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HomeMy WebLinkAbout16-17 BudgetCITY OF MCHENRY, ILLINOIS FISCAL YEAR 2016/2017 BUDGET McHe April 2016 Mission Statement: The City of McHenry is dedicated to providing its citizens, businesses, and visitors with the highest quality of programs and services in a customer -oriented, efficient, and fiscally responsible manner. CITY OF MCHENRY FY2016/201 / ANNUAL BUDGET Susan E. Low, Mayor Geri A. Condon, Alderman Scott Curry, Alderman Andrew Glab, Alderman Robert Peterson, Alderman Victor A. Santi, Alderman Jeffrey A. Schaefer, Alderman Richard Wimmer, Alderman Janice C. Dalton, City Clerk Prepared By: Derik Morefield, City Administrator Carolyn Lynch, Finance Director. Bill Hobson, Deputy City Administrator John Jones, Chief of Police Doug Martin, Director of Economic Development Ross Polerecky, Director of Community Development Jon Schmitt, Director of Public Works Ann Campanella, Human Resources Manager Marci Geraghty, Executive Assistant/Deputy City Clerk City of McHenry, Illinois FY2016/2017 Annual Budget Table of Contents Letterof Transmittal................................................................................................. 1 City Overall Organization Chart..................................................................................... 11 GFOA Distinguished Budget Presentation Award for FY15/16 Budget ..................... 12 BudgetDocument Guide................................................................................................. 13 Fund Structure Overview................................................................................................. 14 Basis of Accounting and Budgeting................................................................................ 17 Budget Summary of Revenues and Expenditures......................................................... 18 Summary Table of Total Budget — All Funds ...................................................... 19 Summary Chart of Revenues & Other Financing Sources — All Funds............ 20 Revenue Budget —All Funds................................................................................. 21 Summary Chart of Revenues & Other Financing Sources — General Fund... 24 Revenues by Source — General Fund.................................................................. 25 General Fund — Historical Trend Major Revenue Sources .............................. 26 Summary Chart of Expenditures by Function —All Funds .............................. 28 Summary Chart of Expenditures by Budget Unit —General Fund .................. 29 Summary Chart of Expenditures by Category — General Fund ....................... 30 ExpenseBudget —All Funds................................................................................. 31 Authorized Personnel.......................................................................................... 33 PersonnelExpenses............................................................................................. 34 Schedule of Anticipated Fund Balance............................................................... 35 General Fund Operating Budgets.................................................................................... 36 Administration...................................................................................................... 37 ElectedOfficials...................................................................................................... 43 Community & Economic Development............................................................ 47 Finance.................................................................................................................. 53 PoliceCommission................................................................................................. 58 Police....................................................................................................................... 60 PoliceDispatch....................................................................................................... 66 Public Works Administration............................................................................... 70 Public Works — Street Division............................................................................. 76 Parks& Recreation.............................................................................................. 81 Special Revenue Fund Budgets....................................................................................... 87 Tourism................................................................................................................... 88 Pageant................................................................................................................... 90 Band......................................................................................................................... 92 CivilDefense........................................................................................................... 94 AlarmBoard........................................................................................................... 96 Audit........................................................................................................................ 98 Annexation............................................................................................................. 100 MotorFuel Tax....................................................................................................... 102 Developer Donation.............................................................................................. 105 Tax Increment Finance......................................................................................... 108 Capital Projects & Debt Service Funds........................................................................... 110 Recreation Center Construction Fund................................................................ 111 Special Service Area#4........................................................................................ 116 Capital Improvements Fund................................................................................. 118 Capital Equipment Fund....................................................................................... 121 DebtService Fund................................................................................................. 123 EnterpriseFunds................................................................................................................. 126 PublicWorks — Water.......................................................................................... 127 Public Works — Wastewater................................................................................ 132 Public Works — Utility........................................................................................... 137 CapitalDevelopment........................................................................................... 142 UtilityImprovements........................................................................................... 144 MarinaOperations.............................................................................................. 147 Internal Service Funds....................................................................................................... 149 Employee Insurance............................................................................................. 150 RiskManagement................................................................................................ 152 Information Technology...................................................................................... 155 FiduciaryFunds................................................................................................................... 159 Employee Flexible Spending............................................................................... 160 Development Escrow........................................................................................... 162 Retained Personnel.............................................................................................. 164 RevolvingLoan...................................................................................................... 166 PolicePension....................................................................................................... 168 Supplemental Information............................................................................................... 171 FinancialPolicies.................................................................................................. 172 Fund Balance and Reserve Policy........................................................................ 174 Capital Improvement Program Financial Policies .............................................. 184 InvestmentPolicy................................................................................................. 185 CommunityProfile............................................................................................... 192 Glossary................................................................................................................. 194 CHe r April 25, 2016 RE: Fiscal Year 2016/2017 Budget Transmittal Mayor Low, City Council Members, Citizens of McHenry, The City Administration is pleased to be able to present this Fiscal Year 2016/2017 Annual Budget for the City of McHenry. This document has been developed in conformance with the applicable provisions of the McHenry City Code as well as the generally accepted accounting principles as established by the Governmental Accounting Standards Board (GASB). OVERVIEW/INTRODUCTION The City Administration continues to take a conservative approach in developing the annual budget document. This is especially true in regards to the development of the General Fund Budget which includes potentially volatile, economy -driven revenue sources - such as Sales Taxes and Income Taxes - and expenditures that fund a majority of the City's day-to-day operations (Administration, Police, Human Resources, Parks and Recreation, Public Works Administration and Streets) as well as non -water and sewer related capital projects. Through this approach the City has been able to rebuild the General Fund fund balance from an amount of $2,511,330 at the close of FY09/10 (representing approximately 16.8% of the Actual Operating Expenditures for that fiscal year) to just over $10 million at the close of FY14/15. Moving forward, through the recent establishment of the Fund Balance and Reserve Policy the City can ensure that fund balance targeted minimums can be identified and maintained while utilizing surpluses for the implementation of important capital improvement and capital equipment projects. The following table summarizes General Fund Budgeted vs. Actual Revenues for the last five full fiscal years. The "$ Variance" column represents the unbudgeted revenue surpluses which have been used to rebuild the General Fund fund balance, putting the City in the position that we are now in to be able to identify a target minimum fund balance of 120 days/4 months of operating expenditures as well as to be able to fund important capital projects. 5-YEAR SUMMARY OF GENERAL FUND REVENUES Budgeted Revenues Actual Revenues Variance Variance FY10/11 15,852,895 17,260,823 1,407,928 8.88% FY11/12 17,392,214 19,348,533 1,956,319 11.25% FY12/13 17,666,977 19,059,452 1,392,475 7.88% FY13/14 18,203,901 19,777,150 1,573,249 8.64% FY14/15 18,878,352 20,306,983 1,428,631 7.57% In regards to General Fund Expenditures, budget development guidelines provided to Department Directors have continued to stress the need to keep proposed operating expenditures level where possible and to continue to identify opportunities to reduce expenditures and/or increase revenues and efficiencies in providing services. As part of this process, three years (FY12/13, FY13/14, FY14/15) and ten months (May 1 — February 29, 2016) of actual expenditures were reviewed in making adjustments to line items based on identified need, historical trends, and changes in pricing (for example - reduction in gasoline and utility costs). This analysis, along with a reliance on Department Directors to continually scrutinize spending, has meant that the City has been able to maintain a narrow variance in terms of Budgeted vs. Actual Expenditures in recent years as reflected in the table below: 5-YEAR SUMMARY OF GENERAL FUND EXPENDITURES Budgeted Expenditures Actual Expenditures Variance Variance FY10/11 15,852,696 15,636,890 215,806) 1.36% FY11/12 17,386,496 17,311,563 74,933) 0.43% FY12/13 18,209,740 18,169,423 40,317) 0.22% FY13/14 18,230,585 18,184,842 45,743) 0.25% FY14/15 18,861,743 18,811,253 50,490) 0.27% With this combined approach of conservative revenue estimates and a regular narrow variance to the negative) of budgeted versus actual expenditures the City is well positioned to be able to respond to external financial threats to the municipality — such as reductions the Local Government Distributive Fund revenues by the State of Illinois — while having resources available to address much needed capital project needs. However, a word of caution, while the City is currently in a financial position that allows us to undertake a robust capital improvement program in FY16/17, the City's ability to undertake future improvements must strike a balance between Capital Improvement and Capital Equipment fund balances, budgeted surpluses resulting from limited expenditures and increases in revenues, and any additional unbudgeted surpluses resulting from the impacts of the economy on Sales Taxes and Income Taxes. Importantly, the FY16/17 Budget, as proposed, is operationally BALANCED. The proposed spending plan for All Funds totals $50,045,574 and $22,726,606 for the General Fund. Significantly, these amounts include $3,609,250 for capital improvements to the existing water 2 distribution and wastewater conveyance systems and $4,488,300 in General Fund capital improvement and equipment projects. This totals $8,097,550 in capital projects for all funds in FY16/17. The following is a summary of revenue and expenditure activities for the various funds that comprise the municipal budget. GENERAL FUND The General Fund represents the core revenue and expense fund for municipal functions. General Fund Operating Budgets are comprised of Administration (100.01), Elected Officials 100.02), Community Development (100.03), Finance (100.04), Police Commission (100.21), Police (100.22), Police Dispatch (100.23) - new fund in FY16/17, Public Works Administration 100.30), Public Works Streets Division (100.33), and Parks and Recreation (100.41). Revenues. Budgeted revenues within the General Fund are $20,377,013, an increase of 994,653 (5.1%) from FY15/16. Approximately $16,554,548, or 81.2%, of estimated FY16/17 General Fund Revenues is comprised of Sales Tax receipts, Income Tax receipts, and Property Tax receipts. While the City has seen growth in State and Local Sales Tax receipts in recent fiscal years due to factors related to economic recovery, this trend is beginning to level and, as such, staff will continue to budget revenues from this source conservatively. State Sales Tax receipts, which make up 33.4% of fund revenues, are budgeted at $6,808,038, reflecting an INCREASE of 242,299 (3.7%) from FY15/16. Local (Home Rule) Sales Tax receipts, comprising 9.1% of fund revenues, are budgeted at $1,858,118, reflecting a DECREASE of $33,562 (1.8%) from the current fiscal year. While it may seem contradictory that State Sales Tax receipts are estimated to increase and Local Sales Tax receipts are estimated to decrease, Local Sales Tax receipts dipped from FY13/14 to FY14/15 and the 10 month summary -to -date continues this slight downward trend. One reason for this may be that some goods for which the City receives State Sales Tax receipts for are not included in the Local Sales Tax receipts. A prime example of this is vehicle sales, on which the .5% Local Sales Tax does not apply. So while vehicle sales are increasing, resulting in increases to the State Sales Tax figure, the Local Sales Tax does not realize this same increase. Income Tax receipts, comprising approximately 13.5% of General Fund Revenues, are budgeted at $2,753,184, an increase of $303,184, or 12.4% from the FY15/16 Budget. Again, as alluded earlier, Income Tax receipts are dependent on growth in personal wealth/economic conditions and continue to be threatened by the State of Illinois related to reduced reimbursements through the Local Government Distributive Fund (LGDF). 3 Property Tax receipts, which make up approximately 25.2% of fund revenues, are once again budgeted at $5,135,208, the same as identified in FY15/16. This is the result of the City Council's decision to maintain a "flat" property tax levy for the 5t" consecutive year. The remaining approximately 27.9% of General Fund Revenues are comprised primarily of other Intergovernmental revenues, Franchise Fees, Fines and Forfeitures, Charges for Services, Interest Income, Donations, Reimbursements and other Miscellaneous revenues. Notably, for FY15/16, this includes an estimated $190,000 in additional dispatch service revenues related to dispatch consolidation and the addition of new customers, an estimated $161,800 from the McHenry Township Fire Protection District to offset operational costs for the location of full time fire dispatchers in the McHenry Dispatch Center (per IGA executed in 2015), the anticipated receipt of $141,000 in police seizure funds that will be used to offset a portion of the costs for expanding the consolidated dispatch center, and increased video gaming receipts. Expenditures. Total General Fund Expenditures (without capital expenses) are budgeted at 20,345,147, an INCREASE of $1,670,948 (8.9%) from FY15/16. The most significant budget recommendations that comprise this increase, compared to the FY15/16 Budget, include the following: 1. Administration (100.01) 7,000 for increased Mosquito Abatement 6,000 for the creation of an internship opportunity and participation in the Leadership Greater McHenry County program 2. Community Development (100.03) 80,000 for the Community Development Director position 17,500 for increased mowing contractual services (most of this is recaptured through property liens and/or adjudication) 13,645 for % Office Assistant Position (shared with Finance) 6,400 for a digital camera and color scanner (all information submitted to the Department is now scanned as a digital record and, as such, the scanner provides the full capability to capture color records) 3. Finance (100.04) 130,000 for Development Expense related to sales tax rebate agreements 13,645 for % Office Assistant Position (shared with Community Development) 4. Police (100.22) 136,870 increase for Police Pension 10,419 for Sworn Officer Salary costs (this increase is relatively slight, even with the new Unit I FOP contract, due to the fact that we have gained a number of newer officers that are lower on the pay scale) 4 5. Police Dispatch (100.23) — It should be noted that the identified costs are required for the appropriate staffing to transition to the consolidated dispatch center. Staff has analyzed needs based on the timing/addition of new customers and is recommending a phased approach to the hiring of additional dispatchers with the end result being to have, in place by May 1, 2017, the full complement of dispatchers to be able to serve all existing customers, new customers, and dispatch partners. In FY16/17 most of these up front operational costs will be offset with the expansion of the dispatch customer base new customers). Once the consolidation partnership is formally activated (May 1, 2017) the total expenditures to the City of McHenry for dispatch services will drop to 46% and 54% of these costs will shift to the other partners of the facility. 89,000 for the hiring of a Civilian Supervisor of Dispatch (responsible for the oversight of 20 +/- dispatch personnel 64,112 for the hiring of 2 new full time dispatchers mid budget year (October) in preparation for the transfer of Harvard Police dispatch services to McHenry 77,749 for the hiring of 7 new full time dispatchers in the last quarter of the budget year (January/February 2017) in preparation for the transfer of Woodstock Police and Fire dispatch services to McHenry 6. Public Works Administration (100.30) 90,000 for the hiring of a Project Engineer 50,000 for a drainage study of Lakeland Park drainage 16,000 for the hiring of a part time Office Assistant 182,085 for the implementation of an aggressive tree replacement/planting program — funds for this were provided by the County to the City in FY13/14 as part of the Bull Valley/Charles Miller Road Construction Project and will be included in revenues as a budget transfer from fund balance 7. Public Works Streets Division (100.33) 20,000 for the hiring of four (4) part time season employees to assist the Streets Division in completing more mundane tasks (such as ditch maintenance and restoration) to free up full time employees to more aggressively implement an expanded cracksealing and road maintenance program 8. Parks and Recreation (100.41) 66,625 for costs related to the transition of Recreation employees to the McHenry Recreation Center and, specifically, cost -sharing of personnel who handle both Recreation and Recreation Center functions 20,000 for the transition of winter swim coaches from contractual employees to employees for liability purposes (funding for this is provided through swim programming) 15,000 for the extension of the pool season and expansion of swim lessons funding provided through user fees) 5 9. Information Technology Fund, non -Capital Project (620.00) All funds contribute to the operational costs of the Information Technology Fund. The FY16/17 Information Technology Fund includes $54,000 in technology hardware and software) upgrades - these are identified in the account detail sheets for the IT Fund 10. The remaining amount not accounted for in the previous nine (9) items is mostly attributable to salary and benefit costs (including health insurance, FICA and IMRF) for all employees attributable to the General Fund. With the inclusion of capital expenses (Capital Improvement and Capital Equipment Projects), General Fund Expenses increase by $2,619,544 to $22,726,606, an increase of (13.0%) from the FY15/16 Budget. General Fund Capital Projects total $4,488,300 and will be detailed later in this document. SPECIAL REVENUE FUNDS Special Revenue Funds include the Tourism Fund, Pageant Fund, Band Fund, Civil Defense Fund, Alarm Board Revenue Fund, Audit Fund, Annexation Fund, Motor Fuel Tax Fund, Developer Donation Fund, and the Tax Increment Finance Fund. Overall, Special Revenue Funds revenues are budgeted at $1,553,130 in FY16/17. This reflects an increase of $38,049 or 2.5% from FY15/16. Highlighted here is that revenues within the Tax Increment Finance Fund will continue to remain flat. Expenditures are budgeted at $2,038,680, a decrease of $449,197 or 18.0% from FY15/16. While most of the Special Revenue Funds remain steady, the primary reason for this decrease in expenses is found in the Motor Fuel Tax Fund, where total spending decreases $447,971 due to less funding to cover these projects. Also, within the Developer Donation Fund the following capital expenses are being rebudgeted from FY15/16 - $50,000 for the development of the Miller Park Boat Ramp and $20,000 for ADA Park Improvements. An additional $100,000 is being added as a capital expense for the Miller Park Boat Ramp. CAPITAL PROJECT FUNDS Capital Project Funds include the Recreation Center Construction Fund, Special Service Area #4 Lakewood Road Subdivision sewer project), Capital Improvements Fund, and Capital Equipment Fund. Revenues. Capital Project Funds revenues are derived mainly from interfund transfers. N. Capital Project Fund revenues are budgeted at $3,083,740, an increase of $1,560,468 from the FY15/16 amount of $1,523,272. Budgeted expenses of $5,629,295 are $399,527 lower than the 6,028,822 budgeted in FY15/16. The primary reason for the overall decrease in proposed expenditures is the substantial completion of the Recreation Facility. Capital Improvements and Capital Equipment Program As identified in the 5-year FY16/17 — FY20/21 Capital Improvement Program, the capital improvement and capital equipment projects recommended for funding for FY16/17 are aggressive. Based on the amount of available fund balance in the Capital Improvement Program ($1,233,542), the available fund balance in the Capital Equipment Program ($490,802), the available fund balance over the targeted minimum in the General Fund ($3,641,968), the availability of alternate or supplemental funding sources (Developer Contributions, Park Development Funds, Police seizure funds), and the outstanding capital project needs as identified by Staff and expressed by Council, the following capital improvement and capital equipment projects are being recommended for funding in FY16/17. Capital Improvements Fund ($3,615,500 total - $1,233,542 Capital Improvements Fund fund balance, $87,866 budgeted General Fund surplus, $2,294,592 General Fund fund balance transfer) Local Street Program - 2,000,000 Police Buildout (dispatch and admin) - 900,000* Bull Valley/Curran Road Project - 320,000 Cracksealing - 100,000 Sidewalks - 75,000 Seawall Repair - 75,000 Petersen Park Improvements - 35,000 Parking Lot Improvements - 30,000 Sport Court Renovations - 27,000 ADA Improvements - 20,000 Petersen Farm Improvements - 20,000 Merkel Aquatic Center Improvements - 10,000 141,000 of this will be funded with Police seizure funds which are forthcoming in FY16/17 and will be reimbursed to the General Fund. There is potential for significantly more seizure funds which will also be reimbursed to the General Fund for buildout costs. Finally, the McHenry County ETSB has submitted application for State funding for dispatch consolidation costs. Any funds received through this process will, as they are eligible, also reimburse the General Fund. Capital Equipment Fund ($479,300 total — utilizing the existing Capital Equipment Fund fund balance amount of $490,802) 7 Streets Equipment Replacement - $ 245,000 Police Vehicles - $ 105,800 Parks Vehicle - $ 50,000 Police Vehicle Equipment - $ 43,500 Streets Vehicle Replacement - $ 35,000 In addition, the following projects, which were identified in the 5-Year Capital Improvement Program (CIP), are being recommended for implementation. These projects have dedicated funding sources other than the Capital Improvements Fund, Capital Equipment Fund, or General Fund. Public Works Facility Power Upgrade - $ 270,000 (Developer Cont) Miller Riverfront Park Boat Launch - $ 150,000 (Park Dev Fund) Telephone System Upgrade - $ 74,800 (IT Fund) Detailed project descriptions for all of these projects can be found in the FY16/17 — FY20/21 CIP Document. In addition to these new projects, two Capital Improvement projects — Park Improvements 85,000) and Municipal Building HVAC ($80,000) are being rebudgeted from FY15/16 for implementation in FY16/17. DEBT SERVICE FUND The purpose of the Debt Service Fund is to account for bonded indebtedness incurred by the City's General Fund, including all bond and interest payments. The Debt Service Fund is a non - operating budgetary unit, meaning that it does not provide direct service to the public and is utilized for internal purposes only. Debt service payments are made from this fund and, in turn, transfers from various other funds are made to the Debt Service Fund for debt service payments. In FY16/17 revenues, or transfers, into the Debt Service Fund total $1,653,949 and principal and interest payments are budgeted at $1,653,799. PROPRIETARY FUNDS Proprietary funds include the Water/Sewer Fund, which includes all operating costs related to the conveyance and maintenance of the City's water and sewer systems, Capital Development Fund, Utility Improvements Fund, and the Marina Operations Fund. In 2015 the City Council adopted new water and sewer rates, along with the introduction of base charges for water and sewer maintenance improvements, to ensure adequate funding for F:3 operational and capital improvement costs for the existing water and sewer system. These rates will be reviewed annually by the City Administration to identify and recommend any adjustments to the rate structure. For FY16/17 the total Proprietary Funds revenues, derived primarily through the water and sewer sales within the Water/Sewer Fund, are budgeted at 11,685,516. This is an increase of $4,960,851 from FY15/16. $4,387,186 of this increase is due to internal transfers from the Water/Sewer Fund and Capital Development Fund to the Utility Improvements and Utility Funds to cover expenses. Capital items funded through the Water/Sewer Fund are budgeted through depreciation expenses which allocates the expenditure over the life of the asset. Water and sewer improvement and maintenance projects, totaling $3,609,250, identified for implementation in FY16/17 are as follows: Water Improvements ($103,000) Water Treatment Plant #4 Maintenance $ 58,000 Well Inspection/Maintenance & Repair $ 45,000 Sewer/Wastewater Improvements ($3,216,250) WWTP Consolidation — Fore Main Extension $2,916,250 Sewer Division Motor Pool $ 300,000 Utility Maintenance Improvements ($290,000) Sanitary Sewer Main Rehabilitation Program $ 110,000 Water Main Replacement Program $ 100,000 Sanitary Sewer Manhole Rehabilitation Program $ 50,000 Oakwood Drive Sanitary Sewer Main Rehabilitation $ 30,000 Detailed project descriptions can be found in the FY16/17 — FY20/21 CIP Document. These projects will be funded from the surpluses in the Capital Development and Utility Improvements Funds. Not reflected as part of the Proprietary Funds Budget are revenues and expenditures for the Central Wastewater Treatment Plant (CWWTP) Decommissioning Project. This project is being financed through a State of Illinois State Revolving Fund (SRF) for a period of twenty (20) years with payments being derived from users of the system. INTERNAL SERVICE FUNDS As the name suggests, Internal Service Funds represent employee contribution and/or interfund transfers related to Health Insurance, Risk Management and Information Technology. In FY16/17, Internal Service Fund revenues are budgeted to increase by $245,432 and expenses are budgeted to increase by $310,754. Information Technology costs are increasing M approximately 54,000 due to Microsoft Software and other software licensing, server upgrades, as well as increased spending to replace workstations. The rest of the increases are almost entirely due to increases in health insurance costs and related City and employee contributions. FIDUCIARY FUNDS Fiduciary Funds include the Employee Flexible Spending Fund, Development Escrow Fund, Retained Personnel Fund, Revolving Loan Fund, and the Police Pension Fund. Specific to the Police Pension Fund, municipal contributions are budgeted to increase by $406,870, with expenditures increasing by $42,762. The FY16/17 Annual Budget document is organized and presented as follows: Budget Summary of Revenues and Expenditures General Fund Operating Budgets Special Revenue Fund Budgets Capital Projects Debt Service Funds Proprietary Funds Internal Service Funds Fiduciary Funds Supplemental Information The City Administration hopes that this summary overview, along with the information provided in the following budget document, provides the City Council citizens of McHenry with a clearer understanding of the City of McHenry's budget structure and the confidence in knowing that the City Administration continues to serve as responsible stewards of the public's funds. Respectfully Submitted, Derik Morefield City Administrator Carolyn Lynch Director of Finance 10 CITY OF MCHENRY The Government Officers Finance Association of the United States and Canada (GFOA) presented an Award of Distinguished Budget Presentation to the City of McHenry for its annual budget for Fiscal Year 2015/2016. In order to receive this award, a government unit must publish a budget document that meets program criteria as a policy document, as an operations guide, as a financial plan, and as a communication device. The award is valid for a period of 1 year. We believe that the Fiscal Year2016/2017 Budget continues to conform to program requirements and will be submitted to GFOA for evaluation in 2016. 12 Budget Document Guide This budget document was 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. The City of McHenry is moving toward compliance with many of the Government Finance Officers Association's (GFOA) guidelines for budget presentation and continues its efforts to improve communication and presentations to its citizenry. The guidelines set forth by GFOA will ultimately allow the City to meet both of the objectives previously mentioned. 