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HomeMy WebLinkAboutPacket - 04/19/2021 - Budget 21-22r* �•. ,.cam' ., � ` '' • " y •' ly��'; V. ;for# F �, riP+._Yq• %A _r `�'..I- Ilan it -Fd � , w's Al V- e, F j / in �( t % lit ct V000 City of McHenry, Illinois FY2021/2022 Annual Budget Table of Contents Letter of Transmittal Introduction....................................................................................................................... 1 Elected Officials, Department Directors and Primary Administrators... own Mae EWEN 2 History and Demographic Snapshot of McHenry .............................................. 3 City of McHenry Strategic Plan Summary...... Now 0*0 sommonion MEN McMinn Egg operators mass@@ his MEN NONE 5 Budget Document Guide...... map 919121 safflas assamalfft @sense &is momaofflom man man mom Mae W99211812 length mammon Oman 10 Basis of Accounting and Budgeting. . 0 a 5 0 9 0 0 9 9 1 5 1 a a a I a a a 1 0 1 a I a a 1 2 1 a I I a a 1 0 2 0 a 0 0 0 0 a a 2 a a 0 0 a a 0 4 1 1 a a I I I a I I a I a 11 Budget Process Summary... am mommovomovgm man Its INS cannon an@ man Moslem mom as@ MAE notion mom 4*5 %lemon liffmos Nag Bad 12 Budget Process Timeline..................................................................................... 14 City of McHenry Organizational Chart............ ... too mom Noncom mom Mom Koo onsome tattoo IRE recall son Bonn 15 PersonnelSummary............ ... Monson nommommon End ANN Meadow 991818216611 INS IBM mom maAffingens 010 nammms 16 Fund Structure Overview......... oilman 1916manom man Nam mom mom onloommom moomwo PON Sowell cameos offlessoffm WEEVER11% 17 Chart of Accounts Overview...... NOONAN man MEN KEZENERME mom man man onamemses gas SIR Ismals slaskeffam MENNEN moo Novae 20 Summary of Revenues &Expenditures -All Funds ....................................................... 31 Summary of Proposed Revenues - All Funds. . ff K a 0 0 a 0 2 0 0 a 0 0 0 a 0 0 4 9 a I I a a I I a I @Neonatal *to NNE oil amox 32 Comparison of Budget vs. Proposed Revenues - All Funds......... Basin@ sommom ERE law Ogg 33 Summary of Revenues and Other Financing Sources - All Funds... Baltimore attacks& 34 Summary of Proposed Expenditures - All Funds............ aleffivals IBM @INMAN anagoomems4a Sala 35 Comparison of Budget vs. Proposed Expenditures - All Funds... pan 118812 soffmansommam 36 Expenditures by Function - All Funds, . I I a 0 1 2 a a 0 a a 0 a a 0 2 a 0 a 0 & a & I K 0 ff 0 0 0 2 0 0 0 0 a a 4 a 5 1 0 1 1 a a I I a I a ff B I a a 0 a a 0 E 37 General Fund Revenues, Expenditures &Fund Balance Summary ............................... 38 General Fund Overview......... mattesaffs 61261cesmass BAN Iffiling themon Koo mom nommem astageolsoll 39 General Fund Revenues, Expenditures and Fund Balance Summary............... 39 General Fund Revenues - Budgeted, Estimated, Proposed...... lossameledit men man NNE OMNI 40 General Fund Expenditures - Budgeted, Estimated, Proposed... NEW Sol Nag Big man BOB also 44 General Fund - Fund Balance................. I NEKKINIKE InEaREAKFAIN nomese all Non man sagesseld 1*6 *am mom man MORE 46 GeneralFund Operating Budgets...................................................................................... 49 General Fund Operating Budgets Overview......................................................a 50 General Administration, I a I a a 0 9 0 a a 0 1 1 0 a a 0 0 0 0 0 0 K ff a 0 owmmwm mom calendar@ man slogan in@ ISO moo own man mossesmal tons 53 ElectedOfficials.................................................................................................... 60 CommunityDevelopment...... not don man man man moommosen gas Nam man anallsoffs Bit Ism so@ @to rommooKmo mommem gas man else 63 Finance...... Ism Ism mammon Mae man REMO a a a 0 0 0 a 0 0 a 0 0 2 0 0 a 0 2 0 0 a a 0 v a 0 0 9 9 a 9 a 9 a a I a I a I I a Else 0 0 a a * a 0 0 0 0 0 0 0 0 0 0 71 Human Resources...... wousloollaffs Ism man as@ me@ Mtn mom MENNEN mom mom IBM moo Moscow man slogan NSA lam too his mom MENNEN RON Inge 79 Economic Development............ low gas magnum assamesto mom SSE mom mogainsms BAN mommommem cosmetics taffessess has NAME 85 PoliceCommission...... @sessions ohm Nag smanno monomm mosmanvow lam primes vassal losing man Egoism ohm nomwon Mon non are Rogers 94 Police......... son tonsiffams malign ago 0 0 0 a 0 0 1 0 v 0 4 0 a I a I a a I W a a B a a I a I a a B a I I a a a ff a a a 0 0 0 0 A 0 a ff 0 a 0 0 0 0 0 a 0 0 0 a 0 4 4 1 a I a I I a a I I a a 1 0 a I a a a a a a am 97 NERCOM(Dispatch)... Mom mom awn mammon Edison man man Ism Not 2 h I Btu 9 a a his 0 0 0 0 0 a 0 K 0 0 a K 0 a 0 a 0 0 Iwo a 5 1 a I a a In a I a a I a an 0 a 0 0 a 0 0 ff 115 Public Works -Administration... Monson MENNEN non polmovale mammon gleams man @legal mmu*ml mom Mae mom amovol Belgian 123 Public Works - Streets... moo anamon Koo mom mom monsom raw muscle Mellon names@ Nag Big mom vffllmmmmm Von man oil too now 130 Parks and Recreation... ... Non man lam now mom olanno malwapsal Ogg monsoonal smsama*ld mommon mom allocated 139 Special Revenue Funds... MENNEN made man mop BMW sousiffams lam assaffieffiffia clause mom MENNEN nommom mom ornmon sv.rgeole Non Moslem mannoz man Bonn 150 Tourism................................................................................................................... 151 Pageant...... ... sommin mom mom Mon MOV45ses Nag troops ffileffiesseBle mom offinnom annommummano MEN Emmaus 1698291affIffal a 2 a 1 0 * a 0 a 0 0 0 0 0 K a 0 0 2 0 4 154 Band......................................................................................................................... 157 CivilDefense...... ... man man man sommosiol mom mom mom non Ban Mae Mae posameaffs Ingessliffaffs Raw mom man 020 mom sommon 920 moo mom lam also@@ 160 AlarmBoard... ... ERE man one man BIRROBBINNSO mom MENNEN ME RKMRRMRMKIMRM loweve moo man IRS assess moo eta man monommewom 163 Audit........................................................................................................................ 166 Annexation............................................................................................................... 169 MotorFuel Tax......... gap Pon manumn mom mom onegalemmmmm MEN Emanow son peg gas nomenumoneffis matemn mom onsommugh offisepwomm Emn MENEM 172 DeveloperDonation...... assess Its see opsmmm Noonan &@Damages Non mom man monslooloolo man mom mom offivalsoll %BOREN now mom season 175 Tax Increment Finance...... nommosoon Manson mosses use NNE Emn ENE offiftessall gap man mom mom Romano peg PRE Elm MONACO looffilvelas 178 Capital Projects & Debt Service Funds......won son Bag Iry use ............ Bog ............ mammon Sol ............ boo ......@ 181 DebtService Fund......... poozommosing mom &legal VON pun NEE Elm Ban not all mpg onamon MEN one Its pop pan MENOMONEE moo levels mammon 182 Recreation Center Fund...... assess mom woonto ago moo mossaugnm Emommosse Non 198900 mpg Monona someffigall 185 SpecialService Area#4.......................................................................................... 193 Capital Improvements Fund............ nommom mom mom mom mossoomon annoon own Neff map NNE MENNEN man &Bosom IRE INDOOR oloon 196 CapitalEquipment Fund...... BOB vowasoloomon onamosell ISO men man mom moasseeng low Ensomm mom MESSES Ramapo ovamom nownesse 199 EnterpriseFunds................................................................................................................. 202 Water& Sewer Fund... has offoleasts Mtn ommano man gas Saslow now MEMSER mosslooll OFF man MENNEN gasoline& moo MENNEN 0 a a a I a 0 a a a 203 PublicWorks — Water............ MENNEN mom Sol &SOREN man Nowswools monsoomon man mouton MROOMMONN IME man Monona mossal Islas 206 Public Works — Wastewater...... olessomal mom momwoomas mom lop owe monsomemooll magelffemn Emosommos 0 0 0 0 211 PublicWorks — Utility............................................................................................ 216 CapitalDevelopment...... was mom via mom oloomm boo Ban Boston Non Ems moo *among Malawi ammonamosoms assaffs Ron onommumon monsoon 229 UtilityImprovements... mom mooffnEelvele PER man Ems Emu Rol Non Boo moo son EMMONS now Beffavesom mom MONROE mossissoffeem woommonam 232 MarinaOperations... mom mothasoffs man lopmon MEMENCE&O man spossamme man ommons nut sea @Small blooms Ron Kimonos@ 235 InternalService Funds....................................................................................................... 238 EmployeeInsurance... Non Edison posons now all men now Mae mom Emu nommoseas slommm MENNEN mammon sea slaves too mom one man one logo 239 RiskManagement............ MENNEN met o1offiffsoloazo moommooke man mallow mommmm*musme slogan Blowup *FREE 242 FiduciaryFunds................................................................................................................... 245 Employee Flexible Spending... ... ommomookk man olowsmono mom man moo offilgavemonKs Fog man Elooffm Rol MISR 246 Development Escrow............ Nelson mom ussevelogool Ono MENNEN Eno mossom offiffialsican 249 Retained Personnel...... @among Non woffmon van mom Iry onsamosso Steve@@ 252 RevolvingLoan....................................................................................................... 255 PolicePension. . a 0 a 2 1 a a 0 1 9 1 9 In a 0 0 0 0 U 0 0 a 1 0 a B I I a 0 5 0 0 1 0 0 0 a 0 0 a I h a I a 1 0 a I a 0 4 1 0 a a 0 0 0 a a I I a I a I a a a a 1 0 2 0 1 0 0 0 a 0 0 0 a I a a I a a I a a a a a a a a a a 258 SupplementalInformation.................................................................................................. 261 FinancialPolicies Overview................................................................................... 262 Fund Balance and Reserve Policy... ... Bat Bog Dan son Mtn MCI SRI all one mom mom has man now now Non mom mom Bud man man Bosom 264 Capital Improvement Program Financial Policies......... mom mom Daniel all man loosommom mom and offilmiff 273 InvestmentPolicy...... moommo offmagoaloomw Dan nommossom lasses Mae wommon nommosses sop Pan MME Enommolsomen man olosom MENNEN gas 274 Purchasing Policy and Procedures............ hot Dallas goo nammooffoo mammon mammon Noonan mom offillsomessow Ron Emma 281 Glossaryof Terms......... MENNEN muses@ moo Ban moonso mammon onslamous mummommis asseffaval Non onsumn Mae emissions Bemoan MEMO@@ 283 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 DATE: April 19, 2021 TO: Mayor and City Council FROM: DerilcMorefield,CityAdministrator Carolyn Lynch, Finance Director RE: Transmittal of the FY21/22 Proposed Budget The City's annual fiscal year budget covers the period beginning May 15t 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 Finance Director and City Administrator, are accountable to the City Council and to the residents of McHenry for the performance of departments in meeting the goals and objectives of a full service municipality, 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 submitted to the City Administrator and Finance Director, and 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. This goal is able to be achieved in the attached budget information. The COVID49 Pandemic presented the City of McHenry with a significant financial challenge in FY20/21. The unknowns associated with economic impact of the pandemic were estimated to reduce revenues by as much as 20%. In response to this threat, and with the full support of the City Council, the City Administration moved to immediately defer or reduce expenditures and put in place a number of internal controls to protect the financial stability of the municipality. Ultimately, revenue losses never reached the 20% level, primarily due to a recovery in retail expenditures and revenue assistance through the CARES Act. However, the City was still able to reduce FY20/21 expenditures by more than $1.9 million dollars, resulting in a net addition to the General Fund Balance by approximately $1.15 million. The FY21/22 Budget, as proposed, includes extremely conservative revenue projections as we continue to monitor the pandemic and its impact on municipal revenues. Budget expenditures include an 8.8% reduction in personnel costs, achieved through a combination of cost savings through employee retirements and attrition, reorganization, and the decision in FY20/21 to bond the outstanding police pension liability. The budget includes more than $6 million in capital projects, including a $2.1 million local road program. In closing, the following budget document provides accountability for each and every dollar that the municipality brings in as revenue and plans for expenditure. Further, the document includes analyses and recommendations based on the best available information that staff has at the time of budget development 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. Fiscal Year 2021/2022 Annual Budget Introduction Elected Officials Wayne S. Jett, Mayor Ward 1 Victor A. Santi, Alderman Ward 2 Andy Glab, Alderman Ward 3 Jeffrey A. Schaefer, Alderman Ward 4 Ryan Harding, Alderman Ward 5 Chad Mihevc, Alderman Ward 6 Patrick Devine, Alderman Ward 7 Sue Miller, Alderwoman Department Directors and Primary Administrators Derik Morefield City Administrator John Birlc, 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 Troy Strange, Director of Public Works Fa 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 McHent•y led an expeditionary force through northet•n Illinois during the Blacic 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 wet•e influential in the community's eat•ly 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 Creels, and a wagon road entered town from the south in 1851. In 1864, the famed Riverside Hotel was built and still stands today. Geot•ge 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 flout fished. By 1876 thet e wet a seven churches and over 80 enterprises, including our 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 Rivet• on a new two-lane bridge. The old wagon trail, now Highway 31, doglegged along the same route for• a critical ha1F mile Uefore turning north toward Wisconsin. These configurations effectively relocated the city's commercial :enterto 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 het• growth to the stability pt•ovided 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 11. 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 leas 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 ernployee/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/12.30A. Green Street loo{cing south from State Route 120 (circa 1920's) City of McHenry Strategic Plan Summa 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 McHen►y 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. [n the spri►ug oF2016 Staff and Council undertook a review of the 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 initial 2014 St►•ategic 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 (C1P) and Annual Budget. Attributes are listed in order of importance based on participant feedback. Mission State►nent 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 Council) • 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. (Off►ce of the City Administrator, Department 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 City Administrato►) s 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 followings • 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-SS 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 Goal 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, 7. Inter Departmental Teamwork To continue to foster a climate of collaboration among departments and within divisions. Wealciiesses: Physical assets, supplies, talents, etc. that are deFicient and impede the ability to achieve our vision. Attribute Goal To continue to evaluate and prioritize 1. Aging Infrastructure infrastructure needs, continuously work to 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. To define and prioritize technology needs of the 3. Aging Technology municipality and develop and implement technology lan s . To continuously implement methods for providing enhanced customer service, 90. Public Perception of Government increased information and to make City processes, procedures, intentions, actions as transparent as possible. To develop a methodology foil 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 Onuortunities: Situations that can have a positive effect on the organization if considered or acted upon. Attribute Goal 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 5. 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 internet website to make it more transparent 8. Reconstructed City Website and City Council and user friendly and to take the steps required A/V to be able to either live stream or record stream City Council Meetings. 0 Threats: Opposite of opportunities. Factors that can have a negative impact on local government. Attribute Goal 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 S. Pension, Benefit, Insurance Costs insurance and benefits - adjusting employee contributions as necessary, To explore, implement unique opportunities for 6. Business Incentives business incentives for location and expansion that sets McHenry apart as a business -friendly community regardless of the State's issues. L•] Budget Document Guide This budget document is prepared with two major objectives in 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 2017/18 through 2019/20 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 FY20/21 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.ciityofmchenry.org 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.cityofmchenry.org. so Basis of ACCounti and Bu ting 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 atyear-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. 11 Budget Process Summary Budget Process Overview The City's annual fiscal year budget covers the period beginning May 1SL 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/Community Investment Plant Previous to FY21/22 the City of McHenry utilized a five-year Capital Improvement Program (CIP) as a planning tool for the identification of capital improvement and capital equipment projects. In an effort to develop a more useful short and long-term planning and budgeting tool for capital improvement and capital equipment items the City Administration, led by the Director of Public Works, is in the process of developing a new Community Investment Plan document to replace the Capital Improvement Plan beginning in FY22/23. This document will provide more accurate financials for capital acquisition and replacement over a 20-year period. This document will also be reviewed and updated on annual basis. 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 Al 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 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 iz period (Apri130) the City is required to pass a supplemental appropriation ordinance to amend the original appropriation ordinance to account for these budget amendments. Budget A►nendment 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 and updated in 2020. 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. Prepa►•ation to Achieve the Gove►•nment Finance Office►•s Association (GFOA) Budget Awa►•d 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, oi• 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. 13 Budget Process Timeline Monday, January 4, 2021 City Administrator, Finance Director distributes instructions for budget preparation to Department Directors Friday, January 22, 2021 Department Directors submit budget requests to City Administrator and Finance Director - revenues and expenditures only (no narratives) January 25-February 5, 2021 City Administrator and Finance Director review budget requests with respective Department Directors Friday, February 5, 2021 Department Directors submit completed budget narratives to City Administrator February 8-March 5, 2021 Preparation of the Draft FY21/22 Budget Monday, March 8, 2021 Transmit Draft FY21/22 Budget to City Council (operating funds) Monday, March 15, 2021 City Council Regular Meeting -Discussion of Draft FY21/21 Budget (operating funds) Monday, Apri15, 2021 City Council Regular Meeting -Discussion of Draft FY21/22 Budget (all funds) Monday, Apri112, 2021 Final FY21/22 Budget (including narratives) transmitted to City Council Apri119, 2021 Annual Meeting - FY21/22 Budget adopted by City Council 14 tvlayor and City Council Cily Clerk Office of the City Deputy City Administrator Clerk/Executive Assistant Parks & Community Economic Finance Public Works Human Police Recreation Development Development Resources Parks Planning & Accounts Treatment Field Operations Maintenance Zoning Payable Operations Operations Division Recreation Center Commercial Accounts Water Streets Support Services Inspections Receivable Division Division Division Aquatic Residential Utility Sewer Utility NERCOM Center Inspections Billing Division Division Dispatch Recreation Code Fleet Information Programs Enforcement , , Maintenance Technology Division Municipal Center Maintenance 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 FY21/22. 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. For FY21/22, overall staffing has been reduced by a total of four (4) full time employees due to retirements/attrition and departmental reorganizations. Staffing identified in the Recreation Center and Water and Sewer Fttnds is financed by 1•evenues generated by these funds. gAutliorized Personnel General Fund Administration 1.00 4.00 3.00 3.00 3.00 6.00 6.00 6.00 6.00 Elected Officials 0.00 0.00 0.00 0.00 0.00 0.00 0.00 1.00 1.00 Community Development 0.50 7.00 7.50 7.50 6.50 7.90 MO 5.50 5.50 Finance Department 0.00 5.00 5.00 5.00 6.00 5.00 5.00 1 4.60 4.60 Human Resource Department 0.00 2.00 2.00 2.00 1.00 0.00 0200 0.00 0.00 Economic Development Department 0.00 2000 2.00 2000 3.00 0.00 0.00 0.00 0.00 Police Department 1.00 53.75 1 54.75 54.75 52.75 52.75 51.75 61.88 60.88 NERCOM (Dispatch) 0.00 23.25 23.25 23.25 22.25 22.25 12.25 0.00 0.00 Public Works Administration 0.00 3,00 IN 3.50 3.50 3.50 4.50 IN 2.00 Public Works Streets 3.00 14.00 17.00 19.00 19.00 19.00 18.00 18.00N1100 0 Parks and Recreation 0.00 10.75 10.75 10.50 9.25 11.00 11.00 13.00 Total General Fund %50 124.75 128.25 130.50 126.25 127.40 116.40 111.9898 Recreation Center Fund 0.00 2.05 2.05 IN 2.25 1.00 1.00 0.000 Information Technology Fund 0.00 2.00 2.00 IN 2.00 2,00 2000 2.00 2.00 Water and Sewer Fund Water Division 0.50 5.00 5.50 5.50 5.50 5150 5.50 4.50 9.50 Wastewater Division 1.00 9.00 8.00 8100 8.00 9.00 7.00 7.00 10.00 Utility Division 1.00 7.00 8.00 8.00 8.00 8.00 1 9.00 9.00 0.00 Total Water and Sewer Fund (0.50) 21.00 21.50 21.50 21.50 22.50 21,50 19.50 19.50 Total City of McHenry (4.00 149.80 153.80 156.00 152.00 152.90 140,90 133.48 132.48 Population 26,992 26,992 26,992 26,992 26,992 26,992 260992 26,992 Employees per 1,000 Population 5.55 5.70 5.78 5.67 5.66 5,22 4.95 4.91 16 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 fiend 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 foil 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 al a 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 of the City are the Employee Insurance Fund, Risk Management Fund, and Information Technology Fund. 1� The City's other funds include the following: Fiduciary Fundat a) 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 fimction is to protect and promote the health, welfare, safety and quality A 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 managementpractices to ensure thatthe 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. m 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. 19 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. ao 3141 Inter -Track Wagering - Amount collected for a 10/o 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 fn checlting 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 ft•om Uusinesses within the City for licenses for massage parlors, athletic exhibitions for profit, billiard and pool halls, carnivals, circuses, exhibitions, motion pI ctures 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 miscellaneours improvements such as roof repairs, siding r epafrs, 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 befot•e the planning &zoning commission for items lflce 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. 21 3532 Overweight Truck Permits - Amount collected for the issuance of overweight truck permits. 3536 Police Bail Bond Processing Fees - Amount collected m 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 III received from other govez nmental agencies for the execution of a warrant by the City's police department. 3539 Electronic Citation -Amount collected by the McHenry County Circuit Clerlc 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 301". 3545 Vehicle Fund Fines -Amount collected by the McHenz•y County Circuit Clerlc and forwarded to the City for vehicle court supervision fines. 3610 Sales -Water/Sewer -Amount collected for water and sewer usage Uased on metez• 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 Co 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 depaz tment. 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 Centez•. 3642 Room Rentals -Amount collected at the Recreation Center foz• community room rentals. 3643 Birthday Parties -Amount collected for birthday parties that are held and run by personnel at the Recreation Center. 22 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 fi•om 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 - Parlcs -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 maybe 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. 23 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 fi•om 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 -lnternal 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 -lnternal 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. 24 Expenses 4010 Salaries -Regular -Salary expense for employees who work 9 0 hours or full time. 4020 Salaries -Sworn -Salary expense for sworn police depa► tment employees who woi lc 40 hours or full time. 4030 Salaries -Regular Pat•t-time -Salary expense for employees who work less than 4.0 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 noii-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 Insut•attce -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 - rICA -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. 25 4510 Uniform Allowance - Expenses for uniforms and personal protective equipment provided for those public service employees required to wear uniforms while performing their jobs. ON 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, bulls 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. 