues
5420 Travel Expense
5430 Training
TOTAL CONTRACTUAL SERVICES
154,075
159,263
357,230
271,500
273,904
288,691
17,191
73
36,847
41,096
78,795
74,234
62,757
57,680
(16,554)
1,539
11610
2,656
21114
1,994
2,057
(57)
79
79
158
140
191
164
24
81
75
152
139
141
139
11,318
11,677
26,462
20,770
20,247
22,085
11315
20,479
20,970
46,680
34,698
34,433
35,086
388
150
150
150
224,418
234,843
512,283
403,745
393,667
406,052
2307
6210 'Office Supplies
6270 Small Equipment
6950 Forestry (Moved to Streets in FY17/18)
TOTAL SUPPLIES
® - 380- -- 1'356 62,854L_ 3,500 996 3,500
485 400 377 400
1,369 11378 1,775 11850 2,030
229 285 674 380 202 380
_ --
32 li 34 500 500
803 138 11509 1 2,000 267 2,000
3,590 4,155 67,331 8,630 3,872 6,780
1,075 1,255 999 1,000 651 11000
1,661 1,327 2,000 2,000
_ --r- -
2,585 157,576
2,736 51167 158,575 31000 651 31000
9920 Purchase of Service -Risk Management 9,019 9,019 10,081 13,384 13,384 13,384
9922 Purchase of Service - IT 13,530 14,079 17,433 17,707 17,707 20,299
TOTAL OTHER 22,549 23,098 27,514 31,091 31,091 33,683
(1,850)
(1,850)
2,592
2,592
6.33%
0.00%
-22.30°/a
17.14%
0.00°/a
6.33%
1.12%
0.00°/a
0.57%
0.00%
0.00%
-100.00%
0.00%
0.00%
0.00%
-21.44%
0.00%
0.00%
0.00%
0.00%
0.00%
14.64%
8.34%
Fiscal Year 2 018/2 019
Annual Budget
Public Works
Street Division
143
Public Works Street Division - Overview
Public Works Street Division Mission
It is the mission of the Street Division to support and enhance a high
quality of life for the City's residents, businesses and visitors by
providing a well -planned, environmentally sensitive, cost effective
infrastructure through superb customer service. In addition, it will
provide residents with a quality urban forestry program that is cost
effective and delivers good stewardship for the natural resources of
the community.
of M4
The functions of the Street Division include street cleaning, street
maintenance, responding to all resident requests, and ensuring trc 4'ortr;s D`Jc�`�l,
roadways are cleared of snow and ice. All city -owned vehicles and
various pieces of equipment are repaired and maintained at the Public Works Facility with two full-
time mechanics. The division also maintains public sidewalks, curbs, storm sewers and the drainage
system.
In addition, as of FY17/18, the Street Division also provides residents with a quality urban forestry
program that is cost effective and delivers good stewardship for the natural resources of the
community. The arborist's crew uses professional management practices in tree planting,
maintenance and removal to improve the quality of the urban tree canopy.
In summary, Street Division employees undertake the following tasks:
• Crews remove snow, control ice, and conduct street cleaning in addition to making
miscellaneous repairs.
• Maintain and repair all City owned vehicles and various equipment through the City garage
with two full-time mechanics.
• Monitor maintenance of City streetlights and signals by a private contractor.
• Maintain and repair the City's drainage system to prevent flooding.
• Monitor creek levels and maintain to prevent flooding.
• Advises the department director on fleet and infrastructure needs and responds to service
requests.
• Tree planting; maintenance and removal, conduct tree inventories, survey trees for insect,
disease and any hazardous tree problems, administer the Arbor Day Program, maintain the
City's status in the Tree City USA and Growth Awards Program. Work with other City
departments, community groups and volunteers on tree related issues, and oversee the Tree
Preservation Ordinance for compliance.
• Oversee the mowing contract for city properties.
Crew Leader
AndyLechner
Maintenance „
Maintenance
Worker
Worker
Dave
Tim Lechner
EChristopher
Maintenance
Maintenance
Worker
Worker
Nate Banwart
Gary Mertz
Maintenance
Maintenance
Worker
Worker
Pedro Pao ■
Nick Goettsche
r
Street Division
Superintendent
Scott Schweda
Crew Leader Forestry Crew Fleet Maintenance
Leader
Dale Moll Division
Mike Harper
Maintenance
Maintenance Mechanic
Worker
Worker
Ron Barta
Paul Clements Mike Owsley
Maintenance
Maintenance
Worker
Worker
Sam Burrafato
Rick Leisten
Maintenance
Maintenance
Worker
Worker
Jason McMahon "
Jacob Reilly
Maintenance
Worker
Mike Turner
CLTY OF McrjLNRY
A411
Mechanic
Jason Lamz
Public Works Street Division - FY17/16 Accomplishments
• Crews resurfaced and repaired sections of streets throughout the City.
• Trimmed trees and removed 100 ash trees; completed the bi-annual brush program and
responded to storm damage requests from residents.
• Replaced sidewalks and curbs.
• Completed numerous drainage improvements.
• Implementation of the 2017 Crack Sealing program.
• Maintained city -owned vehicles and equipment.
• Right of way maintenance including parkway restoration, mowing, and creek cleaning.
• Oversaw the 2017 Road Program which included 5 streets.
• Managed snow removal, ice control, and conducted street cleaning in addition to making
miscellaneous repairs.
• Assisted with the preparation for Fiesta Days and 4th of July activities.
• Pavement maintenance process reclamite was completed on the roads that were paved in
• The 50/50 residential planting program "Plant Trees McHenry" was funded for the fourth
year. This year's program included funding for 25 trees; 4 trees were planted through the
program.
• Arbor Day was celebrated on April 28th, 2017. A total of 6 trees were donated by the
Gilbertsens, Mrs. Lane, Sandy Zawistowski, Fabrik Molded Plastics, Vicki Winkelman, and the
McHenry Garden Club.
• The City planted 302 trees in various parkways.
• Crew members trimmed 934 city trees in Legend Lakes, Boone Creek, McHenry Shores,
Pebble Creek, and the Oaks of Irish Prairie.
• 127 trees were removed in 2017 with 78% of these removals due to the Emerald Ash Borer.
146
Public Works Street Division - FY18119 Goals & Objectives
• Address all snow and ice events by clearing roadways to ensure safe travel on City streets.
• Continue drainage improvement work, particularly in the Lakeland Park and the City's
northwest quadrant.
• Maintain the City's fleet so that it will operate efficiently and its useful life is extended.
• Repair and maintain City streets by dedicating crew to road resurfacing and pothole repair.
• Mowing the City's right of ways and property in a timely fashion.
• Respond to all resident requests in a timely manner.
• Maintain the City's storm sewer system.
• Maintain and repair City sidewalks and curb.
• Inspect and maintain the City owned street light systems.
• Assist with the preparation for Fiesta Days and 4� of July activities.
• Using the 50/50 residential planting program plant 25 trees- if funding is approved.
• Plant five trees for our annual Arbor Day celebration.
• Plant ten trees in our park system.
• Plant 80 trees in the city parkways in Green Valley, Brittany Heights, Country Club Estates,
Oaks of McHenry, and Riverside Hollow.
• Assist Developers with tree planting in new subdivisions.
• Continue work on the seven year pruning rotation in the subdivisions of Glacier Ridge, Wood
Creek, Martins Woods, Brittany Park, and Lakeland Park West
• Continue the five year pruning cycle for City parks Knox, Miller Riverfront, McHenry Shores,
Creekside, Pebble Creek, Boulder Creek, Wheeler Park, Center St., and Overton.
• Identify hazardous trees for removal and remove other trees as required.
• Remove Emerald Ash Borer infested trees in a timely manner.
• Continue to monitor for Emerald Ash Borer, Gypsy Moth, and Japanese Beetle.
147
® Capital Improvement Projects to administer include the 2018 Road Resurfacing Program,
asphalt pavement maintenance (crack sealing and reclamite) equipment/vehicle
replacement, and the Sidewalk Replacement Program.
Public Works Street Division - FY18/19 Performance Measures
Performance
Performance
••
•
Item
..
Proposed Outcon-le(s)
Provide all necessary training
Was all training
Staff fully prepared for work Less
Internal Training
for all division employees
required for the year
injuries.
each year
completed?
work related
Street Sweeping
Sweep 121 center lane miles
Center Lane Miles
Clean streets
a year
Sidewalk Replacement
Replace 3,000 lineal feet of
Lineal feet
Safer sidewalks for residents
hazardous sidewalk per year
Crack seal, patch and apply
Were all necessary
Asphalt Maintenance
reclamite to prolong the life
Safer roads. Save money
of City roads
road repairs made?
Provide all necessary
Drainage Maintenance
ditching, storm sewer repairs
Repairs
Flood prevention
and creek maintenance to
prevent flooding
Tree Condition
IF —
Provide a survey
Half the City
Reduce failure and preserve City
Trees
Creek
One prescribed
Maintain our City natural
Manage Woodland Areas
Maintenance/Controlled
burn/all creeks
areas/preserve creeks
burns
maintained
Public Works Streets - Fund Summary (Fund 100, Department 33)
Number
Description
d.
Proposed
4010
!Salaries _ _ _
1168 698
1179 270
1107 777
1289 777
1333 743
1 ,308,833
_
4050
I Overtime
8,961
6,832
I. 81283
10,000
22,397
10,000
4060
(Overtime Snow Removal
58,293
53,717
61,416
70,000
72,039
70,000
4110
Salaries - PT Seasonal
230
22,044
20,000
19,590
20,000
4310
Health Insurance
368,923
347,465
337,836
370,061
385,641
333,028
4320
Dental Insurance
11926
21078
2,231
2,766
2,552
21692
4330
Life Insurance
759
700
693
760
686
779
4340
Vision Insurance
150
155
103
76
70
63
4410
IFICAMedicare
99,019
93,823
90,340
106,318
10S1907
107,776
4420
IMRF Retirement
173,052
164,642
169,014
175,058
1721694
173,604
4510
'Uniform Allowance
6,478
9,095
10,183
8,620
' 7,401
81620
TOTAL SALARIES/BENEFITS
11886,259
1,858,007
1,809,920
2,053,436
2,122,720
21035,395
5110
Contractual
97,335
99,172
92,368
80,000
107,274
93,000
5320
Telephone
3,795
3,7951
41634
5,900
8,280
5370
R_e air & Maintenance
152,218
108,202
1 127,766
125,000
119,385
125,000
5430
Training Reimbursement
785
2 886
3,168
4,000
31195
5,000
5440
Tuition Reimbursement
-
-
5510
1Utilities
5,451
11167
575
449
5520
Street Lighting
277,237
3161745
290,242
270,000
1 297,300
305,000
TOTAL CONTRACTUAL SERVICES
536,821
531,967
518,753
484,900
535,883
528,000
6110
Materials &Supplies
251,679-�
r--
239,627
224,130
240,000
249,190
240,000
6210
Office Supplies
�_ 1,704
1,850
855
1,500
257
11300
_
- _
6250
Gasoline & Oil
95,439
62,228
52,276
60,000
58,854
60,000
6270
Small Equipment_
51341
4,279
553
31500
71510
-
4,000
� 6290
(Safe E ui ment
Safety Equipment
j 1,411
945
� 1,500
11336
11500
6950
Forestry (Moved from Admin in FY17/18
187
_
56.000
_
156.233
66.000
TOTAL SUPPLIES
355)574 307,984 278,946 362,500 473,380 372,800
(37,033)
(74)
19
(13)
1,458
(1,454)
(18,041)
35,000
43,100
(200)
500
10,000
10,300
1.48%
0.00%
0.00%
0.00%
-10.01%
2.50%
-17.11%
1.37%
0.00%
16.25%
-100.00%
0.00%
25.00%
0.00%
0.00%
12.96%
8.89%
0.00%
-13.33%
0.00%
14.29%
0.00%
17.86%
2.84%
9920 Purchase of Service -Risk Management
9922 Purchase of Service - IT
TOTAL OTHER
8300 !Capital -Equipment
TOTAL CAPITAL OUTLAY
N
n
103,047 103,047 90,904 88,088 88,088 887088
9,166 9,539 11,811 12,158 12,158 14,357
112,213 112,586 102,715 100,246 100,246 102,445
19,294
(20,075)
0.00%
0.00%
Fiscal Year 2018/2019
Annual Budget
152
Parks and Recreation - Overview
McHU1 U
Parks & Recreation DepartmentYA�p
t
Mission
It is the mission of the Parks and Recreation Department to
provide planned recreation programs and maintain facilities
and parks to meet the recreational and park facility needs of
the public, recognizing that leisure activities, facilities, and
open spaces are important to individuals, families, and
community life.
The Parks and Recreation Department continues to expand
on the large strides made as a department in 2016/17. The core of this success has been the
Recreation Center. The facility has proven to be the heart of all recreation needs for our community
and served to be a community hub with over 76,000 visits to the center last year alone. The
overwhelming success has necessitated the expansion of the existing parking lot, which will occur in
the Spring of 2018. Finally, the facility has also cemented the campus feel of the Municipal Center,
Recreation Center and adjoining Knox Park connecting all with a mile long paved bike path that was
installed through an Illinois Transportation Enhancement Program Grant. Staff has been successful
at meeting the challenge of making the facility financially solvent while also meeting the expanding
recreation interests of the residents of McHenry.
In 2017/18 the Department completed its first Community Needs Assessment since 2004. The
statistically valid survey sent questionnaires to over 4,000 individuals in our community collecting
responses that representative of our community demographics. The survey provided invaluable
information on existing facilities and programming. More importantly it provided a road map of
where our residents would like to see the Department expand and improve. Expansion of the
recreation center was at the forefront of most respondents' top priorities, primarily an indoor pool
and expanding indoor aquatic offerings.
Finally, a significant new community amenity to be constructed in FY17/18 is the Miller Riverfront
Park Public Boat Ramp. In partnership with the Village of Johnsburg and Village of Lakemoor, the
City was able to acquire boat ramp rights in FY16/17 to be able to complete the construction of a
boat ramp that is more than 25 years in the making at Miller Riverfront Park. No doubt that this will
provide a unique service to residents of McHenry, Johnsburg and Lakemoor, but also visitors to the
community.
The Recreation Division of the Parks and Recreation Department consists of four full-time and one
part-time employees on the recreation side. Director of Parks and Recreation Bill Hobson works
alongside Athletics and Aquatics Supervisor Nicole Thompson, Recreation Supervisor Cindy Witt,
Facility Coordinator Christine Borgerding and Fitness Coordinator Nicole Schaller to coordinate the
various programs, events and services provided by the Department. Additionally, staff oversees the
management of the McHenry Recreation Center, Petersen Beach and Merkel Aquatics Center facilities
for the Department.
153
The Parks Division, consisting of Superintendent of Parks and Downtown Maintenance Pat Gorniak,
Assistant Superintendent Jeff Friedle and five (5) full-time Parks Maintenance Workers continue to
tackle the massive task of maintaining the City's more than 650 acres of park space, contained in
thirty-eight (38) municipally -owned park sites. In addition, the Parks Division is responsible for
maintaining the amenities of the City's three downtown business districts - Riverside Drive, Green
Street, and Main Street.
r..
f
154
Superintendent of Parks
Pat Gorniak
Assistant Superintendent
of Parks
Jeff Friedle
Maintenance Worker
John Dillon
Maintenance Worker
Chris Etten
Maintenance Worker
Chris Van Landyt
Maintenance Worker
Tracy Crowder
Maintenance Worker
Bob Zimmerman
Director of Parks and
Recreation
Bill Hobson
Recreation
Recreation Su ervisor , Athletics &Aquatics
p Supervisor McHenry Recreation
Cindy Witt son Center
Nicole Thomp
Facility
Coordinator
Christine
Borgerding
Fitness Lead �� Guest Services
� Lead
Recreation Program ■ Athletics &Aquatics
Staff Program Staff
Parks and Recreation - FY17/it; Accomplishments
Special Events
• The popular Dad &Daughter Date Night was held in February with over 300 people in
attendance. This event provided and wonderful evening for girls to spend one-on-one time
with their dads.
• The historical Big Wheels Race was held in July in conjunction with Fiesta Days. Boys and
girls ages 3-5 raced for victory at the Petersen Park Racetrack.
• Several new special events were offered this fall, including the Pumpkin Party, Mom &Son
Game Night, Turkey Burn, several Fitness Challenges, and Santa's Candy Cane Hunt. These
community events were well attended and hopefully become annual favorites.
• New special events for spring included:
- Biggest Winner Fitness Challenge
- Wrigley Field Tour
- Day of Play & Fitness fair
- Breakfast with the bunny
Programs
• Approximately 400 sessions of general recreation programs, trips and events were offered.
As of mid -February, there have been approximately 3000 registrations for general
recreation.
• McHenry Safety Town was built in the spring of 2017 with sponsorship, donations and
volunteer building support from McHenry CVS, Sherwin-Williams, Jessup Manufacturing,
The Home Depot, Behr, Illinois Traffic Control & Protection, Big R, Jimmy Johns, Riverside
Bakery and Dunkin' Donuts. Eight buildings were constructed and placed on the repurposed
concrete pad located at the Skate Park in Knox Park. The concrete pad was painted to look
like a "mini town" with streets, sidewalks and city blocks. A week-long camp and several
clinics were held for children ages 4-6. Curriculum was built and included instruction, fun
activities and hands-on learning on the safety topics of fire, bicycle, stranger -danger,
pedestrian and more.
• The Summer Day Camp was successful this summer with over 675 registrations, more than
twice as many as the previous summer. New Mini Explorers Camp clinics were added for
children ages 4-6 and received over 120 registrations. Kids and their counselors had a great
time playing in the parks, swimming and going on adventurous field trips.
• Spring, winter and fall dance classes are serving additional younger children in the
community. The 8-month long program is currently running with over 140 students. Adult
dance and Ballroom dance are also well attended.
• Junior Rangers classes, McHenry Park Quest and GeoTour Passport were introduced this
past summer. Park Quest and GeoTour are self -guided and provided great opportunities to
get people in local parks. Junior Rangers and McHenry Park Quest will continue in 2018.
156
• Children's activities were offered at all city band concerts when the City Band played.
• Adult field trips were reintroduced in winter 2018, scheduled cooperatively with Crystal
Lake, Huntley and Barrington Park Districts. Each agency is responsible for the creation of 1
to 2 trips per season which are then offered through all agencies. This helps to fill the trips
and avoid cancellations.
• Several no -school day camps and trips were held this year. Camp days are held during the
holiday and spring -break weeks. Trips are held on days of Parent/Teacher Conferences.
There were approximately 100 registrations for these events.
• Additional General Recreation programs were offered working with the following local
businesses:
- Integrity Financial -Financial Lunch &Learn Seminars (new in 2018)
- The Studio of McHenry - Art instruction
- Rock `n' Kids of Algonquin - Music instruction
- Just 4 You Treats of McHenry - Cookie decorating
- Riverside Animal Clinic of McHenry - Veterinarian Camp
• Approximately 45 rentals were schedule in 2017-2018. The community rooms have been
utilized for birthday parties, bridal & baby showers, seminars, meetings and celebration of
life luncheons.
Athletics
• The athletics sector has offered 290 program sessions during the 2017-2018 budget year. We
have helped 1,025 youth develop and discover the world of organized sports.
• We developed new partnerships with Hot Shots Sports, Boone Creek Golf Course, and Illinois
Girls' Lacrosse Association for the 2017 season.
• We offered a total of 24 new programs during the last year including an archery mini camp,
family color wars, floor hockey league, fishing, SNAG golf, golf camps, gymnastics clinics, nerf
combat, toddler sports leagues, tumble tots, baseball hitting and fielding clinics, lunch & play
classes, 3rd4th grade league, elite basketball training, small group athletics trainings, girls
basketball camp, club basketball program, ultimate Frisbee, volleyball skills clinics, softball
skills clinics, softball hitting clinic, beginning tumbling, girls multi -sport clinic, and girls
lacrosse.
• Our adult program flourished with 42 summer softball teams and 27 fall softball teams. We
also offered a new full court men's basketball league that filled for with 6 teams for the first
year.
• We saw growth in our open gym programming with an average of 40 adults/families at open
basketball, and an average of 1.5-20 adults at open volleyball/pickleball.
• We purchased a bubble soccer set to offer birthday parties and program during the year. We
will look at adding archery tag this summer to draw birthday parties and increase our archery
program offerings.
157
• For 2018, athletics will be taking over the MIB program in McHenry to run in house basketball
leagues for grades K-811,. We will also venture into summer sports camps along with
redeveloping existing programs to feeder into our athletic affiliate groups.
• The athletics sector is partnering with Northern United Futbol Club to offer our soccer
programs in partnership with their organization. We will make similar steps to do the same
with other youth affiliate groups in the area.
• The athletic supervisor met with all the city associated athletic affiliate groups to organize a
joint marketing magazine for athletics in McHenry. The organizations agreed to meet
throughout the year to develop local events and joint efforts for our programs in the area.
Aquatics
• The aquatics sector saw another summer of strong attendance at our Merkel Aquatic Center
and Petersen Park Beach. We sold 804 pool passes for the 2017 season a total of 408 more
than 2016. The Merkel Aquatic center had a total of 9,340 visitors during the summer, and
the Petersen Park Beach had a total of 1,226 visitors.
• We offered 81 swim lesson classes that taught 396 children how to be safe in and around the
water.
• We developed a new water skiing clinic with the Wonder Lake swim team which we will offer
again in 2018. We also offered more sailing classes through the Community Sailing School at
Pistakee Bay. The McHenry Marlins program expanded to offer a junior Swim Team program
to help swimmers prepare and learn the world of competitive swimming in a relaxed
environment. For 2018, we are adding a masters swim program, aqua boot camp, and open
water swim program.
• New special events were offered to the community and pool pass holders. We developed a
free boat rental day and member only night swim for pass holders. We also developed a start
to summer kickoff party and end of the season summer bashes.
• We installed an Aqua Zip'N at the pool to offer a new element for patrons to enjoy. We also
made improvements to the chemical room that helped our pool operate and maintain proper
chemical levels. We purchased new pool equipment, lounge chairs, and lane lines to help the
overall look and appeal of the facility.
• At the beach, we bought the Wibit hurdle element in addition to our 2016 Wibit wiggle bridge.
We added corcls and power paddlers to our boat arsenal. For 2018, we look to continue
expanding our inflatable course and boats with paddle boards, double kayaks, and pedal
boats.
• We had 46 pool party rentals. We will expand this offering by venturing into beach birthday
parties along with semi -private parties.
• The McHenry Marlins swim team had 93 swimmers during the summer season. The program
brought in a total of $32,502 in revenue. They finished 3rd in the Northern Illinois Summer
Swim Conference. Our winter swim team had a total of 133 swimmers and a revenue of
$54,631. The winter team has 21 swimmers with Illinois Swimming Inc. (ISI)/USA swimming
regional cuts times. We have 3 winter swimmers with ISI championship cut times. Six of our
swimmers qualified for the National Club Swimming Association meet in Orlando.