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 2011/12 through 2014/15 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, that present the budget in a manner that is simple and understandable. The FY16/17 Annual Budget, once adopted, is available for public review at the McHenry Municipal Center, 333 S. Green Street, McHenry, as well as on the City's website at www.ci.mcheM.il.us. l.us. 13 Fund Structure Overview The accounting system and the budget appropriation process are structured according to the basic guidelines established by the Government Finance Officers Association (GFOA) of the United States and Canada. The format includes the basic funds and fund types which follow. The City's governmental funds are as follows: General Fund — 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 and Economic Development, Finance, Police, Public Works Administration, Streets, and Parks and Recreation. Special Revenue Funds — These funds are utilized to account for revenues derived from specific sources which are usually required by law or regulation to be accounted for as separate funds. For the City of McHenry these funds include the 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 — This fund accounts for the accumulation of revenues for and payment of principal and interest on general obligation long term debt. Capital Projects Fund — These funds are utilized to account for financial resources to be used for the acquisition or construction of capital facilities or other major fixed assets. The City's business -type funds include the following: Enterprise Funds — 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 — 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. The City's other funds include the following: Fiduciary Funds — 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, 14 Fund Structure Overview 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 human resources. Community Development — This functions overall mission is to protect and promote the health, welfare, safety and quality of life of McHenry Citizens, property owners, visitors and commercial interests through the development and implementation of the City's adopted ordinances and policies. Planning and development and economic activities are also included within this function. Finance — This function applies modern financial management practices to ensure that the City is able to deliver services effectively and efficiently on a sustained basis. Activities included in this function are reporting financial transactions, billing and collecting money, accounts payable, managing cash and investments, preparing the annual financial report, and developing the budget and financial forecasts. Public Safety — This function provides for services to reduce the amount and effects of external harm to individuals and damage to property, and in general to promote an atmosphere of personal security from external events. 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. 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. Debt Service — This function provides for the accumulation of resources for and the payment of principal and interest on long-term debt of the City. Capital Projects — This function provides for the acquisition or construction of major capital facilities or equipment for the City. 15 Fund Structure Overview 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. 16 Basis of Accounting and Budgeting The City of McHenry uses the modified accrual basis of accounting to budget and account for transactions of the governmental funds. Under this basis of accounting, revenues are recognized when susceptible to accrual (when they are measurable and available) and expenditures are recognized when the fund liability is incurred. For the City's proprietary funds the City uses the accrual basis of accounting. Under this basis, revenues are recorded when earned and expenses are recorded when the liability is incurred. The City prepares the budgets for proprietary funds consistent with this basis except that capital outlay items are included in the budget. The City prepares its budget on a basis consistent with generally accepted accounting principles except that the City also recognizes encumbrances for budgetary purposes. Encumbrances include supplies ordered but not received, and services contracted but not yet expended by the City. Encumbrances are charged against a budget or appropriation for account purposes. Accordingly, expenditures/expenses in this document include encumbered expenditures/expenses. Encumbrances do not lapse at year-end and provide authorization for expenditures/expenses for the following year. The City appropriates funds for capital projects on a fiscal year basis. The Capital Projects section of this document includes descriptive information on each project with estimated costs and financing sources. 17 NEART OF THE FOX RIVERY BUDGET SUMMARY OF REVENUES AND EXPENDITURES Total Budget Summary -All Funds Summary Chart of Revenues & Other Financing Sources - All Funds Revenue Budget - All Funds General Fund Budget Summary Summary Chart of Revenues & Other Financing Sources - General Fund General Fund Historical Trends of Major Revenue Sources Summary Chart of Expenditures By Function - All Funds Summary Chart of Expenditures By Budget Unit - General Fund Summary Chart of Expenditures By Category - General Fund Expense Budget - All Funds Authorized Personnel -All Funds Personnel Expenses -All Funds Schedule of Anticipated Fund Balance - All Funds 18 Total Budget -All Funds FY2016/17 Compared to FY2015/16 Total Revenues 2016/17 Difference Total Revenues 2015/16 General Fund 20,377,013 994,653 19,382,360 Special Revenue Funds 1,553,180 38,099 1,515,081 Capital Project Funds 3,171,606 1,648,334 1,523,272 Debt Service Funds 1,653,949 97,244 1,556,705 Proprietary Funds 11,685,516 4,960,851 6,724,665 Internal Service Funds 4,338,847 245,531 4,093,316 Fiduciary Funds 2,826,294 446,870 2,379,424 Total Revenues 45,606,405 8,431,582 37,174,823 Total Expenses 2016/17 Difference Total Expenses 2015/16 General Fund 22,726,606 2,746,682 19,979,924 Special Revenue Funds 2,020,520 467,357) 2,487,877 Capital Project Funds 5,654,034 958,538) 6,612,572 Debt Service Funds 1,653,799 97,244 1,556,555 Proprietary Funds 11,625,532 3,595,958 8,029,574 Internal Service Funds 4,310,747 310,754 3,999,993 Fiduciary Funds 2,054,336 82,762 1,971,574 Total Expenses 50,045,574 5,407,505 44,638,069 19 Summary of Revenue & Other Financing Sources All Funds 2015/16 2016/17 Dollar Change Change Property Taxes 5,503,481 5,503,481 0.00% Sales Taxes 8,457,419 8,666,156 208,737 2.47% Intergovernmental Revenue 3,382,199 3,724,532 342,333 10.12% Licenses & Fines 948,822 1,194,663 245,841 25.91% Services Charges 6,947,510 9,098,355 2,150,845 30.96% Interest Income 496,350 766,350 270,000 54.40% Bond Proceeds 0.00% Transfers 9,644,205 14,434,614 4,790,409 49.67% Other Financing Sources 1,794,836 2,218,254 423,418 23.59% Total 37,174,822 45,606,405 8,431,583 22.68% 2016/17 Budget Revenues by Source Other Financing Sources 5% Transfers 32% j Bond Proceeds0% Interest Income 4A 2% Services Charges 20% Property Taxes 12% Sales Taxes 19% Intergovernmental Revenue 8% 20 Revenue Budget 2016/17 All Funds Total Net Revenue Transfers Revenue General Fund $20,377,013 $556,590 $19,820,423 Special Revenue Funds Band Fund 15,000 15,000 0 Civil Defense Fund 8,000 8,000 0 Alarm Board Fund 153,000 0 153,000 Audit Fund 38,211 11,785 26,426 Annexation Fund 58,200 0 58,200 Motor Fuel Tax Fund 677,429 0 677,429 Developer Donations 42,540 0 42,540 Developer Donations (Parks) 91,150 0 91,150 TIF Fund 326,000 0 326,000 Pageant Fund 3,600 0 3,600 Tourism Fund 140,050 0 140,050 Total Special Revenue Funds 1,553,180 34,785 1,518,395 Capital Project Funds Recreation Center Construction Fund 502,300 0 502,300 Special Service Area #1A 0 0 0 Special Service Area #4 16,847 0 16,847 Capital Improvements Fund 2,652,459 2,381,459 271,000 Local Streets Improvements 0 0 0 Capital Equipment Fund 0 0 0 Total Capital Project Funds 3,171,606 2,381,459 790,147 Debt Service Funds Debt Service Fund 1,653,949 1,622,680 31,269 Total Debt Service Funds 1,653,949 1,622,680 31,269 Proprietary Funds Public Works - Water 2,693,559 0 2,693,559 Public Works - Wastewater 4,364,424 0 4,364,424 Public Works - Utility 1,470,936 1,470,936 0 Capital Development Fund 172,000 0 172,000 Marina Operations Fund 51,500 0 51,500 Utility Improvements Fund 2,933,097 2,933,097 0 Total Proprietary Funds 11,685,516 4,404,033 7,281,483 Internal Service Funds Risk Management Fund 728,492 698,292 30,200 Information Technology Fund 515,787 515,787 0 Health Insurance Fund 3,094,568 2,696,744 397,824 Total Internal Service Funds 4,338,847 3,910,823 428,024 Fiduciary Funds Medical Flexible Spending Fund 85,000 0 85,000 Revolving Loan Fund 1,550 0 1,550 Police Pension Fund 2,664,244 1,524,244 1,140,000 Development Escrow Fund 500 0 500 McHenry Economic Development Fund 0 0 0 Retained Personnel Fund 75,000 0 75,000 Total Fiduciary Funds 2,826,294 1,524,244 1,302,050 Total All Funds 45,606,405 14,434,614 31,171,791 21 Revenue Budget All Funds Pecent 2015/16 2016/17 Difference Change General Fund 19,382,360 20,377,013 994,653 5.1% Special Revenue Funds Band Fund 15,000 15,000 0 0.0% Civil Defense Fund 5,000 8,000 3,000 60.0% Alarm Board Fund 153,000 153,000 0 0.0% Audit Fund 37,981 38,211 230 0.6% Annexation Fund 58,200 58,200 0 0.0% Motor Fuel Tax Fund 642,610 677,429 34,819 5.4% Developer Donations 42,540 42,540 0 0.0% Developer Donations (Parks) 91,150 91,150 0 0.0% TIF Fund 326,000 326,000 0 0.0% Pageant Fund 3,550 3,600 50 1.4% Tourism Fund 140,050 140,050 0 0.0% Total Special Revenue Funds 1,515,081 1,553,180 38,099 2.5% Capital Project Funds Recreation Center Construction Fund 2,000 502,300 500,300 25015.0% Special Service Area #1A 0 0 0 0.0% Special Service Area #4 16,847 16,847 0 0.0% Capital Improvements Fund 1,261,200 2,652,459 1,391,259 110.3% Local Streets Improvements 0 0 0 0.0% Capital Equipment Fund 243,225 0 243,225) 100.0% Total Capital Project Funds 1,523,272 3,171,606 1,648,334 108.2% Debt Service Funds Debt Service Fund 1,556,705 1,653,949 97,244 6.2% Total Debt Service Funds 1,556,705 1,653,949 97,244 6.2% Proprietary Funds Public Works - Water 2,295,485 2,693,559 398,074 17.3% Public Works - Wastewater 3,142,848 4,364,424 1,221,576 38.9% Public Works - Uility 1,045,985 1,470,936 424,951 0.0% Capital Development Fund 172,000 172,000 0 0.0% Marina Operations Fund 51,500 51,500 0 0.0% Utility Improvements Fund 16,847 2,933,097 2,916,250 17310.2% Total Proprietary Funds 6,724,665 11,685,516 4,960,851 73.8% Internal Service Funds Risk Management Fund 778,000 728,492 49,508) 6.4% Information Technology Fund 461,101 515,787 54,686 11.9% Health Insurance Fund 2,854,215 3,094,568 240,353 0.0% Total Internal Service Funds 4,093,316 4,338,847 245,531 6.0% Fiduciary Funds Employee Flexible Spending Fund 80,000 85,000 5,000 6.3% Revolving Loan Fund 1,550 1,550 0 0.0% Police Pension Fund 2,257,374 2,664,244 406,870 18.0% Development Escrow Fund 500 500 0 0.0% Retained Personnel Fund 40,000 75,000 35,000 87.5% Total Fiduciary Funds 2,379,424 2,826,294 446,870 18.8% Total All Funds 37,174,823 45,606,405 8,431,582 22.7% 22 FY16-17 General Fund Budget FY16-17 Budget FY15-16 FY15-16 Budget Change Budget 8 month Actual GF Property Tax Levy 5,135,208 5,135,208 5,139,820 Total Property Tax Levy 5,135,208 5,135,208 5,139,820 Intergovernmental 3120 Sales Tax 6,808,038 242,299 6,565,739 4,551,120 3121 Home Rule Sales Tax 1 1,858,118 33,562)1 1,891,680 1,255,156 3130 State Income Tax 2,753,184 303,184 1 2,450,000 2,000,490 3110 State Replacement Tax 65,000 65,000 44,492 3140 State Pull Tabs 1,000 1,400) 2,400 3141 Inter Track Wagering 62,000 62,000 43,725 3125 State Telecommunications 135,000 10,000 125,000 97,123 3180 1 State Grants 5,193 Total intergovernmental 11,682,340 520,521 11,161,819 7,997,299 Franchise Fees 38321 Franchise Fees 303,000 5,000 298,000 234,662 Total Franchise Fees 303,000 5,000 298,000 234,662 Licenses and Permits 3310 Licenses -Liquor 65,500 65,500 6,488 3320 Licenses - City 8,500 2,000) 10,500 3,679 3330 Licenses -Vehicle 150,000 10,000) 160,000 149,217 3350 Licenses - Video Gambling 245,000 95,000 150,000 147,551 3410 Building Permits 91,163 4,341 86,822 146,125 3532 Overweight Truck Permits 2,500 2,500 2,020 Total Licenses and Permits 562,663 89,841 472,822 455,080 Finesand Forfeitures 3505 Traffic Fines 290,000 8,000 282,000 209,120 3510 Parking Fines 40,000 40,000 27,570 3525 Drug Asset Forfeitures 161,000 141,000 20,000 4,663 3530 DUI Fines 7,000 7,000 5,390 3535 Police -Application Fees 3538 Warrant Execution 2,000 11000 1,000 1,870 3539 Electronic Citation 2,000 2,000 11580 3540 Vehicle License Fines 4,000 4,000 6,585 3545 Vehicle Fund Fines 15,000 15,000 9,268 Total Fines and Forfeitures 521,000 150,000 371,000 266,046 Charges for Services 3420 Plumbing Inspection 7,000 11000 6,000 7,660 3430 Zoning/Plat Fees 10,000 3,000 7,000 7,550 3682 Mowing/Weeds 30,000 24,800 5,200 24,113 3515 Police Accident Reports 3,000 3,000 1,655 3520 Police Field Reports 200 200 355 3536 Bail Bond Processing 4,500 4,500 3,075 3683 Alarm Board Revenues 1,000 1,000 600 3835 Garbage Bags 42,000 3,000) 45,000 31,836 3845 Rental Income 15,596 23,657) 39,253 30,277 3969 Transfer -TIF 2,500 2,500 1,667 3970 Charges for Services 479,090 7,080 472,010 314,673 3999 Transfer from other funds 75,000 80,000) 155,000 50,000 3631 Park and Rec Programs 350,000 350,000 282,278 3632 Concessions 32,000 2,000 30,000 32,265 3633 Beach Programs 3,200 3,200 3,678 3634 Swimming Pool 100,000 15,000) 115,000 95,854 3711 Meeting Fees - P&Z 2,000 2,000 1,145 Total Charges for Services 1,157,086 81,777) 1,238,863 888,681 Interest 3200 Interest 2,000 2,000 4,413 Totallnterest 2,000 2,000 4,413 Donations 3815 Donations 14,853 14,853 12,750 Total Donations 14,853 14,853 12,750 Reimbursements 3881 Reimb - Comm Desk Salaries 602,068 311,068 291,000 379,091 3882 Reimb -Misc 208,795 10,000 198,795 148,643 3883 Reimb- Officers Training 414 3537 Reimb - Police Impound 115,000 10,000) 125,000 90,150 Total Reimbursements 925,863 311,068 614,795 618,298 Miscellaneous 3920 Fixed Asset Sale 10,000 10,000 Miscellaneous Income 63,000 63,000 44,248 Total Miscellaneous 73,000 73,000 44,248 2 7,013 994,653 19,382,360 15,661,297 Summary of Revenues & Other Financing Sources General Fund Actual Actual Budget Budget Dollar Percent 2013/14 2014/15 2015/16 2016/17 Change Change Revenues Property Taxes 5,124,611 5,134,224 5,135,208 5,135,208 0.00% Intergovernmental 11,678,714 11,969,896 11,161,819 11,682,340 520,521 4.66% Other Local Sources 2,308,843 2,404,903 2,382,685 2,545,749 163,064 6.84% Miscellaneous 664,987 797,960 702,648 1,013,716 311,068 44.27% Total Revenues 19,777,155 20,306,983 19,382,360 20,377,013 994,653 5.13% Miscellaneous 5% Other Local 2016/17 Budget General Fund Revenues by Source Sources 13% 4,11 Intergovernment 57% Property Taxes hi 25% 24 Revenue by Source General Fund 16/17-15/16 2011/12 2012/13 2013/14 2014/15 2015/16 2016/17 Budget Actual Actual Actual Actual Budget Budget Change Total Property Taxes 5,154,234 5,131,967 5,124,611 5,134,224 5,135,208 5.135,208 Intergovernmental Sales Tax 6.498,608 6,276,057 6,684,864 6,965,782 6,565,739 6,808,038 242,299 Local Sales Tax 1,945,024 1,889,994 1,984,108 1,965.987 1,891,680 1,858,118 33,562) State Income Tax 2,286,926 2,553,914 2.577,574 2,719,568 2,450,000 2,753,184 303,184 State Replacement Tax 65,089 63,090 74,513 70,909 65,000 65,000 State Pull Tabs 1,724 1,313 1,729 995 2,400 1,000 1,400) Inter Track Wagering 90,434 82,759 65,150 64,814 62,000 62,000 State Telecommunications 195,439 172,143 163,424 133,945 125,000 135,000 10,000 State Grants 90,972 48,351 127,352 47,896 Total 11,174,216 11,087,621 11,678,714 11,969,896 11,161,819 11,682,340 520,521 Other Local Sources Franchise Fees 219,719 297,253 295,166 306,122 298,000 303,000 5,000 Licenses and Permits 331,235 344,664 439,510 535,033 472,822 562,663 89,841 Fines and Forfeitures 463,916 407,230 405,023 383,932 368,000 521,000 153,000 Charges and Services 1,244,251 1,207,260 1,166,945 1,177,601 1,241,863 1,157,086 84,777) Interest Income 3,493 8,199 2,199 2,215 2,000 2,000 Total 2,262,614 2,264,606 2,308,843 2,404,903 2,382,685 2,545,749 163,064 Miscellaneous Donations 19,555 14,823 17,772 22,402 14,853 14,853 Reimbursements 569,760 429,995 532,910 557,855 614,795 925,863 311.068 Other Miscellaneous 168,153 130,439 114,305 217,703 73,000 73,000 Total 757,468 575,257 664,987 797,960 702,648 1,013,716 311,068 Total General Fund Revenues 19,348,532 19,059,451 19,777,155 20,306,983 19,382,360 20,377,013 994,653 25 Historical Trend Major Revenue Sources General Fund Property Tax Revenue 5,145,000 5,140,000 5,135,000 0 5,130,000 0 5,125,000 5,120,000 iF 5,115,000 2012/13 Actual 2013/14 Actual 2014/15 Actual 2015/16 Actual 2015/16 Budget Sellesl 1 5,131,967 5,124,611 5,134,224 5,139,820 5,135,208 State Sales Tax Revenue 7,000,000 6,800,000 6,600,000 c $6,400,000 c 6,200,000 6,000,000 5,800,000 2010/11 Actual 2011/12 Actual 2012/13 Actual 2013/14Actual 2014/15 Actual 2015/16 Budget 2016/17 Budget Sen.1 6,369,715 6,473,004 6,276,057 6,684,864 6,965,782 6,565,739 6,008,038 26 Historical Trend Major Revenue Sources General Fund Income Tax Revenue 3,000,000 2,500,000 2,000,000 c0 1,500,000 1,000,000 500,000 0 2010/11 Actual 2011/12 Actual 2012/13 Actual 2013/14 Actual 2014/15 Actual 2015/16 Budget 2016/17 Budget Se ®riesl 2,130,030 2,286,926 2,553,914 2,577,574 2,719,568 2,450,000 2,753,184 27 Expense Budget 2016/17 All Funds Dollar Percent 2014/15 2015/16 2016/17 Change Change General Government 2,613,758 2,671,601 2,885,346 213,745 8.00% Public Safety 10,394,100 10,878,779 11,720,746 841,967 7.74% Public Works 10,125,009 10,524,971 10,910,981 386,010 3.67% Culture and Recreation 2,341,139 2,390,632 2,314,459 76,173) 3.19% Capital Projects 3,313,883 6,515,725 5,504,831 1,010,894) 15.51% Comm. & Econ. Dev. 733,772 741,793 996,900 255,107 34.39% Debt Service 1,558,350 1,556,555 1,653,799 97,244 6.25% Other 3,287,847 3,598,808 3,859,574 260,766 7.25% Total 34,367,858 38,878,864 39,846,636 967,772 2.49% Other 2016/17 Budget 1o%----- Expenditures by Function* Debt Service 4% Comm. & Econ. Dev. 3% Capital Projects 14% IiK Culture and Recreation 6% Public Works 27% Note: Total does not include interfund transfers General Government 7% I Public Safety 29% 28 Expenditures by Budget Unit General Fund Actual Actual Budget Budget Dollar Percent 2013/14 2014/15 2015/16 2016/17 Change Change Administration 1,591,027 1,307,914 1,408,587 1,435,293 26,706 1.90% Elected Officials 142,658 144,816 171,868 100,516 71,352) 41.52% Comm & Econ Dev. 582,468 620,496 631,102 858,220 227,118 35.99% Finance 2,100,660 2,480,387 2,849,272 4,110,503 1,261,231 44.27% Police Commission 7,333 7,382 6,453 6,953 500 7.75% Police 8,773,762 8,986,706 9,457,631 8,584,241 873,390) 9.23% Dispatch 1,737,067 1,737,067 0.00% Public Works -Admin 253,169 253,295 271,713 837,688 565,975 208.30% Public Works - Streets 2,962,286 2,892,864 2,862,655 2,844,009 18,646) 0.65% Parks & Recreation 1,771,480 2,117,393 2,320,643 2,212,116 108,527) 4.68% 18,184,843 18,811,253 19,979,924 22,726,606 2,746,682 13.75% 2016/17 Budget Parks & General Fund Recreationlea Expenditures by Budget Unit Administration Elected Officials Public Works - 6% 0% Streets Comm &Econ Dev. 12% 4% Public Works - Admin Finance 4% 18% Dispatch 8% Police Commission 0% Police 38 % 29 Expenditures by Category General Fund Actual Actual Budget Budget Dollar Percent 2013/14 2014/15 2015/16 2016/17 Change Change Personnel 12,826,464 12,826,464 13,891,360 15,132,083 1,240,723 8.93% Contractual 1,657,086 1,657,086 1,814,800 1,900,617 85,817 4.73% Supplies 821,011 821,011 815,745 809,320 6,425) 0.79% Other 1,983,368 1,983,368 2,723,819 4,135,192 1,411,373 51.82% Debt Service 719,451 719,451 729,960 729,319 641) 0.09% Capital 177,462 177,462 4,240 20,075 15,835 373.47% Total 18,184,842 18,184,842 19,979,924 22,726,606 2,746,682 13.75% 2016/17 Budget General Fund Debt Service Expenditures by Category 3% Other- 1 R° Supplies 4% Contractual 8% Personnel 67% Capital 0% 30 Expense Budget 2016/17 All Funds Total Total Expenditures Expenditures Percentage 2015/16 2016/17 Difference Change General Fund Administration 1,408,587 1,435,293 26,706 1.90% Elected Offices 171,868 100,516 71,352) 41.52% Community & Economic Development 631,102 858,220 227,118 35.99% Finance Department 2,849,272 4,110,503 1,261,231 44.27% Police Commission 6,453 6,953 500 7.75% Police Department 9,457,631 8,584,241 873,390) 9.23% Dispatch Department 0 1,737,067 1,737,067 0.00% Public Works - Administration 271,713 837,688 565,975 208.30% Public Works - Streets 2,862,655 2,844,009 18,646) 0.65% Parks and Recreation 2,320,643 2,212,116 108,527) 4.68% Total General Fund 19,979,924 22,726,606 2,746,682 13.75% Special Revenue Funds Band Fund 15,000 15,000 0 0.00% Civil Defense Fund 3,200 5,300 2,100 65.63% Alarm Board Fund 60,000 27,950 32,050) 53.42% Audit Fund 36,380 37,104 724 1.99% Annexation Fund 45,000 45,000 0 0.00% Motor Fuel Tax Fund 1,706,912 1,258,941 447,971) 26.24% Developer Donations 42,540 42,540 0 0.00% Developer Donations (Parks) 156,200 184,200 28,000 17.93% TIF Fund 324,095 305,935 18,160) 5.60% Pageant Fund 3,550 3,550 0 0.00% Tourism Fund 95,000 95,000 0 0.00% Total Special Revenue Funds 2,487,877 2,020,520 467,357) 18.79% Capital Project Funds Recreation Center Construction Fund 4,880,000 947,407 3,932,593) 0.00% Special Service Area #1A 0 0 0 0.00% Special Service Area #4A 16,847 16,847 0 0.00% Capital Improvements Fund 1,452,500 4,210,480 2,757,980 0.00% Local Street Improvements Fund 0 0 0 Capital Equipment Fund 263,225 479,300 216,075 0.00% Total Capital Project Funds 6,612,572 5,654,034 958,538) 14.50% Debt Service Funds Debt Service Fund 1,556,555 1,653,799 97,244 6.25% Total Debt Service Funds 1,556,555 1,653,799 97,244 6.25% Proprietary Funds Public Works - Water 2,691,104 2,976,706 285,602 10.61% Public Works - Wastewater 4,246,485 6,222,280 1,975,795 46.53% Public Works - Utility 1,045,985 1,184,636 138,651 0.00% Capital Development Fund 0 1,195,910 1,195,910 0,00% Marina Operations Fund 46,000 46,000 0 0.00% Utility Improvements Fund 0 0 0 0.00% Total Proprietary Funds 8,029,574 11,625,532 3,595,958 44.78% Internal Service Funds Risk Management Fund 689,206 702,636 13,430 1.95% Information Technology Fund 461,100 515,787 54,687 11.86% Health Insurance Fund 2,849,687 3,092,324 242,637 8.51% Total Internal Service Funds 3,999,993 4,310,747 310,754 7.77% Fiduciary Funds Employee Medical Flexible Spending Fund 80,000 85,000 5,000 6.25% Revolving Loan Fund 0 0 0 0.00% Police Pension Fund 1,851,574 1,894,336 42,762 2.31% Development Escrow Fund 0 0 0 0.00% Retained Personnel Fund 40,000 75,000 35,000 87.50% Fiduciary Funds 1,971,574 2,054,336 82,762 4.20% Total All Funds S4453-8 069 50.045,574 5.407.505 12.11% 31 Expense Budget 2016/17 All Funds Total Net Budget Transfers Budget General Fund Administration 1,435,293 85,995 1,349,298 Elected Offices 100,516 5,843 94,673 Community & Economic Development 858,220 70,860 787,360 Finance Department 4,110,503 3,214,611 895,892 Police Commission 6,953 0 6,953 Police Department 8,584,241 396,754 8,187,487 Dispatch Department 1,737,067 134,777 1,602,290 Public Works - Administration 837,688 27,514 810,174 Public Works - Streets 2,844,009 102,715 2,741,294 Parks and Recreation 2,212,116 120,407 2,091,709 Total General Fund 22,726,606 4,159,476 18,567,130 Special Revenue Funds Band Fund 15,000 0 15,000 Civil Defense Fund 5,300 0 5,300 Alarm Board Fund 27,950 0 27,950 Audit Fund 37,104 0 37,104 Annexation Fund 45,000 35,000 10,000 Motor Fuel Tax Fund 1,258,941 398,641 860,300 Developer Donations 42,540 0 42,540 Developer Donations (Parks) 184,200 0 184,200 TIF Fund 305,935 223,935 82,000 Pageant Fund 3,550 0 3,550 Tourism Fund 95,000 75,000 20,000 Total Special Revenue Funds 2,020,520 732,576 1,287,944 Capital Project Funds Recreation Center Construction Fund 947,407 132,356 815,051 Special Service Area #1A 0 0 0 Special Service Area #4 16,847 16,847 0 Capital Improvements Fund 4,210,480 0 4,210,480 Local Streets Improvements 0 0 0 Capital Equipment 479,300 0 479,300 Total Capital Project Funds 5,654,034 149,203 5,504,831 Debt Service Funds Debt Service Fund 1,653,799 0 1,653,799 Total Debt Service Funds 1,653,799 0 1,653,799 Proprietary Funds Public Works - Water 2,976,706 1,257,433 1,719,273 Public Works - Wastewater 6,222,280 2,672,976 3,549,304 Public Works - Utility 1,184,636 0 1,184,636 Capital Development Fund 1,195,910 1,195,910 0 Marina Operations Fund 46,000 0 46,000 Utility Improvements Fund 0 0 0 Total Proprietary Funds 11,625,532 5,126,319 6,499,213 Internal Service Funds Risk Management Fund 702,636 20,386 682,250 Information Technology Fund 515,787 7,408 508,379 Health Insurance Fund 3,092,324 0 3,092,324 Total Internal Service Funds 4,310,747 7,408 4,282,953 Fiduciary Funds Employee Flexible Spending Fund 85,000 0 85,000 Revolving Loan Fund 0 0 0 Police Pension Fund 1,894,336 3,570 1,890,766 Development Escrow Fund 0 0 0 Retained Personnel Fund 75,000 0 75,000 Fiduciary Funds 2,054,336 3,570 2,050,766 Total All Funds 50,045,574 10,178,552 39,846,636 32 Authorized Personnel General Fund Administration Elected Offices Community Development Finance Department Police Department Dispatch Department Public Works - Administration Public Works - Streets Parks and Recreation Total General Fund Recreation Center Fund Info Technology Fund Water/Sewer Fund Water Division Wastewater Division Utility Division Total Water/Sewer Fund Total City of McHenry All Funds 2016/17 Change from Budget Prior Year 2015/16 2014/15 2013/14 2012/13 2011/12 2010/11 2009/10 2008/09 2007/08 6.00 0.00 6.00 6.00 8.00 8.00 8.00 8.00 8.00 9.00 13.00 0.00 1.00) 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1,00 7.90 2.40 5.50 5.50 5.50 6.50 6.50 6.50 6.50 8.50 7.50 5.00 0.40 4.60 4.60 4.60 4.60 4.35 5.85 6.45 6.95 6.95 52.75 9.13) 61.88 60.88 60.88 60.88 60.60 60.00 63,00 66.00 68.00 12.25 12.25 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 4.50 2.50 2.00 2.00 2.00 2.00 2,00 2.00 1.00 3.00 2.00 18.00 0.00 18.00 19.00 18.00 18.00 18.00 18.00 19.00 19.00 21.00 11.00 2.00) 13.00 12.00 10.00 11.00 11.00 11.00 12.60 13.10 13.10 117.40 5.42 111.98 110.98 109.98 111.98 111.45 112.35 117.55 126.55 132.55 1.00 1.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 2.00 0.00 2,00 2.00 2.00 2.00 2.00 2.00 2.00 2.00 1.00 5.50 4.00) 4.50 9.50 9.50 9.50 10.50 10.50 10.50 10.50 10.50 7.00 3.00) 7.00 10.00 9.00 10.00 10.00 10.00 10.00 10.00 10.00 9.00 9.00 8.00 21.50 2.00 19.50 19.50 18.50 19.50 20.50 20.50 20.50 20.50 20.50 141.90 7.42 133.48 132.48 130A8 133.48 133.95 134.85 140.05 149.05 154.05 Population 26,992 26,992 26,992 26,992 26,992 26,992 27,525 25,491 25,491 25,236 Employees per 1,000 Population 5.26 4.95 4.91 4.83 4.95 4.96 4.90 5.49 5.85 6.10 33 Personnel Expenses All Funds Budget Budget Percent 2015/16 2015/16 Change Change General Fund Administration 761,213 790,198 28,985 3.8% Elected Officials 116,881 58,023 58,858) 50.4% Comm. & Econ Dev. 526,096 720,498 194,402 37.0% Finance 386,417 414,937 28,520 7.4% Police Commission 1,453 1,453 0 0.0% Police Department 8,472,387 7,719,927 752,460) 8.9% Dispatch Department 0 1,540,058 1,540,058 0.0% Public Works - Administration 234,735 520,409 285,674 121.7% Public Works - Street 1,928,129 1,947,604 19,475 1.0% Parks & Recreation 1,464,049 1,418,976 45,073) 3.1% Total General Fund 13,891,360 15,132,083 1,240,723 8.9% Recreation Center Fund 0 266,651 266,651 0.0% Water/Sewer Fund Water 534,258 642,065 107,807 20.2% Wastewater 799,981 817,981 18,000 2.3% Utility 839,935 979,886 139,951 0.0% Total Water/Sewer Fund 2,174,174 2,439,932 265,758 12.2% IT Fund 212,549 201,830 10,719) 5.0% Total Personnel Expenses 16,278,083 18,040,496 1,762,413 10.8% 34 Schedule of Anticipated Fund Balance All Funds Ending Beginning Excess Balance Fund Balance 5/1/16 Revenues Appropriations Deficit) 4/30/17 General Fund 10,672,327 20,377,013 22,726,606 2,349,593) 8,322,734 Special Revenue Funds Band Fund 16,842 15,000 15,000 16,842 Civil Defense Fund 2,804) 8,000 5,300 2,700 104) Alarm Board Fund 292,105 153,000 27,950 125,050 417,155 Audit Fund 20,183 38,211 37,104 1,107 21,290 Annexation Fund 316,212 58,200 45,000 13,200 329,412 Motor Fuel Tax Fund 653,429 677,429 1,258,941 581,512) 71,917 Developer Donations 881,264 133,690 226,740 93,050) 788,214 TIF Fund 403,338) 326,000 305,935 20,065 383,273) Pageant Fund 1,998) 3,600 3,550 50 1,948) Tourism Fund 324,879 140,050 95,000 45,050 369,929 Capital Project Funds Recreation Center Construction Fund 1,295,107 502,300 947,407 445,107) 850,000 Special Service Area #1A Special Service Area #4 27 16,847 16,847 27 Special Service Area #6 179,115) 179,115) Capital Improvements Fund 1,770,497 2,620,593 4,210,480 1,589,887) 180,610 Local Street Improvements Fund Capital Equipment Fund 490,802 479,300 479,300) 11,502 Debt Service Funds Debt Service Fund 378,143 1,653,949 1,653,799 150 378,293 Proprietary Funds Public Works - Water/Wastewater/Utility 39,404,735 8,528,919 10,383,622 1,854,703) 37,550,032 Capital Development Fund 1,444,324 172,000 1,195,910 1,023,910) 420,414 Marina Operations Fund 439,128 51,500 46,000 5,500 444,628 Utility Improvements Fund 3,948,015 16,847 16,847 3,964,862 Internal Service Funds Risk Management Fund 747,365 728,492 702,636 25,856 773,221 Information Technology Fund 220,593 515,787 515,787 220,593 Employee Insurance Fund 18,182 3,094,568 3,092,324 2,244 20,426 Fiduciary Funds Employee Medical Flexible Spending Fund 85,000 85,000 Revolving Loan Fund 116,129 1,550 1,550 117,679 Police Pension Fund 21,590,936 2,664,244 1,894,336 769,908 22,360,844 Development Escrow Fund 500 500 500 Retained Personnel Fund 75,000 75,000 Eliminations & Adjustments 84,453,970 42,658,289 50,045,574 7,387,285) 77,066,685 35 HEART OF THE FOX RIVERY GENERAL FUND OPERATING BUDGETS Administration (100.01) Elected Officials (100.02) Community Development (100.03) Finance (100.04) Police Commission (100.21) Police (100.22) Police Dispatch (100.23) Public Works Administration (100.30) Public Works - Streets Division (100.33) Parks & Recreation (100.41) 36 FY16-17 General Fund Budget FY16-17 Budget FY15-16 FY15-16 Budget Change Budget 8 month Actual Total General Fund Revenues 20,377,013 994,653 19,382,360 15,661,297 General Administration 4010 Salaries 551,498 17,075 534,423 359,551 4050 Overtime 1,000 500 500 1,045 4110 Salaries -Seasonal 4190 Salary Adjustment 13,683 858 12,825 4220 Boards & Commission Expense 8,740 8,740 5,383 4310 Health/Vision 90,094 6,786 83,308 60,912 4320 Dental Insurance 4,102 101) 4,203 2,342 4330 Life Insurance 414 414 297 4340 Insurance Premiums Vision 222 31) 253 175 4410 FICA Medicare 43,561 1,410 42,151 24,159 4420 IMRF Retirement 76,434 2,488 73,946 46,494 4510 Uniform Allowance 450 450 Total Personnel 790,198 28,985 761,213 500,358 5110 Contractual Services 186,800 15,300 171,500 140,149 5230 Legal Fees Corporate 250,000 250,000 176,061 5310 Postage & Meter 2,500 500 2,000 2,850 5320 Telephone 10,000 1,000) 11,000 5,898 5330 Printing & Publishing 2,500 500) 3,000 1,614 5370 Repair & Maintenance 750 250 500 165 5410 Dues 15,300 500) 15,800 16,688 5420 Travel Expenses 3,000 200 2,800 3,589 5430 Training 5,900 3,000 2,900 2,737 5440 Tuition Reimbursements 5450 Publications 400 400 207 5510 Utilities 4,500 1,000 3,500 861 5970 IMF Expense Total Contractual 481,650 18,250 463,400 350,819 6110 Materials and Supplies 61,450 3,750) 65,200 40,643 6210 Office Supplies 1,200 300) 1,500 881 6250 Gasoline & Fuel 500 500 6270 Small Equipment 500 500 Total Supplies 63,650 4,050) 67,700 41,524 6940 Administrative Expense 13,800 1,000) 14,800 7,737 9920 Purch Sery - Risk Mgt 52,732 18,875) 71,607 47,738 9922 Purch Sery - Info Tech 33,263 3,396 29,867 19,911 9942 Transfer -Cap Imp Fund Total Other 99,795 16,479) 116,274 75,386 8100 Capital - Land Acquisition 8200 Capital - Bldg Improvments 8300 Capital - Equipment 8700 Capital - Furniture Total Capital Total Administration Department 1,435,293 26,706 1,408,587 968,087 37 Administration Office Mission Statement It is the mission of the Administration Office to provide general administrative services for the City and coordinate, supervise, and direct the affairs of all departments. In addition, the Administrative Office serves as the primary point of communication with the City Council, established Council committees, and the general public. Primary Functions --> There are three primary operating functions within the Administration Office. City Administrator's Office: Has primary responsibility for the day to day operation of the City and all departments. The Administrator's Office prepares all agendas and provides information to the City Council and various committees for review prior to decision making. The Administrator's Office is also directly responsible for the City's human resources function, which includes risk management. Facilities and Business District Maintenance: Responsible for the information technology and maintenance of City buildings, the downtown business districts, and the Riverwalk. Development Services: Oversight of Public Works and Community Development departments in reviewing and managing development and redevelopment projects. 2015/16 Accomplishments Development of annual 5-Year Capital Improvement Program and balanced annual budget. Development of Fund Balance and Reserve Policy for implementation by the City Council. Coordinated with Finance Director to achieve GFOA "Distinguished Budget Award" recognition. Coordinated with Finance Director to implement Quarterly Budget Report on City Council Agendas. Led the review and recommendation for the adoption of new water and sewer rates, including capital base fees. Completed intensive 10-month Leadership Greater McHenry County program. Coordinated with Human Resources Manager to hire Community Development Director. Coordinated with Public Works Director, Economic Development Director, City Attorney, and various other municipal staff members to evaluate and recommend changes to the City's engineering functions which will include the hiring of a staff Project Manager/Project Engineer and revising the relationship with the appointed City Engineer. Coordinated with Police Department and led discussions with other municipalities/jurisdictions to facilitate the selection of McHenry as a consolidated dispatch center. Worked with Director of Public Works, City Attorney and City Engineer to develop, recommend, and receive Council approval for the decommissioning of the Central Wastewater Treatment Plant through the acquisition of a $33.5 million State Revolving Loan. 38 Administration Office Worked with Deputy City Administrator/Parks and Recreation Director to facilitate the construction of a new $4.5 million, 18,200 square foot recreation facility. Negotiated new, 3-year, bargaining unit contract with the Fraternal Order of Police/Unit I Patrol). 