26 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, pet• 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 Stt•eet Lighting -Monthly expenses for electric usage for street lights throughout the city. 5580 Disposal -Expenses for sludge removal at the wastewater plant. 5600 Credit Cat•d/Bank Fees -Expenses for monthly credit card and banking fees charged to the Recreation Center. 5950 MCMRMA Fees -Expenses for McHenry County Municipal Rislc 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 sticicer•s, 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. 2� 5141 Office Furniture/Equipment - Expenses for desks, chairs, and other small equipment at the Recreation Center. 6142 Fitness Equipment - Expenses for i`itness balls, bands, mats, cardio equipment, etc. at the Recreation Center. 6210 Bulk Office Supplies -Expenses for pens, pencils, papez, staples, binders, folders, calendars, ink, etc. 6250 Gasoline &Oil -Expenses foz• 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. 5310 Police - Canine Unit - Expenses for training, food, veterinarian bills, etc. for the sworn canine officer. 6340 Police -Forfeiture Expenses -Expenses that are paid foz• using police forfeituz•e funds that must be tracked separately. 6920 Special Events -Expenses for community festivals and events such as the flreworlcs, 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 - spendingaccounts foz• 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. �:3 6980 DIStrlbtltlotlS - 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 foi 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 foi• the issued bonds. 8100 Land Acquisition -Amount used foi• the purchase of land. 8200 Buildings -Amounts paid foi• the acquisition and improvements to intinicipal buildings. 8300 Equipment -Amount paid foi• the acquisition of equipment costing $5,000 or more such as machines, shop equipment, playground equipment, mowers, etc. 8400 Vehicles -Amount paid foi• 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 foi• improvements to municipal streets. 8800 Parlc Improvements -Amount paid formprovements to municipal parks. 8900 Public Improvements -Amount paid foi• 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 coves• miscellaneous special events with hotel/motel taxes. 9904 Transfer -Debt Service Fund -Internal Fund Transfers fi•ont 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 foi• McHenry County Municipal Rislc Management Agency. These premiums 29 cover unemployment, workers compensation, car insurance, liability, fire, theft, property damage, etc. 9921 Purchase Service - Billing General Fund - Internal Fund Tr ansfers 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. 30 Fiscal Year 2021/2022 Annual Budget Summary of Revenues & Expenditures -All Funds 31 Summary of Proposed Revenues - All Funds 1Budget q B C D E F 2 g Total Net 4 Revenue Transfers Revenue 5 General Fund $24 1783312 $630,289 $23,5481023 6 7 Spec a evenue Funds 8 1 Band Fund 0 0 0 9 JCivII Defense Fund 6,000 61000 0 10 Alarm Board Fund 210,250 0 210,250 11 JAudit Fund 42,570 16,144 26,426 12 JAnnexation Fund 325,150 0 325,150 13 Motor Fuel Tax Fund 13713,695 0 11713,695 14 Local Motor Fuel Tax Fund 312.000 0 312,000 15 1 Developer Donations 60,000 0 60,000 16 Developer Donations Parks 0 353,750 17 TIF Fund 780,000 0 780,000 18 19 E3533750 Pageant Fund 41000 0 4,000 rE Tourism Fund 1551250 0 155.250 Total Special Revenue Funds 31962,665 22,144 31940,621 20 21 22 Capital Project Funds 23 Recreation Center Construction Fund 576,235 1111985 1 464,250 24 Special Service Area #1A 0 0 1 V 0 25 26 Special Service Area #4 Capital Improvements Fund 16,123 91500 0 0 16,123 91500 27 Local Streets Improvements 0 0 0 28 Capital Equipment Fund 0 0 0 Total Capital Project Funds 601,858 111,985 4893873 29 30 31 Debt Service Funds 32 Debt Service Fund 2.350.326 1 1 2,3500326 Total Debt Service Funds 2,350,326 21350,326 1 0 0 33 34 35 36 Proprietary Funds Public Works - Water 2,700,520 0 2,700,520 37 Public Works "Wastewater 51828,368 0 51828,368 38 Public Works - Utility 110173877 11017,877 0 39 JCapital Development Fund 371,500 0 371,500 40 Marina Operations Fund 25,500 0 25,500 41 Utility Improvements Fund Total Proprietary Funds 18.215 9,961,980 15.715 2,500 11033,592 81928,388 42 43 44 Internal Service Funds 45 46 Risk Management Fund Information Technology Fund 740,175 872,231 1 715,175 8721231 25,000 0 47 Health Insurance Fund 3.520 237 26980,771 539.466 Total Internal Service Funds 51132,643 41568,177 564,466 48 49 50 Fiduciary Funds 51 Medical Flexible Spending Fund A311381306 0 40,000 52 RevolvingLoan Fund 0 900 53 Police Pension Fund 658,306 21480,000 54 Development Escrow Fund 0 0 0 55 Retained Personnel Fund 75.000 0 75.000 Total Fiduciary Funds 3,2540206 6586306 22 595.900 •� •r O. 56 57 58 Comparison of Budget vs. Proposed Revenues - All Funds MAevenue 2 A Budget B C D E 3 Pecent 4 2020121 2021l22 Difference Change 5 General Fund $24,698,778 $24,178,312 $520,466 -2,1 6 7 Special Revenue Funds 8 Band Fund 123000 0 12,000 -100.0% 9 Civil Defense Fund 6,000 6,000 0 0.0% 10 Alarm Board Fund 208,000 210,250 21250 1.1 % 11 Audit Fund 40,102 42,570 21468 6.2% 12 Annexation Fund 330,000 325,150 4,850 -1.5% 13 Motor Fuel Tax Fund 11141,106 11713,695 672,589 50.2% 14 Local Motor Fuel Tax Fund 0 312,000 312,000 0.0% 15 Developer Donations 603000 60,000 0 0.0% 16 Developer Donations (Parks) 149,000 353,750 204,750 137.4% 17 TIF Fund 7023000 780,000 78,000 11.1% 18 Pa eant Fund 41000 4,000 0 0.0% 19 Tourism Fund 2261000 155,250 7j 0,7501 -31.3% Total Special Revenue Funds 23878,208 3,962,665 110843457 37.7% 20 21 22 Capital Project Funds 23 Recreation Center Construction Fund 7751585 576,235 199,350 -25.7% 24 Special Service Area #1A 0 0 0 0.0% 25 Special Service Area #4 16,847 16,123 724 43% 26 Capital Improvements Fund 1 70,471 91500 60,971 -86.5% 27 Local Streets Improvements 1 0 0 0 0.0% 28 Capital Equipment Fund 29,000 0 (29,000)1 0.0% Total Capital Project Funds 891,903 601,858 (290,045) -32.5% 29 30 31 Debt Service Funds 32 Debt Service Fund 1,087,670 2,350,326 1,2620656 116.1% Total Debt Service Funds 1,087,670 21350,326 11262,656 116.1% 33 34 35 Proprietary Funds 36 Public Works - Water 21672,805 2,7001520 27,715 1.0% 37 Public Works - Wastewater 51876,839 518280368 48,471 48% 38 Public Works - Uility 11047,410 11017,877 29,533 -2.8% 39 Capital Development Fund 371,500 371,500 0 0.0% 40 Marina Operations Fund 25,500 251500 0 0.0% 41 Utility Improvements Fund 41.847 18,215(23,632)1-56.5% Total Proprietary Funds 10,035,901 91961,980 (73,921) -0.7% 42 43 44 Internal Service Funds 45 Risk Management Fund 744,291 740,175 41116 -0.6% 46 Information Technology Fund 896,589 872,231 24,358 -2.7% 47 Health Insurance Fund 3,339,279 3,520,237 1802958 5.4% Total Internal Service Funds 41980,169 5,132,643 152,484 31% 48 49 50 Fiduciary Funds 51 Employee Flexible Spending Fund 601000 40,000 200000 -33.3% 52 Revolving Loan Fund 11250 900 350 -28.0% 53 Police Pension Fund 3,921,742 31138,306 7831436 -20.0% 54 Development Escrow Fund 0 0 0 0.0% 55 Retained Personnel Fund 75.000 75.000 0 0.0% Total Fiduciary Funds 4.057,992 30254.206 803 786 -19.8% 56 57 58mlotal All Funds JILL3 i 90 33 Snivirnary of Revenues and Other Financing Sources - All Funds Source 2020/21 2021/22 Change Change Do7711,499 Property Taxes 51693,632 51712,908 19,276 0.34% Sales Taxes 11,057,997 10,975,350 (82,647) -0.75% Intergovernmental Revenue 41353,509 51065,008 16.34% Licenses & Fines 11773,000 11628,500 (1443500) -8.15% Services Charges 11,028,868 11,147,504 1183636 1.08% Interest Income 11523,100 21046,650 5231550 34.37% Bond Proceeds - - - 0.00% Transfers 91626,435 91374,819 (251,616) -2.61% Other Financing Sources 31574,070 31491,251 (82,819) -2.32% Total 48,630,611 49,441,990 811,379 1.67% 2021/22 Budget Revenues by Source Property Taxes Other Financing..12% Sources Sales Taxes 7% Transfers 19% Bond Proceeds 0% Interest Income 4% Services Charges 23% Intergovernmental Licenses & Fines Revenue 3% 10% 34 Summary of Proposed Expenditures - All Funds OlExpense 2 A B Budget i C D E F G 3 1 Total Net 4 1 Bwdnel ansfers B d e 5 General Fund 6 Administration $2,038 589 $94,833 $1 943 756 7 Elected Offices 85 983 83606 77,377 8 Community Development 908,233 77,668 830,565 9 Finance Department 1,856 065 303,470 11552,595 10 Human Resources 268,821 10 884 257,937 11 1 Economic Development 402,922 181478 384 444 12 Police Commission 6 953 0 6,953 13 Police Department 10 808,335 29278 965 B 529 370 141 Dispatch Department 216793504 89,531 215899973 15 Public Works - Administration 435 669 42,655 393 014 16 Public Works - Streets 3 391,676 109,428 312829248 17 Total Parks and Recreation General Fund 2,594,447 25,477,197 259,944 31294,462 2.334.503 22,182,735 18 19 20 Sp eclal Revenue Funds 21 Band Fund 14,500 0 14,500 22 Civil Defense Fund 5 300 0 5 300 23 Alarm Board Fund 112 000 0 112,000 24 Audit Fund 45 125 0 45,125 25 Annexation Fund 310,000 210 000 100 000 26 Motor Fuel Tax Fund 11892,325 0 10892,325 27 Local Motor Fuel Tax Fund 500,000 0 500 000 28 Developer Donations 60 000 0 601000 29 Developer Donations Parks 13332,500 0 1,332 500 30 TIF Fund 7143835 22213 492,500 Pa en 3,90031 0 3,900 32 Total JTourism Fund Special Revenue Funds 256,000 5,246,485 990000 531,335 1 157,000 4,715,150 33 34 35 Capital Protect Funds 36 Recreation Center Construction Fund 732 365 190,827 541,538 37 Special Service Area #1A 0 0 0 38 Special Service Area #4 15,715 15,715 0 39 Capital Improvements Fund 10 000 0 10 000 40 Local Streets Improvements 0 0 0 41 Total Capital Equipment Capital Project Funds 0 756,080 0 206,542 0 5513538 42 43 44 Debt Service Funds 45 Total Debt Service Fund Debt Service Funds 2,350,326 21350,326 0 0 2,350,326 21350,326 46 47 48 Proprietary Funds 49 Public Works - Water 3,016 112 1 159,640 1,856,472 50 Public Works - Wastewater 6,518,913 685 369 5,8333544 51 Public Works - Utility 1,017,301 0 1 017 301 52 Capital Development Fund 150 000 150 000 0 53 Marina Operations Fund 43,000 0 43 000 54 Total Utility Improvements Fund Proprietary Funds 160,000 10,895,326 1,995,009 150.000 81900,317 55 56 57 Internal Service Funds 581 1 Risk Mana ement Fund 943,503 1 1 225503 921 sOOY 591 1 Information Technology Fund 1,0221230 1 1 6 857 1 1 1 015 373 60 Total Health Insurance Fund Internal Service Funds 3,520,136 51485,869 Q 1 29,360 31520,136 53456,509 61 62 63 FId clary Funds 64 Em to ee Flexible Spending Fund 40,000 0 40,000 65 Revolving Loan Fund 0 0 0 66 Police Pension Fund 21399,286 41075 213956211 67 Development Escrow Fund 0 0 0 68 Retained Personnel Fund Fiduclary Funds 75 000 0 75 000 21514,286 4 075 2 510 211 69 70 71Total All Funds $52,7279569 $6,060,783 35 Comparison of Budget vs. Proposed Expenditures - All Funds q B C D E F G H I 1Expense BudgetrFunds 2 3 4 5 Total Total 6 7 8 Budgeted Expenditures MO Budgeted Expenditures 2021/22 DMeLence Percentage gLangpe 9 10 11 12 13 14 15 17 18 19 20 21 General Fund lAdministration 1 Elected Offices Communll Development Finance Department Human Resources Department Economic Development De artmenl Police Commission Police Department Dispatch Department Public Works - Administration Public Works- Streets Parks and Recreation Total General Fund $2,241,464 103,276 9881849 18916,414 262,174 299,742 68953 1025761475 215973255 4260317 3,363,817 2 660,552 256443,288 $21038,589 85,983 908,233 11 268,821 402,922 61953 10,8080335 21679,504 4358669 31391,676 2,5940447 25,477,197 $2025875 17,293 80,616 , 61647 103,180 0 I 231,860 82,249 9,352 27,859 (66,105) 330909 -9.05% -16,74% -8,15% 3.15% 0.00 % 0,00%16 1 0.00% 2.19% 3.17% 2.19% 0.83% -2,48% 0,13% 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 Special Revenue Funds Band Fund 1 Civil Defense Fund Alarm Board Fund Audit Fund Annexation Fund Motor Fuel Tax Fund Local Motor Fuel Tax Fund Developer Donations Developer Donations Parks TIF Fund Pageant Fund Tourism Fund Total Special Revenue Funds 149500 50300 921000 43,605 335 000 1,207,810 0 100,000 482,500 2930835 31900 331,000 21909,450 14,500 51300 112,000 45,125 310,000 11892,325 500,000 60,000 1,332,500 714,835 34900 256,000 512462485 0 0 1 20,000 1 1,520 25,000 684,515 600,000 405000 850 000 421,000 0 75000 21337,036 0,00% 00000/0 1 21,74% 3A 0 7.46% 56,67% iIDIV/01 -40.00% 176,17% 143,28% 0600% -22.66°0 80,33% 37 38 39 40 41 42 431 441 45 Capital Project Funds 1 Recreation Center Construction Fund S ecial Service Area #IA S ecial Service Area 1t4A lCapital Improvements Fund ILocal Street Improvements Fund I Capital Equipment Fund Total Capital Project Funds 762,682 0 16,847 104,689 0 0 8841118 732,365 0 15,715 10,000 0 91 7581080 30,317 0 11132 94,589 0 (126,038) 3.88% 0.00 -6.720y(o -90.440yc 0,00% 0.00% -14,26% 46 47 48 49 1 Debt Service Funds Debt Service Fund Total Debt Service Funds 1.089,919 1,089,919 2,350,326 2,350,326 1,260.407 1,260,407 115.64% 115.64% 50 51 52 53 54 55 561 57 58 1 Proprietary Funds Public Works - Water Public Works - Wastewater Public Works - Utility110461410 1 Capital Development Fund Marina Operations Fund Utility Improvements Fund Total Proprietary Funds 29988,948 6,601,143 0 430000 0 10,679,501 3,016,112 6,5181913 1,0171301 150,000 43,000 150,000 1008951326 27,164 82,230 29,109 150,000 0 150,0001 2151825 0.91% 1.25% -2.76°/u 0,00% 0.00% 0,00% 2.02% 59 60 61 62 63 64 Internal Service Funds I Risk Mana emenl Fund Information Technology Fund Health Insurance Fund Total Internal Service Funds 929,503 9311087 3 338 0 51199,370 943 503 19022,230 3.520.136 604853869 14,000 91,143 181,356 286,499 1.51% 8.79% 5,43% 5961% 65 66 67 68 69 70 71 72 FId lary Funds Employee Medical Flexible Spending Fund Revolvin Loan Fund Police Pension Fund Development Escrow Fund Retained Personnel Fund Total Fiduciary Funds 60,000 0 2,2811713 0 75,000 2,416,713 40,000 0 21399,286 1 0 75.000 23514,286 20,000 0 117,573 0 0 97,673 -33,33% 0.00% 6,15% 0.00% 4.04% 73 75 r rNEW 36 enditures by Function - All Funds Function 2019/20 2020/21 2021/22 Dollar Change Percent Change General Goernment 31067,115 315931036 3,652,335 591299 1.65% Public Safety 141244,958 14,833,741 13,615,307 (1,218,434) -8.21% Public Works 12,197,917 121664,365 11,900,579 (763,786) -6.03% Culture and Recreation 2,9451832 312351359 31063,941 (171,418) -5.30% Capital Projects 3,6541872 21626,982 61100,653 3,473,671 132023% Comm. & Econ. Dev. 1,5021739 11515,442 11500,009 (15,433) .1.02% Debt Service 11657,965 11089,919 1 21350,326 11260,407 115664% Other 41414,7461 41305,780 4,481,136 175,356 4.07% Total 431686,144 1 43,864,624 1 46,664,286 21799,662 other 2020/21 Budget 10% Expenditures by Function* Debt Service \ _ 5% Comm. & Econ... Dev. 3% Capital Projects., 13% Culture and/ Recreation 7% Public Works 25% General Government 8% Public Safety 29% T H E FOX R I V Fiscal Year 2021/2022 Annual Budget Balance Summary 39 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 spreads)reet found at the end of this section titled "General Fund -Revenues, Expenditures and Fund Balance Summaty"for the following discussion. General Fund Revenue. Expenditure and Fund Balance SummarX In summary, FY21/22 proposed General Fund Revenues and Expenditures reflect total revenues of $24,178,312 (a decrease of $520,466 or 2.1% from the FY20/21 Budget amount), and total operating expenditures of $23,963,697 (a decrease of $174,191 or 0.72%, less capital, from the FY20/21 Budget amount). This reflects a net difference (revenues over expenditures) of $214,615. Importantly, this means that the proposed General Fund Operating Budget, as presented, is BALANCED. While COVID-19 has made many revenues volatile over the last year, the City has been fortunate to see recovery in many revenue sources. While specifics will be detailed in the discussion that follows, the primary reasons for decreases in revenues relate to projections for Local Sales Taxes (a decrease of $224,509), the projection for Video Gaming revenues (a decrease of $50,000), Fines and Forfeitures (a decrease of $114,000), Charges for Services (a decrease of $131,950) and Reimbursements related to charges for dispatch fees and internal fund transfers (a total decrease of $161,522). These are offset by an increase to Sales Tax Revenues, which is a primarily tied to Use Tax Revenues from online sales (an increase of $141,862). Also, Income Tax Revenue are estimated to increase ($159,253), but this will be discussed in more detail later as this revenue source will have to be watched closely as the State has proposed lowering this distribution by 10%. In regards to expenditures, Personnel costs are proposed to decrease by $1,591,344 (8.79%) due primarily to the movement of a large portion of Police Pension Contribution expenses to a Transfer Expense account due to the issuance of the Pension Obligation Bond. If this Pension Bond Payment was not moved out to a transfer account, the Personnel costs would have increased by $75,953 (0.42%) over the 20-21 Budgeted amount. 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 m customers. Notably, FY21/22 General Fund Expenditure proposed Contractual costs are $153,180 (6.79%) lower than FY20/21, Supply costs reflect an increase of $13,275 (1.38%), Other costs decrease $81,932 (7.03%), and Transfers reflect an increase of $1,638,990 (99.0%). Finally, the FY21/22 General Fund Expenditures, as identified in this attachment, do not include any transfers for Capital Improvement or Capital Equipment. As discussed as part of the Capital Improvement Program process, Capital Improvement or Capital Equipment projects implemented in FY21/22 will be funded through the General Fund Balance. All General Fund Capital Projects that are identified for funding in FY21/22 are discussed on pages 18 and 19 of this memorandum. Carrying the General Fund Revenue and Expenditure estimates through the end of the fiscal year (April 30t"), it is projected that the total General Fund Balance will be $8,186,345 (Column P, Row 43). As defined in the Fund Balance and Reserve Policy, the estimated required 120-day General Fund Balance Reserve would be $7,946,826 and so the amount projected is approximately $239,519 higher than the required General Fund Balance. As will be identified, the projected General Fund Balance will be reduced by capital improvement projects to be funded through the General Fund Balance so that is why there will not be a transfer made to the Capital Improvement/Equipment Funds this year (Road Program, Police Facility Improvements, Police Locker Room Expansion, Parking Lot Improvements, Police Vehicle Equipment, Parks Ball Field Machine, Downtown Streetscape Engineering (25%) and Barreville Road Culvert Wingwall Repair). Further, a reminder that the FY20/21 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 estimated 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. iron 0iin 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. 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) for operational expenses; 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 41 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. FY2O/21 Budgeted Revenues (Column 0) In FY20/21 total budgeted General Fund Revenues were $24,698,778 (Column 0, Row 26). Of this, $4,950,359 (20%) was from Property Taxes, $8,071,089 (32.7)% was from the City's 1% share of the State Sales Tax, $2,986,908 (12.1%) was from the .75% Local Sales Tax, and $2,834,160 (11.5%) came from the City's share of the State Income Tax. Revenues derived from these four (4) sources were budgeted at $18,842,516 or 76.3% of total General Fund Revenues. Of the remaining $5,856,262 (23.7%) in budgeted General Fund Revenues, $1,235,489 (5%) were from Charges for Services, $2,255,773 (9.1%) from Reimbursement for Services, $426,000 (1.7%) from Fines and Forfeitures, $238,000 (0.96%) from Licenses and Permits, $340,000 (1.4%) from Franchise Fees, $600,000 (2.4%) from Video Gaming, $280,000 from Telecommunications Tax (1.1%) and the remaining $481,000 (1.9%) came from all other sources combined. FY2O/21 Estimated Revenues (Column Q) The following estimated revenues are based on 10-months of actual revenues and then projected through the remainder of the fiscal year (April 30, 2021). 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, FY20/21 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 2021, 4- 5 months into the new budget year. At this time, estimated General Fund Revenues ai-e projected to be $24,655,772 (Column P, Row 26) or $43,006 (0.17%) lower than FY20/21 Budgeted revenues of $24,698,778. This reflects an estimated increase of $958,009, or 4%, from FY19/20 Actual revenues of $23,697,763. Notably, FY20/21 Estimated Revenues, when compared to FY19/20 Actual revenues and FY20/21 Budgeted revenues, highlight the following; • (Row 10) State Sales Tax revenue is projected to be $125,618 (1.60/) lower than budgeted and $134,648 (1.7%) higher than the FY19/20 Actual amount. • (Row 11) Local Sales Tax revenue is projected to be $183,805 (6.2%) lower than budgeted and $160,245 (6.1%) higher than received in FY19/20. It is important to note that in July 2019 the Local Sales Tax rate was raised by 0.25% and FY20/21 is the first full year with this higher rate. 42 • (Row 10 + Row 11) Combined, total Sales Tax revenue is estimated to be $309,4.23 (2.8%) lower than budgeted and $294,893 (2.8%) higher than the FY19/20 Actual. State Sales Tax have shown significant signs of an economic recovery since the beginning of COVID49, but are not increasing at rates seen prior to COVID-19. 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 the same amount as budgeted and $178,552 (6.7%) higher than FY19/20. • (Row 17) Video Gaming revenues are estimated to be $429,026, or $170,974• (28.5%), lower than budgeted and $104,321(19.6%) lower than FY19/20. • (Row 20) Fines and Forfeitures revenues are estimated to be $165,478 (38.8%)lower than budgeted and $88,553 (25.4%) lower than FY19/20. • (Row 21) Charges for Services revenues are estimated to be $327,822 (26.5%) lower than budgeted and $283,450 (23.8%) lower than FY19/20. • (Row 22) Reimbursements for services revenues are estimated at $1,101,360 (48.8%) higher than budgeted and $1,284,740 (62%) higher than FY19/20. This is due to the CURES/CARES Act reimbursement for COVID49 eligible expenses. • (Row 23) Interest Income revenues are estimated to be $120,000 (85.7%)lower than budgeted and $132,344 (86.9%) lower than FY19/20. In summary, FY2O/21 Estimated Revenues are projected at (t43,006 (0.17%) lower than budgeted primarily due to State and out Sales Tax receipts, Video Gaming receipts, Fines and Forfeitures, Charges for Services, and Interest Income. When compared to FY19/2O Actual revenues, total General Fund Revenues increased $958,009 (4%). FY21/72 Proposed Revenues (Column R) FY21/22 Proposed General Fund Revenues represent a net decrease of $520,466 (2.1%) from FY20/21 Budgeted revenues and an increase of $480,549 (2%) from FY19/20 Actual revenues. Highlights of changes to General Fund Revenues proposed for FY21/22 include: • (Row 9) Based on Council action to freeze the property tax levy, Property Tax revenues are estimated to be flat over the FY20/21 budgeted amount. • (Row 10) State Sales Tax revenues are proposed at $8,212,951, $141,862 or 1.76% higher than FY20/21 Budget. This is primarily due to the increase in Use Tax from online sales. 43 • (Row 11) Local Sales Tax revenues are proposed at $2,762,399, a decrease of $224,509 (7.52%) from the amount budgeted in FY20/21. • (Row 10 +Row 11) Combined State and Local Sales Tax revenues are proposed at $10,975,350, a decrease of $82,647 (0.75%) from the FY20/21 Budget amount. • (Row 12) State Income Tax revenues are proposed at $2,993,413, an increase of $159,253 (5.62%) from FY20/21. Regarding State Income Tax revenues, please note the following. o The Governor has proposed a 10% cut to the Local Government Distributive Fund (LGDF) which includes the Income Tax distribution. This would mean Income Tax revenues would decrease by approximately $299,341. o The Governor has also proposed to close or modify corporate tax loopholes which will provide local governments with additional LGDF disbursements and should offset the 10% decrease. o Staff will continue to watch these developments closely in case expense adjustments need to be made in order to offset the decrease in revenue. • (Row 14) State Telecommunication Tax revenues are proposed at $270,000, a decrease of $10,000 (3.57%) from FY20/21 due to declining revenues over the last few years. • (Row17) Video Gaming revenues are proposed at $550,000, a $50,000 (8.3%) decrease from FY20/21 Budget amount. • (Row 20) Fines and Forfeitures revenues are proposed to decrease by $114,000, or 26.8%from the amount budgeted in FY20/21. • (Row 21) Charges and Services revenues are proposed to decrease by $131,950, or 10.7%from the amount budgeted in FY20/21 due to charges for parks and recreation programs as well as internal fund transfers. • (Row 221 Reimbursements which includes the Police Dispatch Center revenues derived from partner and customer agencies served through this facility, police impound fees, and other miscellaneous reimbursements are proposed to decrease $161,522 or 7.16%. • (Row 23) Interest Income is proposed to decrease (t120,000 (85.71%) due to declining interest rates. In summary, FY21/22 Proposed Revenues are $520,466 (2.11%) lowerthan budgeted in FY20/21 and $477,460 (1.9%� lower than FY20/21 Estimated revenues. The primary reasons for the proposed decrease include a decrease in the City's Home Rule Sales Tax ($224,509), a decrease in the Telecommunication Tax ($10,000), a proposed 8.3% decrease in Video Gaming revenues ($50,000), a decrease in Fines and Forfeitures Revenues ($114,000), a decrease to Charges and Services revenues ($131,950), and a decrease to Reimbursement Revenue ($161,522). These decreases are offset by increases to State Sales Tax ($141,862), the City portion of the Income Fax ($159,253), Franchise Fee revenues $10,000 (2.94%), and Licenses and Permits revenue $19,500 (8.19%). 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. 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. FY2O/21 Budgeted Expenditures (Column P) In FY20/21, total budgeted expenditures (capital and operating) were $25,443,288. Budgeted capital expenditures were $1,305,400 and budgeted operating expenditures were $24,137,888. While this amount reflected an increase of $1,516,103 (6.3%) from the FY19/20 Actual expenditures (Column N, Row 35), this difference was due to Capital Improvement and Capital Equipment expenditures as well as the addition of two police officers and other personnel adjustments. FY20/21 Estimated Expenditures (Column Q) In general, the City Administration -including Department Directors, Superintendents, and 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 was especially true during FY20/21 as we were challenged with managing the impacts of COVID49 on municipal revenues and, related, expenditures. For FY20/21, operating expenditures are estimated at $22,775,466, or $1,362,422 (5.6%) less than the budgeted amount of $24•,137,888. Highlights of changes to FY20/21 Estimated Expenditures include. • (Row 29) Reduced Personnel costs of $583,456 (3.2%) resulting from early retirement offerings and positions being left unfilled. 