• A McHenry Marlins swimmer was honored at the fall 2017 Illinois Swimming Inc. annual
banquet where he received a state award due to his number of regional and state cut top
finishes for the 2016 season.
Special Events
• Over Fiesta Days, we had 215 people enjoy the McHenry River Run on Saturday morning.
Wednesday night, we had 45 youth compete in the open track meet.
• Our first annual Day of Play brought families out to the recreation center to work out, get a
glimpse of summer programs, enjoy a petting zoo, race on an inflatable obstacle course,
participate in a scavenger hunt, and get a glimpse of the McHenry farmer's market. We will
be making this an annual even to occur the 1st weekend of May.
• Our first annual Breakfast with the Bunny served 175 parents and children a pancake
breakfast on April 2. Families enjoyed taking pictures with the bunny, participated in an egg
hunt, made some crafts, and interacted with other families. The event for 2018 has been
limited to 100 guests due to space constraints, and we already have 75 people signed up.
jewel of McHenry provided generous supplies for the breakfast helping offset the cost of the
event.
159
Parks Improvements
Center Street Park
• Basketball court and hoop replaced
Lakeland Park Community Center
• New basketball post & hoop re -installed
Fox Ridge Park
• Additional seasonal ice rink installed
• New baseball backstop installed
Knox Park
• New siding and fresh paint on field 1 reviewing stand
• New concrete pad for shelter 1
• New scoreboard installed on field 2
• New park identification signage
• Knox lower barn rebuilt, repainted and new doors installed
• Safety town built
Petersen Park Farmhouse
• Main barn painted along with batten boards installed. New gable louvers installed and
painted.
• New modern bathroom built in main house
• Roof replaced on main house
Petersen Park
• New handicap/bottle filler drinking fountain installed.
• Field 2 infield reshaped and slit seeded with high wear hybrid seed
Veterans Memorial Park
• Gazebo railings removed, rebuilt and painted
• Gazebo posts repainted
• Audio equipment upgraded
Jaycee's Park
• New baseball backstop installed
Miller Riverfront Park
• New community boat launch built
Neumann Park
• Extensive landscaping done with plantings of arborvitae, perennials, and annuals
• Neumann stable was painted
160
• Archway trellis was rebuild and enhanced
Overton park
• Gazebo was rebuilt and repainted
Downtown districts
• New crosswalks signage installed on green street
• Parking regulation signage installed throughout the downtown & parking lots
• New parking lot identification signage designed in house and installed
• Riverwalk brick sidewalk and new trees installed in front of theatre
Riverwalk
• Numerous planting areas re -landscaped
• Boone Creek Fountain replaced
General maintenance notes
• 220 tons of ballfield mix spread
• 2SO lbs. of athletic turf seed
• 100 lbs. of hybrid high wear grass seed
• 128 hanging baskets watered and maintained
• Planting of all downtown pots and urns
• Set up, take down and cleaning of numerous city events
Marketing
• The parks department has pushed to improve our marketing efforts and customer response
rates through social media, digital, and print marketing efforts.
• Print marketing efforts have included flyers and brochures going out to local school districts
in McHenry, Johnsburg, and Wonder Lake. We have placed our information strategically
around the building in slat boards, child care, at the front desk, and entry/exit doors. Our
annual brochures continue to be mailed out to past participants and McHenry households
along with being available at the local libraries in the area. The department invested in a Shaw
media plan that includes two medium print ads in the Northwest Herald twice a month which
we use to showcase facility promotions, special events, and upcoming program registrations.
We have developed a monthly calendar that showcases when programs start to help
participants and members see what is happening each month.
• Digital marketing efforts have included updates to our department webpage including on-
line program calendars, program pictures, class descriptions, league schedules, program
information, exercise class schedules, on-line enrollment, and digital brochures. We have
utilized Facebook and Instagram to run paid program posts, share important schedule
changes, capture programs live, and push enrollment for programs. Our Shaw
Media agreement includes digital ads on their website twice a month. Our ads are currently
getting a digital click rate of .10% on their website which is above the industry average of
.02%. We have utilized Mailchimp to distribute monthly newsletters to our members and
161
program participants of upcoming events and new program highlights. The department has
been utilizing Survey Monkey for the last two years to evaluate programs and make necessary
changes to increase program participation along with adjusting offerings.
The department completed an in -kind agreement with Kelsey Adams Photography to capture
our events year round for promotion in our brochures, marketing efforts, and social media
campaigns.
fiC.'f�•i
Parks and Recreation — I,Y18/19 Goals & Objectives
• Continue to maintain the City's quality parks and parks amenities and to offer quality
recreation programming for our residents
• Bring Miller Riverfront Boat Launch online for use by residents and visitors to McHenry
• Coordinate with user groups, service groups and businesses to manage McHenry's fantastic
public events
• Provide information related to the expansion of the McHenry Recreation Center and
development of a family aquatic center in preparation for a potential public referendum in
November of 2018
• Enhance Department's sponsorship program.
• Complete Community Needs Assessment project, analyze findings and look to plan and
implement recommendations.
• Continue to develop relationships with school districts, chamber, and various social clubs in
community.
163
Parks and Recreation - FY18/19 Performance measures
IFY • Proposed,
Item
Goal
Description
Complete Community Needs
What are the leisure needs of
the residents of McHenry and
Assessment. Analyze findings
how will the Parks & Recreation
October 2018
Community Needs Assessment
and implement
Department make changes to
recommendations.
meet those needs?
Are the Department's
Measure the Department's
marketing efforts reaching the
Marketing
marketing success and
intended audience and which
September 2018
effectiveness.
methods are most effective?
Explore opportunities to
What technology are we
improve customer service and
utilizing and is it the most
Technology
department operations through
effective tool for the specific
August 2018
the introduction of
task? i.e. Programming
technological advancements.
Software
Invest in training, retention
methods, staff recognition and
How do we improve the
Staff Development/Retention
cross training in order to
performance of department
December 2018
develop staff workforce and
staff?
reduce turnover/loss.
What is the value of a
membership? Are we
Membership Retention
Our goal is a membership
continuing to offer the most
January 2019
retention rate of 60%
current group exercise classes?
Are we maintain a clean facility?
164
N
a1
n
Parks and Recreation - Fund Summary (Fund 100, Department 4147)
4010
4030
4050
4110
4150
4310
4320
4330
4340
4410
4420
4510
5110
5310
5320
5330
5370
5410
5420
5430
5440
5450
5510
Salaries 683,036 820,009 693,450 722,736 712,942 696,836 (25,900) -3.58%
Salaries - Part Time 320205 850230 85,230 80,210 (51020) -5.89%
Overtime 15,252 15,010 14,733 17,500 20,615 17,500 0.00%
Salaries - Seasonal 201,237 216,570 275,908 282,600 318,066 307j500 24,900 8.81%
Overtime - Seasonal 3,899 4,676 0.00%
Health Insurance 179,286 211,179 190,841 177,148 197,824 172,442 (4,706) -2.66%
DentalInsurance 41596 5,205 4,060 4,451 3,869 3,062 (11389)-31.21%
Life Insurance 475 479 479 440 496 369 (71)-16.14%
Vision Insurance 362 399 302 318 294 192 (126)-39.62%
FICA Medicare 69,348 78,435 73,767 84,767 86,721 64,307 (460) -0.54%
IMRFRetirement 96,195 108,860 92,264 94,602 94,363 89,292 (5,310) -5.61%
Uniforms 2,543 1,998 2,368 2,550 10284 2,550 - 0.00%
TOTAL SALARIES/BENEFITS 1,284,535 1,4581144 11352,071 1,472,342 1,526,402 1,454,260 (18j082) -1.23%
Contractual
Postage and Meter
Telephone
Printing and Publishina
Repair and Maintenance
Dues
Travel Expense
Trainina
Tuition Reimbursements
Publications
Utilities
TOTAL CONTRACTUAL SERVICES
237,656
6,078
14,435
6,578
14,243
1261351
2,570
253,672
6,972
16,651
8,588
15,600
125,848
283
2,886
214,207
10,296
18,943
9,887
14,809
127,419
567
4,980
231,350
12,900
15,450
13,008
15,000
127,208
700
8,150
234,933
5,042
11,056
16,202
21,665
127,045
69
7,550
240,350
6,000
17,300
15,000
139,863
1,100
9,650
235
256
256
500
446
500
24,822
34,041
45,489
21,000
21,095
21,500
432,968
464,797
446,853
445,266
445,103
451,263
9,000
(6,900)
[15,450)
4,292
12,655
400
1,500
500
5,997
3.89%
-53.49%
-100.00%
33.00%
0.00%
9.95%
57.14%
18.40%
0.00%
0.00%
2.38%
1.35%
0
6110 I Materials and Supplies
6210 Office Supplies
6250 Gasoline and Oil
6270 Small Equipment
TOTAL SUPPLIES
6920 Special Events
129,651 11
149,910
162,443 11
146,000
11892
3,884
8,138
51000
22,342
14,804
15,705
18,000
3,421
13,744
1,990
22,700
6950 � Forestry (Moved to Public Works)
9920 (Purchase of Services -Risk Management
9922 Purchase of Services - Information Tech
TOTAL OTHER
8300 � Capital Expense -Equipment
8400 Capital Expense -Vehicles
8700 Capital Expense - Park Improvements
8800 Public Improvements
TOTAL CAPITAL OUTLAY
157,306 182,342 188,276
25,516 24,697 23,494
25,685 28,490
�- 81,774 81,774 67,392
40,407 42,987 53,015
173,382 177,948 143,901
- I
8,550 - 15,296
60,652 17,388
8,825
69,202 17,388 24,121
191,700
26,200
66,973
55,574
148,747
IF
165,171
170,000
24,000
16.44%
5,821
5,000
0.00%
15,898
17,000
(11000)
-5.56%
8,995
12,000
(10,700)
-47.14%
195,885
204,000
12,300
6.42%
29,325 26,200
66,973 66,973
151,872 147,796
(951)
(951)
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
R
Aw
vow%;
id iic I�
•
I,
L1tT�1
•
ftw
Tourism Fund - Overview
The purpose of the Tourism Fund is to finance tourism -related
promotions of the City of McHenry. Revenues of the Tourism Fund
are derived from a 5% tax on motel and hotel room receipts.
Expenditures currently include annual contributions to the Visit
McHenry County organization (formerly McHenry County
Convention and Visitors Bureau), partnering with the McHenry
Jaycees to fund a portion of the annual Independence Day fireworks
in Petersen Park, and on the municipal portion of various festivals
and special events held within the municipality such as Fiesta Days
and Blue, Brews and BBQ.
In FY17/18, the Tourism Fund was also utilized to fund a new event
- McHenry Shamrocks the Fox - held over St. Patrick's Day weekend.
approved by Council during the fiscal year to provide for this funding.
Revenues
FY14/15 Actual - FY18/19 Proposed
A
budget amendment was
$200,000
3,893 $153,959 $162,76$176,000
$155,050
$150,000
$100,000
$50,000
FActual5 FY15/16 FY16/17 FY17/18
Actual Actual Budget FY17/18 FY18/19
Estimated Proposed
Expenditures
FY14/15 Actual - FY18/19 Proposed
$100,000
$80,000
$601000
$401000
$20,000
FActual5 FY15/16 FY16/17 FY17/18
Actual Actual FY17/18 FY18/19
Budget Estimated
Proposed
V
O
3142 ', Taxes -Hotel/Motel
3210 Interest
3220 i CD Interest
TOTAL REVENUES
153,781 153,817 162,505 155,000 186,921
34 93 261 50 17500
78 49
506,190
175,000 20,000 12.90%
1,000 950 1900.00%
- 0.00%
153,893 153,959 162,766 155,050 188,421 176,000 20,950 13.51%
5110 '..Contractual 12,uuu 1L,uuu 13,LiSl LS,uuu 1L,L/5 15,uuu
TOTAL CONTRACTUAL SERVICES 12,000 12,000 13,281 15,000 12,275 15,000
6940 Administrative Expenses
9901 Transfer to General Fund
TOTALOTHER
TOTAL EXPENDITURES
NETINCREASE/(DECREASE)
r� '-liu��Balance
75,000 75,000 75,000 75,000 75,000 99,000
75,000 75,000 75,000 75,000 75,000 99,000
87,000 87,000 88,281 90,000 87,275 114,000
66,893 66,959 74,485 65,050 101,146 62,000
263,600 330,559 405,044 470,094 506,190 568,190
24,000
24,000
0.00%
0.00%
0.00%
32.00%
32.00%
Fiscal Year 2018/2019
Annual Budget
_
171
Pageant Fund - Overview
The purpose of the Pageant Fund is to account for
revenues and expenditures used to conduct the annual
Miss McHenry Pageant. The pageant, a community
tradition for 60 years, is conducted annually. Female
contestants between the ages of 16 and 20, living with
the boundaries of the McHenry District 156 school
district and having a McHenry address, are eligible to
participate. Revenues are derived from entrance fees of
$200 per participate, normally paid by a sponsor, and
other donations. Expenditures are directly related to the
holding of the pageant.
Revenues
FY14/15 Actual - FY18/19 Proposed
$4,500 203
$4,000
$3,500 _
$3,000
$2,500 _
$2,000
$1,500
$1000
>500
a�
00
p
Expenditures
FY14/15 Actual - FY18/19 Proposed
$3,500 $3,333 3 311
$3,000 _-
$2,500
$2,000 _
$1,500 1,0 1 6—
$1,000
$500
$- —
�PG��
a\,Y y�P
\ y(0\ti ^\N 40 Q�oe
�yy^\tip
F
172
N
v
w
Pageant = Fund Summary (Fund 205, Department 00)
Beginning Fund Balance
3815 Donations
3890 Miscellaneous Income
TOTAL REVENUES
5110 Contractual
5310 - Postage & Meter
TOTAL CONTRACTUAL SERVICES
6940 Administrative Expenses
TOTAL OTHER
TOTAL EXPENDITURES
NET INCREASE/(DECREASE)
Ending Fund Balance
(2,636) (1,
(1,811) (1,430)
1,54 1300 -
1,547 11300 -
2 116 -
2 116 - - 508 -
3,331 31195 11073 11100 658 11200 100
3331 31195 11073 1,100 658 1)200 100
3,333 3,311 1,073 1,100 1,166 1,2(
870 638 187 200 381 10
(21636) (1,998) (1)811) (1,611) (1,430) t1,33
4,203
949 1.260
3,949
1,260
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
9.09°/a
9.09°/a
Fiscal Year 2 018/2 019
Annual Budget
�f►i�
Band Fund - Overview
The purpose of the Band Fund is to finance and
account for expenditures incurred for the
provision of summer concerts by the municipal
and to promote culture and recreation in
McHenry. Revenues are derived through a
transfer from the General Fund and expenditures
are related to stipends paid to the members of the
and.
Revenues
FY14/15 Actual - FY18/19 Proposed
$16,000 $1s,00�1s,009 1s 012
$14,000 re08 $12,059
$12,000
$10,000
$8,000
$6,000
$4000
2,000 _
ySPG�J �P`��a
Expenditures
FY14/15 Actual - FY18/19 Proposed
$14,500 $14,500
$14,500
$14,000
$13,500 $12,913
$13,000 -I2 12422
$121500 J
$12,000
$11,500
$11,000 -- — 7
Jai a� ♦ ��--'�f
175
Band -Fund
21UN D
G
Be innin Fund Balance
Aw
,,6,51 19,44AM 19,441 17,761REVENUES
3120 Interest Income 2 _ 4 12 50 _ _ 0,00%
3220 CD Interest 7 5 - 0,00%
3975 Transfer From General Fund 15,000 15,000 15,000 12,000 12,000 12,000 0.00%
TOTAL REVENUES 15,009 15,009 15,012 12,000 12,050 12,000 0,00%
TOTAL CONTRACTUAL SERVICES
6110_ I Materials &Supplies
6940 iAdministrative Expenses
TOTAL OTHER
TOTAL EXPENDITURES
i
I
NET INCREASE/(DECREASE)
Ending Fund Balance
12,539 12,913 12,422 15,000 13,730 15,000
2,470 2,096 2,590 (31000) (11680) (3)000:
14,755 16,851 19,441 16,441 17,761 14,761
0.00%
0.00%
Fiscal Year 2 018/2 019
Annual Budget
177
Civil Defense Fund - Overview
The Civil Defense Fund accounts is for the training of personnel and
the purchase and maintenance of equipment needed to protect and
defend the municipality from natural disasters or man-made
environmental disasters through early warning and public
notification systems. Revenues are derived from a General Fund
transfer and expenditures are as -needed.
Revenues
FY14/15 Actual - FY18/19 Proposed
$s,000 Ss,00a $s,000 $s,000
$s,000
$7,000
$6,000
$5,000
$4,000
$3,000
$2,000
$1,000
�p p
ti
F
Expenditures
FY14/15 Actual - FY18/19 Proposed
$10,000 $8 226
$8,000
$6,000
$4,000 00
$2,000
hP QG P�� Jai area yea
y�\you
F�
178
Beginning Fund Balance
3975 Transfer From General Fund
TOTAL REVENUES
5375 ..Repair &Maintenance
TOTAL EXPENDITURES
NET INCREASE/(DECREASE)
Ending Fund Balance
(2,436)
(71804)
(6,093), (61319)
(6,319)
(3,619)
5,000 51000 81000 81000 81000 81000
51000 51000 81000 81000 8,000 8,000
I
10,368 3,289 8,226 51300 31600 5,300
10,368 31289 8,226 51300 3,600 51300
(51368) 1,711 (226) 2,700 4,400 2,700
(71804) (61093) (61319) (31619) (11919) (919)
0.00%
0.00%
Fiscal Year 2018/2019
Annual Budget
l
I,
u
11
L_�
` �_j
Alarm Board Fund - Overview
The Alarm Board Fund is to pay for the maintenance of radios
and "head -end" equipment in the municipal 911 dispatch
center (NERCOM). This equipment comprises the city's direct
connect radio fire alarm monitoring network. City businesses
which are required, by building code, to have a fire alarm
monitoring system are required to be monitored via direct
connection to NERCOM. This direct connection helps to ensure
a more efficient emergency response.
Revenues
FY14/15 Actual — FY18/19 Proposed
$z5o,000
$200,000 $189,151 $201,176 $200,500
5,893 175,49
$150, 000
$100,000
$50,000
FY14 15 FY15/16 FY16/17 FY17/18
ActActual Actual FY17/18
Budget FY18/19
Estimated
Proposed
Expenditures
FY14/15 Actual — FY18/19 Proposed
$100,000 ,
$80,000 $80,984
$60,000
$40,000
$20,000
FActual FActual FY16/17 FY17/18
Actual Actual FY17/18
Budget FY18/19
Estimated Proposed
181
Alarm Board - Fund Summary (Fund 225, Department 00)
Beginning Fund Balance
3210 Interest Income
3240 IL Fund Interest
3895 Alarm Board Revenue
TOTAL REVENUES
5110 Contractual
TOTAL EXPENDITURES
N
NET INCREASE/(DECREASE)
Ending Fund Balance
76,954
186,292
290,519
389,081
389,081
509,273
13
58
302
250
998
500 250
0,00%
2
31
330
0,00%
165,878
175,407
188,849
190,000
199,848
200,000 10,000
5.26%
165,893
175,496
189,151
190,250
201,176
200,500 10,250
6.70%
561555
71,269
90,589
92,000
80,984
92,000
0,00%
56,555
71,269
90,589
92,000
80,984
92,000
0,00%
109,338
104,227
98,562
98,250
120,192
108,500
186,292 290,519 389,081 487,331 509,273 617,773
Fiscal Year 2018/2019
Annual Budget
`�\ f ■� t1� � l I 1
Audit Fund - Overview
The purpose of the Audit Fund is to account for expenses
incurred to complete the annual audit of the city's financial
statements. The State of Illinois requires that the City of
McHenry conducts an independent audit on an annual basis.
Statutes provide authority for an entity to levy a portion of the
property tax to pay for the audit. Since the authority to levy a
property tax for the audit is separate from the authority to levy
the corporate rate, the levy amount for audit is deposited into a
separate fund and kept segregated from the General Fund
receipts.
Revenues
FY14/15 Actual - FY18/19 Proposed
$381800 $38,787
$38,600
$38,400
$38,200 $371973
$38,000 760
$37,800
$37,600
$37,400
$37,200
y�IZZ �P`�o P`��a Ja�e� area yea
�yti �ayA�ti�
Fy
Expenditures
FY14/15 Actual - FY18/19 Proposed
$44,000 �g--
$42,000 $41,715
$40,000
$38,000 710$36,380
$36,000
$34,000
$321000
yP
00 NN Q�04 �
184
Beginning Fund Balance
3010 Property Tax Collections
3210 Interest Income
3220 CD Interest
3970 Charges for Services
TOTAL REVENUES
16,550
26 422
- _ 1.8,60Q
_- 20,193
r 17,631 17,63_1
26,410
26,387
26,426
26 352
--- -------- -- 3
8
11
-
50
21I
- - 11,333
1
11,554 11,785 12,078
12,078
37,760 37,973 38,183 38,504 38480
5110 'Contractual
TOTAL EXPENDITURES
NET INCREASE/(DECREASE)
w
cn
Ending Fund Balance
12,361
38,787
35,710
36,380
40,745
41,715
42,535
42,758
21050
1,593
(21562)
(3,211)
(4,055)
(31971)
18,600
20,193
17,631
14,420
13,576
9,605
0.00%
- 0.00%
0.00%
283 2.34%
283 0.73%
1,043 2.50%
1,043 2.50%
Fiscal Year 2018/2019
Annual Budget
186
Annexation Fund - Overview
The Annexation Fund is a non -operating fund that is used
to account for receipts from generally non -recurring
revenue sources resulting from negotiated annexation
agreements. Revenues include a fee assessed on gravel
mining on a per ton basis, revenues from property being
annexed into the City on an acreage and lot basis, and an
additional per unit fee that is distributed to other taxing
bodies. Expenses in the fund are related to improvements
to infrastructure or municipal facilities.
e c—
Revenues
FY14/15 Actual - FY18/19 Proposed
$250,000 $233,826
$200,000
$155,200
$150,000 $111,956
$100,000 4
$50,000
yPG�J G�Ja `�Ja� �a� ea a
Q`OQ
F
Expenditures
FY14/15 Actual - FY18/19 Proposed
S1ss,su
$160,000
$140,000
$120,000
$100,000
$80,000
$60,000 000 bb sSQ6L$_
$40,000
$20,000
a� �
c�Ja G�Ja\
187
Annexation - Fund Summary fFu
Beginning Fund Balance
3210 'Interest Income
3220 CD Interest
3715 'Annexation Income
3720 Operating Fees - Annexation
3721 Operating Fees - District #15
3722 Operating Fees - District #156
_3723 j Operating Fees _Library
3724 Operating Fees - Fire
3745 Gravel Mining/Annexation Agreement
TOTALREVENUES
6970 I Distributions -Schools
6980 1 Distributions -Library
6990 Distributions - Fire
9904 Transfer to Debt Service
TOTAL EXPENDITURES
_ NET INCREASE/(DECREASE)
Ending Fund Balance
260
,
190,464
219,282
296,238
371,243
371,243
408,856
I
i
41
94
2111
200
11080
200
96
60
60
2,094
_ 38,668
37,620
70A0
87475_
10,000
-
-
10,000
10,000
4,998
-
68,152
450
9F55
31528
_
50,357
294
-
3,812300
1,500
75,000
63,058
65,000
61,587 72,834 72,114
72,638
Ili
111)956
233,826
155,200
89,674
85,200
8,526
j 294 'II
118,509
51312
91500
500
16,441
535
85
9,500
500
35,000
35,000
35,000
35,000
35,000
35,000
43,820
35,000
158,821
45,000
52,061
45,000
28,818
76,956
75,005
110,200
37,613
40,200
2191282 296,238 371,243 481,443 408,856 44%056
(60,000)
(10,000)
(70,000)
0.00%
0.00%
-85.71%
0.00%
0.00%
0.00%
0.00%
0.00%
-13.33%
-45.10°/a
0.00%
0.00%
0.00%
0.00%
0.00%
Fiscal Year 2018/2019
Annual Budget
Motor Fuel Tax Fund - Overview
The purpose of the Motor Fuel Tax (MFT) Fund is to provide
dedicated revenues from taxes on gasoline and diesel sales
primarily to road improvements and maintenance. Motor fuel
taxes are generated by a flat rate of cents per gallon, plus a sales
tax transfer. This sales tax transfer was eliminated by the State of
Illinois in 2000 and replace by certain vehicle registration fees. In
2010 the municipality issued a $3.5 million bond for local roadway
improvements and the majority of MFT expenditures are to service
this debt. The remaining amount is utilized for the purchase of
road salt, as a match to leverage other Federal and State road funds
(e.g., Surface Transportation Program, Highway Safety
Improvement Program) and road maintenance.