2016/17 Goals and Objectives Negotiate new contract with IOUE 150 (Public Works/Parks Maintenance Workers). Coordinate with Director of Public Works and Human Resources Manager to recruit and hire Project Manager/Project Engineer. Work with Director of Public Works to develop a new master agreement with City Engineering firm based on direction provided by Council. Coordinate with Director of Public Works to pre -quality engineering firms for selective bidding on public improvement projects. Work with Police Chief and Deputy City Administrator to facilitate build out of relocated Police Administration and Dispatch functions. Complete agreement for transfer of boat ramp rights from the Village of Lakemoor and coordinate with Deputy City Administrator to implement process for construction of new ramp at Miller Riverfront Park. Coordinate with Director of Finance for submittal of FY16/17 Budget to GFOA to achieve Distinguished Budget Award" 39 Administration Office Budget Summary ADMINISTRATION OFFICE BUDGET SUMMARY 8 MONTH 2014115 2015116 2015/16 2016/17 INCREASE ACTUAL BUDGET ACTUAL BUDGET DECREASE) EXPENDITURES PERSONNEL 770,874 761,213 500,358 790,198 28,985 CONTRACTUAL 396,728 463,400 350,819 481,650 18,250 SUPPLIES 27,462 67,700 41,524 63,650 4,050) OTHER 107,429 116,274 75,386 99,795 16,479) CAPITAL EXPENDITURES 0 0 0 0 0 TOTAL 1,302,493 1,408,587 968,087 1,435,293 26,706 INCREASE PERSONNEL AUTHORIZATION 2013/14 2014/15 2015/16 2016/17 DECREASE) TOTAL 8.00 6.00 6.00 6.00 0.00 2015/16 2015/16 2016/17 2016/17 AMOUNT PERCENTAGE AMOUNT PERCENTAGE FUNDING SOURCE GENERAL REVENUES 1,406,087 99.8 1,432,793 99.8 TRANSFER FROM OTHER FUNDS 2,500 0.2 2,500 0.2 TOTAL 1,408,587 100.0 1,435,293 100.0 Budget Highlights Personnel costs increase due to providing union employees increases, non -bargaining unit employees merit -based increases as well as increases to retirement and insurance costs. Contractual services increase $18,250 due to increased costs for mosquito abatement as well as increased training costs for leadership training. Supplies expenses decrease $4,050 due to prior years' actual spending. Transfer for Information Technology increases $3,396 to cover additional IT expenses including personnel costs and software maintenance, while Transfer for Risk Management decreases 18,875 due to lower premium costs. 40 Administration Office Personnel Review Administration Office Personnel Schedule 2015/16 Budget 2016/17 Budget Change Dollars Number of Dollars Number of Dollars Number of Salaries Grade Budgeted Employees Budgeted Employees Budgeted Employees City Administrator 18 151,439 1.00 154,570 1.00 3,131 0.00 Director of Economic Development 14 97,382 1.00 100,060 1.00 2,678 0.00 Deputy City Administrator 14 85,139 1.00 87,693 1.00 2,554 0.00 Human Resources Manager 12 85,123 1.00 84,633 1.00 490) 0.00 Executive Assistant 5 59,946 1.00 66,812 1.00 6,866 0.00 Bldg & Grnds Custodian I -A 45,667 1.00 50,391 1.00 4,724 0.00 Overtime 500 1,000 500 Temporary 0 0 0 Sickpay Buyback/Health Insurance Incentive 5,527 3,139 2,388) Administrator Car Allowance 4,200 4,200 0 Salary Adjustment 12,825 13,683 858 Severance 0 0 0 Longeuty Bonus 0 0 0 Board & Commission 8,740 8,740 0 Total 556,488 6.00 574,921 6.00 18,433 0.00 Benefits IMRF Retirement 73,946 76,434 2,488 FICA/Medicare 42,151 43,561 1,410 Health/Vision 83,561 90,316 6,755 Dental 4,203 4,102 101) Life Insurance 414 414 0 Uniform Allowance 450 450 0 Subtotal 204,725 215,277 10,552 Total 761, 213 790,198 28, 985 41 FY16-17 General Fund Budget FY16-17 Budget FY15-16 FY15-16 Budget Change Budget 8 month Actual Elected Officials 4010 Salaries 36,943) 36,943 27,719 4040 Temporary 4050 Overtime 500) 500 4190 Salary Adjustment 924) 924 4210 Elected Official Salaries 53,900 2,550) 56,450 32,233 4310 Health/Vision 9,075) 9,075 5,855 4320 Dental Insurance 417) 417 269 4330 Life Insurance 69) 69 30 4340 Vision Insurance 69) 69 44 4410 FICA Medicare 4,123 3,131) 7,254 4,490 4420 IMRF Retirement 5,180) 5,180 3,241 4510 Uniform Allowance Total Personnel 58,023 58,858)1 116,881 73,881 1 5110 Contractual Services 250) 250 5310 Postage & Meter 6,300 6,300 4,479 5320 Telephone 1,000 500) 1,500 661 5330 Printing & Publishing 6,500 6,500 1,355 5410 Dues 1,100 300 800 630 5420 Travel 250 250 259 5430 Training 1,500 1,075) 2,575 5450 Publications 500 400 100 426 Total Contractual 17,150 1,125) 18,275 7,810 6110 Materials and Supplies 500) 500 6210 Office Supplies 200 300) 500 58 6270 Small Equipment 6910 Employee Recognition Total Supplies 200 800) 1,000 58 6940 Administrative Expense 19,300 19,300 2,499 9922 Purch Service - Info Tech 5,843 10,569) 16,412 10,941 Total Other 25,143 10,569) 35,712 13,440 8300 Capital - Equipment Total Capital Total Elected Officials Department 100,516 71,352) 171,868 95,189 42 114 CITY OF MCHENRY ELECTED OFFICIALS W Elected Officials Mission Statement It is the mission of the Mayor, City Council, and City Clerk to serve the citizens of the City of McHenry. Primary Functions —> The following are the primary functions for each of the elected offices. Mayor's Office: The primary function of the Mayor is to provide leadership, initiative, and direction necessary to provide quality services to the citizens of McHenry. Recommend appointment of members to the various Boards and Commissions within the City. City Council: The City Council is the legislative body for the City of McHenry. Adoption of laws, ordinances and resolutions, as deemed proper to promote and protect the high level of service quality and financial stability in the City. City Clerk: The City Clerk has responsibility for taking minutes for all regular City Council meetings, standing council committee meetings, and planning and zoning board meetings. The City Clerk is also responsible for records management. 2016/17 Goals and Objectives Continue to support the implementation of economic development initiatives for the redevelopment of vacant and/or underutilized properties throughout the community. Promote, encourage, initiate, and realize redevelopment in the downtown areas in the City of McHenry. Make customer service a priority in all interactions between organization and residents of the City of McHenry and between employees within the organization. Plan for and provide public facilities and infrastructure to meet the needs of the community and organization. Maintain the community as a safe place to live, work, and play. 44 Elected Officials Budget Summary ELECTED OFFICALS BUDGET SUMMARY 8 month 2014/15 2015/16 2015/16 2016117 INCREASE ACTUAL BUDGET ACTUAL BUDGET DECREASE) EXPENDITURES PERSONNEL 95,938 116,881 73,881 58,023 58,858) CONTRACTUAL 14,919 18,275 7,810 17,150 1,125) SUPPLIES 178 1,000 58 200 800) OTHER 33,783 35,712 13,440 25,143 10,569) CAPITAL EXPENDITURES 0 0 0 0 0 TOTAL 144,818 171,868 95,189 100,516 71,352) INCREASE PERSONNEL AUTHORIZATION 2013/14 2014/15 2015/16 2016/17 (DECREASE) TOTAL 1.00 1.00 1.00 1.00 0.00 2015/16 2015/16 2016117 2016/17 AMOUNT PERCENTAGE AMOUNT PERCENTAGE'' FUNDING SOURCE GENERAL REVENUES $171,868 100.0 100,516 100.0 TOTAL $171,868 100.0 100,516 100.0 Budget Highlights Personnel expenses decrease $58,858 due to a transfer of the office assistant to the Community and Economic Development department. Contractual and supplies expenses decrease to better match actual expenses over the last few years. Other expenses decrease due to a decrease in Purchase of services, risk management transfer due to lower estimated premiums. 45 Elected Officials Personnel Review Salaries Mayor City Clerk Office Assistant Overtime Sickday Buyback Incentive Longevity Bonus Salary Adjustment Total Benefits IMRF Retirement Insurance rm Allowance Elected Officials Personnel Schedule 2015/16 Budget Dollars Number of Grade Budgeted Employees Elected 17,300 Elected 29,400 Elected 9,750 2 36,943 1.00 500 0 0 924 94,817 1.00 5,180 7,254 9,144 417 69 0 22,064 116,881 2016/17 Budget Dollars Number of Budgeted Employees 17,300 29,400 7,200 0 0.00 0 0 0 0 53,900 0.00 0 4,123 0 0 0 0 4,123 58, 023 Change Dollars Number of Budgeted Employees 0 0.00 0 0.00 2,550) 0.00 36,943) 1.00) 500) 0 0 40, 917) 0.001 5,180) 3,131) 9,144) 417) 69) 0 17,941) 58, 858) 46 COMMUNITY AND ECONOMIC DEVELOPMENT FY16-17 General Fund Budget FY16-17 Budget FY15-16 FY15-16 Budget Change Budget 8 month Actual Community and Economic Development 4010 Salaries 470,138 133,193 336,945 226,645 4050 Overtime 1,500) 1,500 4190 Salary Adjustment 11,753 3,292 8,461 4310 Health/Vision 130,049 29,094 100,955 65,110 4320 Dental Insurance 5,083 747 4,336 2,794 4330 Life Insurance 545 165 380 163 4340 Vision Premiums 260 111 149 97 4410 FICA Medicare 36,865 10,327 26,538 16,127 4420 IMRF Retirement 65,055 18,223 46,832 29,487 4510 Uniform Allowance 750 750 Total Personnel 720,498 194,402 526,096 340,423 5110 Contractual Services 39,962 17,500 22,462 35,640 5310 Postage & Meter 1,200 1,200 761 5320 Telephone 3,000 800) 3,800 1,466 5330 Printing & Publishing 500 500 173 5370 Repairs & Maint - Vehicles 1,600 1,600 1,518 5410 Dues 700 700 160 5420 Travel Expenses 250 250 455 5430 Training 1,200 1,200 5440 Tuition Reimbursement 5450 Publications 3,000 2,500 500 Total Contractual 51,412 19,200 32,212 40,173 6110 Materials and Supplies 6,400 6,400 60 6210 Office Supplies 2,000 2,000 1,139 6250 Gasoline and Oil 5,000 5,000 3,154 6270 Small Equipment 500 500 11 Total Supplies 13,900 6,900 7,000 4,364 7110 Cap. Lease Princpl Pyments + 1,550 395) 1,945 9920 Purch Sery - Risk Mgt 25,116 179) 25,295 16,863 9922 Purch Sery - Info Tech 45,744 7,190 38,554 25,703 Total Other 70,860 7,011 63,849 42,566 8200 Capital - Building 8400 Capital - Vehicles Total Capital Total Community & Economic Development Department 858,220 227,118 1 631,102 1 427,526 48 Community & Economic Development Mission Statement The Community and Economic Development Department's mission is to foster orderly growth and development of the City, provide quality customer service and timely responses to inquiries and requests for service. The department is also responsible for improving the quality of life for the residents of the community and assist in attracting, retaining and serving businesses, as well as protecting the health, safety and welfare of the community through proper administration and enforcement of City ordinances, property maintenance codes, zoning regulations and building codes. Primary Functions —> The following are the department's primary areas of responsibility: Planning and Economic Development: The Community and Economic Development Department is the first point of contact with potential businesses, developers, citizens and elected officials regarding service inquiries, development projects and potential new business opportunities. The department is responsible for effectuating orderly physical and economic growth of the City, attracting, retaining and serving businesses and residents in the community. Neighborhood Services: The department is responsible for the enforcement of the International Property Maintenance Code and other City ordinances, responding in a timely manner to citizen inquires and requests for service in order to maintain the high quality of life citizens enjoy on a daily basis. Construction Services: The department reviews all minor, temporary use, residential and commercial permits and provides building, mechanical, electrical inspections for existing and new construction. 2015/16 Accomplishments Continued multi -faceted effort to retain existing businesses and attract new businesses to the City. Continued to improve customer service by establishing performance goals for processing permits. Expanded efforts to utilize BS&A building permit software/code enforcement system to its fullest extent. Improved department permit processing efficiency and instituted more proactive code enforcement approach throughout City. Maintained building inspection and code enforcement services program for the Village of Prairie Grove. Reviewed municipal code to identify and address inconsistencies, ways to be more business - friendly and proposed updated regulations to reflect current trends including amendments to the fence and sign ordinances. Reviewed and made recommended changes to the fence ordinance. Updated city's Storm Water ordinance to reflect changes and mandates required by the McHenry County Storm Water department. Updated the zoning ordinance pertaining to outdoor seating and entertainment. 49 Community & Economic Development Analyzed report completed by Chicago Metropolitan Agency for Planning in 2013 and recommend amendments to the comprehensive plan, zoning ordinance, municipal code and subdivision control and development ordinance to address and improve upon groundwater protection, decreasing stormwater runoff and increasing more on -site stormwater infiltration. Continued to work with taxing bodies in formulating boiler plate agreement and policy to establish and implement incentive review procedures in an effort to encourage expedited occupancy of large vacant buildings and underutilized properties. 2016/17 Goals and Objectives Finalize an Intergovernmental Agreement and procedures to work more closely with McHenry Township Fire Protection District (MTFPD) for the conducting of annual business inspections. Develop a code enforcement strategy to help in providing a direction to staff, council and the community. Continue to provide highest quality of building inspection and code enforcement services to the residents of McHenry through a proactive, educational, and compliance based approach. Aggressively pursue redevelopment of Miller Point Continue to work with interested parties to reopen Downtown McHenry Theater Continue business retention visits to primary employers Continue implementation of BS&A building permit/code enforcement software, with a focus on development of customized reports. Continue aggressive implementation of economic development efforts through support of Director of Economic Development. Perform a thorough review of the adjudication process and makes changes where necessary based on findings. Review the accessory structure, lighting and sound ordinances with input from the Community Development Committee and make necessary changes. 50 Community & Economic Development Budget Summary COMMUNITY & ECONOMIC DEVELOPMENT BUDGET SUMMARY 8 MONTH 2014/15 2015/16 2015/16 2016/17 INCREASE ACTUAL BUDGET ACTUAL BUDGET DECREASE) EXPENDITURES PERSONNEL 505,174 526,096 340,423 720,497 194,401 CONTRACTUAL 39,152 32,212 40,173 51,412 19,200 SUPPLIES 12,284 7,000 4,364 13,900 6,900 OTHER 63,886 65,794 42,566 72,410 6,616 CAPITAL EXPENDITURES 0 0 0 0 0 TOTAL 620, 496 631,102 427, 526 858, 219 227,117 INCREASE PERSONNEL AUTHORIZATION 2013/14 2014/15 2015/16 2016/17 DECREASE) TOTAL 6.00 5.50 5.50 7.90 2.40 2015/16 2015/16 2016/17 2016/17 AMOUNT PERCENTAGE AMOUNT PERCENTAGE FUNDING SOURCE BUILDING PERMIT FEES 82,688 13.5 91,163 10.6 PLUMBING INSPECTION 5,513 0.9 7,000 0.8 ZONING/PLAT FEES 6,000 1.0 10,000 1.2 PROPERTY FINES 4,700 0.8 30,000 3.5 GENERAL REVENUES 512,743 83.8 720,056 83.9 TOTAL 611,644 100.0 858,219 100.0 Budget Highlights Personnel expenses increase $194,401 due to the addition of a CED Director, transfer of an administrative assistant from the Elected Officials department, addition of a part-time office assistant as well as merit -based increases for non -bargaining unit employees as well as increases to retirement and insurance costs. Contractual Costs increase $19,200 due to additional mowing costs; these costs are recouped when the property owners are billed. Supplies costs increase $6,900 due to the need for a color scanner. Purchase of services, information technology costs increase by $7,190 to cover actual expenses within that fund including increases in personnel costs as well as software maintenance costs. 51 Community & Economic Development Personnel Review Community & Economic Development Personnel Schedule 2015/16 Budget Dollars Number of Salaries Grade Budgeted Employees Director of Community Development 14 0 0.00 Supt. Commercial Inspections 11 83,243 1.00 Supt. Residential Inspections 11 78,258 1.00 Plumbing Inspector 6 33,448 0.50 Permit Tech 50,844 1.00 Code Compliance Inspector 3 46,746 1.00 Admin Assistant 2 44,195 1.00 Office Assistant 0 0.00 Overtime 1,500 Longevity Bonus 0 Sickday Payback Incentive 211 Salary Adjustment 8,461 Subtotal 346,906 5.50 2016/17 Budget Change Dollars Number of Dollars Number of Budgeted Employees Budgeted Employees 82,284 1.00 82,284 1.00 85,532 1.00 2,289 0.00 80,410 1.00 2,152 0.00 34,201 0.50 753 0.00 41,000 1.00 9,844) 0.00 47,798 1.00 1,052 0.00 85,045 2.00 40,850 1.00 13,312 0.40 13,312 0.40 0 1,500) 0 0 556 345 11,753 3,292 481,891 7.90 134,985 2.40 Benefits IMRF Retirement 46,832 65,055 18,223 FICA/Medicare 26,538 36,865 10,327 HealthNision 101,104 130,309 29,205 Dental 4,336 5,083 747 Life Insurance 380 545 165 Uniform Allowance 0 750 750 Subtotal 179,190 238,607 59, 417 Total $526,096 $720,497 $194,401 52 FINANCE n W FY16-17 General Fund Budget FY16-17 Budget FY15-16 FY15-16 Budget Change Budget 8 month Actual Finance 4010 Salaries 229,812 5,592 224,220 155,275 4030 Salraries - PT 39,906 13,834 26,072 11,464 4050 Overtime 4190 Salary Adjustment 6,743 486 6,257 4310 Health/Vision 76,602 4,214 72,388 47,044 4320 Dental Insurance 2,997 222 2,775 2,009 4330 US Life Insurance 317 317 137 4340 Vision Insurance 89 39) 128 87 4410 FICA Medicare 21,149 1,523 19,626 11,852 4420 IMRF Retirement 37,322 2,688 34,634 21,693 4510 Uniform Allowance Total Personnel 414,937 28,520 386,417 249,561 5110 Contractual Services 5,395 725 4,670 7,012 5310 Postage & Meter 30,200 5,000 25,200 25,238 5320 Telephone 600 400) 1,000 364 5330 Printing & Publishing 21,235 3,250 17,985 12,647 5410 Dues 525 525 225 5420 Travel Expenses 5430 Training 500 500 5440 Tuition Reimbursements 5450 Publications Total Contractual 58,455 8,575 49,880 45,486 6110 Materials and Supplies 82 6210 Office Supplies 7,500 900 6,600 5,816 6270 Small Equipment 2,000) 2,000 90 Total Supplies 7,500 1,100) 8,600 5,988 6940 Administrative Expenses 6945 Development Expense 415,000 140,000 275,000 344,918 9904 Transfer to Debt Service 729,319 641) 729,960 486,640 9907 Transferto SSA 9909 Transfer to MFT 9942 Transfer to Capital Improvements Fund 2,381,459 1,318,959 1,062,500 708,333 9944 Transfer to Band Fund 15,000 15,000 10,000 9945 Transfer to Civil Defense Fund 8,000 3,000 5,000 3,333 9946 Transfer to Capital Equipment Fund 243,225) 243,225 162,150 9920 Purch Sery - Risk Mgt 17,178 2,552) 19,730 13,153 9922 Purch Sery - Info Tech 63,655 9,695 53,960 35,973 9938 Employee Insurance Transfer I - Total Other 3,629,611 1,225,236 2,404,375 1,764,500 Total Finance Department 4,110,503 1,261,231 2,849,272 2,065,535 54 Finance Department 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. Primary Functions —> There are three primary operating functions within the Finance Department. 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. 2015/16 Accomplishments Completed the conversion to Tyler Technologies Incode Version 10. Worked to find alternative methods for residents to pay bills electronically as well as have the ability to look up their bill electronically. Continued working with the state to join the Local Debt Recovery Program in order to capitalize on the states resources to collect bad debt. Cleaned up the budget process, creating new summary sheets to better outline data. 2016/17 Goals and Objectives Improve management of the City's investment portfolio, including implementing cash flow modeling and investment strategies. Continue to familiarize ourselves with the Tyler software, working with support when necessary to become proficient. Improve communication of information to new residents. Begin using the State of Illinois Local Debt Recovery program in order to be able to take advantage of garnishing tax return funds for residents that have bad debts. 55 Finance Department Budget Summary FINANCE DEPARTMENT BUDGET SUMMARY 8 months 2014/15 2015/16 2015/16 2016/17 INCREASE ACTUAL BUDGET ACTUAL BUDGET DECREASE) EXPENDITURES PERSONNEL 384,317 386,417 249,561 414,937 28,520 CONTRACTUAL 46,098 49,880 45,486 58,455 8,575 SUPPLIES 43,989 8,600 5,988 7,500 1,100) OTHER 2,005,982 2,404,375 1,764,500 3,629,611 1,225,236 TOTAL 2,480,386 2,849,272 2,065,535 4,110,503 1,261,231 INCREASE PERSONNEL AUTHORIZATION 2012/13 2014115 2015/16 2016/17 DECREASE) TOTAL 4.60 4.60 4.60 5.00 0.40 2015/16 2015/16 2016/17 2011/12 BUDGET PERCENTAGE BUDGET PERCENTAGE FUNDING SOURCE PURCHASE OF SERVICE W/S FUND 451,925 15.9 458,704 11.2 GENERAL REVENUES 2,397,347 84.1 3,651,799 88.8 TOTAL 2,849,272 100.0 4,110,503 100.0 Budget Highlights Personnel costs increase due to providing non -bargaining unit employees merit -based increases as well as increases to retirement and insurance costs. Contractual costs increase due to postage and printing costs for water/sewer bills as well as vehicle stickers. Supplies costs decrease $1,100 due to a review of previous years' actual balances. Other costs increase $1,137,370. Developer incentives, a sales tax rebate, are expected to be 415,000 which is $140,000 more than last year. Transfers for capital items are at $2,349,593, which is an increase of $1,043,868 over last year, the IT fund transfer increases $9,695 due to increases in wage and benefits as well as software maintenance, and the Risk Management transfer decreases $2,552 due to lower premium costs. 56 Finance Department Personnel Review Finance Department Personnel Schedule 2015/16 Budget 2016/17 Budget Change Dollars Number of Dollars Number of Dollars Number of Salaries Grade Budgeted Employees Budgeted Employees Budgeted Employees Finance Director 15 85,139 1.00 87,267 1.00 2,128 0.00 Finance Specialist 3 135,981 3.00 139,445 3.00 3,464 0.00 Office Assistant 1 26,072 0.60 39,906 1.00 13,834 0.40 Overtime 0 0 0 Sickpay Buyback Incentive/Insurance Opt -Out 3,100 3,100 0 Salary Adjustment 6,257 6,743 486 Longevity Bonus 0 0 0 Salary Savings 0 0 0 Total 256,549 4.60 276,461 5.00 19,912 0.40 Benefits IMRF Retirement 34,634 37,322 2,688 FICA/Medicare 19,626 21,149 1,523 Health/Vision 72,516 76,691 4,175 Dental 2,775 2,997 222 Life Insurance 317 317 0 Uniform Allowance 0 0 0 Subtotal 129,868 138,476 8,608 Total 386,417 414,937 28,520 57 FY16-17 General Fund Budget FY16-17 Budget FY15-16 FY15-16 Budget Change Budget 8 month Actual Police Commission 4220 Salaries (Commissioners) 1,350 1,350 4410 Social Security 103 103 5110 Contractual Services 4,625 4,625 3,877 5330 Printing and Publishing 5410 Dues 375 375 375 5420 Travel Expenses 5430 Training 500 500 5450 Publications 6110 Materials & Supplies Total Police Commission 6,953 500 6,453 4,252 58 Police Commission Mission Statement It is the mission of the Police Commission to recruit and promote the best available persons possible for sworn positions with the McHenry Police Department. Primary Functions --> The primary function of the Police Commissioners is to select sworn personnel in accordance with the employment policy of the City of McHenry, as well as to investigate and conduct hearings regarding complaints alleged against any sworn member of the McHenry Police Department. Budget Summary EXPENDITURES PERSONNEL CONTRACTUAL TOTAL FUNDING SOURCE GENERAL REVENUES Budget Highlights No significant changes. POLICE COMMISSION BUDGET SUMMARY 8 month 2014/15 2015/16 2015/16 2016/17 INCREASE ACTUAL BUDGET ACTUAL BUDGET DECREASE) 1,453 $1,453 $0 1,453 0 5,929 5,000 4,252 5,500 500 7,382 $6,453 $4,252 6,953 500 2015/16 2015/16 2016/17 2016/17 AMOUNT PERCENTAGE AMOUNT PERCENTAGE 6,453 100.0 $6,953 100.0 6.453 100.0 $6.953 100.0 59 Thomas Walsh Commander Operations Division Patrol Division Street Crimes Unit Bicycle Unit John Jones Chief of Police John Birk Deputy Chief Police Critical Accident Unit Evidence Team Field Training Program Laura King Commander Support Services Division Accreditation Management Records Section Community Relatio NIPAS i I Records Section Communication Section Administrative Community Service Officer Training Function FY16-17 General Fund Budget FY16-17 Budget FY15-16 FY15-16 Budget Change Budget 8 month Actual Police Department 4010 Salaries 254,819 524,147) 778,966 612,314 4020 Sworn Salaries 4,116,926 8,051) 4,124,977 2,755,943 4030 Salaries Part time 49,580 41,715) 91,295 29,328 4050 Overtime 5,000 40,000) 45,000 40,469 4055 Sworn Overtime 244,500 244,500 174,770 4080 Dual Career 14,000 14,000 4190 Salary Adjustment 123,791 18,470 105,321 4310 Health/Vision 904,035 153,744) 1,057,779 681,616 4320 Dental Insurance 37,526 6,720) 44,246 28,595 4330 Life Insurance 3,674 596) 4,270 1,818 4340 Vision Insurance 1,783 720) 2,503 1,614 4410 FICA Medicare 367,859 45,551) 413,410 264,287 4420 IMRF Retirement 42,390 82,956) 125,346 84,830 4430 Contribution - Police Pension 1,524,244 136,870 1,387,374 1,386,205 4510 Uniform Allowance 29,800 3,600)I 33,400 1 15,824 Total Personnel 7,719,927 752,460) 8,472,387 6,077,613 5110 Contractual Services 87,830 7,020) 94,850 83,901 5310 Postage & Meter 3,000 3,000 2,416 5320 Telephone 46,280 2,800) 49,080 32,196 5370 Vehicle Repair and Maintenance 52,500 2,500 50,000 33,831 5410 Dues 1,800 1,800 485 5420 Travel Expense 18,000 1,325 16,675 8,339 5430 Training Expense 32,225 13,950) 46,175 13,560 5440 Tuition Reimbursement 12,000 4,000 8,000 5,652 5450 Publications 800 800 445 5510 Utilities 1,500 1 1,500 Total Contractual 255,935 15,945) 271,880 180,825 6110 Materials and Supplies 22,325 6,425 15,900 13,899 6210 Office Supplies 16,150 500) 16,650 9,691 6250 Gasoline and Oil 140,000 20,000) 160,000 63,064 6270 Small Equipment 7,775 6,920) 14,695 15,040 6310 K-9 Unit 5,300 5,300 2,281 6340 Forfeiture Expenses Total Supplies 191,550 20,995) 212,545 103,975 9922 Purch Sery - Info Tech 162,405 66,341) 228,746 152,497 9920 Purch Sery - Risk Mgt 234,349 33,484) 267,833 178,555 Total Other 396,754 99,825) 496,579 331,052 8300 Capital - Equipment 20,075 15,835 4,240 4,542 8400 Capital - Vehicle Total Capital 20,075 15,835 4,240 4,542 Total Police Department 8,584,241 873,390) 9,457,631 6,698,007 61 Police Department Mission Statement It is the mission of the City of McHenry Police Department to provide quality police services to the community by promoting a safe environment through police and citizen interaction with emphasis on integrity, fairness and professionalism. Primary Functions -> There are two operating divisions within the Police Department Administration: Administrative Services is responsible for administrative and support services in divisions that include patrol and support services. Patrol: Personnel assigned to this division are responsible for patrolling the community to deter and detect criminal activity, respond to calls for service both routine and emergency, and enforce traffic regulations. Support Services: The Support Services Division is responsible for tasks that support the efforts of the Patrol Division. The planning and research section and dispatch section also falls within this unit. 2015/16 Accomplishments In 2015/16 the McHenry Police Department was proud to hire two new patrol officers and three new dispatchers. All of these new employees were hired to replace vacancies from the 2014/15 fiscal year. We are excited to have them join our team. We are proud to hire Brett Kinney, previously from the Huntley Police Department, and Officer Ryan Erhart. The three dispatchers we hired are Katie Fitzgerald, Ryan Miller and John Giambeluca. The McHenry Police Department in an effort to accomplish the agency mission has participated in the following community based outreach programs during the 2015/2016 year: St. Baldrick's for juvenile cancer, Child Safety Seat inspections, Coffee with the Chief, School Safety, Adopt a School program (district 15), Dea Drug Take Back Program, and Tobacco Compliance Checks. Garden Quarter Community Days, Addition of the McHenry police Mobile App. This year we added second School resource officers so that we now have an SRO at each of our high schools. Continued a strong public relations effort through participation in more than seventeen (17) events geared at volunteerism and community outreach. Remained fiscally responsible and obtained more than $375,000 in grants and partnership funded law enforcement projects, including $136,000 from School District 156 for the continuation of the SRO program and adding of a second SRO Received our Forth accreditation award through the Commission on Accreditation for Law Enforcement (CALEA) helping us to maintain a standard recognized nationally for Law Enforcement services to the community. Providing dispatching services, for a fee, to neighboring agencies, which has reduced our overall operational cost of the Center by 25% or approximately $475,000 Maintained a high level of patrol/investigation calls for service — nearly 23,000 in 2015. Created multi Jurisdictional Accident investigation team with Johnsburg and Spring Grove Police Departments Partnered with the McHenry Township fire Protection District to expand dispatch services in our center. NVA Police Department 2016/17 Goals and Objectives Ensure that the McHenry police Department is active in applying for grants related to equipment and personnel funding. Determine if more agencies can be added to Multi Jurisdictional accident investigative team, primarily Woodstock and Lakemoor Police Departments. Reduce the number of vehicle accidents involving personal injury or death through increased seatbelt enforcement, speeding enforcement, DUI enforcement, roadside safety checks, car seat safety checks, and roadway enhancements. Continue successful operations of the McHenry Police Department Street Crimes Unit. 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 line level officers and employees as dictated by policy and statute. Continue operation of the CALEA Accreditation Program. Establish a plan that addresses the review and updating of school ready plans, including Building security, lockdown procedures, evacuation procedures and communication protocols. Reduce the number of vehicle accidents involving personal injury or death through increase seatbelt compliance, speeding enforcement, DUI Enforcement, car seat safety checks and roadway enhancements. 63 Police Department Budget Summary POLICE DEPARTMENT BUDGET SUMMARY 8 Month 2014/15 2015/16 2015/16 2016/17 INCREASE ACTUAL BUDGET ACTUAL BUDGET DECREASE) EXPENDITURES PERSONNEL 8,068,421 8,472,387 6,077,613 7,719,928 752,459) CONTRACTUAL 220,057 271,880 180,825 255,935 15,945) SUPPLIES 158,577 212,545 103,975 191,550 20,995) OTHER 482,582 496,579 331,052 396,754 99, 825) CAPITAL EXPENDITURES 57,069 4,240 4,542 20,075 15,835 TOTAL 8,986,706 9,457,631 6,698,007 8,584,242 873,389) INCREASE PERSONNEL AUTHORIZATION 2013/14 2014115 2015/16 2016/17 DECREASE) SWORN 46.00 46.00 47.00 47.00 0.00 NON -SWORN 14.88 14.88 14.88 5.75 9.13) TOTAL 60.88 60.88 61.88 52.75 a 13) 2015/16 2015/16 2016/17 2016/17 AMOUNT PERCENTAGE AMOUNT PERCENTAGE FUNDING SOURCE PROPERTY TAX LEVIES: POLICE PROTECTION 547,959 5.8 547,959 6.4 POLICE PENSION 1,387,374 14.7 1,524,244 17.8 CHARGES FOR SERVICE 562,630 5.9 562,630 6.6 FINES AND FORFEITURES 375,000 4 517,000 6.0 REIMBURSEMENTS 323,795 3.4 313,795 3.6 GENERAL REVENUES 6,260,873 66.2 5,118,614 59.6 TOTAL 9,457,631 100.0 8,584,242 100.1 Budget Highlights All expense categories decrease due to the movement of all dispatch expenses to its own dedicated department. Sworn personnel costs increase slightly due to the union contracts. The City's contribution for police pension was increased by $136,870 based on the actuarial required amount. Capital Equipment Capital equipment is budgeted for a evidence camera, evidence drying chamber, two replacement tasers, and an intoximeter. 64 Police Department Personnel Review Police Department Personnel Schedule 2015/16 Budget 2016/17 Budget Dollars Number of Dollars Number of Salaries Grade Budgeted Employees Budgeted Employees Sworn Police Chief 16 115,217 1.00 118,385 1.00 Deputy Chief/Commanders 14/13 301,610 3.00 311,412 3.00 Sergeant 12 661,454 7.00 674,681 7.00 Patrol Officer FOP-1 2,886,265 36.00 2,840,037 36.00 Non -Sworn Administrative Assistant 2 48,881 1.00 50,348 1.00 IT Specialist 7 56,295 0.88 49,580 0.75 Records Clerk FOP -II 96,075 2.00 99,221 2.00 Community Service Officer FOP -II 102,823 2.00 105,250 2.00 Civilian Overtime 5,000 5,000 Sworn Overtime 244,500 244,500 Holidays 111,800 130,000 Sickday Payback Incentive 19,381 17,161 Severance (Benefit Time) 0 0 Dual Career 0 0 On -Call Pay 14,000 14,000 Officer in Charge Special Pay 7,000 7,000 Investigator Stipend 3,000 3,000 Field Training Officer 2,750 2,750 Longevity Bonus 0 0 Salary Adjustment 88,894 123,791 Insurance Opt -Out 12,500 12,500 Subtotal 4,777,445 52.88 4,808,617 52.75 Change Dollars Number of Budgeted Employees 3,168 0.00 9,802 0.00 13,227 0.00 46,228) 0.00 1,467 0.00 6,715) (0.13) 3,146 0.00 2,427 0.00 0 0 18,200 2,220) 0 0 0 0 0 34,897 0 31,172 (0.13) Benefits Police Pension 1,387,374 1,524,244 136,870 IMRF Retirement 40,618 42,390 1,772 FICA Medicare 365,398 367,859 2,461 Health/Vision 903,576 905,818 2,242 Dental 40,028 37,526 2,502) Life Insurance 3,649 3,674 25 Uniform Allowance 29,800 29,800 0 Subtotal 2,770,443 2,911,311 140,868 Total 7,547,888 52.88 $7,719,928 52.75 $172,040 (0.13) Note: E = Exempt Position; N = Non -Exempt Position; FOP-1 = Unit One Police Union; and FOP -II = Unit Two Police Union 65 FY16-17 General Fund Budget FY16-17 Budget FY15-16 FY15-16 Budget Change Budget 8 month Actual Dispatch Department 4010 Salaries 879,889 879,889 4030 Salaries Part time 71,527 71,527 4050 Overtime 55,000 55,000 4190 Salary Adjustment 16,750 16,750 4310 Health/Vision 292,094 292,094 4320 Dental Insurance 8,919 8,919 4330 Life Insurance 983 983 4340 Vision Insurance 422 422 4410 FICA Medicare 78,272 78,272 4420 IMRF Retirement 130,702 130,702 4510 Uniform Allowance 5,500 5,500 Total Personnel 1,540,058 1,540,058 5110 Contractual Services 22,980 22,980 5310 Postage & Meter 250 250 5320 Telephone 4,032 4,032 5420 Travel Expense 6,050 6,050 5430 Training Expense 9,400 9,400 5440 Tuition Reimbursement 3,500 3,500 5510 Utilities 500 500 Total Contractual 46,712 46,712 6110 Materials and Supplies 10,220 10,220 6210 Office Supplies 1,200 1,200 6270 Small Equipment 4,100 4,100 Total Supplies 15,520 15,520 9922 Purch Sery - Info Tech 94,245 94,245 9920 Purch Sery - Risk Mgt 40,532 40,532 Total Other 134,777 134,777 Total Dispatch Department 1,737,067 1,737,067 Dispatch Department Mission Statement It is the mission of the City of McHenry Dispatch Department to be an integral part of the public safety team by offering a high quality of services to callers and the field responders serviced by our center. Primary Functions -> To provide emergency and non -emergency phone answering and dispatch services to our police and fire customers. 