45 • (Row 30) Contractual costs are estimated at $350,248 (15.5%) less than the original budget. • (Row 31) Supply costs are estimated at $277,578 (28.8%) less than budget. This is largely due to lower costs in the Parks and Streets Division purchases. • (Row 32) Other estimated expenditures are estimated at $77,753 less than the original budget. • (Row 33) Capital Outlay expenditures are $577,5481ess than the original budget, but some project expenses are rebugeted for FY21/22 for incomplete projects. Note: City Administration anticipates changes to FY20/21 Estimated expenditures due to Increases or decreases in revenues and expenses through the end of the fiscal year. FY21/22 Proposed Expenditures (Column R) FY21/22 Proposed operating expenditures represent a decrease of $174,191 (0.72%) from the FY20/21 operating Budget amount of $24,137,888. Highlights of changes to General Fund Expenditures proposed for FY21/22 include: • (Row 29) Personnel costs are proposed at $1,591,344, or 8.79% lower in FY21/22 than budgeted in FY20/21 due primarily to the movement of a large portion of Police Pension Contribution expenses to a Transfer Expense account due to the issuance of the Pension Obligation Bond. If this Pension Bond Payment was not moved out to a transfer account, the Personnel costs would have increased by $75,953 (0.42%) over the 20-21 Budgeted amount. Personnel costs include salaries, overtime, health/dental/life/vision insurance, FICA, IMRF retirement, and uniforms. There are a number of reasons for this increase. 1. Personnel costs related to salaries only for employees covered by collective bargaining units - IUOE Local 150 (Public Worlcs, Parlcs employees), FOP Unit 1 (Police Patrol), and FOP Unit 2 (Dispatch) - account for a $36,346 decrease in salaries from FY20/21 to FY21/22 due to positions not being filled after retirements. 2. Police Pension costs are proposed at $2,325,603, ($1,667,297 is a transfer to the Debt Service Fund to cover the Pension Obligation Bond) an increase of $93,861. 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 issued the Pension Obligation Bonds to set the City up to be 100% funded by the required deadline of 2040. 3. Non -bargaining unit employees and Police Sergeants salaries account for a total decrease $37,580 of the Personnel costs due to positions not being filled after retirement. Wage increases are included for Police Sergeants and other non -bargaining employees based on a combination of the previous year's Consumer Price Index for All Urban Areas (CPI-U), which was 0.9% in 2020, and an additional merit increase of 2.1% based on performance evaluations. 4. Total Benefit costs are proposed to increase $59,337 due to increases to insurance costs. • (Row 29) Contractual costs are anticipated to decrease by $159,180 (7.05%) from the amount budgeted in FY20/21 due to the removal of contracted snow removal and street sweeping. • (Row 30) Supplies expenditures are proposed to be increased by 1.38% ($13,275). ® (Row 31) Other expenditures are anticipated to increase by $1,639,892 (99.06%) due to a transfer to debt service for the Pension Obligation Bond. 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 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. Onetime revenues shall not be used to fund current operations." This level of fund balance shall provide the capacity to: �y� • 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 FY20/21 Budget includes a beginning fund balance of $71033,891 (Column P, Row 6) based on FY19/20 audited financial information. Based on FY20/21 budgeted revenues, operating expenditures, and capital expenditures (which were funded with fund balance), it was anticipated that the ending fund balance would be $6,289,381(Column P, Row 43); the estimated ending unassigned 120 day fund balance at $7,946,826 (Column P, Row 44); showing a shortfall of $1,657,445 (Column P, Row 45) in developing the FY21/22 Budget. In fact, even with lower than anticipated Revenues ($43,006), the ending Fund Balance is anticipated to increase by $1,152,454 due to lower than budgeted overall Expenditures ($1,939,970). The FY21/22 Budget then identifies an estimated beginning fund balance of $8,186,345 (Column R, 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. oaoa000�MInIn 0000 O m N n d• r-I o h m m m h N In In Co N m o ry ry 1n r! o n ry ry ry m I� ry m o o to o N rl m r ri CJ I�1 O r m d• O N O M n M M N m d• N rl O O 0 0 0 0 0 m% O O W m O to O O O O O O N al IO O N IO t� d' M m O N O m m In In d• In rl O N a~o IM-1 V rmi v IM.I .N.. 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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 of 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 increase by $108,625 or 11.5% in FY21/22 (Column P, Row 56). Salary/Benefit costs are identified to increase by a net of $92,402 or 20.91%which includes an additional full-time building maintenance position ($67,637), Non -Bargaining Unit increases of $7,322, Bargaining Unit increases of $9,328 and Benefit increase of $8,115. Contractual Services expenditures -which includes the mosquito abatement program, participation in the countywide Dial -A -Ride program, and general engineering consulting are identified for a net increase of $45,000 (56.25%) due to past expense history (Row 21). Corporate Legal Fees (Row 22) include the City Attorney, Traffic Attorney and Collective Bargaining representation and are identified to decrease $19,000 in FY21/22. Supplies expenditures are proposed to decrease by $1,500 (Column P, Row 39) and Other expenditures - which includes Administrative Expenses and internal transfers for Risk Management and Information Technology - is proposed to increase by $1,973 (Column P, Row 45). Elected Officials (100.02) The Elected Officials budget is proposed fora $17,293 decrease, or 16.74%, based on past history and the use of the Administration budget for Elected Official expenses (Column P, Row 37). Community Development (100.03) The Community Development budget is proposed decrease $80,616, or 8.15% (Column P, Row 45). Salary/Benefit costs are budgeted to decrease by $65,535 (8.11%), which includes one position that will not be filled due to a retirement. Contractual Services are identified to decrease by $10,600 (12.24%) to better match historic spending. Supplies will decrease by 51 $5,000 (12.66%), and the internal transfer for Information Technology will decrease by $1,481. Finance (100.04) Salary/Benefit costs are anticipated to increase by $18,939 (4.17%) due to Non -Bargaining Unit increases of 3% and higher insurance costs. A vehicle loan was started in FY20/21 and it is anticipated the costs will be $284,568 in FY21/22 which is $65,432 lower than the amount budgeted in FY20/21. Human Resources (100.05) Salaries/Benefit costs are budgeted to increase by $6,647 (2.54%) which is primarily due to salary and insurance increases. Contractual Services increase by $60 (0.17%) while Other Expenses for Information Technology transfers decrease by $308 (2.75%). Economic Development (100.06) Salary/Benefit costs are budgeted to increase by $8,752 (3.5%) due to salary and insurance increases. Contractual Services increase $95,000 (475.0%) for economic incentive grants that have been approved or are anticipated to be approved. Purchase of Services — Information Technology expense decrease by $522. Police (100.22) The Police budget is proposed at an overall increase of $231,860, or 2.19% from FY20/21. Salary/Benefit costs are identified to decrease by $1,418,469 due to the movement of Police Pension costs to a transfer to deb service account ($1,667,297). If these costs were not moved, the Personnel costs would have increased by $248,828. Increases include $81,095 for sworn salaries, $12,486 in non -sworn salaries, and $64,223 in health insurance benefits. These increases are offset by a decrease to part-time salaries of $17,784 due to moving the part-time cleaning salary to Administration. Of note, FY20/21 Sworn Overtime is estimated under budget however this is due primarily to COVID49 and decreased need during this time. For FY21/22 it is anticipated that moving to Phase 5 Mitigation will result in increased events, activity and need for overtime at previous levels. 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 committed to full funding by 2040 which is why the City issued the Pension Obligation Bonds to bring this funding under the City's control with the anticipation that the City will save money. Contractual Services increase by $25,150 due to a contract for radio purchases. Supplies decrease by $23,875 due to lower gasoline usage/costs and lower small equipment needs and the Transfer to Information Technology decreases by $12,8439 sz Dispatch center (100.23) FY21/22 represents the fifth 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 FY21/22 budget has been presented and approved by the partners of the dispatch center. The total amount proposed for the dispatch center in FY21/22 is $2,679,504. The most significant increases are for Salaries/Benefit costs ($81,312) due to contract increases and the increase to insurance costs. Asa reminder, this amount is offset by more than $1.8 million in reimbursements 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 $9,352 (2.19%) due to increases to Salaries and Insurance costs. Public Works Streets (100.33) The FY21/22 Public Works Streets budget is proposed to increase by a total of $27,859 (0.83%) from FY20/21. Salaries/Benefits are proposed to decrease by $334,452 due to the elimination of three positions through early retirements. Additionally, Contractual (Row 21) costs have been decreased by $177,000 to account for eliminating contract snow plowing, street sweeping, and contract asphalt and concrete work. Repair and Maintenance Costs (Row 23) have been decreased by $50,000 due to purchasing of a few new vehicles to replace aging vehicles. Materials and Supplies costs are proposed $56,900 higher due to moving salt purchases from the Motor Fuel Tax Fund to the Streets Department. Capital costs have been added to the Streets Department in the amount of $525,000 for the 2021 Road Program. 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 the FY21/22 in the Parks and Recreating budget is proposed to decrease by a total of $66,105. Salary/Benefit costs are identified to only increase by a total of $4,346 (0.27%) due to lowering Seasonal Salaries with the anticipation of decreased programming in the upcoming year; Contractual Services to decrease by $54,690 (10.58%) for lower summer camp and general programming expenses; Supplies to decrease by $12,000 (5.66%); and, Other costs to decrease by $3,761 due to a decrease to the Purchase of Services Information Technology Transfer. 53 Fiscal Year 2021/2022 Annual Budget Administration 54 General Administration - Overview The General Administration Budget contains personnel and operational functions related to the provision of general administrative services and, beginning in 4Y19/20, includes capital projects expenditures from the General Fund Balance. Beginning in FY18/19, due to operational/department restructuring, economic development and human resources functions were 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 and, starting in FY19/20, all Contractual and Repair and Maintenance costs related to these activities were also been transferred to the Community Development Budget. Finally, capital projects to be funded through the General Fund Balance are accounted for in this fund. The Office of the City Administrator, which includes the positions of City Administrator and Deputy City Clerk, 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. 55 General Administration - Organizational Chart 56 General Administration - FY20/21 Accomplishments • Coordinated overall municipal response to COVID-19 Pandemic which, most importantly, involved management of the FY20/21 Budget to be able to address revenue shortfalls and expenditure reductions. This resulted in the City being able to end the fiscal year in a sound financial position without the need to eliminate services, reduce staffing, utilize General Fund Fund Balance, or significantly impact capital needs. • Oversaw effort to coordinate with the McHenry County Department of Health to establish the first COVID49 mass vaccination facility in McHenry at the former Kmart building on Richmond Road. • Directed development of a 20-year Community Investment Plan to replace the 5-year Capital Improvement Program. This project is being spearheaded by Public Works Director Troy Strange and will be implemented in FY21/22. • Despite the economic impact of the COVID-19 Pandemic, developed and presented a balanced operating budget to City Council for FY21/22. The budget also includes a more than $2 million local road program, funded primarily with Motor Fuel Tax funds, for the first time in City history. • Directed demolition of the former Central Wastewater Treatment Plant for future redevelopment opportunities. • Work with Department Directors to develop departmental succession plans. 57 General Administration- FY21/22 Goals & Objectives • Complete development and implementation of the Community Investment Plan. • Continue engagement with the Illinois Municipal League and other stakeholders to monitor legislation at the State level that may impact municipal funding as a result of the COVID49 Pandemic. • Direct development of a Request for Proposals for the former Central Wastewater Treatment Plant site and developer selection and negotiation process. • Complete steps necessary to extend the Downtown Tax Increment Finance District. • 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. • Continue to evaluate and identify alternative revenue sources. • Onboard newly elected officials and coordinate with the Mayor for the holding of a strategic planning session. • Coordinate bi-weekly Development Coordination Meetings to ensure multiple municipal departments and Mayor are on the same page" regarding commercial, residential, retail and other projects. 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Ln LO M In m M O L1'1 O Ln M W 0 Z M d' 'd O N t� � ON al %,D N M N M N M c}' M 00 M m Ln 00 itM 00 Ln O n Qu O h to d' N h M Y M 0�1 N Ln co O Ln h h rl N O� N d' M CO ' ' ' 00 co H O V-f M %40 co Ln N O h M LO 'O 'O N �O' M N m 'd' LO O klo l0' — O% L-1 d' M O L\ �o M L-1 N G � � u � F p • 0 m � �N i Q' U U 0 W cu a W p a a o o L. a � q W N ti vui O bA u Lam, u o id oL 7 L) OF w w EO- w� w vbi [w a F O O O O O N O O O O O O r-1 Ln Q t� d' N N CD O O O O O N N N m 0� O� Li N M 10 h O� kD ON O% 00 00 co 00 0o 00 ml owl MI MI MI d'I d'I V'I 'd'I d'I 'd'I 'tl d'I d'I Lnl Lnl Lnl Lnl Lnl Ln m Fiscal Year 2021/2022 Annual Budget Officials 61 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 Cleric. 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 ofthe City Council is expressed during regularly scheduled City Council Meetings (1st and 31dd 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 Cleric, 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. Tile City Cleric is also responsible for records management of the municipality. 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V • O c\n CU U m x !s url V1 aL Lro Lro (0 CD cy b a)G z p p W ro p x '~ w IA W ro cz N u P o O P a) � tJ E- •� a�i �-' .. 0 '� u aL N d) .o W w G cbjD �ua U to o cn v� ro O a a ro o E- a G m '� n F-u F14EUE- Ln Cd N x Q a w F a. E- O O O O O O O O O O O O O O]Q4 O O O N '� ri ri ri N M d' ri N r-1 N M r-I N M r-I c--1 d' N Q V O N M M N O� - d' d' d' W O lP lfl M 61 LnlD r co M O N m ItLn lD 1� co Ol O c N ro I d' I Ln tD I� N N N N N N N N N N m M M m M M m m 63 Fiscal Year 2021/2022 Annual Budget Community Community Development now 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 City of McHenry consists of a City Planner, Building Inspector, Plans Examiner, Plumbing Inspector, and a Code Enforcement Community and Officer. The administrative staff within the department Economic Development includes two Administrative Assistants and an Office Assistant, The Community Development administrative staff is also tasked with handling day to day operations at the main counter, this incudes payment of water bills and answering general questions. Building grounds and maintenance for the Municipal also falls under Community Development, this division consists of one full time maintenance position and one part time cleaning position. 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. 65 Planning &Zoning City Planner Cody SherriF Community Development Director Ross Polerecky Administrative a Assistant Assistant Peggy Vlcek Lynn Martenson Office Assistant Julia Heil Duilding Inspector Dave Watkins Plumbing Inspector (PT) Guy Smale Building Code Inspection Enforcement Code Enforcement Plans Examiner Officer Dan Tonyan Jake Marino Duilding &Grounds Maintenance John Cummings Buzz Frett Community Development- FY20/21 Accomplishments • Continued to provide exceptional service to the community during the COVID pandemic while maintaining a safe and healthy working environment • The issuance of over• 100 single and multi -family homes • Worked with Cal -Atlantic in purchasing 13 building pads in the Legend Lalces neighborhood one subdivision, this will complete this multi -family subdivision. • Continued efforts to digitize historical building documents through the use of Laserfishe • Successful in having multiple vacant buildings demolished leading the way to potential new development. • Multiple text amendments to the zoning ordinance to include, fences, landscape screening, accessory structures and administrative variations. • Creation of a new development portal on the website, this allows for residents and other to have updated information on development in the community. • Implemented in house GIS mapping • Worked with CMAP on a Fox River Corridor Plan • Developed an RFQ for a total downtown streetscape program • Developed a formal development review process • Many notable construction projects were started in this fiscal year to include: -Cedarhurst longterm care facility -Continued Improvements at Northwester Community Hospital -Continued improvements at Watertower Marina Thortons Gas Station 67 Community Development - FY21/22 Goais & Objectives • Consolidate our G[S maps into one functional package that can be used by all individuals in the City with restrictions for editing and viewing rights on certain layers (i.e. water sewer) • Continue efforts to redevelop the Water tower Marina site. • Update building codes • Setup BSA software flow chart for planning items and work to integrate G[S into BSA. • Comprehensive review of all planning forms. • Retire the Integrated Design District Zoning Designation and adopt a PUD ordinance. • Begin the process of updating Comprehensive Plan. • Continue to provide a High level of customer service to residents and businesses. • Focus on continuing education of employees within the department to ensure that we provide the highest level of service possible. • Worlc closely with Economic Development to continue efforts to draw development to the City of McHenry. • Worlc with the Parlcs Department and Public Worlcs to finalize the Downtown Streetscape Masterplan. • Explore options and start planning for an overhaul of the comprehensive plan. Community Development - FY21/22 Performance Measures Item Goal Description Proposed Did staff review the new Review and adopt 2018 building code to ensure Adopt and enforce the 2018 Update Building Codes International Building they fit in with Community International Code Councils Code set Developments goal and building code set objectives Is the PUD ordinance laid Retire the Integrated To replace the IDD zoning out in a fashion that it easier for To have a PUD ordinance in Design District Zoning Designation and adopt a district with a more up to makes potential developers to place by the end of PYZ1/22 PUD ordinance. date PUD ordinance follow and suit the city's needs To use education and face Are code compliance Continue a high level of Code Enforcements efforts to face contact with violations being mitigated compliance in the code residents to increase code and closed in an efficient enforcement department compliance manner To continue to digitize Digitize, label and file building documents thus documents to create a Digitize historical building eliminating paper and more efficient method of 60% of historic documents documents creating an easier more searching reviewing old transferred to Laserfishe efficient way to review documents these documents Explore grant To obtain a useable planning Downtown Streetscape To finalize Downtown opportunities to help fund document in order to help Masterplan Master Streetscape plan construction of the with future funding downtown streetscape opportunities. Review existing comp plan Develop an attainable goal To have a better Comprehensive Plan and research available and timeframe to establish understanding of costs and to develop a new companies that can create a new comprehensive plan processes comprehensive plan a new plan 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 N Mt O �--1 M N N r-I 00 O O O O O O O d' h O O 00 O O t� LO M O 00 00 H t-1 O O O O O O O O O N LD O O 00 A d' M M t� co 00 r-1 co t� o In O O O O O (V %,O O O N N N ' ' 'd' CD O In Ln O ' O ' ' ' ' ' CD O cm) ON LD %D lD %44 d r-1 O N M CD O O O O ON 00 .-L N kD LD O% N M �I In O LD O v � � v �o v v O p d m `I �n ko v a% ' ' L� O m 0\ N Q\ O m O O O O O Cl O O O O O O d' O 00 d' %40 M W O %�o O O O O O O O O O O O O 00 00 Ln fn ko ON Q` 00 O r-I O Ln O O d' O O O O Ln O T--1 '-1 N .--I Mr-1 N lf1 o% r-I M k4o N rl LL N M O% d' Ln Ol V-I 0� N Co ' Ln 00 00 Ln t� O Ln M N L-1 LD m N m O r-I LO H L� h d' 0� N O m Ln O O� ri N N 'd' �o M O O N <h %D N O M M 'ch 444 00 0� O � O N O V-I M �D N re) Ln r [� Ln O O O O r1 ' ' <}' %,D 00 Ln N o� O O O ' O O O O O O TMA %�D d' O Ln O oo N O O O O O O O O O O O O O 00 h h M 'd' Lo 0o O LD N O O O O cr O O LD O Ln O N N N `-I N-1 ' ' M Ln N to Z d' N 'd' � 00 Ln 03 M Ln �i (\ n M M ' ON Ln m W O N M m 'd' �o LD m Ln 00 O d' Ln co 00 d' M N Ln L� h oN Ln d' to Nt N LD M d' O% d' 'd' LD h L� M N O� N M W LD lf1 N O O M N 00 cr d' Lo M .1 00 LO M kD O M Ln %D N l� N c-I O t j N t-1 Ln ' N ' h N 00 M A 00 N %D M M M d' %D N 0� N O O 941 N Nt d ON d e-1 L� 6% TMI d' L� 00 V=q M N Ln rml 00 r-I Ln LD Ln V=i I\ M L-I 00 M rl ON O r-I v N r-I r=4 r-4 cr Y c Ln M O H LD N t\ M O h N M 0o O d' 00 ' LD M O h O� N l� H N 00 Ln N H n O M M Ln %D L� d' 00 H O M 00 'd' Lo N ON h O 00 w LO 00 r-I � N N M LD to L� 00 h N 00 M N in l; r-I n N 'd' m LO Ln kD 'd' h M Ln Ln c-I d' h M M '-I N N �1 M LO N �--I M �Oi b N w U 1 N W m z bA u a w � w u a U Ly :n rO-I F4 u u CD u COw a '� ,-� C) a a c 3 w °y' b v o d a L7 0 Ia a� 0 bG u � Q d �' 0 ' z ObiD p.p p q 0 M G O oC bo �� W a a°u4 .a IV WD L 0 c0 Ln 0 id G o F q fy °a' a .0 H u o co L��a ai at aU w 'Ln v rx G ayi b m cz O o ::s o w Ln Ln O x A :a w O F U W a. F a C4 A F F a E- O C7 o 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 Q O O O M M M M 'd' 'd' m T-1 .-I M M M M "t d' d' "t '-1 N N 0 d C� 'd' 'd' 't cp d' d 'd' Ict LO Lo Ln Lo Lo Lo Ln Ln Lo Ln 1%0 LD U ' Ln to I� CO Ol O ko 00 Ol N N N N N N 0:) CD M iM- tom- NO N N M M M M 0 0 O �o o �,o O (V O O O O O LO N t M Q� ri h M Ln r-I O O O Ln N O� zl�l� �I NI N d' �D In O� YI �I N O OO M � h 0 6 O �D t� O klo W O N Ca 00 co <h d v v NI lnl m CD NI InI [� INILn ON LnIt, M co ro N d �4O I �o N N 'a'I � u a> � F m a � � a U u u_ F w a ) a) cx a � cn cn w a o o H • a cn .a y N O w w (Ti U U � O ca � � O • a a. F p O O N Q - O O N m m m m� d V V Nt 71 II E A R T O F T tl E f 0% RIV Fiscal Year 2021/2022 Annual Budget 72 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: Responsible for management of financial affairs of the city, including budgeting and financial planning, and supervision of operations within the department. • 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. 73 Finance - Organizational Chart 74 Finance - FY20/21 Accomplishments • Issued Pension Obligation Bonds to significantly lower Police Pension costs over the next 20 years. • Refunded the 2010C Sewer Bonds to save the City $295,000. • Completed analysis onwater/sewer usage and capital rates in order to ensure operating and capital expenses are covered. • Working to outsource water/sewer bill printing to offer full page bills with more details for residents. • Secured $1.3 Million in CURES/CARES Act funding to offset costs due to COVID-19. 75 Finance - FY21/22 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 within 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. • Begin using Tyler Content Manager within the finance software more to scan documents in order to eliminate paper and streamline processes. • Submit FY21/22 Budget to the GFOA for consideration for the Distinguished Budget Award. 76 Finance - FY21/22 Performance Measures Performance Performance Performance Proposed Item Goal MeaSUre Develop an update Was the quarterly report quarterly reports and u dated and transmitted September 2021, December 2021, Quarterly Reports transmit to the p March 2022, and June 2022 a ro riate board. to the board quarterly? Develop and present a Was a balanced operating Annual Budget balanced operating budget budget presented for City April for City Council Council's consideration? consideration. Whether or not an An unqualified opinion issued on the Annual Audit Continually have an unqualified opinion has 21/22 audit presented to council in unqualified audit opinion been issued September or October of 2022 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 1GFOA budget award 77 o 0 0 0 0 0 0 0 0 0 M O N r1 d _ [� G r-1 O O O h M _. 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O O O N l0 M r/ � I Q I N M i i i C) i i i 4Q O O d' M O d' O Ln �-yLn Lnv fV N L� v ON O co Ln O LO OL O 00 p Lfl L� O N LO O M O Ln O` O N N O O m co N 00 O N M ri p LO d' O O O N M h OL In Lp O O In N M r1i N r-1 O% M ntN-1 N ap-4 rL O O 'ci' O O N Ln N O O LO O O N h LO z Ln Ln 00 QL N (� M ri a M O O O LO r-1 d' O O O Cl O N L0 OL '-{ 00 O O O N M d' Ln CIN p � rl Ln e-1 to Wt 00 M r,4 i M Cl O LO ON I O N ON O O N CO N M OL CDO N 00 `dam aN N'L O ]C N ` r, m r-1 Ln ID CO �) "I Cn ml MI MI MI rYI I d'I I 4 I d' I d'I d' I d'I d'I Lnl Ln Ln) Ln) Ln 79 Fiscal Year 2021/2022 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. 