Revenues
FY14/15 Actual - FY18/19 Proposed
$954,038
1?1,000,000 852,488
$7551301 $718,336t�
$600,000
$400,000
$200,000
FAy�\y
Qy
Expenditures
FY14/15 Actual - FY18/19 Proposed
$1,III ,370
$1,200,000
$L000,000
$800,000 $786,889 764,930
$600,000 52 941
$400,000
$200,000
$-
a �
\h ti`�\y�P y�P ti�'��a `��a� tOR
ROAD
WORK
AHEAD
190
Motor Fuel Tax - Fund
3150 MFT Allotments from State
3180 Grants
3210 InterestIncome
3240 IL Fund Interest
3886 Reimbursements - State
3975 Transfer from General Fund
3999 Transfer from Other Funds
TOTAL REVENUES
270, D
1 1171 777
1 1 QS 1 27 Q7F 7SS 1 1 7R F1 S 1 1 7R �1 S 1 1 77 42S
954,038 852,488 755,301 695,644 718,336 700,044
0.00%
(600)-100,00%
5,000 0.00%
0.00%
0.00%
0.00%
4,400 0.63%
EXPENDITURES
6110 Materials & Supplies 264,681 �97,672 23,010 150,000 60,692 150,000 0.00%
~ 8600 Streets 161,833 623,436 131,290 235,800 212,235 217,000 (18,800) -7.97%
9904 Transfer to Debt Service 403,659 400,262 3987641 401,089 401,089 397,930 (3)159) -0.79%
TOTAL EXPENDITURES 830,173 1/1217370 5521941 786,889 674,016 764,930 (21)959) -2.79%
NET INCREASE/(DECREASE) 123,865 (268,882) 202,360 (91,245) 44,320 (64,886)
Ending Fund Balance 1,1951137 926,255 11128,615 1,037,370 11172,935 10108,049
�v e
Fiscal Year 2018/2019
Annual Budget
192
Developer Donation Fund - Overview
The Developer Donation Fund is to account for donations collected
from developers on behalf of the primary and secondary school
districts, fire protection district, library district and the municipal
park system. Developer Donations are collected to ensure the
provision of public facilities to serve new development by
requiring each new developer to pay a calculated share of the costs
of such improvements as a condition of approval. By municipal
ordinance, anyone applying for a building permit for a residential
unit are required to pay fees for each unit constructed.
Revenues
FY14/15 Actual - FY18/19 Proposed
$600,000
$500,000 - 5446,261
$400,000
$400,000 r 0,871 $3231000
$300,000
$200,000
$100,000
—
a� �
'y�P`�J c'�Ja P��aa\ J poems aea 5 a
P a e
,yh�ti� A\y�� Q`oQo
Expenditures
FY14/15 Actual - FY18/19 Proposed
$700,000 �63s�so-
$ 600,000
$500,000 ~, 411,
$400,000 83 306
$300,000
$200,000
$100,000
Japo awe ya
�a
�\y�� � o
F
193
Developer Donation - Fund Summary (Fund 280, Departments 00, 41
N
.P
Beginning Fund Balance 763,840 720,393 883,036 11141,064 11141,064 1,1431475
REVENUES
3775 Developer Donations - Schools
P 79 214 75,417 87,440 65,000 1 87,611 80,000 15,000
I
3780 - Devleoper Donations - Parks _ 154,454 194,414 ''_ 328,632 175,000 286,484 225,000 50)000
3785 Developer Donations - Library 16,027 21,119 3%211 20,000 28,587 251000 5,000
3790 Developer Donations - Fire District 16,027 28,059 19,432 20,000 25,000 5,000
3210 Interest Income 124 246 460 _ 1,000 21800 3,000 21000
3220 CD Interest 303 189 _ 190 -
3240 IL Fund Interest 14 _158 776 _ 11
584
36,708
.-
3845 Rental Income _ 43,326 42,365 42,000 3919542,000
_- -
3882 Reimbursements - Miscellaneous 8 000 M828
TOTAL REVENUES 310,871 362,928 541,334 323,000 446,261 400,000 77,000
23.08%
28.57%
25.00%
25.00%
200.00%
0.0
0
0.00%
0.00%
0.00%
23.84%
i, 6940 Administrative Expenses � 10,974 11,432 11,338 14,200 ' 11,383 14,200 - 0.00%
6970 IDistributions Schools 79,214 75,417 ! 87,440 65,000 87,611 80,000 15,000 23.08%
6980 jDistributions Library 16,027 21,119 39,211 20,000 28,587 25,000 5,000 25.00%
6990 Distributions - Fire 16,027 28,059 19,432 2Q000 25,0_00 5,000 25.00%
8100 Land Acquisition 22,082 150)000 275,554 _ _ (150,000) 100.00%
8806 Park Playground Improvements 232,076 64,258 103,803 142,500 40,715 495,000 352,500 247,37%
TOTAL EXPENDITURES 354,318 200,285 283,306 411,700 443,850 639,200 227,500 55.26%
i
NET INCREASE/(DECREASE) (43,447) 162,643 258,028 (88,700) 2,411 (239)200)
Ending Fund Balance 720,393 883,036 1,141,064 1,052,364 11143,475 904,275
Fiscal Year 2018/2019
Annual Budget
195
Tax Increment Finance Fund - Overview
The Tax Increment Finance (TIF) Fund accounts for
revenues and expenditures related to the city's Downtown
Fax Increment Finance District, established in 2002. TIF
revenues are derived from the collection of property taxes
each year at an increment based on the increase in the
assessed valuation of properties within the area since
creation of the district. Expenditures are related to the
repayment of private development "extraordinary costs" per
approved development agreements and for public
improvements within the district which increase the value of
all properties within the area. Currently, due to stagnant
property values within the district, TIF revenues have remained relatively flat.
Revenues
FY14/15 Actual - FY18/19 Proposed
$/oo,000'
$600,000
$500,000 40 =1
$400,000
$300,000
$200,000
$100,000
a �
ti(O\\ti��Ja
oQ
4 Qy �Jti ��y1\tip y�\tip,
Expenditures
FY14/15 Actual - FY18/19 Proposed
$�oo,000
$600,000
$500,000
$400,000 j)2a2V35
$300,000 278197
$200,000
$100,000
o a �
\hP��
ti
p Y�` ti�Q`��
196
Fund Balance
3010 �,ProperlyTaxCollections
3890 Miscellaneous Income
TOTAL REVENUES
5110 Contractual Services
6940 Administrative Expenses
8900 Public Improvements
9901 Transfer to General Fund
9904 ITransfer to Debt Service
t- TOTAL EXPENDITURES
v
NET INCREASE/(DECREASE)
Ending Fund Balance
ent 001
(462,194) (738,453) (383,659)_� (338,694) (338,694) (241,370)
348,373314,911 322,162 _', 1 _ _1 325,000 380359 400,000
11000 329,220 11000 17000 11000 11000
349,373 644)131 323,162 326,000 381,359 401,000
L
240,950
6251632
(2761259)
(738,453)
5,329
56,771
1 J49
2,500
214,588
289,337
354,794
(383,659)
54
,262
2,500
221,435
278,197
44,965
(338,694)
20,000
2,500
217,735
302,235
23,765
(314,929)
284
,035
97,324
(241,370)
20.000
219,035
303,535
97,465
(143,905)
75
,000
75,000
23.08%
0.00%
23.01%
0.00%
0.00%
0.00%
0.00%
0.60%
0.43%
H E A R T O F T H E F O X R I V E R
Fiscal Year 2018/2019
Annual Budget
Fiscal Year 2018/2019
Annual Budget
E'uxnd
199
Debt Service Fund - Overview
The Debt Service Fund accounts for the bonded indebtedness
incurred by the City 's General Fund, including bond and interest
payments.
Revenues
FY14/15 Actual - FY18/19 Proposed
$5,962,338
$61000,000 — —
$5,000,000
$4,000,000
$3,000,000
$21000,000 2 $1,662,393
1,
$1,000,000
FActual5 FY15/16 FY16/17 FY17/18
Actual Actual FY17/18 FY18/19
Budget Estimated
Proposed
Expenditures
FY14/15 Actual - FY18/19 Proposed
$5,non ,305
$6,000,000
$5,000,000
$4,000,000
$3,000,000
$21000,000 $1,664,922
2—
$1,000,000
FActual5 FY15/16 FY16/17 FY17/18
Actual Actual FY17/18 FY18/19
Budget Estimated
Proposed
r��
Debt Service = Fund Summary (Fund 300, D
lent 0
Beginning Fund Balance
REVENUES
3210 Interest Income
390,930 344,859
31 3
3986 Transfer from MFT Fund
N TOTAL REVENUES
0
N
7100 Bond Principal
7200 Bond Interest
329,892 , 346,976 346,976
344,447
0
42 150 I 657 � 150
8 49,338 -
-I -
8 31_ 26,069 26 083 20,175
8 221,435 217 735 217,735 219,035
0 35,000 35,000 35,000 35,000
- 132,356 135,756 _ 135,756 134,056
0 - 726,318 735,361 735,361 739,993.
6 108,930 _; 110,712 110,712 110,729_
403,659
400,262
398,641
401,089 '
401,089
397,930
11520)797
5,9651338
11654,109
1,661,872
11662393
11657,068
� 7300 Fees -Paying Agent
7500 Bond Refunding
TOTAL EXPENDITURES
NET INCREASE/(DECREASE)
Ending Fund Balance
1,566,868
5,980,305
1,637,025
1,666,722
1,664,922
(46,071)
(14,967)
17,084
(41850)
(21529)
344,859
329,892
346,976
342,126
344,447
1,661,919
(4,851)
339,596
0.00%
0.00%
(51894)
-22.61%
0.00%
11300
0.60%
0.00%
(11700)
-1.25%
4,632
0.63%
17
0.02%
(31159)
-0.79%
(41804)
-0.29%
-
25,000 1.74%
(29,803)-13.15%
0.00%
0.00%
(4,803) -0.29%
Fiscal Year 2018/2019
Annual Budget
202
Recreation Center Fund - Overview
In March of 1999 the City Council passed a
resolution stating that 50% of developer
donation fees for parks were to be set aside for
the construction of a recreation center.
Consequently, the Recreation Center Fund was
created to account for these donations. In
addition, any future funding sources identified
for the construction of the facility would be
deposited in this fund and, further, the
expenditure of funds for the construction of a
recreation facility would be taken from this
fund.
In 2013 and 2014 City Council undertook a process to evaluate the feasibility of various options for
recreation facilities, including the development of a family aquatics facility and/or a recreation
center. Ultimately, it was determined that a recreation center should be the primary focus,
construction began in 2015 and the McHenry Recreation Center was opened in February of 2016.
Construction was financed through a combination of cash payments from the Recreation Center Fund
and the issuance of debt. This was done to ensure that funding remained in the Recreation Center
Fund to cover any start-up operating shortfalls, to serve as capital improvement funding for facility
needs, or seed money for future expansions of recreation facilities.
To date, the McHenry Recreation Center has exceeded expectations. With more than 2,500 members
as of March 2018, revenues are sufficient to not only cover all operating costs but to also fund the
$130,000 debt service. Importantly, no public tax dollars were used to construct the facility and no
tax dollars are required to operate the facility. The fund now accounts for the McHenry Recreation
Center operating budget and fund balance.
203
Recreation Center Fund - FY17/18 Accomplishments
Recreation Center
Recreation Center has been a major success in 2017. Through the end of February 2018 we
had 2,500 active fitness members. 77% of those are residents. These "active members" are
paying members who are in an annual contract, in good standing, and do not include
employees, punch pass holders or other short term memberships.
• From March through end of December, the Rec Center received a total of 73,716 visits from
fitness members.
• Group exercise classes, which are included in membership, have received 23,515 visits. This
reflects about 31% of our members visit history.
• The arrival of the Recreation Center and the expansion of fitness programming has lead to an
increase in health of those who choose to have a fitness membership. Members often
comment on how the exercise is contributing to weight loss, decrease in medication and an
improvement in overall strength and conditioning. We are seeing members exercise for
longer periods of time, more days each week and taking classes back to back more often. And
every day we welcome new faces into our facility.
• The recreation center fund is on track to cover our operating expenses and is projecting to
have a surplus of $60,000 in our first year of operation.
• The increased membership has lead to the addition of additional fitness equipment and the
constant evolvement of the group fitness class offering.
• The expansion of the parking lot is also underway. The project will more than double the size
of the current lot and provide and overflow connection to the skate park gravel lot.
• Finally, through the Community Needs Assessment conducted by an independent research
firmI a cross section of a representative population of McHenry residents were polled and
expressed strong interest in the potential expansion of the Recreation Center to include
indoor and outdoor aquatic facility offerings as well as a gymnasium with a walking track.
Additionally there was significant support to a willingness to pay for these added amenities.
204
Recreation Center Fund - FY18/19 Goals & Objectives
• Create a collaborative marketing plan for programs, events and facilities; whereby
increasing community reach, efficiency, return on investment.
• Increase visitation at rec center thereby increasing revenue.
• Research trends, explore community partnerships and evaluate existing programs in an
effort to consistently develop new programs and special events.
• Enhance Department's sponsorship program and apply it where applicable at the
Recreation Center.
• Run a successful campaign engaging with the residents of the City of McHenry to expand the
Recreation Center in accordance with the Master Plan for the facility.
205
Recreation Center Fund - FY18/19 Performance Measures
FT • Proposed
Item
Goal
Description
Through outreach to members
To maintain a 60%fitness
and continual update of
Membership loss is minimized
Membership Retention
membership retention rate for
offerings, the goal is to keep
and client base remains fairly
the facility.
members engaged and
constant.
interested.
In identifying a comprehensive
Further develop and apply a
sponsorship program, additional
Fostering community
Sponsorship
sponsorship program to the
community connections will be
partnerships and adding a
Recreation Center.
created as well introducing
revenue stream to the facility
additional revenue
To complete the comprehensive
Run a successful referendum
plan for the entire facility,
campaign, engaging the
pass a property tax referendum
Facility Expansion
adding a gymnasium, indoor
community to gain the support
to fund facility expansion.
pool and outdoor aquatic
needed to acquire the funds for
center
expansion
206
Recreation Center - Fund
400, D
Beginning Fund Balance
3,604,066 3,606,514 973,472 715,591 715,591 729
3210
Interest Income
2,448
11118
208
500
1237
500
3220
CD Interest
1114
11122
-
-
3240
-�
IL Fund Interest
1
34
-
3632
Concessions j
74
547
800
454
500
3641
Babysitting
590
120099
10,000
19,203
161000
3642 -i
Recreation Center Room Rentals F
21891
12,365
i 12,000
121.296
12,000_
3643
Birthday Parties
1,200
-
3i 644
_
Sponsorship/Advertisement
1,300
10500
-
-
3645
�
Annual Memberships
s
�
831053
478,874
I 475,000
586,180
11 576,000
3646
Short -Term Memberships
_
13,622
14,500
18,729
14,500
3647
Daily Admissions
-
933
5,303
137500
5,653
6,000
3648
Punch Passes
p
19,000
14,901
17,000
3649
Recreation Center Misc. Fees
17005
1,648
1,500
2 650
2,500
i
3650
Fitness Classes
8,450
8,500
6,660
7,000
3651
_
Small Group Personal Training
5,185
1 8,500
671
i 500
3652
Personal Training
405
3039,61
35000
44,538
40,000
3780
Transfer from Developer Donation Fund!
-
3882
i�
Miscellaneous Reimbursement
II
1
i
694
3910
Bond Proceeds
2,015,000
!
_
3965
Premium on Bonds Payable
17,938
=
3975
Transfer - General Fund
TOTAL REVENUES
2.448
2.124.122
589.123
601,500
713.866
692.500
0.00%
0.00%
(300)
-37.50%
6,000
60.00%
0.00%
(1,200)
-100.00%
(1,500)
-100,00%
101,000
21.26%
0.00%
(7,500)
-55.56%
(2,000)
-10.53%
1,000
66.67%
(1,500)
-17.65%
(8,000)
-94.12%
5,000
14.29%
-
0.00%
0.00%
0.00%
0.00%
0.00%
91,000
15.13%
N
O
00
4010
:Salaries
i 68,880
f
70,602
650011
106,696
4050 !Overtime
4130
;Salaries - FrontDeskAttendants
26,366
114,839
22,500
106,607
22,500
4135
Salaries -Front Desk Lead/Coordinator
545
22,750
301661
4140
Salaries - Childcare Attendants
��
- 4,419
'ice
21,559 !
21,500
29,145
_
21,500
4145
_ _
Salaries - RentalAttendants
7
_
_
500
450
450
_ -
i 450
4160
!S_alaries- Personal Trainers _
2,157
17,715 :
14,650
_
23,996
14,650
4165Salaries
-Orientation/Consultants
j
_
_4170
! Salaries - Group Exercise Instructors
12,441
63,316:
65,780
67,298
65,780
108
_4175 Salaries - Fitness Program Instructors
2,303 ��,
21000
2,900
_
2,000
_4180
'.Salaries - FacilityAttendants
2,787
14,004 �'..
15,450 -._
15,048
15,450
4310
: Health/Vision_
23,126'�:
12,612
181828
7,422
4320
Dental Insurance
937
517
_ _
816
417
-
-
4330
':Life Insurance
20
-
113
4340
Insurance Premiums Vision
39
32
36
70
4410
FICAMedicare -
31698
231003 !
18,088
25,881
19,050
4420
IMRF Retirement
- -
9,754
%023
12,873
13,337
4510
Uniform Allowance
_ _
_
1 r77
7 Snn
771a
7 Snn
TOTAL SALARIES/BENEFITS
5110 Contractual
5200 Contract Custodial
5210
Marketing&Advertising
5215
Retention/Promotion
- 5321
'Cable/TV
'., 5430
Training
5375 Repair&Maintenance- Equipment
5510 Utilities _
5600 Credit Card/Bank Fees
TOTAL CONTRACTUAL SERVICES
6110 'Materials and Supplies
6111
!Custodial Supplies
6120
-Childcare
fi13_0
_Supplies
Supplies - Safety
6141
Office Furniture/Equipment
6142
Fitness Equipment
6210
Office&Technology Supplies
TOTAL SUPPLIES
7400 jBond Issuance Costs
8200
:Buildings
8300
Equipment _
9901
General Fund Transfer
_ 9904
Transfer to Debt ServiceFund
9922
Purchase of Service - IT
TOTALOTHER
TOTAL EXPENDITURES
NET INCREASE/(DECREASE)
Ending Fund Balance
52,033 362,192 278,474 406,764 291,935
1,023 '
9,040
13,900
16,267
14,900
_ 4,839
24,960 '.,
24,960
21,840
24,960
10,497 :.
5,628
13,000
12,842
13,000
7,544
51340
51500
2,510
4,500
_ 64t8
2,778 _
4,000 -.
3,265
31000
-
567
- 43
1,528 :,
41000
3,036
50000
20,051 :
21,000
20,589
21,000
1,134
111093
6,400
10 309
10,000
- 25,728
80,418
92,760
912225
96,360
8,994
7,782 !.
_ 9,500
12,414
10,000
10,417
15,000
4,747
111000
1,649
1,475 !
1,500
1,824
_ 10500
2,615
11702 !.
_ 11000 '_
790
11000
1,353
1,000
2,355
10000
4,570
2,019 :.
3,000
5,906
31000
-
3.452
5.000
4.742
.4000
19,181 26,647 36,000 32,778
4,265,086 229,426
_ 400,000
305,507 151765 -
16,000 '..
-- _.
_
67_,37.7
- 132,356
135,756
- 4,660,222
377,547
551,756
- 4,757,164
847,004
958,990
2,44a (2,633,042)
(257,881)
(357,490)
3,606,514 973,902 715,591 358,101
32,500
33,452
545,000
10,000
135,756
134,056
24,736
169,208
713,792
699,975
11134,587
13,891
(442,087)
729,482
2871395
36,094
0
0
(22,750)
0
0
0
0
0
0
0
(5,190)
(100)
93
38
962
4,314
0
13,461
1,000
0
0
[1,000)
(1,000)
0
1,000
0
3,600
3,600
500
[4,000)
0
0
0
0
0
(3,500)
0'
0
145,000
(6,000)
0
(1,700)
(11,700)
162,036
175,597
51.12%
0.00%
0.00%
-100.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
-41.15%
-19.34%
465.00%
118.75%
5.32%
47.81
0.00%
4.83%
7.19
%
0.00%
0.00%
-18.18%
-25.00%
0.00%
25.00%
0.00%
56,25
3.88
5.26
-26.67%
0.00%
0.00%
0.00%
0.00%
0.00%
-9.72
%
0.00%
36.25
%
37.50%
0.00%
-1.25
%
-8.62%
29.37%
18.31%
Fiscal Year 2018/2019
Annual Budget
Special Service Area 4;4 Fund - Overview
The Special Service Area (SSA) #4 Fund is to account for revenues and
expenses associated with annual debt service for a sewer project that
was completed in 2004 in the Lakewood Road Subdivision. SSA's allow
a city to levy a property tax on property within a defined area to fund
specific improvements. Through an SSA payments are spread equally
over the identified number of taxable lots rather than through
assessment (Special Assessment). The total amount of the SSA is
$327,200 to expire in 2024.