2016/17 Goals and Objectives Improve the quality of services provided to public safety agencies prepare for growth as defined in the sate mandated consolidation requirement Define partnerships and new customers for the center Remodel the center to accommodate growth, new technology requirements and redundancy requirements Hire additional staff as needed enhance the training program for dispatch staff Develop a plan and start working towards separate accreditation for our dispatch Center Develop a standalone policies and operational practices for the center. Ensure that the McHenry police Department is active in applying for grants related to equipment and personnel funding. Develop plan to expand the Dispatch center so that we can provide emergency dispatch services for more communities, therefore reducing our overall costs to the city. 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. 67 Dispatch Department Budget Summary DISPATCH DEPARTMENT BUDGET SUMMARY 8 Month 2014/15 2015/16 2015116 2016/17 INCREASE ACTUAL BUDGET ACTUAL BUDGET DECREASE) EXPENDITURES PERSONNEL 0 924,499 0 1,540,058 615,559 CONTRACTUAL 0 9,450 0 46,712 37,262 SUPPLIES 0 3,700 0 15,520 11,820 OTHER 0 0 0 134,777 134,777 CAPITAL EXPENDITURES 0 0 0 0 0 TOTAL 0 937,649 0 1,737,067 799,418 INCREASE PERSONNEL AUTHORIZATION 2013/14 2014/15 2015/16 2016/17 DECREASE) NON -SWORN 9.00 11.25 2.25 TOTAL 0.00 0.00 9.00 11.25 2.25 2015/16 2015/16 2016/17 2016/17 AMOUNT PERCENTAGE AMOUNT PERCENTAGE FUNDING SOURCE CHARGES FOR SERVICE 0 602,068 34.7 REIMBURSEMENTS 0 0 0.0 GENERAL REVENUES 0 1,134,999 65.3 TOTAL 0 0.0 1,737,067 100.0 Budget Highlights All expenses for dispatch were previously accounted for within the police budget. Dispatch Department Personnel Review Dispatch Department Personnel Schedule 2015/16 Budget 2016/17 Budget Change Dollars Number of Dollars Number of Dollars Number of Salaries Grade Budgeted Employees Budgeted Employees Budgeted Employees Civilian Supervisor 0 0.00 86,830 1.00 86,830 1.00 IT Specialist 7 0 0.00 16,527 0.25 16,527 0.25 Communications Dispatch FOP -II 531,187 9.00 629,614 11.00 98,427 2.00 Communications Dispatch - partial year 134,485 9.00 134,485 9.00 Civilian Part Time 35,000 55,000 20,000 Civilian O\ertime 40,000 55,000 15,000 Holidays 0 15,000 15,000 Sickday Payback Incentive 0 2,960 2,960 CTO Pay 0 7,000 7,000 Salary Adjustment 16,427 16,750 323 Insurance Opt -Out 4,000 4,000 0 Subtotal 626,614 9.00 1,023,166 21.25 396,552 12.25 Benefits IMRF Retirement 84,728 130,702 45,974 FICA 48,012 78,272 30,260 Health/Vision 156,706 292,516 135,810 Dental 4,218 8,919 4,701 Life Insurance 621 983 362 Uniform Allowance 3,600 5,500 1,900 Subtotal 297,885 516,892 219,007 Total 924,499 9.00 1,540,058 21.25 615,559 12.25 PUBLIC WORKS VO FY16-17 General Fund Budget FY16-17 Budget FY15-16 FY15-16 Budget Change Budget 8 month Actual Public Works Administration 4010 Salaries 341,506 187,593 153,913 103,303 4050 Overtime 73 4190 Salary Adjustment 8,515 4,689 3,826 43101 Health/Vision 92,345 50,609 41,736 26,608 43201 Dental Insurance 3,274 1,598 1,676 1,082 4330 Life Insurance 311 173 138 59 4340 Vision Insurance 128 44 84 54 4410 FICA Medicare 26,777 14,710 12,067 7,581 4420 IMRF Retirement 47,253 25,958 21,295 13,507 4510 Uniform Allowance 300 300 Total Personnel 520,409 285,674 234,735 152,267 5110 Contractual Services 53,500 48,900 4,600 948 5310 Postage & Meter 400 400 194 5320 Telephone 2,400 600) 3,000 895 5410 Dues 380 380 130 5420 Travel Expenses 500 400) 900 5430 Training Expenses 2,000 2,000 103 5440 Tuition Reimbursement Total Contractual 59,180 47,900 11,280 2,270 6210 Office Supplies 1,000 1,000 684 6270 Small Tools & Equipment 2,000 400 1,600 1,327 Total Supplies 3,000 400 2,600 2,011 6950 Forestry 227,585 227,585 9920 Purch Sery - Risk Mgt 10,081 1,062 9,019 6,013 9922 Purch Sery - Info Tech 17,433 3,354 14,079 9,386 Total Other 255,099 232,001 23,098 15,399 8300 Capital - Equipment Total Capital Total Public Works Administration 837,688 565,975 271,713 171,947 71 Public Works - Administration Mission Statement It is the purpose of the Public Works Department's Administration Division to provide direction and administrative support to the Department of Public Works. Within the Public Works Administration Department is the Forestry Division, and its mission statement is to provide residents with a quality urban forestry program that is cost effective and delivers good stewardship for the natural resources of the community. Primary Functions -> There are several primary operating functions within the Public Works Administration Division. Working with the Mayor, Council and City Administrator to ensure that the City's policies and programs for the department are carried out in addition to managing the department. Provide engineering services for a number of projects, plan review, and monitoring the work of the City's contracted engineering. Provide administration, oversight, budgeting and capital improvement program planning/implementation for the Street Division, Water Division, Wastewater Division, Utility Division, Fleet Maintenance Division and Forestry Division of the Public Works Department 2015/16 Accomplishments Administration of consolidation engineering design of the Central Wastewater Treatment Plant CWWTP) and the South Wastewater Treatment Plant (SWWTP) and the Facility Plan Amendment (FPA) and National Pollutant Discharge Elimination System (NPDES) Permit. Negotiations of permanent and temporary construction easement with McHenry Country Club to facilitate the SWWTP and CWWTP force main project. Administration of engineering and construction of the Fieldstone Sanitary Lift Station Project. Well #9 and #10 emergency repairs Administration of Water Tower 3 maintenance engineering and bidding process. Route 31/Miller/Bull Valley Road water main relocation construction Coordination of USEPA and IEPA and the McHenry County Health Department for the construction of the water main on River Road, south of Route 120. 2015 Road Program - engineering and construction 2015 Crack Sealing Maintenance Program- bid specifications, bidding and construction observation Administration of Phase I engineering for Curran Road S-curve Safety Improvements Administration of Phases I and 11 engineering for Pearl St/Lincoln Road Improvements. Bull Valley Road Improvement Phase II engineering including right of way negotiations. Knox Drive Extension — engineering and construction. McCullom Lake Road Phase III engineering and construction including easement negotiations with Union Pacific Railroad. Engineering and construction of Crystal Lake Road/Dartmoor Drive traffic signal. Management of biennial bridge inspections Negotiation of a one year extension of the collective bargaining agreement with Local 150 Operating Engineers 72 Public Works - Administration Administration of e-waste and Christmas lights recycling programs Administration of specifications, bids and purchase of Street Division one ton dump truck with snowplow and salt spreader. Administration of specifications, bids and purchase of Utility Division Sewer jetter Honorary Street sign approval for Virginia T. Williams. The 50/50 residential planting program "Plant Trees McHenry" was funded for the third year. This year's program included funding for 25 trees; 14 trees were planted through the program. Arbor Day was celebrated on April 24, 2015. The Lion's Club sponsored the planting of two trees in Fox Ridge Park in memory of past presidents, John Dunne and Robert Steiner. Six trees were planted in the park system this year at Veteran's Memorial Park, Knox Park, Petersen Park, and Fox Ridge Park. The City planted 99 trees in various parkways. Worked with the developer of Patriot Estates on final landscape review and acceptance. Crew members trimmed 325 city trees in Green Valley, Brittany Heights and at the Municipal Center. An additional 93 trees were pruned in the following parks: East Beach, West Beach, Lakeland Park Boat Launch, Lakeland Park Community Center, Brookside Park, Freund Field and Pheasant Valley. Three hundred and forty trees were removed in 2015. 74% of the tree removals were due to the Emerald Ash Borer. 2016/17 Goals and Objectives Provide effective communication with the City residents about the various Public Works projects, programs, and services. Ongoing management of the city's refuse collection contract and e-waste/ Christmas lights recycling programs Provide responsible financial leadership during challenging economic times while maintaining existing Public Works services. Implementation of the 2016/17 Capital Improvement Program which includes the following projects; 2016 road resurfacing program; 2016 asphalt pavement maintenance (crack sealing); Phase II engineering of the Ringwood Road Improvements, Pearl Street/Lincoln Road Improvements, Bull Valley Road Improvements, and Curran Road S-curve Improvements; vehicle replacement program; standby generator at the Public Works Facility; Water meter replacement program; Oakwood Drive sanitary sewer main rehabilitation; equipment/vehicles replacement; consolidation of the Central Wastewater Treatment Plant (CWWTP) and the South Wastewater Treatment Plant (SWWTP);sidewalk program; Water Treatment Plant #4 Maintenance; well inspection/maintenance and repair; sanitary sewer main rehabilitation program; sanitary sewer manhole rehabilitation program; tree replacement program; and water main replacement program. Negotiation of a collective bargaining agreement with Local 150 Operating Engineers Using the 50/50 residential planting program plant 25 trees- if funding is approved. Plant five trees for our annual Arbor Day celebration Plant ten trees in our park system Plant one hundred trees in the city parkways in Whispering Oaks, Gagetown, Edgebrook Heights Subdivisions and at the Municipal Center. Assist Developers with tree planting in new subdivisions. Continue work on the seven year pruning rotation in the subdivisions of Evergreen Park, Olde Mill Ponds, Mill Creek, Millstream, Winding Creek 5 and Park Ridge Estates. Inventory work will also be done in these areas. 73 Public Works - Administration Continue the five year pruning cycle for city parks Petersen Park and Farm, and Hickory Creek Farm including inventory work. 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. Coordinate the prescribed burn in spring of 2016 at Wheeler Fen with the Illinois Nature Preserves Commission. Perform prescribed burn in the area north of Dartmoor Drive. Remove woody vegetation and tree stumps with herbicide in a section of Boone Creek Corridor including Fox Ridge Park. Remove non-native species in the oak savannah area and treat with herbicide in a section of Petersen Park. Budget Summary PUBLIC WORKS DEPARTMENT -ADMINISTRATION DIVISION BUDGET SUMMARY 8 Month 2014/15 2015/16 2015/16 2016/17 INCREASE ACTUAL BUDGET ACTUAL BUDGET DECREASE) EXPENDITURES PERSONNEL 224,418 234,735 152,267 520,409 285,674 CONTRACTUAL 3,590 11,280 2,270 59,180 47,900 SUPPLIES 2,736 2,600 2,011 3,000 400 OTHER 22,549 23,098 15,399 255,099 232,001 CAPITAL EXPENDITURES 0 0 0 0 0 TOTAL 253,293 271,713 171,947 837,688 565,975 INCREASE PERSONNEL AUTHORIZATION 2013/14 2014/15 2015/16 2016/17 DECREASE) TOTAL 2.00 2.00 2.00 4.50 2.50 2015/16 2015/16 2016/17 2016/17 AMOUNT PERCENTAGE AMOUNT PERCENTAGE FUNDING SOURCE GENERAL REVENUES 271,713 100.0 837,688 100.0 TOTAL 271,713 100.0 837,688 100.0 Budget Highlights Personnel costs increase due to providing non -bargaining unit employees merit -based increases as well as increases to retirement and insurance costs. Personnel costs also increase due to the transfer of the Superintendent of Forestry from the parks department as well as the addition of a Project Engineer and a part-time office assistant. Contractual expenses increase due to costs for a Lakeland Park Drainage Study Other Expenses Increase due to the Forestry Division expenses being moved from the Parks Department budget. McHenry County funds for the purchase of trees are budgeted to be used at 182,085. 74 Public Works - Administration Personnel Review Salaries Director Administrative Assistant Superintendent of Forestry Project Engineer Part -Time Office Asst Overtime Sickday Payback Incentive Salary Adjustment Severance Pay Longevity Bonus Subtotal Public Works Department - Administration Division Personnel Schedule 2015116 Budget 2016/17 Budget Change Dollars Number of Dollars Number of Dollars Number of Grade Budgeted Employees Budgeted Employees Budgeted Employees 15 104,149 1.00 107,013 1.00 2,864 0.00 2 48,881 1.00 50,347 1.00 1,466 0.00 16 0 0.00 79,823 1.00 79,823 1.00 0 0.00 87,805 1.00 87,805 1.00 0 0.00 15,610 0.50 15,610 0.50 0 0 0 883 908 25 3,826 8,515 4,689 0 0 0 0 0 0 157,739 2.00 350,021 4.50 192,282 2,50 IMRF Retirement 21,295 47,253 25,958 FICA/Medicare 12,067 26,777 14,710 Health/Vision 41,820 92,473 50,653 Dental 1,676 3,274 1,598 Life Insurance 138 311 173 Uniform Allowance 0 300 300 Subtotal 76,996 170,388 93,392 Total 234,735 520,409 285,674 75 rn Dave Christopher Maintenance Worker Mike Freund Maintenance Worker Pedro Padro Maintenance Worker PUBLIC WORKS - STREETS Pat Maher Maintenance Worker Gary Mertz Maintenance Worker Maintenance Worker Mike Owsley Mechanic Ron Barta Maintenance Worker Paul Clements Maintenance Worker Jason McMahon Maintenance Worker Matt Rogers Mechanic Sam Burrafato Maintenance Worker Rick Leisten Maintenance Worker Jacob Reiley Maintenance Worker FY16-17 General Fund Budget FY16-17 Budget FY15-16 FY15-16 Budget Change Budget 8 month Actual Streets Department 4010 Salaries 1,155,641 6,212 1,149,429 790,572 4050 Overtime 15,000 4,000) 19,000 6,288 4060 Overtime - snow removal 80,000 80,000 17,834 4190 Salary Adjustment 31,150 5,051 26,099 4110 Salaries -Part-time Seasonal 20,000 20,000 4310 Health/Vision 361,083 12,617) 373,700 256,120 4320 Dental Insurance 2,275 282 1,993 1,334 4330 Life Insurance 1,242 1,242 535 4340 Vision Insurance 114 10 104 115 4410 FICA Medicare 99,587 2,086 97,501 61,729 4420 IMRF Retirement 173,042 981 172,061 106,612 4510 Uniform Allowance 8,470 1,470 7,000 3,832 Total Personnel 1,947,604 19,475 1,928,129 1,244,971 5110 Contractual Services 76,690 10,000) 86,690 99,578 5320 Telephone 4,000 1,750) 5,750 2,318 5370 Repr & Maint 105,000 105,000 51,528 5430 Training Expense 2,500 1,500 1,000 816 5440 Tuition Reimbursement 5510 Utilities 673 5520 Street Lighting 270,000 7,000) 277,000 186,118 Total Contractual 458,190 17,250) 475,440 341,031 6110 Materials & Supplies 220,000 220,000 175,028 6210 Office Supplies 1,500 1,500 832 6250 Gasoline & Oil 107,500 11,000) 118,500 38,615 6270 Small Equipment 5,000 5,000 2,862 6290 Safety Equipment 1,500 1,500 Total Supplies 335,500 11,000) 346,500 217,337 9920 Purch Sery - Risk Mgt 90,904 12,143) 103,047 68,698 9922 Purch Sery - Info Tech 11,811 2,272 9,539 6,359 Total Other 102,715 9,871) 112,586 75,057 8300 Capital - Equipment 8400 Capital - Vehicles 8600 Capital - Street Projects Total Capital Total Streets Department 2,844,009 18,646) 2,862,655 1,878,396 77 Public Works — Street Division Mission Statement It is the mission of the Street Division to support and enhance a high quality of life for the City's residents, businesses and visitors by providing a well -planned, environmentally sensitive, cost effective infrastructure through superb customer service. Primary Functions —> The primary function of the Street Maintenance Division includes street cleaning, street maintenance, and ensuring roadways are cleared of snow and ice conditions, and all administrative functions. Crews remove snow, control ice and conduct street cleaning in addition to making miscellaneous repairs. Maintain and repair all City owned vehicles and various equipment through the City garage with two full-time mechanics. Monitor maintenance of streetlights and signals by a private contractor. Maintain and repair the City's drainage system to prevent flooding. Monitor creek levels and maintain to prevent flooding. Advises the department director on fleet and infrastructure needs and responds to service requests. 2015/16 Accomplishments Crews resurfaced and repaired sections of streets throughout the City. Trimmed trees and removed 250 ash trees; completed the bi-annual brush program and responded to storm damage requests from residents. Replaced sidewalks and curbs. Drainage improvements. Implementation of the 2015 Crack Sealing program. Maintained city -owned vehicles and equipment. Right of way maintenance including parkway restoration, mowing, and creek cleaning. Assisted HR Green with overseeing the 2015 Road Program which included 4 streets. Managed snow removal, ice control, and conducted street cleaning in addition to making miscellaneous repairs. Assisted HR Green with overseeing the installation project of having a traffic light installed at Crystal Lake Rd and Dartmoor Dr. Assisted with the preparation for Fiesta Days and 4ch of July activities. Knox Drive has been extended between Municipal Drive and Miller Road. The approximately 552 feet improvement consisted of hot -mix asphalt pavement, concrete curb and gutter, landscape restoration, pavement striping, drainage accommodations, and a proposed driveway entrance south of Municipal Drive into an existing parking lot. A portion of McCullom Lake Road between Route 31 and the Village of McCullom Lake Road eastern boundary tracks has been improved for a total length of approximately 5,600 feet. The improvements consisted of traffic signal modernization, intersection capacity improvements, widening, asphalt removal, replacement, minor drainage improvements and new pavement markings. Additionally a new sidewalk has 78 Public Works — Street Division been constructed on the south side of the road in front of Petersen Park connecting to the existing Prairie Path bike route. 2016/17 Goals and Objectives Address all snow and ice events by clearing roadways to ensure safe travel on City streets. Continue drainage improvement work, particularly in the Lakeland Park and the City's northwest quadrant. Maintain the City's fleet so that it will operate efficiently and its useful life is extended. Repair and maintain city streets by dedicating crew to road resurfacing and pothole repair. Mowing the City's right of ways and property in a timely fashion. Respond to all resident requests in a timely manner. Maintain the City's storm sewer system. Maintain and repair City sidewalks and curb. Inspect and maintain the City owned street light systems. Assist with the preparation for Fiesta Days and 4 h of July activities. Capital Improvement Projects include the following: o Road resurfacing program o Asphalt pavement maintenance (crack sealing) o Equipment/vehicle replacement o Sidewalk Replacement Program deet Summa PUBLIC WORKS DEPARTMENT -STREETS DIVISION BUDGET SUMMARY 8 Month 2014/15 2015116 2015/16 2016/17 INCREASE ACTUAL BUDGET ACTUAL BUDGET DECREASE) EXPENDITURES PERSONNEL 1,888,259 1,928,129 1,244,971 1,947,604 19,475 CONTRACTUAL 536,821 475,440 341,031 458,190 17, 250) SUPPLIES 355,574 346,500 217,337 335,500 11,000) OTHER 112,213 112,586 75,057 102,715 9,871) CAPITAL EXPENDITURES 0 0 0 0 0 TOTAL 2,892,867 2,862,655 1,878,396 2,844,009 18,646) INCREASE PERSONNEL AUTHORIZATION 2013/14 2014/15 2015/16 2016/17 DECREASE) TOTAL 18.00 19.00 18.00 18.00 0.00 2015/16 2015/16 2016/17 2016/17 AMOUNT PERCENTAGE AMOUNT PERCENTAGE FUNDING SOURCE GENERAL REVENUES 2,862,655 100.0 2,844,009 100.0 TOTAL 2,862,655 100.0 2,844,009 100.0 Budget Highlights Personnel costs increase due to union contracts as well as providing non -bargaining unit employees merit -based increases as well as increases to retirement and insurance costs. Seasonal employees were also added back in for $20,W. Public Works - Street Division Contractual expenses decrease due to tree removal expenses being moved to the Public Works Administration budget. Supplies expenses decrease due to lower gasoline prices. Other expenses decrease due to the Purchase of Services, Risk Management transfer decreasing because of lower premium costs. Personnel Review Salaries Street Superintendent Crew Leader Mechanic Street Maintenance Worker Part -Time (Seasonal) Overtime Sickday Payback Incentive Salary Adjustment Longevity Bonus Subtotal IMRF Retirement FICA/Medicare Health/Wellness Dental Life Insurance Uniform Allowance Subtotal Total ks Department - Street Division Personnel Schedule 2015/16 Budget Dollars Number of Grade Budgeted Employees 12 88,032 1.00 10 156,516 2.00 1-8 154,870 2.00 1-6 745,388 13.00 0 99,000 4,623 26,099 0 2016/17 Budget Change Dollars Number of Dollars Number of Budgeted Employees Budgeted Employees 88,000 1.00 32) 0.00 160,038 2.00 3,522 0.00 157,968 2.00 3,098 0.00 744,987 13.00 401) 0.00 20,000 20,000 95,000 4,000) 4,648 25 31,150 5,051 0 0 1,274, 528 18.00 1,301, 791 172,061 173,042 97,501 99,587 373,804 361,197 1,993 2,275 1,242 1,242 7,000 8,470 653,601 645,813 1,928,129 1,947,604 18.00 981 2,086 12,607) 282 0 1,470 7,788) PARKS &RECREATION co FY16-17 General Fund Budget FY16-17 Budget FY15-16 FY15-16 Budget Change Budget 8 month Actual Parks Department 4010 Salaries - Regular 684,833 98,777) 783,610 434,976 4030 Salaries - PartTime 66,625 66,625 25,007 4050 Overtime 17,500 17,500 12,852 4110 Salaries -Seasonal 263,000 35,000 228,000 180,619 4190 Salary Adjustment 17,073 240 16,833 4310 Health/Vision 184,641 33,712) 218,353 125,044 4320 Dental Insurance 4,333 1,377) 5,710 3,188 4330 Life Insurance 759 138) 897 317 4340 Vision Insurance 291 168) 459 249 4410 FICA Medicare 80,251 236 80,015 48,596 4420 IMRF Retirement 97,120 13,302) 110,422 62,673 4510 Uniform Allowance 2,550 300 2,250 1,491 Total Personnel 11418,976 45,073) 1,464,049 895,012 5110 Contractual Services 245,850 28,100) 273,950 171,375 5310 Postage and Meter 10,650 1,400 9,250 2,424 5320 Telephone 15,450 15,450 9,256 5330 Printing & Publishing 8,500 1,700 6,800 3,223 5370 Repair and Maint 15,000 15,000 12,074 5410 Dues 126,633 300) 126,933 125,361 5420 Travel Expenses 500 500 5430 Training 5,350 2,200 3,150 1,739 5440 Tuition Reimbursement 5450 Publications 500 500 235 5510 Utilities 38,000 2,100 35,900 14,750 Total Contractual 466,433 21,000) 487,433 340,437 6110 Materials and Supplies 141,000 12,200 128,800 82,959 6210 Office Supplies 5,000 2,000 3,000 1,301 6250 Gasoline and Oil 20,000 6,000) 26,000 18,209 6270 Small Equipment 12,500 500 12,000 Total Supplies 178,500 8,700 169,800 102,469 6920 Special Events 27,800 1,200 26,600 24,017 6950 Forestry 48,000) 48,000 20,763 9920 Purch Sery - Risk Management 67,392 14,382) 81,774 54,516 9922 Purch Sery - Info Tech 53,015 10,028 42,987 26,938 Total Other Accounts 148,207 51,154) 199,361 126,234 8300 Capital - Equipment 8400 Capital - Vehicles 8800 Capital - Park Improvements 52,777 Total Capital 52,777 Total Parks Department 2,212,116 108,527) 2,320,643 1,516,929 Total General Fund Expenses 22,726,606 2,746,682 19,979,924 13,825,868 Surplus/( Deficit) 2,349,593) 597,564) 82 Parks and Recreation Department Mission Statement Recognizing leisure activities, facilities, and open spaces are important to individuals, families, and community life, 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. Primary Functions —> There are three primary operating divisions within the Parks and Recreation Department. Parks Maintenance: Responsible for planning, organization, and supervision of park maintenance activities for active parks, buildings, pool, beach, and athletic facilities. Forestry Planning: Address all forestry issues and maintenance of passive use park land. Review new subdivisions as well as landscape plans associated with new developments. Recreation: Responsible for providing quality recreation programs and events to residents of the community. Supervise staff and operations of Knox Park pool and concessions, Petersen Park beach and concessions, Althoff Park concessions, and McHenry Zone Skate & Bike Park. 2015/16 Accomplishments The Recreation Center construction began in April of 2015 and proceeded without delay. The 18,200 square foot center opened for business on February 29`h and has grown membership to almost 1,000 members by the end of the first month. A Recreation Center Manager was hired in September to finalize a great deal of processes associated with the daily operation of the center, as well as select equipment and hire part time staff. In June the city reclassified the Athletics position during the hiring process to fill the vacancy from a retirement of a long time employee. The position was transitioned to Athletics and Aquatic Supervisor reflecting the addition of the pool and beach responsibilities with the position. In February of 2016, the recreation side of the department was reorganized. The Recreation Center Manager was tasked with the supervision of the Athletics and Aquatics Supervisor and the Recreation Supervisor. The Recreation Center Manager will report directly to the Deputy City Administrator. While the Miller Riverfront Boat Launch took one step closer to becoming a reality when an intergovernmental agreement was drafted with a neighboring community to transfer the rights of the appropriately sized launch to the city of McHenry. The three tennis courts at Knox Park were resurfaced and restriped. These are the only tennis courts that remain actively used in the city's park system. Two new scoreboards were purchased in the spring to replace the existing scoreboards at Knox Park softball fields that have been consistently non-functioning. A new gazebo was purchased for the McBark Dog Park. It will be centrally placed in the large dog run area. Additionally, the city purchased another fountain for inside the park and will work with the city Public Works Department to assist with installation. The Althoff basketball courts at Freund Field are slated to be rescheduled in the Spring of 2016. The Parks Maintenance division dedicated a significant amount of effort to refurbish all the city baseball and softball fields. Be this though additional ballfield mix, new home plate and pitchers' mound or additional watering. Playgrounds were also a focus with over 750 yards of mulch spread thoughout the playground system. Veterans Memorial Park received a sound system upgrade including speakers on the five light poles throughout the park. 83 Parks and Recreation Department A large decorative clock donated by Tom Sullivan was refurbished though the assistance of a number of local companies. The clock was installed at Green Street park for our community to enjoy for years to come. New Character Counts banners were installed in the downtown areas The Green Street parking lot was resurfaced. 2016/17 Goals and Objectives Analyze the operations of the recreation center and finalize an updated Master Site Plan for the facility. Construct the bike path additions in conjunction with the Recreation Center project. Install an inflatable water course at the Petersen Park Beach. Monitor and complete a milfoil treatment of McCullom Lake if it is necessary. Resurface the parking lot at Lakeland Park Community Center. Renovate and repurpose the Petersen Park tennis courts that are currently unusable into new recreation opportunities. Pave the gravel surface road to the parking lot adjacent to field one at Petersen Park. Complete an analysis of the smaller barn at the Historic Petersen Farm. Also reseal the wooden silos and perform minor maintenance to the main barn. Finally, at the farm the house is slated to be re -roofed this coming year. Resurface Fox Ridge Park basketball court. Install new LED lighting on the light poles in Veterans Memorial Park. Work to maintain the quantity and quality of fee supported recreation and athletic programs. Cooperate with other community organizations and provide services for community special events. Continue to renovate facilities to comply with the recommendations of the ADA Access Audit. Begin repairs and capital improvements to existing park facilities: court sport areas, parking lots and playgrounds. 84 Parks and Recreation Department Budget Summa PARKS AND RECREATION DEPARTMENT BUDGET SUMMARY 8 months 2014/15 2013/14 2015/16 2016/17 INCREASE ACTUAL BUDGET ACTUAL BUDGET DECREASE) EXPENDITURES PERSONNEL 1,284,535 1,464,049 1,003,355 1,418,976 45,073) CONTRACTUAL 432,968 487,433 335,486 466,433 21,000) SUPPLIES 157,306 169,800 108,204 178,500 8,700 OTHER 173,382 199,361 119,417 148,207 51,154) CAPITAL EXPENDITURES 69,202 0 17,388 0 0 TOTAL 2,117,393 2,320,643 1,583,850 2,212,116 108,527) INCREASE PERSONNEL AUTHORIZATION 2014/15 2014/15 2015/16 2016/17 DECREASE) TOTAL 10.00 12.00 13.00 13.00 0.00 2015/16 2015/16 2016/17 2016/17 AMOUNT PERCENTAGE AMOUNT PERCENTAGE FUNDING SOURCE PROGRAM FEES 380,000 16.3 340,000 15.3 POOL AND BEACH REVENUES 129,000 5.5 128,160 5.8 CONCESSIONS 44,000 1.9 40,000 1.8 DONATIONS 9,000 0.4 9,000 0.4 GENERAL REVENUES 1,767,643 75.9 1,703,956 76.7 TOTAL 2,329,643 100.0 2,221,116 100.0 Budget Highlights Personnel expenses decrease due to the reclassification of the Superintendent of Forestry to Public Works Administration department as well as the movement of costs for the Recreation Center Manager to the Recreation Center Fund. Union contract wage increases and merit -based increases for non -bargaining unit employees as well as part-time staff costs for parks and recreation duties handled at the recreation center somewhat offset the savings from the two transferred positions. Contractual expenses decrease due to the reclassification of seasonal contractual costs to seasonal personnel costs. Supplies expenses increase due to extending the season at the Merkel Aquatic Center. Forestry expenses are transferred to the Public Works Administration budget. Purchase of services, information technology costs increase by $10,028 to cover actual expenses within that fund including increases in personnel costs as well as software maintenance costs, while Purchase of services, risk management costs decrease $14,382 due to lower premium costs. 85 Parks and Recreation Department Personnel Review Personnel Schedule 2015/16 Budget 2016/17 Budget Change Dollars Number of Dollars Number of Dollars Number of Salaries Grade Budgeted Employees Budgeted Employees Budgeted Employees Supt. Of Parks & Downtown Maintenance 12 88,031 1.00 90,452 1.00 2,421 0.00 Supt. of Forestry/Park Plan. 8 78,258 1.00 0 0.00 78,258) 1.00) Rec Prog Supervisor 9 70,756 1.00 72,702 1.00 1,946 0.00 Recreation Center Manager 50,000 1.00 0 0.00 50,000) 1.00) Asst. Superintendent of Parks 9 63,974 1.00 65,573 1.00 1,599 0.00 Athletic Prog Coordinator 5 52,869 1.00 50,028 1.00 2,841) 0.00 Admin. Assistant 2 48,881 1.00 49,859 1.00 978 0.00 Office Assistant 1 36,130 1.00 36,943 1.00 813 0.00 Park Maint Worker I-6A 228,438 4.00 251,466 4.00 23,028 0.00 Street Maint Worker I-C 64,608 1.00 65,900 1.00 1,292 0.00 Front Desk Attendants - Rec Center 0 66,625 66,625 Seasonal/Instructors 228,000 263,000 35,000 Overtime 17,500 17,500 0 Sickday Payback Incenti\,e 1,665 1,910 245 Salary Adjustment 16,833 17,073 240 Longevity Bonus 0 0 0 Subtotal 1,045,943 13.00 1,049,031 11.00 3,088 F(2.00) Benefits IMRF Retirement 110,422 97,120 13,302) FICA/Medicare 80,015 80,251 236 Health/Vision 218,812 184,932 33, 880) Dental 5,710 4,333 1,377) Life Insurance 897 759 138) Uniform Allowance 2,250 2,550 300 Subtotal 418,106 369,945 48,161) Total $1,464,049 $1,418,976 ($45,073) 0 I -ME HEART OF THE FOX RIVER: SPECIAL REVENUE FUND BUDGETS Tourism Fund (200.00) Pageant Fund (205.00) Band Fund (210.00) Civil Defense Fund (220.00) Alarm Board Fund (225.00) Audit Fund (230.00) Annexation Fund (260.00) Motor Fuel Tax Fund (270.00) Developer Donation Fund (280.41) Tax Increment Finance Fund (290.00) 87 Tourism Fund (200) Budget Request 8 month FY 2016-2017 2016/17 2015/16 2015/16 Bud&et Difference Budget Actual Revenues: 3142 Hotel/Motel Tax 140,000 140,000 124,745 3210 Interest Earnings 50 50 42 3220 CD Interest Total Revenues 140,050 140,050 124,787 Expenditures: 5110 Contractual 20,000 20,000 12,000 6940 Administrative Expense 9901. General Fund Transfer 75,000 75,000 65,000 9942 Transfer to OF T- 9944 Band Fund Transfer I Total Expenditures 1 95,000 1 95,000 1 77,000d Tourism Fund Purpose The purpose of the Tourism Fund is to finance tourism promotion for the City. Fund Highlights --> The primary function of the Tourism Promotion Fund is to provide funding to the McHenry County Convention and Visitor's Bureau (MCCVB). The City currently has a 5% tax on motel and hotel room receipts. This tax, along with similar ones enacted by other municipalities in McHenry County, is used to fund the McHenry County Convention & Visitors Bureau. Budget Summary EXPENDITURES CONTRACTUAL OTHER TOTAL FUNDING SOURCE HOTEL/MOTEL TAX INTEREST INCOME TOTAL Budget Highlights No significant changes. TOURISM FUND BUDGET SUMMARY 8 months 2014/15 2015/16 2015/16 2016/17 INCREASE ACTUAL BUDGET ACTUAL BUDGET DECREASE) 12,000 $20,000 12,000 20,000 0 75,000 75,000 65,000 75,000 0 87,000 $95,000 77,000 95,000 0 2015/16 2015116 2016/17 2016/17 AMOUNT PERCENTAGE AMOUNT PERCENTAGE 140,000 100.0 140,000 100.0 50 0.0 50 0.0 140,050 100.0 140,050 100.0 99 Pageant Fund (205) Budget Request FY 2016-2017 2016/17 2015/16 2 115/16 Budget Difference Budget Actual Revenues: 3210Interest 3815 Donations 500) 500 3890 Miscellaneous 3,600 550 3,050 3,749 3975 General Fund Transfer Total Revenues 3,600 50 3,550 3,749 Expenditures: 5110 Contractual 1,000 1,000 116 5310 Postage & Meter 50 50 6110 Supplies 6940 Miscellaneous 2,500 L 2,500 3,195 Total Expenditures 1 1 3,550 1 - 1 3,550 3,311 m Pageant Fund Purpose The purpose of the Pageant Fund is to account for revenues and expenditures used to conduct the Miss McHenry Pageant. Fund Highlight-> The Miss McHenry Pageant is an annual beauty contest for girls between the ages of 16 and 20. The pageant is a community tradition that has been held for almost 60 years. The contestants must live in the McHenry school district and have a McHenry address. A maximum of 15 contestants compete in the pageant each year and the entry fee for the contestants is $200 per girl. Budget Summary PAGEANT FUND BUDGET SUMMARY 8 months 2014/15 2015/16 2015/16 2016/17 INCREASE ACTUAL BUDGET ACTUAL BUDGET DECREASE) EXPENDITURES CONTRACTUAL 0 1,000 116 1,000 0 SUPPLIES 0 0 0 0 0 OTHER 3,333 2,550 3,195 2,550 0 TOTAL 3,333 3,550 3,311 3,550 0 2015/16 2015/16 2016/17 2016/17 AMOUNT PERCENTAGE AMOUNT PERCENTAGE FUNDING SOURCE DONATIONS 500 14.1 0 0.0 MISCELLANEOUS 3,050 85.9 3,600 100.0 TOTAL 3,550 100.0 3,600 100.0 Budget Highlights No significant changes. 