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. Human ResQ� �Y�PS The 21/22 budget year there will be a careful watch on all types of insurance, health, workers compensation, and liability. We only have projections at this time, but 2020 was a volatile year in the insurance industry and we will be as proactive as possible to mitigate claims and increasing rates. Human Resources -Organizational Chart Human Resources - FY20/21 Accomplishments • COVID-19a Creation of new policies and directives around COVID-19 protocols, reporting, FFCRA compliance and tracking. Managed 94 reported COVID incidents. • Retirement Packages. Had five employees take advantage of retirement packages saving the City $255,000. • IPBC. Completed a City wide health insurance dependent audit for all employees on City health I nsurance. This helps to contain costs and is required. 200 dependents audited. • Wellness. Ran a successful wellness program including biometric screenings earning the City nearly $20,000 in rebate money from IPBC. 88 eligible wellness participants. • Harassment Prevention Training. Updated policy and all current employees are trained. • New Employee Handbook. The new handbook is about to be published. • Family &Medical Leave. Coordinator Meyer has kept the City compliant managing 25 FMLA full time and intermittent cases in 2020 • NeoGov Perform Software. Implemented new performance management software including performance management scoring and competencies. Ready for test evaluations and crating a user guide. m Human Resources - FY21/22 Goals & Objectives • Performance Management. Finish implementing NeoGov Perform software and create our internal user guide. • Processes & Procedures. Create written record of all HR & Rislc processes • Risk Management. Develop electronic risk reporting forms in Laserfiche. • Benefits/Life Insurance. Adjudicate discrepancies in voluntary life insurance and audit monthly to ensure Benehtsolver contains correct data. • Training &Development, Implement NeoGov training software if approved in budget). This will allow more options for virtual training and integrate with performance management. Human Resources - FY21122 Performance Measures Item Goal Description Proposed , Performance Management Complete Implementation Test system, update based Implement Performance of feedback, roll out Mgmt. System Customize training and Provide training & Training & Development Implement new software make available development opportunities to toemployees employees Analyze and revise Verify compliance criteria foil Written record of Process & Procedures processes in HR dept. insurance, audits, etc. and processes Write o' update processes train necessary employees Eliminate different Use Laserfiche to create Rislc Management versions of form and online incident reporting Create one form usable by all implement one form for departments all departments. from Clean up discrepancies Analyze and update Verify all information is Life Insurance that exist with voluntary life insurance voluntary life insurance correct in Benefitsolver E� f ,• all ip, V 9 it It 11 I all aft • } .ti•" -Iwo y i.' "i4' jL,; •F J`t� A k. (. M � ' b ,f F r l 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 was established to account for expenditures. The Economic Development Department is the first point of contact with potential businesses, citizens and elected officials regarding business inquiries and potential new business opportunities. The department is responsible for effectuating orderly economic growth of the City, attracting, retaining and serving businesses and residents in the community. m Economic Development - Organizational Chart rr Economic Development- v 20/21 Accomplishments • Implemented 031110 business microloan program; • Obtained a $300,000 grant for Restaurant and Tavern Relief Fund; • Implemented the McHenry Minute business newsletter and video series, • Implemented the Commercial Incentive Matching Grant Program; Contracted a hotel study and coordinated available site visits with potential hotel prospects, • Recognized several businesses for years of service; • Created Shop-WDine website and coordinated promotional sponsorships and marketing efforts; • Coordinated needs and incentives to allow Jessup Manufacturing to build a 25,000sf expansion; and 55,000sf Brake Parts/First Brands Research and Development Center buildout; • Coordinated marketing efforts sharing the City's promotional marketing videos and campaigns to attract new residents and businesses; • Extension of TIF District; • Assisted in coordination of new BikeMC program to replace Zagster Bike Share Program; • Supported businesses throughout pandemic creating stability for businesses and a very low percentage of lost businesses as a result; • Visited over 50 businesses; • Opening of Ignite; • Assisted with Planning and Zoning Commission; • Coordinated forced annexation process throughout City; • Participated in Fox River Corridor Study. Economic Development - FY21/22 Goals & Objectives • Cultivate and develop relationships: real estate brokers, businesses, retailers, manufacturers, developers, attorneys, architects, engineers, etc,); a Maintain contact with retailers, developers, manufacturers, prospective business owners to assist in space needs and location preferences; p Promote City successes through Social Media: businesses expanding; new business, events, etc; • Maintain list of available properties; downtown, Richmond Road; demographics, socioeconomic and other data and make it easily available to all inquiries on the City website, • Maintain contact with Nicor and Com Ed as it relates to economic development and business assistance; • Worl< with Community and Economic Development Department (zoning, subdivision and coordination of development); • Facilitate Business Retention Visits with McHenry County Economic Development Corporation and State Department of Commerce and Economic Opportunity (McHenry County Workforce Network and Small Business Development Center); • Maintain List of City manufacturers, contacts, business type, space, etc; • Maintain comprehensive list of all businesses in the City to ensure prompt and accurate information sharing; • Work with State Department of Commerce and Economic Opportunity; McHenry County Economic Development Corporation; Intersect Illinois; McHenry Area Chamber of Commerce; Shah Center -Small Business Development Center and other partners in business assistance, site selection, expansion and retention; • Serve as assistant and back FOIA Officer/OMA; • Continue multi -faceted effort to retain existing businesses and attract new businesses to the City. • Worl< cooperatively with I<ey 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 assisted smaller businesses struggling to keep doors open, Witness business growth occur in all geographic areas of the City, on the City's major retail corridors, downtown, Illinois Route 120, Illinois Route 31 and in the City's business parks; Bike Sharing Program; Write incentive and annexation agreements and ordinances to facilitate and promote business attraction, retention and/or expansion, Work with McHenry County College/Small Business Development Center (business attraction and retention -MCC Manufacturing Breakfast), � Represent City in attending McHenry Area Chamber Mixers, Multi -Chamber Mixers; Ribbon Cuttings and Grand Openings for New Businesses; Continue to serve as member of McHenry County Public Transit Access Committee; Serve as board member of McHenry Area Chamber of Commerce; Attend McHenry County Workforce Network Meetings (serve as proxy for City Administrator), Coordinate Business Site visits; Continue to work with Downtown Businesses and Community Organizations (City, Chamber, Downtown Business Association and Businesses); Coordinate events across all organizations and joint marketing effort; Produce short business videos for Face book/Instagram; Be more active on social media, i.e. videos: McHenry Minute; and sharing business recognition milestone anniversaries-Instagram and Facebool< with pictures and videos; Worl< with Economic Development Commission in recruiting new businesses and promoting existing businesses; Implement a Commercial Incentive Grant Program; Worl< assertively with Developers in an effort to fill vacant storefronts in all areas of the City; 91 Streamline Economic Development website content for ease and attraction of new business developments Invite and introduce economic development staff and City to prospective businesses by attending all new business walk-through inspections when they are scheduled; Continue to participate in Fox River Corridor Study; Continue forced annexation process. 92 Economic Development - Performance Measures Ite A Goal Description Proposed 0 rL I I i L Visit/Talk to 40 Visit/Talk to 40 Number of businesses 40 existing businesses existing businesses; existing businesses Redevelopment of the Have site redeveloped Property being Redeveloped CWWTP former CWWTP redeveloped Expand the reach of the McHenry Minute newsletter and video series to highlight economic Expand reach of Place newsletter and development - McHenry Minute More people see video on different related projects newsletter and video newsletter and video mediums to expand and progress in series reach the city. Ensure that this is easily available to businesses and residents. Bring a hotel to the Have a new hotel built Hotel built Hotel City in the City of McHenry 93 - \ o \ 0 \ \ 0 \ \ 0 \ a 0 0 \ 0 \ 0 \ \ 0 0 \ 0 \ 0 \ 0 0 0 \ \ 0 0 0 \ \ 0 - O % O C O O O O O O Cl O O O M O O h L L In In N O N N N N O H O O N O O O O O O O ko O O \O O [� h 'd' M LO 'cI' O M M M CD O O ' y N Ncl� N N O CDO � M d A M N A —_ — O� M h In ID N N O O O O O I O N N_ _ 0� �D kD ID O In In O In O In O O N N N N d' ND h N h N N LO to O, In N 00 In v H kD O N ID D\ O [}' O O O O O O O O O Cl 00 OD In H d' 00 O H 00 O� O In O O O O Ln O O O I� I� m m ID N ON M 'd' O H m O In O d' M N In r-I 00 r-I (M N co In co M co In 00 00 00 M H N In H N H H H N H H M d' 00 �D ID H H w H In H H N Ln O fn O O w In d' 00 In O% M d' H Cl M O d' M N In M M In H cF' H M d' N M O 00 d' In N N N N Lr) IO r-1 N r-1 h' ON r4 H N r' I� O I� M H N d H H H H N 00 N O O O O O N m M N H m O O O O O O O In In h m 'd' H N 'd' O O O O O O O O O O O O ID O LO H In h IN O N O O In O h H N m O O ID ID H M H Oi O H M M M O ON ON Z h M H N d N M H H H N M H M d' N M In H d' m m LO h TMI 00 N O 00 co Q 00 In H 00 M H h In O 00 I\ N N N N In OD d' 'd' O H In H O ID ID ID d' I\ O% H ON M M In In N In I--'1 N 00 m m r-1 N M r-I it d' I� M H H M H N H H H N In 'd' 00 M r� N N a ko O H H O H N ko %No H d' 'd' H kD H O h h m 00 H I� ID N ID m IM N In h co 00 H ON 00 H H O d' �D N O d' ID O� N N M 00 r-1 In 'd' cn �i Ti N r-1 M O M M A H v' H N O N M H H N m - w v td 4' y N Eibh U F i q O Uo w w o w a i m z G [In a a�'i 0) _ u � � W w t D In W u u E N N N C cN 4 H N • PMOL. cd 4. O {. Co N Q N '17 N N F, W w W W LG o o H • v7i b ccd y Oa. .C-� .-O. � 0) N N y hO W bA 77 U O V) rn In O .C. wa¢ b o0 '09 u Ar w a s � U V id ro C al w N 0 'C � '� 0 F-F +�' ro F w 1U.4 I". F : O O O O t•. I. 7 O O O � O • O M x A .l j u. F U a. 04 A F F a. F O F w a. F O O O O O O O O O O O O O O CDO CDN Q O H H N M d' H N H H M H N M In H H N N M M 'd' �!' 'd' d' H N O� O� Cd d' d' d' <M d' d' d' In In In In to In In kD �D rn rn W �-- N m '� Ln lD I� m 61 O I- N M 'c}' Ln IO r� 00 m O r N m '�t In LO � OD O1 O r- N m t In lD c- N N N N N N N N N N M m M m m m M m Fiscal Year 2021/2022 Annual Budget Commission 95 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. 96 97 Fiscal Year 2021/2022 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 four main divisions of Administration, Support Services, Field Operations and Information Technologies (I.T.), 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 and the I.T. Division is headed by a Manager. These supervisors reportto 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 Sectio�t 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, selfAnitiated activities and addresses community concerns. Additional Units within Field Operations include; Field Training Unit, Canine Unit, Truck Enforcement Unit, Bicycle Patrol 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 }s the final component of the Support Services D}vision. 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. Information Technologies (I.T.) Division The I.T. Division provides not only the police department staff, but also City staff, services in regards to purchases, operations, maintenance, repair and replacement of information technology related programs, systems, software and hardware. soo Police - Organizational Charts Police Overall sos Police Administration soa Commaadcr of Flcld Operations Paul Funk Day ShIR AReruoon Shift Midnight Shift Sergeant Brian McKeen Sergeant Brian Aalto Sergeant Robert Lumber Day Shill Afternoon Shift Midnight Shift Sergeant Michael Cruz Sergeant Kelly Dunk Sergeant Pall irk PoIWorl Officer Officer Officer Officer Officer Officer ]III Foley Marc Fisher Lawrence Popp Omar Morales John Adams Richard Rewiako Officer Officer Officer Officer Officer Officer Jason Dunk Ryan Pardue Matthew Voelker Jack Zmmvalt Matthew Schmitt Robert Beaudoin Officer Officer Officer Officer Officer Officer James Harris Robert I<lasek Jack Zumwalt Joshua Conway& K9 Eli Roger Hendrickson Peter Mader Officer Officer Officer Officer Officer Officer Christina Noyes Roger Hendrickson Katelyn Lorenz Peter Mader Ashley O'Herron Katherine Zajac Officer Officer Officer Officer Officer Officer Henri Krueger Joseph Lopez Luis Pena Megan Carey TBD TBD Officer Officer Diana Hernandez. Susan Ellis Police - Investigations Section Tcleconununicattons Dispatch Center Supervisor Jennifer Synek Lead Teleconununlcators Justln Lclbach and Dcx[cr Barrows Day SItIR Commander of Support Services Ryan Sclante Night Shilt Records, Community Service OFRcers, Public Affairs, FOIA Records Clerk �� Records Clerk Marybeth Varvil ME Debra Shoemaker CALEA / Training ,. Community Service Coordinator ORlcer Stephanle Erb ,, David Porter Public Affairs Ofilcer �� FOIA 0(licer Michael Spohn Roger Pechous Telecommm�lcator �� Telernmmunicator Telecommunlcatar �� Telecomnunicatar Kathleen Gallagher �� Amy McKendry Tracy McNamara �� Gwendolyn Allen Telerommwticatur .� Telecammunicator Telecommunicator �. Telecomnxmicator Holly Neville .. Maria Jospeh Patricia Garrett ,. Tracy Vasquer. Telecotnnumiadur .. 'relecnnnnuniauor Telecannnunic,,uo .. TelccommuniwGrr Kelly Schmitt .. Grant Havens Brklgette Nolan ., Eileen Beidclman Telecommunicaun .. Telecommunicator Telecommunfcamr �. Telecommunicator Katherine Fitzi;erald .. Ryan Miller Kathryn Rile .. Tyler Hubbard Telecommumcatur .. Telecommunicator Trleconununk:�Wr .� Telecommunicator I<aitlinDurhand � hllchcleZuJewski Rcheccahiorrison TBD Information Technologies Manager Aaron Greve Information'1'echnologies (I: C) Specialist Infrn•nritiou'I'echnologies (L'C) Specialist Jeffrey Faerster Gorily Dullum Police - FY20ZU/21 Accomplishments Personnel New Hires • On August 19th, 2020 Rebecca Morrison started with the police department as a Telecommunicator. She is a graduate of McHenry County College. Rebecca has been with the Nunda Fire Protection District since 2011 serving as a Firefighter and EMT. • Michele Zujewski began her career as a Telecommunicator with the police department on October 1101, 2020. She is a graduate of the University of Illinois (Urbana -Champaign). Michele has been in the EMS field for approximately 10 years, most recently working with Medcor at Brake Parts, Inc. in McHenry. • On January 11a,, 2021 Joseph Lopez was sworn in as a Police Officer. He is a Niles North High School graduate and earned his degree from Illinois State University. Joseph had been a police officer with the Metropolitan Police Department in Washington D.C. since 2016. • Katherine Zajac was sworn in as a Police Officer on January 18th, 2021. She is a West Chicago Community High School graduate, served in the U.S. Navy from 2009 to 201S and has since been in the Navy Reserves. Kate had been a police officer with the Antioch Police Department since January 2019. Retirements • On December 131, 2020 Sergeant Eric Sexton retired from the police department. He had been with the department since September of 1998. Eric was the department's first Canine Handler serving with his partner Esta. • Telecommunicator Laura Cox retired from the police department on January 11th, 2021. Before joining the department in December 2020, Laura had been a Telecommunicator with the Woodstock Police Department. • On January 22nd, 2021, Officer Anthony Mucciante retired from the department. He is a McHenry Community High School graduate and served in the United States Air Force. Anthony started his career with the police department in March 1997. Training Training the police department staff was severely hampered by the COV[D-19 pandemic. Despite the lack of available in -person trainings, the police department adapted by using online platforms to ensure training mandates were met. Sworn officers and civilian staff members of the McHenry Police Department participated in over 3,100 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, Deputy Chief Walsh, Commander Funlc and Commander Sciame participated in the online version of 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. soy 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 2020 calendar year the McHenry Police Department handled 21,721 calls for service through dispatch and police services. The following list highlights types and volume of specific areas of investigation by the department. These investigations resulted in over 298 felony and misdemeanor charges being filed during the 2020 year. Homicide 0 ----- Sex Offenses 33 Robber 0 Burglary 17 Theft 138 Motor Vehicle Theft 12 Weapons Offenses 4 Domestic Disturbances 454 Drug Investigations 78 Fire Investigations 37 Death Investigations 48 Burglary to Vehicle 38 Juvenile Incidents 1 148 Mutual Aid During FY 2020/21 the McHenry Police Department participated in multiple mutual aid requests. Commander Sciame, Sergeant Ducak and Detective J. Prather participated in four taskforce callouts through the McHenry County Major Investigation Assistance Team (MIAT), which resulted in one arrest for 1st Degree Murder. 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 three vehicle fatalities. Public Safety Initiative During FY2020/21 the McHenry Police Department continued to take 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 2020 calendar year the McHenry Police saved 11 lives through the use of Narcan and assisted 14 people into the "A Way Out Program". Accreditation 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 continuous re -accreditation of the McHenry Police Department has proven that the agency 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 incidents. • Strengthened the agency's accountability, both within the agency and the community. • Limited the agency's liability and risk Community Outreach The McHenry Police Department, in an effort to accomplish the agency's mission, participates in many community outreach events each year. Due to the COVID-19 pandemic, all in -person events were suspended. Below highlights some of the more notable events that were able to occur in FY2020/21. Child Safety Seat Installations The McHenry Police Department has a team of four certified car seat technicians dedicated to providing education to parents and caretakers of young children. Members of the car seat team stay certified by acquiring continued education credits and demonstrating their use of proper skills and education techniques. Technician duties include offering free inspections of child's safety seats at both our police department and scheduled events. In 2020, the McHenry Police Department installed over 45 child seats and showed current parents and parents to be how to keep their families safe. Adopt -A -School Program In FY 2020/21, after the return of in -person classes, the McHenry Police Department continued the agency's "Adopt -A -School" program. This program pairs individual officers with specific grade schools with the community to increase awareness and safety within those schools. The program entails individual Day Shift patrol officers being assigned there own specific grade school. 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. Social Media Messaging During FY2020/21, the McHenry Police Department continues its efforts to reach community members through social media. These platforms disseminate critical information and also help us show the lighter side of the department's daily operations. Recognizing that many in and around our community utilize social media as an information source, the police department improved its efforts on Faceboolc and Twitter, increasing our followers from the previous year and having a reach of over 13,000 people on Faceboolc. 109 Since 2009, the McHenry Police Department has been using Nixie to communicate emergency messages in real-time. The police department currently has over 20,000 subscribers to this free service. Special Ol,�pics 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 Enfor•cernent 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. Despite the COVID-19 pandemic, our efforts helped to raise almost $3,000.00 for- the athletes of Special Olympics - Illinois. sio Police - v 2021/22 Goals & Objectives Below are the highlighted Goals and Objectives that the McHenry Police epat tment will focus on luring the 2021/22 fiscal year. • Continue to provide the highest level of police services to the citizens of McHenry. • Complete the pt ocess of developing a hiring list of highly qualified entry level candidates. • Continue with the depat tment's t enovation /expansion phases in order to meet the department's performance and usage needs. • Seelc and secure the highest level tt•aining opportunities for all agency membet•s. • Continue and expand the depat•tment's public relations/community involvement pt•ograms. • Continued support for overall community school safety through the School Resource Officet•s and the Adopt -A -School program. • Continue the depat•tment's Traffic Safety Plan in order to keep out• t•oadways safe. • Maintain fiscal responsibility and reduce any financial but•den 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 pat•tner with other organization such as MCAT, MIAT, NIPAS and ILEAS in an effort to share police resources and reduce operational costs. • Replace four police vehicles, all with appropriate emergency equipment. • Replace four in -squad computers. 111 Police - FY2021/22 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, 2021 to ensure the safety of the McHenry Community and totals stay the same oil see a reduction? its citizens. Manage police department To complete the FY 21/22 resources in all efficient by keeping expenditure at Annual Police Budget and effective manner April 30, 2022 or under approve approved police ensuring that community budget, needs are met. Create a safe roadway complete the 2021 system within the City by A reduction is traffic crashes Traffic Crash Roadway calendar calendar year with all enforcing traffic laws in investigated in 2021 as compared to Safety overall reduction in traffic order to create safe 2020, accidents. driving behavior, To improve the delivery of public safety services, primarily by; maintaining a body of standards, 1. Review and revise as needed To successfully review and developed by public safety all agency policies by practitioners, covering a revise policies in January 2022, Accreditation wide range of up-to-date accordance with new laws 2. Complete all required CALBA public safety initiatives; oil practices; Complete standard proofs and reports establishing and CALBA proofs and repots for the 2021 calendar year administering an as required. by February 2022, accreditation process; and recognizing professional excellence. 1. Improvements to community events such as; Child Safety Seat Installations, Coffee with Maintain a strong working relationship with the tlne Chief, School Safety, Adopt -A -School Program, An increase in attendance to all McHenry Community and Community Relations its Citizens in order to Garden Quarter community events, positive community Community Days, Special feedback and the launch of new maintain trust and Olympics Illinois, safety initiatives by April 2022. support in our mission to Expos and MCPOA Events serve and protect, 2. Continued improvement to Public Relations and Social Media Interaction. Provide the highest level Meet o• exceed all training Training of professional police 2020/21 McHenry Police requirements in the calendar year the lowest Department Training Plan. 2021, established by departmental services with liability o• risk to the City policy and Illinois State Statute. 112 and the Citizens who we serve. Illinois Police Training Act 50/ILCS 705/7 Arrest / investigation enforcement action of the Obtain a reduction in the amount of Reduce the amount of illegal sale and use of opioid (specifically herobn) overdoses Narcotics Enforcement opioid usage and o p ioids. Narcan and deaths in McHenry foil the 2021 overdoses. deployment Participation calendar ear. y in the "A Way Out" Program. See alternative ways to Annual review of all grant Awarded grant funding for traffic fund police related submission applied foil 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. 