Revenues
FY14/15 Actual - FY18/19 Proposed
$16,865
$16,860
$16,855
1850 16 849 $16,850
$16,850
$16,845
$16,840
$16,835 —_
y(OP
Av
Expenditures
FY14/15 Actual - FY18/19 Proposed
16 847 16 847 $16,847 {� 6 847 � 6 847,_$]�847
$18,000
$16,000
$14,000
$12,000
$10,000
$8,000
$6,000
$4,000
$2,000
Ja a�
area yaa
'Zoo ti`6 Ib
,y1\N
F
Lakewood SSA#4 = Fund
Beginning Fund Balance
3010 Property Tax Collections
3210 j Interest Income
3220 CD Interest
TOTAL REVENUES
424, Department 00
23 26 28 31 31 46
i
-- — 16,847 16,847 16,847 16,847 16,847 16,847 0.00%
1 1 2 - is -_. 0.00%
2 1 1 0.00%
16,850 16,849 16,850 16,847 16,862 16,847 - 0.00%
9936 ', Transfer to Utility Improvement Fund
TOTAL EXPENDITURES
NET INCREASE/(DECREASE)
Ending Fund Balance
16,847 16,847 16,847 16,847 16,847 16,847 0.00%
16,847 16,847 16,847 16,847 16,847 16,847 0.00%
3 2 3 I 15
26 28 31 31 46
d t
f
1 NL:
Capital Improvements Fund - Overview
The purpose of the Capital Improvements Fund is to account
for funds identified for the maintenance and construction of
public infrastructure projects other than water and sewer
utilities. This includes roads and public facility maintenance,
improvements and/or construction. No operating costs are
included in the Capital Improvements Fund. Capital
Improvements Fund revenues are derived from transfers from
other funds, primarily the General Fund Assigned for Capital.
Projects included in the Capital Improvements Fund are identified through the capital improvements
planning process which culminates in the development of an annual five-year Capital Improvement
Plan (CIP). The development of the CIP is an exercise that is undertaken, primarily, to ensure the City
Administration and City Council are able to identify the capital improvement and capital equipment
needs of the municipality. The document contains both Capital Improvement and Capital Equipment
projects, each with a cost of more than $10,000. The FY18/19 - FY22/23 CIP includes more than $60
million in projects and, due to the size and complexity of projects and the limited available funding,
it is not reasonable to believe that more than a handful of projects can be completed in any given
budget year.
Due to limited funds in FY18/19, the only projects identified for funding in the FY18/19 Budget are
related roadway projects that are being funded primarily through non -municipal sources. Total
project costs for FY18/19 (All Funds) are $2,754,502 however, the amounts shown below are for the
City's portion of funding.
FY18/19 General Fund Capital Improvements
1. Local Street Program including Pavement Maintenance $ 50,000
2. Pearl Street/Lincoln Road Improvements $ 629,000
3. Ringwood Road Improvements $ 53,000
4. Curran Road S-Curve Safety Improvements $ 31500
5. Bull Valley Bike Path Extension - Phase I Engineering $ 37,500
Total $ 773,000
213
Expenditures
FY14/15 Actual - FY18/19 Proposed
$5,000,000 $4,648,235
$4,500,000
$4,000,000
$3,500,000
$3,000,000
$2,500,000
$2,000,000
$1,500,000 $1,660,495
171,806 $1,322,209
$1,000,000
$500,000 $773,000
FY14/15 FY15/16 r- - - - - - - -
Actual Actual FY16/17 FY17/18
Actual Budget FY17/18 FY18/19
Estimated proposed
214
rovements = Fund
3210 Interest Income
3220 CD Interest
3882 jReimbursements Miscellaneous
3886 Reimbursements - State
3975 Transfer from General Fund
TOTALREVENUES
N 5110 Contractual Services
can 8100 1 Land Acquisitions
8200 Buildings
8600 Streets
8800
879Park Playground Improvements
8900 Capital - Other Improvements
9901 Transfer - Capital Equipment Fund
F TOTAL EXPENDITURES
� _ NET INCREASE/(DECREASE)
I
Ending Fund Balance
440
430 ' 1,011
211 ' 364
171,741
559,126 '
[171,741
5S%423
11254,820
1,119,190
1,2561195
1,171,806
(52,616)
1,233,542
517
141,364
212,453
948,145
308,050
1,541,592
t00
78,378
4,795,570 1,191,209
4,878125S 11192,209
2,0121733 297,209
2,498,552 925,000
99,625 100,000
37,325
4,648,235 11322,209
230,020 (130,000)
1,771,612 1,641,612
8,590 1,000 -
975,110
- j (11191,209)
983,700 11000 (1,191,209)
300,524 _ -
099,154 735,500
32,075 -
228,742
1,660,495
(6761795)
1,0941817
(297,209)
(189,500)
(100,000)
37,500
(549,209)
(772,000)
322,817
J /,JVV
773,000
0.00%
0.00°/a
0.00%
0.00%
-100.00%
-99.92%
0.00%
0.00%
-100.00%
-20.49%
-100.00%
0.00%
0.00%
-41.54%
1 z .
Capital Equipment Fund - Overview
The Capital Equipment Fund is utilized to track annual
expenditures of equipment replacement (e.g., vehicles,
computer equipment) as identified in the five-year Capital
Improvement Plan. No operating costs are included in the
Capital Equipment Fund. Capital Equipment Fund revenues
are derived from transfers from other funds, primarily the
General Fund Assigned for Capital.
Like the Capital Improvements Fund, Capital Equipment Fund � '!" "��'�'"�''` ''�` °
projects are identified through the capital improvements planning process which culminates in the
development of an annual five-year Capital Improvement Plan (CIP). The development of the CIP is
an exercise that is undertaken, primarily, to ensure the City Administration and City Council are able
to identify the capital improvement and capital equipment needs of the municipality. The document
contains both Capital Improvement and Capital Equipment projects, each with a cost of more than
$10,000. The FY18/19 - FY22/23 CIP includes more than $60 million in project and, due to the size
and complexity of projects and the limited available funding, it is not reasonable to believe that more
than a handful of projects can be completed in any given budget year.
Due to budgetary restrictions, no projects have been identified for funding in FY18/19 in the Capital
Equipment Fund.
Expenditures
FY14/15 Actual - FY18/19 Proposed
$300,000 68,374
$258,993
$250,000 ° "^
$228,743
$200,000
$150,000
$100,000
$50,000
$122
00
AV 40
�J as Jam e�
F ti 00
F,tiy
217
-Fund
450, Deuartment 001
Beginning Fund Balance 4
REVENUES
3210 Interest Income
� _ ( 82 171 I 52 - - - 0.00%
3220 CD Interest 112 70 70 j O.00o/a
- -
3975 Transfer from General Fund 23.152 2437225 238,370 228 743 (238,370)-100,00%
TOTAL REVENUES 23,346 243,466 122 238,370 228,743 0
_- (238,370)-100.00 /a
_I
I
- - �_ --
EXPENDITURES
8300 Capital Equipment 237,889 66,240 70,000 55,524 (70)000) 100.00%
— - -
N 8400 Capital Vehicles 30,485 1921753 454,895 168,370 193,722 (168,370)-100,00%
TOTAL EXPENDITURES 268,374 258,993 454,895 238,370 249,246 (238,370)-100,00%
NET INCREASE/(DECREASE) (245,028) (15,527) (454,773) (20,503)
Ending Fund Balance 490,803 475,276 20,503 20,503 -
so
�.ilk
•� O _-
"L
tat 4�n
fflt
Y ®_ I t� -
Fiscal Year 2018/2019
Annual Budget
Water/Sewer Revenues and Public Works
Water, Wastewater, Utility Divisions
220
Water & Sewer Fund - Overview
The Water and Sewer Fund is an enterprise fund - that is, a business -
type fund utilized to account for operations and activities that are
financed and operated in a manner similar to a private business
enterprise, and where the cost of providing goods and services to the
general public on a continuing basis is expected to be recovered
primarily through user charges, including operating costs and capital
improvement costs related to the maintenance of the water and
sewer utility systems. These fund the operations of the Water,
Wastewater and Utility Divisions in the Department of Public Works.
The operating functions of these three divisions are to provide a safe
and reliable supply of high quality potable water and to protect
public health and the environment by treating sewage to meet
stringent environmental standards prior to discharge.
�o-s DEEP
Of note, the Utility Division was established in FY15/16 combining existing Water and Wastewater
Division Maintenance Workers to specifically address utility system maintenance needs more
routinely. Prior to this, utility maintenance projects were addressed by either the Water or
Wastewater Division and often required coordination with the other division to ensure adequate
manpower. The creation of the Utility Division established a more efficient methodology to handle
utility maintenance projects. The expenses for the Utility Division are split between the Water and
Wastewater Divisions as follows - approximately 63.7% of operating expenses are paid from the
Water Division and the remaining 36.3% are paid from the Wastewater Division. Capital expenses
are charged to the division that benefits from the maintenance project.
In general, water and sewer revenues are derived directly from water and sewer sales, base charges,
connection fees, and service penalties and should be sufficient to fund the operating and capital costs
for the Water, Wastewater and Utility Divisions. Importantly, water and sewer revenues are driven
by consumption and, as such, with a growing awareness of water conservancy (which the City
supports) and wetter than average summer months, consumption has been relatively flat over the
last two years.
Prior to FY15/16, water and sewer rates were adjusted annually based primarily on the Consumer
Price Index (CPI). Unfortunately, this CPI adjustment did not correlate to the actual cost of operations
for McHenry's Water and Wastewater Divisions and did not account for the specific capital
infrastructure needs of the municipality. This resulted in a shortfall in water and sewer revenues
and an inability to fund water and sewer capital projects of the existing systems. To address this the
City commissioned a water and sewer rate study that was completed in FY13/14. The results of this
analysis identified the need to adjust water and sewer rates at that time and to annually review and
adjust water and sewer rates based on operational costs and implement water and sewer base fees
to fund utility system capital improvements.
The narrative that follows provides a snapshot of the status of the Water and Sewer Fund and
identifies operational and capital expenses. This is followed by more detailed summaries of the
Water, Wastewater and Utility Divisions of the Department of Works.
221
FY18/19 Water Division
FY18/19 Water Division operating expenditures are proposed at $2,271,953, an increase of
$111,864 from FY17/18. This increase is due to the funding of the Utility Division transfer
(again, the Utility Division is funded through contributions by water and wastewater).
Budgeted Operating Revenues for FY18/19 are short of budgeted operating expenditures by
$86,381. Rates will be addressed after the budget is approved and discussed with Council
before they need to be adjusted in August.
It is estimated that the existing $2 capital base charge will generate $125,000 in FY18/19 for
capital projects. In FY18/19 this amount, along with Water and Sewer Fund Balance, will be
used to fund the following water system capital projects identified in the Water and Sewer
Fund CIP - $225,000 for water meter replacement; $30,000 for Well Inspection/Maintenance
and Repair; and, $45,000 for the Water Division Motor Pool. No increase or decrease in the
base rate is recommended at this time.
FY18/19 Wastewater Division
FY18/19 Wastewater Division operating expenditures are projected at $3,215,573, a
decrease of $17,542 from FY17/18. This decrease is due partially to lower utility costs but
the funding of the Utility Division transfer was increased to cover proposed expenses (again,
the Utility Division is funded through contributions by water and wastewater). Proposed
operating revenues for FY18/19 are expected to exceed proposed operating expenses by
$34,145. Rates will be addressed after the budget is approved and discussed with Council
before they need to be adjusted in August.
It is estimated that the existing $4 capital base charge will generate $270,000 in FY18/19 for
capital projects. This amount, along with existing Water and Sewer Fund Balance, will be
used to fund the following water system capital projects identified in the Water and Sewer
Fund CIP - $40,000 for Willow Lift Station Pump Replacement; and, $65,000 for Wastewater
Division Motor Pool. No change in the base rate is being recommended at this time.
FY18/19 Utility Division
FY18/19 Utility Division operating expenditures are projected at $1,069,894, an increase of
$12,390 from FY17/18. As identified in the Water and Wastewater discussions above, the
Utility Division is funded through transfers from the Water and Wastewater Division
revenues. If in one year the transfers from the Water and Wastewater Division exceed
expenses within the department, adjustments are made in following fiscal years. This will
result in lower operating budgets for the Water and Wastewater Divisions.
222
Public Works Water Division
Public Works Water Division Mission
The primary focus and overlying responsibility of the Water
Division is to provide a safe and reliable supply of potable water.
This is accomplished by producing, treating water and conducting
over 500 required water samples, therefore meeting or exceeding
all federal and state health standards. Of major importance to the
Water Division employees is providing the consumer with the
highest level of customer service possible. We believe this inspires
public trust within the community.
In summary, Water Division employees undertake the following tasks:
• Provide safe potable water that meets or exceeds State and Federal Drinking Water
Regulations.
• Water Production - The Division maintains four iron removal filtration treatment plants
served by eight active wells. The City has two emergency or backup wells that have no iron
removal filtration but do have temporary chemical feed buildings.
• Water Storage consists of four elevated water storage tanks with a combined storage capacity
of 2,750,000 gallons.
• One booster pumping station.
• Provide meter readings to the Finance Department for utility billing for City water and sewer
services. The Division maintains an ongoing meter replacement program of approximately
8,000 water meters.
• Respond to Joint Utili Locate Information for Excavators (J.U.L.I.E.) requests.
• Respond to consumer inquiries within 24 hours regarding water quality or high consumption
questions or general concerns.
• The Water Division plays an important part in the maintenance and future development of
City's Global Information System.
223
Public Works Water Division - Organizational Chart
224
Public Works Water Division - FY17/16 Accomplishments
• Met or exceeded all State and Federal Drinking water regulations.
• The Water Division employees provided a high level of customer service by responding
to customer requests within 24 hours and making available information consumer's
need to be informed about their drinking water source and water treatment
technologies. We believe this inspires public trust within the community.
• In 2017, the Water Division produced 783 million gallons of potable water and provided
meter readings for nearly 8,000 water and sewer accounts for billing purposes.
• Received 21St consecutive annual fluoride award from the Illinois Department of Public
Health.
• Changed out over 800 water meters
• Responded to over 5,000 J.U.L.I.E. locate requests.
• Help to develop a lead service inventory data base, utilized within the City's GIS system.
• The Water Division had no reported personnel injuries or accidents in the past year.
225
Public Works Water Division - FY18/19 Goals & Objectives
• Continue to meet or exceed all Federal and State drinking water regulations.
• Provide a high level of customer service by responding to customer requests within
24 hours and make available information consumer's need to be informed about their
drinking water source and water treatment technologies.
• Continue to maintain water treatment facilities while remaining in budget.
• Expand lead service line inventory data base.
• Change out 1000 water meters
• Continue to be injury and accident free.
226
Public Works Water Division - FY18/19 Performance Measures
PerformancePerformance
•-
•
Item
Goal
Measure
P...-.O
IEPA Compliance
Achieve 100% compliance
Was 100% compliance
100% compliance is expected with no
in all categories
achieve with no violations
violations
Respond to Customer
Respond to all inquiries
Percentage responded to
Inquiries and Complaints
within 24 hours of
within 24 hours
100%
receiving
Complete all Capital
Capital Projects
Projects on time within
Were projects completed
100%
budget
on time and within budget
Were 1,000 meters
Meter Replacement
Replace 1000 meters
replaced in the previous
Yes
year
Safety -Personal
Zero Injuries/ Accidents
How many reported
Zero
Injury/Vehicle Accidents
injuries/accidents
227
Public Works Water Division - Revenues Summary
Total Revenues
FY14/15 Actual - FY18/19 Proposed
$3,000,000 2,792,44
$2,500,000
061113$2,129,783 $2,169,072 $2,230,545 $2,185,572
$2,000,000
$1, 500,000
$110001000
$500,000
FY14/15 FY15/16 FY16/17Actual FY17/18
Actual Actual FY17/18 FY18/19
Budget Estimated
Proposed
f► t
Public Works Water Division - Expenditures Summary
Total Expenditures
FY14/15 Actual - FY18/19 Proposed
$2,500,000 - $2 438 265
18,856$2,076,487 $
2,160,089 $2,270,233
$2,000,000 $1,994,063
$1,500,000
$11000, 000
$500,000
FY14/15 FY15/16 FY16/17—�
Actual Actual FY17/18 FY17/18
Actual Budget FY18/19
Estimated proposed
229
Water and Sewer Fund
3200 Interest Income
3220 1 CD Interest__
3240 IL Fund Interest
3610 Sales
3615 Base Charge - Capital
3620 Penalties
3630 Hookup/Connection Fees
3640 Water Meter Sales
3836 Gain/Loss on Sale
3845 Rental Income
3882 (Miscellaneous Reimbursement
3890 I1Miscellaneous Income
3920 iProceeds from Fixed Asset Sale
3991 Transfer from Marina Fund
p -
TOTAL REVENUES
TOTAL OPERATING REVENUES
510, Department 31 Water
- - 1,500 - 31000 10500 100.00%
969 - - 0,00%
_ 131 951 37031 - - 51488 0,00%
2,047,402 2,066,124 2,19%343 2,107,572 2,138,222 2,107,572 0,00%
51,006 1211R39 125,000 122,897 1 1251000 0,00%
521141 60,359 75,240 55,000 84,764 701000 15,000 27,27%
124500 18,610 29,250 _- 15 000 14,250 15,000 - 0,00%
13,225 20,000 L_ 27,000 15,000 12,525 _ 15,000 0,00%
4 261 0,00%
i
- 62,604 _ 0,00%
i
987 _1 2142 1 775 - 0,00%
_ 5,385 1,896 513,866 5 000 2,071 5,000 0,00%
0,00%
- - 0,00%
2,137,086 21221IS41 3/0337917 21324,072 2,380,217 23401572 16,500 0.71%
2,106,113 21129,783 21792,449 21169,072 21230,545 2,185,572
N
w
N
I I i I I I
4010 Salaries - Regular 652,819 314,433 391,895� 407,429 403,674 433,380 25,951 6.37%
4050 Overtime =Regular 36,525 22,119 22,859 24,000 23,314 24,000 0.00%
4110 Salaries - Seasonal 12 710 10,347 81800 11)500i 11,195 11,500 0.00%
4310 Health Insurance _ 179,074 1029182 109,295 I'I 120,230 119,161 �_ _ (22,509)-18.72%
4320 Dental Insurance 2,322 1,304 93333 978 912 I_ 953 (25) -2.56%
4330 Life Insurance _ 376 195 205 ZZO 210 _ 226 6 2.73%
4340 Vision Insurance_ 49 47 85 95 87 95 0.00%
- - -
4410 FICA 52,352 27,581 31,902 33,884 ' 34,698 35,869 11985 5.86%
4420 IMRF ---- 97,537_ 72,631_-_-_-_53,605 55,137 _ 56Z49 57,172_ 21035 3.69%
4510 Uniforms 2,649 11342 1,610 2,025 1,578 21025 0.00%
TOTAL SALARIES/BENEFITS 1,036,413 552,181 621,189 655,498 651,078 662,941 7,443 1.14%
5110 ( Contractual 77,059 76,228 108,047 130,000 98,521 130,000 0.00%
- --
5310 Postage & Meter 31523 4,289 31276 4,500 2,789 31000 (1,500)-33.33%
5320 (Telephone 5,167 I 51369 51277 6,000 j 2,119 (61000)-100000%
5370 Repair & Maintenance 20,533 2,370 51258 4,000 4,780 51000 1,000 25.00%
-- _ 5410 LDues _ - 562 396 260 500 730 800 300 60.00%
5430 Training 2,726 1,326 1,721 2,500 1,715 2,500 - 0.00%
5440 ;Tuition Reimbursement 9 0.00%
5510 Utilities 167,915 143,581 191,442 140,000 111,374 125,000 (15)000)-10.71%
TOTAL CONTRACTUAL SERVICES 277,485 233,559 315,290 287,500 222,028 266,300 (21,200) -7.37%
j 6110
Materials and Supplies
�.___
215,440
148,612
134,093
145,000
141,662
145,000
6210
!Office Supplies
955
78
421
650
153
650
6250
Gasoline & Oil
28,899
7,483
6,451
71000
6,947
71000
6270
Small Equipment & Tools
11966
795
932
11250
1,591
1,250
6940
Administrative Expenses
2.243
2.104
2.522
2.102
TOTAL SUPPLIES
249,503 159,072 144,419 153,900 152,455 153,900
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
7091 Debt Service - Accrued Interest
7100 Principal Payment
' 773U water�aewer iransrer- unury�apital
TOTAL OTHER
N
W
N
TOTAL OPERATING EXPENDITURES
TOTAL EXPENDITURES
508
Lltf,Y3Y
121095
� L1ti,'/3/
15,207
4,027
664,822
Z'L2,U18
16,142
41109
902,719
I ZL5,348
225,348
� 230,982
16,019
16,019
18,453
3,954
41227
515,066
50,000
4,227
515,066
50,000
41331
- 627,329
9261087
11626,952
1,858,390
1,613,191
1,520,502
11692,092
2,018,856 2,076,487 2,438,265 2,160,089 1,994,063 2,270,233
2,489,488 2,571,764 2,939,288 2,710,089 2,546,063 2,775,233
0.00%
5,000
5.26%
(1,900)
-4.28%
350
0.00%
0.00%
0.00%
0.00%
0.00%
5,000
1.00%
16
0.02%
-
0.00%
5,634
2.50%
2,434
15.19%
104
2.46%
112,263
21.80%
(50,000)
-100,00%
78,901
4.89%
110,144 5.10%
65,144 2.40%
Public Works Wastewater Division
Public Works Wastewater Division Mission
It is the mission of the Public Works Department Wastewater
Division to protect public health and the environment by i
treating sewage to meet stringent environmental standards ,---'
prior to discharge. The functions of the wastewater division
are to operate and maintain two wastewater treatment plants
and nineteen lift stations. The goal of the Wastewater
Division is to efficiently maintain these facilities and to produce plant effluents that either meet or exceed State and
Federal standards. The division is also responsible for the
removal and disposal of all the by-products generated by the treatment process. This is accomplished
by daily testing and monitoring of the treatment process and by operating the sludge de -watering
machines.