91 Band Fund (210) Budget Request 8 months FY 2016-2017 2016/17 2015/16 2015/16 Budget Difference Budget Actual Revenues: 3010 Property Tax Collections 3815 Donations 3975 Transfer - General Fund 15,000 15,000 10,000 3180 Grants 3210 Interest Earnings 2 Total Revenues 15,000 15,000 10,002 Expenditures: 5110 Contractual 14,500 14,500 12,230 6110 Materials and Supplies 500 1 - 500 Total Expenditures 15,000 1 - 15,000 12,230 92 Band Fund Purpose The purpose of the Band Fund, a special revenue fund, is to finance and account for expenditures incurred in the provision of summer concerts to promote culture and recreation to the community. Fund Highlights - > The primary function of the municipal band is to provide eight concerts annually at the gazebo in Veterans Memorial Park. EXPENDITURES CONTRACTUAL OTHER TOTAL FUNDING SOURCE INTEREST EARNINGS TRANSFERS GRANTS PROPERTY TAX REVENUES TOTAL Budget Highlights No significant changes. BAND FUND BUDGET SUMMARY 8 months 2014/15 2015/16 2015/16 2016/17 INCREASE ACTUAL BUDGET ACTUAL BUDGET DECREASE) 12,539 $14,500 12,230 14,500 0 0 500 0 500 0 12,539 $15,000 12,230 15,000 0 2015/16 2015/16 2016/17 2016/17 AMOUNT PERCENTAGE AMOUNT PERCENTAGE 0 0.0 0 0.0 15,000 100.0 15,000 100.0 0 0.0 0 0.0 0 0.0 0 0.0 15,000 100.0 15,000 100.0 93 Civil Defense Fund (220) Budget Request 8 month FY 2016-2017 2016/17 2015/16 2015/16 Budget Difference Budget Actual Revenues: 3010 Property Tax Collections 3200 Interest Earnings 3975 Transfer from General Fund 8,000 3,000 5,000 3,333 Total Revenues 8,000 3,000 5,000 3,333 Expenditures: 5375 Repairs & Maintenance - Equip 5,300 2,100 3,200 6110 Materials and Supplies 9942 Transfer to OF 8000 Capital Outlay Total Expenditures 5,300 2,100 3,200 94 Civil Defense Fund Mission Statement It is the mission of the Civil Defense Fund to fund and account for expenditures incurred in 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. Fund Highlights --> The primary function of the Fund is maintaining the existing early warning siren system and purchasing additional sirens for newer sections of the community in coming years. Budget Summary EXPENDITURES OTHER TOTAL FUNDING SOURCE INTEREST EARNINGS OTHER REVENUE PROPERTY TAX REVENUES TOTAL Budget Highlights CIVIL DEFENSE FUND BUDGET SUMMARY 8 months 2014/15 2015116 2015/16 2016117 INCREASE ACTUAL BUDGET ACTUAL BUDGET DECREASE) 10, 368 $3, 200 0 $5, 300 2,100 10,368 $3,200 0 $5,300 2,100 2015/16 2015/16 2016/17 2016/17 AMOUNT PERCENTAGE AMOUNT PERCENTAGE 0 0.0 0 0.0 5,000 100.0 8,000 100.0 0 0.0 0 0.0 5,000 100.0 8,000 100.0 The transfer from the general fund was increased to cover the deficit within the fund. 95 Alarm Board Revenue Budget Request 8 months FY 2016-2017 2016/17 2015/16 2015/16 Budget Difference Budget Actual Revenues: 3200 Interest Earned 28 3895 Alarm Board Revenue 153,000 153,000 100,789 Total Revenues 153,000 153,000 100,817 Expenditures: 5110 Contractual Services 27,950 32,050) 60,000 58,629 8300 Equipment I - I - I - I - Total Expenditures 1 27,950 1 (32,050)1 60,000 1 58,629 Alarm Board Fund Purpose The purpose of the Alarm Board Fund is to pay for the maintenance of the radios as well as the annual maintenance of the head end equipment in the city dispatch center. This equipment comprises the city's direct connect radio fire alarm monitoring network. City businesses are required by ordinance to have fire alarm monitoring and this monitoring is to be directly connected to the city dispatch center. Fund Highlights --> The city currently has 141 radios that are monitored monthly. The radios are billed quarterly at $90/month. Budget Summary ALARM BOARD REVENUE FUND BUDGET SUMMARY 8 month 2014/15 2015/16 2015/16 2016/17 INCREASE ACTUAL BUDGET ACTUAL BUDGET DECREASE) EXPENDITURES SUPPLIES $56,555 60,000 58,629 27,950 32,050) CAPITAL 0 0 0 0 0 TOTAL $56,555 60,000 58,629 27,950 32,050) 2015/16 2015/16 2016/17 2016/17 AMOUNT PERCENTAGE AMOUNT PERCENTAGE FUNDING SOURCE INTEREST EARNINGS 0 0.0 0 0.0 ALARM BOARD REV 153,000 0.0 153,000 100.0 TOTAL 153,000 0.0 153,000 100.0 Budget Highlights Contractual expenses decrease $32,050 due to the expiration of the agreement with McHenry Township Fire Protection District to refund a portion of alarm board revenues received. 97 Audit Fund (230) Budget Request 8 month FY 2016-2017 2016/17 2015/16 2015/16 Budget Difference Budget Actual Revenues: 3010 Property Tax Collections 26,426 1) 26,427 26,410 3200 Interest Earnings 5 3970 Charges for Services 7,703 3978 Transfer - Water Sewer Fund 8,215 161 8,054 3976 Transfer - Police Pension Fund 3,570 70 3,500 Total Revenues 38,211 230 37,981 34,118 Expenditures: Audit Expense 37,104 724 36,380 36,380 Total Expenditures 37,104 724 1 36,3801 36,380 KI Audit Fund Purpose The purpose of the Audit Fund to account for the expenses incurred to complete the annual audit of the City's financial statements. Fund Highlights -> The State of Illinois requires that the City of McHenry conduct an independent audit on an annual basis. In turn, the statutes provide authority for an entity to levy a 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 the audit is deposited into a separate fund and kept segregated from the general corporate levy receipts. There is no limit on the property tax rate used to meet the cost of the required audit. Budget Summary AUDIT FUND BUDGET SUMMARY 8 months 2014/15 2015/16 2015/16 2016/17 INCREASE ACTUAL BUDGET ACTUAL BUDGET DECREASE) EXPENDITURES CONTRACTUAL $35,710 35,710 35,710 37,104 1,394 TOTAL $35,710 35,710 35,710 37,104 1,394 2015/16 2015/16 2016/17 2016/17 AMOUNT PERCENTAGE AMOUNT PERCENTAGE FUNDING SOURCE PROPERTY TAX REVENUES 26,426 70.0 26,426 69.2 PURCHASE SERVICE - POLICE PENSION 3,500 9.3 3,570 9.3 PURCHASE SERVICE - WATER/SEWER 8,054 21.3 8,215 21.5 TOTAL 37,980 100.6 38,211 100.0 Budget Highlights The audit examination fee for FY 2015/16 (which is paid in FY2016/17) is estimated at a 2% increase over the FY2014/15 audit fees. The City Council will have to approve a new contract with the auditing firm for the FY2015/16 audit. The internal service charges to the Water/Sewer Fund have been adjusted accordingly. The Police Pension Fund audit fee for FY2015/16 is estimated at $3,570, which is fully covered by the Police Pension Fund transfer. we Annexation Fund (260) Budget Request FY 2016-2017 8 Months 2016/17 2015/16 2015/16 Budget Difference Budget Actual Revenues: 3210 Interest Earned 200 200 42 3745 Gravel Mining Income 40,000 40,000 72,834 3720 Operating Fees 10,000 10,000 3715 Annexation Income 8,000 8,000 18,346 Total Revenues 58,200 58,200 91,222 Expenditures: 6970-90 Distributions Operating Fees 10,000 10,000 9904 Transfer to Debt Service 35,000 35,000 23,333 9942 Transfer to Capital Impvmt. Fund I - I- Total Expenditures 45,000 1 - 1 45,000 23,333 100 Annexation Fund Purpose The purpose of the Annexation Fund is to segregate funds received from negotiated annexation agreements that are intended to be used for improvements to infrastructure or City facilities. Fund Highlights 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. The City collects about $1,000 per acre for residential property up to five acres in size plus approximately $600 per unit upon issuance of a building permit. The additional per unit fee is assessed and distributed to the two area school districts and the fire and library districts. As revenues in this fund do not necessarily represent recurring income, the City Council annually reviews how the proceeds of this fund are allocated. Annexation Fund revenues are determined by a mixture of recurring and one-time, non -recurring sources. Gravel mining fees, a recurring revenue resulting from an annexation agreement with Meyer Material, generates approximately $40,000 annually. Annexation income varies depending on the agreement and comes in the form of a lump sum payment based on a per acre charge and periodic payments as building permits are issued for each unit. The fund collects an annexation fee specifically to offset the added costs associated with growth in school districts 415 and #156 and the Library and Fire Protection districts. These fees, designated as operating fees, are distributed to the other taxing bodies based on the terms of annexation agreements. Budget Summary ANNEXATION FUND BUDGET SUMMARY 8 months 2014/15 2015/16 2015/16 2016/17 INCREASE ACTUAL BUDGET ACTUAL BUDGET DECREASE) EXPENDITURES OTHER 43,820 45,000 23,333 45,000 0 TOTAL 43, 820 45,000 23, 333 45,000 0 2015/16 2015/16 2016/17 2016117 AMOUNT PERCENTAGE AMOUNT PERCENTAGE FUNDING SOURCE INTEREST EARNINGS 200 0.3 200 0.3 GRAVEUMINING INCOME 40,000 68.7 40,000 68.7 ANNEXATION FEES 18,000 30.9 18,000 30.9 TOTAL 58,200 100.0 58,200 100.0 Budget Highlights No significant changes. 101 Motor Fuel Tax Fund (270) Budget Request 8 months FY 2016-2017 2016/17 2015/16 2015/16 Budget Difference Budget Actual Revenues: 3210 Interest Earned 200 200 171 3150 Allotments from State 677,229 34,819 642,410 499,376 3180 Grants - Illinois First Program 39,844 3975 Transfer - General Fund 3999 Transfer- Other Funds 3890 Miscellaneous Total Revenues 677,429 1 34,819 642,610 539,391 Expenditures: 6110 Materials and Supplies 305,000 305,000 31,262 8600 Streets 555,300 446,350) 1,001,650 223,162 9904 Transfer - Debt Service Fund 398,641 1,621) 400,262 266,841 9942 Transfer - Capital Improvements Fund Total Expenditures 1,258,941 447,971) 1,706,912 521,265 102 Motor Fuel Tax Fund Purpose The purpose of the Motor Fuel Tax Fund is to provide dedicated revenues from taxes on gasoline and diesel sales primarily to road improvements and road maintenance. Fund Highlights—> Motor fuel taxes are generated by a flat rate of cents per gallon, 19.0 for gasoline and 21.5 for diesel fuel, plus a sales tax transfer. With the Illinois First program adopted by the State in 1999 to fund infrastructure, roads, schools and transit programs, the sales tax transfer was eliminated in April of 2000 and certain vehicle registration fees replaced and supplemented this shared state revenue. On a net basis, it is expected that the City will receive an additional 18% in revenues after,all phases of the program are implemented. Based upon the annual requirements, funds are used to finance certain road projects. In addition, the City purchases road salt for snow and ice control from this fund on an annual basis. Budget Summary MOTOR FUEL TAX FUND BUDGET SUMMARY 8 month 2014/15 2015/16 2015/16 2016117 INCREASE ACTUAL BUDGET ACTUAL BUDGET DECREASE) EXPENDITURES SUPPLIES 246,681 305,000 31,262 305,000 0 OTHER 403,659 400,262 266,841 398,641 1,621) CAPITAL 161,833 1,001,650 223,162 555,300 446,350) TOTAL 812,173 1,706,912 521,265 1,258,941 447,971) 2015/16 2015/16 2016117 2016/17 AMOUNT PERCENTAGE AMOUNT PERCENTAGE FUNDING SOURCE INTEREST EARNINGS 200 0.0 200 0.0 OTHER 0 0.0 0 0.0 MOTOR FUEL TAX (STATE) 642,410 100.0 677,229 100.0 TOTAL 642,610 100.0 677,429 100.0 Budget Highlights Debt service on the 2010 bond issue to fund the streets improvement program is $398,641 due in FY 2016/17. This bond is a mixture of Recovery Zone and Build America bonds, which allows the City to get a partial rebate on the interest paid from the federal government. MFT revenues include $25.09 per capita in regular revenue and the special allotment of $120,000 awarded through the Illinois Jobs Now program ended in FY14-15. The budget includes $555,300 in streets projects. 103 Motor Fuel Tax Fund Capital Projects Motor Fuel Tax Fund Recommended Projects Fiscal Year 2016/17 Amount IL 120 & 31 Intersection Improv. Construction 55,000 Crystal Lake Road Improv. (Phase III Engineering & Construction) 263,400 McCullom Lake Road (Phase III Engineering & Construction) 10,000 Bull Valley Road Improvements (Phase II Engineering) 44,400 Ringwood Road (Phase I & II Engineering) 5,000 Pearl St./Lincoln Road (Phase I & II Engineering) 175,000 Curran Road (Phase I engineering) 2,500 Total Recommended Projects $555,300 104 Developer Donation Fund (280) Budget Request 8 month FY 2016-2017 2016/17 2015/16 2015/16 Budget Difference Budget Actual Revenues: 3210 Interest Earnings 3775 Collected for Schools 33,000 33,000 64,625 3785 Collected for Library 4,770 4,770 17,996 3790 Collected for Fire District 4,770 4,770 13,832 Total Revenues 42,540 42,540 96,453 Expenditures: 6970 Payments to Schools 33,000 33,000 50,088 6980 Payments to Library 4,770 4,770 10,290 6990 Payments to Fire Protection District 4,770 4,770 17,924 Total Expenditures 42,540 42,540 78,302 Developer Donation Fund -Parks (28).41) Budget Request 8 month FY 2016-2017 2016/17 2015/16 2015/16 Budget Difference Budget Actual Revenues: 3210 Interest Earnings 1,000 1,000 145 3780 Collected for Parks 54,000 54,000 165,788 3845 Rental Income 36,150 36,150 36,126 3180 Grants 3815 Donations 3882 Reimb - Misc 3890 Miscellaneous Income Total Revenues 91,150 91,150 202,059 Expenditures: 6940 Administrative Expenses 14,200 14,200 11,250 8100 Land Acquisition 150,000 100,000 50,000 8800 Park Improvements 20,000 72,000) 92,000 34,660 9902 Transfer - Rec Center Construction Fund 9942 Transfer - Capital Improvements Fund I Total Expenditures 184,200 28,000 156,200 1 45,910 105 Developer Donation Fund Purpose The purpose of 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 City's parks system. Fund Highlights --> Developer donations are collected to ensure the provision of public facilities to serve new development by requiring each new development to pay its fair share of the costs of such improvements as a condition of approval. By City ordinance, anyone applying for a building permit for a residential unit will be required to pay for school, park, fire protection, and library district purposes a cash contribution per each residential dwelling unit to be constructed. The amount of the donation per residential unit is as follows: The park's portion of the Developer Donations is used to collect cash in lieu of land donations. The City has determined that the land donation requirement shall be 1.5 acres of parkland per 100 projected population based upon the 1996 Illinois School Consulting Service table of estimated ultimate population per dwelling unit. As a basis to collect cash in lieu of land donations, the fair market value of an improved acre of land is $107,586. Proceeds of the donations for parks are intended for the development of recreational opportunities in connection with the new development. Developer Donation revenues are budgeted based on historical trends and existing developments that provide the potential for building activity. However, if revenues fall short of projected levels, expenditures are adjusted accordingly. Of the amount collected for schools, 65% goes to the primary school district and the remaining 35% is provided to the secondary school district. Budget Summary DEVELOPER DONATIONS BUDGET SUMMARY 8 month 2014/15 2015/16 2015/16 2016/17 INCREASE ACTUAL BUDGET ACTUAL BUDGET DECREASE) EXPENDITURES OTHER 111,268 $42,540 78,302 42,540 0 TOTAL 111,268 $42,540 78,302 42,540 0 2015/16 2015/16 2016/17 2016/17 AMOUNT PERCENTAGE AMOUNT PERCENTAGE FUNDING SOURCE INTEREST EARNINGS 0 0.0 0 0.0 DEVELOPER DONATIONS 42,540 100.0 42,540 100.0 TOTAL 42,540 100.0 42,540 100.0 106 Developer Donation Fund DEVELOPER DONATIONS (PARK DONATIONS) BUDGET SUMMARY 8 month 2014/15 2015/16 2015/16 2016/17 INCREASE ACTUAL BUDGET ACTUAL BUDGET DECREASE) EXPENDITURES OTHER $10,974 14,200 11,250 14,200 0 CAPITAL 232,076 142,000 34,660 170,000 28,000 TOTAL $243,050 156,200 45,910 184,200 28,000 2015/16 2015/16 2016/17 2016/17 AMOUNT PERCENTAGE AMOUNT PERCENTAGE FUNDING SOURCE INTEREST EARNINGS $1,000 1.1 1,000 1.1 PARK DONATIONS 90,150 98.9 901150 98.9 TOTAL $91,150 100.0 91,150 100.0 Budget Highlights Due to the limited growth in the number of building permits, developer donation revenue is expected remain unchanged from the prior year. Capital expenses were budgeted at $170,000 for FYI 6/17. Capital Items Park Improvements Developer Donations (Parks) 2016/17 Description Amount ADA Park Improvements - rebudget $20,000 Miller Riverfront Boat Ramp $150,000 Total $170,000 107 Tax Increment Fund (290) Budget Request 8 months FY 2016-2017 2016/17 2015/16 2015/16 Budget Difference Budget Actual Revenues: 3010 Property Taxes 325,000 325,000 314,911 3910 Bond Proceeds 3975 Transfer from General Fund 3810 Donations 3180 Grant 3890 Miscellaneous Income 1,000 1,000 1,000 3200 Interest Total Revenues 326,000 326,000 315,911 Expenditures: 5110 Contractual Services 10,149 6940 Administrative Expense 62,000 62,000 56,771 9901 Transfer to General Fund 2,500 2,500 1,667 9904 Transfer to Debt Service 221,435 18,160) 239,595 159,730 8900 Capital - Public Improvements 20,000 20,000 Total Expenditures 305,935 1 (18,160)1 324,095 1 228,317 108 Tax Increment Finance Fund Purpose The purpose of the Tax Increment Finance (TIF) District is revitalizing the City's downtown area through investment from both the private and public sectors. Fund Highlights —> In 2002, the City Council established the City of McHenry TIF. The TIF District encompasses the area between John Street on the south and the Fox River on the east, Third Street on the west, and Pearl and Broad Street on the north. The primary intent of creating the district was to revitalize the downtown with a primary focus of generating funds to construct a Riverwalk. Revenue for the district is generated by the collection of property taxes each year at an increment based on the increase in assessed valuation of properties within the area since the district was created. The excess tax revenue collected can only be used to fund projects located within the district. 2016/17 Goals and Objectives Continue to aggressively work on encouraging additional development and redevelopment projects in the TIF District. Partner with private commercial real estate broker/agent to market the Miller Point property for redevelopment. Budget Summary TAX INCREMENT FINANCING FUND BUDGET SUMMARY 8 months 2014/15 2015116 2015/16 2016/17 INCREASE ACTUAL BUDGET ACTUAL BUDGET DECREASE) EXPENDITURES CONTRACTUAL 3,021 0 10,149 0 0 OTHER 304,540 304,095 218,168 285,935 18,160) CAPITAL 318,071 20,000 0 20,000 0 TOTAL 625,632 324,095 228,317 305,935 18,160) 2015116 2015/16 2016/17 2016/17 AMOUNT PERCENTAGE AMOUNT PERCENTAGE FUNDING SOURCE PROPERTY TAX REVENUES 325,000 99.7 325,000 99.7 BOND PROCEEDS 0 0.0 0 0.0 OTHER 1,000 0.3 1,000 0.3 INTEREST EARNINGS 0 0.0 0 0.0 GRANTS 0 0.0 0 0.0 TOTAL 326,000 100.0 326,000 100.0 Budget Highlights Property tax revenues generated by the TIF are expected to remain flat due to a relatively flat EAV. 109 HEART OF THE FOX RIVER CAPITAL PROJECTS & DEBT SERVICE FUNDS Recreation Center Fund (400.00) Special Service Area (SSA) #4A (424.00) Capital Improvements Fund (440.00) Capital Equipment Fund (450.00) Debt Service Fund (300.00) 110 Recreation Center Construction Fund (400) Budget Request FY16-17 Budget 8 month 2016/17 2015/16 2015/16 Budget Difference Budget Actual Revenues: 3200 Interest Earned 2,000 2,000 885 3632 Concessions 800 800 3641 Babysitting 6,000 6,000 3642 Room Rentals 12,500 12,500 3643 Birthday Parties 4,500 4,500 3644 Sponsorship/Advertisement 7,500 7,500 3780 Transfer from Park Donations 3910 Bond Proceeds 2,015,000 3965 Premium on Bonds Payable 3,588 Total Revenues 33,300 31,300 2,000 2,019,473 Expenditures: 4010 Salaries 67,200 67,200 4050 Overtime 4110 Salaries -Seasonal 4130 Salaries - Front Desk Attendants 20,650 20,650 4135 Salaries - Front Desk Lead/Coordinator 14,025 14,025 4140 Salaries - Childcare Attendants 17,400 17,400 4145 Salaries - Rental Attendants 1,900 1,900 4190 Salary Adjustment 4310 Health/Vision 22,583 22,583 4320 Dental Insurance 999 999 4330 Life Insurance 69 69 4340 Insurance Premiums Vision 57 57 4410 FICA Medicare 9,328 9,328 4420 IMRF Retirement 9,072 9,072 4510 Uniform Allowance 2,500 2,500 Total Personnel 165,783 165,783 5110 Contractual 3,000 3,000 5200 Contract Custodial 32,000 32,000 5210 Marketing & Advertising 8,000 8,000 5215 Retention/Promotion 3,000 3,000 1,699 5320 Telephone 1,500 1,500 5321 Cable/TV 2,400 2,400 5375 Equipment Repairs 4,000 4,000 5510 Electric, Gas Utility 28,000 28,000 5600 Credit Card/Bank Fees 6,000 6,000 Total Contractual 87,900 87,900 1,699 6110 Building Supplies 3,500 3,500 6111 Custodial Supplies 15,000 15,000 6120 Childcare Supplies 1,000 1,000 6130 Safety Supplies 300 300 6141 Office Furniture/Equipment 6210 Office & Tech Supplies 3,000 3,000 1,253 Total Supplies 22,800 22,800 1,253 7400 Bond Issuance Costs 7,902 9901 Transfer -General Fund 80,000) 80,000 9904 Transfer - Debt Service Fund 132,356 132,356 Total Other 132,356 52,356 80,000 7,902 8200 Capital - Buildings 425,000 4,375,000) 4,800,000 3,067,844 8300 Equipment 141,418 Total Capital 425,000 4,375,000) 4,800,000 3,209,262 Total Expenditures 833,839 4,046,161) 4,880,000 3,220,116 111 Recreation Center Construction Fund (400) Budget Request FY16-17 Budget Fitness Revenues 3645 Annual Membership 407,700 407,700 3646 Short -Term Membership 20,000 20,000 3647 Daily Admissions 10,800 10,800 3648 Punch Passes 3,000 3,000 3649 Misc Fees 1,000 1,000 3650 Fitness Classes -Session Based 5,000 5,000 3651 Small Group Personal Training 8,000 000 3652 Personal Training 13,500 500 469,000TotalRevenues469,0 00 Fitness Expenses 40.4160 Personal Trainers 4,000 4,000 40.4165 Orientation/Consultations 2,500 2,500 40.4170 Group Exercise Instructors 62,200 62,200 40.4175 Fitness Program Instructors 7,800 7,800 40.4180 Facility Attendants 17,200 17,200 40.4410 FICA 7,168 7,168 Total Personnel 100,868 100,868 40.5110 Contractual Services 4,500 4,500 40.5375 Equipment Repair 1,000 1,000 Total Contractual 5,500 5,500 40.6110 Fitness Supplies 6,000 6,000 40.6142 Fitness Equipment 1,200 1,200 2,382 Total Supplies 7,200 7,200 2,382 Total Expenses 113,568 113,568 2,382 112 Recreation Center Construction Fund Purpose Recognizing leisure activities, facilities, and open spaces are important to individuals, families, and community life, 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. Fund Highlights —> The City Council has long discussed the feasibility of constructing and operating a community recreation center. Growing recreation programs and athletic leagues have outgrown existing facilities that are leased and borrowed from other public entities and private organizations. Many of the school facilities in which the City's Parks and Recreation Department provide recreation programs are becoming unavailable to the City since school programs and enrollments are growing and the facilities are required for school sponsored programs. 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 Construction 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. Likewise, the expenditure of funds for the construction of the facility would be taken from the fund. Beginning in 2013, the City Council began the process for analyzing the feasibility for the construction of a combined family -oriented aquatics facility and the first phase of a recreation facility. While a combined facility was not deemed financially feasible at this time, Council directed staff to undertake a process for proceeding with the first phase of a recreation facility to focus on the fitness and group fitness space, multi -use rooms, and Parks and Recreation office space. In 2014 the City Council approved the retention of FGM Architects and HR Green to undertake engineering and facility planning and design. In March of 2015, council approved a contract for construction of the recreation center with Stuckey Construction Co., Inc., which will allow construction to begin in late spring or early summer. 2015/16 Accomplishments The Recreation Center construction began in April of 2015 and proceeded without delay. The 18,200 square foot center opened for business on February 291h and membership has surpassed 1,000 at the end March. A Recreation Center Manager was hired in September to finalize a great deal of processes associated with the daily operation of the center, as well as select equipment and hire part time staff. In June the city reclassified the Athletics position during the hiring process to fill the vacancy from a retirement of a long time employee. The position was transitioned to Athletics and Aquatic Supervisor reflecting the addition of the pool and beach responsibilities with the position. In February of 2016, the recreation side of the department was reorganized. The Recreation Center Manager was tasked with the supervision of the Athletics and Aquatics Supervisor and the Recreation Supervisor. The Recreation Center Manager will report directly to the Deputy City Administrator. 2016/17 Goals and Objectives Analyze the operations of the recreation center and finalize an updated Master Site Plan for the facility. 113 Recreation Center Construction Fund Construct the bike path additions in conjunction with the Recreation Center project. Cooperate with other community organizations and provide services for community special events. For the Recreation Center, establish a baseline number for measuring and tracking key performance metrics including: pass sales, member retention, pass member visits, class participation. Make the Recreation Center financially solvent by exceeding 1200 pass sales and monitoring other revenue sources and expenditures. Budnet Summa RECREATION CONSTRUCTION FUND BUDGET SUMMARY 2014/15 2015/16 2015/16 2016/17 INCREASE ACTUAL BUDGET ACTUAL BUDGET DECREASE) EXPENDITURES PERSONNELCOSTS 0 0 0 266,651 266,651 CONTRACTUAL 0 0 1,699 93,400 93,400 SUPPLIES 0 0 3,635 30,000 30,000 CAPITAL 348,101 4,800,000 3,209,262 425,000 4,375,000) OTHER 0 0 7,902 132,356 132,356 TOTAL 348,101 4,800,000 3,222,498 947,407 3,852,593) 2015/16 2015/16 2016/17 2016/17 AMOUNT PERCENTAGE AMOUNT PERCENTAGE FUNDING SOURCE TRANSFER - PARK DONATIONS 0 0.0 0 0.0 CHARGES FOR SERVICES 0 0.0 33,300 6.6 FITNESS CENTER REVENUES 0 0.0 469,000 93.0 INTERESTEARN INGS 2,000 100.0 2,000 0.4 TOTAL 2,000 100.0 504,300 100.0 Budget Highlights Now that the recreation center is fully open for business expenses to run the center are budgeted as well as revenues for memberships as well as other charges for the center. Other expenses include debt service costs for the $2.015 million bond issue to help fund the construction. Capital of $425,000 is rebudgeted to finish payments for design and construction of the facility. 114 Recreation Center Construction Fund Personnel Personnel Schedule 2015/16 Budget 2016/17 Budget Change Dollars Numberof Dollars Number of Dollars Numberof Salaries Grade Budgeted Employees Budgeted Employees Budgeted Employees Recreation Center Manager 0 0.00 67,200 1.00 67,200 1.00 Seasonal/Program Instructors 0 53,975 53,975 Fitness - Part-time Staff 0 93,700 93,700 FICA/Medicare 0 16,496 16,496 IMRF 0 9,072 9,072 Health/Vision 0 22,640 22,640 Dental 0 999 999 Life Insurance 0 69 69 Uniform Allowance 0 2,500 2,500 Subtotal 0 266,651 51,776 0 $266,651 $51,776 115 Special Service Area #4 (424) Budget Request 8 months FY2016-17 2016/17 2015/16 2015/16 Budget Difference AgEet Actual Revenues: 3010 Property Tax Collections 16,847 0 16,847 16,847 3200 Interest Income 0 0 0 1 Total Revenues 16,847 0 16,847 16,848 Expenditures: 9936 Transfer Utility Improvements Fund 16,847 0 16,847 11,231 Total Expenditures 16,847 0 16,847 11,231 116 Special Service Area #4A Purpose The purpose of Special Service Area (SSA) #4A Fund is to account for revenues and expenses associated with annual debt service for the sewer project in the Lakewood Road Subdivision. Fund Highlights —> In July of 2003, the City of McHenry created a special service area to recover 75% of the costs of the sewer project in the Lakewood Road Subdivision. A low-pressure sewer main was installed in 2004 on Lakewood Road at the request of the 25 residents in the subdivision. The residents agreed to the establishment of the SSA as a funding mechanism to pay for the project. The creation of SSA #4A allows the City to levy a property tax on the property within the defined special service area. The annual debt requirement is spread equally among the 25 lots rather than by the assessed value of each property. The SSA was established for a period of 20 years for the purpose of recovering 75% of the costs of the project, in additional to adding the required capital development and sewer connection fees. The City paid for the remaining 25% of the project. The total amount to be repaid by the property owners in the SSA is approximately $327,200. This includes the amounts for the sewer main, capital development and sewer connection fees less the City's share of $87,800. Budget Summary SPECIAL SERVICE AREA #4 (LAKEWOOD SEWERS) BUDGET SUMMARY 8 months 2014/15 2015/16 2015/16 2016/17 INCREASE ACTUAL BUDGET ACTUAL BUDGET DECREASE) EXPENDITURES OTHER 16,847 $16,847 11,231 16,847 0 TOTAL 16,847 $16,847 11,231 16,847 0 2015/16 2015/16 2016/17 2016/17 AMOUNT PERCENTAGE AMOUNT PERCENTAGE FUNDING SOURCE PROPERTY TAX 16,847 100.0 16,847 100.0 TOTAL 16,847 100.0 16,847 100.0 Budget Highlights Annual revenues are budgeted at $16,847 based on an assessment per land parcel that is not to exceed $723.41. 