113 M O Ln O h h Ln O M O O N N m o LD Ln LO %lo O O N h co N d: d' Ln ri a� In O M O O M O M O O O M r-+ C> o o Ln Lri r j aN ri M o (y) d4 %,D o m o o r1 Lo m o o: Ln l ; r-I r-i M N %%D Q In d' ' O d' O rri ON co O L60 O 0� O O O O O O O OO (Y% 00 O kD Ln d' O N LD m O LO O O o O Ln O Ln d' O t� O l� d' `--' O O LO d'd' v O O N O r-1 rN-1 corr-1 M Ln N' N' LD r-1 N d' 00 M H m m ('r) In O Ln d N v v LO d' O M LO O O O O O O O O O O Ln Ln N N LO O O CDr-1 In O O m M d' O O at In O O O O O 00 O l� O d' Ln m O m O m M m LD N O O in r-1 m N O r1 OD Q% Lp Ln m d' d' O m N Ln n LO 00 N 00 N N r-1 1%0 N m n N N LD d' N d' N ri d' M d' Ln M Ln m ri Ln N Ln �t O M O N ri d' LD O H M LO [ 1 00 d N r11 O N d O m N O LD N M h r I O 00 W M d' r-1 qq:p I Ih d' d' m h O O d' d' ri M m N N' ri N ON d' O O h O LD r-1 M d;, a� N O ri In O a` h O M% h LO h M N N r-1 M er _ O d' LD 00 M O (N N M Ln d' r-I N r-I '-1 ri aN ri r-1 Lrj (\ N co O M M at H N ON M N N � r�-1 N LO N r-i N d N ON W O� d' O O O 00 LO In r-1 M M N O OL O O O O O O O O N Ln m O In ri m O O r-1 LD Z LO In M In d' r-I' O N N M r-1 Llj ri M h' t0 N O' t0 N LO M OLO bi N N O md' N m Ot� ONtt M to N Ln [\ ft N d N' O� O Lo N r-1 d' kD m L� m m M d' ri ON d' m d' m O h N Ln LD N O` d' O m M r-1 M m Ln LD N O d' 00 LD t� M Ln O w O N kD ri Ln O O L� 'dN 'dO O� O h t� d' d� OD h M O LD LD Ln ri ri ri _ d' 0 N a� m a\ m N N r� W l� H In N N at LD' r-1 00 M n N N M t: M O� m d' m O m ri N Ln N N N d N o0 W at r-i Ln N N O O M h LD M h O W LD O 01 M M l.n In O� LD O d' O N 00 N N N O N LO O O O N LD M 00 O N N cr W LD N 00 O� r-1 a\ LD N r-1 d� •--1 N [� LO M LO O� In M r-1 N 00 M ri r-1 l� V LO d' LO N N N OD vl W LD' l� N 00 of r-I' n N 00 d h a� N M M O M ri N O O N 'd' r 1 N N M LO N O� M O LO ri Ly QI d N OD' A W ri H Ln N O N M m M LD co N O h O� LD d' O O ri m M 00 N kD LD ri N W N [� Ln r-1 h m N d' In N M In M LD M O Lp LO Q d' ON d; Ln LD Ln O O O ON M h Lp d' LD LD 00 In m at N M d' Ln r-1 N t ' d' (� N N e-1%' O m ri p kD M' N DO N' Lp 00 Lrj Piz (Nn d' N O% cq M M d' 0000 N M O� LD In ri N N cr r1 r-1 00 �I 00 ri [� W U b a N E+ ,��. ) m w w w a .a L d' 0 En u u t7Ln La o _o _ p G ro P. a �N C y b '1~l .p N mooDC °� o O a o a �' o°1n oo g w c C °' 10 fg b m U p �¢ C a +S f9 a r4 o a a� o Qa% N 3 N 3 N N N :�' �N C�J . o O O O N N a Fes. Fes. � � 'L7 0 A Ln Ln Ln O Ln u x A .a > w c� F U a F a Ca F F F a F O O O O m O O O O O O O O O 0 0 0 a 0 0 0 0 0 0 Q r1 O O O O O CDm M M M d' d' Nt to ri M M M ddd ' ' M' 'd dM' LLnn �O d' d' d' d d d d' d' d d d' h d d' Ln Ln Ln m Ln Ln m Ln Ln Ln r- N M d' Ln 00 Ol O �- N m L11 l0 I� co al O N M 'cr Ln L,D 1� 00 Ol O N M d' Ln `-' �'"' �"' c-- r- r- N N N N N N N N N N m M M m rn M 0 0 0 0 0 0 0 0 0 0 0 0 r-I O ON m O 00 O Ln N m O O O O O %,D O O N M LO O kD ri 00 O O% O O (V O M d' O O N O ' O Ln i LO - ' M O 1 O- _ O O h h d' In O O O O 00 00 N 00 d' d' d1 v O r-4 M ^ v v cy v v v r-1 e-1 O O O Ln O ' Ln h M Ln Ln O ' O O O O h O h m 00 co %40 O O LO t\ O h 'dt M N O Ln O\ Ln Ln D- N r-I O r� to kD � N co h M M H H \40 N M N ri N LD 00 M W d' ' r-L ' M 07 r-L N ' N00 O Cn %D M 04� co m 00 N N O 00 r-L Ln 00 m O m O% V4 00 'd' ri Ln m Ln cr r-1 ri 0 r-1 ri Q\ N Ln N tr) 00 M M rd N M Ln O O O O O ' O M 00 r-I O O O O O Ln O Ln O N r-I O O Lo L ^ O LO N O 'ch Ln O\ Z N H Or ON m 00 m Ln N 00 N O� N 00 00 r 1 r1l N M 1 d' M r-I d' I%D N m 00 %%D d' m On H N O l; O H O 00 O\ N N m% w tD N' ra N r-1 N N M ri O\ LD N O\ r-I N N Ln r-1 r-1 w m m M ri m ' M n O Ln ILn \D M r-I lD w %ND 00 O m "t d' O h In to cr ♦-I O r-1 r-I O O Y rr-I rM4 � d' N 0000 rr-I � V=4 r-I N N Ln N N ON M m O �D ' %�D ' M O` N O N O M L� m w 00 C7 Ti m %10 O ko [� H t� h M h O co 0o r-( Ln \10 r0-1 V-4 W M 'd' N dq' � L\ � OMO ri N N d' d u � Eo- bo C 0 G p CO co x H PX 4 00 u F L/) Y N N 0 N G N Ln 134 V U N FA N O to p a�i a Ln 0) C4 A u ca P4 a w a A 0 o F w a co :j d (TiLn w v 'I)m f5 S4 u o w G u El o O �° 0 � O c04 o coo O o 0Ln x P. F F a. u. F u cj F O CDO O On(=t� O CD CDT14 r-1 Ln h ri O N N CD CDN ON O� O� M 'd' LD LO �D kO �D ON ON O� 00 co enLD �I MI MI �I MI �I �I �I �I �I �I �I �I �I �I �I �I �I �I 115 1 f• e �i DIE I a I a a NERCOM -Overview 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. Primary Functions 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 financial responsibility of the dispatch center and provides input on customer contracts and personnel hiring. 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, 36S days a year by a minimum of four 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 Telecommunicators, two (2) full- time Lead Telecommunicators and six (6) part-time Telecommunicators working twelve hour rotating shifts. NERCOM is supervised by 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. 11� Commander of Sup port Services Ryan Sciame Dispatch Center Supervisor Jennifer Synek Lead Telecontmunicators Justin Lelbach and Dexter Barrows Day Shllt NightShlR Dispatcher � Dlspatchcr Dlspatchcr � Dispatcher Kaitlin Durband Holly Neville Tracy McNamara Gwendolyn Allen ME4 Dispatcher Dispatcher Dispatcher Dispatcher Rebecca Morrison Kelly Schmitt Patricia Garrett Michele Zujetvski Dispatcher Dispatcher Dispatcher Dispatcher Kathleen Gallagher Katherine Fitzgerald Tracy Vasquez Bridgette Nolan Dispatcher Dispatcher Dispatcher Dispatcher Ryan Miller Maria Joseph Eileen Beideiman Kate Wilbur Dispatcher Dispatcher Dlspatchcr Dispatcher Grant Ilavens Amy McKendry Tyler Hubbard TDD NERCOM - FY 20/21 Accomplishments Personnel The following individuals were hired during FY 2020/21 in order to maintain our full-time telecommunicator staffing levels at twenty-one (22). • Kathryn Rife was hired February 5«�, 2020 as full-time dispatcher in our Communication Center. She previously worked for Centegra. • Tyler Hubbard was hired February 12�h, 2020 as a full-time dispatcher in our Communication Center. He previously worked for Rock County Sheriffs Office. • Rebecca Morrison was hired August 19���, 2020 as a full- time dispatcher in our Communication Center. She is also an EMT with Nunda Fire Protection District. • Michele Zujewslci was hired October 11��2020 as a full-time dispatcher in our Communications Center. She previously worked for Med-Cor. Public Relations: During FY 2020/21 in response to the COVID-19 lockdown and kids not being able to attend in - person schooling - the Harvard Fire Department started a "nightly bedtime story" for local kids via the Facebook Live platform. They invited all of the NERCOM telecommunicators to participate and select and read a bedtime story. This was very well received and the telecommunicators were happy to play a part in it. The Woodstock Police Department has aSenior-Citizen call -in program designed to keep daily track of those who live alone. As a result of these daily phone calls with the telecommunicators, they have established friendships and have volunteered during their off time to bake cookies for them and to celebrate their birthdays. 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 2020/21 dispatch center training was limited due to Covid49 restrictions but the McHenry Police Department remained vigilant in searching out training opportunities for our telecommunicators participating in approximately 879.5 hours of training. In addition to in -seat training opportunities, each telecommunicator participates in mandatory monthly on-line training sessions through Police Legal Science. This is an online training program, which offers real life scenario based training for emergency dispatchers. During FY 2020/21 employees of the dispatch center completed the following trainings: Employee Training Description Dates Attended: Maria Jose h 9-1-1 Customer Service 1/13/2020 Jen Synek/Dexter Barrows/Justin Lcibach Drug & Alcohol Impairment in the Workplace 1/21/2020 Ryan Miller "What if We Were Family" 1/22/2020 Kathryn Wilbur METRA Training---2/6/2020 119 Justin Leibach/Dexter Barrows EMD/AQUA Training 2/6/2020 Jen Synek/Dexter• Barrows/Justin Leibach Integrated Response Conference 2/28/2020 Dexter Barrows Communications Center Su pv Training 3/4- 3/6/2020 Dexter Barrows 40-Hour Peer Support Trainin 3&3/13/2020 Kathryn Wilbur Emer enc Medical Dispatch 6/15 — 6/20/2020 Tyler Hubbard Emergency Medical Dispatch 6/15 — 6/20/2020 Arny McKendiy CIT Training 9/23/2020 Eileen Beidelman CIT Trainin 9/23/2020 Rebecca Morrison Emergency Medical Dispatch 11/10—11/19/2020 Michele Zulewski Emergency Medical Dispatch 11/10 — 11/19/2020 ALL EMPLOYEES ANNUAL CPR CERTIFICATION 2020/21 ALL EMPLOYEES ANNUAL ICS TRAINING 2020/21 ALL EMPLOYEES ANNUAL LEAD CERTIFICATION 2020/21 ALL EMPLOYEES MONTHLY POLICE/FIRE/EMS SCENARIO BASED TRAINING 2020/21 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 service sixteen (16) total agencies at an operational cost that is lower than our comparables, proving that consolidation can save money without sacrificing service. Calls for Services During the 2020 calendar year, NERCOM answered approximately 38,411 Emergency 911 calls and approximately 80,060 non -emergency administrative calls. An additional 33,313 outgoing calls were made on the behalf of our customers for additional tasks. Currently NERCOM handled the following calls for service during the 2020 calendar year: j9Q� S McHenry Police 21,721 Johnsburg Police 31583 Marengo Police 31638 Union Police 126 Woodstock Police 23,553 Harvard Police 4,452 Fox River Grove Police 51124 McHenry Fire 51877 Marengo Rescue 11365 Marengo Fire 465 Union Fire 126 Woodstock Fire 41595 Harvard Fire 11426 Cary Fire 2,085 Nunda Fire 388 Fox River Grove Fire 760 1zo uRCOM - FY21/22 Goals & Objectives Below are the highlighted Goals and Objectives that the McHenry Police Department Dispatch Center will focus on during the 2021/22 fiscal year budget. • Improve U quality of services provided to public safety agencies. • Strengthen our customer base through str ong customer relationships. • Development and revision of dispatch center policies and operational procedures. • Hire additional staff as needed. • 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. • Obtain Emergency Medical Dispatch (EMD) ACE Accreditation through Priority Dispatch. 121 URCOM - FY21/22 Performance Measures Performance Performance Performance 1/22 Proposed Item Goal Measure Otitcome(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 fi•om IDPH at all throughout the year and Dispatching certification tines. produced in annual report. Telecommunicator shall, within 60 Measure will be Initially process 9S% 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 PSAP transfer at least 95% 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 seconds 90 sec onds of them being answered. answered, culminate into an amoral report. Telecommunicator shall, within 60 Measure will be based All Criminal Hot Piles will minutes of receiving all necessary on regular auditing of LEADS Hot Pile Entry be entered without information, complete each Criminal Hot the LEADS CHF records delay. Pile entry into the LEADS/NCIC contained within the database. 911 center. Telecommunicator shall, within 120 Measure will be Initially process 95% of all seconds of answering a non -emergency substantiated through Non -Emergency Call non -emergency calls call, acquire location of incident, phone the use of quarterly processing, within 120 seconds of number of caller, complaint type, and reporting, which will them being 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. 122 a a o 0 0 o 0 0 0 o a o o o 0 0 0 NO 0 0 0 0 0 d� o CD H dq CD %D ko O O rn O O CD o CD o CD CD o 0 o O �o O o N 00 0 %D ON O Cl N O O p O O O O O O O o O O Ln o L-i N O O 00 O r4 N O M O O' o CD O O CD O O y O O N N Q Q 1 1 i i i i Obi M LD "t d' Ln LN-1 M m Q\ ON Ln co N h LD N M M W v N d 00 h O O O O (n M Ln in O M O O O O O O O O O O N O� M O% CD O d' M Ln 00 OD N Ln LD O Ln Ln m O O ON N O N m m N d' O O %D O Q1 OL Ln Ln 00 O 00 d' in Ln N ko CD LD •-i M to O' M t� t� Oz Co C) IA m N M Lo Ti k6 N M D. fn M (Dft M �-1 h L-i L-1 m L-1 Ln L-1 L-1 ko P-i M N Ln Li f4 ko M n o NCD M d' O N 00 N 00 O Ln r d' 'd' M L-i Ln N Ln N N In LD Lo d' m M O Ln L i Ln t- to O LD M LD Ln d' W N � M w M t� h m LD 00 �-i h M N Ln e-i d' o' fh •-I h Ln to O` N' N r-1 N M M' 00 t�00 O _ coL-i N Ln r'i M H to x-1 ei LO to M LD r-i M ri N Ln L-j N O L-i O O O 144 N O O O O C0 O O N M O O L-I M m N m C] CD O O O� Ln d' Cn t�Ln Ln o N In N CD O O N O N M �o M D\ O O M N m N O\ N co h ON M d; to to N LD O LD .--i d' o O d' I [n Q\ co O Ln m N M LI) L'i Lfl H 00 t\ 00 z Oo L-i M Ln H M ri L-i M L-i Lo �-i '�"� Ln M LD r-4 M ''i N d' i N' r-i Ln `i 8 00 00 � 00 �o h N �o N \D r O% M t\ O N OD N L-1 O L i N Ln m m d' •-i L-1 N O OL O� O 00 LD d' M N O m ON kD M t� 00 H% t� O 00 LD h ko r% O� 00 OD .--1 h h O' N O' �o % m .-i m N' Ln CS ON N "3' OD IIIN N N "i L-i OD m L-i Ln In m M Ln '-i co L-i M N M N d' M T-i m L--1 N t�M O CD N � 4 M LD N M O M O LD 't'L N O+ ON d' %O d' d' N O+ �D W O - M N LO t\ M L--i M O` ii O h to a` Q\ 00 OL LO In T N M ON .-i M 'dam co O L-i d' ft O M fn L-i N' W Y J W M N N L-1 tT-i n n Cl L-i In co M L-i M c-i r"i r"i r"i r-1 i N' fd M O� M _ ON Q` ON m co LD d' O t� M ON H N h d' N LD in h %-i '-i m Lo d' O LD N L-i d' d' O CD CD LO N M t� Ln 00 N N co ko h M ON A N `44 O M 00 OD O% N ri ON d N M co Ln r-i 00 Ln Ln ri d M h O' d' t% Ln M C7 M Ln M LD 'i OD 'i N � Q d' h% M O� M Ln n N L i L-i 00 c-i h L l ON Ln N M L-i fn r-i '-i N L-i O N b W u W N U Ly V P54 N y W Co � W On N N a.+ VVq y F. y C/ N U 4 a a+ N U U W u u u (D W w p y W V N w Ln y L �gg v 3 A � ��a, n w �;' u y¢ `�R ZO w o o x is 'ri~ 9 q rn y w pN.� ii o 2 0 U %w SO�` uWw, u H }w� w F u H U t F w r. F F F O N F a w m(A O x A .a W F U aO E� F ,L1 O O O O O O O O O O O M Ln N M d• �-i N N N M c� W L--1 L-i ri ja% O O O M M M M d d InT-4 �-i M m M d' d' to to .--I Lo N cqdrM � N m m A O N M d' Ln LD t� Co ch O N M d' Ln LO h [O O1 O N M M M 00 M Ol O M 'c1' N M V In lD n W Ol N N N N N (V N N N N M M M M M M 123 t1 1/ Public Works Administration - Overview Public Works Departmental Mission The mission of the Public Works Department is to respond to the community needs consistent with the policies determined by 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 Department consists of five operating sections that provide services to the citizens of our community. These sections includes Administration, Street Division, Water Division, Wastewater Division and Utility Division. In spring of 2020, the Public Worlcs Administration was reorganized to consolidate duties, reduce management personnel costs, and create opportunities for cross training between divisions. Maintenance operations are now divided into two groups: Field Operations which includes the Street and Utility Divisions, and Treatment Operations which includes the Water and Wastewater Divisions. Public Worlcs Administration Mission It is the purpose of the Administration Division to provide direction and administrative support to the Department of Public Works. Public Works Administration is also responsible for completing City 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 coordinate with the Mayor, City Council and City Administrator to ensure proper execution of the City's policies and departmental programs. • To provide "in-house" engineering services for a number of City projects, to perform plan review for development and utility projects, and to perform project management services for the City's contracted engineering services and publicly bid capital construction projects. • To provide administration, personnel management, asset management, departmental strategic planning, financial management, and capital improvement program planning/implementation for a Public Works Department responsible for all municipally owned and operated public infrastructure within the corporate limits of the City of McHenry. The Public Works Administration Division includes the Director of Public Works Troy Strange, Staff Engineer Greg Gruen, and Administrative Analyst Elizabeth Roth. 125 10�+s r. 11� CITY OF MVHE 1415 Industrial Drive Public Works Director Troy Strange Staff Engineer Greg Gruen Treatment Operations Manager Russell Ruzicka Wastewater Superintendent Russell Adams Water ROIC Operator Bryan Scheel Administrative Analyst Elizabeth Roth Field Operations Manager Steve Wirch Utility Supervisor Mike Lange Street Supervisor & Arborist Mike Harper Public Works Administration - PY20/21 Accomplishments • Administration and oversight of Refuse Collection Contract. • Awarded "Tree City USA" for the 25t�consecutive year. • Awarded a $919,187 Grant from the Surface Transportation Program (STP) for the resurfacing and ADA ramp improvements for Green Street. Application for the Grant was performed by in-house staff. • Awarded a second STP grant for $262,139 for the resurfacing of Bull Valley Road. Application for the Grant was performed by in-house staff. • Performed the construction engineering and management for the Court Street Pat•lcing Lot Project. • Coordinated with our State Senator to obtain a $200,000 Grant for downtown parking lot improvements. • Worked with the Finance Department to reactivate Illinois DCEO grant funding for the demolition of the Central Wastewater Treatment Plant (WWTP) • Performed value -engineering for the Central Wastewater Wastewater Treatment Plant (WWTP) Demolition Project to reduce cost from original engineer's estimate of $1,336,506 to a bid cost of $773,600. • Worked with consultants to fast-tracicthe Central WWTP design, bidding and construction to meet an aggressive timeline to qualify for a $525,000 Grant that is set to expire 6/30/216 • Performed value -engineering and lift station evaluation for• the Millstt•eatn Lift Station Project. The evaluation determined that the $2,000,000 Millstt•eam Lift Station Project, although desirable, is not required and that project may be cut from the Capital Improvement Program. • Performed and developed pt•eliminary concept plans for several Grant applications from the Illinois Department of Natural Resources, STP, and Department of Commerce and Economic Opportunity. • Developed reliable funding sources to perform $2,000,000 per year in road resurfacing. Funding sources are from MFT, 3-cent local gas tax, and personnel reductions. • Implemented an electronic based wot•lc assignment system using Laserfiche software to t•eplace the old antiquated paper ticket system. • Performance of financial analysis of Public Works operations in order to identify oppot•tunities for efficiency savings and execution of contracted services when such opportunities are identified. 127 ® Reorganized Public Works Management structure to consolidate duties, reduce management personnel costs, and create opportunities for cross training between divisions. Held a series of Public Worlcs Committee meetings to brief the Public VS. {a Committee on the ongoing procedural and operations reforms that are being undertaken by the Public Works Department. 128 Public Works Administration - FY21/22 Goals & Objectives • Provide effective communication with the City residents about the various Public Worlcs projects, programs, and services. • Ongoing management of the City's refuse collection contract, leaf pickup, yard waste, and e- waste/Christmas lights recycling programs. • Provide responsible financial managementwltile tnaintainiitgexisting Public Worlcs services. • Continue electronic archiving efforts in order to fully digitize existing paper records into a searchable electronic record. • Continued implementation of an annual road resurfacing program in excess of $2.0 Million • Finalization of a 20 year Community Reinvestment Plan for adoption by City Council. • Management of consultant Phase I & II engineering services for the Green Street (2023 Construction) and Bull Valley Road (2024 Construction) STP projects. • Management of consultant Phase I engineering services for the Oakwood Drive Bridge Replacement Project. Project is planned for construction in 2024. • Management of all 2021 Road Resurfacing Programs including: In -House MPT Program, Renew Illinois Bond Funded Program, and Supplemental Road Resurfacing Program. • Hold Public Worlcs Committee Road Resurfacing Program selection meeting in the first quarter of the fiscal year to allow for more effective program planning and preparations. • Completion of an interim Millstream Sanitary Sewer Realignment project to remove the existing gravity sewer system from conflict with the future Riverwallc section. • Hold a Public Works Committee Meeting to assess the status of the Water -Sewer Fund with regard to long term capital and operating costs. • Begin preparations for long term removal and control of the City spoils pile located at the Wastewater Treatment Facility site on Charles J. Miller Road. • Implement annual review of OHSA Safety Policies for all Local 150 and Public Works staff. • Begin preliminary coordination for utility relocation and overall City involvement in the Route 31 reconstruction project which is funded in the current Illinois Department of Transportation Five Year Highway Improvement Program. 129 Public Works Administration - FY21/22 Performance Measures ererformance ..r rinance .. Item Goal Measure Proposed Otitcon-le(s) Capital Improvement Develop an updated CIP and transmit Was the CIP undated and transmitted to the Finance Pro (CIP) g ( ) to Finance and Administration and Administration All deadlines are met Department Department by the due date? Was the operating budget Develop and present an operating transmitted to the Finance Annual Budget budget to the Finance and and Administration All deadlines are met Administration Department Department by the due date? Respond to resident Resident Respond to a resident complaint om• % of time that Public Works complaints/inquiries within one Complaints/Inquires Inquiry within one working day from Department staff responds working day 100% of the time receipt within one day throughout the year Develop all RFP's for Engineering Request for Proposals Services and for Construction All RFP's completed, issued, and (RFP) Development projects for which the City performs Status of RFP's for budgeted contracts awarded for projects "in house" engineering services g g projects in current budget year Manage City Engineering and Construction Projects and assure Schedule and Budget status All Engineering and Project Management projects are completed on time and of City Engineering and Construction Projects on budget Construction Projects completed on time and on budget Assure that City Engineering and All contract work and scope Construction Projects are completed Quality Assurance of City items are completed in Contract Enforcement in accordance with contract Engineering and accordance with contract documents and scope of services Construction Projects provisions Review and issue utility permit All issued permits are Permit Reviews applications and assure that City completed and closed per the Infrastructure is undamaged or is Status of issued permit terms of the original permit fully restored upon completion of application, No/minimal permit work outstanding permits. Technical Support for PP Provide all requested technical support for City Maintenance Completion status of All requests for technical Maintenance Staff Superintendents and Crew Leaders requests foil technical assistance are completed on assistance as needed" basis Final Operating Expenditures All operating funds are at or Financial Management Efficient management of all operating relative to budgeted below the approved operating fund accounts operating expenditures budget and/or overages are documented and justified 130 Fiscal Year 2021/2022 Annual Budget � 1 1 Street Division 131 Public Works Street Division - Overview Public WOI'lcs 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, and cost effective infrastructure through superb customer service. In addition, the division will provide residents with a quality urban forestry program which is cost effective and acts as a responsible steward for the natural resources of the community. The functions of the Street Division include street cleaning, street maintenance, responding to all resident requests, and snow and ice removal. 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 and curbs. The Street Division provides residents with cost effective and quality urban forestry services and delivers responsible stewardship for the natural resources of the community. The arboristIs crews utilize 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: • Division crews remove snow, control ice, conduct street cleaning, and perform other necessary miscellaneous repairs. • Maintenance and repair all City owned vehicles and various equipment through the City garage with two full-time mechanics. • Monitoring and maintenance of City streetlights and signals by a private contractor. • Maintenance of City streets by filling pot holes and patching. • Monitoring of creek levels and maintenance of channels to prevent flooding. • Advising and consulting with the Department Director regarding fleet and infi•astructure needs and responses to service requests. • Tree planting; maintenance and removal, completion of tree inventories, performance of tree surveys for insect, disease and any hazardous tree problems, administration ofthe City Arbor Day Program, maintenance of the City's status in the Tree City USA and Growth Awards Program. Coordination with other City departments, community groups and volunteers on tree related issues, and oversight of the Tree Preservation Ordinance for compliance. • Oversight of the mowing contract for City properties. 132 Field Operations Manager Steve Wirch Street Supervisor & Mechanics Arborist Jason Lamz Mike Harper Ron Barta Maintenance Maintenance Worker Worker Nate Banwart Sam Burrafato Maintenance Maintenance Worker Worker Nick Goettsche Benton Lesperance Maintenance Maintenance Worker Worker Robert Glascott Chris Sandoz Maintenance Maintenance Worker Worker Henry Lobermeier Rick Leisten Maintenance Worker Pedro Padro Tel Public Works Street Division - FY20/21 Accomplishments • Maintained level of service while reducing personnel costs through an ongoing staff attrition process. • Assisted in the constc uction the new Venice Street pa► king lot. • Completion ofthe bi-annual brush pick-up program. • Completion of ADA ramps and conc►•ete curb in advance of the 2021 Road Resurfacing Program. • Re -introduced the annual brush removal and ditch clearing program on the Lakeland Parlc Drainage Ditch. • Fleet maintenance staff performed ongoing maintenance of City -owned vehicles and equipment. • Division staff performed ongoing right of way maintenance including parkway restoration, mowing, and creels cleaning. • Staff successfully completed snow removal, ice control, and conducted street cleaning in addition to malting miscellaneous repairs. • Staff began a phased resurfacing of the Parlcs Maintenance Garage parking lot, with phase 2 to begin spring 2021. • Staff continued cross -training for major operations between the Street and Utility Divisions. • 297 city trees were trimmed in various locations throughout City right-of-ways by staff. • Twenty six trees were removed in 2020 with 8% of these removals due to the Emerald Ash Borer. 134 Public Works Street Division - FY21/22 Goals & Objectives • Continue to provide a quality level of service while reducing personnel costs through an ongoing staff attrition process. • Address all snow and ice events by clearing roadways to ensure safe travel on City streets. • Maintain the City 's fleet in order to ensure efficient operations and maximize fleet service life. • Repair and maintain City streets by dedicating personnel to road resurfacing and pothole repair. • Continued successful performance of mowing of the City's right -of --ways and property in a timely fashion. • Successfully respond to all resident requests in a timely manner. • Contract with a qualified firm to survey City sidewalk condition locations; continue to identify, monitory, and repair all uneven sidewalk panels and curbs in accordance with surveyed locations. • Implement a 5-year striping program interval for all neighborhood crosswalks and stop bars not currently on a schedule. • Implement a 10-year sign replacement program. • Inspect and maintain the City owned street light systems. • Continued assistance with the preparation for Fiesta Days and 4t�of July activities. • Plant five trees for the City Arbor Day celebration, ten trees within the City Parlc System, and 70 trees in City parkways. • Successfully assist Developers with tree planting in new subdivisions on an as -needed basis. • Continue implementation of the 5-year pruning rotation in City parks and City parkways. • 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. 