In summary, Wastewater Division employees undertake the following tasks:
• Provide for the operation and maintenance of two wastewater treatment plants and the
care and upkeep of nineteen lift stations
• Conduct daily testing to ensure the treatment processes are working correctly and make
any necessary changes to operations
• Maintain records on the amount of wastewater treated and the quality of water discharged
to the Fox River and report this information to the Illinois Environmental Protection Agency
in compliance with NPDES permits.
233
Public Works Wastewater Division - Organizational Chart
234
Public Works Wastewater Division - FY17/16 Accomplishments
• In 2017 the Wastewater Division achieved 100% compliance with the NPDES permits.
• The Wastewater Division purchased its second and final hook -lift truck and roll -off
dumpsters. This was also included in FY 2017/18 CIP.
• Oversaw construction of the Wastewater Treatment Plant consolidation/expansion project
Final competition was achieved in January 2018.
• Highlights of the consolidation/expansion project are:
o Microscreens at the headworks of the South Wastewater Treatment Plant. These
screens are relatively new in the wastewater treatment industry. This new type of
screen is very efficient at removing debris, sand and grit from the wastewater before
it is cleaned and treated.
o Anew wastewater treatment was constructed on Charles Miller Road to replace the
old treatment plant on Waukegan Road. It is a stat of the art treatment plant and only
the second one of its kind in Northern Illinois. The treatment plant went into service
in November 2017 and will ensure that The City of McHenry will continue to meet or
exceed our discharge permit requirements.
o A dryer was installed to dry the sludge cake, which is a by-product of the treatment
process. Once this cake is dried it will reduce the cost of disposal significantly and
provide the City with a safe and effective fertilizer that can be sold or given away.
Further reducing the disposal cost.
235
Public Works Wastewater Division - FY18/19 Goals & Objectives
• Operate new treatment plant and related equipment efficiently and productively.
• Continue to meet or exceed the NPDES permit requirements and regulations as set forth by
the Illinois Environmental Protection Agency.
• Operate treatment plants and lift stations in a manner that minimizes the potential for a
sanitary sewer overflow.
• Look for ways to continue to achieve the high level of service and minimize operating costs.
236
Public Works Wastewater Div- FY18/19 Performance Measures
Performance
Performance
P-
•
Goal
Measure
ProposedItem O
Compliance with all NPDES
100% Compliance with all
Annual inspection/evaluation
Satisfactory annual
Permits issued by the IEPA
permits at all times
and monthly reports
inspection/report and no
violations on monthly reports
Sludge Production
Reduce the quantity of sludge
Track sludge
A lower expense for sludge
produced and hauled
production/hauled and
disposal
calculate disposal cost
Energy consumption
Decrease the amount of
Start tracking and analyze
Reduced utility bills
energy used
utility bills
Lift Stations
Reduction in number of off
Track the number of call -outs
Less call -outs equal lower
hours call -outs
to each lift station
overtime costs
Operation of new treatment
Optimize the performance of
Gather laboratory data on the
See improvement in
plant and related equipment
the new treatment plant
plant performance. Establish a
laboratory analysis
baseline for the lab test results
237
Public Works Wastewater Division - Revenues Summary
Total Revenues
FY14/15 Actual - FY18/19 Proposed
$3,250,000 $3,246,140 $3,249,718
$3,209,554
$3,200,000
$3,150,000
$3,100,000
$3,050,000
$3,000,000
2,955,075 -
$2,950,000
$2,900,000
$2,850,000
$2,800,000 —
FY14/15 FY15/16 FY16/17
Actual Actual Actual FY17/18 FY17/18 FY18/19
Budget Estimated
Proposed
238
Public Works Wastewater Division - Expenditures Summary
Total Expenditures
FY14/15 Actual - FY18/19 Proposed
$3,500,000 j $3,1951382 $3,233,115
$3,215,805
$3,000,000 101922
$2,659,577
$2,500,000
$2,000,000
$1, 500, 000
$1,000,000
$500,000
FY14/15 FY15/16 FY16/17
Actual Actual Actual FY17/18 FY17/18 FY18/19
Budget Estimated
Proposed
239
N
O
Water and Sewer Fund Summary Fund 510, D
3200 Interest Income
3220 CD Interest -
3240 I IL Fund Interest
3610
Sales
3615
Base Charge - Capital
3620
1 Penalties
3630
11 Hookup/Connection Fees
3660
Debt Service Fee
3665
Debt Service - IEPA Loan
3890
Miscellaneous Income
3915 Bond Interest Rebate
TOTALREVENUES
ment 32 Sewer
131 951
_ 2,429 160 1 ,415,863
- 106,501
I
Budgete Proposed
10500 i - 3,000
51488
64 270,000
70 58,000
_ 12,000 I 16,500 'i 52,213
401,343 397,997 407AS61
1,500
(12,617)
(10,000)
7,000
_2981173
1,0191732
I 1,600,000
� 1,443,809
I 4,200 000
2,600,000
_ 26,247 16,134
10,653
5,000
3,883
15,000
10,000
64,249 64,953
63,005
61,647
61647
59 342
(2,305)
21989,628 3,376,249
41367,938
5,131,140
41934,471
71724,718
2,593,578
100.00%
0.00%
0.0
0
0.46%
3.70%
12.07%
0.0
0 %
0.0
0
162.50
%
200.00%
3.74%
50.55%
TOTAL OPERATING REVENUES 2,977,628 2,955,075 3,030,629 3,246,140 3,209,554 3,249,718 3,578 0.11%
EXPENDITURES
I
i
i
4010 Salaries Regular 641,970 511,445 567,761 688,057 1 4981602 62%663 (58,394) -8.49%
4050 Overtime - Regular 41,282 29,613 40,524 40,000 42,787 40,000 0.00%
4110 Salaries - Seasonal 2,457 _ 51127 3,134 5,000 4 610 J 51000 0.00%
4310 Health Insurance 174,434 129,058 158,386 181,161 157,099 181,405 244 0.13%
4320 Dental Insurance
792 810 820 858 _ 499 _ 834 (24) -2.80%
4330 Life Insurance 396 307 330 280 329 369 89 31.79%
4340 Vision Insurance 133 133 111 70 65 140 70 100.00%
4410 FICA 52,155 41,733 46r687 56,079 44,319 51,612 (4,467) 7.97%
4420 IMRF _ 90,575 118,653653 83,134 93,046 72,382 _ 83,708 (9)338)-10.04%
4510 Uniforms 4,665 37895 31514 31000 2 988 5 500 2,500 83.33%
TOTAL SALARIES/BENEFITS 17008,859 840,774 904,401 11067,551 823,680 998,231 (69,320) -6.49%
5110 Contractual
5310 Postage & Meter
5320 Telephone
5370 (Repair&Maintenance
5375 ; Repair & Maintenance -Equipment
5380 Repair & Maintenance - Utility Systa
5410 IDues
5430 Training
5440 _!Tuition Reimbursement
5450 lPublications
5510 !Utilities -
5580 Sludge Disposal
TOTAL CONTRACTUAL SERVICES
6110 'I Materials and Supplies
6210 Office Supplies
6250 Gasoline & Oil
TOTAL SUPPLIES
6940 jAdministrative Expenses
7091 �DebtService- Accrued Interest
7100 Principal Payment
7200 Bond Interest
7300 Fees - Paying Agent
8300 Capital - Equipment
8500 Capital - Utility System
9000 Amortization - Bond Issue Costs
9100 Amortization - Bond Discount
9510 Depreciation Expense
9904 Transfer to Debt Service
9920__ Purchase of Service - MCMRMA
9921 Purchase of Service - Billing
9922 Purchase of Service -IT
9923 Purchase of Service - Audit
9930 Water/Sewer Transfer
9930 Water/Sewer Transfer - Utility Capital
9936 Transfer to Utility Improvement Fund
TOTAL OTHER
TOTAL OPERATING EXPENDITURES
TOTAL EXPENDITURES
1731150 1
189,677
j 167,109 i
190,000
369
342
289
300
31384 !
31917
4,284
3,000
201362
15,753
19,200
14,000
571710
71,159
51,427
70,000
56.137
47.931
60.340
91.000
594 I 514 j 260 I 400
1149 L 53 465 750
555 225 -1,000
231,132
875,536
264,065
12,194
87.976
772
274,378
272
508
I
1,500
700
1,000
23
1,000
265,854
250,000
234,567
' 263,847
195,000
I 210,162 !
195,000
838,291
942,627
855,450
832,723
I
810,800
212,676
209,798 j
214,000
157,095
220,000
820
545' _
750
447
750
2Q028
17,378
15,000
19,282
20,000
(9,000) -4.74%
0.00%
(3,000)-100,00%
6,000 42.86%
0.00%
0.00%
1,100 275,00%
250 33.33%
0.00%
0.00%
0.00%
(44,650) -5.22%
6,000 2.80%
0.00%
233,524 227,721 2291750 176,824 2401750 11,000 4.79%
2,676 3,640 _ 31600 0.00%
06 7); (2,484) 2,567) 0.00%
1755 000 265,000 10 000 3 92°
941
�IrZ•'
233,188 ':
11,750
4,027
381,163
1,714,342 2,108,062
2,710,922 2,8561299
3,862,802 4,020,651
2
12,231
4,108
568.217
89188 189181
188 ,920 (7,268) -3.84%
1,100 11053 11100 0.00%
_ 0.00%
- 0.00%
� 0.00%
0.00%
00,000 1,195,678 1,2001000 0.00%
12,484 12,484 12,486 2 0.02%
86,695 86,695 86,695 0.00%
40,236 240,236 246,242 61006 2.50%
12,168 12,168 14,641 2,473 20.32%
4,227 4,227 4,331 104 2.46%
79,266 2791266 353,609 74,343 26.62%
70,000 270,000 (270,000)-100,00%
0.00%
4,034,541
233,524 227,721 2291750 176,824 2401750 11,000 4.79%
2,676 3,640 _ 31600 0.00%
06 7); (2,484) 2,567) 0.00%
1755 000 265,000 10 000 3 92°
941
�IrZ•'
233,188 ':
11,750
4,027
381,163
1,714,342 2,108,062
2,710,922 2,8561299
3,862,802 4,020,651
2
12,231
4,108
568.217
89188 189181
188 ,920 (7,268) -3.84%
1,100 11053 11100 0.00%
_ 0.00%
- 0.00%
� 0.00%
0.00%
00,000 1,195,678 1,2001000 0.00%
12,484 12,484 12,486 2 0.02%
86,695 86,695 86,695 0.00%
40,236 240,236 246,242 61006 2.50%
12,168 12,168 14,641 2,473 20.32%
4,227 4,227 4,331 104 2.46%
79,266 2791266 353,609 74,343 26.62%
70,000 270,000 (270,000)-100,00%
0.00%
4,034,541
2
12,231
4,108
568.217
89188 189181
188 ,920 (7,268) -3.84%
1,100 11053 11100 0.00%
_ 0.00%
- 0.00%
� 0.00%
0.00%
00,000 1,195,678 1,2001000 0.00%
12,484 12,484 12,486 2 0.02%
86,695 86,695 86,695 0.00%
40,236 240,236 246,242 61006 2.50%
12,168 12,168 14,641 2,473 20.32%
4,227 4,227 4,331 104 2.46%
79,266 2791266 353,609 74,343 26.62%
70,000 270,000 (270,000)-100,00%
0.00%
4,034,541
2,550,364
2,292,028
21366,024
(184,340)
-7.23%
3,1951382
31233,115
21659,577
3,2151805
(17,310)
-0.54%
6,109,290 41703,115 41125,255 4,415,805
Public Works Utility Division
Public Works Utility sion Mission
The City of McHenry Utility Division is committed to
providing the highest level of customer service to its
residents and consumers. Maintaining the water
distribution and sanitary sewer collection systems to peak
performance will continue to ensure reliable services to City
of McHenry's residents, and businesses. This will enhance
public safety within the community.
The Utility Division maintains and repairs all water mains,
valves, fire hydrants, and "buffalo" boxes which are all part
of the water distribution system. Another component of the Utility Division is to maintain, clean, and
televise the sanitary sewer collection system.
In summary, Utility Division employees undertake the following tasks:
• Maintain sanitary sewer collection system.
• Maintain water distribution system.
Utility Superintendent
Steve Wirch
Operator I
Sean Johnson
Maintenance Worker
Clint Greve
Maintenance Worker
Pat Maher
Maintenance Worker
Ryan Cheney
�y
Operator)
Steve Ramirez
Maintenance Worker
Todd Sasak
Maintenance Worker
Mike Lange
CITY OF MCHENRY
7 1��R •T��^�
1 Indusltlal give
7
eu. 1 i1 s
Public Works Utility Division - FY17/18 Accomplishments
• Replaced 8 "Eddy" fire hydrants due to age and non -availability of repair parts.
• Flushed all of the City's fire hydrants for spring and fall hydrant flushing program.
• Cleaned and televised over a 209,000' (39 miles) of sanitary main including the subdivisions
of Rubloff Development, Shoppes at the Fox, Mill Creek Subdivision, Evergreen Circle,
Brittney Park, and Timber Trails and others including routine maintenance lines
• Repaired 9 water main breaks.
• Repaired 15 water services, replaced 15 lead services from the water main to B-Box.
• Responded to 17 possible sewer backups.
• Replaced 25 open hole sanitary frames and covers with closed "sealed" frames and covers.
• On March 24, 2017 the City of McHenry participated in ajoint-bid with the Village of Huntley
and the Village of Cary for sanitary sewer main lining and sanitary manhole lining work. In
2017 the manhole portion of the scope of work was completed and several brick/block
structures were rehabilitated at locations on Main Street, Elm Street, Waukegan Road, Crystal
Lake Road, Richmond Road, Broad Street, Pearl Street, and Washington Street. Sewer main
lining locations are on sections of High Street, Oakwood Drive, Front Street, Shepard Hill
Lane, Grand Avenue, Pearls Street, Charlotte Avenue, Victoria Avenue, Virginia Avenue,
Cresent Avenue, Lillian Street, Clover Avenue and Timothy Lane.
The work is being completed by the prime contractor Visu-Sewer Inc. The remaining balance
of sanitary sewer main lining will be completed in the winter/spring of 2018 prior to the end
of FY17/18a All engineering, construction inspection, and project management has been
completed by Public Works and Utility Division Staff.
244
Public Works Utility Division - FY18/19 Goals & Objectives
■ Continue to keep the sanitary collection system well maintained that includes cleaning and
televising the entire collection system.
■ Reduce inflow and infiltration in collection system through the Capital Improvement
Program that includes the sanitary sewer main and sewer manhole rehabilitation programs.
Change old style manhole covers to "new" sealed covers.
■ Continue to keep the water distribution system well maintained with the water valve
maintenance program and fire hydrant spring and fall flushing programs. Also through the
water main replacement program through the Capital Improvement Program.
■ Replace the 10 fire hydrants due to age and non -availability of repair parts
■ Continue hydrant painting program
245
Public Works Utility Division - FY18/19 Performance Measures
•-
•-
•
Item JE=t�-
Goal
Measure
Proposed Outcome(s)
Fire hydrant
Replace outdated fire
Number of hydrants
Replace 10 fire hydrants
replacement
hydrants
replaced
Clean & Televise
100,000 Lineal
Clean & televise 100,000 lineal
sanitary sewer
ft/year
Lineal ft/year
ft/year
collection system
Complete spring and
Flush all hydrants
Completion of spring and fall
Hydrant Flushing
fall hydrant flushing
spring and fall
flushing programs
programs
Grout
Reduce
manholes/install
Number of manholes
10 manholes repaired
inflow/infiltration
sealed frames and
repaired
covers
Hydrant painting
Sandblast, prime and
Number of hydrants
20% of hydrants in distribution
program
paint fire hydrants
that were painted
system
r�.
Public Works Utility Division - Expenditures Summary
Total Expenditures
FY14/15 Actual - FY18/19 Proposed
$1, 200, 000
$110571504 $1,089,311 $1,068,165
$989,312 $989,499
$1,000,000
$800,000
$600,000
$400,000
$200,000
9,991
FY14/15 FY15/16 FY16/17Actual FY17/18
Actual Actual FY17/18 FY18/19
Budget Estimated
Proposed
247
Water and Sewer Fund Summary (Fund 510, Department 35 Utility)
3890 Miscellaneous Income
3978 Transfer from Water/Sewer Fund
TOTAL REVENUES
-
1,045,985 11470,936 794,332 794,332 980r938
1,045,985 11470s936 794,332 794,332 980,938
186
,606
186,606
0.00%
23.49%
23.49%
4010 Salaries -Regular 16,645 541,157 505,757 551,607 587,414 566,974 15,367 2.79%
4050 Overtime - Regular 41015 19,654 24,260 25,000 18,410 25,000 - 0.00%
4110 Salaries - Seasonal 10,884 10,000 10,820 123000 2,000 20.00%
4310 Health Insurance - 1332840 135,791 1457384 1680486 133,294 (12s09O) -8.32%
4320 Dental Insurance 986 978 11033 11286 11005 (28) -2.71%
4330 Life Insurance 274 290 552 305 328
4340 Vision Insurance 16 9 13 65 13 0.00%
4410 FICA 1,482 40,538 40,405 44,875 49,S76 46,204 1,329 2.96%
4420 IMRF 2,S58 106,233 66,605 73,690 81,301 73,997 307 0.42%
4510 Uniforms 1,904 3,759 3,300 1,546 3300 0.00%
TOTAL SALARIES/BENEFITS 24,700 844,602 788,738 8S5,454 919,209 862,115 62661 0.78%
5110 Contractual - 15,809 26,074 15,000 13,902 15,000 - 0.00%
5310 Postage &Meter - - 100 100 0.00%
5320 Telephone 1,184 988 11250 683 (1,250)-100.00%
5370 Repair & Maintenance 740 14,425 10,317 10,000 29,086 153000 S,000 S0.00%
5410 Dues 130 SO 200 169 200 0.00%
5430 Training 160 871 500 11733 1,000 500 100000%
TOTAL CONTRACTUAL SERVICES 740 31,708 38,300 27,050 45,573 31,300 41250 15.71%
6110 Materials and Supplies
6210 Office Supplies
6250 Gasoline & Oil
6270 Small Equipment & Tools
TOTAL SUPPLIES
9510 ,Depreciation Expense
TOTAL OTHER
TOTAL EXPENDITURES
Me
41551 L_-100 707 1 144,425 150 000000 102,7.01 15Q000 0.00%
_ 1 290 316 500 250 (250)-50.00%
10,758 17,441 16,000 13,751 16,000 - 0.00%
1,247 279 1,250 827 1,250 0.00%
4,551 113,002 162461 167,750 117,279 167,500 (250) -0.15%
77250 7,250 7,250 0.00%
71250 7,250 7,250 - 0.00%
29,991 989,312 989,499 1,057,504 11089,311 11068,165 10,661 1.01%
aa: u
,
�a--.
Capital Development Fund - Overview
This fund accounts for the construction, expansion and/or extension of
water and wastewater systems to accommodate new development and
growth in the community. Revenues are generated through capital
development fees on new residential and non-residential development.
Revenues
FY14/15 Actual — FY18/19 Proposed
$450,000 $410,953
$400,000 39b /9 1 nnn
$350,000 9
$300,000
$250,000
$200,000
$150,000
$100,000
$50,000
h tiQ 0a �� °e
y
F
Expenditures
FY14/15 Actual - FY18/19 Proposed
51,19s,910
$1,zoo,000
$1,000,000
$800,000
$600,000
$400,000
$200,000 S_ $
'YAP y�P 1PG Q,�a$ �� o5ea
��\ Fa
y�C5
�ti1\ y(b\ti
251
Development - Fund
3200 Interest
3630 .Hookup/Connection Fees (31-Water)
3630 Hookup/Connection Fees (32 - Sewer)
TOTAL REVENUES
_ 9936 ', Transfer to Utility Improvement Fund
TOTAL EXPENDITURES
NET INCREASE/(DECREASE)
N
U'1
N
55
1,197 _ ._ 569 11060 -__ 2,000 1,060 11000
r
121,863 _ 194,088 i201,724 _ 150,000 192,573 180,000
�— —
127,780 194,070 208,169 160,000 203,157 190,000
250,840 388,727 410,953 312,000 396,790 371,000
1,195,910
1 195 910
250,840 388,727 (784,957)
312,000 396,790
371,000
(1,
000)
30,000
30,000
59,000
0.00%
0.00%
312,000 396,790
371,000
(1,
000)
30,000
30,000
59,000
0.00%
0.00%
d
Utility Improvements Fund - Overview
The Utility Improvements Fund was created to provide a single It to
record revenues and expenses for capital construction projects for the
water and wastewater utilities. Transfers from the Water & Sewer Fund
and Capital Development Fund are the main sources of revenue for the
fund. Expenses are restricted to design engineering, construction, and
construction engineering costs for the approved capital projects. Identified
expenditures are related to the consolidation of the Central and South
Wastewater Treatment Plants.
Revenues
FY14/15 Actual - 17Y18/19 Proposed
$2,940,509
$3,000,000
$2,500,000
$2,000,000
$1,500,000
$1,000,000
$500,0001$20)1287$19,940
18,847
$_ _ $30,104 $26,847
q,Q'�a� N�a�e Qo�ea
e
Expenditures
FY14/15 Actual - FY18/19 Proposed
$2,940,509
$3,000,000 —
$2,5001000 ---
$2,000,000
$1,500,000
$1,000,000
$500,000 01287$191940
$18,847 $30,1(j�6,847
yhPo�, �oQ`�� P`��a Ja$e� area hea
t\ y 0 o
,y1\tip N �Q�oe
J
254
Utility Improvements - Fund Summary (Fund 580)
3200 Interest 3,440 31093 71412 i 2,000 13,257 10,000
- - - - - - - -- -
3978 Transfer from Water Sewer Fund 11720,340
3981 ',Transfer from Capital Development Fund 1,195,910 i
3994 Transfer from SSA #4 16,847 16,847 16,847 16,847 16,847 16 847
TOTAL REVENUES 20,287 19,940 21940,509 18,847 30,104 26,847
EXPENDITURES L
8500 Capital - Utility Improvement Projects
TOTAL EXPENDITURES _
_- NET INCREASE/(DECREASE) 20,287 19,940 21940,509 18,847 30,104 26,847
8,000 400400%
0.00%
0.00%
0.00%
8,000 42.45%
0.00%
Fiscal Year 2018/2019
Annual Budget
256
Marina Operations Fund - Overview
The City of McHenry acquired the marina in 2000 to be able to expand the
Central Wastewater Treatment Plant. After it was acquired it was determined
that the wastewater facility could not be expanded at the existed site. Once
the Central and South Wastewater Treatment Plant consolidation project is
completed, the Central WWTP site can be redeveloped and at this time it is
possible that the marina site be incorporated into any redevelopment. At this
time the Marina Operations Fund is an enterprise fund that provides for the
maintenance of a 60-slip marina on the Fox River.