117 Capital Improvements Fund (440) & Local Street Improvements Fund (441) Budget Request 8 month 2016/17 2016/17 2015/16 2015/16 Budget Difference Budget Actual Revenues: 3180 Grants 32101nterest 1,000 1,000 248 3760 Developer Contribution 197,700) 197,700 3765 Developer Donations 3815 Private Donations 3882 Reimb. Miscellaneous 270,000 270,000 171,741 3886 Reimb - State 3910 Bond Proceeds 3965 Premium on Bonds Payable 3971 Transfer - Annexation Fund 3975 Transfer - Gen Fund 2,381,459 1,318,959 1,062,500 708,333 3978 Transfer W/S Fund 3986 Transfer - MFT Fund 3999 Transfer Other Funds 3983 Transfer - Park Donations Total Revenues 2,652,459 1,391,259 1,261,200 880,322 Expenditures: 5110 Contractual Services 6110 Materials & Supplies 7400 Bond Issuance Cost 8100 Capital - Land Acquisition 8200 Capital - Building Improvements 1,250,000 1,085,000 165,000 27,425 8500 Capital - Utility System Improvements 8600 Capital - Street Improvements 2,527,500 1,772,500 755,000 222,908 8800 Capital - Park Improvements 197,500 112,500 85,000 90,445 8900 Capital - Other Improvements 235,480 212,020) 447,500 9909 Transfer - MFT 9901 Transfer - General Fund Total Expenditures 4,210,480 2,757,980 1,452,500 340,778 118 Capital Improvements Fund Purpose The purpose of the Capital Improvements Fund is to provide community facilities and services through a planned program of infrastructure replacements and additions. Fund Highlights—> The Fund serves as the source of annual expenditures related to the City's five-year Capital Improvements Program. The program is developed by setting priorities for infrastructure repair, replacement, and expansion of various facilities. Budget Summary CAPITAL IMPROVEMENTS FUND BUDGET SUMMARY 8 months 2014/15 2015/16 2015/16 2016/17 INCREASE BUDGET BUDGET ACTUAL BUDGET DECREASE) EXPENDITURES TOTAL 932,100 1,452,500 340,778 4,210,480 3,869,702 TOTAL 932,100 1,452,500 340,778 4,210,480 3,869,702 2015/16 2015/16 2016/17 2016117 AMOUNT PERCENTAGE AMOUNT PERCENTAGE FUNDING SOURCE INTEREST EARNINGS 1,000 0.1 1,000 0.0 DEVELOPER CONTRIBUTION 197,700 8.7 0 0.0 GRANTS 0 0.0 0 0.0 BOND PROCEEDS 0 0.0 0 0.0 PRIVATE DONATIONS 0 0.0 270,000 10.2 TRANSFER - ANNEXATION FUND 0 0.0 0 0.0 TRANSFER -GENERAL FUND 1,062,500 46.7 2,381,459 89.8 TRANSFER - MFT 0 0.0 0 0.0 TRANSFER-W/S 0 0.0 0 0.0 TRANSFER OTHER FUNDS 0 0.0 0 0.0 TRANSFER - PARK DONATIONS 0 0.0 0 0.0 TOTAL 1,261,200 55.5 2,652,459 100.0 Budget Highlights The FY 2016/17 budget includes three items that are rebudgeted because the projects were not finished as of the close of FY2015/ 16. These include the Dartmoor/Crystal Lake traffic signal for 160,480, the municipal center improvements for $80,000 and park improvements for $85,000. This budget also includes $2,000,000 for a street program as well as $100,000 for cracksealing. There will also be park, parking lots, and sidewalk improvements made for a total of $217,500. These projects will be covered by a transfer from the general fund as well as funds from the Capital Improvements Fund and General Fund Fund balance. Additions to the dispatch center will also be completed for $900,000 119 Capital Improvements Fund Capital Improvements Fund Recommended Projects Fiscal Year 2015116 Amount Dartmoor/Crystal Lake Road Signal - rebudget 160,480 Municipal Center Improvements - rebudget 80,000 Park Improvements - rebudget 85,000 Public Works Facility Improvements 270,000 Street Program 2,000,000 Bull Valley/Curran Road 320,000 Cracksealing 100,000 Sidewalks 75,000 Curran S-Curve 2,500 Dispatch Renovations 900,000 ADA Park Improvements 20,000 Parking Lot Improvements 30,000 Merkel Aquatic Center Improvements 10,000 Sport Court Renovations 27,500 Petersen Farm Improvements 20,000 Petersen Park Improvements 35,000 Riverwalk Seawall 75,000 Total Recommended Projects 4,210,480 120 Capital Equipment Fund (450) Budget Request 8 months 2016/17 2016/17 2015/16 2015/16 Budget Difference Budget Actual Revenues: 3210 Interest 64 3975 Transfer - Gen Fund 243,225) 243,225 185,217 3978 Transfer W/S Fund Total Revenues 243,225) 243,225 185,281 Expenditures: 8300 Capital - Equipment 288,500 225,775 62,725 212,742 8400 1 Capital - Vehicles 190,800 9,700)1 200,500 30,485 Total Expenditures 479,300 1 216,075 1 263,225 243,227 121 Capital Equipment Fund Purpose The purpose of the Capital Equipment Fund is to provide for equipment through a planned program of infrastructure replacements and additions. Fund Highlights--> The Fund serves as the source of annual expenditures related to the City's five-year Capital Improvements Program. The program is developed by setting priorities for equipment replacement. Budget Summary CAPITAL EQUIPMENT FUND BUDGET SUMMARY 8 month 2014/15 2015/16 2015/16 2016/17 BUDGET BUDGET ACTUAL BUDGET EXPENDITURES CAPITAL $503,521 277,825 96,683 479,300 TOTAL $503,521 277,825 96,683 479,300 2015/16 2015/16 2016/17 AMOUNT PERCENTAGE AMOUNT FUNDING SOURCE INTEREST EARNINGS 0 0.0 0 FUND BALANCE 0 0.0 479,300 TRANSFER - GENERAL FUND 277,825 100.0 0 TOTAL TRANSFER-W/S 0 0.0 0 277,825 100.0 479,306 Budget Highlights Capital Equipment Fund Recommended Projects Fiscal Year 2016/17 INCREASE 201,475 201,475 2016/17 PERCENTAGE 0.0 100.0 0.0 0.0 100.0 Department Amount Police Vehicles PD 105,800 Police Vehicle Equipment PD 43,500 Streets - Vehicle Replacement STS 35,000 Streets - Equipment Replacement STS 245,000 Parks Vehicle Parks 50,000 Total Recommended Projects 479,300 122 Debt Service Fund (300) Budget Request 8 month FY 2016-17 2016/17 2015/16 2015/16 Budget Difference Budget Actual Revenues: 3210 Interest Earnings 150 150 8 3220 CD Interest 3910 Bond Proceeds 4,360,000 3915 Bond Interest Rebate 31,119 4,270) 35,389 17,966 3966 Premium on Refunding 42,507 3985 Transfer from SSA #1A 3971 Transfer from Annexation Fund 35,000 35,000 23,333 3972 Transfer from Rec Center Fund 132,356 132,356 3975 Transfer from General Fund 726,318 3,641) 729,959 486,640 3986 Transfer from MFT Fund 398,641 2,105) 400,746 266,841 3969 Transfer from TIF 221,435 18,160) 239,595 159,730 3978 Transfer from Water 96,647 6,154) 102,801 68,534 3978 Transfer from Sewer 12,283 782) 13,065 8,710 Total Revenues 1,653,949 97,244 1,556,705 5,434,269 Expenditures: 7100 Bond Principal Payments 1,395,000 160,000 1,235,000 50,000 7200 Bond Interest Payments 253,799 62,756) 316,555 212,040 7300 Paying Agent Fees 5,000 5,000 18,865 7500 Bond Refunding 4,295,000 Total Expenditures 1,653,799 97,244 1,556,555 4,575,905 123 Debt Service Fund Purpose The purpose of the Debt Service Fund is to account for bonded indebtedness incurred by the City's General Fund, including all bond and interest payments. Fund Highlights—> The Debt Service Fund is a non -operating budgetary unit. It does not provide direct service to the public and is utilized for internal purposes only. Debt service payments (both principal and interest) are paid from this fund. In turn, the General Fund, Tax Increment Finance Fund, and the Motor Fuel Tax (MFT) Fund transfer adequate funds to the Debt Service Fund for debt service payments. At the present time, there are five outstanding bonds for which the Debt Service Fund provides the principal and interest payments. In 2010, refunding bonds of $2.03 million were issued to retire the 2002 Alternate GO Bonds that were used to fund drainage improvements. This saved the City approximately $110,000. Series 2010B GO Bonds, principal value of $3,510,000, have been issued to cover future road improvements. MFT funds will be used to cover these expenses. In FY2012/13 the City issued $3,100,000 in GO Bonds. $850,000 was to cover roof and HVAC repairs at the Public Works facility, $2,250,000 was to cover rehabilitation at Water Treatment Plant 42. In 2013, refunding bonds of $1.985 million were issued to retire the 2005 Alternate GO Bonds that were used to fund drainage and sewer improvements. This saved the City approximately $100,000. In addition to the refunding, $415,000 in new money was issued to cover additional repairs to the roof and HVAC system at the Public Works facility. In 2015, refunding bonds of $4.360 million were issued to retire the 2006 Alternate GO Bonds that were used to pay for the constructions of Phase I of the McHenry Riverwalk as well as the 2007 Alternate GO Bonds to fund the purchase of a Public Works building. In addition to the refunding, $2.015 million in new money was issued to pay for the construction of the Recreation Center. The City's current bond rating is Aa2 by Moody's Investor Services. 124 Debt Service Fund Budget Summary EXPENDITURES OTHER TOTAL DEBT SERVICE FUND BUDGET SUMMARY 8 month 2014/15 2015/16 2015/16 2016/17 INCREASE ACTUAL BUDGET ACTUAL BUDGET DECREASE) 1,566,868 $1,556,555 1,566,868 1,653,799 97,244 1,566,868 $1,556,555 1,566,868 1,653,799 97,244 FUNDING SOURCE TRANSFER -GENERAL FUND TRANSFER - SSA #1A FUND TRANSFER - MFT FUND TRANSFER - TIF FUND TRANSFER - RECREATION CENTER FUND TRANSFER - WATER/SEWER TRANSFER -ANNEXATION FUND BOND INTEREST REBATE INTEREST EARNINGS 2015/16 2015/16 2016/17 2016/17 AMOUNT PERCENTAGE AMOUNT PERCENTAGE 729,959 46.9 726,318 43.9 0 0.0 0 0.0 400,746 25.7 398,641 24.1 239,595 15.4 221,435 13.4 0 0.0 132,356 8.0 115,866 7.4 108,930 6.6 35,000 2.2 35,000 2.1 35,389 2.3 31,119 1.9 150 0.0 150 0.0 1,556,705 100.0 1,653,949 100.0 Budget Highlights In FY 11/12 through FY16/17, the City transferred $35,000 from the Annexation Fund to cover a portion of the debt service for the bonds used to purchase the Public Works Facility. 125 HEART OF THE FOX RIVERY ENTERPRISE FUNDS Public Works - Water (510.31) Public Works - Wastewater (510.32) Public Works - Utility Division (510.35) Capital Development Fund (550.32) Utility Improvements Fund (580.31) Marina Operations Fund (590.00) 126 Doug Mace Water Operator II Nv PUBLIC WORKS -WATER Chris Sandoz Maintenance Worker Bryan Scheel Water Operator II FY16-17 Water/Sewer Fund Budget FY16-17 Budget FY15-16 FY15-16 Budget Change Budget 8 month Actual Water 3610 Water Sales 2,427,359 260,074 2,167,285 1,375,034 3615 Capital Fees 135,000 135,000 3620 Penalties 55,000 3,000 52,000 38,069 3640 Meter Sales 8,000 8,000 8,800 3210 Interest Income 2,000 2,000 1,323 Miscellaneous Income 60,200 601200 66,596 3630 Water Hookup Fees 6,000 6,000 8,000 Total Water Fund Revenues 2,693,559 398,074 2,295,485 1,497,822 4010 Salaries 384,454 61,147 323,307 376,914 4050 Overtime 24,000 10,000 14,000 24,313 4190 Salary Adjustment 9,582 5,568 4,014 4110 Salaries - Seasonal 11,500 11,500 10,047 4310 Health Insurance 119,786 14,853 104,933 128,339 4320 Dental Insurance 957 587)1 1,544 1,492 4330 Life Insurance 380 69 311 251 4340 Vision Insurance 86 56 30 33 4410 FICA Medicare 32,860 5,869 26,991 33,310 4420 IMRF Retirement 56,435 10,357 46,078 64,861 4510 Uniform Allowance 2,025 475 1,550 1,099 Total Personnel 642,065 107,807 534,258 640,659 5110 Contractual Services 145,000 24,780 120,220 49,618 5310 Postage & Meter 4,500 1,000 3,500 2,707 5320 Telephone 5,000 1,500 3,500 3,076 5370 Repr & Maint-Vehicles 3,500 3,500 5,523 5410 Dues 500 500 319 5430 Training Expense 2,500 2,250) 4,750 1,667 5440 Tuition Reimbursement 5450 Publications 5510 Utilities 125,000 40,000) 165,000 81,172 Total Contractual 286,000 14,970) 300,970 144,082 6110 Materials & Supplies 140,000 20,000 120,000 155,457 6210 Office Supplies 650 650 284 6250 Gasoline & Oil 8,000 4,000) 12,000 23,657 6270 Small Tools 1,250 1,250 497 6940 Administrative Expenses 1,402 Total Supplies 149,900 16,000 133,900 181,297 9000 Amortization Bond Issuance 9100 Amortization Bond Discount 7100 Principal Payment 95,000 95,000 7200 Interest Payment 46,308 1,900) 48,208 50,108 7300 Fees - Paying Agent 311 9510 Depreciation Expense 500,000 500,000 9904 Transfer - Debt Service 96,647 6,154) 102,801 63,962 9920 Pur Sery - Risk Mgt 67,455 5,719) 73,174 48,783 9921 Pur Sery -Gen Fund 222,018 3,281 218,737 145,825 9922 PurSery - IT Fund 16,142 935 15,207 8,063 9923 PurSery - Audit 4,108 81 4,027 2,636 9930 Transfer-Water/Sewer Fund 851,063 186,241 664,822 9936 Transfer -Utility Imp Fund 9946 Trans. -Cap. Equip. Fund Total Other 1,898,741 176,765 1,721,976 319,688 8200 Capital - Improvements 8300 Capital - Equipment 8400 Capital - Vehicles 8500 Capital - Utility System Imp Total Capital Total Water Expenses 2,976,706 2,691,104 1,285,726 Public Works — Water Division Mission Statement The City of McHenry Water Division's first order of responsibility is to provide a safe and reliable supply of high quality potable water. The water produced must meet or exceed all federal and state health standards. An unyielding commitment to this mission will continue to provide a high level of customer service to the consumer and ensures public safety to the community. Primary Functions —> The primary functions of the Water Division are the following: Providing safe potable water that meets or exceeds State and Federal Drinking Water Regulations. Water Production — The Division maintains four iron removal filtration treatment plants served by eight active wells. The City has two emergency or backup wells that have no iron removal filtration but do have temporary chemical feed buildings. Water Storage consists of four elevated water storage tanks with a combined storage capacity of 2,750,000 gallons. One booster pumping station. Water metering provides meter readings to the Finance Department for utility billing and maintains an ongoing meter replacement program of approximately 7,500 water meters. Respond to Joint Utility Locate Information for Excavators (J.U.L.I.E.) requests. Respond to consumer inquiries regarding water quality or high consumption questions or general concerns. 2015/16 Accomplishments Met or exceeded all State and Federal Drinking water regulations. Upheld the high level of customer service City residents and businesses have come to expect. Have transitioned to independent divisions with respect to the formation of the Utility Division. Worked closely with the Utility to facilitate this transition and maintained a high level of customer service. Expect to receive a 201h consecutive annual fluoride award from the Illinois Department of Public Health. Responded to over 4000 J.U.L.I.E. locate requests After the implementation of new billing software in 15/16 the reinstitution of the meter change out program began. Assisted the USEPA in completing the South River Rd Watermain Extension. 2016/2017 Goals and Objectives Continue to meet or exceed all Federal and State drinking water regulations. Solicit bids for the repainting of Tower #3 located east of the river in the Adam's Industrial Park. Complete project in 2016. Complete Water Treatment Plant #4,exterior building maintenance Reinstitute Well inspection/Maintenance/Repair A major focus will be on the meter change out program, despite limited man power availability. 129 Public Works — Water Division Justify one additional employee in the Water Division. Budget Summary PUBLIC WORKS DEPARTMENT - WATER DIVISION BUDGET SUMMARY 8 month 2014/15 2015/16 2015/16 2016/17 INCREASE ACTUAL BUDGET ACTUAL BUDGET DECREASE) EXPENDITURES PERSONNEL 1,036,413 534,258 332,983 642,065 107,807 CONTRACTUAL 277,485 300,970 185,060 286,000 14,970) SUPPLIES 249,503 133,900 92,820 149,900 16,000 OTHER 924,241 1,721,976 743,595 1,898,741 176,765 CAPITAL EXPENDITURES 0 0 10,025 0 0 TOTAL 2,487,642 2,691,104 1,364,483 2,976,706 285,602 INCREASE PERSONNEL AUTHORIZATION 2013114 2014/15 2015/16 2016/17 (DECREASE) TOTAL 9.50 9.50 4.50 4.50 0.00 FUNDING SOURCE WATER SALES CAPITAL FEES PENALTIES METER SALES INTEREST INCOME MISCELLANEOUS INCOME WATER HOOK UP FEES TOTAL Budget Highlights 2015/16 2015/16 2016/17 2016/17 BUDGET PERCENTAGE BUDGET PERCENTAGE 2,167,285 94.4 2,427,359 90.1 0 0.0 135,000 5.0 52,000 2.3 55,000 2.0 8,000 0.3 8,000 0.3 2,000 0.1 2,000 0.1 60,200 2.6 60,200 2.2 6,000 0.3 6,000 0.2 2,295,485 100.0 2,693,559 100.0 Personnel expenses increase due to the addition of one employee as well as for the bargaining union contract costs, non -bargaining unit merit -based increases and retirement and insurance costs. Contractual expenses decrease due to lower utility costs. Supplies expenses increase due to the purchase of additional replacement water meters. Other expenses increase due to a transfer of revenue to cover the Utility Division expenses. Transfers for Utility Improvement Fund and Capital Equipment Fund have been eliminated for the fiscal year. 130 Public Works - Water Division Fixed Assets Fixed assets in 2016/17 for the Water Division total $988,000. Water Fund Recommended Projects 2016/17 Fiscal Year Total 2015/16 Project Treatment Plant #4 Maintenance 58,000 58,000 Well Inspection, Maintenance, Repair 45,000 45,000 Water Tower Maintenance 300,000 300,000 Bull Valley Water Project 585,000 585,000 Total 988,000 988,000 Personnel Review Salaries Water Superintendent Plumbing Inspector Water Operator II Water Maintenance Worker Part-time (Seasonal) Overtime Sickday Payback Incentive Longevity Bonus Salary Adjustment IMRF Retirement FICA/Medicare Health Dental Life Insurance Uniform Allowance Subtotal Public Works Department - Wa Personnel Schedule 2015/16 Budget 2016/17 Budget Change Dollars Number of Dollars Number of Dollars Number of Grade Budgeted Employees Budgeted Employees Budgeted Employees 12 88,031 1.00 90,452 1.00 2,421 0.00 6 33,448 0.50 34,201 0.50 753 0.00 U-E 138,597 2.00 146,474 2.00 7,877 0.00 U-C 62,116 1.00 112,160 2.00 50,044 1.00 11,500 11,500 0 14,000 24,000 10,000 1,115 1,167 52 0 0 0 4,014 9,582 5,568 352,821 4.50 429,536 5.50 76,71 1.00 46,078 26,991 104,933 1,544 30 311 1,550 181,437 534,258 56,435 32,860 119,786 957 86 380 2,025 212,529 642, 065 10,357 5,869 14,853 587) 56 69 475 31,092 107,807 131 PUBLIC WORKS -WASTE WATER w N Jeff Lisafeld Daniel Duffy Mechanic I f Wastewater Operator II John Kuhl Wastewater Operator II Bryan Thome Wastewater Operator II Russell Adams Wastewater Operator II FY16-17 Water/Sewer Fund Budget FY16-17 Budget FY15-16 FY15-16 Budget Change Budget 8 month Actual Sewer 3610 Sewer Sales 2,706,376 111,576 2,594,800 1,656,270 3615 Capital Fees 260,000 3620 Penalties 56,000 56,000 42,030 3630 Sewer Connections 8,000 8,000 7,750 3210 Interest Income 2,000 2,000 1,323 3660 Debt Service Fee 1,251,000 850,000 401,000 266,443 3890 Miscellaneous Income 81,048 81,048 16,661 Total Sewer Fund Revenues 4,364,424 1,221,576 3,142,848 1,990,477 4010 Salaries 524,639 22,197 502,442 364,086 4110 seasonal Employees 5,000 5,000 2,265 4050 Overtime 40,000 40,000 24,748 4190 Salary Adjustment 13,078 2,270 10,808 4310 Health/Vision 108,233 11,948) 120,181 128.312 4320 Dental Insurance 842 8 834 523 4330 Life Insurance 483 483 264 4340 Vision Insurance 136 2) 138 89 4410 FICA Medicare 44,578 1,872 42,706 32,343 4420 IMRF Retirement 77,992 3,303 74,689 56,607 4510 Uniform Allowance 3,000 1 300 2,700 2,645 Total Personnel 817,981 18,000 799,981 611,882 5110 Contractual Services 181,000 18,000) 199,000 126,308 5310 Postage & Meter 2,000 2,000 294 5320 Telephone 5,000 6,000) 11,000 2,094 5370 Repr & Maint-Vehicles 5,000 5,000 15,586 5375 Repr & Maint-Equip 70,000 12,500) 82,500 89,000 5380 Repr & Maint-System 91,000 66,000 25,000 50,442 5410 Dues 400 400 594 5430 Training 750 750 765 5440 Tuition Reimbursement 1,000 1,000 5450 Publications 100 100 5510 Utilities 300,000 115,000) 415,000 179,080 5580 Sludge Disposal 1 193,160 1 2,000 191,160 131,495 Total Contractual 849,410 83,500) 932,910 595,658 6110 Materials & Supplies 214,000 214,000 134,567 6210 Office Supplies 1,000 1,000 876 6250 Gasoline & Oil 20,000 20,000 22,497 Total Supplies 235,000 235,000 157,940 9000 Amoritzation-Bond Issuance 9100 Amoritzation-Bond Discount 6940 Administrative Expense 1,880 7091 Debt Service - Accrued Interest 7100 Bond Principal 250,000 5,000 245,000 7200 Bond Interest 195,813 5,512) 201,325 205,790 7300 Fees - Paying Agent 1,100 1,100 1,053 7450 Bond Discount Expense 9510 Depreciation Expense 1,200,000 100,000 1,100,000 9904 Transfer to Debt Service Fund 12,283 782) 13,065 8,129 9920 Purch Sery - Risk Mgt 67,455 20,521) 87,976 58,651 9921 Purch Sery- Gen Fund 236,686 3,498 233,188 155,459 9922 Purch Serv- Info Tech 12,231 481 11,750 5,848 9923 PurchSery -Audit 4,108 81 4,027 2,636 9930 Transfer-Water/Sewer Fund 619,873 238,710 381,163 9936 Transfer -Utility Imp Fund 1,720,340 1,720,340 9939 Marina Fund Transfer 9942 Transfer CIF Total Other 4,319,889 2,041,295 2,278,594 439,446 8200 Capital - Building Improvements 241,168 8300 Capital - Equipment 8400 Capital - Vehicles 8500 Capital - Utility Improvements 1,550 Total Capital 242,718 Total 6,222,280 1,975,795 6,485 2,047,644 Public Works Department — Wastewater Division Mission Statement 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. Primary Functions -> The primary functions of the Wastewater Division are the following: Provides for the operation and maintenance of two wastewater treatment plants and the care and upkeep of 18 lift stations. Maintain records on the amount of wastewater treated and the quality of water discharged to the Fox River and report this information to the Illinois Environmental Protection Agency in compliance with NPDES permits. FY 2015/16 Accomplishments The Fieldstone Avenue lift station was upgraded with new pumps and controls. The project was included in the 2015/2016 CIP and finished up under the budgeted amount. The designs of the treatment plant consolidation and force main project were finalized. The project went out to bid and the treatment plant construction portion was awarded to Williams Brothers Construction of Peoria. Ground breaking on the consolidation project began in late 2015 and is expected to take 2 years to complete. The force main portion of the project went out to bid in February 2016. The awarding of the contract is expected in March 2016. The Wastewater Division treated more than 1.2 billion gallons of wastewater in 2015. 2016/2017 Goals and Objectives Continue to meet or exceed the NPDES permit requirements and regulations as set forth by the Illinois Environmental Protection Agency. Maximize the performance of both treatment plants in an effort to operate as efficient as possible. Continue to investigate ways to operate the treatment plants in the most cost effective manner. Implementation of the 2016/17 Capital Improvement Program which includes the following project: Expansion/consolidation of the SWWTP/CWWTP. The project consists of overseeing the expansion and upgrading of the SWWTP and construction of a new 4.0 MGD treatment plant adjacent to the current SWWTP. The second component of the project is the force main portion. This pipeline will connect the two treatment plants. 134 Public Works Department — Wastewater Division Budget Summary PUBLIC WORKS DEPARTMENT -WASTEWATER DIVISION BUDGET SUMMARY 2014/15 2015/16 ACTUAL BUDGET EXPENDITURES PERSONNEL 1,008,859 799,981 CONTRACTUAL 875,536 932,910 SUPPLIES 264,065 235,000 OTHER 1,710,434 2,278,594 CAPITAL 3,908 0 TOTAL 3,862,802 4,246,485 PERSONNEL AUTHORIZATION 2013/14 2014/15 TOTAL 10.00 10.00 2015/16 BUDGET FUNDING SOURCE SEWER SALES 2,594,800 CAPITAL FEES 0 PENALTIES 56,000 SEWER CONNECTIONS 8,000 INTEREST INCOME 2,000 DEBT SERVICE FEE 401,000 MISC INCOME 81,048 TOTAL 3,142, 848 Budget Highlights 8 months 2015116 ACTUAL 2016/17 BUDGET INCREASE DECREASE) 488,738 817,981 18,000 468,103 849,410 83, 500) 129,362 235,000 0 590,730 4,319,889 2,041,295 10,025 0 0 1,686,958 6,222,280 1,975,795 INCREASE 2015/16 2016/17 (DECREASE) 7.00 7.00 0.00 2015/16 2016/17 2016/17 PERCENTAGE BUDGET PERCENTAGE 85.5 2,706,376 62.0 0.0 260,000 6.0 1.8 56,000 1.3 0.3 8,000 0.2 0.1 2,000 0.0 13.2 1,251,000 28.7 2.7 81,048 1.9 103.6 4.364.424 100.0 Personnel expenses increase for the bargaining union contract costs, non -bargaining unit merit - based increases and retirement and insurance costs. Other expenses increase $100,000 due to capital purchases that are budgeted through the depreciation line item. They also increase $238,710 to cover the Utility Division expenses. A transfer for $1,720,340 has also been budgeted in order to cover the expenses in the Utility Improvements Fund for the force main project. Fixed Assets Fixed assets in 2016/17 for the Sewer Division total $600,000. 135 Public Works Department - Wastewater Division Sewer Fund Recommended Projects 2016/17 Fiscal Year Total 2016/17 Project Sewer Div. Motor Pool $300,000 $300,000 Fieldstone Lift Station - rebudget $300,000 $330,000 Total $600, 000 $630, 000 Personnel Review Public Works Department - Wastewater Personnel Schedule 2015/16 Budget 2016/17 Budget Change Dollars Number of Dollars Number of Dollars Number of Salaries Grade Budgeted Employees Budgeted Employees Budgeted Employees Sewer Plant Superintendent 12 88,031 1.00 90,452 1.00 2,421 0.00 Asst. Sewer Plant Supt. 10 69,588 1.00 71,501 1.00 1,913 0.00 Wastewater Treatment Op II U-E 271,800 4.00 285,239 4.00 13,439 0.00 Wastewater Mechanic U-E 71,578 1.00 75,938 1.00 4,360 0.00 Wastewater Treatment Op I U-D 0 0.00 0 0.00 0 0.00 Seasonal Employees 5,000 5,000 0 overtime 40,000 40,000 0 Sickday Payback Incentive 1,445 1,509 64 Salary Adjustment 10,808 13,078 2,270 Longevty Bonus 0 0 0 Subtotal 558,250 7.00 582,717 7.00 24,467 0.00 Benefits IMRF Retirement 74,689 77,992 3,303 FICA/Medicare 42,706 44,578 1,872 Health 120,181 108,233 11, 948) Dental 834 842 8 Life Insurance 483 483 0 Vision 138 136 2) Uniform Allowance 2,700 3,000 300 Subtotal 241,731 235,264 6,467) Total $799,981 $817,981 $18,000 Note: E = Exempt; N = Non -Exempt; U = IUOE Local #150 Collective Bargaining Unit Position 136 Christopher Beranek Maintenance Worker Greg Oliver Maintenance Worker w PUBLIC WORKS -UTILITY David Fees Maintenance Worker Steve Ramirez Maintenance Worker Sean Johnson Maintenance Worker Todd Sasek Maintenance Worker Mike Lange Maintenance Worker Clint Greve Maintenance Worker FY16-17 Utility Fund Budget FY16-17 Budget FY15-16 FY15-16 Budget Change Budget 8 month Actual Utility 3978 Transfer - Water Fund 851,063 186,241 664,822 3978 Transfer - Sewer Fund 619,873 238,710 381,163 Total Sewer Fund Revenues 1,470,936 424,951 1,045,985 4010 Salaries 595,248 82,721 512,527 4050 Overtime 35,000 35,000 4110 Salaries - Seasonal 10,000 10,000 4190 Salary Adjustment 14,836 4,210 10,626 4310 Health/Vision 182,225 23,244 158,981 4320 Dental Insurance 999 30) 1,029 4330 Life Insurance 621 69 552 4340 Vision Insurance 7 13) 20 4410 FICA Medicare 50,114 7,415 42,699 4420 IMRF Retirement 87,086 11,735 75,351 4510 Uniform Allowance 3,750 600 3,150 Total Personnel 979,886 139,951 839,935 5110 Contractual Services 15,000 2,500) 17,500 5310 Postage & Meter 500 500 5320 Telephone 1,500 5,000) 6,500 5370 Repr & Maint-Vehicles 16,000 5,500 101500 5410 Dues 200 200 5430 Training 500 500 Total Contractual 33,700 2,000) 35,700 6110 Materials & Supplies 150,000 150,000 6210 Office Supplies 1,100 1,100 6250 Gasoline & Oil 15,000 3,000) 18,000 6270 Small Tools 1,250 1,250 Total Supplies 167,350 3,000) 170,350 9510 Depreciation Expense 3,700 3,700 Other 3,700 3,700Total 8200 Capital - Building Improvements 8300 Capital - Equipment 8400 Capital - Vehicles 8500 Capital - Utility Improvements Total Capital Total 1,184,636 138,651 1,045,985 100 Public Works — Utility Division Mission Statement The City of McHenry Utility Division's commitment is to provide the highest level of customer service to its residents and consumers. This includes the maintenance of the water distribution and sanitary sewer collection systems with a focus of enhancing public safety within the community. Primary Functions —> The primary functions of the Utility Division are the following: Clean, maintain and repair the sanitary collection system Maintain and repair water distribution system 2015/16 Accomplishments Changed out all remaining 2 port fire hydrants improving fire flow and ISO rating. Flush all of the City's fire hydrants for spring and fall hydrant flushing program. Cleaned and televised over a 148,000' (28 miles) of sanitary main including the subdivisions Whispering Oaks, Lakeland Shores, Pheasant Valley, Parkridge Estates, Trails of Winding Creek and Kresswood Trails and maintenance list. Repaired 12 water main breaks and 23 water services. Responded to 16 possible sewer backups. 2016/2017 Goals and Objectives Continue to keep the sanitary collection system well maintained and continue to clean and televise the entire collection system. Reduce inflow and infiltration in collection system through the implementation of the of the 2016/17 Capital Improvement Program which include the Oakwood Dr. sanitary sewer main rehabilitation, the sanitary sewer main rehabilitation program and the sanitary sewer rehabilitation program. Continue to keep distribution well maintained with water valve maintenance program and fire hydrant spring and fall flushing programs. Also through the implementation of the water main replacement program through the 2016/17 Capital Improvement Program Locate all missing B-Box's on GIS 139 Public Works — Utility Division Sunget Numma PUBLIC WORKS DEPARTMENT - UTILITY DIVISION BUDGET SUMMARY 8 month 2014/15 2015/16 2015116 2016/17 INCREASE ACTUAL BUDGET ACTUAL BUDGET DECREASE) EXPENDITURES PERSONNEL 23,700 839,935 515,835 979,886 139,951 CONTRACTUAL 740 35,700 20,011 33,700 2,000) SUPPLIES 4,551 170,350 77,548 167,350 3,000) OTHER 0 0 0 3,700 3,700 CAPITAL EXPENDITURES 0 0 0 0 0 TOTAL 28,991 1,045,985 613,394 1,184,636 138,651 INCREASE PERSONNEL AUTHORIZATION 2013/14 2014/15 2015/16 2016/17 DECREASE) TOTAL 0.00 0.00 8.00 8.00 0.00 2015/16 2015/16 2016/17 2016/17 BUDGET PERCENTAGE BUDGET PERCENTAGE FUNDING SOURCE WATER DEPARTMENT TRANSFER 664,822 63.6% 851,063 57.9% SEWER DEPARTMENT TRANSFER 381,163 36.4% 619,873 42.1% TOTAL 1,045,985 100% 1,470,936 100.0 Budget Highlights Personnel expenses increase due to an addition of an employee as well as for the bargaining union contract costs, non -bargaining unit merit -based increases and related retirement and insurance costs. Contractual and Supplies costs decrease slightly to better match actual spending Other expenses are budgeted at $3,700 due to depreciation expenses. Fixed Assets Fixed asset; in 2016/17 for the Division total $290,000. Utility Fund Recommended Projects 2016117 Fiscal Year Sanitary Sewer Main Rehab Water Main Replacement Sanitary Sewer Manhole Program Oakwood Drive Sanitary Sewer Main Total Total 2016/17 Project 110,000 110,000 100,000 100,000 50,000 50,000 30,000 30,000 290, 000 290, 000 140 Public Works - Utility Division Personnel Review Salaries Utility Superintendent Utility Operator I Utility Maintenance Worker Utility Meter Maintenance Worker Utilitv Maintenance Worker Sickday Payback Incentive Longevity Bonus Part -Time (Seasonal) Salary Adjustment IMRF Retirement FICA/Medicare Health Dental Life Insurance Uniform Allowance Subtotal Total Public Works Department - Util Personnel Schedule 2015/16 Budget 2016/17 Budget Change Dollars Number of Dollars Number of Dollars Number of Grade Budgeted Employees Budgeted Employees Budgeted Employees 12 82,170 1.00 84,431 1.00 2,261 0.00 U-E 141,448 2.00 144,276 2.00 2,828 0.00 U-C 111,780 2.00 117,952 2.00 6,172 0.00 U-C 0 0.00 0 0.00 0 0.00 U-C 175,361 3.00 246,754 4.00 71,393 1.00 35,000 35,000 0 1,768 1,835 67 0 0 0 0 10,000 10,626 14,836 4,210 558,153 8,00 655,084 9.00 86,931 1.00 75,351 42,699 158,981 1,029 20 552 3,150 281.782 839.935 87,086 50,114 182,225 999 7 621 3,750 324,802 979, 886 Note: E = Exempt; N = Non -Exempt; U = IUOE Local #150 Collective Bargaining Unit Position 11,735 7,415 23,244 30) 13) 69 600 43,020 129.951 141 FY16-17 Capital Development Fund Budget FY16-17 Budget FY15-16 FY15-16 Budget Change Budget 8 month Actual Capital Development Fund Revenues: 3200 Interest Earned 2,000 2,000 1,310 3630 Water Fees 80,000 80,000 76,925 3630 Sewer Fees 90,000 90,000 82,405 Total Revenues 172,000 172,000 160,640 Expenses: 9936 Utility Improvements Fund Transfer 1,195,910 1,195,910 Total Expenses 1,195,910 1 1,195,910 142 Capital Development Fund Purpose The purpose of the Capital Development Fund is to construct, expand and extend the water and wastewater systems to accommodate new development and growth in the community through the imposition of capital development fees on new residential and non-residential development. Fund Highlights —> Capital development fees are charged for new residential and non-residential development to ensure that adequate funds are available to provide a safe and adequate water supply and distribution system and an adequate wastewater treatment system in the City of McHenry. The impact of new development upon the City's infrastructure requirements, particularly wastewater treatment plant capacity, water pumping capacity, and water storage capacity, require the collection and accumulation of funds to provide a means of financing costly improvements to water and wastewater treatment facilities when existing capacity is exceeded. On each May 15` of each year, the residential and on -residential capital development fees are adjusted by the percentage change in the Engineering News Record Construction Cost Index subject to a review by the City Council. Budget Summary CAPITAL DEVELOPMENT FUND BUDGET SUMMARY 8 month 2014/15 2015/16 2015116 2016/17 INCREASE ACTUAL BUDGET ACTUAL BUDGET DECREASE) EXPENDITURES OTHER 0 $0 0 1,195,910 1,195,910 TOTAL 0 $0 0 1,195,910 1,195,910 2015/16 2015/16 2016/17 2011/12 AMOUNT PERCENTAGE AMOUNT PERCENTAGE FUNDING SOURCE INTEREST EARNINGS 2,000 1.6 2,000 1.2 CAPITAL DEVELOPMENT FEES 120,000 98.4 170,000 98.8 TOTAL 122,000 100.0 172,000 100.0 Budget Highlights Revenues are increased slightly due to past trends. Funds are budgeted to be transferred to the Utility Improvement Fund for the sewer force main project. 143 FY16-17 Utility Improvements Fund Budget FY16-17 Budget FY15-16 FY15-16 Budget Change Budget 8 month Actual Utility Improvements Funds Revenues: 3760 Developer Contribution 32001nterest 2,585 3910 Bond/Note Proceeds 3965 Premium on Bonds Payable 3978 Transfer from W/S Fund 1,720,340 1,720,340 3971 Transfer Annexation Fund 3994 Transfer SSA #4 16,847 16,847 11,231 3981 Transfer from Capital Development 1,195,910 1,195,910 Total Revenues 2,933,097 2,916,250 16,847 13,816 Expenses: 8500 Capital - Utility Improvement Projects 1,362,1912 Total Expenses 1,362,192 144 Utility Improvements Fund Purpose The Utility Improvements Fund is an enterprise fund used to account for capital projects that improve or expand the capacity of the Water and Wastewater utilities. Fund Highlights—> The Utility Improvements Fund was created to provide a single fund to record revenues and expenses for capital constructions projects for the Water and Wastewater utilities. Transfers from the Water/Sewer and Capital Development funds 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. 2015/16 Accomplishments Final design engineering on the South Wastewater Treatment Plant (SWWTP) expansion and the decommissioning of the Central Wastewater Treatment Plant (CWWTP) were finalized and continue to include the new technology that will snake McHenry a leader in wastewater treatment. The bid letting for the project was June 2°d, 2015, with a bid opening of July 20, 2015. Five (5) bids were received for the project with Williams Brothers being the lowest bid at $30,180,000. On August 171h 2015 City Council passed a motion to authorize the Mayor to sign a Notice of Intent to accept the bid and award the contract to Williams Brothers Construction, pending IEPA approval. The City received the Illinois Environmental Protection Agency (IEPA) construction permit on October 21", 2015. A pre -construction meeting was held with city staff, Williams Brothers and H.R. Green on October 30th, 2015. The SRF Loan paperwork arrived on November 51h, 2015. Williams Brothers started construction in December of 2015 with a completion of 2017. In addition to the construction at the Wastewater Treatment Plants; the McHenry Sanitary Sewer System Improvements Forcemain Extension which connects the CCWTP and the SWWTP was designed. On February 23`d, 2016 three bids were received with Merryman Excavation being the lowest bid at $2,916,249.50. 2016/17 Goals and Objectives Continue construction of the expansion at the South Wastewater Treatment Plant and construction of the Regional Pumping Station (RPS) at the Central Wastewater Treatment Plant Prepare demolition design and bid specifications for the decommissioning of the Central Wastewater Treatment Plant. Construction of the McHenry Sanitary Sewer System Improvements Forcemain Extension connecting the Central Wastewater Treatment Plant and the South Wastewater Treatment Plant. 145 Utility Improvements Fund Budget Summary EXPENDITURES CAPITAL UTILITY IMPROVEMENTS FUND BUDGET SUMMARY 8 month 2014/15 2015/16 2015/16 2016/17 INCREASE ACTUAL BUDGET ACTUAL BUDGET (DECREASE) 0 $0 $192,253 $0 $0 0 $0 $192,253 $0 $0 FUNDING SOURCE DEVELOPER CONTRIBUTIONS BOND PROCEEDS INTERGOVERNMENTAL REVENUES TRANSFER -ANNEXATION FUND TRANSFER - WATER/SEWER FUND TRANSFER - SSA #4 TRANSFER - CAPITAL DEVELOPMENT TOTAL 2015/16 2015116 2016/17 2016/17 AMOUNT PERCENTAGE AMOUNT PERCENTAGE 0 0.0 0 0.0 0 0.0 0 0.0 0 0.0 0 0.0 0 0.0 0 0.0 0 0.0 1,720,340 0.0 16,847 100.0 16,847 0.6 0 0.0 1,195, 910 40.8 16,847 100.0 2,933,097 41.3 Budget Highlights Actual expenditures in the fund are nominal because accounting standards require all water and wastewater projects to be recorded as assets that are eventually expensed as depreciation in the Water/Sewer Fund. Water and Sewer Improvement Projects Utility Improvements Fund Recommended Projects 2016/17 Fiscal Year Total 2016/17 Project Forcemain WWTP Consolidation $2,916,250 $2,916,250 Consolidation of CWWTP/SWWTP $15,000,000 $29,000,000 Total $17,916,250 $31,916,250 146 FY16-17 Marina Fund Budget FY16-17 Budget FY15-16 FY15-16 Budget Change Budget 8 month Actual Marina Fund Revenues: 3210 Interest Earnings 1,500 1,500 487 3845 Rental Income 50,000 50,000 30,435 Total Revenue 51,500 51,500 30,922 Expenses: 5110 Contractual 20,000 20,000 3,094 6940 Administrative Expenses 26,000 26,000 24,982 Total Expenses 46,000 46,000 28,076 147 Marina Operations Fund Purpose The Marina Operations Fund is an enterprise fund that maintains a 60-slip marina on the Fox River. Fund Highlights—> The City acquired the marina in 2000 because, at the time, the site was needed to expand the Central Wastewater Treatment Plant. After the property was acquired, it was determined that the wastewater treatment plan facility could not be expanded in the existing location. The marina site will be developed when the wastewater treatment plant is relocated. Budget Summary MARINA OPERATIONS FUND BUDGET SUMMARY 8 month 2014/15 2015/16 2015/16 2016/17 INCREASE ACTUAL BUDGET ACTUAL BUDGET (DECREASE) EXPENDITURES CONTRACTUAL $3,149 20,000 4,978 20,000 $0 OTHER 24,982 26,000 25,609 26,000 0 TOTAL $28,131 46,000 30,587 46,000 $0 2015/16 2015/16 2016/17 2016/17 AMOUNT PERCENTAGE AMOUNT PERCENTAGE FUNDING SOURCE RENTAL INCOME $50,000 97.1 50,000 97.1 INTEREST EARNINGS 1,500 2.9 1,500 2.9 TOTAL $51,500 100.0 51,500 100.0 Budget Highlights No significant changes. 