135 Manage contracted services agreements to supplement services during the ongoing staff attrition process. ® Assist with the administration of Capital Improvement Projects including the 2021 Road Resurfacing Program. Public Works Street Division - FY21/22 Performance Measures Performance EmEnd PerformancePerformance Item Goal Measure Proposed Provide all necessary training Was all training Staff is fully prepared for work. Work hnternal'i'raining for all division employees each required foil the year related injuries are minimized. year completed? Street Sweeping Sweep 121 center lane miles Number of sweeping Clean streets &well-fimcfioiring closed per year cycles completed drainage systems Repair all uneven sidewalk Number of locations Sidewalk Maintenance panels identified through completed and Safer sidewalks for residents sidewalk survey outstanding locations Were all necessary road Safe roads, well maintained roads, and Asphalt Maintenance Pothole and spot patching repairs made? cost effective roadway maintenance Road ResurfacingProgram All ADA ramps in next All ADA ramps in next year's Road g ADA ramp All Program in advance of the bidding Support year's Road Program process. Provide all necessary ditching Repairs completed and Well maintained creeks and drainage Drainage Maintenance and creek maintenance to outstanding necessary ways which reduce the City's risk of prevent flooding repairs flooding Completion of a tree Tree Condition Perform a tree survey survey for half of all City Reduce failure and preserve City Trees tree locations Creek Maintenance/Controlled One prescribed burn/all Successful maintenance of the City's Manage Woodland Areas burns creeks maintained natural areas/preserve creeks 137 137 0 C o m LD O O In N ID N C) N M w N O N d' O m O� O O d' m w O O o 6 �--1 %O M O m w w N .-� o N d' O o N rn o In M In O w O O In L� ON �o m [� LD .-A I� h M d' O r-4 �' r-1 Ln N r-I r�l i r-I�--I In m N N M N N c-1 O H O Ln LO w m N O O O ' O O O O O O O Ln O m w O N h w L� In O O O O O O O O O o w Ln m h N O d' O O O O O O M m O M r-I O M '-I v [� h r-I d' a O Oi Ln v v N rq In �--� .-I N �--' M h Ln H H ko N v v v v M V-4 v v v v Ln O O O O O I� H N Lo N d� O O O O O O O O O O O Cn Ln Ln Ln N N Ln '-1 w w H o O Ln O o LO O Ln O Ln o N cq r-I H NOZ w M Ln N Cn O M N d O '-I \o w M O M Lfj Ln r-I O N H Ln r-I r-I M %.D M N to O l� M M m U �-1 O M %D N M l/7 �-1 O% 11') �o �-1 N N to% d; N O h In N d' M Ln M CD ro O M rH N M O� N r-I CD w N M � rA d' -I -I N Ln Ln O �i O\ I\ r-1 LD c-I N N O Cl LO O O In O w M Ln M w L� N M m N N N O� 'd' O Ln d' M O N CDro '- N I Z M M Clrq � M N M w Ln N i I I ri i-1 w to w '-1 [� ; LD O N O O�' O 00 I� ' d' d' N O' t0CO00M l� �kD' O� d00 V-1' M c-1' (Y� M v-I In t-I 'd' O d' N -1 Ln w %D rl O M co h to N m N O Lo N M d' O d' w h CO w N m Ln h m Lo '-I m O� M H O% O V-I w O N M M �-1 m M CDO� �o L� w N �-1 v" I M t-I 'd' Ln m Ln O d' w Lo N Y F+1 O� m CD N M N CD �o CO In N v 00 O LD '-1 r-1r-i d' N rq M �-1 �-I CD CD m N O O ITCHn to M h O� N ON Co r"I N w h \o M M O� O w Lf7 O w N d' d' O Lo Ln w m L� m w M d' �p M c-I �D Ln O ONoh Ln ID l� h �o M '� N w d' O� Ln h o M M Io O w.M-1 � N m N Olqt w M m M wO CIN qc:p �--1 LOL1M �--1 '-I N c-1 �-1 M LD N M C� ;ITS, W m C) N _ v v x N Y N �, u u W °�' .n U a w CD ICI NK• ,,� owdO,to aN to 0 N y x LNesQ' w .ro o04 w E-' q Q, j7 a°1i Fes-' u 'c� w -+ w Ln o O Ln x A. i w Ems- u F F E V)i F o C�7 LEi n v�i CJ O o 0 0 0 0 0 0 0 0 o O O o Cl p o p o]r4 0 0 0 rl to rq �--1 N M d' r1 N �-1 r-1 N h M 4t �-1 N VMA to [� O� Q O O O �--1 M M M M d' d' Ln .-I M M d' 'd' In M �--1 N N N d' d' d' d' d' d' d' d' %t d' d' Ln U) Ln Ln Ln In Ln \p Lp Lo Lp �-- N M 'd' Ln to w Ol O N m d' Ln IA h w Ol O N M cr Ln lfl f\ w Ol O N M 'd' Ln N N N N N N N N M M M M rn M 138 0 0 0 0 0 h M O rn d' o m o �D Ln o 0 0 � r-1 Q Q Q O o ---- rn rn -- O o 0 0 0o co O O O ON Ln v o 0 r-I k v U) Ln LO N N O O OJ O co m Ln O O N O O O O O m O O U) M M N C r-1 U) N m M N d N 00 M Ln 00 M N Ln %D O m O co Q% OD (J C1 O cy� O 00 r1 O M O O V n 0o O O m N O ri O O O 0� t� OD ci O Z d' t� 0o N r� d' o 0 0 n Lmn 00 r-i-i Ln %D o <h LO rn rn O %.D 00 ke QD r-� CDd. N N ad (M O ri t� LO N co N r-1 t� 00 Ln d' co 00 t� O O M d d d co �C L O 00 i-1 OD N d' M N OD O 07 O L() W 03 Ln 'd' Ln Ln O ri O rq N M m d' 00 00 N O W r-I O N N 00 00 N 0 H O a) a) a w U V O (n W y a) a) cG a V a. N cn W •� a412i F w w w x o% W vr) Ln y y O 7 _ Q' x .Li N i H a a. E� H w E� O a O s F0 N u u CD O Om CD %O p p O 00 co lO r coOl O N m V1 lO t` co re) m m m V "I <t Nt 139 Fiscal Year 2021/2022 Annual Budget 140 Parks and Recreation - Overview McHenryj,- !'arks R• Recreation Vepwlmeni 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 Recreation Division of the Parlcs and Recreation Department consists of four full-time and one part-time personnel on the recreation side. Director of Parks and Recreation Bill Hobson works alongside Athletics and Aquatics Supervisor Nicole Thompson, Recreation Supervisor Cindy Witt, Fitness Coordinator Becky Moore and Guest Services Specialist Alicia Barnett 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. The Parlcs Division, consisting of Superintendent of Parlcs and Downtown Maintenance Pat Gornialc, Assistant Superintendent Jeff Friedle and five (6) full-time Parks Maintenance Workers continue to tackle the massive task of maintaining the City's more than 650 acres A park space, contained in thirty-eight (38) municipally -owned park sites. In addition, the ?arks Division is responsible for maintaining the amenities of the City's three downtown business districts - Riverside Drive, Green Street, and Main Street. 141 v n v v ti m •Z vi a v (O Q� C 0 O O � O lJ uN U C m C C ,N C ; V O p N CL 7 0 K Q 0 Q N Q N u C N u CO O V O ^_J 0. QZ O V1 a , a o c c 0 Cl ry U O 0 va v Y Y C C1 u u u U `o E V c ? N Y CJ U y Cl C L C_ Y N c F C O a c � a O O. ,a ,Cl a o a c_ a c v s Y u a o 0 7r2 o a '^ Q o Cv O Q U Parks and Recreation - FY20/21 Accomplishments Recreation Centel• • Recreation Center tools a huge hit in 2020 while trying to navigate the Covid mitigations. Membership totals have continued to decrease to nearly 1,400. 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 almost 63,614 visits from fitness members. Special Events • The challenges of the Covid49 mitigations eliminated all the 2020/21 special event. Programs • Six sessions of the Explorers Camp (ages 4-6) were converted to "Camp -in -a -Bag." Activities, arts & crafts and games were prepared and could be purchased and picked -up. • The Summer Day Camp (ages 6-15) was smaller but still successful this summer. Ten weeks of camp were held outside with an average of 40 campers each week due to limits on group size. • The fall/spring dance program began in -person in September. For a few weeks, the program was held via Zoom. There are 96 students participating. A dance recital (with no audience) is scheduled to take place May 1 at McHenry High School West Campus. • Art, Alphabet and Number themed "Bags -to -Go" were created for toddler -aged kids. Bags of activities and supplies were prepared monthly and could be purchased and picked -up. To date, 33 bags have been purchased. • Successful in -person classes include: Safe Sitter Babysitter Training, Magic Workshop • Letters from Santa were sent in December. • Bunny Breakfast is scheduled for early April. All the supplies to make a pancake breakfast, along with Easter eggs, craft projects and activities for kids, will be packaged and delivered to families. • The McHenry Recreation Center community rooms continue to be a popular location for family and business gatherings. The community rooms were utilized for birthday parties, bridal & baby showers, seminars, meetings and celebration of life luncheons. • Collaborations -Programs offered working with local businesses: o Snapology of McHenry (in -person) -Animation class (fall) o Totally Cupcaked (pick-up) - Monthly kids' cupcake club (fall, winter) 143 Athletics ® All programs were put on hold or cancelled during the Spring of 2020 due to the COVID guidelines. Some programs were able to be implemented in the summer following COVID guidelines while other parks departments had cancelled everything until fall. Staff did a great job of ensuring COVID protocols were followed while offering some normalcy in programming. In total, the department ran 22 programs over the summer with a total of 79 athletes enrolled. The toddler leagues for soccer and t-ball continue to be successful and a hit for summer programming. ® The adult softball leagues ran inn shortened form in the summer and fall. Teams spoke highly of the condensed format for fall and having two games a night. Five teams participated in a summer league that lasted for 6 weeks. That number expanded to 22 teams in the fall ball league. ® Fall swim team registration rose with 30+ new swimmers bringing the fall/winter team total up to 87 athletes. The department hosted a USA Swimming sanctioned meet in November before the Tier 3 closure. In the fall of 2020 the department formed a new partnership with Running Junction Stables. Through this partnership horseback riding lessons were brought back to our parks program offerings. We had a class run in October with 5 students. We look forward to expanding our partnership with them at their new barn opening in January. The program offerings were extremely limited this year in large part due to facility availability. We lost all indoor locations with the schools being closed. Thankfully, it was a great fall to get some outdoor activities in. The department was able to get 7 outdoor fall programs in and serve 48 kids from September to October before the weather changed. The newly installed pickleball courts at Knox Park gained more than 3,000 exposures on Facebook including being shared on Star 105.5. An equipment check out was set up at the recreation center front desk for players that included a small rental fee of $5. The courts saw a busy first year with anywhere from 840 people waiting to play during peals times. It was a great addition that had been requested for the last 4 years. Field rental revenue greatly increased with local organizations suspending play and outside organizations looking for space. We were able to bring in $8,000 in field rentals utilizing our parks across town. We will continue to work with local affiliate groups on field usage. Aquatics Due to COVID, there was a large increase in the number of people utilizing the beach. At the be patrons were able to social distance, swim, and utilize our boat rentals. Our pool did open in August after the completion of our liner project. Having both of these facilities opened helped us serve the community while other districts closed for the entirety of the 2020 season. 144 ® The beach had 2,206 visit and brought in a revenue of $11,000 from admissions. It is the most that we have ever had, and it occurred in just two months. ® The pool had some upgrade projects during Lite 2020 season which included gutter concrete work, gutters painted, a new pool liner and chemical control system installed. The hope is for the improvements to help the pool operate efficiently for future seasons. Staff did a great job of implementing the new COVID protocols at the facilities which included cleanings between swim sessions, constant equipment disinfection, facility limitations on number of patrons, and adhering to social distancing rules. ® In tota1563 people visited the pool during the 2020 season. Annual pool passes were not sold in 2020 due to COVID. ® One the pool was reopened some smaller programs were able to be hosted. Ten (10) group swim lesson classes were held. In addition 39 private swim lesson were sold. In August, we ran a swim team stroke clinic for 35 swimmers. ® We had 4 private parties for the 2020 season. Parks Improvements Miller Point was once again the focus of some improvements along with a lcey private/public partnership. The Parks and Recreation Department utilized Developer Donation Funds to install floating boat docks, a sandy beach area and to run power and water to an upscale shipping container that serves as the rental office and concession stand for a boat rental business. The business provides paddleboards, kayaks, canoes, pedal paddleboats as well as restored mini-retro boats. Covid restrictions significantly delayed their opening and also limited their business to just one month however, it was very well received by the community during that time. As referred to earlier in this document the department was able to add two picicleball courts to the I{nox Parlc tennis courts. In addition to transitioning one of the tennis courts to the new playing surface, all of the outdated and broken light fixtures were replaced with new LED light heads. Another instance of light head replacement occurred along the length of the Riverwallc. Through routine maintenance inspections it was determined that there were a number of the heads that had cracks in them. The Parks Maintenance Superintendent reached out to the manufacturers of the lights. After a number of site visits and conversations, the company agreed to replace all 43 light heads at no charge saving the city over $80,000. This is a direct result of the relationships that Mr. Gorniak has fostered with the vendors he utilizes. ® Also along the Riverwallc, new color changing LED rope lighting was installed on the pedestrian bridge. 145 The very popular fire globe program was expanded once again this year through additional donors, adding three more fire globes. There are now 11 total globes that are lit with fire in September and October. The remainder of the year color changing LED's are placed in the globes. Nearly $200,000 was invested into another washroom remodel and expansion this past year at Veteran's Memorial Park. The women's facilities went from 1 to 4 and the men's from 2 - 4. This also included re -roofing the entire structure. The city was able to demolish the former Court Street Water division building. A number of donors stepped in to convert the site to additional downtown parking. The parks maintenance purchased and supervised the install of the lighting on the project. ® Another demolition occurred at Neumann Parlc last year. Old carriage houses and workshops were removed to aide in creating a visual link between the parking lots and the street. This park also is being explored by abutting business owners for the potential for use as outdoor patio space. Street lighting on Green Street and Main Street were upgraded to LED light fixtures. ® Finally in the downtown areas, new street signage has begun to be installed. This will be a phased approach as the conversion happens. ® A project that had been in the works for a number of years was completed at Petersen Parlc last year. IN an ongoing effort to malce the park as accessible as possible a path was paved from the concession/washroom building around and in between softball fields 3 and 4. ® The basketball court at Shamrock Parlc was stripped and resurfaced in 2020. ® The Maintenance crews installed 175 tons of ballfield mix and spread over 300 yards of mulch in our playgrounds. Parks and Recreation - FY21/22 Goals & Objectives • Continue to maintain the City's quality parks and parks amenities and to offer quality recreation programming for our residents • Coordinate with user groups, service groups and businesses to manage McHenry's fantastic public events • Enhance Department's sponsorship program. • Continue to develop relationships with school districts, chamber, and various social clubs in community. 147 Parks and Recreation - FY21/22 Performance Measures Proposed Item Goal Description Measure the Department's Are the Department's Marketing marketing success and marketing efforts reaching the October 2021 effectiveness, Intended audience and which 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 November 2021 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 2021 develop staff workforce and staff? reduce turnover/loss, What is the value of a Transition members on hold membership? Are we Membership Rebuilding back to active status and add continuing to offer the most January 2022 200 new members for the year current group exercise classes? 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F a rx Ll F F F a F f� C) CD CD 0 0 Cl 0 0 0 0 0 C:) CD C) 0 0 0 o C) o 0 0 0 rl M Ln r1 In H N M 'cN rl N ri rl rl N M l� ri N M 'd' Ln ri Q (.y C) CD C:) �--I HM M M M d• Ln r1 M M M M d' d' d' Oct d' Ln d 'd• d• tt• •d• d• •d• d' 'd' d• 3 d Ln Ln Ln in Ln Ln Ln Ln Lo Ln Ln a .- N M d' Ln to r� CO Ol O N ON N N N N N N N co N OM M m m M 149 m O %D O %10 N O O N O l� o h O %D %D O O O L� N !o) !CD O C) !O rh d• r-i d Lri y O O N r4 O O O O O O O O O O O O Ln O O Ln O Ln N L\ v v Q' W v v r-I v v O O O O O In 00 O CD O O CD mO� a% O� ON m00 w Gs M D- �D c i 00 In O� N M 00 h 00 CD M N M l0 �4 M LIL O� 6N In O I I d' T-1 h N H %D l� O r-I r-1 r-i N O O O O O In d' M In CD CD In O •d' O� M O� M N �D Z �-1 O� �• d• O N M [� �D N h N O� M O N L/7 N to O� Q\ O In N 00 O N r-i ko O �-1 �-1' �D M M r-IN rl Ln 00 %D %D N r-1 rmi M N M Vmq lfj T--1 N M r-I %D 'd' h O O H' N M W %40 Ln M I N M �-1 N N N r-I O d• h ' m M d' e-1 aN ' ON 0D H d' Ln 00 %D Ln th t� h %D VID O N h N N N M m w H h '41 H c-I r-I M 00 �D m "t L!1 Ln h r-1 N N rEj UU °' 0 Ei 0 0 G � w wCA P m V) g u a� JR4 u x a 0 a 'p u u W✓ a N O A. Ln w O ai a N 04 y y w 'o •� P. a q En ,N v a�i a�i 0 a Lv a ro '� > rig In C w ..7 N w IV N a y a o CIS F C (U y m ,~ L: I9 }y S9 co O L, L) Eo ch w E a a4 F u Lei v 04 w Eo O O O O O O N O N O O O O r-I r1 Ln h N Ln O N N CD CD O O Q r-I N N N a� ON O% O� O% M •d' h 00 %D LD VD kO M M M co O O 00 m� ml ml ml ml �I NIMd'Id�'I 'od'I �1 d�'I mI owl Lnl LNnI LMnI Lil ILn nl Lnl Irnl Ln 150 p polli T ✓� -- 1 juy V �r. did- ort!►N it do 4 APO ff Ord Ow dood �. `. e %YWL 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. For FY21/22, the Tourism Fund is being used to continue to pay the principle and interest on the acquisition of the Green Street Parking Lot and for the purchase and installation of 4 new City Gateway Entrance Signs. 153 o 0 0 0 0 C % 0 C 0 C 00 �--i O CD O - O O O CD O O CD N CD H �--� O O t-1 r� ui �j y O .j M O O l0 t� O O r-1 o Ln Ln o 0 0 0 o" o 0 0 0 v v v Lo LO 0 0 0 0 o O o 0 0 0 0 0 o O N O Ln O Ln 00 00 d O N O N O O O O O n Lp LD O Ln Ln O O L� O O� %D O Ln H' O M LO Oi D% ko M �D Ln M D\ co O O M Ol O O m cy� O O Ln Ln �D. 'd' ON O op O N Ln 00 N N N Ln O m Ln LoM m 00 m O m Ln Ln 00 0:) O� kn '1 N h rl 00 r-1 Ln O� LD 00 M � 00 0 0 0 0 0 o O, o 0 00 0 0 0 O O CD O O O O O O �o N O O O O o O o 0 o O O O O N z _ 00 O H LO 1%0 O O r-4 ko Ln O� r-I TM4 N M r-1 to n O� N N N M O L-1 O 4Ln Ln CD O Ln H ON ON m O �o 'd' co ON Ln l� t\ � M O N O� N N N N O� r-1 N O' O O LO Lo %O Ni co N Ln � M M �-1 In O� �D O� /'!1 N � N CD �-i M m d' 0� M O vmi h h O h 'ch M 00 h Ln h h O Ln L� M Cn Lo O LO (3N N Y co d' O Ln V-4 N 00 O � ON h l0 m o 0 o m rn co V � O LNn N 0 Ln Ln Ln i i i i O O Lo O M d' N '-1 O 00 N N Ln ko � O O p p p lD � LIj 'd' '-I O% Ln t ' r� Ln Ln N m 00d, Ln Ln n rn m N � N b Ln w woI I 5 x W • o N N W LU �' u W a L �, aj a ,d a, a� °,�' H a LS w w W C p y fn IV ,��" QDI VLid Ov H '(j '� o xx 41 u x ro o0 b +'' '� o L. O u Lct a4 v a o ..�� c7 Z F b H a v F F c�a PO A d a Q a a a H F FtFj z c0 F 0 0 0 0 Q ON 11 O tw 0 bA ��-1 Obi %D LD �O O� M M M M M M Ln to (\ 00 O� :d w W r- N M d' Ln lD I� 00 Ol C7 r' N M 'q' Ln to I� 00 Ol O N m �1' Ln lfl 00 Ol CD, N M 'cr Ln l0 N N N m m m m m m m 154 O F T R E F O X R 1 4 Fiscal Year 2021/2022 Annual Budget 155 t 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. 156 157 Fiscal Year 2021/2022 Annual Budget 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 band. 159 0 C 0 0 O O O O O O O O O O_ O O hO h > CD CDO O O 0 0 0 0 - N N v v m. O O i i O O d O O O O O Ln Ln LO Ln O O O L!)� O CDv v v M C\] N N N O L--1 ri H r-1 O O O CD CD O oo O O O O O O LI) O O Ln Ln Ln Ln N N d' 'd' d• N j ON o h m co ' m �D N m N N O N L� L` L\ 'd' O O l.() In Ln Ln Ln N N d' v O H Ln Ln ' Ln d' OD N O Co co 00 00 LO O O O cl Wco co N N m-i �m-1 `) — QC 'ri m Il'1 O m � �a ' �O 00•iJ Ln j CD CD Ln Ln LO d' ON N r-i Cd - a a� A 0 N � I w 'C1 a Ln wLn w En Ln a m - En h U cz w A w � c7 Z � p• al Ln a) o o oy a 0 W w W O E DC Lx w to � u ro b o z a b a) b 6 aCi H F E Q F F z w_ H O w L 'pp m m m LO � � GC1 w o N m d Ln to r col rn o N m Nt Ln io tr co N m `t Ln Lo r oo rn N N N N N N N N N 160 Fiscal Year 2021/2022 Annual Budget 1 161 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. 162 163 :.: w pp j�qrrp`tom r/ • awr t, } t pk �.� i�l 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. 165 0 0 0 C 0 h d DD d %40 o d• o o h (V V-I O N O O O O In O In O h O N O N v Ln N `O N d' N O O O O N h O �j ON N c-1 O% h 00 N N V-1 ON ON —o -- M co h m N --- M Ln �O V-i r-1 O In In M O� %,D N d, ID 00 0D OD d' O - - N .1 r1 I'D 00 O` O O Co O O% O O to O O O O O O Ln �O O O Cl O O O kD •, Ln M Ln 0 z N O 0 m m r-1 d' h N N .--1 00 ! ko %�o h d' M ON ko in d• O CIN m 03 h N N In In d; M O M DO ko lO IN �D ~ Ln 00 'O.1 H n n M N Ln n Ln d• N H r-1 %40 N r-1 Ln m O N 00 M ro � O it N N M 00 .--I to t� 00 00' 06 h Y O N h h 00 Ln FM M M H er In h to rA F a; m M 'dam ( N a% CID 00, N N AM' r1Ift Ln N I — N I 'd b w v ai 4:4 cu C. W 7 a �" w F E 'd � °' y z �y Ei O ~ a� (U W v ci b 00 z aka a & w Fp Fo w 0 o w Z Oil w .0 F u u F w a r arml q t 01)I M M M In 00 W N M 'd' Vl lfl h 00 Ol O N fn 'd' to Lo t` W cn O N N 166 F O X R I V E R Fiscal Year 2021/2022 Annual Budget 167 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. 169 IV F myi 7 '. '�i*• d� ��F�1;.,,; : ;jar � �vS,k t a 1, 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. �,I1 :•_�, f �oil 171 172 oNnR O O O o n O O O O O %D O o O O o 0 0 0 o d1 O o 0 0 0 o d o o o ri o 0 0 o Oo t Ln Ln o O o OD 00 O O O `�-' `�-� n Ln O N OD O O O O O O O O O O v O O 00 Ln O O O M O O O O O O Ln O� r-I O O O H O O O O O O r-I O O C7 Ln Ln C) O O Ln Ln O Ln 00 N Ln O 00 H H h M r-I .--I M %D V-I r-I M V-1 co %D OD O M M O 00 O O Q\ H 'd' m �4 d' O O Ln Co %D M �%D d' O O 'T-1 O d' O O O Ln 'd' l� H O `-I r-1 h O N N H L� O O O O0 N h %D N Ln h M %40 N O Ln 0i N O _ M co M � �Oi H N ko 00.i O O O O O co O O O O O O O Ln CD O O O O O O O O O CD O Ln h� O O O O O O O O O O O O N Ln O O Ln C7 O O O Ln O Ln Ln h Z 00 Ln O L� M 00 V-1 �4 M O M V--I H M N M CD O d' O LD N 00 M O Ln %%o v-1 LD M h %10 M O Co N ! O %lo L� 'c1' O O LD O d' d' ON %D O O O O %D Ln l�I kD M h O LD M O 00 h \%D M O O O 00 O� h LO N N N N w In O cr 00 Ln OO Ln O co CM N N 00 Lo r-1 O LD O M O '-i d' co ON r-I r-1 N M N N M 00 N kO co v O h O co O O% co co Ln h co Ln O M O LD T-1 00 N N N O d' O N N O LD W N O N <h Ln CO kD N O Cr 444 kD N O N ko Q M M r-I d• O d' Ln 'd• Ln Ln O� Q O�1' Ln 00 LD co 00 LO V=i LLO O� M M h L� O M co O r1' M N T-I H Ln r-1 r-I O ,it d %o N M O N h Ln H M N h O N O M N O ko W O ko V�i CDcr 00 \D e-1 CD %D L� O co V-f rl ft to O CO O w Ln d' Ln (� 0�0 ON r-I M Ln MD cu N "d •b Eii r-A �i 0 o o m k '{n�+i p � ��-7L+ W � i� to d p w F A y A A W W 0 N cn b u � to �-] k. '� p a A W u In W Ln 0 N w In 0 a a LLA Z y y id z Ln ! q to W Qi Cl p N N N N cu N 0 A U w w'a 000 °1N 0 o Q� � a •i� mo a, a z a �a a! M b-• H N Imo iro. L+ I! H p �„y tj ,P L: Fi F'i (� G 5 Q 0 0 0 0 0 0 OF A A OF z w A E� E-F FF q L� 6i O O M O r-1 N M d' O O O r-1 d' NN ]Ln h w O\ O Oh O� O` T ON 0� ON M M M M M M \D %D %D ON O% ON r, N M tt Ln LD I` 00 Ol O a-- N M '� Ln wI� 00 N N N N N N N N N M N i� M fMn A R T O F T II Fiscal Year 2021/2022 Annual Budget 173 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 ROAD transfer. This sales tax transfer was eliminated by the State of WORK Illinois in 2000 and replace by certain vehicle registration fees. In 2010 the municipality issued a $3.5 million bond for local roadway AHEAD improvements and the majority of MFT expenditures are to service this debt. This debt service was retired in FY20/21 and, beginning in FY21/22, the entirety of the Motor Fuel Tax revenues will be dedicated to the Local Streets Resurfacing Program. This, combined with a local motor fuel sales tax that was implemented in FY20/21 and Illinois Bond Fund revenues will permit the municipality to implement an annual Local Streets Resurfacing Program of $2 million per yer. 174 0 0 0 0 0 0 0 co _ M _ OO O .--I O h %D CD CD O M O O O O r'i O O O Ln \ \ \ ryj \ \ \ \ p 6 r4\ OC O� �, �'? Ln O N O Ln r-4 r i ri _ r�i O 1 ' o O i i O O N O Ln n %�o O O Co O M O ri ri m O� O in O d' O O� LO Ln Of O O� d' M N d' (\ N N O CD ON 00 v N v Ln Ln v In I Ln CZ)Lr) O r-1 ri m O O CDLO N CDN M ONm �D O CDko d' O m r-I CD m O M %.D LO N N vlrM-I O O% ON d N m In I� N � 00 v H M O r-1 M H � In ko O M rh ri M d' m CD h 00 00 O% N d N N �O D ON N r-i %O N N In 00 0O ON tD M N Q1 Ln d' M m Ln O ON r N r-I M � O l0 O M h O d' ON O O O O CD ri ri O ri O ri O coO; 00 [� O Z N rr Ln ON ri ri -I N OLO NO O •• �ri N Ln M cNI I %60 00 N I dO ri C> N r�i N M 00 m i i i M to O O Ln N O in d' C7 co � Lr) d p ON m 00 M t� ri ri Ln rM-1 In ' Ln M N Lf) O O N 00 re)co r-1 O� O; r�i co LO dam' OMO O M N `r O cis N 'O A W vl i I w � N ro La W 0 CD a b Y A w v N G c 0 O Z p o z V) u o o o r a) a) rn w w CG in L. W U u 'd y 'd 43 40 N m CN Q' L F ai E- W iro (11 a H F* an (nn E� cz d q w W b0 W O to O O CD �D m 0\ O O Ln OA O �• to m W e-i ri O O ri ri N N 00 00 O� O� �p 00 00 O pp M m m m M M M M M W W r- N M d' Ln lD I� a0 m O N m 00 m O rn N N N N N N N N N ro WE liii,4 •� .. 41 11 to tool, A lib too i. + rfir 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. O O O O O H O O O O O Ln 4D O O O O Ln O O N O O O O ON O O O C) CD 00 CD C)O O O Lli C:)10 O O � O 00 M M A A A A A A H r-4 o O O o Cl o 0 0 — - - m O O O Ln O O O N O O O h O O O O� %D C) N' N' O O O H O �--� O <I' Ln H N N 00 co Ln O O O O O O O O O O O O O O O O Ln N' O O O Cl Ln O O O Ln O O O O O O Ln Or LD O O O O h O O O Ln O O O O Ln h W h O O O O Ln O 00 m N O O O O N 06 00 d' W H H M m H 'd' H H N N m M O N Ln N' � n 00 m O O kD O m In %D 00 O N O r-1 O O ON '�D H "t N N' O O O 00 N ON Or N' M N' N, H h tD O0 O M N' N' N4 O M N LO coro �D r1 h h m O kO O L\ O OD kD Or N M H � N C) N Ln N N %L r-ft i v ri NII O O O OO N O O O O O O O O O O O N O O O O O O O O O O Cl O O O O 9Q' O� Cl O O O O O O O Ln O O O O Ln Ln h O O O O O O% O Or N O O O O N Mft Z 00 N 00 H H H r-I N H O H H t' N to n L H rmi H h Or N 00 M O h O M O m h N OO OO H N H �D � LD LO M In � H H L) C)h cot N �D M M H m C)<h %D h Or %D M N� C) Lfl ON Or r-ii kD m O co h LDO h O CD m M H M H N' M N' N N' m 0000 N r^ rj r1 t-1 N•I rO h Lt 00 H �D C) C)M N O Ln kD Ln M h V-1. M 00 M \D M ON H N' O kD O 'd' Ln 00 %10 Or O M M LO %D H N H h Ln O M h 00 0r %D H Or 00 O N M LO M N d' h � O N' r� N m 044 00 L� m h -t N' C:)M H Or N' � H m CD C) H M r�-I M N rN-1 N a� H H O N'� 00 CO L� M O M N H in O H Ln 00 00 M H 'd' C)1� co Or L� O� N HCDM Ln H Ln M M co C) O 00 O� �D [� H O H d' N N N 00 LD Ln (� O^ hCYI N r-1 l� LO Or N N O� N d' Ln r-1' 1� m Ln 0� M 00 N N M M H ON N N Ln N H LnCDH H H NW O A aL 0 �v au cn 04 cc4 PA : d a, u�'i cu o (A m u 0 �, 0 0 O 4 a)o0 F '� C 0 � N;fy p tWALpo CoN L" p �W Ao 0 ai HOu U OOOO i� Oup.aa a 0 00a zCA ' o n o �a as > ww H @ W b 0 j Av rd Z A A A A Pa A ww' w0' aw F A A A a a F a Ljr o o tw Poo ,c�++ Ln O In O O O O N' to In N O O O O O O Q D L� CO CO Or H N 'd' 00 H 'd' W O N' l� 00 Or O O C h 1� h L� N N N LD w 00 00 O O Or O� O H 00 Q%P.V M M M M M M M M M M M M LD kD �O LO W A wN W N M Ln lO 00 Ol r, N N N N N N N N M M M r— rN- N (r0'1 M fin 178 �,,r ll;" e' ,. • • • Tax Increment Finance Fund - Overview The Tax Increment finance (TIF] Fund accounts for revenues and expenditures related to the city's Downtown Tax 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. The City is currently in the process of coordinating with other taxing districts to extend the existing TIF the permitted 12 years. This will be a primary focus for FY21/22. 