Revenues
FY14/15 Actual - FY18/19 Proposed
W,000
$50,000 543
• 4,
$40,000
$30,000
$20,000
$10,000
a
'yhP�o OPG��a Pe��a� aa�e� area Sea
yy�\,yo,
ti
Expenditures
FY14/15 Actual - FY18/19 Proposed
$so,000 -I - <ae cano
,i$ $43,000
$40,000
$28 131 $28,591 28 434
$30,000
$20,000
$10,000
a �
vs�� a .:
A\ti5 \y�Q y1P g�Ja �`�a� °5e
�°9
F,
257
Marina Operations - Fund Summary (Fund 590)
3200 Interest
3845 Rental Income
TOTAL REVENUES
5110 Contractual Services
6940 Administrative Expenses
9930 Transfer to Water/Sewer Fund
TOTAL EXPENDITURES
NET INCREASE/(DECREASE)
455 223 394 200 394 200
55,275 43422 48,964 50,000 43,313 40 000
55,730 43,645 49,358 50,200 43)707 40,200
3,149 _11,033 _ 31405 20,000 2,217 15,000
- .-
_ 24,982 25,609_- 25,186 26,000 26,217 I 28,000
2 28,591 46,000
27,599 7,003 20,767 41200
28,434 43,000
15,273 (2,800)
(10,
000)
(10,000)
500
0
(3,000)
0.00%
-20.00%
-19.92%
28,434 43,000
15,273 (2,800)
(10,
000)
(10,000)
500
0
(3,000)
0.00%
-20.00%
-19.92%
Fiscal Year 2018/2019
Annual Budget
259
r�
Employee Insurance Fund - Overview
The City 0f McHenry recognizes that health insurance benefits are an important
component of an employee's total compensation package, therefore, the purpose
A the Employee Insurance Fund is to finance and account for expenditures
incurred to provide health insurance benefits to employees.
The current health insurance plan provided to employees offers a choice between
a PPO (Preferred Provider Organization), an HMO (Health Maintenance
Organization), and an HSA (Health Savings Account). Providing employees with
a choice of plans allows for flexibility based on preference and affordability. In
addition, employees receive dental and vision benefits. All IUOE 150 employees
(Public Works, Parks) are required to be on the IUOE 150 insurance plan as
bargaining agreement.
Revenues
FY14/15 Actual - FY18/19 Proposed
$3,493,712 $3,355,880 $3,424,22Z
$315001000 , "DI ,
$3,000,000
$2,500,000
$2,000,000
$1,500,000
$1,000,000
$500,000
,YOP �P� p°�J �a�a area ea
Q`OP
Q ��ti �yy1\tip yy�\tip,
Expenditures
FY14/15 Actual - FY18/19 Proposed
6
3,031,771 $3,377,8 t1 2841$L6' 429,222
$3,500,000 $Z,786,425
$3,000,000 89 zg4
$2,500,000
$2,000,000
$1,500,000
$1,00%000
$500,000
\tilb �5`��°P�y�a
Q F, �yti1 \yq, y�Q
F
261
per
their collective
N
rn
N
Insurance = Fund
3240
IL Funds Interest
3653
Elective Participant Premium
3831
Employee Contributions
3975
( Transfer from General Fund
3978
Transfer from Water/Sewer Fund
3999
Tranfer from Other Funds
TOTAL REVENUES
4310 Insurance Premiums -Health
4320 Insurance Premiums -Dental
4340 Insurance Premiums -Vision
5245 HealthHRAReimbursement
6960- ;Miscellaneous Expenses
TOTAL EXPENDITURES
NET INCREASE/(DECREASE)
Fund 600)
Actual Actual Actual Budget Estimated Proposed
i
_-1 3 42 - 116 - --- � - 0.00%
-- 9 -
141,253 145,716 __168 361 166,134 209,340 220,088 53,954 32,48%
201,385 211,017 229,332 280,029 246,124 263,336 (16,693) -5.96%
11845,456 2,011,166 2,170,114 2,576 349 21403 795 22397,915 (178,434) -6,93%
356,805 372,237 406,408 433,021 458,163 497,987 64,966 15.00%
30,290 24,868 26,161 38,179 38,342 44,896 61717 17.59%
21575,189 2,7651007 3,0001418 3,493,712 31355,880 3,4241222 (69)490) .1.99%
2,399,972 2 565 857 2,787,533 3,114,854 2,936 975 3,1�389 2,535 0.08%
80,227 110,039 112,682 1301934 119,323 120,894 (10,040) -7,67%
11,284 12,077 12 924 15,013 14,035 14,689 (324) -2.16%
93,391 95,236 115,569 112,000 213,793 171,250 5%250 52.90%
4,420 3,216 3,063 5,000 51000 - 0.00%
21589,294 21786,425 3,0311771 3,377,801 31284,126 31429,222 51,421 1.52%
(14,105) (21,418) (31,353) 115,911 71,754 (5,000)
Fiscal Year 2 018/2 019
Annual Budget
263
Risk Management Fund - Overview
The purpose of the Risk Management Fund is to account for all activity related to risk management
and insurance costs (other than employee health insurance) including loss control, loss prevention,
risk transfer, and risk assessment.
The City of McHenry is a member of the McHenry County Risk Management Agency (MCMRMA)I a
public entity risk pool through which property, general liability, automobile liability, crime, excess
property, excess liability, and boiler and machinery coverage is provided. The relationship between
the City and MCMRMA is defined through a contractual obligation approved by both the City Council
and MCMRMA Executive Board. Revenues for the fund are generated by service charges to the City's
General Fund and non -General Fund operating units. The service charges to the General Fund are
provided for the most part by the liability insurance portion of the property tax levy. Incidental
revenues from interest earnings and reimbursements from MCMRMA are also occasionally posted to
the fund.
Revenues
FY14/15 Actual — FY18/19 Proposed
$82o,aoo
$800,000
$780,000
'79
$760,000
$740,000 $735,36
$720,000 �7 Z,44
$700,000
$680,000
$660,000
FActual5 FY15/16 FY16/17 FY17/18
Actual Actual Budget EstimaFYI ted
FY18/19
g Estimated proposed
Expenditures
FY14/15 Actual - FY18/19 Proposed
$900,000 $697,809 ,
$800,000 27 942
$659,996 ,
$700,000
$600,000
$500,000
$400,000
$300,000
$200,000
$100,000
FActual5 FY15/16 FY16/17 Y17/18 F
Actual AFY17/18
Actual FY8/19
Budget Estimated
Proposed
Risk Management = Fund
3200 Interest Earnings
3847 MCMRMA Refund
3884 Reimb PropertyDamage _
3885 Property Damage Reimbursements
3970 Charges for Services
3975 Transfer from General Fund
3978 Transfer from Water/Sewer Fund
Transfer from IT Fund (need new acct #)_
3890 Misc. Income
TOTAL REVENUES
5950Insurance Premium - MCMRM,
N 5960', Insurance Premium -Other
(o" 5980!PropertyDamage
6940;Administrative Expense
r--- - --
L960Misc. Expense
9921' Purchase of Service - GF
TOTAL EXPENDITURES
NET INCREASE/(DECREASE)
61
68
j_ 207
316 200
1648
_ 11000
----
61,081�
411589
36,754
-- -- ----
30,000 22,506 30,000
54
1,014
-
-
698,291 698,291 698,291
747,800
747,800
698,292
h
809,003
i
790,610
735,362
728,491
722,445
729,291
523j966
585,072
628,522
650,000
( 675,982
731,141
35,311
29,962
28,303
2,500
18,403
20,000
45,317
22,398
18,426
50,000
9,600
50,000
549
21479
2,172
4,250
2,015
3,000
500
20,085
20,085
20,386
21,210
20,692
20,692
626,228
659,996
697,809
727,942
7267692
825,351
1821775
130,614
37,553
549
(4,247)
(96,060)
800 400,00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
800 0.11%
81,141
12.48%
17,500
700,00%
0.00%
(1,250)
-29,41%
(500)
-100,00%
518
2.50%
97,409
13.38%
Fiscal Year 2018/2019
Annual Budget
Information
266
Information Technology Fund - Overview
Mission
The mission of the Information Technology Division is to provide the
most innovate, highest quality, technology -based services in a cost-
effective manner and to facilitate the achievement of the goals and
objectives of each of the City's operating departments.
Information Technology Fund revenues are derived from transfers
from the City's operating departments and expenses are related to
the direct provision of technology services by the Division's two staff
members and for the replacement of equipment and software
through the municipality.
The primary functions of IT staff include:
• Providing efficient technology support for computer systems, web -based applications, voice,
video, and integrated data services to all City departments.
• Promoting and facilitating the integration of technology to efficiently meet the overall
mission of the City using collaborative efforts through planning, training, and consulting with
all departments and service providers.
• Developing, enhancing and managing the City's networks to provide high-speed transparent,
and highly functional connectivity.
• Developing and maintaining highly effective, reliable, secure, and innovative information
systems to support each department's functions.
• Facilitating the collection, storage, security, and integrity of electronic data while ensuring
appropriate access.
• Promoting new uses of technology within the organization.
267
Information Technology - Organizational Chart
268
Information Technology - Expenditure Summary
Total Expenditures
FY14/15 Actual - FY18/19 Proposed
$700,000
$6341256
$600,000
$536,087 $547,491
$500,000 $438,926
9,632 $435,741
$400,000
$300,000
$200,000
$100, 000 1
FY14/15 FY15/16 FY16/17Actual FY17/18
Actual Actual FY17/18 FY18/19
Budget Estimated
Proposed
269
Information T
- Fund Summ
nd 620
M
3200 '.Interest Earnings
3970 'Charges for Services
3975 Transfer from General Fund
3978_ ',Transfer from Water/Sewer Fund
TOTAL REVENUES
4010 Salaries
4310
Health Insurance
4320
Dental Insurance
4330
:'Life Insurance
4340
;Vision Insurance
4410
FICA Medicare
4420 jIMRF Retirement
TOTAL SALARIES/BENEFITS
5110 (Contractual_
5320 ,Telephone
5410 ',Dues
5420 _ :Travel Expense
5430 Training
TOTAL CONTRACTUAL SERVICES
6110 Materials and SuI
6210 �OfficeSupplies
6270 'Small Equipment
TOTAL SUPPLIES
57 53 92 - 100
427,597 i_461,101 515,787 536,087 536,087 634,255
427,654 461,154 515,879 536,087 536,187 634,255
_156,567_ 163,368 122,953 131,899 129,235 136,318
29,513 _23,352-1 24,86_0 35,158_ 32,879_'35,489
1,250 977 _11227 1,420 1,362 1,422
-- -
80 82
- - -
__ 108__105 74 -_-- 75 77 _83-
-- --
11,170 12,929 9,169 10,090 -- ___%561- 10,428
20,350 35,118 18,339 16,857 16,494 17 040
218,958 235,849 176,622 195,579 18%608 2007862
__ _ ___8.6,120 108,603 � 135,064 171,732 134,851 ' 161,075
2,731 2 903 989 5,220 889 85,412
I�
500 -. 250 450- 300
- 430� _ 696 } 1,300_ 1,706 1,500
163 7.550 51900 4,935 6,000
89014� 112,436 144,799 184,402 142,831 254,287
19,862 5,236 13,947 __.__39,549_! 88,777 42,550_
-- -_
_ 11,512 16,163 ._ 13,060 _ 14,100 !I 20,744 30,100
231648 23,506 38,766 45,600 55,320 59 600
55,022 44,905 65,773 99,249 164,841 132,250
0,00%
98,168 18,31%
0,00%
0,00%
98,168 18,31%
4,419
331
2
2
8
338
183
5,283
(10,657)
80,192
50
200
100
69,885
3,001
16,000
14,000
33,001
3.35%
0.94%
0.14%
2.50%
10.67%
3.35%
1.09%
2.70%
1536.25%
20.00%
15.38%
1.69%
37.90%
7.59%
113.48%
30.70%
33.25°/a
9510 Depreciation 38,293 37,391 41,139 50,000 43,354 ! 40,000 (10)000)-20.000/c
9920 Purchase of Services - Risk Management 8,345 87345 7,408 61857 6 857 6 857 0.00O/C
TOTAL OTHER 46,638 45,736 481547 561857 50,211 46,857
TOTAL EXPENDITURES 409,632 438,926 435,741 536,087 547,491 634,256 98,169 18.31O/c
NET INCREASE/(DECREASE) 18,022 22,228 80,138 (111304) Cl)
N
V
Fiscal Year 2018/2019
Annual Budget
Fiduciary Funds
272
Fiscal Year 2018/2019
Annual Budget
273
Employee Flexible Spending Fund - Overview
The Employee Flexible spendind account is used to account for
employee pre-tax medical spending accounts that are offered
as a benefit to City employees.
Under the Internal Revenue Service (IRS) rules and
regulations, employees can set aside money for certain
medical benefits on a pre-tax basis. These benefits include
medical expenses not covered under the employee's health
insurance plan. When allowable medical costs are paid by the
employee, he or she can get reimbursed from his flexible spending account. Depending on the tax
bracket of the employee and the extent of utilization, an employee could potentially save several
hundred dollars through medical and dependent care flexible spending deductions.
Revenues
FY14/15 Actual - FY18/19 Proposed
$109,721 onn
$120,000 $91,021 $101,360
$100,000
$80,000
$60,000 $60,000
$40,000
$20,000
o a �
yh �P P oa a'` 5e
Expenditures
FY14/15 Actual - FY18/19 Proposed
$109,721 $los,000
$120,000 S$9T23 $91,021 '
$100,000
$80,000
$60,000
$60,000
$40,000 —
$20,000
$-
oa a�
hPe� P°�J P`��a aa°oa� area Sea
(0\r� 09°
F,
274
Flex - Fund
3831 Employee Contributions
TOTAL REVENUES
6940 AdministrativeExpenses
6965 iMedicalReimbursements
9999 Revenue/Expense Closing
TOTAL EXPENDITURES
NET INCREASE/(DECREASE)
N
V
on
700
8%232 91,021 109,721 105,000 101360 60)000. (45,000)-42,86%
8%232 91,021 109,721 105,000 101,360 60,000 (45,000)-42.86%
4,106 31725 31944 51000 4L379 4,000 (1,000)-20,00%
84,679 86,504 111,100 100,000 49,424 56,000 (44)000)-44.00%
447 792 (5,323) 47,557 - Mo%
89,232 91,021 109,721 105,000 101,360 %000 (45,000)-42486%
f��
Development Escrow Fund - Overview
The Development Escrow Fund is a fiduciary fund used to account for assets
held by the City in a trustee capacity or as an agent for individuals, private
organizations, other governments or funds. The Development Escrow Fund
holds funds deposited by developers until such time as certain improvements
are completed or in lieu of developer provided improvements. These funds
are custodial in nature and do not involve measurement of results of
operations. In FY18/19 Development Escrow Funds are being used for the
manufacture and installation of a new municipal gateway sign on east Route
120 as part of the Ricky Rockets development project.
f�1R�[4T�
FY14/15 Actual - FY18/19 Proposed
$351000 $33,000
$30,000 B5B
$$25,000
25,000
$20,000
$15,000
$100000
$5,000
$- $17
$(5,000)
c�P �P P° Ja°0 aye ye
�\y�o
Expenditures
FY14/15 Actual - FY18/19 Proposed
$35,000 $33 000
$30,000 00
$25,000
$20,000
$15,000
$10,000 $3
$5,000
$-
$(5,000)
y�P 1Po �JaaO �a`e o5a
�,ya�, ytiy(0�0, ti 1�ti�5`� Q�0
cbNP
277
Devel
Escrow - Fund Summary (Fund 72
3210 Interest Earnings 338
3760 Received from Developers 32,662
TOTAL REVENUES 33,000
EXPENDITURES
6961Miscellaneous Refunds
9942 Transfer to Capital Improvements Fund _
9999 (Revenue/Expense Closing 33,000
TOTAL EXPENDITURES 33,000
NET INCREASE/(DECREASE)
- 257000 25,000 0.00%
(56) 3 25,050 17 25,000 (50) -0.20%
0.00%
k�25,000 25,000 0400%
3 0.00%
(5 5) 3 25,000 25,000 0.00%
50 17
Fiscal Year 2 018/2 019
Annual Budget
279
Retained Personnel Fund - Overview
The Retained Personnel Fund is used to account for funds
collected as reimbursement and expended for professional
and technical services used to assist or advise the City in
connection with land development. The City's retained
personnel costs included engineering, legal, planning, and
other technical professional matters. The City typically
collects a deposit from property owners at the initiation of
annexation, zoning, or other development proceedings that
approximate the total retained personnel costs expected to be
incurred.
Revenues
FY14/15 Actual - FY18/19 Proposed
$110,335
$120,000
$100,000 &Sl
05000 ,
$80,000 5000
$60,000
$40,000
$20,000
a�
hP°�J & %Zp ai pow ea a
P 0a °e
y P O a y
�\y yti�\tip ���
Expenditures
FY14/15 Actual - FY18/19 Proposed
$110,335
$120,000
$100,000 $62,509
$80,000 OF)
$73,5� 43 $75 000
$60,000
$40,000
$20,000
$-
oa a�
°
P`��a Japoe� a,�ea yea
<<A
280
N
N
Retained Personnel - Fund Summary (Fund 7401
REVENUES-
3730 Engineering Fees 52,413 78,012 42,121 50,000 53,380 50,000
-- - -
3735
Le al Fees 29,473 25,188 _ -_ 13,888 15,000 8,257 15,000
3740 Developer Miscellaneous Fees - -
g
P- _ 6,426 7135 -_ 6,500 8,000 3,000 8,000
3750 Developer Refunds 500 - 2,000 8,906 2,000
TOTAL REVENUES 88,812 110,335 621509 75,000 731543 751000
EXPENDITURES
5220 Engineering Fees 52,413 77,081 47,211 50,000 53,380 50,000
5230 Legal Fees 29,473 26,130 13,888 15,000 8257 15,000
6960 Miscellaneous Fees 619261 7,124 1 6,500 8,000 3,000 8,000
6961 Miscellaneous Refunds - MOW) 2,000 8,906 2000
TOTAL EXPENDITURES 88,812 110,33S 62,509 75,000 73,543 75,000
NET INCREASE/(DECREASE) -
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
Fiscal Year 2018/2019
Annual Budget
282
Revolving Loan Fund - Overview
The Revolving Loan Fund provides low interest loans to qualified existing
and prospective businesses within the City of McHenry. The loan
proceeds can be used to assist in the startup of a new business, expand
and existing business update existing facilities to make the business more
competitive, or provide an incentive for established businesses to
relocate to the City. The primary goal of the program is job creation and
expansion of the sales and property tax bases.
The program requires loan applicants to complete a formal application �/
which is then reviewed by the Revolving Loan Fund Committee -
comprised of the Mayor and Finance and Personnel Committee. Terms are identified/negotiated and
a recommendation is provided to the full City Council for consideration. Of note, the Revolving Loan
Fund itself does not have expenditures as the loans are originated through the City's identified lender.
Revenues are comprised of receivables, or payments, which are budgeted.
Revenues
FY14/15 Actual - FY18/19 Proposed
$3,000
,540
$2,500
$2,050
$2,000 $1,497
$1,405 $1,650
$1,500
$1,000
$500
a �
eIN
�yti pkc
\Y
ti
283
Revolving Loan = Fund Summary ffund 75
REVENUES
50 166 150
Interest Earnings — 17 11 - 11 — -
3210 100 200400%
3210 Loan Interest 21523 1,486 1,394 2,000 1 180 1 500 (500) 25.00%
TOTAL REVENUES 2,540 1,497 1,405 21050 1,346 1,650 °
EXPENDITURES
-
5110 -,Contractual Services 100
TOTAL EXPENDITURES 100 0.00%
NET INCREASE/(DECREASE) 2,540 11497 11405 2,050 11246 1,650
Fiscal Year 2018/2019
Annual Budget
285
Police Pension Fund - Overview
The Police Pension Fund accounts for retirement benefits for retired police officers
and their beneficiaries through employer and employee contributions and
investment earnings.
The primary purpose of this non -operating budgetary unit is to finance pensions
for employees by both employer and employee contributions combined with
interest earnings on those contributions. These three revenue streams, if based on
sound actuarial assumptions should generate sufficient funds for employee retirement without
placing undue burden on the employer or a risk to the pension due the employee.
The Police Pension plan is administered by a board of trustees. The duties of the board are to control
and manage the pension fund, to enforce the collection of contributions, to hear and determine
applications for pensions, to authorize payment of pensions, and to invest funds. Account and
actuarial services are provided by the city at no cost to the plan. Financial planning and investment
management are provided by outside vendors.
The City's pension plan is a defined benefit plan meaning that regardless of investment performance,
the plan is obligated to pay the defined benefit. If the pension plan makes unwise investment
decisions, the City is currently obligated to guarantee the obligations. However, as of the year 2033,
the pension plan will be self-supporting with no further obligations placed on the City.
The City utilizes an independent actuarial study to annually determine the necessary funding for the
pension program. The City Council has committed to funding the plan based upon these
recommendations.
Revenues
FY14/15 Actual - FY18/19 Proposed
$4,500,000
$4,000,000
$31500,000
$31000,000
$21500,000
$2,000,000
$1,500,000
$1,000,000
$500,000
spy �,yg\
F
Expenditures
FY14/15 Actual - FY18/19 Proposed
$2,097,127
$211001000
$2,050,000 $2,011,404 $2,0501367
$2,000,000
$1,950,000 05,601
$1,900,000
$1,850,000
$1,800,000
�Ja�e aYN: °'tea
p 'c� °q
F
287
Police Pension - Fund
3210 j Interest Earnings
3830 Employer Contributions
3831 Employee Contributions
3836 Gain/Loss on Sale
3837 Unrealized Gain/Loss
3882 Miscellaneous Reimbursement
TOTAL REVENUES
4910 Pension Payments
4920 Duty Disability Payments
4930 Survivor Benefit Payments
4940 Non -Duty Disability Payments
4990 Contribution Refunds
5110 Contractual Services
5410 Dues
9923 Purchase of Service - Audit
TOTAL EXPENDITURES
NET INCREASE/(DECREASE)
1,295,101 1,386,205 809,529 950,000 10�,7 950,000
1,13505 97%S15 1,521,914 1,874219 1i 1,868,798 2,019,703
381,363 I'513,111 397,515 410 000 --_ 409,541 430,000
1�52 069)', 74 996 42,906) �(35306.1
118,330 1,1121524) 11275,071 - 957,504
50
2,778,380 11691,311 31961,123 31234,219 41224,296 31399,703
' I I
1,425,485 1 L380;578 1,374,052 1,460,291 1,471,760 1,554,165
225,749 2281485 _ 231,214 238,586 238,586 251,066
87,495 173,824 252,244 244,390 184,056 176,924
17,511 17,512 17,512 17,512 17,512 17,512
112,515 246,347 15,910 _ - 1
321146 45,681 34,803 45,000 42,289 45,000
11275 _ _1,200 _ 2,790 2,000 11595 2,0005
3,425 3,500 3,570 3,625 3,623,700
1,905,601 2,097,127 11932,095 2,011,404 1,959,423 21050,367
872,779 (405,816) 2102%028 11222,815 2,264,873 1,349,336
145,484
20,000
165,484
93,874
12,480
(67,466)
75
38,963
0.00%
7.76%
4.88%
0.00%
0.00%
0.00%
5.12%
6.43
5.23%
-27.61%
0.00%
0.00%
0.00%
0.00%
2.07%
1.94%
f a ---.