148 E N 077, HEART OF THE FOX RIVER INTERNAL SERVICE FUNDS Employee Insurance Fund (600.00) Risk Management Fund (610.00) Information Technology Fund (620.00) 149 EMPLOYEE INSURANCE FUND (600) 2016/17 Budget 8 months 2016/17 2015/16 2015/16 Revenue Budget Difference Budget Actual 3210 Interest Earnings 3653 Elective Participant Premiums 166,889 33,666 133,223 92,432 3831 Employees Contribution 230,935 7,086 223,849 137,970 3975 Transfer - General Fund 2,281,987 191,094 2,090,893 1,324,784 3978 Transfer - Water/Sewer Fund 384,936 14,318 370,618 272,310 3999 Transfer - Other Funds 29,821 5,811) 35,632 16,270 Total Revenue 3,094,568 240,353 2,854,215 1,843,766 Expenditures 4310 Insurance Premiums - Health 2,848,087 243,117 2,604,970 1,887,461 4315 Insurance Premiums - Other 4320 Insurance Premiums - Dental 114,554 837) 115,391 81,873 4340 Insurance Premiums - Vision 12,683 357 12,326 6,909 5110 Contractual Services 5240 Claims 5245 Health HRA Reimbursement 112,000 112,000 32,408 6960 Miscellaneous Expense 5,000 5,000 1,470 Total Expenditures 3,092,324 242,637 2,849,687 2,010,121 150 Employee Insurance Fund Purpose The City of McHenry recognizes health insurance benefits are an important component of an employee's total compensation package, therefore, the purpose of the employee insurance find is to finance and account for expenditures incurred to provide health insurance benefits to the employees. Fund Highlights —> The current health insurance plan provided to employees offers a choice between a PPO (Preferred Provider Organization) and HMO (Health Maintenance Organization). Providing employees a choice in plan type allows employees some flexibility based on preference and affordability. In addition, employees receive dental and vision benefits that provide participants similar coverage to that provided under the previous self -insured health and dental plans. All Local 150 employees are required to be on the Union Insurance as per their union contract, which is paid 100% by the city. Budget Summary EMPLOYEE INSURANCE FUND BUDGET SUMMARY 8 month 2014115 2015/16 2015116 2016/17 INCREASE ACTUAL BUDGET ACTUAL BUDGET DECREASE) EXPENDITURES INSURANCE PREMIUMS 2,491,603 2,732,687 1,976,243 2,975,324 242,637 CLAIMS 93,391 112,000 32,408 112,000 0 MISCELLANEOUS EXPENSE 4,420 5,000 1,470 5,000 TOTAL 2,589,414 2,849,687 2,010,121 3,092,324 242,637 2015/16 2015/16 2016/17 2016/17 AMOUNT PERCENTAGE AMOUNT PERCENTAGE FUNDING SOURCE PREMIUMS/CONTRIBUTIONS 357,072 12.5 397,824 12.9 TRANSFERS - EMPLOYER SHARE 2,497,143 87.5 2,696,744 87.1 TOTAL 2,854,215 100.0 3,094,568 100.0 Budget Highlights Health and dental coverage is provided for approximately 94 existing employees and 13 individuals that are retirees or on disability. Approximately 36 employees represented by Local 150 are expected to elect to obtain coverage from their labor union, with the City paying for 100% of the coverage. For the 2015/16 budget year the frilly insured premiums have increased on average by 9.3%. Employee contributions have also been increased to help cover a portion of the large premium increase. The deficit that was in the Health Insurance Fund was completed eliminated as of the end of FY12/13. 151 Risk Management Fund (610) Budget Request FY 2015/16 8 months 2015/16 2014/15 2014/15 Budget Difference Budget Actual Revenues: 3200 Interest Earnings 200 200 98 3884 Reimb - Property Damage 43,223 3885 Property Damage Reimbursements 30,000 30,000 3970 Charges for Services 498,533 3975 Transfer from General Fund 538,284 40,021) 578,305 3978 Transfer from Water/Sewer Fund 152,600 8,550) 161,150 3999 Transfer from IT Fund 7,408 937) 8,345 3890 Misc. Income Total Revenues 728,492 49,508) 778,000 541,854 Expenditures: 5950 Insurance Premium - MCMRMA 625,000 13,129 611,871 585,072 5960 Insurance Premium - Other 2,500 2,500 12,423 5980 Property Damage 50,000 50,000 17,637 6940 Administrative Expense 4,250 4,250 745 6960 Misc. Expense 500 500 9921 Purchase of Service - GF 20,386 301 20,085 13,390 Total Expenditures 702,636 13,430 689,206 629,267 152 Risk Management Fund Purpose The purpose of the Risk Management Fund is to account for all activity related to risk management and insurance costs (other than employee health insurance) including loss control, loss prevention, risk transfer, and risk assessment. Fund Highlights--> The City of McHenry is exposed to various risks related to torts; theft of, damage to, and the destruction of assets; errors and omissions; injuries to employees; and natural disasters. The Insurance Fund funds the risk management program which attempts to limit the exposure to these risks and reduce the frequency and severity of losses. The City is a member of the McHenry County Municipal Risk 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 the MCMRMA executive board. The City is obligated to make all annual and supplementary contributions for MCMRMA, report claims and losses on a timely basis, cooperate with MCMRMA, claims adjusters and attorneys in claims investigation and settlement, and to follow risk management procedures as outlined by MCMRMA. MCMRMA is obligated to administer the self- insurance program as well as the purchased insurance program, provide risk management services including the defense and settlement of claims, and provide a loss prevention program to identify and reduce loss exposures. 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. 153 Risk ManaLyement Fund Budget Summary EXPENDITURES CONTRACTUAL OTHER TOTAL RISK MANAGEMENT FUND BUDGET SUMMARY 8 months 2014/15 2015/16 2015/16 2016/17 INCREASE ACTUAL BUDGET ACTUAL BUDGET DECREASE) 604,594 664,371 615,132 677,500 13,129 21,634 24,835 14,135 25,136 301 626,228 689,206 629,267 702,636 13,430 FUNDING SOURCE INTEREST EARNINGS PROPERTY DAMAGE REIMBURSEMENTS PURCHASE OF SERVICE - GENERAL FUND PURCHASE OF SERVICE -WATER/SEWER FUND PURCHASE OF SERVICE - IT FUND TOTAL 2015/16 2015/16 2016/17 AMOUNT PERCENTAGE AMOUNT 200 0.0 200 30,000 3.9 30,000 578,305 74.3 538,284 161,150 20.7 152,600 8,345 1.1 7,408 778,000 100.0 728,492 2016/17 PERCENTAGE Budget Highlights The budgeted amount for the insurance premium paid to MCMRMA increases slightly. 0.0 4.1 73.9 20.9 1.0 154 Information Technology Fund (620) FY 2016/17 Budget Line Item Sheet 8 month Budget Budget Actual Acct # 2016 17 Difference 2015 16 2015 16 4010 Salaries 140,201 3,517) 143,718 107,739 4090 Salary Adjustment 3,470 88) 3,558 4310 Health/Vision 26,450 6,114) 32,564 15,872 4320 Dental Insurance 1,059 235) 1,294 687 4330 Life Insurance 138 138 69 4340 Vision Insurance 125 3) 128 69 4410 FICA Medicare 10,991 276) 11,267 8,938 4420 IMRF Retirement 19,396 486) 19,882 15,605 4510 Uniform Allowance Total Personnel 201,830 10,719) 212,549 148,979 5110 Contractual Services 146,115 16,734 129,381 53,716 5320 Telephone 2,500 2,500 1,049 5410 Dues 500 100) 600 500 5420 Travel 700 375 325 430 5430 Training 5,900 5,900 5440 Tuition Reimbursement 5450 Publications Total Contractual 155,715 22,909 132,806 55,695 6110 Materials and Supplies 43,634 30,634 13,000 4,183 6210 Office Supplies 15,100 4,100) 19,200 9,247 6270 Small Equipment 42,100 11,900 30,200 17,791 Total Supplies 100,834 38,434 62,400 31,221 8300 Capital - Equipment 49,930 Total Capital 49,930 9920 Risk Management 7,408 937) 8,345 5,563 9510 Depreciation Expense 50,000 5,000 45,000 Total Other 57,408 4,063 53,345 5,563 Total 515,787 54,687 461,100 291,388 155 Information Technology Fund Mission Statement The mission of the Information Technology Department is to provide the most innovative, highest quality technology -based services, in a cost-effective manner, and to facilitate the achievement of goals and objectives of each of the City's departments. Primary Functions -> The primary functions of the Information Technology staff include the following: Provide effective technology support for computer systems, web -based applications, voice, video, and integrated data services to all City departments. Promote and facilitate the integration of technology to effectively meet the overall mission of the City using collaborative efforts through planning, training, and consulting with all departments and service providers. Develop, enhance, and manage the City's enterprise network to provide high speed, transparent, and highly functional connectivity to all resources. Develop and maintain highly effective, reliable, secure, and innovative information systems to support each department's functions. Facilitate the collection, storage, security, and integrity of electronic data while ensuring appropriate access Promote new uses of technology within the organization. 2015/16 Accomplishments Replaced Virtual Machine Host Servers and Attached Cluster Storage Successfully completed installation of new Host Servers and Cluster Storage. All virtual servers have been moved to the new system and the old servers and storage have been retired. Replacement of workstations (PCs) Every year we replace a portion of our PCs. We have over 100 PCs that we maintain. This year we replaced 12 PC's with new ones and repurposed 6 of the replacements for further use. The rest of the replaced PC's will be repurposed as needed or used as spares. Installation of infrastructure for Municipal Recreation Center Directional boring has been completed. Installation of TV, phone, computer cabling, fiber optic cable, security cameras, door locks, data switches, and equipment racks will be in place by the end of year 2015 or early 2016. Sufficient computers are available in the Parks and IT departments to equip the new facility. Implemented installations to provide complete wireless coverage in the Municipal Recreation Center to provide both a guest and employee network. Public Works Upgrades Changed microwave vendor and installed new equipment, which has eliminated ongoing communication problems with Public Works. Backup server at Public Works is functioning properly now. Installed security cameras. Implemented installations to provide complete wireless coverage in the Public Works Building to provide both a guest and employee network. City Hall Upgrades Configured existing wireless network to complete wireless coverage in the City Hall Building to provide both a guest and employee network. Rewired network switches so that each network switch now connects directly to the main switch in the upstairs Server Room. This alleviated some network latency issues. Website We are in the process of creating a new Website designed by GovOffice. They will also be hosting our new website. New Video Surveillance Storage Unit Purchased new NAS (Network Area Storage) in order to replace the current storage unit that has reached its end of life. 156 Information Technology Fund 2016/17 Goals and Objectives Upgrade Microsoft Office and Client Licensing This will allow the City of McHenry to utilize the latest versions of Microsoft Office and to allow us to upgrade our Server Operating Systems. Extend Current Network Extend our current in-house network, which includes City Hall and Public Works, to include the Parks Garage and South Wastewater Plant. Install and Create a functioning Microsoft SharePoint Environment This will provide the City and Police employees with an Intranet. Server Upgrades Upgrade our Server environment by replacing some old physical servers and converting others to our Virtual Environment. Computer Upgrades Replace approximately 1/3 of our current desktop computers and establish a 5 years hardware refresh rate thereafter. Network Upgrades Install a network monitoring system that will allow the IT Staff to take a more pro -active approach on troubleshooting. This will provide a single system to monitor the network. Replace current network switches in order to provide power to our new telephone system and to also improve network reliability. Budget Summary INFORMATION TECHNOLOGY FUND BUDGET SUMMARY 8 month 2014/15 2015/16 2015/16 2016/17 INCREASE ACTUAL BUDGET ACTUAL BUDGET DECREASE) EXPENDITURES PERSONNEL 218,958 212,549 218,958 201,830 10,719) CONTRACTUAL 89,014 132,806 89,014 155,715 22,909 SUPPLIES 55,022 62,400 55,022 100,834 38,434 CAPITAL EXPENDITURES 0 0 0 0 0 OTHER 46,638 53,345 46,638 57,408 4,063 TOTAL 409,632 461,100 409,632 515,787 50,624 INCREASE PERSONNEL AUTHORIZATION 2013/14 2014/15 2015/16 2016/17 DECREASE) TOTAL 2.00 2.00 2.00 2.00 0.00 2015/16 2015/16 2016/17 2016/17 AMOUNT PERCENTAGE AMOUNT PERCENTAGE FUNDING SOURCE PURCHASE SERVICE - GENERAL FUND 434,144 94.2 487,414 94.5 PURCHASE SERVICE - WATER/SEWER 26,957 5.8 28,373 5.5 TOTAL 461,101 100.0 515,787 100.0 157 Information Technology Fund Budget Highlights Personnel costs decrease due to restructuring the department. Contractual services increase $22,909 due to increased backup internet service and Comcast costs. Supplies expenses increase 38,434 due to increased Microsoft licensing costs. Other expenses increase due to depreciation expenses which are directly related to the purchase of capital. Fixed Assets The telephone system is budgeted to be upgraded in the amount of $74,800 for FYI 6/17. Personnel Review Information Technology Fund Personnel Schedule 2015/16 Budget 2016117 Budget Change Dollars Number of Dollars Number of Dollars Number of Salaries Grade Budgeted Employees Budgeted Employees Budgeted Employees IT Specialist 7 142,318 2.00 138,801 2.00 3,517) 0.00 Sickday Buyback Incentive 1,400 1,400 0 Salary Adjustment 3,558 3,470 88) Longevity Bonus 0 0 0 Total 147,276 2.00 143,671 2.00 3,605) 0.00 Benefits IMRF Retirement 19,882 19,396 486) FICA/Medicare 11,267 10,991 276) Health Vision 32,692 26,575 6,117) Dental 1,294 1,059 235) Life Insurance 138 138 0 Uniform Allowance 0 0 0 Subtotal 65,273 58,159 7,114) Total 212,549 201,830 10,719) 158 iISAMMOT", 3A HEART OF THE FOX RIVERY FIDUCIARY FUNDS Employee Flexible Spending Fund (700.00) Developmental Escrow Fund (720.00) Retained Personnel Fund (740.00) Police Pension Fund (760.00) 159 Employee Flexible Spending Fund (700) Budget Request 8 months FY 2016-17 2016/17 2015/16 2015/16 Budget Difference Budget Actual Revenues: 3200 Interest Earned 3831 Participant Contributions 85,000 5,000 80,000 60,018 3882 Reimb - Misc 1,058 Total Revenues 85,000 5,000 80,000 61,076 Expenditures: 6940 Administrative Expenses 5,000 5,000 1,920 6965 Medical Reimbursements 80,000 5,000 75,000 27,108 Total Expenditures 85,000 5,000 80,000 29,028 160 Employee Flexible Spending Fund Purpose It is the mission of the Employee Flexible Spending Fund (Flex Fund) to account for employee pre-tax medical spending accounts that are offered as a benefit to City employees. Fund Highlights —> Under Internal Revenue Service (IRS) rules and regulations, employees can set aside money for certain medical benefits on a pre-tax basis. These benefits include medical expenses not covered under the employee's health insurance plan. When allowable medical costs are paid by the employee, he or she can get reimbursed from his flexible spending account. Depending on the tax bracket of the employee and the extent of utilization, an employee could potentially save several hundred dollars through medical and dependent care flexible spending deductions. Budget Summary EMPLOYEE FLEXIBLE SPENDING HEALTH FUND BUDGET SUMMARY 8 months 2014/15 2015/16 2015/16 2016/17 INCREASE ACTUAL BUDGET ACTUAL BUDGET DECREASE) EXPENDITURES OTHER 89, 231 80, 000 29, 028 85, 000 5, 000 TOTAL 89, 231 80, 000 29, 028 85, 000 5, 000 2015/16 2015/16 2016/17 2016/17 AMOUNT PERCENTAGE AMOUNT PERCENTAGE FUNDING SOURCE INTEREST EARNINGS 0 0.0 0 0.0 PARTICIPANT CONTRIBUTIONS 80,000 100.0 85,000 100.0 TOTAL 80,000 100.0 85,000 100.0 Budget Highlights No significant changes. 161 Development Escrow Fund (720) Budget Request 8 months FY 2016-17 2016/17 2015/16 2015/16 Budget Difference Budget Actual Revenues: 3200 Interest Earned 500 500 206 3760 Received From Developers Total Revenues 500 500 206 Expenditures: 6961 Miscellaneous Refunds 9901 Transfer to General Fund 9999 Revenue/Exp Closing 9942 Transfer to Capital Imp Fund TotalExpenditures 162 Developmental Escrow Fund Purpose The purpose of the Development Escrow Fund is to segregate developer funds held by the City to ensure the completion of specific public improvements such as sidewalks and traffic signals. Fund Highlights The Developmental 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 Developmental 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 the results of operations. Budget Summary DEVELOPMENTAL ESCROW FUND BUDGET SUMMARY 8 months 2014/15 2015/16 2015/16 2016/17 INCREASE ACTUAL BUDGET ACTUAL BUDGET DECREASE) EXPENDITURES OTHER 0 0 0 0 0 CAPITAL 0 0 0 0 0 TOTAL 0 0 0 0 0 2015/16 2015/16 2016/17 2016/17 AMOUNT PERCENTAGE AMOUNT PERCENTAGE FUNDING SOURCE INTEREST EARNINGS 500 100.0 500 100.0 DEVELOPER DEPOSITS 0 0.0 0 0.0 TOTAL 500 100.0 500 100.0 Budget Highlights No significant changes. 163 Retained Personnel Fund (740) Budget Request 8 months FY 2016-17 2016/17 2015/16 2015/16 Budget Difference Budget Actual Revenues: 3210 Interest Earnings 3710 Engineering Inspection Fees - Public Works 3730 Engineering Inspection Fees - Consultant 50,000 30,000 20,000 48,890 3735 Legal Fees - Developers 15,000 5,000 10,000 12,045 3740 Developer Misc Fees 8,000 8,000 4,148 3750 Refunds - Developer 2,000 2,000 Total Revenues 75,000 35,000 40,000 65,083 Expenditures: 5220 Engineering Fees - Corporate 50,000 30,000 20,000 48,684 5221 Engineering Fees - Public Works 5230 Legal Fees - Corporate 15,000 5,000 10,000 11,683 6960 Misc Fees 8,000 8,000 3,997 6961 Miscellaneous Refunds 2,000 2,000 1 - Total Expenditures 75,000 35,000 40,000 1 64,364 164 Retained Personnel Fund Purpose The Retained Personnel Fund is used to account funds collected as reimbursement and expended for professional and technical services used to assist or advise the City in connection with land development. Fund Highlights The City's retained personnel costs include any engineering, attorney, planner, economist, or other technical profession retained to assist in connection with annexations, planning and zoning, and other development 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. Budget Summary EXPENDITURES CONTRACTUAL OTHER FUNDING SOURCE INTEREST EARNINGS FEES TOTAL Budget Highlights RETAINED PERSONNEL FUND BUDGET SUMMARY 2014/15 2015116 ACTUAL BUDGET 81,886 $30,000 6,926 10,000 88.812 $40.000 8 months 2015/16 2016/17 INCREASE ACTUAL BUDGET DECREASE) 60,367 65,000 35,000 3,997 10,000 0 64, 364 75, 000 35, 000 2015/16 2015/16 2016/17 2016/17 AMOUNT PERCENTAGE AMOUNT PERCENTAGE 0 0.0 $0 0.0 40,000 100.0 75,000 100.0 40,000 100.0 $75,000 100.0 Revenue and expense budgets were increased to better reflect actual spending. 165 Revolving Loan Fund (750) Budget Request 8 months FY 2016-17 2016/17 2015/16 2015/16 Budget Difference Budget Actual Revenues: 3210 Interest Earned 50 50 8 Loan Principal Loan Interest 1,500 1,500 410 Total Revenues 1,550 1,550 418 Expenditures: 9110 Approved Loans to Eligible Participants Total Expenditures 166 Revolving Loan Fund Purpose The purpose of the Revolving Loan Fund is to account for activity in the Revolving Loan Program, a low interest loan program for businesses and industry with the goal of job creation. Fund Highlights The Revolving Loan Program 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 an 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 tax and property tax base. The program requires loan applicants to complete a formal application, which is reviewed by the McHenry Revolving Loan Fund Review Committee. The committee, consisting of the Mayor and the Finance Committee of the McHenry City Council, reviews loan applications, meets with the applicant and a representative of the participating lending institution, visits the site if necessary, negotiates terms, length and security of loans, and evaluates requests with regard to compliance with the Revolving Loan Fund Program goals and objectives. Budget Summary REVOLVING LOAN FUND BUDGET SUMMARY 8 months 2014115 2015/16 2015/16 2016/17 INCREASE ACTUAL BUDGET ACTUAL BUDGET DECREASE) EXPENDITURES OTHER 0 $0 0 0 0 TOTAL 0 $0 0 0 0 2015/16 2015/16 2016/17 2016/17 AMOUNT PERCENTAGE AMOUNT PERCENTAGE FUNDING SOURCE INTEREST EARNINGS 50 3.2 50 2.4 LOAN PAYMENTS 1,500 96.8 2,000 97.6 TOTAL 1,550 100.0 2,050 100.0 Budget Highlights No significant changes. 167 Police Pension Fund (760) Budget Request FY 2016-17 8 months 2016/17 2015/16 2015/16 Budget Difference Budget Actual Revenues: 3110 Replacement Tax 3830 Employer Contributions 1,524,244 136,870 1,387,374 1,386,205 3200 Investment Earnings 750,000 270,000 480,000 26 3831 Employee Contributions 390,000 390,000 266,725 3836 Gain/Loss Sale 3837 Unrealized Gain/Loss 3838 Amortizatoin Expense 3882 Reimb - Misc Total Revenues 2,664,244 406,870 2,257,374 1,652,956 Expenditures: 4910 Pension Payments 1,411,040 28,431) 1,439,471 922,302 4920 Disability Payments 231,214 2,729 228,485 151,717 4930 Death Benefit Payments 184,000 68,394 115,606 105,212 4940 Non -Duty Disability Payments 17,512 17,512 11,675 4990 Reimbursement to Employees 5110 Contractual 45,000 45,000 34,752 5410 Dues 2,000 2,000 400 6940 Administration Expense 9923 Purch Service - Audit Fund 3,570 70 3,500 2,333 Total Expenditures 1,894,336 42,762 1,851,574 1,228,391 168 Police Pension Fund Purpose The purpose of the Police Pension Fund is to provide retirement benefits for retired police officers and their beneficiaries through employer and employee contributions and investment earnings. Fund Highlights-> The primary function 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 finds 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. Accounting and secretarial services are provided by the City at no cost to the plan. Financial planning and investment management are provided by outside vendors. The City's pension plan is a defined benefit plan meaning that regardless of investment performance, the plan is obligated to pay the defined benefit. If the pension plan makes unwise investment decisions, the City is currently obligated to guarantee the pension obligations. However, as of the year 2033, the pension plan will be self-supporting with no further obligations placed on the City. The City utilizes an independent actuarial study to annually determine the necessary funding for the pension program. The City will continue to fund the plans based upon the recommendations of the actuary. As of May 1, 2015, the date of the last completed Actuarial Valuation Report, the plan had 77 participants. Active police officer participants totaled 45 with an additional 21 retiree participants, 6 disabled participants and 3 surviving spouses and 2 terminated vested participant. Budget Summary POLICE PENSION FUND BUDGET SUMMARY 8 months 2014/15 2015/16 2015116 2016/17 INCREASE ACTUAL BUDGET ACTUAL BUDGET DECREASE) EXPENDITURES CONTRACTUAL 33,421 47,000 37,485 47,000 0 OTHER 1,872,180 1,804,574 1,190,906 1,847,336 42,762 TOTAL 1,905,601 1,851,574 1,228,391 1,894,336 42,762 2015/16 2015/16 2016/17 2016/17 AMOUNT PERCENTAGE AMOUNT PERCENTAGE FUNDING SOURCE PROPERTY TAX INVESTMENT EARNINGS 480,000 21.3 750,000 28.2 EMPLOYER CONTRIBUTIONS 1,387,374 61.5 1,524,244 57.2 EMPLOYEE CONTRIBUTIONS 390,000 17.3 390,000 14.6 TOTAL 2,257,374 100.0 2,664,244 100.0 169 Police Pension Fund Budget Highlights Many of the pensioners are entitled to a 3% wage increase effective January I" of every year. Employee contributions are directly related to the police department's wages, so the amount of contributions grows with wage increases. Employer contributions are funded by property taxes and are reflected by the 2015 levy. As of April 30, 2015 the funding percentage for the Police Pension Fund is at 52.9%, which is 0.4% higher than last year. 170 M Ak HEART OF THE FOX RIVER SUPPLEMENTAL INFORMATION Financial Policies Fund Balance and Reserve Policy Capital Improvement Program Financial Policy Investment Policy Community Profile Glossary of Terms 171 SUDDlemental Information Financial Policies The following City financial policies, along with the approved Fund Balance and Reserve, Investment and Capital Improvement Program policies, establish the framework for McHenry's overall fiscal planning and management. Operating Budget and Expense Policies 1. The city shall annually adopt a balanced budget where operating revenues are equal to, or exceed, operating expenditures in each fund. 2. Beginning fund balance should only be appropriated to the extent it supports non -recurring expenditures, replaces temporary declines in revenue, or is reasonably anticipated to be offset by an increase in revenue. 3. As part of the annual budget review process, the City will project General Fund revenues and expenditures for four years beyond the budget year and compare the projected balances to the fund balance policy. This will allow the City to identify potential problems early enough to correct them. 4. The City Council shall be provided monthly actual revenues and expenditures for all funds. Any departments or divisions projected to exceed their annual spending authority for the year shall work with the City Administrator to reduce expenses. This may include a deferral of hiring and major expenses for goods and services. Revenue Policies 1. The City shall maintain a diversified and stable revenue system to the extent provided by law to insulate it from short- term fluctuations in any one revenue source. 2. The City will not budget one-time revenue sources to fund annual operating expenditures. Such revenues will fund non -recurring activities, such as capital projects and major capital equipment purchases. 3. Grant revenues shall be pursued to provide or enhance City services. However, recurring activities shall be initiated with grant funds only if the activity can be terminated in the event grant funds are discontinued or the activity should and can be funded within recurring City revenues. 4. All non -enterprise user fees and charges will be examined annually to determine the direct and indirect cost of service recovery rate. The acceptable recovery rate and any associated changes to user fees and charges will be approved by the City Council. 5. The City will set fees and user charges for the Water and Sewer funds at a level that fully supports the total direct and indirect costs of the activity. Indirect costs include the replacement of the capital assets of the fund. Debt Management Policies 1. The City limits long-term debt to only those capital improvements that cannot be financed from current revenues and 172 Supplemental Information 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. 173 Supplemental Information Fund Balance and Reserve Policy Overview The purpose of this policy is to establish the principles and parameters to which a Fund Balance target will be defined at the beginning of each budget period. This policy is established to provide financial stability, cash flow for operations, and the assurance that the City will be able to respond to emergencies with fiscal strength. In the event that unexpected situations may cause the City to fall below the minimum fund balance level, certain steps will be followed to correct the deficiency, as outlined in the section below titled "Fund Balance Parameters." Definitions Fund Balance — The difference between assets and liabilities in a Governmental Fund. Net Position — The amount remaining after subtracting total liabilities from total assets for Proprietary Funds. Operating Expenditures — Total expenditures minus capital and debt service. Governmental Funds — Are used to account for all or most of the City's general activities, including the collection and disbursement of restricted or committed monies special revenue funds), the funds restricted, committed or assigned for the acquisition or construction of major capital assets (capital projects fund), and the funds restricted, committed or assigned for the servicing of general long-term debt (debt service funds). The general fund is used to account for all activities of the general government not accounted for in some other fund. o General Fund — Accounts for all activities of the City not accounted for in another fund. The General Corporate Fund is used to account for most of the day-to-day operations of the City, which are financed from tax revenues and other general revenues. Nine (9) separate activities are accounted for within the General Fund including: Administration, Elected Officials, Community & Economic Development, Finance Department, Police Commission, Police Department, Public Works -Administration, Public Works -Streets, and Parks and Recreation. o Special Revenue Funds — These funds are utilized to account for revenues derived from specific sources which are usually required by law or regulation to be accounted for as separate funds. For the City of McHenry these funds include the following funds, with definitions provided: 174 Supplemental Information 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. Pageant Fund — The purpose of the Pageant Fund is to account for revenues and expenditures used to conduct the annual Miss McHenry Pageant. Band Fund — The purpose of the Band Fund is to finance and account for expenditures incurred in the provision of summer concerts to promote culture and recreation to the community. Civil Defense Fund — The City Defense Fund is used to fund and account for activities related to the training of personnel and the purchase and maintenance of equipment to protect and defend the City from natural disasters or man-made environmental disasters through early warning and public notification systems. Alarm Board Fund — The purpose of this fund is to pay for the maintenance of radios, as well as the annual maintenance of the head - end equipment, in the City's dispatch center. Revenues are derived from the monitoring of business fire alarms, which are directly connected to the dispatch center. Audit Fund — The Audit Fund accounts for expenses incurred to complete the annual financial audit of the City. Annexation Fund — This fund tracks funds received from negotiated annexation agreements that are intended to be used for improvements to infrastructure or City facilities. Motor Fuel Tax Fund — The Motor Fuel Tax (MFT) Fund is to provide dedicated revenues from taxes on gasoline and diesel sales primarily to road maintenance and improvements. Developer Donation Fund — The purpose of this fund is to account for donations collected from developers on behalf of the primary and secondary school districts, fire protection district, and the City's park system. Tax Increment Finance Fund — The Tax Increment 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 175 Supplemental Information public improvements and/or as incentivization to spur additional private investment. o Capital Projects Fund — Capital Projects Fund is utilized to account for financial resources to be used for the acquisition or construction of capital facilities or other major fixed assets. The following funds are identified within the Capital Projects Fund: Recreation Center Construction Fund — The purpose of this fund is to, first, account for revenues and expenditures related to the construction of the recreation center facility; and, second, to account for capital expenditures specific to the completed recreation center facility. Special Service Area #4A — The SSA#4 Fund is utilized to account for revenues and expenses associated with annual debt service for the sewer project located in the Lakewood Road Subdivision. Capital Improvements Fund — The purpose of the Capital Improvements Fund is to account for funds identified for the maintenance and construction of public infrastructure projects other than water and sewer 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 5-Year Capital Improvement Program. o Debt Service Fund — The Debt Service Fund accounts for bonded indebtedness incurred by the City's General Fund, including bond and interest payments. Enterprise Funds — Enterprise Funds are business -type funds utilized to account for operations and activities that are financed and operated in a manner similar to a private business enterprise, and where the cost of providing goods and services to the general public on a continuing basis is expected to be recovered primarily through user charges. The City has also established Enterprise Funds when it was advantageous to segregate revenues earned and expenses incurred for an operation for purposes of capital maintenance, public policy, management control, or accountability. The following funds comprise the City's Enterprise Funds: o Water and Sewer Fund — The Water and Sewer Fund funds the operations of the Water, Wastewater and Utility Division of the Department of Public Works who's functions are to provide a safe and reliable supply of high quality 176 Supplemental Information 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 a city - 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. 