0 0 0 o 4 o 0 0 0 o f _. 0 0 o m m 0 0 o M o 0 0 0 �• d4 O M O QLn O O O Q N O O O O O O O O O O O O O O Cr) O O O '-1 co O r1 ci Ci N Ln L� d d -- -- N O O O O O Ln Ln Ln r-I O O O O CD O M M k.O O� O O O O O N N d' Ln 'd4 d � m Ln mm I h N L� co O O o O O l� O Ln N 00 p co O \,O O M M O LO O ri W O co N Ln M ON �--I O co N O n _OD � N O O O O O O O m m Ln O O O O O O O O M M kO O O O O O O m M m O O t-1 rt N O O N �4 M co co Z M O O Ln N N O O M I O m M M ') C1 O w l0 CD 00 N O 0 lOn n M ko N M to N M N 0 to V1 CD M d d N N ci N W v O� t\ c-1 N d' M N C' V-4 O Ln O Ln O ko M M O N N t� O M M d' �4 O O O O O� r-i to CD �O d' \O co •-1 � k N � W CO Ln Y N d N N N Av 0 CA O� Ln Ln O O Ln Ln d' O Ln n N O m N m �o zi M O M Ln O . v pmp co N 00 O� �d a� ou W u °U rayoorlO U Z N N d N x O � o C7 Ll W m >W ro o o b U y aL"i a�i Z C F b C G d F u o+ C o t. Z CO O oa w a c� a E� E-F ��" ❑ w F,y •�"„ O O � Oo -A %CIA O CDC O N co .-i ON Q` O% O` ap M M M Ln lD co O\ F PQ W c- N m 'd' Ln LD m mrm-- Ln Qo r M Ol O N M V' Ln N N N N N N ZBZ Fiscal Year 2021/2022 Annual Budget 183 Debt Service Fund - Overview The Debt Service Fund accounts for Lie bonded indebtedness incurred by the City's General Fund, including bond and interest payments. �n , 0 G C rI O� O �� M n 0 0 0 0 0 0 0 0 0 0 0 0 0 p O In O M �D 00 O O� Lfl �D O _. d' 0 0 o O o d; o in o �o 0 o rn d' o o� p � � 00 � O O N � .-1 00 �O �D M �D � .-i � q q� q rn '-1 c-i d' q� zk �k �k O O O d' h � � d� o o M �o c-� �n o 0 0 0 d; N O M �D 00 O� � O Q� Ln v h c-� M h v O� N Ln M �--I O �--� �O O� l0 In O �O �D M N �O �O N � v � rj O N O N M L() M O N h � M O M O M � pp M O O� N h M N lf') M O W � In r-1 d' O M N M M LI') O M � � M ,f,� N �-1' N N O h tI] O �O N h h '� — _ O O� �O ul .-1 �"'� �O N h M O In d' N �--1 O O �--1 Q� r-I � � p� M M O �O �O �O O� � O d; N [ r-� � d; lr r-f Ln O N O O� h O h rl W v M N M M OO �-1 O� W tf1 M � N c-I c-1 �-I M O p� '-i O c-I r1 — O O O� O Q� � M N p i M Ln O �D N h h h O rl O r-I d' '-i � In d' M O In d' N �--� l0 O d; In Q� N h O� N N M O �O �O �O O? � O h N O� v N d; h ri Ln O N O O� � Ln M � N M M OJ �--� O O Q� �-/ O N c-1 `-1 e-i M r-I '-1 __ _ I N W O N In O h d' Q� Q� M O d' O� M O N r-i O� d' O M O In O d' N � O �O Q� � M � O M O N O M 00 d' N � O Q� Ln lf1 O � i h M lf1 h N Ln N d' � '�-1 ON M M h c-1 O� O W �D M � M N rl M r-� M � � �'"� � v i r-i' LA O� N Ln O �O M Q� O O O d' d' W `� N d. M d' � M O N O� N M W O d' h �--1 h � d. N N O O O O� [� 6� N O n O� h N O h O O� In d' O� O h h In O N h O� h N N a--1 M M M �--� O l/1 � M N �-1 h �--I M � d' � � M �O Q� Q� M lf1 O �O e-1 N Q� d' O O� O � O � ,mod, h O d' 00 M O lf1 �O �-I 00 N O O h 00 'd� d' Q� In O h O � M h O �p �O n to Ln tf1 O r-� N O O� N � � � d' N N M c-I h c-i d' � d' N � � M w ti � U D W � .F. Q b - a� � w � m a� q � bA Z �, c� c7 � � a-+ C4 (i] � � � Ty W(� W W ��� o 0 0 0 0 '� q C p v�i u � � E--� w � w w w �] G N �� U a� i ro m o N v 4. u �. �. �. w 'C i' �tl a� W z p � cV vYi � Pam. � � � w w w w w � � � �, � '� cci •r � � 'C a q � w � coo � � c�u ["� � � � � F -- W m iii-�i� � o q o o F, u" � � i.. �, F, � o o a� o � Z v w � c� m w a E-� E-� E-� F-� E-� F� F m m w oo F-� � � __ � — w N � O O O u1 �D O� � N Ln 00 �O O O O O 'F'� � r-I N r-I c-1 � � h h h h OJ O O O O Q � � N N O� O� O� O� O� O� O� Q� O c-1 N M Ln �� M M M M M M M M M M M h h h h 'd A cn _ "' � N M d' Lf1 l0 h pp Ql � � � � � '- � � � � ON N N N N N N N N N� m m b a w .b ,� � � � � w u- Ub a~i a 0 o w � b ,p � F. C u C � � W 185 Fiscal Year 2021/2022 Annual Budget 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. In 2020, McHenry and the world navigated the Cov0d-19 pandemic. The restrictions imposed by the State of Illinois closed the facility entirely for over 3 months. Extreme restrictive mitigations lasted throughout the remainder of the 2020 and have continued into 2021. This has had a near catastrophic impact on the membership levels at the Recreation Center. Membership levels have hit the lowest levels ever at 1,300 active member and over 250 memberships on hold. 18� Recreation Center Fund - FY20/21 Accomplishments Recreation Center • Through the end of February 2021 we had 1,386 active fitness members. 78% 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. These non-traditional memberships account for approximately 70 additional memberships. • From January through end of December, the Rec Center received a total of 63,614 visits from fitness members. • Group exercise classes tools on many formats this year as mitigations forced the suspension of live indoor classes on and off for much of the year. When the weather allowed classes were moved outside. Entire class formats were moved to the virtual world, utilizing platforms such as Zoom and YouTube. In all, over 18,000 unique attendees utilized our group exercise classes in 2020. • We offer 55 classes per week in categot•ies ranging from HILT, Strength, Mind/Body, Active Adults, Barre, TRX, Cycle, Cardio Kickboxing, Dance, Pilates and Kettlebell. • We lost many members due to the Z020 Covid Pandemic, and many more placed their memberships on hold during this time. However, during this critical time our staff went above and beyond offering zoom and YouTube classes throughout the entire year, made personal wellness calls during our time of closure, and have kept the cleanliness of our facility of utmost importance. Due to this fact, it not only continued the family like atmosphere that we strive for but also created a safe place of wellbeing for our members that is so desperately needed during these times of turmoil. Now that our members are venturing out again, they are also bringing their friends and family to join them, creating new memberships. Ef:L Recreation Center Fund - FY21/22 Goals & Objectives • Transition on hold members back to active members and add 200 new members over the course of the year. • 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. Recreation Center Fund - FY21/22 Performance Measures ... -. 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 What is the value of a Transition members on hold membership? Are we Rebuild membership base Membership Rebuilding back to active status and add continuing to offer the most dramatically Impacted by the 200 new members for the year current group exercise classes? Covid-19 Mitigations Are we maintain a clean facility? 190 0 0 0 0 0 0 0 0 0 0 0 0 0 0 O N O LO Ln r-1 h O O O O N O O [� O 00 O O Ln m Co O m %0 O o O O O N O O O O O al r-1 O O O O O Ln p.' h N y N to M L� Ln Ln M ' O O O ' O Co ' ' O O M Ln Ln O O O O O Ln m v O o O O O M v v h m O� O O O ' O O ' O O O O O O ' O ' Ln LO O Ln In Ln CD O O O CD O O CD O 00 M O% N h N O O O O Ln o O Ln O ON LV co Ln O CD Ln M d' Ln r-I a O .-1 H cn .-1 N M i Ln N O O O 1 ON O O <}' O O Ln M O Ln co Ln O Ln Ln O O r-I O O d Ln ' CD t� O O vi O 00C) O H M ON h m O m it O ,-1 Ln N N d' Ln co i N O O O ' O O ' ' O O O O O O ' O ' ' ' Ln Ln Ln', O O O O O O O O O O O O 00 CO O Ln ci O O O O O Ln O O Ln Cl O� Ln ►'t O' r-1' t-L' tb rq O N N Ln m 'd' Ln to r-I r-I Ln H LO Q U _ Q N ! r-1 d' NCDd m N ' 0� CD It Ln LO Ln d' O lit I n N N N co L� ON O N ON O m r-I O t� Ln ri M r-t M Ln 00 O O O ON t� 00 r-I O� N N ft N-I N d' M N�--1LnNLo 0000 OD Q Ln, Ln iO Q d' O� M N kD kD ' ' M O N M O% tT %D LO ' d' Ln' LD N ON L0 co h M LO Ln ON O% M Ln O M r-1 h O r-I N M M Y LG1 N �-I M ,-I N d' O Ln h O a T cM M ON d O LO M d l� LO N 00 co N N r=4 N t� k N M %t N N M Ln N O Ln Q Ln O r-I N d' N M O O Ln Ln O �l 'd• O� O M CO Q Ln ,-i LD � M LO e-1 �O-I r4 0\ t--I M N 00N Co LO V q w N o 0 rB W) cri N 00 h .n 0 J F •Ly m aCU Wap a q w w a�i al W N tU ila I G y FA r+ ►� Qi N O of to a) a) cc!! {d tU O 10 tU to U ( a V to 0, F., p O {O itn p°' b a 0 L s 0 ca o v y 1d p 42 q (L) w ai btn O (L)N o W V d � w 0 u o o D fi� N 0L. 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H ca 0 w 6' W O w ro U (n cd r w m a : a �ti NO w � nw �, oq atew,' w 0 � o" x` Aft w ::I 'd b o qw w b °1 � CO w>aw Y� o Hco 00 o w ° ' cow a w w v a a 0 p mU tw q w b w' w d tw rn w a In FA w 0) rn In 0 y ( V a� rLy a) a) a) a) aU aU a) w a)oi� 0a Sy tqi �-' co W CO ccd Ca ccoo cca N N CO (a cd cu w F' .pp p p, w' cn 0 con cn cn cn V) 0 w cn chi) chi) x A a w F u u a F u a F U o o O o o M o M o M o M o 0 0 0 0 o O 0 0 o M o ri M o 0 0 Q r-1 M Ti M M d' d' %40 kD t� t� 00 ri N M d' ri N ri ri O ri ri N N h M ri O O O ri ri ri ri ri ri ri ri ri ri M M M M d' d� M ri N N N M M M d' M �D d' lot d' d' got d' d' d' d• d' d' •d' d' d' d' d' d' d' d' M M M M M M M M M M m m m m oV qc�l d d d Ln LMn L`tn LMn u�i u�i u�i u�i Loo Lo LND LSD LMD LSD LrD 192 N4a0 0 0 0 0 0 0 0 n o o o 0 N O O O O O th d' M O Ln O 00 H O O O O O O %D O O O O O Ln O th N O� M O O � � O r 00 > y fV O (V �-1 M o----- o 0 0 0 O ' m th l --- Ln T�A Ln n O N M O N M a M v v � v M v N O v —] O O O O O O O O ' O H N Ln M h co O O O In O O Ln Ln O h N O O In N O O l; O% O 00 O M H h 4. 00 W 00 d' L!'1 N M N M O% M to ON H H � v tD to O CO O M O H %D �D O M CD N rM4 O� McM co O d N CO OHO N �O Zvi O O O O O O O O \,D O O Ln 0co 0 00 00 00 rl' �-1 d' �O 00 N I z M N M 00 H M d H H H h 00 h O h l� d' �D H Lfi to O ll'1 h 00 M N In O coO 00 N d' CD 0 M H M N 000 Cl H l� N d H H v d; CO N Ln 00 O h 'ch O h N to 00 H M rj 00 H M H H H to L\ co N H LO CA LnVIA co VIA l rl LI1' �Ci 0 � M Ln 'd' M H N l� G bbA to clti W +� N N W a R. H �y m a M w `n F' PWG u u \ CL) o M U Cd � u u A W N Fi 0 W y F y z N C1 a � a a a u b q Ln Ln W w a ZO N v vl a) P m +� � o 0 o f p; u o w w 0?1 a m q N w co ca a L^�o 41) a a u (. u 0� Ow m ao ocra) oco u n n O k O F m m W 0 F a. o4 F F O H O O a- i N O O CD O H d' CD W H CD O O O O N N ��. H H H H H H N d' N M 0 0 O\ O� Lp �D LD %D �D LD h 00 00 O\ ON m O� W N M c}' Ln LD CO Ol Co N M 'd' Ln lD I� 0o Ol O N M d' Ln U I�� n r � r 0o 00 0o 0o O O 00 OD O M 0m Ot 0 0 0 IIE Fiscal Year 2021/2022 Annual Budget I� ecial Service Area #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 pro)ect 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 SSA is to expire in 2024. 195 0 0 o _ o 0 0 0 0 o o Q Q as 4k i 00� M M Oi N N cn m O `0 `D I 00 �} j 00 c In N h 00 00 dim, N14old 00 co r1 Ln 1-1 co co N rA 0 0 0 0 0 0 0 0 C\ l 7 Ln lq' d d rn o m m v �D v N c-I h N h d 44, 00 W co h l� O N d d' N co O7 � Ln W co cd �' G w a � � N mpo o0 En a v W — E W F Q i o v A lit z p z (d 0 �D w F Ix u C d d o F 3 bA w � � r � ►+1 CD N N ON a aA M M M Cf� Ry N � W �— N M V' Ln L.0 I� 00 0) O N M 'd' Ln l0 i� 00m CD N N ill il: •'_ ���� � see It to No 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. 0 0 0 0 0 0 0 O O O O co N � O O O N to _. O_ �. O_ O _. O `.. O l� 1� O CD'Q4 d' O tD O O co O O Q rl Q Q Q Q Q !a Q Q `i OO c^-I i -_ _ i i i O� O O� O O t� 00 O 00 Ln O d' ON Ln O Ln Ln N o Ln ON d� Q, v v (Y) �D v O� v 00 O O O O O CD00 CD O CD O Cm) O _ co na. Ln 00 O� O O v Ln M M 00 0o m t co N d' N CD co M M kD O N d' 101 m O� m d'm-I N N co 0o O O h h 00 O M rl N O O 'd' 'dam Ln O m 01 00 Ln Ln O O Ln ON CIA 00 OR t� N N O M d' rA N d' 00 rl co O rt O N Ln- r1 M rt M O t� Ln t\ m M rl N N Ln O %.D k N Ln Ln 00 N 000 H M L-i m OD O N LD d' N O t\ 4..1 Ln M M M d' H d' N kD ' c-i l� Lf) N th O% N CO N O N rl M (d O N N 00 OD N M 00 r/ O� ]L Ln � N t� rl N LO 00 t\ 00 CDN LD ko v LO A c-I N t!'1 %%0 m ON d' N %10 r-1 O ON rl Ln ON M In O O d' h ON Ln O — n�� I� rl N rl rl M N O N d' 0rq 0 Ln O �0 T. � � rt O i--j M CO N r-i v r-I N � w t o a�i u o D w _ yo (1) 5n. try m 0' `p° a o W w u) V) axi h o A w Q �+ ra a s b o o o 0 0 �j �' oo j (1W w p p 0 w ai ai w Ly tzao > p a W v u O ° v t~ L C4 p p w w N 4 a (TJ N z N v v °; F a ro v i a F" LO mro O o co � h cc «7 L O z u a: P4 F E F u .l Gn to a E� F o +3 0 0 o N �D rt to 0 0 o O o o .-i wbiO Q .n.l rl N LD 00 00 h h r-I O CD CD CD CZ) CDpy N N h 00 co m O� .-I rl N �D 00 O` D\ bD M M M M M M M Ln 00 co co 00 co (INb biD U 0 .— N m d' Ln LD I� M mO Ln lD 00 M O N M d' Ln LD 1� 00 ID�— N N N N N N N N N N m M 199 lot, l fly 1 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. aos CCD C C 0 0 C 0 0 0 0 0 0 0 0 0 0 0 0 0 o 0 0 0 0 0 0 0 0 0 0 0 0 O� N N Ln Ln N N d � I ON O O ' O r-1 ' ' d O O O Ln l� o O 0 N 00 ON ON O N v N N N ON O O ' CD V- 1 d o O C7 Ln h o o O N v O� O� ON ON ON M r-II O O Ol CIN N 06 00 N v V ^ C) O cu �i CD Y a i O l� -1 LP1 00 to N N m r o 0o vi m O. o —lit N N N Ln m d' v N N r-I N b ;MT01 �I N m W WWa w N a Q 4m)� N N U Vi �Wj 49 N L C N F, 2 F, cl A. E, w fs7 I Q F F F z v w bD .�z. u u � C7 0 l!') O O) Q CD C ) co �0� M M M co 00 qqf N 'b U � W �-- N m 'd' Ln LO i� co d> O N M d' Lo %D f� W Ol O N .- N N N ZOZ 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. 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 amapproximately 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 Public Works. 205 FY21/22 Water Division FY21/22 Water Division operating expenditures are proposed at $2,456,112, an increase of $7,164 from FY20/21. This increase is due primarily to personnel cost increases in the Utility Division that the Water Division is responsible for. Budgeted Operating Revenues for FY21/22 include a recommended water rate increase of 8% (3.54 to 3.82 per 1,000 gallons) in order to meet the budgeted operating expenses. This is the same rate increase that was recommended foil FY20/21 that was not implemented. Rates will be further 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 FY21/22 for capital projects. In FY21/22 this amount, along with Water and Sewer Fund Balance, will be used to fund the following water system capital project identified in the Water and Sewer Fund CIP - $200,000 for Route 31 Utility Relocation Design Engineering. Overall rate increases will be discussed on the base rate at a further date when repair/reconstruction projects for water/sewer are discussed and prioritized. FY21/22 Wastewater Division FY21/22 Wastewater Division operating expenditures are projected at $3,294,276, a decrease of $82,230 from FY20/21. This decrease is due to lower GO Bond Principal and Interest payments due to refunding the 2010C GO Bond. Proposed operating revenues for FY21/22 include a recommended sewer rate increase of 5% (4.00 to 4.20 per 1,000 gallons) in order to meet the budgeted operating expenses. 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 FY21/22 for capital projects. Lhisamountalong with existing Water and Sewer If Balance is used to complete capital projects, in FY21/22 no capital projects are identified to include in the budget. Overall rate increases will be discussed on the base rate at a further date when repair/reconstruction projects for water/sewer are discussed and prioritized. FY21/22 Utility Division FY21/22 Utility Division operating expenditures are projected at $1,017,301, a decrease of $29,109 from FY20/21. Personnel Costs have decreased by $21,609 due to restructuring in the Public Works Departments. 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. 206 Public Works Water Division Public Worlcs 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, thereby 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: • Production of 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. • Operation and maintenance of one booster pumping station. • Provide meter readings to the Finance Department for utility billing for City water and sewer services. The Division manages meter accuracy and replacements as needed of approximately 8,250 water meters. • Respond to consumer inquiries within 24 hours regarding water quality or high consumption questions or genera] concerns. Treatment Operations Manager Russell Ruzicka Water ROTC Operator Bryan Scheel Water Operator II Doug Mace Water Operator I Jason McMahon �J Public Works Water Division - FY20/21 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 malting available information consumers need to be informed about their drinking water source and water treatment technologies. • In 2020, the Water Division produced 750 m}pion gallons of potable water and provided meter readings for nearly 8,250 water and sewer accounts for billing purposes. • Received 24tt� consecutive annual fluoride award fi'om t}ie Illinois Department of Public Health. • Installed over' 90 meters for new construction. • Completed a replacement of the water SCADA system. • Initiated a Water Operator Training Program. • Implementation of Waterly reporting software. • The Water Division had no reported personnel injuries or accidents in the past year. • Assisted in the rehabilitation of the We118 raw water line. r�• Public Worlcs Water Division - FY21/22 Goals & Objectives • Continue to meet or exceed all Federal and State drinking water regulations. • Continue to provide the highest level of customer service possible by responding to customer requests within 24 hours and make information available for consumers to be informed about their drinking water source and water treatment technologies. • Look for new opportunities to improve customer service to the consumer. • Continue to maintain and improve water treatment facilities while remaining in budget, • Continue to be injury and accident free. • Cross t►•ain employees in both water and sewer treatment. • Continue to develop and train both new and existing licensed operators. 210 Public Works Water Division - FY21/22 Performance Measures IEPA Compliance I Achieve 100% cmnpliance in all categI 100%compliance violations with no I 100%compliance is expected with no ories violations Respond to all inquiries Respond to Customer Percentage resp nquiries and receiving onded to Response to all customer inquiries and within hours s of within 24 hours complaints. IComplaints Complete all Capital Were projects completed All capital projects completed in a timely Capital Projects Projects on time and within on time and within budget manner and under budget budget Training I Operators get all current I Need tine employee to meet I Operators will be aUle to keep their trainingtraining schedule water license curent. Safety -Personal I I How many reported I No loss of work days and help stay under Injury/vehicle Accidents Zero Injuries/ Accidents injuries/accidents budget. 211 Public Works Wastewater Division PuUlic WVA %a Wastewater Division Mission It is the mission of the Public Works Department Wastewater Division to protect public health and the environment by treating sewage to meet stringent environmental standards prior to discharge. The function of the Wastewater Division is to operate and maintain the Wastewater Treatment Plant and nineteen lift stations. The goal of the Wastewater Division is to efficiently maintain these facilities and to produce plant effluents which either meet or exceed State and Federal standards. The division is also responsible for the removal and disposal of all 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 the City's Wastewater Treatment Plant as well as the care and upkeep of nineteen lift stations. • Conduct daily testing to ensure the treatment processes are working co►-rectly and make any necessary changes to operations. • Dispose of all treatment process by-products in a safe and cost effective manner. • Maintain records on the amount of wastewater treated and the quality of water discharged into the Fox River and report this information to the Illinois Environmental Protection Agency in compliance with NPDES permits. 212 Public Works Wastewater Division - Organizational Chart 213 Public Works Wastewater Division — I 20/21 Accomplishments • In 2020 the Wastewater Division continued to maintain compliance with the City NPDES permits. The City of McHenry met or exceeded all permit requirements. • Completed NPDES permit renewal for the Wastewater Treatment Plant. • Successfully cleaned and returned 1.3 billion gallons of wastewater to the environment. • Maintained reduced sludge disposal costs by operating the sludge drying process 29hours a day, 5 days a week. • Reduced overtime call -outs to 27%. • Completion of Dislc Filter Buildout, commissioning of third ultraviolet disinfection channel, and automation of pumping station sub -stage under the current IEPA construction loan prior to contract closeout, • Completion of the step screen building heating project on time and under budget. 214 Public Worlcs Wastewater Division - FY21/22 Goals & Objectives • 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 which minimizes the potential for a sanitary sewer overflow. • Continue to analyze ways to achieve the high level of service while minimizing operating costs. • Explore alternative disposal methods for the dried sludge product such as sod farms and landscapers. • Complete the dryer feed pump upgrade project and further refine the after-hours operations of the dryer. 215 Public Works Wastewater Div. - FY21/22 Performance Measures .. Performance Item Goal Measure Proposed Compliance with all NPDGS 100% Compliance with all Annual inspection/evaluation Satisfactory annual Permits issued by the IGPA permits at all thnes and monthly reports inspection/report and no violations on monthly reports Sludge disposal Further lower sludge disposal Secure alternative disposal Reduced or eliminated costs methods disposal costs Lift Stations Reduction in number of off Track number of call -outs to Reduce overtime costs hourcall-outs each lift station 0 lost time days due to work Safety Reduce lost time hours due to Continued safety training related injuries work related injuries Sanitary Sewer Overflows Prevent sanitary sewer Operate Actiflo storm clarifier No sanitary sewer overflows (SSO's) overflows at the correct capacity Public Works Utility Division Public Worlcs Utility Division 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, sanitary sewer collection systems and storm sewer system 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. The Utility Division also maintains and repairs the storm sewer system. The Utility Division also serves an emergency response role for winter snow plowing operations, after-hours water main breaks, and after-hours sanitary sewer backups. In summary, Utility Division employees undertake the following tasks: • Maintenance of the City sanitary sewer collection system. • Maintenance of the City water distribution system. • Maintenance of the City owned storm water infrastructure. • Support of winter operations. • Emergency response for after-hours utility emergencies. 217 `C?7 1 Field Operations Manager Steve Wirch Utility Supervisor Mike Lange Operator I „ Operator I Esteban Ramirez 11 Sean Johnson Utility Operator I " Maintenance " Worker Todd Sasak Pat Maher Utility Operator I " Maintenance Worker Ryan Cheney " Clint Greve Maintenance " Maintenance Worker Worker Tim Lechner ■ Paul Clements Public Works Utility Division - FY20/21 Accomplishments • Replacement of 9 fire hydrants and installation of 6 new fire hydrants. • Flushed all of the City's fire hydrants for spring and fall hydrant flushing programs. • Cleaned 118,000' and televised over a 100,000' of sanitary main. • Repaired 10 water main breaks. • Repaired 11 water services. • Responded to 17 possible sanitary sewer backups. • Cleaned and televised the storm sewer system in advance of the 21/22 Road Resurfacing Program. • Repaired and rehabilitated storm sewer structures in advance of the 21/22 Road Resurfacing Program. • Assisted with the construction the new Venice Street parking lot. • Repair of 2 leaks on Well #8 raw water line. 219 Public Works Utility Division - FY21/22 Goals & Objectives • Continue to keep the sanitary collection system well maintained, which includes cleaning and televising the entire collection system on regularly scheduled intervals. • Reduce inflow and infiltration in the collection system through the Capital Improvement Program which includes the sanitary sewer main and sewer manhole rehabilitation programs. Replace old style manhole covers with "new" sealed covers. • Perform annual rooting maintenance of the water distribution system through the annual water valve maintenance program, annual hydrant painting program, fire hydrant spring and fall flushing programs and the water main replacement program through the Capital Improvement Program. • Install 10 new fire hydrants to improve water quality and fire flow protection. • Continue ongoing mapping of the storm sewer system in the City GIS database. zzo Public Works Utility Division - FY21/22 Performance Measures Goal Measure Proposed Fire hydrant replacement Replace outdated fire hydrants Number of hydrants replaced Replace 10 fire hydrants Clean & televise 100,000 lineal Clean & Televise sanitary 100,000 lineal ft/year Lineal ft/year ft/year sewer collection system Complete spring and fall Flush all hydrants spring and Completion of spring and fall Hydrant Flushing hydrant flushing programs fall flushing programs Reduce inflow/infiltration Grout manholes/install sealed Number of manholes repaired 10 manholes repaired frames and covers 20% of hydrants painted & Water Distribution System Hydrant Painting & Valve Number of hydrants painted, 20% of valves exercised Maintenance Exercising number of valves exercised annually Amount of storm sewer Complete mapping of the Storm sewer mapping Locate and shoot structures structures shot on GIS storm sewer system 221 0 0 0 0 Z 0 0 0 0 0 0 0 O o0 O O O O�ffi O ffiO% O M h M O O O O r-4 O O O O !OZ) !O) !O) !OD O !O) O O Of h O (V O O O t� 00 O %D O O l� O ON Ln N ]IIDrq vMN v O O O O O O CD O O O CD O 'd' O N O O O O O O N N O Ln M O M Co CD O O Co O l.n Ln [\ O N Lo D. 00 L� Ln h Ln Ln O M O Lr) O �D h Od' rN-1 h NON M ro M �D d' N �D r-q ON O M n O O O M O i ON O k _O - O LO M O r-q N O O O O h O O M 00 O m Ln '�h ON LO %�D O 00 O O% LOft O M 00 O co_ Lr e-1 d' ON LD kO M <h O r4 r-I M O - ON N N M N M M O% h 'd N N r1 Ln N N N N O m O O O O O O Ln Ln O O O O O O O O O O O O O ClW O CD M O CO O O O O O O 00 W N O O to • O h Ln l� L.n Ln O m N' hft Z M Ln N h N N M h \D N %40 � N N' lV r1 W O 00 N O O Ln O O ON N Ln M O M m E.y m O h to H O N O O %D N d' M \D N N M V�i w m r14 O eh m O N N % O W h N (� N N 00 N kO Cn M r-1 M V=4 O 00 c I ri %40 N O `r a. 