�— s � -'
l [:
Financial Policies Overview
The following City financial policies, along with the approved Fund Balance and Reserve, Investment
and Capital Improvement Program policies, establish the framework for McHenry's overall fiscal
planning and management.
Operating Budget and Expense Policies
1. The City shall annually adopt a balanced budget where operating revenues are equal to, or
exceed, operating expenditures in each fund.
2. Beginning fund balance should only be appropriated to the extent it supports non -recurring
expenditures, replaces temporary declines in revenue, or is reasonably anticipated to be offset
by an increase in revenue.
3. As part of the annual budget review process, the City will project General Fund revenues and
expenditures for four years beyond the budget year and compare the projected balances to the
fund balance policy. This will allow the City to identify potential problems early enough to correct
them.
4. The City Council shall be provided monthly actual revenues and expenditures for all funds. Any
departments or divisions projected to exceed their annual spending authority for the year shall
work with the City Administrator to reduce expenses. This may include a deferral of hiring and
major expenses for goods and services.
Revenue Policies
1. The City shall maintain a diversified and stable revenue system to the extent provided by law to
insulate it from short-term fluctuations in any one revenue source.
2. The City will not budget one-time revenue sources to fund annual operating expenditures. Such
revenues will fund non -recurring activities, such as capital projects and major capital equipment
purchases.
3. Grant revenues shall be pursued to provide or enhance City services. However, recurring
activities shall be initiated with grant funds only if the activity can be terminated in the event
grant funds are discontinued or the activity should and can be funded within recurring City
revenues.
4. All non -enterprise user fees and charges will be examined annually to determine the direct and
indirect cost of service recovery rate. The acceptable recovery rate and any associated changes
to user fees and charges will be approved by the City Council.
5. The City will set fees and user charges for the Water and Sewer funds at a level that fully supports
the total direct and indirect costs of the activity. Indirect costs include the replacement of the
capital assets of the fund.
290
Debt Management Policies
1. The City limits long-term debt to only those capital improvements that cannot be financed from
current revenues and have an estimated useful life of at least ten years.
2. For General Obligation Debt, the City will maintain a debt to assessed valuation ratio that is 25%
more stringent than the state debt limit.
f�.L•SI
Fund Balance and Reserve Policy
Overview
• The purpose of this policy is to establish the principles and parameters to which a Fund
Balance target will be defined at the beginning of each budget period. This policy is
established to provide financial stability, cash flow for operations, and the assurance that the
City will be able to respond to emergencies with fiscal strength.
• In the event that unexpected situations may cause the City to fall below the minimum fund
balance level, certain steps will be followed to correct the deficiency, as outlined in the section
below titled "Fund Balance Parameters."
Definitions
• Fund Balance -The difference between assets and liabilities in a Governmental Fund.
• Net Position -The amount remaining after subtracting total liabilities from total assets for
Proprietary Funds.
• Operating Expenditures -Total expenditures minus capital and debt service.
• Governmental Funds -Are used to account for all or most of the City's general activities,
including the collection and disbursement of restricted or committed monies (special
revenue funds), the funds restricted, committed or assigned for the acquisition or
construction of major capital assets (capital projects fund), and the funds restricted,
committed or assigned for the servicing of general long-term debt (debt service funds). The
general fund is used to account for all activities of the general government not accounted for
in some other fund.
o General Fund -Accounts for all activities of the City not accounted for in another
fund. The General Corporate Fund is used to account for most of the day-to-day
operations of the City, which are financed from tax revenues and other general
revenues. Nine (9) separate activities are accounted for within the General Fund
including: Administration, Elected Officials, Community & Economic Development,
Finance Department, Police Commission, Police Department, Public Works -
Administration, Public Works -Streets, and Parks and Recreation.
o Special Revenue Funds -These funds are utilized to account for revenues derived
from specific sources which are usually required by law or regulation to be accounted
for as separate funds. For the City of McHenry these funds include the following
funds, with definitions provided:
■ Tourism Fund -The Tourism Fund is used for the purpose of financing
tourism through promotion of the City. It is derived from a 5%occupancy tax
on motel and hotel receipts.
292
■ Pageant Fund - The purpose of the Pageant Fund is to account for revenues
and expenditures used to conduct the annual Miss McHenry Pageant.
■ Band Fund - The purpose of the Band Fund is to finance and account for
expenditures incurred in the provision of summer concerts to promote
culture and recreation to the community.
■ Civil Defense Fund -The City Defense Fund is used to fund and account for
activities related to the training of personnel and the purchase and
maintenance of equipment to protect and defend the City from natural
disasters or man-made environmental disasters through early warning and
public notification systems.
■ Alarm Board Fund -The purpose of this fund is to pay for the maintenance
of radios, as well as the annual maintenance of the head -end equipment, in
the City's dispatch center. Revenues are derived from the monitoring of
business fire alarms, which are directly connected to the dispatch center.
■ Audit Fund -The Audit Fund accounts for expenses incurred to complete the
annual financial audit of the City.
■ Annexation Fund -This fund tracks funds received from negotiated
annexation agreements that are intended to be used for improvements to
infrastructure or City facilities.
■ Motor Fuel Tax Fund -The Motor Fuel Tax (MFT) Fund is to provide
dedicated revenues from taxes on gasoline and diesel sales primarily to road
maintenance and improvements.
■ Developer Donation Fund -The purpose of this fund is to account for
donations collected from developers on behalf of the primary and secondary
school districts, fire protection district, and the City's park system.
■ Tax Increment Finance Fund -The Tax Increment TN (TIF) Fund is
utilized to capture the tax increment on property taxes generated through
private investment within the downtown TIF District. These funds are then
reinvested into this area to undertake public improvements and/or as
incentivization to spur additional private investment.
o Capital Projects Fund -Capital Projects Fund is utilized to account for financial
resources to be used for the acquisition or construction of capital facilities or other
major fixed assets. The following funds are identified within the Capital Projects
Fund:
■ Recreation Center Construction Fund -The purpose of this fund is to, first,
account for revenues and expenditures related to the construction of the
recreation center facility; and, second, to account for capital expenditures
specific to the completed recreation center facility.
■ Special Service Area #4A - The SSA#4 Fund is utilized to account for
revenues and expenses associated with annual debt service for the sewer
project located in the Lakewood Road Subdivision.
■ Capital Improvements Fund - The purpose of the Capital Improvements
Fund is to account for funds identified for the maintenance and construction
of public infrastructure projects other than water and sewer utties. This
includes roads and public facility maintenance, improvements and/or
construction.
■ Capital Equipment Fund -The Capital Equipment Fund is utilized to track
annual expenditures of equipment replacement (e.g., vehicles, computer
equipment) as identified in the S-Year Capital Improvement Program.
o Debt Service Fund -The Debt Service Fund accounts for bonded indebtedness
incurred by the City 's General Fund, including bond and interest payments.
• Enterprise Funds -Enterprise Funds are business -type funds utilized to account for
operations and activities that are financed and operated in a manner similar to a private
business enterprise, and where the cost of providing goods and services to the general public
on a continuing basis is expected to be recovered primarily through user charges. The City
has also established Enterprise Funds when it was advantageous to segregate revenues
earned and expenses incurred for an operation for purposes of capital maintenance, public
policy, management control, or accountability. The following funds comprise the City's
Enterprise Funds:
o Water and Sewer Fund -The Water and Sewer Fund funds the operations of the
Water, Wastewater and Utility Division of the Department of Public Works who's
functions are to provide a safe and reliable supply of high quality potable water and
to protect public health and the environment by treating sewage to meet stringent
environmental standards prior to discharge.
o Capital Development Fund -This fund accounts for the construction, expansion
and/or extension of water and wastewater systems to accommodate new
development and growth in the community. Revenues are generated through capital
development fees on new residential and non-residential development.
o Utility Improvements Fund -The Utility Improvements Fund is utilized for capital
projects that improve or expand the capacity of the Water and Wastewater utilities.
o Marina Operations Fund -This Enterprise Fund is used to maintain acity-owned
60-slip marina on the Fox River.
• Internal Service Funds -Internal Service Funds are established to finance and account for
services and/or commodities furnished by one department or agency to other departments
or agencies of the city. The Internal Service Funds of the City are as follows:
o Employee Insurance Fund -The purpose of this fund is to finance and account for
expenditures incurred to provide health insurance benefits to employees.
294
o Risk Management Fund - The Risk Management Fund accounts for all activity
related to risk management and insurance costs (other than employee health
insurance) including loss control, loss prevention, risk transfer, and risk assessment.
o Information Technology Fund -The IT Fund facates the implementation of
innovative, high quality technology -based services to each of the City's departments.
• Fiduciary Funds -These funds are used to account for resources held for the benefit of
parties outside of the city. The Fiduciary Funds of the city include the following funds:
o Employee Flexible Spending Fund -Accounts for employees' pre-tax medical
spending accounts that are offered as a benefit to City employees.
o Development Escrow Fund -This fund is used to segregate developer funds held by
the City to ensure the completion of specific public improvements such as sidewalks
and traffic signals.
o Retained Personnel Fund -The Retained Personnel Fund accounts for funds
collected as reimbursement and expended for professional and technical services
used to assist or advise the City in connection with land development.
o Revolving Loan Fund -This fund accounts for activity in the Revolving Loan
Program, a low -interest program for businesses and industry with the goal of job
creation.
o Police Pension Fund -Accounts for retirement benefits for retired police officers
and their beneficiaries through employer and employee contributions and
investment earnings.
Governmental Fund EquitX
• With the implementation of GASB 54, the fund balance structure for governmental funds
changed as of the fiscal year ended April 30, 2012. Multiple fund balance classifications
include: Non -Spendable, Restricted, and Unrestricted, with unrestricted being further
broken down into: Committed, Assigned, and Unassigned.
• Expenses that can be attained from multiple fund classifications shall be used from the most
to least restrictive fund. With the discretion of the Finance Director, and with the advice and
consent of the Finance and Personnel Committee, a deviation can be made from this policy if
it is in the best interest of the City of McHenry.
• Fund classifications are described by the following:
o Non -Spendable Fund Balance - (1 of 2 conditions)
■ Amounts that are not in spendable form
➢ Can never be spent (i.e., Inventory, Prepaid Rent)
➢ Cannot currently be spent because of cash flow timing (i.e., Long -Term
Receivables)
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■ Amounts that are required to be maintained intact (i.e., principal of an
endowment)
o Restricted
■ Externally enforceable legal restrictions (i.e., grants, debt proceeds, tax levies)
o Unrestricted (3 designations)
■ Committed -Amounts constrained for a specific purpose by a government
using its highest level of decision -making authority
➢ Must be committed prior to fiscal year-end, however, dollar amount
can be decided at a later time.
➢ Revenues reported within any given special revenue fund are
considered "Committed" by the City Council in accordance with GASB
Statement 54 and are intended to be used for the related purpose.
■ Assigned - Amounts constrained, for the intent to be used for a specific
purpose by the City Administrator and Finance Director
➢ Includes any remaining positive balances in governmental funds
(other than the General Fund) that is not classified in any other fund
balance category
➢ A drawdown of the fund balance would be classified within this
category
■ Unassigned - Remainder of the General Fund's fund balance that is not
classified in a previous category and amounts have not been expended in
excess of resources available in other governmental funds
Proprietary (Enterprise/Internal Service) Fund Equity
• Proprietary funds include Enterprise and Internal Service Funds.
• Expenses that can be attained from multiple fund classifications shall be used from the most
to least restrictive fund. With the discretion of the Finance Director, and with the advice and
consent of the Finance and Personnel Committee, a lesser restrictive net asset classification
can be used if they determine that it is in the best interest of the City.
• The net assets will be composed of three primary categories:
o Net Investment in Capital Assets -That portion of a proprietary fund's net assets
that reflects the fund's net investment in capital assets less any amount of outstanding
debt related to the purchase/acquisition of said capital assets.
■ Related debt, for this purpose, includes the outstanding balances of any
bonds, mortgages, notes, or other borrowings that are attributable to the
acquisition, construction, or improvement of capital assets of the
Government.
o Restricted Net Assets -That portion of a proprietary fund's net assets that are
subject to external enforceable legal restrictions (e.g., grantor, contributor and bond
covenants).
o Unrestricted Net Assets That portion of a proprietary fund's net assets that is
neither restricted nor invested in capital assets (net of related debt).
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Fund Balance Parameters (Bv Fundl
• It is the City's philosophy to support long-term financial strategies, where fiscal SUS tainability
is it first priority, while also building funds for future growth. It is essential to maintain
adequate levels of fund balance to mitigate current and future risks and to ensure stable tax
levies. Credit rating agencies carefully monitor levels of fund balance to evaluate a City's
credit worthiness.
• Revenues received within a given fund are specifically committed for its related purpose.
Revenues reported within any fund may be modified from time to time through the annual
budget process.
• The following parameters will be used as part of the budget process to establish targets for
the following funds:
o General Fund -The unrestricted fund balance target should be set at 120 days (4
months) of estimated operating expenditures including those expenditures reported
in other Governmental Funds that receive annual operating transfers, with the
exception of transfers intended to fund capital projects. If the unreserved fund
balance falls below 120 days, a plan will be developed to return to the target balance.
If the unreserved fund balance reaches a low of 90 days (3 months), the plan will be
implemented to return the fund balance to the target within a reasonable amount of
time. One-time revenues shall not be used to fund current operations.
This level of fund balance shall provide the capacity to:
■ Offset unexpected downturns in elastic revenues due to fluctuations in the
local, state and national economies or the loss of a major sales tax
contributor(s);
■ Offset negative fiscal changes brought about by action or legislation of
another unit of government or agency;
■ Ensure the continued, timely repayment of debt obligations that the City may
have in the event of a financial downturn;
■ Provide a sufficient cash flow for daily financial needs at all times; and,
■ Provide a funding source for unanticipated expenditures or emergencies that
may occur.
Funds in excess of the minimum may be
nonrecurring expenditures, assigned for
funding of other long-term obligations.
considered for the funding of one-time,
future capital activities or used for the
o Tourism Fund - No target is established for this fund. The expenditures in this fund
are to be used for financing tourism through promotion of the City.
o Pageant Fund - No target is established for this fund.
o Band Fund - No target is established for this fund. There is an estimated yearly
operating transfer provided by the General Fund to cover expenses.
o Civil Defense Fund - The unrestricted fund balance should be maintained at 120
days (4 months) of estimated operating expenditures. Additional fund balance needs
to be retained to address long-term equipment replacement and or repair.
o Alarm Board Fund -The unrestricted fund balance should be maintained at 120
days (4 months) of estimated operating expenditures. Additional fund balance needs
to be retained to address long-term equipment replacement.
o Audit Fund - No target is established for this fund. Any fund balance accumulated
within this fund will be utilized to lower operating transfers from other funds or the
property tax levy.
o Annexation Fund -The unrestricted fund balance should be maintained at sufficient
levels to address the related annual debt service payments pledged by this fund and
additional funding for capital projects.
o Motor Fuel Tax Fund - No target is established for this fund. The expenditures
intended for the Motor Fuel Tax revenues must not exceed the amount of funds
available from the State of Illinois Motor Fuel Tax Fund. These revenues should only
be used for street improvements and repair, as allowed by the State of Illinois Law.
o Developer Donation Fund -The unrestricted fund balance should be maintained at
sufficient levels to fund park related capital projects.
o Tax Increment Finance Fund - No target is established for this fund. All fund
balance within this fund will go to pay for improvements completed within the TIF
district.
o Recreation Center Construction Fund -The unrestricted fund balance should be
maintained at 120 days (4 months) of estimated operating expenditures. Additional
fund balance needs to be retained to address long-term equipment/furniture
replacement or other unforeseen capital needs.
o Special Service Area 4-F4 (SSA4+4) - No fund balance is maintained in this fund, all
revenues are transferred to the Utility Improvements Fund to cover project costs.
o Capital Improvements Fund - No target is established for this fund. The
expenditures in this fund are to be used for retiring debt service and for capital
infrastructure expenditures. One-time revenues should be placed in this fund.
However, the City will plan appropriately and maintain a sufficient reserve in order
to meet the long-term capital planning, projected cash flow requirements, and
infrastructure needs of the community.
o Capital Equipment Fund - No target is established for this fund. The expenditures
in this fund are to be used for capital equipment expenditures.
o Debt Service Fund - No target is established for this fund. This fund is used only as
a debt service fund.
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o Water and Sewer Fund - The Water and Sewer Fund cash and investment balance
should be maintained at a minimum level of 25%-35% of the previous year's
operating expenses taking into account typical levels of expenditures required for
capital outlays. Rates should be maintained at sufficient levels to meet the costs of
water and sewer programs, fund depreciation, and build reserves for future capital
needs. Water rates for consumers will be reviewed on an annual basis based on
operating and capital needs. If the balances fall below the minimum, rates will be
adjusted so as to gradually return to the minimum within a reasonable period of time.
If balances exceed the minimum, the overage will be used to keep future rate
increases lower or fund capital projects for the water/sewer systems.
o Capital Development Fund - No target is established for this fund. The
expenditures in this fund are to be used for retiring debt service and for capital
expenditures.
o Utility Improvements Fund - No target is established for this fund. The
expenditures in this fund are to be used for capital infrastructure expenditures. One-
time revenues should be placed in this fund. However, the City will plan
appropriately and maintain a sufficient reserve in order to meet the long-term capital
planning, projected cash flow requirements, and infrastructure needs of the
community.
o Marina Operations Fund - No target is established for this fund. All fund balance
within this fund will go to maintain the City owned marina.
o Employee Insurance Fund - No target is established for this fund. Any fund balance
accumulated within this fund will be utilized to provide stability for the City's health
I
nsurance costs.
o Risk Management Fund - No target is established for this fund. Any fund balance
accumulated wn this fund will be uzed to provide staty for the City's risk
management costs.
o Information Technology Fund - The unrestricted fund balance should be
maintained at 120 days (4 months) of estimated operating expenditures. Additional
fund balance needs to be retained to address capital expenditures.
o Employee Flexible Spending Fund - No fund balance is maintained within this fund.
This fund is used only as an agency fund.
o Development Escrow Fund - No fund balance is maintained within this fund. This
fund is used only as an agency fund.
o Retained Personnel Fund - No fund balance is maintained within this fund. This
fund is used only as an agency fund.
o Revolving Loan Fund - No target is established for this fund. Any fund balance
accumulated within this fund will be utilized to offer low interest loans to local
businesses.
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o Police Pension Fund - Fund balance targets will be determined through the Police
Pension Board and the annual actuarial analysis.
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Capital Improvement Program Financial Policy
1. The Capital Improvements Program (CIP) plan shall identify projects, their costs and the
revenue sources and amounts needed to finance them.
2. The first year of the CIP program effectively becomes the capital projects budget within the
operating budget for the year subject to the availability of adequate funds in the operating
budget. Approval of the CIP does not guarantee that funds will be appropriated for the
projects included in the first year of the CIP.
3. For General Obligation Debt, the City will maintain a debt to assessed value ratio that is 25%
more stringent than the state debt limit (State limit is 8.625% of EAV; proposed limit would
reduce to this ceiling to approximately 6.5% of EAV or $25.5 million outstanding).
4. Bonds issued to finance capital projects shall be structured to coincide as closely as feasibly
possible to the useful life of the project. By equitably distributing the costs of the project over
time, those citizens actually benefiting from the project will share in the cost. In no instance
shall the maturity exceed the useful life of the project.
5. The City will not use long-term debt for current operations.
6. Where feasible, the City shall investigate the use of all sources of revenue available before
using local property tax funds for capital projects.
7. Where feasible, the City will pursue project financing mechanisms -such as special service
areas, special assessments or other mechanisms - that target citizens receiving a
disproportionate share of the project benefit.
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Investment Policy
I. Policy
It is the policy of the City of McHenry to invest public funds in a manner which will provide
the highest investment return with the maximum security while meeting the daily cash flow
demands of the City and conforming to all state and local statutes governing the investment
of public funds.
II. Scope
This policy includes all funds governed by the Mayor and Council ("City Council").
III. General Objectives
The primary objectives, in priority order, of investment activities shall be safety, liquidity,
and yield:
A. Safety. Safety of principal is the foremost objective of the investment program.
Investments shall be undertaken in a manner that seeks to ensure the preservation
of capital in the overall portfolio. The objective will be to mitigate credit risk and
interest rate risk.
1. Credit Risk. The City will minimize credit risk, the risk of loss due to the
failure of the security issuer or backer, by:
(a) Limiting investments to the safest types of securities.
(b) Pre -qualifying the financial institutions, brokers/dealers,
intermediaries, and advisers with which the City will do business.
(c) Diversifying the investment portfolio so that potential losses on
individual securities will be minimized.
2. Interest Rate Risk. The City will minimize the risk that the market value of
securities in the portfolio will fall due to changes in general interest rates, by:
(a) Structuring the investment portfolio so that securities mature to meet
cash requirements for ongoing operations, thereby avoiding the need
to sell securities on the open market prior to maturity.
(b) Investing operating funds primarily in shorter -term securities, money
market mutual funds, or similar investment pools.
B. Liquidity. The investment portfolio shall remain sufficiently liquid to meet all
operating requirements that may be reasonably anticipated. This is accomplished by
structuring the portfolio so that securities mature concurrent with cash needs to meet
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anticipated demands (static liquidity). Furthermore, since all possible cash demands
cannot be anticipated, the portfolio should consist largely of securities with active
secondary or resale markets (dynamic liquidity). A portion of the portfolio also may
be placed in money market mutual funds or local government investment pools which
offer same -day liquidity for short-term funds.
C. Yield. The investment portfolio shall be designed with the objective of attaining a
market rate of return throughout budgetary and economic cycles, taking into account
the investment constraints and liquidity needs. Return on investment is of secondary
importance compared to the safety and liquidity objectives described above. The core
of investments are limited to relatively low risk securities as identified in this policy
in anticipation of earning a fair return relative to the risk being assumed. Securities
shall not be sold prior to maturity with the following exceptions:
1. A security with declining credit may be sold early to minimize loss of
principal.