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. 177 Supplemental Information o Retained Personnel Fund — The Retained Personnel Fund accounts for funds collected as reimbursement and expended for professional and technical services used to assist or advise the City in connection with land development. o Revolving Loan Fund — This fund accounts for activity in the Revolving Loan Program, a low -interest program for businesses and industry with the goal of job creation. o Police Pension Fund — Accounts for retirement benefits for retired police officers and their beneficiaries through employer and employee contributions and investment earnings. Governmental Fund Equity 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. 178 Supplemental Information Revenues reported within any given special revenue fund are considered "Committed" by the City Council in accordance with GASB Statement 54 and are intended to be used for the related purpose. Assigned — Amounts constrained, for the intent to be used for a specific purpose by the City Administrator and Finance Director Includes any remaining positive balances in governmental funds other than the General Fund) that is not classified in any other fund balance category A drawdown of the fund balance would be classified within this category Unassigned — Remainder of the General Fund's fund balance that is not classified in a previous category and amounts have not been expended in excess of resources available in other governmental funds Proprietary (Enterprise/Internal Service) Fund Equity Proprietary funds include Enterprise and Internal Service Funds. Expenses that can be attained from multiple fund classifications shall be used from the most to least restrictive fund. With the discretion of the Finance Director, and with the advice and consent of the Finance and Personnel Committee, a lesser restrictive net asset classification can be used if they determine that it is in the best interest of the City. The net assets will be composed of three primary categories: o Net Investment in Capital Assets — That portion of a proprietary fund's net assets that reflects the fund's net investment in capital assets less any amount of outstanding debt related to the purchase/acquisition of said capital assets. Related debt, for this purpose, includes the outstanding balances of any bonds, mortgages, notes, or other borrowings that are attributable to the acquisition, construction, or improvement of capital assets of the Government. o Restricted Net Assets — That portion of a proprietary fund's net assets that are subject to external enforceable legal restrictions (e.g., grantor, contributor and bond covenants). o Unrestricted Net Assets — That portion of a proprietary fund's net assets that is neither restricted nor invested in capital assets (net of related debt). Fund Balance Parameters (By Fund) 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 179 Supplemental Information essential to maintain adequate levels of fund balance to mitigate current and future risks and to ensure stable tax levies. Credit rating agencies carefully monitor levels of fund balance to evaluate a City's credit worthiness. Revenues received within a given fund are specifically committed for its related purpose. Revenues reported within any fund may be modified from time to time through the annual budget process. The following parameters will be used as part of the budget process to establish targets for the following funds: o General Fund — The unrestricted fund balance target should be set at 120 days 4 months) of estimated operating expenditures including those expenditures reported in other Governmental Funds that receive annual operating transfers, with the exception of transfers intended to fund capital projects. If the unreserved fund balance falls below 120 days, a plan will be developed to return to the target balance. If the unreserved fund balance reaches a low of 90 days (3 months), the plan will be implemented to return the fund balance to the target within a reasonable amount of time. One-time revenues shall not be used to fund current operations. This level of fund balance shall provide the capacity to: Offset unexpected downturns in elastic revenues due to fluctuations in the local, state and national economies or the loss of a major sales tax contributor(s); Offset negative fiscal changes brought about by action or legislation of another unit of government or agency; Ensure the continued, timely repayment of debt obligations that the City may have in the event of a financial downturn; Provide a sufficient cash flow for daily financial needs at all times; and, Provide a funding source for unanticipated expenditures or emergencies that may occur. Funds in excess of the minimum may be 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. 180 Supplemental Information o Civil Defense Fund — The unrestricted fund balance should be maintained at 120 days (4 months) of estimated operating expenditures. Additional fund balance needs to be retained to address long-term equipment replacement and or repair. o Alarm Board Fund — The unrestricted fund balance should be maintained at 120 days (4 months) of estimated operating expenditures. Additional fund balance needs to be retained to address long-term equipment replacement. o Audit Fund — No target is established for this fund. Any fund balance accumulated within this fund will be utilized to lower operating transfers from other funds or the property tax levy. o Annexation Fund — The unrestricted fund balance should be maintained at sufficient levels to address the related annual debt service payments pledged by this fund and additional funding for capital projects. o Motor Fuel Tax Fund — No target is established for this fund. The expenditures intended for the Motor Fuel Tax revenues must not exceed the amount of funds available from the State of Illinois Motor Fuel Tax Fund. These revenues should only be used for street improvements and repair, as allowed by the State of Illinois Law. o Developer Donation Fund — The unrestricted fund balance should be maintained at sufficient levels to fund park related capital projects. o Tax Increment Finance Fund — No target is established for this fund. All fund balance within this fund will go to pay for improvements completed within the TIF district. o Recreation Center Construction Fund — The unrestricted fund balance should be maintained at 120 days (4 months) of estimated operating expenditures. Additional fund balance needs to be retained to address long- term equipment/furniture replacement or other unforeseen capital needs. o Special Service Area #4 (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. 181 Supplemental Information 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. o Water and Sewer Fund — The Water and Sewer Fund cash and investment balance should be maintained at a minimum level of 25%-35% of the previous year's operating expenses taking into account typical levels of expenditures required for capital outlays. Rates should be maintained at sufficient levels to meet the costs of water and sewer programs, fund depreciation, and build reserves for future capital needs. Water rates for consumers will be reviewed on an annual basis based on operating and capital needs. If the balances fall below the minimum, rates will be adjusted so as to gradually return to the minimum within a reasonable period of time. If balances exceed the minimum, the overage will be used to keep future rate increases lower or fund capital projects for the water/sewer systems. o Capital Development Fund — No target is established for this fund. The expenditures in this fund are to be used for retiring debt service and for capital expenditures. o Utility Improvements Fund — No target is established for this fund. The expenditures in this fund are to be used for capital infrastructure expenditures. One-time revenues should be placed in this fund. However, the City will plan appropriately and maintain a sufficient reserve in order to meet the long-term capital planning, projected cash flow requirements, and infrastructure needs of the community. o Marina Operations Fund — No target is established for this fund. All fund balance within this fund will go to maintain the City owned marina. o Employee Insurance Fund — No target is established for this fund. Any fund balance accumulated within this fund will be utilized to provide stability for the City's health insurance costs. o Risk Management 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 risk management costs. o Information Technology Fund — The unrestricted fund balance should be maintained at 120 days (4 months) of estimated operating expenditures. Additional fund balance needs to be retained to address capital expenditures. o Employee Flexible Spending Fund — No fund balance is maintained within this fund. This fund is used only as an agency fund. 182 Supplemental Information 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. o Police Pension Fund — Fund balance targets will be determined through the Police Pension Board and the annual actuarial analysis. 183 Supplemental Information Capital Improvement Program Financial Policy The Capital Improvements Program (CIP) plan shall identify projects, their costs and the revenue sources and amounts needed to finance them. 2. The first year of the CIP program effectively becomes the capital projects budget within the operating budget for the year subject to the availability of adequate funds in the operating budget. Approval of the CIP does not guarantee that funds will be appropriated for the projects included in the first year of the CIP. 3. For General Obligation Debt, the City will maintain a debt to assessed value ratio that is 25% more stringent than the state debt limit (State limit is 8.625% of EAV; proposed limit would reduce to this ceiling to approximately 6.5% of EAV or $25.5 million outstanding). 4. Bonds issued to finance capital projects shall be structured to coincide as closely as feasibly possible to the useful life of the project. By equitably distributing the costs of the project over time, those citizens actually benefiting from the project will share in the cost. In no instance shall the maturity exceed the useful life of the project. 5. The City will not use long-term debt for current operations. 6. Where feasible, the City shall investigate the use of all sources of revenue available before using local property tax funds for capital projects. 7. Where feasible, the City will pursue project financing mechanisms - such as special service areas, special assessments or other mechanisms - that target citizens receiving a disproportionate share of the project benefit. 184 Supplemental Information Investment Policy I. Policy It is the policy of the City of McHenry to invest public funds in a manner which will provide the highest investment return with the maximum security while meeting the daily cash flow demands of the City and conforming to all state and local statutes governing the investment of public funds. II. Scope This policy includes all funds governed by the Mayor and Council ("City Council"). III. General Objectives The primary objectives, in priority order, of investment activities shall be safety, liquidity, and yield: A. Safety. Safety of principal is the foremost objective of the investment program. Investments shall be undertaken in a manner that seeks to ensure the preservation of capital in the overall portfolio. The objective will be to mitigate credit risk and interest rate risk. 1. Credit Risk. The City will minimize credit risk, the risk of loss due to the failure of the security issuer or backer, by: a) Limiting investments to the safest types of securities. b) Pre -qualifying the financial institutions, brokers/dealers, intermediaries, and advisers with which the City will do business. c) Diversifying the investment portfolio so that potential losses on individual securities will be minimized. 2. Interest Rate Risk. The City will minimize the risk that the market value of securities in the portfolio will fall due to changes in general interest rates, by: a) Structuring the investment portfolio so that securities mature to meet cash requirements for ongoing operations, thereby avoiding the need to sell securities on the open market prior to maturity. 185 Supplemental Information b) Investing operating funds primarily in shorter -term securities, money market mutual funds, or similar investment pools. B. Liquidity. The investment portfolio shall remain sufficiently liquid to meet all operating requirements that may be reasonably anticipated. This is accomplished by structuring the portfolio so that securities mature concurrent with cash needs to meet anticipated demands (static liquidity). Furthermore, since all possible cash demands cannot be anticipated, the portfolio should consist largely of securities with active secondary or resale markets (dynamic liquidity). A portion of the portfolio also may be placed in money market mutual funds or local government investment pools which offer same -day liquidity for short-term funds. C. Yield. The investment portfolio shall be designed with the objective of attaining a market rate of return throughout budgetary and economic cycles, taking into account the investment constraints and liquidity needs. Return on investment is of secondary importance compared to the safety and liquidity objectives described above. The core of investments are limited to relatively low risk securities as identified in this policy in anticipation of earning a fair return relative to the risk being assumed. Securities shall not be sold prior to maturity with the following exceptions: 1. A security with declining credit may be sold early to minimize loss of principal. 2. A security swap would improve the quality, yield, or target duration in the portfolio. 3. Liquidity needs of the portfolio require that the security be sold. IV. Prudence The standard of prudence to be used by investment officials shall be the "prudent person" standard and shall be applied in the context of managing an overall portfolio. Investment officers acting in accordance with written procedures and this investment policy and exercising due diligence shall be relieved of personal responsibility for an individual security's credit risk or market price changes, provided deviations from expectations are reported in a timely fashion and the liquidity and the sale of the securities are carried out in accordance with the terms of this policy. Investments shall be made with judgment and care, under circumstances then prevailing, which persons of prudence, discretion and intelligence exercise in the management of their own affairs, not for speculation, but for investment, considering the probable safety of their capital as well as the probable income to be derived. 186 Supplemental Information V. Ethics and Conflicts of Interest Officers and employees involved in the investment process shall refrain from personal business activity that could conflict with the proper execution and management of the investment program, or that could impair their ability to make impartial decisions. Employees and investment officials shall disclose any material interests in financial institutions with which they conduct business. They shall further disclose any personal financial/investment positions that could be related to the performance of the investment portfolio. Employees and officers shall refrain from undertaking personal investment transactions with the same individual with whom business is conducted on behalf of the City. 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 150-1 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. 187 Supplemental Information 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 pubic 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. 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 D-1 or higher) by a nationally recognized rating agency. D. Investment -grade obligations of state, provincial and local governments and public authorities. E. Repurchase agreements only if the underlying purchased securities consist of government securities which are subject to the Government Securities Act of 1986 or as authorized in 30 ILCS 235/2(h)(1)-(l1). 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. 188 SuDDlemental Information X. Safekeeping and Custody All security transactions, including collateral for repurchase agreements, entered into by the City, shall be conducted on a delivery -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 repurchase agreements to ensure that appropriate liquidity is maintained in order to meet ongoing obligations. XII. 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. XIII. 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 189 Supplemental Information 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. XIV. Performance Standards The investment portfolio will be managed in accordance with the parameters specified within this policy. The portfolio should obtain a market average rate of return during a market/economic environment of stable interest rates. A series of appropriate benchmarks shall be established against which portfolio performance shall be compared on a regular basis. XV. Reporting The Investment Officer, or his designee, shall prepare an investment report at least quarterly, including a management summary that provides an analysis of the status of the current investment portfolio and transactions made over the last quarter. This management summary will be prepared in a manner which will allow the City to ascertain whether investment activities during the reporting period have conformed to the investment policy. The report should be provided to the Investment Officer, the legislative body, and any pool participants. The report will include the following: A. Listing of individual securities held at the end of the reporting period. 190 Supplemental Information B. Realized and unrealized gains or losses resulting from appreciation or depreciation by listing the cost and market value of securities over one-year duration that are not intended to be held until maturity. C. Average weighted yield to maturity of portfolio on investments as compared to applicable benchmarks. D. Listing of investment by maturity date. E. Percentage of the total portfolio which each type of investment represents. XVI. Marking to Market A statement of the market value of the portfolio shall be issued to the Mayor and City Council quarterly. XVII. Exemption Any investment currently held that does not meet the guidelines of this policy shall be exempted from the requirement of this policy. At maturity or liquidation, such monies shall be reinvested only as provided by this policy. XVIII. Amendments This policy shall be reviewed on an annual basis. The Investment Officer may implement changes in the investment policy after gaining approval from the Mayor and City Council for the amendments. Any and all amendments to the investment policy shall be provided to the individual(s) charged with maintaining internal controls. XIX. Investment Policy Adoption The investment policy shall be adopted by the Mayor and City Council. The policy shall be reviewed on an annual basis by the Investment Officer and any modifications made thereto must be presented to the Mayor and City Council for approval. 191 Subblemental Information Community Profile The City of McHenry was first settled in 1836, incorporated as a village in 1872 and as a city in 1923. It is comprised of approximately 40 square miles and is located in eastern McHenry County along the Fox River. The City is located at the entrance of the Chain O'Lakes water way along the Fox River and as such has gained popularity as the "Gateway to the Chain O'Lakes". The Chain O'Lakes region is a series of nine interconnected lakes extending from Wisconsin south to McHenry and the adjoining state parks and conservation areas. The Chain O'Lakes is reported to be the second most popular boating and outdoor recreational area in the United States. Municipal boundaries incorporate water frontage along the Fox River, McCullom Lake and Boone Lagoon. The City is located approximately 50 miles northwest of Chicago's Loop, 15 miles south of the Wisconsin State Line and is directly west of Moraine Hills State Park. The City's 2008 equalized assessed valuation shows approximately 70% of the assessed valuation as residential community; 29% as commercial and industrial; and 1% railroad, farm and mining. The City's population increased over 32% in the ten-year period from 1990 to 2000, from 16,177 to 21,501 persons. Based on the 2010 Census the City has a population of 26,992. Government Structure The City is a home rule community and operates under a Mayor/City Council form of government. The seven members of the City Council are elected from seven wards for staggered four-year terms. The Mayor and City Clerk are also elected at large and also serve four-year terms of office. The City Council appoints numerous City officials, including a City Administrator, a City Attorney, a City Engineer, a Police Chief, and Directors of Finance, Public Works, Parks and Recreation, and Community and Economic Development. The day- to-day operations of the City are the responsibility of the City Administrator. Transportation The City offers convenient access to two state routes, Illinois State Route 120 is east/west and Route 31 is north/south. Illinois Route 120 provides five lanes between Illinois State Route 31 and Martin Road. The Northwest Tollway (Interstate 90) is accessible approximately twenty miles south of the City, and Interstate 94 is accessible approximately twenty miles east of the City. Chicago's O'Hare Airport is located approximately 40 miles southeast of the City. METRA's Chicago and Northwestern rail line serves City commuters between Chicago and Harvard, Illinois, with regular stops at its stations in nearby Cary, Crystal Lake and Woodstock. METRA also provides stops in its McHenry station. Bus service is available to City residents through the PACE suburban bus system. Senior transportation services are available through Pace and through McHenry Township. 192 Supplemental Information Education Public School District Numbers 15 and 156 serve the majority of City residents. Community High School District Number 156 has two high school buildings and an enrollment of approximately 2,200 students. Community Consolidated School District Number 15 has eight school buildings and an enrollment of approximately 4,600 students. The City is within the boundaries of McHenry Community College District No. 528, a two- year college, which offers more than 50 associate degrees and over 15 certificates in liberal arts and technical programs leading to employment or further study at four-year colleges or universities. Other higher education opportunities for residents are located at facilities throughout the greater Chicago metropolitan area. Community Services Utility companies serving City residents include NICOR, ComEd, AT&T (telephone) and Comcast Cable. Residents have access to two medical centers in the City, Centegra Northern Illinois Medical Center and Northern Illinois Medical Center, and a total of six hospitals located in surrounding areas. City residents are served by the McHenry Public Library District and the McHenry Township Fire Prevention District. The McHenry Public Library has a collection of over 103,000 books and periodicals, 7,000 videos and DVDs, and 5,700 audio materials. Both the library and the fire district are separate entities from the City, operate their own programs and facilities and file separate tax levies. 193 Supplemental Information Glossary Accrual Basis of Accounting: 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 make expenditures and to incur obligations for specific purposes. Assessed Valuation: A valuation set upon real estate or other property by a government as a basis for levying taxes. Availability Criterion: Principle of the modified accrual basis of accounting according to which revenues may only be recognized when they are collectible within the current period or soon enough thereafter to be used to pay liabilities of the current period. Basis of Accounting: The timing of recognition, that is, when the effects of transactions or events should be recognized for financial reporting purposes. For example, the effects of transactions or events can be recognized on an accrual basis (that is, when the transactions or events take place), or on a cash basis (that is, when cash is received or paid). Bond: A written promise to pay a specific sum of money, called the face value or principal amount, at a specified date or dates in the future, called the maturity dates, together with periodic interest at a specified rate. Budget: The financial plan for the operation of a program or organization, which includes an estimate of proposed expenditures for a given period, and the proposed means of financing those expenditures. Budget Message: A general outline of the budget, which includes comments regarding the government's experience during the past period, its financial status at the time of the message, and recommendations regarding the financial policy for the coming period. Budgetary Basis of Accounting: The method used to determine when revenues and expenditures are recognized for budgetary purposes. Business -Type Activities: Activities of the City that are financed in whole, or in part, by fees charged to external parties for goods or services. These activities are accounted for as enterprise funds and include the Airport, Transit, Parking, Golf Course, Boat Harbor, Marina, Ambulance, Refuse Collection, Landfill, Transfer Station, Water Pollution Control, and Collection and Drainage Funds. 194 Supplemental Information Capital Improvements Program: An annually updated plan or schedule of projected expenditures for public facilities and improvements which includes estimated project costs, sources of funding, and timing of work over a five-year period. For financial planning and general management, the program is presented as a plan of work and proposed expenditures, and is the basis for appropriation requests and bond issues. Capital Outlay: Fixed assets which have a value of $300 or more and have a useful economic lifetime of more than one year. Capital Projects Fund: Fund used to account for financial resources to be used for the acquisition or construction of major capital facilities. Commodities: Supplies required by the municipality in order to perform the services to its citizens. Community and Economic Development Function: Government function that provides for planning and development of the City including the social, physical and economic needs of the City. Activities included in this function are Planning, Zoning and Building Safety, Economic Development and the Municipal Housing Programs. Contractual Services: Services other than employee services such as contractual arrangements and consultant services, which may be required by the municipality. Culture and Recreation Function: This function promotes the general well being of the City and encourages the fullest development of cultural and educational potentials of the citizens in the community. This function includes the activities of library, art center, parks and recreation, and cemetery. Debt Service Fund: A fund established to account for the accumulation of resources for and the payment of general long-term debt, principal, and interest. Depreciation: An appropriation is expended when a capital asset is acquired or constructed. By definition, a capital asset has a service life expected to extend over more than one fiscal period. The process of allocating the cost of a capital asset to the periods during which the asset is used is called depreciation. Encumbrances: Obligations in the form of purchase orders, and/or contracts, which are chargeable to an appropriation and for which a part of the appropriation is reserved. Enterprise Fund: A fund established to account for operations that are financed and operated in a manner similar to private business enterprises. The intent of a governing body is that the cost of providing goods and services to the general public on a continuing basis be financed or recovered primarily through user charges or where the governing body has decided that periodic determination of revenues earned, expenses incurred and/or net income is appropriate for capital maintenance, public policy, management control, accountability, or other purposes. 195 Supplemental Information Expenditures: The cost of goods received or services rendered for the government unit. For the City of McHenry, expenditures are charged against an appropriation when incurred, not when paid. Fiscal Policy: The City of McHenry's policy with respect to taxes, spending and debt management as they relate to government services, programs, and capital investments. Fiscal Year: A twelve-month period to which an annual operating budget applies. Fringe Benefits: Benefits paid by the City of McHenry for social security, retirement, group health, life, dental and long-term disability insurance. It also includes costs for worker's compensation and unemployment. Function: A group of related activities aimed at providing a major service or regulatory program for which a government is responsible. Fund: The fiscal and accounting entity with a self -balancing _set of accounts recording cash and other financial resources together with all related liabilities and residual equity or balances and changes therein which are segregated for the purpose of carrying out specific activities or obtaining certain objectives in accordance with special regulations, restrictions or limitations. Fund Balance: Funds remaining after the application of available revenues and resources to support expenditures for the fund. General Fund: A fund used to account for all financial resources except those required to be accounted for in another fund. General Government Function: Function that provides for the operation of the government and assures the general administration of the municipality. Activities included in this function are mayor and council, legal services, city administrator, human resources, wellness program, finance, computer operations, risk management, and buildings and grounds. General Obligation Bonds: Bonds for the payment of which the full faith and credit of the issuing government are pledged. Goal: Broad statement of desired results for the city, department, and/or activity relating to the quality of services to be provided to the citizens of McHenry. Governmental Funds: Funds generally used to account for tax -supported activities. There are five different types of governmental funds: the general fund, special revenue funds, debt service funds, capital projects funds, and permanent hinds. Health and Social Services Function: Government function which provides for assistance to service agencies involved in providing health and social services in the community. For the City, this function includes the Economic Well -Being activity. 196 Supplemental Information 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. Levy 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 to accomplish within a given time frame, which are directed to a particular goal. An objective should be stated in terms of results, not processes or activities. For the City of McHenry, departmental objectives are included in the department's budget request. Ordinance: A formal legislative enactment by the governing body of a municipality. Performance Measurement: Commonly used term for service efforts and accomplishments reporting. Permanent Funds: A fiduciary fund type used to report resources that are legally restricted to the extent that only earnings, and not principal, may be used for purposes that support the reporting government's programs. Personal Services: Expenditures for salaries, wages, and related employee benefits for persons employed by the municipality. Proprietary Funds: Funds that focus on the determination of operating income, changes in net assets (or cost recovery), financial position, and cash flows. There are two different types of proprietary funds: enterprise funds and internal service funds. 197 Supplemental Information 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 Works Function: Government function that provides for safe and well -maintained infrastructure for the City. Activities included in this function are public works administration, roadway maintenance, snow and ice control, street cleaning, traffic control and engineering. Resolution: An order of a legislative body requiring less legal formality than an ordinance; additionally, it has less legal status. Revenue: Income received by the City of McHenry to support the government's program of services to the citizens. Income includes such items as property tax, fees, user charges, grants and fines. Special Assessment: A compulsory levy made against certain properties to defray part or all of the cost of a specific improvement or service deemed to primarily benefit those properties. Special Revenue Funds: Funds used to account for proceeds of specific revenue sources that are legally restricted to expenditures for specified purposes. Taxable Valuations: Valuations set upon real estate or other property by a government as the basis for levying taxes. Taxes: Compulsory charges levied by government for the purpose of financing services performed for the common benefit. This does not include specific charges made against particular persons or property for current or permanent benefits such as special assessments. Trust and Agency Funds: Funds used to account for assets held by a government in a trustee or agent capacity for individuals, private organizations, other governments, and/or other finds. 198