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N d' N 00 Ln LCn tD r-1 jy � O � W Ln W L� CO M ri ri M ri h 6� O h l� r1 N �D N 07 c �D CO O' M N M co c M M Ln CY) \D Ln G N � N M M dam' N M r� Qj fV N Ln M N -- M - r-i Lo �o M M r-4 �D rn � M m L> N O O N Ln M N �D M N (� M O �O d' O O� O ON M O� N �O � 00 M ri [� !I 00 00 M kO CO Ln r-I t� Ln Ln �D 00 CY\ � L\ ko N � ON OH � Q� O0 O� d' W d' h N d' r-L co Ln N Ln r� p+ CO �D �D rL M 00 Ln n CDLd' O m LO 00 m h LO d' CDm M N Ln H h fn L� Lo M M ON A O Ln Ln h N d' rq N r-I 00 O! \10 N d^ T 00 co M r- N r-I ON Co OJ N r-i N L� M O Lo MO 1� dM' d' W cr% NNLn �10 LO N Ln Kj rN-L 444 'L9 0 cL o n Ln cL m H Q� u + pp O u_ U_ O 0 - N N N CJ 00A Ln Ln N \ N Qi rO�.L N O W N O O � � O W O O Ln CO W a x A A A C7 PO F _- -- - -- - Irnt O CD O CDM O CD O i \CDM rO Q O d' rA HN M �O kD N M ON r-4CDJ �D \,O \,D lD �O � OO M NOM M LM M M M M M M M Ln 7W Ql O r- d' Ln N M lfl co O N N Lw Ld N Ld Ld C. (U O Ln O Ln O O O CD O Od' CD N a a dM' a� NI 11) OMI NI NI NI NI NI NI NI ml M o 0 0 \ o o \ o o \ o 0 0 0 0 \ \ o o O� O ko 0o O _ CD t� O CD O O CD0:) O Ln CD O N M d' O O O h O O M O O Ln Ln O O O O O O M d' d, o O h O O h o� O O O O N �-i O h O O N O O NM O O O O O aco LLn N N 12) A —- o 0 0 0 0 0 o o-- Q o Ln - t` Ln o 0 o Ln o Ln o o O m M ON Ln Ln Ln N O N o O O ON N r-I O M M d' N v v v v v v m O m d' O O O O O O O O ' O O O O O O O ' ' O M O M d' d' O O O O O O O Ln O O O Ln O Ln O Ln O Ln O 00 Ln '-1 M M O N o O O ko N Ln O O% Ln O h O O m � i Ln O Ln d' Ln O' r-I O Ln r-ft IO O O CD 00 r-I r-I M N M N N N r-I d' LO M d' 00 N M O� d' .--1 O ' M M %�o ko ON O Ln M Lo T ' M M ' (� �-L '� Ln Ln M O O L� M M O d' ON O d' M O 00 Ln o% M Ln �o Ln Lo t\ d' 00 %D N M r-1 Ln Ln LO h O d' O O% O �D ON L� d' 00 N N m C-I' M d' Ln Ln 00 00 00 Ln 'd' to %�D LO �-1 00 Lo Ln CD N Lo `-1 H .-I Ln rl O O M O O O O O O ' O O o O O O ' O O O ' O M O M d' L� O O O O O O O O O O O O O Ln O Ln O Ln O oo Ln t� in Ln Ln N Ln Ln O Lo O Ln O o Ib O h O n O O% H Lo O N 00 O N N h O .-i O Ln 0� h' O h LO m '-I r-I m Z 00 MO ON N %o O% Ln M Ln LO M ON 00 k N Ln %'�'-� N r-1 t� N N N r-1 d' Ln L--1 O� h d' L� w 1 O L� O LO 00 O Ln LO N d' O Ln ' O h H 6� N LO H O 0� H ko Ln Ln ri d' LD �i NN Ln M r-1 h LD N M LO M 00 LO L� 00 N M d; 00 t�'Wd' N H Ln 0o 1 h O\ Ln r� M N h Lr1 M O N M M m 6�Ln '-i LD 00 co ON N L\ r11 C\ N N v r-I Ln e-1' n CD' N d' O m t� n N m �D to N d' co 00 N Ln t� N rl C) N r-1 M M r-L d' 00 LO N N d; O w M cr r-1 m O N N h d' M N LO r-I 0o t�: C) L� r-I 03 W M H .--L' O Y 00 "1 LD d' O` d' .-I .-1 N d' 00 M N r-1 L� O OD h LD r'1 M m m OD M O OD l� O ' Mr-1 c-I O LO 00 fn kD r-1 d' 00 0� 00 M h O lD d' 00 d' ko N `-1 LO r-1 N N 00 Ln N d N Ln n LD O Ln d Ln co N d N co �I n Ln r\ r1 O O� r-I 00 d' N O LO kD LO N O\ r-I N 1\ h O\ N \o 00 N O 00 N N 00 H N �--L N CD Ln N Ln V Ln F w a�i m 4L] i i a' to W U U U W v F". (U u N P L� 41 �" cn C7 P W4 U P. to 0 C al P. En W N N �' a4 N y "W-' N Q' F". CL) N m Lo CA R. Z P O a Lu wtw a y 0 Ln N 021 G] 68 ai oz on d U a� Ln a� cv Lo La GF a �74 s� w vo p Ln s F C . . u(n .Pi 0aFo wQG 1y0 0 � � w ' o U) o f u a H w u P: A H H w o in H o 0 F Q A w ro w W W 0 0 0 0 0 o Ln o 0 0 0 0 0 0 0 0 0 0 H o 0 0 0 0 Q d' Ln r-1 M M M co M d' d' d' d' Ln Ln '-1 N N m O � N M Ln LD d' d' Ln Ln Ln Ln Ln Ln Lpnp to Ln Ln Ln Ln \10 Lo lD LD 1\ (\ m m m m m 'd 1 dN' dM' mod' �V � Ln LNn m Ln o .,{(�� V^" V' LLnn L1nn Ln l�n L�fl Leo LNo LMo Leo Lwo LLD 46 LSD LO 0 0 0 0 0 0 0 0 Q� o O %D O O O h kkD N H H O O O O O O O kD O CD �D OD O O O 00 u1 M O s-1 O CDM M O y d• N M 1 �-1 1 1 0� N CO ' ' k4o O H O h ON M M v H M a N v N O W H � N v O d' Ln O H to H h H O ON M N M H O N O Q M O_ H 00 N N N I N N Ln N d M r-i O M N 00 O w M O Q d'N-I OD kD N N h �H-1 N O h ON M M %D O O LO H O w M z Ln H 00 %10 N N 00 h O N `h d M %O M d' wv h H �O m %D %D lD H d ' t; M h H M v H O7 to i�-I H 00 lD h O O0 N N d N' M d d' %D N 00 ON CV) H H O� 0�0 �D Ln N H H O% d' ON M m M ON d' d' M O h O�ft O ON% � Ln O+ d' l0 N lD M %D% M �G M H O0 d Tel LNt ) h co O N M M rml N LO lf1 H H i i r{ p � � d• In � O h �O O � M 00 ON OHi d' �D N h; N N O Ni O d' � 00 ' dco h h N h N N N N N 947 �N-i � W A 0 0 0 u U o W m A m " W Ems' d vrd y a k7 y w w (5 00 CL)G)wwww p � tol F G'a C[I FX q w cn (n V) �D W W p p [ v1 0 0 0 0 0 o ff C N N fc1 X O (L) W VOi y V) (!I fn 2 O a s i w ca wFfi v J O E" F u A o o F w a w w F OF al�11 lmlrnlrnlrnlrnlrnlrn rnlrnlrnlrn rn rnlrn 227 � I i I �I �I �I �I �I hl hl hI �I aol °DI °°I ool aol ool ool °°I ool a o 0 0 0 0 0 a a o 0 0 0 0 0 0 0 0 0 0 Ln Ln LT O h O M O m d' H O h O O h O O w O \ O O M O LD M M O O M L� O m O O O LD O O tD O C) C) 'd' O � O d' O m (V 'd' O N O O kD O o O O _ r-I C] , Q H ' M M O ' O M N ' M LJ N ' m ' ' ' O M M O r-I Ln Ln Ln LD O O O O Ln M H \D O O LO OD v v Ln LO ci T-1 .M-1 N rq v ' v v O O O m N OO W h m O L" 1 ' O ' O ' O O h d' O O %0 L\ N H Ln h O m O O O O CO 07 O O O N ri M H \O t� %�O LT ci O O r-I r-I 00 Ln m C)M M '-i C) ON N NO m d' L� Ln m m 0 m O O _m M - d' _ N O%. _ O N Ln Ln LO .. O _ _V '-1 -- m O %O ,q L'"I M h d' e-I N h co ri 00 d'LO In �-I N [� �D C) LO d' CD M M 00 d' d CD L O m M � m L-1 ON O r-I' 00 0 o Ln i m H d' 00 N N r1 ' ' --1r"I O O O O O O O O O O O w m N Ln ' O ' O ' ' H '''"( m C)O m N N �D H m C)�D C) C) C) C)\D h O O t� H m O ON �D Ln L-1 O O .-I z m M H O N M TMA O 00 cy "'" 1 Ln m% 00 r- N �-I In h C M M r.1 O M %D M O d' m In ON M d' h M m m d' �O _ oN � CD M dr-I ' r t�d' N m Ln In C) r-I 00 ON O M LP) O M N ON r1 LO LO h N %D N d^ ON co C)L-I H h M d' C) d' r-IC)Ln .ry � r-I 00 d' OD � N M LO C)it -1 A � � Ln 'L'J N M � m �n C) C) LO kD 00 N Ln M N d' n O% M O r-I N %%D N 00 LD .-I '-I LO N O 00 hl M O� N M O% O O m L� ON N m OD O '-1 QO 03 L--1 Ln rq N �--1 '-I' O� Y co CO t\ N d' d' n d' Ln In N m ON in it 00 t-1 M N N 0� M O m H O� N O O� w O LD M m w m LD N C) r-I i-I m ' C)r-I Ln h �° m T-i to Ln � A N M m O O� 00 c 1 C)M d -1 QO W M t� coI r 1 N M Ln N N rq O' H d' r-1 N LD M 00 — LHi Ln N H w4t .a. t�W .qd• N O Lei Ln N N ri rj r 1 b w �I d � N w 44 U w G v u w `" oa ro a. d W ro a °�' u N w w U a y z V0 O a a 0 G N 4 � Ln b ro ro u � cu b h rC'- p N p N O NO U h y a, Lu a -a b.0 .a co "Cy � ro E m q •° w F +y °� R F a� a`ni m F F O x A � A F Ln Ln .a 5 w u a F° w°' F O CO Cl O O O O O O O O O O O O O O O Co Q }L O\ h L-I Ln V-I 'i N M d' r-1 N .-I .-i V-I N t� r-I M L 4 co M O O r-1 M m m m d' d' Ln H m m M d' d' L-1 m LY7 d• d' d' d' d' d' d' d' d' d' m Ln M m w m Lp m V Ln LD I� co Ol O c-- N m d' Ln N m d' Ln LD 00 Ol O N LD 1� Lb Ol O r- N M 'd In lD �"' �- N N N N N M co M M M m M 228 zap H E A R T O f T H E F O X R I V E R Fiscal Year 2021/2022 Annual Budget 230 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. 231 0 0 0 0 O O O O O o 0 0 0 0 o 0 0 0 A � 0 0 0 0 0 0 CD Cf LLO LOn r-I rA 0 0 0 o O o 0 0 0 0 0 0 0 0 Ln o o Ln o o Ln .-i o o o ,-i 00 0 M N .-1 i-1 N H lMo N n � 00 O r-I O � N O Lo �i N �i d O O O O O O O O O O Lo O O Ln Ln z Co o� r� '-I e-I M M Ln d to M Nkoo lD koo N � � ft 03 IM Ln U) r-1 r-I r-I • 1 to ' r-I �D M N to O 01 Ln Ln Co 00 Ln N N r-1 N' r-1 lo' lo' Y LA Lnd °rmq° ON in n MON `-I O N M O O N ,N-I w W 3 i )PO iii......III v y N jy N N o f4 CC'777-y...111 [O w o o y F a 00 0 o u $3, z � � y � y w o a F 1 FO W A x x F z _ F o O o tD Q O M M M N lD kn ON (d M M M 0� r- N M d' Ln O Ln to 232 r1 � 1,' r{•� l i i WOO , K Utility Improvements Fund - Overview The Utility Improvements Fund was created to provide a single fimd 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. 234 235 Fiscal Year 2021/2022 Annual Budget 1� � 236 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 existing site. 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. 237 0 0 0 0 0 0 00 L\ O O O O d �h mm o o o � � A o O o Ln o Ln r+ O m ft o m N r� O O O O O O O O O O O O O O Ln O Lo O O O Ln O_ LO LO N N N '�-I ' Ln Ln O l� h n Ln M 00 00 O� r-I r-I O O M M O O O O O O O O O O O O In O Lo O O O Ln LO Lr)Z N N .M-I N V-4 Ln ri r-I CD LD ri N d' h r-1 r-1 l0 00 L� Ln N N m d LO 06 M M N N h Lo 1\ n Ln rn LO d' �1 M N %%D LO h 'd' LO O' %6D d d N M r-I M 00 00 O Ln M Ln co d' M l Ln N� Ln LO N N N M pa �I fn a w po w cu w cu En w W W u Q, F A v) p w ( W O z cn w G b y u (UCd b w z � F q a u4:4 F z F F _ �!d Q o N 00 e--I O% O% M M Ln LD ON r- N M 'c1' Ln LO r� 00 Ol O 238 i Fiscal Year 2021/2022 Annual Budget 239 Fiscal Year 2021/2022 Annual Budget 240 Employee Insurance Fund - Overview The City of McHenry recognizes that health insurance benefits are an important component of an employee's total compensation package, therefore, the purpose of 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 per their collective bargaining agreement. 241 O d' r1 M m Ln N h fn Ln 00 O m O rl �D O O� 00 M Ln %p �q O d; - 6 h LO � O m m �D m O� N O Lri m i O M M h ON M h O m O ko O O H N OD N m N 00 O O Ln v kn O LD r-I O� O %D %D %D M Ln 00 m d' M O r-I r-I fn 00 m rl v OD O co co N m O h 00 r-I h 0 0 rl Orl m-1 N 00 h h 0 0� O H h ko In M N rl W r-4d In Lf) 07 LD O 00 O M h O CL Ln N N M d' •d' Ln N c q H Ln nj Cn lyj M M 00 O N m d' h d' d' r1 h m O m W M 'd' O Ln m %%0 M LD Ln Ln LO m M M m m O r-4 O N M O O� In Ln M N N 00 N O h O O co O '-1 d' m N rl 00 LV kD N N M Ln M O rl r-I N M M H O nj M O O O% O m Ln Ln ri r1 00 O 0 0. Ln H m w h �,o Ln %�o O o00 ON Ln Ln N d' O <h N Ln O �D h 00 00 LD LD d' M �O M �O rl OD Z � 4 m 00 O� LP1 M rl M r1 h CO N N N d' M O r-I rl M N M h M m co LD 00 r1 h N Ot O kD M M h 'ch M 00 %*D O h O lD N Ln O h M L; m M Ln rl h Ln 00 00 Nil O m O' O� VI 00 rl N N 'd' rml M ed' M N N N N ONi rNl �h-I N N M rl M M nj M op N O� In to d' M ON Ln h Ln 0� M O 00 Ln Ln N Ln N ON h h M O C) N O O h N 00 00 � Ln M h N 00 M O� O Lo L� 'd' M O� O Ln O d' M O rl r1 O0 O Ln 'd' rl 00 r-I rl N N M N m Q �o! 00 N h�o LD M h �kD N Ln d' M h Q h m M rl: m h O Ln h M d' r-4 Ln rl 00 M 00 N ri r1 rl r-I •ch N r-1 Ln O' %D' N Ln 06 M N m •d' Ln M ON _ M N ...�...yyy N N M d' M N N w c� � b w .d �! N 3 v L a. .p W G Lam, In In LN+ W 41 C�.IL CU '� '� X v 04 2� uirI •v w La N o Z z o a a w 0 D q is d d w 1-4..�� w atA G F m y F w x F z � O ^I O M H Ln 00 m O O O Ln O Q d' m M h h m r1 N 'ch 'd' LO N LD 00 ON m m M M M N ON M M M M M m cr m%D W Ln lD I� 00 Ol O r- N m d' Ln lD h 00 Ol O r- N m r• r• �-- �-- N N N N 242 Risk Management Fund - Overview The purpose of the Rislc 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 Rislc Management Agency (MCMRMA), 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. 244 �� 0 0 0 O O M M O O O O d' O O O O M O i-i n n ca Qn Q r� - 0 i i i �p i � i i �O O �--� �"� O .-i �--� � v v v O LI') V% O [� N O � � d _ � N � � M O lf) ' ' O � � N OJ L!] M � � � � � 0 0 .-i � 0 o rn Q` . � r-'1 N � z _ M � N O 11') � i i i O 00 � � M � � � � � � N i � i M M � Y •• N � � p i p� lf1 ' 'd' M O [� `'i 0 � N pNi '-1 _ �D � b 0 0 0 0 0 0 �� p p p p �-1 O O O p O lf1 N O O O � O e-1 M Q �N O O ' ' ' ' O O O O O O O rn in d' � v � O O O O M M O O O O O O O O O O lf1 Lfl � O N N d' � O Q� d' II') M � O� 00 Q� O l� N N lf'1 W M N N � 0 o m M 0 0 0 0 0 o in N O N N � N N � Q� lA 00 � O d' � m .-� m � o 00 � �-1 r-I N Ln �-1 �"� r-1 N � � O '-1 lf1 N r-1 O M M Q� Q� � O M �O d' d' N N 00 <N N �--1 �-1 00 N N � � N In O� �-1 N � M Q� d' '-1 Q� �O N In V1 l� O � O � W rl c-1 N � n U � ro c "b 3 v � � � u, � � w � �' � cn 'd � .o � a3i � v '+� a w `W" � �°r"+ � �_ cn ,cy � O � C7 O4 CJ � C � � � � � w �" � N N N � Ql � Q j.Li nt h' u � y, W W � � �' U E"' M � N d G N [..� � F N � i�i f�+ G � � N W �. � W � � Ca iO w w �.' � R. P. Q � � p � o � a� b p, a� � c� Q% � � P. � N w w w C � � N � j cNn �l z a� PC .fl a� bA a � w � ti%. � a� .� .� � � 4" � � o � � � � � E� � � o � � � F. W V o 0 0 0 0� to �O 00 d' �D N O h 'c}' In O tf1 N O Q� Q� O� O� O� O� Q N N 00 N 00 O� Q� Q� N In Ln In �O l0 Q� M M M M M M M M � N M 'd' � l0 � M Ol O c- N M 'd' L!1 l0 i� M Ql O N M 'd' � l0 � r— � c- � � .— N N N N N N N N 245 ACV S kl(I I •1 t PFrr `. '.`. Fiscal Year 2021/2022 Annual Budget 247 Employee Flexible Spending Fund - Overview The Employee F1exiUle 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 bracicet of the employee and the extent of utilization, an employee could potentially save several hundred dollars through medical and dependent care flexible spending deductions. R� �3 o a o 0 0 Cn M O 00 M M M O L� O M M M O d M LY M M M M Q O O ' O xk ' O O O O O O O O O O O O O CY v v v v O O O O O O O O O O O O Ln Ln O O O N r� O Cn d' r Ln Ln Ln Ln Ln Ln in Ln o Wo cq Ln in Lr� M d4 v Ln m ON c-i o0 cr� O M M O O M M O O O O O O O O O O Lo Ln O O O N 1� O z �O �,D N l0 ri r-iC) m O \ , h J CDO T-A 00 O O In Ln In 00 00 M 00 N M m 0� r-L r-1 fn Q� Ln Ln lh %lO h Ln h [� N 00 M r� Y Ln Ln Ln v Ln Ln Ln d4 Ln . -i o <r d' rn L\ m d' O O Lo O Ln O _ O O N O b �1 \�I M W O G O W W WQ v°L A w a i A w b w z W v z N 'P.4w W (1) b x z o u a F v j F w w OF rd z a O o Ln rn Q rn rn co ON cn �10 %lo m W N M d' Ln LO I� 00 Ol O N rn �SP.3J Fiscal Year 2021/2022 Annual Budget 250 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 FY20/21 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 Thornton's Fueling Station development project. 251 0 0 0 0 0 0 0 _ a .-i O - Z - � O) 00 M N N N v kO '-1 r-4 rI In N In 00 00 00 M m M m Y M M M M N N N N W 1 00 00 00 i w �I � b � w b � a � w W o m 3 a b a o u W bic z a G, a A W U zEn W oW > j a0i u fx u w H z 0 EV a � a � N h ON ON O� A m �t Ln r� co rn `' N m in tD r� 252 Retained Personnel Fund - Overview Tlle 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. 254 C 0 0 0 o a o C 0 0 0 C) C) C) o CD O C) CD C) 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 C) C) 0 0 0 O C) C) O o 0 0 0 0 0 0 0 0 CD CD C) O o 0 0 O o 0 0 0 O M N M O to 00 N L1') a Ln ,-L Ln ,--i h N ON L\ N O0 In L-1 %0 In c-I \D W N 00 d' N O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O to 00 N M O' L W N In z � In r-I In �i l� O co O OJ lD N rH h d' ON Ln 00 00 Ln to W N V-4 N tD M 00 Ln \0 Ln k0 N 00 N w �0 m Ln w M Ln cr OH W t� � O� � N M (ON �D M M d' L� %D d' _\0 (=> O %D �D M CD M V-i �D O� C) Ln c-� cr Ln O �0 L� d' Lr O �0 h — Ln d' Ln d' rO w �I cd b V) w m W o u N w Ln H A LHz u4 a w w en rx on o o p, W ro w a s a4 a�i c�a z v w o o V w Gn v O Gn NON z •OME( O to O O O O O V-A Q i.J t` h h h N N O� ON M M M Ln Ln %D �D W N M d' Ln l0 r CO Ol O N M d' Ln W r CO Ol N 2SS Fiscal Year 2021/2022 Annual Budget 256 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. 257 O � O O O O O !O� !O) CO r-1 � A A 0 0 0 Ln O Ln v O O O O O O ON O� O� O O O O m O m m m Lo <N d N N N O O O Cl Ln o Ln Ln N O LV N r-1 r-1 V--1 r-1 N O M (Y7 r-1 W44 O M Ln cr O er I Ln %%O M .d. Ln LLOn N N nj e-i h Lb O O 00 L` O Ln Ln M O c-1 ON �--1 r-1 L A W M � � h C W W v o 0 w z u F z ^" o o Ln o N N O�1 W M M M to 258 0 Fiscal Year 2021/2022 Annual Budget 259 Police Pension Puna - 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. Tlie 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. In FY20/21 the City bonded the outstanding Police Pension balance to achieve the self-supporting level and, as such, the financial commitment will be relatively fixed moving forward. 260 O O O\ CO M 00 O O %6D CD LD M O Ln O !OD !O� !O� O OZ M Ln CD CD Co h CDT- 4 H rl O O H CD rl O M to O %0 O 00 O O C) M M O M O Cn M �i O O N h O 'd� O Nt M T-4 O O r1 Ln O M O M In •d' O N h In h d' 00 O '-I h Ln rl 00 O 0 O O O O N N C) O �D O h N N O M O M O O O 0o O D O Ln 00 M Ln M O M M O LO d' h N N h N M N �10 N 00 00 O M M O% Ln O N N 00 M �%D O I Ln 00 M Ln O O M N r1 O` %D N in Ln O N N r1 co N O h LO M h h kD O O `-"I O O 00 h O O �D co O� M h %t N M O Q \D N O M e-1 O LD Ln rl Ln M M M M in kD co N LD Ln d� LO N N N Ln N Lo M M rl N O N M N M M M d' O %D M O O O CD N O o M ko� o o M rl h o o n o h O O rli O� N MLn z _ rl co qct N � Lin Ln co 00 N N N d' ON LO i-II N M Ln rl N rl O LD Ln d' M M M h to M mt N M LO00 r1 O O h N M O O h %D M N h Ln% M h N N Oo N O ON rl Lo h co d^ L� M M ra h rl kD M M N N O Ln N Ln 00 M N O 404 O Ln r-I M 00 N N M in ri N v N N rl N '� 00 M %D h "t r1 O M O M O 0o LO d' O In Ln H"D M 6 kD N M O In ON N r1 M Ln O M M M O h N Ln h h L� O coko M LO �G ON r1 cq r1 O� N rI Ln rl er d M .-A O M O d' �--� O: LO N N Oo rlft N M 1%0 rl N rl O co O %D �1D N d ' M Ln O co Lf) LO 00 %D a% H lD NI M LO M M H 00 mt N �%D O h .44 h Ln M h In O M Ln M LD M M Ln 00 M •d' LO M r± M Nd' L� d' rl' M M N h M M ri M Ln h �1 � 00 'd' v � M d' N rl Ln r1 N N ti W m ; j. Ln G � p a�i {�L� a a w a� G Ln 2A w L G o o q q p w W W c� c� y zy aoi m n Pq Q p iu o P ,y d N 'U A b N w w cu w � Fr ann z u v Q w z O O r1 �D h O� N O CD O O O O Cl M Q rl M M M M M 00 �-A N M d' Q` '-1 '-1 N O N 00 00 w 00 00 N � ON O� ON M r1 d' O% M M M M M M M •d' 'd' d• 'd' d' M a .- N M d' Ln L.D h 00 Oi O �--. sN- M LD ,h- 0D O� N N N N N N N N iu a�i . .o o i. 1%1 Elk . -a 44, 4OR 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. V- I e 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. S. 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. 263 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. 264 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 foil 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 corr•ectthe 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 minas capital and debt service. • Governmental Funds - Ar•e 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 -teem 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 Futtd -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 regtrir•ed 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. 265 ■ 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 fi om 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 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. 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. 266 ■ Special Service Area #4A - The SSA4f4 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 hnprovements 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 utilities. 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 WV1 a 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. 267 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 facilitates 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 fitnd 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) ■ 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 ell ds 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 capifial 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). 269 Fund Balance Paraineters (Bv FundJ • It is the City's philosophy to support long-term financial strategies, where fiscal sustainability 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 fond 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 considered for the funding of one-time, nonrecurring expenditures, assigned for future capital activities or used for the funding of other long-term obligations. 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. 270 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 I ntended 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 (SSA#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. 271 o Water and Sewer Fund -The Water and Sewer Fund cash and investment balance should be maintained at a minimum level of 25%w35% 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 Rislc Management Fund - No target is established for this fimd. Any fund balance accumulated within this fund will be utilized to provide stability 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 fiord 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. z�z o Police Pension Fund - Fund balance targets will be determined through the Police Pension Board and the annual actuarial analysis. 273 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 tl�e capital projects Uudget 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 OUligation 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, 274 Investment Policy I. Policy It is the policy of the City of McHenry to invest public funds iprovide 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 Rislc. 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 Rislc. 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 inshorter-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 concurrentwith cash needs to meet 275 IV. V. 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 A n 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. 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. 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. 276 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. z�� 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., A-1, P-1, 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 301LCS 235/2(h)(1)-(11). 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 XII. XIII. repurchase agreements to ensure that appropriate liquidity is maintained in order to meet ongoing obligations. Maximum Maturities 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. 279 XIVa Performance Standards The investment portfolio will be managed m 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 fi•om 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 the amendments. Any and all amendments to the investment policy shall be provided to the individuals) 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 A. General Rules. Regulations and Ethics Purchasing of goods and services 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 must represent the maximum economic benefit for each dollar spent. Purchases shall be of high quality and continued availability. Purchases shall be based on obtaining cost comparisons, quotations, or competitive bids. 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 purchasing 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 purchases shall be conducted in compliance with the Code of Ethics and Rules of Conduct in the City's Personnel Handbook. The purchasing process shall promote professionalism and be committed to the efficiencies of centralized purchasing. B. expenditure Approval Authority The following table includes the personnel authorized to make purchases and the amount each are authorized to spend on items included in the annual fiscal year budget, as approved by the City Council: Mayor, City Budgeted Designated Supervisors/Managers Department Administrator Amounts Employees* Directors or Finance Director Less than X X X X $750 Less than X $2,500 X X Less than $10,000 X X Less than $201000 X * Designated Employees: • Executive Assistant/Deputy City Clerk • Coordinators and Analysts • 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 282 C. Purchasing Procedure for Budgeted Items The following purchasing procedures apply to budgeted amounts, excluding architectural, surveying or engineering, legal, auditing, information technology or other professional services. o For budgeted items from $20500.00 to $9,999.99, three (3) cost comparisons shall be obtained prior to all purchases. o For budgeted items from $10,000.00 to $19,999.99, three (3) written quotations shall be obtained prior to all purchases. o For budgeted items $20,000.00 and over•, all purchases shall follow a competitive bidding process whereby bid specifications are developed, bids solicited, bids are received and evaluated by staff, and a recommendation is forwarded to the City Council for award/approval. The City Council reserves the right to waive the competitive bidding process upon the vote of 2/3 of the City Council members then holding office. D. Purchasing Procedure for Non -budgeted Amounts For all purchases that are not included in the annual fiscal year budget, a budget amendment request must be approved by the City Council prior to purchase, unless the actions are considered emergency in nature. Once approved, purchases may be made in accordance with the Expenditure Approval Authority set forth above. E. Purchasingi Procedure —Emergencies For all purchases considered emergency in nature by fihe City Administrator or Mayor, such as threats to public health or safety, where immediate repairs to City property are required to protect or prevent against further loss or damage, or where immediate action is needed to prevent or minimize serious disruption to City services, competitive purchasing procedures, as directed by the Mayor or City Administrator under the circumstances, shall be used. The City Council shall be notified of the emergency circumstances and the expenditure amount and the item will be presented for formal approval or ratification at the next regular meeting of the City Council. F. Change Orders Change orders $20,000.00 and over shall be brought before the City Council unless specifically authorized in the bid selection process. However, if a change order for• any public works contract authorizes or necessitates any increase in the contract price that is fifty percent (50%) or more of the original contract price or that authorizes or necessitates any increase in the price of a subcontract under the contract that is fifty percent (50%) or more of the original subcontract price, then the portion of the contract that is covered by the change order must be resubmitted for bidding in the same manner for which the original contract was bid pursuant to the Public Works Contract Change Order Act, 501LCS 525. 283 Glossary of Terms Accrual Basis of AccountinE: 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. Activity: Specific or distinguishable type of work performed by a component of government for the purpose of accomplishing a function for which the government is responsible. Appropriation: Legal authorization by the City Council to malte 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 m 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 Foi• 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. Capital Outlak Fixed assets which have a value of $300 or more and have a use economic lifetime of more than one year. Capital Projects Fund: Fund used fio 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 fimction 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. zss 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 Govermnent 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 cost - reimbursement 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 may be increased, decreased, or remain the same depending upon the needs, alternatives, and available resources. rs�. gv : The total amount of taxes, special assessments, or service charges imposed by a government to support governmental activities. Modified Accrual Basis of Accounting: 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 obligations, which should be recognized when due. Objectives: Specific measurable achievements that an activity seeks fio 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 Safety 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 Worlcs 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. r:► 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 A�encv Funds: Funds used to account for assets held by a governmenttrustee or agent capacity for individuals, private organizations, other governments, and/or other finds.