2. A security swap would improve the quality, yield, or target duration in the
portfolio.
3. Liquidity needs of the portfolio require that the security be sold.
IV. Prudence
The standard of prudence to be used by investment officials shall be the "prudent person"
standard and shall be applied in the context of managing an overall portfolio. Investment
officers acting in accordance with written procedures and this investment policy and
exercising due diligence shall be relieved of personal responsibility for an individual
security's credit risk or market price changes, provided deviations from expectations are
reported in a timely fashion and the liquidity and the sale of the securities are carried out in
accordance with the terms of this policy.
Investments shall be made with judgment and care, under circumstances then prevailing,
which persons of prudence, discretion and intelligence exercise in the management of their
own affairs, not for speculation, but for investment, considering the probable safety of their
capital as well as the probable income to be derived.
V. Ethics and Conflicts of Interest
Officers and employees involved in the investment process shall refrain from personal
business activity that could conflict with the proper execution and management of the
investment program, or that could impair their ability to make impartial decisions.
Employees and investment officials shall disclose any material interests in financial
institutions with which they conduct business. They shall further disclose any personal
financial/investment positions that could be related to the performance of the investment
portfolio. Employees and officers shall refrain from undertaking personal investment
transactions with the same individual with whom business is conducted on behalf of the City.
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VI. Delegation of Authority
Authority to manage the investment program is granted to the City Treasurer or his designee,
hereinafter referred to as Investment Officer. Responsibility for the operation of the
investment program is hereby delegated to the Investment Officer, who shall act in
accordance with established procedures and internal controls for the operation of the
investment program consistent with this investment policy. Procedures should include
references to: safekeeping, delivery vs. payment, investment accounting, repurchase
agreements, wire transfer agreements, and collateral/depository agreements. No person
may engage in an investment transaction except as provided under the terms of this policy
and the procedures established by the Investment Officer. The Investment Officer shall be
responsible for all transactions undertaken and shall establish a system of controls to
regulate the activities of subordinate officials.
VII. Authorized Financial Dealers and Institutions
A list will be maintained of financial institutions authorized to provide investment services.
In addition, a list also will be maintained of approved security broker/dealers selected by
creditworthiness (e.g., a minimum capital requirement of $10,000,000 and at least five years
of operation). These may include "primary" dealers or regional dealers that qualify under
Securities and Exchange Commission (SEC) Rule 1504 (uniform net capital rule).
All financial institutions and broker/dealers who desire to become qualified for investment
transactions must supply the following as appropriate:
A. Audited financial statements.
B. Proof of National Association of Securities Dealers (NASD) certification.
C. Proof of state registration.
D. Completed broker/dealer questionnaire.
E. Certification of having read and understood and agreeing to comply with the City's
investment policy.
An annual review of the financial condition and registration of qualified financial institutions
and broker/dealers will be conducted by the Investment Officer.
VIII. Suitable and Authorized Investments
The City may invest in any investment allowed for in the Illinois statutes regarding
investment of public funds including but not limited to the following:
A. U.S. government obligations, U.S. government agency obligations, and U.S.
government instrumentality obligations, which have a liquid market with a readily
determinable market value.
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B. Canadian government obligations (payable in local currency).
C. Certificates of deposit and other evidences of deposit at financial institutions,
bankers' acceptances, and commercial paper, rated in the highest tier (e.g., A4, P4,
F-1, or D4 or higher) by a nationally recognized rating agency.
D. Investment -grade obligations of state, provincial and local governments and public
authorities.
E. Repurchase agreements only if the underlying purchased securities consist of
government securities which are subject to the Government Securities Act of 1986 or
as authorized in 30 ILCS 235/2(h)(1)411).
F. Money market mutual funds regulated by the Securities and Exchange Commission
and whose portfolios consist only of dollar -denominated securities.
G. Local government investment pools, either state -administered or through joint
powers statutes and other intergovernmental agreement legislation.
IX. Collateralization
Funds on deposit (checking accounts, certificates of deposit, etc.) in excess of FDIC limits must
be secured by some form of collateral, witnessed by a written agreement and held at an
independent - third party institution in the name of the City.
X. Safekeeping and Custody
All security transactions, including collateral for repurchase agreements, entered into by the
City, shall beconducted on adelivery-versus-payment (DVP) basis. Securities will be held by
an independent third party custodian designated by the Investment Officer and evidenced by
safekeeping receipts and a written custodial agreement.
XI. Diversification
The investments shall be diversified by:
A. Limiting investments to avoid over concentration in securities from a specific issuer
or business sector (excluding U.S. Treasury securities).
B. Limiting investment in securities that have higher credit risks.
C. Investing in securities with varying maturities.
D. Continuously investing a portion of the portfolio in readily available funds such as
local government investment pools (LGIPs), money market funds or overnight
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XII.
XIII.
repurchase agreements to ensure that appropriate liquidity is maintained in order to
meet ongoing obligations.
Maximum Matures
To the extent possible, the City shall attempt to match its investments with anticipated cash
flow requirements. Unless matched to a specific cash flow, the City will not directly invest in
securities maturing more than two years from the date of purchase or in accordance with
state and local statutes and ordinances.
Reserve funds may be invested in securities exceeding two years if maturity of such
investments are made to coincide as nearly as practicable with the expected use of the funds.
The intent to invest in securities with longer maturities shall be disclosed to the corporate
authorities.
Internal Controls
The Investment Officer is responsible for establishing and maintaining an internal control
structure designed to ensure that the assets of the City are protected from loss, theft or
misuse. The internal control structure shall be designed to provide reasonable assurance that
these objectives are met. The concept of reasonable assurance recognizes that (1) the cost of
a control should not exceed the benefits likely to be derived and (2) the valuation of costs and
benefits requires estimates and judgments by management.
Accordingly, the Investment Officer shall establish a process for an annual independent
review by an external auditor to assure compliance with policies and procedures. The
internal controls shall address the following points:
A. Control of collusion.
B. Separation of transaction authority from accounting and recordkeeping.
C. Custodial safekeeping.
D. Avoidance of physical delivery securities.
E. Clear delegation of authority to subordinate staff members.
F. Written confirmation of transactions for investments and wire transfers.
G. Development of a wire transfer agreement with the lead bank and third -party
custodian.
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XIV. Performance Standards
The investment portfolio will be managed in accordance with the parameters specified within
this policy. The portfolio should obtain a market average rate of return during a
market/economic environment of stable interest rates. A series of appropriate benchmarks
shall be established against which portfolio performance shall be compared on a regular
basis.
XV. Reporting
The Investment Officer, or his designee, shall prepare an investment report at least quarterly,
including a management summary that provides an analysis of the status of the current
investment portfolio and transactions made over the last quarter. This management
summary will be prepared in a manner which will allow the City to ascertain whether
investment activities during the reporting period have conformed to the investment policy.
The report should be provided to the Investment Officer, the legislative body, and any pool
participants. The report will include the following:
A. Listing of individual securities held at the end of the reporting period.
B. Realized and unrealized gains or losses resulting from appreciation or depreciation
by listing the cost and market value of securities over one-year duration that are not
intended to be held until maturity.
C. Average weighted yield to maturity of portfolio on investments as compared to
applicable benchmarks.
D. Listing of investment by maturity date.
E. Percentage of the total portfolio which each type of investment represents.
XVI. Marking to Market
A statement of the market value of the portfolio shall be issued to the Mayor and City Council
quarterly.
XVII. Exemption
Any investment currently held that does not meet the guidelines of this policy shall be
exempted from the requirement of this policy. At maturity or liquidation, such monies shall
be reinvested only as provided by this policy.
XVIII. Amendments
This policy shall be reviewed on an annual basis. The Investment Officer may implement
changes in the investment policy after gaining approval from the Mayor and City Council for
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the amendments. Any and all amendments to the investment policy shall be provided to the
individual(s) charged with maintaining internal controls.
XIX. Investment Policy Adoption
The investment policy shall be adopted by the Mayor and City Council. The policy shall be
reviewed on an annual basis by the Investment Officer and any modifications made thereto
must be presented to the Mayor and City Council for approval.
Purchasing Policy and Procedures
General Rules. Regulations and Ethics
• Purchasing activities for the City of McHenry shall be in accordance with this Purchasing
Policy, City Ordinances and applicable Statutes of the State of Illinois.
• Items procured will represent the maximum economical benefit for each dollar spent.
• Procurement shall be made of commodities and services of high quality and continued
availability.
• Whenever possible, purchases shall be based on obtaining cost comparisons, quotations or
competitive bids. In the case that it is not possible to obtain cost comparisons, quotations or
competitive bids, this will be identified in the approval and review process.
• Purchases shall be based on obtaining better knowledge of methods and of commodities
required to operate cost effectively.
• Local participation will be encouraged in the procurement process.
• Consideration should be given to participate in cooperative purchasing efforts with other
local government entities and in the State of Illinois Joint Purchasing Program whenever
possible.
• All personnel involved in the purchasing process shall conduct themselves with fairness and
impartiality, and demand the same of all vendors.
• Negotiations and discussions involving purchasing shall be conducted in compliance with the
Code of Ethics and Rules of Conduct in the City's Personnel Handbook.
• The purchasing process will promote professionalism and be committed to the efficiencies of
centralized purchasing.
Approval Requirements &Delegations of Authority
• The purpose of this procedure is to outline the required approvals for all purchase
commitments and transactions, and secondly, to define City personnel by classification who
are authorized to initiate purchases at various monetary levels for materials, equipment,
supplies and services.
• All designated personnel shall obtain the required approval(s) prior to final commitment. If
one or more person's approval is required who is not available, the approval must be
obtained from the next highest level of authority of approval level.
[COIL]
• Prior to approval for payment by the City Council, Department Directors and the City
Administrator must approve all purchase invoices for those transactions and commitments
of authorized supervisors and employees.
• The following table establishes the required levels of approval based on the dollar amount of
the purchase:
City
Authorized Employees
Administrator
Mayor or
Amount
&
Department
or Finance
City
Mayor and
Supervisors/Managers
Directors
Director
Administrator
City
Council
$750 or less
X
X
X
$751 to
$3,500
X
X
$3,501 to
$6,500
X
$6,501 to
$10,000
X
More than
$10,000
X
• The following table lists those position classifications authorized to initiate purchases in
relationship to the prescribed dollar amounts (from above). Those position classifications
not shown below are strictly prohibited from purchasing unless otherwise authorized by the
City Administrator or Finance Director.
Dollar Amounts
Authorized Positions)
More than $10,000
Mayor and City Council in accordance with
"Budgeted Items - Cost Comparisons,
Quotations and Competitive Bidding" section
of this policy*
$6,501- $10,000
Budgeted Items with the authorization of the
Mayor or City Administrator in accordance
with "Budgeted Items - Cost Comparisons,
Quotations and Competitive Bidding" section
of this policy*
$3,501- $6,500
Budgeted Items with authorization of the
Finance Director or City Administrator in
accordance with "Budgeted Items - Cost
Comparisons, Quotations and Competitive
Bidding" section of this policy*
$751- $31500
Budgeted Items with authorization of the
Department Director in accordance with
"Budgeted Items - Cost Comparisons,
Quotations and Competitive Bidding" section
of this polic *
$750 or less
Budgeted Items by Employees authorized by
their immediate Superintendent, Manager, or
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Department Director in accordance with
"Budgeted Items - Cost Comparisons,
Quotations and Competitive Bidding" section
of this policy*
*For items not identified as "Budgeted Items", budget amendment requests will be brought
before the City Council for consideration/approval for items over $6,500 unless the action is
considered emergency in nature. Should this be the case, Council will be notified of the
purchase/acquisition and the item will be presented for approval at the next regular meeting of
the City Council.
• Definitions of authorized positions:
Authorized Dollar
Amount Authorized Position(s)
$750 or less Authorized Employees: (must have prior approval of their
immediate Supervisor, Manager, or Department Director)
• Executive Assistant/Deputy City Clerk
• Administrative Assistants (all departments)
• Public Works Maintenance Worker
• Public Works Operator
• Public Works Mechanic
• Parks & Recreation Maintenance Worker
• Public Works Project Engineer
• Community Development Plumbing Inspector
• Community Development Code Enforcement Officer
• Community Development Permit Technician
Supervisors/Managers:
• Public Works Water Division Superintendent
• Public Works Wastewater Division Superintendent
• Public Works Street Division Superintendent
• Public Works Wastewater Division Assistant
Superintendent
• Public Works Utility Division Superintendent
• Public Works Forestry Division Superintendent
• Community Development Superintendent of
Residential Inspections
• Community Development Superintendent of
Commercial Inspections
• Parks & Recreation Parks Division Superintendent
• Parks & Recreation Parks Division Assistant
Superintendent
• Parks &Recreation Recreation Center Manager
• Recreation Superintendent of Programs
• Recreation Superintendent of Athletics & Aquatics
• Police Deputy Chief
• Police Commander of Operations
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• Police Commander of Support Services
• Police Sergeants
• Police Dispatch Supervisor
• Information Technology Manager
$751- $31500
Department Directors:
• Deputy City Administrator/Director of Parks &
Recreation
• Director of Economic Development
• Director of Community Development
• Director of Finance
• Director of Public Works
• Chief of Police
$3,501- $6,500
City Administrator or Finance Director
$6,501- $10,000
Mayor or City Administrator
More than $10,000
May and City Council
Budgeted Items -Cost Comparison. Quotations and Competitive Bidding
• For budgeted items under $6,500 authorized positions shall obtain, where possible, three (3)
cost comparisons prior to the purchase of goods and/ services.
• For budgeted items between $6,501 and $10,000 authorized positions shall obtain, where
possible, three (j cost comparisons or three (3) written quotations prior to the purchase of
goods and/or services.
• For budgeted items over $10,000, but less than $20,000, staff shall obtain, where possible,
three (3) written quotations for the purchase of goods and/or services for consideration and
approval by the City Council.
• For budgeted items over $20,000, the purchase of goods and/or services shall follow a formal
competitive bidding process whereby staff develops bid specifications, Council approves a
request to advertise for bids, bids are received and evaluated, and a recommendation is
forwarded to the City Council for award/approval.
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Glossary of Terms
Accrual Basis of ACCOuntln6: A method of accounting that recognizes the financial effect of
transactions, events, and interfund activities when they occur, regardless of the timing of related cash
flows.
Activi :Specc or distinguishable type of work performed by a component of government for the
purpose of accomplishing a function for which the government is responsible.
Annropriation: Legal authorization by the City Council to make expenditures and to incur
obligations for specific purposes.
Assessed Valuation: A valuation set upon real estate or other property by a government as a basis
for levying taxes.
Availability Criterion: Principle of the modified accrual basis of accounting according to which
revenues may only be recognized when they are collectible within the current period or soon enough
thereafter to be used to pay liabilities of the current period.
Basis of Accountine: The timing of recognition, that is, when the effects of transactions or events
should be recognized for financial reporting purposes. For example, the effects of transactions or
events can be recognized on an accrual basis (that is, when the transactions or events take place), or
on a cash basis (that is, when cash is received or paid).
Bond: A written promise to pay a specific sum of money, called the face value or principal amount,
at a specified date or dates in the future, called the maturity dates, together with periodic interest at
a specified rate.
Budget: The financial plan for the operation of a program or organization, which includes an
estimate of proposed expenditures for a given period, and the proposed means of financing those
expenditures.
Budget Message: A general outline of the budget, which includes comments regarding the
government's experience during the past period, its financial status at the time of the message, and
recommendations regarding the financial policy for the coming period.
Budgetary Basis of Accounting The method used to determine when revenues and expenditures
are recognized for budgetary purposes.
Business -Type Activities: Activities of the City that are financed in whole, or in part, by fees charged
to external parties for goods or services. These activities are accounted for as enterprise funds and
include the Airport, Transit, Parking, Golf Course, Boat Harbor, Marina, Ambulance, Refuse Collection,
Landfill, Transfer Station, Water Pollution Control, and Collection and Drainage Funds.
Capital Improvements Program: An annually updated plan or schedule of projected expenditures
for public facilities and improvements which includes estimated project costs, sources of funding,
and timing of work over a five-year period. For financial planning and general management, the
program is presented as a plan of work and proposed expenditures, and is the basis for appropriation
requests and bond issues.
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Capital Outlaw Fixed assets which have a value of $300 or more and have a useful economic lifetime
of more than one year.
Capital Projects Fund: Fund used to account for financial resources to be used for the acquisition
or construction of major capital facilities.
Commodities: Supplies required by the municipality in order to perform the services to its citizens.
Community and Economic Development Function: Government function that provides for
planning and development of the City including the social, physical and economic needs of the City.
Activities included in this function are Planning, Zoning and Building Safety, Economic Development
and the Municipal Housing Programs,
Contractual Services: Services other than employee services such as contractual arrangements and
consultant services, which may be required by the municipality.
Culture and Recreation Function: This function promotes the general well being of the City and
encourages the fullest development of cultural and educational potentials of the citizens in the
community. This function includes the activities of library, art center, parks and recreation, and
cemetery.
Debt Service Fund: A fund established to account for the accumulation of resources for and the
payment of general long-term debt, principal, and interest.
Depreciation: An appropriation is expended when a capital asset is acquired or constructed. By
definition, a capital asset has a service life expected to extend over more than one fiscal period. The
process of allocating the cost of a capital asset to the periods during which the asset is used is called
depreciation.
Encumbrances: Obligations in the form of purchase orders, and/or contracts, which are chargeable
to an appropriation and for which a part of the appropriation is reserved.
Enterprise Fund: A fund established to account for operations that are financed and operated in a
manner similar to private business enterprises. The intent of a governing body is that the cost of
providing goods and services to the general public on a continuing basis be financed or recovered
primarily through user charges or where the governing body has decided that periodic determination
A revenues earned, expenses incurred and/or net income is appropriate for capital maintenance,
public policy, management control, accountability, or other purposes.
Expenditures: The cost of goods received or services rendered for the government unit. For the City
of McHenry, expenditures are charged against an appropriation when incurred, not when paid.
Fiscal Policy: The City of McHenry's policy with respect to taxes, spending and debt management as
they relate to government services, programs, and capital investments.
Fiscal Year: A twelve-month period to which an annual operating budget applies.
Fringe Benefits: Benefits paid by the City of McHenry for social security, retirement, group health,
life, dental and long-term disability insurance. It also includes costs for worker's compensation and
unemployment.
Function: A group of related activities aimed at providing a major service or regulatory program for
which a government is responsible.
Fund: The fiscal and accounting entity with aself-balancing set of accounts recording cash and other
financial resources together with all related liabilities and residual equity or balances and changes
therein which are segregated for the purpose of carrying out specific activities or obtaining certain
objectives in accordance with special regulations, restrictions or limitations.
Fund Balance: Funds remaining after the application of available revenues and resources to support
expenditures for the fund.
General Fund: A fund used to account for all financial resources except those required to be
accounted for in another fund.
General Government Function: Function that provides for the operation of the government and
assures the general administration of the municipality. Activities included in this function are mayor
and council, legal services, city administrator, human resources, wellness program, finance,
computer operations, risk management, and buildings and grounds.
General Obligation Bonds: Bonds for the payment of which the full faith and credit of the issuing
government are pledged. Goal: Broad statement of desired results for the city, department, and/or
activity relating to the quality of services to be provided to the citizens of McHenry.
Governmental Funds: Funds generally used to account for tax -supported activities. There are five
different types of governmental funds: the general fund, special revenue funds, debt service funds,
capital projects funds, and permanent hinds.
Health and Social Services Function: Government function which provides for assistance to
service agencies involved in providing health and social services in the community. For the City, this
function includes the Economic Well -Being activity.
Intergovernmental Revenues: Revenue from other governments, primarily in the form of Federal
and State grants, but may also be payments from other local governments.
Internal Service Fund: A fund used to account for the financing of goods and services provided by
one department or agency to other departments or agencies of a government on a reimbursement basis.
basis.
Legal Debt Martin: The excess of the amount of debt legally authorized over the amount of debt
outstanding.
Level of Service: Generally used to define the existing or current services, programs and facilities
provided by the government for its citizens. Level of service of any given activity maybe increased,
decreased, or remain the same depending upon the needs, alternatives, and available resources.
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L v : The total amount of taxes, special assessments, or service charges imposed by a government
to support governmental activities.
Modified Accrual Basis of ACcouLtL ,.% Basis of accounting according to which (a) revenues are
recognized in the accounting period in which they become available and measurable and (b)
expenditures are recognized in the accounting period in which the fund liability is incurred, if
measurable, except for unmatured interest on general long-term debt and certain similar accrued
)bligations, which should be recognized when due.
Objectives: Specific measurable achievements that an activity seeks to accomplish within a given
time frame, which are directed to a particular goal. An objective should be stated in terms of results,
not processes or activities. For the City of McHenry, departmental objectives are included in the
department's budget request.
Ordinance: A formal legislative enactment by the governing body of a municipality.
Performance Measurement: Commonly used term for service efforts and accomplishments
reporting.
Permanent Funds: A fiduciary fund type used to report resources that are legally restricted to the
extent that only earnings, and not principal, may be used for purposes that support the reporting
government's programs.
Personal Services: Expenditures for salaries, wages, and related employee benefits for persons
employed by the municipality.
Proprietary Funds: Funds that focus on the determination of operating income, changes in net
assets (or cost recovery), financial position, and cash flows. There are two different types of
proprietary funds: enterprise funds and internal service funds.
Public Safetv Function: Government function that provides for services to reduce the amount and
effects of external harm to individuals and damage to property, and in general to promote an
atmosphere of personal security from external events. Police, animal control, communications, fire,
and civil defense activities are included in this function.
Public Works Function: Government function that provides for safe and well -maintained
infrastructure for the City. Activities included in this function are public works administration,
roadway maintenance, snow and ice control, street cleaning, traffic control and engineering.
Resolution: An order of a legislative body requiring less legal formality than an ordinance;
additionally, it has less legal status.
Revenue: Income received by the City of McHenry to support the government's program of services
to the citizens. Income includes such items as property tax, fees, user charges, grants and fines.
Special Assessment: A compulsory levy made against certain properties to defray part or all of the
cost of a specific improvement or service deemed to primarily benefit those properties.
Special Revenue Funds: Funds used to account for proceeds of specific revenue sources that are
legally restricted to expenditures for specified purposes.
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Taxable Valuations: Valuations set upon real estate or other property by a government as the basis
for levying taxes.
Taxes: Compulsory charges levied by government for the purpose of financing services performed
for the common benefit. This does not include specific charges made against particular persons or
property for current or permanent benefits such as special assessments.
Trust and Agency Funds: Funds used to account for assets held by a government in a trustee or
agent capacity for individuals, private organizations, other governments, and/or other finds.
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